Business

Lessons for Sri Lanka from Korea’s experience in innovation

Published

2 years ago

2024/08/27

L-R, Executive Director of LKI, Amb. Ravinatha Aryasinha, ambassador of Korea to Sri Lanka, Miyon Lee, Country Representative, The Asia Foundation Korea Office, Dr. Kyungjin Song.

The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), in collaboration with the embassy of Republic of Korea in Sri Lanka hosted a seminar titled, “Economic Security in the Indian Ocean Region; Prospects for Collaboration between Sri Lanka and Republic of Korea” on August 21. It was attended by ambassadors and diplomats, representatives of international organisations, senior officials of the Ministry of Foreign Affairs and other relevant ministries and agencies, business persons, leading researchers and university students.

Extracts of an LKI press release: ‘Welcoming the gathering, Executive Director of the LKI, Ambassador Ravinatha Aryasinha, said the main purpose of the seminar was to examine the lessons Sri Lanka could learn from ROK’s experience in science and technological innovation. Setting the context for the event, Ambassador Aryasinha highlighted the current shortcomings in the country’s R&D efforts noting that the country’s annual R&D expenditure stands at a low 0.12% of GDP. He hoped that the discussion would address this lacuna and suggest tangible proposals on how to cultivate a more innovative society that values research and development and specific projects that can be operationalized in this regard.

‘Miyon Lee, Ambassador of Korea in her opening remarks highlighted Korea’s historical and ongoing efforts in transforming its economy globally, with a focus on economic security to protect supply chains and ensure technological leadership. She identified two critical elements for achieving this transformation: ‘Intellectual Property Rights (IPR) protection’ and the development of an ‘innovation ecosystem’. Ambassador Lee also highlighted the relevance of this discussion for contemporary Sri Lanka, which is emerging from an economic crisis and is seeking to adopt export-oriented policies and attract more Foreign Direct Investments (FDI). She outlined three key aspects of Korea’s economic transformation. First, Korea has greatly benefited from the global liberal market system, rule of law, and democratic values. Second, the private sector and civil society play a crucial role in driving innovation and resilience. Third, effective political leadership and bureaucratic efficiency are essential for implementing necessary policies. She also emphasized Korea’s vision for a free, peaceful, and prosperous Indo-Pacific region.

‘Dr. Kyungjin Song, Country Representative of the Asia Foundation Korea Office, led the first session of the seminar. Her presentation focused on the evolution of Korean economic statecraft over the past sixty years and explored potential future collaborations between Sri Lanka and South Korea. She highlighted three key elements of Korea’s economic development: institution building and capacity building, innovation, and entrepreneurship.

‘Dr. Song noted that in 1962, when Korea launched its first five-year economic development plan, its major exports included iron ore, tungsten, anthracite, raw silk, and squid. By 2023, ROK’s primary exports had shifted to semiconductors, automobiles, petrochemicals, synthetic resin, auto parts, and ship building. In her presentation, Dr. Song highlighted a crucial moment in Korea’s economic history. She described how, during the late 1960s and early 1970s, as many Korean students were emigrating to the U.S. for higher education, ROK made a strategic move. The establishment of the Korea Development Institute (KDI) was a key initiative by the Korean government to harness global talent.

‘Dr. Song explained that KDI’s leadership, under the president’s direction, traveled abroad to engage with these scholars, experts, and bright minds, persuading them to return to ROK to contribute to ROK’s economic development. This played a crucial role in Korea’s rapid economic transformation. Dr. Song also shared valuable lessons from the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis, and proposed potential areas for collaboration between Sri Lanka and the Republic of Korea. She suggested opportunities in renewable energy investments and noted that Sri Lanka’s graphite, an essential raw material for South Korea’s semiconductor, battery, and automobile industries, could be a valuable resource for future cooperation.

‘The panel discussion that followed was moderated by Prof. Ajith De Alwis, Chief Innovation Officer of the National Innovation Agency (NIA) and Senior Professor of Chemical and Process Engineering, University of Moratuwa. The four member panel included Dr. Kyungjin Song – Country Representative of the Asia Foundation Korea Office, Prof. (Dr.) Nishantha Sampath Punchihewa – Dean of the Faculty of Law, University of Colombo and former member of the Intellectual Property Advisory Commission, K.A.Vimalenthirarajah – Director General of the Department of Trade and Investment Policies, Ministry of Finance, and Anushka Wijesinha – Co-founder/Director of Centre for a Smart Future.

‘The question and answer session that followed centered on several key points: the need for supportive policies to boost business activity in the country, leveraging areas where Sri Lanka has competitive advantages and core competencies, such as traditional knowledge, that require minimal investment. The discussion also highlighted the importance of the private sector investing in R&D rather than waiting for government action. Encouraging the diaspora community to seasonally or remotely contribute to Sri Lanka’s economic processes was suggested as a way to address brain drain. Additionally, the government’s strategy of diversifying markets from western to eastern regions while maintaining western market connections was examined. The session also emphasized the need for consistent policy focus, strong political leadership to promote innovation, and seeking investments in R&D in moving up the value chain in existing sectors rather than pursuing entirely new ones.’

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Business

Sri Lanka educates women but keeps many out of work, ADB warns

Published

8 hours ago

2026/06/5

Thilina Walpola

Shannon Cowlin - ADB Country Director for Sri Lanka

Sri Lanka has one of the most educated female populations in South Asia, yet only about one in three women participates in the labour force, making female workforce participation among the lowest in the region and leaving a significant source of economic growth untapped.

That paradox took centre stage at a knowledge forum organised by the Asian Development Bank (ADB) in Colombo on June 3, where government officials, labour authorities, academics and private-sector leaders examined the deep-rooted barriers preventing women from fully participating in the economy and explored reforms needed to unlock their economic potential.

Opening the event, ADB Country Director for Sri Lanka Shannon Cowlin said the issue extends beyond gender equality and has become a critical economic challenge for a country seeking sustained growth and inclusive development.

“Empowering women to participate fully in the labour force is not only a matter of equality; it is essential for inclusive economic growth and poverty reduction in Sri Lanka,” she said.

The forum, held under ADB’s Serendipity Knowledge Programme (SKOP), focused on findings from a recent ADB-supported study exploring the factors behind Sri Lanka’s persistently low female labour force participation.

Cowlin noted that despite notable progress in education and human development, Sri Lanka continues to lag behind on measures of gender equality and women’s economic participation. She said multiple studies have shown that the factors shaping women’s labour force participation are layered, interconnected and multidimensional.

According to the study, many women remain concentrated in informal, low-paid and insecure employment with limited access to social protection and few opportunities for career advancement. Social and cultural expectations continue to place primary caregiving responsibilities on women, often restricting their ability to pursue careers or remain in full-time employment.

The lack of affordable childcare services, unequal access to digital skills and technology, concerns over workplace safety, sexual harassment and inadequate transport options were identified as major obstacles preventing women from entering or remaining in the workforce.

“These are complex challenges that require action from all stakeholders – government, development partners, the private sector, civil society and academia,” Cowlin said.

She stressed that improving women’s labour force participation would require more than isolated policy interventions, calling instead for structural transformation, stronger infrastructure and care services, progressive workplace practices and broader societal changes that improve women’s mobility, safety and economic agency.

The event featured a presentation by Professor Dileni Gunawardena of the University of Peradeniya, who shared findings from ADB’s study on female labour force participation, followed by a panel discussion involving representatives from the International Labour Organisation, the Department of Labour, MAS Holdings and John Keells Holdings.

Panelists discussed measures to improve the enabling environment for women, including greater investment in the care economy, expanded childcare facilities, enhanced skills development, creating safe, supportive workplaces and career pathways for upward mobility.

Participants agreed that increasing women’s participation in the workforce is not merely ‘a nice to have’ but an economic necessity, particularly as Sri Lanka seeks to accelerate recovery, boost productivity and achieve more inclusive growth.

The ADB said Sri Lanka’s economic recovery presents a unique opportunity to address long-standing structural barriers facing women and to build a more inclusive labour market that fully utilises the country’s human capital.

By Sanath Nanayakkare

Business

ComBank offers exclusive financial solutions to the ‘Guardians of the Skies’

Published

8 hours ago

2026/06/5

Thilina Walpola

Hasrath Munasinghe, Chief Operating Officer of Commercial Bank and Air Vice Marshal Rajinth Jayawardena, Director General Welfare of the SLAF exchange the agreement in the presence of representatives of the two organisations.

Reinforcing its commitment to those who serve the nation, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding with the Sri Lanka Air Force (SLAF) to introduce a comprehensive suite of concessionary financial facilities for its officers and other ranks.

The partnership, unveiled in a year that marks the 75th anniversary of the Air Force, which was founded in March 1951 as the Royal Ceylon Air Force, reflects a shared recognition of the critical role played by the SLAF as the steadfast ‘Guardians of the skies,’ entrusted with safeguarding the country’s security and sovereignty.

Under the terms of the agreement, Commercial Bank will extend a range of specially tailored financial products to SLAF personnel, including personal loans, leasing facilities, housing loans and credit cards. These facilities will be offered at concessionary interest rates, alongside concessions on documentation charges, enabling Air Force personnel to access financial support on more favourable terms.

The Bank said the initiative is part of its continuing efforts to deliver best-in-class lending solutions that are both accessible and responsive to the diverse needs of its customers. By offering attractive and affordable repayment structures, the scheme is designed to empower SLAF officers and other ranks to meet their personal financial requirements with greater ease and flexibility.

A key feature of the programme is the ability for beneficiaries to align repayments with their income patterns, ensuring that the facilities remain practical and sustainable over the long term. This flexibility, combined with preferential pricing, is expected to make a meaningful difference to the financial wellbeing of Air Force personnel and their families.

Business

Treasury Bill rate hike compounds stock market volatility

Published

8 hours ago

2026/06/5

Thilina Walpola

The CSE was extremely volatile yesterday mainly due to external and internal negative factors.

‘The escalation of the war situation in West Asia and the proposed tariff hike on Sri Lanka’s exports to the US by the Trump administration are worsening Sri Lanka’s economic woes. Further, the government’s decision to increase the Treasury Bill rate has also created some uncertainty in the market, stock analysts said.

The All Share Price Index was up by 249.83 points, while the S and P SL20 rose by 67.61 points. Turnover stood at Rs 2.79 billion with 11 crossings.

Companies that mainly contributed to the turnover by way of crossings were: Chevron Lubricants 1.5 million shares crossed to the tune of Rs 294 million and its shares traded at Rs 196, TJ Lanka 2.9 million shares crossed for Rs 90.8 million; its shares traded at Rs 31, Citizens Development Business Finance 2.5 million shares crossed to the tune of Rs 80.2 million; its shares traded at Rs 32.50.

ACL Cables 634,248 shares crossed for Rs 60.9 million; its shares traded at Rs 96, CCS 438,000 shares crossed to the tune of Rs 57.4 million; its shares traded at Rs 131, Overseas Realties 991,500 shares crossed for Rs 49.6 million; its shares traded at Rs 50 and Access Engineering 653,000 shares crossed to the tune of Rs 49.3 million; its shares sold at Rs 75.50.

In the retail market companies that mainly contributed to the turnover were; Dialog Rs 133 million (3.2 million shares traded), Seylan Bank (Non-Voting) Rs 110 million (1.7 million shares traded), Colombo Dockyard Rs 96.8 million (751,548 shares traded), Ceylinco Holdings (Non-Voting) Rs 77.5 million (516,000 shares traded), Sampath Bank Rs 74.2 million (530,000 shares traded), JKH Rs 74 million (3.7 million shares traded) and LMF Rs 65 million (781,000 shares traded). During the day 123 million share volumes changed hands in 26272 transactions.

It is said that the manufacturing sector, especially Chevron Lubricants and several other firms performed well, while the banking and financial sector performed too.

Yesterday the rupee was quoted flat at Rs 334.50/335.50 to the US dollar in the spot market on, unchanged from the previous day’s close, dealers said, while bond yields were broadly steady.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was Rs 330.50 buying, Rs 339.50 selling; euro was Rs 381.1884 selling, Rs 395.1054 buying; and the pound Rs 442.6620 buying Rs 456.7076 selling.

A bond maturing on 01.08.2030 was quoted at 12.12/20 percent, down from 12.15.25 percent.

A bond maturing on 15.06.2034 was quoted at 13.12/20 percent, down from 13.15/25 percent.

A bond maturing on 15.03.2035 was quoted flat at 13.15/25 percent.

By Hiran H Senewiratne