Sri Lanka hosts 4th meeting of BIMSTEC Network of Tour Operators

Sri Lanka successfully hosted the 4th Meeting of the BIMSTEC Network of Tour Operators on 21-22 July 2026 at the Sheraton Colombo.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organisation comprising seven member states: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. Connected by the Bay of Bengal, these countries share a common interest in promoting regional cooperation across multiple sectors, including tourism.

The keynote remarks, delivered by Deputy Minister of Tourism Prof. Ruwan Ranasinghe, highlighted the immense potential of the BIMSTEC region to emerge as a diverse and globally attractive tourism destination. He emphasised the region’s rich cultural heritage, spiritual traditions, biodiversity, natural beauty, and historical significance as key strengths that position it as a compelling destination for international travellers.

Foreign Affairs Ministry Additional Secretary and Head of Delegation of the host member State, Sri Lanka S.L. Naseer was elected Chair and presided over the two-day meeting.

The meeting brought together delegations from all seven BIMSTEC member states and concluded with productive discussions aimed at strengthening regional tourism cooperation. Participants emphasised that BIMSTEC tourism initiatives should deliver tangible economic, social, and cultural benefits to all member states.

During the sessions, each member state delivered presentations on ‘Measures to Promote Intra-BIMSTEC Tourism, its Modalities, and the Role of Tour Operators.’ Discussions focused on enhancing regional tourism through greater collaboration, improved connectivity, and the active engagement of tour operators.

The meeting also reviewed the operational modalities of the proposed BIMSTEC Tourism Circuits, including the Buddhist Circuit, Temple Circuit, Ecotourism Circuit, Cruise Circuit, and Adventure Circuit. Deliberations covered key aspects such as identifying destinations and routes, improving regional connectivity, facilitating travel, strengthening branding and promotion, enhancing stakeholder coordination, building capacity, and establishing effective monitoring and evaluation mechanisms.

A significant outcome of the meeting was the discussion on promoting the BIMSTEC Ramayana Trail as a regional tourism product. Member states recognised its potential to strengthen intra-BIMSTEC tourism while fostering cultural exchange and enhancing people-to-people connectivity across the region.

Delegates also discussed the establishment of a BIMSTEC Homestay Tourism Network as a voluntary platform to facilitate cooperation among member states and promote community-based tourism.

Following the conclusion of the official sessions, delegates participated in a Colombo City Tour and a familiarisation visit to Kandy, providing them with the opportunity to experience Sri Lanka’s rich cultural heritage and diverse tourism attractions firsthand. These visits further showcased Sri Lanka as an attractive and multifaceted tourism destination while strengthening ties among the participating BIMSTEC member states.

The future of the Sri Lankan Elephant

Sri Lanka possesses one of the world’s greatest opportunities to secure the future of the endangered Sri Lankan elephant (Elephas maximus maximus). Achieving this will require visionary leadership, science-based conservation and a Presidential Initiative to transform human-elephant coexistence into a national priority.

Before the first rays of sunlight illuminate Sri Lanka’s ancient reservoirs, another civilisation is already awake.

Across Sri Lanka’s dry zone forests, elephant herds move silently through the morning mist, pausing only briefly before disappearing into a mosaic of scrub forest, abandoned chena and grassland. As birdsong gathers with the dawn, the landscape comes alive in a rhythm that has changed little since long before the first kingdoms rose at Anuradhapura.

For more than two millennia, elephants have shared this island with its people. They walked beside the architects of Sri Lanka’s hydraulic civilisation, whose vast irrigation systems transformed a dry landscape into one of the ancient world’s greatest agricultural societies. They became symbols of kingship and statecraft, guardians of sacred processions and enduring icons of Buddhist compassion towards all living beings. Few countries possess such a deep historical, cultural and spiritual relationship with a wild animal.

Sri Lanka’s ancient hydraulic civilisation was founded on an intricate network of reservoirs, canals and forested catchments that sustained both people and wildlife. The forests surrounding these irrigation systems protected water supplies, while elephants continued to move through extensive dry-zone landscapes with relatively little conflict.

This enduring relationship reminds us that coexistence is not a modern aspiration but a principle deeply embedded in the island’s environmental history.

The challenge before us is not to invent a new relationship with elephants, but to reimagine an ancient one for the twenty-first century.

Yet today this remarkable relationship stands at a crossroads.

Across Sri Lanka, Human-Elephant Conflict (HEC) has become one of the nation’s most complex environmental and development challenges. Every year, rural families suffer crop losses, damaged property and tragic fatalities. Hundreds of elephants are killed through gunfire, electrocution, explosive bait and other human-induced causes. Despite decades of investment, conflict continues to escalate in many parts of the country, imposing immense social, ecological and economic costs.

These realities are often portrayed as an unavoidable confrontation between people and wildlife. They are not.

They are the consequence of how landscapes have been planned, managed and shared.

As the world marks World Elephant Day on 12 August, Sri Lanka has an opportunity to ask a far more important question than how to reduce annual conflict statistics.

Can this island become the world’s leading example of long-term human-elephant coexistence?

Increasingly, science suggests that the answer may be yes.

The urgency could scarcely be greater. Sri Lanka supports one of the highest densities of wild Asian elephants anywhere in the world, yet an estimated 70% of these animals live outside formally protected areas, sharing landscapes with rural communities. In 2023, the country recorded 488 elephant deaths and 154 human fatalities arising from Human-Elephant Conflict, one of the highest annual tolls recorded anywhere in the world. These figures illustrate not only the scale of the challenge, but also the urgency of replacing reactive conflict management with long-term coexistence.

Beyond conflict: Understanding the real challenge

Public debate frequently frames Human-Elephant Conflict as a contest between farmers and elephants.

The evidence tells a different story.

Research over the past two decades has demonstrated that approximately 70% of Sri Lanka’s wild elephants live outside formally protected areas. Rather than inhabiting remote forests alone, they occupy a complex mosaic of secondary forests, scrublands, traditional chena cultivation, village commons and agricultural landscapes.

This is not an ecological anomaly.

It is the natural ecology of the Sri Lankan elephant.

Unlike many mainland populations that depend heavily on extensive forests, Sri Lankan elephants thrive in dynamic landscapes where seasonal disturbance encourages the growth of grasses, shrubs and young vegetation. For centuries, traditional farming systems inadvertently created habitats that elephants utilised outside cultivation seasons.

The challenge emerged as land use changed.

Large-scale irrigation schemes, permanent settlements, expanding agriculture, highways and other infrastructure gradually fragmented traditional elephant ranges. Landscapes that once accommodated seasonal movement became increasingly divided, bringing elephants and people into direct competition for space and resources.

Seen from this perspective, Human-Elephant Conflict is not primarily a wildlife problem.

It is a landscape planning challenge.

Ultimately, the future of the Sri Lankan elephant will be determined not by the strength of our fences, but by the wisdom of our landscapes.

It is equally a governance challenge, requiring coordination between agencies responsible for wildlife, forests, agriculture, irrigation, transport, regional development and local government.

Above all, it is a sustainable development challenge.

No nation has succeeded by attempting to conserve elephants in isolation from broader land-use planning. Nor has any country eliminated conflict simply by building more fences or relocating animals.

The future depends upon designing landscapes where people and elephants can coexist safely.

That requires a fundamentally different way of thinking.

Sri Lanka’s extraordinary opportunity

Paradoxically, the very factors that make Sri Lanka one of the world’s most challenging places for elephant conservation may also make it one of the most promising.

Demography is central to this story.

While much of Asia continues to experience intense population pressure, Sri Lanka is entering a new demographic phase. Population growth has slowed significantly and is projected to stabilise before gradually declining later this century. Unlike many neighbouring countries, Sri Lanka is unlikely to experience continuing expansion of its overall human footprint.

This seemingly simple demographic trend has profound implications.

A stable population creates the possibility of establishing permanent coexistence landscapes without the relentless outward expansion of settlements into remaining elephant habitats.

By contrast, India, home to around 60% of the world’s wild Asian elephants, faces the immense challenge of accommodating hundreds of millions of additional people before its population eventually stabilises. Expanding infrastructure, agriculture and urbanisation continue to place extraordinary pressure on wildlife corridors essential for maintaining genetically connected elephant populations.

Thailand presents almost the opposite scenario. Its ageing population and rural depopulation offer opportunities for ecological restoration, yet its comparatively small and fragmented elephant populations remain largely confined to isolated forest complexes.

Sri Lanka occupies a unique middle ground.

Its human population is stabilising.

Its elephants have already demonstrated exceptional adaptability to shared landscapes.

Its conservation challenge is therefore not whether coexistence is possible.

It is whether the nation possesses the vision to organise that coexistence scientifically.

A national vision for coexistence

The future of the Sri Lankan elephant will not be secured by protecting isolated pockets of wilderness. It will be secured by protecting living landscapes.

This represents perhaps the most important shift in conservation thinking of the twenty-first century.

For generations, conservation was largely based on a simple assumption: wildlife belongs inside protected areas, while people belong outside them.

Although national parks remain indispensable, experience throughout Asia has demonstrated that this approach alone cannot guarantee the survival of wide-ranging species such as elephants, whose ecological requirements extend far beyond the boundaries marked on official maps.

Sri Lanka illustrates this reality more clearly than almost any other country.

Scientific studies have consistently shown that around seventy percent of the island’s wild elephants live outside the formal protected-area network. Far from being ecological refugees, they inhabit landscapes that have long combined forests, scrublands, village commons and traditional chena cultivation. These are not marginal habitats but functioning ecosystems that have sustained both people and elephants for centuries.

Recognising this reality changes the conservation question entirely.

Instead of asking how elephants can be confined within protected areas, the more important question becomes how shared landscapes can be managed so that people and elephants can coexist safely and productively.

That shift in perspective transforms conservation from a wildlife issue into a national development strategy.

From conflict management to landscape stewardship

For more than six decades, Sri Lanka’s response to Human-Elephant Conflict has relied heavily upon reactive interventions, elephant drives, translocations, forest-boundary electric fencing and emergency responses after conflict has already occurred.

Although intended to protect both people and wildlife, experience has repeatedly demonstrated their limitations.

Elephants possess remarkable intelligence, extraordinary spatial memory and strong attachment to their traditional home ranges. Animals driven from familiar landscapes frequently attempt to return, sometimes travelling remarkable distances and creating new conflict elsewhere. Forest-boundary fences, meanwhile, often require extensive maintenance and are regularly breached as elephants seek food and water beyond protected areas.

The consequence is an expensive cycle of intervention that addresses symptoms more effectively than underlying causes.

Modern conservation science offers a different philosophy.

Rather than attempting to exclude elephants from human landscapes, it seeks to design landscapes that minimise conflict while accommodating the ecological needs of both species.

This approach draws upon landscape ecology, adaptive management and evidence-based conservation.

It recognises that successful coexistence depends upon ecological connectivity, informed land-use planning and meaningful participation by the communities who share space with elephants every day.

The objective is not the elimination of elephants from rural landscapes.

Nor is it the unrealistic expectation that conflict can disappear entirely.

The objective is coexistence: reducing risk while maintaining healthy elephant populations within functioning ecosystems.

Elephant managed ranges: Rethinking conservation

One of the most significant innovations emerging from Sri Lanka’s own conservation experience is the concept of Elephant Managed Ranges (EMRs).

Unlike conventional protected areas, EMRs acknowledge that elephants naturally utilise landscapes outside national parks and wildlife reserves. They seek to manage these shared landscapes scientifically rather than attempting to exclude elephants from them.

Within an EMR, agriculture, forests and elephant habitat are viewed as interconnected components of a single landscape.

Traditional seasonal farming practices become part of the conservation solution. During cultivation, communities are protected through well-maintained village and crop fencing. After harvest, elephants utilise regenerating vegetation that naturally develops on cultivated land, reducing pressure elsewhere while maintaining ecological productivity. Properly planned, both people and elephants benefit from the same landscape at different times of the year.

Equally important is community ownership.

Experience has shown that fences maintained by local communities around villages and agricultural lands are often significantly more effective than long stretches of remote forest fencing maintained solely by government agencies. Local stewardship creates accountability, rapid maintenance and stronger public ownership of conservation outcomes.

This is not simply a technical adjustment.

It represents a philosophical transformation from protecting elephants from people to enabling people and elephants to share landscapes responsibly.

A Presidential initiative for human-elephant coexistence

Transforming elephant conservation requires leadership that extends beyond any single ministry or government department.

It requires a genuinely national mission.

Sri Lanka should therefore establish a Presidential Initiative for Human-Elephant Coexistence and National Elephant Conservation.

Its significance would extend well beyond wildlife conservation.

Like the Mahaweli Development Program transformed water management and agriculture during the twentieth century, this initiative could reshape how Sri Lanka manages landscapes during the twenty-first.

Operating under the leadership of the Presidential Secretariat, the initiative should bring together the Ministries responsible for Environment, Wildlife, Forest Conservation, Agriculture, Irrigation, Tourism, Finance, Rural Development and Digital Technology within a common strategic framework.

Universities, research institutions, conservation organisations and the private sector would contribute scientific expertise and innovation. Provincial Councils and Local Authorities would implement landscape-level programs suited to regional conditions. Farming communities, whose experience is indispensable, would become genuine partners rather than passive beneficiaries.

Most importantly, elephant conservation would become recognised as a national development priority rather than an isolated environmental concern.

Healthy elephant landscapes also protect watersheds, strengthen food security, support tourism, enhance biodiversity, improve climate resilience and contribute to sustainable rural economies.

The objectives are therefore broader than conserving an endangered species.

They are about securing the ecological foundations upon which national prosperity depends.

A National Elephant Conservation and Management Master Plan (2027-2057)

Visionary initiatives require equally visionary planning. Sri Lanka should therefore prepare a National Elephant Conservation and Management Master Plan (2027-2057), a thirty-year strategy that extends beyond electoral cycles.

It should also establish measurable national targets, subject to independent scientific review every five years, ensuring that management remains adaptive, evidence-based and accountable.

It should identify priority elephant landscapes, strengthen ecological corridors and formally integrate Elephant Managed Ranges into national land-use planning.

Habitat restoration should reconnect fragmented ecosystems, while climate adaptation measures should improve the resilience of forests, reservoirs and wildlife corridors against increasing droughts, floods and climatic variability.

Modern technologies, including GPS telemetry, satellite monitoring, artificial intelligence, remote sensing and predictive analytics, should become standard management tools.

Compensation mechanisms require comprehensive reform so that affected communities receive rapid, transparent and equitable assistance. Tourism should be better integrated into local economies, enabling communities living alongside elephants to benefit directly from conservation success.

The Master Plan should also promote biodiversity finance, carbon markets, education, scientific research, legislative reform and continuous monitoring to ensure policies evolve alongside new knowledge.

Above all, it must recognise one fundamental truth.

Elephant conservation cannot be planned one year at a time.

It must be planned one generation at a time.

Beyond World Elephant Day

Every World Elephant Day reminds us that elephants remain endangered.

But for Sri Lanka, the occasion should carry a far deeper meaning.

It should become the annual milestone by which the nation measures its progress towards building a future where conservation, development and human wellbeing advance together.

The science already exists.

The policy foundations have largely been established.

The conservation expertise is internationally respected.

The technology is available.

The economic case is increasingly compelling.

What remains is visionary leadership capable of transforming individual projects into a coherent national vision that extends beyond governments, political cycles and generations.

That is why the time has come to establish a Presidential Initiative for Human-Elephant Coexistence and National Elephant Conservation, supported by a National Elephant Conservation and Management Master Plan (2027-2057). Together, they can provide the continuity, scientific rigour and whole-of-government coordination needed to secure one of Sri Lanka’s greatest natural inheritances.

When future generations look back on this period, they are unlikely to remember how many kilometres of fence were built or how many meetings were held. They will remember something far more important: whether we had the foresight to recognise that the future of the Sri Lankan elephant was inseparable from the future of Sri Lanka itself.

And when the first light of another century falls across Sri Lanka’s ancient reservoirs, the silent footsteps of elephants at dawn will tell future generations that this was the moment a nation chose wisdom over complacency, coexistence over conflict, and a living legacy over irreversible loss.

New promotion/relegation system commences

The Major Club 50-over that began on Monday and the Major Club T20 which begins today will be the first two tournaments that will come under the new promotion and relegation system where the participating teams will be ranked on points on their combined performances in the three formats (Major Club 50-over, Major Club T20 and Major Club 3-day league).

The SLC Transformation Committee has taken a decision to reduce the number of clubs participating in the Major tournaments to 10 (earlier it was 14). Currently, there are 14 clubs participating in the Major Clubs tournaments and 12 in Tier B.

Following the final rankings the bottom three clubs will be relegated to Tier B and the winner of Tier B promoted to the Major Clubs, thus making it 12 clubs. The same procedure will follow the following season as well with the bottom three teams from Major Club rankings demoted to Tier B and the Tier B champions promoted to Major Clubs thus making it 10 teams in the competition, which is the eventual number of clubs for the future.

The number of clubs participating in Tier B will remain the same at 12 with the bottom clubs being relegated to play in the Governor’s Trophy and the teams finishing at the bottom of the Governor’s Trophy to play in the inter-provincial.

The basis of promotion and relegation will depend on the total of weightage points after the three Major tournaments are completed.

Thus, it is imperative for all the participating clubs in both the Major Club and Tier B to ensure they put out their best eleven players for all the matches in the three formats to avoid being relegated when the rankings are finalized. – [ST]

Major Club T20 matches commencing today and the groupings:

At Colts: CCC v Nugegoda SWC 9.45 am; Panadura SC v Ace Capital CC 2 pm

Police Park: Bloomfield v Badureliya CC 9.45 am; Colts v SSC 2 pm

At Surrey grounds Maggona: BRC v Police SC 9.45 am; Tamil Union v Kurunegala YCC 2 pm

Group A: CCC, Moors SC, BRC, Tamil Union, Nugegoda SWC, Police SC, Kurunegala YCC

Group B: Panadura SC, NCC, Colts, Bloomfield, Ace Capital CC, Badureliya CC, SSC

Sri Lanka’s digital analytics community unites at People’s Tower for 199th global MeasureCamp

The digital analytics community in Sri Lanka convened at the People’s Tower for the third annual MeasureCamp Sri Lanka on 18 July 2026. Organised by the Digital Marketing Association of Sri Lanka (DMASL) in collaboration with the global MeasureCamp movement, this year’s event marked a landmark occasion, representing the 199th MeasureCamp hosted globally and attracting a record-breaking 435 registrations.

In keeping with the unique ‘unconference’ ethos, the event was entirely participant-led, with the agenda crafted on-site by attendees. This year’s session board featured a wide array of forward-thinking topics, including the practical application of AI in marketing, advanced SEO strategies, digital reality, psychological sales strategies, and data-driven decision-making. This diverse range of sessions fostered an environment where experts, students, and professionals collaborated to solve real-world industry challenges. The event’s success was made possible by DMASL’s continued commitment to ensuring MeasureCamp remains a cornerstone for Sri Lanka’s data, analytics, and measurement community.

MeasureCamp Sri Lanka Co-Chair and DMASL Steering Committee member Fioni Hewanadugala added: ‘MeasureCamp works because it values experience over hierarchy. The energy this year was palpable. By providing a space for professionals to connect authentically, we’re not just hosting an event; we’re helping shape the leaders of the future-ready digital economy that DMASL envisions for Sri Lanka. It’s an honour to witness such a vibrant exchange of ideas that elevates local talent to a global standard. The success of MeasureCamp Sri Lanka 2026 was made possible by a group of forward-thinking organisations who share our commitment to the digital industry. We extend our gratitude to our Venue Partner, People’s Bank, for providing the exceptional facilities at People’s Tower. Our sincere thanks also go to our Silver Partner, BrandRadar, and Corporate Partner, Hemas Consumer Brands. The day was fueled by the support of our refreshment partners: KFC Sri Lanka (Food), Anchor Hot Chocolate (Hot Beverage), Elephant House Beverages (Cold Beverage) and Munchee Sri Lanka (Snacks). We also appreciate Thyaga for serving as our official Gifting Partner and Impact Labs, our Creative Partner.’

DMASL President Arjun Jeger highlighted the broader industry impact: ‘Organising MeasureCamp through DMASL is central to our mission of uplifting Sri Lanka’s digital sector. Events like this empower professionals to connect and grow, helping us shape a stronger, more future-ready digital economy. The dedication shown by our organisers and volunteers is the engine behind this success.’

The seamless execution of the event was made possible by a dedicated team of organisers and volunteers who worked tirelessly behind the scenes to ensure a world-class experience for all attendees. As the global MeasureCamp movement continues to expand, the success of the 2026 Sri Lankan edition highlights the nation’s commitment to staying at the forefront of digital measurement and innovation.

Sri Lanka’s inflation target: Should it be cut from 5% to 2%?

In a recent article Dr. Harischandra argues that lowering the inflation target to 2% would be premature and identifies some issues with moving to a lower target. I have written an essay that argues for a 2% ceiling (available online https://samvaada.substack.com/p/issue-1-rethinking-inflation-policy ) which addresses many of the concerns raised by Dr. Harischandra but some specific aspects will be dealt with briefly below.

Dr. Harischandra’s concerns (see: https://www.ft.lk/opinion/Sri-Lanka-s-inflation-target-Should-it-be-cut-from-5-to-2/14-794598) on the impact of a lower target on growth and investment are related to those on employment and incomes. Those on exchange rate adjustment are connected to policy flexibility, those on debt dynamics to financial sector stability.

Dr. Harischandra provides graphical evidence that since 2015 inflation dynamics have been highly volatile and subject to large, abrupt shifts. This is undisputed and underlines the fact that inflation is very difficult to control, partly due to the long and variable lags between money growth and prices. There always is the risk of overshooting the target: the higher the target the greater the risk which is why a lower target is preferred to a higher one.

Generally rising prices are a phenomenon that occurs when the stock of money increases faster than the increase in supply of goods and services. Controlling increase in the monetary base lies in the hands of the Central Bank. It is worth recalling Friedman’s remark that ‘inflation is always and everywhere a monetary phenomenon’.

Impact on growth and investment

Dr. Harischandra states that achieving a 2% inflation target would require maintaining higher interest rates over a prolonged period in order to tighten financial conditions. This would in turn discourage capital formation. This is not necessarily true.

Once the rate of inflation has risen, bringing it down will indeed require tighter monetary conditions to withdraw excess liquidity from the market. This would involve high interest rates, particularly when credit growth has accelerated rapidly. However once the excess money supply has been withdrawn rates will stabilise. Once achieved, maintaining monetary stability does not necessarily require high rates.

For interest rates to remain stable, it is critical that they be allowed to reflect the real underlying conditions for the supply and demand for loanable funds. Attempts to lower the interest rate by injecting liquidity to the banking sector will distort investment and savings decisions. As these are necessarily long-term decisions and as investments involve specific productive assets in particular sectors the consequences of errors are not easily undone.

The interest rate is one of the most critical prices in an economy because it coordinates intertemporal preferences. Once inflation falls and monetary conditions stabilise the inflation premium that arises from uncertainty about the value of money will decline leading to permanently low rates.

This is best illustrated by historical data. Under the currency board Ceylon had very low and stable inflation and correspondingly low interest rates. These were also present in the early years of the Central Bank and are visible in the tables shown.

For example between 1953 – 1963 inflation rates were mostly below 2%. Interbank call rates were 05%-1.5%, FD rates were between 0.5% -2.5% and lending rates were between 3-8%. These later increased as inflation rose.

Countries which have achieved monetary stability such as Singapore have very low interest rates, similar to the experience of Ceylon in the 1950’s. Maintaining monetary stability is the key to sustainable low inflation and leads to low interest rates.

Impact on employment and incomes

Dr. Harischandra’s argument on the impact on employment follows from his argument on growth and investment. In a sustainable low inflation environment that arises from monetary stability both rates of inflation and interest will be low so concerns on employment and income stemming from high interest rates will not arise.

He correctly identifies that a durable recovery depends on reviving investment, rebuilding dynamism and strengthening credit flows. This cannot be achieved in a sustained manner through infusions of money. In the short-term money creation will quicken economy activity which creates a temporary illusion of prosperity but this is not sustainable.

Sustained growth is can only arise from increases in productivity. Productivity growth is low in Sri Lanka due to various constraints: policy inconsistency and monetary instability which deters investment as well high levels of regulation (including restrictions on investment) and taxation (including a highly protectionist tariff structure). To achieve sustainable real growth, these root causes must be addressed. It is not possible to resolve these problems through monetary policy and attempting to do so takes attention away from the underlying causes of unemployment and slow growth.

It is also not advisable to resort the temporary quickening of economic activity which is possible through monetary policy simply to buy time necessary to address more fundamental causes. This is because the distortions inflation creates are persistent, long term and can lead to further problems particularly Balance of Payments crises. In the standard neoclassical framework, the costs of inflation are assumed to be minimal on the basis of the assumption that money is neutral. However my essay ( https://samvaada.substack.com/p/issue-1-rethinking-inflation-policy) argues that the conditions necessary for neutrality do not hold in practice which leads to various adverse outcomes.

Impact on public debt dynamics

Higher interest rates will indeed place greater strain on borrowers but as discussed above, achieving monetary stability results in sustained lower interest rates, not higher except during the period of transition. Higher interest rates tend to reflect an inflation premium due to the uncertainty that arises when trying to take decisions over longer periods. If the CBSL is guided by fixed rules that result in low inflation it will build credibility and provide the confidence necessary to eliminate the inflation premium attached to interest rates.

In the short term it is indeed possible to ‘inflate away’ part of the rupee public debt but the dynamics reverse the moment a Balance of Payments crisis occurs. (The essay at https://samvaada.substack.com/p/issue-1-rethinking-inflation-policy explains in detail how this results from an inflationary policy).

The stabilisation measures that follow from the Balance of Payments crisis slow the economy. Public sector wages and costs catch up and there is pressure to increase welfare payments to offset inflation. The slowing economy lowers tax collection while expenses increase and the budget deficit increases. This is particularly important because of the foreign debt forms about 40% of the debt stock.

The recent depreciation of the currency has resulted in the the overall value of the public debt increasing in rupee terms, despite the debt repayments and the primary surplus in the Government Budget. This is because the value of the foreign debt increased following the currency depreciation. Foreign debt is serviced with taxes collected in rupees so the burden on the citizens increases.

Policy flexibility

A low target does indeed reduce policy flexibility, which is its objective. Credibility arises from a rules based environment. The Central Bank must be bound by clear rules that are evident to all. If the Central Bank follows clear rules, consistently its actions become predictable. This builds credibility and leads to increased confidence.

Flexibility means greater discretion and necessitates looser rules which reduces predictability and certainty. Conceptually, flexibility and credibility are two opposites that cannot be reconciled.

Practically, requiring the Central Bank to monitor and adjust to various shocks across a multitude of international prices that may be moving in different directions is an all but impossible task. Any adjustment in response to changes in international conditions must ultimately take place in the real economy. This is best left in the hands of the firms and individuals-the actual decision makers in the economy. Neither the Government nor the Central Bank is omniscient and omnipresent.

The role that governments can play in response to international shocks is to minimise regulatory and other barriers that impede adjustment. The role that the Central Bank can play is to ensure minimum distortions to the price signals, international and local, on which the real adjustments must be based.

Impact on exchange rate and external adjustment

Tight monetary policy will indeed help maintain a stable exchange rate, which I view as desirable. A stable exchange rate gives greater predictability; it removes one variable that adds uncertainty. This will facilitate international trade and investment.

If the exchange rate is to act as a shock absorber, it would need to minimise the transmission of any external shocks or in other words insulate the economy to some extent from the outside world. In theory, if the prices of key exports fall, the depreciation of currency may help offset this. This sounds appealing, who would not wish the country to be sheltered from foreign-induced turmoil?

However, in a complex world can this work in practice?

For example, in the first quarter of 2026 tea prices declined. All exporters and tourism were affected after the outbreak of the war. The rupee has depreciated this year and it may be argued that this helped cushion the shock for exporters. However, exporters depend on at least some imported inputs so depreciation increases their costs as well as their revenues. Nevertheless, exporters should enjoy some incremental benefit from the depreciation, but only for a while, before local prices catch up.

At the same time oil prices increased. In this case the currency depreciation has had the opposite effect: it has not cushioned but amplified the shock. This impacts the entire economy including the export sector. For exporters the cushion of better rupee prices may have helped offset the magnified shock of higher rupee energy costs but for purely domestic producers and consumers, it has only amplified the shock.

Fundamentally, s depreciation intended to boost exports does not change the underlying competitive advantage of an industry in the long run. It temporarily shifts relative prices but does not alter real productivity or resource endowments.

There are many different international goods and their prices and they may not necessarily move in the same direction. Changes in international prices reflect changes in underlying conditions that local businesses and consumers must adapt to. Attempting to insulate domestic producers may at best only delay the necessary adjustment. The depreciation may also create additional problems for the domestic economy because of higher input costs for food, medicines and raw materials.

A stable exchange rate cannot eliminate external shocks, but it prevents monetary instability from making them worse.

Conditions necessary for the neutrality of money in the long term do not hold in practice. The costs that arise if the neutrality assumption is lifted are heavy: the redistribution of wealth and distortions to the production structure and investment. Most seriously it leads to Balance of Payments crises which derail growth. If all the associated costs are considered the advantage of an immediate lowering of the inflation target becomes apparent

Financial sector stability

Under a system of fractional reserve banking the financial sector is inherently vulnerable. Widespread panic can lead to bank runs therefore maintaining confidence is paramount. The Central Bank’s has an important role as the lender of last resort. However in playing this role and ensuring the proper functioning of the interbank market it is necessary to guard against problems of moral hazard.

The potential for moral hazard arises if the provision of liquidity support reduces the incentive for financial institutions to devote resources to enhancing the efficiency and effectiveness of their daily liquidity management operations. Moreover, excessive reliance on the Central Bank for daily liquidity management would substantially undermine private interbank market activity.

Bonuses, increments, incentives and promotions of senior bank staff are tried to profits. Recourse to cheap funds from the CBSL on a regular basis can encourage risky lending based not on deposit mobilisation from the market but in continuous use of short-term borrowing from the CBSL. If liquidity is freely and cheaply available from the CBSL, the top management of banks may be incentivised to pursue short-term profit maximisation through expanding the loan book that can threaten financial system stability.

Moreover if interest rates are held below natural rates in order to boost growth, projects that would normally be rejected may be undertaken. These projects rely on the artificially low rates in order to be viable. This increases the risk to financial system stability, at one point when market forces reassert themselves and interest rates rise it could lead to widespread failures that could threaten banking stability.

All financial crises involve excessive levels of debt accumulation. This is more likely to occur if interest rates are held artificially low.

Lessons from international experience

Dr. Harischandra suggests that moving to a lower inflation target should be done only gradually and over time. My essay argues that the higher inflation target will lead to Balance of Payments crises. In general, a gradual approach to change may be preferable but if a policy is likely to lead to a crisis then this must be weighed against the costs that arise from a crisis.

In the neoclassical framework under the neutrality assumption the costs of inflation are transitional and are outweighed by the advantages. My essay argues to the contrary, that the conditions necessary for the neutrality of money in the long term do not hold in practice.

The costs that arise if the neutrality assumption is lifted are heavy: the redistribution of wealth and distortions to the production structure and investment. Most seriously it leads to Balance of Payments crises which derail growth. If all the associated costs are considered the advantage of an immediate lowering of the inflation target becomes apparent.

Signwave Ad Solutions starts operations

Signwave Ad Solutions Ltd., commenced operations on 7 July 2026, exactly 23 years after Signwave Advertising was founded on the same date in 2003 by the late Rukmal Fernando.

Over more than two decades, Signwave Advertising earned the trust of clients across Sri Lanka’s outdoor advertising industry through its commitment to quality, professionalism and reliable service.

With the passing of its founder, Signwave Ad Solutions Ltd., has been established to continue the business building on the strong foundation and values that have shaped Signwave Advertising since its inception.

The company is led by Managing Director Theja Kalubowila, who brings over 25 years of experience in advertising and brand communications, together with Director Manushka Fernando. They are supported by long-standing members of the Signwave team, including Operations Manager Dhammika Priyadarshana.

Together, the team is committed to carrying the business forward with the same dedication to quality and trusted client service, while embracing new opportunities and strategies in Sri Lanka’s outdoor advertising industry, Signwave Ad Solutions added.

Cabinet approves 2.28 m ton-coal procurement for Norochcholai

The Cabinet of Ministers has approved the procurement of 2.28 million metric tonnes of coal for the Norochcholai Lakvijaya Power Plant, aimed at ensuring an uninterrupted fuel supply during the 2026/2027 period and strengthening the country’s energy security.

The approval was granted at the Cabinet meeting held on 30 March 2026, following an international competitive bidding process conducted to secure the coal requirements of the country’s largest coal-fired power plant.

‘The National Procurement Commission authorised the selection of two suppliers after the procurement process attracted nine bids. Based on the recommendations of the High-Level Standing Procurement Committee, the Cabinet approved to award the contracts to the two successful bidders,’ Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing yesterday.

Accordingly, he said Aditya Birla Global Trading Singapore Ltd., will supply 70%, equivalent to 1.596 million tons of coal and Mohit Minerals Ltd., of India will supply the remaining 30%, equivalent to 684,000 tons.

The procurement is intended to maintain adequate coal stocks for the continued operation of the Norochcholai Lakvijaya Power Plant, helping to minimise the risk of interruptions to electricity generation.

The proposal to this effect was submitted by Energy Minister Anura Karunathilake.

Why meaning matters more than money

Modern organisations have become remarkably successful at improving working conditions. Offices are more comfortable, technology has reduced physical effort, salaries have improved, and companies invest heavily in employee benefits. Yet many organisations continue to struggle with disengagement, burnout, quiet quitting, and a loss of employee commitment. This raises a key question: if material conditions are better, why does work still feel so empty to so many people?

This presents a paradox. Why do people who appear to have more than previous generations frequently seem less fulfilled at work?

The answer may lie in a place few corporate leaders expect to look: philosophy, and more specifically, the question of meaning.

Two thinkers, writing in very different circumstances, offer practical insights into a central management challenge: how to keep people engaged when work feels repetitive, difficult or uncertain. One was Viktor Frankl, the Austrian psychiatrist and Holocaust survivor who developed Logotherapy. The other was the French philosopher Albert Camus, whose famous essay ‘The Myth of Sisyphus’ has influenced generations of readers.

Although they approached life from different philosophical positions, both asked the same essential question: how do human beings continue to work, persevere and even flourish when life appears difficult, repetitive or uncertain?

The search for meaning

Frankl’s answer was simple but deep. He believed that the deepest human motivation is not the pursuit of pleasure or wealth, but the search for meaning, and that work becomes more sustaining when it connects to that search.

His experiences in Nazi concentration camps convinced him that people could endure extraordinary hardship if they believed their suffering served a purpose. More importantly, he argued that although we cannot always choose our circumstances, we remain free to choose our response to them.

That insight has enormous relevance to the modern workplace, where employees are often asking whether their work matters.

Employees constantly ask themselves questions they seldom express openly.

‘Does my work matter?’

‘Am I contributing anything worthwhile?’

‘Is this simply another way of earning a salary?’

If these questions remain unanswered, even generous remuneration may fail to create lasting commitment.

Many organisations respond to disengagement by increasing salaries, introducing incentive schemes or organising employee entertainment programs. These initiatives certainly have value, but they rarely satisfy the deeper need to believe that one’s work contributes to something worthwhile.

The corporate Sisyphus

Centuries before Frankl, the ancient Greeks told the story of Sisyphus, condemned by the gods to push a huge rock up a mountain, only to watch it roll back down again. His punishment was to repeat the task for eternity.

For many people, modern work can feel surprisingly similar.

Sales targets are met, only for higher ones to be imposed. Production schedules are completed, only for the next order to arrive. Reports are written, meetings concluded, and customer complaints resolved, yet tomorrow the cycle begins again.

The corporate rock never stops rolling.

Albert Camus used this myth to explore what he called ‘the Absurd’-the tension among humanity’s search for meaning and the often repetitive, uncertain nature of life.

His famous conclusion has puzzled readers for decades.

‘One must imagine Sisyphus happy.’

Camus was not suggesting that Sisyphus enjoyed pushing the rock. Rather, he argued that once Sisyphus accepted his circumstances and refused to surrender to despair, the struggle itself became an act of courage and dignity.

Frankl and Camus did not arrive at the same philosophical conclusion. Frankl believed that meaning can be discovered, even in suffering. Camus believed that human dignity lies in refusing to be defeated, even when life appears meaningless. Yet both rejected hopelessness, and that shared refusal leads to a practical lesson for managers.

For managers, this distinction matters less than the practical lesson they share: resilience grows not simply from comfort or financial reward, but from purpose, responsibility and the determination to persevere at work.

Lessons from Japan

Interestingly, many Japanese management practices have embodied these principles for decades without ever referring to Frankl or Camus. This makes the connection from philosophy to practice especially clear.

Quality Circles, Kaizen and employee suggestion schemes recognise a simple truth: people become more committed when they are trusted to think, solve problems and improve their own work.

A worker tightening bolts on a production line is not simply performing a repetitive task. He is adding to product quality and buyer safety. A machine operator is not simply producing export goods but helping to build the reputation of the company and, ultimately, the country.

When employees understand how their work contributes to something larger than themselves, even routine tasks acquire significance.

Perhaps this explains why organisations that sincerely embraced employee involvement based Japanese management, often developed extraordinary levels of employee commitment. Employees were not merely instructed on what to do; they were invited to help improve how the work was done, which made the work feel more meaningful.

Unfortunately, some organisations later downgraded these practices to slogans, competitions and formalities, losing the deeper sense of participation that had made them so powerful in the first place.

Meaning in practice

Looking back over my own management career, I now realise that some of the most satisfying moments had little to do with budgets, profits or organisational restructuring. They came from helping people discover that their work mattered, and this was often where the insights became most tangible.

At the time, I had never heard of Viktor Frankl or read Albert Camus. Yet, in retrospect, I can see that many of the decisions I made were really attempts to help employees find purpose in what they were doing.

One experience occurred when I was the General Manager of a small Government organisation. Among the staff was a trainee stenographer who had earned a poor reputation. Her typing was untidy, her spelling weak, and her grammar inconsistent. Consequently, colleagues rarely entrusted her with important work. She spent most of her time typing routine correspondence that seemed to have little significance.

One afternoon, the Ministry urgently requested a draft Cabinet Paper. My secretary was on leave, and the remaining stenographers had already left the office early. I had little choice but to ask this young lady to prepare the document.

Perhaps because of the urgency, I told her rather sternly, ‘This is a Cabinet Paper. Please make sure everything is correct in one go.’

When she returned with the completed document, I was astonished. It was excellent.

Later, I learnt that she had proudly gone home and told her parents that she had typed a Cabinet Paper. For the first time, she realised that her work contributed to an important national decision.

Her confidence blossomed. Her performance improved noticeably.

Nothing had changed about her technical ability overnight.

What had changed was her perception of the importance of her work.

A second experience occurred at Dankotuwa Porcelain.

One young employee spent her day dipping biscuit-fired porcelain plates into glaze before placing them on a conveyor. It was one of the most repetitive jobs in the factory. Yet she had passed her Advanced Level examination in the science stream and possessed abilities that her daily routine never called upon.

When we introduced Quality Circles, everything changed.

Working with her colleagues in a Quality Circle, she helped investigate the causes of glazing defects. Using her scientific knowledge, the team experimented with different glaze viscosities until they identified an optimum level that significantly reduced defects.

The change in her zeal was remarkable. She was no longer simply dipping plates into glaze. She had turned into a problem-solver. She was contributing directly to product quality, customer satisfaction, and the company’s success.

That experience revealed to me something I have never forgotten.

Quality Circles do far more than solve technical problems. They help people discover that their ideas matter.

Three lessons for today’s leaders

These experiences, together with the insights of Frankl, Camus and Japanese management, suggest three lessons for today’s corporate leaders about meaning at work.

First, people need purpose as much as they need pay.

Fair remuneration is essential, but it is rarely enough to sustain commitment over the long term. Employees want to know that their work contributes to something worthwhile. Leaders who repeatedly explain how each person’s work benefits customers, colleagues and society build stronger organisations than those who rely solely on financial incentives.

Second, involvement creates meaning.

People become committed when they are trusted to think, solve problems, and improve how work is done. Participative management is therefore much more than a productivity technique. It is a way of affirming that employees are valued for their judgement as well as their labour.

Third, leaders create meaning by recognising potential.

One of the most important responsibilities of leadership is to help people see possibilities in themselves that they may not yet recognise. Sometimes a basic expression of trust, a new responsibility or the opportunity to solve a problem is able to transform an employee’s attitude more effectively than another salary increment.

A final reflection

Modern corporate life will probably never become free of pressure. Markets will remain competitive. Targets will continue to rise. Technology will keep changing. Every organisation, in one way or another, will continue pushing its own version of Sisyphus’ rock uphill, which makes the final question unavoidable.

The real question is whether employees see that rock merely as a burden or as part of something worthwhile, and whether leaders help them see the difference.

Frankl reminds us that people can endure remarkable hardship when they find meaning in what they do. Camus reminds us that dignity lies in refusing to surrender to difficult circumstances. Japanese management demonstrates that participation, trust and continuous improvement can make ordinary jobs into meaningful work. Perhaps that is the greatest challenge facing today’s leaders.

Our task is not simply to improve productivity or increase profits. It is to build organisations where people understand why their work matters. When employees discover meaning, commitment no longer depends solely on supervision, incentives or motivational speeches. It comes from within.

And when that happens, organisations gain something that no bonus scheme can ever buy-a workforce that believes in what it is doing. While I reflect on my own career, I realise that the most enduring management lesson was never about systems, structures or strategies.

It was about helping people see that they mattered. This is the formula I used in restructuring the Merchant Bank of Sri Lanka (MBSL). Perhaps that is where truly meaningful leadership begins.

Independence of judiciary and retirement age

The age of retirement of judges of the Supreme Court and the Court of Appeals is specified in Article 107(5) in the section of the 1978 Constitution entitled ‘Independence of the Judiciary.’ Article 108 states that the salary payable to such judges cannot be reduced after appointment. Is there an analogy that can be drawn? It seems reasonable to conclude that the retirement age cannot be reduced. In both cases, something is being taken away from the judges. But what is at issue at present is whether something can be given to the judges.

I have some familiarity with the challenges of creating the conditions for the independence of persons entrusted with the making of decisions that are of greatest import; Where it is important not only that justice is done, but also that justice is seen to be done. My experience comes from involvement in the drafting of legislation on regulation in the Global South drawing from the long experience with independent regulation in the United States and from teaching the subject.

Sticks and carrots

The 1978 Constitution and good practices in regulatory design are unequivocal in constraining the ability of the executive or the legislature to take away anything from those whose independence is sought to be safeguarded. No use of sticks. But what of carrots? Inducements, incentives, rewards?

The authors of the 1978 Constitution did not explicitly prohibit the raising of salaries or the retirement age. In the legislation I am familiar with, we tend to block these too, by limiting discretion on renewal of appointments. Salaries tend to be pegged to external objective factors and are not left to the discretion of the legislature or the executive.

Is the increase of the retirement age a benefit, similar to a salary increase? In a country where average life expectancy is 80 for women and 76 for men, it is. Work is not just about money. It gives meaning to one’s life and generates social recognition and respect. Especially in the case of appointments that come with relatively strict conditions on post-retirement activities, retirement is likely to be viewed with trepidation.

Does this mean that the ages of retirement specified in Article 107 are immutable?

The solution

Add a clause to the proposed 22nd Amendment stating that the changes will not apply to the current members of the Supreme Court and the Court of Appeal but will apply only to appointments made after its enactment.

For a currently serving judge or someone from the Attorney General’s Department, or from the unofficial bar who is appointed to the Supreme Court of the Court of Appeal after the enactment of the 22nd Amendment, the retirement age would be higher than those of the judges appointed to that Court prior to the change. Over time, all the judges in the Supreme Court and the Court of Appeals would enjoy the higher retirement age. The carrot would not be offered to those currently appointed. The retirement age of currently serving judges will not be changed.

This gets around a critical problem. Damaging allegations of conflict of interest on the part of sitting judges of the Supreme Court who are asked to rule on whether or not the 22nd Amendment should be approved by a referendum will be avoided. They cannot all recuse themselves because of conflict of interest. Someone has to rule on that question.

Compromise on the retirement age on the part of the Government will lower the temperature and create the conditions for the necessary national conversation on extending the retirement ages of all in the labour force, free of partisan posturing.

Compromise on the retirement age on the part of the Government will lower the temperature and create the conditions for the necessary national conversation on extending the retirement ages of all in the labour force, free of partisan posturing

Ideally, the Government will take the opportunity afforded by the need to further amend the proposed 22nd Amendment to include provisions on what kinds of post-retirement appointments may be offered to retired judges. The practice of offering ambassadorial appointments to some (but not all) retired judges is quite problematic. Specifying the permitted appointments to those open to all retired judges such as membership in arbitration panels, governing bodies of universities, and commissions of inquiry would avoid the perception that some judges are being selectively rewarded by the executive and thereby influencing decisions prior to retirement.

BYD grows presence in East: New Batticaloa showroom marks brand’s latest milestone in Sri Lanka

BYD, together with its authorised distributor in Sri Lanka, John Keells CG Auto, announced the further expansion of its East Coast presence with the opening of their ninth showroom opening in Batticaloa.

Located at 556 D Trinco Road, Batticaloa, the new BYD showroom operated in partnership with Harry Traders, joins a growing retail and service network that includes Colombo, Galle, Kurunegala, Kandy, Ampara, and Rathnapura. The latest launch further deepens BYD’s presence in the Eastern Province, bringing its advanced electric and plug-in hybrid vehicles even closer to customers across the region, and strengthening the brand’s islandwide accessibility.

Customers in Batticaloa can expect the same level of reliable service, support, and access to vehicles that BYD is known for across its existing network. Operated in partnership with Harry Traders, the new location will initially open as a showroom, with plans underway to introduce service and spare parts facilities in the near future. The showroom will feature a range of BYD vehicles including the BYD SEALION 5, BYD SEALION 6, BYD SEALION 8, BYD ATTO 1, BYD ATTO 2 and BYD DOLPHIN.

‘Every new showroom we open is a statement of intent, that we are serious about making new energy mobility accessible to every Sri Lankan, in every corner of this island,’ JKCG Auto Chief Executive Officer Charith Panditharatne said. ‘Batticaloa is a city with a growing, aspirational community, and we are proud to bring BYD’s world-class lineup directly to its doorstep through our partnership with Harry Traders.’

Harry Traders Chief Executive Officer, Thavabalan Harry Prathab also added: ‘We are honoured to represent BYD in Batticaloa and to be part of a movement that is genuinely changing how Sri Lankans think about driving. The Eastern Province has an enormous appetite for quality and innovation, and BYD delivers both. We look forward to introducing our community to a new standard of vehicle ownership.’

In line with its commitment to building a strong NEV ecosystem, with the GreenEV partnership, Keells has deployed 46 fast chargers island-wide and recently announced a strategic partnership with Green EV, unlocking access to a further 83 chargers from GreenEV enabling to a total of 129 public charger network spanning all nine provinces of Sri Lanka. Every BYD and Denza customer also receives a home charger as standard, ensuring that the charging experience is seamless from day one. This growing infrastructure, which already reaches the Eastern Province, supports BYD’s long-term sustainability goals and ensures greater convenience for NEV owners wherever they are in the country.

With its newest location in Batticaloa, BYD continues to expand access to NEVs while offering customers greater service coverage across Sri Lanka. With showrooms and service centres now spanning the Western, Southern, Central, North Western, and Eastern provinces, BYD and JKCG Auto remain committed to ensuring that the transition to new energy mobility is not just possible, but convenient, for every Sri Lankan.