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How the Global Sports Economy Works — Lessons from the World and India, and What Sri Lanka Can Do Next

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Sport has evolved far beyond competition and entertainment. Across the world, it has become a multi-billion-dollar economic engine, generating employment, infrastructure development, tourism, media revenue, and sustainable athlete livelihoods. From Europe to Asia, nations that have invested strategically in sport now reap economic and social dividends. Sri Lanka, standing at a critical crossroads, has much to learn from these models.

The Global Sports Economy: More Than Just Matches

Globally, the sports industry is valued at over USD 500 billion, encompassing professional leagues, broadcasting rights, sponsorships, sports tourism, infrastructure, merchandise, sports science, and digital platforms.

Countries such as the United States, United Kingdom, China, and Australia treat sport as an industry rather than a recreational activity. Their success rests on four pillars:

  1. Professional leagues and structured competitions
  2. Strong private-sector partnerships
  3. Athlete-centric commercial ecosystems
  4. Policy support and long-term planning

Athletes in these systems benefit not only from prize money but also from contracts, endorsements, pensions, insurance, post-retirement opportunities, and education pathways, ensuring sport is a viable career rather than a short-term pursuit.

India’s Sports Economy: A Regional Case Study

India’s transformation over the past decade provides one of the most relevant case studies for Sri Lanka. Once heavily reliant on cricket alone, India has built a diversified sports economy through structured leagues and government–private collaboration.

The introduction of the Indian Premier League (IPL) revolutionised cricket economics, creating billions in revenue while supporting players, coaches, analysts, broadcasters, marketers, and venue operators. This model was replicated across other sports through leagues such as:

  • Indian Super League (Football)
  • Pro Kabaddi League
  • Premier Badminton League
  • Ultimate Kho Kho
  • Women’s Premier League (Cricket)

These leagues did more than entertain. They created year-round employment, improved grassroots scouting, professionalised coaching, and gave young athletes financial security and visibility.

Government initiatives like Khelo India and the Target Olympic Podium Scheme (TOPS) complemented league structures by funding athlete training, sports science, nutrition, and international exposure. Importantly, athletes were treated as economic contributors, not beneficiaries of charity.

How Athletes Benefit in a Sports Economy

In mature sports economies, athletes benefit through:

  • Central contracts and league salaries
  • Sponsorship and brand endorsements
  • Medical insurance and injury cover
  • Access to sports science, analytics, and psychology
  • Education and dual-career support
  • Post-retirement roles in coaching, media, administration, and entrepreneurship

Sport becomes a sustainable profession, reducing dropout rates and improving performance standards.

Where Sri Lanka Stands Today

Sri Lanka possesses immense sporting talent across cricket, football, athletics, rugby, volleyball, combat sports, and school sports. However, the sports ecosystem remains fragmented, with limited commercial pathways for athletes outside elite cricket.

Key challenges include:

  • Lack of structured domestic leagues
  • Weak private-sector investment
  • Overdependence on government funding
  • Inadequate athlete welfare systems
  • Underutilisation of sports infrastructure
  • Limited sports tourism and event hosting

Most athletes face uncertainty beyond school or national-level participation, leading many to abandon sport prematurely.

What Sri Lanka Can Do to Build a Sports Economy

Sri Lanka does not need to reinvent the wheel. It needs policy alignment, institutional reform, and commercial courage.

1. Develop Tiered Professional Leagues

Introduce sustainable league structures in football, volleyball, rugby, athletics meets, women’s sports, and regional cricket. Even semi-professional leagues can stimulate local economies.

2. Encourage Private Investment

Create tax incentives, sponsorship protections, and long-term lease frameworks to attract corporate partners into sports ownership, marketing, and infrastructure.

3. Strengthen School-to-Club Pathways

Formalise school sports pipelines into club and league systems, ensuring talent progression and retention.

4. Protect Athletes as Professionals

Introduce minimum contracts, medical insurance, injury compensation, and retirement transition programmes.

5. Activate Sports Tourism

Leverage Sri Lanka’s geography to host regional tournaments, training camps, beach sports events, and international friendlies, boosting hospitality and local economies.

6. Modernise Governance

Ensure transparent administration, professional venue management, and data-driven decision-making to build investor confidence.

A Strategic Opportunity

Sri Lanka stands at a moment where sport can become an economic pillar, not merely a medal-driven activity. With regional competition intensifying and youth participation declining, the need to professionalise sport has never been more urgent.

Building a sports economy is not just about revenue — it is about nation-building, youth employment, health, unity, and global relevance. The global and Indian experiences prove that with vision and structure, sport can power both economic growth and athletic excellence.

For Sri Lanka, the question is no longer whether sport can drive the economy — but whether the country is ready to let it.

By B Aravinth

Cricket

Wanindu Hasaranga Ruled Out of ICC Men’s T20 World Cup 2026 Due to Hamstring Injury

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Sri Lanka’s ICC Men’s T20 World Cup 2026 campaign has suffered a massive setback, with star all-rounder Wanindu Hasaranga ruled out of the remainder of the tournament due to a hamstring injury.

Medical scans conducted after Sri Lanka’s opening match against Ireland confirmed that the leg-spinning all-rounder will require several weeks of rehabilitation, effectively ending his participation in the global showpiece event.

Hasaranga, a central figure in Sri Lanka’s T20 plans over the past few years, sustained the injury during the early stages of the tournament. His absence leaves a significant void in both the bowling and lower-middle-order batting departments.

Widely regarded as one of the most dangerous T20 bowlers in world cricket, Hasaranga’s impact in ICC tournaments has been remarkable. With 40 wickets, he currently stands as the second-highest wicket-taker in T20 World Cup history — a statistic that underlines the scale of the blow to the co-hosts.

Beyond the numbers, Hasaranga’s ability to break partnerships in crucial moments and provide quick runs under pressure has made him indispensable to Sri Lanka’s balance in white-ball cricket.

Attention now turns to potential replacements. Leg-spinner Dushan Hemantha is expected to be named as Hasaranga’s replacement, pending official approval from Sri Lanka Cricket and the ICC Event Technical Committee. While Hemantha offers promise and attacking intent, stepping into the shoes of Sri Lanka’s premier match-winner will be a formidable challenge.

As of now, Sri Lanka Cricket is yet to issue a formal statement confirming the squad alteration.

With the tournament still in its early stages, Sri Lanka must now regroup quickly. The onus will fall on the remaining senior bowlers to shoulder added responsibility as the hosts attempt to keep their World Cup ambitions alive without one of their most influential players

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Cricket

“I Just Wanted to Score a Few Boundaries” – Kamindu Mendis Stars as Sri Lanka Beat Ireland in T20 World Cup Opener

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Sri Lanka’s decision to draft in Kamindu Mendis at the last moment proved inspired, as the all-rounder produced a match-turning knock to guide the hosts to a 20-run victory over Ireland in their opening match of the ICC Men’s T20 World Cup 2026 at the R. Premadasa Stadium on Sunday.

Coming in with Sri Lanka in trouble at 86 for 4, Kamindu counter-attacked with a blistering 44 off just 19 deliveries, striking four boundaries and two sixes to swing momentum firmly in the hosts’ favour. His innings transformed a faltering batting effort into a competitive total of 163.

I just wanted to score a few boundaries and put a partnership with Kusal Mendis

Kusal was outstanding today. He deserves a lot of credit. We wanted someone to bat through the innings.

Kusal Mendis played the anchor role to perfection, remaining unbeaten on a composed half-century and ensuring Sri Lanka batted through their 20 overs — something that looked unlikely during the middle phase of the innings.

Sri Lanka’s bowling unit then delivered a disciplined performance, led by their spin trio of Maheesh Theekshana, Wanindu Hasaranga and Dunith Wellalage, who shared seven wickets to derail Ireland’s chase. Hasaranga claimed three scalps, taking his overall T20 World Cup wicket tally to 40 — second only to Bangladesh’s Shakib Al Hasan (50).

There was a brief scare for Sri Lanka when Hasaranga limped off after his second over, sparking concern over his fitness. However, the skipper returned to complete his spell, easing fears ahead of the remaining group matches.

Ireland showed early promise, with George Dockrell returning impressive figures of 2 for 17 and a solid 49-run partnership between Lorcan Tucker and Harry Tector keeping them in the contest. But once spin was introduced in tandem, the visitors struggled to maintain momentum.

From 105 for 2, Ireland lost wickets in quick succession and were eventually bowled out for 143 in 19.5 overs, with Matheesha Pathirana picking up two wickets in the final over.

They got about 15 runs too many,” admitted Ireland captain Paul Stirling.

We were a bit sloppy in the field and we’ve got plenty of work to do before the next game. Spin is going to play a big role in this tournament, and that’s something we need to adapt to quickly.

Co-hosting the 20-team tournament alongside defending champions India, Sri Lanka could not have asked for a better start. The victory not only earned crucial points but also injected confidence into a campaign that carries high expectations on home soil

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Cricket

Pakistan–India Match Uncertainty Could Cost Sri Lanka Up to US$30 Million at ICC T20 World Cup 2026

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Sri Lanka is facing a potential financial setback of up to US$25–30 million amid growing uncertainty over the highly anticipated Pakistan vs India clash at the ICC Men’s T20 World Cup 2026, according to reports from local media and industry sources.

The island nation, which is set to co-host the global tournament, had been preparing to stage the marquee encounter on 15 February 2026 at the R. Premadasa International Cricket Stadium in Colombo. However, reports suggesting that Pakistan may boycott the fixture against India have raised serious concerns among Sri Lankan cricket officials and key stakeholders in the tourism and hospitality sectors.

The Pakistan–India contest is widely regarded as the single biggest commercial driver of any ICC tournament, attracting massive global television audiences, sold-out stadiums and premium sponsorship interest. Sri Lanka had positioned the fixture as a major economic catalyst, with expectations of a sharp spike in international arrivals and record revenues across multiple sectors.

While no official cancellation has been announced, uncertainty surrounding Pakistan’s participation — reportedly linked to directives from the Pakistan government — has already begun to impact projected earnings. Tourism industry sources indicate that hotel bookings in Colombo and surrounding areas have slowed, with some early cancellations reported as fans and tour operators await clarity.

The potential fallout could be significant for Sri Lanka’s tourism-dependent economy, which increasingly relies on high-profile international sporting events to drive short-term visitor inflows and spending.

Commercial and Tourism Impact

Ticket sales for the India–Pakistan match were expected to be among the highest of the tournament, featuring premium pricing and early sell-outs typical of fixtures involving the two rivals. A boycott would likely result in major losses from ticket revenue, sponsorship activations, stadium advertising and broadcast-linked commercial agreements.

Beyond cricketing revenue, the ripple effect would be felt across airlines, travel agencies, restaurants, transport providers and small businesses operating around event venues. Informal sector workers — including vendors, drivers and temporary service staff — also stand to lose a crucial source of short-term income tied to matchday demand.

Sri Lanka Cricket Appeals to PCB

In an effort to prevent a damaging outcome, Sri Lanka Cricket (SLC) President Shammi Silva has formally written to the Pakistan Cricket Board (PCB), urging it to reconsider reports that Pakistan may skip the February 15 fixture in Colombo.

In the letter, SLC stated that it had learned through media reports that while Pakistan is expected to participate in the tournament, a decision may have been taken to avoid the match against India. Sri Lanka Cricket emphasized that all commercial, logistical, security and operational arrangements for hosting the tournament have already been finalized.

SLC further highlighted that ticket sales for matches scheduled in Sri Lanka — particularly the India–Pakistan clash — had recorded exceptionally strong demand, underlining the scale of public interest and commercial expectations attached to the fixture.

Sri Lanka Cricket warned that Pakistan’s absence from such a high-profile match could have far-reaching economic consequences, including reduced tourism inflows, substantial revenue losses and broader impacts on businesses linked to the event.

With the ICC Men’s T20 World Cup 2026 drawing closer, stakeholders across Sri Lanka are now anxiously awaiting clarity, hoping that diplomacy and dialogue can preserve cricket’s biggest rivalry — not only for the integrity of the tournament, but for the country’s economic interests as well.

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