Business
Right of Response to Caritas Sri Lanka
We refer to the published studies by Caritas Sri Lanka titled Research Study on the Culture and Identity of the Plantation Community in Sri Lanka and Right to Education of the Children of the Plantation Community.
At the outset, we express our appreciation to the Catholic Bishops Conference and Caritas Sri Lanka for their interest and recommendations aimed at creating an enabling environment for preserving and promoting the culture and identity of plantation communities. We recognize that the recommendations in these publications encompass a wide range of areas, including inclusive development policies, education and awareness programs, cultural preservation funding, legal protection, economic empowerment, and the promotion of culture-based tourism. While we respect the commitment of Caritas to these communities, we believe the data used in their reports should be revisited to reflect today’s on-the-ground realities. Our goal is to offer updated information so that all stakeholders can align on how best to support plantation communities most effectively today.
In that regard, we note that many of the statistics cited in the report are based on research that dates as far back as 2003/2004, failing to account for the significant progress and developments made in plantation communities since then. As the Planters’ Association of Ceylon, which represents the interests of Regional Plantation Companies (RPCs) in whose estates reside an estimated 42% of Malaiyaha Tamil community, we are compelled to clarify these points and provide a more accurate representation of the current state of these communities. We also acknowledge that further investment and effort is required from all stakeholders, including the Government in order to drive meaningful progress on the several issues. We caution however, that placing the responsibility solely with plantation companies who are only capable of operating within the constraints of employer-employee relationships fails to hold all other stakeholders accountable for their role and capacity to drive broader progress.
Accordingly, we believe It is important at the outset to address the continuous references of this community as Indian-origin Tamils (IOT). While historically, many have referred to this group as Indian-origin Tamils (IOT), today, they are recognized as Sri Lankan citizens with full political and civic rights. As proud Sri Lankans, it’s vital to celebrate the rich diversity within our nation. The Tamil community, with roots in India, is an essential part of our shared heritage. While the term IOT does hold historical and cultural significance, using it exclusively can overshadow the strides this community has made over many generations to achieve these rights, and establish their own identity as Sri Lankans. The term IOT therefore perpetuates an outdated and exclusionary narrative that risks undermining their rightful inclusion within Sri Lankan society. Now commonly referred to as the Malaiyaha community, they are an integral part of the nation’s socio-economic fabric. With a population of approximately 960,000—20% of whom form a vital, actively contributing workforce – which is increasingly transcending the plantation industry.
Education sector challenges
The assertion that education within plantation communities remains chronically underfunded is misleading. With the nationalization of schools, they were incorporated into the mainstream education system. Over time, the education system has undergone significant advancements, supported by consistent government initiatives. This progress underscores the evolution of schooling facilities and the broader education framework, which now aligns with the national mainstream education standards.Since 1977, when the government assumed responsibility for these schools, there has been a steady expansion, and today 863 schools operate within plantation areas.
In parallel, the Regional Plantation Companies (RPCs) with the support of Plantation Human Development Trust (PHDT), have collaborated—often with donor assistance—to establish 1,200 Early Childhood Development Centers (CDCs). These CDCs, staffed by trained professionals, provide not only foundational education for young children but also critical nutritional and developmental support. Through scholarship programs, RPCs have within the means available to them further facilitated opportunities for higher education, with over 100 students from plantation communities entering Government universities each year. With greater support, such positive initiatives could be drastically amplified. While we acknowledge that resource constraints continue to pose challenges, we also wish to give equal and fair emphasis to the tangible gains already achieved. By building on these successes, we aim to ensure that schools serving plantation communities are strengthened, rather than diminished, as Sri Lanka collectively addresses its nationwide education funding needs.
Similarly, health outcomes within RPC-managed plantations have seen vast improvements due to targeted interventions led by RPCs with the support of PHDT. The infant mortality rate, which the publications erroneously state as 60.6%, is now 9.07% under RPC-led estates, aligning closely with national averages. Undernutrition, another cited issue, has also received significant attention, with several targeted programmes having been launched aimed at ensuring comprehensive maternal and child health support to communities within the estates. As a result of these practices, current prevalence of moderate and severe undernutrition stands at 15.57% and 3.9%, respectively, a significant improvement over previous decades.
The studies also portray the housing situation within plantation estates inaccurately. The line rooms, which were historically used for worker accommodation, have been systematically upgraded or replaced under RPC-led initiatives. Over 140,000 housing units have been reroofed, ensuring improved living conditions. In addition, more than 60,000 families now reside in individual/improved housing units with modern facilities. Furthermore, 230,000 individual latrines have been constructed, significantly enhancing sanitation and hygiene within these communities. These ongoing development programs have transformed living conditions, ensuring privacy, sanitation, and dignity for plantation workers and their families. We also note that cultural and identity-related challenges faced by plantation communities are not ignored. RPCs have actively worked to preserve cultural practices while facilitating integration into broader Sri Lankan society. Programs focusing on community engagement, cultural events, and skill development have helped foster a sense of belonging and empowerment. The work carried out by the RPCs with the support of PHDT, trade unions, and government authorities, has been instrumental in driving these advancements. Through this tripartite collaboration, RPCs have achieved measurable progress in improving the quality of life across all facets, including education, healthcare, housing, and economic opportunities.
The Planters’ Association wishes to clarify that the report does not capture the true nature of plantation communities within RPC-managed estates, unfairly painting a negative picture of the entire sector without considering the substantial improvements led by RPCs. This demarcation is necessary to ensure a fair and accurate understanding of the progress made and the ongoing commitment to the welfare of plantation communities.
(The Planters’ Association of Ceylon)
Business
Industry and Entrepreneurship Development Minister Handunneththi’s visit to Lumala highlights key industrial concerns
With the aim of assesing the current challenges faced by local industrialists and explore avenues for government support, Minister of Industry and Entrepreneurship Development Hon. Sunil Handunneththi visited City Cycle Industries Manufacturing (Pvt.) Ltd., widely known as Lumala, on March 24 at its factory in Panadura.
During the visit, Minister Handunneththi engaged with senior officials and employees to understand their concerns and operational difficulties. In a statement shared on social media, the Minister acknowledged the pressing challenges affecting Sri Lanka’s manufacturing sector and emphasized the government’s commitment to providing swift and effective solutions.
Minister Handunneththi further reiterated the government’s intent to position local manufacturers as key stakeholders in Sri Lanka’s economy by addressing regulatory hurdles, market imbalances, and supply chain constraints.
The visit comes amid growing concerns from Lumala employees and management regarding the state of Sri Lanka’s bicycle manufacturing industry, in the backdrop of facing significant challenges, including an influx of imported bicycles and components that circumvent regulatory checks. In addition, the high taxes on raw materials used in local manufacturing has further exacerbated production costs, making it difficult for domestic manufacturers to remain competitive.
Earlier this year, Lumala employees called for urgent government intervention to address these challenges, warning that ongoing financial strain could lead to further shutdowns of critical production units, job losses, and setbacks to the broader industrial ecosystem. With a local value addition of 50-70 percent verified by the Ministry, its workforce remains hopeful that government action will help achieve an ethical manufacturing industry.
Lumala, a household name in Sri Lanka’s bicycle industry, has been a key player in sustainable mobility solutions for over 35 years. The company was recently honored with the Best National Industry Brand award under the Large-Scale Other Industry Sector category at the National Industry Brand Excellence Awards 2024.
With a production capacity of 2,000 bicycles per day and a workforce of 200, Lumala continues to cater to both domestic and international markets, producing a diverse range of bicycles, electric bikes and light electric vehicles. In line with Sri Lanka’s goal to expand forest cover to 32 percent by 2030 and cut GHG emissions by 14.5%, Lumala is actively contributing to this mission—both as a company and through its diverse range of products.
As Sri Lanka works towards strengthening its local manufacturing sector, Minister Handunneththi’s visit signals a crucial step toward addressing industrial concerns and reinforcing government support for sustainable and competitive domestic production.
Sri Lanka’s country rating was upgraded from ‘Restricted Default’ to ‘CCC’ following the successful exchange for the new International Sovreign Bonds (SL ISBs) during December 2024. The three types (03) of exciting new sovereign bonds have restored foreign investor confidence.
The Central Bank of Sri Lanka (CBSL) has performed a remarkable role in guiding the economy out of default status and restored economic stability, and gained Sri Lanka a non-default Country Rating of ‘CCC’. Among the key achievements of CBSL, have been to reduce treasury interest rates under 9% and stabilize the currency while rebuilding foreign reserves to $ 6Bn.
SL offers four Macro Linked Bonds (MLBs) linked to GDP growth, a Governance Linked Bond (GLB) and a short term, Fixed Coupon Bond for unpaid Past Due Interest (PDI). The MLBs offer variable returns depending on SL’s GDP growth from 2024 to 2027, (e.g. haircuts can vary between 16% to 39%). The GLB interest can vary depending on meeting 15.3% and 15.4% of Total Revenue/ GDP thresholds in 2026 and 2027 respectively. The PDI bond offers a fixed coupon of 4% until 2028 and trades at around $94.
This combination of unique, variable returns offers global investors an exciting opportunity to capitalize on SL’s economic revival and US interest rate movements. Sri Lanka’s economic resurgence in 2024 was promising, with a 5% GDP growth rate. With improving investor confidence, SL ISB daily turnover now exceeds $10mn.
The Ceylon Dollar Bond Fund (CDBF) is the only USD Sovereign Bond Fund that is exclusively invested in SL ISBs with Deutsche Bank acting as the Trustee and Custodian Bank. The Fund reported returns of 53% in 2023 and 39% in 2024.
We invite foreign investors to enter CDBF while Sri Lanka is rated at ‘CCC’ and consider realizing their investment upon SL reaching a Country Rating of ‘B- ‘. Other advantages of CDBF are, the ability to withdraw anytime and being tax exempted.
Ceylon Asset Management (CAM), the Fund Manager, has commenced an advertising campaign to promote the CDBF to the Sri Lankan Diaspora, South Asian, Middle Eastern and Australian Investors. CAM is an Associate Company of Sri Lanka Insurance Corporation (SLIC) and licensed under the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021.
Meanwhile, the Ceylon Financial Sector Fund managed by CAM emerged as the top performing rupee fund in Sri Lanka during 2024, with a return of 64%. Investors can find out more on www.ceylonassetmanagement.com or write to us on info@ceylonam.com.
Past performance is not an indicator of the future performance. Investors are advised to read and understand the contents of the KIID on www.ceylonam.com before investing. Among others investors shall consider the fees and charges involved.(CAM)
CSE plunged at open, falling for the second consecutive day yesterday, down over 300 points in mid- morning trade.US President Donald Trump has imposed a 44 percent tax on Sri Lanka’s exports in an executive order which he claimed, spelt out discounted reciprocal rates for about half the taxes and barriers imposed by the island on America.
As a result both indices showed a downward trend. The All Share Price Index dropped 300 points, or 2.32 percent, to 15,294.94, while the S&P SL20 dropped 101 points, or 2.71 percent, to 4,517.37.
Turnover stood at Rs 3.1 billion with six crossings. Those crossings were reported in Sampath Bank which crossed 1.6 million shares to the tune of Rs 181 million and its shares traded at 109, JKH 4.1 million shares crossed to the tune of 80.5 million and its shares sold at Rs 19.5.
Hemas Holdings 400,000 shares crossed for Rs 45.6 million; its shares traded at Rs 114, CTC 25000 shares crossed to the tune of Rs 32.2 million; its shares traded at Rs 1330, Commercial Bank 200,000 shares crossed for 27 million; its shares traded at Rs 135 and TJ Lanka 157,000 shares crossed for Rs 20 million; its shares traded at Rs 46.
In the retail market top six companies that have mainly contributed to the turnover were; Sampath Bank Rs 296 million (2.9 million shares traded), JKH Rs 220 million (11.2 million shares traded), Haylays Rs 195 million (142,000 shares traded), HNB Rs 151 million (519,000 shares traded), Commercial Bank Rs 138 million (1 million shares traded) and Central Finance Rs 129 million (735,000 shares traded). During the day 218 million shares volumes changed hands in 22000 transactions.
It is said the banking sector was the main contributor to the turnover, especially Sampath Bank, while manufacturing sector, especially JKH, was the second largest contributor.
Yesterday, the rupee opened at Rs 296.75/90 to the US dollar in the spot market, stronger from Rs 296.90/297.20 on the previous day, dealers said, while bond yields were up.
A bond maturing on 15.10.2028 was quoted at 10.35/40 percent, up from 10.25/30 percent.
A bond maturing on 15.09.2029 was quoted at 10.50/60 percent, up from 10.45/55 percent.
A bond maturing on 15.10.2030 was quoted at 10.60/70 percent, up from 10.30/65 percent.
By Hiran H Senewiratne
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