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Sunday October 11th, 2026

Ending teacher-centric learning in South Asia’s schools

ECONOMYNEXT – In an era where technological advances make access to knowledge easy, current classroom settings and teacher-centric learning are failing to equip youth with the soft skills required in the workplace. This is especially so in South Asian nations where education systems continue to impart knowledge solely through textbooks and rote learning.

What we have today is a ‘factory education system’ hemmed in within a ‘bell, break and test’ says Heminda Jayaweera, Serial Innovator and Entrepreneur.

Jayaweera was sharing his thoughts during a webinar on the ‘Gap between Schools and Practical Education’ organised by the Friedrich Naumann Foundation for Freedom, South Asia in collaboration with the Centre for Civil Society, on December 7th. Joining him on the panel were Aakriti Parashar, an aspiring Public Policy enthusiast and writer from India, Susil Premjayantha, Sri Lanka’s Minister of Education and Suresh Gautam, Head, Department of Development Education, Kathmandu University, Nepal.  The session was moderated by Roshan Gandhi, CEO of City Montessori School, India.

Workplaces require critical thinkers capable of solving complex problems and working collaboratively, Jayaweera says, adding that the Maria Montessori method should be taken to the ‘next level.’  Entrepreneurs, he says must have a broad knowledge and skill set, rather than a single focus with boundaries which limit their field of study.  Gone are the days when copying was considered a crime, ‘today it is known as collaboration,’ states Jayaweera, explaining that Japan copied technological development from the United Kingdom, and South Korea from Japan.

The future will be about collaborative skills and for that, it is important to ‘interconnect the creative with the sciences’ he says, explaining that a musician or artist for instance could be taught some coding, which would expand their knowledge and abilities.

When youth lack soft skills, it takes 6 to 7 months to adjust to their work environment, he adds.

Suresh Gautam agrees and points out that a change in mindset at all levels is required to move teaching from a classroom-centred one to a system that includes field trips, projects and internships. It is time to discern whether education systems are producing ‘puppets or humans’ he says. There have been some initiatives, and the ministry of labour is working on developing apprenticeships, yet more needs to be done. Science and math teach reasoning, but not life skills.

Training must be planned keeping in mind what skills are being imparted and to whom, Gautam states, adding that Nepal has around 380 short-term training courses, yet there is youth unemployment. The issue is that training is not locality-specific or ones that lead to income-generating employment. Landlocked Nepal which engages mostly in agriculture is experiencing migration from rural areas leaving farmlands abandoned. A once thriving fishing industry is dead, leading to imports from India. Most youth headed to Qatar to build the FIFA Stadium, he says.

Following his participation at the UNESCO Education Summit in Paris, Minister Susil Premajayantha is working on transforming instead of reforming education policies. Plans are afoot to introduce a pilot project in 2023 where technical and vocational training will run parallel to general education. The new module will be introduced to Grade 1 students, who will also be exposed to practical English. Training of Trainers has begun and in the first three months of 2023 13,000 Grade 1 teachers will also be trained.  IT education which was previously an optional subject in the Ordinary Level curriculum has now been included as a core subject.

The Minister adds that depending on the locality they live in, students will be exposed to the intricacies of the tea, rubber or gem industry for instance, with the hope that they would be motivated to pick careers in those sectors.

Under the new scheme, at Grade 9, students will have the option of deciding between continuing on to higher studies or taking up vocational training.

He is also in consultation with the Ocean University of Sri Lanka and other professional bodies to prepare course content in keeping with job market trends.   Academics both in Sri Lanka and overseas too are collaborating with the Ministry to bring university courses on par with those of developed countries.

While most parliamentarians are on board, he states that administrative reforms are critical for the successful implementation of the changes envisaged. As well, a change of mindset amongst educators, parents and the public is essential.

Aakriti Parashar describes herself as one who was solely focussed on academics, only to realise that textbook-centred learning under-equipped her for the skills desired in the job market.  Teaching methods at school and university were the same, she says, adding that both lacked training in life skills. She overcame that handicap by involving herself in extra-curricular activities.

Though she concentrated on Science and computer education at school, Parashar found that when seeking a career, she was better suited for one connected to the Arts.

Explaining that at one stage entrepreneurship had been introduced into the curriculum of government schools in Delhi, she adds that it could be taught to students of Grade 11 and also at the undergraduate level.

Keynote speaker Kathrin Junken, CEO of the Nepal Secretariat of Skills and Training (NSST) states that German youth have the option for vocational training and over 350 courses to choose from. Fifty-five per cent of school leavers take up vocational training, which is between two and a half to three and a half years long. Twenty per cent of companies provide training to the youth, who spend 70 per cent of the time with a trainer on site, and only 30 per cent at a vocational training school.  Youth are paid while in training, and the programmes contribute to the economic growth of participating companies.

In Nepal, NSST conducts job orientation and prepares youth for apprenticeships in Germany. That programme, she explains is fully funded by Nepali businesses.

Sri Lanka Central Bank stubbornly defends 5% inflation target

ECONOMYNEXT – Sri Lanka Central Bank stubbornly defended the 5% inflation target it recommended and signed with the government for the next three years citing that it was the only “optimal solution” and rubbished claims that the target is high and erodes the purchasing power of the general public.

Economists and monetary policy critics have strongly advocated that the Central Bank lower its official inflation target from 5% to 2%, emphasizing that a lower target is essential to break the country’s historical cycle of currency instability.

Proponents of the 2% target argue that a 5% baseline implicitly embeds a continuous, compounding erosion of domestic purchasing power, increasing price levels by over 15% across a three-year window.

In a country recovering from hyperinflation, critics contend that a targeted 5% annual inflation creates an environment where nominal prices and living costs permanently outpace real wage growth, continually straining lower- and middle-income households.

However, the Central Bank recommended to the government and signed a three-year agreement to maintain the 5% inflation target for the three years through October 2029.

Central Bank Governor Nandalal Weerasinghe explained at a panel discussion with his junior officers that countries choose inflation targets depending on their growth potential and ability to grow.

“So, this is where one can argue, why 2% inflation, is it better? Looking at the purchase power, it looks better, but it’s not better,” he told the gathering in response to a question.

“It is worse, because it will create a country that can grow, much lower below its potential…. It’s not welfare optimization. It will make a lot of people worse off than it will make a lot of people better off.”

A primary structural argument for adopting a 2% inflation target centers on external stability and protecting the Sri Lankan rupee.

When Sri Lanka maintains a 5% inflation target while its key international trading partners such as the United States, Eurozone, and major Asian economies  aim for 2%, a structural inflation differential of around 3% is built directly into the economy.

According to economic theory and historical precedent, this persistent inflation gap exerts steady downward pressure on the domestic currency, forcing nominal exchange rate depreciation.

Advocates argue that lowering the target to 2% would align Sri Lanka with global standards, anchor long-term exchange rate expectations, and prevent recurring balance-of-payments vulnerabilities.

Only 5%

However, Weerasinghe said the 5% target has the “right balance” and the Central Bank had conducted extensive research before arriving at the decision.

“I think, we don’t see any other counterfactual to say, it’s not 5%, it’s 4%, or 2%, or 3%, or 6%, or 7%,” he said.

“A lower inflation target can make the solution worse than what we think…. It won’t be better because everyone can be benefited out of higher growth.”

“If you are coming to a solution, where inflation can drag down the growth below potential, that won’t be the optimal solution.”

“We are all convinced and that’s why we have made the recommendation, government also agreed.”

He said the central bank will reassess and come up with the right level that could be lower in the future and that decision will be data-driven and evidence-based.

Analysts have stressed that a 2% inflation target is critical for lowering long-term interest rates and encouraging capital investment.

Under a 5% target, which carries an allowed accountability band of 2 percentage points, permitting inflation to fluctuate between 3% and 7%, lenders and foreign bondholders demand a higher inflation risk premium to compensate for potential price volatility.

This inflates domestic borrowing costs for both private enterprises and the government. By committing to a tighter 2% anchor, the central bank would provide greater policy credibility, reduce nominal interest rates across the yield curve, and foster a far more predictable environment for long-term private sector investment and debt sustainability.

The data showed, the Central Bank missed the inflation targets for most quarters in the three-year period through end September 2026.

The Bank has blamed lower energy prices for disinflation and missing the target below the lower band of 3% and higher energy prices for breaching the target above upper limit of 7%. (Colombo/October 09/2026)

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Sri Lanka rupee closes at 330.85/95 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.85/95 to the US dollar in the spot market on Friday, from 330.95/331.00 the previous day, while bond yields closed slightly higher, dealers said.

A bond maturing on 01.08.2030 closed at 11.30/35 percent, up from 11.25/35 percent.

A bond maturing on 15.10.2030 closed at 11.37/40 percent, up from 11.30/40 percent.

A bond maturing on 01.02.2031 closed at 11.42/47 percent, up from 11.35/45 percent.

A bond maturing on 15.12.2032 closed at 11.75/85 percent, up from 11.75/80 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, from 12.05/15 percent. (Colombo/Oct9/2026)

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Sri Lanka stocks close up, ASPI gains 0.41-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.41 percent.

The ASPI was up 82.57 points at 20,316.91, while the more liquid S&P SL20 was up 0.45 percent, or 26.19 points, at 5,788.75.

The ASPI ended the week down 496 points from last Friday, amidst a mixed week of trading.

Positive contributors to the ASPI were Dialog Axiata (up 0.91 percent at 44.50 rupees), Hatton National Bank (up 0.93 percent at 379.00 rupees), Commercial Bank of Ceylon (up 0.38 percent at 200.00 rupees), Richard Pieris and Company (up 4.30 percent at 26.70 rupees), and Laugfs Gas (up 7.35 percent at 40.90 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), LOLC Holdings (down 1.25 percent at 415.25 rupees), Haycarb (down 1.37 percent at 198.50 rupees), and Industrial Asphalts (Ceylon) (down 16.67 percent at 0.50 rupees) were top negative contributors.

Market turnover was 1.05 billion rupees. Diversified financials led turnover with 233.69 million rupees, followed by capital goods with 200.09 million rupees.

During the session, crossings in Lanka Milk Foods (LMF) in the first half of the trading day drew market interest, Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said.

“Usually 20,000 is also a psychological limit,” Wickremeratne said. “When it comes back closer to that, people also might feel like it’s worth buying, so that’s why sometimes coming close to that you might have a bit of a move.” (Colombo/Oct09/2026)

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Sri Lanka Customs’ September revenue exceeds target by 32-pct

ECONOMYNEXT – Sri Lanka Customs exceeded its September target by 32.1 percent, while the revenue in the first nine months of 2026 jumped around 22 percent compared to the same period last year, official data showed.

Customs’ September revenue target was set at 195.6 billion rupees. However, the revenue-collecting body collected 258.3 billion rupees that month, exceeding the target by nearly a third, according to official data.

It also exceeded the cumulative target for the first nine months by 29.2%, achieving 2,117 billion rupees.

Last year, Customs collected a record 2,551 billion rupees in revenue, exceeding a revised target of 2,241 billion rupees for the year and achieving 64.2% higher revenue than the previous year’s revenue of 1,553 million rupees.

Customs has set a revenue target of 2,207 billion rupees for this year, 13.5% less than last year as it expects a significant decline in car imports. Data showed it achieved 95.9% of this year’s target in the first nine months.

Analysts expect the revenue collecting body to achieve its 2026 full year target by mid-October,

Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction.

Following the 2022 economic crisis, imports fell sharply as the country imposed restrictions to conserve foreign exchange.

However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen.

Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue.

The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/October 09/2026)

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IESL, Dialog open Sri Lanka entrepreneurs challenge

ECONOMYNEXT – The Institution of Engineers, Sri Lanka (IESL) and Dialog Axiata have launched the IESL National Startup Challenge, for aspiring entrepreneurs to transform innovative ideas into commercially viable, investment-ready startups.

The competition invites Engineering undergraduates, practitioners and participants in an Open Category for Non-Engineers to submit ideas across 12 innovation verticals.

“The IESL National Startup Challenge is designed to turn innovative ideas into viable businesses by connecting aspiring entrepreneurs with industry expertise, mentorship and continuous practical support,” Eng Jasmine Nanayakkara, Chairperson of the Entrepreneurship Forum at the Institution of Engineers, Sri Lanka, said.

“By encouraging our engineers and aspiring founders to create, commercialise and scale solutions, we aim to contribute to new ventures, new opportunities and meaningful job creation for Sri Lanka’s skilled and educated next generation.”

Participants will progress through idea development, pitching, incubation, prototyping, validation, minimum viable product development and business scaling, supported by industry experts, mentors and ecosystem partners.

The programme will culminate in a Top 10 selection, with the first-place winner receiving an award of 1 million rupees.

Each of the Top 10 teams will receive a Dialog Digital Startup Support Package valued at 250,000 rupees, comprising selected Dialog digital products and services.

Dialog is providing technical expertise, mentors and digital resources to help participating teams develop, validate and scale their solutions.

“Dialog is extending its digital capabilities, mentorship and ecosystem support to help promising teams progress from concept to validation and investment readiness,” Dialog Axiata said.

The National Startup Challenge also brings together a network of partners, including The Ceylon Chamber of Commerce as Ecosystem and Mentoring Partner, Helago as Official Mobility Partner, Helakuru as Official Digital News Partner, and Real Life as Official Climate Action Partner.

Applications are now open via www.iesl.lk/announcements, giving aspiring entrepreneurs an opportunity to access the resources and funding they need to succeed. Applications close on 16th November 2026. For more information, contact mgr.pub@iesl.lk / 071 109 4393. (Colombo/Oct9/2026)

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Sri Lanka stocks trend higher, ASPI up 0.86-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.86 percent.

The ASPI was up 174.62 points at 20,408.96, while the more liquid S&P SL20 was up 0.86 percent, or 49.77 points, at 5,812.33.

Positive contributors to the ASPI were Commercial Bank (up 0.88 percent at 201.00 rupees), Dialog Axiata (up 1.59 percent at 44.80 rupees), Distilleries Company of Sri Lanka (up 1.76 percent at 52.00 rupees), and Hatton National Bank (up 1.20 percent at 380.00 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), Haycarb (down 0.75 percent at 199.75 rupees), Malwatte Valley Plantations (down 1.79 percent at 55.00 rupees), and Odel (down 4.04 percent at 9.50 rupees) were top negative contributors.

Market turnover was 343.62 million rupees. Capital goods led turnover with 77.51 million rupees.

E.B. Creasy & Company PLC announced that it has executed a corporate guarantee of 50 million rupees with effect from September 30, 2026, on behalf of its subsidiary, E. B. Creasy Logistics Ltd, guaranteeing banking facilities obtained by the company. The company stated that the delay in making the disclosure was due to a delay in receiving official notification from the bank on the execution of the guarantee. (Colombo/Oct09/2026)

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