Business

IPS makes its proposals for Budget 2022

Published

4 years ago

2021/11/8

Ahead of the presentation of the National Budget for 2022, the Institute of Policy Studies of Sri Lanka (IPS) outlines some policy areas of concern and puts forward proposals to be considered for inclusion in the forthcoming Budget.

Please note that this is Part-1 of IPS proposals for the Budget on health, education, human resources, women, vocational training, persons with disabilities and migration.

Health Improving child nutrition

An IPS study on child malnutrition reveals that the ‘life cycle effect’ is one of the main contributors to the high prevalence of child malnutrition, especially among the poor. The study shows that dietary issues are caused by food insecurity and the lack of awareness about proper nutrition among the poor. Among the country’s several nutritional programmes, the Maternal and Child Health (MCH) supplementation programme by the Family Health Bureau (FHB) is one of the most beneficial, as it covers the entire life course interventions, as recommended by the World Health Organization (WHO). However, this is the programme with the least resources at present.

The country’s annual public investment on key nutrition-specific interventions is approximately Rs. 15 billion. Of this, 40% is absorbed by the school meal programme, followed by the pregnant mother’s food allowance programme (37%) and the Thriposha programme (16%). The FHB medicine and supplements in the MCH programme accounted for only 5%.

Recommendation

Streamline existing nutrition programmes to focus on the most effective ones to improve nutrition outcomes. Expand budgetary allocations for the MCH programme and provide targetted benefits to the most vulnerable in other nutrition programmes. There is potential to gain some fiscal space by changing the supplementary feeding programme (Thriposha), for pregnant and lactating women, to target pregnant women at risk rather than all. Likewise, pregnant mother’s food allowance programme should be targetted in deprived regions.

Reducing smoking prevalence

Although smoking rates have come down considerably over time, still more than a quarter of males are smokers, and smoking remains a significant health threat killing more than 20,000 Sri Lankans, annually. Recent studies show that smoking is currently prevalent among selected population groups. Thus, there is a need to target specific groups (e.g., construction workers, drivers, youth groups those who are not in schools or any other education institute) to reduce smoking prevalence.

Recommendation

Launch targetted programmes to build awareness on the benefits of smoking cessation and provide cassation support to existing smokers. Existing programmes can be realigned to focus on high prevalence groups, so they do not impose an additional burden on government expenditure. But such programmes will help to reduce the tobacco smoking prevalence and reduced tobacco smoking-related illnesses, deaths, and the burden of cost.

Education Improving access to quality early childhood education

Early Childhood Care and Education (ECCE) sector is one of the most important sectors of education, providing a solid foundation for a child’s education trajectory. However, access to ECCE education in the country is low. In 2019, only 55.6% of 3 to 5-year-olds were enrolled in preschool education in the country. Further, there are large inequities in access to pre-school education with access lower in rural and estate sectors and among poorer households. Public presence in this sector in the provision of core as well as support services, such as curriculum development and teacher training, is inadequate.

Recommendation

Allocate public funds to implement ECCE policies that have been developed to improve access to the ECCE sector for low-income households, and to align ECCE education with general education. Government involvement is important in improving access to children from under-privileged backgrounds, through the provision of scholarships, or by setting up ECCE centres where there is low supply of ECCE centres. The functioning of ECCE should be monitored to improve quality.

Human Resources Development Improving access to quality vocational training

Scientific breakthroughs in a spectrum of fields, such as genetics, artificial intelligence, nanotechnology, and 3D printing, are feeding into innovations that redefine how people live, work, and interact with each other. These innovations are constantly creating and altering production processes and revolutionising the operations of a large spectrum of industries. These transformations are also restructuring labour markets and affecting labour markets in multiple ways. With the growing the demand for high skilled workers, tertiary level skills development is critical. However, the effectiveness of the Tertiary Education and Vocational Training (TVET) institutions in improving access to TVET is limited due to resource gaps, teacher shortages and governance issues.

Recommendation

Streamline the public sector provision of TVET education. Money saved from this can be used to provide eligible candidates financial support to participate in the most effective TVET programmes (public, private or joint) in the trades of their choice. Partnerships with the private sector and industry training can alleviate problems of lack of access to high-tech equipment. Invest in public sector capacity for provision of support services to the sector such as monitoring and evaluation, curriculum development, and the quality assurance of TVET institutions to improve the efficiency of the sector.

Women Increasing female labour force participation (FLFP)

Labour market data show that more women have become economically inactive due to COVID-19, lowering the already FLFP rate. As the COVID-19 related restrictions are relaxed, there will be more opportunities for women to participate in the labour market.

Recommendation

Provide training and job matching programmes to facilitate skills acquisition and improving employability, especially for women. Online training programmes can be facilitated by industries with labour shortages, with possible job opportunities for those successfully trained. These programmes can be coordinated by the institutions under the purview of the Tertiary and Vocational Education and Training (TVET) sector.

Persons with Disabilities Ensuring financial security of persons with disabilities (PWDs)

The cash assistance programme to assist PWDs implemented by the National Secretariat for Persons with Disabilities (NSPD) covers only a fraction of PWDs from low-income households. As of May 2020, the disability assistance programme covered 72,000 persons while another 37,492 persons were in the waitlist. Moreover, another 14,149 PWDs were identified during the first wave of the pandemic by the rural committees set up at the divisional level, as eligible for the cash assistance.

Recommendation

Assist all PWDs, especially those from low-income households to ensure their economic and financial security. Extending benefits to current waitlisted persons alone will require an additional budget allocation of around Rs 2,250 million in 2022 while extending it to those identified by the rural committees too (subject to a re-assessment of their eligibility) will require a further allocation of around Rs 849 million.

Migration Increasing reintegration support for returning migrant workers

Available estimates indicate that by early January 2021, a total of 128,470 Sri Lankans wanted to return, while only 60,470 or 47% had been repatriated. IPS pointed out that “such limited capacity to repatriate and delays in repatriation is the first indication of weaknesses in Sri Lanka’s preparedness for the return and reintegration of migrant workers in a crisis”. Limited social and psychosocial return and reintegration support for returnees restrict the capacity of a returned migrant worker to reintegrate with his family and community and contribute to the economy. Reintegration issues experienced during the pandemic were amplified by the low base level of return and reintegration support service structures that were operational in Sri Lanka before the pandemic.

Recommendation

Implement the existing policy on ‘Return and Reintegration’ introduced in 2015. A critical implementation aspect of this policy is integrating reintegration support policies into the mandates of the relevant ministries and providing necessary budgetary allocations for the same. This will result in faster and more successful reintegration of returnees to their families, communities and the economy.

Addressing gaps in recruitment sector for foreign employment

Given that the number of migrant workers has reduced drastically during the pandemic, concerted efforts will need to be made to facilitate foreign employment, when the situation improves. Findings from a study conducted by IPS shows several areas to focus on improving business practices of recruitment agents would be beneficial for promoting foreign employment. The absence of an effective international marketing strategy to promote Sri Lankan migrant workers to foreign employers have led to the recruitment agents micro-managing recruitments by resorting to unfair competitive behaviour with agents from other countries of origin. This leads to additional costs for the agent which is likely to be passed to potential migrant workers seeking employment.

Recommendation

Establish a centralised and effective international marketing strategy to promote migrant workers from Sri Lanka. This should be coordinated by the Ministry of Foreign Affairs and the State Ministry of Foreign Employment Promotion and Welfare, with necessary resources and budgetary allocations. The above proposal will improve the efficiency of recruitment agents. It will also indirectly contribute to increasing remittances.

All News Advertisement

Business

CDS accounts on the increase, crosses one million accounts

Published

24 mins ago

2026/03/7

Thilina Walpola

Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has reached a milestone as total registered accounts surpassed the 1 million mark. This achievement coincides with the approach of the organization’s 35th anniversary in September 2026, marking three and a half decades of providing depository infrastructure for the Sri Lankan capital market.

Since its inception in 1991, the CDS has held the distinction of being the first depository in the South Asian region. In its core capacity as a depository, the institution is responsible for holding a wide array of securities including shares, debentures, corporate bonds, and units belonging to investors in electronic form.

The crossing of the one million account threshold also reflects the aggressive broad basing of the retail investor market over the past five years. This expansion is largely attributed to the comprehensive digitalization of the CSE, which has created accessibility for individuals across the country. Digital tools such as the CSE Mobile App and the “CDS e-Connect” portal have revolutionized how investors interact with the stock market, providing them with real time access to their holdings and a seamless interface for account management. The “CDS e-Connect”, originally launched in 2016 and revamped in 2021, has become a one stop shop for stakeholders, by offering services such as client profile management, real time balance and transaction viewing, eNomination facility, monthly statements and newly introduced dividend payment history viewing option. From 2016, by offering eStatements and SMS alert facilities CDS ensures transparency and security for the CDS accountholders. By decentralizing account openings and introducing online facilities in 2020, the CDS successfully brought the stock market to the fingertips of the general public, moving away from the traditional, paperwork heavy processes that once characterized the industry.

A critical pillar of this 35-year history was the 2011 launch of the full dematerialization drive. This initiative was designed to significantly reduce the movement of physical certificates, which were prone to loss, damage, and forgery. Today, the success of this drive is evident as the CDS holds 97 percent of listed equity and 100 percent of corporate debt in scripless form. This near total transition to electronic records has provided a secure and accessible service environment. The Central Control Unit plays a vital role, ensuring that all functions performed by the depository and its participants align with strict rules and regulatory guidelines. By identifying operational, financial, and market risks early, the CDS maintains the integrity of the ecosystem and fosters trust among both domestic and international investors.

Beyond its primary depository functions, the CDS has significantly expanded its influence through the Corporate Solutions Unit (CSU), established in 2017. The CSU was created to standardize and elevate the benchmarks for corporate action services in Sri Lanka and has since grown through the strategic acquisition of PW Corporate Registrar arm. This diversification allows the CDS to expand registrar services and manage corporate actions for both listed and unlisted companies, providing a holistic suite of services that includes the distribution of dividends, rights issues, and e-applications for Initial Public Offerings (IPOs). The digitization of issuer services has been a hallmark of the CSU’s work, introducing innovations such as eDividend payments, eWarrants, and eNotices. These advancements have streamlined the process for issuers while ensuring that shareholders receive their entitlements promptly and securely.

The strategic outlook for the CDS is now centred on the newly formed Research and Development Unit, which is essential to the organization’s vision for the future. This unit functions as a Project Management Office and is responsible for developing innovative services. By cultivating strategic alliances and international collaborations, the R&D unit ensures that the CDS remains a future forward institution capable of adapting to the evolving needs of the global financial sector.

As the CDS looks toward its 35th year of service, it remains focused on digital transformation, strategic partnerships that power progress, new service offerings and enhanced international relations. The integration of new technologies continues to ensure robust infrastructure for the next generation of market participants.

Head of CDS Nadeera Athukorale commenting on the vision of the CDS, remarked “By balancing its core depository duties with non-core registrar and consultancy services, the CDS has positioned itself for long term sustainability and industry leadership.”

The achievement of one million accounts serves as a testament to the resilience and adaptability of the Sri Lankan capital market infrastructure, demonstrating CDS’ ability to facilitate a growing digitized market while continuing to serve as the backbone of the nation’s investment landscape. (CSE)

Business

TONIK set to become next Sri Lankan hospitality brand reaching the global stage

Published

30 mins ago

2026/03/7

Thilina Walpola

Garfield Bungalow by TONIK

TONIK, a new hospitality venture under Sri Lanka’s Acorn Group, has unveiled its vision to place culture, storytelling and design at the heart of island exploration, positioning itself as the next Sri Lankan hospitality brand to achieve global recognition.

Built on the Acorn Group’s decades of expertise across aviation, travel, logistics and leisure in multiple Asian markets, TONIK aims to elevate Sri Lanka’s tourism by translating the “soul” of destinations into curated experiences. The brand’s philosophy, “Every Stay Is a Story”, treats villas and boutique hotels as “living narratives” shaped by architecture, memory, craft and community.

The venture addresses a key market gap: while Sri Lanka features exceptional independent villas, many struggle with visibility and global reach. TONIK seeks to resolve this by amplifying each property’s unique value proposition – transforming distinctiveness into revenue -generating potential for owners.

“TONIK’s philosophy aligns with the evolution of our industry- where authenticity and meaningful experiences are no longer optional but essential,” said Harith Perera, Partner at Acorn Group. “Sri Lanka’s narrative deserves platforms that elevate its voice globally.”

For property owners, TONIK offers access to Acorn’s intelligence networks across the Maldives, Middle East, Europe and Asia, including insight into High-Net-Worth travel patterns.

CEO Sundararajah Kokularajah said: “By nurturing properties as living narratives, we aim to shape a new chapter for tourism – authentic, future-ready and deeply Sri Lankan.”

By Sanath Nanayakkare

Business

SDB bank relocates Warakapola branch to enhance customer experience

Published

34 mins ago

2026/03/7

Thilina Walpola

SDB bank relocated its Warakapola Branch to a new location with a modern, fresh look and ample parking, further strengthening its commitment to delivering an enhanced, customer-centric banking experience. The newly refurbished branch, located at No. 221/E, Colombo Road, Warakapola, will officially open its doors to customers.

The relocation reflects SDB bank’s ongoing efforts to adapt its branch network to today’s banking requirements, ensuring clients enjoy a refreshed, welcoming, and efficient service. The upgraded branch features contemporary design and improved facilities, providing greater convenience and a seamless banking experience for individuals, entrepreneurs, and businesses in the Warakapola area.

As part of its continuous transformation journey, SDB bank has prioritised innovation and service excellence in reimagining the Warakapola Branch. The new premises have been thoughtfully designed to meet evolving customer needs while fostering stronger engagement with the local community and business sector.

Kapila Ariyaratne, Executive Director / Chief Executive Officer of SDB bank, stated, “The relocation of our Warakapola Branch reflects SDB bank’s dedication to providing our customers a modern and enhanced banking experience with convenience and personalised service. This modern space is designed to meet evolving needs while reinforcing our strong ties with the local community. We remain committed to delivering innovative and customer-focused financial solutions that support regional and national growth.”

The enhanced branch environment is expected to serve both existing customers and new clients in the region, reinforcing SDB bank’s growing island wide presence. Through this relocation, the Bank continues to demonstrate its commitment to sustainable growth, service excellence, and meaningful community engagement.

SDB bank invites its valued customers and the Warakapola community to visit the new branch and experience the enhanced facilities firsthand.

A future-ready bank, dedicated to offering customer-centric and comprehensive support tailored to each individual’s needs, SDB bank is a licensed specialized bank regulated by the Central Bank of Sri Lanka, with a listing on the Main Board of the Colombo Stock Exchange and a Fitch Rating of BB +(lka).

Through the network of 94 branches island-wide, the bank provides a comprehensive range of financial services to its Retail, SME, Co-operative, and Business Banking clients across the country. Environmental, Social, and Governance (ESG) principles are deeply ingrained in SDB bank’s ethos, with a steadfast focus on uplifting local communities and businesses through sustainable practices. The bank is particularly committed to promoting women’s empowerment, sustainable development of SMEs, and digital inclusion, aiming to propel Sri Lanka to new heights.

Ceremonial opening of SDB bank Warakapola Branch

From left to right,

Binesh Aravinda – Head of Branch Banking – SDB bank,.A.D.Walisinghe – Chairman Kegalle Sanasa District Union, Kapila Ariyaratne – Executive Director/ Cheif Executive Officer – SDB bank, Chitral De Silva – Cheif Business Officer – SDB bank