Business

Lessons for Sri Lanka from Korea’s experience in innovation

Published

2 years ago

2024/08/27

L-R, Executive Director of LKI, Amb. Ravinatha Aryasinha, ambassador of Korea to Sri Lanka, Miyon Lee, Country Representative, The Asia Foundation Korea Office, Dr. Kyungjin Song.

The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), in collaboration with the embassy of Republic of Korea in Sri Lanka hosted a seminar titled, “Economic Security in the Indian Ocean Region; Prospects for Collaboration between Sri Lanka and Republic of Korea” on August 21. It was attended by ambassadors and diplomats, representatives of international organisations, senior officials of the Ministry of Foreign Affairs and other relevant ministries and agencies, business persons, leading researchers and university students.

Extracts of an LKI press release: ‘Welcoming the gathering, Executive Director of the LKI, Ambassador Ravinatha Aryasinha, said the main purpose of the seminar was to examine the lessons Sri Lanka could learn from ROK’s experience in science and technological innovation. Setting the context for the event, Ambassador Aryasinha highlighted the current shortcomings in the country’s R&D efforts noting that the country’s annual R&D expenditure stands at a low 0.12% of GDP. He hoped that the discussion would address this lacuna and suggest tangible proposals on how to cultivate a more innovative society that values research and development and specific projects that can be operationalized in this regard.

‘Miyon Lee, Ambassador of Korea in her opening remarks highlighted Korea’s historical and ongoing efforts in transforming its economy globally, with a focus on economic security to protect supply chains and ensure technological leadership. She identified two critical elements for achieving this transformation: ‘Intellectual Property Rights (IPR) protection’ and the development of an ‘innovation ecosystem’. Ambassador Lee also highlighted the relevance of this discussion for contemporary Sri Lanka, which is emerging from an economic crisis and is seeking to adopt export-oriented policies and attract more Foreign Direct Investments (FDI). She outlined three key aspects of Korea’s economic transformation. First, Korea has greatly benefited from the global liberal market system, rule of law, and democratic values. Second, the private sector and civil society play a crucial role in driving innovation and resilience. Third, effective political leadership and bureaucratic efficiency are essential for implementing necessary policies. She also emphasized Korea’s vision for a free, peaceful, and prosperous Indo-Pacific region.

‘Dr. Kyungjin Song, Country Representative of the Asia Foundation Korea Office, led the first session of the seminar. Her presentation focused on the evolution of Korean economic statecraft over the past sixty years and explored potential future collaborations between Sri Lanka and South Korea. She highlighted three key elements of Korea’s economic development: institution building and capacity building, innovation, and entrepreneurship.

‘Dr. Song noted that in 1962, when Korea launched its first five-year economic development plan, its major exports included iron ore, tungsten, anthracite, raw silk, and squid. By 2023, ROK’s primary exports had shifted to semiconductors, automobiles, petrochemicals, synthetic resin, auto parts, and ship building. In her presentation, Dr. Song highlighted a crucial moment in Korea’s economic history. She described how, during the late 1960s and early 1970s, as many Korean students were emigrating to the U.S. for higher education, ROK made a strategic move. The establishment of the Korea Development Institute (KDI) was a key initiative by the Korean government to harness global talent.

‘Dr. Song explained that KDI’s leadership, under the president’s direction, traveled abroad to engage with these scholars, experts, and bright minds, persuading them to return to ROK to contribute to ROK’s economic development. This played a crucial role in Korea’s rapid economic transformation. Dr. Song also shared valuable lessons from the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis, and proposed potential areas for collaboration between Sri Lanka and the Republic of Korea. She suggested opportunities in renewable energy investments and noted that Sri Lanka’s graphite, an essential raw material for South Korea’s semiconductor, battery, and automobile industries, could be a valuable resource for future cooperation.

‘The panel discussion that followed was moderated by Prof. Ajith De Alwis, Chief Innovation Officer of the National Innovation Agency (NIA) and Senior Professor of Chemical and Process Engineering, University of Moratuwa. The four member panel included Dr. Kyungjin Song – Country Representative of the Asia Foundation Korea Office, Prof. (Dr.) Nishantha Sampath Punchihewa – Dean of the Faculty of Law, University of Colombo and former member of the Intellectual Property Advisory Commission, K.A.Vimalenthirarajah – Director General of the Department of Trade and Investment Policies, Ministry of Finance, and Anushka Wijesinha – Co-founder/Director of Centre for a Smart Future.

‘The question and answer session that followed centered on several key points: the need for supportive policies to boost business activity in the country, leveraging areas where Sri Lanka has competitive advantages and core competencies, such as traditional knowledge, that require minimal investment. The discussion also highlighted the importance of the private sector investing in R&D rather than waiting for government action. Encouraging the diaspora community to seasonally or remotely contribute to Sri Lanka’s economic processes was suggested as a way to address brain drain. Additionally, the government’s strategy of diversifying markets from western to eastern regions while maintaining western market connections was examined. The session also emphasized the need for consistent policy focus, strong political leadership to promote innovation, and seeking investments in R&D in moving up the value chain in existing sectors rather than pursuing entirely new ones.’

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Business

Trust, security and collaboration seen as pillars of growth in digital payments

Published

17 hours ago

2026/07/21

Thilina Walpola

Experts at the Visa-led forum

Visa successfully hosted the Visa Sri Lanka Cybersecurity Conclave 2026 on 25 June 2026, convening leaders from the banking sector, Government, regulators and industry bodies to foster dialogue on evolving cyber threat landscape and the collective action needed to strengthen cyber resilience across Sri Lanka’s digital economy.

As digital payments continue to expand, cybersecurity remains critical to sustaining trust, protecting consumers and businesses, and supporting a more inclusive digital economy. The conclave served as a focused platform for industry dialogue on emerging cyber threats, fraud prevention, regulatory readiness and public-private collaboration in safeguarding consumers, businesses and the wider financial ecosystem.

The event featured expert-led sessions by Visa leaders, covering Cyber Threat landscape, AI-driven Cybersecurity, Visa Cyber Solutions and Advisory, Risk landscape and AI-powered Fraud Prevention introducing Featurespace. Discussions underscored the increasing sophistication of cyberattacks and fraud patterns, particularly as AI-enabled threats create new challenges for financial institutions, regulators, and businesses.

A senior-level panel discussion brought together Sirikumara Kudagama, Deputy Governor of the Central Bank of Sri Lanka; Waruna Dhanapala, Secretary to the Ministry of Digital Economy; Brigadier K.V.P. Dhammika, Director of Cyber Command and Information Warfare Centre; Mr. Kapila Hettihamu, Chief Risk Officer of Commercial Bank of Ceylon; and Avanthi Colombage, Country Manager, Sri Lanka and Maldives, Visa. The panel delved on Sri Lanka’s changing cyber risk environment and the need for stronger preparedness across the financial sector, with emphasis on proactive threat intelligence, real-time response capabilities, stronger information sharing, capacity building, robust regulatory frameworks and the adoption of advanced security solutions to help institutions stay ahead of emerging risks.

Waruna Dhanapala, Secretary to the Ministry of Digital Economy, said, “As Sri Lanka advances its digital transformation, cybersecurity is a national priority and a critical enabler of trust in the digital economy. The expansion of digital payments and technology-enabled commerce presents significant opportunities, but also requires coordinated action, strong safeguards and trusted partnerships. Initiatives such as the Visa Sri Lanka Cybersecurity Conclave 2026 are valuable in bringing together government, regulators, financial institutions and industry leaders to exchange insights, address emerging risks and strengthen collective resilience. We value the role that global payments leaders such as Visa continue to play in supporting Sri Lanka’s digital ecosystem through expertise, innovation and collaboration. This conclave was a timely effort to reinforce the shared responsibility needed to build a secure, resilient and inclusive digital economy for the country.”

Commenting on the success of the conclave, Avanthi Colombage, Country Manager, Sri Lanka and Maldives, Visa, said, “As Sri Lanka’s digital economy continues to grow, cybersecurity is fundamental to building trust in digital payments. At Visa, we are committed to working closely with regulators, financial institutions and ecosystem partners to support safer, more resilient digital commerce for consumers and businesses. Strengthening cyber resilience is not the responsibility of one institution alone. It requires collaboration, preparedness and continued investment across the ecosystem. Through initiatives such as the Visa Sri Lanka Cybersecurity Conclave 2026, Visa continues to support Sri Lanka’s financial ecosystem with global expertise, practical insights and security-led solutions that help protect the future of digital commerce in Sri Lanka.”

Business

First Capital maintains Bond Yield Outlook for 2026, identifies market recovery potential in 2027

Published

17 hours ago

2026/07/21

Thilina Walpola

First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a key player in Sri Lanka’s capital markets landscape, has maintained its outlook for Sri Lanka’s fixed income and equity markets, forecasting stable bond yields through 2026 while identifying potential opportunities emerging in 2027 as economic conditions improve.

According to the First Capital Mid-Year Outlook 2026, bond yields are expected to remain within current forecast ranges during 2026, with a 50 basis point premium introduced to the longer end of the yield curve in the first half of 2027 due to continued concerns surrounding debt sustainability and the pace of structural reforms.

First Capital expects inflation to average 6% in 2026, with recent monetary policy tightening by the Central Bank of Sri Lanka supporting inflation stability. However, the higher interest rate environment is expected to weigh on economic growth and credit expansion, creating potential room for a rate reduction during the first half of 2027.

Commenting on the outlook, Dimantha Mathew, Chief Research & Strategy Officer of First Capital Holdings PLC, said, “The recent tightening in monetary policy has helped stabilise inflation expectations, although it is expected to moderate economic momentum in the near term. We believe investors should remain positioned within shorter tenures, providing a dual opportunity with potential capital gains as yields are expected to normalise and move down towards our targeted bands, whilst attractive carry opportunities remain available for investors. While progress on reforms remains critical, improving macroeconomic stability could create favourable conditions for market recovery over the medium term.”

First Capital forecasts the Average Weighted Prime Lending Rate (AWPR) to remain between 10.0%–11.0% during the second half of 2026, before easing to 9.5%–10.5% in the first half of 2027, supported by moderating GDP and credit growth and stabilising liquidity conditions.

The Sri Lankan Rupee is expected to remain within a range of LKR 325–335 against the US Dollar during the second half of 2026, with a gradual depreciation to LKR 335–345 anticipated in the first half of 2027 as external pressures and foreign exchange dynamics evolve.

In equities, First Capital maintains its 2026 All Share Price Index (ASPI) base case fair value target of 20,500 and introduces a 2027 target of 24,500, supported by expectations of softer inflation, earnings recovery, improving liquidity and a gradual easing of monetary policy. Given the expected near-term sideways movement in the market, First Capital recommends a higher cash allocation of 50% to enable investors to capitalise on potential entry opportunities ahead of a broader recovery.

The First Capital Mid-Year Outlook 2026 reflects the institution’s continued commitment to providing research-driven market insights and supporting investors in making informed investment decisions amid Sri Lanka’s evolving economic landscape.

Business

Bourse trading plunges in the wake of continuing US-Iran hostilities

Published

17 hours ago

2026/07/21

Thilina Walpola

The CSE was trending down yesterday as external environmental issues, especially the US-Iran hostilities, continued to impact the global economy adversely.

The All Share Price Index went down by 170.60 points, while the S and P SL20 declined by 43.39 points. Turnover stood at Rs 2.63 billion with four crossings.

Turnover stood at Rs 2.63 billion with four crossings. Those crossings were: CT Holdings crossed 1.1 million shares to the tune of Rs 551 million; its shares traded at Rs 510, Cargills Ceylon 856,000 shares crossed for Rs 145 million; its shares sold at Rs 630, LMF 232 million shares crossed for Rs 232 million; its shares sold at Rs 84 and Dialog 457,000 shares crossed to the tune of Rs 20 million; its shares sold at Rs 43.

In the retail market companies that mainly contributed to the turnover were; JKH Rs 109 million (5.5 million shares traded), Haycarb Rs 93 million (535,000 shares traded), CCS Rs 60 million (447,000 shares traded), Bairaha Farm Rs 54 million (626,000 shares traded), Ambeon Capital Rs 48 million (1.6 million shares traded), LMF Rs 47 million (556,000 shares traded) and ACL Cables Rs 44 million (455,000 shares traded). During the day 56 million share volumes changed hands in 17347 transactions.

It is said that manufacturing sector counters, especially JKH, performed well. Further, beverage sector counters, especially Cargills and CCS performed significantly well.

Yesterday the rupee was quoted at Rs 336.20/30 to the US dollar in the spot market, from Rs 336.15/25 Friday, while bond yields edged up, dealers said.

The telegraphic transfer rate for the dollar was 331.80 buying, Rs 340.80 selling; the euro was 376.9467 buying, 390.8637 selling; and the pound was 445.4833 buying, 459.5289 selling.

By Hiran H. Senewiratne