Big businesses must reform now

SRI Lanka is entering a new chapter. The country is trying to recover from one of the most severe economic crises in its modern history. The new Government has begun important reforms to stabilise the economy, strengthen public institutions, and improve transparency. These steps matter. But they are not enough on their own. The private sector also needs to change and help mend the broken nation if the country is to move forward.

- By Charith Gunawardena

The Ceylon Chamber of Commerce

For many years, significant segments of the private sector have prioritised short-term profit at the expense of broader national interests. Some firms failed to invest adequately in their workers, while others neglected essential environmental responsibilities. Many continued to profit from nonessential imports even as the country faced a severe external debt crisis.

Price gauging was rampant, and a number of economists including Isabella Weber (Author: Sellers inflation, profits and conflict) and political leaders at multilateral institutions have accepted that corporate profits are a primary driver for inflation today. Sri Lankan businesses need a fundamental change to move away from short-term profit maximisation for the longer term benefit of people and the economy.

The pressure to maximise profits has compromised the conduct of many actors in the private sector. Several businesses have engaged in bribery, lobbying, and undue influence over public institutions for corporate or personal gain. More than half of the wealth accumulated by Sri Lanka's private sector has been generated through transactions with the Government —often through supernormal profits gained by purchasing public assets below market value or selling goods and services to the state at prices above market rates (Murtaza Jafferjee, Advocata Institute, 2025).

Moreover, certain exporters have engaged in illicit financial flows, robbing the nation of vital foreign exchange (Global Financial Integrity, 2024). Others have embarked on import/reexport scams that destroy local production.