Govt. to draft four bills under sweeping labour law reforms

The Government is preparing to introduce four new bills as part of its broad labour law reform agenda aimed at modernising Sri Lanka’s employment framework and aligning it with evolving economic and social realities, the Parliament Secretariat said yesterday.

The Ministerial Consultative Committee on Labour Affairs this week hear submissions from the Labour Ministry on the proposed reforms focus on simplifying and consolidating existing laws while strengthening worker protection and employer flexibility. Labour Minister Dr. Anil Jayantha Fernando and Deputy Minister Mahinda Jayasinghe participated in the meeting.

A 17-member committee has been appointed to review 14 existing labour laws and develop four new bills covering trade unions, labour relations, occupational safety, and termination of employment.

The committee has agreed that necessary amendments will be made to the current laws until the new framework is enacted.

Revisions will also be introduced to the laws on women working at night, labour protection, and insurance provisions related to employment termination.

The reforms are intended to balance worker welfare with the competitiveness and adaptability of enterprises.

According to Labour Ministry officials, the national policy on occupational safety and health has reached its final stage and will be published shortly. Work is also underway to upgrade the Labour Department’s database, ensuring that under the Government’s digitalisation drive, all workers are registered in the system immediately upon entering the labour force, the Parliament Secretariat said.

Singer Finance and Toyota Lanka join forces to make vehicle ownership easier for Sri Lankans

Singer Finance (Lanka) PLC and Toyota Lanka Ltd. have announced the signing of a Memorandum of Understanding (MoU) to strengthen customers’ access to innovative and affordable vehicle financing solutions in Sri Lanka.

Through this partnership, customers purchasing Toyota and Hino vehicles from Toyota Lanka will benefit from Singer Finance’s comprehensive financing facilities, including leasing, revolving loans, and vehicle loan schemes. The agreement also paves the way to offer customers greater flexibility and exclusivity in service delivery when financing Toyota vehicles through Singer Finance, including priority processing, personalised assistance, and convenient documentation support.

Singer Finance Chief Executive Officer/Director Thushan Amarasuriya stated: ‘At Singer Finance, our focus has always been on empowering customers through accessible and innovative financial solutions. This partnership with Toyota Lanka combines our expertise in financial services with one of the most trusted automotive brands in the world, offering Sri Lankans a unique opportunity to fulfil their vehicle ownership aspirations with greater ease and confidence.’

Adding his perspective, Toyota Lanka Managing Director/Chief Executive Officer Manohara Atukorala said: ‘At Toyota Lanka, our purpose is to enrich lives through sustainable mobility. Partnering with a trusted financial institution like Singer Finance enables us to expand our reach and make Toyota ownership more accessible, convenient, and reliable for our customers. Together, we aim to drive forward a shared vision of safer, smarter, and more inclusive transportation for every Sri Lankan.’

Singer Finance stands as the primary financial entity within the Hayleys Group, Sri Lanka’s most diversified conglomerate with over 140 years of contributing to the nation’s economic and social progress. Backed by this legacy, Singer Finance continues to strengthen its position as a trusted financial service provider, and the partnership with Toyota Lanka marks another step in delivering unmatched value and convenience to customers.

IRCSL expands insurance awareness to Northern Province

The Insurance Regulatory Commission of Sri Lanka (IRCSL) continues its countrywide insurance awareness campaign under the theme ‘Insurance for All: For a Secure Future’ with a series of programs scheduled to take place in the Northern Province, in Jaffna on 22 October 2025 and Kilinochchi on 23 October 2025.

Following the launch of the initiative in the Southern Province in Matara District, the IRCSL now takes its awareness program to Northern region, aiming to promote financial inclusion, improve insurance penetration, and enhance public understanding of the importance of insurance as a tool for protection and stability.

Jaffna District Program will be held at the Thiruvalluvar Cultural Centre Auditorium and will feature two Awareness Workshops in the morning and in the afternoon. The workshops will be conducted in collaboration with the Insurance Association of Sri Lanka (IASL), Sri Lanka Insurance Brokers Association (SLIBA), and the Sri Lanka Insurance Institute (SLII), with the active participation of all licenced life and general insurance companies.

The morning awareness session will target Government officers, bankers, SMEs, and the public and will cover presentations on life, motor, non-motor insurance, as well as Government insurance schemes such as Agrahara and special schemes like the Optional Compensation Scheme (OCS) for third-party motor accident victims. Sessions will also highlight the role of IRCSL in regulating and developing the industry and the advantages of obtaining insurance through licenced brokers. The workshop will conclude with a Q and A session focusing on common misconceptions, selecting the right insurance, and claims procedures.

The evening session will target university students, A/L students, teachers and lecturers will feature engaging presentations and video segments on life, motor, non-motor insurance, as well as special awareness segments on Suraksha, education pathways, and career opportunities in the insurance sector, along with the role of the IRCSL in protecting policyholders. Students will have the opportunity to interact with industry experts, discuss career prospects, and submit their CVs for future opportunities.

Kilinochchi District Program, scheduled for 23 October 2025, will follow a similar model, further advancing IRCSL’s efforts to extend insurance education and awareness to communities at the regional level.

Through these district-level initiatives, IRCSL seeks to build a more informed and financially secure society by empowering the public with knowledge of insurance, available schemes, and consumer rights. The campaign is part of IRCSL’s broader commitment to expanding insurance awareness across all provinces in Sri Lanka, thereby fostering greater confidence and inclusiveness in the insurance sector.

IPS calls for shift from cyclical rebound to structural growth

Sri Lanka must now convert its cyclical post-crisis rebound into a structurally driven growth process, the Institute of Policy Studies (IPS) said yesterday, warning that the country’s recovery will hinge on deeper productivity and efficiency gains as external uncertainties persist.

Releasing its annual Sri Lanka: State of the Economy 2025 report, the IPS said GDP growth of 4.9% in the first half of 2025 reflected the outcomes of a steady and predictable policy environment. However, it noted that sustaining this momentum would depend on structural reforms, particularly in land and labour markets, and greater openness to trade and investment to improve resource allocation.

‘At this mid-point of Sri Lanka’s post-crisis recovery, a critical question is what the source of such productivity gains will be. Reforms to tackle rigidities in land and labour markets or opening up to trade and investment help to improve resource allocation and lift productivity,’ the IPS said in a statement.

The report said technology infusion and digitalisation could accelerate productivity gains while broader institutional and policy reforms take effect. It highlighted the challenge for policymakers in balancing long-term reform goals with short-term social and economic demands, especially in an economy still recovering from crisis conditions.

National computer literacy remains low at 39%, with sharp disparities such as 17.9% in the estate sector. Yet IPS said the digital economy offers an opportunity to narrow social and regional inequalities if supported by investments in digital access for underprivileged schools, affordable services, and digital literacy programs.

The report cited that 42% of adults in the poorest 40% of households already use digital payments, a trend that could strengthen e-commerce growth and modernise transport and public service delivery. Extending digital tools to agriculture could also reduce costs, improve traceability, and enhance competitiveness in export markets amid global trade uncertainties.

‘It bodes well to develop Sri Lanka’s growing e-commerce sector or to improve safety and convenience of the country’s public transport system. Widespread access and scalability through digital channels on extension services can help farmers. In an environment of global trade uncertainties, lowering the costs of doing trade and enhancing export competitiveness through product traceability to meet new regulations in the global market will be distinct advantages,’ IPS said.

IPS said embedding such productivity-enhancing technologies into Sri Lanka’s economic model would not only raise efficiency but also support the Government’s objectives for stable and sustained long-term growth as the country prepares to resume its external debt service obligations.

CA Sri Lanka honours Niluka Jayasinghe as Best Entrepreneur 2025 for driving knowledge-based exports

Global Bookkeeping Solutions Ltd. (GBS) Founder and Managing Director Niluka Jayasinghe, FCA, FCPA, ACCA, FFA, FIPA, BSc (Marketing, USJP) was named CA Sri Lanka Best Entrepreneur 2025 at the 46th National Conference of Chartered Accountants, held on 9 October 2025 at the Monarch Imperial, Sri Jayewardenepura Kotte.

The award celebrates her leadership in expanding Sri Lanka’s knowledge-based export economy and advancing the business-process management (BPM) sector. Since founding GBS in 2018, Niluka has built a company delivering cloud accounting and financial outsourcing services to clients in Australia, New Zealand, UK, USA and Middle East. GBS records a five-year CAGR of 103% and employs over 50 finance professionals.

‘Sri Lanka’s future lies in exporting skills and integrity – not just goods,’ Jayasinghe said. ‘This award belongs to every professional, specially women, proving our talent can thrive globally.’

Before founding GBS, Niluka worked with Ernst and Young, BPO Connect and Ganrid Consultants, gaining global finance and compliance expertise. Her company has trained more than 200 young professionals and championed remote work models for women in finance-strengthening Sri Lanka’s human capital for the digital economy.

Her recognition underlines CA Sri Lanka’s commitment to celebrating entrepreneurs who embody integrity, innovation and impact-values that align with this year’s theme ‘UPRISE – Global Insight >> Local Impact.’

ADB urges cybersecurity, data protection must be core of SL’s digital economy

The Asian Development Bank (ADB) yesterday urged Sri Lanka to treat cybersecurity and data protection as central pillars of its digital transformation agenda, warning that national competitiveness and public trust in digital services will depend on how well the country safeguards its information infrastructure.

ADB Sectors Department 2 Director General Cleo Kawawaki said cybersecurity is not only a policy or institutional concern but a shared responsibility that must extend across government, business, and individuals.

‘This morning, I woke up with a phishing email telling me that my app had been accessed from somewhere else and that I should press a button to fix it,’ she said at the ADB Serendipity Knowledge Program (SKOP) on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development yesterday in Colombo, in partnership with the Department of National Planning of the Finance Ministry.

‘We all know what that means. It means that if I press that, it steals all my details. Cybersecurity threatens every single one of us. All of the promises of the digital economy can be undone by one person not watching out and pressing that button,’ she added.

She said that while technology and policy are critical, awareness and behaviour across society are equally vital to building a resilient digital economy.

‘It is not just a policy issue, it is not just an institutional issue, but a whole-of-society issue,’ she said. ‘Events like this can raise awareness and help us find solutions so that the promise of digital can be delivered to the whole society without the crushing risks and breaches of trust that come from these threats.’

Kawawaki said the ADB’s SKOP is a flagship initiative supporting Sri Lanka’s evolving development priorities and advancing secure, inclusive, and interoperable digital ecosystems across the Asia-Pacific region.

‘The Government has recently launched its cybersecurity strategy and is reinforcing its institutional foundations through the implementation of the Data Protection Act and the forthcoming Cyber Security Bill,’ she said.

‘As Sri Lanka accelerates its digital transformation, enabling whole-of-Government digitalisation and expanding services to citizens, the need for a secure and trusted digital economy has become more relevant than ever.’

She warned that cyber threats and data privacy risks are growing in scale and complexity, posing significant challenges to public trust, economic resilience, and national security.

‘Without trust, digital services cannot thrive. Without security, the benefits of digitalisation risk being undermined,’ she said. ‘That is why cybersecurity and data protection must be embedded by design and by default into all of the country’s digital initiatives.’

Kawawaki said the ADB is working with the Government to strengthen the country’s cybersecurity and data protection governance frameworks and build institutional capacity to respond effectively to emerging threats.

Chief Adviser to the President on Digital Economy and Information Communication Technology Agency of Sri Lanka (ICTA) Chairman Dr. Hans Wijayasuriya told the forum that Sri Lanka will anchor its digital economy strategy on cybersecurity and data protection, viewing them not as regulatory necessities but as the foundation for innovation, competitiveness, and economic resilience.

Dr. Wijayasuriya said secure data systems and privacy frameworks will define Sri Lanka’s ability to build trust and attract investment in the digital era.

‘A good data protection and cybersecurity framework provides the platform for innovation and competitive advantage. Few countries can now compete on cost; agility and trust are the new calling cards,’ he said.

He explained that cybersecurity and privacy measures form the ‘security by design’ foundation for the Government’s plan to grow the digital economy fivefold to $ 15 billion by 2029 and triple digital exports to more than $ 5 billion.

‘We designed the Digital Economy Blueprint for Sri Lanka to be Artificial Intelligence (AI)-first and anchored on trust. Cybersecurity, privacy, and ethical AI are not optional-they are the bedrock of growth,’ he added.

Dr. Wijayasuriya noted that Sri Lanka has already made significant progress with the enactment of the Personal Data Protection Act (PDPA), the establishment of the Data Protection Authority, and the development of the National Cyber Security Centre (NSSERT). These, he said, place Sri Lanka in the upper quartile globally in terms of cyber resilience.

He urged policymakers and businesses to treat trust and data governance as strategic differentiators.

‘In today’s digital economy, our unique competitive advantage must be trust, delivered through world-class cybersecurity, privacy technologies, and governance,’ he said, adding, ‘Sri Lanka should aim to be known as the Serendip of trust, governance, and safety in the digital world.’

Industry leaders and Government officials yesterday emphasised the urgent need to build a security-first and privacy-respecting culture across Sri Lanka’s digital ecosystem, highlighting enforcement challenges, data protection gaps, and the importance of public-private partnerships at the SKOP on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development hosted by the ADB in Colombo.

During the first panel discussion, moderated by ADB Digital Technology Specialist – Cybersecurity and Data Privacy Masatake Yamamichi, participants examined the role of cybersecurity and data protection in developing Sri Lanka’s digital economy, enforcement challenges, and international cooperation. Speakers included Japanese Internal Affairs and Communications Ministry Office of the Director-General for Cybersecurity Director Yuki Naruse, Sri Lanka Computer Emergency Readiness Team (SLCERT) Chairman Thilak Pathirage, Commercial Bank of Ceylon PLC Chief Information Security Officer Sunari Dandeniya, Sysco LABS Security Architect Lasantha Priyankara, and Scybers Head of Threat Intelligence Chamath Rathnasekara.

The panellists discussed the need for greater capacity building and consistent enforcement of cybersecurity policies, while stressing that rapid digitalisation across sectors has made resilience and data protection essential to economic stability. The discussion also covered emerging cyber threats, the balance between privacy and innovation, and strengthening institutional frameworks through international collaboration.

A second panel, moderated by ADB Digital Sector Director Antonio Zaballos, focused on cultivating a ‘security-first and privacy-by-design’ mindset from schools to workplaces, including within Government institutions. Speakers included LIRNEasia Founder and Sarvodaya Chairman Prof. Rohan Samarajiva, Data Protection Authority Chairman Rajeeva Bandaranaike, and Visa Sri Lanka and Maldives Country Manager Avanthi Colombage.

The discussion underscored the importance of building trust in digital services, enhancing regulatory enforcement, and improving digital literacy across both public and private sectors. Bandaranaike highlighted that regulation must evolve alongside awareness, while Prof. Samarajiva called for consistent public policy frameworks to prevent data misuse. Colombage noted that private-sector collaboration can help improve public confidence in digital transactions and strengthen cybersecurity infrastructure.

We will preserve peace and defend our territorial integrity, Defence Minister says

Minister of Defence Vassilis Palmas said Thursday that the Republic of Cyprus, within the framework of its inalienable right to ensure the protection of its citizens, remains determined to preserve peace and security and defend its territorial integrity, sovereign rights and national sovereignty.

In a speech, read out by Deputy Permanent Secretary of the Ministry of Defence, Dr Elikkos Elia, at the final phase of the “TAMS IRIS 2025” exercise, the Minister said that Cyprus, as the closest member state of the European Union in a region of particular geostrategic importance, geopolitical rivalries and conflicting interests, is called upon to play the role of a pillar of stability, security and cooperation.

“With consistency and responsibility, we are making every effort to promote dialogue, solidarity and mutual respect among the peoples of the region’, he said.

The Minister noted that “the message of today’s exercise is clear. The Republic of Cyprus, within the framework of its inalienable right to ensure the protection of its citizens, remains determined to preserve peace and security, and to defend its territorial integrity, its sovereign rights and its national sovereignty.’

He said that through targeted actions that include, among others, the utilization of financial and defense programs – such as the European Union’s SAFE tool – the establishment of strategic partnerships with friendly countries, the development and strengthening of the domestic defense industry, as well as the modernization of critical military infrastructure, “we constantly aim to upgrade the National Guard and strengthen the deterrent power of our homeland.’

Nicosia protests to UN SG about ?urkish provocations in first half of the year

In a letter to UN Secretary General Antonio Guterres, Cyprus’ Permanent Representative to the UN, Ambassador Maria Michael has protested about extensive air and naval violations by Turkey in the first half of this year which came to 975 by air and 61 by sea against Cyprus.

In a letter dated 14 October 2025 Michael details extensive air and naval violations by Trkiye between January and June 2025 and urges the UN to uphold its own decisions and principles regarding Cyprus.

The Ambassador writes that “a total of 975 air and 61 naval violations were observed during this period,’ adding that ‘249 out of the 975 air violations were by Turkish unmanned aerial military vehicles (UAVs) while 151 were by armed military fighter aircrafts.’

The letter further notes that ‘Trkiye carried out unauthorised military exercises in violation of the Republic of Cyprus’ national airspace, for which it illegally issued seven NOTAMs.’ These incidents, the ambassador stresses, are accompanied by ‘continuous violations of the military status quo on the island and near-daily incursions into the buffer zone,’ as well as ‘the continued enhancement of military infrastructure in the already heavily militarized Turkish-occupied areas.’

The Cypriot Permanent Representative describes these developments as part of Turkey’s ‘persistent aggressive behavior in Cyprus,’ warning that such acts are ‘aimed at creating new faits accomplis, undermining both the sense of security of the population and ongoing efforts to resume negotiations.’

Ankara’s conduct, Michael says in the letter, ‘clearly demonstrates intention to perpetuate its illegal military occupation,’ noting that this ‘poses serious risks not only to the security, sovereignty and territorial integrity of the Republic of Cyprus, but also to the stability of the wider Eastern Mediterranean region.’

The letter underscores the urgency of upholding the UN Charter and the principles of international law ‘universally and without exception.’ Ambassador Michael points out that ‘the sovereignty and territorial integrity of all States under threat must be safeguarded, irrespective of geography or the passage of time,’ adding that this ‘applies equally to Cyprus, where the issue remains one of military invasion and continued illegal occupation.’

She warns that the situation ‘that Trkiye has created through the use of force and the ongoing violations of human rights and international legality constitutes the true ‘reality on the ground’.’

Given these realities, the letter calls on the Security Council ‘to stand firmly by its own decisions and ensure their implementation,’ cautioning that ‘failure to do so would severely undermine the credibility and authority of the multilateral system.’

Despite these provocations, Cyprus reiterates its diplomatic commitment to a peaceful settlement under UN auspices.

The Government, the letter states, ‘reaffirms its commitment to the UN-endorsed basis for a settlement, namely a bizonal, bicommunal federation with political equality, as set out in the relevant Security Council resolutions.’ It stresses that ‘despite the obstacles imposed by Trkiye and the Turkish occupation regime, this agreed basis remains the only viable path forward for resolving the Cyprus question.’

The letter concludes by assuring that ‘the Government of the Republic of Cyprus will continue to work closely with Your Excellency, and your Personal Envoy, to create the necessary conditions for the resumption of negotiations, with the ultimate objective of reunifying Cyprus and its people, in accordance with the relevant Security Council resolutions.’

The Ambassador requests that the communication and its twelve annexes be circulated ‘as an official document of the eightieth regular session of the General Assembly under agenda item 40, entitled ‘Question of Cyprus’, and of the Security Council.’

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

R&D spending in Cyprus up 3.2% in 2023, below EU average

Cyprus recorded a modest increase in research and development (R and D) spending in 2023, though it remains well below the European Union average, according to data released on Thursday by the Statistical Service of Cyprus (Cystat).

According to the results of a special survey conducted by Cystat on scientific research and experimental development, total R and D expenditure in 2023 was estimated at pound 213.6 million, corresponding to 0.68% of Gross Domestic Product (GDP). This compares with pound 207.0 million, or 0.70% of GDP, in 2022.

Despite the 3.2% increase in R and D expenditure over the previous year, the share of GDP devoted to research and development in Cyprus remains relatively low compared with other EU countries. The EU average stands at 2.26%, ranging from 0.52% in Romania, 0.64% in Malta, and 0.68% in Cyprus, to 3.26% in Austria, 3.27% in Belgium, and 3.64% in Sweden.

However, Cyprus ranks among the fastest-growing EU countries in terms of R and D expenditure over time, with an average annual growth rate of 9.96% for the period 2000-2023 and 7.23% for 2010-2023, compared with 4.47% and 4.62% respectively for the EU as a whole.

By sector of activity, business enterprises accounted for the largest share of research spending in 2023 – pound 89.6 million or 41.9% of the total. The higher education sector followed with pound 76.9 million (36%), private non-profit institutions with pound 31.1 million (14.6%), and the government sector with pound 16.0 million (7.5%). The corresponding shares in 2022 were 41.8%, 37.4%, 15.0%, and 5.8%, respectively.

Within the business sector, information and communication technologies (ICT) represented the main area of research activity, with pound 51.7 million in expenditure, while the manufacturing industry – particularly pharmaceuticals, computer and electronic products, and electrical equipment – contributed pound 25.9 million.

Regarding sources of funding, 23.5% of R and D activity in 2023 (pound 50.2 million) was financed by public funds, compared with 22.1% (pound 45.8 million) in 2022. Additionally, pound 27.0 million came from the budgets of public universities, and pound 45.1 million from foreign sources, including EU funds. The private sector provided the largest share, amounting to pound 91.3 million, or 42.8% of total R and D spending.

Most research expenditure focused on the natural sciences (pound 94.5 million), followed by engineering (pound 66.1 million), social sciences (pound 22.3 million), agricultural sciences (pound 12.6 million), medical sciences (pound 10.5 million), and humanities (pound 7.5 million).

The number of people employed in research activities in 2023 reached 4,257, compared with 4,241 in 2022. In full-time equivalent terms, this corresponds to 2,308 persons, of whom 909 (39.4%) were women. About 33.3% of research personnel held a doctoral degree.