Business

Losses incurred by energy utilities threaten stability of banks : Advocata

Published

5 years ago

2022/02/28

The total liabilities owed by the CPC to the country’s two state banks, is a staggering Rs. 707,505 million ( USD3.5 billion) by the end of July 2021

“The losses incurred by energy utilities have been financed by the state banks and have grown so large they now threaten the stability of the banks. The total liabilities owed by the state-owned monopoly, the CPC (Ceylon Petroleum Corporation) to the country’s two state banks, is a staggering Rs. 707,505 million ( USD3.5 billion) by the end of July 2021. Ensuring energy prices are no longer subsidised will reduce further debt accumulation by the state banks,” a press statement issued by Advocata Institute on Saturday said.

Elaborating on the situation Advocata said:

“Sri Lanka pitches into darkness and its people form lines at fuel stations due to the ongoing energy crisis. Fuel, which is the single largest import accounting for 18% of the country’s total import expenditure, cost an alarming USD 3.7 billion in 2021.”

“Since the actual cost of petrol and diesel is significantly higher than the current selling price, it promotes excessive consumption. This is in direct contradiction to the government’s other policies that are aimed at reducing imports.”

“Although there have been some increases in fuel prices recently, they are inadequate. Sri Lanka continues to sell fuel at a significant loss. Diesel is sold at a loss of LKR 46.80, while petrol is sold at a loss of LKR 18.37. Sri Lanka’s price of fuel is also below its neighbours. The selling price of petrol in India is about LKR 259.44, while diesel is about LKR 235.8. The selling price of petrol in Bangladesh is about LKR 202 while diesel sells at about LKR 188.23. Fuel, therefore, continues to be underpriced, highlighting a serious structural flaw in Sri Lanka’s fuel pricing mechanism.”

“Therefore a sharp increase in fuel prices is now unavoidable to prevent destabilising the financial sector and to prevent shortages of fuel supplies. Unless the root causes of the problem are addressed and the interest rates, foreign exchange rates and other key prices within the economy are allowed to be determined by market forces these imbalances will continue to recur.”

“Providing fuel subsidies also disincentives fuel efficiency. According to World Bank estimates the top 30% of society consume an overwhelming 70% of fuel sold in the country. There is little economic sense in channelling public funds to subsidise the relatively well-off segments of society. A direct cash transfer program targeted at vulnerable households requires far fewer funds and will address the needs of poorer segments of society. This will require a re-examination of the Samurdhi scheme.”

“Another key reform should include eliminating the barriers to entry to Sri Lanka’s energy sector. Enhancing competition by allowing more players to operate in the market is the only means of achieving both stable supply and stable prices in the long term.”

“Instead of continuing with the general subsidy, the government should consider introducing a market-driven pricing formula to determine prices at the pump. Immediate and urgent measures to bring about macroeconomic stabilisation needs to complement these reforms if the country is to come out of this difficult situation,” Advocata said.

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Business

Charting a worker-centered AI future: Colombo hosts landmark ITF conference

Published

8 hours ago

2026/09/21

Thilina Walpola

The ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka

By Sanath Nanayakkare

Artificial intelligence and automation present serious challenges for workers – such as job consequences seen in docks and rail systems – and emphasises that workers cannot simply stop technological progress. By gathering young trade unionists in Sri Lanka, the ITF aims to establish key principles for engaging with technology, ensuring workers have a strong voice at the bargaining table, and encouraging constructive social dialogue with corporations and governments.

These compelling words from ITF General Secretary Stephen Cotton underscored the urgent reality facing modern labor as rapid technological advancements sweep across global industries.

Confronting this shifting landscape head-on, the International Transport Workers’ Federation (ITF), in partnership with the National Union of Seafarers of Sri Lanka (NUSS), convened a ground-breaking conference on artificial intelligence in Colombo from September 15–17.

As the ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka, the landmark event marked a critical milestone in balancing technological innovation with worker-centered safeguards.

Representing over 16.6 million transport workers worldwide, the ITF designed the gathering to tackle the multifaceted impacts of AI on safety, operations, workforce development, and governance. Rather than resisting progress, the conference focused on proactive engagement, establishing guiding principles to protect workers’ rights and privacy both at sea and on land.

Key discussions centred on sharing best practices for upskilling and reskilling transport personnel, ensuring that human oversight remains central to AI-driven logistics, routing, and maintenance.

Reflecting on the historic nature of the event, Boa Athu, CEO of National Union of Seafarers Asia Pacific, noted that the conference represented a monumental moment as AI emerges as a permanent fixture of contemporary life.

Highlighting NUSS’s pride in hosting the event in Colombo, Athu emphasised that AI offers transformative potential when guided by strong social dialogue, equitable access to training, and robust governance safeguards.

Ultimately, the Colombo conference demonstrated that the future of transport must be shaped by those who keep the world moving. By uniting international labour leaders, affiliates, port operators, and regulators, the event laid a vital foundation for inclusive policy frameworks that champion fair labour standards, securing a powerful voice for workers in an automated tomorrow.

Business

Bridging the digital divide: Sri Lanka’s airport licence challenge

Published

8 hours ago

2026/09/21

Thilina Walpola

As tourism surges from digitally advanced markets like India, modern independent travelers arriving at BIA find themselves caught in a mismatch between cloudstored credentials and local paper-based transport protocols.

By Sanath Nanayakkare

As Sri Lanka experiences a surge in visitors from its largest tourist market, India, a modern administrative hurdle has emerged at Bandaranaike International Airport (BIA).

While nations like India and Pakistan have successfully transitioned to fully digital driving licences and cashless ecosystems, Sri Lanka’s Department of Motor Traffic counter still requires a physical card to issue temporary local permits, The Island Financial Review learns.

This mismatch creates significant friction for independent travelers who rely entirely on smartphones and cloud-stored credentials. Tourists turned away at the airport – and sometimes redirected to the Werahera office in vain – find themselves unable to legally rent and drive vehicles. Consequently, this policy gap harms local car rental operators, causes tourist frustration, and deprives the government of valuable permit revenue.

The situation highlights a distinct irony: Sri Lankan motorists easily travel abroad using International Driving Permits that are readily accepted in India and Pakistan, yet local infrastructure cannot reciprocate due to outdated verification systems.

Recognizing the problem, Department of Motor Traffic officials have noted that upgrades and new equipment are currently in the works to integrate foreign digital platforms.

For a nation aggressively pursuing a national digitalisation drive, rapidly modernising these transport protocols is essential to keeping pace with global travelers and unlocking the full potential of its tourism economy.

Business

International Afro-Latin Dance Festival in Colombo to grow into a larger regional tourism draw

Published

8 hours ago

2026/09/21

Thilina Walpola

Founder X Director – ALIF – J D RUBAN

ALIF-SL, Sri Lanka’s first-ever international Afro-Latin dance festival, returns for its 4th edition from 25 to 27 September 2026 at the Galle Face Hotel, Colombo. The festival will bring together over 30 international and national artists and 175–200 participants from more than 20 countries, reaffirming its place as the region’s leading platform for Salsa, Bachata and Kizomba.

This year’s edition is headlined by Tropical Gem, the world’s No. 1 salsa team, travelling from Italy to perform and teach alongside a stellar international line-up. Attendees can also look forward to the ALIF Cup Sri Lanka Open, a keenly contested competition judged by an international panel, giving local dancers a rare opportunity to compete and connect with world-class talent.

“Every year, ALIF connects Sri Lanka to the world. With this year’s artist line-up and the ALIF Cup competition, we’re not just hosting a festival, we’re putting Sri Lanka on the map as a top destination for dance,” said JD Ruban, Founder and Director of ALIF-SL

Beyond the dance floor, ALIF-SL continues to support Sri Lanka’s tourism sector, drawing dancers, judges and enthusiasts from across the globe to Colombo and positioning the capital as an emerging regional hub for social dance. Organizers plan to grow the festival into a larger regional tourism draw, introduce new competition categories, and bring in even bigger headline acts in future editions.