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An efficacious strategy to boost exports of Sri Lanka in medium term

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Some of the contents of this article are excerpts of an address delivered at the ESCAP Commission Meeting in Bangkok, Thailand.

“Innovation is the specific instrument of entrepreneurship, the act that endows resources with a new capacity to create wealth”

– Peter Drucker, globally renowned Management Guru

i) SME/MSME Sector & Global Economy

Be it a developed or advanced, developing or least developed economy, MSMEs (micro SMEs) and SMEs, are considered as the backbone of a given economy. In G-7 nations, similar to South Asia, the SME sector contributes approximately 60% of the GDP and employment, thus manifesting the seminal and pivotal nature. The Governments’ of developed and rapidly emerging economies, consistently and vehemently foster, nurture and facilitate their MSMEs/SMEs to become mid-size corporates, large corporates, regional players to global players. This is simply because that they are convinced and have patently demonstrated the fact, along with entrepreneurial ecosystem and innovations, some of them could be “Fortune 500” of tomorrow.

When one examines two of the major regional blocs that Sri Lanka is an active member i.e. SAARC and BIMSTEC, it is discouraging to note both these mega blocs consisting 8 and 7 members respectively, still lag behind most of the other regional blocs and nations. Of course, India plays an instrumental and influential role in both these blocs, thus being the largest by far as well as the most dependable and endowed anchor. The members of both these regional blocs have an average GDP per capita of less than USD 3,000 despite having a total population of two billion in SAARC and 1.8 billion in BIMSTEC. This population of each bloc is close to 25% of global population yet it contributes less than 5% of global GDP of USD 117 trillion in 2025. The average global GDP per capita is around USD 14,300 (global GDP/total population), whereas all these members are much lesser than the global GDP per capita.

The closest is actually Thailand, a founding member of BIMSTEC, having a GDP per capita of USD 7,900. The total trade of each of these two blocs is less than USD 2 trillion annually, whilst global trade is around USD 36 trillion, thus contributing only around 5% with a population of nearly 25%. Sri Lanka is no exception to this calibration and to bridge this lacuna or gap, these nations need to move up or ascend the value chain. In other words, need to create a dynamic robust entrepreneurial culture and eco system leading to innovations including digitalization to elevate these SMEs to become mid to large corporates.

This course of action could markedly enhance, including high valued exports of Sri Lanka, on medium term, to over USD 45 billion annually. Imagine the total exports of Sri Lanka in 1980 was around USD 1 billion and it increased only 18 folds over the last 45 years. It is indeed heartening and reassuring to note that the Government, today, is extending generous benefits, facilitation, assistance and privileges to MSMEs/SMEs, which has been dolefully neglected during the past several decades. What is most needed for MSMEs/SMEs, including in Sri Lanka, apart from the Governments assistance is to have an entrepreneurial culture not entrenched necessarily on “safety nets” but “trampolines”. These were the words echoed by the current President of Singapore, meaning a milieu to bounce back when fallen or when confronted with insolvency.

ii) Embryonic Potential and Dividend of SME/MSMEs

It may be apposite and prudent to place on record that not many nations in the recent history have developed without developing and fostering the SME sector. This is particularly stated in the context that the largest corporates in the world known as “Magnificent – 7” or now as “Mag – 10 ” including Broadcom, AMD and Palantire began as MSMEs (employing less than 9 employees). Today, these 10 corporates, surprisingly, directly or indirectly engaged in IT, digitalization, AI and state-of-the-art technology are having a combined market capitalization in excess of USD 24 trillion with an average age of around 35 years. Since all these 10 corporates are based in the US, its market c is much larger than the GDP of China or EU or 80% of the US, thus projecting its technological, financial and economic as well as political prowess on global stage.

Similar nations in the region of South-East Asia and East-Asia were much behind that of Sri Lanka in 1980s vis-à-vis exports but they succeeded in ascending the value chain over time, thus increasing their exports meteriocally. These nations focused intensely on high-end services and manufactured products, which in turn, wooed and attracted global players to those countries. This was mostly by committing FDIs and FIIs. One telling and potent narration was since Vietnam opened up the economy in late 1980s and joined the ASEAN in 1995, then some of the largest corporates, seriously, considered FDI as Samsung has invested well over USD 23 billion and exported products approximately USD 60 billion from Vietnam in 2025. This course of transformation did create significant employment and advent of state-of-the-art technology, in all spheres, to the country.

iii) Digitalization

This region of South-Asia, including Sri Lanka, it is critical not to miss out to embrace and espouse the 4th Industrial Revolution (4th IR) and now called 4th IR plus, if not would, literally and metaphorically, “miss out” the future. Since Sri Lanka now has an exclusive Ministry of Digital Economy, it is indispensible to extend judicious attention when transcending from non-digital to digital economy be it an SME, corporate or nation. As George Westerman, a highly respected pioneer on Digitalization from MIT stated, quote “When digital transformation is done right, it is like a caterpillar turning or metamorphosing to a butterfly, but when done wrong, all you have is a really fast caterpillar” unquote. Recent Government participation at the “AI Impact Summit 2026″ at the highest level of Government in New Delhi was a patent reflection of the significance placed by the country.

iv) Significance of Trade

With regard to Sri Lanka, it is most opportune and providential to synergize and leverage the SMEs, entrepreneurship and innovation including digitalization to markedly and appreciably boost trade (exports), thus leading to creation of employment and the standard of the economy and living, amongst others. As Benjamin Franklin, one of the Founding Fathers of the US, stated 250 years ago, quote “No country was ever ruined by engaging in trade” unquote. Today, this sagacious and politic statement is even more true than then.

Writer is a former career Ambassador, Visiting Professor & Examiner on International Economics, Board Member and Strategic Advisor. He earned the MBA from San Francisco State/University of California and PhD from Indian Institute of Technology (IIT) Delhi and is a Senior Fellow at Harvard. He could be contacted on mendissaj24@gmail.com

By Prof. A. Saj U. Mendis, PhD



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Nestlé Lanka celebrates 120 years of ‘Good Food, Good Life’ in Lanka

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Nestlé Lanka Chairman and Managing Director Bernie Stefan (left) and Ruwan Welikala, Director – Corporate Affairs and Communications, provide an overview of Nestlé Lanka’s 120-year journey in Sri Lanka at a media briefing held on March 10 at Cinnamon Life – City of Dreams, Colombo. Pic by Nishan S. Priyantha

Nestlé Lanka Limited, the ‘Good Food, Good Life’ company, celebrates 120 years of operations in Sri Lanka this year. Since its founding in 1906, the company has grown into the nation’s leading food and beverage manufacturer, producing over 90% of its locally sold products in Sri Lanka. Guided by its purpose of enhancing quality of life for today and future generations, Nestlé Lanka has touched lives through nutrition, livelihoods, and sustainability.

Over the decades, the company has offered tastier and nutritious choices tailored to local needs, from birth to old age, with micronutrient-fortified products that promote healthier living. Iconic brands such as NESTOMALT and MILO further encourage active and healthy lifestyles through sports sponsorships.

Beyond products, Nestlé Lanka engages communities through partnerships with dairy and coconut farmers, supporting skills development, responsible sourcing, and local livelihoods. Its youth empowerment initiative, Nestlé Needs YOUth, strengthens employability, while collaborations with organisations like BConnected create inclusive work pathways for people with disabilities.

Sustainability is a core focus, with a commitment to achieve net-zero carbon emissions by 2050. Recent steps include a biomass boiler commissioned in 2024 and the use of 100% renewable electricity at the Kurunegala facility. Through these initiatives, Nestlé Lanka continues to deliver on its promise of enriching lives while safeguarding the planet.

Commenting on this milestone, Bernie Stefan, Chairman and Managing Director of Nestlé Lanka said, “Celebrating 120 years in Sri Lanka is a moment of immense pride for all of us at Nestlé. This milestone reflects not only the longevity of our business, but the trust generations of Sri Lankan families have placed in us and the strong partnerships we have built across the country. For over a century, we have been committed to Working Together for Good – contributing meaningfully to the Sri Lankan economy, supporting livelihoods, and positively impacting communities, while consistently providing tasty and nutritious products that consumers love. Through iconic brands such as NESTOMALT, MILO, MAGGI to name a few, we have been part of everyday moments in Sri Lankan homes, helping nourish families and support healthier, more active lifestyles. As we look ahead, we remain firmly committed to continuing this journey with purpose, responsibility and care, enriching Sri Lankan lives every single day.”

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Sampath Bank and Apartner Bring Digital Payments to Sri Lanka’s Growing Condominium Sector

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Chirath Samarasekara, Head of Card Centre at Sampath Bank, exchanges the partnership agreement with Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, Chaminda Samarajeewa, Manager – Merchant Relationships, Digital Products and Card Sales at Sampath Bank (1st from left), and Shehan Adikari, Co-Founder and Chief Operating Officer of Apartner (1st from right), look on.

Sri Lanka’s condominium landscape continues to expand at pace, reshaping urban living across the country, yet many residential communities still rely on manual payment methods that slow down collections, delay reconciliations and limit financial visibility for both residents and management corporations.

Responding to this growing gap, Sampath Bank PLC has partnered with Apartner (Pvt) Ltd to digitise condominium payments in Sri Lanka, introducing a secure, real-time payment and settlement framework designed to support smarter, more efficient apartment living. The partnership integrates Visa’s Cybersource payment gateway with Sampath Bank’s API Manager, enabling seamless digital payment collection alongside instant outward settlements and reconciliations.

Speaking on the collaboration, Chirath Samarasekara, Head of Card Centre at Sampath Bank, stated, “Condominium living is becoming a defining feature of modern Sri Lanka and the financial infrastructure that supports it must evolve accordingly. Through Visa’s Cybersource payment gateway and our API Manager, this partnership enables real-time settlements and reconciliations that bring greater transparency, control and predictability to condominium payments while offering residents a secure and convenient digital experience.”

Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, commented, “This partnership with Sampath Bank allows us to remove one of the biggest operational pain points faced by condominium communities. Real-time payment visibility and automated reconciliation give management corporations confidence in their cash flows while residents gain convenience, security and peace of mind through a platform built for everyday living.”

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A lifetime of tickets: Kalawana retiree preserves a 76-year long lottery trail

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Some of lotteries in Ekanayake’s collection

For many Sri Lankans, buying a lottery ticket is a daily ritual. Some do it out of habit; others try their luck from time to time. Morning crowds gathered around lottery kiosks across the country are testimony to the enduring appeal of the small slip of paper that promises fortune.

But in the quiet village of Dolahena in Kalawana lives a man whose relationship with the lottery stretches far beyond hope of a windfall.

At 88, retired postal worker E. M. D. Bandara Ekanayake has spent more than seven decades buying lottery tickets — and, more remarkably, preserving them. His collection, which dates back to the early years of organized lotteries in Sri Lanka, may well be one of the most extensive personal archives of lottery tickets in the country.

“I started buying lottery tickets in 1962, the year the National Lottery Board was established,” Bandara told the Sunday Island. “At that time a ticket cost only 50 cents, and the top prize was about one lakh of rupees.”

His fascination with lotteries, however, predates the National Lottery Board itself. Bandara recalls purchasing his first ticket in 1959 when a lottery was held in connection with an industrial exhibition.

“From then until today, I have been buying five tickets at a time,” he said. “For about 76 years I have continued this habit.”

Unlike most lottery buyers who discard their tickets once the draw is over, Bandara carefully preserved every ticket he purchased. As a result, he now possesses lottery tickets issued by both the National Lottery Board and the Development Lotteries Board from 1962 to the present.

“I don’t think anyone else has such a collection,” he said with a quiet smile.

Ironically, his decades-long participation has not brought him extraordinary winnings. “Apart from small prizes, the biggest amount I have ever won is Rs. 10,000,” he admitted.

Yet Bandara insists that winning has never been his primary motivation.

“I buy lottery tickets with great interest and enthusiasm, but not because I expect to win,” he said. “The lottery boards contribute a great deal to the development of this country. Funds raised through lotteries support education, health and other development work. I feel a deep sense of satisfaction knowing that I too contribute, even in a small way.”

His dedication to buying tickets has endured despite the difficulties he once faced in obtaining them.

“In the early days there were no lottery sales outlets in the Kalawana area,” Bandara recalled. “The only place we could buy them was at Sinnaiah Stores in Nivitigala. I used to travel by bus to buy the tickets and bring them back. Sometimes I would send someone else to buy them for me.”

Over time, lottery sales expanded to Kalawana itself. Bandara remembers that a trader named P. D. T. Lathpadura Mudalali began selling lottery tickets at the Ranasinghe Hotel, making it easier for locals like him to buy them.

E. M. D. Bandara Ekanayake

From then on, Bandara purchased his tickets locally, but the practice of carefully preserving them remained unchanged.

His passion for collecting does not stop with lottery tickets. Bandara has also maintained an extensive collection of newspapers over the years. Even bus tickets from his journeys have been preserved alongside his treasured lottery slips.

The unusual collection recently drew the attention of officials from the National Lottery Board, who visited Bandara’s home bearing gifts after learning about his decades-long dedication.

For Bandara, however, the recognition is secondary to a larger sense of purpose.

“I will continue buying lottery tickets as long as I live,” he said. “At the same time, I try to help others and engage in social service whenever I can.”

His commitment to community welfare is not merely rhetorical. Using his own funds, Bandara has already built a community hall for the benefit of residents in his village.

“I hope to continue doing social service in the future as well,” he said.

In an era when lotteries are often associated with dreams of instant wealth, Bandara’s story offers a different perspective — one of quiet dedication, civic-mindedness and personal discipline.

For him, the value of a lottery ticket lies not in the promise of riches but in the small contribution it makes towards the collective good.

And after 76 years, that belief remains unshaken.

By Upendra Priyankara Jathungama

 

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