Business

Can Overseas Sri Lankans finally have their say?

Published

2 years ago

2024/11/6

Voting Beyond Borders:

Dr Bilesha Weeraratne is a Research Fellow and Head of Migration and Urbanisation Research at IPS. Prior to re-joining IPS in 2014, she was a Postdoctoral Research Associate at Princeton University, New Jersey, USA. Her research interests include internal and international migration, climate mobility, urbanisation, the economics of education, labour economics, economic development, econometrics and economic modeling. She holds an MA in Economics from Rutgers University, USA and an MPhil and PhD in Economics from the City University of New York, USA.

By Dr Bilesha Weeraratne

The recent presidential election in Sri Lanka marked a series of “firsts,” setting it apart from previous elections. It saw a record-low number of 350,516 valid voters per candidate, implementation of the Regulation of Election Expenditure Act of 2023, and a second count of votes. Notably, there was also greater engagement from Overseas Sri Lankans (OSLs) in the country’s electoral process than at any time previously.

Indeed President Anura Kumara Dissanayaka actively engaged with Sri Lankan expatriates during his campaign, visiting countries including South Korea, Australia, the USA, Canada, Sweden, the UK and Japan. Continuing a trend from the previous presidential election in 2019, there was evidence of Sri Lankans returning to vote. However, despite this enthusiasm, the long-standing debate over granting OSLs the right to vote from abroad remains unresolved. Of the OSLs, it also means 1.5 million Sri Lankan workers abroad could not vote in the recent election according to the SLBFE.

Voting with Their Wallets

While OSLs may not have voting rights yet, those who regularly remit earnings back to Sri Lanka have already demonstrated their influence—by voting with their wallets. In the run-up to the 2022 economic crisis, government efforts to attract more formal remittances by offering higher interest rates failed to convince OSLs, as the formal foreign exchange rate offered was far below the informal rate. As a result, in 2022, remittances to Sri Lanka declined by a record 42%. Compared to the steady 10-year average USD 6.4 billion inflow (from 2010 to 2020), the decline to USD 3.7 billion was the final nail in the coffin that sparked the 2022 sovereign debt default.

Remittance and Voting Rights

The literature identifies three mechanisms for linking the receipt of remittances with political participation.

1) Income Channel: those with greater resources are able to devote more resources (both in terms of material support and time) to political activities;

2) Independence Channel: remittances reduce the dependence of recipients on the government for material prosperity; and

3) Insurance Channel -remittances promote feelings of economic security in recipients that allow them to pay more attention to non-material concerns.

While these mechanisms are for all voters in households receiving remittances, OSLs prefer a say in how the macroeconomy back in Sri Lanka is managed by elected officials, i.e. how does the government spend the foreign exchange OSLs regularly send as remittances? what are the interest rates on their savings? how is inflation feeding into the purchasing power of their remittances? how is the foreign exchange rate affecting the disposable income of their remittances? how are savings and investments of their remittances taxed? and what are the public services available to their families left behind? to name a few. The answers to such questions are linked to election promises and how governments actually perform when in office. Voting rights would allow OSLs a voice in economic policies that impact their remittances and financial interests in Sri Lanka.

Overseas Absentee Voting:

A Long-Awaited Promise

Providing voting rights or Overseas Absentee Voting (OAV) has been in discussion for many years, with various candidates, including the current president, promising to make it a reality. Sri Lanka has also ratified the United Nations Convention on the Rights of All Migrant Workers and Members of their Families, which calls for migrant workers’ voting rights (Article 41). Many previous governments, though keen, have not been successful on this front. Previous efforts include a Parliamentary Select Committee for Electoral Reforms recommending voting rights for OSLs in 2021, and a Special Presidential Commission in 2023 (among other issues) being required to make recommendations on a mechanism for OSL voting rights. In 2023, the Election Commission developed a beta version of an online method for registering OSLs for voting. However, according to the Commissioner General of Elections their hands are tied “until the Parliament passes a law to enable migrant workers to vote from their destination states.”

How to Make Overseas Absentee Voting a Reality

There are many possible and sophisticated ways to implement OAV, including advanced in-person (similar to postal voting in Sri Lanka), voting by mail, facsimile, or internet, as well as proxy voting (where a duly authorised representative or a proxy vote on behalf of the absent voter). Some countries such as the Philippines, for instance, use a combination of in-person and postal voting.

For Sri Lanka, keeping things simple would be one important mindset in transitioning from an eternal election promise to making overseas absentee voting a reality. A manageable starting point could be advanced in-person in-embassy voting, which would function analogous to Sri Lanka’s postal voting system. Embassies could serve as analogous to postal voting centers for expatriates, and OLSs to postal voters.

Hence, learning from the Philippines, a few key steps in the process of allowing in-person in-embassy voting are:

Enshrine in the Constitution the right of qualified OSLs to vote

Enact an Act related to OAV

Define a system and the mechanism for exercising such rights, covering aspects of

Defining qualifications for OAV

Identifying a registration procedure for eligible OSL

Identifying voting and vote counting mechanisms.

Not an Easy Road

Implementing OAV will not be without challenges. For Sri Lankans residing in countries without a local embassy, registration and voting might require travel to the nearest consular post. While critics would highlight that time and financial cost would “deter the diaspora from proactively partaking in voting”, employees such as female domestic workers would have the added challenge of seeking “approval of their masters and traveling a long distance to both register and vote”. Mail voting or assigning longer voting periods, including weekends, could alleviate some of these concerns.

Other concerns of out-of-country voting include potential vote buying and exploitation. Activists also raise concerns about whether politically appointed staff in diplomatic missions would influence, especially the unskilled and voiceless OSLs. Therefore, there is a need for a “mechanism with checks and balances” to “prevent the integrity of the electoral result from being questioned”.

While criticisms of each optional OAV method will likely emerge, it is important to start taking initial steps toward one feasible and practical option. The issues can be ironed out with time, and more sophisticated options can be pursued.

Finally, it is important to realise that achieving this goal in time for the upcoming Parliamentary election on 14 November or the pending provincial or local government elections in 2025 is not easy. Yet, initial steps towards this change are much needed and the time is right for it.

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Business

IMF talks conclude without staff-level agreement as Sri Lanka prepares November Budget

Published

6 hours ago

2026/09/24

Sahan Weerasooriya

Fund says discussions will continue on policies and parameters needed to complete the Seventh Review

By Sanath Nanayakkare

Sri Lanka’s latest talks with the International Monetary Fund (IMF) have concluded without a staff-level agreement on the policies and parameters required to complete the Seventh Review of its Extended Fund Facility (EFF), leaving further discussions ahead as the government prepares its next Budget.

An IMF team led by Mission Chief Evan Papageorgiou visited Sri Lanka from September 10 to 23 for discussions on the Seventh Review and the 2026 Article IV Consultation.

The Fund said the discussions with Sri Lankan authorities had been productive, but would continue in the near term towards reaching agreement on the parameters and policies needed to complete the Seventh Review.

The outcome therefore represents a delay in reaching the formal staff-level milestone rather than a breakdown in negotiations.

The latest mission comes as Sri Lanka moves from economic stabilisation towards longer-term structural transformation, while continuing to face external shocks and domestic fiscal pressures.

The IMF said economic activity expanded by 4.2 percent in the second quarter of 2026, marking the 11th consecutive quarter of growth. At the same time, the Fund cautioned that downside risks remained, particularly amid an uncertain external environment.

Gross official reserves had risen to US$6.9 billion by the end of August, while the banking sector remained well capitalised and profitable, providing some buffers against external pressures.

A major focus of the IMF’s latest assessment was Sri Lanka’s revenue position.

The Fund said developing and implementing a strong medium-term revenue strategy would be critical to sustaining revenue mobilisation and strengthening fiscal resilience.

It stressed the need to broaden the tax base, rationalise tax exemptions and incentives, and strengthen revenue administration and compliance.

The IMF also emphasised the importance of maintaining cost-recovery energy pricing and improving the efficiency and fairness of the tax system in order to reduce fiscal vulnerabilities.

These issues assume particular significance as the government prepares its next Budget, with the authorities seeking to balance revenue mobilisation and fiscal consolidation against the need to sustain economic recovery.

The Fund’s latest position does not indicate that negotiations have broken down. Rather, the IMF has said that discussions will continue towards reaching agreement on the remaining policies and parameters required to conclude the Seventh Review.

The latest talks follow the combined Fifth and Sixth Reviews, for which IMF staff and Sri Lankan authorities reached a staff-level agreement in April, subject to completion of the remaining requirements before consideration by the IMF Executive Board.

For Sri Lanka, the immediate challenge is therefore to preserve the gains made in macroeconomic stabilisation while addressing the remaining issues under the IMF programme and preparing a Budget capable of supporting longer-term fiscal and economic resilience.

With further discussions expected in the near term, the Seventh Review remains a work in progress as Sri Lanka enters another critical stage of its economic reform programme.

Notably, the IMF has yet to publicly specify the outstanding issues that remain to be resolved.

Business

UK digital expertise and Sri Lankan business leaders unite to explore growth through technology

Published

6 hours ago

2026/09/24

Sahan Weerasooriya

British High Commissioner Andrew Patrick

British High Commissioner Andrew Patrick hosted UK digital product consultancy Apadmi at Westminster House, his official residence in Colombo, for an invite-only forum bringing together senior business leaders from across Sri Lanka’s retail, banking, telecommunications, hospitality and public sectors.

The event, “Turning Digital Assets into Growth Engines”, marked Apadmi’s first official event in Sri Lanka since establishing its Colombo office in 2025, and was delivered in partnership with the British High Commission as part of ongoing efforts to strengthen UK and Sri Lanka commercial and technology ties.

Guests were welcomed by High Commissioner Andrew Patrick, followed by a keynote from Niresh Muthuratnanandan, Head of Omni Commerce, Digital & Loyalty at Keells Supermarkets, who spoke about the launch of the Keells Nexus app and the modernisation of a loyalty programme serving 2.9 million members.

A panel discussion followed, hosted by Mark Collin, Chief Growth Officer at Apadmi, and featuring Malik Induruwana, Chief Information Officer at HSBC Sri Lanka & Maldives; Jiffry Zulfer, Founder and CEO of PickMe; Uthpala Pinnaduwahewa of Hatton National Bank; and Marcus Hadfield, Chief Strategy Officer at Apadmi.

The discussion centred on the commercial opportunity created by Sri Lanka’s rapid mobile adoption. According to [source], mobile data usage in the country reached 1.03 million terabytes in Q2 2026, a 31% increase year on year, against 29.4 million mobile subscriptions. With 71% of devices now smartphones or tablets, speakers discussed how Sri Lankan businesses could convert growing digital engagement into customer loyalty, new revenue and operational efficiency.

British High Commissioner Andrew Patrick said:

“It was a pleasure to welcome Apadmi and such a strong group of business leaders to Westminster House for this event. The UK and Sri Lanka have a longstanding partnership, and digital innovation is an increasingly important part of that relationship. Apadmi’s decision to establish a base in Colombo reflects the confidence that UK companies have in Sri Lanka’s digital economy, and I look forward to seeing this partnership continue to grow to the benefit of both our countries.”

Mark Collin, Chief Growth Officer at Apadmi, said:

“Being hosted by the British High Commission was a real privilege, and a fitting way to mark the next stage of our commitment to Sri Lanka. To bring leaders from Keells, HSBC, PickMe and Hatton National Bank into the same room says a great deal about the ambition here. We opened our Colombo office because we believe Sri Lanka is at a genuine turning point; the talent is exceptional, and we are proud to be building here for the long term.”

Business

Planters’ Association Chairman proposes 5-point plan for industry revival at 172nd AGM

Published

6 hours ago

2026/09/24

Sahan Weerasooriya

Seated from left to right: newly elected Deputy Chairman of the Planters’ Association of Ceylon (PAC), Binesh Pananwala; Secretary General, Lalith Obeyesekere; newly elected Chairman, Shanaka Samaradiwakara; Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe; and Chairman of the Sri Lanka Tea Board, Raj Obeyesekere.

Malwatte Valley Plantations PLC Director / CEO, Shanaka Samaradiwakara was appointed as Chairman of the Planters’ Association of Ceylon (PAC), while Kahawatte Plantations PLC Director / CEO Binesh Pananwala, was appointed as Deputy Chairman at the Association’s 172nd Annual General Meeting (AGM) on 19 September at the Cinnamon Grand.

The event was graced by Central Bank of Sri Lanka Governor, Dr. Nandalal Weerasinghe and Sri Lanka Tea Board Chairman, Raj Obeyesekere as Chief Guest and Guest of Honour respectively.

In his inaugural address, Samaradiwakara outlined a five-point vision for the plantation sector, focusing on value addition, research and development, land-use and productivity, irrigation and long-term security of tenure. He emphasised that the future of commercial agriculture in Sri Lanka would hinge on how effectively all industry stakeholders could work together, while maintaining clear understanding of the ground realities faced by producers.

Value-added tea accounted for more than 50% of total tea export volumes in 2025. Samaradiwakara noted Regional Plantation Companies (RPCs) have accounted for the majority of that volume through continuous investments, including most recently in matcha, green tea and artisanal teas.

In that context, he sought the support of the Sri Lanka Tea Board and the export sector to protect this emerging high value segment, given that significant quantities of green tea and other high-value teas remain unsold at auction while similar products continue to enter the country. “We respectfully request the authorities to review this matter and introduce appropriate measures to support domestic production and value addition,” he stated.

On research and development, he observed that commercially viable alternatives to several essential crop protection products remain limited. Accordingly, he called on the Tea, Rubber and Coconut Research Institutes to lead the development of practical, scientifically proven alternatives, while stressing that disease threatening the rubber industry requires immediate attention. “We cannot afford to repeat the experience of the coffee industry, where coffee blight devastated the sector,” he added.

Turning to issues around land-use policies and productivity, he noted that RPCs have diversified for over two decades in response to changing rainfall patterns, introducing crops such as oil palm, pepper and avocado. He warned that these investments are increasingly threatened by unsupportive policy, agricultural theft and crop damage by wild animals, costing companies millions of rupees each month in security. “It is imperative that these investments are protected through strong enforcement, appropriate regulatory reforms, and effective measures to address both agricultural theft and crop damage,” he noted. On irrigation, he appealed to the Government to relax archaic restrictions on groundwater use and simplify approvals for drilling tube wells in order to enhance climate resilience.

Addressing security of tenure, he highlighted that replanting often takes more than a decade to generate meaningful revenue, and that uncertainty over lease extensions is making it harder for RPCs to attract foreign direct investment and long-term financing. “If we are to attract fresh capital, accelerate replanting, modernise our plantations and improve productivity, security and certainty of tenure are mandatory,” he added.