Business
No second chance for Sri Lanka, says CB Governor
Turn this crisis into an opportunity – ADB
By Sanath Nanayakkare
Sri Lanka will have no second chance if this time it forgets why it took the Extended Fund Facility from the IMF and goes back to doing things that create fiscal imbalances, like in the past 16 programs with the IMF, Central Bank Governor Dr. Nandalal Weerasinghe warned on Tuesday.
The Governor conveyed this well-informed message to all stakeholders in Sri Lanka at the Asian Development Bank’s “Serendipity Knowledge Program” (SKOP) event, at the Cinnamon Grand Colombo. ADB’s SKOP also saw the launch of the Asian Development Outlook for 2023.
Inviting the CBSL Governor as keynote speaker of the event, Chen Chen, Country Director, Sri Lanka Resident mission ADB, urged Sri Lanka to turn the current economic crisis into an opportunity and go for deep, comprehensive reforms to address the long standing issues inflicting the economy, assuring that the ADB will remain steadfast in its support to Sri Lanka.
“In 2022, ADB provided emergency support to sustain Sri Lanka’s basic services and livelihood and to mitigate the impacts of the economic crisis on the people, particularly on the poor and vulnerable groups. We also supported the essential trade facilitating the importation of medicine and fertilizers. ADB worked very closely with the private sector, the civil society and development partners to maximize the impact of its emergency assistance. We will continue this collaborative approach in ADB’s future assistance to Sri Lanka. One year on, since the unprecedented crisis, we hope the worst is already behind us. However, there are lessons to learn from the crisis. Moving beyond the near term outlook, the main question remains on tackling the long standing challenges of Sri Lanka. Although the country has come a long way since last year, there is a long road ahead for economic recovery. I hope this discussion and insights into ADB’s outlook for 2023 will help understand and navigate the uncertainties that lie ahead.”
Later on Dr. Nandalal Weerasinghe in his keynote speech said:
“The root cause of the economic crisis was the long standing fiscal imbalance we have carried forward over a long period of time. There is empirical evidence to show that structural fiscal imbalances and the current account balance had a strong association to the economic crisis. Sri Lanka is a classic case of a twin-deficit country over several decades. As a result, we have been experiencing recurring Balance of Payment (BOP) issues. This is the reason why we have sought IMF bailout packages for 16 times and the latest rescue package is Sri Lanka’s 17th IMF programme. This time it is different from the past because we are not only in a BOP crisis, we are also in a sovereign debt crisis–both occurring together. That’s why it is much more difficult and complex this time. We had to continuously seek bailout packages because we have never been able to address the fiscal imbalance on a permanent basis. The key theme of any IMF programme was revenue-based fiscal consolidation and some structural reforms related to fiscal imbalances. We agreed with certain policy packages with the IMF, got some money and focused on stabilization in the beginning and we even completed two three programmes successfully; for example from 2009- 2012 after the end of the war.
“But soon after completing the programme or in between , after achieving stability, we had forgotten why we took those loans; why we agreed with those bailout packages and took two steps backward without going forward. It made us go back to the same crisis creating current account imbalances, depletion of our reserves, depreciating our currency and thereby resulting in a repetition of the vicious cycle. As a result, the country came to a point of unsustainable sovereign debt situation. If we had sought an IMF bailout when we saw the balance of payment crisis coming, we could have stabilized the economy without landing on an economic crisis. In the past, people didn’t feel the pain of the crisis as a lot of people hadn’t known there was a looming BOP crisis. If we had taken timely action, we could have at least stabilized the situation without addressing long term structural issues.
“The lesson learned from this was to seek assistance without being too late so that people wouldn’t have felt so much pain arising from a crisis that led to hyper-inflation. All what the Central Bank did was aimed at avoiding the collapse of the economy and preventing the social and political unrest. Certain analysts claim that the Central Bank contracted the economy with its tight monetary policy and other policies. My argument is; due to the BOP crisis, the economy was going to collapse and we were able to limit the contraction to 7.8% last year. This is not a happy situation, but still the contraction was minimized and hyper- inflation was reversed despite many had thought it would go spiral over 100%. It is the fiscal policy that has to implement cost reflective utility prices and address revenue and expenditure, and also address expansive monetary financing which was the root cause of the hyper-inflation experience d last year.”
“The key lesson I learned from this crisis was; for Sri Lanka, I don’t think we have a second chance this time. We can’t afford to what we did with our past IMF programmes- take one step forward and stabilize and then take two steps backward and cause fiscal imbalances. This time we have no chance. This is why we need strong commitment from all stakeholders of the country to take forward the 4-year IMF extended facility and implement the targets of the IMF which are also the benchmarks of the government.
“This time we need to be able to not just meet those targets, but outperform them and get out of the crisis for good.”
By Ifham Nizam
Australian High Commissioner to Sri Lanka Matthew Duckworth described Omega Traders’ latest investment in a modern dhal-processing facility as a strong example of how cross-border supply chains can translate into productive investment, local value addition and new business opportunities in Sri Lanka.
The investment, which adds a 150-metric-tonne-per-eight-hour-day processing capacity to Omega Traders’ operations, marks a significant expansion of the company’s manufacturing footprint as it celebrates 45 years in Sri Lanka’s food commodity industry.
Speaking at the inauguration of the new Lentil and Orid Dhal Processing Factory in Wattala, last Friday, H.C. Duckworth said the facility represented more than an increase in production capacity, pointing to the wider economic value created when Australian agricultural production is connected with Sri Lankan processing and distribution.
‘This facility is not operating on its own. It is part of a long supply chain and a trade partnership between Sri Lanka and Australia, Duckworth said.
His comments placed the Omega Traders’ investment within a broader commercial context: Australia brings agricultural production and established export capabilities, while Sri Lanka provides processing capacity, labour, market access and opportunities for further value addition.
The investment comes as Sri Lanka continues to look towards greater domestic processing and value-added manufacturing rather than relying solely on the import and distribution of finished commodities.
Dr. (Mrs.) Siddhika G. Senaratne, Director General/CEO of the Sri Lanka Standards Institution (SLSI), who attended the inauguration as Guest of Honour, highlighted the importance of quality assurance in food processing and the role of standards in maintaining confidence across the supply chain.
The facility is equipped with new-generation cleaning, processing, sorting and quality-control machinery, including advanced colour-sorting technology, automated systems and an in-house quality-control laboratory.
The additional capacity will support Omega Traders’ three principal Mysoor Dhal brands — Rainbow Jumbo Dhal, Komas Dhal and Rozanna Dhal — which serve different segments of the Sri Lankan market.
But the investment also has a distinctly local agricultural dimension.
Through its Orid Dhal operation, Omega Traders plans to source locally grown black matpe from Sri Lankan farmers and process it at the new facility.
That creates a domestic value chain linking farmers to industrial processing and consumers, while potentially increasing demand for locally produced agricultural commodities.
Duckworth said this type of business partnership could generate benefits for both countries.
‘Australia produces some of the world’s best agricultural products and we are very efficient and very capable at trading them. But that alone is not going to bring success to Australia. Just as building a factory like this is not going to bring success to Sri Lanka, he said.
‘It’s when we bring these entities together that our products produced in Australia can be processed in excellence here in Sri Lanka that enables this to be a success, the H.C. explained.
The investment therefore combines two complementary supply streams: imported agricultural commodities, including Australian-origin products, and locally produced black matpe for the Orid Dhal operation.
For Sri Lanka, the business significance extends beyond Omega Traders itself. Increased processing capacity creates demand for logistics, packaging, distribution, services and agricultural inputs, while supporting employment within the food-processing ecosystem.
HR-led transformation places people, culture and business performance at the heart of the organisation
Ideal Motors (Pvt) Ltd,has achieved a significant milestone by securing multiple prestigious workplace and organisational culture accolades in 2026, reinforcing its position as an employer of choice in Sri Lanka’s automotive sector.
Among its latest achievements, Ideal Motors has been recognised as one of the 20 Great Workplaces for Young Talent in Sri Lanka 2026, ranked No. 1 and awarded the Gold Medal in the Small and Medium category of Best Workplaces™ in Sri Lanka 2026, and ranked No. 18 among Best Workplaces™ in Asia in the Medium Scale category—the highest-ranked Sri Lankan organisation in the category. The company also received Industry Excellence for Workplace Culture – Trading Industry.
The Young Talent recognition was presented at the Great Place To Work® CXO Forum 2026 held on 10 September 2026 at Cinnamon Life, Colombo. The recognition followed an evaluation of more than 100 certified organisations and highlights workplaces that create meaningful opportunities for employees under 35 to develop, contribute and grow.
At the Best Workplaces™ in Sri Lanka Awards Gala 2026, held on 11 September 2026 at Cinnamon Life, Colombo, Ideal Motors achieved another historic milestone by entering the Best Workplaces Sri Lanka list for the first time and securing the No. 1 Gold Medal in the Small and Medium category. The company also achieved No. 18 in Best Workplaces™ in Asia, reflecting the strength of its workplace culture beyond Sri Lanka.
These achievements represent more than a collection of awards. They reflect the transformation taking place within Ideal Motors, where people, culture and business performance are increasingly viewed as interconnected drivers of sustainable growth.
Over the past few years, the organisation’s HR function has evolved from a predominantly administrative role into a strategic business partner, with greater emphasis on employee experience, capability development, engagement, performance, communication, wellbeing, diversity and inclusion, and data-driven HR practices.
The Automobile Association of Ceylon (AAC) conducted a seat belt safety awareness programme in front of its headquarters and along Galle Face Centre Road, encouraging motorists and passengers to make seat belt use a habit on every journey.
AAC staff, working alongside officers of the Sri Lanka Police Traffic Division, distributed specially designed hanging tags and stickers to drivers. The material carries a clear reminder that seat belts protect drivers as well as passengers in both the front and rear seats.
The public awareness drive was held ahead of the requirement taking effect on 20 September 2026, under which seat belt use becomes mandatory for every occupant of a vehicle travelling on an expressway.
AAC emphasized that the regulation should be understood as a life-saving measure rather than only a legal obligation. Wearing a seat belt can help prevent occupants from being thrown inside or from a vehicle during a collision and can lessen the severity of injuries.
The Association said road safety legislation must be supported by sustained public education, visible enforcement and responsible behaviour by all road users. The participation of the Traffic Police helped the campaign reach motorists directly in a busy part of central Colombo.
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