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How the Global Sports Economy Works — Lessons from the World and India, and What Sri Lanka Can Do Next
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:
- Professional leagues and structured competitions
- Strong private-sector partnerships
- Athlete-centric commercial ecosystems
- 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
News
SLC Confirms Steady Progress of Jaffna International Cricket Stadium Project
Sri Lanka Cricket (SLC) has confirmed that construction work on the Jaffna International Cricket Stadium (JICS) in Mandaitivu, Jaffna, is progressing steadily and in line with planned timelines.
In an official press release, SLC stated that construction activities at the venue had been temporarily suspended due to the impact of the Ditwah Cyclone, which disrupted the scheduled work programme. The weather conditions also led to the postponement of the first trial match, which had been initially scheduled for January 14, 2026.
Following the improvement in conditions, construction has now resumed, and SLC has announced that the inaugural trial match at the stadium will be held after the conclusion of the ICC Men’s T20I Cricket World Cup 2026, which will be co-hosted by Sri Lanka and India.
SLC reiterated its confidence that the stadium will be completed within the projected timeline, emphasising that the project remains a priority development initiative.
The Jaffna International Cricket Stadium is being developed on 48 acres and will feature 10 international-standard centre wickets, with boundary distances extending up to 80 metres, meeting global playing standards.
The stadium forms part of SLC’s long-term vision to establish a comprehensive sports city in Jaffna, spanning a total area of 138 acres. This landmark project is expected to play a key role in strengthening cricket development in Sri Lanka’s Northern Province and aligns with the objectives of SLC’s National Pathway Programme, aimed at nurturing talent across all regions of the country.
News
Ministry of Sports Issues Clarification on Use of Sugathadasa Stadium for Musical Concert
The Ministry of Youth Affairs and Sports has issued an official clarification regarding the provision of the Sugathadasa Outdoor Stadium for a musical concert scheduled for December 28, 2025, following public discussion and media coverage on the matter.
In a press release dated December 28, 2025, the Ministry stated that the decision to lease the stadium for a musical event was taken in the context of the current condition of the athletics track, which it described as being in a dilapidated state and unsuitable for competitive sporting activities.
According to the statement, the existing running track has deteriorated due to potholes and extensive wear and is not currently in use for sporting events. The Ministry further noted that tender procedures have already commenced for the removal of the existing track and the construction of a new one.
Stadium Inactivity Cited
The Ministry explained that as the stadium would remain inactive for sports during the upcoming reconstruction period, the management authority agreed to lease the premises for the concert, subject to applicable charges and conditions.
It also stated that the responsibility for conducting the event rested with the organisers and that the proposed concert would not result in additional significant damage to the running track, as the surface is already scheduled for complete removal as part of the renovation process.
Response to Public Commentary
In its release, the Ministry strongly criticised what it described as distorted statements and inaccurate reporting by certain individuals and media outlets, which it said had portrayed the event as a major setback to sports and stadium infrastructure.
The Ministry requested media institutions to publish or broadcast the clarification in the interest of public awareness and transparency, noting that photographs and video footage relating to the stadium’s current condition were provided alongside the statement.
Context
The clarification follows earlier public concern and debate over the use of national sports facilities for non-sporting events, particularly in relation to athlete access, venue management practices, and adherence to established policies. The Ministry’s statement represents its official position on the matter
News
Postponement of Event at Sugathadasa Stadium Highlights Broader Concerns Over Venue Management and Sports Access
The postponement of the Ne-Yo Live in Sri Lanka concert, scheduled to take place on December 28 at the Sugathadasa Outdoor Stadium, has prompted renewed public discussion regarding venue management procedures, financial compliance, and the use of national sports facilities for non-sporting events.
In a brief statement issued via social media, the event organisers, Brown Boy Presents, announced that the concert had been postponed due to “unforeseen circumstances and factors beyond their control.” The statement further noted that the refund process is being finalised and that ticket holders will be informed accordingly. While issued tickets were said to remain valid for a future date, no revised date has been officially announced.
Sports Activities and Venue Access
The Sugathadasa National Sports Complex is Sri Lanka’s premier athletics facility, regularly used by national athletes and sports organisations. According to information shared by sports stakeholders, access to the ground had been restricted from November onwards, with users reportedly informed that the venue would be unavailable due to renovation-related requirements.
The subsequent approval of a large-scale entertainment event has led to questions from within the sporting community regarding consistency in decision-making and prioritisation of venue usage. Sports administrators and athletes have expressed concern that activities were halted in the interest of ground preservation, while preparations for a non-sporting event were later observed at the same venue.
It has also been noted by technical personnel that heavy staging and audience infrastructure can place strain on an athletics surface, highlighting the importance of professional ground-use assessments before approving such events.
Administrative and Financial Procedures
Available reports indicate that the organisers initially made a partial payment to reserve the venue, with further payments expected under the stadium’s financial regulations. According to established procedures, full settlement of venue fees is required prior to an event being authorised to proceed.

Despite ongoing discussions regarding payments, construction of a stage was observed within the stadium premises, drawing public attention. Subsequent confirmations reportedly indicated that the remaining fees had not been settled by the stipulated deadline.
Following this, permission for the event was cancelled on December 25, citing non-compliance with financial requirements. Equipment and materials used for stage construction were later removed by the relevant service provider, reportedly due to non-payment.


Concerns Raised and Public Accountability
The incident has sparked broader debate regarding oversight, compliance with financial protocols, and transparency in venue allocation decisions. Several stakeholders have called for clearer communication and publicly accessible guidelines governing the use of national sports facilities, particularly when non-sporting events are considered.
As of now, no official statements have been released by the Ministry of Sports, the Sugathadasa National Sports Complex Authority, or related administrative bodies explaining the approval process or addressing the concerns raised by athletes and sports organisations.

Need for Policy Clarity
While entertainment events can contribute to economic activity, sports administrators note that national sports venues exist primarily to serve athletes and sporting development. The situation has underscored the importance of balancing commercial opportunities with the long-term needs of sport, alongside strict adherence to established administrative and financial procedures.
Observers within the sports community have emphasised that clear policies, transparent processes, and consistent enforcement are essential to maintaining confidence in the management of national sports infrastructure.
It is also relevant to note that the Sugathadasa National Sports Complex traditionally operates under a no-alcohol policy within its premises, in line with regulations governing national sports venues. However, promotional material related to the proposed event indicated that certain ticket packages included tables offering alcoholic beverages as part of the experience. This apparent contrast has raised further questions among sports stakeholders regarding policy enforcement, venue usage conditions, and oversight, particularly when national sporting facilities are made available for non-sporting events.
As ticket holders await further communication and athletes seek clarity on access to training facilities, the episode serves as a reminder of the need for professional governance and accountability in the management of Sri Lanka’s key sporting venues.
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