Muslim politics and culture: Disturbing symbiosis

Since 1980s when Sri Lanka Muslim Congress (SLMC) entered the country’s political arena Muslim politics and Muslim culture began to develop a symbiotic relationship to strengthen the community’s identity politics. The fact that identity politics was the norm and not the exception at that time may be the justification for such an amalgam. Yet, even at that time the pre-SLMC Muslim leaders had the wisdom and foresight to avoid falling into that identity trap and were able to utilise their commercial tool of bargaining between the existing parties to get the best deal for their community. It was politics of pragmatism as came to be known later.

What made this bargaining possible was the ubiquitous presence of Muslim voters in several parliamentary constituencies across the country. Also, the growing discontent between the Sinhalese and Tamil politicians from 1950s further strengthened the hands of Muslim leaders. As a result, special privileges were granted to the Muslim community as part of affirmative action. For example, the origins and growth of Muslim primary schools, Muslim Maha Vidyalayas, and Muslim training colleges is an outstanding testimony for the success of pragmatic politics.

What is even more significant and not well researched by scholars is the fact that Muslim politics did not disturb the millennium old historic and peaceful integration of this community into Sri Lanka’s multi-ethnic polity. Muslims in every aspect had become a community OF and not IN Sri Lanka. After the 1980s and with the growth of SLMC identity politics however, this healthy integration seems to have received a setback with the intrusion of cultural elements into Muslim politics.

Without going into the origins and ideological foundation of SLMC which had been dealt with in author’s earlier columns in this journal let the readers pose the question to SLMC leaders as to what their specific achievements were since that party came into existence. On the other hand, the Muslim cemetery at Majma Nagar in Oddamavadi bears witness to the monumental failure of SLMC leaders to prevent the cremation of corona-dead Muslims during Gotabaya’s presidency. Recently, someone had highlighted that the South-Eastern University in Oluvil is the achievement of SLMC during the time of its founder president Ashraf. True, but the groundwork for a university in that region began during the time of former Minister of Education Badiuddin Mahmud, and had his government been returned at the 1978 General Election today’s Eastern University would have been built somewhere in the Southeast.

Sowing the seeds of Islamisation in Muslim politics

Be that as it may, the entry of SLMC as the leading campaigner for ‘Muslim rights’, which have not been identified until now, had sown either intentionally or inadvertently the seeds of Islamisation in Muslim politics. The fertiliser for its growth came largely from abroad via Jayewardene’s post-1980s open door economic paradigm. While Islamisation was merely an exercise in real politique with a religious veneer to capture Muslim votes, it soon created a space for other Islamist elements like Zahran Hashim’s National Tawhid Jamaat (NTJ) to step into the political arena with more radical agendas.

While SLMC campaign platforms created a religious flavour with party stalwarts appearing with beards and white caps, and while their mullahs addressing the crowd with quotes from the Holy Quran and Prophet’s sayings amidst shouts of Allahu Akbar, NTJ went a step further and advanced radical measures not simply to enter the Parliament but to change Sri Lanka itself from ‘Dharul Qufr’ (Abode of Non-believers) to ‘Dharul Islam’ (Abode of Islam). The whole truth behind how this group eventually became a bunch of mercenaries at the hands of more sinister elements from outside the Muslim community and eventually perished in blood is yet to be revealed in full. But the point to note here is the danger of promoting identity politics with religious and cultural ingredients.

There is another disturbing development which is also an indirect consequence of SLMC’s identity politics. This is the growing trend towards Arabisation of Muslim towns like Kattankudy. This enclave, which was described earlier by this columnist as a ‘Mullah Merchant Urban Settlement’, is now transforming into a Mullah Merchant Arab Complex. In fact, a recent Muslim tourist from Azerbaijan who visited Kattankudy did describe it as an Arab town in Sri Lanka. With around 50,000 population of whom nearly 90% are Muslims living cramped inside a land area of only 2.56 km2, with nearly 70 mosques crowned by a replica of the historic Al-Aqsa in Palestine and with street junctions and arches decorated with Arabic calligraphy, and on top of all these with a row of date palms in the middle of Kattankudy main street give this enclave a Middle Eastern flavour which is alien to Sri Lanka. Added to these elements is the ‘confronting’ attire (as one foreign prime minister described to this columnist) worn by Muslim men and women in the name of a so-called cultural dress. A brief note on this attire is relevant in this context.

Muslim attire is adding to self-alienation

None can deny one’s right to wear whatever dress one likes. It was on that argument few years ago a couple of Muslim lady teachers in Trincomalee won their case in the court for contravening the school’s tradition of lady teachers coming in sarees. But how that victory added to the deteriorating social cohesion between Tamils and Muslims in that district escaped the notice of everyone. The same is true at the national level. Muslim attire is adding to self-alienation of Muslims in multi-cultural societies.

Recently, Prime Minister Harini Amarasuriya announced that Muslim girls could attend any school wearing their cultural dress and pursue their education. While welcoming this announcement it is left to the Muslim community to decide which is the most appropriate dress for their school children which, while conforming to the cultural norms of the society should not be an impediment to those children to participate fully in all school activities including co-curricular and extra-curricular ones. Excellence in academic performance should not be the sole objective of education for a Muslim child attending school.

Islam in Sri Lanka as noted previously has a proud history as an integrated element of the nation’s cultural mosaic. Post-SLMC identity politics appears to be threatening this integrated edifice as evinced by the title of a book authored by a local academic and published in 2025 with the title ‘Muslims in Sri Lanka’ instead Muslims of Sri Lanka. That title seems to add substance to Dr. Colvin R. de Silva’s comparison of Muslim attachment to the country as that between a cow and the grass.

A post-Aragalaya irrelevance

The 2022 Aragalaya and its impact on the country’s political landscape marks a watershed in Sri Lanka’s post-independence history. The success of AKD at the Presidential Election and NPP at the General Election were, if anything, lasting testimonies for voters’ rejection of identity politics. And no critic with a catalogue of pre-election promises, and post-election failures of the new president and Government could accuse them of communal or religious bias. In short, identity politics is a post-Aragalaya irrelevance. Yet, reactionary elements are regrouping to reinstate the ancient regime as soon as possible, because there are too many skeletons in the cupboard that are threatening to reopen hidden secrets about the felonious past of some previous leaders. Imtiaz Bakir Makar’s VAT ghost is the latest revelation demanding investigation. No wonder SLMC and its breakaway ACMC are back in the field to bargain with other reactionaries more for personal than community benefits. Will the community wake up?

New Companies Act requires full disclosure of beneficial owners amidst enforcement challenges

Targeting hidden wealth, the new amendments to the Companies Act demands full disclosure of beneficial ownership, but secrecy and complex offshore structures will make enforcement difficult, said a panel of industry experts and stakeholders recently.

This discussion took place at a seminar on the Companies (Amendment) Act No 12 of 2025. Organised by Corporate Management Consultants, the event brought together regulators, lawyers, and compliance officers to unpack the new law.

NSB Chairman Dr. Harsha Cabral was the keynote speaker, joined by SEC Former Chairman Dr. DC Jayasuriya and Financial Intelligence Unit Director Subhani Keerthiratne. A panel discussion also featured Registrar General of Companies Aravindi De Silva, CSE Former Chief Regulatory Officer Renuke Wijewardena, and Registrar of Companies Attorney-at-Law Shyama Harshani.

The new amendment was designed to end anonymous ownership and align Sri Lanka with global anti-money laundering standards. The law requires companies to register their beneficial owners, while banning bearer shares and imposing strict disclosure, reporting, and compliance obligations, explained Jayasuriya, while Keerthiratne highlighted the importance of these measures. Thereby, non-compliance carries fines and criminal liability, reflecting a push for greater transparency ahead of the FATF evaluation.

However, enforcement would be challenging due to hidden family wealth often known to only one person, Cabral said during his keynote address. ‘Beneficial ownership is something we always talk about. who the ultimate beneficiary is. Sometimes in families, when maybe only the husband knows of your family wealth… you can’t tell the wife or the children.’

The law requires companies to maintain detailed registers of beneficial ownership for ten years, even after liquidation, and notify the Registrar of any changes within 14 days. Ignorance or feigning ignorance is not an acceptable excuse for any director or secretary, Cabral added.

However, tracing ownership through multiple companies remained a challenge, he said. ‘If you say that you have to get, that company is in Hong Kong, then to see who are the owners of that company. Well, another company in the British Virgin Islands and another gentleman in Canada. So how much of it can be traceable? How much of it can be achieved is going to be a tough one.’

Companies are also required to provide details of beneficial owners to the public upon request, ensuring accountability, Cabral added.

Penalties for non-compliance are substantial and target not only directors and secretaries but also officers and shareholders. Cabral advised that large companies should appoint a dedicated compliance officer to ensure that all obligations are properly signed off.

Expanding on enforcement challenges, Wijewardena discussed the role of the Central Depositary System (CDS): ‘In a private environment, before the issuance of a share or transfer of share, it’s all done manually, but in a listed environment that is not so because you really don’t know whose life you share. Monday morning somebody will come and take over the company at 9:35, so you get to rely on information from the CDS.’

He said that while the CDS can facilitate information flow, the primary responsibility was with the company and its shareholders, and the companies would not be able to escape liability by blaming the CDS.

Wijewardena also warned about challenges with corporate and foreign investors. He explained that where it was easy to assume beneficial ownership with individuals, doing so with regards to corporations and funds was more complex. Foreign funds were extremely complex because the beneficiaries themselves were not aware of where the funds were invested.

‘Their funds are managed through a very complex structure. Global custodians, sub custodians, that’s the way that they have been operating. And we need to balance the compliance regulation with the economic factors also.’

Harshani said the Registrar’s Department was in the process of preparing the necessary regulations and formats, with technical assistance from the World Bank. She added that the system would also be digitalised, allowing filings to be done online. She also explained that electronic signatures would be recognised and accepted to simplify procedures for companies.

Sept. tourism earnings trail expectations despite record arrivals

Despite welcoming a record number of visitors in September 2025, Sri Lanka’s tourism industry fell short of revenue expectations, reflecting persistent challenges in boosting tourist spending.

According to the latest data from the Central Bank of Sri Lanka (CBSL), September earnings rose marginally year-on-year (YoY) to $ 182.9 million, but fell sharply by 42% month-on-month, underscoring the gap between arrivals growth and actual economic returns.

The average daily spending per tourist remains around $ 171-lower than expected-and is a key factor preventing stronger revenue growth.

By comparison, September 2018 saw earnings of $ 279.8 million, highlighting that the industry still lags nearly $ 97 million behind pre-crisis highs.

Thus, the $ 400.66 million earned in January 2025 remains the highest monthly performance since 2020, buoyed by strong early-season demand.

During the first nine months, the tourism industry has generated over $ 2.47 billion, reflecting a 5% year-to-date (YTD) increase. However, the figure remains 31.2% below the 2018 benchmark of $ 3.25 billion for the same period, the year Sri Lanka recorded its highest-ever annual tourism revenue of $ 4.38 billion.

On average, during January-September 2025, around $ 274 million per month was generated from the tourism industry.

Despite the positive momentum, the sector faces an uphill battle to achieve its ambitious $ 5 billion year-end target and revised 2.6 million arrivals goal, following a mixed performance in the first nine months of the year. To reach that goal, the country will need to generate over $ 2.52 billion in the final quarter alone, a target analysts describe as ‘challenging but not impossible,’ given the current pace of demand.

To meet the $ 5 billion target, Sri Lanka must now average over $ 840 million in monthly earnings over the next three months, almost double the current average. It underscores the scale of the challenge as the country looks to reclaim its position among the region’s top-performing tourist destinations.

Prospects College of Higher Education and XpressJobs sign MoU to strengthen career pathways for students

Prospects College of Higher Education (PCHE) announced a partnership with XpressJobs through the signing of a Memorandum of Understanding (MoU). This collaboration aims to enhance career opportunities for PCHE students by directly integrating the latest job openings and internships into the university’s career portal.

With diploma and foundation programs already established, PCHE will be launching its first degree programs this year in Early Childhood Education, Psychology, Information Technology, and Business Management. Through this partnership, students across these disciplines will gain access to tailored job listings.

For XpressJobs, this partnership is particularly meaningful, as it marks the company’s first collaboration with a university offering specialised programs in Early Childhood Education, a field in which the platform regularly supports teacher and education-sector vacancies, including lecturers, counsellors, and academic professionals.

XpressJobs Co-Founder Dr. Oshadie Korale said, ‘At XpressJobs, when we partner with universities, we look for those offering diverse disciplines so our corporate clients benefit from a wide pool of candidates, while students gain access to a range of opportunities across different sectors.’ The MoU was formally signed on 1 October 2025 at the PCHE campus between PCHE Co-Founder and Director of Academics Yasaara Kaluaratchi and XpressJobs Co-Founder/COO Dr. Oshadie Korale. The signing was witnessed by Prospects Holdings Ltd. and PCHE Managing Director Somesh Perera.

PCHE Co-Founder and Director of Academics Yasaara Kaluaratchi said, ‘At PCHE, our mission goes beyond academics, we want to ensure our students are equipped to succeed in their chosen careers. This partnership with XpressJobs is a step toward giving them direct access to real-time opportunities and the confidence to transition into the workforce seamlessly.’

Adding a unique touch to this partnership is the shared history of its signatories: both Kaluaratchi and Dr. Korale are alumnae and classmates of Musaeus College, reconnecting after 18 years to collaborate on a venture that supports the next generation of Sri Lankan professionals.

Through this integration, students will benefit from direct access to XpressJobs’ career platform via the PCHE Career Launchpad, streamlining their ability to explore opportunities in Education, IT, Business Management, Psychology, and beyond.

BALPP’s Executive Credential in Leadership and Public Policy

The Bandaranaike Academy for Leadership and Public Policy is now being recognised as a pioneering institution at the intersection of thought leadership, governance, and professional development. Its latest initiative, the Executive Credential in Leadership and Public Policy (ECLPP), is a one-year, two-semester course designed with precision and foresight. Targeting professionals, executives, and aspiring academics, the program is designed to be a transformative journey-one that blends intellectual rigor with practical insight. BALPP is poised to launch the second batch of the ECLPP soon.

The foremost benefit of enrolling in this course lies in its unique orientation towards the twin pillars of leadership and public policy. In an age where decision-making is increasingly complex, participants will gain not only theoretical understanding but also the ability to translate policy into practice. For mid-career executives, the course provides the tools to elevate themselves beyond managerial competence to strategic vision. For aspiring academics, it opens the door to intellectual engagement with the pressing challenges of governance, development, and ethics.

Skills enhancement is at the very heart of this credential. Under the guidance of distinguished experts, participants will sharpen their analytical capacity, critical reasoning, and persuasive communication. They will learn to interpret data, frame policy options, and design solutions that respond to real-world problems. Equally important, they will cultivate the softer dimensions of leadership: the ability to inspire, negotiate, and manage diverse teams. By the end of two semesters, graduates will emerge not just more knowledgeable, but more agile, confident, and adaptive leaders.

What makes this course especially significant is its uniqueness in the Sri Lankan context. No other tertiary education institution in the country offers such a structured, practice-oriented credential in leadership and public policy. In bridging this gap, BALPP recognises that the nation’s progress depends on producing leaders capable of navigating complexity with integrity and foresight. For participants, this means access to a program that cannot be replicated elsewhere; it is not simply an education, but a distinction.

Finally, the Executive Credential in Leadership and Public Policy is distinguished by the established reputation and academic foundation of BALPP. The Academy’s standing reflects its commitment to delivering programs that are both intellectually rigorous and acutely relevant to the complex challenges of society. For those who earn it, this qualification represents the imprint of high standards – a recognition of personal and professional excellence. Ultimately, the credential is an investment that equips individuals not just to advance their careers, but to make a tangible, thoughtful contribution to the public good.

SLIM NSA 2025 grand finale on 28 Oct. to recognise Ambassadors of Sales

SLIM NSA 2025, Sri Lanka Institute of Marketing – National Sales Awards 2025 is to hold its grand finale on 28 October.

The NSA 2025 Judging Panel that consists of industry experts, has recognised the excellent performers in the sales sector in Sri Lanka for this year. The judging process was conducted from 13 September to 5 October 2025 at the Monarch Imperial.

This year’s event is to be held under the theme of ‘Ambassadors of Sales,’ under the tagline of ‘The Force Behind the Figures’ because sales is not merely about numbers but about strategic impact, professionalism and leadership. SLIM Sales Awards holds utmost recognition as the impact is not only career defining but also being a prestigious platform that forges the seal of excellence as it is respected among the sales fraternity, being the apex body for the industry and having over 20 year legacy of organising the programme with a transparent, structured judging process led by respected industry leaders.

This year marks as significant due to it exceeding the 1200 entries rewriting the history pages for SLIM NSA as it was the highest number of entries received demonstrating the credibility and the recognition of front liners and the female professionals rising in participation further establishes its name for inclusivity.

Moreover, SLIM National Sales Awards has been officially endorsed by the Ministry of Industry and Entrepreneurship Development to ‘contribute significantly towards strengthening SMEs, enhancing entrepreneurship, and achieving the objectives of the National SME Development Strategy Framework.’

Islamic Finance Forum of South Asia celebrates decade of excellence

The Islamic Finance Forum of South Asia (IFFSA) marked a landmark celebration this year, bringing together industry leaders, policymakers, and practitioners for its 10th edition at Shangri-La Colombo. The evening was a triple celebration, featuring the ‘Annual IFFSA Awards’ Ceremony, the ‘Decade of Excellence’ Awards honouring ten years of consistent achievement, and the commemoration of ’20 years of UTO’, to which UTO EduConsult, the company behind the initiative, belongs.

The event was graced by KPMG Sri Lanka and Maldives former Managing Partner Reyaz Mihular, who delivered the Keynote address and Maldives Monetary Authority Deputy Governor Aishath Asna Hamdhi

In the first segment of the evening, the Annual IFFSA Awards were presented, recognising 20 institutions across 30 categories for their achievements and contributions to Islamic Finance in the region. This year’s winners were selected through a rigorous evaluation process overseen by an independent panel of judges, including leading academics, industry experts, and financial professionals from across South Asia.

The awards spanned a wide range of categories, from awards for the best performing banks and takaful institutions, to recognitions for product innovation, social impact, and leadership in the Islamic Finance sector.

Marking its 10th year, this year’s IFFSA Awards introduced a special set of Entity of the Decade Awards, recognising institutions that have demonstrated consistent excellence in their respective categories throughout the past decade. These honours included distinctions such as Bank and IBU, Insurance (Takaful) Company and Unit, NBFI, Asset Management company, CSR Project, Service Provider, Microfinance Entity, of the Decade, culminating in the pinnacle recognition, the ‘Entity of the Decade’ Award.

The celebrations also coincided with 20 years of the UTO Group of companies, with UTO EduConsult, the driving force behind IFFSA and other pioneering initiatives in the region, at its fore. In recognition of its 20-year journey, UTO presented Special Appreciation Awards to twenty institutions that have been longstanding partners in its initiatives.

The evening’s celebrations highlighted not only milestones of the past, but also a shared vision for the future of Islamic Finance in South Asia. It was an evening that underscored the strength of collaboration and the growing role of South Asia in shaping the global Islamic Finance landscape.

10th Islamic Finance Forum of South Asia award winners

Entity of the Year

Gold – Maldives Islamic Bank, Maldives

Silver- Amana Takaful, Sri Lanka

Silver- LOLC Al-Falaah Alternate

Financial Services Unit, Sri Lanka

Bronze – Amana Bank, Sri Lanka

Bank of the Year

Gold – Maldives Islamic Bank, Maldives

Silver – Amana Bank PLC, Sri Lanka

Deal of the Year

Gold – NDB Shareek (Offshore Export Financing Scheme, Sri Lanka)

Silver – Seylan Bank (10MW Solar Project, Sri Lanka)

Silver – NDB Investment Bank and Vidullanka PLC (First Listed Sukuk, Sri Lanka)

Spirit of Islamic Finance award

Maldives Retirement Pension Fund, Maldives

Takaful Institution of the Year

Gold – Amana Takaful, Sri Lanka

Banking Window/Unit of the Year

Gold – Bank of Maldives Islamic, Maldives

Silver – Standard Chartered Saadiq, Bangladesh

Silver – LOLC Al-Falaah, Sri Lanka

Bronze – People’s Leasing and Finance Al-Safa, Sri Lanka

NBFI Window/Unit of the Year

Gold – LOLC Al-Falaah, Sri Lanka

Silver – People’s Leasing and Finance Al-Safa, Sri Lanka

Bronze – LOLC Life Assurance Al-Falaah Takaful, Sri Lanka

Merit – LOLC General Insurance Al-Falaah Takaful, Sri Lanka

Merit – Janashakthi Finance Alternative Finance, Sri Lanka

Service Provider of the Year

Gold – Millennium Information Solutions, Bangladesh

Asset Management Company of the Year

Gold – Al Meezan Investment Management, Pakistan

Gold – Faysal Asset Management, Pakistan

Takaful Window/Unit of the Year

Gold – Allied Takaful, Maldives

Silver – LOLC Life Assurance, Sri Lanka

Bronze – LOLC General Insurance, Sri Lanka

Breakthrough Performance award

NDB Shareek, Sri Lanka

Social Upliftment Award

Gold – Amana Bank PLC, Sri Lanka

Silver – LOLC Al-Falaah, Sri Lanka

SDG Award for Clients of IFIs

Gold – ExPack Corrugated Cartons PLC, Sri Lanka

ESG Award of IFIs

LB Finance Al Salamah (Sri Lanka)

Amana Bank (Sri Lanka)

Emerging Entity of the Year

Lucky Investments, Pakistan

Product of the Year

Gold – Bank of Maldives Islamic (Islamic Credit Card)

Gold – NDB Investment Bank and Vidullanka PLC (First Listed Sukuk, Sri Lanka)

Silver – LOLC Al-Falaah (Wakala Future Cash Plan, Sri Lanka)

Best Digital Product/Fintech Offering of the Year

Gold – Bank of Maldives Islamic (Instant Approval, Maldives)

Silver – LB Finance Al-Salamah (CIM Digital Wallet, Sri Lanka)

Bronze – LOLC Al-Falaah (iPay, Sri Lanka)

Digital Marketing Campaign of the Year

Gold – People’s Leasing and Finance Al-Safa, Sri Lanka

Marketing Campaign of the Year

Gold – Amana Takaful Insurance, Sri Lanka

Best IBF Branch of the Year

Gold – People’s Leasing and Finance (Puttalam Branch, Sri Lanka)

Gold – Bank of Maldives (Male Branch, Maldives)

Women in Islamic Finance Award

Gold – Rifka Ziyard (KPMG, Sri Lanka)

Best in-house Shari’ah Scholar

Gold – Ash Sheikh Nazhan Naurooz (Amana Bank, Sri Lanka)

Gold – Fisol Bin Amri (Maldives Islamic Bank, Maldives)

Rising Personality of the Year (Female)

Gold – Dushyanthi Kahatapitiya (NDBIB, Sri Lanka)

Rising Personality of the Year (Male)

Gold – Ahsan Munaf (LB Finance Al Salamah, Sri Lanka)

Banker/Employee of the Year

Gold – Muhammed Badurdeen Muhammed Nawaz (Amana Takaful, Sri Lanka)

Silver – Safra Firdhouse (Peoples Leasing Al Safa, Sri Lanka)

Bronze – Nadeera Pathirage (Seylan Bank, Sri Lanka)

Branch Executive of the Year

Gold – Ahamed Fahmy Mohamed Faiz (Peoples Leasing Al Safa, Sri Lanka)

9% boost for GDP by 2030 for SL via Japan-SL-India Export-Oriented Industrial Corridor

The proposed Japan-Sri Lanka-India Export-Oriented Industrial Corridor could boost Sri Lanka’s economic growth by 9.3% by 2030, as per a study on the initiative.

The Japan-proposed corridor is envisioned as a geographically defined area connecting India and Sri Lanka, designed as a complementary collaboration among Sri Lanka, India, and Japan.

It aims to create a seamless flow for technology and investment, thereby fostering an industrial hub for global export by deeply integrating Sri Lanka into global supply chains, primarily centred on India.

This initiative is expected not only to accelerate economic growth in both Sri Lanka and India, but also create new business opportunities and enhance competitiveness for Japanese companies operating in both Sri Lanka and India, as well as those considering future expansion into the region.

There are over 5,000 Japanese companies operating in India and over 100 in Sri Lanka, and over 30% of them are engaged in manufacturing.

A conceptual roadmap has been developed by Japan’s Ministry of Economy, Trade and Industry (METI), the Japan External Trade Organisation (JETRO), and think tank Nomura Research Institute (NRI).

Japan is of the view that the corridor is a ‘strategic pathway for Sri Lanka’ and Japan to deepen its longstanding partnership by leveraging Sri Lanka’s geographical proximity and Japan’s technological expertise and investment opportunities. Through this cooperation, Sri Lanka can transform its raw material base into higher-value products, while Japan can strengthen its role as a trusted partner in fostering sustainable and inclusive growth.

Building on this bilateral foundation, it benefits Sri Lanka to leverage its proximity, capabilities, and resources-availability to integrate into the rapidly expanding Indian and broader global supply chains.

A detailed roadmap for the corridor was formally unveiled at the Sri Lanka Business Forum held in Tokyo, with the visiting President Anura Kumara Disanayake as the Chief Guest.

METI Director for Southwest Asia Region – Trade Policy Bureau Shimano Toshiyuki in his presentation at the Forum said the roadmap is grounded in a detailed analysis of Indian import demand and Sri Lanka’s supply capabilities. The preliminary analysis focussed on India’s import dependencies and Government-supported industries while assessing Sri Lanka’s existing global exports, competitive manufacturing products, and potential for leveraging underutilised domestic raw materials. This process identified three primary target sectors: Electrical and Electronic Components, Mineral Resources and Agricultural Resources.

Toshiyuki said the proposed Export-Oriented Industrial Corridor will have a positive impact on Sri Lanka, India, and other regional countries. While the impact on Sri Lanka is a 9.3% GDP growth by 2020, the proposed initiative will boost India’s GDP by 1.28%, Bhutan’s by 0.4%, and Nepal’s by 0.2%.

According to the roadmap, the successful implementation of this initiative requires addressing a series of systemic challenges categorised as ‘hard’ and ‘soft’ issues.

The hard issues include logistical inefficiencies, such as delays and high costs in transporting goods to and from Colombo Port due to capacity limitations and inadequate road/rail connectivity, various energy constraints, and high mineral processing inefficiencies. The implementation plan will be proposed for addressing these issues by expanding and modernising Port facilities, improving national transport networks, enhancing energy infrastructure, and setting up dedicated industrial processing zones with mutually beneficial royalty structures.

The soft issues include regulatory complexity from burdensome and complex approval processes that require streamlined dialogue and digital solutions for regulatory clarity, a recognised gap in mutual understanding and awareness between Sri Lankan and Indian business, and regulatory practices and investment policy gaps that highlight the need for comprehensive investment incentive schemes to attract domestic and foreign capital and for a streamlined certification process to facilitate smooth trade.

The roadmap has proposed a host of future steps for realising the initiative including a multilateral working group, bilateral measures, and private sector involvement, as well as public-private initiatives.

By systematically addressing identified challenges through targeted policy interventions, infrastructure development, and coordinated dialogue, the proposed Export-Oriented Industrial Corridor will unlock significant economic benefits. It promises to advance prosperity not only for Sri Lanka and Japan, but also for India and the wider South Asia region, enhancing resilience, competitiveness, and shared opportunities in global trade.

Official reserves inch up in Sept. to $ 6.24 b

Official reserve assets inched upward to $ 6.24 billion as of end September 2025, after stagnating at $ 6.1 billion the previous two months.

According to the latest Central Bank of Sri Lanka (CBSL) data, foreign currency reserves amounted to $ 6.18 billion by end-September, with Gold reserves amounting to $ 58 million.

The CBSL expects a $ 2.1 billion outflow within the next 12 months, including debt servicing.

Last week, the International Monetary Fund (IMF) said strong tourism receipts, remittances, and exports have helped offset the impact of higher imports on reserves.

IMF Mission Chief Evan Papageorgiou said: ‘Reserve accumulation is an outcome of many variables, not just the imports of vehicles which remove dollars from the market, but also offsetting aspects with strong tourism, strong remittances, and ongoing general strength on the export sector.’

He added that the CBSL remains on track to meet or exceed its net international reserve target.