Category: Daily Financial Times

DIMO’s recognition at the Great HR Awards 2025, where the organisation emerged as Winner – Diversified Group of Companies Sector and Runner Up – Extra Large Category, reflects the strength, consistency, and maturity of its human resource practices. Organised by the Chartered Institute of Personnel Management (CIPM) Sri Lanka in collaboration with Mercer, the awards assess organisations against globally aligned HR standards, making the recognition a meaningful endorsement of DIMO’s approach to managing people at scale.

For a diversified organisation, effective people management is defined not only by intent, but by governance, consistency, and the ability to manage complexity across varied business contexts. DIMO’s people strategy has evolved with this understanding, positioning HR as a core business function that supports leadership effectiveness, organisational stability, and long-term performance.

From a management perspective, HR at DIMO plays a central role in enabling informed decision-making and ensuring organisational readiness across a Group that has generated over LKR 90 billion in revenue over the last two financial years and employs more than 2,000 people. People practices are designed to align closely with business priorities while maintaining common standards across the Group. This balance allows individual business units the flexibility to respond to sector-specific requirements without compromising governance, consistency, or values.

A key focus has been the use of data and analytics to strengthen workforce planning, performance management, and leadership decisions. Evidence-based insights support leaders in understanding capability requirements, managing risk, and ensuring continuity across critical roles. This disciplined approach reinforces HR’s role as a strategic partner rather than a purely operational function.

Dilrukshi Kurukulasuriya, Executive Director and Chief Human Resources Officer of DIMO, says, ‘DIMO’s grounded, practical reflection on consistent strategy, data-driven insights, and leadership accountability continues to support business performance and organisational sustainability. Through value-driven leadership and resilient people practices, we are committed to a continuous advancement on shaping exceptional employee experiences that drive our collective success.’

The Runner Up recognition in the Extra-Large Category acknowledges DIMO’s commitment to professional HR excellence at scale. It reflects structured governance, continuous capability building within the HR function, and alignment with best practices that strengthen credibility and consistency across the organisation.

While strategy and systems provide structure, the effectiveness of HR is ultimately reflected in the employee experience. At DIMO, this experience is shaped by clarity of expectations, fairness in processes, and access to opportunity. Employees operate within clearly defined performance frameworks, transparent reward structures, and career pathways that support both individual growth and organisational needs.

Employee relations are managed through structured and predictable mechanisms that promote fairness and industrial stability. This institutional approach ensures that issues are addressed consistently and constructively, contributing to trust and continuity across the workforce. Such stability is particularly critical in a diversified organisation, where alignment and collaboration across businesses are essential.

Managers across the Group are expected to act as people leaders, ensuring that day-to-day interactions reflect organisational values and standards. This emphasis on leadership accountability helps translate policy into practice and reinforces a culture of respect, professionalism, and responsibility.

The Winner – Diversified Group of Companies Sector award recognises DIMO’s ability to maintain coherence in people practices across diverse operations. Common values, aligned expectations, and a shared organisational identity provide a unifying framework, while allowing sufficient flexibility for businesses to operate effectively within their respective markets.

This consistency supports employee mobility, leadership development, and cultural alignment, strengthening the Group’s overall capability. It also reinforces DIMO’s employer reputation as an organisation that values discipline, fairness, and long-term investment in its people.

DIMO views the recognition at the Great HR Awards 2025 not as an endpoint, but as affirmation of a deliberate and sustained approach to people management. The awards confirm that disciplined governance, data-informed decision-making, and leadership accountability across our businesses – mobility, aftersales, infrastructure engineering, agriculture, healthcare and education remain critical to organisational success.

Staying true to DIMO’s purpose of ‘Fuelling Dreams and Aspirations’ through its Employee Value Proposition of ‘Making Work Enjoyable and Rewarding,’ the organization continues to evolve alongside shifting business and workforce expectations. Through value-driven leadership and a steadfast commitment to shaping exceptional employee experiences, DIMO aims to uphold the standards reflected in this recognition while contributing to the continued advancement of professional HR practices in Sri Lanka.

DFCC Bank yesterday said it has received regulatory approval from the Central Bank of Sri Lanka (CBSL) to proceed with the acquisition of Standard Chartered Bank’s Sri Lankan wealth and retail banking businesses.

With the approval, DFCC said it will proceed with the next phase of the transaction, including the planned migration and integration activities.

The deal worth Rs. 3.7 billion is expected to be completed by the second quarter of 2026, the bank said.

Sri Lanka’s debt restructuring has delivered measurable relief, but debt risks remain elevated and the country’s capacity to repay the International Monetary Fund (IMF) has come under added strain following Cyclone Ditwah, according to the IMF’s December staff assessment.

While public debt dynamics have improved materially since the 2022 crisis, IMF staff cautioned that fiscal discipline will be critical as Sri Lanka balances recovery, reconstruction, and debt sustainability. The Fund said the gains achieved through restructuring could be undermined if emergency and reconstruction spending are not carefully managed within existing fiscal rules.

Between 2022 and 2024, Sri Lanka’s public debt declined from 125.8% of GDP to 105.7%, while gross financing needs fell from 33.9% of GDP to 21.9%. Interest payments relative to Government revenue also eased sharply, declining from 79% to 56%. Despite these improvements, the IMF said post-restructuring debt indicators remain high, requiring a calibrated fiscal strategy to preserve sustainability while supporting economic recovery.

The assessment placed particular emphasis on adherence to the Public Financial Management Act (PFMA) in deploying emergency spending. IMF staff said any supplementary allocations under the 2026 Budget should be used only when funding needs cannot be met through Budget reallocations, the annual Budget reserve, or the Contingencies Fund.

Any breach of the primary expenditure ceiling, the Fund noted, would need to be justified under the Act’s escape clauses and accompanied by a recovery plan and corrective measures in subsequent budgets.

IMF staff said draft PFMA regulations covering Budget execution, fiscal rules, and enforcement procedures are being finalised and will help reinforce fiscal discipline, even during emergencies. The Fund also urged Sri Lanka to strengthen financial preparedness for future disasters through dedicated disaster funds, insurance mechanisms, and other risk-transfer tools.

Governance and transparency were flagged as central to sustaining confidence. The IMF said all emergency and reconstruction-related spending, including allocations through the Rebuilding Sri Lanka Fund and donor-financed projects, must comply with accountability requirements under the PFMA framework.

This includes publishing procurement contracts, disclosing beneficial ownership information, and ensuring that any procurement deviations during disaster response are documented and publicly disclosed. Regular public reporting and independent audits were described as essential safeguards.

On Sri Lanka’s capacity to repay the Fund, IMF staff assessed it as adequate but subject to significant risks, with the assessment contingent on continued implementation of reforms under the Extended Fund Facility (EFF). High debt levels and elevated gross financing needs were cited as ongoing vulnerabilities that underscore the importance of institutional strengthening and durable fiscal frameworks.

Capacity-to-repay indicators have weakened temporarily compared with the Fourth Review. Under the Rapid Financing Instrument (RFI) and the EFF, IMF credit outstanding is projected to peak at 3.1% of GDP in 2027, unchanged from earlier projections.

However, exposure relative to exports of goods and services has risen to 15.6% from 14.1%, while exposure relative to gross reserves has increased to 25.6% from 24.2%. Repurchases and charges are expected to peak in 2032 and remain broadly in line with earlier projections at 2.3% of exports and 3.6% of gross reserves.

The IMF said sustaining the gains from debt restructuring while meeting post-Ditwah reconstruction needs will depend on strict adherence to fiscal rules, strong governance, and continued commitment to the reform agenda underpinning the IMF-supported program.

It noted that adequate safeguards are in place. The Central Bank of Sri Lanka (CBSL) has implemented most recommendations from the 2023 Safeguards Assessment. The CBSL’s balance sheet continues to strengthen with equity reaching 1% of GDP at end-2024, reducing risks highlighted in the Safeguards Assessment.

The CBSL continues to monitor its financial position and strengthen its balance sheet stress testing approach, including through an upcoming IMF TA. The CBSL has also strengthened its internal audit and risk management practices. The RFI requires an update to the Safeguards Assessment, which will be completed in due course, the IMF report noted.

The IMF holds that at just 0.2% of GDP, the RFI is an appropriate instrument to help Sri Lanka safeguard its recent fiscal gains:

‘The RFI will provide crucial Budget support to finance disaster response, including restoration of essential services, macro-critical infrastructure repairs, and emergency assistance to those affected. The urgent balance of paymemts need triggered by Cyclone Ditwah is expected to be resolved within 12 months, without major changes to the authorities’ policy plans. Authorities’ track record of reform implementation, current policies under the EFF-particularly safeguards under the PFMA-and the limited size of the RFI mitigate risks to fiscal and debt sustainability. Authorities remain committed to the policy objectives of the IMF-supported program, which has underpinned a robust economic recovery, price stability, revenue-based fiscal consolidation, and the rebuilding of international reserves,’ the IMF said.

Acorn Group has been named the winner in the Hospitality, Tourism and Leisure category at the Great HR Awards, organized by the Chartered Institute of Personnel Management (CIPM) Sri Lanka in partnership with Mercer. The recognition highlights the Group’s strong focus on progressive, people-centred human resource practices and its continued investment in building a modern, inclusive workplace culture.

The awards ceremony took place on 25 November 2025 at Cinnamon Life, bringing together leading organization from across Sri Lanka. The event was attended by Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, as Chief Guest, and Ms. Nadeeka Wataliyadda, Director General of Labour, as Guest of Honour. Over 100 organizations competed across multiple award categories, including Excellence Awards, Commendations, and Sector Awards, making the recognition a significant achievement.

All participating organizations were assessed through a comprehensive evaluation process aligned with international HR best practices. Submissions were reviewed by an expert panel, with emphasis placed on areas such as workplace culture, employee engagement, learning and development, digital adoption, and long-term people strategy.

Speaking at the ceremony, CIPM President Priyantha Ranasinghe highlighted the broader purpose of the awards, noting that they recognize organizations that actively enhance employee experience, adapt to evolving workforce needs, and contribute positively to industry standards.

For Acorn Group, the award reflects a sustained commitment to nurturing a work environment where people are supported, empowered, and encouraged to grow. The Group’s HR approach places strong emphasis on inclusivity, continuous development, and recognizing individual contribution, ensuring that employees remain at the centre of organizational progress.

Commenting on the achievement, Acorn Group stated that the recognition reinforces its focus on aligning HR practices with global benchmarks while continuing to innovate across the sectors it operates in. The Group also acknowledged the role of CIPM Sri Lanka in advancing HR excellence through initiatives that promote best practice and professional standards across industries.

As Acorn Group marks this milestone, it remains focused on strengthening its people strategies and building future-ready workplaces that support both organizational performance and employee well being. The recognition serves as further motivation for the Group to continue setting high standards in human resource management within the hospitality, tourism and leisure sector.

Colombo South Under-15 cricketers continued their dominance in junior cricket by clinching the Sri Lanka Youth League title for a record second consecutive year, defeating the Central Hills team in the final played at the Mercantile Cricket Association (MCA) Ground recently.

Sponsored by Ceylon Agro Industries (Prima Group Sri Lanka) for a record 18th year, the tournament once again highlighted Colombo South’s consistency, depth, and ability to perform under pressure at the highest youth level.

Asked to take first lease of the wicket, Colombo South posted a competitive total of 197 in their allotted 50 overs, despite early setbacks. Their top order struggled initially, slipping to 39-3 within the first 14 overs. However, the hallmark of their success over the past two seasons has been the fight back and never give up qualities of the youngsters, which was evident as the middle order rebuilt the innings with maturity and discipline.

Miyura Bandara led the recovery with a composed 41, while Chenuka Methsara (37) and Ranuda Ranasinghe (33) provided valuable support. Sanga Dulmika added crucial lower-order runs with 24, ensuring Colombo South reached a defendable total. For Central Hills, Thinula Rajapakse claimed three wickets and Sathira Denuwan picked up two, but the collective batting effort proved decisive.

Defending the total, Colombo South’s bowlers delivered a disciplined and relentless performance. The Central Hills side struggled from the outset, losing wickets at regular intervals to slump to 45-7. The pressure applied by Colombo South reflected their superior planning and execution throughout the tournament. Although Shashith Bandara (41*) and Savitha Vithanage (22) offered brief resistance to lend respectability to the chase, Central Hills were eventually bowled out for 117. Sathira Denuwan and Lithum Devasurendra shared two wickets apiece as Colombo South sealed a comprehensive victory. This triumph not only underlined Colombo South’s consistency in the Prima-sponsored event but also confirmed their status as the benchmark team in Sri Lanka’s Under-15 cricket.

Player of the Final: Ranuda Ranasinghe (Colombo South)

Most Valuable Player and Best Batsman: Gesandu Bisas (Galle)

Best Bowler: Sathira Denuwan (Kandy)

Chief scores:

Colombo South 197 (50) (Miyuru Bandara 41, Chenuka Mithsara 37, Ranuda Ranasinghe 33, Sanuga Dulmika 24, Thinulaka Rajapaksa 3/40, Sathira Denuwan 2/28.

Kandy 117 (42) (Shashith Bandara 41*, Savitha Vithanage 22, Denuwan Sathish 2/8, Lithum Devasurendra 2/20.

The Western Province continued to account for the largest share of the country’s nominal Gross Domestic Product (GDP) in 2024, although the combined contribution of the other provinces increased during the year.

Provisional estimates compiled by the Statistics Department wof the Central Bank of Sri Lanka show the Western Province contributing 42.4% of nominal GDP in 2024, down from 44.0% in 2023, reflecting relatively stronger growth in several other regions.

The North Western Province ranked second with an 11.5% share of the economy, followed by the Central Province at 10.7%. The Southern Province accounted for 8.9%, while Sabaragamuwa contributed 7.7%. Shares of the Central, Eastern, North Western, Sabaragamuwa and Uva provinces all increased compared with 2023.

Sri Lanka’s nominal GDP for 2024 was estimated at Rs. 29.9 trillion, up from Rs. 27.4 trillion in 2023. The Western Province generated Rs. 12.66 trillion of output, while the North Western and Central provinces recorded Rs. 3.45 trillion and Rs. 3.20 trillion respectively.

In terms of sectoral contributions, the North Western Province remained the largest contributor to agriculture, accounting for 20.0% of national agricultural value added in 2024. The Central Province followed with 13.9%, while the Southern Province contributed 11.8%.

Industrial activity continued to be concentrated in the Western Province, which accounted for 47.6% of total industry output. The North Western Province contributed 12.0%, while the Central Province accounted for 9.6% of industry value added.

The Western Province also led services activity, contributing 44.5% of the total, followed by the Central Province at 10.7% and the North Western Province at 10.1%.

The Central Bank noted that PGDP estimates are derived using a top-down approach, disaggregating national GDP compiled by the Department of Census and Statistics to the provincial level based on relevant indicators, with 2024 figures classified as provisional.

A Sri Lankan trade delegation has recently concluded a strategic mission to Phnom Penh, Cambodia, coinciding with the Cambodia Agriculture Exhibition. The visit was organised by the Sri Lanka – Greater Mekong Business Council (SLGMBC) of The Ceylon Chamber of Commerce and initiated by the Honorary Consul of the Kingdom of Cambodia in Sri Lanka, Ruwan Waidyaratne.

During the visit Waidyaratne also met with key officials of the Consular Affairs Department including Consular Affairs Department Director Seng Socheat. The delegation was warmly welcomed by Cambodian Chamber of Commerce President Neak Oknha Kith Meng who reaffirmed Cambodia’s strong support for foreign direct investment and encouraged Sri Lanka to advocate for a direct flight between the two countries to boost tourism, trade, and travel. In turn, the Sri Lankan delegation invited Cambodian companies to explore emerging opportunities in Sri Lanka’s evolving economic landscape.

The mission included an extensive briefing from the Cambodian Investment Board (CIB) under the Council for the Development of Cambodia (CDC). CIB officials highlighted Cambodia’s favourable investment climate, fully dollarised economy, and efficient investment registration process, completed within 20 working days. The delegation learned about the benefits of Cambodia’s 2021 Law on Investment, including three to nine years of income tax exemptions, VAT exemptions for purchases from local suppliers, and enhanced tax deductions of up to 150% for research, development, and human capital initiatives. Following the briefing, the Sri Lankan delegation agreed to organise a virtual roadshow for investors, a proposal welcomed by the CIB.

The program also featured a meeting with Secretary of State of the Ministry of Agriculture, Forestry and Fisheries Prak David. Discussions highlighted opportunities in premium rice varieties such as the award-winning Phka Rumduol, cashew production-where Cambodia ranks third globally with its high-yield M23 variety-and agrifood processing, a sector poised for expansion with strong government support. Cambodia reaffirmed its commitment to modernising agriculture through initiatives focused on strengthening rural communities, enhancing extension services, and stabilising prices to protect farmers.

The delegation further engaged with the Ministry of Commerce, the Ministry of Industry, Science, Technology and Innovation, logistics industry leaders, and the Cambodia Microfinance Association. These discussions focused on opportunities for Sri Lankan investment in Cambodia’s rapidly expanding microfinance sector, alongside potential knowledge-sharing between the two countries’ associations. Additional prospects were identified across logistics, industrial development, digital innovation, and other commercial sectors, reflecting Cambodia’s efforts to diversify its economy beyond traditional drivers such as garments, tourism, construction, and agriculture.

Cambodia’s economic outlook remains positive, with growth stabilising around 5-6% and momentum building in digital transformation, industrial upgrading, and infrastructure development. Against this backdrop, the Sri Lankan trade mission successfully positioned Cambodia as a promising destination for Sri Lankan investors and exporters. With follow-up initiatives, including the proposed virtual investment roadshow, both countries are well placed to transform these discussions into tangible business partnerships and deepen bilateral economic cooperation.

The Bank of Ceylon (BOC), Sri Lanka’s premier bank, extended its national mission of financial inclusion to the Southern Province with the opening of a new BOC Connect Agent Banking Centre at the Maduwa Sub Post Office. The Centre was declared open by the Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe, marking a significant milestone for the island community.

Maduwa Island, home to nearly 300 families, a school, pre school, two temples and a sub post office which functions as the main community service hub, has long faced challenges in accessing formal banking services due to its remote and unique geography. The island connects to the mainland through a narrow, dilapidated six-foot-wide wooden bridge, making boat transport the primary means of travel. Today, around 400 boats operate in the area, supporting the livelihoods of families engaged in cinnamon cultivation, cinnamon-based cottage industries, fish therapy centers, eco-tourism ventures and river-based transport services. Although the island attracts both local and foreign visitors year-round, its residents have struggled to access banking services on the mainland, compelling them to cross the river for even basic transactions.

The newly established BOC Connect Agent Banking Centre brings much-needed convenience to the people of Maduwa by enabling them to carry out day-to-day financial transactions without leaving the island. The Centre offers essential banking services, including deposits, withdrawals, bill payments, loan facilities, remittances, mobile reloads and a range of digital services. It also supports the expansion of digital payment adoption among small and medium-scale businesses, while encouraging saving habits among school children. Through this initiative, BOC aims to strengthen digital financial literacy and create broader economic opportunities for rural communities.

During the ceremony, Dr. Weerasinghe carried out the first digital transaction using LankaQR, symbolically introducing secure cashless payment options to local enterprises. This initiative is expected to empower MSMEs and SMEs operating in cinnamon cultivation ( Hasindu Cinnamon Island), farming, traditional Kirala juice ( Sandya Juice Bar) production, fish therapy, boat services and other tourism-related sectors by providing safe and convenient digital payment facilities. The digital payment option will also make transactions easier for tourists visiting the island, encouraging the flow of cashless tourism activities.

BOC further extended its support to the island’s education sector by donating essential school items, including books, stationery and learning materials, to the 131-year-old Maduwa Primary School and Singithi Pre School. The schools, which caters to the children of the island’s families, welcomed the Governor of the Central Bank and the Chairman of the Bank of Ceylon for the first time in its history.

Another significant moment of the event was the introduction of Sri Lanka’s first digital till (Pin Kataya) at the historic Sri Sudharmaarama Purana Viharaya, a temple with a history spanning over 200 years. Visitors were able to make donations electronically through a QR-based system, and the first digital contribution was made by Dr. Weerasinghe. BOC aims to introduce this system to religious institutions island-wide, providing a modern, safe and convenient method of offering donations.

The ceremony was attended by several distinguished guests, including the Governor of the Central Bank of Sri Lanka Dr. P. Nandalal Weerasinghe, Chairman of Bank of Ceylon Kavinda De Zoysa, Acting General Manager and Chief Executive Officer Y. A. Jayathilake, Director of Payments and Settlements of the Central Bank K. V. K. Alwis, Deputy Postmaster General for Operations Premachandra Herath, Deputy Postmaster General for the Southern Province Raveendra Gunarathna, and Principal of Maduwa Primary School H. G. Chaminda Wickramarathna, BOC Deputy General Manager Branch Operations Priyal Silva, Cheif Marketing Officer Sameera Liyanage, Assistant General Manager (Product Development and Business Process Re-Engineering Project) Suresh Perera together with members of the corporate and executive management of BOC.

This initiative in Maduwa Island marks another significant step forward in BOC’s national financial inclusion programme carried out in partnership with Sri Lanka Post. The Bank has now established 225 BOC Connect Agent Banking Centres across the country, including nearly 100 post offices and sub post offices, expanding access to banking facilities for rural and semi-urban communities and creating opportunities for savings, digital banking and sustainable livelihoods. The opening in Maduwa follows the successful introduction of the initiative in the Northern Province, including the recent inauguration in Analativu Island.

For more than 86 years, the Bank of Ceylon has been a driving force in shaping Sri Lanka’s financial landscape, connecting people and businesses to economic opportunities across the nation. With a network of over 2,300 service points including more than 660 branches, BOC provides efficient and accessible banking services across the island. The Bank continues to earn recognition for its performance, being ranked the top Sri Lankan bank among the Top 1000 World Banks 2025 by The Banker Magazine UK and was awarded the People’s Banking Services Brand of the Year at the SLIM KANTAR People’s Awards 2024. With international operations in London, the Maldives, Chennai and the Seychelles, the Bank continues to strengthen its global presence while remaining committed to uplifting local communities through financial empowerment.

Over the past few weeks, I have visited several areas affected by the recent cyclone. While signs of normalcy are gradually returning, the impact remains clearly visible. Damaged roads, disrupted utilities, flooded premises and broken supply chains are stark reminders of how vulnerable our local economies are to climate-related shocks. An estimated 2.3 million people – more than half of them women – were living in areas flooded by Cyclone Ditwah that struck Sri Lanka on 28 November. For many businesses-particularly small and medium enterprises (SMEs)-this cyclone has struck at a time when they were only just beginning to recover from two severe blows: the COVID-19 pandemic and the subsequent economic meltdown. Rebuilding after such a disaster cannot be viewed narrowly as a relief exercise. It must be approached as a broader economic recovery and resilience-building effort. This will require close collaboration between the state and the private sector, with clarity of roles, speed of execution and a shared sense of urgency.

Restoring the foundations of economic activity

The immediate priority must be the restoration of critical infrastructure. Roads, bridges, electricity, water supply and telecommunications form the backbone of commercial activity, which is getting restored . Without their swift rehabilitation, even well-intentioned financial assistance to businesses will fail to translate into real recovery. Infrastructure repair must therefore be treated not merely as a public works function, but as an essential enabler of livelihoods and local commerce. Beyond physical infrastructure, attention must turn quickly to rebuilding livelihoods. Many SMEs in the affected areas operate with very limited financial buffers. A few weeks of disruption can erase months, if not years, of hard-earned progress. These enterprises employ a significant share of the local workforce and are deeply embedded in regional value chains-spanning agriculture, transport, tourism, retail and light manufacturing. Supporting them is not only about saving individual businesses; it is about stabilising entire local economies.

Targeted support for SMEs

According to data released 13,698 businesses have been affected so far. The breakdown is 5,639 micro enterprises, 4,636 small businesses, 2,986 medium-scale firms, and 437 large businesses . Many of these enterprises are concentrated in flood-prone districts, what SMEs need at this stage is targeted handholding rather than generic relief. Access to working capital at concessional terms, temporary moratoriums on existing loans, and flexible repayment structures will be essential. Equally important is speed. Assistance that arrives too late often comes after businesses have already shut their doors. Financial institutions, regulators and development agencies must therefore work together to design simple, fast-tracked mechanisms that recognise the extraordinary circumstances faced by affected enterprises. Financial support alone, however, will not be sufficient. Many businesses have lost equipment, inventory and, in some cases, their premises altogether. Insurance penetration remains low, and claims processes are often slow and complex. This underscores the need for stronger public-private solutions, including risk-sharing instruments and disaster-linked financing frameworks that can be activated quickly when such events occur.

The role of the private sector

The private sector’s role must extend beyond Balance Sheets. Larger corporates can support affected SMEs through supply-chain financing, assured off-take arrangements and technical assistance. Chambers of commerce and industry bodies can act as vital coordination platforms, helping to channel support to where it is most needed and avoiding duplication of effort. At a broader level, the cyclone serves as a reminder that climate resilience must become a core component of our economic planning.

Rebuilding should not simply aim to restore what was lost, but to improve standards-through stronger infrastructure, better land-use planning and more resilient business models. This is especially important in regions that are increasingly exposed to extreme weather events. Sri Lanka has endured multiple shocks in recent years, and the resilience of its entrepreneurs and workers has been remarkable. With timely and coordinated action between the state and the private sector, we can ensure that this latest disaster does not reverse hard-won gains, but instead becomes a catalyst for building stronger, more resilient local economies.

Reference

https://www.sundaytimes.lk/251214/business-times/smes-needed-a-national-sme-reconstruction-fund-624166.html

Rebuilding After the Cyclone: Why Recovery Must Start With People, Not Projects

https://www.worldbank.org/en/news/press-release/2025/12/12/the-world-bank-group-statement-on-sri-lanka-following-cyclone-ditwah

A group of 121 leading economists and academics issued the following statement on ‘Sri Lanka’s Climate Crisis and IMF Restructuring Deal’.

Sri Lanka’s 17th IMF sovereign debt restructuring agreement is executed under the 48-month IMF Extended Fund Facility (EFF) and provides limited debt service relief. It therefore failed to provide a sustainable solution to Sri Lanka’s debt crisis and left Sri Lanka extremely vulnerable to external shocks – particularly climate-induced disasters.

Those shocks have now hit with the catastrophic aftermath of Cyclone Ditwah – marked by widespread flooding, deadly landslides, displacement of more than 1.4 million people, and nearly 800 individuals either dead or missing. The concern over the country’s future deepens.

Under the current IMF-supported arrangement, creditors agreed to reduce the size of Sri Lanka’s debt payments, measured in net present value terms, by 17%.

This left Sri Lanka with Government external debt payments of around 25% of revenue, one of the highest rates in the world. According to IMF staff, under the IMF’s own models, Sri Lanka has a 50% chance of defaulting and/or needing another debt restructuring, even after debt relief.

The IMF publicly said that ‘debt risks will remain high for many years’.

Sri Lanka is now confronting a severe economic shock triggered by the recent cyclone, extensive flooding and landslides, which has inflicted extensive damage to infrastructure, livelihoods, and key sectors of the economy. This environmental emergency is poised to absorb – and potentially exceed – the extremely limited fiscal space created by the current debt restructuring package.

Additional external debt is already being taken on from the IMF, and more lending to deal with the impacts of the disaster is likely.

Given Sri Lanka’s vulnerability to climate shocks, the scale of destruction underscores how insufficient the present debt deal is in safeguarding economic stability. The country’s already fragile socio-economic landscape heightens the risks: diminished revenues, rising reconstruction costs, and increased import needs could quickly undermine projected gains from the restructuring.

In this context, the nation remains acutely exposed to further external shocks, whether climatic or economic, highlighting the need for a more comprehensive, resilience-oriented debt solution.

The IMF itself has acknowledged that Sri Lanka’s path to ‘debt sustainability remains knife-edged,’ with the country only narrowly meeting targets while social-spending benchmarks were missed.

In light of the current climate catastrophe that has hit Sri Lanka, we wish to highlight the following points:

The existing restructuring – modest, conditional and tied to uncertain macroeconomic outcomes – is inadequate to protect the vulnerable majority from recurrent climate and external shocks.

By prioritising debt service continuity over deep debt relief, the IMF programme perpetuates structural exposure of Sri Lanka’s economy and population to future disasters.

Continuing to impose debt repayment obligations under these conditions fails to consider Sri Lanka’s capacity to service debt, which should instead be based on its foreign exchange (forex) earnings.

Current onerous debt servicing undermines efforts to rebuild lives, restore agriculture, infrastructure, and provide social protection.

Therefore, we call for immediate suspension of Sri Lanka’s external sovereign debt payments, and a new restructuring that restores debt sustainability under the new circumstances. We propose the adoption of a genuinely sustainable framework that:

Recognises climate-driven disasters as systemic, not exceptional, shocks.

Provides significant debt cancellation – with no punitive conditions – to free up fiscal space for disaster recovery, social protection, reconstruction and development.

Prioritises human welfare, environmental protection, and long-term viability over financial obligations to external creditors.

Only a fundamental rethinking of the global debt regime – one based on justice and sustainability – will offer Sri Lanka a realistic chance to recover from the climate impacts and build an equitable future for all.

Coordinated by: Professor Jayati Ghosh; Debt Justice, UK; Institute of Political Economy, Sri Lanka.

The signatories:

1. Prof. Jayati Ghosh – University of Massachusetts-Amherst, USA

2. Prof. Joseph Stiglitz – Columbia University, USA

3. Prof. Thomas Piketty – Sciences Po / Paris School of Economics, France

4. Prof. Yanis Varoufakis – University of Athens, Greece

5. Prof. Martin Guzman – Columbia University, USA

6. Prof. C. P. Chandrasekhar – University of Massachusetts-Amherst, USA

7. Prof. Stephanie Kelton – Stony Brook University, USA

8. Prof. Jason Hickel – ICTA-University of Barcelona, Spain / LSE, United Kingdom

9. Prof. Guy Standing – SOAS, University of London, United Kingdom

10. Prof. Fadhel Kaboub – Global Institute for Sustainable Prosperity, USA

11. Prof. Gary Dymski – University of Leeds, United Kingdom

12. Prof. Sudip Chaudhuri – Indian Institute of Management Calcutta, India

13. Prof. Kevin Gallagher – Boston University, USA

14. Prof. Radhika Balakrishnan – Rutgers University, USA

15. Prof. Gerald Epstein – University of Massachusetts, USA

16. Prof. Utsa Patnaik – Jawaharlal Nehru University, India

17. Prof. Mariana Reis Maria – Universidade Estadual de Campinas, Brazil

18. Prof. Irene van Staveren – Erasmus University Rotterdam, Netherlands

19. Prof. Juan Carlos Moreno-Brid – UNAM, Mexico

20. Prof. Surajit Mazumdar – Jawaharlal Nehru University, India

21. Prof. Howard Nicholas – International School of Business, Ho Chi Minh City, Vietnam

22. Prof. A. Haroon Akram-Lodhi – Trent University, Canada

23. Prof. Gunseli Berik – University of Utah, USA

24. Prof. Sergio Cesaratto – University of Siena, Italy

25. Prof. Yavuz Yazar – University of Denver, USA

26. Prof. Suzanne Bergeron – University of Michigan-Dearborn, USA

27. Prof. S. Subramanian – Madras Institute of Development Studies, India

28. Prof. David Ruccio – University of Notre Dame, USA

29. Prof. M. V. Lee Badgett – University of Massachusetts-Amherst, USA

30. Prof. Julie Nelson – University of Massachusetts-Boston, USA

31. Prof. Farida Khan – University of Colorado, USA

32. Prof. Smriti Rao – Assumption University, USA

33. Prof. Gustavo Indart – University of Toronto, Canada

34. Prof. R. Ramakumar – Tata Institute of Social Sciences, Mumbai, India

35. Prof. Randy Albelda – University of Massachusetts-Boston, USA

36. Prof. Yana Rodgers – Rutgers University, USA

37. Dr. Isabella Weber – University of Massachusetts-Amherst, USA

38. Dr. Lucas Chancel – Sciences Po / Paris School of Economics, France

39. Dr. Dean Baker – University of Massachusetts-Amherst, USA

40. Dr. Ndongo Samba Sylla – IDEAS, Senegal

41. Dr. Pedro Rossi – Global Fund for a New Economy, Brazil

42. Dr. H. Himanshu – Jawaharlal Nehru University, India

43. Dr. Ingrid Kvangraven – King’s College London, United Kingdom

44. Dr. Surbhi Kesar – SOAS, University of London, United Kingdom

45. Dr. Narayani Sritharan – AidData, USA

46. Dr. Tracey Freiberg – John Jay College, USA

47. Dr. Ajit Zacharias – Levy Institute, Bard College, USA

48. Dr. Smita Ramnarain – University of Rhode Island, USA

49. Dr. Sheba Tejani – King’s College London, United Kingdom

50. Prof. Vijay Prashad – Tricontinental Institute, Argentina

51. Prof. Barbara Harriss-White – University of Oxford, United Kingdom

52. Prof. Shirin Rai – SOAS, University of London, United Kingdom

53. Prof. Kanchana N. Ruwanpura – University of Gothenburg, Sweden

54. Prof. Alessandra Mezzadri – SOAS, University of London, United Kingdom

55. Prof. Raj Patel – University of Texas at Austin, USA

56. Prof. Kanishka Goonewardena – University of Toronto, Canada

57. Prof. Vasuki Nesiah – New York University, USA

58. Prof. Aram Ziai – University of Kassel, Germany

59. Prof. Matthias Goldman – EBS University, Germany

60. Prof. Nata Duvvury – National University of Ireland Galway, Ireland

61. Prof. Maggie Leung – University of Amsterdam, Netherlands

62. Prof. Padraig Carmody – Trinity College Dublin, Ireland

63. Prof. Bart Klem – Ghent University, Belgium

64. Prof. Roar Høstaker – Inland Norway University of Applied Sciences, Norway

65. Prof. Benjamin Selwyn – University of Sussex, United Kingdom

66. Prof. John Morrissey – National University of Ireland Galway, Ireland

67. Prof. Kanishka Jayasuriya – Murdoch University, Australia

68. Prof. Wilfried Swenden – University of Edinburgh, United Kingdom

69. Prof. Roger Jeffery – University of Edinburgh, United Kingdom

70. Prof. Naomi Hossain – SOAS, University of London, United Kingdom

71. Prof. Paige West – Columbia University, USA

72. Prof. Dina Siddiqi – New York University, USA

73. Prof. Christopher Cramer – SOAS, University of London, United Kingdom

74. Prof. Ruvani Ranasinha – King’s College London, United Kingdom

75. Prof. Maria Heim – Amherst College, USA

76. Prof. John Harris – Simon Fraser University, Canada

77. Prof. Nirmala Salgado – Augustana College, USA

78. Prof. Vinay Gidwani – University of Minnesota, USA

79. Prof. Dia da Costa – University of Alberta, Canada

80. Prof. Atilio Boron – University of Buenos Aires, Argentina

81. Prof. Anne Blackburn – Cornell University, USA

82. Prof. Deepta Chopra – University of Sussex, United Kingdom

83. Prof. Muthucumaraswamy Sornaraha – National University of Singapore, Singapore

84. Prof. Rahul Mukherji – Heidelberg University, Germany

85. Dr. Juan Pablo Bohoslavsky – CONICET / National University of Rio Negro, Argentina

86. Dr. Mieke Lopes Cardozo – University of Amsterdam, Netherlands

87. Dr. Thiruni Kelegama – University of Oxford, United Kingdom

88. Dr. Giselle Thompson – University of Alberta, Canada

89. Dr. Nimanthi Rajasingham-Perera – Colgate University, USA

90. Dr. Andrew Newsham – SOAS, University of London, United Kingdom

91. Dr. Bhumika Muchhala – The New School, USA

92. Dr. Alexandre da Costa – University of Alberta, Canada / Brazil

93. Dr. Sharika Thiranagama – Stanford University, USA

94. Dr. Amali Wedagedara – Bandaranaike Centre for International Studies, Sri Lanka

95. Dr. Eva Ambos – University of Tbingen, Germany

96. Dr. Paul Gilbert – University of Sussex, United Kingdom

97. Dr. Priyadarshini Premarathne – University of Peradeniya, Sri Lanka

98. Dr. Farah Mihlar – Oxford Brookes University, United Kingdom

99. Dr. MeeNilancko Theiventharan – University of Oslo, Norway

100. Dr. Shyamain Wickramasingha – University of Sussex, United Kingdom

101. Dr. Joeri Scholtens – University of Amsterdam, Netherlands

102. Dr. Susantha Rasnayake – University of Peradeniya, Sri Lanka

103. Dr. Alicia Yamin – Harvard University, USA

104. Dr. Lara Merling – UCL Institute for Innovation and Public Purpose, United Kingdom

105. Dr. Rohith Jyothish – O. P. Jindal Global University, India

106. Dr. Jon Phillips – SOAS, University of London, United Kingdom

107. Anne Pettifor – Jubilee Campaign, United Kingdom

108. Tim Jones – Debt Justice, United Kingdom

109. Kate Raworth – Environmental Change Institute, Canada

110. Veronica Gróndona – ICRICT, Argentina

111. Maia Colodenco – Suramericana Visión, Argentina

112. Dr. Farwa Sial – IDEAS, Asia Region

113. Emma Bury – AidData, USA

114. Robin Jespert – Goethe University Frankfurt, Germany

115. Kevin Cashman – John Jay College, CUNY, USA

116. Gabriele Koehler – UNRISD, Switzerland

117. Vincent Chee – Raffles College of Higher Education, Singapore

118. Matheus Machado – IBMEC, Brazil

119. Chiara Subrizi – University of Urbino Carlo Bo, Italy

120. Kowsalya Duraiswamy – Sri Lanka

121. Emma Burgisser – Christian Aid, United Kingdom