November 11, Colombo (LNW): The process of permitting a foreign national to establish a gem business at the Thimbirigasyaya branch of Laksala—an institution originally founded to promote Sri Lankan handicrafts in international markets—is reportedly in progress, with the outlet expected to open tomorrow (12).

According to sources, numerous irregularities and questionable aspects have emerged throughout the course of this initiative.

Laksala, formally known as the Sri Lanka Handicrafts Board, was founded under the National Crafts Council and Allied Institutions Act No. 35 of 1982 with the purpose of advancing local craftsmanship to the global stage. Conceived by the late Prime Minister Sirimavo Bandaranaike, the institution was designed to help rural artisans access fair markets and improve the quality and reach of traditional arts and crafts. Laksala operates through a network of retail outlets and functions as a self-financing entity without dependence on government funding.

During the Covid-19 pandemic, Laksala—like many other businesses—faced severe financial challenges and was unable to pay staff salaries. In response, the then State Minister for the sector, Dayasiri Jayasekara, entered into an agreement with SALA Global, a company under SALA Enterprises, which includes a Chinese director. The agreement sought to create an online platform to sell Laksala’s products in markets such as the United Arab Emirates (UAE), Japan, and China. However, this venture ultimately failed to achieve its intended results.

Subsequently, SALA Global expressed interest in the small-scale gem sales that Laksala had been conducting for years. These gem sales, though limited in scope, were intended to allow tourists purchasing local handicrafts to buy Sri Lankan gems conveniently at the same location. Revenue from these sales helped sustain the institution and ensured that artisans received fair compensation for their work.

It is reported that the aforementioned Chinese businessman later submitted a proposal to the then State Minister, Prasanna Ranaweera, seeking to expand this initiative into a large-scale gem business operating under the Laksala brand. Detailed plans were prepared for this purpose. However, the project failed to progress during Minister Ranaweera’s tenure due to a number of complications and unresolved concerns.

Under the current “Renaissance” administration, it is understood that the same businessman has now completed the necessary preparations and intends to inaugurate the new venture imminently.

This development has raised several significant concerns.

Firstly, Laksala was established by an Act of Parliament with the sole mandate of supporting and marketing products of local artisans—not for generating profits for foreign entities. The proposed gem business therefore diverges from Laksala’s founding purpose.

Secondly, Laksala was never intended to engage in large-scale gem trading. That responsibility lies with the Sri Lanka Gem and Jewellery Authority, which regulates the industry and oversees gem sales by local traders. Given this, the decision to allow a Chinese businessman to conduct gem trading operations within Laksala’s premises is highly questionable.

A third and particularly serious concern relates to potential damage to the reputation of both the Laksala brand and the Sri Lankan gem industry. There have been numerous incidents of counterfeit or low-quality gems being sold to tourists by foreign traders falsely marketed as Sri Lankan products—often involving Chinese nationals. Granting a Chinese businessman the right to operate under the state-backed Laksala name risks undermining consumer confidence and tarnishing Sri Lanka’s international reputation for genuine gemstones.

Fourthly, serious questions arise as to whether proper procedures were followed in leasing or allocating space at Laksala to a private operator. Experts point out that under the government’s Procurement Guidelines (2006), an open tender and evaluation process is mandatory. Available information suggests that such a process was not conducted, raising suspicions of potential corruption.

Industry experts in the handicraft sector have therefore urged government authorities to intervene immediately to halt what they describe as a highly detrimental and irregular initiative.

Commentators further note that it is unsurprising for a politician such as Prasanna Ranaweera to have pursued such a deal, given the transactional nature of past arrangements. However, they express astonishment that figures such as Minister Sunil Handunnetti and Deputy Minister Chaturanga Abeysinghe—who came to power pledging to reject such questionable dealings—appear to have supported this endeavour.

Observers note that had this project been initiated during Ranaweera’s tenure, those same politicians would likely have vocally opposed it.

This situation, critics argue, raises the broader question of whether actions once condemned as improper are now being quietly redefined as acceptable. It remains the responsibility of the country’s leaders to assure the public that this is not the case.

By: Staff Writer

November 11, Colombo (LNW): Nearly three years after Sri Lanka and India agreed to jointly develop the historic Trincomalee oil tank farm, the project remains largely stagnant, highlighting the government’s lack of urgency in tapping one of the country’s most valuable strategic assets.

Under the quadripartite agreement signed on 6 January 2022 between the Government of Sri Lanka, the Ceylon Petroleum Corporation (CPC), Lanka Indian Oil Corporation (LIOC), and Trinco Petroleum Terminal (Pvt) Ltd (TPTL), the partners were granted 50 years to take custody, develop, and use the vast tank farm located in China Bay, Trincomalee.

The arrangement was intended to transform the 99-tank facility built by the British during World War II into a major regional petroleum storage and export hub. TPTL was authorised to engage in businesses such as petroleum storage, trading, and export of stored products, in a move expected to boost foreign exchange earnings and strengthen Sri Lanka’s energy security.

However, despite the grand vision and strategic location of the facility, actual progress has been dismal. Although a detailed development plan was drawn up soon after the agreement, it has not been implemented due to the lack of a reliable financing source. The government and its partners have also failed to finalise a formal agreement on the use of shared infrastructure such as jetties, pipelines, and other common facilities effectively paralysing even preliminary operations.

According to official sources, while TPTL was expected to rehabilitate at least a cluster of tanks and begin limited storage operations by 2024, work on the ground has barely begun. Only a few tanks have been earmarked for refurbishment, and bureaucratic indecision continues to stall progress. Despite repeated government assurances that the Trincomalee project is a national priority, the absence of funding, coordination, and leadership has left the project in limbo.

The potential of the tank farm remains immense. Trincomalee’s deep-water harbour is one of the finest in the region, ideally suited for oil storage and bunkering operations. A fully functional tank farm could make Sri Lanka a key petroleum logistics hub in the Indian Ocean, creating jobs, attracting foreign investment, and earning valuable foreign currency through exports.
Yet, the government’s passive approach and inability to convert policy into action risk turning this vital national asset into another missed opportunity. The Trincomalee oil tank farm could have been a cornerstone of Sri Lanka’s energy security and regional trade ambitions. Instead, it now stands as a symbol of bureaucratic inertia and short-sighted governance a project with vast potential, but little political will to see it through

November 11, Colombo (LNW): Sri Lanka’s stock market achieved a significant milestone yesterday (10) when the All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) surged past the 23,500 mark for the first time in its history.

At approximately 9:40 a.m., the ASPI peaked at 23,563 points, reflecting strong early trading momentum. Although the index slightly eased by the end of the session, it still closed at an impressive 23,502.59 points — a record finish for the local bourse.

Daily turnover stood at Rs. 7.5 billion, underscoring heightened investor participation and renewed confidence in the market.

Analysts noted that improved corporate earnings, stabilising macroeconomic conditions, and growing foreign interest have contributed to the positive sentiment driving the rally.

Market observers suggest that the breakthrough reflects a broader recovery in investor outlook, signalling optimism about Sri Lanka’s economic prospects as the nation continues to rebuild post-crisis and attract new capital inflows.