Category: Daily Financial Times

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) recently held the second Progress Presentations of its Research and Development (R and D) Program, showcasing pioneering research collaborations between universities and industry aimed at driving innovation in the country’s telecommunication sector.

Organised under the Sri Lanka Telecommunications Act, No. 25 of 1991 (as amended), TRCSL’s R and D Program serves as a vital platform connecting academia, industry and the regulator to foster applied research that addresses emerging technological challenges and contributes to the sustainable growth of Sri Lanka’s digital ecosystem.

The 2025 session featured ongoing research projects from the University of Moratuwa, University of Kelaniya and University of Ruhuna, covering a range of innovative topics such as:

n Spatial sound recording and reproduction for personalised speech intelligibility enhancement in noisy environments

n IoT-based sleep monitoring tools to support independent living

n Machine learning-enabled network optimisation to reduce atmospheric ducting interference in LTE-TDD networks

n Software innovations to enhance educational engagement and independence for visually impaired schoolchildren

The event brought together researchers, university faculty, TRCSL Research Committee members, and industry representatives, creating an engaging forum for presenting progress updates, exchanging ideas, and exploring future collaborations.

Interactive Q and A sessions following each presentation encouraged knowledge sharing and feedback, helping align academic innovation with industry needs and regulatory priorities.

The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKIIRSS) held the final session for the lecture series titled ‘Admiral’s Morning’ on 28 October at the Lighthouse Auditorium in Colombo.

The series first began in September, with the aim of building awareness regarding Sri Lanka’s maritime issues.

The lecture was delivered by the LKIIRSS Board member, former Sri Lankan Navy Chief Hydrographer Rear Admiral Y.N. Jayarathna (Retd.), who presented on the topic of the ‘Bay of Bengal and Gulf of Mannar: Our Strategic Neighbourhood.’ He began the lecture with a quick overview of the sessions previously conducted during the course of the series, reminding of the relevant maritime jurisdictions, and then moved on to today’s topic, beginning by identifying the Indian Ocean regions around Sri Lanka; primarily the Arabian Sea to its west, the Bay of Bengal to the northeast, and the Laccadive Sea to its south.

He spoke particularly on Sri Lanka’s neighbourhood, illustrating the various circles of influence surrounding Sri Lanka. The primary circle of influence is well known: India, China and the USA. However, it was analysed that the second circle of influence comprised of Russia, Pakistan, and Japan, with Bangladesh, Maldives, UAE, Saudi Arabia and Australia populating more outward circles.

Sri Lanka’s neighbourhood based on geographical proximity was also discussed, with the importance of bilateral relations with our nearer geographical neighbours, Maldives, India, Bangladesh and Myanmar. Emphasis was given to the need to consider the foreign policy goals and strategic interests of neighbours and countries who influence the region when assessing Sri Lanka’s own strategic interests.

Furthermore, we should pay attention to India’s assets in the Bay of Bengal, which include the Madras Atomic Power Station (Kalpakkam) in Tamil Nadu and offshore oil production in the Krishna Godavari Basin in close proximity to our own nation, and the growing strategic importance to India of its territories of the Andaman and Nicobar Islands. Bangladesh’s interest in submarine cable networks, the Maldives’ interests in maintaining Sea Lines of Communication and Myanmar’s maintenance of Ports and Harbours are also of note.

The session also featured an overview of multiple public information sources (such as Russian Oil and Gas Technologies Magazine and Asia Steel Construction website), which grant access to current information regarding various activities conducted within our nautical neighbourhood.

Google Earth was utilised to illustrate the importance of accounting for our own points of strategic interest, like the Norochcholai Coal Power Plant, which generates up to 50% of Sri Lanka’s electricity, and therefore would be an extremely vulnerable station in the case of an attack and should thus be well protected. Similarly, both Sri Lanka and India have strong incentives to protect the Gulf of Mannar and their respective strategic assets within that area.

The audience also raised questions and sought further clarifications on matters disclosed during the session, such as on which circles of influence countries like Iran and France would come under, and requests for further elaboration on the importance of avoiding tensions within the Bay of Bengal to avoid situations such as the current tensions within the nearby Arabian Sea, and the capacity of Southern India’s Nuclear Power Plant and what measures are taken to protect it. The discussion further encompassed inquiries on practical and international relations aspects of this issue, including the possibility of leveraging the Bay of Bengal to strategically further diplomatic ties with India, future plans to build bases and fields in the Lakshadweep Islands, and so on.

This lecture concluded the series of eight (8) lectures under the banner ‘Admiral’s Morning,’ conducted for two months at LKI. The lectures covered the very essence of this island State’s maritime interests, inspiring renewed interest and dialogues amongst our audiences and giving a greater understanding of why we should invest in our maritime affairs.

The Faculty of Management Studies (FMS) of The Open University of Sri Lanka will hold the Photograph Unveiling Ceremony of former Dean, Senior Professor Nalin Abeysekera, today from 9.50 a.m. to 11.00 a.m. at the Dean’s Office, Faculty of Management Studies.

The event will be graced by The Open University of Sri Lanka Vice-Chancellor Senior Professor P.M.C. Thilakarathne and will stand as a celebration of transformative leadership and academic excellence.

The ceremony will begin with the lighting of the traditional oil lamp, followed by a welcome address by FMS Dean S.A.D. Senanayake. The highlight of the event will be the unveiling of the photograph of Senior Professor Nalin Abeysekera by the Vice-Chancellor, followed by addresses from both distinguished academics. The proceedings will conclude with a vote of thanks delivered by FMS Assistant Registrar M.P.G. Silva.

During his deanship, Senior Professor Abeysekera led a period of remarkable academic expansion and innovation. Three new degree programs and one revised program were approved by the University Grants Commission (UGC) and are now successfully operational. In this time, the MSc in Supply Chain and Procurement and the Advanced Certificate in Human Resource Management (ACHRM) were also introduced-both now well established and contributing significantly to national capacity building.

In his time, the Faculty achieved an impressive 70% increase in student enrollment, reflecting the success of new programs, enhanced outreach, and strengthened confidence in OUSL’s management education. A landmark initiative of this period was the creation of the Entrepreneurship Development and Consultancy Unit (EDCU), which has strengthened the link between academia, industry, and government. The strategic partnership with the National Enterprise Development Authority (NEDA) promoted SME development, entrepreneurship education, and research collaboration across the country.

Further, four vibrant student associations-OSSA, AFSA-OUSL, OUMA, and HR-NEST-were established, empowering students with leadership, creativity, and engagement opportunities. In this time, international collaborations expanded through the Progression Link Agreement with the University of Essex, offering OUSL management students access to 17 MSc programs and second-year BSc entry at the Essex Business School. Another major accomplishment was obtaining internal approvals for a new Faculty building project, setting the foundation for future growth and development within the Faculty of Management Studies.

The photograph unveiling ceremony will serve as a fitting tribute to a tenure defined by innovation, integrity, and institutional advancement.

Senior Professor Nalin Abeysekera continues to serve as a Senior Professor, consultant, and corporate trainer in leadership and marketing across several institutions. His dedication to higher education and national development remains unwavering.

Eagle Logistics on 24 October celebrated its 20th anniversary marking two decades of growth, innovation, and unwavering commitment to excellence.

The milestone was commemorated with a grand anniversary night at Cinnamon Lakeside, Colombo, attended by Eagle’s top 50 customers, overseas agents, and the entire Eagle team.

The evening was a reflection of Eagle’s remarkable journey from its humble beginnings to becoming a leading force in Sri Lanka’s logistics and supply chain industry.

In his welcome speech, Managing Director Asanga Weerackody shared heartfelt insights on the company’s two-decade journey. He reflected that when people think of a company’s success, their minds often turn to growth, profits, and market share. ‘Yes, we achieved all of that,’ he said, ‘because without those results, we wouldn’t have survived for 20 years. But beyond that, there’s another, deeper reason, our purpose.’

He went on to highlight what truly sets Eagle Logistics apart from its people. ‘Twenty years ago, this was us. And today, this is us over 300 strong. But what’s different about us is that all these team members are home-grown. They weren’t picked from the trade or competitors – 99% of them began their careers with Eagle as their first job.’

Weerackody also said that many former team members have gone on to become entrepreneurs or have taken up significant roles across the logistics industry. ‘Over the past 20 years, we have created more than 1,000 professionals for the freight forwarding and supply chain industry. We are proud of this and you, our partners and customers, can be proud too, because we couldn’t have achieved it without your support.’

The celebration night was filled with gratitude, appreciation, and optimism for the future. As Eagle Logistics looks ahead, the company remains committed to its founding purpose: nurturing people, fostering innovation, and delivering excellence in every aspect of logistics and supply chain management.

Time and again, pseudo-nationalism and misplaced fears have stunted the natural evolution of the partnership with India to secure energy security for our country, where opportunities have been squandered for decades under the weight of sentiment rather than strategy.

Take, for instance, the Trincomalee Oil Tank Farm, an asset with immense potential that has languished in neglect for nearly a century. Built by the British during World War II, the complex could have become a regional energy hub, storing and distributing fuel across South Asia. Instead, it has become a symbol of inertia and mistrust. Political posturing and nationalistic rhetoric have repeatedly derailed efforts to modernise and operationalise the facility to its full potential in partnership with India.

Similarly, progress on integrating Sri Lanka’s energy grid with India’s has been stalled for nearly 25 years. The idea is simple but transformative, a cross-border transmission line that allows Sri Lanka to import electricity during shortages and export surplus renewable energy when production exceeds demand. The benefits are evident. Such a grid would enhance energy security, stabilise the national grid, and provide an additional source of foreign exchange. Yet, despite these clear advantages, the proposal has faced periodic resistance, often couched in nationalist rhetoric warning against ‘foreign dependence’ or ‘loss of sovereignty.’ These fears, however, are unfounded.

Energy cooperation is not a surrender of sovereignty but an assertion of national interest in an interconnected world. Every modern nation, from Singapore to France, engages in cross-border energy trading to enhance stability and efficiency. Indeed, regional energy integration is one of the pillars of economic resilience in the 21st century. For Sri Lanka, which faces chronic power shortages, rising fuel costs, and a growing demand for clean energy, grid connectivity with India is not merely desirable, it is essential.

It is, therefore, encouraging that after years of hesitation, tangible progress appears to be on the horizon. Reports last week confirmed that India and Sri Lanka have taken another step forward in their landmark power grid interconnection project, discussing modalities and next steps for implementation. This renewed momentum offers hope that the project may finally move beyond the drawing board and into reality. If executed effectively, the transmission line will help Sri Lanka overcome electricity shortages, reduce reliance on expensive fossil fuels, and monetise its renewable energy potential, particularly in wind and solar power.

Beyond the immediate economic and technical gains, this initiative symbolises a broader shift toward pragmatic regional cooperation. It represents an acknowledgment that the future of Sri Lanka’s prosperity cannot be built on isolation or suspicion. The nation’s energy security, and by extension, its economic security, depends on partnerships grounded in trust, mutual benefit, and a clear-eyed understanding of global realities.

Sri Lanka’s energy security depends on smart choices made today. The full operationalisation of the Trincomalee Oil Tank Farm, the realisation of the power grid interconnection, and a broader embrace of cross-border energy cooperation could together lay the foundation for a resilient and self-reliant energy sector. This vision can only be achieved if the country rises above narrow politics and embraces a spirit of cooperation rooted in realism.

Jayantha Gallehewa has been ceremonially sworn in as the 45th President of the Organisation of Professional Associations of Sri Lanka (OPA) for the 2025/2026 term at its Annual General Meeting held on 31 October.

Prior to his election as President, Gallehewa held several key positions within the OPA, including Vice President and Assistant Secretary. His association with the organisation spans over a decade, during which he has chaired numerous strategic committees, contributing significantly to initiatives on membership development, supply chain, logistics, and transport. He also successfully chaired the 38th Annual Conference and the 4th Apex Awards Committees, both held in August 2025, which highlighted professional excellence and innovation across Sri Lanka’s diverse professional landscape. Beyond the OPA, Gallehewa has earned distinction on the global stage. At the World Summit of the International Federation of Purchasing and Supply Management (IFPSM) held in Cancún, Mexico, he was honoured with the IFPSM President’s Award for 2024 – a historic recognition that made him the first Sri Lankan to receive this prestigious international accolade. The award celebrates his leadership, professional integrity, and outstanding contribution to advancing the supply chain profession worldwide.

As the President of the Institute of Supply and Materials Management (ISMM) Gallehewa has been a driving force in shaping the future of Sri Lanka’s supply chain sector. ISMM successfully declared its anniversary as National Supply Chain Day, marking a national milestone that recognises the critical role of supply chain management in the nation’s economic progress which was instrumental by him. He also spearheaded the National Supply Chain Excellence Awards, along with the Ministry of Industries, honouring innovation, resilience, and best practices within Sri Lanka’s industrial and business sectors.

With his forward-thinking leadership and commitment to professional excellence, Jayantha Gallehewa continues to inspire collaboration, innovation, and unity across Sri Lanka’s professional community – strengthening the OPA’s mission to promote excellence, foster synergy, and contribute to national development.

The OPA serves as the apex body for 52 professional associations in Sri Lanka, including the Institute of Supply and Materials Management (ISMM), Government Medical Officers’ Association (GMOA), Sri Lanka Medical Association (SLMA), The Institution of Engineers, Sri Lanka (IESL), Chartered Institute of Management Accountants (CIMA), Sri Lanka Economic Association (SLEA), Sri Lanka Institute of Marketing (SLIM), and the Bar Association of Sri Lanka (BASL), among others. Collectively, it represents a vibrant community of over 60,000 professionals across 34 disciplines, making it one of the most influential and respected professional networks in the country.

The Management Club (TMC), established in 2001 under the auspices of the Chartered Management Institute – UK, Sri Lanka branch, is a professional forum dedicated to elevating management practices in Sri Lanka to meet international standards. TMC strives to achieve this by offering continuous opportunities for members to engage, network, and participate in diverse programs focused on professional and personal development across various disciplines in the field of management.

TMC Partner Hotels: TMC Colombo at Cinnamon Grand Colombo, TMC Mount Lavinia at Mount Lavinia Hotel, TMC Moratuwa at Ranmal Ramadia, TMC Negombo at Camelot Beach Hotel Negombo, TMC Jaffna at J Hotel Jaffna. TMC Partners: HNB, Sri Lanka Insurance Corporation. Media Partner: Daily Financial Times. Service Partners: Nine hearts Colour labs, Sharp Graphics. Service Providers: KFC, Softlogic Restaurants, Sharp Graphics, Mobitel. Media Partner: Daily Financial Times. Knowledge Partners: KPMG.

Inquiries for membership to The Management Club: Telephone: 071 5860000; email: tmcsecretariat2012@gmail.com/fs@maritimesl.com.

Sri Lanka’s State-Owned Enterprises (SOEs) posted a mixed financial performance during the first half of 2025, with overall profits declining to Rs. 227.8 billion from Rs. 280.7 billion a year earlier.

The fall was largely due to a sharp reversal in the Ceylon Electricity Board’s (CEB) performance, which swung from a substantial profit to a loss following tariff reductions.

These losses outweighed gains recorded by State banks and other profitable enterprises, the Finance Ministry said in its Mid-Year Fiscal Position Report 2025 released on 31 October by Finance Minister and President Anura Kumara Disanayake.

Despite the drop in aggregate profitability, several large SOEs recorded improved results. The three main State banks-Bank of Ceylon, People’s Bank, and National Savings Bank-collectively boosted profits by Rs. 65.5 billion in the first six months, reflecting improved interest margins, balance sheet growth, and lower impairment charges.

Bank of Ceylon’s Profit Before Tax (PBT) rose sharply to Rs. 61.1 billion, from Rs. 22.4 billion in the same period of 2024, supported by a 78.6% increase in net interest income to Rs. 102.7 billion.

Total assets increased to Rs. 5,290 billion, while the deposit base grew by 5.2% to Rs. 4,429 billion. Impaired loans improved slightly to 7.13% from 7.20% at end-2024.

People’s Bank reported its highest-ever half-year PBT of Rs. 28 billion, compared to Rs. 2.6 billion a year earlier, reflecting a 151% increase in net interest income to Rs. 69.3 billion.

The bank’s assets grew by 8.3% to Rs. 3,572 billion, while its deposit base rose to Rs. 3,125 billion. The non-performing loan ratio declined to 9.39% from 10.26%, indicating modest improvements in asset quality.

National Savings Bank also recorded a strong performance with PBT rising 55% to Rs. 31 billion. Its impaired loan ratio dropped to 2.83%, from 5.18% in December 2024. The asset base reached Rs. 1,811 billion, and the deposit base increased to Rs. 1,576 billion.

The CEB’s results, however, erased much of these gains.

Revenue from electricity sales dropped 38.8% to Rs. 192.6 billion, despite a 4.3% increase in demand. The average revenue per kilowatt-hour fell to Rs. 24.64 from Rs. 41.97 due to the tariff reduction in January 2025, followed by a partial adjustment in June.

Although favourable weather conditions reduced thermal generation costs by 8.7%, the utility’s gross profit turned into a Rs. 11.2 billion loss. The CEB ultimately posted a net loss of Rs. 13.2 billion in 1H, compared to a profit of Rs. 119.2 billion in 2024.

The generation mix shifted towards renewable and hydro sources, accounting for 34% and 23% of total output respectively, reducing dependence on coal and fuel-based generation.

The Government meanwhile implemented structural reforms under the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025, establishing four new SOEs for generation, transmission, distribution, and system operation to improve efficiency and transparency.

The Ceylon Petroleum Corporation’s profits declined 17.9% to Rs. 17 billion as turnover fell by 19.3% to Rs. 439.5 billion, reflecting lower global prices and a stronger rupee. Import costs fell to $ 1,040 million from $ 1,235 million in 2024.

The corporation also reduced its longstanding dues to the National Iranian Oil Company from $ 191 million to $ 131 million through partial settlements under the Tea-for-Oil barter arrangement.

SriLankan Airlines remained in financial distress despite a rise in passenger volumes.

The airline carried over 1 million passengers during Q1 of the 2025/26 financial year, with a load factor of 82%, but reported a net loss of Rs. 10.7 billion, down from Rs. 12.9 billion a year earlier.

Operating losses widened to Rs. 5.2 billion, but catering operations provided modest relief, resulting in a group operating profit of Rs. 1.1 billion before finance costs.

The airline’s accumulated losses stood at Rs. 628.3 billion, with negative equity of Rs. 415.2 billion and total liabilities of Rs. 606.7 billion. The Board has approved a five-year restructuring plan focused on cost rationalisation and fleet optimisation.

The National Water Supply and Drainage Board reported a net profit of Rs. 17.7 billion, up 28.3% from Rs. 13.8 billion, supported by lower pumping costs after the electricity tariff reduction.

Revenue reached Rs. 41.5 billion, while cost of sales dropped 20% to Rs. 15 billion. Safe drinking water coverage improved to 99.1%, and the Board added nearly 100,000 new connections.

The Sri Lanka Ports Authority recorded a PBT of Rs. 29.2 billion, up from Rs. 19.8 billion, as total revenue rose to Rs. 52 billion. Container throughput continued to expand, with the Port of Colombo expected to handle over 8 million Twenty-foot Equivalent Units (TEUs) in 2025.

Ongoing development projects at the East and West Container Terminals and Colombo North Port are expected to enhance capacity further.

Airport and Aviation Services (Sri Lanka) Ltd., increased revenue by 31% to Rs. 27.3 billion, supported by strong non-aeronautical income.

Operating profit rose to Rs. 16.1 billion, but a Rs. 4.3 billion exchange loss reversed the previous year’s foreign exchange gain, cutting net PBT to Rs. 14.6 billion and after-tax profit to Rs. 9.8 billion.

The Finance Ministry report noted that while the overall SOE sector remains profitable, its fiscal contribution through levies and dividends fell to Rs. 11.7 billion in 1H from Rs. 14.9 billion in 2024. The Government has moved ahead with broad-based reforms aimed at improving governance and reducing fiscal risks.

In June 2025, the Cabinet approved the drafting of the Public Commercial Enterprises Management Bill, intended to professionalise the management of State-owned commercial entities, introduce stricter governance standards, and ensure accountability.

A separate committee is reviewing non-commercial SOEs for potential mergers or closures.

State bank reforms also advanced under the Cabinet-approved policy framework, with independent directors recommended by a committee of professionals in July.

The Government’s broader restructuring program aims to align State enterprises with commercial principles, reduce financial losses, and improve transparency across strategic sectors.

Sri Lanka’s external sector remained robust in the first nine months of 2025, despite the current account registering a deficit of $ 183 million in September 2025 for the first time this year on surging vehicle imports.

However, the cumulative current account remained in surplus year-to-date (YTD) end-September $ 1.9 billion, up 29% from $ 1.43 billion a year ago, on moderate growth in merchandise and services exports and tourism earnings and higher worker remittances, according to the Central Bank of Sri Lanka (CBSL).

Merchandise trade dynamics continue to shift, with the trade deficit increasing in September 2025 to $ 910 million, up from $ 634 million a year ago, as imports growth out-paced exports. Imports in September rose by 24.5% year-on-year (YoY) to $ 2.05 billion, whilst in the first nine months, the growth was 12.2% to $ 15.4 billion. Exports grew 12.5% YoY to $ 1.13 billion in September, and by 7.3% in first nine months to $ 10.2 billion.

Resultantly, the trade deficit in September rose to $ 910 million, up from $ 634 m a year ago. The merchandise trade deficit in September was largely driven by the surge in vehicle imports, the CBSL said.

The CBSL said that vehicle imports, comprising both personal and commercial vehicles, totalled $ 286 million in September, leading to total vehicle imports of $ 1.2 billion in the first nine months of the year.

The terms of trade improved in September 2025 YoY, driven by higher growth in export prices relative to import prices, while the Sri Lankan rupee depreciated by 3.9% against the US dollar YTD end-October 2025.

The services sector net inflows reported a 6.3% decline from a year ago to $ 181 million in September 2025, but was up a moderate 1.7% YoY to $ 2.85 billion in the first nine months of the year.

Earnings from tourism showed a moderate 1.1% YoY increase to $ 1803 million in September 2025, while cumulative tourism earnings for the first nine months of the year was $ 2.47 billion, up 5.3% from a year ago.

Workers’ remittances amounted to $ 696 million in September 2025, up 25.2% from a year ago, while cumulative inflows for the January-September 2025 period was $ 5.8 billion, a robust 20% growth from a year ago.

The CBSL said foreign investments in the Government securities market continued to record a net inflow in September 2025, while the foreign investments in the Colombo Stock Exchange (CSE), covering both primary and secondary markets, recorded a net outflow.

Gross official reserves, including the swap facility with the People’s Bank of China (PBOC), remained steady at around $ 6.2 billion by end-September 2025, despite meeting external debt servicing commitments, the CBSL said.

Ceylon Tea Brokers PLC has entered into a Share Sale and Purchase Agreement with DP Logistics Ltd., a member of the David Pieris Group of Companies, for the sale of its entire stake in Logicare Ltd., worth over Rs. 635 million.

The deal, signed on 30 October, involves the transfer of 100% of the issued shares in Logicare for

Rs. 635.3 million, based on an enterprise value of Rs. 1.3 billion.

The transaction marks Ceylon Tea Brokers’ full exit from the logistics subsidiary, which was established to provide integrated logistics and warehousing services. The divestment aligns with the company’s strategic decision to focus on its core tea broking and related services business.

DP Logistics, part of the diversified David Pieris Group, is among the country’s largest logistics service providers with operations spanning freight forwarding, warehousing, and supply chain management.