Business

The Plight of the Poor

Published

4 years ago

2022/07/19

Sahan Weerasooriya

Sri Lanka’s Deepening Economic Crisis:

By Lakshila Wanigasinghe

Empty supermarket shelves, endless queues to buy essentials and overnight camping around fuel stations are now regular sights in Sri Lanka. As the economy continues to plummet with no viable short-term solutions in sight, levels of frustration among the citizens continue to rise.

The country’s worst economic crisis since independence has battered Sri Lankans from all walks of life but the fallouts are impacting the poor with greater intensity. If urgent measures are not taken to support the most vulnerable at this time, more Sri Lankans will slip into poverty thus increasing intergenerational poverty in the long term. This blog identifies some of the most pressing challenges faced by the poor and vulnerable amidst the prevailing crisis and outlines policy options to safeguard their well-being.

Background

Sri Lanka’s current economic crisis is a result of several years of mismanagement, corruption, shortsighted policymaking, and an overall lack of good governance. Insufficient foreign reserves at Sri Lanka’s Central Bank and loss of access to international capital markets resulted in the country defaulting on debt for the first time in history. Unchecked external borrowings, tax cuts that widened the existing budget deficit, the chemical fertiliser imports ban and the sudden floating of the Sri Lankan rupee are among several factors that contributed to the economic collapse. Tourism, together with apparel and tea exports – some of Sri Lanka’s main income sources – were affected in recent years due to various internal and external factors such as the 2019 Easter Sunday attacks followed by COVID-19 in 2020. Now, the economic crisis presents multiple challenges including severe threats to nutrition, food security, healthcare, and education.

Impacts on the Vulnerable

The rapid depreciation of the Sri Lankan Rupee and the inability of wages to keep up with inflation have drastically lowered the standard of living. Inflation, as measured by the Colombo Consumer Price Index (CCPI) for June 2022, was 54.6% in comparison to 39.1% in the previous month. Further, food inflation rose to an alarming 80.1% in June 2022.

The ability to earn a living wage is hampered by insufficient fuel supplies. This along with the rise in transport costs and overcrowded public transport have left workers struggling to commute to work. Daily wage earners such as three-wheel drivers are in fuel queues for days losing out on productive work hours. Regular interruptions to the power supply are affecting small-business owners’ ability to conduct business and with many completely shutting down operations. Shortages in gas and kerosene oil for cooking, rise in commodity prices and supply shortages are changing people’s consumption patterns forcing many families to reduce their consumption and non-consumption expenditure. The inability to receive adequate nutrition due to increases in the cost of living is affecting children’s health and may lead to increased rates of malnutrition in the future. Apart from this, continuous school closures are impeding children’s education, especially at the village level where most families lack the technology for digital learning.

Short-term Relief

Sri Lanka was facing a reversal in poverty levels since the COVID-19 pandemic and faces the risk of many new groups following suit along with those who are already poor falling deeper into poverty. Hence immediate measures must be taken to support the poor and ensure their livelihood sustenance to some extent. As the current fiscal restrictions pose a challenge in supporting all groups in need, emergency relief efforts need to be targeted toward the most vulnerable so as to not further cripple the economy. Providing cash transfers is one such relief option. They were widely popular as a global emergency response during COVID-19. While Sri Lanka also adopted this as a response to the pandemic, the key in this context would be to provide an adequate sum of money to the most deserving households. Although this may include a considerably large number of at-risk families due to rising inflationary pressure, unfortunately only those in dire need of support must be beneficiaries at this time. As such authorities will have to make tough choices to correctly identify deserving households. Financing these cash transfers will require an allocation of a portion of funds from foreign aid, loans and other humanitarian assistance received by Sri Lanka.

Following the declaration of a three-day weekend for public sector employees, primarily to utilise their time to cultivate consumable crops at the household level, the provision of in-kind support such as seeds and fertiliser for cultivation is another option. As with monetary support, these initiatives must be targeted toward the poorest who are unable to meet their required nutrition levels. However, there is an issue with such families not having suitable plots of land for cultivation. Thus, initiatives need to be thought of on how to overcome space limitations. One option is through community gardens which can be introduced in village-level Grama Seva offices, school grounds etc. Proper organisation, allocation, and monitoring are imperative to successfully execute these initiatives.

Although an unpopular solution, temporary rationing measures will need to be put in place, especially for high-demand commodities such as fuel, gas, milk powder and medicine etc. This will help curb excess purchasing of items and ensure all individuals have access to purchase necessities. Excessive purchasing often leaves the poor on the losing end since they do not have sufficient funds to purchase beyond their immediate requirements. Hence rationing will help with maintaining sufficient supplies for low-income groups such as daily-wage earners. While it is important to support the poor and vulnerable at this time, it is imperative to ensure the limited fiscal and other resources are used effectively. Further, these measures need to be taken alongside working towards ensuring political stability and debt sustainability to restore international confidence in Sri Lanka. This will encourage support from the global community to help Sri Lanka work towards overcoming this crisis.

Link to the full blog – https://www.ips.lk/talkingeconomics/2022/07/18/sri-lankas-deepening-economic-crisis-the-plight-of-the-poor/

Lakshila Wanigasinghe is a Research Officer at IPS with research interests in poverty, social welfare, development, education, and health. She holds an MSc in Economics with a concentration in Development Economics and a BA in Economics with concentrations in International, Financial and Law and Economics from Southern Illinois University Carbondale (SIUC), US. (Talk with Lakshila – lakshila@ips.lk)

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Business

Sri Lanka Retailers’ Association unveils strategic roadmap for the future at 9th AGM

Published

9 hours ago

2026/06/27

Thilina Walpola

The newly elected Office Bearers and Executive Council of the Sri Lanka Retailers’ Association for 2026–2027.

The Sri Lanka Retailers’ Association (SLRA) successfully held its 9th Annual General Meeting (AGM) on 23 June 2026 at Hilton Colombo Residencies, bringing together members of the country’s organized retail sector to review the Association’s achievements over the past year and outline its strategic priorities for the future.

The AGM formally adopted the Annual Report and Audited Accounts for the financial year 2025/26 and elected the Office Bearers and Executive Council for the year 2026–2027.

Infiyaz M. Ali, Director of Healthguard Pharmacy Ltd, was announced as President of the Sri Lanka Retailers’ Association for 2026–2027. He will be supported by Mahesh Wijewardena, Executive Director and Group Chief Executive Officer of Singer (Sri Lanka) PLC, as Senior Vice President, and Kumar De Silva, CEO of SPAR SL Private Ltd, as Vice President.

The newly appointed Executive Council comprises senior representatives from leading retail organizations across Sri Lanka, reflecting the Association’s continued commitment to representing the diverse interests of the retail sector.

Addressing the gathering, President Infiyaz M. Ali emphasized the importance of collaboration, innovation, and industry advocacy in driving the next phase of growth for Sri Lanka’s retail sector.

“Retail continues to be one of the most dynamic sectors of the Sri Lankan economy. As consumer expectations evolve and technology reshapes the industry, the role of SLRA is to create opportunities for knowledge sharing, collaboration, and collective action. We remain committed to supporting our members and contributing to the sustainable growth of the retail ecosystem,” he stated.

The AGM was honoured by the presence of Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, who attended as Chief Guest. In his address, the Minister highlighted the importance of the retail sector as a key contributor to economic development, employment generation, and consumer welfare, while emphasizing the need for stronger public-private collaboration to strengthen the industry’s competitiveness.

Members also had the opportunity to gain insights from the Guest Speaker, Chayu Damsinghe, Head of Macroeconomic Advisory at Frontier Research, who shared perspectives on Sri Lanka’s economic outlook, emerging business trends, and the opportunities and challenges facing the private sector in the years ahead.

A key highlight of the evening was the presentation on the upcoming Sri Lanka Retail Forum 2026, SLRA’s flagship industry event, which will be held under the theme “Retail Without Boundaries – Building the Next Growth Engine.” The forum is expected to bring together more than 500 industry leaders, retailers, entrepreneurs, policymakers, technology providers, and investors to discuss the trends shaping the future of retail.

The Association reaffirmed its commitment to supporting retailers through industry advocacy, professional development initiatives, policy engagement, and knowledge-sharing platforms that foster innovation and business growth.

Since its establishment in 2015, SLRA has played a pivotal role in bringing together retailers from diverse sectors including FMCG, fashion, healthcare, consumer electronics, and digital commerce, creating a unified voice for the industry.

With a renewed leadership team and an ambitious programme of activities planned for the year ahead, SLRA looks forward to working closely with its members and stakeholders to strengthen Sri Lanka’s retail sector and contribute to the country’s economic development.

Business

Month-end profit-takings drive stock trading; indices up

Published

10 hours ago

2026/06/27

Thilina Walpola

CSE trading was yesterday driven by month- end profit-takings, market analysts said.Amid those developments both indices moved upwards. The All Share Price Index went up by 2.77 points, while the S and P SL20 rose by 10.91 points.

Turnover stood at Rs 1.91 billion with two crossings. Those crossings were; ACL Cables 2.1 million shares crossed to the tune of 209 million; its shares traded at Rs 100 and Hayleys 100,000 shares crossed for Rs 24.1 million; its shares traded at Rs 240.

In the retail market companies that mainly contributed to the turnover were: Hayleys Rs 141 million (587,000 shares traded), Lanka Realty Rs 105 million (1.8 million shares traded), CIC (Non Voting) Rs 81 million (3.1 million shares traded), HNB Finance Rs 79 million (8.3 million shares traded), Dialog Axiata Rs 56.7 million (1.2 million shares traded), Colombo Dockyard Rs 48.6 million (371,000 shares traded) and Singer SriLanka Rs 46.6 million (586,000 shares crossed).

During the day 63.9 million share volumes changed hands in 18300 transactions.

It is said that manufacturing sector counters, especially Hayleys, performed well while construction related companies, especially ACL Cables, also performed well. Banking sector counters, especially HNB, were also notable on the floor.

Meanwhile, Lee Hedges concluded negotiations with Amana Bank to sell and transfer its land and premises in Kollupitiya for a total consideration of Rs 2.7 billion, with the transaction completed on June 25, 2026.

Lee Hedges shares were trading up 2.52 percent, at Rs.325.75, while Amana Bank was up 1.13 percent at Rs.26.80.

Yesterday the rupee was quoted at Rs 336.90/337.00 to the US dollar in the spot market, from Rs 337.25/35 the previous day, while bond yields were quoted slightly higher, dealers said.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 332.3416 buying, 342.0372 selling; the euro was 376.2315 selling, 389.9580 buying; and the pound was 436.5994 buying, 451.8110 selling.

By Hiran H Senewiratne

Business

MullenLowe’s Praveena Perera becomes first Sri Lankan woman named to Campaign APAC’s 40 Under 40

Published

10 hours ago

2026/06/27

Thilina Walpola

Praveena Perera

Honoured among Asia-Pacific’s most influential emerging professionals

Praveena Perera, Associate Vice President and Client Services Director at MullenLowe Group Sri Lanka, has become the first Sri Lankan woman to be named to Campaign Asia-Pacific’s 40 Under 40 list, a recognition that celebrates the region’s most influential emerging leaders across marketing, media, technology, and communications.

Now in its 14th year, Campaign Asia-Pacific’s 40 Under 40 recognises outstanding professionals across the region whose achievements and leadership potential are shaping the future of the industry. Praveena earned her place on the 2026 list following a comprehensive assessment by senior industry leaders and Campaign Asia-Pacific’s editorial team.

Commenting on the recognition, Praveena Perera said, “This is a deeply meaningful milestone in a journey that has been shaped by continuous learning, hard work, and the support of many people along the way. I am grateful to MullenLowe Sri Lanka, my colleagues, mentors, and family for their belief in me. Recognition such as this is never an individual achievement, and I hope it encourages more women in Sri Lanka to pursue leadership opportunities and realise their potential.”

Praveena currently leads the Unilever portfolio at MullenLowe Sri Lanka, overseeing 27 brands across four categories. Her leadership has played a pivotal role in driving business growth, strengthening client partnerships, and delivering award-winning work. These efforts contributed to MullenLowe Sri Lanka being named Creative Agency of the Year at the Campaign Agency of the Year Awards 2025, while also securing Agency of the Year and Marketer of the Year honours alongside Unilever Sri Lanka at the Effie Awards Sri Lanka 2025.

As one of the youngest Associate Vice Presidents at MullenLowe Sri Lanka and among the first women to serve on its Operating Committee, Praveena has built a reputation for leadership that extends beyond business performance. Her growing list of achievements includes being recognised among the Top 50 Professional and Career Women Global Awards in 2023, reflecting a career marked by consistent excellence, while her commitment to mentoring future talent continues to contribute to greater female representation within the industry.

Thayalan Bartlett, Executive Chairman of MullenLowe Group Sri Lanka, said, “Praveena’s recognition is thoroughly deserved. She has consistently demonstrated exceptional leadership, commercial acumen, and resilience while navigating some of the most demanding circumstances our industry has faced. Her ability to balance performance, people development, and long-term thinking has distinguished her as one of the most promising leaders of her generation.”

Campaign Asia-Pacific’s 2026 cohort comprises 40 professionals representing 14 markets across the region, selected for their contributions to business growth, innovation, leadership, and industry advancement. Praveena’s inclusion marks an important milestone for Sri Lanka’s communications industry and reflects the growing impact of Sri Lankan talent on the regional stage.

MullenLowe Group Sri Lanka (MLG) is Sri Lanka’s largest integrated brand communications company with nine independent strategic business verticals spanning Mainstream, Digital, Activations, MarTech, Media and Public Relations. MLG’s Sri Lanka office consists of 111 staff, serves 43 of the nation’s top corporates, manages 111 brands across 33 categories, including 80% of the top 10 and 50% of the top 20 most advertised categories in the country, making it a company with prolific cross-category knowledge. Ranked among the world’s top 100 most effective agencies and APAC’s top 20, MLG is Sri Lanka’s reigning Effie Agency of the Year, Campaign Asia’s Creative Agency of the Year for South Asia, and a consistent local and regional awards leader for over a decade. It operates as a full member affiliate of MullenLowe Group Worldwide, which was recently acquired by Omnicom. As the world’s largest marketing services group, Omnicom combines unmatched global knowledge and experience with local insight to deliver end-to-end brand solutions.