Business

NCC focusing on SDGs, inclusivity and equality

Published

4 years ago

2022/02/5

Speech by the President of National Chamber Nandika Buddhipala 63rd Annual General Meeting

I am honored to be elected, as the President of this prestigious Chamber for the second term, and I assure with confidence and pride that I will take forward the good work done by my predecessors to take the Chamber to greater heights.

I am taking over the Presidency of this Chamber at a very critical period for the world economy as well as the Sri Lanka economy. Sri Lanka economy is facing many internal and external challenges. I think it is pertinent to discuss certain post Pandemic global economic and geopolitical emerging issues which would have ramifications to developing world similar to us very briefly.

GOBAL ECONMOY AND LOCAL ECONOMY – Roadblocks and Sustainable Pursuits

It is expected that the global growth would reach 5.3 per cent in 2021, however, reducing the momentum 3.6 per cent in 2022. In 2020-22, it is estimated that the global economy faces a cumulative income loss of about USD 13 trillion. The expectation of inducement of demand stimulus and improving transformative public investment programmes in the medium and long run are restricted by increasing inflation expectation in developed and developing economies where US reaching inflation level of 7% after may be 40 years of history raising doubts whether such inflation may not be transitory in nature.

The international think tanks including United Nations recommend that conventional wisdom, which attempts to control inflation through wage reduction would not auger well for the sustainable development of the world economy at this juncture. Such agencies further warned that strategy adopted by many countries through slowing demand growth by putting stop to the stimulus packages would not stop inflation, since its source is imported inputs, including commodities.

The multilateral financial institutions have highlighted the fact that there is a compelling requirement to look at current issues in a different angle where simple market operations proclaimed by the conventional wisdom may not provide solutions to such issues; hence, need to embark on big spending programmes, initiatives to tax the rich and curtail the power of monopolies, recognition of the role of targeted capital controls, an endorsement of a strongly interventionist policy agenda to take care of green investment push.

The developed countries have been able to take care of such aspects through increase of financing due to their privileged status of issuers of international-reserve and trade currencies whereas developing countries are not in a position to adopt such strategies continuously without having complicated economic impacts. Therefore, developing countries are encountered with more immediate and serious challenges where their restrictive fiscal space, ever increasing debt burden and failure to implement sustainable vaccination programme for Covid19 having serious divergence and enlarging difference with their developed counterparts.

UNCTAD (United Nations Conference on Trade and Development) in their recent publication, Trade and Development Report 2021, critically examined current challenges encountered by developing countries. They are of the view that building protection against the vagaries of global finance is critical for developing countries and it is required to start with a proper evaluation of sovereign and private debt burdens and repayment profiles, which affect development strategies but also crisis response. Even though they recognize that debt re-profiling and relief, including debt cancellation, are necessary, they further emphasized that the multilateral relief provided by IMF through cancellation of debt service obligations and the expansion of SDR allocations between April 2020 to October 2021 has been insufficient and only a symbolic measure.

UNTACD further commented that developed countries having similar debt ratios to developing countries also have been able to weather through issues and recorded positive economic growth thanks to their ability to issue reserve currencies.

Globally, several issues continue to gather growing priority: the focus of the G20 is on the importance of initiatives such as, inclusive collaboration, global health, digital transformation and sustainable energy. The focus of the UN and its sustainable development goals remains on alleviating poverty, which requires strong radical focus on improving health and education sectors, on reducing inequalities, and in putting into action measures and solutions to tackle climate change, to protect our planet’s natural resources and biodiversity.

However, businesses are not only responsible for creating economical value for stakeholders, but are increasingly expected to adapt to these global demands and adopt inclusive, equitable and collaborative efforts in creating sustainable growth for people and the planet.

For Sri Lanka, there are several major roadblocks that need to be dealt with before we persistently contribute to these global agendas. The nation was gutted by safety and health concerns, however, has been able to manage rapid vaccination program successfully, slowdown of commercial activities and tourism due to the pandemic; in addition to these, the country’s debt vulnerabilities and dwindling Forex reserves made a deepening chasm in economic progress and social development. Nevertheless, the country is gradually dealing with each challenge, pressing on despite impediments.

As depicted in The Vision of National Chamber, to be the leading source of services and assistance to businesses countrywide for promotion of domestic and foreign trade with special emphasis on the development of Micro, Small and Medium Enterprises. We have carried out many activities as I will discuss.

PROMOTION OF INTERNATIONAL TRADE AND INVESTMENTS

International connectivity

The National chamber strongly believes in creating connectivity between local entrepreneurs and international markets where we need to find national and international market opportunities for MSMEs in the country. We understood the importance of conducting virtual B2B meetings with the support of our diplomatic services and foreign ministry together with our linkages with other Chambers throughout the world in the absence of available opportunities in exchanging trade delegations physically due to prevailed Pandemic situation during last year.

We have already concluded several B2B virtual Business Forums with Turkey including Adana Chamber of Commerce and Adana Chamber of Industries with the participation of more than 60 companies from both sides. We have further signed MOUs with other regional chambers in Turkey such as Sinop Chamber of Commerce, Aegean Chamber of Commerce and Erzurum Chamber of Commerce and Industries as well.

We have signed MoU with the Oman Chamber of Commerce and Industries and conducted a business forum with the participation of government authorities from both sides and a B2B meeting virtually, bringing in more than 50 business companies together.

Chamber has been able to conduct a Business Forum with Japan with the support of Sri Lankan Embassy in Japan, Japanese Embassy in Colombo, and the Sri Lanka Business Council of Japan. More than 60 Sri Lankan companies were connected for the business forum.

We further conducted a virtual Business forum and B2B meeting with Kuwait Chamber of Commerce and Industry with the participation of BOI, EDB Sri Lanka and their counterparts in Kuwait. More than 40 business companies participated for the virtual B2B exercise.

Even in the midst of Pandemic threats, Chamber has been able to welcome 18 member south Indian power-loom sector business delegation visited the chamber who are interested in investing in Sri Lanka and managed to conduct physical meetings with delegation from Hungary with 14 Hungarian companies connecting over 45 Sri Lankan companies with them on B2B physical interaction in January 2022.

Chamber signed a MoU with Union of Asian Chambers (UAC) of the Confederation of Nepalese Industries (CNI) in October 2021.

We were able extend our cooperation for the virtual Bangladesh Trade and Investment Summit took place in October last year in the strength of our existing MoU with Dhaka Chamber of Commerce and Industry.

Support Extended by Sri Lankan Missions overseas

We are happy to place on record that the supports extended by Sri Lankan ambassadors in other countries are commendable. We appreciate support extended by our ambassadors and commercial officers in Turkey, Japan, Oman, Kuwait, UK USA, Russia and Nepal. We also would like mention the enthusiasm shown by our own business community in these activities were overwhelming even during the pandemic period.

Support Extended by the Government authorities

It is noteworthy that all the activities carried out by the National Chamber were well supported by government entities such as EDB, BOI, Colombo Port City, Department of Commerce, Foreign Ministry, Ministry of Industries and National Enterprise Development Authority (NEDA) etc.

Commercial Officers posted to our foreign missions out of Sri Lanka

As a part of regular activity of hosting commercial officers posted to our foreign missions out of Sri Lanka, officers assigned to Bangladesh, Belgium, France/Paris, India/New Delhi, Malaysia/Kuala Lumpur, Pakistan/Karachi, Singapore, Sweden/Stockholm, Thailand/Bangkok, USA/Los Angeles, USA/Washington DC were invited for an online meeting which was open to business community both corporate sector and regional MSMEs with an objective to support much needed exports and FDI for the economy.

REGIONAL INTEGRATION AND SME DEVELOPMENT

Western Province Entrepreneur Awards

Chamber together with NEDA (National Enterprise Development Authority) hosted the annual “Western Province Entrepreneur Awards” designed for Micro, Small, Medium and Large sector entrepreneurs in the Western Province last year. We believe that the Award Ceremony encourages entrepreneurs to develop their business processes and functional areas of business, taking into consideration the behavior of those that have succeeded. It is noteworthy that presence of women entrepreneurs has gone up significantly in the recent past where 17 women entrepreneurs managed to secure awards out of 24 awards.

Meeting District chambers and Provincial Chambers

We always wanted to have very close interaction with all the district and provincial chambers in Sri Lanka in our efforts towards the SME and regional development of the country. While we are integrating them in our development activities, I have started personally visiting them where I have already met, Lanka Business Ring (LBR) in Kandy, Jaffna Chamber of Commerce and Chamber of Commerce and Industries of Yalapanam last year and Galle District Chamber of Commerce and Industries, Matara District Commerce and Industry and Hambantota District Chamber of Commerce during January this year. I am planning to visit rest of the district and provincial chambers in the country in the near future.

Partnering with CA Sri Lanka SME task force

National Chamber is proud to be a partner with the CA Sri Lanka SME Task Force, with the objective of securing professional Accountants to mentor Micro and SME businesses throughout the island and Chamber was able to partner with CA SME Taskforce launch of mentoring programme in Jaffna during November 2021 when easing off of pandemic conditions allowed to conduct such a launch physically.

To be continued

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Business

Arvind Subramanian: Why hasn’t Sri Lanka’s democracy acted as a hedge against economic chaos?

Published

13 hours ago

2026/01/22

Sahan Weerasooriya

Dr. Arvind Subramanian

In a sobering and intellectually provocative lecture delivered yesterday at the Central Bank of Sri Lanka, Dr. Arvind Subramanian, former Chief Economic Advisor to the Government of India, posed a “haunting” question to the nation’s policymakers: Why has one of the world’s oldest democracies outside the West failed to leverage its political system to ensure economic stability?

Titled ‘Reviving Growth While Maintaining Stability,’ the lecture moved beyond technical prescriptions. Dr. Subramanian, now a Senior Fellow at the Peterson Institute for International Economics, admitted that his experience with the complexities of the Indian economy had made him “humble and somber,” leading him to focus on the broader socio-political structures that dictate a nation’s fate.

Dr. Subramanian argued that in India, democracy acted as a vital pressure valve that prevented both extreme political violence and economic chaos. He noted that while the process of nation-building is historically violent – citing the West’s decimation of populations and China’s estimated 40–75 million deaths between 1950 and 1976 – India managed to maintain a relatively low degree of mass violence.

“Democracy had a key role to play in that,” he asserted. “It is one of India’s major achievements.”

The speaker extended this logic to the economic sphere, suggesting that Indian democracy created a “societal demand” for low inflation.

In India, he noted, there is a pervasive political belief that if inflation crosses the 5 percent threshold, the government is likely to lose the next election. This political accountability forced the Central Bank and the State to maintain macro-stability.

The crux of Dr. Subramanian’s address was the “intellectual puzzle” of why Sri Lanka, which received universal franchise well before India, did not experience the same stabilising effects of democracy.

He presented two charts that he described as “haunting.” The first revealed that Sri Lanka has spent 60 percent of its time under IMF programmes, indicating a state of “perennial macro-economic stress.” In contrast, India has not sought an IMF programme in the 35 years following its 1991 reforms.

“Why does Indian society demand low inflation and macro-stability, while the same doesn’t happen in Sri Lanka?” he asked. Despite its long democratic tradition, Sri Lanka has consistently seen higher inflation and greater financial instability than its neighbour.

Dr. Subramanian also highlighted a stark difference in how both nations treat foreign capital. Pointing to data on external debt stock as a share of Gross National Income (GNI), he illustrated that Sri Lanka has been consistently and significantly more reliant on foreign capital than India or China.

While some argue that Sri Lanka’s small size necessitates a reliance on foreign capital, Dr. Subramanian remained unconvinced, noting that India also suffered from low domestic savings for decades but chose a more cautious path.

“India has been much more cautious in opening up to foreign capital,” he explained. While foreign capital can drive growth, it brings the “downside of risk and volatility” as capital flows in and out – a reality that came to haunt Sri Lanka in recent years through its high exposure to foreign currency-denominated debt.

The lecture concluded not with a list of “1, 2, 3 points” for recovery as the wider audience had expected, but with a challenge to the Sri Lankan intelligentsia. If democracy is meant to be a safeguard against political and economic disorder, the breakdown of that mechanism in Sri Lanka requires deep introspection.

“Different societies differ,” Dr. Subramanian concluded. “But if democracy had a key role in avoiding volatility in India, why shouldn’t it have been so in such an old democracy as Sri Lanka? It is worth pondering over,” he said.

By Sanath Nanayakkare

Business

HSBC kicks off ‘Clean Waterways’

Published

13 hours ago

2026/01/22

Sahan Weerasooriya

HSBC will launch ‘Clean Waterways’ in partnership with the Beira Lake Restoration Task Force that was convened by the Governor of the Western Province to restore Beira Lake. HSBC in partnership with Clean Ocean Force will build and operate two solar powered, zero emission, waterway cleaning boats, which are the first of their kind in Sri Lanka. They will be used extensively in support of restoring the Beira Lake ecosystem and its surrounding environment.

Once a picturesque centerpiece in Colombo, Biera Lake is now suffering from significant pollution. Urbanization and lack of effective waste management practices have led to large volumes of plastic and floating organic debris, untreated sewage and industrial effluents contaminating the water. Resultant algal blooms, unchecked hyacinth growth and water stagnation further give the lake a detrimental odour and appearance. The pollution has degraded water quality, harmed aquatic life posing health risks to residents living in proximity by attracting disease-carrying fauna.

The Biera Lake Restoration Task Force was convened by the Governor of the Western Province with the purpose of delivering cleaner waterways in the urban environment. It is vital to educate and support change for communities that reside near the Beira Lake. To achieve this, a dedicated community outreach programme will reach over 5000 wider residents through awareness building and education which is anticipated to reduce ‘waste at source’.

Mark Surgenor, Chief Executive Officer, HSBC Sri Lanka stated “With over 130 years presence in Sri Lanka, HSBC understands the importance of Beira Lake to Colombo’s urban environment. Supporting cleaner waterways is a vital step towards restoration of that environment. Through this first ever public-private partnership, multiple stakeholders are coming together to work towards restoring this iconic lake. We have committed to support the Beira Lake Restoration Task force, not just with the much-needed funding, but also bringing best practices through our experience with similar projects in other markets that we operate in. The community outreach programme planned alongside the project is a critical step towards making this impact sustainable. HSBC has always been at the forefront of innovation in Sri Lanka and we look forward to continuing that for our next 130 years here”

Business

CORALL Conservation Trust Fund – a historic first for SL

Published

14 hours ago

2026/01/22

Sahan Weerasooriya

From left to right – Nigel Bartholomeusz (Director – EFL), Chanaka Wickramasuriya (Trustee), Palitha Gamage (Trustee), Dr Shamen Vidanage (Country Representative – IUCN), Ms. Deshini Abeyewardena (Chairperson – EFL), Nishad Wijetunga (Trustee), Dr. (Ms.) Nishanthi Perera (Trustee), Prof. (Ms.) Sevvandi Jayakody (Trustee), and Nalin Karunatileka (Trustee)

Sri Lanka has moved to strengthen the financial backbone of its marine conservation efforts with the establishment of the country’s first CORALL Conservation Trust Fund, a landmark initiative that positions coral reef protection firmly within the framework of sustainable finance and long-term economic value creation.

The Trust Deed establishing the CORALL (Conservation of Reefs for All Lives and Livelihoods) Conservation Trust Fund was signed on December 31, 2025, by Environment Foundation (Guarantee) Limited (EFL) as Settlor together with the inaugural Board of Trustees. The Fund is designed to support the conservation of Pigeon Island National Park, Bar Reef Marine Sanctuary and Kayankerni Marine Sanctuary, along with their associated seascapes—areas that are central not only to marine biodiversity but also to fisheries, tourism and coastal protection.

From a business and policy perspective, the Trust Fund represents a decisive shift away from short-term, donor-driven conservation projects towards a structured and enduring financing mechanism. It is a key component of the Sri Lanka Coral Reef Initiative (SLCRI), a six-year national programme funded by the Global Fund for Coral Reefs and implemented by the International Union for Conservation of Nature (IUCN), but critically, the Trust itself is structured to continue well beyond the project’s lifespan, offering a permanent vehicle for mobilising state, private sector and international sustainability-linked funding.

Coral reefs within the three targeted seascapes have been increasingly degraded by destructive fishing methods such as blast fishing, overfishing, coastal pollution, unregulated tourism and unplanned coastal development. These pressures carry significant economic consequences, undermining fish stocks, tourism revenues and the natural coastal protection that reefs provide. Project partners note that a major driver of this degradation is the limited understanding among communities and institutions of the true economic value of coral reefs as natural capital that underpins livelihoods and resilience.

EFL, as an implementing partner to IUCN, played a central role in shaping the Trust’s institutional and financial architecture. It carried out a comprehensive legal, policy and institutional review, provided recommendations on the structure of Conservation Trust Funds, and drafted both the Trust Deed and an operational manual embedding governance, accountability and transparency safeguards. These features are seen as critical in building investor and donor confidence, particularly at a time when environmental, social and governance (ESG) considerations are increasingly influencing capital flows.

The Board of Trustees, selected by IUCN and the SLCRI National Steering Committee following a public call for applications, brings together expertise from investment banking, commercial banking and marine science. The Trustees—Palitha Gamage, Prof. (Ms.) Sevvandi Jayakody, Nalin Karunatileka, Dr. (Ms.) Nishanthi Perera, Chanaka Wickramasuriya and Nishad Wijetunga—will oversee grant funding for conservation and restoration proposals submitted by Special Management Area Coordinating Committees, while also ensuring robust monitoring and evaluation to safeguard long-term financial and ecological sustainability.

“This marks a significant step in sustainable financing to conserve coral reef ecosystems which are critical for marine biodiversity conservation, coastal protection, climate resilience, and the livelihoods of coastal communities, said Dr. Shamen Widanage, Country Representative of IUCN Sri Lanka, highlighting the wider economic and social returns expected from the initiative.

EFL chairperson Deshini Abeyewardena said the Trust Fund reflects a broader shift towards innovative financing models for environmental protection.

“EFL is honoured to have been selected by IUCN to implement this landmark initiative. The establishment of the CORALL Conservation Trust Fund reflects EFL’s long-standing commitment to advancing environmental justice through strong governance, legal safeguards and innovative financing mechanisms. As Sri Lanka faces increasing pressures on its marine ecosystems, this Trust provides a credible and transparent platform to secure sustained investment for coral reef conservation, she said.

By Ifham Nizam