By: Staff Writer

May 11, Colombo (LNW): In a significant step toward strengthening Sri Lanka’s digital infrastructure, Mastercard and LankaPay have announced a strategic partnership aimed at expanding card issuance, improving digital payment adoption, and enhancing transaction security across the country.

The collaboration was officially unveiled at a high-profile event attended by senior executives from Mastercard and LankaPay, as well as representatives from top banks and fintech firms. The joint effort focuses on three core solutions: a co-branded debit card to promote financial inclusion, a low-cost QR payment system for tourists through Mastercard Pay Local, and Brighterion AI for real-time fraud detection.

The Mastercard-LankaPay co-branded debit card is designed to offer added value to consumers through a unified digital platform called Priceless Specials, providing exclusive offers. Cardholders will also gain access to Mastercard’s global Travel and Lifestyle Services, including concierge support and travel deals. Issuing banks can seamlessly incorporate the card into their existing systems, supporting Sri Lanka’s broader goals for digital transformation and increased customer engagement.

A key highlight of the partnership is the Mastercard Pay Local feature, which will enable inbound tourists to link their existing cards to the LankaPay app, allowing payments at over 400,000 LankaQR-enabled merchants. This will not only make spending easier for visitors but also encourage the digital transition of small and medium enterprises (SMEs), helping formalize tourism revenues and boost foreign exchange inflow.

To address growing concerns around cybersecurity, Mastercard’s Brighterion AI technology will be integrated into the LankaPay network. This cutting-edge solution uses real-time intelligence to assess fraud risk by analyzing complex data sets. With adaptive algorithms, Brighterion delivers fraud detection and risk scoring in real time, ensuring secure ATM and account-to-account transactions. This marks a first-of-its-kind AI-driven security layer within Sri Lanka’s payment ecosystem.

Speaking on the initiative, Sandun Hapugoda, Mastercard’s Country Manager for Sri Lanka and Maldives, emphasized the collaboration’s alignment with the nation’s digitization agenda, stating, “This three-fold approach will enhance accessibility, security, and innovation in Sri Lanka’s financial landscape.”

Echoing this sentiment, LankaPay CEO Channa de Silva noted the partnership’s long-term impact, saying, “This milestone is part of our ongoing mission to promote financial inclusivity. It not only strengthens the financial sector through improved security and value but also supports the tourism industry by simplifying payment experiences for travelers.”

The Mastercard-LankaPay alliance represents a significant leap forward in building a more secure, inclusive, and globally integrated digital economy for Sri Lanka.”

By: Staff Writer

May 11, Colombo (LNW): In a significant move to modernize its power infrastructure and ensure long-term energy security, Sri Lanka has secured international support to launch a comprehensive reform and development initiative targeting its electricity sector.

The effort is backed by policy-based financing from the Asian Development Bank (ADB) and other global partners, with a total commitment of $100 million under Subprogram 1 of ADB’s Power Sector Reforms and Financial Sustainability Program.

This initiative is part of ADB’s broader indicative budget support of $450 million for Sri Lanka in 2024. The power sector has been identified as a macro-critical area by the International Monetary Fund (IMF), and ADB remains the only international financial institution offering direct policy-based loan support to the sector — reaffirming its long-term engagement with Sri Lanka’s energy reforms.

The Cabinet of Ministers recently approved a new investment package to upgrade the country’s transmission network, framed under a partnership involving the ADB, the World Bank, and the International Development Institute, which also provides a risk guarantee facility. This package will fund 10 high-priority transmission projects outlined in the Ceylon Electricity Board’s (CEB) 2023–2032 long-term development plan.

“These projects are designed to enhance grid stability, accommodate growing energy demand, and support the integration of renewable energy sources,” said Cabinet Spokesman and Minister Dr. Nalinda Jayatissa during the weekly post-Cabinet briefing.

The proposal, submitted by Power Minister Kumara Jayakody, received Cabinet approval and is aligned with wider reforms embedded in the Sri Lanka Electricity Bill. Gazetted on April 17, 2024, the bill includes key provisions such as the unbundling of the CEB, the establishment of a new Electricity Council to oversee national planning and tariff policy, and stronger governance and independence for regulatory institutions.

Long-term objectives of the reforms include enabling private sector participation in generation and distribution through CEB successor entities, and introducing competitive market mechanisms like open access or ‘wheeling.’ This is expected to attract further investment in renewables and bring down electricity costs through competition.

The economic benefits of the program are far-reaching. By improving the sector’s creditworthiness and reducing its reliance on imported fuels, the reforms will unlock new renewable energy capacity and help make the power sector financially self-sufficient. This, in turn, will ease pressure on the national budget.

Moreover, increased transparency, performance incentives, and stronger regulation are expected to create a more efficient, cost-effective power sector — with gains for both consumers and businesses.

During the 2022 economic crisis, electricity sales fell by 4.6%, representing a loss of 694 gigawatt hours and an estimated $560 million cost to the economy. By mitigating future risks of load-shedding through increased capacity and financial stability, the reform program aims to prevent similar setbacks.

In addition to economic resilience, the program will deliver environmental benefits. CEB projections suggest that increasing the renewable share in the energy mix from 50% to 70% by 2030 could cut carbon emissions by approximately 4 million tonnes — translating into an estimated $190 million in social value.

The reforms signal a transformative step for Sri Lanka’s energy future, aiming for a more sustainable, reliable, and cost-effective electricity sector.

By: Staff Writer

May 11, Colombo (LNW): The United States has officially assumed the Presidency of the Colombo Plan Council, with US Ambassador to Sri Lanka Julie Chung taking over the role during a Special Session held on May 7, 2025. This annual rotating presidency, determined in alphabetical order among the 28 member states, was previously held by Thailand.

The Special Session in Colombo brought together high-level diplomats and officials, including outgoing Council President and Thai Ambassador Paitoon Mahapannaporn, Sri Lanka’s Deputy Foreign Minister Arun Hemachandra, and Indonesia’s Deputy Minister for Multilateral Cooperation, Tri Tharyat. The session was attended by 23 member states, with eight ambassadors and 15 deputy ambassadors participating, both in person and virtually.

The Colombo Plan Council consists of representatives from member states’ diplomatic missions based in Sri Lanka. Since 2020, virtual participation has enabled broader engagement from members located outside Colombo. The Council convenes quarterly to discuss the organization’s strategic direction and ongoing initiatives.

The United States holds a unique position within the Colombo Plan as the first non-Commonwealth country to join the organization in 1951. It has since been a strong supporter of Sri Lanka’s development efforts, particularly in the ports sector, by contributing technical assistance and counter-narcotics programming aimed at improving security and operational efficiency.

As the Colombo Plan prepares to celebrate its 75th anniversary in 2026, Ambassador Chung’s leadership is expected to guide both the commemorative activities and the organization’s evolving strategic vision. The milestone marks a significant chapter in the history of one of Asia-Pacific’s oldest regional intergovernmental bodies.

Founded on July 1, 1951, the Colombo Plan was established to promote cooperative economic and social development across Asia and the Pacific. Its origins trace back to the Commonwealth Foreign Ministers’ Conference held in Colombo in January 1950.

There, Sri Lankan Finance Minister J.R. Jayewardene and Australian Foreign Minister Sir Percy Spencer jointly championed the idea of a ten-year development program for Southeast Asia, laying the groundwork for the Plan.

Initially supported by seven nations—Australia, Canada, India, Pakistan, New Zealand, Sri Lanka, and the UK—the Colombo Plan has since expanded to include 28 member countries, including non-Commonwealth and regional partners such as ASEAN and SAARC members.

The Colombo Plan continues to function as a partnership for mutual and self-help among member countries, promoting socio-economic development, technical cooperation, and the exchange of knowledge. Its highest governing body, the Consultative Committee, meets biennially to review progress and address current development challenges across the region.

With new leadership at the helm and a historic anniversary on the horizon, the Colombo Plan looks set to reaffirm its commitment to regional cooperation and development.

By: Staff Writer

May 11, Colombo (LNW): Sri Lanka’s solar power industry is raising alarm over a potential collapse in the renewable energy sector unless urgent policy reforms are introduced.

In a comprehensive submission to the Public Utilities Commission of Sri Lanka (PUCSL), the Solar Industries Association (SIA) has warned that flawed regulations, poor policy decisions, and misinformation are undermining investor confidence and threatening the future of solar energy in the country.

With over 1.5 GWp of solar PV capacity already installed, the sector has contributed significantly to national energy savings. However, the SIA claims the current regulatory environment is creating instability, jeopardising further development, and endangering tens of thousands of jobs.

Central to the Association’s concerns are what it describes as “unprofessional” and inaccurate recommendations influencing policymaking.

The SIA accuses recent Cabinet proposals of relying on faulty data, particularly exaggerated plant load factor (PLF) assumptions. While actual solar performance averages between 13–14%, official models use a 16% benchmark, skewing tariff calculations and deterring investment.

The disparity in tariffs between rooftop and ground-mounted systems is another sticking point. Rooftop solar accounts for 88% of the country’s solar output, yet it is being financially penalised. The SIA argues that these policies are not only arbitrary but detrimental to the most cost-effective segment of solar generation.

The 2024 Electricity Act, initially passed to accelerate renewable energy deployment, is also under threat, according to the submission. The SIA claims there has been a deliberate slowdown in renewables, highlighted by the approval of a second LNG plant, allegedly based on misleading data that contradicts least-cost energy principles.

Solar developers are also grappling with operational setbacks, including uncontracted energy curtailments—where their power output is restricted without compensation. The Association proposes tariff-based incentives for such curtailments and calls for an audit of curtailment data to ensure transparency.

The lack of battery storage tariffs, outdated grid infrastructure, and delays in implementing smart meters and power wheeling further complicate the industry’s challenges. The SIA emphasises that energy storage should be considered essential infrastructure, and urges the immediate rollout of smart meters for improved grid management.

Investor uncertainty has been heightened by frequent, unexplained tariff changes and ambiguity around the Net Plus scheme. The SIA warns that a proposed cut to feed-in tariffs could decimate the SME-led solar sector and result in the loss of around 40,000 jobs. Over 100,000 rooftop systems, mainly owned by middle-income families, risk becoming economically unviable.

Compounding the crisis, the solar industry has been unfairly blamed for the nationwide blackout on 9 February 2025, despite no supporting evidence.

The SIA concludes with urgent calls for rational tariff reforms, compensation for curtailment, transparent policymaking, and the restoration of supportive programs like the Net Plus Plus scheme. “Swift action is critical,” the SIA said, “Solar energy is central to Sri Lanka’s sustainable development and energy future.

May 11, Colombo (LNW): For the first time in its history, the influential global think tank, the Millennium Project, has appointed a Sri Lankan to its Board of Directors.

Asanga Abeyagoonasekera, a well-known strategist and regional policy expert, has been named an Ex-officio board member in recognition of his exceptional work advancing foresight initiatives in South Asia.

This milestone appointment not only highlights Abeyagoonasekera’s growing international standing but also reflects the increasing relevance of South Asian perspectives in global future-oriented policy discourse.

He first joined the Millennium Project in 2022 as a Senior Fellow and currently leads the South Asia Foresight Network (SAFN), an initiative committed to building strategic foresight capacity and regional collaboration across the subcontinent.

Abeyagoonasekera brings to the board a wealth of experience from his tenure in key governmental and diplomatic roles in Sri Lanka.

He served as Director General of the Institute of National Security Studies (INSS), operating under the Ministry of Defence, and as Executive Director of the Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), where he helped shape national and regional policy dialogues.

Founded in 1996 with origins linked to the American Council for the United Nations University, the Millennium Project has evolved into a leading international non-profit dedicated to long-range future research and scenario building.

With 72 globally connected Nodes, the think tank fosters multidisciplinary insight into pressing global challenges, from emerging technologies to climate change and governance.

The organisation’s current focus areas include governance frameworks for Artificial General Intelligence (AGI) and its influential “State of the Future” reports, which are widely referenced in both academic and policy-making circles.

SAFN, under Abeyagoonasekera’s leadership, has contributed to enhancing regional participation in such discussions, especially from South Asia—an area traditionally underrepresented in global foresight agendas.

May 11, Colombo (LNW): Sri Lanka’s port city, despite having 100% foreign ownership, sound regulations, and first-class infrastructure, has not been able to fully tap its investment potential due to delays in approval, slow progress in regulatory development, and a lack of government-led international promotion, the Sri Lankan media commented.

At present, investors in the Middle East are seeking opportunities for “South-South cooperation.” “If the Sri Lankan government continues to act slowly, it may hand over a large number of potential investment opportunities to the Maldives and emerging economic special zones in eastern Africa.”

Commentators believe that the government must take decisive measures to accelerate the facilitation of cross-border investment, demonstrate construction progress, ensure policy continuity, and revitalize the confidence of international investors. The Port City has the potential to be the engine of Sri Lanka’s economy, but without government-level promotion and publicity, the project may become a textbook example of “missed opportunities.”

Although Sri Lanka has a stronger foundation, if it does not show a “truly open” attitude, the Maldives will take the opportunity to attract more investment. At present, there are several flagship projects launched in Port City, the government should show its value proposition as early as possible to gain competitive advantages in the region. The World Bank predicts that Maldives’ GDP will grow by 5.7% in 2025.