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Geographical Indications for Sri Lankan products: The need to expand local registration

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Sri Lanka obtained its first-ever Geographical Indication (GI) certification on 02 February 2022 for ‘Ceylon Cinnamon’ from the European Union due to untiring efforts during the last nine years. Ceylon Cinnamon is now in the register of Protected Designations of Origin and Protected Geographical Indications (PGI) and it was published in the Official Journal of the European Union. Can we similarly market and protect distinctive Sri Lankan products such as Ceylon Tea, Ceylon Blue Sapphire, Ruhunu Curd, Dumbara Mats, Ambalangoda Masks and so on? Yes, marketing and protecting geographically unique products are possible by implementing a robust GI system with local registration to support obtaining international registration and protection.

What is a GI?

GI is a labelling system that identifies a product originating from a specific geographical area. It recognises qualities, characteristics, or the product’s reputation that are importantly linked or attributable to its location. The environmental and human factors in such areas help create a high-quality product. An Intellectual Property Right (IPR), GIs protect producers in the identified geographical location who meet the specific standards listed in the GI registration. More than 160 countries have already implemented GI systems for agriculture, handicrafts, food, and wine products. India, Thailand, Vietnam, Indonesia, and Cambodia are some of Sri Lanka’s Asian neighbours which enjoy GI’s economic and social benefits. For example, India introduced GI in 2003 and has registered nearly 400 products, of which more than 100 products are in agriculture. Thailand also introduced GIs in 2003, and by 2019, there were about 100 GI-protected products covering rice, vegetables, fruits, wine, and spirits.

Economic and Social Benefits of GIs

Both developed and developing countries have identified GIs as a potential tool to improve the agriculture and traditional handicrafts sectors by assuring the quality of the products. As in other forms IPRs, GIs also attempt to solve market failures such as information asymmetry. The economic benefits of GIs for producers are similar to the benefits of protecting trademarks and patents. It rewards producers from a geographical area and prevents outside producers who do not meet the production requirement from using such benefits.

Producers receive increased profits by obtaining a price premium for their geographically specific, high-quality products. Studies have shown that the price premium for GI products increase from 20% to 50% compared to non-GI products. For example, in the European Union (EU), the price of a GI product has been estimated to be 2.23 times higher than that of a comparable non-GI product (on average, 1.5 times more for agro-food products). As a policy instrument, GIs have positive implications for protecting indigenous knowledge and generating livelihoods and income for all stakeholders in the value chain. A strong GI eco-system will also attract new investments to the selected regions, thereby boosting the socio-economic development of rural areas. Thus, the country will gain several socio-economic benefits with a GI system.

GI in Sri Lanka: Slow Progress of Local Registration

According to Sri Lanka’s existing IP law, GIs can be protected in three methods. First, as a trademark law in the form of certification mark or a collective mark; second, as a mode of business practice which prevents unfair competition and provides consumer protection; and third, as a sui generis system – i.e. a system of its own. The World Trade Organization’s (WTOs), Trade-Related Intellectual Property Rights Agreement ( TRIPs) agreement does not impose any method and it is based on the country’s legal system. Some countries may have two or three protection systems, and there are pros and cons in each system. It is said that the sui generis system offers the most comprehensive protection for GIs. Internationally most of the countries that use sui generis protection system have a registration system where GIs are registered in a national registry governed by the national authorities.

Sri Lanka obtained certification marks for ‘Ceylon Tea’ in 2010 and ‘Ceylon Cinnamon’ in 2013 which provide local registration for these goods. However, Sri Lanka has not been able to expand local protection for several other similarly unique products yet due to several reasons. The absence of a national registry in the sui generis system and the costly nature of obtaining trademark protection, which require annual renewals, are among the most salient reasons. Added to this, the relevant authorities are not actively identifying potential products and encouraging stakeholders to protect their unique products. Furthermore, stakeholders, especially producers, are not aware of the GI system and there is no mechanism to support stakeholders to obtain local GI registration. The delay in local registration hinders the international registration as it is a prerequisite to go for international registration.

In 2018, as an initial step to create a national registry system for Sri Lanka, an amendment to the existing IP Act was introduced. The amendment confers power to the Minister to prescribe geographical indication in respect of any goods or products. However, as several legal and academic practitioners highlighted, the selection criteria, application procedure, and the modalities of how the GI is prescribed were not specified in the 2018 amendment. A new amendment on the GI registration system which introduces the procedure was tabled in the Parliament this year, the quick passage of which would be beneficial for Sri Lankan producers looking at securing GIs for their products.

Way Forward

A strong GI eco-system motivates all stakeholders in the value chain to protect the uniqueness of their products. This can significantly boost economic development. Therefore, Sri Lanka needs to swiftly pass the new amendment to the IP Act to enable the implantation of a local GI registration system. Equally, it is necessary to identify potential GI products with stakeholders’ support, encourage and build the capacity of relevant agencies for quality control, and encourage producers at the grassroots level to work towards securing GI certification. Further, it is essential to create a mechanism to link stakeholders with the relevant government agencies to obtain local registration initially and then go for international registration. Most importantly, creating awareness among all value chain actors is crucial as they are – finally – the intellectual property owners of their products.

Link to the full Talking Economics blog: https://www.ips.lk/talkingeconomics/2022/03/07/geographical-indications-gis-for-sri-lankan-products-the-need-to-expand-local-registration/

Dilani Hirimuthugodage is a Research Economist at IPS with research interests in Agriculture and Agribusiness Development, Environment, Natural Resources and Climate Change, and Intellectual Property. She holds a BA in Economics with a Second Class (Upper) and Masters in Economics (Distinction Pass) from the University of Colombo. In addition, she is a part-qualified candidate of CIMA-UK. (Talk with Dilani: dilani@ips.lk).

Piyumi Rasangi was a Project Intern at IPS’ Agriculture & Agribusiness Development team.


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Business

Dialog delivers a strong first quarter performance

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2025/05/10

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Dialog Axiata PLC announced its consolidated financial results for the three months ended 31st March 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

The Group delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Tele-infrastructure businesses recording a positive Revenue growth of 4% Year on Year (“YoY”) to reach Rs43.3Bn for Q1 2025. On a Quarter on Quarter (“QoQ”) basis Revenue declined by 5% owing to conscious scaling down of low margin international wholesale business amounting to Rs1.7Bn for Q1 2025. Group Core Revenue was recorded at Rs41.4Bn for Q1 2025, up 20% YoY albeit declining 2% QoQ due to days impact. Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) recorded a growth of 45% YoY to reach Rs19.7Bn albeit declining 7% QoQ due to moderate decline in core Revenue.

Headline EBITDA margin improved 12.8 percentage points as compared to Q1 2024. The Group Net Profit After Tax (“NPAT”) was recorded at Rs4.1Bn for Q1 2025 up 49% YoY albeit declining 39% QoQ. Dialog Group continued to be a significant contributor to state Revenues, remitting a total of Rs14.8Bn to the Government of Sri Lanka (“GoSL”) during Q1 2025. Total remittances included Direct Taxes and Levies amounting to Rs4.5Bn as well as Rs10.3Bn in Consumption Taxes collected on behalf of the GoSL. The Group continues to remain steadfast to meet growing demand from both retail and corporate sectors, whilst also ensuring seamless experience and leadership in Sri Lankas’ Broadband and ICT sectors. Dialog mobile network was recognised by third party network monitoring platform as the leader across 5G Experience, Coverage and Overall Experience. The Capital expenditure (“Capex”) for Q1 2025 reached Public

Rs3.7Bn representing an increase of 36% YoY. As a result of improved performance and controlled Capex, the Group recorded Operating Free Cash Flow (“OFCF”) of Rs12.3Bn for Q1 2025 up 71% YoY and >+100% QoQ.

In the recent quarter, Dialog was honoured as the ‘Telecommunication Brand of the Year’ for the 14th consecutive year and the ‘Service Brand of the Year’ for the 4th time at the SLIM-KANTAR People’s Awards 2025, held on March 18, 2025. This recognition, awarded based on the voice of the people, reflects the strong affinity with Sri Lankans over the years. Dialog was also recognized at the ACCA Sustainability Reporting Awards 2024, winning the ‘Non-Financial Services Category’ for its exemplary commitment to sustainability and transparency. This achievement reflects the company’s ongoing efforts to integrate sustainability into its business strategy and operations.

At an entity level, the Company continued to contribute a major share of Group Revenue (74%) and Group EBITDA (72%) during the quarter. Company Revenue was recorded at Rs32.3Bn up 26% YoY due to consolidation of Airtel business and stable pricing in the consumer space. On a QoQ was down 1% owing to days impact. EBITDA was recorded at Rs14.2Bn for Q1 2025 representing a growth of 63% YoY on the back of strong revenue performance and moderation in cost increase. On a QoQ basis EBITDA declined by 21% due to higher Network and Manpower costs. The Company NPAT was recorded at Rs2.9Bn for Q1 2025, up 78% YoY albeit declining 64% QoQ. Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television space, maintaining a strong subscriber base of over 1.6Mn as of end Q1 2025. DTV Revenue reached Rs3.1Bn for Q1 2025, remaining stable YoY albeit declining 6% QoQ due to slow down in subscription revenue and days impact. DTV EBITDA was recorded at Rs475Mn a growth of 3% YoY whilst declining 29% QoQ largely in line with the revenue movement. NPAT was recorded at a negative Rs367Mn for the quarter. Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs9.0Bn for Q1 2025, down 38% YoY and 17% QoQ. The headline Revenue decline was due to the scaling down of low margin international wholesale business. The Core Fixed Business recorded a Revenue of Rs7.8Bn for Q1 2025, up 6% YoY and 2% QoQ. The EBITDA Public for DBN grew 24% YoY and 82% QoQ to record at Rs5.0Bn for Q1 2025, driven by decline in Network and Manpower costs. NPAT reached Rs1.6Bn for Q1 2025 increasing 72% YoY. More details are available at the following links:

Dialog Axiata PLC direct weblink: https://www.dialog.lk/financial-report-archives#quaterly-reports

CSE direct weblink: https://www.cse.lk/pages/company-profile/company-profile.component.html?symbol=DIAL.N0000

Dialog sustainability: https://www.dialog.lk/sustainability

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Hachajah puts Sri Lanka on the global music map with double win at the CARAs

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2025/05/10

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hachajah - Double-Award Winner at CARA 2025. (From left) Alexander Koutzoukis, BOSS executive producer - CASA; hachajah; Anthony Pulido, Chief of Staff - CASA; and Jessica Chen, Director of Awards - CASA

Sri Lanka celebrates a moment of immense national pride as hachajah – the artistic moniker of Colombo-born singer, songwriter and producer Charith Peris — secures two prestigious accolades at the Contemporary A Cappella Recording Awards (CARAs), hosted by the Contemporary A Cappella Society (CASA). These global awards, considered the highest honour in recorded a cappella music, have previously recognised internationally acclaimed acts like Pentatonix, now a household name in the genre.

hachajah’s debut EP, No Place Like, was awarded Best Semi-Professional Post-Collegiate Album or EP, while his poignant single Colombo Sky earned Best Song by a Solo Performer. With eight nominations and runner-up honours in two additional categories, this debut marks a breakout moment for the artist – and a significant cultural win for Sri Lanka.

“Winning a CARA was a personal dream. To win two with my first EP is surreal,” hachajah shares. “These awards are an honour to receive, as they recognise my journey, my Sri Lankan roots, and the stories I carry through music.”

Known for his distinctive fusion of pop a cappella with traditional Sri Lankan narratives and musical elements, hachajah crafts songs that are both deeply personal and widely resonant. Drawing from his experiences growing up in Colombo during the civil war, his music explores themes of identity, longing, and cultural memory.

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Business

An innovative Rotary program to promote values in children

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2025/05/10

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Season 4 Honda Purudu Championship Finals were held at the Temple Trees Auditorium on the 27th of April, with the Rotary district governor, Sushena Ranatunga, as the chief guest. The governor enlightened the audience, filled with teachers, principals and other educators the importance of bringing back the lost values in our country. He thanked the children for learning and expressing these important values using performing arts and advised them to make them part of their daily lives.

Children in Sri Lanka are navigating a world filled with complex moral dilemmas and often lack the guidance to cultivate essential values like kindness, honesty, and respect. Honda Purudu Championship is part of the Little Minds Strong Values (LMSV) program, conceptualised by Rotarian Rukshan Perera, supported by the Rotary Club of Colombo Metropolitan, and collaborated with the Ministry of Education to roll out to schools around the country. LMSV attracts the children with engaging, value-embedded, video-animated songs that teach core values while inspiring the child

ren to express these values and perform skits in school and join the Honda Purudu Championship through the performing arts. This process aspires to place values education at the forefront of children’s lives (in school and at home) and mould the next generation to become compassionate and responsible leaders.

HONDA PURUDU CHAMPIONSHIP: The annual Honda Purudu Championship further encourages children and schools to participate and sustain these values while winning Awards & Certificates. It is open to preschoolers, primary and secondary schoolers in the Solo and Group categories. As a byproduct, the children continue to enhance their talents in the performing arts.

Season 4 LMSV Championship has made remarkable strides with more than 11,000 children showcasing active engagement nationwide, with schools embracing LMSV values in various innovative ways, benefiting thousands of children. The professional judges selected 140 children, and they were invited to the finals in Colombo. They came from North, South, East and West – Jaffna, Ampara, Batticaloa, Galle, Kalutara, Kandy, Badulla, and several other big cities and small towns. Children selected LMSV songs of their choice to eagerly express these values via Song, Dance, Speech, and Drama. In the process, they surprised the audience with their fabulous talents, wearing beautiful costumes, expressing these values in the mediums they enjoy, and elevating the afternoon to an impressive event.

The principals, teachers and other educators spoke very highly of the event; “We are thankful to the Ministry of Education and Rotary for introducing LMSV to schools”, “This is an innovative program for children to build future leaders with good morals”, “Every child must be exposed to the LMSV program to build the future of our country”…etc.

COMPREHENSIVE WEBSITE TO DRIVE THE PROCESS: LMSV website WWW.LMSV.LK provides a comprehensive platform that connects educators with integrated tools in one seamless experience. It’s a one-stop shop for teachers, parents, students, and the community to learn the program via online tutorials, guides, and presentations.

This is an annual event organised by the Rotary Club of Colombo Metropolitan, and we welcome all school principals, teachers and parents around the country to help the children join the Honda Purudu Championship and learn these important values for life. Season 5 will begin in May 2025.

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