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Sri Lanka needs ‘bridge financing’ to last next six months, says Indrajit Coomaraswamy

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by Sanath Nanayakkare

Sri Lanka needs to take steps on getting to a framework programme with the IMF, restructure its external debt and bring some bridge financing to last for next six months until negotiations with the IMF on external debt is completed,”former central bank governor Dr. Indrajit Coomaraswamy said recently, at a forum hosted by CT CLSA.

“IMF won’t be able to transact with Sri Lanka until we fix the unsustainable situation in the country,” he said.

Dr. Coomaraswamy highlighted the fact that IMF may include fiscal consolidation in a programme of debt restructuring for Sri Lanka.

CT CLSA, a leading capital market service provider that offers investment banking, stockbroking and wealth management services , conducted the forum on the timely topic ‘ The IMF and the Order of Priorities for Reforms.”

Elaborating on the topic, he said, “In fact, we have a solvency problem on our external debt. Trying to treat it as a cash flow problem and addresing it with short-term measures may create a bigger problem. However, we are beginning to see light at the end of the tunnel due to the policy measures taken by the government recently. Now having approached the IMF, and the government considering some external debt restructuring; we are shifting to the right path, but this is going to be tough.”

“Interest rates are about to rise. As per previous levels where inflation was high, 91-day treasury bill yield was 16%, SLFR was 12% and SDFR was 10.5%. According to former deputy governor of the central bank, Dr. W. A. Wijewardena, the interest rates are expected to double from the current levels.”

Responding to a question on the upward movement of the exchange rate, he said, “I think we could have taken measures to reduce the imbalance between demand and supply of foreign exchange before letting the exchange rate float.”

Referring to domestic debt, Dr. Coomaraswamy said,”We should not suggest or ever take into consideration to restructure our domestic debt. If we restructure the domestic debt, it will lead to serious undermining of the stability of the financial system. Such a situation may not help Sri Lanka in meeting its commitments with external creditors.”

“In fact, the crisis was two years in the making from the time the government cut taxes after the presidential election The country’s banking system is highly exposed to sovereign debt because in recent years, the banking system provided for bridging the budget deficit of the country. And therefore, if there is any restructuring of domestic debt, the impact of such a move could spill over to the balance sheets of the banks and would likely create a crisis in the financial sector. And some of the banks would be affected in the event of external debt restructuring. However, this effect could be managed through regulatory programmes of the central bank. The only way to solve this problem on a sustainable basis is to create a primary surplus in the budget,” he emphasised.

“All creditors of Sri Lanka would seek equality of treatment, and therefore, multilateral debt; namely, World Bank, ADB and the little bit of IMF debt should not be restructured. If it were to be restructured, those institutions could stop their operations in Sri Lanka, and even their financing in the pipeline may not be disbursed.”

“Bilateral debt, mainly OECD which is West + Japan are part of the Paris Club. As China and India are not part of the Paris Club, one of the possibilities for us is to see whether we are eligible for B20 framework earmarked for low-income countries. [B20 proposes to consider the issue of public debt management within the international financial architecture reform].

Dr. Dushni Weerakoon, the Executive Director of the Institute of Policy Studies of Sri Lanka (IPS) was also a panelist at the CT CLSA forum.

When she was asked how Sri Lanka should put the reforms in a particular order to be implemented, she said,”We no longer can afford sequential reforms. What is most critical for Sri Lanka in terms of its economic outlook is to gain some sense of macro stability as a first priority.”

“We are currently witnessing a clear shift in policy. We have to work on several fronts simultaneously with well-coordinated action on three fronts; namely, monetary policy front, exchange rate front and fiscal front. We have entered a monetary policy tightening cycle. The moves of the central bank led to a market-driven exchange rate. But the fiscal side is missing. As long as this is neglected the progress made on monetary and exchange rate fronts will not bring stability. This will put pressure on other two fronts.”

“There is slowness on fiscal adjustment maybe because it’s difficult to do it. Fiscal adjustment will require to raise taxes on the revenue side, and the spending side will require to freeze expenditures. Clear communication of these reforms to the general public is important as these changes should not create more social unrest. The way to do this could be that greater sacrifices would have to be made by those who have greater ability to pay taxes. The richer segment of the Sri Lankan population may have to bear a larger burden of the tax adjustments”.

“On the expenditure side, government spending may have to be frozen and public sector wages and salaries may also have to undergo changes. In such a context, there will be the need to try as much as possible to provide social safety nets for needy segments. It could be provided by implementing a cash transfer programme to reduce the potential social unrest.”

“The other reforms include State Owned Enterprise (SOE) reforms, labor market reforms and banking sector reforms,” she said.

When asked about the possible scenario of debt restructuring with debt to equity swaps, she said,” The possible cost of that is; you will face a prolonged negotiating process with the threat of legal action on the country. Unlike in the past, now our creditor landscape is huge. Our creditors are mostly based in the U.S., and then we have bilateral debt providers such as China and India. we will have to bring all these stakeholders to a common ground and ensure equality of treatment.”

“Another risk is that we need to know that the bonds issued by Sri Lanka has clauses where the majority of the bond holders can buy the minority. If not, there could be a hold off problem where we may have to face legal consequences.”

“The recent debt restructuring of Ecuador and Argentina only had restructuring of interest rate adjustments and maturity extensions and did not receive a haircut,” she pointed out.

Sri Lanka for the first time in 63 years achieved a Rs. 21.9 billion surplus in the primary balance of the fiscal account during the first 10 months of 2017. The country recorded a primary surplus of 0.6 percent of GDP in 2018, the second year running. Dr. Indrajit Coomaraswamy was the governor of the central bank at that time.



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‘With AI around, hardly anyone does any real work,’ says university don

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Professor Hiran Amarasekera of the University of Sri Jayewardenepura presents a Gold Award to Future Fibres Lanka (Pvt) Ltd at the SLAAQP Awards ceremony held in Colombo on February 12, 2026

While the corporate world celebrates the merger of efficiency and ecology, a leading academic last week issued a sobering warning: the very technology driving the next “Green Revolution” may leave the human workforce behind.

Speaking at the recently concluded Green Productivity Awards, organised by the Sri Lanka Association for the Advancement of Quality and Productivity (SLAAQP), Professor Hiran Amarasekera of the University of Sri Jayewardenepura characterised Artificial Intelligence (AI) as a “godsend” for environmental sustainability – but one that carries profound social risks.

Professor Amarasekera’s keynote address cut through the celebratory atmosphere, targeting a perceived complacency among top-tier management.

“Managers are already using AI, but many CEOs, directors and managing directors remain sceptical,” he observed. “They think AI will come in another five years. No, it is already here.”

According to the Professor, AI is no longer a futuristic concept but a functional tool currently revolutionising green metrics. He highlighted how the technology is already replacing manual monitoring for energy optimisation, using predictive algorithms to drastically reduce industrial waste, and automating sustainability reporting – turning months of consumption data analysis into a task of mere seconds.

While these advancements provide a massive boost to the “bottom line” and help organisations meet the national Net Zero pledge, Prof. Amarasekera warned of a looming “danger”: the displacement of human workers.

“AI is boosting productivity while cutting back the need for human resources. What will happen to the jobs and the wider society? Not even the USA or other advanced economies have an answer to this,” he noted.

In a moment that elicited both laughter and reflection from the audience, he touched upon the irony of modern higher education: “Students produce their work through AI and we detect plagiarism through AI. So, with AI around, hardly anyone does any real work!”

The technological warning was balanced by the moral urgency of Senior Professor Ajith de Alwis from the University of Moratuwa. Invoking the words of David Attenborough, Prof. de Alwis asked the audience how they would look into the eyes of their grandchildren if they knew of the world’s collapse and did nothing.

The takeaway message of the evening was clear: While AI provides the tools to save the planet, human leadership remains the only force capable of managing the social consequences of that salvation.

Despite the warnings of future challenges, the SLAAQP awards proved that Sri Lankan industries are currently making notable strides. The event recognised 38 organisations – including 28 Gold Award winners – across sectors ranging from plantation, garments and rubber to poultry and textiles.

These winners were evaluated on four critical pillars: Leadership, Environmental Sustainability, Productivity Enhancement and Social Contribution.

By Sanath Nanayakkare

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Gemological Report of Ceylon sets new global benchmark for local gemstone certification

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The facility utilises a screening process where three gemologists evaluate each stone independently to ensure error-free results Pic by Nishan S. Priyantha

Steps into a critical void to earn recognition in international markets

For decades, Sri Lanka has been globally revered as the “Island of Gems,” yet the industry has long grappled with a paradoxical challenge: while the Sri Lankan soil yields the world’s finest stones, the local certification process has often struggled to command the same recognition in international markets.

Stepping into this critical void is the Gemological Report of Ceylon (GRC). Located at No. 97, Galle Road, Colombo 3, this newly launched laboratory is on a mission to redefine the standards of local gem certification, ensuring that the “fatherhood” of Sri Lankan gemstones remains firmly within its home soil.

Founded by Milinda Edirisinghe, a seasoned gemologist with over 20 years of experience in mining, trading, and geological study, GRC is the result of a lifelong observation of the industry’s “trust gap.”

“I saw a critical disparity,” says Edirisinghe, who received specialised training in Thailand, the global hub for gemstone treatments. “Sri Lankan exporters often face unfair skepticism in markets like Thailand, Hong Kong, and the US. International buyers often view local reports with doubt. I launched GRC to provide a local institute that is on par with the highest-caliber laboratories in the world.”

He made these comments while speaking to media at the new laboratory.

According to him, in its first month of operation, GRC has already seen a surge in demand, processing 30 to 40 stones daily – a success driven largely by its word-of-mouth reputation.

Milinda Edirisinghe performs a sensory inspection of a gemstone using a loupe to assess its initial characteristics

“The lab’s rapid growth is built on a foundation of total transparency. Unlike traditional setups, GRC employs a rigorous triple-blind screening process: three independent gemologists evaluate each specimen – from Sapphires, Ruby and Emeralds to semi-precious stones, polycrystals, rare meteorites, and even organic materials like natural Pearls, and rare coral species etc., used in high-end jewelry. By evaluating the stones without consulting one another, the three gemologists’ independent findings are then synthesised into a final, authoritative and error-free assessment,” he explained.

“As gemstone treatments become increasingly sophisticated – ranging from Beryllium diffusion to evolving heat and irradiation treatments – the need for advanced technology is paramount. GRC’s facility is equipped to identify the full spectrum of enhancements, ensuring the end consumer knows the exact “human intervention” history of their asset,” he further said.

However, Edirisinghe maintains that technology is a tool, not a replacement. When asked if AI could eventually handle the certification job alone, he noted:

“AI already assists our workflow to an extent, but a human gemologist remains an indispensable part of the process. Just as a surgeon uses advanced technology to enhance precision, they must still be present to execute the nuances of a complex operation. AI cannot truly ‘see,’ touch, or feel the soul of a stone.”

He further added, “AI can support our findings, but it cannot replace the gemologist’s ‘eye-view’ and the tactile senses that go a long way in issuing an accurate certification.”

Furthermore, GRC leverages an international expert network. “If we encounter a complex inclusion, we utilize virtual screen-sharing with leading labs in Thailand for real-time peer review,” Edirisinghe explains. “Our conclusions are science-based facts, not just opinions.”

Beyond technical excellence, GRC serves a vital economic purpose. Historically, local dealers spent thousands of dollars obtaining international certificates. GRC offers these world-class reports at a fraction of the cost, with detailed certificates starting from LKR 15,000 for full reports, a medium report at LKR 6,000, “memo cards” at LKR 1,500, and verbal opinions for LKR 500.

“By providing a credible, globally-recognised home-based laboratory, we are stemming the outflow of foreign currency to international labs,” said Edirisinghe.

With plans to participate in upcoming exhibitions in Dubai, Hong Kong, and the USA, GRC is positioning itself as a global contender. As the industry shifts toward “knowledgeable customers” who view jewellery as a liquid asset, GRC stands ready to provide the clarity and integrity the Sri Lankan gem industry deserves.

“If Sri Lanka produces the best stones in the world, it is only right that we also provide the world-class expertise to certify them. Our mission is to ensure that the ‘fatherhood’ of these precious stones remains in Sri Lanka, backed by a certificate that is respected from the USA to the European Union,” Edirisinghe said in conclusion.

By Sanath Nanayakkare

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Ministry of Brands to launch Sri Lanka’s first off-price retail destination

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Ministry of Brands to launch Sri Lanka’s first off-price retail destination

Sri Lanka’s retail landscape will reach a major milestone with the launch of Ministry of Brands (MOB), the country’s first off-price retailer. The flagship store is set to open on 16 February 2026, introducing Sri Lankan consumers to authentic global luxury and premium brands at discounts of up to 90% off original retail prices.

Backed by Akbar Brothers, Ministry of Brands brings the globally established off-price model to South Asia for the first time. The concept allows customers to shop for genuine designer and brand-name products at significantly reduced prices while supporting more sustainable retail practices.

The 10,000 sq. ft. flagship store, located at 28/9, Vajira Road, R.A. De Mel Mawatha, Colombo 4, will feature an extensive range across apparel, footwear, handbags, accessories, homeware, and more. Ministry of Brands will carry over 2,000 international and designer brands spanning womenswear, menswear, childrenswear, home, and accessories, including names such as Gucci, Ferragamo, Valentino, Michael Kors, Ralph Lauren, Burberry, Rag & Bone, Lacoste, Puma, UGG, HOKA, Brooks, Air Jordan, and many more.

Off-price retail is one of the fastest-growing global retail segments, helping fashion houses responsibly manage excess inventory. With the UN Environment Programme estimating 92 million tonnes of textile waste generated annually, sustainable retail models such as off-price are increasingly important.

“Sri Lanka manufactures for many of the world’s leading designer labels, yet these products have often remained out of reach for local consumers,” said Director of Ministry of Brands, Aamir Akbarally. “Through off-price retail, we are proud to make genuine designer brands more accessible to our fellow Sri Lankans, offering premium fashion at affordable prices while delivering a world-class shopping experience built on Akbar Brothers’ longstanding values of integrity, quality, and trust.”

Ministry of Brands Director, Ramzey Hammoud added: “With decades of experience in off-price retail, we see this as an exciting new growth chapter for Sri Lanka’s retail landscape. Our goal is simple: to allow customers to shop global designer brands locally at the best prices, while rediscovering the thrill of the find through a constantly changing, treasure-hunt shopping experience.”

Following the Colombo flagship launch, Ministry of Brands will open a second location at the One Galle Face Mall, with plans to expand across South Asia and Australia.

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