Business

Celebrating 20 years of PMI Colombo, Sri Lanka Chapter:A call to transform public project governance

Published

6 months ago

2025/09/2

Bridges – chief among important public utilities.

Twenty years ago, a group of passionate professionals laid the foundation for the Project Management Institute (PMI) Colombo, Sri Lanka Chapter, with a shared vision: to promote world-class project management practices in our nation. As a founding member and the first chairman, I look back with pride at how far we’ve come but I also look ahead with concern and urgency.

I recognized the critical importance of project management skills in Sri Lanka during a pivotal period in my career. In 2002, I was involved in advising on the project management of SLT’s new billing and Operations support system (OSS) system.

Same year, following the acquisition of Mobitel by SLT, I led a major transformation initiative as CEO/ of Mobitel transitioning the mobile network from TDMA to GSM, implementing large-scale IT modernization, and relaunching the Mobitel brand with a completely new infrastructure.

Through these experiences, it became clear to me that Sri Lanka faced a severe shortage of qualified project management professionals. With this realization, I engaged with several like-minded professionals to establish the PMI Colombo, Sri Lanka Chapter, with the aim of promoting world-class project management practices.

PMI certification has made significant contributions to Sri Lanka’s professional landscape. Today, the country boasts over 1,400 certified PMPs, many of whom hold leadership positions in top private sector organizations.

Over the past two decades, several universities and higher education institutions in Sri Lanka have acknowledged the value of PMI standards by introducing project management as a core subject within their academic curricula. As a result, more than 5,000 Sri Lankan professionals have earned PMP® certification, with many now serving in high demand roles across the globe. Of these, around 1,400 PMPcertified professionals continue to contribute within Sri Lanka.

However, despite this impressive growth in certifications, the persistent rate of project failures and inefficiencies indicates that project management best practices are still not being fully embraced, particularly in the management of projects and programs. There is a clear gap between certification and effective application highlighting the need for organizations, especially in the public sector, to embed project management principles into their organizational culture to ensure successful outcomes.

Sri Lanka’s poor portfolio, program, and project management has led to consequences that are wide-ranging, deeply damaging, and longlasting. Below are some of the key effects: 1. Massive Waste of Public Funds

• Projects exceed budgets or are abandoned midway.

• Billions in taxpayer money are lost with little or no return on investment.

• Resources are misallocated to low-priority or politically motivated initiatives.

2. Failure to Deliver Essential Services

• Infrastructure like hospitals, schools, roads, and utilities are delayed or built below standard.

• Citizens are deprived of critical services, worsening inequality and public frustration.

3. Increased Corruption and Fraud

• Weak systems are exploited through bribery, inflated contracts, and unqualified vendors.

• Procurement becomes a major area of leakage and malpractice.

4. Economic Instability and Low Investor Confidence

• Unreliable execution of national development plans discourages foreign direct investment (FDI).

• Projects don’t generate the expected economic returns or job opportunities.

5. Strategic Misalignment and Policy Failure

• Projects are launched without alignment to national goals or sectoral needs.

• Governments fail to deliver long-term outcomes like sustainability, digital transformation, or inclusive growth.

6. Poor International Reputation

• Repeated portfolio management and project failures attract negative attention from donors, lenders, and rating agencies.

• Difficulty securing grants, loans, or international partnerships.

7. No Culture of Learning

• Without structured portfolio and program oversight, lessons are not captured or applied.

• Mistakes are repeated across decades and sectors.

8. Frequent Project Resets and Abandonment

Projects are halted or re-scoped with each political cycle, wasting prior investments.

• Lack of continuity undermines public trust in institutions.

9.. Erosion of Public Trust

• Citizens lose faith in the government’s ability to deliver promises.

• Leads to political instability, social unrest, or apathy toward public engagement.

Despite advancements in education and access to global frameworks, Sri Lanka continues to witness a disturbingly high rate of project failure in the public sector. My view is that nearly 80% of government-funded projects fall drastically in terms of cost, time, scope, quality, and public benefits.

This 20th anniversary is more than a milestone, it is a moment of reflection. It invites us to look back not only at our achievements, but also at the lessons learned, the opportunities missed, and the values we may have compromised along the way. It is a time to renew our commitment with a focus on increasing project success, maximizing benefit realization, and upholding greater integrity so that the next chapter is shaped by wisdom, accountability, and meaningful progress.

The Harsh Realities: What’s Going Wrong?

1. Project Failure and Waste

Many public projects fail due to poor Business case, planning, unrealistic budgeting, and weak execution. We see massive cost overruns, extended delays, and unsatisfactory outcomes, which ultimately result in public frustration and economic stagnation.

2. Corruption, Bribery, and Fraud

The leakage of public funds due to corrupt procurement and other Project Management practices, bribery, and non-transparent contractor relationships is a systemic issue. These failures drain national resources and damage public trust.

3. Output Over Outcome

Projects are often measured by physical completion, a road, a bridge, a building rather than the real value delivered to citizens, such as usability, accessibility, economic stimulation, or improved well-being.

Most Sri Lankan project managers tend to focus narrowly on delivery deadlines and budgeting, often overlooking the full spectrum of key project management knowledge areas. This limited focus can lead to poor stakeholder engagement, unmanaged risks, scope creep, and quality compromises. Globally recognized frameworks such as those outlined in the PMBOK® Guide highlight the importance of integrating all essential knowledge areas including scope, schedule, cost, quality, resource, communication, risk, procurement, stakeholder, and integration management. Each of these areas plays a critical role in ensuring not just delivery, but sustainable success and long-term value. In today’s complex and dynamic environments, mastering these interconnected disciplines is vital for driving project benefits.

4. Lack of Monitoring and Post-Project Review Most projects lack rigorous post-implementation reviews to assess benefit realization. Public accountability ends with ribbon-cutting, not with long-term results.

In recent years, government audits and COPE (Committee on Public Enterprises) inquiries have consistently revealed that inefficiencies, corruption, and poor project performance are often rooted in weak project management practices. The root causes typically include poorly developed business cases, flawed procurement processes, inadequate project planning, weak execution, insufficient monitoring and control, and the absence of structured project closure.

However, it is unfortunate that government agencies continue to overlook the root causes of project failures namely, professional competence, the lack of ethics and capacity in project and program management.

As we mark two decades of the PMI Colombo Chapter, I make a strong and respectful appeal to the Government of Sri Lanka, as project management is key to national transformation:

To be Continued

By Lalith de Silva

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Business

Bathiya & Santhush make a strategic bet on Colombo

Published

3 hours ago

2026/02/23

Thilina Walpola

Bathiya and Santhush

Construction giant Sanken Lanka behind the move

When Bathiya & Santhush took their seats alongside Rohit Sachdev, CEO and Founder of Soho Hospitality, at a recent press briefing in Colombo, it seemed at first like a courtesy appearance. Moments later, it became the headline: the duo were introduced as co-investors in Charcoal Tandoor Fire Grill’s Colombo debut.

That revelation that Bathiya and Santhush are not merely endorsing but co-owning the restaurant venture alongside Sanken Lanka, the company behind the Capitol TwinPeaks skyscraper is likely to resonate strongly with Sri Lankan audiences.

Charcoal Tandoor Fire Grill will open on the 50th floor of Capitol TwinPeaks at Union Place – home to Colombo’s tallest sky bridge, rising nearly 600 feet above the city. The Bangkok-born brand marks the first South Asian expansion of Soho Hospitality’s flagship Indian dining concept.

Founded in 2014 in Bangkok, Charcoal built its reputation by reinterpreting North Indian tandoor traditions and Mughlai richness through a contemporary, design-led lens. Live fire cooking, layered spice profiles and slow techniques define its culinary identity – dramatic yet calibrated.

For Bathiya, the investment is rooted in artistic kinship.

“Rohit is passionate about what he is doing,” he said. “His culinary art goes parallel to our showbiz in its finer details. We wanted Sri Lankans to devour that delicacy. We wanted to bring that brand excellence to our shores.”

Santhush drew an even broader connection between gastronomy and performance.

“For three decades we’ve worked to make Sri Lankan music a global product – to create that Sri Lankan musical vibe felt across the world,” he said. “Hospitality is part of the entertainment landscape. We take music and events to the outside world. Now we wanted to bring a global product and experience home.”

He likened Sachdev’s precision in the kitchen to orchestral mastery. “He works like a master of an orchestra – going into intricate details in his culinary art as we sift through every frequency of sound.”

Sachdev described Sri Lanka as a deliberate, data-driven choice for Charcoal’s first step beyond Thailand.

“Charcoal has always been built on heritage, movement and exchange – of flavours, ideas and experiences,” he said. “Sri Lanka felt like a natural step beyond Thailand. We see strong long-term fundamentals in Colombo, from tourism growth to an increasingly discerning dining audience.”

Colombo’s positioning at the crossroads of South Asia, the Middle East and Southeast Asia aligns neatly with Charcoal’s “Spice Route” narrative — a concept inspired by historic trade routes that blended flavours and commerce across regions.

Bathiya and Santhush built their careers by exporting Sri Lankan creativity to the world stage. Now, in a reversal of that flow, they are importing a globally recognised hospitality brand — embedding it within Colombo’s evolving skyline, backed by Sanken Lanka.

By Sanath Nanayakkare

Business

Sampath Group posts record Rs 53 billion profit; assets surpass Rs 2 trillion in 2025

Published

3 hours ago

2026/02/23

Thilina Walpola

The strongest financial performance in its history

Sampath Group has delivered the strongest financial performance in its history for the year ended December 31, 2025, recording a Profit Before Tax (PBT) of Rs 53.0 billion and a Profit After Tax (PAT) of Rs 32.6 billion. This marks year-on-year growth of 8% and 13% respectively, solidifying the Group’s position as one of Sri Lanka’s most resilient and forward-thinking financial institutions.

The Group also surpassed a significant milestone with its total asset base crossing the Rs 2 trillion mark—up 12% from 2024—reflecting strong credit expansion and prudent portfolio management.

The Sampath Bank, the Group’s flagship entity, continued to be the main engine of growth, posting its highest-ever profitability with a PBT of Rs 49.3 billion and PAT of Rs 30.2 billion—up 5% and 11% respectively. Adjusted for the one-off gains from the 2024 restructuring of Sri Lanka’s international sovereign bonds, both PBT and PAT grew an impressive 22%.

Driven by strong credit momentum, the Bank’s gross loan book expanded by Rs 259 billion (27%), reaching Rs 1.2 trillion by end-2025. Deposits rose 12% to Rs 1.65 trillion, underscoring the Bank’s trusted franchise and continued market confidence.

Shareholders benefited from a higher final dividend of Rs 10.30 per share, up Rs 0.95 from last year, with a payout ratio of 39.98%. The Bank’s Return on Equity (ROE) edged up to 17.93% (2024: 17.74%), while Return on Assets (ROA, before tax) stood at 2.60%.

Sampath Bank also reinforced its robust balance sheet, ending the year with Tier 1 and Total Capital Adequacy Ratios of 14.75% and 17.65% respectively—well above regulatory requirements. Liquidity remained strong with a Liquidity Coverage Ratio of 239.79% and Net Stable Funding Ratio of 173%.

Gross income grew 12% to Rs 218.8 billion, supported by the Bank’s diversified earnings base. Interest income dipped marginally by 1% to Rs 181.1 billion, reflecting lower market rates, but was offset by significant growth in non-fund-based income streams.

Net fee and commission income rose 21% to Rs 21.2 billion, buoyed by increased economic activity, higher card usage, and process efficiencies. Notably, the Bank recorded a Rs 6.5 billion trading gain, reversing a Rs 2.8 billion loss in 2024—largely due to exchange gains following a Rs 16.63 depreciation of the rupee against the dollar.

In a major turnaround, Sampath reported an impairment reversal of Rs 0.6 billion, supported by recovery efforts, lower Stage 2 and Stage 3 loan exposure, and improved customer repayment capacity. Stage 3 loans dropped to 9.6% from 13.7% in 2024, while Stage 2 fell to 7.6% from 15.7%.

Operating expenses increased 19% as the Bank accelerated investments in technology, staff expansion, and strategic initiatives aimed at long-term growth. Consequently, the cost-to-income ratio rose slightly to 42.7%.

Sampath Bank remained one of the largest contributors to government revenue, paying over Rs 39 billion in total taxes during 2025, compared with Rs 33.8 billion the previous year. Its effective tax rate was 52.3%.

The Sampath Group continues to broaden its financial presence, operating four subsidiaries—Siyapatha Finance PLC, Sampath Securities (Pvt) Ltd, Sampath Information Technology Solutions Ltd, and Sampath Centre Ltd. In January 2026, it established a new wealth management arm to meet emerging customer needs, pending regulatory approval.

Reaffirming its leadership in sustainability, Sampath Bank expanded its ESG-driven initiatives under its “Wewata Jeewayak” program, restoring its 28th village tank to support rural agriculture. The Bank also continued its coral and mangrove restoration, forest replantation, and turtle conservation projects.

In a pioneering move, the Bank implemented Sri Lanka’s SLFRS S1 and S2 standards under its Climate First Action Plan and introduced a Green Fixed Deposit framework with independent assurance for credibility and transparency.

Responding to the devastation of Cyclone Ditwah, Sampath Bank donated Rs 100 million to the “Rebuilding Sri Lanka” fund, alongside humanitarian aid to the Sri Lanka Red Cross and Air Force.

“Our record-breaking performance in 2025 reflects not just financial resilience, but a steadfast commitment to national progress and sustainable growth,” said Sanjaya Gunawardana, Managing Director and CEO of Sampath Bank PLC.

Business

NSB honoured for governance and transparency

Published

4 hours ago

2026/02/23

Thilina Walpola

The Gold Award, bagged by NSB, highlights the Bank’s continued dedication to maintaining high standards of disclosure and stakeholder engagement.

National Savings Bank (NSB) has been awarded the Gold Award in the State Bank Category at the TAGS Awards 2025, organized by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka). Celebrated under the theme “Diamond Chapter – The Grand Honour of Excellence,” the awards recognize organizations that demonstrate exceptional commitment to transparency and governance through their annual reports.

The Gold Award, bagged by NSB, highlights the Bank’s continued dedication to maintaining high standards of disclosure and stakeholder engagement while strengthening governance and accountability across all operations. The rigorous evaluation process assesses not just financial performance, but also how effectively organizations communicate strategy, sustainability initiatives, and long-term value creation.

Chairman Dr. Harsha Cabral PC, accepting the award alongside the NSB team, stated that the recognition is a testament to the collective efforts of the Board, Management, and staff in upholding the highest standards of corporate governance and responsible banking. He noted that maintaining transparency remains fundamental to sustaining public trust, particularly as NSB advances its digital transformation journey while supporting national economic development.

The achievement reflects the Bank’s disciplined financial stewardship and its commitment to presenting a forward-looking account of its performance.