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✈️ Emirates & Boeing Explore Bringing Boeing 777-9 to Sri Lanka

• Strategic Engagement: Key officials from Boeing, Emirates, and the Civil Aviation Authority of Sri Lanka (CAASL) met to initiate preliminary talks on introducing Boeing 777-9 aircraft operations to Sri Lanka. • Regulatory Alignment: Discussions centered on meeting regulatory, airworthiness, safety, and airport infrastructure requirements necessary to accommodate the next-generation wide-body aircraft. • Advanced Features: The long-haul Boeing 777-9 features advanced fuel-efficiency technology and folding wingtips, allowing its large wingspan to operate within existing airport gates and taxiways. • Economic Impact: CAASL confirmed its positive intent to facilitate access upon safety approval, a move set to boost the aviation, tourism, and logistics & freight sectors while improving national air connectivity.

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Product & Service Launches / Business Expansions

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✈️ Emirates & Boeing Explore Bringing Boeing 777-9 to Sri Lanka

• Strategic Engagement: Key officials from Boeing, Emirates, and the Civil Aviation Authority of Sri Lanka (CAASL) met to initiate preliminary talks on introducing Boeing 777-9 aircraft operations to Sri Lanka. • Regulatory Alignment: Discussions centered on meeting regulatory, airworthiness, safety, and airport infrastructure requirements necessary to accommodate the next-generation wide-body aircraft. • Advanced Features: The long-haul Boeing 777-9 features advanced fuel-efficiency technology and folding wingtips, allowing its large wingspan to operate within existing airport gates and taxiways. • Economic Impact: CAASL confirmed its positive intent to facilitate access upon safety approval, a move set to boost the aviation, tourism, and logistics & freight sectors while improving national air connectivity.

Transport, Logistics & Infrastructure
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Chance Fashion Launches High-Tech Integrated Facility in Moratuwa 📈

• Facility Launch: Leading Sri Lankan apparel & textiles supplier Chance Fashion has opened a new high-tech manufacturing plant, showroom, and factory outlet in Moratuwa (No. 73/13, New Galle Road). • Operational Integration: The investment integrates manufacturing, retail, and showroom operations under one roof, marking a milestone in the firm's 18-year history. • Strategic Expansion: Designed to enhance production capabilities and scale up retail, e-commerce, and wholesale distribution across the country for women's fashion. • Leadership Insight: Owner Maheshani Henricus highlighted that the expansion underscores a commitment to innovation, quality, and sustainable growth within the local market.

Apparel & Textiles
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💎 Gem Sri Lanka 2027 Unveiled in Bangkok to Boost Trade Ties

• Trade Performance: Sri Lankan exports to Thailand more than doubled in 2025, reaching over US$ 90 Mn (up from ~US$ 41.6 Mn in 2024). • Key Sector: Gem and jewellery remains the primary driver, with precious and semi-precious stones accounting for nearly 70% of total exports to Thailand. • Strategic Partnership: Event highlighted opportunities for bilateral cooperation in gem cutting, processing, jewellery manufacturing, design, and technology transfer, leveraging Sri Lanka's raw gemstone resources alongside Thailand's processing and global marketing expertise. • Upcoming Event: Organized by the Ceylon Gem and Jewellery Traders Association (CGJTA), the 4th edition of "Gem Sri Lanka 2027" is set to take place in Sri Lanka in January 2027 to connect international buyers and drive industry diversification.

Manufacturing & Industrials
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⚡ GS EVO Motors Launches JMEV EWIND Electric SUV in Sri Lanka

• Market Entry & Focus: Authorized distributor GS EVO Motors Ltd. has launched the all-new JMEV EWIND compact electric SUV, expanding local adoption in the electric mobility and automotive sectors to support sustainable transportation. • Performance Specs: • Power Output: Up to 108 kW • Max Torque: 210 Nm • Acceleration: 0–100 km/h in 8.9 seconds • Battery Capacity: 70.38 kWh • Driving Range: Up to 610 km (NEDC) • Design & Safety Features: Equipped with 19-inch alloy wheels, panoramic moonroof, lightweight steel-aluminum body structure, 6 airbags, ABS, ESP, Lane Keeping Assist (LKA), Blind Spot Detection (BSD), and Forward Collision Warning (FCW). • Warranty & After-Sales: Includes an 8-year or 150,000 km battery warranty, a 5-year or 150,000 km vehicle warranty, and free labor and materials for the first 5 services.

Manufacturing & Industrials
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🚗 Hayleys Mobility & HDFC Bank Partner to Provide Flexible Vehicle Leasing

• Strategic MoU Signed: Hayleys Mobility Ltd. has partnered with HDFC Bank of Sri Lanka to offer customized financing facilities across its multi-brand vehicle portfolio. • Product Portfolio Covered: Covers passenger cars, commercial vehicles, and two-wheelers, including four-wheelers from OMODA & JAECOO, KAIYI, SRM, and King Long, plus CFMOTO and ZEEHO two-wheelers. • Financing Terms: Offers flexible repayment tenors, specialized leasing options, and tailored credit packages subject to HDFC Bank's prevailing credit guidelines. • Sustainability Focus: Drives adoption of fuel-efficient, hybrid, and electric options, aligning with national goals to lower reliance on fossil fuels and curb carbon emissions. • EV Ecosystem Integration: Supported by parent company Hayleys Fentons, the partnership connects electric vehicles (EVs) with charging infrastructure, installation, and after-sales care to expand nationwide mobility access.

Banking & Financial Services
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☕ Kahawatte Plantations & Australia's MDF Partner to Boost Specialty Coffee Exports

• Project Overview: Kahawatte Plantations PLC (KWPL) and Australia's Market Development Facility (MDF) have launched a new Coffee Processing Centre and Smallholder Farmer Network at Craighead Estate, Nawalapitiya. The initiative aims to expand Sri Lanka’s specialty coffee sector alongside established tea, rubber, and cinnamon operations. • Processing Facilities: The newly commissioned processing centre features advanced processing machinery, including a disk pulper and washer, an African huller, a flat-deck grader, a gravity separator, and a modern 1,000-square-foot drying house. • Smallholder Farmer Impact: • Supports 169 smallholder farming families, surpassing the initial target of 100 families. • Plans to expand the network to 500 smallholder farmers by 2030. • Farmers receive quality planting materials via the MJF Charitable Foundation alongside technical extension support. • Market & Export Targets: • Aims to export premium green beans to high-value international markets, including Australia. • Strategy includes in-house roasting for domestic premium consumer and business markets in Sri Lanka.

Agriculture, Plantations & Fisheries
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Infomate Expands Sri Lanka’s BPM Footprint to Kurunegala 📈

• Strategic Regional Expansion: Infomate Ltd, a subsidiary of John Keells Holdings PLC, opened its second regional office in Kurunegala to expand the national ICT/BPM footprint beyond Colombo. • Talent Retention & Inclusion: The move aims to retain local talent by providing international career pathways and global market exposure for youth in the North Western Province without requiring relocation. • Proven Regional Track Record: Builds on Infomate’s rural BPM/BPO delivery models previously established in Mahavilachchiya, Seenigama, and Jaffna. • Global Reach: As Sri Lanka's first ISO 27001-certified accounting BPO, Infomate currently serves clients across 10 countries, including the UK, US, Canada, Australia, and the Middle East.

Professional & Business Services
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🛡️ Kaspersky Partners with Vietnam to Boost Cyber Security

• Strategic Partnership: Kaspersky signed a Memorandum of Understanding (MoU) with Vietnam’s Cyber Security and High-Tech Crime Prevention Department under the Ministry of Public Security to strengthen national cybersecurity capabilities. • Core Scope of Cooperation: • Exchange of threat intelligence, cyberthreat data, and international experience. • Capacity building to prevent, detect, and proactively respond to cybercrime and high-tech crime. • Policy development support to ensure a safe, secure, and sustainable digital ecosystem. • Institutional Context: • Supports Vietnam’s accelerated digital transformation amid rising cyber-risk scale and sophistication. • Follows nearly 20 years of Kaspersky’s collaboration with Vietnamese state agencies, enterprises, and research bodies, complemented by opening its official Ho Chi Minh City office in 2025. • Aligns with broader regional efforts to fortify national critical infrastructure and drive capacity building in the ICT/BPM and digital economy sectors across Asia.

Technology & Digital Services
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☀️ Hayleys Solar Commissions 3MW Veyangoda Solar Project

• Project Launch & National Targets: Hayleys Solar, a unit of Hayleys Fentons under the Hayleys Group, has commissioned its 3MW Veyangoda Ground-Mounted Solar Project. Opened by Energy Minister Hon. Anura Karunathilake, this marks the first installation under the company's planned 300MW ground-mounted solar portfolio across Sri Lanka to drive the nation's renewable energy transition. • Technical Specifications & Generation: • Installed Capacity: 4,143.36 kWp DC / 3MW AC featuring 640W bifacial solar panels. • Annual Output: ~6.35 Mn kWh (6,351,770.88 kWh) of clean electricity, enough to power ~2,700 average Sri Lankan households. • Carbon Reduction: Offsets ~4,339.53 tonnes of CO₂ emissions annually. • Climate-Resilient Design & Agrivoltaics: • Built adjacent to Aththanagalla Oya, the plant features an elevated mounting structure (~2.7 metres ground clearance) to resist local flooding based on historical Irrigation Department data. • The elevated layout allows dual land use via an agrivoltaic initiative, supporting the cultivation of agriculture crops like brinjal and Scotch bonnet pepper beneath the solar panels.

Energy & Utilities
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🤖 Salesforce Unveils Trusted Enterprise AI Harness 📈

Salesforce has introduced its Trusted Enterprise AI Harness, a unified architecture designed to help enterprises securely build, manage, and scale autonomous AI agents across core business operations. • Core Architecture & Control Plane: Features a centralized AI Control Plane alongside six core capabilities: Trusted Context, Trusted Agency, Trusted Action, Trusted Governance, Trusted Security, and Trusted Models. • Platform Integration: Integrates technologies across Data 360, Informatica, MuleSoft, Agent Fabric, Tableau, Agentforce, Salesforce Guardian, and Salesforce Platform. • Ecosystem & Interoperability: Extends across third-party platforms and tools including Claude, Slack, and Microsoft Teams. • Timeline & Availability: Key foundational technologies are currently available, with the full experience planned for rollout starting early fiscal FY28. Upgrade paths and pricing are to be announced.

Technology & Digital Services
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Dialog Launches South Asia’s First 5G eSIM MiFi 📶

• Key Highlights: Dialog Axiata PLC introduced South Asia's first 5G MiFi featuring eSIM technology and Wi-Fi 6, expanding Sri Lanka's telecommunications & digital infrastructure. • Network & Reach: Backed by over 1,000 live 5G sites across all 25 districts, supporting both Dialog 5G Ultra and 4G networks. • Device Specs: • Supports up to 16 simultaneous devices. • 5000mAh battery providing up to 16 hours of continuous use. • Equipped with Type-C USB connectivity. • Pricing & Plans: Retails at LKR 39,990 with installment options up to 60 months. Compatible with Dialog Ultra plans (LKR 1,495 to LKR 3,999).

Telecommunications & Media
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🚘 GAC Expands Sri Lankan Footprint with New 3S Facility & EMKOO SUV Launch

Chinese automaker GAC, alongside local distributor Automobile Technologies Ltd., has strengthened its local operations by opening a integrated 3S facility in Union Place, Colombo, while officially introducing the all-new GAC EMKOO SUV. • 3S Facility Launch: The new Union Place venue consolidates Sales, Service, and Genuine Spare Parts under one roof to enhance post-purchase support and customer experience in the domestic automotive market. • GAC EMKOO SUV Specs: • Engine & Power: 1.5-litre turbocharged engine producing 177 PS and 270 Nm of torque. • Transmission & Performance: 7-speed wet dual-clutch transmission; accelerates 0–100 km/h in 8.8 seconds with a top speed of 190 km/h. • Cabin & Tech: Features a dual-screen setup (10.25-inch LCD cluster + 10.1-inch infotainment screen) with wireless Apple CarPlay and Android Auto. • Storage: Cargo space offers 638 litres, expandable to 1,586 litres. • Key Stakeholders Present: Event led by GAC South Asia Region GM Daniel Zhou, GAC Country Manager Raymon Wang, Asia Region Director Faisal Sharif, alongside Automobile Technologies Ltd. Directors Chandri Jayathilake and Suren Karunakaran.

Retail & E-commerce
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Economic News

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📈 Sri Lanka PMI August 2026: Expansion Continues in Manufacturing & Services

• Overall Headline Figures • Manufacturing PMI: Recorded 53.0 in Aug (vs 55.0 in Jul), indicating continued expansion at a slower rate. • Services PMI: Accelerated to 65.6 in Aug (vs 61.4 in Jul), showing stronger momentum. • Manufacturing Breakdown • Production index fell below neutral to 48.4 (from 54.5 in Jul), mainly driven by a slowdown in textiles & wearing apparel. • New Orders normalized to 50.0 (from 55.9 in Jul). • Employment rose to 54.8 (from 51.0 in Jul) while Stock of Purchases increased to 54.8 (from 51.5 in Jul), reflecting active hiring and inventory buildup for year-end seasonal demand. • Delivery times lengthened to 63.0 due to persistent supply chain disruptions. • Services Breakdown • Growth propelled by high performance in transportation, wholesale & retail trade, and professional services. • Financial services and personal services sub-sectors also delivered strong contributions. • Employment grew to 53.3 (from 52.9 in Jul), supported by new recruitments. • Backlogs of Work dropped to 48.3 (from 51.2 in Jul), clearing previous month backlogs. • Economic Outlook & Key Drivers • Manufacturing outlook remains positive, buoyed by the upcoming year-end seasonal upturn. • Services expectations stay optimistic (71.7), anchored by anticipated economic recovery and expansion in tourism, though global economic uncertainties present near-term downside risks.

Economy-wide / Cross-sector
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📉 Fitch Warns US Equity Shock Could Trigger Global Recession

• Downside Risks & Global Impact Fitch Ratings warns that a severe AI-related equity price shock (-35% in US share prices over 6 months) combined with reduced capital spending could cause a US recession, slowing global GDP growth below 1.0% in 2027—a state of global stagnation. • Key Economic Metrics (Adverse Scenario) US GDP Growth (2027): -0.6% (falling to -1.5% YoY in 2Q27) US Private Capex: Drop exceeding 6% Federal Reserve Policy Response: Up to 325bp rate cut China & Eurozone GDP Hit: -0.8pp Trade-reliant Nations Hit: Canada and Mexico to experience >2% GDP drop • Implications for Sri Lanka A sharp economic downturn in major markets poses indirect downside risks to Sri Lanka's key export-earning sectors like apparel & textiles, which heavily depend on US consumer demand for export revenue, employment stability, and foreign currency inflows.

Economy-wide / Cross-sector
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📈 CBSL Open Market Operations Summary – 14 Sept 2026

The Central Bank of Sri Lanka (CBSL) released its latest liquidity and market transaction figures, reflecting current conditions in the domestic banking & financial services sector. • Overnight Money Market • Call Money Market: Total turnover of Rs. 34,825 Mn; Weighted Average Rate at 8.88% (Range: 8.82% - 8.92%). • Repo Market: Total turnover of Rs. 46,282 Mn; Weighted Average Rate at 8.96% (Range: 8.90% - 8.99%). • Open Market Operations (Auctions) • Overnight Repo Auction: Rs. 70,000 Mn offered; Rs. 56,500 Mn received and accepted. Weighted Average Yield at 8.72% (Range: 8.64% - 8.75%). • 7-Day Short Term Repo Auction: Rs. 20,000 Mn offered, received, and fully accepted at a constant rate of 8.75%. • CBSL Standing Facilities & Holdings • Standing Deposit Facility: Rs. 58,061 Mn utilized. • Standing Lending Facility: Rs. 3,161 Mn utilized. • Treasury Holdings: Face Value at Rs. 2,492,619.35 Mn (Book Value: Rs. 1,558,830.50 Mn).

Economy-wide / Cross-sector
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📈 Sri Lanka Private Sector Credit Growth Slows to Rs. 169 Bn in July

Provisional Central Bank of Sri Lanka (CBSL) data shows net credit to the private sector expanded by Rs. 169.1 billion MoM in July 2026, marking a 31% decline from June’s Rs. 245.3 billion expansion. • Private Sector Borrowing: Total outstanding private credit rose to Rs. 11.45 trillion (up from Rs. 11.28 trillion in June), with YoY growth easing slightly to 26.4% from 27.4%. • Banking Sector Breakdown: Domestic Banking Units (DBUs) drove growth, expanding by Rs. 158 billion MoM to Rs. 10.86 trillion (28.5% YoY). Offshore Banking Units (OBUs) added Rs. 11.2 billion MoM to reach Rs. 590.4 billion (-3% YoY). • Government & State Credit: Net credit to the government from the banking system contracted further by Rs. 165.9 billion MoM to Rs. 7.83 trillion (-8.2% YoY). Outstanding credit to State-Owned Business Enterprises (SOBEs) fell Rs. 23.6 billion MoM to Rs. 486 billion (-19.5% YoY). • External & Domestic Assets: Net foreign assets (NFA) jumped by Rs. 253.3 billion MoM to Rs. 1.52 trillion (+72.8% YoY). Net domestic assets (NDA) fell Rs. 127.8 billion MoM to Rs. 15.53 trillion (+8.4% YoY). • Monetary Aggregates: Broadest money supply (M2b) grew by Rs. 125.5 billion MoM to Rs. 17.04 trillion, accelerating YoY growth to 12.1%. Reserve money expanded by Rs. 5.3 billion MoM to Rs. 1.89 trillion (12.2% YoY).

Economy-wide / Cross-sector
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📈 Sri Lanka Fiscal Deficit Reaches Rs. 119 Bn in July, But 7-Month Position Up YoY

Overall Figures • Budget Balance: Deficit expanded to Rs. 119.23 Bn in July 2026, wiping out H1 surplus to push Jan–Jul cumulative deficit to Rs. 109.72 Bn. • YoY Improvement: 7-month deficit narrowed by 80.3% YoY from Rs. 556.11 Bn in Jan–Jul 2025. • Primary Surplus: Monitoring target under IMF reform program grew 38.5% YoY to Rs. 1,348.58 Bn. Revenue Breakdown • Total Revenue & Grants: Up 25.1% YoY to Rs. 3,421.26 Bn. • Tax Revenue: Increased 23.8% YoY to Rs. 3,136.32 Bn. • Non-Tax Revenue: Rose 44% YoY to Rs. 281.55 Bn. • Grants: Dropped 38.4% YoY to Rs. 3.39 Bn. Expenditure & Public Debt • Total Expenditure: Up 7.3% YoY to Rs. 3,530.98 Bn. • Recurrent Spend: Rose 4.9% YoY to Rs. 3,149.13 Bn; Capital Spend accelerated 31.6% YoY to Rs. 381.85 Bn. • Central Govt Debt: Stood at Rs. 30,795.04 Bn (May 2026). Domestic debt dipped to Rs. 18,609.43 Bn, while foreign debt rose to Rs. 12,185.61 Bn.

Economy-wide / Cross-sector
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📈 Record Remittances in August Push 8-Month Inflows Past US$ 6.13 Bn

• Monthly Performance: Inflows reached US$ 748.6 Mn in August 2026, marking a 10% YoY increase. Despite a 3.7% dip from July's record US$ 777.6 Mn due to seasonal trends, it remains one of the highest monthly totals on record. • Cumulative Figures: Jan–Aug 2026 inflows expanded by 20% YoY to exceed US$ 6.13 Bn, posting the strongest first-eight-month performance in Sri Lanka’s history. • Macroeconomic Impact: Driven by resilient migrant workers and formal Banking channels, workers' remittances remain Sri Lanka's largest source of foreign exchange. This sector continues to stabilize foreign exchange reserves amidst external pressures on exports and tourism.

Economy-wide / Cross-sector
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📊 Sri Lanka Consumer Sentiment Stabilises for Third Straight Month in August 2026

Sri Lankan consumer confidence maintained its gradual recovery trend in August 2026, supported by moderating price pressures, according to the latest survey by Prosoft Research & Insights. • Key Index Movements: • The Consumer Sentiment Index rose marginally to 81 in August, up from 80 in June 2026, marking three consecutive months of gain since May 2026. • This is the first three-month streak of continuous stabilisation recorded since January 2026. • The reading remains lower than August 2025 levels due to elevated YoY inflation over the past year. • Inflation & Price Context: • Sentiment trends closely mirrored the Colombo Consumer Price Index (CCPI), which increased only marginally to 209, reflecting broader price stabilisation across key markets. • Historical Comparison: • All-Time High: 90 (September 2024, following the presidential transition). • All-Time Low: 56 (June 2022, during peak economic unrest). • Data Source: Monthly survey conducted by Prosoft Research & Insights based on a sample of 200 respondents.

Economy-wide / Cross-sector
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Sri Lankan Officials Complete IMF-Backed Debt Sustainability Program 📈

• Overview: A 5-day capacity building course on the Sovereign Risk and Debt Sustainability Framework (SRDSF) was held at Taj Samudra, Colombo from September 7–11 as part of the IMF’s technical assistance program. • Key Institutions Involved: Organized by the IMF South Asia Regional Training and Technical Assistance Center (SARTTAC), bringing together international participants alongside local officials from the Public Debt Management Office (PDMO) and the Central Bank of Sri Lanka. • Core Focus & Objectives: • Enhance technical capabilities to evaluate sovereign risks and assess public debt sustainability. • Measure the impact of macroeconomic and financing shocks on national debt. • Adopt international best practices to support sound, evidence-based public debt management decisions.

Economy-wide / Cross-sector
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📈 CBSL Chief Urges Focus on FX Reserve Buffers Amid Global Uncertainty

• Strategic Focus: Speaking at the Reserve Management Conference 2026 in Colombo, CBSL Governor Dr. Nandalal Weerasinghe urged central banks to prioritize liquidity and safety over investment returns amid geopolitical fragmentation, sanctions, and trade risks. • Lessons from Crisis: Highlighting Sri Lanka's 2022 economic crisis, he noted that critically low reserves constrained essential imports, aggravated exchange-rate volatility, and limited policy responses. • Asset & Portfolio Strategy: • US Dollar: Retains unmatched liquidity for global trade, but uncalculated diversification must be avoided. • Gold: Noted renewed interest as a credit-risk-free store of value, though liquidity remains the primary anchor. • Reserve Adequacy: Called for broader risk-management frameworks over traditional single metrics (like months of import cover) to withstand compound shocks, including climate events like Cyclone Ditwah. • Tech & Regional Support: Stressed that AI should augment—not replace—human judgment in managing national reserves. Highlighted bilateral support, such as assistance from the Reserve Bank of India, as key to regional financial resilience.

Economy-wide / Cross-sector
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📈 CBSL Open Market Operations – 10 Sept 2026

• Money Market Rates: • Call Money: Weighted average rate at 8.87% (range: 8.75%–8.92%) with gross volume of Rs. 40.05 Bn (net: Rs. 39.05 Bn). • Repo Market: Weighted average rate at 8.96% (range: 8.92%–8.99%) with total volume of Rs. 39.72 Bn. • Central Bank Auctions: • Overnight Repo: Rs. 40.00 Bn offered, Rs. 53.00 Bn in bids received. Total accepted: Rs. 40.00 Bn at a weighted average yield of 8.70%. • 7-Day Short Term Repo: Rs. 30.00 Bn offered; no bids/accepted amounts recorded (based on provisional data). • Standing Facilities & Holdings: • Standing Deposit Facility: Rs. 76.37 Bn. • Standing Lending Facility: Rs. 171.00 Mn. • CBSL T-Bill/Bond Holdings: Face value at Rs. 2.49 Trillion (Book value: Rs. 1.56 Trillion).

Economy-wide / Cross-sector
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📈 Sri Lanka Economy: Progress & Constraints in Digitalization & Agriculture Reforms

Analysis of response to “Budget 2027” highlights key reform progress and structural bottlenecks in boosting productivity to target >7% GDP growth. • Digital Transformation Progress • Tax Administration: ~80% complete; tied to IMF program, digital VAT & online filing boosted tax revenues. • Customs Clearance: ~60% complete; aims to cut clearance from days to hours via National Single Window. • Business Licensing: ~50% complete; GovPay platform launched to simplify approvals & attract investment. • Land Registries: Long-term project active to digitize titles & link with National Digital ID system. • Agriculture Sector Modernization • Policy shifting from subsidies to productivity, agribusiness value-addition, and export alignment. • Budget 2026 funds allocated for climate irrigation, Dambulla cold storage, and modern drying facilities. • Department of Agriculture expanding adoption of drip irrigation, drones, and smart technologies. • Key Constraints Facing Government • High fiscal deficits limiting upfront capital for agricultural infrastructure. • Very high political & land tenure constraints (small 1-2 acre holdings limit commercial scale). • Institutional fragmentation, aging farmer demographics, and limited access to long-term finance.

Economy-wide / Cross-sector
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📊 CBSL Open Market Operations Summary: Sept 8, 2026

The Central Bank of Sri Lanka (CBSL) conducted liquidity management operations in the banking & financial services sector today with the following key updates: • Overnight Money Market • Call Money: Total volume of Rs. 47.93 Bn traded at a weighted average rate of 8.87% (range: 8.80% - 8.92%). • Repo Market: Total net volume reached Rs. 55.22 Bn at a weighted average rate of 8.95% (range: 8.90% - 9.00%). • Open Market Liquidity Auctions • Overnight Repo: Fully absorbed Rs. 40.00 Bn offered (bids received: Rs. 41.50 Bn) at a weighted average yield of 8.74%. • 7-Day Short Term Repo: Accepted Rs. 15.00 Bn of the Rs. 30.00 Bn offered at a yield of 8.75%. • Standing Facilities & Treasury Holdings • Standing Deposit Facility: Commercial utilization stood at Rs. 65.17 Bn. • Standing Lending Facility: Minimal borrowing utilized at Rs. 0.36 Bn. • CBSL Holdings: Treasury holdings recorded a Face Value of Rs. 2.49 Tn and a Book Value of Rs. 1.56 Tn.

Economy-wide / Cross-sector
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Sustainability, ESG & Corporate Responsibility

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Citi Foundation Launches $25 Mn Global Challenge for Youth AI Upskilling 📈

• Global Funding Overview: Citi Foundation commits US$ 25 Mn in its fourth Global Innovation Challenge to equip low-income youth with artificial intelligence and digital workforce skills. • Grant Structure: The initiative will disburse US$ 500,000 grants to 50 community organizations globally, aiming to enhance youth employability and support local economic resilience. • Key Focus Areas: • Building AI literacy (e.g., prompt engineering, content creation) paired with critical soft skills like problem-solving. • Expanding digital access via community hubs, shared devices, and low-connectivity tools. • Integrating AI tools into existing youth employment initiatives and fostering cross-sector partnerships. • Industry Demand Drivers: Citing World Economic Forum research, 66% of employers seek specialized AI capabilities, while over 60% demand enhanced human-centric skills. • Timeline & Eligibility: Eligible organizations must submit expressions of interest by October 6, 2026, with grant recipients to be announced in 2027.

Banking & Financial Services
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AlchemX Global Launches SLFRS S1 & S2 Sustainability Reporting Landscape Publication 📊

• Publication Launch: Specialist firm AlchemX Global launched “Insights from the First Wave – Sri Lanka’s emerging SLFRS S1 & S2 Reporting Landscape” at Hilton Residencies, Colombo, gathering key corporate leaders, reporting professionals, and institutional regulators. • Key Stakeholder Alignment: The forum saw participation from major market custodians, including the Colombo Stock Exchange (CSE), CA Sri Lanka, the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB), AICPA & CIMA, and ACCA. • Core Scope & Objectives: The study analyzes the first wave of sustainability disclosures under SLFRS S1 (General Requirements) and SLFRS S2 (Climate-related Disclosures). It shifts the focus from simple compliance to integrating disclosures into strategic risk management, decision-making, and decision-useful reporting. • Capacity Building: As an official ISSB Training Partner, AlchemX Global aims to enhance national implementation capability across core service pillars—Finance, ESG, and Reporting—by embedding globally recognized frameworks such as GRI, SASB, and Integrated Reporting. • Resource Access: The complete publication is accessible for download via the official AlchemX Global web portal.

Professional & Business Services
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🌿 Nations Trust WNPS Lecture: Future of Sri Lanka's Wildlife Heritage

• Event Overview: The Wildlife and Nature Protection Society (WNPS), supported by Nations Trust Bank, will host its September Monthly Lecture on 17 September at 6.00 p.m. at Jasmine Hall, BMICH. The public event is free to attend. • Keynote Speaker: Department of Wildlife Conservation (DWC) Director General Ranjan Marasinghe—the 35th DG appointed in January 2026—will present on “Sri Lanka’s Wildlife Heritage: Conserving Nature for Future Generations”. • Scope of Protected Areas: DWC manages over 1.25 million hectares of protected land, safeguarding local ecosystems while supporting ecological, cultural, and ecotourism values. • Key Pressures & Challenges: • Habitat Loss & Conflict: Rising pressures from habitat fragmentation, development, and intensifying human-elephant conflict as wildlife moves into agricultural zones. • Balancing Priorities: Addressing enforcement limits, illegal activities, and political/livelihood pressures alongside conservation mandates under the Fauna and Flora Protection Ordinance. • Tech-Driven Conservation: DG Marasinghe brings expertise in geoinformatics, utilizing GPS, satellite remote sensing, and GIS mapping for elephant movement tracking and corridor management.

Other
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Riza Yehiya Advocates 'Sustainable Family' Model to Combat Climate Crisis 🌿

• Core Thesis: Top-down global accords and macro policies fail to alter individual behavior. Architect and writer Mohamed Riza Yehiya's new book proposes a bottom-up anthropological approach, framing the family unit as the foundational institution for lasting environmental stewardship. • Educational Shift: Highlights the historical erosion of domestic education. Outsourcing values to formal institutions prioritized market utility over moral baselines; climate action requires reclaiming household-centric ecological ethics. • Five-Pillar Framework: Expands the traditional three-pillar sustainability model (environment, economy, society) by adding good governance/political sustainability and moral responsibility/stewardship (khilafah). • Circular Society: Rejects purely techno-secular fixes and hyper-individualism. Advocates moving from linear extraction to a holistic circular society, integrating spiritual values, controlled consumption, strong family bonds, and community solidarity. • Policy Relevance: Reviewed by former Central Bank Deputy Governor W.A. Wijewardena as a timely blueprint for both national policymakers and religious leaders to build ground-up socio-ecological resilience.

Economy-wide / Cross-sector
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Severe El Niño Drought Escalates Human-Wildlife Conflict & Agricultural Losses 📉

• Overall Impact: Severe drought driven by El Niño conditions has affected over 160,000 people across 8 districts, including Polonnaruwa, Ampara, and Anuradhapura. The Disaster Management Centre (DMC) has scaled water distribution from 6L to 50L per person daily, reaching 140,000+ individuals based on official data. • Agriculture & Supply Chain: Parched conditions in dry and intermediate zones have resulted in widespread crop failures across paddy, fruits, and vegetables. Livestock productivity has dropped sharply due to acute fodder and water shortages, severely impacting rural household incomes and local food security. • Human-Wildlife Crisis: Escalating water scarcity is driving wild animals into rural settlements, worsening human-elephant conflict and destroying homes, small businesses, and crop stores. • Monsoon & Climate Outlook: According to the Department of Meteorology, suppressed rainfall during the South-West monsoon has worsened dry zone conditions. While October-November may bring localized heavy rains, a drier-than-usual North-East monsoon (Dec–Feb) with high temperatures is projected to prolong stress on the agriculture sector and national water resources.

Economy-wide / Cross-sector
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Accelerating Global Warming Impacts & Local Economic Risks 🌡️

• National Impact & Risks: - El Niño-driven low rainfall has reduced dry-zone reservoir capacity below 40%, leaving thousands of minor tanks dry. - Threatens domestic drinking water and raises sharp uncertainty over the 2026/2027 Maha cultivation season, directly imperiling agriculture and rural livelihoods. • Global Disasters & Climate Context: - Nepal Glacier Collapse: Ice/rock collapse generated severe flash floods, destroying settlements, roads, and hydropower infrastructure, leaving hundreds dead. - Global Heatwaves: 2015–2025 marked the 11 hottest years on record. Europe saw summer temperatures near 43°C, while Victoria, Australia lost over 400,000 hectares to January 2026 bushfires. • Emissions Gap & Policy Outlook: - Oceans absorb 91% of excess atmospheric heat. Current policies put global warming on track for ~2.8°C by 2100—far above the Paris Agreement target of 1.5°C–2.0°C. - Mitigating future economic losses requires urgent transition toward renewable energy (solar, wind, hydro) and investment in climate-resilient agriculture and early warning systems.

Economy-wide / Cross-sector
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🌳 'Greenway' Project Targets 1M Tree-Planting Drive Along Island-Wide Highways

• Project Overview: Under the Clean Sri Lanka Secretariat, the "Greenway" initiative aims to plant one million trees along Class A and Class B roads island-wide to reduce air pollution, regulate urban temperatures, and enhance aesthetic appeal. • Industrial & Urban Scope: • Focuses on urban centers including Colombo, Gampaha, Kurunegala, and Galle. • Targets major industrial zones such as Katunayake, Biyagama, and Seethawaka to absorb pollutants naturally. • Key Sectors & Multi-Agency Support: • Involves multi-sectoral collaboration across state entities, public communities, school networks, private entrepreneurs, and armed forces. • Broad ecosystem support includes the Department of Forest Conservation, Road Development Authority, Department of National Botanic Gardens, and agriculture sector agencies like the Department of Export Agriculture and Department of Minor Export Crops. • Eco-zone specific species selected include Murutha, Na, Kumbuk, Mee, Goraka, and fruit-bearing trees like Jackfruit and Mango, paired with protective guard mesh for sustained growth.

Economy-wide / Cross-sector
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🤝 INSEE Cement Extends Vocational Training Partnership with NAITA & IETI to 2031

• Partnership Extension: INSEE Cement renewed its MoU with NAITA and the Industrial Engineering Training Institute (IETI) to extend its vocational training program through 2031. • Program Impact: Operating since 2007 via the INSEE Academy and Puttalam plant, the 1.5-year NVQ Level 4 initiative is Sri Lanka’s longest-running industry-partnered training pathway, graduating 260+ technical professionals over 19 years. • Current Batch: The 2026 intake (16th batch) includes 24 trainees specialized in Electrician (12) and General Fitter (12) disciplines. • Strategic Value: Secures a skilled talent pipeline for manufacturing & engineering, addressing national youth employment and bridging Sri Lanka's technical skills gap.

Manufacturing & Industrials
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WNPS Marks First Livestock Insurance Pay-Out & Launches Predator-Proof Pen Initiative 🐆

• Key Highlights & Payout: The Wildlife and Nature Protection Society (WNPS), alongside UNDP Sri Lanka (BIOFIN) and LOLC Holdings PLC, presented the first-ever insurance compensation cheque to a rural farmer in Alakolawewa following a leopard predation incident. • Scale & Participation: Over 1,000 farmers across Dambulla and Hingurakgoda have registered for the pilot scheme, establishing a vital financial safety net to protect rural livelihoods and prevent retaliatory killings of leopards outside Protected Areas. • Infrastructure Development: Laid the foundation stone for the first communal, predator-proof cattle pen in Wewalawewa. Supported by Jetwing Hotels and Colombo Jewellery Stores, the facility will safely house ~50 cattle overnight, targeting high-risk hours to secure dairy & livestock farming assets. • Strategic Partnership: Implemented in coordination with the Department of Wildlife Conservation, combining insurance payouts, community engagement, and protective infrastructure to balance wildlife conservation with rural economic stability.

Insurance
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📈 The Unlabelled Runway Returns to Drive Social Inclusion & Impact

• Event Overview: The second consecutive edition of "The Unlabelled Runway" social impact fashion show will take place on 25 September at Cinnamon Lakeside Colombo, organized by Caroline J Global Holdings. • Social Purpose: Aims to challenge societal stigma, break stereotypes, and empower marginalized groups, persons with disabilities, and cancer patients/survivors by having them walk the ramp alongside professional models. • Financial Commitment: 50% of total proceeds will be donated to partner organizations, including SOS Children's Villages Sri Lanka, Indira Cancer Trust, Roshan Mahanama Trust, and Child Action Lanka. • Key Cause Highlights: - Pink Runway: Dedicated segment to raise breast cancer awareness (noting local daily averages of 3 deaths and 15 new diagnoses). - Child Protection: Collaborates with SOS Children's Villages (caring for over 750 children) and Roshan Mahanama Trust to advocate for vulnerable and abused youth. • Partnerships & Digital Launch: - Official launch of the Caroline J Global Holdings website to showcase purpose-driven initiatives. - Supported by Cinnamon Lakeside Colombo (hospitality), MB Technologies (IT), ISACA USJ (youth networking), and PickMe (ticketing).

Other
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🎓 John Keells Hosts English Day Finals 2026 to Boost Youth Skills

• CSR Impact & Vision: John Keells Foundation (JKF), the CSR arm of John Keells Holdings PLC, hosted the English Day Finals 2026 under its flagship English Language Scholarship Programme (JKELSP). The initiative aims to enhance English, IT, and soft skills among disadvantaged youth to support higher education and employment. • Event Highlights: Tier 1 scholars showcased language proficiency and confidence through drama and presentation finals at Bishop’s College Auditorium, Colombo. • Program Reach: Over 21 years, JKELSP has benefited over 23,700 school children and youth across Sri Lanka. The 2026 Tier 1 competition engaged 678 out of 742 scholars representing 13 districts in 7 provinces. • Corporate Context: JKH is Sri Lanka’s largest listed conglomerate on the CSE, operating 80+ companies across 7 industry sectors and employing over 18,000 people.

Education & Training
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Siyapatha Finance Partners with Global Body PCAF to Standardize Carbon Accounting 📈

• Overview & Alignment: Siyapatha Finance PLC officially joined the Partnership for Carbon Accounting Financials (PCAF) to standardize greenhouse gas (GHG) emission measurements, bolstering Sri Lanka's financial services sector and its commitment to sustainable finance. • Global Network: Joins over 770 financial institutions globally to measure and disclose financed emissions using a harmonized, standardized carbon accounting framework. • Strategic Impact: Uses the PCAF framework to assess portfolio emissions, enhance climate transparency, improve risk management, and support Sri Lanka's long-term transition to a low-carbon economy.

Banking & Financial Services
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Industry & Sector News

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🇱🇰 Sri Lanka Targets Middle East Growth at Arabian Travel Market 2026 📈

• Event Scale: The Sri Lanka Tourism Promotion Bureau (SLTPB) established a national pavilion at the 33rd Arabian Travel Market (ATM) 2026 in Dubai, connecting with participants from 166 countries, 2,800+ exhibiting companies, and 55,000+ industry professionals. • Local Representation: Around 60 Sri Lankan travel and tour agents participated to explore new business avenues, strengthen international buyer links, and expand market share across the region. • Key Market Focus: The initiative targets the high-yield Middle Eastern market, driving demand in leisure, luxury, family, wellness, and experiential tourism. • Strategic Offerings: Promoted primary attractions including nature, heritage, and adventure, alongside sector diversification into wellness, marine tourism, cultural tourism, destination weddings, and MICE tourism to support national tourism growth.

Tourism, Hospitality & Leisure
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Port City Colombo Positions to High-Yield Urban Tourism & Talent Retention 📈

• Overall Figures & Yield Dilemma: Sri Lanka recorded ~2.36M international arrivals in 2025 (+15% YoY), but earnings grew slower to ~$3.2 Bn, highlighting the need to boost per-visitor spend. • Lifestyle & Regional Infrastructure: Introduces South Asia's first downtown duty-free zone, a 200–250 vessel yacht marina, and 1.7 km of public beach integrated with the CBD to build a high-spend urban tourism model. • Corporate & Investment Traction: Over 200 companies applied to operate; 175+ approved from global markets (UAE, Singapore, China, UK, US, Australia). • Services & Talent Focus: Blends commercial space with IT/BPM, higher education, and international schooling to attract foreign talent and boost services exports.

Construction & Real Estate
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GS1 Lanka Drives Sri Lanka’s Shift to 2D Barcodes 📈

• Overview: GS1 Lanka announced its push toward adopting 2D barcodes (such as QR codes and Data Matrix codes) at its 10th AGM, preparing local businesses for the global GS1 Sunrise 2027 initiative to upgrade retail checkout systems by end-2027. • Strategic Impact: - 2D barcodes allow consumers to access trusted information on product origin, ingredients, authenticity, and usage. - Supports supply chain efficiency, traceability, and digital product verification across key sectors like retail and healthcare. - A new retail information platform will help member brands enhance packaging utility and digital consumer engagement. • Local Adoption: - GS1 Lanka continues awareness programs for local entrepreneurs, SMEs, manufacturers, and exporters. - Platform participation has reached over 5,500 registered member companies on GS1 Activate and Verified by GS1, with more than 20,000 product records uploaded. Note: Based on official AGM statements provided by GS1 Lanka. For a visual breakdown of how 2D barcodes and the Sunrise 2027 initiative are reshaping retail supply chains, watch [GS1 Sunrise 2027: Why Every Store Is Quietly Switching Barcodes](https://m.youtube.com/watch?v=SsuSemDsb6k). This video clearly explains the transition from 1D to 2D codes, their impact on inventory and traceability, and how businesses can prepare.

Professional & Business Services
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📊 Global Business Climate Subdued as Geopolitical & Cost Pressures Rise

Global business sentiment remains largely unchanged and subdued, with the Global Consumer Goods Industry Index edgeing up slightly to 100.4 in mid-2026 (from 100.1). Shift in challenges highlights mounting pressure on global supply chains—critical for trade-reliant economies like Sri Lanka. • Global Sentiment & Regional Breakdown: - Asia: Stronger sentiment, scoring +4.2 points above the global index. - America: +2.3 points above average. - Europe: Remains lagging, -1.2 points below average. - Sector-wise, manufacturing shows slightly higher confidence than trade and services. • Key Business Challenges: - Geopolitical Risk & Uncertainty: 84% of manufacturers (up from 52%) and 63% of trade/services (up from 46%) identify wars and conflict as major threats. - Cost Pressures: 66% of manufacturers report rising production costs (up from 51%), alongside escalating procurement expenses. - Trade Barriers: High exposure to tariffs affects 74% of businesses in America, 66% in Asia (up from 58%), and 42% in Europe (up from 33%). • Technology & AI Adoption: - AI Usage: Heavily concentrated in content creation and media applications. - Adoption Barriers: Growth is limited by lack of internal expertise, integration challenges with legacy systems, budget constraints, and data security risks. • Outlook: Moderate overall, showing early signs of turnover recovery in manufacturing, though broader economic growth remains cautious amid ongoing volatility.

Food, Beverage & Consumer Goods
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IESL to Host National Engineering Conference 2026 to Drive Policy Reform 📈

• Event Details: The Institution of Engineers, Sri Lanka (IESL) will convene the National Engineering Conference (NEC) 2026 on 24 September 2026 at Cinnamon Grand Colombo, targeting policymakers, industry leaders, and development partners. • Four Policy Focus Areas: • Engineering Education: Proposals call for clear career frameworks, defined competencies, and accredited qualifications for engineers, technologists, and technicians to address skill needs in ICT/BPM and industrial growth. • Energy Transition: Focuses on power sector reforms, expanding solar and wind generation alongside robust grid infrastructure, storage, transparent tariffs, and balancing national energy security. • Transport Sector: Proposals advocate for an integrated, multimodal public transit system featuring digital ticketing, optimized logistics, reduced transit costs, and improved regional connectivity. • Building Fire Safety: Urges the creation of a National Building Fire Safety Act and an independent authority to enforce regular inspections, technical compliance, and safety standards across nationwide infrastructure.

Manufacturing & Industrials
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🧠 Emerging Research on Synthetic Neuroregulatory Peptide Semax

• Overview: Investigational synthetic heptapeptide derived from adrenocorticotropic hormone fragment research; noted for high biochemical persistence and regulatory signaling capabilities. • Key Pathways: Linked to indirect modulation of melanocortin-associated pathways, regulating energy balance, stress adaptation, and inflammatory response. • Neurochemical Dynamics: Theoretical interaction with brain-derived neurotrophic factor (BDNF) to aid synaptic plasticity, alongside modulatory effects on monoamines (dopamine, serotonin, norepinephrine). • Cellular & Genetic Impact: Influences oxidative balance, cytokine-mediated neuroinflammation, and large transcriptomic networks linked to adaptive cellular functions. • Data Context: Findings based entirely on provisional biomedical research literature; no direct Sri Lankan market data or macroeconomic metrics reported in text.

Healthcare & Pharmaceuticals
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🚢 SLANA Calls for Urgent Action on Colombo Terminal Charges to Protect Logistics Competitiveness

The Sri Lanka Association of NVOCC Agents (SLANA) has warned that rising terminal handling charges (THC) and uncompetitive practices are eroding Colombo's appeal as a shipping hub, putting severe financial strain on local SME operators. • Key Issues & Economic Impact • Uncompetitive THC structures and backlogs of uncleared empty containers at the Port of Colombo are forcing NVOCC operators into regional disadvantages. • SLANA urges the Government to expedite a review committee on THC to align Sri Lanka's land-based costs with international standards. • Unresolved operational delays threaten Sri Lanka’s broader national target of transitioning from a basic transhipment port into a fully integrated regional logistics hub (incorporating warehousing, distribution, and value-added services). • Regional Trade & Sector Breakdown • Over 75 NVOCC lines currently sustain regional connectivity across India, China, the Far East, and the Middle East. • High dependency on regional trade: China and India account for ~44% of Sri Lanka's imports, with India serving as the 2nd largest export market. • The majority of SLANA members are domestic SMEs critical for national employment, tax revenue, and supply chain resilience during global disruptions. • Strategic Requirements • SLANA advocates for predictable maritime policies, reasonable terminal fees matching regional ports, and immediate Customs/Ports Ministry intervention via a Cabinet paper to clear container backlogs.

Transport, Logistics & Infrastructure
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Malwatte Valley Modernises Plantations via High-Density Planting & Tech Innovation 📈

• Strategic Crop Diversification: Due to heavy rainfall (7,000–10,000 mm) and Pestalotiopsis Leaf Fall Disease making traditional rubber unviable in Avissawella, Malwatte converted fields into 400 ha of cinnamon, 300 ha of new tea, and tropical fruits (rambutan and durian). • Mechanisation Breakthrough: Developed a patent-pending cinnamon peeling machine engineered by its renewable energy team, cutting reliance on skilled labor (which costs up to 50% of the product's final value) and improving operational productivity. • High-Density Cultivation: Adopting global standards by planting tea at 40,000 VP plants per hectare (vs. traditional 8,000–13,500 plants/ha), accelerating crop maturity. Mechanised tea plucking solution development is currently underway. • Factory & Processing Automation: Streamlined conveyor systems, rolling rooms, and sorting processes, while consolidating tea manufacturing into fewer, highly automated, and renewable energy-powered facilities. • Global Footprint: As a top 20 Sri Lankan tea exporter, Malwatte serves export markets across the Middle East, Europe, Russia, China, Australia, and Japan with full field-level supply chain traceability.

Agriculture, Plantations & Fisheries
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SLPA Chief Outlines 5 Pillars to Future-Proof Sri Lanka’s Logistics Industry 🚢📈

Speaking at the 9th AGM of the Sri Lanka Association of NVOCC Agents (SLANA), Sri Lanka Ports Authority (SLPA) Chairman Dr. Parakrama Dissanayake emphasized that future industry leadership will belong to those who anticipate change, rather than the largest or cheapest operators. • 5 Priority Pillars: • Resilience: Build redundant supply chains against trade route disruptions and geopolitical shocks (e.g., how the tea sector navigated the Strait of Hormuz closure). • Digitalisation: Modernize trade documentation and data systems to eliminate paper dependency and improve efficiency. • Sustainability: Proactively report carbon footprints before environmental standards become mandatory cargo requirements. • Human Capital: Consistently invest in sector training, noting workforce quality directly dictates organizational success. • Policy Advocacy: Engage directly with the Government early, shifting from reactive responses to proactive policy formulation.

Transport, Logistics & Infrastructure
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🌊 Sri Lanka Fisheries Sector: Lessons for a Sustainable Blue Economy

Sri Lanka’s fisheries sector is shifting focus from increasing catch volumes to value addition, ecosystem protection, and inclusive governance to ensure long-term sustainability. • Sector Overview (2024) • Total Production: ~410,760 MT (marine fisheries ~308,430 MT; inland & aquaculture ~102,330 MT) • Export Earnings: ~US$ 285 Mn • Livelihoods: ~189,000 marine fishing households dependent on the sector • Strategic Transformation & Value Chain • Transitioning from traditional methods like beach-seine (Ma-del)—which previously accounted for over 40% of fish landings—to mechanization and value addition. • Focus on reducing post-harvest losses, improving cold chains, quality certification, and traceability rather than over-expanding harvest capacity. • Highlighting the unrecorded economic contributions of women in processing, trading, and post-harvest operations. • Regional Insights & Climate Resilience • Diversifying inland fisheries and aquaculture alongside ocean governance, drawing lessons from regional models (Maldives, Bangladesh, Cambodia). • Integrating climate adaptation policies to safeguard livelihoods against shifting fish stocks, weather risks, and rising fuel costs.

Agriculture, Plantations & Fisheries
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🤖 AGI: From Excel Assistance to New World of Human Capability 📈

• Overview: Generative AI is democratizing technical capabilities, allowing non-experts to execute complex data analytics via natural language. Artificial General Intelligence (AGI) promises to advance this further—transitioning from task support to a full partner in strategic decision-making, healthcare, education, and scientific research. • Economic & Sector Impacts: • Boosts efficiency in banking, auditing, and financial services by transforming business decision-making and forecasting. • Empowers local SMEs and public institutions to access high-level advisory and operational support without heavy consultancy costs. • Key Risks & Workforce Implications: • Threatens routine roles in administration, reporting, and customer service through automation. • Presents operational challenges around data privacy, governance, accountability, transparency, and potential technology inequality. • Strategic Preparation: Professionals must upskill in critical thinking, prompt engineering, data literacy, and risk management to maintain human oversight, ethics, and accountability as AI integrates into the national economy.

Technology & Digital Services
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Bambalapitiya Railway Station Reopens Following Major Upgrade 🚆

• Key Highlights: The renovated Bambalapitiya Railway Station officially reopened on September 10, 2026, aimed at providing a cleaner, safer, and more comfortable environment for commuters. • Partnership & Framework: Carried out under the Government’s Clean Sri Lanka and Dream Destination programs in coordination with the Transport, Highways, and Urban Development Ministry. • Community Contribution: The restoration was sponsored by Sri Lanka's Dawoodi Bohra community—a Muslim group of ~2,500 members with a nearly two-century history in the country—highlighting civic partnership and public service. • Government Perspective: Prime Minister Dr. Harini Amarasuriya commended the initiative as a benchmark model for shared responsibility in maintaining public infrastructure and spaces.

Transport, Logistics & Infrastructure
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Market News

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📈 Sri Lanka Rupee Weaker at 330.15/25, Bond Yields Rise in Volatile Market

• Foreign Exchange: The Sri Lankan rupee softened to 330.15/25 against the US dollar spot on Tuesday, down from 329.15/35 on Monday. Telegraphic transfer rates stood at 324.75 buying and 333.75 selling for the US dollar, 372.28 buying and 386.06 selling for the Euro, and 436.99 buying and 451.09 selling for the Pound. • Government Securities: Bond yields quoted higher across multiple maturities in a volatile trading environment. • 2028 Bond (15.10.2028): Quoted at 10.45/65% • 2029 Bond (15.12.2029): Rose to 10.75/90% (up from 10.70/85%) • 2030 Bond (01.08.2030): Edged up to 11.10/20% (up from 11.10/15%) • 2033 Bonds: 01.06.2033 quoted at 11.80/90%; 01.11.2033 rose to 11.90/12.00% (up from 11.75/85%) • 2034 Bond (15.10.2034): Increased to 11.95/12.05% (up from 11.93/12.00%) • Equity Markets: The Colombo Stock Exchange traded slightly higher, reflecting modest gains. The All Share Price Index (ASPI) gained +0.05% (+11.61 points) to reach 21,325.53, while the S&P SL20 rose +0.11% (+6.63 points) to 6,000.96.

Capital Markets & Investment
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📈 Sri Lanka Stocks Trade Up; Vidullanka Gains on Greenfield Renewable Project

• Market Performance: CSE indices traded up on Tuesday morning. The benchmark ASPI rose 0.06% (+13.77 pts) to 21,327.69, while the S&P SL20 grew 0.16% (+9.48 pts) to 6,003.81. Overall market turnover reached Rs. 236.16 Bn. • Sector Breakdown & Top Movers: Banking led market turnover, generating Rs. 116.54 Bn. - Top Gainers: Sunshine Holdings (+3.10% to Rs. 29.90), John Keells Holdings (+0.52% to Rs. 19.40), and Sampath Bank (+0.18% to Rs. 140.00). - Top Decliners: Royal Ceramics Lanka (-1.67% to Rs. 47.10), Central Finance (-0.68% to Rs. 220.00), National Development Bank (-0.45% to Rs. 110.50), Richard Pieris (-0.37% to Rs. 27.20), and Commercial Bank (-0.12% to Rs. 204.75). • Key Corporate Highlights: Vidullanka shares gained 1.85% to trade at Rs. 22.00 following an initial share subscription of Rs. 100 Mn in Vidul Biomass II (Pvt) Ltd. The company is undertaking the greenfield 6.6MW Medawachchiya Dendro Power Project in Anuradhapura, carrying a total project cost of US$ 16.1 Mn and a total equity commitment of ~Rs. 1.3 Bn, reflecting ongoing investment in Sri Lanka's renewable energy sector.

Capital Markets & Investment
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🏛️ Sri Lanka Raises Extra Rs8Bn via Tap Issuance for Treasury Bonds

• Total Issuance: The Public Debt Management Office sold an additional Rs 8,000 Mn in bonds on tap following an auction, bringing the total bonds issued for the week to Rs 158 Bn (exceeding the initial Rs 150 Bn offer). • Tap Allotments & Yields: • 2034 Bond (LKB00934J156): Sold at a weighted average yield rate of 11.96% (Maturity: Oct 15, 2034). • 2037 Bond (LKB01237G019): Sold at a weighted average yield rate of 12.08% (Maturity: Jul 01, 2037). • Market Demand: Total market subscription for the tap option reached Rs 15,402 Mn. • Auction Context: Follows the main auction where Rs 150 Bn was raised across 2030, 2034, and 2037 maturities. Settlement date is set for Sep 15, 2026.

Capital Markets & Investment
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📈 Global Markets Waver as Crude Surges & Central Banks Prepare Rates Hike

• Macro Overview: Asian equity markets struggled as escalating Middle East tensions drove crude prices higher, raising global inflation risks ahead of key policy decisions by the US Federal Reserve and the Bank of Japan. • Energy & Commodity Markets: • Brent crude rose 1.21% to US$ 106.96/bbl; US crude increased 1.27% to US$ 102.68/bbl following Houthi attacks on Saudi oil infrastructure. • Rising global oil prices compound inflationary risks for energy-importing nations, impacting fuel pricing structures and import costs. • Spot gold eased 0.15% to US$ 4,291.59/oz, while silver fell 0.31% to US$ 63.03/oz. • Monetary & Bond Markets: • Markets price in a 90% chance of a 25 bps rate hike by the US Fed, its first since mid-2023. • Benchmark 10-year US Treasury yields touched 5.00%. • Bank of Japan is expected to raise its benchmark policy rate by 25 bps to 1.25% to support the yen. • Regional Market Movements: • MSCI Asia-Pacific ex-Japan dipped 0.12%. • South Korea's KOSPI declined 0.25%, while Japan's Nikkei edged up 0.19%. • US Dollar Index rose 0.05% to 99.53; USD/JPY advanced 0.17% to 154.61.

Capital Markets & Investment
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📈 Sri Lankan Secondary Bond Market & Forex Update: Yields Rise Amid Bearish Sentiment

• Secondary Bond Market Overview: Secondary government securities yields extended their upward trajectory amid geopolitical tensions in the Middle East, elevated global oil prices, and persistent hawkish expectations from major central banks. Despite market pressures, transaction volumes remained robust, supported by sizeable block trades. • Yield Curve Movements: • 2029 Maturities: 15.09.29 and 15.12.29 traded at 10.70% • 2030 Maturities: 01.08.30 (10.90%–11.15%), 15.10.30 (11.10%–11.22%) • 2031–2033 Maturities: 01.12.31 (11.52%–11.62%), 01.11.33 (11.85%) • 2034–2037 Maturities: 15.06.34 and 15.09.34 (12.00%), 15.10.34 (11.96%–11.98%), 15.08.36 (12.00%), 01.07.37 (12.05%–12.08%) • Money Market Liquidity: • Net liquidity surplus stood at Rs. 131.40 Bn. • Central Bank SDFR standing deposits: Rs. 58.06 Bn (at 8.25%); SLFR borrowings: Rs. 3.16 Bn (at 9.25%). • Central Bank absorbed Rs. 76.50 Bn via repo auctions (Overnight: Rs. 56.50 Bn at 8.72%; 7-day: Rs. 20.00 Bn at 8.75%). • Weighted average call money rate: 8.88%; repo rate: 8.96%. • Foreign Exchange (Forex): • USD/LKR spot rate depreciated to Rs. 329.15/329.35 (compared to Rs. 328.60/328.70 previously). • Total traded volume (11 Sept): US$ 86.23 Mn.

Capital Markets & Investment
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📉 CSE Starts New Week in Red Amid Global Uncertainty

• Market Indices & Breadth: The benchmark ASPI dropped 69 points (-0.3%) following afternoon selling pressure, while the S&P SL20 slipped 8 points (-0.1%). Market sentiment was heavily negative, with 141 decliners outnumbering 66 gainers. • Turnover & Investor Activity: Total turnover stood at Rs. 1.5 Bn, slightly above last week's Rs. 1.4 Bn average. Foreign investors remained net sellers with outflows of Rs. 94.7 Mn. High net worth and institutional activity concentrated in JKH (Rs. 255 Mn), SAMP (Rs. 233 Mn), and LIOC (Rs. 221 Mn). Retail interest was seen in Industrial Asphalts, Browns Investments, and HNB Finance. • Key Drag & Sector Movers: Top negative contributors dragging the index included DIAL (-7 pts), SPEN (-6 pts), LOLC (-4 pts), and CCS (-4 pts). Notable price declines were recorded in ASIR (-3.8%), CCS (-2.1%), SPEN (-2.1%), DIAL (-1.0%), and SUN (-1.0%). • Market Drivers: Trading remained cautious due to elevated global oil prices and Middle East geopolitical tensions, keeping buyers on the sidelines.

Capital Markets & Investment
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📈 Foreign Investors Buy Over US$ 8.5 Mn in Sri Lankan Rupee Bonds

• Weekly & Consecutive Inflows: Foreign investors bought a net LKR 2.75 Bn (US$ 8.5 Mn) in government securities in the week ended September 11. This extends foreign buying to 13 straight weeks, totaling LKR 92 Bn (US$ 280 Mn) since June 19. • Record Foreign Holdings: Total foreign holding in rupee bonds reached a record LKR 213.4 Bn, up from LKR 72.1 Bn total inflow YTD and LKR 71.5 Bn in 2025. • Currency Stabilization: Inflows stabilized as the rupee recovered to 332 against the US dollar after dropping to 354 in May. The rupee has depreciated 5.7% YTD in 2026 amid elevated oil import costs and Middle East tensions. • Monetary Policy Context: Deflationary policies previously supported inflows. However, a 100 bps rate hike in May addressed recent inflationary pressures triggered by fuel price increases.

Capital Markets & Investment
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📉 CSE Closes Lower on Monday; Banks Lead Turnover

• Market Performance: The benchmark ASPI dropped 0.32% (-68.82 points) to close at 21,313.92. The liquid S&P SL20 fell 0.14% (-8.13 points) to end at 5,994.33. Overall market turnover reached Rs. 1.55 billion. • Sector Breakdown & Value Drivers: The banking sector dominated market activity, leading turnover with Rs. 309.87 million. Top gainers included Carson Cumberbatch (+2.05% to Rs. 735.00), plantation sector stock Watawala Plantations (+1.60% to Rs. 44.50), Central Finance (+0.68%), and Commercial Bank (+0.24%). Key drag on indices came from Aitken Spence (-2.12%), Ceylon Cold Stores (-2.07%), LOLC Holdings (-1.40%), and Dialog Axiata (-1.04%). • Corporate Updates: Anilana Hotels & Properties disclosed that its hotel assets in Nilaveli, Trincomalee, and Pasikudah were acquired by Sampath Bank under the Recovery of Loans by Banks Act. The company has challenged the resolution in court and filed an application in the Commercial High Court regarding a prospective investor's offer of Rs. 1.2 billion to reach a compromise with the bank.

Capital Markets & Investment
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Sri Lanka Rupee Closes Weaker; Bond Yields Rise 📉

• Foreign Exchange Market: The Sri Lankan rupee closed weaker in the spot market at 329.15/35 against the US dollar on Monday, down from morning levels of 328.90/329.00. • Government Bond Market: Yields across key government bond maturities closed higher, indicating upward pressure in the secondary market: • 15.12.2029 bond: Up to 10.70/85% (from 10.60/65%) • 01.08.2030 bond: Up to 11.10/15% (from 10.85/90%) • 15.10.2030 bond: Up to 11.15/35% (from 10.85/95%) • 15.12.2032 bond: Up to 11.60/65% (from 11.30/45%) • 01.11.2033 bond: Up to 11.75/85% (from 11.70/80%) • 15.10.2034 bond: Up to 11.93/12.00% (from 11.85/95%) • Other Bond Quotations: • 15.09.2027 bond: Quoted at 9.80/95% • 01.09.2028 bond: Quoted at 10.35/50% • 01.07.2037 bond: Quoted at 12.05/15%

Capital Markets & Investment
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📊 Sri Lanka Rupee Weakens Slightly; Bond Yields & Stocks Flat

• Currency Market: The Sri Lanka rupee opened slightly weaker against the US dollar in the spot market at 328.90/329.00. • Dollar TT rates: Buying LKR 324.10 | Selling LKR 333.10 • Euro TT rates: Buying LKR 373.13 | Selling LKR 386.91 • Pound TT rates: Buying LKR 437.13 | Selling LKR 451.24 • Government Bonds: Yields held broadly steady across maturities: • 15.03.2028: 10.00/15% • 15.12.2029: 10.60/65% • 01.08.2030: 10.85/90% • 15.12.2032: 11.30/45% • 15.10.2034: 11.85/95% • Stock Market: The Colombo Stock Exchange traded flat to marginally higher: • ASPI: Up 0.01% (+2.70 points) to 21,385.44 • S&P SL20: Up 0.23% (+14.03 points) to 6,016.49

Capital Markets & Investment
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📈 Sri Lanka Stocks Recover After Morning Dip

• Market Performance: Colombo Stock Exchange (CSE) indices saw a modest recovery in morning trade. The All Share Price Index (ASPI) rose marginally by 3.72 points (+0.02%) to 21,379.02, while the S&P SL20 increased by 3.03 points (+0.05%) to 6,005.49. • Key Drivers: • Top Gainers: Banking and property sectors provided support, led by Commercial Bank (+0.61% to Rs. 205.75), Hatton National Bank (+0.46% to Rs. 382.75), and RIL Property (+1.66% to Rs. 24.50). • Top Drag: Losses were registered in LOLC Holdings (-1.23% to Rs. 460.00), Hayleys (-0.44% to Rs. 228.25), and Dialog Axiata (-0.21% to Rs. 47.80). • Turnover & Sector Breakdown: Total market turnover stood at Rs. 42.1 million. Capital goods led sector turnover, generating Rs. 15.38 million.

Capital Markets & Investment
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Asian AI Stocks Slump as Top Lab Tech CEOs Urge Pace Slowdown 📉

• Market Impact & Sector Declines - SoftBank Group: Tumbled up to 13.2% in Japan. - Memory & Chipmakers: Kioxia down 9.8%, Tokyo Electron down 3.7%, TSMC down 1.2%, SK Hynix down 5.3%, Samsung Electronics down 3.7%, CXMT down 2.7%, and SMIC down 1.4%. - AI & Hardware Suppliers: Zhongji Innolight fell 4.1%, MiniMax dropped 5.4%, and Z.ai fell up to 10.5% post-discounted share placement. • Driver of the Slump - AI CEO Warnings: Anthropic CEO Dario Amodei called to slow model capability advancement due to misuse risks, backed by xAI's Elon Musk and OpenAI's Sam Altman. - OpenAI IPO Postponed: Sam Altman announced OpenAI will not proceed with an IPO this year over safety concerns. - Safety & Geopolitics: Anthropic detailed threats including weapons creation and cyber ops using Claude AI, while Middle East uncertainties continue to weigh on investor sentiment. • Global Context - U.S. President Donald Trump opposed slowdown calls, emphasizing U.S. industry leadership. - Upcoming U.S.-China bilateral talks are set to address AI safety.

Capital Markets & Investment
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Regulatory & Policy News

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📈 CA Sri Lanka Unveils Comprehensive Proposals for Budget 2027

• Strategic Focus: Advocates for a compliance-led revenue growth model emphasizing digital transformation, tax fairness, and formalization over statutory rate hikes. • Personal Tax Relief: Proposes raising the Advance Personal Income Tax (APIT) threshold to Rs. 200,000/month, providing relief to middle-income earners while estimating a revenue contraction of ~Rs. 26.01 Bn against the 2026 baseline (~Rs. 79.08 Bn vs 2025 actuals). • Digital Infrastructure: Calls for an integrated data ecosystem combining a National Taxpayer Information Network (NTIN) and Universal Business Identification Number (UBIN). Suggests an AI-assisted Tax Compliance Risk Engine for high-risk detection (VAT fraud, shell companies) and automated Customs-Import reconciliation. • SME Support: Recommends a 4-tier corporate income tax framework (Micro: up to Rs. 20 Mn; Small: up to Rs. 350 Mn; Medium: up to Rs. 1 Bn; Large: >Rs. 1 Bn) with proportional compliance, simplified record-keeping, and CBSL-supported concessionary lending. • Sector & Structural Reforms: Highlights addressing tax erosion in tourism via a Digital Tourism Booking Framework, tackling 300k illegal DTH connections (~Rs. 1.5 Bn potential tax recovery), restoring cigarette tax share toward the 75% WHO benchmark (~Rs. 17.3 Bn recovery), and preparing for the OECD 15% global minimum tax (Pillar Two / QDMTT). • Taxpayer Rights & IRD Capacity: Recommends an Independent Taxpayer Ombudsman, a Right to Self-Correction, holding over tax collection during appeals, filling 223 IRD senior vacancies, and hiring specialized data scientists.

Economy-wide / Cross-sector
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Ex-Envoy Urges Swift Finalisation of US-Sri Lanka Tariff Agreement 📈

• Market & Export Significance: The US accounts for 25% of Sri Lanka's total exports, making the formalisation of trade terms crucial for long-term export security and attracting foreign direct investment. • Tariff Concessions & Negotiations: Successful diplomatic negotiations progressively reduced proposed tariffs on Sri Lankan goods from a high of 44% down to 33%, and eventually to 10%. • Current Progress: Deliveries at the SLID Annual Members Meeting confirm that 90% of the agreement content is finalized. Remaining differences are being negotiated to lock in favorable rates and provide predictability for domestic exporters. • Reciprocal Terms: Countries finalizing trade agreements with the US must grant either full or near-complete duty-free access to American imports. • Call to Action: Former Ambassador Mahinda Samarasinghe strongly advised the Government to conclude domestic legal processes rapidly to formalize the deal and maintain market access for key national industries such as apparel & textiles and other major export sectors.

Economy-wide / Cross-sector
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⚖️ Judicial Tenure & Reform: Balancing Backlogs and Independence

• Core Issue: Debates surrounding the extension of judicial retirement tenure vs. comprehensive reform of the justice delivery system to clear heavy case backlogs. • Key Global Comparisons: • UK: Raised judicial retirement age from 70 to 75 in 2022 across serving and future judges following public consultation. • Australia: Fixed a age limit of 70 prospectively in 1977. • Canada & New Zealand: Maintain retirement ages at 75 and 70 respectively. • India: Retains retirement at 65 for Supreme Court and 62 for High Courts, with ongoing debates on district judiciary tenure. • Legal & Constitutional Considerations: • Doctrine of Necessity: Analyzed as a narrow common-law exception of last resort to prevent failure of justice, provided it does not cause substantial injustice. • 2022 SC Determination: Inland Revenue Bill ruling affirmed that constitutional changes to tenure affecting incumbent judges impinge upon judicial independence. • Systemic Bottlenecks & Reform Roadmap: • Over 800,000 pending cases mainly concentrate in Magistrates' Courts, highlighting severe institutional and administrative delays. • Calls for a national Justice Performance Dashboard to target delays across police, forensics, prosecution, and court scheduling. • Recommends criminal justice reforms, including probation, supervised release, and electronic monitoring to alleviate severe prison overcrowding.

Professional & Business Services
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📈 New Tax Policy Threatens Growth in Sri Lanka's Service Export Sector

Sri Lanka has ended its nearly three-decade tax exemption on service exports, subjecting foreign income to a 15% tax under the Inland Revenue (Amendment) Act from April 2025. Industry experts warn this fiscal adjustment could undermine sector competitiveness, encourage brain drain, and drive transactions into the informal economy. • Sector Overview & Economic Contribution • The IT/BPM and knowledge-based services sector generates over US$ 3.00 Bn+ annually (provisional official data states US$ 3.47 Bn in service exports last year). • Employs more than 144,000 skilled professionals across Sri Lanka. • National strategic targets aim for US$ 11.00 Bn in service exports by 2030. • New Tax Framework Structure • Individual Freelancers & Professionals: Progressive rate starting with Rs. 150,000 exempt, 6% up to a 15% maximum (if remitted via local banks). • Corporate Exporters: Flat 15% tax rate on service export profits (down from initial IMF proposal of 30%). • Non-Remitted / Unverified Income: Subject to standard corporate rates up to 30% or individual rates up to 36%. • Key Industry & Economic Risks • Joint warnings from industry bodies (SLASSCOM, FITIS, BCS, CSSL) highlight risks of Sri Lanka becoming one of the highest-taxed regional jurisdictions compared to competitors like India, the Philippines, and Vietnam. • Highly mobile digital workers may adopt foreign workarounds (e.g., fintech, e-residency) or physically relocate, threatening the formal tax base. • Policy Recommendations • Gradually phase in taxes to align with long-term growth. • Pair tax policies with R&D credits and infrastructure incentives. • Establish simplified registration systems rather than expanding strict financial surveillance.

Technology & Digital Services
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⛽ Sri Lanka Explores Fuel Price Revisions Amid Private Retailer Losses

• Retailer Strain & Dry Pumps: Private fuel distributors face losses up to Rs. 160 per liter on diesel due to surging global crude prices (>US$ 100/bbl), causing supply restrictions and empty pumps at several filling stations. • State vs. Private Impact: The state-owned Ceylon Petroleum Corporation (CPC) reports a lower loss of Rs. 60 per liter on diesel—offset by refinery profits and previous month's forward orders. • Policy Options Under Review: Energy Minister Anura Karunathilaka announced the government is considering options to balance consumer protection and distributor viability: • Re-introducing targeted subsidies (similar to previous subsidies of Rs. 100/L for diesel and Rs. 20/L for petrol). • Implementing price bands with upper and lower limits, allowing private retailers to set competitive prices within the range. • Macro Context & Stocks: Despite supply disruptions at private pumps, official fuel stocks remain sufficient. Rising global prices and Middle East tensions continue to strain the national cost-reflective fuel pricing model required under Sri Lanka’s IMF program.

Energy & Utilities
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⚡ Energy Self-Sufficiency Urged as Priority for Sri Lanka’s Recovery

• Strategic Imperative: High dependence on imported fossil fuels leaves the nation vulnerable to external shocks, including volatile global fuel prices and climate risks. Establishing renewable energy self-sufficiency is vital to protect the economy, national production, and food security. • Power System Targets: Under the National System Operator’s Interim Report (2027-2029) submitted to PUCSL, Sri Lanka aims to boost renewable energy power generation to ~68% by 2029. This aligns with PUCSL’s mandate to increase green energy from 50% to 70% between 2025 and 2030. • Sector Bottlenecks & Thermal Burden: While rooftop solar energy has surpassed targets, wind power faces environmental, land, and financing constraints. Thermal generation reliance cost ~Rs. 150 Bn in imported coal and oil in 2025, a figure projected to rise amid global fuel supply instability. Urgent rollout of Battery Energy Storage Systems (BESS) and grid infrastructure is required. • Macro & Policy Context: State-led investment in energy infrastructure must take precedence over pure return-on-investment or utility profitability metrics. Policy shifts—such as moving away from strict IMF cost-recovery pricing to targeted public subsidies—can support off-grid solar power for rural agriculture, expand public transport, safeguard livelihoods, and lower utility costs as the current IMF program nears its conclusion in March 2027. _(Source: PUCSL Stakeholder Consultation Oral Submission, BMICH, Sept 2026)_

Energy & Utilities
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📈 Sri Lanka's Tax Compliance & Morale Challenge

Sri Lanka launched the "Badu Shakthi 2026" campaign to boost voluntary compliance, but structural fragile points persist despite strong revenue growth, based on provisional data and official reports. • Overall Revenue & Structural Imbalance: - Government tax revenue rose to ~Rs. 5.05 Trillion in 2025. - The direct-to-indirect tax ratio worsened from 28:72 to 23:77 (against a target of 60:40), placing a higher proportional burden on lower-income workers via VAT. • Taxpayer Registration vs. Active Base: - Over 13 Mn TINs issued since Jan 2024, but personal income tax files stand at just over 1.2 Mn. - Registered income taxpayers rose to 1.30 Mn (up from 1.09 Mn in 2024); VAT registrations grew from 21,227 to 33,187. - 40%+ of taxable transactions estimated to be cash-based and untraceable. • APIT & Corporate Filing Gaps: - Out of 2.55 Mn APIT employee records (2024/2025), 75.6% (1.92 Mn) had no tax deducted. - 83,397 high earners contributed Rs. 150.47 Bn (78.4%) of total APIT collections (Rs. 191.91 Bn). - 94% of large corporates filed returns on time vs. only 35% for small/medium corporates and 25% for individuals. • Arrears & Legal Framework: - Disputed IRD tax arrears spiked to Rs. 1.68 Trillion (77.6% of Rs. 2.16 Trillion total arrears) by end-2025. - Inland Revenue Amendment Act No. 11 of 2026 introduced strict penalties (fines up to Rs. 400,000 / up to 6 months imprisonment) for specified compliance failures.

Economy-wide / Cross-sector
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Govt. Moves to Address Shipping Sector Concerns 🚢

• Policy & Committee Setup: The Cabinet has prepared a paper to establish a dedicated committee to address critical concerns of the freight forwarding and Non-Vessel Operating Common Carrier (NVOCC) sectors. • Strategic Expansion: Ports Minister Anura Karunathilaka announced plans to transition the Port of Colombo from a primarily transshipment-driven facility into a comprehensive regional maritime & logistics hub. • Logistics Scope: Planned expansion includes free-zone and bonded warehousing facilities, regional distribution, container freight stations, logistics parks, bunkering, and e-commerce logistics to extract greater economic value. • Competitive Outlook: Proactive Government-private sector collaboration aims to improve efficiency, transparency, and predictability, fostering growth and employment for local businesses and SMEs amid global supply chain shifts.

Transport, Logistics & Infrastructure
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🚨 Opposition Raises Allegations of Customs Extortion Racket

• Allegations & Impact: SJB MP Mujibur Rahman accused Sri Lanka Customs of systematic extortion targeting importers and MSMEs. Alleged double-fining tactics and harassment are forcing businesses to halt operations, threatening employment, supply chains, and fiscal stability. • Fine Distribution Breakdown: • 50% allocated to Customs officials' rewards scheme • 20% to the Sri Lanka Customs Welfare Fund • 30% remitted to the National Treasury (~70% retained by officials) • Policy & Governance: Calls revived to update the Customs Ordinance and address corruption exposed in the 2023 IMF Governance Diagnostic Assessment, which highlighted high corruption risks and lack of internal accountability. • Revenue Performance: • 2025 Revenue: Rs. 2,557.54 Bn recorded (+64.2% YoY), exceeding the Rs. 2,241 Bn target. • 2026 8-Month Revenue: Rs. 1,852.50 Bn collected (+28.5% above target; ~25% YoY increase). • August 2026: Rs. 219.30 Bn collected against a Rs. 190.30 Bn target (+15.3% overshoot). • 2026 Target: Rs. 2,206.99 Bn (revised lower due to anticipated drops in vehicle imports).

Economy-wide / Cross-sector
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🚢 US-Sri Lanka Maritime Corridor Demands Urgent Structural Reforms

• Strategic Trade Footprint: US FMC Chairman Laura DiBella highlighted Colombo as a key maritime & transshipment node handling ~500,000 US-bound/originating containers worth ~$30 Bn. • Capacity vs Governance: Colombo’s ECT and CWIT expansions aim to double handling capacity by late 2027; however, structural modernization is required to capture market share against deep-water competition like India’s Vizhinjam. • Key Institutional Reform Priorities: • Independent Regulatory Body: Establish a Maritime Regulatory Commission to decouple port operations from sector regulation and eliminate SLPA's hybrid operator-regulator conflict. • Landlord Port Model: Transition SLPA into a dedicated landlord entity, concessioning terminal operations to private capital via BOT agreements. • High-Value Logistics Pivot: Shift focus from low-margin transshipment to paperless Multi-Country Consolidation (MCC) under Commercial Hub regulations. • Digital Modernization: Fully operationalize a Port Community System (PCS) to integrate Customs, terminals, and border agencies.

Transport, Logistics & Infrastructure
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Unlocking Sri Lanka's Maritime & Regional Strategy via BIMSTEC 🚢📈

• Strategic Alignment: BIMSTEC Secretary General Ambassador Indramani Pandey highlighted key collaboration areas with Sri Lanka, focusing on maritime affairs & blue economy, disaster mitigation, food security, counter-terrorism, and anti-money laundering. • Private Sector & Policy Integration: Following the launch of the Ceylon Chamber of Shipping (CCS), discussions emphasized establishing a structured BIMSTEC–Sri Lanka maritime dialogue. Ambassador Pandey expressed interest in formal engagement with CCS during his November 2026 visit. • Knowledge Infrastructure & Think Tanks: The dialogue underscored the need for a robust policy ecosystem in Sri Lanka, urging the private sector to invest in think tanks—drawing lessons from India's Pune International Centre model—to bridge academic research, economic policy, and governance. • National Focus: Sri Lanka's engagement with BIMSTEC must transcend foreign diplomacy, integrating into a broader national strategy that leverages shipping, maritime connectivity, and soft power to shape regional Indian Ocean dynamics.

Economy-wide / Cross-sector
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⚓ Navy Apprehends 65 Individuals in Islandwide Anti-Illegal Fishing Raids

• Enforcement Summary: The Sri Lanka Navy detained 65 persons during special operations targeting illegal fisheries practices across Sri Lankan waters from September 1 to 11, 2026. • Offenses & Seizures: • 63 individuals held for using unauthorized gear, winches, tractors, and illegal nets. • 2 individuals arrested in a joint Kattankudy operation with police, confiscating 44 illegal nets. • Equipment seized includes 26 dinghies, 2 tractors, and 1 cab. • Key Operational Zones: Eastern, Northern, and Southeastern Naval Commands executed raids covering areas such as Jamaliya, Foul Point, Ilankanthai, Pigeon Island, Nadithivu Island, Nilaveli, Chundikulam, and Arugam Bay. • Legal Action: Suspects, gear, and vehicles handed over to Department of Fisheries offices across Trincomalee, Batticaloa, Jaffna, Pottuvil, and nearby regions for prosecution.

Agriculture, Plantations & Fisheries
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Politics & Government Impact

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UK Devolved Nation Leaders Sign Self-Determination Agreement 📜

The leaders of the Scottish National Party (SNP), Plaid Cymru (Wales), and Sinn Féin (Northern Ireland) signed a joint agreement in Cardiff asserting their right to political self-determination and political autonomy outside Westminster control. • Key Political Developments: Party leaders John Swinney (SNP), Rhun ap Iorwerth (Plaid Cymru), and Michelle O’Neill (Sinn Féin) met as party representatives to align on constitutional language surrounding national independence and democratic rights. • Core Objectives: While timelines and referendum strategies vary across regions, the alliance aims to challenge UK central authority on independence processes. • Economic & Policy Scope: Beyond constitutional reform, the tri-nation agreement targets joint cooperation on renewable energy, European trade relations, and economic development. _Note: Content focuses on UK domestic political developments; no direct impact or data reported for Sri Lankan markets or sectors._

Economy-wide / Cross-sector
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🏛️ SLMC National List MP M.S. Abdul Wahid Resigns

• Resignation Details: Sri Lanka Muslim Congress (SLMC) National List Parliamentarian M.S. Abdul Wahid has resigned from his post, effective 14 September 2026. • Official Notification: Acting Secretary-General of Parliament Hansa Abeyratne formally notified Election Commission Chairman of the resignation, confirming a vacancy in the 10th Parliament. • Next Steps: The Election Commission was notified under Section 64(5) of the Parliamentary Elections Act, No. 1 of 1981 to initiate the legal process for filling the SLMC National List seat.

Economy-wide / Cross-sector
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📈 Ditwah Displacement & Recovery Progress Overview

• Current Status & Figures - Situation reports halted post-April 2026; UN OCHA's last report issued May 1, 2026. - 494 families remain in camps (down from 1,151 in March), including tent sites like Wavendon Estate, Ramboda, and Welimada. - 44,179 families stay with friends and family, reflecting a negligible drop from 45,034 in February. - Contrast: 2004 Tsunami recovery achieved 95% transitional shelter placement within 12 months. • Policy & Structural Recommendations - Replace the 25-member task force with a dedicated, full-time agency modeled after 2004’s TAFREN to drive direct housing creation. - Enforce parliamentary oversight on unspent recovery funds, including December 2025's Rs. 500 Bn supplementary allocation and Treasury donations, led by COPF or a Select Committee. • Construction Tariffs & Housing Sector Impact - Construction materials face high tariffs: tiles at 100.63% (plus SSCL), aluminum above 81%. - High import taxes double raw material costs at ports, reducing real housing delivery per allocated rupee. - Recommendation to immediately zero out para-tariffs (PAL, CESS) on construction materials to reduce home-building costs. _Note: Figures based on provisional data and available official situation reports._

Economy-wide / Cross-sector
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⚖️ Sri Lanka SC Invalidates Monk Pardon, Signals Shift in Rule of Law

• Legal Precedent: The Supreme Court invalidated former President Sirisena’s 2019 pardon of Galagoda Aththe Gnanasara (Bodu Bala Sena), affirming that presidential clemency cannot be used for self-serving or political purposes. • Contempt & Incitement: Gnanasara was originally sentenced to six years' imprisonment for contempt of court, following a history of inflammatory actions, including inciting communal violence in 2014. • Law Enforcement: In Batticaloa, Ampitiye Sumanarathana was arrested and remanded following allegations of threatening public service officials at the Geological Survey and Mines Bureau, marking a rare enforcement of the law regardless of religious status. • Systemic Accountability: Courts are facing an acid test with ongoing proceedings against senior clergy, such as Pallegama Hemarathana, signal potential progress toward equal application of the law across state and social sectors.

Economy-wide / Cross-sector
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⚖️ FCID Questions Gotabaya Rajapaksa in MiG-27 Inquiry Linked to Lasantha’s Murder

• Case Overview: Former President and Defence Secretary Gotabaya Rajapaksa was questioned by the Financial Crimes Investigation Division (FCID) regarding the controversial 2006 MiG-27 procurement deal. • The MiG-27 Deal: The Sri Lanka Air Force transaction was presented as a government-to-government deal. Investigation reveals shell company Bellimissa Holdings allegedly siphoned over US$ 14 Mn. • Key Events & Coverage: • The Sunday Leader Editor Lasantha Wickrematunge exposed the alleged corruption before his assassination. • CID filings indicate military intelligence personnel (code-named 'Tripoli Platoon') were allegedly involved in the killing and subsequent cover-up. • Two Tamil civilians were allegedly abducted, murdered, and their motorcycle burned to frame the LTTE. • Key CID investigator Nishantha Silva fled the country in 2019 due to safety concerns. • Legal Status: FCID questioning does not constitute a legal conviction. Justice remains pending for the families of Lasantha Wickrematunge, the two deceased civilians, and the wider media community. _Note: Summary based on provisional case details and ongoing investigations._

Telecommunications & Media
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German Parliamentary Delegation Visits Sri Lanka to Strengthen Bilateral Ties 🇱🇰🇩🇪

A four-member delegation from the German South Asia Parliamentary Group, led by MP Nicklas Kappe, will undertake a three-day official visit to Sri Lanka from September 15 to 17, 2026. • Diplomatic Engagements: Accompanied by Chargée d’Affaires a.i. Sarah Hasselbarth, the multi-party delegation will hold key meetings in Colombo, including courtesy calls on Prime Minister Dr. Harini Amarasuriya, Foreign Affairs Deputy Minister Arun Hemachandra, and Deputy Speaker of Parliament Dr. Salih Rizvie. • Stakeholder Discussions: The itinerary includes high-level engagements with the Sri Lanka Germany Parliamentary Friendship Association, Opposition members, civil society, and local business leaders. • Key Site Visits: The delegation is scheduled to tour the Port of Colombo—a crucial hub for Sri Lankan trade sectors like apparel & textiles, tea, and rubber destined for European markets. • Strategic Focus: Discussions will center on gaining first-hand insights into Sri Lanka's recent economic progress and exploring targeted avenues to further strengthen bilateral diplomatic and economic relations.

Economy-wide / Cross-sector
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Opposition MPs Boycott 10th PC Elections Select Committee Meeting 📈

• Key Action: Four Opposition Members—Ranjith Madduma Bandara, Mano Ganesan, Shanakiyan Rasamanickam, and Nizam Kariapper—boycotted the 10th meeting of the Parliamentary Select Committee on Provincial Council Elections due to lack of progress and urgency. • Offered Solutions: - Election Commission Proposal: Conduct polls under the current proportional representation system with a mandatory 25% representation for women. - Legislative Option: A Private Member’s Bill submitted by Shanakiyan Rasamanickam is currently on the Order Paper awaiting parliamentary approval to form the legal framework. • Political Context: Opposition members highlighted page 128 of the National People’s Power (NPP) 2024 Presidential Election Manifesto, which pledged to hold Provincial Council and Local Government elections within one year of taking office. • Democratic Impact: Provincial Councils have remained without elected representation for several years, denying citizens their local democratic rights; Opposition members warned of further unspecified action if a firm timeline is not provided.

Economy-wide / Cross-sector
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🤝 New Chinese Envoy Meets Former President Mahinda Rajapaksa

• Bilateral Discussions: Newly appointed Chinese Ambassador to Sri Lanka, Wei Huaxiang, held discussions with former President Mahinda Rajapaksa at his residence to focus on strengthening overall Sri Lanka-China bilateral relations. • Political Party Cooperation: The meeting emphasized fostering stronger party-to-party ties and ongoing cooperation between the Sri Lanka Podujana Peramuna (SLPP) and the Communist Party of China (CPC). • Diplomatic Relations: Rajapaksa acknowledged the Ambassador's remarks celebrating the long-standing friendship between both nations established during his presidency. Envoy Wei Huaxiang recently assumed his official duties as China's representative to Sri Lanka.

Economy-wide / Cross-sector
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⚖️ Sri Lanka UNHRC Stand & Domestic Reality

• UNHRC Response: Sri Lanka urged the UNHRC to avoid open-ended country-specific mandates. Ambassador Sumith Dassanayake advocated for periodic reviews with measurable outcomes. • Domestic vs International: Sri Lanka continues to reject external inquiry mandates extended through late 2027 while emphasizing internal mechanisms. High-profile military figures remain celebrated domestically despite foreign sanctions. • Economic Links: Human rights oversight remains closely linked to Sri Lanka's economic stabilization, affecting critical trade benefits like the apparel & textiles sector's access to European export markets under EU GSP+ preferences. • Key Scenarios: While the NPP administration reopened select extrajudicial cases, major issues like missing persons remain stalled, keeping Sri Lanka under international scrutiny through the scheduled 2027 comprehensive UN report.

Economy-wide / Cross-sector
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UNHRC Session: Sri Lanka Urged to Shift Focus from War Casualty Estimates to Truth-Seeking 🕊️

• Key Casualty Estimates & Data Revisions: - UN Secretary-General's Panel (Darusman Report): Upper-range estimate of up to 40,000 civilian deaths in the final phase; report acknowledged no authoritative or reliable final figure existed. - UN Country Team (2008–2009): Recorded 7,721 killed and 18,479 injured (noted as incomplete). - The Times (2009): Media extrapolation estimated ~20,000 deaths. - Department of Census & Statistics (2011 Household Enumeration): Recorded 8,998 total deaths (Jan–May 2009) in Northern Province, including 6,858 under "Other" (unattributed, may include combatants). • Post-Conflict & Rehabilitation Milestones: - Bureau of Rehabilitation: 12,196 former LTTE combatants successfully completed rehabilitation and reintegration. - Civilian Population: Approximately 290,000 individuals emerged alive from the final conflict zone. • Policy & Structural Recommendations: - Reconcile 2011 enumeration data with Office on Missing Persons, hospital, military, UN, and forensic records to create a verified, individual register of missing/dead. - Shift Geneva dialogue from statistical debate to human-centered truth-seeking. - Address international humanitarian law (IHL) gaps concerning asymmetric warfare involving non-State actors utilizing human shields. _Note: Data reflects official UN, DCS, and Bureau of Rehabilitation reports presented at the 63rd UNHRC Session._

Economy-wide / Cross-sector
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ITAK MP Shanakiyan Challenges Govt Over UNHRC Report Interpretation 📈

• Key Misrepresentation: ITAK MP Shanakiyan Rasamanickam stated in Parliament that media reports portraying the UN High Commissioner’s report as a government endorsement distorted the reality. The UN report actually expressed dissatisfaction over slow progress. • Accountability & Domestic Mechanisms: • Low confidence in purely domestic investigations among conflict-affected Tamil communities. • Questioned government position on international participation, independent prosecutors, and forensic support, specifically regarding the Chemmani-Siththupaththi mass grave (582 human remains). • Land Release & Anti-Terror Laws: • Disputed government claims that >250 acres were released, citing minimal ground progress. • Pressed for clarity on the Prevention of Terrorism Act (PTA) repeal and concerns that the proposed Protecting the State from Terrorism Bill may be more severe. • Governance & Corruption: • Expressed concern that the committee on Provincial Council elections is causing delays. • Welcomed anti-corruption efforts, including the arrests of Pillayan and Namal Rajapaksa, and accelerated investigations into the Easter Sunday attacks.

Economy-wide / Cross-sector
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🏛️ UNP Highlights Historical Economic Contributions and Reform Ahead of 80th Anniversary

• Historical Impact: UNP emphasizes its key role in Sri Lanka's economic backbone, citing foundational achievements such as the 1977 open economy, Free Trade Zones, fast-tracked Mahaweli projects, and the expansion of free education and agriculture. • Economic Recovery: • Reversed a negative growth recession inherited in 2001 to reach a 4% GDP growth rate within a year. • Recorded Sri Lanka’s first primary surpluses in 2017 and 2018. • Led the 2022 debt restructuring to exit bankruptcy, shifting the nation from six consecutive quarters of negative growth (2022-2023) to a 5% GDP growth rate by late 2024. • Party Restructuring: Following political shifts after the 2022 crisis, the party is re-evaluating its structure, integrating new faces, and plans to unveil a "modern UNP" by December focused on 21st-century economic needs and national unity.

Economy-wide / Cross-sector
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Awards & Recognitions

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Sampath Bank Named Sri Lanka’s Best Bank for Corporate Responsibility 🏆

Sampath Bank PLC was crowned Sri Lanka’s Best Bank for Corporate Responsibility at the Euromoney Awards for Excellence 2026 in Singapore. The recognition highlights the bank's commitment to community resilience, climate adaptation, and sustainable rural economic growth. • Key Initiative: The flagship 'Wewata Jeewayak' program drove major impact in 2025: • Investment: Rs. 63.7 million (~US$ 190,000) • Tank Projects: 11 new irrigation tank restorations • Reach: 14,780 beneficiaries and 3,370 acres of rejuvenated paddy land • Efficiency: Reduces agricultural water wastage by 20% to 30% • Economic & Social Impact: • Strengthens agriculture and national food security by preserving water for additional cultivation seasons • Broadens rural development via capacity building, financial literacy, agri-training, and women-led agri-entrepreneurship • Protects natural ecosystems via 'A Breath to the Ocean' (coral reefs, mangroves, ocean plastics, turtle conservation) and supports healthcare and education

Banking & Financial Services
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Oxford College of Business Secures 4 Key Accolades at Great Place to Work Awards 2026 📈

• Key Highlights & Regional Ranking: Oxford College of Business (OCB) has been named among the 50 Best Workplaces in Sri Lanka for the 13th consecutive year. It also ranked 49th Best Small & Medium-Sized Workplace in Asia, benchmarking its workplace practices regionally. • National & Sector Recognition: OCB secured the No. 1 Micro-Sized Best Workplace in Sri Lanka spot and earned Industry Excellence for Workplace Culture in the Professional Services Sector. • Strategic Focus: The institution attributes its sustained recognition to high-trust leadership, employee wellbeing, inclusion, digital enablement, and continuous professional development, linking internal workplace quality directly to service delivery in higher education and professional services.

Education & Training
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SDB bank Named Banking Sector Runner-Up at National Business Excellence Awards 🏆📈

• National Recognition: SDB bank was awarded Banking Sector Runner-Up at the National Business Excellence Awards, hosted by the National Chamber of Commerce of Sri Lanka. • Key Operational Drivers: The award recognizes the bank’s execution in sustainable growth, governance, digital accessibility, and value creation. • Socio-Economic Focus: Operations remain anchored in expanding financial inclusion, women's empowerment, and developing SMEs (small and medium-sized enterprises) to support broader participation in the formal economy. • Strategic Direction: SDB bank plans to deepen its ESG (Environmental, Social, and Governance) principles and customer-centric digital solutions to aid Sri Lanka's long-term economic development.

Banking & Financial Services
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🏆 Maliban Group Wins 7 Accolades at Dragons of Sri Lanka 2026

The Maliban Group secured seven awards—including two Gold Dragons—at the Dragons of Sri Lanka 2026 Awards, recognizing marketing effectiveness and creative excellence across its business categories. • Overall Tally: 2 Gold Dragons, 1 Silver Dragon, 2 Bronze Dragons, and 2 Black Dragons. • Gold Dragon Winners: • Brand Activation & Awareness: “Maliban Chocolate Biscuits. Kids Will Do Anything for This Taste” (Maliban Biscuit Manufactories). • Content Creation: “The Superhero That Replaced Child Advertising” (Maliban Dairy & Agri Products). • Other Awarded Campaigns: • “HumanTill. A Lived Experience of Giving” (Maliban Biscuit Manufactories): Silver in Event/Experiential; Bronze in Sustainability/Cause. • “The One Breath Challenge”: Bronze in Media; Black Dragon in Creative Excellence. • “Maliban Kiri Consumer Promo” (Maliban Milk Products): Black Dragon in Brand Trial/Sales Generation. • Context: The Dragons of Sri Lanka operates as an official extension of the Dragons of Asia, evaluating campaign performance across experiential marketing, sustainability, content creation, and sales execution.

Food, Beverage & Consumer Goods
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LB Finance Tops K Seeds 1Q 2026/27 Finance Sector Ranking 📈

• Overview: K Seeds Investments named LB Finance PLC as the top-performing non-bank financial institution under Category 1 (assets > Rs. 100 Bn) among 29 listed Sri Lankan finance companies for Q1 2026/27 (April–June 2026). • Industry Context: The non-bank financial institutions (NBFIs) sector faced external shocks, accelerating fuel & energy costs (+47% price revision), rupee depreciation (~8.7% to ~Rs. 334/US$), and a 100 bps policy rate hike to 8.75% by CBSL. Inflation hit a 3-year high of 6.8% in June. • Ranking Criteria: Evaluation was based on 10 equally weighted KPIs from quarterly CSE reports, including net profit margin, return on equity, return on assets, cost-to-income ratio, net interest margin, credit-to-deposits, operating leverage, loan book impairment, loan growth, and net profit growth. • Key Takeaway: Despite broader economic pressures, LB Finance's strong balance sheet and vehicle financing & lending franchise helped it maintain resilience and lead Category 1 peers.

Banking & Financial Services
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📈 Digibrush Ranks Among APAC’s Top 5 Independent Agencies in 2025 Effie Index

• Regional & Global Standing: Homegrown agency Digibrush Productions secured the No. 5 spot in Asia-Pacific and No. 24 globally among independent agency offices in the 2025 Effie Index, placing Sri Lanka alongside major regional advertising markets. • Index Benchmark: Evaluated against 5,700+ winners and finalists across 50+ competitions covering 130 markets, highlighting global standards in marketing effectiveness and data-driven performance. • Global Presence: The Colombo-based agency serves regional and international clients across the UK, Netherlands, UAE, Canada, and Singapore, executing work for multinationals like General Mills.

Telecommunications & Media
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📈 HNB Ranked Among Sri Lanka’s Top Brands for 2026

Hatton National Bank PLC (HNB) has secured its spot among Sri Lanka's most valuable brands in the 22nd Brand Finance Sri Lanka 100 Report. • Brand Valuation: HNB achieved a brand value of Rs. 25.4 billion. • Sector Dominance: The banking sector dominated the Top 10 with 6 banks, holding 42% of total ranking value at Rs. 275 billion (up 14% YoY). • Financial Growth: • Group PAT reached Rs. 49.8 billion in 2025 (more than doubled over 2 years). • Group assets grew 19.4% YoY to Rs. 2.64 trillion. • Loans expanded by 30.5% YoY to cross Rs. 1.5 trillion. • Key Drivers: Growth is backed by a widespread SME and rural outreach—including Gami Pubuduwa and HNB Sarusara (for commercial agri-business)—along with cross-border operations in India, East Africa, and the Middle East.

Banking & Financial Services
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SL Poultry Sector Recognized as Global Sustainability Leader at Soy Connext 2026 📈

Sri Lanka’s poultry & animal feed sector gained global recognition at the US Soybean Export Council’s (USSEC) Soy Connext 2026 summit in Chicago. Key highlights include: • Market Position: Sri Lanka remains the world's largest market for containerised US soybean meal, importing ~255,000 tons in 2025. This feeds a domestic animal feed industry producing nearly 1.3Mn MT annually, with poultry as its primary customer. • Sustainability Milestones: 16 Sri Lankan poultry producers and feed millers hold licenses for "Sustainable U.S. Soy" labels under the U.S. Soy Sustainability Assurance Protocol (SSAP). New Anthoney’s Farms was the first in South Asia to secure the license in 2023. • Institutional Growth: The Sri Lanka Association of Animal Nutrition (SLAAN) was established in Kandy in May 2026 to enhance domestic scientific capabilities. • Global Demand Outlook: Independent forecasts project global soy import demand to rise from 247Mn MT to 319Mn MT by 2034, driven by protein demand growth in regions like South Asia.

Agriculture, Plantations & Fisheries
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Amana Bank Named Sri Lanka's Best Bank for Second Year 🏆

• Key Accolades: Awarded Best Bank in Sri Lanka for the second consecutive year at the ICC Emerging Asia Banking Awards 2026. Also won the award for Best Performance on Risk Management. • Regional Scope: Organized by the Indian Chamber of Commerce (ICC) with PwC as process reviewers, evaluating institutions across BIMSTEC countries (Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand). • Operational Strengths: Success was attributed to its non-interest-based model, asset-backed structure, strong underwriting practices, and disciplined risk-sharing frameworks. • Strategic Leadership: Highlights the growing trust in alternative models within the broader banking & financial services sector, supporting national financial stability and inclusion.

Banking & Financial Services
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Vallibel Finance Ranks Among Sri Lanka’s Top 100 Most Valuable Brands 2026 📈

• Vallibel Finance has been recognized in the Brand Finance Sri Lanka Top 100 Most Valuable Brands 2026 ranking, securing a spot among the top 5 most valuable brands in the financial services sector. • Brand Performance & Growth: • Advanced 5 positions up in the 2026 national rankings compared to 2025. • Brand value expanded from Rs. 1.9 billion to Rs. 2.5 billion. • Awarded an A- brand strength rating, signaling strong customer trust and business performance within Sri Lanka's banking & financial services sector.

Banking & Financial Services
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📈 Ogilvy Group Sri Lanka Tops Tally at Dragons of Sri Lanka 2026

• Overall Performance: Ogilvy Group Sri Lanka secured 9 awards—one of the highest overall tallies—at the 3rd edition of the Dragons of Sri Lanka 2026. Organized by 4As Sri Lanka under the regional Dragons of Asia platform, the competition shortlisted over 50 agencies and corporates. • Tally Breakdown: 2 Gold Dragons 1 Silver Dragon 6 Black Dragons • Agency Highlights: Ogilvy Digital: Won 8 awards in total, including 1 Gold (Business & Trade Marketing), 1 Silver (Innovative Idea/Concept), and 6 Black Dragons across categories such as ICT/BPM, digital content creation, event/experiential, small budget, and sales generation. Phoenix Ogilvy: Claimed 1 Gold Dragon in the Product Launch/Re-Launch category for the multi-dimensional campaign rejuvenating the 30-year heritage brand, American Premium Water. • Industry Impact: Highlights the group's 290+ team across advertising & integrated communications, demonstrating how strategic creative execution drives measurable commercial results for local and global brands in Sri Lanka's marketing landscape.

Telecommunications & Media
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Hayleys Fentons Secures No. 2 Spot at Dragons of Sri Lanka Awards 2026 📈

• Overall Achievement: Hayleys Fentons Ltd. was ranked 2nd overall at the 26th Dragons of Sri Lanka Awards 2026. Notably, it stood out as one of only two corporate organizations competing against professional creative and advertising agencies. • Campaign Tally & Breakdown: • Gold Dragons (2): Awarded for "PR Corporate Branding" (Public Relations) and "Roots of Resilience" (Cause, Environment or Sustainability for mangrove restoration). • Silver Dragon (1): Hayleys Solar secured an award for its digital campaign "Anahitiya" (Social Media). • Bronze Dragon (1): Hayleys Mobility recognized for its Small Budget Campaign. • Black Dragons (2): Hayleys Mobility won two awards for its "Drive First, Fly Next" campaign (Content Creation and Social Media). • Strategic Impact: The awards showcase the ability of an engineering-led company to build strong brands and deliver effective marketing across technical sectors, including construction & engineering, renewable energy (solar and wind), IT/technology, and mobility solutions.

Manufacturing & Industrials
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Corporate News

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PPP Model Revives Hingurana Sugar Factory Into Regional Agri-Hub 📊

• Overview: A landmark Public-Private Partnership (PPP) formed in 2007 between the Government of Sri Lanka (51% stake) and private partners Browns & LOLC (49% stake) successfully turned around the dormant Hingurana Sugar Factory, transforming it into a thriving multi-product enterprise. • Operations & Expansion: The operation has expanded beyond sugar production into ethanol, power generation, and bio-fertiliser, now cultivating approximately 8,500 hectares of land using modern, computerized processing systems. • Socio-Economic Impact: • Provides direct employment to ~1,300 people and engages ~8,000 farmers in cultivation partnerships, benefiting over 30,000 individuals regionally. • Rebuilt critical rural infrastructure, including irrigation canals, drainage systems, and road networks. • Macro Context: Strengthening domestic sugar production reduces Sri Lanka's reliance on imports, helping conserve vital foreign exchange and easing pressure on the national balance of payments.

Agriculture, Plantations & Fisheries
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🏨 Sampath Bank Acquires Anilana Hotels Under Parate Execution

• Banking & Hospitality: Sampath Bank has acquired Anilana Hotels and Properties' assets in Nilaveli, Trincomalee, and Pasikuda under the Recovery of Loans by Banks Act No. 04 of 1990. • Legal Challenges: Anilana has filed two court cases challenging the bank’s parate execution resolution. • Restructuring Efforts: The company filed for a compromise under the Companies Act, citing a prospective investor offer of LKR 1.2 Bn for the hotel properties. • Current Status: Anilana stated it will disclose details if a compromise with Sampath Bank is reached in the Commercial High Court.

Tourism, Hospitality & Leisure
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🚗 Hayleys Mobility Delivers 1,000th Vehicle in First Nine Months

• Milestone Achieved: Hayleys Mobility Ltd. (mobility arm of Hayleys Fentons Ltd.) reached its 1,000-vehicle delivery mark within nine months of starting operations. • Vehicle Portfolio: Serves individual, family, and business segments using brands like OMODA, JAECOO, KAIYI, SRM, CF MOTO, and King Long across electric, hybrid, and petrol-powered passenger and commercial vehicles. • Ecosystem & Support: Delivers a complete mobility ecosystem incorporating charging infrastructure, manufacturer-backed warranties, genuine spare parts, and island-wide after-sales support. • Future Expansion: Planning entry into Sri Lanka's two-wheeler market to further broaden its consumer reach and local mobility ecosystem.

Retail & E-commerce
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📈 MullenLowe Group Sri Lanka Transitions to BBDO Sri Lanka

Following Omnicom's global acquisition of IPG completed in December 2025, MullenLowe Group Sri Lanka has officially transitioned to BBDO Sri Lanka as an Omnicom affiliate. • Corporate Restructuring: The strategic transition connects Sri Lanka’s established creative and advertising operation directly with BBDO’s global network. • Track Record & Scale: • Operations cover 100+ professionals, managing 111 brands across 33 categories for 43 major corporate clients. • Recognized as Effie Agency of the Year 8 times in the last decade and Campaign South Asia Agency of the Year 5 times. • Ranked among APAC’s Top 20 and Global Top 100 Most Effective Agency Offices on the Effie Index for two consecutive years. • Business Scope: The agency retains its local talent, leadership under Executive Chairman Thayalan Bartlett, and multidisciplinary services including strategy, public relations, media, activation, tech, and digital creative services.

Telecommunications & Media
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📈 Agarapatana Plantations Seeks Approval to Redirect Rs. 643 M Unutilised IPO Proceeds

Agarapatana Plantations PLC is seeking shareholder approval at an EGM to redeploy Rs. 643.2 M in unutilised IPO funds toward mechanisation and renewable energy to counter severe industry labour shortages and migration, while extending the timeline to 30 Sept 2028. • IPO Fund Utilization Status: - Total IPO Allocation: Rs. 747.6 M - Debt Settlement: Rs. 75 M (100% fully utilised) - Factory Modernisation: Only Rs. 29.4 M used out of Rs. 672.6 M allocated (leaving Rs. 643.2 M unutilised) • Revised Allocation Plan (Rs. 649.7 M total): - Driers & Heaters: Down to Rs. 297.7 M (from Rs. 399.6 M) - Rollers, Automation & Conveyorisation: Increased to Rs. 145 M (from Rs. 66 M) - Renewable Energy: New allocation of Rs. 88 M - Colour Sorters: Increased to Rs. 65 M (from Rs. 27 M) - Batch Weighers: Scaled down to Rs. 34 M (from Rs. 36 M) - Scrapped Items: De-stoners, energy saving fans, and variable speed drives (Rs. 88 M total) removed - Shortfall of Rs. 6.5 M to be funded via internal cash flows • Sector & Stock Impact: - Strategy focuses on boosting efficiency in orthodox leafy teas production amid labor migration in the plantation sector. - Shares closed down 60 cents at Rs. 14.10. Top owners remain Lankem Developments (57.65%) and Senthilverl Holdings (22.68%).

Agriculture, Plantations & Fisheries
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📈 Aitken Spence Hotel Holdings to Raise Rs 5 Bn via Listed Debentures

• Key Figures & Issuance: • Total Capital target: Up to Rs 5.00 Bn (Initial Rs 3.00 Bn + Rs 2.00 Bn oversubscription option). • Instrument details: 30 million listed, rated, unsecured, senior, redeemable debentures priced at Rs 100 each. • Subscription date: List opens on September 15, 2026. • Fixed-Rate Options: • Type A (5-Yr): 13.00% p.a. paid annually (13.00% AER) • Type B (5-Yr): 12.60% p.a. paid semi-annually (13.00% AER) • Type C (7-Yr): 13.15% p.a. paid annually (13.15% AER) • Type D (7-Yr): 12.74% p.a. paid semi-annually (13.15% AER) • Sector & Market Impact: • Strengthens the tourism & hospitality sector's access to long-term local debt financing. • In-principle CSE approval secured for listing. Shares closed at Rs 85.80 (-1.38%).

Tourism, Hospitality & Leisure
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FitsAir Temporarily Suspends Colombo–Dubai Route Amid Regional Developments ✈️

• Operational Status: Privately owned Sri Lankan carrier FitsAir has temporarily paused its scheduled flight services between Colombo and Dubai, effective September 6, 2026. • Key Drivers: The suspension is attributed to the evolving geopolitical situation and operational impacts across the Middle East. • Expected Resume Timeline: Operations are tentatively planned to resume by November 2026, though restarting remains subject to ongoing regional security and airspace conditions. • Sector Impact: Temporarily alters air connectivity for the local aviation & tourism sector and Middle East passage routes, impacting passenger travel between Sri Lanka and the UAE.

Transport, Logistics & Infrastructure
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📈 Nations Trust Bank to Raise Rs13.8 Bn via Rights Issue

• Capital Raising: Nations Trust Bank (NTB) plans to raise Rs 13.8 Bn through a rights issue to strengthen its banking operations. • Issue Details: Offering 3 ordinary non-voting convertible shares for every 22 existing ordinary voting and/or non-voting shares at Rs 305 per share. • Share Volume: A total of 45,467,286 ordinary voting shares will be issued under the private capital raise. • Strategic Purpose: Proceeds will boost the bank’s Common Equity Tier 1 (CET1) capital position to ensure adequate risk buffers and support long-term growth in the financial services sector. • Status: The issue remains subject to formal shareholder and Colombo Stock Exchange (CSE) approvals.

Banking & Financial Services
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🚀 Surge Acquires Majority Stake in IDEA8 to Launch Surge Robotics

• Strategic Expansion: Sri Lanka-based enterprise software firm Surge has acquired a majority stake in IoT and embedded systems firm IDEA8, launching Surge Robotics to advance industrial automation, intelligent hardware, and connected manufacturing. • Core Capabilities: Merges Surge’s AI and cloud infrastructure with IDEA8’s expertise in sensors, edge computing (STM32, Raspberry Pi, NVIDIA Jetson), and industrial IoT to digitize legacy physical machinery. • Key Sectors: Focuses initially on apparel & textiles, manufacturing, warehousing, and logistics, offering solutions like predictive maintenance, computer vision, asset tracking, and factory automation. • Footprint & Clients: Leverages IDEA8’s 40+ engineering team and existing deployments across Sri Lanka, India, Singapore, Thailand, Spain, and South Korea, including projects with Uniqlo, MAS, and Brandix. • Leadership: IDEA8 continues under founder Chanaka Prasad. Advisory board additions include MIT-educated tech expert Henry Wu and global capital markets veteran Sarath Sathkumara as an advisor and minority investor.

Technology & Digital Services
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Fitch Assigns Final 'BBB+(lka)' Rating to People’s Leasing’s Debentures 📈

• Issuance Overview: Fitch Ratings has assigned a final National Long-Term Rating of 'BBB+(lka)' to People’s Leasing & Finance PLC’s (PLC) proposed LKR 10 Bn rupee-denominated subordinated listed debentures. • Key Issue Details: Instrument: Five-year subordinated listed debentures to be traded on the Colombo Stock Exchange. Purpose: Proceeds will strengthen Tier 2 capital base and ensure capital adequacy compliance. Rating Basis: Set two notches below PLC's National Long-Term Rating of 'A(lka)/Stable' to reflect loss severity and recovery expectations. • Parental Support: PLC’s 'A(lka)' rating reflects anticipated support from parent entity People’s Bank (Sri Lanka), driven by majority ownership, strategic synergy, and shared branding.

Banking & Financial Services
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Asiri Central Hospital Reaches 100 Pediatric Heart Surgeries Benchmark Under Suraksha Scheme 📈

• Milestone Overview: Asiri Central Hospital successfully completed its 100th Atrial Septal Defect (ASD) surgery for schoolchildren. Procedures were fully funded via the Suraksha Insurance Scheme, Sri Lanka’s free national student health insurance program run by the Ministry of Education and Sri Lanka Insurance Corporation General Ltd. • Partnership Impact: Highlights effective public-private collaboration, eliminating financial barriers and shortening waitlists for specialized pediatric cardiac care across island-wide student populations. • Surgical & Medical Care: Operations were led by Dr. M. S. Mugunthan (Consultant Cardiothoracic Surgeon, LRH and Asiri Central Hospital) alongside Consultant Anaesthetists Dr. Asitha Dissanayake and Dr. Geetha Jayathilake, supported by specialized intensive care teams.

Healthcare & Pharmaceuticals
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SLID and EY to Host INED Forum on Boardroom Resilience 📊

• Event Overview: The Sri Lanka Institute of Directors (SLID) and EY are hosting an Independent Non-Executive Directors (INED) Forum titled "Resilient Boards Amidst Rising Risks" on September 10, 2026, at Cinnamon Grand Colombo. • Core Focus: Addressing critical threats like geopolitical tensions, supply-chain bottlenecks, and cyber risks. The forum will focus on embedding active risk oversight into strategy rather than treating compliance as a mere annual exercise. • Key Speaker: Features Guest Speaker Sanjeev Gupta (EY-Parthenon ASEAN Energy Leader), who brings insights from over 1,000 global engagements valued at over US$ 400 Bn. • Industry Impact: Distinguished panelists represent top national economic drivers, including Sri Lanka's apparel & textiles sector, offering insights to reinforce corporate governance and national risk resilience.

Professional & Business Services
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Global & International Business

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🚢 Sri Lanka & Germany Convene High-Level Economic & Logistics Dialogue

• Bilateral Briefing: Ministry of Foreign Affairs and AHK Sri Lanka hosted a sector-focused session to strengthen ties in maritime & logistics and imports/exports. • Key Stakeholders: Included EDB, Sri Lanka Ports Authority (SLPA), Foreign Ministry officials, and German sector committee delegates. • Hub Strategy: Focused on positioning Sri Lanka as a competitive maritime and export hub via global supply chain integration. • Investment & Projects: SLPA highlighted upcoming port infrastructure projects and investment opportunities for German investors. • Export Collaboration: EDB presented national export strategies to boost apparel & textiles, tea, and tech partnerships.

Transport, Logistics & Infrastructure
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Sri Lanka & ICAO Bilateral Talks Focus on Capacity & Mattala Airport Strategy ✈️

• High-Level Engagement: Director General of Civil Aviation Capt. Daminda Rambukwella held bilateral discussions with ICAO's Capacity Development and Implementation (CDI) Bureau during DGCA/61 in Kuala Lumpur, Malaysia. • Core Priorities: Discussions centered on strengthening civil aviation capabilities through technical assistance, capacity development, and effective implementation of ICAO Standards and Recommended Practices (SARPs). • Key Infrastructure Focus: Conversations highlighted national aviation priorities, specifically targeted technical support for the strategic development plan of Mattala Rajapaksa International Airport.

Transport, Logistics & Infrastructure
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🤝 China’s Xi & India’s Modi Hold Landmark Meeting at 18th BRICS Summit

• Strategic Consensus: Chinese President Xi Jinping and Indian Prime Minister Narendra Modi met at the 18th BRICS Summit in New Delhi, agreeing that the two nations must act as strategic partners rather than rivals, framing each other's growth as a mutual opportunity. • Economic & Trade ties: Highlighted that bilateral trade has reached a new record high. President Xi emphasized addressing economic concerns in a balanced manner to promote steady development across trade and investment, direct flights, and people-to-people exchanges. • Key Directives for Bilateral Growth: • Objective perception: Prioritize common development interests over threats. • Win-win cooperation: Focus on economic synergies, regional infrastructure, and trade flows. • Managing border issues: Maintain peace in border regions while advancing economic ties. • Multilateral coordination: Strengthen joint participation in BRICS, UN, SCO, and G20 to drive Global South stability and global economic multipolarity. • Global South Impact: Reflecting interests for over 2.8 billion people, the commitment to deeper economic and diplomatic stabilization between Asia’s two largest economies provides key trade and stability implications for neighboring South Asian markets, including Sri Lanka.

Economy-wide / Cross-sector
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🤝 Sri Lanka & Palestine Reaffirm Ties to Boost Trade & Vocational Skills 📈

• Diplomatic & Development Ties: Sri Lanka and Palestine have pledged to deepen bilateral, economic, and humanitarian cooperation. Key focus areas include youth empowerment through reinitiating the Sri Lanka Vocational Training Institute Project in Ramallah alongside ongoing support for UNRWA and aid for the Gaza Strip. • Trade & Market Access: Economic discussions highlighted participation in the upcoming Sri Lanka Expo 2027 to build business-to-business linkages via PalTrade and Palestinian Chambers of Commerce, driving expansion in tourism and bilateral market access.

Economy-wide / Cross-sector
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Sri Lanka Invites Foreign Investors at 11th Belt & Road Summit 📈

• Event Overview: Speaking at the 11th Belt and Road Summit in Hong Kong, Trade Minister Wasantha Samarasinghe invited global businesses to invest in Sri Lanka, emphasizing export-led growth, technology transfer, and supply chain resilience. The summit gathered over 6,000 leaders from 70 countries. • Key Target Sectors: Strategic focus areas for foreign participation include renewable energy, logistics, tourism, information technology, advanced manufacturing, agri-tech, and food processing. • National Strategy: Economic priorities center on enhancing investor confidence, improving the ease of doing business, strengthening productivity, and facilitating long-term value creation through skills development and global integration. • Regional Trade Dynamics: Hong Kong reported its merchandise trade with BRI countries rose nearly 17% YoY to approximately US$ 323 Bn last year, highlighting strong regional momentum.

Economy-wide / Cross-sector
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🤝 Sri Lanka–Canada Business Council Holds AGM to Drive Trade & Investment Links

• Bilateral Overview: Canadian High Commissioner Isabelle Martin emphasized the importance of continued business engagement and cooperation between Sri Lanka and Canada to tap into potential trade and investment opportunities amid an evolving global economic landscape. • Leadership Appointments: Mohamad Hameez (Spillburg Holdings) re-elected as President for the 2026/2027 term. M Irshad Razack (Global Academy of Further Education) re-elected as Senior VP, Pemith Paaris (Acentura Inc) appointed VP, and Hiran De Silva (AIBS) re-elected Treasurer. • Executive Committee & Social Focus: Committee includes key corporate stakeholders (Aitken Spence Travels, BOV Capital, Hatton National Bank, Maliban Biscuit Manufactories). Kala Amirthalingam appointed Goodwill Ambassador for Women & Child Development and Empowerment.

Economy-wide / Cross-sector
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🇱🇰🇯🇵 Japan Ambassador Outlines Priorities to Strengthen Sri Lanka Economic Ties at 47th SLJBC AGM

• Strategic Focus Areas: Ambassador Akio Isomata highlighted three core priorities for bilateral growth: an effective trade and investment policy, domestic industrial policy promotion, and increased investment in renewable energy. • Policy & Trade Alignment: Encouraged Sri Lanka to adopt an export-oriented model targeting Southeast Asia and Japan. Noted that the National Export Development Plan 2026 and National Mineral Policy 2026 align with connecting Sri Lanka's export manufacturing base with India's market. • Sri Lanka–Japan Economic Corridor: SLJBC President Athulla R F Edirisinghe urged local businesses and government to capitalize on the 2025 Economic Corridor initiative proposed by Japan's Ministry of Economy, Trade, and Industry to avoid missing future foreign direct investment opportunities. • Council Leadership (2026/27): - President: Athulla R F Edirisinghe (Hirohama Ceylon) - Senior VP: Ruwan Waidyaratne (Hayleys Advantis) - Vice President: Shamil Mendis (Spear International) - Treasurer: Rohitha Mendis (Prudential Shipping Lines) • Key Sectors Represented: Executive committee includes key players across apparel & textiles (Brandix), tea (Heritage Teas, HVA Foods), logistics, and renewable energy (Vidullanka).

Economy-wide / Cross-sector
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🏛️ Australia & Sri Lanka Sign Electoral Integrity MoU

Australia and Sri Lanka have formally strengthened governance ties through a Memorandum of Understanding (MoU) signed between the Australian Electoral Commission and the Election Commission of Sri Lanka in Colombo on 2 September 2026. Key Highlights: • Partnership Focus: Deepens practical cooperation, capacity building, and expertise exchange in election management, institutional frameworks, and administration. • Strategic Context: Enhances democratic governance and public institutional capacity between the two Indian Ocean neighbors as they approach 80 years of bilateral relations. • Key Representation: Signed in the presence of Australian High Commissioner Matthew Duckworth, AEC Acting Assistant Commissioner Melinda Vernon, and Sri Lanka Election Commission Chairman R.M.A.L. Ratnayake.

Economy-wide / Cross-sector
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US Officials to Visit Sri Lanka to Advance Maritime Trade 📈

• Key Delegation Visit: US Federal Maritime Commission (FMC) Chairman Laura DiBella and FMC Commissioner Robert J. Harvey will visit Sri Lanka from September 6–10 to strengthen bilateral maritime trade, investment, and Indo-Pacific shipping networks. • Strategic Port Impact: Over 80% of containers moving through the Port of Colombo are transshipments bound for global destinations, reflecting Sri Lanka's pivotal role in Indian Ocean trade. • High-Level Engagement: The delegation will meet top government and maritime industry leaders. DiBella will deliver key remarks at the Colombo International Maritime and Logistics Conference, while Harvey will participate on an expert panel. • Economic Synergy: Enhanced cooperation aims to secure trade routes, open avenues for American businesses, reinforce Sri Lanka's standing as a regional hub, and boost mutual economic prosperity.

Transport, Logistics & Infrastructure
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SLBBC 31st AGM: Focus on EU Trade Pathways & GSP+ Extension 📈

• EU Trade Access & Policy Updates Sri Lanka's EU GSP+ access remains secured until 2029, featuring a 2-year window to reapply under the revised regime. Potential long-term trajectory targets transitioning from GSP+ toward a comprehensive Free Trade Agreement (FTA) with the EU. Regulatory concerns noted regarding bureaucratic delays in quality clearances and restrictive foreign investment caps. • Key Growth Sectors & Regional Focus Renewable energy: Targeting 70% renewable electricity generation by 2030. Agriculture & agro-processing: Focus on GI-certifiable crops such as cocoa, vanilla, and spices to prevent missed export opportunities in the EU. Floriculture: Positioning Sri Lanka as the South Asian hub for tropical ornamental plants and cut foliage via Netherlands trade gateways. Other focal industries: Eco-tourism, coconut, and healthcare. • SLBBC Leadership (2026/2027) Re-elected President: Mr. Farhath Amith (Fanam International). Senior Vice President: Mr. Shaameel Mohideen (Spillburg Holdings). Vice President: Mr. P. M. Abeysekara (Vinu International Trading Company). Committee representation includes travel, logistics, healthcare, and technology sectors.

Economy-wide / Cross-sector
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Foreign Minister Vijitha Herath Begins Official UAE Visit 📈

• Key Highlights: Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath is undertaking an official visit to the United Arab Emirates from 02–03 September 2026 to strengthen bilateral cooperation. • High-Level Meetings: Scheduled to meet key UAE Ministers to discuss matters of mutual interest: - Dr. Abdulrahman Abdulmannan Al Awar (Human Resources & Emiratisation) - Abdulla bin Touq Al Marri (Economy & Tourism) • Promotional Engagement: - Minister Herath will join Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, on 02 September to grace the second edition of the “Sri Lanka Beyond Your Dreams” promotional event in Dubai.

Economy-wide / Cross-sector
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📈 Sri Lanka–Hong Kong Strategic Bilateral Trade and Investment Links Strengthened

• Event Overview: The Export Development Board (EDB) and National Chamber of Commerce (NCCSL) partnered with HKETO, InvestHK, and HKTDC to host the "Bridging Markets" seminar and networking dinner in Colombo, gathering over 100 Sri Lankan exporters. • Sector Representation: Sri Lanka's export ecosystem was represented by diverse high-potential industries, including apparel, tea, ICT and software, boat building, gems, food, and handicrafts. • Strategic Focus: Discussions centered on positioning Hong Kong as a gateway for Sri Lankan exports to access Mainland China and wider Asian markets, while promoting internationalization, investment facilitation, trade fairs, and SME support.

Economy-wide / Cross-sector
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Financial & Investment News

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📈 Sri Lanka to Feature Among Top Weights in JPMorgan’s New Frontier Debt Index

JPMorgan will launch its "GBI-EM Edge" local-currency government bond index by end-September 2026, featuring Sri Lanka as one of its top-weighted nations following a strong post-crisis market rally. • Key Highlights & Market Impact: • Sri Lanka & Top Peers: Sri Lanka joins major frontier economies like Egypt, Vietnam, Morocco, Kazakhstan, Bangladesh, Pakistan, and Nigeria with top weightings in the new benchmark. • Market Size: Tracks nearly US$ 330 Bn in local-currency government debt across 26 countries out of a total US$ 1 Tn tradable local-currency EM debt market. • Yield & Returns: Offers average nominal yields of ~10.4% (~440 bps above JPMorgan's standard EM local currency index). Back-testing reveals returns 1.2 percentage points higher than the mainstream EM index since late 2017. • Index Structure & Allocation: • Regional Breakdown: African nations comprise ~45%, while Frontier Asia (including Sri Lanka, Vietnam, Pakistan, Bangladesh, and Kazakhstan) accounts for nearly one-third. • Inclusion Criteria: Requires bonds with a minimum size equivalent to US$ 250 Mn and at least 2.5 years to maturity. Individual country weightings are capped at 8%. • Economic Context: • Expansion into local-currency debt benchmarks supports Sri Lanka's economic resilience by helping reduce currency-mismatch debt risks typical of hard-currency liabilities.

Capital Markets & Investment
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📈 DFCC Bank’s Rs. 12.5 Bn Debenture Issue Oversubscribed

DFCC Bank PLC has officially closed its Basel III-compliant Tier 2 debenture issue after receiving applications exceeding the maximum target limit. • Issue Overview: Floating of up to 125 million listed, rated, unsecured, subordinated, redeemable 5-year debentures (2026/2031) at a par value of Rs. 100 each. • Capital Raised: Maximum target of Rs. 12.5 Bn successfully met due to oversubscription. • Returns & Tenure: Fixed annual interest rate of 13%, payable annually, over a 5-year tenure (2026–2031). • Next Steps: All applications received prior to Friday's 4:30 p.m. closure were accepted. The basis of allotment will be communicated to the Colombo Stock Exchange (CSE) in due course.

Banking & Financial Services
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📈 Adani Airports to Raise US$ 1 Bn Equity Fund

• Key Transaction Terms: Adani Airport Holdings Ltd. (AAHL) entered binding agreements to raise INR 98.25 Bn (~US$ 1 Bn) primary equity capital. Pre-money equity valuation stands at ~US$ 18 Bn. • Investor Consortium: Investment sourced from Alpha Wave Global, Premji Invest, Temasek, and BlackRock-managed funds, acquiring a collective ~5.54% stake via 3 tranches (closing July 2027). • Capital Utilization: Proceeds allocated to airport expansion to lift capacity to ~200 Mn annual passengers, developing 22 Mn sq. ft. of Adani Airport City mixed-use real estate, and scaling ground handling and non-aeronautical businesses. • Context & Market Position: Follows AEL's INR 150 Bn QIP in July 2026. AAHL currently operates 8 Indian airports, handling >23% of national passenger traffic. Boosts broader aviation connectivity, driving multiplier effects across tourism, trade, and regional employment.

Transport, Logistics & Infrastructure
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📈 AIIB Urges Central Banks to Build Larger Buffers & Sharpen Judgement

Speaking at the Central Bank of Sri Lanka Reserve Management Conference 2026 in Colombo, Asian Infrastructure Investment Bank (AIIB) Treasurer Domenico Nardelli called for central banks to hold larger liquidity buffers to navigate faster, more frequent financial shocks. • Key Market Signals & Volatility • Fixed income experienced real stress: US 5-year Treasury yield sold off ~1% in 6 months; 30-year yield swung significantly in 2 days. • Gold dropped ~30% in 1H 2026 before rallying toward US$ 5,000/oz; AIIB avoids gold due to extreme volatility. • MDB bonds (mostly in US dollars) present a stable alternative for credit diversification. • Global Reserve Trends • The US Dollar maintained a dominant 57% share of the ~US$ 13 Tn global reserves in Q1 2026. • No immediate flight from the US Dollar, though geopolitical and climate risks drive push for jurisdictional diversification. • Technology & AI Adaptation • Tokenisation and blockchain to accelerate global diversification by lowering cross-border costs. • AIIB deployed in-house AI tools trained on treasury data, cutting portfolio analysis time from hours to seconds for its US$ 30 Bn portfolio. • Strategic Takeaways • Liquidity buffers should be treated as essential insurance rather than a drag on returns. • Central banks must prioritize preserving market confidence and protecting capital over market forecasting.

Banking & Financial Services
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📈 NCGIL Hits 2,000-Guarantee Milestone as Commercial Bank Leads MSME Credit Scheme

• Overall Figures: The National Credit Guarantee Institution Limited (NCGIL) issued its 2,000th guarantee under the National Credit Guarantee Scheme. • Market Leadership: Commercial Bank of Ceylon has secured the dominant position under the framework, accounting for approximately 600 guarantees—nearly one-third of all facilities extended. • Disbursement Total: Commercial Bank disbursed loans totaling Rs. 2.97 Bn, the highest total loan amount among all 13 participating Shareholder Financial Institutions (SFIs). • Target Sectors: The initiative focuses on cash flow-based lending without traditional collateral to strengthen MSMEs, agriculture, and emerging sectors. • Women Inclusion: Funding extends to women-led businesses through NCGIL’s dedicated Liya Shakthi scheme, alongside Commercial Bank's Diribala facility to support national employment and enterprise growth.

Banking & Financial Services
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📈 Asia Asset Finance Rs. 1.5 Bn Rights Issue Oversubscribed

• Issue Breakdown: Offered 45.16M ordinary voting shares at Rs. 33.30 per share to raise Rs. 1.5 Bn. Total applications reached 58.179M shares (44.582M provisional + 13.597M additional), resulting in an oversubscription of Rs. 433.5 Mn. • Financial Performance (Q1 ended 30 June 2026): - Profit Before Tax (PBT): Rs. 877.9 Mn (up 197.8% YoY) - Profit After Tax (PAT): Rs. 429.4 Mn (up 137.0% YoY) - Total Assets: Rs. 60.42 Bn (up 12.3%) - Loan Portfolio: Expanded by Rs. 3.51 Bn to Rs. 50.51 Bn • Market & Shareholder Data: - Share price closed at Rs. 47.90 (down 10 cents). - Net Assets Per Share: Rs. 41.89 (as of 30 June 2026). - Parent company Muthoot Finance Ltd. holds a 73% stake, with a public float of 26.55% held by 3,188 shareholders.

Banking & Financial Services
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📈 Union Bank Plans Rs. 708.4 M Rights Issue to Strengthen Capital

Union Bank of Colombo PLC has proposed a Rs. 708.4 million Rights Issue aimed at reinforcing its Tier 1 capital adequacy ratio and expanding its core lending operations. • Issue Details & Structure: The Board resolved on 31 August 2026 to offer up to 67,722,396 new ordinary voting shares at Rs. 10.46 per share. The issue will be structured on the basis of 1 new share for every 16 existing ordinary voting shares. • Financial Position: As of 30 June 2026, the bank's stated capital stood at Rs. 16.33 Bn, with reported net assets of Rs. 19 per share. • Major Shareholding Breakdown: • Culture Financial Holdings Ltd.: 70.84% • Vista Knowledge Ltd.: 5.97% • Associated Electrical Corporations Ltd.: 2.63% • Regulatory & Shareholder Approvals: The proposed Rights Issue is subject to obtaining in-principle approval from the Colombo Stock Exchange for listing, as well as final approval from shareholders at an upcoming Extraordinary General Meeting (EGM).

Banking & Financial Services
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Govt Targets Fresh US$ 4.1 Bn Investment into Port City Colombo 📈

• Overall Investment Target: The Government is aiming for an additional US$ 4.1 Bn in investments over the next 5 years, adding to US$ 2.1 Bn already confirmed. • Key Industry Investors: Key players operating in the Special Economic Zone (SEZ) include: • ICT/BPM: IGT1 for BPO/BPM services. • Apparel & Textiles / Global Operations: Ansell. • Global Shared Services: Horizon Group USA. • Offshore Professional Services: KPMG. • Logistics Back-Office: GAC Services. • Infrastructure Developments: Projects underway include 2 residential developments, 3 mixed-development projects, a hotel, and a convention centre. • Revised Tax Framework: • Primary Businesses: Income tax holidays up to 15 years. • Secondary Businesses: Concessionary corporate income tax rate of 7.5% for 4 years. • Competitive Edge: Beyond incentives, investments are driven by high-speed internet, strategic location, international market access, and a lower cost of living compared to Dubai or Singapore. • National Impact: Investments into Port City are supplementary to foreign direct investment coming via the Board of Investment (BOI).

Construction & Real Estate
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🇱🇰 Invest Sri Lanka Investor Forum Sydney Draws Foreign & Diaspora Capital 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) hosted the "Invest Sri Lanka" Investor Forum on 17 August 2026 in Sydney to showcase the island's economic recovery and pitch capital market growth to foreign fund managers and the Sri Lankan diaspora. • Key Highlights & Credit Outlook: - Credit Ratings: Central Bank Governor Dr. Nandalal Weerasinghe noted all three major international agencies rate Sri Lanka at CCC, with a clear pathway toward an upgrade to B- as macroeconomic confidence improves. - Regional Advantage: Sri Lanka is positioning itself as an "India Plus One" platform for logistics, services, and manufacturing. - Foreign Investment Account (IIA): HNB confirmed Inward Investment Accounts (IIA) for overseas investors now process within 2 to 3 working days via streamlined documentation. - Port City Colombo: Allows investment in foreign currencies (e.g., AUD) with relaxed capital account regulations for cross-border capital flow. • Structural Reforms & Investment Avenues: - Focus on SOE restructuring, fiscal discipline, institutional reforms, and digital transformation. - Key opportunities emphasized in brownfield projects, venture capital, and broader capital market participation across South Asia. - Part of an ongoing Australian roadshow series running from 17–20 August 2026.

Capital Markets & Investment
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📈 MBSL Bolsters Capital Base via Rs. 806 Mn Rights Issue

• Capital Raising: Merchant Bank of Sri Lanka & Finance PLC (MBSL) successfully completed its Rights Issue in August 2026, raising Rs. 806 million in fresh capital. • Strategic Focus: • Strengthens the overall capital base and boosts capacity for core business growth. • Supports prudent capital management, financial resilience, and long-term shareholder value creation.

Banking & Financial Services
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Uncategorized

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🏥 Exhibition Highlights 40-Year Evolution of Sri Lanka’s Surgical Sector

• Overview: Dr. Gamini Goonetilleke is hosting "Beyond the Scalpel," a unique historical and educational exhibition showcasing the evolution of trauma surgery, clinical practice, and public service over four decades. • Core Exhibits: Features over 500 historical documents, photographs, medical illustrations, and clinical materials documenting developments in rural hospitals, war-affected zones, and national healthcare. • Sector Value: Serves as a key educational resource for medical professionals and students, highlighting resilience, professional leadership, and institutional development within the healthcare & medical education sector. • Event Details: - Dates: 25 – 27 September 2026 - Time: 9:00 AM – 8:00 PM - Venue: Auditorium, The College of Surgeons of Sri Lanka, Colombo 07 - Admission: Free to the public

Healthcare & Pharmaceuticals
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🎭 SOSCV SL Host ‘Rhythm of Unity’ Cultural Evening 2026

SOS Children’s Villages Sri Lanka (SOSCV SL) will present ‘Rhythm of Unity’, a cultural event highlighting youth creativity, teamwork, and personal growth across its network. • Event Details: Scheduled for 19 September 2026 at Bishop’s College Auditorium, Colombo, starting at 7.00 PM. • Program Scope: Rehearsals and active youth participation span 8 key locations, including Piliyandala, Nuwara Eliya, Galle, Anuradhapura, Monaragala, Jaffna, Gandara, and Pereliya. • Core Objective: Focuses on self-expression, confidence-building, and fostering a sense of belonging to nurture responsible future citizens. • Social Impact: Serves as a platform to celebrate youth potential and support holistic development beyond basic care. [Sri Lanka SOS Children's Villages](https://www.youtube.com/watch?v=Auurd1wEDbE) This video highlights the social programs and youth development efforts of SOS Children's Villages Sri Lanka.

Other
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💼 The Management Club (TMC) Drives Leadership Standards in Sri Lanka

• Overview: Established in 2001 under the Chartered Management Institute – UK (Sri Lanka Branch), TMC is a professional forum dedicated to advancing management practices to meet international standards through continuous networking and development programs. • Key Hotel Partners: • TMC Colombo: Cinnamon Grand Colombo • TMC Mount Lavinia: Mount Lavinia Hotel • TMC Moratuwa: Ranmal Ramadia • TMC Negombo: Camelot Beach Hotel • TMC Jaffna: J Hotel Jaffna • Corporate & Media Partners: • Strategic Partners: HNB, Sri Lanka Insurance Corporation • Media Partner: Daily Financial Times • Knowledge Partner: KPMG • Service Partners & Providers: Nine Hearts, Sharp Graphics, KFC, Softlogic, Mobitel • Membership Inquiries: • Tel: 071 5860000 • Email: [email protected]

Professional & Business Services
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Crown & Commonwealth: Sri Lankan Artist Presents Sun-Printed Artwork to King Charles III 🎨

• Sri Lankan textile designer Ruwanthi Gajadeera presented an original artwork titled Eka Mawakage Daruwo (Children of One Mother) to His Majesty King Charles III in London. • The presentation took place at the Victoria League for Commonwealth Friendship during its 125th anniversary, attended by Sri Lanka's High Commissioner to the UK, H.E. Nimal Senadheera. • The artwork features hand-drawn national flowers of all 56 Commonwealth nations printed via cyanotype—a chemical process exposed solely by sunlight without toxic waste, aligning with sustainable design practices. • Gajadeera, an MA graduate from the Royal College of Art, is developing her studio via InnovationRCA and facilitates art-science research with Humboldt-Universität zu Berlin. • The event highlights international exposure for Sri Lanka's creative and sustainable fashion & textile talents on a global platform.

Other
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🚨 Nepal-Tibet Border Floods: Death Toll Rises Over 700

• Casualty & Rescue Figures • Confirmed Deaths: 734 in Nepal (up from 675) and 16 in Tibet. • Missing Persons: 2,498 reported missing in Nepal; 546 missing in Tibet. • Rescues Executed: 8,186 individuals safely rescued by nearly 20,000 security personnel. • Impact on Foreign Travelers & Tourism • Foreign Nationals Rescued: 261 foreign tourists rescued in Nepal. • Unaccounted Tourists: 320 tourists missing in Nepal; 261 missing in Tibet across 23 countries (including 15 UK citizens). • Disaster Overview • Devastating flash floods and mudslides severely impacted the Nepal-Tibet border region. • Data based on official updates from Nepal Police, Disaster Management Authority, Nepal Tourism Board, and CCTV.

Other
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Verdict on 2019 Easter Sunday Attacks Case Fixed for 22 Sept ⚖️

• Key Highlights: The Colombo Permanent Trial-at-Bar will deliver its verdict on 22 September 2026 regarding the 2019 Easter Sunday terror attack case involving 25 accused individuals, including Naufer Moulavi. • Legal Scope: The Attorney General has filed 23,270 charges against the accused under the Prevention of Terrorism Act (PTA), covering conspiracy, aiding and abetting, weapons collection, and attempted murder. • Background & Context: The case stems from the coordinated 21 April 2019 suicide bombings on churches and luxury hotels, which resulted in over 270 deaths and injured hundreds—severely impacting Sri Lanka’s national security and tourism sector.

Other
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🕯️ In Memory: Anthropological Assessment of Prof. Wimal Dissanayake’s Cinema Legacy

An anthropological critique evaluates the extensive legacy of the late communications scholar Prof. Wimal Dissanayake (1939–2026), focusing on his post-colonial cultural framework Enabling Traditions (2005) and its application to Sri Lankan and South Asian visual media. • Academic Impact: Highlighted heritage as a dynamic tool for indigenous identity and intellectual autonomy rather than a regressive obstacle. Challenged Eurocentric hegemony in film analysis by applying classical Eastern concepts like Rasa (aesthetic flavor) and Dhvani (suggestion) to evaluate directors such as Lester James Peries and Satyajit Ray. Positioned South Asian cinema as a vehicle for communities to process rapid capitalistic modernization. • Key Analytical Limitations: Textual Essentialism: Relied heavily on high classical texts, elite canonical histories, and Sanskritized models, which risks overlooking internal power hierarchies, caste fractures, and subaltern realities. Marginalized Perspectives: Failed to fully capture how lower-caste and subaltern groups often use creative media to dismantle traditional structures rather than find aesthetic harmony within them. Material & Industrial Gaps: Downplayed structural realities such as corporate financing, state censorship, and market distribution networks that govern cultural production. Post-Colonial Paradox: Relied on Western critical theorists (e.g., Walter Benjamin) to validate indigenous frameworks, raising questions about whether the approach truly achieves local intellectual autonomy. • Overall Assessment: While foundational in rescuing Asian cinema from Eurocentric views, scholars note Dissanayake's text-centric models must be balanced with field-based ethnographic research to reflect the material realities of everyday folk life.

Telecommunications & Media
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🕯️ Parliament Pays Tribute to Music Icon Dr. Nanda Malini

• National Loss: Sri Lankan Parliament observed a minute's silence to honor veteran music icon Dr. Nanda Malini, who passed away at the age of 82. • Government & Opposition Tribute: Prime Minister Dr. Harini Amarasuriya and Opposition Leader Sajith Premadasa praised her nearly seven-decade career, recognizing her immense contributions to Sri Lankan music, culture, social justice, and democracy. • Career Highlights: Debuted in cinema music via 'Ran Muthu Doova' under Dr. W.D. Amaradeva; widely celebrated for her impactful social discourse through works such as 'Pavana' and 'Sathyaye Geethaya'. • Final Rites: Public respects at her residence in Nawala; cremation scheduled for 5:00 p.m. tomorrow at the Borella Cemetery without a formal funeral ceremony, honoring her final wishes.

Telecommunications & Media
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Sri Lanka Declares 3-Day National Mourning Following Passing of Veteran Musician Nanda Malini

• National Observance: The Government of Sri Lanka has officially declared a three-day national mourning period from 21 to 23 August following the passing of renowned singer Visharada Nanda Malini. • Public Homage: Remains will lie at her residence on Wijayaba Mawatha, Nawala, starting today from 10:00 a.m. for the public to pay their final respects. • Funeral Details: Religious ceremonies are scheduled for 3:30 p.m. tomorrow (22 August), with final rites taking place at 5:00 p.m. at the Borella General Cemetery. • Final Wishes: In adherence to her final wishes, the family confirmed that the cremation will proceed without an official state funeral ceremony.

Telecommunications & Media
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6th JXG-MHA 9-A-Side Hockey Tournament Set for 22 Aug 👍

• Overview: The 6th edition of the JXG-MHA 9-A-Side Hockey Tournament, sponsored by Janashakthi Group and organized by the Mercantile Hockey Association (MHA), will take place on 22 August at Astro Turf, Colombo 7. • Participation: The event brings together 16 corporate teams across three divisions to drive sports engagement in the corporate sector, featuring national-level players and emerging talent. • Divisions & Key Teams: • Division A: Defending champion Hatton National Bank (HNB), Seylan Bank, Sampath Bank A, Commercial Bank, Hayleys, and apparel & textiles giant MAS Holdings. • Division B: CIAP, Nations Trust Bank, and Browns & Company. • Division C: David Pieris Motor Company, John Keells Holdings, Singer (Sri Lanka), Future Life Holdings, Hemas Holdings, InQube Global, and Sampath Bank B. • Previous Edition Results: In the 5th edition, HNB won the Division A title against Sampath Bank, Browns & Company claimed Division B over Hayleys, and Nations Trust Bank took Division C against David Pieris Motor Company. • Event Details: Matches begin at 8:30 a.m. with live coverage on the MHA Facebook page and Sri Lankan Sports TV YouTube channel.

Tourism, Hospitality & Leisure
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Real Estate

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Prime Group Reaches Construction Milestone at The Colombo Border 🏗️

• Project Milestone: Prime Lands Residencies PLC completed the superstructures of all three towers—Brielle, Cosmos, and Amaa—at its flagship real estate & residential construction development, The Colombo Border, ahead of schedule. • Development Scale: Situated on ~6.5 acres in Peliyagoda, the project features ~5 acres dedicated to landscaped gardens, open green spaces, and recreational amenities, offering two-, three-, and four-bedroom penthouse residences. • Execution & Timeline: The phase was executed via parallel work by Prime Construction Ltd. (two towers) and Sanken Lanka Ltd. (one tower). Handover of units is scheduled to begin in mid-2027. • Market & Investment Demand: Reflecting strong buyer confidence in Sri Lanka's urban condominium & property market, Tower Cosmos is completely sold out. Remaining two and three-bedroom units are available starting from Rs. 48 million upwards.

Construction & Real Estate
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‘Rich Dad Poor Dad’ Author Robert Kiyosaki Reveals $1.2 Bn Debt Strategy 📈

• Key Financial Details: Best-selling author Robert Kiyosaki disclosed a massive $1.2 Bn in debt, frame-worked not as a failure but as a strategic wealth-building approach using leveraged real estate assets. • Individual Exposure: The total debt is shared across business partnerships owning ~1,500 apartment units. Kiyosaki’s personal liabilities are estimated between $30 million and $60 million, supported by an estimated annual income of $3 million. • Investment Strategy: The tactic relies on acquiring tax-free loans against property equity while isolating assets within individual Limited Liability Companies (LLCs) to establish protective corporate firewalls. _Note: While relevant to global real estate and leverage strategies, this news contains no direct economic data regarding Sri Lankan domestic markets, tea, apparel & textiles, or local ICT/BPM sectors._

Construction & Real Estate
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Home Lands Speeds Ahead: 60% Piling Done at Port City 📈

• Construction Progress: Real estate giant Home Lands completed 60% of piling works for its Central Park Boulevard Port City Colombo development, running 10% ahead of schedule within three months of launch. • Scale & Operations: A total of 192 piles are being constructed using 9 piling machines, deployed by major contractors Access Engineering PLC, San Piling Ltd. (Sanken Construction), and D P Jayasinghe Piling Company Ltd. • Investment Figures: Represents a project investment of US$ 150 Mn by Home Lands—the largest by a single Sri Lankan developer—with total estimated project value exceeding US$ 300 Mn aimed at driving foreign exchange inflows. • Strategic Expansion: Home Lands has acquired a second adjacent land parcel exceeding 3 acres in Port City's Central Park District to expand its development footprint. • Track Record: Backed by over 5,000 units sold, 3,750+ homes delivered, and 2,850+ units currently under construction across Sri Lanka.

Construction & Real Estate
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📈 RIUNIT Investor Forum 2026 Spotlights Regional Growth & Real Estate

Diplomats, developers, and financiers convened in Malé on 11 August 2026 for the RIUNIT Investor Forum to explore FDI trends, regional collaboration, and emerging opportunities in the Maldives and South Asia. • Regional Collaboration & Economic Outlook: • Key themes emphasized cross-border investment, infrastructure, digital commerce, food/energy security, maritime connectivity, and tourism over regional competition. • Keynote address called for innovation-led capital in non-tourism sectors, including sustainable infrastructure, renewable energy, healthcare, and the blue economy. • Sri Lankan real estate presence highlighted via Home Lands Group alongside regional diplomatic leadership. • Maldives Real Estate & Housing Dynamics: • Massive expansion in Hulhumalé apartment supply: total units rose from 656 (2016) to 7,102 (2023). • High-end residential growth: luxury and semi-luxury apartment stock surged from under 500 units (2015) to over 3,000 (2023). • Property valuation surge: top-end transaction prices appreciated from ~$135 per sq. ft. (2016) to ~$230 per sq. ft. (2024). • Infrastructure impact: Sinamalé Bridge cited as a critical catalyst driving real estate valuations and investor confidence. • Key market drivers: demand for Islamic finance, land availability, project financing, and policy stability. • Forum Partners: • Supported by Maldives Islamic Bank, Amãna Takaful, Home Lands Group, HDC, MCDGI, RCC Maldives, and media partner NTV.

Construction & Real Estate
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Orion City Launches Orion Tower II to Elevate Sri Lanka’s ICT/BPM Infrastructure 📈

• Project Overview: Orion City officially announced the commencement of construction for Orion Tower II in August 2026, targeting completion by January 2029. • Key Features & Capacity: Delivers ~300,000 sq. ft. of Grade A office space. Integrates with Orion Tower I for a combined floor plate of ~36,000 sq. ft. featuring 180-degree Colombo views and flexible, column-free floor plans. • Sustainability & Design: Designed by DP Architects Singapore to target LEED Platinum Certification, reinforcing eco-friendly workplace standards. • Ecosystem & Facilities: Expands Orion City's integrated hub, offering flexible workspaces, childcare, EV charging, fitness, dining, and retail services to support local and foreign ICT/BPM enterprises.

Construction & Real Estate
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🏛️ Cabinet Approves Revised Rs. 25.6 Bn Agreement for Sethsiripaya Phase III

• Project Overview: The Cabinet approved a revised contract worth Rs. 25.58 Bn with M/s Maga Engineering Ltd. to complete remaining construction on Sethsiripaya Stage III. The project was initiated by the Urban Development Authority (UDA) to expand state administrative office space. • Cost Revision & Breakdown: - Original Estimated Capital Expenditure: Rs. 16.7 Bn (commenced in 2021). - Revised Total Project Cost: Rs. 38.48 Bn (includes past costs, remaining work, taxes, and other expenses). - Remaining Works Contract: Agreed at Rs. 22.76 Bn (excluding completed work value, payables, contingencies, and taxes). • Key Context & Timeline: Construction halted after completing three floors due to economic instability, material shortages, import restrictions, and rising construction sector costs. The project is now being expedited to meet office space demands. • Financing & Allocation: Funding will be shared by allocated institutions according to space usage, including the Energy Ministry, Inland Revenue Department (IRD), State Pharmaceuticals Corporation (SPC), and the UDA.

Construction & Real Estate
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📈 Ruwanpura Expressway Approval Set to Surge Real Estate Demand

Approval for the procurement of Phase 1 of the Ruwanpura Expressway (Kahathuduwa to Ingiriya) is expected to significantly boost land values along the corridor, according to LankaPropertyWeb (LPW). • Historical Performance (2017–2025): • Ingiriya: Average land asking price surged from Rs. 49,363 to Rs. 344,850 per perch, a 598.59% (7-fold) increase. • Padukka: Recorded a 151.30% growth. • District Comparisons: Outperformed Kalutara District (+123%) and Colombo District (+66.90%) averages. • Investment Returns: Outpaced the current average 12-month commercial bank fixed deposit rate of ~9.04% p.a. • Key Projected Growth Areas: • Primary Beneficiary: Ingiriya is positioned as the next major growth market at the Phase 1 endpoint. • Adjoining Corridors: Demand to strengthen in Polgasowita, Gonapola, Horana, and the interchange hub Kahathuduwa. • Future Regional Expansion: Activity expected to spread toward Kuruwita, Ratnapura, Pelmadulla, Balangoda, Belihuloya, Bandarawela, Ella, and Badulla under later phases. • Economic Impact: • Infrastructure-led connectivity reduces travel times to Colombo, driving residential, commercial, and mixed-use developments. • Offers long-term capital appreciation for property owners, developers, and investors seeking affordable Colombo alternatives.

Construction & Real Estate
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📈 Colombo Land Valuation Indicator Rises 5.9% in H1 2026

Sri Lanka’s Central Bank reports that the Land Valuation Indicator (LVI) for the Colombo District increased by 5.9% YoY during the first half of 2026, maintaining a moderate growth pace compared to H1 2025. • Overall Growth: LVI and all three sub-indicators expanded both year-on-year (YoY) and compared to the second half (H2) of 2025. • Sub-Indicator Breakdown (YoY): • Residential LVI: Up by 6.7% (leading overall growth) • Commercial LVI: Up by 5.7% • Industrial LVI: Up by 5.2% • Sequential Trend: Growth rates for both residential and industrial real estate segments accelerated compared to the increases recorded in H2 2025, signaling steady demand in key urban property sectors.

Construction & Real Estate
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🏢 Tilko Blue Ocean Signs BOI Agreement for Jaffna’s Tallest Residential Tower

Tilko Blue Ocean Holdings (Pvt) Ltd. has signed an agreement with the Board of Investment of Sri Lanka (BOI) to construct 'Yarl Royal Palace' in Jaffna, marking a major milestone for real estate and regional development in Northern Sri Lanka. • Project Overview: Located at No. 107, Kandy Road, overlooking Old Park, the project is set to become the tallest residential landmark in the Northern Province. • Development Scale: Features 19 levels in total—including 6 parking levels and 13 residential floors housing 78 premium units. • Economic Impact: Drives regional growth across construction, engineering, logistics, and property management while expanding urban infrastructure and local employment outside the traditional Colombo hub. • Diaspora Capital: Designed as a bridge to attract long-term investment from the global Sri Lankan diaspora (UK, Canada, Australia, Europe) into Northern property markets. • Strategic Significance: Highlights private-sector confidence and signals expanding opportunities in Sri Lanka's regional construction and urban development ecosystems.

Construction & Real Estate
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Appointments & Executive Moves

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🚨 High Demand for State Sector Jobs: 17,000 Apply for 500 Vacancies

• Public Sector Recruitment: Sri Lanka’s Ministry of Buddhasasana, Religious and Cultural Affairs received over 17,000 applications for just 500 state sector vacancies for work assistants across 25 state institutions. • Critical Operational Gaps: Long-standing recruitment freezes have caused severe labor shortages and operational gaps in key cultural and heritage bodies, including the Central Cultural Fund and the Department of Archaeology. • Key Staffing Shortages: Operational needs are particularly acute for lower-level roles, including a deficit of over 850 watchmen and work assistants required to maintain and secure historical sites such as Gal Vihara. • Current Progress: Rapid recruitment drives are currently underway to fill vacancies across all levels, ranging from executive grades downward, to resolve ongoing labor shortages.

Professional & Business Services
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📈 Dearo Venture Capital Appoints New Board, Unveils Strategic Vision

Sri Lanka’s largest venture capital institution, Dearo Venture Capital Ltd, announced a new Board of Directors led by Chairman Mr. K. M. M. Jabir, aiming to accelerate national entrepreneurial growth and governance. • Performance & Reach: Asset Base: Exceeds Rs. 5 Bn Operational Network: 25 branches islandwide with 350+ employees Customer Base: Serving over 25,000 clients • Key Sector Focus: Target areas for capital: tourism, agriculture, fisheries, manufacturing, education, engineering, and service industries Focuses on empowering Micro, Small, and Medium Enterprises (MSMEs) to boost employment and local economies Supported by specialized ecosystem subsidiaries: Dearo Agri, Dearo Education, Dearo Engineering, Dearo IT, and Dearo Investment • Leadership & Governance: Strengthened Board includes experienced leaders across banking, IT, risk management, HR, and compliance Reaffirmed commitment to corporate governance, transparency, and sustainable wealth creation to drive economic resilience

Capital Markets & Investment
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🏛️ Sampath Bank Appoints Dilip de S Wijeyeratne as Deputy Chairman

Sampath Bank PLC has officially appointed Mr. Dilip de S Wijeyeratne as its new Deputy Chairman, effective 10th September 2026, aimed at strengthening leadership in banking & financial services and driving AI-led growth. • Key Experience & Strategy: Brings extensive background in banking, risk management, compliance, investment banking, and corporate treasury. His leadership will support data-driven decision-making, digital transformation, and the integration of artificial intelligence across bank operations. • Internal Track Record: Associated with Sampath Bank for nearly 8 years, serving as Non-Executive Director (2018), Independent Director (2019), and Senior Independent Director (2022). He currently chairs the Board Audit Committee. • Broader Governance & Credentials: Former HSBC Group executive (Bahrain) and current Senior Independent Director at Singer (Sri Lanka) PLC and Hayleys Fibre PLC, as well as Independent Director at Janashakthi Insurance PLC. Fellow member of CA Sri Lanka, CIMA (UK), and graduate member of the Australian Institute of Company Directors.

Banking & Financial Services
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📈 HNB Finance Appoints 4 New Independent Directors

• Board Appointments: HNB Finance PLC has appointed four Independent Non-Executive Directors effective 8 September 2026, strengthening governance across banking, capital markets, corporate strategy, and public policy. • New Directors: • Renuke Wijayawardhane: Former CSE Chief Regulatory Officer with 31+ years in capital market regulation, corporate governance, and securities law. • Shanti Gnanapragasam: Banking veteran with 40+ years of expertise in treasury management, risk, and credit, holding board roles at Cargills Bank and Wealth Trust. • Nabiha Mohamed: Corporate finance and M&A specialist, Head of Strategy at Lynear Wealth, who led >$600 Mn in SOE divestitures for Sri Lanka's Ministry of Finance. • Dr. Thisuri Wanniarachchi: Development finance and policy expert with World Bank experience; played a key role in designing the Aswesuma social protection program.

Banking & Financial Services
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✈️ Vipul Misra Appointed as Acting CEO of SriLankan Airlines

• Management Update: Vipul Misra assumes the role of Acting Chief Executive Officer of national carrier SriLankan Airlines, effective 9 September 2026. • Executive Background: Brings over 20 years of experience in aircraft engineering and aviation leadership across legacy, full-service, and low-cost carriers, including Air India, Vistara, IndiGo, SpiceJet, Kingfisher Airlines, and Air Deccan. • Strategic Focus: Misra's technical and operational background aims to guide SriLankan Airlines during the interim period to enhance operational performance and support long-term sustainability.

Transport, Logistics & Infrastructure
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Solicitor General Viraj Dayaratne Appointed Acting Attorney General ⚖️

• Key Appointment: President Anura Kumara Dissanayake has appointed Solicitor General Viraj Dayaratne, PC as the Acting Attorney General during Attorney General Parinda Ranasinghe's temporary absence abroad. • Background & Experience: • Holds over 30 years of experience within the Attorney General’s Department, currently heading the Criminal Division. • Has served as Solicitor General since November 2024 and previously held the position of Acting Attorney General. • Appointed President’s Counsel in May 2018. • Economic & Capital Markets Governance: • Served as Chairman of the Securities and Exchange Commission of Sri Lanka (SEC) from 2020 to 2023, bringing regulatory leadership experience across Sri Lanka's capital markets and financial sector governance alongside his legal tenure.

Professional & Business Services
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👔 Pradeep Kahawalage Re-Elected as CNCI Chairman

• Leadership & AGM: Pradeep Kahawalage (CEO of Richardson Engineering Ltd.) was re-elected Chairman of the Ceylon National Chamber of Industries (CNCI) at its 65th AGM on 20 August 2026. Industry and Entrepreneurship Development Ministry Secretary Thilaka Jayasundara attended as Chief Guest. • CNCI Profile: Established in 1960 and incorporated by Act No. 10 of 1969, CNCI is Sri Lanka's oldest industrial chamber, celebrating its 66th anniversary this year. • Industrial Impact: CNCI plays a key role in driving manufacturing, engineering, innovation, and market expansion across Sri Lanka's industrial sectors. • Key Leadership Appointments: • Chairman: Pradeep Kahawalage • Deputy Chairman: Amila Sugathapala • Vice Chairpersons: Dr. Parakrama Herath, Udeni Nakandala, Samuditha Kumarasinghe, Ravi Rupasinghe • Secretary General: Samatha Wickramasena • Treasurer: Asanga Peiris • Immediate Past Chairman: Kevin Edwards

Professional & Business Services
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👔 Abans Finance Appoints Lakshman Gunasekara as New CEO

• Leadership Transition: Abans Finance PLC appointed Lakshman Gunasekara as Chief Executive Officer, effective 24 August 2026. • Industry Expertise: Gunasekara brings over 20 years of experience in Sri Lanka's financial services sector, specializing in operational leadership, strategic management, credit management, and risk management. • Career Background: He previously served as AGM at Lanka Orix Leasing Company (LOLC) from 2007 to 2019 before joining Abans Finance PLC as Head of Recoveries in September 2019. • Academic Qualifications: Holds an MBA from the University of Wolverhampton and a Bachelor’s degree specializing in Real Estate from the University of Sri Jayewardenepura. • Strategic Focus: His leadership aims to strengthen risk management, operational efficiency, and sustainable growth within the company.

Banking & Financial Services
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📈 Digital Mobility Solutions Lanka Appoints Priyanthini McNair to Board

• New Leadership: Digital Mobility Solutions Lanka PLC (PickMe) has appointed Priyanthini McNair as an Independent Non-Executive Director to strengthen its board governance and strategic growth. • Executive Profile: McNair brings over 25 years of global banking and corporate finance experience, having previously served as Global Co-Head of Corporate Coverage and Senior Managing Director at Emirates NBD Group, managing a multi-billion-dollar international portfolio. • Global Track Record: Her career includes over two decades at HSBC across major financial hubs including the UK, Hong Kong, MENAT, India, and Singapore, alongside early career audit training at EY and PwC in Sri Lanka. • Key Expertise: She holds CFA, CA Sri Lanka, and CIMA qualifications, offering high-level expertise in capital allocation, risk governance, ESG-aligned financing, and business strategy relevant to modern corporate governance.

Technology & Digital Services
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🏢 Leadership Changes at CT Land Development: Joseph Page Named Chairman, Indira Malwatte Joins Board

Sri Lanka’s real estate and property development sector saw key board appointments at CT Land Development PLC, effective 21 August 2026: • New Non-Executive Chairman: Joseph Page assumes the role, bringing over 40 years of private sector management expertise within the CT Holdings Group. • Corporate Background: Page currently serves on the boards of C T Holdings PLC, Cargills (Ceylon) PLC, Kotmale Holdings PLC, and several group subsidiaries spanning the real estate and asset management sectors. • New Independent Non-Executive Director: Indira Malwatte, former and first female Chairperson of the Sri Lanka Export Development Board (EDB), joins the board. • Strategic Expertise: Malwatte brings over 40 years of international experience across export promotion, agriculture, SME development, and supply chain management, backed by previous leadership roles in international projects with the World Bank, GIZ, and JETRO. • Current Directorships: She also serves as Chairman of Samson International PLC and holds directorships at Cargills (Ceylon) PLC, Kotmale Holdings PLC, and Lanka Shipping and Logistics Ltd. The appointments reinforce board governance and strategic leadership for the group's property development interests.

Construction & Real Estate
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👔 Jonathan Alles Appointed Chairman of Singer Finance

• Executive Transition: Seasoned banking professional Jonathan Alles has been appointed as the Chairman of Singer Finance (Lanka) PLC, effective 12 September 2026. He previously joined the board on 5 March 2026. • Leadership Background: Alles brings over 37 years of experience in the banking and financial services sectors. He was formerly the MD/CEO of Hatton National Bank PLC (HNB) and served as Chairman of the Sri Lanka Banks Association and Asian Bankers Association. • Industry Experience: He has held key leadership positions across several major financial and corporate entities, including HNB Finance PLC, Acuity Partners, and Lanka Clear Ltd, alongside international stints with HSBC and National Bank of Abu Dhabi. • Qualifications: Holds a First Class MBA in Finance from the University of Stirling, UK, and is an Associate Member of the Institute of Bankers of Sri Lanka.

Banking & Financial Services
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🤝 New Chinese Ambassador Wei Huaxiang Assumes Office in Sri Lanka

Wei Huaxiang has officially assumed duties as the new Chinese Ambassador to Sri Lanka, presenting credentials to President Anura Kumara Dissanayake and replacing outgoing envoy Qi Zhenhong. • Diplomatic Focus: Courtesy call paid on Foreign Minister Vijitha Herath, with discussions focused on strengthening long-standing bilateral relations and expanding cooperation across multiple sectors. • Economic Expertise: Envoy brings an extensive background in economic administration, international trade regulation, and global commercial policy from China’s Ministry of Commerce and Shandong Provincial Government. • Key Portfolios: Served as Consul General in Ho Chi Minh City, Vietnam (2022–2025), overseeing major trade, investment, and cross-border economic portfolios; holds a doctorate with expertise in WTO integration, digital trade infrastructure, and balance-of-payments policies. • Sri Lanka Context: The appointment comes at a crucial period for bilateral economic ties, foreign direct investment (FDI), trade policy alignment, and debt restructuring discussions.

Economy-wide / Cross-sector
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Startups & Entrepreneurship

CCWE Workshop Calls for Collective Action to Drive Women’s Economic Empowerment 📈

The Ceylon Chamber of Women Entrepreneurs (CCWE) and the University of Kelaniya hosted the national workshop "Advocating for Change: Women's Economic Empowerment through Collective Action" under the Agence Française de Développement (AFD)-supported FAME Project. • Strategic Focus: Moving beyond isolated interventions to build an interconnected ecosystem providing women access to finance, technology, markets, and policy institutions. • Economic Shift: Transitioning women-owned micro and livelihood-based enterprises into growth-oriented, sustainable businesses to boost industrial development, employment, and income generation. • Grassroots Integration: Emphasizing a bottom-up approach where regional and rural women entrepreneurs actively shape national policies rather than serving solely as program beneficiaries. • Policy & Partnerships: Calling for multi-stakeholder collaboration among government ministries, international partners, academia, and the private sector to achieve measurable progress in market access, productivity, and scaling capabilities.

Professional & Business Services
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📈 Bridging Academia & Industry to Drive Sri Lanka's SME Growth

• Economic Reality: SMEs contribute 52% to Sri Lanka's GDP and 45% to employment. With 1M youth entering the workforce over the next decade against just 300K expected formal jobs, university-industry partnerships are critical for job creation. • National Target: The National SME Strategy Framework (SME NEXUS) aims to boost the sector's GDP contribution from 52% to 80% through digital enablement, incubation, value-chain integration, and growth finance. • Industry Case Studies: • SLIIT's Bentley CAE Research Unit secured over US$ 0.33 Mn in funding across 20+ projects for UK-based Bentley Motors. • Student-led innovations highlight growth potential across ICT/BPM, AI tools, and tech-driven solutions (e.g., Team Akura's AI learning platform and SmartWheel AI navigation system). • Ecosystem Priorities: To build export-ready, technology-enabled enterprises, universities require deeper industry engagement through corporate mentorship, pilot environments, commercialization pathways, and IP protection.

Education & Training
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```json { "category": "Product & Service Launches / Business Expansions", "sector": "Transport, Logistics & Infrastructure" } ```

7. Regulatory & Policy News

**Awards & Recognitions**

Awards & Recognitions [National Business Excellence Awards -2026](https://m.youtube.com/watch?v=6KqeSQAMjVI) This video coverage highlights the ceremony and honors received by Sri Lanka's leading business enterprises at the National Business Excellence Awards 2026.

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Product & Service Launches / Business Expansions [MasterChef Sri Lanka Official Hospitality Partner Video](https://www.youtube.com/watch?v=yy5z6NYKgj0) This video highlights Cinnamon Hotels and Resorts' involvement in major international culinary initiatives and hospitality events, reflecting their strategic efforts to expand Sri Lanka's global profile.

Sustainability, ESG & Corporate Responsibility [Highlights of the Beach Clean-up Programme](https://www.youtube.com/shorts/pqIAYUD3_5o) This video provides visual coverage of the Bank of Ceylon beach clean-up initiative at Palangaturai Beach in Negombo mentioned in the news text.

**Politics & Government Impact**