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Revitalization of industrial development in Sri Lanka

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Dr. René van Berkel outlines the UNIDO Country Programme for Sri Lanka (2021-25)

The United Nations Industrial Development Organization (UNIDO) recently commenced its 18M Euro Country Program for Sri Lanka, under the auspices of the Minister of Industries Hon. Wimal Weerawansa. At the signing ceremony Weerawansa expressed his appreciation to UNIDO for extending support to the Sri Lankan industries under UNIDO’s mission of promoting and accelerating inclusive and sustainable industrial development. The Secretary to the Ministry of Industries, Gen. Daya Ratnayake, signed the new Country Program on behalf of the Ministry, while Dr. Rene van Berkel, UNIDO Representative for Sri Lanka signed for UNIDO. Nawaz Rajabdeen, National Director of UNIDO’s Focal Point Office was also present at the occasion.

The ceremony was followed by the inaugural meeting of the Sri Lanka Joint Steering Committee for UNIDO’s country programme chaired by the Gen. Ratnayake and attended by representatives of relevant government and private sector stakeholder institutions. At the commencement Dr. van Berkel shared some highlights on Sri Lanka’s manufacturing sector review by UNIDO. While Sri Lanka has moved upward on the development ladder and is currently approaching upper middle-income graduation (99.1% of threshold), Manufacturing Value Added (MVA) in 2020 was 16%, whereas for example Indonesia achieves 20% and Thailand 26% therefore indicating a wide gap. Statistics also show limited diversification particularly in terms of exports and employment. The Medium and high-tech (MHT) is at a relatively low level in Sri Lanka at 7-8%, while it is up to 40% in other middle-income countries in South East Asia. However, these could also be seen as opportunities, pointed out Dr. van Berkel, who went on to share insights into the Country Program.

Sri Lanka is at 77th out of 131 indexed countries in UNIDO’s index for Sustainable Development Goal 9 on inclusive and sustainable industrialization. There is potential economic vulnerability arising out of early de-industrialization and limited diversification. Manufacturing growth in the country is seen hindered by lack of entrepreneurship, innovations, technology and management skills; low investor confidence; shortage of productive/skilled labour; limited diversification; and quality/trade access. This is a concern, as there is international consensus that the level of income must increase beyond a certain value before manufacturing can be decreased. This can be considered an economic vulnerability in terms of Sri Lanka.

Past UNIDO Assistance

In the recent past, UNIDO has worked mostly on the environmental domain and focused on hazardous chemicals. The focus later shifted to the quality infrastructure in Sri Lanka by improving and upgrading the operating procedures of different quality institutions, and how businesses need to be run with additional training and the building of competencies to improve national quality infrastructure (NQI).

UNIDO has also provided expertise to MSMEs in the food and spices sector, to improve their manufacturing practices, food quality, and food safety – which were highlighted as key areas of concern. An example would be the certification procedure for ‘Pure Ceylon Cinnamon’ for additional brand value. This certification is currently at the final stages of approval in the EU.

Another UNIDO project focused on bamboo, which is a natural solution against waterlogging. Bamboo is also a biomaterial that can be used for energy, and as an alternative to wood for handicrafts, furniture and household utensils. UNIDO assisted the bamboo sector in Sri Lanka by promoting better seedlings and carried out some work on setting up bamboo plantations and of a training and demonstration centre at the Industrial Development Board. Bamboo was seen to be particularly beneficial as an inter-crop in tea estates with many benefits including shade and improved agronomy of the plantations.

The upcoming UNIDO Country Program in Sri Lanka (2021-2025)

Objective of the UNIDO Country Programme is to provide a programming framework for identification, development and execution of catalytical technical cooperation services in the country. It is expected to achieve and sustain critical impact at scale through: Government co-ownership and inter-ministerial coordination; Focus on prioritized industrial sectors or areas matching country needs and UNIDO comparative advantages; Inclusion of policy advisory services; and Engagement and synergies with partner interventions to upscale results. It was noted that projects under the program depend on partners and the funds available.

The major thrust areas of the program include Industrial Development Policy, Value addition to produce and Solutions for climate resources.

1. Industrial Development Policy

For the industrial sector to grow, there must first be a consensus among the policymakers and key stakeholders on the priority actions. This emphasizes the need for industrial policymaking – which is a process, with specific instruments, building capabilities of institutions, delivery, monitoring, and evaluation, supported by industrial statistics and information that can made available. A public-private partnership would be essential, where the Government, chambers, and industry associations work together closely.

Under the policy, driving manufacturing excellence and entrepreneurship needs to be a top priority, where businesses are encouraged to be adopt modern management practices and capture business opportunities.

2. Value addition to produce

Sri Lanka is endowed with many natural resources ranging from fisheries, rubber, coconut, tea, etc., but the amount of value that is being generated is comparatively low, for both the domestic and international markets. Lack of sufficient advanced processing is seen as one key reason. Entrepreneurs need to recognize that there is an opportunity to make more money out of what is already available – by improving food safety, targeting the higher markets, and advanced processing – not forgetting the processing and quality infrastructure which also needs to be developed.

3. Solutions for climate and resources

This area basically deals with minimizing environmental impacts. Industries are the polluting agents and contribute to the climate problem, but they’re also an integral part of the climate solution. Eventually, businesses would need to come up with energy-efficient products. There is also a call to shift to source energy from renewable sources such as hydropower, wind, solar, bioenergy etc. The ultimate transition would be towards a Circular Economy -– changing the fundamental approach of taking things out of the environment, making things, using them, then throwing them away – which is a linear cycle. Instead, the Circular Economy defines the cycle as: take – make – use – reuse – recycle. In a circular economy, the waste is in fact being designed out. Hence zero waste – and zero recycling. It makes excellent economic sense in manufacturing terms too.

Opportunities for Sri Lanka

The Covid pandemic has caused a massive impact on the global manufacturing sector, and Sri Lanka is no exception. Businesses would now need to spend more attention on health and safety now than ever before. Accordingly, workplace practices would need to change to accommodate new health guidelines, and work procedures too will have to be adjusted.

Accelerated as a result of the pandemic, digitalization has been seen vigorously taking place around the world. For instance, payment and marketing are already digitalized by industries across the board. But the Fourth Industrial Revolution (4IR) will create digitalization within the manufacturing process. It is envisaged that some activities would be taken over by robots, resulting in changes in jobs and skills requirements for us humans. If one does not respond to these changes – they would be left behind.

MSME energy efficiency is essential in certain sectors, such as the ceramics industry, which utilizes higher energy, amounting to over 50% of the total cost of the product. In such cases lowering the energy costs make huge economic sense. UNIDO has been involved in energy awareness raising for such industries. This means not just saving, where one feels good about it, but is actually saving energy and thereby contributing to the profit margin. Energy efficiency has huge economic benefits and therefor a sound economic perspective is essential when embracing the concept.

And as for alternate energy for MSMEs, UNIDO first recommends energy efficiency before moving onto alternate energy. Rationale is that it makes no sense to generate renewable energy if the business is not utilizing it efficiently in the first place. Hence, energy efficiency should fundamentally come first.

While investing in Renewable Energy (RE) is the way forward, the policy regime will have a direct bearing on investment decision. Another argument is that RE can be expensive, but there are ways of combining different technologies depending on finance agreements. For example, if the purchase agreements go for a long period, then RE service contracts can be included – if the scale justifies. Sri Lanka is a member of the International Solar Alliance. As such, it would be a good opportunity for Sri Lanka to promote solar energy and best practices and create an investment climate for solar power, which can bring back big dividends if approached the right way. International investors could also be potentially interested in such RE projects.



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Ranking public services with AI — A roadmap to reviving institutions like SriLankan Airlines

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Efficacy measures an organisation’s capacity to achieve its mission and intended outcomes under planned or optimal conditions. It differs from efficiency, which focuses on achieving objectives with minimal resources, and effectiveness, which evaluates results in real-world conditions. Today, modern AI tools, using publicly available data, enable objective assessment of the efficacy of Sri Lanka’s government institutions.

Among key public bodies, the Supreme Court of Sri Lanka emerges as the most efficacious, outperforming the Department of Inland Revenue, Sri Lanka Customs, the Election Commission, and Parliament. In the financial and regulatory sector, the Central Bank of Sri Lanka (CBSL) ranks highest, ahead of the Securities and Exchange Commission, the Public Utilities Commission, the Telecommunications Regulatory Commission, the Insurance Regulatory Commission, and the Sri Lanka Standards Institution.

Among state-owned enterprises, the Sri Lanka Ports Authority (SLPA) leads in efficacy, followed by Bank of Ceylon and People’s Bank. Other institutions assessed included the State Pharmaceuticals Corporation, the National Water Supply and Drainage Board, the Ceylon Electricity Board, the Ceylon Petroleum Corporation, and the Sri Lanka Transport Board. At the lower end of the spectrum were Lanka Sathosa and Sri Lankan Airlines, highlighting a critical challenge for the national economy.

Sri Lankan Airlines, consistently ranked at the bottom, has long been a financial drain. Despite successive governments’ reform attempts, sustainable solutions remain elusive.

Globally, the most profitable airlines operate as highly integrated, technology-enabled ecosystems rather than as fragmented departments. Operations, finance, fleet management, route planning, engineering, marketing, and customer service are closely coordinated, sharing real-time data to maximise efficiency, safety, and profitability.

The challenge for Sri Lankan Airlines is structural. Its operations are fragmented, overly hierarchical, and poorly aligned. Simply replacing the CEO or senior leadership will not address these deep-seated weaknesses. What the airline needs is a cohesive, integrated organisational ecosystem that leverages technology for cross-functional planning and real-time decision-making.

The government must urgently consider restructuring Sri Lankan Airlines to encourage:

=Joint planning across operational divisions

=Data-driven, evidence-based decision-making

=Continuous cross-functional consultation

=Collaborative strategic decisions on route rationalisation, fleet renewal, partnerships, and cost management, rather than exclusive top-down mandates

Sustainable reform requires systemic change. Without modernised organisational structures, stronger accountability, and aligned incentives across divisions, financial recovery will remain out of reach. An integrated, performance-oriented model offers the most realistic path to operational efficiency and long-term viability.

Reforming loss-making institutions like Sri Lankan Airlines is not merely a matter of leadership change — it is a structural overhaul essential to ensuring these entities contribute productively to the national economy rather than remain perpetual burdens.

By Chula Goonasekera – Citizen Analyst

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Why Pi Day?

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International Day of Mathematics falls tomorrow

The approximate value of Pi (π) is 3.14 in mathematics. Therefore, the day 14 March is celebrated as the Pi Day. In 2019, UNESCO proclaimed 14 March as the International Day of Mathematics.

Ancient Babylonians and Egyptians figured out that the circumference of a circle is slightly more than three times its diameter. But they could not come up with an exact value for this ratio although they knew that it is a constant. This constant was later named as π which is a letter in the Greek alphabet.

Archimedes

It was the Greek mathematician Archimedes (250 BC) who was able to find an upper bound and a lower bound for this constant. He drew a circle of diameter one unit and drew hexagons inside and outside the circle such that the sides of each hexagon touch the sides of the circle. In mathematics the circle passing through all vertices of a polygon is called a ‘circumcircle’ and the largest circle that fits inside a polygon tangent to all its sides is called an ‘incircle’. The total length of the smaller hexagon then becomes the lower bound of π and the length of the hexagon outside the circle is the upper bound. He realised that by increasing the number of sides of the polygon can make the bounds get closer to the value of Pi and increased the number of sides to 12,24,48 and 60. He argued that by increasing the number of sides will ultimately result in obtaining the original circle, thereby laying the foundation for the theory of limits. He ended up with the lower bound as 22/7 and the upper bound 223/71. He could not continue his research as his hometown Syracuse was invaded by Romans and was killed by one of the soldiers. His last words were ‘do not disturb my circles’, perhaps a reference to his continuing efforts to find the value of π to a greater accuracy.

Archimedes can be considered as the father of geometry. His contributions revolutionised geometry and his methods anticipated integral calculus. He invented the pulley and the hydraulic screw for drawing water from a well. He also discovered the law of hydrostatics. He formulated the law of levers which states that a smaller weight placed farther from a pivot can balance a much heavier weight closer to it. He famously said “Give me a lever long enough and a place to stand and I will move the earth”.

Mathematicians have found many expressions for π as a sum of infinite series that converge to its value. One such famous series is the Leibniz Series found in 1674 by the German mathematician Gottfried Leibniz, which is given below.

π = 4 ( 1 – 1/3 + 1/5 – 1/7 + 1/9 – ………….)

The Indian mathematical genius Ramanujan came up with a magnificent formula in 1910. The short form of the formula is as follows.

π = 9801/(1103 √8)

For practical applications an approximation is sufficient. Even NASA uses only the approximation 3.141592653589793 for its interplanetary navigation calculations.

It is not just an interesting and curious number. It is used for calculations in navigation, encryption, space exploration, video game development and even in medicine. As π is fundamental to spherical geometry, it is at the heart of positioning systems in GPS navigations. It also contributes significantly to cybersecurity. As it is an irrational number it is an excellent foundation for generating randomness required in encryption and securing communications. In the medical field, it helps to calculate blood flow rates and pressure differentials. In diagnostic tools such as CT scans and MRI, pi is an important component in mathematical algorithms and signal processing techniques.

This elegant, never-ending number demonstrates how mathematics transforms into practical applications that shape our world. The possibilities of what it can do are infinite as the number itself. It has become a symbol of beauty and complexity in mathematics. “It matters little who first arrives at an idea, rather what is significant is how far that idea can go.” said Sophie Germain.

Mathematics fans are intrigued by this irrational number and attempt to calculate it as far as they can. In March 2022, Emma Haruka Iwao of Japan calculated it to 100 trillion decimal places in Google Cloud. It had taken 157 days. The Guinness World Record for reciting the number from memory is held by Rajveer Meena of India for 70000 decimal places over 10 hours.

Happy Pi Day!

The author is a senior examiner of the International Baccalaureate in the UK and an educational consultant at the Overseas School of Colombo.

by R N A de Silva

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Sheer rise of Realpolitik making the world see the brink

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A combined US-Israel attack on Iran.(BBC)

The recent humanly costly torpedoing of an Iranian naval vessel in Sri Lanka’s Exclusive Economic Zone by a US submarine has raised a number of issues of great importance to international political discourse and law that call for elucidation. It is best that enlightened commentary is brought to bear in such discussions because at present misleading and uninformed speculation on questions arising from the incident are being aired by particularly jingoistic politicians of Sri Lanka’s South which could prove deleterious.

As matters stand, there seems to be no credible evidence that the Indian state was aware of the impending torpedoing of the Iranian vessel but these acerbic-tongued politicians of Sri Lanka’s South would have the local public believe that the tragedy was triggered with India’s connivance. Likewise, India is accused of ‘embroiling’ Sri Lanka in the incident on account of seemingly having prior knowledge of it and not warning Sri Lanka about the impending disaster.

It is plain that a process is once again afoot to raise anti-India hysteria in Sri Lanka. An obligation is cast on the Sri Lankan government to ensure that incendiary speculation of the above kind is defeated and India-Sri Lanka relations are prevented from being in any way harmed. Proactive measures are needed by the Sri Lankan government and well meaning quarters to ensure that public discourse in such matters have a factual and rational basis. ‘Knowledge gaps’ could prove hazardous.

Meanwhile, there could be no doubt that Sri Lanka’s sovereignty was violated by the US because the sinking of the Iranian vessel took place in Sri Lanka’s Exclusive Economic Zone. While there is no international decrying of the incident, and this is to be regretted, Sri Lanka’s helplessness and small player status would enable the US to ‘get away with it’.

Could anything be done by the international community to hold the US to account over the act of lawlessness in question? None is the answer at present. This is because in the current ‘Global Disorder’ major powers could commit the gravest international irregularities with impunity. As the threadbare cliché declares, ‘Might is Right’….. or so it seems.

Unfortunately, the UN could only merely verbally denounce any violations of International Law by the world’s foremost powers. It cannot use countervailing force against violators of the law, for example, on account of the divided nature of the UN Security Council, whose permanent members have shown incapability of seeing eye-to-eye on grave matters relating to International Law and order over the decades.

The foregoing considerations could force the conclusion on uncritical sections that Political Realism or Realpolitik has won out in the end. A basic premise of the school of thought known as Political Realism is that power or force wielded by states and international actors determine the shape, direction and substance of international relations. This school stands in marked contrast to political idealists who essentially proclaim that moral norms and values determine the nature of local and international politics.

While, British political scientist Thomas Hobbes, for instance, was a proponent of Political Realism, political idealism has its roots in the teachings of Socrates, Plato and latterly Friedrich Hegel of Germany, to name just few such notables.

On the face of it, therefore, there is no getting way from the conclusion that coercive force is the deciding factor in international politics. If this were not so, US President Donald Trump in collaboration with Israeli Rightist Premier Benjamin Natanyahu could not have wielded the ‘big stick’, so to speak, on Iran, killed its Supreme Head of State, terrorized the Iranian public and gone ‘scot-free’. That is, currently, the US’ impunity seems to be limitless.

Moreover, the evidence is that the Western bloc is reuniting in the face of Iran’s threats to stymie the flow of oil from West Asia to the rest of the world. The recent G7 summit witnessed a coming together of the foremost powers of the global North to ensure that the West does not suffer grave negative consequences from any future blocking of western oil supplies.

Meanwhile, Israel is having a ‘free run’ of the Middle East, so to speak, picking out perceived adversarial powers, such as Lebanon, and militarily neutralizing them; once again with impunity. On the other hand, Iran has been bringing under assault, with no questions asked, Gulf states that are seen as allying with the US and Israel. West Asia is facing a compounded crisis and International Law seems to be helplessly silent.

Wittingly or unwittingly, matters at the heart of International Law and peace are being obfuscated by some pro-Trump administration commentators meanwhile. For example, retired US Navy Captain Brent Sadler has cited Article 51 of the UN Charter, which provides for the right to self or collective self-defence of UN member states in the face of armed attacks, as justifying the US sinking of the Iranian vessel (See page 2 of The Island of March 10, 2026). But the Article makes it clear that such measures could be resorted to by UN members only ‘ if an armed attack occurs’ against them and under no other circumstances. But no such thing happened in the incident in question and the US acted under a sheer threat perception.

Clearly, the US has violated the Article through its action and has once again demonstrated its tendency to arbitrarily use military might. The general drift of Sadler’s thinking is that in the face of pressing national priorities, obligations of a state under International Law could be side-stepped. This is a sure recipe for international anarchy because in such a policy environment states could pursue their national interests, irrespective of their merits, disregarding in the process their obligations towards the international community.

Moreover, Article 51 repeatedly reiterates the authority of the UN Security Council and the obligation of those states that act in self-defence to report to the Council and be guided by it. Sadler, therefore, could be said to have cited the Article very selectively, whereas, right along member states’ commitments to the UNSC are stressed.

However, it is beyond doubt that international anarchy has strengthened its grip over the world. While the US set destabilizing precedents after the crumbling of the Cold War that paved the way for the current anarchic situation, Russia further aggravated these degenerative trends through its invasion of Ukraine. Stepping back from anarchy has thus emerged as the prime challenge for the world community.

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