Introduction: The New Currency of Leadership
For decades, business success was largely measured by bottom lines and brainpower. IQ, degrees, and technical expertise dominated leadership recruitment. But today, something else is quietly rewriting the rules of corporate power — emotional intelligence (EQ).
From high-stakes boardrooms to everyday team management, the most effective leaders in 2025 are not those who speak the loudest or know the most — but those who connect, empathize, and inspire. In Sri Lanka and around the world, businesses are discovering that EQ isn’t soft — it’s strategic.
Emotional Intelligence (EQ) refers to the ability to understand, manage, and express one’s own emotions while navigating the emotions of others. It includes:
A high IQ may get someone hired. But it’s EQ that helps leaders thrive under pressure, build trust, and lead teams through uncertainty — the most critical skillset in today’s volatile business climate.
According to a Harvard Business Review study, leaders with high EQ:
In Sri Lanka, where diverse workforces and hierarchical structures are common, emotionally intelligent leaders are better equipped to bridge generational gaps, manage cross-functional teams, and build inclusive cultures.
During the pandemic and post-crisis recovery, it was the emotionally intelligent leaders — not just the smartest — who stabilized morale, adapted quickly, and kept businesses afloat.
Several top Sri Lankan firms are investing in leadership development programs that center around emotional intelligence. For example:
Beyond workshops, leaders are being encouraged to practice open-door policies, conduct regular emotional check-ins with teams, and reflect on feedback through 360-degree evaluations.
A technically brilliant leader might shut down disagreement with authority. A leader with high EQ, however, listens actively, asks the right questions, and finds compromise — reducing tension and improving collaboration.
During mergers or restructuring, high-EQ leaders acknowledge uncertainty, address fears transparently, and guide their teams emotionally through the transition — not just logistically.
Rather than punishing low performers, emotionally intelligent leaders explore the root cause — burnout, misalignment, or personal issues — and work to resolve it supportively.
Today’s C-suite executive must do more than strategize — they must lead culture. That means:
Global CEOs like Satya Nadella (Microsoft), Jacinda Ardern (former New Zealand PM), and Arvind Krishna (IBM) have shown that compassionate leadership enhances innovation, loyalty, and public trust.
Sri Lanka’s business leaders are beginning to follow suit, especially in HR-heavy industries like garments, BPO, and education.
Unlike IQ, emotional intelligence isn’t fixed. It can be developed through:
Executive education programs from INSEAD, Harvard, and even local MBA providers now include modules focused on EQ. For example, the Postgraduate Institute of Management (PIM) in Sri Lanka encourages reflective learning as part of leadership grooming.
At the organizational level, emotional intelligence leads to:
Emotionally intelligent companies also tend to weather crises better. Teams with psychological safety adapt more quickly, retain critical staff, and avoid internal chaos.
Despite the benefits, integrating emotional intelligence into corporate culture comes with hurdles:
Overcoming these requires sustained leadership commitment, system-level support from HR, and consistent internal communication that values emotional literacy.
As young professionals enter the workforce, their expectations are reshaping corporate leadership. They value:
To retain this talent, Sri Lankan businesses must build emotionally intelligent environments that prioritize empathy, inclusion, and human connection — not just efficiency.
Conclusion: Leading with Heart and Head
In an era defined by uncertainty, automation, and global pressure, leadership cannot rely on IQ alone. Emotional intelligence is no longer optional — it’s essential.
Sri Lanka’s next wave of leaders — whether in banks, startups, or boardrooms — must embrace this shift. Because in the future of business, the strongest leader isn’t the one who knows the most — it’s the one who understands people the best.
And in that future, the smartest strategy is to lead with both heart and head.
