Business
Ethical AI and responsible leadership in emerging markets
Interview with Arundhati Bhattacharya,
President and CEO, Salesforce South Asia
From your vantage point leading Salesforce South Asia, how do you define “ethical AI” in the context of today’s rapidly digitizing businesses?
Ethical AI, in my view, is not just about meeting compliance checklists—it’s about upholding values of trust, transparency, and inclusion throughout the lifecycle of AI design, development, and deployment. In South Asia, where digital transformation is gaining pace but foundational trust in emerging tech is still being built, ethical AI means being deliberate: building systems that are explainable, fair, and aligned to human-centered values.
At Salesforce, our approach to responsible AI is rooted in our core value of Trust. We’ve developed a robust governance framework, grounded in five key principles: responsibility, accountability, transparency, empowerment, and inclusiveness. These guide how we build and deploy AI technologies—ensuring they are safe, effective, and beneficial to all stakeholders.
Take our Einstein Trust Layer as an example—it ensures that sensitive customer data is never used to train generative AI models, and provides enterprise-grade safeguards like data masking, audit trails, and user-controlled prompts. It’s a practical embodiment of our ethical AI commitment—giving customers the confidence that innovation will not come at the cost of integrity.
Moreover, we believe that ethical AI isn’t just a product decision—it’s a leadership responsibility. That’s why we’ve established dedicated advisory councils, cross-functional governance bodies, and even bias evaluation protocols to continuously assess how our AI systems impact different groups. In an era where businesses are expected to do more than just grow revenue, ethical AI is not optional—it’s foundational to long-term, sustainable digital success.
Given your leadership at SBI during its digital pivot, how do legacy institutions build trust while adopting disruptive technologies like AI—especially when dealing with sensitive consumer data?
Having led the digital transformation of one of India’s most trusted financial institutions, I’ve seen firsthand that trust cannot be assumed—it must be earned continuously. For legacy institutions, adopting AI isn’t just a technological shift; it’s a cultural one. It requires transparent communication, strong internal governance, and a deep respect for customer data.
At SBI, when we moved to mobile banking and AI-enabled fraud detection systems, we did so by engaging every stakeholder—from board members to branch managers—on the ‘why’ behind the change. That same mindset applies today. Institutions must educate customers, create fallback mechanisms for AI decisions, and ensure that human oversight remains integral in high-stakes processes like lending, healthcare, or public services. In markets like Sri Lanka, a strong foundation of transparency and data stewardship is critical, as they forward in their digital transformation journey.
What governance frameworks or accountability mechanisms do you believe should be industry-standard when deploying AI at scale?
AI systems must be understandable—not just to data scientists, but to regulators, end users, and the general public. At Salesforce, we advocate for robust documentation and explainability of models so that any decision can be traced and justified.
Industry-wide, we need common accountability mechanisms such as bias detection audits, privacy-by-design protocols, and redressal frameworks for unintended outcomes. For example, AI used in recruitment must be tested for demographic fairness, and healthcare algorithms must be validated across diverse populations.
I’m encouraged to see countries like Sri Lanka incorporating responsible AI principles in their National AI Strategy. As businesses, we must complement these efforts with voluntary guardrails that often go beyond regulation.
In emerging economies like India, where digital literacy and access are uneven, how can organizations ensure that AI doesn’t widen the trust gap or exacerbate bias?
This is a deeply important question, because AI reflects the data and assumptions we feed into it. In growing economies where digital access and representation are uneven, bias isn’t just a risk—it’s inevitable unless addressed with clear intention and care.
Organizations must first ask: Who is represented in the data? Who is being left out? And then take action—by partnering with local communities, diversifying data sources, and ensuring interfaces are accessible in local languages. At Salesforce, we support initiatives that focus on inclusive design and multilingual AI, which are particularly important in South Asia’s linguistically rich environments.
Moreover, AI literacy must become part of our skilling agenda. Through initiatives like Trailhead and our Virtual Internship Program in India, we’re helping students and early professionals build both technical and ethical fluency in AI. Equity in access and equity in design must go hand-in-hand.
Trust is often earned through leadership. What ethical principles guide your own decisions when championing new technologies across Salesforce’s South Asia operations?
In today’s world, where technology is reshaping every facet of life and work, I believe leadership must be anchored in conscience as much as competence. For me, technology is only meaningful when it uplifts people—when it bridges gaps, not widens them. At Salesforce, I’ve always been guided by five enduring principles: empathy, transparency, inclusion, accountability, and long-term societal impact.
I ask myself simple but profound questions: Will this technology empower the underserved? Will it reinforce or reduce inequities? Will it be understandable, accessible, and safe for those who rely on it? These are not just philosophical reflections—they translate into the operational and strategic choices we make every day.
At Salesforce, I deeply resonate with our commitment to being Responsible by Design. This means trust isn’t an afterthought—it is architected into our systems, governance, and culture. From the Einstein Trust Layer to our AI Acceptable Use Policy, we embed ethical considerations at every level. And it goes beyond the technology stack—it extends to how we train our teams, support our customers, and hold ourselves accountable when things go wrong.
In the South Asia context, where institutions are at different stages of digital maturity, the role of leadership becomes even more critical. Trust is not built in boardrooms—it’s built in how responsibly we deploy innovation in hospitals, schools, government programs, and small businesses. As leaders, we must embody the values we want our technologies to reflect. Because in the end, the legacy of our leadership won’t be the code we write—it will be the trust we inspire.
(Arundhati Bhattacharya is the President and CEO of Salesforce South Asia. A Padma Shri awardee and the first woman to chair the State Bank of India, she brings over four decades of leadership across finance and technology. Recognized globally by Forbes and Fortune as one of the world’s most powerful business leaders, she now spearheads Salesforce’s strategic growth and ecosystem engagement across the region.)
Business
Cheaper credit expected to drive Sri Lanka’s business landscape in 2026
The opening weeks of 2026 are offering a glimmer of cautious hope for the business community weary from years of economic turbulence and steep financing costs. The Central Bank’s latest weekly economic indicators signal more than just macroeconomic stability. They point to early signs of a long-awaited trend; a measurable dip in borrowing costs.
“If sustained, this shift could transform steady growth into a robust, investment-led expansion,” a senior economist told The Island Financial Review.
The benchmark Average Weighted Prime Lending Rate (AWPR) declined by 21 basis points to 8.98% for the week ending 16 January, according to the Central Bank.
“For entrepreneurs and CEOs, this is not just another statistic. It could mean the difference between postponing an expansion and hiring new staff. Across boardrooms, the hope is that this marks the start of a sustained downward trend that holds through 2026,” he said.
When asked about the instances where Treasury Bills are not fully subscribed by the investors, he replied,” Treasury Bill yields remained broadly stable, with only minimal movement across 91-day, 182-day, and 364-day tenors. Strong demand was clear, with the latest T-Bill auction oversubscribed by about 3.5 times. This sovereign-level stability creates room for the gradual easing of commercial lending rates, allowing the Central Bank to nurture a more growth-supportive monetary policy.”
Replying to a question on how he views the inflation numbers in this context, he said, “The year-on-year increase in the National Consumer Price Index stood at a manageable 2.4% in November, with core inflation at 2.2%. Such an environment should allow interest rates to fall without sparking a price spiral. For businesses, it means the real cost of borrowing adjusted for inflation, and it is becoming more favourable for them. While consumers still face weekly price shifts in vegetables and fish, the broader disinflation trend gives policymakers leeway to keep credit affordable.”
Referring to the growth trajectory, he mentioned, “With GDP growth provisionally at 5.4% in the third quarter of 2025 and Purchasing Managers’ Indices signalling expansion in both manufacturing and services, the economy is in a growth phase. However, to accelerate this momentum businesses need capital at lower cost to modernise machinery, boost export capacity, and spur innovation. Affordable credit is, therefore, not merely helpful, it is essential to shift growth into a higher gear.”
In conclusion , he said,” The coming months will be watched closely, because for Sri Lankan businesses, a sustained decline in borrowing costs isn’t just an indicator; it’s the foundation for growth. There’s hope that this easing in the cost of money will prevail through most of the year.”
By Sanath Nanayakkare ✍️
Business
Mercantile Investments expands to 90 branches, backed by strong growth
Mercantile Investments & Finance PLC has expanded its national footprint to 90 branches with a new opening in Tangalle, reinforcing its commitment to community accessibility. The trusted non-bank financial institution, with over 60 years of service, now supports diverse communities across Sri Lanka with leasing, deposits, gold loans, and tailored lending.
This physical expansion aligns with significant financial growth. The company recently surpassed an LKR 100 billion asset base, with its lending portfolio doubling to Rs. 75 billion and deposits growing to Rs. 51 billion, reflecting strong customer trust. It maintains a low NPL ratio of 4.65%.
Chief Operating Officer Laksanda Gunawardena stated the branch network is vital for building trust, complemented by ongoing digital investments. Managing Director Gerard Ondaatjie linked the growth to six decades of safeguarding depositor interests.
With strategic plans extending to 2027, Mercantile Investments aims to convert its scale into sustained competitive advantage, supporting both customers and Sri Lanka’s economic progress.
Business
AFASL says policy gap creates ‘uneven playing field,’ undercuts local Aluminium industry
A glaring omission in the Board of Investment’s (BOI) Negative List is allowing duty-free imports of fully fabricated aluminium products, severely undercutting Sri Lanka’s domestic manufacturers, according to a leading industry association.
The Aluminium Fabricators Association of Sri Lanka (AFASL) warns that this policy failure is threatening tens of thousands of jobs, draining foreign exchange, and stifling local industrial capacity.
“This has created an uneven playing field,” the AFASL said, adding that BOI-approved developers gain cost advantages over local fabricators, while government revenue and foreign exchange are lost through imports of products already made in Sri Lanka.
The core of the issue lies in a critical policy gap. While raw aluminium extrusions are protected on the BOI’s Negative List – which restricts duty-free imports – finished products like doors, windows, and façade systems are not. Furthermore, the list’s lack of specific Harmonised System (HS) codes allows these finished items to be imported under varying descriptions, slipping through duty-free.
This loophole, the AFASL argues, disadvantages a robust local industry that employs over 30,000 people directly and indirectly. Supported by five local extrusion manufacturers, a skilled NVQ-certified workforce, and a well-established glass-processing sector, the industry has been operational since the 1980s.
The association highlights that the damage extends beyond fabrication. The imported systems often include glass, hinges, locks, and accessories, all of which are produced locally, thereby cutting off demand across the entire domestic value chain. Small and medium-sized enterprises (SMEs), a segment government policy aims to support, are feeling the impact most acutely.
Since May 2025, the AFASL has been engaged in talks with the BOI, Finance Ministry, and Industries Ministry. Their key demand is to include specific HS codes on the Negative List and to list fabricated aluminium doors, windows, and curtain wall systems under HS Code 7610 to close the loophole.
While welcoming supportive recommendations from the Industries Ministry to add these products to an updated Negative List, the AFASL sounded a note of caution. It warned that proposed reductions in the CESS levy could further incentivise imports, undermining the sector’s recovery from the economic crisis.
The association also pointed to an inequity in the current framework. With most subsidies withdrawn, BOI-registered property developers continue to benefit from duty-free imports, while locally made products remain subject to heavy taxes for the general population.
The AFASL is urging policymakers to align investment incentives with national industrial policy, protect domestic manufacturing, and ensure fair competition across the construction supply chain to safeguard an industry vital to Sri Lanka’s economy.
By Sanath Nanayakkare ✍️
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