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Bridging the Gaps: The COVID-19 crisis and Sri Lanka’s healthcare response

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By Priyanka Jayawardena

Like many other countries, Sri Lanka faces numerous challenges in the battle against COVID-19. The pandemic has caused deep uncertainty and presented a colossal challenge for the country’s healthcare system. With the rapid increase in cases and the emergence of new variants, Sri Lanka began to face shortages of medical resources, including hospital beds and medical equipment.

The vaccination programme was beset with a host of problems early on due to the irregular and inconsistent supply of vaccines, disorganised deployment and deviation from the scientifically agreed prioritisation. There was also alleged misreporting of COVID-19 daily statistics in the Gampaha district and Eastern Province. The absence of real-time data acted as a hindrance to obtain a reliable risk assessment in the country. Against this backdrop, this blog examines the gaps in the ongoing pandemic control programme and outlines ways to bridge these gaps so that more lives could be saved from COVID-19.

COVID-19 Vaccination Programme

By mid-August 2021, more than 12 million Sri Lankans (55% of the population) had been vaccinated with at least the first dose. Other than the delayed supply of vaccines, there were issues related to getting approval for vaccine use and the vaccination prioritisation process. Moreover, many people were seen queuing up at vaccination centres aggravating health risks due to the lack of a properly planned system for vaccine deployment and the lack of an online appointment system. More recently, the government has taken several measures to improve the rollout, including expediting the procurement process and improving administration with the support of the defence services.

Gaps in Pandemic Control

Sri Lanka’s rate of COVID-19 screening has remained inadequate to prevent the spread of the virus. Systematic surveillance is crucial for the rapid identification and detection of suspected COVID-19 cases. With newer variants found to be more transmissible and deadlier, there is a need to identify mutants and track the nature of transmission. Currently, the University of Sri Jayewardenepura is the only institution equipped with laboratory facilities to conduct genomic sequencing to identify new variants.

Countries like Singapore, New Zealand and Australia systematically monitor the pandemic through extensive testing and contact tracing. These countries are conducting 10-100 times more tests than other countries with a similar number of new confirmed cases. Sri Lanka’s extent of testing relative to the scale of the outbreak (positive rate was around 10%), is on par with Thailand and Malaysia but lower than India, Vietnam and Cambodia where the positive rate is below 5%.

Further, a major challenge to the existing healthcare system is inadequate ICU beds, ventilators, oxygen supplies and other necessities required to care for patients with severe respiratory failure. The availability of ICU capacity plays a crucial role in critical cases, and constant and uninterrupted availability of oxygen supplied beds is needed to avert a disaster. Currently, less than 200 ICU beds are in isolation units for patients with severe COVID-19 symptoms, whereas just around 700 ICU beds are available in the hospital system of the entire country.

Equally, it is vital to have timely access to real-time data so that meaningful insights can be drawn but due to capacity constraints and administrative issues, PCR test results are reported to be delayed. In some districts, the delays are said to be longer than one week. Thus, delays in generating test results are a grave concern and represent a major obstacle in the COVID-19 control process. There is a growing need for immediate and accessible healthcare and digital healthcare resources to effectively respond to the challenges posed by COVID-19. However, Sri Lanka’s health information systems are weak and under-funded and the lack of an adequate central health database and IT infrastructure has hampered digital health services.

Towards a Stronger Healthcare Response

The healthcare system has to be streamlined to ensure a successful vaccination deployment and a smooth inoculation programme with online appointments including over the phone appointment facilities. Parallel to an efficient vaccination programme, an enhanced screening capacity is needed for the rapid identification of COVID-19 cases. Sri Lanka’s overall COVID-19 screening capacity remains low; therefore, expanding testing and increasing the health sector’s capacity to identify new mutants is vital to curb the pandemic. Random PCR testing too must be carried out in densely populated areas which are prone to be contagious, thereby taking additional precautionary measures.

There is a growing concern about the availability of medical supplies in emergency contexts. Sri Lanka has to effectively leverage its limited resources in response to the pandemic. The crisis response has seen local innovation in the manufacturing of ICU beds and lab consumables and there is further scope to encourage local enterprise and innovation for this purpose. For instance, a team of Sri Lankan scientists recently invented a new PCR test kit using NANO technology, which is said to drastically reduce the testing time from two hours to half an hour. There is now an opportunity to encourage local innovation and local production through such efforts, where they contribute to efficiency gains.

Furthermore, a robust laboratory strategy, which includes laboratory networking, communicating real-time information on COVID-19, quality assurance and adequate workforce capacity is important for rapid detection and case management. South Korea, for example, practised the disclosure of real-time information on COVID-19 by the government via dedicated websites, mass media, phone messages and mobile apps. Digitalisation of healthcare and effective use of technology for sharing real-time data, contact tracing and surveillance and coordinating the efficient use of clinical resources are vital for successful pandemic control. It is also necessary to improve systems to manage real-time data and decision-support systems. Improved functional integration and coordination in treatment centres and laboratory services bring in many benefits.

*This blog is based on the comprehensive chapter on “Coping with Pandemics: Sri Lanka’s Healthcare System” in IPS’ forthcoming ‘Sri Lanka: State of the Economy 2021’ report.

Link to original blog: https://www.ips.lk/talkingeconomics/2021/09/02/bridging-the-gaps-the-covid-19-crisis-and-sri-lankas-healthcare-response/

Priyanka Jayawardena is a Research Economist at the Institute of Policy Studies. Her research interests include education and skills development, labour economics, inequality analysis, health economics and child nutrition. She holds a BSc (Hon) in Statistics and an MA in Economics from the University of Colombo, Sri Lanka. (Talk to Priyanka – priyanka@ips.lk)



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CMTA urges action on government revenue leakage of Rs.40 billion

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Seated (L to R): Lakmal De Silva Chief Officer, Vehicle Sales, David Pieris Motor Company (Lanka) Ltd; Mahen Thambiah, Chairman, Kia Motors Lanka Ltd.; Gahanath Pandithage, Managing Director, Diesel & Motor Engineering PLC (DIMO); Andrew Perera, Chairman, Ceylon Motor Traders Association (CMTA.; Nalin Welgama, Chairman, Ideal Motors (Pvt) Ltd.; Charaka Perera, Group Chief Operating Officer, United Motors Lanka PLC; Tarindra Kaluperuma, Director, Stafford Motors (Pvt) Ltd.; and Jawahar Ganesh, Group Managing Director, Associated Motorways (Private) Limited

The Ceylon Motor Traders’ Association (CMTA), established in 1919 is the most senior automotive association in Sri Lanka affiliated with the Ceylon Chamber of Commerce, is calling for greater consistency, transparency and fairness in the policies governing the country’s automotive sector, stressing that a sustainable vehicle import framework must ensure a level playing field across the entire industry.

The Association’s concerns come at a time when the automotive sector continues to operate under significant fiscal and regulatory pressures, with recent policy measures, including the introduction of a 50% surcharge on vehicles, adding further complexity to an already challenging market. While the CMTA recognises the Government’s need to manage foreign exchange, generate revenue and regulate vehicle imports responsibly, it believes that such measures must be structured in a manner that does not disproportionately disadvantage legitimate businesses or distort competition between different segments of the market.

At the centre of the Association’s concerns is the continued application of a blanket 15% depreciation on the Cost, Insurance and Freight (CIF) value of used vehicle imports for duty calculation purposes. The CMTA maintains that this mechanism creates an unintended advantage for certain used vehicle imports, particularly when vehicles entering Sri Lanka as used units can be virtually identical to brand-new vehicles in terms of model, specification and, in most cases, mileage.

The Association estimates that the existing depreciation mechanism resulted in approximately Rs. 40 billion in lost to government revenue in 2025 alone. Without corrective action, a similar level of revenue leakage could occur in 2026, representing a significant loss at a time when government revenue remains critical to strengthening public finances and supporting national development.

The issue, the CMTA emphasises, is not about restricting consumer choice or opposing the used vehicle market rather, it is about ensuring that vehicles entering the country are assessed fairly and consistently, based on their actual value and circumstances. When two substantially identical vehicles can attract different levels of taxation simply because one has been registered overseas before being imported, the Association believes the resulting disparity warrants policy reconsideration.

The CMTA argues that the same principle of fairness should also apply when considering the impact of newer fiscal measures, including the recent 50% surcharge. Such a substantial additional cost can have implications across the automotive value chain, affecting vehicle prices, consumer affordability, business viability and the broader ecosystem supporting vehicle sales and after-sales services.

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Dilip de S Wijeyeratne Deputy Chairman

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Dilip de S Wijeyeratne, Deputy Chairman, Sampath Bank PLC

Sampath Bank PLC announced the appointment of Dilip de S Wijeyeratne as Deputy Chairman, effective 10th September 2026, further strengthening the Bank’s leadership as it advances its strategic priorities and continues to evolve as a purpose-led, technology-enabled financial institution.

Wijeyeratne brings extensive experience across banking, finance, risk management and compliance, investment banking and treasury, complemented by a strong understanding of corporate governance, strategic planning and financial markets. His breadth of experience and forward-looking perspective will support Sampath Bank’s focus on translating purpose and strategy into sustainable growth, while advancing data-driven decision-making and the intelligent application of artificial intelligence across the organisation.

Wijeyeratne’s association with Sampath Bank spans nearly eight years. He joined the Bank as a Non-Independent, Non-Executive Director in November 2018 and was appointed an Independent Director in August 2019. He subsequently served as Senior Independent Director from May 2022 and continued as an Independent, Non-Executive Director from June 2026. He currently serves as Chairman of the Board Audit Committee and contributes to the Bank’s Sustainability, Human Resources and Remuneration, Treasury, Strategic Planning, Nominations and Governance, and Related Party Transactions Review committees.

A senior finance and banking professional and principal consultant,Wijeyeratne provides advisory services to organisations across the Middle East, Sri Lanka and Australia. His professional career includes senior roles with HSBC Group in Bahrain, where he held responsibility for finance and operations, global markets and treasury, corporate treasury sales and asset and liability management. He subsequently moved into entrepreneurship and advisory services, providing financial and strategic consultancy to private and public sector organisations.

In addition to his responsibilities at Sampath Bank, Wijeyeratne serves as Senior Independent Director of Singer (Sri Lanka) PLC and Hayleys Fibre PLC, and as an Independent, Non-Executive Director of Janashakthi Insurance PLC. His extensive governance experience across these institutions has provided him with broad exposure to financial oversight, risk, strategy and corporate governance.

Wijeyeratne is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka, a Fellow Member of the Chartered Institute of Management Accountants, UK, and a Graduate Member of the Australian Institute of Company Directors. His combination of financial expertise, governance experience and strategic insight positions him to make a significant contribution to Sampath Bank’s continued growth and transformation.

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KOKO and Ceylinco Insurance introduce Sri Lanka’s first medical insurance offering

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KOKO, Sri Lanka’s leading Buy Now, Pay Later (BNPL) platform, has partnered with Ceylinco General Insurance to introduce Sri Lanka’s first customised medical insurance offering designed exclusively around the needs of KOKO customers.

The partnership marks a first for Sri Lanka’s fintech and insurance sectors, bringing together Ceylinco General Insurance’s decades of expertise in health insurance with KOKO’s understanding of its customer community to create a medical protection solution built specifically for the digital lifestyle and financial needs of KOKO users.

Unlike a standard health insurance product adapted for a partner platform, this offering has been developed as a customised value package for KOKO customers, focusing on accessibility, affordability and ease of activation within the digital journey they already use. The policy provides medical insurance cover of up to USD 40,000, offering meaningful protection against hospitalisation, treatment costs and major medical expenses.

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