Business
‘Sri Lanka is a country with great potential’
– Korean Deputy Foreign Minister Lee Sang-Hwa
The ambassador and Deputy Minister of Public Diplomacy of the Republic of Korea Lee Sang-hwa paid an official visit to Sri Lanka from February 20 to the 22nd. Other officials of the delegation included Expert Economist Dr. Song Kyungjin, Director for the Regional Strategy Division Lee Jung ho, First Secretary Ms. Jung Su Young and Second Secretary Ms. Baek Su Jin.
On February 21, the Ministry of Foreign Affairs of the Republic of Korea successfully hosted an expert seminar under the theme of ‘Korea’s Indo-Pacific Strategy and Its Partnership with Sri Lanka’ at the Cinnamon Grand Hotel in Colombo. The Ministry of Foreign Affairs of Korea selected Sri Lanka as the first country to host the overseas seminar on its recently unveiled Indo-Pacific strategy. This meaningful event brought together more than 150 people including high-level officials of the Ministry of Foreign Affairs of ROK and the Sri Lankan government. Among the key representatives of the stakeholders, the officials of the Ministry of Education, the National Institute of Education, academic members of the Global Korea Scholarship Alumni Association, KOICA Fellows in Sri Lanka and Korean language teachers were present to gain insights into the Indo-Pacific strategy of Korea. Especially, many young students from the Kelaniya University also attended the seminar to understand the vision of Korea’s Indo-Pacific Strategy.
Among the high-level dignitaries present, the ambassador and Deputy Minister of Public Diplomacy of the Republic of Korea Lee Sang-hwa, Korean ambassador to Sri Lanka Santhush Woonjin Jeong, Secretary to the Ministry of Education Nihal Ranasinghe, Secretary of the Ministry of Buddhasasana, Religious and Cultural Affairs Somaratne Vidanapathirana, Director-General of the National Institute of Education Dr. Sunil Jayantha Nawaratne, Additional Secretary Educational Quality Development & Education Reforms H.U. Premathilake and Additional Secretary Cultural Promotion T.N. Hettiarachchi were noteworthy.
Delivering the opening remarks at the seminar on ‘Indo-Pacific Strategy and Its Partnership with Sri Lanka,’ the Deputy Minister Lee Sang-hwa stated that Korea has recently unveiled the Indo-Pacific Strategy which is Korea’s first comprehensive regional strategy, under the vision of a Free, Peaceful, and Prosperous Indo-Pacific. To realise this vision, the Korean government has formulated a policy and an implementation plan aligned with the Indo-Pacific strategy for each sub-region, including North Pacific, Southeast Asia & ASEAN, South Asia, Oceania, and the African Coast of the Indian Ocean. The principles of cooperation for the Indo-Pacific strategy are based on Inclusiveness, Trust, and Reciprocity. For this purpose, the Korean government would like to attempt to build a regional order based on norms and rules, strengthen non-proliferation and counter-terrorism efforts, engage in contributive diplomacy through tailored development cooperation, etc. Especially in the region of South Asia, ‘Sri Lanka is a country with great potential,’ the Deputy Minister stated. ‘Korea supports the endeavours of the Sri Lankan government and its people to emerge from the current challenges as a strong and resilient economy. In the framework of Indo-Pacific, the Korean government will pursue reliable and mutually beneficial economic partnerships with countries in South Asia through strengthened economic and development cooperation in such areas as trade, investment and development assistance. The government of Korea has increased the ODA budget by 14% this year and Sri Lanka is one of the key development assistance recipients.’
The seminar featured a presentation by the Director for the Regional Strategy Division Jungho LEE on the Indo-Pacific strategy of ROK and the substantial cooperation Korea hopes to share with Sri Lanka through increased economic and development cooperation. He emphasized that the “strategy focuses on maximizing effects of development cooperation in areas where our strengths and partners’ needs coincide.” The Director for the Regional Strategy Division further agreed on the need for tailored cooperation in the areas of trade, investment and development assistance and discussed the way forward to promote mutual understanding and exchanges under the Indo-Pacific Strategy of Korea.
Economic Expert Dr. Song Kyungjin provided a comprehensive outline of the economic development experience of Korea. In 1962, the GDP per capita of Korea was just USD 106.2. In 2022, the GDP per capita has increased to USD 34,997. While the major export items in 1962 were limited to a few materials, such as, iron ore, tungsten, raw silk and squid, it has now diversified and expanded to export items such as semiconductors, automobiles, petrochemicals and shipbuilding. The transformation of the Korean economy was due to the structural and financial sector reforms, such as, effective regulation and supervision of financial institutions. Dr. Song further explained that the economy of ROK experienced major setbacks such as the Asian Financial Crisis in 1997-98. Significant structural and financial reforms such as the Financial Supervisory Service, the restructuring of large banks, capital account liberalization and the free-floating exchange system led to the recovery of the economy. As an outcome of such painful reforms, the Korean economy was better prepared to weather the 2008 Global Financial Crisis with strong economic fundamentals. She reiterated that the lessons from the two crises such as market-based exchange rate, public sector reform, fiscal consolidation, policy sequencing, political leadership and commitment can be used as references in the development of Sri Lanka. She emphasised that Korea is a bridge between developed and developing countries, and Korea hopes to strengthen more collaborations with Sri Lanka. Especially human resources development and management, education and training, skills development, infrastructure development and agricultural productivity, are prioritised as key areas of cooperation between Korea and Sri Lanka.
Korean ODA representatives, the Country Director of KOTRA Son Joo Hong and the Country Director of KOICA Ms. Kim Myung Jin also participated in the expert seminar to share first-hand experiences in the development of Sri Lanka.
The event also featured a traditional Kandyan dance performance and a dynamic Taekwondo performance that captured the attention of the audience. The seminar was conducive to building an informative dialogue on the Indo-pacific strategy of the Republic of Korea and the future-oriented cooperation between Korea and Sri Lanka. (Embassy of the Republic of Korea)
By Ifham Nizam
National Transmission Network Service Provider (Pvt) Ltd. (NTNSP), has secured third place in Sri Lanka’s fiercely contested 160 MW/640 MWh Battery Energy Storage System (BESS) tender, beating a number of established private-sector energy players in a major competitive procurement exercise just six months after the restructuring of the Ceylon Electricity Board (CEB).
The result marks a significant early indication that a newly restructured CEB successor company can compete on a commercial footing with established players in the rapidly expanding energy market, Senior Engineer Pubudhu Niroshan told The Island Financial Review.
More significantly, Niroshan said NTNSP’s entry into the tender helped intensify competition and contributed to a roughly 10% reduction in the lowest bid compared with the previous 160 MW/640 MWh BESS procurement, potentially delivering a more favourable outcome for electricity consumers.
“Entering such a highly competitive bidding process within just six months of restructuring and emerging third is by no means an easy task, Niroshan said.
He said the achievement had to be viewed in the context of the calibre and number of competitors involved in the process, adding that NTNSP had demonstrated that a successor company emerging from the CEB restructuring could step into a competitive commercial environment and hold its own against established businesses.
The significance of NTNSP’s participation, however, extended beyond its third-place ranking.
According to Niroshan, the company’s decision to enter the BESS procurement created an additional layer of competition, forcing other bidders to sharpen their commercial offers.
‘The first and second-ranked bidders had NTNSP as another competitor. That itself created additional competitive pressure, he said.
The BESS procurement involved a total capacity of 160 MW/640 MWh, with the programme divided into individual projects.
The procurement was designed to bring private and other eligible project proponents into the development and operation of battery storage facilities, providing an important mechanism for integrating renewable energy and strengthening the electricity system.
The outcome, he said, was particularly important for electricity consumers because greater competition in procurement could ultimately translate into lower costs for the power system.
‘Once you have several serious players competing, offering a fair and competitive price becomes essential. That is ultimately good for the consumer, he said.
Niroshan also referred to concerns previously raised by NTNSP before the Public Utilities Commission of Sri Lanka (PUCSL) regarding prices submitted for BESS projects under the Feed-in Tariff (FiT) mechanism.
He said subsequent market developments had provided support for the view that some of the prices submitted under the FiT mechanism were comparatively high.
For Niroshan, the experience also demonstrated why competition must remain at the heart of the restructuring of the electricity sector.
Serendib Flour Mills continued its longstanding commitment to rural communities through the fifth edition of Serendib Uththama Dalada, more than 100 elderly mothers and fathers from remote farming communities to experience the sacred Sri Dalada Perahera in Kandy.
Held on 26 August 2026, the initiative brought together elderly parents from Mahalakotuwa, Elahera and Attanakadawala, many of whom have spent a lifetime engaged in agriculture and contributing towards sustaining communities across the country. For these elders, the initiative offered an opportunity to undertake a deeply meaningful spiritual journey and witness one of Sri Lanka’s most revered religious and cultural traditions.
Conducted under the campaign thought, “Nourishing the hearts of elderly parents with spiritual merits, who once nourished a generation,” Serendib Uththama Dalada recognises the lifelong contribution and sacrifices of farming mothers and fathers while creating an experience that may otherwise remain beyond their reach.
Serendib Flour Mills facilitated the entire journey, providing safe and comfortable return transportation to Kandy aboard three dedicated buses. Special arrangements were also made to enable the participants to worship at the Sri Dalada Maligawa, followed by reserved seating at a specially erected VIP stand, allowing them to comfortably witness the grandeur of the Dalada Perahera.
Siyapatha Finance PLC, the largest fully-owned finance company of the Sampath Bank Group, delivered an exceptional financial performance for the six months ended 30 June 2026, reflecting the Company’s continued strategic growth initiatives, resilient asset quality, and unwavering commitment to sustainable value creation.
The Company recorded a profit after tax (PAT) of Rs. 1,007 million, a robust 43 percent increase from Rs. 706 million in the corresponding period of 2025, while profit before taxes (PBT) grew 38 percent to Rs. 2,334 million from Rs. 1,689 million, demonstrating sustained market and customer confidence in the Company’s core operations.
“Our performance in the first half of 2026 is a clear reflection of Siyapatha Finance’s strategic foresight and our unwavering commitment to sustainable growth,” said Siyapatha Finance Chief Executive Officer Mathisha Hewawitharana. “Surpassing the Rs. 104 billion mark in total assets while significantly improving our asset quality underscores the strength of our core operations and the deep trust our customers place in us. As we navigate the evolving macroeconomic landscape, we remain focused on prudent risk management and delivering enhanced value to our stakeholders.”
The Company’s core business operations continued to yield strong returns, with total interest income growing to Rs. 7,719 million from Rs. 5,272 million a year earlier, driving net interest income up to Rs. 3,487 million from Rs. 2,629 million, signifying the Company’s efficient management of assets and liabilities. Other income strengthened to Rs. 1,054 million from Rs. 826 million, reinforcing the effectiveness of the Company’s revenue diversification strategy. The cost-to-income ratio improved to 49 percent from 54 percent, a testament to the Company’s continued focus on operational efficiency and process optimization.
Asset quality strengthened markedly during the period, underscoring the success of Siyapatha Finance’s prudent credit risk management and proactive recovery initiatives. The gross stage 3 loans ratio improved to 4 percent from 8 percent a year earlier, while the net stage 3 loans ratio declined to 2 percent from 3 percent.
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