Business
Bridging conservation and livelihoods: Addressing the Human-Elephant Conflict in Sri Lanka on World Elephant Day
By Ruwan Samaraweera
Written ahead of World Elephant Day, observed on 12 August 2023.
On World Elephant Day, attention turns to the unique challenges faced by Sri Lanka in the realm of human-elephant conflict (HEC). HEC’s escalating toll paints a stark reality. Human communities endure property damage, crop loss, and tragic fatalities, amplifying poverty and socio-economic instability. In 2022, as per the Department of Wildlife Conservation (DWC), Sri Lanka documented a total of 145 human fatalities resulting from HEC. Simultaneously, elephants face habitat loss, injuries, and mortality due to retaliatory killings and encounters with human settlements. DWC reported a substantial rise in elephant mortality, reaching a peak with a recorded total of 433 deaths in 2022. Therefore, the urgent need for implementing effective solutions to minimise HEC in the country becomes paramount.
Understanding the Conflict
The HEC is one of the widespread environmental issues with severe socio-economic and political implications in Sri Lanka. It arises from numerous reasons, wherein the competition for resources and land between humans and elephants being the most prominent. Rapid urbanisation, encroachment into elephant habitats, conversion of forests for agriculture, and other infrastructure development projects like road infrastructure have disrupted the elephants’ traditional migration patterns and fragmented their habitats. Consequently, elephants often venture into human settlements in search of sustenance, leading to conflicts that endanger both elephants’ and human lives.
Sumanadasa, a farmer in Galgamuwa, shares his experience of frequent elephant raids on their crop lands. He says, “As a farmer, my family depends on the crops we cultivate for our livelihood. However, the constant raids by elephants have taken a toll on our lives. We wake up each morning with anxiety, not knowing if our fields will be destroyed overnight. Our hard work and investment go in vain as elephants trample and devour our crops. It has become a struggle to provide for our family and maintain a sustainable income.”
These heart-wrenching stories highlight the profound impact of the HEC on individuals and communities. Beyond the economic losses, the emotional trauma and loss of human lives are immeasurable. The alarming increase in human and elephant fatalities resulting from HEC in Sri Lanka underscores the gravity of the situation. The average annual human death rate due to HEC increased by approximately 42% from 1992 to 2021, with the 2021 figure reaching 142 deaths. Despite fluctuations, the number of HEC-caused human deaths has consistently exceeded 100 per year over the last three years, resulting in a total of 2,111 human and 5,954 elephant casualties within the last 30 years. Apart from that, as already mentioned, crop damages emerge as a pervasive and severe issue. An IPS study revealed that among the crops grown in HEC-prone areas, paddy is the most vulnerable crop for elephant attacks, following coconut and banana. Furthermore, farmers have altered their cropping seasons due to this wild elephant risk.
Recognising the urgency of addressing the HEC, Sri Lanka has undertaken various policy initiatives and conservation efforts. Some of these are institutionally arranged measures while some are voluntary adjustments by affected communities. The DWC plays a crucial role in mitigating conflicts, implementing institutionally arranged measures such as creating elephant corridors, elephant drives, thunder flashes distribution, habitat enrichments and installing electric fences to reduce human-elephant interactions. Additionally, community-based conservation projects involving local communities in decision-making have shown promising results in promoting peaceful coexistence in some parts of the country. As a multifaceted approach to mitigating HEC, DWC has been implementing the “GajaMituro‟ programme since 2008. Under this, the DWC launched the aforementioned mitigating measures in 58 Divisional Secretariat Divisions (DSD) of 18 Districts. Similarly, residents in affected areas practice numerous voluntary measures to deter problems from elephants. Some examples of voluntary measures include erecting watch huts, creating noise (e.g., firing thunder flashes, shouting), establishing biological fences, and using lighting methods such as fires, kerosene lamps, flares, and flashlights to frighten and chase away the elephants. However, none of the mitigation measures has given a perfect solution due to various limitations. For instance, some elephants develop adaptive behaviours to actions such that thunder flashes, thus making those no longer effective against them.
Hence, to effectively manage the HEC, innovative solutions are imperative, and the government, academia, and other interested stakeholders continue to actively pursue innovative approaches and optimal strategies to effectively tackle the issue of HEC in Sri Lanka. Technology-driven approaches, including using infrared cameras, drones, sensor-based systems, and satellite imagery to detect habitat monitoring and elephant movements and then using mobile communication systems to alert nearby communities in real-time (early warning system), can help prevent conflicts. Through educational programmes in schools and community outreach initiatives, a sense of responsibility can be instilled while highlighting innovative market-based solutions like insurance. An IPS study found that insurance as a market-based solution can deliver promising results. These solutions can be complemented by agro-ecological practices such as cultivating elephant-resistant crops, bee-fencing and establishing community-managed buffer zones around protected areas.
Conclusion
As World Elephant Day serves as a powerful global platform for raising awareness on elephant conservation, Sri Lanka can capitalise on this occasion to promote understanding, empathy, and conservation values within local communities.
It is crucial to acknowledge that no single solution can entirely address the complexities of the HEC issue, given its regional variations, changes in elephant behaviour, and diverse human activities. Therefore, adopting a holistic approach that combines suitable traditional methods alongside innovative strategies, involving local communities, and considering the conflict’s ecological, economic, and social aspects becomes essential for effective and sustainable HEC mitigation. Collaboration among government agencies, conservation organisations, and local communities becomes paramount in achieving a harmonious coexistence where elephants roam freely, and humans thrive.
By adopting this comprehensive approach, Sri Lanka can strive towards a future where both elephants and humans coexist peacefully, safeguarding the well-being of these majestic creatures for generations to come. World Elephant Day serves as a poignant reminder that collective action and shared responsibility are crucial in preserving the rich biodiversity and cultural heritage that define this island nation.
Link to blog: https://www.ips.lk/talkingeconomics/2023/08/10/bridging-conservation-and-livelihoods-addressing-the-human-elephant-conflict-in-sri-lanka-on-world-elephant-day/
Ruwan Samaraweera is a Research Officer at IPS with a background in entrepreneurial agriculture. He holds a Bachelor’s in Export Agriculture from Uva Wellassa University of Sri Lanka. His research interests are environmental economics, agricultural economics, macroeconomic policy and planning, labour and migration, and poverty and development policy. (Talk to Ruwan – ruwan@ips.lk)
Business
NTB emerges stronger with clean books and capital muscle, signalling upside potential
Nations Trust Bank PLC (NTB) is emerging as a well-capitalised bank with cleaner books and a resilient earnings profile, positioning itself for a stronger growth phase in the coming years, according to First Capital Research.At a time when investor confidence in frontier markets is often dictated by balance sheet strength and earnings visibility, NTB appears to be ticking both boxes, according to the research firm’s earnings update of the bank.
The bank closed 2025 with a net profit of LKR 19.3 billion, reflecting a steady recovery trajectory despite residual macroeconomic pressures. More importantly, beneath the headline numbers lies a more compelling story: NTB’s core earnings engine is gaining strength. The distortion caused by one-off impairment reversals in previous periods has now faded, allowing a clearer view of the bank’s underlying performance. On this basis, recurring earnings have expanded sharply, pointing to a structurally improved operating model.
First Capital notes that NTB’s financial position remains robust, underpinned by capital ratios comfortably above regulatory thresholds. With a total capital ratio exceeding 20% and liquidity coverage ratios well above minimum requirements, the bank has built significant buffers to withstand external shocks. This strength is particularly relevant in a post-crisis environment where financial institutions are expected to prioritise resilience over aggressive expansion.
Equally noteworthy is the improvement in asset quality. NTB’s Stage 3 loan ratio has declined to below 1%, reflecting a healthier loan book and prudent risk management practices. This marks a significant turnaround from the stress levels seen during the height of the economic crisis, and suggests that the bank has successfully navigated the most challenging phase of credit deterioration.
While loan growth surged in 2025 as economic activity rebounded, a moderation is expected over the next two years. However, this slowdown should not be interpreted negatively. Instead, it signals a return to more sustainable credit expansion aligned with macroeconomic realities. NTB is still projected to outperform system-wide credit growth, supported in part by strategic initiatives such as the anticipated acquisition of the retail banking operations of HSBC in Sri Lanka.
This acquisition, expected to be completed in 2026, could prove to be a pivotal development. It is likely to strengthen NTB’s position in the premium retail segment while significantly boosting fee and commission-based income streams. In an environment where net interest margins are under pressure due to rising funding costs, diversification into non-interest income becomes increasingly critical.
Indeed, margin compression remains one of the key challenges facing the banking sector. NTB has not been immune, with higher deposit costs, particularly from fixed deposits, outpacing growth in interest income. Yet, the bank’s ability to maintain profitability despite these pressures underscores the resilience of its business model.
Looking ahead, First Capital forecasts NTB’s net profit to rise to LKR 23.9 billion in 2026 and LKR 27.2 billion in 2027. While these projections reflect a more measured macroeconomic outlook, they also point to steady and sustainable earnings growth.
From an investor’s standpoint, the valuation story adds another layer of appeal. NTB continues to trade at relatively low multiples despite delivering returns on equity exceeding 20%. This disconnect between market valuation and underlying performance suggests potential for a re-rating as confidence in the banking sector strengthens.
Hence, NTB’s evolution mirrors the broader recovery of Sri Lanka’s financial system—but with a notable edge. Its strong capital base, improving asset quality, and growing earnings visibility position it as one of the more compelling banking counters in the market today.
By Sanath Nanayakkare
Business
International cast of La Bamba arrives in Colombo
City of Dreams Sri Lanka and John Keells Foundation present a West End Musical, Opening on Friday.
Five members of the international cast of La Bamba! The Song of Veracruz arrived last week at Bandaranaike International Airport in Katunayake, ahead of the highly anticipated West End–licensed production in Colombo.
The visiting performers, Madalena Alberto, Eduardo Enríkez, Joseph Hewlett, Mychele LeBrun, and Charlotte Dos Santos Chabi, are marking their first visit to Sri Lanka and will celebrate the Sri Lankan New Year during their stay.
Following their arrival, the international artists will begin intensive rehearsals alongside the Sri Lankan cast, bringing together a dynamic blend of global and local talent. The collaborative process is expected to add depth and vibrancy to the West End–licensed musical, known for its rich storytelling, Latin rhythms, and high-energy choreography.
The production, directed and produced by London-based theatre producer Paul Morrissey, is a West End–licensed musical that brings together world-class performers, 7 live musicians, and a technical and creative crew of over 40 members. The musical has enjoyed successful runs internationally, delighting audiences across the UK, Europe, and North America with its vibrant blend of music and performances.
La Bamba! The Song of Veracruz is presented by City of Dreams Sri Lanka and John Keells Foundation. Audiences can experience this spectacular production from 24th to 27th April at The Forum, City of Dreams Sri Lanka.
Tickets are available via www.cinnamonboxoffice.com and the hotline +94 71 711 8111, with a 15% early-bird discount for Nations Trust Bank American Express and Mastercard Credit Card holders.
Business
Petroleum Dealers Association says commission cuts may disrupt dealer network
The Petroleum Dealers’ Association has urgently appealed to President Anura Kumara Dissanayake regarding a revised commission structure introduced by the Ceylon Petroleum Corporation (CPC) via Circular No. 1109 on 25 February 2025, effective 1 March 2025. The new system replaces the traditional percentage-based model with a tiered, capped rate per litre.
The Association warns that the reduced income fails to cover staff salaries, loan repayments, and operational costs—threatening the viability of 98% of individually or family-run dealers. Many cooperative-run stations may close, impacting employment and fuel supply networks. The change was made without prior consultation.
A broader structural imbalance exists: CPC operates under a cost-recovery model, retaining margin flexibility, while dealers absorb all costs within fixed earnings. By contrast, private fuel companies in Sri Lanka still pay dealers ~3% of sales, offering more sustainable income. Additionally, dealers must remit VAT on centrally-set fuel prices and purchase stock on a cash basis, increasing working capital needs without corresponding income growth.
The Association requests an expert committee, including their representatives, to develop a fair, sustainable solution. Without policy reform, financial pressure may disrupt the dealer network and national fuel availability.
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