Business
SL ranked second in South Asian region for ease of launching startup businesses
Sri Lanka is ranked second in the South Asian region for ease of launching a startup business, the 2021 edition of the Global Startup Ecosystem Report (GSER), launched by global innovation policy advisory and research firm Startup Genome states.
The report , which is a country validity study, features, among other matters, Sri Lanka’s startup ecosystem and the way forward for it, after working closely with the ICT Agency of Sri Lanka.
A press release states: The global innovation policy advisory & research firm Startup Genome launched the 2021 edition of the Global Startup Ecosystem report (GSER), in which Sri Lanka’s Startup Ecosystem was featured along with key insights and its way forward after working closely with the ICT Agency of Sri Lanka as a country validating study. Published annually, the report analyses 280 entrepreneurial innovation ecosystems and 3 million startups and includes the ranking of the leading 140 ecosystems in the world, breakdowns by continent with regional insights. The GSER is widely known as the most comprehensive and widely read research on global startups.
The Information and Technology Agency of Sri Lanka (ICTA) through a membership agreement with Startup Genome has been working together since 2016 to explore the untapped potential of the local startup ecosystem and find ways to develop it. Exploring the Sri Lankan startup ecosystem in 2021, the report underscores that the ecosystem is evolving rapidly with measures being taken to nurture local talent, improve business climate and foster international connections that bode well for the ecosystem in the long run.
The report highlights that Sri Lanka is ranked second in the region for ease of starting a startup business, given the recent developments and new laws designated for Colombo Port City as a Special Economic Zone and government’s nod to establish five new technology parks around the island and international collaborations for startup funding. The rapid growth of the ecosystem is backed by the government incentives and timely measures to strengthen the ecosystem.
The report sheds light on the strengths of sub sectors such as Cleantech and Agtech and New Food sectors being highlighted for their density of talent, support resources and startup activities as key drivers of economic growth. The fast-growing stock market, reduced corporate income tax and knowledge driven economy along with ranked as #3 in the Asian region for affordable talent and featured in the top 30 Asian Ecosystems in Bang for Buck are some of the cited reasons a startup should move to Sri Lanka.
Among the key findings of the report, the total value of the Sri Lankan startup ecosystem as at 2021 with a growth of 13% from last year, during the pandemic and creating USD 132 million, total early-stage funding – USD 26 million, Median Series A Round – USD 1.06 million, Median Seed Round – USD 50,000, and Software Engineer salary – USD 6,000.
“Sri Lanka is implementing a holistic and reliant approach to developing our startup ecosystem. Provision of infrastructure through state-of-the-art technology parks, startup-friendly laws and policies, creation of a venture fund, entrepreneur visa, facilitating regional startup hubs are a few of many initiatives that will be implemented in our start-up development strategy.’’ said Jayantha De Silva, Secretary, Ministry of Technology.
“As per the Global Startup Ecosystem report (GSER) findings, the overall growth and performance in Sri Lanka’s startup ecosystem has been impacted by the pandemic. However as the facilitator for technology startup development in Sri Lanka, ICTA will continue to work closely with Startup Genome alongside a strong collaboration between both local and global organisations to further empower and accelerate the start up ecosystem in the country. It is imperative that priority focus is provided for local startups where the performance of the startup eco system would be pivotal in realising the vision of a future digital economy in Sri Lanka as well as position Sri Lanka globally for world class technology products” said Oshada Senanayake, Chairman of ICTA.
For international businesses looking to enter the Sri Lankan shores, the country offers a 5 to 10-year tax holiday to private companies while maintaining a 0% corporate tax rate for the tech sector. There is zero capital gains and zero dividend withholding tax for foreigners. In addition, ICTA’s recent partnership with PwC Sri Lanka provisioned an alternative Credit Evaluation Framework specifically designed for tech companies to expand financing opportunities through local financial institutions. The continuous efforts towards a startup friendly government saw the Ministry of Finance in October 2020 introducing a procurement policy requires any application software bids for the government under a value of LKR 2 million to exclusively go to tech startups. In 2021 the Digital Nomad visa program was introduced, enabling foreign individuals to work remotely from Sri Lanka for 1 year.
ICTA is actively working with the Startup Genome, government bodies and partner organizations to achieve its vision of establishing 1,000 tech startups by 2024.
Business
Foreign Minister defends India pacts, sidesteps transparency demand
In a press conference marked by both clarity and pointed omission, Foreign Affairs and Tourism Minister Vijitha Herath, yesterday offered a robust defence of two controversial bilateral agreements with India but conspicuously avoided committing to tabling their full texts in Parliament.
The minister’s appearance, billed as a year-opening briefing, took a sharp turn when questioned on the strategic implications of the India-Sri Lanka Defence Cooperation Agreement and Sri Lanka’s acceptance of the Indian Pharmacopoeia.
“No Indian military camps on our soil”
Responding in Sinhala to a question posed in English, Minister Herath moved first to allay what he suggested were widespread misapprehensions about the defence pact.
“This agreement is especially for data and information exchange purposes regarding drug trafficking, drug mafias, human trafficking, and any terrorist activities that could threaten regional security and peace,” Herath stated.
He emphasised that it would also facilitate “various support related to the defence sector.”
In his most definitive assertion, aimed at quieting a persistent national anxiety, the Minister declared: “We must clearly say that there is no plan or possibility of setting up Indian defence camps on Sri Lankan soil.” He categorised the pact not as a “defence agreement” but a “defence cooperation agreement in its real sense,” claiming it creates an “advantageous position” for Sri Lanka.
He linked recent post-‘Ditwah’ cyclone disaster support from India, as well as U.S. aerial support during recovery efforts, to the frameworks established by such cooperation agreements, arguing they have proven beneficial.
Indian Pharmacopoeia: A reputation-based advantage
On the equally contentious acceptance of the Indian Pharmacopoeia – a standard synopsis for drug manufacturing – Minister Herath framed it as a logical step that formalises existing practice.
“We already import a significant share of medicines from India,” he noted. The agreement, he explained, signifies the acceptance of medicines exported by a “reputed Indian pharmaceutical company” approved by its national regulators.
He assured the public that Sri Lanka’s National Medicine Regulatory Authority (NMRA) will continue to remain the monitor. “By entering into this, no disadvantage will happen to us. Only an advantage will happen… it will only be beneficial to us,” he emphasised.
The unanswered question
Despite the detailed assurances, the Minister pointedly ignored the final and arguably most critical part of the question posed by The Island Financial Review : whether the government would table the full text of the two agreements in Parliament for transparent debate and discussion.
This omission is likely to fuel further controversy, as opposition parties, civil society groups, and independent analysts have repeatedly demanded full parliamentary scrutiny, arguing that agreements touching on sovereignty and public health mandate the highest level of public transparency.
Tourism Pride
Shifting to his tourism portfolio, Minister Herath struck an optimistic note, citing record tourist arrivals and foreign remittances in 2025 as a sign of resilient recovery post-Ditwah.
The conference also touched on global affairs. When asked about the U.S. arrest of Venezuelan President Nicolás Maduro, Herath presented a nuanced governmental position. He stated that while his party, the JVP, condemns the action, the government’s official stance is to urge respect for national sovereignty in line with the UN Charter – a reflection of the coalition’s delicate balancing act between ideological roots and diplomatic pragmatism once in governance.
Minister Herath’s explanations provide the government’s clearest public rationale yet for the India agreements, directly confronting fears over militarisation and pharmaceutical quality. However, the deliberate sidestepping of the transparency query left a communication deficit at the heart of the press conference.
High-stakes diplomacy
It reflected a perception that while the administration is willing to defend its policy outcomes, it remains reluctant to subject the processes of high-stakes diplomacy to the full glare of parliamentary and public scrutiny. As these agreements continue to shape Sri Lanka’s strategic and health landscape, the call for their full disclosure is now accompanied by a louder question about the government’s commitment to open governance.
by Sanath Nanayakkare
Business
‘Vehicle-Testing Can Save Lives’
Automobile Association of Ceylon (AAC), in collaboration with the Federation Internationale de L’ Automobile (FIA) and under the UN Decade of Action for Road Safety has been consistently engaging in road safety enhancement programs for all citizens of Sri Lanka.
Current data indicates that while over 08 million vehicles are registered in the country, only heavy vehicles (less than 20% of the vehicle population) are subjected to compulsory road-worthiness tests.
Fatal accidents due to technical failures in vehicles are on the rise and the damage to lives and property is severe.
We also understand that there is a death every three hours and eight deaths per day in road accidents. This amounts to nearly 3000 deaths in road accidents per year.
AA of Ceylon has launched the “Vehicle Testing can Save Lives” project with the advice and support given to execute our campaign by the Minister of Transport, chairman, National Council for Road Safety (NCRC), Deputy Inspector General of Police (Traffic Division), Dr. Indika Jagoda, Deputy Director (Accident Service), National Hospital, president, Lions Club of Boralasgamuwa, Metro(Lions Club International – District 306 D 2) and other stake-holders to find a workable, low / cost solution for mandatory vehicle testing in Sri Lanka.
Therefore, this project aims to educate the public on the necessity of checking essential safety features in all vehicles and the benefits of same to all road users.
AAC has therefore respectfully requested Anura Kumara Dissanayake, President of the Democratic Socialist Republic of Sri Lanka, to consider implementing the proposal we have submitted to him, to minimize fatal accidents, injuries to people and damage to vehicles and property due to road accidents and to also implement a rule to have compulsorily road-worthiness checking of all vehicles. (AAC)
Business
INSEE Lanka appoints new Chief Executive Officer
Siam City Cement (Lanka) Limited (INSEE Lanka) has announced the appointment of Eng. Thusith C. Gunawarnasuriya as its new Chief Executive Officer, effective 01 January 2026. He succeeds Nandana Ekanayake, who will continue to serve as Chairman, ensuring leadership continuity and strategic stability for the organisation.
A long-standing contributor to INSEE’s journey, Thusith has worked with the company through its evolution under Holcim (Lanka) Ltd, LafargeHolcim and INSEE, playing pivotal roles that influenced both operational progress and strategic direction.
Rejoining INSEE Lanka in January 2025 as Chief Operating Officer, he has since demonstrated exceptional leadership, driving topline growth, improving EBITDA performance, and strengthening talent development initiatives that enhanced organisational capability and business outcomes.
His expertise in business strategy, operations excellence, and supply chain transformation is well-recognised, supported by over 25 years of multi-industry and multi-country leadership experience. His career includes senior positions at Lion Brewery (Ceylon) PLC, Hemas Manufacturing, Fonterra Brands Lanka, GlaxoSmithKline, MAS Active, and DMS Software Engineering. His international exposure spans India, Bangladesh, and Thailand.
Thusith is a proud alumnus of Dharmaraja College, Kandy, and holds a BSc (Hons) in Electrical & Electronic Engineering from the University of Peradeniya, an MBA from the University of Colombo, and an MSc in Business & Organizational Psychology from Coventry University, UK. He has completed executive leadership programs at IMD (Switzerland) and the National University of Singapore. He is also a member of IEEE (US), CILT (UK), ISMM (Sri Lanka), and IESL (Sri Lanka).
Chairman’s Quote – Nandana Ekanayake:
“Thusith’s deep understanding of our business, strong operational mindset, and proven leadership make him the ideal successor to lead INSEE Lanka into the next phase of growth. His experience within INSEE and across multiple industries, positions him well to deliver on our long-term ambitions and uphold the values that define the organisation.”
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