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Revitalization of industrial development in Sri Lanka

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Dr. René van Berkel outlines the UNIDO Country Programme for Sri Lanka (2021-25)

The United Nations Industrial Development Organization (UNIDO) recently commenced its 18M Euro Country Program for Sri Lanka, under the auspices of the Minister of Industries Hon. Wimal Weerawansa. At the signing ceremony Weerawansa expressed his appreciation to UNIDO for extending support to the Sri Lankan industries under UNIDO’s mission of promoting and accelerating inclusive and sustainable industrial development. The Secretary to the Ministry of Industries, Gen. Daya Ratnayake, signed the new Country Program on behalf of the Ministry, while Dr. Rene van Berkel, UNIDO Representative for Sri Lanka signed for UNIDO. Nawaz Rajabdeen, National Director of UNIDO’s Focal Point Office was also present at the occasion.

The ceremony was followed by the inaugural meeting of the Sri Lanka Joint Steering Committee for UNIDO’s country programme chaired by the Gen. Ratnayake and attended by representatives of relevant government and private sector stakeholder institutions. At the commencement Dr. van Berkel shared some highlights on Sri Lanka’s manufacturing sector review by UNIDO. While Sri Lanka has moved upward on the development ladder and is currently approaching upper middle-income graduation (99.1% of threshold), Manufacturing Value Added (MVA) in 2020 was 16%, whereas for example Indonesia achieves 20% and Thailand 26% therefore indicating a wide gap. Statistics also show limited diversification particularly in terms of exports and employment. The Medium and high-tech (MHT) is at a relatively low level in Sri Lanka at 7-8%, while it is up to 40% in other middle-income countries in South East Asia. However, these could also be seen as opportunities, pointed out Dr. van Berkel, who went on to share insights into the Country Program.

Sri Lanka is at 77th out of 131 indexed countries in UNIDO’s index for Sustainable Development Goal 9 on inclusive and sustainable industrialization. There is potential economic vulnerability arising out of early de-industrialization and limited diversification. Manufacturing growth in the country is seen hindered by lack of entrepreneurship, innovations, technology and management skills; low investor confidence; shortage of productive/skilled labour; limited diversification; and quality/trade access. This is a concern, as there is international consensus that the level of income must increase beyond a certain value before manufacturing can be decreased. This can be considered an economic vulnerability in terms of Sri Lanka.

Past UNIDO Assistance

In the recent past, UNIDO has worked mostly on the environmental domain and focused on hazardous chemicals. The focus later shifted to the quality infrastructure in Sri Lanka by improving and upgrading the operating procedures of different quality institutions, and how businesses need to be run with additional training and the building of competencies to improve national quality infrastructure (NQI).

UNIDO has also provided expertise to MSMEs in the food and spices sector, to improve their manufacturing practices, food quality, and food safety – which were highlighted as key areas of concern. An example would be the certification procedure for ‘Pure Ceylon Cinnamon’ for additional brand value. This certification is currently at the final stages of approval in the EU.

Another UNIDO project focused on bamboo, which is a natural solution against waterlogging. Bamboo is also a biomaterial that can be used for energy, and as an alternative to wood for handicrafts, furniture and household utensils. UNIDO assisted the bamboo sector in Sri Lanka by promoting better seedlings and carried out some work on setting up bamboo plantations and of a training and demonstration centre at the Industrial Development Board. Bamboo was seen to be particularly beneficial as an inter-crop in tea estates with many benefits including shade and improved agronomy of the plantations.

The upcoming UNIDO Country Program in Sri Lanka (2021-2025)

Objective of the UNIDO Country Programme is to provide a programming framework for identification, development and execution of catalytical technical cooperation services in the country. It is expected to achieve and sustain critical impact at scale through: Government co-ownership and inter-ministerial coordination; Focus on prioritized industrial sectors or areas matching country needs and UNIDO comparative advantages; Inclusion of policy advisory services; and Engagement and synergies with partner interventions to upscale results. It was noted that projects under the program depend on partners and the funds available.

The major thrust areas of the program include Industrial Development Policy, Value addition to produce and Solutions for climate resources.

1. Industrial Development Policy

For the industrial sector to grow, there must first be a consensus among the policymakers and key stakeholders on the priority actions. This emphasizes the need for industrial policymaking – which is a process, with specific instruments, building capabilities of institutions, delivery, monitoring, and evaluation, supported by industrial statistics and information that can made available. A public-private partnership would be essential, where the Government, chambers, and industry associations work together closely.

Under the policy, driving manufacturing excellence and entrepreneurship needs to be a top priority, where businesses are encouraged to be adopt modern management practices and capture business opportunities.

2. Value addition to produce

Sri Lanka is endowed with many natural resources ranging from fisheries, rubber, coconut, tea, etc., but the amount of value that is being generated is comparatively low, for both the domestic and international markets. Lack of sufficient advanced processing is seen as one key reason. Entrepreneurs need to recognize that there is an opportunity to make more money out of what is already available – by improving food safety, targeting the higher markets, and advanced processing – not forgetting the processing and quality infrastructure which also needs to be developed.

3. Solutions for climate and resources

This area basically deals with minimizing environmental impacts. Industries are the polluting agents and contribute to the climate problem, but they’re also an integral part of the climate solution. Eventually, businesses would need to come up with energy-efficient products. There is also a call to shift to source energy from renewable sources such as hydropower, wind, solar, bioenergy etc. The ultimate transition would be towards a Circular Economy -– changing the fundamental approach of taking things out of the environment, making things, using them, then throwing them away – which is a linear cycle. Instead, the Circular Economy defines the cycle as: take – make – use – reuse – recycle. In a circular economy, the waste is in fact being designed out. Hence zero waste – and zero recycling. It makes excellent economic sense in manufacturing terms too.

Opportunities for Sri Lanka

The Covid pandemic has caused a massive impact on the global manufacturing sector, and Sri Lanka is no exception. Businesses would now need to spend more attention on health and safety now than ever before. Accordingly, workplace practices would need to change to accommodate new health guidelines, and work procedures too will have to be adjusted.

Accelerated as a result of the pandemic, digitalization has been seen vigorously taking place around the world. For instance, payment and marketing are already digitalized by industries across the board. But the Fourth Industrial Revolution (4IR) will create digitalization within the manufacturing process. It is envisaged that some activities would be taken over by robots, resulting in changes in jobs and skills requirements for us humans. If one does not respond to these changes – they would be left behind.

MSME energy efficiency is essential in certain sectors, such as the ceramics industry, which utilizes higher energy, amounting to over 50% of the total cost of the product. In such cases lowering the energy costs make huge economic sense. UNIDO has been involved in energy awareness raising for such industries. This means not just saving, where one feels good about it, but is actually saving energy and thereby contributing to the profit margin. Energy efficiency has huge economic benefits and therefor a sound economic perspective is essential when embracing the concept.

And as for alternate energy for MSMEs, UNIDO first recommends energy efficiency before moving onto alternate energy. Rationale is that it makes no sense to generate renewable energy if the business is not utilizing it efficiently in the first place. Hence, energy efficiency should fundamentally come first.

While investing in Renewable Energy (RE) is the way forward, the policy regime will have a direct bearing on investment decision. Another argument is that RE can be expensive, but there are ways of combining different technologies depending on finance agreements. For example, if the purchase agreements go for a long period, then RE service contracts can be included – if the scale justifies. Sri Lanka is a member of the International Solar Alliance. As such, it would be a good opportunity for Sri Lanka to promote solar energy and best practices and create an investment climate for solar power, which can bring back big dividends if approached the right way. International investors could also be potentially interested in such RE projects.



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Disaster-proofing paradise: Sri Lanka’s new path to global resilience

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iyadasa Advisor to the Ministry of Science & Technology and a Board of Directors of Sri Lanka Atomic Energy Regulatory Council A value chain management consultant to www.vivonta.lk

As climate shocks multiply worldwide from unseasonal droughts and flash floods to cyclones that now carry unpredictable fury Sri Lanka, long known for its lush biodiversity and heritage, stands at a crossroads. We can either remain locked in a reactive cycle of warnings and recovery, or boldly transform into the world’s first disaster-proof tropical nation — a secure haven for citizens and a trusted destination for global travelers.

The Presidential declaration to transition within one year from a limited, rainfall-and-cyclone-dependent warning system to a full-spectrum, science-enabled resilience model is not only historic — it’s urgent. This policy shift marks the beginning of a new era: one where nature, technology, ancient wisdom, and community preparedness work in harmony to protect every Sri Lankan village and every visiting tourist.

The Current System’s Fatal Gaps

Today, Sri Lanka’s disaster management system is dangerously underpowered for the accelerating climate era. Our primary reliance is on monsoon rainfall tracking and cyclone alerts — helpful, but inadequate in the face of multi-hazard threats such as flash floods, landslides, droughts, lightning storms, and urban inundation.

Institutions are fragmented; responsibilities crisscross between agencies, often with unclear mandates and slow decision cycles. Community-level preparedness is minimal — nearly half of households lack basic knowledge on what to do when a disaster strikes. Infrastructure in key regions is outdated, with urban drains, tank sluices, and bunds built for rainfall patterns of the 1960s, not today’s intense cloudbursts or sea-level rise.

Critically, Sri Lanka is not yet integrated with global planetary systems — solar winds, El Niño cycles, Indian Ocean Dipole shifts — despite clear evidence that these invisible climate forces shape our rainfall, storm intensity, and drought rhythms. Worse, we have lost touch with our ancestral systems of environmental management — from tank cascades to forest sanctuaries — that sustained this island for over two millennia.

This system, in short, is outdated, siloed, and reactive. And it must change.

A New Vision for Disaster-Proof Sri Lanka

Under the new policy shift, Sri Lanka will adopt a complete resilience architecture that transforms climate disaster prevention into a national development strategy. This system rests on five interlinked pillars:

Science and Predictive Intelligence

We will move beyond surface-level forecasting. A new national climate intelligence platform will integrate:

AI-driven pattern recognition of rainfall and flood events

Global data from solar activity, ocean oscillations (ENSO, MJO, IOD)

High-resolution digital twins of floodplains and cities

Real-time satellite feeds on cyclone trajectory and ocean heat

The adverse impacts of global warming—such as sea-level rise, the proliferation of pests and diseases affecting human health and food production, and the change of functionality of chlorophyll—must be systematically captured, rigorously analysed, and addressed through proactive, advance decision-making.

This fusion of local and global data will allow days to weeks of anticipatory action, rather than hours of late alerts.

Advanced Technology and Early Warning Infrastructure

Cell-broadcast alerts in all three national languages, expanded weather radar, flood-sensing drones, and tsunami-resilient siren networks will be deployed. Community-level sensors in key river basins and tanks will monitor and report in real-time. Infrastructure projects will now embed climate-risk metrics — from cyclone-proof buildings to sea-level-ready roads.

Governance Overhaul

A new centralised authority — Sri Lanka Climate & Earth Systems Resilience Authority — will consolidate environmental, meteorological, Geological, hydrological, and disaster functions. It will report directly to the Cabinet with a real-time national dashboard. District Disaster Units will be upgraded with GN-level digital coordination. Climate literacy will be declared a national priority.

People Power and Community Preparedness

We will train 25,000 village-level disaster wardens and first responders. Schools will run annual drills for floods, cyclones, tsunamis and landslides. Every community will map its local hazard zones and co-create its own resilience plan. A national climate citizenship programme will reward youth and civil organisations contributing to early warning systems, reforestation (riverbank, slopy land and catchment areas) , or tech solutions.

Reviving Ancient Ecological Wisdom

Sri Lanka’s ancestors engineered tank cascades that regulated floods, stored water, and cooled microclimates. Forest belts protected valleys; sacred groves were biodiversity reservoirs. This policy revives those systems:

Restoring 10,000 hectares of tank ecosystems

Conserving coastal mangroves and reintroducing stone spillways

Integrating traditional seasonal calendars with AI forecasts

Recognising Vedda knowledge of climate shifts as part of national risk strategy

Our past and future must align, or both will be lost.

A Global Destination for Resilient Tourism

Climate-conscious travelers increasingly seek safe, secure, and sustainable destinations. Under this policy, Sri Lanka will position itself as the world’s first “climate-safe sanctuary island” — a place where:

Resorts are cyclone- and tsunami-resilient

Tourists receive live hazard updates via mobile apps

World Heritage Sites are protected by environmental buffers

Visitors can witness tank restoration, ancient climate engineering, and modern AI in action

Sri Lanka will invite scientists, startups, and resilience investors to join our innovation ecosystem — building eco-tourism that’s disaster-proof by design.

Resilience as a National Identity

This shift is not just about floods or cyclones. It is about redefining our identity. To be Sri Lankan must mean to live in harmony with nature and to be ready for its changes. Our ancestors did it. The science now supports it. The time has come.

Let us turn Sri Lanka into the world’s first climate-resilient heritage island — where ancient wisdom meets cutting-edge science, and every citizen stands protected under one shield: a disaster-proof nation.

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The minstrel monk and Rafiki the old mandrill in The Lion King – I

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Why is national identity so important for a people? AI provides us with an answer worth understanding critically (Caveat: Even AI wisdom should be subjected to the Buddha’s advice to the young Kalamas):

‘A strong sense of identity is crucial for a people as it fosters belonging, builds self-worth, guides behaviour, and provides resilience, allowing individuals to feel connected, make meaningful choices aligned with their values, and maintain mental well-being even amidst societal changes or challenges, acting as a foundation for individual and collective strength. It defines “who we are” culturally and personally, driving shared narratives, pride, political action, and healthier relationships by grounding people in common values, traditions, and a sense of purpose.’

Ethnic Sinhalese who form about 75% of the Sri Lankan population have such a unique identity secured by the binding medium of their Buddhist faith. It is significant that 93% of them still remain Buddhist (according to 2024 statistics/wikipedia), professing Theravada Buddhism, after four and a half centuries of coercive Christianising European occupation that ended in 1948. The Sinhalese are a unique ancient island people with a 2500 year long recorded history, their own language and country, and their deeply evolved Buddhist cultural identity.

Buddhism can be defined, rather paradoxically, as a non-religious religion, an eminently practical ethical-philosophy based on mind cultivation, wisdom and universal compassion. It is  an ethico-spiritual value system that prioritises human reason and unaided (i.e., unassisted by any divine or supernatural intervention) escape from suffering through self-realisation. Sri Lanka’s benignly dominant Buddhist socio-cultural background naturally allows unrestricted freedom of religion, belief or non-belief for all its citizens, and makes the country a safe spiritual haven for them. The island’s Buddha Sasana (Dispensation of the Buddha) is the inalienable civilisational treasure that our ancestors of two and a half millennia have bequeathed to us. It is this enduring basis of our identity as a nation which bestows on us the personal and societal benefits of inestimable value mentioned in the AI summary given at the beginning of  this essay.

It was this inherent national identity that the Sri Lankan contestant at the 72nd Miss World 2025 pageant held in Hyderabad, India, in May last year, Anudi Gunasekera, proudly showcased before the world, during her initial self-introduction. She started off with a verse from the Dhammapada (a Pali Buddhist text), which she explained as meaning “Refrain from all evil and cultivate good”. She declared, “And I believe that’s my purpose in life”. Anudi also mentioned that Sri Lanka had gone through a lot “from conflicts to natural disasters, pandemics, economic crises….”, adding, “and yet, my people remain hopeful, strong, and resilient….”.

 “Ayubowan! I am Anudi Gunasekera from Sri Lanka. It is with immense pride that I represent my Motherland, a nation of resilience, timeless beauty, and a proud history, Sri Lanka.

“I come from Anuradhapura, Sri Lanka’s first capital, and UNESCO World Heritage site, with its history and its legacy of sacred monuments and stupas…….”.

The “inspiring words” that Anudi quoted are from the Dhammapada (Verse 183), which runs, in English translation: “To avoid all evil/To cultivate good/and to cleanse one’s mind -/this is the teaching of the Buddhas”. That verse is so significant because it defines the basic ‘teaching of the Buddhas’ (i.e., Buddha Sasana; this is how Walpole Rahula Thera defines Buddha Sasana in his celebrated introduction to Buddhism ‘What the Buddha Taught’ first published in1959).

Twenty-five year old Anudi Gunasekera is an alumna of the University of Kelaniya, where she earned a bachelor’s degree in International Studies. She is planning to do a Master’s in the same field. Her ambition is to join the foreign service in Sri Lanka. Gen Z’er Anudi is already actively engaged in social service. The Saheli Foundation is her own initiative launched to address period poverty (i.e., lack of access to proper sanitation facilities, hygiene and health education, etc.) especially  among women and post-puberty girls of low-income classes in rural and urban Sri Lanka.

Young Anudi is primarily inspired by her patriotic devotion to ‘my Motherland, a nation of resilience, timeless beauty, and a proud history, Sri Lanka’. In post-independence Sri Lanka, thousands of young men and women of her age have constantly dedicated themselves, oftentimes making the supreme sacrifice, motivated by a sense of national identity, by the thought ‘This is our beloved Motherland, these are our beloved people’.

The rescue and recovery of Sri Lanka from the evil aftermath of a decade of subversive ‘Aragalaya’ mayhem is waiting to be achieved, in every sphere of national engagement, including, for example, economics, communications, culture and politics, by the enlightened Anudi Gunasekeras and their male counterparts of the Gen Z, but not by the demented old stragglers lingering in the political arena listening to the unnerving rattle of “Time’s winged chariot hurrying near”, nor by the baila blaring monks at propaganda rallies.

Politically active monks (Buddhist bhikkhus) are only a handful out of  the Maha Sangha (the general body of Buddhist bhikkhus) in Sri  Lanka, who numbered just over 42,000  in 2024. The vast majority of monks spend their time quietly attending to their monastic duties. Buddhism upholds social and emotional virtues such as universal compassion, empathy, tolerance and forgiveness that protect a society from the evils of tribalism, religious bigotry and death-dealing religious piety.

Not all monks who express or promote political opinions should be censured. I choose to condemn only those few monks who abuse the yellow robe as a shield in their narrow partisan politics. I cannot bring myself to disapprove of the many socially active monks, who are articulating the genuine problems that the Buddha Sasana is facing today. The two bhikkhus who are the most despised monks in the commercial media these days are Galaboda-aththe Gnanasara and Ampitiye Sumanaratana Theras.  They have a problem with their mood swings. They have long been whistleblowers trying to raise awareness respectively, about spreading religious fundamentalism, especially, violent Islamic Jihadism, in the country and about the vandalising of the Buddhist archaeological heritage sites of the north and east provinces. The two middle-aged monks (Gnanasara and Sumanaratana) belong to this respectable category. Though they are relentlessly attacked in the social media or hardly given any positive coverage of the service they are doing, they do nothing more than try to persuade the rulers to take appropriate action to resolve those problems while not trespassing on the rights of people of other faiths.

These monks have to rely on lay political leaders to do the needful, without themselves taking part in sectarian politics in the manner of ordinary members of the secular society. Their generally demonised social image is due, in my opinion, to  three main reasons among others: 1) spreading misinformation and disinformation about them by those who do not like what they are saying and doing, 2) their own lack of verbal restraint, and 3) their being virtually abandoned to the wolves by the temporal and spiritual authorities.

(To be continued)

By Rohana R. Wasala ✍️

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US’ drastic aid cut to UN poses moral challenge to world

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An UN humanitarian mission in the Gaza. [File: Ashraf Amra/Anadolu Agency]

‘Adapt, shrink or die’ – thus runs the warning issued by the Trump administration to UN humanitarian agencies with brute insensitivity in the wake of its recent decision to drastically reduce to $2bn its humanitarian aid to the UN system. This is a substantial climb down from the $17bn the US usually provided to the UN for its humanitarian operations.

Considering that the US has hitherto been the UN’s biggest aid provider, it need hardly be said that the US decision would pose a daunting challenge to the UN’s humanitarian operations around the world. This would indeed mean that, among other things, people living in poverty and stifling material hardships, in particularly the Southern hemisphere, could dramatically increase. Coming on top of the US decision to bring to an end USAID operations, the poor of the world could be said to have been left to their devices as a consequence of these morally insensitive policy rethinks of the Trump administration.

Earlier, the UN had warned that it would be compelled to reduce its aid programs in the face of ‘the deepest funding cuts ever.’ In fact the UN is on record as requesting the world for $23bn for its 2026 aid operations.

If this UN appeal happens to go unheeded, the possibilities are that the UN would not be in a position to uphold the status it has hitherto held as the world’s foremost humanitarian aid provider. It would not be incorrect to state that a substantial part of the rationale for the UN’s existence could come in for questioning if its humanitarian identity is thus eroded.

Inherent in these developments is a challenge for those sections of the international community that wish to stand up and be counted as humanists and the ‘Conscience of the World.’ A responsibility is cast on them to not only keep the UN system going but to also ensure its increased efficiency as a humanitarian aid provider to particularly the poorest of the poor.

It is unfortunate that the US is increasingly opting for a position of international isolation. Such a policy position was adopted by it in the decades leading to World War Two and the consequences for the world as a result of this policy posture were most disquieting. For instance, it opened the door to the flourishing of dictatorial regimes in the West, such as that led by Adolph Hitler in Germany, which nearly paved the way for the subjugation of a good part of Europe by the Nazis.

If the US had not intervened militarily in the war on the side of the Allies, the West would have faced the distressing prospect of coming under the sway of the Nazis and as a result earned indefinite political and military repression. By entering World War Two the US helped to ward off these bleak outcomes and indeed helped the major democracies of Western Europe to hold their own and thrive against fascism and dictatorial rule.

Republican administrations in the US in particular have not proved the greatest defenders of democratic rule the world over, but by helping to keep the international power balance in favour of democracy and fundamental human rights they could keep under a tight leash fascism and linked anti-democratic forces even in contemporary times. Russia’s invasion and continued occupation of parts of Ukraine reminds us starkly that the democracy versus fascism battle is far from over.

Right now, the US needs to remain on the side of the rest of the West very firmly, lest fascism enjoys another unfettered lease of life through the absence of countervailing and substantial military and political power.

However, by reducing its financial support for the UN and backing away from sustaining its humanitarian programs the world over the US could be laying the ground work for an aggravation of poverty in the South in particular and its accompaniments, such as, political repression, runaway social discontent and anarchy.

What should not go unnoticed by the US is the fact that peace and social stability in the South and the flourishing of the same conditions in the global North are symbiotically linked, although not so apparent at first blush. For instance, if illegal migration from the South to the US is a major problem for the US today, it is because poor countries are not receiving development assistance from the UN system to the required degree. Such deprivation on the part of the South leads to aggravating social discontent in the latter and consequences such as illegal migratory movements from South to North.

Accordingly, it will be in the North’s best interests to ensure that the South is not deprived of sustained development assistance since the latter is an essential condition for social contentment and stable governance, which factors in turn would guard against the emergence of phenomena such as illegal migration.

Meanwhile, democratic sections of the rest of the world in particular need to consider it a matter of conscience to ensure the sustenance and flourishing of the UN system. To be sure, the UN system is considerably flawed but at present it could be called the most equitable and fair among international development organizations and the most far-flung one. Without it world poverty would have proved unmanageable along with the ills that come along with it.

Dehumanizing poverty is an indictment on humanity. It stands to reason that the world community should rally round the UN and ensure its survival lest the abomination which is poverty flourishes. In this undertaking the world needs to stand united. Ambiguities on this score could be self-defeating for the world community.

For example, all groupings of countries that could demonstrate economic muscle need to figure prominently in this initiative. One such grouping is BRICS. Inasmuch as the US and the West should shrug aside Realpolitik considerations in this enterprise, the same goes for organizations such as BRICS.

The arrival at the above international consensus would be greatly facilitated by stepped up dialogue among states on the continued importance of the UN system. Fresh efforts to speed-up UN reform would prove major catalysts in bringing about these positive changes as well. Also requiring to be shunned is the blind pursuit of narrow national interests.

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