Business
Sri Lanka’s first carrier-neutral and high-density data center launches at Orion City IT Park
In a major step forward in Sri Lanka’s rapid transformation towards becoming a South Asian hub for IT and tech-enabled services, Digital Reality (Pvt) Ltd. launched the country’s first carrier-neutral, high-density data center built to TIA Tier-3 standards and a capacity over 200 racks at Orion City IT Park, Colombo 09 under the brand name OrionStellar.
The launch event featured Information and Communication Technology Agency of Sri Lanka (ICTA) Chairman, and Telecommunications Regulatory Commission of Sri Lanka (TRCSL) Director General, Oshada Senanayake as Chief Guest, in addition to attracting enthusiastic participation from numerous high-ranking representatives from Sri Lanka’s burgeoning IT, telco, and corporate sectors, as well as academia and key Government officials.
Addressing the gathering, Senanayake said: “Today’s launch of Sri Lanka’s first carrier-neutral data centre is part of an interesting paradigm shift that is already underway. So it is great to see entrepreneurs stepping into this vital space and taking up the challenge of establishing the vital infrastructure necessary for Sri Lanka to unleash its true potential. Particularly in the context of unprecedented volatility, technology has been a key enabler in Sri Lanka’s ambitious transformation towards a US$ 3 billion digital economy
“We have continuously and aggressively invested in the next generation of technologies, and today, many of the essential components – including 7 submarine cables that connect us to the rest of the world – are now in place for Sri Lanka to become one of the region’s most attractive destinations for data hosting. This in addition to digitizing Sri Lanka’s public and private sector. However, we cannot afford to be complacent. Other SAARC countries too are making bold advancements and we cannot afford to fall behind.
“We see immense growth potential for Sri Lanka through the embedding of artificial intelligence and machine learning into public and private sector operations. Together with the robust 5G capabilities that are being set in place today, we believe that Sri Lanka will be able to unleash hyper-growth. Today’s launch of a truly globally competitive data centre is a vitally important advancement in this direction,”
The newly launched high density data center is designed to offer world-class services to support the rapidly escalating demand for computing power in an increasingly digital Sri Lankan economy. It promises the highest energy efficiency and power density up to 15 kW per rack with a total power capacity of 1.5 MW.
“The launch of Sri Lanka’s first, and most power efficient high density data center and the impressive capabilities it offers represents a historic milestone in the development of the island’s IT infrastructure. It is also a momentous step in our mission to radically simplify digital infrastructure challenges for local and regional enterprises, and drastically improve the speed at which they conduct their business.” Digital Realty Chairman, Rajendra Theagarajah said.
“Sri Lanka enjoys several uniquely valuable natural and cultivated advantages which make it an ideal option for safely and reliably storing data at scale. Geographically, we are situated just offshore of one of the largest emerging IT economies and in close proximity to key markets in Asia,” Orion City Founder/Director and Digital Realty Managing Director, Jeevan Gnanam said.
“Our nation also possesses outstanding IT talent and adopts one of the most proactive stances in the region with IT and connected infrastructure. With our DC now online, we will be able to provide clients with best-in-class, globally competitive services to accelerate their digitalization journeys, rationalize core infrastructure costs, and establish stronger levels of security and redundancy, all while reducing energy costs and contributing towards a green and prosperous economy,” Gnanam added.
Built in compliance with the latest ISO 27001 standards and global data center standards (TIA-942 Rated 3), the new data center will deliver the highest levels of reliability, efficiency, and redundancy with 99.98% uptime. The center features power infrastructure with 2 (N+1) UPS systems with 30 minutes battery backup up time, and an N+1 generator system supported with 72-hour fuel bulk tanks ensuring reliable and uninterrupted power supply.
Notably, the facility was also designed with an unmatched focus on environmental sustainability enabled by an in-row cooling system with best-in-class efficiency ratings. As a result, OrionStellar guarantees the best power usage efficiency (PUE) with a design PUE of 1.4. This will translate to power savings up to 40% for clients migrating their IT loads to OrionStellar. The facility also features an unloading bay ready to receive customer inventory for hosting and a staging area to test equipment prior to entering the data hall.
OrionStellar is poised to offer an array of digital infrastructure solutions and value-added managed services to enterprises. It will support the rapidly escalating demand for computing power in an increasingly digital Sri Lankan economy and the region at large, with a special emphasis on providing highly cost-effective data offshoring services for regional enterprise powerhouses.
The long-term business purpose is to “simplify enterprise digital infrastructure challenges to accelerate digitalization and growth” according to COO of OrionStellar, Nalaka W. Bandara, a specialist in enterprise communication solutions and data center businesses with over 20 years of collective experience.
OrionStellar colocation solutions have been designed to meet the needs of different business segments with varying requirements. The facility has already designated white labeled space for telcos and larger MNCs, featuring dedicated cages with biometric access control for large enterprises. Individual racks with biometric or lockable doors and U level hosting for SME and startup hosting needs are among the product options complemented with “Remote Pair of Hands” service as a value addition.
Notably, each co-location space or rack will be individually monitored, even to U level, for power delivery and consumption to ensure that clients only pay for what they use, enabling cost visibility and control in their digital infrastructure investments.
Further, the OrionStellar data center offers an array of value-added services including storage as a service, back up as a service to secure mission critical enterprise data, disaster recovery solutions during unexpected downtime and cost-effective data center migration services with minimal disruption to core business functions.
Orion Towers at Orion City is equipped with state-of-the-art facilities and a full spectrum of services, offering prime workspace solutions ranging from custom-built, office spaces, dedicated seating space, shared seating and BCP Seating. OrionStellar client companies can conveniently co-locate their IT Network Operations Centers (NOCs) closest to the data center with convenient access to banks, shopping centers, recreational facilities, food-courts, and fine-dining restaurants.
“The OrionStellar data center is guaranteed to unleash a new wave of tech-enabled opportunities across the entire spectrum of local enterprises – from SMEs and tech-startups to large corporates and regional MNCs,” Jeevan Gnanam asserted. He further explained that “with the launch of this high-density data center, we aim to establish the most secure and scalable infrastructure to position Sri Lanka as a hub in this digital economy.”
The Sri Lankan government has intensified its efforts to mitigate human-elephant conflicts and reduce elephant fatalities, allocating substantial funds in the 2025 budget for elephant conservation. The Department of Wildlife Conservation (DWC) has introduced a range of targeted measures, emphasizing public participation and localized interventions.
Recognizing the critical role of local communities, the government has launched awareness programs in high-risk Grama Niladhari divisions. By 2025, 23 villages have been identified for intervention, with 43 awareness programs planned. These initiatives aim to educate residents on coexistence strategies and reduce human casualties.
To physically deter elephants from entering villages, authorities are fast-tracking the construction of electric fences and the establishment of watch posts. The Civil Security Force will play a key role in these operations, enhancing protection through continuous monitoring and rapid response mechanisms.
In response to the alarming rise in illegal elephant killings, the government has reaffirmed its commitment to enforcing the Flora and Fauna Protection Ordinance. The Department of Wildlife Conservation has warned that perpetrators who engage in poaching or use firearms and explosive traps will face severe legal consequences, including criminal prosecution and heavy penalties.
Commenting on these developments, Ranjan Marasinghe, Director General of the Department of Wildlife Conservation, stressed the urgency of the situation:
“Sri Lanka’s wild elephant population is an invaluable national asset and balancing conservation with human safety is a top priority. Our latest initiatives integrate community-driven solutions with stronger legal enforcement to ensure the long-term survival of elephants while protecting human lives.”
Manjula Amararatne, Director of Protected Area Management, emphasized the department’s proactive stance:
“By enhancing physical deterrents such as electric fences and engaging local communities in conservation efforts, we are creating sustainable solutions to minimize conflicts.”
Meanwhile, U.L. Taufiq, Deputy Director (Elephant Conservation), stressed the role of law enforcement:
“Illegal elephant killings must stop. We are working closely with the judiciary to ensure those responsible face the full extent of the law.”
by Ifham Nizam
Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, assured on Wednesday that a systemic economic “trickle-down” effect would create new employment opportunities, generate greater economic dividends, and provide better government services to the people, among other benefits.
The Governor’s remarks came in response to a question posed by The Island Financial Review:
The Island: “Governor, Sri Lankan banks have reported robust profits and strong balance sheets, yet ordinary citizens remain trapped in a daily struggle for survival. At a recent business forum, a prominent banker argued that the ‘trickle-down effect’ would eventually alleviate public hardship. Do you agree with this theory, and if so, when will Sri Lankans actually feel relief in their lives?”
Governor: “The banking sector’s return on equity aligns with sustainable business practices. The banking industry, like tourism, manufacturing, or any other sector, must generate reasonable profits to survive and expand. This profitability is not unique to banks; it is a prerequisite for broader economic recovery. During the crisis, many sectors collapsed, but banks could not afford losses, as public trust hinges on their stability. Had banks failed, depositors would have panicked, triggering a bank run. We instructed banks to prioritise stability while accepting modest profits during the worst of the crisis. Their current profits remain disproportionate compared to other sectors. As the economy strengthens, recovery will generate jobs, dividends, and services, enabling the trickle-down effect to reach all citizens.”
The Governor made these remarks during the Q&A session following the second Monetary Policy Review for the period up to March 2025.
When asked whether the Central Bank was intervening to safeguard the rupee, the Governor replied, “We have been purchasing US dollars—we buy dollars from the market.”
On foreign exchange supply and demand, he stated, “It fluctuates daily for various reasons. In February and March 2024, we observed foreign inflows into government securities. Meanwhile, exporters and the remittance sector are performing well. Import demand remains stable at healthy levels. Thus, there is a ‘nice balance’ between foreign exchange inflows and outflow.”
According to the Review, rupee liquidity remains in surplus, and market interest rates continue to decline in line with the eased monetary policy. Credit flows to the private sector remain robust, supported by low interest rates. The Central Bank expects this trend to continue, bolstering domestic economic activity.
The Governor also noted that car import orders received thus far total approximately USD 200 million.
Authorities had initially projected USD 1 billion would be required to meet the car import demand after an import ban that lasted nearly 5 years and that would help accrue significant amount of taxes to the Treasury.
By Sanath Nanayakkare
CEAT Kelani Holdings has been adjudged the best-managed tyre manufacturing company in Sri Lanka and reaffirmed as one of the top 20 companies in the country for best management practices, by the Institute of Chartered Professional Managers (CPM) Sri Lanka.
The company received the Category Award in the ‘Tyre, Rubber, Metal & Wood Furniture’ sector at the 2025 edition of CPM’s ‘Best Management Practices Company Awards’ in addition to the Top 20 award presented at the awards gala. This is the second consecutive year that CEAT Kelani was recognised as one of the best managed companies in Sri Lanka.
The CPM awards honour the best practices in management in terms of leadership, policies and strategies, people management, partnerships & resources, processes and performance.
“Awards of this nature will encourage us to strive for even greater heights in management practices, adopting global best practices in aligning strategic direction with a people-centric approach,” CEAT Kelani Managing Director Ravi Dadlani said. “We have already shattered the stereotype for large-scale manufacturing operations and are considered a case study for a successful privatisation of a state-owned enterprise, with unprecedented achievements in productivity, product development, deployment of new technology, research and development, market leadership, sustainability and good corporate citizenship.”
He said CEAT Kelani has transformed from an “inside-out” company to an “outside-in” organisation, placing customer and market centricity at the core of everything it does. This shift is reinforced through regular market visits by employees at all levels, including management, shop floor staff, and all business functions.
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