Business
Monaragala wilting under the scorching impact of climate change
Sri Lanka’s agricultural backbone, the Monaragala District, is buckling under the weight of climate change, according to the Centre for Environmental Justice (CEJ). Executive Director, Dilena Pathragoda, speaking to The Island Financial Review said that their study outlines a stark warning that the district’s economic survival is in grave danger unless urgent action is taken.
Speaking on the findings of a new study, he stated, “The impacts of climate change are no longer distant predictions. They are happening here and now; devastating crops, livelihoods and the economic lifeblood of Monaragala.”
The report paints a worrying picture. Monaragala, traditionally a region reliant on rice, sugarcane and seasonal crops, is seeing shifts in temperature and rainfall that severely disrupt agricultural activities. The district’s average temperature has already risen by one degree Celsius over the past four decades, a trend that is expected to accelerate. Future climate projections suggest that, without substantial mitigation efforts, the region could experience temperature increases that make traditional farming almost impossible during key growing seasons.
Rainfall, once predictable and sufficient to sustain farming cycles, is becoming increasingly erratic. Extended dry spells and unseasonal rains are throwing planting schedules into chaos. The report notes that the first inter-monsoon and Northeast monsoon periods, critical to both paddy and seasonal crop cultivation, are seeing decreased rainfall in key areas. This reduction is contributing to an alarming depletion of groundwater and reservoir levels, threatening both crop irrigation and drinking water supplies.
Pathragoda emphasized that the economic consequences of these changes are already being felt. Farmers, particularly in areas like Siyambalanduwa and Buttala, are struggling to maintain their livelihoods. Loss of crops not only reduces household incomes but also increases food insecurity and triggers wider economic instability. With agriculture employing a significant majority of Monaragala’s working population, the ripple effects of climate failures are profound, reaching into every sector from local markets to transportation and small industries.
Compounding the issue is the poor state of local irrigation systems. According to the study, many of the district’s small and medium-scale tanks, once critical sources of irrigation, have been abandoned or fallen into disrepair. Water shortages have led to fierce competition among farmers and the need to adopt costly alternatives, such as deep-well pumping systems, is pushing many into debt. Meanwhile, the lack of access to drought-resistant crop varieties and modern water conservation technologies is leaving the majority of smallholder farmers dangerously exposed.
The Centre for Environmental Justice is calling for an immediate, coordinated response. Pathragoda insists that restoration of water storage infrastructure, adoption of climate-resilient agriculture techniques and the empowerment of local farming communities must become national priorities. He pointed out that the survival of Monaragala’s economy, and indeed its social stability, depends on whether these adaptation measures are rolled out quickly and effectively.
“The time for abstract discussions is over,” Pathragoda said. “We must bring national policies down to the village level, equipping farmers with real tools to adapt and survive. Otherwise, we risk witnessing an irreversible collapse not only of livelihoods but of entire communities.”
The situation in Monaragala serves as a grim warning for other districts in Sri Lanka. Without decisive action, the economic heart of rural Sri Lanka could wither under the harsh new realities of a changing climate, leaving devastation in its wake.
By Ifham Nizam
Business
GDP data reaffirms persistent asymmetry of Sri Lanka’s provincial economy
Western Province maintains its dominant position, accounting for 42.4% of nominal GDP
The 2024 provincial GDP data reaffirms the profound and enduring structural asymmetry in Sri Lanka’s economic geography. The Western Province continues to function as the nation’s overwhelming economic core, while the second and third runners-up, the North Western and Central Provinces respectively, operate on a markedly different scale and sectoral foundation.
The Western Province maintains its dominant position, accounting for 42.4% of the country’s nominal GDP. This preeminence is rooted in its commanding role across the high-value Services and Industry sectors, where it contributes 44.5% and 47.6% of national output, respectively. Its economy is distinctively modern, with a scant 2.3% reliance on agriculture and over 98% of its output derived from industry and services. This concentration of finance, trade, administration, and manufacturing creates an unmatched gravitational pull for investment and talent.
In stark contrast, the combined economic share of the North Western (11.5%) and Central (10.7%) Provinces is just over half that of the Western Province alone. Their paths to relevance are fundamentally different. The North Western Province has solidified its role as the nation’s agricultural heartland, contributing a full 20.0% of national agricultural activity. It also holds a significant, though secondary, position in industry at 12.0%. Its internal economic composition is more balanced across sectors than the west, with a notable reliance on industry (29.1% of its own GDP) alongside agriculture.
The Central Province, meanwhile, presents a more services-oriented profile among the runners-up, contributing 10.7% to the national services total. It also holds important shares in agriculture (13.9%) and industry (9.6%). Internally, its economy mirrors the national structure most closely among major provinces, with services constituting about 63% of its output. This suggests a diversified regional economy centered on urban hubs like Kandy, but one that lacks the concentrated high-end service power of Colombo.
The comparative analysis reveals a clear hierarchy. The Western Province is the integrated, metropolitan driver of the modern economy. The North Western Province serves as a vital agro-industrial base, and the Central Province as a diversified regional center. Despite a noted increase in the combined share of the other provinces, the gap remains vast. The economic landscape is thus characterized not by convergence, but by a persistent and specialized asymmetry, where the runners-up support the national economy through different, but essential, sectoral strengths, all while operating in the long shadow of the western province.
by Sanath Nanayakkare
Business
Sri Lanka Insurance supports 1,000 families in flood-affected areas
Sri Lanka Insurance Life and Sri Lanka Insurance General, in collaboration with the National Disaster Relief Services Centre (NDRSC), extended vital assistance to 1,000 families affected by the recent ‘Ditwah’ cyclone. The relief initiative was carried out in two phases on 30th November and 2nd December 2025, reflecting the company’s continued commitment to supporting communities in times of distress.
Dry ration packs were distributed through the NDRSC to the Maharagama Urban Council and the Divulapitiya Pradeshiya Sabha, ensuring that aid reached the most affected households swiftly and efficiently. Both distribution programmes were held with the participation of local authorities and the management teams of SLIC Life and SLIC General, further strengthening the company’s close partnership with the communities it serves.
Speaking on the initiative, Chairman of Sri Lanka Insurance, Nusith Kumaaratunga, stated; “Sri Lanka Insurance has always placed community wellbeing at the heart of its purpose. In difficult times such as these, it is our responsibility to stand with the families who have been affected and offer meaningful support. This relief effort reflects our ongoing commitment to uplift communities and reinforces our role as a trusted national insurer focused on protection, care, and compassion.”
In addition to the relief programme, Sri Lanka Insurance has implemented extended operating hours at selected SLIC General branches in the affected areas to ensure uninterrupted service. Claims, customer care teams, and branch staff are working beyond regular hours to provide prompt assistance to policyholders impacted by the severe weather conditions.
Sri Lanka Insurance remains dedicated to safeguarding its customers and supporting communities across the nation, reaffirming its longstanding promise of protection, stability, and service excellence.
Business
Jaffna Hindu College wins regional AIA Healthiest Schools award
Jaffna Hindu College was named as one of the winners at the regional award ceremony of the prestigious AIA Healthiest Schools Competition, a flagship initiative by AIA Group aimed at promoting healthier habits among students across Asia-Pacific region through innovative school-based projects. The competition, which drew a record number of entries from eight regional markets, recognises schools that implement innovative and impactful initiatives in the areas of healthy eating, active living, mental wellbeing, and sustainability. Jaffna Hindu College stood out in the Active Lifestyles Award Category for its creative and community-focused project that introduced a bicycle rental system, ensuring greater access to physical activity for all students and encouraging healthier lifestyles across the region.
The winners of AIA Healthiest Schools programme were honoured at a vibrant regional awards ceremony in Da Nang, Vietnam, where the prize money was awarded to the respective schools to support the ongoing health and wellbeing initiatives.
The Cycling Club was introduced to make physical activity accessible and enjoyable for all students. The club introduced a bicycle rental system, managed via a custom software platform, ensuring equitable access regardless of financial background. Students participated in a cycle parade and three themed challenges focused on endurance, speed, and teamwork. The initiative quickly became popular, engaging over 100 students and receiving enthusiastic support from teachers, parents, and local businesses. Experienced cyclists from the community volunteered as coaches, while cycling organisations provided safety training and route planning.
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