Category: Daily Financial Times

A discussion on addressing challenges in Sri Lanka’s agriculture sector, as well as related environmental issues, under the Memorandum of Understanding on Enhancing China-Sri Lanka Agricultural Productivity, was held yesterday under the patronage of the Secretary to the President, Dr Nandika Sanath Kumanayake.

During the discussion, extensive deliberations took place on jointly implementing programmes between China and Sri Lanka aimed at resolving issues in the country’s agriculture sector and enhancing overall productivity.

Further discussions focused on the potential use of Chinese technology and tools to address challenges in the agriculture sector and associated environmental concerns. Attention was also given to minimising crop damage caused by wild animals, as well as the assistance that could be extended by China for the cleaning and restoration of the Beira Lake.

Among those present at the discussion were Wayamba University Senior Lecturer of the Faculty of Agriculture and Plantation Management Vishvajith Kandegama; Guizhou University’s Professor Zhang Guozhu and Hubei Province Department of Commerce and Management officials Cao Xuan and Wei Ping long with several other representatives.

Prime Minister Dr. Harini Amarasuriya has said the contributions of women continue to be systematically undervalued, particularly in unpaid care work, informal labour, and the agriculture sector, even as women increasingly assert their agency in political, economic, and social spheres around the world.

She made these remarks on Wednesday (21) while addressing the World Woman Davos Agenda 2026 at the World Woman House, held on the sidelines of the 56th Annual Meeting of the World Economic Forum (WEF) in Davos-Klosters, Switzerland. The high-level forum was organised under the theme ‘Women Leading the Changing Global Order.’

‘The exclusion of women from decision-making is not incidental; it is structurally maintained through gendered power hierarchies. Addressing these barriers is about transforming institutions and power structures to create enabling environments in which women can lead with confidence,’ the Prime Minister said.

From a political standpoint, Dr. Amarasuriya noted that women are often excluded from decision-making through entrenched gendered power hierarchies. She said that attacks on women in leadership, particularly in politics, through harassment, character assassination, and systemic marginalisation, frequently force capable women to withdraw or avoid participation, reinforcing patriarchal structures.

She stressed that overcoming these barriers is not about protection, but about transforming institutions and power structures to create environments where women can exercise leadership with autonomy, authority, and confidence.

Referring to Sri Lanka, the Prime Minister said the country demonstrates what is possible when political commitment aligns with the resilience of its people. She noted that under the current inclusive Government, historic strides have been made in political representation, with 20 women elected to Parliament for the first time, reflecting a shift towards more inclusive governance.

The National Gem and Jewellery Authority (NGJA) has introduced a revised and significantly more concessional tax framework for gem imports in a bid to revive declining trade in gemstones, retain businesses within the country and support an ambitious export target of $ 1 billion in 2026.

Announcing the reforms at a media briefing on Monday, NGJA Chairman and Chief Executive Officer Dr. S.B. Chaminda said Sri Lanka aims to achieve $ 1 billion export revenue for this year.

He said the new method for calculating the Value Added Tax (VAT) and Social Security Contribution Levy (SSCL) on gem imports was designed to ease the tax burden on importers, following a sharp contraction in gem imports and exports after the levies were imposed from 1 January 2024.

‘The introduction of VAT and SSCL on gem imports in 2024 had resulted in a significant decline in import volumes throughout 2024 and 2025 when compared with 2023, with spill over effects on exports as well,’ he added.

Under the previous system, VAT at 18% and SSCL at 2.5% were calculated on the declared value of imported gem parcels, a method which Dr. Chaminda, described as excessively punitive for a sector dealing with high-value, but low-volume consignments.

‘This imposed a heavy tax burden on importers and discouraged trading activity,’ he said, adding that the contraction in imports had undermined Sri Lanka’s traditional role as a regional hub for gem cutting, polishing and re-export.

Following consultations with the Industries Ministry and the Finance Ministry, authorities have now moved to a simplified tax assessment model based on a deemed value linked to the weight of imported gemstones, rather than their market value.

‘Under the revised system, precious gemstones such as rubies, sapphires and emeralds will be assigned a deemed value of $ 900 per kilogram, while semi-precious stones will be valued at $ 50 per kilogram for tax purposes,’ he said.

The Chairman said the VAT and SSCL will be calculated on these fixed values, providing predictability and substantially lowering the effective tax payable by importers.

He explained that under the new system, a one-kilogram parcel of precious gemstones with a deemed value of $ 900 would attract a combined VAT and SSCL charge of $ 184.5, equivalent to around Rs. 57,195. For semi-precious stones, a one-kilogram parcel valued at $ 50 would incur just $ 10.25 in VAT and SSCL, or around Rs. 3,200.

Dr. Chaminda noted that prior to the introduction of VAT based on assessed value, Sri Lanka Customs had levied a flat clearance charge of $ 200 per parcel regardless of weight or value. However, once VAT was applied on assessed values, import volumes fell sharply, prompting concerns that the industry was losing competitiveness.

The revised framework also introduces a carat-based assessment for small consignments weighing less than one kilogram. ‘Precious stones such as rubies, sapphires and emeralds will be charged at a deemed value of $ 5 per carat, while semi-precious stones will be charged at $ 1 per carat. Under this structure, a one-carat precious stone would attract VAT and SSCL of around $ 1, while a one-carat semi-precious stone would be taxed on a deemed value of $ 0.20, translating to roughly Rs. 12 after taxes,’ he explained.

Dr. Chaminda also disclosed that the previous tax regime had accelerated the migration of Sri Lanka’s gem trade to competing centres such as Thailand, Dubai and Hong Kong, where more liberalised and simplified tax systems are in place. ‘The new reforms are intended to reverse that trend and re-establish Sri Lanka as an attractive destination for gem trading and value addition,’ he stressed.

Highlighting the broader economic impact, he said the revised tax structure would encourage greater participation by young entrepreneurs in gem importing, cutting, polishing and re-exporting, strengthening the domestic value chain. ‘With exports targeted at $ 1 billion in 2026, we expect the reforms to play a critical role in restoring confidence, increasing volumes and positioning Sri Lanka’s gem and jewellery sector for sustained growth,’ he said.

He also noted that a proposal has been submitted to the Finance Ministry to consider only a 4% income tax from overseas remittances from gem sales. ‘This however is still at discussion level,’ he added.

Sumathi Holdings Chairman Jagath Sumathipala is leading the Group’s commitment to renewable energy with the commissioning of a 5-megawatt (MW) ground-mounted solar power plant at Wewila, Eheliyagoda.

This marks Sumathi Holdings’ strategic entry into solar energy, following the success of the Sujala Shakthi Hydropower Plant, and reflects its long-term vision to support Sri Lanka’s transition to cleaner and more sustainable energy.

The project was developed under Sumathi Energy Company Ltd, a subsidiary of Sumathi Holdings.

Equipped with advanced photovoltaic panels and a SCADA-based monitoring system, the Wewila Solar Plant generates efficient and reliable power even under variable weather conditions. It is expected to produce around 7 million kilowatt-hours of clean electricity annually, offsetting approximately 3,000 tons of CO2 emissions, and supplying the equivalent annual electricity demand of around 2,500-3,000 Sri Lankan homes.

Chairman Jagath Sumathipala said: ‘This project sets a clear path for sustainable regional development by reducing carbon emissions while protecting natural resources across the country. It is an investment not just in energy, but in the long-term wellbeing of the generations who will shape Sri Lanka’s future.’

The successful commissioning of the Wewila Solar Plant expands Sumathi Energy’s renewable energy portfolio and builds upon the momentum of the Group’s earlier hydro initiative. This milestone reinforces Sumathi Holdings’ role as a forward-looking contributor to Sri Lanka’s energy transformation and its journey towards a more sustainable future.

Tourism Minister Vijitha Herath has called on Sri Lankan expatriates to invest in the country’s tourism industry that has seen a rebound since the COVID-19 pandemic and economic crisis.

Taking to social media, Herath said: ‘I attended the ground-breaking ceremony of the Aureum luxury hotel complex developed with investments from Luxembourg. I pointed out that businesses that were closed due to the Coronavirus pandemic are reopening under new investors due to the economic and political stability that has emerged in the country.’

‘Last year, we led the tourism industry to a major milestone, and as a result, European investments have come to Sri Lanka. The reopening of this tourism industry project after many years of closure is a positive step for the country. Therefore, I kindly invite all Sri Lankans living abroad to bring new investors to the country,’ he added.

The sector recorded a modest financial recovery in 2025, generating just over $ 3.2 billion in revenue, as growth in earnings lagged the surge in visitor arrivals. Despite record arrivals of more than 2.36 million, tourism income rose by only 1.6% year-on-year, a widening gap between rising volumes and per-visitor spending following a downward revision in average daily yields, and raising fresh concerns about the quality and value of tourism-led growth.

A complete bowling effort from the spinners in particular saw Sri Lanka beat England by 19 runs in the first ODI to go one-up in the three-match series at the R. Premadasa International Cricket Stadium yesterday.

The spinners made the difference keeping things tight while also striking regularly to apply constant pressure as England tried to chase down a target of 272. Despite a late cameo from Jamie Overton (34 off 17 balls, 4 fours, 2 sixes), which pushed the game deep, it was eventually not enough to take England over the line as they were bowled out for 252 in the final over with four balls to spare.

England were dented early by the loss of Zak Crawley for six. Although Ben Duckett (62 off 76 balls, 5 fours, 1 six) and Joe Root (61 off 90 balls, 5 fours) built the innings with a steady partnership of 117 off 146 balls – both reaching their fifties in the 25th over – they, however, found it difficult to shift gears against Sri Lanka’s spinners, who made full use of the conditions and struck at regular intervals.

Jeffrey Vandersay, who came in for Wanindu Hasaranga, took 2/39, and Dunith Wellalage 2/41. Wellalage had an outstanding game, holding onto two catches-one of them a brilliant one on the boundary line-and hitting an unbeaten 25 off 12 balls to beat Kusal Mendis to the Player of the Match award.

If the spinners were brilliant, Sri Lanka’s fast bowlers were rather disappointing as they sent down five wides and bowled poorly to allow England to add 39 for the last wicket off 16 balls, with Overton making full use of the lapses. Although they took four wickets, they conceded 103 runs off 13.2 overs.

The average first-innings score at this venue is around 223, but Sri Lanka went well beyond that to make 271-6, giving them a solid platform to push for a series-opening win.

The innings was anchored by Kusal Mendis. He arrived at the crease after Pathum Nissanka (21) and Kamil Mishara (27) had put on a steady 50-run opening stand off 63 balls, took his time to settle, and then assumed complete control of the innings. Even as wickets kept falling at the other end, Mendis held firm, stitching together a crucial 88-run partnership off 98 balls with Janith Liyanage (46 off 53 balls, 5 fours, 2 sixes) for the fifth wicket to arrest the slide and rebuild momentum.

Mendis showed remarkable grit, battling through a back injury picked up in the 60s and finished unbeaten on 93 off 117 balls (11 fours). Wellalage (25* off 12 balls, 3 fours, 1 six) then provided a handy cameo in the final over, ensuring Sri Lanka pushed past the 270 mark. Sri Lanka scored 80 off the final 10 overs-23 of them coming in the final over of the innings bowled by Overton-to give themselves a competitive total. It was this decisive over that cost England the match.

The pitch wasn’t a belter by any means and the spinners found plenty of assistance. That was reflected in the bowling figures, with Adil Rashid (3/44) and Liam Dawson (1/31) standing out as England’s most effective bowlers, combining for four wickets while conceding just 75 runs. England spinners bowled a total of 33 overs in the innings – the second highest since 36 against Pakistan in Sharjah in 1985.

England cricketers wore black armbands during the match to pay tribute to former England cricketer Norman Gifford and former England and Wales Cricket Board (ECB) Chief Executive David Collier.

The second ODI will take place at the same venue tomorrow.

The recent debate and controversy over the single largest coal procurement needs to be unravelled.

‘Trident,’ the selected coal supplier to Lanka Coal won the bid at CIF price of $ 98.50, represented by Rakitha Rajapaksa. The next lowest bid is by ‘Potencia (SUEK)’ at CIF $ 100.00, with ties to Namal Rajapaksa (handled by Yo).

JVP/NPP wanted to break away from previous coal suppliers and position themselves with a fresh outlook-which is great! But to do that, they altered standard procurement processes and proven tender guidelines. Idiots.

These tender processes and guidelines have years of evolution in them and have been developed through fire. Yes, in 2022 and 2023 there were procurements outside these tender processes because Lanka Coal/SL was not able to produce Letters of Credit (LCs) due to default and Aragalaya. The same goes for all other procurements/tenders and paying government salaries.

A tender that should have closed in June or July was pushed to September. The guided 42 days+ (normally 45 days or 60 days) tender bid submission preparation time was limited to 21 days. Yes, you need time to produce all documents required for the bid submission. Some of these requirements that take time are: multi-million USD bid bonds, even larger performance bonds, PCA3 from e-ROC, Power of Attorney through the SL Mission/Embassy, and many more. Note that any Bond has to be underwritten by a Sri Lankan bank.

Tender bid qualification criteria were lowered to allow more companies to be eligible to bid, one of which is Trident. Some of the tender qualifying criteria that were lowered are required past performance, dollar-figure company turnovers, and MT coal turnovers.

SUEK Russia! Russia can back their prices and supply, and it is nearly impossible for anyone else to perform at low cost when the tender dictates a low-cost option. Anyone with even a slight bit of knowledge should have tailored the tender in a way that a proven supplier like ‘Aditya Birla’ (Swiss/Singapore) wins. Aditya bid at CIF $ 105.00.

Now the problem is that Trident can barely supply at the bid price of $ 98.50. Prices are tight, with no leeway for contingencies or unforeseeable events. Trident has missed a few Lanka Coal scheduled laycans, and we are behind schedule now. December was scheduled for 3 shipments, and January had 6 shipments. There are likely penalties that Trident would have to pay for deviations in accordance with tender and contractual obligations. These penalties are costly, and the AG is no longer preferred by this Government. Does Trident have the capacity to pay the penalties and continue with shipments? Will there be a shortage of coal? These are all good questions and call for a Plan B.

The single largest procurement for the country-1.5 million MT × $ 98.50, nearly $ 150 million-has been delayed and mishandled due to idiocracy. This will lead to ‘cost-reflective’ electricity bills.

SLT-Mobitel, in collaboration with Fintelex Ltd., has launched ‘Yaya Agro’, an exclusive all-in-one smart agriculture app designed to empower Sri Lankan farmers with the tools they need to grow smarter, safer, and more sustainably.

Yaya Agro represents a new era of digital farming in Sri Lanka combining technology, expert knowledge, and community empowerment to provide farmers the confidence to make smarter decisions, improve productivity, and build a sustainable future.

Developed with support from GIZ and Hatch and validated by leading academic and professional institutions including the University of Colombo, Institute for Agrotechnology and Rural Sciences, and the Sri Lanka Red Cross Society, Yaya Agro combines agricultural expertise, real-time weather updates, first aid support, and AI-powered assistance into a single, easy-to-use platform.

The launch of Yaya Agro positions SLT-Mobitel as an innovative, inclusive, and collaborative technology leader. Partnering technology and academic institutions, the company extends its role outside the sector into agriculture, empowering farmers with AI-driven tools, multilingual access, and market connectivity. The initiative also strengthens SLT- Mobitel’s image as a champion of digital empowerment and sustainable development in Sri Lanka.

Functioning as a comprehensive digital companion, Yaya Agro is positioned as a digital farming companion, bringing precision agriculture, real-time support, and market access to the fingertips of every Sri Lankan farmer.

Whether managing a small home garden or a large commercial farm, the app equips farmers with vital insights to improve crop yield, reduce risks, and connect directly with buyers through the integrated online marketplace.

Yaya Agro offers farmers daily crop information with expert tips on management, pest control, and best practices, all validated by the University of Colombo. It provides accurate, location-based weather forecasts to help plan farming activities more effectively. The app also delivers life-saving first aid tutorials and safety information verified by the Sri Lanka Red Cross Society, ensuring farmers are prepared for emergencies. With the AI chatbot assistant, farmers can access instant, personalised advice around the clock, with smart notifications delivering timely alerts and reminders tailored to crop cycles.

To make learning inclusive and accessible, Yaya Agro is available in Sinhala, Tamil, and English, offering interactive educational content such as videos, voice guides, and infographics. The app also integrates an online marketplace, developed in partnership with GIZ and Hatch, enabling farmers to connect directly with buyers and expand their reach.

In an article published in the Daily FT on 2 December, the former Chairman of the Sri Lanka Tourism Development Authority (SLTDA) Priantha Fernando has warned that enforcing tour guide licencing requirements ahead of the high tourist season will have ‘ominous consequences’: unleashing ‘operational chaos’, fostering ‘controversy and instability’ and damaging Sri Lanka’s reputation.

Mr. Fernando’s statements both mis-diagnose the problem and misdirect the solution. The real challenge facing Sri Lanka’s tourism sector is not the enforcement of long-standing regulations, but the continued failure to plan for growth while allowing uneven standards, informality and exploitation to persist. It is largely because the sector has been allowed to operate without enforcement of standards that guide shortages, sub-standard services and reputational problems have now become acute. Delaying action now will further entrench the very weaknesses that have undermined the tourism sector for years.

A crisis long in the making

The Tourism Act No. 38 of 2005 gives the SLTDA the power to advise policymaking on all matters relating to the tourism and travel industry and prepare regulations for tourist establishments and tourist services. In Sri Lanka, it is mandatory for any person providing tourist guiding services to obtain a licence from SLTDA. This licence is obtained by completing a full-time training course conducted by the Sri Lanka Institute of Tourism and Hotel Management, with renewal contingent on continuous skills development and meeting physical and mental fitness standards.

Tour guides’ skills, experience and professionalism play a key role in ensuring that visitors to Sri Lanka receive a consistently rewarding travel experience that reflects positively on the country. Even though local tour operators use tour guide services to provide high-quality experiences for their clients, they have continuously resisted efforts to institute a fair minimum daily rate. Tour guides have highly informal jobs, with low and inconsistent pay and no benefits or social protection. The seasonal nature of tour guides’ work further contributes to unpredictable and unstable employment.

As Mr. Fernando rightly points out, the dearth of skilled and qualified guides is indeed key challenge facing the industry. Non-competitive wages, unpredictability and lack of social security are some of the key reasons for this shortage. Setting a minimum guide wage would be one way to encourage more to enter the field, increasing the supply of guides overall.

Clear and transparent wages for guides would also address the problem of commission abuse that is prevalent across the industry. Fernando claims that guides exploit tourists by directing them to businesses. However, he neglects to acknowledge that it is often tour operators themselves who require guides to take visitors to specific establishments, in some cases going so far as to withhold payment of daily guide wages unless these shopping stops are completed. It is widely known in the industry that the associated commissions are frequently shared with the tour operators who coordinate directly with the establishments concerned.

It is plainly unpleasant for tourists to be pushed into unnecessary shopping stops during what they expect to be a cultural or leisure experience. When visitors feel exploited, it reflects poorly not only on the guide and tour operator, but also on Sri Lanka as a destination. Such practices undermine the country’s efforts to position itself as a high-quality, value-driven tourism offering.

Guides themselves are ready to support serious efforts to curb these practices, including through transparent wage structures that are not implicitly subsidised by commissions. This is yet another the reason why the establishment of clear minimum guide wages is critical. Yet, proposals to formalise guide remuneration has repeatedly faced resistance from tour operators.

Lowering standards is not increasing supply

Meanwhile there has also been a rise in unlicenced and untrained individuals being employed by tour operators as ‘guides’ in recent years, which the Sri Lanka Institute of National Tourist Guides Lecturers (SLINTGL) has requested SLTDA to address as a priority. Tour operators have sought to justify low wages paid to professional guides on the basis that sub-standard guiding represents an increase in the ‘supply’ of guides. In reality such practices are only serving to lower standards for high-quality experiences and services.

In 2023, the Sri Lanka Institute of National Tourist Guide Lecturers (SLINTGL) petitioned the Supreme Court to compel SLTDA and the Ministry of Tourism to take action against unregistered and unlicenced individuals involved in delivering tourism services. In response, the SLTDA recently committed to establishing an Enforcement Unit in accordance with the Tourism Act-an acknowledgment of years of inaction. This adjustment is not a crisis, but a long overdue correction.

For years, tour operators and industry leaders have excused institutional failures on the basis of practical difficulties. If guest dissatisfaction and reputational damage are genuine concerns, then the solution is clear: enforce licencing, enforce minimum standards, and expand training in parallel. A deference to the short-sighted interests of a small number of powerful tour operators risks subordinating the long-term health of the industry to narrow commercial considerations.

This is particularly naïve at a time when Sri Lanka faces stiff competition from other destinations and increasingly discerning, well-informed travellers.

What the sector requires now is not further excuses, but serious leadership. This is not the moment to kick the can further down the road.

Sri Lanka is stepping up efforts to position itself as a leading medical tourism and wellness destination in the Asia-Pacific, with the launch of the Sri Lanka GlobalHealth Asia-Pacific Conference, Summit and Awards 2026 and a parallel push to promote the country’s healthcare capabilities through major international airline platforms.

GlobalHealth Asia-Pacific (GHAPAC) formally announced the Sri Lanka edition of its flagship Conference, Summit and Awards at ITC Ratnadipa, Colombo, which will also mark the 10th anniversary of the GlobalHealth Asia-Pacific Awards.

The two-day event will take place on 19 to 20 May 2026, representing GHAPAC’s first dedicated healthcare awards and knowledge platform in Sri Lanka.

GlobalHealth Asia-Pacific Chairman Narender Panjwani said the Sri Lanka platform is designed as a pan-Asian ecosystem for recognition, knowledge exchange and collaboration, while converting global visibility into measurable patient flows.

‘Medical tourism today is not just about treatment; it is about trust, accessibility and global reach. By aligning with major airline platforms and launching this regional summit in Sri Lanka, we are placing the country’s healthcare ecosystem directly in front of a global audience,’ he said.

The Sri Lanka edition represents a key milestone in GHAPAC’s regional expansion and will recognise hospitals, medical centres, clinics, wellness and aesthetic centres across more than 30 specialist categories, including oncology, cardiology, dentistry, aesthetics and preventive healthcare. Alongside the awards gala, the program will feature a conference and summit focused on healthcare standards, innovation, patient safety and future-ready healthcare systems.

World Rural Tourism Council Vice Chairman Dr. Rohantha Athukorala emphasised the importance of branding and transparency in medical tourism.

‘Patients choose destinations where information is clear, standards are visible and outcomes are credible. Airline platforms offer an unmatched level of trust and exposure for healthcare destinations,’ he said.

Adding a technology and quality-of-care perspective, Canon Medical Systems Corporation General Manager, Global Healthcare IT Senior Director and Jury Member of the awards Dr. Ravi Bikram said digital capability and clinical excellence would be critical to sustaining medical tourism growth.

‘Patients today are increasingly informed and technology-aware. Destinations that combine clinical expertise with digital health systems, data-driven care and international standards will gain long-term credibility. Sri Lanka has strong potential to scale its medical tourism offering by aligning technology, quality and patient experience,’ He noted.

Nawaloka Hospitals, was honoured with the prestigious title of Leading Hospital in AI and Innovation of the Year in Asia Pacific at the GlobalHealth Asia Pacific Awards held in Bangkok last year. The landmark achievement first time a Sri Lankan hospital has secured this title places Sri Lanka firmly on the global healthcare innovation map and highlights the country’s capability to deliver advanced, technology-driven medical care.

Crucially, the initiative is closely aligned with Sri Lanka’s ambitions to grow medical tourism and wellness travel. As part of this strategy, GlobalHealth Asia-Pacific has secured visibility across five prominent international airlines, allowing Sri Lanka’s private healthcare and wellness offerings to be showcased directly to millions of long-haul passengers through in-flight publications, digital platforms and strategic brand placements.

Founded in 2011, GlobalHealth Asia-Pacific is a well-established regional healthcare platform that convenes policymakers, healthcare providers, hospital groups and innovators across Asia-Pacific. It has hosted high-impact conferences and awards in markets including Thailand, Bali, Ho Chi Minh City, Kuala Lumpur and Singapore, with its awards journey beginning in Thailand in 2016.

The event is supported by industry sponsors including IHH Healthcare, OmniHealth and For The Optics, reflecting strong private-sector engagement in Sri Lanka’s healthcare and wellness journey.

With global demand for wellness travel and elective medical procedures rising, Sri Lanka’s medical tourism offering-spanning advanced clinical care, Ayurveda, wellness and recovery-supported by skilled professionals and competitive pricing, and amplified through international airline partnerships, is expected to strengthen the country’s position as a preferred Asia-Pacific healthcare destination.