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Sri Lanka ratings upgrade depending on debt restructuring parameters and reforms programme

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Bingumal Thewarathanthri, CEO, Standard Chartered Bank

by Sanath Nanayakkare

Sri Lanka can reasonably expect a much desired ratings upgrade after the government of Sri Lanka has announced its debt restructuring plans and its sustained commitment to the economic reforms programme, Bingumal Thewarathanthri, Chief Executive Officer, Standard Chartered Bank said recently. He made this remark while addressing a Central Bank hosted webinar titled,”What is next for Sri Lanka in the wake of the IMF Programme?”

Keynote Speaker at the webinar was Dr. Indrajit Coomaraswamy, Former Governor, Central Bank of Sri Lanka. Deshal De Mel, Economic Advisor, Ministry of Finance and Murtaza Jafferjee, Managing Director, JB Securities were the other panelists.

The CEO of Standard Chartered Bank said that Sri Lanka is still not out of the woods and everybody needs to be very clear on that. Getting this EFF done in a six months was outstanding work compared to countries like Zambia and Surinam. But we should not overcelebrate it. Although it is commendable, we can’t be complacent because we can’t forget what we went through last year,” he said.

“There are guidelines on fiscal reforms in the IMF framework with specific targets in terms of debt to GDP ratio as well as a surplus in the primary account by 2025, among other things. Now, a lot of people are talking about a ratings upgrade for Sri Lanka by the global ratings agencies. But we have to wait until the government announces the debt restructuring parameters. After that, there will be some clarity and hopefully there will be an upgrade. However, to what level it would be upgraded, we don’t know. Further, it substantially depends on how Sri Lanka commits itself to the economic reforms programme going forward. The IMF is asking us to do something that we have been talking about in terms of our public sector workforce.

We have to re-purpose and re-size its 1.7 million people without asking them to leave their jobs. If you re-purpose at least half a million government sector workers into different things, the country will get productivity from them. Re- purpose and re-size, that’s the way to go. I am not a big fan of trying to save money from the government’s salary bill which is more than Rs. 1.2 trillion. We need to look at paying the right people better. I don’t need to tell you how doctors and professionals in various industries are getting paid.. We can’t retain talent at that level and we are losing over 50 doctors per month as we speak. That’s a thing we must fix. The IMF would give us broad guideline, but we have to fix things at the ground level appropriately.”

“We might receive some financing from the ADB and the World Bank. But real capital can come through FDIs. They are rare these days because the global markets are struggling, and so, capital is rare. So If you expect FDIs to flow into Sri lanka, first we need to understand why investors should come to Sri Lanka. Our investment policy is not very stable because it changes with change of government. So is our tax structure. Therefore, I think our investment policies have to be documented at constitutional level.

They should be made constitutional laws which can’t be changed without a proper mandate. We need to clearly understand what will take our GDP to the next level. You would have seen the predictions by the authorities as well as from the IMF, I think we are forecasting 2.5% growth and I think that is below Sri Lanka’s potential. Sri Lanka should be firing about mid-single digit growth in our view compared with other emerging markets. Sri Lanka has that potential. It is very important for us to understand the strategic pillars to take the economy to that level and ensure that the platform is well-documented. Basically there needs to be a legal framework around it so that changes of governments cannot change the investment policies,” he said.



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Sri Lanka introduces landmark food & beverage regulations

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The Sri Lankan government has announced new restrictions on marketing food and beverages to children, effective January 1, 2025, under the Food (Labelling & Advertising) Regulations 2022.

The Ceylon Chamber of Commerce, through its Food & Beverage Steering Committee, was a key partner in shaping these regulations by providing inputs on food science, nutrition, international regulatory practices, and legal frameworks during an over decade-long consultation process with the Ministry of Health.

Under the new rules, the industry must ensure that children under 12 are not featured in advertisements for F&B products. Further, the industry must ensure that F&B products are not advertised or promoted to children below 12 years without prior approval from the Ministry of Health.

Additionally, updated food labelling requirements, effective July 1, 2025, will empower consumers with essential information, including nutritional values and detailed ingredient lists, to make informed food choices. These updates address gaps in the regulations established in 2005 and align the framework with international standards.

Buwanekabahu Perera, CEO of The Ceylon Chamber of Commerce, stated:

“We commend the Ministry of Health for modernising Sri Lanka’s food regulatory framework after 20 years. Transitioning entrenched industry practices will be challenging for businesses, from SMEs to large-scale operators. However, it is vital to balance consumer protection with the continued availability of packaged food, and preserving longstanding brand equity. A corrective and collaborative approach to implementing these regulations will be important to ensure a smooth transition.”

(CCC)

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USD 40 million five star resort to be powered entirely by renewable energy

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Hewage Upananda Karunaratne

By Ifham Nizam

In a bold step to transform the tourism landscape of Sri Lanka’s Sabaragamuwa Province, a groundbreaking USD 40 million ecotourism project is set to take shape in the serene town of Uda Thimbiriya, Bulathkohupitiya. The “Thimbiriya Skyline Resorts,” a luxury 100-room, five-star resort, will be built on sustainable principles, powered entirely by renewable energy and achieving net-zero carbon emissions.

At the helm of this ambitious venture are two visionaries: Mrs. Elisabeth Berg Khan, an economist with a passion for green innovation, and Dr. Sikander Khan, a renowned professor and CEO of Peak Education Ltd., based in Stockholm, Sweden. Partnering with them was Hewage Upananda Karunaratne, the head of UDS Agro Holdings. ‘Together, they formed an alliance built on mutual respect and a shared dream: to create an eco-tourism marvel that would redefine hospitality, knowledgeable sources said.

The resort will be a pioneer in green tourism, integrating 1 MW agrivoltaic solar energy systems to support its operations, ensuring a fossil fuel-free environment. The project, which is a collaborative effort between international and local experts, boasts an ambitious design that includes energy-producing facades, building-integrated photovoltaics, and passive house components, such as enhanced insulation and energy-efficient windows.

At the forefront of this initiative is Major General Nimal Krishnaratne (Rtd), the Project Coordinator. With extensive experience in leadership and coordination, Major General told The Island Financial Review that the resort will not only attract international tourists but also foster significant local employment and skill development.

“This ecotourism project is more than just a hotel; it is an opportunity to uplift the entire community. With around 120 direct job opportunities and the training of local youth in marketable skills, we are helping to raise the standard of living in the area, he said.

The USD 40 million investment, with 99% of the funding sourced from foreign direct investment (FDI), will also have far-reaching social benefits. A portion of the proceeds will be allocated to community initiatives, such as healthcare, housing, and environmental development, particularly focusing on flora and fauna protection. Additionally, the project aligns with several of the United Nations’ Sustainable Development Goals (SDGs), underlining its commitment to sustainability and inclusive growth.

The resort’s location on eight acres of land, with five acres dedicated to hotel facilities and three acres for the solar farm, further emphasizes its focus on green infrastructure.

According to Major General Krishnaratne, this project is a perfect example of how tourism can be developed sustainably, creating a model for future projects across the region. “Once operational, this resort will not only be the first five-star hotel in the Sabaragamuwa Province but will also set a global standard for ecotourism, he remarked.

Already approved by the Sri Lanka Tourism Development Authority (SLTDA) with preliminary clearance, the Thimbiriya Skyline Resorts project will be a milestone for both the local economy and Sri Lanka’s tourism sector. The resort will help bring international attention to the area, boosting tourism and supporting the country’s broader goal of becoming a global ecotourism destination.

Major General added: “This project represents a unique synergy between sustainable development and tourism, one that we believe will create lasting positive impacts for generations to come.”

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Vision Care opens second Homagama branch, expanding access to top-notch eye care solutions

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Vision Care, Sri Lanka’s leading provider of vision, hearing, and eyewear solutions, opened its second branch in Homagama, marking a significant step in its mission to bring high-quality eye and hearing care to every corner of the country. In celebration of the opening, Vision Care also conducted an eye and ENT camp at the branch premises, offering free consultations and basic healthcare services to the public.

The opening ceremony was graced by esteemed guests, including renowned,Dr Lalantha Gurusinghe – Consultant Vitreo Retinal Surgeon (Colombo south teaching hospital & National eye hospital), Dr M D S Guneyilleke – Consultant eye surgeon (National eye hospital)

along with Vision Care’s Chairman Dasantha Fonseka, Managing Director Janaka Fonseka, several staff members, and well-wishers. This event celebrated the brand’s dedication to serving regional communities. Located in the center of Homagama city, the new branch minimizes travel time for residents while ensuring accessibility to all. Combining convenience with exceptional service, the branch features modern interiors, ample parking, and a welcoming atmosphere, providing customers with a seamless experience as they access expert care and premium products.

The newly opened Homagama branch offers a wide range of services, including eye tests, hearing assessments, and a curated collection of eyewear brands and hearing aids. Customers can explore stylish, high-quality frames and sunglasses from global brands such as Ray-Ban, Vogue, Polaroid, and Vintage. Additionally, the branch features advanced hearing aids from Oticon and Starkey, catering to both adults and children. With state-of-the-art technology and a team of experienced professionals, the branch ensures reliable, personalized solutions for every customer.

For over 30 years, Vision Care has been a trusted name in the eye and hearing care industry. Its unwavering commitment to innovation and customer satisfaction continues to set benchmarks, ensuring every location reflects the brand’s promise of excellence.

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