Category: Daily Financial Times

The inaugural South Asian Bitumen Conference (SABIT 2025) will be held on 13-14 November at the Cinnamon Life at City of Dreams, Colombo, bringing together decision-makers, policymakers, and industry specialists from across the bitumen value chain themed, ‘Bridging Trade, Infrastructure and Supply Chains Across South Asia and Beyond’.

Organised by Conference Connection, together Events and Hospitality Partner, Helanka Vacations Colombo, SABIT 2025 marks the expansion of its Global Bitumen Series into South Asia. The region is witnessing accelerating infrastructure investments, and SABIT aims to provide a dedicated forum for stakeholders to align, innovate, and build partnerships.

The two-day programme will commence with registrations and a networking reception in the evening on 13th November, with a SABIT 2025 Golf Game ice breaker earlier that afternoon. The official opening and Ministerial address by Sri Lanka Transport, Highways, Ports and Civil Aviation Minister Bimal Rathnayaka will take place on 14 November, followed by a keynote address by Sri Lanka Road Development Authority Chairman T. Paskaran.

Over 15 experts will deliver other presentations, case studies, panel sessions and one-on-one meetings covering: Supply, demand, and trade flows in South Asian bitumen markets; Refining, upgrading and blending capacity developments; New technologies for sustainable paving, emulsions, and asphalt solutions; Market access, procurement strategies and logistics and Regulatory, environmental, and policy frameworks.

SABIT 2025 is expected to attract senior representatives from refineries, trading houses, road authorities, contractors, infrastructure developers, logistics providers, technology firms and Bitumen specialists from South Asia, the wider Asia Pacific and Middle East.

Conference Connection General Manager Abby Seah said: ‘For the first time, Conference Connection’s highly successful Global Bitumen Series will be held in Sri Lanka and brings together leading players in key growing South Asian markets notably India, Pakistan, Bangladesh and Sri Lanka. Participants representing the government and various disciplines of refining, trading, shipping and consulting are expected to attend, providing an excellent platform for networking and exchange vital knowledge and market information.’

Helanka Vacations by MendisOne Chairman Rohitha Mendis said: ‘This event is an important milestone, highlighting Sri Lanka as a strategic hub for global industry collaboration and infrastructure development. SABIT 2025 underscores Sri Lanka’s growing role in the global bitumen and infrastructure sector, bringing international expertise, investment and valuable networking opportunities to our shores.’

SABIT 2025 is supported by the Sri Lanka High Commission, Singapore and endorsed by, Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), Ceylon Institute of Builders (CIOB), Ceylon Association of Shipping Agents (CASA), Sri Lanka Philippines Business Council (SLPBC), YoungShip Sri Lanka, among others. Sponsorship opportunities are also available.

Media partners for SABIT 2025 include the World Petroleum and Bitumen Journal, Highways Today, Foreign investors on India (FiiNews), and Worldoils.

Economist and Arutha Research Director – Civic Education Rehana Thowfeek said Sri Lanka must stop repeating the mistakes of the past and commit to an open, outward-looking trade policy if it wants to escape recurring economic crises.

Speaking at the Annual Conference on Public Sector Reforms for Economic Revival, organised by CA Sri Lanka and the Association of Public Finance Accountants of Sri Lanka, she said the country has no choice but to ‘trade its way to recovery.’

‘Trade for Sri Lanka is not just about growth anymore. It is about survival,’ Thowfeek said. ‘The fuel queues, gas shortages, and medicine crises of 2022 were all connected to our inability to earn enough foreign exchange through trade.’

She noted that Sri Lanka has long suffered from a balance of payments deficit because imports have consistently exceeded exports. ‘Before the default, we spent 30 to 35% of our export revenues just on debt servicing,’ she said. ‘We cannot meaningfully reduce our nominal debt stock, so the only way forward is to grow the denominator, GDP, by expanding industries, exports, and jobs.’

She pointed out that public debt exceeded 100% of GDP before the 2022 default and will still remain around 92% of GDP by 2030, even after debt restructuring.

‘While there is some relief from extending debt maturities, the burden is still very high. We must now focus on growing the economy, and that means focusing on exports,’ she said.

Thowfeek said Sri Lanka’s economic history offers clear lessons on what works and what fails.

‘By 1977, Sri Lanka was a closed and inward-looking economy with high tariffs, rationing, and foreign exchange controls,’ she said. ‘The people were dissatisfied, and the economy had stagnated. Liberalisation changed that trajectory. Exports became the engine of growth and the economy shifted from agriculture to manufacturing.’

But over the past two decades, she said, Sri Lanka has reversed direction.

‘There has been a noticeable shift towards protectionism, with para-tariffs and import restrictions that created an anti-export bias, making it more lucrative to sell domestically than to export.’

As a result, the country’s export base has stagnated.

‘The share of exports in GDP has fallen from around 30% at the start of the millennium to about 20% in recent years, and our share of global exports has declined sharply,’ she said. ‘Our export basket remains concentrated in three products-apparel, tea and rubber-and our markets are limited to the US, UK, and EU.’

She contrasted Sri Lanka’s experience with countries such as Vietnam and Cambodia, which liberalised later but have since expanded rapidly.

‘Vietnam and Cambodia opened their economies nearly 10 years after us, yet their trade has surged since the 1990s while ours has declined,’ she said.

‘Sri Lanka’s high-tech exports account for only 1.5% of manufactured exports, compared to 46% in Vietnam and more than 50% in Malaysia and Singapore. These countries attracted foreign investment, integrated into global supply chains, and negotiated multiple effective trade agreements. We did the opposite, and the results are clear.’

Thowfeek said that despite being one of the first South Asian countries to open up, Sri Lanka has regressed into a closed and inward-looking economy.

‘By 2022, we had import bans, exchange controls, and even talk of self-sufficiency. Exports have stagnated, and our lack of diversification has left us vulnerable,’ she said. ‘Einstein said that doing the same thing over and over again and expecting different results is insanity. That is exactly what Sri Lanka has been doing.’

She argued that people expect simple outcomes from economic policy: better jobs, stable prices, and a decent standard of living.

‘Trade is one of the most powerful levers to achieve this,’ she said. ‘But Sri Lanka’s policies have focused on dividing a small pie, not growing it. The question should have been how to make the pie bigger so that everyone benefits.’

Turning to the way forward, Thowfeek said Sri Lanka must make use of trade policy for trade objectives rather than using it to generate revenue or serve narrow interests.

‘There is a national export strategy in the works, but the real test will be implementation,’ she said. ‘We need to work on trade facilitation measures, whether that means fewer bureaucratic procedures, more digitisation, or better infrastructure. We should establish a dedicated office to take over trade negotiations and ensure that trade agreements are effectively implemented. Countries that have succeeded in growing their exports all have such institutions.’

She also called for leveraging and expanding Sri Lanka’s limited number of trade agreements, improving education and skill development, and preparing for technological shifts. ‘We must re-skill people, including in the public sector, and prepare for the Artificial Intelligence (AI) revolution. We need to move up value chains and start targeting high-tech exports,’ she said.

Sri Lanka exported $ 12.7 billion in goods and services in 2024 while importing $ 18.8 billion, resulting in a trade deficit of about $ 6 billion. ‘We can’t close that gap by borrowing. We have to earn our way out by trading more, producing more, and integrating better,’ Thowfeek said.

She also warned of growing global risks, including shifting trade patterns and tariff shocks.

‘When the US imposed a 44% tariff on Sri Lankan exports earlier this year, later reduced to 20%, it exposed how vulnerable we are because 25% of our exports go to the US. If we are so against the US putting high tariffs on our exports, why do we do it to other countries? Is that fair?’ she asked.

Thowfeek warned that reforms are no longer optional but essential. ‘Sri Lanka has been here before. The 1970s were a lesson, and history shows that openness worked for us. Protectionism has hurt us,’ she said. ‘We cannot borrow our way out of a crisis or protect our way to prosperity. The only sustainable path is to open up, diversify, and trade our way to recovery.’

In yet another demonstration of its understanding of customer requirements, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding (MoU) with Baili Investments Lanka Private Ltd. to provide prospective buyers of condominium apartments at a mixed development project in Rajagiriya with access to flexible home loan facilities.

Under this agreement, the Bank will offer home loans to buyers through tripartite arrangements involving the Bank, the developer, and the buyer. Buyers will be able to obtain loans covering up to 75% of the purchase price of their apartments, making it significantly easier for them to own homes in this landmark development.

The project represents an investment of $ 60 million by Baili Investments Lanka featuring six modern towers with 1,000 luxury apartment units, a shopping complex, and cinema and premium lifestyle amenities. The project aims to enhance urban living and aligns with Sri Lanka’s Megapolis and Western Development vision. Construction commenced in May 2023 and the superstructure has already reached the sixth floor. Presales are currently underway, with the full project expected to be completed in September 2029.

Located in Rajagiriya, the development offers a unique blend of urban convenience and a tranquil, green environment, positioning it as one of the most desirable residential projects in Colombo’s suburbs.

Through this partnership, Commercial Bank aims to expand its housing loan portfolio by providing facilities at the lowest interest rates in the market, with repayment plans that include grace periods of up to five years, and structured and tailor-made payment plans. These concessions will enable customers to plan their financial commitments with greater flexibility and confidence. On top of these, the Bank will offer a free Decreasing Term Assurance Policy (DTAP) or a loan protection policy for first-time home buyers, covering the life of the buyer to settle the Home Loan through the insurance policy, in case of an unforeseen eventuality.

The Bank said the agreement between Commercial Bank and Baili Investments Lanka not only opens the door for Sri Lankans to secure modern luxury homes but also underlines the Bank’s commitment to supporting quality real estate developments backed by reputed international investors.

Baili Investments Lanka is a BOI-registered Sri Lankan real estate developer backed by Hong Kong investor Tristan Wu, who has over 20 years of multi-sector experience and a proven track record of successful property development ventures in China. The high-rise in Rajagiriya is the company’s first project in Sri Lanka.

The first Sri Lankan bank with a market capitalisation of more than $ 1 billion, Commercial Bank was also the first bank in the country be listed among the Top 1000 banks of the world, and has the highest capital base among all Sri Lankan banks. The Bank is the largest private sector lender in Sri Lanka and the largest lender to the country’s SME sector. Commercial Bank is also a leader in digital innovation and is Sri Lanka’s first 100% carbon-neutral bank.

Commercial Bank operates a network of strategically located branches and automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 20 branches in Bangladesh, a fully-fledged Tier I Bank with a majority stake in the Maldives, a Microfinance company in Myanmar and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s fully owned subsidiaries, CBC Finance Ltd. and Commercial Insurance Brokers Ltd., also deliver a range of financial services via their own branch networks.

Parliament yesterday passed the Convention against Doping in Sport (Amendment) Bill without any changes.

The Bill, which was taken up for its second reading, seeks to enhance Sri Lanka’s legal framework to better align with international standards in the fight against doping in sports.

Parliament Speaker Dr. Jagath Wickramaratne, thereafter endorsed the certificate on the Convention against Doping in Sport (Amendment) Bill.

The new law amends the Convention against Doping in Sports Act No. 33 of 2013, aligning Sri Lanka’s anti-doping legislation with international standards.

The World Anti-Doping Agency (WADA) annually monitors the laws and regulations on doping in sports in Sri Lanka and accordingly, this Bill aims to amend the existing Act in accordance with the laws and regulations of the World Anti-Doping Agency to bring it in line with the needs of modern sports.

Sri Lanka’s para athletes successfully participated in the World Para Athletics Championships 2025 held in New Delhi, India. Despite constraints in training facilities, they managed to secure two bronze medals and several personal best performances.

The country’s medal tally was led by Pradeep Somasiri, who was awarded the bronze medal in the Men’s T46 1500m. Competing on an international stage, Somasiri adeptly secured third place on the last lap finishing in 3:53:77. His achievement stands as one of the finest middle-distance performances by a Sri Lankan para athlete in recent years, setting a new Asian Para Athletics record.

Nuwan Indika continued the streak of victory by winning bronze in the Men’s T44 Long Jump, reaffirming his position as one of Sri Lanka’s most promising field athletes.

Janani Dhananjana recorded a personal best jump of 5.36m and finished seventh in the Women’s T46 Long Jump. Additionally, her best time was 12:88 sec in the women’s T47 100m heat and had secured 12th place.

Buddika Fernando came in 7th with 6.70m in the Men’s T47 long jump final.

The season’s best distance of 14.07m in the Men’s Shot Put F63 finals was recorded by Palitha Bandara who came in fourth.

Sri Lanka’s para athletes trained with minimal facilities, often without access to proper gym equipment, synthetic tracks, or physiotherapy support. Unlike their able-bodied counterparts, they receive limited funding, sporadic sponsorships, and very few opportunities to train overseas. Many heavily depended on the commitment of their coaches and families.

In recent years, Sri Lanka’s para athletes have won medals at the Asian Para Games, World Championships, and even the Paralympics. As the country looks ahead to the 2026 Asian Para Games in Nagoya 2026 Commonwealth Para Games in Glasgow, 2028 Los Angeles Paralympics, their success at the 2025 World Championships should serve as both a celebration and a call to action.

The National Paralympic Committee (NPC) has been coordinating with a small pool of coaches, but the need for a national strategy is crucial. Investing in modern training centres, rehabilitation programs, and exposure tours would benefit Sri Lankan athletes.

The United Nations Committee on Enforced Disappearances (CED) yesterday raised serious concerns over Sri Lanka’s limited progress in addressing thousands of unresolved disappearance cases, weak accountability mechanisms, and inadequate forensic capacity in investigating mass graves.

In its latest findings released after reviewing Sri Lanka’s implementation of the International Convention for the Protection of All Persons from Enforced Disappearance, the Committee noted that the Office on Missing Persons (OMP) has traced only 23 individuals out of 16,966 registered cases. It said this reflects a ‘high level of impunity’ and a lack of progress in investigating and prosecuting alleged enforced disappearances, including those that occurred during the armed conflict.

The Committee urged the Government to create a comprehensive and updated register of disappeared persons and to strengthen the OMP’s mandate to investigate and ensure accountability in all registered cases. It also called for the inclusion of war crimes and crimes against humanity within domestic legislation and the expedited establishment of an independent Office of the Public Prosecutor.

Expressing concern over the discovery of at least 17 mass graves across the country, the Committee said Sri Lanka’s limited forensic capacity and absence of centralised ante-mortem and post-mortem databases hinder proper investigation. It recommended developing a national genetic database and building forensic capacity across competent authorities to locate, identify, and safeguard human remains, ensuring their dignified return to families.

The Committee’s observations follow its latest session in Geneva, where Sri Lanka’s progress under the Convention was reviewed alongside other State parties.

Sri Lanka and South Africa have renewed their commitment to deepen diplomatic and people-to-people relations, following the presentation of credentials by Sri Lanka’s new High Commissioner to South Africa, Air Chief Marshal (Retd.) Udeni Rajapaksa, to President Cyril Ramaphosa at the Sefako M. Makgatho Presidential Guesthouse in Pretoria.

During the ceremony, Rajapaksa conveyed the greetings of President Anura Kumara Disanayake and referred to the recent discussion between the two leaders held on the sidelines of the UN General Assembly in New York on 23 September.

He reaffirmed the longstanding friendship between the two nations, highlighting their cooperation within the Commonwealth, the Group of 77, and the Indian Ocean Rim Association (IORA). Rajapaksa also briefed President Ramaphosa on Sri Lanka’s efforts to establish a Truth and Reconciliation Commission, inspired by South Africa’s own experience, and expressed appreciation for its continued support.

The High Commissioner noted the strengthening of people-to-people ties, particularly through sports diplomacy, with cricket continuing to play a central role in fostering mutual understanding.

President Ramaphosa extended his greetings to President Disanayake and expressed South Africa’s readiness to further enhance bilateral cooperation.

To mark the occasion, Rajapaksa presented a traditional Sri Lankan ceremonial water vessel (Kendiya) to President Ramaphosa, symbolising purity and goodwill.

A 37-year veteran of the Sri Lanka Air Force, Rajapaksa served as its 19th Commander in 2023 and is affiliated with the Institute of Management of Sri Lanka and the Institution of Engineers of Sri Lanka.

Health Minister Nalinda Jayatissa informed Parliament yesterday that steps are underway to resolve the shortage of dialysis needles after the initially contracted supplier failed to deliver the required type.

Responding to a question raised by Opposition MP Chamara Sampath Dassanayake, the Minister said the supplier appointed to provide the needles had not supplied the specified type needed for dialysis treatments, causing a temporary shortage in hospitals.

He said the Government has now engaged a new supplier and initiated emergency purchases from alternate sources to ensure continuous treatment for kidney patients. Funds have also been allocated to state and provincial hospitals to make local procurements until normal supplies resume.

According to the Minister, the required consignment of dialysis needles is expected to arrive by 12 October, while stocks for major hospitals and regional Medical Supplies Divisions have already been secured.

‘The Medical Supplies Division has opted for local purchasing to address the immediate shortfall after the selected supplier failed to meet specifications,’ Jayatissa said.

Marking a significant advancement in Sri Lanka’s passenger transport sector, the latest premium Zhongtong bus range was recently introduced by its newly appointed local agent, Moveflex Ltd., a fully owned subsidiary of DIMO.

Zhongtong is a familiar name in the Sri Lankan market, having already established a presence in the country over the years. Under DIMO Moveflex’s stewardship, the brand is poised to deliver greater value with stronger sales and after-sales support, powered by the expertise of its parent company DIMO.

Marking a significant milestone in the brand’s local journey, the launch event also featured the ceremonial handover of 17 new Zhongtong buses to customers, underscoring the immediate demand and confidence placed in the new range.

The new Zhongtong range includes models such as the L7, H8, H9, H11, H12 Single Glass, H12 Double Glass, and the New Magnate, with seating capacities ranging from 28 to 51. These models are designed to meet the needs of diverse segments in the country, including tourism operators, intercity passenger transport services, public transport authorities, private city route operators, as well as corporates, universities, and institutions requiring safe and reliable executive-level transport solutions. New models in the pipeline are expected to define public, school, and staff transportation in Sri Lanka.

Strong fuel efficiency and optimised Weichai engines ranging from 205hp to 400hp, combined with aerodynamic exteriors, spacious interiors, and advanced safety features, ensure a product range that is both durable and comfortable while meeting international safety standards.

These new models offer operators significant cost advantages with fuel efficiency improvements of up to 10 to 15% compared to conventional competitors and extended service intervals, reduced downtime, lower maintenance costs, as well as superior return on investment. The design focus includes driver comfort with enhanced visibility, wide entry and exit doors, reverse cameras, and lane-assist options in selected models, while passengers benefit from superior suspension, ergonomic seating, and premium comfort aimed at long-haul satisfaction.

To ensure long-term reliability, DIMO Moveflex is offering robust after-sales support through its close integration with DIMO CAREHUB island-wide infrastructure. Authorised service centres equipped with state-of-the-art facilities will be complemented by mobile service units for on-site assistance. Genuine spare parts will be supplied through a dedicated distribution network, while technical training and driver orientation programs will enhance operational efficiency and fleet safety.

DIMO Group Chief Marketing Officer Dinuk Peiris said: ‘The introduction of Zhongtong’s latest range through DIMO Moveflex is a significant step forward in strengthening Sri Lanka’s passenger transport sector. Customers now have the assurance of a globally recognised brand combined with the trusted backing of DIMO Moveflex and the extensive after-sales capabilities we bring. This synergy ensures operators can look forward to enhanced reliability, efficiency, and long-term value.’

Zhongtong Overseas Marketing Company South Asia Department General Manager Jefferey Chen said: ‘Zhongtong is strongly committed to introducing advanced and fuel-efficient buses that address the evolving needs of Sri Lanka’s transport sector. Our vision goes far beyond simply supplying vehicles – we aim to play a long-term role in building more sustainable, accessible, and future-ready mobility solutions for the country. Our partnership with DIMO Moveflex is a powerful alliance that brings together Zhongtong’s global manufacturing expertise with DIMO Group’s trusted local presence and extensive service network. Together, we will ensure Sri Lankan customers benefit not only from world-class buses, but also from dependable after-sales support and genuine spare parts availability.’

DIMO Moveflex, long recognised in cargo and logistics, has expanded into passenger mobility, leveraging its 3PL expertise and trusted industry reputation to deliver advanced transport solutions backed by proven credibility.

With this introduction, DIMO Moveflex reinforces its ambition to play a leading role in Sri Lanka’s passenger mobility sector by delivering trusted brands and comprehensive support that empower transport operators to meet the demands of a rapidly evolving market.

Sri Lanka GDP growth rate needs to rise above 8% over 10 years to achieve a GDP of $ 200 million and a GDP per capita of $ 9,000 to qualify as an upper middle-class status. A high-income status requires a per capita of $ 13,846 or more. Can Sri Lanka achieve these targets? It is noteworthy that Singapore GDP in 2024 was $ 547.4 billion and per capita $ 90,674.07 while Sri Lanka’s GDP was $ 98.96 billion with a per capita of $ 4,515.57. Singapore’s projected GDP will be $ 900 billion in 10 years with a per capita of $ 130,000. Sri Lanka must decide where it wishes to be in 10 years

Despite some economic progress in Sri Lanka over the years, the fact that the country was declared bankrupt in 2022 negates such achievements from the point of view of sustainability of the country’s economy and shows a structural weakness in economic fundamentals. Excessive borrowings for projects without a proper return on investment assessments, spending far in excess of actual costs for infrastructure projects, operational expenditure in excess of income, accumulating large foreign debts and using some such borrowings especially International Sovereign Bonds for consumption rather than for specific projects with a return on the borrowings in excess of the cost of borrowing, are but some of these structural shortcomings.

Thanks to the often-criticised entry of the IMF, Sri Lanka has been able to instil some financial discipline in economic management and virtually compel the Governments since 2022 to adhere to an economic framework in return for the $ 2.9 billion bailout package negotiated with them. It is well for those who were and still are critical of the IMF to remember that their entry was a result of successive Government’s financial indiscipline and politically influenced monetary policies, and had economic fundamentals been strategic and sustainable, there would not have been a necessity to seek IMF assistance to save the country and assist it to overcome its bankruptcy.

Foreign reserves

Trading Economics (https://tradingeconomics.com/sri-lanka/foreign-exchange-reserves) states that foreign exchange reserves in Sri Lanka were $ 6.107 billion in August 2025 and Singapore’s foreign exchange reserves were SGD 502.02 billion (approximately $ 390 billion) in August 2025 (https://tradingeconomics. com/singapore/foreign-exchange-reserves). The total reserves of Singapore based on publicly available data from Government of Singapore Investment Corporation (GIC), the Government of Singapore owned multinational investment firm Temasek Holdings (Private) Limited, the Monetary Authority of Singapore (MAS), and government’s Central Provident Fund (CPF), are conservatively estimated at S$ 2.5 trillion (2024) (US$ 1.87 trillion). Many analysts believe that the reserves are substantially larger than publicly acknowledged. The Ministry of Finance keeps the full details of the reserves private so as to prevent currency speculation attacks on the Singapore dollar.

Individually, besides the government foreign reserves of $ 390 billion, GIC’s portfolio value was estimated at approximately $ 800 billion as of May 2025 according to the Sovereign Wealth Fund Institute (SWFI), Temasek Holding portfolio S$ 434 billion (US$ 287 billion) as of 31 March 2025. (https://www.temasek.com.sg/en/news-and-resources/news-room/news/2025/temasek-net-portfolio-value-grows-to-record-high-of-434-billion), and as per Wikipedia, CPF managed a portfolio of US$ 463 billion (S$ 594 billion) for 4.2 million account holders.

Sri Lanka’s foreign reserves are woefully inadequate as it can only fund about 2 months of imports to the country. This period will be less when the debt capital and interest payments are considered. Singapore too has a substantial gross external debt, reportedly over S$ 2.4 trillion, but possesses zero net debt because its substantial financial assets-like foreign currency reserves far exceeds its liabilities. Unlike in Sri Lanka, the high gross external debt reflects Singapore’s status as a major global financial hub, attracting large amounts of international deposits and investments, primarily held by private corporations rather than the Government.

If Sri Lanka is to move to a different and higher economic platform, its thinking, meaning people’s thinking, their attitudes, as well as those of politicians and officials, has to change and none should harbour a view that doing the same thing expecting different results, simply will work. While economic data is not easy to find in 1948 when Sri Lanka became independent, Wikipedia reports that in 1960 Sri Lanka’s (then Ceylon) per capita GDP was 152 dollars, Korea 153, Malaysia 280, Thailand 95, Indonesia 62, Philippines 254, Taiwan 149. Singapore’s GDP per capita in 1960 was approximately $ 395 to $ 428 USD. The Monetary Authority of Singapore says that in 1965, when Singapore became an independent nation, its nominal GDP per capita was around US$ 500.

No doubt in 77 years since independence, Sri Lanka has moved along progressively to reach a per capita of $ 4,515.57 by 2024. However, Singapore since its independence in 1965 has moved from $ 500 to $ 90,674.07 in 60 years.

The history, culture, politics, demographics, the geography, the country size, its agriculture and crop diversification and many other factors are vastly different in Sri Lanka and Singapore, and it is perhaps not a fair comparison to make when it comes to the economic status quo of the two countries. However, some fundamental comparisons can and should be made about the basic, logical economic management policies and outcomes irrespective of the differences mentioned earlier. In fact, some of these differences are advantages enjoyed by Sri Lanka over Singapore although the outcomes and returns from these advantages have been very much less than optimal. The population density of the two countries and the land areas illustrate a distinct advantage that Sri Lanka has, and not capitalised, and how Singapore has used less to make more within these two challenging realities.

Singapore’s population density is approximately 8,387 people per square kilometres (or 21,722 people per square mile) as of mid-2025, making it one of the most densely populated countries in the world. This high density is a result of careful long-term planning to manage land scarcity in the city-state of 700 square kilometres. Sri Lanka’s population density is approximately 370 people per square kilometres (959 people per square mile) as of 2025. This density is based on a total land area of 62,710 square kilometres.

Future economic trajectory for Sri Lanka

While GDP and GDP per capita are arguably not the best measures to judge a country’s economic health, they are the measures used globally to do so at present. Some argue that these measures represent the thinking of international institutions like the World Bank and IMF, and that they represent the viewpoint of Western economies led by the USA.

Joseph E. Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, former chief economist of the World Bank (1997-2000), former chair of the US President’s Council of Economic Advisers, former co-chair of the High-Level Commission on Carbon Prices, and lead author of the 1995 IPCC Climate Assessment and Co-Chair of the Independent Commission for the Reform of International Corporate Taxation and the author, most recently, of The Road to Freedom: Economics and the Good Society (W. W. Norton and Company, Allen Lane, 2024) says in an article published in the Scientific American ‘GDP measures everything,’ as Senator Robert Kennedy once said, ‘except that which makes life worthwhile.’

The number does not measure health, education, equality of opportunity, the state of the environment or many other indicators of the quality of life. It does not even measure crucial aspects of the economy such as its sustainability: whether it is headed for a crash’. (https://www.scientificamerican.com/article/gdp-is-the-wrong-tool-for-measuring-what-matters/). Readers are referred to an article written by this writer titled GDP and GDP growth: Are they measures that really matter? (https://www.ft.lk/opinion/GDP-and-GDP-growth-Are-they-measures-that-really-matter/14-774796), to get a brief idea about statistics on a range of underlying disparities, inequalities and inequities amongst its people despite ‘developments’ visible to the naked eye.

However, at the end of the day, there are some fundamentals to consider irrespective of arguments for or against the contention that GDP alone being a measure of the economic health of a country. Amongst some of them are affordability by the entire population of a quality, modern universal healthcare, a good education system, that widens and deepens knowledge and prepares the younger generation to be more self-reliant, technological advancements including Artificial Intelligence and access to them, efficient and affordable transportation, quality housing for all, food security, absence of poverty and malnutrition, and ability for all to live in a free and non-violent, equal and equitable society. Clearly achieving some of these ideals need substantial amounts of monetary investments and therefore strategic, out of the box, economic thinking, policies and effective and efficient economic management becomes paramount.

While Sri Lanka has achieved a high standard in many areas such in education and health in particular, its overall economic management has not been satisfactory and in fact, if the country and all its people are to achieve a higher, sustainable quality of life, the entire country, not just its politicians, need to move towards a substantial paradigm shift in economic thinking. Sri Lanka rising to a higher economic platform in effect means a rise in GDP, and in 10 years it will depend on its economic growth rate between 2025 and 2035.

The GDP growth forecast for 2025 is 3-4%, and for 2026 is around 5%. With a starting point of $ 99 billion GDP in 2024, and assuming a sustained growth rate of around 4%, Sri Lanka’s GDP would be approximately $ 147 billion in 2035 and a per capita of $ 6300.00.

The question has to be asked whether this is sufficient for people to enjoy a better-quality of life and whether it is sufficient to renew confidence in the country amongst its current and future generations.

If one were to consider the current per capita GDP of $ 97,604.00 in Singapore, and if Sri Lanka is to achieve at least half of it ($ 45,000), Sri Lanka’s GDP would need to be approximately $ 990 billion This would require a tenfold increase from the 2024 GDP of $ 99 billion to achieve the desired per capita figure. Achieving such a figure would seem an impossibility based on where the country is placed now. However, the policy makers and the people should at least target to achieve the World Banks’s classification of a higher income country, which is a per capita in excess of $ 13,846, which is a tripling the country’s current per capita of $ 4,515.00. This would require an increase in GDP to approximately $ 300 billion from the current $ 99 billion.

The current trajectory of predicted GDP growth around 4-5% is not sufficient to give the people in the country anywhere near what is required to provide the economic and social ideals mentioned earlier. Whilst the Government has outlined plans to increase exports, earnings from tourism, and foreign investments, all of which are very commendable, this article wishes to suggest that a more dramatic paradigm shift is needed in economic thinking, strategy and management if the country is to move towards a high-income country. A few key areas are mentioned for purpose of discussion

Industrialisation and agriculture – Focussed on food security and exports

Value adding industrialisation for local consumption but more importantly for exports.

Further development of the fisheries industry, for local consumption and exports

Moving from traditional approaches relating to the tea, coconut and rubber industry and venturing into research based higher yields using less land, maximisation of water resources and replacing unproductive plantations with alternate crops,

Intercropping where two or more crops simultaneously in the same field to improve land use, increase yields, reduce risk, and enhance biodiversity. Coconut plantations are a good example where intercropping could be done with coffee, cocoa and other suitable crops between coconut trees.

Finance – Increased investments and foreign reserves

Increase foreign reserves by providing incentives to exporters and those remitting foreign exchange by buying the foreign exchange from them at a higher premium over normal bank interest rates.

Creating a government owned foreign reserve management entity (for a component of the government foreign reserves) on the lines of entities in Singapore, enabling it to invest in select fund management entities.

Creating a National Investment Bank with private sector equity participation and dedicated exclusively to engage in investments both locally and overseas

Private sector – Greater role for the private sector as the engine of growth

Consideration given to creating an exclusive ministry headed by a high-level cabinet minister to plan and promote growth of a sustainable private enterprise in the country.

Community Service Responsibility activity – providing tax benefits to companies engaging in priority projects of the government with a view to achieving long term sustainability of such projects.

Transforming diplomatic services to be commercially oriented to attract investments and promote exports

Appoint commercially astute diplomats (High Commissioners, Ambassadors) to key overseas postings to coordinate investment interests amongst potential investors, both citizens of the respective countries as well as amongst Sri Lankan expatriates in such countries.

Conclusion

Sri Lanka has to develop its economy in order to provide a fair, equitable, healthy, knowledgeable and dignified lifestyle for its citizens and its future generations. It needs to provide enough opportunities to them and foster their confidence in the country. While the country’s long history and its rich colourful culture are important in shaping the identity of the country, it also needs to think of the future and how it will provide a safe, secure and healthy environment for its people in a sustainable manner. Sri Lanka does not have to emulate any other country as the uniqueness of Sri Lanka in terms of its natural beauty, history and culture provides an enviable environment for it to grow its economy to provide a more quality future for its people. However, it needs resources, both financial and capable human resources to provide a future for its emerging generations. The country has to earn more, save more and equip itself more to provide the outcomes that are desired. Its thinking therefore has to be futuristic and strategic and not confined to yesterday’s glory days. Economic policies have to look towards the future and not be focussed on the past.