Sri Lanka-India treaty to curb activity driven purely by tax benefits

Sri Lanka and India have amended their Double Taxation Avoidance Agreement (DTAA) to introduce the internationally recognised Principal Purpose Test (PPT), empowering tax authorities in both countries to deny treaty-based tax benefits where one of the principal purposes of an investment or transaction is to obtain a tax advantage rather than support genuine commercial activity.

The amended protocol entered into force on 19 June after both countries completed their domestic legal procedures and has since been notified by Sri Lanka’s Finance Ministry. The revised provisions will apply in India to income derived from 1 April 2027.

The PPT is a key anti-tax avoidance measure developed under the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) framework. It allows tax authorities to refuse benefits available under the bilateral tax treaty if it is reasonable to conclude that securing a treaty-related tax advantage was one of the principal purposes of an arrangement or transaction, unless granting the benefit is consistent with the treaty’s object and purpose (https://www.ft.lk/top-story/Govt-in-the-dark-as-FDI-tax-incentives-become-obsolete/26-794423).

The amendment also revises the treaty’s preamble to clarify that the agreement is intended to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or tax avoidance.

For businesses operating between Sri Lanka and India, the changes mean treaty benefits will increasingly depend on whether investments and corporate structures are supported by genuine commercial substance rather than being established primarily to obtain favourable tax treatment.

The revised treaty shifts the focus from merely satisfying technical requirements, such as tax residency and documentation, to demonstrating a legitimate commercial rationale for cross-border arrangements.

The protocol aligns the India-Sri Lanka tax treaty with international tax standards under the OECD’s BEPS initiative and reflects the growing global emphasis on protecting tax revenues while facilitating genuine cross-border trade and investment.

Tame draw on Galle featherbed pitch

Youth Test between Sri Lanka and India ended in a high-scoring draw at the Galle International Cricket Stadium last week.

A total of 1178 runs were scored for the loss of 25 wickets over the four days with neither side having the opportunity to press for a win on a pitch that was a heartbreak for the bowlers.

In reply to Sri Lanka’s first innings of 424-9 declared, India were all out for 576. Opening batsman Lakshya Raichandani scored a double century (207 off 324 balls, 22 fours, 3 sixes) and was supported by hundreds from his opening partner Sagar Virk (134) and wicket-keeper Manav Krishna who reached his century yesterday – 100 off 153 balls (6 fours, 3 sixes). 17-year-old right-arm seamer Lathendra Akash was the pick of the Lankan bowlers ending with 3/66.

Trailing by 152 runs, Sri Lanka made 178-6 in their second innings when the match was called off. Dulnith Sigera (72 off 77 balls, 3 fours, 5 sixes) and Kavija Gamage (51 off 66 balls, 7 fours, 1 six) hit fifties apiece while skipper Yashbardhan Chauhan helped himself to four wickets with his off-spin.

The second U19 Youth Test will be played at the

R. Premadasa Cricket Stadium from today (20). – [ST]

Scores:

Sri Lanka (U19) 424-9 decl.

and 178-6 (Dulnith Sigera 72, Kavija Gamage 51, Chamika Heenatigala 21*, Yashbardhan Chauhan 4/49) vs. India (U19) 576 (o/n 378-3) (Lakshya Raichandani 207, Sagar Virk 134, Kushagra Ojha 24, Kush Patel 42, Manav Krishna 100, BK Kishore 23, Lathendra Akash 3/66, Kavija Gamage 2/117, Dimath Abeysinghe 2/142)

Exporters Association of Sri Lanka elects new leadership at 29th Annual General Meeting

The Exporters Association of Sri Lanka (EASL) elected its new office-bearers and Executive Committee at its 29th Annual General Meeting (AGM), held recently with the participation of exporters, industry leaders, Heads of Missions, trade officials, and representatives from across Sri Lanka’s export sector.

The event was attended by World Bank Group Country Manager for Sri Lanka and the Maldives Gevorg Sargsyan as Chief Guest, together with Heads of Missions, trade representatives, and senior members of the business community, reflecting the growing importance of strengthening collaboration to support Sri Lanka’s export growth.

Nalaka Ratnayake was elected Chairperson of the Association for the forthcoming term. He will be supported by Manuje Hordagoda as First Vice Chairperson and Rozanne de Almeida as Second Vice Chairperson. Outgoing Chairperson Yohan Lawrence will continue to serve the Association as Immediate Past Chairperson.

Lawrence reflected on the EASL’s advocacy efforts over the past year, particularly on issues affecting the export sector, including the repeal of the Simplified Value Added Tax (SVAT) scheme, trade facilitation measures, and the implementation of the National Single Window. He noted that the Association had continued to engage policymakers and relevant authorities to ensure exporters’ concerns were represented, while advocating for reforms that enhance Sri Lanka’s competitiveness in international trade.

Delivering the keynote address, Sargsyan said that while Sri Lanka has made encouraging progress in its economic recovery, the next challenge is to strengthen competitiveness to accelerate growth and create more jobs. He highlighted that manufacturing value added per worker remains less than half that of Vietnam and about one-third that of the Philippines, while Sri Lanka was the only peer economy to record negative labour productivity growth in 2024. To strengthen export competitiveness, he emphasised three priorities: lowering the cost of doing business, expanding market access, and attracting higher-quality foreign investment.

‘No country, particularly a small country, has ever sustained prosperity by looking inward. Every success story was built on deeper integration, stronger exports, and rising productivity. Sri Lanka has the ingredients that others would envy: the location, the talent, and an entrepreneurial private sector that has weathered the worst and is still standing. The task now is to turn those advantages into a more competitive economy,’ he said.

Addressing the membership for the first time as Chairperson, Ratnayake outlined his vision for the Association and the broader export sector, calling for accelerated reforms to position Sri Lanka among Asia’s most competitive and business-friendly export destinations.

He emphasised the need to fast-track trade digitalisation through the full implementation of an integrated National Single Window, improve the ease of doing business, strengthen logistics competitiveness, and reduce the cost of exporting. He also highlighted the importance of export diversification, greater integration into global value chains, and increasing the participation of small and medium-sized enterprises (SMEs), noting that a broader and more inclusive export base would contribute to a stronger and more resilient economy.

The newly elected Executive Committee comprises representatives from Akbar Brothers Ltd., Beira Brush Ltd., Ceylon Biscuits Ltd., CIC Holdings PLC, Dipped Products PLC, Hatton National Bank PLC, Hayleys PLC, Joint Agri Products Ceylon Ltd., Lion Brewery (Ceylon) PLC, Nidro Supply Ltd., Sampath Bank PLC, Sri Lanka Export Credit Insurance Corporation (SLECIC), Tea Tang Ltd., and Vintage Teas Ceylon Ltd., together with representatives from the Association’s member associations, bringing together a broad cross-section of expertise from Sri Lanka’s export industry.

Tintin to Tranquility Base: New race for the moon

Long before US astronaut Neil Armstrong took ‘one small step’ that became ‘a giant leap for humankind’, generations of readers had already travelled there in the pages of Hergé’s Destination Moon (1953) and its sequel Explorers on the Moon (1954).

For many children of the Space Age, those graphic novels were their first glimpse of what a lunar expedition might look like: the sleek red-and-white rocket, the cumbersome spacesuits, the eerie silence of the moon, and the thrill of setting foot on Earth’s only natural satellite.

The remarkable thing is not merely that Hergé imagined the journey. It is how astonishingly accurate much of it proved to be. Working with scientific advisers, the Belgian cartoonist depicted weightlessness, working in a vacuum, oxygen supplies, orbital mechanics and lunar geology with uncommon accuracy (as events later transpired).

The persistent claim that Destination Moon became a training manual for NASA astronauts, however, is more myth than history. There is no evidence that the National Aeronautics and Space Administration formally used Hergé’s work as part of the US’s training programs.

Yet numerous astronauts, engineers and space enthusiasts have acknowledged that Tintin inspired their childhood fascination with space. In that sense, the fictional voyage became a very real launching pad.

Lunar milestone

This July marks another milestone. Today, it will be 57 years since a human being first set foot on the moon during the Apollo 11 mission in 1969. The anniversary invites not merely nostalgia, but a fresh look at what has happened since, as well as where humanity may be heading next.

The road to Tranquillity Base was paved by an extraordinary succession of unmanned flights. Before Armstrong’s famous footprint, both the Soviet Union and the United States launched dozens of robotic missions in a frantic Cold War contest. Between 1958 and July 1969, roughly 60 lunar probes were attempted by the two superpowers, with many failures and much spectacular success.

Soviet Luna missions achieved several historic firsts: the first spacecraft to reach the moon, the first impact, the first photographs of the far side, and the first soft landing. America’s Ranger, Surveyor and Lunar Orbiter program, meanwhile, photographed potential landing sites and demonstrated that astronauts could land safely. Apollo itself was preceded by uncrewed Saturn V test flights before carrying astronauts.

Only one nation has actually landed people on the moon: the United States. Between Apollo 11 in July 1969 and Apollo 17 in December 1972, six Apollo missions successfully landed astronauts on those sunlit silvery plains: Apollos 11, 12, 14, 15, 16 and 17. Apollo 13, famously crippled by an onboard explosion, never landed, but remains one of history’s greatest feats of crisis management.

In total, twelve human beings (and all of them Americans) have walked on the moon. No Soviet, Russian, Chinese or European astronaut has yet followed them.

More moon missions

That monopoly, however, is unlikely to last much longer. The state of play today is arguably more exciting than at any point since the early 1970s.

NASA’s Artemis program seeks to return astronauts to the lunar surface, including the first woman and the first person of colour to walk there, while establishing a sustained human presence around the moon through the planned Lunar Gateway space station.

China, meanwhile, has emerged as perhaps America’s principal competitor in the lunar race. Following the success of its Chang’e robotic missions – including returning lunar samples and landing on the moon’s far side – it plans to land astronauts before the end of this decade in partnership with Russia’s proposed International Lunar Research Station.

India has also dramatically altered the landscape. In 2023, Chandrayaan-3 achieved the first successful landing near the moon’s south pole, placing our nearest neighbour among the handful of nations capable of soft lunar landings.

Japan followed with its SLIM precision lander. Private companies are joining the race as well, while Europe contributes through the European Space Agency’s participation in Artemis, spacecraft development and scientific instruments.

Plant the flag

So how many countries have planted their flags on the moon?

The answer depends on what one means by ‘planting flags’. Six American flags were physically planted during the Apollo landings. China has planted its national flag through robotic missions using specially designed unfurling mechanisms. Soviet probes carried the USSR’s iconic hammer and sickle emblem; while India, Japan and others have deposited national symbols aboard their spacecraft. Yet only the Stars and Stripes has been carried there by human hands.

The deeper significance lies not in flags but in capability. Today, the club of nations able to reach the moon extends well beyond ‘the usual suspects’.

The United States, Russia (through Soviet achievements), China, India and Japan have all achieved successful lunar surface missions. Europe, although lacking an independent crewed lunar program, plays a central role through the European Space Agency. South Korea and the United Arab Emirates have successfully operated lunar orbiters, demonstrating that access to cislunar space is widening rapidly.

Beyond destination moon

The moon is no longer merely a destination. It is increasingly viewed as a strategic resource.

Previous explorations have revealed substantial deposits of water (in the form of ice) trapped in permanently shadowed craters near the poles.

Water can be split into hydrogen and oxygen, providing both drinking water and rocket fuel. Lunar regolith also contains oxygen bound within minerals, titanium, aluminium, silicon, rare earth elements and traces of helium-3, a rare isotope often discussed as a possible future fusion fuel, although commercially viable fusion remains elusive.

This prospect transforms the moon into something resembling humanity’s closest ‘space station’ of a sort. Rather than launching every kilogramme from Earth’s deep gravity well, future explorers could manufacture fuel and supplies on the moon before venturing onwards to Mars and beyond.

Such a staging point could significantly reduce the costs of deep-space exploration.

Explorers on the moon and Mars

So could humanity’s escape from a rapidly warming planet (or from other man-made and natural disasters in the offing) one day rely upon this lunar outpost?

Probably not in the sense of mass migration. The moon is a profoundly hostile environment – lacking atmosphere, shielding from radiation and liquid water at the surface. It is unlikely ever to become a refuge for billions. But it could become an indispensable industrial and scientific base that enables our species to expand permanently into the solar system.

Mars remains the obvious long-term destination for human settlement. Beyond Mars, the picture becomes more speculative. Titan, Saturn’s largest moon, possesses a thick nitrogen atmosphere and abundant hydrocarbons, but it is lethally cold. Io, by contrast, is perhaps the least hospitable major world in the Solar System, wracked by constant volcanic eruptions driven by Jupiter’s immense gravity. Europa and Enceladus, whose sub-surface oceans may harbour conditions favourable to life, are generally considered more promising scientific targets than Io. For human habitation, however, none currently rivals Mars.

Geopolitics rising

Yet, the moon raises another question: will geopolitics readily spill over into the lunar race now unfolding between the United States, China and other players? History suggests it almost certainly will.

The Apollo program itself emerged from Cold War rivalry with the Soviet Union. Today’s competition is less ideological than technological, economic and strategic. Access to water, control of infrastructure, communications networks, navigation systems and resource-rich regions around the lunar south pole all carry geopolitical significance. And the emerging competition increasingly resembles the contest for influence in the Arctic or the world’s sea lanes.

Whether that rivalry becomes confrontational depends partly on international law.

The cornerstone remains the 1967 Outer Space Treaty, which declares that the eponymous area (including the moon) cannot become the sovereign territory of any nation. It prohibits weapons of mass destruction in space and commits states to peaceful exploration for the benefit of all humankind.

The 1979 Moon Agreement goes farther in proposing that lunar resources constitute the ‘common heritage of mankind’; but major space-faring nations including the United States, Russia and China never ratified it.

More recently, the Artemis Accords led by the United States and signed by dozens of countries, establish principles for transparency, inter-operability and the peaceful use of space. China and Russia have instead pursued alternative cooperative frameworks.

Whether these legal instruments are adequate to protect not only national and international but also our species’ best interests remains uncertain. Existing treaties were drafted before commercial mining, permanent lunar settlements and strategic competition became realistic possibilities.

If terrain conflicts were ever to spill over into the near vicinity of the space between Earth and Luna, today’s legal architecture would almost certainly face severe strain.

Smaller blocs of powerful nations, including the European Union and several BRICS members, are already participating in various ways. Europe contributes major hardware, astronauts and scientific expertise to Artemis. India is steadily expanding its ambitions. Brazil, South Africa and others may join through international partnerships. So lunar exploration is becoming less an exclusive club than an increasingly interconnected global enterprise.

Perhaps the greatest ramification is philosophical rather than political. Colonisation of the moon should never become an excuse for failing to mitigate the fallout from a rapidly warming planet.

There is no Planet B waiting conveniently overhead, as in sci-fi or fantasy. The moon may help us become an interplanetary civilisation, but it cannot replace the fragile blue world that remains our only true home.

Fifty-seven years after Armstrong’s first footprint, the moon once again stands at the centre of history. Not simply as an object of scientific curiosity or nationalist prestige, but as the first stepping stone towards a wider human future among the planets. The next ‘one small step’ may lead not only to Mars, but eventually to destinations scarcely imaginable today

The next ‘one small step’

Fifty-seven years after Armstrong’s first footprint, the moon once again stands at the centre of history. Not simply as an object of scientific curiosity or nationalist prestige, but as the first stepping stone towards a wider human future among the planets. The next ‘one small step’ may lead not only to Mars, but eventually to destinations scarcely imaginable today.

One suspects that Hergé would have smiled at the thought. Professor Calculus would already be calculating trajectories with serene confidence. Tintin would be eager to investigate whatever mysteries awaited beyond the next crater. And Captain Haddock, after a characteristically thunderous ‘billions of blue blistering barnacles!’, would probably still be wondering whether anyone remembered to pack a decent bottle of his favourite hooch for the voyage.

Ambeon Capital plans Rs. 4 b equity raising via Rights and private placement

Ambeon Capital PLC has unveiled plans to raise up to Rs. 4 billion through a combination of a Rights Issue and a contingent private placement to strengthen its capital structure, reduce gearing, and fund new investments in high-growth sectors.

The Board of Directors resolved on 16 July to proceed with a Rights Issue of up to 100 million ordinary voting shares at Rs. 32 each, targeting proceeds of up to Rs. 3.2 billion. Existing shareholders will be entitled to subscribe for one new ordinary share for every 10.22352863 shares held.

Ambeon Capital shares ended Friday unchanged at Rs. 31.10.

Alongside the Rights Issue, the Board has approved a private placement of up to 25 million ordinary voting shares at the same issue price of Rs. 32 per share to raise a further Rs. 800 million. The private placement will proceed only if the Rights Issue is fully subscribed and applicants under the Rights Issue specifically apply and pay for the placement shares.

The private placement will be open to shareholders subscribing under the Rights Issue as well as investors purchasing Rights on the Colombo Stock Exchange (CSE) during the Rights trading period and applying for the additional shares. If applications exceed 25 million shares, allocations will be made on a pro-rata basis.

Ambeon Capital said the proceeds will be used to strengthen the company’s capital structure by reducing its gearing ratio while funding new equity investments in high-growth sectors, including financial services, technology, real estate, and fast-moving consumer goods (FMCG).

The Board said it considers the Rs. 32 issue price to be fair and reasonable despite being above the market closing price of Rs. 30.10 on the trading day immediately preceding the resolution. It noted that the company’s shares had experienced heightened volatility following the West Asia conflict and that the issue price reflected its assessment of fair value and expected market conditions.

Both the Rights Issue and the private placement remain subject to CSE approval in principle for the Issue and listing of the new shares. The Rights Issue also requires shareholder approval by ordinary resolution, while the private placement is subject to approval by special resolution at a General Meeting.

AHRP marks silver jubilee, charts next 25 years of work

The Association of Human Resource Professionals (AHRP) Sri Lanka celebrated its Silver Jubilee with a landmark conference that looked beyond its first 25 years to the future of work, bringing together policymakers, business leaders, HR professionals and global experts to examine how artificial intelligence (AI), digital transformation and skills-based talent strategies are reshaping organisations.

Held at Cinnamon Life yesterday, the conference was graced by Prime Minister Dr. Harini Amarasuriya as Chief Guest, highlighting the growing importance of human capital in driving Sri Lanka’s economic transformation and future competitiveness.

Congratulating AHRP on its Silver Jubilee, she said HR professionals play a critical role in building organisational cultures that promote learning, innovation and leadership while helping organisations navigate technological transformation.

She also called for stronger collaboration between Government, industry and educational institutions to develop a future-ready workforce.

“The greatest competitive advantage of any nation is its human capital – the knowledge, skills, creativity and resilience of its people,” she said.

Welcoming participants, Association of Human Resource Professionals Sri Lanka President Thushara Jayawardana reflected on AHRP’s remarkable journey over the past 25 years and its contribution to advancing the HR profession in Sri Lanka.

He said the association has consistently championed professional excellence, ethical leadership and innovation in human resource management while helping organisations navigate an increasingly dynamic business environment.

Jayawardana noted that as organisations enter an era shaped by AI and rapid technological disruption, HR professionals have an even greater responsibility to build resilient, future-ready workplaces through continuous learning, people development and organisational transformation.

“Our greatest achievement is not the first 25 years we celebrate today, but the foundation we have laid for the next 25,” he said, reaffirming AHRP’s commitment to shaping the future of work through leadership, innovation and professional excellence.

As part of its Silver Jubilee celebrations, AHRP also commemorated the milestone with a ceremonial market-opening bell-ringing at the Colombo Stock Exchange (CSE). Led by President Thushara Jayawardana together with the Executive Committee and CSE officials, the event symbolised the association’s contribution to advancing Sri Lanka’s HR profession over the past 25 years while marking the beginning of its next chapter.

Reflecting on the association’s beginnings, AHRP Founder President Chitral Amarasiri recalled the vision that inspired its establishment 25 years ago.

He said AHRP was founded with the objective of elevating human resource management into a recognised strategic profession capable of contributing directly to organisational success and national development.

Looking back on the association’s achievements, Amarasiri commended the generations of HR professionals who have helped build AHRP into one of Sri Lanka’s leading professional bodies while continuing to uphold excellence, integrity and lifelong learning.

Established in 2000, the Association of Human Resource Professionals (AHRP) Sri Lanka is the country’s leading professional body for HR practitioners. For 25 years, it has championed professional excellence, leadership development and innovation in human resource management while supporting organisations in building resilient and future-ready workforces.

LinkedIn insights

The conference featured a keynote presentation titled “Redefining the Future of Work,” delivered by LinkedIn Director – Sales, Talent and Learning Solutions for South India and Sri Lanka Ankit Khanna, who explored the transformative impact of artificial intelligence, skills-based hiring and changing workforce dynamics.

Drawing on LinkedIn’s global workforce insights, Khanna revealed that 60% of professionals globally are expected to seek new employment opportunities in 2026, while the figure rises to 68% in Sri Lanka, reflecting increasing workforce mobility.

He also noted that AI is rapidly reshaping Sri Lanka’s skills landscape, with six of the country’s ten fastest-growing skills now linked to artificial intelligence and technology infrastructure.

Khanna revealed that over 590,000 Sri Lankan professionals are active on LinkedIn, representing a 188% year-on-year increase, while time spent on the platform has doubled, highlighting growing engagement in professional networking and career development.

Addressing talent migration, he observed that Sri Lanka continues to experience an outflow of skilled professionals, although the trend has improved significantly. LinkedIn data showed that talent outflow declined by 45%, with professionals leaving the country falling from 55,358 in 2023 to 24,887 in 2026.

He emphasised that the future of work presents both unprecedented opportunities and significant challenges, urging organisations to embrace adaptability while placing people at the centre of transformation.

Building on the keynote, the conference featured a panel discussion titled “Shaping the Future of Work and Organisations,” moderated by AHRP Vice President and Hemas Holdings PLC Chief People Officer Ravi Jayasekara.

Shaping the future of work and organisations

The panel brought together SHRM Senior Advisor and Head – Leadership and HR Transformation Shaakun Khanna, LinkedIn Head of Enterprise Sales – South India, Sri Lanka and Maldives Guna Grace, BCG Managing Director and Partner Anushman Upadhaya and AIA Insurance Sri Lanka Director/CEO Chathuri Munaweera.

Speaking during the discussion, LinkedIn Head of Enterprise Sales – South India, Sri Lanka and Maldives Guna Grace described the current workplace transformation as the “Great Skills Reset.”

He noted that while only 25% of job skills changed between 2015 and 2025, nearly 70% are expected to change by 2030, signalling an unprecedented shift in workforce requirements.

Grace warned that organisations face an “invisible crisis,” with 86% of companies yet to fully prepare for the rapidly changing skills landscape.

He argued that tomorrow’s opportunities cannot be secured using today’s capabilities, stressing that workforce upskilling should become a business growth strategy rather than simply another learning and development budget item.

According to Grace, the traditional talent equation based on experience, qualifications and existing skills is rapidly becoming obsolete.

Instead, he said, future success will depend on the combination of AI capability, human capability and adaptability.

He explained that AI capability refers to an individual’s ability to effectively work alongside artificial intelligence, while human capability includes uniquely human strengths such as creativity, empathy, critical thinking, judgement and leadership. Adaptability, he added, is the willingness to continuously learn, unlearn and relearn as technology evolves.

Grace also observed that employers are increasingly assessing candidates based on their learning agility, problem-solving ability and capacity to embrace change rather than relying solely on past experience and academic qualifications.

BCG Managing Director and Partner Anushman Upadhaya said organisations must move beyond simply digitising existing processes and instead redesign their operating models to become AI-first enterprises.

He explained that many companies mistakenly equate digital transformation with adding technology to existing workflows, resulting in only incremental efficiency gains.

In contrast, AI-first organisations fundamentally redesign processes by enabling artificial intelligence to perform routine execution tasks while employees focus on higher-value responsibilities requiring judgement, innovation and oversight.

Using the example of a bank processing personal loans, Upadhyaya illustrated how AI can streamline operations by analysing existing customer information and completing credit assessments automatically, enabling faster and more personalised customer service.

He said organisations embracing AI-first operating models have the potential to achieve productivity improvements of up to 34 times, but stressed that such transformation depends as much on people as technology.

He noted technology accounts for only 30% of successful AI transformation, while the remaining 70% depends on leadership, organisational culture and governance and employee adoption.

Responding to concerns over employee resistance, he said successful AI transformation requires involving employees in redesigning workflows and assuring them that AI is intended to augment rather than replace their roles.

Drawing on a banking transformation project, he explained that productivity gains enabled employees to process significantly more work, allowing the organisation to increase business targets rather than reduce headcount.

“The most successful AI transformations are those where people are genuinely involved in shaping new ways of working,” he said.

SHRM Senior Advisor and Head – Leadership and HR Transformation Shaakun Khanna emphasised that while AI is transforming organisations, the greatest challenge lies not in technology but in people.

He said AI has democratised access to advanced technologies, making powerful tools available to organisations of every size. However, successful transformation depends on leaders redesigning organisational structures, investing in workforce upskilling, fostering an AI-enabled culture and establishing strong governance frameworks.

Khanna stressed that organisations would fail to realise returns on AI investments if employees do not fully adopt new technologies.

He also urged organisations to move beyond competency-based talent models towards skills-based organisations, where recruitment, learning, career progression, performance management and rewards are centred on skills rather than qualifications alone.

Noting that 81% of organisations recognise the need for this transition, he said only a small proportion have successfully implemented it because it requires redesigning the entire employee lifecycle rather than simply introducing new policies.

AIA Insurance Sri Lanka Director/CEO Chathuri Munaweera said organisations of the future will be defined not by their size but by their ability to foster continuous learning, adaptability and innovation.

Drawing on AIA’s AI transformation journey, she said Sri Lanka’s competitive advantage lies in its resilient and agile workforce, adding that organisations should leverage these strengths while embracing artificial intelligence.

Munaweera acknowledged that one of the biggest challenges is overcoming employees’ fear that AI will replace their jobs. “AI will not replace employees, but employees who are good at AI will replace those who are not,” she said, stressing the importance of reskilling employees and building confidence throughout the transformation journey.

She also highlighted the need for strong digital foundations-including robust systems, reliable data and well-designed processes-before organisations can successfully implement AI.

Describing AI transformation as fundamentally a leadership challenge, Munaweera said HR plays a pivotal role in redesigning organisations, supporting leaders and guiding employees through change.

Reflecting on AIA’s own experience, she acknowledged that while AI transformation is essential, “it is easier said than done.”

Concluding the discussion, AHRP Vice President Hemas Holdings PLC Chief People Officer Ravi Jayasekara said the future of work will not be defined by artificial intelligence alone but by how effectively organisations design collaboration between people and technology.

He said organisations that deliberately create environments where humans and AI complement one another will enjoy a lasting competitive advantage, with HR professionals uniquely positioned to lead this transformation through future-ready operating models centred on people, culture and technology.

Reflecting on AHRP’s Silver Jubilee, Jayasekera said the anniversary was not merely a celebration of the association’s achievements over the past 25 years but the beginning of its next chapter.

“The future of work is about humans working with AI and AI working with humans. How deliberately we design that relationship will set organisations apart,” he said.

He said the decisions organisations make today will determine how successfully Sri Lanka’s workforce adapts to the future, reaffirming AHRP’s commitment to supporting HR professionals and business leaders in building resilient, innovative and future-ready organisations.

Think beyond borders, own IP from South Asia: WSO2 Founder

WSO2 Founder Sanjiva Weerawarana said Sri Lanka’s technology entrepreneurs must stop thinking small, build globally competitive companies from the region, and retain ownership of their intellectual property (IP) instead of exporting talent.

Speaking during a panel discussion at the launch of National Association of Software and Service Companies’ (NASSCOM) Disha Mentorship Program in Colombo last week, he said the technology industry in South Asia possesses world-class talent, but has yet to fully capitalise on its potential because entrepreneurs, investors, and ecosystems often encourage companies to relocate overseas as they scale.

‘If I were starting today, I would build with a much stronger India-Sri Lanka perspective,’ he said, noting that advances in artificial intelligence (AI) and digital technologies have made national borders far less relevant for software businesses.

Reflecting on WSO2’s own journey, Weerawarana said many doubted that a deep-tech product company could be built from Sri Lanka two decades ago. ‘We proved that it was possible by trusting Sri Lankan talent and building the company here,’ he said.

However, he argued that a persistent mindset still exists across the region that successful founders must relocate to the US to build globally significant companies.

‘I don’t buy that. What it shows is that the raw talent is already here. The issue has never been capability; it is whether we create the opportunities and the confidence to build from our own region,’ he explained.

Weerawarana pointed to the growing global influence of Indian and Sri Lankan professionals, noting that many lead some of the world’s most respected technology companies and academic institutions.

‘The CEOs of Microsoft, Google, and IBM are Indian. The President of Caltech is Sri Lankan. That tells you the talent exists. But, too often, that talent succeeds elsewhere instead of creating value from this part of the world,’ he noted.

He added that South Asia, together with neighbouring regions, represents the world’s economic centre of gravity.

‘India has 1.45 billion people. China has 1.41 billion people. The African region has another 1.5 billion people. Three-quarters of the world’s population is centred around this side of the world, yet we don’t leverage that advantage,’ he observed.

Weerawarana said the region also suffers from a lack of recognition for its own technological successes. ‘Most people can easily name American software companies, but very few can name Indian or regional product companies despite their global impact,’ he said.

Highlighting WSO2’s own footprint, he noted that the company’s software powers digital services used by hundreds of millions of people worldwide, including many government platforms in India. ‘People use our software every day without even knowing it,’ he said.

He also challenged Sri Lankan entrepreneurs and investors to adopt a far more ambitious outlook.

‘Many entrepreneurs think too small. Investors also value companies based on the potential of the local market instead of global opportunities,’ he said.

He said startups often focus on incremental or copycat innovation instead of solving globally relevant problems.

‘With AI, the complexity of solving many problems has fallen dramatically. The potential today is almost limitless, but we are allowing many of those opportunities to slip away,’ he said.

Weerawarana stressed that the region should move beyond simply serving as an engineering base for multinational corporations, and instead build and own globally competitive technology businesses.

‘India has done exceptionally well attracting captive development centres. Every major global software company has engineering operations there. But the value of those companies largely sits elsewhere. If we want to create lasting wealth in this region, we need to own the IP, own the companies, and build them from here,’ he stressed.

He also urged businesses to overcome lingering perceptions that products developed in South Asia are inherently less competitive.

‘If you build something that creates real value and solves important problems, it doesn’t matter where you are located. The borders are becoming increasingly porous because technology removes those barriers. What matters is creating impact,’ he said.

Bhanuka leads Jaffna Kings to first win with captain’s knock

Bhanuka Rajapaksa yesterday played a captain’s innings of 61* off 37 balls (4 fours, 4 sixes) with a strike rate of 165 to lead defending champions Jaffna Kings to their first win of the tournament after faltering against Galle Gallants in their opening encounter on Friday.

Rajapaksa’s innings proved to be a decisive factor in a low-scoring game on a slow pitch, where run-making was not easy. Coming to the wicket at 35-3 in the seventh over, the left-hander took a little time to get his bearings and then picked on the moments to attack to get his team ahead of the required rate following a poor first 10 overs when they were 56-3. The longer he stayed at the wicket, Rajapaksa, who took the Player of the Match award, grew in confidence and completed a well-deserved half-century to get his team over the line with an over to spare.

He received support from Ibrahim Zadran (21) in a fourth-wicket stand of 47 off 35 balls, and Dunith Wellalage (11*), a further 39 off 26 that saw his team seal victory.

Earlier, Dambulla Sixers, invited to bat first, struggled throughout their innings of 130 against the seam of Lizaad Williams (3/14) and the spin of Traveen Mathew (3/19) and Shakib Al Hasan (2/12). Pavan Rathnayake’s 27 off 16 was the only noteworthy innings for Dambulla Sixers. – [ST]

Scores:

Dambulla Sixers 130 (19.3) (Niroshan Dickwella 23, Pavan Rathnayake 27, Shakib Al Hasan 2/12, Lizaad Williams 3/14, Traveen Mathew 3/19)

Jaffna Kings 133-5 (19) (Ibrahim Zadran 21, Bhanuka Rajapaksa 61*, Dushmantha Chameera 2/21)

Creating a cognitive gym: Taming the AI monster in our classrooms

The song, thief’s mother, and motor car analogy

A few weeks ago, I shared a music track with a close friend. The lyrics were mine, but the melody and the singing voice had been generated entirely by Artificial Intelligence (AI). I expected him to admire the technology. Instead, his face filled with deep concern. ‘Be careful,’ he warned me immediately. ‘Relying on this machinery will rot your brain. Over time, it will diminish your cognitive power until you can no longer think for yourself.’

His warning forced me to examine a fear that has gripped the world. There is an old, wise saying in Sri Lanka that one should not ask about the thief from the thief’s mother. As a visiting lecturer at several universities, am I the wrong person to ask about AI? Am I defending a technology that is secretly stealing our children’s minds?

What our fears tell us today feels right on the surface, but it is fundamentally wrong when we look deeper. Consider the analogy of a motor car. If a man stops walking and drives his car everywhere, his legs will eventually become weaker. He will lose his physical fitness. But is the car the enemy? No. The solution is not to ban the car and walk ten miles to work. The solution is to use the car to cut down travel time so that the time saved can be reinvested in working out at a gym or engaging in a physical fitness program.

AI is just another tool for our convenience. Rather than rejecting it wholesale out of fear, we must find ways to use it productively. We must use the time it saves us to build stronger, sharper, and more creative minds.

Illusion of honest homework

The loudest outcry against AI comes from the field of education. Teachers and professors everywhere are in a panic because students are using AI platforms to write their take-home essays and exam answers. They submit these beautifully polished papers, pass their courses, and graduate. Yet, at the end of the day, nothing has been retained in their brains.

But let us be completely honest with ourselves: is this shortcut really new? Long before Large Language Models (LLMs) existed, a massive underground market thrived in Sri Lanka and across the globe. For decades, desperate or lazy students have relied on parents, older siblings, or hired commercial ghostwriters to pen their assignments. The ‘homework essay’ that the student is expected to write by himself has been compromised for generations. It is not his work that is assessed, but the work of someone else.

If we must choose between these two evils, an AI-written essay might actually be the lesser threat. Unlike a hired human writer who simply hands over a finished product for a fee, AI platforms provide a vast, immediate, and rich repository of source data. The machine can synthesise global knowledge in seconds. The problem is not the availability of this vast knowledge base; the problem is that our current educational system allows students to copy it blindly without processing it. A viable solution should be found to tackle this evil.

Turning AI output into starting baseline

Instead of fighting a losing battle to ban AI, we should welcome its rich knowledge base into the open. My suggestion is simple: let us change the rules of the assignment.

Instead of asking a student to write an essay from scratch at home, we should instruct them to generate the base essay using AI first. This AI output becomes their raw material-the baseline of existing public knowledge on the topic.

The real assignment then begins.

The student must take that AI text and write his own secondary essay. His job is to improve it, challenge its assumptions, find its logical gaps, and argue against what the machine has stated. When he submits his work, he must hand in three things: the AI’s base text, his own counter-essay, and a concise summary matrix detailing exactly how he differed from the AI and what unique human contribution he has brought to the table.

This is in line with what the founder Vice Chancellor of Vidyodaya University, the predecessor to today’s University of Sri Jayewardenepura, Ven. Weliwitiye Sri Soratha Thero, advised. The erudite Buddhist prelate is reported to have advised that university students should be critical, probing, and challenging of existing knowledge. This is exactly what, in an AI-dominated world, they should do: challenge what AI has produced critically and probingly.

For us as examiners, this completely revolutionises grading. We no longer need to wade through pages of generalised text. We can look directly at the summary matrix to see exactly how a student thinks. It makes marking remarkably easy because the student’s unique intellect is isolated and exposed.

Loophole of ‘Second AI’

When I enthusiastically shared this idea with a colleague, she shook her head. ‘It sounds wonderful in theory,’ she said, ‘but you are forgetting how clever students are. The danger is that a student will simply open a second AI platform, paste the first AI’s essay into it, and command it: ‘Write an essay challenging this text and generate a summary of the differences.’ The student will still cheat and still learn absolutely nothing.’

My colleague’s objection is entirely valid. We live in an era where AI can simulate human critique. Because these systems generate dynamically unique text every single time, traditional anti-plagiarism software is completely useless. Therefore, there is no software algorithm on earth, at least so far, that can definitively catch a student using one machine to critique another.

If education remains a game of digital ping-pong played between home computers, we have no way of knowing who did the work. The student remains a passive bystander in their own education, and their cognitive power will indeed diminish.

Remembering the 1960s Sri Lankan classroom

To defeat this modern digital trap, we do not need futuristic technology. We simply need to look backward. I was schooled in Sri Lanka during the late 1950s and early 1960s. During this period, Sri Lanka also followed the educational system inherited from the colonial masters. Under that system, our daily routine was anchored by a simple, highly effective practice.

We did not do our heavy creative lifting at home because homework was not given to us. In that era, we had to do real homework by helping our elders complete the household chores. Boys were required to work in the paddy fields or vegetable patches, while girls had to help their mothers in the kitchen. Hence, learning was tested in the classroom itself by writing essays or painting pictures under the watchful eyes of teachers.

The topic had been given earlier, and we had enough time to prepare for the in-class essay writing or quizzes on other topics. We had to store the knowledge in our neck-top and not in the laptop or palmtop. Hence, answers were written by drawing on that stored knowledge and, therefore, they were our answers and not the answers prepared for us by a third party.

There were no textbooks to copy from, no parents to do the work, and no hired writers available. We were entirely on our own, racing against the clock. This method was incredibly powerful because it forced independent cognitive development. If a student showed a weakness in sentence structure, logic, or calculation, the teacher saw it unfolding in real time. The issue was addressed and corrected personally, right there on the spot. I recall that teachers in that era spent even after-school hours teaching us extra lessons absolutely free of charge.

By bringing this classic philosophy back into our modern universities, we can create a cognitive ‘fingerprint’ for every student. If we force students to write a short reflection essay by hand in class during the first week of the semester, we learn their true word power, their natural sentence structure, and their ability to argue a point. If their take-home AI critique later reads like the work of an Oxford professor, the fraud is instantly exposed.

Shifting the tool from student to teacher

This brings us to a vital realisation: we need to change who is driving the technology. Instead of leaving AI entirely in the hands of the students, AI should be effectively used as a powerful tool by the teacher.

As a university lecturer, I do not reject the rich knowledge base of AI. In fact, I embrace it. I develop and enrich my own university lectures by tapping into AI. Because of the vast Large Language Model (LLM) feature, AI can cross-reference millions of global texts, academic papers, and historical data points in an instant. It acts as an incredibly efficient research assistant for the educator. By using it to prepare my materials, I can ensure my lectures are packed with high-density, up-to-date, and multifaceted knowledge.

However, once that knowledge is compiled, the responsibility shifts. My job as a teacher is to design an environment where students are forced to pull that information into their own heads, rather than leaving it on a computer screen.

Power of continuous learning: 20-minute quiz

To achieve this, we must completely eliminate the bad habit of students waiting until the final examination week to open their books. True education requires continuous, steady mental exertion. To force my students to learn on a continuous basis, I implemented a strict, unyielding system in my lecture halls.

At the end of every single lecture, I announce to the class that our very next session will begin with an immediate, mandatory 20-minute quiz. This quiz is based entirely on the concepts we just discussed. I do not ask simple, straightforward questions that require rote memorisation. Instead, I deliberately concoct ten complex, tricky statements.

Students are asked to evaluate each statement with sharp reasoning and identify whether it is True, False, or Uncertain. The ‘Uncertain’ category is the most vital, as it represents statements that contain elements of both truth and falsehood, depending on the context. Students sit in the classroom, unable to open textbooks, talk to neighbors, or access internet devices. They are forced to rely solely on their own immediate comprehension and logical deduction.

To make the process efficient and transparent, marking is done right then and there. Students reshuffle and swap their answer sheets among themselves. We jointly design the correct answers and explain the rigorous reasoning behind them. The feedback loop is instantaneous.

Psychology of peer motivation

When I first introduced this system, the results were a wake-up call for the lecture hall. At first, many students did not do well at all. They were caught off guard by the depth of reasoning required, and their marks suffered.

However, a fascinating psychological shift occurred. Because the papers were graded and handed back immediately in class, students suddenly realised exactly where they stood. They looked around the room and realised they were lagging behind their peers. Nobody wants to be left behind.

Driven by healthy peer competition and the realisation that they could no longer coast through the semester, their habits transformed completely. They started to study and learn what had been taught in the previous lecture ardently. They arrived at the next session primed, focused, and mentally prepared to fight through the 20-minute quiz. Years later, when I meet these former students in the professional world, they highly commend this system. They tell me it was the single most effective tool that taught them how to truly learn and retain information for life.

A manifesto for institutional assessment reform

The individual success of this classroom model highlights a critical truth that our broader education system can no longer afford to ignore. Educational institutions-both schools and universities-must radically change their entire method of student assessment. The traditional model of evaluating students based on homework assignments completed in isolation is completely broken. It is a system built for a world that no longer exists.

Today, human knowledge is being condensed into a single dot through Large Language Models, and these are already being overtaken by advanced Large Reasoner Models (LRMs) capable of complex logic and chain-of-thought processing. Because this vast ocean of information is now freely and instantaneously available to anyone with an internet connection, attempting to test a student’s ability to merely retrieve or summarise data is an exercise in futility.

Rather than blaming AI for ruining academic integrity, educationists must take a proactive, forward-looking stance. We must officially recognise that AI is far more effective and valuable as a tool for teachers than it is as a proxy for students. To remain relevant, every single teacher and lecturer must be systematically trained and equipped to utilise AI in their curriculum design and lecture synthesis.

However, the core metric of success must be the internal translation of that knowledge. The teacher’s objective must be to take that rich, machine-generated knowledge base and drive it directly into the student’s hardcore memory and neural pathways. If knowledge is simply left sitting on a computer screen or printed out passively on a sheet of paper, no real learning has occurred. The brain remains unexercised.

Conclusion: Path to cognitive resilience

The ultimate objective of education is to develop long-term critical power, cohesive thinking, and the ability to articulate thoughts under pressure. AI cannot destroy this if we shift our focus from evaluating the final written product to observing and testing the live, active human process.

With the support of AI handling the heavy lifting of data collection for the educator, we can transform our classrooms into vibrant, active arenas. We can use our precious lecture hours for real-time student presentations, spontaneous in-class debates, and rapid, observed writing sprints.

Furthermore, we must revive the art of the brief, informal interview-the oral defence. A teacher does not need an hour-long meeting to evaluate a student. A simple, two-minute conversation at the desk can reveal everything. When you look a student in the eye and ask them to explain their quiz reasoning or their essay summary in their own words, a cheating student will stumble into vague generalities. A student who has internalised the knowledge will shine. They will display presentation skills, explanatory power, and the rare ability to teach another person what they have learned within a brief time, using their own simple, universal language.

This forward-looking reform of how we deliver and assess learning is no longer a luxury or a distant ideal; it is an absolute institutional necessity today. We do not need to fear the mother of the thief, nor do we need to ban the motor car. If our educational administrators and policymakers have the courage to bring active learning and strict, continuous evaluation back into the physical classroom under our watchful eyes, we can turn AI into the greatest cognitive gym human history has ever known.

The Opposition needs ideas, not just unity

There is renewed vigour within the country’s Opposition. Meetings are being held, alliances negotiated, and familiar calls for Opposition unity have once again become dominant in the political discourse. Yet, beneath the noise surrounding these coalition-building efforts lies an uncomfortable reality: that there is a striking absence of ideas. Beyond the singular objective of removing the current administration, the emerging Opposition has offered little vision of what it would do differently or how it intends to address the country’s long-standing structural challenges.

The principal force driving this newfound unity appears not to be ideological conviction, but political survival. The disparate parties and personalities, now attempting to come together, have little in common in terms of economic philosophy, governance, or social policy. Their common denominator is the existential fear of legal accountability.

One of the loudest advocates of Opposition unity is MP Dayasiri Jayasekara, who has repeatedly made this point, perhaps more candidly than he intended. On several occasions, he has argued that Opposition parties must unite, because many of their leaders face legal action, particularly over allegations of corruption. At a recent rally promoting Opposition unity, he went even further, suggesting that anyone who has held public office for over two decades is bound to have committed acts that could be construed as the misuse of public funds.

That statement goes to the heart of the political malaise. For decades, the country has tolerated the notion that a certain level of corruption, waste, and abuse of public resources is simply part of governance. Public office was too often viewed as carrying privileges that extended well beyond the responsibilities entrusted by the electorate. Misuse of State resources became normalised rather than condemned.

Examples abound. Former President Ranil Wickremesinghe’s detour to England to attend an event involving his wife, while returning from an official engagement in New York, was widely treated as routine rather than questioned as a matter of public accountability. Likewise, almost every President in recent memory, other than the incumbent, undertook highly publicised ‘pilgrimages’ to Tirupati in South India, accompanied by large State-funded entourages. Such expenditures were accepted as the ordinary perks of office rather than scrutinised as costs ultimately borne by taxpayers.

These incidents are not merely anecdotes. They reflect a broader political culture in which waste and misuse of public funds became so commonplace that many ceased to recognise them as problems.

It is precisely this culture that has contributed to Sri Lanka’s present circumstances. Years of fiscal indiscipline, patronage politics, and the casual treatment of public resources have eroded public trust and weakened State institutions. The electorate’s demand for change was never solely about replacing one Government with another, but replacing a political culture that regarded accountability as optional.

Whether one agrees with every policy of the current administration or not, it is difficult to deny that corruption and accountability have moved closer to the centre of public discourse. Legal action against powerful political figures, once almost unimaginable, has become a routine. That shift reflects a broader public expectation that those entrusted with public office should also be answerable for their conduct.

If the Opposition genuinely wishes to present itself as an alternative Government, it must offer more than solidarity among politicians facing legal jeopardy. It must articulate a coherent vision for economic recovery, institutional reform, public sector efficiency, education, healthcare, and constitutional governance. Most importantly, it must demonstrate that it has learned from the failures of the political culture that brought Sri Lanka to this point.