Business

Lessons for Sri Lanka from Korea’s experience in innovation

Published

1 year 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

Redefining Industry Standards: Home Lands Group Emerges as Sri Lanka’s Premier Force in Lifestyle and Developer Leadership

Published

15 hours ago

2026/01/19

Thilina Walpola

At a time when Sri Lanka’s property landscape is experiencing rapid transformation, one organisation continues to define the direction of the market through scale, innovation, and an unwavering commitment to quality. At the 2025 PropertyGuru Asia Property Awards (Sri Lanka), the Home Lands Group of Companies maintained its place at the peak of the industry, acquiring two of the most influential awards of the year: Best Developer for the Group and Best Lifestyle Developer for Home Lands Skyline (Private) Limited.

These distinctions signify more than just project-level success. They reflect the organisation’s leadership in shaping how Sri Lankans aspire to live, work, and invest.

The Home Lands Group has built a broad presence throughout Sri Lanka’s most active corridors, from the rapidly evolving suburbs of Colombo to the developing lifestyle hubs of Negombo, Malabe, and Kahathuduwa, guided by extensive market research. The Group has transformed its in-depth knowledge of the property market into a portfolio of assets embodying superior residential living experiences, supported by strategically located branches that deliver an integrated suite of real estate services for buyers nationwide.

Home Lands Skyline, the Group’s flagship development arm and the 2025 Best Lifestyle Developer, is responsible for this on-ground reach. The company was commended for shaping communities through visionary residential environments and for its ability to combine cutting-edge sustainability with expansive lifestyle amenities. With 19 completed projects, including the largest integrated golf community in Sri Lanka and nine sustainable developments, Home Lands Skyline keeps raising the bar for efficiency, design, and placemaking.

Both ambition and operational strength are evident in its recent accomplishments. The company completed a number of landmark projects such as Elixia 3C’s Apartments, Santorini Resort Apartments & Residencies, and the 1,200-unit Canterbury Golf Resort Apartments & Residencies, which has more than 50 resort amenities that meet international standards and the nation’s first day-and-night golf course. In addition, the Group’s remarkable 58% market share earned it the title of Sri Lanka’s Most Preferred Residential Real Estate Brand in the RIU Brand Health Survey.

This growth is supported by a sustainability-first philosophy. The company incorporates environmental responsibility into every stage of development, from modular construction, renewable energy integration, and ethical sourcing throughout its supply chain to passive design principles that improve natural light and ventilation. This dedication is demonstrated by its Platinum Award at the CIOB Green Awards 2024.

The Home Lands Group is at the forefront of creating new lifestyle expectations as demand for well-planned, resort-style communities rises. In addition to confirming past achievements, the Group’s 2025 victories at the PropertyGuru Asia Property Awards (Sri Lanka) indicate a trajectory of ongoing leadership, positioning it as a transformative force in the future of Sri Lankan real estate.

Business

Cheaper credit expected to drive Sri Lanka’s business landscape in 2026

Published

15 hours ago

2026/01/19

Thilina Walpola

The Central Bank has reported data points that help stimulate private sector investment 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

Published

15 hours ago

2026/01/19

Thilina Walpola

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.