December 06, (LNW) Colombo:
Despite our consistent demonstration that the decisions made by
the Director General of the Department of Sports Development
concerning Sri Lanka Rugby were flawed, he has been compelled
to withdraw his actions following a court order that prevented his
official appointment as the administrator of Sri Lanka Rugby.
The previous rugby administration was dissolved on the grounds
of failing to hold the election on time, after which the Director
General was appointed as the governing authority. His ongoing
interference in rugby, including the reappointment of the former
chairman as a resource person, is highly unethical.
The unfortunate part is that he took no steps to rectify any of those
decisions. Instead of pursuing meaningful and ethical solutions,
he sought to further abuse his power by attempting to alter the
rugby constitution. We have previously noted that his actions bear
some resemblance to the behavior when ‘King Yasa’ temporarily
transferred his throne to the gatekeeper named ‘Suba’. That
example would be fitting for his attempt to destroy the existing
rugby constitution from his position of power, instead of guiding
those constitutionally empowered to make decisions in rugby to
act in accordance with the advice of World Rugby.
The frustration of those who were excluded from voting in the
Rugby League, the loss of votes for the Director General, and the
misuse of power resulting from his transfer of authority to the
former president, along with the clear historical facts that were
not presented to him during his tenure, were all overlooked. As a
result of this oversight, the work carried out by those responsible
for these mistakes outside Sri Lanka, as well as those who bear
international responsibilities, was disregarded.
Despite being the competent authority of Sri Lanka, the Director
General, who attended the Asian office election, was unable to
exercise his right to vote. We don’t know whether those who have
the right to vote in the Rugby Constitution will understand what
it feels like to have that power removed, whether through the loss
of the opportunity to express their opinions.
The procedure for conducting elections
As we have repeatedly pointed out, the Director General has had
to agree to act in accordance with the Rugby Constitution in court.
If he was in the hands of former ministers and other people with
whom he worked closely in Rugby, then it should be clear to the
Director General that all those people were using him to destroy
the Director General’s illustrious sporting and military
professional history.
The decision he made in the guise of a lion was legally binding
for him to change in court. This means that the process he
followed by disregarding the Rugby Constitution and attempting
to amend the Constitution without giving due opportunity to those
entitled to vote in it was wrong. As a result, he has been compelled
to issue a letter agreeing to the court order dated December 5,
2024 (CA/WRT/0438/24), which mandates convening a special
general meeting before the election, excluding the constitutional
amendment from the agenda, and ensuring that the newly elected
administration, in accordance with the Sri Lanka Rugby
Constitution, engages with the World Rugby to make decisions.
The true story of our intervention
The Director General has now been compelled to accept the
conclusion we reached months ago: that the special general
meeting and the election of officers should proceed with the
judiciary clarifying the legal framework, and that any
constitutional amendments should be undertaken by the incoming
rugby administration. Accordingly, those advising him will also
need to outline the legal implications of what unfolds tomorrow
and communicate them clearly. If they perceived showing the
correct path as a critique or condemnation, the Director General
must reconsider who truly guided him to avoid this
embarrassment.
We also wrote about how the constitutional amendment should
consider how a major and A-grade rugby club should have voting
rights in some way. We propose that A- and B-grade rugby should
be merged in some way to increase the competitiveness of rugby
in the country. The team that finishes last in the A-grade rugby
league tournament should be relegated to B-grade, while the team
that finishes first in the B-grade tournament should be promoted
to compete in the A-grade league tournament. Unless this is
addressed annually, the growth of rugby talent in this country will
remain slow and incremental.
Unless this is implemented, the gap between A and B-grade rugby
will continue to widen. The recognition, professionalism, and
social attention towards the B-grade tournament and the teams
involved will decline. The Director General’s decision to promote
the Sri Lions to Group A is a crucial step in addressing and
changing this situation. Accordingly, at the end of this year’s
tournament, two teams could be relegated, limiting Group A to
eight teams as has been the case since 2026, and sending the last
team in Group A to Group B, and the first team in Group B to
Group A. It is a small but significant step that will encourage more
teams to enhance the quality of rugby and elevate it to a higher
competitive level.
Ministers, Officials and Rugby
The actions taken by Namal Rajapaksa during his tenure as Sports
Minister led to a conflict between the Asian President and Rizly
Illyas, who was working hard to revive rugby at the time. The
Minister, despite having a former Sri Lanka Rugby captain, not
only bypassed the Sri Lanka Rugby Federation and engaged
directly with the Asia President, but also appointed an advisory
board to the Sri Lanka Rugby administration in collaboration with
the Asia President.
Although the media has made a lot of noise about the fact that Sri
Lanka has been fined £50,000 for fielding foreign players during
Namal’s playing days, and that the amount will be paid back from
the aid money received by Sri Lanka by the people who
contributed to the mistake, no minister has paid any attention to
them. Therefore, those who make such mistakes have been able
to win the blessings of the Asian Association, responsibilities and
the love of ministers to elevate Sri Lankan rugby.
Ultimately, based on a private WhatsApp conversation with the
Asia President, under the guise of promoting the independence of
rugby in the country, the Sri Lankan President was forced to step
down without a proper investigation or even a charge sheet into
the Asia President’s actions. This situation unfolded while Sri
Lankan politicians and officials were supporting and agreeing
with that decision.
Everyone from Namal to Roshan to Harin acted incorrectly in this
situation. Namal and Harin may not have made the right decisions
regarding these individuals and their involvement in rugby-
related matters. However, that does not befit a sports minister.
Even though Roshan Ranasinghe had no direct involvement in
rugby, the very individuals he sought advice from, treating them
as experts, are the ones accused of borrowing money and must
now explain how the rugby account ended up in debt.
However, the new minister understood this problem. We believe
the secretary must have grasped it through his own experience.
The deputy minister, a former athlete at Reed before he built a
rugby field, has firsthand knowledge of rugby, having both heard
and seen it in action. Therefore, the Minister and the Secretary
may have sought advice from the Deputy Minister to identify
imitations and gold.

Future steps
At this point, the Director General must have had to appear before
the court to stop the destruction of the joy of rugby in Sri Lanka
for over two months because he was convinced that the political
leadership above him, as well as the administrative leadership,
needed to work properly. We are confident and optimistic that
political authorities, administrative officials, and the newly
appointed official board for rugby administration will take into
account the positive suggestions we have made in this note
moving forward. Now that we have agreed to implement the
correct legal procedure for the Rugby election, we hope that the
new Minister and Deputy Minister will also be aware of this. The
board of officers to be elected at the election, following the
special general meeting on the 20th, will not be able to ignore past
mistakes.

Colombo Dockyard PLC has announced plans to seek potential investors to secure its long-term sustainability after suffering significant financial setbacks. The company, a key player in Sri Lanka’s shipbuilding and repair industry, faced severe challenges due to delays in vessel deliveries during the economic turmoil triggered by central bank rate cuts.

In a letter to the Colombo Stock Exchange, the firm stated that its Board of Directors is actively exploring investment opportunities to revitalize the business and ensure its future growth. 

For the third quarter of 2024, Colombo Dockyard reported a sharp decline in revenue, falling from Rs. 7.9 billion in the same period of 2023 to Rs. 5.1 billion. 

Despite the drop, net losses improved from Rs. 6.7 billion to Rs. 1.35 billion, reflecting better cost management. Over the nine months ending September 2024, the company recorded a net loss of Rs. 1.63 billion on reduced revenue of Rs. 18.8 billion, compared to Rs. 29.1 billion in 2023.

A SWOT analysis highlights the firm’s strategic location and diverse service offerings as strengths, but financial instability and liquidity issues remain pressing concerns. Colombo Dockyard relies heavily on global shipping demand, which has been volatile. 

The company acknowledged the need for external funding, including foreign investment, to sustain operations and enhance its competitiveness. Potential investments could focus on technological upgrades and service expansion.

The company attributed part of its struggles to delays and cost overruns during the COVID-19 pandemic and subsequent currency crises, which hampered its ability to deliver cable-laying vessels. 

A low bid price to enter the cable-laying market compounded its difficulties. Despite these setbacks, the firm’s ship repair business continues to generate cash, and progress is being made on building four hybrid bulk carriers for Misje Eco Bulk AS of Norway. Colombo Dockyard also secured an engineering project in the Maldives and plans to expand its ventures into higher-value markets.

To address liquidity issues, Colombo Dockyard has established credit lines with banks and is pursuing preferential funding options. 

However, financial guarantees for large contracts remain critical, and the firm is under pressure to resolve its challenges promptly. 

The company was placed on a Colombo Stock Exchange (CSE) watchlist after its auditors raised a going concern caution. If unresolved within 15 months, the firm risks trading suspension and eventual de-listing.

Colombo Dockyard’s Board of Directors has pledged to maintain transparency and provide updates on strategic investment efforts. The firm aims to implement remedial actions within 12 months, with deviations reported promptly. The search for investors underscores its commitment to overcoming current hurdles and driving future growth.

The Palm Oil Industry Association of Sri Lanka (POIASL) has reiterated its demand for the government to lift the ban on oil palm cultivation, emphasizing its economic, environmental, and strategic advantages.

During its fifth Annual General Meeting (AGM), POIASL President Dr. Rohan Fernando criticized the ban as an “ill-conceived ad-hoc decision” lacking scientific evidence and rooted in personal agendas.

The ban, introduced in April 2021 under former President Gotabaya Rajapaksa, cited environmental concerns raised in a 2018 Central Environment Authority report. It called for phasing out cultivation within ten years. 

However, concessions were later made to allow palm oil imports for essential industries like confectionery. Dr. Fernando argued that such inconsistent policies have adversely impacted the economy, as Sri Lanka continues to rely on costly edible oil imports despite the high efficiency and economic potential of oil palm. Globally, oil palm accounts for over 40% of vegetable oil demand, often hailed as the “golden crop.”

Dr. Fernando highlighted the potential of oil palm cultivation to generate employment in farming, processing, and distribution while reducing dependence on imports, thus conserving foreign exchange reserves.

 He also urged collaboration with major palm oil-producing nations like Indonesia, Malaysia, and India. India, under Prime Minister Narendra Modi, is accelerating its oil palm cultivation program, targeting three million hectares by 2030. 

Dr. Fernando noted that while neighboring India is expanding its plantations to achieve import substitution, Sri Lanka remains the only country to impose a complete ban, harming its economic interests.

Environmental Impact Studies conducted by POIASL indicate that expanding oil palm cultivation could have met 50% of Sri Lanka’s edible oil needs by 2025. In 2014, the government approved planting on 20,000 hectares to address rising demand, which now stands at 80,000 metric tons annually.

 However, the ban disrupted this progress, forcing reliance on imports. Despite lower duties on imported coconut oil, the cost to Sri Lanka’s foreign exchange reserves remains significant.

Dr. Fernando stressed that oil palm’s productivity is nearly four times that of coconut oil, making it a more efficient solution for meeting domestic demand and enhancing foreign exchange earnings. 

He expressed optimism about the new administration’s focus on food security, poverty alleviation, and economic growth, which could pave the way for revisiting the ban.

The AGM also discussed countering misconceptions about oil palm and strengthening the association’s advocacy efforts. Dr. Fernando remains hopeful that the government’s future decisions will align with lessons learned globally, especially from India’s approach to balancing demand and local production.

The POIASL concluded the AGM with a renewed commitment to pushing for policy changes and replanting initiatives, emphasizing that oil palm cultivation could be a strategic move to revive Sri Lanka’s struggling economy.

Sri Lankan authorities are set to host a tourism conference in January to finalize a comprehensive nation branding strategy aimed at boosting the industry, which is currently experiencing significant growth. Sri Lanka Tourism Chairman, Buddhika Hewawasam, revealed this initiative to TTG Asia, emphasizing the need for a unified approach to enhance the country’s global image.

The existing tagline, “You Will Come Back for More,” developed in 2022 during the economic crisis and post-COVID-19 recovery, will be discontinued. Hewawasam noted that while the tagline served its purpose of regaining tourist interest, it is no longer aligned with Sri Lanka’s current international recognition. “We need a fresh strategy that resonates with diverse markets,” he explained.

The new strategy will leverage Sri Lanka’s global identity, particularly its reputation for Ceylon tea and cricket, two of the country’s most celebrated exports. Hewawasam stressed the importance of developing a cohesive national brand to promote these cultural symbols while also aligning with the broader tourism goals.

Tourist arrivals have seen a sharp rise, with 1.8 million visitors recorded from January to November 2024, up from 1.3 million in the previous year. Sri Lanka is on track to surpass its target of over two million visitors, with key source markets including India, Russia, the UK, Germany, and China.

In January, a public relations firm will be appointed to spearhead the promotional campaign under the unified branding. Hewawasam highlighted the shift from standalone taglines to a long-term nation branding approach that positions Sri Lanka as a year-round travel destination. This includes improving tourism products and services to meet global standards.

Over the past two decades, Sri Lanka has frequently changed its campaign branding, using individual taglines for specific initiatives rather than creating a unified identity. This inconsistent approach has often diluted the country’s global image. The upcoming nation branding strategy aims to address this by presenting a cohesive and synergized portrayal of Sri Lanka through its tourism, products, and services.

Stakeholders believe that a well-executed national brand will not only enhance tourism but also drive higher export value, attract foreign investments, and position Sri Lanka as a prime destination for business and commerce. “A unified national brand reflects the country’s core values and creates a solid understanding of what Sri Lanka represents globally,” Hewawasam stated.

This pivotal shift marks an opportunity for Sri Lanka to redefine its position on the global stage, presenting itself as a destination rich in culture, natural beauty, and unique experiences, backed by a strong national identity.