Business
Trump warns Europe: ‘US is not a Piggybank’ as trade rift deepens
Brussels shows no sign of backing down
By Sanath Nanayakkare
US President Donald Trump’s recent warning to Brussels over a $1 billion fine imposed on Google signals an escalating transatlantic trade confrontation that analysts say could intensify through the end of the year.
When Donald Trump took to Truth Social last Friday with the declaration that the United States is not a “PIGGYBANK” for Europe, it was more than another trademark social media broadside. Economists say it marked a sharp escalation in an increasingly bitter dispute that could evolve into the most serious US-EU trade confrontation in decades.
Trump’s anger was triggered by the European Union’s $1 billion fine against Google for violating the bloc’s Digital Markets Act. But the disagreement extends far beyond a single case. In his post, Trump described penalties imposed on Google, Apple, Meta and Amazon as “illegal and highly unethical,” arguing they amounted to the systematic exploitation of American companies and, ultimately, US taxpayers. He responded by ordering a Section 301 investigation – the same legal instrument previously used to justify tariffs on China – into what he called Europe’s discriminatory regulatory practices.
“We are not going to stand by while European regulators extort billions from our greatest companies,” Trump wrote. “They will pay a very big price.”
Jeremy Stretch, Chief International Strategist at CIBC Capital Markets, described the latest developments as part of a steadily intensifying tariff confrontation that is likely to gather momentum in the coming months. Speaking to the BBC, Stretch said the Trump administration appears prepared to move well beyond rhetoric, with proposed duties on European imports reaching as high as 100%.
“Once again, we’re back in an environment where tariffs are very much front and center,” Stretch said. “The threat could be that, in the upcoming months, there could be a tariff of up to 100% on EU goods. It just amplifies the trade tensions and underlines the uncertainties that the eurozone economy is facing.”
The timing is particularly sensitive. Just days before the Google ruling, the administration imposed fresh tariffs of between 10% and 12.5% on imports from 60 trading partners, including the European Union. (Sri Lanka, notably, qualified for the lower 10% rate after swiftly implementing a ban on forced labor imports – a move that allowed it to avoid the punitive 12.5% tier applied to nations like China, Japan, and South Korea).
Analysts say the latest measures suggest Washington is constructing a more permanent framework of trade restrictions rather than relying on temporary negotiating tactics.
Brussels, however, has shown no indication that it intends to retreat. EU Technology Commissioner Henna Virkkunen has reaffirmed the bloc’s commitment to enforcing its digital regulations, while Teresa Ribera, the European Commission’s Executive Vice President responsible for competition policy, defended the Google decision as “decisive yet balanced.”
“Products should succeed on merit rather than ownership,” Ribera said, signalling that the EU views enforcement of its digital rules as a matter of regulatory sovereignty rather than political bargaining.
The dispute has therefore evolved into a broader contest between national regulatory authority and market access. US Trade Representative Jamieson Greer has warned that the EU’s approach risks undermining the trade agreement reached last year at Turnberry, Scotland, which capped US tariffs on European goods. Meanwhile, Republican lawmakers have introduced the “Stop EU Overreach Act,” which would require investigations into EU sustainability regulations that critics say impose excessive costs on American businesses.
The implications extend well beyond the transatlantic relationship. Stretch noted that European economies remain vulnerable as they grapple with tight gas storage levels ahead of winter. The Indo-Pacific region also faces heightened risks, with economists warning that the latest tariffs add another layer of uncertainty for governments already coping with elevated energy costs and persistent geopolitical tensions.
American consumers are also likely to feel the effects. The new tariff regime is expected to push up prices on a wide range of imported goods, including clothing, electronics, food and automobiles. An earlier round of comparable tariffs was estimated to add about $800 to the average US household’s expenses over a 150-day period.
As Stretch observed, the key question is no longer whether trade tensions will rise, but how far they will go.
“It’s going to be interesting to see how the European Union responds to this threat – whether they will ease back in terms of the process, or whether it will continue to escalate,” he said.
Trump has framed the dispute as a battle against what he calls European “extortion” and America’s refusal to serve as Europe’s “piggybank.” With Brussels equally determined to defend its regulatory authority, the prospects for compromise appear increasingly remote. Unless both sides step back, the dispute risks spilling beyond politics into global markets, disrupting trade, fuelling inflation and weakening an already fragile world economy.
Business
Samata Kotasak, Samata Ekakayak forums draw large crowds in Anuradhapura & Jaffna
The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) have taken their ‘A Share for Everyone, A Unit for Everyone’ (Samata Kotasak, Samata Ekakayak) initiative to Anuradhapura and Jaffna through investor forums last week, as part of an ongoing islandwide effort to broaden investor participation. The forums were held on 10th September at the Golden Mango in Anuradhapura, and on 12th September at the Tilko Jaffna City Hotel. The forums attracted over 600 participants across both locations.
The “A Share for Everyone, A Unit for Everyone” concept, developed by the Chairman of the SEC, Sen. Prof. D.B.P.H. Dissabandara and launched in July of this year, aims to promote a shared commitment to creating wealth and value within a fair, efficient, orderly, and transparent capital market by ensuring broad and accessible participation for all.
As part of this initiative, the SEC and CSE will continue to host investor forums across the country to strengthen investor education and awareness while promoting broader participation in the capital market beyond the Western Province. By leveraging the CSE’s nationwide reach and the growing interest in equity investments, the programme will provide investors with greater access to Sri Lanka’s capital market through stockbroking firms and unit trust management companies.
“Traditionally, Sri Lankan investors have favoured conventional investment avenues, but it has yielded comparatively fewer returns than the capital market,” remarked Executive Vice President – Marketing, CSE, Niroshan Wijesundera, speaking on the Unit Trust and Stockbrokering firm outreach objectives of the broad-basing initiative.
“Over the medium to long term, capital markets have given higher returns. By setting aside small allocations to invest regularly through professionally managed vehicles such as unit trusts, first-time investors can participate in the capital market, receive higher returns in the medium-to-long-term, and gain experience and confidence. On the other hand, those with experience and knowledge can directly engage with the capital market through a stockbrokering firm. Traditional investments are liable to be taxed, whereas investments in the capital market are capital-gains tax free.”
Speaking on the favourable investment climate, he noted that the Sri Lankan capital market is at a relatively low Price-to-Earnings (P/E) ratio of 11.03x in a global context. “As covered in the presentations at the forums, the Sri Lankan capital market has demonstrated comparative resilience in the face of global market corrections, such as the Middle Eastern crisis. Sri Lanka has withstood bigger shocks, such as past crises, the war, COVID-19, the economic downturn, and the fuel crisis.’’
Business
“Pulle Madu” to medical school: record intake signals turning point for plantation sector welfare
Many generations ago, an estate child’s first years began in a cloth hammock strung up near the rows of tea bushes, so a mother could keep working within earshot of her infant. Later a corner in a line room was converted to establish Pulle Madu, where infants and toddlers were sheltered to ensure that plucking by their mothers was not disrupted.
Today, fully equipped Child Development Centers (CDC’s) complete with qualified and trained CDC officers have replaced the old Pulle Madu, to offer children the same level of education and exposure that any child in a city avails. These children receive custodial care, and child development support through these CDC’s, while Early Childhood Centers (ECD) lay greater emphasis on structured early learning through a play-based curriculum, while also providing dedicated spaces for working mothers to breastfeed.
These Centers are the result of the collaborative efforts of the Regional Plantation Companies (RPCs), the Government of Sri Lanka, and key plantation-sector trade unions, including the Planters’ Association of Ceylon. Together, these stakeholders form the tripartite body that established the Planters’ Human Development Trust (PHDT) in 1992, and have since contributed to significant development across the 22 RPCs.
The RPCs collectively spend nearly Rs. 720 million annually to maintain these CDC’s, reflecting the sector’s continued investment in childhood development and the wellbeing of plantation communities. This foundation supports their continued education and health development and, in the long term, helps them progress towards successfully completing the GCE O/L and A/L examinations.
To date, primary school enrolment among children from plantation communities has reached 100%, while approximately 2–3% of students go on to pursue higher education at local universities. Over the past two years, nearly 250 children from plantation families have gained admission to university, marking the highest number recorded by the sector to date. Among them is a young man from Strathspey Estate, now training to be a doctor at Eastern University. “Everything I have achieved is a direct result of my parents’ tireless hard work,” he said, thanking his teachers and the scholarship grant that carried him through school, whose identity is withheld in line with the programme’s standard practice for student privacy.
It also manifests powerfully in Roots to Wings, the university start-up scholarship initiative launched by PHDT in collaboration with the Planters’ Association and other industry partners. “Every year we saw bright students earn a place at university and then risk losing it, not for lack of ability, but because they couldn’t afford a laptop, a set of books, or even proper clothing to arrive on campus with dignity,” explained PHDT Director General Lal Perera. “To correct this situation, after careful study, we facilitated a scheme that bridges the most urgent gap. We cover the immediate start-up costs, while the Regional Plantation Companies, through their CEOs, ensure that the student is carried through to graduation. If a family loses estate housing when a parent retires, we don’t let that end a degree either. Students are granted extensions, and where needed, RPCs provide new housing, supported in part by Indian High Commission grants. Once a child has earned a place at university, we consider it our duty to make sure that place is never lost to circumstance.”
This scheme has become more than financial assistance; it is a lifeline of dignity, continuity, and hope. By addressing the hidden barriers that often derail promising futures, Roots to Wings ensures that talent from the plantation sector is not wasted but nurtured into leadership for tomorrow. It is a model of shared responsibility, where industry stakeholders collectively safeguard the aspirations of youth, transforming vulnerability into opportunity and circumstance into achievement.
The scheme costs an estimated LKR 10 to 15 million a year, funded by various industry stakeholders. The 2024 to 2025 cohort spans 35 Arts students, 22 in Commerce and Management, 13 in Drama and Theatre, 10 in Bio-systems, 7 in Music, 6 in ICT, four each in Medicine and Engineering, three in Engineering Technology, two in Law and 24 across other faculties, a spread once unimaginable on estates where literacy in PHDT’s target areas has climbed from 40 to 84 percent. Specialised degree pathways and vocational opportunities such as Uva Wellassa University’s Bachelor of Science Honours in Plantation Management, vocational training through the National Institute of Business Management and digital learning through the Open University of Sri Lanka has further empowered students with promising academic and career prospects.
The health figures tracked alongside the Department of Census and Statistics and the Family Health Bureau since 1992, shows infant mortality falling from 18.3 per 1,000 live births to 4.65, and under five mortality from 42.6 to 6.26. Maternal mortality, once as high as 150 per 100,000 live births, has fallen close to zero in most recent figures, and stillbirths have dropped from 40 per 1,000 deliveries to under five today. Nearly all deliveries now happen in health institutions, almost every mother receives antenatal care, and every child completes first year immunization, which are gains attributed to better roads, housing, welfare services and preventive healthcare across the estates.
Nutrition support has similarly evolved, with centers moving from contractor-supplied meal packets towards parent-prepared midday meals. A centrally managed kitchen model has also been piloted at Dessford Estate, with a second facility planned at Holyrood Estate. However, officials do acknowledge that nutrition among younger children remains the area needing the most continued investment.
The progress made in improving health outcomes, particularly in reducing infant mortality, is significant. This reflects the RPCs’ continued commitment to community development, which extends to supporting education through scholarship programmes. These initiatives, together with established healthcare and educational support systems, contribute to improving opportunities and outcomes for children and families across plantation communities.
Business
Ceylinco Life dominates NAFLIA 2026 winning 12 top honours, including 5 National Awards
Ceylinco Life has reaffirmed its standing as a powerhouse of sales excellence in Sri Lanka’s life insurance industry, securing an outstanding 12 awards at the 2026 edition of the National Forum for Life Insurance Advisors (NAFLIA), including five National Awards that recognised its professionals as the best in the country.
The awards event saw Ceylinco Life’s sales professionals excel at both the Large Company and National levels, with the company claiming top honours across the Advisor, Supervisor and Branch Manager categories in both levels, while also producing two winners in the Large Company level in the Fast Starter Advisor category.
In the Advisor category, A. P. S. Wijayakumar secured first place at National and Large Company Level, while A. I. P. Manjula was placed second in both levels, giving Ceylinco Life four awards across the two tiers of recognition in this category.
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