In late February and early March 2016 Sri Lanka suffered a series of island-wide power outages, setting off a cascade of automatic shutdowns across the country’s power generation and transmission infrastructure. Some facilities – including the 900-MW Puttalam coal plant in Norochcholai, the largest power plant in the country – were offline for more than three days while the Ceylon Electricity…
In a post on Twitter in late November 2015, Sri Lanka’s president, Maithripala Sirisena, wrote, “[Sri Lanka] has great potential to generate renewable energy, and it’s essential that we encourage and inspire investors’ focus towards it.” The statement served to reiterate the government’s commitment to the development of sustainable energy sources and, more broadly, to comprehensive energy…
The offshore Mannar Basin has seen an influx of energy-related activity in the past decade. Since 2007 exploration carried out in Mannar – which is part of the Laccadive Sea and the Indian Ocean – has yielded evidence of considerable oil and gas deposits. As of early 2016, however, commercial production has not yet started, and Sri Lanka continues to meet its hydrocarbons demand through imports,…
Already at the forefront of digital innovation, and boasting internet penetration rates much higher than those of its regional neighbours, Sri Lanka is slated to become the first country with universal broadband coverage, as a result of a government initiative to provide internet services nationwide, in addition to a highly publicised partnership with tech giant Google. Although these services will…
In recent years Sri Lanka’s health authorities have moved forward with a variety of projects aimed at integrating digital technology into the health sector. In 2015 the government oversaw the operation of 12 e-health pilot projects around the country, which involved initiatives related to the introduction of a national health ID number for all citizens; the development of a Hospital Information Management…
In addition to serving as a source of government revenue, taxation helps bridge the wealth gap. Taxation is also used as a disincentive on the consumption of demerit goods. Inflation rates and the balance of payments can be controlled and maintained with taxation, which can pave way for further economic growth and development. Simplifying The Tax System The tax system in Sri Lanka contains import…
Since 1994 Sri Lanka has allowed non-resident investment in most sectors of the economy, and its foreign direct investment (FDI) regime was seen for many years as one of the most open in Asia. In the recent past, however, the government has consistently not met its FDI targets, and 2015 saw a marked downturn. The reasons for this declining trend are debatable, but many consider that several important…
Spanning 65,000 sq km and with a moderate climate, fertile soil and an abundant supply of groundwater, Sri Lanka has long benefitted from favourable agricultural conditions. The sector remains an economic mainstay and primary national employer. As manufacturing and industrial activities have expanded, agriculture’s position as the primary economic engine has been eroded in recent years, although…
Sri Lanka, the “Wonder of Asia”, formerly known as Ceylon, has long served as an important strategic destination in the Indian Ocean, catering to merchants and travellers from South-east Asia, India, the Middle East and East Africa. The island was visited and marvelled at by the likes of Marco Polo, who called it “the finest island of its size in the world”, long before the arrival of imperialist…
Billed as a platform for ending corruption and nepotism at the highest levels of government, the presidential elections of January 2015 ended the controversial 10-year executive presidency of Mahinda Rajapaksa. The former president enjoyed enormous popularity in the aftermath of the country’s civil war and during the economic revival that followed, but was subsequently criticised for his gradual…
