Business
Ceylon Chamber urges govt to convert fiscal gains into productive investment
The Ceylon Chamber of Commerce has acknowledged the government’s recent fiscal gains but is urging a strategic shift of these surpluses into productive public investment to secure long-term growth.
In its review of the National Budget 2026, the Chamber endorsed the government’s “clear trajectory” of fiscal consolidation and disciplined debt management, noting this consistency is crucial for Sri Lanka’s ongoing economic recovery.
However, with the initial post-crisis consumption boom now moderating, the Chamber stressed that the government must pivot from consolidation to investment. It identified targeted capital expenditure in infrastructure, energy, tourism, and digital services as the potential new engines needed to drive the economy forward.
Significantly, the Chamber revealed that 18 of its policy proposals were incorporated into the budget, which include:
Trade: Developing a Trade National Single Window and a new Tariff Policy to phase out para-tariffs.
Investment: Implementing a Public-Private Partnership (PPP) framework, a digital single window for approvals, and a new residence visa scheme for investors.
Digital Economy: Plans to issue the first Digital ID in 2026, roll out 5G licensing, and eliminate service fees for online government payments.
Land & Tourism: Advancing a National Land Use Plan and resuming the Bandaranaike International Airport (BIA) expansion project.
Despite these welcomed inclusions, the Chamber highlighted three critical areas requiring greater focus:
Bridging the Implementation Gap: The Chamber warned that execution with clear timelines is the ultimate test, emphasizing that promises on the Trade Single Window and PPP laws must be delivered on time.
Strengthening Tax Administration: Improving compliance and widening the tax net through better enforcement was deemed more critical than further rate increases.
Improving Public Sector Efficiency: The Chamber argued that the reform agenda is at risk without “substantial improvements” in institutional capacity and inter-agency coordination.
The Chamber also noted a missed opportunity, stating the budget lacked a “targeted investment incentive package” essential for attracting the large-scale, export-oriented investments needed to achieve the government’s 7% growth target.
Furthermore, the Chamber called for clarity on the proposed Economic Transformation Act and urged the government to fast-track legislation for State-Owned Enterprise (SOE) and PPP reforms.
Concluding its comments on the Budget, the Chamber reaffirmed its commitment to collaborate with the government, underscoring that “sustained delivery” on these reforms is the only way to convert current economic stability into durable, broad-based growth.
By Sanath Nanayakkare ✍️
Business
Sri Lanka betting its tourism future on cold, hard numbers
National Airport Exit Survey tells quite a story
Australia’s role here is strategic, not charitable
In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.
The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.
The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”
Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.
“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.
“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.
By Sanath Nanayakkare
Business
New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda
In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.
Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.
“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.
To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:
Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.
Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.
Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.
Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.
Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.
By Sanath Nanayakkare
Business
Brandix recognised as Green Brand of Year at SLIM Awards 2025
Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.
The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.
A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.
Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”
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