Business
3 reasons why international support for Sri Lanka is forthcoming slowly: policy advisor explains
By Sanath Nanayakkare
Dr. Ganeshan Wignaraja, a non-resident senior fellow at the Institute of South Asia Studies at the National University of Singapore recently gave three reasons why monetary support is not forthcoming from many countries that can extend support to Sri Lanka.
He gave these reasons at a recent webinar titled’ Confronting the Current Foreign Exchange Crisis in Sri Lanka –Lessons from Global Experience’, hosted by the Central Bank of Sri Lanka.
” It could be due to several reasons. First, something like 60% of the poorest countries in the world is under debt distress although they have not quite defaulted.”
“Second, we are at a recession risk globally and the countries we might want support from, are at some sort of risk. So they are naturally concerned about providing assistance to others as they are preoccupied and looking inward. Multilateralism is also under stress in this context.”
“The third reason is; there is an argument made in the eyes of some countries that Sri Lanka’s debt default is seen as a home-grown crisis due to poor macroeconomic management and governance. We hear a lot about why other countries’ taxpayer dollars should be used to support a failed economy like Sri Lanka’s. This is a query thrown at me by people from other countries,” he said.
The following are some select remarks made by him during the webinar.
“Sri Lanka would need US$ 20-25 billion over the next three years from the IMF, multilateral agencies and other friendly countries to put its economy on a decent footing and get growth going, “And remember, that’s about a quarter of Sri Lanka’s GDP. The country needs that kind of money if it really is going to go forward.”
“Along with the assistance from the IMF, bridging finance is also needed urgently from India, China and Western countries not only to provide basic needs for the people such as fuel, food and medicine but also to help stabilise the economy. In this context, Sri Lanka needs to do four things.”
“First, we need to show that we are serious about fixing our economy and convince these countries that we are worthy to gain their confidence. It is important that the IMF programme is implemented in a transparent and credible manner. Sri Lanka has had 16 IMF programmes. I believe that something like half of them was not either properly implemented or perhaps abandoned. I think this time around we will be under the microscope, so we need to implement the programme properly.”
“Second, we need to build a consensus on this IMF programme.There are still people out there that go around saying,” Forget the IMF; we can eat ‘Bathalakola’. That’s something which is not going to cut the mustard for Sri Lanka in the current circumstances. I think that sort of people have to be called out and we have to publicize the implementation of the IMF programme.”
“Third; we have to ensure that any foreign aid we get is fairly distributed to all Sri Lankans in all provinces equitably. It will also have to be ensured that there will be crackdown on any corruption in allocating this aid. We will have to be ‘on the money’; therefore, anti-corruption measures will need to be very strong.”
“Fourth; we need to be serious on our foreign policy without dillydallying. We have to pursue a very strict non-aligned economic and foreign policy. If Sri Lanka does these four, it will have a fair sporting chance to get a decent score on the board and turn Sri Lanka around with trade, investment and foreign assistance,” Dr. Wignaraja said.
Grand Leisure Care and Wellness Resort has officially opened in Kochchikade, Negombo, introducing a resort-style senior living facility designed to international standards. Offering a blend of comfort, medical care, and wellness, the facility features private rooms with bathrooms, pantries, and modern living spaces. With 24/7 medical staff, wellness programmes, and family accommodation options, Grand Leisure caters to both independent and dependent seniors. The resort includes gardens, entertainment facilities, and high-speed internet to support residents’ well-being and connectivity. Positioned as a high-quality alternative to traditional elderly homes, it is open for short-term recovery or long-term stays, said a release.
The Chamber of Lankan Entrepreneurs (COYLE) last week announced the appointment of Mr. Manjula Wijesundara as its new Chairman for the year 2025/26. A COYLE news release described him as a “respected entrepreneur and passionate advocate for business-led development” and said he steps into leadership with a bold theme that reflects the needs of the hour—”A Year of International Growth.”
With the global economy undergoing profound shifts, the appointment marks a timely change in COYLE’s strategic focus, the release said.
In his inaugural remarks, the new Chairman articulated a vision for strengthening Sri Lanka’s economic resilience through robust international engagement and enhanced global market access for Sri Lankan businesses. His message was clear: sustainable economic recovery will come from expanding the nation’s presence beyond its borders.
“As Sri Lankan entrepreneurs, we must look outward and act with purpose. The next phase of our growth lies in our ability to compete, collaborate, and lead in international markets. This year will be about building bridges—with policymakers, global partners, and emerging economies—to position Sri Lanka as a trusted trade and investment partner,” Wijesundara stated.
Under his leadership, COYLE will actively pursue stronger relationships with international chambers, diplomatic missions, and trade bodies, laying the groundwork for more meaningful bilateral and multilateral cooperation. The Chamber’s focus will be to support and amplify the voice of Sri Lankan entrepreneurs globally—especially in sectors such as apparel, rubber, tea, ICT, and manufacturing, which continue to be among the country’s highest foreign exchange earners.
Wijesundara believes that strong international relations not only open new doors for exports but also attract critical investments and partnerships needed to modernise Sri Lanka’s industries and infrastructure. “In an interconnected world, diplomacy and business must go hand in hand. Our vision is to be a trusted ally in economic diplomacy,” he noted.
As part of this agenda, COYLE is preparing to lead a series of structured engagements with foreign policymakers and trade delegations. These efforts are aimed at helping Sri Lankan businesses overcome barriers to market entry, navigate evolving regulatory frameworks, and build long-term partnerships across key regions including South Asia, the Middle East, East Asia, and Europe.
By taking a proactive approach, the Chamber hopes to influence international trade conversations and ensure that Sri Lanka remains competitive in an increasingly protectionist global environment. COYLE also aims to foster stronger diaspora business linkages that could be leveraged to expand the country’s export footprint.
Business
Dialog Axiata Connects Sri Lanka to the World with the India-Asia Xpress Subsea Cable Strengthening Redundancy and Global Data Connectivity
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, announced the launch of the IAX (India Asia Xpress) submarine cable system—a significant investment aimed at bolstering Sri Lanka’s international network and future-proofing the country’s digital infrastructure. Consequently, Dialog’s total investments in international connectivity infrastructure surpassed USD 100 million.
This milestone was achieved through collaborative efforts with a consortium of regional telco partners and global hyperscalers, led by Reliance Jio—underscoring Dialog’s commitment to building strategic alliances that drive technological advancement and innovation.
The IAX cable system significantly enhances Sri Lanka’s global connectivity by providing high-speed, high-capacity bandwidth, catering to the growing demands of 5G, AI, and other data-intensive applications. Designed with cutting-edge technology, the IAX cable integrates seamlessly into Dialog’s existing subsea infrastructure, ensuring scalable and efficient data transmission between major global content hubs in Mumbai, Chennai, and Singapore. This development further cements Sri Lanka’s role as a key player in the region’s digital transformation.
To commemorate this strategic milestone, Dialog hosted an official launch event at the Dialog IAX Submarine Cable Landing Station in Matara. The event was graced by several distinguished dignitaries, including His Excellency Badli Hisham Adam, High Commissioner of Malaysia; Mr. Harvinder Singh, Consul General of India; Mr. Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata Group Berhad; and Supun Weerasinghe, Director / Group Chief Executive of Dialog Axiata PLC, along with other representatives from Dialog.
Launch of the IAX Submarine Cable (photographed from left to right): Mr. Lasantha Theverapperuma, Group Chief Marketing Officer, Dialog Axiata PLC; Ms. Lim Li San, Group Chief Operating Officer, Dialog Axiata PLC; Mr. Ranga Kariyawasam, Group Chief Technology Officer, Dialog Axiata PLC; Mr. Harvinder Singh, Consul General of India; His Excellency Badli Hisham Adam, High Commissioner of Malaysia; Mr. Vivek Sood, Group Chief Executive Officer and Managing Director, Axiata Group Berhad; and Mr. Supun Weerasinghe, Director and Group Chief Executive, Dialog Axiata PLC.
The integration of the IAX cable reinforces Sri Lanka’s digital infrastructure with enhanced resilience and redundancy. By complementing the existing BBG (Bay of Bengal Gateway) and MSC (Maldives Sri Lanka Cable) systems, the IAX cable strengthens network reliability, mitigating risks associated with single points of failure. Dialog’s advanced Cable Landing Stations in Matara and Mount Lavinia ensure seamless, uninterrupted connectivity, offering businesses and consumers a more secure and robust digital experience.
Supun Weerasinghe, Director / Group Chief Executive of Dialog Axiata PLC said, “We are pleased to strengthen Sri Lanka’s digital backbone with the launch of the IAX submarine cable, made possible through collaboration with our valued global partners. This investment reinforces our commitment to empowering Sri Lankan lives and enterprises with world-class infrastructure, ensuring the nation stays ahead in an increasingly digital world. By improving network reliability and expanding capacity, we are working towards a more resilient and inclusive digital ecosystem.”
As a key player in the region’s connectivity landscape, Dialog continues to drive Sri Lanka’s position as a critical hub for global communications infrastructure. Through continuous investment in cutting-edge network solutions and strategic partnerships, Dialog is shaping the future of digital connectivity, empowering enterprises and consumers with world-class infrastructure that supports economic growth and technological innovation.
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