Business

NCC focusing on SDGs, inclusivity and equality

Published

4 years ago

2022/02/5

Speech by the President of National Chamber Nandika Buddhipala 63rd Annual General Meeting

I am honored to be elected, as the President of this prestigious Chamber for the second term, and I assure with confidence and pride that I will take forward the good work done by my predecessors to take the Chamber to greater heights.

I am taking over the Presidency of this Chamber at a very critical period for the world economy as well as the Sri Lanka economy. Sri Lanka economy is facing many internal and external challenges. I think it is pertinent to discuss certain post Pandemic global economic and geopolitical emerging issues which would have ramifications to developing world similar to us very briefly.

GOBAL ECONMOY AND LOCAL ECONOMY – Roadblocks and Sustainable Pursuits

It is expected that the global growth would reach 5.3 per cent in 2021, however, reducing the momentum 3.6 per cent in 2022. In 2020-22, it is estimated that the global economy faces a cumulative income loss of about USD 13 trillion. The expectation of inducement of demand stimulus and improving transformative public investment programmes in the medium and long run are restricted by increasing inflation expectation in developed and developing economies where US reaching inflation level of 7% after may be 40 years of history raising doubts whether such inflation may not be transitory in nature.

The international think tanks including United Nations recommend that conventional wisdom, which attempts to control inflation through wage reduction would not auger well for the sustainable development of the world economy at this juncture. Such agencies further warned that strategy adopted by many countries through slowing demand growth by putting stop to the stimulus packages would not stop inflation, since its source is imported inputs, including commodities.

The multilateral financial institutions have highlighted the fact that there is a compelling requirement to look at current issues in a different angle where simple market operations proclaimed by the conventional wisdom may not provide solutions to such issues; hence, need to embark on big spending programmes, initiatives to tax the rich and curtail the power of monopolies, recognition of the role of targeted capital controls, an endorsement of a strongly interventionist policy agenda to take care of green investment push.

The developed countries have been able to take care of such aspects through increase of financing due to their privileged status of issuers of international-reserve and trade currencies whereas developing countries are not in a position to adopt such strategies continuously without having complicated economic impacts. Therefore, developing countries are encountered with more immediate and serious challenges where their restrictive fiscal space, ever increasing debt burden and failure to implement sustainable vaccination programme for Covid19 having serious divergence and enlarging difference with their developed counterparts.

UNCTAD (United Nations Conference on Trade and Development) in their recent publication, Trade and Development Report 2021, critically examined current challenges encountered by developing countries. They are of the view that building protection against the vagaries of global finance is critical for developing countries and it is required to start with a proper evaluation of sovereign and private debt burdens and repayment profiles, which affect development strategies but also crisis response. Even though they recognize that debt re-profiling and relief, including debt cancellation, are necessary, they further emphasized that the multilateral relief provided by IMF through cancellation of debt service obligations and the expansion of SDR allocations between April 2020 to October 2021 has been insufficient and only a symbolic measure.

UNTACD further commented that developed countries having similar debt ratios to developing countries also have been able to weather through issues and recorded positive economic growth thanks to their ability to issue reserve currencies.

Globally, several issues continue to gather growing priority: the focus of the G20 is on the importance of initiatives such as, inclusive collaboration, global health, digital transformation and sustainable energy. The focus of the UN and its sustainable development goals remains on alleviating poverty, which requires strong radical focus on improving health and education sectors, on reducing inequalities, and in putting into action measures and solutions to tackle climate change, to protect our planet’s natural resources and biodiversity.

However, businesses are not only responsible for creating economical value for stakeholders, but are increasingly expected to adapt to these global demands and adopt inclusive, equitable and collaborative efforts in creating sustainable growth for people and the planet.

For Sri Lanka, there are several major roadblocks that need to be dealt with before we persistently contribute to these global agendas. The nation was gutted by safety and health concerns, however, has been able to manage rapid vaccination program successfully, slowdown of commercial activities and tourism due to the pandemic; in addition to these, the country’s debt vulnerabilities and dwindling Forex reserves made a deepening chasm in economic progress and social development. Nevertheless, the country is gradually dealing with each challenge, pressing on despite impediments.

As depicted in The Vision of National Chamber, to be the leading source of services and assistance to businesses countrywide for promotion of domestic and foreign trade with special emphasis on the development of Micro, Small and Medium Enterprises. We have carried out many activities as I will discuss.

PROMOTION OF INTERNATIONAL TRADE AND INVESTMENTS

International connectivity

The National chamber strongly believes in creating connectivity between local entrepreneurs and international markets where we need to find national and international market opportunities for MSMEs in the country. We understood the importance of conducting virtual B2B meetings with the support of our diplomatic services and foreign ministry together with our linkages with other Chambers throughout the world in the absence of available opportunities in exchanging trade delegations physically due to prevailed Pandemic situation during last year.

We have already concluded several B2B virtual Business Forums with Turkey including Adana Chamber of Commerce and Adana Chamber of Industries with the participation of more than 60 companies from both sides. We have further signed MOUs with other regional chambers in Turkey such as Sinop Chamber of Commerce, Aegean Chamber of Commerce and Erzurum Chamber of Commerce and Industries as well.

We have signed MoU with the Oman Chamber of Commerce and Industries and conducted a business forum with the participation of government authorities from both sides and a B2B meeting virtually, bringing in more than 50 business companies together.

Chamber has been able to conduct a Business Forum with Japan with the support of Sri Lankan Embassy in Japan, Japanese Embassy in Colombo, and the Sri Lanka Business Council of Japan. More than 60 Sri Lankan companies were connected for the business forum.

We further conducted a virtual Business forum and B2B meeting with Kuwait Chamber of Commerce and Industry with the participation of BOI, EDB Sri Lanka and their counterparts in Kuwait. More than 40 business companies participated for the virtual B2B exercise.

Even in the midst of Pandemic threats, Chamber has been able to welcome 18 member south Indian power-loom sector business delegation visited the chamber who are interested in investing in Sri Lanka and managed to conduct physical meetings with delegation from Hungary with 14 Hungarian companies connecting over 45 Sri Lankan companies with them on B2B physical interaction in January 2022.

Chamber signed a MoU with Union of Asian Chambers (UAC) of the Confederation of Nepalese Industries (CNI) in October 2021.

We were able extend our cooperation for the virtual Bangladesh Trade and Investment Summit took place in October last year in the strength of our existing MoU with Dhaka Chamber of Commerce and Industry.

Support Extended by Sri Lankan Missions overseas

We are happy to place on record that the supports extended by Sri Lankan ambassadors in other countries are commendable. We appreciate support extended by our ambassadors and commercial officers in Turkey, Japan, Oman, Kuwait, UK USA, Russia and Nepal. We also would like mention the enthusiasm shown by our own business community in these activities were overwhelming even during the pandemic period.

Support Extended by the Government authorities

It is noteworthy that all the activities carried out by the National Chamber were well supported by government entities such as EDB, BOI, Colombo Port City, Department of Commerce, Foreign Ministry, Ministry of Industries and National Enterprise Development Authority (NEDA) etc.

Commercial Officers posted to our foreign missions out of Sri Lanka

As a part of regular activity of hosting commercial officers posted to our foreign missions out of Sri Lanka, officers assigned to Bangladesh, Belgium, France/Paris, India/New Delhi, Malaysia/Kuala Lumpur, Pakistan/Karachi, Singapore, Sweden/Stockholm, Thailand/Bangkok, USA/Los Angeles, USA/Washington DC were invited for an online meeting which was open to business community both corporate sector and regional MSMEs with an objective to support much needed exports and FDI for the economy.

REGIONAL INTEGRATION AND SME DEVELOPMENT

Western Province Entrepreneur Awards

Chamber together with NEDA (National Enterprise Development Authority) hosted the annual “Western Province Entrepreneur Awards” designed for Micro, Small, Medium and Large sector entrepreneurs in the Western Province last year. We believe that the Award Ceremony encourages entrepreneurs to develop their business processes and functional areas of business, taking into consideration the behavior of those that have succeeded. It is noteworthy that presence of women entrepreneurs has gone up significantly in the recent past where 17 women entrepreneurs managed to secure awards out of 24 awards.

Meeting District chambers and Provincial Chambers

We always wanted to have very close interaction with all the district and provincial chambers in Sri Lanka in our efforts towards the SME and regional development of the country. While we are integrating them in our development activities, I have started personally visiting them where I have already met, Lanka Business Ring (LBR) in Kandy, Jaffna Chamber of Commerce and Chamber of Commerce and Industries of Yalapanam last year and Galle District Chamber of Commerce and Industries, Matara District Commerce and Industry and Hambantota District Chamber of Commerce during January this year. I am planning to visit rest of the district and provincial chambers in the country in the near future.

Partnering with CA Sri Lanka SME task force

National Chamber is proud to be a partner with the CA Sri Lanka SME Task Force, with the objective of securing professional Accountants to mentor Micro and SME businesses throughout the island and Chamber was able to partner with CA SME Taskforce launch of mentoring programme in Jaffna during November 2021 when easing off of pandemic conditions allowed to conduct such a launch physically.

To be continued

All News Advertisement

Business

Low-quality coal shipment affects Lakvijaya coal power plant operations

Published

15 hours ago

2026/03/6

Thilina Walpola

Operations at Sri Lanka’s main coal-fired power facility, the Lakvijaya coal power plant, suffered a significant disruption soon after a new shipment of coal was introduced, raising concerns over generation stability and environmental emissions.

Energy analyst Dr. Vidura Ralapanawa said in a social media post that the plant began using coal from “Ship 11” on Wednesday, following confirmation from officials of the Ceylon Electricity Board (CEB).

However, almost immediately after the new batch of coal was fed into the system, the plant’s generation capacity began to decline due to the poor quality of the fuel.

According to Dr. Ralapanawa, the plant’s output dropped by about 82 megawatts overall. Unit 1 recorded a drop of 45 MW, Unit 2 fell by 15 MW, and Unit 3 declined by 22 MW shortly after the coal was introduced.

The situation worsened later in the night when two coal mills in Unit 3 reportedly became clogged around 11 p.m., causing a rapid fall in generation capacity. Unit 3, which normally operates at a higher output level, was said to be running at around 170 MW following the malfunction.

Coal mills are a crucial component in coal-fired power generation. They grind raw coal into a fine powder before it is fed into the boiler for combustion. Each generating unit at the Norochcholai facility is equipped with five coal mills, and any obstruction in these systems can severely affect plant operations.

When mills become clogged, plant operators often have to rely on diesel-fired burner guns to stabilise the flame inside the boiler. While this helps maintain combustion, it significantly increases operating costs because of the high price of diesel.

The heavy use of diesel has another consequence. According to Dr. Ralapanawa’s post, when diesel firing increases, the plant’s Electro-Static Precipitators (ESPs) must be shut down. ESPs are designed to capture and remove particulate matter such as fly ash before emissions are released through the chimney.

With the ESPs switched off, large amounts of fly ash may be released into the atmosphere, potentially affecting surrounding communities.

Dr. Ralapanawa further noted that the coal shipment appears to have low calorific value, low volatile matter, and high ash content, all of which reduce combustion efficiency. In addition, the coal reportedly has a low grindability index, making it harder to pulverise and increasing the likelihood of mill blockages.

He added that while the immediate clogging of the mills may be cleared within a day, the underlying quality issues with the coal could make the problem persistent.

The development comes amid earlier assurances from officials of the Ceylon Electricity Board that the Norochcholai plant could be operated effectively even with lower-quality coal supplies.

The Norochcholai facility, with an installed capacity of 900 MW, is the largest power station in Sri Lanka and a critical component of the national grid. Any disruption to its operations can have wider implications for the country’s electricity supply, potentially forcing the system to rely on more expensive oil-based power generation.

Engineers are currently working to address the clogged mills and stabilise generation, but energy analysts warn that unless the fuel quality improves, similar operational issues could recur.

By Ifham Nizam

Business

CSE regains some positive terrain but challenges remain

Published

15 hours ago

2026/03/6

Thilina Walpola

CSE trading yesterday was positive overall on account of local economic growth prospects but concerns deriving from West Asian tensions lingered.

The market is still recovering from previous days’ uncertainties, market analysts said.

The All Share Price Index went up by 256 points, while the S and P SL20 rose by 63.8 points. Turnover stood at Rs 5.68 billion with nine crossings.

Seven crossings were reported in HNB Finance where 130 million shares crossed to the tune of Rs 1.1 billion; its shares traded at Rs 8.50, LMF four million shares crossed for Rs 348 million; its shares traded at Rs 87, Commercial Bank 661,000 shares crossed for Rs 142 million; its shares traded at Rs 215, Seylan Bank (Non-Voting) 750,000 shares crossed for Rs 49 million; its shares sold at Rs 75.50, ACL Cables 500,000 shares crossed for Rs 49 million; its shares traded at Rs 98, HNB 100,000 shares crossed for Rs 43.2 million; its shares sold at Rs 432 and Access Engineering 500,000 shares crossed for Rs 38.5 million and its shares fetched at Rs 77.

In the retail market companies that mainly contributed to the turnover were; HNB Finance Rs 331 million (34.8 million shares traded), Lanka Credit and Business Finance Rs 184 million (21.6 million shares traded), LOLC Holdings Rs 180 million (320,000 shares traded), Commercial Bank Rs 167 million (774,000 shares traded), Softlogic Capital Rs 138 million (twelve million shares traded), Sampath Bank Rs 124 million (789,000 shares traded) and ACL Cables Rs 123 million (1.26 million shares traded). During the day 330 million share volumes changed hands in 36639 transactions.

It is said that the banking and financial sectors performed well. HNB Finance was active in the financial sector, while Commercial Bank and HNB were active in the banking counters.

Further, National Development Bank has received Colombo Stock Exchange approval in principle to list Rs 16 billion of 11.50, 11.04 and 11.85 percent debentures, it said in a CSE filing.

NDB will issue 120 million Tier 2, listed, rated, unsecured, subordinated, redeemable Basel III compliant GSS+ bonds with a non-viability conversion, at Rs 100 each.

Yesterday the rupee was quoted at Rs 310.70/85 to the US dollar in the spot market, weaker from Rs 310.30/60 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

Business

Indian Ocean under fire: Parliament explodes over the sinking of ‘IRIS Dena’

Published

15 hours ago

2026/03/6

Thilina Walpola

A new crisis looms with a second Iranian vessel at the doorstep

Sri Lanka’s parliament became a secondary battleground yesterday as the sinking of the Iranian frigate IRIS Dena ignited a fierce debate over national sovereignty, regional maritime priciples, and the government’s perceived ‘strategic paralysis.’

While the Navy’s rescue of 32 sailors was initially painted in shades of heroism, Opposition MPs have now unfurled a narrative of missed warnings and geopolitical betrayal.

In a scathing address, Opposition firebrand Chamara Sampath Dissanayake challenged the circumstances of the vessel’s arrival in Sri Lankan waters. The IRIS Dena had been a guest of the Indian Navy during the MILAN-2026 exercises just days prior. Dissanayake alleged that at the conclusion of the fleet review, the vessel was effectively ‘put out’ of India, leaving the crew with no choice but to steer toward Sri Lanka.

“This was a deliberate attempt by the host to put a guest in harm’s way,” Dissanayake charged, stopping just short of naming India directly while making the implication undeniable. He argued that Sri Lanka had been ‘set up’ to deal with the fallout of a targeted strike that occurred only 11 nautical miles from Galle.

The debate took a darker turn when SJB MP Mujibur Rahman dropped a bombshell regarding the timing of the attack. Rahman alleged that the IRIS Dena had signalled for permission to enter Sri Lankan waters 11 hours before it was struck by U.S. torpedoes.

“Why did the authorities keep silent?” Rahman demanded. He blasted the government for failing to act on humanitarian grounds, suggesting that Colombo’s hesitation provided the necessary window for what U.S. Defense Secretary Pete Hegseth termed a ‘Quiet Death.’ Rahman’s critique painted a picture of a government ensnared in superpower machinations, unable to uphold the principles of the Indian Ocean as a ‘Zone of Peace.’

Responding to the barrage of questions, Cabinet Spokesman Dr. Nalinda Jayatissa confirmed a chilling new development: a second Iranian vessel is currently positioned in the Exclusive Economic Zone (EEZ) off Colombo.

While Jayatissa assured the House that the President and the Security Council are ‘fully aware’ and making ‘necessary interventions’ to protect those on board, the lack of specific details fueled further anxiety. Political analysts suggest that the government’s failure to announce a clear, proactive neutral policy has left it in a state of ‘vacillation,’ unable to decide whether to grant refuge to the second ship or risk another tragedy on its doorstep.

The parliamentary clash was punctuated by the visit of former president Ranil Wickremesinghe to the Iranian Embassy yesterday to offer condolences for the passing of Supreme Leader Ayatollah Ali Khamenei. Wickremesinghe had warned on March 2 – just 48 hours before the sinking – that the current ‘leadership eviction’ methodology in the Middle East could destabilise the Indian Ocean.

As the death toll from the IRIS Dena stands at 87 with 60 still missing, the ‘can of worms’ opened in parliament reveals a nation at a crossroads. The government’s silence during the Dena’s final hours and its current ‘intervention’ with the second vessel will likely define Sri Lanka’s standing in a rapidly fragmenting global order.

As the House adjourned, one question remained hanging in the air: In the face of a superpower conflict, does Sri Lanka have the ‘backbone’ to be truly neutral, or is it merely a spectator to its own maritime destiny?

by Sanath Nanayakkare