By: John S. Morlu II, CPA
In the beginning, Sri Lanka sold spices, gems, and kingship charm to passing merchants. Then came the colonialists — they extracted tea, rubber, and cinnamon, and left behind bureaucracy, broken systems, and cricket. Today, Sri Lanka stands at a very different crossroads.
This isn’t just a tropical paradise anymore. It’s a business case study, a startup island with centuries of heritage, and a country dancing between tradition and reinvention.
If you’re paying attention — Sri Lanka isn’t just recovering. It’s pivoting.
Tea Leaves: The Legacy Economy Still Brewing
You can’t talk about Sri Lanka without starting with tea. Ceylon tea isn’t just a product — it’s a national identity.
- Over 1 million people work in the tea industry.
- Tea exports generate billions in revenue.
- The Hill Country estates are postcard-perfect, yes — but they’re also ground zero for labor rights debates, climate change impact, and generational migration.
Sri Lanka is now digitizing tea auctions, branding artisan teas, and exploring direct-to-consumer models via e-commerce. Think Shopify meets Darjeeling.
Still, while the tea leaf remains iconic — it’s not enough. The world wants more than a cup of comfort. Sri Lanka knows it has to expand — and fast.
Tourism: Paradise with a Pitch Deck
Before COVID and the economic meltdown, tourism accounted for over 12% of GDP. After a tsunami, a war, a bombing, a pandemic, and a fuel crisis — tourists still come.
Why? Because Sri Lanka sells something rare: authenticity.
- Wildlife that isn’t staged.
- Temples that still matter.
- Ayurveda that doesn’t feel like a rebranded spa.
- Locals who talk to you without needing a TripAdvisor review.
Now, with digital nomads, backpackers, and soul-searchers returning, Sri Lanka is crafting a new pitch: cultural tourism, remote work hubs, wellness retreats, eco-lodges, and culinary tours.
Hint: if you launch a coworking space in Ella with fast WiFi and coconut smoothies — you’ll be mayor in a week.
Brains Over Brawn: Education, Innovation & Brain Drain
The literacy rate in Sri Lanka is over 92% — among the highest in South Asia. It has a strong public education system, brilliant coders, skilled accountants, and engineers who can fix anything using a phone charger, a pen, and a mango.
So why do so many leave? Because opportunity doesn’t always match talent. Brain drain has drained more than just doctors and software developers — it’s drained hope.
But here’s the twist: many are coming back. Some with degrees, others with crypto wallets. And they’re investing in:
- Agri-tech: Using drones and data to grow better cinnamon.
- Fintech: Disrupting banking in a country where most people don’t trust banks.
- AI & Analytics: Helping SMEs compete beyond borders.
- E-commerce: Turning local crafts into global brands.
One Colombo startup recently built an app that tracks power cuts better than the government itself. That’s innovation born from pain.
Enter Blockchain, Baby
Yes, you read that right. Sri Lanka — the land of palm trees and papaya — is also flirting with blockchain.
Not just for crypto speculation (though there’s plenty of that). We’re talking:
- Supply chain transparency in tea and apparel.
- Blockchain-based land registries to fight corruption.
- Decentralized finance (DeFi) tools to bypass broken legacy systems.
When your formal institutions wobble, people don’t wait. They build new ones.
And blockchain, for many Sri Lankans, feels like the antidote to political volatility and bureaucratic lethargy.
Of course, this isn’t mass adoption — yet. But the seeds are there. Planted between broken systems, and watered by a generation tired of waiting.
Sri Lanka’s Business Superpower: Strategic Geography
Remember in Part 1 when we said Sri Lanka is geography’s gift?
That’s paying off in real time. With global shipping routes shifting, China’s Belt and Road still creeping, and India flexing its regional muscles — Sri Lanka has quietly positioned itself as:
- A logistics hub for South Asia.
- A regional headquarters for multinationals.
- A gateway to Africa, the Gulf, and ASEAN.
The Colombo Port City project (controversial as it may be) is part of this vision — an international financial center where suits and sarongs might finally merge.
Sustainability: The New Bottom Line
Sri Lanka was green before it was cool.
- Organic farming is in its DNA.
- Coconut husks are used as everything from ropes to currency (unofficially).
- Ayurveda and plant-based diets have been around for 2,000+ years.
But there’s friction: How do you balance growth with green?
The government’s 2021 plan to go fully organic (overnight) backfired catastrophically. Crops failed. Protests erupted. A global lesson in: “maybe test first?”
Now, a more measured approach is emerging — tech-enabled sustainability, climate-smart agriculture, and solar-powered microgrids in rural villages.
Sri Lanka is learning. And pivoting is the new national skill.
Final Thought: Build, Don’t Just Buy
Tourists buy Sri Lanka. Investors fund Sri Lanka. But the real opportunity? To build with Sri Lanka.
This is a country where:
- The tea is sacred.
- The youth are brilliant.
- The systems are flawed.
- The resilience is unmatched.
It’s not perfect — but it’s ripe for reinvention. And if you’re bold enough, curious enough, and patient enough — you can be part of it.
So whether you’re sipping tea in Nuwara Eliya, pitching to a VC in Colombo, or launching your next AI startup in Jaffna — remember:
You’re not just visiting paradise. You’re partnering with its future.
Coming Soon: My Sri Lanka – Part 5
“Faith, Folklore, and the Spiritual Software of a Nation”
About the Author
John is an entrepreneur, strategist, and founder of JS Morlu, LLC, a Virginia based CPA firm with multiple software ventures including www.FinovatePro.com, www.Recksoft.com and www.Fixaars.com . With operations spanning multiple countries, John is on a mission to build global infrastructure that empowers small businesses, entrepreneurs, and professionals to thrive in an increasingly competitive world. He believes in hard truths, smart execution, and the relentless pursuit of excellence. When he’s not writing or building, he’s challenging someone to a productivity contest—or inventing software that automates it.
