Category: Daily Financial Times

At the sixth Monetary Policy Review for 2025 announced yesterday, the Central Bank of Sri Lanka (CBSL) decided to hold the Overnight Policy Rate at 7.75%. This marked the third consecutive monetary policy decision to keep rates on hold. The Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR), which are linked to OPR with predetermined margins of ± 50 basis points, also remained unchanged at 7.25% and 8.25%, respectively. The statutory reserve rate was left unchanged at 2%.

The official press release stated the Board arrived at this decision after carefully considering evolving developments and the outlook on both domestic and global fronts. The Board is of the view that the current monetary policy stance will support steering inflation towards the target of 5%. The press release also noted the following: ‘Credit to the private sector has recorded a notable and broad-based expansion thus far in 2025, supported by the low-interest rate environment.

Imports have risen in recent months, contributing to a widening trade deficit. However, strong inflows from tourism and workers’ remittances have cushioned the impact on the external current account.

Gross Official Reserves were maintained above

$ 6 billion thus far in 2025, supported by net foreign exchange purchases by the Central Bank. Expected additional inflows in December 2025 include receipts from the multilateral organisations.’

The weighted average rates at the weekly Treasury bill auction conducted yesterday remained unchanged across the board. Accordingly, the yields on the 91-day, the 182-day and the 364-day tenors were recorded at 7.52%, 7.91% and 8.03%. This marks the 19th week where T-Bill rates have stayed broadly anchored around prevailing levels.

However, the auction was undersubscribed, raising only 64.32% or Rs. 55.637 billion out of the Rs 86.50 billion offered. This marks the fourth consecutive auction to undersubscribed while the bids received to offered amount ratio stood at 1.44 times.

The Phase II of subscription is now open across all three ISINs until 3.00 p.m. of business day prior to settlement date (i.e., 27.11.2025) at the WAYRs determined for the said ISINs at the auction.

This comes ahead of the Treasury Bond auction, scheduled to be conducted today (27 November). The round of auctions will have a total offered amount of Rs. 42 billion across three available maturities.

The auction will be comprised of:

Rs. 20 billion from a 1 March 2030 Maturity bearing a coupon rate of 9.50%

Rs. 22 billion from a 1 June 2033 Maturity bearing a coupon rate of 9%

The settlement for which will be held on 1 December 2025.

For context, the previous Treasury Bond auctions held on 13 November, with a total offered amount of Rs. 80 billion across two available maturities, was fully subscribed at the first phase in competitive bidding. Total bids received exceeded the offered amount by 2.73 times. This marked the first instance in 7 consecutive bond auctions to raise the entire offered amount.

Maturity-wise the results were as follows: The 01.07.30 maturity (9.75% coupon) maturity was issued at the weighted average rate of 9.56%. The entire maturity-wise offered amount of Rs. 35 billion was fully snapped up.

The 15.06.35 maturity (10.70% coupon) was issued at the weighted average rate of 10.69%. The entire maturity-wise offered amount of Rs. 45 billion was raised at the first phase.

The Secondary Bond market yesterday saw yields increase following the Monetary Policy Announcement mainly on the short end of the yield curve. However, the long end of the yield curve continued to consolidate and hold broadly steady. The transaction volumes were seen at healthy levels boosted by several block transactions on selected tenors.

In terms of the Secondary Bond market trade summary, the 01.05.27 and 15.09.27 maturities were seen trading at the rates of 8.69%-8.70% and 8.82% respectively. The 01.05.28, 01.07.28 and 15.12.28 maturities at the rates of 9.10%-9.14%, 9.10% and 9.15%-9.18%. The 15.06.29, 15.09.29 and 15.10.29 maturities were seen trading higher at the rates of 9.49%, 9.55% and 9.54% respectively. The 01.07.30 maturity was seen trading up the range of 9.60%-9.65%. The 15.03.31 maturity was seen changing hands at the rate of 9.94%. The 15.09.34 maturity was seen trading at the rate of 10.62% and the 15.06.35 maturity at the rate of 10.69%.

The total Secondary market Treasury Bond transacted volume for 25 November was Rs. 8.82 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.94% and 7.96% respectively.

The net liquidity surplus was recorded at Rs. 91.37 billion yesterday as an amount of Rs. 103.48 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%. An amount of Rs. 12.11 billion was withdrawn from the Central Bank›s SLFR (Standard Lending Facility Rate) of 8.25%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed depreciating marginally to 308.00/308.10. as against its previous day’s closing level of Rs. 307.90/308.00.

The total USD/LKR traded volume for 25 November 2025 was $ 68.50 million.

The Central Bank of Sri Lanka (CBSL) yesterday delivering the sixth and final Monetary Policy Review for 2025 announced that rates would remain unchanged at 7.75%.

The decision to hold policy rates steady was made at a Monetary Board review on Tuesday, after assessing both domestic and global developments.

The Board is of the view that the current monetary policy stance will help steer inflation towards the target of 5% in the period ahead, while supporting growth.

‘The decision is based on the progress seen so far this year and price stability and potential growth,’ Dr. Weerasinghe said during the post-Monetary Policy Review meeting media briefing yesterday.

He said stability is the most important foundation for sustainable economic growth. ‘We expect the economy to grow by 4.5% this year,’ he added.

He also said that further easing of rates is still possible as the country has now built sufficient buffers – monetary, reserves, and fiscal – if there are any global headwinds.

The CBSL Governor also explained that there is a lot of global uncertainty. However, Sri Lanka would not have a lot of impact as the country is not exposed to raise funds from the market. However, he said if the world economy slows down, it will have a negative impact on the external sector.

‘Thus, building buffers are important to make any adjustments if need arises. Before the economic crisis, we did not have any buffers and today, we are in a better position,’ he added.

As per the CBSL, headline inflation based on the Colombo Consumer Price Index (CCPI) continued to accelerate in October for the third consecutive month. Inflation is expected to rise more gradually than projected earlier and move towards the target by the second half of 2026. Core inflation is also expected to accelerate at a modest pace, as demand in the economy gradually strengthens. Medium-term inflation expectations remain well anchored around the inflation target.

‘Inflation is expected to rise more gradually than previously forecast but should reach the CBSL’s 5% target by the second half of 2026,’ Dr. Weerasinghe added.

Leading economic indicators suggest a continuation of the growth momentum.

Credit to the private sector has recorded a notable and broad-based expansion thus far in 2025, supported by the low-interest-rate environment.

Dr. Weerasinghe said the CBSL is monitoring the credit to GDP by the private sector. ‘Although it has expanded, it is still below average compared to 2016-2018 level. So, overall, we do not see any unnecessary growth or an economic overheating,’ he added.

The Governor also said the fiscal performance has been much better historically, noting that fiscal stability is always a positive factor for overall economic stabilisation.

‘This also reflects a recovery in economic activity as well as the realisation of pent-up demand for vehicle imports. This credit momentum is likely to continue in the period ahead,’ the CBSL said.

Imports have risen in recent months, contributing to a widening trade deficit. However, strong inflows from tourism and workers’ remittances have cushioned the impact on the external current account.

Gross official reserves were maintained above $ 6 billion thus far in 2025, supported by net foreign exchange purchases by the CBSL.

The CBSL expects additional inflows in December 2025, including receipts from the multilateral organisations.

The recent depreciation pressure on the rupee has subsided with the improvement in foreign exchange liquidity.

‘The CBSL will continue to monitor and assess incoming data on evolving domestic and global economic conditions and emerging risks. The Board remains prepared to implement appropriate policy measures to ensure that inflation stabilises around the target, while supporting the economy to reach its potential,’ it added.

Budget 2026 lays a foundation for SME growth, but its success will depend on implementation speed, transparency, and a shift from debt-driven support to capability-building and global integration. For SMEs, this Budget offers hope and opportunity-but turning policy into tangible outcomes requires collaborative effort between Government, financial institutions, and private sector stakeholders

Introduction

The 2026 National Budget, presented by President Anura Kumara Dissanayake, comes at a pivotal moment for Sri Lanka’s economy. Following two years of IMF-led reforms and a steady recovery trajectory, the Government has set ambitious goals: sustained GDP growth above 7%, fiscal consolidation, and integration into global value chains. But for the backbone of the economy-Small and Medium Enterprises (SMEs)-the question remains: Has the Budget 2026 provided sufficient support to drive resilience and growth?

Why SMEs matter

SMEs contribute over 52% of Sri Lanka’s GDP and play a critical role in employment generation. Their ability to thrive determines the pace of economic recovery and inclusive growth. However, SMEs have faced severe challenges since the 2022 crisis-tight credit conditions, high inflation, and limited market access. Budget 2026 needed to address these structural issues while fostering competitiveness.

President and Finance Minister Anura Kumara Dissanayake

Key SME-focused measures in Budget 2026

1. Lower investment threshold for tax incentives

The qualifying investment threshold for enhanced capital allowances has been reduced from $ 3 million

to $ 250,000, making tax incentives accessible to SMEs. Enhanced capital allowances of 100% (or 200% for Northern Province) can now be claimed for investments in fixed assets, in addition to standard capital allowances under the Inland Revenue Act.

2. Concessionary loan schemes

The Government has introduced loan facilities through local banks at concessional interest rates, offering:

Up to Rs. 25 million for successful businesses

Rs. 15 million for enterprises facing hardship

Up to Rs. 50 million for others

Additional schemes target youth entrepreneurship, women-led businesses, and microfinance initiatives, signaling a strong push for inclusive SME financing.

Budget 2026 allocates:

Rs. 7,700 million for the SME Development Loan Scheme

Rs. 6,200 million for Agricultural Value Chain Development

Rs. 15,000 million for the Pledge Loan Scheme for paddy mill owners

Rs. 800 million for the Sustainable Farmers’ Loan Fund

Rs. 1,700 million for the New Comprehensive Rural Credit Scheme (NCRCS), offering agricultural loans up to Rs. 3 million at 5% interest

These measures aim to ease liquidity constraints and foster inclusive growth, particularly in rural and agricultural sectors.

3. Institutional reforms for SME development

Budget 2026 proposes consolidating SME support agencies-IDB, NEDA, and SMED-under the Industrial Development Board to streamline services, reduce duplication, and improve efficiency in delivering technology, market access, and advisory support.

4. Digitalisation and market access

The Government plans to establish Startup Ecosystems, IT zones, and data centers, alongside a Digital Single Window for investment approvals. Export-oriented SMEs will benefit from the National Export Development Plan (2025-2029) and the introduction of a Trade National Single Window (TNSW) to simplify export documentation and reduce administrative bottlenecks.

Budget 2026 also emphasizes developing auxiliary zones linked to existing investment zones, creating opportunities for SMEs to integrate into industrial value chains, access shared infrastructure, and reduce operational costs.

Challenges and missed opportunities

Despite positive steps, concerns remain:

nIndirect Tax Burden: Lower VAT and SSCL thresholds (Rs. 36 million) will bring more SMEs into the tax net, increasing compliance costs.

nAccess to Credit: Effective implementation and timely disbursement of loans will be critical.

nExport Competitiveness: Tariff reforms and para-tariff phase-outs lack clear timelines, creating uncertainty for SMEs engaged in trade.

Lower inflation and interest rates should ease operating costs and improve credit access. However, broadening the VAT base without reducing the VAT rate adds pressure on SMEs and consumers. Given VAT’s regressive nature, a rate reduction would have provided meaningful relief.

Budget 2026 demonstrates intent to empower SMEs through lower investment thresholds, concessional financing, institutional reforms, and digitisation initiatives. However, success hinges on swift execution, ease of access, and complementary support in skills development and infrastructure

Global best practices for SME support

While concessional loans and tax incentives are important, global best practices show that SME development requires more than financial assistance. Countries such as Singapore and South Korea have

successfully empowered SMEs by providing:

nAccess to technical and managerial skills

nMentorship programs and international market exposure

nSupport for obtaining globally recognized certifications

In Singapore, programs like the Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA) help businesses upgrade capabilities and expand internationally. SkillsFuture equips SME owners and employees with technical and business management skills, while certification support enables compliance with foreign market standards.

South Korea’s Ministry of SMEs and Startups (MSS) offers structured programs for technology development, global partnerships, and legal compliance. Initiatives such as the Global Corporate Collaboration Program and Startup Legal Support Program assist SMEs in forming international alliances and navigating regulatory requirements. These measures help SMEs build sustainable business models, enhance competitiveness, and reduce dependency on debt.

The way forward

Budget 2026 demonstrates intent to empower SMEs through lower investment thresholds, concessional financing, institutional reforms, and digitisation initiatives. However, success hinges on swift execution, ease of access, and complementary support in skills development and infrastructure.

The Government should actively facilitate:

nInternational market access: Promote Sri Lankan SMEs globally and assist with trade fair participation.

n Skill development: Offer training in technical, managerial, and digital skills.

nCertification assistance: Provide guidance and subsidies for international certifications.

nInnovation and technology adoption: Encourage digital transformation and sustainable practices.

Such measures will strengthen SMEs and position Sri Lanka as a dynamic player in the global economy.

Conclusion

Budget 2026 lays a foundation for SME growth, but its success will depend on implementation speed, transparency, and a shift from debt-driven support to capability-building and global integration. For SMEs, this Budget offers hope and opportunity-but turning policy into tangible outcomes requires collaborative effort between Government, financial institutions, and private sector stakeholders.

Sri Lanka’s total export earnings have surpassed US$14.4 billion in the first ten months of 2025, marking the highest level recorded for the period, Export Development Board (EDB) Chairman Mangala Wijesinghe announced.

Opposition Leader Sajith Premadasa yesterday unveiled a comprehensive national roadmap to transform Sri Lanka into a $ 25-30 billion digital economy by 2030, stressing that the country must urgently modernise its digital infrastructure, strengthen governance, and create high-value employment for its youth.

Speaking in Parliament, Sajith Premadasa said Sri Lanka has the potential to become a regional technology hub if it invests decisively in telecommunications upgrades, data centres, cloud infrastructure, artificial intelligence education and large-scale IT talent development.

He emphasised the need to expand 5G nationwide, incentivise fibre connectivity, partner with global cloud providers and establish tech investment zones across all 25 districts.

He called for a fully digitalised public service, including a national digital identity, digital signatures, inter-agency data platforms and 100% online access to government services such as licences, land registry work, court filings and permits.

Digital payment adoption, interoperable QR systems and fintech innovation were highlighted as essential to building a cashless economy and reducing corruption.

Sajith Premadasa also proposed establishing a national start-up fund, promoting AI, fintech, agri-tech and health-tech ventures, offering tech visas to global experts, and boosting IT-BPM exports from $ 1.8 billion to $ 10 billion by 2030.

He underscored the importance of digitalising traditional sectors like agriculture, tourism and fisheries, improving cybersecurity, updating outdated laws and expanding digital literacy nationwide.

Sajith Premadasa said the SJB stands ready to lead Sri Lanka into a modern digital era, adding, ‘It’s time to walk the talk and make our digital dream a reality.

President Anura Kumara Dissanayake will attend the Sri Lanka Economic and Investment Summit 2025 on 2 December, during which he will join The Ceylon Chamber of Commerce Vice Chairperson Bingumal Thewarathanthri for an on-stage conversation aligned with the Summit’s theme – ‘Gateway to Growth – Asia’s Emerging Opportunity.’

The conversation is expected to give participants a clearer sense of how the Government views the next phase of economic rebuilding, the pressures shaping policy choices, and the path the country hopes to take to restore confidence.

It offers businesses and investors the opportunity to hear the President explain the thinking behind policy choices at a moment when investors are looking for clear signals and predictability.

Conceptualised as a Fireside Chat, dialogues such as this play an important role because Sri Lanka’s recovery depends on rebuilding trust.

The dialogue aims to offer a window into how the country intends to move forward on investment, trade, and overall economic revival. Bringing Government leaders, international delegates, and the private sector into the same room helps close the gap between policy intention and what businesses experience on the ground.

The Sri Lanka Economic and Investment Summit 2025, organised by The Ceylon Chamber of Commerce, will take place on 2-3 December at Shangri-La Hotel Colombo. This year’s edition has already drawn more than 850 participants and over 100 international delegates, a turnout that reflects growing interest in Sri Lanka’s direction.

KBSL Information Technologies, one of Sri Lanka’s longest-standing systems integrators and a member of the Agility Innovation Group, has appointed Pramukh Jayawardena as its new Chief Sales Officer (CSO).

This move reflects the company’s strategy to strengthen its leadership for a new phase of growth focused on technology excellence and customer value. “Pramukh brings the proven record and versatile depth we need to lead our sales organisation,” said KBSL COO and Acting CEO Aruna Dissanayake. “His ability to build high-performing teams and transform enterprise sales into consultative partnerships is essential. His expertise will be key in guiding our clients to make the best use of the strong application ecosystem we bring to the table on top of the next-generation green, intelligent, and cost-effective and secure infrastructure solutions to accelerate their innovation and deliver greater value.”

Jayawardena brings over 16 years of experience from the region’s top technology firms, with a record of building high-performing sales teams and driving business growth through innovation. His previous leadership roles include Millennium IT ESP, WSO2, Dialog Enterprise, H One, and Metropolitan Computers, covering enterprise technology and large-scale B2B transformation. Notably, he led sales for the SAARC region at WSO2, building partnerships and accelerating market growth. His background is noted for its versatility and depth, ranging from frontline sales to executing large-scale revenue strategies. He earned multiple awards recognising his performance and leadership impact. His journey reflects both depth and versatility, underscoring his ability to translate complex business challenges into achievable, customer-focused outcomes.

Jayawardena joins KBSL at a crucial time, as the company expands its focus on enterprise technology, cloud platforms, and digital transformation. His vision centers on translating business goals into tangible value for customers. In the short term, he plans to sharpen the sales function by optimising processes and focusing on measurable, data-driven decisions. His longer-term strategy emphasises sustainable, scalable growth that balances technology with human insight.

His strategic roadmap for KBSL emphasises five pillars of transformation: building a customer-centric culture, developing a strong partner ecosystem, investing in digital sales enablement, nurturing talent and leadership, and driving data-informed decision-making across the organisation.

“Sales is no longer about closing deals, it’s about solving problems,” Jayawardena explained. ‘Enterprises are looking for partners who understand their challenges and can connect innovation to measurable business results. That’s where KBSL can make the difference by combining our technical depth with a customer-first approach. We don’t just build relationships, we forge partnerships that empower our clients to achieve their most ambitious goals. Our vision is to be the trusted advisors and problem-solvers that our clients turn to first, every time,’ he said.

He believes enterprise technology sales must transform from a transactional process into a consultative partnership, where technology becomes a driver of customer outcomes. He added that technologies like AI, automation, cloud-native platforms, and advanced analytics will define the next phase of enterprise growth, and KBSL is positioned to help organisations harness these capabilities for transformation and resilience. Jayawardena is a Chartered Marketer (ACMA, CIM UK) and holds an MBA from Cardiff Metropolitan University (UK). His leadership philosophy, which centers on collaboration, curiosity, and accountability, complements his pragmatic, people-oriented style. These values align with KBSL’s mission to empower teams and customers alike to succeed in the digital age.

KBSL Information Technologies Ltd., is a leading force in Sri Lanka’s ICT landscape, delivering transformative solutions that power enterprise resilience and national infrastructure advancement. With over three decades of experience, KBSL specialises in integrated technology services spanning cloud architecture, data center modernisation, smart building systems, and managed IT operations.

Recognised for its strategic approach to digital enablement and operational excellence, KBSL continues to strengthen its partner ecosystem with global technology leaders to deliver best-in-class solutions locally.

As Sri Lanka accelerates its digital journey, KBSL remains a trusted partner in shaping a secure, scalable, and future-ready ecosystem that enables organisations to innovate with confidence.

Young talent from Anuradhapura stamped their class at the recently concluded Prima Sunrise Bread Regional Golf Championship in Nuwara Eliya last weekend, showing a bright future for junior golf in Sri Lanka.

Leading the charge was Adithya Weerasinghe, originally from Anuradhapura and now representing Ananda College, who clinched the Boys’ Gold Division title. His steady progress and growing consistency have already placed him on the pathway to earning world ranking points, signalling immense potential at international level.

In the Silver Division, Lavidu Premarathna continued the region’s dominance with an impressive victory, while Vihara Herath delivered a commanding performance to secure the Girls’ Bronze segment title.

One of the most exciting prospects is Abhiman Abeywardhana, who triumphed in the Copper Division, and previously won the Rukmini Kodagoda Trophy while finishing runner-up at the Prima Regional event. His rapid rise suggests a promising future on the big stage.

Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam urged the industry to pivot toward higher-value tourism, warning that the country’s current yield per tourist remains far below its potential despite rising arrivals and strong seasonal performance.

Speaking at the Tourist Hotels Association of Sri Lanka (THASL) Annual General Meeting on Monday, Hewawasam said that while the country is on track to surpass key tourism milestones, the average revenue per tourist is still significantly lower compared to competing destinations across Asia.

He noted that most travellers visiting Sri Lanka spend around $ 300 per day, whereas competing destinations such as Malaysia, Indonesia, and island destinations across Southeast Asia report much higher yields.

‘Our challenge is not arrivals, its value. Countries around us are earning far more per visitor. We cannot sustain growth if we continue to attract high volume but low value,’ he said.

He also highlighted that Sri Lanka still struggles with seasonality, experiencing five strong months and seven weaker months.

‘We need year-round appeal. Without that, we cannot meet revenue targets even if arrivals rise,’ he added.

Hewawasam also revealed that Sri Lanka was to lose significant visitor numbers, with airlines cancelling around 45 flights weekly, a trend expected to continue if bottlenecks remain unresolved.

However, he said quick interventions by the private sector and relevant authorities have prevented the loss of 32,000 to 50,000 tourists in recent months amidst strained infrastructure during peak months.

Noting that Sri Lanka already crossed 2 million tourists for 2025, Hewawasam cautioned that volumes alone will not fix structural issues.

He stressed that Sri Lanka needs a minimum of 180,000-200,000 arrivals per month consistently to sustain industry-wide profitability, but more importantly, the country must focus on attracting travellers with higher spending power.

Accommodation bottleneck and domestic aviation constraints

Hewawasam acknowledged a severe accommodation imbalance, noting that Colombo offers more than 11,000 rooms, but many key tourism regions lack capacity.

‘There is a chicken and egg situation; hotels are reluctant to invest because air connectivity is low and airlines do not increase frequencies because room capacity is limited,’ he said.

He said SLTDA has released 3,000 acres for tourism investment, receiving over 130 proposals, with approvals for several expected by year-end. ‘This is aimed at unlocking accommodation supply in key regions,’ he added.

The Chairman stressed that Sri Lanka must build more entertainment, nightlife, events and year-round activities to compete for long-stay and high-spend travellers.

‘Tourists want experiences; entertainment, concerts, curated events and nightlife. We cannot rely only on beaches and heritage. The modern traveller spends on experiences, not just rooms,’ he said.

The Chairman said the destination urgently needs a unified nation-branding strategy to secure sustained growth.

He asserted that Sri Lanka does not simply need more advertising, but a comprehensive, globally aligned brand-positioning campaign.

‘We do a lot of marketing, what we lack is brand positioning,’ he said, predicting that without a strong country brand, Sri Lanka will struggle to compete in a region where destinations such as Japan, Indonesia, and Malaysia are aggressively repositioning themselves.

‘A dedicated marketing and nation-branding unit is being established with support from the World Bank, with a Cabinet paper already submitted. Once approved, it is expected to bypass bureaucratic delays and implement long-awaited global campaigns,’ he stressed.

He said Tourism Development Levy (TDL) revenue remains essential to funding major branding and development initiatives.

Hewawasam said Sri Lanka is simultaneously battling over-tourism during peak periods, particularly in December.

‘Data shows Colombo alone has around 16,000 rooms, but large areas with high tourism potential still lack sufficient accommodation. In many districts, hotel density is less than one property per square kilometre, with some zones offering only 800 rooms in total,’ he pointed out.

He said this imbalance and overcrowding in established hubs and lack of development in emerging ones, stems largely from poor accessibility.

On the aviation front, Hewawasam noted that Sri Lanka needs more domestic routes, more frequencies, and lower seat costs to support regional dispersal of tourists.

He also called for stronger coordination between SLTDA, THASL, and provincial stakeholders to expand visitor experiences nationwide.

‘We cannot grow tourism in isolation. The associations, hotel sector, airlines, and regulators must work together. This is the only way to transform Sri Lanka into a high-value destination,’ Hewawasam said.

Another COP has ended, and Bélm in Brazil is recorded for posterity. However, as they always say at the end, it was another Conference of the Parties that concluded with a watered-down agreement. Considering this is the 30th such meeting happening across the world, the amount of hot air and gaseous emissions released to realise these endings begs scrutiny on the sincerity of purpose. When the results are not positive and quite disheartening, it is reasonable when some pose the question – Why are we spending $1 billion plus and flying 50,000 people around the world just to talk about stopping emissions? The COP in Brazil was all about the climate crisis, and everyone knew why they were converging to this place next to the Amazon river. Ending fossil fuels and the Amazon rain forest were very much under discussion, yet they did not make it to the final agreement specifics only semantics and some promises on ensuring finances.

One thing is sure: there is a need for another COP to agree on proposals made here. The show will go on. However, it must be stated that the emphasis for urgent action that is continuously raised by the UN Secretary General is not getting materialised. In the climate front, with the UN Secretary General decrying the current planetary situation with a significant number of serious adjectives, the new insights ask for urgent actions and urgent repurposing of whatever we do. However, the same urgency is not felt by the global leadership, where there is much more disunity than unity, craving for someone’s resources and unsustainable consumption.

Facts and fiction

Occasionally, it is interesting to wander around between facts and fiction, as new insights are possible when you place yourself outside the box. Equating Colombo to Venice is a discourse in that direction. An analogy to get the sense of urgency to sink in and get all Nero’s to come to their senses. Well, an important part of the emerging Colombo is the Port City, which was reclaimed from the sea to grow and shine. It is bewildering to the mind to think what we were unable to do with 65550 sq km all alone would be outdone by a mere 2.69 sq. km!? The spanner in the work here is the question: did the Indian Ocean only give a temporary lease, only to claim it back with much more interest?!

From Dondrahead (Dewundara Thuduwa) you can look south and sail south as well. The next landmass is Antarctica – the World’s largest desert and the only uninhabited continent. Something is happening there which should be noticed by us. There is also an option for countries like Sri Lanka, where we have the right to set up a research station, as we have the right as a country. The issue, however, is not about setting the research station but the disappearance of the continent.

From Dondrahead (Dewundara Thuduwa) you can look south and sail south as well. The next landmass is Antarctica – the World’s largest desert and the only uninhabited continent. Something is happening there which should be noticed by us. There is also an option for countries like Sri Lanka, where we have the right to set up a research station, as we have the right as a country. The issue, however, is not about setting the research station but the disappearance of the continent

Disappearing glaciers

Currently, the Thwaite glacier of Antarctica is breaking and melting. Thwaite glacier is the world’s largest glacier. A real cause for concern, but not something we can rush out and restore. This mass of ice, once melted, is expected to contribute to a global sea level rise, and that is where the problem lies. We already speak of rising sea levels, land inundation, saltwater intrusion etc. This additional burden is significant, and the research says that this is likely to happen within a decade. Current data indicates that there is a 4.4 mm annual sea level rise taking place. On top of this average, a global sea level rise of 65 cm is possible with the disappearance of the Thwaite glacier. If the West Antarctic Ice Sheet is to collapse and melt in its entirety, the global sea level will rise by 3.3 m. The latter scenario can extend to centuries.

Disappearing glaciers has been in the news with the threat that the event poses. Glaciers in the Himalayas melting away and reducing will mean the most precious input that sustains rivers, which feed India, will vanish. Snow caps melting away can pose water supply issues to a number of cities worldwide, and Santiago, California are examples. Al Gore was quite specific in pointing to this aspect of shrinking glaciers in his Oscar-winning documentary The Inconvenient Truth. With Thwaite melting away in the West Antarctic, about 15000 km away, we are also thrust into the front line of an emerging environmental emergency.

Bringing attention to glaciers and primarily due to this issue of Thwaite melting, the world decided to have a World Glacier Day this year on 21 March. With Piduruthalagala, Sri Pada etc, entertaining no glaciers, we must have decided to give this global day celebration a miss and miss the point of our own connectivity to a glacier elsewhere. Primarily, the rising global temperatures are being identified for the glacier decline. Deposition of carbon particles from unsound human practices such as burning of waste and thermal power plants, entering global circulation patterns and getting deposited on polar ice are also considered to accelerate solar absorption – being black particles! – and accelerate melting.

Issue of sea level rise There is also a school of thought on the rapid melting of Thwaite due to the presence of a geological ‘hot spot’, which is a massive 620,000 sq mile area. This is due to apparently more than hundred active volcanoes underneath. Whether it is climate change or volcanic heat flux, the ice mass in Antarctica is facing a double whammy, and melting is the net result. This melting at scale manifests as sea level rise. It is now an abnormal ice sheet melting with respect to the Thwaite glacier is an established fact. Melting of the Thwaite is expected to yield two feet of sea level rise. With the glacier gone, there are a few more glaciers and the West Antarctic ice sheet that will rapidly disappear. This is expected to add a further 8 feet of sea level rise. Ten feet overall. There are many, including NASA, who are carefully watching this part of Antarctica 12000 km away from Dondrahead and how the sea level is changing. Understanding scenarios supports decision making, and this scenario has been studied by Chandanie with her team, one of our GIS experts with CEA’s R and D division. Due to resource limitations, matching developments to the Sri Lankan coastline is not quite easy. Yet some of the preliminary findings are shown here to open the dialog that we lack yet are important. Venice in the Indian Ocean is my clickbait to engage. Two hot spots in Sri Lanka are evident even with the limited resolutions available.

We are currently experiencing the issue of sea level rise via sea water intrusion in rivers, and especially where we are having water intakes for drinking and industrial uses. Salinity barriers are being discussed while issues have surfaced with the Kelani, Kalu and Nilwala rivers. Salt-tolerant agriculture is another topic that the researchers are talking about, but decision makers are completely unaware of.

State of health of Antarctica is looking quite shaky. The disappearance of a good part of the continent is not just about redrawing the contours and maps. The consequence of that event dynamically happening today as we read this, will ask us to redraw our coastlines too. Today, Thwaite has been given a nickname – Doomsday Glacier. I must state that science is much more optimistic here, but sans scientific decision making, that state of affairs may be exactly where we are headed for.