A landmark national initiative titled the ‘4i Project’, aimed at developing 1,000 young and small-scale entrepreneurs across Sri Lanka, was launched last week by the Ministry of Industry and Entrepreneurship Development in collaboration with the National Productivity Secretariat and other government agencies.

Industry and Entrepreneurship Development Minister Sunil Handunneththi said the program is designed to empower youth and Small and Medium Enterprises (SMEs) by strengthening their capacity to innovate, compete, and contribute to national growth. “The initiative is open to both emerging and existing SMEs with over three years of operation and at least ten employees,” he explained, noting that the project primarily targets production-based businesses across selected districts.

The 4i Project, according to Deputy Minister Chathuranga Abeysinghe, stands for four key stages of enterprise growth—Initiation, Ideation, Integration, and Implementation. “It’s not merely about starting businesses, but about building efficient, innovative, and globally competitive enterprises,” he said, adding that Sri Lanka’s low productivity has been a key factor behind economic stagnation. The initiative, he asserted, is expected to boost national productivity by up to 52% in the coming years.

Outlining the broader vision, Ministry Secretary J.M. Thilaka Jayasundara said the program aligns with the government’s long-term plan to transform Sri Lanka into a manufacturing-driven economy by 2030. Currently, the manufacturing sector contributes about 16.1% to GDP, and the goal is to raise this to 20% through the empowerment of SMEs. “The 4i Project is central to this transition enhancing local entrepreneurs’ knowledge, skills, productivity, and export readiness,” she emphasized.

Initially launched as a pilot project in the Gampaha District, its success prompted an islandwide rollout. The project has already screened over 968 applications from 17 districts, out of which 504 outstanding entrepreneurs were selected for the first phase. The remaining eight districts are expected to be covered by mid-2026, completing the target of 1,000 participants.

 W.M.D. Suranga Gunaratna, Director of Public Enterprises, described the program as a vital step in strengthening Sri Lanka’s SME sector by providing advisory support, training, and financial guidance for sustainable growth. He revealed that several districts have already requested inclusion in the next phase, reflecting the growing enthusiasm among young entrepreneurs.

The launch ceremony featured the presentation of appointment letters to selected entrepreneurs, along with a panel discussion on lessons from the Gampaha pilot phase. Government officials, local representatives, and industry leaders attended the event, marking what Minister Handunneththi called “a new chapter in Sri Lanka’s entrepreneurial journey one driven by innovation, inclusion, and industrial growth.”

Sri Lanka’s digital economy has reached an estimated Rs. 1,342 billion, accounting for 4.5% of the nation’s GDP, according to the Institute of Policy Studies (IPS) in its State of the Economy 2025 report. The study underscores the expanding role of digital technologies in reshaping trade, services, and employment, marking a major milestone in the country’s transition toward a technology-driven economy.

The IPS highlights that digital businesses and online platforms are propelling innovation, reducing transaction costs, and enhancing productivity across industries. The report identifies information and communication services as a leading growth driver, contributing Rs. 606.7 billion, or 2.03% of GDP, while e-commerce now accounts for Rs. 735.2 billion, or 2.47% of GDP.

According to the report, Sri Lanka’s shift toward digitalization gained momentum during the COVID-19 pandemic, which accelerated demand for online solutions, remote work, and e-services. The ICT-BPO sector—a core pillar of the digital economy has grown exponentially since 2015, with the number of firms tripling and the workforce doubling to over 124,000 by 2018.

The IPS projects the sector will employ 300,000 professionals by 2025 and generate $2 billion in export earnings, while supporting over 1,000 tech startups and creating a competitive edge in the regional digital marketplace.

E-commerce, in particular, has emerged as a powerful growth engine. In 2024, Sri Lankans spent Rs. 367.8 billion through debit and credit card-based transactions, while the total e-commerce market value including cash payments was estimated at Rs. 735.2 billion. The IPS projects a 10.8% annual growth rate, with the market expected to reach $3.9 billion by 2029.

The report notes that 52% of internet users now make online purchases at least once a month, signaling a significant shift in consumer habits. Digital advertising has become a key influence—58% of users said they made purchases after seeing online ads. The most popular product categories include clothing (43%), personal care and beauty (23%), and electronics (22%).

Beyond retail, e-services such as online education, food delivery, transport, healthcare, and government transactions are rapidly transforming daily life. The e-services market is expected to grow 15.7% annually, reaching $1.9 billion and attracting 6.4 million users by 2029. User penetration is forecast to hit 23% of the population by 2025, driven by rising internet access and smartphone usage.

The IPS concludes that digital transformation will be central to Sri Lanka’s economic recovery and modernization. “The continued evolution of e-commerce and e-services will enhance efficiency, improve service delivery, and promote inclusive growth,” the report states.However, economists warn that to sustain this momentum, Sri Lanka must strengthen digital infrastructure, cybersecurity, and policy consistency, ensuring that its fast-growing digital economy remains both inclusive and globally competitive

World Bank representatives have underscored the importance of maintaining an accurate and regularly updated data system to ensure the fair and effective selection of beneficiaries under Sri Lanka’s Aswesuma Social Security Programme.

They affirmed the World Bank’s readiness to provide technical assistance and international expertise to support this process.

These observations were made during a joint meeting held at Parliament recently, attended by members of the Ministerial Consultative Committee on Finance, Planning and Economic Development, the Sectoral Oversight Committee on Economic Development and International Relations, other Members of Parliament, officials from the Ministry of Finance, Economic Stabilisation and National Policies, and representatives of the World Bank.

The meeting was chaired by Rural Development, Social Empowerment and Welfare Minister Dr. Upali Pannilageand Sectoral Oversight Committee Chairperson MP Attorney Lakmali Hemachandra. The World Bank delegation included Senior Economist for the Social Security Project Francesca Lamanna and Senior Social Security Specialist Srinivas Varadan, among others.

During the discussions, World Bank representatives emphasised that a comprehensive, data-driven social security system is essential for accurately identifying genuinely poor and vulnerable households. They clarified that inclusion in the national database alone does not guarantee eligibility for benefits; all data must be verified and analysed to ensure fairness and precision.

They further highlighted that a well-maintained and continuously updated data system is a productive long-term investment that strengthens the integrity and sustainability of Sri Lanka’s social protection framework.

Several MPs also shared their observations on challenges faced in the distribution of Aswesuma benefits, proposing that local-level committees be involved in selecting beneficiaries and that the final lists be publicly displayed within each village to ensure transparency.

Officials involved in implementing the Aswesuma programme acknowledged that certain difficulties had arisen due to insufficient information provided to implementing officers, Divisional Secretaries, and Grama Niladhari officers. However, they assured that measures are being taken to improve awareness and coordination among all stakeholders to ensure smooth implementation.

The meeting was also attended by Opposition Leader Sajith Premadasa, several Ministers, Deputy Ministers, and MPs, along with World Bank Advisor Shalika Subasinghe and senior officials from the Finance Ministry.

Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath announced that the government has initiated steps to grant voting rights to Sri Lankans living overseas, marking a major milestone in ensuring greater democratic participation for the Sri Lankan diaspora.

The Minister said that arrangements are being made in collaboration with the Ministry of Public Administration, and that a special committee has already been appointed to create the necessary legal and procedural framework to realize this long-awaited objective.

He added that a United Nations delegation had recently visited Sri Lanka for discussions on electoral reforms, during which steps were explored to enable Sri Lankans living abroad to exercise their voting rights in future elections.

Minister Herath further revealed that the government is also working to establish a new contributory pension systemfor Sri Lankans employed overseas.

“The existing system is not effective enough. We are designing a new model through which workers can receive higher pension benefits. The scheme will utilize funds from the Social Services Department, and the necessary legal mechanisms are being prepared,” he explained.

The Minister made these remarks while attending a ceremony held yesterday (27) at the Ministry of Foreign Affairs, Foreign Employment and Tourism to mark the 40th anniversary of the Sri Lanka Bureau of Foreign Employment (SLBFE). A special commemorative cover was also issued to mark the occasion.

Commenting on employment opportunities in Israel, Minister Herath said that an increasing number of Sri Lankans are being deployed for jobs there through the SLBFE.

“There have been allegations that the Bureau is not managing this programme properly, but this is a misunderstanding. The selection process is handled entirely by the Population and Immigration Authority (PIBA) of Israel, not by us. The system is transparent, and political interference in job allocations has been completely eliminated,” he stated.

He cautioned job seekers not to make any payments to unauthorized agents or intermediaries, emphasizing that the SLBFE has introduced a digital system to ensure transparency in fees and recruitment.

“If anyone demands additional payments for foreign employment, the Bureau must be informed immediately. We have already taken legal action against several agencies that misappropriated money,” the Minister said.

Minister Herath also disclosed that a new Bill is being drafted to address legal gaps in the SLBFE Act, which currently limits the Bureau’s ability to take legal action against agencies that defraud job seekers, particularly those offering employment in countries such as Romania.

“This new law will enable stronger enforcement and better protection for Sri Lankans seeking overseas employment,” he added.

A new gazette notification, issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Economic Stabilization and National Policies, has introduced stricter procedures and deadlines for the payment of excise taxes and fees on liquor production.

The regulations, which came into effect today (28), amend key provisions under Section 22 of the Excise Ordinance to ensure timely tax compliance by licensed manufacturers.

Under the new rules, every license holder must pay the required excise tax on or before the specified date. Failure to make full payment within 30 days of the prescribed date will result in the suspension of the bottling license of the respective licensee.

According to the Excise Department, this regulation is being implemented for the first time as a new legal provisionaimed at strengthening enforcement.

The gazette further stipulates that if a license holder fails to pay the due tax or fees within 90 days, all licenses held by that individual will be suspended.

Previously, the suspension period for non-payment was six months, but the new regulations have reduced it to three months, the department said.

The Excise Department added that the revised payment deadlines were introduced to minimize tax evasion and enhance overall compliance among liquor license holders.

Several spells of showers will occur in Western, Sabaragamuwa, Central and North-western provinces.

A few showers may occur in Northern province and in Anuradhapura district.
Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in Western, Sabaragamuwa, Central, Southern, Northern, North-central and North-western provinces and in Trincomalee and Batticaloa districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by strong winds.