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ADB loans serve as big push for SMEs in the hinterland of Sri Lanka

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Timely funds rekindle the spirit of entrepreneurship

by Sanath Nanayakkare

As a multilateral bank the Asian Development Bank (ADB) has supported the SME sector in the country for a long time with many lending products and capacity building assistance. The Island Financial Review recently had the opportunity to meet with beneficiaries of five SME projects recently supported by the ADB in areas of the southern province far away from the cities. It was clear that ADB’s timely funds were quintessentially empowering the spirit of entrepreneurship in the hinterland.

These five beneficiary SMEs were from Karandeniya, Ambalangoda, Habaraduwa, Elpitiya and Thalgampala. They are actively and full-time engaged in different businesses, namely; cinnamon quilling and processing, coir product manufacturing and exporting, Ayurveda product manufacturing and exporting, spice production/sales and Orthodox black tea manufacturing. There were two successful women entrepreneurs among them who had built profitable businesses while creating a significant number of jobs for the youth in their areas. The following is a brief account of each of the SMEs served by ADB funds.

Pradeep Premaratne in Karandeniya operates a small yet successful cinnamon quilling and processing facility at his house with the support of his wife. The Regional Development Bank (RDB) one of the 13 participating banks to whom ADB funds are routed through the Ministry of Finance, had given a LKR 1.5 million loan to Pradeep as a working capital facility. It was a collateral free loan at an interest of 11.5%. Pradeep and his wife who earlier made cinnamon sticks from 100 kilos of raw cinnamon trees today employ 5 – 7 workers and process 300-500 kilos of raw tree per day and supplies about 850 kilos of finished sticks to the market for export on a monthly basis. He said that his monthly earnings had increased by about four fold as a result of the ADB working capital loan.

M.C De Zoysa, Managing Director- M.C Enterprises in Idantota, Ambalangoda received an ADB loan of LKR 10 million through Seylan Bank for his coir product manufacturing and exporting business. He received the loan during the covid pandemic period and he described the loan as a great ‘prop up’ at the time. “During the pandemic, people in many countries started growing their own food and the demand for coco peat for garden plants saw a phenomenal increase. ADB working capital loan I received enabled me to expand my production and meet the increased demand. The profits I made were re-invested for purchasing new machinery. If not for the ADB loan, I wouldn’t have been able to take advantage from that situation.”

He exports 30- 50 containers of coconut and coir-based products per month to South Korea, the Middle East, U.S.A. and China. The factory provides 75 direct jobs and more than 3000 indirect jobs. Zoysa is planning to expand his factory space and install a transformer while exploring solar power solutions for his operations.

Woman entrepreneur Supuli Karunaratne, managing director at Nature Healing Ayur (Pvt) Ltd in Habaraduwa received a loan of LKR 4 million and a grant of LKR 1 million under ADB’s Women Entrepreneurs Finance Initiative to expand her business in herbal food supplements manufacturing and exporting. Today she owns a new capsule filling machine with the capacity to fill 3,000 capsules in one hour which has significantly reduced her manual workforce. She exports health supplement products to countries such as Switzerland, Lithuania, Japan, and the Maldives.

Woman entrepreneur Chandanie Samanthi, director at Thalgampala Thunapaha (Pvt) Ltd received an ADB loan of LKR 3 million as a working loan facility through Nations Trust Bank. “My company with the support of my husband and staff achieved 30% growth this year compared to Year 2021 and I expect significant growth in the next 12 months. I am planning to expand our outlets network to Colombo and Jaffna in the coming years. Now we produce about 3,000 kilos of spice per day and sell just about the same volume while having a surplus stock at any given time. We are striving to attract higher customer appeal for the brand each year and we will position Thalgampala Thunapaha as the best Sri Lankan spice brand by 2029.”

Anura de Siva, chairman/managing director at Marakanda Tea Factory in Elpitiya of Evergreen Group received an ADB loan of LKR 10 million through DFCC Bank in Galle as a working capital facility.

Evergreen Group Accountant Danuka Dassanayake said,” The total loan amount we obtained from DFCC was LKR 35 million. Out of that we obtained refinance of Rs. 10 million from ADB at an interest rate of 4.75%. The total funds were used for building our CTC factory and purchase CTC machinery. The ADB loan share reduced our interest cost significantly making a positive impact on our finances and making our journey easier.”

Senal de Silva, director of the Group said that there are 13 factories in the Group and they contribute 4% of the total national tea export volume. “We acquired Marakanda at a time it had been closed down. We have been able to turn it around to a better position but it is still the weakest in the Group. However, it remains resilient thanks to the strength of the Group. Marakanda faces the issue of procurement of good tea leaf from the area. Other than that everything is stable. Tea smallholders do not care about the fact that harvesting methodology has a huge impact on the quality of the tea and its grading as per export-market benchmarks. I think that the government has a role to play in creating awareness among them and to educate them on the right balance between quality and quantity when providing their yield to factories for processing. There is fierce competition among the tea factories to procure tea leaf, therefore, tea smallholders are tempted to cut corners because they can supply anything to the factories. This should be corrected through the intervention of the authorities,” he said.

Marakanda tea factory employs 70 workers on a daily basis while the Group employs a total of 1,500 workforce.

SME Line of Credit Project of the ADB has three tranches which provide USD 340 million of assistance to the SME sector commencing from 2016. The first disbursement of USD 100 million and the second disbursement of USD 75 million through additional financing have already been utilized. The third disbursement through another additional financing of USD 165 million is currently being utilized by the participating banks to provide further access to finance SMEs.



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Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

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The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday  (30)  morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs,  S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

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Construction industry offers blueprint for Sri Lanka’s recovery

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Eng Nissanka N Wijeratne

The dawn of 2026 represents a time for critical recalibration, not just ceremony, for the nation’s vital construction sector, says Eng Nissanka N Wijeratne, Secretary General/CEO of the Chamber of Construction Industry (CCI).

In a New Year message, Wijeratne reframes the annual greeting as a strategic call to action. “For Sri Lanka’s construction industry – the true backbone of our economy – the turning of the calendar is an ideal moment for a realistic and forward-looking assessment,” he states.

His vision sketches a practical blueprint where the unprecedented challenges of the recent past become the foundation for a smarter, more sustainable future.

The industry, long considered a barometer of national prosperity, has weathered severe headwinds: economic volatility and spiraling material costs. “These were not mere business cycles, but unprecedented tests,” Wijeratne notes, acknowledging the severe strain on firms and professionals. Yet, the sector’s response, he observes, has been “nothing short of remarkable,” showcasing a deeply ingrained resilience.

The Chamber’s chosen theme for the year, “Resilience through Innovation,” signals a pivotal shift from enduring hardship to actively engineering progress.

The pathway forward, Wijeratne outlines, is built on three interdependent pillars.

First is the revitalization of Infrastructure. “This is not a simple call for new projects,” he clarifies, “but a strategic push to reactivate stalled ventures and initiate sustainable developments in concert with the government and international agencies.” He emphasises that construction activity is intrinsically linked to the broader economy’s pulse, where resuming projects catalyses employment, energises supply chains, and restores public confidence.

The second pillar, technological Integration, addresses the urgent need to modernise the sector’s core. Advocacy for Building Information Modeling (BIM), green building practices, and digital project management is a direct answer to past inefficiencies. “It is a commitment to ensuring Sri Lankan construction is not just rebuilt, but upgraded becoming more competitive, cost-effective, and environmentally responsible,” Wijeratne says. ” Innovation must move from slogan to practice, transforming how the nation conceives, builds, and maintains its infrastructure,” he notes.

The third pillar, consistent policy advocacy, underpins all efforts. The Chamber positions itself as a vital intermediary, fighting for fair pricing mechanisms, streamlined regulations, and a protective framework for local contractors. Wijeratne stresses that the best-laid plans of engineers can falter without a conducive policy environment, calling for a strengthened partnership with the state to create a level playing field where skill and enterprise determine success.

Ultimately, Wijeratne’s message is a powerful reminder of the industry’s profound legacy. “When we build, the nation grows,” he states, elevating construction from a commercial activity to a national mission. The structures that rise from the ground are more than concrete and steel; they are the schools, hospitals, roads, and homes that shape the nation’s future.

As Sri Lanka steps into 2026, the construction industry’s message is clear: it is ready to transform resilience from a trait of survival into a dynamic force for innovation.

The past challenges, according to Wijeratne, have been met with grit. Now, the future must be built with vision.

By Sanath Nanayakkare

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Expo Commodities and STAY Naturals honoured at the Presidential Export Awards 2024/25

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Expo Commodities (Pvt) Ltd, together with its member company STAY Naturals (Pvt) Ltd, has been recognized with Merit Awards at the Sri Lanka Export Development Board (EDB) Presidential Export Awards 2024/25, one of the country’s most prestigious platforms celebrating export excellence.

The awards were presented under the categories of Spices and Allied Products and Essential Oils, Oleoresins & Condiments, recognizing the companies’ consistent performance, product quality, and contribution to strengthening Sri Lanka’s presence in global markets.

The recognition reflects Expo Commodities’ continued focus on delivering high-quality, value-added Sri Lankan products while upholding international standards across innovation, sustainability, and responsible sourcing. Through STAY Naturals, the group has expanded its reach in key export markets, promoting Sri Lanka’s essential oils, oleoresins, and condiments derived from its rich agricultural heritage to customers worldwide.

The achievement also reflects the collective effort, technical expertise, and commitment of the teams behind the operations, alongside the continued trust of global partners and customers. Expo Commodities (Pvt) Ltd, part of Expo Commodities Global, is strategically focused on driving sustainable export growth and strengthening Sri Lanka’s global positioning as a reliable supplier of high-quality natural products.

Expo Commodities Global is a globally active Agri-commodity enterprise with operations spanning multiple origins including Sri Lanka, Vietnam, Indonesia, Madagascar, Comoros, Egypt, the UAE, India, Germany, and the Netherlands. The company specializes in the production, processing, and export of premium organic and conventional spices, coconut products, essential oils, oleoresins, and value-added agricultural products, delivering consistent quality through integrated and sustainable operations.

Expo Commodities Global and STAY Naturals (Pvt) Ltd are part of Aberdeen Holdings, a diversified Sri Lankan conglomerate with interests across pharmaceuticals, packaging, commodities, transport and logistics, power generation, and digital innovation, supporting long-term growth through strong governance, sustainability, and global market engagement.

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