Business
Sri Lanka ratings upgrade depending on debt restructuring parameters and reforms programme
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.
Business
SIA warns of 1,000 SME collapses, urges fair policies to protect Sri Lanka’s rooftop solar sector
By Sanath Nanayakkare
The Solar Industries Association (SIA), representing over 1,000 companies and employing 40,000 workers in Sri Lanka’s rooftop solar sector, issued a stern warning recently regarding threats to the industry’s survival and the nation’s renewable energy ambitions. The association condemned recent regulatory instability and called for urgent policy reforms to avert economic and social crises.
The SIA categorically rejected the Ceylon Electricity Board’s (CEB) claim that rooftop solar installations caused the recent island-wide power outage, calling the accusation “baseless and misleading.”
“Public trust is eroded when accountability is misdirected,” the SIA stated. “We demand an independent, transparent investigation led by experts appointed by the Ministry or the Public Utilities Commission (PUCSL). The CEB’s unilateral statements disregard the sector’s contributions and jeopardize Sri Lanka’s renewable energy transition,” they said.
“While acknowledging the formation of a tariff determination committee, the SIA criticized its narrow focus on financial parameters, ignoring the sector’s socioeconomic value. Rooftop solar empowers businesses and households with energy independence, reduces grid strain, and supports climate goals. However, proposed volatile tariff structures risk destabilizing over 100,000 installations—primarily owned by middle-class families—and deter future investment,” they noted.
“A rigid, equation-based tariff system is unsustainable,” the association warned. “Sri Lanka needs a stable policy framework to attract long-term investments. For instance, retirees could invest EPF savings into solar projects, securing income while advancing national energy targets. Without urgent action, 1,000 SMEs and 40,000 jobs face collapse, with dire consequences for employment, energy security, and economic stability,” they pointed out.
SIA urged policymakers to establish an independent committee to investigate the power outage fairly, expand the tariff committee’s mandate to include socioeconomic and environmental benefits and implement predictable policies to safeguard SMEs, households, and investor confidence.
“Sri Lanka stands at a crossroads,” the SIA emphasized. “Protecting rooftop solar isn’t just about energy—it’s about livelihoods, economic resilience, and a sustainable future. We urge stakeholders to collaborate on solutions that prioritize both people and progress,: they emphasized.
SLT-MOBITEL has entered into a strategic partnership with Rush Lanka Group to provide exclusive SLT-MOBITEL Fibre connectivity solutions to their portfolio of luxury apartment developments in Colombo and the suburbs, enhancing the digital experience of all residents.
The agreement was signed between Imantha Wijekoon, Chief Business Officer of Consumer Business at SLT, and Zaid Ariff, Director of Construction at the Rush Group headquarters. Representatives from both companies also attended the ceremony.
Under the partnership, SLT-MOBITEL will serve as the exclusive digital service provider for five prestigious Rush Lanka developments including Street Rush Residencies and Rush Court 4 in Mt. Lavinia, Rush Tower 2, Rush Metropolis in Dehiwala, and Rush Court 5 in Colombo 14. The collaboration ensures residents will enjoy superior fibre connectivity speeds, enabling seamless digital experiences in modern smart homes. The partnership with the Rush Lanka Group aligns with SLT-MOBITEL’s commitment to offer ultra-fast, reliable connectivity solutions to residential developments. Delivering exclusive fibre connectivity to luxury apartments, SLT-MOBITEL ensures residents have access to world-class digital services that complement the living experience promised by Rush Lanka Group.
Powered by advanced fibre technology, SLT-MOBITEL network will provide the residences with seamless performance across digital activities. The SLT-MOBITEL Fibre backbone ensures lag-free experiences whether tenants are gaming online, attending virtual classes, working remotely, or streaming high-definition entertainment. SLT-MOBITEL Fibre will transform the lifestyles of all apartment users bringing greater convenience and superior quality of life.
Rush Lanka Group, established in 1992, is a property developer specializing in luxury and semi-luxury apartments.
Starting its promotional work for 2025, Sri Lanka Tourism Promotion Bureau (SLTPB) added another feather into its cap of endorsements, by being recognized as the most innovative Tourism Board promotion in Outbound Travel Mart (OTM) . In parallel to that, several other sub events were held. The OTM was held in Jio World Convention Centre, Mumbai—India, from 30th January to 01st February 2025.Before OTM, the Global Village – Global Exchange & Trade Exhibition was held at the Surat International Exhibition & Convention Centre , Sarsana, Surat (Gujarat – India , from 25th to 27th January 2025. This travel fair was organized by Southern Gujarat Chamber of Commerce and Industry (SGCCI).
Sri Lanka participated in both OTM and South Asia’s Travel & Tourism Exchange (SATTE), held from 19th – 21st Feb 2025, in New Delhi, India . This was an excellent opportunity for Sri Lanka to promote it’s potential as a unique travel destination, especially for the Indian counterparts, as SLTPB has identified India as the number one source market for Sri Lanka, tourism bringing the largest number of tourist arrivals to the destination.
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