Category: Daily Financial Times

Minister K.D. Lalkantha yesterday said the Government will hold Provincial Council (PC) elections next year, either under the existing system or after introducing a new electoral framework.

He told reporters that the elections could proceed under the previous system by amending the Bill already passed in Parliament. ‘We have a two-thirds majority and can pass the necessary legislation to hold the PC elections under the old system,’ he said.

Responding to questions on whether the Opposition alliance would pose a challenge, the Minister dismissed the idea.

‘The Opposition will not be an issue. We have a functioning Executive Presidency and 159 MPs working effectively. A new political culture has been established, and the people have confidence in the National People’s Power (NPP) Government and the local bodies it administers,’ he said.

The Asian Development Bank (ADB) yesterday urged Sri Lanka to treat cybersecurity and data protection as central pillars of its digital transformation agenda, warning that national competitiveness and public trust in digital services will depend on how well the country safeguards its information infrastructure.

ADB Sectors Department 2 Director General Cleo Kawawaki said cybersecurity is not only a policy or institutional concern but a shared responsibility that must extend across government, business, and individuals.

‘This morning, I woke up with a phishing email telling me that my app had been accessed from somewhere else and that I should press a button to fix it,’ she said at the ADB Serendipity Knowledge Program (SKOP) on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development yesterday in Colombo, in partnership with the Department of National Planning of the Finance Ministry.

‘We all know what that means. It means that if I press that, it steals all my details. Cybersecurity threatens every single one of us. All of the promises of the digital economy can be undone by one person not watching out and pressing that button,’ she added.

She said that while technology and policy are critical, awareness and behaviour across society are equally vital to building a resilient digital economy.

‘It is not just a policy issue, it is not just an institutional issue, but a whole-of-society issue,’ she said. ‘Events like this can raise awareness and help us find solutions so that the promise of digital can be delivered to the whole society without the crushing risks and breaches of trust that come from these threats.’

Kawawaki said the ADB’s SKOP is a flagship initiative supporting Sri Lanka’s evolving development priorities and advancing secure, inclusive, and interoperable digital ecosystems across the Asia-Pacific region.

‘The Government has recently launched its cybersecurity strategy and is reinforcing its institutional foundations through the implementation of the Data Protection Act and the forthcoming Cyber Security Bill,’ she said.

‘As Sri Lanka accelerates its digital transformation, enabling whole-of-Government digitalisation and expanding services to citizens, the need for a secure and trusted digital economy has become more relevant than ever.’

She warned that cyber threats and data privacy risks are growing in scale and complexity, posing significant challenges to public trust, economic resilience, and national security.

‘Without trust, digital services cannot thrive. Without security, the benefits of digitalisation risk being undermined,’ she said. ‘That is why cybersecurity and data protection must be embedded by design and by default into all of the country’s digital initiatives.’

Kawawaki said the ADB is working with the Government to strengthen the country’s cybersecurity and data protection governance frameworks and build institutional capacity to respond effectively to emerging threats.

Chief Adviser to the President on Digital Economy and Information Communication Technology Agency of Sri Lanka (ICTA) Chairman Dr. Hans Wijayasuriya told the forum that Sri Lanka will anchor its digital economy strategy on cybersecurity and data protection, viewing them not as regulatory necessities but as the foundation for innovation, competitiveness, and economic resilience.

Dr. Wijayasuriya said secure data systems and privacy frameworks will define Sri Lanka’s ability to build trust and attract investment in the digital era.

‘A good data protection and cybersecurity framework provides the platform for innovation and competitive advantage. Few countries can now compete on cost; agility and trust are the new calling cards,’ he said.

He explained that cybersecurity and privacy measures form the ‘security by design’ foundation for the Government’s plan to grow the digital economy fivefold to $ 15 billion by 2029 and triple digital exports to more than $ 5 billion.

‘We designed the Digital Economy Blueprint for Sri Lanka to be Artificial Intelligence (AI)-first and anchored on trust. Cybersecurity, privacy, and ethical AI are not optional-they are the bedrock of growth,’ he added.

Dr. Wijayasuriya noted that Sri Lanka has already made significant progress with the enactment of the Personal Data Protection Act (PDPA), the establishment of the Data Protection Authority, and the development of the National Cyber Security Centre (NSSERT). These, he said, place Sri Lanka in the upper quartile globally in terms of cyber resilience.

He urged policymakers and businesses to treat trust and data governance as strategic differentiators.

‘In today’s digital economy, our unique competitive advantage must be trust, delivered through world-class cybersecurity, privacy technologies, and governance,’ he said, adding, ‘Sri Lanka should aim to be known as the Serendip of trust, governance, and safety in the digital world.’

Industry leaders and Government officials yesterday emphasised the urgent need to build a security-first and privacy-respecting culture across Sri Lanka’s digital ecosystem, highlighting enforcement challenges, data protection gaps, and the importance of public-private partnerships at the SKOP on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development hosted by the ADB in Colombo.

During the first panel discussion, moderated by ADB Digital Technology Specialist – Cybersecurity and Data Privacy Masatake Yamamichi, participants examined the role of cybersecurity and data protection in developing Sri Lanka’s digital economy, enforcement challenges, and international cooperation. Speakers included Japanese Internal Affairs and Communications Ministry Office of the Director-General for Cybersecurity Director Yuki Naruse, Sri Lanka Computer Emergency Readiness Team (SLCERT) Chairman Thilak Pathirage, Commercial Bank of Ceylon PLC Chief Information Security Officer Sunari Dandeniya, Sysco LABS Security Architect Lasantha Priyankara, and Scybers Head of Threat Intelligence Chamath Rathnasekara.

The panellists discussed the need for greater capacity building and consistent enforcement of cybersecurity policies, while stressing that rapid digitalisation across sectors has made resilience and data protection essential to economic stability. The discussion also covered emerging cyber threats, the balance between privacy and innovation, and strengthening institutional frameworks through international collaboration.

A second panel, moderated by ADB Digital Sector Director Antonio Zaballos, focused on cultivating a ‘security-first and privacy-by-design’ mindset from schools to workplaces, including within Government institutions. Speakers included LIRNEasia Founder and Sarvodaya Chairman Prof. Rohan Samarajiva, Data Protection Authority Chairman Rajeeva Bandaranaike, and Visa Sri Lanka and Maldives Country Manager Avanthi Colombage.

The discussion underscored the importance of building trust in digital services, enhancing regulatory enforcement, and improving digital literacy across both public and private sectors. Bandaranaike highlighted that regulation must evolve alongside awareness, while Prof. Samarajiva called for consistent public policy frameworks to prevent data misuse. Colombage noted that private-sector collaboration can help improve public confidence in digital transactions and strengthen cybersecurity infrastructure.

The country’s manufacturing and services sectors in September have expanded, as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said.

The Manufacturing PMI registered an index value of 55.4 in September, indicating an expansion in manufacturing activities at a faster rate compared to 55.2 in August 2025.

The CBSL said this expansion has remained above the neutral threshold during the month from all sub-indices.

The growth in New Orders and Production were largely attributed to the manufacture of the textiles and wearing apparel sector.

Stock of Purchases also increased during the month, driven by the planned accumulation of inventory in preparation for upcoming production targeting the festive season.

The Employment sub-index turned below the neutral threshold in September, with many firms highlighting difficulties in retaining and attracting skilled workers.

However, Suppliers’ Delivery Time further lengthened during the month, as many respondents cited persistent delays in international shipping operations.

The CBSL said the outlook for manufacturing activities over the next three months remains positive, reflecting the expectations of strong year-end seasonal demand.

The Services PMI registered an index value of 58.7 in September, showing accelerated expansion in services activity following a similar trend observed in the same period last year, albeit at a slower rate compared to 68.9 in August 2025.

Business activities continued to expand in September 2025, supported by improvements observed across multiple sectors.

The expansion was driven by strong performance in wholesale and retail trade. In addition, business activities related to financial services also continued to improve, underpinned by increased lending activity.

New businesses increased in September 2025, mainly reflecting the expansions observed in wholesale and retail trade, and financial services-related activities.

The CBSL said employment continued to increase in September 2025, as several companies recruited additional staff to meet ongoing operational requirements.

However, Backlogs of Work declined slightly compared to the previous month.

Expectations for business activities over the next three months continue to improve, supported by favourable macroeconomic conditions, increased tourist arrivals, and the anticipated boost from the upcoming festive season.

For decades, financial analysts have relied on a core set of tools and models to assess risk, predict market trends, and guide investment strategies. While these traditional methods have provided a valuable foundation, they often fall short in today’s increasingly complex and data-rich environment. The limitations of these traditional approaches are becoming ever more apparent.

The limits of traditional financial analysis

Traditional financial analysis often oversimplifies complex financial realities. Models struggle to capture the nuances and interdependencies within a company’s data. Moreover, they often struggle to process the sheer volume of data available today, potentially overlooking critical signals and patterns. And, as some have pointed out, financial statements can sometimes be deliberately obfuscated (Piazza et al., 2022), making accurate analysis even more challenging. The primary focus of these traditional models has been on prediction – forecasting future performance based on historical data – without providing much insight into why those predictions are made.

The promise of AI

The rise of artificial intelligence offers a powerful new set of tools for financial analysis. AI algorithms, particularly those based on deep learning, can sift through massive datasets to identify patterns and anomalies that would be impossible for human analysts to detect (Mienye et al., 2024). AI has the potential to revolutionise financial analysis, enabling more accurate predictions, more efficient risk management, and more informed investment decisions.

The problem with ‘black box’ predictions

However, the increasing reliance on AI in finance also raises some important concerns. Many AI models, particularly the most sophisticated ones, operate as ‘black boxes.’ While they may be able to generate highly accurate predictions, it can be difficult or even impossible to understand how they arrived at those conclusions (Yeo et al., 2025). This lack of transparency poses several risks. ‘Black box’ models can be susceptible to hidden biases, leading to unfair or discriminatory outcomes (Nasir and Rinaudo, 2025). Without understanding the reasoning behind a model’s predictions, it can be difficult to identify and correct these biases. Furthermore, a lack of transparency can erode trust in AI-driven financial systems. If stakeholders don’t understand how decisions are being made, they may be reluctant to accept them.

Explainable AI: A new paradigm

Explainable AI is emerging as a critical solution to the limitations of black-box models (Nasir and Rinaudo, 2025). XAI techniques aim to make AI models more transparent and understandable, allowing humans to comprehend the factors driving their predictions. By providing insights into the decision-making process, XAI can help build trust in AI systems, reduce bias, and ensure ethical and responsible use of the technology (Nasir and Rinaudo, 2025). Several different approaches to XAI are being developed, including techniques such as SHAP and LIME (Mienye et al., 2024). These methods provide insights into the importance of different features in driving a model’s predictions, helping analysts understand which factors are most influential.

Applications and the future of XAI in finance

The potential applications of XAI in finance are vast. From risk assessment and fraud detection to investment strategies and customer service, XAI can help make financial systems more transparent, accountable, and reliable. As AI continues to transform the financial landscape, XAI will play an increasingly important role in ensuring that these powerful technologies are used responsibly and ethically. Ongoing efforts are focused on making even the most complex black-box methods more interpretable (Yeo et al., 2025), paving the way for a future where AI-driven financial decisions are both accurate and understandable.

However, despite the advancements in AI and XAI, we must not overlook the irreplaceable role of human intuition in the decision-making process. While these technologies provide valuable insights, they cannot fully capture the complex dynamics of human behaviour, organisational culture, and unforeseen external factors. Human expertise, shaped by experience and nuanced understanding, remains essential for interpreting AI outputs within a broader context. Factors such as employee morale, team dynamics, subtle shifts in market sentiment and socio-political conditions are often difficult to quantify and model effectively.

Ultimately, it is human judgment that must weigh these intangible elements alongside the data-driven insights provided by AI. The most effective approach to financial decision-making will likely involve a synergistic partnership between AI and human expertise, leveraging the strengths of both to achieve superior outcomes. The rise of Explainable AI represents a fundamental shift in the way we approach financial analysis, moving beyond prediction to a new era of transparency and insight, augmented by the indispensable wisdom of human intuition.

References:

Mienye, E., Jere, N., Obaido, G., Mienye, I. D., and Aruleba, K. (2024). Deep Learning in Finance: A Survey of Applications and Techniques. AI, 5(4), 2066. https://doi.org/10.3390/ai5040101

Nasir, W., and Rinaudo, O. (2025). Future Directions in AI for the Financial Sector: Overcoming Bias and Enhancing Decision-Making with Explainable Models.

Piazza, M., Passacantando, M., Magli, F., Doni, F., Amaduzzi, A., and Messina, E. (2022). Explainable Artificial Intelligence for identifying profitability predictors in Financial Statements.

Yeo, W. J., Van Der Heever, W., Mao, R., Cambria, E., Satapathy, R., and Mengaldo, G. (2025). s10462-024-11077-7.pdf.

(Rozan Jameel holds an MBA (PIM-USJ), FCA, ACMA, BSc (Physical Science); has over 25 years of experience in the sectors of construction and engineering, retail supermarket chain, hospitality industry, import export field, automobile and education, and held positions such as Director Finance, CEO and Group CFO.)

(Dr. Susil Kumara Silva holds a PhD (Mgt. USJP), is a Sr. Lecturer, Researcher, Management Consultant; Accredited Director (SL), Chartered Member CIPM, MSLIM, CIM (UK), 26 years of managerial experience in construction and engineering, trading, apparel, manufacturing and education sectors, and held positions such as CEO, Sr. Executive Vice President and Group Head of HR and Administration in large organisations.)

India is set to host the centenary Commonwealth Games in 2030 – the second time in 20 years that the event will have been held in the world’s most populous nation.

The city of Ahmedabad in the west of the country has been chosen ahead of Abuja in Nigeria by an evaluation commission from governing body Commonwealth Sport.

And the decision to hold the Games there in five years time is now expected to be ratified at the organisation’s general assembly in Glasgow on 26 November.

Ahmedabad can boast the Narendra Modi Stadium – the largest in the world, with a capacity of 132,000 – which hosted the Cricket World Cup final in 2023.

The city has a population in excess of five million people, and has even been suggested as a potential bidder to host a future Olympic Games.

“We see the 2030 Games as a powerful opportunity to inspire our youth, strengthen international partnerships and contribute to a shared future across the Commonwealth,” said Dr. P T Usha, president of Commonwealth Games Association India.

The Games first visited India in 2010 when Delhi hosted.

It is the second time Abuja has missed out on staging the Commonwealths, having been overlooked for the 2014 edition in favour of Glasgow.

And it also means Africa’s wait to hold the event for a first time will continue.

The news looks set to end fears that Glasgow 2026 might be the last-ever Games, with Scotland’s largest city having stepped in after the Australian state of Victoria withdrew for financial reasons.

That came after Birmingham took on the 2022 event after the South African city of Durban pulled out.

However, a reimagined format – with fewer sports, athletes and venues – has lessened the cost and enticed India, Nigeria and a handful of other countries to make their pitch to welcome the 74 Commonwealth Sport nations and territories.

A Commonwealth Sport statement said they “assessed candidate cities against a wide range of criteria’ and have ‘agreed to develop a strategy for supporting Nigeria’s hosting ambitions for future Games, including consideration for 2034.”

Meanwhile, Glasgow 2026 chair George Black said the news ‘marks a significant milestone’. He added that they ‘stand ready to create a powerful bond between Scotland and India that will be the bridge to the Games of the future’.

The 2030 Games will mark the centenary of the inaugural event held in Hamilton, Canada, in 1930.

Global Bookkeeping Solutions Ltd. (GBS) Founder and Managing Director Niluka Jayasinghe, FCA, FCPA, ACCA, FFA, FIPA, BSc (Marketing, USJP) was named CA Sri Lanka Best Entrepreneur 2025 at the 46th National Conference of Chartered Accountants, held on 9 October 2025 at the Monarch Imperial, Sri Jayewardenepura Kotte.

The award celebrates her leadership in expanding Sri Lanka’s knowledge-based export economy and advancing the business-process management (BPM) sector. Since founding GBS in 2018, Niluka has built a company delivering cloud accounting and financial outsourcing services to clients in Australia, New Zealand, UK, USA and Middle East. GBS records a five-year CAGR of 103% and employs over 50 finance professionals.

‘Sri Lanka’s future lies in exporting skills and integrity – not just goods,’ Jayasinghe said. ‘This award belongs to every professional, specially women, proving our talent can thrive globally.’

Before founding GBS, Niluka worked with Ernst and Young, BPO Connect and Ganrid Consultants, gaining global finance and compliance expertise. Her company has trained more than 200 young professionals and championed remote work models for women in finance-strengthening Sri Lanka’s human capital for the digital economy.

Her recognition underlines CA Sri Lanka’s commitment to celebrating entrepreneurs who embody integrity, innovation and impact-values that align with this year’s theme ‘UPRISE – Global Insight >> Local Impact.’

MAS Holdings unveiled its bold and forward-thinking sustainability strategy under the banner ‘Plan for Change 2030: Inspiring change beyond the good’ at a high-impact forum attended by global sustainability leaders, industry pioneers and community stakeholders at the Cinnamon Life Colombo yesterday.

The forum addressed pressing issues around climate change, textile circularity, social equity and supply chain resilience, while emphasising the urgent need for ethical transformation in the apparel sector.

Delivering a powerful keynote, Brooke Roberts-Islam, noted sustainability advocate and industry journalist, underlined the critical intersection of climate change and ethical practices in fashion: ‘The apparel industry is at a tipping point. If we do not embed ethical values at the core of innovation, we risk perpetuating a cycle of harm – to the planet and to people. Global warming isn’t just an environmental crisis, it’s a humanitarian one. MAS Holdings’ Plan for Change signals a necessary shift from ambition to accountable action.’

She praised MAS’s approach, which integrates social resilience with environmental stewardship, calling it a blueprint that other global fashion companies must urgently adopt.

As Roberts-powerfully stated during the keynote: ‘This plan isn’t about doing less harm – it’s about doing more good. We must move from sustainability as a marketing term to sustainability as a moral obligation, with people and the planet at the core.’

The panel discussion brought together high-level voices who reflected on actionable strategies amidst global volatility.

MAS Holdings Director – Group Sustainable Business Nemanthie Kooragamage said: ‘This isn’t just about reducing impact – it’s about regenerating. Our supply chains, our people, our planet – they all need to be empowered, not just protected. Plan for Change is our contract with the future.’

Ambercycle Co-founder and CEO Shay Sethi added: ‘Circularity must move from concept to infrastructure. Technology exists. What we need now is radical collaboration across regions and regulators.’

Asian Development Bank Country Director Takafumi Kadono focused on policy and financing: ‘Scaling sustainable apparel requires both private and public investment. MAS shows what’s possible when business aligns with long-term climate goals.’

He further added, ‘Sri Lanka’s industrial growth over the past two decades has been only around 20%, while Vietnam has surged by over 300%. Despite Sri Lanka’s rich geography, strategic location and natural resources, we have clearly missed the bus. But the time to catch the next one is now-and sustainability must drive that journey.’

Dialog Axiata PLC CEO Supun Weerasinghe shared insights on digital innovation: ‘The integration of data and technology can help transform sustainability from an ambition into an operational system of accountability, despite the challenges of COVID-19 and the economic crisis, Sri Lanka is recovering at a good pace. The momentum is real-we’re moving in a positive direction.’

MAS Holdings envisions a future where every garment created is not only high-performing but also ethically made and environmentally responsible. This focuses on reinventing the design and production of apparel to serve the planet and people.

Product: Creating future-fit apparel

MAS is transforming how garments are made, focusing on innovation and sustainability at every stage.

Target: 75% of company revenue from sustainable products by 2030.

1. Textile-to-Textile Circularity to recycle post-consumer waste into new garments.

2. Development of Materials of the Future, including bio-based and regenerative alternatives.

3. Expansion of natural and responsibly sourced fibres like organic cotton and hemp.

Planet: Regenerating our world

Going beyond sustainability, MAS is investing in restorative environmental practices.

MAS target: Reduce our Scope 1 and 2 emissions footprint by 80% (from a 2019 baseline) by 2030, leading to Net Zero by 2048.

1. Transition to renewable energy and low-carbon logistics.

2. Circular waste management to minimise landfill impact.

3. Adoption of responsible chemical use in textile processing.

4. Water stewardship and water-positive goals in high-stress regions.

5. Launch of ecosystem regeneration projects including reforestation and biodiversity restoration.

Lives: Building resilient lives

MAS recognises that environmental progress must go hand-in-hand with social responsibility.

Fair Care Responsibility to advance gender equity and women’s empowerment across the company.

Employee well-being through safe workplaces, mental health support and living wages.

Emphasis on Diversity, Equity and Inclusion (DEI) in recruitment, leadership and culture.

Community engagement to build local resilience against climate-related risks.

The Plan for Change 2030 is more than an internal framework-it’s a call to action for the global apparel industry to prioritise ethics, equity and environmental restoration.

MAS Holdings Co-Founder and Chairman Mahesh Amalean underlined the company’s broader mission: ‘We’re not just reducing our footprint. We’re creating a future where our products, people and planet thrive in balance.’

With clear targets and transparent

strategies, MAS Holdings is positioning itself as a leader in sustainable fashion, driving change not just in what we wear-but we live, produce and protect our shared planet.

Investing in local community infrastructure, education, disaster preparedness and adaptation strategies to help vulnerable populations cope with the impacts of climate change. MAS collaborates with NGOs and local governments to drive meaningful and measurable change.

Each of these is interconnected, forming a comprehensive strategy that acknowledges the complexity of today’s global sustainability challenges. MAS Holdings’ Plan for Change 2030 represents not only an internal transformation but also a call to the entire apparel industry to reimagine its role in building a sustainable just and regenerative future.

Sri Lanka must now convert its cyclical post-crisis rebound into a structurally driven growth process, the Institute of Policy Studies (IPS) said yesterday, warning that the country’s recovery will hinge on deeper productivity and efficiency gains as external uncertainties persist.

Releasing its annual Sri Lanka: State of the Economy 2025 report, the IPS said GDP growth of 4.9% in the first half of 2025 reflected the outcomes of a steady and predictable policy environment. However, it noted that sustaining this momentum would depend on structural reforms, particularly in land and labour markets, and greater openness to trade and investment to improve resource allocation.

‘At this mid-point of Sri Lanka’s post-crisis recovery, a critical question is what the source of such productivity gains will be. Reforms to tackle rigidities in land and labour markets or opening up to trade and investment help to improve resource allocation and lift productivity,’ the IPS said in a statement.

The report said technology infusion and digitalisation could accelerate productivity gains while broader institutional and policy reforms take effect. It highlighted the challenge for policymakers in balancing long-term reform goals with short-term social and economic demands, especially in an economy still recovering from crisis conditions.

National computer literacy remains low at 39%, with sharp disparities such as 17.9% in the estate sector. Yet IPS said the digital economy offers an opportunity to narrow social and regional inequalities if supported by investments in digital access for underprivileged schools, affordable services, and digital literacy programs.

The report cited that 42% of adults in the poorest 40% of households already use digital payments, a trend that could strengthen e-commerce growth and modernise transport and public service delivery. Extending digital tools to agriculture could also reduce costs, improve traceability, and enhance competitiveness in export markets amid global trade uncertainties.

‘It bodes well to develop Sri Lanka’s growing e-commerce sector or to improve safety and convenience of the country’s public transport system. Widespread access and scalability through digital channels on extension services can help farmers. In an environment of global trade uncertainties, lowering the costs of doing trade and enhancing export competitiveness through product traceability to meet new regulations in the global market will be distinct advantages,’ IPS said.

IPS said embedding such productivity-enhancing technologies into Sri Lanka’s economic model would not only raise efficiency but also support the Government’s objectives for stable and sustained long-term growth as the country prepares to resume its external debt service obligations.

President Anura Kumara Disanayake has directed public officials to ensure that all financial allocations for 2025 development projects are fully utilised, warning that returning unspent funds to the Treasury undermines progress and leads to wasteful repetition of incomplete projects.

Speaking at the Special District Coordination Committee (DCC) meeting in Ratnapura, the President said public officials play a crucial role as intermediaries in ensuring that public spending translates into tangible development outcomes for citizens.

‘The funds allocated for this year’s development projects must be completely utilised. Failing to do so will not only hinder development but also result in wastage of funds,’ the President told State officials.

He added that repeatedly allocating money to unfinished projects prevents the launch of new initiatives and weakens the efficiency of Government spending.

President Disanayake criticised past practices where Government projects were launched without feasibility studies or long-term maintenance plans, noting that such expenditure had become a recurring burden on the State.

He cited the Hambantota SAARC Cultural Centre and the Anuradhapura Auditorium as examples of facilities now difficult to maintain due to the absence of responsible managing institutions.

The President said that many Government-built structures, such as tourist bungalows, inns, and public markets, remain unused or neglected, and suggested that private-sector management would be a more practical approach to ensure their sustainability.

During the meeting, the President also discussed flood and landslide risks in the Ratnapura District and agreed to allocate funds in the upcoming Budget to conduct a new feasibility study for a flood prevention project on the Kalu Ganga tributaries, noting that no such study has been carried out since 2014.

As Sri Lanka joins the global community in marking World Food Day 2025 under the theme ‘Hand in Hand for Better Foods and a Better Future,’ the message is clear: achieving food security and nutrition for all requires collaboration that transcends institutional boundaries, sectors, and generations. In a world of increasing shocks and stresses, no single actor can shoulder this responsibility alone.

Sri Lanka stands at a critical juncture. Despite commendable progress in reducing hunger and malnutrition, the combined impacts of economic volatility, climate variability, and market disruptions continue to challenge households and communities. Food security and nutrition for all still remains unfulfilled while rural communities – particularly smallholder farmers – face barriers in accessing markets, finance, and climate-smart technologies, globally and in Sri Lanka. Delivering on the Sustainable Development Goals (SDGs) in this context is not just about meeting global commitments; it is about securing livelihoods, dignity, and stability within the country.

Rome-based UN agencies

The United Nations’ Rome-based agencies – FAO, IFAD, and WFP – each bring distinct strengths to this effort. FAO provides policy and technical expertise to modernise and diversify agriculture. IFAD invests in rural transformation, empowering smallholder farmers by strengthening inclusive value chains and enhancing access to finance. WFP addresses immediate food and nutrition needs while strengthening school meals, emergency preparedness, and social safety nets to build resilient food systems. However, the real impact comes when these efforts converge – aligned with national priorities and reinforced through partnerships with government institutions, private sector innovation, civil society engagement, and community participation.

Promising pathways

In Sri Lanka, promising pathways are already visible. The adoption of modern technologies such as digital platforms for market access, remote sensing for climate-smart planning, and data-driven advisory services for farmers are beginning to reshape agriculture. Revitalisation of the tank-based irrigation systems and the sustainable use of water resources are helping enhance the production and productivity of small holder farmers. Youth-led agritech solutions are linking producers directly to consumers, while digital financial services are expanding opportunities for smallholder farmers. Fortified rice in school meals is transforming the way the nutrient needs of young school-going children are met.

Women’s producer groups are playing a pivotal role in ensuring household nutrition, diversifying incomes, and advancing gender equality. Smallholder farmers are being connected to the banks for agri financing and the private sector through a public-private-producer partnerships model. These examples demonstrate that innovation, digitisation, and inclusivity – when anchored in strong partnerships – can unlock transformation at scale.

Challenges ahead

Yet, the challenges ahead demand more. Climate change is altering rainfall patterns, increasing the frequency of floods and droughts, and reducing productivity. Urbanisation is accelerating demand for safe, affordable food, while limited infrastructure in rural areas constrains equitable access to markets. These are systemic challenges that cannot be solved by one sector or one generation. They require a collective vision: policies that incentivise innovation, partnerships that embrace digital solutions, and investments that prioritise both women and youth as central agents of change.

The World Food Day

This year, on World Food Day, as FAO commemorates its 80th anniversary, we are reminded of the enduring value of multilateralism and solidarity. The call is to renew our commitment to working hand in hand – not only across the UN system, but with all partners, across sectors and across generations. Partnerships must extend from ministries to municipalities, from research labs to farmlands, from classrooms to boardrooms, ensuring that innovation and opportunity reach every Sri Lankan.

The road ahead

To accelerate on Sri Lanka’s path toward food security and the SDGs, four priorities stand out:

1. Accelerate digital and technological transformation in agriculture, ensuring that smallholders, especially women and youth, benefit from innovations in climate information, financial services, and market linkages.

2. Invest in gender-responsive and youth-focused programs that recognise women and young people not only as beneficiaries but as leaders and innovators in building resilient agrifood systems.

3. Strengthen climate adaptation and resilience by modernising tank-based ecosystems, promoting climate-smart practices, and safeguarding biodiversity and natural resources.

4. Build a unified national platform for partnerships, data, and accountability, enabling government, private sector, academia, civil society, and communities to jointly monitor progress, share innovations, and drive results.

5. Ensure nutrition-sensitive safety net programs reach vulnerable communities, particularly women and children, to secure access to nutritious food, support healthy growth, and promote long-term food security.

Together, hand in hand, Sri Lanka can secure better foods and a better future – today, and for generations to come.