By: Staff Writer

April 08, Colombo (LNW): In 2024, Sri Lanka continued its path of steady economic recovery after experiencing its worst economic crisis two years prior. Despite the difficulties, the pace of recovery was faster than that seen in most debt-ridden nations, Central Bank’s annual economic review report for 2024  revealed.

 Reforms implemented following the crisis began to yield positive outcomes. Economic activity picked up, purchasing power partially improved, and uncertainties started to fade—especially those related to the elections, which lessened as the government showed clear intent to continue reforms and maintain consistent policies.

A major turning point came with the near-finalization of external debt restructuring and the country’s removal from its restricted default credit rating, which significantly boosted confidence among investors and stakeholders.

Sri Lanka’s economic growth surpassed expectations in 2024. Inflation, which had been a concern, eased and even transitioned into deflation by September, mainly due to declining energy prices. This pushed inflation below the Central Bank’s target.

With interest rates remaining low, lending to both households and businesses increased, helping to revive domestic economic activity and regain ground lost during the pandemic and prior crisis.

On the external front, Sri Lanka’s performance was robust. The country saw stronger foreign exchange inflows and a surplus in its current account. The rupee appreciated under a flexible exchange rate policy, lowering import prices and benefiting consumers, though it slightly hurt export earnings. The fiscal sector also saw improvement, with the primary budget balance in surplus for the second year running.

The Central Bank focused on maintaining both price and financial system stability. Continuing with the Flexible Inflation Targeting framework, it kept monetary policy accommodative due to the subdued inflation outlook.

With external conditions improving, restrictions on imports and capital flows were gradually lifted. Financial sector stability was further supported by the Banking (Amendment) Act, which improved bank governance. Regulatory steps were also taken to enhance risk management and corporate governance.

The establishment of business revival units in banks aimed to help micro, small, and medium-sized enterprises (MSMEs). Efforts to boost financial literacy, inclusion, and digital banking services were also ramped up.

The crisis of 2022 had revealed deep structural flaws in Sri Lanka’s economy. The reform agenda since then has aimed at fixing these issues while maintaining fiscal discipline for long-term debt sustainability.

The government prioritized support for the vulnerable through social protection programs and began addressing corruption vulnerabilities. With inflation and interest rates low, and the financial sector stable, conditions are favorable for future growth. Positive market sentiment and political stability have further enhanced the economic outlook.

 However, global uncertainties—such as proposed U.S. tariffs—could pose risks to Sri Lanka’s external sector. This makes it vital to maintain prudent policymaking and build stronger fiscal and external reserves.

In summary, Sri Lanka’s recovery in 2024 was driven by bold reforms, prudent policies, and international support, including the IMF-EFF programme. Although substantial progress has been made, the country’s continued success depends on a strong commitment to structural reforms that ensure long-term prosperity for all its people.

By: Staff Writer

April 08, Colombo (LNW): As Sri Lanka’s IT industry continues its steady rise on the global stage, one of its foremost technology companies, MillenniumIT ESP, has marked a significant milestone by expanding operations into Australia. This move marks the firm’s fifth international location, underscoring both the growing global demand for Sri Lankan tech expertise and the nation’s emergence as a regional innovation hub.

Sri Lanka’s IT and BPM (Business Process Management) sector has shown strong momentum in recent years, driven by a skilled workforce, cost-effective solutions, and a maturing digital infrastructure. Industry bodies such as SLASSCOM have highlighted the country’s potential to generate over US$ 5 billion in IT exports by 2030. MillenniumIT ESP’s latest expansion is a clear example of this upward trajectory and the international confidence in Sri Lankan technology service providers.

MillenniumIT ESP’s entrance into the Australian market is a strategic initiative aimed at accelerating digital transformation and forging strong local partnerships across the region. The company, known for delivering end-to-end IT solutions, brings decades of global experience to Australian businesses, helping them adapt and thrive in an increasingly digital-first environment.

“Expanding into Australia is a significant milestone in our journey as a global technology solutions provider,” said Shevan Goonetilleke, CEO of MillenniumIT ESP. “With our expertise and commitment to innovation, we aim to deliver high-impact IT solutions that empower businesses in their digital transformation efforts. We look forward to building strong local partnerships and making a lasting impact in the Australian market.”

Headquartered in Colombo, Sri Lanka, MillenniumIT ESP boasts nearly 30 years of experience in the tech industry, with over 2,000 successfully delivered projects and a clientele of more than 500 organizations worldwide. In addition to its presence in Sri Lanka, the company has operations in Bangladesh, Singapore, Dubai, and now Australia, along with a state-of-the-art Global Service Delivery Centre at Port City Colombo.

The company’s service portfolio spans infrastructure platforms, cybersecurity, managed services, software development, cloud solutions, automation, and advanced network technologies. It caters to a broad range of sectors including telecommunications, banking and finance, manufacturing, government, retail, and more.

Analysts view this move as a timely one, with Australia’s digital economy projected to be worth over AU$250 billion by 2030. MillenniumIT ESP’s arrival offers Australian enterprises a new partner equipped with global know-how and a unique value proposition grounded in agility, innovation, and affordability.

This expansion also sends a strong message about the capabilities of Sri Lanka’s technology sector, which continues to produce firms ready to compete and collaborate on the world stage. With increasing interest from global investors and growing demand for tech talent, Sri Lanka’s IT industry appears poised for a defining decade.

By: Staff Writer

April 08, Colombo (LNW): The Sri Lankan government, private sector, and civil society organizations have formed a strategic alliance to enhance integrity, transparency, and accountability across the business landscape. This collaboration emphasizes shared objectives, capacity development, and the use of data-driven strategies to build a culture of ethical practices.

A key initiative is to create a common understanding of these values within the private sector, with clear, measurable goals. A joint framework will define stakeholder roles, responsibilities, and methods of cooperation to ensure coordinated and accountable actions.

Transparency International Sri Lanka (TISL) and the International Chamber of Commerce Sri Lanka (ICCSL) formalized their partnership through a Memorandum of Understanding (MoU), signed at ICCSL’s premises.

This MoU enables the government to support ethical training for private sector leaders and employees, focusing on anti-corruption, regulatory compliance, and the implementation of effective internal controls such as whistleblower systems and independent audits.

The agreement also encourages open data sharing among government bodies, businesses, and civil society, enhancing transparency and oversight. Recognizing the importance of ethical business for economic development, the MoU outlines a cooperative structure between TISL and ICCSL to combat corruption risks, promote best practices, and strengthen compliance, especially among small and medium enterprises (SMEs).

Key goals include exchanging knowledge on integrity and anti-corruption efforts, launching joint advocacy to raise awareness of corruption’s impact, and building business capacity to maintain strong ethical standards. The partnership will also include co-hosted events, training, and the publication of educational resources and reports.

By involving civil society in performance monitoring and establishing protections for whistleblowers, the initiative aims to reinforce accountability and improve the legal framework governing corporate conduct. Overall, the partnership seeks to foster a transparent, ethical, and resilient business environment in Sri Lanka.

It will engage civil society organizations in the monitoring and evaluation of private sector performance, ensuring that there are independent voices advocating for accountability.

A robust mechanisms will be established for protecting whistleblowers who report unethical or illegal activities within the private sector.

This will strengthen the legal and regulatory framework to ensure that private sector entities are held accountable for their actions and that there are effective mechanisms for addressing violations.

It will ensure a level playing field for all businesses, preventing corruption and unfair competition that can undermine integrity and transparency.

By fostering a strategic partnership that addresses these key areas, Sri Lanka can create a more resilient and accountable private sector that contributes to sustainable economic growth and development.

April 08, Colombo (LNW): Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) saw a notable uptick on Tuesday as investor sentiment strengthened following the formal launch of operations at the newly built Colombo West International Terminal (CWIT) in Sri Lanka.

The stock rose 3.6 per cent during intraday trading on the Bombay Stock Exchange, reaching Rs. 1,151.95.

The terminal, located within the Port of Colombo, marks a significant milestone in regional infrastructure collaboration, developed under a tripartite public-private initiative involving India’s Adani Ports, Sri Lanka’s leading conglomerate John Keells Holdings PLC, and the Sri Lanka Ports Authority.

Conceived in 2022 and backed by an investment of approximately $800 million, the CWIT boasts a quay length of 1,400 metres and a berth depth of 20 metres, making it one of the most technically advanced maritime facilities in the region.

Once fully operational, the terminal is expected to process around 3.2 million twenty-foot equivalent units (TEUs) annually.

What sets CWIT apart is its distinction as Colombo’s first fully automated deep-water terminal, designed to drastically reduce vessel turnaround time and enhance the port’s handling efficiency.

This technological edge is anticipated to position the Sri Lankan capital as a formidable contender in the transshipment trade across South Asia and the wider Indian Ocean region.

Gautam Adani, Chairman of the Adani Group, hailed the commencement of operations as a landmark achievement, describing the terminal as “a symbol of deeper regional integration and a testament to what strategic partnerships can achieve in maritime infrastructure.”

He added that the development would bolster Sri Lanka’s role in global trade, establishing it firmly on the world’s maritime map.

Krishan Balendra, Chairperson of the John Keells Group, echoed the sentiment, stressing the strategic value of the terminal in shaping the country’s economic trajectory.

He noted that the success of the joint venture reflects Sri Lanka’s potential to become a key transshipment node, particularly for cargo flowing between East Asia, Africa, and the Middle East.

Despite recent volatility in the broader market, APSEZ has drawn renewed interest from investors. Analysts, citing data from Trendlyne, project an average target share price of Rs. 1,541, indicating a potential upside of 39 per cent from current levels. Market sentiment remains strong, with 15 analysts collectively rating the stock a ‘Strong Buy’.

However, the company’s stock has experienced headwinds over the past year, with a decline of 19 per cent year-on-year and a 9 per cent dip since the beginning of 2025.

Nevertheless, its current market capitalisation stands robust at around Rs. 2.4 lakh crore, reflecting continued investor confidence in its long-term growth strategy.