Business

Building Sri Lanka’s economic future through smarter cities

Published

6 months ago

2025/11/7

Each year on November 8, planners around the world celebrate World Town Planning Day—a moment to reflect on how planning can build fairer, greener, and more prosperous societies. The 2025 theme, “With Planning We Can!”, reminds us that planning is not just about regulating land use—it is about shaping the destiny of nations.

In Sri Lanka, urbanization is one of the most powerful forces defining our development pathway. Yet, over the decades, urban growth has remained uneven—concentrated in a few regions while vast areas with great potential, from the North to the East and from Uva to the South, remain underdeveloped.

To achieve true national prosperity, Sri Lanka needs a comprehensive, balanced, and inclusive National Urban Development Policy—one that integrates all provinces, strengthens regional economies, and ensures that every city, town, and village contributes to a shared national vision.

Because with planning, we can build a future where every region matters.

Urbanization is often a mirror of economic transformation. Countries such as Singapore, South Korea, and Malaysia used planning-led urban growth to accelerate their economies. Sri Lanka, however, continues to experience slow and spatially fragmented urbanization.

While the official urbanization rate stands at around 19%, the reality is far more complex. When peri-urban and functionally urban regions are included, nearly half the population already lives in areas economically tied to cities. Yet much of this growth is unplanned—spreading linearly along roads and lacking efficient infrastructure.

This has resulted in congestion, high service delivery costs, and widening disparities between regions. Western Province, with 28% of the population, contributes nearly 44% of GDP. Meanwhile, provinces like the Northern, Eastern, and Uva—rich in resources and human potential—remain underutilized.

To correct this imbalance, Sri Lanka’s urbanization must be guided, strategic, and regionally balanced.

Sri Lanka’s settlement pattern is diverse. The country is composed of:

· Core Urban Populations – Residents of municipal and urban councils.

· Suburban and Fringe Settlements

– Areas around main cities with growing housing and employment links.

· Peri-Urban Populations

– People living on the edges of rural and urban zones, economically tied to nearby towns.

· Small and Emerging Growth Centers

– Towns that provide services to rural hinterlands but lack urban-scale infrastructure.

From Jaffna to Galle, Kandy to Trincomalee, and Kurunegala to Badulla—these settlement types coexist, but not always in coordination. A new approach must weave them together into a single national system of Functional Urban Areas (FUAs)—connected by economy, mobility, and governance.

Sri Lanka’s development challenge is not lack of talent or resources—it is unequal spatial development.

· Western Province dominates economically, yet faces congestion, high land costs, and overuse of infrastructure.

· Northern and Eastern Provinces

have vast land, skilled populations, and coastal trade potential, yet remain under-industrialized.

· Central and Uva Regions

possess rich natural and cultural assets that can drive sustainable tourism and agro-industries.

· Southern and North Western Regions

hold strong manufacturing and fisheries potential but require better connectivity.

Balanced national development means every province becomes part of the growth story. The future must not be a competition between regions, but a network of interconnected, complementary city regions—each contributing uniquely to Sri Lanka’s prosperity.

To manage growth wisely, Sri Lanka must adopt a structured, forward-looking framework. The National Urban Development Policy envisions a system of Livable Cities 2060, based on three guiding principles:

· Logical Urbanization – Guiding population and investment toward areas where infrastructure, employment, and services coexist efficiently.

· Functional Urban Areas (FUAs)

– Recognizing urban influence by function, not administrative limits.

· Livable Cities 2060

– Compact, green, inclusive, and resilient urban regions ensuring quality of life for all.

Vision: Livable Cities 2060

By 2060, Sri Lanka will feature a balanced network of compact, climate-ready, and well-connected urban regions that support equitable economic growth and a high standard of living.

Key Targets:

· 60% of population in official urban areas by 2060

· Less than 20% of land urbanized

· 30% reduction in commuting time by 2045

· 80% of residents within 800m of public transport by 2050

· Net-zero municipal emissions by 2060

Ten Strategic Pillars

· Urban Space

– Compact land use, vertical development, and function-based city classification.

· Urban Population

– Skilled, inclusive, and civically active communities.

· Urban Lands

– Urban land banks, zoning reform, and land value capture.

· Urban Economy

– Industrial diversification, regional innovation hubs, and SME promotion.

· Urban Food Security

– Protect peri-urban agriculture and encourage local food systems.

· Urban Housing

– Affordable, disaster-resilient, mixed-income housing integrated with transit.

· Urban Safety

– Climate-resilient, crime-free, and disaster-ready cities.

· Urban Mobility

– Smart transport, rail integration, and non-motorized connectivity.

· Urban Environment

– Blue–green networks, circular economy, and renewable energy.

· Planning & Governance

– Evidence-based decision-making, institutional reform with favorable laws, and professional capacity building.

Island wide Transformative Impact

If implemented consistently, this policy can deliver:

· Reduced regional disparities through balanced investment

· Economic diversification

across all provinces

· Efficient urban infrastructure

and reduced congestion

· Climate-smart cities

ready for future challenges

· Empowered local governments

and professional planning systems

· Higher national productivity

through spatial efficiency

As we commemorate World Town Planning Day 2025, Sri Lanka stands at a turning point. The next phase of national growth must be planned, inclusive, and regionally balanced.

From Colombo to Jaffna, from Kandy to Batticaloa, from Galle to Anuradhapura—each region has a vital role to play in shaping our collective future.

A well-crafted National Urban Development Policy can bridge regional divides, modernize our cities, and ensure prosperity reaches every community.

Because ultimately, with planning, we can build one Sri Lanka—united in vision, diverse in strength, and equal in opportunity.

By Y. A. G. K. Gunathilake
President Elect, ITPSL
Director, Western Province, Urban Development Authority

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Business

ADB signals strategic shift amid global turbulence, eyes budget support for Sri Lanka

Published

15 hours ago

2026/05/5

Sahan Weerasooriya

ADB President Masato Kanda (L) speaks at a one- on-one in Samarkand, Uzbekistan, yesterday.

The Asian Development Bank (ADB) is actively engaging with Sri Lanka on a potential budget financing package, following recent discussions between ADB President Masato Kanda and President Anura Kumara Dissanayake.

Describing the request as “crucial,” Kanda said the proposal is now under internal consideration, with a broader framework being developed to ensure funds are directed toward priority sectors such as energy security, food security, and overall budgetary support. While no figures or timelines were disclosed, he emphasised the need for a carefully structured and mutually agreed resource allocation strategy

Sri Lanka is among several countries that have approached the ADB for similar assistance, reflecting mounting fiscal pressures across the region.

Speaking at one of the key meetings of the 59th Annual Meeting of the ADB in Samarkand, Kanda outlined a broader institutional shift in response to escalating global economic uncertainties, particularly those stemming from tensions linked to the Iran conflict.

“Asia and the Pacific can’t afford to retreat into isolation,” he said, reiterating a paradigm shift in how the ADB responds with greater speed, flexibility, and coordination.

Reaffirming the bank’s commitment to the region, Kanda stated, “We will step forward as one, while the ADB will be your steadfast anchor,” signaling a more proactive and unified approach to crisis response and economic stabilisation.

As part of this renewed strategy, the ADB has launched a $70 billion initiative aimed at strengthening regional connectivity through integrated power grids and digital infrastructure. The program is expected to play a transformative role in boosting cross-border energy cooperation and technological integration. By 2035, the bank aims to facilitate the integration of approximately 20 gigawatts of renewable energy capacity across national borders, supporting both energy transition goals and regional resilience.

Kanda also detailed a multi-tiered response framework to address immediate and long-term economic disruptions. In the short term, the ADB is leveraging its Trade and Supply Chain Finance Program to provide rapid liquidity support. This is complemented by fast-disbursing budget assistance designed to shield vulnerable populations from economic shocks.

Over the medium term, the bank plans to deploy resilience-building tools to help the regional economies stabilise and adapt to ongoing geopolitical and financial stresses.

The evolving strategy reflects a recognition that traditional development financing models may be insufficient in the face of increasingly complex and interconnected global crises. For countries like Sri Lanka, the outcome of these discussions could prove pivotal in facing current economic challenges while laying the groundwork for sustainable recovery.

As deliberations continue in Samarkand, the focus remains on translating high-level commitments into tangible support mechanisms tailored to the specific needs of ADB”s member countries.

By Sanath Nanayakkare in Samarkand, Uzbekistan

Business

Sri Lankan Food Festival 2026

Published

15 hours ago

2026/05/5

Sahan Weerasooriya

At the initiative of the Deputy High Commissioner of Sri Lanka, Dr. Ganesanathan Geathiswaran, the Deputy High Commission of Sri Lanka in Chennai successfully organized the first-ever “Sri Lanka Food Festival 2026” from 24th to 26th April at Green Meadows Resort, Chennai.

The Festival provided a unique platform to showcase the rich and diverse culinary heritage of Sri Lanka, offering guests an authentic experience of traditional Sri Lankan cuisine.

The event was organized in collaboration with esteemed partners, including the Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka; Sri Lanka Tourism Promotion Bureau; Cinnamon Grand Hotel, Colombo; Ministry of External Affairs of India; India Tourism, the Government of India, the Tourism Department of the Government of Tamil Nadu, Dwarka Productions Chennai, and Tarlton Tea.

The primary objective of the festival to further strengthen cultural ties between Sri Lanka and South India while promoting tourism, trade, and people-to-people connections through a shared appreciation of culinary heritage was successfully achieved.

The occasion was further honoured by the presence of Suresh Jain, District Governor of Rotary District 3234; Navin Gupta, President of the Rotary Club of Chennai Coastal; and the Chief Guest, Dr. Ishari K. Ganesh, Founder, Chairman and Chancellor of Vels University.

The event was also attended by Mr. Blaze Kannan of Dwarka Productions; Nazoomi Azhar, General Manager of Cinnamon Grand Hotel, Colombo; and Sri Lankan actor Kalana Gunasekara, whose presence added further distinction to the occasion.

The festival witnessed the participation of diplomatic Corps, South Indian actors and actresses, distinguished business leaders, members of travel and tourism associations, members of Rotary Clubs, Round Table members, and members of the media fraternity, making it a prestigious and diverse gathering.

Over 700 guests attended the festival across the three days, reflecting strong interest and engagement from the local community.

In addition, the Rotary Club of Chennai Coastal announced its initiative to donate an ambulance to Sri Lanka and to renovate 30 schools across the country, further strengthening goodwill and support in the healthcare and education sectors between the two regions.

Business

JAECOO shakes up UK auto market with record-breaking growth

Published

15 hours ago

2026/05/5

Sahan Weerasooriya

Since its UK debut in January 2025, JAECOO has recorded 28,232 new vehicle registrations within its first year, validated by the SMMT, making it the fastest-growing mainstream automotive brand Britain has seen in over a decade. Its flagship model, the JAECOO J7 PHEV, ranked among the most popular retail cars in the UK within its first year and emerged as the best-selling new car in Britain in March 2026.

These results have been further reinforced by a series of prestigious industry accolades:

Carwow Brand of the Year 2026

Leasing.com Overall Car of the Year

Recognised by Google as the most searched Chinese automotive brand in the UK in its Year in Search 2025

Supporting this growth is JAECOO’s parent company, Chery Group, ranked 233rd in the Fortune Global 500 (2025) and China’s No. 1 passenger vehicle exporter for 23 consecutive years.

This global momentum is beginning to translate into local demand, with growing interest in the JAECOO J7 PHEV across Sri Lanka. Designed to combine premium styling with advanced technology and everyday practicality, the model is well suited to both urban driving and more challenging terrain. It offers a combined range of up to 1,200 km, fast-charging capability (30% to 80% in 20 minutes), and acceleration from 0–100 km/h in under 8.5 seconds. Safety and reliability are reinforced through advanced driver-assistance features, a five-star Euro NCAP rating, and a seven-year warranty offered by Hayleys Mobility.