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Half of Asia’s ad money now flows to social media platforms, starving traditional outlets says expert

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Nearly fifty per cent of advertising budgets in Asia are now being captured by social media platforms and digital influencers, a shift that is rapidly hollowing out the financial base of traditional media and threatening the future of independent journalism, Regional Advisor – Asia and Africa of International Media Support (Denmark) Dr. Ranga Kalansooriya warned.

Delivering the keynote address on “Emerging new media and the future of print journalism” at the launch of Pathrakala Prasadini — a compilation of mass communication articles by 20 senior scholars and veteran journalists — Dr. Kalansooriya said advertisers were increasingly diverting funds away from television, radio and print towards digital platforms, believing influencer-led promotions to be more “usable, user-friendly and penetrative”.

Sri Lanka’s advertising market for 2025–2026 was estimated at around US$ 400 million, he said. While nearly 90 per cent of that revenue had flowed to traditional media in previous years, the share had now shrunk to about 70 per cent, with roughly 30 per cent going to social media. Of the funds reaching mainstream media, television still commanded around 60 per cent, with radio and print together accounting for about 30 per cent, and the balance spent on billboards and other outdoor advertising.

Television, once the dominant beneficiary of 80–85 per cent of advertising expenditure, had seen its share erode significantly, Dr. Kalansooriya noted, warning that radio and print had been hit the hardest. “If one has money to invest, there are now four or five radio channels on sale,” he observed, underlining the financial distress in the sector.

A further concern, he said, was that much of the advertising money flowing into social media did not remain in Sri Lanka. An estimated 30 per cent of the national advertising budget was remitted overseas to global tech giants such as Meta and Google, as influencers and digital advertisers relied on foreign-owned platforms. This outflow, he warned, was likely to rise to between 35 and 40 per cent in the coming year.

Major advertisers in Sri Lanka had already begun splitting their budgets equally between digital and mainstream media, he said, even as television networks maintained they still commanded the lion’s share. The question, Dr. Kalansooriya cautioned, was whether that dominance could be sustained in the years ahead.

Placing the financial crisis in a broader democratic context, he said the media industry in Sri Lanka had rarely been a consistently profitable enterprise, with owners often subsidising operations through income from other businesses. Advertising revenue had traditionally sustained media institutions, and its erosion now imperilled their survival.

“We speak of the media as the fourth pillar of democracy,” Dr. Kalansooriya said. “There cannot be democracy without independent media. If independent media collapses, democracy collapses with it. Then who performs that role — Facebook, YouTube or TikTok?”

While many traditional media houses had moved into the digital space and begun seeking revenue through subscriptions and monetisation, he warned that this too risked deepening dependence on foreign platforms. Big Tech companies, he argued, were positioning themselves to replace independent media as key arbiters of public discourse, even as they claimed creators benefited from monetisation schemes.

Dr. Kalansooriya said several Asian countries had already begun grappling with the implications of this shift. Governments in the region were exploring mechanisms to support mainstream media, including public funds, regulatory interventions and the mobilisation of local capital. Canada, he noted, had introduced direct financial support for media institutions, while countries such as the Philippines and Indonesia had sought to channel corporate social responsibility (CSR) funds into sustaining news organisations.

He cautioned, however, that reliance on politicised corporate funding carried its own risks. In India, he said, an estimated 90 per cent of traditional media ownership had already shifted into the hands of business interests aligned with the political leadership, leaving only a small fraction of independent outlets, many of them digital.

The keynote address was delivered at an event held at the Russian Cultural Centre in Colombo to mark the launch of Pathrakala Prasadini, published in line with the 70th anniversary conference of the Sri Lanka Press Association and the D. F. Kariyakarawana Memorial Journalism awards. Director of the Colombo Russian House Maria Popova was the guest of honour.

By Saman Indrajith ✍️



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Steps are taken to accelerate the recovery efforts following Cyclone Ditwah despite Global Economic Challenges

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A discussion on accelerating recovery measures and providing relief to those affected by the Cyclone Ditwah was held on March 28 at Temple Trees, with the participation of Prime Minister Dr. Harini Amarasuriya and civil society organizations.

During the meeting, a brief report on the current status of government measures including compensation payments through District Secretariats and information related to safety camps was presented to the Prime Minister by the Chief of Staff to the President and Commissioner General of Essential Services,  Prabath Chandrakeerthi.

Special attention was given to the concerns of the estate sector Estate sector Malaiyaha Tamil community affected by the cyclone, particularly those without legal land ownership, in accessing government relief and compensation. Attention was also drawn to the need for a policy decision in coordination with the Ministry of Plantation and Community Infrastructure regarding this matter.

It was further stated by the Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta , that plans have been made to accelerate the recovery process related to damages caused by the disaster in 2025. These include the construction of 20,000 new houses, the renovation of 115,000 partially damaged houses, and the provision of financial assistance amounting to Rs. 5 million for individuals who already possess safe land to build a house. Additionally, there are plans to construct apartment complexes with public facilities in major urban areas.

Officials further emphasized that the physical, psychological, and social well-being of affected communities especially women, children, and persons with special needs will continue to assess through civil society organizations, special committees, and sub-committees.

The Prime Minister emphasized that the efforts to rebuild damaged housing have focused on constructing homes in locations that are more suitable and equipped with urban public facilities over the past four months, stressing the importance of maintaining continuous communication with communities and ensuring that reconstruction takes place in safer locations that are less vulnerable to future disasters.

The discussion was attended by Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply Engineer L. Kumudu Lal Bogahawatta, Additional Secretary to the Ministry of Defence K.C. Dharmathilaka, and representatives from civil society organizations.

[Prime Minister’s Media Division]

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Burning of low-grade coal at N’cholai plant increases pollution: Parliament

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Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.

The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.

The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.

The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.

These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.

It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.

It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.

In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.

Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.

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Tariff shock from 01 April as power costs climb across the board

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By Ifham Nizam

Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.

The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.

Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.

For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.

However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.

Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.

“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.

The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.

The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.

Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.

Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.

With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.

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