Business

Policy certainty: The real investment test for Sri Lanka in 2026

Published

1 month ago

2026/03/23

This rendering illustrates the Ambuluwawa cable-car project’s final appearance if it were completed

When Arjuna Herath assumed duties as Chairman of the Board of Investment of Sri Lanka, he quite correctly sent a clear message: Sri Lanka intends to position itself as an investor-friendly destination. The message was reinforced during a visit by a high-level delegation from the USSri Lanka Business Council, where officials spoke of renewed confidence in the country’s economic trajectory.

The optimism is not without foundation. After years of crisis, Sri Lanka has begun to stabilize. Foreign direct investment crossed the psychological threshold of about US$1 billion in 2025, exports climbed to more than US$17 billion, and tourist arrivals reached record levels. These numbers suggest that international capital is once again willing to take a second look at the island. Yet statistics alone do not tell the whole story.

The deeper question facing policymakers in 2026 is whether that early interest can be sustained. For investors, confidence is rarely built on incentives alone; it rests on the expectation that rules will remain consistent once a project begins. In other words, predictability matters more than promises.

That tension between optimism and uncertainty is now emerging as the central theme in Sri Lanka’s investment narrative.

On the one hand, authorities are signaling reform and openness. On the other, several recent developments have reminded investors that implementation can still be uneven. One widely discussed case involved the proposed Ambuluwawa cable-car project in the hill country, where a cross-border investor withdrew after reportedly spending about US$3.5 million. The developer, Amber Adventures (Pvt) Ltd, had planned a US$12.75 million tourism venture but later said the project was halted despite earlier technical clearances from multiple agencies.

Regardless of where the merits of the dispute lie, the episode left a familiar impression in investment circles: timelines and approvals can appear uncertain once projects move from paper to construction.

A separate case in the renewable-energy sector has generated similar concerns. Policy resets and prolonged negotiations reportedly discouraged a major regional developer. Governments everywhere reserve the right to renegotiate contracts, but when processes appear open-ended, investors begin to factor in higher risk.

This is why policy certainty may be the most powerful – and least expensive – stimulus available to Sri Lanka in 2026.

The macroeconomic outlook already underscores this point. Analysts expect moderate growth in the range of about 3 – 4 percent this year, while the International Monetary Fund has projected roughly 3.1 percent, linking stronger expansion to steady reform implementation rather than new borrowing. In other words, execution matters more than announcements.

Institutional efficiency also plays a role. With more than a million cases pending in Sri Lanka’s courts, businesses often see legal delays as an additional cost of operating in the country. Reducing that backlog – particularly in commercial disputes – would signal that contracts and administrative decisions can be resolved within predictable timeframes.

Tourism offers another illustration. Visitor arrivals have surged, yet revenue growth has lagged because spending per traveller remains modest. Improving digital payments, mobility and dispute resolution may prove just as important as marketing campaigns if Sri Lanka hopes to extract greater value from the sector.

All in all, these signals reveal a simple truth. Sri Lanka does not necessarily lack investor interest; it risks losing momentum if processes remain uncertain.

For policymakers, the challenge therefore lies in bridging perception and practice. Codifying approval timelines, digitizing government services, and completing a handful of transparent public-private partnerships could quickly demonstrate that decisions in Sri Lanka are not only possible but reliable.

If that credibility gap is closed, the message delivered by the BOI chairman that Sri Lanka is open for business – will resonate far more strongly in global boardrooms. Because in frontier markets, the most valuable incentive is not a tax break or subsidy. It is certainty.

By Sanath Nanayakkare

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Business

Low-floor buses launched to boost accessible public transport for differently-abled

Published

21 hours ago

2026/04/26

Thilina Walpola

A new low-floor bus service that gives priority to persons with disabilities and special needs was launched last Tuesday (21) from the Makumbura Multimodal Center (MMC).

The service was inaugurated under the patronage of Minister of Transport, Highways and Urban Development, Bimal Rathnayake.

Accordingly, ten specially designed low-floor buses have been introduced into the transport service today. These buses are specially designed so that wheelchair users, visually impaired passengers and also expectant women can board the bus with ease, the Transport Ministry said.

Each bus has 30 passenger seats and separate seating areas have been allocated for passengers using wheelchairs.

The pilot project operates on routes from Makumbura to Colombo Fort and from Makumbura to Kadawatha. These routes also cover major hospitals including the Colombo National Hospital and the Maharagama Apeksha Hospital.

Speaking at the event, Subject Minister Bimal Rathnayake stated that while these buses prioritize the differently-abled community, they will also provide a comfortable and reliable transport service for all passengers.

He also noted that 122 low-floor buses are planned to be introduced into service before the end of this year, and that in the future the service will be expanded to areas such as Kandy, Batticaloa, Matara and Jaffna.

Business

Nestlé Lanka Announces Change in Leadership

Published

21 hours ago

2026/04/26

Thilina Walpola

Nestlé Lanka Limited has announced the appointment of Manav Sahni as its Chairman and Managing Director effective 01 May 2026. He will be succeeding Bernie Stefan, who will be transitioning to a new global role within the Nestlé Group. Bernie Stefan led Nestlé’s Sri Lankan operations through a particularly challenging time since 2023 – and has successfully guided the company through a strategic turnaround, positioning it on a axis for sustainable growth.

Speaking on his tenure at Nestlé Lanka, Bernie commented “Leading Nestlé Lanka has been a deeply meaningful chapter in my Nestlé journey. I am grateful to have worked alongside an amazing and resilient team that continues to make a difference for Sri Lankans across the country. On a personal note, it was an amazing opportunity to live on this beautiful island and experience firsthand the openness, warmth and kindness of its people, which has been the highlight of my Nestlé career to date. As Nestlé Lanka marks 120 years of enriching Sri Lankan lives, it is especially humbling to reflect on the role we have played in building on this legacy – positively touching individuals and families, strengthening community partnerships, and advancing our sustainability commitments. I am thankful to my colleagues, partners and stakeholders for their collaboration and trust, and to the wider business community, including through my role as a Board Member of the Ceylon Chamber of Commerce, for the opportunity to reinforce Nestlé’s commitment to responsible corporate citizenship. I leave very confident in the strength of the team and the journey that lies ahead.”

Manav Sahni brings with him over 18 years of experience in the FMCG & Telecom sector. Prior to taking on the role as Chairman and Managing Director of Nestlé Lanka Limited, he has been heading Nestlé’s Dairy business for the South Asia Region, where he expertly managed a highly diverse portfolio, driving sustainable business transformation.

“I am thrilled to take on the role of Chairman and Managing Director of Nestlé Lanka at such a pivotal moment in its journey. Nestlé has been part of Sri Lankan households for generations, and I am excited to work with the team to continue delighting consumers with tasty and nutritious products, while strengthening the positive impact we create through our brands and initiatives.”

Business

Majestic Cineplex Returns Bigger Better and More Immersive

Published

21 hours ago

2026/04/26

Thilina Walpola

Ceylon Theatres will unveil the newly revamped Majestic Cineplex on the 29th of April 2026, beginning a new chapter for one of Sri Lanka’s best known cinema destinations. Located at Majestic City Colombo, Majestic Cineplex returns with major technology upgrades, enhanced comfort, and a range of premium viewing options, reinforcing Ceylon Theatres’ long standing reputation for raising the bar in cinema entertainment experiences in Sri Lanka. Accordingly, the upgraded Cineplex will be completely open to the public from 29th April 2026 onwards.

For generations of moviegoers, Majestic Cineplex has been a landmark venue in Colombo, and its latest transformation brings together the nostalgia of a familiar name with the excitement of a modern cinema experience. Leading the new screen line up is Majestic Platinum, which introduces Sri Lanka’s first and only digital LED cinema screen. Designed to deliver sharper visuals, deeper contrast, richer colour, and outstanding clarity, the auditorium features a 3D 4K Tricorne LED Cinema Screen together with Dolby Atmos surround sound. Majestic Platinum offers 226 seats, including 18 VIP recliner seats for those chasing a premium cinema experience.

The cineplex also features three additional theatres, each designed to offer a high quality movie experience. Majestic Superior includes Barco 2K projection, 3D capability, and 7.1 surround sound, with seating for 150 patrons. Majestic Ultra features the same advanced projection and audio systems with 149 seats. Majestic Gold offers a more private luxury setting with Barco 2K projection, 3D capability, DTSX surround sound, and 30 leather recliner seats, ideal for those looking for the most premium and exclusive experience.

Patrons can also enjoy an upgraded café experience with freshly prepared and ready to eat food available for purchase at the counter, along with convenience of being served to your seat. The new café experience, together with the upgraded theatres make for a more relaxed, enjoyable, and fulfilling experience for everyone.

Discussing the relaunch, Ganga Rathuvithana, General Manager Operations at Ceylon Theatres said, “Majestic Cineplex has always been a special part of Colombo’s cinema culture, and we are proud to welcome audiences back with an experience that reflects the future of movie entertainment. We have always believed in investing in the best available technology, from introducing Sri Lanka’s first 3D cinema to now launching the country’s first digital LED cinema screen. Our revamped Majestic Cineplex is designed to give movie lovers something truly special.”