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Local entrepreneurs propose high-quality saree manufacturing in Sri Lanka to curb forex outflow

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Sidambaram Karunanithi Pic by Nishan S. Priyantha

A group of local entrepreneurs is urging the government to overhaul the nation’s textile import policy, proposing a bold shift toward domestic saree manufacturing to stem the critical outflow of foreign exchange.

Sidambaram Karunanithi, a Pettah-based entrepreneur with deep roots in India and the textile trade, told The Island Financial Review that approximately 100,000 sarees are sold daily across Sri Lanka. He argued that the total reliance on Indian imports for this high-volume commodity represents an “unnecessary drain” on the country’s precarious dollar reserves.

The consortium, led by Karunanithi, has drafted a comprehensive roadmap to achieve self-sufficiency in the sector. The plan envisions the establishment of nine specialised factories – one in each province – to decentralize the industry.

“Our strategy is to import raw materials, specifically high-quality yarn, from India and conduct the entire manufacturing process locally,” Karunanithi explained. “By producing within the provinces, we eliminate significant freight costs as well as the need for regional dealers to travel to Pettah. These logistical savings will be passed directly to the end-consumer.”

The entrepreneurs intend to utilize advanced industrial multi-head systems sourced from leading Chinese manufacturers, capable of producing high-speed air-jet and jacquard weaves. Karunanithi emphasised that this technology would allow the local industry to reach a 50% value-addition threshold – more than the 35% standard often requested by the government for other sectors.

“India achieved global manufacturing status through partnerships like Hero Honda and Maruti Suzuki. There is no reason we cannot do the same with sarees. If there is a will, there is a way,” he noted.

Addressing the technical gap, the group plans to initially import skilled labor from India to facilitate a year-long technology and skills transfer. “Within 12 to 18 months, these foreign workers will be entirely replaced by a trained Sri Lankan workforce,” he said.

The proposal includes a request for the government to restrict Indian saree imports over one year to provide the necessary market protection for local startups. Karunanithi stressed that the group is not seeking concessional bank facilities, stating they are prepared to invest in private lands if state land is unavailable.

The entrepreneurs are calling for a meeting with President Anura Kumara Dissanayake and the Ministry of Industries to present their financial profiles and technical capacity.

“We urge the authorities not to make half-hearted or inconsistent policy decisions. If the country allows the manufacture of alcohol, why not sarees?” Karunanithi asked, adding that the foreign currency saved could be vital for the health and education sectors.

By Sanath Nanayakkare ✍️



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Advocata Institute highlights regulatory barrier limiting women’s overtime earnings

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Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.

Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.

Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.

The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.

Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.

Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.

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Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed

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Samantha Gunasekara

Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.

The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.

Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.

“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.

Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.

The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.

MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.

Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.

Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.

Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.

By Ifham Nizam

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Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone

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The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.

However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.

The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.

The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.

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