Business
Korea – Sri Lanka diplomatic relations mark 45th Anniversary today
Korea has been a friend of Sri Lanka in its hour of need, says Ambassador Santhush Woonjin Jeong
This is an opportunity for our two Asian nations to redouble our efforts to attain regional peace and prosperity’
November 14th 2022 (today) marks the 45th anniversary of the establishment of the diplomatic ties between Korea and Sri Lanka. Issuing a press statement on the important occasion, Ambassador of the Republic of Korea to Sri Lanka, Santhush Woonjin Jeong says that he would like to celebrate the meaningful day together with Sri Lanka and Sri Lankan people.
“Since the establishment of diplomatic relations in 1977, our relationship has been robust. Korea and Sri Lanka have many common factors such as similar geographical location and historical experiences that have contributed to a deeper mutual understanding. As the Korean Ambassador, I have made numerous efforts to elevate our relations on in a whole spectrum of fields of mutual interest spanning political, economic, education, and cultural cooperation,” , he says.
The Ambassador further notes:
“When it comes to development projects, I proudly introduce the major achievements made by KOICA, EXIM bank Korea in collaboration with the Government of Sri Lanka. KOICA has conducted numerous projects with pivotal strategic goals such as education, transportation, water resources, food, and agricultural development, and successfully elevating the development of Sri Lanka. I truly believe that as a reliable friend, Korea is a trustworthy partner of Sri Lanka to meet the current needs of national development. With these as momentum, the bilateral ties are expected to widen and deepen further in the coming years.”
“Sri Lanka is a priority official development assistance cooperation partner country and also one of the top five nations to benefit from its Economic Development Cooperation Fund (EDCF). Sri Lanka is so precious to Korea. The investment in various ODA projects and grants benefitting Sri Lanka since 1987 exceeds US$ 900 million in a total of concessional loans through the Export-Import Bank of Korea (Korea Eximbank). For instance, the Framework Arrangement enabling the Sri Lankan Government to obtain soft loans of a value of up to $500 million (USD) from the Economic Development Cooperation Fund (EDCF) of the Korean Government was set up for the years 2020 to 2022. At the same time, the New Village Movement known as the Saemaul Foundation in Sri Lanka and KOPIA has achieved success in developing rural livelihood through meaningful initiatives implemented in Sri Lanka.”
“I believe that deepened economic engagement is important to harness synergetic opportunities in trade and investment. Sri Lanka is strategically valuable considering its geopolitically significant location, abundance of natural resources, and skilled human resources. Korea’s capital and state-of-the-art technology will be complementary to create the perfect synergies for our two countries to advance bilateral economic cooperation. The trade volume between Korea and Sri Lanka has increased by 30-fold since its establishment of diplomatic ties in 1977. Korea was one of the biggest investors in Sri Lanka in the 1990s. Like the Korean journey towards economic development, well known as the ‘the Miracle on the Han River’ of Korea, I would like to witness Sri Lanka work ‘a Miracle on the Kelani River’ in the near future. Challenge is another chance. It is now time to realize the untapped potential of this beautiful country and achieve our common economic goals together. KOTRA in Colombo, a specialized agency for commercial ties, is working very hard to consolidate our bilateral economic cooperation.”
“The ongoing labour cooperation is a very important aspect of our bilateral relations. Around 25,000 Sri Lankan workers are presently employed in Korea, contributing to economies of our two countries. Before the COVID-19 pandemic, they have transmitted around 520 million USD annually to Sri Lanka in 2019. The EPS centre in Colombo has contributed to the facilitation of migrant employment and promotes the bilateral labour relations. Sri Lankan employees in the Republic of Korea are a great asset to strengthen economic and commercial ties of both countries.”
“Cultural cooperation is also a key pillar of our bilateral cooperation. Korean dramas, movies, music and cuisine have attracted a global audience including Sri Lankans. I thank all Sri Lankans for your interest and enthusiasm shown for the Korean culture, cinema, dramas, and cuisine. In commemoration of the 45th anniversary of diplomatic relations between Korea and Sri Lanka, the Korean Embassy organized a series of special cultural events like the Korean Lantern Festival, Quiz on Korea, K-pop World Festival and Korean Ambassador’s Taekwondo Championship, Korean Film Festival and the Virtual Tour to Korea 2022. The love and support shown by Sri Lankans for these events is a source of great motivation and encouragement for the Korean Embassy. I hope that you will continue to stand with us and promote the Korean culture. Of course, I would like to make more efforts to promote cooperation between our two countries in the fields of movies, dramas and culture.”
“Reflecting on the growing interest in the K-wave among the Sri Lankan people, Korean language has been officially adopted as a foreign language in the advanced level curriculum from last year and students can sit for the Korean language examination in the university entrance examination by 2023.The Sri Lankan Education Ministry’s proactive initiatives to adopt the Korean language are well appreciated and commended by Korea.”
“I also mention that Korea has been a friend of Sri Lanka in its hour of need. International cooperation and solidarity were key factors to overcome global challenges that the world faced. Korea made utmost efforts to join the global efforts to respond to the COVID-19 pandemic as a responsible member of the international community. The Republic of Korea has stood in solidarity with Sri Lanka to help strengthen the government of Sri Lanka’s national response to the pandemic. Under the “stay strong” campaign, Korea has been a friend indeed in times of need, by donating around $3 million worth of equipment to combat the COVID-19 virus in Sri Lanka in the last two years.”
“I believe that the 45th Anniversary of the establishment of diplomatic relations will be a great opportunity for our two Asian nations to redouble our efforts to attain regional peace and prosperity. Korea is one of the most significant countries which can assist Sri Lanka in realising the vision for its future. I look forward to the next 45 years to make our bilateral relations more prosperous and productive.”
“As the Ambassador of the Republic of Korea like the meaning of my Sri Lankan name “Santhush,” I would like to carry happiness to Sri Lanka. I love Sri Lanka. I love Sri Lankan people. On this occasion of celebrating this important milestone, on behalf of the government and the people of the Republic of Korea, I take this opportunity to wish every success, peace, and prosperity to the government and the friendly people of Sri Lanka. I will closely work with all of you to achieve our common goals.”
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.
Business
‘Sri Lanka’s digital industry: Resilient, adaptive, and poised for growth amid policy shifts’
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.
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