By: Staff Writer

March 12, Colombo (LNW): Strong governance, policy stability and institutional credibility will determine whether Sri Lanka can attract long-term investment as it moves beyond its recent economic crisis, Mark Tucker, Chairman of AIA Group, said yesterday.

Addressing business leaders at a forum organised by the Sri Lanka Institute of Directors at Port City Colombo, Tucker warned that investors ultimately base their decisions on trust in governance systems and policy consistency.

“Capital only flows where there is trust,” he said, stressing that even strong economic opportunities can fail to attract investment if governance standards are weak or policy frameworks appear unpredictable.

Sri Lanka has made significant progress in stabilising its economy following the recent financial crisis, he acknowledged. However, the next stage of development will require deeper reforms to ensure that investors perceive the country as a reliable long-term destination for capital.

Tucker pointed out that investors typically make decisions over decades rather than months, meaning they require stable rules, transparent processes and consistent policy implementation.

In the past, some investors have faced regulatory shifts, project cancellations and policy uncertainty in Sri Lanka, he noted. Such issues increase execution risks and can slow the flow of capital into the economy.

To rebuild confidence, he recommended creating a stable regulatory environment with clearly defined rules that remain consistent over time. Streamlining approval procedures and strengthening institutional governance would also improve the investment climate.

Corporate governance within businesses is equally important. Tucker said company boards must reinforce oversight mechanisms covering risk management, financial controls, organisational culture and cyber resilience.

He also emphasised the role of sustainability and climate-related investment standards in shaping global capital flows. Increasingly, investors are directing funds toward projects aligned with environmental and sustainability goals.

As a result, new financing mechanisms such as green bonds, blended finance structures and regulated infrastructure investment vehicles are becoming important tools for funding large-scale development initiatives.

Tucker suggested Sri Lanka could also tap into the financial and intellectual resources of its global diaspora. Beyond capital, diaspora communities possess expertise, entrepreneurial networks and international experience that could help accelerate economic development.

Structured investment channels connecting diaspora investors with key sectors such as services, energy and technology could unlock new sources of funding.

Another critical driver of growth, he said, is human capital. Sri Lanka’s skilled workforce represents one of its strongest advantages, but continued investment in education, talent development and digital infrastructure will be necessary to maintain competitiveness.

Global economic trends are also shifting in ways that could benefit Sri Lanka. Trade and investment flows are increasingly centred around the Indian Ocean region, with rapid growth across South Asia, the Middle East and Association of Southeast Asian Nations economies.

Positioned along one of the world’s busiest shipping routes, Sri Lanka could leverage its geographic advantage to develop as a regional hub for trade and services.

For that potential to materialise, Tucker concluded, Sri Lanka must focus on strengthening governance, ensuring policy predictability and investing in people steps that will ultimately determine whether the country can reconnect with global capital markets.

By: Staff Writer

March 12, Colombo (LNW): As Nestlé Lanka celebrates 120 years of operations in Sri Lanka, the multinational food company is not only expanding manufacturing but also deepening its focus on sustainability, agriculture and youth employment.

The company recently announced a Rs. 9 billion investment plan to upgrade its manufacturing capacity over the next four years, primarily at its production facility in Pannala. While part of the investment will strengthen local supply chains, a major component is aimed at expanding export-driven production.

Chairman and Managing Director Bernie Stefan said the company views Sri Lanka not only as a domestic consumer market but also as a strategic export hub within its South Asian operations.

One of the fastest-growing export products is coconut milk powder, which has seen rising international demand due to the global shift toward plant-based foods. Markets in the United States, China, and parts of Europe are increasingly embracing coconut-based alternatives to dairy.

Nestlé Lanka is already among Sri Lanka’s leading exporters of coconut milk powder, and the company plans to scale up production to meet growing demand.

Beyond exports, the company is also investing heavily in local agricultural partnerships. Nestlé Lanka works with more than 7,000 dairy farmers and purchases about 130 million coconuts each year, creating income opportunities for thousands of rural households.

Through its Coconut Cultivation Board partnership, the company operates the Nestlé Coconut Development Plan, which provides farmers with hybrid coconut seedlings, fertiliser support and training in regenerative agricultural practices.

More than 5,000 coconut growers have benefited from the program so far, helping improve productivity and sustainability within the sector.

Youth development has also become a major focus area. Through the global Nestlé Needs Youth initiative, the company partners with universities and career-development programs to help young people transition into the workforce.

According to Stefan, around 10,000 students have been reached through mentorship programs, internships and university collaborations.

“Many professionals who began their careers with Nestlé have gone on to succeed across various industries,” he noted, describing the initiative as an investment in the country’s future workforce.

Environmental sustainability is another key pillar of Nestlé Lanka’s long-term strategy. The company has announced plans to become 100 percent plastic neutral by 2026, meaning that it will collect and recycle an amount of plastic equal to the packaging it releases into the market.

This initiative aligns with the global Nestlé commitment to achieve net-zero carbon emissions by 2050.

At the local level, Nestlé Lanka has introduced several environmental measures, including biomass boilers and renewable electricity at its manufacturing plant and shifting portions of its logistics operations to rail transport to reduce carbon emissions.

With its latest investment, the company aims to combine industrial expansion with social and environmental initiatives strengthening its role not only as a manufacturer and exporter, but also as a long-term development partner in Sri Lanka’s economy.

By: Staff Writer

March 12, Colombo (LNW): Sri Lanka’s decision to expand Public-Private Partnerships (PPPs) in the health sector has triggered a growing debate about the long-term future of the country’s free public healthcare system.

While the government insists the initiative is intended only to improve efficiency and expand services, critics warn that outsourcing key medical services to private operators could gradually reshape the foundations of the state-run healthcare model.

The proposed reform centres on a plan to outsource certain high-cost diagnostic and treatment services within government hospitals to private providers under performance-based contracts. Officials say the arrangement will allow hospitals to access advanced technology such as CT scanners, MRI machines, catheterisation laboratories and automated laboratory equipment without requiring the state to finance the full investment.

To facilitate these initiatives, the Ministry of Finance is preparing to establish a new unit responsible for implementing PPP projects. The body will replace the National Agency for Public-Private Partnership (NAPPP) and is expected to operate under new legislation aimed at streamlining project approvals and attracting private investment.

Authorities argue that the shift is necessary due to fiscal constraints and complex procurement procedures that often delay the acquisition of specialised equipment. Demand for advanced diagnostics has also surged as non-communicable diseases increasingly dominate Sri Lanka’s health profile.

Another component of the programme involves expanding haemodialysis services. Although roughly 80 government hospitals currently offer dialysis treatment, health authorities acknowledge that capacity remains inadequate for the growing number of patients suffering from kidney disease.

Under the proposed model, private partners would manage dialysis machines and supply medical consumables while the government continues to provide hospital infrastructure and clinical supervision.

Cabinet has already approved the framework for obtaining diagnostic services and equipment through PPP agreements, subject to existing procurement rules and a performance-based payment mechanism.

Government representatives emphasise that the reforms do not amount to privatisation. According to officials, patients will continue to receive treatment free of charge at public hospitals even when services are delivered through privately operated equipment.

However, observers remain cautious. Some analysts argue that increased reliance on private operators could gradually introduce commercial dynamics into public healthcare delivery, potentially influencing pricing, access, and policy decisions over time.

The debate is unfolding as Sri Lanka’s private healthcare industry expands rapidly. The sector currently includes about 55 private hospitals with inpatient facilities along with numerous specialised services, making it an influential player in the national health ecosystem.

Industry representatives have welcomed the government’s willingness to deepen collaboration. They argue that structured partnerships could help modernise healthcare infrastructure while also positioning Sri Lanka as a competitive destination for medical tourism.

Private sector leaders have also called for policy changes to support the industry’s growth, including reduced tariffs and taxes on imported medical equipment.

Nevertheless, some health policy observers caution that the expansion of PPP arrangements must be carefully regulated to ensure that private interests do not overshadow the public health mission.

Sri Lanka’s free healthcare system has long been considered one of the country’s most significant social achievements. As the government turns increasingly toward public-private collaboration to address financial and technological gaps, the central question now emerging is whether these partnerships will strengthen the system or quietly transform it.

By: Staff Writer

March 12, Colombo (LNW): Sri Lanka’s electricity sector has entered a turbulent phase as the restructuring of the Ceylon Electricity Board (CEB) into six state-owned companies gathers momentum under the economic reform program negotiated with the International Monetary Fund (IMF). While the government presents the move as a necessary modernization effort to stabilize the power sector, engineers warn that confusion over employee roles threatens operational stability.

The immediate concern stems from a complaint by the Ceylon Electricity Board Engineers’ Union (CEBEU), which says many staff members have not yet received formal appointment letters confirming their positions within the newly created companies.

According to the union, although the restructuring has formally dissolved the traditional CEB structure, thousands of employees who previously worked under the state utility remain uncertain about their employment status.

Some workers have been issued “assignation letters,” but the union says that these documents merely indicate the institution to which an employee has been temporarily attached and do not define job responsibilities, authority, reporting lines, or employment conditions.

Engineers warn that the absence of a clear legal and administrative framework has created operational confusion. In some cases, employees are reluctant to carry out certain functions without written confirmation of authority, fearing legal or disciplinary consequences in the future.

Despite these concerns, the union says staff involved in essential services including electricity generation, transmission, and distribution continue to work to maintain power supply. However, engineers caution that restoration work after breakdowns could take longer due to the uncertainty.

The restructuring program is part of Sri Lanka’s broader economic recovery plan under the IMF bailout agreement signed after the country’s 2022 financial crisis. One of the key reform conditions is improving the financial viability and governance of major state-owned enterprises.

Supporters of the reform argue that unbundling the CEB into separate generation, transmission, and distribution companies could introduce transparency, improve efficiency, and reduce political interference. Advocates say the move may also encourage investment in renewable energy and modern infrastructure.

Critics, however, warn that poorly managed restructuring could disrupt operations and undermine worker morale. Trade unions also fear the move could pave the way for partial privatization in the future.

Adding a layer of political irony is the fact that the current reform is being implemented under the government led by the National People’s Power (NPP), whose leading component, the Janatha Vimukthi Peramuna (JVP), historically opposed similar reforms when proposed by previous administrations.

Analysts say the current standoff highlights the challenge of balancing economic reforms with institutional stability. Possible solutions include issuing immediate formal appointments to all employees, establishing clear governance frameworks for the new companies, and initiating structured dialogue between the government and unions.

Without such measures, the electricity sector risks becoming another flashpoint in Sri Lanka’s difficult path toward economic recovery.