The Local Consortium of Sri Lanka (LCSL), comprised of domestic commercial banks and financial institutions, has committed its full support for the Exchange Offer and Consent Solicitation launched today by the Government of Sri Lanka to restructure the US$12.55bn in outstanding International Sovereign Bonds (ISBs) including terms tailored for local holders.
This follows the agreement-in-principle reached in September 2024 with the Government on key financial terms.
“All members of the LCSL intend to participate in the ISB restructuring, which will provide the Government with substantial debt relief. This will be in addition to the support provided to the Government and wider economy since the foreign currency default in April 2022,” the LCSL statement said.
The restructuring of the ISBs will also cure the sovereign debt default, support the restoration of macroeconomic stability and ensure debt sustainability in the context of the Sri Lanka IMF programme, it said.
The Steering Committees of the LCSL and the Ad Hoc Group of Sri Lanka Bondholders (representing international holders of Sri Lanka’s ISBs) cooperated in order to find a comprehensive solution for Sri Lanka.
Members of the LCSL and Ad Hoc Group collectively represent more than 50% of Sri Lanka’s total outstanding ISBs. The Local Option gives ISB holders the ability to exchange existing claims into new instruments denominated in both Sri Lanka Rupee and US Dollars.
The statement further said: “Members of the LCSL would like to extend their gratitude to the authorities and all those involved for their efforts in reaching this significant milestone.
Curing the default on Sri Lanka’s ISBs will both facilitate the restoration of external market access and is a crucial step forward not only for the Government but also for LCSL members in maintaining their ability to finance the country’s economic recovery.”
Sanath Manatunge, Chairman of the LCSL and CEO of Commercial Bank of Ceylon PLC, said: “We are pleased to have reached this critical turning point following more than two years of discussions.
This restructuring will help restore macroeconomic stability and encourage investment in the local economy to the benefit of the people of Sri Lanka. Members of the LCSL fully appreciate and recognise their responsibility to finance the economic recovery and look forward to fulfilling this role.”
The LCSL is being advised by Newstate Partners LLP and Baker & McKenzie Wong & Leow.
The LCSL is comprised of eleven local banks and financial institutions and holds approximately 12% of the outstanding ISBs.
Members include Commercial Bank of Ceylon PLC, DFCC Bank PLC, Hatton National Bank PLC, National Development Bank PLC, Nations Trust Bank PLC, Pan Asia Banking Corporation PLC, Seylan Bank PLC, LOLC Finance PLC, LOLC Financial Sector Holdings (Private) Limited, Softlogic Life Insurance PLC.
At seminars and forums, one of the most frequent questions I
encounter is:
What traits set business leaders like Elon Musk, Steve Jobs, Jack Welch, Ratan Tata, and Richard Branson apart from the rest?
While I haven’t had the privilege of working directly with these global icons, I’ve engaged with several global gurus who have collaborated with these entrepreneurs. Their valuable insights have provided clarity into this question. Additionally, I’ve had the opportunity to closely associate with some of Sri Lanka’s most successful entrepreneurs, including working with them at the board level.
Through these experiences, I’ve observed shared traits among Sri Lanka’s top business leaders—visionaries such as Harry Jayawardena, Aban Pestonjee, Sumal Perera, the late Merril J. Fernando, Sohil Captain and Chandra Schaffter. A few of these legends candidly shared their experiences during the famous FT-ICCSL-CIMA Fireside Chat in 2018, offering profound lessons on business leadership and perseverance.
These leaders exhibit qualities that not only set them apart from regular entrepreneurs but also empower them to leave a lasting legacy—transforming their enterprises while positively impacting the communities they serve.
Just as political leaders rise and fall in Sri Lanka, businesses and their founders face similar challenges. The companies that endure owe their longevity to strong, visionary leadership. These business leaders combine foresight, motivation, and key abilities to achieve results. They not only secure their companies’ success but also reshape industries, set benchmarks, and make a meaningful societal impact.
Here are my five key traits that I believe are common to Sri Lanka’s most successful entrepreneurs:
1. Vision and delivery
Strong entrepreneurs possess the ability to foresee opportunities and craft a compelling vision. Many of them have transformed their enterprises into global brands/businesses by focusing on sustainable, long-term growth rather than short-term gains.
Business leaders like Mrs. Aban Pestonjee and Merril J. Fernando have built their brands around the unwavering values they believed in, which they’ve seamlessly integrated into their business models. Their success demonstrates how a clear vision, aligned with strong principles, can redefine industries and set new standards.
2. Change before you have to
Resilience in the face of challenges is a defining trait of exceptional entrepreneurs. They adapt, pivot, and persevere through setbacks, turning obstacles into opportunities. For instance, Access Engineering, led by Sumal Perera, has repeatedly navigated significant hurdles in the construction and property sectors through innovative strategies and unyielding determination.
Harry Jayawardena, known for his pragmatic outlook, often reminded me of the importance of action over complaint, famously saying, “It is better to light a candle than curse the darkness, so get on with it.” This mindset exemplifies the resilience and proactive approach that characterise successful leadership, inspiring teams to forge ahead regardless of adversity.
3. Innovation and adaptability
Remaining relevant requires continuous evolution. Sri Lankan entrepreneurs like Mrs. Aban Pestonjee have embraced change, adopted new technologies, and introduced locally manufactured products tailored to the specific needs of local consumers. This adaptability has been instrumental in transforming industries such as retail, setting benchmarks for others to follow.
Similarly, bold risk-taking is another defining characteristic of successful leaders. Visionaries like Harry Jayawardena have taken calculated risks, blending courage with informed decision-making to drive their ventures forward. Additionally, Chandra Schaffter played a pioneering role in establishing Janashakthi Insurance, Sri Lanka’s first major life insurance company. His efforts ensured not only the company’s survival through challenging times but also its enduring presence within his family’s stewardship, cementing a legacy in Sri Lanka’s insurance sector.
4. Focus on quality and consistency
Consistently delivering quality builds trust and fosters long-term brand loyalty. Merril J. Fernando transformed the global tea industry with his commitment to single-origin, high-quality tea and ethical sourcing practices, setting new benchmarks for authenticity and sustainability. Similarly, entrepreneurs like Sumal Perera have focused on customer-centric strategies, customising their offerings to address real market needs while fostering innovation.
Beyond profitability, these leaders emphasise creating positive social impact. Initiatives like the MJF Foundation showcase a deep commitment to community development, while the socially responsible practices of MAS Holdings and Brandix highlight the role of sustainable and responsible business operations.
Sohli Captain, in particular, embodied this spirit through his visionary leadership and dedication to philanthropy. His countless acts of service reflect an unwavering commitment to uplifting communities, contributing to national progress, and leaving a lasting legacy of compassion and generosity.
5. Building strong teams that are community focused
Progressive entrepreneurs recognise the immense value of empowering and nurturing their teams. They create environments where talent is encouraged to thrive, fostering a culture of collaboration, excellence, and tangible results; organisations like MAS and Brandix exemplify this approach. They have built enterprises that not only excel in cultivating strong talent pools but also actively uplift the lives of their employees and the communities they serve.
The takeaway
The defining feature of these individuals isn’t just financial success—it’s their ability to inspire, change, innovate, and create lasting value. Their journeys are a testament to the fact that entrepreneurship is about more than building businesses; it’s about shaping a better future for their enterprises, for their employees, communities, and society as a whole.
In a country where mediocrity often seems like the safest choice, the key to standing out lies in taking the road less travelled. By venturing into uncharted territories, these entrepreneurs saw what others haven’t and achieved what others cannot. This is the defining difference between an average businessman and a visionary entrepreneur who has built globally recognised brands and transformed their industries.
November 29, Colombo (LNW): China’s Ambassador to Sri Lanka, Qi Zhenhong, met with newly elected Speaker of Parliament Dr. Asoka Ranwala recently, with Secretary General of Parliament Kushani Rohanadeera also in attendance.
During the meeting, the Chinese Ambassador conveyed greetings from Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China, to Speaker Ranwala. Reflecting on the longstanding ties between Sri Lanka and China, Speaker Ranwala expressed hope for further strengthening relations under the new government led by President Anura Kumara Dissanayake.
Ambassador Qi emphasized the importance of enhancing cooperation between the legislative bodies of both countries and proposed establishing the Sri Lanka-China Parliamentary Friendship Association in the Tenth Parliament. Discussions also focused on expanding collaboration in areas such as economic development, agriculture, hybrid seed technology, water management, crude oil refining, foreign investment, and export promotion.
November 29, Colombo (LNW): UNICEF Deputy Executive Director Hannan Sulieman met with Prime Minister Dr. Harini Amarasuriya on Tuesday (26) at the Prime Minister’s Office to discuss key issues affecting children in Sri Lanka, including child protection, malnutrition, and education.
The meeting was attended by Regional Director for UNICEF South Asia Sanjay Wijesekera, UNICEF Representative in Sri Lanka Christian Skoog, and Regional Chief of Operations Yuko Kusamichi. The Sri Lankan delegation included the Prime Minister’s Secretary Pradeep Saputhanthri, Additional Secretary (Development) Mahinda Gunarathna, and Director for UN and Human Rights at the Foreign Affairs Ministry Dilini Gunasekera.
The discussions revisited critical topics from previous engagements, with both parties reaffirming their commitment to improving the well-being and development of children in Sri Lanka.
November 29, Colombo (LNW): Sri Lanka reaffirmed its longstanding commitment to the full, effective, and non-discriminatory implementation of the Chemical Weapons Convention (CWC) at the 29th session of the Conference of State Parties (CSP-29) held in The Hague, Netherlands, on November 27.
Delivering the national statement, Sri Lanka’s Ambassador to the Netherlands, Rekha Gunasekera, who also serves as the Permanent Representative to the Organisation for the Prohibition of Chemical Weapons (OPCW), emphasized the importance of sustained commitment to the obligations of the CWC. She stated that Sri Lanka firmly opposes the use or threat of chemical weapons under any circumstances and highlighted the country’s continued efforts at the national level through the National Authority under the Defence Ministry.
Ambassador Gunasekera also expressed Sri Lanka’s support for international cooperation in advancing scientific and technological exchanges for peaceful purposes in line with the Convention. She noted the importance of addressing emerging technological challenges, including the role of artificial intelligence, while ensuring that advancements in chemistry are not misused by terrorists.
Sri Lanka signed the Chemical Weapons Convention on January 14, 1993, and ratified it on August 19, 1994. The Convention, implemented by the OPCW, prohibits the development, production, stockpiling, and use of chemical weapons and mandates their destruction. The 29th session of CSP-29 continues from November 25–29.
November 29, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya held a series of diplomatic meetings at the Prime Minister’s Office, reflecting Sri Lanka’s dedication to strengthening its international partnerships and fostering cooperation across various sectors.
Among the dignitaries received were:
Adel Ibrahim, Ambassador of Egypt to Sri Lanka
Dr. Alireza Delkhosh, Ambassador of Iran to Sri Lanka
Isomata Akio, Ambassador of Japan to Sri Lanka
Archbishop Monsignor Brian Udaigwe, Apostolic Nuncio of the Vatican to Sri Lanka
These discussions, attended by senior representatives from the respective embassies and Sri Lankan officials, including Pradeep Saputhanthri, Secretary to the Prime Minister, focused on enhancing bilateral relations and identifying avenues for collaboration.
The meetings underscored Sri Lanka’s commitment to fostering robust diplomatic relationships while advancing mutual interests in areas such as trade, cultural exchange, and development cooperation. The Prime Minister reaffirmed the importance of continued dialogue and partnership in navigating shared challenges and opportunities.
November 29, Colombo (LNW): The deep depression over the southwest Bay of Bengal was located about 240 km northeast of Trincomalee and 290km east of Kankasanthurai around 11.30 p.m. of 28th November 2024.It is likely to move northwestwards, towards Tamil Nadu coast. It can be expected that the influence of this system on the island’s weather will gradually reduce after today (29).
Showers or thundershowers will occur at times in Northern and North-central provinces and in Trincomalee district. Heavy showers above 100 mm are likely at some places in Northern province.
Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Matale and Kandy districts. Showers or thundershowers will occur at several places elsewhere of the island in the evening or night.
Strong winds of about 60 kmph can be expected at times over Northern, North-central, North-western, Eastern, Central and Southern provinces.
The general public is kindly requested to take adequate precautions minimize damages caused by temporary localized strong winds and lightning during thundershowers.
November 28, Colombo (LNW):Airport and Aviation Services (Sri Lanka) Ltd, or AASL, is pushing ahead with key development projects and digital innovations to improve Sri Lanka’s aviation infrastructure, after a recent decline in profit.
The sattae owned enterprise announced the tender for Bandaranaike International Airport Development Project Phase 2 (the BIA Project), which aims to accomplish the full scope of the Project funded by the JICA’s ODA loan by the end of 2027 to meet the growing passenger demand in Sri Lanka.
In the end of July 2024, upon the signing of the Memorandum of Understanding on debt restructuring by members of Official Creditors’ Committee and the Government of Sri Lanka, JICA has restarted disbursement for all the JICA-funded projects, including the BIA Project.
JICA recognizes the BIA Project as one of the most important projects between Sri Lanka and Japan, and wishes that the new airport facilities to be built under the project will contribute to inviting more foreign visitors to Sri Lanka and increasing country’s foreign currency earnings. JICA will continue to provide AASL with assistance necessary to complete the BIA Project.
AASL will employ a local contractor using its own money to complete unfinished substructure work at BIA, abandoned by a Japanese contractor. The work, which will be overseen by the same consultant employed for the project, is vital as BIA is already operating over capacity.
Concomitantly, AASL is integrating advanced digital technologies aimed at smoothening and enhancing passenger experiences. Advantages with regards to self-check-in kiosks, biometric security systems, and AI-driven analytics enhance efficiency and security, while mobile applications with contactless services offer safe and more convenient travel solutions in the post-pandemic era.
On November 1, 2024, AASL revised an agreement with Japan Airport Consultants, Inc. and Nippon Koei Co., Ltd., furthering Phase II, Stage 2 of the Bandaranaike International Airport Development Project. Funded by the Japan International Cooperation Agency, the project aims at completing a new passenger terminal and associated infrastructure. Procurement for construction is already in process.
Meanwhile, AASL is also setting up a dedicated unit at BIA to report on flight delays in real-time, in collaboration with SriLankan Airlines, under the guidance of Minister Vijitha Herath. Efforts are being made to reduce delays and improve facilities for waiting passengers.
Long-term plans for sustainability at AASL also include solar energy expansion, waste management, and green building. Furthermore, the organization is looking into alternative aviation fuels and other emerging eco-friendly technologies to put Sri Lanka’s airports on par with global trends of sustainable aviation.
Efforts are underway to rejuvenate Mattala Rajapaksa International Airport (MRIA) as a regional hub. Infrastructure enhancements to the runway and terminals aim to attract international carriers and increase cargo operations, particularly from low-cost airlines.
Despite these advancements, AASL’s financial performance in early 2024 saw a decline. Total revenue reached Rs. 20,823 million, with aeronautical and non-aeronautical revenues contributing Rs. 3,924 million and Rs. 16,824 million, respectively.
However, the profit before tax declined 13% to Rs. 17,324 million from Rs. 19,885 million recorded in the corresponding period of 2023. The decline is mainly due to higher personnel costs arising from salary revisions for air traffic controllers and staff.Though there are still financial challenges, AASL remains committed to its vision of growth, sustainability, and enhanced services, signaling promising progress for Sri Lanka’s aviation sector
November 28, Colombo (LNW):The Sri Lankan government is set to implement immediate measures to stabilize coconut and coconut oil prices, which have soared due to supply shortages and high domestic demand, according to the Agriculture Ministry. A senior official highlighted the urgency, noting the ongoing challenge of meeting local coconut demand.
Sri Lanka’s coconut oil consumption, currently 34,000 metric tons annually, is projected to reach 40,600 metric tons by 2026, growing at an average rate of 2.9% per year since 2017.
Despite being the 10th largest consumer globally in 2021, Sri Lanka faces rising costs in the global edible oil market, driven by climate issues and international demand. Refined coconut oil prices have risen from $1,320 to $1,880 per ton, with palm oil nearing $1,250 per ton.
Locally, wholesale coconut oil prices have jumped from Rs. 630 to Rs. 700 per kilogram, with retail prices reaching Rs. 1,350 per liter. These increases have forced the market to turn to cheaper imported oils. Meanwhile, the ongoing Russia-Ukraine conflict has reduced sunflower oil prices, benefiting India but leaving Sri Lanka grappling with higher coconut oil costs.
In response, the government is considering easing palm oil import restrictions, introduced in 2022, to reduce the financial burden. Currently, coconut oil imports cost Sri Lanka approximately $3.5 million monthly, a figure that could be cut by $50 million annually if restrictions are lifted. Local refiners favor crude palm oil imports, while distributors prefer refined varieties. Meeting demand through imports could stabilize coconut oil prices and boost government revenue under the existing tariff structure.
The edible oil market also faces hurdles from rising freight costs and regulatory inefficiencies. Freight charges have surged due to the U.S.-China trade conflict, leading importers to rely on smaller vessels. Customs delays and stockpiling by importers have further complicated the situation.
Sri Lanka consumes 10,000 metric tons of edible oil monthly, but local production has halved to just 4,000–5,000 metric tons due to economic challenges and reduced purchasing power. Of the 240,000 metric tons of coconut oil consumed annually, only 40,000 tons are locally produced, with the rest supplemented by substitutes.
Over 90% of Sri Lanka’s food processing companies depend on palm oil, which is also found in over 60% of supermarket products. Emeritus Prof. Asoka Nugawela of Wayamba University suggests that palm oil cultivation is economically viable, with minimal evidence linking it to deforestation.
Prompt action is needed to address the price hikes, secure imports, and support the struggling local oil industry.
November 28, Colombo (LNW): Sri Lanka’s Computer Crimes Act (CCA) requires urgent modifications to address modern cybersecurity threats effectively, according to Public Security Ministry Secretary Ravi Seneviratne.
Speaking at the 10th Annual Cyber Security Summit hosted by Daily FT and CICRA, Seneviratne stressed the inadequacy of current mechanisms in combating cybercrime and highlighted the pressing need for legislative updates and enhanced training for law enforcement.
Enacted in 2007, the CCA criminalizes unauthorized access to computers, data, and programs and provides guidelines for investigating and prosecuting such crimes.
However, the Act’s fixed penalties—imprisonment up to five years or fines up to Rs. 300,000—are considered insufficient for addressing the evolving complexity of cybercrimes, such as hacking and cyber-attacks.
Experts also point out the lack of provisions to distinguish between varying degrees of offenses based on their impact, underscoring the need for a “proportional punishment” framework.
Seneviratne admitted that current enforcement mechanisms are outdated and called for legislative reforms to align with evolving cyber threats. A research paper on modernizing Sri Lanka’s cybercrime laws echoes this sentiment, emphasizing the necessity of incorporating principles of proportional punishment to achieve the objectives of criminal law.
The pending Cyber Security Act, which proposes establishing a Cyber Security Agency and granting the Sri Lanka Computer Emergency Readiness Team (SL CERT) enhanced powers, has also been identified as a critical measure.
LankaPay CEO Channa de Silva urged swift parliamentary approval of the Act, noting that SL CERT’s current inability to enforce cybersecurity guidelines leaves organizations vulnerable. De Silva also emphasized the importance of separating military and civilian cybersecurity to safeguard key civilian infrastructure like water and electricity boards.
Highlighting the global dimension of cybercrime, Visa India and South Asia Vice President Vipin Surelia revealed that cybercrime costs are projected to reach $10.5 trillion in 2024, with a staggering annual growth rate of 32%. He identified key drivers behind this trend, including the rise of AI-powered attacks, advanced tools leveraged by cybercriminals, and vulnerabilities in non-traditional payment methods.
The summit underscored the critical need for Sri Lanka to modernize its cybercrime framework and strengthen institutional defenses. Enhancing legislative measures, equipping law enforcement with advanced skills, and segregating military and civilian cybersecurity operations were identified as essential steps to fortify the nation against rising cyber threats.
