Business

Business as usual no longer tenable for Sri Lanka given extremely difficult fiscal conditions: Treasury Secretary

Published

2 years ago

2023/09/7

Panel discussion at the Serendipity Knowledge Programme (SKOP) hosted by the Asian Development Bank (ADB) at Shangri La Colombo on Tuesday

By Sanath Nanayakkare

Given the extremely difficult fiscal conditions Sri Lanka is experiencing, there is no room for complacency or reversal of the key economic reforms underway because business as usual is no longer tenable for Sri Lanka, Treasury Secretary Mahinda Siriwardana warned in Colombo on Tuesday

He said so while speaking at the Serendipity Knowledge Programme (SKOP) which is an Asian Development Bank (ADB) platform dedicated to identifying knowledge solutions for Sri Lanka’s development challenges. The event was held at Shangri La Colombo where the welcome address was delivered by Kenichi Yokoyama, Director General, South Asia Development, ADB. The keynote presentation on SOE Reform: Lessons from other countries was delivered by Dag Detter, former President of Stattum and Director Ministry of Industry Sweden. Suresh Shah, Chairman, SOE Restructuring Unit was among the eminent panelists that delved deep into SOE reforms: Challenges and Opportunities for Sri Lanka.

Speaking further the Treasury Secretary said:

Treasury Secretary Mahinda Siriwardana

“Divestiture of SOEs is being discussed at a time Sri Lanka is experiencing its worst economic crisis since its independence which led to far-reaching economic and social ramifications. The government has taken a series of measures to stabilize the economy and gradually restore economic growth in a sustainable manner going forward while implementing critical economic reforms. In the present context, there is noroom for complacency and there is no margin for error by reverting to unsustainable policies and practices of the past.”

“As in many developing and emerging economies Sri Lanka’s SOEs have contributed to the ongoing crisis although they have shown a mixed record of their contribution to the economy. While some sectors like state-owned banks make an important contribution to the economy, several SOEs in sectors such as energy and transport have created persistent losses. SOEs are vulnerable to mismanagement and corruption because of potential conflicts within the ownership and the policy-making functions of the government and undue political influence on their policies, appointments and business practices. Also, their internal controls, monitoring and the government’s frameworks are inadequate to deal with these issues. Many of these institutions have pursued a monopolistic position in the market hindering private investment. Price-fixing, inefficient management and poor entrepreneurship have weakened public finances turning these institutions into national burdens dependent on the tax payers, therefore the success or the failure of these SOEs has had a significant impact on the economy as a whole. Highly loss-making SOEs such as CPC, CEB and Sri Lankan Airlines pose significant fiscal issues as their losses have to be addressed through Treasure transfers or public debt. Loss-making SOEs also create vulnerabilities in the banking system because the accumulated debt is often funded by the state banks. This has created a complex interaction between the balance sheets of these institutions, the banks and the government. All these challenges require comprehensive reforms which have been delayed for a prolonged period and have resulted in significant macroeconomic vulnerabilities. As indicated in the interim budget speech in 2022, these difficult but necessary measures pertaining to SOEs will no doubt pose challenges in its implementation, but failing to do so will have catastrophic risks in financial stability and even higher taxation burdens in the future. This is why the restructuring of SOEs is critical in terms of government revenue and expenditure. In making the necessary reforms, learning from the success stories from the neighboring economies and the rest of the world would be of great importance to us. Globally, countries have increasingly moved away from state-led development strategy, encouraging private sector to engage in business with the government making the proper policies and regulatory frameworks without compromising the long-term interests and the wellbeing of the public. To achieve these objectives the government is making progress in several key reform areas. One of them is the cost-reflective pricing of utilities and petroleum products, Sri Lanka being a net energy importing country. However, this creates hardships to the poor and the vulnerable. So the government has chosen the strategy of providing direct cash transfers and other measures of relief to those objectively identified segments of the society instead of underpricing utilities across the board. This approach will also minimize inefficient energy use by more affluent consumers.”

“Reform number two is balance sheet restructuring. The foreign-currency denominated loans guaranteed by the sovereign on behalf of CPC and most of the same of CEB, Sri Lankan Airlines and RDA will be restructured eliminating the risks and mismatches to the fiscal sector.”

“Reform number three is introducing competiveness in key economic sectors by driving productivity of these enterprises. An example for this is Sinopec, another player that entered the petroleum retail space last week. At the same time, the government has undertaken an initiative to unbundle operations at the CEB where ADB is playing a key role. This will lead to greater operational and financial indicators of electricity generation and distribution activities enabling competition within the entity, improved transparency through bulk supply transaction accounts to get better outcomes for consumers as a whole. The automation of obsolete manual reading of meters would benefit consumers through predictable and timely readings while improving efficiency of the workforce.”

“Divestment of non-strategic assets is the key reform number 4 to drive economic activity in this area. The approval of the Cabinet has already been given for divestment of several entities and transaction advisories have been appointed to support the programme in a transparent, professional manner.”

“Reform number five is governance and legislation to avoid the recurrence of financial vulnerabilities in SOEs. In this exercise, an overarching legal framework will be brought in to ensure proper appointments of SOE board members and other senior management, regular publishing of financial reports, due diligence over procurements and the upholding of corporate governance principles.”

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“We Are Building a Stable, Transparent and Resilient Sri Lanka Ready for Sustainable Investment Partnerships” – PM

Published

8 hours ago

2026/02/15

Priyan

Prime Minister Dr. Harini Amarasuriya addressed members of the Chief Executives Organization (CEO) during a session held on Thursday [3 February 2026] at the Shangri-La Hotel, Colombo, as part of CEO’s Pearl of the Indian Ocean: Sri Lanka programme.

The Chief Executives Organization is a global network of business leaders representing diverse industries across more than 60 countries. The visiting delegation comprised leading entrepreneurs and executives exploring Sri Lanka’s economic prospects, investment climate, and development trajectory.

Addressing the gathering, the Prime Minister emphasized that Sri Lanka’s reform agenda is anchored in structural transformation, transparency, and inclusive growth.

“We are committed not only to ensuring equitable access to education, but equitable access to quality education. Our reforms are designed to create flexible pathways for young people beyond general education and to build a skilled and adaptable workforce for the future.”

She highlighted that the Government is undertaking a fundamental pedagogical shift towards a more student-focused, less examination-driven system as part of a broader national transformation.

Reflecting on Sri Lanka’s recent political transition, the Prime Minister stated:

“The people gave us a mandate to restore accountability, strengthen democratic governance, and ensure that opportunity is not determined by patronage or privilege, but by fairness and merit. Sri Lanka is stabilizing. We have recorded positive growth, restored confidence in key sectors, and are committed to sustaining this momentum. But our objective is not short-term recovery it is long-term resilience.”

Addressing governance reforms aimed at improving the investment climate, she said:

“We are aligning our legislative and regulatory frameworks with international standards to provide predictability, investor protection, and institutional transparency. Sustainable investment requires trust, and trust requires reform.”

Turning to the recent impact of Cyclone Ditwa, which affected all 25 districts of the country, the Prime Minister underscored the urgency of climate resilience.

“Climate change is not a distant threat. It is a lived reality for our people. We are rebuilding not simply to recover, but to build resilience, strengthen disaster mitigation systems, and protect vulnerable communities.”

Inviting CEO members to consider Sri Lanka as a strategic partner in the Indo-Pacific region, she highlighted opportunities in value-added mineral exports, logistics and shipping, agro-processing, renewable energy, pharmaceuticals, and innovation-driven sectors.

“We are not looking for speculative gains. We are seeking long-term partners who share our commitment to transparency, sustainability, and inclusive development.”

She further emphasized collaboration in education, research, vocational training, and innovation as essential pillars for sustained economic growth.

Concluding her address, the Prime Minister expressed appreciation to the Chief Executives Organization for selecting Sri Lanka as part of its 2026 programme and reaffirmed the Government’s readiness to engage constructively with responsible global investors.

The event was attended by the Governor of the Western Province, Hanif Yusoof, and other distinguished guests.

[Prime Minister’s Media Division]

Business

High Commissioner in Pakistan urges high level business visit to Colombo

Published

8 hours ago

2026/02/15

Thilina Walpola

High Commissioner Senevirathne and Dr. Munir at meeting

The High Commissioner of Sri Lanka to Pakistan, Rear Admiral Fred Senevirathne, met Dr. Zeelaf Munir, Chairperson of the Pakistan Business Council (PBC), in Karachi on Feb. 6 and urged a high level visit of Pakistani business people to Sri Lanka, a news release from the High Commission said.

Dr. Munir, who also serves as the Managing Director and Chief Executive Officer of English Biscuit Manufacturers (EBM), leads Pakistan’s premier business policy advocacy body, which plays a key role in promoting a conducive business environment, export growth, and industrial development.

The High Commissioner who was warmly received by Dr. Munir at her office briefed her on the current economic and political landscape in Sri Lanka, highlighting the country’s improving economic outlook, enhanced political stability, and a favourable environment for foreign investment, the release said.

He also outlined the policy priorities of the new Government, with particular emphasis on ongoing economic reforms, investment-friendly initiatives, and opportunities to further strengthen bilateral economic and trade cooperation between Sri Lanka and Pakistan, it said.

He invited Dr. Munir to consider leading a delegation of prominent business leaders and investors to Sri Lanka, with a view to engaging with Sri Lankan counterparts and exploring potential investment opportunities and avenues for collaboration across key sectors.

The meeting was facilitated by. Honorary Consul of Sri Lanka in Hyderabad, Mehmood Mandviwalla, who was also present. Minister and Head of Chancery of the Sri Lanka High Commission in Islamabad, Christy Ruban, and Consul General of Sri Lanka in Karachi, Sanjeewa Pattiwila also participated at the meeting.

Business

IRONMAN 70.3 Colombo Returns, Kicks Off #ActiveColombo City Transformation

Published

8 hours ago

2026/02/15

Thilina Walpola

All partners at the Ironman 70.3 Colombo Launch with Vraîe Cally Balthazaar, Mayor of Colombo at the event held last Wednesaday at Shangri-La.

Officials from the Western Provincial Council, Colombo Municipal Council, and event organisers marked the official launch of IRONMAN 70.3 Colombo – Presented by Port City Colombo today at Shangri-La Colombo, the Host Hotel, signalling the return of Sri Lanka’s premier endurance event and the start of the long-term #ActiveColombo initiative.

Scheduled from 19–22 February 2026, the world-class triathlon will anchor #ActiveColombo Week, combining international competition with a city-wide celebration of sport, health, and urban vitality. Highlights include the KAYA Colombo – Active Lifestyle & International Expo (19–21 Feb), the family-focused IRONKIDS Colombo (21 Feb), and the IRONMAN 70.3 Colombo triathlon (22 Feb), featuring swim, bike, and run events at Port City Colombo, the Official Venue Partner.

The event is set to welcome nearly 1,000 athletes from over 49 countries, many visiting Sri Lanka for the first time, bringing international media attention and significant economic impact across hospitality, aviation, retail, and transport. As part of the globally recognised IRONMAN® circuit, Colombo now joins iconic host cities such as Sydney, Nice, and Muscat, reinforcing its position as South Asia’s emerging endurance sports hub.

“IRONMAN 70.3 Colombo embodies the spirit of resilience and excellence,” said Rajan Thananayagam, Director of Serendib Multisport (Pvt) Ltd. “This event puts Sri Lanka on the world stage and showcases Colombo as a vibrant, welcoming destination for athletes and their families.”

The launch also introduced #ActiveColombo, a long-term initiative aimed at transforming Colombo into South Asia’s leading Active City. The programme focuses on activating everyday urban spaces through parks, waterfronts, beaches, clean streets, shaded corridors, and safe environments that encourage walking, cycling, yoga, and other outdoor activities.

“Through #ActiveColombo, we aim to inspire a more active generation while strengthening Colombo’s appeal as a globally competitive capital,” said Hanif Yusoof, Governor of the Western Province. Mayor Vraîe Cally Balthazaar added that the initiative symbolises inclusive growth, promoting healthier streets, greener corridors, and vibrant public spaces for residents and visitors alike.

With signature policies such as the “Every Active Street is a Shaded Street” Shade the Road initiative, Colombo aims to combine urban health, economic growth, and international sports tourism. Experts say cities that invest in active lifestyles see 10–20% reductions in long-term healthcare costs, safer streets, and higher visitor spending.

By linking IRONMAN 70.3 Colombo with #ActiveColombo, organisers hope to position the city as a healthier home for citizens, a premier destination for high-value tourists, and a credible host for global sporting and lifestyle events, cementing Colombo’s reputation as South Asia’s Active Capital.