Category: Daily Financial Times

Opposition Leader Sajith Premadasa yesterday accused the Government of attempting to amend the Constitution to increase the retirement age of judges without first addressing existing vacancies in the higher judiciary, warning that such a move could undermine judicial independence and democratic governance.

Raising the issue in Parliament, Premadasa questioned the rationale for pursuing constitutional changes while several vacancies remain unfilled in the superior courts.

‘This Government is undermining the judiciary and democracy,’ he charged.

Responding on behalf of the Government Justice and National Integration Minister Harshana Nanayakkara rejected the allegations, insisting that any measures under consideration would be pursued within the framework of the Constitution and the rule of law.

‘We have no intention of breaking the rule of law. We have no intention of using any posts as carrots for promotions for anybody,’ Nanayakkara told Parliament.

He said the Opposition Leader appeared to be drawing conclusions about proposals that had not yet been finalised.

‘I believe the Honourable Opposition Leader presumed a lot of things that we were not even intending to do and then he made comments on that. But I can assure you, whatever we do will be lawful, constitutional and it will be debated before this Parliament,’ the Minister said.

Nanayakkara further stated that the relevant processes were being carried out lawfully with the involvement of the Chief Justice, the President and the Parliamentary Council.

‘So therefore, the Honourable Leader of the Opposition should have no fear,’ he added.

Premadasa, however, rejected the suggestion that his concerns were based on assumptions and pointed to opposition expressed by several legal organisations.

‘Let me just explain the fact that I’m not presuming anything, nor am I making any assumptions,’ he said.

Premadasa noted that the Bar Association of Sri Lanka (BASL) had publicly opposed the Government’s proposal to increase the retirement age of judges and questioned whether that organisation was also acting on assumptions.

He further referred to concerns raised by the Colombo High Court Lawyers’ Association and other legal bodies regarding the proposed constitutional amendment.

‘The Colombo High Court Lawyers Association have also expressed their opposition to the draconian Act that you all are formulating, which is to amend the Constitution for the sole purpose of extending the pensionable years,’ he said.

Describing the proposal as inconsistent with democratic principles, Premadasa argued that the Government had not received a mandate to pursue measures that could weaken judicial independence.

‘You all have got a mandate to promote democracy, to protect the independence of the judiciary,’ he said.

The Opposition Leader also cited concerns raised by the Commonwealth Lawyers Association, arguing that criticism of the proposal extended beyond domestic legal organisations.

‘All the lawyers’ associations, all the legal luminaries and everyone with a standing and most of all, most of the citizens of this country, they hate the steps that you are trying to take,’ Premadasa said.

Sri Lanka’s next phase of development should be measured not merely by economic indicators but by whether it creates opportunities for young people to build fulfilling lives in the country, University of Colombo Economic Students’ Association President Batya Peter said, offering a candid assessment of the aspirations and anxieties shaping a generation entering the workforce.

Speaking at the launch of the World Bank Group’s Sri Lanka Country Partnership Framework (CPF) 2026-2030 on Monday, Peter argued that employment, from a youth perspective, extends beyond earning an income and is inseparable from broader questions about long-term economic security and quality of life. Her perspectives were a curation of ideas and views shared by Colombo University students who engaged in extensive breakout sessions prior to the official public launch of the CPF.

‘Ultimately, what I’m trying to say is that this partnership framework shouldn’t just be about increasing the number. It’s about creating opportunities so that people can build the lives that they value in the country that they call home. So I really hope that that remains at the heart of the vision of the Country Partnership Framework,’ she said.

Her remarks offered policymakers, development partners and business leaders a window into how younger Sri Lankans are evaluating the country’s economic recovery and weighing decisions about whether to remain in the country or seek opportunities overseas.

Having recently completed her degree at the University of Toronto, Peter said many graduates view employment decisions through a broader lens than previous generations.

‘For many young people, getting a job is much more than just earning a salary,’ she said. ‘If you choose to work here, it means that you’re choosing to build a life here.’

She said questions around independent living, supporting ageing parents, home ownership and raising a family increasingly shape career choices and migration decisions.

Peter acknowledged that Sri Lanka had made significant progress in restoring macroeconomic stability since the 2022 crisis but cautioned that recovery remained fragile amid external shocks, climate risks and a rapidly changing global economy.

‘For young people like myself, stability is the foundation,’ she said, noting that confidence in institutions, economic resilience and future opportunities was essential if young people were to envision long-term futures in Sri Lanka.

A recurring theme in her presentation was that the debate on development should move beyond the quantity of jobs created towards the quality of employment opportunities available.

‘The challenge then is not only do we have enough jobs. It’s whether these jobs offer fair wages, opportunities for growth, and whether they align with our skills and aspirations,’ she said.

Peter identified several structural gaps that continue to constrain youth employment prospects.

Foremost among them was what she described as an ‘opportunity gap’, characterised by an insufficient supply of quality private sector jobs. While the public sector had historically served as a major employer, she argued that sustainable job creation would increasingly depend on private enterprise.

She also pointed to a persistent skills mismatch between university education and industry requirements, particularly affecting graduates from public higher education institutions who often complete lengthy academic programs with limited workplace exposure.

According to Peter, many graduates enter the labour market only to discover that the competencies sought by employers differ substantially from those acquired through formal education. She suggested greater collaboration between universities and industry, including curriculum development, internships and research partnerships, to bridge the gap.

Another challenge was an information deficit, with students often unaware of emerging career pathways and specialised opportunities beyond traditional professions.

‘There are a lot of niche areas within our sectors, and we’re just not aware of those jobs,’ she said, arguing that better visibility of opportunities could improve matching between skills and labour market demand.

Peter also highlighted concerns around job quality, including fair compensation, career progression, continuous learning opportunities, work-life balance and a sense of purpose in employment.

She noted that labour market barriers disproportionately affect women, citing low female labour force participation, inadequate childcare facilities and transport constraints as factors limiting workforce participation.

The presentation further underscored the need to foster a stronger culture of entrepreneurship and innovation. Peter said many young Sri Lankans remain highly risk-averse despite the growing opportunities created by digital technologies and changing business models.

She called for programs that reward innovation, expand access to mentorship and financing, and create a more supportive ecosystem for entrepreneurship.

Beyond labour market reforms, Peter urged policymakers to involve youth directly in the design and implementation of development initiatives.

‘Too often, decisions that affect youth are done by a few people behind closed doors,’ she said, arguing that youth participation would improve policy outcomes while fostering greater ownership of reform efforts.

She advocated moving young people from being passive beneficiaries of development programs to active contributors and co-creators of solutions.

Earlier, the World Bank Group Country Manager for Sri Lanka, Gevorg Sargsyan, said the CPF’s success would depend heavily on private sector participation and pledged that addressing youth aspirations would remain a central priority.

‘We are making it our priority,’ Sargsyan said, responding to concerns raised by students regarding employment and future opportunities.

(CPF) 2026-2030 aims to help sustain Sri Lanka’s economic recovery by supporting the Government’s goal of achieving more than 7% medium-term growth while creating quality private sector-led jobs.

Backed by up to $ 2 billion in financing and investments, the framework focuses on improving the business environment, expanding trade and exports, strengthening infrastructure and renewable energy, boosting employment in tourism and agriculture, particularly in underserved regions, and enhancing resilience to climate and economic shocks.

A central objective is to generate sufficient quality employment opportunities for the nearly one million young Sri Lankans expected to enter the labour market over the next decade

Forbes and Walker Tea Brokers Ltd., Sri Lanka’s largest tea broker, and Forbes and Walker Warehousing Ltd., a logistics and warehousing provider, have been awarded Carbon Neutral Certification by the Sri Lanka Climate Fund Ltd., reinforcing the group’s commitment to environmental stewardship, responsible business practices and sustainable value creation.

The certification recognises the successful quantification, verification and offsetting of the organisations’ greenhouse gas (GHG) emissions through the Forbes and Walker Rooftop Solar Project. It also reflects the Group’s efforts to reduce its environmental footprint while aligning with internationally recognised sustainability standards.

The achievement comes as global markets place increasing emphasis on sustainability and environmental compliance. Forbes and Walker said it remains committed to investing in initiatives that support climate action while delivering long-term value to stakeholders.

The certification also comes at a time when Sri Lankan exporters face increasingly stringent sustainability and environmental requirements in international markets, particularly in the European Union.

Recent regulatory developments covering packaging, waste management, green claims, recyclability and product sustainability are expected to have significant implications for exporters.

By adopting measurable sustainability practices, Forbes and Walker said it is better positioned to meet evolving regulatory requirements while strengthening its role within international supply chains.

As an intermediary between carbon neutral producers and buyers, the company said it helps extend sustainability practices across the supply chain, creating a pathway for responsibly produced tea.

Forbes and Walker said it remains focused on advancing initiatives that reduce emissions, promote renewable energy and support Sri Lanka’s transition towards a low-carbon economy.

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.

Home Lands Group has marked another significant milestone with the acquisition of its second land parcel within Port City Colombo’s prestigious Central Park District.

The newly acquired land parcel, spanning over three acres in extent, is similar in size and located adjacent to the land previously purchased for the landmark Central Park Boulevard Port City Colombo development, further strengthening Home Lands’ growing footprint within Sri Lanka’s most ambitious urban development project.

The official signing ceremony for the acquisition of the new land parcel took place at Port City Colombo. The event was attended by China Harbour Engineering Company Ltd., (CHEC) Chairman Bai Yinzhan, South Asia and South East Asia Managing Director Wang Gang, CHEC Port City Colombo Managing Director Xiong Hongfeng, and Home Lands Group Chairman/Managing Director Nalin Herath, along with senior representatives of both CHEC Port City Colombo and Home Lands Group.

Home Lands’ decision to further expand its presence within Port City Colombo reflects both confidence in the city’s future and the company’s own financial strength and long-term strategic vision. Notably, the acquisition has been undertaken entirely by Home Lands as a single-developer investment, demonstrating the company’s financial stability, investment capacity, and commitment to driving transformative developments independently.

The new land acquisition comes just three months after Home Lands secured the land parcel for its recently launched twin tower high-rise development Central Park Boulevard Port City Colombo, demonstrating the company’s continued confidence in the strategic importance of the Central Park District at Port City Colombo.

The Central Park District’s 40-acre modern lush green parkland with scenic waterways, combined with futuristic high-rise developments, offers a unique ecosystem where residents can live an enriched life amidst nature, greenery, high-rise luxury, and Indian Ocean views.

Herath said: ‘Home Lands is proud to make another strategic investment within Port City Colombo, reaffirming our confidence not only in this landmark development but also in Sri Lanka’s future. Every investment we make is ultimately an investment in the growth, progress, and potential of our nation.’

While Port City Colombo continues to evolve into one of South Asia’s most significant urban developments, Home Lands’ latest acquisition further reinforces the company’s position as the pioneering force that’s taking Sri Lankan real estate to the world. Backed by a proven track record, strong financial foundations, and an unwavering commitment to excellence, Home Lands continues to invest in the future of Sri Lanka’s real estate industry, creating developments that reflect the highest standards of innovation, and excellence.

A master-planned city developed to international standards, Port City Colombo has been envisioned as a next-generation urban destination designed to attract international investment, global businesses, and world-class developments. Combining modern infrastructure, sustainable urban planning, advanced connectivity, and a globally competitive business environment, the city represents a transformative vision for Sri Lanka’s future economic growth and international positioning.

The Supreme Court yesterday granted special leave to appeal against a Court of Appeal ruling that dismissed a petition challenging the parliamentary eligibility of Public Security Minister Ananda Wijepala.

A three-judge bench comprising Justices Janak De Silva, Menaka Wijesundera and Sampath Wijeratne granted leave to proceed with the appeal and fixed the matter for argument on 3 November.

The appeal was filed by Sri Lanka Podujana Peramuna activist Renuka Dushyantha Perera, who is seeking a declaration that Wijepala was disqualified from serving as a Member of Parliament.

In the original petition, the petitioner alleged that Wijepala, while serving as an MP, had also held the position of Chief of Staff to the President, which, according to the petitioner, rendered him a public officer and therefore ineligible to continue as a Member of Parliament.

The petitioner further sought a declaration that Wijepala was not entitled to sit or vote in Parliament and was disqualified from holding office as an MP.

The Court of Appeal dismissed the writ application on 7 May 2025 after upholding a preliminary objection raised by the Attorney General. The objection argued that the petitioner had failed to name the necessary parties as respondents in the action.

Counsel Vishva Vimukthi appeared for the petitioner, while President’s Counsel Geoffrey Alagaratnam represented Minister Wijepala.

At the Science College Ground, the hosts produced a dominant display to overwhelm Mahanama College 52/7.

Science ran in eight tries and added six conversions to complete a comprehensive victory. Mahanama managed a solitary converted try but struggled to contain the relentless attacking pressure from the home side throughout the match. The convincing win further strengthened Science College’s position in the Bowl Segment competition.

Meanwhile, at the Air Force Ground in Ratmalana, Lumbini College secured a comfortable 28/13 victory over Prince of Wales College. Lumbini crossed the line for four tries and successfully converted all four, showing excellent accuracy off the tee. Prince of Wales responded with two tries and a penalty but were unable to match the attacking flair and disciplined performance displayed by the Colombo school.

Science College occupy second position, while Mahanama College and Prince of Wales College occupy the bottom two places in the standings.

The bottom two teams in the Bowl segment at the conclusion of the tournament will be relegated, making way for Vidyartha College and Dharmaraja College, who will be promoted to Division 1A in 2027.