Public Utilities Commission of Sri Lanka (PUCSL) analysis shows that the running cost for mini- hydro projects is some Rs 25 million per year, making them a financially sustainable solution for energy generation, in comparison to the extremely high running costs borne by thermal power plants operated by the Ceylon Electricity Board.

A senior official told The Island Financial Review that in the pursuit of sustainable and cost-efficient energy solutions, mini- hydro projects have emerged as a viable alternative, particularly for the private sector. “Small-scale hydroelectric power can be managed effectively with minimal operational costs, he added.

The official noted that mini hydro projects are typically small-scale hydroelectric power stations that generate electricity by utilizing natural water flow without the need for large dams or reservoirs. They offer a reliable source of renewable energy with lower environmental impact compared to larger hydro projects.

The private sector has been actively involved in managing mini- hydro projects, recognizing their potential to provide a stable revenue stream while contributing to clean energy production. “The scale of these projects aligns well with private sector capabilities, as they require relatively lower capital investment and can be efficiently managed by smaller teams, he added.

Moreover, the official said, with advancements in technology and increasing emphasis on renewable energy, mini- hydro projects offer opportunities for public-private partnerships. Incentives such as tax benefits, favorable tariffs, and government support for renewable energy further enhance the attractiveness of these investments.

“Beyond financial feasibility, mini- hydro projects bring several long-term benefits. They contribute to energy security by reducing dependence on fossil fuels and mitigating the impact of power shortages. Additionally, they have minimal environmental disruption compared to large-scale hydroelectric plants, preserving local ecosystems and water resources, he added.

By Ifham Nizam

Hatton National Bank PLC (HNB) reaffirmed its commitment to fostering financial inclusion and empowering women entrepreneurs by hosting a corporate event in celebration of International Women’s Day 2025. The program brought together over 300 microfinance entrepreneurs, alongside business leaders, financial experts, and HNB representatives, creating a platform for knowledge sharing and empowerment. The initiative aimed to equip women with the insights and resources needed to drive sustainable business growth and strengthen their entrepreneurial journeys.

Held under the theme of Empowerment and Financial Literacy, the event featured insightful discussions, educational sessions, and an engaging panel on financial management and entrepreneurship. Women entrepreneurs from across the country participated in the event, sharing their experiences and learning from industry experts on how to navigate challenges and expand their businesses.

HNB’s Managing Director/CEO, Damith Pallewatte, addressed the gathering, reiterating the bank’s role in fostering inclusive economic growth and empowering women-led enterprises.

“Today, there is a growing trend of grassroots-level women engaging in entrepreneurship, which is a crucial factor for the country’s progress. Recognizing the importance of empowering women, HNB has taken steps to create vast opportunities for them. Through initiatives focused on financial literacy, empowerment, introducing role models, and strengthening networks, we aim to contribute to the advancement of women and support their journey toward success.”

The event featured a series of expert-led sessions designed to equip women entrepreneurs with the knowledge and tools to make informed financial decisions. A financial literacy program conducted by Keerthi Dunuthilaka, Deputy Director of the Central Bank of Sri Lanka (CBSL), provided key insights on managing and growing businesses. Viranga Gamage, HNB’s Head of Deposits, presented investment options tailored for women entrepreneurs, while Raman Jeikumaar, Senior Manager – Tax & Group Accounting, simplified tax management for SMEs. Dr. Hashi Peiris from the University of Kelaniya delivered an inspiring session on holistic empowerment, and entrepreneur Shamali Wickremasinghe shared her journey to success. Additionally, Sanesh Fernando, Chief Business Officer of HNB Assurance PLC, highlighted the importance of life insurance in securing financial stability for business owners.

The digital services sector in Sri Lanka has witnessed new tax measures introduced in the latest national budget, which mark a significant shift in the industry’s financial landscape. While these measures present challenges, the industry remains steadfast in its commitment to growth, innovation, and resilience. The Ministry of Digital Economy, in collaboration with key industry stakeholders, is actively engaging to ensure that Sri Lanka remains a competitive and attractive hub for digital services, both regionally and globally.

The digital sector has long been one of the most dynamic and future-ready industries in Sri Lanka, withstanding economic crises, global downturns, and disruptive technological shifts. Even during the most difficult periods, such as the COVID-19 pandemic and the economic crisis that followed, the industry remained robust, leveraging innovation and adaptability to sustain growth. The introduction of new tax policies, while impacting stakeholders, is being met with a proactive approach by both the Government and industry leaders to mitigate negative consequences and capitalize on long-term opportunities.

A key aspect of the Government’s fiscal strategy has been to ensure a level playing field by requiring all companies—both local and international—to contribute to the nation’s economy through taxation. Historically, non-domiciled digital service providers had an advantage over local companies, as they were not required to pay taxes for services offered within Sri Lanka. This policy shift is expected to generate additional revenue for the Government while ensuring fairness in the market. However, concerns have been raised regarding the potential implications of increased taxation on digital exports and freelancers, as this may encourage relocation of businesses and banking operations to more tax-friendly jurisdictions. Despite these challenges, the Ministry of Digital Economy, in collaboration with key industry organizations, is focused on implementing measures to sustain and enhance the growth of Sri Lanka’s digital economy. Several strategies are being explored to provide relief and long-term benefits to industry players. These include concessionary loan schemes, investment in skill development, improved digital infrastructure, and the creation of IT parks and co-working spaces to foster innovation and entrepreneurship.