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
SriLankan Airlines Alerts Customers to Social Media Scams
18 March 2026; Colombo – SriLankan Airlines wishes to alert customers to social media scams circulating on Facebook, WhatsApp and other platforms, often sent from both known and unknown contacts, featuring fake offers that misuse the SriLankan Airlines name, logo and brand.
SriLankan Airlines will never request payments, OTPs, credit card details, bank information or any other financial details via social media channels.
Customers are advised to always verify that any promotional offer is linked to the airline’s official website, www.srilankan.com, or shared through the verified social media accounts of SriLankan Airlines, as scammers often use fake links with unusual characters or spellings, or impersonate the airline through fake social media accounts.
Business
JSL & Fentons Joint Venture to Construct Double Circuit Transmission Line from Mannar Grid Substation to Mullikulam Collection Grid Substation
Approval has been granted at the Cabinet meeting held on 03-02-2025 to implement the formal procurement procedure to select a contractor for the construction of a 28 km long double circuit transmission line with the capacity of 220 kW, from Mannar Grid Substation to Mullikulam Collection Grid Substation under the Lot B of the Mullikulam Wind Power Transmission Project.
Bids have been invited following the International Competitive Procurement Procedure and five (5) bids have been received.
Accordingly, based on the recommendations submitted by the High-Level Standing Procurement Committee after evaluating the aforementioned bids, the Cabinet of Ministers has approved the resolution furnished by the Minister of Power and Energy to award the contract to the JSL & Fentons Joint Venture – Intend (Jyoti Structure Limited, India and Hayleys Fentons
Limited, Sri Lanka), substantially responsive minimum bidder, for an equal amount of Sri Lankan Rs. 2,269.18 million (without VAT).
Business
Fuel crunch forces midweek shutdown; courts told to show leniency
Economic pressure likely to push already-strained businesses into a liquidity crunch
By Sanath Nanayakkare
Sri Lanka is slowing to a midweek halt as a deepening fuel shortage has compelled the government to suspend most public sector operations every Wednesday, while courts have been advised to take a lenient view of attendance requirements amid transportation difficulties caused by fuel rationing.
The directive, issued by the Commissioner General of Essential Services, suspends most state functions one day a week until further notice in an attempt to conserve scarce fuel reserves. Authorities have also urged the private sector to adopt a similar arrangement.
Officials say the measure is aimed at reducing commuter traffic into major cities, particularly Colombo, where thousands of public servants travel daily from suburban areas.
Explaining the decision to select Wednesday, officials said declaring Friday a holiday could have effectively denied the public access to government services for three consecutive days when combined with the weekend.
However, the development underscores the fragility of Sri Lanka’s economic recovery as households continue to grapple with rising prices of essential goods.
The impact is already visible on the streets. Long queues have formed outside fuel stations while public buses have been seen overcrowded, with passengers clinging to footboards. Many commuters were also seen attempting to secure rides through the ride-hailing platforms Uber and PickMe, where drivers were demanding higher fares as demand surged.
Recognising these difficulties, the Judicial Service Commission (JSC) has issued a circular instructing judges to take transportation constraints caused by fuel rationing into consideration when making legal determinations.
Judges have been advised to consider the possibility that lawyers, litigants, witnesses and even suspects may be unable to attend court due to limited fuel availability.
While court proceedings are expected to continue, judicial officers have been asked to assess such situations on a case-by-case basis.
The JSC has also directed courts to make greater use of virtual platforms whenever possible. This is expected to apply particularly to proceedings such as extending remand orders, thereby avoiding the need to transport prisoners physically to court.
Authorities believe that conducting such hearings online could significantly reduce fuel consumption associated with prison transport. The temporary measures will remain in effect until further notice.
Meanwhile, officials say special fuel allocations may be considered for critical sectors including tourism, the Colombo Port, agriculture, health services, the plantation industry and public transportation in order to sustain essential services and economic activity.
However, the broader economic outlook remains uncertain. Business leaders warn that companies already burdened with higher taxes, rising operational costs and thin margins could face severe liquidity pressures if global oil prices remain elevated.
Industry observers say some firms may be compelled to seek loan moratoria if the disruption linked to the conflict involving Iran continues for another month.
Public concern has also been heightened by recent comments from Iranian officials indicating that Tehran has not sought a ceasefire in the ongoing conflict.
For President Anura Kumara Dissanayake, the unfolding fuel shortage is emerging as one of the most serious challenges facing his administration. Although the government has been holding internal consultations, critics say an all-party conference has yet to be convened to formulate a unified national response to the crisis.
Within business circles and sections of the public, questions are increasingly being raised about whether the government possesses the institutional capacity and experience required to manage a prolonged energy shock.
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