Business
A Lost Development Opportunity: Regional integration to empower Sri Lankan women
Dr Lakmini Fernando is a Research Fellow at IPS with primary research interests in Development Economics, Public Finance and Climate Change. She has expertise in econometric data analysis, research design and causal methodologies. Dr Fernando holds a BSc in Agriculture from the University of Peradeniya, a Master of Development Economics (Advanced) from the University of Queensland, Australia and a PhD in Economics from the University of Adelaide, Australia.
Sulochana Silva is a Research Assistant at the Institute of Policy Studies of Sri Lanka (IPS). She holds a BSc (Hons) in Agricultural Technology and Management specialising in Applied Economics and Business Management from the University of Peradeniya. Her research interests are agriculture policies and institutions, environment and natural resource policies, food security and climate change.
By Dr Lakmini Fernando and Sulochana Silva
On average, women are paid approximately 20% less than men in Sri Lanka.
South Asia will take 149 years to achieve full gender parity, while this is 67 and 95 years for Europe and North America, respectively.
Providing equal employment opportunities for men and women can enable South Asia to enhance incomes by 25%.
An IPS study highlights the limited success of regional integration in stimulating growth and reducing gender inequality in South Asia and offers a set of recommendations for more gender-sensitive policy reforms across sectors.
Inequality results in adverse economic, social and political consequences. Unlike the advanced economies, improvements in education, fertility and incomes have not been able to enhance women’s labour force participation in Sri Lanka. Gender equality is a shared vision for social justice. Thus, addressing gender inequality is crucial to achieve stronger and more sustainable development. While regional integration is seen as a potential development strategy to promote inclusive and sustainable growth and efforts toward women’s economic empowerment, gender equality tends to be sidelined in such discussions. Thus, identifying and implementing the right policy mix for meaningful regional integration is vital in creating gender inclusive sustainable growth.
The Impact of Greater Economic Opportunities for Women
Greater economic opportunities for women create a domino effect. In South Asia, equal employment opportunities for men and women are estimated to enhance incomes by 25%, including increased intraregional trade of USD 44 billion. Yet, despite the improvements in education and health outcomes, low women’s economic participation remains a critical development challenge for developing economies including South Asia. In 2021, female labour force participation was 22% and 32% for South Asia and Sri Lanka, respectively, while all other regions except the Middle East and North Africa (18%) recorded more than 50% participation. Also, a gender wage gap of 24% indicates that on average, women are paid approximately 20% less than men in Sri Lanka. To achieve gender parity, South Asia will take 149 years, while this is 67 and 95 years for Europe and North America, respectively.
Regional Integration: Current Challenges and Opportunities
Unlike South Asia, other regions like East Asia, Europe and North America are harnessing the potential benefits of regional integration by developing strong relationships with their neighbours. Intraregional trade accounts for 50% of total trade in East Asia and 22% in Sub-Saharan Africa, but only 5% in South Asia. Intraregional trade as a share of regional gross domestic product (GDP) is only 1% in South Asia while it is 2.6% and 11% in Sub-Saharan Africa and East Asia and the Pacific, respectively.
South Asian regional integration has been restricted mainly by high tariff and non-tariff measures, lack of trust and political will, weak policy implementation and poor infrastructure. Although the impacts are asymmetric, deeper regional integration benefits any country. Consumers gain access to cheaper goods and services; producers and exporters gain access to inputs, investment and production networks; and firms gain market access for goods and services.
Reforming Stagnating Dimensions of Regional Integration Toward Gender Inclusive Growth
To promote gender-inclusive growth, a recent IPS study shows that it is essential to improve the stagnating dimensions of regional integration. This process is complex and varies by country due to its multidimensional nature. There are six key dimensions: trade and investment, movement of capital, regional value chains, infrastructure and connectivity, people’s mobility and legal and institutional basis for international policy cooperation.
Evenly distributed dimensions lead to better regional integration and higher women’s economic participation. With the most evenly distributed dimensions, the EU is recognised as the most advanced and consistent in regional integration with more than 50% women’s economic participation.
In contrast, South Asia’s significantly uneven dimensional distribution makes it one of the least integrated and lowest women’s economic participating regions in the world. South Asia focuses more on infrastructure and connectivity and movement of people and less on money and finance. Similarly, Sri Lanka’s regional integration is impacted heavily by infrastructure and connectivity and this is no surprise as nearly 60% of public investment has been allocated to infrastructure development in the last few decades.
(To be Continued)
Business
DIMO KNIGHTS 2026 Reinforces a Culture of Recognition and Growth
DIMO celebrated DIMO KNIGHTS 2026, recognizing employees whose exceptional dedication, leadership, innovation, and commitment continue to shape the organization’s success. More than an employee recognition event, DIMO KNIGHTS reflects DIMO’s unwavering commitment to cultivating a workplace where people are empowered to thrive, reinforcing the Employee Value Proposition of ‘Making Work Enjoyable and Rewarding’ while bringing its Corporate Purpose of Fuelling Dreams and Aspirations to life.
Held under the theme “Illuminating Leadership, Inspiring Achievement,” the event celebrated individuals who exemplify DIMO’s values and inspire excellence across the organization. By recognizing those who consistently go above and beyond, DIMO continues to foster a high-performance culture where people are empowered to innovate, lead, and create meaningful impact.
A highlight of the evening was the keynote address delivered by Mr. Ravi Kant, former Managing Director and Vice Chairman of Tata Motors India, who shared valuable insights on leadership, organizational transformation, and building resilient organizations capable of sustaining long-term success.
Commenting on the event, Ms. Dilrukshi Kurukulasuriya, Executive Director / Chief Human Resources Officer of DIMO, said: “Our Tribe is the driving force behind DIMO’s continued success. DIMO KNIGHTS is more than a celebration of outstanding performance; it is a reflection of the culture we strive to build every day. By recognizing and empowering our people, we reinforce our Employee Value Proposition of ‘Making Work Enjoyable and Rewarding’ while bringing our Corporate Purpose to life. When our people grow, innovate, and thrive, they create lasting value for our customers, partners, and the communities we serve.”
DIMO KNIGHTS reinforces the organization’s people-first philosophy by fostering a culture of appreciation, continuous learning, and purposeful leadership. The programme reflects DIMO’s conviction that when employees are empowered, recognized, and inspired to excel, they shape the future of the organization through innovation, collaboration, and sustained excellence, strengthening a high-performing culture that delivers lasting value, drives sustainable business success, and reinforces DIMO’s position as an employer of choice.
The evening recognized employees across a wide range of categories, celebrating outstanding performance, innovation, collaboration, customer focus, and leadership. The ceremony culminated with the presentation of the prestigious Innovator of the Year and Employee of the Year awards, with the Employee of the Year accolade presented to Mr. Chathura Gunasekera.
As DIMO continues to invest in developing exceptional talent, initiatives such as DIMO KNIGHTS reaffirm the organization’s belief that sustainable business success begins with its people. By creating an environment where individuals are recognized, empowered, and inspired to achieve their full potential, DIMO continues to cultivate a purpose-driven, high-performing workforce that is equipped to shape the future of the organization while delivering lasting value to all stakeholders.
Business
Sri Lanka’s lifestyle coffee culture boom and the two faces of its economy
By Sanath Nanayakkare
On Baseline Road in Colombo, Barista Coffee recently opened its 100th outlet. For a modern café culture spreading across shopping centers, office districts, and provincial towns, this milestone is a major commercial success. It shows a thriving urban service sector and a growing class of lifestyle consumers who use coffee shops as places to work, socialise, and meet.
This is a curious new picture emerging from Sri Lanka’s post-crisis economic recovery: the coffee cup is getting bigger, even as the household tea cup tells a very different story.
Yet, looking past the espresso machines, a different reality unfolds in the country’s kitchens.
International financial institutions note that while Sri Lanka’s macro-economy is recovering, household welfare and employment remain below pre-crisis levels. Poverty rates sit at roughly double what they were in 2019, and food prices doubled over a three-year span, forcing families to cut back on essentials.
This creates a striking local paradox, especially given Sri Lanka’s proud heritage as a global tea producer. While the world pays top dollar for Ceylon Tea, local market studies and industry reports have long pointed out an unfortunate disparity: many ordinary families find high-quality tea too expensive, often settling for lower-grade alternatives at home.
The growth of a 100-outlet coffee network does not mean prosperity has spread evenly across the island. Instead, it proves that there is a specific, well-resourced segment of consumers with the purchasing power to sustain a premium lifestyle economy, even as many other households carefully calculate the cost of everyday groceries.
Barista’s 100th store is not a bad-news story; it is a testament to acute entrepreneurial grit, shifting consumer behavior, and the vital revival of the nation’s urban service sectors. But it serves as an uncompromising reminder that macroeconomic stabilisation is not synonymous with household recovery.
As Colombo’s coffee culture looks toward its next hundred outlets, the true pulse of the nation’s economic health will not be measured by the espresso machines humming in sleek urban hubs, but by the quiet arithmetic happening in millions of kitchens beyond its doors – where the fundamental question remains whether a family can comfortably afford a better cup of Ceylon Tea.
Business
Aitken Spence Hotel Holdings Rs. 5 billion debenture issue oversubscribed on opening day
Aitken Spence Hotel Holdings PLC announced that its maiden listed, rated, unsecured, senior
redeemable debenture issue was oversubscribed on its opening day, 15th September 2026.
The Company sought to raise Rs. 3 billion through an initial issuance of 30 million debentures at Rs.
100 each, with an option to issue a further 20 million debentures in the event of oversubscription of the initial issue, increasing the total issue size to Rs. 5 billion.
The Company said it had received applications for more than 50 million debentures, the full amount on offer, prompting the issue to close at 4:30 p.m. on the opening day (15).
The basis of allotment will be announced to the Colombo Stock Exchange as per regulatory requirements in due course.
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Dr Lakmini Fernando is a Research Fellow at IPS with primary research interests in Development Economics, Public Finance and Climate Change. She has expertise in econometric data analysis, research design and causal methodologies. Dr Fernando holds a BSc in Agriculture from the University of Peradeniya, a Master of Development Economics (Advanced) from the University of Queensland, Australia and a PhD in Economics from the University of Adelaide, Australia.
Sulochana Silva is a Research Assistant at the Institute of Policy Studies of Sri Lanka (IPS). She holds a BSc (Hons) in Agricultural Technology and Management specialising in Applied Economics and Business Management from the University of Peradeniya. Her research interests are agriculture policies and institutions, environment and natural resource policies, food security and climate change.