News
Banks have not passed on reduced interest rates announced by CB to entrepreneurs; lack of demand another bugbear
By Saman Indrajith
Entrepreneurs have not really benefited from the drop in inflation, due to the lack of demand and shrinking economy, Chairperson of Sri Lanka United National Businesses Alliance (SLUNBA), Tania Abeysundara said on Wednesday in a televised interview.
She said that their businesses are operating at 40 percent capacity and most of the money they earn is taken back by the government, through increased utility bills and taxes.
“We are not benefiting. We need to buy goods to ensure the businesses keep on operating. What we produce goes into the market, people consume and we get money. It’s a rotation. Now the consumer market is down by 40 to 60 percent. Food consumption is down by at least 40 percent, and the finished clothing market is down by 60 percent,” she said.
Abeysundara mentioned that inflation has dropped because there is more supply than demand. Companies can’t reduce supply further without shutting down certain operations.
She said that the Central Bank has asked the banks to reduce interest rates. However, the banks only give loans at a floating rate and the rate is still about 23 percent, she said.
“How do we run a business after taking a loan at 23 percent?” she said.
Abeysundara added that the government has also not done enough to encourage foreign investments. Even now, most foreign investors have to come meet the Minister and his or her family, she said.
“There is no reason to invest in Sri Lanka. Even Sri Lankan entrepreneurs aren’t getting any benefits. We are an import economy, and we cover it by taking loans. Out of the importers, about 30 percent do not pay taxes because they work with cash and not through banks,” she said.
These importers send most of the money through the black market and manage to clear the imported goods through their connections, she said.They also control the supply of goods, she added.
She said that all countries had achieved development by promoting SMEs, and that the Asian Tigers, and even China, had promoted SMEs to ensure that their economies could provide jobs to people.
News
Prime Minister of Sri Lanka holds a bilateral meeting with Minister for Education and Skills Development of Bhutan
On the sidelines of the inaugural Global Conscious Food Systems Summit 2026, being held in Bhutan from 31 August to 4 September 2026, Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, in her capacity as Minister of Education, Higher Education and Vocational Education, held a productive bilateral meeting with Yeezang De Thapa, Minister for Education and Skills Development of Bhutan, on 03 September 2026.
The discussions focused on further strengthening and expanding Sri Lanka-Bhutan cooperation in the education sector, with particular emphasis on developing mutually beneficial initiatives through enhanced Government-to-Government engagement.
Both sides underscored the importance of deepening institutional cooperation and exploring new avenues for collaboration in education, higher education and vocational training, with a view to creating greater opportunities for students, educators and academic institutions of both countries.
During the meeting, both sides agreed to initiate discussions towards the finalization and signing of a Memorandum of Understanding (MoU) on cooperation in the fields of education and vocational training. It was also agreed that the implementation of the MoU could be facilitated through the establishment of a Joint Working Group, headed at the Secretary level, with meetings to be convened annually to review progress, identify new areas of cooperation, and facilitate the effective implementation of agreed activities.
The major areas of cooperation discussed included enhancing collaboration among universities and academic institutions, promoting academic and faculty exchanges, joint research and university programmes, strengthening training and capacity-building opportunities for educators and teachers, and sharing expertise and best practices in the education and vocational training sectors.
The two sides also discussed strengthening child protection and safeguarding mechanisms, promoting ethical values among students, and addressing violence against children while ensuring their safety, protection, well-being and access to quality education.
Opportunities for Bhutanese students to pursue undergraduate studies at universities in Sri Lanka were also discussed, with particular emphasis on Dentistry, Medicine (MBBS), and allied health disciplines such as Physiotherapy. The discussions further covered opportunities for postgraduate studies in medical and health sciences at Sri Lankan universities, as well as enhanced collaboration among universities and other academic institutions of the two countries.
The meeting provided a valuable opportunity for Sri Lanka and Bhutan to advance cooperation in education and vocational training and explore new avenues for long-term collaboration for the mutual benefit of students, educators and academic institutions of both countries.
(Prime Minister’s Media Division)
Prime Minister Dr. Harini Amarasuriya had an audience with His Majesty King Jigme Khesar Namgyel Wangchuck at the Tashichhodzong in Thimphu on September 02, during her official visit to the Kingdom of Bhutan.
The cordial discussion focused on Bhutan’s future development priorities and opportunities for cooperation between the two countries.
His Majesty expressed Bhutan’s interest in drawing on Sri Lanka’s experiences and expertise in areas relevant to its development plans. The discussion also focused on promoting investment between the two countries, including the possibility of establishing an investment zone in Bhutan.
The two sides also exchanged views on demographic challenges facing Bhutan, including the increasing migration of young people and its impact on the country’s population and future workforce.
The meeting highlighted the importance of strengthening bilateral cooperation and sharing experiences and best practices in support of the sustainable development of both countries.
(Prime Minister’s Media Division)
Sri Lanka Podujana Peramuna (SLPP) Member of Parliament Namal Rajapaksa has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Namal Rajapaksa had been summoned by CIABOC to provide a statement in connection with investigations into the controversial Airbus deal. He was subsequently arrested by CIABOC after recording his statement for over 5 hours.
Prime Minister of Sri Lanka holds a bilateral meeting with Minister for Education and Skills Development of Bhutan
Prime Minister Meets His Majesty the King of Bhutan
Kusal Mendis, Binura Fernando ruled out of T20I series in England
SLPP MP Namal Rajapaksa arrested by CIABOC
Devapathiraja clinch U15 Division I title with 33-run win over Royal
Mandhana’s record ton powers India into semi-finals
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