Category: Daily Financial Times

President and Finance Minister Anura Kumara Dissanayake visited Sri Lanka Customs, the Inland Revenue Department and the Excise Department yesterday to commend record-breaking performances and to deliver a clear message: sustained revenue mobilisation, strict enforcement and institutional integrity are now central to economic stability.

President Dissanayake visited the three main revenue agencies of the Government-Sri Lanka Customs, the Inland Revenue Department, and the Excise Department-to commend their record-breaking performances and discuss their plans for 2026 and beyond.

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, according to Sri Lanka Customs Director General S. P. Arukgoda, who noted that the Department surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed State revenue and contributing to economic and social stability, the President expressed his appreciation to all Customs employees for their commitment and service.

Emphasising that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. He also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the Government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that economic stability has since been restored through the achievement of revenue targets, a capability that has also been critical in responding to recent disaster situations.

A comprehensive discussion was also held on Sri Lanka Customs’ overall performance in 2025 and its new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars-revenue collection, trade facilitation, social protection and institutional development-and the President inquired into the progress achieved under each area.

It was also revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as plans to modernise cargo inspection systems.

The discussions further covered Sri Lanka Customs’ digitalisation programme planned for 2026, along with issues relating to recruitment, promotions, training, and staff salaries and allowances.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the need for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while remaining prepared to face emerging challenges.

At the Inland Revenue Department, President Dissanayake was briefed on how the agency collected Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represented a surplus of Rs. 33 billion over the annual revenue target and a 15% increase compared with the previous year, according to Inland Revenue Commissioner – General Rukdevi Fernando.

Marking the first occasion in the Department’s 93-year history that a President has visited it, President Dissanayake attended a meeting with staff to review progress in 2025 and discuss plans for 2026.

He expressed appreciation to all officers and staff for surpassing the Government’s revenue expectations and urged them to continue working towards a common objective to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era of a tax culture shaped by personal, familial or political affiliations has come to an end. He stressed that the law will be enforced without hesitation, regardless of status, against those who attempt to evade taxes.

The President also noted that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the public. Accordingly, the Government is focusing on improving essential public services, transforming the transport system, and allocating adequate resources for the development of the education and health sectors.

The President also highlighted the need for a targeted program to strengthen tax collection by improving tax literacy, simplifying the tax system and addressing staff shortages.

Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind the achievement.

She added that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programs aimed at enhancing tax compliance and broadening the tax base.

In addition, she said plans for 2026 include expanding third-party data sharing, strengthening investigations into domestic and overseas assets, taking over the RAMIS system, reinforcing risk-based auditing, introducing e-invoicing, adopting modern technology for tax administration and enhancing tax ethics.

At the Excise Department, President Dissanayake commended the agency for surpassing its revenue targets after many years, noting that the commitment of officers and a corruption-free operational framework contributed to the achievement.

The Excise Department is on track to exceed its 2025 revenue target of Rs. 227.4 billion, with expected revenue reaching Rs. 231.3 billion. This marks the first time in its history that the Department has achieved 102% of its revenue target.

The President noted that the national economy depends on the level of State revenue generated, stressing that a collapse in State revenue would inevitably lead to an economic collapse. He pointed out that the country faced severe consequences during 2020-2021 due to a sharp decline in State revenue.

The President’s attention was also drawn to challenges faced by the Excise Department, including issues related to vehicles and buildings. He emphasised the need to reach internal consensus and to resolve, without delay, issues arising from vacancies in executive positions and related appointments.

The meeting further reviewed progress on amendments to the Excise Ordinance, as well as the status of illicit liquor and narcotics detection operations carried out in 2025. Commissioner General of Excise M.B.N.A. Premarathna, along with senior officials and members of the Excise Department staff, were present at the meeting.

The following are excerpts of an interview with United Nations Industrial Development Organisation’s (UNIDO) International Regulatory Reform Expert Delia Rodrigo and and National Quality Expert Sumathy Rajasingham who are shaping the adoption of Regulatory Impact Assessment (RIA) in Sri Lanka under the aegis of the Ministry of Science and Technology and the support of the European Union. In this interview they share insights from their expertise to answer questions on RIA’s core, its benefits, global lessons, challenges, and the path ahead.

Most people rarely think about the rules that frame their daily lives, yet every product we buy, every service we rely on, and every investment that enters the country is shaped by regulation. When rules are thoughtfully designed, they protect the public, give firms clarity, and keep competition fair. When rules are pushed through without evidence or engagement, the results can be costly, unpredictable, and difficult to enforce. Good economies do not leave this to chance but invest in the craft of making rules well.

Sri Lanka is now steering in this direction and is taking steps to improve how regulations are made. At the centre of this shift is RIA or Regulatory Impact Assessment. RIA is not a slogan or a box to be ticked, but a disciplined way to choose between the best options. The United Nations Industrial Development Organisation’s (UNIDO) International Regulatory Reform Expert Delia Rodrigo explains, ‘RIA is a process to improve decision making.’ It helps regulators assess the likely impacts of interventions by identifying the best way to address a problem through a qualitative or quantitative comparison of costs and benefits among options. That requires searching for relevant data, testing assumptions, and engaging with the people who will live with the outcome. The effect is practical and powerful: decision makers think before they act, they set out the reasons for their choice, and they invite scrutiny that ultimately strengthens the rule.

Sri Lanka’s renewed push did not start from zero. The first introduction came in 2018, when the Consumer Affairs Authority hosted an awareness workshop. When leadership shifted, momentum faded. The idea remained dormant until 2025, when the Ministry of Science and Technology (MoST) allocated national quality infrastructure funds to revive the adoption of RIA. That decision flagged off a national workshop, bringing together 23 ministries and regulatory agencies. The response was immediate with 31 applications to pilot RIA. Eight have been selected and are now moving forward with technical support from UNIDO. It is the most active RIA program Sri Lanka has attempted, and for a country repositioning for recovery, the stakes are real.

Q: What does RIA change in the regulatory mindset?

Delia Rodrigo: RIA makes decision making structured. We begin with the problem and consider different options, not just what tradition suggests. We compare costs and benefits and engage relevant stakeholders before choosing. This increases transparency and strengthens evidence-based decisions. It also brings predictability because the reasons are documented and open to review.

Sumathy Rajasingham: Our traditional mindset is control and compliance. We issue rules and demand adherence. What is often missing is a systematic look at effectiveness. Even well-intended regulations can place a heavy burden on businesses, citizens and Government efficiency. RIA begins to shift that culture towards regulation for impact rather than regulation for control.

Q: Why is this shift important now?

Sumathy Rajasingham: Sri Lanka is working to stabilise the economy, restore confidence and improve competitiveness. A system where proposals advance without adequate analysis or consultation creates uncertainty. That can raise costs and slow investment. RIA encourages social participation, informs society about Government intentions and explains the rationale behind actions. That builds trust and gives firms clearer signals to plan.

Q: What has been achieved so far under the current push?

Sumathy Rajasingham: The MoST organised a two-day workshop that drew interest from 23 ministries and regulatory agencies. We received 31 applications for RIA pilot projects, of which proposals from IRCSL, CAA, CEA, NAQDA, NDDCB, SLTB, CDA and MUSSD were selected. These agencies are now preparing full RIA reports with technical support from UNIDO. The interest is promising. The next step is to translate that interest into a mindset where RIA is routine, not novel.

Q: Globally, what does good RIA practice look like?

Delia Rodrigo: RIA is widely used around the world. Systems vary according to legal, administrative, economic and political conditions, but good practice is consistent. There must be strong political leadership, a mandatory requirement for regulators to conduct RIA, compulsory public consultation, and proper oversight to ensure the quality of the RIAs. Without these elements, RIA risks staying at the surface.

Q: What challenges do countries typically face when getting started?

Delia Rodrigo: There are several. Limited available data and technical capacity to quantify costs and benefits. Weak stakeholder engagement mechanisms and mistrust between regulators and the private sector. Administrative resistance and regulatory capture. Lack of coordination at the centre of Government. These are not unique to Sri Lanka, but they underline the need for deliberate capacity building.

Q: How does RIA connect to trade and investor confidence?

Delia Rodrigo: RIA aligns regulation with international expectations. When measures are proportionate, evidence-based and transparent, exporters face fewer technical barriers in markets such as the EU. Compliance becomes easier to plan, which reduces risk. For investors, especially during recovery, clarity about why regulations exist and how they will be applied is essential. It lowers uncertainty and encourages investment in sectors where Sri Lanka seeks to grow.

Q: What is the road ahead for Sri Lanka if this momentum continues?

Sumathy Rajasingham: The reports from the eight pilot agencies will be important early proof. They will show stakeholders how RIA improves the design of regulation. The next step is to mainstream RIA within the wider national quality infrastructure and through a proposed National Quality Council that can monitor whether RIA is conducted when new regulations are drafted. That is how we ensure sustainability. Once RIA is integrated into policymaking, it becomes part of how Government works rather than a separate, temporary exercise.

Q: What would you say to leaders who are unsure about the value?

Delia Rodrigo: RIA keeps governments from acting on instinct when evidence is available. It helps avoid costly mistakes, builds public trust and supports competitiveness. It offers a disciplined way to make decisions that affect the economy and society. For Sri Lanka, this is about growth that is more resilient and governance that is more credible.

Delia Rodrigo is an international regulatory reform specialist with over 20 years of experience across the World Bank and UNIDO. She brings a global lens. Sumathy Rajasingham is a National Quality Infrastructure Specialist at UNIDO who focuses on Sri Lanka’s quality infrastructure, drawing from her work on standards and conformity assessment.

Continuity, credibility and a strategic path to Sri Lanka’s recovery

Sri Lanka’s journey toward economic stabilisation has been repeatedly interrupted by external shocks such as natural disasters, global health emergencies, and macroeconomic crises. The devastation caused by Cyclone Ditwah is the latest reminder of the country’s vulnerability to climate-related risks at a time when fiscal space remains constrained. Against this backdrop, India’s announcement of a $ 450 million reconstruction assistance package represents not merely emergency support, but the continuation of a long-standing and structured partnership that has consistently underpinned Sri Lanka’s recovery during national crises.

From immediate relief to structured reconstruction

India’s response to Cyclone Ditwah followed a familiar and well-tested pattern. Immediate humanitarian assistance was deployed under Operation Sagar Bandhu, launched on the day the cyclone made landfall. Indian naval vessels delivered relief supplies, Indian Air Force helicopters conducted aerial rescue and logistics operations for over two weeks, and disaster response teams and medical units provided life-saving support across affected regions.

However, the more consequential intervention, particularly from an economic and fiscal standpoint, is the $450 million reconstruction package, formally conveyed by India’s External Affairs Minister Dr S. Jaishankar during high-level engagements in Colombo with President Anura Kumar Dissanayake and Foreign Minister Vijitha Herath.

The package comprises:

$ 350 million in concessional Lines of Credit and

$100 million in direct grants

It is being finalised in close consultation with the Sri Lankan Government to ensure alignment with national reconstruction priorities.

A familiar role: India as Sri Lanka’s first responder in times of crisis

India’s role following Cyclone Ditwah is not an isolated act of goodwill. It reflects a consistent pattern of first-responder engagement that Sri Lanka has experienced during its most challenging moments over the past two decades.

Following the 2004 Indian Ocean Tsunami, India was among the earliest responders, deploying naval and medical assets and later undertaking one of the largest grant-based housing reconstruction programmes in Sri Lanka, delivering tens of thousands of tsunami-resilient homes along the coast.

In the post-conflict period after 2009 India supported rehabilitation in the Northern and Eastern Provinces, focusing on housing for internally displaced persons, restoration of railway connectivity and revival of livelihood infrastructure, critical for reintegrating regional economies into the national framework.

During the COVID-19 pandemic, India’s assistance again proved decisive. Vaccine supplies, emergency medical equipment, oxygen facilities, and pharmaceutical support enabled Sri Lanka to stabilise public health outcomes while limiting prolonged economic disruption.

Perhaps most significantly, during Sri Lanka’s 2022 economic and balance-of-payments crisis, India extended over $ 4 billion in assistance, including credit lines for fuel, food, fertiliser, and medicines, alongside currency swaps. India was also among the first creditors to formally support Sri Lanka’s debt restructuring process, an action that helped unlock IMF support and restore international confidence.

Cyclone Ditwah, therefore, fits into a broader narrative: India’s transition from crisis relief provider to long-term economic stabiliser for Sri Lanka.

Focus areas: Rebuilding the economic spine

The reconstruction assistance announced after Cyclone Ditwah targets sectors with the highest economic multiplier effects:

Transport infrastructure: Roads, railways, and bridges damaged by the cyclone will be rehabilitated to restore supply chains, market access, and labour mobility. India’s rapid construction of Bailey bridges in Kilinochchi and ongoing work in Chilaw exemplifies this focus on connectivity as an economic priority.

Housing reconstruction: Restoring housing stock directly supports social stability while stimulating the construction sector, local employment, and demand for materials.

Health and education facilities: Rebuilding hospitals and schools protects human capital, arguably Sri Lanka’s most valuable long-term economic asset.

Agriculture and livelihood support: Targeted assistance for agriculture helps stabilise rural incomes, safeguard food security, and mitigate inflationary pressures.

Disaster preparedness and resilience: Strengthening early warning systems, emergency medical response, and disaster infrastructure reflects a shift toward preventive economic governance, reducing future fiscal shocks.

Business and investment implications

From a business perspective, the reconstruction phase presents tangible opportunities:

Increased activity in construction, engineering, logistics, and professional services

Greater participation of local contractors, SMEs, and suppliers, consistent with India’s emphasis on using local resources

Improved investor sentiment driven by visible international backing and infrastructure renewal

For professionals, particularly chartered accountants, engineers, and project advisors, this phase demands strong governance, financial discipline, and transparent reporting to ensure that concessional financing translates into sustainable economic value.

Strategic and regional dimensions

India’s assistance is anchored in its Neighbourhood First and MAHASAGAR policies, reinforcing Sri Lanka’s role as a stable partner in the Indian Ocean region. Importantly, India has reiterated its commitment to transparent implementation and effective coordination mechanisms, reducing execution risks often associated with post-disaster reconstruction.

Beyond reconstruction, India’s stated intention to support Sri Lanka through enhanced tourism flows and increased foreign direct investment adds a growth-oriented dimension to post-cyclone recovery.

Recovery built on trust and continuity

India’s $ 450 million reconstruction package following Cyclone Ditwah is best understood not as a standalone intervention, but as part of a long continuum of economic, humanitarian, and strategic support extended to Sri Lanka during periods of national adversity.

At a time when climate risks are intensifying and fiscal buffers remain limited, such predictable and timely assistance provides Sri Lanka with both breathing space and rebuilding momentum. The challenge ahead lies in execution and ensuring that reconstruction spending is efficient, transparent and resilience focussed.

Handled well, the aftermath of Cyclone Ditwah can become another chapter where crisis gives way to reform, recovery, and renewed economic confidence supported by a partnership that has repeatedly proven its reliability.

India’s response to Cyclone Ditwah reinforces a partnership defined by continuity, credibility, and economic pragmatism. From the 2004 tsunami and post-conflict reconstruction to the COVID-19 pandemic, the 2022 economic crisis, and now structured post-cyclone rebuilding, India has consistently supported Sri Lanka at moments of national stress. The $ 450 million reconstruction package which combines grants and concessional financing, offers critical fiscal space while enabling infrastructure restoration, livelihood recovery, and resilience building. Its real value, however, will be measured by execution: transparent governance, professional oversight and timely delivery. If implemented effectively, this assistance can help convert crisis into opportunity supporting economic stabilisation, restoring confidence, and laying the foundation for a more resilient and inclusive growth path for Sri Lanka.

(The author is a chartered accountant and could be reached via email at [email protected])

Sri Lanka Cricket (SLC) has announced that work towards building the Jaffna International Cricket Stadium (JICS) in Mandaitivu, Jaffna, is currently ongoing and progressing as planned.

Construction activities at the ground were temporarily halted due to Cyclone Ditwah, which disrupted the scheduled work program, including the first trial game that was scheduled to be played on 14 January 2026, a media release stated.

Work has now resumed, and the trial game will be played following the completion of the ICC Men’s T20I Cricket World Cup 2026, which is co-hosted by Sri Lanka and India.

SLC remains confident of completing the construction of the ground within the planned timelines. The international cricket ground will be developed on 48 acres, featuring 10 centre wickets, with boundary distances extending up to 80 metres. The construction of the stadium is part of SLC’s broader vision to develop a sports city in Jaffna, covering a total area of 138 acres. This landmark initiative constitutes an important achievement in promoting cricket development in Sri Lanka’s Northern Province and complements SLC’s National Pathway Program.

The Employers’ Federation of Ceylon (EFC) has donated Rs. 1 million to the ‘Rebuilding Sri Lanka’ Fund, established to support communities and individuals affected by the Cyclone Ditwah, which caused widespread damage across several parts of the country.

The donation was formally presented to the Labour Minister Dr. Anil Jayantha Fernando, in the presence of the Labour Deputy Minister Mahinda Jayasinghe, and the Secretary to the Ministry of Labour, S.M. Piyathissa.

Representing the Employers’ Federation of Ceylon at the occasion were Director General Vajira Ellepola and Deputy Director General Adhil Kasim.

The donation forms part of broader efforts to mobilise institutional support for national recovery initiatives.

Corporate earnings declined year-on-year (YoY) in the September 2025 quarter, ending a seven-quarter growth streak, as sharp contractions in food, beverage and tobacco and capital goods outweighed continued strength in banks and diversified financials.

According to earnings compiled by First Capital Research, aggregate profits of 273 listed companies fell 12% YoY to Rs. 176.5 billion in the Sep-25 quarter from Rs. 200.2 billion a year earlier. On a sequential basis, however, earnings rose 14% quarter-on-quarter, indicating that underlying momentum remained intact despite near-term sectoral pressures.

First Capital said banking (Rs. 52 billion, up 39% YoY) and diversified financials (Rs. 39 billion, up 112% YoY) continued to underpin overall earnings resilience, while weakness in food, beverage and tobacco (Rs. 32 billion, down 60% YoY) and capital goods (Rs. 11 billion, down 72% YoY) weighed heavily on aggregate performance.

Three sectors reported losses: Consumer services (Rs. 1.3 billion, down 43% YoY), commercial and professional services (Rs. 97 million, down 56% YoY) and software and services (Rs. 26 million, down 80% YoY).

The food, beverage and tobacco sector recorded a steep 60% year-on-year decline in earnings, alongside an 8.7% quarter-on-quarter contraction. First Capital attributed the downturn to disruptive weather conditions and rising costs, particularly labour.

Within the sector, BIL posted the sharpest decline, with earnings falling 117.1% year-on-year due to an adverse base effect. In the September 2024 quarter, BIL had recorded Rs. 50.8 billion in gains from investment acquisitions, compared to Rs. 47.2 million in the current quarter.

Despite the earnings slump, BIL’s revenue rose nearly 90% year-on-year, while gross profit increased by around 17%, partly offset by a more than doubling of cost of sales. CTC was hit by volume declines linked to weather disruptions, while SUN’s bottom line was mainly affected by a 75.1% year-on-year increase in income tax expenses.

Earnings in the capital goods sector fell 71.8% year-on-year, largely reflecting a high base from one-off gains recorded in the September 2024 quarter.

BRWN alone accounted for much of the drag, after reporting Rs. 32.8 billion in gains on bargain purchases a year earlier, compared to Rs. 30.5 million in Sep-25, resulting in a 118.3% year-on-year drop in earnings.

Excluding this impact, First Capital noted that underlying sector performance remained broadly resilient, with most companies posting earnings growth and the sector recording a sharp 234.4% quarter-on-quarter rebound.

BRWN still delivered a 73.1% year-on-year increase in revenue, though an 85.9% rise in cost of sales limited gross profit growth to 40%. MEL, RICH and LWL also saw earnings declines, driven by weaker other income, higher income tax charges and rising administrative and finance expenses.

In contrast, diversified financials emerged as the strongest performing sector in the Sep-25 quarter, with earnings surging 112.6% year-on-year and rising 18.2% quarter-on-quarter.

First Capital said the performance was supported by a softer interest rate environment, improving macroeconomic conditions and sustained demand for imported vehicles. LOLC and LOFC led sectoral growth, posting year-on-year earnings increases of 166.9% and 106.1% respectively.

LOLC recorded a 17.2% year-on-year rise in net interest income and a 32.0% expansion in gross profit, driven mainly by its manufacturing and trading segment. LOFC benefited from loan book expansion, margin improvement and an impairment reversal of Rs. 176.9 million.

GUAR reported an exceptional 2,764.5% year-on-year increase in earnings, driven primarily by a Rs. 1.1 billion fair value gain on financial assets amid rising equity markets.

The banking sector also maintained a solid growth trajectory, with earnings up 38.9% year-on-year and 6.8% quarter-on-quarter.

First Capital said lower interest rates supported loan growth, while improved net fee and commission income, aided by higher remittances and trade flows, contributed positively. The recovery in capital-intensive sectors such as construction also improved asset quality and lending appetite.

COMB, HNB and NDB emerged as the top performers, with HNB’s results further boosted by a Rs. 2.1 billion impairment reversal during the quarter.

Despite the year-on-year decline, First Capital said the quarter-on-quarter rebound in earnings highlights that the broader earnings recovery remains in place, even as sector-specific headwinds continue to shape near-term performance.

BRAC Bank has partnered with N-able, a leading technology solutions provider, to receive comprehensive data centre consultancy services, marking a strategic step in enhancing the bank’s technology operations.

Under this collaboration, N-able will provide expert guidance in the planning, design, and governance of BRAC Bank’s data centre, ensuring that core technology operations meet global standards for availability, efficiency, and security. The partnership will enable BRAC Bank to leverage advanced technology to deliver superior services to its customers.

N-able, one of Sri Lanka’s leading technology solution providers, has successfully delivered complex data centre projects and provided end-to-end maintenance support for major banks and telecommunications providers, helping clients achieve operational resilience and continuous service.

The International Department of the Communist Party of China (CPC) Central Committee has pledged Ditwah disaster relief assistance valued at at Chinese Yuan, or Renminbi (RMB) 1 million to Sri Lanka (Rs. 44 million), the Chinese Embassy in Sri Lanka said.

In a post on X, the Embassy said, ‘Love and care from the Communist Party of China (CPC) to the Sri Lankan people.’

The Embassy also noted that a senior delegation of the Communist Party of China, led by Wang Junzheng, a member of the 20th Central Committee of the CPC, visited Sri Lanka recently.

On 2 December, the Government of Sri Lanka received a donation of $ 1 million in financial assistance and CN¥ 10 million worth of emergency relief supplies from the Government of China. In addition, $ 100,000 was provided through the Red Cross Society of China to the Sri Lanka Red Cross Society, while Chinese enterprises and citizens in Sri Lanka contributed a further Rs. 10 million in support of the relief efforts.

The Container Transport Owners Association (CTOA) recently made a financial contribution of Rs.1.5 million to Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah.

The contribution was handed over to the Secretary to the President Dr. Nandika

Sanath Kumanayake by CTOA Chairman W. M. S. K. Manjula, Secretary Jayantha Karunadhipathi, and Consultant Dilip Perera in the presence of Ports Minister Aruna Karunatilake.

Panasian Power PLC yesterday said it has successfully connected a 5 MW ground-mounted solar power project at Baddegama, Galle, to the national grid, marking the completion of the last project under a batch of seven solar plants that entered into power purchase agreements in the third quarter of 2024.

The company said the project was connected to the Galle Grid Substation on 30 December 2025 and has commenced revenue generation through a subsidiary of Panasian Power PLC.

The Baddegama plant adds 5 MW of alternating current capacity, equivalent to 6.76 MWp of installed DC capacity, to the national grid. Panasian Power noted that this is the final 5 MW ground-mounted solar project to be connected to the grid under the relevant PPA framework.

The company said the testing and commissioning of the project represents a key milestone in its renewable energy development strategy, while also supporting Sri Lanka’s efforts to expand renewable energy capacity.

The project utilises Longi bifacial N-type solar photovoltaic modules with a capacity of 615 watts and fixed-tilt technology. Panasian Power said the DC capacity has been optimised to ensure an efficient AC/DC design ratio and maximise energy generation from available solar resources.

The share price of Panasian Power closed 40 cents up yesterday at Rs. 23.40.