Business
CB Governor urges general public to be mindful of any deviations from the path of stability
Let’s continue along the conservative path we have carefully chosen’
In 5 years, we will be in a much better position in terms of debt sustainability’
by Sanath Nanayakkare
Central Bank Governor Dr. Nandalal Weerasinghe insisted Friday that the general public who elect governments has a responsibility to be mindful if the governments elected by them deviate from the path of stability because it could adversely affect all stakeholders of the economy and communities across the country.
“Stay mindful about any deviations from the current path of debt sustainability, recovery and growth targets, and if you see any veering off course, it is your responsibility to get them back on the right track,” he said.
The Governor made this remark on Friday while delivering the keynote speech at the CFA Society Sri Lanka CEO Forum.
Speaking further he said,” We have been able to achieve some stability in the short term. And next important step in completing the stabilization programme is to complete both Domestic Debt Optimization (DDO) and external debt restructuring and signing a deal with external creditors – both commercial and bilateral creditors.
We hope we will be able to complete it somewhere in September –October 2023, and complete the first review of the IMF programme. Once that is done, the most difficult path on short term reforms will be over. Then we have to get ready for medium term growth and recovery, stable exchange rate, higher reserves, robust policies and growth enhancing structural reforms. That is the only path we have to pursue.”
“Some people are concerned whether there would be a second DDO. If we deviate from the current path there could be a second DDO or even there could be another default or bankruptcy. The government has committed itself to 0.3% primary surplus through prudent fiscal policies. If Sri Lanka turns back and moves backwards to -6% primary surplus, then there would be another debt unsustainability issue and would need another DDO.
As things stand now, Sri Lanka doesn’t need another DDO because the current one is strong enough and consistent with the targets to restore debt sustainability subject to other policy elements moving in parallel; namely, fiscal policy, structural reforms and the envisioned growth path. In my view, this DDO and debt sustainability is a conservative path we have rightly chosen and we need to be consistent with it.”
“The current trajectory is targeted on a 3% growth rate. But Sri Lanka has the capacity to grow its economy by about 5%. So if we are able to exceed that growth target, we would be better off than we think, and we won’t have to wait for 10 years to achieve debt sustainability.
In five years, we will be in a much better position in terms of debt sustainability. Given the outlook is conservative, we have room to go higher in terms of growth , expected inflation targeting outcomes and building foreign reserves. The authorities have to maintain a prudent fiscal policy for which the government has committed itself. Because this is the only path, I hope they will continue on it.
Then we should be able to give relief to the people earlier than expected. But if we move on a different path, and go back to 4-5% deficit, then things would be worse. There is strong commitment on the part of both monetary and fiscal authorities to keep to the original programme. We need the support of the private sector and the general public also for this strategy to come to fruition,” Dr. Weerasinghe said.
Business
Sri Lanka eyes India grid link as ADB pushes Pan-Asia energy integration
Sri Lanka’s long-discussed electricity grid connection with India is gaining renewed momentum, as the Asian Development Bank (ADB) intensifies efforts to promote cross-border energy integration across the region.
At the ADB Annual Meetings in Samarkand, Senior Director for Energy, Priyantha Wijayatunga, identified the proposed India–Sri Lanka grid interconnection as the most promising avenue to strengthen the island’s power sector. The concept dates back to the 1970s, when Sri Lanka, following the completion of the Mahaweli Development Project, even explored the possibility of exporting electricity. However, rapid economic growth and rising domestic demand shifted the country toward energy imports.
Today, with energy security and cost pressures mounting, the idea has regained urgency. “The time is right,” Wijayatunga said, stressing that political will and financing will be decisive. While undersea transmission cables make the link technically viable, costs remain a major challenge. The ADB, he confirmed, stands ready to support Sri Lanka as a development partner in advancing the project.
Sri Lanka’s prospects are closely tied to a broader regional vision being advanced by the ADB through its Pan-Asia Power Grid Initiative (PAGI). The initiative aims to transform how energy is produced, shared, and consumed across Asia and the Pacific by promoting cross-border electricity trade and grid connectivity.
PAGI is designed not merely as a collection of projects, but as a systems-level integration platform that connects national grids into subregional and eventually continent-wide networks. Its core objectives include bridging energy gaps, enhancing energy security, integrating large-scale renewable energy, and strengthening resilience across interconnected systems.
A key pillar of PAGI is leveraging the region’s resource complementarity. Countries in South Asia, for instance, possess uneven but highly complementary energy resources—hydropower in Nepal and Bhutan, and solar and wind potential in India. By linking grids, countries like Sri Lanka could tap into these diverse energy sources, reducing dependence on costly fossil fuel imports while improving reliability.
ADB estimates suggest that deeper regional power trade in South Asia could yield substantial economic benefits, including lower system costs and more efficient energy distribution. The initiative also envisions mobilizing up to $50 billion in investments by 2035, expanding transmission infrastructure, and improving electricity access for millions.
For Sri Lanka, integration into such a regional grid could be transformative. A connection with India would allow the country to import affordable electricity during shortages, stabilize supply, and support its transition toward cleaner energy. It could also open the door to future participation in a wider South Asian power market.
With feasibility studies and policy discussions already underway, and with ADB backing firmly in place, Sri Lanka’s long-envisioned grid connection with India now appears more achievable than ever.
As the Samarkand meetings underscore the urgency of regional cooperation in an increasingly uncertain energy landscape, Sri Lanka stands at the threshold of a new chapter—one where energy security is strengthened not in isolation, but through connection.
by Sanath Nanayakkare in Samarkand, Uzbekistan
Business
Oceans in crisis: Sri Lanka hosts ‘Sharks International 2026’ amid stark warnings
Sri Lanka this week finds itself at the centre of a deepening global ocean crisis, as leading scientists, policymakers and conservationists gather in Colombo for Sharks International 2026—a high-profile summit unfolding against mounting evidence that the world is rapidly losing control of its marine ecosystems.
The conference, now underway at the Bandaranaike Memorial International Conference Hall, marks the first time the prestigious forum has been hosted in Sri Lanka. But beneath the diplomatic language and scientific exchanges lies a far more urgent reality: the collapse of shark and ray populations is no longer a distant environmental concern—it is an unfolding economic and food security emergency.
More than 100 million sharks and rays are being wiped out globally each year, largely due to overfishing and illegal, unreported and unregulated (IUU) fishing. In Sri Lanka, the situation is particularly acute. Of the 105 species recorded in local waters, nearly 70 are now threatened with extinction, a statistic that scientists warn should set off alarm bells far beyond conservation circles.
Deputy Minister of Environment Anton Jayakody did not mince words when addressing the gathering, framing the issue not just as an ecological tragedy but as a looming economic shock.
“This is not just about saving species. It is about protecting the foundation of our fisheries, our food systems, and the livelihoods of thousands of Sri Lankans. If shark and ray populations collapse, the consequences will ripple through the entire marine economy,” he said.
Sharks and rays sit at the top of the ocean food chain. Their disappearance disrupts the delicate balance of marine ecosystems, triggering cascading effects that can decimate commercially valuable fish stocks. For a country like Sri Lanka—where coastal communities depend heavily on fisheries—this is not an abstract threat but a direct challenge to economic stability.
Yet despite years of warnings, critics argue that global action has been dangerously slow, fragmented, and often undermined by competing commercial interests.
By Ifham Nizam
Business
SriLankan Airlines leads with two category wins in South Asia at PAX Awards
SriLankan Airlines led with two wins in the Airline Award category for South Asia, securing both Best Overall Passenger Experience and Most Improved Airline at the PAX International Readership Awards 2026 held recently in Hamburg, Germany. The awards celebrate the industry’s best and brightest, with winners determined by votes from PAX’s global readership.
The Best Overall Passenger Experience – South Asia award recognises an airline that delivers an exceptional onboard experience to passengers across multiple service areas, including meal service, inflight entertainment and seating. At SriLankan Airlines, this entails meticulous planning at every stage of the passenger journey, supported by collaboration among multiple teams and continuous monitoring and refinement.
Maria Sathasivam, Manager Product Development of SriLankan Airlines, commented on the achievement, stating, “we are incredibly honoured to receive yet another independent endorsement of the service we deliver. Every interaction matters to us, and we are committed to consistently meeting and exceeding passenger expectations, and it is truly rewarding to see these efforts recognised.”
SriLankan Airlines continues to enhance the end-to-end travel experience, from booking through to arrival. Ongoing digital upgrades, including improvements to the airline’s website and app, are designed to deliver a more intuitive and seamless customer experience, supported by AI-driven features and expanded ancillary offerings. At its hub, the Bandaranaike International Airport in Colombo, the airline has also expanded self-check-in and bag drop facilities for added convenience.
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