Category: Daily Financial Times

As I scanned the Earthset pictures from the successful Artemis II mission launched from the Kennedy Space Centre, alongside the story of Rise, the plush toy designed by an 8-year-old Ye, my mind went back to my short stay as a Fulbright Visiting Scholar at Rice University. As a strategic initiative, Rice University has donated land to establish the Johnson Space Centre and has initiated the first Space Science and Technology Department at a university in the USA. It is rumoured that the 1000 Acre land was given for $20. The connection today between NASA and Rice University is, in my view, a cosmic bond. This relationship enabled Houston to be the Space City of the United States. In the United States, universities are a hotbed of economic activity, and Rice is a leader. Universities take pride in knowledge generation and learning, from policy formulation to economic growth advocacy. I remember reading the student newsletter at Rice – the Rice Thresher celebrating the most recent state activity that Rice has strongly advocated – The Dementia Prevention and Brain Research Institute of Texas, a $ 3 billion investment. ‘Rice Thresher’ led me to explore why the student paper has been named as such. Texas is a key state for paddy cultivation in the United States, and the Texas economy benefits by $500 million from growing and processing paddy. Therein lies my lesson, multiple lessons in fact.

Big mismatch

Back at home, I am used to hearing the role of a university described solely as ensuring employable graduates, and to the oft-stated perception that this is not realised – the big mismatch between what is needed and what is produced. Measure the pulse of society: they see institutions as hot spots of unproductive issues and, increasingly, as institutions wasting taxpayers’ money. The basic expectation of the state is to look after the institution, providing funds from the state coffers and ensuring staff salaries. Sadly, the State does not consider universities’ output in the development process at all, and the university, too, has adjusted itself to this negative working model. This is the home truth I found so refreshingly different at Rice, and the realisation of how important that difference is to society and the economy at large. Now, Rice University is a Private University, yet its mindset and mandate remain relevant and focused on leading change. Today, being globally present and getting engaged is the way of working. ‘Momentous,’ the Rice Strategic Plan is a lesson to me.

The time available to me at Rice was not much; I had to settle for 75 days, to be precise. Receiving a Fulbright is an opportunity, and it is not guaranteed upon application. Having succeeded, I was determined to soak up lessons in all formats, as I am a strong believer that universities should be pioneering institutions and, when well directed, game-changers.

One expectation of the Fulbright is what you give and what the US gets back in terms of taxpayer money invested in supporting someone from another country at a US institution. I hope I met both requirements. Here I am being responsible for the first part – writing about what Rice taught me through practice.

Pioneering the nanotechnology revolution

The research environment is what really stood out to me. No matter how many students you graduate with excellent teaching and by reciting known knowledge from elsewhere, the university will not be a high-value institution nor a beacon for the economy and society if research is absent. In the US, the thrust is on ensuring that the university is a research university, and that is the most important differentiator. Rice has now made its mark in research by pioneering the nanotechnology revolution. It is interesting to wonder what made the journey to Rice by William Kroto from Exeter University to meet and work with Smalley and Curley. Kroto, the space-chemistry explorer, was aware that Smalley and Curl were using lasers to generate high-temperature plasma in their Rice labs. He collaborated to test one of his hypotheses, and the discovery of buckyball (Fullerene) led to the Nobel Prize for all three and the creation of a brand-new material space for more creative exploration. The world was placed on a different trajectory from that research.

The university was open to collaboration, and its work was known in faraway places. A researcher alone cannot succeed, and in today’s climate, the lone warrior working in isolation, holed up in a room, doing and going great is wishful thinking. The ecosystem is of utmost importance, and Rice is constantly pushing this boundary. I was fortunate to be present when the 1985-2025 celebration (C60 at 40) of nanoscience happened at Rice. The global nanotech researcher convergence at Rice for the celebratory event and the discussions on the past and the future were inspiring. This is not just a one-off event for Rice. The building I spent my time at Rice had the following plaque on its wall, showing that invention and discovery are things that Rice takes in its stride. I would say that what characterises research universities in the USA is the number of novel ideas and amazing progress that pours out of their portals. The companies that resulted from spinoffs and spinouts, taking the intangibles, then go on to make a tangible difference.

I noted the encouragement given to early-stage undergraduates to engage in ongoing research. The presence of a 2nd-semester chem eng undergraduate immersed in a top-tier research group that shared resources equally left a deep impression. Upon my return, I was amazed to see Rice on LinkedIn showcasing the same undergraduate for his pioneering research work on lithium battery recycling. Opening research to all levels and running well-resourced research teams in creative spaces is a surefire recipe for success, as Martin has aptly shown. It is said that 80% of Rice Owls engage in research at the undergraduate level. I witnessed undergraduates from all disciplines converging at OEDK (Oshman Engineering Design Kitchen) to work on industry problems, funded by industry. Failure is not an option made famous by Apollo 13 Mission Control at Johnson, applies to all those who take on a problem. There is no rote learning, no regurgitating of definitions and set answers. I sat through a few lectures at different levels, and every 55 minutes, they went from basics to applications in a content-rich manner.

Support for research

Support for research at Rice does not stop at the bench scale and papers. The complete value chain for bringing ideas to market and valorising research is present, as research without application will not bear fruit. Rice guidelines on disclosures and patenting, support from a professional Tech Transfer Office, Incubation space for internal students (Liu Idea Lab for Innovation and Entrepreneurship), and space for collaborative workspaces with external partners (ION district) are all available in the Rice innovation ecosystem. The emphasis on transformative challenges is where one always spends energy, as evidenced by listening to the Moonshot Caption of X (initially Google X), Astro Teller, who has strong ties to Rice. The imaginative projects – named as moonshot projects- going through the mill at X were sufficient to indicate that the next level of competitiveness was always taking place with such enterprising endeavors. There appears to be strong, seamless connectivity with university students. It is this mutual interdependence that breeds success. The last thing you hear is poor industry-university collaboration!

Another interesting fact noted was the extent of support Rice was continuously receiving through endowments and grants. Wherever you go, you will always see a plaque celebrating a donor. Yes, the university itself had been an endowment – explaining why it is called Rice University. The Rice endowment fund is one of the richest among US universities today, valued at around $ 8 billion. The most significant in that part of the United States. The founders had the idea of ensuring an institute with a unique visibility housed in noble architecture. As you approach Rice, you see that. It is on record the statement of Edgar Lovett, the desire to establish on the campus a group of buildings conspicuous alike for their beauty and for their utility, which should stand not only as a worthy monument to the founder’s philanthropy, but also as a distinct contribution to the architecture of the country. Reading this, as well as experiencing it, I remembered Ivor Jennings’s objective when he established the University of Peradeniya. He had expressed the very same intentions, but alas, in our case, that was not to be; cost-benefit and least-cost allocations only satisfied utility. The most beautiful campus of that size in the world, as Ivor envisaged, lost out, with only the natural endowments remaining. A place of scholarship should be able to nurture creativity, and that is not possible when you purchase a chair solely for its basic function and treat almost everything else with a similar mindset. Such places are spaces of torture rather than spaces of creativity. When one thinks, perhaps the results we see are then not surprising, as they must be correlated to the suffering.

With all these pluses, Rice still has some distance to cover when it comes to ranking within the US, which demonstrates how universities aggressively follow research-led growth. Even with pioneering landmark developments and with constant engagements, one senses how much one must do to stay on top. Rice recently rose considerably in the global QS rankings, placing 122nd globally and 29th in the US. Rice, I see, is well set to lift off in Houston.

Chamika Heenatigala was the hero as he single-handedly guided Sri Lanka Under-19 to a series-clinching last-ball win by one wicket against India Under-19 in the third and final Youth ODI series played at the Mahinda Rajapaksa Cricket Stadium, Hambantota yesterday.

The win saw Sri Lanka U19 seal the Youth ODI series 2-1 with back to back wins after they had lost the first match to India U19 by four wickets. Sri Lanka U19 won the second match by eight wickets.

Chasing a target of 291 for victory Sri Lanka slumped to 215-8 in 40 overs, but Heenatigala who has proved time and again to be the team’s crisis man once more came up with another of his heroic performances to guide Sri Lanka to victory.

The left-hander from Mahanama College, Colombo was on 35 when the eighth wicket fell and he had only the two tailenders to partner him. Sri Lanka at this stage required 76 off the final 10 overs and the game was very much in favour of India.

However, Heenatigala farmed the strike magnificently so that Gimhan Mendis (23 off 22 balls, 1 four, 2 sixes) helped him add 61 valuable runs off 47 balls for the ninth wicket. When Mendis was out at 276, Sri Lanka were still 15 short with 13 balls remaining. With 11 needed off the final over and last man Lathendra Akash at the wicket, Heenatigala kept a cool head to hit the second ball for four, the fifth for a six and stole a single off the final ball to clinch victory for his team. Heenatigala finished unbeaten on a magnificent 84 scored off 68 balls with the aid of 7 fours and 2 sixes.

Before Heenatigala made his appearance, Senuka Wekunagoda kept the run chase alive with a 59-ball 67 (10 fours, 1 six). Sri Lanka’s innings was disrupted to some extent in the 34th over by off-spinner Anmoljeet Singh who struck twice off successive balls when the innings was moving smoothly at 190-5. He finished as India’s most successful bowler with 4/42.

Earlier India invited to bat first, put up a challenging score of 290-8. Left-hander VK Vineeth played a durable knock of 131 off 136 balls (13 fours, 3 sixes) and with Lakshya Raichandani (61 off 63 balls, 7 fours), the pair added 108 off 117 balls for the third wicket. Sri Lanka however managed to contain the rest of the batting to keep India under 300. Sethmika Seneviratne, the right-arm seamer from Trinity College, Kandy bowled tidily to take 4/41 off 10 overs.

The two teams will play a two-match 4-day youth test series commencing 13 July at Galle.

– [ST]

Scores:

India (U19) 290-8 (50) (VK Vineeth 131, Lakshya Raichandani 61, Shavin Vinodh 26, Sethmika Seneviratne 4/41, Gimhan Mendis 2/63)

Sri Lanka (U19) 291-9 (50) (Dimantha Mahavithana 22, Senuja Wekunagoda 67, Kavija Gamage 29, Kithma Withanapathirana 31, Chamika Heenatigala 84*, Gimhan Mendis 23, Shavin Vinodh 3/41, Mohit Ulva 2/66, Anmoljeet Singh 4/42)

The Asia Pacific Institute of Information Technology (APIIT) inaugurated the APIIT School of Hospitality and Tourism in collaboration with Hotel and Tourism Management Institute (HTMi) Switzerland on 17 June 2026 at its Baybrook Campus, expanding opportunities for hospitality education in Sri Lanka through a curriculum that combines Swiss hospitality expertise with extensive industry exposure.

Her Excellency Dr. Siri Walt, Ambassador of Switzerland to Sri Lanka and the Maldives, led the ceremonial presentation of enrolment letters to the inaugural cohort. Mr. Nishanth Suri, International Academic Manager, HTMi Switzerland and members of the Swiss Embassy attended the launch. APIIT Chairman, Mr. Bandula Egodage, the APIIT Board of Management, Head of School Mr. Kasun Abeynayaka, faculty members and representatives from the Commercial Credit Academy were also in attendance.

A Message from the Ambassador of Switzerland to Sri Lanka

‘As we celebrate the 70th anniversary of diplomatic relations between Switzerland and Sri Lanka, the launch of this programme marks a further highlight of our partnership. Hospitality is a field in which our nations share deep interests; Switzerland’s training is renowned worldwide, and I am confident students here will benefit greatly from the partnership between HTMi Switzerland and APIIT. This marks the beginning of a rewarding journey. I wish the inaugural cohort every success in their careers.’

Faculty: Industry Blended Expertise

The faculty brings together experienced academics and hospitality professionals. This model blends rigorous theory based on evidence based research with up to date operational practice: students receive instruction in management theory, culinary techniques, and front office operations, all augmented by real world case studies and masterclasses from senior practitioners.

Curriculum: Designed for Leadership

The curriculum is built to deliver progressive academic qualifications alongside sustained practical experience.

Pathways: Certificate ? Diploma ? Higher Diploma ? BSc (Hons) in International Hospitality Management.

Entry routes: After O/Ls (four year degree) and After A/Ls (three year degree) pathways.

Structure: Each year includes a 24 week taught semester plus a six month paid internship, ensuring graduates accumulate 18-24 months of validated workplace experience.

Guided by the motto ‘Come as a student, leave as a manager,’ the School places a primary emphasis on employability. This is realised through mandatory paid internships at 4-star and 5-star properties, dedicated career coaching (CV writing, interviews, and personal branding), and rigorous placement tracking to ensure students are job ready for rapid career progression.

Language Training: A Bridge to Global Mobility

Recognizing that global hospitality requires cross-cultural fluency, the School has embedded intensive Professional Language Training into its core curriculum. Vocational modules focus on service-specific communication and cultural awareness, ensuring graduates can operate confidently in European and global markets.

An Immersive Training Ecosystem

The inauguration showcased a comprehensive training ecosystem, including a residential training hub at Bolgoda Lake mirroring HTMi Switzerland’s immersive campus hotel experience in Sörenberg, Switzerland. Industry grade culinary labs and AV equipped teaching spaces form the backbone of the “Campus-Hotel” model, immersing students in real-world operations from day one.

Intended Partnerships

The School is formalising strategic partnerships across several key areas:

Service and Grooming: Alliances to build service poise and professional presentation.

Scholarships: Funding partners to reward high-potential candidates and widen access.

Industry Placements: Pipelines with premium hotel operators for high quality paid internships.

Language and Culture: Collaborations with international institutes for accredited Language training.

Student-Crafted Fellowship

The inauguration concluded with a session of fellowship and refreshments, which were hosted by the students of the APIIT School of Hospitality and Tourism. This provided a live demonstration of the students’ emerging culinary and service talents, setting a practical tone for the excellence the school aims to achieve.

Engagement and Enrolment

The enrolment process is highly structured, incorporating private campus tours, one on one faculty interviews, and comprehensive placement testing. Prospective students and industry partners are invited to contact APIIT Sri Lanka directly for intake schedules, application procedures, and upcoming programme start dates.

Los Angeles: The second quarter-final of the 2026 FIFA World Cup 2026 promises to be one of the tournament’s biggest spectacles as Spain and Belgium battle for a coveted place in the semi-finals. Scheduled to take place at SoFi Stadium in Los Angeles, the clash pits one of football’s most technically gifted sides against one of Europe’s most experienced and dangerous teams.

Both nations have displayed quality, resilience and attacking brilliance throughout the tournament, making this one of the most eagerly anticipated matches of the last eight.

Spain have looked every bit like genuine title contenders. Under their possession-based philosophy combined with aggressive pressing, La Roja have controlled matches from start to finish.

Spain opened their knockout campaign with a convincing 3-0 victory over Austria before overcoming neighbouring rivals Portugal 1-0 in a tense Round of 16 encounter. Mikel Merino’s dramatic late winner underlined Spain’s patience and ability to find decisive moments against elite opposition. Defensively, Spain have been among the tournament’s strongest teams, frustrating opponents with an organised back line and intelligent midfield control.

The Spanish attack revolves around teenage sensation Lamine Yamal, whose creativity, pace and fearless dribbling have troubled every defence he has faced. Whether cutting inside from the wing or creating chances for teammates, Yamal has become Spain’s biggest attacking weapon.

Captain Rodri continues to dictate matches from midfield with exceptional passing, tactical awareness and defensive discipline. His ability to control possession allows Spain to dominate the tempo.

Wide forward Nico Williams provides explosive pace on the flank, while experienced striker Álvaro Morata remains a constant goal threat inside the penalty area. Goalkeeper Unai Simón has also enjoyed an outstanding tournament, producing crucial saves while extending an impressive World Cup clean-sheet streak.

Belgium entered the tournament with questions surrounding their ageing ‘Golden Generation,’ but they have answered critics in spectacular fashion.

After surviving a difficult group stage, the Red Devils edged Senegal 3-2 before producing one of the tournament’s most complete performances by defeating the United States 4-1 in the Round of 16. Belgium’s attack has become increasingly dangerous, while their experience has proved invaluable in knockout football.

Goalkeeper Thibaut Courtois has once again demonstrated why he is regarded as one of the world’s best. His commanding presence and crucial saves have kept Belgium alive during difficult moments.

Creative maestro Kevin De Bruyne remains Belgium’s heartbeat. His vision, passing range and ability to unlock tight defences could be decisive against Spain’s organised midfield.

Young winger Jérémy Doku provides explosive pace and one-on-one ability, while striker Romelu Lukaku continues to deliver important goals and physical presence. Rising star Charles De Ketelaere has also emerged as one of Belgium’s standout performers after an impressive display against the United States.

The contest is expected to be a fascinating tactical duel.

Spain will aim to dominate possession through Rodri’s midfield control, stretching Belgium with quick passing combinations and overlapping full-backs. Their high pressing will attempt to force Belgium into mistakes before launching rapid attacks through Yamal and Williams.

Belgium, meanwhile, are likely to remain compact defensively before breaking quickly through De Bruyne’s precise passing and Doku’s pace. Lukaku’s physicality will test Spain’s central defenders, while Courtois’ experience could prove vital if Spain create sustained pressure.

Victory will send either Spain or Belgium into the World Cup semi-finals, where they will face the winner of the quarter-final between France and Morocco. Spain are chasing another World Cup title to add to their 2010 triumph, while Belgium are determined to finally convert years of talent into the nation’s greatest football achievement.

Spain enters the match as slight favourites thanks to their defensive solidity, midfield dominance and outstanding young talent. However, Belgium’s experience, counter-attacking threat and match-winning individuals make them more than capable of causing an upset.

If Spain can control possession and limit Belgium’s transition opportunities, they may edge a tightly contested encounter. But if De Bruyne, Doku and Lukaku find space on the break, Belgium possess the firepower to reach the semi-finals.

With world-class stars on both sides, this quarter-final has all the ingredients to become one of the standout matches of the 2026 FIFA World Cup.

Sri Lanka is a country that in the last 70 years received the facilitation of the World Bank, Asian Development and many other multilateral financial institutions to build an empowering banking and finance landscape to create a thriving SME entrepreneur ecosystem in Sri Lanka. The reality is thanks to solid Central Bank of Sri Lanka regulatory mechanism, we have a strong and vibrant banking and finance landscape solidly built in Sri Lanka, however we cannot say Sri Lanka have a strong and sustainable SME entrepreneur ecosystem in Sri Lanka that is enriching the diversity of economic initiatives across the country, but a struggling, lackluster and marginalised SME entrepreneur community.

In the journey mapping of any entrepreneur and enterprise, micro, small, medium and commercial, need to showcase the DNA of the enterprise and it is unquestionable the DNA need to reveal three most relevant essences, firstly the Commercial Viability in the short, mid and the long term, secondly scalability of the enterprise in the short, mid and the long term, thirdly and finally is sustainability and succession planning in the short, mid and the long term. Even if you take the global measure of journey mapping of entrepreneurs, short term could be one to five years, mid could be five to twenty years and the long is twenty five years and beyond.

If we take a very clear snapshot of the SME entrepreneur ecosystem in the last 100, years, though we very proudly boast as the engine of the economic growth and the largest employer, there is no way we can the state country’s economic transformation is driven by a thriving SME Industry, this is despite much support facilitated by multilateral agencies like, World Bank, Asian Development Bank and other international facilitators under the direction Central Bank of Sri Lanka (CBSL) for creating access to banking and finance by the commercial banking network in the country in the last 70 years.

Sri Lanka SME community fall short of journey mapping of commercial viability, enterprise scalability, business sustainability and succession planning

There are numerous engagements time to time, through government mechanisms connected various key departments such, industries development boards, but what we have witnessed in the last few decades there have been only bits pieces and here and there, and time to time blow hot and blow cold nature of the engagements. Unfortunately, seeing the Big Picture and seeing Eye to Eye in creating a thriving Entrepreneur ecosystem, no one takes the responsibility with accountability to reach critical journey milestones to bring life, light and energy to genuinely empower Sri Lanka’s SME entrepreneur ecosystem.

Whilst recognising the all good work done by the banking and finance sector in creating access to banking and finance for the SME sector under the facilitation CBSL, results and the impact far below by any global or that matter South East Asian vibrancy of the SME industries. Despite many talk shows, summits, forums and conferences in the last 50 years, there is no collaborative effort by all the stakeholders, in the private, public, and banking and finance, laying a strong foundation, and building walls to facilitate collaborative ownership for transformation of the SME sector. Further accessibility of the banking and finance sector and affordability of their financial services is a major setback, and in particular with very high interest rates which is between 14% to 24 %, most probably highest in the region.

SMEs themselves have to take the major responsibility to for their predicament, mainly with a tunnel vision, they are trying to steer their SMEs to development and growth on one trajectory which has created major challenges in the product refinement , market development and employability of skill labor force are much needed to create greater commercial viability, scalability and sustainability. In the journey map of a serial entrepreneur, accessing, measuring and creating timeliness of commercial viability in the mid and the long term, entrepreneur scalability, mid and long term and sustainability and succession planning in the mid and the long term is an absolute necessity. Investment in research, development and innovation is key to create SMEs to graduate from small to medium and then commercial levels for commercial viability, scalability and sustainability from small to mid, and then into commercial level. An investment in the research, development and innovation cannot be driven through bank loans or finance or self-finance but needs the engagement and the inflow of patience and responsible capital with a ten year time horizon. Sri Lankan SMEs need to understand the value and importance of equity investor capital flowing into their enterprise, journey firstly private equity, then on maturity stage walk towards the public listing. It’s pathetically disappointing that in the last fifty years not even a handful, but less than five SMEs, have gone toward initial public listing.

Those who put food on the table are not on the talk shows

One of the banking giants I have had the privilege of working under very closely is Rienzie Wijethilake, a legendary banker who was the managing director and later Chairman who made several initiatives for the country’s SME sector development through HNB ( Hatton National Bank). I join the HNB in the year 1990, and HNB had only 22 branches, Reinzie Wijethilake had ten year vision for the bank and for the country, when I retired in 2013, HNB reached 250 branches, I was responsible for branch network management, retail and development banking, whilst I was the Deputy General Manager, carried the vision of Rienzie Wijethileke into execution along with my other colleagues in the corporate management of the bank for nearly 25 years. This was the most enriching time in my corporate career, travelling across the whole country in facilitating and empowering over 200,000 entrepreneurs in the micro, small and medium space. During this period I have witnessed the struggles and tribulations of the Sri Lankan MSME sector go through.

One of the pioneering initiatives, I wanted to the pursue as the next stage of my corporate life was to embark of on creating a platform for ‘access to private equity for the MSME sector’, that is where I pioneered and co-founded a TV reality show with a friend of mine, got around twenty high net worth corporate leaders in the country to partner and collaborate with me for the launching the first ever TV reality show for social entrepreneurs and impact investors. The program ran for two seasons on Independent Television Network (ITN) under the brand name, ‘Ath Pavura’ (Wall of Tuskers). This program became the best business program in Sri Lanka conducted on a TV network, and for the very first time in the country a trailblazing initiative to create access to private equity infusion to power entrepreneurship was innovated, created and launched very successfully. Nearly 200 entrepreneurs across the country were made ready for equity investment, out of which nearly 50 entrepreneurs received investments as equity. This program was greatly appreciated and received many local and international recognitions, unfortunately we had to put the program on hold due to Covid-19 two years and thereafter the economic setback faced by the country.

Creating dynamic SME ecosystem and building impact investment landscape for Sri Lanka

What is significantly needed to create a thriving SME sector is to facilitate the creation of a strong social and commercial entrepreneur ecosystem and to strengthen that scientifically built Impact Investing landscape in Sri Lanka. The Banking and Finance sector do their role to support the SMEs, but 98% of their funding is depositor’s money, therefore their Risk Matrix does not permit them to move into equity investment space. Therefore there is an unbelievably huge vacuum that is there needed to be filled by facilitating in creating access to private equity has to be done by investors with the courage of their convictions, patience and responsible capital with a commitment of 5 to 10 year investment time space.

Lanka Impact Investing Network (LIIN) which I founded ten years ago not only launched the first TV Reality program for the country connecting entrepreneurs to investors , in the last ten years done many initiatives, engagement and ecosystem creation with multiple international partners, LIIN is pioneering the creation of the first ever ‘Impact Investing fund ‘to facilitate equity investment on SME entrepreneurs across the country. LIIN will be embarking on one of the biggest initiatives in Sri Lanka and South Asia called ‘On Eagle’s Wing – A reality show in all three languages as a key platform for creating access to private equity to MSMEs. LIIN is now connected to Global Steering Group Impact Investing (GSG Impact Global) , the largest impact investor network and is well poised to facilitate global impact investors to put their foot holds in Sri Lanka. Unlike many others who only promise good days are ahead, LIIN has put food on the table.

Vision to power Sri Lanka’s SME ecosystem hugely now depends on mapping the journey of the entrepreneurs for scientific transformation of SME to commercial viability in the short, mid and the long term. Secondly, enterprise scalability in the short, mid and long term and finally enterprise sustainability and succession planning in short, mid and long term. Building a mechanism, a structure and environment to flow impact capital and diversity of shapes and sizes is the way to walk and not just SME talk shows.

(The author is a senior commercial banker, with global expertise in the retail and development banking, financial inclusion, social entrepreneurship and impact investing and Founder and Chairman of Lanka Impact Investing Network, Co-Founder of ‘Athpavura’ reality show, and founder of ‘On Eagle’s Wing’ reality show)

HR in Sri Lanka is at an inflection point – reshaped by technology, changing workforce expectations and new organisational realities, and being asked to lead rather than simply respond. It is against this backdrop that the Association of Human Resource Professionals (AHRP) will mark its 25th anniversary on 16 July, at Cinnamon Life, Colombo, under the theme “Shaping the Future of Work and Organisations.”

The evening is built for the people at the centre of that shift: HR professionals themselves. It brings together the founding pioneers who built the profession, the leaders shaping it today, and the emerging talent who will carry it forward – anchored by a keynote and panel discussion tackling the theme head-on, making this less a retrospective than a working conversation on where HR goes next.

The evening’s Chief Guest will be Prime Minister Hon. Dr. Harini Amarasuriya, who will deliver a special address reflecting on the role of human capital in Sri Lanka’s economic and social progress.

Twenty-five years of raising the bar

Since its founding in 2000, AHRP has grown into Sri Lanka’s leading body for HR practitioners, built around a simple conviction: that HR could move from the back office to the boardroom. What began as a small community of practitioners has, over 25 years, become the professional home for HR leaders across the country’s corporate, public and non-profit sectors.

AHRP’s HR Awards, conducted under international guidelines, have long recognised excellence in the field and set the benchmark for the profession in Sri Lanka. Its Human Capital Summits – convened in 2016, well ahead of the wider conversation on future-ready workforces, and again in 2024 in response to a world reshaped by technology and disruption – have placed AHRP at the centre of national thinking on skills, capability and employability, working alongside the National Human Resource Development Council to help shape the country’s broader skills agenda.

That thinking has been sharpened through close collaboration with global partners, including the world’s largest HR professional body, through joint platforms such as the HR Think Tank, which since 2019 has brought senior HR leaders together to work through the profession’s most pressing challenges – from post-pandemic people practices to the realities of the hybrid workforce. AHRP has also built a capability development framework informed by conversations with 25 leading corporate CEOs, and has continued to invest in the next generation through Elevate U and its student and youth leadership programmes, ensuring that as the profession evolves, its pipeline of talent evolves with it.

An evening for all of Sri Lanka’s HR community

The anniversary celebration is structured as a journey through AHRP’s own history, with a specially produced anniversary film and tributes to the pioneers and past presidents who built the profession – best experienced live, on the evening itself.

The evening’s centrepiece will be a keynote address by LinkedIn Director Talent Solutions – South India and Sri Lanka Ankit Khanna followed by a panel discussion on the theme, “Shaping the Future of Work and Organisations,” featuring AIA Insurance Sri Lanka Director/CEO Chathuri Munaweera, SHRM Senior Advisor and Head – Leadership and HR Transformation Shaakun Khanna, BCG Managing Director and Partner Anushman Upadhaya and LinkedIn Head of Enterprise Sales – South India, Sri Lanka and Maldives Guna Grace, moderated by Hemas Holdings PLC Chief People and Corporate Affairs Officer Ravi Jayasekera. An open Q and A session will follow, giving attendees the opportunity to engage directly with the panel, before the evening closes with dinner – in keeping with AHRP’s intent that this remain, above all, an evening for HR professionals themselves.

Looking ahead

At 25, AHRP marks this milestone not with nostalgia, but with intent – reaffirming its commitment to shaping the future of work and organisations in Sri Lanka, and inviting the country’s HR community to be part of the journey from 25 years to 50.

AHRP President Thushara Jayawardana said: ‘At 25, AHRP is looking ahead with clear purpose. HR can no longer react to change. It must lead to it. The future of HR lies in bringing business, technology and people together with courage, conviction and purpose. That is the role AHRP must continue to play for Sri Lanka.’

The Association of Human Resource Professionals (AHRP) is Sri Lanka’s leading body for HR practitioners, established in 2000. Over 25 years, AHRP has worked to elevate HR practice, connect Sri Lankan organisations to global standards, and shape national conversations on skills, capability and the future of work.

Event sponsors

Title Sponsor: Linkedin , Diamond Sponsor: i-context Ltd., Gold Sponsor: Singer (Sri Lanka) PLC, Silver Sponsor: Sentiva LLC, Strategic Coaching and Training Partner: Training Consortium Ltd., Strategic Banking Partner: Commercial Bank PLC, Strategic Partners: MiHCM, Sysco LABS Sri Lanka, Associate Partners: Oracle, Hayleys PLC, Thyaga and RewardzHub.Al, Colombo Stock Exchange, Supporting Partner: Hayleys Fentons Ltd., John Keells Holdings PLC, MOVA, Print Media Partner: DailyFT and Electronic Media Partner: The Maharaja Media Network.

Sri Lanka’s long-awaited Rs. 3.5 billion global destination branding campaign is on track for launch by the end of this year or early 2027, with tourism authorities preparing to roll out interim market-specific promotional campaigns from next month to sustain international visibility ahead of the peak winter travel season.

Tourism Deputy Minister Prof. Ruwan Ranasinghe yesterday said the global campaign is progressing as planned, with preparatory work now entering its final stages.

Ahead of the full international rollout, Sri Lanka Tourism will launch targeted digital marketing and public relations campaigns in Germany, the UK, Australia, and New Zealand in August before expanding to India, China, and Russia in September. Campaigns targeting France, South Korea, and the Netherlands will follow thereafter.

‘We are moving ahead with interim market-specific campaigns while preparations for the global destination branding campaign continue. The objective is to maintain Sri Lanka’s presence in key markets until the global campaign is launched,’ Prof. Ranasinghe said.

Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Buddhika Hewawasam described the initiative as a major milestone in repositioning Sri Lanka in the global tourism marketplace.

He said the campaign is strategically designed to help the country achieve its long-term goal of attracting 5 million tourist arrivals and generating $ 8 billion in tourism earnings by 2030.

‘The upcoming campaigns represent a significant shift from isolated market promotions to a synchronised global marketing strategy targeting high-value source markets ahead of the crucial winter travel season,’ Hewawasam said.

To support the international rollout, the SLTPB has completed or is finalising procurement for several high-value overseas marketing contracts.

SLTPB Managing Director Sanjaya Niroshan said procurement for the Australia and New Zealand campaigns has been completed, with contracts expected to be awarded next week.

He said procurement for Germany and the UK is in its final stages, enabling campaigns in those markets to commence by early August.

‘For France, South Korea, and the Netherlands, bids have already been called. The tenders are expected to close during the first week of August, allowing evaluations to be completed and contracts awarded in September,’ he added.

Niroshan also revealed that the SLTPB is receiving technical assistance from the World Bank to implement the global branding campaign, acknowledging that the Bureau staff lacks prior experience in executing a campaign of such international scale.

‘We do not have previous experience in conducting a campaign of this magnitude. Therefore, with World Bank support, we are recruiting specialist consultants to ensure international best practices are followed,’ he said.

The consultants will cover key areas including legal services, digital marketing, and other specialist disciplines required for the campaign.

Addressing recent industry concerns over procurement timelines, Niroshan clarified that the proposal to shorten bidding periods from the standard 42 days to 14 days applies only to the local interim promotional campaigns that require immediate activation to capture upcoming travel booking windows.

He said the SLTPB recently sought Cabinet approval for the expedited process, but the Procurement Committee advised the Bureau to continue following the standard 42-day procurement procedure.

‘The expedited process is intended only for the local campaigns where timing is critical. For the larger international campaigns, we will continue with the normal procurement process to ensure transparency and international competition,’ he explained.

Tourism authorities believe the dual-track approach will allow Sri Lanka to respond quickly to immediate marketing opportunities, while maintaining robust procurement standards for its flagship global destination branding campaign.

Sri Lanka has earned a visible degree of stability. Inflation has come down. Queues have disappeared. Essential supplies are available. Some confidence has returned. These achievements matter, and those who worked for them deserve recognition.

But stability is not the same as resilience.

A country can look calm on the surface while remaining deeply vulnerable underneath. Sri Lanka is still exposed to foreign exchange shortages, external debt repayments, import dependence, global shocks, climate risks, and sudden shifts in investor confidence.

This is not a matter for economists, the Government, or exporters alone. It touches the future of every citizen.

If Sri Lanka faces another major foreign exchange shock, no business, professional, investor, exporter, importer, employee, or household will remain untouched. A business cannot float comfortably when the whole ship is sinking.

That is why the country must act now.

Not after another crisis. Not after another long study. Not after every possible idea is collected, analysed, and filed.

Sri Lanka must immediately begin activating every responsible and practical foreign exchange inflow path that can be opened within the shortest possible time.

Some ideas will be large. Some will be small. Some will produce results quickly. Some will take longer to mature. But if an idea brings a positive Net Foreign Currency Contribution (NFCC), or saves foreign exchange, it deserves urgent attention.

The clock is already ticking. Future loan repayments, global uncertainty, climate risks, and market confidence will test Sri Lanka again. The question is whether we use this period of stability merely to feel comfortable, or whether we use it wisely to build resilience before the next shock arrives.

Sticking to the same old failed approaches will be futile

Sri Lanka has never suffered from a shortage of discussions, committees, policy papers, or conference speeches. What we have lacked is the speed and discipline to convert practical opportunities into working foreign exchange channels.

For years, we have repeated phrases such as ‘export more’, ‘attract investment’, ‘develop tourism’, and ‘improve competitiveness’. These are all correct. But they are incomplete unless someone removes the obstacles that prevent real transformation from happening.

An exporter does not grow because a slogan is repeated.

A hospital does not attract foreign patients because medical tourism is mentioned in a policy paper.

A local manufacturer cannot supply an export company if the tax system, approval process, and procurement rules make imports easier than local sourcing.

A professional does not win a foreign client if payment channels, certification, credibility, and market access are unclear.

Real growth happens when a clear path is facilitated by removing obstacles.

Entrepreneurs are like seeds. Even the best seed cannot grow in hard, dry, infertile soil. The role of Government and policy is not to shout at the seeds to grow faster. The role of Government and policy is to make the soil fertile.

That is what I mean by facilitation. It means listening to those who see opportunities. It means identifying where foreign exchange can be earned or saved. It means removing practical barriers without compromising necessary safeguards. It means giving responsible officials authority to solve problems, not merely forward files. It means measuring success by activated transactions, not by meetings held.

Move in two tracks: activate immediately and prioritise continuously

Sri Lanka should not wait until every possible opportunity is gathered, studied, ranked, and perfected. Time is too short for that.

The country needs a two-track approach.

1.Immediate activation: Act immediately on the opportunities that are already visible, practical, and capable of producing early results.

2.Continuous pipeline: Keep identifying, screening, prioritising, and adding new opportunities as they emerge, assigning each to an activation cell with a strict deadline.

This is more realistic than waiting for one perfect national master plan. It allows the country to move while learning. It allows quick wins to begin early, mitigating possible future FX challenges. It also allows more complex opportunities to be developed in parallel.

Listen to the public: open a national window for FX proposals

Many practical ideas never reach the right decision makers. Entrepreneurs, doctors, engineers, academics, bankers, exporters, diaspora members, young professionals, and ordinary citizens may see opportunities that officials cannot see from inside the system.

But without a clear door to walk through, those ideas remain private conversations.

Sri Lanka should therefore create a national platform for proposals for FX inflow paths: one well-publicised channel through which anyone can submit a practical proposal for a new path for resilience or foreign exchange inflow.

This must not become another passive suggestion box. It must be a structured mechanism that receives and screens proposals, tests the strongest for speed, feasibility, risk, and NFCC, and then hands them to small activation cells with clear responsibility and deadlines.

Given its national role in investment facilitation and inter-agency coordination, the Board of Investment (BOI) is a natural institutional home for such a window, supported by relevant ministries, the Export Development Board, Central Bank, Inland Revenue, Customs, Immigration, professional bodies, chambers, and private-sector practitioners.

Sri Lanka’s next great foreign exchange pathway may not come from a ministry file or a foreign consultant’s report. It may come from a teacher, hotelier, exporter, doctor, engineer, banker, diaspora member, or young professional who sees a practical opportunity waiting to be facilitated.

Sri Lanka must create a way to hear them.

Use Net Foreign Currency Contribution as the national test

Sri Lanka must now think beyond gross numbers.

A billion dollars of export revenue does not mean a billion dollars remains in the country. If imported inputs, foreign service payments, profit repatriation, loan repayments, and other external outflows are high, the net benefit may be much smaller.

Meanwhile, an activity that earns a smaller gross amount may be far more valuable if it has low import content and high local value addition.

This is why Sri Lanka needs a national discipline based on Net Foreign Currency Contribution.

Every proposal should be tested against one simple question:

After all foreign exchange outflows are deducted, how much real foreign exchange remains with the country?

This test can change the way we think about exports, tourism, investment, infrastructure, services, trade agreements, and local manufacturing. It will also help Sri Lanka avoid celebrating headline numbers while ignoring real external vulnerability.

Some examples of practical paths that can be activated

The following are just a few examples of the type of practical, actionable foreign exchange paths Sri Lanka must identify, facilitate, and activate. Many more ideas should be welcomed through the proposed national window for proposals.

1. Surgical-medical tourism

Sri Lanka has skilled doctors, internationally accredited private hospitals, a strong hospitality sector, and recovery-friendly surroundings. Yet surgical-medical tourism remains far below its potential.

This can be activated through a national surgical medical tourism facilitation mechanism connecting hospitals, hotels, airlines, immigration, overseas patient-referral networks, insurance channels, and post-treatment care providers. The objective is not another promotional campaign. It should be a transaction-ready system where a foreign patient can confidently choose Sri Lanka, receive treatment, recover safely, and recommend the country to others.

2. Wellness, recovery, and long-stay care tourism

Tourism should not be viewed only as short-stay holidays. Sri Lanka can develop higher-value income from wellness, post-treatment recovery, elder care, retirement stays, Ayurveda-linked wellness, and climate-friendly long-stay programmes.

Many countries have ageing populations, high medical costs, stressful lifestyles, and cold climates. Sri Lanka has a natural advantage if these services are properly organised, regulated, and promoted with credibility.

3. Re-export and entrepôt trade

Sri Lanka’s location has been praised for decades. But location alone earns nothing unless business can move smoothly.

Many export-oriented enterprises operating under investment approvals are largely restricted to manufacturing only for direct export, even though they operate in customs-bonded free trade zones.

The country must make it easier for such companies, and for new entrants, to import, store, repack, assemble, test, certify, bundle, and re-export goods with minimum friction and proper automated safeguards, thereby enabling enterprises in Sri Lanka’s free trade zones to become thousands of export trading hubs, generating a positive NFCC.

A well-facilitated re-export platform can also bring foreign exchange through logistics, warehousing, handling, packaging, value addition, insurance, finance, and technical services. It allows the country to participate in global trade flows using speed, location, service quality, and trust, while deepening local capabilities and ultimately leading to sophisticated product manufacturing.

4. Local sourcing by BOI exporters

If a BOI export manufacturer can import an input easily but faces tax or procedural disadvantages when buying the same input locally, the country loses twice.

First, foreign exchange leaves the country through imports. Second, local industry loses the opportunity to grow by supplying export manufacturers.

Sri Lanka must remove such barriers and make local sourcing by exporters as easy as importing, provided proper safeguards are in place.

This is not old-style import substitution. This is export-linked import replacement. It increases the net foreign currency contribution of exporters while strengthening domestic industry. It can also be implemented through administrative reform rather than heavy Government spending.

5. Professional service exports

Sri Lanka has skilled professionals who can serve foreign clients without requiring heavy imports. Engineering design, accounting, architecture, legal-process support, software, technical documentation, compliance support, and back-office functions can all generate foreign exchange.

This can be activated practically by creating an export-ready professional services registry, simplifying foreign payment and invoicing procedures, supporting recognised quality and data-security certifications, and directly matching Sri Lankan service providers with foreign buyers.

The first pilots can begin with areas where Sri Lanka already has capability: engineering design support, BIM and CAD documentation, accounting back-office work, software support, compliance documentation, and technical writing.

6. Regional repair, refurbishment, testing, and certification hubs

Sri Lanka has engineering and technical skills, but has not sufficiently converted that capability into regional service income.

We can develop hubs for repair, refurbishment, testing, calibration, certification, and maintenance of industrial machinery, electrical equipment, marine components, medical devices, and specialised technical products.

Such services earn foreign exchange while building higher technical competence within the country.

7. Education and vocational training for foreign students

Sri Lanka can attract foreign students for nursing, maritime training, hospitality, technical education, English-medium professional programmes, and industry-linked certifications.

This requires quality assurance, proper accreditation, student visa facilitation, accommodation support, and international marketing.

The opportunity is not only in universities but also in practical vocational and professional training where regional demand is strong.

8. Diaspora-linked business channels

Sri Lanka often sees the diaspora mainly as a source of remittances. That view is too narrow.

The diaspora can support patient referrals, tourism promotion, professional service contracts, export market access, investment partnerships, technology transfer, student recruitment, and business introductions.

Instead of making general appeals, Sri Lanka should create structured diaspora-linked commercial channels where overseas Sri Lankans can connect real opportunities to trusted local enterprises.

What activation should look like

Sri Lanka does not need another large committee studying opportunities for months or years. For each promising foreign exchange path, the country needs a small, dedicated activation cell with a clear deadline and measurable responsibility.

Each activation cell could include a relevant public-sector decision maker, a private-sector practitioner who understands the real transaction, a tax, legal, or regulatory officer who can clear obstacles, and an implementation coordinator accountable for progress.

Their task should be simple: identify the first few obstacles. Remove or simplify them within the shortest possible time. Measure the first real foreign exchange impact. Then improve and expand, based on results.

The performance measure should not be meetings held, papers submitted, or speeches delivered. It should be actual activation: transactions completed, foreign customers served, foreign exchange earned or saved, local suppliers connected, and obstacles removed.

The country must become comfortable with even trial runs. Not every trial will succeed. That is acceptable. What is not acceptable is to discuss opportunities for years while the opportunities are lost or grabbed by others.

This is not only the Government’s responsibility

The Government has a major role, but this cannot be left to the Government alone.

Every chamber, professional body, university, hospital, bank, exporter, hotel, logistics operator, investor, and entrepreneur should ask a simple question:

What foreign exchange path can we help activate?

A hospital should ask how it can serve foreign patients. A hotel should ask how it can support recovery tourism and long-stay care. A university should ask how it can attract regional students. An engineering firm should ask how it can export services. A bank should ask how it can simplify service-export transactions. A chamber should ask what regulatory obstacles are blocking its members.

A policymaker should ask which approvals can be simplified without compromising safeguards.

This is how a national movement begins. Not by waiting for one ministry to solve everything, but by each capable institution identifying one practical path and pushing it towards activation.

Every reader of this article has a stake in this. If foreign exchange becomes weak again, importers, exporters, banks, professionals, employees, and consumers will all suffer together. When the country loses confidence, even good businesses pay the price.

This should not become another debate divided by political colour, institutional pride, or sectoral interest.

A resilient Sri Lanka will protect all of us. A vulnerable Sri Lanka will endanger all of us.

The next stage of leadership

The leaders who act now will not merely manage the present. They can help build Sri Lanka’s first truly resilient foreign exchange architecture.

That requires courage, humility, and speed. Courage to accept that traditional approaches have not been enough. Humility to listen to people who face real business obstacles daily. Speed to move from discussion to facilitation.

The country does not need careless liberalisation, reckless borrowing, or inward-looking protection that weakens productivity. It needs intelligent, disciplined, practical facilitation of activities that create real net foreign exchange value.

Sri Lanka has enough talent, entrepreneurs, professional skill, private-sector energy, geographical advantage, and diaspora goodwill.

What Sri Lanka has lacked is not potential. What Sri Lanka has lacked is facilitation and activation of foreign exchange inflow paths.

A national call to action

We must now make foreign exchange resilience a national discipline.

Before approving a project, ask whether it will create or save foreign exchange.

Before signing a trade arrangement, ask whether Sri Lanka is ready to gain more than it loses.

Before borrowing externally, ask whether the project will create enough future foreign exchange to repay that debt.

Before holding another meeting, ask what can be activated within the next 30 days.

We need many new paths, not one miracle. We need facilitation, not only regulation. We need NFCC, not only headline gross figures.

Most importantly, we need to understand that this is not someone else’s problem. If the country sinks, all of us sink with it. If the country becomes resilient, all of us gain strength from it.

That is why Sri Lanka’s next national priority must be clear.

Open the national door for ideas. Listen to those who see opportunities. Facilitate every responsible path that can earn, save, or protect foreign exchange. Activate quickly. Learn quickly. Scale what works.

Not someday. Now.

(The author is a Chartered Engineer, industrialist, and keynote speaker. He is the Founder and Chairman of the KIK Group of Companies, whose operations include export-oriented engineering and switchgear manufacturing for global markets. He serves as an Executive Committee member of the Free Trade Zone Manufacturers Association of Sri Lanka. He can be reached via email at [email protected].)

The stage is set for one of Sri Lanka’s most celebrated blue-ribboned schools rugby rivalries as defending League and Knockout champions Trinity College travel to Colombo for the first leg of the historic 80th Bradby Shield encounter against Royal College tomorrow at the Royal Sports Complex.

Kick-off is scheduled for 4:15 p.m. The junior Under-16 encounter for the Simithrarachchi Trophy will be played prior to the senior game.

Although Royal enter the contest as the defending Bradby Shield holders following last year’s aggregate victory, Trinity arrive brimming with confidence after producing one of the finest seasons in the school’s rugby history. The overall Bradby tally still favours Trinity, who have won 40 series compared to Royal’s 37, while two series have ended in draws.

Royal hold the record for the highest aggregate score in Bradby history, amassing 83 points across both legs in 2002, while Trinity’s best aggregate came in 2012 when they scored 78 points, including a memorable 38-point performance in one leg.

Trinity completed a remarkable 2026 campaign by successfully defending the Schools Rugby League title for a record second successive year, having finished runners-up in the President’s Trophy in 2025. Under the leadership of fourth-year Lion Shan Althaf, the Lions secured the coveted rugby double, established themselves as the country’s dominant school side and ended a 39-year drought.

Despite playing only one home League fixture and travelling to Colombo for 11 matches, Trinity swept aside their opponents with victories over Lumbini (55-12), St. Anthony’s (58-5), Sri Sumangala (39-0), D.S. Senanayake (41-10), Isipathana (36-12), Royal (48-15), Wesley (42-10), Zahira (37-32) and St. Peter’s (20-7). They also defeated Thurstan (38-8), Zahira (32-23), Wesley (49-29) and Royal (58-26) earlier in the season in the President’s Trophy knockout competition. Trinity finished the season with an outstanding 376 points scored and only 103 conceded.

Althaf has led by example throughout the campaign, with excellent support from vice-captains Udan Wijekoon and Nisith Kumarasinghe. Udan has been the unsung hero of the side. The forwards have been powered by Hamza Abdeen, Evin Jayasena and Achintha Jayasena, while Deemath Abeypitiya and Minula Yaddehige have been consistent performers. Fly-half Abdul Malik has controlled Trinity’s attack superbly, while the experienced Ammar Manzil, recovering from injury, could feature at centre or wing. Kevin Weerakoon also remains an important utility option.

Royal, captained by Disas Pathirana, endured a difficult Schools Rugby League campaign against a demanding fixture list but gradually improved as the season progressed. Simak Shafeek, Kyhan de Silva, Savishtha Fernando and Althaf Amman are among the standout players for the Reid Avenue outfit.

Despite inconsistent results, the Reid Avenue outfit possess several match-winners and will take confidence from the fact that Bradby matches often produce performances far removed from league form. Backed by home support and determined to defend the Shield they won last year, Royal will be eager to upset the favourites.

Royal defeated Science (43-10), Thurstan (40-15), Kingswood (13-6) and S. Thomas’ (29-24), but lost to Zahira (26-29). In the Super Round, they lost to Isipathana (12-31), Trinity (15-48) and St. Peter’s (22-27) before ending their campaign with a 33-17 victory over Wesley.

On current form, Trinity start with a slight advantage, particularly after their convincing 48-15 victory over Royal in the league. However, history has repeatedly shown that the Bradby Shield is a competition unlike any other, where form often counts for little. Expect another fiercely contested chapter in Sri Lanka’s greatest schools rugby rivalry as both traditional giants battle for a crucial first-leg advantage.

Japanese referee Shimizu Mei will officiate the match.

Sri Lanka’s small and medium-sized enterprises (SMEs) are undermining their own access to finance by understating revenues and profits to minimise tax liabilities, forcing banks to independently reconstruct financial statements before extending credit, Union Bank of Colombo PLC Director/CEO Dilshan Rodrigo said.

Addressing the CA Sri Lanka 5th Annual Economic and Tax Symposium last week, Rodrigo said the widespread practice of maintaining multiple sets of accounts had become a structural impediment to SME financing, preventing banks from moving towards cash flow-based lending.

His comments comes amid repeated calls by SMEs for easier access to credit and a growing culture of entitlement for Government-backed financing.

‘At the moment, many SMEs, unfortunately, don’t pay tax. They pay very minimal tax. There are two sets of accounts or three sets of accounts. There are lots of challenges,’ he said.

Rodrigo said the contradiction was that while SMEs frequently criticised banks for demanding collateral, lenders could not rely solely on reported financial statements where revenues and profits were materially understated.

He said banks routinely examined sales books and other underlying business records before reconstructing borrowers’ financial statements, often finding actual turnover to be around 40% higher than reported.

‘Bankers actually reconstruct the financials. They go and look at the sales book and then check the numbers. You find that it’s 40% higher than that. Then you find probably the profit is understated,’ he said.

Rodrigo suggested the issue was well understood within the accounting profession, noting that audited financial statements were not always sufficient because the quality and rigour of audits varied significantly across firms.

‘There are reputed audit firms, but there are also lots of other chartered accountants. It might be audited, but if it’s not from a recognised firm, audited accounts are known to have significant understatement in them,’ he said.

He argued that resolving the problem required more than simply insisting on audited accounts, calling instead for stronger accounting standards, more rigorous audits and an independent SME credit-rating framework that would improve confidence in financial reporting.

‘It is important for SMEs to be transparent with their financials. It is important for rating agencies to get involved in making sure those numbers are correct. Then banks can actually support them with less collateral, maybe cash flow-based, because there is a rating and there is actual business repayment capacity indicated in the financials,’ Rodrigo said.

He said such reforms would create a virtuous cycle, enabling banks to lend against verified cash flows rather than property, improving tax compliance and making SMEs more attractive to equity investors.

Drawing on India’s experience, Rodrigo said credible financial reporting and rating infrastructure had enabled SMEs to attract both bank financing and strategic investors, giving businesses an incentive to accurately reflect their financial performance rather than suppress taxable profits.

Rodrigo also highlighted a structural constraint on long-term SME financing, noting that commercial banks remained funded predominantly by short-term deposits.

‘We don’t find more than 1% of deposits beyond five years. Nobody is committing to 20-year deposits,’ he said, arguing that long-term industrial and technology investments would require deeper capital markets and a stronger venture capital ecosystem rather than conventional bank lending.