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Sri Lanka and Bangladesh shouldn’t compete for the same objective: Bangladesh HC

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President NCCSL, Nandika Buddhipala presents a token of appreciation to Bangladesh High Commissioner Tareq Md Ariful Islam at the bilateral trade and investment forum held at the National Chamber of Commerce recently.

*  Political stability has mainly driven the growth trajectory in Bangladesh

*  Bangladesh is poised to capture a bigger share of the global apparel market

*  More Sri Lankan businesses should tap the growth centre next door

*  Draws attention to a great shortcoming in connectivity between the two countries

by Sanath Nanayakkare

Sri Lanka and Bangladesh can gain more from bilateral trade cooperation by strategically utilizing the two countries’ respective comparative advantages and strengths than from competing with each other for the same objective, Bangladesh High Commissioner in Sri Lanka, Tareq Md Ariful Islam said in Colombo recently.

“All the more so because the two countries have a similar product range which has led to a low bilateral trade volume of US$ 200-300 million,” he pointed out.

The High Commissioner made these remarks while addressing a bilateral trade and investment forum at the auditorium of the National Chamber of Commerce (NCCSL) where he was the special guest speaker.

“The similarity in our product range is the main reason behind low trade volume. However, there is a lot of scope for improvement in our trade ties. What we need to do is to couple our respective, comparative advantages and build resilient cooperation to be more competitive in the global market,” he observed.

“The two countries have just completed 50-years of diplomatic relationship.

It has been a long, enduring relationship based on friendship, goodwill and good neighborliness. Over these 50 years, we have enjoyed very strong bonds of solidarity and friendship. Our business ties are also very strong. Now we need to capitalize on our excellent political relations to make the business relationship stronger to make it more tangible, so that it can touch the lives of our people and also help Sri Lanka’s endeavors towards its economic recovery,” he said.

Presenting a comprehensive picture under the theme of the discussion, the High Commissioner went on to say:

“Sri Lankan business community would like to know what opportunities are available in Bangladesh for trade and investment, its government policies, macroeconomic data and how the Bangladesh High Commission in Sri Lanka can help them in this regard.”

“According to my view, preferential trade agreements (PTAs) or free trade agreements (FTAs) shouldn’t be seen through the lens of revenue earning or revenue loss. It means much more than that. While revenue loss and revenue gains are definitely important, there are many other benefits that PTAs and FTAs can bring to our economies; for example, creation of employment and enhancement of our respective competitiveness in the global market. So we should take a holistic approach to FTAs and PTAs. If we can judiciously select the respective tariff lines, then there is every possibility that a PTA or FTA between Bangladesh and Sri Lanka can be successful. We are very encouraged to see that the current government has put a lot of emphasis on PTAs and FTAs with bilateral partners. We started our negotiation late last year. So far we have made good progress, but we still have to do more.”

“Bangladesh initially received substantial investment from Sri Lanka; mostly in readymade garments sector and now Sri Lankan companies have extended into health, power, logistics, financial sector etc. Now they have diversified into investment banking, wealth management, paint, packaging, FMCG etc. This is an indication about the growing, diversified market in Bangladesh. Most of the conglomerates in Sri Lanka have very successful operations in Bangladesh and more Sri Lankan businesses are showing interest in doing business in Bangladesh.”

“Bangladesh has had consistently high economic growth. The average GDP growth in the last 30 years is 6.6% which is among the best in the world. In 2019, it reached 8.15% right before the pandemic. During the pandemic, Bangladesh had 5.4% growth which was among the highest in the world during Covid time. In financial year 2020-21 our growth was 6.9% according to the IMF. In 2021, it went up to 7.2%. The focus for 2022-23 according to the IMF is 6%, but we are hopeful of achieving higher growth. Our foreign debt to GDP is 11.86% and local debt to GDP is 31.42% which is the lowest in the region. Bangladesh is a USD 400 billion plus economy – 41 largest in terms of nominal GDP and 32 largest in terms of purchasing power parity. Per capita income has soared to USD 2,824. Foreign exchange reserves are now USD 34 billion. It was USD 44 billion last year and the decline was due to the rise in the prices of essential commodities in the global market.”

“We have sought an IMF package. We got USD 4.5 billion. This was not a bailout. It was to deal with balance of payment issues. Bangladesh’s Inflation is at a single digit of 8.9%. Remittance in 2019-2020 was USD 18 billion and even during the pandemic, it went up to USD 24 billion. Our exports crossed the USD 50 billion mark last year for the first time.”

“There is a winning combination of conditions for any potential investor or business house to do business in Bangladesh. The main driving force has been our political stability which has mainly helped the growth trajectory in Bangladesh. Ours is a domestic market with 165 million people and out of that, 37 million is the growing middle class whose per capita income is between USD 5,000 and 7,000. On top of that two million are joining the middle class each year.”

“Because Bangladesh has handled geo-politics well, it has become a sought-after destination for many regional business houses to relocate their establishments. We have special economic zones dedicated for Japan, India, China and South Korea. This shows that investment is safe and profitable in Bangladesh, therefore, Sri Lanka can further tap this growth centre next door.”

“Bangladesh is poised to capture a bigger share of the global apparel market. Sri Lanka can also contribute in that direction. Apparel industry of the two countries can utilize the comparative advantages in the production process, value addition in re-exports etc. We can utilize Sri Lankan expertise in this sector. Sri Lankans have helped take our readymade garments sector to where it’s today. Our apparel industry continues to benefit from your human resources.”

“Through cooperation, we can enhance our global competitiveness in our IT products. Manufacturing of pharmaceutical products and medical equipment also has more scope for investment.”

“About 700,000 Bangladeshis spend USD 3.5 million every year for overseas medical treatments. That’s a big market Sri Lanka can tap. Electronic components, agricultural food processing, leather and footwear, medical insurance, steel and cement, renewable energy, FMCG, retail operations, supply chain and logistics, financial sector are other sectors with opportunities for investment, supported by proactive policies of the Bangladesh government.”

“Although both countries are into tea, your global tea brands can partner with us in making fine blended tea, “he said.

The High Commissioner chose this forum to draw attention to a great shortcoming in connectivity between the two countries by sea and air which leads to the disadvantage of Sri Lanka tourism.

“Bangladeshis with disposable income travel to all regional destinations, but they are not coming to Sri Lanka because of the poor connectivity. If connectivity and affordability of air fares can be taken care of, Sri Lanka tourism can benefit from it,” he said.

In 2020, Bangladesh imported $153 million worth of goods from Sri Lanka while exports from Bangladesh to Sri Lanka stood at $ 48 million.



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Beyond arrivals: Can tourism and hospitality power Sri Lanka’s next growth phase?

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The Australian High Commission in Sri Lanka recently hosted the latest edition of its ConnectED Thought Leadership Series at the Australian High Commissioner’s Residence in Colombo, bringing together senior leaders from Sri Lanka’s tourism, hospitality, travel, events, education and related sectors.

The discussion, themed “Beyond Arrivals: Can Tourism and Hospitality Power Sri Lanka’s Next Growth Phase?”, focused on the role of tourism and hospitality beyond visitor arrival numbers, examining how the sector could contribute to Sri Lanka’s broader economic development.

The distinguished panel comprised Shiromal Cooray, Chairman and Managing Director of Jetwing Travels; Angeline Ondaatje, Chairperson of Tangerine Beach Hotels PLC, Royal Palms Beach Hotels PLC and Tangerine Tours; and Grant Dreher, Chief Executive Officer of William Angliss Institute Australia.

The discussion was moderated by Wayne Crosbie, Director – International and Business Development, William Angliss Institute Australia, who facilitated the conversation around the evolving needs of the tourism and hospitality industry and the importance of connecting education, skills development and workforce readiness with industry demand.

Adding a practical and experiential dimension to the evening, students from the Colombo Academy of Hospitality Management (CAHM) played an active role in delivering the cocktail reception for the distinguished guests.

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SL’s ‘Global Destination Marketing and Communication Campaign’ gets into top gear

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Tourists taking in Sri Lanka’s beauty

A high-level discussion on the implementation of Sri Lanka’s Global Destination Marketing and Communication Campaign, supported by the World Bank, was held at the Ministry of Foreign Affairs, Foreign Employment and Tourism. The initiative marks a significant step towards strengthening Sri Lanka’s position as a competitive and attractive destination in the global tourism marketplace.

The meeting focused on the importance of adopting a long-term, data-driven approach to destination marketing, underpinned by comprehensive analysis of tourism demand and supply trends, visitor behaviour, destination branding, and international marketing strategies. Discussions also highlighted the need for a transparent procurement process and institutional capacity-building to ensure the successful implementation and sustainability of the campaign.

Participants welcomed the technical expertise and strategic guidance to be provided by MTI Consulting and Skift Inc./JD, whose support will contribute to the development and execution of a globally competitive destination marketing programme. Through strong collaboration between public and private sector stakeholders, the initiative seeks to establish a sustainable roadmap to guide Sri Lanka’s tourism promotion efforts and enhance the industry’s competitiveness in key international markets.

The campaign is expected to play a vital role in strengthening Sri Lanka’s tourism sector, supporting increased visitor arrivals, generating economic opportunities, and contributing to broader national economic growth.

The discussion was attended by Aruni Ranaraja, Secretary to the Ministry of Foreign Affairs, Foreign Employment and Tourism; Chairpersons and Chairmen of tourism institutions under the Ministry; representatives of SLAITO, TAASL, the Tourism Advisory Committee, the World Bank, MTI Consulting, and Skift Inc./JD; as well as H.P. Somathilaka, Director General of National Planning.

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Labour shortages are pushing Plantation Companies towards machines, data and a different kind of worker

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Sri Lanka’s plantation sector is entering a new phase of transformation, as technology and innovation reshape how estates operate, manage resources and sustain productivity. Across the country’s tea estates and other plantations, machines are increasingly complementing skilled workers in tasks once done almost entirely by hand, while software and data bring new precision to decisions traditionally guided by experience.

Automated harvesters, pruning machines and drones are being deployed alongside GIS mapping, digital weighing systems and enterprise software. Though the technologies vary, they point to a common shift: plantations are finding smarter ways to meet rising demands with a changing workforce.

Mechanisation, however, is not without challenges. Sloping terrain, fragmented fields and crop variability limit where machinery can be effectively deployed. Still, as operating costs rise and labour availability tightens, the ability to combine human expertise with technology is becoming essential to sustaining productivity, competitiveness and the long-term viability of the industry.

Addressing the labour shortage

Sri Lanka’s plantation companies face a labour market that has changed from the one on which the industry was built. Migration, demographic changes and attraction from other sectors have made it increasingly difficult to retain workers for plantation work.

That is why mechanization is spreading beyond the most obvious applications. At Bogawantalawa Tea Estates PLC, machinery is being used for land preparation, pruning, weeding, harvesting, and agrochemical application. Selective machine harvesting and mechanical pruning have been introduced in tea, while mechanized and semi-mechanized methods are being extended to other crops.

Agarapatana Plantations PLC has taken a similar approach. Fuel-powered and battery-operated harvesters are being used in the field, while backhoes assist with uprooting and levelling new clearings. Drones are being deployed for foliar spraying. In factories, automation and energy efficient machineries are being introduced where production volumes justify the investment.

The changing face of plantation technology

Beyond mechanisation, plantations are steadily evolving into data-driven businesses, with RPC’s increasingly adopting technologies that are reshaping day-to-day operations. Agarapatana Plantations is rolling out automated green-leaf weighing systems with facial recognition and planning fertigation-based irrigation. Ten factories already operate on solar power, with six of them being carbon neutral.

Likewise, Elpitiya Plantations PLC has introduced Ballotronix tea-leaf readers to assess leaf composition, supported by iHarvest and Microsoft Dynamics 365 Business Central, giving managers real-time visibility across thousands of hectares.

Talawakelle Tea Estates PLC has similarly pursued transformation since 1992, introducing hot-water boilers across all factories from 2008, electronic weighing with real time data collection since 2015, as well as tablets, computers and a new payroll system for employees. Rooftop solar along with three in-house hydro power plants located in Palmerston, Radella and Somerset estates provide renewable energy. State of the art, modern colour separators have been provided to its Low Grown factories. Since 2025, drones are been used for chemical/ foliar spraying. These developments highlight how the plantation sector has steadily embraced technology for greater efficiency and sustainability.

The technological shift does not stop at the edge of the field as factories are becoming increasingly automated, giving special emphasis to energy efficient equipment. At Elpitiya, more than 80% of their factories are mechanized with state of the art machineries, with the intention to raise both capacity and efficiency.

On the other hand, Malwatte Valley Plantations PLC illustrates another possibility. After expanding its cinnamon cultivation, the company encountered a shortage of skilled peelers. Its engineers responded by developing and patenting cinnamon-peeling machinery.

That is more than a labour-saving exercise. It shows how a constraint can encourage technological innovation- and potentially allow an industry to expand beyond the limits imposed by the supply of specialised labour.

The company is also investing in automated factory systems and machinery for “matcha” production. Technology, in this case, is being used not merely to reduce costs but to strengthen value addition to products.

Machines will not make workers obsolete

Workers are being trained to use harvesters, pruning equipment and spraying machinery, while new roles are emerging around upkeep, data collection and digital reporting.

Horana Plantations PLC, for instance, has introduced machine plucking to address labour shortages. The company reports improvement in yields, consistency and labour productivity, while technology-driven harvesting has also been used to make plantation work more attractive to younger workers.

“Technology has become a prerequisite requirement for the plantation sector as we deal with labour shortages and the need to improve productivity,” Secretary General of the Planters’ Association of Ceylon, Lalith Obeyesekere stated. He noted that priority should be given to technologies suited to Sri Lankan conditions, supported by training and enabling workers to use them effectively. “That is a more useful way of thinking about mechanisation than simply counting the jobs a machine might replace”, Obeyesekere went on to note. He is confident that these changes will raise the productivity and profitability in the sector.

The next harvest

The direction of travel is becoming clearer. Precision agriculture, digital crop forecasting, automated weather monitoring, smart irrigation, digital traceability and further mechanisation are likely to become more common.

That does not mean the end of the plantation worker, nor the disappearance of generations of agricultural knowledge. It means that both will increasingly operate alongside technology.

For an industry whose competitiveness has long depended on its ability to extract value from land and labour, the new imperative is simpler: create more avenues, waste less and make each worker- and each hectare- more productive.

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