Category: Daily Financial Times

With a dedicated workforce of over 9,000 employees across the island, Bank of Ceylon continues to drive Sri Lanka’s digital transformation by promoting QR payment solutions. Offering a fast, secure, and convenient way to make and receive payments, BOC Flex and Lanka QR empower customers and businesses to embrace cashless transactions with ease. Through this initiative, BOC is paving the way for a smarter and more digitally connected future.

The Government yesterday said approximately $ 6.9 million remitted by Sri Lankan workers in Israel has been suspended due to legal proceedings involving remittance service provider Global Remit, rejecting claims that the funds were lost as a result of a cyberattack.

Around 5,100 Sri Lankan workers have been affected by the suspension, Foreign Affairs and Foreign Employment Deputy Minister Arun Hemachandra told Parliament.

Responding to concerns raised in Parliament, Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra said claims that worker remittances had disappeared as a result of a hacker attack were ‘completely false’.

He explained that approximately $ 6.9 million in remittances had been suspended due to legal proceedings initiated by Israeli authorities against Global Remit.

According to the Deputy Minister, around 5,100 Sri Lankan workers have been affected by the suspension.

Hemachandra said the Government is engaged in discussions at both banking and diplomatic levels to resolve the matter and facilitate the release of the funds.

He added that alternative remittance channels have already been introduced to ensure Sri Lankan workers in Israel can continue sending money home without disruption.

The Deputy Minister also said the Government remains focused on strengthening the economy despite challenges arising from instability in the Middle East and climate-related pressures, including the effects of El Niño.

He further noted that ongoing tax reforms and the digitalisation of the tax system form part of broader efforts to improve state revenue collection, while measures are also being taken to reduce waste and corruption and direct public funds towards public benefit.

Sri Lanka’s leading exporters have endorsed the Government’s ambitious plan to boost exports to $ 36 billion by 2030, but warned that success will hinge on policy consistency, stronger global market access, supply chain reforms, and a decisive shift towards premium, value-added products rather than competing on volume.

Speaking at a panel discussion during the launch of the National Export Development Plan (NEDP) 2026-2030, Dilmah Ceylon Tea Company Chairman Dilhan C. Fernando and CEAT Kelani Holdings Ltd., Managing Director/CEO Ravi Dadlani outlined that Sri Lanka’s export future lies in leveraging quality, sustainability, and innovation rather than attempting to emulate manufacturing giants such as Vietnam and India.

Fernando said the country already possesses most of the ingredients required to achieve the NEDP’s ambitious export targets, but stressed that Sri Lanka must build its strategy around its unique strengths.

‘Sri Lanka must recognise that its competitive advantage is different from countries such as Vietnam. Our focus should be on value rather than volume,’ he said.

He pointed to products such as Ceylon Tea, Ceylon Cinnamon, and Ceylon Cashew, arguing that the country’s export success will depend on premium positioning, branding, and quality differentiation rather than price competition.

‘In the US market, Sri Lanka cannot compete with cassia on price. However, authentic Ceylon Cinnamon has unique characteristics that can command a premium if properly marketed and protected,’ Fernando said.

He warned that achieving such positioning would require significant investment in testing facilities, certification systems, and quality infrastructure, noting that many exporters still incur substantial costs by sending samples overseas for advanced testing.

Fernando also highlighted growing risks from evolving European regulations, insisting Sri Lankan exporters must rapidly strengthen traceability, sustainability, and responsible sourcing systems to maintain market access.

‘The EU’s evolving regulatory framework increasingly requires exporters to demonstrate sustainability, traceability, and responsible sourcing throughout their supply chains,’ he said.

He called for targeted support programs to help businesses comply with emerging standards, particularly in agriculture, where climate resilience and traceability are becoming prerequisites for accessing premium markets.

Meanwhile, Dadlani cautioned against direct comparisons with regional competitors, arguing that Sri Lanka’s challenge is fundamentally different due to the smaller scale of its economy.

‘Comparing Sri Lanka directly with Vietnam or India is difficult because the scale of those economies is vastly different,’ he said.

However, he welcomed the NEDP’s emphasis on expanding beyond traditional export sectors, describing diversification as critical to sustaining long-term growth.

For Dadlani, the biggest determinant of success will be whether the Government can maintain policy stability over several years.

‘The strategy is sound, but its success depends on maintaining policy stability over the next four to five years,’ he said.

He cited CEAT’s post-crisis investments in Sri Lanka as evidence that investor confidence remains intact despite global uncertainties and domestic economic challenges.

‘From our own experience, confidence in Sri Lanka remains strong. One of the largest post-crisis investments in the manufacturing sector came from India, with significant investment in new facilities. This demonstrates that investors continue to see opportunities in Sri Lanka despite global challenges,’ he added.

At the same time, Dadlani warned that weaknesses in domestic supply chains could constrain future growth, pointing specifically to the decline in Sri Lanka’s rubber production, which has forced manufacturers to depend increasingly on imported raw materials.

‘This is an area where coordinated support from institutions and policymakers will be crucial,’ he said.

Both business leaders also pointed to deeper structural reforms needed to support export expansion.

Fernando argued that exporters, particularly small and medium enterprises (SMEs), continue to face excessive bureaucracy and fragmented institutional support.

‘Exporting should not be a process that requires entrepreneurs to navigate multiple institutions and bureaucratic hurdles,’ he said.

He also called for stronger links between universities, research institutions, and industry, noting innovation and commercialisation remain underdeveloped despite Sri Lanka possessing significant research capabilities.

Fernando highlighted Sri Lanka’s limited network of trade agreements as a major disadvantage compared with competitors such as Vietnam.

‘Compared with countries such as Vietnam, Sri Lanka has far fewer free trade agreements. Expanding preferential market access is essential if we are serious about achieving export diversification and value addition,’ he said.

They also said success should be measured not only by export earnings, but by the transformation of the economy itself.

Dadlani said he would view the NEDP as successful if it attracts substantial investment into new export industries, while delivering measurable progress on policy commitments.

Fernando, meanwhile, said Sri Lanka has an opportunity to turn rising global sustainability standards into a competitive advantage.

‘If our exports can successfully position themselves around quality, traceability, geographical indications, and sustainability, then we can achieve premium market positioning and long-term growth,’ he said.

The Government yesterday withdrew plans to lower the Value Added Tax (VAT) registration and Social Security Contribution Levy (SSCL) thresholds, sparing thousands of small and medium-sized enterprises from being brought into the tax net at a time when businesses are grappling with the economic consequences of Cyclone Ditwah and the conflict in the Middle East.

Opening the second reading debate on the Value Added Tax (Amendment) Bill and other changes, Economic Development Deputy Minister Nishantha Jayaweera announced that the Government would retain the existing Rs. 60 million annual turnover threshold instead of proceeding with the reduction to Rs. 36 million proposed in the 2026 Budget.

The intension was net 10,000 businesses into the tax base.

‘The economic recovery was beset by unforeseen events out of our control, Cyclone Ditwah and the Middle East war, which have negatively impacted businesses particularly SMEs who are facing considerable challenges,’ Jayaweera told Parliament.

He said President and Finance Minister Anura Kumara Dissanayake and the Cabinet had decided against proceeding with the reduction, citing concerns that it would place additional pressure on smaller enterprises already facing difficult trading conditions.

The reversal means businesses with annual turnover between Rs. 36 million and Rs. 60 million will remain outside the VAT net. The measure had originally been intended to broaden the tax base and strengthen revenue mobilisation, a key objective of the Government’s fiscal reform agenda.

Jayaweera argued that the Government had already achieved significant improvements in tax compliance without altering the threshold.

According to him, the number of VAT files has increased from around 18,000 when the National People’s Power administration assumed office to more than 35,000 currently, with much of the growth coming through voluntary registration.

He encouraged businesses below the threshold to register voluntarily, arguing that VAT registration enables firms to recover input taxes paid to suppliers while facilitating transactions with larger businesses that require VAT documentation.

The Government, he said, remained committed to expanding the tax base over time as part of a broader effort to create a simpler and more credible tax system capable of supporting lower rates in the future.

The announcement of suspending the VAT threshold reduction was met with raucous protest from the Opposition ranks.

Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva objected that Parliament was being asked to debate provisions that differed materially from those previously considered by the committee.

‘You are now bringing something different to Parliament which goes against the established traditions of this House,’ he said.

De Silva stressed that he was not opposing the decision to retain the higher threshold. Rather, he argued that changes to legislation examined by CoPF should be referred back to the committee before being taken up by Parliament.

‘If you wish to proceed, then suspend the Standing Orders and present a separate motion. If not, why have CoPF and other committees? You might as well do away with them,’ he said.

The intervention prompted a sharp response from Government MP Lakmali Hemachandra, who challenged what she characterised as an expansive interpretation of CoPF’s authority.

Hemachandra argued that Parliamentary committees are empowered to scrutinise and make recommendations, but do not possess approval powers over legislation or Government policy.

‘There is no standing order saying that the Public Finance Committee has to approve any motion coming to Parliament. There is no such standing order saying that the Public Finance Committee has to approve,’ she said.

She maintained that while CoPF plays an important oversight role, the authority to approve or reject legislative proposals ultimately rests with Parliament itself.

‘The Public Finance Committee can make recommendations. The Chairman of the Committee can very well make recommendations, but there is no requirement of approval. Parliament is a body with public finance control. Parliament will approve. If Parliament approves, it will go forward,’ Hemachandra said.

When de Silva argued that her position undermined Parliamentary traditions, Hemachandra rejected the suggestion and insisted she was not questioning the relevance of Parliamentary committees.

‘I am not saying that the Public Finance Committee has nothing to do in Parliament. Any committee in Parliament can make recommendations, but the power to approve lies with Parliament. The Committee cannot approve or disapprove anything that comes into Parliament,’ she said.

Hemachandra further challenged Dr. de Silva’s interpretation of the Standing Orders, arguing that no provision exists requiring committee approval before legislation can proceed to the House.

The exchange exposed differing interpretations of CoPF’s role in the legislative process, particularly when Government amendments diverge from proposals previously examined by the committee.

Speaking again later, MP Hemachandra charged that the various Parliamentary committees, especially a few of its prominent members, cannot be allowed to usurp the rights of 225 members of the legislature. ‘If it was done so because of tradition, as the CoPF Chairman stated, then this has to change,’ she quipped.

Dr. de Silva attributed the Government’s decision to suspend the VAT threshold reduction to pressure brought on by the Opposition on behalf of the people. He said the Opposition was not against widening the tax base, but did not agree to burdening small businesses already fighting for survival. ‘This is a win for the Opposition, through whom people spoke,’ he said.

Lee Hedges PLC has revised the payment structure for its previously approved acquisition of the entire issued share capital of Lanka Realty Developments Ltd. (LRD), a transaction valued at Rs. 3.16 billion.

In a disclosure to the Colombo Stock Exchange, the company said its Board approved new payment terms on 19 June in respect of the acquisition of 112.17 million ordinary shares of LRD from Lanka Realty Investments PLC (LRI) and Eighth Wonder. The transaction had previously been disclosed on 20 March and approved by shareholders via a special resolution on 28 April.

Under the revised arrangement, Lee Hedges will make an initial payment of Rs. 1.1 billion at or prior to execution of the share transfer, with the balance Rs. 2.06 billion payable within six months. The deferred amount will carry interest at the Average Weighted Prime Lending Rate plus 1.5% per annum until settlement in full.

The acquisition comprises the purchase of 57.2 million ordinary shares, representing 51% of LRD, from LRI for Rs. 1.61 billion and 54.96 million ordinary shares, representing the remaining 49%, from Eighth Wonder for Rs. 1.55 billion. Upon completion, Lee Hedges will own 100% of LRD.

The company said a Sale and Purchase Agreement reflecting the revised terms was entered into by Lee Hedges, LRI and Eighth Wonder on 19 June. Following execution of the agreement and receipt of the initial payment, the vendors transferred their shareholdings in LRD to Lee Hedges on the same date.

Lee Hedges further disclosed that the Board of LRI approved the variation of payment terms on 18 June, while the company’s Related Party Transactions Review Committee reviewed and recommended the revised arrangement.

As forecasted, the unsuspecting Saints walked into a bed of Landmines, camouflaged by the beautiful lush green turf of the Sugathadasa Stadium, and as predicted, the enchanting wizardry was at work throughout the game, revealing previously unseen spells of perfectly crafted cross-kick Tries, surprise back hand passes, and the amusement of mid-field Mauls springing following restart kicks, etc. Thus, Joes had to deal with more than what they had planned for, which resulted in a hard tussle for points, every step of the way.

Luckily, both sides had managed to eliminate their lineout problems in this game, which presented them fair chances of attacking with their Mauls, and getting close to their respective finish lines, although no Maul Tries were scored. Since it was a neck-to-neck contest throughout, it makes no sense to analyse the two halves separately.

The stout Tankers rammed the pedal to the metal in order to become an eligible elite member of the Super-League above the current League, by matching up to the standards of the ‘invincible’ Lions, making them twirl, turn, wiggle and break immense sweat of discomfort, before going down like the fallen heroes of D-Day in WWII. They were warmly received post-match by the ecstatic Zahira proponents with loud cheering, at the backdrop of confetti showering down and decorating the orange skies with colours of their Alma Mater.

Our prophecy that was professed when we kicked off the League with the Teaser Preview titled ‘Trinity leads charge in redefining Schools Rugby’, was fulfilled by Trinity, by being responsible for creating a monster that reflects their symmetrical mirror image, as the Tankers mimicked the Lion King’s every skill, every move and every tactic, that prevents oppositions from executing their pre-planned actions to perfection, if not prevent them altogether. Moreover, their ability to manufacture Tries at will from thin air against the calibre of Trinity, left the latter’s followers dumbfounded, as the rest raved in ecstasy.

The pressure situation at Maradana was immense and somewhat similar to the base of the Mariana Trench, yet it seldom affected the ball handling of either team, as 4 and 5 errors in such a tense brawl is excellent by any standards. However, human emotions were at the peak of Mount Everest, which led to an unusual number of other mistakes by both sides, particularly penalties. Our prediction with regard to Trinity’s 5 lineout losses was close, as they lost 4 altogether including a proper turnover by Zahira. However, our prediction that Trinity would force 4 knock-ons was made completely incorrect by the Zahirian coaching unit in reading, which can be perceived as one of the positives of the existence of this column. In fact, Zahira knocked-on just once in this game, and all the other 3 were forward passes.

ICC Chairman Jay Shah who met with the President of Sri Lanka Anura Kumara Dissanayake on a recent visit to Colombo shared his views with his meeting with the President in a social media post X on Friday.

‘It was a privilege to meet His Excellency President @anuradisanayake today and discuss the current status of cricket in Sri Lanka. Our discussions focused on increasing opportunities for emerging players, supporting grassroots and youth development programmes, and leveraging cricket as a vehicle for social impact and economic growth. ‘We also exchanged views on the role Sri Lanka continues to play in hosting major international events and contributing to the global development of our sport. Sri Lanka holds a special place in the history of cricket, and I look forward to working closely with all stakeholders to further strengthen the game and create new opportunities for future generations.

My sincere thanks to His Excellency for his time and unwavering support for cricket,’ Jay Shah posted on X.

The recent easing of tensions involving the United States, Iran, and Israel has brought welcome relief to global energy markets. Earlier fears of disruptions to Middle Eastern oil supplies and critical shipping routes had pushed crude prices higher, raising concerns across import-dependent economies. As those fears recede, oil prices have fallen from recent peaks, offering a timely economic reprieve for countries such as Sri Lanka.

For Sri Lanka, the significance extends beyond cheaper fuel. At a time when the country is still navigating a fragile post-crisis recovery, lower oil prices provide an unexpected external tailwind. The real question is whether this temporary advantage can be transformed into lasting economic resilience.

Sri Lanka›s economic fortunes remain closely tied to global energy markets. Unlike oil-producing nations that benefit from rising crude prices, Sri Lanka imports almost all of its petroleum requirements. Fuel costs influence transportation, logistics, manufacturing, electricity generation, and ultimately the cost of living. Every increase in oil prices raises demand for foreign exchange, places pressure on the balance of payments, and risks fuelling inflation.

The experience of 2022 remains a powerful reminder of this vulnerability. Fuel shortages, long queues, and a severe foreign exchange crisis exposed the extent to which external shocks can destabilise the economy. Although significant progress has been made since then, Sri Lanka›s dependence on imported energy remains largely unchanged.

This is why the recent decline in oil prices matters.

Unlike fiscal stimulus, which often requires additional borrowing, or monetary easing, which can carry inflationary risks, lower oil prices improve economic conditions without requiring policy intervention. A reduced fuel import bill means lower foreign exchange outflows, stronger external balances, and less pressure on the rupee. It also helps contain imported inflation, benefiting households and businesses alike.

The gains extend across the economy. Manufacturers benefit from lower production costs, transport operators face reduced fuel expenses, and sectors such as tourism, aviation, and logistics enjoy improved operating margins. Agriculture, too, benefits from lower distribution and fuel costs. Collectively, these developments strengthen economic activity at a crucial stage of recovery.

Perhaps the most important benefit lies in the area that matters most for Sri Lanka›s long-term stability: external resilience.

The 2022 crisis was fundamentally a balance-of-payments crisis. The country simply ran out of sufficient foreign exchange to finance imports and meet external obligations. While debt restructuring and IMF-supported reforms have improved the outlook, maintaining adequate foreign exchange reserves remains critical.

Lower oil prices directly support this objective by reducing import costs and creating opportunities to rebuild reserves. Stronger reserves improve confidence, enhance the country›s ability to withstand future shocks, and provide policymakers with greater room to manoeuvre during periods of global uncertainty.

Yet many consumers may wonder why falling global oil prices do not always translate immediately into lower living costs.

Structure of domestic energy pricing

The answer lies in the structure of domestic energy pricing. Retail fuel prices are influenced not only by international crude markets but also by exchange rate movements, taxation, distribution costs, and the financial position of state-owned enterprises. Electricity tariffs are even more complex.

As energy experts, including Sri Lanka Energy Managers Association President Dr. Amila Wickramasinghe, have pointed out, fuel prices can be adjusted relatively quickly. Electricity tariffs, however, are shaped by broader operational, fiscal, and political considerations. As a result, the benefits of lower oil prices may take time to filter through to households and businesses.

Sri Lanka’s electricity sector also remains structurally vulnerable to fuel price fluctuations. During periods of low hydropower generation, thermal power assumes a larger role in electricity production. When fuel prices rise, generation costs increase sharply. Lower oil prices provide temporary relief, but they do not resolve the underlying inefficiencies and vulnerabilities within the power sector.

This brings us to the larger policy question: has Sri Lanka become more resilient, or is it simply enjoying a favourable moment?

Energy markets remain among the most geopolitically sensitive sectors of the global economy. Renewed tensions in the Middle East, disruptions to shipping routes, or unexpected supply constraints could quickly reverse recent price declines. Sri Lanka has not been insulated from these risks; rather, it has been granted a temporary breathing space.

The challenge now is to use that breathing space wisely.

Renewable energy development

Accelerating renewable energy development should remain a national priority. Sri Lanka possesses considerable solar and wind potential, yet much of it remains underutilised. Reducing dependence on imported fossil fuels is not merely an environmental objective; it is an economic necessity.

At the same time, continued investment in grid modernisation, power sector efficiency, and energy infrastructure will be essential. Foreign exchange reserves must continue to be rebuilt during periods of favourable external conditions, while fiscal and monetary discipline should not be relaxed simply because short-term pressures have eased. Expanding and diversifying export earnings remains equally important if Sri Lanka is to reduce its exposure to external shocks.

The recent decline in oil prices has undoubtedly improved Sri Lanka›s near-term economic outlook. It eases pressure on reserves, supports price stability, and creates a more favourable environment for business activity and growth.

However, it would be a mistake to view this as a permanent shift. Oil markets remain volatile, geopolitical risks remain present, and many of the structural weaknesses that contributed to Sri Lanka›s crisis have yet to be fully addressed.

Sri Lanka has been handed a temporary geopolitical dividend. Whether it becomes a lasting economic gain will depend not on global oil markets but on the country›s ability to strengthen its economic foundations before the next external shock arrives.

Lower oil prices offer welcome relief. They should also serve as a reminder that true economic security lies not in favourable geopolitics, but in reducing the vulnerabilities that make such developments so consequential in the first place.

Viranga Yeshan, crowned the Most Valuable Player in the Governor’s Trophy 50-over tournament produced an outstanding innings of 119* off 237 balls inclusive of 10 fours to lift Old Dharmapalians SC from a despairing 82-5 to a competitive total of 259-7 against Saracens SC on the first day of the Governor’s Trophy two-day tournament match played at Surrey Village Cricket Ground, Maggona yesterday.

Asked to bat first, Old Dharmapalians SC top order were in tatters as right-arm seamer Kavindu Nimasara reduced them to 31-4 with three wickets in his first spell. Yeshan dug in and kept one end going with Tharindu Lakshan (33 off 40 balls, 3 fours, 1 six) helping him in a recovery stand of 51. It was followed by further resistance from Janidhu Jayawardena (14 off 43) in adding 42 for the seventh wicket and skipper Shanaka Sampath who resisted the Saracens SC bowling with a defiant half-century (54* off 146 balls, 4 fours, 1 six) putting together a valuable unfinished partnership of 108 off 263 balls with Yeshan. In their desperation to break the partnership Saracens SC used as many as nine bowlers. The match continues on its second day today.

The final result of the match is crucial for both teams as they seek promotion to Tier B for next season along with Lankan CC. Lankan CC are currently on top with 2 points from 2 matches having completed their matches – both of which were drawn. Saracens SC are in second place with Old Dharmapalians SC third. Both teams have a point each having drawn one game. If all three teams finish on equal number of points the champion team will be decided on the net run rate. The champions will be promoted to Tier B. – [ST]

Scores:

Old Dharmapalians SC 259-7 at close (Viranga Yeshan 119*, Tharidu Lakshan 33, Shanaka Sampath 54*, Kavindu Nimsara 4/65, Dilshan Mendis 2/56) v Saracens SC

Sri Lanka must move beyond the 25-year-old India-Sri Lanka Free Trade Agreement (ISFTA) and conclude the long-discussed Economic and Technology Cooperation Agreement (ETCA) with India if it is to integrate into regional value chains, attract investment and accelerate economic growth, Samagi Jana Balawegaya (SJB) MP Harsha de Silva said.

Addressing the forum titled ’25 Years of ISFTA – Powering the Next Wave of Trade, Investment and Growth,’ organised by the High Commission of India in Colombo in collaboration with the Indo Lanka Chamber of Commerce and Industry, de Silva argued that Sri Lanka risks missing a historic opportunity if it fails to align itself with India’s rapid economic expansion.

‘We have to move from the old first-generation trade agreement to a second-generation agreement, where we integrate with manufacturing value chains and production networks,’ he said.

Dr. de Silva, the original ISFTA helped liberalise trade, but future growth would depend on Sri Lankan firms becoming part of Indian and regional supply chains through improved access to raw materials, intermediate goods and investment opportunities.

He said the rationale for ETCA was straightforward: it would enable Sri Lanka to integrate more deeply with India’s vast internal market and production ecosystem.

The SJB MP noted that while discussions on a Comprehensive Economic Partnership Agreement (CEPA) and later ETCA have continued for nearly 15 years, progress has remained stalled despite India’s emergence as one of the world’s fastest-growing major economies.

‘India has gone ahead and signed trade agreements with many countries while we are still stuck in the same place and unable to move beyond the FTA,’ he said.

Dr. de Silva argued that Sri Lanka should negotiate future trade arrangements based on value-chain rules rather than traditional tariff concessions alone, allowing domestic industries to supply inputs into India’s expanding manufacturing base.

While supporting ETCA, he acknowledged concerns over liberalisation of the services sector, which accounts for around 60% of Sri Lanka’s GDP.

He said the debate should move beyond simplistic arguments for or against opening services and instead focus on designing appropriate safeguards.

‘What services do we open? How do we open them? What regulations and accreditation systems do we put in place?’ he asked, stressing that professional standards and workforce protections must be incorporated into any agreement.

He also highlighted foreign direct investment (FDI) as a key benefit of a modern economic partnership with India, arguing that stronger legal and regulatory certainty could encourage greater investment inflows.

Dr. de Silva questioned why ETCA had received little political attention despite repeated high-level exchanges between Sri Lanka and India particularly under the current Government, noting that references to the agreement had been largely absent from recent joint statements issued during official visits.

The MP suggested that political leadership would be required to finally move negotiations forward.

At the same time, he stressed that deeper integration would require India to address longstanding concerns raised by Sri Lankan exporters regarding non-tariff barriers.

Dr. de Silva pointed to difficulties relating to product certification, testing requirements and logistics constraints, arguing that these practical obstacles often undermine the benefits of formal trade agreements.

‘If India is not willing to accept certification from Sri Lankan authorities, how can exports move smoothly?’ he asked.

He also highlighted transportation and port-related inefficiencies, saying that such barriers must be resolved if trade ties are to expand meaningfully.

Dr. de Silva criticised what he described as persistent anti-CEPA and anti-ETCA lobbying that has delayed economic integration efforts for years.

He argued that Sri Lanka’s long-term growth prospects depended on looking beyond its domestic market and capitalising on opportunities presented by India’s economic rise.

‘India is growing rapidly. Tamil Nadu, Karnataka, Andhra Pradesh and Telangana are all expanding at a remarkable pace. We are just a short distance away, yet we have not been able to connect ourselves to that growth story,’ he said.

The MP warned that Sri Lanka could be left behind if it continues to delay reforms and integration measures, stressing that the country’s future growth would depend on expanding beyond the limits of its domestic market.

‘The only way we can grow much faster is if our marketplace extends beyond the shores of this island,’ he said.

Dr. de Silva also pledged bipartisan support for any future agreement that is beneficial to both countries, stating that the Opposition would back efforts to advance economic cooperation with India if the final outcome serves Sri Lanka’s national interest.