Business

Building Sri Lanka’s economic future through smarter cities

Published

3 months ago

2025/11/7

Each year on November 8, planners around the world celebrate World Town Planning Day—a moment to reflect on how planning can build fairer, greener, and more prosperous societies. The 2025 theme, “With Planning We Can!”, reminds us that planning is not just about regulating land use—it is about shaping the destiny of nations.

In Sri Lanka, urbanization is one of the most powerful forces defining our development pathway. Yet, over the decades, urban growth has remained uneven—concentrated in a few regions while vast areas with great potential, from the North to the East and from Uva to the South, remain underdeveloped.

To achieve true national prosperity, Sri Lanka needs a comprehensive, balanced, and inclusive National Urban Development Policy—one that integrates all provinces, strengthens regional economies, and ensures that every city, town, and village contributes to a shared national vision.

Because with planning, we can build a future where every region matters.

Urbanization is often a mirror of economic transformation. Countries such as Singapore, South Korea, and Malaysia used planning-led urban growth to accelerate their economies. Sri Lanka, however, continues to experience slow and spatially fragmented urbanization.

While the official urbanization rate stands at around 19%, the reality is far more complex. When peri-urban and functionally urban regions are included, nearly half the population already lives in areas economically tied to cities. Yet much of this growth is unplanned—spreading linearly along roads and lacking efficient infrastructure.

This has resulted in congestion, high service delivery costs, and widening disparities between regions. Western Province, with 28% of the population, contributes nearly 44% of GDP. Meanwhile, provinces like the Northern, Eastern, and Uva—rich in resources and human potential—remain underutilized.

To correct this imbalance, Sri Lanka’s urbanization must be guided, strategic, and regionally balanced.

Sri Lanka’s settlement pattern is diverse. The country is composed of:

· Core Urban Populations – Residents of municipal and urban councils.

· Suburban and Fringe Settlements

– Areas around main cities with growing housing and employment links.

· Peri-Urban Populations

– People living on the edges of rural and urban zones, economically tied to nearby towns.

· Small and Emerging Growth Centers

– Towns that provide services to rural hinterlands but lack urban-scale infrastructure.

From Jaffna to Galle, Kandy to Trincomalee, and Kurunegala to Badulla—these settlement types coexist, but not always in coordination. A new approach must weave them together into a single national system of Functional Urban Areas (FUAs)—connected by economy, mobility, and governance.

Sri Lanka’s development challenge is not lack of talent or resources—it is unequal spatial development.

· Western Province dominates economically, yet faces congestion, high land costs, and overuse of infrastructure.

· Northern and Eastern Provinces

have vast land, skilled populations, and coastal trade potential, yet remain under-industrialized.

· Central and Uva Regions

possess rich natural and cultural assets that can drive sustainable tourism and agro-industries.

· Southern and North Western Regions

hold strong manufacturing and fisheries potential but require better connectivity.

Balanced national development means every province becomes part of the growth story. The future must not be a competition between regions, but a network of interconnected, complementary city regions—each contributing uniquely to Sri Lanka’s prosperity.

To manage growth wisely, Sri Lanka must adopt a structured, forward-looking framework. The National Urban Development Policy envisions a system of Livable Cities 2060, based on three guiding principles:

· Logical Urbanization – Guiding population and investment toward areas where infrastructure, employment, and services coexist efficiently.

· Functional Urban Areas (FUAs)

– Recognizing urban influence by function, not administrative limits.

· Livable Cities 2060

– Compact, green, inclusive, and resilient urban regions ensuring quality of life for all.

Vision: Livable Cities 2060

By 2060, Sri Lanka will feature a balanced network of compact, climate-ready, and well-connected urban regions that support equitable economic growth and a high standard of living.

Key Targets:

· 60% of population in official urban areas by 2060

· Less than 20% of land urbanized

· 30% reduction in commuting time by 2045

· 80% of residents within 800m of public transport by 2050

· Net-zero municipal emissions by 2060

Ten Strategic Pillars

· Urban Space

– Compact land use, vertical development, and function-based city classification.

· Urban Population

– Skilled, inclusive, and civically active communities.

· Urban Lands

– Urban land banks, zoning reform, and land value capture.

· Urban Economy

– Industrial diversification, regional innovation hubs, and SME promotion.

· Urban Food Security

– Protect peri-urban agriculture and encourage local food systems.

· Urban Housing

– Affordable, disaster-resilient, mixed-income housing integrated with transit.

· Urban Safety

– Climate-resilient, crime-free, and disaster-ready cities.

· Urban Mobility

– Smart transport, rail integration, and non-motorized connectivity.

· Urban Environment

– Blue–green networks, circular economy, and renewable energy.

· Planning & Governance

– Evidence-based decision-making, institutional reform with favorable laws, and professional capacity building.

Island wide Transformative Impact

If implemented consistently, this policy can deliver:

· Reduced regional disparities through balanced investment

· Economic diversification

across all provinces

· Efficient urban infrastructure

and reduced congestion

· Climate-smart cities

ready for future challenges

· Empowered local governments

and professional planning systems

· Higher national productivity

through spatial efficiency

As we commemorate World Town Planning Day 2025, Sri Lanka stands at a turning point. The next phase of national growth must be planned, inclusive, and regionally balanced.

From Colombo to Jaffna, from Kandy to Batticaloa, from Galle to Anuradhapura—each region has a vital role to play in shaping our collective future.

A well-crafted National Urban Development Policy can bridge regional divides, modernize our cities, and ensure prosperity reaches every community.

Because ultimately, with planning, we can build one Sri Lanka—united in vision, diverse in strength, and equal in opportunity.

By Y. A. G. K. Gunathilake
President Elect, ITPSL
Director, Western Province, Urban Development Authority

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Business

GREAT 2025–2030: Sri Lanka’s Green ambition meets a grid reality check

Published

21 hours ago

2026/02/7

Thilina Walpola

Sri Lanka’s Renewable Energy Project Development Plan, branded GREAT 2025–2030 (Green Energy Acceleration Targets), reads like a confident pivot toward a cleaner, cheaper power system. With more than 2,600 MW of new renewable capacity planned—dominated by solar and wind—and a strong push on storage and grid stabilisation, the strategy signals intent. Yet beneath the headline numbers lies a harder business truth: generation is racing ahead of the grid, and unless infrastructure and control catch up fast, value will leak from an otherwise compelling transition.

At the core of GREAT is scale. Solar leads with 1,571 MW across multiple zones, while wind contributes 1,004 MW, primarily from Mannar, Kilinochchi and the North-Western belt.

Smaller but steady additions are planned in mini-hydro (51 MW) and biomass (38 MW). On paper, the mix lowers marginal costs, cuts imports, and insulates the economy from fuel price shocks—outcomes financiers and policymakers both welcome.

But a senior retired electrical engineer, who spent decades inside Sri Lanka’s power system, cautions that capacity alone doesn’t create reliability—or returns.

“We are adding megawatts faster than we are adding visibility and control,” he said. “Rooftop solar has already exceeded 1,350 MW, much of it invisible to operators. From a grid perspective, that is unmanaged generation, and unmanaged generation is risk.”

The business implications are immediate. Transmission bottlenecks, particularly delays in 220 kV and 400 kV lines, are constraining renewable evacuation. Projects commissioned on time can still face curtailment, eroding project IRRs and shaking investor confidence.

At the same time, electricity demand has softened amid economic pressures, compressing the system’s ability to absorb intermittent power—especially on Sundays and holidays, when demand dips but solar output peaks.

“Low demand days are now the stress test,” the engineer noted. “Without storage and grid-forming assets, you’re forced to back down renewables or keep thermal units running for stability. Both options cost money.”

GREAT attempts to address this with 650 MW / 2,250 MWh of Battery Energy Storage Systems (BESS) and 600 MW of pumped storage at Maha Oya by 2034, alongside synchronous condensers to maintain inertia. These are not optional add-ons; they are value enablers. Storage smooths volatility, captures excess midday solar, and shifts energy to peak hours—turning stranded electrons into bankable revenue.

Yet timing matters. Storage, controls, and transmission must arrive before or with new generation. Otherwise, developers face curtailment risk, lenders price in uncertainty, and tariffs fail to fall as promised.

The plan’s institutional fixes are equally commercial. A Renewable Energy Control Desk (from 2026), Distribution Control Centers in high rooftop solar areas, smart meter mandates, and grid digitalisation are designed to restore operational visibility. Time-of-use tariffs, paired with daytime EV charging and industrial load-shifting, aim to reshape demand—turning a system problem into a market opportunity.

“Tariffs are signals,” the engineer said. “If you want power used at noon, price it right. If EVs and factories move load to the day, solar becomes an asset, not a headache.”

For investors, the message is nuanced but clear. Sri Lanka’s renewable pipeline is real and sizeable.

The policy direction favours clean energy, and the cost curve is attractive. However, project bankability will increasingly hinge on grid-readiness—access to storage, firm evacuation paths, and participation in smart, controllable networks.

For policymakers, GREAT’s success will be measured not by megawatts announced, but by megawatt-hours delivered reliably and profitably. Accelerating transmission approvals, fast-tracking BESS procurement, and enforcing smart metering for distributed generation are the difference between a virtuous transition and a congested one.

“The transition is inevitable,” the engineer concluded.

“The question is whether we do it cheaply and safely, or pay twice—once for generation, and again for the fixes we delayed.”

GREAT 2025–2030 sets Sri Lanka on the right path. The business case now depends on execution—where grids, markets, and management must move at the same speed as ambition, he added.

By Ifham Nizam

Business

Zone24x7 enters 2026 with strong momentum, reinforcing its role as an enterprise AI and automation partner

Published

21 hours ago

2026/02/7

Thilina Walpola

Zone24x7 team

Zone24x7 concluded 2025 with significant industry recognition, securing seven awards across three leading technology competitions—marking one of the strongest years in the company’s 22-year journey. The awards recognized the Industrial Vending Machine solution developed for a client in Australia. It earned both national and regional honors, including Second Runner-up at the Asia Pacific ICT Alliance (APICTA) Awards 2025.

More than accolades, the recognition showcases Zone24x7’s ability to deliver practical, enterprise-ready solutions that create measurable business impact. Competing against leading technology companies across the Asia Pacific region, the wins highlight the company’s growing global footprint and its focus on translating innovation into operational value for customers.

Neschae Fernando, CEO of Zone24x7

Zone24x7’s award run began at the SLASSCOM National Ingenuity Awards 2025, where the company secured National Winner for Best Innovative Product in Manufacturing, National 1st Runner-up for Best Innovative Product (General), and two Provincial Winner titles in the Western Province. This success continued at the National ICT Awards (NBQSA 2025), with Gold in Manufacturing, Engineering & Construction, and the IoT Technology of the Year Award.

“2025 validated our approach of building technology around real business needs,” said Neschae Fernando, CEO of Zone24x7. “As we move into 2026, our focus is on helping enterprises improve productivity, visibility, and decision-making by applying AI, automation, and connected systems in ways that go far beyond standalone tools or chat-based solutions.”

Headquartered in the United States with a world-class technology hub in Sri Lanka, Zone24x7 serves over 50 enterprise customers across multiple industries. The company specializes in integrating artificial intelligence, IoT, and enterprise platforms to solve complex operational challenges at scale.

Its portfolio includes Generative AI capabilities that enhance workflows, system intelligence, and human productivity; AI-powered automation platforms that connect digital and physical data sources; and a Cognitive Vision Analytics Platform that delivers real-time insights from video and image data. In addition, Zone24x7 provides RFID-enabled solutions and Warehouse Management Systems that improve inventory accuracy, asset visibility, and supply chain performance.

“The value we bring lies in how we combine hardware, software, and AI into cohesive solutions that fit seamlessly into existing enterprise environments,” said Vipula Liyanaarachchi, General Manager at Zone24x7. “As organisations look ahead to 2026, we are focused on helping them scale efficiently, modernise operations, and unlock greater value from their data without disruption.”

The award-winning Industrial Vending Machine reflects this approach, integrating IoT hardware, intelligent software, and analytics to automate inventory control and enhance efficiency in manufacturing and industrial settings. Rather than being a standalone product, it demonstrates how Zone24x7 partners with clients to design solutions aligned to specific operational goals.

With more than two decades of experience and a strong research and development foundation, Zone24x7 is now investing further in advanced AI-driven automation, intelligent analytics, and system-agnostic architectures. As businesses navigate rapid technological change, the company is positioning itself as a long-term partner—helping enterprises adopt AI responsibly, enhance workforce productivity, and build resilient operations into 2026 and beyond.

Business

India’s Mazagon Dock Shipbuilders makes mandatory offer to buy remaining shares of Colombo Dockyard

Published

21 hours ago

2026/02/7

Thilina Walpola

India’s Mazagon Dock Shipbuilders Limited has made a mandatory offer to buy the remaining shares of Colombo Dockyard at Rs 40 each, following a 41.73 percent stake acquisition last month.The mandatory offer targets 58.27 percent of the company.

At the recent rights issue, Mazagon Dock Shipbuilders bought 164,916,229 ordinary shares of Colombo Dockyard from the unsubscribed rights entitlement of previous stakeholder Onomichi Dockyard Company.

Mazagon paid Rs 40 per share amounting to a total Rs 6,596,649,160 .

Both indices moved upwards. The All Share Price Index went up by 67.5 points, while the S and P SL20 rose by 23.57 points. Turnover stood at Rs 9.1 billion with 16 crossings.

Top seven crossings were reported as follows: Commercial Bank 9.7 million shares crossed to the tune of Rs 1.2 billion and its shares traded at Rs 224.50, TJ Lanka 14.3 million shares crossed to the tune of Rs 549.7 million; its shares sold at Rs 38.50, Renuka Hotels one million shares crossed to the tune of Rs 250 million; its shares sold at Rs 250, Melstacorp one million shares crossed to the tune of Rs 178 million; its shares fetched Rs 179, Sampath Bank 930,000 shares crossed for Rs 145 million and its shares traded at Rs 150, Sierra Cables two million shares crossed for Rs 74 million; its shares sold at Rs 37 and Lanka Milk Food one million shares crossed for Rs 71 million; its shares fetched Rs 71.

In the retail market companies that mainly contributed to the turnover were; Colombo Dockyard Rs 514 million (3.3 million shares traded), Ceylon Land Equity Rs 349 million (15.6 million shares traded), Sierra Cables Rs 339 million (1.4 million shares traded), Commercial Bank Rs 307 million (1.4 million shares traded), TJ Lanka Rs 247 million (6.5 million shares traded), Luminex Rs 232 million (19.6 million shares traded) and Renuka Foods Rs 180 million (11 million shares traded). During the day 311 million share volumes changed hands in 50661 transactions.

It is said that the market showed mixed reactions. The banking sector actively participated, especially Commercial Bank. The manufacturing sector also performed well.

Yesterday the rupee was quoted at Rs 309.30/40 to the US dollar in the spot market, stronger from Rs 309.45/50 the previous day, while bond yields continued to edge lower on the the mid- to long end of the yield curve, dealers said.

A bond maturing on 15.06.2029 was quoted at 9.45/50 percent.

A bond maturing on 15.09.2029 was quoted at 9.50/55 percent.

A bond maturing on 15.12.2029 was quoted at 9.52/58 percent, down from 9.55/60 percent.

A bond maturing on 01.07.2030 was quoted at 9.68/71 percent.

A bond maturing on 01.10.2032 was quoted at 10.21/24 percent, down from 10.23/25 percent.

A bond maturing on 01.06.2033 was quoted at 10.55/60 percent, down from 10.57/60 percent.

A bond maturing on 15.06.2034 was quoted at 10.77/80 percent.

A bond maturing on 15.06.2035 was quoted at 10.80/86 percent, down from 10.82/87 percent

By Hiran H Senewiratne