Business

Female-heads of households see their struggles compounded by pandemic

Published

4 years ago

2021/01/29

The pandemic has highlighted the urgency of economic empowerment for women and girls all over the world. But there is a particular urgency to address the challenges being faced by female-headed households, which make up over a quarter of Sri Lankan homes.

Tharshani, now 45, had already been struggling to make ends meet since her husband died 15 years ago due to the conflict. But since the COVID-19 pandemic and lockdowns that started last year, her income from poultry farming has dropped, and her eldest daughter, who they relied on for household expenses, has found no daily-wage work.

“During the lockdown we had to take loans from our neighbours,” said Tharshani (not her real name). “We were struggling to find money for food, and my son had to go to school every day without breakfast. I was afraid he might not be able to continue his education,” said the mother of three.

Tharshani’s story is by no means unusual in Sri Lanka, where over a quarter of households (25.8% percent, or 1.4 million) are headed by women. More than half of those are run by widows – more than one in 10 of all the country’s households. Many of those lost their husbands in the civil conflict that ravaged the country from 1983 to 2009.

“Women are losing their livelihoods faster” than men in the pandemic, explained Ramaaya Salgado, Country Focal Point at UN Women in Sri Lanka. “This is because they are exposed to hard-hit economic sectors, have less access to social protections and are more likely to be burdened with unpaid care and domestic work. Female heads of households in particular carry a double burden in caring for their dependants and being the sole breadwinner of the family,” she said.

“Long-term investment in social protection is needed to ensure female heads of households are resilient in the face of crisis situations. Hence, women’s economic empowerment must be at the heart of COVID-19 response and recovery.”

Recovering from the COVID-19 crisis must include urgent policy action to introduce economic support packages for vulnerable women, according to the UN Women publication ‘Gender Equality in the Wake of COVID-19’.

Further, the publication highlights that eliminating inequality in the labour market is more urgent than ever. This includes addressing issues related to occupational segregation, gender pay gaps and inadequate access to affordable childcare. Data on socioeconomic effects as well as improved and up-to-date gender-responsive data collection systems are also vital to understanding the pandemic’s impact on different groups of women.

Last year, with support from the government of Australia (DFAT), UN Women in Sri Lanka together with local NGO Viluthu have supported more than 1,300 female-headed households through the delivery of emergency relief packs including dry rations to meet their daily needs.

“With enough supplies for the next few months, I am now able to save up to cover the costs of my son’s education”, says Tharshani who was also among those that received the emergency relief packs.

2020 marked the 25th anniversary of the landmark Beijing Declaration and Platform for Action, which set out how to remove the systemic barriers that hold women back from equal participation in all areas of life. To ensure economic empowerment of female heads of households like Tharshani, COVID-19 is a reminder that urgent action is needed to invest in the future of women and girls in Sri Lanka, and around the world.

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Business

Industry and Entrepreneurship Development Minister Handunneththi’s visit to Lumala highlights key industrial concerns

Published

14 hours ago

2025/04/5

Thilina Walpola

Minister inspecting along with Lumala factory manager Ranjith Siriwardana (left)

With the aim of assesing the current challenges faced by local industrialists and explore avenues for government support, Minister of Industry and Entrepreneurship Development Hon. Sunil Handunneththi visited City Cycle Industries Manufacturing (Pvt.) Ltd., widely known as Lumala, on March 24 at its factory in Panadura.

During the visit, Minister Handunneththi engaged with senior officials and employees to understand their concerns and operational difficulties. In a statement shared on social media, the Minister acknowledged the pressing challenges affecting Sri Lanka’s manufacturing sector and emphasized the government’s commitment to providing swift and effective solutions.

Minister Handunneththi further reiterated the government’s intent to position local manufacturers as key stakeholders in Sri Lanka’s economy by addressing regulatory hurdles, market imbalances, and supply chain constraints.

The visit comes amid growing concerns from Lumala employees and management regarding the state of Sri Lanka’s bicycle manufacturing industry, in the backdrop of facing significant challenges, including an influx of imported bicycles and components that circumvent regulatory checks. In addition, the high taxes on raw materials used in local manufacturing has further exacerbated production costs, making it difficult for domestic manufacturers to remain competitive.

Earlier this year, Lumala employees called for urgent government intervention to address these challenges, warning that ongoing financial strain could lead to further shutdowns of critical production units, job losses, and setbacks to the broader industrial ecosystem. With a local value addition of 50-70 percent verified by the Ministry, its workforce remains hopeful that government action will help achieve an ethical manufacturing industry.

Lumala, a household name in Sri Lanka’s bicycle industry, has been a key player in sustainable mobility solutions for over 35 years. The company was recently honored with the Best National Industry Brand award under the Large-Scale Other Industry Sector category at the National Industry Brand Excellence Awards 2024.

With a production capacity of 2,000 bicycles per day and a workforce of 200, Lumala continues to cater to both domestic and international markets, producing a diverse range of bicycles, electric bikes and light electric vehicles. In line with Sri Lanka’s goal to expand forest cover to 32 percent by 2030 and cut GHG emissions by 14.5%, Lumala is actively contributing to this mission—both as a company and through its diverse range of products.

As Sri Lanka works towards strengthening its local manufacturing sector, Minister Handunneththi’s visit signals a crucial step toward addressing industrial concerns and reinforcing government support for sustainable and competitive domestic production.

Business

New SL Sovereign Bonds win foreign investor confidence

Published

14 hours ago

2025/04/5

Thilina Walpola

Sri Lanka’s country rating was upgraded from ‘Restricted Default’ to ‘CCC’ following the successful exchange for the new International Sovreign Bonds (SL ISBs) during December 2024. The three types (03) of exciting new sovereign bonds have restored foreign investor confidence.

The Central Bank of Sri Lanka (CBSL) has performed a remarkable role in guiding the economy out of default status and restored economic stability, and gained Sri Lanka a non-default Country Rating of ‘CCC’. Among the key achievements of CBSL, have been to reduce treasury interest rates under 9% and stabilize the currency while rebuilding foreign reserves to $ 6Bn.

SL offers four Macro Linked Bonds (MLBs) linked to GDP growth, a Governance Linked Bond (GLB) and a short term, Fixed Coupon Bond for unpaid Past Due Interest (PDI). The MLBs offer variable returns depending on SL’s GDP growth from 2024 to 2027, (e.g. haircuts can vary between 16% to 39%). The GLB interest can vary depending on meeting 15.3% and 15.4% of Total Revenue/ GDP thresholds in 2026 and 2027 respectively. The PDI bond offers a fixed coupon of 4% until 2028 and trades at around $94.

This combination of unique, variable returns offers global investors an exciting opportunity to capitalize on SL’s economic revival and US interest rate movements. Sri Lanka’s economic resurgence in 2024 was promising, with a 5% GDP growth rate. With improving investor confidence, SL ISB daily turnover now exceeds $10mn.

The Ceylon Dollar Bond Fund (CDBF) is the only USD Sovereign Bond Fund that is exclusively invested in SL ISBs with Deutsche Bank acting as the Trustee and Custodian Bank. The Fund reported returns of 53% in 2023 and 39% in 2024.

We invite foreign investors to enter CDBF while Sri Lanka is rated at ‘CCC’ and consider realizing their investment upon SL reaching a Country Rating of ‘B- ‘. Other advantages of CDBF are, the ability to withdraw anytime and being tax exempted.

Ceylon Asset Management (CAM), the Fund Manager, has commenced an advertising campaign to promote the CDBF to the Sri Lankan Diaspora, South Asian, Middle Eastern and Australian Investors. CAM is an Associate Company of Sri Lanka Insurance Corporation (SLIC) and licensed under the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021.

Meanwhile, the Ceylon Financial Sector Fund managed by CAM emerged as the top performing rupee fund in Sri Lanka during 2024, with a return of 64%. Investors can find out more on www.ceylonassetmanagement.com or write to us on info@ceylonam.com.

Past performance is not an indicator of the future performance. Investors are advised to read and understand the contents of the KIID on www.ceylonam.com before investing. Among others investors shall consider the fees and charges involved.(CAM)

Business

Share market plunges steeply for second consecutive day in reaction to US tariffs

Published

14 hours ago

2025/04/5

Thilina Walpola

CSE plunged at open, falling for the second consecutive day yesterday, down over 300 points in mid- morning trade.US President Donald Trump has imposed a 44 percent tax on Sri Lanka’s exports in an executive order which he claimed, spelt out discounted reciprocal rates for about half the taxes and barriers imposed by the island on America.

As a result both indices showed a downward trend. The All Share Price Index dropped 300 points, or 2.32 percent, to 15,294.94, while the S&P SL20 dropped 101 points, or 2.71 percent, to 4,517.37.

Turnover stood at Rs 3.1 billion with six crossings. Those crossings were reported in Sampath Bank which crossed 1.6 million shares to the tune of Rs 181 million and its shares traded at 109, JKH 4.1 million shares crossed to the tune of 80.5 million and its shares sold at Rs 19.5.

Hemas Holdings 400,000 shares crossed for Rs 45.6 million; its shares traded at Rs 114, CTC 25000 shares crossed to the tune of Rs 32.2 million; its shares traded at Rs 1330, Commercial Bank 200,000 shares crossed for 27 million; its shares traded at Rs 135 and TJ Lanka 157,000 shares crossed for Rs 20 million; its shares traded at Rs 46.

In the retail market top six companies that have mainly contributed to the turnover were; Sampath Bank Rs 296 million (2.9 million shares traded), JKH Rs 220 million (11.2 million shares traded), Haylays Rs 195 million (142,000 shares traded), HNB Rs 151 million (519,000 shares traded), Commercial Bank Rs 138 million (1 million shares traded) and Central Finance Rs 129 million (735,000 shares traded). During the day 218 million shares volumes changed hands in 22000 transactions.

It is said the banking sector was the main contributor to the turnover, especially Sampath Bank, while manufacturing sector, especially JKH, was the second largest contributor.

Yesterday, the rupee opened at Rs 296.75/90 to the US dollar in the spot market, stronger from Rs 296.90/297.20 on the previous day, dealers said, while bond yields were up.

A bond maturing on 15.10.2028 was quoted at 10.35/40 percent, up from 10.25/30 percent.

A bond maturing on 15.09.2029 was quoted at 10.50/60 percent, up from 10.45/55 percent.

A bond maturing on 15.10.2030 was quoted at 10.60/70 percent, up from 10.30/65 percent.

By Hiran H Senewiratne