Business
Australian companies continue to see Sri Lanka as a highly prospective place to invest and do business, says High Commissioner
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= Australia has provided SL more support than ever this year, including through $75 million in development funding in 2022-23
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= There is great potential in GOSL’s plan to become a regional hub for international education
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= Permanent migration visas available in 2022-23, has increased legitimate migration pathways to Australia
by Sanath Nanayakkare
As a friend and neighbour, Australia will continue to support the people of Sri Lanka in any way we can, and Australian companies continue to see Sri Lanka as a highly prospective place to invest and do business,” the newly designated Australian High Commissioner to Sri Lanka Paul Stephens told The Island Financial Review during an exclusive interview with him.
“Australia and Sri Lanka enjoy strong economic and trade cooperation, which has continued this year despite the economic challenges faced by Sri Lanka. Australian companies continue to see Sri Lanka as a highly prospective place to invest and do business, for example in renewable energy, mineral resources, agrifood, water infrastructure, and education partnerships,” he said.
Further speaking Paul Stephens said:
“Under Australia-Sri Lanka Trade and Investment Framework Arrangement (TIFA), we hold Joint Trade Committee (JTC) meetings between senior officials annually (last held in 2021) and regular working level meetings every few months. We expect to continue senior bilateral engagement on trade and investment, including with a JTC hosted by Australia later this year.”
“I’m pleased to say there are now more than 30 partnerships between Australian education providers and Sri Lankan institutions – and this number continues to grow. Australia sees great potential in the Sri Lankan Government’s plan to become a regional hub for international education. The recent interim budget announcement to allow foreign universities to establish campuses in Sri Lanka is a strong, positive step towards growing Sri Lanka’s international education sector. Australian providers are keen to be part of this journey. The technical and vocational education sector is also an emerging growth area for Sri Lanka, and one where Australia has deep expertise and experience. We continue to work with the Sri Lankan Government to consider how best to collaborate in this space. For example, in partnership with the Sri Lankan Ministry of Skills Development and Vocational Training, Australia has been a strong supporter of programs that strengthen skills across the full value chain of the tourism sector. This work is carried forward through Australia’s $14.4 million Skills for Inclusive Growth program, which has been in operation since early 2017.”
“Australian society has been fortunate to benefit from a rich mix of cultural backgrounds and heritage. As reported in the most recent Australian census, since 2021 more than half of Australia’s population was either born overseas themselves or had a parent who was born overseas. Strong people-to-people links are a bedrock of the Australia-Sri Lanka relationship. Many Sri Lankans have chosen to make Australia their home and they have made outstanding contributions to Australia’s diverse, multicultural society. I have no doubt this will continue in the future. Australia’s focus is on supporting legitimate pathways to migration, and of course, discouraging Sri Lankans from making dangerous journeys by sea. Australia recently announced an increase in the number of permanent migration visas available in 2022-23, with a focus on meeting skills shortages in regional areas. This step has increased the legitimate migration pathways available to Australia, including for Sri Lankans.”
“Australia remains committed to working practically and constructively with Sri Lanka to advance its commitments toward reconciliation and transitional justice and to meet its international human rights obligations. Australia has always had transparent and open discussions with the Sri Lankan Government on our strong support for international human rights norms. While Sri Lanka’s current economic situation is challenging, there is good evidence that durable reconciliation is a key underpinning factor for long-term political and economic stability. While we welcome a central role for strengthened, independent domestic institutions that have the trust of affected communities, we also continue to encourage Sri Lanka to engage positively with international human rights processes. We do also consider the ongoing impacts of the conflict, and the role we can play in helping to mitigate these, through our development assistance to Sri Lanka. Among other initiatives, in recent years Australia has provided support for livelihoods and psycho-social support for affected communities in the North and East, and supported a range of community-based organisations to lead reconciliation and economic development at the local level. We will continue to look for opportunities to support Sri Lanka’s reconciliation journey.”
“I was very pleased to see Sri Lanka and the IMF work together to recently finalise the IMF staff-level agreement. This is a positive step in Sri Lanka’s economic recovery and Australia welcomes the strong and productive engagement by senior officials in this process. We continue to encourage the Sri Lankan Government to follow through with the implementation of any necessary reforms recommended by the IMF, as part of returning Sri Lanka to a stable and prosperous economic path. I am also pleased Australia has provided Sri Lanka more support than ever this year, including through $75 million in development funding in 2022-23, to help alleviate the impacts of the crisis on the most vulnerable. As a friend and neighbour, Australia will continue to support the people of Sri Lanka in any way we can.”
“Australia’s Indo-Pacific vision is for an open, inclusive and resilient region underpinned by rules, norms and respect for sovereignty. As an Indian Ocean neighbour, Australia wants Sri Lanka to be stable, resilient and prosperous, including by safeguarding its sovereignty and democratic values. Australia and Sri Lanka have long had productive and mutually beneficial collaboration in regional and multilateral forums, including the UN, the Commonwealth and the Indian Ocean Rim Association. We will continue to work together and support Sri Lanka’s engagement in these institutions, which we see as important mechanisms for frank and open discussion and practical action in areas of common interest.”
When asked to tell our readers about his diplomatic career, his family, the food he loves to eat and what he enjoys doing in his leisure time, the High Commissioner said,” I have been fortunate to have had a varied career which has included postings in Stockholm (where I was Ambassador), Bangkok, New York and Brasilia, in addition to Colombo. My wife Christina and I have three children, twin boys Cody and Daniel and a daughter Bella. All three are adults and remain in Australia where they are working. We are looking forward to having them visit us here in Sri Lanka. I am an avid sports follower, especially of cricket and Australia’s indigenous football code, Australian Rules. I played grade cricket for many years in Australia but have more recently focused on distance running, while also enjoying bike riding, swimming and going to the gym. There are very few foods I don’t like but I do love spicy cuisine and am looking forward to experiencing Sri Lanka’s many culinary delights, especially fish and fresh fruits!
When asked if there’s a motto that best describes how he views and approaches life, he said,” I don’t have a special motto, but I think it’s important to be nice to people and stay calm.”
Business
Sri Lanka’s apparel sector records 5.42% growth for January-November 2025: November slight dip
Sri Lanka’s apparel industry delivered a robust performance during the first eleven months of 2025, with cumulative exports reaching US$4,571.99 million marking a 5.42% increase over the same period last year, according to data released today by the Joint Apparel Association Forum (JAAF).
Sri Lanka’s total apparel exports for November 2025 reached US$367.60 million, representing a slight decrease of 1.96% compared to US$374.94 million in November 2024.
The monthly performance showed mixed results across key markets: United States: US$152.32 million (up 5.79% from US$143.98 million), European Union (excluding UK): US$119.61 million (up 3.35% from US$115.73 million), United Kingdom: US$43.63 million (down 13.83% from US$50.63 million), Other Markets: US$52.04 million (down 19.44% from US$64.60 million)
Strong cumulative performance: January-November 2025
Despite the November softness, cumulative apparel exports for the eleven-month period from January to November 2025 demonstrate solid growth, reaching US$4,571.99 million—a 5.42% increase over the corresponding period in 2024 (US$4,336.84 million).
Year-to-Date Performance by Market:
European Union (excluding UK): US$1,435.39 million (up 13.07%)
Other Markets: US$742.98 million (up 5.75%)
United States: US$1,769.08 million (up 1.73%)
United Kingdom: US$624.54 million (down 0.22%)
Commenting on the export data, JAAF stated “The 5.42% growth in our cumulative exports for the first eleven months of 2025 reflects the resilience and adaptability of Sri Lanka’s apparel sector in navigating a challenging global environment. While we experienced a modest 1.96% decline in November, this should be viewed within the broader context of our strong year-to-date performance.
“Particularly encouraging is our 13.07% growth in the European Union market, which demonstrates the success of our strategic focus on strengthening relationships with EU buyers and meeting their increasingly stringent sustainability and compliance requirements. Similarly, our continued growth in the US market, despite tighter margins, shows that Sri Lankan manufacturers remain competitive on quality, delivery, and ethical manufacturing standards”.
Business
Sri Lanka highlighted as a popular tourism hotspot among South Korean travelers
Sri Lanka Tourism, in collaboration with the Embassy of Sri Lanka to the Republic of Korea, is providing support for the two VVIP South Korean Buddhist delegations visiting the country, demonstrating solidarity and strengthening cultural and religious ties with Sri Lanka.
The first delegation included Anunayake thero of Jogye order , South Korean chief Buddhist monks and devotees arrived in Sri Lanka consisting of 120 , on 01st December 2025, with the intention of undertaking a pilgrimage tour and highlighting Sri Lanka’s importance as a major Buddhist attraction for Buddhists around the world.
As same as the first delegation, the second VVIP Buddhist delegation which arrived on the 10th of December, 2025, was also given warm and a colorful welcome at the Bandaranaike International Airport, complete with a Cultural Dance troupe and a group of Sri Lankan children to greet them upon their arrival, making them feel at home and happy to see such a sensational sight. Ms . Thanuja Muniweera , Deputy Director and also the officer in charge of the Korean Market , was there to welcome the much revered guests . The delegation consisted of 150 visitors including both priests and devotees.
Led by Ven . Hyeil, , Chief priest of Haeinsa Temple , the main purpose of this visit is to show Sri Lanka as a welcoming and culturally vibrant destination. This will be a great opportunity to show the importance of the Korean Market as an emerging market and also promote Buddhist and Pilgrimage Tourism. South Koreans are known to be travelling in large numbers, including December 2025. The South Korean Buddhist delegation is one such example.
Business
Sunshine Holdings joins S&P Sri Lanka 20 Index
Diversified conglomerate Sunshine Holdings PLC (CSE: SUN) has been included in the S&P Sri Lanka 20 Index, following the 2025 year-end index rebalance announced by the Colombo Stock Exchange (CSE) and S&P Dow Jones Indices. The inclusion takes effect from 22 December 2025, after market closing on 19 December 2025.
The S&P Sri Lanka 20 Index represents the 20 largest and most liquid companies listed on the CSE, selected based on stringent criteria including market capitalisation, liquidity, financial viability and sustained profitability. Constituents are weighted by float-adjusted market capitalisation, with a single-stock caps to ensure balanced representation.
Commenting on the milestone, Sunshine Holdings Group Chief Executive Officer, Shyam Sathasivam, said, “Our inclusion in the S&P Sri Lanka 20 is the result of more than five decades of collective effort and perseverance by our people, past and present, who have built Sunshine Holdings into the institution it is today. This recognition reflects the strength of our foundations, the discipline with which we have grown, and the consistency of our performance across business cycles. As we move forward, we remain focused on building resilient businesses, upholding strong governance standards and delivering sustainable long-term value to all stakeholders.”
The S&P Sri Lanka 20 Index is constructed in line with global index methodologies and international best practices, with all constituents classified under the Global Industry Classification Standard (GICS®). Eligibility requires a minimum float-adjusted market capitalisation of Rs. 500 million, a six-month median daily value traded of Rs. 250,000, and positive net income over the twelve months preceding the rebalancing reference date.
Sunshine Holdings’ inclusion in the S&P Sri Lanka 20 reflects the Group’s long-term capital markets journey, evolving from a closely held family enterprise into a widely held blue-chip listed company. Over the years, the Group has focused on building institutional credibility, strengthening governance standards and expanding its shareholder base, resulting in a current market capitalisation of approximately LKR 70 billion, underscoring its scale and relevance within the Colombo Stock Exchange.
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