Business
Compass for more human business
Together with the Board and Team at Global Compact Network Sri Lanka it was an honour to present plans for more sustainable business at Network Sri Lanka’s ‘Compass 2024’ last week. Amidst unprecedented social, economic, health and environmental crises, further complicated by geopolitical tension and conflict, growing inequality and financial stress, there has never been greater urgency to sincerely embrace responsibility in business.
Initiator of Global Compact, the late Kofi Annan advocated greater humanity, “We have to choose between a global market driven only by calculations of short-term profit, and one which has a human face. Between a world which condemns a quarter of the human race to starvation and squalor, and one which offers everyone at least a chance of prosperity, in a healthy environment. Between a selfish free-for-all in which we ignore the fate of the losers, and a future in which the strong and successful accept their responsibilities, showing global vision and leadership.”
Politicians globally have failed to rise to the challenge. Climate change costs the world US$16 million per hour; governments agreed at the COP26 climate summit in Glasgow 3 years ago to phase out “inefficient” fossil fuel subsidies to fight global warming. Yet the IMF reports that global fossil fuel subsidies have since risen $2 trillion to $7 trillion.
The Ten Principles governing Global Compact, define a principles based approach to doing business; human rights, labour, anti-corruption and environment. These and Sustainable Development Goals they connect with, are the human face of business that late Kofi Annan proposed in 1999; they define more humane business; doing the right thing, because it is the right thing to do.
Yet only 15% of the SDGs were on track in 2023 with more than half regressing, stagnating or only partially on track. The first of several key message in the 2023 SDG progress update states, “The SDGs are in peril. The world has entered an age of polycrisis and hard-earned SDG progress is threatened by the climate crisis, conflict, gloomy global economic outlook and lingering COVID-19 effects.”
With the prospect for a better world so clearly and practically set out in the SDGs, the universal lack of progress is impossible to comprehend, prompting current UN Secretary General to observe, “Unless we act now, the 2030 Agenda will become an epitaph for a world that might have been.”
The Global Compact is a blueprint for the collaborative, science based, measurable and impactful actions and outcomes we need to integrate into business. Businesses were desensitized to humanity by flawed economic theory in the 1970s. Yet the truth is that operating without considering social and environmental responsibility implies an abhorrent and extractive form of capitalism that is outdated and parasitic.
Sri Lanka has inspiring examples of responsible corporate initiatives for the benefit of people and planet. That is laudable but together we can do more, especially within the framework for collective and informed actions that the Global Compact embodies.
I am not advocating anything other than genuine capitalism that requires the creation of social and natural value alongside conventional economic value. Anything less would be profiting at the expense of people and nature, effectively theft, from less fortunate people in our community, from Nature and from unborn generations.
My appreciation and respect for the Compass 2024 event and connected plans, to the Global Compact Network Team, led by Executive Director Rathika de Silva, and Network manager Janani Wijetunge, and Global Compact partners UNDP, represented by Resident Representative Azusa Kubota, and Marc-André Franche, United Nations Resident Coordinator in Sri Lanka.
Dilhan C. Fernando
Chair of UN Global Compact Network Sri Lanka
Business
CEB urged to revise Draft Long Term Generation Expansion Plan, in view of renewable energy needs
By Ifham Nizam
The Public Utilities Commission of Sri Lanka (PUCSL) has instructed the Ceylon Electricity Board (CEB) to revise its Draft Long-Term Generation Expansion Plan (LTGEP) 2025-2044, incorporating more robust projections for renewable energy and battery storage, while also reassessing LNG infrastructure and procurement strategies.
The Island Financial Review reliably learns PUCSL Director General Damitha Kumarasinghe emphasized the need for “more robust and realistic cost assumptions for Renewable Technologies and Battery Energy Storage Systems (BESS).”
The Commission stressed that BESS should be valued not just as a renewable integration tool but also for its potential to mitigate power shortages.
The directive also calls for revisions in LNG infrastructure planning, including “a comprehensive analysis covering LNG fuel cost calculation, infrastructure development, procurement contracting options, and risks associated with supply and procurement.” PUCSL has specifically highlighted the importance of evaluating the financial and economic feasibility of a natural gas pipeline from Kerawalapitiya to Kelanitissa.
Kanchana Siriwardena, Deputy Director General – Industry Services, reinforced the Commission’s stance on renewable energy, stating that “further reductions in renewable energy curtailment should be explored by incorporating more BESS.”
The PUCSL’s instructions also mandate incorporating clauses from the Memorandum of Understanding (MoU) with Petronet India, which includes a temporary LNG supply for the Sobadhanavi Plant. The revised LTGEP must also factor in infrastructure costs related to the Floating Storage Regasification Unit (FSRU) and pipeline networks as part of the overall LNG cost calculation.
The CEB is expected to resubmit the revised plan for PUCSL’s approval, ensuring alignment with Sri Lanka’s long-term energy security and sustainability goals.
The PUCSL directive also calls for a comprehensive evaluation of various LNG procurement options and associated risks. These include:
LNG infrastructure development and expansion
Contracting options for LNG procurement
Risks related to LNG supply and procurement stability
Robustness of natural gas demand calculations
Economic feasibility of the proposed natural gas pipeline from Kerawalapitiya to Kelanitissa, given the low plant factors of power stations at Kelanitissa.
Nations Trust Bank PLC reported strong financial results for the twelve months ending 31st December 2024, achieving a Profit After Tax (PAT) of LKR 17 Bn, up 46% YoY.
Nations Trust Bank, Director & Chief Executive Officer, Hemantha Gunetilleke, stated, “The Bank’s performance for the twelve months ending 31st December 2024 showcases our continued growth and expansion across diverse customer segments. Our solid capital position, strong liquidity buffers, effective risk management frameworks, and steadfast commitment to service excellence and digital empowerment remain the key drivers of our success.”
Improvements in the macro-economic environment and successful management of the Bank’s credit portfolio resulted in total impairment charges decreasing by 69% and the Net Stage 3 ratio reducing to 1.6%.
The Bank’s financial performance is supported by its strong capital buffers, with Tier I Capital at 21.47% and a Total Capital Adequacy Ratio of 22.66%, well above the regulatory requirements of 8.5% and 12.5%, respectively.
A strong liquidity buffer was maintained with a Liquidity Coverage Ratio of 320.56% against the regulatory requirement of 100%.
The Bank reported a Return on Equity (ROE) of 24.22%, while its Earnings Per Share for the twelve months ending 31st December 2024 increased to LKR 50.82, against LKR 34.70 recorded during the same period last year.
Nations Trust Bank PLC serves a diverse range of customers across Consumer, Commercial and Corporate segments through multi-channel customer touch points spanning both physical and digital. The Bank is focused on digital empowerment through cutting-edge digital banking technologies, and pioneered FriMi, Sri Lanka’s leading digital banking experience. Nations Trust Bank PLC is an issuer and sole acquirer of American Express Cards in Sri Lanka with market leadership in the premium segments.
Business
Modern Challenges and Opportunities for the Apparel Industry: JAAF drives industry dialogue
The Joint Apparel Association Forum (JAAF), in collaboration with Monash Business School and the Postgraduate Institute of Management (PIM) successfully hosted the International Conference on the Apparel Industry 2025 recently in Colombo. This was the second time the event was held, following its inaugural edition in 2018, as part of JAAF’s commitment to fostering dialogue and collaboration within the global apparel sector.
Themed “Modern Challenges and Opportunities for the Apparel Industry”, the three-day event brought together industry leaders, academics, and sustainability experts to discuss pressing issues such as ESG (Environmental, Social, and Governance) compliance, circular economy strategies, technological advancements, and workforce transformation.
A key highlight of the event was the panel discussion on “Current Actions and Their Impact on ESG-Related Outcomes in the Apparel Industry,” featuring:
Felix A. Fernando – CEO, Omega Line Ltd.
Nemanthie Kooragamage – Director Group Sustainable Business, MAS Holdings
Gayan Ranasinghe – Control Union,
Chamindry Saparamadu – Director General/CEO, Sustainable Development Council
Pyumi Sumanasekara – Principal Partner, KPMG Sri Lanka
Discussions emphasized how Sri Lanka’s apparel industry is adapting to global ESG standards, incorporating sustainable production methods, and aligning with evolving regulatory frameworks.
It is our collective responsibility to build a nation grounded in unity and strength – President
Fairly heavy showers above 75mm can be expected at some places in Eastern and Uva provinces and in Matale, Nuwara-Eliya, Polonnaruwa, Galle, Matara, Kalutara and Rathnapura districts.
USD 900,000 paid monthly for three unused SriLankan aircraft– Dy. Finance Minister
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