Business

A timely eye-opener to the environmental, social and economic costs of AI

Published

10 months ago

2025/11/22

Former Acting CJ Shiranee Tilakawardane

Sri Lanka is positioning itself as an emerging hub for artificial intelligence, promising investors that the island is ready to host large data centres, cloud providers and digital infrastructure on a scale never attempted before. Government statements present AI as a clean, limitless opportunity—an industry that will accelerate GDP growth, attract foreign capital and turn the country into a regional innovation centre.

But at Thursday’s Nations Trust Bank – WNPS Monthly Lecture at the BMICH, former Acting Chief Justice Shiranee Tilakawardane offered a blunt reality check, warning that the nation is entering this race “without calculating the environmental, social or economic costs of what we are inviting in.”

And in the world of AI, she stressed, these costs are not abstract. “AI is not some weightless miracle technology. It is enormously resource-intensive, and those impacts are already shaping global investment decisions,” she said.

She pointed to the sheer energy demand of modern AI systems. Training the GPT-3 model alone required 1,287 megawatt-hours of electricity—an extraordinary figure for a single training cycle. “When a single model consumes that much energy before it is even deployed, we must ask: where is Sri Lanka’s power for dozens of such operations supposed to come from?” she asked.

Daily global usage of ChatGPT now requires nearly 40 million kilowatt-hours. These numbers matter for a country whose electricity system is already stretched thin. Sri Lanka’s grid is fragile, tariffs are rising, and the nation remains heavily dependent on imported fossil fuels. Yet policymakers continue to promise uninterrupted power to companies planning some of the world’s most energy-hungry facilities.

“We cannot pretend that our current energy landscape can simply absorb these demands. The math does not add up,” Justice Tilakawardane warned.

The water footprint may be even more destabilising. Training GPT-3 consumed 700,000 litres of fresh water, and the daily cooling needs of global generative AI systems now run into tens of millions of gallons. Sri Lanka—already grappling with recurring droughts, shrinking reservoirs and climate-driven hydrological stress—has yet to articulate how it will support hyperscale data centres.

“When agriculture, industry and communities are already competing for water, someone will be pushed aside. The question is: whose access will be sacrificed to keep AI servers cool?” she asked.

Justice Tilakawardane also drew attention to global supply chain risks embedded in AI hardware—from child labour in the cobalt mines of the Democratic Republic of Congo to the toxic and energy-intensive semiconductor production processes in Asia. These, she argued, have direct implications for Sri Lankan companies integrating AI into export-focused sectors.

“ESG is not a slogan. It is an accountability framework, and companies that ignore upstream human rights or environmental violations will face consequences in global markets,” she said. Major export destinations are already tightening requirements on reporting, traceability and lifecycle impacts. Without early compliance, local firms could face penalties, blacklisting or costly supply-chain audits.

By Ifham Nizam

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Business

Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

Published

20 hours ago

2026/09/30

Sahan Weerasooriya

The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

Business

Sri Lanka Food Processors Association holds 29th Annual General Meeting

Published

20 hours ago

2026/09/30

Sahan Weerasooriya

The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

Business

Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

Published

20 hours ago

2026/09/30

Sahan Weerasooriya

New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.