Business

‘Government temporarily takes one step forward after many backward steps on agriculture’

Published

4 years ago

2021/09/14

By Dr. Hemakumara Nanayakkara

Ever since April 2021, Sri Lanka’s agriculture and plantation sectors have been beset by needless difficulties as a result of an announcement, seemingly made on a whim, that Sri Lanka would switch to completely organic agriculture – effective immediately.

In doing so, the Government has jarringly halted all progress on efforts to develop these critical sectors, pushing the entire nation back many steps in the decision to ban import and use of all agro-chemicals and inorganic fertilizer.

A conflict of intentions and egos

By issuing such an extreme proclamation without a shred of scientific analysis into how these concepts could be practically implemented in Sri Lanka, they have done more harm than good to the expansion of true organic agriculture.

This is unfortunate because, as a concept, organic agriculture has many benefits. However, unlike what has been portrayed, it is not simply a matter of reverting to ‘ancient practices’. There is a deep and complex science to organic cultivation.

None of these complexities were understood or considered when the imprudent decision to ban all inorganic inputs was first announced. The assumption that ‘organic’ is just adding compost to soil has been the detriment of the directive. Hence, it was decided that imported chemical inputs were not necessary, not because organic agriculture is practical, but because imports require the Government to spend more of the nation’s now dwindling foreign reserves.

A little knowledge is a dangerous thing

In the months that have followed, everyone from academics to industry experts and farmers on the ground have been venting their frustration at the total breakdown of their regular cultivation practices as a result of this dangerously unscientific approach to agricultural reform.

After much condemnation, it was finally announced at the start of August that the Government was reverting their position. While not admitting it and maintaining that the ban is still in effect, probably to save face, the fact that they are relenting on import of chelated minerals, fertilizer mixes and micro-nutrients for specialist applications including for hydroponic cultivation and floriculture”, even if temporary, is a slight relief.

It may be assumed that technicalities of what these terms mean may be enough to dissuade the public from asking too many questions. But anyone with passing knowledge of agriculture would understand that chelated minerals and fertilizer mixes contain the exact same inorganic inputs which the Government is overtly claiming to ban – namely: Nitrogen, Phosphorus, and Potassium (NPK). These are the elements which are essential to plant nutrition and growth.

Prior to the invention of techniques to produce synthetic fertilizer in the early 1900s, guano – the accumulated excrement of seabirds and bats was the only known reliable source of fertilizer with NPK suitable for commercial agriculture at that time. This pressing demand for fertilizer led to many predictions of mass starvation, and it would have come to pass were it not for the invention of the Haber-Bosch technique for the manufacture of synthetic nitrogenous fertilizer.

While it is possible to obtain Phosphorus locally, and organic Potassium could be imported from natural mines – leaving aside the fact that supply chains are not in place to meet the entire national requirement – sourcing Nitrogen is much more problematic. That is because it is extremely difficult to obtain N from plant or animal sources at the levels necessary for commercial scale agriculture.

Currently, we use Urea for tea and paddy, which contains approximately 46% Nitrogen. By contrast, organic sources like Gliricidia offers only 4%, while cattle dung has 3.5% and poultry dung –with 4.5% nitrogen by composition.

Prior to the ban, NPK was used in paddy, tea, rubber and coconut, and after the latest relaxation, these are still the same inputs that are being used, so in practice the Government has taken 3 months to make a bad decision and then reverse it – all the while falsely maintaining that inorganic NPK is not acceptable.

Had the Government simply consulted with relevant experts in the field in an open and transparent manner, they could have avoided all of the detrimental effects which followed from this disastrous decision. While there mention of a “Presidential Task Force for a green socio-economy” at the outset, they have not been forthcoming about their logic or approach in any public forums.

We are aware that there is a person in that task force who has been presented as a professor who made the ludicrous claim that sea-weeds as tall as coconut trees can be harvested from the ocean and used as organic fertilizer. While it is true that such large seaweed growth does exist, it is only found in close proximity to the North Pole, hence it is of no relevance to Sri Lanka. We offer this example in order to shine a light on the absurd and utter lack of credible scientific information behind policy decisions at the highest levels of this Government.

Those who fail to learn from history are doomed to repeat it

If we continue to allow the State to intervene and interfere with the fundamentals of agriculture in Sri Lanka based on the whims of such individuals, what is the worst that could happen? Previously we were told that the import and use of all agrochemicals would be banned immediately. Thereafter, the deadline was pushed back to a period within 3 months – 1 cultivation season. Now they have temporarily reverted back to allowing agro-chemicals, but it is implied that these imports could once again be banned at any moment.

In the interim, the solution that is currently being offered is a “nitrogen extract” that will be used as a spray. No further details have been provided. We don’t know if this extract is organic, inorganic, from the moon or even Mars. All we do know is that the only possible high percentage nitrogenous extracts can only be obtained from a chemical base. If the Government is trying to deceive people, they may use chemically extracted nitrogen, which could in turn be sprayed on organic manure and distributed among farmers.

In effect, the Government is refusing to reveal what exactly we will be adding to our soil through such extracts. Until they do, we must continue to call for more clarity and transparency. This is especially crucial for any agricultural exports – especially tea – whose buyers are sensitive to Maximum Residue Limits (MRLs).

Another fact to consider: no country in the world has ever succeeded in going totally organic. There are however some cautionary examples from history of those who tried. The example of Bhutan has been often cited in recent months. There, it was announced that over a period of 20 years, Bhutan would systematically phase out inorganic inputs. Even after careful and intensive planning with broad stakeholder consultation and preparation, the country was only able to convert 10% of their arable lands into organic agriculture after 30 years of effort in total.

The author is a former State Minister of Agriculture, Former Governor of the Southern Province, and Sri Lanka’s only PhD in Organic Agriculture from the Post-Graduate Institute of Agriculture at the Peradeniya University

To be continued

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Business

CDS accounts on the increase, crosses one million accounts

Published

6 hours ago

2026/03/7

Thilina Walpola

Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has reached a milestone as total registered accounts surpassed the 1 million mark. This achievement coincides with the approach of the organization’s 35th anniversary in September 2026, marking three and a half decades of providing depository infrastructure for the Sri Lankan capital market.

Since its inception in 1991, the CDS has held the distinction of being the first depository in the South Asian region. In its core capacity as a depository, the institution is responsible for holding a wide array of securities including shares, debentures, corporate bonds, and units belonging to investors in electronic form.

The crossing of the one million account threshold also reflects the aggressive broad basing of the retail investor market over the past five years. This expansion is largely attributed to the comprehensive digitalization of the CSE, which has created accessibility for individuals across the country. Digital tools such as the CSE Mobile App and the “CDS e-Connect” portal have revolutionized how investors interact with the stock market, providing them with real time access to their holdings and a seamless interface for account management. The “CDS e-Connect”, originally launched in 2016 and revamped in 2021, has become a one stop shop for stakeholders, by offering services such as client profile management, real time balance and transaction viewing, eNomination facility, monthly statements and newly introduced dividend payment history viewing option. From 2016, by offering eStatements and SMS alert facilities CDS ensures transparency and security for the CDS accountholders. By decentralizing account openings and introducing online facilities in 2020, the CDS successfully brought the stock market to the fingertips of the general public, moving away from the traditional, paperwork heavy processes that once characterized the industry.

A critical pillar of this 35-year history was the 2011 launch of the full dematerialization drive. This initiative was designed to significantly reduce the movement of physical certificates, which were prone to loss, damage, and forgery. Today, the success of this drive is evident as the CDS holds 97 percent of listed equity and 100 percent of corporate debt in scripless form. This near total transition to electronic records has provided a secure and accessible service environment. The Central Control Unit plays a vital role, ensuring that all functions performed by the depository and its participants align with strict rules and regulatory guidelines. By identifying operational, financial, and market risks early, the CDS maintains the integrity of the ecosystem and fosters trust among both domestic and international investors.

Beyond its primary depository functions, the CDS has significantly expanded its influence through the Corporate Solutions Unit (CSU), established in 2017. The CSU was created to standardize and elevate the benchmarks for corporate action services in Sri Lanka and has since grown through the strategic acquisition of PW Corporate Registrar arm. This diversification allows the CDS to expand registrar services and manage corporate actions for both listed and unlisted companies, providing a holistic suite of services that includes the distribution of dividends, rights issues, and e-applications for Initial Public Offerings (IPOs). The digitization of issuer services has been a hallmark of the CSU’s work, introducing innovations such as eDividend payments, eWarrants, and eNotices. These advancements have streamlined the process for issuers while ensuring that shareholders receive their entitlements promptly and securely.

The strategic outlook for the CDS is now centred on the newly formed Research and Development Unit, which is essential to the organization’s vision for the future. This unit functions as a Project Management Office and is responsible for developing innovative services. By cultivating strategic alliances and international collaborations, the R&D unit ensures that the CDS remains a future forward institution capable of adapting to the evolving needs of the global financial sector.

As the CDS looks toward its 35th year of service, it remains focused on digital transformation, strategic partnerships that power progress, new service offerings and enhanced international relations. The integration of new technologies continues to ensure robust infrastructure for the next generation of market participants.

Head of CDS Nadeera Athukorale commenting on the vision of the CDS, remarked “By balancing its core depository duties with non-core registrar and consultancy services, the CDS has positioned itself for long term sustainability and industry leadership.”

The achievement of one million accounts serves as a testament to the resilience and adaptability of the Sri Lankan capital market infrastructure, demonstrating CDS’ ability to facilitate a growing digitized market while continuing to serve as the backbone of the nation’s investment landscape. (CSE)

Business

TONIK set to become next Sri Lankan hospitality brand reaching the global stage

Published

6 hours ago

2026/03/7

Thilina Walpola

Garfield Bungalow by TONIK

TONIK, a new hospitality venture under Sri Lanka’s Acorn Group, has unveiled its vision to place culture, storytelling and design at the heart of island exploration, positioning itself as the next Sri Lankan hospitality brand to achieve global recognition.

Built on the Acorn Group’s decades of expertise across aviation, travel, logistics and leisure in multiple Asian markets, TONIK aims to elevate Sri Lanka’s tourism by translating the “soul” of destinations into curated experiences. The brand’s philosophy, “Every Stay Is a Story”, treats villas and boutique hotels as “living narratives” shaped by architecture, memory, craft and community.

The venture addresses a key market gap: while Sri Lanka features exceptional independent villas, many struggle with visibility and global reach. TONIK seeks to resolve this by amplifying each property’s unique value proposition – transforming distinctiveness into revenue -generating potential for owners.

“TONIK’s philosophy aligns with the evolution of our industry- where authenticity and meaningful experiences are no longer optional but essential,” said Harith Perera, Partner at Acorn Group. “Sri Lanka’s narrative deserves platforms that elevate its voice globally.”

For property owners, TONIK offers access to Acorn’s intelligence networks across the Maldives, Middle East, Europe and Asia, including insight into High-Net-Worth travel patterns.

CEO Sundararajah Kokularajah said: “By nurturing properties as living narratives, we aim to shape a new chapter for tourism – authentic, future-ready and deeply Sri Lankan.”

By Sanath Nanayakkare

Business

SDB bank relocates Warakapola branch to enhance customer experience

Published

6 hours ago

2026/03/7

Thilina Walpola

SDB bank relocated its Warakapola Branch to a new location with a modern, fresh look and ample parking, further strengthening its commitment to delivering an enhanced, customer-centric banking experience. The newly refurbished branch, located at No. 221/E, Colombo Road, Warakapola, will officially open its doors to customers.

The relocation reflects SDB bank’s ongoing efforts to adapt its branch network to today’s banking requirements, ensuring clients enjoy a refreshed, welcoming, and efficient service. The upgraded branch features contemporary design and improved facilities, providing greater convenience and a seamless banking experience for individuals, entrepreneurs, and businesses in the Warakapola area.

As part of its continuous transformation journey, SDB bank has prioritised innovation and service excellence in reimagining the Warakapola Branch. The new premises have been thoughtfully designed to meet evolving customer needs while fostering stronger engagement with the local community and business sector.

Kapila Ariyaratne, Executive Director / Chief Executive Officer of SDB bank, stated, “The relocation of our Warakapola Branch reflects SDB bank’s dedication to providing our customers a modern and enhanced banking experience with convenience and personalised service. This modern space is designed to meet evolving needs while reinforcing our strong ties with the local community. We remain committed to delivering innovative and customer-focused financial solutions that support regional and national growth.”

The enhanced branch environment is expected to serve both existing customers and new clients in the region, reinforcing SDB bank’s growing island wide presence. Through this relocation, the Bank continues to demonstrate its commitment to sustainable growth, service excellence, and meaningful community engagement.

SDB bank invites its valued customers and the Warakapola community to visit the new branch and experience the enhanced facilities firsthand.

A future-ready bank, dedicated to offering customer-centric and comprehensive support tailored to each individual’s needs, SDB bank is a licensed specialized bank regulated by the Central Bank of Sri Lanka, with a listing on the Main Board of the Colombo Stock Exchange and a Fitch Rating of BB +(lka).

Through the network of 94 branches island-wide, the bank provides a comprehensive range of financial services to its Retail, SME, Co-operative, and Business Banking clients across the country. Environmental, Social, and Governance (ESG) principles are deeply ingrained in SDB bank’s ethos, with a steadfast focus on uplifting local communities and businesses through sustainable practices. The bank is particularly committed to promoting women’s empowerment, sustainable development of SMEs, and digital inclusion, aiming to propel Sri Lanka to new heights.

Ceremonial opening of SDB bank Warakapola Branch

From left to right,

Binesh Aravinda – Head of Branch Banking – SDB bank,.A.D.Walisinghe – Chairman Kegalle Sanasa District Union, Kapila Ariyaratne – Executive Director/ Cheif Executive Officer – SDB bank, Chitral De Silva – Cheif Business Officer – SDB bank