Business

Managing investor perception of business confidence seen as vital for Sri Lanka

Published

5 years ago

2021/09/29

Sahan Weerasooriya

Interview with Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director Aitken Spence PLC

By Lynn Ockersz

A priority for the Sri Lankan economy is to gain monetary, financial and fiscal stability and to gradually implement policy changes rather than to expect swift changes overnight, especially for key export industries that bring forex earnings into the country. Going forward, a concerted effort should be made to improve our ranking on the Ease of Doing Business and the Logistics Performance Index (LPI). What matters in the short term is to manage investor perception of business confidence, Deputy Chairman and Managing Director, Aitken Spence PLC Dr. Parakrama Dissanayake told The Island Financial Review in the course of an interview.

The Aitken Spence Group has performed remarkably well in the 1st Quarter of this year. What are the main keys to your success?

Aitken Spence PLC made an impressive comeback in the first quarter by recording a 145% increase in Profit Before Tax (PBT) and it was driven by the non-tourism companies of the Group that includes maritime and freight logistics, renewable energy, elevator agency, money transfer services, printing and packaging, plantations, apparel, insurance and maritime education and management. The diversification of business and our international presence in eight countries, has been a main contributing factor to achieve a compelling performance amidst many setbacks particularly impacting the tourism sector.

From the onset, we have demonstrated purposeful leadership through team effort, we have relied on our collective knowledge, innovation and insight which has helped us to navigate and will continue to rise above this tumultuous environment.

Going forward, what would you recommend as the main ways in which the Sri Lankan economy could be revived?

A priority for the Sri Lankan economy is to regain the monetary, financial, fiscal stability and gradually implementing policy changes than expecting swift changes overnight especially for key export industries that bring forex earnings into the country.

In addition, to expand our export products and services. When we look at the past two decades, we notice that Sri Lanka has a low growth of exports and lack of export-oriented investment, particularly FDI when compared to other countries in the region. We must reduce red-tape, build our infrastructure, innovativeness and make crucial technology transitions as these will determine our ability to compete with other countries in the region. The success of this will also depend on proper educational and training efforts.

A concerted effort should be made to improve our ranking on Ease of Doing Business and the Logistics Performance Index (LPI). What matters in the short term is to manage investor perception on business confidence.

From a private sectors perspective, Aitken Spence is embracing business transformation and upgrading skills of our employees to better equip them for the future.

What is the current status of your palm oil sector? Have the issues surrounding this sector been cleared up?

The issues remain unresolved. We are confident that the Government will find a pragmatic solution.

What are the keys to the success of your Strategic Investments sector?

The key success has been our strategy to cautiously diversify and balance investments to be less dependent on one or few businesses which has proven to be successful especially when facing the ongoing pandemic.

Our significant investments in renewable energy which were recent additions to the portfolio has been a key success to the Group’s strategic investments sector. We introduced Sri Lanka’s first waste to energy plant that was launched this year. This project came about with a sustainable solution to the waste management problem which is a complex and long-running issue in the Colombo city. Further investments were made this year to expand our portfolio in hydropower and in line with the collective efforts of the Government and the private sector to produce clean energy sustainably.

The printing arm of Aitken Spence was the first green printing facility in South Asia and continues to raise the benchmark in the industry.

Moreover, the plantations segment provided a substantial boost to the Group’s strategic investments sector by recording its highest ever profit from inception due to its balanced portfolio of diversification. The segment commenced commercial production of four varieties of berries under the brand “Berry Much”. Another first in Sri Lanka to cultivate and market the full range of berries. The plantations segment also entered into a shareholder agreement with SIM Leisure Group to develop and operate a world-class ESCAPE adventure theme park.

What would be your main priorities in your Tourism Sector once a degree of normality has been established in the country?

To improve resilience in Sri Lanka Tourism, priority should be given to urgent matters such as working towards a recovery plan and better coordinated efforts between all stakeholders to achieve this common goal. With this in mind, a main priority for us is to ensure that our employees across four countries in the Group’s tourism sector have completed the inoculation (both doses) and even those indirectly linked to the industry. This is critical and one of the ways to restore traveller confidence.

We are also revisiting our product offerings in line with the changing thinking pattern of international tourists centred on their safety and well-being. We will focus on a more differentiated, experiential product offering and direct engagement for customers as compared to the traditional accommodation offering. In this business transformation process, we are embracing technology that captures customer needs that would further elevate customer experience and support destination Sri Lanka.

With our hotels presence not just in Sri Lanka but in the Maldives, Oman and India; we will continue to strengthen our operations in those countries and look for greater opportunities. Our hotels in the Maldives did relatively well and has certainly cushioned the blow on the Group’s tourism sector.

We are also concerned with sustaining the trained human resources within the tourism industry as with the current situation many are moving out of the industry and new entrants to the industry have substantially dropped. When the situation has improved, our concerted efforts would be to attract people into the tourism industry.

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Business

ADB signals strategic shift amid global turbulence, eyes budget support for Sri Lanka

Published

1 hour ago

2026/05/5

Sahan Weerasooriya

ADB President Masato Kanda (L) speaks at a one- on-one in Samarkand, Uzbekistan, yesterday.

The Asian Development Bank (ADB) is actively engaging with Sri Lanka on a potential budget financing package, following recent discussions between ADB President Masato Kanda and President Anura Kumara Dissanayake.

Describing the request as “crucial,” Kanda said the proposal is now under internal consideration, with a broader framework being developed to ensure funds are directed toward priority sectors such as energy security, food security, and overall budgetary support. While no figures or timelines were disclosed, he emphasised the need for a carefully structured and mutually agreed resource allocation strategy

Sri Lanka is among several countries that have approached the ADB for similar assistance, reflecting mounting fiscal pressures across the region.

Speaking at one of the key meetings of the 59th Annual Meeting of the ADB in Samarkand, Kanda outlined a broader institutional shift in response to escalating global economic uncertainties, particularly those stemming from tensions linked to the Iran conflict.

“Asia and the Pacific can’t afford to retreat into isolation,” he said, reiterating a paradigm shift in how the ADB responds with greater speed, flexibility, and coordination.

Reaffirming the bank’s commitment to the region, Kanda stated, “We will step forward as one, while the ADB will be your steadfast anchor,” signaling a more proactive and unified approach to crisis response and economic stabilisation.

As part of this renewed strategy, the ADB has launched a $70 billion initiative aimed at strengthening regional connectivity through integrated power grids and digital infrastructure. The program is expected to play a transformative role in boosting cross-border energy cooperation and technological integration. By 2035, the bank aims to facilitate the integration of approximately 20 gigawatts of renewable energy capacity across national borders, supporting both energy transition goals and regional resilience.

Kanda also detailed a multi-tiered response framework to address immediate and long-term economic disruptions. In the short term, the ADB is leveraging its Trade and Supply Chain Finance Program to provide rapid liquidity support. This is complemented by fast-disbursing budget assistance designed to shield vulnerable populations from economic shocks.

Over the medium term, the bank plans to deploy resilience-building tools to help the regional economies stabilise and adapt to ongoing geopolitical and financial stresses.

The evolving strategy reflects a recognition that traditional development financing models may be insufficient in the face of increasingly complex and interconnected global crises. For countries like Sri Lanka, the outcome of these discussions could prove pivotal in facing current economic challenges while laying the groundwork for sustainable recovery.

As deliberations continue in Samarkand, the focus remains on translating high-level commitments into tangible support mechanisms tailored to the specific needs of ADB”s member countries.

By Sanath Nanayakkare in Samarkand, Uzbekistan

Business

Sri Lankan Food Festival 2026

Published

1 hour ago

2026/05/5

Sahan Weerasooriya

At the initiative of the Deputy High Commissioner of Sri Lanka, Dr. Ganesanathan Geathiswaran, the Deputy High Commission of Sri Lanka in Chennai successfully organized the first-ever “Sri Lanka Food Festival 2026” from 24th to 26th April at Green Meadows Resort, Chennai.

The Festival provided a unique platform to showcase the rich and diverse culinary heritage of Sri Lanka, offering guests an authentic experience of traditional Sri Lankan cuisine.

The event was organized in collaboration with esteemed partners, including the Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka; Sri Lanka Tourism Promotion Bureau; Cinnamon Grand Hotel, Colombo; Ministry of External Affairs of India; India Tourism, the Government of India, the Tourism Department of the Government of Tamil Nadu, Dwarka Productions Chennai, and Tarlton Tea.

The primary objective of the festival to further strengthen cultural ties between Sri Lanka and South India while promoting tourism, trade, and people-to-people connections through a shared appreciation of culinary heritage was successfully achieved.

The occasion was further honoured by the presence of Suresh Jain, District Governor of Rotary District 3234; Navin Gupta, President of the Rotary Club of Chennai Coastal; and the Chief Guest, Dr. Ishari K. Ganesh, Founder, Chairman and Chancellor of Vels University.

The event was also attended by Mr. Blaze Kannan of Dwarka Productions; Nazoomi Azhar, General Manager of Cinnamon Grand Hotel, Colombo; and Sri Lankan actor Kalana Gunasekara, whose presence added further distinction to the occasion.

The festival witnessed the participation of diplomatic Corps, South Indian actors and actresses, distinguished business leaders, members of travel and tourism associations, members of Rotary Clubs, Round Table members, and members of the media fraternity, making it a prestigious and diverse gathering.

Over 700 guests attended the festival across the three days, reflecting strong interest and engagement from the local community.

In addition, the Rotary Club of Chennai Coastal announced its initiative to donate an ambulance to Sri Lanka and to renovate 30 schools across the country, further strengthening goodwill and support in the healthcare and education sectors between the two regions.

Business

JAECOO shakes up UK auto market with record-breaking growth

Published

1 hour ago

2026/05/5

Sahan Weerasooriya

Since its UK debut in January 2025, JAECOO has recorded 28,232 new vehicle registrations within its first year, validated by the SMMT, making it the fastest-growing mainstream automotive brand Britain has seen in over a decade. Its flagship model, the JAECOO J7 PHEV, ranked among the most popular retail cars in the UK within its first year and emerged as the best-selling new car in Britain in March 2026.

These results have been further reinforced by a series of prestigious industry accolades:

Carwow Brand of the Year 2026

Leasing.com Overall Car of the Year

Recognised by Google as the most searched Chinese automotive brand in the UK in its Year in Search 2025

Supporting this growth is JAECOO’s parent company, Chery Group, ranked 233rd in the Fortune Global 500 (2025) and China’s No. 1 passenger vehicle exporter for 23 consecutive years.

This global momentum is beginning to translate into local demand, with growing interest in the JAECOO J7 PHEV across Sri Lanka. Designed to combine premium styling with advanced technology and everyday practicality, the model is well suited to both urban driving and more challenging terrain. It offers a combined range of up to 1,200 km, fast-charging capability (30% to 80% in 20 minutes), and acceleration from 0–100 km/h in under 8.5 seconds. Safety and reliability are reinforced through advanced driver-assistance features, a five-star Euro NCAP rating, and a seven-year warranty offered by Hayleys Mobility.