Business
Building Sri Lanka’s economic future through smarter cities
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
Business
USD 50 mn battery storage investment expected to power SL’s renewable energy push
Sri Lanka has taken a major step towards modernising its power infrastructure with the arrival of the country’s first commercial-scale Battery Energy Storage System (BESS), part of a USD 50 million investment expected to transform the integration of renewable energy into the national grid.
The first shipment of battery units arrived at the Port of Colombo recently for the landmark Galle and Matara BESS projects being developed by Galilee BESS (Pvt) Ltd, a subsidiary of KHEN Energy Limited. The projects are expected to play a pivotal role in enhancing grid stability, reducing renewable energy curtailment and strengthening the country’s energy security.
The shipment comprised 25 containers, including 18 battery units weighing 42 metric tonnes each, making it one of the largest and most technically demanding renewable energy cargo movements handled in Sri Lanka to date.
Energy industry officials describe the project as a milestone investment that will help bridge one of the biggest challenges facing renewable energy development—storing electricity generated from intermittent sources such as solar and wind power for use when demand peaks.
Once operational, the BESS facilities will support the National System Operator by absorbing excess renewable energy during periods of high generation and releasing it when required, thereby improving efficiency and reliability across the power network.
The technology is being supplied by global energy storage leader Sungrow Power Supply Co., Ltd., reflecting growing international confidence in Sri Lanka’s renewable energy sector and its long-term clean energy ambitions.
Beyond its energy significance, the project also highlights the increasing scale and sophistication of infrastructure investments entering the country.
Expolanka Freight (Pvt) Ltd was entrusted with the end-to-end logistics operation, overseeing customs clearance, specialised transportation, storage, unloading and final placement of the battery units at the project sites.
Finance and Project Director Fazul Ansar said the operation required extensive engineering studies, route assessments and rigorous safety planning owing to the hazardous classification and extraordinary weight of the cargo.
Head of Project Logistics Mohamed Niyas said months of preparation had gone into route surveys, lifting studies and risk mitigation planning to ensure the successful execution of the project.
Project officials said specialised multi-axle trailers and cranes with lifting capacities ranging from 100 to 150 tonnes were deployed for the operation, while access modifications and last-mile transport solutions were implemented at both project locations.
By Ifham Nizam
Business
AI and Data Analytics Summit 2026 drives the nation’s digital future
The AI and Data Analytics Summit 2026 organised by the Sri Lanka Section of BCS, the Chartered Institute for IT was successfully held on 22nd May 2026 at Waters Edge, Colombo. The high-impact summit themed “Next Generation AI & Data Analytics: Skills & Thoughts for the Intelligent Future” brought together senior policymakers, global technology experts, industry leaders, academics, and innovators to explore how Artificial Intelligence (AI) and Data Analytics are reshaping the nation’s digital and economic future.
The event, endorsed by the Ministry of Digital Economy, was graced by Waruna Sri Dhanapala, Secretary to the Ministry of Digital Economy, who attended as the Guest of Honour, underscoring the government’s strong commitment to advancing AI adoption, digital innovation, and data-driven governance in support of Sri Lanka’s broader public sector transformation agenda. Dr. Sadeep Jayasumana, Chief Scientist at Octave, delivered the keynote address on Generative AI, sharing insights into its transformative potential.
Speaking on the significance of the summit, Prof. Lasith Gunawardena, Chairman the Sri Lanka Section of BCS, the Chartered Institute for IT noted that Artificial Intelligence and Data Analytics have become present-day enablers of innovation, economic growth, and societal progress. He emphasized that the summit was guided by BCS’s purpose of Making IT Good for Society and by the national need to bring together thought leaders, practitioners, policymakers, and industry experts to foster collaboration, knowledge sharing, and the responsible adoption of transformative technologies, thereby strengthening Sri Lanka’s digital readiness and supporting a resilient, inclusive, and globally competitive digital economy.
Ransith Fernando, Chair of the summit mentioned ” This year’s summit brought together 21 speakers who shared valuable insights, ideas, and experiences. We heard inspiring success stories, gained practical knowledge from industry practitioners, and explored strategic perspectives from business leaders. These conversations highlighted both the opportunity and the responsibility before us. While innovation is accelerating globally, Sri Lanka must align policy, talent, and industry readiness to truly operationalize AI at scale and ensure an inclusive and sustainable digital transformation.”
Deshan Liyanage, Co-Chair of the AI and Data Analytics Summit 2026 commented that this year’s summit was a fully sold-out event, reflecting the growing national momentum around Artificial Intelligence and Data Analytics in Sri Lanka. He extended heartfelt gratitude to all participants who joined and contributed to the success of the summit, as well as to the sponsors whose support made the event possible. Special appreciation was conveyed to Sysco LABS as the Strategic Partner, Linear Six as the Bronze Partner, InTalent Asia as the Resource Partner, and Motivista as the Event Partner. He also acknowledged the valuable collaboration of industry associations including SLASSCOM, FITIS, and CSSL, whose partnership helped strengthen and elevate the initiative.
Business
Eswaran Brothers empowers women through a transformative leadership journey
As part of its commitment to advancing women’s empowerment and building a stronger leadership pipeline, Eswaran Brothers Exports (EB), a leading tea manufacturer in Sri Lanka, launched its flagship women’s leadership initiative, She Transforms, a customized six-month leadership development journey. Developed with award-winning leadership expert Senela Jayasuriya and supported by Value for Women, the programme forms a key pillar of the Company’s wider gender agenda focused on leadership capacity building, inclusion and long-term institutional change.
Women make up 44% of Eswaran Brothers’ workforce, yet only 23% held senior roles at the time of an initial gender diagnostic conducted with Value for Women and supported by FMO, the Dutch Development Finance Bank. The assessment found that despite their potential, many women faced unclear career pathways and limited structural support at critical life stages.
In response, Eswaran Brothers introduced strategic mindset and policy interventions designed to remove barriers and create a more enabling environment for women to grow and lead. These efforts included mentorship opportunities, enhanced support for employees returning from maternity leave, coaching for managers, and initiatives aimed at strengthening inclusion and career progression across the organization.
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