Features
Sampath Group’s Total Asset Base Surpassed Rs 2 Tn
Financial Performance
The Sampath Group achieved its highest financial performance in its history, recording a PBT of
Rs 53.0 Bn and a PAT of Rs 32.6 Bn, reflecting year-on-year growth of 8% and 13%, respectively. Meanwhile, the Group’s total asset base surpassed Rs 2 Tn in 2025, reflecting a 12% growth compared to year-end 2024.
The Bank too recorded the highest profitability in its history during the financial year ending 31st December 2025, reporting a Profit Before Tax (PBT) of Rs 49.3 Bn and a Profit After Tax (PAT) of Rs 30.2 Bn, representing year-on-year growth of 5% and 11%, respectively. The PBT and PAT growth rates were even more impressive at 22%, when adjusted for the additional profit derived in 2024 for the restructuring of the Sri Lanka International Sovereign Bonds. The Bank achieved a significant milestone in 2025, with its gross loan book expanding by Rs 259 Bn to reach Rs 1.2 Tn by end-2025, compared to Rs 965 Bn in 2024, reflecting a strong year-on-year growth of 27%.
Key Financial Highlights for the Year Ended 31st December 2025
Declared a first and final cash dividend of Rs 10.30 per share, marking an increase of Rs 0.95 per share compared with the previous year.
ROE rose to 17.93% in 2025, compared with 17.74% in 2024.
Lending momentum has accelerated since August 2025, with average monthly growth of Rs 36.5 Bn.
Improved credit quality is evidenced by reductions in both Stage 2 and Stage 3 loans.
Both capital and operating expenditure increases were in line with the Bank’s long range strategic initiatives to accelerate future growth.
The total tax charge exceeded Rs 33 Bn, resulting in an effective tax rate (ETR) of 52.3%.
The Bank’s Tier 1 and Total Capital Adequacy Ratios stood at 14.75% and 17.65%, respectively, comfortably exceeding regulatory minimums and reinforcing a solid capital position.
Gross Income
In 2025, the Bank’s gross income reached Rs 218.8 Bn, reflecting a year-on-year growth of 12%. This performance was supported by contributions from interest income, fee-based income and other income streams.
Fund Based Income
For the year ended 31st December 2025, the Bank reported total interest income of Rs 181.1 Bn, reflecting a decline of 1% compared to 2024. This was primarily attributable to a lower AWPLR and reduced interest rates on government securities. In response to the correction in market interest rates, the Bank strategically redirected funds previously invested in government securities into its robust lending portfolio.
Interest expenditure for the year increased marginally, driven by growth in the deposit and borrowing portfolios. Consequently, Net Interest Income (NII) reached Rs 77.8 Bn for the year, reflecting a 3% decrease compared to the previous year.
Meanwhile, the Net Interest Margin (NIM) contracted by 79 basis points, declining from 4.90% in 2024 to 4.11% in 2025. This contraction was primarily driven by lower yields on the investment portfolio and reduction in AWPLR reflecting the broader downward trend in market interest rates, as well as the benefits passed down to its customers.
Non-Fund Based Income
Net Fee and Commission Income
Net fee and commission income across all segments increased by 21% in 2025, reaching Rs 21.2 Bn, driven by credit growth, stronger economic activity, and greater card usage. Furthermore, process improvements driven by new strategic initiatives played a key role in the growth of this income category.
Net Gain on Derecognition of Financial Assets
A gain of Rs 4.0 Bn was recognised from the disposal of Financial Assets, mainly realized in the first quarter of 2025 from the sale of Treasury bills and bonds. In 2024, the Bank recorded Rs 7.2 Bn loss primarily from the restructuring of the Sri Lanka International Sovereign Bonds. Excluding this loss, the result for 2025 represents a growth of 250% compared to 2024.
Net Trading and Net Other Operating Income
The Bank reported a total gain of Rs 6.5 Bn under net trading and other operating income in 2025, compared to a loss of Rs 2.8 Bn in 2024. The gain was primarily driven by an exchange gain of Rs 5.3 Bn, following the LKR’s depreciation of Rs 16.63 against the USD. In contrast, in 2024, the LKR appreciated Rs 30.75 per USD, resulting in an exchange loss of Rs 4.2 Bn.
Impairment Reversal/Charge
The Bank recorded a total impairment reversal of Rs 0.6 Bn during the current year, representing a significant reduction of Rs 11.1 Bn compared to the previous year. Of the total reversal recognised in 2024, Rs 15.8 Bn arose from the restructuring of Sri Lanka International Sovereign Bonds (SLISBs). Excluding this one-off reversal, the Bank would have reported an impairment charge of Rs 4.1 Bn in 2024.
Impairment reversal/charge on loans and advances
In 2025, the Bank recorded an impairment reversal of Rs 1.0 Bn on loans and advances, compared with a charge of Rs 2.8 Bn in 2024.
Amid accelerated credit growth in the latter part of the year, the Bank recognised additional impairment provisions on newly granted loans and maintained higher provision coverage across all stages compared with 2024.
The Bank’s strengthened recovery efforts, together with improved customer repayment capacity, supported by lower interest rates and favourable economic conditions, led to a significant reduction in Stage 2 and Stage 3 loans. The reinstatement of the parate execution law further facilitated the recovery of long-outstanding Stage 3 loans. Provision reversals arising from enhanced recovery processes exceeded impairment charges on newly granted loans. Consequently, Stage 3 loans as a proportion of gross loans declined to 9.6% as at 31st December 2025 from 13.7% at the end of 2024, while Stage 2 loans decreased from 15.7% in 2024 to 7.6% by the end of 2025.
Large customers affected by Cyclone Ditwah were separately identified and assessed under the Individually Significant Customer Impairment process, with provisions determined based on the severity of the impact on their business cash flows. Customers requesting moratoriums who were classified under collective impairment were also identified, and an additional overlay allowance was recognised. The number of customers requesting moratoriums was considerably lower than in the COVID-19 related period.
Impairment charge on other financial instruments
The Bank recognised an impairment charge of Rs 1.4 Bn for the year ended 31st December 2025, primarily attributable to the purchase of short-tenor PDI bonds. In contrast, last year’s reversal was mainly driven by the release of the full provision made against SLISB following its restructuring.
Operating Expenses
Operating expenses increased by 19% year-on-year, primarily due to incremental costs related to executing strategic initiatives aimed at positioning the Bank for its next phase of growth. Personnel costs rose by 10%, driven by annual salary increments, the expansion of the staff cadre and the acquisition of new talent to support business growth. These costs, together with increased investment in technology, were aligned with the Bank’s future-focused strategic initiatives aimed at supporting long-term growth.
As a result, the Bank’s cost-to-income ratio (CIR) rose by 170 basis points to 42.7%, compared with a CIR of 41.0% in the previous year, after adjusting for the impact of the SLISB restructuring.
Taxation
The total tax charge increased to Rs 33.2 Bn in the current year, up from Rs 32.6 Bn in the previous year, driven by higher taxable income. Despite this, the Bank’s effective tax rate (ETR) marginally declined to 52.3% in 2025, compared with 54.4% in 2024. Total taxes paid to the Government of Sri Lanka during the year exceeded Rs 39.0 Bn, compared with Rs 33.8 Bn in the previous year.
Dividend
The Board of Directors has recommended a final cash dividend of Rs 10.30 per share for the financial year ended 31st December 2025, subject to shareholder approval at the 40th Annual General Meeting scheduled for 30th March 2026. The dividend payout ratio for the year stood at 39.98% (2024: 40.13%).
Key Ratios
The Bank achieved an improvement in profitability in 2025, with Return on Average Shareholders’ Equity (after tax) rising to 17.93% from 17.74% in 2024. Conversely, Return on Average Assets (before tax) declined to 2.60%, from 2.84% at the end of the previous year, primarily driven by accelerated credit growth in the latter part of the year, which resulted in the recognition of the full impairment provision in the absence of sufficient interest income to absorb it.
Capital and Liquidity
Despite reallocating funds from government securities to lending, the Bank maintained strong capital and liquidity ratios, comfortably exceeding the minimum regulatory requirements throughout 2025. As of 31st December 2025, the Bank’s Common Equity Tier 1 (CET1), Tier 1, and Total Capital ratios stood at 14.75%, 14.75%, and 17.65%, respectively, compared with 16.75%, 16.75%, and 19.38% at the end of 2024.
Liquidity levels remained robust, with the all-currency Liquidity Coverage Ratio (LCR) at 239.79% and the Net Stable Funding Ratio (NSFR) at 173% as of 31 December 2025, well above the minimum regulatory requirement of 100% in both cases.
Assets
Total assets grew by 11% to Rs 1.98 Tn as of 31st December 2025, supported by expansion of the loan portfolio. Gross loans rose by Rs 259.0 Bn, from Rs 964.6 Bn at end-2024 to Rs 1,223.6 Bn. Technology-driven enhancements and process improvements implemented through new strategic initiatives enabled higher lending volumes, shorter turnaround times, and the development of a robust SME and corporate loan book.
Additionally, funds previously invested in government securities were redirected to support loan growth, leading to a significant reduction in investments in Government Securities as the Bank adjusted its asset mix to levels approaching those seen before COVID-19.
Liabilities
The Bank’s total liabilities increased by 12% to Rs 1.80 Tn as of 31st December 2025, primarily driven by growth in the deposit portfolio, which rose by Rs 178.1 Bn, from Rs 1.47 Tn at the end of 2024 to Rs 1.65 Tn at year-end 2025.
Group Expansion
The Bank wholly owns four subsidiaries—Siyapatha Finance PLC, Sampath Securities (Pvt) Ltd (formerly SC Securities Pvt Limited), Sampath Information Technology Solutions Limited and Sampath Centre Limited. In January 2026, the Bank established a new wealth management company to better address the evolving needs of its customer segments and is currently awaiting regulatory approval.
Driving a Sustainable Future for Sri Lanka
Sampath Bank continues to lead in sustainability through its infrastructure rejuvenation project, “Wewata Jeewayak”, marked by the restoration of its 28th tank, providing a significant boost to the country’s agricultural and community development. This complements the Banks ongoing initiatives in coral restoration, turtle conservation, forest replantation, mangrove restoration and several other environmental and community projects.
Furthermore, the Bank has strengthened its position as a national ESG leader by integrating sustainability principles into its business strategy, decision-making and operations. This holistic approach enables the Bank to create long-term value while promoting meaningful environmental protection and community empowerment.
Sampath Bank also made notable progress in strengthening sustainable finance, climate governance and operational performance. The scope of ESG-linked credit screening was further expanded in line with the best global practices. A key highlight was the successful implementation of SLFRS S1 and S2 under the Bank’s Climate First Action Plan, marking a significant advancement in climate-related governance, strategy, risk management and metrics and targets.
As part of its contribution to green finance, Sampath Bank launched a Green Fixed Deposit supported by a comprehensive Green Deposit Framework, which obtained independent limited assurance at the pre-issuance stage, enhancing credibility and stakeholder confidence.
Beyond its environmental initiatives, Sampath Bank demonstrated strong social responsibility during periods of national crisis. In response to the devastation caused by the Ditwah Cyclone, the Bank donated Rs 100 Mn to the ‘Rebuilding Sri Lanka’ Fund to support economic recovery and business revival across the country. In addition, the Bank facilitated urgent humanitarian assistance by providing essential medical supplies to the Sri Lanka Red Cross and the Sri Lanka Air Force.
Features
Pay attention or pay the price: Sri Lanka’s maritime imperative in a fractured ocean
Sri Lanka stands at a geopolitical crossroads where geography is both its greatest asset and its most vulnerable liability. Sitting astride the Indian Ocean’s critical east-west highway, the waters, south of Dondra Head, channel nearly 30% of the world’s maritime trade. This route is the arterial vein connecting Asia, Europe, and the Middle East. Yet, as tensions flare in the Middle East and great power competition intensifies, Sri Lanka finds itself guarding a highway it does not own, with an economy too fragile to absorb the shocks of collateral damage.
Recent analyses, including insights from the Financial Times on the fragility of global ocean governance, offer a stark warning: international treaties alone cannot guarantee security. The newly enacted UN Biodiversity Beyond National Jurisdiction (BBNJ) treaty may be a diplomatic triumph, but as major powers, like the US, sidestep commitments, while China seeks strategic influence, the high seas are becoming increasingly lawless. For Sri Lanka, relying on international law to protect its 600,000 km² Exclusive Economic Zone (EEZ), is a strategy destined to fail. The moment demands a shift from passive reliance to active resilience.
The Naval Imperative: Sovereignty requires strength
The first pillar of survival is a robust Navy. The FT report highlights that without enforcement mechanisms, marine protected areas become “paper parks.” Similarly, an EEZ without patrol capacity is merely a line on a map. With Sri Lanka’s Navy having just rescued 32 Iranian sailors from the sunken frigate IRIS Dena, following a US submarine strike in nearby international waters, and additional Iranian vessels now seeking assistance, or operating in the region, amid major powers vying for influence, the risk of direct incidents at sea remains very real.
Sri Lanka must accelerate investment in blue-water naval capacity and EEZ surveillance. Strengthening patrols, south of Dondra Head, is not just about conservation, it is about sovereignty. The ability to manage rescue operations, grant diplomatic clearances, and monitor traffic, without external coercion, is the definition of independence. “Might is right” remains the operating principle for some superpowers. Sri Lanka cannot afford to be a bystander in its own waters. A strong Navy acts as a deterrent, ensuring that the 30% of global shipping passing nearby does not become a theatre for proxy conflicts.
Statecraft: Balancing economics and sovereignty
The second pillar is nuanced statecraft. Sri Lanka imports nearly 100% of its fuel, making it hypersensitive to disruptions in the Strait of Hormuz. Prolonged conflict in the Middle East will spike oil prices, reigniting inflation and threatening the hard-won economic stability following recent crises. However, economic desperation must not drive diplomatic misalignment.
The smartest priority is strict neutrality. Sri Lanka cannot afford to alienate any major partner – the US, India, China, Iran, or the Gulf states. Coordinating quietly with India for maritime domain awareness is prudent given proximity, but joining any military bloc is perilous. Recent discussions highlight how the US aggressively prioritises resource extraction in international waters, often at the expense of broader environmental protections. Sri Lanka must navigate these competing agendas without becoming a pawn. Publicly urging de-escalation, through forums like the Indian Ocean Rim Association (IORA), allows Colombo to advocate for safe passage without picking sides.
Securing the economy and energy future
The third pillar is economic shielding. The immediate threat is fuel security. The government must build emergency fuel stocks and negotiate alternative suppliers to buffer against Hormuz disruptions. The Central Bank must be prepared to manage rupee pressure as import bills swell. Furthermore, monitoring secondary effects is crucial; higher shipping costs will hit exports like tea and garments, while tourism warnings could dampen arrival numbers.
Long-term resilience demands energy diversification, prioritising solar power. Sri Lanka’s abundant sunshine offers huge potential to cut reliance on Middle Eastern oil and shield the economy from geopolitical shocks. Accelerate rooftop/utility-scale solar with incentives: duty exemptions on equipment, enhanced net-metering, subsidies/loans for households and businesses, and fast-tracked approvals plus battery storage support. This attracts investment, creates jobs, and boosts energy security. Secure financier confidence for sustainable blue economy initiatives without compromising sovereignty.
The bottom line
The message for Sri Lanka is clear: This is a “pay attention or pay the price” moment. The country is geographically positioned on the critical Indian Ocean highway but remains economically fragile. The smartest priorities are to protect people first, secure the seas second, and shield the economy third, all while staying strictly neutral.
Any misstep, whether getting drawn into naval incidents or visibly picking sides in a great power struggle, would be far costlier than the fuel price hike itself. The global oceans treaty may offer a framework for cooperation, but as experts warn, we need “systems of co-operation that go beyond the mere words on the page.” For Sri Lanka, those systems must be built on national capacity, diplomatic agility, and an unwavering commitment to neutrality. The ocean is rising with tension; Sri Lanka must ensure it does not drown in the wake.
Reference:
“The geopolitics of the global oceans treaty”https://www.ft.com/content/563bef02-f4a7-42c3-9cfa-7c3fe51be1eb
By Professor Chanaka Jayawardhena
Professor of Marketing
University of Surrey
Chanaka.j@gmail.com
Features
Winds of Change:Geopolitics at the crossroads of South and Southeast Asia
Asanga Abeyagoonasekera’s latest book is a comprehensive account of international relations in the regions it covers, with particular reference to current rivalries between India and China and the United States. It deals with shifting alliances, or rather alliances that grow stronger or weaker through particular developments: there are no actual breaks in a context in which the three contestants for power in the region are wooing or threatening smaller countries, moving seamlessly from one mode to the other though generally in diplomatic terms.
The area is now widely referred to as the Indo-Pacific. Though that term was coined over a hundred years ago by a German keen to challenge the Anglo-American hegemony that triumphed after the First World War, it gained currency more recently, following a speech by the hawkish Japanese Prime Minister Shinzo Abe, who was instrumental in developing the Quad Alliance between Japan, India, the United States and Australia.
This marked a radical change in Indian Foreign Policy, for India had prided itself previously on being Non-Aligned, while the West saw it as close to the Soviet Union and then to Russa. But as Abeyagoonasekera constantly reiterates, India’s approach is governed now by nervousness about China, which in the last couple of decades has made deep inroads into the Indian Ocean. Now many states around this Ocean, relatively far from China, are being closely connected, economically but also otherwise, with China.
Instrumental in this development is the Belt and Road Initiative, which China has used to develop infrastructure in the region, designed to facilitate its own trade, but also the trade of the countries that it has assisted. Abeyagoonasekera is clear throughout the book that the initiative has been of great assistance to the recipient countries, and contests vigorously the Western claim that it was designed as a debt trap to control those countries.
I fully endorse this view. To supplement his perspective with a couple of anecdotes, I recall a British friend in Cambodia telling me how the country had benefited from Chinese support, which developed infrastructure – whereas the West in those days concentrated on what it called capacity building, which meant supporting those who shared its views through endless seminars in expensive hotels, a practice with which we are familiar in this country too.
Soon afterwards I met a very articulate taxi driver in Ethiopia, who had come home from England, where he had worked for many years, who described the expansion of its road network. This had been neglected for years, until the Chinese turned up. I remembered then a Dutchman at a conference talking about the sinister nature of a plane full of Chinese businessmen, to which an African responded in irritation that the West had applauded the plunder of the continent by their own businessmen, and that the Africans now knew better and could ensure some benefit to themselves as the owners of the commodities the West had long thought their own birthright.
Abeyagoonasekera contrasts with the Chinese approach the frugality of the Indians, a frugality born of relative poverty, and appends the general suspicions with which Indian interventions are treated, given previous efforts at domination. And while he is himself markedly diplomatic in his accounts of the different approaches of the three players in this game, time and time again he notes the effortless ease with which the Chinese have begun to dominate the field.
His research has been thorough, and the statistics he cites about trade make clear that the Chinese are streets ahead of the other two, both in terms of balances as well as in absolute terms. And he notes too that, whereas the Western discourse is of Chinese restrictions on freedom, in Sri Lanka at any rate it is the others who are wary of transparency.
Though he notes that there is no clarity about the agreements the current government has entered into with the Indians, and that contrary to what might have been expected from former Marxists it has not resumed the tilt towards China of earlier left wing regimes, he shows that there has been no break with China. He seems to believe that the groundwork China laid still gives hope of more economic development than what the other two countries have to offer.
We cannot after all forget that the Rajapaksa government first asked India to develop the Hambantota port, and I still recall the Indian High Commissioner at the time, Ashok Kantha, wondering whether India had erred in not taking up the offer. In a marked example of how individuals affect bilateral relations, I have no doubt his predecessor, the effusive Alok Prasad, would have taken up the offer.
It was Rajapaksa hubris that made the cost of the port escalate, for when the rock inside the breakwaters was discovered, before the harbour was filled, and Mahinda Rajapaksa was told it would not cost much to get rid of it, he preferred to have the opening on his birthday as scheduled, which meant the waters then had to be drained away for the rock to be dynamited. And unfortunately, planning being left to the younger brother, we had grandiose buildings in the town, instead of the infrastructure that would have ensured greater economic activity.
This error was repeated in spades with regard to Mattala. Though not in the right place, which was not the case with the Hambantota development, nothing was done to take advantage of the location such as it was and institute swift connections with the hill country, the East Coast, and the wildlife so abundant in the area.
The last section of the book, after its thorough examination of the activities of the three major players in the region as a whole, deals with Sri Lanka’s Domestic Political Challenges, and records, politely but incisively, the endless blunders that have brought us lower and lower. But while highlighting the callousness of politicians, he also notes how efforts to appease the West weakened what he describes as core protections.
Though there has been much speculation about what exactly brought down Gotabaya Rajapaksa – not his government, for that in essence continued, with a different leader – perhaps the most far-reaching revelation in Abeyagoonasekera’s book is of Gotabaya’s conviction that it was the CIA that destroyed him. As so often when the hidden hand of the West is identified, the local contributions are ignored, as Gotabaya’s absurd energy policy, and the ridiculous tax concessions with which his rule began. But that does not mean there were no other players in the game.
Ironically, Gotabaya’s accusations against the United States occur after a startling passage in which Abeyagoonasekera declares of that country that ‘The fatigue gripping the nation is deeper than weariness; it is a spiritual exhaustion, a slow erosion of belief. Rising prices, policy paralysis, and a fractured foreign policy have left America adrift. Inflation haunts them like a spectre, while the immigrant crisis stirs frustrations in communities already stretched to their limits’.
This he claims explains the re-emergence of Donald Trump. Now, in the midst of the horrors Trump has perpetrated, this passage suggests that he is desperate to assert himself in denial of the fatigue that has overcome a nation initially built on idealism, now in the throes of ruthless cynicism. What will follow I do not know. But the manner in which India’s slavishness to the bullying of Netanyahu and Trump has destroyed the moral stature it once had suggests that Abeyagoonasekera’s nuanced but definite adulation of Chinese policy will be a hallmark of the new world order.
By Rajiva Wijesinha
Features
Human–Elephant conflict in Sri Lanka
Human–elephant conflict (HEC) in Sri Lanka results in significant loss of human life, elephant deaths, and extensive damage to crops and property. Despite numerous interventions over the decades, the situation continues to deteriorate. The reasons for the breakdown of what was once a relatively tolerant coexistence—albeit one dominated by humans—into an increasingly confrontational relationship must be clearly understood by both the public and policymakers. Immediate measures are required to minimise losses, alongside long-term solutions grounded in sound ecological and governance principles. It must also be recognised that this is a complex problem; effective mitigation and sustainable solutions require a multidisciplinary approach integrated into the country’s overall development planning. This article examines several cost-effective methods that have been successfully implemented in other countries and may apply to the Sri Lankan context.
Key Challenge: Lack of Reliable Data
The primary reason for the escalation of human–elephant conflict (HEC) is the shrinking of wildlife habitats in the country due to poorly planned development and uncontrolled, unwise land encroachment. A major barrier to effective intervention is the lack of accurate and comprehensive data in two key areas: (a) land and land utilisation, and (b) the elephant population and their range.
It became evident after the Ditwah cyclone disaster that the lack of readily accessible, reliable data on land and its use, is a major obstacle to a wide range of project planning and implementation efforts. Regardless of how HEC is mitigated, the government must take immediate action to establish a digital land-use database, as this is a key component of long-term planning for any development initiative. Using modern aerial mapping technologies, it should be possible to catalogue the geography and utilisation of every square metre of the island’s landmass.
Similarly, accurate data on the number of elephants, their age and gender distribution, and the extent of their habitat range, are essential for data-driven decision-making. Here, too, modern technology offers practical solutions. Land-based digital cameras have been successfully used to count elephants, identify individual animals, and monitor their range. Research has shown that the pigmentation patterns of Asian elephants—particularly those on their ears—can serve as a “fingerprint” for identifying individuals. The same technique can also be used to study elephant movement patterns and habitat range. Computer programmes already exist for such cataloguing purposes; however, developing a similar programme, locally, could be both economical and educational, for example, as part of a university IT programme. Since data-driven decision-making is key to the success of any long-term strategy, data collection must begin immediately while short-term mitigation measures are implemented.
Root cause
There must be a general understanding of how this problem has worsened. Sri Lanka is considered an anomaly in island biogeography for supporting a high density of megafauna—including Asian elephants, leopards, and sloth bears—on a relatively small landmass of about 65,000 square kilometres. This is further complicated by the country’s high human population density, estimated at about 356–372 people per square kilometre, ranking among the highest in the world. The human population has increased more than fivefold between 1900 and 2024, from about 4.5 million to nearly 22 million.
The corresponding expansion of land use for human settlement, agriculture, and infrastructure development has placed enormous pressure on wildlife habitats. Habitat loss, together with imbalances in predator populations, has resulted not only in escalating human–elephant conflict (HEC) but also in increasing crop damage caused by peacocks, monkeys, giant squirrels, and feral pigs. The Sri Lankan elephant has no natural predators; its only significant threat arises from human activities. Restoring balance within this complex ecological system is no easy task, yet it must remain the long-term objective if the country is to safeguard its unique biodiversity.
Short-term Measures
Since the current situation has developed over an extended period, practical and humane solutions will also take time to implement. In the short term, several interventions can reduce direct interactions between humans and elephants while ensuring the safety of both:
* Strict prohibition of roadside feeding and improved waste management.
* Public education on safe deterrence methods and the promotion of ethical and sustainable practices in forests, national parks, and sanctuaries.
* The use of proven, non-lethal deterrent methods implemented in a coordinated and systematic manner.
* Anti-depredation squads (ADS): well-trained response teams tasked with implementing and monitoring these measures.
* The use of AI-based technologies to prevent train–elephant collisions.
Several countries have successfully used chilli as a deterrent to keep elephants away from farms and settlements. While cultivating chilli as a crop may contribute to this effort, it alone is not an effective deterrent; the pungent compounds in chilli, which act as an irritant to elephants, must be delivered effectively. One widely used and economical method is chilli-grease fencing, an alternative to electric fencing. In this method, rags soaked in a mixture of ground chilli and used motor oil are hung from ropes in strategic locations to create a deterrent barrier.
More advanced deterrence techniques have also been tested. For example, compressed-air launchers that fire chilli-filled projectiles have demonstrated effectiveness in safely redirecting elephants from a distance without causing harm. In some countries, locally made projectiles containing chilli powder, sand, and firecrackers enclosed in flexible sheaths, such as rubber balloons, are ignited and launched ahead of approaching animals. When combined with strobe lights, air horns, or other noise-making devices, these methods have been found to be even more effective. Over time, elephants may learn to associate irritation with light and sound, allowing these signals alone to act as deterrents. The main limitation of this approach is the need for well-trained personnel available throughout the day. Therefore, the involvement of existing national services—such as the armed forces—in developing and implementing such systems should be considered.
Technology can also play an important role in reducing train–elephant collisions. Night-vision cameras mounted on trains, combined with artificial intelligence, could be used not only to detect elephants but also to identify patterns in elephant movements near railway tracks. Once such high-risk locations are mapped, additional cameras could be installed along the tracks to transmit warning signals to approaching trains when elephants are detected nearby. As a further step, this system could be integrated with the Driver’s Safety Device (DSD)—the “dead man’s” handle or pedal—so that trains can be automatically stopped when elephants are detected on or near the tracks, thereby reducing reliance solely on driver response.
Sustainable Long-Term Solutions
A lasting resolution depends on strategic land-use planning and coexistence-based management. This must form part of a broader national discussion on the sustainable use of the country’s limited land resources.
* Protection and restoration of elephant migration corridors.
* Data-driven placement and maintenance of fencing, rather than attempting to confine elephants within fixed areas.
* Strengthened management of wildlife reserves, including the prevention of human encroachment and uncontrolled cattle grazing.
* Habitat improvement within forests to reduce the attraction of elephants to agricultural lands.
* Introduction of drought-resistant grass varieties such as Cenchrus purpureus (commonly known as elephant grass or Napier grass) and Pennisetum purpureum in wildlife refuges and national parks to alleviate food shortages during the dry season.
* Population control measures, including vaccine-based methods, supported by reliable population data.
Public education on the importance of maintaining ecological balance—especially amid environmental change and expanding economic development—must also be a key priority. Basic principles of environmental management should be incorporated into higher education across all disciplines. At the same time, difficult but necessary questions must be asked about the long-term sustainability and economic return of certain land-use patterns, particularly those shaped during the colonial period for plantation crops. Inefficient agricultural practices, such as chena cultivation, should be phased out, and the clearing of wilderness—especially in ecologically sensitive highland areas for tourism development—must be strictly regulated.
Elephants typically travel between 15 and 50 kilometres a day. Therefore, restoring uninterrupted elephant corridors, linking existing wildlife reserves, must be a central component of long-term planning. In some cases, this may require carefully considering the relocation of human settlements that have developed within former elephant corridors.
Unfortunately, rural communities often bear a disproportionate share of the burden created by these conservation measures. It is, therefore, essential that policies ensure they receive a fair share of the economic benefits generated by wildlife-based industries, particularly tourism. Such policies should aim to help these communities transition from subsistence livelihoods toward improved standards of living. In this context, a critical evaluation of existing agricultural systems must form part of a broader national land-management strategy. Put plainly, the long-term viability of plantation industries, such as tea and rubber, should be assessed in terms of their return on investment—particularly the investment of scarce land resources.
Finally, all ecosystems have a carrying capacity, meaning there is a limit to the number of people and animals that a given area of land can sustain. This issue extends beyond Sri Lanka; many scientists argue that, given current levels of malnutrition and resource depletion, the planet may already have exceeded its sustainable carrying capacity. Others suggest that technological advances and lifestyle changes may increase that capacity. In either case, significant changes in human consumption patterns and lifestyles are likely to become inevitable.
For elephants, however, the absence of natural predators means that humane human intervention may be required to manage population growth sustainably. If elephant populations were allowed to increase unchecked, food scarcity could lead to malnutrition and starvation among the animals themselves. At the same time, a nation, already struggling with child malnutrition, must carefully balance its limited resources between human welfare and wildlife conservation.
One promising approach is immunological sterilisation using the Porcine Zona Pellucida (PZP) vaccine, a reversible and humane form of immunocontraception used in wildlife population management. By stimulating antibodies that prevent sperm from fertilising eggs, this dart-delivered vaccine controls reproduction without significantly altering the animals’ natural behaviour. Once accurate data are obtained on the age and gender distribution of the Sri Lankan elephant population, the systematic application of such methods could become feasible.
Moreover, the development of local capacity to produce such vaccines should be encouraged. Similar technologies could also be applied to manage populations of other animals—such as monkeys and stray dogs—whose numbers can become problematic if left unchecked. Local vaccine production would not only address domestic needs but could potentially create opportunities for export and scientific collaboration.
Conclusion
Human–elephant conflict (HEC) in Sri Lanka is intensifying due to habitat fragmentation, unplanned development, and weak governance. Elephants require large, connected landscapes to survive, and when traditional migration corridors are blocked, conflict becomes inevitable.
Current ineffective practices—such as the mass translocation of elephants, fragmented fencing that obstructs migration routes, and policies that overlook the livelihoods of rural communities—must be reconsidered and replaced with more effective strategies. Mechanisms must also be established to ensure that the economic benefits of environmental protection, particularly those generated by wildlife tourism, are fairly shared with rural populations who bear the greatest burden of living alongside wildlife.
A shift toward data-driven planning, protection of ecological corridors, community partnerships, and stronger institutional accountability is essential. The human–elephant conflict is not solely a wildlife issue; it is fundamentally a land-use and governance challenge. Sri Lanka would benefit from establishing a dedicated Human–Elephant Coexistence Organisation, or from strengthening an existing Wildlife Commission with the authority and capacity to implement long-term, science-based management strategies.
With informed policies and genuine support for affected communities, peaceful coexistence between humans and elephants is both achievable and sustainable. Ultimately, educating future generations and equipping them to face emerging environmental challenges with knowledge and responsibility is the most effective long-term strategy.
BY Geewananda Gunawardana and Chula Goonasekera
on behalf of LEADS forum
Email admin@srilankaleads.com
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