Business
JAAF denounces PUCSL-approved 66% electricity tariff hike
The Public Utilities Commission (PUCSL) granted approval to a 66% electricity tariff hike effective 15th February 2023, resulting in exponential increases in costs in the apparel industry, which in turn threatens the continuity of operations, competitiveness and sustainability of a USD 5.5 billion industry, which remains the backbone of Sri Lanka’s economy. The current increase is a further 31% with overall increase of 165% since June 2022. This translates to an increase in manufacturing costs of close to 5% just on electricity.
The Joint Apparel Association Forum (JAAF) is perplexed and surprised that the written and oral submissions presented by the industry on tariff hikes to the PUCSL public consultation have simply been overlooked. It discerns that the approved tariff hike was effected devoid of stakeholder consensus and done simply as a tick-box exercise to concede to legal processes.
The following are the industry-relevant cautions and proposals submitted by the Secretary General of JAAF Yohan Lawrence at the PUCSL public consultation:
Overestimation of demand by CEB – As highlighted by JAAF numerous times, Q4 of 2022 experienced a 15-20% decline in orders (reduction in demand) due to the continuing global recession. JAAF estimated this downturn of economic activity to continue into the 2H of 2023. With this abrupt fall in demand, the industry faced shorter working hours and decreased demand for electricity. PUCSL’s documentation too acknowledged that electricity generation in January 2022 was much higher than in January 2023. However, the then-proposed tariff increase was based on an increased electricity demand as estimated by the Ceylon Electricity Board (CEB), which was not quantified taking the January 2023 pattern into account.
JAAF raised caution stating that the overestimation of electricity demand will result in higher projected costs and requested the CEB and PUCSL to hold off on electricity tariff revisions until an accurate assessment of electricity demand was made. JAAF further requested the CEB to lower its own generation costs before tariff adjustments.
JAAF iterated that with the country’s single biggest industrial exporter facing a reduction in demand, an electricity tariff increase based on an unsubstantiated increased electricity demand makes limited sense.
The impact of increased tariffs on competition – It is vital that Sri Lanka apparel remains competitive with other apparel manufacturing nations and in the international market. With last year’s electricity tariff increases, Sri Lanka stood on par in US dollar terms with regional giants like India, Bangladesh, Vietnam, Indonesia and Thailand offering USD 9 to10 cents per kWh. Meanwhile, African countries including Benin and Togo which are aggressively pushing for foreign investments offer a much lower rate of USD 8 cents per kWh.
With the increases that have gone through, this will leave Sri Lanka with a tariff of around 12cts per kWh, which will undoubtedly make Sri Lanka uncompetitive and unattractive to investors.Impact of repetitive off-peak tariff increases on Sri Lanka apparel – As highlighted by JAAF during the previous tariff hike, off-peak tariff increases defeat the very purpose of having an off-peak tariff slab, which is to incentivize businesses to operate during off-peak hours.
The off-peak tariff was increased from LIKR 6.58 / kWh to LKR 15 in 2022. The new PUCSL document suggested an off-peak increase of LKR 34 / kWh from LKR 15. This denotes a 400% increase in less than 12 months. (JAAF)
JAAF highlighted that Sri Lanka needs to grow a dedicated textile sector, especially with the government investing heavily in the Eravur textile zone. Fabric mills must operate 24 hours a day to attract investors. Therefore a 400% increase in off-peak tariffs is counter-productive to the objective of growing a textile base in Sri Lanka. JAAF further stressed that this increase will discourage companies moving to off-peak operations creating an unnecessary incentive to sustain peak production and thereby increased electricity generation, which is in stark contrast to any basic economic rationale.
Renewable energy and rooftop solar- JAAF urged the CEB to urgently scale up the commissioning of renewable energy including rooftop solar, aligned with the government’s commitments to generate 70% of the country’s energy requirements from renewables.
JAAF emphasized that Sri Lanka needs a commercially viable tariff for Net Plus. The apparel industry has installations of about 200 MW of solar power. However, these companies have not been paid for the last 7 to 8 months. In the event CEB is unable to honour delayed and future payments, JAAF urged the existing companies to be permitted to move to Net Metering. JAAF illustrated that this will immediately eliminate a cash flow burden from the CEB, allowing the increase of the solar footprint, which will in turn reduce demand on the burdened national grid allowing the CEB to generate electricity at a lower cost.
Power wheeling – JAAF has been lobbying for power wheeling for an extended period of time. This is the single biggest catalyst in the move to renewable energy and will undoubtedly be a conduit for investment in the sector. Increased private investment in renewables will reduce the load on the CEB allowing the SOE to reduce its pricing given to the consumer.
JAAF urged the amendment of the CEB Act to be expedited to allow for power wheeling. Taking these facts into consideration, JAAF would like to express deep concern on the government’s decision to increase the industry electricity tariff rates by 30%. JAAF urges the government to consider facts and data when making policy decisions of this scale and nature. At a juncture where the apparel industry is confronting a decrease in demand, electricity tariff increases based on speculative increased demand is blatantly inessential and will only burden an already embattled industry that binds the country’s economy in these unprecedented times.
Business
Historic launch of CCWE Fashion Week & International Summit 2026
The Ceylon Chamber of Women Entrepreneurs (CCWE) officially announced the CCWE Fashion Week & International Summit 2026 at a press conference held in Colombo, unveiling a historic national initiative that will mark the first-ever fashion week in Sri Lanka and the South Asian region dedicated exclusively to women entrepreneurs.
Held under the theme “Threads of Inclusion Woven from Every Walk of Life,” the event is scheduled to take place from 16th to 20th July 2026 at Cinnamon Life, Colombo, positioning Sri Lanka at the forefront of inclusive and sustainable fashion while creating a powerful platform for economic and social transformation.
This landmark initiative goes beyond fashion to deliver meaningful value to society by empowering women entrepreneurs across diverse communities, industries, and regions. By bringing together designers, artisans, SMEs, policymakers, investors, and international stakeholders, the event aims to create new market opportunities, strengthen financial inclusion, and promote sustainable livelihoods. It will serve as a catalyst for economic growth by supporting women-led businesses, enhancing export potential, encouraging youth participation in creative industries, and fostering regional collaboration across South Asia.
Supported by a strong network of corporate partners, the initiative is led by HNB as the Title Sponsor, reflecting a collective commitment to empowering women economically and driving more inclusive national progress.
Speaking at the press conference, Dr. Ayanthi Gurusinghe, President of CCWE and Chairman of the Fashion Week, stated, “Today we are announcing more than an event—we are introducing a national movement that will transform the way we view women entrepreneurs in Sri Lanka. This platform is designed to open doors for women from every walk of life, enabling them to convert talent into enterprise, gain access to markets, and contribute meaningfully to the economy. Through this initiative, Sri Lanka has the opportunity to lead the region in building a future where inclusion meets opportunity and equality.”
HNB, MD/ CEO, Damith Pallewatte, added, “For over 135 years, HNB has stood as a partner in progress to all Sri Lankans, and supporting women entrepreneurs is central to how we continue that legacy. This initiative creates a platform where women can access markets, build sustainable businesses, and contribute meaningfully to national economic development.
When women are empowered with the right access and support, the impact extends to families, communities, and the broader economy. Our decision to serve as Title Sponsor is driven by our commitment to enabling that access and supporting pathways for long-term growth through financial inclusion and enterprise development.”
Extending regional support, Mrs. Premila Acharya, President of the South Asian Women Development Forum (SAWDF), shared her support online, “The CCWE Fashion Week & International Summit 2026 is a landmark initiative that reflects the strength and potential of women entrepreneurs across our region. It is inspiring to see Sri Lanka take the lead in creating a platform where inclusion, opportunity, and equality come together. SAWDF is proud to stand in partnership with CCWE in empowering women through collaboration and shared progress.”
Highlighting achievements The United Nations Economic and Social Commission for Asia and the Pacific Subregional Office for South and South-West (ESCAP-SSWA) as Knowledge Partner Ms. Mikiko Tanaka, Head and Director noted “ESCAP is pleased to serve as a knowledge partner for the CCWE Fashion Week & International Summit 2026. This initiative reflects our shared commitment to enhance women entrepreneurs’ access to markets, finance and digital networks. Connecting women-led businesses to regional networks can further unlock opportunities outside Sri Lanka. We commend CCWE’s leadership in creating an enabling environment for women from diverse backgrounds to innovate, participate and contribute to inclusive and sustainable economic development.”
Business
Sri Lanka’s capital market gains international recognition for GSS+ Bond issuances
The Colombo Stock Exchange (CSE) announces that Sri Lanka’s capital market has received international recognition for the quality and innovation of its Green, Social, Sustainability and Sustainability-Linked (GSS+) bond issuances at the 2026 Sustainable Debt Awards hosted by Environmental Finance. This milestone reflects the continued strengthening of Sri Lanka’s sustainable finance landscape and its growing alignment with international capital markets.
This achievement builds on a sustained collaboration with the EU-funded Green Recovery Facility, implemented by Expertise France, which has supported the development and international positioning of Sri Lanka’s GSS+ bond market. Advisory and coordination support has been provided in close collaboration with the CSE, alongside technical inputs from the contracted consultancy team Baastel led by Jason Taylor.
Since supporting the operationalisation of Sri Lanka’s Green Bond Framework in 2023, this engagement has evolved into a broader effort to develop the country’s GSS+ bond market. Through strengthened policy alignment, market development, and stakeholder engagement, this partnership has contributed to corporate GSS+ bond issuances aligned with international standards.
Collectively, recent GSS+ bond issuances in Sri Lanka have mobilised approximately LKR 82 billion (around EUR 216 million) across green, blue, social, sustainability, and sustainability-linked instruments, financing priority sectors such as renewable energy, energy efficiency, water and coastal resilience, and inclusive social infrastructure. These issuances have been oversubscribed, reflecting growing investor confidence in Sri Lanka’s sustainable finance framework.
This progress has been supported by the introduction of Sri Lanka’s GSS+ Bonds Regulatory Framework in 2025, aligned with international principles, further strengthening market credibility and investor confidence.
The awards recognise the following Sri Lankan institutions:
DFCC Bank – Award for Innovation: Use of Proceeds (Green Bond, APAC)
Bank of Ceylon – Award for Innovation: Sustainability Bond Structure (APAC)
Commercial Bank of Ceylon – Green Bond of the Year (Financial Institution, APAC)
Thimal Perera, Director/Chief Executive Officer, DFCC Bank PLC said, “This recognition reflects the progress Sri Lanka’s capital markets are making in aligning with international sustainable finance standards and strengthening credibility with global investors. We are honoured to receive recognition in the area of innovation in use of proceeds, which highlights the growing ability of Sri Lankan institutions to structure financing solutions with transparency, measurable impact, and long-term relevance. We remain grateful to the regulators, market participants, technical partners, and investors whose continued support is helping advance Sri Lanka’s sustainable finance ecosystem.”
“We are honoured to receive the Environmental Finance’s Sustainable Debt Award for Innovation – Sustainability Bond Structure (APAC) for the Bank of Ceylon’s inaugural LKR 20 billion Basel III compliant Tier 2 Sustainability Bond – the largest sustainability bond issuance in Sri Lanka and the first of its kind. This alignment addressed both BOC’s capital adequacy requirements and commitment to aligning sustainable finance with national development priorities while advancing resilient and inclusive economic growth in Sri Lanka. As the first Sri Lankan bank to secure this prestigious global award, we wish to thank the Colombo Stock Exchange for their proactive coordination and encouragement. We also extend our sincere appreciation to all stakeholders who partnered with us in this trailblazing endeavor.” said Mr. G. A. Jayashantha, Acting Senior Deputy General Manager/ Head of Global Markets, Bank of Ceylon.
Remarking upon the award Sanath Manatunge, Managing Director / Chief Executive Officer of Commercial Bank of Ceylon said “Winning the ‘Green Bond of the Year’ award is a significant milestone for Commercial Bank and a strong endorsement of our commitment to sustainable finance and responsible banking. As the largest private bank in Sri Lanka, we recognise our responsibility to support investments that drive long-term environmental and economic resilience, particularly in the renewable energy sector. This recognition reflects the Bank’s strategic focus on advancing sustainable financing solutions that contribute meaningfully to the country’s climate goals and broader sustainable development agenda.”
These recognitions are particularly significant in the context of Sri Lanka’s ongoing economic recovery and debt restructuring process. As the country works to restore macroeconomic stability and rebuild investor confidence, the ability of Sri Lankan financial institutions to successfully issue GSS+ bonds aligned with rigorous international standards sends a strong signal to global capital markets.
Business
Uber introduces Hybrid Subscriptions for Moto and Tuk Drivers
Uber, Sri Lanka’s most loved ridesharing platform, today announced the launch of Hybrid Subscriptions for Moto and Tuk drivers in the country. This includes a new ‘earn first, pay later’ model that gives drivers greater flexibility by allowing them to start earning on the platform without upfront payments. Drivers will continue to benefit from 0% commission on trips, allowing them to keep all of their earnings while paying a subscription fee separately.
With hybrid subscriptions, drivers can choose a model that works best for their driving patterns, making it easier for both full-time and part-time drivers to access trips and earn on Uber. The launch is aimed at improving the overall experience for drivers while continuing to offer reliable mobility for riders.
Flexibility and earning potential remain key priorities for drivers across Sri Lanka’s two- and three-wheeler ecosystem. The new model addresses this by giving drivers more control over how they engage with the platform and how they structure their earnings. By offering both time-based and earning-based subscription options, Uber provides drivers greater flexibility. While time-based subscriptions are ideal for full-time drivers, earning-based subscriptions work well for part-time drivers.
Commenting on the launch, Kaushalya Gunaratne, Country Manager – Mobility, Uber Sri Lanka, said, “”Drivers are at the heart of everything we do. We were among the first to introduce subscription models for Moto and Tuk drivers in Sri Lanka, and with hybrid subscriptions, we’re taking it further – giving drivers the benefits of zero commissions and the flexibility to choose what works best for them.”
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