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Pathfinder proposes a Medium and Long-term Strategy for Economic Transformation of Sri Lanka with Indo-Japanese Collaboration

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Pathfinder Chairman Bernard Goonetilleke hands over the report. To High Commissioner Gopal Bagley. Foreign Minister Ali Sabry is also in the photo

The official launch of the Report on “A Medium and Long-term Strategy for Indo-Japanese Collaboration to Support the Economic Transformation of Sri Lanka”, prepared by the Pathfinder Foundation with the assistance of a panel of experts, was held, in Colombo, last week. Foreign Minister, Ali Sabri, was the chief guest while Indian High Commissioner Gopal Bagley, and Japanese Ambassador Mizukoshi Hideaki were also present.

The event was organized in collaboration with the International Trade Centre (ITC), Geneva and attended by representatives from several government and private sector agencies. Bernard Goonetilleke. Chairman, Pathfinder Foundation; handed the Report to Minister Ali Sabry, a Pathfinder news release said.

The report has suggested a strategic response to transforming the economy, focusing on four priority sectors in which Indo-Japanese collaboration is sought to put the country on a sustainable growth trajectory for a structural shift, it explained.

In his welcome remarks, Pathfinder Chairman Bernard Goonetilleke, while thanking all the experts who contributed to the report, highlighted that two countries – India and Japan as very close development partners of Sri Lanka, who have much to contribute to reviving Sri Lanka’s economy.

He added, “India’s interest in the welfare of the country and its people was evident in the granting of generous credit and other facilities amounting to almost 4.0 billion US dollars in the recent past to overcome the economic crisis. Likewise, Japan has been a country which had generously provided economic support going back many decades”.

Foreign Minister Sabry highlighted some important points for consideration. He urged all think tanks, such as Pathfinder Foundation, to look into areas a typical politician would not comprehend and push for necessary changes. He also reiterated that a politician should have the humility to listen and learn from experts on the subject, encouraging think tanks to engage with the public and share populist policies.

High Commissioner Bagley pointed out that Sri Lanka occupies a unique place in India’s foreign policy mainly due to India’s neighbourhood-first policy. He added that India stands ready to assist Sri Lanka in overcoming the current economic crisis. Ambassador Hideaki also expressed his sincere hope that this year will be the beginning of an economic revival providing a springboard for future development for Sri Lanka. He also mentioned that Japan had been a long-standing partner in Sri Lanka’s socioeconomic development.

Before the report’s launch, Dr. Dayaratna Silva, Executive Director of the Pathfinder Foundation, introduced the 120-page report explaining its main thrust and the rationale for sector selection as the key drivers for structural transformation of the economy. Sector experts made presentations at the technical sessions covering the role of the four sectors in transforming the economy, existing policy framework gaps, and key recommendations for triangular cooperation.

The topic of session one was Low–Carbon Power Generation, which discussed renewable energy, LNG and the utility of grid – connectivity between Sri Lanka and India. The lead speaker of the session, Eng. Gamini Senanayake provided important perspectives on the subject. The second session covered the Development of Trincomalee as an Energy Hub, presented by Mr. T.F. Nimal Perera and Prof. I. M Dharmadasa who joined the event via Zoom and contributed his ideas on the future of green energy and issues relating to the proposed nuclear power generation in Sri Lanka.

Technical sessions continued with Mr. Rohan Masakorala and Dr. Dimantha De Silva (via Zoom) explaining their recommendation on the Logistics and Connectivity sector, which included ports, railways, airports, and ferry transportation. The final session included valuable insights on Education by Prof. Siri Hettige, followed by recommendations for the Tourism sector by industry experts Dr. Vipula Wanigasekara and Dr. Malraj Kiriella. The technical sessions concluded with Eng. Sena Peiris and Mr. Nihal Cooray, speaking on an important topic of “Training and skills development”.



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Power sector overhaul targets losses, debt and tariffs

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Independent trade unions cry foul

The government has launched a far-reaching overhaul of the electricity industry, breaking up the Ceylon Electricity Board (CEB) into six fully state-owned companies, claiming to rein in chronic losses and mounting debt.

Under the Preliminary Transfer Plan, the newly incorporated entities, namely, Electricity Generation Lanka (Pvt) Ltd (EGL), National Transmission Network Service Provider (Pvt) Ltd (NTNSP), National System Operator (Pvt) Ltd (NSO), Electricity Distribution Lanka (Pvt) Ltd (EDL), CEB Employees Funds (Pvt) Ltd (CEBEF) and Energy Ventures Lanka (Pvt) Ltd (EVL), will take over the assets, liabilities and operations of the CEB from the appointed date.

Independent trade unions have opposed the restructuring programme.

At the core of the new model is the creation of an independent National System Operator, which will handle power system planning and competitively procure electricity from Electricity Generation Lanka, Independent Power Producers and non-conventional renewable energy developers. Power will be wheeled through the national grid operated by the NTNSP and sold to distribution companies.

Explaining the economic rationale, Eng. Pubudu Niroshan Hedigallage said the separation of functions was critical to restoring cost discipline in the sector.

“Electricity planning and procurement will now be carried out independently, based on least-cost principles. That is essential if we are to control generation costs and ease the upward pressure on tariffs,” he said.

Electricity Generation Lanka, though a successor to the CEB, will compete with private and renewable energy producers for projects, a move expected to curb inefficiencies and end guaranteed returns enjoyed under earlier arrangements.

“There will be no automatic allocation of projects. EGL must compete in the market like any other generator,” Eng. Hedigallage said.

According to officials, the Preliminary Transfer Plan provides for one generation and one distribution company initially, with further unbundling planned under the Final Transfer Plan to introduce sharper financial accountability at operational level.

Economists note that the restructuring is closely watched by multilateral lenders and investors, who have repeatedly flagged the power sector as a major fiscal risk.

The government has insisted that the reforms do not amount to privatisation, stressing that all six entities remain 100 percent state-owned. However, independent trade unions are of the view that what the government has undertaken is divestiture in all but name.

By Ifham Nizam

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India, Sri Lanka speakers discuss technology-driven parliamentary innovation, including AI-enabled systems

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Indian and Sri Lankan delegations meet in New Delhi (pic courtesy IHC)

Speaker of Lok Sabha Om Birla and Sri Lankan Speaker (Dr.) Jagath Wickramaratne recently discussed the possibility of expanding parliamentary cooperation through regular exchanges, formation of friendship groups, collaboration in policy and programme design and deeper engagement in technology-driven parliamentary innovation, including AI-enabled systems, real-time multilingual translation, and capacity building through Parliamentary Research and Training Institute for Democracies (PRIDE).

The discussion took place on the sidelines of the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi recently.

The following is the text of the statement issued by the Indian High Commission in Colombo: ” Speaker of the Parliament of Sri Lanka (Dr.) Jagath Wickramaratne concluded his visit to India from 14-18 January 2026, for participation in the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi. This was his first visit to India after assuming office. He was accompanied by Secretary-General of Parliament Kushani Rohanadeera and Assistant Director, (Administration) of the Parliament of Sri Lanka Kanchana Ruchitha Herath. Following the 28th CSPOC from 14-16 January 2026, Speaker and his delegation visited Jaipur, Rajasthan as a part of a two-day tour for CSPOC delegates from 17-18 January 2026.

The 28th CSPOC was inaugurated by Prime Minister of India Narendra Modi on 15 January 2026 at the Central Hall of Samvidhan Sadan, Parliament House Complex, New Delhi. Welcoming parliamentary leaders from across the Commonwealth, Prime Minister Modi highlighted the success of Indian democracy in providing stability, speed, and scale. He shared India’s efforts at giving voice to the Global South and forging new paths of cooperation to co-develop innovation ecosystems. He underlined the use of Artificial Intelligence by the Parliament of India to attract youth to understand Parliament. Prime Minister expressed his confidence in the CSPOC platform for exploring ways to promote knowledge and understanding of parliamentary democracy.

The conference, chaired by Lok Sabha Speaker Om Birla, convened 44 Speakers and 15 Deputy Speakers from 41 Commonwealth countries, along with representatives of four semi-autonomous Parliaments. The theme of the conference was “Effective Delivery of Parliamentary Democracy.” During the conference, participants addressed the role of Speakers in reinforcing democratic institutions, the integration of artificial intelligence in Parliamentary functions, the influence of social media on Members, approaches to enhance public engagement with Parliament, and measures to ensure the security, health, and wellbeing of Members and Parliamentary staff.

The visit marked a significant milestone in the evolving parliamentary partnership between India and Sri Lanka. Last year, two Parliamentary Delegations visited India for Orientation Programmes in May 2025 and August 2025 respectively. These visits, in line with the intent of the India – Sri Lanka Joint Statement on ‘Fostering Partnerships for a Shared Future’, further reinforce the strong democratic ethos and enduring friendship shared between the two nations.”

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Pakistan HC celebrates academic achievements of Lankan graduates

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A section of the participants at the Pakistan HC event

The High Commissioner of Pakistan in Sri Lanka hosted a special reception on Friday (16) for Sri Lankan alumni who have recently returned from their studies in Pakistan. The event, held at the Pakistan High Commission, celebrated the academic achievements of the graduates and reinforced the deep-rooted educational ties between the two nations.

The Allama Iqbal Scholarship Programme, a flagship initiative launched in 2019, has become a vital pillar of bilateral cooperation. The High Commissioner highlighted that Pakistan offers 1,000 fully funded scholarships at graduate, postgraduate, and PhD levels, with over 500 Sri Lankan students currently pursuing their education in Pakistan’s premier universities.

“Sri Lanka and Pakistan share an enduring friendship rooted in a shared history of mutual respect and culture,” the High Commissioner remarked during the address. “Education is the key to unlocking the success of your brilliant futures and creating bonds that extend well beyond the classroom”.

Addressing the alumni as “custodians” of a noble cause, the High Commissioner urged the alumni to act as brand ambassadors by sharing their knowledge to guide deserving students toward academic opportunities in Pakistan.

He emphasised their responsibility to mentor young minds, ensuring no capable student misses the chance for a promising future. Furthermore, the alumni were encouraged to take an active role in organising frequent educational and cultural engagements to inspire and enlighten others while strengthening the ties between the two nations.

The High Commissioner emphasized that each graduate serves as a “bridge” between the two countries, playing a meaningful role in uplifting Sri Lanka while further strengthening Pakistan–Sri Lanka relations. The alumni were invited to remain closely connected with the High Commission to facilitate future initiatives that strengthen people-to-people ties.

The evening concluded with a traditional Pakistani dinner, where the alumni shared stories of their academic growth and cultural experiences in Pakistan in a spirit of friendship and togetherness.

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