For the first time in history, gold prices surged past $3,000 an ounce on Friday, driven by rising demand for safe-haven assets as investors reacted to concerns over President Donald Trump’s tariffs and global geopolitical tensions.
Gold prices peaked at a record $3,005 per ounce before settling slightly below the $3,000 mark.
Jason Hollands, Managing Director at Evelyn Partners, a UK-based wealth management firm, described gold as “the panic asset of choice”, attributing its sharp rise to “the extreme uncertainty facing the global trade system” due to Trump’s aggressive and unpredictable tariff policies and the resulting retaliatory measures from other nations.
The surge in gold prices underscores investors’ growing caution amid economic and geopolitical instability, reinforcing gold’s reputation as a reliable hedge in times of uncertainty.
President Anura Kumara Dissanayake held discussions with officials from the Ministry of Industry and Entrepreneurship Development today (14) at the Presidential Secretariat, focusing on strategies to enhance the efficiency and growth of the manufacturing sector and strengthen the national economy.
According to the President’s Media Division (PMD), the discussions covered government-led investments and regulatory support for small and medium-scale entrepreneurs (SMEs), as well as the establishment of local industrieswithin investment zones. Challenges related to business loans for SMEs were also addressed.
The President directed officials to expedite the release of lands allocated to the ministry that have yet to be made available. Discussions also covered import restrictions, prioritizing local suppliers in construction industry procurement, and resolving gem and jewelry sector challenges to maximize its contribution to the economy.
Additionally, the President instructed officials to implement tax exemptions for tourists as a measure to boost the gem and jewelry industry.
The meeting was attended by Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Deputy Minister Chathuranga Abeysinghe, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and several other ministry officials.
The government is set to implement salary increases and increments for public servants starting in April, as proposed in the 2025 Budget. In light of the Sinhala and Hindu New Year, arrangements have been made to disburse the April monthly salaries on the 10th, ahead of the usual payment date.
Following the passage of the 2025 budget on March 21, the government will issue a circular outlining the increased salaries and incentives within a week. This initiative was first announced by President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Planning, and Economic Development, during the budget presentation to Parliament on February 17.
The Ministry of Public Administration is scheduled to release a detailed circular on March 28, specifying the procedure for disbursing the revised salaries and benefits to public sector employees.
The Japan International Cooperation Agency (JICA) and the Japan Fair Trade Commission (JFTC) have extended their support for policy reforms and institutional improvements in Sri Lanka to ensure the supply of high-quality goods and services while protecting both consumers and producers.
This was discussed during a meeting held today (12) at the Presidential Secretariat, where representatives from JICA and JFTC met with Secretary to the President, Dr. Nandika Sanath Kumanayake.
The representatives highlighted the importance of fair trade policies in fostering a competitive market, ensuring consumer protection, and supporting producers. They also underscored Japan’s economic progress, attributing it to competitive trade policies that promote consumer rights and encourage innovation.
Dr. Kumanayake noted that this year’s national budget has placed significant emphasis on policy adjustments to strengthen fair trade regulations and elevate Sri Lanka’s market competitiveness. He further briefed the Japanese representatives on the government’s planned reforms in this regard.
The Consumer Affairs Authority has released the estimated price ranges for 22 essential food items, which will remain in effect until March 16. The authority has urged both consumers and vendors to comply with these pricing guidelines to ensure fair trade practices and prevent unwarranted price increases in the market.
President Anura Kumara Dissanayake met with officials from the Ministry of Industry and Entrepreneurship Development today (March 14) at the Presidential Secretariat to discuss strategies for enhancing the manufacturing sector and strengthening the national economy.
The discussions focused on investment in small and medium-scale enterprises (SMEs), challenges in accessing business loans, and the need for regulatory reforms to support local industries. The President emphasized the importance of streamlining processes to encourage entrepreneurship and attract investment.
He also instructed officials to expedite land releases for industrial development, address import restrictions affecting local businesses, and implement tax exemptions to boost the gem and jewelry industry. The meeting underscored the government’s commitment to fostering entrepreneurship, investment, and industrial expansion as key drivers of economic growth.
Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, North-western and Southern provinces during the evening or night.Showers or thundershowers may occur at a few places in North-central, Uva and Eastern provinces during the evening or night.
Fairly heavy showers above 50mm can be expected at some places in Western and Sabaragamuwa provinces and in Galle, Matara and Kurunegala districts.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces and in Galle and Matara districts during the morning.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
Having served in a role focused on attracting investment into Sri Lanka during one of its most challenging periods, what stood out to me was the commitment of a few remarkable investors – those willing to risk their capital for long-term returns, largely because of their deep connection and love for the country. Their contributions often go unnoticed. Many of them came to Sri Lanka in a small way, fell in love with the country, and over time decided to invest more of their wealth, even when times were tough.
Sri Lanka’s economic landscape has been shaped not only by large multinational corporations and foreign governments but also by individual investors who have demonstrated unwavering confidence in the country’s potential. Despite economic downturns, political instability, and financial crises, these investors have continued to support Sri Lanka’s development, often taking calculated risks to invest in key sectors. Their efforts have been critical to stabilising industries, creating much-needed employment, and positioning Sri Lanka as a viable and attractive investment destination.
Notable investors/firms
The Kuok family, through their renowned Shangri-La luxury hotel chain, has played a pivotal role in developing Sri Lanka’s high-end tourism sector. Their investments in Shangri-La Colombo and Shangri-La Hambantota were significant votes of confidence in Sri Lanka’s tourism potential. Even in the face of severe setbacks like the Easter Sunday attacks and the economic crisis, these investments remained intact, helping to revive tourism and create employment opportunities.
Nepalese billionaire Binod Chaudhary, founder of CG Corp Global, has been a steadfast investor in Sri Lanka. Through CG Hospitality, Chaudhary has made substantial investments in the hotel industry, including stakes in Jetwing Hotels and other prominent resorts. More recently, his strategic investments in Union Bank and partnerships with John Keells signify his broader commitment to Sri Lanka’s economic landscape. Beyond hospitality, Chaudhary has also explored opportunities in manufacturing and consumer goods, consistently advocating for investment-friendly policies and structural reforms.
The late S.P. Tao, investor in Overseas Realty (Ceylon) PLC, was highly optimistic about Sri Lanka’s growth prospects. He invested $ 100 million to develop the iconic World Trade Centre in Colombo — the largest foreign direct investment (FDI) in Sri Lanka during the 1980s. His family has continued his legacy by investing further in the country, notably through the Havelock City development.
Indian billionaire Gautam Adani, has emerged as a strategic investor in Sri Lanka’s infrastructure sector. The Adani Group’s investment in the West Container Terminal at Colombo Port marks one of the largest foreign direct investments in Sri Lanka’s maritime industry. Adani’s decision to proceed with this investment, despite the country’s financial instability, underscores his confidence in Sri Lanka’s strategic location as a global shipping hub. His entry has also paved the way for broader Indian private sector involvement in critical infrastructure projects.
Pierre Pringiers is another name that cannot be forgotten in Sri Lanka’s industrial development. Pringiers founded Solideal-Loadstar, a tyre manufacturing company specialising in solid tyres for industrial and construction vehicles. Despite scepticism from others who thought investing in Sri Lanka was a mistake, Pringiers persisted. His entrepreneurial journey didn’t stop there—he later ventured into yachting-related businesses at a time when no such market existed in Sri Lanka. Loadstar has since become part of Michelin, and his commitment to the country has remained steadfast. His journey is a testament to resilience and belief in Sri Lanka’s potential.
There are also several other companies and individuals that have made significant contributions to Sri Lanka’s foreign direct investment, helping to create employment and drive exports. In addition, there are foreign HNIs (Mark Mobius) and funds (Norges, Aberdeen, Fairfax and Templeton) invested in the CSE. Dialog Axiata PLC has been a key player in telecommunications and technology. Hambantota International Port Group Ltd. has made substantial investments in port infrastructure. CHEC Port City Colombo Ltd. continues to shape Sri Lanka’s future with one of the largest ongoing Port City Project. Hutchison Telecommunication Lanka has expanded connectivity across the country, while WelcomHotels by ITC has made strategic investments in hospitality.
Ansell Lanka Ltd. and Calzedonia Finanziaria of Luxembourg have been significant players in manufacturing and apparel. Companies like Prima Ceylon, TWS, Continental, Eskimo Fashion Knitwear, Timex Group, and United Tobacco Processing Company from Belgium have also added value to the export sector. Additionally, major multinational corporations/giants such as GSK, Nestlé, BAT, Caltex, IOC, LIC, SCB, HSBC, BOC, A. Baur & Co, Taj Hotels, Huwaei and Ashok Leyland, Unilever have remained invested and committed to Sri Lanka, even during challenging times.
In the technology and BPO space, several companies such as IFS, Virtusa, WNS, and others have contributed significantly to developing Sri Lanka’s services exports. There are several other joint ventures in the garments space led by MAS, Brandix, and Hidramani that have had a huge impact on export development.
Conclusion
Despite Sri Lanka’s economic volatility and political challenges, the individual investors and companies mentioned above have chosen to focus on long-term opportunities. Their sustained presence has created thousands of jobs, contributed to developing key industries, and enhanced Sri Lanka’s infrastructure and tourism appeal. As Sri Lanka moves forward on its path to economic recovery, the continued confidence and commitment of such investors will be vital for ensuring sustainable growth and attracting further international capital. Their stories remind us that beyond balance sheets and returns, there are investors who believe in Sri Lanka’s future and are willing to stand by it—through thick and thin.
References:
https://investsrilanka.com/2024/04/06/boi-marks-45th-anniversary-with-first-ever-awards-recognising-biggest-contributors-to-fdi-and-exports/#:~:text=of Sri Lanka-,BOI marks 45th anniversary with first ever awards recognizing biggest,of Investment of Sri Lanka.
India has provided urgently needed medicines to Sri Lanka in response to an urgent request from Colombo, the Indian High Commission announced on Thursday.
As part of this assistance, India donated 50,000 ampoules of Furosemide injection (20mg/2ml) to address shortages in Sri Lankan hospitals. The consignment was handed over by Indian High Commissioner Santosh Jha to Minister of Health and Mass Media Nalinda Jayatissa.
The Indian High Commission highlighted that India has consistently stood by Sri Lanka during crises, particularly in the health sector. Notably, during the COVID-19 pandemic, India supplied:
Over 25 tonnes of medicines via a special aircraft in May 2020
500,000 doses of Covishield vaccine in January 2021
100,000 Rapid Antigen Test kits in February 2022
Following Sri Lanka’s economic crisis, India extended a USD 1 billion credit facility in March 2022 to support essential imports, including medicines. The facility was subsequently extended until March 2024 at the request of the Sri Lankan government.
Additionally, in April-May 2022, India supplied over 26 tonnes of medical supplies to hospitals, including:
Peradeniya University Hospital
Jaffna Teaching Hospital
Hambantota General Hospital
India has also played a key role in Sri Lanka’s health sector development through various initiatives, including:
The island-wide 1990 Suwa Seriya ambulance service
Construction of a 150-bed multi-specialty hospital in Dickoya
Establishment of a new surgical unit at Batticaloa Teaching Hospital
Infrastructure development and equipment upgrades at hospitals in Jaffna, Kilinochchi, and Mullaitivu
India continues to be a reliable partner in Sri Lanka’s healthcare sector, reinforcing its commitment to strengthening bilateral ties and providing humanitarian assistance.
Samagi Jana Balawegaya (SJB) MP Nalin Bandara told Parliament yesterday that the primary reason for the collapse of the Gotabaya Rajapaksa administration was its oppression of farmers through an overnight ban on chemical fertilizers.
He stated that the effects of this decision continue to harm farmers, with paddy yields in the Maha Season still 37% lower and Yala Season yields down by 30%. This, he emphasized, is the key reason behind the current shortages of tea and coconut.
Bandara further noted that Sri Lanka’s farmer population has drastically declined. While there were 6.5 million farmers in the past, the number has now dropped to 2.3 million, as many have abandoned farming due to financial hardship. He stressed that farmers are now desperate for support and hope the current Government will provide them with relief.
Criticizing Government MPs, Bandara urged them to focus on accurately counting farmers instead of animals, calling for a comprehensive database that records the number of farmers and details of who cultivates each crop. He insisted that maintaining accurate records is crucial for agricultural planning and support.
