Business
Transforming tobacco farming in Sri Lanka: A value chain analysis
A new publication from the Institute of Policy Studies of Sri Lanka (IPS) finds strong evidence that tobacco farming is not a particularly lucrative enterprise for most smallholder tobacco farmers in Sri Lanka. The study notes that tobacco farmers can earn better profits from cultivating other crops like chilli, brinjal, carrot, bitter gourd, cabbage and big onion. The IPS study examines the potential for transforming tobacco farming through possible alternative cropping strategies in Sri Lanka. As such, the findings of this study will be of particular relevance to policymakers in Sri Lanka in their efforts and strategies on shifting farmers away from tobacco production to more economically, socially and environmentally sustainable crops.
The latest IPS publication, ‘Transforming Tobacco Farming in Sri Lanka: A Value Chain Analysis’, is authored by Nimesha Dissanayaka, Dilani Hirimuthugodage and Dr Manoj Thibbotuwawa. As part of a drive to reduce tobacco usage, the Government of Sri Lanka (GOSL) declared in 2017 that tobacco farming would be banned in the country by the end of 2020 and initiated a program to convert tobacco farmers to alternative crops. However, the timeline for the ban has already lapsed without desired outputs. Although the GOSL presently monitors tobacco cultivation, it does not support tobacco production as similar to the other crops cultivated in Sri Lanka. The latest statistics indicate a significant decline in both the tobacco cultivated area and production, leaving only 1,142 hectares, a mere 0.04 per cent of agricultural land and a production of 9,224 MT in 2020. Thus, this research explored the possibilities of transforming tobacco farming in Sri Lanka using secondary and primary data from a sample survey. The study finds several crucial features of tobacco farming that should help policymakers better evaluate any potential of transforming into alternative cropping strategies.
The study presents the following recommendations, which are based on a four-element framework- identifying alternatives, enhancing productivity, facilitating commercialisation, and strengthening policy:
The National Agricultural Research System (NARS) should be deployed to determine the suitability of identified alternatives considering production, marketing, commercialisation, and policy potential.
New technologies that have the potential to enhance agricultural productivity and income and to build the resilience of farmers should be developed and applied through timely and reliable extension services.
Investments should align with inclusive business models and value chains such as Public-Private-Producer-Partnerships (4Ps) to facilitate commercialisation. Further, the farmer organisations could be strengthened to involve in agriculture marketing and build linkages with modern value chains.
Strengthening the policy framework to create an enabling environment for these new livelihoods and business strategies through targeted policy and resilience-building action is vital. These include developing the rural agricultural financial markets and financial literacy of farmers that can further incentivise small farmers.
The authors note that these supply-side measures could be complemented with demand-side measures to disincentivise the manufacturers, such as laws, penalties and taxes to prevent existing non-tobacco farmers from joining the industry. They further stressed that continuing price increases through tobacco taxation should be adopted with greater awareness creation.
Business
SLT-MOBITEL driving Sri Lanka’s economic resilience through digital infrastructure
Corporate accolades underscore the alignment between its operational excellence and national development
In an era where national competitiveness is intrinsically tied to digital connectivity, strengthening the country’s digital backbone has become an urgent priority. Within this context, the evolving role of Sri Lanka’s leading telecommunications provider, SLT-MOBITEL, offers valuable insight into how technological infrastructure can underpin broader economic resilience.
Telecommunications and digital networks are foundational to economic transformation. By expanding high-speed broadband access, upgrading enterprise cloud capabilities, and bridging the urban-rural connectivity divide, SLT-MOBITEL helps reduce business transaction costs, streamline supply chains, and enable micro, small, and medium enterprises to reach global markets.
Recent corporate accolades further underscore this alignment between operational excellence and national development. SLT-MOBITEL’s triple triumph at the National Business Excellence Awards 2026 – winning in the Infrastructure and Utilities sector, Performance Management, and ICT Services categories – highlights its growing impact. Notably, the recognition of eChannelling’s contributions to digital healthcare reflects a broader strategic pivot toward integrated technology solutions.
“Institutional efficiency of this nature is critical for attracting foreign direct investment, as global partners increasingly assess a country’s digital maturity and systemic stability before committing capital,” noted industry observers.
Moreover, the company’s transition from a conventional telecom utility to a comprehensive digital solutions provider aligns seamlessly with Sri Lanka’s national digitalisation agenda. As the country pursues public sector modernisation, enhanced e-governance, and a competitive knowledge economy, the private sector must step up to deliver secure, scalable, and future-ready networks. Investments in data centres, cybersecurity frameworks, and advanced ICT infrastructure act as strategic buffers, ensuring that Sri Lanka’s economic apparatus remains agile and resilient amid future global uncertainties.
However, industry experts caution that while these achievements are commendable, SLT-MOBITEL still has a considerable distance to cover in fully enabling a truly digital economy.
Business
Port City Colombo strengthens Gulf investment ties at Dubai diplomatic engagement
Port City Colombo (PCC) took a prominent role as Platinum Sponsor at the second edition of Sri Lanka Beyond Your Dreams, a high-level diplomatic and investment engagement hosted by the Consulate General of Sri Lanka in Dubai and the Northern Emirates. The event, held on 2nd September 2026 at the Hilton Dubai Al Habtoor City, brought together over 400 senior UAE-based business leaders, investors, diplomats, and institutional stakeholders, alongside Sri Lanka’s most senior government representatives.
The gathering was graced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, as Guest of Honour, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism. A high-level Sri Lankan delegation – including the Secretary to the Prime Minister, the Chairman of the Board of Investment, the Chairman of the Export Development Board, and the Director General of Commerce – underscored the government’s strong commitment to deepening economic diplomacy with the UAE.
In his keynote address, Minister Herath reaffirmed the centuries-old ties between Sri Lanka and the Arab region, emphasising the UAE’s vital role as a key economic partner. He stressed the urgency of finalising a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which would establish a robust framework to elevate trade, investment, and bilateral cooperation. Declaring Sri Lanka “open and ready for business,” he positioned Port City Colombo as the physical embodiment of this economic mission – a modern Special Economic Zone (SEZ) with a dedicated legal framework and competitive incentives, offering UAE investors a natural gateway to South Asia while maintaining strong Gulf connectivity.
Business
American Premium Water strikes Gold at Dragons of Sri Lanka 2026
American Premium Water has secured four wins at Dragons of Sri Lanka Awards 2026, including three Gold Dragons and one Black Dragon, marking a significant milestone for the brand following its relaunch last year.
Part of the prestigious Dragons of Asia awards, Dragons of Sri Lanka brings the program’s regional platform to the local market, celebrating creative and effective marketing communications, with entries evaluated on strategic thinking, creativity, execution and impact. Established in 2000, Dragons of Asia is one of Asia’s premier results-driven marketing awards programs.
For American Premium Water, the achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories. In the distinction of Gold Dragons, American Premium Water was recognized across three categories including Product Launch or Re Launch, Cause, Environment or Sustainability and Creative Excellence while the Black Dragon was awarded in recognition of Small Budget.
Competing alongside leading brands and agencies in Sri Lanka, American Premium Water’s four wins demonstrate the strength and effectiveness of its recent work. Winning three Gold Dragons across three distinct categories highlights the breadth of the brand’s achievements, while the Black Dragon for Small Budget further emphasizes its ability to create meaningful impact through focused and efficient investment.
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