Business
No second chance for Sri Lanka, says CB Governor
Turn this crisis into an opportunity – ADB
By Sanath Nanayakkare
Sri Lanka will have no second chance if this time it forgets why it took the Extended Fund Facility from the IMF and goes back to doing things that create fiscal imbalances, like in the past 16 programs with the IMF, Central Bank Governor Dr. Nandalal Weerasinghe warned on Tuesday.
The Governor conveyed this well-informed message to all stakeholders in Sri Lanka at the Asian Development Bank’s “Serendipity Knowledge Program” (SKOP) event, at the Cinnamon Grand Colombo. ADB’s SKOP also saw the launch of the Asian Development Outlook for 2023.
Inviting the CBSL Governor as keynote speaker of the event, Chen Chen, Country Director, Sri Lanka Resident mission ADB, urged Sri Lanka to turn the current economic crisis into an opportunity and go for deep, comprehensive reforms to address the long standing issues inflicting the economy, assuring that the ADB will remain steadfast in its support to Sri Lanka.
“In 2022, ADB provided emergency support to sustain Sri Lanka’s basic services and livelihood and to mitigate the impacts of the economic crisis on the people, particularly on the poor and vulnerable groups. We also supported the essential trade facilitating the importation of medicine and fertilizers. ADB worked very closely with the private sector, the civil society and development partners to maximize the impact of its emergency assistance. We will continue this collaborative approach in ADB’s future assistance to Sri Lanka. One year on, since the unprecedented crisis, we hope the worst is already behind us. However, there are lessons to learn from the crisis. Moving beyond the near term outlook, the main question remains on tackling the long standing challenges of Sri Lanka. Although the country has come a long way since last year, there is a long road ahead for economic recovery. I hope this discussion and insights into ADB’s outlook for 2023 will help understand and navigate the uncertainties that lie ahead.”
Later on Dr. Nandalal Weerasinghe in his keynote speech said:
“The root cause of the economic crisis was the long standing fiscal imbalance we have carried forward over a long period of time. There is empirical evidence to show that structural fiscal imbalances and the current account balance had a strong association to the economic crisis. Sri Lanka is a classic case of a twin-deficit country over several decades. As a result, we have been experiencing recurring Balance of Payment (BOP) issues. This is the reason why we have sought IMF bailout packages for 16 times and the latest rescue package is Sri Lanka’s 17th IMF programme. This time it is different from the past because we are not only in a BOP crisis, we are also in a sovereign debt crisis–both occurring together. That’s why it is much more difficult and complex this time. We had to continuously seek bailout packages because we have never been able to address the fiscal imbalance on a permanent basis. The key theme of any IMF programme was revenue-based fiscal consolidation and some structural reforms related to fiscal imbalances. We agreed with certain policy packages with the IMF, got some money and focused on stabilization in the beginning and we even completed two three programmes successfully; for example from 2009- 2012 after the end of the war.
“But soon after completing the programme or in between , after achieving stability, we had forgotten why we took those loans; why we agreed with those bailout packages and took two steps backward without going forward. It made us go back to the same crisis creating current account imbalances, depletion of our reserves, depreciating our currency and thereby resulting in a repetition of the vicious cycle. As a result, the country came to a point of unsustainable sovereign debt situation. If we had sought an IMF bailout when we saw the balance of payment crisis coming, we could have stabilized the economy without landing on an economic crisis. In the past, people didn’t feel the pain of the crisis as a lot of people hadn’t known there was a looming BOP crisis. If we had taken timely action, we could have at least stabilized the situation without addressing long term structural issues.
“The lesson learned from this was to seek assistance without being too late so that people wouldn’t have felt so much pain arising from a crisis that led to hyper-inflation. All what the Central Bank did was aimed at avoiding the collapse of the economy and preventing the social and political unrest. Certain analysts claim that the Central Bank contracted the economy with its tight monetary policy and other policies. My argument is; due to the BOP crisis, the economy was going to collapse and we were able to limit the contraction to 7.8% last year. This is not a happy situation, but still the contraction was minimized and hyper- inflation was reversed despite many had thought it would go spiral over 100%. It is the fiscal policy that has to implement cost reflective utility prices and address revenue and expenditure, and also address expansive monetary financing which was the root cause of the hyper-inflation experience d last year.”
“The key lesson I learned from this crisis was; for Sri Lanka, I don’t think we have a second chance this time. We can’t afford to what we did with our past IMF programmes- take one step forward and stabilize and then take two steps backward and cause fiscal imbalances. This time we have no chance. This is why we need strong commitment from all stakeholders of the country to take forward the 4-year IMF extended facility and implement the targets of the IMF which are also the benchmarks of the government.
“This time we need to be able to not just meet those targets, but outperform them and get out of the crisis for good.”
Business
Samata Kotasak, Samata Ekakayak forums draw large crowds in Anuradhapura & Jaffna
The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) have taken their ‘A Share for Everyone, A Unit for Everyone’ (Samata Kotasak, Samata Ekakayak) initiative to Anuradhapura and Jaffna through investor forums last week, as part of an ongoing islandwide effort to broaden investor participation. The forums were held on 10th September at the Golden Mango in Anuradhapura, and on 12th September at the Tilko Jaffna City Hotel. The forums attracted over 600 participants across both locations.
The “A Share for Everyone, A Unit for Everyone” concept, developed by the Chairman of the SEC, Sen. Prof. D.B.P.H. Dissabandara and launched in July of this year, aims to promote a shared commitment to creating wealth and value within a fair, efficient, orderly, and transparent capital market by ensuring broad and accessible participation for all.
As part of this initiative, the SEC and CSE will continue to host investor forums across the country to strengthen investor education and awareness while promoting broader participation in the capital market beyond the Western Province. By leveraging the CSE’s nationwide reach and the growing interest in equity investments, the programme will provide investors with greater access to Sri Lanka’s capital market through stockbroking firms and unit trust management companies.
“Traditionally, Sri Lankan investors have favoured conventional investment avenues, but it has yielded comparatively fewer returns than the capital market,” remarked Executive Vice President – Marketing, CSE, Niroshan Wijesundera, speaking on the Unit Trust and Stockbrokering firm outreach objectives of the broad-basing initiative.
“Over the medium to long term, capital markets have given higher returns. By setting aside small allocations to invest regularly through professionally managed vehicles such as unit trusts, first-time investors can participate in the capital market, receive higher returns in the medium-to-long-term, and gain experience and confidence. On the other hand, those with experience and knowledge can directly engage with the capital market through a stockbrokering firm. Traditional investments are liable to be taxed, whereas investments in the capital market are capital-gains tax free.”
Speaking on the favourable investment climate, he noted that the Sri Lankan capital market is at a relatively low Price-to-Earnings (P/E) ratio of 11.03x in a global context. “As covered in the presentations at the forums, the Sri Lankan capital market has demonstrated comparative resilience in the face of global market corrections, such as the Middle Eastern crisis. Sri Lanka has withstood bigger shocks, such as past crises, the war, COVID-19, the economic downturn, and the fuel crisis.’’
Business
“Pulle Madu” to medical school: record intake signals turning point for plantation sector welfare
Many generations ago, an estate child’s first years began in a cloth hammock strung up near the rows of tea bushes, so a mother could keep working within earshot of her infant. Later a corner in a line room was converted to establish Pulle Madu, where infants and toddlers were sheltered to ensure that plucking by their mothers was not disrupted.
Today, fully equipped Child Development Centers (CDC’s) complete with qualified and trained CDC officers have replaced the old Pulle Madu, to offer children the same level of education and exposure that any child in a city avails. These children receive custodial care, and child development support through these CDC’s, while Early Childhood Centers (ECD) lay greater emphasis on structured early learning through a play-based curriculum, while also providing dedicated spaces for working mothers to breastfeed.
These Centers are the result of the collaborative efforts of the Regional Plantation Companies (RPCs), the Government of Sri Lanka, and key plantation-sector trade unions, including the Planters’ Association of Ceylon. Together, these stakeholders form the tripartite body that established the Planters’ Human Development Trust (PHDT) in 1992, and have since contributed to significant development across the 22 RPCs.
The RPCs collectively spend nearly Rs. 720 million annually to maintain these CDC’s, reflecting the sector’s continued investment in childhood development and the wellbeing of plantation communities. This foundation supports their continued education and health development and, in the long term, helps them progress towards successfully completing the GCE O/L and A/L examinations.
To date, primary school enrolment among children from plantation communities has reached 100%, while approximately 2–3% of students go on to pursue higher education at local universities. Over the past two years, nearly 250 children from plantation families have gained admission to university, marking the highest number recorded by the sector to date. Among them is a young man from Strathspey Estate, now training to be a doctor at Eastern University. “Everything I have achieved is a direct result of my parents’ tireless hard work,” he said, thanking his teachers and the scholarship grant that carried him through school, whose identity is withheld in line with the programme’s standard practice for student privacy.
It also manifests powerfully in Roots to Wings, the university start-up scholarship initiative launched by PHDT in collaboration with the Planters’ Association and other industry partners. “Every year we saw bright students earn a place at university and then risk losing it, not for lack of ability, but because they couldn’t afford a laptop, a set of books, or even proper clothing to arrive on campus with dignity,” explained PHDT Director General Lal Perera. “To correct this situation, after careful study, we facilitated a scheme that bridges the most urgent gap. We cover the immediate start-up costs, while the Regional Plantation Companies, through their CEOs, ensure that the student is carried through to graduation. If a family loses estate housing when a parent retires, we don’t let that end a degree either. Students are granted extensions, and where needed, RPCs provide new housing, supported in part by Indian High Commission grants. Once a child has earned a place at university, we consider it our duty to make sure that place is never lost to circumstance.”
This scheme has become more than financial assistance; it is a lifeline of dignity, continuity, and hope. By addressing the hidden barriers that often derail promising futures, Roots to Wings ensures that talent from the plantation sector is not wasted but nurtured into leadership for tomorrow. It is a model of shared responsibility, where industry stakeholders collectively safeguard the aspirations of youth, transforming vulnerability into opportunity and circumstance into achievement.
The scheme costs an estimated LKR 10 to 15 million a year, funded by various industry stakeholders. The 2024 to 2025 cohort spans 35 Arts students, 22 in Commerce and Management, 13 in Drama and Theatre, 10 in Bio-systems, 7 in Music, 6 in ICT, four each in Medicine and Engineering, three in Engineering Technology, two in Law and 24 across other faculties, a spread once unimaginable on estates where literacy in PHDT’s target areas has climbed from 40 to 84 percent. Specialised degree pathways and vocational opportunities such as Uva Wellassa University’s Bachelor of Science Honours in Plantation Management, vocational training through the National Institute of Business Management and digital learning through the Open University of Sri Lanka has further empowered students with promising academic and career prospects.
The health figures tracked alongside the Department of Census and Statistics and the Family Health Bureau since 1992, shows infant mortality falling from 18.3 per 1,000 live births to 4.65, and under five mortality from 42.6 to 6.26. Maternal mortality, once as high as 150 per 100,000 live births, has fallen close to zero in most recent figures, and stillbirths have dropped from 40 per 1,000 deliveries to under five today. Nearly all deliveries now happen in health institutions, almost every mother receives antenatal care, and every child completes first year immunization, which are gains attributed to better roads, housing, welfare services and preventive healthcare across the estates.
Nutrition support has similarly evolved, with centers moving from contractor-supplied meal packets towards parent-prepared midday meals. A centrally managed kitchen model has also been piloted at Dessford Estate, with a second facility planned at Holyrood Estate. However, officials do acknowledge that nutrition among younger children remains the area needing the most continued investment.
The progress made in improving health outcomes, particularly in reducing infant mortality, is significant. This reflects the RPCs’ continued commitment to community development, which extends to supporting education through scholarship programmes. These initiatives, together with established healthcare and educational support systems, contribute to improving opportunities and outcomes for children and families across plantation communities.
Business
Ceylinco Life dominates NAFLIA 2026 winning 12 top honours, including 5 National Awards
Ceylinco Life has reaffirmed its standing as a powerhouse of sales excellence in Sri Lanka’s life insurance industry, securing an outstanding 12 awards at the 2026 edition of the National Forum for Life Insurance Advisors (NAFLIA), including five National Awards that recognised its professionals as the best in the country.
The awards event saw Ceylinco Life’s sales professionals excel at both the Large Company and National levels, with the company claiming top honours across the Advisor, Supervisor and Branch Manager categories in both levels, while also producing two winners in the Large Company level in the Fast Starter Advisor category.
In the Advisor category, A. P. S. Wijayakumar secured first place at National and Large Company Level, while A. I. P. Manjula was placed second in both levels, giving Ceylinco Life four awards across the two tiers of recognition in this category.
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