Business
LET’S BE ENERGY LEADERS
By Wasantha Perera
Secretary/ Ministry of Power
What and Why a ‘National Energy Day’?
Energy is the creator of a modern society. Our lives revolve around the continuous energy supply, which is made possible by the advanced infrastructure that exists in our cities. The energy supplied to us through our wall sockets, the flow of fuel to vehicles around, and the massive volume of power supplied through our electricity network to power our industries is crucial to our everyday well-being.
Driving the energy sector of the country to efficiency not only marks the success of our economic management, but also the assurance of our future habitability and well-being. This mission of energy management is no small feat. It requires a collective effort of each and every member within our society. A collective mission to conserve energy opens up enormous possibilities and stimulates creativity among our SMEs.
We celebrate National Energy Day to remember this mission and empower the next generation to be a part of it. Today is the day dedicated to energy education, energy awareness and energy innovations. It is dedicated to the experts teach the nation how to conserve energy and help them understand its importance. Importantly, today is the day that we show our gratitude to the endless possibilities provided to us through the energy system, and recognize how we preserve it.
What is energy? How energy dependent are we?
For a long time, scientists and engineers thought mechanical energy and thermal energy were two different types of energy that cannot be mixed together. Mechanical energy is the energy in moving objects, and the energy required to move and lift things. Thermal energy is the energy required to generate heat. In the late 17th century, scientists found out that thermal energy, in fact, can be converted to mechanical energy and vice versa.
Energy comes in so many different forms. We utilize energy to perform motor skills; to throw, lift heat and emit light. Heat, light, sound and electricity are also forms of energy and energy can be converted from one form to the other. Heat can be converted to mechanical energy and mechanical energy into electrical energy by way of using a generator. Light energy can be converted to electricity using solar cells. As we all know, electrical energy is converted to light through a light bulb. This conversion created a new technology called energy technology. Today everybody converts all primary energy sources to electricity, transport to the point of consumption and convert it back to the energy form, which is required.
The energy requirement of the world is supplied by various resources that contain energy within them. Fossil fuels such as crude oil and coal are the most prominent primary energy sources in the world. Still, the firewood and plant components supply a significant portion of the world’s energy requirement. Nuclear energy created by the nuclear reactions of radioactive substances, such as Uranium and Plutonium found in our soil, is also a primary energy source of the world. Hydro energy in water stored at heights are used in hydro-power plants to generate electricity. The light energy in direct sunlight and the wind created by the differential heating of the atmosphere by the sun’s energy provide us with very valuable energy sources. Energy in ocean currents is also an important modern energy source tapped by undersea generators. All these are crucial energy sources that supply energy throughout the world.
In Sri Lanka our primary energy supply comes from fossil fuels (53%), solar (13%), wind and hydro (34%) and biomass. 28% of this primary energy supply is converted to electricity. Our industries consume 26% of the country’s energy. The domestic and commercial sector consumes 41% and 33% by the transport sector. All the energy used for the transport sector is supplied only from fossil fuels.
A moment’s power failure in our electrical grid system can bring our lives to a grinding halt, which shows the energy dependency of our daily lives. This applies to our industries and commercial activities as well. The lifeblood of the modern economy is its energy supply. Therefore, the reliability, stability and sustainability of our energy supply is as important as its affordability.
The energy outlook of our nation is currently in a transitional stage. It is important that we navigate this transition to reduce our carbon footprint and increase our energy security. This can be achieved through a plan governed by a strategic policy and our collective effort.
National energy Policy and its objectives
Sri Lanka’s ‘National Energy Policy’ is a well formed strategy which ensures convenient and affordable energy services for the equitable development of Sri Lanka through a clean, safe, sustainable, reliable and economically feasible energy supply. This Policy is formulated in alignment with the future goals of Sri Lanka, current global trends in energy and the Goal 7 of the Sustainable Development Goals of the United Nations. This policy will impact the vast realm of social, economic and environmental spheres and pave the way to realize the vision of Sri Lanka in achieving carbon neutrality and complete transition of all the energy value chains by 2050.
Energy is said to be at a trilemma. Energy equity, energy sustainability and energy reliability, are at a constant battle with each other. Affordable energy is not always clean or reliable. Clean energy is neither cheap nor guaranteed to be reliable. To make the energy supply system reliable, we are compelled to make massive investments towards delivering energy through systems that are neither cheap not clean. We must maintain a balance between these three competing ends: equity, sustainability and reliability. Thousands of researchers in the energy sector and engineering research centers all over the world strive to innovate technologies to find the right balance between equity, sustainability and reliability of energy. Every energy policy in the world tries to strike their own balancing point. Our energy policy is no different and tries to balance these three ends through various strategies, such as streamlining our firewood supply, going green, reducing the intensity and increasing the efficiency of our transport energy.
It takes a tremendous effort to provide affordable and accessible energy, while maintaining high reliability. The 2015 Sustainable Development Goals clearly recognize this trilemma, and have dedicated the seventh goal to “Ensure access to affordable, reliable and modern energy for all”. Within our global order, positioning Sri Lanka in the global forum as an example of a country with a green energy supply is a top priority that we care very much about.
Our electricity sector plays a vital role as the energy streamliner and catalyzer. In modern Sri Lanka, all energy forms are expected to be converted to electricity and delivered to the point of consumption. This is not as simple as in any other country due to our massive 34% footprint of biomass.
The government’s manifesto ‘Vistas of Prosperity and Splendor’ has captured the gamut of this concept in a powerful manner to state that ‘Sri Lanka is ranked high among the countries with a large share of renewable energy, with a strong commitment to retain this vital attribute of the nation’s economic resilience in a world of diminishing energy security’. As proven by this global pandemic and its consequences, today it is evident now more than ever, that our energy security, energy reliability and energy sustainability defines our world.
What is our responsibility on economic use of energy
The real question is how we can achieve energy efficiency and sustainability as a nation.
Our individual responsibility and role in this area is similar to our function within a democracy. The Sri Lankan energy supply can only be affordable, reliable and sustainable if everybody can together strive to achieve it.
We can identify our energy use among four economic sectors: residential, commercial, transportation, and industrial. We rely on energy for lighting, heating or cooling of buildings, moving vehicles and freight, and manufacturing products. It is projected that Sri Lanka’s energy demand will increase by 5-6% annually. Minimizing energy waste and using energy as economically as possible is the responsibility of every citizen. While my colleagues and various energy professionals dedicate ourselves to improving these systems, it is also equally the responsibility of every individual energy consumer to contribute to this collective mission by ensuring careful and economical use of energy in their day to day life.
The National Day is a perfect moment to reflect on our values and appreciate how far we’ve come, and how far we have yet to go.
“The pessimist complains about the wind. The optimist expects it to change.
The leader adjusts the sails”
John Maxwell Let’s adjust the sails and lead this voyage.
Business
HNB Life reports 54% surge in gross written premium for Q1 2026
HNB Life PLC has delivered a robust performance in the first quarter of 2026, recording a 54% year-on-year increase in Gross Written Premium (GWP) to Rs. 7.01 billion, up from Rs. 4.55 billion in Q1 2025. Net Written Premium rose by a matching 54% to Rs. 6.69 billion, reflecting strong new business generation and policy persistency.
Total net income grew 39% to Rs. 8.69 billion, supported by solid underwriting and steady investment income, including Rs. 2.05 billion from interest and dividends. The company’s balance sheet remains resilient, with total assets reaching Rs. 71.38 billion and the Life Insurance Fund expanding to Rs. 52.55 billion.
Profit after tax stood at Rs. 0.21 billion, though profitability was tempered by a low-interest rate environment and fair value fluctuations in the equity portfolio. No surplus transfer from the Life Insurance Fund has been made yet, as this typically follows year-end valuation.
Chairman Stuart Chapman attributed the momentum to the company’s recent rebranding and its strategic alignment with the Hatton National Bank Group. CEO Lasitha Wimalaratne emphasized disciplined execution, digital enablement, and enhanced distribution as key drivers.
HNB Life, rated ‘A’ (lka) by Fitch, marks 25 years as one of Sri Lanka’s fastest-growing life insurers, operating 79 branches nationwide. The company remains well-positioned for sustainable long-term growth.
Business
ADB Samarkand spirit demands immediate radical shift in Sri Lanka national mindset
The atmosphere in Samarkand, Uzbekistan, during the 59th Annual Meeting of the Asian Development Bank (ADB) was nothing short of electric. Walking through the Silk Road Samarkand complex – a venue steeped in the history of ancient global trade – one could easily feel the weight of past legacies. “More pressing, however, was the palpable urgency of the future, as the halls of the Congress Center resonated with strategic discussions on ‘Asia’s Second Growth Leap.'” The global narrative was unmistakable: the talk of post-crisis recovery was no longer relevant. For Sri Lanka, the echoing message from Samarkand was both a warning and an invitation: the transition from an aid-recipient mindset to a competitive global partner is no longer a choice. It is our only survival mechanism.
While delegates from across the region shared aggressive blueprints for economic acceleration, the absence of Sri Lankan policymakers was a stark reality. Other Asian nations did not speak of mere “potential”; they spoke of velocity.
In Samarkand, the ancient gateway of the Silk Road, the irony was impossible to ignore. As regional leaders debated the deployment of an Interconnected Pan-Asia Grid to revolutionise energy integration, discussed how deep capital markets must drive development, and outlined strategies to scale up investments from critical minerals to advanced manufacturing value chains, a troubling realisation set in. The world is moving at lightning speed on digital highways for inclusive growth, yet Sri Lanka remains haunted by the ghost of political and bureaucratic “dilly-dallying.”
The true “Samarkand Spirit” demands an immediate, radical shift in our national mindset. Sri Lanka must aggressively shed its “crisis” label. The high-level discourse in Uzbekistan focused entirely on how emerging economies can stop begging for economic concessions and start delivering regional solutions.
Whether the focus was on maximising opportunities within the Regional Comprehensive Economic Partnership (RCEP) or financing large-scale offshore wind projects, the core directive for our nation remained constant: Sri Lanka must stop looking for a hand-out and start building an economic bridge.
The ADB has laid out the catalytic pathway for the Asia-Pacific’s second growth phase. The infrastructure, the capital, and the frameworks are ready. The burning question for Sri Lanka’s policymakers is simple: Are we ready to execute, or are we content with stagnation?
Leaving Uzbekistan, the takeaway for our leadership is vivid and uncompromising. Decisive action is the sole currency of the new Asian century.
To bridge the gap between the historic Silk Road and the strategic Indian Ocean, Sri Lanka must:
Accelerate Digitisation: Swiftly overhaul bureaucratic frameworks to create a seamless, trusted digital economy.
Integrate Energy Grid Connectivity: Boldly plug into the regional grid networks discussed at the summit to resolve long-term energy insecurity.
Plug into Global Supply Chains: Pivot aggressively toward high-value manufacturing and regional trade agreements.
The 59th ADB Annual Meeting proved that the international community is ready to partner with a competitive, forward-thinking Sri Lanka. We possess the geographic location and the inherent talent. Now, post-Samarkand, we have the definitive roadmap.
The “Second Leap” of the Asia-Pacific region is already in motion. The ultimate test for Sri Lanka’s policymakers is whether they will lead the country into this dynamic new era or leave us observing fruitlessly from the sidelines.
By Sanath Nanayakkare
Business
First drop in new business in three years: The hidden warning in Sri Lanka’s April PMI
Here is the point that carries more weight than the headline PMI figures released by the Central Bank of Sri Lanka. While much of April’s contraction in manufacturing (42.6) and services (46.7) was dismissed as seasonal — the Sinhala and Tamil New Year holidays, fewer working days, fading festive demand — the rupture in new business flows tells a different, more troubling tale.
April 2026 marked the first month since April 2023 that services sector new business contracted. Not a slowdown. Not a plateau. An outright decline. Nor was it narrow in scope. The deterioration cut across transportation of goods, insurance, wholesale and retail trade, and accommodation, food and beverage service activities.
The Island Financial Review asked an independent analyst for his take. Here is what he said.
“These are not fringe sub-sectors; they are the arteries of Sri Lanka’s domestic economy. Why does this matter beyond the seasonal logic? Because new business is a leading indicator. What falls today in new orders will show up tomorrow in production, employment and stock purchases. April’s drop in new business — the first in three full years — suggests that May’s anticipated recovery may be shallower than hoped, and that a return above the neutral 50 PMI threshold before June is unlikely unless geopolitical tensions ease sharply.”
“Compounding the concern, the decline in new business was not an isolated Sri Lankan phenomenon. It arrived alongside two external shocks: rising energy prices, which hammered transport and personal services, and the ongoing Middle East conflict, which lengthened supplier delivery times and added logistical friction.”
“To be sure, expectations over the next three months remain positive. Firms hope for a stabilisation following the end of the war. But the first decline in new business in three years is a quiet alarm. Seasonal patterns explain April’s production dip. They do not explain why customers stopped placing new orders. For Sri Lanka’s policymakers and business leaders, that is the story to watch in May,” he said.
By Sanath Nanayakkare
-
News5 days agoEx-SriLankan CEO’s death: Controversy surrounds execution of bail bond
-
Features1 day agoSri Lankan Airlines Airbus Scandal and the Death of Kapila Chandrasena and my Brother Rajeewa
-
Features6 days agoHigh Stakes in Pursuing corruption cases
-
Features6 days agoWhen University systems fail:Supreme Court’s landmark intervention in sexual harassment case
-
News2 days agoLanka’s eligibility to draw next IMF tranche of USD 700 mn hinges on ‘restoration of cost-recovery pricing for electricity and fuel’
-
Midweek Review5 days agoA victory that can never be forgotten
-
Features3 days agoMysterious Death of United Nations Secretary General Hammarskjöld
-
Opinion4 days agoElectricity tariffs have skyrocketed: Can further increases be prevented?
