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Robust structural reforms and macroeconomic stability seen as vital to ensuring FDI inflows

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Heshana Kuruppu

By Ifham Nizam

The National People’s Power (NPP) government to enhance Foreign Direct Investment inflows, must continue to implement robust structural reforms, maintain macroeconomic stability and address vulnerabilities in the financial sector, senior Chartered Accountant Heshana Kuruppu said.

Kuruppu, who is the President of CA Sri Lanka and President of the South Asian Federation of Accountants, speaking to The Island Financial Review stressed that consistent and transparent policies, along with efforts to improve infrastructure and reduce bureaucratic hurdles, will be essential in rebuilding investor confidence and fostering a conducive environment for long-term investments.

Extracts from the interview;

Q: How do you perceive the new government’s economic initiatives in terms of their potential impact on local businesses?

A: NPP’s current proposal is for an interim government until parliamentary elections occur. Thus, it’s uncertain if they will implement major initiatives outlined in their policy framework. A new budget must be presented to parliament for any significant changes, which won’t happen with the existing parliament. Consequently, it’s too soon to assess the impact on local business.

Q: Which sectors do you think will benefit the most from these initiatives, and which ones might face challenges?

A: As highlighted above, it is too early to comment on the sectors going to have an effect. However as per the policy statement NPP has identified several priority sectors, such as, ICT, Fisheries, Construction, Agriculture, Tourism, Creative sectors (Art, Cinema, Music) etc.

Q: How prepared are businesses in Sri Lanka to adapt to these new policies?

A: Sri Lankan businesses seek consistent policies, whether fiscal, investment or labor-related. Despite past inconsistencies, the private sector has significantly contributed to economic growth. Consistency could have unlocked greater potential. Political parties need to support this now and the NPP appears to share this view, having promised private sector-friendly policies.

Q: How will these initiatives influence tax policies and what are your expectations regarding changes in corporate taxes?

A: Following the crisis, low and middle-income earners faced significant challenges. Their disposable income decreased due to taxes and the cost of living rose markedly. Despite low inflation, high living costs persist since incomes haven’t adjusted accordingly. The election results clearly show their dissatisfaction.

The incoming President and new administration will face the challenge of addressing these needs. To satisfy this segment, taxes need to be reduced, safety nets increased, or both. However, these actions should not strain the government budget as borrowing is not an option.

Conversely, achieving a sustainable solution in the mid to long term relies on real GDP growth. However, this requires a boost in capital expenditure. Yet, raising capital expenditure might result in a budget deficit.

Therefore, a careful strategy is needed to manage these conflicting demands. I don’t anticipate significant changes in corporate taxes in the near future.

Q: What is your opinion on the new President’s focus on the promotion of entrepreneurship and innovation in the business sector?

A: Key initiatives of the entrepreneurship policy include creating strategic think tanks, introducing tailored taxation frameworks and enhancing investment protection legislation. The policy emphasizes supporting micro, small, and medium-sized enterprises (MSMEs) through specialized divisions, collateral-free loans and cooperative business models.

Additionally, it focuses on optimizing industrial zones, adopting sustainable practices and leveraging digital technology to drive innovation and market efficiency. The overarching goal is to create a conducive environment for entrepreneurship, ensuring affordable infrastructure and transparent market operations.

These are all good initiatives. Historically, many promising proposals appear in election policy statements and sometimes in budget plans, but very few are actually implemented. Let’s hope this time is different.

Q: Do you think the new policies are sufficient to attract foreign direct investment (FDI)? Why or why not?

A: Regardless of whether policies are new or existing, their consistency is what truly matters.

Maintaining consistent policies is vital for drawing and keeping FDI. Predictable regulations, lower risks tied to sudden changes, aiding long-term investment planning are important. Conversely, inconsistent policies can deter investors by creating uncertainty and unexpected costs. Frequent alterations in tax laws, labor rules or trade policies can lead to an unstable business climate, deterring foreign investors.

In addition, economic and political stability is crucial for attracting Foreign Direct Investment (FDI), as it provides a predictable environment for investors. Sri Lanka’s recent economic challenges, including high inflation, currency depreciation and a significant debt burden, have created a complex landscape for potential investors. However, the country is showing signs of stabilization, with moderate growth projected at 2%-3% in 2024.



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GS1 Lanka drives Sri Lanka’s shift to 2D barcodes

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GS1 Lanka marked its 10th Annual General Meeting with a focus on the next stage of product identification in Sri Lanka, as businesses prepare for the wider adoption of 2D barcodes and the growing demand for trusted product information.

Addressing the AGM, GS1 Lanka president Revan Fernando noted that GS1 has been giving Sri Lankan products a globally recognised identity for more than 30 years. He pointed to the shift from traditional barcodes to 2D barcodes as the next major step, particularly as consumers increasingly look beyond a product’s identity to information they can trust about its origin, ingredients, authenticity and use.

GS1 Sunrise 2027 is a global industry initiative aiming to transition retail checkout systems to read 2D barcodes such as QR codes and Data Matrix codes alongside traditional 1D UPC stripes by the end of 2027

Under its Sunrise 2027 initiative, GS1 Lanka is working with the retail and healthcare sectors to prepare businesses for the transition to 2D barcodes. Unlike a conventional barcode used at checkout, a GS1 QR code can also connect consumers to a wider range of product information and support traceability and product verification through GS1 standards.

Fernando also called on brands to get involved in the transition, noting that the change will require businesses to rethink how they use the limited space on product packaging and how they communicate with consumers. GS1 Lanka will also introduce a new retail information platform to help member brands provide richer product information and improve the presentation of their products to consumers.

GS1 Lanka CEO Alikie Perera said the organisation’s work is increasingly focused on helping Sri Lankan businesses keep pace with changes in global supply chains and consumer expectations. The next phase will place greater emphasis on 2D barcodes, GS1 Digital Link, traceability and digital product information, as businesses prepare for a more connected and information-rich marketplace.

At the local level, GS1 Lanka continued its awareness programmes for entrepreneurs, SMEs, manufacturers and exporters, covering product identification, barcode standards, traceability, supply chain efficiency and market access. The organisation has also seen growing adoption of GS1 Activate and Verified by GS1, with more than 5,500 member companies registered on the platforms and over 20,000 product records uploaded.

The AGM concluded with a recognition of the contribution of GS1 Lanka’s members, partners, Board and team, while setting the direction for the organisation’s continued work to bring global standards and new product identification technologies into wider use among Sri Lankan businesses.

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Sri Lanka must rethink plastics before waste crisis deepens, says OUSL Vice Chancellor

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Dignitaries at 3rd ICPIES

By Ifham Nizam

Sri Lanka’s plastic problem can no longer be treated simply as a waste-disposal issue, with the country facing mounting pressure on its coastal environment, fisheries, communities and public health, Vice Chancellor of The Open University of Sri Lanka Senior Professor P. M. C. Thilakerathne said.

The country must move beyond collecting and disposing of plastic waste and fundamentally rethink how plastics are designed, produced, consumed and recovered, Prof. Thilakerathne said, calling for a national shift towards a circular economy.

Addressing the 3rd International Conference on Plastics, Innovations and Environmental Sustainability, he said Sri Lanka’s experience, particularly the environmental fallout from the 2021 X-Press Pearl disaster, demonstrated why plastic pollution required urgent national attention.

The X-Press Pearl disaster resulted in large quantities of plastic pellets being released into Sri Lanka’s coastal waters, with impacts extending to marine biodiversity, fisheries and coastal livelihoods.

For an island nation whose economy and communities are closely connected to the sea, he said, plastic pollution could not be viewed as an environmental issue separate from national development.

” For Sri Lanka, these figures are not abstract,” Prof. Thilakerathne said, pointing to the global growth in plastic production and waste.

The world produces hundreds of millions of tonnes of plastics annually, while only a small proportion of plastic waste is recycled. A substantial amount ends up in landfills or is leaked, dumped or otherwise mismanaged.

The scale of the global problem has direct relevance to Sri Lanka, he said, because waste that is inadequately collected or managed can ultimately find its way into waterways and the ocean.

The Vice Chancellor said Sri Lanka therefore needed to strengthen not only waste collection and recycling but also the systems that determine what products enter the waste stream in the first place.

“Much of the waste problem is decided at the drawing board,” he said.

Products should be designed for reuse, recycling and disassembly, while businesses should be encouraged to adopt models based on refill, repair and reuse rather than continued dependence on single-use plastics.

He said Sri Lanka also had an opportunity to develop locally appropriate alternatives using renewable resources and agricultural residues.

The country’s coconut industry and other agricultural resources could support research into alternative materials, he said, but scientists must ensure that such substitutes were genuinely environmentally sustainable and did not simply shift the environmental burden elsewhere.

For Sri Lanka, the challenge is particularly important because plastic pollution intersects with several economic sectors.

Fishing communities depend directly on healthy marine ecosystems, while tourism depends heavily on the country’s beaches, coastal areas and natural environment.

Plastic pollution can therefore translate into economic and livelihood pressures in addition to its ecological consequences, Prof. Thilakerathne said.

He also warned that the problem extended beyond visible plastic waste.

Microplastics and nanoplastics have been detected in drinking water, food and air, while research into their potential effects on human health is continuing.

The longer-term public-health implications represented an important area for scientific research, he said.

Prof. Thilakerathne called for stronger cooperation between universities, government institutions, industry and local communities to develop solutions suited to Sri Lanka rather than relying solely on technologies or approaches developed elsewhere.

Universities, he said, had a responsibility to generate the evidence needed for national policy and to ensure that research reached the communities and industries expected to implement it.

This is where OUSL could make a particular contribution, given its nationwide network and large population of students, including working adults, teachers, professionals and learners from rural communities.

The university plans to strengthen environmental sustainability and circular-economy principles across its curriculum, expand professional education on waste management and sustainable materials, develop international research partnerships and improve sustainable practices within its own campuses and centres, he said.

Prof. Thilakerathne also called attention to the thousands of people who earn a living through informal waste collection and recycling.

Any national strategy, he said, must recognise the contribution of these workers and ensure that the transition towards a circular economy does not leave them economically vulnerable.

Sri Lanka has already introduced restrictions on a number of single-use plastic products, but the Vice Chancellor said regulations must be accompanied by enforcement, investment in recovery infrastructure, industry participation and changes in consumer behaviour.

At the international level, he said, Sri Lanka also needed to contribute actively to efforts to address plastic pollution, backed by credible national scientific research.

The global nature of the plastics trade and pollution meant that action by individual countries alone would not be sufficient.

The conference therefore provided an opportunity for Sri Lankan researchers to connect local environmental challenges with international research and technological developments, he said.

Addressing young researchers and students, Prof. Thilakerathne urged them to measure the value of their work not only by academic publications but also by its ability to produce practical change.

He encouraged researchers to work across disciplines, engage with policymakers and industry, and remain connected to communities affected by the problems they study.

“The most meaningful research is that which changes practice,” he said.

He said Sri Lanka’s plastic crisis ultimately required a change in the country’s approach to materials, consumption and waste.

“Our task is not to abandon the material that shaped the modern world but to make it compatible with the sustainable one,” Prof. Thilakerathne said.

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The internationally acclaimed play ‘Every Brilliant Thing’ comes to Sri Lanka

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Theruni Indrapala

Prepare for a theatrical experience that brings people together and celebrates life. The Peterite Arts Foundation, in proud association with World Vision Lanka, announces the showing of an amateur production arranged with Casarotto Ramsay & Associates Ltd. Every Brilliant Thing, the acclaimed solo play by Duncan Macmillan and Jonny Donahoe. Directed by Theruni Indrapala, the play’s lead is played by former Peterite Mario de Soyza. This uplifting, interactive production will run at Kamatha Studio, BMICH, Colombo, from 05 to 08 November 2026.

Every Brilliant Thing tells a deeply moving yet joyful story. At seven, the narrator begins listing everything worth living for, from ‘ice cream’ and ‘things with stripes’ to ‘rollercoasters’, hoping to help his mother through depression. Over time, the list grows to more than a million entries and becomes a lifelong source of comfort for the narrator.

What began as a short monologue in 2006 has grown into a global phenomenon, performed in more than 80 countries across five continents. Its hopeful message has reached audiences in extraordinary settings, including aboard the USS George H.W. Bush aircraft carrier. The play has also been translated into 44 languages, including Arabic and Greek, with a special Chinese adaptation titled Every Brilliant Little Thing.

The play’s need for emotional intelligence, openness and a strong connection with the audience attracted a distinguished line-up of performers. Following a successful West End run featuring Sue Perkins and Minnie Driver, the play made its Broadway debut at the Hudson Theatre, where it ran from 21 February to 9 August 2026. Tony Award winner Daniel Radcliffe opened the Broadway production, receiving critical acclaim and a Tony nomination for Best Lead Actor in a Play. Law & Order: SVU icon Mariska Hargitay then made her official Broadway debut in the role, followed by Golden Globe winner Tracee Ellis Ross, who closed the run.

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