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EU launches strategy to boost investment in Lanka’s food sector

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Indrajith Boyagoda (Secretary General, Sri Lanka Banks’ Association), Dilanthi Ranaweera (Head of ESG, Silvermill Group of Companies), Dr. Nuwan Gunarathne (Director, Research Centre for Management Studies and Commerce, University of Sri Jayewardenepura), and Shayani Weeresinghe (Sustainable Business Specialist, Expertise France) during the the panel discussion

The European Union funded CIRCULAR project launched an Access to Finance Strategy for promoting Circular Economy investments in the food sector in Sri Lanka, the EU said in a release.

The launch event included a presentation of the Diagnostic and Strategy Report, “Financing Circular Economy Investments in the Food Sector in Sri Lanka”. It identifies challenges across both the demand and supply sides of financing, and highlights opportunities on how market actors can integrate circularity across food systems and build investor confidence for accessing sustainable financing.

The European Union-funded CIRCULAR project launched an Access to Finance Strategy for promoting Circular Economy investments in the food sector on 28 October at the Granbell Hotel in Colombo. The event was inaugurated by Dr. Johann Hesse, Head of Cooperation at the Delegation of the European Union to Sri Lanka and the Maldives. Representatives from the Ministry of Environment, the food sector, financial institutions, academia, and development partners took part in the event, supporting efforts to transition Sri Lankan agri and food sector towards a circular economy.

The CIRCULAR project, implemented by Expertise France, the Food and Agriculture Organisation of the United Nations (FAO), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), aims to reduce food waste and loss and single-use plastics by promoting circular business models and fostering innovation in the food sector. The initiative contributes to strengthening resilience against food crises and climate change while supporting Sri Lanka’s green transition.

“Today, we take a step forward in our partnership with Sri Lanka to overcome these challenges to finance investments to enable the transformation into a circular economy. These challenges are not unique to Sri Lanka; rather, they are shared globally. This initiative embodies a shared vision between the European Union, an its Global Gateway strategy, and Sri Lanka — one that seeks not only to enhance our collaborative efforts but to transform our commitments into tangible and meaningful action”, said Dr. Hesse at the event.

Presenting key findings from the Diagnostic and strategy report “Financing Circular Economy Investments in the Food Sector in Sri Lanka”, Habbipriya Karthigesan, Sustainable Finance Specialist at Expertise France, highlighted that food businesses face high upfront costs, long payback periods, and limited technical expertise to adopt profitable circular practices. On the supply side of financing, financial institutions often perceive circular investments as risky and seek third-party validation.

“Bridging financing gaps in the circular economy requires collective action,” said Ms. Habbipriya. “Businesses need guidance to identify and develop bankable proposals, while financial institutions must reassess and adapt traditional risk frameworks. Several market actors can play an enabling role in validating and building confidence in circular financing.”

Building on these insights, the CIRCULAR project developed its Access to Finance Strategy around:

1. Building evidence and demonstrating the business case for Circular Economy in the food sector

2. Supporting businesses requiring USD 500,000 to USD 5 million for their circular transition through mentoring, circular clinics and investor matchmaking

3. Strengthening financial sector capacity by facilitating knowledge transfer with European banks for embedding risk assessment tools and for developing tailored financial products

4. Partnering with enabling market actors that can provide circular technologies, solutions, certifications and expertise to address perceived investor risks

The launch event also featured a panel discussion, titled “Farm to Finance: Unlocking Capital for Circular Food Systems,” moderated by Ms. Shayani Weeresinghe, Sustainable Business Specialist at Expertise France. Panelists included Ms. Dilanthi Ranaweera, Head of ESG, Silvermill Group of Companies, Indrajith Boyagoda, Secretary General of the Sri Lanka Banks’ Association and Dr. Nuwan Gunarathne, Director of the Research Center for Management Studies and Commerce at the University of Sri Jayewardenepura. The discussion explored how market actors can integrate circularity across food systems and build investor confidence for accessing sustainable financing.



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Navy seizes an Indian fishing boat poaching in northern waters

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During an operation conducted in the dark hours of 27 Dec 25, the Sri Lanka Navy seized an Indian fishing boat and apprehended 03 Indian fishermen while they were poaching in Sri Lankan waters, south of the Delft Island in Jaffna.

The seized boat  and Indian fishermen (03) were brought to the Kreinagar Jetty and were handed over to the Fisheries Inspector of Jaffna for onward legal proceedings.

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Delay in govt. response to UK sanctions on ex-military chiefs, and others causes concern

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General Silva / Admiral Karannagoda

Admiral of the Fleet Wasantha Karannagoda said that he is still waiting for the government’s response to the UK sanctions imposed on three ex-military officers, including him, and a former member of the LTTE.

The former Navy Chief said so in response to The Island query whether he was aware of the position taken by a three-member ministerial committee, consisting of Foreign Minister Vijitha Herath, Justice and National Integration Minister Harshana Nanayakkara and Deputy Defence Minister Maj. Gen (retd) Aruna Jayasekera.

The government named the committee in the wake of the UK declaration of travel bans and asset freezes in respect of Karannagoda, General Shavendra Silva, General Jagath Jayasuriya and Vinayagamoorthy Muralitharan, also known as Karuna. Maj. Gen. Jayasekera said that they inquired into the issue at hand.

Karannnagoda said that he would like to know the government’s recommendations if the ministerial committee briefed the Cabinet as per a decision taken by the Cabinet of Ministers. Karannagoda said that the issue should have been taken at the highest level as various interested parties continue to humiliate the war-winning military by targeting selected individuals.

Other sources, familiar with the issues at hand, told The Island that the government was yet to announce its stand.

Sources pointed out that the Opposition has been silent on what they called a matter of utmost national importance.

Cabinet spokesman Dr. Nalinda Jayathissa is on record as having described the UK move as a unilateral move and that committee was formed to examine the developments and recommend appropriate measures to the Cabinet.

Foreign Minister Herath told The Island the government was not successful in getting the British to withdraw sanctions. Describing the UK decision as unilateral, the Miniser said that the government conveyed its concerns but the UK didn’t change its stand.

The Island raised the issue with Minister Herath and Admiral Karannagoda in the wake of British MP of Sri Lankan origin, Uma Kumaran requesting the UK Foreign Secretary Yvette Cooper to expand on the government’s sanctions imposed on the four above-mentioned persons.

During a Foreign Affairs Committee meeting on 16 December, the MP for Stratford and Bow highlighted the lack of accountability and political will from the current Sri Lankan government to address war crimes and mass atrocities committed in Sri Lanka.

Sources said that David Lammy, who served as Secretary of State for Foreign, Commonwealth and Development Affairs at the time of the declaration of sanctions, had no qualms in declaring that the action taken against four Sri Lankans was in line with a commitment he made during the election campaign to ensure those responsible wouldn’t be allowed impunity. The UK government statement quoted Lammy as having said that this decision ensured that those responsible for past human rights violations and abuses were held accountable.

By Shamindra Ferdinando

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Sri Lanka outlines seven key vectors of international cooperation at Moscow forum

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Shobini

Sri Lankan Ambassador to the Russian Federation, Shobini Gunasekera recently presented a conceptual framework of seven key vectors that defined contemporary international relations and facilitated dialogue among States. She made the presentation at XI Moscow International Financial and Economic Forum held under the theme “Building Bridges: Partnership without Borders”.

In her address, the Ambassador emphasised that these vectors represent the channels through which ideas circulate, trade expands, and peace is strengthened, serving as guiding principles for cooperation amid global uncertainties. The seven key vectors highlighted were economic ties as a foundation for long-term stability; political choice and diplomacy through dialogue and multilateral engagement; security cooperation to address cross-border threats; cultural linkages through education, tourism, and professional exchanges; technological advancement, particularly in digital systems and artificial intelligence; environmental stewardship through collective action on renewable energy and climate change; and humanitarian obligations, including disaster relief and development cooperation.

 Drawing on Sri Lanka’s experience, the Ambassador illustrated the practical application of these principles by highlighting the country’s strategic location in the Indian Ocean, its role as a trade and logistics hub, and its active engagement in regional groupings such as BIMSTEC and the Indian Ocean Rim Association, where the Russian Federation serves as a Dialogue Partner.

 The potential for enhanced Sri Lanka–Russia bilateral cooperation was underscored, particularly through complementarities between Russia’s technological and energy expertise and Sri Lanka’s logistical capabilities and maritime infrastructure. She noted that such synergies could support joint initiatives in trade, innovation, tourism, and logistics, while cultural and scientific exchanges would further strengthen mutual understanding between the two countries.

Concluding her remarks, the Ambassador stated that sustained progress requires dialogue, mutual respect, and forward-looking partnerships capable of shaping a shared and stable future.

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