Thursday Jul 23, 2026
Thursday Jul 23, 2026
Thursday, 23 July 2026 00:20 - - {{hitsCtrl.values.hits}}
Stronger corporate governance across Sri Lankan companies can help rebuild the country’s credibility with global investors, speakers told the Sri Lanka Institute of Directors (SLID) Corporate Director Summit yesterday, arguing that boardroom standards have become a determinant of national investment competitiveness as much as corporate
performance.
Opening the Summit under the theme ‘Future-Ready Sri Lankan Directors: From Compliance to Sustainable Growth,’ speakers said future boards would be judged less by compliance with governance codes than by their ability to respond quickly to disruption, challenge management, and earn the confidence of long-term investors.
Minor International Group CEO Dillip Rajakarier said every company that strengthens governance standards contributes to rebuilding Sri Lanka’s investment case, arguing that boardroom quality has become a competitive advantage rather than merely a compliance requirement.
“Every board in this room that raises its governance standards is not just protecting your own shareholders, but you are collectively rebuilding Sri Lanka’s investment case,” he said.
Rajakarier said investors now look beyond whether companies have governance codes and instead assess how boards perform when organisations face crises. They examine whether independent directors exercise genuine oversight, whether risk committees have the authority to challenge management, and whether board discussions encourage constructive debate rather than reinforce consensus.
He argued that boards must develop an adaptive capability that allows organisations to respond quickly to strategic shocks, saying speed has become a governance issue rather than solely a management responsibility. Drawing on Minor International’s acquisition of NH Hotels and its response during the COVID-19 pandemic, he said board structures should enable timely decisions while preserving rigour.
Echoing the investor perspective, LYNEAR Wealth Management Co-Founder and Managing Director Dr. Naveen Gunawardane said institutional investors first assess whether a company is investable before considering valuation.
He said investors scrutinise the composition of boards, directors’ industry expertise, their commitment of time and, above all, whether independent directors genuinely protect minority shareholder interests.
Dr. Gunawardane questioned the practice of directors serving on numerous boards, warning that excessive appointments could undermine effectiveness and raise doubts about directors’ ability to devote sufficient attention to each company. He also argued that independence should be judged by conduct rather than designation, particularly where boards oversee dominant shareholders and related-party transactions.
While acknowledging the importance of board diversity, Dr. Gunawardane said institutional investors ultimately place greater emphasis on competence, commitment, and genuine independence than on meeting numerical diversity targets.
Extending the discussion beyond shareholder oversight, Safesea Group Founder and Chairman Dr. S.V. Anchan said boards must incorporate geopolitical developments, technological disruption, and organisational resilience into their governance frameworks.
Drawing on the global shipping industry, he said geopolitical tensions can disrupt trade, supply chains, and financing long before their economic consequences appear in conventional data, making geopolitical risk a boardroom responsibility rather than an external concern.
Dr. Anchan said governance should facilitate timely decision-making instead of delaying action through excessive procedures and committee structures. While artificial intelligence (AI) can strengthen forecasting and operational efficiency, he said technology cannot replace human judgement, accountability, and leadership in times of crisis.
He added that future-ready boards should invest equally in people and technology while building resilient operating models capable of responding rapidly to unexpected disruptions.
Former Maldives President Mohamed Nasheed said sustainability has become a governance and business imperative rather than a corporate responsibility exercise, arguing that investors increasingly allocate capital to companies that manage environmental and social risks effectively.
“Sustainability improves long-term profitability, reduces business risk, and strengthens resilience,” he said, adding that it also helps companies attract investment, talent, and customer confidence.
For Sri Lanka, Nasheed said embedding sustainability into business strategy presents an opportunity to build globally competitive enterprises capable of attracting responsible investment while supporting long-term economic prosperity.
Opening the summit, SLID Summit 2026 Chair Charaka Perera said directors must adapt to AI, geopolitical uncertainty, climate change, and changing stakeholder expectations, while SLID Summit 2026 Technical Chair Sutheash Balasubramaniam said the discussions would be distilled into a boardroom insights handbook to help directors navigate emerging governance challenges.
Joining a subsequent panel discussion moderated by Janashakthi Group (JXG) CEO Ramesh Schaffter, Turkish Ambassador to Sri Lanka Dr. Semih Lütfü Turgut said boards must prepare for an increasingly unpredictable global environment where geopolitical developments, technological disruption, climate change, and shifting political realities can rapidly reshape business conditions.
He said directors need a global outlook, strategic foresight, and the ability to interpret geopolitical developments and their implications for business, while remaining committed to ethical governance, sustainability, and long-term value creation.
Dr. Turgut added that these principles apply equally to corporate boards, public institutions, and policymakers as organisations navigate an era of heightened uncertainty.
