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Ambassador Chung suggests Lankan entrepreneurs build operations in US
US Ambassador Julie Chung has urged the new government to prioritise transparency, good governance, and streamline trade regulations to attract foreign investment.
Addressing the Sri Lanka Apparel Exporters Association Annual General Meeting at the Cinnamon Grand Hotel on Monday, Ambassador Chung reaffirmed the strong and enduring economic partnership between the United States and Sri Lanka.
“As the new Sri Lankan government establishes its trade and investment priorities and plans, we are encouraged by the focus on transparency, good governance, and reinforcing the importance of a welcoming business environment, as I have discussed in recent weeks with senior officials. A clean and transparent procurement process, a level playing field for all investors, and the honoring of contracts will be watched keenly by foreign investors,” she said:
She said: The apparel industry, with its focus on ingenuity, creativity, and adaptability, plays a vital role in driving the global economy. It is an industry that not only shapes trends and consumer behaviour but also fuels economic growth, creates jobs, and fosters cross-border partnerships. Today, as we gather to celebrate the remarkable contributions of the Sri Lankan apparel sector, we recognize its critical role in global trade, with innovative designs and high-quality manufacturing that continue to make an impact around the world.
Speaking of ingenuity, the U.S. athletic footwear and apparel corporation Nike was started in 1964 by a young man selling shoes out of the trunk of his car. At the time, it was a small-scale operation with big dreams. Today, Nike is a $100 billion company with nearly 80,000 employees worldwide. This incredible success story is a testament to the power of determination, innovation, and commitment to producing a high-quality product. It shows us that with vision and drive, even the most humble beginnings can lead to extraordinary global success.
I would also like to remember Martin Trust, a native of Brooklyn, a giant of the apparel industry, and a dear friend to many of you. In 1970, Trust and his wife began an apparel business out of their apartment with a $1,000 initial investment. In the 1980s, Trust introduced U.S. manufacturing expertise and production techniques to the apparel industry right here in Sri Lanka. Today MAS Holdings, one of the companies Trust helped build, has invested back into the United States with a state-of-the-art design-to-delivery hub in Asheboro, North Carolina. Their Cetwick Product Development Hub and Support Center provides high-quality American jobs to individuals working in design, digital product creation, and logistics, while supporting U.S. universities and institutes engaged in research on apparel material sciences and other technologies.
The journey of companies like Nike and MAS remind us that success in the apparel industry is driven by a blend of creativity, resilience, and innovation – qualities that are clearly evident in the Sri Lankan apparel sector. From large-scale manufacturers to local entrepreneurs, your contributions are shaping the future of the global market. And as we continue to strengthen partnerships like the one between the U.S. and Sri Lanka, I am confident that the apparel industry will remain a key driver of prosperity, growth, and opportunity for both our nations.
The apparel industry–with so many connections to partnering with and adapting U.S. innovations–plays an indispensable role in Sri Lanka’s economic growth, with clothing and textiles remaining one of the country’s leading foreign currency earners. You are an important part of the foundation on which Sri Lanka’s growth depends. In a world that is changing rapidly, I know that the road ahead will undoubtedly present some unique challenges and opportunities – all twists and turns that I trust you’ll approach with the same tenacity, creativity, and commitment to innovation.
Last week, President Trump took office and outlined a clear set of priorities to make America safer, stronger, and more prosperous. I want to really underscore that the United States is open for business, and we look forward to welcoming even more business and investments in the coming years. U.S. apparel manufacturing is vibrant and diverse and has shown remarkable strength and continuous growth in the last several years. In fact, U.S. apparel manufacturing is projected to generate $365 billion in revenue in 2025 while employing 83,000 Americans. The U.S. market is not only one of the largest and most lucrative in the world, but it also provides unparalleled access to advanced technology, skilled labor, and a robust infrastructure that can significantly enhance your own production capabilities. By establishing operations in the United States, you can benefit from reduced shipping times, lower tariffs, and the ability to respond swiftly to market demands.
Investing in the United States is not just a strategic business move; it is a step toward building a more resilient and competitive future for your companies in the global marketplace.
As we know, the apparel industry is not immune to global shocks. How will you maintain resilience and innovation in a competitive global environment? As the new Sri Lankan government establishes its trade and investment priorities and plans, we are encouraged by the focus on transparency, good governance, and reinforcing the importance of a welcoming business environment, as I have discussed in recent weeks with senior officials. A clean and transparent procurement process, a level playing field for all investors, and the honoring of contracts will be watched keenly by foreign investors. The ability of the private sector to drive growth, unhindered by red tape and excessive regulation, is crucial for fostering economic progress and will be a key factor in the months ahead.
As the global apparel industry continues to evolve, Sri Lanka’s position as a leader in quality manufacturing and ethical practices can set a positive example. The United States remains a friend and partner in Sri Lanka’s journey. I hope all of you in the room tonight agree that U.S. partnership stands out for its commitment to transparency, ethical practices, and long-term collaboration, ensuring sustainable growth and mutual prosperity for both Sri Lanka and the United States. Together, we can drive economic growth in both of our countries while setting new standards for excellence on the global stage.
News
President proposes; Speaker disposes
AKD’s request to Harsha:
Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.
Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.
Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.
The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”
Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”
The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.
The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.
Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.
The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.
Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.
The Parliament has not so far called for applications to fill the forthcoming vacancies.
by Shamindra Ferdinando ✍️
News
Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP
The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.
Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.
Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.
The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.
He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.
Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.
The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.
Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.
by Chaminda Silva ✍️
News
CID summons SJB MP for criticising education reforms
SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.
He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.
Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.
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