Business
SL’s debt restructuring issues disrupt Kandy city’s JICA-funded sanitation project
By Ifham Nizam
Despite almost three years passing, a billion rupee sanitation project intended to be implemented within Kandy city limits is yet to reach completion as the Japan International Cooperating Agency (JICA)—the executing bilateral aid agency—is yet to release the final Rs. 1 billion required to complete the project’s final stage due to matters connected to Sri Lanka’s debt restructuring process.
“The reason JICA has given for not releasing the final Rs. 1 billion to complete the last leg of the project is Sri Lanka’s debt restructuring. With the Rs. 21 billion we received in three packages to complete the three stages of surveying, planning and building infrastructure to establish the wastewater management system, at least 4,000 households, commercial properties (state and private) and institutions (state and private) are utilizing the facilities. The balance monies, upon receipt, will enable the connecting of the remaining 6,000 wastewater connections, a senior engineer said.
Kandy Municipal Engineer D. M. D. S. Seneviratne told The Island Financial Review that although Rs. 22 billion has been spent on the project, the work has stopped midway. ‘While Rs. 21 billion has been utilized for the sanitation project, it has not been implemented at the final level, he said.
When contacted JICA representative Takashi Kondo told The Island Financial Review that all JICA-funded projects, and not only the Kandy project, were stopped following Sri Lanka’s defaulting on its public debt and the negative image consequently created.
However, Kondo expressed confidence that they are ready to undertake all the technical responsibilities.
The Centre for Environmental Justice (CEJ) Executive Director Dilena Pathragoda told The Island Financial Review that as a civic-minded organization, they would do their best for the betterment of the people of Kandy. ‘We would request officials of the Japanese embassy and JICA to consider providing Rs. 1 billion, he added.
‘Building the necessary infrastructure facilities to collect wastewater generated from kitchens, bathrooms and toilets across 733 hectares and providing connections to 12,200 private residences, state institutions, and commercial property units in a densely congested city with complex topography is no easy task, he explained.
Speaking to journalists about the challenges faced by the Municipal Council, Kandy MMC’s Chief Health and Medical Officer Dr. Pasan Jayasinghe said, “Kandy city municipal limits cater to the water and sanitation needs of tax-paying residents and business owners, who number approximately 125,000. In addition, we have 375, 000 daily visitors who access the city for tourism, administrative needs, schooling, work and medical requirements, to name a few.
‘The facility built with international agency funds provides us with the capacity to accommodate the sanitation needs of up to 300,000 people. We currently exceed capacity, especially during torrential rains or when there is overcrowding in the city; for instance, during holidays, he said.
Jayasinghe reiterated that even if communities or businesses complained about pollution caused by improper wastewater disposal, given the limited staff, which included five Public Health Inspectors (PHIs) and himself, there were mounting challenges in attending to all complaints.
‘Ideally, one PHI should provide their services to 10,000 persons in the field. However, although I am the Chief Health and Medical Officer, I have to take over some of the field visits. Each of us has to oversee double the capacity of people. We then have to ensure that visitors to the city are provided with hygienic sanitation facilities and that eateries are selling hygienically prepared food. We have serious capacity issues when executing field duties in a city that serves the sanitation needs of 500,000 people, Jayasinghe added.
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
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