February 28, Colombo (LNW): The government is currently in talks with both local and international stakeholders to develop a sovereign cloud that will safeguard the nation’s digital infrastructure, according to high-ranking officials.

This initiative is part of the country’s broader efforts to establish a secure national digital identity, a project that has raised significant concerns over the protection and sovereignty of sensitive data.

Sri Lanka’s push towards a sovereign cloud aims to establish a secure, resilient framework for the country’s data that meets both local and international security standards. Sanjaya Karunasena, the Director of the Information and Communication Technology Agency (ICTA), revealed that discussions are underway with various qualified players in the sector to create a collaborative approach in setting up the cloud system.

“We are working on a mechanism that will allow all qualified local and international participants to contribute to the development of our sovereign cloud,” Karunasena explained in an interview on Wednesday.

One of the central challenges that the government faces is ensuring the integrity of citizen data, especially as the national digital identity system, which will be based on biometric verification, is rolled out. With personal data security as a top priority, the government is emphasising the need for rigorous testing and safeguards to protect sensitive information.

“The cloud will be a cornerstone of this effort, enabling a reliable and robust system for digital identity management,” Karunasena said, underscoring the importance of having multiple security measures in place before the system can be made publicly available.

In February, plans for a national data exchange were also disclosed, designed to work in conjunction with the sovereign cloud, facilitating the secure and efficient exchange of data across platforms.

These initiatives aim to bring Sri Lanka in line with global best practices in digital infrastructure while maintaining strict control over national data sovereignty.

Addressing the issue of cybersecurity, Dr. Hans Wijesuriya, the Chief Adviser to the President on Digital Economy, highlighted that fundamental security measures must be at the forefront of the national digital strategy. Speaking at the Innovation Island Summit in Colombo, he explained that each type of data demands a tailored approach to risk mitigation.

“Security and control mechanisms must be designed based on a granular understanding of the data in use and the associated risks,” he stated.

Wijesuriya emphasised that the government’s approach would involve multiple layers of security, integrated with systems that prioritise both national safety and the ease of doing business across borders.

The government’s initiative aims to enhance not only citizen services but also foster a more inclusive and interconnected business environment. By leveraging cross-border business-to-business (B2B) interfaces, Sri Lanka hopes to significantly increase trade and regional economic activity, thereby boosting its digital economy.

By: Staff Writer

February 27, Colombo (LNW): Sri Lanka is aiming for a total export revenue of around US$ 19 billion in 2025, with merchandise exports projected to reach US$ 14 billion and services exports expected to hit US$ 4.2 billion.

The export sector kicked off 2025 on a positive note, with total exports crossing US$ 1.3 billion in January, marking a 7.5 percent year-on-year (YoY) increase, data from the Export Development Board (EDB) showed.

Merchandise exports rose 3.5 percent to US$ 1 billion, led by a 15 percent surge in agricultural shipments to US$ 258.9 million, while industrial exports remained largely flat, inching up 0.08 percent to US$ 745.9 million. Services exports jumped 37.9 percent YoY to US$ 329.4 million.

Apparel and textiles, Sri Lanka’s largest export category, saw a sharp 21.1 percent increase, bringing in US$ 460.2 million. Tea exports, which made up 12 percent of total merchandise shipments, rose 2.6 percent YoY to US$ 112.7 million, buoyed by a 29.8 percent jump in packaged tea sales. Strong demand for coconut-based products also contributed with coconut oil, cream, and fiber shipments recording gains.

Among agriculture exports, spices and essential oils saw a robust 32.9 percent increase to US$ 39 million, largely due to higher pepper and clove shipments to India and Saudi Arabia. Diamonds, gems, and jewelry also performed well, rising 28.2 percent to US$ 42.3 million, benefiting from improved demand in the US and European markets.

However, not all sectors fared well. Rubber product exports fell 8.2 percent YoY to US$ 75.1 million, while seafood exports plunged 23.2 percent, hit by weaker demand for fresh fish and shrimp. Exports of electrical and electronic components also declined, slipping nearly 9 percent YoY.

The US remained Sri Lanka’s top export market, accounting for 23 percent of total merchandise exports, with shipments rising 18 percent to US$ 260.2 million. India emerged as the second-largest buyer, with exports surging 43.9 percent to US$ 81.9 million, driven by strong pepper sales. Exports to the European Union, which makes up nearly a quarter of total exports, increased 16.3 percent to US$ 227.2 million.

Sri Lanka is targeting an ambitious export revenue target of US$ 19 billion for 2025. Merchandise exports are projected to grow from US$ 12.7 billion in 2024 to US$ 14 billion in 2025, while services exports are expected to rise from US$ 3.5 billion to US$ 4.2 billion.

The targets align with a five-year plan aimed at increasing export earnings to US$ 36 billion by 2030, with US$ 25 billion from goods and US$ 11 billion from services.

By: Staff Writer

February 27, Colombo (LNW): Port City Colombo is rapidly emerging as Sri Lanka’s premier multi-service Special Economic Zone, positioning itself as a pivotal financial and business hub in the South Asian region. With state-of-the-art infrastructure and investor-friendly policies, the city has garnered significant international attention.

The development is progressing steadily, with various commercial, residential, and recreational projects taking shape. Key attractions such as the Mall at Port City Colombo and South Asia’s first downtown duty-free shopping complex are already transforming Colombo’s economic landscape, drawing global investors and businesses alike.

The government’s commitment to fostering a pro-business environment has made Port City Colombo a competitive destination for foreign direct investment (FDI).

With strategic partnerships, improved regulatory frameworks, and a focus on sustainability, the city aims to enhance Sri Lanka’s global trade presence. As part of this effort, Port City Colombo continues to host international delegations and forums, showcasing its potential as a financial and commercial powerhouse.

Recently, Port City Colombo hosted Lord Swire, Deputy Chairman of the Commonwealth Enterprise and Investment Council (CWEIC), for an exclusive session on investment opportunities and economic potential within South Asia.

Accompanied by CWEIC officials, including Sri Lanka’s CWEIC Country Chair and The Capital Maharaja Organisation Group Director Niro Cooke, Board Member Pamela O’Leary, and Country Director Deshan Gonawela, the delegation was welcomed by Colombo Port City Economic Commission Director General Revan Wickramasuriya and CHEC Port City Colombo Ltd. Deputy Managing Director Thulci Aluwihare.

During the visit, the delegation attended a comprehensive presentation at the Port City Colombo Sales Gallery, which highlighted the city’s progress and its appeal to key investor markets, including the Middle East and the Asia-Pacific.

The regulatory environment, designed to facilitate ease of business, was a focal point of discussion. Additionally, the delegation experienced a guided tour of the Mall at Port City Colombo, South Asia’s pioneering downtown duty-free retail complex, which is already bolstering Colombo’s reputation as a hub for business and tourism.

CWEIC Deputy Chairman Lord Swire emphasized the importance of Sri Lanka positioning itself as an attractive destination for FDI. “Sri Lanka needs to demonstrate that it is open for foreign investment. Beyond the tea and tourism industries,

 Port City Colombo’s Special Economic Zone offers immense potential as a transformative initiative. The Commonwealth comprises some of the fastest-growing economies, and investors will undoubtedly find the opportunities at Port City Colombo intriguing.”

Niro Cooke, CWEIC Country Chair – Sri Lanka, echoed this sentiment, stating, “Sri Lanka has traditionally been known as a tourism hotspot, but we now have the potential to evolve into a diversified service-based economy. With FDI catalysts such as Port City Colombo, a stable economic outlook, and a strategic geographic location, Sri Lanka has all the right elements to emerge as a formidable regional business hub.”

Port City Colombo has been actively strengthening investor relations across the Commonwealth as a CWEIC Strategic Partner. The city recently participated in the Commonwealth Business Forum 2024 in Apia, Samoa, where it highlighted its role in promoting sustainable economic growth and skilled workforce mobility within South Asia.

With continued international engagement and progressive initiatives, Port City Colombo is poised to become a leading economic powerhouse in the region.

By: Staff Writer

February 27, Colombo (LNW): The first US-based RM Parks’ Shell fuel station opened in Sri Lanka on Wednesday at the BS Cooray Filling Station, in Ambatale.The US Ambassador to Sri Lanka Julie Chung declared open the fuel station.

“Proud to join the opening of the first California-based RM Parks’ Shell fuel station in Sri Lanka, with 150 stations planned. This investment adds a reliable fuel provider to the market and makes America and Sri Lanka more prosperous. Diversifying fuel suppliers will help avoid the fuel shortages that caused Sri Lanka’s 2022 fuel crisis,” the Ambassador said.

She said the opening highlights Sri Lanka’s openness to foreign investment and to maintaining a level playing for all businesses.

“This opening is great for all Sri Lankan drivers: motorcyclists, car drivers, tuk drivers, truck drivers.  Adding competitors to the markets gives them more quality and product options. And the convenience stores will provide snack and essentials to a society increasingly on the go,” she added.

The Ambassador said that in alignment with US President Trump’s vision of making America safer, stronger, and more prosperous, the event in Sri Lanka reinforces the United States as a global energy leader.

She said that by investing in Sri Lanka’s energy infrastructure, the US is not only strengthening supply chains, but also advancing the ties that bind the two nations.

This ceremony opens  an  exciting new chapter in Sri Lanka’s energy sector—a partnership that brings together RM Parks, a renowned American family company with a rich history in fuel distribution, and Shell, a name synonymous with quality and innovation!  .

It is the grand opening of the first RM Parks and Tristar-fueled, Shell branded fuel shed in Sri Lanka in over six decades.  This event is not merely the inauguration of a service station; it is the rekindling of a relationship.,she added.

Half a century ago, Shell fuel sheds were a familiar sight across this beautiful island.  The Shell emblem stood as a beacon of quality and trust, symbolizing progress and connection.

And RM Parks began as a small operation in Porterville, California, in 1969 when RM Parks and his wife Clarice made the bold decision to purchase a fuel business and build it from the ground up.

 Their journey embodies the essence of the American Dream – starting with humble beginnings and growing into a thriving, multi-generational enterprise through hard work, perseverance and a commitment to building strong relationships with both employees and customers.

Today RM Parks is a three-generation family business, rooted in a small farming town in California.  It’s a true American entrepreneurial story — farmers who entered the fuel business, then grew a family and a company at the same time.

 RM Parks’ grandchildren grew up riding in trucks with their fathers, making fuel deliveries to farmers.  The fuel powered the farms and businesses that are the backbone of American prosperity.

RM Parks now serves more than 240 locations across California, continuing to honor its legacy of excellence. This partnership with Shell is not just a business venture; it’s an example of how American ingenuity and values can drive innovation and create lasting impact—both locally and globally.

The collaboration between RM Parks and Shell is a testament to the enduring bonds between the United States and Sri Lanka.  It reflects our shared commitment to fostering economic growth, enhancing energy security, and building prosperity throughout the Indo-Pacific region.

In alignment with President Trump’s vision of making America safer, stronger, and more prosperous, today’s event reinforces the United States as a global energy leader.  By investing in Sri Lanka’s energy infrastructure, we are not only strengthening supply chains, but also advancing the ties that bind our two nations.

It also highlights Sri Lanka’s openness to foreign investment and to maintaining a level playing for all businesses.  This opening is great for all Sri Lankan drivers: motorcyclists, car drivers, tuk drivers, truck drivers. 

Adding competitors to the markets gives them more quality and product options.  And the convenience stores will provide snack and essentials to a society increasingly on the go.

By: Staff Writer

February 27, Colombo (LNW): The National Chamber of Exporters of Sri Lanka (NCE) has voiced concerns about the proposed removal of the Simplified Value Added Tax (SVAT) system and its replacement with a VAT refund mechanism.

While acknowledging the Government’s commitment to digital transformation and economic modernization, the NCE highlights the potential risks this change could pose to the export sector and urges careful planning.

Impact on the Export Sector

Exporters are a crucial pillar of Sri Lanka’s economy, playing a significant role in achieving the Government’s $19 billion export target.

 However, the industry is already facing multiple challenges, such as fluctuating global demand, intense international competition, and domestic operational constraints.

The elimination of SVAT without an efficient refund system in place could further strain exporters, creating financial instability and reducing global competitiveness.

The SVAT system has provided a vital advantage by mitigating cash flow disruptions through VAT offsetting on inputs. This mechanism ensures smoother operations and cost efficiency for exporters.

Replacing it with a refund-based system assumes that digitalization will facilitate timely and efficient VAT reimbursements.

While the NCE supports the Government’s digital economy vision, it insists that the new system must be rigorously tested before full implementation to avoid potential disruptions.

Past Challenges with VAT Refunds

Historically, VAT refund mechanisms have presented significant difficulties, with exporters experiencing prolonged delays and cumbersome administrative procedures.

These inefficiencies have led to cash flow constraints, forcing businesses to seek high-interest loans to meet order commitments, thereby increasing operational costs.

Such setbacks emphasize the need for a robust and reliable refund system that prevents recurrence of past issues.

NCE’s Recommendations for a Smooth Transition

To mitigate risks and ensure a successful transition, the NCE recommends a phased, well-monitored approach, including:

Pilot Testing: A comprehensive pilot project in collaboration with the Export Development Board (EDB) to evaluate system functionality under real-world conditions and identify potential issues before full implementation.

Clear Implementation Timeline: The Government should establish a structured timeline with a transitional period, allowing exporters to adapt gradually without operational disruptions.

Stakeholder Training and Support: Adequate training and technical support must be provided to exporters and relevant stakeholders to facilitate seamless adoption of the new system.

Timely VAT Refunds: The Department of Inland Revenue must guarantee prompt VAT refunds, with clear mechanisms for handling delays and resolving disputes efficiently.

Contingency Measures: A backup plan should be in place to address potential system failures, ensuring exporters do not suffer due to administrative inefficiencies.

Avoiding Irreversible Consequences

Once implemented, reversing a flawed system will be challenging. A poorly executed rollout could undermine exporter confidence in Government policies, exacerbating the sector’s existing struggles. Therefore, all potential risks must be addressed beforehand to prevent any negative repercussions.

Call for Collaborative Dialogue

The NCE urges the Government to engage in meaningful discussions with exporters and other key stakeholders to ensure a balanced approach to the VAT system transition. Any reform must align with the broader objective of strengthening the export sector, a key driver of Sri Lanka’s economic growth.