By Duruthu Edirimuni Chandrasekera

Questions are being raised by stakeholders on the bureaucratic red tape and general lethargy by the employees of the Department of Registrar of Companies (DRC) who in turn, blame issues on the new IT systems at the department.

A myriad of issues are plaguing this institution, where the delays in incorporating companies stand foremost and the organisation is currently headless.

Six years ago, the DRC deployed KPMG to digitalise its functions with a Rs. 35 million project. KPMG managed to digitalise and computerise the functions in phase one of the eRoC system project in 2018. By 2021 the DRC was completely automated, becoming the first 100 per cent paperless government organisation in the country, eliminating bribery and corruption.

Unravelling some of the issues, Ganesh Wijenayake, Consulting Project Manager KPMG e Registrar of Companies Project (eRoC) told The Sunday Times Business that there are no major issues with the system now. “This was awarded two prestigious gold awards at the National Project Management Excellence Awards in 2023. The real problem in delays in servicing the public is the lethargic approach of one or two officers who manage incorporations as well as huge delays in Public Contract Registrations. As of the end of the day (September 19) over 630 incorporations are pending. The system is capable of completing the entire incorporation process within a day but the lethargic attitude of a couple of officers creates panic at the DRC.”

Since July 7, the current Registrar General of Companies (RGC) from the Industries Ministry has been absent, complicating the Department’s operations and Companies Act No 7 of 2007 regulations, Mr. Wijenayake noted adding that from 1938 until the system was introduced in 2018 the companies incorporated in Sri Lanka were less than 96,000. Sri Lanka’s paperless system, introduced in 2018, has incorporated over 110,200 companies, registered over 223,000 annual returns, and generated over Rs. 4.7 billion in revenue for the Department of Revenue.

“At the beginning of this year, the former RGC transferred over 22 senior staff members without replacements nor succession training programmes for newcomers. Apart from the non-trained staff, the required vacancies were not filled,” Mr. Wijenayake said.

Company secretaries in the DRC are experiencing delays in registering companies due to internal administrative issues and bureaucracy. Some staff is unable to register online due to system issues in the new system.  Jayasanka Perera, a Company Secretary, said that more than six years ago, everything was done manually. Now their ‘work arrangements’ have changed. “This delay is a big issue for us due to this,” he said.

Before the earlier mention of transfers, the incorporation time of a company was one day or a maximum of two days if all the details were correct, Mr. Wijenaike noted. Form 15 backlogs were less than 300 which is almost the daily submission rate.

Both Mr. Wijenayake and Mr. Perera said that public visits have been limited to one day, per week. “We can only go to DRC on Wednesday,” Mr. Wijenayake noted, adding that the issues related to data migration from old physical files do cause some issues which are corrected within a day or two. He also noted that for the first time in the country, the instant issuance for certified copies and file searches for documentation are provided through this system.

ROC has issued about 220,000 online certified copies with real-time validation. Before this system, it took weeks or months to obtain a certified copy against the instant issuance.

“This eROC project failed a few times before KPMG took over and the Government has lost more than Rs.13 million due to ignorance in project management. These forces are still active and trying to sabotage this valuable project by causing problems, delaying work, and introducing unwarranted procedures to create public hate against this system,” Mr. Wijenayake alleged.

Several attempts at contacting the DRC management by The Sunday Times business failed on both Thursday and Friday.

Source: Sunday Times

By: Staff Writer

September 29, Colombo (LNW): Sri Lanka’s coffee industry is experiencing a resurgence, driven by favorable geography, climate, and growing investments. The global specialty coffee market’s expansion is boosting the country’s potential as a key player.

By 2029, the Sri Lankan coffee market is projected to grow by 10.05%, reaching a market value of US $106.50 million. Revenue in 2024 is expected to be $6.64 million, with an annual growth rate of 8.79%, increasing to $10.12 million by 2029.

The Market Development Facility (MDF), an Australian initiative, is partnering with the private sector to support this growth by enhancing coffee production and improving sourcing and processing.

Coffee consumption in Sri Lanka is anticipated to rise slightly, from 7,000 metric tons in 2023 to 7,100 metric tons by 2028. However, production is expected to decrease from 36,000 to 35,000 bags during this period.

Despite these modest figures, the number of coffee consumers in Sri Lanka is projected to reach 630,100 by 2029, with smallholder farmers driving 80% of production.

Private equity specialists Ironwood Capital Partners, announced a partial exit from its investment in the Colombo Coffee Company group which also includes Barista Coffee Lanka.

A consortium of investors brought together by Capital Alliance Holdings Ltd. (CAL) has acquired a 20% stake in the group.

Colombo Coffee Company, Sri Lanka’s leading Coffee solutions provider, serves 4 out of every 5large hotels in the country. It represents renowned international coffee brands such as Lavazza,

LaCimbali, Gaggia, and also markets its locally-developed and sourced coffee brand, Toscana

Ceylon. Barista Coffee Lanka, part of the same group, is the largest coffee chain in the country with over 40 retail outlets.

Ironwood originally invested in Colombo Coffee Company in 2016, partnering with the management team to accelerate growth, drive innovation, and expand into new markets.

Ironwood Capital Partners Managing Partner Hiran Embuldeniya said: “Through the collective efforts of the group, we have achieved a market-leading position in both the B2B and retail coffee sectors.

Bringing along the CAL Consortium will help us cement our market position and help us expand into new areas. This investment reflects our commitment to driving long-term value creation. We look forward to the next chapter of growth for the group, and we remain confident in the company’s continued success.”

CAL Group CEO Kanishke Mannakkara said: “We are excited to be joining hands with ColomboCoffee Company and its shareholders. This company has emerged as a category leader within the coffee sector in Sri Lanka and has the potential to do exciting things in the future. We look forward to being a part of this story.”

Colombo Coffee Company Founder and Director Ajith Dias said: “This has been a long journey of over 20 years for us. I am proud to see Colombo Coffee Company today in a leadership position and bringing in the right partnerships has been key to that success. I look forward to the next chapter in our journey with our new partners.”

By: Staff Writer

September 29, Colombo (LNW): LTL Holdings Limited, one of Sri Lanka’s largest engineering firms, is planning to list its shares on the stock market, aiming to raise at least Rs 20 billion, according to company insiders.

The initial public offering (IPO) is expected to be the largest in Sri Lanka’s history. Originally founded as Lanka Transformers Limited in the 1980s, LTL Holdings has grown to become the country’s leading engineering conglomerate.

On August 20, 2024, LTL Holdings entered a significant partnership with India’s Petronet LNG Limited, focusing on developing LNG infrastructure and supply in Sri Lanka.

The two companies signed a Memorandum of Understanding (MOU) and jointly submitted a proposal to Sri Lanka’s Ministry of Power and Energy, which received cabinet approval following a technical review.

This partnership represents a major step forward in Sri Lanka’s move toward cleaner and more sustainable energy solutions.

The MOU signing ceremony was attended by several high-ranking officials, including the Sri Lankan Minister of Power and Energy, Kanchana Wijesekara, and Dr. Satyanjal Pandey, the Deputy High Commissioner of India for Sri Lanka.

The partnership between LTL and Petronet LNG is set to focus on supplying liquefied natural gas (LNG) to the Sobadhanavi Power Plant in Kerawalapitiya, which will soon be operational.

This initiative, spearheaded by the governments of both Sri Lanka and India, aims to serve as an interim solution to introduce LNG into the country’s power generation mix.

Minister Wijesekara has emphasized the importance of reducing generation costs and ensuring that consumers benefit from lower electricity prices, urging both companies to expedite the development of a reliable energy solution.

The project will involve importing LNG from Petronet’s Kochi terminal in India to Colombo Port using ISO containers. Once the LNG arrives in Sri Lanka, it will be transported to a storage and regasification terminal in Kerawalapitiya, where it will be converted back to gas and sent to the Sobadhanavi Power Plant via a pipeline.

The power plant, owned and operated by Lakdhanavi Limited, LTL Holdings’ power development subsidiary, will add 350 MW to Sri Lanka’s grid by early 2025. Designed to run on natural gas and up to 30% hydrogen, this facility represents a significant leap in the country’s energy infrastructure.

LTL Holdings has long been committed to providing cost-effective power solutions as Sri Lanka’s first and largest independent power producer.

The company’s collaboration with Petronet aligns with Sri Lanka’s environmental goals, as LNG is a cleaner energy source that will help reduce greenhouse gas emissions. Furthermore, the cost efficiency of LNG is expected to lower electricity costs, providing economic relief to consumers while promoting sustainable development in Sri Lanka’s energy sector.

By: Staff Writer

September 29, Colombo (LNW): The Co-Prince of Andorra and President of France, Emmanuel Macron, commended the strong relationship between Sri Lanka and Andorra during a diplomatic ceremony.

 Ambassador Manisha Gunasekera of Sri Lanka presented her Letters of Credence to the Co-Prince at the Elysee Palace, marking a significant moment in the ongoing bilateral relationship.

After the formal presentation, Ambassador Gunasekera had a brief but meaningful discussion with Co-Prince Macron, conveying warm regards and best wishes from the President of Sri Lanka. She also highlighted the dynamic nature of Sri Lanka-Andorra bilateral relations and cooperation in various multilateral platforms.

In response, Co-Prince Macron extended his heartfelt greetings to the Sri Lankan President, government, and citizens, expressing his eagerness to strengthen ties between Sri Lanka and France across multiple sectors.

In his speech to the assembled ambassadors, Co-Prince Macron emphasized his role as the guardian of a rich tradition connecting France and the Principality of Andorra.

He praised the political, economic, and cultural cooperation that countries like Sri Lanka have cultivated with Andorra, while also noting Andorra’s growing partnership with the European Union. Andorra’s Foreign Minister, Imma Tor Faus, attended the ceremony alongside Macron.

Earlier, on March 15, 2024, Ambassador Gunasekera had presented her Letters of Credence to the other Co-Prince of Andorra, His Eminence Joan-Enric Vives i Sicília, the Bishop of Urgell, at the Episcopal Palace in La Seu d’Urgell.

During her visit, she met with Andorran Foreign Minister Imma Tor Faus to discuss bilateral relations and common interests. The Ambassador also attended a reception hosted by Vicenç Mateu Zamora, President of the Andorran Parliament, to celebrate Andorra’s Constitution Day, where she exchanged greetings with the Prime Minister, Xavier Espot Zamora.

Andorra, a unique diarchy, is co-governed by the Bishop of Urgell and the President of France. Ambassador Gunasekera currently serves as Sri Lanka’s resident Ambassador to France, with concurrent accreditation to the Principality of Andorra.