Business
Motor trader faces mass exodus with latest tax increases – CMTA
The Ceylon Motor Traders Association expresses serious concerns for the viability of the Motor Industry in the face of the latest increases in taxes proposed by the government. The government imposed a complete import suspension on all types of vehicles (two wheelers, three wheelers, passenger cars & commercial vehicles) in March 2020 citing that it will be for a period of 06 months. But even after 31 months, the core products of the industry are still suspended and the government has not provided any type of relief to the industry to date. Further, due to limitations in establishing LC’s over the last few months, the import of genuine spare parts also reduced, which directly impacted the after sales business, the key revenue line left for the motor companies.
Prior to the import ban, the membership of CMTA employed over 30,000 individuals while over 6,300 island-wide SME’s were managed as dealers, which fuelled the rural economy with over Rs. 2 Billion as dealer incentives. The CMTA members paid over Rs.6 Billion for outsourced services such as security, cleaning, logistics, storage etc, and facilitated vehicle finances of over Rs124 Billion, which sustained many jobs in several trades including leasing and insurance. The excise duty contribution from the motor trade was Rs.130 billion in 2019, which alone accounted for 6.8% of government revenue.
Charaka Perera, Chairman of CMTA said “Due to the import suspension, the motor trade has been crippled and has lost over 10,000 jobs during the last two years. Further, over 1,500 dealers, which were SME’s based island-wide, have closed down which has a direct impact on the rural economy. Stemming from the decline in business, the income of the employees has drastically reduced due to the lack of sales commissions and performance incentives while most of the CMTA Member companies have not been able to provide reasonable increments or bonuses to compensate for the increase in cost of living. In such a backdrop, the increase in inflation to over 64% has made it unsustainable to retain staff. Employees are moving out of the industry as well as out of the country, as they do not see a future within the motor industry. They can use the skills and experience gained to get sales and technical jobs in other countries. This is creating a severe talent drain for CMTA member companies and their operations are being hampered as a result”.
While the motor industry is facing such hardships, the impact of the announcement of the increased taxes for corporates and individuals would be unbearable to the motor trade as well as many other trades. Such a move would ensure a mass exodus of trained experienced employees, on whom the companies have heavily invested to train and who are not easily replaceable.
As such, the CMTA is requesting the government to focus on multiple solutions such as reduction of government expenditure, increasing efficiency of SOEs, increasing the tax payer base and strengthening the tax collection systems, which would negate the requirement to drastically increase taxes for already tax paying corporates and salaried employees.
Founded in 1919, the Ceylon Motor Traders Association (CMTA) is the only trade body that represents global vehicle manufacturers through their locally appointed franchise holders (commonly called ‘Local agents/ Distributors’). CMTA is affiliated to the Ceylon Chamber of Commerce and is the most senior automotive trade association in the region. The members of the CMTA while bringing in international best practices in engineering and management, collectively employ and train thousands of Sri Lankan citizens, developing a talent pool that is trained and employable internationally.
Business
Sri Lanka betting its tourism future on cold, hard numbers
National Airport Exit Survey tells quite a story
Australia’s role here is strategic, not charitable
In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.
The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.
The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”
Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.
“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.
“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.
By Sanath Nanayakkare
Business
New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda
In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.
Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.
“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.
To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:
Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.
Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.
Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.
Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.
Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.
By Sanath Nanayakkare
Business
Brandix recognised as Green Brand of Year at SLIM Awards 2025
Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.
The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.
A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.
Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”
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