Business
Sri Lanka could benefit from global trend towards EV use – IPS study
By Ifham Nizam
The latest publication of the Institute of Policy Studies of Sri Lanka (IPS), `Trade Wars in Electric Vehicle Supply Chains: A Win for Sri Lanka’s Graphite Industry?” indicates that Sri Lanka is poised to benefit from the global trend towards electric vehicles (EVs). Sri Lanka stands to gain by leveraging its top-quality vein graphite, crucial for EV battery manufacturing, the publication says.
Sri Lanka, renowned for its high-quality vein graphite, is poised to benefit from the increasing demand for “non-China origin” graphite, driven by the global push towards electro mobility and the US Green Industrial Policy.
The IPS publication brought out by IPS researchers, Dr Asanka Wijesinghe, Malisha Weerasinghe and Chaya Dissanayake, explores the potential for Sri Lanka to join the supply chain for Electric Vehicle (EV) battery manufacturing.
Speaking at a seminar recently at the IPS, Colombo 7, IPS Research Fellow, Dr. Asanka Wijesinghe said that Sri Lanka’s commitment to sustainability and quality standards places it strategically in the non-China graphite export market, boosted by US industrial policies favouring domestic assembly and non-China sources.
Wijesinghe said that their new study highlights Sri Lanka’s opportunity to become part of the EV battery supply chain.
The study suggests that Sri Lanka could focus on upstream activities, including exporting battery-grade graphite and anodes, and strengthen Research & Development to enhance its strategic position in the non-China graphite export sector, thus attracting investment and ensuring sustainability.
Responding to The Island Financial Review on the possibility of a Free Trade Agreement (FTA) with the US, Wijesinghe believes that a comprehensive FTA may be challenging but a limited one, in the style of the Japan-US Mineral Free Trade Agreement, will be beneficial to Sri Lanka.
“Sri Lanka will have to navigate the complex geopolitical landscape in finalizing such an agreement. On the upside, such an agreement helps value addition to Sri Lanka’s graphite within the country and via export to the US under the subsidy program proposed by the US, he added.
Dr. Wijesinghe also said that US’s strategic move to adopt a proactive green industrial policy, driven by the imperative to achieve net-zero emissions and national security concerns, presents fresh opportunities for graphite producers outside China. The recently enforced Inflation Reduction Act (IRA) plays a pivotal role in reshaping the global EV battery supply value chain by excluding China and promoting domestic assembly and manufacturing of EV components.
Key findings from the IPS study reveal that as a result of these developments, the demand for graphite, a critical component of Lithium Ion Batteries (LIBs), is set to surge. “Non-China” graphite exporters, including Madagascar, Mozambique and particularly Sri Lanka, are positioned to benefit from the re-alignment of the supply chain.
The study also focuses that the Partial Equilibrium modeling results indicate that Sri Lanka holds a strategic advantage in the emerging market. Sri Lanka’s vein graphite, known for its purity, flawless crystal structure, and strong electrical conductivity, stands out as an ideal choice for the growing global demand.
Wijesinghe also stressed that despite facing challenges in terms of cost competitiveness, Sri Lanka’s focus on sustainable practices, minimal environmental impact, and compliance with acceptable labour standards positions it as a key player in the evolving landscape of “non-China” graphite exports.
“Additionally, Sri Lanka possesses a comparative advantage in graphite production and benefits from an established mining sector with an existing consumer base. Increased demand will party help Sri Lanka by increasing the world market price of graphite in the future. However, the productivity of the mining sector needs to be increased to lower the unit cost, to benefit from the emerging global opportunities,” he added.
Business
Needs of populace hit by Cyclone Ditwah seen as waiting to be addressed
By Hiran H. Senewiratne
The government is yet to address fully the needs of the Cyclone Ditwah affected populace though one year has elapsed. The devastation cost the country more than US $ 4.1 billion, an Australia-based Chartered Engineer of Sri Lankan origin said.
‘Cyclone Ditwah affected more than 2.2 million people in 25 districts, which is considered to be one tenth of the population. However, only 39 percent of the allocated funds have been spent to date, the speaker, a one-time General Secretary of the JVP, now living in Australia Lionel Bopage said.
He made these comments at a Rotary Club Colombo South monthly meeting held at the Kingsbury Hotel, Colombo recently.
Bopage quoted from a Loughborough University research report published in February to the effect that Sri Lanka has under invested in prevention but over invested in recovery.
Bopage added: ‘The largest single economic category affected were not buildings but the agriculture sector which provides livelihoods for the majority of affected persons. Therefore agricultural livelihoods have been hit most.
‘More than 58,000 hectares of paddy lands were flooded in the Eastern districts alone, while 46 reservoirs reached critical spill level or failed outright following the disaster.
‘A rapid education sector assessment found that 1,682 schools were affected and more than 555,000 children were unable to attend schools. Further, 622 water supply schemes had been left non-functional and apart from that 11300 homes were damaged or destroyed. But reconstruction is happening at a very slow pace.
‘Tens of thousands of households in the hill country and in the East are still living in damaged properties and on unstable slopes drawing water from schemes that have not been restored.
‘ A Post Disaster Needs Assessment put the cost of resilience at US$ 3.4 billion but restoration work is happening at a slow pace even with foreign donor assistance.’
Business
WB forecast buoys bourse but weak investor participation slows momentum
By Hiran H. Senewiratne
The CSE yesterday kicked off on a positive note due to a World Bank forecast that Sri Lanka could achieve 4.4 percent economic growth this year but later lost momentum due to weak investor participation.
Amid those developments both indices moved upwards. The All Share Price Index went up by 132 points while S and P SL20 rose by 21.02 points.
Turnover stood at Rs 1.97 billion with three crossings. Those crossings were; Lanka IOC 2.7 million shares crossed to the tune of Rs 470 million; its shares traded at Rs 127, CCS 2.7 million shares crossed to the tune of Rs 315 million; its shares sold at Rs 118 and JKH five million shares crossed for Rs 91.5 million; its shares traded at Rs 18.30.
In the retail market companies that mainly contributed to the turnover were; Commercial Credit and Finance Rs 126 million (1.3 million shares traded), Lanka IOC Rs 98 million (775,000 shares traded), Asiri Surgical Hospitals Rs 77 million (7.6 million shares traded), Commercial Bank Rs 51.3 million (307,000 shares traded), Sampath Bank Rs 46 million (325,000 shares traded), HNB Rs 37 million (98000 shares traded) and Tokyo Cement Rs 31 million (393,000 shares traded). During the day 50 million share volumes changed hands in 14547 transactions.
It is said that the petroleum sector performed well, especially Lanka IOC, while in the banking sector counters, especially Commercial Bank and Sampath Bank performed well. In the manufacturing sector, JKH impressed.
TAL Lanka Hotels announced that it has scheduled an Extraordinary General Meeting on October 29 to obtain shareholder approval for a proposed Rs 1.87 billion rights issue. The proceeds will be utilized for the repayment of bank borrowings, part refurbishment of the Taj Samudra Hotel in Colombo, settlement of vendor liabilities, and general corporate requirements.
Yesterday the rupee was quoted at Rs 330.95/331.05 to the US dollar in the spot market, weaker from Rs 330.85/95 the previous day, while bond yields were quoted broadly steady, dealers said.
Business
Huawei continues to showcase practical AI applications at Sri Lanka AI Week 2026
Sri Lanka AI Week 2026 continued into its second day bringing together government, industry, academia and technology partners to explore practical applications of artificial intelligence. As the AI Technology Partner for the second consecutive year, Huawei showcased 18 use cases spanning government, education, finance, industry, green energy and everyday life, demonstrating how AI can be applied to real-world needs.
Prime Minister Dr. Harini Amarasuriya visited the Huawei exhibition together with officials from the Ministry of Education, Higher Education and Vocational Education, experiencing the Smart Classroom, AI in Education and MindGraph by Beijing Normal University demonstrations. The Smart Classroom demostration highlighted how connected technologies can bring teachers and students in different locations into a shared learning environment, while the AI in Education showcase demonstrated how AI can support teachers, enhance learning and enable more personalised education. The Prime Minister praised the efforts of the Ministry of Education, Higher Education and Vocational Education, Huawei and their partners to demonstrate practical applications of AI in education, noting the role of technology in supporting teachers, expanding learning opportunities, and advancing a more inclusive, equitable and future-ready education system.
Later in the day, Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala, and Chinese Ambassador Wei Huaxiang visited the Huawei exhibition and explored the AI Hands-On Classroom AI Empowering Industry, AI in Education and Smart Classroom demonstrations. Deputy Minister Weeraratne praised Huawei’s practical approach to showcasing AI applications, noting their relevance to Sri Lanka’s digital transformation across education, industry and skills development. The engagement also extended across the wider AI ecosystem, with industry professionals, technology partners, academics and other visitors engaging with the demonstrations and expressing appreciation for Huawei’s practical approach to applying AI across different areas of society and the economy.
Daniel Wu, CEO of Huawei Sri Lanka, said that Huawei will continue bringing global experience, technology and ecosystem resources to Sri Lanka, while working side by side with local partners to build local capabilities, develop local talent and create real value for the country. “I believe that by working together, we can make AI not only more intelligent, but also more local, more inclusive, and more meaningful for everyone,” he said.
-
Editorial6 days agoColombo Port drug bust: The plot thickens
-
Features4 days agoThe first woman in the foreign service or Ceylon Overseas Service it was then called
-
Editorial5 days agoFuelling discontent and protest
-
News3 days agoGeneva takes up Sallay’s case and govt. ignores opportunity to answer accusations
-
Latest News5 days agoTharindu Rathnayake, bowlers secure Asian Games Bronze for Sri Lanka
-
Foreign News5 days agoTen injured after car crashes into rugby supporters in Australia
-
Features3 days agoSri Lanka Cricket Bill: Governance reform is not yet a cricket strategy
-
News4 days agoNearly 20 Iranian tankers stranded off Lanka amid US sanctions
