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Lanka emerging as Asia’s next startup and innovation hub

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Sri Lanka’s rapidly growing startup ecosystem is drawing increasing regional and global attention, positioning the country as a rising innovation hub in Asia. With a strong ICT sector, high literacy rates, and a growing pool of skilled professionals, Sri Lanka is primed to become a hotbed for technology startups and product innovation.

Key highlight this year is the arrival of over 35 global investors attending the Venture Engine Finale, alongside the Disrupt Asia conference, creating an unprecedented opportunity for Sri Lankan startups to connect with leading venture capitalists and industry experts from APAC, MENA, Europe, and the United States.

Marquee investors and organizations participating include Turtle Ventures, The Brenta Group, Accelerating Asia Ventures, Antler Nordics, Startup Grind Qatar, Angels Nest Global, Quest Ventures, Citigroup, Triliv Holdings, Dallas Venture Capital (DVC), House of Sri Lanka, Beyond The Dutch, Plug and Play, Sophia Business Angels, Storyboard Multimedia, Striders Corporation, Japan, Sultan Ventures, TiE Dubai, Momo VC, BOV Capital, Aavishkaar Group, Turtle Ventures, Gojek, Rasmal Ventures, Intellecap, ISA, Millennium Asset Management Saint Clair Advisory & Capital and Sri Lankan Business Council – UAE,,

Entrepreneurship is seen as a catalyst for economic growth, job creation, and innovation. However, the biggest challenge facing Sri Lanka’s startup sector remains access to sufficient funding. Currently, the country attracts only about USD 2.5 million in venture capital annually significantly below regional hubs where investment reaches nearly 0.5% of GDP.

Industry experts suggest that Sri Lanka should aim to increase venture funding to at least 0.1% of GDP, approximately USD 80 million, to foster the growth of startups capable of producing globally competitive products and intellectual property. Efforts are underway to create a conducive policy environment, including the establishment of a government-backed Fund of Funds along with tax pass thogh structures to catalyze institutional investments into local venture funds and startups.

“These policy reforms, combined with private sector initiatives like Venture Engine, are driving momentum in Sri Lanka’s ecosystem,” said Prajeeth Balasubramanian, Co-Founder of BOV Capital and Founder of the Lankan Angel Network. “Venture Engine is pivotal in connecting startups with international investors, providing mentorship, and catalyzing capital flows.”

Successful alumni from Venture Engine include Roar, InsureMe, Stripes & Checks, Zig Zag and Mint Pay, demonstrating the program’s effectiveness in scaling startups and attracting investor interest.

With ongoing regulatory relaxation, improved tax frameworks, and increased investor participation, Sri Lanka is steadily unlocking the funding needed to transform its startup landscape. The presence of top-tier international investors at upcoming events underscores the global confidence in Sri Lanka’s potential as a startup destination.

As Sri Lanka charts its path to becoming Asia’s next innovation hub, sustained collaboration between government, investors, and ecosystem players will be vital to unlocking enduring economic and social benefits for the country.



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Engineers draw red line as CEBEU warns of union action over appointed date

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Engineers at the Ceylon Electricity Board have drawn a clear red line over the government’s plan to gazette the appointed date for restructuring the utility, warning that trade union action will follow if the move is pushed through without addressing their core demands, the Sunday Island learns.

The powerful Ceylon Electricity Board Engineers’ Union (CEBEU) says preparations are already under way for industrial action, most likely after the appointed date gazette is published, should the Minister proceed without resolving outstanding issues raised repeatedly by engineers.

“If the appointed date is gazetted without addressing our demands, we will have no option but to take trade union action,” a senior electrical engineer told The Island, stressing that the warning should be taken seriously.

CEBEU sources say the engineers’ demands are aimed at preventing a structural and financial crisis in the electricity sector, rather than blocking reform. They insist that unbundling the CEB without first putting in place firm safeguards would expose the sector to instability and consumers to higher costs.

The engineers’ key demands include: legally binding financial safeguards to ensure the proposed Electricity Generation Company is viable from inception; protection against the transfer of legacy liabilities, extraordinary costs, or inefficiencies to new entities or electricity consumers; enforceable accountability for management and policy decisions that inflate system costs; genuine, structured consultation with technical professionals before irreversible decisions are taken; and a halt to gazetting the appointed date until these safeguards are formally incorporated.

Engineers warn that rushing the appointed date would lock existing weaknesses into the new structure, making them harder—and more expensive—to fix later. “Once the appointed date is gazetted, there is no rewind button,” a senior engineer said. “If the foundation is flawed, the entire structure will suffer.”

Meanwhile, according to energy analyst, Dr. Vidhura Ralapanwe, electricity sector reforms must be grounded in technical and financial reality, not driven by administrative timelines.

He has cautioned that implementing structural changes without correcting underlying governance and cost issues risks destabilising the sector and undermining public confidence.

CEBEU officials reject claims that the union is resisting reform. They say engineers are being sidelined in decision-making while being held responsible for system performance. “We are accountable for keeping the system running, but our professional warnings are being ignored,” one engineer said. “That is not reform; it is reckless governance.”

With the Minister yet to gazette the appointed date, tensions within the power sector are rising sharply.

Engineers say the government now faces a stark choice: engage with professionals and fix the problems first—or brace for confrontation in a sector where disruption will have coutrywide consequences.

By Ifham Nizam ✍️

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Navam Perahera and sacred relics exhibition at Gangaramaya

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The annual Colombo Navam Maha Perahera, along with an exhibition of sacred relics brought from India, will be held at Gangaramaya Vihara in Hunupitiya, featuring a series of religious observances, according to Most Venerable Dr. Kirinde Assaji Thera.

Addressing a media briefing on Friday, the Venerable Thera said the Perahera will take place on January 31 and February 1, commencing at 7.30 p.m. and concluding before 10.00 p.m., after parading through the streets of Colombo.

He said specially decorated floats have been prepared to depict key historical events, enabling foreign visitors to better understand Sri Lanka’s cultural and religious heritage. The floats will portray significant moments such as the arrival of Arahat Mahinda, the bringing of the Sri Maha Bodhi, and the arrival of the Sacred Tooth Relic, and will be performed by leading local artistes.

The procession is expected to feature around 8,000 dancers and elephants, representing a wide range of traditional dance forms.

The exhibition of sacred relics from the Devnimodara Shrine in India will be held at Gangaramaya Vihara from February 4 to 11. The Venerable Thera urged devotees to visit the temple dressed in white and to refrain from bringing valuables or large items of luggage. He added that necessary facilities have been arranged to accommodate the large number of devotees expected.

Meanwhile, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi said a mobile application will be introduced to inform devotees of the approximate date and time allocated for venerating the Sarvagna Dhathu, in a bid to manage crowds more efficiently.

Senior DIG in charge of Colombo G. Nishantha de Zoysa said a special security plan has been implemented with the assistance of the tri-forces, in accordance with instructions from the Ministry of Public Security and the Inspector General of Police. He added that a comprehensive traffic management plan, including alternative routes, has been prepared, and that detailed police announcements will be issued shortly. The Senior DIG also advised the public not to carry large luggage, jewellery, mobile phones, or other valuables when visiting the exhibition.

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CID sleuths still plodding on with their probe into controversial Grade 6 English module

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The CID has so far recorded statements from 15 individuals in connection with the Grade 6 English module, police headquarters sources said yesterday.

The CID stated that several officials of the National Institute of Education (NIE), Maharagama, are among those from whom statements have been obtained.

On Thursday, the CID also recorded a statement from Venerable Ulapane Sumangala Thera.

Several parties, including the Secretary to the Ministry of Education, had previously lodged complaints with the CID regarding the inclusion of the name of an inappropriate website in the Grade 6 English module.

by Norman Palihawadane ✍️

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