In a renewed push to expand its export base, Sri Lanka is turning its focus towards pharmaceuticals, aiming to establish the country as a credible player in the global pharmaceutical market. This goal was at the heart of a recent high-level dialogue between the Sri Lanka Export Development Board (EDB) and the Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA), as stakeholders came together to outline strategies to strengthen the industry and overcome key regulatory and operational bottlenecks.

The local pharmaceutical manufacturing sector, classified as an emerging industry, has already attracted investments exceeding Rs. 100 billion over the past decade. Sri Lanka now hosts around 25 manufacturers, meeting approximately 15% of the country’s domestic pharmaceutical requirements. More than 80% of their production is directed to the Government’s Medical Supplies Division. In 2023, pharmaceutical exports totaled $8.07 million — a modest figure, but one that signals increasing global interest.

The discussion brought together several key industry players including SLPMA President Nalin Kannangara, Senior Vice President Dinesh Athapaththu, Vice President Viraj Manatunga, and executives from leading firms such as Navesta Pharmaceuticals, Sands Active Ltd., and Gamma Interpharm Ltd.

Highlighting the sector’s potential, Kannangara noted that the 23 member companies of SLPMA collectively supply around 35% of the pharmaceutical needs of government hospitals and locally produce over 235 products. However, he cautioned that global expansion is constrained by the need to comply with rigorous international regulatory standards — a major hurdle in the highly controlled pharmaceutical landscape.

To tackle this, Kannangara called for the extension of the Government’s buyback agreement, which had enabled the dramatic scale-up from just 15 locally made products in 2015 to 235 by 2025. Extending this agreement would help boost production volumes, lower unit costs, and significantly improve global competitiveness.

The stakeholders also highlighted the complexity involved in exporting pharmaceuticals compared to other goods. Exporting medicines typically requires time-consuming and costly registration processes with foreign medical regulatory authorities. Additionally, documentation such as Good Manufacturing Practices (GMP) certificates and product registration papers must be authenticated by the respective embassies in Sri Lanka. To ease this process, the industry called for stronger institutional support from the government.

Vice President Manatunga, who also chairs the EDB’s Pharmaceutical Advisory Committee, emphasized the need for a clear and cohesive national strategy for the sector. He noted the EDB’s collaboration with the Ministry of Health and the World Health Organization (WHO) in crafting a strategic roadmap — now in its final stages — under an Asian Development Bank (ADB)-funded initiative.

He stressed that swift implementation of this strategy is essential to unlocking the industry’s potential for export-led growth.

Concluding the meeting, EDB Chairman and CEO Mangala Wijesinghe urged industry players to submit their key challenges for consideration at the upcoming Export Development Council of Ministers (EDCM) meeting, chaired by President Anura Kumara Dissanayake. This, he said, would ensure high-level policy intervention to elevate Sri Lanka’s pharmaceutical industry onto the global stage..

Sri Lanka is set to become the regional hotspot for combat sports as Karma Fight League (KFL), South Asia’s largest K-1 fight league, returns with its fifth major event on July 25 at Cinnamon Life, Colombo’s premier lifestyle and entertainment hub.

The high-octane evening will unfold at the Lumina Ballroom, featuring a thrilling lineup of male and female fighters from Sri Lanka, India, Nepal, and Australia. In a bold new addition, the event will launch the KFL Extreme Championship, a new category dedicated to showcasing the most promising young Sri Lankan fighters, offering them a powerful platform to step onto the international stage.

This event marks a pivotal moment not just for Sri Lanka’s growing combat sports scene, but also for the country’s ambitions to emerge as a sports tourism destination. With international athletes and fans expected to attend, the event aligns with broader efforts to brand Colombo as a lifestyle and entertainment capital in South Asia.

Cinnamon Life, part of the visionary “City of Dreams” project, will serve as both the venue and hospitality partner, initiating a strategic partnership with KFL. “We are thrilled to be part of this groundbreaking event,” said Sanjiv Hulugalle, CEO and General Manager of Cinnamon Life. “Just as KFL is redefining combat sports in Sri Lanka with bold innovation, Cinnamon Life is reimagining authentic Sri Lankan hospitality. This collaboration brings both experiences together, promising a truly unforgettable night.”

The Karma Fight League has quickly gained a reputation for delivering world-class production and high-intensity matches. With increasing viewership and participation across the region, its expansion to Sri Lanka underscores the island’s potential to become a regional hub for action sports.

 The upcoming event is expected to attract sports enthusiasts, tourists, and media attention, creating economic ripple effects in the hospitality, travel, and entertainment sectors. Tickets are now available online, with strong demand anticipated in the lead-up to fight night.

As Colombo continues to host major international events like this, it reinforces Sri Lanka’s place on the global sporting map—blending competition, culture, and commerce in one adrenaline-filled spectacle.

Sri Lanka must act urgently to implement bold economic reforms or risk sliding back into crisis, according to a new report by the Independent Growth Study Group.

The study identifies deep structural weaknesses in the economy and emphasizes that short-term gains such as reduced inflation and successful debt restructuring will remain fragile unless transformative policies are enacted swiftly.

The report is particularly relevant as Sri Lanka prepares to face a severe setback with a 44% U.S. tariff set to take effect on August 1—threatening to wipe out 50,000 jobs in the export sector.

Titled “Sustaining Transformative Growth in Sri Lanka 2025-2030”, the report provides a comprehensive roadmap for rebuilding the nation’s economy after its most severe economic crisis in decades.

The study was compiled by nine prominent economists and development experts, under the guidance of ODI Global and the Centre for Poverty Analysis (CEPA).

The report lays out six interconnected policy pillars essential for long-term growth: maintaining macroeconomic stability, deeper global trade integration, reforms to labour and capital markets, targeted sectoral strategies, poverty alleviation, and achieving political consensus.

While recognising recent progress in stabilising inflation and public finances, the study highlights Sri Lanka’s vulnerability due to limited exports and low productivity. Dr. Ganeshan Wignaraja, ODI Global Visiting Senior Fellow and convenor of the study group, stressed the need for proactive leadership. “Sri Lanka has shown resilience, but prosperity requires bold action. This report offers a blueprint for growth that benefits all Sri Lankans,” he said.

The study identifies four key growth sectors—tourism, the digital economy, modern agriculture, and niche manufacturing—as drivers to boost exports, create employment (especially for youth and women), and attract foreign investment.

However, looming trade barriers threaten this progress. Dr. Wignaraja raised alarm over the incoming 44% U.S. tariff on Sri Lankan exports, warning it could result in the loss of 50,000 jobs. “This is a serious blow to thousands of families and underscores the urgency for reform and global trade diversification,” he noted.

CEPA Executive Director Prof. Sirimal Abeyratne echoed concerns over Sri Lanka’s poor export performance. “An entrenched anti-export bias and complex regulations are stifling growth. Removing these barriers is critical for attracting investment and enhancing global competitiveness,” he explained.

The report also draws international attention. Prof. Dirk Willem te Velde of ODI Global said Sri Lanka’s recovery process can serve as a model for other emerging economies. “This is a moment for bold, pragmatic leadership and decisive reforms. With development partner support and internal political will, Sri Lanka can realise sustainable prosperity,” he said.

The final chapter of the report underscores the importance of implementing the recently passed Economic Transformation Act, enhancing the capacity of public institutions, and targeting at least 5% annual growth over the next five years to reduce poverty and avoid another debt crisis.

To reach a broader audience, the report will soon be published in Sinhala and Tamil and distributed across Sri Lanka. A digital version is currently available on the ODI Global website: www.odi.org/publications/sustaining-transformative-growth-in-sri-lanka-odi-cepa.

Sri Lanka’s apparel sector has received a significant boost from the United Kingdom at a critical time, as the industry faces mounting pressure from a looming 30% US tariff.

With apparel being the island’s top export earner, the duty-free access granted by the UK under its new Developing Countries Trading Scheme (DCTS) offers much-needed relief.

This development provides a vital counterbalance to the potential negative impact of US trade actions, opening up a clearer path for the industry’s recovery and growth.

The UK announced on July 10 that Sri Lanka will enjoy duty-free access for apparel exports under its “Trade for Development” initiative.

The scheme introduces liberalized “rules of origin” starting in early 2026, allowing Sri Lankan manufacturers to source more inputs from a broader range of Asian and African countries while still qualifying for tariff-free exports to the UK.

This shift means that garments produced in Sri Lanka can now incorporate materials from more countries without losing duty-free status—an enormous advantage for a sector that depends heavily on imported fabrics and accessories.

 The UK’s DCTS replaces the earlier GSP+ system post-Brexit and extends benefits beyond garments to a range of Sri Lankan exports, with over 99% of eligible products qualifying for zero tariffs.

British High Commission officials stressed that this move supports both trade and development. “This scheme is not just about boosting trade; it’s about supporting sustainable development,” said Mara Waters, Director of Trade at the British High Commission in Colombo. “For Sri Lanka, it’s about building economic resilience, creating jobs, and ensuring that the benefits of trade reach the entire community.”

Between July 2023 and May 2024, goods worth £571 million were exported from Sri Lanka to the UK, with £304 million benefiting directly from DCTS concessions—demonstrating the scheme’s immediate impact.

Yet, challenges remain. The Joint Apparel Association Forum (JAAF) has raised concerns that the current rules of origin under DCTS, though improved, still resemble the restrictive framework of GSP+, limiting full utilization of duty-free privileges.

JAAF advocates for “extended cumulation,” a mechanism that would allow more flexible sourcing of raw materials across multiple countries. Currently, only about 50% of Sri Lankan apparel exports qualify for zero tariffs. A shift in these rules, such as eliminating the “double transformation” requirement, could dramatically expand duty-free access.

Sri Lanka’s apparel sector, especially SMEs, also struggles with capital constraints and rising sustainability standards demanded by markets in the UK, EU, and US. These firms need support to modernize operations, invest in clean energy, and enhance supply chain transparency.

Nevertheless, the DCTS presents a timely opportunity. As Sri Lanka recovers from economic crisis, boosting apparel exports is vital. With strengths in ethical sourcing and design, the country is well-placed to meet shifting global demand—provided it can fully leverage schemes like the DCTS while navigating challenges posed by other markets like the US.

• 30% US tariff on Sri Lankan rubber products effective 1 August threatens $1B export industry

• Tyre and glove exports at risk as competitors enjoy lower tariffs

• Over 150,000 livelihoods in rural Sri Lanka could be impacted without urgent intervention

Health Minister Dr. Nalinda Jayatissa met with United States Ambassador to Sri Lanka Julie Chung in Colombo on Thursday (11), where the two officials held discussions focused on strengthening and expanding Sri Lanka’s healthcare system for the benefit of all citizens.

During the meeting, Ambassador Chung expressed the United States’ continued commitment to supporting Sri Lanka’s health sector, noting that numerous US-based donors are ready to contribute medicines and essential medical supplies to local hospitals.

Minister Jayatissa conveyed his sincere appreciation for the invaluable assistance provided by the US Government, particularly through the regular supply of medicines and medical equipment. He also welcomed the offer of technical expertise and knowledge sharing to enhance the healthcare system’s efficiency and resilience.

The Minister raised the issue of rising dengue and chikungunya cases, highlighting that the Government has taken all feasible preventive measures, including community outreach. “The Health Department conducts seminars and health camps to raise public awareness, and these efforts are already showing positive results,” he said.

Reflecting on the historical ties between the two nations, Minister Jayatissa noted that the Thriposha nutritional programme, which continues to benefit Sri Lankan children, was made possible through the establishment of a US-supported manufacturing facility in 1973.

In addition to health-related topics, the Minister informed the Ambassador about ongoing efforts to foster a positive media environment in the country, including the proposed establishment of a Chartered Media Institution to support and uplift professional standards in the media sector.

Ambassador Chung responded positively, reaffirming that the US Government is keen to assist both Sri Lanka’s healthcare and media sectors, especially by sharing knowledge, resources, and advanced technologies to support national development goals.

President Anura Kumara Dissanayake has called for the integration of political leaders and public officials into a unified system to accelerate development and uplift the people’s standard of living. Speaking at the Hambantota District Special Coordination Committee meeting held yesterday (11) at the District Secretariat auditorium, the President emphasised that “no one can work in isolation” and urged all parties to support the government’s initiatives aimed at serving the public interest.

During the meeting, President Dissanayake conducted a comprehensive review of district development issues in sectors such as agriculture, fisheries, education, health, rural roads, irrigation, and land use. Despite a Rs. 574 millionallocation to Hambantota under the 2025 Southern Province Development Programme, it was revealed that only Rs. 23 million — just 4% — had been utilised so far. The President questioned officials over the poor progress and stressed the urgency of effectively using the funds to meet public needs within this year.

The President criticised irregular land allocations and directed officials to develop a system where land is granted to individuals for productive economic purposes, not to agencies for bureaucratic ownership. He also instructed a comprehensive review of the district’s school system, calling for a data-driven, realistic education plan that ensures quality and equitable access.

President Dissanayake further noted that challenges in the public service, including staff shortages, would be addressed through the recruitment of 30,000 new public servants after a five-year hiatus. He assured that provisions would be made in the upcoming budget to equip Divisional Secretaries and officials with essential vehicles for administrative work.

The digitalisation agenda was another key focus, with the President stressing that development today is measured by technology, not buildings. He announced that September will be declared the “Month of Digital Culture”, marking a national campaign to foster digital awareness and transformation. He highlighted the introduction of the Digital IDas a milestone in redefining Sri Lanka’s global identity.

The Hambantota Elephant Management Reserve and the implementation of an elephant corridor project were also discussed, with the President affirming his commitment to acquiring necessary lands for wildlife conservation. Additionally, he vowed to secure Rs. 70 million in funding for the completion of the kidney unit at Hambantota District General Hospital.

The session concluded with the participation of several key officials and MPs, including Governor Bandula Harischandra, MPs Nihal Galappaththi, Aravinda Witharana, Athula Welandagoda, and Saliya Sandaruwan Madurasinghe, as well as Provincial Deputy Minister Ruwan Prabha Senarath, and senior government and security officials from the Hambantota District.

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British High Commissioner to Sri Lanka Andrew Patrick has stated that the United Kingdom’s new trade measures will create a mutually beneficial situation for both Sri Lanka and the UK. Speaking on the Developing Countries Trading Scheme (DCTS), he encouraged Sri Lankan exporters to take greater advantage of the trade preferences being offered.

“This is a win for the Sri Lankan garment sector and for UK consumers. With the UK being Sri Lanka’s second-largest export market, and garments accounting for over 60% of that trade, manufacturers here will no doubt welcome this announcement,” he said.

The High Commissioner further emphasised the UK’s intention to support Sri Lanka in expanding its export portfoliounder the DCTS beyond the garment industry. He noted that the simplification of rules of origin across multiple sectors presents new opportunities for Sri Lankan exporters.

“We want Sri Lanka to improve the utilisation of the UK’s DCTS for a wider range of goods, not just garments,” he added.

Highlighting the Sri Lankan government’s ambition to boost exports, Patrick stressed the UK’s continued support in fostering shared prosperity between the two nations.

The DCTS is part of the UK’s post-Brexit trade strategy aimed at strengthening economic ties with developing countries by offering preferential access to the British market, thereby encouraging sustainable economic growth.

Examinations Commissioner General Indika Kumari Liyanage yesterday (11) announced that 237,026 students have qualified for the G.C.E. Advanced Level, based on the results of the 2024 G.C.E. Ordinary Level Examination. This figure accounts for 73.45% of the total number of candidates who sat the exam.

Speaking at a press conference held at the Department of Examinations, she stated that 13,392 students had achieved A passes in all nine subjects, representing 4.15% of the overall candidate pool.

However, she also noted that 2.34% of students did not pass any subjects, underscoring the need for targeted intervention and support in underperforming areas.

According to the Commissioner General, the Southern Province recorded the highest pass rate, with 75.64% of students qualifying for A/Ls, reflecting strong academic performance across the region.

The press conference followed the official release of the 2024 O/L examination results, which are now accessible via the websites www.doenets.lk and www.results.exams.gov.lk. Students seeking further assistance or information have been advised to contact the Department of Examinations via the designated hotlines.

Applications for result re-scrutiny will be accepted from July 14 to July 28.

A total of 474,147 students sat for the examination this year, comprising 398,182 school candidates and 75,965 private applicants, with exams conducted across 3,663 centres island-wide from March 17 to 26.