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Beyond the Echo Chamber: Why diversity is Sri Lanka’s ultimate strategic asset

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In a nation standing at a crossroads of economic recovery and social reconciliation, the dialogue surrounding diversity and inclusion has never been more critical. Moving beyond its frequent characterization as a Western corporate buzzword, a recent high-level discussion framed diversity as a cornerstone for Sri Lanka’s future prosperity and unity. The second day of the International HR Conference, hosted by the Chartered Institute of Personnel Management (CIPM) Sri Lanka on June 3rd at the Monarch Imperial in Kotte, convened a powerhouse panel of business leaders to dissect the theme, “Diversity for Creativity: Strengthening Social Cohesion.” The conversation that unfolded was a masterclass in shifting the narrative from diversity as a compliance metric to diversity as a strategic, non-negotiable imperative for innovation and national healing.

The panel, expertly moderated by CIPM President and Siam City Cement Lanka’s Chief People Officer, Priyantha Ranasinghe, featured a formidable lineup of minds: Rajendra Theagarajah, the astute Independent Non-Executive Chairman of First Capital Holdings PLC; Sabrina Esufally, the dynamic Managing Director of Hemas Consumer Brands; Tamali Rodrigo, Partner and Head of Restructuring and Corporate Governance at KPMG Sri Lanka & Maldives; and Shalin Balasuriya, the visionary Co-Founder and Group Director of Spa Ceylon Ayurveda Wellness. Together, they argued that for Sri Lanka to thrive, its boardrooms, product lines, and social fabric must begin to reflect the rich tapestry of its people.

The Unassailable Business Case:Diversity as a Performance Driver

Priyantha Ranasinghe initiated the discourse by acknowledging a crucial gap: while conversations around Diversity, Equity, and Inclusion (DEI) are gaining traction in Sri Lanka, the nation’s corporate sector lags significantly behind global benchmarks in implementation. He set a powerful tone, urging leaders to transcend performative gestures and embed DEI into the very DNA of their corporate strategy.

Rajendra Theagarajah, drawing upon decades of experience in the banking sector, immediately gave this call a tangible form. He argued that intentional diversity, particularly in leadership, is a direct catalyst for superior decision-making. “The quality of a decision fundamentally improves when it is informed by a variety of perspectives,” he asserted. He shared a compelling case study from his career where the strategic recruitment of young people from rural communities to serve those same communities resulted in a more empathetic, effective, and ultimately profitable service model. The lesson was clear and profound: “Diversity must mirror your stakeholders.” For a business to truly understand its market, it must first understand the people within it.

Shalin Balasuriya, whose brand Spa Ceylon has taken Sri Lankan wellness to the global stage, echoed this sentiment. He emphasized that authentic market intelligence is not born from spreadsheets and data analytics alone. “Cultural insights don’t come from data—they come from people. From lived experiences,” he explained. He contended that building an internal team that reflects the consumer base is the first step to genuine innovation. Such an inclusive environment, he argued, not only sparks creativity but also cultivates profound team cohesion and loyalty—a crucial asset in any competitive industry.

For Sabrina Esufally, DEI is not a “nice-to-have” but a core driver of market growth. “If you treat diversity as a compliance, tick-box exercise, you will never unlock its true, transformative value,” she warned. She detailed how Hemas Consumer Brands strategically repositioned its innovation pipeline by asking a simple yet revolutionary question: “Who is the market not solving for?” This inquiry led them to the “margins,” where immense growth opportunities lay hidden in plain sight. By identifying and addressing the unmet needs of underserved populations—such as the lack of access to affordable sanitary products in rural areas or disparities in oral healthcare—the company unlocked new revenue streams while simultaneously fostering greater equity. “Growth happens at the margins,” Esufally declared, positioning inclusion as a powerful engine for business expansion.

Bringing a rigorous consulting perspective, Tamali Rodrigo underscored that in the realm of professional services, cognitive diversity is not merely advantageous—it is essential. “Diverse teams consistently deliver better, more robust solutions. It’s not optional for success,” she stated. However, she cautioned that building such teams requires a structured, deliberate approach. This includes actively managing resistance to change, codifying inclusive policies, and—critically—holding teams accountable through DEI-related Key Performance Indicators (KPIs). “Inclusion isn’t a special project,” Rodrigo insisted. “It must be embedded in how we work every single day.”

The Social Imperative:
Weaving Cohesion from the Ground Up

The discussion then pivoted from the boardroom to the foundational pillars of society, exploring how true inclusion must be nurtured long before an individual’s first job interview. The panelists unanimously agreed that the roots of division, and therefore the seeds of unity, are planted in childhood.

Rajendra Theagarajah spoke with passion about the urgent need to start at the level of early childhood education. He described Rotary-led initiatives that train preschool teachers by intentionally bringing together educators from different regions, ethnicities, and linguistic backgrounds. The transformation was often profound. “By the third day, they were in tears, hugging each other,” he recounted. “It’s not hate that divides us—it’s unfamiliarity.” He also pointed to sports, citing events like the Harmony Cup cricket tournament, as powerful platforms for dismantling social barriers by fostering interaction and shared purpose among youth from different communities.

Shalin Balasuriya reinforced this, identifying the family unit as the primary incubator for inclusive thinking. “Home is where children first learn about difference—about festivals, cultures, and empathy,” he said. He recalled his own formative experiences in scouting and school sports, which enabled him to build friendships that transcended ethnic and social boundaries. “Interaction is the antidote to division,” he concluded.

Sabrina Esufally offered a sharper critique of the current system, arguing that diversity must be normalized, not spotlighted as an exception. “When difference is constantly presented as ‘other,’ it inevitably becomes a point of contention,” she explained. She condemned the structural segregation present in the education system, where children from Sinhala and Tamil backgrounds can attend the same institution for years without ever meaningfully engaging. “We need decisive policy changes to undo this structural separation,” she insisted, calling for systemic reform in curriculum, public policy, and leadership mindsets to construct a genuinely inclusive Sri Lanka.

From Policy to Purpose:
Architecting an Inclusive Corporate Culture

Translating noble intentions into organizational reality requires a deliberate and sustained effort. Tamali Rodrigo shared a powerful example from KPMG, where a mentorship program paired a new recruit who had communication difficulties with a supportive team. By placing him in a role that leveraged his analytical prowess, he thrived, ultimately uncovering significant financial irregularities that others had missed. “We would have missed his extraordinary talent had we not consciously created the space for him to succeed,” she reflected.

This principle of adapting the environment to the individual, rather than forcing the individual to conform, was a recurring theme. Shalin Balasuriya shared Spa Ceylon’s success with an inclusive training program for hearing- and speech-impaired individuals. With the right support systems, these employees not only met but exceeded performance expectations.

The conversation also tackled the more sensitive, yet crucial, dimensions of inclusion. Esufally urged companies to move beyond creating passive ‘safe spaces’ for LGBTQ+ employees and instead foster a culture of genuine celebration. “When people are forced to hide a part of who they are, you lose their full potential, their full creativity,” she stated. “Difference isn’t a liability—it’s your competitive edge.”

To ensure these efforts are not merely anecdotal, Theagarajah advocated for robust data practices to drive accountability. “Track your metrics on gender, ethnicity, disability, and representation at all levels. Tie these DEI metrics directly to performance evaluations and leadership bonuses,” he urged. “In progressive global markets, DEI reporting directly impacts investor confidence and even share price. It’s not just ethical—it’s strategic finance.”

A Cohesive and Creative Nation

The path to a more innovative, resilient, and cohesive Sri Lanka is paved with intentional inclusion. It requires leaders who are brave enough to challenge the status quo, to look beyond their echo chambers, and to design organizations and policies that reflect the nation’s true diversity.

The panelists’ message was unequivocal: diversity is not a soft, feel-good initiative but a hard-edged strategic tool. It is the key to unlocking new markets, building resilient teams, making smarter decisions, and healing societal rifts. As Sabrina Esufally powerfully summarized, “Innovation doesn’t come from sameness.” For Sri Lanka, embracing this truth is not just smart business—it is the most vital investment it can make in its future.



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Pan Asia Bank’s overall assets soar over Rs. 300 Bn and achieve a PAT of Rs.4 Bn

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Aravinda Perera- Chairman & Naleen Edirisinghe - Director CEO of Pan Asia Bank

Pan Asia Banking Corporation PLC reported a strong financial performance for 2025, marking a year in which the Bank reinforced its position among Sri Lanka’s steadily expanding financial institutions. The Bank’s overall asset base surpassed Rs. 300 Bn, reaching Rs. 308.02 Bn its largest balance sheet to date while Profit After Tax amounted to Rs. 4.01 Bn. Earnings Per Share stood at Rs. 9.05, reflecting a solid core earnings base and disciplined balancesheet execution during a year of gradually easing macroeconomic pressures.

Total operating income grew to Rs. 16 Bn, supported by resilient net interest generation and sharp growth in non-interest revenue. Even though benchmark interest rates trended downward for much of the year reducing gross interest income at the market level, the Bank protected its core income through proactive liability repricing, careful funding management, and the retirement of high-cost borrowings. A healthier deposit mix supported by CASA growth helped reduce interest expenses by 4%, allowing the Bank to maintain profitability despite softer yields on loans and government securities.

A clearer picture of Pan Asia Bank’s true performance emerges once the nonrecurring sovereign debt gain recorded in 2024 is set aside. On this normalized basis, 2025 stands out as the Bank’s strongest year of underlying profitability in its 30-year history. Underlying Profit After Tax surged 35% to Rs. 4.01 Bn, while underlying Profit Before Tax climbed an impressive 52%, highlighting the Bank’s accelerating earnings momentum. Underlying EPS rose 35% to Rs. 9.05, supported by improved returns, with underlying ROE and ROA rising by 169 and 52 basis points, respectively. Together, these gains reflect the depth of the Bank’s core business strengths, broadbased revenue growth, and disciplined margin management during a year shaped by declining interestrate conditions.

Income diversification also played a pivotal role. Net fee and commission income expanded by 37%, supported by heightened lending activity, improved trade flows, stronger card-related transactions, and remarkable growth in remittance-related business. These developments helped offset the moderation in trading gains, which were affected by lower capital gains on unit trusts and government securities. A derecognition gain of Rs. 278.63 million on FVOCI assets and reduced marktomarket losses helped stabilize noninterest income, allowing the Bank to sustain earnings despite a more subdued trading environment.

Credit quality improved significantly. The Stage 3 loan ratio declined to 1.73% from 3.10% a year earlier one of the greatest improvements within the sector—reflecting the Bank’s continued emphasis on highquality underwriting, better borrower monitoring, and an effective earlywarning framework. Impairment expenses normalized following the unusually large reversal seen in 2024. ( Pan Asia Bank)

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SriLankan Cargo secures another South Asian First with IATA CEIV Live Animals Certification

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The most recent consignment of seven bovines from Lahore for the Department of Animal Production and Health.

SriLankan Cargo, the air freight arm of SriLankan Airlines, has secured another regional first by becoming the first airline in South Asia to be awarded the Center of Excellence for Independent Validators (CEIV) for Live Animals Logistics Certification from the International Air Transport Association (IATA). Regarded as the premium global standard for the air transport of live animals, the certification serves as a powerful pledge to pet parents, livestock owners, conservationists and all shippers that SriLankan Cargo will transport animals in humane, safe and stress-free conditions across its worldwide network.

Chaminda Perera, Head of Cargo at SriLankan Airlines, commented on the achievement, stating, “Earning the IATA CEIV Live Animals Certification underscores our dedication to animal welfare and operational excellence, ensuring safer handling, trained teams and peace of mind for our customers.”

Sheldon Hee, Regional Vice President, Asia-Pacific, said, “The CEIV Live Animals certification is not only about compliance, but ensures the safety and welfare of live animals transported by air. This is particularly relevant as this is a market that continues to grow with more than 200,000 live animal shipments globally in 2025. We are pleased to see SriLankan Airlines achieve this important certification and ensure the implementation of the highest standards across the supply chain.”

The certification stands out for placing animal safety and welfare at the forefront, supported by best-in-class infrastructure and operational excellence. Achieving it requires a rigorous, multi-step process of training, assessment, validation, certification and recertification, ensuring that only organisations fully compliant with the IATA Live Animals Regulations and the Convention on International Trade in Endangered Species gain membership in this highly exclusive circle of airlines, which currently numbers 12 worldwide.

SriLankan Cargo remains firmly committed to upholding the highest standards stipulated in the IATA Live Animals Regulations throughout the shipment lifecycle, from acceptance and handling to loading, transportation and final delivery. Working closely with veterinary authorities, ground handlers and cargo partners, the airline ensures every check box relating to welfare and compliance is consistently ticked.

SriLankan Cargo also operates purpose-built facilities with precise temperature control procedures and robust contingency plans, enabling animals to travel in optimal conditions, including during transit. Dedicated CEIV-trained team members oversee each movement, safeguarding comfort, wellbeing and regulatory adherence at every stage.

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Prime Lands Residencies reports strong earnings growth

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Prime Lands Residencies PLC (CSE: PLR) reported strong financial performance for the quarter ended 31 December 2025, keeping shareholder expectations intact.

The company’s share price increased by more than 40% over the last three months, reflecting heightened investor confidence. Market expectations remained elevated given the scale of project launches over the past two years, including three towers in The Border Colombo (484 units), J’adore Negombo (333 units), The Golf Colombo 08 (64 units), Mon Vie Colombo 05 (349 units), Prime Colombo 9 (559 units), and The Seasons Colombo 08 (44 units).

Quarterly revenue grew by 43% year-on-year to Rs. 2.80 billion, compared to the corresponding period last year. This growth was primarily driven by accelerated construction progress in Towers C of The Border Colombo project, together with first time revenue recognition from The Seasons Colombo 08. Revenue from the newly launched remaining projects is yet to be recognized in line with construction milestones and the company’s prudent revenue recognition policy, establishing the growth potential in earnings in upcoming periods.

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