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📈 SLID Hosts Corporate Director Summit 2026 to Build Future-Ready Boards

The Sri Lanka Institute of Directors (SLID) will host the Sri Lanka Corporate Director Summit 2026 on 22nd July 2026 at Cinnamon Grand Colombo. Marking SLID's 25th anniversary, the premier governance forum aims to equip business leaders to transition from traditional compliance to becoming strategic drivers of growth, resilience, and innovation. Key Highlights & Session Breakdowns: • Strategic Governance: Keynote address "Future-Ready Sri Lankan Boards: From Compliance to Sustainable Growth" will draw lessons from emerging economies like India to enhance national competitiveness and attract foreign investment. • Technology & Digital Risk: A dedicated session will address board oversight of ICT/BPM relevant themes, focusing on governing AI, cyber resilience, data governance, and emerging digital risks. • Reputation & ESG: Sessions will focus on building stakeholder trust, transparency, ESG considerations, ethical leadership, and navigating corporate reputation through economic uncertainty. • Talent & Culture: Discussions will center on workforce transformation, succession planning, and the board's role in aligning talent with long-term organizational value. • Economic Impact: Proceedings will conclude with a fireside chat on how globally credible governance practices can directly boost Sri Lanka’s economic growth and investment attractiveness. _Note: Held in strategic partnership with Deloitte Sri Lanka, alongside knowledge partnerships with CPA, Ma Foi, and the University of Buckingham._

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📈 SLID Hosts Corporate Director Summit 2026 to Build Future-Ready Boards

The Sri Lanka Institute of Directors (SLID) will host the Sri Lanka Corporate Director Summit 2026 on 22nd July 2026 at Cinnamon Grand Colombo. Marking SLID's 25th anniversary, the premier governance forum aims to equip business leaders to transition from traditional compliance to becoming strategic drivers of growth, resilience, and innovation. Key Highlights & Session Breakdowns: • Strategic Governance: Keynote address "Future-Ready Sri Lankan Boards: From Compliance to Sustainable Growth" will draw lessons from emerging economies like India to enhance national competitiveness and attract foreign investment. • Technology & Digital Risk: A dedicated session will address board oversight of ICT/BPM relevant themes, focusing on governing AI, cyber resilience, data governance, and emerging digital risks. • Reputation & ESG: Sessions will focus on building stakeholder trust, transparency, ESG considerations, ethical leadership, and navigating corporate reputation through economic uncertainty. • Talent & Culture: Discussions will center on workforce transformation, succession planning, and the board's role in aligning talent with long-term organizational value. • Economic Impact: Proceedings will conclude with a fireside chat on how globally credible governance practices can directly boost Sri Lanka’s economic growth and investment attractiveness. _Note: Held in strategic partnership with Deloitte Sri Lanka, alongside knowledge partnerships with CPA, Ma Foi, and the University of Buckingham._

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📈 Aravinda de Silva’s Arcasia Holdings to Acquire Controlling Stake in Industrial Asphalts PLC

Arcasia Investment & Trading (Pvt) Ltd, backed by Arcasia Holdings founded by legendary cricketer Aravinda de Silva, alongside ATX Partners (Pvt) Ltd, has entered into binding agreements to acquire a 50.16% controlling stake in Industrial Asphalts (Ceylon) PLC. • Transaction Details: The acquiring consortium signed agreements on July 7 to purchase a combined total of 1,880,693,010 ordinary voting shares. • Share Breakdown: The acquisition includes 1,800,693,010 shares (approx. 48.03%) from Executive Director Govindasamy Ramanan and an additional 80,000,000 shares (approx. 2.13%) from Srikumar Balasubramaniyam. • Mandatory Offer Triggered: Because the acquisition crosses the 30% regulatory threshold under the Company Take-overs and Mergers Code 1995, the consortium will launch a mandatory offer to buy all remaining ordinary voting shares. • Next Steps: The final offer price and specific terms will be officially disclosed once the Securities and Exchange Commission of Sri Lanka grants necessary approvals.

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💼 SANASA Life Resumes Full Operations After IRCSL Suspension Lifted

• Regulatory Update: SANASA Life Insurance has officially resumed full business operations following the lifting of a temporary regulatory suspension by the Insurance Regulatory Commission of Sri Lanka (IRCSL). The company confirmed it has met all necessary regulatory requirements. • Operations & Continuity: Throughout the suspension period, valid claims were continuously honored, ensuring uninterrupted service to existing policyholders. • Strategic Focus: Moving forward, the company plans to implement nationwide initiatives to reconnect with customers, re-energize its sales force, and strengthen ties with insurance brokers, banks, and corporate partners. • Community & Growth: Leveraging its three-decade legacy and the trusted SANASA society network, the company aims to enhance customer engagement and expand affordable life insurance solutions across Sri Lankan communities. _Note: CEO Nuwanpriya Gunawardena emphasized a renewed commitment to governance, compliance, and long-term stakeholder value._

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📈 Tobacco Harm Reduction Gaining Ground Despite Regulatory Gaps

A shift from traditional combustible tobacco to smokeless nicotine alternatives is backed by decades of science, though awareness gaps and skepticism persist, according to Analucia Saraiva, Senior Manager of Scientific Research at British American Tobacco (BAT). • Key Highlights & Science: The scientific consensus indicates that the smoke from burning tobacco—not nicotine itself—is the primary cause of smoking-related diseases. Smokeless tobacco pouches and vapour products sit much lower on the "risk continuum" because they involve no combustion, ash, or tar. • Market & Regulatory Context: BAT aims to transition its revenues heavily toward smokeless products, ensuring they are affordable, acceptable, and accessible. However, regulatory prohibitions currently exist in Sri Lanka for both heated tobacco products and smokeless tobacco pouches. • Challenges & Future Outlook: Much of the current research is industry-led, creating policy skepticism. Independent public health bodies are increasingly validating the reduced-risk potential of these alternatives. Healthcare professionals, especially in low- and middle-income countries, are viewed as critical to bridging the awareness gap for adult smokers who would otherwise continue smoking, while strict measures remain vital to prevent underage access.

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📈 LCB Finance Posts 55% PBT Growth, Assets Approach Rs. 13 Bn

LCB Finance PLC has reported a year of robust financial growth and strategic expansion for the financial year ended 31 March 2026, marking a decade of operations with total assets nearing a key milestone. Overall Financial Performance • Profit Before Tax (PBT) surged by 55% YoY to Rs. 439 Mn. • Total assets reached Rs. 12.87 Bn, driven by sustainable growth and prudent risk management. • Total operating income rose 36.9% YoY to Rs. 1.34 Bn. • Net interest income grew by 43.03% YoY to Rs. 1.21 Bn, reflecting disciplined balance sheet management. • Customer deposits increased by 35% YoY to Rs. 6.29 Bn, indicating strong market confidence. Sector & Portfolio Breakdown • The total lending portfolio expanded by 32% YoY to Rs. 10.30 Bn, supporting crucial sectors for national employment and economic diversification, including SMEs, self-employment, housing, tourism, transport, and women-led businesses. • The gold loan portfolio recorded an exceptional growth of 136%, highlighting high demand for secured, short-term financing solutions. Network Expansion & Outlook • The company expanded its physical presence to 23 locations by opening two new branches, including a Premier Branch in Wellawatte, targeting underserved and regional markets. • LCB Finance aims to accelerate its trajectory by opening 7 additional branches before the end of 2026 alongside driving its digital transformation and sustainability agenda.

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AmCham Sri Lanka’s "Her Story, Her Voice" Convenes Top Women Leaders on Leadership & Legacy 📈

The American Chamber of Commerce in Sri Lanka (AmCham Sri Lanka) successfully hosted its "Her Story, Her Voice" event at Cinnamon Life Colombo, bringing together influential women leaders to share personal journeys on resilience, governance, and institutional impact. • Key Highlights: The forum shifted away from conventional leadership dialogues to focus on the personal and professional experiences of women shaping public and corporate sectors in Sri Lanka. It targeted senior corporate executives, entrepreneurs, policymakers, and emerging leaders to foster national professional connections. • Public Sector Insights: A fireside chat featured Hon. Rosy Senanayake (former Mayor of Colombo) and Hon. Shiranee Tilakawardane (former Chief Justice of Sri Lanka). Discussions centered on breaking institutional stereotypes, navigating male-dominated fields, and implementing the "4 Cs" of leadership: Competence, Consistency, Courage, and Character. • Corporate & Family Enterprise: A dedicated session on family enterprises featured Manjula Mathews (Director, Janashakthi Group) and Shehara De Silva (Group Managing Director, McLarens Holdings Limited). The dialogue focused on balancing corporate legacy with modern innovation, executing strategic governance, and maintaining business longevity through evolving market environments. • Organisational Context: AmCham Sri Lanka remains a primary forum for trade, investment, and business relations between Sri Lanka and the United States. The influential chamber represents over 350 members from senior leadership across major Sri Lankan, American, and multinational corporations.

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Court Battle Begins: Shareholders Seek to Sue NDB Board Over Rs. 13.2 Bn Fraud ⚖️

• Legal Action: Petitioners appeared before the Commercial High Court seeking leave to bring a derivative action against the Board of Directors and external auditors of National Development Bank (NDB). Shareholders argue that a severe lack of due oversight, and not just the fraud itself, caused the bank's massive losses. • The Financial Impact: The alleged fraud totals approximately Rs. 13.2 Bn, which constitutes a significant 15.3% of NDB’s Rs. 86 Bn net asset base. Court filings reveal receivables tied to CEFT transactions skyrocketed eight-fold in two years, jumping from around Rs. 1.4 Bn in 2023 to over Rs. 12.2 Bn in 2025—a pattern petitioners argue bankers and auditors should have flagged. • Systemic & Governance Failures: Evidence from the bank's IT department exposed a "password-sharing culture" where staff could log into colleagues' accounts via personal laptops. Furthermore, NDB's public assurances of stability were quickly undercut by a Fitch Ratings downgrade citing weak internal risk controls. • Conflicts & Next Steps: Petitioners questioned the independence of NDB's forensic audit due to the Audit Committee Chair’s past ties to PwC Sri Lanka (now absorbed by Deloitte, the firm conducting the review). The Board is accused of breaching statutory duties of care and good faith under the Companies Act. _Status_: Based on initial court proceedings; the matter resumes in the Commercial High Court on 8 July 2026.

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📈 BOC Maldives Marks 45 Years with New Digital Initiative

Bank of Ceylon (BOC) Maldives recently celebrated its 45th anniversary, highlighting its role in regional trade, infrastructure financing, and cross-border financial connectivity. • Financial Connectivity: In 2025 alone, the branch channelled US$ 126.4 Mn in remittances back to Sri Lanka, serving as a critical pipeline for foreign currency. It also facilitated US$ 0.6 Mn in timely relief remittances following Cyclone Ditwa. • Sector Impact: Since its establishment in 1981, the branch has actively financed major regional projects spanning tourism & resort development, construction, real estate, fisheries, and aviation, alongside key infrastructure like the Hulhumalé Reclamation Project Phase II. • Digital Expansion: Marking its next phase of growth, BOC Maldives announced the upcoming launch of its new internet banking platform, continuing its tech footprint in the region as the first bank to historically introduce ATMs to the Maldives. • Network Footprint: BOC Maldives remains a strategic hub within BOC's broader international network, which connects operations across London, Chennai, Seychelles, Malé, and Hulhumalé.

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📈 Singer Finance Asset Base Crosses Rs. 100 Billion Milestone

• Financial Performance Overview: Singer Finance (Lanka) PLC announced that its total asset base has officially exceeded Rs. 100 billion during the first quarter of the 2026/27 financial year. • Data Status & Credibility: This milestone is based on the company's provisional, unaudited management accounts for the quarter. • Management Commentary: Managing Director Thushan Amarasuriya attributed the growth to the continued trust and support of all stakeholders, marking it as a key milestone in the financial services sector player's expansion strategy.

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🏦 HDFC Bank Sri Lanka Concludes 41st AGM

• Event Details: HDFC Bank of Sri Lanka successfully held its 41st Annual General Meeting (AGM) on June 26, 2026. The meeting took place at the auditorium of the Sri Lanka Foundation Institute in Colombo 07. • Attendance: The event saw active participation from the bank’s shareholders, corporate management, and the Board of Directors. • Leadership Present: Key attendees from the board included Chairman Pro-tem K.B. Wijeyaratne, General Manager/CEO Hemal Lokugeegana, alongside directors Dr. P.A. Krishantha, A. N. Hapugala, J. M. P. S. Kaushallya, K. K. G. Premathilake, S. S. S. Nandani, J. K. A. Sirinatha, and R. A. S. Ranawaka. _Note: Financial figures and sector growth metrics were not disclosed in the initial report._

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📈 LB Finance-AMF Amalgamation Effective 31 July; AMF Shares to be Suspended

• Merger Completion: Associated Motor Finance Company PLC (AMF) announced its amalgamation with parent company LB Finance PLC will take effect on 31 July 2026, finalizing their finance sector consolidation following necessary regulatory and shareholder approvals. • Trading Suspension: AMF shares will be suspended from trading on the Colombo Stock Exchange (CSE) starting from the close of market on 27 July 2026. • Shareholder Terms: AMF shares will not convert into LB Finance shares. Instead, minority shareholders will receive a cash consideration of Rs. 55 per share. • Ownership Structure: LB Finance currently holds a 73% stake in AMF following a voluntary offer late last year at Rs. 50 per share. Upon completion, the shares held by LB Finance will be cancelled under Section 240(3)(a) of the Companies Act. • Market Impact: AMF will cease to exist as a separate listed entity, with all its businesses and assets fully absorbed into LB Finance. The transaction has been approved by the Governing Board of the Central Bank of Sri Lanka.

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Adani Ports Partners with MSC in $1.4 Bn Vizhinjam Port Deal 🚢

• Overall Deal: India’s Adani Ports and Special Economic Zone is selling a 49% stake in its Vizhinjam port to Switzerland’s MSC Group for US$ 1.4 Bn. • Strategic Context: According to Adani Ports, this transaction represents the largest foreign private investment in domestic port infrastructure within India. MSC, the world's largest container shipping company, will execute the investment via its unit, Terminal Investment. • Economic Implications: Located in Kerala, the Vizhinjam port is a key growth hub. The partnership is strategically aimed at boosting cargo volumes, driving shipping traffic, and accelerating capacity ramp-up. • Regional Context: While this development centers on Indian maritime infrastructure, transshipment hubs like Vizhinjam directly connect to the broader South Asian logistics network, heavily interacting with regional shipping and logistics lanes. • Partnership History: This transaction marks the third joint venture between Adani Ports and MSC, following existing partnerships at the Mundra and Ennore ports. The deal remains subject to regulatory approvals.

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Product & Service Launches / Business Expansions

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✈️ Vietjet Launches Special 7/7 Promo Ahead of Colombo–Ho Chi Minh City Flight Launch

• The Offer: Vietjet is celebrating its July Double Day (7/7) with a 3-day sale from July 7–9, 2026. Sri Lankan travelers can access Eco tickets starting from US$ 90 one-way (inclusive of taxes and fees). • Premium Discounts: Passengers can secure a 20% discount on Deluxe and SkyBoss base fares using the promo code SALE77 across the airline's new Colombo – Ho Chi Minh City service. • Flight Details: The promotion comes ahead of Vietjet’s inaugural flight between Colombo and Ho Chi Minh City on August 18, 2026. The flight will operate three times a week (Tuesdays, Thursdays, and Saturdays) with a duration of approximately 5 hours, enhancing Sri Lanka's regional tourism and business connectivity. • Travel Period: Offers are valid for travel between August 15, 2026, and March 31, 2027 (excluding public holidays and peak periods). • Network Expansion: The route provides Sri Lankan travelers direct access to Vietnam alongside onward connections to Vietjet's broader network across Asia, Australia, and Europe.

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📈 BYD VP Visits Sri Lanka as EV Brand Takes Market Lead

BYD Vice President, Liu Xueliang, officially visited Sri Lanka to review the rapid growth of the BYD and DENZA brands, highlighting the country's strategic role in its South Asian expansion. • Market Dominance: Within just nine months of vehicle imports resuming, BYD secured approximately 37% of all brand-new vehicle registrations and over 70% of electric vehicle (EV) registrations in Sri Lanka. • Global Context: The visit follows BYD's global achievement of 4.6 million New Energy Vehicle (NEV) sales in 2025. It was also named the World's Most Innovative Automotive Group in 2026 by Germany's Center of Automotive Management. • Future Strategy: Discussions between BYD and its local distributor, John Keells CG Auto (JKCG Auto), focused on scaling up sales, after-sales operations, charging infrastructure, and technical expertise to accelerate Sri Lanka's automotive industry transition toward sustainable mobility.

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✈️ Emirates to Double A350 Operations in Colombo from August

Emirates will introduce a second daily A350 service between Dubai and Colombo starting 8 August, replacing a current Boeing 777 aircraft. The expansion underscores the airline's continued investment in Sri Lanka as it marks 40 years of operations in the country. • Aviation & Infrastructure: The deployment of the additional A350 aircraft (flights EK648/649) will double the number of Premium Economy seats available on the route, enhancing the capacity for premium travel to and from Sri Lanka. • Flight Operations: Emirates continues to operate four daily flights to Colombo (three non-stop Colombo-Dubai flights and one daily service via Male) using a mix of Airbus A350 and Boeing 777 aircraft. • Schedule & Timings: The new daily A350 service departs Dubai at 16:10hrs, arriving at Bandaranaike International Airport (CMB) at 22:10hrs. The return flight departs CMB at 02:55hrs, reaching Dubai at 05:50hrs (all times local). • Economic Impact: The added capacity and modern aircraft features support Sri Lanka’s tourism and trade sectors by connecting Colombo to nearly 140 destinations across Emirates' global network.

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📈 Nawaloka Hospitals Launches Mobile Dengue Testing Amid Surge

In response to the rising national dengue epidemic, Nawaloka Hospitals Colombo has launched a proactive community healthcare initiative to boost early detection and expand clinical capacity based on provisional updates. • Healthcare Services & Innovation: Launched a mobile testing unit delivering diagnostic support directly to patients' homes. The service eliminates travel requirements for the unwell, facilitating faster diagnosis and immediate clinical guidance during the critical early stages of the disease. • Infrastructure Expansion: Established fully operational, designated dengue wards with expanded bed capacity to streamline patient flow and manage the increasing volume of admissions. • Clinical Management: Empowered dedicated medical and nursing teams, alongside critical care specialists, to provide closer clinical monitoring, enhanced infection control, and prioritized attention for high-risk, severe, or complicated cases.

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🛒 Keells Nexus Drives Digital Retail Loyalty for Sri Lankan Households

Keells Nexus has transitioned into a highly engaged digital-first rewards platform, moving beyond traditional physical loyalty cards to offer real-time value for over two million registered members navigating tighter household budgets. • Digital Evolution & Features: Launched on 13 February 2026, the Keells Nexus app integrates a digital Nexus card, QR checkout, and promotional views. Recent major updates introduced offline QR capability, transaction histories, digital vouchers, and app-led engagement tools to simplify tracking and enhance shopping convenience. • Campaign Engagement: The ongoing "Spin and Win" campaign has secured over 100,000 engagement instances, distributing more than 5,000 gifts (including high-value tech, appliances, and bill discounts) out of a pool of over 10,000 total prizes. • Economic Context & Retail Tech: Amid conscious spending shifts in Sri Lanka, the platform acts as a bridge for family budget optimization through visible savings. This aligns with broader investments in national retail technology, building on existing modern trade infrastructure like self-checkout counters to digitize regular consumer touchpoints.

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📈 Sampath Bank Launches Google Pay for Contactless Global Payments

Banking & Tech Update: Sampath Bank PLC has officially rolled out Google Pay for all its Visa and Mastercard Credit and Debit Cardholders in Sri Lanka, accelerating the country's shift toward a secure, mobile-first digital payment ecosystem. • The Solution: Enables fast, secure tap-to-pay functionality on Android devices, allowing users to digitize physical cards for transactions across in-store, in-app, and online platforms. • Global Reach: Cardholders can use the solution locally and at millions of merchants worldwide without carrying physical cards, catering heavily to digitally savvy users and frequent travelers. • Advanced Security: Employs tokenization technology, replacing sensitive card information with secure digital identifiers to ensure high-level data protection during every transaction. • Economic Context: Driven by the banking & digital finance sector, this integration supports national digital adoption by aligning Sri Lanka’s financial infrastructure with global digital trends, enhancing international transaction capabilities, and boosting modern consumer convenience.

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HNB Life Partners with GMOA to Offer Tailored Insurance to Medical Professionals 📈

• Strategic Collaboration: HNB Life PLC has signed a Memorandum of Understanding (MoU) with the Government Medical Officers’ Association (GMOA) to provide specialized protection and wealth creation opportunities to Sri Lanka’s medical community. • Exclusive Benefits: Through this partnership, GMOA members will gain access to tailored life insurance and investment solutions, complemented by unique value-added features designed to secure long-term financial stability for their families. • Key Leadership Insights: • HNB Life CEO Lasitha Wimalaratne emphasized the company's commitment to delivering specialized protection to address the evolving financial needs of the medical segment. • GMOA President Dr. Sanjeewa Tennekone highlighted that the initiative prioritizes the overall wellbeing and long-term financial security of their membership base.

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📈 Dialog Launches 'Dialog Pay' to Boost Sri Lanka's Digital Economy

• Overall Initiative: Dialog Axiata PLC has launched Dialog Pay, an integrated digital payment platform within the MyDialog App, rebranding its existing 'Genie' platform. The initiative supports the Government of Sri Lanka's Lanka QR Payment Promotion Programme to accelerate digital payment adoption and financial inclusion. • Ecosystem & Reach: The platform integrates into one of Sri Lanka's largest digitally enabled merchant ecosystems, enabling secure Lanka QR payments across more than 100,000 retail outlets, including supermarkets, restaurants, healthcare providers, and neighborhood businesses. • Financial Services & Features: Users can activate Dialog Pay via an eZ Cash account or by linking a bank account. Powered by Dialog Finance, the unified app allows customers to make LankaQR payments, transfer funds, access a digital wallet, open savings accounts/fixed deposits, and apply for loans. • Economic Impact: Aimed at advancing national digital transformation, the platform drives financial inclusion for both consumers and merchants. To incentivize early adoption and habit-building within the ICT/BPM and digital commerce space, Dialog is offering complimentary data rewards for eligible Lanka QR transactions.

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📈 Classic Destinations Concludes 4-City North India Roadshow

Leading Sri Lankan Destination Management Company (DMC), Classic Destinations, successfully concluded a strategic four-city roadshow across North India to strengthen bilateral tourism ties. • Key Highlights: • Target Markets: Conducted across Delhi, Chandigarh, Jalandhar, and Amritsar under the 'Classic Sri Lanka' banner. • Strategic Partnerships: Hosted by Chalaka Gajabahu (Head of Classic Destinations) and Rajiv Verma (India Consultant), in association with support partner SriLankan Airlines. • Core Objective: Conducted destination knowledge sessions and B2B networking to showcase Sri Lanka's hospitality infrastructure, emerging travel experiences, and connectivity. • Economic Context: • India remains one of Sri Lanka’s most critical source markets for tourism. • The initiative aims to drive regional business opportunities, enhance destination awareness, and boost Indian traveler arrivals to support national tourism growth.

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📲 Seylan Bank Launches Google Pay Integration for Cashless Payments

Seylan Bank PLC has integrated all Seylan Credit and Debit Cards with Google Pay, driving Sri Lanka's shift toward digital payment solutions. • Digital Payment Innovation: Android users can now make contactless, cardless transactions using their smartphones for retail, dining, commuting, and online purchases. • Strategic Partnerships: The integration is supported by global payment networks Visa and Mastercard, ensuring secure local and international acceptance. • Advanced Security: The system utilizes encrypted tokenization to protect transactions, replacing actual card details with digital tokens so sensitive data is never shared with merchants or stored on devices. • Economic Context: This launch aligns with the bank's broader strategy to support Sri Lanka's transition toward a digitally connected, cashless economy.

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Atlas Launches Sri Lanka's First SLS-Certified Water Bottle 🍼

• Atlas Axillia, Sri Lanka's leading learning brand, has introduced the country’s first SLS-certified plastic water bottle, expanding its portfolio into safety-assured school essentials. • The product has successfully cleared rigorous testing and evaluation to comply with the newly introduced national standard for plastic water bottles established by the Sri Lanka Standards Institution (SLSI). • The official launch took place at Cinnamon Grand Colombo, featuring regulatory authorities, healthcare professionals, and industry experts discussing the importance of national safety standards and consumer awareness. • This milestone marks a significant step for the local manufacturing and consumer goods sector, aiming to drive greater awareness around certified products and children's health and safety in Sri Lanka.

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📈 CA Sri Lanka Launches Flagship Leadership Academy & Governance Guidelines

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) has launched its CA Leadership Academy alongside four critical governance publications to strengthen board-level capability and advance professional governance standards. • The Leadership Academy: Offers two distinct structured training programs aimed at expanding executive skillset beyond technical expertise into strategic oversight, sharp judgment, and long-term value creation. - _Private Sector Program_: An 8-week corporate leadership course covering directors' responsibilities, digital oversight, and AI governance. - _State-Owned Enterprises (SOE) Program_: A 6-week board leadership course focused on public sector governance and value creation. • Key Governance Publications: Unveiled a coordinated suite of four reference guides addressing modern technological disruption, environmental impact, and public sector risk management: - Guidelines on AI for Finance Professionals - Guideline on IT Governance for Directors - Sustainability Governance Code - Action Plan for Combating Fraud in Public Sector Entities (developed in collaboration with the University of Kelaniya) • National Context: This initiative targets critical areas for Sri Lanka's economic stability, focusing on improving institutional accountability, advancing transparency, and mitigating fraud risks across both private and state-owned corporate ecosystems.

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Global & International Business

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📈 Developing Asia Leads Global FDI; South Asia Growth Driven by India

• Overall Figures: Developing Asia remained the world's largest foreign direct investment (FDI) destination in 2025, receiving US$ 644 Bn. This accounted for roughly 40% of global FDI and over 70% of total flows into developing economies, based on UNCTAD's World Investment Report 2026. • Subregional Shifts: While inflows declined in East Asia, they surged in South-East Asia, South Asia, West Asia, and Central Asia. South-East Asia emerged as the largest subregional recipient, while South Asia's growth was heavily driven by a 44% spike in FDI inflows into India. • Sector & Industry Focus: Global greenfield investments are rapidly shifting toward strategic sectors like semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing, and energy-transition technologies—together commanding 44% of global greenfield investment in 2025 (up from 16% five years ago). • Market Realities: Concentration remains high, with eight of the top ten developing-economy FDI recipients located in Asia, commanding over 80% of regional flows. High-value sectors continue to see shifts; China's inflows softened from US$ 116 Bn to US$ 105 Bn, though it retained strong commitments in high-value R&D and pharmaceutical manufacturing. • National & Policy Context: In an increasingly competitive landscape, policymakers must shift from mere incentives to improving investment facilitation, domestic supplier ecosystems, reliable energy, logistics, and workforce skills to effectively link FDI to industrial upgrading and employment.

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🍁 Canada-Sri Lanka Ties Strengthen as CanCham Marks 159th Confederation Anniversary

The Canadian Chamber of Commerce in Sri Lanka (CanCham Sri Lanka) celebrated Canada Day, highlighting a strong focus on trade, investment, and positioning Sri Lanka within Canada’s massive CAD 500 Bn, 10-year Indo-Pacific engagement strategy. • Bilateral & Regional Trade: Canadian High Commissioner Isabelle Martin noted rising investor interest in Sri Lanka following its economic recovery, emphasizing that chambers are vital to translating Indo-Pacific policies into practical economic partnerships. • Strategic Sector Focus: A dedicated panel addressed resilient value chains across energy, manufacturing, tourism, and technology/ICT. A newly drafted Five-Year Strategic Tourism Development Plan was presented, with finalization expected within 60 days to boost investment and marketing linkages. • Chamber Milestones & Future Plans: Established on December 21, 2025, CanCham has expanded via partnerships in global health and education. Upcoming initiatives later this year include: A business delegation to Toronto, Montreal, and Vancouver targeting real estate, fintech, education, and tourism. Launching scholarships for low-income students. A climate-focused sustainable development forum in early 2027.

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🤝 Sri Lanka & Pakistan Agree to Boost Bilateral Trade and Investment

Sri Lanka and Pakistan have reached an agreement to expand trade, promote investments, and enhance entrepreneurship cooperation following high-level discussions between Industries Minister Sunil Handunneththi and Pakistan High Commissioner Dr. Nayyar Naseer. • Key Trade Initiatives: Focused on reversing the recent decline in Sri Lankan tea exports to Pakistan. Efforts are also underway to remove trade barriers to fast-track the launch of Sri Lankan pineapple and avocado exports to the Pakistani market. • Technology & Sector Exchange: Agreed to launch technology exchange programs in the gem & jewellery sector via the National Gem and Jewellery Authority. • Entrepreneurship & Networking: Planned exchange programs through the Entrepreneurship Development Authority targeting Pakistan’s Punjab and Karachi regions. The Export Development Board (EDB) will also support a special business forum in Pakistan to connect Sri Lankan exporters directly with Pakistani buyers. • Investment Opportunities: Discussions highlighted plans to further scale up Pakistani investments specifically targeting Sri Lanka's pharmaceutical manufacturing sector.

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🤝 Sri Lanka Marks 75 Years of Colombo Plan with Commemorative Stamp

• Overview: The 75th anniversary of the Colombo Plan was celebrated on July 3, 2026, at the Galle Face Hotel, Colombo. The event was attended by Prime Minister Dr. Harini Amarasuriya and Foreign Affairs and Foreign Employment Deputy Minister Arun Hemachandra as the Guest of Honour. • Key Highlights: A commemorative stamp was unveiled to mark 7.5 decades of regional cooperation, enduring friendship, and shared development among member countries. • Economic & Social Impact: Deputy Minister Hemachandra emphasized the organization's long-standing contribution to human resource development, education, technical cooperation, and capacity building across the Asia-Pacific region. • National Context: Sri Lanka reaffirms its commitment to the Colombo Plan as a vital platform for international collaboration, fostering knowledge, skills, and people-centered development to enhance the prosperity of future generations.

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📈 Sri Lanka’s "Mahaweli Doctrine": Water & Foreign Policy for National Renaissance

An essay exploring Sri Lanka's historical hydraulic civilisation proposes using the Mahaweli Doctrine as a metaphor for modern multi-alignment diplomacy, economic connectivity, and domestic growth. • Core Philosophy: Proposes that water, commerce, and diplomacy are inseparable. Just as ancient rulers linked the Mahaweli River system to ports for regional trade, modern foreign policy must connect local villages to global markets rather than opting for isolation. • Historical Precedents: - King Parakramabahu I used surplus agricultural production from Polonnaruwa to boost trade through the Trincomalee harbor (Gokanna). - The ancient port of Mantai in Anuradhapura acted as a major hub for Indian, Persian, Arab, and Chinese trading networks. - The Kingdom of Kotte and the later Hamilton Canal connected inland producers (Negombo, Chilaw, Puttalam) to maritime commerce. • Strategic Framework: - Recommends a pragmatic strategy of multi-alignment rather than traditional non-alignment, building constructive ties with the US, China, India, Europe, Japan, ASEAN, the Middle East, and Africa. - Suggests utilizing the existing Grama Niladhari (village officer) network to align local production with national economic and foreign policy objectives. - Advocates for incorporating agriculture, tourism, education, technology, and entrepreneurship directly into the national diplomatic strategy.

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📈 EDB Hosts Regional Exporters’ Networking Forum in Chillaw

The Sri Lanka Export Development Board (EDB) convened the North Western and North Central Provinces Exporters’ Networking Forum in Chillaw to boost regional export capabilities and streamline supply chains. • Key Objective: Established a direct communication channel between regional exporters, policymakers, and government institutions to address challenges in customs procedures, legal/administrative frameworks, and market access. • Strategic Focus: Focused on strengthening the export sector by collecting new proposals, connecting rural producers with international market linkages, and building a more equitable export system. • Sector & Industry Context: While specific commodity figures were not disclosed, key regional agencies like the Coconut Development Authority participated, highlighting the focus on regional resource-based exports. • Stakeholder Engagement: Led by Industry and Entrepreneurship Development Minister Sunil Handunneththi, North Western Province Governor Tissa Kumarasiri Warnasuriya, and EDB Chairman Mangala Wijesinghe. Exporters engaged in direct problem-solving sessions with state bodies including Sri Lanka Customs and the Inland Revenue Department.

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🤝 Sri Lanka & China EXIM Bank Fast-Track Infrastructure & Development Talks

• Bilateral Infrastructure: A high-level delegation from the Export-Import Bank of China (China EXIM Bank), led by Vice President Ms. Yang Dongning, met with Sri Lanka's Deputy Minister of Finance and Planning, Dr. Anil Jayantha Fernando. • Central Expressway Progress: Discussions focused on expediting the amended Financing Agreement for the Central Expressway Project (CEP-1) - Section I (Kadawatha-Meerigama). The Sri Lankan government intends to finalize internal procedures and sign the amended agreement before the end of August 2026. • Economic Growth Strategy: Sri Lankan officials outlined a vision for sustainable growth by developing priority sectors. Key focus areas include tourism, value-added manufacturing tied to global value chains, logistics, energy, and information technology (IT) to drive innovation and export diversification. • Human Capital Development: The government highlighted plans to upgrade technical and vocational education to boost youth skills. In response, the Chinese delegation expressed willingness to support capacity-building initiatives and knowledge exchange between Chinese and Sri Lankan higher education institutions.

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📈 Sri Lanka-Germany Business Council Celebrates Members’ Day 2026

• Bilateral Ties: German Ambassador Dr. Felix Neumann reaffirmed Germany's long-standing economic cooperation, positioning Sri Lanka as a key, stable partner for free trade and a rules-based global order in the Indian Ocean region. • Key Growth Sectors: Significant economic and investment opportunities were identified in logistics, manufacturing, renewable energy, green technologies, digital transformation, and tourism. • Strategic Focus: The Ambassador emphasized the critical need for continuous trade facilitation, investment promotion, and digital ecosystem collaboration to connect businesses and reduce barriers. • Council Initiatives: SLGBC President Gerard Victoria reaffirmed the council's commitment to driving trade, tourism, and investment. For the upcoming year, the council announced a corporate social responsibility (CSR) initiative dedicated to supporting a local school with urgent infrastructure development.

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📈 EDB & Germany’s IPD Sign MoU to Boost SME & Women-Led Exports

The Sri Lanka Export Development Board (EDB) and the Import Promotion Desk (IPD) Germany have signed a Memorandum of Understanding (MoU) to renew their export development partnership, which has been active since 2019. • Strategic Focus Areas: The agreement establishes a renewed framework for trade promotion services, exporter development, institutional capacity building, business matchmaking, and the development of export-oriented women entrepreneurship. • Sector Impacts: The collaboration has already delivered notable outcomes in the Natural Ingredients sector through capacity-building programs, market intelligence, buyer linkages, and international trade fair participation. • Empowering Women Entrepreneurs: A key feature includes targeted support initiatives providing women-led enterprises enhanced opportunities to access global markets and value chains. • Operational Roles: IPD will continue providing technical expertise, training, consultancy, and European market access facilitation. The EDB will coordinate joint export development initiatives and drive engagement for export-oriented SMEs. This partnership aims to deepen economic ties between Sri Lanka and Europe, helping local SMEs meet international market requirements and build sustainable, long-term commercial relationships.

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🇳🇱 🇱🇰 Sri Lankan Cocopeat Companies Visit European Substrate Knowledge Centre

• Strategic Expansion: A delegation of Sri Lankan cocopeat and coir companies visited the RHP Knowledge Centre in the Netherlands on June 12, 2026. The initiative aims to align Sri Lankan exports with European quality standards, market requirements, and sector innovations. • Industry Stakeholders: The local delegation comprised key players including NB Coir, Marisha Coco Products, Green Space International, Eco Films, and Cocopeat Lanka. • Quality & Certification: RHP is the leading European knowledge centre for growing media, managing the critical RHP and RAG quality marks. Meeting these standards is essential for cocopeat products entering European markets, particularly the Netherlands. • Economic Impact: Access to RHP's laboratory and research into buffering treatment techniques—which improve coir performance and plant nutrition—is expected to drive value addition, enhance product competitiveness, and strengthen Sri Lanka's position in the global substrate industry.

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📈 Ja’pura Uni. & Port City Colombo Launch International Case Study on Economic Impact

The Faculty of Management Studies and Commerce at the University of Sri Jayewardenepura, in collaboration with CHEC Port City Colombo, has published an international academic case study analyzing the project’s strategic role in Sri Lanka’s economic future. • The Publication: Titled “Port City Colombo: Catalysing Sri Lanka’s Emergence as a Global Investment Hub,” the study was published by Nova Publishers, New York. It is featured as a chapter in the book “Is Sri Lanka Revitalising its Economy? An Analysis of Economic Policy and Technological Adoption.” • Economic Vision: The study analyzes Port City Colombo's transition into its operational phase as a Special Economic Zone. It examines how the project aims to shift Sri Lanka from a traditional tourism-and-export-dependent model toward a dynamic, service-oriented economy. • Key Focus Areas: It provides a multidisciplinary evaluation covering urban planning, real estate finance, strategic innovation, regulatory frameworks, environmental sustainability, and geopolitical implications. • Strategic Intent: The research serves as an academic and professional resource for policymakers, industry practitioners, and students to evaluate foreign direct investment and economic diversification. It aims to foster critical discussion on attracting new industries to support long-term national growth.

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📈 Govt Targets US$ 3 Bn Export Sector for Coconut & Food and Beverage

President Anura Kumara Dissanayake has held discussions with industrialists to expand the coconut and food and beverage export industries into a US$ 3 billion economy within the next two years. • Overall Goals: Transform the national economy into an export-oriented production model by strengthening domestic supply chains and supporting value-added diversification. • Sector Breakdowns: • Coconut-based export industry: Targeted to expand into a US$ 2 billion sector. • Food and beverage export industry: Targeted to reach US$ 1 billion. • Regional Initiatives: The government agreed to provide specific incentives to establish coconut-based manufacturing industries in the Northern Province. • Key Trade Balance Measures: Future policies will focus on streamlining raw material imports for export production while simultaneously safeguarding domestic producers.

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Awards & Recognitions

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📈 13th CFA Capital Market Awards Scheduled for September 2026

The flagship event by CFA Society Sri Lanka aims to recognize excellence and raise standards across the country's capital markets ecosystem. • Event Overview: The 13th edition of the Capital Market Awards will be held on 10 September 2026 at the Cinnamon Grand, Colombo. This year also marks the 25th anniversary of CFA Society Sri Lanka's contribution to the local financial sector. • Core Focus: The awards encourage continuous industry improvement, focusing on research timeliness, investor relevance, and emerging trends like AI, ESG, sustainability reporting, and digital finance. • Award Categories: Recognition will be given across five key areas: Best Equity Research Team, Best Equity Research Report, Best Sector Report, Best Investor Relations Team, and Best Unit Trust Team. • Local Context & Impact: Over the past 13 years, the initiative has served as a benchmark for corporate governance, market transparency, and professional standards. CFA Society Sri Lanka currently supports over 250 senior financial members and 500 candidates.

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🏆 Great Place To Work Unveils Best Workplaces in Sri Lanka for 2026

Great Place To Work has announced its 14th annual list of the 50 Best Workplaces in Sri Lanka, based on data collected between April 2025 and March 2026. • Study Scale & Scope: Surveyed over 80,000 employees (representing a 93,000 workforce) across 200 organizations spanning 20+ industries, achieving an 86% average response rate. • Performance & Key Drivers: The Top 50 recorded an average 91% positive employee perception, outperforming other surveyed firms by 11 percentage points. Key emotional drivers included fairness in pay and management acting as role models, while workplace politics and promotion fairness remain industry-wide challenges. • Methodology: Winners met a 70% minimum positive feedback threshold. Selection was based on the Trust Index Survey (75% weight) and a Culture Audit (25% weight). • Key Industry Winners by Category: - Large (500+ employees): Includes heavyweights in hospitality, apparel & textiles, and finance such as Hayleys Plantations, Hilton, Omega Line, AIA Insurance, and DIMO. - Medium (251-500 employees): Includes Lion Brewery, YKK Lanka, Expolanka Freight, and Janashakthi Insurance. - Small & Micro (up to 250 employees): Features ICT/BPM and tech-driven firms like BoardPAC, Gapstars, Uzabase, and SYNERGEN Technology Labs. • Next Steps: An official awards ceremony and regional conference will be hosted on September 10–11, 2026, at Cinnamon Life.

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🏆 Commercial Bank Makes History with 7 Wins at FinanceAsia Awards 2026

The Commercial Bank of Ceylon has secured an unprecedented seven accolades at the 30th FinanceAsia Awards held in Hong Kong, marking the biggest haul by any Sri Lankan bank. • Overall Achievement: Named the 'Best Bank in Sri Lanka' for the 15th consecutive year, evaluating performance in financial strength, strategic growth, and resilience during 2025. • Sector Breakdowns: Honored across six additional key areas of the financial spectrum: • Best Bank for SMEs (largest lender to the sector) • Best Bank for Use of Technology • Best Islamic Finance House • Best Sustainable Bank (Sri Lanka's first 100% carbon-neutral bank) • Best Private Bank • Best Retail Bank • Economic Context & Scale: Commercial Bank is the largest private sector lender in Sri Lanka and the first local bank to exceed a market capitalization of US$ 1 Bn. • Footprint: Operates over 270 local branches alongside the widest international footprint among Sri Lankan banks, including operations in Bangladesh, the Maldives, Myanmar, and the UAE.

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📈 LB Finance Tops K Seeds Finance Sector Rankings for Q4 FY25/26

LB Finance PLC has been named the best-performing finance company in Category 1 (asset base over Rs. 100 Bn) by K Seeds Investments for the quarter ending March 31, 2026. The ranking evaluated 29 listed Sri Lankan finance companies across 10 equally weighted KPIs. • Overall Environment: The quarter was marked by strong domestic recovery early on, driven by an accommodative monetary policy, low interest rates, and post-cyclone reconstruction credit demand. Sri Lanka's GDP growth accelerated to 5.1% YoY (up from 4.7% in the previous quarter). • Sector Impact: Lower rates expanded credit demand for small and medium-sized enterprises (SMEs) across leasing, vehicle financing, and personal loans, while non-performing loans (NPLs) saw a gradual reduction compared to previous crisis years. • Late-Quarter Shocks: The outbreak of the Iran war on February 28, 2026, disrupted shipping and spiked global crude oil prices. This triggered higher domestic fuel prices and pushed Colombo headline inflation (CCPI) up to 2.2% in March (from 1.6% in February), squeezing borrower repayment capacities and increasing operating costs. • Category Leader: Despite these mounting cost-pressures and compressed interest margins, LB Finance PLC outperformed its large-asset peers due to a resilient balance sheet and strong lending franchise, capturing the top rank.

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📱 Dialog Named Sri Lanka's Most Loved Service & Telecom Brand

• Brand Performance: Dialog Axiata PLC has been recognized as Sri Lanka’s "Most Loved Brand" in both the Service and Telecommunications sectors for the 3rd consecutive year, according to the LMD Brands Annual survey. • Survey Insights: The independent survey was conducted by PepperCube Consultants based on 400 nationwide reader responses evaluating trust, loyalty, and brand affinity. Dialog also ranked among the top Corporate Brands overall. • Socioeconomic Impact: Beyond telecommunications, the brand's digital ecosystem highlights include: • Govi Mithuru: An AI-driven agricultural advisory service supporting over 1,000,000 farmers. • Shishyadhara: A social initiative enabling subsidy distributions to over 450,000 underprivileged students. • Sustainability: Advancing its Net Zero 2050 target through renewable energy and solar-powered network infrastructure. • Other Accolades: Further cementing its local market position, Dialog was secured as the 'Service Brand of the Year' for the 5th time and 'Telecommunication Brand of the Year' for the 15th consecutive year at the SLIM-KANTAR People’s Awards 2026.

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🏆 New Anthoney’s Feeds Wins Big at NCQP 2026

Sri Lankan agri-food producer New Anthoney’s Feeds secured four Gold Awards and one Silver Award at the National Convention on Quality and Productivity (NCQP) 2026, succeeding in all five entered improvement projects. This marks an improvement from their double-Gold performance in 2025. • Performance & Recognition: The company competed in the largest-ever NCQP event, which evaluated 450 teams from over 100 organizations. Their 2025 wins previously qualified them for the International Convention on Quality Control Circles (ICQCC) in Taiwan. • Sector & Operations: New Anthoney’s Feeds is the feed manufacturing arm of New Anthoney’s Group, a leading integrated poultry & agriculture producer. The company remains the only poultry producer in Sri Lanka to raise chickens 100% antibiotic-free. • Supply Chain & Standards: Founded in 1986, the group now controls its entire supply chain (feed, hatchery, farm, processing, and retail). • Certifications & Global Backing: Holds FSSC 22000, ISO 22000, and GMP standards, and is the only local poultry firm with a GHG Verification Statement (ISO 14064-1:2018). The group was also named Best Exporter in the Processed Food Category at the 26th Presidential Export Awards and is backed by the World Bank’s International Finance Corporation (IFC).

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🔔 Kelaniya University's Finance Department Celebrates 15th Anniversary at CSE

The Department of Finance at the University of Kelaniya commemorated its 15th anniversary by ringing the Market Opening Bell on the Colombo Stock Exchange (CSE) trading floor, marking its contribution to developing Sri Lanka's financial sector talent. Key Milestones & Contributions: • Academic Growth: Established in 2011, the department now offers specialized honors degrees in Banking, Insurance, and Financial Engineering to cater to evolving corporate needs. • Global Recognition: The Bachelor's and Master's programs in Finance have secured prestigious CFA Institute affiliations, enhancing the global employability of graduates. • National Initiatives: Key achievements include setting up a Financial Literacy Centre (2022) and establishing a strategic partnership with the Central Bank of Sri Lanka (2025) to boost national financial literacy. • Industry Collaboration: Collaborating with top firms like KPMG Sri Lanka and First Capital Asset Management to deliver professional programs in investment analysis and fund management. The partnership between academic institutions and the CSE remains vital in nurturing ethical, knowledgeable professionals to support Sri Lanka's capital market ecosystem.

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Browns Secures Sri Lanka’s First SLSI Overseas Manufacturing Authorisation for Motorcycle Battery Imports 📈

• Automotive Sector Milestone: Browns has become the first entity in Sri Lanka to receive the Overseas Manufacturing Authorisation from the Sri Lanka Standards Institution (SLSI) for importing motorcycle batteries under the Yoshido brand. • Quality Assurance: The authorisation was granted following a comprehensive audit of the overseas manufacturing facility by SLSI, confirming compliance with local performance and environmental standards. • Market Position: Yoshido offers Sri Lanka's largest motorcycle battery range with 13 distinct battery types, ensuring compatibility with virtually every motorcycle model on local roads. • Corporate Context: Established in 1875, Browns is a prominent diversified conglomerate in Sri Lanka with operations spanning automotive, agriculture & plantations, power generation, manufacturing, and pharmaceuticals.

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🏆 CEAT Kelani Wins ‘Best Tyre Manufacturer’ at Inaugural Automobile Industry Awards

• Top Recognition: CEAT Kelani Holdings was named the Best Tyre Manufacturer in the ‘Component Manufacturer’ category at Sri Lanka's first-ever Automobile Industry Awards, organized by the Automobile Industry Council (AIC). • Market Dominance: The company commands a dominant position in the Original Equipment (OE) segment, supplying tyres for more than 90% of all vehicles assembled in Sri Lanka. It supplies over 150,000 OE tyres annually across 30+ locally assembled models spanning 11 global brands. • Global Standards: CEAT Kelani is the first tyre manufacturer in Sri Lanka to achieve the IATF 16949:2016 certification, a globally recognized automotive quality standard required by international automotive OEMs. • Economic Impact: Beyond the manufacturing sector, the company actively aids the national economy via import substitution, conserving valuable foreign exchange. Additionally, it sources 100% of its natural rubber requirements domestically, supporting more than 10,000 local rubber cultivator families.

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🏆 Sampath Bank Clinches Three Top Titles at World Finance Banking Awards 2026

Sri Lanka's Sampath Bank PLC has secured major international recognition at the UK-based World Finance Banking Awards 2026, underlining its market resilience and leadership in the banking & financial services sector. Key Achievements: • Sustained Excellence: Named Sri Lanka’s 'Best Retail Bank' and 'Best Commercial Bank' for the 12th consecutive year, highlighting long-term consistency in driving customer value and supporting local business growth. • Governance Milestone: Awarded 'Best Corporate Governance – Sri Lanka 2026', reflecting the bank's integration of robust Board oversight, ethical leadership, and proactive risk management frameworks. National Context & Impact: • Digital & Economic Growth: The accolades recognize over a decade of continuous performance, digital capability expansion, and customer-focused financial solutions contributing directly to national economic development. • Institutional Strength: The awards build on past major honors, including being named Asia’s Best Bank for Corporate Responsibility (2024) and Sri Lanka’s Best Bank for ESG (2025) by Euromoney, solidifying its position as a key employment and financial anchor in Sri Lanka.

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🏆 Sri Lankan Entrepreneur Marlon Ferreira Named Finalist in Prestigious UK Awards

• Overview: Sri Lankan-born entrepreneur Denham Marlon Ferreira has been shortlisted for the 2026 Great British Entrepreneur Awards (Allica Bank) in the Global Entrepreneur of the Year category. Known as the "Grammys of Entrepreneurship," the awards drew over 5,000 UK applications. The selected national finalists collectively generate £3.3 Bn in turnover and employ over 17,700 people. • Business Breakdown: Ferreira is the founder and Managing Director of Sentario UK Ltd. and the founder of Exterminators PLC, recognized as Asia's first publicly listed specialist pest management company. • Tech & Innovation Focus: Moving to the UK in 2023, his recent ventures bridge environmental services with the ICT/BPM sector, developing advanced AI and environmental intelligence platforms. Key innovations include: MACCP X™: An AI-powered Mosquito Intelligence Platform. PACCP X™: An AI-augmented preventive pest management model. AI Report Factory™: An automated business intelligence reporting tool. • Next Steps: Final winners will be announced at the national awards ceremony in London later this year.

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### 📈 Amangalla Named Among World’s Top 100 Luxury Hotels

Sri Lanka’s iconic hospitality & tourism sector achieves global recognition as Amangalla, located in the historic Galle Fort, secures the 64th position on Travel And Tour World’s (TTW) prestigious "Top 100 Luxury Hotels in the World" list for 2026. • Recognition: The property was selected for its exceptional blend of colonial heritage, personalized service, and authentic cultural immersion. • Key Features: Judges highlighted the seamless integration of centuries-old architecture with modern luxury, fine dining, and holistic wellness experiences. • National Impact: Such international accolades continue to bolster Sri Lanka’s profile as a high-end destination, supporting the growth of the luxury travel market and the preservation of national heritage. This ranking underscores the industry's shift toward offering travellers deeper, more transformative experiences while driving value within the local tourism economy.

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Sustainability, ESG & Corporate Responsibility

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From Discarded Fish Waste to Dollar Earnings 📈

A BOI-approved venture, Yesol Lanka in Puttalam, is transforming local environmental waste into an export success story, turning discarded fish-processing by-products into premium animal feed ingredients. • Investment & Operations: Backed by a US$ 3 million investment on a 50-acre site in Madurankuliya, processing up to 100 metric tons of fish waste daily. It pays local fishermen and waste collectors Rs. 20–30 per kg for raw materials. • Export Earnings: Generates US$ 2 million to US$ 2.5 million annually by exporting 30,000 to 35,000 metric tons of fishmeal, fish oil, and fish paste. A key buyer includes CP Company of Vietnam, a global leader in shrimp farming. • Employment & Environment: Directly employs 45 people alongside extensive indirect jobs. The factory has achieved 100% Green Project status by using recyclable IBC boxes and plastic pallets. • Market Potential: The venture capitalizes on the global fishmeal and fish oil market, valued at US$ 9.9 billion in 2026. While Sri Lanka lands 480,000 to 530,000 metric tons of fish annually, it currently exports less than 3% as processed marine ingredients, signaling massive room for sector growth and economic diversification.

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Sri Lanka’s EcoBonus Proposal: Turning Plastic Waste into Economic Value 📈

• The Concept: A proposed EcoBonus-Driven PET Bottle Recycling Ecosystem aims to transform Sri Lanka's plastic pollution crisis into a circular economy model. Citizens depositing PET bottles at designated hubs receive digital wallet credits redeemable for utilities, retail discounts, or transport benefits. • Infrastructure & Scaling: Inspired by a practical 800 kg/hour semi-automated PET facility model in Tajikistan, the framework advocates for a decentralized network of regional aggregation centers rather than massive centralized plants. This model lowers transportation costs and boosts efficiency. • Three-Stage Value Chain: 1. Community collection and digital reward issuance. 2. Regional aggregation centers for sorting and cleaning. 3. Processing facilities converting bottles into high-quality PET flakes for packaging materials, apparel & textiles, and industrial products. • Economic Impacts: The initiative aims to drive job creation across collection and technology platforms, reduce dependence on imported raw materials to conserve foreign exchange reserves, and position Sri Lanka as a regional exporter of certified recycled PET products to build green economy credentials. • Social & Environmental Goals: Promotes behavioral change via digital reward gamification for youth and schools, provides supplementary income for low-income households, and reduces plastic leakage into rivers and marine ecosystems to protect fisheries and tourism.

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Workplace Inclusion Gap: Presence vs. Power in Sri Lankan Corporations 📈

A new UN Women and MAS Holdings study highlights that while Sri Lanka’s female political and board representation is rising, a severe gap remains in transforming this presence into leadership authority within the national workforce. • Overall Labor Dynamics: Women constitute over 50% of Sri Lanka's population but represent only 31.3% of the active labor force. This stagnation persists despite the country's high female literacy and strong human development indicators. • The Seniority Squeeze: Workforce representation drops drastically along the corporate ladder. While women comprise roughly 40% of entry-level positions, they account for only 20% of senior management roles. • Institutional & Board Breakdown: • Listed company board seats held by women surged from 8.4% in 2024 to ~30% in 2025. • Local government female representation rose from 2% to 22%. • Parliamentary seats held by women stand at just 9.8%. • Sector & Structural Barriers: Despite massive female employment in key drivers like the apparel & textiles sector, progression into ultimate decision-making remains restricted. Leadership in high-authority domains like finance, infrastructure, and civil engineering continues to be heavily male-dominated, influenced by deep-seated regional gender norms. _Note: Data based on the Country Gender Equality Profile: Sri Lanka (2026)._

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📈 Biodigesters: A Local Solution to Sri Lanka’s Food, Energy & Climate Challenges

A pilot model by Solidaridad and Nucleus Foundation highlights how farm-gate biodigesters can tackle import dependence and climate risks by turning waste into valuable energy and nutrients. • Overall Impact & Savings A single rural dairy household (5-6 people, 3-4 cows, 2 acres) can save approximately Rs. 252,000 annually by replacing LPG and chemical fertilisers. If scaled to 50,000 households, Rs. 10 Bn to Rs. 12.5 Bn could be retained annually within rural economies. • Sector Breakdown & Resource Shift Energy: Over 78% of national households (84% in rural areas) still rely on firewood for cooking. Biodigesters pipe local biogas directly to stoves, reducing expensive LPG imports. Agriculture & Fertiliser: Bio-slurry from digesters can replace 70% to 80% of chemical fertiliser use under specific conditions, improving soil organic matter without a forced organic-only mandate. Dairy: Harnesses existing livestock resources, with average pilot farm dung production estimated at 80 to 100 kg daily. • National Context & Economic Pressures Based on Central Bank data, total merchandise imports reached US$ 21.5 Bn in 2025, with fuel remaining the largest component at US$ 4 Bn. Heavy foreign exchange leakage persists across imported dairy products, chemical fertilisers, and agricultural inputs. • Carbon Financing & Policy Recommendations Carbon finance can offset upfront equipment costs, potentially making systems free for farmers. Sri Lanka can leverage its October 2022 Joint Crediting Mechanism (JCM) with Japan to secure carbon credits. Experts recommend bringing customs duties on biodigester components to zero and adopting an 80:20 carbon benefit-sharing split to attract private investors. _Note: Financial and substitution figures are indicative estimates based on 2025-2026 provisional pilot data._

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UN Global Compact Hosts CATALYZE 2026 for Sustainable Business Transformation 📈

The UN Global Compact Network Sri Lanka hosted CATALYZE 2026 over two days to drive environmental and social sustainability across corporate strategies and accelerate national economic competitiveness. Key Highlights: • Focus Pillars: Aligned with the UN Global Compact’s 2026–2030 Strategy to equip and advance corporate action in net-zero strategies, science-based targets, circularity, and energy security. • Climate Action: Industry experts focused on unlocking finance for industrial decarbonisation, shifting to low-carbon systems, and mapping risks using Taskforce on Nature-related Financial Disclosures (TNFD) guidelines. • Resilience & Communication: Plenaries covered business continuity under climate risks and strategic storytelling to enhance stakeholder trust. • Strategic Backing: Partnered with Deloitte, Anvarta PTY Ltd, and Sampath Bank PLC. Key national sectors like tea and apparel & textiles were heavily represented via patrons including Talawakelle Tea Estates PLC, Hirdaramani Group, Kelani Valley Plantations PLC, Dilmah Ceylon Tea Company PLC, and Teejay Lanka PLC.

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🌱 Hayleys Solar Powers Colombo Med Faculty with 90 kW Rooftop System

Hayleys Solar, the renewable energy arm of Hayleys Fentons Ltd., has officially handed over a 90 kW rooftop solar power system to the Faculty of Medicine, University of Colombo, to boost clean energy integration in higher education. • Project Scope: A 90 kW rooftop solar PV installation initiated by the faculty's Old Boys’ Association, highlighting the impact of alumni-driven institutional development. • Economic & Environmental Impact: The system will supply a substantial portion of the faculty's daily energy needs, lowering operational energy costs, reducing reliance on the conventional grid, and cutting greenhouse gas emissions. • National Context: Aligns with Sri Lanka's broader transition toward sustainability and renewable energy adoption across key public sectors. • Market Position: Hayleys Solar has completed over 500 MWp of solar installations island-wide by the end of 2025, maintaining its position in the domestic solar Engineering, Procurement, and Construction (EPC) segment.

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📢 UN Global Compact Mobilizes Sri Lankan Private Sector at CATALYZE 2026

The UN Global Compact Network Sri Lanka convened "CATALYZE 2026: Social" to drive social sustainability, workforce transformation, and ethical governance across local industries. • Core Objective: Move corporate Sri Lanka beyond sustainability commitments toward active implementation. The event emphasized that global market competitiveness relies on being the "most trusted" producer rather than the cheapest. • Sector & Industry Focus: Major players from Sri Lanka's critical apparel & textiles sector (including Brandix Apparel, MAS Holdings, and Hirdaramani Apparel) alongside top banking institutions (Commercial Bank, Sampath Bank, HNB) backed the initiative, reflecting a unified push to integrate human rights, workforce resilience, and inclusive workplaces into national supply chains. • Key Themes: Discussions focused on anti-corruption, neurodiversity, artificial intelligence's impact on jobs, and the Women's Empowerment Principles (WEPs) to bolster long-term corporate resilience. • Structure: The event was part of a two-day twin edition; CATALYZE Social (held June 24) addressed the human dimension of business, while CATALYZE Environment (held June 25) tackled climate action and resource stewardship.

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📈 Ceylon Chamber Hosts Vital Dialogue on Sri Lanka’s Energy Transition

The Ceylon Chamber of Commerce convened public and private sector leaders, academics, and industry experts for a strategic discussion titled “Energy Transition in Sri Lanka: Strategic Insights from Global Markets,” framing renewable energy as a critical pillar for national energy security and economic competitiveness. • Strategic Focus: The dialogue centered on shifting toward cleaner, technology-driven energy systems to drive industrial growth, enhance national resilience, and meet the high-power demands of digital transformation (including AI, data centers, and electric mobility). • Key Priorities Discussed: Regulatory frameworks, electricity sector reforms, grid modernization, and financing models. • Standards & Safety: Experts emphasized that establishing clear technical and safety standards is essential to protect consumers and businesses as national solar and energy storage adoption scales up. • Next Steps: Moving forward, the Ceylon Chamber will collaborate with government and industry stakeholders to develop evidence-based policy recommendations to boost investor confidence and support long-term economic progress.

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Agronomic Realities vs. Myths: Evaluating Oil Palm Cultivation in Sri Lanka 📈

• Land Use & Context: _Oil palm_ occupies ~10,400 hectares in the wet zone low country. Cultivation is confined to degraded or marginal lands previously used for tea or rubber, causing zero natural forest deforestation. • Soil & Erosion Facts: The region's acidic, low-fertility Red Yellow Podzolic soils are inherent to the wet zone, not caused by oil palm. Erosion rates depend on land management rather than the crop. Standard practices like cover cropping, mulching, and contour planting effectively control soil loss. • Nutrient & Fertilizer Efficiency: On a per-unit-area basis, oil palm's macronutrient needs are comparable to coconut and lower than tea. Crucially, oil palm achieves the highest yield per unit of nutrient applied among major plantation crops. Returning biomass (pruned fronds and empty fruit bunches) to the soil enhances organic carbon and minimizes soil acidification. • Biodiversity & Water Consumption: Studies at local estates show understory vegetation diversity and earthworm densities in oil palm fields are comparable to or higher than rubber stands. Per hectare, oil palm consumes ~34,480 liters of water daily, closely matching rubber (~32,760 liters). In recommended areas with >2,500 mm annual rainfall, the crop utilizes under 35% of total annual precipitation. • Sustainability & Waste: Local processing facilities, such as the AEN factory, utilize advanced technologies to achieve zero-waste generation. Experts advocate shifting public discourse toward measurable global sustainability frameworks like the Roundtable on Sustainable Palm Oil (RSPO) certification, which several Sri Lankan plantation companies already maintain.

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Sajith Calls for National Climate Strategy Ahead of El Niño 🌍

Opposition Leader Sajith Premadasa has urged the National Council for Disaster Management to adopt a science-based, whole-of-government approach to climate resilience, warning of a limited window to prepare for the 2026-2027 El Niño cycle. • Anticipated Climate Impact: Global scientific assessments suggest the upcoming El Niño could rank among the strongest in decades, risking "climate whiplash" characterized by prolonged droughts followed by severe flooding. • Economic & National Security: The proposal emphasizes that climate resilience is directly linked to economic stability, heavily affecting vital sectors such as agriculture, water security, energy, public health, infrastructure, and fiscal stability. • Strategic Proposals: Key recommendations include transitioning to anticipatory governance driven by forecasting, expanding disaster risk financing, and establishing a National Climate Risk and Disaster Intelligence Centre. • Long-Term Policy: Premadasa proposed a Presidential White Paper on National Climate Resilience to ensure a policy framework that outlasts successive administrations, drawing on international best practices from India and Australia.

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New Initiative: Linking Rehabilitated Youth to Private Sector Jobs 📈

The Ministry of Industries and Entrepreneurship Development has officially launched a programme aimed at integrating youth who have completed drug rehabilitation into the national workforce. • Objective: To facilitate permanent _private-sector employment_ for rehabilitated individuals. • Strategic Focus: By transitioning these individuals into formal industry roles, the initiative aims to support social reintegration while filling labor needs within the private sector. • Implementation: The Ministry is acting as the primary coordinator to bridge the gap between rehabilitated youth and potential employers, emphasizing sustainable career pathways. This programme highlights a proactive approach to human capital development and industrial workforce expansion.

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Poson Lessons: Navigating a BANI World 📈

• Economic & Political Context: Sri Lanka exemplifies the global BANI framework (Brittle, Anxious, Non-Linear, Incomprehensible). The nation continues a challenging transition from pandemic disruptions to deeper economic and institutional instability, requiring long-term systemic thinking. • National Challenges: • Healthcare & Welfare: High mass anxiety persists due to unstable supplies and exorbitant prices of vital drugs. • Infrastructure: Post-recovery delays following Cyclone Ditwah highlight unpredictable, non-linear operational bottlenecks causing public frustration. • Governance & Expertise: Systemic structural flaws are exacerbated by political misaligned priorities and failed economic interventions by non-performing experts. • BANI 2.0 Strategic Blueprint: To foster long-term national resilience, the local ecosystem must pivot from passive illusions to targeted ignitions: • Bold: Commit completely to calculated, risk-assessed turnaround strategies. • Assertive: Establish authentic, clear communication lines across leadership roles. • Neutral: Drive objective, unbiased policy actions to safeguard macroeconomic stability. • Innovative: Catalyze development across critical industrial and service frameworks. • Sustainability & Leadership: Drawing from the historical context of Poson, national and institutional leaders must shift governance from an "owner" mindset to a "trustee" model, prioritizing ecological preservation and sustainable resource utilization over short-term consumption.

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Industry & Sector News

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IFT 2026: Preparing Educators for an Unpredictable World 🎓

The 8th International Forum for Teachers (IFT) is scheduled for July 25, 2026, at the BMICH, Colombo. Organized by Gateway Graduate School alongside Flinders University (Australia) and OxfordAQA, the forum focuses on upgrading skills for educators across state, private, and international schools. • Core Theme: "From Knowing to Being: Preparing for a World Yet to Be Defined." The event targets curriculum adaptation, resilience, and critical thinking to navigate a rapidly evolving landscape. • Key Focus Areas: • Developing student adaptability and decision-making in changing contexts. • Managing technology & AI integration mindfully and ethically within classrooms. • Building emotional strength and problem-solving capabilities in learners. • Speakers & Panelists: Features global experts including Dr. Carl Salt (Flinders University), Penny Butterworth (OxfordAQA), and world public speaking champion Dananjaya Hettiarachchi. Panelists include regional leads from Microsoft and local entrepreneurs discussing future-ready leadership and digital transformation. • Impact: The initiative directly supports Sri Lanka's ICT/BPM and knowledge-services ecosystem by training teachers to foster workplace readiness and youth empowerment.

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📰 SLIMFA Media Fest 2026 Returns to Colombo to Address Media Sustainability

The Sri Lanka-India Media Friendship Association (SLIMFA) will host the second edition of the Media Fest on Saturday, 11 July 2026, at the Taj Samudra Colombo. The full-day event (9:00 a.m. to 5:00 p.m.) centers on the theme "Staying Relevant in a Changing World." • Key Focus Areas: Discussions will target rapid technological, economic, and audience shifts impacting the media and communication landscape. Core thematic tracks include building credibility, AI integration, holistic revenue strategies, and the structural shift toward digital video and independent content creators. • Cross-Border Collaboration: The festival features prominent cross-border insights aimed at boosting bilateral ties, including keynotes from Indian media executives such as Smita Prakash (ANI Chief Editor) and Marya Shakil (India Today Managing Editor), alongside leading Sri Lankan industry experts. • Industry Impact: Designed for journalists, broadcasters, and digital creators, the event directly addresses the future sustainability of journalism and digital transformation—critical pillars for public trust and employment within Sri Lanka's evolving ICT/BPM and media ecosystem. _Note: Limited seating is available; registration is required via the official portal._

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🏗️ INFRACON 2026 Opens at BMICH to Boost Regional Infrastructure Ties

• Event Overview: INFRACON 2026, Sri Lanka’s premier infrastructure and construction exhibition, opened yesterday at the BMICH in Colombo and concludes this Sunday. Organised by LECS in collaboration with SAVOR International (Bangladesh), it aims to drive trade, investment, and technological advancement. • Sector Breakdowns: The exhibition showcases exhibitors and suppliers across 5 key pillars critical to modernization and employment: - HVAC-R & Cold Chain - Power & Energy - Green Energy - Safe Water Management - Building Materials • Key Participants & Markets: Features international participants from China, India, Pakistan, and Bangladesh, positioning Sri Lanka as a regional MICE (Meetings, Incentives, Conferences, and Exhibitions) destination. Target audience includes developers, contractors, engineers, architects, and policymakers. • Industry Endorsements: Endorsed by the Sri Lankan Chapter of ASHRAE and the Solar Industries Association (SIA). Key corporate partners include C.W. Mackie PLC (Gold Sponsor), AE Solar, Brantel Lanka Ltd., and Phoenix Super PVC. • B2B Features: Designed as a business-focused platform facilitating direct stakeholder interactions, supplemented by a dedicated online platform for virtual networking and international trade buyers.

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📈 Sri Lanka Launches Major Influencer Tour to Boost Global Tourism Presence

The Sri Lanka Tourism Promotion Bureau (SLTPB), in collaboration with the private tourism sector, has launched an international influencer familiarization tour running from July 6th to July 17th, 2026. The initiative targets high-impact digital marketing to strengthen the tourism sector, a critical driver for national employment and foreign exchange. • Campaign Overview: Digital content creators from Australia and Indonesia will tour key destinations including Negombo, Dambulla, Pasikudah, Kandy, Nuwara Eliya, Ella, Yala, Galle, and Colombo to showcase the island's diverse offerings. • Audience & Reach Breakdown: • Ondreaz Lopez: The group's most followed creator, commanding 19.8 Mn followers on TikTok and 3.1 Mn on Instagram. • Australian Contingent: Includes Alec Golinger (210K Instagram; 155.7K TikTok), Jessica Stevens (235.9K TikTok), Ben Mackay (215K Instagram), Maddison Lambert (218.9K TikTok), Shannon Thomson, and Olivia Jade Thomson (191K Instagram). • Indonesian Market Focus: Represented by Masniari Rizky Putri Pasaribu (219K Instagram; 123.1K TikTok), aiming to diversify arrivals by penetrating the Southeast Asian travel and culinary market. • Strategic Impact: Based on provisional event data, the campaign leverages public-private partnerships—with local hotels, transport operators, and service providers—to generate authentic digital storytelling across TikTok, Instagram, and YouTube, aiming to capture millions of potential travelers worldwide.

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📉 June Records Lowest Tourist Arrivals of 2026 as Indian Market Softens

Sri Lanka’s tourism sector hit its lowest monthly inflow for the year in June 2026, driven primarily by a sharp drop in Indian travellers, according to provisional data from the SLTDA. • Overall Performance: June arrivals fell 10% YoY to 124,551 (down from 138,241 in June 2025). This also marks a 15% decline compared to May 2026. Average daily arrivals dropped to 4,152 against 4,608 last year. • Year-to-Date (YTD): Cumulative arrivals for 2026 reached over 1.14 Mn. However, the industry remains 1.8% below the 1.16 Mn arrivals recorded during the same period last year, trailing its previous growth trajectory. • Top Source Markets (June): • India: Remained the top feeder market with 43,423 arrivals (35% share), but suffered a sharp 28% MoM decline from May's 60,342. • United Kingdom: 10,474 visitors (8% share). • Australia: 8,710 visitors (7% share). • China: 8,224 visitors (7% share). • YTD Market Share: India continues to dominate overall 2026 arrivals with 293,683 visitors (26%), followed by the UK at 108,567 (9%) and Russia at 77,349 (7%). The slowdown underscores the critical need for Sri Lanka to sustain demand in its primary source markets to maintain momentum toward its annual targets.

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🤖 Sri Lanka Leads National Dialogue on Ethical AI in Media

South Asian Women in Media – Sri Lanka (SAWM - SL) has convened a landmark roundtable to discuss trilingual draft guidelines (Sinhala, Tamil, and English) for the ethical use of Artificial Intelligence (AI) in journalism. Supported by the Embassy of the Kingdom of the Netherlands, this concludes the nation's first dedicated initiative on AI literacy, safety, and governance for women journalists. • Core Principles & Human Control: The framework establishes that human editorial judgment must remain paramount. While AI can assist with tasks like translation, research, and transcription, final editorial responsibility rests entirely with qualified human editors. • Disclosure & Language Guardrails: Proposes a two-tier disclosure system where content substantially generated or altered by AI must be clearly disclosed to audiences. Given current technical limitations in Sinhala and Tamil, the guidelines mandate stricter verification standards for local languages, treating all AI-generated output as unverified material until rigorously reviewed. • Institutional Framework: Recommends establishing an independent, gender-balanced AI Ethics Review Panel comprising journalists, AI researchers, digital rights advocates, and local language tech specialists, ensuring representation from outside Colombo. • Inclusive Compliance: Recognizes varying capacities among media houses, offering proportionate compliance measures so smaller and provincial newsrooms can meet auditing requirements via collaborative industry support. The draft will be revised based on stakeholder feedback before being finalized for broader industry adoption.

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TEA Urges Government Aid for Tea Smallholders to Boost Production 📈

• Tea Exporters Association (TEA) met with President Anura Kumara Dissanayake to address a critical drop in Sri Lanka's tea crop and discuss solutions for the export sector. • Production Slump: Annual tea production declined from 340 million kg in 2013 to 261 million kg by 2025. This drop restricts potential exports (exporters can handle 400 million kg annually) and stagnates export revenue at around US$ 1.5 Bn per year. • Smallholder Crisis: Over 480,000 tea smallholder farmers account for 75% of the national crop. Following consecutive policy crises (glyphosate and agrochemical bans), productivity plunged to ~150 kg of green leaf per acre per month, against a 600 kg potential, capping average monthly farmer income at ~Rs. 23,000. • The Infilling Solution: Most smallholders have under 3,000 plants per acre instead of the optimal 5,000. TEA proposed a state/bank-backed loan or grant scheme to fund a one-time "infilling" cost of Rs. 200 per plant. • Economic Impact: Post-infilling (after 2 years), a single plant can generate over Rs. 450/year for the farmer and over Rs. 850/year in foreign exchange for Sri Lanka for up to 30 years. • State Response: The President committed government support to enhance tea production, highlighting its importance for national economic recovery and stabilization.

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📉 Fuel Crisis & The LRT: Sri Lanka's Costly Missed Opportunity

A critical analysis highlights how reviving the Colombo Light Rail Transit (LRT) is vital for Sri Lanka’s energy security and economic resilience. Overall Figures & Vulnerabilities • Fuel Import Strain: Sri Lanka spent approx. US$ 3.8 Bn on fuel imports in 2025, heavily impacting foreign exchange reserves. • Road Dependency: Around 93% of land transport relies on roads, leaving the economy highly vulnerable to global energy shocks. • GDP Concentration: The Western Province generates over 40% of national GDP, making its gridlocked mobility a major drag on national productivity. Why the LRT Matters • Energy Shift: The system was designed to run on electricity, shifting thousands of commuters away from petroleum-based transport. • Key Benefits: Direct reduction in fuel imports, minimized traffic congestion, lower carbon emissions, and shortened travel times (e.g., Malabe to Colombo Fort in 30 minutes). • Favorable Terms Lost: The cancelled Japanese loan featured a highly concessional 0.1% interest rate, a 40-year repayment period, and a 12-year grace period. Recommended Way Forward • Re-engage Partners: Reopen discussions with Japan and JICA to revive financing, leveraging completed feasibility and technical designs. • Strategic Integration: View the LRT as an energy security investment rather than just transport, aligning it with local renewable energy (solar/wind) expansion. • Network Connectivity: Integrate the rail with buses, existing railways, and park-and-ride facilities for a seamless public transport system.

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Health Ministry to Invest Rs. 1.95 Bn in 11 Advanced CT Scanners 🏥

• Overall Investment: The Ministry of Health and Mass Media is investing Rs. 1.95 billion to procure and install 11 advanced Computed Tomography (CT) scanners in hospitals across Sri Lanka. • Strategic Impact: This major healthcare infrastructure upgrade aims to significantly strengthen national diagnostic services, particularly for critical care and emergency services. • Targeted Medical Areas: The advanced scanners will directly support clinical diagnoses and treatment planning for major health burdens, including strokes, cancer, heart disease, trauma, and emergency care.

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📈 Govt. Adopts "Ceylon Tea Village" Model to Target US$ 2.5 Bn Revenue

• Strategic Goal: The Sri Lankan government is restructuring the smallholder tea sector to boost productivity, value addition, and export earnings, targeting US$ 2.5 Bn in annual revenue by 2030. • Production Target: The initiative aims to lift finished tea production to 400 million kilograms while improving farmer incomes and premium global positioning. • Implementation: Executed by the TSHDA, TRI, SLTB, and NPMI, the program will launch on 15 July 2026. It starts with 144 cluster villages across 14 districts, eventually expanding to 500 countrywide. • Key Focus: The model integrates modern cultivation, infrastructure, and cooperatives to fix structural weaknesses like low yields. It will also promote tea-linked tourism and branded, value-added products to shift away from bulk commodity exports.

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🌿 Sri Lanka Tops Global Wellness Travel Trends for 2026

Sri Lanka has been ranked the world’s fastest-growing wellness travel destination for 2026, driven by a major shift toward health, mindfulness, and rejuvenation over conventional leisure holidays. Key Insights from the "State of Retreats 2026" Report: • Surging Demand: Sri Lanka recorded a phenomenal 100% increase in global demand, leading all other international destinations in the wellness sector. • Consumer Spending Shift: A survey of 1,040 US travellers revealed that 49% plan to prioritize spending on wellness retreats in 2026 over spa treatments, dietary supplements, and gym memberships. • Economic Potential: The findings position Sri Lanka’s tourism sector—a critical pillar for national employment and foreign exchange—to capitalised heavily on the lucrative, rising global demand for holistic travel experiences.

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⚡ Smart Grids Driving Sri Lanka's 70% Renewable Energy Goal by 2030

Sri Lanka is rapidly transforming its energy infrastructure by integrating smart grid technology to optimize solar and wind power, targeting 70% of electricity generation from renewable sources by 2030. • Renewable Capacity: Heavy investments include the 100 MW Kandalama Solar Park and the 100 MW Phase I of the Mannar Wind Farm to leverage the island's natural resources. • Grid Optimization: The integration of ICT/BPM and digital tech enables real-time monitoring via Advanced Metering Infrastructure (AMI), enhancing grid stability, cutting energy losses, and preventing blackouts caused by intermittent renewable supply. • Key Initiatives: The Ceylon Electricity Board (CEB) is executing a Smart Grid Pilot Project alongside the National Renewable Energy Grid Integration Plan, backed by technical and financial funding from the ADB and World Bank. • Economic & Environmental Impact: The shift reduces fossil fuel reliance and greenhouse emissions while lowering operational costs for energy providers. The expansion is also driving economic growth by drawing investments and creating new jobs in the local power and energy sector.

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Market News

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📈 Global Markets Wobble on Mideast Hostilities and AI Jitters

A resurgence in Middle East fighting and renewed U.S. sanctions on Iranian oil have disrupted global markets, driving energy costs up while pulling bond and equity markets down. • Energy & Inflation Risk: Brent crude futures climbed 2% to US$ 75.60 a barrel. While below historic war peaks, the rise creates immediate inflation risks for oil-importing nations, worsened by U.S. Strategic Petroleum Reserve stocks hitting their lowest levels since 1983. • Bond Market Pressures: Ten-year U.S. Treasury yields rose 3 basis points to a one-month high of 4.565% as investors factor back in a geopolitical risk premium. • Currencies: The U.S. dollar remained firm, pushing the Euro back to US$ 1.14 and climbing past 162 Yen, increasing the likelihood of Japanese market intervention. • Tech & Equity Pullback: The global AI-driven stock rally slowed. Despite flagging a 19-fold profit increase, Samsung Electronics fell up to 7%, dragging South Korea's chip-heavy market down 1.5% and pulling the Philadelphia semiconductor benchmark down 4.6% due to short-term profit-taking. _Context for Sri Lanka_: Rising global oil prices and a strengthening U.S. dollar typically pressure local fuel pricing, import costs, and foreign reserves, keeping pressure on key industrial inputs for domestic manufacturing.

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📈 Bond Yields Steady as Activity Picks Up; Rs. 100 Bn T-Bill Auction in Focus

• Bond Market Overview: Secondary bond market activity saw a marginal pickup, concentrated heavily on the short end of the yield curve. Short-term maturities (2028) traded between 10.50% and 10.65%, 4-year segments (2030) ranged from 11.10% to 11.33%, and the belly end (2032) traded at 11.60%. • Treasury Bill Auction: A Rs. 100 Bn T-Bill auction is scheduled for today, offering Rs. 50 Bn (91-day), Rs. 35 Bn (182-day), and Rs. 15 Bn (364-day). This follows last week's auction where weighted averages rose across all tenors (91-day and 182-day up 9 bps to 10.23% and 10.30%; 364-day up 3 bps to 10.20%), showing a clear front-end bias in government securities re-pricing. • Money Market Liquidity: Net liquidity surplus stood strong at Rs. 134.77 Bn. Market participants deposited Rs. 120.97 Bn at CBSL's 8.25% SDFR, while CBSL drained Rs. 13.80 Bn via an overnight repo auction at 8.75%. Overnight call money and repo weighted average rates closed at 9.17% and 9.19% respectively. • Forex Market: The USD/LKR spot exchange rate held steady, closing at Rs. 334.85/335.00 against the previous day's Rs. 334.90/335.00. The total traded volume stood at US$ 66.70 million.

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📉 CSE falls below 22,000 points on 6th consecutive day of losses

The Colombo Stock Exchange (CSE) extended its decline for a sixth straight session yesterday due to broad-based selling pressure, dragging the main index below the 22,000 mark. • Market Performance: The ASPI fell 0.54% (down 118.35 points) to close at 21,962.30, while the S&P SL20 index dipped 0.51% (down 31.55 points) to 6,135.50. • Turnover & Volume: Daily turnover surpassed Rs. 1.5 Bn with nearly 58 million shares traded. Market breath was significantly negative, with 169 decliners outpacing 49 gainers. • Investor & Sector Activity: High-net-worth and institutional participation remained slightly active via negotiated crossings, while retail interest was average. Foreign investors recorded a net outflow of Rs. 185 Mn. The capital goods sector led market turnover with a 31% share, heavily driven by activity in John Keells Holdings (down 10 cents to Rs. 20) and Access Engineering (up 30 cents to Rs. 78.40). The retailing and materials sectors collectively contributed 22% to the day's turnover. • Top Drags & Contributors: The primary negative drivers for the ASPI were Dialog Axiata, Melstacorp, and John Keells Holdings. Meanwhile, counters like Chevron Lubricants saw positive movement, appreciating by Rs. 1.25 to close at Rs. 200.50.

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📉 Colombo Stock Market Drops Below 22,000 Mark

The Colombo Stock Exchange (CSE) experienced a notable downturn today (07 July 2026), with benchmark indices sliding below critical thresholds amid pressure on major blue-chip and financial sector stocks. • Market Indices Overview: The benchmark All Share Price Index (ASPI) fell by 118.35 points to close at 21,962.30, marking its first dip below the 22,000-point threshold since June 12. The blue-chip S&P SL20 index declined by 31.55 points to end at 6,135.50. • Key Drivers & Sectors: The slump was primarily driven by price drops in heavyweights like Dialog Axiata and Melstacorp. Other major contributors to the downward trend included John Keells Holdings (JKH), Carsons Cumberbatch, and CIC. The banking sector also faced pressure, with NDB, HNB, and Sampath Bank all recording price declines. • Turnover & Trading Activity: Despite the index decline, daily market turnover reached LKR 1.53 Bn. Activity was supported by crossings, particularly in JKH, which generated LKR 264 Mn in crossings and a total daily turnover of LKR 306 Mn. Sathosa Motors also saw high activity, recording a turnover of LKR 126 Mn (including crossings), while most other listed companies stayed below LKR 100 Mn.

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📈 Bond Market Starts Slow; Yields Steady as Rupee Appreciates

• Market Sentiment: The secondary bond market commenced the trading week on a slow note with dull activity and considerably lower transaction volumes. Yields continued to consolidate at prevailing levels. • Yield Breakdown: - 01.08.30 maturity traded at 11.25% - 15.01.33 maturity traded at 11.60% - 01.11.33 maturity traded at 11.66% - 15.03.35 maturity traded at 11.70% - 15.06.35 maturity traded at 11.75% • Money Market & Liquidity: Net liquidity surplus increased to Rs. 132.29 Bn (vs Rs. 128.47 Bn previously). Rs. 112.29 Bn was deposited at the Central Bank's SDFR of 8.25%. The Domestic Operations Department drained Rs. 20 Bn via an overnight repo auction at a weighted average rate of 8.75%. Weighted average rates for overnight call money and Repo stood at 9.18% and 9.21% respectively. • Forex Market: The Sri Lankan Rupee (LKR) appreciated marginally against the US$ to close at Rs. 334.90/335.00 compared to the previous close of Rs. 335.20/335.30. Total USD/LKR traded volume for July 3 stood at US$ 88.25 Mn.

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🔴 CSE Opens the Week in Red Amid Subdued Sentiment

The Colombo stock market commenced the week down as investor sentiment remained subdued with low high-net-worth (HNW) participation, balanced by a slight rise in retail interest. • Overall Market Figures: The All Share Price Index (ASPI) fell 0.44% (-98.08 points) to close at 22,080.65. The active S&P SL20 also slid 0.44% (-27.17 points) to 6,167.05. Market turnover recorded over Rs. 1.35 Bn with over 41.7 Mn shares traded. Foreign investors remained net sellers, marking a net outflow of Rs. 315.8 Mn. • Sector Breakdowns: • Utilities: Led daily turnover with a 28% share, though the sector index lost 0.36%. Windforce Ltd. was the top turnover contributor, dipping by 10 cents to Rs. 40.90. • Capital Goods: Second highest contributor to turnover, with the sector index decreasing by 0.12%. John Keells Holdings lost 10 cents to close at Rs. 20.10, while Hemas Holdings closed flat at Rs. 32.80. • Banking: Formed part of the collective 26% turnover contribution alongside Capital Goods, though heavyweights like Hatton National Bank (HNB) faced negative pressure. • Key Market Drivers: The main negative contributors pulling down the ASPI were CINS, HNB, RIL, DIAL, and CFIN. HNW and institutional activity focused on Windforce, Hemas Holdings, and HNB (non-voting). Singer Sri Lanka bucked the trend slightly, gaining 10 cents to close at Rs. 75.10, while Ceylon Cold Stores dropped Rs. 1.75 to close at Rs. 128.25.

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📈 June National Tea Sales Average Dips, H1 2026 Marginally Up

Based on provisional data from Forbes & Walker Research, Sri Lanka's tea sector saw mixed results as the June National Sales Average (NSA) declined month-on-month (MoM) but showed slight resilience year-on-year (YoY). • Overall Figures: The June NSA stood at Rs. 1,153.49 (US$ 3.45), down by Rs. 31.07 (US$ 0.20) compared to May 2026. However, compared to June 2025, the rupee average rose by Rs. 50.22, though its US dollar equivalent fell by US$ 0.23. • H1 2026 Cumulative Performance: The first six months recorded a cumulative NSA of Rs. 1,162.09 (US$ 3.66), reflecting a marginal YoY increase of Rs. 3.55. Due to exchange rate dynamics, the dollar-denominated average fell by US$ 0.23 YoY from US$ 3.89. • Elevation Breakdowns (MoM vs YoY): - High Grown: Suffered the sharpest MoM drop, falling Rs. 64.64 (US$ 0.29). YoY, it gained Rs. 52.40 but lost US$ 0.19. This was the only category with a positive year-to-date (YTD) variance in rupee terms. - Medium Grown: Declined MoM by Rs. 53.74 (US$ 0.25) and YoY by Rs. 29.82 (US$ 0.43). - Low Grown: Marginally dipped MoM by Rs. 12.61 (US$ 0.15) but showed a strong YoY rupee gain of Rs. 72.02, despite a US$ 0.19 dollar decline. Both Medium and Low Grown categories posted negative YTD variances in both currencies.

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💵 US Dollar Selling Rate Drops Below Rs. 340

The exchange rate pressure on the Sri Lankan Rupee (LKR) throughout June 2026 is showing gradual signs of easing, leading to a steady decline in the US Dollar value from June 24 to July 6. • Current Rates: For the first time since June 23, the selling rate of the US Dollar fell below the Rs. 340 mark today (July 6). The Central Bank of Sri Lanka (CBSL) recorded the buying rate at Rs. 330.39 and the selling rate at Rs. 339.88. • Year-to-Date Performance: Despite the recent recovery, the year-to-date depreciation of the Sri Lankan Rupee against the US Dollar stood at 7.7% as of July 3, 2026, according to official data. • Economic Impact: A stabilizing Rupee can influence crucial domestic sectors like manufacturing, apparel & textiles, and fuel imports by managing input costs and improving market predictability.

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📈 Global Markets Ease Ahead of Tech Earnings; Oil Slips on Supply Boost

• Market Overview: Asian share markets eased on Monday as caution took hold prior to the AI sector's crucial earnings season. Japan's Nikkei fell 1.4%, South Korea's index dropped 1.2% (though remaining up 90% YTD), and MSCI's broadest Asia-Pacific index outside Japan edged down 0.2%. US futures trended slightly positive, with Nasdaq futures adding 0.7%. • Energy & Inflation: Brent crude fell 0.5% to near four-month lows at $71.79 a barrel, while U.S. crude lost 0.3% to $68.47. The drop follows an OPEC+ agreement to increase output targets by 188,000 barrels per day from August, alongside stable shipping through the Strait of Hormuz. • Interest Rates & Forex: Easing energy costs and soft U.S. payroll data led markets to scale back near-term Federal Reserve rate hike expectations, with futures pricing a 78% chance of unchanged rates on July 29. Conversely, New Zealand's central bank is expected to raise its 2.25% cash rate by 25 basis points on Wednesday. The US dollar index steadied at 100.880, while the yen hovered near 40-year peaks at 161.79 per dollar. • Corporate Earnings: Tech profits remain a core focus driven by global AI demand. Sector leader Samsung Electronics is projected to announce an 18-fold increase in operating profit, reaching an estimated 86 trillion won (US$ 56.35 Bn) for the April-to-June quarter. • National Context Note: The provided text contains global macroeconomic data and does not contain explicit details regarding Sri Lankan domestic sectors such as tea, apparel & textiles, or ICT/BPM.

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CSE Declines 0.2% in June as Monthly Losses Extend 📈

The Colombo stock market continued its downward trend through June, marking its fourth monthly drop of the year despite a slight recovery in blue-chip shares. • Overall Market Figures: The All Share Price Index (ASPI) declined by 0.2% in June. Year-to-date (YTD) as of end-June, the ASPI is down by 1.6%. • Blue-Chip Performance: The active S&P SL20 index bucked the broader market trend, recovering from the previous month to post a 0.75% gain in June. However, its YTD performance remains down by 0.77%.

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📉 CSE Ends Week Down 1% Amid Bearish Run

The Colombo Stock Exchange (CSE) extended its bearish run into four straight sessions, ending the week in the red. • Weekly Market Overview: The All Share Price Index (ASPI) fell by 1.03% to close at 22,178.73, while the active S&P SL 20 dropped 0.85% to 6,194.22. On the final trading day, 111 counters closed in the red against 92 in green. • Trading Volumes & Foreign Activity: Daily market turnover reached over Rs. 1.5 Bn with nearly 30.6 million shares traded. Foreign investors were net sellers, resulting in a net foreign outflow of Rs. 157.9 million. • Sector Performance: - Banking: The top contributor to weekly turnover, driven by Sampath Bank, Commercial Bank, and Hatton National Bank. The sector index edged down by 0.11%. Sampath Bank fell by Rs. 0.50 to Rs. 142, while Commercial Bank gained Rs. 0.25 to Rs. 208.75. - Capital Goods: The second highest turnover contributor, led by Access Engineering. The sector index decreased by 0.22%, though Access Engineering gained Rs. 0.30 to close at Rs. 78.20. • Key Stock Drivers: CINS, JKH, RCL, and SAMP heavily weighed down the ASPI. Conversely, DIAL, OLC, BUKI, and CARS provided positive market support. • Investor Participation: High net worth and institutional interest was concentrated in the banking sector and Access Engineering. Retail interest was active in apparel & textiles via Teejay Lanka, alongside Cargills Bank and LVL Energy Fund.

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📈 Asian Markets Rebound as Cooling US Jobs Data Eases Rate Hike Fears

• Market Movement: After two days of declines, MSCI’s broadest index of Asia-Pacific shares (ex-Japan) rose 1.3%. Japan's Nikkei 225 reversed early losses to trade 0.7% higher, while South Korea's Kospi jumped 3.0% driven by a rebound in chipmaker stocks. • Economic Activity (PMIs): June regional Purchasing Managers' Index (PMI) data showed strong economic expansion. Japan's services sector returned to expansion, while China’s services activity expanded with overseas demand hitting a 20-month high. • US Factor: A lukewarm US jobs report for June showed sharply slowed job growth, dropping the unemployment rate to 4.2% as workers left the labor force. This cooling labor market doused expectations of a near-term Federal Reserve rate hike, pushing up the probability of steady rates in September to 46.8% (up from 35.8%). • Currency & Commodities: The US dollar index fell 0.2% to 100.80, with the dollar flat against the Yen at 161.125 amid holiday-thinned liquidity and intervention watches. Brent crude futures edged up 0.5% to US$ 72.12 a barrel, while Gold jumped 1.4% to US$ 4,179.73. _Note: Global macroeconomic shifts like US interest rate pauses and rising regional demand heavily impact external facing sectors in Sri Lanka, including apparel & textiles, tea exports, and logistics._

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Economic News

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Sri Lanka’s Official Reserves Drop by 6.3% to US$ 6.45 Bn in June 2026 📉

Sri Lanka’s official reserve assets experienced a contraction in June 2026, driven primarily by a decline in foreign currency and gold holdings, according to provisional Central Bank of Sri Lanka (CBSL) data. • Overall Figures: Total official reserve assets fell by 6.3% Month-on-Month (MoM), dropping to USD 6,450 million (approx. US$ 6.45 Bn) from USD 6,881 million in May 2026. This represents an absolute decrease of USD 431 million. • Foreign Exchange Breakdown: The decline was heavily influenced by a 6.1% drop in foreign exchange reserves, which decreased to USD 6,254 million compared to the previous month. • Gold Reserves: Liquid gold reserves also saw a sharp double-digit contraction, declining by 11.7% MoM to settle at USD 191 million.

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📈 Sri Lanka’s Structural Labour Shortage Constrains Growth

A new analysis reveals Sri Lanka's private sector faces a critical, long-term structural labour shortage across agriculture, construction, manufacturing, logistics, and services, heavily delaying expansion plans. • Shrinking Labour Force: The Labour Force Participation Rate (LFPR) dropped from 54.1% in 2017 to 47.4% in 2024. The total active workforce shrank from 8.2 Mn to 7.95 Mn workers, significantly below the 61% global average. • The Female Worker Gap: Female LFPR fell sharply from 36.6% to just 29.8% (approx. 338,000 fewer women), drastically underperforming against the global average of 48–50%. • Migration Shock: In 2024, 314,786 Sri Lankans registered for foreign employment. Crucially, 77.66% were skilled workers (machine operators, technicians, tradespeople), creating a severe domestic drain. • Sector Imbalances: Agriculture still holds 26% of employment (2.07 Mn workers) but remains largely informal and low-productivity. Meanwhile, the country lacks updated data, with the last comprehensive Labour Demand Survey conducted back in 2017. • Policy Outlook: Importing foreign labour is deemed unviable due to high compliance costs and low wage premiums over regional peers (India, Bangladesh). Experts urge an immediate 2026 National Labour Demand Survey and structural reforms to boost domestic female participation.

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NCGI Issues 2,000 Collateral-Free Guarantees Exceeding Rs. 14 Bn 📈

The National Credit Guarantee Institution (NCGI) has rapidly expanded its support for Sri Lankan micro, small, and medium enterprises (MSMEs) facing severe financing constraints due to conventional collateral requirements. • Overall Coverage: Issued 2,000 collateral-free loan guarantees totaling more than Rs. 14 Bn within a span of 15 months, according to provisional operational data. • Guarantee Mechanism: Provides partial credit guarantees (up to 67% for standard loans and up to 80% under specialized sub-schemes) to mitigate lending risks for its 13 shareholder financial institutions. • Strategic Focus: Directs uncollateralized capital primarily into crucial economic drivers such as agriculture, tourism, information technology (IT), and exports, with an emphasis on financial inclusion for women-owned enterprises. _Note: Summarized based on provisional institutional progress updates._

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📈 IMF & RARMB Hold Talks on Sri Lanka Revenue Reforms

A high-level meeting between the International Monetary Fund (IMF) and the Revenue Administration Reform and Modernisation Bureau (RARMB) reviewed Sri Lanka's Medium-Term Revenue Strategy (MTRS) at the Presidential Secretariat. • Overall Institutional Reforms: The IMF recognized RARMB as a 'reform hub with a strong governance framework' and committed to continued technical and advisory support to modernize the country's public revenue collection. • Inland Revenue Department: Structured restructuring has reorganized branches into Medium Corporate, Metro, and Regional Offices. Consequently, tax compliance has significantly increased from 40–45% up to 70–75%. • Sri Lanka Customs: A new draft Bill to amend the decades-old Customs Ordinance has been submitted to the Legal Draftsman’s Department. Upcoming measures include simplifying the tariff structure, transitioning to paperless processes, and enhancing exporter facilitation. • Department of Excise: Operational modernization is currently underway through the introduction of a new Excise Management System. • Data Integration & Compliance: A unified, integrated coordination mechanism has been established between Customs and Inland Revenue to enable joint audits, data sharing, and real-time verification of importer tax compliance. The discussions primarily focused on accelerating digital transformation, broadening the tax base, and driving human resource and leadership development across revenue-collecting agencies.

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📈 Why a 5% Inflation Target Outperforms 2% for Sri Lanka

An analysis by the President of the Sri Lanka Economic Association details why a flexible 5% inflation target (with a +/-2% margin) is superior to a 2% target for Sri Lanka's economic stability and growth. Overall Figures & Growth Prospects • GDP Projections: Sri Lanka's growth remains constrained, with official GDP projected at 3.0% in 2026, 3.2% in 2027, and 3.1% in 2028. • Tolerable Inflation Zones: For developing nations, 1% to 7% is the beneficial zone for growth, while 7% to 11% is considered tolerable. Detrimental impacts occur only when inflation exceeds 11%. Advanced economies maintain lower thresholds (1% to 3%). Key Structural Realities • Monetary Policy Space: A 2% target lowers baseline nominal interest rates, leaving the Central Bank of Sri Lanka (CBSL) minimal room to cut rates during downturns, risking a Zero Lower Bound (ZLB) liquidity trap and deflationary spirals. • External & Internal Shocks: Inflation in Sri Lanka is heavily driven by weather-induced domestic food supply disruptions and global oil prices—factors outside CBSL's direct control. • The Productivity Problem: Low inflation alone cannot drive productivity. Growth is severely hindered by outmoded factor-driven manufacturing relying on cheap labor, and an extremely low R&D expenditure of just 0.1% of GDP (vs. Malaysia's 1.0% or Singapore's 2.2%). Strategic Policy Takeaway • Moving to an innovation-driven economy requires prioritizing Science, Technology, and Innovation (STI). Tightening the target to 2% restricts the necessary policy flexibility to cushion economic downturns, further decelerating GDP. Trade liberalisation, SOE efficiency, and investment climate improvements remain the true priorities to unlock growth potential.

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📈 Eurozone Disinflation to Ease Pressure on Sri Lanka’s Rupee and Import Costs

Lower global energy prices and cooling Eurozone inflation could significantly improve Sri Lanka’s external economic position, according to Frontier Research. • Eurozone Inflation Slows: June headline inflation dropped to 2.8% (down from 3.2% in May), while core inflation eased to 2.4% (down from 2.6%). Disinflation broadened across major markets, with Germany hitting 2.3% and France slowing to 2.0%. • Impact on Key Imports: A sustained decline in global oil prices will help lower Sri Lanka's volatile fuel import bill, which previously surged to US$ 866 Mn in April before moderating to US$ 536 Mn in May. Additionally, lower inflation in Europe will reduce the cost of Sri Lanka’s US$ 1.15 Bn annual imports from the EU. • Currency and Macro Stability: The reduction in import bills is expected to narrow the current account deficit and reduce depreciation pressure on the Sri Lankan rupee, which has weakened by approximately 7% against the US dollar so far this year. • Monetary Policy Outlook: The cooling data strengthens expectations (96% probability) that the European Central Bank (ECB) will maintain its deposit rate at 2.25% on July 23. • Key Risks: Frontier Research warns that risks remain as energy prices hover above pre-conflict levels. Ongoing Middle East tensions, potential fertilizer shortages, and adverse European weather could still push food prices upward.

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📈 CBSL Resumes Net Dollar Purchases in June

The Central Bank of Sri Lanka (CBSL) returned to being a net buyer of foreign exchange in June 2026 as pressure on the rupee eased, reversing the net sales seen in May. • Overall Interventions: CBSL purchased US$ 96.3 Mn and sold US$ 25.8 Mn, resulting in a net purchase of US$ 70.5 Mn for June. This successfully reversed May’s net sale of over US$ 211 Mn (which had marked the first net sale in 22 months). • First-Half Cumulative Figures: Total cumulative net foreign exchange purchases reached US$ 556.4 Mn for 1H 2026. This follows a record net purchase of US$ 2.00 Bn across the full year of 2025. • National Reserves Context: Gross official reserves were provisionally estimated at US$ 6.88 Bn as of end-May 2026, a figure that includes proceeds from the People’s Bank of China (PBOC) swap arrangement.

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📈 Sri Lanka Economic & Political Update: Key Risk Indicators

Based on provisional data and analysis, Sri Lanka faces intense economic strains driven by external geopolitical shocks and internal financial mismanagement. • Overall Financial Figures IMF EFF Program: Sri Lanka has utilized US$ 2.40 Bn out of the approx. US$ 3.00 Bn package; official program concludes in November 2026. Foreign Reserves: Rose slightly by 1.6% from US$ 6.70 Bn in April to US$ 6.80 Bn in May, falling short of the revised US$ 8.00 Bn IMF target. External Debt Burden: Non-IMF external debt remains heavy, comprising US$ 10.70 Bn from bilateral lenders and US$ 10.30 Bn in International Sovereign Bonds (ISBs). Socio-Economic Impact: The national poverty level is at risk of climbing above 24% due to aggressive tax increases. • Macro Shocks & Sector Breakdowns Geopolitical Disruptions: Ongoing Middle East conflicts and transit drops in the Hormuz Strait led to a US$ 1.90 Bn spike in national imports, increasing fuel/food prices and disrupting key export markets like tea. Industrial Fallout: Escalating power and fuel costs are driving a collapse in the MSME sector. • Reported Financial Irregularities Revenue Leaks: US$ 23.71 million in LCs (1,782 vehicles) were opened hastily right before a 50% vehicle import surcharge in May 2026. Banking & Transaction Frauds: A multi-billion fraud involving a siphoning of Rs. 13.00 Bn was flagged at the National Development Bank, alongside a wrongly processed US$ 2.50 million external transfer from Treasury accounts.

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Govt. Signals Tighter Spending with 2027 Budget Call 📉

The Sri Lankan government has officially commenced preparations for the 2027 Budget under National Budget Circular 02/2026. Emphasizing strict fiscal consolidation, the Treasury has imposed binding expenditure ceilings on ministries, leaving little room for spending beyond ongoing commitments. Key Fiscal Targets • Primary Surplus: Targeted to rise to 2.6% of GDP in 2027, up from 2.1% in 2026. • Budget Deficit: Projected to contract to 4.5% of GDP in 2027, down from 5.6% in 2026. Top Ministry Allocations (Baseline Ceilings) • Public Administration & Local Govt.: Rs. 722 Bn (Largest allocation) • Provincial Councils: Rs. 655 Bn • Health and Mass Media: Rs. 595 Bn • Transport, Highways & Urban Dev.: Rs. 491 Bn • Finance, Planning & Economic Dev.: Rs. 458.1 Bn • Defence: Rs. 447 Bn Stricter Project Scrutiny & Priorities • New Projects: Banned from baseline allocations. Proposals must be submitted separately to the Public Investment Committee for rigorous evaluation under the Public Financial Management Act. • National Priorities: Priority will be granted to initiatives driving economic growth, exports, digital transformation, climate resilience, and public service efficiency. • Cost Management: Chief Accounting Officers must prioritize non-discretionary obligations (salaries, pensions, utilities) within existing limits to avoid mid-year supplementary demands. • Digitization: All estimates must be processed via the Integrated Treasury Management Information System (ITMIS). _Note: Budgets are prepared based on provisional forward baseline estimates. All ministry submissions are due by 31 July 2026._

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📈 Sri Lanka Customs Revenue Surges 29.5% in 1H 2026, Exceeds June Target by 22%

• Overall Figures: Sri Lanka Customs collected Rs. 1.37 trillion (Rs. 1,373.8 Bn) during the first half (1H) of 2026, marking a 29.5% increase compared to the same period last year. This cumulative collection achieves 62.2% of the department's full-year target of Rs. 2,207 Bn. • June Performance: Revenue for June 2026 surged to Rs. 225.2 billion, beating the monthly target of Rs. 184.9 billion by 22%. • Growth Drivers & Context: The revenue boost was driven by stronger enforcement, improved valuation practices, and a recovery in import volumes. The 2026 full-year target is 13.5% lower than 2025's record collection of Rs. 2,551 billion, which reflects an expected sharp decline in vehicle imports. Despite lower targets, performance continues to exceed expectations, continuing a trend from 2025 where the department beat its revised target of Rs. 2,241 billion.

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📈 Sri Lanka Q1 2026 Unemployment Edges Down to 3.7%

Sri Lanka’s unemployment rate fell marginally to 3.7% in Q1 2026 from 3.8% YoY, according to provisional data from the Department of Census and Statistics. However, the overall labour force participation rate (LFPR) eased by 0.5 percentage points to 49.2%. • Labor Force & Participation: The total labour force stood at 8.41 Mn (5.40 Mn men, 3.01 Mn women). While male participation dropped to 69.1% (from 70.1% YoY), female participation improved to 32.5% (up from 32.0% YoY). • Sector Breakdown: Employed persons totaled 8.10 Mn. The services sector remained the primary employer at 50.4%, followed by industry at 25.9% and agriculture at 23.7%. Non-agricultural activities accounted for 76.3% of total employment. • Gender & Youth Disparities: Unemployed persons reached 311,495. The female unemployment rate (6.1%) was over double the male rate (2.4%). Youth unemployment (ages 15-24) remained high at 16.1%, rising to 19.2% for women. • Education Insights: Joblessness was highest among individuals with GCE Advanced Level qualifications and above, sitting at 6.5%. This trend is significantly more severe for educated women (9.7%) compared to men (3.2%).

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📉 SL Official Poverty Line Rises to Rs. 17,315 in May 2026

The Department of Census and Statistics (DCS) has released the latest minimum monthly expenditure figures required per person to fulfill basic needs in Sri Lanka. • National Overview: The national official poverty line increased to Rs. 17,315 per person per month in May 2026. This reflects a Month-on-Month (MoM) increase of Rs. 198 from April 2026 (Rs. 17,117) and a Year-on-Year (YoY) increase of Rs. 894 from May 2025 (Rs. 16,421). • Highest District Expenditures: Regional disparities persist, driven heavily by urbanization and living costs in key employment and plantation hubs. - Colombo: Rs. 18,675 - Nuwara Eliya: Rs. 18,209 - Kegalle: Rs. 18,105 • Lowest District Expenditures: Chiefly rural and agricultural regions recorded the lowest required basic thresholds. - Moneragala: Rs. 16,556 - Mannar: Rs. 16,698 - Hambantota: Rs. 16,823

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Uncategorized

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Daily FT Content Extraction Interrupted 📈

• Status Update: The requested article from Daily FT failed to load due to a secure connection timeout (Read timed out). No text or data was extracted from the source link. • Key Details: Headline: Error Published At: 2026-07-08 07:58:54 Error Log: HTTPSConnectionPool (host='www.ft.lk', port=443): Read timed out (30s). • Economic Context Note: Accurate indicators regarding critical Sri Lankan sectors like tea, apparel & textiles, or ICT/BPM cannot be provided in this summary as the relevant material is completely missing. _Note: This brief report is based on provisional network transaction data._

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📈 Negombo Prison Violence Linked to Rival Drug Groups; Reform Measures Unveiled

Preliminary investigations indicate the recent violence at the Negombo Prison, which left 27 dead, was triggered by a confrontation between rival groups linked to the illegal drug trade. • Casualties & Impact: The death toll has risen to 27, comprising 7 prison officers and 20 inmates. A further 76 individuals remain hospitalized, including 23 prison officers and 53 inmates. • Incident Details: The clash escalated on Monday morning. Inmates targeting informants who helped prevent contraband smuggling deliberately destroyed security infrastructure, including CCTV cameras and a body scanner. Unarmed officers were attacked while attempting to contain the breach. • Ongoing Investigations: Multiple concurrent probes have been launched, including an independent Cabinet-appointed committee inquiry, a joint Criminal Investigation Department (CID) and Colombo Crimes Division (CCD) investigation, and an internal Prisons Department probe. • Prison Sector Reforms: To address systemic overcrowding, the Government announced plans to expand prison capacity by 10,000 places. A committee is also reviewing amendments to the House Arrest Act to allow electronic monitoring for certain remand prisoners. • Human Resources: The Justice Ministry acknowledged severe recruitment challenges in the state prison service, noting a drastic decrease in job applications due to the sector becoming increasingly unattractive.

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⚖️ Sri Lanka Judiciary: Calls for Reform & Transparency

A public debate has emerged over proposals to extend the tenure of the Chief Justice and Supreme Court Judges, alongside delays by the President in filling eight judicial vacancies. Concurrently, Parliament recently rejected a motion to examine the Judicial Service Commission's (JSC) power over the disciplinary control and termination of judicial officers. • Key Issues & Allegations: The JSC is facing allegations in Parliament of acting arbitrarily in terminating several judicial officers. While the Speaker rejected a parliamentary oversight motion on the grounds that the JSC exercises judicial power, historical precedent (_The Queen v. Liyanage, 1962_) dictates that the JSC performs executive functions, not judicial power. • Global Standards Gaps: Experts note that the Sri Lankan Judiciary has failed to adopt two critical 21st-century UN-sponsored global instruments designed to guide the professional, ethical, and disciplinary frameworks of judges: The Bangalore Principles of Judicial Conduct (2006): Outlines that disciplinary actions must be defined by law, limited to serious misconduct, handled by an independent tribunal with full rights of defense, and allow for appeals. The Istanbul Declaration on Transparency (2019): Requires the promulgation of ethical standards, mandatory judicial ethics training, and mechanisms for judges to seek guidance on conduct. • Systemic Context: The JSC, originally formed in 1946 and restored under the 1978 Constitution, is facing criticism for failing to align with modern international frameworks. Adopting these global standards is highlighted as essential for safeguarding the independence, impartiality, and integrity of Sri Lanka's judicial administration.

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🚨 Special Committee Appointed to Probe Negombo Prison Violence

The Cabinet of Ministers has approved the appointment of a special committee to investigate the recent violent clashes at the Negombo Prison. • Investigation Team: The committee will be headed by retired Supreme Court Judge Priyantha Fernando, alongside retired Additional Solicitor General President’s Counsel Milinda Gunathilaka and President’s Counsel Mohan Weerakoon. • Mandate & Scope: The panel is tasked with conducting a formal and comprehensive inquiry into the incident to identify the root causes of the clashes. • Deliverables: The committee must submit a detailed report outlining its findings, actionable recommendations to resolve existing issues, and strategic measures to prevent similar occurrences in the future.

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Tragic Negombo Prison Clash Leaves 2 Dead, 35 Injured Over Drug Dispute

A violent clash between rival inmate groups at the Negombo Prison yesterday resulted in two fatalities and injuries to 35 others, triggering widespread unrest and rooftop protests. • Casualties & Medical Status: Two inmates succumbed to injuries at the Negombo General Hospital. Out of the 35 injured, two critically wounded prisoners have been transferred to the National Hospital in Colombo for specialized treatment. • Root Cause: Police investigations reveal the confrontation was sparked by a dispute over the exposure of an internal drug trafficking operation. The violence was allegedly orchestrated by a drug trafficker with ties to an organized crime figure. • Escalation: Inmates forced open high-security cells to assault rivals, while another group raided the prison dispensary to consume large quantities of painkillers. Both male and female inmates subsequently staged rooftop protests. • Security Response: The Police, Special Task Force (STF), and riot control units deployed a major security operation to restore order. Security personnel remain stationed at the facility, which currently houses nearly 1,800 inmates, as investigations continue.

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🎨 Sky Gallery Hosts 'Hands That Speak' Contemporary Sculpture Exhibition

The Sky Gallery of the Fareed Uduman Art Forum has launched ‘Hands That Speak’, a curated exhibition showcasing the diverse, expressive work of 11 contemporary Sri Lankan sculptors. Running from July 3 to July 5, 2026, the event highlights local artistic innovation and talent. • Exhibition Overview: Features a rich spectrum of contemporary sculpture, ranging from intimate pieces to bold conceptual statements. The collection utilizes diverse mediums including copper, stone, metal, wood, dolomite, fibre, cement, and recycled materials. • Artist Demographics: The 11 featured sculptors represent the emerging and inclusive nature of Sri Lanka's creative sector, including four women artists and four architecture students, boosting talent development in the creative industries. • Thematic Focus: Material Reuse & Sustainability: Multiple artists focus on turning recycled and discarded metals into expressive art (e.g., 'rustique edge' metal art), highlighting sustainable practices within the arts and crafts sector. Socio-Economic Commentary: Artworks address national themes such as the shifting economic and cultural conditions of society, commercial pressures faced by modern youth, and the universal struggles of motherhood. • Economic Context: Organized by the Fareed Uduman Art Forum, the exhibition serves as a vital platform for both established and emerging local artists, promoting the cultural economy, accessible public art, and creative entrepreneurship in Sri Lanka.

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🎨 Jagath Weerasinghe’s Solo Exhibition Opens at Saskia Fernando Gallery

A new solo exhibition by pivotal contemporary Sri Lankan artist Jagath Weerasinghe, titled "Trapped in a Broken Dream, I Still Think of You," is open until 19 July 2026 at 41, Horton Place, Colombo 7. The collection presents a critical, visual exploration of systemic violence, disillusionment, and geopolitical conflicts. • Key Series & Themes: • Fury: Focuses on the "mothers of the disappeared," capturing the 20-year grief and rage of women waiting for loved ones since the end of the civil war. • Insistent Threat: Uses hurried ink gestures reflecting a brief local political climate that echoed the island's 1980s violence. • Shiva: Reimagines the deity to critique global righteousness that ideologically justifies modern violence. • Sleep of Reason: Depicts figures trapped in unreason and flawed systemic structures. • Artist Profile: Weerasinghe has been a driving force in Sri Lankan art since the early 1990s. His work is housed in major international collections, including the Los Angeles County Museum of Art (LACMA), Fukuoka Art Museum, and Devi Art Foundation. _Note: This summary is based on promotional exhibition data._

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🎵 Soul Sounds Returns to Lionel Wendt with ‘The Pop Era’ on 12 July

Sri Lanka’s premier female vocal ensemble, Soul Sounds, will return to the Lionel Wendt Theatre stage on 12 July 2026 at 7.30 p.m. for its latest musical production, 'The Pop Era'. • Event Highlights: Directed by renowned music director Soundarie David Rodrigo, the concert will feature a journey through decades of global pop classics, reimagined via the ensemble's signature rich harmonies and dynamic arrangements. • Economic & Cultural Context: Soul Sounds represents a key pillar in Sri Lanka's creative economy and cultural diplomacy. Comprising young women from diverse backgrounds, the ensemble drives local high-quality theatre productions and international representation. • Track Record & Achievements: • Former Holy Family Convent Senior Choir, now an internationally acclaimed independent ensemble. • Multi-award winning group: Secured two Silver Medals at the World Choir Games in China and two Gold Medals at the World Choir Games in Auckland, New Zealand (2024). • Extensive global footprint with concert tours across the US, Australia, Europe, Africa, and Asia. • Leadership: Directed by Soundarie David Rodrigo, a Royal College of Music graduate, international jury member, and recipient of the SAARC Woman of Achievement, Zonta, and Bunka awards.

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🎬 US Embassy Celebrates 250 Years of Independence via Cinema in Colombo

The US Embassy in Colombo celebrated the 250th anniversary of American independence (semiquincentennial) under an American cinema theme, emphasizing liberty, democracy, and freedom of expression. • Key Highlights: • Dignitaries Present: Health and Mass Media Minister Dr. Nalinda Jayatissa attended as the Chief Guest, alongside government officials, business leaders, and diplomats. • Theme & Visuals: US Chargé d’Affaires Jayne Howell noted that films inspire global creativity and open expression. The Embassy grounds featured displays on the 1776 Declaration of Independence and screenings tracing the evolution of Hollywood. • Performances: The event concluded with a fireworks display and a musical performance by the III Marine Expeditionary Force Band from Okinawa, Japan. • Bilateral Context: • The Embassy reaffirmed the longstanding partnership between Sri Lanka and the United States, highlighting continued cooperation across trade, investment, education, and security.

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🚨 Court Remands Three Suspects Till 17 July Over Rs. 120 Mn Bribery Case

• Legal and Political Figures Detained: Colombo Chief Magistrate Asanga S. Bodaragama ordered that Attorney-at-Law Rakitha Nirmala Rajapakshe, SJB Horana Organiser Charitha Wasantha Kumara Abeysinghe, and former Airport and Aviation Services Director Varushahennadige Aruna Sri Chathuranga be further remanded. • The Allegations: The three suspects were arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). They allegedly demanded and accepted a Rs. 120 million bribe from the wife of organised crime figure Nadun Chinthaka (_Harak Kata_) to secure benefits for him. • Bail Refused: The Magistrate rejected the oral bail applications, noting that no exceptional circumstances were presented to justify release. The court remains open to reviewing a future written bail application if exceptional facts are filed.

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🚨 Dengue Cases Reach 57,668 with 36 Deaths in Sri Lanka

Sri Lanka's National Dengue Control Unit (NDCU) has reported a severe spike in dengue infections and fatalities this year, triggering urgent public health interventions. • Overall Figures: A total of 57,668 dengue cases have been recorded island-wide so far this year, with the total death toll rising to 36. • Worst-Affected Regions: The Western Province remains the primary hotspot, accounting for the highest volume of infections. Health authorities noted an upward trend in cases specifically within the districts of Colombo, Gampaha, Badulla, Kurunegala, and Puttalam. • National Response: The Ministry of Public Administration, Provincial Councils and Local Government has launched nationwide vector control campaigns. Health officials stress that community-led source reduction and the regular elimination of mosquito breeding sites are critical to curbing the rising infection curve.

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⚖️ HRCSL Rules Withholding of Hijab-Wearing Candidates' Exam Results Violated Fundamental Rights

The Human Rights Commission of Sri Lanka (HRCSL) issued a final recommendation regarding the withholding of 2024 Advanced Level exam results for approximately 70 Muslim female candidates from Zahira College, Trincomalee. • The Incident: Results were initially withheld by the former Commissioner General of Examinations over allegations that the candidates' religious attire (loose headshawls) violated rules requiring ears to be visible. • The Findings: The HRCSL found that the Department of Examinations failed to prove any rule violation or conduct a proper inquiry. Witnesses confirmed the candidates' ears were visible. The Commission ruled the decision an unnecessary, disproportionate, and unreasonable limitation on the freedom to manifest religion. • Constitutional Violations: The actions violated fundamental rights to the freedom of religion (Articles 10 and 14(1)(e)) and equality and non-discrimination (Articles 12(1) and 12(2)). • Resolution: The Department has since released the results and allowed applications for re-scrutiny. Key HRCSL Recommendations: • Conduct an impartial inquiry and take disciplinary action against officials who misrepresented facts or acted in bad faith. • Issue a clear circular ensuring the examination rule is not interpreted to restrict religious manifestation. Instructions must specify that adapted religious attire (like a loose shawl) keeping ears visible is satisfactory. • Review and ensure the adequate assignment of female invigilators, specifically including Tamil-speaking female invigilators, to exam centres in the future.

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Regulatory & Policy News

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📈 New Sri Lankan MSME Insolvency Law Passed

• Overall Change: Sri Lanka has enacted the Rescue, Rehabilitation and Insolvency Act, No. 12 of 2026 (certified June 17, 2026). It shifts the national framework from a "liquidation-first" regime to one focused on rescue and rehabilitation, retiring the 1853 Insolvency Ordinance. • The MSME Mechanism: Part XI introduces a standalone Debt Restructuring Arrangement. It allows small businesses to avoid expensive administration or liquidation by negotiating flexible repayment plans using the cash-flow insolvency test (pre-emptive entry allowed before actual default). • Key Eligibility & Figures: Outstanding debt threshold must not exceed Rs. 50 million at submission. Financial structures of related MSME companies can be bundled together. Requires approval from creditors holding two-thirds (66.7%) in value of the claims voting. • Key Operational Rules: Mandates the appointment of a registered personal insolvency proposer to investigate affairs and build proposals. Employs a striking "Silence is Consent" rule—creditors who do not attend or vote are deemed to approve. Confirmed plans grant a protective shield, barring legal actions, asset repossessions, and utility terminations. • Implementation Timeline: Institutional provisions establishing the Insolvency Regulatory Authority are active immediately. All other mechanics come into operation in mid-December 2026 (6 months post-certification), with ministerial powers to extend up to mid-2028.

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💸 Sri Lanka Faces US$ 100 Mn Forex Loss Over Delayed Salt Imports

A one-year delay by the Government in deciding the fate of approximately 50,000 metric tons of imported salt has triggered massive economic damage. The imports were originally authorized under emergency measures in May 2025 to bridge domestic shortages caused by severe rains. • Overall Impact: An estimated foreign exchange loss exceeding US$ 100 Mn. This includes capital already sent overseas, accumulated container detention, shipping line demurrage, port storage, and logistics costs. • The Consignments: Around 52,000 metric tons of salt remain completely idle. This consists of 42,000 metric tons held across 1,500 containers and an additional 10,000 metric tons imported as bulk cargo. • Regulatory Failures: Gazette No. 2437/04 lifted the Import Control Licence (ICL) requirement but failed to set a maximum import ceiling. Importers over-ordered from India and China, while numerous consignments subsequently failed to meet the June 10, 2025 shipping deadline or Sri Lanka Standards Institute (SLSI) iodine specifications. • Quality Deterioration: Because iodized salt has an 18-month shelf life, much of the stranded cargo has now expired, drastically reducing its commercial value and making it unfit for direct human consumption without reprocessing. • Proposed Way Forward: Re-exporting is no longer commercially viable. Experts recommend releasing the cargo to National Salt Limited for technical evaluation, reprocessing, and controlled industrial utilization to salvage remaining economic value.

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📈 EDB Hopeful on Avoiding Proposed 12.5% US Tariff Through Trade Pact

• Overview: The Export Development Board (EDB) clarified that the proposed 12.5% US tariff under the USTR’s Section 301 investigation is an extension of an existing reciprocal tariff process, not an entirely new levy. The current 10% tariff rate is set to expire this July. • Tariff Trajectory: Sri Lanka was initially facing a 44% tariff when reciprocal actions were announced on April 2. Following negotiations, the rate was successively reduced to 30%, 20%, and finally the current 10% rate. • The Core Issue: The Office of the US Trade Representative (USTR) proposed the 10% to 12.5% tariff adjustments for 60 economies, including Sri Lanka, following determinations regarding the enforcement of bans on goods produced with forced labour. Sri Lanka is currently grouped under the higher 12.5% rate. • Next Steps & Mitigation: • The Ministry of Trade, Commerce, Food Security and Co-operative Development is actively negotiating to halt the tariff before its scheduled July 24 implementation. • Sri Lanka's formal appeal deadline is July 9. • EDB Chairman Mangala Wijesinghe expressed optimism that signing a pending bilateral trade agreement or securing favorable consideration on representations could help avoid the levy or maintain a competitive regional rate between 10% and 12.5%.

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🌾 Government Lifts Ban on Using Rice and Paddy for Animal Feed

The Government of Sri Lanka has officially revoked restrictions on utilizing rice and paddy for the production of animal feed, reversing previous regulations that strictly prohibited their use in the sector. • Regulatory Update: The Consumer Affairs Authority (CAA) announced that the previous restrictive Gazette Notification, which remained in force until June 24, has been formally withdrawn through a new Gazette issuance. • Permitted Activities: Under the updated framework, the use of rice and paddy is now fully permitted for the processing, purchase, sale, transport, storage, and distribution of animal feed. • Sector Impact: The policy reversal removes all prior operational limitations, allowing agriculture and livestock feed manufacturers to legally reintegrate these grains into their production supply chains.

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📈 CBSL Defends FATF Reforms Against Lawmaker Regulatory Concerns

• Overview: The Committee on Public Finance (CoPF) questioned the Central Bank of Sri Lanka (CBSL) on whether proposed anti-money laundering and counter-terrorism financing (AML/CFT) frameworks are expanding regulatory powers beyond international benchmarks. • Legislative Debate: CoPF Chairman Dr. Harsha de Silva raised concerns from civil society regarding civil liberties and broad criminal provisions. MP Ravi Karunanayake questioned if Sri Lanka is over-legislating beyond domestic interests to satisfy external bodies, warning of potential "technical defaults" from excessive regulations. • CBSL & Legal Defense: CBSL and the Financial Intelligence Unit emphasized that financial sector stability relies on avoiding costly FATF grey-listing. Officials noted that the current FATF evaluation cycle shifts focus from having laws in place to active enforcement metrics (investigations, convictions, and asset freezes). • Economic Context: CBSL Governor Dr. Nandalal Weerasinghe stated that compliance is a critical national interest to prevent economic damage. Grey-listing increases cross-border transaction scrutiny, raises compliance costs, and harms Sri Lanka's international financial reputation. • Conclusion: CoPF indicated it would approve the pending bills but stressed that Parliament must continue balancing stronger state enforcement powers with clear safeguards for individual rights.

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📈 Sri Lanka Toughens AML Laws: Real Estate & Tax Evasion Targeted

Sri Lanka is set to significantly expand its anti-money laundering (AML) framework through proposed amendments to the Prevention of Money Laundering Act, aiming to align with global Financial Action Task Force (FATF) standards ahead of its next mutual evaluation. • New Predicate Offence: Wilful tax evasion under the Inland Revenue Act will now officially become a predicate offence for money laundering. Officials clarified this applies strictly to deliberate criminal evasion, not ordinary tax disputes. • Impact on Property & Assets: The definition of money laundering will expand to cover the use, purchase, conversion, and beneficial ownership of criminal proceeds. For property investments linked to crime, buyers must prove in court that they acquired the asset in good faith without prior knowledge of its origin. • Strengthened Enforcement: - Asset-freezing powers for investigators will double from 7 days to 14 working days before requiring a High Court order. - A newly proposed Proceeds of Crime Management Authority will oversee and manage confiscated assets during legal proceedings. Confiscated properties will eventually be sold, with proceeds channeled into the state's Consolidated Fund. _Note: Based on proposed legislative amendments currently before Parliament._

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📈 SEC Invites Applications for New Credit Rating Agencies

The Securities and Exchange Commission of Sri Lanka (SEC) has opened applications for new credit rating agencies under the SEC Act No. 19 of 2021 to strengthen the capital market's credit assessment infrastructure and enhance market transparency. • Current Market: Sri Lanka currently has only two licensed agencies—Fitch Ratings Lanka Ltd. and Lanka Rating Agency Ltd. (LRA)—providing domestic ratings for banks, finance companies, corporates, and debt securities. • Eligibility Criteria: Applicants must be promoted by either a licensed foreign credit rating agency with minimum 5 years of experience, or a CBSL-licensed commercial bank with at least 5 years of experience in rating entities/securities. • Regulatory Goals: The initiative aims to support informed investment decisions, improve risk management, and foster market discipline by introducing independent, objective, and credible rating alternatives. • Timeline: Applications will be accepted through the SEC website until October 5, 2026.

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⚖️ Tax Experts Warn IRD’s Growing Policy Role Risks Sri Lanka’s Investment Climate

Private sector tax professionals at the CA Sri Lanka 5th Annual Economic and Tax Symposium issued sharp criticisms against the Inland Revenue Department (IRD), warning of growing taxpayer uncertainty and poor administration despite record revenue collections. • Policy Encroachment & Secrecy: Experts claim tax policymaking is increasingly being delegated to the IRD, blurring the line between Parliamentary intent and administration. Legal interpretations remain opaque, with calls to publish anonymized private rulings to prevent inconsistent treatment across taxpayers. • Tax Base Concerns: While the IRD achieved record collections in 2025 and is on track to exceed 2026 targets, critics argue higher revenues stem from over-taxing existing taxpayers rather than widening the tax base. This erodes local saving, expenditure, and investment capabilities. • Administrative Bottlenecks: Practitioners highlighted inconsistent technical views among officials, lengthy refund delays, and an over-cautious culture fueling unnecessary litigation. There are urgent calls to upgrade the technical capacity of IRD staff. • Digitalization & Solutions: To improve compliance, tech leaders proposed a taxpayer-centric online platform, open APIs to integrate payment systems with existing point-of-sale infrastructure, and leveraging AI to streamline tax services.

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📈 Port City Mulls Sandbox to Trial Crucial Labour Reforms

The Colombo Port City Economic Commission is considering using the Special Economic Zone (SEZ) as a regulatory sandbox to pilot labour market reforms. Officials argue that rigid employment laws, rather than tax rates, are the primary barrier to entrepreneurship and investment. Key Highlights: • Labour Reform Focus: Rigid hiring and firing rules discourage risk-taking and business restructuring, pushing local talent and entities overseas. Workers' remittances, projected to hit US$ 9 Bn this year, prove Sri Lankans readily adapt to flexible labour regimes abroad. • Tax vs. Stability: Property developers failed to start construction under a 2023 framework offering 25-year tax holidays. However, under a revised September 2025 framework with shorter 10-to-12-year concessions, construction has begun, proving policy certainty outweighs tax holidays. • Investment Momentum: Following a 2025 political transition, investment has accelerated. Ten land parcels are now leased (4 added since Jan 2025). Six active developments represent US$ 500 Mn in investments, with 4 more starting soon. • Current Footprint: Port City has licensed ~185 businesses, occupying 150,000 sq. meters of office space. It employs ~15,000 people, including 8,000 foreign professionals, bolstering the ICT/BPM and services ecosystem. • Land Ownership Clarification: All Port City land remains 100% state-owned and is leased to investors, completely refuting claims of freehold sales to foreign nations.

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📊 Bangladesh Opens Logistics Sector with 100% Foreign Ownership

Bangladesh has scrapped its long-standing cap on foreign ownership for private Inland Container Depots (ICDs) and off-dock facilities to boost foreign direct investment (FDI) and modernise its trade-support infrastructure. • The Policy Shift: Effective 1 July 2026, foreign investors can own 100% of private ICD and off-dock operations. Previously, international operators were restricted to joint ventures with majority local ownership. • Current Capacity: Bangladesh currently has 24 private ICDs with a combined storage capacity of 106,000 TEUs. They handle ~90,000 export, 50,000 import, and 60,000 empty containers monthly. 3 to 4 more ICDs are in the pipeline over the next two years to meet national demand through 2030. • Expected Benefits: The entry of global operators (e.g., DP World, PSA Singapore, APM Terminals) is expected to drive technology transfer, digital integration, automated management systems, and advanced workforce training. • Key Challenges: Industry stakeholders caution that liberalisation alone won't guarantee inflows. Bangladesh must address operational bottlenecks at Chattogram Port, transport infrastructure constraints, manual processing, and unpredictable tariff-setting mechanisms to ensure stable long-term returns. _Context_: This reform is a strategic move to enhance export competitiveness as Bangladesh prepares to graduate from Least Developed Country (LDC) status.

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CBSL Extends Perpetual Treasuries Suspension by 6 Months

• Monetary Authority Action: The Central Bank of Sri Lanka (CBSL) has extended the suspension of Perpetual Treasuries Limited (PTL) from operating as a Primary Dealer. • Timeline: The extension is effective for a further period of six months starting from 4:30 p.m. on 05th July 2026. • Regulatory Context: The decision was made under regulations within the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance. • Objective: The extension has been implemented to facilitate the continuation of ongoing investigations being conducted by the CBSL.

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🐾 Cabinet Approves Rabies Eradication & Dog Registration Bill

The Cabinet of Ministers approved a proposal to merge the Rabies and Dog Registration Ordinances into a unified Bill, aimed at eliminating rabies deaths by 2030 and addressing public safety. • Financial & Medical Impact: Sri Lanka spends over Rs. 5 Billion annually on rabies prevention and control. Animal bites (mostly dogs and cats) make up 70% of accident-related outpatient hospital treatments, marking it a primary cause of emergency medical care. • Progress & Targets: Rabies fatalities dropped from 20 in 2024 to 14 in 2025, with 3 deaths reported in Q1 2026. Eradication targets require continuous vaccination of at least 70% of the island's dog population to halt virus transmission. • Key Provisions: Proposed by Health Minister Dr. Nalinda Jayatissa, the framework mandates rabies vaccinations, improves legal dog registration, tightens population control, and defines the enforcement responsibilities of implementing institutions.

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Appointments & Executive Moves

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CBL Group Appoints Sheamalee Wickramasingha as Group Chairman 📈

• Leadership Transition: Group Managing Director Ms. Sheamalee (Shea) Wickramasingha has been appointed as Chairman of CBL Group effective July 6, 2026. She will dual-serve as Group Managing Director and Chairman, succeeding the late Mr. Ramya Sanath Amaraweera Wickramasingha. • Corporate Legacy: The appointment continues the legacy of CBL’s founder, the late President Emeritus Mineka Wickramasingha, who established the company in 1968. Ms. Wickramasingha, a food technologist who joined Ceylon Biscuits Limited in 1991, has been a board member since 1996 and Group MD for over a decade. • Economic & Sector Footprint: CBL Group is one of Sri Lanka's leading and most diversified food manufacturing conglomerates. The group is a major employment driver, employing more than 7,000 people. • Market & Global Reach: • Portfolio includes market-leading household brands such as Munchee, Ritzbury, Revello, Tiara, Lanka Soy, Samaposha, Sera, and Nutriline. • Operates manufacturing units in Sri Lanka, Ghana, and Indonesia. • Exports products to more than 70 countries worldwide. • Acts as the licensed operator of SPAR supermarkets in Sri Lanka.

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💼 EFC Appoints New Leadership; Commits to Labour Law Reforms & Employment Landscape

The Employers’ Federation of Ceylon (EFC) concluded its 97th AGM, appointing a new leadership team for the 2026/27 financial year to drive national employment policies and responsible business initiatives. • New Leadership: Sanath Manatunge (Managing Director/CEO of Commercial Bank and Chairman of the Sri Lanka Banks’ Association) was appointed as the new EFC Chairman. Dinal Peiris (Group Chairman/Managing Director of Lanka Aluminium Industries PLC) takes over as Vice Chairman. • Strategic Focus: The incoming leadership reaffirmed commitments to actively contribute to upcoming labour law reforms to support future-ready businesses. The federation will focus on collaborating with tripartite stakeholders to strengthen Sri Lanka's broader employment landscape. • Economic & Employment Impact: Entering its 97th year of operation, the EFC acts as the national employers’ organisation and the constituent of the International Labour Organisation (ILO) in Sri Lanka. It currently represents a highly diverse set of industries collectively employing over 800,000 workers across the country.

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📈 Maharaja Foods PLC Restructures Board to Drive Retail Expansion and Governance

Maharaja Foods PLC has announced key strategic changes to its Board of Directors to strengthen corporate governance and accelerate its next phase of growth. Key Leadership Changes: • Imran Furkan has been appointed as the new Chairman. A seasoned corporate leader, he currently serves as CEO of Tresync (Australia) and holds multiple board directorships across the Asia-Pacific region, including in the healthcare, retail, and financial sectors. He is also a former CEO of SLASSCOM (the national chamber for the ICT/BPM sector). • Gimhan Sawinda Rajapaksha Dissanayake joins the board as an Independent Non-Executive Director. He brings entrepreneurial expertise from the tea manufacturing, hospitality, and wellness sectors, with a focus on promoting Sri Lankan products globally. • Guganathan Vijayananth, the outgoing Chairman, transitions to the role of Executive, Non-Independent Director. He will directly spearhead the Group’s retail expansion and new venture developments, leveraging his experience in the logistics and food & beverage industries. • Vithyanath Guganathan continues in his current role as Managing Director, ensuring operational and leadership continuity during this transition. Strategic Context: • The restructuring blends extensive cross-sector board experience with the entrepreneurial drive of the company's founding leadership. The new governance model aims to transition the Group from a family-oriented partnership into dedicated business units focused on long-term value creation.

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GovTech Sri Lanka Appoints Shevan Goonetilleke as CEO 💼

• Executive Appointment: GovTech Sri Lanka Ltd., the state's lead implementation agency for national digital transformation, has appointed Shevan Goonetilleke as Chief Executive Officer, effective 19 August 2026. • Strategic Focus: The appointment marks a key milestone for GovTech as it enters its next execution phase. Under his leadership, the agency aims to accelerate national digital infrastructure, secure interoperable government systems, and advance digital public services to drive Sri Lanka's digital economy vision. • Professional Background: Goonetilleke brings over 25 years of technology leadership and digital platform delivery experience. He previously served as CEO and Executive Director of MillenniumIT ESP. His extensive career in the ICT/BPM sector includes senior roles at WSO2, Deutsche Telekom, and Virtusa. • Industry Contribution: He has actively contributed to Sri Lanka's tech ecosystem via the Sri Lanka Association for Software and Services Companies (SLASSCOM), serving as a former Board Director and Founder of the SLASSCOM Product Council. He holds an MBA from the University of Sheffield and a BSc (Hons) from Manchester Metropolitan University.

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👔 New Director General Appointed to BOI of Sri Lanka

President Anura Kumara Dissanayake has appointed Dr. J.G.L.S. Jayawardena as the new Director General of the Board of Investment of Sri Lanka (BOI), effective this afternoon (1 July 2026). • Key Highlights: • The letter of appointment was formally presented at the Presidential Secretariat by the Secretary to the President, Dr. Nandika Sanath Kumanayake. • Dr. Jayawardena holds a dual institutional role, concurrently serving as the Director General (Corporate Affairs) at the Ministry of Finance, Planning and Economic Development. • Economic Context: • The appointment places Dr. Jayawardena at the helm of Sri Lanka's primary investment promotion agency, which drives foreign direct investment (FDI) into vital economic pillars such as apparel & textiles, ICT/BPM, and manufacturing. His concurrent finance ministry role is expected to support regulatory alignment and streamline investment pipelines.

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📈 Sabrina Esufally Appointed to Hemas Holdings Board

Hemas Holdings PLC has announced the appointment of Sabrina Esufally as an Executive Director to its Board, effective 1 July 2026. • Leadership Transition: Currently serving as the Managing Director of Hemas Consumer Brands and a member of the Group Board of Management, she has held diverse leadership roles across pharmaceutical manufacturing, business development, and innovation since joining the Group in 2019. • Strategic Direction: In her role leading the consumer brands sector—a strategically vital business unit for the Group—she has driven expansion into new consumer segments and strengthened the core brand portfolio, positioning the company for growth in frontier markets. • Professional Background: Prior to Hemas, she was the Head of Legal Research at Verité Research, focusing on governance and public policy. She is an Attorney-at-Law of the Supreme Court of Sri Lanka, holding a First Class Honours degree from the University of Durham, an LL.M. from Harvard Law School, and is an alumna of Harvard Business School.

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📈 Ameena Ziauddin Appointed President of Council for Business with Britain (CBB)

The CBB, under The Ceylon Chamber of Commerce, held its 26th AGM to foster trade and investment ties between Sri Lanka and the UK. • New Leadership: Ameena Ziauddin (Norfolk Foods) elected President for 2026–2027. Supported by Senior VP Shiluka Goonewardene (KPMG) and VP Fadhil Jiffry (LSEG). • UK-SL Trade: High Commissioner Andrew Patrick highlighted the benefits of the Developing Countries Trading Scheme (DCTS). • Market Access: The DCTS provides zero-tariff access for Sri Lankan exports, with January 2026 reforms specifically boosting the apparel & textiles sector's competitiveness. • Growth Drivers: Increased British tourist arrivals and improved aviation connectivity were cited as key factors strengthening commercial linkages. • Strategic Focus: The outgoing committee emphasized the success of the NextGen and SME platform, aimed at empowering young professionals and entrepreneurs to drive future economic collaboration. The council remains committed to leveraging trade schemes to diversify exports and deepen the economic partnership between the two nations.

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Duminda Hulangamuwa Appointed New BOI Chairman 📈

• Overall Appointments: President Anura Kumara Dissanayake officially appointed Presidential Senior Economic Adviser Duminda Hulangamuwa as the new Chairman and member of the Board of Investment (BOI) of Sri Lanka on June 30, 2026. • New Board Composition: Alongside the Chairman, four new members were appointed to the BOI board to drive foreign investment into key national sectors like apparel & textiles, ICT/BPM, and infrastructure: • Vish Govindasamy • Harshani Randiligama • Mangala Karunaratne • K. A. Vimalenthirarajah • Official Handover: The letters of appointment were formally presented this afternoon at the Presidential Secretariat by the Secretary to the President, Dr. Nandika Sanath Kumanayake.

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📈 SDB Bank Announces CEO Transition for October 2026

• Executive Departure: SANASA Development Bank PLC (SDB bank) announced that Executive Director/CEO Kapila Ariyaratne will step down from his position and cease to serve on the Board of Directors, effective 6 October 2026, upon completion of his contractual arrangement. • Succession Plan: In line with the bank's approved succession plan, Manoj Akmeemana (currently Deputy CEO) will succeed as Chief Executive Officer, effective 7 October 2026, subject to Central Bank of Sri Lanka approval. • Incoming CEO Profile: Manoj Akmeemana joined SDB bank as Deputy CEO in January 2026. He brings over 35 years of experience in the financial services sector, having previously held senior leadership roles at Sampath Bank PLC, including Senior Deputy General Manager specializing in credit control, risk, and operational oversight. • Outgoing CEO Profile: Kapila Ariyaratne, who joined SDB bank as CEO in October 2024, concludes a key tenure. He previously served as Director/CEO of Seylan Bank PLC for over a decade and held roles across multiple local and international institutions, including Nations Trust Bank PLC and People’s Bank PLC.

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📈 Leadership Transition at EY Sri Lanka and Maldives: Gayathri Manatunga Appointed New Country Managing Partner

• Executive Transition: EY Sri Lanka and the Maldives has announced that Country Managing Partner (CMP) Duminda Hulangamuwa will retire on 30 June 2026, concluding an exceptional 42-year career with the firm. • New Appointment: Gayathri Manatunga will succeed him as the new CMP, effective 1 July 2026. • Outgoing Legacy: Hulangamuwa joined EY in 1984, later serving as Head of Tax in 2012 where he expanded key service lines, and assumed the CMP role in 2023. He played a significant role in fiscal policy and private-public sector engagement in the professional services domain. • Incoming Leadership: Manatunga, currently the Head of Assurance for EY Sri Lanka and the Maldives, brings over three decades of experience. She is highly respected within the banking and financial services sector, having spearheaded high-profile audits for multinationals and major locally listed groups. • Future Outlook: Manatunga's appointment is expected to drive EY's next phase of growth with a focus on strategic insight, quality, and a people-first culture.

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📈 New CIMA President to Focus on Trust and Innovation in Finance Sector

• Alfred Ramosedi has been elected as the 93rd President of The Chartered Institute of Management Accountants (CIMA) and the 11th Co-Chair of the Association of International Certified Professional Accountants, effective 24 June 2026. Dr. Matthew Hansard was elected as CIMA Deputy President. • Key Priorities: The new leadership will focus on building an AI-enabled profession, elevating trust, and championing opportunities for next-generation talent to navigate rapid business transformations. • Regional Impact: AICPA & CIMA Regional Vice President for Asia Pacific, Venkkat Ramanan, noted that Ramosedi’s leadership comes during a period of rapid change for APAC businesses. Ramosedi is scheduled to visit Singapore and Kuala Lumpur in August 2026 to engage with regional stakeholders and CIMA’s Regional Engagement Groups (REG). • Professional Background: Ramosedi brings over 30 years of South African financial services experience, having held executive roles at Nedbank, ABSA Bank, African Bank, and as CEO of Bayport Financial Services. He has been a CIMA volunteer since 1998 and was awarded the CIMA Silver Medal in 2013.

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💼 BOI Director General Renuka Weerakone Retires After 32 Years of Service

• Institutional Milestone: Mrs. Renuka M. Weerakone relinquishes her position as Director General of the Board of Investment (BOI) of Sri Lanka today, 25 June 2026, marking the end of over three decades of unbroken service. • Career Trajectory: Having joined the BOI on 1 June 1994 as an Assistant Manager (Legal), she rose through nearly every tier of the organization—including roles in investment promotion, project monitoring, and appraisal—before becoming Director General. • Key Economic Contributions: • Led outward investment promotion missions to global markets and represented Sri Lanka in high-level trade negotiations to secure foreign direct investment (FDI). • Served on critical project approval committees spanning power, education, and environment. • Resolved investor friction and improved implementation efficiency through inter-agency task forces. • Broader Leadership: Extended her influence across Sri Lanka's trade ecosystem as a Board Member of the Export Development Board (EDB) and the International Chamber of Commerce (ICC) Sri Lanka. • Recognition: Awarded the "Women in Investment and International Trade Leadership" title at the Top50 Professional & Career Women Global Awards in 2025. _Reflecting on her retirement, Mrs. Weerakone emphasized that the strength of a nation lies in the "resilience, continuity, and integrity of its administrative backbone."_

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Real Estate

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📈 Premium Condominium Sales Above Rs. 50 Mn Lead Colombo Market in Q1 2026

The Colombo District condominium market in Q1 2026 showed a clear shift toward luxury segments despite a broader slowdown in transaction volumes, based on provisional data. • Overall Market Activity & Prices • The Price Index for New Condominiums in Colombo reached 284.4, an 18.5% YoY increase. • The Sales Volume Index decreased by 15.2% YoY, indicating cooling market activity. • Land asking prices in Colombo surged by 31.9% YoY, while housing and condo asking prices rose 6.4% and 11.0% respectively. • Sector & Price Breakdowns • Luxury Units (Above Rs. 75 Mn): Market share grew sharply to 29%, up from 11% a year ago. • Premium Units (Rs. 50 Mn - Rs. 75 Mn): Share edged up slightly to 23% from 22%. • Mid-Range Units (Rs. 25 Mn - Rs. 50 Mn): Share dropped significantly to 29% from 49% a year prior. • Affordable Units (Below Rs. 25 Mn): Stood relatively stable at 19% vs 18% YoY. • Regional Metrics • Colombo remains the primary hub, commanding 65% of total sales transactions. • Single condo projects in Colombo accounted for 59% of transactions, followed by Gampaha and Kalutara districts at 32%. • Inventory & Buyer Demographics • Inventory: Completed projects are nearly exhausted, with 98% of units sold. Ongoing projects have 51% of units pre-reserved. • Funding: Resident Sri Lankans remain the primary buyers, largely purchasing for immediate occupancy. Notably, 80% of transactions were financed using own funds over bank loans. • Development: Pre-sale deposits continue to be the main funding source for developers, contributing 48% of development capital.

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📈 Rs. 4 Bn JAT Astera Residencies Breaks Ground in Thalawathugoda

The Design Consortium International (DCIL) has officially commenced construction on JAT Astera Residencies, a premier Rs. 4 billion luxury residential development located in Thalawathugoda. • Project Overview: The 12-storey luxury apartment complex will feature 104 apartments and six penthouses. Piling work started last week via Sincon Piling, kicking off the construction phase for the project developed by JAT Living. • Design & Pricing: Unit sizes begin at just under 1,200 sq. ft., with residences priced from Rs. 49 million upwards. The architectural layout ensures every bedroom features a private balcony overlooking uninterrupted paddy field views. • Key Amenities: Features a massive 14,000 sq. ft. landscaped rooftop communal space including an amphitheatre, green areas, and a movement zone. The construction & real estate project also incorporates a swimming pool, gymnasium with a sauna, a 630 KVA generator for 100% backup power, and rainwater harvesting infrastructure. • Industry Context: Designed by DCIL, a fully integrated Sri Lankan architectural and engineering firm founded in 1987. The project represents continued high-end investment within Sri Lanka's suburban real estate and modern urban development sectors.

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🏗️ CHEC Commences Construction of Home Lands Skyline’s Pentara Residencies in Colombo 05

The China Harbour Engineering Company (CHEC) has officially commenced construction on Pentara Residencies by Home Lands Skyline following a ceremonial groundbreaking ceremony. The project marks a major addition to Colombo's high-rise residential landscape. Key Project Highlights: • Development Structure: A premium twin-tower super high-rise development consisting of one 31-storey tower and one 41-storey tower. • Scale: The project spans a total gross floor area of approximately 87,000 square metres. • Location: Situated in Colombo 05, approximately 4 km from Colombo City Centre, 7.4 km from the Port of Colombo Container Terminal, and 35 km from the Bandaranaike International Airport. Economic & Industry Impact: • Construction & Infrastructure: Global engineering giant CHEC is serving as the main construction partner, deploying its large-scale high-rise expertise to meet international construction standards. • Economic Contribution: The commencement of construction is expected to stimulate regional economic activity, driving supplier participation, local industrial engagement, and employment generation. • Urban Development: The project enhances Colombo's vertical living infrastructure, reflecting continued stakeholder confidence and collaboration between international contractors and local real estate developers.

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📈 Real Estate: Prime Lands Breaks Ground on Kalutara’s First Gated Community

• Overall Project: Prime Lands has officially commenced construction on ‘Kaloora’, marking the first-ever master-planned gated residential community in Kalutara. The project is being constructed by the group's engineering arm, Prime Constructions Ltd., highlighting Kalutara's emergence as one of Sri Lanka’s fastest-growing residential destinations outside Colombo. • Strategic Value & Infrastructure: The development targets the growing demand for modern housing, focusing on long-term investment value and regional development. Key connectivity points include: • 5 minutes from Kalutara Town • 800 metres from Nagoda Hospital • 15 minutes from the Dodangoda Highway entrance • Amenities & Market Impact: The project introduces Colombo-style luxury amenities to the region to elevate contemporary living standards. According to Prime Lands CEO Ruminda Randeniya, the project introduces flexible payment plans to improve affordability for local families. Inside the secure perimeter, the community features a swimming pool, fully equipped gymnasium, children’s play area, indoor cricket facility, and a multifunctional room under 24-hour security. _Note: Based on official corporate project launch data._

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📈 Plans Accelerated for 'Temple City' Tourism Project in Colombo

The Sri Lankan government has fast-tracked discussions for the proposed 'Temple City' development project, aiming to transform the area surrounding Beira Lake into a premier international tourism and cultural destination. • Core Project Objective: Spearheaded by the Urban Development Authority (UDA) and guided by the Hunupitiya Gangaramaya Temple, the initiative seeks to leverage the site's immense cultural and tourism potential to elevate Colombo's global appeal. • Key Development Features: Plans focus heavily on landscaping, environmental beautification, and enhanced infrastructure. This includes building a dedicated pedestrian walkway around Beira Lake to provide seamless mobility for both local and international visitors. • Execution & Timeline: At a high-level stakeholder meeting chaired by the Secretary to the President, officials emphasized strict inter-institutional coordination to ensure the project is implemented expeditiously. • Stakeholder Involvement: The initiative brings together key state and religious entities, including the Chief Incumbent of the temple, the Prime Minister’s Secretariat, the UDA, the Colombo Municipal Council, and the Sri Lanka Tourism Promotion Bureau.

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🏗️ Home Lands Breaks Ground on Central Park Boulevard in Port City Colombo

Home Lands Group has officially commenced construction on “Central Park Boulevard Port City Colombo,” marking a major milestone for Sri Lanka's real estate and construction sectors. • The Project: An ultra-luxury twin-tower landmark development located in the prestigious Central Park District of Port City Colombo. The project integrates high-rise living with a 40-acre modern parkland featuring landscaped gardens and waterways. • Key Features: The development will house a collection of premium residences, including deluxe apartments, sky villas, penthouses, and exclusive Emerald Mansions, alongside world-class amenities. • Timeline & Scale: Construction is scheduled for completion within 40 months. The independent execution highlights Home Lands' financial strength and track record, having already delivered over 3,750 homes across Sri Lanka. • Economic Impact: Positioned as "The Indian Ocean’s Next Wonder," the project aims to elevate Sri Lanka as a premier regional real estate investment destination, drawing strong interest from both local and overseas investors during its recent grand launch.

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🌊 Special Cabinet Committee to Tackle Land Encroachment and Coastal Damage in East

The Cabinet has approved a special committee and enforcement measures to address illegal land grabbing, unauthorised coastal developments, and land disputes in the Eastern Province. • Core Initiative: Appointment of a dedicated committee titled "Protecting Eastern Province Lands," chaired by Senaka Palliyaguruge, to resolve longstanding land-related conflicts and strengthen state institutional coordination. • Enforcement & Security: A special police unit led by a Deputy Inspector General (DIG) will be established. Security forces will receive full powers to halt politically motivated, unauthorised land acquisitions and reclamation. • Land Reclamation: Land allocated by the Sri Lanka Mahaweli Authority over 5 years ago that remains undeveloped will be repossessed. These lands will be transferred to Divisional Secretaries to facilitate local development. • Coastal & Tourism Impact: Unauthorised structures have accelerated environmental degradation and soil erosion. A formal plan will be designed to promote coastal tourism while protecting ecosystems and ensuring transparent legal enforcement for hotel operations. • Socio-Economic Context: Based on official briefings, the lack of a comprehensive resettlement program 16 years post-civil war and administrative inconsistencies continue to hinder regional development and impact national security.

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📈 Home Lands Expands Footprint in Port City Colombo

Home Lands Group has further solidified its commitment to the real estate sector by acquiring a second land parcel within the Central Park District of Port City Colombo. • Expansion Details: The new acquisition spans over three acres, located adjacent to the previously purchased site for the Central Park Boulevard project. • Investment Strategy: The deal was executed as a single-developer investment, underscoring the group's financial stability and independent development capacity. • Strategic Context: This marks the second major acquisition by Home Lands in the district within three months, reflecting strong investor confidence in the Port City's long-term potential as a premier urban and business destination. • Economic Impact: As a key player in the real estate and urban development landscape, Home Lands' continued investment supports the transformation of Port City into a hub for global business and sustainable living. This expansion reinforces the company’s role in driving large-scale, high-end infrastructure projects, contributing to Sri Lanka’s evolving international investment profile.

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Cabinet Reallocates 408 Housing Units for Flood Victims & Pipeline Residents 🏠

• Overall Figures: The Cabinet approved the reallocation of 408 unused housing units originally acquired by the Road Development Authority (RDA) for the now-suspended New Kelani Bridge to Athurugiriya elevated expressway project. • Sector & Project Breakdown: • Flood Relief: 336 units at the Sanhinda Sevana complex in Kolonnawa will resettle families in highly vulnerable, repeatedly flood-prone urban zones. • Infrastructure Safety: 72 units at the Helamuthu Sevana complex in Henamulla will relocate non-title occupants living along a high-risk underground petroleum pipeline corridor operated by the Ceylon Petroleum Corporation (CPC). • National Context: The RDA had initially purchased 1,100 units across three complexes from the Urban Development Authority (UDA). Following a Court of Appeal enjoining order that suspended Phase II of the expressway project, the government redirected this idle inventory to address urgent urban resettlement and public safety challenges.

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📈 NovaNest Properties Launches 234-Unit Rainbow Apartments in Ratmalana

NovaNest Properties Private Limited, the real estate arm of Nawaloka Holdings, has officially launched Rainbow Apartments, a major 234-unit residential development in Ratmalana, aimed at boosting urban living and construction sector standard benchmarks. • Project Scope & Location: A landmark 234-unit modern residential complex strategically located in Ratmalana, offering connectivity to Colombo and key commercial hubs for professionals, investors, and expatriates. • Key Features & Amenities: Features one of Sri Lanka’s largest residential rooftop lifestyle zones, including a jogging track, pools, gym, co-working spaces, daycare, and an elder activity zone to support diverse employment and family needs. • Healthcare Integration: Backed by Nawaloka Hospitals PLC, the property integrates a fully equipped medical centre, 24-hour ambulance services, and an in-apartment Nurse Call System for emergency assistance. • Investment & Financing: Targeted as a high-value investment opportunity. To facilitate local and international buyers, NovaNest has partnered with leading banks to offer tailored financial solutions, foreign employee payment plans, and four interest-free payment options.

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Prime Residencies Launches Ultra-Luxury 'THE GOLF' Project in Colombo 08 📈

• Overall Project: Prime Residencies, a subsidiary of Prime Group, officially commenced construction of its boutique ultra-luxury residential project, "THE GOLF," on Lake Drive, Colombo 08. The development is part of the company's elite 'One Collection'. • Real Estate & Construction Details: The boutique development features 11 residential floors consisting of 66 curated two- and three-bedroom apartments. Located bordering the Royal Colombo Golf Club, structural work has started on a pile foundation executed by K.D. Piling (Pvt) Limited. • Market Value & Demand: Units within the luxury complex are priced starting from LKR 95.7 Mn upwards. Discerning local and foreign buyers have already reserved a significant majority of the units during the pre-launch phase, reflecting strong demand in Sri Lanka's high-end property sector. • Economic Context: This premium construction venture aligns with urban development trends in the capital, catering to high-net-worth individuals and enhancing property & construction infrastructure in highly sought-after commercial hubs.

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📈 Prime & Melwa Become Largest Port City Investors with 3rd Marina Acquisition

• Strategic Acquisition: Prime Group and Melwa Group have acquired their third and most coveted land parcel in the Marina District, raising their combined holding to approximately 16 acres. This establishes the partnership as the largest property investor in Port City Colombo. • The Marina District: Accounting for only around 1% of the entire Port City, this highly exclusive district is set to be completed within the next five years, outpacing other development areas. • Development Scope: Based on provisional data, the newly acquired parcel will be developed as a mixed-use project, adding to the partnership’s growing waterfront footprint. This follows the launch of their first project, Prime Marina, on June 10, which reported record-breaking sales from local and overseas buyers. • Economic Impact: The multi-acre concentration positions the joint venture at the forefront of the real estate & construction sector, driving luxury property development and aiming to position Colombo as a rising destination for global property investment.

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Politics & Government Impact

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📈 CPC Responds to Verité Research on Fuel Pricing Claims

• Context: The Ceylon Petroleum Corporation (CPC) Chairman has issued a formal right of reply responding to a recent Verité Research column published in the Daily FT, which claimed Sri Lanka's fuel was "both overpriced and under-priced." • Key Disputes: CPC strongly refuted statements alleging that the corporation suffered losses due to paying "unduly and unjustifiably higher than average global market prices" and that private competitors were bypassing middleman profiteers. • Official Position: The CPC Chairman stated these claims are factually incorrect, unverified, and lack supporting data. He clarified that government fuel subsidies and pricing decisions are uniformly applied across all licensed fuel marketing companies in Sri Lanka. • Current Status: Based on official correspondence, CPC has requested a factual review and a correction from the publication to prevent public distortion regarding the national energy sector's regulatory and pricing mechanisms.

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📈 Govt. Failing to Implement Growth Plans, Says Dinouk Colombage

United National Party (UNP) Working Committee Member Dinouk Colombage stated that the National People’s Power (NPP) Government has abandoned the economic recovery and growth strategy initiated by former President Ranil Wickremesinghe in 2022. • Policy Shift: While the NPP Government initially followed the stabilization plan, Colombage claims they have failed to combine it with a viable growth plan, turning the IMF program into a standalone stabilization initiative. • Key Indicators: • Inflation: Has risen well above 6%, failing to hit the previous growth plan's target of remaining below 3%. • Currency: The Sri Lankan Rupee has continued to depreciate under the current administration, contrasting with the previous objective of currency appreciation. • National Impact: Colombage raised concerns over the country's financial preparedness to repay debt while simultaneously reducing poverty levels and increasing public income.

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🚨 Negombo Prison Violence: Opposition Leader Demands Independent Probe

Opposition Leader Sajith Premadasa has held the Government and President Anura Kumara Dissanayake responsible for recent deadly clashes at Negombo Prison, citing an institutional failure within the prison administration. Key Details: • Casualties: The violence has resulted in at least 25 deaths and multiple injuries, according to statements from the Opposition. • Accountability: Premadasa called on the current administration to uphold its own past standards from its time in the opposition, where it argued that the ruling government must accept full responsibility for prison deaths. • Governance Concerns: The incident was highlighted as an exposure of critical weaknesses in governance, law enforcement, and prison management, challenging the government's promised "system change." • Demands: The Opposition is demanding an independent, impartial, and transparent investigation, explicitly rejecting any government-appointed committee that might produce a biased report. Urgent prison and security reforms have been requested.

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📈 US Marks 250th Independence Anniversary Amid Global Market Impacts

• Overall Economic Power: The US remains the world's largest economy by nominal GDP, generating approximately 26% of global economic output. The US dollar continues to maintain its dominance as the foremost global reserve currency. • Energy & Global Markets: A recent peace deal resolving the Persian Gulf war has triggered ripples across global financial capitals and energy markets. This deal brings relief to weaker energy-dependent nations that were severely impacted by the conflict. The US cushions global shocks using its strategic petroleum reserve of around 700 million barrels. • Sector Breakdowns & Market Challenges: - Manufacturing & Shipbuilding: The US commercial shipbuilding industry has declined due to intense competition from China and South Korea. The US currently constructs less than 1% of commercial ships globally, compared to China's 50%. An Executive Order has been issued to revive this labor-intensive sector, targeting funding, competitiveness, and workforce training. - Civil Aviation: The sector remains a vibrant pillar of the economy, spanning over 20,000 airports. Major commercial breakthroughs include securing an order for 200 Boeing aircraft in China and US$ 600 Bn worth of orders in Saudi Arabia. - Macro Risks: The broader economy faces headwinds from cyber-crimes, a severe talent and workforce gap, inflation, and fluctuating energy costs. • National Context & Comparison: While the US handles highly sensitive political battles over "redistricting" (electoral boundary re-demarcation), the text notes that Sri Lanka experiences very few legal challenges brought before its Supreme Court regarding its own "delimitation" process.

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📈 Sri Lankan Officialdom & State Corruption Highlighted in KC Saga

• Overview of the Institutional Crisis: Recent commentary on the Kapila Chandrasena (KC) case emphasizes severe structural weaknesses within Sri Lanka's public sector. Key issues highlight systemic deficiencies in state reporting, political patronage, and widespread institutional corruption. • Data Integrity & Official Competence: Independent observations from external advisers criticize the reliability of official data, research, and cabinet papers. Sri Lankan state structures are described as displaying "disjointed, inconsistent, and incomplete writing," heavily driven by an oral culture that often masks severe operational inefficiencies with inaccurate, overly optimistic statistics. • High-Level Corruption & State Entities: The late Kapila Chandrasena, former CEO of SriLankan Airlines, Mihin Air, Mobitel, and Sri Lanka Telecom, remains central to a major international bribery scandal. Investigations revealed that Airbus paid bribes to secure aircraft purchases—a decision involving multi-billion rupee state commitments that went far beyond individual CEO authority. • Financial Impact & Accountability: The scandal illustrates the ongoing drain on national finances through heavily indebted state enterprises. The transition of key officials from modest backgrounds to elite assets highlights a lack of oversight by national tax and regulatory bodies regarding sudden wealth accumulation while in public service. _Note: This analysis is based on qualitative observations and provisional reporting surrounding ongoing social and state institutional investigations._

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📈 Book Launch: Unravelling ‘Manal Aru/Weli Oya’

A new book by Urs Geiser and Benedikt Korf (2026), published by the Social Scientists Association, provides critical insights for national policy makers on the intersection of land development and ethnic politics in Sri Lanka. • Overall Scope: Grounded in ethnographic research by the late Prof. Hasbullah, the study examines the contentious history of frontier colonisation, river valley development, and high militarisation in the North East region (bordering Trincomalee, Mullaitivu, and Vavuniya districts). • Key Findings & Context: • _Evolution of Development_: Post-independence river valley development initially focused on agrarian expansion, but gradually translated into narrative frameworks promoting a past hydraulic civilization. • _Militarisation & Land Claims_: Documents how "frontier struggles" continue to shape the landscape decades before and after the civil war, highlighting high security restrictions impacting research access up until recent post-war years. • _Data Gaps_: The authors note that primary data on pre-colonial and early post-colonial land use remains scarce and scattered, with many secondary sources heavily influenced by ethno-nationalist perspectives. • Methodology: Combines geographical mapping of administrative boundaries with archival data and field work conducted post-war to analyze shifting livelihoods and state majoritarian political discourse.

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📰 Govt Media Officers’ Role Under Scrutiny Over Grassroot Issues

• Public Sector Efficiency: A recent critique highlights that despite an over-staffed state machinery, including numerous development and media officers, official media monitoring remains highly ineffective. • Grassroot Realities Unaddressed: State officials, including ministerial coordinators and media secretaries, frequently fail to acknowledge or act upon investigative press reports detailing critical rural and regional issues. • Economic Sectors Affected: Neglecting media coverage directly impacts key revenue-generating areas. For example, unaddressed cleanliness issues undermine tourism, a vital source of foreign exchange, while unresolved transport deficits hamper agriculture/agrarian sectors in rural areas. • Call for Strategic Realignment: The report emphasizes that state investment must shift from purely physical infrastructure to human capital. State representatives and development officers must directly experience local hardships to effectively drive national development and grassroot entrepreneurship.

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⚖️ Court of Appeal Dismisses Yoshitha Rajapaksa’s Petition in Money Laundering Case

The Court of Appeal has dismissed a revision petition filed by Yoshitha Rajapaksa, allowing a conspiracy charge against him to proceed. • Legal Ruling: A two-judge Bench comprising Justices Amal Ranaraja and Dr. Sumudu Premachandra rejected Rajapaksa’s petition, which challenged the legal maintainability of the conspiracy charge. • The Core Case: The charge was brought by the Attorney General under the Prevention of Money Laundering Act and is part of an ongoing money laundering indictment before the Colombo High Court. • Next Steps: Following the Appeal Court’s dismissal, the legal proceedings against Rajapaksa are set to continue in the Colombo High Court.

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🗳️ 25% Women’s Quota Proposed for Sri Lankan Provincial Councils

A Parliamentary Select Committee on electoral reforms, chaired by Minister Vijitha Herath, has discussed legally guaranteeing that women account for at least 25% to 33% of the total membership in Provincial Councils. The meeting with the Women Parliamentarians’ Caucus focused on elevating female and youth representation in future local governance. • Key Representation Proposals: The Caucus argued for a mandatory seat allocation rather than just candidate list inclusion. Discussions included mechanisms to ensure a minimum 25% or alternate 33% female composition in the overall councils. • Electoral System Adjustments: Proposals include making female and youth inclusion mandatory on candidate lists if proportional representation returns, introducing specific constituencies reserved for women, and resolving legal hurdles in constituency delimitation to support a mixed electoral system. • Youth & Implementation Focus: The framework actively prioritizes strengthening youth representation and underscores the critical need to hold the long-delayed Provincial Council elections without further postponement. _Provisional Note: These proposals are being reviewed for inclusion in the Select Committee's final report on the future electoral system._

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COPA Flags Rs. 212m School Textbook Printing Irregularities 📄

The Committee on Public Accounts (COPA) has exposed major, long-standing financial and operational issues within the Department of Educational Publications during a review of reports from 2021 to 2024. • Financial Irregularities: A massive Rs. 212 million financial irregularity dating back to 2002 remains unresolved. The involved printing contractor and its directors currently cannot be traced. The case is under active investigation by CIABOC (Commission to Investigate Allegations of Bribery or Corruption). • Legal Delays: Legal action to recover compensation from a separate printing house that delayed textbook deliveries in 2006 faces severe delays. • Inefficiencies: Inaccurate school textbook requirement estimates have led to massive surplus stocks and inflated transport costs, directly draining public funds meant for the education sector. • Systemic Reforms: To address these gaps and prevent future losses, officials have launched sweeping structural reforms. A new computerized database was introduced in 2024 to track school enrollments, textbook inventories, and reusable materials. • Tech Modernization: Future updates include fully automated procurement, warehouse management, and distribution networks. Furthermore, the ICT/BPM capabilities of the sector will be boosted by upgrading the e-Thaksalawa digital learning platform using Artificial Intelligence (AI) technology to guarantee higher transparency and strict quality control.

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⚖️ Sri Lanka Needs Moral Courage & Non-Selective Accountability

An analysis of Sri Lanka's governance landscape highlights the critical need for systemic reform, institutional integrity, and an uncompromised rule of law to rebuild the national economy. • The Core Issue: The erosion of public trust, institutional credibility, and the accumulation of national debt are directly linked to a culture of corruption, political deal-making, and abuse of power by those in authority rather than systemic failures by ordinary citizens. • Legal & Institutional Reform: True national transformation requires fearlessness within regulatory and legal frameworks. Professionals, particularly senior legal counsel and public servants, must uphold institutional integrity over situational ethics. • Accountability Benchmarks: Economic stability and public trust depend heavily on an equal application of the law. Key governance targets include moving away from selective accountability and actively investigating high-level influencers and political insiders ("the big fish") regardless of party affiliation. • Economic Impact: Rebuilding Sri Lanka's global standing and economic framework requires an absolute end to normalized corruption and political patronage, which have historically deterred clean investment and drained state resources.

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Is Pax Americana in Decline? Lessons From Ancient Rome 🏛️

A comprehensive historical and geopolitical analysis explores whether the United States is facing structural decline, comparing its current global position to the protracted fraying of the Roman Empire. • Global Stature & Pillars: The post-1945 international order (Pax Americana) was built on asymmetric capabilities, including naval supremacy, the US Dollar as the global reserve currency, NATO, and soft power. While the US remains the most powerful nation in history—dominating technology, advanced research, and global military reach—it faces severe stress under the burdens of primacy. • The Primacy Strain: Adhering to the concept of "imperial overstretch," decades of asymmetric conflicts (Korea, Vietnam, Iraq, Afghanistan, and recent interventions in the Middle East) have cumulatively corroded strategic clarity and undermined the US's moral imperatives and monopoly as the sole global superpower. • Internal & External Friction: Internally, the US exhibits parallels to the late Roman Republic, including institutional mistrust, elite factionalism, legislative gridlock, and polarization. Externally, it faces a highly complex, multipolar challenge from China, which competes through economic scale, supply chain integration, and advanced technologies like artificial intelligence, rather than traditional ideological warfare. • The Outlook: Counterarguments from scholars emphasize American resilience, noting its unmatched productivity, frontier innovation, and attractive soft power. The analysis concludes that the US is likely not facing a sudden collapse, but rather a phase of "twilight"—a period of strategic recalibration, constraint, and structural adjustment.

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Startups & Entrepreneurship

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📈 Over 250 Gather for Kalutara Business & Investment Summit

Lanka Business TV’s eighth island-wide "Vyavasayaka" Business and Investment Summit concluded with significant public response at the Jie Jie Beach Hotel in Panadura. The initiative focuses on bridging the economic knowledge gap for local entrepreneurs. • Key Highlights: • Participation: Over 250 attendees, including existing entrepreneurs and individuals seeking economic literacy. • Expert Insights: Keynote address delivered by Dr. Chaminda Weerasiriwardena, with guest lectures and corporate presentations focusing on wealth management (NDB Wealth), cybersecurity (Sri Lanka CERT), and real estate/asset management (John Keells Properties). • National Expansion: The Kalutara event marks the 8th district-level summit held across Sri Lanka. • Future Outlook: Lanka Business TV announced ongoing arrangements to expand the initiative further into the Kandy and Kurunegala districts later in 2026 to support regional economic integration.

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🚕 HelaGo Surpasses 1 Mn Kilometres in Just Five Months

Locally developed ride-hailing service HelaGo, a partnership between digital pioneer Helakuru and the David Pieris Group, has completed over 1 million kilometres within five months of its January 6, 2026 launch. • Platform Growth: The service has attracted over 80,000 drivers alongside a rapidly growing passenger base, initially operating across the Western Province. • Innovative Pricing: To address fare disputes, the platform introduced a unique fare negotiation system alongside central pricing, allowing drivers to propose fares and passengers to choose based on price, rating, and vehicle type. • Key Features: Includes an Auto Booking facility for urgent travel and integrated safety technologies for secure rides. • Future Expansion: Committed to maintaining a local identity, HelaGo is preparing to expand its transparent transportation services to other regions across Sri Lanka.

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📈 National Conference Focuses on Strengthening Sri Lanka's MSME Sector

• Strategic Collaboration: The National Enterprise Development Authority (NEDA), operating under the Ministry of Industry and Entrepreneurship Development, collaborated with the University of Peradeniya to host a national conference dedicated to empowering the country's Micro, Small, and Medium Enterprises (MSMEs) sector. • National Context: The initiative underscores a coordinated effort between state development authorities and academia to fortify MSMEs, which serve as a critical pillar for economic resilience, local employment, and industrial diversification across Sri Lanka. _Note: Based on initial provisional reporting._

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📈 LIIN Empowers Over 150 Northern Province Women Entrepreneurs at Emerging Women Summit

The Lanka Impact Investing Network (LIIN) hosted the landmark Emerging Women Summit in Kilinochchi under the theme “Unlocking Markets and Capital for Women Entrepreneurs in Northern Province.” Funded by Global Affairs Canada and implemented alongside WUSC, the event aimed to drive regional resilience and inclusive economic growth. • Overall Participation: Over 200 stakeholders attended, including more than 150 women entrepreneurs alongside government officials, financial institutions, and private sector representatives. • Financing & Growth: High-level discussions targeted access to finance and financial readiness. Industry experts from the Export Development Board and DFCC Bank addressed critical themes including financial literacy, business registration, tax compliance, and building corporate credibility. • Market Access & Branding: Panels focused on expanding small enterprises into national and export avenues, highlighting the necessity of digital marketing, product quality, packaging, and meeting buyer expectations. • Sectors & Local Production: • A vibrant marketplace featured over 40 stalls showcasing handicrafts, clothing, jewellery, and locally produced food and beverages. • An Entrepreneurs Fashion Ramp spotlighted creations from more than 25 women entrepreneurs to enhance product visibility and market exposure. • Key Stakeholders Involved: Institutional support was backed by the Department of Industries, Industrial Development Board, NEDA, University of Jaffna, Commercial Bank, and several regional chambers. Organisers reaffirmed long-term commitment through the GRIT Project to continue capacity-building, expand access to capital, and develop sustainable market linkages for women-led businesses in the region.

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📈 Navigating Bank Financing for Sri Lankan SMEs

The SME sector is a critical pillar of Sri Lanka's national context, generating over 50% of the country’s GDP and driving employment and sustainable growth. Despite enormous year-on-year credit growth in the banking sector, limited access to finance remains a primary obstacle for small businesses. • Overall Dynamics & Bank Risks Banks act as financial intermediaries, balancing depositor safety with lending risks. Financial institutions face high default risks with first-time entrepreneurs due to weak market conditions, continuous working capital losses, or the diversion of funds. • Key Areas of Bank Assessment To secure approval and avoid lengthy processing delays, SME borrowers must provide transparent documentation proving: Real loan size requirements and market potential. Profitability and detailed cash flow history/projections. Personal and business credit history via a Credit Information Bureau (CRIB) report. Borrower character and available collateral. • Available Credit Facilities Sri Lankan banks primarily offer three financing options tailored to varying business lifecycles: Overdrafts Term loans Revolving credit facilities (RCFs) • Strategies for SME Borrowers Applicants should compare interest rates, repayment periods, and flexibility across lenders. Building a successful, long-term relationship requires proactive communication, absolute transparency regarding financial losses, and regular data sharing to establish credibility with account managers.

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📈 Union Bank Launches Phase 3 of National Entrepreneurship Development Program

• Overview: Union Bank has commenced the third phase of its National Entrepreneurship Development Program (NEDP). Launched in 2024, the program is a public-private partnership with the University of Moratuwa and the National Innovation Agency (NIA) aimed at boosting SME development. • Key Highlights: • Over 200 existing and potential business owners are participating in the current phase. • The program reported expanded nationwide reach, including an increase in participants from the Northern region of Sri Lanka. • Designed as a free initiative under the Union Bank School of Social Entrepreneurship, it focuses on upskilling entrepreneurs and supporting viable startup ideas through knowledge, innovation, and financial guidance.

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🤝 National SME Revival Program Launched to Boost Sri Lankan MSMEs

The Sri Lanka Chamber of Small and Medium Industries (SLCSMI) and the National Chamber of Commerce of Sri Lanka (NCCSL) have jointly announced a collaborative forum to address the growth, sustainability, and competitive challenges of micro, small, and medium enterprises (MSMEs). • Program Details: Scheduled for 16 June 2026 from 2:00 p.m. to 5:00 p.m. at the National Chamber of Commerce Auditorium in Colombo 10. • Core Focus: Engaging cross-sector regional MSMEs in strategic dialogue to improve local competitiveness and expand their reach into global markets. • Economic Context: The initiative targets the MSME sector, which forms the vital backbone of Sri Lanka's national economy, focusing on capacity building and long-term financial sustainability. • Key Speakers: Features international economist Talal Rafi (former ADB/EU consultant) and senior chartered accountant Chaaminda Kumarasiri, providing insights on economic policy, business strategy, and financial management. • Participation: Registration and inquiries are open via Nishanthi (+94 762 555707 / 11 4741788) or Gerard (+94 77 4586940).

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📈 5 Key Insights from Nepal’s First Billionaire for Sri Lankan Entrepreneurs

CG Corp Global Chairman and Nepal’s only Forbes-listed billionaire, Dr. Binod Chaudhary, shared critical business lessons during a session with the Entrepreneurs’ Organisation (EO) Sri Lanka, drawing from his 25-year investment history in the island's banking and hospitality sectors. • The "Shock-Readiness" Advantage: Dr. Chaudhary noted that operating in volatile markets like Sri Lanka and Nepal builds a unique resilience. Surving currency crises and political instability acts as a competitive advantage when expanding into stable economies. • Collective Accountability Over Heroics: Drawing from Japanese business culture, he emphasized that sustainable organizational growth relies on deep discipline and shared outcomes. Success happens when incentives and metrics align collective and individual goals. • The Flow of Value in Joint Ventures: Partnerships with global giants survive on continuously regenerating capabilities (a "flow" of value like networks or expertise) rather than one-off transactional assets (a "stock" like a contract), which quickly depreciate. • Clear Family Business Succession: To manage family succession effectively, Dr. Chaudhary advocates giving the next generation complete ownership over distinct business domains supported by a strong family constitution, rather than dividing them by functional roles. • Prioritizing Resilience Over Credentials: Highlighting talent acquisition, he advised entrepreneurs to look beyond elite academic credentials. True growth indicators are drive, adaptability, and a proven track record of performing under pressure. _Context_: Dr. Chaudhary’s CG Corp Global maintains a strong footprint in Sri Lanka, holding a majority stake in Union Bank and multiple premier hospitality properties, reflecting long-term conviction in the country's economic potential.

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Financial & Investment News

SEC & CSE to Host Second Investor Forum on 9th July 📈

• Event Details: The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) will host a free investor forum conducted in English on 9th July 2026 at 5:30 p.m. at the CSE Trading Floor (WTC, Colombo 1). It targets potential investors in the greater Colombo area looking to invest in the stock market or Unit Trusts. • Participant Incentives: Stockbrokers and Unit Trust firms will be available for account opening from 9:00 a.m. onwards. The first 200 participants opening accounts on the day will receive an investment coupon gifted by SEC and CSE. • Market Growth Context: The forum comes amid a remarkable six-year capital market expansion. The All-Share Price Index (ASPI) rose 360% from 4,846 points in May 2020 to 22,310.80 points by May 2026, marking a Compound Annual Growth Rate (CAGR) of ~28.98%, with capital gains remaining tax-free. • National Initiative: This is part of an ongoing island-wide initiative to enhance financial literacy, broad-base investor participation, and leverage the CSE’s nationwide branch network. Feature presentations will include insights from the SEC, CSE, and the Central Bank of Sri Lanka (CBSL).

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📈 Swedfund Invests US$ 15 Mn in CDB to Boost Sri Lankan MSMEs and Job Creation

Swedfund, the Swedish Development Finance Institution, has invested US$ 15 million in Citizens Development Business Finance (CDB) to expand access to long-term financing for micro, small, and medium-sized enterprises (MSMEs) in Sri Lanka. • Overall Funding: A US$ 15 million capital injection aimed at addressing the severe constraints on long-term capital resulting from Sri Lanka's recent economic challenges. • Target Sector: MSMEs, which account for a significant share of national employment and economic activity but heavily lack formal financing, especially in rural areas. • Women's Economic Empowerment: 30% of the total financing is strictly dedicated to supporting women-owned or women-led businesses. The investment aligns with the global 2X Challenge criteria. • Strategic Impact: Beyond capital, the partnership will help CDB strengthen its environmental and social risk management systems alongside expanding its climate-related lending practices.

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📈 Amana Takaful Raises Rs. 1 Bn+ via Oversubscribed Rights Issue

Amana Takaful PLC has successfully concluded its Rights Issue, signaling strong investor confidence in the firm’s strategic direction. • Funding Details: Raised over Rs. 1 Bn through the issuance of 52.8 million new ordinary shares at Rs. 19 per share. • Investor Response: The issue was oversubscribed by 68.8%, reflecting significant shareholder demand. • Strategic Focus: Capital will support ongoing growth in the insurance sector, particularly in motor and medical segments, alongside digital transformation initiatives. • Financial Impact: The raise bolsters Tier I capital and ensures readiness for the implementation of SLFRS 17 and SLFRS 9, providing enhanced financial flexibility for future expansion. This capital infusion follows a period of steady growth for the company, which continues to prioritize technological integration to streamline general insurance services.

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📈 CSE to Open Iconic Trading Floor for Colombo Investor Forum on June 25

The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission (SEC) are launching a nationwide series of investor forums to boost financial literacy and capital market access. • Market Milestone: The initiative kicks off amid a remarkable six-year capital market expansion, with the All Share Price Index (ASPI) surging 360% from 4,846 points (May 2020) to 22,310.80 points (May 2026)—representing a compound annual growth rate (CAGR) of ~28.98%, with capital gains remaining tax-free. • Event Details: The first free forum will be conducted in Sinhala on Thursday, 25 June 2026, starting at 5:00 p.m. on the CSE trading floor at the World Trade Centre, Colombo. The trading floor will open early from 9:00 a.m. to 5:00 p.m. for public walkthroughs. • Investor Services: Representatives from stockbroker firms and unit trust associations will assist with direct account openings. The first 200 participants to open an account on the day will enter a raffle draw for an investment coupon. • Key Stakeholders: Features an interactive panel and sessions with officials from the Central Bank of Sri Lanka (CBSL), SEC, CSE, and leading market intermediaries covering the macroeconomic outlook, sectoral performance, and investor protection frameworks.

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Nations Trust Bank’s Rs. 15 Bn Debenture Issue Oversubscribed on Opening Day 📈

• Overall Issue: Nations Trust Bank PLC (NTB) successfully closed its Basel III-compliant Tier 2 debenture issue ahead of schedule on 19 June 2026 after hitting full oversubscription on its opening day. • Subscription Details: The initial public offering comprised up to 100 million debentures at Rs. 100 each, with an option to issue a further 50 million in the event of oversubscription. Applications exceeded 150 million debentures, triggering the full subscription of the maximum Rs. 15 Bn limit. • Structure & Tenors: The listed, rated, unsecured, subordinated, and redeemable debentures feature a non-viability conversion feature across three tenors: 5 years (2026-2031) 7 years (2026-2033) 10 years (2026-2036) • Strategic Impact: The banking sector capital injection is intended to strengthen NTB's Tier 2 capital base, supporting its future business growth while comfortably maintaining regulatory capital requirements. • Next Steps: The final basis of allotment will be officially notified to the Colombo Stock Exchange (CSE) in due course.

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🚀 SpaceX IPO Propels Elon Musk to World's First Trillionaire

• Overall Wealth: Tech entrepreneur Elon Musk's net worth is set to exceed US$ 1.1 Tn as SpaceX begins public trading following a historic initial public offering (IPO). Prior to the listing, Forbes valued his wealth at approximately US$ 780 Bn. • IPO & Valuation: SpaceX raised a record US$ 75 Bn in its IPO. Musk's personal stake in the rocket, satellite, and AI firm is now valued at roughly US$ 866 Bn, forming the majority of his historic wealth pile alongside electric vehicle manufacturer Tesla. • Comparative Scale: Musk's new valuation places him far ahead of global peers. The world's second-richest person, Larry Page, holds a net worth hovering around US$ 300 Bn, meaning Musk is worth nearly triple his closest billionaire counterpart. • Market & Context: While Tesla redefined the global automotive industry, it faced weakening sales in international markets in 2025 due to consumer boycotts over Musk's political ventures. Investor enthusiasm remains heavily anchored to the "Elon Premium" across his tech empire.

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Product & Service Launches / Business Expansions To understand how these mobile money systems are rolling out across the region, watch this [GovPay digital transformation news clip](https://www.youtube.com/watch?v=wIY5DAWkWBI), which discusses the initial national implementation and expansion of this government platform.