Business
‘SL yet to come out of crisis; increasing dollar revenue should be a priority’
By Hiran H.Senewiratne
The Sri Lankan economy is now showing some stability after 2022 but it is yet to come out of that crisis. This could be done by increasing dollar revenue and by targeting four major sectors, a top economist attached to an independent policy think tank said.
‘Stability is not a good place to stay in for long for any country but it is time to move out and increase the country’s revenue by curtailing borrowings, Chief Executive Officer, Advocata Institute, Dhananath Fernando said.
Addressing Rotary Club Colombo South members at a recent function held at NH Collection, Colombo, Fernando said; ‘Since we are yet come out of this crisis, the country’s economic growth and stability should come from four main channels/sectors, namely, exports, foreign remittances, tourism and Foreign Direct Investment (FDI).
Fernando added, ‘Over the last two years the government raised US $ 1.6 billion in loans for various purposes and debt servicing; interest and loan repayments will be started from September to settle the loans in two- and- a- half years.
‘We are enjoying a debt moratorium from bondholders/creditors, until 2028 and during that grace period we have to develop those four sectors in order to come out of the economic crisis soon. If not the country will encounter another deep economic crisis.
‘Export diversification will assist to increase the dollar revenue of the economy. At present, it’s around US $ 10 billion, which needs to be increased beyond that amount. This is a critical area that the government should focus on.
‘Promoting of foreign direct investment into the country has a lot of issues where the land allocation is concerned for factory setting up. Today, the government occupies 82 percent of land in the country. ‘There is major red tape in releasing land for that purpose. Therefore, BOI should be made a one stop shop to clear up those bottlenecks.
‘The issues in the tourism and hotel sectors, need to be addressed fast. In the hotel sector, our room charges are very high compared to other destinations in the region.
‘The construction industry is going through a major setback. The major issue in question is that the cost of construction is 40 percent higher than in the region.
‘In 2023 government revenue touched Rs 3 trillion. The country’s expenditure is approximately Rs 5.3 trillion, which includes, defence, education, maintaining the public sector and other expenditure. For the interest for loans or debt servicing, another Rs 2.5 trillion has to be paid.
‘Reductions in the defence budget and reductions in hefty public sector expenditure, including for members of the three armed forces, could help reduce the government’s financial burden to a greater extent. ‘
Business
Advocata Institute highlights regulatory barrier limiting women’s overtime earnings
Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.
Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.
Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.
The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.
Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.
Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.
Business
Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed
Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.
The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.
Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.
“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.
Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.
The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.
MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.
Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.
Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.
Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.
By Ifham Nizam
Business
Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone
The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.
However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.
The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.
The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.
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