Category: Daily Financial Times

The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) successfully organised the Sri Lankan National Pavilion at Grne Woche, the world’s largest B2C trade fair for food, beverages, and agriculture, currently taking place in Berlin, Germany.

Grne Woche attracts over 400,000 international visitors annually and serves as a premier global platform connecting producers, traders, and consumers. This year’s exhibition holds special significance as Grne Woche celebrates its 100th anniversary, making Sri Lanka’s participation in this milestone event particularly meaningful.

At the Sri Lankan National Pavilion, a diverse range of high-quality products were showcased, including Ceylon Tea, Ceylon Cinnamon, coconut-based products, handicrafts, gems and jewellery. These products received a warm and positive response from buyers and visitors from across the world, highlighting Sri Lanka’s strong potential in international markets.

As the main organiser of the Sri Lankan National Pavilion, AHK Sri Lanka is convinced that Grne Woche provides an excellent platform for Sri Lankan small and medium-sized enterprises (SMEs). The exhibition enables exporters to explore opportunities to enter the EU and German markets, connect with potential buyers and partners, and gain valuable insights into consumer preferences in international markets.

Cinnamon Miracle Chairman Gihan De Silva, stated ‘Being part of the Sri Lankan National Pavilion allowed us to showcase the authenticity of Ceylon Cinnamon. The interest from German and EU buyers was positive, and this platform has helped us better understand market requirements.’

‘This was a great opportunity for SMEs like us to test our products in the EU market. Direct interaction with consumers helped us gain insights that are difficult to achieve through other channel, ‘

added Wild Rabbit CEO Indika Siriwardana.

‘Trade fairs such as Grne Woche are powerful platforms for Sri Lankan exporters and SMEs. With the right strategy and consistent participation, we can increase the visibility of our products, strengthen buyer confidence, and unlock bigger opportunities across the EU and German markets.’ AHK Sri Lanka Head of Corporate Affairs and Export Promotion Malintha Gajanayake mentioned.

The pavilion was honoured by the visit of Ambassador of Sri Lanka to Germany, Varuni Muthukumarana, along with officials from the Sri Lankan Embassy in Berlin, who extended their support and encouragement to the participating Sri Lankan exporters.

As the official representative of bilateral economic relations between Sri Lanka and Germany, AHK Sri Lanka remains firmly committed to supporting Sri Lankan SMEs in accessing the EU and German markets, fostering trade partnerships, and promoting Sri Lanka’s products on global platforms.

Hutch is reshaping Sri Lanka’s digital landscape with the launch of ‘Hutch 15’, a breakthrough smartphone plan offering non-stop access to 15 most essential apps in one subscription.

The thoughtfully curated plan covers popular applications that adapt to people’s interests, but importantly includes a host of apps to upskill, equip and improve efficiency of Sri Lankan citizens, contributing to personal enrichment and national productivity.

The plan covers a well-rounded portfolio of apps ranging from communication, professional upliftment, AI and collaboration platforms, and has kept all main social network platforms and streaming apps inclusive.

Hutch 15 powers exciting inclusions of unlimited access to ChatGPT, Gemini, Discord and LinkedIn going far beyond traditional entertainment centric plans. It is purpose-built to accelerate AI adoption, digital learning, professional development, and entrepreneurship, empowering Sri Lankans to succeed in an expanding digital-first world.

Other apps include communication, knowledge, media and e-commerce enabler platforms such as WhatsApp, YouTube, Instagram, TikTok, Facebook, X, Telegram, Messenger, Snapchat, Viber and Imo which are accessible non-stop throughout the subscription period. The plan also features additional 35GB of Data for everything else, Unlimited calling to Any network, and a Freeloaded credit of Rs. 100 that could be used to trial a range of Digital Value-added services the company hosts.

The Hutch 15 plan brings together a comprehensive digital ecosystem to any smartphone user. Priced at an all-inclusive subscription of just Rs. 1,199 per month, it is a simple enough and affordable enough plan for anyone, which is backed by a resilient and robust network that spans across the country.

Hutch Chief Marketing Officer Hamdhy Hassen said, ‘Hutch 15 is a result of our belief, that to empower citizens, we need to design products that induce trial and nurture repeat use. To transform lives, our products and user journeys must be designed to remove psychological barriers and promote digital exploration without costing a premium. More than just a plan, Hutch 15 is a gateway to growth, self-expression, and opportunity for everyone.’

The plan can be conveniently subscribed via the company website www.hutch.lk on e-SIM devices instantly or on standard SIM for new users, whilst Hutch users can subscribe via the Hutch App or recharging the price.

Sri Lanka’s globally renowned gem and jewellery industry has received a timely boost with the introduction of a revised tax calculation method for gem imports. The new framework for applying the Social Security Contribution Levy (SSCL) and Value Added Tax (VAT) is expected to ease the financial burden on importers, revive declining import volumes, and strengthen the country’s gem export performance.

The announcement was made by National Gem and Jewellery Authority (NGJA) Chairman and Chief Executive Officer, Dr. S.B. Chaminda, at a recent media briefing in Colombo. He explained that the earlier tax regime introduced from 1 January 2024, had unintentionally slowed down gem imports and negatively impacted the broader industry.

Impact of the previous tax structure

From January 2024, gem imports were subjected to 18% VAT and 2.5% SSCL, calculated on the declared value of the imported gem parcels.

While the objective was to widen the tax base and enhance revenue, the outcome proved challenging for the gem trade. According to Dr. Chaminda, gem imports declined sharply during 2024 and 2025 compared to 2023, as the higher tax burden discouraged traders from importing raw stones. This decline was not confined to import volumes alone. Instead, it triggered a cascading effect across the entire gem and jewellery value chain, with serious economic, employment, and export consequences for Sri Lanka.

Cascading impact on gem industry

n Reduced availability of raw gems for cutting and polishing

Sri Lanka’s gem industry depends heavily on the continuous inflow of raw stones-both locally mined and imported-for cutting, polishing, heat treatment, and jewellery manufacturing. When import volumes fell due to the high tax burden, lapidary centres and processing units faced shortages of raw material. This resulted in underutilisation of cutting and polishing facilities, idle machinery and workshops, reduced productivity among skilled gem cutters, and delays in fulfilling international orders. Since value addition is a core strength of Sri Lanka’s gem industry, any disruption in raw material supply directly weakens the country’s competitive advantage in global markets.

nLower re-export volumes

Sri Lanka functions not only as a gem producer but also as a regional processing and trading hub. Many imported stones are cut, polished, certified, and re-exported to markets such as the United States, Europe, the Middle East, and East Asia. With fewer raw gems entering the country, re-export volumes declined, international buyers shifted to alternative markets, long-term supply relationships were disrupted, and Sri Lanka’s presence in global gem supply chains weakened. The reduction in re-exports meant fewer high-value shipments leaving the country, directly affecting national export performance.

nLoss of foreign exchange earnings

Gem and jewellery exports are a key source of foreign currency inflows for Sri Lanka. When re-export volumes declined, so did foreign exchange earnings. This resulted in reduced export revenue, a lower contribution to the balance of payments, reduced availability of foreign currency for essential imports, and increased pressure on the exchange rate. At a time when Sri Lanka has been striving to strengthen its external sector, the slowdown in gem exports added further strain to the economy.

n Reduced employment in value-added activities

The gem industry supports thousands of livelihoods across gem cutting and polishing, jewellery manufacturing, certification and grading, trading and logistics, and retail and export operations. With fewer gems being imported and processed, many small and medium enterprises experienced declining order volumes, leading to reduced working hours, temporary layoffs, income losses for skilled workers, and slower recruitment of young trainees. As gem processing is a labour-intensive industry, any contraction has a direct and immediate impact on employment, particularly in rural and semi-urban regions.

Strategic risk to a traditional export industry

Sri Lanka has built a strong international reputation over centuries as a source of high-quality sapphires, rubies, and rare gemstones. This reputation is supported not only by natural resources, but also by skilled craftsmanship, reliable export standards, ethical sourcing, and strong global buyer confidence. When the industry slowed due to policy-related cost pressures, it posed a strategic risk. Market share could shift to competing countries, buyer confidence could weaken, Sri Lanka’s brand value in the gem trade could erode, and long-term industry sustainability could be threatened. In global markets, consistency and reliability are crucial, and even short-term disruptions can result in permanent loss of market presence.

The revised tax calculation method

Recognising the need for a more practical and industry-friendly approach, the authorities have introduced a simplified and concessionary tax system. Instead of taxing gem imports based on their declared market value, the new method assigns standardised reference values to imported gem parcels based on the type of stones.

In Sri Lankan Rupees, the tax payable is approximately Rs. 57,195 per kilogram for precious stones and Rs. 3,200 per kilogram for semi-precious stones. This represents a significant reduction compared to the earlier system, where taxes were calculated on the full declared commercial value of gem parcels.

Key advantages of the new system

The revised tax framework significantly eases the financial pressure on importers by introducing predictable and manageable tax costs. This improves cash flow stability and enables better business planning, particularly for small and medium-scale operators. Lower tax exposure reduces the incentive for under-invoicing and informal trading practices, thereby promoting greater compliance, transparency, and regulatory discipline across the sector. With taxes no longer acting as a major deterrent, gem imports are expected to recover steadily, ensuring a consistent supply of raw materials for downstream value-added activities. Improved availability of raw gems will strengthen cutting, polishing, and jewellery manufacturing operations, enhancing Sri Lanka’s export competitiveness. Importantly, the reduced tax burden lowers entry barriers for new businesses and creates opportunities for young entrepreneurs to enter gem importing, lapidary work, jewellery manufacturing, and re-export operations.

Strategic importance for Sri Lanka’s economy

The gem and jewellery sector plays a vital role in export earnings, employment generation, rural economic development, and tourism-linked retail trade. Sri Lanka is internationally recognised for its blue sapphires, cat’s eye chrysoberyl, and a wide range of precious and semi-precious stones. Maintaining competitiveness therefore requires not only product quality, but also a supportive and realistic policy environment.

Should Income Tax exemptions on gem exports be reconsidered?

Historically, income earned from gem exports in Sri Lanka was exempt from Income Tax, a policy that helped position the country as a competitive global gem trading hub. The removal of this exemption, though intended to broaden the tax base, has reduced Sri Lanka’s relative attractiveness compared to competing gem-exporting centres such as Thailand, Hong Kong, Dubai, and certain African markets. Given Sri Lanka’s urgent need for foreign exchange and economic recovery, policymakers may need to reconsider targeted tax incentives for strategic export industries such as gems and jewellery.

The international gem trade is highly mobile, with traders and processors able to relocate quickly to jurisdictions offering lower tax burdens, faster regulatory approvals, and export-friendly policies. Reintroducing Income Tax exemptions could attract international gem traders to Sri Lanka, encourage regional trading hubs to relocate operations, and increase re-export and processing activity.

Gem exports generate high-value foreign currency earnings with relatively low import dependency. Even modest export growth can significantly strengthen the balance of payments, stabilise the exchange rate, and support essential imports. In this context, tax exemptions should be viewed not as revenue losses, but as strategic investments that multiply foreign currency inflows and long-term fiscal sustainability.

Policy balance and way forward

The experience of 2024-2025 demonstrates that excessive tax pressure can be counterproductive. Lower import volumes reduce VAT collections, export earnings, employment contributions, and foreign exchange inflows. The revised tax model adopts a balanced approach that ensures reasonable revenue for the Treasury while supporting industry sustainability and long-term growth.

To maximise the benefits of the new regime, policymakers and industry stakeholders should streamline Customs procedures, enhance gem certification and valuation standards, expand lapidary training programmes, promote Sri Lanka’s gem brand internationally, and develop digital gem trading platforms.

Conclusion

The revised SSCL and VAT calculation method marks a positive turning point for Sri Lanka’s gem and jewellery industry. By replacing a value-based tax system with a fixed-rate model, the Government has addressed industry concerns, reduced operational costs, and reopened growth opportunities for importers and exporters alike. Reconsidering targeted Income Tax exemptions on gem export income could further transform Sri Lanka into a global business hub for gemstones, boosting foreign exchange inflows, creating employment, and strengthening economic resilience. With renewed investor confidence and a supportive fiscal framework, Sri Lanka’s gem sector is well positioned to reclaim its place on the world stage.

Anchored in its long-term commitment to create a sustainable future for Sri Lanka and beyond, Commercial Bank of Ceylon has advanced its ‘ForwardTogether’ sustainability journey by hosting ‘ForwardTogether 2026: Partnering for a Sustainable Corporate Future,’ a focused engagement designed to translate sustainability dialogue into practical action with customers.

The event brought together a curated audience of Corporate and Personal Banking customers, senior representatives of the Bank, and sustainability specialists from the International Finance Corporation (IFC). Translating vision into action and building on the momentum of its landmark national Sustainability Summit, ForwardTogether 2026 was conceived as a sub-initiative under the Bank’s wider ForwardTogether platform, with a sharper emphasis on customer partnership, capacity building and operationalising outcomes between Summit editions, the Bank said.

The session was designed as a high-level engagement to share global and local perspectives on how sustainability is reshaping business competitiveness, investment decisions and long-term resilience. It underscored the growing importance of partnerships between banks and customers as expectations from regulators, markets and investors evolve, and as climate considerations increasingly influence economic outcomes.

A key highlight of the program was a technical presentation by IFC Senior Industry Specialist and Global Product Lead Quyen Thuc Nguyen, titled Climate Change Risks and Green Investment Opportunities. Drawing on global experience, the session offered practical insights into how businesses can reduce risk exposure, improve operational efficiency and unlock sustainable investment opportunities while strengthening long-term value creation.

The event also featured a panel discussion that brought together Commercial Bank Managing Director and CEO Sanath Manatunge, University of Moratuwa’s Professor Ajith De Alwis, and IFC’s Quyen Thuc Nguyen. Moderated by Sri Lanka Institute of Information Technology Researcher Dr. Gayashika Fernando, the discussion explored the role of partnerships, innovation and responsible finance in accelerating sustainable corporate transformation in Sri Lanka, highlighting the need to move from strategy and measurement to action and collaboration.

The ForwardTogether theme was introduced in 2025 by Commercial Bank as a collaborative national platform to convene policymakers, business leaders, development partners and civil society around Sri Lanka’s sustainability and climate agenda. Since then, the bank has sought to carry that collective commitment forward through continued engagements that deepen impact. The bank said ForwardTogether 2026 reflects this intent, reinforcing the bank’s belief that meaningful progress on climate action and sustainable development depends on close collaboration between financial institutions and the real economy.

ForwardTogether 2026 is closely aligned with the bank’s ongoing work to embed sustainability into its core business strategy. As outlined in its Annual Report, sustainability at Commercial Bank is guided by a structured three-pillar approach, with climate action as a central strategic priority. In this context, the bank is developing a comprehensive Climate Transition Plan aligned with national climate ambitions and global best practice, recognising that its climate impact extends beyond its own operations to include emissions associated with its financing activities.

Through its strategic partnership with IFC as knowledge partner, Commercial Bank has adopted the Partnership for Carbon Accounting Financials methodology to assess financed emissions across its portfolios, enabling deeper insight into transition opportunities among selected customers. Platforms such as ForwardTogether are intended to bridge this analysis with customer-facing engagement, supporting clients to understand transition pathways, identify green opportunities and align investments with more sustainable business models.

Initiatives under the ForwardTogether umbrella are designed to make sustainability practical, relevant and value-creating for customers. By combining global expertise, local context and long-standing customer relationships, Commercial Bank continues to position itself not only as a provider of finance, but as a trusted partner and catalyst for sustainable economic transformation.

Through ForwardTogether, Commercial Bank is strengthening its leadership in sustainable banking by supporting customers, communities and the wider economy in progressing towards a more resilient, inclusive and sustainable future.

COMMENTS

C M Holdings PLC said it has entered into a Sale and Purchase Agreement with Vogue Real Estate Ltd., to dispose of a property located in Thalangama South for Rs. 260 million.

The company said the agreement was executed on 21 January. The land, as depicted in Plan No. 3597 dated 27 June 2006 prepared by Licenced Surveyor M.L.N. Perera, has a total extent of A 00-R 02-P 29.20 (around 109.20 perches at Rs. 2.38 million a perch).

C M Holdings said the purchaser has paid Rs. 26 million as an advance, with the balance Rs. 234 million payable on or before 31 March 2026.

The company added that the Deed of Transfer will be executed upon receipt of the full purchase consideration, in line with the terms and conditions of the agreement.

C M Holdings’ share prices closed Rs. 0.70 lower yesterday at Rs. 59.60.

As of end-September 2025, the company reported net assets of Rs. 467 per share at group level and a retained earnings reserve of Rs. 6.8 billion on a Rs. 8.45 billion balance sheet at group level.

Its biggest shareholder was The Colombo Fort Land and Building PLC with a 63.49% stake.

Climate change is no longer a distant threat. It is already reshaping life, communities, and businesses in Sri Lanka today. Rising temperatures, erratic rainfall, prolonged droughts, devastating floods, and eroding coastlines are no longer seasonal challenges but systemic disruptions. According to the Global Climate Risk Index 2023 by Germanwatch, Sri Lanka ranks 88th among the most climate-vulnerable nations in the world, highlighting the urgency for action.

For businesses, this is a two-sided challenge. On one hand, companies are affected by the climate crisis; crops fail, supply chains are disrupted, and infrastructure is damaged. On the other hand, industries themselves contribute to the problem through energy consumption, emissions, and resource-intensive practices. Understanding this dual role is key to building resilient, competitive businesses that can survive and thrive in the coming decades.

The climate reality in Sri Lanka

Sri Lanka’s economy is deeply reliant on its natural resources. Agriculture, fisheries, and tourism form the backbone of the economy, yet they are highly vulnerable to climate disruptions. The World Bank’s 2024 Country Climate and Development Report (CCDR) warns that without urgent mitigation and adaptation measures, climate-related losses could cost up to 3.5% of GDP annually by 2050.

Disasters in Sri Lanka, from floods to droughts, have long taken a heavy toll on people and the economy. On average, the country loses around $ 380 million annually, with floods alone costing $ 240 million per year and affecting millions. Events like the May 2016 Colombo floods, which impacted over 340,000 people and caused $ 310 million in damages, highlight the scale of the threat. Severe droughts, particularly in 2017 and 2018, added $ 166 million in agricultural losses, while the healthcare system spends over $19 million yearly managing flood- and drought-related health impacts. Meanwhile, droughts in 2020 reduced national paddy yields by nearly 20%, pushing up food prices and forcing greater reliance on imports. These figures underline the urgent need for businesses and policymakers to address climate risks.

Agriculture contributes around 7.5% to GDP and provides livelihoods for nearly one in four Sri Lankans, most of them smallholder farmers. These farmers are particularly vulnerable because they lack access to modern irrigation, insurance, and technology, making recovery after a climate event slow and costly.

Sri Lanka’s agriculture and energy sectors are among the hardest hit by climate variability. In 2023 and 2024 alone, combined rice production losses were estimated at over $ 150 million, while the prolonged droughts of 2017 and 2018 caused $ 166 million in damages to coconut production. The country’s energy security is equally vulnerable, the power sector depends on around $1 billion in annual fuel imports, and road transport consumed $ 3.4 billion worth of petroleum products in 2021. These dependencies make Sri Lanka highly exposed to both global fuel price shocks and local climate extremes. For instance, the 2019 drought reduced hydropower generation to just 15% of total electricity production, underscoring how climate change directly threatens economic stability and national energy resilience.

Tourism, the third-largest source of foreign exchange, is equally vulnerable. Nearly 40% of tourism assets are located in high-risk coastal zones, threatened by storms, erosion, and water scarcity. Coral bleaching in parks such as Hikkaduwa and Pigeon Island undermines long-term tourist appeal.

Coastal areas, home to nearly a third of the population and critical for tourism, face rising seas and severe erosion. This threatens ports, fisheries, hotels, and residential communities alike. Coral reefs and marine biodiversity, which support fisheries and attract tourists, are under stress due to warming seas and bleaching events, further impacting livelihoods. Among other economic sectors, the tourism industry can be further affected by increased climate risks.

The effect on small and medium enterprises (SMEs) is especially severe. SMEs make up more than 75% of all registered businesses in Sri Lanka, yet they often lack the financial and technical resources to adapt to climate shocks. Supply chain interruptions, higher insurance costs, and decreased consumer confidence create a perfect storm of challenges for smaller operators.

Businesses: Part of the problem, part of the solution

While Sri Lankan businesses are vulnerable to climate change, they are also significant contributors. GHG emission profile of Sri Lanka comprises as 64.1% from energy sector including transport, 29.5% from agriculture sector and 2% from Industrial Processes and Product Use sector. Electricity generation remains heavily reliant on fossil fuels, with 56% of power coming from thermal sources in 2024.

Manufacturing, construction, logistics, and unsustainable agricultural practices amplify emissions. Deforestation for plantations and excessive fertiliser use degrade ecosystems and reduce natural carbon sinks, further accelerating climate change. Globally, corporations contribute to around 70% of greenhouse gas emissions, highlighting the central role of business in driving and solving the climate crisis.

For exporters in Sri Lanka’s tea, apparel, rubber, and coconut industries, sustainability is no longer optional. International buyers increasingly require verified environmental credentials. Regulatory mechanisms such as the EU Green Deal and the Carbon Border Adjustment Mechanism mean that companies failing to measure, reduce, and report emissions may lose access to key global markets.

Turning risk into opportunity

While the threats are daunting, climate change also presents opportunities for innovation, leadership, and competitive advantage. Companies that act now can safeguard operations, improve market positioning, and contribute to national resilience.

A first step is measuring and managing emissions. Companies can conduct greenhouse gas inventories and set science-based targets (SBTi) aligned with the Paris Agreement. Several leading Sri Lankan exporters, particularly in the tea and apparel sectors, have already taken this step. Measuring emissions helps businesses identify reduction opportunities and communicate their environmental responsibility to global partners.

Transitioning to renewable energy is another critical strategy. Investing in solar, biomass, and small hydro projects can reduce costs and emissions simultaneously. Sri Lanka aims to achieve 70% renewable electricity by 2030, creating opportunities for private-sector investment in distributed generation and energy-efficiency projects.

Incorporating climate risk into corporate strategy is also essential. Companies must account for physical, regulatory, and market risks in their enterprise risk management frameworks. The newly introduced Sustainability Disclosure Standards (SLFRS S1 and S2), issued by the Institute of Chartered Accountants of Sri Lanka, mark a significant step forward. These standards require companies to disclose how climate risks and opportunities affect financial performance. Reporting begins in January 2025 with the top 100 listed companies by market capitalisation and gradually extends to all listed and large unlisted firms by 2030. Initially, companies report Scope 1 and Scope 2 emissions, while Scope 3 emissions will become mandatory two years later. This move makes climate accountability an integral part of financial and strategic planning.

Building sustainable supply chains is also vital. Collaboration with suppliers to reduce waste, improve efficiency, and track emissions strengthens resilience and long-term competitiveness. Export-oriented businesses must adapt to meet EU Carbon Border Adjustment Mechanism requirements to maintain access to international markets.

Investing in adaptation and nature-based solutions further strengthens business resilience. Initiatives like reforestation, watershed restoration, and sustainable agriculture protect ecosystems that underpin economic stability. Green finance instruments, such as sustainability-linked loans, green bonds, and climate funds, provide capital to implement these strategies. Several Sri Lankan banks and development partners are already offering preferential terms for verified green projects, making sustainable investments more accessible.

The road ahead: A call for action

The data paints a stark picture, but it is the human stories behind the statistics that reveal the true cost. Smallholder farmers watch helplessly as droughts destroy crops. Fisherfolk struggle with unpredictable tides and coral loss that erodes fish stocks. Hotel operators on the southern coast face repeated flooding and beach erosion that threatens their livelihoods. These are not abstract numbers, they are lives disrupted, incomes lost, and futures put at risk.

Business leaders increasingly recognise that supporting communities is not just philanthropy but a business imperative. By investing in resilient supply chains, sustainable agriculture, and coastal protection, companies help stabilise the local economy and protect their own operations from climate shocks

Sri Lanka stands at a critical crossroads. Climate change is already costing lives, livelihoods, and national growth potential. But it also offers a chance to reimagine business and economic systems. Companies that embrace low-carbon innovation, transparent reporting, and community-centred resilience can protect their operations and contribute to national transformation.

Climate action is no longer a choice; it is an economic necessity. The businesses that adapt early will not only survive but thrive in a world where markets, regulations, and customers increasingly favour sustainable practices. For Sri Lanka, the question is not whether businesses will act; it is how quickly they can respond. The future belongs to those who act decisively, for profit, for people, and for the planet.

Colombo District Additional District Judge Geethani Wijesinghe recently dismissed a case filed by the National Film Corporation (NFC) against Film Lanka Ltd.

The NFC by a plaint filed on 22 June 2012 had instituted action against a company called Film Lanka Ltd., and claimed Rs. 12,301,570 together with interest from 2010, claiming that the Defendant company, which is operating cinemas Cine City, was liable to pay a levy in terms of certain gazettes and statutes and their accounts, and had demanded monies prior to the institution of this action.

The Defendant company had responded to the said demand and had notified the Department that it is not subject to payment of levies imposed under the National Film Corporation Act from the year 2002.

The Defendant filed answer (amended) dated 30 June 2024 and specifically set out its position. The Defendant in its letter to the Department specifically set out its position that it is a Board of Investment (BOI)-approved company with a BOI agreement and with exemptions given by the National Film Corporation Act, all of which are statutorily and contractually binding.

In a judgment dated 10 December 2025 by Additional District Judge Wijesinghe, the Court after considering all the facts made judgment holding that there is no legal liability for the Defendant company to pay the NFC the monies claimed and dismissed the Plaintiff’s action.

In the course of the judgment, the Court held that several witnesses including a Manager and Acting Accounts Officer had given evidence, together with a witness for the Defendant company who also produced the BOI agreement.

The Plaintiff, namely the NFC, had stated that the Defendant is carrying on a cinema complex called Cine City and that it is claiming monies in a sum of Rs. 12,301,570.70 and interest from 2010.

The Defendant’s stance was that it is subject to the agreements with the BOI and that no monies can be claimed.

Therefore, the issue arose whether the Defendant is protected by the BOI agreement and is exempt from any further levies.

The Court held that the NFC is claiming these levies from the Defendant company from 21 June 2003 and that during such period, the Defendant company was subject to such BOI agreements.

Accordingly, from the year 2002, the Defendant company is not subject to the payment of any levies imposed under the National Film Corporation Act, No. 47 of 1971.

During the course of the lengthy trial, several witnesses had tendered evidence on behalf of the NFC claiming to produce several account statements, including by the General Manager.

The Defendant tendered evidence that under Section 17 of the BOI Law, the BOI is empowered to approve projects and enter into agreements with enterprises granting exemptions from certain laws subject to fulfilment of the investment threshold or any other specified required.

The Defendant party stated that if BOI agreements that are meant to bring in foreign or local investment into the country are challenged by State bodies themselves by unnecessary litigation, it will repulse all investments into the country.

The Defendant had also stated that there is no legal or factual basis to claim these monies from the defendants.

The Plaintiff has not proved its own accounts, which failed to show proper accounting system despite knowing the Defendant’s stance has been pursuing this case from 2012 till 2023.

It was submitted that dismissal of the Plaintiff’s case would be a service to the Plaintiff, Defendant, the State, and the economy of the country.

During the course of the evidence and trial and after final submissions, the case was fixed for judgment.

Judge Wijesinghe thereafter entered judgment rejecting the Plaintiff’s case and upholding the Defendant’s stance.

The NFC was represented by its lawyers and the Attorney General.

Hiran de Alwis, with Randhini Fernando instructed by Chandrakumar de Silva Attorney-at-Law, appeared for the Defendant company Film Lanka Ltd.

Cyclone Ditwah has left Sri Lanka facing one of its most complex reconstruction challenges in recent history. According to the World Bank’s Global Rapid Post-Disaster Damage Estimation, direct physical damage to housing, infrastructure, agriculture and public facilities is estimated at approximately $ 4.1 billion. Out of this, $ 3.282 billion is for Infrastructure and Residential/Non-Residential Buildings and contents. The remainder of the $ 4.1 billion (approximately $ 814 million) is attributed to agriculture-related damage.

The scale of rebuilding required is unprecedented, particularly in the context of current fiscal and capacity constraints. At such a moment, speed of delivery is not a luxury; it is a necessity. Delays in reconstruction do not merely inconvenience communities. They prolong displacement, escalate construction costs, disrupt livelihoods, and erode public confidence. The single most decisive factor in avoiding these delays is how procurement is structured and implemented.

Emergency procurement exists

Sri Lanka’s Procurement Guidelines 2024, issued by the National Procurement Commission, already provide for emergency and expedited procurement in circumstances where normal tender timelines would result in unacceptable delay or risk to life, safety or essential services.

Emergency procurement does not mean abandoning transparency or accountability. It lawfully allows:

Shortened bidding and evaluation timelines

Restricted or limited bidding where justified

Direct contracting in clearly defined urgent situations

Framework agreements for recurring works and supplies

Delegated financial authority to accelerate approvals

Post-award audits in place of pre-execution delays

The National Construction Association of Sri Lanka (NCASL) has also proposed a methodology for emergency reconstruction activities to the President, which shall be of great value. It proposes emergency contracts to be pre-framed with a maximum value of

Rs. 600 million per contract (or as applicable to RDA or other agencies).Contracts to be awarded based on unit rates, using a pricing formula such as HSR + 25% + 2.5% SSCL (or similar).

Why procurement delays construction

From an industry perspective, reconstruction delays rarely occur because contractors lack capacity. They occur because:

Approval delays

Designs are finalised without aligned procurement plans

Tenders are repeated unnecessarily

Approvals move sequentially instead of in parallel

Materials and specialist services are procured haphazardly

Sub-contractors are engaged late or informally

A practical way forward: Design-and-build

For large-scale reconstruction design-and-build procurement offers a practical and time-efficient solution. However, it should:

Require early submission of concept designs and performance specifications

Mandate clear identification of key sub-contractors at bid stage

Specify minimum and maximum numbers of sub-contractors for major disciplines such as civil works, MEP, geotechnical and specialist systems

Include named specialist sub-contractors for high-risk or technically complex components

Creating the conditions for speed

First, financial constraints on contractors must be acknowledged. Excessive bonding and rigid collateral requirements immobilise capital at the very moment rapid mobilisation is required. Proportionate risk management – supported by staged payments and appropriate guarantees – allows more firms, including capable SMEs, to participate meaningfully.

Second, labour and equipment must move freely. Reconstruction is a national priority and should be treated as such. Skilled and semi-skilled workers must be able to mobilise across districts without unnecessary administrative friction, and temporary measures should be available where workforce shortages arise. It is neither unprecedented nor unreasonable to consider temporary, regulated access to foreign construction labour for clearly defined roles and durations.

Third, material supply chains must be stabilised. Delays caused by aggregate shortages, quarry approvals or equipment constraints quickly cascade into stalled sites. Time-bound, well-regulated facilitation measures can prevent these disruptions without compromising environmental or safety standards.

These are not concessions; they are practical responses to post-disaster market realities.

Institutions must act together

Fast-tracked procurement cannot be driven by one ministry or agency acting in isolation. It requires coordinated leadership across institutions that already exist and are fully capable.

Key institutions include:

National Procurement Commission – regulatory oversight and guidance

Ministry of Finance/Treasury – delegated financial authority and funding flow

Line Ministries and Provincial Councils – project ownership and execution

Professional Bodies, including NCASL, MCSL, CIOB, etc- technical standards, peer review and industry mobilisation

Professional bodies, in particular, have a critical responsibility. This is not about replacing government authority. It is about strengthening delivery capacity at a moment of national urgency.

Conclusion: Build faster, build better

Sri Lanka does not need to reinvent procurement to rebuild after Ditwah. The legal tools already exist. The construction industry has the technical capacity. Professional institutions are ready to support. What is required now is decisive leadership and disciplined execution so that Sri Lanka can be rebuilt faster.

The Indian High Commission in Colombo celebrated India’s 77th Republic Day in Colombo yesterday.

It was on 26 January 1950 that the Indian Constitution – the world’s longest written Constitution -entered into force. The Preamble to the Constitution declares India to be a Sovereign, Socialist, Secular, Democratic Republic.

On the occasion, Indian High Commissioner Santosh Jha unfurled India’s national flag at India House – the residence of the Indian High Commissioner- and inspected the Guard of Honour. He also read out excerpts from Indian President Droupadi Murmu’s Republic Day address.

The event featured patriotic songs by the Sri Lanka Navy Band and a vibrant cultural program organised by the High Commission’s cultural arm, the Swami Vivekananda Cultural Centre, celebrating India’s rich diversity through captivating dance and music performances.

This year also marks an extraordinary milestone – the 150th anniversary of ‘Vande Mataram,” the national song of India. Written by Bankim Chandra Chatterjee in 1875 and later immortalised in his novel Anandamath, Vande Mataram means ‘Mother, I bow to thee.’ The timeless composition is a heartfelt tribute to the motherland. The performances paid homage to this iconic anthem, reflecting not only its melody but also its enduring message of love, reverence, and unity.

Earlier in the day, the Indian High Commissioner and officials of the High Commission of India also paid tributes to the martyrs of the Indian Peace Keeping Force (IPKF) at the IPKF memorial. Commemorating the Republic Day, a concert, ‘Timeless Bollywood Melodies: Anuradha Paudwal Live in Sri Lanka,’ was organised on 23 January to celebrate the enduring cultural bonds between India and Sri Lanka.

Further, two Indian Coast Guard ships, Varaha and Atulya, arrived in Sri Lanka and will visit Colombo and Galle during their stay during 24-27 January.

On the occasion of the 77th Republic Day of India, a ceremonial reception was organised in the evening at the India House with several dignitaries from all walks of life in Sri Lanka attending.

Consulates General of India in Hambantota and Jaffna and the Assistant High Commission of India in Kandy also observed the 77th Republic Day of India by organising special events.

Dialog Enterprise, together with the National Chamber of Exporters of Sri Lanka (NCE), recently hosted ‘From Sri Lanka to the World – Digital Marketing Strategies for Export Growth,’ a knowledge-sharing seminar focused on strengthening the digital capabilities of Sri Lankan exporters.

The event brought together industry experts to discuss how digital transformation, data-driven marketing, and the use of artificial intelligence can help exporters enhance visibility in global markets, reach new customer segments, and improve overall competitiveness.

Digital transformation has become a critical enabler for Sri Lankan exporters as global trade continues to shift towards technology-led engagement and decision-making. From automating processes to strengthening digital presence and using analytics to understand international demand, the integration of modern digital tools plays a vital role in boosting export readiness. The seminar addressed these needs by offering practical insights into digital marketing strategies, AI-driven customer engagement, and best practices for building a credible digital footprint that supports business growth.

The session drew the participation of over 100 NCE members, providing them with actionable learning on emerging digital trends, platform optimisation, content strategy, and the effective use of AI to elevate brand presence in international markets. Participants were also guided on how to apply these tools within their export operations to gain measurable improvements in efficiency and market outreach.

NCE Secretary General/CEO Shiham Marikar said: ‘We are pleased to partner with Dialog Enterprise in equipping our members with vital digital skills and knowledge. This collaboration aligns with our mission to enhance the competitiveness of Sri Lankan exporters by fostering innovation, adaptability, and global market readiness.’

Dialog Enterprise, Dialog Axiata PLC Group Chief Officer Navin Pieris said: ‘Our collaboration with the National Chamber of Exporters underscores our shared commitment to enabling Sri Lankan exporters with the technology and digital insights they need to compete globally. Through initiatives like this, we aim to help businesses unlock new opportunities and contribute to the nation’s digital economy.’