Business

Essential to integrate tobacco control measures into poverty alleviation policies and programmes – IPS

Published

5 years ago

2020/11/13

IPS’ ongoing study on the ‘Impact of Tobacco Control on National Income’ shows that on average, a tobacco-user household spends nearly Rs. 2000 per month on tobacco, constituting 4% of the household budget. “Spending on tobacco can drive out other critical expenditures, including basic needs. This crowd-out effect would be significant for poor families, affecting not only the smoker but the rest of the family as well. Smoking, therefore, is not only unhealthy but costly,” says IPS Research Economist Priyanka Jayawardena.

“Although Sri Lanka has made progress over the years, in reducing the prevalence of tobacco use to 28.4% of males above 15 years, further action is needed to target the ‘Last Mile’ of tobacco users. In addition, tobacco users are at much higher risk of falling sick and dying prematurely due to tobacco-related disease. This can cause severe financial strains – pushing families into poverty,” Jayawardena explains.

The IPS study shows that reduction of tobacco products will have a positive rather than negative impact on the national income and reveals intra-household budget allocation is negatively affected by tobacco expenditures especially among the poor.

= Tobacco user households spend a greater share of their budget allocation for tobacco (4.0%) than education (3.2%) and health (2.7%) spending.

= Among the bottom 20%, tobacco user households spend less on basic necessities than same the economic group – non-tobacco using households.

= This suggests that if tobacco users were to stop smoking, they would spend more money on food, health and education.

The study reveals a 20% reduction in tobacco expenditure will lead to 30% net benefit to the economy through increased consumption of non-tobacco goods and services. Thus the IPS study offers evidence that reduced tobacco consumption will yield net positive gains for Sri Lanka’s economy, as evidenced in other countries like Vietnam.

IPS Research Economist Priyanka Jayawardena’s article on ‘Tobacco Economics: How reduced consumption benefits the household and the national economy’ is available at: ‘Talking Economics’, the blog of the Institute of Policy Studies of Sri Lanka (IPS), Sri Lanka’s apex socio-economic policy think tank.

Link to blog: https://www.ips.lk/talkingeconomics/2020/11/05/tobacco-economics-how-reduced-consumption-benefits-the-household-and-the-national-economy/

All News Advertisement

Business

Embedding human rights, equity and integrity into business leadership

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Rathika de Silva, Executive Director

At its 2026 Social Sustainability Programme Kick-Off, the UN Global Compact Network Sri Lanka convened business leaders to advance the translation of global ambition into practical corporate action on inclusion, integrity and human rights.

On 24 February 2026, the UN Global Compact Network Sri Lanka (Network Sri Lanka) convened business leaders at Barefoot Garden Café for its 2026 Social Sustainability Programme Kick-Off, delivered in collaboration with Good Life X.

The gathering did more than introduce a calendar of events. It positioned Sri Lanka’s corporate community within the broader direction of the UN Global Compact’s 2026–2030 global strategy — a strategy anchored in three imperatives: equipping companies to act, catalyzing collective action, and advancing the business case for responsible leadership.

At its core, the 2026 Social Sustainability agenda is designed to move companies from commitment to capability.

Within the Diversity & Inclusion Working Group, this means building practical pathways toward equal pay for equal work and strengthening male allyship as a governance issue rather than a cultural afterthought. It means examining sexual and reproductive health, disability inclusion, and mental health not as employee benefits, but as structural determinants of productivity and retention. It means sharpening strategic communications so inclusion is embedded in brand integrity. It also means applying science-based behavioural change approaches to shift organizational culture in measurable ways.

Across the Business & Human Rights Working Group, equipping companies takes the form of deepened engagement on decent work and living wage implementation, strengthening human rights due diligence processes, and addressing emerging risk areas such as AI and digital rights. It extends to reinforcing business integrity and anti-corruption frameworks, understanding the social dimensions of a just transition, and recognizing the link between child rights, nutrition, and workforce productivity.

Business

Union Bank to raise LKR 3 Bn via Basel III Compliant Debenture Issue

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Shanka Abeywardene

Union Bank of Colombo PLC announced its proposed Debenture Issue 2026, a strategic move aimed at raising up to LKR 3 billion. This issue is designed to bolster the Bank’s Tier II capital base and provide a robust financial foundation for its upcoming growth initiatives.

The offering consists of Basel III compliant, listed, rated, unsecured, subordinated, redeemable high-yield debentures with Non-Viability Conversion. The instrument has been assigned a rating of BB (lka) by Fitch Ratings (Lanka) Ltd, reflecting the bank’s creditworthiness and the structured nature of the subordinated debt.

Investors can choose from three distinct interest structures starting from a high-yield 13% fixed rate per annum (Type A). This option is paid annually, while Type B offers a 12.5% fixed rate paid semi-annually (12.89% AER). For those seeking market-linked returns, Type C provides a floating rate of the 182-days Treasury Bill rate plus a 400-basis point margin, also paid semi-annually.

The debentures are priced at LKR 100 per unit with a 5-year tenure (2026–2031). The initial issue size is set at 20,000,000 debentures with an option to raise 10,000,000 at the discretion of the Bank and is scheduled to open on 10 March 2026.

Shanka Abeywardene, Chief Financial Officer of Union Bank stated “This debenture issue marks a significant step in the Bank’s journey towards enhanced financial stability. By strengthening its capital adequacy, Union Bank is well-positioned to navigate evolving market conditions while fuelling its long-term strategic objectives for sustainable growth”

Business

Sanjay Kulatunga appointed to WindForce Board

Published

20 hours ago

2026/03/5

Sahan Weerasooriya

Sanjay Kulatunga

WindForce PLC announced the appointment of Sanjay Kulatunga as an Independent, Non-Executive Director to its Board with effect from 03rd March 2026, following the resignation of Dilshan Hettiaratchi. The appointment further strengthens the Company’s governance framework, strategic oversight, and long-term decision-making capabilities.

Kulatunga brings an established track record as a founder, entrepreneur, and senior executive across financial services and export-oriented industries. He is the Chief Executive Officer and Co-Founder of LYNEAR Wealth Management, a boutique investment firm established in 2013, which has since grown to become one of Sri Lanka’s largest private wealth management institutions, serving high-net-worth individuals as well as local and international institutional clients.

Prior to founding LYNEAR, Kulatunga played a pivotal role in the establishment of Amba Research, an investment research offshoring firm rooted in Sri Lanka and now operating as part of Acuity Analytics.

Over the years, he has contributed extensively to several key national institutions. His previous appointments include serving on the Financial Sector Stability Consultative Committee of the Central Bank of Sri Lanka, as well as the Board of Investment of Sri Lanka and the Securities and Exchange Commission of Sri Lanka.