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The Doing Good Index (DGI) 2022 reveals widespread pessimism about the future of Sri Lanka’s social sector

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Optimism among social sector organisations in Sri Lanka is low, according to Doing Good Index 2022, a new report from the Centre for Asian Philanthropy and Society (CAPS) in partnership with the Institute of Policy Studies of Sri Lanka (IPS). The social impact study exposes the underlying structural conditions preventing the region’s social sectors from thriving. It also identifies opportunities for government, companies, philanthropists, and social delivery organisations (SDOs) to work together to address social and environmental challenges.

Sri Lanka’s ongoing social, political and economic turmoil has created a challenging environment for social sector organisations. Only a quarter of surveyed organisations feel optimistic about the sector’s future, less than half the Asian average of 56%.

“While the factors inhibiting Sri Lanka’s social sector are embedded within a larger context of the circumstances facing the country, there are still steps that can be taken to make improvements”, said Dr. Ruth Shapiro, Co-founder and Chief Executive of CAPS. “The need to revive the social sector is urgent, and the Doing Good Index is a starting point to show us how the sector can be fortified.”

Foreign funding for the social sector has declined, with only 50% of surveyed organisations in Sri Lanka receiving income from overseas sources, compared to 71% in 2020. Previously the dominant funding source for nonprofits, making up 59% of an organisation’s budget in 2020, this proportion has since fallen to less than a third in 2022. Exacerbated by the economic crisis, government funding, including grants and procurement contracts, is also low, comprising less than 2% of an organisation’s income.

Constant changes to the regulatory environment have created a challenging ecosystem for Sri Lankan SDOs to operate. Over the past 25 years, the NGO Secretariat has come under the purview of nine different ministries, resulting in high levels of uncertainty and unease among SDOs. Policy consistency and transparency are necessary enabling factors for the social sector to effectively carry out its work for Sri Lankan society.

The social sector has also seen major changes in the funding landscape. Foreign funding for the social sector has declined, with only 50% of surveyed organisations in Sri Lanka receiving income from overseas sources, compared to 71% in 2020. Previously the dominant funding source for nonprofits, making up 59% of an organisation’s budget in 2020, this proportion has since fallen to less than a third in 2022. Exacerbated by the economic crisis, government funding, including grants and procurement contracts, is also low, comprising less than 2% of an organisation’s income.

“Local support for Sri Lanka’s social sector organisations is high, and there is room to facilitate domestic giving”, said Dr. Asanka Wijesinghe, Research Fellow of the Institute of Policy Studies of Sri Lanka. “Sri Lanka has faced—and will continue to face—many challenges. It will be important to foster trust between the private, public, and social sectors so we can work together to rebuild.”

To join the event, please visit the link: bit.ly/dgi2022srilanka



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Business

UN Global Compact Network Sri Lanka amplifies industry leadership

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A UN Global Network Sri Lanka dignitary at the signing event making an address

UN Global Compact Network Sri Lanka is introducing a transformative patron structure for its Working Groups, set to take effect in 2025. This initiative strengthens the Network’s commitment to advancing corporate sustainability by amplifying the leadership of select companies within their respective issue areas. The Memoranda of Understanding (MoUs) were signed on March 20, 2025, at the 80 Club, in the presence of the Network’s Board Members.

Network Sri Lanka’s Working Groups have long provided a platform for businesses to exchange knowledge and drive industry-wide progress on sustainability. With this new structure, leading companies will take on an enhanced role in guiding participants within their Working Groups, offering mentorship, strategic insights, and best practices to drive collective action.

As Patrons, these companies will host events, provide guidance, and shape the direction of their respective Working Groups, ensuring that discussions translate into tangible, scalable solutions aligned with national and global sustainability priorities.

Meet the Patrons and Their Areas of Leadership

MAS Holdings (Pvt) Ltd – Gender & Diversity

MAS Holdings will lead the Gender & Diversity Working Group, championing inclusive business practices, gender equality, and women’s leadership in corporate Sri Lanka.

A. Baur & Co (Pvt) Ltd – Business & Human Rights

A. Baur & Co will lead efforts within the Business & Human Rights Working Group, championing ethical business practices, human rights protections, and responsible corporate conduct.

Talawakelle Tea Estates PLC – Climate Emergency Task Force

Talawakelle Tea Estates will drive action within the Climate Emergency Task Force, supporting businesses in climate change mitigation, adaptation and resilience strategies.

Kelani Valley Plantations PLC – Water & Ocean Stewardship

Kelani Valley Plantations will support the Water & Ocean Stewardship Working Group, focusing on sustainable water management and conservation practices.

Dilmah Ceylon Tea Company PLC – Water & Ocean Stewardship & Sustainable Supply Chain & SME

Dilmah will take on a dual Patron role, sharing its expertise in sustainable supply chains and water stewardship, particularly in global supply chain sustainability and marine biodiversity conservation efforts.

Teejay Lanka PLC – Sustainable Supply Chain & SME

Teejay Lanka will support the Sustainable Supply Chain Working Group, bringing its expertise in ethical sourcing, circularity, and sustainable manufacturing.

“As a steward of A. Baur & Co. (Pvt.) Ltd.’s 127-year legacy, built on ethical governance and the unwavering dedication of our people. Ensuring a living wage is not just a moral imperative, it’s also a smart business strategy. When the employees have the financial security they need, they’re more productive, engaged, and loyal. We recognize that this transformative change cannot be achieved in isolation. By working together with other stakeholders, we can create a ripple effect that benefits everyone. Through our commitment to advocating for a living wage, we aim to inspire broader private sector participation, facilitate the exchange of best practices, and strengthen the ecosystem for equitable economic growth in Sri Lanka.” – Rolf Blaser, Managing Director / CEO, A. Baur & Co. (Pvt.) Ltd.

Network Sri Lanka is the Country Network of the UN Global Compact, mobilizing businesses to integrate sustainability into their core strategies. Through its Working Groups, the Network facilitates peer learning, collaboration, and collective action to drive meaningful change across industries.

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Assetline Finance entity credit rating upgrade highlights strategic growth and stability

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Ashan Nissanka, Director & CEO, Assetline Finance Limited

Assetline Finance Limited (AFL), the flagship company of the Financial Services Cluster of David Pieris Holdings, has received an upgraded entity credit rating from Lanka Rating Agency (LRA) to A with a Positive Outlook, up from its previous rating of A- with a Stable Outlook. This upgrade, along with the improved outlook, reflects AFL’s strong financial fundamentals, sustainable growth trajectory, and the increasing confidence of the market in its long-term stability and performance.

This new rating reflects the Company’s unwavering commitment to prudent financial stewardship, a strong focus on sound risk management practices, and a strategic approach to value creation. During the year, the Company demonstrated steady growth in its asset base, surpassing LKR 50 billion and reinforcing its strong position within the industry. This growth was driven by strategic investments and a disciplined approach to capital management, which has consistently reinforced the Company’s liquidity and financial position. It clearly demonstrates AFL’s operational efficiency and its ability to generate long-term shareholder value.

Commenting on the upgraded rating, Ashan Nissanka, Director & CEO of AFL, stated: “Our favourable rating further positions us to unlock greater opportunities, drive progress, and strengthen stakeholder trust. It is not just a reflection of where we stand today but symbolises our path ahead towards a stronger future.”

Furthermore, the Company maintained a strong and well-managed capital structure, with a capital adequacy ratio significantly above the minimum regulatory requirement. It also successfully secured international funding from the Japan-based ASEAN Women Empowerment Fund (JAWEF), managed by BlueOrchard Finance Ltd., a globally recognized impact investment manager. Securing this funding affirms the Company’s financial resilience and its ongoing commitment to empowering women entrepreneurs. Through its Liyadiriya initiative, the Company continues to improve financial accessibility for rural women, contributing to inclusive economic development.

The Company also expanded its geographical footprint by opening four new branches, increasing its total branch network to 59 and establishing a nationwide presence. This expansion was aimed at broadening the customer base, particularly in underserved areas, to promote financial inclusivity. It aligns with the Company’s strategic intent to support women entrepreneurs across Sri Lanka. Additionally, the Company’s lending focus remains aligned with national priorities, particularly in the renewable energy and SME sectors, which are seen as key drivers of long-term development.

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Sampath Bank partners with COYLE to champion SME growth and entrepreneurship

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Sampath Bank recently formalised a strategic partnership with the Chamber of Young Lankan Entrepreneurs (COYLE) by signing a Memorandum of Understanding (MOU) at its Head Office. This partnership highlights Sampath Bank’s ongoing commitment to promoting innovation, driving business growth, and empowering Sri Lanka’s entrepreneurial ecosystem.

Through this collaboration, Sampath Bank will serve as the official banking partner for the COYLE Awards and the Young Lankan Program, two flagship initiatives that recognise business excellence and nurture emerging leaders. Supporting these initiatives allows the Bank to create a strong pipeline for SME engagement, provide access to tailored financial solutions, and build meaningful relationships with the country’s leading entrepreneurs.

Tharaka Ranwala, Senior Deputy General Manager – Marketing, Customer Care, and Card Centre, Sampath Bank (2nd from L), exchanged the MOU with Suren Chandraratna, Senior Vice Chairman, COYLE (2nd from R), in the presence of Anjali Goonetilake, Senior Manager – Marketing, Sampath Bank (1st from L), and Jayamal Gunaratne, Project Chairman, COYLE (1st from R).

The partnership further positions Sampath Bank at the forefront of SME development in Sri Lanka, distinguishing it as a long-term enabler of entrepreneurial success and a key driver of sustainable economic progress.

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