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The Political Economy of Fiscal Policies and Regulations to Promote Healthy Diets in Sri Lanka

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Better Policies for Better Diets:

IPS Policy Insights

Non-communicable diseases (NCDs) have posed a critical health challenge for Sri Lanka for several decades. Estimated to account for 83 per cent of all deaths in Sri Lanka today, NCDs have serious health and economic consequences for both individuals and the country.1 In 2000 and 2010, the deaths that occurred due to NCDs were estimated as 74 and 76 per cent of the total deaths respectively.2 Unhealthy dietary patterns are one of the main behavioural causes for escalating NCD incidences.3 While 72.5 per cent of the Sri Lankan population eat less than five servings of fruit and/or vegetables on average per day4 only 26.9 per cent of the males and 28.0 per cent of the females consume five or more servings of fruits and/or vegetables per day.5 Further, 26.5 per cent of school children aged 13-17 years reported that they consumed a carbonated soft drink at least once per day.6 This shows how unhealthy dietary patterns are followed in Sri Lanka every day.

Political Economy and NCDs

Fiscal interventions are crucial to correct market failures, create incentives to reduce dietary risk factors for NCDs, and generate government revenue.7 Fiscal policies and regulations are implemented within complex country-specific systems. They are influenced by several contextual factors such as social norms and acceptances, stakeholders, their interests and influences, resource implications, equity and human rights, and feasibility. These factors are collectively recognised as the political economy. A country’s political economy greatly influences policy development, implementation, and realisation. A proper understanding of the political economy can help formulate better policies to meet the NCD challenge and create a healthy food environment.

Sri Lanka has introduced various measures including fiscal policies and regulations to promote healthy dietary patterns. The main objective of this policy brief is to highlight how the political economy of the food environment in the country influences the development of policies on healthy diets. The following findings are based on a political economy analysis conducted by the Institute of Policy Studies of Sri Lanka (IPS) as a part of the study on ‘Fiscal Policies and Regulations to Promote Healthy Diets in Sri Lanka’. The study examines the following aspects:

Policy framing – recognition of the main policy issue (underlying assumptions, perceptions, and concepts);

Policy contents – recognition of key policy elements; and Policy development – actors, stakeholders, and their interests.

The findings and recommendations are based on a review of policies introduced from the year 2000 onwards.

Key Findings

Policy Framing

Commendably NCDs, nutrition, and the food environment are recognised as important policy issues and framed well in the policy documents prepared by the health sector, mainly by the Ministry of Health.

Policy Contents

Healthy food consumption, production of healthy foods, social marketing and health promotion campaigns, nutrition labelling, nutrition education and retail sales of healthy food are the areas covered relatively well in the policy documents reviewed. However, many of the policy documents do not devote adequate attention to some crucial aspects such as funding sources, governance, gender sensitivity, and stakeholder identification. For example, the National Health Strategic Master Plan 2016-2025 Preventive Services Programme – Food Safety states, “The government of Sri Lanka will take over the responsibility in terms of finances and resource allocation to improve the food safety” as an assumption.8 But it does not either explain or present the financial sources and mechanisms to be used for this purpose. Likewise, in most policy documents, there is no explicit commitment to adopt fiscal measures to achieve the targets specified in those respective policies.

Policy Development

The Ministry of Health plays a central role in developing policies to reduce NCDs, promote healthy diets, and establish a safer food environment in Sri Lanka. Apart from the Ministry of Health, the Ministry of Agriculture has also demonstrated its interest in nutrition and the food environment. Production of healthy foods, marketing and trading, and nutrition education are some of the key areas covered in the policy documents of the agriculture sector. Other than these two ministries, other public sectors have not indicated any noticeable interest in NCDs, nutrition or the food environment.

Additionally, international development partners such as the World Health Organization (WHO), United Nations Children Fund (UNICEF), United Nations Population Fund (UNFPA), World Food Programme (WFP), and the World Bank (WB) are important stakeholders playing a supportive role in upgrading the nutrition status and food environment and addressing NCDs-related issues.

Recommendations

Continue to focus on policy framing and cover crucial policy elements:

The recognition and attention given to NCDs, nutrition and the food environment are progressive steps that need continuation. This is particularly important given the current NCD burden in Sri Lanka and the increasing trend of NCD-related morbidities and mortalities. However, the review of the policy documents revealed the lack of comprehensive coverage of important policy elements where some of the crucial aspects like governance structures, funding sources, and gender sensitivity are not adequately addressed.

It is essential to comprehensively confer due recognition to all the crucial aspects to implement the policies effectively and to achieve desired outcomes. For example, identifying governance structures is important for the effective implementation of policies. It also indicates the country’s commitment and responsiveness in addressing the issues identified in the policies. Likewise, it is necessary to identify funding sources to implement the proposed actions. No matter how well developed a policy is, it will not achieve its intended impact if the resources to implement the policy are not available.

Proactively seek the active
participation of all stakeholders
in policy development:

The efforts of the health sector (i.e., Ministry of Health) to develop policies on NCDs, nutrition and the food environment are commendable. Yet, the lack of involvement and interest by other sectors is a huge deterrent to achieving the expected outcomes of policies aimed at promoting healthy diets in Sri Lanka. Currently, these issues are regarded as “health issues” and other sectors/ministries either do not adequately recognise or completely ignore these concerns when they formulate policies for their respective sectors. The food environment, nutrition and NCDs are complex and interconnected issues.

Thus, policies that intend to address these issues must take a more holistic approach actively involving all the parties concerned. Further, the involvement of the highest level of the government such as the National Nutrition Council chaired by the President is recommended to lead and coordinate these processes, thereby assuring the highest level of political will and commitment.

This policy insight was prepared by IPS researcher Sunimalee Madurawala (sunimalee@ips.lk) based on findings from a study on ‘Fiscal Policies and Regulations to Promote Healthy Diets in Sri Lanka’ funded by the International Development Research Centre (IDRC), Canada. For more policy insights from IPS, visit: https://www.ips.lk/publications/policy-insights/.



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DevPro and WCIC come together to accelerate women’s economic empowerment in Sri Lanka

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DevPro and Women’s Chamber of Industry and Commerce (WCIC) signed a formal partnership on Wednesday, 28th January to collaborate in promoting women’s economic empowerment and inclusion in Sri Lanka.

DevPro builds on 30 years of OXFAMs legacy in Sri Lanka and works towards Inclusive Economic Development leveraging expertise in inclusive and climate-resilient market systems and enterprise development and innovation. DevPro’s work is guided by the core values of gender justice, inclusivity and community-led development. Through its recent projects, DevPro has supported over 270 women-led MSMEs, across agriculture, handloom, and tourism-related value chains in five provinces in Sri Lanka through a mix of interventions combining skills development, enterprise strengthening, market linkages, and gender-sensitive community engagement to improve income, resilience, and economic participation.

WCIC is the first women-only trade chamber in the world, dedicated to empowering women entrepreneurs and women-led MSMEs in Sri Lanka through skills-building, business advisory services, networking etc. Among its many initiatives, WCIC’s flagship annual event, “Prathibhabhisheka” – Women’s Entrepreneurs Awards has empowered many women owned and women-led businesses in Sri Lanka to enhance their business resilience and competitiveness through improved governance processes, financial health, market recognition and global expansion.

Through this partnership, both DevPro and WCIC, will leverage their collective expertise, networks and resources to advance women’s economic empowerment and inclusion through projects, capacity building, research and policy advocacy focused on women entrepreneurship development, innovative business models, sustainability certification and credentials, export readiness and market integration and financial literacy and inclusion.

The MoU was signed by Gayani de Alwis, Chairperson of WCIC and Chamindry Saparamadu, Executive Director of DevPro in the presence of senior members of both teams.

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FRELLA launches world class wellness products locally with Baurs & Co.

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FRELLA partners with the French perfumer Véronique Gabai

FRELLA, Sri Lankan-born and internationally-respected natural beauty and wellness brand, is setting the stage to expand operations by entering the Sri Lankan retail market. As the country’s only dedicated wellness company operating at an international scale, this move marks a new chapter for a brand with a growing global presence that has already earned the trust of luxury hotels and international customers.

For over seven years, FRELLA has emerged as Sri Lanka’s leading wellness brand, serving clients and partners across more than 15 international markets. The brand’s entry into the Sri Lankan retail market marks a significant milestone, allowing local consumers to access globally respected wellness products developed from the island’s own healing traditions. This retail expansion is supported through a strategic partnership with Baurs, a trusted 170-year-old Swedish multinational company, ensuring sophisticated distribution and access aligned with international retail standards.

FRELLA is rooted in Sri Lanka’s ancient healing traditions and inspired by centuries-old Ayurvedic wisdom. All FRELLA products are specially designed as holistic wellness solutions for the body, skin, hair, and soul, and focuses on providing nourishment, balance, and healthy aging through refined, modern wellness systems.

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Writer Business Services enters Sri Lanka to partner with institutions to provide information management and payments solutions

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Writer Corporation, one of India’s leading business groups, announced the launch of its subsidiary, Writer Business Services Pvt. Ltd., and the commencement of its operations in Sri Lanka. The expansion reflects Sri Lanka’s strategic importance in Writer’s regional growth plans and its role in supporting a highly regulated digital and financial services market which is currently undergoing digital transformation.

Sri Lanka’s continued focus on strengthening regulatory frameworks, digital platforms, and financial systems is shaping how institutions across banking, government, and enterprise sectors approach their business operations. There is a clear emphasis on secure, compliant, and resilient information and transaction environments that can scale with regulatory and business needs. Writer’s entry into Sri Lanka aligns with this direction, bringing global experience and a partnership-led approach to the market.

As part of its launch, Writer will establish a secure records and information storage facility in Seeduwa, Colombo. Designed to meet global standards for security, compliance, and disaster resilience, the facility will support banks, financial institutions, government bodies, and large enterprises in managing physical and digital information across its lifecycle.

Alongside information management, Writer brings established expertise in integrated payment services to support the modernization of transaction infrastructure across the banking and financial services sector. Its payments capabilities focus on strengthening availability, transaction continuity, and transparency across critical payment channels that underpin institutional reliability and customer confidence.

Writer’s digital payments offerings in Sri Lanka include end-to-end ATM and self-service terminal outsourcing, integrated channel ownership and managed services, field management applications, payment and reconciliation platforms, and remote monitoring with near real-time reporting. These solutions support financial institutions in improving uptime, strengthening governance, and enhancing operational efficiency across payment networks, in line with the continued evolution of electronic and automated payment systems.

Across information management and payments, Writer operates with an integrated portfolio spanning records and information management, business process outsourcing, cloud and digital services, data privacy, cybersecurity and enterprise payments infrastructure. These capabilities support institutions in addressing evolving regulatory requirements, digitization of legacy environments, and rising operational and cyber risks.

Writer’s local presence enables closer collaboration with clients and on-ground delivery, while supporting the development of Centres of Excellence across cybersecurity operations, SOC and NOC services, AI-led solutions, and payments operations and monitoring.

Writer’s Sri Lanka operations will be built, led, and run by Sri Lankan professionals, reflecting a long-term commitment to local talent growth and development.

Commenting on this development, Satyamohan Yanambaka, CEO, Writer Global Services Pvt. Ltd., assured Writer’s long-term commitment to the country’s digital ambitions. He said, “Writer’s entry into Sri Lanka reflects our belief that digital ambition in regulated environments must be supported by trust, sound governance, and strong execution. As institutions scale digital services, the reliability of information and payment systems, channel operations, and governance frameworks becomes increasingly important to public and institutional confidence. Our experience across information management, digital transformation, and enterprise payments enables us to support secure, large-scale financial ecosystems, with a clear commitment to building and leading these capabilities locally.”

Sri Lanka’s Digital Personal Data Protection framework raises expectations around how personal and sensitive information is secured and governed.

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