Business
HERCapital by Hatch: Pioneering gender smart funding in Sri Lanka
Gender disparity within the entrepreneurial world is a globally prevalent problem, often stemming from the underrepresentation of women in the labour force and leadership positions. This imbalance in diversity is mainly seen in markets with no gender-smart funding, which makes gender a key component in their program.
The lack of gender diversity at the firm level and the unavailability of gender-smart support structures are persistent hurdles faced by women entrepreneurs throughout the region.
Globally, the finance gap between women-led MSMEs (Micro, Small, and Medium Enterprises) and those led by men have shown to be a whopping $ 1.2 trillion. This can be attributed to the significant underrepresentation of women among investment decision-makers at private equity (PE) and venture capital (VC) firms, board representation, and leadership positions.
Moreover, research into the South Asian market has shown that as of 2019, only 45% of firms have a strategy to improve gender diversity in emerging markets, leading to female participation in ownership only being 18%, with only 9.3% of women holding board positions and only 9% of PE and VC funding going into female-led companies; leaving these companies underfunded.
Sri Lanka is no different from the rest of the region, with the lack of an investment ecosystem for female entrepreneurs, leading to only 25% of the country’s entrepreneurs being women, despite women representing majority of the population, accounting for 52%.
Seeing this lack of diversity and the need for a gender-smart funds, Hatch has now introduced HERCapital, Sri Lanka’s first-ever gender-smart funding scheme. The goal of the scheme is to create a better ecosystem for local women entrepreneurs and help increase gender diversity in PE/VC pipelines.
The basis of the scheme will take a strategic approach to investing in entrepreneurs, by taking into consideration gender-based factors throughout the investment process, to advance gender equality and better inform investment decisions.
Such schemes can be seen growing in popularity, with 58.6% of international fund managers choosing to invest through a gender lens. A similar trend was also seen in Asia, with 70% of the active investment vehicles established after 2017, being done through a gender lens.
Hatch’s HERCapital fund aims to pioneer a similar gender-smart funding scheme in Sri Lanka and will empower early-stage startups through a well-structured program that includes mentorship and financial support. The fund will address existing gender inequalities through investment and support more women-led businesses while continuing to champion equal representation within the start-ups funded.
The fund’s gender balance comes from the adoption of practices such as gender analysis, gender due diligence, deal origination, deal structuring, etc, which help promote a more gender-balanced fund.
From the concept to scaling through commercialization, the fund will empower early-stage startups through a well-structured program that includes both mentorship and financial support.
These entrepreneurs will be offered seed funding of USD 25,000 per startup for 5%-20% equity, alongside other benefits such as a 12-week structured program with trainings and workshops, an opportunity to pitch to local and regional VC’s, one-on-one mentoring with dedicated mentors, connections to global accelerator platforms, and free access to Hatch co-working space.
HerCapital is set to have 2 cohorts per year and 10 startups per cohort, with an estimated fund size of USD 1 million, out of which USD 500K will be allocated for seed funding and the other USD 500K for follow-on funding respectively.
The fund will also focus on encouraging disruptive innovations in products, technology, and business models in several areas. These include Agriculture, Education, Health, Energy, Sustainability, IoT, Payment, SaaS, Digital, and MarketPlace.
Based on available market data, HerCapital is expected to increase step-up valuation for companies by 1.64 times, per year in valuation by 5.5%, and profitability by 15%.
The fund has also brought on six industry disruptors to back it as its investment committee, five of whom are women entrepreneurs themselves. They include Sonia Dandona Hirdaramani, Personal Investor (ex-Morgan Stanley), Hayley Evans, CEO of Surge Global, Shehara Jayawardana, the Joint Managing Director of the McLarens Group of Companies, Niloo Jayatilake, the CEO/Director of Softlogic Invest, Zara Mandviwalla Akbarally, Barrister-at-law, and Hatch’s very own Co-founder/Director, Brindha Selvadurai-Gnanam.
Global stocks have sunk, a day after President Donald Trump announced sweeping new tariffs that are forecast to raise prices and weigh on growth in the US and abroad.
Stock markets in the Asia-Pacific region fell for a second day, hot on the heels of the US S&P 500, which had its worst day since Covid crashed the economy in 2020.
Nike, Apple and Target were among big consumer names worst hit, all of them sinking by more than 9%.
At the White House, Trump told reporters the US economy would “boom” thanks to the minimum 10% tariff he plans to slap on imports in the hope of boosting federal revenues and bringing American manufacturing home.
The Republican president plans to hit products from dozens of other countries with far higher levies, including trade partners such as China and the European Union. China, which is facing an aggregate 54% tariff, and the EU, which faces duties of 20%, both vowed retaliation on Thursday.
Tariffs are taxes on goods imported from other countries, and Trump’s plan that he announced on Wednesday would hike such duties to some of the highest levels in more than 100 years.
The World Trade Organization said it was “deeply concerned”, estimating trade volumes could shrink as a result by 1% this year.
Traders expressed concern that the tariffs could stoke inflation and stall growth.
In early trading on Friday, Japan’s benchmark Nikkei 225 index fell by 1.8%, the Kospi in South Korea was around 1% lower and Australia’s ASX 200 dipped by 1.4%.
On Thursday, the S&P 500 – which tracks 500 of the biggest American firms – plunged 4.8%, shedding roughly $2tn in value.
The Dow Jones closed about 4% lower, while the Nasdaq tumbled roughly 6%. The US shares sell-off has been going on since mid-February amid trade war fears.
Earlier, the UK’s FTSE 100 share index dropped 1.5% and other European markets also fell, echoing declines from Japan to Hong Kong.
On Thursday at the White House, Trump doubled down on a high-stakes gambit aimed at reversing decades of US-led liberalisation that shaped the global trade order.
“I think it’s going very well,” he said. “It was an operation like when a patient gets operated on, and it’s a big thing. I said this would exactly be the way it is.”
He added: “The markets are going to boom. The stock is going to boom. The country is going to boom.”
Trump also said he was open to negotiating with trade partners on the tariffs “if somebody said we’re going to give you something that’s so phenomenal”.
On Thursday, Canada’s Prime Minister Mark Carney said that country would retaliate with a 25% levy on vehicles imported from the US.
Trump last month imposed tariffs of 25% on Canada and Mexico, though he did not announce any new duties on Wednesday against the North American trade partners.
Firms now face a choice of swallowing the tariff cost, working with partners to share that burden, or passing it on to consumers – and risking a drop in sales.
That could have a major impact as US consumer spending amounts to about 10% – 15% of the world economy, according to some estimates.
While stocks fell on Thursday, the price of gold, which is seen as a safer asset in times of turbulence, touched a record high of $3,167.57 an ounce at one point on Thursday, before falling back.
The dollar also weakened against many other currencies.
In Europe, the tariffs could drag down growth by nearly a percentage point, with a further hit if the bloc retaliates, according to analysts at Principal Asset Management.
In the US, a recession is likely to materialise without other changes, such as big tax cuts, which Trump has also promised, warned Seema Shah, chief global strategist at the firm.
She said Trump’s goals of boosting manufacturing would be a years-long process “if it happens at all”.
“In the meantime, the steep tariffs on imports are likely to be an immediate drag on the economy, with limited short-term benefit,” she said.
On Thursday, Stellantis, which makes Jeep, Fiat and other brands, said it was temporarily halting production at a factory in Toluca, Mexico and Windsor, Canada.
It said the move, a response to Trump’s 25% tax on car imports, would also lead to temporary layoffs of 900 people at five plants in the US that supply those factories.
On the stock market, Nike, which makes much of its sportswear in Asia, was among the hardest hit on the S&P, with shares down 14%.
Shares in Apple, which relies heavily on China and Taiwan, tumbled 9%.
Other retailers also fell, with Target down roughly 10%.
Motorbike maker Harley-Davidson – which was subject of retaliatory tariffs by the EU during Trump’s first term as president – fell 10%.
In Europe, shares in sportswear firm Adidas fell more than 10%, while stocks in rival Puma tumbled more than 9%.
Among luxury goods firms, jewellery maker Pandora fell more than 10%, and LVMH (Louis Vuitton Moet Hennessy) dropped more than 3% after tariffs were imposed on the European Union and Switzerland.
“You’re seeing retailers get destroyed right now because tariffs extended to countries we did not expect,” said Jay Woods, chief global strategy at Freedom Capital Markets, adding that he expected more turbulence ahead.
[BBC]
The long-anticipated Sampur solar energy project is finally set to break ground, marking a significant leap in Sri Lanka’s renewable energy ambitions. After years of delays and negotiations, the Power Purchase Agreement (PPA) for the Surya Danavi 120 MW Solar Farm in Santhosapuram, Trincomalee District, was officially signed on April 1st between the National Thermal Power Corporation of India (NTPC) and the Ceylon Electricity Board (CEB).
This initiative, spearheaded by Trincomalee Power Company Limited (TPCL), a 50:50 joint venture between NTPC and CEB, is expected to be a game-changer in the country’s energy landscape.
The project will be implemented in two phases. Phase 1 involves the installation of a 50 MW solar plant along with the construction of 37 km of 220 kV transmission lines connecting Sampur to Kappalthurai. In Phase 2, an additional 70 MW capacity will be added, complemented by 77 km of transmission lines extending from Kappalthurai to New Habarana.
President Anura Kumara Dissanayake played a crucial role in renegotiating the unit tariff to 5.97 US Cents, which includes a battery storage system to mitigate fluctuations in solar power generation.
According to Ministry of Energy Director General Eng. Pubudu Niroshan Hedigallage, this project is a testament to Sri Lanka’s commitment to renewable energy and energy security.
“For years, Sampur has been at the center of numerous energy debates. This project not only signifies the shift from fossil fuels to cleaner alternatives but also strengthens our grid resilience. The inclusion of battery storage makes this project particularly promising, said Hedigallage.
He further emphasized the importance of strategic partnerships in achieving energy sustainability. “Collaborations like the one between NTPC and CEB show the potential of cross-border energy projects. With India’s vast experience in solar energy, Sri Lanka can benefit immensely in terms of both technology transfer and cost efficiency.”
The Sampur region has long been embroiled in energy-related controversies. Previously earmarked for a coal power plant, the area saw fierce opposition from environmental activists and policy shifts that led to its cancellation. The transition from coal to solar in Sampur is seen as a redemption of sorts, aligning with global climate goals and Sri Lanka’s own commitment to increasing renewable energy in its power mix.
by Ifham Nizam
SriLankan Airlines is amplifying its commitment to nurturing Sri Lanka’s performing arts scene, leveraging classical Western music and homegrown talent to position the island as a hub for culturally discerning travelers.
The national carrier partnered with the Gustav Mahler Society of Colombo (GMSC) to support the 2025 Spring Concert at Colombo’s Lionel Wendt Theatre on March 29.
The event showcased Sri Lankan classical guitarist Jude Peiris alongside Japanese artists Hiroshi Kogure (violin) and Miyuki Funatsu (soprano), blending local and global artistry. This marks the airline’s sixth collaboration with GMSC, reinforcing its three-year role as the society’s Official Airline Partner.
Dimuthu Tennakoon, Head of Commercial at SriLankan Airlines, emphasised the strategic value of performing arts saying: “World-class cultural productions can transform Sri Lanka into a magnet for travelers seeking immersive experiences. By honing local talent, we unlock immense potential in the growing cultural tourism sector.”
Deepal Perera, Manager of Corporate Communications, highlighted the airline’s dual role: “We’re not just bridging geographies—we’re fostering global exchanges of music and tradition. Sri Lankan artists deserve platforms to shine internationally, and partnerships like this propel them forward.”
GMSC’s Music Director, Srimal Weerasinghe, praised the airline’s impact: “SriLankan Airlines has been instrumental in developing Western classical music here, sponsoring visiting professionals and helping build Sri Lanka’s first professional orchestra. Their support has elevated our global reputation.”
Beyond GMSC, SriLankan Airlines continues to partner with local arts groups and diplomatic missions, cementing its role as a cultural ambassador.
By Sanath Nanayakkare
We are working to stabilize and restructure an economy that was in disarray -President
Indian PM Modi arrives in Sri Lanka on a three day state visit
Special Train Services during Sinhala and Tamil New Year
-
News5 days agoBid to include genocide allegation against Sri Lanka in Canada’s school curriculum thwarted
-
Sports6 days agoSri Lanka’s eternal search for the elusive all-rounder
-
News7 days agoGnanasara Thera urged to reveal masterminds behind Easter Sunday terror attacks
-
Sports2 days agoTo play or not to play is Richmond’s decision
-
News6 days agoComBank crowned Global Finance Best SME Bank in Sri Lanka for 3rd successive year
-
Features6 days agoSanctions by The Unpunished
-
Features6 days agoMore parliamentary giants I was privileged to know
-
Latest News4 days agoIPL 2025: Rookies Ashwani and Rickelton lead Mumbai Indians to first win