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Pathfinder Foundation to develop a blueprint to double Sri Lanka’s growth rate
The Pathfinder Foundation has formed a Study Group of Experts to develop a blueprint and framework aimed at doubling Sri Lanka’s economic growth rate through accelerated economic integration and infrastructural connectivity with India. The framework document is expected to be formally launched in March 2024. Most economic forecasts place Sri Lanka on an average growth trajectory of 3% per annum for the next decade.
Such an anaemic growth rate will not help resolve Sri Lanka’s daunting social and economic challenges by any stretch of the imagination. Sri Lanka needs to think big and shift paradigms if the country is to find a way out of a seemingly hopeless predicament. As growth in the rest of the world including China continues to slowdown, India is expected to grow at above 6% per annum and will remain one of the best-performing economies in the world for the foreseeable future.While foreign investment into many regions is falling, investors are flocking to India due to its large market and emerging middle class.
Through an accelerated economic integration and physical connectivity strategy with India, Sri Lanka could take advantage of this momentum and easily double its economic growth to 6% per annum. India is already the largest source market for Sri Lankan tourism.
For example, at the end of the Second World War, the Netherlands seized the opportunity to develop its air, sea, rail, road, and energy sectors to become Europe’s distribution centre. Today, Rotterdam is the largest port in Europe, and Amsterdam is a principal global aviation hub. In fact, Singapore, too, used the Netherlands as a model for its own planning during its early stages of development. As windows of opportunity open and close quickly, it is essential for Sri Lanka to rapidly move towards becoming the principal gateway to South Asia, the Middle East, the Far East, and beyond before circumstances evolve and Sri Lanka is left behind.
Sri Lanka’s modern historical landscape has been littered with many missed opportunities. During the 1970s, in the heyday of US and European global expansion, Sri Lanka chose to nationalise Western multinationals operating in the country and as a result lost out on potential foreign investment opportunities to East Asia. Subsequently, President J.R. Jayewardene opened the economy and worked with the West and Japan to attract funding and investment for large-scale projects such as the Accelerated Mahaweli programme, port development, export-processing zones, and other infrastructure projects.
Unfortunately, Sri Lanka’s inability to grasp and manage the realpolitik of the Cold War period especially in terms of the Indian relationship, ultimately contributed to an intractable war that lasted nearly thirty years. In the 1980s when Japanese investors started to look abroad to relocate their industries for competitiveness, Sri Lanka was very high on the shortlist.
However, despite the excellent bilateral relationship between the two countries, due to persistent civil unrest during that period, in Sri Lanka, Japanese industries chose to relocate to Malaysia, Thailand, and other East Asian countries instead. In many ways, Sri Lanka also missed the opportunities presented during the early stages of China’s economic rise. Today, China is an important investment partner for Sri Lanka, although geopolitical realities will frame how this relationship can be managed.
India’s dramatic transformation into a fast-growing global economic powerhouse presents Sri Lanka with yet another chance to get the country onto a fast-economic growth trajectory that will integrate it with the global economy on a competitive footing. The Pathfinder Foundation Study Group blueprint and framework will conceptually present the key requirements for infrastructure connectivity between Sri Lanka and India including land, rail, ports/shipping, airports/airlines, electricity, energy/oil, telecommunications, and digital infrastructure. It will also identify other requirements that would facilitate speedy economic integration.
The Study Group will delineate an accelerated programme to achieve physical connectivity between India and Sri Lanka, while ensuring that Sri Lanka’s national security, territorial integrity, sovereignty, and unique cultural identity are safeguarded. It will also advocate an ambitious programme like the Accelerated Mahaweli programme that will seek to mobilise funding on a global level from bilateral, multilateral and international private-sector sources.
There is no doubt that this is a very auspicious time for such an initiative and international support and resources will be available, Sri Lanka must have the political will to seize this rare advantage that would put Sri Lanka on track. Besides the obvious medium and long-term advantages this program will have, there will also be many short-term spin-off benefits to the local economy as well. These will help create employment and opportunities in sectors such as construction.
Once this blueprint is complete, Pathfinder will present it for discussion in Sri Lanka and internationally. Earlier this year, the Pathfinder Foundation launched a report entitled ‘Medium and Long-term Strategy for Indo-Japanese Collaboration to Support the Economic Transformation of Sri Lanka’, which was launched in both Colombo and New Delhi.
News
CEB engineers raise alarm over power sector stability
A senior electrical engineers attached to the Ceylon Electricity Board (CEB) have warned that unresolved structural and policy issues within the power sector could threaten the long-term stability of the national grid, urging authorities to act swiftly to address mounting technical and administrative concerns.
Speaking on condition of anonymity, they said the electricity network was operating under increasing strain due to delayed infrastructure upgrades, financial constraints, and growing demand.
“The national grid is not something that can be managed casually. It requires systematic planning, preventive maintenance, and timely investment. If these are compromised, the risk to system stability increases,” the engineers said.
They noted that several transmission and substation modernisation projects were behind schedule, while ageing thermal plants continued to shoulder a significant portion of the country’s base load demand.
“Engineers are committed to ensuring an uninterrupted supply. But professional expertise must be respected in decision-making. Technical matters cannot be subjected to short-term political considerations,” the engineers added.
Meanwhile, the powerful Ceylon Electricity Board Engineers’ Union (CEBEU) echoed similar concerns, warning that failure to address long standing professional and structural issues could have serious consequences for the power sector.
In a statement, the CEBEU has said that engineers have repeatedly called for reforms that safeguard the integrity of the utility and ensure that operational decisions remain grounded in technical evaluation.
“The electricity sector is a critical national asset. Any attempt to weaken institutional safeguards or bypass professional consultation will directly impact service reliability and long-term sustainability,” the union said.
The CEBEU has stressed the importance of transparent engagement between policymakers and technical personnel, noting that morale among engineers could be affected if their concerns continue to go unheard.
Industry analysts point out that the power sector plays a central role in Sri Lanka’s economic recovery efforts, particularly as the country seeks to expand industrial activity and attract investment. Stability in electricity supply remains a key determinant of business confidence.
The senior engineer stressed d that the objective of raising concerns is not confrontation but preservation of the grid’s integrity.
“Our responsibility is to the public. Electricity powers hospitals, industries, and homes. Safeguarding the system is a national duty,” he said.
With tensions simmering within the sector, stakeholders say meaningful dialogue between authorities, engineers, and trade unions will be crucial in ensuring that Sri Lanka’s power infrastructure remains resilient in the face of growing challenges.
By Ifham Nizam
News
CB identifies 24 pyramid scams in Sri Lanka
The Central Bank (CBSL) yesterday announced that investigations had identified 24 companies and applications operating prohibited pyramid schemes.
In a public notice issued under Section 83C of the Banking Act, No. 30 of 1988 (as amended), the CBSL said the following entities had been “ascertained and determined as prohibited schemes”: Tiens Lanka Health Care (Pvt) Ltd, Best Life International (Pvt) Ltd, Mark–Wo International (Pvt) Ltd, V M L International (Pvt) Ltd, Global Lifestyle Lanka (Pvt) Ltd, Fast3Cycle International (Pvt) Ltd, Sport Chain App / Sport Chain ZS Society Sri Lanka, OnmaxDT, MTFE App / MTFE SL Group / MTFE Success Lanka / MTFE DSCC Group, Fastwin (Pvt) Ltd, Fruugo Online App / Fruugo Online (Pvt) Ltd, Ride to Three Freedom (Pvt) Ltd, Qnet / Questnet, Era Miracle (Pvt) Ltd and Genesis Business School, Ledger Block, Isimaga International (Pvt) Ltd, Beecoin App and Sunbird Foundation, Windex Trading, The Enrich Life (Pvt) Ltd, Smart Win Entrepreneur (Pvt) Ltd, Net Fore International (Pvt) Ltd / Netrrix, Pro Care (Pvt) Ltd and Shade of Procare (Pvt) Ltd, SGO / sgomine.com and I.C.A.N Advertising (Pvt) Ltd and its affiliates icanonlineadvertising.com, bannercuts.com, bannercuts.lk, bannercuts.net and bannercuts.org
The CBSL said pyramid schemes, also referred to as multi-level marketing or direct selling schemes in certain instances, operate as recruitment-based programmes in which members enlist others into an expanding “downline” structure resembling a chain letter.
Under such arrangements, a portion of the fees paid by new recruits is channelled upwards to earlier participants, known as the “upline”, who are fewer in number.
The Central Bank warned that such schemes are inherently unsustainable, with the vast majority of participants at the lower tiers eventually losing their investments, while only a small number of early entrants are able to recover or profit from the funds contributed by subsequent recruits. It noted that when a pyramid scheme collapses, up to 99 per cent of those in the lower levels risk losing their money.
News
Church urges patience, warns against interference with Easter attacks probe
Director of Communications for the Archdiocese of Colombo, Rev. Fr. Cyril Gamini Fernando, yesterday expressed confidence that ongoing investigations into the 2019 Easter Sunday terror attacks would yield meaningful results and urged the public and all stakeholders to exercise patience and allow the probe to proceed independently.
Addressing a media briefing in Colombo yesterday, Fr. Fernando called on all parties to refrain from interfering with the investigations, warning that any attempt to obstruct the process would amount to a grave injustice to the victims.
He said he believed there was credible evidence to warrant the arrest of military intelligence veteran Maj. Gen. (Retd.) Suresh Sallay.
Referring to the coordinated bombings on April 21, 2019, which targeted churches and hotels and claimed nearly 300 lives, Fr. Fernando described the attacks as a “barbaric” act and a “massacre” that killed worshippers attending Easter services as well as individuals from different religious and ethnic communities.
By Norman Palihawadane
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