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Motor traders caution govt on sustainable electrification

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The Ceylon Motor Traders’ Association (CMTA), the most senior automotive association in South Asia welcomes the government’s view that Electric Vehicles (EVs) represent the future of mobility, not just in Sri Lanka, but around the world. While the benefits of EVs are very clear in terms of reduced emissions and fuel savings, the CMTA cautions that the transition from internal combustion engines (ICE) to EVs – commonly referred to as electrification – should be carried out with proper planning and informed decision making, to preserve the interests of the Government, consumers, and the industry.

Being the only Association, which has access to global EV manufacturers and represents them in Sri Lanka, the CMTA is concerned whether due diligence has been carried out prior to the re-introduction of EVs to Sri Lanka. In this regard, the Association on the advice of global manufacturers has decided to develop a detailed automotive industry roadmap with KPMG, covering among other topics the sustainable introduction of EVs. This roadmap will be presented to the government authorities for expert advisory on the automotive industry.

As per the recommendations of global EV manufacturers, the CMTA has put forward several considerations to policy makers. Firstly, High Voltage (HV) Battery and the power management systems of EVs should be suitable for local climatic conditions as they are highly sensitive and must be adapted by the manufacturer for the specific country/region of use. Further, a minimum manufacturer’s warranty on the HV batteries of at least 5 years for passenger vehicles and 3 years for 2/3 wheelers should be required to protect consumers from crippling expenses and to negate premature foreign exchange outflow for defective batteries and related parts replacements, considering the extremely high costs of these parts. In addition, EV repairers should comply with globally accepted safety standards on infrastructure, including safety equipment, training, and isolation areas for vehicles/HV batteries in a hazardous state (e.g. after an accident).

To promote a sustainable path to electrification, the CMTA urged the government to establish a legal framework regarding end-of-life handling of HV batteries and other components, as if not disposed properly, HV batteries can be extremely hazardous to the environment and groundwater systems, which can also have implications to public health. It also emphasized the need for minimum technical standards of HV battery imports to avoid low quality battery imports and encouraged joint ventures with foreign companies with the technical expertise to set up sophisticated HV battery recycling/rebuilding facilities in the country.

Public infrastructure is also key for a successful mass-scale electrification. Reputed global EV manufacturers all emphasize the necessity for developing a public fast-charging network to give EV users peace of mind and allow them to embark on longer journeys. In terms of training facilities and resources for EV repairs, it is mandatory to enhance the curriculum at technical training institutes to create a pool of certified EV technicians who can cater to future EV repair demands.

Commenting on the timely topic of EVs, the CMTA Chairman, Yasendra Amerasinghe said, “Vehicle electrification if implemented will bode well for a country like Sri Lanka with distances between major towns being within the range of most modern EVs. Electrification is – without a doubt – the future, and we would like to see the authorities taking the necessary steps to create a conducive environment for sustainable electrification, as an improper roll-out can cause harm to consumers and the industry.”

In making a balanced and informed decision on electrification, the CMTA points out that policy makers should be aware that transitioning passenger vehicles to EVs while continuing with fossil fuel commercial vehicles may not have the expected impact on fuel imports as a significant proportion of fuel is consumed by commercial vehicles. The issue of the existing older passenger vehicles in the country would also need to be addressed through a scrapping or re-export policy to have an appreciable impact on the country’s fuel consumption.

Authorities should also be mindful that the import cost of an EV model is 20-30% higher than its ICE equivalent, which is only offset by the reduced fuel consumption and maintenance costs over a few years.

The year 2015 witnessed the introduction of EVs to the Sri Lankan market at extremely low import duties without much forethought and against the recommendations of the CMTA at the time. The result was an influx of grey (used) vehicles, which now are a great burden to around 5,000 EV owners due to battery failures. To date, there is no viable solution for these customers who are forced to sell their vehicles at far below market value, convert them to gasoline engines and use them with illegal registrations or continue to use them with failed batteries with a limited range of around 40-60km. Looking ahead, the CMTA suggests learning from the mistakes of 2015 and considering the recommendations provided by reputed global EV manufacturers for sustainable electrification.



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Foreign Minister defends India pacts, sidesteps transparency demand

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The press conference held at the Foreign Ministry in Colombo yesterday. From left:Arun Hemachandra, Deputy Minister of Foreign Affairs, Vijitha Herath, Minister of Foreign Affairs and Tourism and Prof. Ruwan Ranasinghe, Deputy Minister of Tourism

In a press conference marked by both clarity and pointed omission, Foreign Affairs and Tourism Minister Vijitha Herath, yesterday offered a robust defence of two controversial bilateral agreements with India but conspicuously avoided committing to tabling their full texts in Parliament.

The minister’s appearance, billed as a year-opening briefing, took a sharp turn when questioned on the strategic implications of the India-Sri Lanka Defence Cooperation Agreement and Sri Lanka’s acceptance of the Indian Pharmacopoeia.

“No Indian military camps on our soil”

Responding in Sinhala to a question posed in English, Minister Herath moved first to allay what he suggested were widespread misapprehensions about the defence pact.

“This agreement is especially for data and information exchange purposes regarding drug trafficking, drug mafias, human trafficking, and any terrorist activities that could threaten regional security and peace,” Herath stated.

He emphasised that it would also facilitate “various support related to the defence sector.”

In his most definitive assertion, aimed at quieting a persistent national anxiety, the Minister declared: “We must clearly say that there is no plan or possibility of setting up Indian defence camps on Sri Lankan soil.” He categorised the pact not as a “defence agreement” but a “defence cooperation agreement in its real sense,” claiming it creates an “advantageous position” for Sri Lanka.

He linked recent post-‘Ditwah’ cyclone disaster support from India, as well as U.S. aerial support during recovery efforts, to the frameworks established by such cooperation agreements, arguing they have proven beneficial.

Indian Pharmacopoeia: A reputation-based advantage

On the equally contentious acceptance of the Indian Pharmacopoeia – a standard synopsis for drug manufacturing – Minister Herath framed it as a logical step that formalises existing practice.

“We already import a significant share of medicines from India,” he noted. The agreement, he explained, signifies the acceptance of medicines exported by a “reputed Indian pharmaceutical company” approved by its national regulators.

He assured the public that Sri Lanka’s National Medicine Regulatory Authority (NMRA) will continue to remain the monitor. “By entering into this, no disadvantage will happen to us. Only an advantage will happen… it will only be beneficial to us,” he emphasised.

The unanswered question

Despite the detailed assurances, the Minister pointedly ignored the final and arguably most critical part of the question posed by The Island Financial Review : whether the government would table the full text of the two agreements in Parliament for transparent debate and discussion.

This omission is likely to fuel further controversy, as opposition parties, civil society groups, and independent analysts have repeatedly demanded full parliamentary scrutiny, arguing that agreements touching on sovereignty and public health mandate the highest level of public transparency.

Tourism Pride

Shifting to his tourism portfolio, Minister Herath struck an optimistic note, citing record tourist arrivals and foreign remittances in 2025 as a sign of resilient recovery post-Ditwah.

The conference also touched on global affairs. When asked about the U.S. arrest of Venezuelan President Nicolás Maduro, Herath presented a nuanced governmental position. He stated that while his party, the JVP, condemns the action, the government’s official stance is to urge respect for national sovereignty in line with the UN Charter – a reflection of the coalition’s delicate balancing act between ideological roots and diplomatic pragmatism once in governance.

Minister Herath’s explanations provide the government’s clearest public rationale yet for the India agreements, directly confronting fears over militarisation and pharmaceutical quality. However, the deliberate sidestepping of the transparency query left a communication deficit at the heart of the press conference.

High-stakes diplomacy

It reflected a perception that while the administration is willing to defend its policy outcomes, it remains reluctant to subject the processes of high-stakes diplomacy to the full glare of parliamentary and public scrutiny. As these agreements continue to shape Sri Lanka’s strategic and health landscape, the call for their full disclosure is now accompanied by a louder question about the government’s commitment to open governance.

by Sanath Nanayakkare

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‘Vehicle-Testing Can Save Lives’

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Dharmasiri Gamage, Director, Presidential Secretariat, (4th from left), receiving the proposal from Prasanna De Zoysa (2nd from left), AAC Sectoral Chairman, Road Safety and Devapriya Hettiarachchi (3rd from left), Secretary, AAC at the Presidential Secretariat.

Automobile Association of Ceylon (AAC), in collaboration with the Federation Internationale de L’ Automobile (FIA) and under the UN Decade of Action for Road Safety has been consistently engaging in road safety enhancement programs for all citizens of Sri Lanka.

Current data indicates that while over 08 million vehicles are registered in the country, only heavy vehicles (less than 20% of the vehicle population) are subjected to compulsory road-worthiness tests.

Fatal accidents due to technical failures in vehicles are on the rise and the damage to lives and property is severe.

We also understand that there is a death every three hours and eight deaths per day in road accidents. This amounts to nearly 3000 deaths in road accidents per year.

AA of Ceylon has launched the “Vehicle Testing can Save Lives” project with the advice and support given to execute our campaign by the Minister of Transport, chairman, National Council for Road Safety (NCRC), Deputy Inspector General of Police (Traffic Division), Dr. Indika Jagoda, Deputy Director (Accident Service), National Hospital, president, Lions Club of Boralasgamuwa, Metro(Lions Club International – District 306 D 2) and other stake-holders to find a workable, low / cost solution for mandatory vehicle testing in Sri Lanka.

Therefore, this project aims to educate the public on the necessity of checking essential safety features in all vehicles and the benefits of same to all road users.

AAC has therefore respectfully requested Anura Kumara Dissanayake, President of the Democratic Socialist Republic of Sri Lanka, to consider implementing the proposal we have submitted to him, to minimize fatal accidents, injuries to people and damage to vehicles and property due to road accidents and to also implement a rule to have compulsorily road-worthiness checking of all vehicles. (AAC)

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INSEE Lanka appoints new Chief Executive Officer

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Eng. Thusith C. Gunawarnasuriya

Siam City Cement (Lanka) Limited (INSEE Lanka) has announced the appointment of Eng. Thusith C. Gunawarnasuriya as its new Chief Executive Officer, effective 01 January 2026. He succeeds Nandana Ekanayake, who will continue to serve as Chairman, ensuring leadership continuity and strategic stability for the organisation.

A long-standing contributor to INSEE’s journey, Thusith has worked with the company through its evolution under Holcim (Lanka) Ltd, LafargeHolcim and INSEE, playing pivotal roles that influenced both operational progress and strategic direction.

Rejoining INSEE Lanka in January 2025 as Chief Operating Officer, he has since demonstrated exceptional leadership, driving topline growth, improving EBITDA performance, and strengthening talent development initiatives that enhanced organisational capability and business outcomes.

His expertise in business strategy, operations excellence, and supply chain transformation is well-recognised, supported by over 25 years of multi-industry and multi-country leadership experience. His career includes senior positions at Lion Brewery (Ceylon) PLC, Hemas Manufacturing, Fonterra Brands Lanka, GlaxoSmithKline, MAS Active, and DMS Software Engineering. His international exposure spans India, Bangladesh, and Thailand.

Thusith is a proud alumnus of Dharmaraja College, Kandy, and holds a BSc (Hons) in Electrical & Electronic Engineering from the University of Peradeniya, an MBA from the University of Colombo, and an MSc in Business & Organizational Psychology from Coventry University, UK. He has completed executive leadership programs at IMD (Switzerland) and the National University of Singapore. He is also a member of IEEE (US), CILT (UK), ISMM (Sri Lanka), and IESL (Sri Lanka).

Chairman’s Quote – Nandana Ekanayake:

“Thusith’s deep understanding of our business, strong operational mindset, and proven leadership make him the ideal successor to lead INSEE Lanka into the next phase of growth. His experience within INSEE and across multiple industries, positions him well to deliver on our long-term ambitions and uphold the values that define the organisation.”

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