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Noritake Lanka wins ISO-accredited Carbon Footprint verification

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Chief Guest Dr. Anil Jasinghe, Secretary of the Ministry of Environment handing over the GHG Certificate to NLPL’s Deputy Chairman/Managing Director Kenji Obara

Marking another milestone in its 50-year journey of excellence in Sri Lanka, Noritake Lanka Porcelain Pvt Ltd (NLPL) obtained ISO 14064-1:2018 accredited GHG Carbon Footprint Verification, a company news release said.

At an event recently held in NLPL’s Colombo office, Secretary to the Ministry of Environment, Dr Anil Jasinghe, who was also the Chief Guest on this occasion, presented the certificate to Deputy Chairman/Managing Director of NLPL, Kenji Obara.

NLPL is the first company in the porcelain and ceramic sector as well as inorganic and nonmetallic sector in Sri Lanka to receive ISO 14064-1:2018 accredited GHG Carbon Footprint Certification. The latest certification adds to NLPLs previous ISO certifications of ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 for Quality, Environment, Safety & Health respectively, the release said.

“Resting on the pillars of ‘Good quality’, ‘Export’ and ‘Co-prosperity,’ Noritake Group regards the conservation of the environment to be critical for management and seeks to contribute to the realization of a sustainable society through all its business activities. Since Noritake first began manufacturing western-style tableware for export in 1904, it has grown in reach with 25 subsidiaries and seven affiliated companies in Japan and overseas as the Noritake Group. The company began its operations in Sri Lanka in 1973,” it added.

Following the awarding of the GHG Carbon Footprint Verification Certificate, Dr Jasinghe said that minimizing the carbon footprint is very much an integral part of Environmental Social Governance (ESG) which organizations take very seriously today. Sri Lanka Climate Fund affiliated to the Ministry of Environment which is the awarding body of Carbon Footprint Verification, is the first of its kind in South Asia to be accredited and it targets to achieve net zero CO2 by 2050.

“The move towards reducing the carbon footprint also helps businesses to be sustainable,” Dr Jasinghe further said.

Implementing the GHG system at NLPL and obtaining GHG Carbon Footprint Certification is means of benchmarking itself with its parent company in Japan which aims to reduce the CO2 emissions by 50% in 2030 and zero emissions by 2050, remarked the Deputy Chairman and Managing Director of NLPL, Kenji Obara.

“We have formulated this strategy with medium to long-term perspectives in mind,” he noted adding this it is not merely a strategy but a commitment by Noritake towards the world at large.



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CBSL reaffirms commitment to economic recovery

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Dr. Chandranath Amarasekera

By Ifham Nizam

The Central Bank of Sri Lanka (CBSL) has reaffirmed its commitment to stabilizing inflation and supporting economic recovery through a carefully calibrated monetary policy stance. The February 2025 Monetary Policy Report (MPR) outlines key trends in inflation, interest rates and economic growth, offering insights into the nation’s financial future.

To enhance awareness on the report, the Bank hosted two discussions chaired by Assistant Governor Dr. Chandranath Amarasekere, with expert insights from the Director of the Economic Research Department, Directors of the Monetary Policy Committee and technical teams of the Economic Research Department.

The CBSL maintained its accommodative monetary policy throughout 2024, with a notable rate cut in November when it introduced a single policy rate mechanism—the Overnight Policy Rate (OPR)—set at 8.00%. This move effectively reduced interest rates by 50 basis points, a decision aimed at spurring economic activity while keeping inflation in check.

The monetary easing strategy aligns with the CBSL’s broader objective of anchoring inflation expectations, enhancing transparency and fostering financial market stability. As of January 2025, the OPR remains at 8.00%, signaling the bank’s confidence in its current approach.

Sri Lanka experienced deflation in the second half of 2024, driven largely by reduced electricity tariffs, lower fuel prices, and declining food costs. Since September 2024, headline inflation has remained in negative territory, reflecting a sharp drop in consumer price levels.

Looking ahead, the CBSL projects inflation to stabilize around 5% over the medium term. However, short-term risks remain. Inflation may temporarily exceed the target between late 2025 and mid-2026 before normalizing.

The report highlights several key risks to inflation:

Upside risks: Rising global food and energy prices, potential currency depreciation and unpredictable fiscal policies could push inflation higher.

Downside risks: Further price reductions in essential goods and energy could extend the deflationary trend.

The Sri Lankan economy is on a recovery path, albeit at a moderate pace. The CBSL acknowledges that the economy is operating below full capacity, with growth dependent on policy measures and external factors.

Key risks to growth include:

Labour shortages due to brain drain

Uncertain global economic conditions

Impact of climate change on agriculture

Conversely, debt restructuring and tourism recovery could provide much-needed economic momentum.

Despite statistical evidence of falling prices, many Sri Lankans do not feel a significant improvement in their cost of living. The report suggests this disconnect stems from:

Past inflation episodes, which have left prices elevated despite recent declines.

Income levels lagging behind inflation trends, reducing purchasing power.

Psychological and behavioral factors, where consumers may not perceive small price reductions as meaningful relief.

The CBSL’s focus remains on managing inflation expectations, ensuring financial stability, and supporting economic growth. While the current outlook suggests a gradual recovery, external shocks and domestic challenges could still pose risks.

As Sri Lanka navigates its economic future, policy consistency, fiscal discipline, and structural reforms will be critical in achieving long-term stability.

With inflation stabilizing and monetary policy remaining accommodative, the CBSL appears confident in its strategy. However, whether these measures translate into real economic relief for the public remains to be seen.

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Apparel giant Omega Line celebrates 25 years of excellence

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Omega Line Ltd, Sri Lanka’s largest exporter of clothing items to
the European market which produces and exports more than 90 million
clothing items consisting of fashion garments such as bras, briefs, and
beachwear, recently celebrated 25 years of excellence in contributing to
the growth of the Sri Lankan economy.

Founded in 1999 with its first and flagship apparel manufacturing facility in the North-Western province of Sri Lanka, Omega Line has grown to over 4,500 employees at Sandalankawa, and its Vavuniya factory, which is the largest investment in the Northern province, has 2,900 employees. Omega Line is a wholly owned investment of Oniverse (formerly Calzedonia), based in Verona, Italy, and the brainchild of Group President Dott.

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Priorities in Focus: Will Budget 2025 address Sri Lanka’s agricultural challenges?

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Manoj Thibbotuwawa is a Research Fellow at the Institute of Policy Studies of Sri Lanka (IPS) with 

research interests in agriculture, agribusiness value chains, food security, climate change and environmental and natural resource economics. He has more than 19 years of research experience at IPS. . Dr Thibbotuwawa holds a BSc (Agriculture) with Honours from the University of Peradeniya, an MSc (Agricultural Economics) from the Post-Graduate Institute of Agriculture at the University of Peradeniya, and a PhD from the University of Western Australia. He has also obtained a Post-Graduate Diploma in Modelling and Accounting for Sustainable Development from the International Institute of Social Studies (ISS) in The Hague. Dr Thibbotuwawa is a recipient of the prestigious Nuffic Fellowship from the Government of the Netherlands and the Endeavour Award from the Government of Australia.

Lakmini Fernando is a Research Fellow at IPS with primary research interest in Development Economics, Public Finance and Climate Change. She has expertise in econometric data analysis, research design and causal methodologies. Dr Fernando holds a BSc in Agriculture from the University of Peradeniya, a Master of Development Economics (Advanced) from the University of Queensland, Australia and a PhD in Economics from the University of Adelaide, Australia. She was awarded the Dean’s Honour Roll from the University of Queensland for Outstanding Academic Excellence in 2015 and the Dean’s Commendation for Doctoral Thesis Excellence from the University of Adelaide in 2021.

By Dr Manoj Thibbotuwawa and Dr Lakmini Fernando

Public expenditure on agriculture as a share of total government spending has decreased from 6.4% to 2% between 2014 and 2023.

The irrigation subsector receives most of the agricultural spending (41%), with subsidies accounting for a high 26%.

Change to funding priorities necessary to address critical concerns.

The agricultural sector in Sri Lanka has long been a pillar of the nation’s economy, yet its decline reflects a complex interplay of economic shifts, policy decisions, and underutilised potential. Agriculture’s contribution to the overall economy in Sri Lanka has gradually diminished over time, while the agricultural labour force has shrunk at a slower rate. This disparity between a declining sector and a stagnant workforce, coupled with the failure to address structural changes by improving land and labour productivity, has led to poor sector performance, particularly in terms of food security and farm income.

Additionally, unproductive public spending in the form of inefficient allocation, short-term concentration, and neglect of crucial areas is an important contributory factor. In this context, it is crucial to assess whether public expenditure allocation in Sri Lanka has undergone significant shifts aimed at unlocking the agriculture sector’s potential while advancing food security and fostering rural development.

Tracking the Shift: Trends in Public Spending on Agriculture

Over the last decade, Sri Lanka has struggled to spend adequately on agriculture due to competing fiscal concerns. Before COVID-19, total agricultural investment was around LKR 112 billion in real terms between 2014 and 2020. However, due to the impact of COVID-19, it sharply declined to LKR 88 billion in 2021. Since then, agricultural investment has slightly increased, averaging LKR 97 billion in the past two years (2022-2023). Despite an increase in absolute public expenditure on agriculture (PEA), both the GDP share and the percentage of the total budget allocated to agriculture have been declining.

PEA as a percentage of GDP has fallen from 1.1% in 2014 to 0.8% by 2023. Similarly, PEA as a percentage of total government spending has decreased from 6.4% to 2% throughout the same period. Notably, the balance between capital and recurring expenditures has shifted dramatically in favour of more recurrent expenditures during institutional structure changes linked to changes of government, as shown in 2015, 2019, and 2020.

Guiding the Budget: Who Shapes Agricultural Investments?

The agriculture sector in Sri Lanka is primarily managed by the Ministry of Agriculture (MOA), the Ministry of Plantation Industries (MOP) and the Ministry of Fisheries (MOF), as outlined in the Public Investment Programme (PIP). While the land and irrigation sectors are closely linked to agriculture, they fall under the jurisdiction of separate ministries: the Ministry of Lands (MOL) and the Ministry of Irrigation (MOI), respectively. In terms of budgetary allocations, MOA historically receives the largest share, accounting for 51% of agriculture-related expenditures.

This is followed by the Ministry of Mahaweli Development and Environment (MOE) with 23%, and MOI with 13%. MOF and MOP receive smaller allocations, at 3% and 4% respectively. While the nominal PEA has been on the rise, real-term PEA has either declined or remained largely unchanged across all ministries.. However, this does not necessarily indicate whether agricultural expenditures are aligned with sectoral policies, making it challenging to evaluate the effectiveness of spending in addressing critical concerns within the sector.

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