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📈 NCE Expands Global Network with 21 Foreign MoUs to Boost Exporters

• Strategic MoUs & Network: National Chamber of Exporters of Sri Lanka (NCE) expands its global footprint by signing 21 MoUs with trade bodies across Australia, Canada, China, India, Italy, UK, US, and others. The latest partner is the Indian Chamber of Commerce (ICC). • Key Initiatives: Chamber facilitates B2B meetings, trade delegations, and market intelligence exchanges. Upcoming business delegations planned for India and Italy. • H1 2026 Country Growth: • India: US$ 688.47 Mn (+36.16% YoY; June spike of +156.73%) • Italy: US$ 337.20 Mn (+6.58% YoY) • China: US$ 159.22 Mn (+19.56% YoY) • Australia: US$ 135.86 Mn (+9.89% YoY) • Belgium: US$ 120.36 Mn (+4.72% YoY) • Japan: US$ 104.20 Mn (+15.74% YoY) • Other June Spikes: Türkiye (+74.37%), Mexico (+42.86%) • National Export Totals: H1 2026 merchandise exports reached US$ 6.9 Bn (+6.3% YoY), while total national export earnings grew +3.3% YoY to US$ 10.4 Bn.

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📈 NCE Expands Global Network with 21 Foreign MoUs to Boost Exporters

• Strategic MoUs & Network: National Chamber of Exporters of Sri Lanka (NCE) expands its global footprint by signing 21 MoUs with trade bodies across Australia, Canada, China, India, Italy, UK, US, and others. The latest partner is the Indian Chamber of Commerce (ICC). • Key Initiatives: Chamber facilitates B2B meetings, trade delegations, and market intelligence exchanges. Upcoming business delegations planned for India and Italy. • H1 2026 Country Growth: • India: US$ 688.47 Mn (+36.16% YoY; June spike of +156.73%) • Italy: US$ 337.20 Mn (+6.58% YoY) • China: US$ 159.22 Mn (+19.56% YoY) • Australia: US$ 135.86 Mn (+9.89% YoY) • Belgium: US$ 120.36 Mn (+4.72% YoY) • Japan: US$ 104.20 Mn (+15.74% YoY) • Other June Spikes: Türkiye (+74.37%), Mexico (+42.86%) • National Export Totals: H1 2026 merchandise exports reached US$ 6.9 Bn (+6.3% YoY), while total national export earnings grew +3.3% YoY to US$ 10.4 Bn.

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Sri Lanka–India Integration Demands Political Will & Institutional Reform 📈

A high-powered panel at the _India Calling_ forum emphasized moving beyond traditional trade to deep economic integration through supply chains, services, and investments. • Key Structural & Political Priorities: • Need for political champions, research-backed strategy, and negotiating talent to push second-generation FTAs (ETCA). • Overcoming institutional silos, vested interests, and five-year political cycle disruptions to build policy continuity. • Elevating public sector remuneration to attract top expertise and retain institutional memory. • Trade & Currency Realignment: • Calls to establish a direct INR–LKR settlement mechanism to bypass US Dollar intermediate conversions, lowering transaction costs and easing foreign exchange pressure. • Transitioning from "Made in Sri Lanka" vs "Made in India" to joint production networks targeting broader regional markets (e.g., BIMSTEC, Indian Ocean). • Sectoral & Economic Impact: • Upgrading trade frameworks benefits key growth areas like tea, apparel & textiles, logistics, renewable energy, tourism, and digital services. • Historical Indo-Lanka FTA drove Sri Lankan exports from $50M to $550M within 5 years, highlighting the potential for current integration effort.

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🇯🇵 Japan Grants Rs. 591 Mn for Sri Lanka Public Sector Capacity Building 🤝

• Financial Package: JPY 282 million (approx. Rs. 591 million) provided as grant assistance under Japan's Human Resource Development Scholarship (JDS) project. • Key Highlights: - Funds 15 young public sector officials to complete 2-year Master’s degree programs at Japanese universities starting in 2027. - Focus areas include public policy, international relations, macroeconomics, public finance, investment management, and industry development policy & investment promotion. - Agreement formalised via exchange of notes between Japanese Ambassador Akio Isomata and Treasury Secretary Dr. Harshana Suriyapperuma. • Strategic Impact: - Aims to build leadership capabilities, enhance individual and institutional capacities, and support national economic development. - Strengthens bilateral Sri Lanka-Japan diplomatic, professional, and institutional networks. - Expands on JDS legacy in Sri Lanka, which has empowered 254 public officers since 2010.

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🇮🇳 India Marks 80th Independence Day with Cultural & Bilateral Events in Sri Lanka

• Diplomatic Highlights: High Commissioner Santosh Jha hoisted the Indian Tricolor at India House, Colombo, as part of the global _Suryapath Tiranga_ relay. Homage was paid at the IPKF Memorial to honor fallen Indian soldiers. • People-to-People Ties: Record participation by Sri Lankans in the special edition of the _Bharat ko Janiye_ (Know India) Quiz. The top local winners were felicitated at the main celebration. • Cultural Initiatives: Events included art workshops (Madhubani and Warli), the India-Sri Lanka Maitri Painting Competition, and the India Through My Lens photography contest. • Public Engagement: Celebrations featured the "Swar Sangam" musical fusion concert with Veena Maestro Rajhesh Vaidhya and Sri Lankan artist Yohani, alongside India Fest 2026 at Havelock City Mall showcasing fashion, cuisine, and handicrafts. Special events were also held in Kandy, Jaffna, and Hambantota.

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📈 Sri Lanka-China Business Council Marks 25 Years, Urges Balanced Trade & Investment

The Sri Lanka-China Business Council (SLCBC) celebrated its 25th anniversary, focusing on deepening bilateral trade, addressing the longstanding trade imbalance, and boosting investment into Sri Lanka. • Key Priority Areas & Reforms Free Trade Agreement (FTA): Push to restart negotiations on the proposed Sri Lanka-China FTA. Tariff Rationalization: Sri Lanka plans to remove para-tariffs (CESS and PAL) by 2029 to enhance competitiveness and open markets. Trade Imbalance: Focus on reducing the import-export gap by expanding market access for Sri Lanka's key exports to China, particularly tea, gems, rubber, and spices. • Investment & Future Growth Sectors Key Industries: Calls for Chinese investment in value-added manufacturing, renewable energy, tourism, logistics, digital economy, and modern agriculture. Partnerships: Emphasis on joint ventures with local Sri Lankan businesses and expanding access for small and medium-sized enterprises (SMEs) in emerging areas like AI and digital trade. Frameworks: Strengthening risk management, transparency, and business facilitation mechanisms for long-term economic recovery.

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Sri Lanka & Japan Boost Cooperation in Digital Transformation and AI 📈

• High-Level Engagement: The Ministry of Digital Economy held discussions with a Japan International Cooperation Agency (JICA) delegation to expand bilateral partnership in digital transformation and artificial intelligence. • Digital Broadcasting Infrastructure: Key focus was given to accelerating the Digital Television Project and exploring local production of Set-Top Boxes to bolster domestic manufacturing and reduce import dependency. • AI Infrastructure & Capacity: Both sides discussed setting up a National AI Data Centre for Sri Lanka's future AI infrastructure, alongside joint capacity-building initiatives, tailored AI solutions, and international technical knowledge exchange.

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📈 Urgent Call to Fill Key Diplomatic Vacancies in US and China

General Secretary of the BRICS Chamber of Commerce, Kosala Wickramanayake, has issued an open letter to President Anura Kumara Dissanayake and Foreign Minister Vijitha Herath calling for immediate envoy appointments to Beijing and Washington D.C. • China Vacancy (Strategic Gap): The Ambassador position in Beijing has been vacant for over six months. China is Sri Lanka’s second-largest economy partner and a crucial player in debt restructuring, infrastructure, and foreign direct investment. • US Vacancy (Critical Export Market): The US is Sri Lanka’s largest single export market, absorbing nearly 30% of Sri Lankan goods. Prompt representation is vital to secure market share, advance IMF engagement, and support sectors like export trade and apparel & textiles. • Proposed Actions: • Concurrently nominate ambassadors for both capitals within 30 days. • Select envoys with commercial credibility and diplomatic acumen over political seniority to drive economic recovery.

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📈 Sri Lanka Resumes Australia 'Invest Sri Lanka' Forums After 9 Years

• Overview & Events: The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) are hosting the 'Invest Sri Lanka' Investor Forums in Sydney and Melbourne from 17th to 20th August 2026. This marks the first Australian roadshow since 2017, targeting institutional investors and the diaspora. • Market Growth & Valuation: The All-Share Price Index (ASPI) expanded by 360% (CAGR of ~28.98%), surging from 4,846 points in May 2020 to 22,310.80 points by May 2026. Sri Lanka’s market Price-to-Earnings (P/E) ratio stands at 11.20x— Asia's 2nd lowest. • Australian Inflows & Inbound Remittances: Following the 2017 forum, Australian buy turnover rose over 700% from LKR 72.9mn to LKR 603.8mn in six months. By end-2025, buy turnover hit Rs. 1.85 bn, establishing Australia as a top-10 source for foreign market inflows and diaspora remittances. • Key Stakeholders: Key participants include the capital markets, banking sector (Platinum sponsor HNB Group), real estate & infrastructure (CHEC Port City Colombo), and the Board of Investment (BOI).

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🇷🇺 Russian Construction Giant NOSTROY Visits Sri Lanka to Boost Bilateral Links 📈

A 24-member business delegation from Russia’s National Association of Builders (NOSTROY)—representing over half of Russia's construction companies—visited Sri Lanka from 22–25 July to explore trade, investment, and labour mobility. • Key Discussion Areas: • Infrastructure & Urban Development: Discussions held with the Ministry of Transport, Highways & Urban Development, Urban Development Authority (UDA), and Board of Investment (BOI). • Tourism: Strategic talks on foreign investment in hotel development and tourism infrastructure via SLTDA and BOI. • Foreign Employment: Bilateral talks with the Sri Lanka Bureau of Foreign Employment (SLBFE) to secure job opportunities for qualified Sri Lankan construction professionals in Russia. • High-Level Engagement: • Delegation led by NOSTROY Vice President Anton Moroz. • Met with Foreign Affairs, Foreign Employment & Tourism Acting Minister Arun Hemachandra and Tourism Deputy Minister Prof. Ruwan Ranasinghe.

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Port City Colombo Expands Regional Investor Outreach to Maldives 📈

The High Commission of Sri Lanka in the Maldives and CHEC Port City Colombo (Pvt) Ltd hosted the Port City Colombo Investor Forum on 10th August 2026 in Malé. The event targeted Maldivian business leaders, investors, and developers to promote cross-border investment and regional expansion across South Asia. • Key Highlights & SEZ Incentives: • Project Scope: 269-hectare master-planned city and Special Economic Zone (SEZ). • Ownership & Capital: 100% foreign ownership with full capital and profit repatriation. • Currency Flexibility: Facilitates transactions across 16 designated foreign currencies. • Regulation: Single-window regulatory framework managed under the Colombo Port City Economic Commission Act 2021. • Banking & Strategic Presence: • Direct presence of Sri Lankan banks in the Maldives—including Bank of Ceylon, Commercial Bank of Ceylon, and Hatton National Bank—supports seamless transaction gateways. • Commercial Bank of Ceylon has opened a physical branch inside the SEZ to service investors directly. • Regional Strategy: • Follows similar investor outreach forums held in Singapore, the UAE, and Oman earlier this year. • Aims to move bilateral ties with the Maldives beyond traditional tourism and trade into high-value investment, innovation, and commercial partnerships.

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📈 Sri Lanka and EU Hold Ministerial Investment Dialogue to Drive Reforms

• Key Objective & High-Level Engagement: The Government of Sri Lanka and the European Union (EU) convened a ministerial-level Investment Dialogue at Shangri-La Colombo on 31 July 2026. The session aimed to sustain investor confidence, enhance policy consistency, and expand economic cooperation under Sri Lanka's IMF-supported reform programme. • Regulatory & Policy Reforms: Following an independent Investment Climate Assessment, discussions focused on translating economic vision into practice through key reforms: - Implementation of a digital Single Window Investment Approval System - Introduction of the proposed Investment Protection Bill - Modernization of customs and industrial zones • Trade & Market Access: - Emphasized the critical importance of continued preferential market access under the EU GSP+ scheme, which expires on 31 December 2026. - Highlighted investment expansion opportunities via the EU’s Global Gateway strategy. • Key Participants: Represented by the Chairman of the Board of Investment (BOI), Deputy Ministers of Finance, Foreign Affairs, and Industries, alongside the EU Ambassador and Ambassadors of France, Germany, Italy, and the Netherlands.

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📈 President Dissanayake Meets CCCC Delegation to Expand Port City & FDI Focus

• Key Discussions: President Anura Kumara Dissanayake met with a senior China Communications Construction Company Limited (CCCC) delegation led by Zhang Bingnan at the Presidential Secretariat to review ongoing and future development initiatives centered on Colombo Port City. • Sector Expansion: Citing high confidence in Sri Lanka's current economic policies, CCCC expressed interest in expanding foreign investment into key sectors including renewable energy, trade & logistics, and digital services to position the country as a regional hub. • Employment & Local Impact: CCCC committed to sourcing 90% of the workforce for its investment projects locally, supporting national employment and workforce development. • Key Attendees: The high-level meeting included Minister of Labour & Deputy Minister of Finance Dr. Anil Jayantha Fernando, Colombo Port City Economic Commission Chairman Harsha Amarasekera, alongside senior executives from CCCC and China Harbour Engineering Company (CHEC).

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Product & Service Launches / Business Expansions

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📈 Accor Debuts Pullman Brand in Sri Lanka via Softlogic Partnership

Global hospitality giant Accor has launched its Pullman brand in Sri Lanka through a strategic partnership with Softlogic Holdings PLC, introducing two 5-star properties. • Overall Expansion: Accor debuts two premier properties—Pullman Colombo City Centre and Pullman Bentota Resort & Spa—marking a key expansion step in its South Asia strategy. • Property Breakdown: - Colombo (Urban Hospitality): Pullman Colombo City Centre offers 219 rooms/suites alongside diverse dining, flexible social spaces, and rooftop event facilities targeting business and leisure travellers. - Bentota (Leisure & Coastal Tourism): Pullman Bentota Resort & Spa features 165 ocean-, river-, and pool-view rooms/suites, targeting family travel, wellness, water sports, and destination events. • Economic Impact: Highlights growing investor confidence in Sri Lanka's economic resurgence. The dual openings aim to elevate national tourism & hospitality infrastructure while boosting local employment, conference business, and experiential travel.

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People’s Bank Unveils ‘YES Infinity 2026’ Lifestyle Benefits for Youth 📈

• Campaign Overview: Introduced by People’s Bank to mark International Youth Day 2026, the YES Infinity 2026 program delivers tailored banking solutions for Sri Lanka's youth, active from 12 August to 30 September 2026. • Key Financial & Lifestyle Privileges: • Up to 40% discounts at selected partner merchant outlets island-wide when using the YES Debit Card. • A 0.5% interest rate reduction on People’s Auto Loans for eligible YES Account holders. • Full access to 24/7 digital and cash deposit services across 350+ Cash Deposit Machines (CDMs) and Cash Recycling Machines (CRMs) nationwide. • Strategic Alignment: Designed for both new and existing youth customers to promote smart savings, financial accessibility, and digital adoption while supporting personal lifestyle and mobility aspirations.

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✈️ Vietjet Launches Colombo Operations Today

Vietjet officially commenced flights between Colombo and Vietnam today, operating three flights weekly. The new route is expected to significantly enhance Sri Lanka's aviation, tourism, and trade connectivity with Vietnam and the wider Asian region. • Connectivity & Diversification: - Creates a direct gateway to Vietnam and onward connections across key Asian markets. - Aligns with national efforts to reduce reliance on traditional source markets by expanding into emerging Asian regions. • Industry Impact & Strategy: - Opportunities identified in boosting tourist arrivals, trade, investment, and people-to-people links. - Industry leaders emphasize the need for immediate consumer promotion campaigns in Vietnam to build demand. - Local Destination Management Companies (DMCs) urged to collaborate, protect destination value, and avoid price wars to sustain long-term business growth.

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📦 Ex-Pack Corrugated Cartons Plans Overseas Expansion into Zambia

Sri Lanka's Ex-Pack Corrugated Cartons PLC has announced plans to set up a carton manufacturing operation in Zambia, marking its first international expansion under a long-term growth strategy. • Investment & Approvals: • Board approval granted on 13 August 2026. • Preliminary approval secured from the Central Bank of Sri Lanka (CBSL). • Project investment value is currently under assessment and will be announced upon final regulatory clearances. • Strategic Focus & Capabilities: • Specialises in corrugated cartons, eco-friendly warehousing accessories, and storage solutions for key sectors including apparel & textiles. • Follows a recent major tech transformation replacing legacy machinery with high-efficiency equipment to boost production.

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🎵 Rookantha Goonatillake Returns with 'A Timeless Journey' Concert

• Event Overview: Legendary musician Rookantha Goonatillake returns to the stage on 15 August at the Sugathadasa Indoor Stadium for "Rookantha – A Timeless Journey". • Career Celebration: Beyond his singing performance, the show highlights his multi-decade musical catalogue, celebrating his work as a songwriter and composer. • Digital Reach: Expanding the reach of the entertainment & creative industries, the event will be livestreamed via SLVLOG to engage overseas Sri Lankans and remote audiences.

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📱 AIA Insurance Lanka Launches AIA+ All-in-One Digital Ecosystem

• Core Launch & Purpose: AIA Insurance Lanka launched 'AIA+', an integrated platform combining life insurance management, health wellbeing, digital payments, claims processing, and rewards to elevate customer experience. • Key Features & Operations: Policyholders can instantly manage policies, execute premium payments with immediate confirmation, track claims in real time, and view transaction status anytime via the app. • Wellbeing & Rewards Model: Promotes proactive health management by enabling users to complete wellness challenges (such as step tracking and hydration goals) to earn points redeemable for lifestyle rewards. • Digital Transformation Context: Developed under 'AIA NOVA'—the company's flagship digital transformation initiative—to modernise customer engagement and operations across Sri Lanka's insurance sector. Available on Apple App Store and Google Play Store.

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📈 Honor ROBOT PHONE Pre-Orders Surpass 400,000 Units Ahead of Official Launch

• Market Demand & Milestones Chinese OEM Honor announced that pre-orders for its new ROBOT PHONE have exceeded 400,000 units within just three weeks of its initial teaser release. Honor Chief Imaging Engineer Luo Wei confirmed strong consumer demand ahead of the official sales launch scheduled for August 18. • Product Offering & Key Features The flagship device is available in two RAM + storage options featuring a premium price tag. Key technical highlights include a specialized YOYO mode and ARRI cinematic imaging functionality, designed to deliver an upgraded mobile photography experience. • Industry Context The rapid early adoption of premium, AI-integrated hardware underscores growing consumer appetite for next-generation mobile devices, presenting wider sales and distribution opportunities for the global and domestic mobile telecommunications and ICT/BPM retail segments.

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Advantis Deploys Sri Lanka's Largest Crane for Heavy Logistics 📈

• Core Deployment: Advantis, the logistics arm of Hayleys PLC, deployed Sri Lanka’s first 900-tonne crawler crane through a joint venture with Sarens, significantly boosting domestic heavy-lift capabilities. • Expanded Fleet: The 900-tonne crane works alongside a 280-tonne crawler crane, wind blade adaptors, tower trailers, and prime movers to deliver end-to-end project execution locally. • Strategic Impact: Enhances local capacity for complex operations across logistics & infrastructure, industrial projects, factory/power plant relocations, and national renewable energy goals. • First Project: Supporting Haywind One Limited’s 50MW wind power project, handling port management, transportation, site unloading, and wind turbine erection.

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ISF Launches World’s First Automated Coconut Dewatering System 📈

• Key Innovation: Sri Lankan engineering firm ISF unveiled the world’s first fully automated coconut dewatering system, replacing manual handling to boost productivity, cut labor dependence, and improve ROI. • Technology & Context: Designed locally using automation and AI, positioning engineering and machinery manufacturing to boost coconut processing capabilities across the region. • Global Expansion: Export machine to ship to the Philippines in weeks with local support; targets clients in Indonesia and Philippines to compete against Western tech at lower costs. • Company Profile: Established in 1977, ISF offers tech solutions across the coconut, dairy, food, pharmaceutical, chemical, and FMCG sectors.

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United Motors Unveils 2027 Mitsubishi Outlander Sport in Sri Lanka 📈

• Market Launch: United Motors Lanka PLC (UML) introduced the upgraded 2027 Mitsubishi Outlander Sport at the Auto Vision Colombo Motor Show, expanding options in Sri Lanka's automotive market. • Vehicle Specs: The compact SUV features a fuel-efficient 1.5L MIVEC engine, CVT transmission, 222mm ground clearance, and an Intelligent Drive Mode Selector (Normal, Wet, Gravel, Mud) tailored for Asian road conditions. • Key Features: Equipped with a 12.3-inch display with wireless Apple CarPlay/Android Auto, panoramic glass roof, Nanoe™ X air purification, multi-around monitor, and a 5-Star ASEAN NCAP safety rating. • Company Context: UML has been the authorized distributor for Mitsubishi Motors since 1985, backing the model via its nationwide sales and aftersales network.

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🚗 Kia Motors Lanka Secures Corporate Fleet Order from CBL Group

• Transaction Highlights • Kia Motors (Lanka) Ltd. delivered a fleet of 16 Kia Sonet smart urban SUVs to CBL Group, one of Sri Lanka's largest food manufacturing conglomerates. • Vehicles were financed and managed by Central Finance through an operating lease model. • Corporate Mobility & Sector Impact • Strengthens Kia's footprint in Sri Lanka's corporate mobility and automotive sectors. • Comes as Kia Motors (Lanka) celebrates 30 years of local operations in 2026. • Reflects rising confidence from major Sri Lankan corporates in trusted vehicle suppliers for fleet management. • Product Context • First introduced to Sri Lanka in 2025, the Kia Sonet is a smart urban SUV equipped with advanced safety, design, and connected vehicle technology.

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Hero-Abans Auto Launches Hero XOOM 125R Hadawadakaru Scooter 📈

• Overview & Pricing: Hero MotoCorp, in partnership with Abans Auto, has launched the Hero XOOM 125R Hadawadakaru targeted at young riders in Sri Lanka. The scooter is priced at LKR 834,900. • Key Performance & Features: • Powered by Fuel Injection (Fi) tech with disc brakes, accelerating 0-60 km/h in 7.6 seconds (fastest in its 125cc segment). • Segment-first features: 14-inch alloy wheels, sequential LED winker lights, and I3S (idle stop-start) fuel-saving tech. • Tech & Convenience: Digital speedometer, Bluetooth with Turn-by-Turn navigation, USB charging port, external fuel lid with open buzzer, and under-seat storage capable of holding a full-faced helmet. • Market & Distribution Network: • Hero MotoCorp resumed operations in Sri Lanka in April 2025 via Abans Auto. • Backed by an island-wide network of 185 sales points, 3 exclusive Hero Signature Service Centres (Peliyagoda, Panadura, Kurunegala), and over 500 service/spare parts outlets. • Marketing: Launch supported by a multi-lingual campaign featuring an original song by Kaizer (Sinhala) and Jega (Tamil).

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Corporate News

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📈 JAT Holdings Posts 34% YoY Revenue Growth to LKR 3.04 Bn in Q1 FY26/27

• Financial Performance Overview: Group revenue surged 34% YoY to LKR 3.04 Bn for the quarter ended 30 June 2026. Gross profit grew 29% YoY to LKR 1.07 Bn, though GP margin moderated to 35% (from 37%) due to higher global commodity costs. Profit After Tax (PAT) remained steady at LKR 150 Mn, while Profit Before Tax (PBT) stood flat at LKR 167 Mn. Operating profit fell 25% YoY to LKR 174 Mn due to Mirotone consolidation expenses, software depreciation, and higher fuel and transport costs. • Geographic Breakdown: - International Operations: Revenue spiked 110% YoY to LKR 1.21 Bn. Revenue in Bangladesh grew 33% in BDT terms (led by 61% growth in Coat-Ex sales and 31% in industrial), while the Maldives grew 624% QoQ. Mirotone NZ posted 10% QoQ growth in NZD terms despite a loss of NZD 59,000, while Mirotone Australia was established as a wholly owned subsidiary. - Domestic Operations: Sri Lankan revenue grew 8% YoY to LKR 1.83 Bn. • Sector & Segment Performance: - Wood Coatings: Maintained a 57% market share with 8% QoQ revenue growth. - Paint, Chemicals & Related: Recorded 85% QoQ revenue growth, capturing 11% of the Brilliant White segment. - Brushes & Rollers: Achieved 78% QoQ revenue growth, expanding reach by 12% to over 3,000 outlets. - Furnishing: Direct revenue fell 7%, but total value (including customer-paid LC components) surged 64% QoQ, with a confirmed pipeline of ~LKR 763 Mn. - EV Charging Infrastructure: Volt Charge maintained its position as Sri Lanka’s largest EV charger manufacturer (>3,500 units to date) and secured a landmark order for 2,000 chargers from John Keells CG Auto (BYD distributor).

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📈 Hayleys PLC Secures Historical S&P 'B+' Rating

Hayleys PLC became the first Sri Lankan corporate to receive a foreign currency issuer credit rating from S&P Global Ratings, securing a 'B+' with a Stable Outlook—standing two notches above Sri Lanka’s 'CCC+' sovereign rating. • Rating & Outlook Highlights: - Rating supported by strong export earnings, limited FX debt, and operational resilience demonstrated during the 2022-2023 debt crisis. - S&P expects FFO-to-debt ratio to stay above 12% with annual EBITDA growth of 10%-12% over the next 2-3 years. - Revenue growth projected at 13%-14% in FY27, backed by real GDP growth forecasts for Sri Lanka (3.7% in 2026). • Geographic & Segment Breakdown: - 50% of Group revenue generated overseas: Asia (25%), US (10%), and Europe (10%). - Core export drivers include hand protection (gloves), purification (activated carbon), textiles, and tea. - Subsidiary Singer (Sri Lanka) PLC drives 20% of Group earnings, holding a 37% market share in local consumer durables. • Expansion & Capital Expenditure: - Annual capex of Rs. 40-50 Bn planned for FY27-FY28, primarily targeting expansion in the purification and hand protection sectors. - Annual dividend payouts projected at Rs. 8-10 Bn over FY27-FY28.

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📈 Aitken Spence FY27 1Q Performance Summary

Diversified conglomerate Aitken Spence PLC commenced FY 2026/27 with strong earnings momentum for the first quarter ended 30 June 2026. • Overall Financial Highlights • Group PBT: Up 74% YoY to Rs. 1.74 Bn (recorded at Rs. 1.7 Bn). • Group PAT: Increased 158% YoY to Rs. 1.0 Bn. • Group EBITDA: Rose 23% YoY to Rs. 5.3 Bn. • Profit Attributable to Equity Holders: Up 172% YoY to Rs. 1.5 Bn. • Sector Breakdown • Maritime & Freight Logistics: PBT up 58.2% YoY to Rs. 1.7 Bn, driven by higher liner volumes, overseas port management, freight forwarding, and container services. • ICT/BPM (Services Sector): Services PBT up 64.8% YoY to Rs. 452 Mn, significantly boosted by the Port City BPO venture. Bunkering operations also added to performance. • Strategic Investments: Strong turnaround reporting PBT of Rs. 650 Mn (vs. loss last year), led by operational growth and forex gains. • Tourism Sector: Recorded a PBT loss of Rs. 1.0 Bn due to softer UK/European demand amid Middle East geopolitical tensions; partially offset by destination management and airline GSA businesses. • Sustainability Milestones • Repurposed 44,490 MT of municipal solid waste and harvested 5.5+ million cubic metres of rainwater during 1Q to support its net-zero strategy.

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📈 SLT Group PAT Soars 54.4% to Rs. 6.6 Bn in 1H 2026 Driven by Broadband Surge

• Overall Financials: Consolidated Profit After Tax (PAT) accelerated 54.4% YoY to Rs. 6.6 Bn in 1H 2026, supported by an 11.1% YoY revenue growth to Rs. 61.3 Bn. Group EBITDA rose 13.7% to Rs. 24.1 Bn, while PBT climbed 51.4% to Rs. 8.6 Bn. State contribution reached Rs. 18.6 Bn. Operating expenses expanded 9.6% to Rs. 37.2 Bn due to a ~10% rupee depreciation, 6%+ inflation, and elevated energy tariffs. • Sector & Unit Breakdown: • SLT PLC: Revenue reached Rs. 39.3 Bn (+10.7% YoY). PAT surged 74.9% YoY to Rs. 4.6 Bn, outstripping a 10.3% rise in operating expenses. • Mobitel: Revenue grew 12.9% YoY to Rs. 26.3 Bn, driven by strong broadband adoption. Operating profit rose 30.3% to Rs. 2.6 Bn and PAT accelerated 62.0% YoY to Rs. 1.7 Bn. • Strategic Focus & National Impact: Growth was anchored in the telecommunications & digital infrastructure segment via fixed-line fibre (FTTH) and mobile data. The Group is building dollar reserves to hedge foreign currency risks, self-financing network upgrades, and expanding 5G, cloud, and AI capabilities to support Sri Lanka's digital economy. Operations for a 5th submarine cable are planned for early 2027 to boost global connectivity. • 2Q 2026 Performance: Group revenue grew 11.7% YoY to Rs. 30.5 Bn, boosting 2Q PAT by 55.3% to Rs. 3.5 Bn. SLT PLC 2Q PAT jumped 97.2%, while Mobitel PAT grew 60.6% YoY.

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🏨 Ceylon Hotels Corporation Marks 60 Years with Heritage-Focused Investments

• Overview: Established in 1966, Ceylon Hotels Corporation PLC (CHC)—managed by Galle Face Group Ltd—is celebrating 60 years of contributing to Sri Lanka’s tourism & hospitality infrastructure and regional connectivity. • Portfolio Highlights: Portfolio includes EKHO Hotels & Resorts, historic Queen’s Hotel and Hotel Suisse in Kandy, alongside the Heritage Collection across key cultural, historical, and nature destinations. • Reinvestment & Upgrades: • Pussellawa Rest House: Renovations recently completed. • Belihuloya & Kithulgala Rest Houses: Currently undergoing redevelopment to enhance guest experiences while retaining destination heritage; both set to reopen in October 2026. • Hotel Suisse (Kandy): Completed extensive renovations to modernize facilities while preserving its historic character. • Strategic Focus: Position heritage properties to meet evolving global demand for authentic, destination-led travel experiences, supporting local employment and community-driven regional tourism across Sri Lanka.

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📈 Hemas Holdings Expands to East Africa with Strategic Kenya Acquisition

Hemas Holdings PLC has announced its first international acquisition, acquiring a majority stake in Kenya’s Twiga Stationers & Printers Limited to expand its international footprint. • Key Transaction Details: Hemas enters East Africa via Kenya—a market with a GDP exceeding US$ 136 Bn and a population over 54 Mn—positioning the group for regional growth. • Strategic Synergies: Strengthens Hemas’ Consumer Brands segment by leveraging synergies between Twiga's established brands (Kasuku, CrownBird, Envoy) and Atlas Axillia, Sri Lanka's leading learning and stationery brand. • Regional Footprint: Expands international operations, adding East Africa alongside Bangladesh as key regional growth pillars for Hemas’ consumer operations.

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📈 JXG Posts LKR 6.4Bn Revenue in Maiden Results Post-CSE Listing

Janashakthi PLC (JXG) reported its first quarter (Q1 FY27) financial results following a 3-times oversubscribed listing on the Colombo Stock Exchange (CSE). • Overall Figures: Consolidated revenue reached LKR 6.4Bn (vs LKR 7.2Bn YoY), impacted by global uncertainties and Middle East geopolitical tensions. Mark-to-market pressures on fixed income trading caused a consolidated Group net loss of LKR 780.8Mn. • Sector Breakdowns: • Financial Services & Investment Banking: First Capital Holdings PLC contributed LKR 2.1Bn to revenue but recorded a Loss After Tax of LKR 726Mn due to short-term interest rate volatility affecting fixed income positions. Advisory, wealth management, and stockbroking units remained resilient. • Insurance: Janashakthi Insurance PLC reported LKR 2.5Bn in Q1 revenue. For H1 FY26, Net Profit After Tax (NPAT) reached LKR 129Mn, driven by a 36% YoY growth in Gross Written Premium (GWP) to LKR 5.1Bn. Total assets expanded to LKR 41.1Bn. • Non-Bank Financial Institutions (NBFI): Janashakthi Finance PLC contributed LKR 1.8Bn to Group revenue, with NPAT surging 51% YoY to LKR 90.4Mn, backed by a 24.7% rise in Net Operating Income to LKR 837.8Mn. • Strategic Outlook: JXG continues its expansion in the insurance and financial services sectors, highlighted by the proposed acquisition of Continental Insurance Lanka Limited to re-enter general insurance. This detailed analysis of the company's valuation and IPO performance provides further insights into JXG's strategic market positioning: [Janashakthi IPO Analysis](https://www.youtube.com/watch?v=HyVKZ6iE5uQ). This video is relevant as it provides a deep-dive analysis into Janashakthi Group's IPO context, financial ratio evaluations, and capital allocation strategy following its CSE listing.

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Pan Asia Bank Asset Base Crosses Rs. 350 Bn as H1 PAT Rises 16% to Rs. 2.5 Bn 📈

Pan Asia Banking Corporation PLC reported strong first-half financial performance for the period ended June 30, 2026, driven by business momentum in core banking operations. • Financial Performance: PAT grew 16% YoY to Rs. 2.50 Bn. Net Interest Income rose 13% to Rs. 7.07 Bn, while Net Fee and Commission Income jumped 28% to Rs. 1.50 Bn. Earnings per Share (EPS) stood at Rs. 5.65 (+16%). • Balance Sheet & Lending Expansion: Total Assets grew 15% to Rs. 354.03 Bn, passing the Rs. 350 Bn milestone for the first time. Customer deposits expanded 17% to Rs. 271.24 Bn, while Gross Loans and Advances rose 14% to Rs. 248.13 Bn, supported by credit demand in SME, corporate, and retail segments. • Asset Quality & Risk Buffers: Gross Stage 3 Loans ratio improved to 3.97% (from 4.62%), and Net Stage 3 Loans ratio improved to 1.39% (from 1.73%). Provision coverage increased to 64.92%, with impairment charges raised by 32% as a prudential buffer. • Capital & Liquidity: Maintained a healthy capital base with a Total Capital Ratio of 16.47% (vs. 12.50% minimum) and NSFR of 128.96% (vs. 100% minimum).

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📈 Teejay Group Q1 FY2026/27: Revenue Softens Amid Supply Chain Disruptions & Pricing Pressures

Teejay Group, a major player in Sri Lanka's apparel & textiles sector, released its performance summary for Q1 FY2026/27 (ended June 30, 2026), reflecting global market headwinds and geopolitical supply chain impacts. • Financial Performance: • Revenue: LKR 15.64 Bn (down 1% YoY), hit by lower volumes, pricing pressures, and Strait of Hormuz supply disruptions. • Gross Profit: LKR 0.3 Bn (down 75% YoY). • Net Result: LKR 0.48 Bn net loss (compared to a profit in Q1 FY2025/26). • Cost Management & Operational Realignment: • Administrative Expenses: LKR 136 Mn (down 16% YoY). • Distribution Expenses: LKR 932 Mn (down 3% YoY). • Mitigated losses through organizational restructuring and disciplined expense optimization. • Balance Sheet Strength: • Cash Balance: LKR 10.6 Bn. • Net Asset Base: LKR 34 Bn. • Net Asset Value per Share: LKR 47.08. • Outlook: Focus remains on long-term transformation, product diversification, and multi-location operations to build resilience as global demand recovers.

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📈 Dialog Consolidates 1H 2026 Performance with Rs 19.3Bn NPAT

• Group Financial Highlights (1H 2026): • Revenue: Rs 95.5Bn (up 9% YTD) • EBITDA: Rs 50.0Bn (up 23% YTD, EBITDA margin at 52.3%) • Net Profit (NPAT): Rs 19.3Bn (up >100% YTD, supported by forex gains and lower finance costs) • Operating Free Cash Flow: Rs 18.4Bn • Segment Performance: • Mobile & Core: Dialog Axiata PLC contributed 77% to revenue (Rs 73.3Bn, up 11% YTD) and NPAT reached Rs 15.8Bn. • Digital Pay TV: Dialog Television revenue grew 17% YoY to Rs 7.5Bn, with NPAT of Rs 0.4Bn. • Fixed Telecoms & Broadband: Dialog Broadband Networks revenue rose 3% YTD to Rs 17.9Bn, driving NPAT up 41% to Rs 4.1Bn. • National Contribution & Investment: • State Revenue: Remitted Rs 30.9Bn to the GoSL (Rs 8.1Bn direct, Rs 22.8Bn indirect), up 9% YoY. • Digital Infrastructure: Invested Rs 18.5Bn in Capex, accelerating 5G rollout to over 1,000 live sites, launching 5G-powered Dialog Air Fibre, and introducing Dialog Pay to expand ICT/BPM and digital financial services. • Shareholder Returns: • Board approved a 2nd interim dividend of Rs 0.70/share (YTD DPS: Rs 1.40; annualized yield: 6.1%).

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Five Bidders Shortlisted for Canwill Holdings Divestiture 📈

• Divestiture Progress: The Government shortlisted 5 out of 8 interested parties for the stake sale in State-Owned Enterprise Canwill Holdings Ltd., advancing them to the Request for Proposals (RFP) stage. • International Interest: Indian hospitality firms Chalet Hotels Ltd. and Juniper Hotels Ltd. were pre-qualified by the Ministry of Finance. • Local & Consortium Bids: Three other shortlisted proposals involve Sri Lankan firms, including a consortium of Phoenix Ventures Ltd. and Bluestone Capital Ltd., Ceylon Steel Corporation Ltd., and a joint offer by EML Consultants PLC with Italy’s Kimetal S.r.L. • Key Assets: Canwill Holdings is the parent company of: • Sinolanka Hotels & Spa Ltd.: Developing a 47-storey Grand Hyatt Colombo project featuring 458 hotel rooms and 100 serviced apartments. • Helanco Hotels & Spa Ltd.: Held a 9.42-acre beachfront lease in Hambantota, which expired due to non-initiation of construction. • Process Timeline: Expressions of Interest were called on 24 December 2025, with 8 parties submitting by the 16 March deadline. Shortlisted pre-qualified bidders now proceed to the second-stage RFP process.

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📈 Janashakthi Life Outperforms Sector with 36% H1 2026 Revenue Growth

• Financial Performance: Gross Written Premiums (GWP) surged 36% YoY to Rs. 5.11 Bn in H1 2026, significantly outpacing the life insurance industry's 20.8% growth rate. Profit Before Tax (PBT) stood at Rs. 271 Mn (excluding period surplus transfer). • Asset Base: Balance sheet assets expanded to Rs. 41.14 Bn as of Q2 2026, up from Rs. 40.37 Bn at the end of 2025, providing a stronger base to support an expanding policyholder network. • Claims & Policyholder Benefits: Paid Rs. 2.24 Bn in claims and benefits during H1 2026, maintaining critical financial protection and security for policyholders. • Sector & Segment Growth: Demonstrated outperformance across all core life insurance segments—regular business, group life, and single premium—while leveraging the broader JXG financial services ecosystem. • Industry Recognition: Named among Sri Lanka’s 50 Best Workplaces™ for 2026 by Great Place To Work® and recognized in Brand Finance’s Sri Lanka 100 Most Valuable Brands.

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Economic News

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📈 Sri Lanka Banks Record Slower Lending Growth in Q2 2026 Amid Tight Conditions

Sri Lanka’s banking sector saw a slower increase in willingness to lend during Q2 2026 following policy rate tightening in May, according to the Central Bank's Credit Supply Survey. • Overall Sector Trends • Willingness to lend increased across retail, corporate, SMEs, and State-Owned Enterprises (SOEs), but at a slower pace than Q1. • Lending appetite is expected to slow further in Q3 due to anticipated inflation, rising operating costs, exchange rate volatility, and geopolitical risks. • Lending appetite towards SOEs is projected to decline in Q3. • Loan Demand • Moderated growth in loan demand across all four sectors in Q2, driven by working capital needs, short-term loans, and investment revival. • SOE demand grew on financing for strategic infrastructure and renewable energy projects. • Demand is expected to rise across all sectors in Q3. • Asset Quality & Approvals • Overall Non-Performing Loans (NPLs) declined in Q2 due to retail sector improvements. • NPLs rose in corporate, SME, and SOE sectors due to exchange rate depreciation, Middle East crisis shocks, and cost pressures. • Banks expect NPLs to fall across all sectors in Q3 via debt recoveries and restructuring. • Rejection rates dropped for corporate and SOE loans due to higher-quality proposals, but rose for retail and SMEs amid stricter risk criteria.

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📈 Sri Lanka PMI Signals Accelerated Growth in July 2026

• Overall Expansion: Both manufacturing and services sectors expanded at a faster pace in July 2026, driven by higher demand and strong business activity. • Manufacturing PMI: Rose to 55.0 in July from 53.0 in June. Growth was anchored by the food & beverage sub-sector, pushing New Orders up to 55.9 (from 50.0) and Production to 54.5 (from 52.0). Employment and stock purchases expanded, though delivery times lengthened due to persistent supply-chain pressures. • Services PMI: Surged to 61.4 in July compared to 58.5 in June. Key growth drivers included transportation, financial services, and professional services. Employment increased amid higher recruitment and lower resignations, while work backlogs accumulated. • Sector Outlook: Business sentiment for the next quarter remains positive, supported by expected economic recovery and anticipated tourist arrivals for the Kandy Esala Perahera. However, both sectors maintain caution over ongoing global economic uncertainties.

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📈 Sri Lanka Signals Strong Recovery & Growth to Investors

• Macro & Monetary Outlook: Inflation hit 7.3% in July due to energy price adjustments, but is projected to normalize toward the 5% target by early next year if oil remains near $80/barrel. A 100 bps rate hike in May and import surcharges stabilized the LKR, enabling gradual currency appreciation. • Economic Growth Trajectory: Real GDP grew around 5% over three consecutive years post-crisis. A moderate slowdown to 4–5% is expected in H2 2026, with medium-term growth projected to return to a baseline ~5% pace. • IMF Program & Policy Reforms: The IMF's EFF 4th and 5th reviews were completed in Q1 2026. The next review is slated for Nov/Dec, with full program completion projected by H2 2027. • Capital Market Highlights: Speaking at investment forums in Sydney and Melbourne, officials highlighted Australia as a top-10 foreign capital source. Sri Lanka’s ASPI surged 360% since May 2020, offering a Asia-low P/E ratio of 11.20x to attract diaspora and institutional capital.

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📈 SL Economic Confidence Index Drops to Negative Territory in July 2026 Poll

• Economic Confidence Index: Slipped back into negative territory at -8 in July 2026 (down from a positive trajectory post-February 2025 and compared to -39 in mid-2024). • Government Approval: Moderated to 49.83% (from a post-election high of 65% in Feb 2026), while disapproval rose sharply to 31.40% (up from ~15%). • Economic Outlook: • Getting Better: Dropped to 41.63% (down from 64%). • Getting Worse: Increased to 40.29% (up from ~15%). • State of the Economy: • Poor: Over half at 55.59% (up from a minority in the previous round). • Good/Excellent: Declined to 38.00%. • Survey Methodology: Conducted by Verité Research with Vanguard Survey (Pvt) Ltd between July 11–30, 2026, sampling 2,013 adults nationally (margin of error: ±2.21%).

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📈 Debate Over CBSL's 5% Inflation Target & Market Credibility

• Macroeconomic Policy & Accountability: Economists at a Sri Lanka – Korea Business Council panel debated the credibility of the Central Bank of Sri Lanka (CBSL). Dr. Nishan de Mel noted CBSL missed its 5% inflation target by >200 bps for eight consecutive quarters, warning that loss of market trust elevates real interest rates, increasing business borrowing costs and threatening debt sustainability. • Supply Factors vs. Demand Management: Advocata Chairman Murtaza Jafferjee emphasized that Sri Lanka's inflation is heavily driven by supply-side shocks, specifically food and energy prices, limiting the immediate effectiveness of traditional demand-side monetary policy. • Key Economic Metrics: While GDP growth and current account balances have outperformed baseline IMF projections, nominal yields on Government securities remain ~300 bps above debt sustainability model assumptions amid lower-than-projected inflation. • Policy Recommendations: Experts called for improved Parliamentary oversight, stronger independent domestic analysis, and dynamic policy adjustments as economic facts change.

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Demystifying Central Banking: Legacy of Outreach 📈

• Central Banking Literacy: The Central Bank of Sri Lanka (CBSL) faces ongoing public criticism due to communication gaps, leaving ordinary citizens disconnected from monetary policy impacts on household budgets and savings. • Historical Precedents: Outreach efforts trace back to 1978 under Governor Rasaputra via Satahana (Sinhala) and News Survey (English), followed by Governor A. S. Jayawardena’s revival of Darshana in 1998, though both initiatives suffered eventual institutional drift into dense academic research. • Child-Centric Education: Ex-central banker Darshana Narampanawa pioneered a 10-story children's series and cartoon comic book. These simplified complex topics—including commercial banking, savings/thrift, foreign exchange markets, and protection against financial fraud—making macroeconomic concepts accessible to all ages. • 75th Anniversary Milestone: Narampanawa designed the 2025 coffee table book "The Unshakeable Lighthouse," using historical imagery and narrative to document 75 years of CBSL's institutional resilience.

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📈 CBSL Releases Second Monetary Policy Report for 2026

• Overview: The Central Bank of Sri Lanka (CBSL) published its biannual Monetary Policy Report for August 2026 under the CBSL Act No. 16 of 2023, providing economic outlooks on inflation, growth, and policy rationale. • Inflation & Policy Stance: Headline inflation accelerated sharply and is projected to stay elevated in the short term before stabilizing near the 5% target. CBSL tightened monetary policy in May 2026 to control price pressures and anchor expectations. • Credit & External Sector: Growth in private sector credit is expected to moderate in response to May's tightening measures. Meanwhile, the external sector maintains resilience despite global spillover risks from the Middle East conflict. • Growth Outlook & Risks: The national economic growth trajectory remains broadly stable, though geopolitical tensions and weather-related disruptions pose potential uncertainties.

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📈 Sri Lanka Economic & Investment Summit 2026 to Focus on Next Phase of Growth & Reform

The Ceylon Chamber of Commerce will host the Sri Lanka Economic & Investment Summit (SLEIS 2026) on 12-13 October 2026 at Shangri-La Colombo. The event aims to transition the national focus from economic stabilization to long-term competitiveness, investment, and sustainable growth. Key Highlights & Focus Areas: • Core Theme: "Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy". • Featured Session: "Building the Next Economy: Policy, Technology and Infrastructure for Growth" will examine how to bridge the gap between policy formulation and practical execution. • Key Sectors & Drivers: Emphasis on driving national productivity through technology, digital economy, innovation, and strategic infrastructure development. • Key Speakers: Includes Prof. Gomika Udugamasuriya (Senior Advisor on Science & Technology), Dr. Hans Wijayasuriya (Chief Advisor on Digital Economy), and Dr. Parakrama Dissanayake (Chairman, Sri Lanka Ports Authority). • Strategic Objectives: Identify critical reforms to attract global investment, strengthen trade connectivity, and build resilience against international economic shifts. _Registrations are currently open for business leaders, investors, and policymakers._

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📈 Sri Lanka Eyes 'B' Rating Upgrade Amid Strong Credit & Growth Momentum

• Macro Overview: Sri Lanka is moving closer to a sovereign credit rating upgrade to 'B' (target 'B-' by early 2027 from 'CCC+') driven by 11 consecutive quarters of expansion, fiscal discipline, and progress under the IMF program. • GDP Growth: • 2026 GDP Growth Forecast: 4% – 4.5%. • 2Q 2026 Growth Projection: 4% – 5% YoY, led by broad-based domestic expansion. • Private Sector Credit: • 2026 Forecast: Accelerating to ~22% YoY growth. • June Disbursements: Rs. 245 Bn (+27.4% YoY), signaling strong domestic demand without overheating due to moderated govt borrowing. • Fiscal & Debt Dynamics: • Public Debt: Down from 126% of GDP in 2022 to 91.6% in 2025, with further reductions in 2026 outperforming IMF targets. • Market Access: 'B' rating expected to unlock international capital markets, helping raise US$ 1.5 Bn to refinance maturing external debt.

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📈 Sri Lanka FX & Economic Outlook: LKR Stability and 4th Straight Current Account Surplus Projected for 2026

Sri Lanka is projected to register its fourth consecutive current account surplus in 2026, supported by strong worker remittances, CBSL foreign exchange purchases, and multilateral inflows. • Overall Figures: Current account surplus forecast at US$ 250–300 Mn (~0.3% of GDP). • Foreign Exchange & Currency: LKR expected to remain stable at Rs. 330–335/USD. CBSL YTD net purchases near US$ 1 Bn, complemented by upcoming ADB (US$ 200 Mn) and World Bank (US$ 150 Mn) inflows. • Remittances: Projected to grow 12% YoY to a record US$ 9 Bn, providing critical support to national liquidity. • Tourism & Exports: Tourism arrivals expected at 2.3 Mn (matching 2025 levels), though earnings are forecast down 10% YoY to US$ 2.9 Bn due to lower average spending and a changing visitor mix. Moderating oil prices are expected to offset softer overall exports.

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CBSL Signals Rate Hold at 8.75% as Inflation Peaks 📈

• Monetary Stance: Central Bank Governor P. Nandalal Weerasinghe announced no additional interest rate hikes are needed this year following May's unexpected 100 bps increase to 8.75%. Policy will remain steady provided inflation aligns with forecasts. • Inflation Outlook: Key inflation reached 7.3% YoY in July (a 3-year high), driven by global energy & fuel shocks from the Middle East conflict. Rates are expected to peak near 8% in November before returning to the 5% target in H1 next year. • Economic Growth: CBSL projects GDP growth of 4%-5% for 2026, while the IMF predicts 3% alongside releasing $695 Mn under its $2.9 Bn bailout program. The economy expanded 5% YoY in 2024 and 2025. • Reserves & External Sector: Gross foreign exchange reserves currently stand at ~$6.6 Bn, with a target to reach ~$8 Bn by year-end despite oil import cost pressures. Fuel prices rose over 35% to offset external shocks.

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📈 World Bank Approves US$ 100 Mn Facility for North-East Development

• Funding Overview: The Cabinet has approved entering into financial agreements for a US$ 100 Mn credit facility from the International Development Association (IDA) of the World Bank Group. • Broader Assistance: The funding forms part of an expected US$ 1 Bn IDA financial assistance package for Sri Lanka covering the 2026–2031 period. • Project Scope: Dedicated to the Northern and Eastern Provinces Integrated Regional Development Project, following concluded negotiations initiated after initial cabinet approval on 9 February 2026. • Key Sectors & Support: Designed to strengthen high-potential sectors and empower MSMEs (micro, small, and medium-scale enterprises) across both provinces. • Economic Focus: Aimed at accelerating regional economic growth, boosting provincial competitiveness, and enhancing regional connectivity and livelihoods. • Key Driver: The proposal was submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning, and Economic Development.

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Sustainability, ESG & Corporate Responsibility

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Govt Steps Up Actions Over Forced Labour Risks in Southern Tea Sector ⚠️

• Overview: The Labour Ministry told the Committee on Public Finance (CoPF) that awareness and enforcement measures have been launched to address forced labour risks in the Southern Province's tea smallholder sector. • Background: Action follows an Amnesty International report highlighting forced labour concerns. Under Sri Lanka’s Penal Code, forced labour is a criminal offence. • Capacity Building: Supported by the ILO, the initiative trained 30 master trainers, who subsequently trained ~250 officials from the Police, Department of Labour, and Foreign Affairs Ministry. • Key Risk Indicators: Practices identified include withholding certificates/IDs, delayed or partial wage payments, and restricting job mobility—creating conditions where workers feel trapped to recover unpaid wages. • Market & Trade Impact: Officials emphasized supply-chain compliance to safeguard export access, particularly to the US. Labor-intensive agricultural sectors like tea face higher scrutiny compared to automated manufacturing like apparel & textiles. • Mechanism: Government is institutionalizing customs enforcement and export/import declaration verification under the Director General of Commerce to satisfy international compliance standards.

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🌿 Biodiversity Action Forum 2026: Driving Sri Lanka's Nature-Positive Economy

Biodiversity Sri Lanka will host the Biodiversity Action Forum 2026 on August 25 at Shangri-La Colombo. Moving beyond technical sessions, the event aims to translate ecosystem health into a strategic business asset for long-term economic growth, supply chain resilience, and private sector competitiveness. • Strategic Focus & Key Highlights: - Positions biodiversity as a key driver for investment, productivity, and risk mitigation across agriculture, tourism, finance, manufacturing, and exports. - Keynote speeches by Dr. Saurabh Kumar (CII-ITC) and Rohan Pethiyagoda on integrating nature-positive strategies into corporate governance. • Three Core Business Conversations: - The Next Wave of Blue Growth: Harnessing marine resources through sustainable investments, blue finance, and coastal resource management. - Safeguarding the Central Highlands: Protecting montane ecosystems as critical national infrastructure, featuring leaders from plantation management (Hayleys Plantations) and ADB. - Investing, Disclosing & Competing: ESG reporting, nature-positive finance, and corporate governance with insights from the Central Bank of Sri Lanka, KPMG, and Talawakelle Tea Estates PLC. • Actionable Outcomes: - Formulating the Biodiversity Action Agenda 2026 in partnership with Verité Research to establish measurable, joint private-sector initiatives over the next 12 months. - Sponsored by major economic players including Dilmah Ceylon Tea, Hatton National Bank, Cleantech, CDB Finance, DIMO, and Hayleys Plantations.

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🏨 Browns Hotels & Resorts Launches Free Learning Academy to Boost Tourism Workforce

Browns Hotels and Resorts (BHR) has launched the Browns Hotels and Resorts Learning Academy at The Eden Beruwala to address skill shortages and upskill youth in the tourism & hospitality sector. • Program Overview: The academy debuted on 14 August 2026 with an inaugural 60-day (360-hour) TVEC-approved NVQ Level 03 – Hotel Operation Multitasker Programme. • Target & Investment: Offered at no cost to selected local youth, combining structured classroom learning with practical exposure at BHR's flagship 5-star property. • Career Pathways: Successful graduates gain opportunities for employment consideration across BHR’s 15 hotel properties nationwide, driving regional youth employment and capacity building for Sri Lanka's growing tourism industry.

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📈 APAC Leaders Convene in Colombo for Sustainable Business Growth

• Event Overview Over 200 business leaders, policymakers, UN representatives, and sustainability experts gathered in Colombo on August 11–12 for Forward Faster Now APAC 2026. Hosted by Global Compact Network Sri Lanka and organized by the UN Global Compact APAC Hub in collaboration with 14 country networks across 16 regional nations, the event focused on driving private sector leadership for sustainable and inclusive economic growth. • Core Focus Areas To combat climate risks, geopolitical uncertainty, and technological disruption, participants explored practical approaches in key focus areas: • Climate action & water resilience • Sustainable finance & circular economy solutions • Digital innovation & governance & accountability • Gender equality & business & human rights • Strategic Collaboration & Implementation The forum emphasized that cross-sector partnerships—connecting businesses, governments, investors, and civil society—are vital to achieving Sustainable Development Goals (SDGs), building resilient supply chains, and boosting long-term regional competitiveness. • Key Side Initiatives An in-person session of the APAC Chief Sustainability Officers Peer Learning Group convened 20 CSOs from prominent regional firms. The year-long initiative aims to break down functional silos and embed sustainability directly into core business operations.

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📈 UNGC Chief: Responsible Business Key to Sri Lanka's Long-Term Economic Recovery

• Strategic Focus & Governance: UN Assistant Secretary-General and UN Global Compact (UNGC) CEO Sanda Ojiambo emphasized that ethical leadership, anti-corruption, and strong ESG governance are essential for long-term business resilience, attracting international capital, and ensuring fair market competition in Sri Lanka. • SME & Supply Chain Integration: Small and Medium Enterprises (SMEs)—which make up 50% of UNGC participants—can enhance export readiness, access green loans, and qualify for global supply chains (especially in Europe) by integrating early sustainability credentials. • Regional Competitiveness: Sri Lankan businesses across textiles, manufacturing, and consumer goods are already well-positioned in regional and global markets. Adherence to strict environmental, quality, and labor standards strengthens export competitiveness beyond domestic needs. • Institutional Support & Coalitions: The newly launched Responsible Business Coalition with the Colombo Stock Exchange aims to connect private sector initiatives with national economic recovery plans, while leveraging Sri Lanka’s economic agility to adapt quickly to global shocks.

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CSE and UN Global Compact Launch Responsible Business Coalition in Sri Lanka 📈

• Key Highlights: The Colombo Stock Exchange (CSE) partnered with the UN Global Compact to host a "Ring the Bell for Responsible Business" ceremony and officially launch the Responsible Business Coalition. • Core Objective: Embed sustainability, corporate governance, and the UN Global Compact’s Ten Principles directly into executive leadership, boardrooms, and capital market frameworks. • Strategic Impact: Emphasizes the role of capital markets in driving sustainable finance, transparent corporate governance, and long-term investor confidence to align with global Sustainable Development Goals (SDGs). • Coalition Leadership: Convened by UN Global Compact Network Sri Lanka, founding members include the Sri Lanka Bankers' Association – Sustainable Banking Initiative (SLBA-SBI), Sri Lanka Institute of Directors (SLID), and the Centre for Smart Future, with support from the CSE and Ceylon Chamber of Commerce.

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Sri Lanka Proposes 30-Year National Master Plan to Address Escalating Human-Elephant Conflict 🐘

• Escalating Economic & Human Impact: Human-Elephant Conflict (HEC) poses significant social and economic costs, recording 488 elephant deaths and 154 human fatalities in 2023. Over 70% of wild elephants live outside protected areas, impacting rural agriculture and livelihoods. • Landscape Stewardship & EMRs: Shifting from reactive measures (fences, translocations) to Elephant Managed Ranges (EMRs) to integrate agriculture and seasonal habitats, driving direct economic benefits and local community stewardship. • Presidential Initiative & Master Plan: Proposes a multi-sectoral Presidential Initiative and a 30-year National Elephant Conservation Master Plan (2027–2057) to integrate land-use planning across agriculture, tourism, and rural development. • Economic & Ecological Co-Benefits: Strategic coexistence aims to safeguard watersheds, boost eco-tourism, strengthen food security, and leverage modern tech (AI, predictive analytics) alongside biodiversity finance and carbon markets.

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🇱🇰 Sri Lankan Banking Sector: Seylan Bank Supports Annual Aadi Vel Festival

• Event Overview: The annual Aadi Vel (Addivel) Chariot Festival was held recently, with the central chariot traveling along Galle Road to reach the New Kathiresan Temple in Bambalapitiya. • Corporate Engagement: The Vel Chariots stopped at the Seylan Bank Head Office, where the procession was received by Seylan Management and staff. • Community Outreach: Seylan Bank staff participated in special religious poojas to receive blessings and distributed refreshments and sweets to attending devotees. • Strategic Focus: Demonstrates corporate commitment to cultural inclusivity, community engagement, and public goodwill in key urban commercial centers.

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🇱🇰 Sri Lanka Reaches 1M Landmine Clearance Milestone

• Milestone & Key Statistics • 1 million landmines cleared across Sri Lanka over the past 17 years. • Annual casualties dropped dramatically from ~250 down to 3 in 2024. • Enabled ~1 million displaced people to return safely to their homes. • Mines Advisory Group (MAG) has made ~103 km² of land safe across 7 districts since 2002. • High-Profile Visit • MAG Ambassador Rosamund Pike is visiting northern minefields in Mannar and Mullaitivu. • Engagements include meeting local communities, deminers, Prime Minister Dr. Harini Amarasuriya, and Mine Action Centre officials. • Socio-Economic Impact • Land clearance accelerates post-conflict recovery by unlocking safe land for farming, housing, and infrastructure development to support sustainable local livelihoods.

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🌱 BOI Urges Daily Commitment to Environmental Sustainability and Quality Production

• Core Focus: The Board of Investment of Sri Lanka (BOI) called on its staff and approved enterprises to treat environmental protection as a continuous daily discipline rather than a periodic observance. • FDI & Sustainability Standards: Director General Dr. Sulakshana Jayawardena emphasized that as the apex body driving foreign direct investment (FDI), the BOI must ensure enterprises operate with credible, evidence-based practices rather than verbal assurances. • Key Execution Areas: - Demonstrating verifiable progress in Good Manufacturing Practices (GMP) and sustainable supply chain management. - Reinforcing the role of the BOI Department of Environment in implementation. - Promoting sustainable land use across the investment & manufacturing enterprise network. - Integrating traditional knowledge into current production and environmental strategies.

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🌱 Delft Island to be Developed as Sri Lanka’s First Zero Emission Eco-Tourism Destination

The Government of Sri Lanka has initiated plans to transform Delft Island into the country's flagship Zero Emission destination, focusing on sustainability, environmental conservation, and heritage preservation. • Strategic Vision & Objective: - Aims to unlock the island's untapped tourism potential for both domestic and international visitors. - Positions eco-tourism and sustainable tourism as model frameworks to promote renewable solutions nationwide. • Priority Infrastructure & Community Focus: - Infrastructure Upgrades: Essential improvements to water supply, road networks, transportation, and island accessibility. - Community Empowerment: Enhancing knowledge and hospitality skills among local residents to support community-based livelihoods. - Asset Preservation: Protecting unique Dutch-era ruins, archaeological landmarks, and wild horses while establishing eco-friendly practices. • Stakeholder Engagement: - Led by Deputy Minister of Tourism Prof. Ruwan Ranasinghe alongside Jaffna District representatives, local authorities, government officials, and the local community. - Supported by the Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB).

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🎨 People’s Bank Unveils ‘A Gallery in the Bank’ Documentary

• Documentary Screening: People’s Bank hosted a special screening of ‘A Gallery in the Bank – Priceless Treasures of People’s Bank’ at People’s Tower in Colombo 02, showcasing 12 rare, culturally significant artworks from its collection. • Artistic Legacy: The production highlights masterpieces created by celebrated Sri Lankan artists, including George Keyt, Pushpananda Weerasinghe, Senaka Senanayake, Wimal de Silva, Jayantha Premachandra, Nadine David, Yasantha Boange, B. Wimalaratne, Richard Gabriel, Upasiri, and Ismeth Raheem. • Honoring Masters: Special tokens of appreciation were presented to living featured artists Ismeth Raheem, Nadine David, Senaka Senanayake, and B. Wimalaratne. Notably, B. Wimalaratne is the only featured artist who also served as a People’s Bank employee. • Corporate Role: The initiative underscores the institution's commitment to arts & cultural heritage preservation alongside its primary sector of banking & financial services. • Public Availability: Researched and presented by Angeline Ondaatjie and directed by Sulochana Peiris, the documentary is now publicly accessible on People’s Bank’s official Facebook page and YouTube channel.

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Politics & Government Impact

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Ex-JVP Leader Backs NPP Anti-Corruption Drive but Warns of Governance Gaps 📈

Former JVP General Secretary Dr. Lionel Bopage has endorsed the Government’s anti-corruption efforts while raising concerns over political spectacles, bureaucratic delays, and economic strategy. • Governance & Anti-Corruption Backs arrests of corrupt individuals but warns against turning investigations into political spectacles or public ridicule. Notes arrests are not political revenge, but cautions that premature announcements undermine judicial confidence. Highlights administrative shortcomings due to elected officials lacking ground-level experience, calling for advisory mechanisms and civil service reforms. • Economic Priorities & Reforms Urges shifting away from heavy dependence on exports like apparel & textiles, tea, rubber, and coconut, alongside tourism and remittances, which are vulnerable to global shocks. Recommends prioritizing domestic economic foundations—food, water, energy, and local agriculture—before expanding exports. Encourages investment in renewable energy (solar, wind, ocean) while opposing proposals for nuclear power. • Foreign Relations & Policy Recommends a balanced geopolitical stance among the US, India, and China to protect national sovereignty and maintain economic stability. Advises consistent execution of official language policies to ensure equal rights and prevent communal friction.

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🏗️ Govt. Eyes Defence Force Labour to Address Construction Sector Shortages

The Sri Lankan government is evaluating a plan to utilize defence personnel for labour contributions in the local construction sector. The proposal was discussed at the Defence Ministry’s 2027 pre-Budget meeting, chaired by President Anura Kumara Dissanayake. • Construction Sector Challenges: • Persistent skilled labour shortages, rising trade worker competition, and elevated employment costs. • Higher procurement costs driven by rising prices of imported construction materials and global commodity trends. • Defence R&D & Ops Rationalization: • President Dissanayake instructed merging separate Army, Navy, and Air Force R&D units into a single national centre for optimal efficiency. • Plans prioritize rapid technology adoption, advanced equipment procurement, and expanded budget allocations for overseas skill training. • Operations and funding reviewed for General Sir John Kotelawala Defence University Hospital and the commencement of Neville Fernando Hospital. • Defence Budget Context: • The Defence Ministry was allocated Rs. 455 Bn in the gazetted 2026 Appropriation Bill (Rs. 395 Bn recurrent; Rs. 60 Bn capital). • For comparison, Finance received Rs. 634.8 Bn, Health & Mass Media Rs. 555 Bn, and Education Rs. 301 Bn. • Verité Research Insights: Sector spending on diets and uniforms is projected to drop 12.7% in 2026, but recorded a 299% surge between 2022 and 2026 (vs. ~80% cumulative inflation).

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⚖️ Debate Resurfaces Over Moratorium on Death Penalty in Sri Lanka

• Key Legal & Policy Developments - High-profile death sentences issued to former IGP Pujith Jayasundara and former Defence Secretary Hemasiri Fernando over Easter Sunday criminal negligence have reopened national debate. - A government committee has reportedly recommended extending the mandatory capital punishment framework to drug-related offences. - Modern legal and international trends oppose capital punishment, noting over 110 countries have legally abolished the practice. • Socio-Economic & Governance Implications - Enforcing executions risks global human rights standing, which critical Sri Lankan export sectors like apparel & textiles rely on for preferential trade access (e.g., EU GSP+). - Critics highlight risk of irreversible judicial errors within imperfect state criminal justice institutions. - Sri Lanka has maintained a 50-year de facto moratorium, executing no prisoners since 1976. • Alternative Recommendations - Focus proposed on improving detection, prosecution speed, and effective policing rather than severe sentencing. - Calls to permanently end state-sanctioned executions in favor of comprehensive judicial and prison rehabilitation reforms.

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⚖️ UN Expert & Opposition Raise Concerns Over 22nd Amendment

• UN Communication: UN Special Rapporteur Margaret Satterthwaite warned the Government that extending retirement ages for sitting Superior Court judges risks violating international standards on judicial independence and fair trial rights. • Proposed Statutory Changes: The 22nd Amendment increases retirement ages for Supreme Court judges (65 to 67 years) and Court of Appeal judges (63 to 65 years). • Opposition Concerns: Opposition Leader Sajith Premadasa echoed warnings from the legal fraternity and Bar Association of Sri Lanka (BASL), questioning why extensions apply to sitting judges rather than future appointments. • Key Institutional Risks: • Executive/legislative interference perception due to lack of transitional safeguards. • Potential conflicts of interest if judges benefiting from extensions rule on the amendment's constitutionality. • Failure to address the backlog of 1.1 million pending cases. • Next Steps: Opposition calls for public explanation in Sinhala, Tamil, and English, alongside a required referendum prior to enactment. Learn more about these proposed reforms in this [Ada Derana coverage of the 22nd Amendment](https://www.youtube.com/watch?v=LxsyhH9tG0s&vl=te), which provides relevant context on the gazetted bill regarding judges' retirement ages.

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🇱🇰 Eric Meyer Sworn In as New US Ambassador to Sri Lanka

• Diplomatic Relations: Eric Meyer has officially been sworn in as the new United States Ambassador to Sri Lanka. • Economic Context: The appointment comes at a crucial period for bilateral trade, investment, and strategic economic cooperation between the US and Sri Lanka. • Note: Further specific details regarding trade agreements or policy statements are currently unavailable due to source data limitations.

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🏛️ Cabinet Approves Rs. 635 Mn Correctional Centre for Drug Rehabilitation in Kekirawa

• Project Scope: The Cabinet of Ministers has approved a Rs. 635 million project to construct a dedicated residential treatment and rehabilitation facility on 1.33 hectares of land in Kekirawa. • Core Objective: The centre addresses critical infrastructure gaps in the current community-based corrections system, specifically targeting court-referred offenders suffering from severe drug and alcohol addiction. • Legal & Social Framework: Issued under the Community-Based Corrections Act, No. 46 of 1999, the initiative aims to rehabilitate minor offenders, foster social reintegration, and enhance their long-term social and economic well-being. • Key Proponent: The proposal was submitted by Minister of Justice and National Integration, Harshana Nanayakkara.

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🏛️ Cabinet Approves Rs. 232M for Post-Cyclone Religious Site Restoration

The Cabinet of Ministers has approved Rs. 232.07 million in available funds to restore 144 additional religious sites damaged by Cyclone Ditwah, supporting community and cultural recovery. • Overall Impact: A total of 1,328 places of worship across multiple faiths were damaged by disasters associated with Cyclone Ditwah. • Breakdown of Affected Sites: • 758 Buddhist temples • 272 Hindu religious places • 199 Muslim religious places • 99 Christian religious places • Progress & Funding Breakdown: • Renovation is already underway at 256 sites using Rs. 929.69 million. • Initial funding sources include the Buddha Sasana Fund, Central Cultural Fund, and Anagarika Dharmapala Foundation. • Total allocations include Rs. 329.62 million previously approved via Cabinet decisions on 27 April 2026 and 15 June 2026. • Government Action: The proposal was submitted by Buddhasasana, Religious and Cultural Affairs Minister Prof. Hiniduma Sunil Senevi to ensure damaged locations can resume active religious and cultural functions.

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📈 Reflections on Fidel Castro’s Legacy

• Historical Impact & Diplomacy: Commemorating Fidel Castro’s political journey, highlighting his role in global diplomacy, anti-debt advocacy, and mediation in international conflicts. • Economic Context: Emphasizes Castro's early global campaign against foreign debt burdens, a topic highly relevant to Sri Lanka's current economic debt landscape. • Strategic & Soft Power: Analysis of Cuban leadership strategies, balancing international relations, and maintaining national sovereignty amidst global political pressures. • Ideological Perspectives: Explores the convergence of social vision, ethics, and political strategy, drawing parallels between historical liberation movements and global governance. _Note: Content reflects a political commentary and historical retrospective; contains no specific Sri Lankan business, market, or macroeconomic data._

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📈 Govt. Plans Rs. 42 Bn Investment in Vocational Education (2027–2031)

• Overall Investment: The Government will allocate nearly Rs. 42 Bn between 2027 and 2031 to improve vocational education across Sri Lanka. • VTA Allocation: Rs. 4 Bn is earmarked specifically to strengthen the Vocational Training Authority (VTA) and transform it into a centre of excellence in every province. • Key Reforms: Focus areas include introducing courses aligned with global demand, updating curricula, filling staff vacancies, improving student facilities, and broadening pathways beyond exam-based education to support workforce development. • Graduate Output: A total of 717 students across 15 courses received diplomas at the VTA’s 5th Diploma Convocation in Colombo.

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📈 Govt. Eyes Incentives for SME Equity Investors & Tax Relief for Venture Capital

• Key Policy Initiative: The Government is planning to incentivize equity investors in SMEs and introduce tax relief for venture capital companies, aimed at stimulating early-stage funding and enterprise growth. • 2027 Budget Focus: Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe announced that proposed measures—likely to be unveiled in the upcoming 2027 Budget—will focus on enabling angel investments and boosting startups alongside broader SMEs. • Key Provisions: • Proposal to introduce a tax allowance for equity investments in SMEs. • Addressing and resolving double taxation issues currently affecting venture capital investments in startups. • Event Context: Announced at the National SME Forum Scale Up 2.0, organized by The Ceylon Chamber of Commerce’s Centre for SMEs in Colombo.

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🚍 Cabinet Approves Rs. 800 Mn Equity Injection for Lanka Metro Transit

The Cabinet of Ministers has approved a major capital allocation to Lanka Metro Transit Ltd. to scale up modern public transport operations across Colombo and surrounding areas, following a successful pilot phase. • Investment & Equity - Approved Rs. 800 Mn equity capital for critical infrastructure development. - Approved an additional Rs. 267.5 Mn equity capital reserved for 2027 operations. • Fleet & Operations Expansion - Incorporated in October 2025 under the SLTB, the company began with a 10-bus pilot project funded by the Clean Sri Lanka Program. - Fleet scaling up significantly with 112 new low-floor buses launching in September 2026. • Infrastructure Development - Construction of a fully equipped central workshop. - Development of modern bus depots at Thalangama, Kadawatha, Ratmalana, and Homagama. - Improvements to internal roads and passenger bus stands to modernize urban public transit accessibility and operational standards.

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📈 Prisons, Power and the Rule of Law: Ensuring Governance and Human Rights

• Core Theme: Correctional institutions must prioritize lawful custody, rehabilitation, and transparency, avoiding use as instruments of political repression or retaliation. • Historical Lessons: Past global crises—including incidents in Peru, Syria, the Soviet Union, the US, Spain, and former East Pakistan—demonstrate that political interference, overcrowding, and corruption severely undermine human rights and erode public trust in justice systems. • Governance Safeguards: Independent oversight, professional staff, transparent investigations into deaths in custody, and strict adherence to international benchmarks like the UN Nelson Mandela Rules are essential to protect human dignity and democratic integrity.

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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.

Regulatory & Policy News

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📈 SEC Act Framework: Strict Measures Against Market Manipulation

• Market Rigging & False Trading (Sec 128): Focuses on effect over intent. Trading that creates a false appearance of volume or price without changing beneficial ownership is prohibited. Courts consider order timing as key evidence; statutory defense shifts the burden of proof to the accused. • Price Manipulation & Intermediaries (Sec 129): Prohibits artificial price-setting (raising, lowering, or stabilizing) through direct trading, layered structures, or proxies. • Misleading Information & Analyst Duty (Sec 130-131): Criminalizes reckless or false statements, forecasts, and concealment of material facts. Capital market professionals, company directors, and research analysts face higher compliance standards to substantiate advice. • Broad Anti-Fraud Provisions (Sec 132): Captures evolving manipulative schemes and deceptive devices to maintain investor confidence in the Colombo Stock Exchange (CSE). • Regulatory & Compliance Oversight: Market manipulation offences act as financial red flags for the Central Bank’s Financial Intelligence Unit (FIU). Under IOSCO principles, stockbroking firms and investment advisors must maintain robust internal controls, risk profiling, and independent research. _Provisional analysis based on SEC Act regulatory provisions._

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⚖️ 4 Bank Officials Remanded Over Alleged $ 1 Bn Import Payments Fraud

Four officials from four private commercial banks have been remanded until 20 August following arrests by the FCID in a probe involving nearly $ 1 billion illegally transferred overseas under the guise of fake imports since 2023. • Key Suspects & Alleged Involvement: • Branch Manager: Linked to transfers of ~$ 5.5 million. • Sales Promotions Manager: Facilitated 25 telegraphic transfers worth $ 647,207. • Executive Officer 1: Facilitated 1,067 transfers totalling $ 24.6 million. • Executive Officer 2: Facilitated 943 transfers amounting to ~$ 32 million. • Modus Operandi & CBSL Violations: • Used forged Customs reports and fake import documents in violation of Central Bank of Sri Lanka (CBSL) regulations. • Suspects allegedly received weekly bribes ranging from Rs. 30,000 to Rs. 100,000, with one receiving Rs. 1 million at once. • Broader Investigation Context: • Covers 89 registered companies that remitted over Rs. 190 billion overseas without actual goods entering the country. • Probe into 36 shell companies revealed Rs. 75 billion transferred via 10,151 transactions. • FCID is investigating wider money laundering links to drug trafficking, including Rs. 6 million remitted via shell accounts. Primary suspect Jiffry Mohamed remains in custody until 20 August.

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🚢 Global Shipping Industry Rejects Proposed Strait of Hormuz Transit Tolls

Major international shipping bodies have jointly petitioned UN Secretary-General António Guterres and IMO Secretary-General Arsenio Dominguez to oppose proposals for compulsory transit tolls or service fees in the strategic Strait of Hormuz. • Key Industry Position & Risks: • Legal Precedent: Charging compulsory transit fees sets a dangerous precedent that undermines UNCLOS principles governing international navigation rights. • Economic Pressure: Imposing extra operational costs on vessels navigating high-risk zones directly fuels global inflation, driving up energy prices and supply chain costs. • Seafarer Safety: Industry leaders emphasize that maritime safety and freedom of navigation must remain non-negotiable amid heightened security risks. • Signatories: • Jointly submitted by top international maritime organizations including the International Chamber of Shipping (ICS), BIMCO, World Shipping Council (WSC), Asian Shipowners Association (ASA), and INTERTANKO. • Impact on Sri Lanka's Economy: • Higher freight overheads and maritime transit fees pose significant risks to Sri Lanka's key export sectors—such as apparel & textiles, tea, and rubber—by eroding trade competitiveness. • Increased shipping costs directly spill over into higher import bills for essential commodities, petroleum, and raw materials, threatening domestic price stability and national supply chain resilience.

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📈 Deep Dive: Market Manipulation Rules & CSE Integrity

• Market Overview: Stock market capitalisation stood at 19.7% of nominal GDP in 2024, showing equities as a modest yet vital national financial component. Average stock market returns between 2023 and 2025 reached ~39%, providing key diversification alongside unit trusts and debentures. • Regulatory Framework: The Securities and Exchange Commission of Sri Lanka (SEC) Act No. 19 of 2021 mandates fair, orderly, and efficient market operations. Part V (Sections 128 to 132) explicitly criminalises market manipulation to build investor confidence and safeguard capital formation. • Forms of Market Manipulation: • Action-based: Transactions intended to distort prices/volumes. • Information-based: Disseminating false or misleading statements. • Trade-based: Excessive/coordinated trading to force price movements. • Enforcement & Compliance: The Act draws on regional precedents (Malaysia & Singapore). CSE Listing rules require immediate disclosures of price-sensitive events (mergers, board changes, major transactions) under Annexure 8A to enforce transparency and protect market integrity.

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🚗 Govt Extends 50% Vehicle Import Duty Surcharge to Year-End 📈

The Sri Lankan Government has officially extended the temporary 50% surcharge on Customs Import Duty for selected motor vehicle imports through 31 December 2026. • Scope & Coverage: Applies to both General and Preferential Customs Import Duties on selected passenger and goods vehicles, including petrol, diesel, hybrid, and electric vehicles. • Gazette Notification: Issued under Extraordinary Gazette No. 2501/88 (dated 13 August) by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development. • Exemptions & Conditions: - Vehicles with Letters of Credit (LCs) established on or before 15 May 2026 are generally exempt. - Surcharge will apply if LC details are subsequently amended (including vehicle count, VINs, descriptions, technical specs, or expiry dates). - Surcharge applies if the shipped-on-board date on the Bill of Lading or Airway Bill is after 15 November 2026.

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📢 IRD Postpones Mandatory Revised VAT Invoice Format to October 1

• Implementation Extension: The Department of Inland Revenue (IRD) has officially delayed the mandatory adoption of the revised Value Added Tax (VAT) invoice format. The new effective date is now October 01, 2026, pushed back from the original July 01, 2026 deadline. • Legal Authorization: Commissioner General of Inland Revenue Rukdevi Perpetua Himali Fernando issued Gazette Extraordinary No. 2500/106 on August 06, 2026, exercising powers under Section 20 of the Value Added Tax Act, No. 14 of 2002. • Specifications Unchanged: The directive amends the previous notice published in March 2026. All underlying requirements, formats, and technical specifications outlined in the original March gazette remain fully intact. • Business & Compliance Impact: The extension provides necessary lead time for VAT-registered businesses operating across key domestic sectors—including wholesale & retail trade, manufacturing, and services—to update their billing and accounting systems to comply with the revised format.

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Govt to Lease Underutilised Plantation Land to Returning Young Migrant Workers 📈

The Cabinet has approved a long-term leasing initiative to attract capital, skills, and foreign exchange contributions from overseas-employed Sri Lankans by making productive use of State lands. • Overall Allocation & Scope Total Land Earmarked: 247 hectares of underutilised State plantation land. Land Allocation Breakdown: • Sri Lanka State Plantations Corporation (SLSPC): 117 hectares • Janatha Estates Development Board (JEDB): 88 hectares • Elkaduwa Plantation Ltd: 42 hectares Individual Eligibility: 1 to 4 hectares per selected applicant. • Criteria for Applicants Target Group: Returning Sri Lankan foreign workers with 3+ years of overseas employment during the past 10 years, or current foreign workers employed abroad for 3+ years. Age Limit: Up to 50 years. Selection Method: Formal procurement process established by the Plantations and Community Infrastructure Ministry. • Eligible Investment Sectors Plantations & Agriculture Plantation-related Tourism Livestock Development Renewable Energy (Hydropower & Solar energy) Factory-based Manufacturing Freshwater Fisheries & innovative business ventures

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🐘 Call to Reconsider Proposed Animal Welfare Bill Over Impact on Heritage & Tourism

• Overview: Concerns have been raised regarding broad executive powers in the proposed Animal Welfare Bill to penalise and imprison elephant owners, which critics warn could discourage private ownership and temple custody of tamed elephants. • Sector Breakdown & Key Impacts: • Tourism: Administrative restrictions impacting traditional processions like the Esala Perahera could negatively affect Sri Lanka's culture and national tourism industry. • Agriculture: Disincentivising captive care risks worsening human-wildlife conflicts, adding pressure on local agriculture communities affected by crop damage. • Cultural Heritage: Elephants serve as vital cultural symbols in Sri Lanka, maintaining long-standing royal and religious traditions such as carrying the Sacred Tooth Relic during annual pageants. • Key Recommendations: Stakeholders urge the government to carefully review the legislation and establish balanced, practical guidelines for domesticated elephant management alongside measures against genuine animal cruelty.

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📈 Beneficial Ownership Rules Risk Uneven Playing Field for Investors

• Key Issue: Sri Lanka’s beneficial ownership disclosure regime under the Companies Act, No. 12 of 2025, creates practical hurdles and investment delays. • Administrative Conflict: While the Act places the legal obligation to disclose beneficial ownership on shareholders, prescribed declarations force Company Secretaries, Directors, and officers to independently verify and certify accuracy. • Impact on Investment: Complex ownership structures—such as overseas holding companies, trusts, and proxies—make independent verification difficult, leading some Company Secretaries to decline signing incorporation documents. • Liability Concerns: Company Secretaries face long-term personal exposure for certifying information outside their knowledge, risking an uneven playing field for incoming investors. • Proposed Solutions: Immediate regulatory amendments to the prescribed declaration are recommended to exempt Company Secretaries from verifying matters beyond their direct knowledge, avoiding prolonged incorporation delays.

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📈 Sri Lanka Faces Post-GSP+ Trade Challenge After Upper-Middle-Income Upgrade

• Overall Classification & Economic Context: Sri Lanka has regained upper-middle-income status, as recognized by the World Bank, marking macroeconomic stabilization since the 2022 economic collapse. However, maintaining this classification for 3 consecutive years will disqualify the nation from EU GSP+ tariff concessions under the current rules. • Key Sectors & Market Vulnerabilities: The EU remains Sri Lanka's single most critical export market. Duty-free GSP+ access is crucial to maintaining the competitiveness of key industries, particularly apparel & textiles, which risk exposure to higher tariffs against regional competitors. • Strategic Action Plan & Alternatives: • Task Force: The government must form a high-level task force comprising officials, trade experts, diplomats, and private sector leaders to formulate a contingency strategy. • Structural Competitiveness: Shift export strategy away from tariff reliance toward productivity, technology, quality, logistics, skill development, and sustainability. • Alternative Agreements: Formal diplomatic engagement must begin immediately to negotiate a comprehensive Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) with the EU. • Institutional Readiness: Strengthen key institutions, specifically the Department of Commerce and the Sri Lankan Embassy in Brussels, with specialized competence.

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Safeguarding Sri Lanka’s Trade Integrity via Certificates of Origin 📈

• Critical Trade Security: Certificates of Origin (CoOs) have become crucial compliance documents protecting Sri Lanka’s key export industries—including tea, apparel & textiles, spices, rubber, and fisheries—against transshipment fraud, trade sanctions, and anti-dumping measures. • Rules of Origin (RoO) Criteria: - Wholly Obtained: Applies to products 100% sourced locally (e.g., pure Ceylon tea or raw cinnamon). - Substantial Transformation: Requires imported raw materials to undergo major local processing through Change of Tariff Classification (CTC), Local Value Addition (LVA), or specific process criteria. • Preferential vs. Non-Preferential CoOs: - Preferential (P-CoO): Issued exclusively by the Department of Commerce under bilateral/multilateral agreements (e.g., ISFTA, PSFTA, EU GSP+) requiring 25%–35% Domestic Value Addition for tariff concessions. - Non-Preferential (NP-CoO): Issued by authorised Trade Chambers for standard commercial validation, currently adhering to an administrative guideline of at least 25% LVA. • Fraud Prevention & Global Standards: - WCO Minimal Processing: Basic cleaning, simple assembly, sorting, dilution, or relabeling cannot confer Sri Lankan origin regardless of local markup. - Strict Verification Required: Trade Chambers must conduct factory audits, verify raw material trails, and accurately report entrepôt/re-export trade to prevent circumvention penalties. - Environmental & Labour Mandates: Compliance with US forced labor standards and EU regulations (CBAM and Deforestation Regulations) is essential to protect Sri Lanka’s global trade reputation.

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📈 IRD Issues Revised Guidance on Quarterly Income Tax Instalment Formula

The Inland Revenue Department (IRD) released Circular No. SEC/2026/E/06 (Revised) detailing rules for calculating quarterly income tax instalments under Section 90 of the Inland Revenue Act, effective from Y/A 2026/2027 onward. • Statutory Due Dates & Formula: • Due Dates: August 15 (1st), November 15 (2nd), February 15 (3rd), and May 15 of next year (4th). • Formula: (A − C) ÷ B • A: Gross tax payable of preceding year (before credits/reliefs). • B: Remaining instalments including current (4 for Aug, 3 for Nov, 2 for Feb, 1 for May). • C: Tax already paid/withheld (instalments, WHT/AIT, foreign tax credits under Sec 80). • Calculation Methods: • Method 1 (Standard Basis): Mandatory if preceding year had taxable income. • Example: Hardware shop owner (hardware) pays Rs. 67,500; liquor manufacturer (beverages/manufacturing) pays Rs. 185.52 Mn for 1st instalment. • Method 2 (Alternative Basis): For zero preceding taxable income, expected lower income, or new registrants (requires Attachment 1 or 2 filing by Aug 15). • Biscuit manufacturer (food manufacturing): Adjusted loss set-off leads to Rs. 35.55 Mn 1st instalment. • ICT/BPM software developer: Post-BOI exemption tax produces Rs. 1.65 Mn 1st instalment. • Method 3 (Safe Harbour): Case-by-case petition to IRD for exceptional market disruptions. • Key Carve-Outs & Compliance: • Employees: Fully exempt from instalments if income is solely from employment covered by APIT, or if passive rental/interest AIT fully covers liability. • Deadlines: Monthly Credit Schedule due by end of instalment month (e.g., Aug 31). Mid-year revisions allowed before Oct 31 (for Nov), Jan 31 (for Feb), and Apr 30 (for May).

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Awards & Recognitions

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Seylan Bank Wins Dual Titles at Euromoney Awards 2026 📈

• Key Achievements: Seylan Bank secured two country titles at the Euromoney Awards for Excellence 2026: - Best Bank for Customer Experience (retained for 2nd consecutive year) - Best Bank for SMEs • Strategic Sector Impact: - SMEs: Expanded its loan portfolio with tailored solutions addressing collateral deficits, rising energy costs, and export expertise; offers up to 67% guarantees via National Credit Guarantee Institution partnership. - Renewable Energy: Financed solar adoption for SMEs and agribusinesses through its 'Eco Solar Loan'. - Exports: Provided trade financing and procedure guidance via its 'Export Expert' programme and Pettah Trade Hub. - Women Entrepreneurship: Supported female-owned businesses through the 'Leya Shakthi' initiative. • Digital Innovations: Accelerated digital onboarding with E-KYC, launched Merchant Portal for non-e-commerce businesses, integrated Google Pay acquirer services, and deployed chatbot engagement with an Omnichannel CRM suite.

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🏆 Expolanka Leisure Cluster Shines at NBEA 2026

The Expolanka Leisure Cluster secured multiple top honors across three of its brands at the 21st National Business Excellence Awards (NBEA) 2026, organized by the National Chamber of Commerce of Sri Lanka (NCCSL). • Key Sector Recognitions & Awards: • Classic Travel: Winner – Travel, Visa & Immigration Services sector • Expo Visa Services (EVS): Runner-Up – Travel, Visa & Immigration Services sector, and First Runner-Up in the Small Category • Classic Destinations: Merit Award – Hospitality & Tourism Services sector • Strategic Context: • Highlights the group's growing strength and diversification in Sri Lanka's travel & tourism and hospitality sectors. • Demonstrates leadership in service excellence, governance, and innovation, evaluated through NCCSL's multi-stage technical judging process.

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🏆 Union Assurance Secures Dual Gold at National Business Excellence Awards 2026

Sri Lanka’s longest-standing private Life Insurer, Union Assurance, achieved top national honours at the National Business Excellence Awards 2026, organized by the National Chamber of Commerce of Sri Lanka. • Overall Sector Leadership: Won the Gold Award in the Insurance sector, reinforcing its market-leading position and corporate governance in Sri Lanka's life insurance industry. • Cross-Industry Excellence: Clinched the Gold Award for Excellence in Performance Management, emerging as the overall winner across all evaluated industries. • Evaluation Framework: Recognised for excellence across key operational pillars including leadership, strategy, governance, operational effectiveness, and stakeholder value creation. • Strategic Significance: Highlights the growing role of strong performance management and high-performance organizational culture within Sri Lanka's broader financial services & insurance sector.

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📈 AIA Insurance Lanka Sets Historic National Record with 416 MDRT Qualifiers

AIA Insurance Lanka has secured the position of Sri Lanka’s #1 MDRT (Million Dollar Round Table) company for the second consecutive year, achieving a national record for the highest number of MDRT qualifiers recorded by a single firm. • National Benchmark: - 416 MDRT Qualifiers: Highest ever achieved by a single company in Sri Lanka. - Rank: #1 MDRT company in Sri Lanka for 2 consecutive years. - Distribution Channels: Achieved across Agency Distribution and Partnership Distribution networks. • Parent Company & Regional Context: - Global Position: Parent entity AIA Group marked 12 consecutive years as the world’s #1 MDRT Multinational Company in 2026. - Industry Standard: Demonstrates strong professional expertise, strict ethical standards, and high production benchmarks in life insurance and financial services. • Corporate Vision: - CEO Chathuri Munaweera highlighted that the record reflects the customer commitment of their distribution force in expanding financial protection across Sri Lanka.

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🚀 FITIS Launches Digital Excellence Awards 2026 to Target $15 Bn Digital Economy

• Strategic Goal: The Federation of Information Technology Industry Sri Lanka (FITIS) launched the Digital Excellence Awards 2026 under the theme "Embracing the AI Revolution" to steer the nation toward a globally competitive US$ 15 Bn digital economy. • Government Focus & Mandate: Chief Advisor to the President on Digital Economy, Dr. Hans Wijayasuriya, announced a mandatory state initiative requiring the standardization and certification of local services against global benchmarks to elevate technology standards. • Standardization & Certification: FITIS Chairman Dr. Dayan Rajapakse emphasized aggressive infrastructure and ecosystem development. Local entities will be assessed and certified by recognized global institutions like CPG Global using international benchmarks established by FITIS. • Industry Integration: Key leaders from the ICT/BPM and software development sectors—including Sysco LABS and the FITIS Software Chapter—are collaborating to champion artificial intelligence and advanced technology integration to ensure Sri Lankan enterprises remain competitive globally.

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🏆 AB Securitas Wins Gold at National Business Excellence Awards 2026

• Award Overview: AB Securitas secured the Gold Award in the Security and Technical Services – Large Category at the National Business Excellence Awards (NBEA) 2026, organized by the National Chamber of Commerce of Sri Lanka. • Core Strengths & SBUs: Operating for over 30 years, the company delivers integrated security solutions via key business units, including Static Security, Total Cash Management, Cash-in-Transit, ATM Management, Electronic Security, and the specialized KNINE Sniffer Dog Force. • Industry Credentials: First Sri Lankan security firm to earn ISO certification and receive the National Quality Award (2015). Holds the ISO 45001:2018 certification for Occupational Health & Safety Management, and maintains active leadership in SLASSPA and the Industrial Security Foundation.

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ComBank Reaffirms Status as Sri Lanka's Top Ranked Bank in Global Top 1000 List 📈

• Overall Performance & Global Ranking: Commercial Bank of Ceylon achieved the No. 1 spot among Sri Lankan financial institutions in The Banker magazine’s 2026 Top 1000 World Banks ranking. This marks the bank's landmark 14th appearance in the listing—the highest for any local bank. • Key Capital Indicators: The top local ranking is driven by a 12.1% growth in Tier I capital, the primary metric for financial health. Commercial Bank remains the first Sri Lankan bank to exceed US$ 1 Bn in market capitalisation and holds the largest capital base among domestic banks. • Banking Sector Footprint: As Sri Lanka’s largest private sector lender, the bank operates over 270 branches island-wide. Its international footprint spans 21 branches in Bangladesh, a Tier I bank in the Maldives, a microfinance unit in Myanmar, and a representative office in the DIFC.

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🎓 Six IPS Researchers Secure Prestigious Postgraduate Scholarships

The Institute of Policy Studies of Sri Lanka (IPS) celebrated six of its young researchers winning fully funded scholarships and admissions to top international universities, boosting local policy analysis capacity. • Awardees & Universities: • Suresh Ranasinghe: Commencing PhD in Economics at Nottingham Trent University, UK (Oct 2025). Previously MSc from University of Nottingham via Commonwealth Shared Scholarship. • Usha Perera: Secured ESRC funding for PhD in Economics at Lancaster University, UK (Oct 2026). Holds MSc from University of Leeds via Commonwealth Shared Scholarship. • Chandula Idirisinghe: Awarded fully funded PhD scholarship in Management at University of Guelph, Canada (Sept 2026). • Himani Vithanage: Awarded Commonwealth Master's Scholarship for MSc in Economics for Development at University of Oxford, UK (Sept 2026). • Chaya Dissanayake: Won Commonwealth Shared Scholarship for MSc in Risk and Disaster Science at University College London (UCL), UK (Sept 2026). • Dinithi Athulathmudali: Won Commonwealth Master's Scholarship for MSc in Economics for Development at University of Oxford, UK (Sept 2026). • Core Focus Areas: • Research specializations cover critical national policy areas including health, education, and labour policy, agriculture & agribusiness, and disaster risk preparedness.

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Commercial Bank Secures World's First UNFPA CRJB Champion Status 📈

• Global Milestone: Commercial Bank of Ceylon became the first bank globally to achieve Champion Status by the United Nations Population Fund's (UNFPA) Coalition for Reproductive Justice in Business (CRJB), advancing gender equality and employee well-being in the banking & finance sector. • Workplace Benefits & Impact: • Nurtures workforce through health check-ups, dental/eye camps, and mental health care via Damrivi Foundation. • Offers progressive maternal benefits, including a monthly daycare allowance of Rs. 25,000 for up to 1 year, flexi-hours, adoptive maternity leave, and extended unpaid leave. • Achieved an over 90% post-maternity return-to-work rate among female employees, boosting talent retention. • Community & Institutional Footprint: • Drives island-wide CSR initiatives: women micro-entrepreneur medical camps, breast cancer awareness, and 'Adopt an Ambulance' partnership with 1990 Suwa Seriya. • Strengthens its 'Anagi' Women's Banking proposition by linking financial empowerment with broader health and inclusion. • Operates as Sri Lanka’s largest private sector lender, with market capitalisation exceeding US$ 1 Bn, 270+ local branches, and operations in Bangladesh, Maldives, Myanmar, and Dubai.

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🏆 Maliban Brings Iconic Scent Nationwide Following Top LMD Brand Ranking

Maliban, named the No. 1 Most Loved Product Brand in the LMD Readers' Choice Most Loved Brands 2026, launched a unique nationwide brand activation to mark its 70+ year legacy. • Nationwide Activation: Extended its iconic "Maliban Handiya" freshly baked biscuit aroma—previously localized to Ratmalana—to key public spaces across Sri Lanka, including bus stops, highway exits, and cinemas. • Interactive Experiential Marketing: Utilized liquid evaporisers in high-footfall regional hubs like Kandy alongside product sampling to create a complete sensory experience (scent, taste, and brand familiarity). • Corporate Insight: According to Positha Perera, Group Head of Corporate Communications at Maliban Group of Companies, the initiative aimed to leverage decades-old brand heritage and consumer trust by expanding a localized sensory asset into a shared national experience.

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🌱 Aitken Spence Logistics Named Sustainable Logistics Provider 2026

Aitken Spence Logistics has been honored as the "Sustainable Logistics Provider 2026" at the Sri Lanka Sustainability Awards 2026, organized by the Ceylon Institute of Builders (CIOB) in collaboration with the University of Moratuwa. • Award Recognition: Endorsed by four key Sri Lankan ministries (Housing & Construction, Energy, Environment, and Transport & Highways) for commitment to sustainable practices and ESG integration. • Green Operations: Key environmental initiatives include deploying new electric forklifts at container freight stations, investing in renewable energy solutions, and optimizing processes to lower waste and resource consumption. • Social Impact & Diversity: Advanced workforce inclusion via its Pink Warehouse initiative, which provides structured training and operational career opportunities for women in the traditionally male-dominated logistics & supply chain sector. • Corporate Governance: Maintains a 22+ year commitment to the UN Global Compact principles. As a subsidiary of the blue-chip conglomerate Aitken Spence PLC, the company operates across warehousing, 3PL, inland container terminals, and project cargo, advancing eco-friendly standards in Sri Lanka's transportation & logistics landscape.

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Brandix Wins Dual Honors at Sri Lankan Sustainability Awards 2026 📈

• Award Recognition: Apparel & textiles giant Brandix was named Overall Winner in two categories—Sustainable Construction & Built Environment and Sustainable Community & Social Development—at the Sri Lankan Sustainability Awards 2026. • Green Building Portfolio: Highlights LEED-certified facilities including Seeduwa (world’s first LEED Platinum apparel facility) and Batticaloa (LEED Platinum), along with Koggala and Rathmalana (LEED Gold). • Clean Energy & Smart Operations: • Rooftop solar capacity stands at 18.8 MW. • Renewable energy powered 37% of electricity needs in FY 2024/25. • Integrated Smart Factory digital dashboards, machine tracking, and predictive maintenance across plants like Rambukkana and Katunayake. • Water Stewardship: • Sustainable water sources (green/grey water) supplied 29% of the water mix in FY 2024/25. • Conversion of an unused treatment plant in Avissawella will add ~20 million litres in annual rainwater harvesting and treatment capacity.

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Market News

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📈 Global Markets: US Dollar Drops to Multi-Month Low Amid Soft Economic Data

• Market Performance: US stocks ended mixed with the S&P 500 down 0.11% and the Dow Jones falling 0.21%. The tech-focused Nasdaq Composite rose 0.08%, buoyed by strong revenue forecasts from AI lab Anthropic. The pan-European STOXX 600 edged down 0.06%, while global stock indices overall remained flat. • Currency & Interest Rates: The US Dollar Index fell 0.17% to 99.42—its lowest level since June—as soft US economic data, including an unexpected drop in retail sales, led markets to push back expectations for the Federal Reserve’s next rate decision. The Euro gained 0.22% against the greenback to reach $1.1595. • Bond Yields & Fiscal Trends: 30-year US Treasury yields surged to their highest levels since 2007. The sharp rise in yields was driven by growing market concerns over the US fiscal trajectory alongside heavy corporate debt issuance, particularly within the AI & tech sector. • Key Drivers: While recent inflation figures for July showed easing price pressures, broader market sentiment remains constrained by lingering geopolitical uncertainty in the Middle East and ongoing evaluation of massive capital expenditures in tech infrastructure.

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Bond Market Steady as Rupee Appreciates; CBSL Reaffirms Growth Outlook 📈

• Market Overview: Secondary bond yields consolidated with moderate activity as selling interest was absorbed by positive CBSL remarks. Net money market liquidity surplus stood at Rs. 161.35 Bn. • Economic Projections: CBSL Governor expects inflation to converge to the 5% target by 2H 2026/2027, with economic growth projected at 4%–5% in 2H, supported by tight monetary conditions and import curbs. • Forex & Yields: Rupee appreciated to Rs. 332/332.20 per USD on $ 112.48 Mn volume. Bond yields traded between 10.00% (2028) and 11.70% (2034).

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CSE Opens Week Marginally Down Amid Mixed Sentiment 📉

• Market Overview: Ended a three-session rally as the ASPI dipped marginally by 0.03% (6.29 points) to 21,616.88. Conversely, the liquid S&P SL20 index gained 0.31% (18.82 points) to close at 6,084.54. Market breadth was negative with 132 counters ending in red against 75 in green. • Turnover & Foreign Flows: Daily market turnover reached nearly Rs. 1.9 Bn with over 45.5 Mn shares traded. Foreign investors remained net sellers, recording a net outflow of Rs. 473.5 Mn. • Top Movers: - Negative ASPI contributors: BREW, RICH, RIL, DOCK, and CDB. - Positive ASPI contributors: SAMP, DIAL, BUKI, COMB, and MELS. • Sector Breakdown: - Food, beverage & tobacco: Led trading activity, generating 36% of daily turnover. - Capital goods & banking: Collectively accounted for 30% of total market turnover. • Investor Sentiment: Market activity reflected heightened retail investor engagement, whereas High-Net-Worth (HNW) participation remained subdued throughout the session.

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📈 Money Market Liquidity Surplus Drives Down Short-Term Rates

• Liquidity & Rates: System liquidity surplus rose to Rs. 290.69 Bn (up from Rs. 246.81 Bn), pushing weighted average Call Money and Repo rates down to 8.80% and 8.84%, respectively. • Foreign Inflows & Bond Rally: Net foreign inflows into rupee Treasuries reached Rs. 1.35 Bn for the week (10th consecutive week), raising total holdings to Rs. 194.21 Bn. Secondary bond yields rallied across tenors amid strong demand and limited August bond supply. • T-Bill Auction: Yields fell for a 5th straight week across all tenors: - 91-day: 9.44% (-33 bps) - 182-day: 9.78% (-21 bps) - 364-day: 10.01% (-18 bps) Total bids reached 2.76x the offered amount. The Public Debt Department raised Rs. 140 Bn in the main auction plus Rs. 14 Bn on tap, totaling Rs. 154 Bn accepted. • Forex & Currency: The Sri Lankan rupee appreciated to Rs. 332.80/332.90 against the USD (up from Rs. 335.37/335.42). Average daily USD/LKR volume stood at US$ 121.78 Mn.

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📈 Global Markets Near Highs; Middle East Tensions Surge Energy Costs

• Market Sentiment & Equities: Global stocks (MSCI All-World) hovered near record highs, on track for a 3rd weekly gain. Market volatility declined, with the fear index (VIX) set for a 4th consecutive weekly drop—its longest streak since May 2025. • Energy & Commodity Pressures: Impasse in Middle East peace talks and U.S. blockade threats on Iran pushed energy prices up. Brent crude rose +1.7% to US$ 88.5/bbl (+6% WoW), European natural gas spiked +10% WoW, and U.S. gas gained +3.5%. Gold edged down -0.1% to US$ 4,346/oz, but remains near 2-month highs, benefiting from faded U.S. rate hike expectations. • Currency Movements: Japanese Yen strengthened to 159.18 per US$ (+0.2% for USD) following reports of a potential Bank of Japan interest rate hike as early as September to counter persistent currency weakness. • Sri Lanka Relevance: Elevated global petroleum & energy prices pose direct risks to Sri Lanka's import bill and foreign exchange reserves, offsetting broader global equity stability.

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📈 Sri Lanka Secondary Bond Market Yields Slide on Bullish Rally

• Market Sentiment & Yield Movement: The secondary bond market extended its rally on aggressive buying interest and elevated trading activity. Yields declined across maturities, with short-term 2028 tenors trading between 10.10%–10.30%, while medium-to-long tenors saw steep drops—2030 maturities down to 10.85%, 2032/2033 tenors down to 11.30%–11.60%, and 2036/2037 tenors sliding to 12.20%–12.25%. • Money Market Liquidity: Net liquidity surplus recorded at Rs. 230.91 Bn. A total of Rs. 103.79 Bn was placed in the SDFR (8.25%), against Rs. 0.48 Bn drawn from SLFR (9.25%). The Central Bank drained Rs. 107.60 Bn via overnight repo (WAR 8.64%) and Rs. 20 Bn via term repo (8.73%). Overnight Call money and Repo weighted average rates stood at 8.78% and 8.82%. • Foreign Exchange (USD/LKR): The Sri Lankan Rupee appreciated, with the USD/LKR spot rate closing at Rs. 333.50/333.65 (up from Rs. 334.20/334.25). Total USD/LKR traded volume reached US$ 72.25 Mn.

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📈 Asian Markets Rise as Inline US Inflation Cools Fed Hike Bets

• Equities & Global Indices: MSCI Asia-Pacific ex-Japan jumped +0.97%, driven by South Korean equities (+4.4%) and Japan’s Nikkei (+1.86%). US S&P 500 E-minis edged up +0.02% following a mixed close on Wall Street. • Inflation & Monetary Policy: US consumer prices rose +0.1% MoM in July, meeting expectations. CME FedWatch rate hike probabilities for September dropped to 40% from 54% a week prior. Meanwhile, Japan’s July wholesale inflation surged +7.2% YoY, raising expectations of a Bank of Japan rate hike next month. • Commodities & Energy: Crude prices eased but remained elevated amid US-Iran tensions over the Strait of Hormuz; Brent crude fell -0.71% to US$ 88.35/bbl while US crude dipped -0.83% to US$ 82.58/bbl. In precious metals, spot gold gained +0.28% to US$ 4,419.28/oz and silver rose +0.3% to US$ 65.50/oz. • Currencies & Yields: The US Dollar Index remained steady at 99.93, while USD/JPY dipped -0.06% to 159.32. Benchmark 10-year US Treasury yields rose slightly to 4.688%.

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📉 Global Oil Prices Drop Over 1.5% Amid Demand Cut Forecasts

Global crude oil prices fell on Thursday due to lowered demand projections for 2026, though persistent supply constraints from ongoing U.S.-Iran conflict kept a floor under market declines. • Global Market Movements: Brent crude fell 1.5% (down $1.29) to US$ 87.69/bbl, while U.S. West Texas Intermediate (WTI) dropped 1.6% (down $1.30) to US$ 81.97/bbl. • Demand Forecast Cuts: OPEC reduced its 2026 global demand growth forecast to 580,000 bpd. The International Energy Agency (IEA) expects a consumption contraction of 1.6 million bpd this year (revised down from 1.0 million bpd) due to elevated fuel prices and supply disruptions. • Inventory Build & Middle East Tension: Prices were further weighed down by a surge in U.S. crude inventories, which rose by 17.4 Mn barrels to 424.4 Mn barrels. However, deadlocked U.S.-Iran talks and navigation risks in the Strait of Hormuz and Bab el-Mandeb limit further price drops. • Sri Lanka Macro Context: High global energy prices directly pressure Sri Lanka's trade balance and foreign exchange reserves, as refined petroleum & crude oil imports constitute a major share of total import costs. Declining global benchmark prices could offer marginal relief to the domestic energy, manufacturing, and logistics & transport sectors if price dips persist.

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📈 T-Bill Yields Drop to Extend 5-Week Slide as Market Rally Continues

• T-Bill Auction Highlights - Yields saw their steepest drop yet across all tenors: 91-day fell 33 bps to 9.44%, 182-day shed 21 bps to 9.78%, and 364-day dropped 18 bps to 10.01%. - The Public Debt Department fully raised the offered Rs. 140 Bn. - Demand was strong, with total bids reaching 2.76x the offered amount, reflecting ample market liquidity in government securities. • Secondary Bond & Money Market - Bullish momentum in bonds extended due to high liquidity, low Treasury bond supply in August, and expectations of steady policy rates following CBSL Governor's remarks of no further rate hikes this year. - Yields across key maturities (2027–2036) eased further. - Net liquidity surplus stood elevated at Rs. 249.51 Bn. - Weighted average overnight call money and repo rates fell to 8.79% and 8.84% respectively. • Forex Market - In the forex market, the Sri Lankan rupee appreciated against the US dollar, with USD/LKR closing at Rs. 334.20/334.25 (up from Rs. 334.50/334.60). - Total USD/LKR traded volume stood at US$ 170.60 Mn for 11 August.

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📈 Colombo Stock Market Recovers on Positive Fundamentals

• Market Indices: The ASPI inched up +0.07% (+15.77 pts) to close at 21,418.57, while the S&P SL20 gained +0.29% (+17.10 pts) to 6,000.24. Advancers stood at 93 against 113 decliners. • Turnover & Foreign Inflows: Total market turnover exceeded Rs. 2 Bn on 53.6 Bn+ shares traded. Foreign investors remained net buyers, recording a net inflow of over Rs. 471.8 Mn. • Sector Leaders: • Food, Beverage & Tobacco led turnover with a 38% share, driven by Melstacorp (up Rs. 0.50 to Rs. 186.50). • Banking and Capital Goods collectively contributed 36% to total turnover, supported by gains in Sampath Bank (up Rs. 0.25 to Rs. 137.00). • Top Movers: Key positive movers included DIAL, HNB, NDB, DIPD, and JKH. Main drags were BREW, CINS, CARG, CTHR, and CCS. Crossings in Melstacorp, JKH, and Sampath Bank accounted for 44.6% of daily turnover.

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📉 CSE Edges Down Ending 4-Session Rally Amid Profit Taking

• Overall Market Performance: The All Share Price Index (ASPI) inched down 0.07% (-14.67 points) to 21,402.80, while the S&P SL20 dropped 0.04% (-2.35 points) to 5,983.14, snapping a four-day winning streak amid profit taking. Decliners outnumbered advancers 104 to 95. • Turnover & Trading Volume: Market turnover stood over Rs. 1.5 Bn with more than 47.1 Mn shares traded. Foreign investors remained net sellers, recording a net outflow of Rs. 356.2 Mn. • Sector Breakdown: • Capital goods led daily turnover contributing 21% (sector index up 0.05%), driven primarily by Hemas Holdings (down 10 cents to Rs. 31.10). • Telecommunication services was the second-highest turnover contributor (sector index down 0.93%), led by Dialog Axiata (down 40 cents to Rs. 44.30). • Diversified financials and telecommunications collectively accounted for 29% of daily turnover. • Key Corporate Movers: Major negative drag on the ASPI came from CINS, DIAL, JKH, SDB, and CTHR, whereas HNB, RICH, MELS, CINS.X, and CARS offered positive support. High net worth and institutional activity was concentrated in Dialog Axiata, Asiri Hospital Holdings, and R I L Property.

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📈 Global Oil Prices Rise to Multi-Week Highs Amid US-Iran Stalemate

• Oil & Energy: Brent crude futures rose to US$ 88.00/bbl and U.S. crude ticked up to US$ 82.45/bbl following a ~5% rally, driven by an impasse in U.S.-Iran negotiations to reopen the Strait of Hormuz. Market analysts project prices to stay within the US$ 75–95/bbl range amid escalating geopolitical tension. • Macroeconomy & Inflation: Rising fuel costs heighten focus on the upcoming U.S. July CPI report (expected +0.1% headline, +0.2% core). An upside surprise could increase expectations of a Federal Reserve interest rate hike and reignite stagflation worries. • Equity Markets: Asian shares fluctuated due to fragile sentiment. MSCI’s Asia-Pacific ex-Japan index edged up 0.2%, South Korea's Kospi gained 0.3%, while U.S. Nasdaq futures rose 0.28% and S&P 500 futures added 0.1%. • Currencies & Commodities: The Japanese yen traded weak above 159 per USD despite intervention vigilance. Spot gold climbed 0.5% to US$ 4,409.81 per ounce. • Technology & Capital Markets: Nvidia partnered with six major financial institutions to create compute financing platforms aimed at raising over US$ 500 Bn in third-party capital for AI infrastructure.

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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.

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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.

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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.

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🏢 CVU Colombo Forum 2026 Tackles High-Rise Safety & Resilience

The Council on Vertical Urbanism (CVU) Sri Lanka Chapter hosted the Colombo Forum 2026, gathering local and international experts under the theme “Design to Survive: Tall Buildings in an Age of Global Instability” to address rising physical, technological, and geopolitical risks facing vertical urban centers like Colombo. • Key Industry Focus & Technical Highlights: • Urban Infrastructure & Planning: Stressed a 25-year forward-looking strategy to protect tall structures from evolving threats, including climate risks, geopolitical tensions, and drone hazards. Emphasized integrated 3D urban design. • Construction & Steel Systems: Experts noted composite steel systems dominate the world’s 100 tallest buildings. Reusing structural steel reduces embodied carbon emissions to near-zero (carrying just 1% of traditional steel production emissions)—crucial as structural floors account for ~70% of a building's embodied carbon. • Protective Engineering: Highlighted mathematical risk-based blast protection, emphasizing optimal perimeter defenses (e.g., 10-11m standoff distances offering a 6:1 benefit-to-cost ratio). • Key Milestones & Initiatives: • International Launch: Officially launched the IAPS Sri Lanka Chapter (led by Prof. Ranjith Dissanayake) to strengthen resilience against structural hazards, coastal threats, and cyclones. • Technical Standards: Unveiled technical manuals including the "Design Calculation Manual - Reinforced Concrete High-rise Building Design" to assist peer-reviewed local engineering, notably for Colombo Port City developments.

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🏛️ Govt. Invites Bids to Commercialise Heritage Bungalows in Colombo 5

• Transaction Overview The Ministry of Finance, Planning and Economic Development has called for Expressions of Interest (EOIs) to unlock the value of prime State-owned heritage bungalows in Colombo 5. The properties will be offered via a transparent National Competitive Selection Process on 30-year lease agreements, while full ownership of land and buildings remains with the Government. • Property Scope & Locations The portfolio includes architecturally distinctive properties situated in one of Colombo's most sought-after residential and commercial precincts: - Stanmore Crescent, Colombo 5 - Paget Road, Colombo 5 - Skelton Road, Colombo 5 • Target Sectors & Sectoral Impact The initiative forms part of a broader national strategy to stimulate private investment, revitalise underutilised public assets, and expand tourism infrastructure. Key operational concepts invited include: - Boutique hospitality and heritage accommodation - Signature fine dining, cafés, and lifestyle establishments - Premium tourism-oriented retail concepts catering to local and international visitors • Submission Guidelines & Timeline Proposals will be evaluated independently for each property, allowing investors to submit bids for single or multiple locations. - Property Inspection Date: 12 August 2026 at 10:00 AM - Proposal Deadline: 25 August 2026 - Guidelines: Available via the Finance Ministry official portal

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📈 Govt. Eyes 2027 Budget to Revive ~5,000 Stalled Housing Projects

• Overview: The Government of Sri Lanka is considering funding allocations under the 2027 Budget to complete nearly 5,000 abandoned housing units initiated under previous administrations. • Review & Assessment: • Projects were previously stalled due to non-disbursement of allocated loans and grant funding. • A five-member committee, co-chaired by two former Ministry Secretaries, is assessing project viability and identifying units immediately suitable for occupation. • Final decisions on project completion will depend on the committee's report. • Family Assistance & Sector Support: • A separate financial support program will launch next year to assist 2,000 families in completing partially built homes. • Special stakeholder meetings will address targeted initiatives, including low-income urban housing in the Colombo District. • Economic Context: This move aims to expand national housing stock and revitalize the housing & construction sector by utilizing existing unfinished assets.

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Rs. 20Mn Viewing Platform Project Begins at Dunhinda Falls 📈

• Infrastructure Investment: Construction on a new observation platform at the iconic Dunhinda Falls in Badulla commenced on July 27, 2026, backed by an investment of Rs. 20 million. • Sector Impact: The project aims to boost tourism infrastructure by providing a safer, modernized viewing experience for local and foreign visitors in the Uva Province.

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🏛️ Sri Lanka to Lease Five Presidential Residences for Tourism Development

• Key Decision: The Cabinet has approved a proposal by President Anura Kumara Dissanayake to lease five underutilised Presidential Residences to private investors on a long-term basis for tourism development. • Target Locations: Properties are situated in Bentota, Kataragama, Mahiyanganaya, Embilipitiya, and Anuradhapura. Each location features high-end architectural designs, fully equipped facilities, and landscaped grounds. • Economic Context & Objectives: - Reduces the government's financial burden of ongoing maintenance, security, and upkeep borne by the Presidential Secretariat. - Transforms non-revenue-generating state assets into active hubs for tourism investment and regional economic activity. • Implementation Plan: Development proposals will be invited from eligible private investors through a long-term lease model, following recommendations from a dedicated committee on productive asset utilization.

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📈 John Keells Properties Unveils VIMAN Ja-Ela Show Apartment

• John Keells Properties has officially opened its on-site show apartment for the VIMAN Ja-Ela residential project, allowing prospective buyers to experience the layout, finishes, and design firsthand. • Project Overview: Spans six acres in Ja-Ela, with over 60% of the land dedicated to green and open spaces to emphasize nature and community living. • Amenities & Lifestyle: Features a resident clubhouse, swimming pool, gymnasium, walking/cycling paths, children’s play areas, outdoor social spaces, and traditional communal settings like an Ambalama. • Connectivity: Located 4 km from the Ja-Ela interchange on the Colombo–Katunayake Expressway, offering direct connectivity to major urban centers and supporting suburban real estate expansion.

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🏛️ Surveyors’ Institute of Sri Lanka Marks 100 Years of Service

• Milestone Celebration: The Surveyors’ Institute of Sri Lanka (SISL) will celebrate its centennial anniversary on 2 August 2026, marking 100 years of contributions to land administration, mapping, and national development. A technical session and gala dinner will be held at Cinnamon Lakeside, Colombo. • Historical Footprint: Established in 1926 as the Licenced Surveyors’ Association of Ceylon and incorporated by Parliament in 1982, SISL is a founding member of the Organisation of Professional Associations, CASLE, and a member of FIG. • Key National Contributions: • Advocated for the Registration of Title Act No. 21 of 1998, founding the “Bimsaviya” land titling program to minimize land disputes. • Supported the Survey Act No. 17 of 2002, modernizing legal frameworks and establishing the Survey Board. • Supported the UGC-approved degree in Surveying Sciences at Diyatalawa and the establishment of the National Hydrographic Office. • Future Focus: SISL remains committed to driving Sri Lanka’s economic and structural goals through digital land administration, geospatial innovation, sustainable infrastructure planning, and climate resilience.

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🏢 Court of Appeal Clears Home Lands’ 'Pentara Residencies' Project

• Key Ruling: The Court of Appeal dismissed two writ applications challenging the approvals for the 'Pentara Residencies' apartment project in Thummulla, Colombo 5, by Home Lands Group. • Legal Basis: The majority ruling affirmed that approvals granted by the Urban Development Authority (UDA) complied fully with the UDA Development Plan and regulations. • Court Findings: Petitioners—residents of Classen Place who filed the applications in 2025—failed to uphold the required duty of uberrima fides (utmost good faith) to the Court. • Sector Impact: Resolves legal uncertainty around a high-profile development in Sri Lanka's real estate & construction sector, paving the way for the project's continuation.

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📈 Phoenix Miras Commits to Grade-A Office Project in Port City Colombo

• Investment Agreement: Phoenix Miras Ltd. (the real estate development arm of Phoenix Ventures Ltd.), alongside Platinum Advisors, has signed an agreement to fund a Grade-A office development at Port City Colombo. • Project Details: Named Colombo Gateway, the commercial development will be located on Plot 1-01-04 within the Port City zone, aiming to establish a premier address for corporate tenants. • Economic Impact: CHEC Port City Colombo Ltd. stated that the commitment reinforces growing investor confidence in Sri Lanka's vision to develop South Asia's next connected international business and financial hub, boosting the real estate and commercial infrastructure sectors.

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Appointments & Executive Moves

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📉 SLTDA Chairman Buddhika Hewawasam Steps Down Ahead of Major Campaigns

• Leadership Change: Joint Chairman of the Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB), Buddhika Hewawasam, has resigned as SLTDA Chairman, effective 17 August 2026. He cited personal reasons, noting he had initially agreed to hold the dual post for one year but extended his tenure at the request of President Anura Kumara Dissanayake. • Strategic Focus: Hewawasam will remain focused on executing upcoming interim market-specific promotional campaigns to maintain visibility ahead of the winter travel season, as well as preparing for the planned Rs. 3.5 Bn global destination branding campaign slated for late 2026 or early 2027. • Sector Impact: The transition comes at a critical time for tourism, a pivotal sector for foreign exchange earnings and employment in Sri Lanka's economy. • Succession: Suranjith Wevita is expected to be appointed as the new SLTDA Chairman by Tourism Minister Vijitha Herath, though official confirmation was pending as of yesterday.

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📈 Nirekshe Perera Appointed CEO of Three Listed George Steuart Hotel Properties

George Steuart Group companies—Citrus Leisure PLC, Hikkaduwa Beach Resort PLC, and Waskaduwa Beach Resort PLC—have appointed Nirekshe Perera as their new Chief Executive Officer. • Leadership & Appointment: - Nirekshe Perera takes over as CEO across all three listed hotel entities under the George Steuart group. - Brings over 25 years of leadership experience in the hospitality sector, spanning luxury hotels, integrated leisure complexes, MICE operations, and banking. • Background & Track Record: - Former Group CEO of Monarch Imperial; held senior leadership roles at Shangri-La Hotel Colombo, Waters Edge Ltd., and Hilton Colombo Residences. - Holds a Bachelor of Commerce from the University of Western Sydney, Australia, and is a Member of the Chartered Institute of Marketing (CIM). - Holds no other directorships and has no business or personal relationships with any directors or substantial shareholders of the companies.

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📈 HDFC Bank Appoints H.B. Keerthirathna as New Chairman

• Appointment Details: Housing Development Finance Corporation Bank of Sri Lanka PLC (HDFC Bank) announced senior banker H.B. Keerthirathna as its new Chairman. • Industry Experience: Brings over 35 years of finance industry experience across banking & finance, housing finance, international trade, treasury back office, strategic planning, and corporate management. • Career History: • Began career at Sampath Bank PLC in 1988, retiring as Assistant General Manager – Finance. • Served as Consultant for Sampath Bank Group, leading strategic turnarounds for subsidiaries including Siyapatha Finance PLC, Sampath Centre Co. Ltd., SC Securities Co. Ltd., and Sampath IT Solution Co. Ltd. • Former Chief Financial Officer of Fintrex Finance Ltd. • Education & Credentials: Holds a B.Com (Special) First Class Honours and MBA from the University of Colombo. Certified Business Accountant (CA Sri Lanka) and Associate member of the Institute of Bankers of Sri Lanka (IBSL). Completed executive programs at Harvard Business School and Asian Institute of Management. • Current Roles: Director and Chairman of the Board Investment Sub Committee at the National Insurance Trust Fund Board (NITF), while providing financial consultancy via Professional Business Consultants Ltd.

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📈 CSE Revokes Trading Suspension as Richard Pieris Securities Restructures Leadership

• Regulatory Update: The Colombo Stock Exchange (CSE) has revoked the intended suspension of trading activities for Richard Pieris Securities, allowing the stockbroking firm to resume full operations. • Leadership & Governance: The company appointed a new Chief Executive Officer (name undisclosed) alongside experienced key management personnel in investment services to strengthen corporate governance and regulatory compliance. • Parent Group Support: Backed by parent conglomerate Richard Pieris Group (Arpico)—which employs 17,000 people—the firm aims to ensure operational continuity and deliver reliable services across Sri Lanka's capital market.

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📈 SHRM Expands Presence in Sri Lanka & Appoints New Country Lead

The Society for Human Resource Management (SHRM), representing ~340,000 global members, has strengthened its direct footprint in Sri Lanka to enhance human resources capability building and organizational consulting. • Leadership & Strategic Focus: • Oshana Dias appointed as Country Lead for SHRM Sri Lanka. • Business led by Dedeepya Ajith John (Senior Director – Consulting & BD, SHRM India & APAC) and supported by Senior Consultant Kaavya Sasidharan. • Deepens local operations beyond its ongoing association with the Association of Human Resource Professionals (AHRP). • Core Offerings & Sector Impact: • Expanded access to globally recognized SHRM-CP and SHRM-SCP certifications. • Delivery of consulting services spanning talent management, leadership development, workforce planning, and HR transformation. • Introduction of local master classes covering HR and AI, HR analytics, and change management to support workforce modernization. • Pricing & Regional Access: • Special promotional SHRM membership rate offered at US$ 49 for Sri Lankan HR professionals. • Preferential delegate rate of US$ 215 for the SHRM India Annual Conference (Nov 26–27, 2026). • Sri Lankan firms and leaders gain eligibility for the 15th SHRM HR Excellence Awards.

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📊 Central Finance Appoints Manjula de Silva as Chairman; Sellathurai Prabagar Joins Board

Central Finance Company PLC has announced key board appointments to strengthen its strategic governance and operational leadership, effective 16 August 2026. • Board Leadership Changes: • Manjula de Silva appointed as Chairman (previously Senior Director since May 2025 and Board member since July 2020). • Veteran banker Sellathurai Prabagar joins as an Independent Non-Executive Director. • Profiles & Expertise: • Manjula de Silva: Former Secretary General/CEO of the Ceylon Chamber of Commerce and ex-Managing Director/CEO of HNB Assurance PLC. Held prominent public and private sector roles, including Chairman of NITF, SEC Commission Member, and Director General of PERC. • Sellathurai Prabagar: Bring 30+ years of banking and financial sector experience. Former Chief Operating Officer and Executive Director of Commercial Bank of Ceylon PLC, with expertise in corporate governance, risk management, and cross-border expansion. • Strategic Context: • Strengthens Central Finance's leadership within Sri Lanka's non-banking financial institutions (NBFI) sector by bringing extensive expertise in regulation, corporate governance, and risk oversight.

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🏦 MBSL Announces New Board Appointments

Merchant Bank of Sri Lanka and Finance PLC (MBSL) has appointed two new Non-Executive Directors to its Board, enhancing leadership in corporate law and the banking & finance sector. • Key Board Appointments: • Mangala Niyarepola (Independent Non-Executive Director): Supreme Court Attorney-at-Law and UK Solicitor with over 26 years of experience in civil, corporate, and commercial litigation in Sri Lanka and the UK. Holds an LL.M. in Corporate Law from King’s College London and serves as Lead Counsel at Ceylits Chambers. • Sampath Perera (Non-Independent Non-Executive Director): Senior banking professional with over 20 years of experience across credit management, development lending, Treasury, and FOREX operations. Currently serves as Deputy General Manager (Development Lending & Branch Credit) at Bank of Ceylon (BOC). • Strategic Impact: • The appointments bring robust expertise in corporate litigation, regulatory compliance, credit risk management, and strategic leadership to support MBSL's governance within the Sri Lankan banking & finance market.

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🇱🇰 Sri Lanka Bids for Historic WFUNA Vice Presidency 📈

• Key Highlights: - Dr. M.M.M. Rushanudeen, Secretary-General of UNA-Sri Lanka, is contesting for the Vice President post at the World Federation of United Nations Associations (WFUNA). - Represents the first Sri Lankan candidate for this leadership position in UNA-Sri Lanka's 76-year history. - Nominated by UNA-Sri Lanka and formally seconded by the People’s Republic of China. • Assembly & Election Details: - Election will take place at the 44th WFUNA Plenary Assembly at WHO Headquarters, Geneva (August 23–30, 2026). - Contesting against candidates from 6 other nations: USA, Colombia, Iceland, Pakistan, Somalia, and Tanzania. - Requires a 2/3 majority vote from participating member countries among 100+ global delegates to secure victory. • National Context & Delegation: - The delegation heads to Geneva to bolster Sri Lanka’s international civil society presence and diplomatic reach within multilateral forums. - Accompanying delegates include National Executive Committee Chairperson V. Dharmadasa, Vice Chairman M.D. Lalith Peiris, and Member M.J.M. Irshad.

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Thushantha Karunanayake Appointed ICC Chief Country Rep. in Sri Lanka 📈

• Key Leadership Appointment: The Indian Chamber of Commerce (ICC), founded in 1925, has named Thushantha Karunanayake as Chief Country Representative for Sri Lanka. The announcement was made during the India–Sri Lanka Bilateral Delegation Visit. • Role & Objectives: Karunanayake will lead efforts to strengthen bilateral trade, promote investment, support business delegations, engage policymakers, and create cross-border strategic partnerships between Sri Lankan and Indian enterprises. • Industry Experience: Karunanayake currently heads PCL Solutions Ltd., a member of the MJF Group—the parent organization of the globally recognized Dilmah Tea brand. He brings extensive leadership background in business development, strategic planning, and international industrial solutions to drive regional economic cooperation.

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📈 Pan Asia Bank Appoints New Leadership to Drive Strategic Growth

Pan Asia Bank has officially appointed B.D.A. Perera as Chairman and Ayodhya Iddawela Perera as Deputy Chairperson, effective 3 August 2026, to strengthen its governance and long-term expansion goals. • New Appointments & Leadership Roles • B.D.A. Perera (Chairman): Succeeds Aravinda Perera, who served as Chairman for nine years. He has been on the Board since April 2021 and previously served as Deputy Chairman and Senior Independent Director. He brings over two decades of financial sector experience and currently serves as Executive Director at LB Finance PLC. • Ayodhya Iddawela Perera (Deputy Chairperson): Appointed as an Independent Non-Executive Director in April 2026. She is a veteran in the banking sector with over 36 years of experience, including her role as Managing Director of Sampath Bank PLC (2023–2025). • Strategic Context & Governance • The executive appointments aim to enhance the bank's governance framework while accelerating strategic focus on digital transformation, customer-centric innovation, sustainable finance, and operational excellence in Sri Lanka's banking & financial services sector.

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📈 Softlogic Capital PLC Appoints Kalum de Silva as Independent Non-Executive Director

• Board Appointment: Softlogic Capital PLC has appointed Kalum de Silva to its Board as an Independent Non-Executive Director to strengthen corporate governance and strategic execution. • Experience & Expertise: De Silva brings over 20 years of global expertise in financial services, private equity, M&A, and growth advisory, having served in major leadership roles across Australia and South Asia. • Key Leadership Credentials: • Former Partner at an Australian private equity firm managing A$ 230 Mn in Funds Under Management (FUM). • Founding President of the Sri Lanka and Australia Chamber of Commerce, actively facilitating bilateral trade and investment. • Current Independent Non-Executive Director at Asiri Hospital Holdings PLC and Asiri Surgical Hospital PLC within the healthcare sector. • Co-founder of the Australasian Academy in Sri Lanka's education sector. • Qualifications: Holds an MBA and Master of Professional Accounting from Queensland University of Technology, alongside CPA, GAICD, and SLID credentials.

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📱 Bharti Airtel’s Tarun Kumar Joins Dialog Axiata Board

• Appointment Details: Tarun Kumar appointed as Non-Independent, Non-Executive Director to Dialog Axiata PLC board, effective 31 July 2026. • Executive Experience: Brings over 22 years in telecommunications, including 5+ years in CXO roles. Currently National Head – Sales & Distribution at Bharti Airtel and CEO of its Tamil Nadu Circle. • Key Expertise: Strategic P&L leadership, digital transformation, commercial operations, and building high-performing teams to support corporate governance and long-term value creation. • Shareholding Context: As of 31 March 2026, Axiata Investments (Labuan) Ltd. holds a 73.75% controlling stake, followed by Bharti Airtel Ltd. at 10.36%, and the Employees’ Provident Fund (EPF) at 2.79%.

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Industry & Sector News

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Global Logistics Robots Market to Reach $91.4 Bn by 2035 📈

• Market Valuation & Growth US$ 17.8 Bn (2025) ➔ US$ 20.7 Bn (2026) ➔ US$ 91.4 Bn (2035) at a CAGR of 17.9%. Unit shipments are set to surge from ~140,000 to over 500,000 units. • Core Drivers Expanding e-commerce order volumes, compressed delivery timelines, rising warehouse labor costs/turnover, AI-driven navigation advancements, and flexible Robotics-as-a-Service (RaaS) models. • Segment & Tech Breakdown Hardware held ~75% of market value in 2025; software and services represent the fastest-growing segments. Autonomous Mobile Robots (AMRs) are outpacing AGVs with >21% annual growth. • Regional Trends Asia-Pacific leads in market size and growth, backed by e-commerce giants and automation policies. North America follows due to labor costs, while Europe is driven by regulatory mandates. • Sri Lanka Relevance Crucial structural shift for national logistics & supply chain, apparel & textiles warehousing, and ICT/BPM integration as global supply chains adopt automated ecosystems. _Source: Globaltrademag.com_

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🚢 Global Maritime Shipping Disruptions Spike Trade Costs & Inflation Risk

Severe geopolitical tensions across key maritime chokepoints are driving up shipping expenses, delaying commodity flows, and creating global inflationary risks. • Overall Impact & Global Outlook • Freight, fuel, and operational costs are surging due to forced rerouting and voyage delays. • War-risk insurance premiums are climbing rapidly across affected routes. • The World Bank projects global growth at 2.5% in 2026 with inflation around 4%, warning of mounting consumer price pressures. • Key Regional Route Disruptions • Black Sea: Attacks dropped Ukrainian port capacity to ~4.00 Mn tons/month (down from ~6.00 Mn tons). Over 57 commercial vessels hit in a single month. War-risk insurance premiums doubled from 1% to 2% of vessel value. • Red Sea & Suez Canal: Houthi attacks forced transits around Africa's Cape of Good Hope. Suez Canal traffic collapsed by 60%–64% YoY (weekly transits dropped from ~250 to <100 vessels). • Strait of Hormuz: Middle East military tensions cut daily ship transits from 130–140 down to 4–8 on critical days. Crude oil flows plummeted from 11.90 Mn bpd to ~1.70 Mn bpd, threatening global energy supplies. • Economic Implications for Sri Lanka • Increases import costs for critical national inputs like energy & fuel, raw materials, and petrochemicals. • Directly impacts supply chain costs and delivery timelines for major export sectors such as tea, apparel & textiles, and spices. • Offers potential upside for the port & logistics sector, positioning the Port of Colombo as a strategic Indian Ocean transshipment hub as ocean carriers alter trade routes.

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📈 Key Drivers of Employee Loyalty in Global Logistics Companies

• Core Retention Challenges: The global logistics and supply chain sector faces high burnout risks due to irregular hours, strict deadlines, and complex compliance regulations, making intentional retention strategies vital for sustaining performance. • Inclusivity & Culture: Cross-border operations demand inclusive leadership, cross-cultural training, and diversity programs to build strong, engaged international teams. • Personalised Appreciation: Meaningful, tailored gestures—such as milestone cards, engraved awards, and direct leadership recognition—significantly boost morale over generic communication. • Strategic Incentives: Top performers are best retained through performance bonuses, superior retirement contributions, wellness stipends, paid professional development, and flexible remote-work options. • Clear & Transparent Communication: Frequent company-wide updates, feedback surveys, and clear timeline expectations enhance employee trust and keep teams aligned with organizational goals.

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Global Trade Shifts Focus to Supply Chain Resilience 📈

• Global Shift: Supply chains are moving from pure cost/efficiency to strategic resilience to survive geopolitical tensions, climate events, and route disruptions. • Core Pillars: • Diversification: Sourcing across multiple regions, alternative ports, and freight providers to prevent single-source failure. • Technology: Using real-time tracking, digital platforms, AI, and predictive analytics for early hazard detection and visibility. • Flexibility & Inventory: Combining multimodal transport (sea, air, road, rail) and adopting strategic safety-stock models over strict lean inventory. • Sustainability: Integrating energy-efficient operations and eco-friendly logistics to mitigate long-term climate risks. • Sri Lanka's Opportunity: Proximity to major sea lanes positions the nation to strengthen port infrastructure, logistics parks, digital trade services, and modern customs to enhance its standing as a regional transshipment hub. • Local Business Impact: Key national trade sectors including tea, apparel & textiles, and ICT/BPM can build competitive resilience through supplier diversification, contingent planning, and improved shipment monitoring.

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🧬 Molecular Insights: FOXO4-DRI Peptide & Cellular Senescence

• Core Mechanisms & Research: FOXO4-DRI is a synthetic D-retro-inverso peptide investigated in aging biology for disrupting the interaction between FOXO4 and p53 transcription factors in senescent cells. • Apoptosis & Survival: By interfering with nuclear p53 retention, it aims to selectively alter survival signaling, potentially targeting persistent senescent cells for removal without affecting normal proliferative systems. • Systemic & Tissue Impacts: Research links its mechanism to broader aging dynamics, including mitigation of low-grade inflammation from the senescence-associated secretory phenotype (SASP), mitochondrial stress adaptation, and epigenetic/genomic maintenance networks. _Note: Summary based on provisional conceptual research data; non-financial/non-market study._

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📈 Winter Booking Window at Risk as Sri Lanka Tourism Delays Marketing Drive to Sept

Sri Lanka Tourism Promotion Bureau (SLTPB) has deferred its interim overseas promotional drive from August to 1 September 2026, launching first with an Australian roadshow followed by key source markets. Industry stakeholders warn that a September rollout leaves minimal time to capture crucial winter season bookings, particularly for long-haul European markets. • Arrivals & Trends • Total Arrivals: Reached 1,436,929 visitors by 13 August 2026 (down from 1,467,694 in 2025). • August Performance: Fell 5.9% YoY to 93,511 during the first 13 days of August (vs 99,406 in 2025). • July Performance: Recorded a 1.7% YoY decline to 196,845 arrivals. • Top Source Markets (YTD) • India: 358,608 arrivals (key growth buffer). • United Kingdom: 140,892 arrivals. • China: 94,890 arrivals. • Interim & Long-Term Strategy • Interim Campaigns: Rolling out sequentially in Australia, New Zealand, Germany, and the UK, followed by India, China, Russia, France, South Korea, and the Netherlands. • Global Campaign: Rs. 3.5 Bn global destination branding campaign remains on track for late 2026 or early 2027 to drive national targets of 5 million arrivals and US$ 8 Bn in earnings by 2030.

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🏥 Kandy National Hospital Receives Rs. 620 Mn Medical Equipment Upgrade 🏥

• Investment: Rs. 620 million overall outlay to upgrade public health infrastructure. • Capacity Boost: Installation of three advanced medical equipment systems. • Service Impact: Strengthens healthcare delivery by enhancing diagnostic and non-invasive treatment capabilities, benefiting regional patient care and reducing burden on national facilities. _(Note: Based on provisional data)_

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Govt. Launches ADB-Backed US$ 328 M Power Grid Modernisation Project ⚡📈

• Project Overview: The Power System Strengthening and Renewable Energy Integration Project (PSSREIP), backed by US$ 328.25 Mn in concessional funding from ADB, has commenced under Energy Minister Anura Karunathilaka to modernise national transmission networks and boost renewable energy integration. • Substation Expansions: • Homagama 132/33 kV Grid Substation: Construction launched to meet rising demand across Homagama, Kottawa, Malabe, and Horana, easing load on Pannipitiya and Kosgama sites. • Negombo 132/33 kV Grid Substation: Package 1B addition to support regional tourism, industrial activity, Bandaranaike International Airport expansion, and the proposed Aero City project. Both substations targeted for completion within 2 years. • Transmission & Grid Upgrades: Future investments include a 220/33 kV substation in Mirigama, 132/33 kV substation in Peliyagoda, a 78 km 132 kV line (Hambantota–Matara), and a 2 km underground 132 kV line linking Kelaniya-Kotugoda to Peliyagoda. • Colombo Port Connection: Work began last week on a 220 kV underground transmission cable connecting Kerawalapitiya to Colombo Port to reinforce energy infrastructure for long-term economic growth.

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📈 UNDP & Ministry Partner to Boost Sri Lanka's Industrial Transformation

The United Nations Development Programme (UNDP) in Sri Lanka and the Ministry of Industry and Entrepreneurship Development (MoIED) have signed an MoU to establish an embedded Expert Support Unit to accelerate industrial growth and SME competitiveness. • Strategic Focus: The unit will deploy multidisciplinary technical experts across SME development, industrial zone development, trade and policy, digital transformation, data analytics, skills development, and international relations. • Economic Impact: Designed to enhance export competitiveness, generate employment, and integrate local industries into global value chains through evidence-based policymaking. • Key Stakeholders: Signed by MoIED Secretary J. M. Thilaka Jayasundara and UNDP Resident Representative Azusa Kubota, in the presence of Deputy Minister Chathuranga Abeysinghe. • Implementation: Facilitates agile deployment of specialists, strengthens project management and monitoring systems, and aims to mobilize funding from private sector and development partners for sustainable implementation.

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📈 ProFood ProPack & AgBiz 2026 Set for Aug 21-23 at BMICH

Sri Lanka’s premier food processing, packaging, and agribusiness exhibition returns for its 23rd edition, driving regional trade, innovation, and B2B/B2C networking. • Event Scale & Footprint: • Expected turnout: Over 30,000 trade and consumer visitors. • Exhibition space: 450+ stalls across 6 halls. • Global presence: 50+ international participants from countries including China, India, and Germany. • Organizers: Sri Lanka Food Processors Association (SLFPA) and Lanka Exhibition and Conference Services Ltd. • SME Development & Regional Support: • Co-organised with the Industry and Entrepreneurship Development Ministry to strengthen local agribusiness and processed food value chains. • Features a dedicated SME Pavilion providing market access and feedback. • Eligible SMEs receive a 50% discount on stall fees to promote entrepreneurship and market entry.

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🌿 Yala National Park: Strategic Value of Sri Lanka's Wildlife Tourism

• Sector Context & Overview Yala National Park remains one of Sri Lanka’s most visited national parks, serving as an anchor for wildlife tourism and nature-based tourism. Positioned along the south-eastern coast, it complements Sri Lanka's broader leisure and heritage offerings, including tea country, beaches, and historic sites. • Key Highlights & Biodiversity • Status & History: Sri Lanka’s second-largest national park; designated as a wildlife sanctuary in 1900 and a national park in 1938. • Core Attractions: Famous for an exceptionally high density of Sri Lankan leopards, alongside elephants, sloth bears, wild water buffalo, jackals, and crocodiles. • Avian Diversity: Supports over 200 recorded bird species, attracting both birdwatchers and big-game safari enthusiasts. • Ecosystem Range: Features diverse habitats including dry monsoon forest, open grasslands, wetlands, lagoons, and rocky coastline. • Economic & Experiential Value • Enhances destination competitiveness for high-value international travelers seeking refined safari experiences and experiential travel. • Provides domestic safari tourism opportunities, contributing to regional tourism activity and local economic engagement. _Note: Specific financial data and visitor growth percentages were omitted in the source text._

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📈 EDB Steps Up Support for Local Jewellery Exporters

• Sector Performance & Targets: - 2025 Total Exports: US$ 334 Mn (gemstones US$ 189 Mn, diamonds US$ 127 Mn, jewellery US$ 17.8 Mn). - 1H 2026 Earnings: US$ 154.24 Mn recorded from January to June 2026. - 2030 Target: EDB aims for US$ 1 Bn in export income, supported by platforms like FACETS Sri Lanka, Gem Sri Lanka, and Gem City Rathnapura. • Key Export Markets: - Gems: Hong Kong, Switzerland, Thailand, United States, and Italy. - Diamonds: Switzerland, Israel, United Arab Emirates, Belgium, and India. - Jewellery: United States, Switzerland, United Arab Emirates, Thailand, and Australia. • Enterprise Readiness Focus: - EDB Chairman led an observation visit to Ashadi Jewellers (Pvt) Ltd (est. 1988, 330 workforce) to enhance international expansion and export readiness. - The manufacturer combines traditional craftsmanship with CAD, CNC precision engineering, laser welding, and advanced gem grading. • Major Event Milestone: - Sri Lanka Expo 2027: To be held January 14–17, 2027, at BMICH, Colombo, connecting local exporters with over 1,500 global buyers and investors.

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Financial & Investment News

📈 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.

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📈 M.A. Yaseen Invests Rs. 5 Bn in UML and RIL

• Investment Breakdown: Founder shareholder M.A. Yaseen invested Rs. 5 billion to increase stakes in United Motors Lanka PLC (UML) and R I L Property PLC (RIL) based on provisional data. • UML Acquisition: Paid Rs. 3 billion to acquire an 11.3% stake (114 million shares at Rs. 27 each) from R.R. Takahashi, raising his total holding in the automotive firm to 24%. UML share price closed at Rs. 27.10 (up Rs. 0.10). • RIL Acquisition: Invested Rs. 2 billion for a 10.6% stake (85 million shares at Rs. 24 each), crossing his personal holding to 41% in the real estate company. RIL share price closed at Rs. 25.90 (up Rs. 0.50).

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📈 SEC & CSE Launch 'A Share for Everyone, A Unit for Everyone' Initiative in Monaragala & Batticaloa

• Initiative & Outreach: The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) launched the "A Share for Everyone, A Unit for Everyone" initiative to expand capital market participation and awareness beyond the Western Province. • Forum Participation: Regional forums held in Monaragala (July 16) and Batticaloa (July 18) attracted over 500 participants. The first 400 attendees opening accounts were eligible for SEC/CSE-sponsored investment coupons to support equity investments and unit trusts. • Market & Sector Coverage: Sessions featured macroeconomic insights from Central Bank economists, alongside introductory guidance on stockbroking and the unit trust industry from leading financial firms. • Capital Market Performance: The drive comes amid a 6-year rally in Sri Lanka's capital market, with the All-Share Price Index (ASPI) surging 360% from 4,846 points in May 2020 to 22,310.80 points by end-May 2026—representing a Compound Annual Growth Rate (CAGR) of ~28.98%.

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📈 Mercantile Investments Raises Rs. 1.1 Bn via Oversubscribed Rights Issue

• Financial Services & Capital: Mercantile Investments & Finance PLC (MI Finance) has successfully raised Rs. 1.1 billion in new capital through a fully oversubscribed Rights Issue. • Capital Base & Growth: The capital infusion significantly strengthens the company's regulatory capital position, enhances financial flexibility, and expands its capacity for future growth within Sri Lanka's financial services sector. • Management Perspective: Managing Director Gerard Ondaatjie noted that the strong shareholder response reflects firm confidence in the company's long-term vision and strategy to drive sustainable value. • Key Partners: First Capital Advisory Services Ltd. managed the issue, with SSP Corporate Services Ltd. acting as the registrar.

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**Politics & Government Impact**

Uncategorized

(58)

Suspected Drug Trafficker Shiran Basik Extradited from Dubai to Sri Lanka ⚖️

• Key Action: Sri Lanka Police secured a 72-hour detention order against 48-year-old Shiran Basik following his arrest in Dubai and return to the country on August 14. • Background & Context: Suspected of being a major pharmaceutical & drug trafficking operative, his apprehension aligns with ongoing national security efforts to dismantle illicit trade networks impacting Sri Lanka's domestic safety and national economy.

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⚠️ Notice: Summary Unavailable

• Status: Unable to generate summary based on provisional network status. • Details: The source content from FT.lk could not be retrieved due to a connection timeout.

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📈 Sri Lankan Business News Update

• Data Status: Unable to process summary due to incomplete input data. • Issue: Article content from ft.lk could not be retrieved due to a connection timeout error on August 15, 2026. • Note: Update pending receipt of valid news content.

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⚠️ Data Unavailable: Could Not Extract Report

• Status: The attempt to retrieve the requested Sri Lankan business news content failed due to a connection timeout (_www.ft.lk_). • Impact: Detailed data, market performance metrics, and sector breakdowns are currently unavailable. • Note: This update is based on provisional technical error logs as of 14 August 2026. Please provide the article text directly for a complete summary.

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📈 Error Reporting: Unable to Retrieve Latest Sri Lankan Business News

• Status: The connection to the news source (_www.ft.lk_) timed out during content extraction. • Details: Failed to retrieve full text due to an HTTPS read timeout error as of 14 August 2026, 05:07 AM. • Note: Market and economic data summary is unavailable due to incomplete source data.

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⚠️ Unable to Generate Summary: Data Extraction Error

• Status: Content extraction from the source (_www.ft.lk_) timed out. • Details: No article content or financial data was retrieved. _Please provide the news text or try again shortly based on provisional data availability._

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⚠️ Data Retrieval Error: Sri Lanka Business & Economic News

• Status: Unable to generate news summary based on provisional network status. • Details: Failed to extract content from _www.ft.lk_ due to a connection timeout at 2026-08-13 08:11:05. • Note: Please provide alternative text or retry the data feed to obtain the latest updates on key sectors like tea, apparel & textiles, and ICT/BPM.

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🎶 'Swar Sangam' Concert in Colombo Marks India’s 80th Independence Day

• Event Details: The 'Swar Sangam' concert will take place on Saturday, 15 August, from 6:00 p.m. onwards at the Grand Marquee - Taj Samudra, Colombo, to commemorate India's forthcoming 80th Independence Day. • Featured Performers: The event features Indian Veena Maestro Shri. Rajhesh Vaidhya alongside Sri Lankan artist Yohani. • Cultural Significance: Curated as a musical extravaganza to reflect and strengthen the deep-rooted cultural bond between India and Sri Lanka.

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⚠️ Summary Unavailable: News Content Extraction Error

• Status: Unable to generate a market summary due to a technical error while retrieving content from _www.ft.lk_. • Details: The request timed out (connection read timeout), leaving article data incomplete and unavailable. • Note: Further analysis will be provided once full content from the source is successfully processed.

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📈 Sri Lankan Business & Economic News Update

_Note: Summary unavailable based on provisional system data._ • Status: The full news report from FT.lk could not be retrieved due to a temporary network timeout error. • Details: Content extraction for the scheduled news update timed out on August 13, 2026.

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⚠️ Data Extraction Error

• Status: The system failed to retrieve the news content from the source due to a connection timeout. • Details: Unable to establish a stable connection with www.ft.lk at 2026-08-13 06:17:06 UTC (Read timed out). • Impact: Summary cannot be generated as no underlying business, market, or economic data was provided. _Note: Please provide the text or re-try fetching the article to generate the summary._

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⚠️ Unable to Generate Summary: News Content Unavailable

• Issue: The source content could not be retrieved due to a network timeout error while connecting to the source (`www.ft.lk`). • Status: Missing data prevents an accurate, professional, and unbiased economic news summary at this time.

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Startups & Entrepreneurship

📈 EDB Drives Digital Pathways for Women Exporters

• Initiative Overview: The Sri Lanka Export Development Board (EDB), operating through the SheTrades Sri Lanka Hub, conducted an awareness programme titled "Using Social Media for Export Marketing" at the Divisional Secretariat Office, Panadura. • Knowledge & Capacity Building: Partnering with knowledge partner Foundation.lk, the event provided practical expertise in digital marketing, online business development, and social media tools to strengthen women-led enterprises and enhance their online visibility. • Market Reach & Export Growth: Targeted at women entrepreneurs seeking international expansion, the programme focused on using digital channels to connect with potential global customers, access foreign markets, and build readiness for export marketing and trade.

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🌱 EthicalX Opens Applications for 2026 Climate Innovation Cohort

EthicalX: Climate & Innovation Hub, a global initiative by Clima Trust and SLYCAN Trust, has officially opened applications for its 2026 cohort and affiliate network. Announced at the EthicalX Entrepreneurship Gathering in Colombo on August 6, 2026, the program aims to scale ethical and sustainable ventures in Sri Lanka and globally. • Overview & Key Focus: • Target sectors: Sustainable food systems, fashion & lifestyle, and creative communication. • Structure: Offers mentorship, technical support, policy linkage, and global networking opportunities. • Funding: Financial support for selected ventures, including lifestyle startups via a partnership with c.fuge. • Addressing Ecosystem Challenges: • Aims to bridge critical growth hurdles for early-stage Sri Lankan enterprises, such as limited access to finance, market restrictions, and gaps in technical expertise. • Connects grassroots entrepreneurs directly with public/private sector stakeholders and policymaking processes. • Track Record & Ecosystem Impact: • Founded in Sri Lanka in 2022, EthicalX has expanded globally to foster climate action, local economic empowerment, and sustainable diversification. • Supported alumni include local startups like Star Mushrooms and Eastern Soy Products, leveraging the hub for scaling and product development.

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📈 Ceylon Chamber to Host "Scale Up 2.0" National SME Forum 2026

The Ceylon Chamber of Commerce will host "Scale Up 2.0", the National SME Forum 2026, on 11 August 2026 at the Taj Samudra, Colombo, under the theme "Connected, Competitive, Ready to Grow". • Event Focus & Key Objectives: The forum is designed to address pressing operational challenges facing Sri Lanka's Small and Medium Enterprises (SMEs), helping them scale operations, secure financing, and expand market access. • Core Focus Areas: • Market Access: Creating pathways for SMEs to connect with larger enterprises and integrate into local and global value chains. • Standards & Competitiveness: Improving process credibility through quality standards and official certifications. • Sustainable Expansion: Enhancing investment readiness, business practices, and access to appropriate financing options. • Platform & Networking: • Features participation from policymakers, industry leaders, financial institutions, and business support organizations. • Includes a dedicated B2B networking segment for direct corporate engagement, partnership exploration, and resource sourcing.

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📈 MAS Holdings Backs Syntetica’s $30M Series A for Nylon Recycling

French deep tech startup Syntetica secured US$ 30 Mn in Series A funding to scale technology for recycling complex textile waste. The investment round was led by Bpifrance’s Ecotechnologies 2 fund, with participation from Sri Lankan apparel & textiles giant MAS Holdings, lululemon, SWEN Capital Partners, EQT Ventures, and key family offices. • Funding & Expansion: The US$ 30 Mn round will fund Syntetica's first commercial demonstration facility in France in partnership with Michelin. The plant will scale the process from laboratory testing to processing hundreds of tonnes of textile waste annually. • Technical Breakthrough: Syntetica developed a proprietary process to recycle both Nylon 6 and Nylon 6,6 together from mixed waste without prior separation, overcoming a major technical hurdle in apparel & textiles circularity. • Market & Sector Relevance: - Global nylon production reached ~7 million tonnes in 2024, but recycled nylon accounts for only ~2% of the market due to processing challenges. - Over 80% of household textile waste is currently incinerated or landfilled. Syntetica targets post-consumer waste to build circular supply chains. - MAS Holdings leverages its manufacturing expertise to scale circular material solutions, reinforcing Sri Lanka's positioning in sustainable global apparel & textiles supply chains.

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Chalinda Abeykoon: Building Sri Lanka’s Global Startup Ecosystem 📈

• Overview: Venture capitalist Chalinda Abeykoon, co-founder at nVentures, highlights the evolution of Sri Lanka’s ICT/BPM and startup ecosystem—from early government-led initiatives to cross-border venture capital investments. • Startup Evolution: • Started Spiralation, Sri Lanka’s first tech startup incubator at ICTA, aiding ~75 tech companies in securing quality certifications and training 25,000+ students in international certifications. • Organized early island-wide hackathons, connecting youth across Jaffna, Kandy, and the South to foster local talent. • Investment Strategy & Exits: • Currently manages Singapore-domiciled VC fund nVentures to facilitate institutional exits, governance, and foreign capital inflows. • Focuses on founder-market fit and high-growth potential over traditional metrics. • Enables local startups to build globally relevant software and AI products directly from Colombo. • Creating a sustainable funding cycle: early founders from Fund 1 are now reinvesting as LP investors in Fund 2 to build local wealth.

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📈 Binod Chaudhary’s 'Made in Nepal': Key Takeaways for Business Leaders

• Core Themes: Review of Nepal’s first dollar billionaire's memoir, focusing on institutional stewardship, long-term resilience, and global diversification over instant scaling. • Business & Enterprise: Highlights CG Corp Global’s evolution from local enterprise to global conglomerate via Wai Wai noodles, illustrating how regional brands can scale internationally despite economic and political instability. • Legacy & Leadership: Emphasizes structured succession planning, empowering the next generation, and maintaining national identity as a competitive advantage in international markets. • Event Note: Binod Chaudhary will speak at the Colombo Literary Festival on July 24–25, 2026.

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Politics & Government Impact [Former BASL President claims proposed amendment aims to retain select judges for two more years](https://www.youtube.com/watch?v=pna81INtIx8) This video provides additional context from a former BASL president regarding concerns over the proposed constitutional amendment to extend judicial tenure.

Global & International Business [The World View From India with Dr. Raja Mohan](https://www.youtube.com/watch?v=7Vf9U7f9kKA) This video features Dr. C. Raja Mohan discussing India's evolving economic policy, regional relationships, and geopolitics in an increasingly fragmented global landscape.

Politics & Government Impact [How India's Cockroach Party Sparked a Protest Movement](https://www.youtube.com/watch?v=C9MRKiKs06o) This video provides context on the origin of the Cockroach movement in India and examines its political impact and broader implications for youth activism across South Asia.

India’s Cockroach Movement: Key Governance & Youth Lessons for South Asia 📈

• Movement Context & Scale India’s youth-led Cockroach Movement evolved from public outrage over alleged paper leaks in the National Eligibility cum Entrance Test (NEET), taken by over 2 Mn students annually for 130,000 medical seats. Demonstrations pushed Union Education Minister Dharmendra Pradhan to resign, prompting the government to announce system-wide reforms. • Gen Z Mobilization & Digital Impact Spurred by India’s Gen Z population (over 500 Mn), the campaign shifted rapidly from digital social platforms to physical street protests in major cities. Highlights how digital connectivity lowers collective action barriers, forcing faster institutional responsiveness across South Asia. • Key Lessons for Regional Governance Meritocracy: Safeguarding fair competition in education is crucial for social mobility and preventing public discontent. Institutional Trust: Public credibility relies on execution; trust lost through examination irregularities is difficult to restore. Digital Democracy: Social media allows rapid public mobilization, making open government communication and listening vital to democratic legitimacy. • Relevance to Sri Lanka South Asia’s under-30 demographic makes up over 50% of its nearly 2 Bn population, forming the future workforce and consumer base. Sri Lanka’s educated youth share similar expectations for transparent public administration, education, and economic governance, emphasizing youth as partners in stability.

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Awards & Recognitions [National AI Awards 2026 Overview](https://www.youtube.com/watch?v=PaJr_GtaZLM) This video provides an official overview and call for applications for Sri Lanka's National AI Awards 2026.

🤖 Applications Open for National AI Awards 2026

• Event & Key Dates: Applications are open until 15 August 2026 for Sri Lanka’s flagship National AI Awards 2026, themed ‘AI Amplified’. The awards ceremony will take place on 4 October 2026 as the highlight of Sri Lanka AI Week. • Organisers & Mission: Pioneered by the Digital Economy Ministry of Sri Lanka alongside SLT-MOBITEL, the event aims to champion innovation, celebrate national benchmarks, and spotlight top achievements across industry, academia, startups, and the public sector. • Key Sector Innovations: The Industry Innovation Awards will recognise groundbreaking AI application across major national economic pillars, including: - Agriculture - Manufacturing and Industry 5.0 - Banking, Finance and Insurance - Education - Healthcare and Life Sciences - Media • Award Categories: Accolades encompass four primary streams: - National AI Trailblazer (Excellence, Leadership, Impact, Export Excellence) - Industry & Sector Excellence - Innovation & Future-Focused (Startups/MSMEs, University AI, Agentic AI, Sinhala/Tamil Localisation, Women in AI Leadership) - AI Content Creators of the Year (Educational, Video/Storytelling, Social Impact, FutureTech, Cultural Heritage & Tourism) This video provides an official overview and guidelines on how local innovators can submit their entries for the National AI Awards 2026 prior to the deadline. [National AI Awards 2026 Submission Guide](https://www.youtube.com/watch?v=PaJr_GtaZLM)

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Economic News [Sri Lanka's President presents Budget](https://www.youtube.com/watch?v=PjSywtCQlx0) This video is relevant because it reports on Sri Lanka's presidential budget announcements and the government's fiscal policy goals.

Politics & Government Impact [Court of Appeal to consider Former President Gotabaya Rajapaksa's petition](https://www.youtube.com/watch?v=Qqe4yllGb38) This video provides news coverage regarding the Court of Appeal considering former President Gotabaya Rajapaksa's petition to block his arrest.