Business

SL’s education sector, ‘key battleground for long term economic recovery’

Published

1 year ago

2024/10/18

By Ifham Nizam

As Sri Lanka faces the aftershocks of multiple crises, including the COVID-19 pandemic, economic downturn and the Easter Sunday attacks, the country’s education sector has become a key battleground for securing long-term economic recovery, according to Institute of Policy Studies (IPS) Research Fellow Dr. Bilesha Weeraratne.

In an expert panel discussion recently in Colombo, IPS stakeholders explored the critical role of education in building a skilled workforce, while also highlighting the immense challenges that must be addressed to turn education into a catalyst for growth.

Weeraratne said that with Sri Lanka suffering a negative growth rate of 6.7% by the third quarter of 2023, the labour market remains one of the hardest-hit areas.

Weeraratne added: “As wages stagnate, the incentive for workers to improve their skills or seek better employment dwindles, feeding into a cycle of low productivity. Thus crisis management has prompted emergency measures, like the five-year no-pay leave policy for public sector employees.” However, she explained that these are short-term fixes that do not address the deeper structural issues plaguing the labour market.

Weeraratne stressed that education is seen as a powerful tool to break this cycle, but the sector itself has been grappling with severe disruptions and underfunding, she said, adding that Sri Lanka’s education system is crucial in fostering productivity and innovation, but it faces serious hurdles.

Her presentation delved into the many challenges facing education. From the 2019 Easter bomb attacks to the pandemic and ongoing economic crises, these external pressures have led to a decrease in education investments, depreciating resources, and the adoption of outdated approaches that struggle to meet the demands of a rapidly changing labour market.

IPS, Director of Research, Dr. Nisha Arunatilake said that one alarming statistic revealed that while 97% of children aged 5 to 16 are enrolled in school, a significant proportion—especially those with special needs or from deprived socioeconomic backgrounds—are left behind. After the compulsory education age of 16, participation drops drastically, with only 63% qualifying for advanced level exams and just 20% attending university due to capacity issues.

She noted that Sri Lanka’s education system is ill-equipped to handle the demands of an evolving job market driven by technological change. `The need for highly skilled workers is growing, but 65% of 20 to 24-year-olds are not engaged in any form of education, leading to a poorly skilled workforce. While the government has made efforts to introduce vocational training, these programs have not scaled up sufficiently to address the needs of the economy.’

Worse still, she said, the quality of education is lagging. A 2019 study by NEREC revealed that students’ English and mathematics skills are well below international standards. Students scored an average of just 34% in English and a dismal 20% in mathematics, signaling a serious gap in the education system’s ability to prepare children for a globalized, technology-driven future.

Arunatilake added: `Compounding the issue is the unequal allocation of resources across Sri Lanka’s education system. Elite schools receive the majority of well-trained teachers, while rural schools, which often serve lower-income families, suffer from poor staffing and inadequate resources. Meanwhile, policy inconsistency—driven by frequent changes in education ministers and short-term priorities—has stymied long-term progress.’

‘Given the current economic constraints, while increasing funding is ideal, it is not feasible in the short term. Instead, innovative low-cost solutions could offer a way forward. Examples could be given from Pakistan, where technology is being leveraged to provide education to children with special needs and virtual labs are being used in rural areas to deliver hands-on learning experiences.

‘Stronger governance and better allocation of resources are needed. Sri Lanka’s education system has suffered from weak policy implementation and political interference. Improving governance, addressing resource inequalities, and strengthening disaster risk management are among the key recommendations.

‘While Sri Lanka’s education system faces formidable challenges, it remains a pivotal force in rebuilding the nation’s economy. If the government can implement effective reforms and tap into technological solutions, the country could better equip its youth with the skills needed to thrive in an increasingly digital and globalized world.’

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Business

SEC Sri Lanka eases Minimum Public Holding Rules for listings via introductions to boost market flexibility

Published

17 hours ago

2026/01/1

Thilina Walpola

The Securities and Exchange Commission of Sri Lanka (SEC) has approved amendments to the Colombo Stock Exchange (CSE) Listing Rules to provide greater flexibility regarding the Minimum Public Holding (MPH) requirement for companies listing through the Introduction method.

These revisions were proposed and deliberated under Project 6 – New Listings (Public and Private), one of 12 key strategic initiatives launched by the SEC to strengthen Sri Lanka’s capital market framework. Project 6 aims to drive national capital formation, promote listings by highlighting benefits and opportunities for listed entities, and attract large-scale corporates to enhance market depth, liquidity, and investor confidence.

The amendments reflect a joint effort by the SEC and CSE, underscoring strong collaboration between the regulator and the Exchange to address evolving market needs while maintaining market integrity, transparency, and investor protection.

The salient features of the amendments to the CSE listing Rules are as follows;

Entities seeking listing by way of an Introduction on the Main Board or Diri Savi Board that are unable to meet the MPH requirement at the time of submitting the initial listing application, may now be granted a listing, subject to certain conditions on compliance.

Non-public shareholders who have held their shares for a minimum period of eighteen months prior to the date of the initial listing application may divest up to a maximum 2% of their shares each month during the six months commencing from the date of listing, and simultaneously, be subject to a lock-in requirement of 30% of their respective shareholdings as at the date of listing, until MPH compliance or 18 months from the date of listing, whichever occurs first.

A phased MPH compliance framework has been introduced requiring a minimum 50% compliance with MPH requirement within 12 months and full compliance within 18 months from the date of listing.

Entities should include clear disclosures in the Introductory Document confirming their obligation to meet MPH requirements within the prescribed timelines.

In the event of non-compliance with the MPH requirement, certain enforcement actions have also been introduced.

The revised framework is expected to encourage more companies to consider listing via Introduction, thereby broadening market participation, improving liquidity, and contributing to the overall development of Sri Lanka’s capital market. Issuers, investors, and market intermediaries will benefit from a more enabling yet well-regulated listing environment.

Business

Manufacturing counters propel share market to positive territory

Published

17 hours ago

2026/01/1

Thilina Walpola

Stock market activities were positive yesterday, mainly driven by manufacturing sector counters, especially Sierra Cables, Royal Ceramics and ACL Cables. Further, there was some investor confidence in construction sector counters as well.

Amid those developments both indices moved upwards. The All Share Price Index went up by 150.54 points, while the S and P SL20 rose by 41.5 points. Turnover stood at Rs 4.65 billion with six crossings.

Those crossings were reported in Royal Ceramics which crossed 3.8 million shares to the tune of Rs 174.3 million; its share s traded at Rs 45.20, VallibelOne 1.4 million shares crossed to the tune of Rs 138.6 million; its shares traded at Rs 99, Melstacorp 500,000 shares crossed for Rs 87.24 million; its shares traded at Rs 174.50, Sierra Cables two million shares crossed for Rs 68.2 million, its shares sold at Rs 34.30, Kingsbury 1.5 million shares crossed for Rs 31.8 million; its shares traded at Rs 21.20.

In the retail market companies that mainly contributed to the turnover were; Sierra Cables Rs 418 million (20 million shares traded), Royal Ceramics Rs 363 million (eight million shares traded), Colombo Dockyards Rs 323 million (1.7 million shares traded), ACL Rs 311 million (3.5 million shares traded), Renuka Agri Rs 149 million (12.3 million shares traded), Sampath Bank Rs 94.7 million (648,000 shares traded) and Bogala Graphite Rs 86.4 million (529,000 shares traded). During the day 122.8 million shares volumes changed hands in 34453 transactions.

Yesterday the rupee opened at Rs 310.00/25 to the US dollar in the spot market, weaker from Rs 310.00/310.20 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

Business

Atlas ‘Paata Lowak Dinana Hetak’ celebrates emerging artists nationwide

Published

17 hours ago

2026/01/1

Thilina Walpola

Atlas, Sri Lanka’s leading learning brand, reaffirmed its purpose of making learning fun and enjoyable through the Atlas All-Island Art Competition 2025, which concluded with a gifting ceremony held recently at Arcade Independence Square under the theme ‘Atlas paata lowak dinana hetak’. Students from Preschool to Grade 11 showcased their talents across five categories, with all island winners receiving cash prizes, certificates, and gift packs. Additionally, merit winners in each category were also recognized. The event brought together students, parents, and educators, highlighting Sri Lanka’s cultural diversity, nurturing young talent, and reinforcing Atlas’s long-standing commitment to education, creativity, and building confidence among schoolchildren. The event concluded with the ‘Atlas Art Carnival’, which brought children and parents together through games and creative art activities in a fun and lively atmosphere.