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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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Features

Civilizational dialogue proving a remote possibility as realpolitik rages

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Political leaders at the Shanghai Cooperation Organization Summit 2026. (Photo by PROKOFYEV / POOL / AFP)

Looking back over the years since the 9/11 catastrophe, it could be said that barring former Iranian President Mohammad Khatami no world political leader of note has made an earnest effort to change the nature of global political discourse for the better. Khatami won world acclaim for his pronouncement that the time is right to launch and sustain a ‘Dialogue among Civilizations’.

This was in marked contrast to US political scientist Samuel P. Huntingdon’s epochal theses, formulated in the wake of 9/11 and other global political tumults that the Post Cold War era is essentially one of conflicts among civilizations. That is, people’s identity markers, such as culture and religion, are the prime shaping forces of international conflicts.

From a Political Realism standpoint, Huntingdon’s theory may seem to have gained in credibility over the years but it is Khatami’s pronouncement that has evoked an empathetic response in the hearts and minds of publics world wide. So much so, 2001 was proclaimed by the UN General Assembly as the ‘Year of Dialogue among Civilizations’.

It could be said that the latter proclamation was an endeavour to give back to humans their essential identity of peace-makers. It was an eschewing of the position that war and conflict are central to the human condition and amounted to upholding constructive dialogue among peoples and civilizations as a path to peace.

That things have not worked out in the world in keeping with the expectations of peace makers does not in any way invalidate the thesis that peace is the essential propensity of humans.

If peace-making is seemingly ineffective it is primarily because the path to peace is narrow, tortuous and time-consuming. On the other hand, violence usually misleadingly recommends itself to the human as the more expedient, cost-effective way out of a conflictual situation. However, the ultimate cost of the latter approach is prohibitive because it brutalizes the human beyond recognition.

Some of the evidence is before our eyes. The Trump administration, for example, has, minus much forethought, unleashed what may be described as a ‘quick-fix’ war against Iran but is now finding that it is in a veritable military quagmire in West Asia. The priority for the administration now seems to be a face-saving escape strategy. Such are the costs of the war option.

However, there is no denying that much remains to be done by the world community to bring peoples and cultures together with a view to enabling them to work as one for the cause of a less dangerous world.

Meanwhile, the broad divisions in international politics continue and past political polarities are lingering to the detriment of enhanced international understanding. The East and the West and the South and the North, for instance, are continuing to work in separate collectives, more or less, and no notable efforts are being made by the international community to bring these sides together for the purpose of united constructive action that could usher greater international well being.

The recent Shanghai Cooperation Organization Summit, 2026, held in Kyrgyztan was a replication of the above broad trends but there were some statements at the forum by Indian Prime Minister Narendra Modi that deserve special scrutiny and comment.

Modi was quoted saying among other things: ‘The land of Gandhi and the land of Buddha share a single message: the path to peace!..We must move away from endless war towards an end to the war. This is essentially for the well being of humanity. A peaceful resolution to all issues at the earliest is the call of humanity, and this is India’s message.’

The above is the language of international peace and unity. It is such language that will help in building bridges among civilizations and advance the cause of world peace. Besides, it will help bring a measure of understanding between North and South.

In this regard, the Trump administration could take a leaf or more from the Modi government. Unless it makes a ‘U turn’, as it were, in the direction of peace and reconciliation it is very unlikely that the US and the world would experience any stability worth speaking of.

Right now the US is savaging the sovereignty of Venezuela. It is a question of the ‘Empire striking back’ but Venezuela is a far cry from Iran. Iran has outsmarted the US on the battle field and is in a position to influence broad trends in the world economy since it still has control over the Hormuz Straits. That is, Iran could exercise a determining influence over world oil, gas and energy prices. In short, the US consumer’s future peace of mind is very much in the hands of Iran.

Given the above backdrop it should have dawned on the US political leadership that working towards cordial relations with Iran is the most advisable option. The US, simply, has too much to lose otherwise.

Likewise, Russia too needs to take a leaf from India. It is plain to see that its invasion of Ukraine is proving totally ineffective. It has not brought any measure of peace for the Russian people. Russia is right now experiencing a rerun of its military misadventure in Afghanistan. On the other hand, sections of the peoples concerned have been victimized and even brutalized.

Accordingly, there needs to be a coming together of democratic opinion worldwide for a fresh consideration of the options facing humanity. There is a dire need for value-based politics to take the place of Realpolitik. Besides, the language of peace and humanity needs to replace current divisive discourse with its stress on polarities and antagonisms.

International organizations of the stature of the UN need to take the lead in spearheading the above initiatives. Right now the UN gives the impression of being a spent force. This columnist hopes that he would be proved wrong on this score because the UN remains the only hope of the poor and victimized. It will be in the interests of all peoples for the UN to rejuvenate itself and dedicate itself increasingly enthusiastically to the cause of international peace.

Whether it be the South or North, dynamic, visionary political leadership and direction emerges as essential. The need is for voices that would espouse peace and accord across boundaries and divisions. For South Asia, India and Pakistan have the potential to fill this lacuna.

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Sri Lanka’s constitutional test: Judicial independence beyond immediate political moment

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Superior Court Complex, Colombo

by Shelton Dharmaratne

Sri Lanka has reached an important constitutional moment.

The proposed 22nd Amendment has moved beyond political debate and into the constitutional process through which its validity will be examined. That development should change the character of the national discussion.

That is understandable in a politically contested environment. But Sri Lanka should now resist reducing a question of constitutional design to a contest over political positions.

The deeper issue concerns the relationship between constitutional reform, judicial independence and public confidence in the institutions of the State.

The Supreme Court will determine the constitutional questions before it. Public commentators should therefore exercise restraint in predicting, interpreting or seeking to influence that determination. But restraint does not require silence. It requires a more rigorous discussion of the institutional principles at stake.

A narrower constitutional question than the political debate suggests

The proposed amendment principally concerns the retirement ages of judges of the Supreme Court and Court of Appeal, together with an increase in the maximum number of judges permitted on the Court of Appeal.

Under the proposal, the retirement age of Supreme Court judges would rise from 65 to 67 and that of Court of Appeal judges from 63 to 65. The maximum number of Court of Appeal judges would also increase from 19 to 24.

Other proposed changes concerning the retirement ages of judges in the lower courts arise under separate legislation. This distinction matters because the public debate has sometimes treated the wider package of judicial reform as though it formed a single constitutional proposal.

Nor should the central issue be reduced to whether retaining experienced judges is inherently good or inherently dangerous. Both propositions are too simplistic.

Sri Lanka faces a substantial burden of pending litigation, and delays in the administration of justice impose significant costs on citizens, businesses and the State. Experienced judges represent an institutional resource. Continuity, accumulated knowledge and familiarity with complex areas of law cannot always be replaced immediately.

Those are legitimate policy considerations.

But the opposing concern is equally important: judicial tenure is not merely an employment condition. It is a structural component of judicial independence.

The real question is institutional

The critical question is not whether an individual judge is capable of acting impartially. It is whether the constitutional structure provides adequate protection against circumstances in which judicial tenure could become connected, directly or indirectly, with political authority.

That is an institutional question, not an accusation against individual judges.

A judge may be entirely conscientious and independent while the institutional arrangements surrounding the judiciary nevertheless create public doubts about independence. Constitutional democracies therefore cannot depend solely on the personal integrity of office-holders. They must construct institutions capable of preserving independence even when governments, individuals and political circumstances change.

This is particularly relevant when constitutional reform concerns the tenure of serving members of the superior judiciary.

The institutional sensitivity of such a proposal should neither be exaggerated into an allegation of improper motive nor dismissed as irrelevant. The appropriate response is transparency, procedural fairness and confidence in constitutional safeguards.

Legitimate objectives do not settle constitutional questions

The government has stated that its objectives include strengthening the administration of justice, addressing delays, retaining judicial experience and increasing institutional capacity.

Those objectives deserve serious consideration. Sri Lanka needs judicial reform. Citizens waiting years for their cases to be concluded experience the justice system very differently from those discussing it in Parliament, courtrooms or universities.

A government is therefore entitled to propose reforms designed to improve judicial efficiency.

But legitimate objectives do not automatically resolve constitutional objections. The relevant question is whether the means chosen are compatible with the constitutional structure and whether sufficient safeguards exist against unintended institutional consequences.

That is precisely why constitutional scrutiny matters.

The concerns of the Bar Association of Sri Lanka (BASL) should likewise be examined without political labelling. Opposition to the proposed changes should not automatically be characterised as opposition to judicial reform or an attempt to obstruct the government. At the same time, invoking judicial independence does not place any argument beyond scrutiny.

The appropriate questions are straightforward:

Does extending judicial tenure strengthen the administration of justice?

What risks, if any, could it create for judicial independence?

Are adequate institutional safeguards in place?

Does the proposal operate prospectively, or does it affect judges already serving?

Could the same objectives be achieved by filling vacancies, increasing judicial capacity, improving court administration and strengthening case management?

These questions can be examined rationally without attributing improper motives to either side.

Judicial vacancies and institutional confidence

Recent concerns raised by the BASL regarding judicial vacancies add another dimension to the debate. The BASL has argued that vacancies in the Supreme Court contributed to the retirement of a senior Court of Appeal judge without promotion to the Supreme Court, despite vacancies having existed. It has also raised concerns regarding forthcoming judicial retirements and the need for timely consideration of appointments.

Such matters should not be treated as evidence of the motives behind the proposed amendment. They do, however, illustrate a broader principle.

Judicial independence is shaped not only by the retirement age written into the Constitution. It is also influenced by how vacancies are filled, how promotions are determined, how seniority and merit are assessed, and whether judicial officers and the public believe that institutional decisions are made according to transparent and defensible criteria.

The government has an opportunity to address these concerns constructively.

Prompt appointments based on publicly defensible principles would strengthen confidence in the judiciary irrespective of the eventual outcome of the constitutional debate.

Seniority, merit and transparent criteria

The controversy also exposes a longstanding question concerning judicial appointments.

Seniority has traditionally carried considerable weight in judicial advancement. Yet seniority alone need not be the sole measure of merit. Conversely, replacing established practices with undefined assessments of “merit” could create another institutional problem.

If governments or appointing authorities can determine which judges are sufficiently meritorious without clear and objective criteria, uncertainty itself may become a source of institutional anxiety.

Sri Lanka would therefore benefit from clearer, objective and defensible standards governing judicial appointments and promotions.

Such standards would protect judges as well as appointing authorities. They would reduce opportunities for favouritism, strengthen institutional confidence and make it harder for political actors to portray every appointment as politically motivated.

Institutional rules are stronger safeguards than assurances of good intentions.

The State is larger than any government

One principle deserves particular emphasis: a government is not the State.

Governments are temporary. The constitutional State is continuing. Political parties change, parliamentary majorities change and political priorities change. The judiciary, however, must continue to function independently of whoever occupies the government benches.

The judiciary is neither a government institution in the political sense nor an Opposition institution. It is an institution of the State whose legitimacy depends upon its independence from both.

For that reason, governments should exercise particular caution when proposing constitutional changes affecting the judiciary, even where the policy objectives are legitimate.

The stronger a government is politically, the greater its responsibility to demonstrate institutional restraint.

That is not political weakness. It is constitutional maturity.

Public confidence is a constitutional asset

The most consequential issue may ultimately be neither retirement age nor judicial capacity, but public confidence.

Courts do not possess political power in the conventional sense. Their authority rests substantially on the acceptance of their decisions as legitimate.

Citizens will sometimes disagree with judicial decisions. But where the judiciary is perceived as independent, even unpopular decisions can command respect. If judicial institutions are perceived as being shaped by political convenience, even legally sound decisions may become vulnerable to suspicion.

Constitutional reform affecting judicial tenure must therefore be evaluated not only by its immediate administrative benefits but also by its effect on institutional credibility.

A reform that produces short-term efficiency while weakening confidence in judicial independence could impose a greater long-term cost. Conversely, reform that improves efficiency while preserving independence can strengthen both justice and public trust.

The challenge is not to choose between judicial efficiency and judicial independence. It is to achieve both.

If a referendum arises …

If the constitutional process ultimately requires approval by the people at a referendum, the debate should rise above the conventional government versus Opposition contest.

The electorate should be given a clear constitutional question and sufficient information to assess it.

Citizens should understand what problem the amendment seeks to address, why the proposed mechanism is considered necessary, what institutional risks have been identified, what safeguards exist and whether alternative measures could achieve the same objectives.

A constitutional referendum deserves a higher standard of public discussion than an ordinary election campaign.

The people would not merely be choosing a political side. They would be deciding the institutional framework within which political power and judicial authority operate.

Beyond who wins

The most important question arising from the proposed Twenty-Second Amendment is therefore not simply whether the government succeeds or whether the Opposition and BASL prevail.

Nor is it ultimately whether judicial retirement ages become 67 and 65 or remain unchanged.

Those are immediate constitutional questions. The deeper issue is what Sri Lanka learns from the controversy.

If the government seeks to modernise and strengthen the justice system, that objective deserves serious consideration. If the BASL and others warn that particular reforms may affect judicial independence, those concerns deserve equally serious examination.

Neither side strengthens the country by assuming that the other is acting in bad faith.

The constitutional system is strongest when legitimate disagreements are resolved through institutions rather than political pressure.

Whatever the eventual constitutional outcome, Sri Lanka will still face the underlying challenges of judicial vacancies, case delays, institutional capacity, judicial appointments and public confidence. Those problems will not disappear with a judicial determination, nor should the national conversation end there.

Sri Lanka should instead seek a broader consensus around a fundamental proposition:

Judicial reform and judicial independence are not competing objectives.

The real challenge is to pursue reform in a manner that strengthens the judiciary without placing its independence under suspicion.

That requires sound legislation, transparent appointments, adequate resources, efficient court administration, responsible political conduct and safeguards capable of surviving changes of government.

The present controversy will eventually pass. Political arguments surrounding it will fade.

But constitutional arrangements can endure for decades.

That is why Sri Lanka must look beyond the immediate political contest.

The ultimate test is not who wins today’s constitutional argument. It is whether, when the political moment has passed, Sri Lanka has a judiciary that is more efficient, more accessible and more trusted—while remaining sufficiently independent to hold every government, including future governments, within the boundaries of the Constitution.

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Farewell to a Fashion Icon

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Chula was very fond of The Island newspaper and kept in touch with us on a regular basis (L) / Chula: Sent us this photo for Glam Scene, just a couple of weeks ago (R)

Sri Lanka’s fashion world lost one of its brightest stars Monday morning – veteran model, actress, and elite pageant trainer Chulpadmendra “Chula” Kumarapathirana.

Her sudden demise has certainly come as a shock to many.

Chula had just completed a major event on Sunday (30th August), and was no more in the land of the living the following day (31st August).

Born in Colombo, she was an old girl of Buddhist Ladies’ College and later studied at the National Institute of Business Management, and has many awesome achievements to her credit.

In 2006, she won the “Miss Tourism Model of the World Press Award” in Tanzania.

She entered the entertainment industry, as an actress, and gained popularity through the teledrama “Wahinna Muthu Wessak.”

Chulpadmendra has been on TV, and many Sri Lankan hip-hop music videos, including “Hanthane” and “Heena Hirimal”, and has had several other minor acting jobs since then.

She hosted the Derana Miss Sri Lanka for Miss World 2008 and even participated in the reality TV show Sirasa Dancing Star.

For over 25 years Chula was active in local and international fashion and founded the Chulpadmendra Catwalk Studio to train young newcomers

She trained hundreds of models for runway, photoshoots, auditions, and international pageants.

She was known as a fierce mentor who believed in “not just learning to walk, but learning to command the runway”.

Many young models called graduating from her studio their “happiest moment.”

Chulpadmendra “Chula” Kumarapathirana: Many young models called graduating
from her studio their “happiest moment.” (L)/ Won the “Miss Tourism Model of the World Press Award” in Tanzania (R)

Chula was very fond of The Island newspaper and kept in touch with us on a regular basis.

Her last message to The Island was a ‘thank you’ note for the article ‘New benchmark in pageant industry’:

“Thank you, Ivan, for writing such a beautiful article about me. Your unwavering support, encouragement, and belief in me throughout my career mean more than words can express. I am truly grateful for your kindness and generosity.

“My heartfelt thanks also go to The Island newspaper for featuring the article. It is a great honour, and I sincerely appreciate the recognition and support.

“Thank you once again.”

In fact, just a couple weeks ago, she sent a photo of herself for our Glam Scene and that picture I publish today, as part of this story.

May she rest in peace. Our deepest condolences to her family, students, and all who loved her.

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