Business
Single uniform tariff urged for all Sri Lankan imports
‘Countries that have grown fast, especially in East Asia, have understood the importance of trade reform. The first step of such a reform agenda should be to simplify taxes at the border by removing the so-called “para tariffs” that Sri Lanka levies beyond the regular import duties and introduce a single uniform tariff for all imports, the Advocata Institute’s Academic Chair Dr. Sarath Rajapatirana said.
Sri Lanka’s trade as a % of GDP has been low when compared to neighbouring countries like Thailand and Vietnam, indicating that we have not truly exploited our opportunity to trade. Research shows, Sri Lanka, has high tariff rates compared to other developing countries, and while tariffs play a role in protecting domestic infant industries, if tariffs are too high, they can become anticompetitive. Recent import restrictions, such as banning a wide range of consumer goods since the beginning of April 2020, have further worsened Sri Lanka’s growth potential and put Sri Lanka at odds with WTO rules.
Dr. Dayaratna Silva ( International Trade Economist, Former Sri Lankan Ambassador to the World Trade Organization) elaborated on the severe consequences for Sri Lanka’s economy if such import restrictions continue. He explained that there is a possibility of tariff retaliation. “Prolonged import controls are not consistent with the WTO, and its high time such is readdressed”, he went on to say.
Such forms of retaliation could have a significant negative effect on our imports, thereby worsening our existing foreign exchange and balance of payment crisis. Another key long term concern for the economy. “My worry is the long term industrial development of the country because of these restrictions. Resources are inefficiently being allocated as a result”, further commented Dr. Dayartna De Silva.
Denis Chaibi ( Ambassador, Delegation of the European Union to Sri Lanka and the Maldives) commented on the importance of adhering to global rules on trade. He commented that “the European Union tries to have a rule based order. When a country does not follow those rules, the rule based structure is affected. Without trade, for a small country like Sri Lanka, the prospect is not good”. His comments brought into perspective the wider ramifications of import restrictions on Sri Lanka’s multilateral relations.
Professor Prema- Chandra Athukorala (Emeritus Professor of Economics, Arndt-Corden Department of Economics, ANU), who is an authority on global production networks, explained that “No country in the world now produces goods from the beginning to end within their geographic boundaries. Countries specialise in different components within the production value chain. Made in the country X label has become invalid, a Country has to identify comparative advantage within the production network. “. Thereby elaborating on how Sri Lanka cannot achieve economic growth without joining global production networks through trade. He concluded by commenting on recent developments of import controls by saying that “selective intervention, without disturbing the incentive structure of the country as a policy, is going to be a recipe for disaster”.
These views were expressed at the event “Deep Dive”, organised by the Advocata Institute that aims to bring focus on Sri Lanka’s biggest policy challenges. The event was moderated by Aneetha Warusavitarana, Research Manager, Advocata Institute. As a precursor to the event, Advocata released a primer on debt sustainability with the aim of helping Sri Lankans understand the topic. The recording of the discussion can be found at Advocata Institute’s YouTube Channel https://www.youtube.com/watch?v=8M981XmlbAs / to get a comprehensive understanding of Trade and how it affects Sri Lanka’s economy and the livelihoods of all Sri Lankans. The event was organised in partnership with the European Union.
Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.
By Sanath Nanayakkare
Continuing its mission to drive inclusive economic recovery and empower Sri Lanka’s grassroots business sector, the Commercial Bank of Ceylon PLC has actively accelerated the disbursement of the Asian Development Bank’s (ADB) Enhancing Small and Medium-Sized Enterprises Finance Project line of credit.
As Sri Lanka’s premier private sector lender, Commercial Bank drives regional development by bridging financial gaps outside the Western Province. Jaffna and the broader Northern Province remain pivotal focus areas due to their immense potential for industrial regeneration, vibrant agricultural output, and entrepreneurial resilience in the post-crisis economic landscape.
Directing targeted, affordable financing enables local enterprises to overcome historical financing barriers, expand production capacity, and stimulate employment across regional supply chains.
Quality at the Source: ADB Country Director Shannon Cowlin inspects a bottle of premium sesame oil at the New V.S.P. Gingelly Oil factory floor in Jaffna. Working capital facilities extended through Commercial Bank under the ADB line of credit enable manufacturers like Harish Industries to meet growing wholesale and retail demand across Sri Lanka while securing long-term economic resilience.
The dedicated credit scheme offers affordable interest rates to help small and medium-sized enterprises (SMEs) rebound from recent macroeconomic shocks, maintain employment stability, and build long-term sustainability. Designed to target underserved segments, the funding line prioritizes viable enterprises located outside the Colombo district, women-owned and women-led businesses, and ventures incorporating strong climate finance components. Eligible sectors span manufacturing, agriculture, animal husbandry, technology, tourism, and direct export industries.
A standout beneficiary showcasing the transformative impact of this regional focus is Harish Industries, a flourishing manufacturing firm located within the purview of Commercial Bank’s Manipay branch in Jaffna. Owned and operated by proprietor Ponnuchamy Prabakaran, Harish Industries manufactures premium sesame oil under the popular brand name “New VSP Gingelly Oil”.
The working capital facility extended by the line of credit to Harish Industries helped to cater to short-term liquidity needs, ease out cash flow pressure, and operate the business in a sustainable manner.
Additionally, this financial backing helped create more employment opportunities, strengthen its supply chain, and expand business operations to meet growing wholesale and retail demand across Sri Lanka.
by Sanath Nanayakkare
True corporate leadership extends far beyond financial metrics and market dominance. For the Commercial Bank of Ceylon – recognised as Sri Lanka’s top-ranked bank in the 2026 edition of The Banker’s Top 1000 World Banks and the country’s first 100% carbon-neutral bank—true progress means investing directly in the nation’s ecological health.
On 19 September, the Bank demonstrated how a massive institutional infrastructure can be mobilised for the greater good.
Marking International Coastal Cleanup Day 2026 under its “Forward Together for a Cleaner Future” platform, the Bank brought together employees, corporate management, customers, and volunteers for a coordinated national conservation initiative spanning 20 locations.
What sets this effort apart is its deliberate breadth. The campaign moved far beyond a conventional beach cleanup by integrating 16 coastal sites – including prominent Colombo locations like Mount Lavinia, Wellawatte, and Galle Face, alongside regional spots from Point Pedro to Dondra – with four vital inland waterways, such as the Mahaweli River at Polgolla Dam and Parakrama Samudraya. This structural reach ensured that even inland communities could actively participate in a unified national environmental mission.
This massive undertaking was anchored by robust partnerships, working alongside the Marine Environment Protection Authority (MEPA) as the technical partner and the United Nations Global Compact (UNGC) Network Sri Lanka. By translating its formal 2025 adoption of Sustainable Development Goal 6 (Clean Water and Sanitation) and its role as a UNGC Patron into boots-on-the-ground volunteerism, the Bank bridged high-level environmental policy with grassroots action.
Ultimately, Commercial Bank’s nationwide mobilisation proves that when a premier financial institution harnesses its expansive network, corporate responsibility stops being a theoretical framework and becomes a tangible, community-driven force for a cleaner future.
The grand halls of the Taj Samudra in Colombo buzzed with a distinct energy on the morning of September 25, 2026, as leaders gathered for the National Celebration of World Tourism Day.
Yet, beneath the formal discussions on digital agendas and artificial intelligence, a deeper, more vibrant narrative was quietly unfolding. This was not merely a story of algorithms and automated efficiency; it was a human story – a tale of Sri Lanka’s youth stepping forward to redesign the future of hospitality.
For generations, Sri Lanka’s allure has been rooted in its timeless landscapes, golden shores, and the legendary warmth of its people. But as global travel evolves, a new generation of tech-savvy local innovators is finding ways to weave cutting-edge technology into the rich tapestry of Sri Lankan culture. This shift took center stage during the Tourism Start-Up Competition 2026, held under the theme “AI-Driven Innovation for the Future of Tourism”.
Out of 52 competitive applications spanning tertiary and commercial levels, young minds proved that technology and tradition can go hand in hand.
The twenty-five shortlisted teams stood before expert panels to defend visions that bridge the gap between ancient heritage and modern data intelligence.
Behind every submitted AI solution was a young entrepreneur eager to protect local destinations, enhance visitor experiences, and elevate service delivery.
When the twelve winners were finally honoured, the celebration transformed into something much greater than an awards ceremony.
It served as a powerful reminder that the true engine of Sri Lanka’s digital transformation is its youth. Armed with code, creativity, and a profound love for their country, these young visionaries are ensuring that when travelers explore Sri Lanka, they do not just witness the future – they feel the heartbeat of a new, digitally empowered era of hospitality.
Mexico’s Pacific coast braces for Hurricane Polo
Washout against Afghanistan sends India into semi-finals
‘Still a lockdown’: Deadly floods hit Nepal tourism as peak season begins
Tharanga wins highly anticipated Asian Games gold
Tharanga on cusp of Asian Games Gold
Rain threat looms over lopsided India vs Afghanistan quarter-final
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
News6 days agoMastermind Naufer Moulavi among 15 found guilty
-
Midweek Review6 days agoThileepan’s fast unto death: An authentic narrative that many missed
-
News7 days agoProtest against setting up of cement factory in highly populated area near BIA
-
Latest News5 days agoShowers above 100 mm are likely at some places in the Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara Districts
-
Editorial7 days agoTrouble beginning in earnest
-
Editorial6 days ago
Big Bad Bills
-
News7 days agoPolice may seek clarification from US
-
News7 days agoGovt. confident of 2/3 majority despite NPP split speculation