By: Staff Writer

June 15, Colombo (LNW): The Credit Information Bureau of Sri Lanka (CRIB), South Asia’s pioneering credit bureau, has unveiled a sweeping digital transformation roadmap aimed at enhancing financial inclusion and modernising the country’s credit ecosystem. 

Key initiatives include the rollout of a dynamic credit score for Small and Medium Enterprises (SMEs), the launch of innovative digital tools, and expansion into underserved, unbanked population segments.

CRIB plans to replace its 15-year-old legacy system with a new state-of-the-art digital credit bureau platform, in collaboration with a top-tier international credit bureau service provider. This transition, though complex and time-consuming, aims to transfer vast amounts of existing borrower data seamlessly, ensuring accuracy and minimal disruption for users.

A senior finance ministry official stated that the upgrade reflects CRIB’s shift from being merely a credit data repository to a fully digitised, proactive agency. Among the upcoming features is a new credit rating classification system, adding depth to the existing credit score reports currently offered.

As part of this transformation, CRIB introduced several digital tools at its annual event. These include a Portfolio Management platform, offering banks and finance companies real-time insights for managing large credit portfolios, and Credit Stat, a monthly analytical tool detailing institutional risk exposure and credit performance metrics. 

A CRIB mobile app is also under development to enhance consumer access.

According to current statistics, CRIB’s coverage includes 46.5% of Sri Lanka’s adult population — about 6.3 million individuals and over 212,000 businesses. 

Borrowers are now evaluated using a points-based credit scoring system, ranging from 250 to 900, with higher scores indicating lower credit risk. The bureau has also doubled its data volume in the past eight months by integrating gold loans, pawning, margin trading, and factoring into its database.

CRIB Director and General Manager Pushpika Jayasundera described 2024 as a “transformative year,” highlighting the agency’s evolution towards becoming a data-driven entity aligned with global standards. 

In July, CRIB is set to launch a Secure Transaction Registry, enabling SMEs and underbanked individuals to use movable assets as collateral—further supporting financial inclusion and credit accessibility.

CRIB is also strengthening ties with regional counterparts like India, Indonesia, the Philippines, and Taiwan to develop dynamic cross-border credit products and support migrant workers and foreign investors.

Central Bank Governor Dr. Nandalal Weerasinghe, the event’s Chief Guest, commended CRIB’s advancements in bridging information gaps between lenders and borrowers.

 He stressed the importance of empowering SMEs and improving the bankability of small-scale borrowers, noting that tools like those launched by CRIB can support evidence-based policy decisions and a broader digital financial ecosystem.

 Several financial institutions were also recognised for their excellence in data sharing with CRIB, underlining the growing importance of collaboration in Sri Lanka’s evolving financial landscape.

By: Staff Writer

June 15, Colombo (LNW): Sri Lanka’s apparel sector is gaining new momentum through a renewed focus on social compliance, highlighted by a recently concluded GTEX Workshop held in Colombo.

Organized by the International Trade Centre (ITC) with support from the Swiss Embassy, the full-day event at the Galle Face Hotel aimed to equip the country’s apparel exporters with the knowledge and tools needed to meet evolving global compliance standards.

The workshop was held under the Global Textiles and Clothing Programme (GTEX II), which is funded by Switzerland’s State Secretariat for Economic Affairs (SECO) and the Swedish International Development Cooperation Agency (SIDA), in partnership with the Export Development Board (EDB) and ITC.

Bringing together top apparel exporters, compliance professionals, and policymakers, the event focused on enhancing the industry’s understanding of global regulatory frameworks and offered actionable strategies to boost social compliance performance.

Key industry representatives, including ITC’s Head of Textiles Matthias Knappe, Swiss Embassy Deputy Head Olivier Praz, EDB Chairman Mangala Wijesinghe, and Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence, emphasized the vital role of compliance in maintaining global market competitiveness.

Despite the global challenges and crises impacting Sri Lanka’s traditional markets, the country’s apparel exports recorded $4.7 billion in 2023, marking a 5% increase from the previous year — although still falling short of the $5.3 billion achieved in 2019.

The workshop featured an in-depth presentation on global compliance trends by ITC’s Social Compliance Lead Eranthi Premaratne, covering international frameworks such as the Social & Labor Convergence Program (SLCP), Worldwide Responsible Accredited Production (WRAP), and the Ethical Trading Initiative (ETI).

Case studies from industry leaders MAS Holdings and Brandix Apparel highlighted local success stories in integrating sustainability and social responsibility into business practices. An interactive session led by the Centre for Lean Excellence allowed participants to collaboratively address recurring factory-level compliance issues.

Participants also benefited from a hands-on training on compliance management systems, aimed at strengthening internal audit processes and supplier monitoring. ITC GTEX’s Navya Wijewickrema introduced the Global Textile Academy, which offers digital learning tools for continuous upskilling in compliance.

In their closing remarks, Knappe and GTEX SL National Project Coordinator Roshan Peries reaffirmed ITC’s ongoing support for Sri Lanka’s apparel exporters in meeting international standards while promoting inclusive growth and decent working conditions.

The event served as a crucial step toward reinforcing Sri Lanka’s reputation as a socially responsible and ethical manufacturing hub. To remain competitive, the country must invest in workforce upskilling, adopt advanced technologies including AI, and secure strategic free trade agreements. 

While regional rivals like Bangladesh and Vietnam are advancing rapidly, Sri Lanka retains a competitive edge due to its strong track record in ethical manufacturing, sustainability, and governance — attributes increasingly valued by global buyers.

By: Staff Writer

June 15, Colombo (LNW): The International Monetary Fund (IMF) has expressed concern over Sri Lanka’s electricity tariff structure, highlighting it as a critical component in the country’s ongoing economic reform program. As part of the prerequisites for its $344 million funding tranche, the IMF is urging the government to adopt cost-reflective electricity pricing to support fiscal stability and facilitate debt restructuring.

According to IMF Communications Director Julie Kozack, the organization is currently assessing two key actions taken by the Public Utilities Commission of Sri Lanka (PUCSL): a 15% electricity tariff increase and the publication of revised bulk supply transaction account guidelines. These moves are among the structural benchmarks required for the IMF’s next disbursement.

At the heart of the issue is the Ceylon Electricity Board’s (CEB) deteriorating financial position. Official filings reveal a looming revenue shortfall of Rs 42.2 billion in early 2025. Despite a 15% tariff hike already approved for June 2024, internal projections show this measure is insufficient to bridge the deficit, prompting the CEB to request an additional 18.3% increase in tariffs for 2025.

Data shows that for the June–December 2024 period, CEB’s total approved cost stands at Rs 279.2 billion, while revenue under the current tariff regime is estimated at just Rs 234.4 billion. Even after accounting for Rs 11.9 billion in excess revenue from bulk supply transactions, the deficit remains at Rs 32.9 billion. The gap is expected to widen further in the first quarter of 2025, with an additional Rs 8.3 billion shortfall.

A major controversy surrounds the CEB’s handling of a Rs 38 billion clawback aimed at offsetting its excessive profits in the first half of 2024 — later revised to Rs 41 billion by PUCSL. In its latest filing, the CEB is attempting to recoup Rs 18.5 billion of this clawback by charging consumers again, effectively reversing the earlier adjustment. Simultaneously, the utility is proposing another Rs 11.8 billion clawback for the second half of 2025, creating confusion over the logic of its pricing mechanisms.

When the reversed clawback is excluded — as it contradicts tariff guidelines — the projected revenue deficit drops from Rs 42.2 billion to Rs 23.7 billion, indicating that only a 10% tariff hike would be justifiable under current cost assumptions.

Energy sector officials argue that the current tariffs are inadequate to cover rising costs in power generation, transmission, and distribution. Core cost drivers include Rs 201.6 billion for energy and capacity, Rs 63.5 billion for transmission and distribution, and Rs 14.1 billion in finance charges. These are being compounded by escalating global energy prices and loan servicing obligations.

While another tariff increase could stabilize the CEB’s finances, it is likely to trigger backlash from industrial users and households already grappling with inflation and high input costs. Experts warn that without phased and transparent pricing reforms, the utility’s sustainability — and the broader energy sector’s stability — remain at risk.

June 15, Colombo (LNW): Sri Lanka has continued to witness steady growth in tourist arrivals this year, with almost 44,000 international visitors having entered the country in the first half of June alone.

Figures released by the Sri Lanka Tourism Development Authority (SLTDA) indicate that 43,962 travellers arrived during this two-week period, adding momentum to what appears to be a robust recovery for the island’s tourism sector.

India remains the leading contributor to inbound tourism, accounting for 12,362 arrivals in June so far—approximately 28.1 per cent of the total. This figure not only highlights the enduring importance of Sri Lanka’s neighbour as a tourism partner but also reflects the broader trend of regional travel resurgence following years of pandemic-related disruption.

Other significant source markets include the United Kingdom with 3,740 arrivals, followed by Bangladesh (2,717), Germany (2,439), and China (2,403), indicating a diverse range of traveller interest from both within Asia and across Europe.

These figures underscore the country’s ongoing appeal as a multi-faceted destination catering to beachgoers, cultural tourists, and nature enthusiasts alike.

The cumulative number of foreign visitors to Sri Lanka for the year 2025 now stands at 1,073,765—a notable achievement considering the global headwinds still affecting the travel industry, including inflationary pressures, fluctuating fuel costs, and geopolitical tensions in key markets.

India again tops the list of countries sending the highest number of visitors to Sri Lanka this year, with 216,422 Indian nationals recorded as having entered the country so far. Russia follows with 111,285 visitors, reflecting a continued interest in Sri Lanka among Russian travellers, particularly during their colder months. The United Kingdom ranks third, contributing 100,014 tourists so far in 2025.

Officials have also indicated an increased focus on improving visitor experience, ranging from streamlined visa services to enhanced security and cleanliness at major tourist hotspots. Stakeholders in the tourism sector are optimistic that this year could surpass previous recovery benchmarks, further cementing the industry’s role as a crucial pillar of the national economy.