AGP Executive Report

Renewables & Storage: Sri Lanka is preparing a major renewable push, targeting 2,700 MW of new clean power by 2029, including 1,392 MW solar, 370 MW wind and 1,000 MW battery storage—while officials warn rooftop solar growth is creating grid-management headaches that may require temporary output limits. Battery Import Relief: The government is also considering import concessions for batteries to cut costs and speed up energy storage adoption for solar and other renewables. Telecom Connectivity: Dialog Axiata launched a 5G Ultra MiFi with eSIM and Wi‑Fi 6, aiming to boost portable high-speed internet for homes and businesses. SIM Registration Crackdown: TRCSL is tightening SIM registration with stricter identity checks, including live photo verification, to curb illegal SIM use. Digital Finance for Agriculture: UNDP and Visa are starting a seven-month digital finance pilot for 50 young (mostly women) agricultural producers at Hope Estate, adding financial literacy and support for bank accounts and digital payments. Trade & Industry Links: EDB and University of Kelaniya launched a joint initiative to boost the electronics export sector. Manufacturing Win: Sri Lanka manufactured its first amphibious vessel for export to Europe, unveiled at Koggala Free Trade Zone, signaling a push to build marine manufacturing capacity. Energy Cooperation Talk: A BIMSTEC policy roundtable in New Delhi urged aligning policies and regulation to advance regional electricity cooperation, with Sri Lanka among member states. Labour Mobility: Thailand is opening a legal route to recruit 10,000 Sri Lankan workers under bilateral labour agreements, with contracts, medical checks, insurance and work permits. Market Pulse: Sri Lankan shares edged up as basic materials and industrials led gains, while foreign investors were net sellers.

Tea Exports & Logistics: TEA’s 27th AGM says Ceylon Tea exports stayed resilient despite disrupted shipping routes (about 85% affected), higher freight costs, and production/quality pressures, with hopes to restore volumes to 350 million kilos by 2030 if green-leaf supply improves. Conservation with Livelihoods: WNPS and UNDP-BIOFIN marked the first livestock insurance payout for leopard-related losses and started predator-proof cattle pens in Sigiriya to reduce retaliatory killings. Electronics Export Push: EDB and University of Kelaniya launched a first-of-its-kind joint initiative to support electronics exporters with R&D, IP help, and AI tools for new product development and marketing. Power Grid Stress: Rooftop solar growth is creating new grid stability headaches for CEB as midday surges strain network balancing. Apparel Trade Facilitation: Brandix CEO urges Customs pre-clearance to cut clearance delays and protect Sri Lanka’s export competitiveness. Maritime Manufacturing Breakthrough: Sri Lanka shipped its first locally manufactured amphibious vessel to Europe, signaling a new export pathway for naval-adjacent engineering. Energy Costs Watch: Oil prices edged toward $110 as Middle East conflict risks supply disruption, raising costs for Sri Lanka’s import-dependent economy. Forced Labour Compliance Risk: A new wave of forced-labour import bans is raising border delays and market-access risks for sectors including electronics, agriculture/food, and apparel.

Amphibious Shipbuilding Export: Sri Lanka exported its first high-tech amphibious vessel, built at Koggala Free Trade Zone by Ocean Voyager International, aiming to turn naval manufacturing into an export-led foreign exchange earner. Maritime Regulation Push: US Federal Maritime Commission chair Laura DiBella urged Sri Lanka to set up an independent maritime regulator to ensure fair competition, curb cartel behaviour and boost investor confidence as Colombo strengthens its logistics role. Trade & Agriculture Links: Bangladesh will send a delegation to Sri Lanka to assess potato and onion export potential, following talks on prices and supply-chain challenges. Migrant Housing Finance: Under the “Ethera Diriya” scheme, Sri Lankan migrant workers can get housing loans of Rs.500,000–Rs.10m via DFCC Bank and Union Bank, with interest reimbursement support planned for 2027. Power Project Scrutiny: Questions are raised over the financing structure of the US$291m Sahasdhanavi 350MW project, with most funding expected to be debt. Consumer Standards Enforcement: A Bandarawela shopping centre was fined Rs.400,000 for selling non-SLS-certified extension cords without required documentation. Extreme Weather & Biodiversity: Researchers warned that El Niño-driven droughts, floods and heat are stressing Sri Lanka’s ecosystems, with impacts discussed for policy action. Fintech Expansion: PhonePe and Visa launched cardless payment solutions including Tap to Pay and Cross Border Scan to Pay, with Sri Lanka listed among target markets. Rupee Moves Slightly: The rupee edged up against the US dollar, offering modest relief for import costs.

Connectivity & Telecom: JKOA and Dialog Axiata launched the JKOA Classic 4G to bring 4G access to Sri Lanka’s feature-phone users, aiming to keep connectivity affordable as networks evolve. Agriculture & Food Systems: A fourth-generation MCI Hybrid Pellet Fertiliser and Biofilm Biofertiliser programme advanced in paddy cultivation via a public–private rollout, with farmers briefed on scientific application. Fisheries Policy: Sri Lanka presented fisheries policy proposals at FAO COFI 37 in Rome, pushing for stronger stock assessment, better data-driven management, and protection for small-scale fisheries. Energy Investment: BOI registered an agreement with Sahasdhanavi Limited for a 350 MW combined-cycle power plant at Kerawalapitiya, a US$291m project expected to create over 1,100 jobs. Shipping & Trade: Port of Colombo was named among the world’s Top 20 container ports, with calls to keep improving to stay competitive. Corporate & Aviation: SriLankan Airlines appointed Vipul Misra as acting CEO, while Sri Lanka’s business and tech scene also saw new AI and enterprise events and a fintech cardless payments push via PhonePe–Visa. Labour Mobility: Thailand approved a framework to bring 10,000 Sri Lankan workers to address labour shortages under safer, legal hiring rules.

BOI Power Deal: Sri Lanka’s Board of Investment has registered an agreement with Sahasdhanavi Ltd. for a 350 MW combined-cycle plant at Kerawalapitiya Industrial Zone, a US$291.19m BOOT project expected to reach full output in 42 months and create 1,147 jobs; it will start on diesel and be able to switch to RLNG when infrastructure is ready. Aviation Leadership: SriLankan Airlines appointed Vipul Misra as Acting CEO, bringing 20+ years of aircraft engineering and airline leadership experience to guide interim turnaround efforts. Energy Policy: PUCSL is consulting on battery energy storage-inclusive feed-in tariffs, with proposed rooftop solar-plus-BESS rates that could face pushback as they’re higher than competitive tender outcomes. Fisheries Diplomacy: Sri Lanka presented fisheries policy proposals at COFI 37 in Rome, focusing on sustainable marine management, tackling IUU fishing, and protecting small-scale fisheries. Consumer Enforcement: Islandwide inspections found underweight bread violations at 54 outlets, spotlighting compliance gaps in the bakery supply chain. Trade Friction: Importers are urging action to release nearly 1,000 vehicles stuck in a cross-border LC dispute. Digital Payments: PhonePe and Visa launched Tap to Pay, Cross Border Scan to Pay, and Smart Accept, expanding cardless payments for consumers and micro-merchants. Market Pulse: Utilities and industrials dragged Sri Lankan shares lower, with the ASPI closing down 0.35%.

AI & Digital Services: Roar Global launched Roar AI, Sri Lanka’s first AI gateway, bundling 200+ frontier/open-source models with locally hosted deployment, usage controls, and billing in LKR for predictable spend. Enterprise Tech Partnerships: SEBSA and Addovation formed a strategic partnership to support IFS customers globally with senior specialists across markets. SME Finance Push: Commercial Bank marked NCGIL’s 2,000th guarantee milestone, disbursing Rs. 2.97bn and backing MSMEs, including women-led businesses via Liya Shakthi. Renewables & Power Costs: Regen Renewables reaffirmed its Suntech Power partnership as LAUGFS Power warned that tighter grid rules and rupee depreciation are raising renewable project costs and timelines. Labour Mobility: Sri Lanka and Thailand moved toward formal bilateral labour and employment agreements for up to 10,000 workers, aiming for regulated recruitment and clearer protections. Water & Climate Risk: El Niño-linked drinking water shortages are affecting 115,000+ people across multiple districts, with reservoir levels falling. Trade Policy: Cabinet approved a National Trade Negotiation Committee to review and amend existing free trade agreements and guide future negotiations. Exports Spotlight: NCE Export Awards returns for its 34th edition, with applications open until 30 Sept. Energy Planning Scrutiny: ECA challenged NSO’s interim power plan, warning it could raise consumer costs and conflict with renewable tariff assumptions.

Trade Policy Overhaul: Sri Lanka’s Cabinet has approved a National Trade Negotiation Committee to guide future trade talks and review existing Free Trade Agreements, aiming for a more targeted, sequential approach with stakeholder consultation. Water Security: El Niño-linked dry weather is hitting drinking water hard, with 115,000+ people affected across seven districts as reservoir levels fall and heat persists. Port & Logistics Push: The US has approved $15m to upgrade digital infrastructure at Colombo Port, while the 8th Colombo International Maritime and Logistics Conference (Sept 9-11) spotlights Colombo’s role as a transshipment and logistics hub. Maritime Security Watch: Washington has alerted Colombo over Iranian vessels operating nearby; Sri Lanka says it is monitoring 47 vessels. Labour Mobility: Thailand has approved a bilateral labour framework for up to 10,000 Sri Lankan workers, with regulated recruitment and work permits. Fisheries Enforcement: Court-ordered destruction of 200+ kg of dynamite-caught fish follows a Navy seizure, underlining pressure on marine resources. Industry Events: BAPA’s BAPA FoodPro Expo 2026 (Sept 10-12) will bring 200+ brands and food processing/packaging tech to Sri Lanka’s wider regional supply chain.

Drone Strategy: Sri Lanka is drafting a national plan to standardize, test and commercialize drone tech, covering manufacturing, safety and applications in agriculture, industry and environmental management, with testing labs and legal coordination across defence, civil aviation and telecom regulators. Japan Investor Support: The BOI held a working-level Sri Lanka–Japan Business Environment Committee meeting to tackle operational issues raised by Japanese investors across manufacturing, logistics, energy, infrastructure and environmental services, including a new working group on an export-oriented industrial corridor. Expo 2027 Push: Sri Lanka Expo 2027 is getting a visibility boost via a specially branded SriLankan Airlines Airbus A321neo, plus up to 20% discounted fares for foreign buyers and investors. Retail Leadership: SLRA and PIM inaugurated the second batch of the Retail Leadership Development Program, citing strong industry nominations. Apparel Automation Gap: Apparel makers are urged to catch up on automation and production technology as crisis-hit modernization leaves Sri Lanka less productive than regional rivals. Port City Tax Row: A deputy minister rejected claims of shifting tax terms at Port City after investor backlash over changing incentives for companies and employees. Coastal Crackdown: Authorities ordered removal of unauthorized coastal builds on Marine Drive between Bambalapitiya and Dehiwala by Sept 10, as part of a wider audit of over 2,500 illegal structures. Debt Pressure & Rights: A UN human rights report says Sri Lanka’s debt servicing is consuming most revenue, leaving limited space for social protection, while also flagging corruption-linked human rights concerns. Customs Revenue Watch: Customs reported strong 2026 collections, but warns vehicle imports may become a pressure point if taxation or demand shifts. Foreign Employment Governance: Sri Lanka’s foreign employment agencies face a credibility and coordination crisis as leadership disputes weaken collective representation for licensed agencies. Food Systems Context: Bhutan’s Global Conscious Food Systems Summit highlighted how values and governance shape food security—an angle relevant as Sri Lanka faces climate-driven food risks.

Coastal Enforcement: Sri Lanka will remove about 2,500 unauthorized coastal structures as part of a push to develop the coast as a tourist attraction, with demolition orders already issued for sites between Bambalapitiya and Dehiwela. Water Security: Reservoir capacity has fallen to 47.3% amid dry weather, with officials urging strict water saving for both Yala cultivation and drinking needs. Food Systems & Policy: Bhutan’s Global Conscious Food Systems Summit highlighted value-driven food-system transformation, with Sri Lanka’s PM attending and Sri Lanka also launching a National Food Safety Policy supported by FAO and the EU. Agri Value Addition: Damn Fine Coffee opened Sri Lanka’s first dedicated coffee dry mill for green bean sorting, aiming to improve consistency and traceability for specialty markets. Industry & Trade Links: Hayleys Agriculture launched a Grain and Food Processing Machinery business at ProFood/ProPack/AgBiz 2026, while Sri Lanka’s pineapples were introduced in Pakistan to kick off commercial trade. Consumer Protection: The Avissawella Magistrate ordered destruction of 8,500+ seized drinking water bottles over counterfeit SLS logo use and misleading branding.

Digital Economy & IT: FITIS launched the Digital Excellence Awards 2026 under “Embracing the AI Revolution,” with a push to standardise and certify services to meet global benchmarks and support a $15b digital economy goal. Food Safety & Exports: Control Union Sri Lanka hosted “Food Safety Forward” to strengthen Sri Lanka’s food safety systems and boost global market trust. Agri-Processing & Machinery: Hayleys Agriculture unveiled its Grain and Food Processing Machinery business at ProFood/ProPack/AgBiz 2026, targeting efficiency, hygiene and value addition. Coffee Value Chain: Damn Fine Coffee and Australia’s MDF opened Sri Lanka’s first dedicated coffee dry mill for green bean sorting, aiming for better uniformity and traceability for specialty markets. SME & Trade Growth: FCCISL and the Industry Ministry discussed a roadmap to incubate 1,000–5,000 scalable SMEs nationwide, aligned to the National SME Strategy Framework. Apparel Export Pressure: JAAF warned US buyers are shortening order commitments to about three months, shifting risk onto Sri Lankan factories and textile suppliers. Telecom for Digital Nation: Govt reaffirmed SLT-Mobitel as a strategic state asset, linking 5G expansion, digital identity rollout and connectivity to the digital economy agenda. Agriculture Export Risk: Export Development Board flagged El Niño-linked dry weather as a new threat to tea and other farm exports, while geopolitics and shipping disruptions add pressure. Trade Linkages: Sri Lankan pineapples were launched in Pakistan (Karachi), opening a new commercial chapter for Pak-Sri Lanka fruit trade. Industry Security: Pakistan, US and Sri Lanka agents jointly busted an Afghan-linked meth network, seizing 671kg across Karachi and Colombo ports.

Apparel Exports: US buyers are shortening Sri Lanka’s apparel order commitments to about three months, shifting risk onto factories and textile mills that rely on longer planning horizons. Agriculture Exports: El Niño-linked dry weather could further pressure tea, fruits and vegetables, while geopolitical and shipping disruptions already weigh on export earnings. Digital Economy: Government says it will not sell SLT-Mobitel, positioning the state telecom as key infrastructure for digital identity, broadband expansion and digital payments. Foreign Employment: UN urges Sri Lanka to keep anti-corruption momentum while also acting on rights abuses; meanwhile, industry leaders warn the foreign employment sector can’t stay stuck in ALFEA institutional disputes. Rural Value Addition: A national plan will create 250 “Ceylon King Coconut Villages” by 2028 to boost productivity and exports. Construction & Ports: Home Lands reports 60% piling progress for Central Park Boulevard Port City Colombo, aiming for faster delivery. Water & Climate Risk: Research flags worsening urban water quality and scarcity pressures for low-income Colombo communities as heat and drought intensify.

King Coconut Push: Sri Lanka will establish 250 “Ceylon King Coconut Villages” by 2028 (75 this year) to boost rural incomes and build an export-focused king coconut value chain, targeting a global market that could reach about $10b. Energy Security: Norochcholai’s coal shortage is forcing generation cuts, with analysts questioning why inventory wasn’t managed earlier as emergency shipments and unloading schedules come under pressure. Irrigation Acceleration: President Anura Kumara Dissanayake moved to fast-track the Lower Malwathu Oya reservoir project, restarting construction with Rs. 5b in the 2026 Budget and aiming for completion by 2029–2030. Digital Identity Rollout: Sri Lanka plans the phased launch of SL-UDI next quarter, starting with e-NICs for 16-year-olds and expanding over 2–3 years, with success tied to real daily use. Port & Trade Friction: The Benelux push for Sri Lankan exporters highlights how bureaucratic delays in clearances and investment rules can undermine access to European logistics gateways like Rotterdam. Water & Climate Stress: Urban water quality and drought-linked supply strains are hitting low-income Colombo communities, while El Niño has damaged thousands of acres and triggered crop compensation payments. Anti-Narcotics: Pakistan, US and Sri Lanka jointly busted an Afghan-linked meth network, seizing 671kg across Karachi and Colombo ports.

Lower Malwathu Oya Fast-Track: President Anura Kumara Dissanayake ordered obstacles to be cleared for the Lower Malwathu Oya Multi-Purpose Development Project, restarted with Rs. 5 billion in the 2026 Budget, aiming for completion by 2029–2030 to ease water shortages and support rural farming and livelihoods. Power Supply Pressure: Norochcholai’s coal shortage is forcing generation cuts (down to about 140 MW from around 270 MW), with analysts questioning why corrective action came late as shipments and unloading schedules face tight timing. El Niño Hits Agriculture: The Agricultural and Agrarian Insurance Board reports crop damage across roughly 8,000–8,500 acres, with about Rs. 3 billion set for compensation across districts and crops including paddy, maize, onions, potatoes, soybeans and chilli. King Coconut Villages Plan: Government moves to establish 250 “Ceylon King Coconut Villages” by 2028, starting with 75 in 2026, to build an export-oriented rural production ecosystem rather than treating it as just another crop. Digital Identity Rollout: Sri Lanka is set to issue its first production digital IDs next quarter under SL-UDI, with e-NICs for 16-year-olds and a phased expansion focused on real daily use. Port City Risk: Commentary flags how Colombo Port City’s special economic rules may “cannibalise” local business if incentives and tax architecture create a separate playing field. UNDP-Visa Inclusion: UNDP and Visa launch a pilot in Hope Estate, Hewaheta to boost financial literacy and access to formal and digital finance for women and youth in estate communities.

King Coconut Villages: Sri Lanka plans 250 “Ceylon King Coconut” villages by 2028, starting with 75 in 2026, 80 in 2027 and 95 in 2028, aiming to turn smallholder farming into an export-ready rural economy tied to global king coconut water demand. Energy Security: Norochcholai’s coal shortage is forcing generation cuts and exposes weak procurement planning—officials face tight unloading timelines and the risk of renewed power curtailments if shipments slip. El Niño Impact on Agriculture: El Niño-linked dry weather has damaged about 8,000–8,500 acres, with Rs. 3 billion set for crop insurance compensation across districts and payments scheduled through mid-September. Digital Identity Rollout: Sri Lanka is set to issue production digital IDs next quarter under SL-UDI, starting with e-NICs for 16-year-olds and expanding via pilots, with success measured by real daily use. Port City Debate: Colombo Port City’s high-autonomy rules and incentives are drawing scrutiny over whether it will create new activity or hollow out local business. Trade & Logistics Linkages: The Benelux region is being pitched as a European gateway for Sri Lankan exporters via Rotterdam, but bureaucratic delays and investment caps remain key barriers. Marine Skills for Exports: EDB and IESL ran a marine and offshore engineering capacity workshop to build the next export-focused workforce. Digital Payments Push: Commercial Bank of Ceylon expanded its Q+ merchant drive in Jaffna ahead of the Nallur Festival, activating 40+ merchants and canvassing 350+. Human Rights: A UN report urges stronger accountability and institutional reforms, criticising continued use of the Prevention of Terrorism Act and surveillance of civil society.

El Niño Farm Shift: Sri Lanka’s Department of Agriculture advised farmers to bring forward Maha paddy planting (land prep now; sowing Oct. 15–25) to reduce flood risk from above-average Oct–Nov rains, while preparing for a drier Jan–Mar 2027 period. Water & Drought Pressure: Separate reporting says El Niño is already drying wells and cutting rural incomes, with emergency water tankers struggling to reach remote communities. Power Security: Energy Minister Anura Karunathilaka said sufficient coal stocks are available, with new shipments expected to keep Norochcholai running without coal-related power cuts. Solar for Industry: Hayleys Solar completed a 3.3 MWp multi-site rooftop rollout for Toyota Lanka, targeting ~4.6 GWh clean power and lower CO₂. Maritime Trade Push: U.S. Federal Maritime Commission chair and commissioner visit Sri Lanka Sept 6–10 to deepen shipping and logistics cooperation, highlighting Colombo’s container flows. EU Export Pathway: Netherlands envoy backs using Benelux as a bridge for Sri Lankan exporters’ EU integration, while warning of bureaucratic hurdles and slow GI certification. Health Insurance Innovation: Ceylinco General launched a specialised Dengue & Chikungunya cover with home recovery plus hospital/ICU benefits. Trade & Logistics Context: U.S.-India BTA talks hinge on preferential tariff terms, shaping broader regional market access.

Digital Banking Upgrade: Commercial Bank of Ceylon showcased a global-first Open Digital Architecture deployment at TM Forum’s DTW Ignite 2026 with Axonect, aiming to modernise legacy systems while keeping governance and regulatory compliance tight. Financial Inclusion: UNDP and Visa launched a pilot in Hope Estate, Nuwara Eliya to boost financial literacy and access to formal digital finance for 50 estate women and youth, linking inclusion to livelihood activities. Energy & Skills: PUCSL says Sri Lanka needs about 5,000 qualified solar technicians annually to scale renewables, while Sri Lanka Engineering Council rules make NVQ Level 3/4 mandatory for refrigeration and air-conditioning technicians from 2028–2030. Transport Electrification: Transport minister Bimal Rathnayaka says electric rail electrification on three main corridors is targeted to start soon, with the first phase aimed for completion by 2030. Ports & Trade: Sri Lanka and India moved to finalise the Kankesanthurai Port MoU, including joint monitoring and technical oversight. Human Rights Watch: A UN OHCHR report urges Sri Lanka to deliver on reforms and curb PTA-linked arbitrary arrests and surveillance. Renewables/Industry: Lanka IOC marked its 25th year on the CSE with a market opening bell ceremony. Labour Mobility: SLFEA says school dropouts can apply for selected Japan jobs, including truck-driving, with required language skills. Tourism Push: World Bank-backed THRIVE Colombo plans to shift visitors from half-day stops to higher-value stays.