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Forward plans to transform Sri Lanka into a global aviation and logistics hub

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Andre Fernando

Harischandra Gunaratna of The Island Financial Review speaks to Andre Fernando, Managing Director of MAC Holdings (PRIVATE) LTD

Sri Lanka’s strategic location in the Indian Ocean among major air routes connecting Asia, Europe, Africa and the Middle East, offers a unique opportunity to transform the island into a thriving aviation hub. With the right investments and policy changes, Sri Lanka can leverage its geographical advantage to bolster tourism, facilitate international cargo & passenger transportation, and serve as a key transit point for passengers and goods. This vision not only promises to boost the nation’s economy but also has the potential to redefine its position on the global aviation map. Perfect example is the growth of 4 prominent airlines; Emirates, Fly Dubai, Air Arabia and Etihad and their importance to the economy of UAE, which was a desert in the mid-1990s.

Why Sri Lanka is well-suited to be an aviation hub

Strategic Location: Sri Lanka’s proximity to major global markets—India, China, Southeast Asia, Africa the Middle East and Europe—makes it a perfect transit point for airlines and cargo carriers. This natural geographic advantage means shorter flight routes and lower fuel costs for airlines choosing to hub in Sri Lanka. Sri Lanka could also be the best hub to connect passengers and cargo to Africa and minimize the long deviation one has to take by travelling via Middle- East hubs of Dubai, Abu Dhabi, Doha or Bahrain.

Tourism Potential: The country has long been a magnet for tourists due to its rich culture, pristine beaches, wildlife, and heritage sites. A strong aviation sector will help open new tourism markets, providing better connectivity to key destinations.

Cargo Hub Opportunity: Sri Lanka is positioned at the crossroads of key maritime and air trade routes, making it an ideal center for logistics and cargo services. With growing demand for air freight in e-commerce and perishable goods, Sri Lanka could serve as a bridge for goods moving between East and West. PPP investment at BIA must be done to invest in a courier and e-commerce hub terminal which is a dire necessity.

What are the steps to establish Sri Lanka as an aviation and cargo hub?

1. Upgrade Infrastructure

Expand Airport Facilities: The Bandaranaike International Airport (BIA) in Colombo is Sri Lanka’s primary international gateway, but it faces capacity constraints. Expanding BIA’s terminals and runways to accommodate more flights and passengers is essential. Mattala Rajapaksa International Airport, located in the South, can also be developed as a complementary MRO facility and also a secondary airport for leisure charter flights to be moved to tourism hot spots like Passe kudah, Yala and Arugam bay.

Enhance Ground Handling and Technology: To attract airlines and cargo carriers, Sri Lankan airports need world-class ground handling services, including efficient passenger & cargo handling, including that of passenger baggage, faster immigration & customs clearance and seamless technology integration for booking and scheduling. In order to be competitive one could also moot a 2nd ground handling service which can be a PPP and compete with Sri Lankan airlines.

2. Attract More Airlines and Routes

Open Skies Policy: Adopting more liberal air service agreements with key markets could encourage international airlines to increase their services to Sri Lanka. An open skies policy, or at least partial liberalization, could make Sri Lanka more accessible to global carriers and stimulate both passenger and cargo traffic.

Partnerships and Code Shares: Encouraging SriLankan Airlines to forge stronger code-sharing partnerships with major international carriers would facilitate seamless connectivity, making the island a more attractive stopover for passengers.

3. Develop Cargo and Logistics Capabilities

Establish Free Trade Zones (FTZs): Strategically located Free Trade Zones (FTZs) near the airport, with efficient customs and logistical services, would help attract multinational logistics firms to use Sri Lanka as a warehousing and distribution hub.

Cold Storage and Perishables Handling: Investing in cold storage facilities at airports would allow the nation to become a key player in handling perishable goods, such as food and pharmaceuticals, which require specific conditions during transport.

Leverage Port-Aviation Synergy: The close proximity of Colombo’s port to the airport offers unique opportunities for an integrated sea-air logistics system. Creating multimodal logistics corridors between the Port of Colombo and BIA would enable seamless movement of goods, particularly for time-sensitive shipments.

4. Boost Human Capital and Expertise

Training and Development: Investing in training programs for aviation personnel, including pilots, ground crew, air traffic controllers, and cargo handlers, will ensure a skilled workforce capable of meeting global standards. Minimizing the loss arising from our experienced and trained staff migrating to Middle East countries is a must. This will naturally stop if we can make Sri Lanka a key aviation hub as our salaries will improve to match regional markets in the Middle East and Asia.

Aviation Management Schools: Developing educational institutions focused on aviation management, engineering, and logistics will cultivate local talent, reducing dependence on foreign expertise while fostering innovation within the sector.

5. Enhance Tourism Infrastructure

Create More Tourist Attractions: Developing world-class infrastructure, including hotels, theme parks, and luxury resorts around key airports, will make Sri Lanka more appealing as a tourism destination.

Improve Connectivity: Strengthening the domestic aviation network will allow international tourists to easily explore all corners of the island. Investments in regional airports, like those in Jaffna, Hambantota, and Trincomalee, can play a critical role in this.

6. Sustainability and Eco-Friendly Practices

Green Airports: Building eco-friendly airport infrastructure and encouraging the use of renewable energy can enhance Sri Lanka’s image as a sustainable tourism destination.

Carbon Offsetting Programs: Implementing carbon offsetting schemes for airlines operating in Sri Lanka will help mitigate the environmental impact of increased air traffic and appeal to environmentally conscious travelers.

What are the benefits of a Sri Lankan aviation hub?

Economic Growth: A well-functioning aviation hub will drive investment, create jobs, and increase the island’s GDP. From tourism to freight forwarding, the aviation sector can have a multiplier effect across industries.

Boost to Tourism: As Sri Lanka becomes a transit point, it will increase exposure to new tourists who can be enticed to stay and explore the country. Targeting niche tourism, such as medical tourism, eco-tourism and adventure travel, will diversify the industry.

Enhanced Trade and Connectivity: The establishment of a logistics hub will facilitate regional and global trade. Sri Lanka will become the go-to center for re-exports and regional distribution, attracting multinational companies to use its airspace and logistics capabilities.

What are the challenges to overcome?

While the potential for an aviation hub is promising, Sri Lanka must overcome several challenges to achieve this goal:

Political Stability: For long-term investments in aviation infrastructure, political stability and consistent policies are necessary.

Regulatory Framework: A transparent and investor-friendly regulatory environment will be essential to attracting foreign airlines and logistic operators.

Financial Investment: Developing airports, logistics centers, and tourism infrastructure will require significant financial resources and strategic public-private partnerships.

(Andre Fernando is a self- made entrepreneur and the grandson of a billionaire businessman from Wattala,Boniface Fernando hailing from an era when billionaires were far and few in the country. Fernando is the chairman of the Transport and Logistics committee of the National Chamber of Commerce of Sri Lanka)



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Business, healthcare and civic leadership unite to drive Sri Lanka’s fight against cervical cancer

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Dr. Nadija Herath addressing the gathering at Dilmah Genesis

In a powerful demonstration of how responsible business, public healthcare and civic leadership can work together for national good, Sri Lanka this week renewed its commitment to eliminating cervical cancer through an expanded screening programme backed by corporate funding, Rotary leadership and the Ministry of Health.

The initiative, supported by Dilmah, the Rotary Club of Colombo, the Family Health Bureau and the Sri Lanka Cancer Society, aims to strengthen nationwide HPV DNA screening, public awareness and prevention efforts at a time when cervical cancer continues to claim hundreds of lives annually despite being one of the most preventable forms of cancer.

Dilmah Chairman/CEO Dilhan C. Fernando said the programme reflects the values of his late father, Merrill J. Fernando, who believed companies exist not merely to generate profit, but to create lasting value for society.

He added:”Businesses do not exist to make profit. Businesses exist to create value. Value begins with people and livelihoods, continues through nature, and only then earns the right to secure economic value.”

Fernando announced a fresh commitment of Rs. 50 million this year, which will fund 20,160 screenings, following an earlier Rs. 75 million pledge made in January 2024 under a Memorandum of Understanding signed with the Ministry of Health and Rotary.

“That value may seem like a big number, but it is insignificant when you consider that it has saved thousands of women from the scourge of cancer,” he said.

He described the continued deaths from a preventable disease as deeply troubling.

“Learning that so many women were losing their lives annually to cervical cancer was something really quite abhorrent to us,” Fernando said.

Representing the Rotary Club of Colombo, K.R. Ravindran said the campaign is proof that strategic partnerships can change national health outcomes.

“This is not a discussion. This is a promise of early detection,” Ravindran said. “Cancer, especially cervical cancer, does not arrive with a bell ringing or a warning. It whispers, and so often by the time it is heard, it is too late.”

He said Rotary’s own experience operating early detection centres for breast, cervical and oral cancer had shown the life-saving value of screening.

“Early detection is not just saving lives. It transforms fear into hope, into possibility,” he said.

Ravindran noted that Sri Lanka’s economic crisis had once threatened to halt testing services because of shortages in funding for diagnostic kits, but private sector intervention prevented disruption.

“Without the money, the whole thing would have gone awry. That is when Dilmah stepped in,” he said.

“They did something far greater than simply giving money. They made scale possible. They made continuation possible. They made impact possible.”

Ravindran expressed confidence that Sri Lanka can become one of the first countries in the world to eliminate cervical cancer as a public health threat by 2030, citing the nation’s literacy, public health network, school vaccination system and midwife service.

“I think this country can become one of the first countries to be rid of this disease,” he said.

Consultant Community Physician Dr. Nadija Herath of the Family Health Bureau said cervical cancer is caused mainly by persistent infection with the Human Papillomavirus (HPV), but can be prevented through vaccination and early detection.

She said Sri Lanka’s Well Woman Clinic programme, launched in 1996, screens women primarily in the 35 and 45 age groups, and is now expanding the use of HPV DNA testing, which is more accurate than conventional cytology methods.

“The most important thing about this cancer is that it is preventable,” Dr. Herath said. “If pre-cancerous changes are identified early, they can be fully treated and women can live normal lives.”

She said new funding would also support outreach clinics, especially in workplaces and underserved areas.

President of the Sri Lanka Cancer Society Anoja Karunaratne said awareness remains a major challenge, with stigma and fear discouraging many women from seeking screening.

“We need to take this message beyond hospitals and clinics—into schools, workplaces, religious institutions and community groups,” she said.

She stressed that women should view screening as a routine part of healthcare rather than something to fear.

Speakers at the event said the collaboration stands as a model for corporate Sri Lanka, showing how businesses can contribute meaningfully to national wellbeing.

Fernando praised Sri Lanka’s healthcare system for continuing to innovate despite adversity.

“Whatever anyone may say about systems or governance, the fact is Sri Lanka’s healthcare system has an enviable track record,” he said.

By Ifham Nizam

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The power of soft skills: Transforming students into future leaders with SLIIT Soft Skills+ 2026

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The soft skills development program is a major project carried out under its Corporate Social Responsibility (CSR) agenda, by the SLIIT Business School. This program, intended to go beyond typical classroom instruction, focuses on giving school going students the fundamental life skills they need to thrive in a world that is becoming more competitive and dynamic.

The program, which is intended for students in Grades 11 through 13, is open to participation from schools under the Sri Lankan government, private, and foreign institutions. The inclusive process ensures that students from different educational backgrounds have equal opportunities to improve their personal and professional competencies by enrolling for the program.

The initiative’s main goal is to close the knowledge gap between academia and real-world application. In addition to encouraging creativity, innovation, and an optimistic outlook, it places a strong emphasis on the development of vital soft skills like problem-solving, collaboration, and communication. By using this strategy, the program hopes to develop well-rounded, future-ready people who can overcome obstacles in the real world.

The preliminary stage and the Grand Finale are the two primary phases of the Soft Skills+ 2026 program. The program starts with an online teacher training workshop on April 28, 2026. In order to ensure long-term impact and sustainability, this recently added component focuses on improving instructors’ capacity to mentor and support students in the development of soft skills.

The preliminary rounds will be held virtually on May 9, 2026, across three regions: Malabe, Kandy, and Matara. These sessions include competitions focused on activities, quiz-based evaluations, and interactive workshops on soft skills. All exercises and questions are presented in Sinhala, Tamil, and English to encourage inclusivity, enabling students to participate in their favorite language with ease.

The top 50 teams from the preliminary stages will move on to the Grand Finale, which will take place at the SLIIT Malabe Campus on May 16, 2026. In order to ensure fairness and transparency, this final round will include advanced competition rounds and through evaluations carried out by a team of experienced and knowledgeable jury panel.

Certificates will be given to all participants, including instructors and children, and special gifts will be given to the finalists. In recognition of their exceptional performance and commitment, winning teams will also receive monetary awards.

With 50 teams participating in the grand finale and strong representation from across the island, the 2025 program demonstrated its growing impact. Last year’s winner was from St. Servatius College, Matara while Sivali Central College in Rathnapura was the runner-up.

This program, which has received official Ministry of Education clearance, is a nationally recognized platform that supports educational goals and continues to mold future leaders. For more details contact Mr. Ranitha Weerarathna, Senior Lecturer – SLIIT Business School via Tel – (+ 94) 0776503079 / 0764403664 or Email – ranitha.w@sliit.lk

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Seylan Bank reports PAT of LKR 2.91 Bn in Q1 – 2026

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The Bank recorded a Profit Before Income Tax (PBT) of LKR 4,548 Mn in Q1 2026, against LKR 4,199 Mn reflecting a growth of 8.31%.

For the three months ended 31st March 2026, Profit after Tax recorded by Seylan Bank was LKR 2,906 Mn with a growth of 5.25% against LKR 2,761 Mn recorded in the corresponding period of 2025.

Statement of Financial Performance

Net interest income increased from LKR 8,587 Mn to LKR 9,734 Mn, an increase of 13.37% over the previous year for the 3 months ended 31st March 2026 mainly due to the significant growth in bank’s assets base over the last 12 months from LKR 785 Bn as end of Q1 2025 to LKR 943 Bn as at 31st March 2026. The Bank’s Net Interest Margin (NIM) also moderated from 4.50% in 2025 to 4.23% during Q1 2026.

Meanwhile, the Bank’s net fee-based income recorded a growth of 24.04%, increasing from LKR 1,863 Mn to LKR 2,311 Mn, primarily driven by fee income from Cards, Remittances, Trade, and other financial services.

Other income captions comprising of net gains / losses from trading, net gains from derecognition of financial assets and net other operating income, reflected a reduction mainly due to decline in mark to market gains from government securities and equity investments with the prevailing market interest rates and price movements, however exchange income showed an increase, due to higher forex trade volumes.

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