Interview with Krishan Balendra, Chairman and CEO, President of the Ceylon Chamber of Commerce

02 Oct Interview with Krishan Balendra, Chairman and CEO, President of the Ceylon Chamber of Commerce

Sri Lanka is emerging from a difficult economic period, with reforms beginning to restore stability and investor confidence. Opportunities are opening across tourism, logistics, agriculture and renewable energy, while local entrepreneurs continue to play a vital role in driving recovery. How do you evaluate the current investment climate in Sri Lanka?

Sri Lanka’s investment climate today is showing promising signs of recovery and resilience. After facing a series of economic and political challenges since 2019, Sri Lanka is now on a strong reform-driven path of recovery. Structural and policy reforms have helped restore business and consumer confidence and we’re seeing encouraging indicators 一 low inflation, stable interest rates, improved foreign exchange inflow and a relatively stable currency.

The International Monetary Fund highlighted the economy’s performance as remarkable and approved the fourth tranche of its support program in early July, reflecting continued international confidence. The combination of relative macroeconomic stability and improved political stability has laid a solid foundation for sustained business growth and broader economic expansion.

While some challenges remain, there is clear reform momentum that is essential, such as restructuring of state owned enterprises (SOEs), trade facilitation and digital transformation that can reposition Sri Lanka as an attractive investment destination.

Which sectors do you see as offering the strongest opportunities for entrepreneurs and international investors?

As the economy recovers, sectors such as tourism and transportation are demonstrating strong growth potential. Sri Lanka continues to remain an affordable destination and this affordability, combined with its diverse landscape, rich cultural heritage and unique offerings that appeal to a wide range of traveller demographics, further strengthens its attractiveness. In addition, the country’s strategic location presents significant opportunities to position Sri Lanka as a transportation and logistics hub, offering immense potential for businesses. Emerging sectors such as renewable energy, e-commerce and IT services are also expanding in line with the evolving economic and digital landscape, creating opportunities for both local and international businesses.

Founded in 1839, the Ceylon Chamber of Commerce is the country’s oldest and most influential business chamber. Today it is focused on strengthening competitiveness and advancing reforms that can deliver quick, visible impact. What are the chamber’s priorities for improving Sri Lanka’s business climate?

We leverage three strategic pillars: policy advocacy, stakeholder engagement and expanding market access, to drive consistent and structured dialogue with the government. Priority will be given to deepening policy advocacy, particularly in relation to structural reforms such as SOE restructuring, trade liberalisation and improving the overall investment climate, which are critical to strengthening resilience and building investor confidence. In parallel, accelerating digital transformation and enhancing export competitiveness will remain central, supported by initiatives such as the rollout of the digital ID system, implementation of the National Single Window (NSW) and modernisation of the customs ordinance.

These reforms represent immediate opportunities that can catalyse productivity, inclusion and trade efficiency. Further emphasis will also be placed on expanding market access for SMEs, advancing skills development and promoting climate-conscious growth, reinforcing our commitment to equitable and sustainable economic development.

Which reforms do you see as most urgent for restoring competitiveness and investor confidence?

Immediate priority must be given to low-hanging reforms 一 those widely agreed upon, technically feasible and capable of delivering quick wins. These include rolling out the digital ID system, implementing the NSW, modernising the customs ordinance and executing the National Tourism Destination Marketing Plan.

Equally, tackling corruption is critical. It erodes investor confidence, weakens institutions and harms SMEs and vulnerable groups. The chamber advocates for a transparent, rules-based environment by strengthening SOE governance, procurement and regulatory processes, while promoting digitisation and streamlined approvals to reduce discretion.

Beyond quick wins, structural reforms such as SOE restructuring, trade liberalisation and para-tariff reduction are essential. What matters most now is execution within measurable timelines. Restoring competitiveness and investor confidence requires a decisive shift from rhetoric to delivery.

Can you tell us about some recent initiatives to support the private sector as well as key partnerships and success stories?

SME resilience is a core priority, with over 400 SMEs already benefitting from our training programs. Building on this, we have launched a national SME competitiveness program that brings together financial institutions, export agencies, digital platforms and donor partners to create an integrated support ecosystem. This will offer tailored credit schemes, advisory services, digital onboarding and mentoring for product and market diversification.

We will also expand regional training and certification programs, particularly for women-led and youth-driven enterprises and connect SMEs to global buyers through our business councils and trade missions. At the policy level, we advocate for reforms such as factoring, digital ID-linked credit scoring and e-commerce regulations to lower barriers for SMEs to participate in formal and export markets.

The chamber also acts as a bridge to global markets, promoting trade and investment while ensuring Sri Lanka remains competitive within South Asia. How is the chamber working to attract more international investment into the country?

The chamber engages with investors through structured dialogues, policy submissions and international partnerships. Our role is to ensure Sri Lanka’s reform momentum is visible globally. At home, we continue to press for greater regulatory clarity, easier access to land and consistent policy implementation, all of which are essential to rebuild investor trust. We also partner with regional and global chambers to strengthen Sri Lanka’s integration into global value chains.

Our strategic location and proximity to India create a unique advantage. The chamber is actively involved in bilateral and multilateral trade discussions, while advocating for reforms that reduce friction, such as the NSW and customs modernization. By promoting trade facilitation and enhancing logistics infrastructure, the chamber is helping to position Sri Lanka as a more effective player in regional supply chains. Closer integration with South Asia, as well as East Asia and Europe, will be essential for sustainable, export-led growth.

John Keells Holdings (JKH) has become a trusted gateway for global capital entering Sri Lanka, accounting for one of the highest market capitalizations on the Colombo Stock Exchange and attracting both institutional and foreign investors to its diversified portfolio. Which sectors within the group are driving the strongest growth today?

The group’s growth momentum remains closely aligned with the broader economic recovery, with key sectors demonstrating strong performance. The leisure sector continues to benefit from the rebound in tourism across properties in both Sri Lanka and the Maldives. Consumer-facing businesses, including the supermarket and consumer foods segments, are experiencing growth supported by renewed consumer confidence. The ports and shipping business is also expanding, driven by favorable regional and global trade dynamics.

Sri Lanka’s proximity to India further enhances its strategic positioning, creating opportunities to capture value from India’s rapid economic growth, particularly in sectors such as tourism and ports and shipping. New ventures such as the new energy vehicle business are gaining traction, while the recently launched City of Dreams Sri Lanka is ramping up well, delivering encouraging month-on-month improvements. These developments reflect the Group’s diversified growth strategy and its ability to capitalize on both traditional and emerging opportunities.

In recent years, the Group has been investing in transformative, large-scale projects aimed at creating long-term value and accelerating its growth trajectory. The City of Dreams Sri Lanka is a flagship development within our leisure portfolio and is expected to be a major catalyst for growth. With outbound travel from India on the rise, this integrated resort is well-positioned to capture that demand and elevate Sri Lanka’s appeal as a premium destination.

Leveraging on Sri Lanka’s strategic location, the country has the potential to be a regional transshipment hub. The recent commencement of operations at the first phase of the Colombo West Container Terminal is a significant step in that direction, adding much needed capacity to the Port of Colombo.

The Group’s new venture in the new energy vehicle business has gained strong traction and is expected to be an important growth driver. Meanwhile, other sectors such as consumer foods, supermarkets and property continue to assess emerging opportunities and remain focused on capturing them to sustain growth momentum.

Designed as an integrated resort and mixed-use development, City of Dreams is expected to reshape Colombo’s skyline and tourism profile. What impact do you expect City of Dreams Sri Lanka to have on foreign exchange earnings, job creation and Colombo’s global profile and what will come next?

City of Dreams Sri Lanka is the largest private investment in the country and South Asia’s first fully integrated luxury resort, with an investment of approximately $1.2 billion. This landmark development is set to redefine Colombo’s positioning as a regional hub for tourism, leisure and entertainment, while acting as a transformative catalyst for tourism demand, foreign exchange earnings and employment generation. The integrated resort is expected to deliver substantial economic benefits beyond tourism receipts, including direct and indirect job creation, enhancement of Sri Lanka’s culinary and service standards and support for the growth of SMEs.

Currently employing over 1,400 people, City of Dreams Sri Lanka is expected to create more than 20,000 direct and indirect job opportunities. Drawing on the success of similar integrated resorts in the region, the project is envisioned to play a pivotal role in elevating leisure and entertainment in South Asia, while contributing significantly to the country’s broader economic development. The casino, the ultra-luxury Nuwa hotel and the premium shopping mall, branded as The Shoppes, at City of Dreams Sri Lanka were recently launched. With all components of the integrated resort now operational, the group expects to realize the benefits of the development in the coming quarters.

Another significant investment by the group is the Colombo West Container Terminal, a public-private partnership with Adani Ports and Special Economic Zone Limited. WCT-1, the Port of Colombo’s first automated deep-water terminal and a milestone project for the group, commenced its first phase of commercial operations in Q4 2024/25. The second phase is currently underway and is expected to be completed by end-2026, ahead of schedule. With regional container volumes and demand anticipated to rise, the terminal is well positioned to capture this growth and significantly strengthen the Port of Colombo’s role in regional trade. As operations scale up quarter-on-quarter, WCT-1 is expected to contribute meaningfully to the group’s growth trajectory and reinforce Sri Lanka’s competitiveness as a transshipment hub.

Sustainability and digitalization are central to JKH’s strategy, from Plasticcycle and reforestation projects to digital platforms such as the Nexus ecosystem. These initiatives strengthen efficiency, inclusion and long-term growth.

Which sustainability initiatives best highlight JKH’s leadership in responsible growth?

The group’s strategy integrates sustainability across all operations, with a strong focus on material priorities. Environmental commitments include energy management, emissions reduction, water stewardship, responsible waste and packaging and biodiversity conservation. Flagship initiatives such as Plasticcycle, which was recently featured by the World Economic Forum, have grown into a nationwide platform for plastic recovery and recycling through innovation, collaboration and community engagement. Also, our Cinnamon Rainforest Restoration Project is regenerating critical ecosystems.

On the social front, priorities include diversity and equal opportunity, workplace health and safety, community empowerment and stakeholder engagement. These are supported by investments in employee development, product stewardship and embedding sustainability best practices across the value chain. JKF, which marked 20 years in 2025, continues to lead community initiatives under the theme Empower the Nation for Tomorrow through initiatives in education, livelihood, health and cohesion and the environment. This includes two decades of English education programs for children and youth and over 10 years addressing gender-based violence.

In parallel, our ONE JKH initiative has become a corporate benchmark in diversity, equity and inclusion. Together, these initiatives reflect our belief that sustainable growth must be both environmentally responsible and socially inclusive.

How is technology reshaping efficiency and competitiveness across the group?

Technology is central to the group’s ability to stay ahead and drive innovation. OCTAVE, our data and advanced analytics centre of excellence, enabling data-driven decision-making across businesses, enhancing customer insights and supporting competitive advantage. In logistics and port operations digital adoption is supporting a more inclusive workplace allowing us to broaden our talent pools. The group has also conducted a comprehensive assessment of financial processes to identify opportunities for optimisation and simplification of transactional reporting. By leveraging technology, including AI platforms, we aim to enhance the strategic value of financial insights and drive broader financial and business transformation.

What is your vision for the future of the company in the next 3-5 years?

Our vision is to continue to maintain JFK as Sri Lanka’s most trusted and regionally competitive conglomerate. For over 20 years, JKF has been recognized as the country’s most respected entity and we are committed to ensuring that the trust of the public remains with us through the highest standards of governance and integrity.

Looking ahead, sustainability and community engagement along with business excellence will remain central to our strategy, while innovation and technology will be embedded across businesses. In the next 3–5 years, we see JKF not only continuing  as a Sri Lankan leader, but also as a regional benchmark for resilience, responsibility and forward-looking growth.