Category: Daily Financial Times

My interest in performance-based compensation in Sri Lanka heightened when combating the trickle-down effects of the Global Financial Crisis of 2008 and the end of the civil war in 2009.

The conclusion of Sri Lanka’s civil war in May 2009 ushered in an era of optimism, excitement, and perceived stability. There was great anticipation of a boom in several key sectors, particularly the Tourism Industry. Businesses that had taken risks and weathered the conflict, operating in a sheltered market with limited competition, had enjoyed super profits. This prosperity, coupled with the Government’s push for post-war development, signalled a ripe opportunity for new entrants, both local entrepreneurs and powerful players of global repute.

The rapid influx of these new entrants fundamentally reshaped the competitive landscape. What followed was a classic case of supply outpacing demand growth, especially in industries directly benefiting from the peace dividend. The increased market presence meant that firms were no longer able to command premium prices unless they had significant, non-replicable barriers to entry such as legal protection where patents or copyrights secured temporary monopoly rights, extreme economies of scale that made it cost-prohibitive for a second firm to enter (e.g., utility infrastructure), network effects where the value of the product increased exponentially with each new user (e.g., social platforms), brand dominance that promised consistently reliable services/products or control of key resources through exclusive access to rare raw materials or proprietary technologies. In the absence of such an unassailable competitive advantage, the competitive focus quickly shifted, and firms found themselves competing on price.

This fierce price competition triggered a rapid decline in market prices, making it exceedingly difficult to maintain previous profit margins. For existing firms, the cushion of ‘super profits’ vanished, replaced by the relentless pressure of a rapidly maturing, hyper-competitive market. Just a year earlier, Sri Lanka had suffered the negative impacts of the Global Financial Crisis, with tea and garment exports declining and tourist arrivals dropping due to the global economic slowdown. Survival was contingent upon absolute efficiency.

With margins squeezed, businesses had to pivot sharply from focusing on sales growth to meticulous cost scrutiny. Every operational expenditure came under the microscope, as even minor savings could make the difference between a viable margin and a loss. The effective cost of production and/or service delivery became the new battleground. This high-pressure environment inevitably brought focus to one of the most significant and often least flexible components of operating costs, i.e., labour. The economic situation demanded strategic solutions for sustained profitability, setting the stage for a broader discussion on how to optimise labour resources and reduce their effective impact on the final price.

The core challenge for businesses lies in navigating the delicate balance between the labour cost-driven pricing and market resistance. It was recognised that inflation-matching pay rises are permanent and add to the cost of goods sold and that in competitive markets, where consumers have many alternatives, it was not possible to increase product prices indefinitely to cover escalating fixed labour costs. A tendency to resort to price stickiness, this being the reluctance to adjust prices upward in the fear of losing market share gradually took root. Faced with consumers who are either unwilling or unable to pay higher prices, firms had to find a way to maintain profitability without eroding their competitive position. The entrenchment of a concept of performance-based compensation, also known as ‘Pay for Performance’ (PFP) was identified as a sustainable way forward.

I was a part of the Group Executive Committee (GEC) of John Keells Holdings PLC (JKH), Sri Lanka’s largest corporation, in 2008. It was during that time that JKH, led by Susantha Ratnayake, embraced and institutionalised a Pay-for-Performance (PFP) philosophy. It was the ‘mother’ of all transformations and was a classic example of change management. This strategic initiative fundamentally rescripted JKH’s reward structure. Guaranteed compensation was deliberately suppressed to allow a disproportionate increase in the results-driven variable component tied to measurable achievement. The framework differentiated rewards for performers, injected velocity, and accountability, and firmly entrenched a culture of meritocracy. To be a part of a team architecting this groundbreaking benchmark for corporate compensation in the nation was, to me, a source of significant professional pride.

Driven by powerful macroeconomic constraints, particularly high inflation and the consequent loss of corporate pricing power, Pay for Performance (PFP) compensation structures have been a defining feature of the modern labour market. Historically, salary increases were tied, in the main, to inflation rates, providing employees with Cost-of-Living Adjustments (COLAs) to maintain purchasing power. However, as sustained inflation led to increased operational costs, businesses found themselves in a quandary. They were finding it difficult to pass on the traditional wage hikes to consumers. PFP, which links a portion (such portion increasing progressively based on decision-making power) of an employee’s income directly to measurable results, offered a strategic solution to this dilemma by transforming labour costs from a fixed liability into a variable investment tied to productivity and revenue generation.

PFP modes, such as bonuses, commissions, profit-sharing, merit-based pay, and employee share options decouple labour expenses from the inflation index and instead tie them to organisational outcomes. This shift delivers two critical strategic advantages. Firstly, it manages overall labour costs by making variable portions of compensation entirely dependent on the company’s value generation. If the business performs well, costs increase, but they are covered by the increased revenue or efficiency. If the company struggles, the variable cost component contracts, insulating the bottom line. Secondly, PFP acts as a powerful incentive mechanism, directly aligning employee effort with corporate objectives. By rewarding only performance that contributes to measurable success, PFP ensures that every additional dollar spent on wages is a dollar invested in tangible, value-adding output.

This strategic transformation of compensation philosophy is fundamentally about risk transference and efficiency. Businesses are shifting the risk of uncontrollable external economic factors such as inflation and downturn away from their fixed nature onto performance metrics that employees directly influence. This has led to a shift toward compensation packages that include a competitive base salary for stability, complemented by performance-linked variable rewards. By emphasising meritocracy and productivity gains, firms can enable employee demands for higher disposable incomes without committing to permanent, company-wide cost escalations that would compel unsustainable price increases and a subsequent loss of market share. For businesses, PFP represents an essential shift from cost maintenance i.e., trying to minimise fixed salary inflation to value creation i.e., paying for results. It allows companies to reward high-performing employees competitively while maintaining financial flexibility and protecting market viability in an economically volatile environment.

A robust pay-for-performance (PFP) structure is more than just a bonus scheme. It is a fundamental shift in how an organisation defines, measures, and rewards success. To be truly lively, illuminating and motivating, it must incorporate several essential, interconnected features.

Crystal clear goal alignment and line-of-sight

The cornerstone of any effective PFP system is the direct linkage between employee actions and organisational success.

Organisational goals: They must be explicitly, and unambiguously, tied to the company’s strategic objectives (e.g., increased revenue, market share growth, enhanced customer satisfaction, productivity gains).

Individual line-of-sight: Every employee, from the CEO to the front lines, must understand precisely how their daily work contributes to the measured metrics. If a metric feels disconnected or beyond their control, the system will be perceived as arbitrary rather than performance driven. This clarity ensures that there is a visible correlation between effort and outcome, enabling the effort to be channelled towards a specified goal/objective.

Metrics-must be measurable, objective, and balanced

The metrics used to assess performance must be beyond reproach. Fair, transparent, and difficult to manipulate.

Specific, Measurable, Achievable, Relevant, Time-bound (SMART): Metrics should follow the SMART principle. They should not be based on vague concepts like ‘good attitude’ but on quantifiable outcomes (e.g., ‘close rate,’ ‘project completion on time’, ‘customer retention score’, ‘turnaround time’).

Balance of quantity and quality: A strong PFP system avoids rewarding volume at the expense of integrity or quality. It often incorporates a ‘balanced scorecard’ approach, combining financial, operational, and behavioural/qualitative measures to prevent detrimental short-term behaviour (e.g., rewarding sales volume without penalising high customer returns and bad debts).

Differentiated and meaningful reward payouts

The core principle of PFP is that high performance warrants significantly higher rewards than average performance.

Meaningful financial payout: The payout must be large enough to influence behaviour and justify the extra effort required. A bonus that is too small becomes a ‘thank you’ gift and not a powerful incentive.

Performance differentiation: There should be a distinct spread in payouts. Top performers must earn significantly more than average performers, and low performers should earn little to nothing. This differentiation validates and reinforces exceptional effort.

Transparency, credibility, and trust

A PFP system can only be effective if it is trusted. Trust is built through uncompromised transparency.

Open calculation methodology: Employees must know exactly how their reward is calculated. They must be well informed of the formulae, the information source, and the weighting of metrics, and must be familiar with the underlying financial/operational data.

Continuous feedback and coaching: PFP must not be an annual event. It requires ongoing dialogue if it is to be effective. Managers must provide regular, constructive feedback linked to the PFP metrics so employees can adjust their efforts before the measurement period ends. Coaching, mentoring, training, and development must be made available as required. This turns the PFP system into a performance management and development tool, not just a compensation tool.

Organisational readiness and cultural fit

The PFP structure must be supported by a culture that values meritocracy and accountability.

Robust data infrastructure: The organisation must have reliable, transparent, accessible, and accurate data systems to capture and track the performance metrics. Faulty data instantly cripples credibility.

Managerial capability: Managers must be trained not only in the mechanics of the plan but also in how to coach, differentiate performance, and deliver potentially difficult feedback on the lines of ‘the bitter truth is sweeter than the sour lie’. Managers are the crucial link that makes the PFP system work.

The tone from the top

Performance Management Schemes (PMS) which anchor a PFP philosophy must not be mere bureaucratic exercises owned by the Human Resources (HR) department. To be truly effective and transformative, they must be unequivocally championed and driven from the very top of the organisation. When the CEO and the executive leadership team actively set the tone, articulate the strategic necessity, and participate visibly, the entire scheme shifts from a compliance chore to a core business imperative.

Without this executive mandate, PMS inevitably devolves into a tick-box exercise and is perceived as an HR administrative function lacking real impact or consequence. Leadership commitment ensures that performance metrics are directly aligned with strategic organisational goals, not just generic competencies. Leaders must consistently model the desired behaviours, actively use the framework to manage their own teams, and hold senior managers accountable for its effective implementation. There must be strict enforcement and both reward and punishment.

When the scheme is embraced by the C-suite, it signals its gravitas. That high performance is non-negotiable and essential for organisational survival and growth. This top-down enforcement provides the necessary resources, authority, and credibility to embed a true performance culture. It transforms PMS into a powerful tool for strategic execution, talent development, and succession planning, rather than a marginalised annual review ritual. Leadership buy-in is the catalyst that ensures every employee understands that performance management is the lifeblood of the business, not just an HR policy.

A foundation built on these features moves pay for performance schemes from complex administrative exercise to a dynamic engine that clearly communicates what matters, objectively measures its achievement, and powerfully rewards those who deliver the best results.

PFPs designed to align managers’ interests with organisational goals, often lead to a classic agency problem, which being managers ‘gaming’ the system. This behaviour, sometimes unethical or even illegal, focuses on meeting the letter of the metric rather than the spirit of the overall objective, leading to perverse outcomes that can harm the company in the long run. The core motivation is simple. Maximising personal reward, typically a commission, bonus or equity, tied directly to a specific, measurable metric. When a metric is imperfectly aligned with true value, a savvy manager will exploit the gap.

Common gaming tactics include:

Cherry-picking and timing: Managers may accelerate or delay transactions to push results into the current or next reporting period, often referred to as ‘earnings management.’ For example, a sales manager might heavily discount products at the end of a quarter to meet a sales volume target, even if the lower profit margin is detrimental overall. Alternatively, they may defer necessary ‘future seeking’ expenditures, like advertising, promotions, preventive maintenance, or training, to artificially inflate short-term profit metrics.

Resource hoarding: Incentive systems can foster an unhealthy, competitive environment where managers hoard resources, talent, or crucial information. If a bonus is tied to a unit’s specific success, a manager might refuse to lend a top performer to a struggling sister unit, even if the latter’s success would benefit the entire organisation more.

Squeezing quality for quantity: When metrics prioritise quantity (e.g., number of customers, units produced, loans processed), managers can sacrifice quality. A customer service manager, rewarded for handling a high volume of calls, might rush through interactions, leading to unresolved issues and long-term customer dissatisfaction and churn, which is a metric not included in their immediate bonus calculation.

Data manipulation and re-definition: In some cases, managers engage in direct data manipulation. This can be subtle, like adjusting reserves or subjective accounting estimates, or egregious, such as the famous case of the Wells Fargo retail managers who incentivised staff to open millions of unauthorised accounts to hit sales quotas. They were optimising the ‘number of accounts opened’ metric, regardless of whether the accounts were real or valuable to the customer.

The results of gaming are corrosive. While the manager enjoys a short-term payout, the organisation suffers from goal displacement, where local goals (the incentivised metric) supersede global goals (sustainable growth, customer loyalty, ethical conduct).

Incentive gaming erodes trust within the organisation and can lead to a toxic, short-term-focused culture. Alarmingly, it encourages excessive risk-taking, as seen in the financial sector where bonus schemes tied to short-term profits encouraged managers to take on high-risk, high-reward ventures that destabilised their firms and the global economy.

To counteract this, organisations must move beyond single, easily gamed metrics. Effective schemes require a balance which recognises long-term, qualitative, and team-based objectives, making it significantly harder to game without delivering genuine, sustainable value.

In closing, performance-based compensation is vital. It tangibly rewards strategic success, drives accountability, and attracts top talent. It powerfully reinforces the symbiotic link between individual effort and organisational goals. Pay must reflect contribution. Without this critical, results-focused linkage, motivation stagnates and excellence remains unrewarded. Reward what truly matters.

It was second time lucky for the ruling National People’s Power (NPP) led Colombo Municipal Council (CMC) when at the second attempt, the Council’s Budget passed by a thin majority. The Budget was passed yesterday with 58 members voting in favour, while 56 voted against. Two members abstained from voting. The CMC Budget was put to a second vote after its first try in getting the Budget approved on 22 December failed with 60 voting against and 57for it. A gap of a few days seems to have worked magic for the NPP and helped it get the requisite numbers.

While the CMC is the icing on the cake of the local authorities in the county., since the elections were held in May 2025 to the local bodies, many have been mired in controversy with allegations of corruption, intimidation and arm twisting in a bid for the NPP to secure a majority in councils which it does not have a majority. Opposition members too have been causing chaos in some councils.

Firstly it was at the time that the Mayors or chairpersons of the councils were being elected. There were obviously deals done and though the NPP managed to get their persons elected to head a majority of the councils, many of these same councils have failed to get their Budgets passed.

The ugly politics being played out through the local bodies is clearly evident from the chaos that ensured in the Galle MC on Tuesday. Five members of the GMC were arrested in connection with the skirmishes at the Council meeting. The arrested members were those representing the United National Party (UNP), the Samagi Jana Balawegaya (SJB) and the Sri Lanka Podujana Peramuna (SLPP).

The Galle MC Budget was first presented on 15 December and it was defeated by a majority of two votes A second attempt was made on 24 December and here there were 21 votes in favour of the Budget and 15 against. Opposition councillors caused some ugly scenes alleging fraud in the vote count. Similar scenes were reported on Tuesday leading to the arrests.

Local authorities are bodies where all have to work in an apolitical manner if any progress is to be expected, but ever since the elections they have become place of political acrimony . There has been fisticuffs inside councils, officials have been threatened and intimated and the councils have had to adjourn on many days due to such scenes.

This does not auger well for the county where political infighting has cost the country heavily. The NPP no doubt wants to save face by ensuring that at least in the councils in which had a majority initially, they can get their Budgets passed but that hasn’t always been easy. The Opposition too is eager to assert themselves as collectively Opposition parties have a majority in many councils; as they say, politics makes strange bed fellows and this has been the case in many councils.

Amidst all the drama, President Anura Kumara Dissanayake has appointed a Presidential Commission of Inquiry to investigate, examine, and report on alleged corruption and irregularities at the Colombo Municipal Council (CMC).

Former High Court Judge Piyasena Ranasinghe, Chartered Accountant E. R. M. S. H. Ekanayake, and former Senior Superintendent of Police D. S. Wickramasinghe have been appointed to investigate alleged acts of corruption, fraud, criminal breach of trust, and criminal misappropriation of property that are said to have taken place at the Colombo Municipal Council during the period from 2010 to 2025.

This coming on the heels of the NPP’s woes at the CMC, no doubt arises many questions. Is this commission meant to intimidate opposition members? Or is it a genuine attempt to expose corruption?

On the face of it does looks like the President is wielding his powers to keep the Opposition members from jumping too high. Given that many in Opposition have too many skeletons in their cupboards, they would want them to remain hidden. Only time will tell if the Opposition will be intimated or continue to take on the Government.

The Colombo stock market yesterday ended 2025 on the up with the ASPI gaining 42% (down from 49.66% in 2024) and generating Rs. 2.4 trillion in value during the year.

During the year, market capitalisation increased by 41.67%, gaining nearly Rs. 2.4 trillion in value to Rs. 8.07 trillion. The ASPI gained 42% during the year or 6,679.10 points and the S and P SL20 gained 26.6% or 1,295.28 points.

This is the third highest ASPI gain in six years since hitting 80.48% in 2021.

Yesterday, the ASPI closed up 0.79% or 178.42 points to 22,624.31 and the S and P SL20 gained 0.75% or 46.03 points to 6,157.38.

Turnover was over Rs. 4.6 billion in nearly 122.8 million shares traded. Foreigners were net sellers with a net outflow of Rs. 103.3 million.

First Capital Research said that on the final trading day of 2025, the Colombo Bourse closed higher, driven by early buying interest, though late profit-taking slightly trimmed gains toward the close. Total market turnover for the year amounted to Rs. 1.2 trillion with average daily turnover standing at Rs. 5.2 billion.

During the year, three companies were listed on the CSE through IPOs, namely CALH, JFP and WTS.

Top positive contributors to the ASPI yesterday were JKH, SFCL, ACL, SAMP and HASU. HNW participation remained moderate, while retail investors led trading activity during the day. Notable interest was observed in construction sector counters, where few counters recorded the highest turnovers for the day. The Capital Goods sector accounted for 46% of total turnover, while the Food Beverage and Tobacco, and Banking sectors contributed a combined 20%.

The Cabinet of Ministers on Monday approved a series of measures aimed at minimising plastic usage and improving waste management in the highly sensitive Sri Paada ecosystem during the six-month annual pilgrimage season, which begins in December. Recognising the area’s ecological significance under the Flora and Fauna Protection Ordinance, the Government has tasked the Environment Ministry with implementing strict regulations on the use and disposal of plastics and polythene within the zone.

Under the new rules, the sale or carrying of high-density polyethylene wrappers, shopping bags, sachet packets, expanded polystyrene products, single-use cups, plates, and cutlery will be prohibited for pilgrims and visitors. In addition, carrying single-use plastic water bottles or soft drink bottles under one litre is banned, and the disposal of any polythene covers, food items, pharmaceutical products, or other goods within the protected area is strictly forbidden.

Addressing the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the move was taken after a decades of consultation and based on studies conducted by the Environment Ministry.

Business owners operating within the environmentally sensitive zone will be responsible for managing all waste generated from their food or merchandise sales, including transporting collected polythene and plastic waste to urban councils or Pradeshiya Sabhas for final disposal, away from the high-risk area. In addition, pollution of water fountains, waterways, and other natural resources with plastic waste will be prohibited, ensuring the protection of Sri Paada’s delicate ecosystem.

These measures, set to take effect from the 2025 pilgrimage season, are designed to preserve the natural environment while maintaining sustainable pilgrimage practices.

Former Sri Lanka Under-19 World Cup cricketer Akshu Fernando has passed away at the age of 34 in a career and life cut tragically short.

Fernando, who represented Sri Lanka at the 2010 Under-19 Cricket World Cup in New Zealand, had been in a coma following a devastating accident at an unprotected railway crossing near Mount Lavinia beach on 28 December, 2018. The incident occurred as he was returning from a team running session held at the beach.

At the time of the accident, Fernando was regarded as one of the most promising young cricketers of his generation. He was part of the same Sri Lanka Under-19 squad as Dhanushka Gunathilaka, Bhanuka Rajapaksa, and Kithruwan Vithanage, several of whom later went on to represent the national team at senior level.

Fernando was a standout performer at the 2010 Under-19 World Cup semi-final against Australia in Lincoln on 27 January scoring 52 in a match where he was Sri Lanka’s most successful batsman.

A product of St. Peter’s College, Colombo, Fernando enjoyed an exceptional school cricket career, captaining the Under-13, Under-15 and Under-17 teams, and vice-captain of the Under-19 side. At club level, he represented Colts, Panadura SC, Chilaw Marians CC, and Ragama CC.

International cricket commentator Roshan Abeysinghe for whose club Ragama CC, Fernando last played said: ‘Just heard the sad news that Akshu Fernando has passed away. He was truly a wonderful young man whose promising career was cut short by a cruel accident. A quality player for his school and his final club Ragama. It’s a sad day for all of us who knew him. He will be remembered for the rest of our lives.’

Bank of Ceylon (BOC) has contributed Rs. 500 million to the Government’s ‘Rebuilding Sri Lanka’ Fund to support communities affected by Cyclone Ditwah. The contribution, which was officially handed over, reaffirming the bank’s commitment to national recovery efforts.

Cyclone Ditwah, which struck Sri Lanka in late November 2025 during the northeast monsoon, caused widespread devastation across the island, affecting over two million people and severely damaging homes, infrastructure, livelihoods, and essential services.

The scale of the disaster underscored the need for strong institutional support to accelerate recovery and rebuilding. As bankers to the nation, Bank of Ceylon serves as the key banking channel for the Government’s disaster relief initiatives.

Foreign contributors were facilitated through the Bank’s Internet Payment Gateway (IPG), allowing seamless online donations. Bank of Ceylon’s UK Ltd. and Chennai branches actively facilitated overseas contributions from Friends of Sri Lanka, while creating pathways for donations in coordination with foreign High Commissions.

In addition, the Maldives Branch played a key role in facilitating donors in sending donations to Sri Lanka. BOC also played a pivotal role in supporting the nation during the aftermath of the Easter attack, the economic downturn and the fuel crisis.

In addition to the financial contribution, BOC along with the staff members immediately provided dry rations and essential items valued at Rs. 50 million to affected communities across all the affected provinces. With a customer base of over 16 million, many of whom were impacted by the disaster, Bank of Ceylon’s contribution reflects its strong corporate social responsibility, sustainability focus, and commitment to supporting national resilience and long term economic recovery.

Seylan Bank’s Islamic Banking Unit has recently extended its support to OrphanCare Trust, contributing Rs. 1 million from its charity fund to strengthen the organisation’s ongoing efforts in supporting orphaned youth as they transition into independent life.

The donation was handed over at a simple ceremony attended by senior representatives of Seylan Bank and the Head of OrphanCare Trust, Azad Zaheed and Deputy Head, Marshad Barry. The contribution is part of Seylan Islamic Banking’s continued commitment to uplifting underprivileged communities and supporting initiatives that create long-term social impact.

Seylan Bank’s COO Ranil Dissanayake said, ‘At Seylan Islamic Banking, we recognise the importance of sustainable giving, supporting projects that empower individuals to build a better future for themselves. OrphanCare’s focus on helping youth after they leave institutional care aligns perfectly with our principles of compassion, equity, and community development.’

Established in 2019, OrphanCare Trust is an independent trust dedicated to addressing a vital yet often overlooked need, ensuring the wellbeing of orphans once they reach 18 years of age and are required to leave institutional childcare. Guided by Article 2 of the United Nations Convention on the Rights of the Child, the Trust operates without discrimination of race, religion, or background, offering care and guidance to orphans across Sri Lanka.

Currently, OrphanCare supports children from over 90 childcare homes, including six orphanages within the Western Province alone. Since inception, the Trust has disbursed over Rs.75 million across 21 rounds of funding, benefitting more than 3,100 orphans nationwide. Beyond providing immediate financial aid, its mission focuses on ensuring that orphaned youth are not left without direction once they exit institutional care, helping them secure education, employment, and a pathway to self-sufficiency.

As an initiative that transcends boundaries of religion and ethnicity, OrphanCare Trust continues to embody the spirit of unity and compassion among Sri Lankans, ensuring that every orphaned child has a chance at a dignified, independent life.

The contribution reflects Seylan Islamic Banking’s broader commitment to supporting charitable initiatives that go beyond immediate relief, focusing instead on sustainable empowerment and inclusion.

A refreshing 31,557,600 seconds in 2026 are with us. The sparkling spirit of a new year invites us not only to have brand new thoughts but to convert them into grand actions. As usual, people tend to have New Year resolutions. My suggestion is to go beyond scant resolutions, to have specific reinforcements. As an appetiser for a productive new year, I would like to share twenty-six thoughts for 2026 as essentials for excellence, especially with the Sri Lankan managers in mind.

Efficient

We all complain about lack of time. Even though there are seminars, workshops, trainings, and lectures on ‘time management,’ we really cannot manage time. It is finite and fixed. Instead, what we can do is to ‘manage ourselves’ in getting the best out of the given limited time. Only way to do that is to be efficient in our tasks. It involves minimising the wastages, reducing the defects, curtailing the deviations etc. Let us be efficient in the year 2026.

Effective

Being efficient is not enough. We can efficiently climb a ladder placed against the wrong wall. Effectiveness is results related. It deals with the outputs and the outcomes. That is where we need to begin with the end in mind. The mistake we make sometimes is trying to be super-duper efficient, losing track of the larger goal. Let us be effective in the year 2026.

Empathic

As we know, empathy is getting into other’s shoes and walking like them. In other words, it means having the ability to look at a problem or an issue from the other’s frame of view. Sri Lankan managers and administrators can improve vastly on this. Rather than jumping to conclusions merely looking at one side of the story, a mature broad approach of being empathic is required. Let us be empathic in the year 2026.

Energetic

We need to be ‘corporate athletes’ in maintaining a healthy mind-body balance. Energy flows out not by consuming more ‘energy drinks’ but committing to exercise regularly. Unfortunately, we see quite the contrary in the corporate world, where most of the things are remote-controlled. Finding quality time for physical exercises on a regular basis will be one sure cure for physical inactivity. Having a healthy dietary pattern, in opting to be fit than fat, is another vital need. Let us be energetic in the year 2026.

Enthusiastic

Happy employees are productive employees. That is what the research says. Interestingly, that is why some enthusiastic enterprises have resorted to measure ‘laughs per hour.’ There are ground realities one cannot ignore. Either one has to find the work he/she loves to do or love the work he/she has to do. Having a positive approach to work is an absolute must. As Theodore Roosevelt said, ‘do what you can, with what you have, wherever you are.’ Let us be enthusiastic in the year 2026.

Envision

‘Dare to dream, dare to act, dare to fail, dare to succeed.’ So goes an old saying. Everything begins with envisioning. As Walt Disney said, if you can dream it, you can deliver it. Unfortunately, we see more ‘day dreams’ in Sri Lankan workplaces, especially after lunch. The need for the hour is to be more growth-oriented in terms of working towards long term goals. Let us envision more in the year 2026.

Enhance

We need to enhance our knowledge and skills. With the internet as a vast ocean of knowledge offering a variety of informal learning approaches, learning has become a part and parcel of our lives. Unfortunately, we visit the internet to find ‘figures’ instead of ‘facts and figures.’ Sharpening ourselves with cutting-edge knowledge is an absolute must in facing competition. As Socrates said a long time ago, we learn from ‘the womb to the tomb.’ Let us enhance ourselves in the year 2026.

Engage

Employee engagement has already become a buzz word in the business circles. It captures the essence of employees’ head, hands, and heart involvement in work. In brief, it captures affective (feeling), cognitive (thinking) and behavioural (acting) dimensions of an employee. We need to engage more in order to excel. Let us engage more in the year 2026.

Explore

This is essentially about being creative, in thinking ‘out of the box.’ It reminds me of what our veteran writer Kumaratunga Munidasa said a long time ago. ‘A nation without innovation will not prosper, but will lie lamenting, being unable to beg.’ Innovation has paved the way for many countries to succeed in becoming globally competitive. Where are we with regard to innovation? How many new patents do Sri Lankans register annually? Nanotechnology and biotechnology can be sited as promising areas where innovation has begun to yield dividends. Let us explore in the year 2026.

Empower

As Lao Tsu said a long time ago, great leaders are ‘leader breeders.’ Such a transformation can only be possible through empowerment. It involves, on the one hand, delegation, assigning tasks to others to handle, whilst being accountable. On the other hand, it involves development. The fundamental mistake we make is to simply delegate tasks without developing the team. Let us empower in the year 2026.

This is all about continuation. We start things with a big bang and discontinue half-way through. Sustainability has become a critical factor in the midst of business failures. Chaotic weather patterns across the globe are a grim reminder that eco-friendly practices of work need a lot more attention. What matters is not only profits and people, but the planet as well with an overarching purpose. Let us endure in the year 2026.

Embrace

In a rapidly changing well-connected world, we need to embrace best practices, and perhaps the ‘next’ practices. Take recruitment for example. Rather than having an interview by a panel of senior members who have no idea about what real interviewing is all about, the time has come to move towards professionalism. There are new techniques to conduct behavioural interviews. Required competencies for a job against actual competencies of a candidate can be accessed through a well-designed assessment centre. The starting point is to acknowledge the need to change in appropriately adapting the new practices. Let us embrace more in 2026.

Enrich

It is a broad term capturing the physical, mental, emotional, social, and spiritual facets of life. We need enrichment in a balanced manner on all above fronts. Sadly, but surely, what we see in the world is quite the contrary. There is an imbalance with the mad rush for material acquisition. As I saw in a poster somewhere, ‘we gain wealth by sacrificing our health and we regain health by spending our wealth.’ Let us enrich more in 2026.

Engross

It refers to getting involved totally, with complete participation. It differs from engagement to the extent where you need to be holistic and be willing to capture the fullness of a situation. Half-hearted, half-baked approaches with shabbily completing tasks are quite opposite. The eastern term, mindfulness aptly captures what you need to do fully in living in the moment. Let us engross more in meaningful activities in 2026.

Erase

When Nelson Mandela was released from 27 years of rigorous imprisonment, the first thing he did was to forgive his enemies. Then he said, ‘Reconciliation begins now.’ It invites us to forgive and forget. In brief, it refers to the erasing of negative memories. The sooner we erase the negative memories, yet retaining the lessons learnt, the better it is for us to experience inner freedom. Let us erase the past negativities in 2026.

Elevate

We need to continuously elevate our standards in order to stay competitive. It is voluntarily raising the bar. ‘Kaisen’ invites us to continuously improve in challenging our past performance and raising the targets for future performance. As the famous quote goes, ‘Aim for the sky and you’ll reach the ceiling; Aim for the ceiling and you’ll stay on the floor.’ Let us elevate ourselves in 2026.

Emancipate

This is comparatively a subtle aspect. It deals with practicing values. The numerous stories we heard ranging from global credit crunch to Golden Key chaos, call for the need for ethicality. It is not achieving short-term gains ‘either by hook or by crook’ but something much deeper, grounded on solid principles. Ethics is difficult to define in a precise way. In a general sense, ethics is the code of moral principles and values that governs the behavours of a person or a group with respect to what is right or what is wrong. ‘Do unto others as you would have them do unto you,’ says the golden rule of ethics. Let us emancipate in 2026.

Enthrall

This is the logical extension of emancipation. You radiate ‘positive energy’ to energise and engage others. Leaders should enthrall their team members towards a clear purpose so that they become committed collaborators. It is the capacity to persuade others for a worthy cause. Let us immensely enthrall in 2026.

Engulf

There is a growing optimism about a better political culture with higher accountability at all levels, in moving beyond conventional power boundaries. Engulfing involves complete covering of something or someone. Integrity should engulf Sri Lankan institutions where corruption has been rampant, with a clean slate of transparency through professionalism. Let us positively engulf ourselves in 2026.

Exclaim

I thought this is something we need especially in battling with multiple crises. Having positive vibrations of resilience is required on all fronts. It is to show a positive and constructive response with confidence to a challenging economic reality. It is also responding to VUCA 1.0 reality (Volatility, Uncertainty, Complexity, and Ambiguity) with VUCA 2.0 (Vision, Understanding, Confidence and Agility). Let us exclaim our resilience, recovery, and revival in 2026.eavour

The world has shifted from VUCA to BANI as Jamais Cascio, an American anthropologist presented. Living in a world with BANI 1.0 illusions, (Brittle, Anxious, No-linear, and Incomprehensible) we need BANI 2.0 ignitions (Bold, Assertive, Neutral, and Innovative) by individuals and institutions alike. Let us have such an endeavour in 2026.

Exalt

We need to exalt our mother Lanka. As an island of ingenuity, it is abundant with natural beauty and nurtured brains. With bright leadership, it can be brilliantly positioned. Let us exalt our beloved Sri Lanka through our words and deeds in 2026.

Enjoy

‘The secret of life is enjoying the passage of time’, so said James Taylor. It may be a blissful road or a bumpy ride. The mindset of accepting reality as it is in facing life’s challenges with confidence will enable us to enjoy life more. It is a choice in front of us to live one day at a time. We need to dream as if we will live for hundred years but need to live as if today is our last day. Let us enjoy the ‘roller coaster ride’ ahead of us in 2026.

Exemplify

This is where ‘practicing what you preach’ and ‘walking the talk’ matter most. The whole nation awaits a new political culture where the leaders set themselves as an example of simplicity, transparency, and integrity. When it happens, the standards become high for leaders at all levels. Rather than cursing the darkness of the absence of it, we need to light a candle in practicing our values in producing value. Let us exemplify ourselves in 2026.

Entrust

This is about assigning the responsibility for doing something to a trustworthy someone. It highlights the benefit of going beyond mere delegation for one to focus on more strategic aspects. ‘If you give trust, it will be given back to you; delegation is a result of this trust.’ That is how Stephen R. Covey described the beauty of entrusting. Let us entrust others more in 2026.

Excel

This is the culmination of all above. Excellence is all about being exceptionally good. When applied to enterprises, it involves exceptional achievements in a consistent manner. ‘We are what we repeatedly do. Excellence, then, is not an act but a habit.’ So said Aristotle a long time ago, which has much relevance for today and tomorrow.

The dawn of 2026 offers us another opportunity to have a fresh look at our lives. Embracing the twenty-six thoughts for a terrific ‘twenty-twenty six’ will ensure the exceeding of expectations with excellence as essence. May 2026 be a year of excellence for you, as an individual, as an interactive team member, as an institutional employee, above all, as an integral player in an island of ingenuity. At a time when our resilient nation is recovering from devastating Ditwah, we have a collective responsibility to contribute. Let us excel in 2026.

The Government has released the National Electricity Policy of Sri Lanka for public comment on or before 9 January 2026, setting out a binding framework to reform pricing, strengthen regulation and accelerate renewable energy, while reaffirming cost-reflective tariffs and the financial sustainability of the power sector.

Issued by the Ministry of Energy under the amended Sri Lanka Electricity Act, the policy marks a decisive shift away from administratively controlled electricity pricing, placing long-term system cost, security of supply and regulatory discipline at the centre of electricity sector governance.

The policy states that electricity must be supplied at the lowest long-term system cost, subject to security and reliability constraints, while ensuring utilities remain financially viable. It affirms that future tariffs must reflect generation, transmission and distribution costs, with subsidies permitted only if transparent and targeted, rather than embedded through cross-subsidisation.

While aggregate tariffs will be cost-reflective, the policy allows limited lifeline support for vulnerable consumers, to be implemented through explicit mechanisms approved by the regulator.

The framework also formalises the post-unbundling structure of the electricity sector, with separate entities for generation, transmission, distribution and system operations. The National System Operator is assigned a strengthened role in security-constrained economic dispatch and long-term planning, aimed at minimising generation costs while safeguarding grid stability.

Renewable energy expansion is positioned as a central pillar of the policy, with priority given to solar, wind, hydro, and biomass and waste-to-energy projects. However, the document makes clear that renewable integration will be governed by system limits, grid stability considerations and competitive procurement, signalling a move away from ad hoc project approvals.

The policy also mandates accelerated digitalisation of the electricity system, including smart metering, automated meter reading, grid monitoring and centralised data platforms, identifying loss reduction and demand-side management as critical to containing future tariff pressures.

Appendix A of the policy introduces a National Tariff Policy that tightens regulatory oversight of costs, explicitly listing allowable expenses such as depreciation, financing costs and operations and maintenance, while requiring efficiency benchmarks to be enforced. Inefficiencies, the policy notes, are to be addressed through regulatory scrutiny rather than tariff adjustments.

The document sets out phased implementation timelines from 2026 onwards, covering competitive procurement of new generation, review of feed-in tariffs, application of new multi-year tariff methodologies and full operationalisation of the system operator’s planning and dispatch functions.

Energy reforms is a key component of the ongoing International Monetary Fund Extended Fund Facility program with Sri Lanka.

Last October when the IMF review team last visited the country for the fifth review under the EFF program (the conclusion of which has been postponed to early 2026 on account of Ditwah), it reiterated the importance of sustaining momentum on energy sector reforms, particularly the unbundling of the Ceylon Electricity Board and the preservation of cost-reflective electricity pricing, as part of Sri Lanka’s Extended Fund Facility program.

IMF Mission Chief Evan Papageorgiou told reporters in Colombo that the Fund is closely monitoring developments around the unbundling of the CEB and the broader transformation the energy sector is expected to undergo from 2026 onwards. He described the reform as a critical step toward improving transparency and operational efficiency, while noting that several technical and implementation details remain to be clarified.

Papageorgiou stressed that maintaining cost-recovery pricing remains a continuous structural benchmark under the IMF-supported program, forming a core pillar of the Extended Fund Facility. He said this is essential to ensure that the CEB or its successor entities do not incur financial losses that could ultimately become liabilities for the State and taxpayers.

He added that cost-reflective pricing helps contain fiscal risks and supports long-term economic stability by ensuring that electricity utilities operate on commercial principles and make financially sound decisions. Stable and predictable tariff-setting processes, he said, are also important in paving the way for lower electricity prices over time and broader economic benefits.

As part of the fifth review of the IMF program, the Fund was also evaluating the CEB’s latest tariff submission to the Public Utilities Commission of Sri Lanka, and assess compliance with the end-November structural benchmark relating to the review of the electricity tariff methodology.

Sri Lanka Rugby (SLR) has taken a significant step forward in strengthening the foundations of the game with a renewed focus on long-term development, governance, and performance enhancement. Recognising the evolving demands of modern rugby, SLR’s latest initiative reflects a clear intent to build sustainability while restoring confidence among stakeholders across the local rugby fraternity.

A key pillar of this initiative is the emphasis on improving standards at all levels of the game. From elite competitions to grassroots structures, SLR has reaffirmed its commitment to creating a more structured and accountable rugby ecosystem. Enhanced administrative processes, clearer competition frameworks, and closer engagement with clubs are central to this strategy, ensuring that domestic rugby progresses with greater transparency and consistency.

SLR has also underlined the importance of safeguarding the integrity of the sport. Stronger regulatory mechanisms, clearer communication, and proactive stakeholder engagement are being prioritised to minimise disputes and foster mutual respect between administrators, players, officials, and supporters. Such measures are vital in ensuring that rugby remains a sport built on values of fairness, respect, and sportsmanship.

As Sri Lanka Rugby navigates a challenging yet promising phase, this initiative signals a positive intent to move the game forward. While execution will ultimately define success, the direction taken by SLR demonstrates a willingness to listen, adapt, and invest in the future. If sustained with consistency and accountability, this initiative could mark an important turning point for Sri Lankan rugby.

SLR Exco has approved a National Referee Development plan, 15 referees from Tri Forces and another 16 selected through recently conducted interviews. SLR Elite panel of referees too will be set up plus for the Super Round two referees will be in through Asian Rugby support to have fairness on all the super round encounters. All these approval will be made in the near future through the Council Meetings.