Business
Only 0. 04% of SL’s land parcel allocated for Industrial Zones: Minister
‘Productivity of land utilized for agriculture and plantations very low’
by Sanath Nanayakkare
Industrial Zones that account for 30% of local GDP have received only 0.04 % of the country’s land parcel, while millions of hectares of land utilized by the traditional agriculture and plantation sectors account for only 8% of the GDP because the two industries are lagging behind in their value- addition processes, Minister of Plantation Industries and Minister of Industries Dr. Ramesh Pathirana said on Monday.
Pathirana made these remarks while presenting the keynote speech at Nebada Sadaharitha Estate in the Kalutara district, where the Sadaharitha Group, a leader in the Sri Lankan green commercial forestry sector, marked its 21st anniversary.
Speaking further the Minister said:
“Our plantations industry dates back to more than a century and our agriculture industry is even more ancient. Approximately 4 million of our people directly depend on agriculture. In the past 75 years, we have benefited from these two sectors. A good example for this is in 1952, Sri Lanka and China entered into a rubber-rice pact when the country had to face a shortage of rice and China wanted rubber from Sri Lanka. In 1952, Sri Lanka’s population was 6.3 million. Today the population has increased to about 22 million and enough rice is produced for the nation without an issue.
This is because of the substantial investments we have made in water reservoirs, irrigation systems, seeds distribution and fertilizer subsidies. Tea and rubber also get re-planting subsidies. Cinnamon growers get plants for free. However, the country’s agriculture sector accounts for only 8% of the GDP. So, although millions of hectares of the nation’s land are utilized by the agricultural and plantations industries, there is a clear lack of productivity generated by the nation’s land resource by the traditional agriculture sector. This difference becomes clear to us when we work with the agricultural sector and the industrial sector. There is as little as 0.04% of land allocated for industrial zones of the country and they account for 30% of the GDP.”
“During the recent economic crisis, we realized that although the agriculture industry is good and the plantations industry is also good, they are more prone to dependency and their export-oriented value addition processes are on a back-foot relative to other countries in the world.”
“Our commercial tea industry is as old as 150 years since James Taylor, the Scottish planter, who discovered Sri Lanka had great potential for tea. Ceylon tea brand still fetches the best price in the world vis a vis Kenya and India. But our value addition and brand building fronts are in a very backward position. Our value addition is 40% including the production of 5-kilo bags which is also considered as a value addition.
Traditional tea exporters are not willing to shift from their models. They have historically exported tea to Turkey, Iran, Iraq, Lybia, Syria etc. The trade volume accounts for USD 1.2 billion. We need to be thankful to them for their hard work. In terms of rubber, we have become a centre for producing rigid tyre which generates an income of USD 1 billion. But the productivity in our rubber plantations has declined as tappers tend to exit the industry because of weather conditions.
On the coconut front, there is an increasingly favourable situation for Sri Lanka because there is increasing global demand for coconut and allied products. In 2022, we were able to record an income of USD 836 million from coconut exports. I believe that we will be able to earn USD 2 billion from the coconut and allied product exports in 5 to 7 years. Last year, cinnamon industry earned us USD 300 million. But, with Sri Lanka receiving its first ever Geographical Indication (GI) certification for Ceylon Cinnamon, we shall be able to expand our cinnamon exports in the future.”
“In this context, we need to draw our attention towards other commercial crops which have a demand in the global market including the Agarwood cultivation which Sadaharitha has developed a notable footprint across Sri Lanka in cultivation and has also secured a place for their products in the export market. Further, we have instructed the EDB to promote our coffee exports as global coffee sales volume is as five times as tea. The Malaysian Ambassador in Sri Lanka recently drew my attention to commercial cultivation of Durian fruit and we are looking at the possibility of growing it in rubber plantations where rubber trees are sparse. Further, we are looking at the possibility of expanding our export of fresh fruits to the EU, Australia and New Zealand in addition to the Maldives and the Middle East. For this, we are now in the process of earning international certifications to enter those markets.”
Business
DIMO KNIGHTS 2026 Reinforces a Culture of Recognition and Growth
DIMO celebrated DIMO KNIGHTS 2026, recognizing employees whose exceptional dedication, leadership, innovation, and commitment continue to shape the organization’s success. More than an employee recognition event, DIMO KNIGHTS reflects DIMO’s unwavering commitment to cultivating a workplace where people are empowered to thrive, reinforcing the Employee Value Proposition of ‘Making Work Enjoyable and Rewarding’ while bringing its Corporate Purpose of Fuelling Dreams and Aspirations to life.
Held under the theme “Illuminating Leadership, Inspiring Achievement,” the event celebrated individuals who exemplify DIMO’s values and inspire excellence across the organization. By recognizing those who consistently go above and beyond, DIMO continues to foster a high-performance culture where people are empowered to innovate, lead, and create meaningful impact.
A highlight of the evening was the keynote address delivered by Mr. Ravi Kant, former Managing Director and Vice Chairman of Tata Motors India, who shared valuable insights on leadership, organizational transformation, and building resilient organizations capable of sustaining long-term success.
Commenting on the event, Ms. Dilrukshi Kurukulasuriya, Executive Director / Chief Human Resources Officer of DIMO, said: “Our Tribe is the driving force behind DIMO’s continued success. DIMO KNIGHTS is more than a celebration of outstanding performance; it is a reflection of the culture we strive to build every day. By recognizing and empowering our people, we reinforce our Employee Value Proposition of ‘Making Work Enjoyable and Rewarding’ while bringing our Corporate Purpose to life. When our people grow, innovate, and thrive, they create lasting value for our customers, partners, and the communities we serve.”
DIMO KNIGHTS reinforces the organization’s people-first philosophy by fostering a culture of appreciation, continuous learning, and purposeful leadership. The programme reflects DIMO’s conviction that when employees are empowered, recognized, and inspired to excel, they shape the future of the organization through innovation, collaboration, and sustained excellence, strengthening a high-performing culture that delivers lasting value, drives sustainable business success, and reinforces DIMO’s position as an employer of choice.
The evening recognized employees across a wide range of categories, celebrating outstanding performance, innovation, collaboration, customer focus, and leadership. The ceremony culminated with the presentation of the prestigious Innovator of the Year and Employee of the Year awards, with the Employee of the Year accolade presented to Mr. Chathura Gunasekera.
As DIMO continues to invest in developing exceptional talent, initiatives such as DIMO KNIGHTS reaffirm the organization’s belief that sustainable business success begins with its people. By creating an environment where individuals are recognized, empowered, and inspired to achieve their full potential, DIMO continues to cultivate a purpose-driven, high-performing workforce that is equipped to shape the future of the organization while delivering lasting value to all stakeholders.
Business
Sri Lanka’s lifestyle coffee culture boom and the two faces of its economy
By Sanath Nanayakkare
On Baseline Road in Colombo, Barista Coffee recently opened its 100th outlet. For a modern café culture spreading across shopping centers, office districts, and provincial towns, this milestone is a major commercial success. It shows a thriving urban service sector and a growing class of lifestyle consumers who use coffee shops as places to work, socialise, and meet.
This is a curious new picture emerging from Sri Lanka’s post-crisis economic recovery: the coffee cup is getting bigger, even as the household tea cup tells a very different story.
Yet, looking past the espresso machines, a different reality unfolds in the country’s kitchens.
International financial institutions note that while Sri Lanka’s macro-economy is recovering, household welfare and employment remain below pre-crisis levels. Poverty rates sit at roughly double what they were in 2019, and food prices doubled over a three-year span, forcing families to cut back on essentials.
This creates a striking local paradox, especially given Sri Lanka’s proud heritage as a global tea producer. While the world pays top dollar for Ceylon Tea, local market studies and industry reports have long pointed out an unfortunate disparity: many ordinary families find high-quality tea too expensive, often settling for lower-grade alternatives at home.
The growth of a 100-outlet coffee network does not mean prosperity has spread evenly across the island. Instead, it proves that there is a specific, well-resourced segment of consumers with the purchasing power to sustain a premium lifestyle economy, even as many other households carefully calculate the cost of everyday groceries.
Barista’s 100th store is not a bad-news story; it is a testament to acute entrepreneurial grit, shifting consumer behavior, and the vital revival of the nation’s urban service sectors. But it serves as an uncompromising reminder that macroeconomic stabilisation is not synonymous with household recovery.
As Colombo’s coffee culture looks toward its next hundred outlets, the true pulse of the nation’s economic health will not be measured by the espresso machines humming in sleek urban hubs, but by the quiet arithmetic happening in millions of kitchens beyond its doors – where the fundamental question remains whether a family can comfortably afford a better cup of Ceylon Tea.
Business
Aitken Spence Hotel Holdings Rs. 5 billion debenture issue oversubscribed on opening day
Aitken Spence Hotel Holdings PLC announced that its maiden listed, rated, unsecured, senior
redeemable debenture issue was oversubscribed on its opening day, 15th September 2026.
The Company sought to raise Rs. 3 billion through an initial issuance of 30 million debentures at Rs.
100 each, with an option to issue a further 20 million debentures in the event of oversubscription of the initial issue, increasing the total issue size to Rs. 5 billion.
The Company said it had received applications for more than 50 million debentures, the full amount on offer, prompting the issue to close at 4:30 p.m. on the opening day (15).
The basis of allotment will be announced to the Colombo Stock Exchange as per regulatory requirements in due course.
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