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Business as usual no longer tenable for Sri Lanka given extremely difficult fiscal conditions: Treasury Secretary

Published

3 years ago

2023/09/7

Panel discussion at the Serendipity Knowledge Programme (SKOP) hosted by the Asian Development Bank (ADB) at Shangri La Colombo on Tuesday

By Sanath Nanayakkare

Given the extremely difficult fiscal conditions Sri Lanka is experiencing, there is no room for complacency or reversal of the key economic reforms underway because business as usual is no longer tenable for Sri Lanka, Treasury Secretary Mahinda Siriwardana warned in Colombo on Tuesday

He said so while speaking at the Serendipity Knowledge Programme (SKOP) which is an Asian Development Bank (ADB) platform dedicated to identifying knowledge solutions for Sri Lanka’s development challenges. The event was held at Shangri La Colombo where the welcome address was delivered by Kenichi Yokoyama, Director General, South Asia Development, ADB. The keynote presentation on SOE Reform: Lessons from other countries was delivered by Dag Detter, former President of Stattum and Director Ministry of Industry Sweden. Suresh Shah, Chairman, SOE Restructuring Unit was among the eminent panelists that delved deep into SOE reforms: Challenges and Opportunities for Sri Lanka.

Speaking further the Treasury Secretary said:

Treasury Secretary Mahinda Siriwardana

“Divestiture of SOEs is being discussed at a time Sri Lanka is experiencing its worst economic crisis since its independence which led to far-reaching economic and social ramifications. The government has taken a series of measures to stabilize the economy and gradually restore economic growth in a sustainable manner going forward while implementing critical economic reforms. In the present context, there is noroom for complacency and there is no margin for error by reverting to unsustainable policies and practices of the past.”

“As in many developing and emerging economies Sri Lanka’s SOEs have contributed to the ongoing crisis although they have shown a mixed record of their contribution to the economy. While some sectors like state-owned banks make an important contribution to the economy, several SOEs in sectors such as energy and transport have created persistent losses. SOEs are vulnerable to mismanagement and corruption because of potential conflicts within the ownership and the policy-making functions of the government and undue political influence on their policies, appointments and business practices. Also, their internal controls, monitoring and the government’s frameworks are inadequate to deal with these issues. Many of these institutions have pursued a monopolistic position in the market hindering private investment. Price-fixing, inefficient management and poor entrepreneurship have weakened public finances turning these institutions into national burdens dependent on the tax payers, therefore the success or the failure of these SOEs has had a significant impact on the economy as a whole. Highly loss-making SOEs such as CPC, CEB and Sri Lankan Airlines pose significant fiscal issues as their losses have to be addressed through Treasure transfers or public debt. Loss-making SOEs also create vulnerabilities in the banking system because the accumulated debt is often funded by the state banks. This has created a complex interaction between the balance sheets of these institutions, the banks and the government. All these challenges require comprehensive reforms which have been delayed for a prolonged period and have resulted in significant macroeconomic vulnerabilities. As indicated in the interim budget speech in 2022, these difficult but necessary measures pertaining to SOEs will no doubt pose challenges in its implementation, but failing to do so will have catastrophic risks in financial stability and even higher taxation burdens in the future. This is why the restructuring of SOEs is critical in terms of government revenue and expenditure. In making the necessary reforms, learning from the success stories from the neighboring economies and the rest of the world would be of great importance to us. Globally, countries have increasingly moved away from state-led development strategy, encouraging private sector to engage in business with the government making the proper policies and regulatory frameworks without compromising the long-term interests and the wellbeing of the public. To achieve these objectives the government is making progress in several key reform areas. One of them is the cost-reflective pricing of utilities and petroleum products, Sri Lanka being a net energy importing country. However, this creates hardships to the poor and the vulnerable. So the government has chosen the strategy of providing direct cash transfers and other measures of relief to those objectively identified segments of the society instead of underpricing utilities across the board. This approach will also minimize inefficient energy use by more affluent consumers.”

“Reform number two is balance sheet restructuring. The foreign-currency denominated loans guaranteed by the sovereign on behalf of CPC and most of the same of CEB, Sri Lankan Airlines and RDA will be restructured eliminating the risks and mismatches to the fiscal sector.”

“Reform number three is introducing competiveness in key economic sectors by driving productivity of these enterprises. An example for this is Sinopec, another player that entered the petroleum retail space last week. At the same time, the government has undertaken an initiative to unbundle operations at the CEB where ADB is playing a key role. This will lead to greater operational and financial indicators of electricity generation and distribution activities enabling competition within the entity, improved transparency through bulk supply transaction accounts to get better outcomes for consumers as a whole. The automation of obsolete manual reading of meters would benefit consumers through predictable and timely readings while improving efficiency of the workforce.”

“Divestment of non-strategic assets is the key reform number 4 to drive economic activity in this area. The approval of the Cabinet has already been given for divestment of several entities and transaction advisories have been appointed to support the programme in a transparent, professional manner.”

“Reform number five is governance and legislation to avoid the recurrence of financial vulnerabilities in SOEs. In this exercise, an overarching legal framework will be brought in to ensure proper appointments of SOE board members and other senior management, regular publishing of financial reports, due diligence over procurements and the upholding of corporate governance principles.”

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SLEIS 2026 to examine how Sri Lanka can strengthen its place in Asia’s growth networks

Published

12 hours ago

2026/09/16

Sahan Weerasooriya

Ambassador Akio ISOMATA / Chathuranga Abeysinghe / P.D. Singh

As Asia continues to account for a growing share of global economic activity, Sri Lanka faces an important opportunity to strengthen its links with regional trade networks, supply chains and economic corridors. How the country can make better use of these connections to attract investment, expand trade and strengthen its position in regional value chains will be among the key questions at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

Titled “Linking Sri Lanka to Asia’s Growth Networks: Trade, Corridors, and Value Chains,” the session will examine the opportunities for Sri Lanka to deepen its integration with the wider Asian economy and build stronger connections with regional and global markets.

The session keynote will be delivered by P.D Singh – Chief Executive Officer, India and South Asia, Standard Chartered Bank. He will be joined for a panel discussion by Chathuranga Abeysinghe – Deputy Minister of Industry and Entrepreneurship Development, Akio ISOMATA – Ambassador of Japan to Sri Lanka, MASAAKI Kawabata – Chairman – Toyota Lanka (Private) Limited, and Ravi Jayawardena – Group Chief Executive Officer-Maliban Biscuits (Private) Limited. The session will be moderated by Ms. Subhashini Abeysinghe – Research Director- Verité Research.

For Sri Lanka, stronger regional integration can open opportunities beyond traditional export markets. Greater participation in regional supply chains, improved trade connectivity and closer links to economic corridors can support investment in areas such as logistics, manufacturing, export services and other sectors connected to international production networks.

The discussion will consider what Sri Lanka needs to do to strengthen its position within these networks, including improving trade connectivity, attracting investment and creating a business environment that enables companies to participate more effectively in regional and global value chains.

It will also look at the experience of businesses and international institutions operating across the region, providing perspectives on how companies assess markets, build supply chains and identify locations for investment. With supply chains and investment flows increasingly shaped by regional connectivity, the session will also consider the partnerships and strategies needed to position Sri Lanka as a more competitive participant in Asia’s growth networks, while creating opportunities for trade, investment, innovation and economic growth.

The session will form part of the second day of SLEIS 2026, held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy.”

The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).

Business

AAC launches seat belt safety awareness initiative with RDA Colombo

Published

12 hours ago

2026/09/16

Sahan Weerasooriya

The Automobile Association of Ceylon (AAC), in collaboration with the Road Development Authority (RDA) and Police – Traffic Division, will conduct a special Road Safety Awareness Programme to promote the importance of wearing seat belts in vehicles specially on the express highways in order to reduce road fatalities and serious injuries.

The official handing-over ceremony took place at the Chairman’s Office of the Road Development Authority on 14th September 2026, where specially designed Seat Belt Safety Hanging Tags & Stickers prepared by the Automobile Association of Ceylon were handed over to the RDA for distribution to motorists at entry points to the expressways.

The initiative is being conducted in connection with the seat belt law coming into effect on 19th September 2026 and is intended to create greater public awareness of the importance of wearing seat belts in both the front and rear seats of vehicles.

Representing the Automobile Association of Ceylon at the ceremony Dhammika Attygalle, President; Prasanna De Zoysa, Sectional Chairman – Road Safety; and Devapriya Hettiarachchi, Secretary, Senior Superintendent of Police -Traffic Sisira Peththrathanthri, participated in the programme.

The Automobile Association of Ceylon has consistently maintained that road safety is one of its foremost priorities. Through awareness campaigns, educational programmes and collaboration with government authorities and other stakeholders, the Association continues to encourage responsible driving and safer behaviour among all road users.

AAC believes that the proper use of seat belts, including by rear-seat passengers, is a simple but vital safety measure that can help reduce serious injuries and save lives in the event of a road crash.

The programme further strengthens the cooperation between the Automobile Association of Ceylon, the Road Development Authority and the Police in their shared commitment towards safer roads and saving lives in Sri Lanka.

Business

Sanath Jayasuriya as Brand Ambassador

Published

12 hours ago

2026/09/16

Sahan Weerasooriya

Mr. Dasun Wickramarathna, Chairman Global Housing & Real Estate (Pvt) Ltd with Sanath Jayasuriya, World Renown Personality & Brand Ambassador

Global Housing & Real Estate (Pvt) Ltd (GHR) has announced a landmark partnership with Sri Lankan cricket legend Sanath Jayasuriya, as its Brand Ambassador as GHR enters a new chapter in its journey within Sri Lanka’s luxury real estate sector.

The partnership was officially unveiled at a press conference held at Cinnamon Life, Colombo, on 14 September 2026, bringing together industry leaders, investors and members of the media under the theme “Two Gamechangers, A New Beginning.”

The collaboration brings together two names associated with challenging convention in their respective fields: Sanath Jayasuriya, whose fearless approach transformed the dynamics of international cricket, and GHR, which has sought to introduce new approaches to property investment and luxury living in Sri Lanka.

Over the past two decades, GHR has built its presence in Sri Lanka’s real estate sector with a focus on quality, structural integrity and long-term investment value.

A significant milestone in the company’s journey came in 2016, when GHR introduced the hotel residency concept to the Sri Lankan market. The model brought together luxury hospitality and real estate investment, creating opportunities for property ownership with the potential to generate investment returns while contributing to the growth of the country’s high-end tourism offering. GHR has since continued to expand its portfolio across key destinations in Sri Lanka.

Speaking at the announcement, Dasun Wickramarathna, Chairman of Global Housing & Real Estate (Pvt) Ltd, said, “For over twenty years, Global Housing & Real Estate has strived to push the boundaries of what property development can achieve in Sri Lanka. As pioneers who introduced the hotel residency concept back in 2016, our mission has always been clear: to provide high-yield investment opportunities for our clients while taking Sri Lanka’s condominium industry into a new frontier.”

Commenting on the decision to partner with Sanath Jayasuriya, he added, “When looking for a voice to represent GHR’s ethos, Sanath Jayasuriya was the natural choice. Just as Sanath disrupted traditional international cricket and redefined how the world viewed the opening overs, GHR challenged traditional approaches to real estate and established a new benchmark in luxury living. This partnership represents a true convergence; Two Gamechangers, A New Beginning.”