Business
PA raises alarm over government’s decision to import spices
Sri Lanka’s globally renowned spice industry, long celebrated for its authenticity, quality and heritage, is now confronting one of its most pressing challenges. The Planters’ Association of Ceylon (PA) has voiced grave concerns following the government’s decision to permit the importation of spices under a new regulatory framework that grants “approved enterprise” status to selected companies.
While the stated objective is to process these imported spices into value-added products such as oil extracts and oleoresins for re-export, industry stakeholders fear that this move could severely dilute the reputation of pure Ceylon spices, disrupt local markets and open the door to smuggling and adulteration of Sri Lanka’ famed spices.
The Association argues that this policy undermines decades of effort invested in positioning Sri Lankan spices as premium, high-quality produce in the international market. Without urgent action from policymakers, the decision could deal a severe blow to farmers, exporters and the island’s long-standing reputation as the home of world-class spices.
Safeguarding Local Farmers and Traditional Cultivation
Sri Lanka’s cinnamon, pepper, nutmeg and cloves are globally recognized for their distinct flavor and authenticity, commanding premium prices in international markets. However, the new import scheme threatens to disrupt this delicate ecosystem.
Imported spices, cultivated under different environmental and commercial conditions, benefit from cheaper production costs and wider economies of scale. Introducing these products into the Sri Lankan market, even under the guise of re-export, creates the risk of spillover into domestic supply chains. Local farmers would then face unfair competition as imported products enter the market at lower prices, dragging down demand for genuine Ceylon produce.
The PA noted that previously in 2016, large volumes of imported pepper allegedly found their way into Sri Lanka’s export streams, leading to allegations of smuggling and dilution of the country-of-origin certification. India, Sri Lanka’s largest export destination, responded by tightening restrictions, which severely impacted local producers. The PA warns that this cycle could repeat, leaving thousands of farmers vulnerable to price crashes and lost livelihoods.
Reputational Risks and Trade Relations
Beyond domestic concerns, Sri Lanka’s international standing as a spice-exporting nation hangs in the balance. The phrase “Pure Ceylon Spices” represents centuries of tradition, strict cultivation practices and high standard of quality. By permitting imports, the government risks blurring this distinction, potentially jeopardizing hard-earned trust in global markets.
Countries like India, which currently import significant volumes of Sri Lankan spices under preferential tariffs via the ISFTA and SAFTA agreements, are highly sensitive to irregularities. If Sri Lanka is perceived as re-exporting foreign-grown spices under its own origin certificate, it could trigger retaliatory measures, as seen in the pepper crisis of the past. Already, reports suggest that India has raised concerns over the recent approval of import licenses, with containers facing clearance delays at Indian ports.
Business
USD 57.4m power investment opens new route for SME energy savings
By Ifham Nizam
A USD 57.4 million investment package is set to reshape the economics of electricity for small and medium-sized businesses, while creating a stronger platform for private investment in rooftop solar and other distributed renewable-energy projects.
The financing package—comprising a USD 35 million concessional loan from the Asian Development Bank (ADB), a EUR 15.4 million grant from the European Union (EU), equivalent to USD 16.94 million, and a USD 5.5 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM)—will finance a five-year programme to modernise the electricity distribution system from 2026 to 2030.
For the business community, one of the most significant elements is the planned introduction of Virtual Net Metering (VNM), which will be implemented in the country for the first time.
The EU-funded component will support 25 MW of aggregated rooftop solar PV capacity, specifically aimed at helping reduce the electricity-bill burden of small and medium-scale entrepreneurs.
The move could open a new investment channel for SMEs that have traditionally faced difficulties in absorbing high energy costs and making the upfront investment required for renewable-energy systems.
Rather than viewing rooftop solar simply as a household energy solution, the programme positions distributed solar as an important business-cost management tool.
For SMEs, which operate with considerably tighter margins than many large corporates, electricity expenditure can have a direct impact on competitiveness, cash flow and the ability to expand operations.
By allowing electricity generated from qualifying rooftop solar installations to be applied through a virtual net-metering arrangement, the programme is expected to broaden the economic benefits of solar power beyond individual premises.
The financial significance of the scheme extends beyond the initial 25 MW.
By establishing the infrastructure and regulatory framework required to manage aggregated distributed generation, the project could help create greater investor confidence in the development of decentralised renewable-energy assets.
The investment therefore has the potential to leverage additional private capital into the renewable-energy sector rather than functioning solely as a government-funded infrastructure programme.
The financing package is particularly notable because a substantial portion comes in the form of grants and concessional funding, reducing the cost of financing technologies that would otherwise require significant upfront capital.
The ADB loan will support the wider modernisation programme, while the EU and Japanese grant components will help finance renewable-energy integration and technologies designed to strengthen the grid.
At EDL, the investment will upgrade the existing CEBAssist platform with Advanced Metering Infrastructure (AMI), a Distributed Energy Resource Management (DERM) system and distribution control centres supported by an Advanced Distribution Management System (ADMS).
These systems will give the utility real-time visibility of electricity consumption and distributed generation, allowing it to manage an increasingly decentralised power system more efficiently.
That digital infrastructure is critical to the business case for expanding rooftop solar.
As more SMEs and other consumers generate their own electricity, the distribution network needs to know where generation is taking place, how much electricity is entering the grid and how those flows are affecting local network conditions.
Business
Renault Experience Centre opens at Majestic City
Renault has taken another significant step in its return to the Sri Lankan market with the opening of the Renault Experience Centre at Majestic City, Colombo, offering customers an opportunity to discover the brand and experience its latest models.
The Centre was officially declared open by Jawahar Ganesh, Group Managing Director of Associated Motorways (Private) Limited, accompanied by Prasanna de Silva, Director – Sales, AMW. The occasion was attended by AMW management and staff, members of the media, customers, well-wishers and other invited guests.
Located at the lobby of Majestic City, the Centre features three Renault models being introduced to the Sri Lankan market – the Renault Kwid, Renault Kiger and Renault Triber. Visitors can explore the vehicles, learn about their features and specifications, and take advantage of test drives available at the location.
Adding to the convenience for customers, AMW has ample stocks of Renault vehicles available in Sri Lanka, allowing customers to take delivery of their chosen vehicle without having to wait for months for it to arrive. Subject to completion of the necessary documentation and registration, customers can look forward to driving away in their new Renault within as little as one day, making the purchase experience faster and more convenient.
Customers can also enjoy greater peace of mind with a three-year manufacturer warranty, supported by dedicated Renault aftersales facilities to provide professional service and support throughout their ownership journey.
Commenting on the opening, Jawahar Ganesh, Group Managing Director of AMW, said, “We are delighted to welcome Renault back to Sri Lanka and to open the Renault Experience Centre at Majestic City. Renault is a brand with an exceptional heritage, a strong global presence and a reputation for innovation and distinctive automotive design. Through AMW, we are bringing that heritage and experience closer to Sri Lankan customers”.
Business
Dialog and Indira Cancer Trust continue breast cancer awareness initiative through Yeheli.lk
Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, marked the beginning of Breast Cancer Awareness Month by illuminating its Corporate Head Office in pink, in partnership with the Indira Cancer Trust, to stand in solidarity with individuals and families affected by breast cancer and encourage greater awareness, regular screening and early detection.
Building on previous breast cancer awareness campaigns conducted through Dialog’s Yeheli.lk platform in collaboration with the Indira Cancer Trust, this year’s initiative will continue throughout October under the theme, ‘A Pledge from the Heart’. As part of the campaign, members of the public can visit yeheli.lk to register for a free monthly SMS reminder and take their pledge for early detection throughout Breast Cancer Awareness Month.
-
Features6 days agoThe first woman in the foreign service or Ceylon Overseas Service it was then called
-
News5 days agoGeneva takes up Sallay’s case and govt. ignores opportunity to answer accusations
-
Editorial7 days agoFuelling discontent and protest
-
Foreign News6 days agoTen injured after car crashes into rugby supporters in Australia
-
News6 days agoNearly 20 Iranian tankers stranded off Lanka amid US sanctions
-
Latest News6 days agoTharindu Rathnayake, bowlers secure Asian Games Bronze for Sri Lanka
-
Features5 days agoSri Lanka Cricket Bill: Governance reform is not yet a cricket strategy
-
Features4 days agoPreventing grievances from becoming communal
