Category: Daily Financial Times

The Ceylon Electricity Board (CEB) has recorded a near-elimination of profit for the quarter ended 30 September, with earnings, margins, and operating performance deteriorating year-on-year (YoY) and quarter-on-quarter (QoQ) amid rising generation costs, tariff pressures, and weakening cash flows.

Interim financial statements released this week also showed the utility slipping into a Rs. 9 billion loss for the nine months to end-September, compared to a Rs. 152 billion profit in the same period of 2024.

Revenue fell 30% YoY to Rs. 321.7 billion, while cost of sales rose 1% to Rs. 322.9 billion, resulting in a gross loss of Rs. 1.2 billion compared to a gross profit of Rs. 129.2 billion a year ago.

Administrative expenses rose 20% to Rs. 10.3 billion, while net finance costs fell by half to Rs. 11.4 billion. Loss before tax for the period was Rs. 7.3 billion, compared to a profit of Rs. 153.7 billion a year earlier.

Retained losses stood at Rs. 361.5 billion on a balance sheet with Rs. 1.3 trillion in total assets. The notes to the financial statements said restructuring was underway in line with the Sri Lanka Electricity (Amendment) Act, No. 15 of 2025.

The CEB’s Profit After Tax (PAT) for the September quarter fell 98% YoY to Rs. 466.5 million from Rs. 29 billion a year earlier. On a QoQ basis, profit dropped 94% from Rs. 7.4 billion in the June quarter.

Revenue for the September quarter was Rs. 120 billion, down 5% year-on-year but up 15.8% quarter-on-quarter. However, cost of sales rose 13% year-on-year and 27.7% quarter-on-quarter to Rs. 117.8 billion.

Gross profit fell to Rs. 2.4 billion, an 89% decline from a year earlier and a 79% drop from the June quarter. Operating profit declined 94% year-on-year to Rs. 2.2 billion and fell 82% quarter-on-quarter, reflecting rising administrative costs and shrinking other income.

The September quarter marked the continuation and deepening of the deterioration seen from early 2025.

In the quarter ended 31 March 2025, the CEB posted a loss after tax of Rs. 16.93 billion, a 119.2% decline from the Rs. 88.3 billion profit a year earlier.

Revenue fell 45.5% to Rs. 98 billion, while cost of sales rose 2.6% to Rs. 112.9 billion, generating a gross loss of Rs. 15 billion compared to a gross profit of Rs. 69.7 billion a year ago. Operating profit fell 114.4% to a loss of Rs. 14 billion owing to a sharp reduction in other income and valuation gains.

In the June 2025 quarter, profit after tax fell 78% year-on-year to Rs. 7.4 billion. Revenue declined 31% to Rs. 103.6 billion, while cost of sales fell 18% to Rs. 92.2 billion, allowing a gross profit of Rs. 11.4 billion, down 69% from Rs. 37 billion a year ago.

Operating profit fell 70% to Rs. 12 billion, reflecting continued pressure on non-operating income streams.

Cost of sales includes the cost of generation, operating power plants and purchasing power from independent producers, but excludes salaries, transmission overheads, administration, interest and depreciation of the grid.

According to the Finance Ministry’s Mid-Year Fiscal Position Report 2025, CEB was the single largest drag on overall State-owned enterprise profitability in the first half of the year.

The utility recorded a Rs. 13.2 billion loss in the first six months of 2025 compared to a Rs. 119.2 billion profit a year earlier. Electricity sales revenue fell 38.8% to Rs. 192.6 billion despite a 4.3% increase in demand to 7,814 GWh.

The Treasury said the sharp contraction was driven by lower tariffs, with average sales revenue per unit falling to Rs. 24.64 per kWh from Rs. 41.97 a year earlier.

Direct generation costs declined 8.7% to Rs. 144.3 billion due to favourable hydrological conditions, though this was insufficient to offset the steep revenue fall. Trade payables rose to Rs. 52.6 billion by end-June, including Rs. 19.8 billion owed to independent power producers.

Two tariff revisions in 2025 resulted in a 20% tariff reduction in January and a 15% increase in June.

Meanwhile, the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025 established four Government-owned entities for generation, transmission, distribution and the national system operator as part of the CEB’s unbundling.

In October 2025, the IMF urged Sri Lanka to maintain momentum on energy-sector reforms under the Extended Fund Facility. Mission Chief Evan Papageorgiou said unbundling and cost-recovery tariffs were essential to prevent a return to losses that would burden taxpayers.

He said predictable tariff-setting creates conditions for lower electricity prices over time and confirmed the IMF is evaluating the CEB’s latest tariff submission to the regulator, including the end-November benchmark on revising the tariff methodology.

The collapse in 2025 comes after two strong years driven by tariff adjustments.

According to CEB’s 2023 annual report, biannual tariff revisions lifted revenue 97% to Rs. 606.6 billion and helped return the utility to a Rs. 61.2 billion profit after a Rs. 298 billion loss in 2022.

The CEB remained profitable in 2024 with Rs. 148.6 billion in earnings even after tariff reductions of 21.9% in March and 22.5% in July, though monthly profits weakened in late 2024. Another 20% tariff reduction in January 2025 raised concerns over the continued cost-reflectivity of the pricing mechanism.

The sharp financial contraction seen across all three quarters of 2025, combined with the nine-month loss and declining margins, indicates that tariff reductions without corresponding reductions in generation cost have pushed the CEB back into structural stress.

The full-year outlook remains weak unless tariff policy, hydropower conditions or generation costs shift materially in the final quarter.

According to energy-sector analyst Dr. Vidhura Ralapanawe, (https://www.ft.lk/columns/Electricity-tariffs-Accounting-clawbacks-and-meddling-by-IMF/4-777070) part of the volatility seen in the CEB’s 2025 financials reflects weaknesses in how the tariff methodology and internal accounting practices have been applied.

The tariff framework is designed to be cost-reflective, with periodic claw backs that return excess revenue to consumers when actual costs fall below projections.

But delays in filing tariff requests, political interventions in previous revisions and inconsistencies in recognising claw backs in the CEB’s books have distorted both the strong profits reported in 2024 and the losses recorded in early 2025.

Dr. Ralapanawe notes that the Bulk Supply Transaction Account was introduced to improve transparency in cash flows between generation, transmission and distribution, yet it was set up out of alignment with the tariff cycle.

This created competing figures between the CEB, the regulator and the IMF over when automatic pricing adjustments should be triggered. These discrepancies have amplified concerns over the CEB’s short-term financial position despite the presence of a functioning cost-reflective framework.

He argues that the IMF’s recent emphasis on interim profit-and-loss outcomes overlooks the corrective nature of the tariff mechanism and its built-in adjustments for over- or under-recoveries.

The more significant issues, he says, lie in governance, financial management and the accuracy of data provided to policymakers and lenders.

Without improvements in these areas, Dr. Ralapanawe warns that the unbundling process and the move toward a more transparent, commercially operated power sector will continue to face setbacks regardless of tariff revisions or temporary shifts in generation costs.

The Western Province Entrepreneur Awards 2025 was held in grandeur on 19 November at the Lotus Hall, BMICH, marking the eighth consecutive year of this prestigious event. The National Chamber of Commerce of Sri Lanka (NCCSL) and the National Enterprise Development Authority (NEDA) jointly organised this annual award scheme to categorise, reward, and motivate Sri Lanka’s domestic entrepreneurs.

This initiative aims to recognise outstanding accomplishments in the Western Province business community, encouraging them to elevate their business practices and achieve excellence in entrepreneurship across the Micro, Small, Medium, and Large sectors.

The ceremony was graced by the esteemed presence of Industry and Entrepreneurship Development Minister Sunil Handunneththi, as the Chief Guest and Special Guests: NEDA Chairman and Director General Lakshman Abeysekera, and Industry and Entrepreneurship Development Ministry Additional Secretary – Enterprise Development Anoja Herath, Director Dhanuka Liyanagamage, NCCSL President Anura Warnakulasooriya, along with several senior officials from NEDA, NCCSL, and representatives from the Government institutions. The distinguished Panel of Judges were also present at the ceremony to recognise the winners.

The award criteria were designed to recognise outstanding entrepreneurs across various sectors including Industry/Manufacturing, Agriculture/Livestock/Fisheries, Hospitality/Tourism, and Other Services. A total of 12 thematic awards were presented, honouring best practices and excellence in diverse fields. There were 12 awards distributed throughout these 12 thematic areas, acknowledging the best practices. The following awards were presented: Best Environmentally Friendly Enterprise, Best Exporter, Best Productive Enterprise, Best Innovative Enterprise, Best Value-Added Enterprise, Best Energy Efficiency Enterprise, Best Entrepreneur Providing the Most Jobs for Females, Best Woman Entrepreneur, Best Youth Entrepreneur, Best Entrepreneur – with Special Abilities, Best Enterprise – Sustainable Business Practices, Best Entrepreneur – Financial Performance.

The top awards of the evening, ‘Entrepreneur Awards 2025 – Western Province,’ were presented as follows: 2nd Runner-up (Bronze Award) winner: Three Sinha Industries (Pvt) Ltd., 1st Runners-up (Silver Award) winner: TBS International (Pvt) Ltd. and Overall Winner (Gold Award) – The Best Entrepreneur of the Year 2025: Hayleys Fabric PLC. Additional notable awardees included: Sarath Enterprises, recognised as the Best Entrepreneur with Special Abilities, Luxman Metal Crushers Ltd. awarded as the Best Woman Entrepreneur, Infinity Green International Ltd. recognised as the Best Environmentally Friendly Enterprise.

Demonstrating remarkable growth from last year, the event presented 54 awards in total, including Merit, Runner-up, and Winner categories.

National Enterprise Development Authority (NEDA), was established as a Government Entity in 2006, is dedicated to promoting, supporting, encouraging, and facilitating enterprise development in Sri Lanka, with a strong emphasis on the Micro, Small, and Medium Enterprise (MSME) sector.

The National Chamber of Commerce of Sri Lanka, founded in 1948, has been at the forefront of providing essential services and assistance to businesses across the country. The organisation plays a pivotal role in promoting domestic and foreign trade, with a special focus on the development of Micro, Small, and Medium Enterprises.

The ‘Western Province Entrepreneurship Awards 2025’ ceremony celebrated the innovative spirit and dedication of entrepreneurs who have played a pivotal role in driving economic growth and development in the Western Province. The event highlighted the importance of entrepreneurship and recognised outstanding achievements in various business sectors.

The Colombo Masters delivered a remarkable comeback to secure the Silver Finals title at the IFCR Roar Sri Lanka 2025, defeating Thane Yodha by 90 runs in a commanding performance.

Their journey to the finals was a story of resilience, overcoming early setbacks to finish the tournament on a high.

Colombo Masters began their campaign with two consecutive losses against Boirvali Blues and Thane Maratha, raising early concerns about their form. Despite the defeats, the spotlight remained firmly on Muditha Hewawanitunga, who’s bowling mastery kept Colombo Masters competitive. Hewawanitunga produced standout spells-2 for 27 against Boirvali Blues, earning him a joint Man of the Match award, and 1 for 11 against Thane Maratha-establishing himself as the team’s most consistent performer in the early stages.

After stumbling in the opening matches, Colombo Masters rallied impressively, thanks to the collective efforts of Shezzard Nizar, Suwanji Madanayake, Samantha Lorensuhewa, and Sujan Rodrigo, who all played pivotal roles in the latter stages.

Their triumph in the Silver Finals stands as a testament to teamwork, determination, and strategic brilliance-an achievement Colombo Masters will remember with pride as they sign off from IFCR Roar Sri Lanka 2025 with silver glory.

The Colombo Masters’ journey at IFCR Roar Sri Lanka 2025 will be remembered as a story of grit and revival. Key contributions from Nizzar, Madanayake, Lorensuhewa, Rodrigo, and the consistently impressive Hewawanitunga propelled the team from early setbacks to silver glory.

Their Silver Final triumph stands as a testament to teamwork, composure under pressure, and strategic excellence.

n 1st match: Boirvali Blues vs Colombo Masters

Boirvali Blues – 184/7 (20 Overs) Mahesh Desai 35, Gunvant Jain 36, Raviraj Durai 36

Muditha Hewawanitunga 2/27 Colombo Masters – 84/9 (20 Overs) Nalin Jayasuriya 29, Lasantha Desilva 21 Mahesh Desai 3/9

n 2nd match: Thane Maratha vs Colombo Masters

Thane Maratha – 189/2 (20 Overs) Pradeep Kahirsagar 35, Sandesh Patange 35, Ranjit Deshmukth 38Muditha Hewawanitunga 1/11Colombo Masters – 131/8 (20 Overs) Shezzard Nizar 27, Gihan Shiromal 19 Ajit Jadhav 3/9

n 3rd match: Colombo Masters vs Coimbatore Rockers A

Colombo Masters – 188 (20 Overs) Suwanji Madanayake 35, Sujan Rodrigo 35

Ravikumar 3/22 Coimbatore Rockers A – 110 (16.5 Overs) Prabakumar 39, Dhandapani 17

Shezzard Nizar 3/3, Gihan Shiromal 3/21

n Silver Finals: Colombo Masters vs Thane Yodha

Colombo Masters – 165/7 (16 Overs) Shezzard Nizar 35, Samantha Lorensuhewa 37, Suwanji Madanayake 27Abey Kulkarni 2/28 Thane Yodha – 75/4 (16 Overs) Sid S 33*

Mahendra Attanayake 2/7

The Right to Information Commission (RTIC) has warned that chronic understaffing and ignored statutory safeguards are weakening Sri Lanka’s transparency framework, even as the Commission continues to be held as a global role-model disposing a high volume of appeals under severe operational constraints.

In a public statement issued this week, the RTIC drew attention to official Parliamentary data showing that it concluded 1,157 out of 1,306 appeals received between January and September 2025. This was achieved despite the Commission functioning without a Chair and one Commissioner for five months, and with only one legal officer and two legal assistants for much of the year.

The Commission said this performance underscores its continued ability to uphold Sri Lanka’s globally recognised RTI regime despite the lack of institutional support.

Sri Lanka is approaching the ten-year anniversary of the RTI Act in 2026. The law has been cited by multilateral agencies as a global best practice, including UNESCO’s 2020 global SDG report and the IMF’s 2023 Governance Diagnostic, which noted the RTIC’s contribution to building a culture of transparency among public authorities.However, the Commission said these gains are at risk due to persistent failures by successive Governments to implement core statutory safeguards. It also raised concerns regarding attempts to dilute the RTI Act as it would undermine Article 14A of the Constitution and reverse the transparency gains achieved since the law’s enactment.

The RTIC’s public statement is full is as follows:

‘Sri Lanka is nearing the ten year anniversary (2026) of enactment of the Right to Information Act, No 12 of 2016 (RTI Act), globally ranked among the best in the world which has enabled thousands of Sri Lankans to exercise their right to obtain information from State and non-State bodies.

The vigorous use of the RTI Act by the public with principles of public transparency emphasised by the Right to Information Commission of Sri Lanka (RTIC) has been affirmed by the appellate Courts.

In 2020, UNESCO’s global report presented to the UN-GA’s High Level Political Forum on Sustainable Development ( ‘From Promise to Practice…’) singled out Sri Lanka as a ‘best practice’ model, illustrating the release of information in key cases before the RTIC.

Among others, the World Bank has called upon the Government of Sri Lanka to ensure the ‘primacy of transparency’ and the International Monetary Fund (IMF) has acknowledged the measures taken by the RTIC to foster ‘an (embryonic) culture of transparency among public authorities’ (Governance Diagnostic Report, September 2023).

Despite these progressive developments, the RTIC expresses serious concern regarding the chronic understaffing of its Office. The RTI Act divides responsibilities on two entities, the RTIC with the primary responsibility of hearing appeals and the nodal agency, namely the Ministry assigned the subject of mass media which must ‘ensure the effective implementation of the Act,'(Section 2).

Under Section 41, the nodal agency issues RTI Regulations which must be placed before Parliament for approval. In contrast, Section 42 states that the Commission’s Rules on Fees and Appeals Procedure, published in the same gazette (ie; Gazette Extraordinary No 2004/66), are not legally required to be placed for Parliamentary approval. Two different procedures apply in each instance.

While the RTIC and the nodal agency must harmoniously work together to maximise the effectiveness of the Act, the RTIC has a particular duty to maintain its independence from Public Authorities which are summoned before it as parties to appeals. Specifically, the independent recruitment of staff and a dedicated Fund (Sections 13 (3) and 16) secures the financial independence of the Commission without which there is no functional independence.

It is therefore highly regrettable that these statutory safeguards have been ignored by successive Governments. No dedicated fund has been allowed to be operated. The RTIC has been functioning with a skeleton staff, one legal officer and two legal assistants (later increased to three) to handle an increasing case load of appeals.

Requests for additional legal staff and other essential cadre including approval to recruit mid-level positions such as information technology (IT) assistant have been ignored. In forwarding the RTIC’s requests for staff to the Ministry of Finance, which the RTIC is compelled to do through the nodal agency, the process has been inexplicably delayed, in one instance by eight months.

Further, the RTIC has repeatedly informed the Government of the need to allocate a separate line item in the National Budget in line with its budgetary allocation in 2017 which was thereafter taken away and the allocations placed under the nodal agency, undermining the RTIC’s financial and functional independence. This too has been ignored.

Additionally, serious damage has been done to the RTIC’s appeal function by misleading media reports on 11 November 2025 using a wrong English translation of a response sent in Sinhala by the Office of the RTIC on 15 October 2025 to the Ministry of Health and Mass Media regarding a Parliamentary question asked by Opposition MP Ajith P. Perera.

The RTIC is unaware as to the origin of the English translation on which these inaccurate media reports are commonly based.

On 15 October 2025 and in response to a routine parliamentary question asking for appeal statistics,, the Office of the RTIC under the hand of the Director General responded via the Ministry of Health and Mass Media that 308 appeals had been ‘adjourned’ out of 1306 appeals received by the Office of the RTIC during 1 January to 30 September 2025.

The RTIC has handed down final decisions and concluded appeals in 1157 appeals (out of 1306) up to 30 September 2025. Adjournment for justifiable reasons, including request of parties, legal complexity of the subject matter etc. are part of the normal hearing process of any tribunal. Reporting ‘adjourned’ appeals as ‘failing to attend to’ is a serious misrepresentation and a deliberate interference with the RTIC’s quasi-judicial appeal function.

Typically, adjourned appeals are either resolved during the remainder of the year or brought over to the next year to conclude hearings. For example, by 15 November 2025, the number of adjourned appeals had decreased to 244. Correspondingly, the number of appeals received by the Office of the RTIC had increased to 1538 and concluded appeals to 1304 There has been no ‘reduction’ in the number of appeals being filed.

The RTIC further clarifies that there has been no reduction of its fund allocation. As reported in the Hansard of 23 October 2025 in the answer to the said Parliamentary question, the budgetary allocations referred to therein are not the budgetary allocations of the RTIC which are publicly available on https://www.rticommission.lk/web/images/pdf/Budget/Annual-Budgetary-Allocation-and-Expenses.pdf

The RTIC exercised a Right of Reply in regard to such misleading news reports on 13 November 2025. However, the said newspapers have failed to publish that response up to this date violating the code of ethics for newspapers and necessitating a public Statement to be issued by the RTIC.

In conclusion, the RTIC emphasises that any attempt to amend Sri Lanka’s RTI Act in a manner that dilutes the nature of the information right will be to the detriment of citizens, will undermine Article 14A of the Constitution and constitute a grave setback to progressive gains made so far under the RTI regime’.

Change is the code word of this world. Everything is subject to change; our minds, the earth, the sky, our bodies, our friends, our enemies and of course information technology. Akin to the human space much has changed in space that is cyber and in this interview with Jesse Dingley, a 25-year-old British born AI engineer we attempt to look objectively at the phenomena that is AI.

Having taken a break last year to globe trot, Jesse is currently a backpacker who travels the globe exploring the peaks of mountains, flow of rivers and the un-describable beauty of the lived in knowledge of earth beings.

His favourite book so far is One Way Ticket by Rolf Oostra. Being amongst the first set of young mathematical wizards to join the Artificial Intelligence trigger at its infancy in 2022, in this interview he ponders on the great good that AI can give the world. He also frankly admits it could seriously limit and impact critical thinking if used in a manner where the human mind outsources all its responsibilities to AI. Below are excerpts of the discussion with Jesse Dingley carried out in Jaffna when he was travelling through.

Q: How do you like Jaffna?

A: It’s a very interesting place and different to the rest of Sri Lanka. I find it calm and ‘non touristy.’

Q: What are the countries have you been to so far?

A: China, India, Indonesia, Mongolia, Nepal, Japan, Thailand, Mongolia and now Sri Lanka.

Q: Will you return to being a full time AI engineer anytime soon?

A: I will be travelling for some time more and decide what I want to do.

Q: What was it like being an AI engineer?

A: Very interesting. I was amongst the first batch of those who enrolled into AI engineering. My passion is mathematics and in 2017 I chose to specialise in higher tech education that centred around AI. The realm of Artificial Intelligence is evolving with each day. What I learnt in 2022 when it was being launched to the world is now obsolete. So being an AI developer means you work on the backend of stuff involving coding/programming and requires very high focus. In the companies I worked for we can work from home or do the tasks from the office. There is flexibility. But I prefer to go to office about thrice a week as there are other AI programmers and we can meet and discuss what we are working on. Each programmer will handle a particular segment of responsibility. When all of those segments are put together we have a full picture of a particular backend program of AI.

Q: Could you describe what AI is?

A: It is tapping into existing gamut of information technology and developing accurate matches to find as vast a range information a human requires in perfect coherent order. Almost everything that we are now using is AI. For example Google Translator is AI. ChatGPT is AI. AI is currently being used in every sector and industry, including especially the medical industry to speed up diagnosis. For instance doctors can use AI for scanning X Rays where there will be a vast amount of comparative information on X Rays that can be tapped into and many other medical related info that doctors can work with easily. AI as a realm is propelling at breakneck speed. What I learnt at the very beginning in 2022 is now obsolete.

Q: Is there a flip side of AI?

A: Yes, as in all things. AI can be used for the greater good of humanity in many, many ways. However it can also be extremely dangerous if used without a clear understanding of what it represents.

Q: Please elaborate.

A: AI cannot replace human intelligence. AI is not a human. It is a great collation of information that seems to be miraculous and instant. Some youth are now using AI as if it was a human. For instance young people are using ChatGPT for issues like trauma, peer pressure and depression.

Q: Since much of the information in AI is accurate, can it not help mental health related issues somewhat?

A: AI can make mistakes. Its accuracy could be around 90%. The danger is when humans think of AI tools and programs as a human buddy and does everything it says without connecting to one’s human brain, intellect and deep knowing.

In one incident a young person committed suicide as a result because the tech induced responses were exactly what it was-high tech and informative-but not human.

Q: Can AI be positive?

A: Yes. AI is definitely changing the world positively and assisting humanity in many diverse ways hitherto unimaginable as long as the human being/s using it does not become its slave/s. I am interested in how AI is influencing the world of travel. But that should be covered in a separate discussion I think. AI and tools like ChatGPT can provide vast knowledge and if used with a proper foundation of critical thinking and coupled with independent knowledge acquiring, it can be amazing.

Q: What do you think is the end result of being a ‘slave’ to AI?

A: You stop using your own brain and lose your critical thinking ability. A study was done by the Massachusetts Institute of Technology in the US which used three sample groups; those who used ChatGPT and Google search engines for a designated essay writing, and a group who did not. The aim was to determine brain activity and the group that only used their own minds to generate the essay performed best. Ownership of the essay was low for ChatGPT users; since their brain was not really associated with the long haul of finding the required info, investment of time that would make them remember the details. One of the symptoms of over use of AI tools is you can develop very short attention span.

Q: As a person who develops these stuff, how do you remind yourself that you are human?

A: Travelling.

Q: Is the earth out there-the mountains, the valleys, rivers, oceans, people, colours, music, art-everything of Natural Intelligence of the earth very different from the coding, tech, and AI world?

A: Yes.

Q: Which do you like most?

A: I like both worlds. I hold the hope that AI can be very good for this world, provided it is used with prudence and not as a form of replacing the human mind.

Q: Can you not create something on your own linked to travel or something you like very much?

A: I can. I will decide later what I will do. Currently I do travel with my computer and I am in sync with the tech world everywhere I go.

Q: Are your parents into technology?

A: My father is a musician and he uses tech only for his music development.

Q: Do you read books?

A: Not really. I am trying to focus on book reading but keeping attention for so long is difficult.

Q: But as an AI engineer you have to keep your focus for a long time. Reading a big book should not be hard for you!

A: No it is not. It is just that I am not used to it so much. But I recently read the travel book by a most unique human mind, an engineer, Rolf Oostra who wrote One Way Ticket.

Q: Do you think AI will eliminate printed books and libraries?

A: No. I think books and libraries will always be there.

Q: And do you think the ‘human brain’ as in Natural Intelligence will be a super expensive rarity in the time to come?

A: Yes, I should think so!!

As Sri Lanka accelerates its transition toward a greener and more resilient economy, Aberdeen Holdings, a diversified conglomerate operating across more than eight industries, has reaffirmed its commitment to sustainability by achieving Greenhouse Gas (GHG) Verification Certification under the ISO 14064-1:2018 standard.

This certification represents a key milestone in the Group’s sustainability journey, underscoring its dedication to measuring, managing, and transparently reporting greenhouse gas emissions in accordance with international best practices. By embedding data-driven accountability and transparency into its operations, Aberdeen Holdings continues to translate its sustainability ambitions into measurable climate action.

Sustainability is at the heart of the Group’s diverse portfolio, spanning energy and eco-solutions, logistics and packaging, agri and commodities, healthcare and wellness, and aviation, encompassing over 20 subsidiaries. Entities such as Ex-Pack Corrugated Cartons PLC, Hienergy Services, and Neptune Recyclers are driving innovation in renewable energy, carbon-neutral manufacturing, and circular economy solutions.

The GHG Verification Certification not only strengthens Aberdeen Holdings’ contribution to the United Nations Sustainable Development Goals (SDGs) but also reinforces its role in building a greener, more resilient Sri Lanka. This achievement marks not an endpoint, but a continuation of the Group’s long-term vision, to create meaningful impact through sustainable practices, balancing business growth with environmental responsibility.

Over 800 officials from Government and semi-Government institutions in Sri Lanka took part in capacity development programs in the People’s Republic of China this year, and a reception to honour the returning participants was held on Thursday at the Moonwalk Ballroom of the Lotus Tower.

The ceremony, jointly organised by the Chinese Embassy in Sri Lanka and the China Aid Training Alumni Association, brought together a distinguished gathering, including Chinese Ambassador Xi Jiahong and First Lady Jin Qiang. Labour Minister and Finance Deputy Minister Dr. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suryapperuma, and a large number of senior officials also attended the event.

Held under the theme ‘Global Governance Initiatives’, the reception featured a keynote address by Ambassador Xi Jiahong, who emphasised China’s long-standing commitment to supporting Sri Lanka’s development efforts. Dr. Fernando and the President of the China Aid Training Alumni Association Wimala Gunaratne, delivered remarks on behalf of the Government of Sri Lanka.

Speakers underscored the decades-long cooperation between the two countries and highlighted the growing importance of strengthening these ties in areas of training, knowledge sharing and institutional development.

They also stressed that enhancing Sri Lanka’s human capital through international capacity-building programs is vital as the country advances its economic recovery and reform agenda.

Officials who had undergone training in fields such as public administration, port management, modern agriculture, and digital technology shared insights on how their newly acquired skills are being applied to support national development initiatives.

The China Aid Training Alumni Association comprising Sri Lankan public sector officers who have completed training in China was recognised as a valuable platform for transforming these experiences into practical contributions for the country.

Tourism is one of Sri Lanka’s greatest assets, and one of its most delicate. It remains the fastest and most direct mechanism for transferring wealth from global markets into local hands, a rare sector where economic, social, and environmental benefits can converge if managed wisely. Yet it is also acutely vulnerable to shocks, overdevelopment, and poor governance. The challenge before us is not whether to grow but how to grow, and, crucially, who we invite to the party.

Tourism has often been described as the fastest transfer of wealth from rich to poor. Unlike exports, remittances, or foreign investment, it functions through countless small transactions between travellers and local providers of food, accommodation, transport, and experiences. But this apparent simplicity hides a complex truth: not all tourism is created equal. Every tourist dollar leaks, some to airlines, global booking platforms, foreign travel agencies, and international hotel chains. While some of this is inevitable, what matters (and must be measured) is the proportion that stays in the country, circulating among guides, small hotels and restaurants, and communities. That retention, known as ‘leakage,’ can vary from as little as 10% in mass-market, all-inclusive models to more than 70% in independently organised travel where visitors spend locally.

The real question for policymakers is therefore not how many people come, but which types of travellers they are, where they go, and how their spending behaviour ripples through the economy. The independently minded traveller, whether a budget or an affluent experiential guest, typically generates stronger local linkages, more authentic interactions, and lower environmental pressure than large-scale, volume-driven tourism. This is well known.

True impact investment

In other words, true impact investment in tourism begins with an understanding of the forces that make a destination authentic. It means targeting niches while protecting what is rare and different, but also refusing complacency about the foundations, the public goods that underpin every visitor experience. Environmental systems for waste and water management, access infrastructure that links small communities to visitor flows, congestion control in heritage sites and national parks, guided financing for small made-in-Sri Lanka enterprises, sustainability principles and practices, and the amenities that make travel safe and pleasurable are the true foundations of value. A single dollar spent on signage or sanitation can unlock thousands in community earnings. Neglect them, and the system collapses under its own success, as we have seen in overcrowded parks and unregulated coastal towns, as well as in other parts of the world.

The next step is to redesign the operating system. Sri Lanka’s tourism architecture is still fragmented, hierarchical, and divided into public and private silos that struggle to collaborate effectively. What the country needs now are stewardship organisations, professional, accountable, and empowered multidisciplinary bodies with clear mandates, expert teams, and predictable budgets. These should not become yet another committee but living instruments of stewardship, helping coordinate and plan for the maintenance of shared assets such as trails, key beaches, forts, archaeological sites, and parks; incubating small enterprises; organising events and festivals; conducting research; proposing public works; telling their story; contributing to the collective promotion of the national tourism mosaic; and channelling both public and donor funds into local initiatives.

Integrated stewardship frameworks

Rather than creating a new layer of fragmented entities, the idea is to evolve toward integrated stewardship frameworks, adaptive in scale and scope, capable of addressing both place-based and thematic priorities. A single stewardship body, for instance, might oversee a defined region such as the Tea Country while also nurturing cross-cutting themes like nature and wildlife, soft adventure, or agro-tourism. What matters is not the administrative boundary, but the shared capacity to coordinate effectively across disciplines and connect public, private, and community interests around a common vision.

In this model, the Government provides legitimacy, coordination, public works and predictable funding; the private sector contributes strategic direction, professionalism, agility, and global exposure as well as capital through memberships, partnerships and sponsorships schemes; and communities offer authenticity, conservation, and deep connection to place. Together, they form the backbone of a collaborative and regenerative tourism model, a living framework of partnership capable of finally bridging Sri Lanka’s long-standing divides between policy, practice, and place.

Being selective about capital is equally vital. Sri Lanka should welcome the small and mid-scale investors who bring purpose, creativity, and care, people who restore heritage properties, regenerate tea, cinnamon, or rubber estates, invest in arts and crafts, open specialist guiding companies that cater to particular niches or teach foreign languages to industry professionals, or entrepreneurs who create new experiences rooted in place. These are the investors who settle, employ locals, and become long-term ambassadors for the country.

Many within the industry agree that we must resist the lure of mega-projects that promise hundreds of rooms and jobs but deliver little beyond environmental and social stress and economic leakage. The goal is not simply to attract money but to attract the right kind of money, to be clear about the outcomes we want, which is sustainable growth.

Destination marketing

Marketing must also evolve. A niche-led product strategy requires precision communication, not mass broadcasting. Instead of showing the same beaches and temples to everyone, Sri Lanka’s message should be tailored to the motivations of distinct traveller communities, divers, hikers, wellness practitioners, architects, birders, and art lovers. Influencers should be selected for authenticity and thematic relevance, not follower counts, and campaigns should highlight stories of purpose and creativity rather than the old clichés. With digital tools, visa incentives (and deterrents), strategic collaborations with specialised distributors, and partnerships with niche journalists, events, and trade shows, we can design journeys that are longer, slower, deeper, and more meaningful, trips that enrich both travellers and hosts, rather than leaving either potentially feeling hollow.

This may raise a few eyebrows, but it is time we said it clearly: Sri Lanka does not need another slogan. What we need is strategic clarity about who we are speaking to, and just as importantly, who we are not. If a slogan is ever required, it should filter, not flatter; it should quietly discourage the types of travellers we cannot or should not cater to, rather than attract those whose expectations or behaviours are misaligned with the island’s capacity, identity, and long-term vision.

If we empower truly collaborative, multidisciplinary stewardship organisations, attract purposeful capital, invest in infrastructure, and market with discernment, Sri Lanka can comfortably host five million visitors without losing its soul. Each traveller becomes a patron of conservation and community development; each region gains a governance mechanism and an identity anchored in the reasons people come; and each niche becomes a new export channel measured not by headcount but by impact per visitor.

GSG Impact Sri Lanka Summit 2026

This conversation is precisely what gatherings such as the upcoming Lanka Impact Investment Summit 2026, hosted by the Lanka Impact Investment Network (LIIN) and the Global Steering Group for Impact Investing (GSG) Sri Lanka NP (National Partner), seek to advance. By connecting access to private equity with the policy sector and tourism industry under the shared banner of impact investment, the Lanka Impact Investment Summit underscores that regeneration and profitability are no longer opposing forces but part of the same equation.

So here we are today, eagerly awaiting the next peak season, possibly the best one we have ever had. Tourism’s comeback feels like a celebration, a long-awaited party after years of hardship. But as we step onto the dance floor, we must choose our partners wisely. The next decade will determine whether Sri Lanka becomes another cautionary tale of over-tourism or a benchmark for sustainable and regenerative growth. The silver lining of our difficult past, civil conflict, tsunamis, and crises, is that we have avoided the worst mistakes others made. Now we can leapfrog them by designing a future anchored in authenticity, fairness, and care and redefining what success in tourism means. Around the world, destinations that protect what makes them special consistently outperform those that commodify themselves.

The dance floor is open. Let’s be intentional about who we invite, and what kind of music we want to play.

Sri Lanka’s licenced finance companies (LFCs) need to pivot from traditional consumption-led lending towards financing industrial and export-linked activity if they are to remain relevant in a changing economy, the Lanka Rating Agency (LRA) said in its latest sector review.

The Agency argues that LFCs have the balance sheet strength and risk frameworks to play a more direct role in capital formation, as firms seek investment to raise productivity, add value, and compete internationally.

The LRA says the sector’s future influence will depend on expanding beyond vehicle loans and personal credit, and into areas such as project finance, industrial upgrading, supply-chain finance, and working capital for export production.

These shifts, the Agency notes, would diversify LFC balance sheets while supporting national efforts to rebuild productive capacity. Moving into outward-oriented financing would also help strengthen corporate balance sheets, as Sri Lankan firms attempt to scale into regional markets and generate foreign currency earnings.

According to the LRA, institutions that reposition themselves towards industry-focused lending will be better placed to support more balanced and sustainable economic expansion. The Agency also underscores that credit risk vigilance and an ability to adapt to the Central Bank of Sri Lanka’s (CBSL) consolidation framework remain essential to stability.

The LRA’s sector analysis shows the industry is entering 2026 with stronger fundamentals. Regulatory capital rose to about Rs. 433 billion in the first quarter of FY25/26, supporting a capital adequacy ratio of roughly 22%. Sector assets reached around Rs. 2.28 trillion, growing at a compound rate of nearly 8%, while the gross non-performing loans (NPL) ratio fell to about 8.3% from 13.6% a year earlier. Profit After Tax (PAT) was Rs. 69.4 billion in FY24/25 and Rs. 18 billion in the first quarter of FY25/26.

The sector’s liabilities increased 29.1% year-on-year (YoY), with borrowings up nearly 76% owing to stronger deposit inflows. The CBSL’s NBFI Master Plan requires institutions to achieve a minimum stability score of 60 by 2027 if they intend to operate independently, signalling continued consolidation pressure.

The 12 largest firms hold close to 80% of sector assets, with loans and advances at about Rs. 1.75 trillion, or 76.6% of total assets. Leasing accounts for roughly 44% of the loan book and other loans for about 33%.

Liquidity and rollover risk remain concerns, as a high share of deposits and borrowings mature within a year. The sector is also exposed to commodity price swings after the gold portfolio expanded by around 30% in FY24/25, reflecting a 34% rise in gold prices. The LRA notes that about half of long-tenor assets are funded by short-term deposits, leaving firms sensitive to interest-rate movements.

Despite these vulnerabilities, the LRA maintains that LFCs are structurally well placed to support the shift towards an investment-driven growth model, provided they execute a strategic repositioning towards industrial finance and manage risks prudently.

Bairaha Farms yesterday said that its proposed 1-for-5 share split will take place following shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 17 December.

Subject to approval, the subdivision will be carried out based on the shareholding as at 19 December.

The company said its shares will be suspended from trading from 18 December to 24 December, with trading on the subdivided shares set to commence on 26 December.

The Board has recommended a share split on a 1-for-5 basis.

This will increase the number of issued ordinary shares from 17.6 million to 88 million, while the stated capital will remain unchanged at Rs. 536.3 million.

The share closed at Rs. 450 yesterday, up Rs. 1.25 from the previous close.