Zero-lag Sri Lankan Business News
Stay informed while you drive
NOW PLAYING
1 / 5The Central Bank of Sri Lanka (CBSL) maintains that 2026 GDP growth and debt sustainability remain on track despite the catastrophic impact of Cyclone Ditwah. However, a global coalition of 121 economists, led by Nobel laureate Joseph Stiglitz, warns that the current debt deal is inadequate to absorb this US$ 4.10 Bn exogenous shock. Economic & Sectoral Impact • Agriculture: US$ 814 Mn in direct damage to paddy, vegetables, and livestock; posing severe risks to food security. • Apparel & Manufacturing: Production and shipments delayed due to flooding and power outages affecting 30% of the grid. • Infrastructure: Total damage estimated at US$ 1.74 Bn (42% of total losses), disrupting vital ICT/BPM and logistics hubs. • Macro Outlook: GDP growth expected to trim by 0.5%–0.7% as 2.2 Mn people face displacement and livelihood losses. Debt & Fiscal Position • Sustainability: CBSL Governor indicates IMF targets may need "inevitable" revision, but rejects calls for debt suspension. • Relief Demands: Economists call for an immediate debt service pause and genuine "solvency relief" (principal haircuts) over simple cash-flow reprofiling. • Emergency Funding: IMF has approved US$ 206 Mn via the Rapid Financing Instrument (RFI) to bridge urgent balance-of-payment gaps. Key Figures • Total Damage: US$ 4.10 Bn (approx. 4% of GDP). • Inflation: CCPI accelerated to 2.3% in Jan 2026; annual average 2026 forecast adjusted to 3.3%. • Remittances: Projected to rise 10%–15% (US$ 8.80 Bn total) as the diaspora supports reconstruction.
Listen While Driving
Real-Time Updates
Smart Playlists
• Overall Venture: Aitken Spence Hotels has officially launched Iguana Cantina, a new Mexican-themed resto-bar in Negombo. The venue is positioned as a strategic addition to the town’s hospitality & tourism landscape, focusing on "vibrant social experiences" and casual dining. • Location & Synergy: Situated directly opposite Sentido Heritance Negombo, the venue leverages its proximity to the coastline to attract both local residents and international tourists. The launch marks a refresh of the area's culinary offerings, blending Mexican culture with the local oceanfront energy. • Sector Impact: This diversification into specialized food & beverage (F&B) services aims to strengthen year-round footfall through a recurring calendar of events, including: • Weekly Ladies’ Nights and Salsa Nights. • All-You-Can-Eat Mexican Brunches. • Cultural celebrations like Cinco de Mayo and Día de los Muertos. • Strategic Positioning: According to MD Susith Jayawickrama, the move is designed to provide a "refreshed dining and entertainment experience," enhancing Negombo’s appeal as a diverse travel destination beyond traditional resort stays. 🇲🇽 _Note: Summary based on official launch reports dated February 2026._
The Colombo business and hospitality landscape sees a new addition with the opening of Ceylon Stories – Gallery Café at Marine Drive, Colombo 03. Reimagining the former ‘Central Perk’ space, the venture focuses on integrating premium Ceylon tea with local art and storytelling to enhance the tourism and dining experience. • Strategic Focus: Operates as an authorised dealer for Dilmah, emphasizing a refined and educational tea experience through guided tastings. • Art & Culture: Features a rotating "monthly artist feature" (currently showcasing Adithi Dinethya Fernando through 28 February) where select works are available for purchase. • Service Mix: Combines traditional hospitality with a shisha lounge, visual storytelling elements, and a menu featuring local staples like roti, roast paan, and isso wade. • Economic Context: Aimed at the tourism and creative economy sectors, the café serves as a platform for local artisans while positioning Sri Lankan identity for both domestic and foreign markets. Based on recent launch data.
JCB has officially reestablished its partnership with the Senok Group, appointing them as the Authorized Dealer for its entire machinery portfolio in Sri Lanka and the Maldives. This move marks a strategic revival of a long-standing collaboration in the construction and infrastructure sectors. • Market Scope & Portfolio: Senok will now represent the complete JCB lineup, including excavators, backhoe loaders, skid steer loaders, telehandlers, and compactors. This expansion supports critical sectors such as logistics, agriculture, and industrial operations. • Service Infrastructure: The partnership leverages Senok’s Henegama facility—Sri Lanka’s largest heavy machinery after-sales center—and a centralized spare parts hub in Grandpass. This ensures high spare parts availability and technical support through an islandwide service network. • Regional Footprint: Beyond Sri Lanka, Senok continues its role as the Authorized JCB Reseller in the Maldives and Ghana, reinforcing the group's capacity to manage international markets and maintain global service standards. • Economic Impact: The availability of the full JCB range is expected to drive efficiency in national infrastructure projects and engineering services by providing access to advanced diagnostic technology and specialized maintenance. Source: Provisional Company Data (February 2025/2026).
The Colombo Institute of Sales & Distribution (CISD) has signed an MoU with recruitment tech leader XpressJobs to bridge the persistent skills gap in Sri Lanka’s sales sector, one of the nation's largest employment generators. • Core Objective: Aligning structured professional education with direct employability. The partnership aims to transform sales from a perceived short-term job into a recognized, long-term professional discipline comparable to finance or IT. • Sector Impact: Addresses critical talent shortages in FMCG, banking, technology, healthcare, and logistics. The initiative targets high attrition rates by providing formal training in buyer behavior, negotiation, and ethical selling. • Dual Focus: • For school leavers: Provides foundational skills and "intent-based" entry into the workforce. • For professionals: Offers upskilling in leadership, digital competence, and data-driven decision-making. • Market Integration: CISD will integrate a live job feed from XpressJobs, connecting learners directly to vacancies in field and corporate sales across the island. • National Context: This collaboration supports national goals for productivity and youth employment by ensuring a pipeline of job-ready talent trained to modern professional standards.
• Strategic Pivot: Dialog Axiata PLC has rebranded and merged its entertainment arms—Dialog Television and Dialog ViU—under the new unified brand identity, Dialog Play. • Integrated Ecosystem: The platform consolidates local and global content across satellite TV, Smart TV apps, and mobile devices, aiming to bridge the gap between traditional home viewing and on-the-go mobile consumption. • Core Objectives: • Service Integration: Streamlines access to cinema, sports, and teledramas under the promise "Entertainment, Unlocked." • Digital Transformation: Adapts to shifting consumer habits towards personalized, on-demand experiences. • Customer Continuity: Existing subscribers will transition to the new identity with no disruption to current services. • Economic Impact: This move reinforces Dialog’s leadership in the ICT/BPM and digital media sectors, focusing on platform-led innovation to drive growth in the domestic telecommunications market. • Leadership Quote: Group CEO Supun Weerasinghe noted the shift is a "strategic evolution" to provide a consistent, flexible entertainment experience across all screens.
The nationwide rollout of the GovPay digital traffic fine payment system was successfully completed on February 3, 2026, marking a significant milestone in Sri Lanka’s digital governance and ICT/BPM infrastructure. • Overall Impact & Performance: Since the April 2025 pilot, the system has processed over 86,000 digital transactions. Total revenue collected via digital channels exceeds LKR 115 million. The project has expanded from 11 initial police stations to cover all nine provinces. • Accessibility & Integration: Payments are integrated with all leading banks and fintech applications. Accessibility significantly boosted by 55,000+ Dialog eZ Cash agents islandwide for cash-based digital payments. Enables instant on-the-spot payments and prompt retrieval of driving licenses. • Collaborative Framework: The initiative is a multi-stakeholder effort involving the Ministries of Digital Economy, Transport, and Public Security. Key technical execution supported by the Sri Lanka Police, ICTA, LankaPay, and Sri Lanka Telecom (SLT). This successful transition from a pilot phase to a national-scale operation reflects a major shift toward transparent, citizen-centric public services and digital financial inclusion.
• Overall Development: Browns Hotels & Resorts officially soft-opened Newburgh Ella – The Tea Factory Resort on January 30, 2026. This project transforms a century-old factory (est. 1903) into a luxury experiential property, supporting Sri Lanka’s target of 3.0 million tourist arrivals for 2026. • Sector & Capacity: • Hospitality & Tourism: Adds 41 luxury rooms to the Ella region, categorized as Silver, Gold, and Bronze to reflect the tea tip hierarchy. • Employment: Integrates former factory staff into the resort team, preserving local livelihoods while transitioning from industrial to service-based operations. • Strategic Highlights: • Sustainability: Operates on a fully paperless concept (digital check-in/menus) and is currently pursuing LEED and green certifications. • Tourism Infrastructure: Located strategically near the Nine Arch Bridge and Pekoe Trail, enhancing the ICT/BPM and digital-led guest experience in the hill country. • Product Diversification: Features specialized dining venues like 1903 – The Dining Room and Three Tips tea lounge, focusing on "story-led" heritage tourism to increase daily tourist spend. • Economic Context: This expansion aligns with the recovery of the tourism sector, which recorded its highest-ever January arrivals (277,327 visitors) in 2026. The resort aims to capitalize on the 10% YoY growth in arrivals by offering high-end, sustainable heritage experiences.
The China Cultural Center in Sri Lanka has launched a strategic promotion to position China as a premier winter destination for local travelers, focusing on the tourism recovery of 2026. • Event Details: The official launch is scheduled for 6 February 2026 at the Kingsbury Colombo, involving key stakeholders like the Sri Lanka Tourism Promotion Bureau and the Travel Agents Association of Sri Lanka (TAASL). • Key Focus Regions: The campaign highlights the "Ice and Snow Wonders" of Northeast China, specifically the Jilin, Liaoning, and Heilongjiang provinces, offering winter sports, hot springs, and cultural festivals. • Strategic Partnerships: Aviation: Air China and China Eastern Air are introducing specialized winter travel products. Finance & Payments: UnionPay and Bank of China (Strategic Partner) are implementing measures to facilitate seamless payments for Sri Lankan tourists in China. • Economic Context: The initiative aims to foster pragmatic cooperation between the two nations, leveraging the contrast between Sri Lanka’s tropical climate and China’s winter resources to diversify outbound travel options and strengthen bilateral trade and tourism links.
Sri Lanka’s life insurance market leader, Ceylinco Life, has successfully concluded the grand draw of its 19th Family Savari promotion, rewarding hundreds of policyholders with international and local travel experiences. • Overseas Tours: - Beijing, China: 5 families (20 people) won all-expenses-paid holidays. - Malaysia: 11 winners in total, including 10 selected families (40 people) and the top scorer of the 'Run for Savari' game. • Local Excursions: - Pearl Bay Theme Park: 283 families (1,000 people) won a full day of entertainment. - Star-Class Hotels: 4 winners from the 'Run for Savari' leaderboard won local stays. • Innovation & Engagement: - For the first time, the promotion integrated the ICT/digital space via the ‘Run for Savari’ web-game, allowing non-policyholders to participate. - The game attracted over 7,500 players, with the top scorer from Wellawatte amassing 109,458 points. • National Impact: - Since 2007, this loyalty program has benefited over 37,000 individuals from 11,000+ families. - It remains the largest rewards scheme in the life insurance sector, fostering long-term customer retention and financial protection awareness. _Note: Results are based on the final grand draw conducted in February 2026._
HNB PLC recently concluded its premium credit card campaign, awarding exclusive international travel experiences to its Club Elite and Priority Circle members in collaboration with Mastercard. • Key Rewards & Winners The campaign presented two major global experiences based on specific spending thresholds: 68th Grammy Awards (Los Angeles): Awarded to a Club Elite member, including a four-day fully-paid trip with airfare and luxury accommodation. Australian Open Semi-Finals (Melbourne): Awarded to a Priority Circle member, covering flights, match tickets, and curated experiences. • Broader Market Impact Beyond the grand prizes, the campaign drove retail activity across Sri Lanka's banking and retail sectors: Discounts up to 70% offered at 300+ partner merchants. Partner sectors included fashion, electronics, supermarkets, and travel. • Strategic Focus The initiative emphasizes HNB’s focus on the banking & finance sector's high-end segment, aiming to build long-term loyalty through "experiential rewards" that align with international benchmarks. This strategy supports the bank’s position as a premier private lender by connecting everyday card usage to high-value global events. • Corporate Outlook HNB leadership and Mastercard highlighted that such collaborations are essential for reinforcing operational excellence and service quality in Sri Lanka's competitive credit card market.
LANKATILES has officially opened its 58th showroom nationwide and its second in the historic city of Galle. Located at Matara Road, Galle, the new branch is a strategic move to tap into the region's construction and tourism-led growth. • Strategic Expansion: The opening marks a significant milestone in the company’s five-decade history, specifically targeting the Southern market’s demand for residential and luxury hospitality projects. • Product Focus: The showroom features premium collections including Majestica large-format tiles and Mosaics, designed for modern living, boutique hotels, and heritage restorations. • Economic Context: The expansion aligns with Sri Lanka’s growing tourism sector, where Galle serves as a vital hub for high-end developments and infrastructure. • Partnership Model: Operated by franchise owner Yasith Ranu Karunasekara, the outlet emphasizes collaboration with architects, contractors, and the ICT/BPM adjacent digital design community to redefine regional living spaces. The facility opened to the public on January 28, 2026, strengthening LANKATILES’ accessibility and market leadership in the manufacturing and retail sectors.
• Strategic Rebranding: Alpha Fire Services PLC (AFS) has launched its new brand logo, signaling a transition toward a future-ready organization. The move emphasizes enhanced corporate governance and operational excellence under its 35-year legacy in the fire protection and detection industry. • Regional Expansion: Managing Director Viraj Fernando announced plans to establish regional service centers across Sri Lanka to expand the company’s domestic footprint. • International Entry: The Maldives has been identified as a key export and service market. AFS is currently establishing a dedicated trading arm to supply certified fire safety equipment to meet growing regional demand in the construction & infrastructure sectors. • Operational Milestone: The company recently relocated to a fully-owned, centralized facility in Polgasowita. This move is expected to improve efficiency and reduce long-term overheads by centralizing resource management. • Industry Outlook: With Sri Lankan fire safety regulations aligning with international standards, the company anticipates a sustained rise in demand within the building materials and safety sector.
• Hospitality & Tourism: Cinnamon Bentota Beach – Signature Selection has appointed Chef Kamal Surendrajith as its new Executive Chef to lead the resort's luxury culinary operations. • Expertise: Bringing over 26 years of international experience across Turkey, Kuwait, Iraq, and Sri Lanka, his background focuses on high-end hotel environments and global flavor profiling. • Strategic Focus: The appointment aims to enhance the resort’s gastronomic offering through menu engineering, cost control, and resource optimization, directly supporting the property's beachfront identity. • Operational Impact: Beyond culinary creativity, Chef Kamal will prioritize team development and operational precision, essential for maintaining service standards in Sri Lanka’s luxury tourism sector.
CT Land Development PLC has announced the appointment of Chulantha Wickramaratne as an Independent Non-Executive Director. Wickramaratne, who served as the 41st Auditor General of Sri Lanka (2019–2025), brings extensive expertise in governance and financial oversight to the real estate sector. • New Board Appointment: Wickramaratne joins the board following his recent appointments to other major entities within the conglomerate, including CT Holdings PLC and Cargills (Ceylon) PLC. • Professional Profile: • Public Sector Leadership: Over 35 years of experience; former principal adviser to Parliamentary Oversight Committees (COPA and COPE). • Audit & Reform: Spearheaded digital audit management systems and legislative reforms within the National Audit Office. • Qualifications: Fellow of CA Sri Lanka, CIPFA (UK) qualified, and Associate of ICMA Sri Lanka. • Sector Impact: The move strengthens the governance framework of CT Land Development PLC, the owner and operator of the Majestic City complex. This follows the recent appointment of Shalindra Fernando as CEO in January 2026, signaling a strategic leadership refresh for the company’s property development and retail operations.
The Constitutional Council (CC) has unanimously approved the appointment of Samudika Jayaratne (L.S.I. Jayaratne) as the new Auditor General of Sri Lanka, effective February 3, 2026. • Ending the Deadlock: This decision resolves a 10-month vacancy in the critical oversight role since the retirement of W.P.C. Wickramaratne in April 2025. • Professional Background: Jayaratne is a career official and previously served as a Senior Deputy Auditor General within the National Audit Office. • Governance Impact: The appointment restores permanent leadership to the national audit institution, which is vital for maintaining fiscal transparency and ensuring the independence of government audits. • Selection Process: Chaired by Speaker Dr. Jagath Wickramaratne, the CC reached a unanimous consensus following the rejection of several prior nominees, including a controversial military nomination in late 2025. The move is expected to stabilize the Government Audit Department and address civil society concerns regarding the accountability of state expenditure.
The Bar Association of Sri Lanka (BASL) has finalized its leadership for the 2026/2027 term following an uncontested election process. • Leadership: Rajeev Amarasuriya secured a second term as President, while former Treasurer Nalin Chandika De Silva was elected as the new Secretary. • Transition: De Silva will succeed incumbent Secretary Chathura Galhena, who concludes a two-year tenure. • Formal Induction: The new office bearers will be officially inducted at the 52nd BASL Convocation scheduled for 28 March 2026. • Official Declaration: Results were formally announced by the Returning Officer, Solicitor General Viraj Dayaratne PC. The continuity in leadership within the legal sector is a key indicator of institutional stability, which remains vital for maintaining business confidence and the rule of law in Sri Lanka's current economic landscape.
The Women’s Chamber of Industry and Commerce (WCIC) has expressed formal concern following the resignation of Ramani Jayasundara, Chairperson of Sri Lanka’s first National Commission on Women (NCW). The Chamber urges the Government to maintain momentum on gender-related structural reforms. • Key Concerns: The WCIC warns against a potential rollback on progressive steps concerning women’s rights and the low economic participation of women in Sri Lanka. • Commission Mandate: The NCW is tasked with critical functions including: Addressing gender-based violence. Providing legal aid. Ensuring women’s participation in decision-making processes. • WCIC Recommendations: The Government must provide necessary resources and legislative power to ensure a viable commission. Urgent action is needed to restore trust and continue the agenda for female representation and employment stability. • Context: The WCIC highlights that a functional Commission is vital for addressing structural barriers that hinder women's contribution to the national economy.
• Leadership Milestone: Dr. Ruchitha Perera has been re-elected as the Honorary Co-Vice Chair of the Board of Directors for the Chartered Institute of Marketing (CIM), UK, extending his term through April 2028. • Professional Standing: First elected to the Board in 2022, Dr. Perera’s re-appointment underscores his 30+ years of expertise in marketing, business strategy, and innovation. • Key Contributions: • Specializes in digital transformation, AI, and financial sustainability within global academic and master’s programs. • Actively mentors entrepreneurs, contributing to the development of the ICT/BPM and professional services sectors. • Local Impact: Currently serves as Executive Director of The Family Planning Association of Sri Lanka (FPA), leading strategic initiatives in medical service delivery and social enterprise development. • Strategic Value: His dual role highlights the global influence of Sri Lankan professionals in high-level governance and education, bridging international standards with local community development.
Dankotuwa Porcelain PLC has officially appointed industry veteran Miyuru Rajapakshe as its new Chief Executive Officer, leveraging his extensive background in the manufacturing and export sectors. • Executive Profile: Rajapakshe is an alumnus of the University of Moratuwa (Mechanical Engineering) and holds an MBA from the University of Colombo. He is a certified Lean/Six Sigma Black Belt, specializing in operational efficiency. • Internal Growth: He has served the company for nine years, progressing from Group Head of Manufacturing Processes to Senior General Manager of Operations, and most recently, Chief Operating Officer (COO). • Strategic Experience: His career includes pivotal roles at blue-chip firms including Ceylon Tobacco Company, Ansell Lanka, De La Rue Lanka, and Unilever Sri Lanka. • Economic Impact: His leadership is expected to focus on transforming manufacturing operations into highly profitable enterprises, a key factor for Sri Lanka's tableware and ceramics export strength.
Following a period of accelerated growth throughout 2025, Würth Lanka has entered 2026 with a restructured management team aimed at sharpening execution and deepening customer focus. • Leadership & Strategy: Under CEO Suranga Kekuluwalage, the company has introduced a younger leadership team to drive agility. This shift is anchored by the "Unbeatable" framework, focusing on three pillars: customers, the sales team, and disciplined product portfolio management. • Operational Expansion: • Direct Sales Force: Expanded by 66% in 2025, signaling strong market optimism. • Product Portfolio: Currently manages 5,000–6,000 products, with 40–50 new items launched in the 2024-2025 period. • New Divisions: Launched a Trade division last year to complement existing Automotive, Construction, Metal, and Maintenance sectors. • Investment & Outlook: The company has committed to heavy investments in employee training and product development. Management reports a clear increase in revenue and market share, positioning the firm to navigate 2026 with a more diversified market presence across the construction and industrial maintenance segments.
The Sri Lanka Chamber of Garment Exporters (SLCGE) held its 28th AGM, appointing Nishantha Bakmeege (Managing Director of Screenline Holdings) as President to lead a renewed focus on policy advocacy and competitiveness for the SME segment of the apparel & textiles sector. • Leadership Transition: Outgoing President Bandula Fernando concluded a 13-year tenure, credited with navigating the industry through global market volatility and economic shocks. The new leadership includes Rumesh Perera as Vice President and Hemantha Perera continuing as Secretary General. • Strategic Focus: The Chamber's 2026 agenda prioritizes: • Digitalization, innovation, and sustainability-led manufacturing. • Strengthening the resilience of SME exporters within the national value chain. • Value addition and technology adoption to meet global sourcing trends. • Policy Advocacy: The SLCGE pledges to engage policymakers to address structural bottlenecks, including: • Access to finance and cost competitiveness. • Compliance burdens and regulatory ease. • Improving productivity to sustain Sri Lanka’s apparel competitiveness in international markets. • Economic Impact: As a vital component of the national economy, the SME apparel sector remains a critical driver for employment and regional industrial development. The new committee aims to align national export strategies with the realities of smaller-scale manufacturers.
The Constitutional Council (CC) is scheduled to meet tomorrow, February 3, at 2:00 p.m. to deliberate on the President’s re-nomination for the post of Auditor General (AG). This key oversight role has remained vacant for nearly nine months following the retirement of Chulantha Wickramaratne. • Nomination Details: President Anura Kumara Dissanayake has re-submitted the name of Senior Deputy Auditor General L.S.I. Jayarathne. This follows the CC's previous rejection of her name and the subsequent withdrawal of the nomination for W.M.K.P.A. Wickremesinghe. • Institutional Context: Despite the recent appointment of new CC members—Austin Fernando, Prof. Wasantha Seneviratne, and Ranjith Ariyaratna—a final decision remains pending. The vacancy has been temporarily filled by Acting AG Dharmapala Gammanpila, who has not been formally nominated for the permanent position despite public support from religious leadership. • Economic Significance: The AG office is a critical pillar for public sector accountability and fiscal transparency. Delays in a permanent appointment can impact the oversight of state expenditure and the efficiency of the public audit process during a crucial period of economic reform.
The Ministry of Ports and Civil Aviation has officially dismissed media reports linking the removal of former Airport and Aviation Services (AASL) Chairman, Rhasa Abeywickrama, to a dispute over a Buddhist prelate’s airport access. • Administrative Restructuring: The Ministry stated the leadership change was a strategic decision following a review on 21 January 2026. This move is part of broader shifts in the administrative structure of the aviation sector and institutional management needs. • The Permit Issue: Claims regarding a special permit for Ven. Banagala Upatissa Thero were clarified as "entirely unrelated." • A permit extension was requested on 29 December 2025. • Formal approval with "appropriate conditions" was issued by the former Chairman on 09 January 2026. • The Ministry emphasized there was no conflict between the Minister and the Chairman regarding this request. • New Protocol: Current AASL leadership has informed the Thero that future access to Bandaranaike International Airport (BIA) must be coordinated via official designated channels to ensure security standards are maintained. • National Context: These changes come at a critical time as the aviation sector faces structural reforms to improve efficiency and address institutional matters within the national transport framework.
AIA Insurance Lanka has announced the appointment of two prominent corporate leaders, Asoka Pieris and Deepthi Lokuarachchi, as Non-Executive Independent Directors to bolster its strategic growth and governance. • Strategic Focus: The move aims to integrate deep financial oversight with specialized healthcare and insurance expertise to support long-term value creation. • New Appointments: Asoka Pieris: A seasoned finance professional (CIMA, CASL) with extensive local and international experience in financial management and sustainable value creation. Deepthi Lokuarachchi: An Attorney-at-Law and Chartered Insurance Risk Manager. His background in both insurance and healthcare sectors is expected to drive AIA’s initiatives in health-related insurance products. • Market Impact: These appointments reflect a focus on diversifying board perspectives to navigate the evolving financial services and health insurance landscape in Sri Lanka.
John Keells Properties has officially launched Tea Avenue Daily Brew at its TRI-ZEN residential development in Colombo 02, enhancing its "smart living" ecosystem with exclusive on-site dining. • Overall Development: TRI-ZEN comprises three towers with 897 residential units. It is currently the largest residential project in central Colombo, designed with integrated smart home technology and a focus on urban convenience. • Newest Amenity: The Tea Avenue Daily Brew café is exclusive to residents, providing a dedicated space for casual dining and informal meetings. It features a curated menu of specialty teas and café-style offerings tailored to the residential lifestyle. • Sector Impact: This collaboration highlights a growing trend in the real estate and hospitality sectors toward "integrated urban living." By embedding local brands like Tea Avenue into residential spaces, developers are increasing the value of high-density urban housing through service-led differentiation. • Key Facilities: The project now boasts a comprehensive suite of amenities including: • Health & Fitness: Two gyms, rooftop badminton court, and a 0.5km jogging track. • Leisure: Multiple swimming pools, mini cinema, and a rooftop star-gazing sanctuary. • Services: In-house laundry, housekeeping, and 24-hour security.
Home Lands is set to execute one of the largest simultaneous residential unveilings in Sri Lanka during its 'Property Investment Roadshow 2026' on 8 February at Hilton Colombo. • Overall Scale: Launch of 1,000 brand-new resort-style apartments across four mega residential projects. • Strategic Locations: The developments are situated in high-growth hubs of Greater Colombo, specifically Rajagiriya, Thalawathugoda, Athurugiriya, and Piliyandala–Kahathuduwa. • Financial Support: Partnerships with five leading banks (Commercial Bank, HNB, Sampath Bank, NDB, and DFCC) provide up to 100% financing options and flexible payment structures to enhance accessibility. • Sector Impact: The move targets the rising demand for resort-style living and urban convenience, strengthening the real estate and construction sector's role in the national economy. • Portfolio Expansion: The event will also showcase ongoing iconic projects including Pentara Residencies (Thummulla), Bayfonte Marina (Negombo), and Oceana (Wadduwa), highlighting diversification across coastal and urban regions. This massive injection of inventory reflects a significant push in the property investment landscape, catering to both domestic homebuyers and investors seeking long-term value.
Colombo’s high-end real estate has transitioned into a mature investment phase in 2026, prioritizing performance metrics and risk management over speculative growth. • Overall Market Performance Average asking prices in Colombo’s Central Business District (CBD) rose by 48% between 2018 and 2023. While surges moderated in 2024–2025, the market remains resilient as an inflation hedge, with 2025 price increases ranging from 0.2% to 2.9%. • Sector Growth & Construction The construction sector saw a strong rebound in 2025, recording 12.2% growth in Q3 and a 10.5% cumulative expansion over the first nine months. This momentum is driving the completion of late-stage developments, which are now preferred by risk-averse investors. • Investment & Development Trends • Tier 1/Luxury: High demand for near-complete projects to avoid delivery risks. • Quality Standards: Buyers now prioritize visible, high-end finishes and branded fixtures to protect long-term resale value. • Developer Credibility: A shift toward PLC-listed developers due to stricter regulatory oversight and financial accountability. • Legal & Financial: Legal clarity, bank approvals, and flexible post-completion payment plans have become critical differentiators for savvy investors. • Regional Highlights Colombo 5 and the CBD remain top-performing regions. The real estate sector is being further bolstered by tourism recovery and increased interest from the diaspora and international markets (USA, UK, Australia).
Hatton National Bank PLC (HNB) has signed a Memorandum of Understanding (MoU) with Baili Investments Lanka Ltd to provide tailored home loan solutions for the Silk Rajagiriya mixed-development project. The partnership, valid until December 31, 2026, aims to streamline access to premium urban living for prospective homeowners. • Project Overview: Silk Rajagiriya is a high-scale development by a BOI-registered developer with Hong Kong-based backing. It features six high-rise towers, a shopping complex, a cinema, and luxury amenities including a clubhouse and indoor golf. • Construction Status: Currently at the 8th floor, with full completion projected for September 2028. • Financial Solutions: HNB will offer structured home loan options with simplified documentation and competitive terms to boost confidence in the real estate sector. • Strategic Impact: The collaboration focuses on urban modernization and community-focused living, addressing the high demand for residential and commercial integration in the Rajagiriya suburb. _Summary based on official partnership data._
Odiliya Group’s Icon V Talpe is emerging as a major landmark in the real estate and hospitality sector, attracting significant foreign capital and local interest. • Project Overview: A 17-level twin-tower development featuring 227 fully furnished, sea-facing apartments. It is uniquely positioned as the only project in the area complying with Sri Lanka Tourism Development Authority (SLTDA) requirements. • Investment Appeal: Strong demand from Sri Lankan expatriates, international investors, and foreigners. A significant portion of units are already sold or reserved. Strategically located near Galle and the Southern Expressway, enhancing its value for the tourism and leisure sectors. • Economic Impact: The project supports the diversification of the construction and real estate industries by offering a flexible ownership model (permanent living or rental), tapping into the growing demand for high-end coastal property. • Key Features: V-shaped architectural design for panoramic ocean views, infinity pool, direct beach access, and five-star hotel-style amenities.
John Keells Properties has announced that The Offices at Cinnamon Life, a key component of the landmark City of Dreams Sri Lanka, has reached 100% occupancy. This milestone highlights the surging demand for Grade-A commercial spaces within Colombo’s first fully integrated urban destination. • Tenant Profile: The 30-storey tower hosts a diverse portfolio of leading local and international corporates, with several floors sold to institutional investors. • Strategic Integration: Occupiers benefit from direct access to the Cinnamon Life and NUWA hotels, The Shoppes retail mall, and luxury residential towers, creating a seamless "live-work-play" ecosystem. • Connectivity Hub: The project is centrally located with seamless links to the Colombo Port City, the Central Business District, and major transport nodes including the railway and expressway networks. • Investment Outlook: With the office tower fully let and generating attractive rental yields, investment opportunities in the remaining The Residences at Cinnamon Life are now reported as increasingly limited. _Note: This summary is based on the latest corporate announcement by John Keells Properties._ ---
Altair Residences has reached a major legal milestone, executing over 100 individual title deeds in the last six months. This move provides owners with clear, registered legal titles in compliance with Sri Lankan property law, following the project's strategic transition to Blackstone India. • Key Governance & Management Updates • Ownership transition to Blackstone India has led to the formal constitution of the Altair Management Council, empowering residents in building governance. • Realty Management Services (RMS), a subsidiary of Overseas Realty Ceylon PLC, has been appointed as the new facility manager to ensure long-term asset stewardship. • Shareholders have recently injected approximately US$ 2 million (approx. Rs. 600 million) to fund safety, security, and aesthetic upgrades. • Strategic Outlook • The issuance of deeds is expected to accelerate in the coming months as Indocean Developers Ltd (IDPL) continues building improvements. • TWC Holdings, representing Blackstone's interests, highlighted that structured title issuance and professional facility management are critical for value creation in the real estate and luxury housing sectors.
The Government of Sri Lanka has approved calling for international investment proposals to develop high-value State land for leisure and tourism, aiming to boost urban infrastructure and foreign exchange earnings. • Frolic Island Recreational Hub (Battaramulla) The Urban Development Authority (UDA) will lease 13.57 acres across nine plots along the Diyawanna Oya. Part of the Kaduwela Urban Development Plan, this project focuses on the leisure and recreation sector. Infrastructure, including flood prevention in the Battaramulla wetland, is already finalized. • Gregory Lake Tourism Project (Nuwara Eliya) A prime 10-acre land parcel on Badulla Road has been cleared for a 50-year lease. This development targets the tourism sector, specifically designed to attract foreign travelers to the hill country. • Key Investment Details Process: Selection via international competitive bidding to ensure transparency. Strategy: Utilization of under-utilised State lands to drive urban development and economic diversification. Status: Based on official Cabinet approvals granted on January 28, 2026.
• C M Holdings PLC has entered into a Sale and Purchase Agreement with Vogue Real Estate Ltd to dispose of its property in Thalangama South. • Transaction Details: • Total Sale Value: Rs. 260 million. • Property Size: 109.20 perches (valued at approximately Rs. 2.38 million per perch). • Payment Structure: An advance of Rs. 26 million has been paid; the remaining Rs. 234 million is due by 31 March 2026. • Financial Standing: • The company reported a strong retained earnings reserve of Rs. 6.8 billion and net assets of Rs. 467 per share at the group level (as of Sept 2025). • Major Shareholder: The Colombo Fort Land & Building PLC holds a 63.49% stake. • Market Performance: Following the announcement, the share price closed at Rs. 59.60, down by Rs. 0.70. The final Deed of Transfer remains subject to the full receipt of the purchase consideration. ---
Sampath Bank PLC has partnered with Prime Lands Ltd. and Prime Lands Residencies PLC to introduce a unique financing facility aimed at easing property ownership in the real estate sector. • The Offer: Customers can access a 0% equity financing solution, removing the traditional requirement for an initial down payment on selected condominium projects. • Financing Structure: • For completed projects, the bank will finance 100% of the purchase price or loan amount. • For under-construction projects, 30% of the purchase price will be released upfront to provide financial flexibility for both buyers and developers. • Strategic Impact: This initiative addresses a primary barrier to homeownership in Sri Lanka—upfront capital—while supporting the growth of the construction and condominium markets. • Eligibility: The facility is exclusive to condominium properties developed by Prime Group that maintain an existing partnership with Sampath Bank. This collaboration leverages Sampath Bank’s financial expertise and Prime Group’s three-decade track record to create accessible pathways for middle and high-income homeowners.
The Government of Sri Lanka has launched a land donation initiative under the Rebuilding Sri Lanka programme to provide permanent housing for families completely displaced by the "Ditwah" cyclone. • Objective: Secure land for the construction of new homes for families whose properties were destroyed, focusing on restoring the social and economic stability of affected communities. • Programme Scope: A nationwide appeal for generous citizens to contribute land assets to support the national rebuilding effort. • Key Sectors: The initiative integrates housing, disaster recovery, and community development to ensure a transparent recovery process. • How to Contribute: - Website: www.rebuildingsrilanka.gov.lk - Hotline: 1800 - Fax: 011 233 1246 The government maintains a commitment to rebuilding lives to a higher standard than before the disaster. (Based on provisional government data). ---
• Project Milestone: Port City Colombo has officially transitioned from regulatory readiness to active private-sector delivery with the groundbreaking of its first residential project, "Bay One Residences Colombo." • Investment Details: Developed by ICC Port City (Pvt) Ltd, the project represents a total investment of approximately US$ 112 Mn. The development is situated on a 13,945-square-meter waterfront plot. • Residential Capacity: The complex will feature 231 luxury apartment units designed to international standards, targeting both local and global investors within the Special Economic Zone (SEZ). • Economic Impact: This move signals growing private-sector confidence in Sri Lanka’s flagship urban development project. The SEZ aims to position the nation as a competitive hub for global capital, services, and talent. • Development Status: With the first phase of infrastructure on the 269 hectares of reclaimed land completed, the project marks the physical shaping of the city’s mixed-use ecosystem.
Asia Securities projects a robust phase for Initial Public Offerings (IPOs) in 2026, driven by macroeconomic stability, regulatory reforms, and favorable monetary conditions. • Market Outlook & Drivers Low interest rates are shifting funding preferences from debt to equity, offering permanent capital without debt-servicing strains. The Colombo Stock Exchange (CSE) plans a digital listing portal and a 7-day review process to expedite market entry. Secondary market liquidity and valuation benchmarks have improved following a strong recovery post-2022 crisis. • Economic Context Government Revenue has recovered to over 15% of GDP, meeting critical debt-restructuring framework targets. 2025 marked the third consecutive year of a primary surplus, with Sri Lanka outperforming IMF targets. External debt obligations are capped at under US$ 2.5 Bn per year for 2026-2027, significantly improving sustainability. • Private Sector & Investment Private sector credit growth exceeded Rs. 200 Bn per month since mid-2025, with credit-to-GDP at 31.3%. Current investment-to-GDP stands at 27%; reaching 6% economic growth requires this to hit 30-31%. Recent success: Cable Solutions Ltd (listed Aug 2024) saw its share price more than double from Rs. 7.50 to over Rs. 15. • Strategic Benefits Listings are expected to improve corporate governance and succession planning for family-owned businesses. Emphasis remains on increasing participation from State-Owned Enterprises (SOEs) and private firms to expand market capitalization.
A 5-year analysis ending December 2025 highlights the superior wealth creation potential of equities over fixed income and real estate in the local market. • Market Performance The Colombo Stock Exchange (CSE) ASPI recorded a 5-year CAGR of ~27.28%. Capital invested at end-2020 more than tripled by end-2025. Annual gains: 41.89% (2025), 25.5% (2024), and 49.66% (2023). • Comparative Returns Fixed Income: T-bills and bank deposits averaged ~10% annually, often yielding negative real returns when adjusted for inflation and taxes. Real Estate: Hampered by high transaction costs (8–10%), low liquidity, and rental yields rarely exceeding mid-single digits. Gold: Underperformed productive assets over full cycles; globally, equities (8.1%) outpaced gold (6.7%) from 1990–2025. • Sector & Unit Trust Insights Diversified equity unit trusts saw 5-year CAGRs exceeding 20%. Balanced funds underperformed pure equities due to fixed-income "drag." Equity growth is driven by corporate earnings reinvestment and valuation normalization post-economic crisis. • Key Takeaway While fixed income is essential for liquidity, long-term wealth accumulation in Sri Lanka is most effectively achieved through equities, benefiting from compounding and business growth.
Sri Lanka enters 2026 with a strategic shift toward financial resilience, as households navigate a "cost of living crunch" despite stable inflation. Amidst a projected GDP growth of 3.2% - 5.0%, consumer behavior is evolving from impulsive spending to "intentional" daily habits to preserve disposable income. • Overall Economic Context • Inflation: Projected to average 2.8% in 2026, remaining below the Central Bank’s 5% target due to subdued demand. • Reserves: Gross Official Reserves reached US$ 6.8 Bn by end-2025, the highest since the crisis. • Exchange Rate: The LKR is under pressure, with forecasts around Rs. 307.8 per US$, raising the cost of essential imports. • Key Consumer Trends for 2026 • Loud Budgeting: A shift toward vocalizing financial boundaries, reducing the social pressure to spend and fostering shared financial values. • Micro-Saving: Adoption of "round-up" resolutions to the nearest Rupee on digital transactions—a modern "penny jar" for the ICT/BPM enabled economy. • Tactical Retail: Growth in "yellow sticker" shopping and a 24-hour "cooling-off" period for online checkouts to combat retail impulse spending. • Sector Impact • Retail & FMCG: Supermarket markdowns are reducing monthly food bills by up to 30% as price sensitivity peaks. • Banking: Increased focus on micro-savings and digital "Pay by Bank" features to mobilize domestic liquidity. • Apparel & Textiles: High-margin sectors face pressure as Gen Z consumers prioritize value and brand authenticity over fast fashion.
A "Keep It Simple and Smart" (KISS) strategy is recommended for retail investors to achieve long-term goals with minimal stress and decision fatigue. • Investment Strategy: Shift from complex stock-picking to low-cost index funds or target-date funds that automatically adjust risk based on retirement timelines. For 5-10 year goals, high-quality bond index funds or moderate-risk allocation funds are advised. • Economic Context: While the Colombo Stock Exchange (CSE) saw the ASPI gain over 40% in 2025, experts warn against "market timing." Consistent saving is emphasized as more critical than chasing record returns. • Market Performance: The CSE remains a key vehicle for wealth, with the market trading at a P/E of 10.5x. Industrials and Renewable Energy are currently leading growth, though a simple diversified approach helps mitigate volatility. • Psychological Gains: Streamlined portfolios reduce management stress and ensure easier transitions for family inheritance or shared financial management. _Provisional data indicates Sri Lanka's 2026 GDP growth is projected at 4-5% by CBSL, supporting a stable long-term outlook for simplified equity investments._
• Nations Trust Bank (NTB) has secured a US$ 70 million debt financing package from the International Finance Corporation (IFC), marking the first post-crisis multilateral debt transaction in Sri Lanka's financial sector. • Funding Breakdown: • US$ 50 million: Senior unsecured loan. • US$ 20 million: Global Trade Finance Program line. • Target Sectors: • Primary focus on Small and Medium Enterprises (SMEs), particularly women-owned businesses. • Aims to bridge the SME financing gap, which currently exceeds 20% of national GDP. • Economic Impact: • The investment signals a return of international investor confidence in the banking and financial services sector. • Supports national recovery by providing credit access to segments vital for employment and inclusive growth. • Context: Based on provisional data, this is a strategic move to address the credit shortfall for the private sector following the 2022 financial crisis.
Sri Lanka’s unit trust sector closed 2025 with strong growth, reflecting a significant shift in investor sentiment toward capital appreciation and market-linked products. • Overall Performance: Assets Under Management (AUM) grew 7.8% YoY to reach Rs. 587 Bn. The industry hit a peak of Rs. 613 Bn during the year, managed by 16 companies across 86 funds. • Sector Shifts: While fixed-income holds the largest AUM share, equity-related funds dominated new inflows with Rs. 30 Bn (vs. just Rs. 2 Bn for fixed-income). Open-ended growth (equity) funds saw a massive 79% YoY increase. • Investor Base: Total unit holders reached 143,976, a robust 25.4% YoY increase. The industry added 30,485 new investors in 2025 alone, with a 2.0% monthly growth recorded in December. • Market Trends: Investors moved away from ultra-safe money-market instruments toward medium-term growth, balanced, and sector funds, signaling a rising risk appetite and long-term focus. _Note: Based on provisional industry data for the 2025 calendar year._
Hosking Partners, Sri Lanka’s largest foreign capital market investor, highlights a rare investment window as assets trade well below their long-term potential following the economic "reset." • Market Valuation & Opportunity The scale of capital destruction has left established businesses trading below replacement costs. Foreign participation in the CSE fell sharply post-2020, creating significant valuation distortions that favor patient, long-term investors. • Sector Breakdowns • Property & Hotels: Identified as high-recovery sectors due to limited new capacity and depressed valuations. • Banking & Finance: Private credit contracted from 60% to 40% of GDP, while mortgage credit stands at a mere 2.7% of GDP, signaling massive room for expansion. • Construction & Diversified Conglomerates: Core areas where Hosking Partners deployed capital during the crisis. • Key Economic Indicators • Market Cap: Declined by ~70% in US$ terms during the downturn, allowing for acquisitions at fractions of rebuild costs. • Portfolio Growth: Hosking’s holdings have more than doubled since early 2023, aided by lower inflation and currency appreciation. • Strategic Outlook Sustained progress depends on disciplined fiscal policy and domestic bond market development. Sri Lanka is positioned to benefit from capital scarcity and potential economic integration with India, contrasting with "overcrowded" global tech themes.
WealthTrust Securities Limited (WLTH.N0000) marked a stellar entry into the equity market today, with its share price skyrocketing on the first day of trading. • Market Performance: The share closed at Rs 18.70, a massive 167.14% increase (up Rs 11.7) from its IPO price of Rs 7.00. • IPO Recap: The initial offer on 17th December 2025 was oversubscribed, raising LKR 500.84 Mn through the issuance of 71.54 Mn ordinary voting shares. • Strategic Shift: Known as a leading primary dealer in government debt, this listing on the Diri Savi Board signals a major move to diversify into the equity market. • Financial Standing: The company holds an "A- (Positive)" rating from the Lanka Rating Agency. • Broader Context: This debut follows a record-breaking 2025 for the CSE, which saw 24 new listings and ended the year with a market cap of Rs 8.068 Tn. Diversification into the equity market is expected to leverage the firm's expertise in treasury bonds to deliver enhanced value to its new shareholder base.
A robust investment strategy requires shifting from single-share ownership to diversified portfolios to mitigate macro and company-specific risks. • Risk Framework Risk is categorized into four tiers: Country risk (macro shocks), Market risk (inflation/interest rates), Sector risk (industry-level plunges, e.g., tourism), and Company risk (governance or debt issues). • Asset Class Breakdown • Equities: Vital for long-term wealth. Export-oriented stocks offer a natural currency hedge for the Sri Lankan context. • Fixed Income: Bonds, Treasury Bills, and corporate debentures provide stable, predictable income backbones. • Cash/Alternatives: Money market funds offer liquidity (optionality), while real estate and gold act as inflation buffers. • Life-Stage Allocation • Growth Phase: Younger investors may lean toward 70% equities, 20% fixed income, and 10% cash/alternatives. • Stability Phase: Retirees should prioritize capital protection, shifting toward 60% fixed income and 30% equities. • Key Takeaway Resilience is built through diversification across apparel, banking, and consumer staples to offset concentration risk. Discipline and periodic rebalancing are more critical than market timing.
Shares of WealthTrust Securities Ltd (WTS) officially commence trading on the Colombo Stock Exchange (CSE) today, Jan 7, 2026, following a highly successful Initial Public Offering (IPO). • IPO Highlights: The issue offered 71,548,244 ordinary voting shares at Rs. 7.00 per share, successfully raising approximately Rs. 500.8 Mn. • Investor Demand: The IPO saw exceptional interest, being oversubscribed by 14.9 times within minutes of opening. It attracted over 10,000 applications across all investor categories. • Market Entry: WTS will trade under the ticker symbol “WLTH-N-0000” on the Diri Savi Board. • Strategic Use of Funds: Proceeds are earmarked to bolster the company’s core capital base. This expansion aims to mitigate interest-rate risks and scale its Government securities trading portfolios. • Sector Role: As a licensed Primary Dealer and debt stockbroker/dealer, WTS is a key intermediary in Sri Lanka’s capital markets, specializing in the trading and distribution of government debt.
High net worth investor Rayynor Silva has further solidified his position in the banking and financial services sector by increasing his stake in Hatton National Bank PLC (HNB). • Transaction Details: Silva acquired 3.5 million shares of HNB at Rs. 422.00 per share, totaling an investment of Rs. 1.4 billion. • Ownership Growth: This acquisition represents approximately 0.8% of the bank, raising his total holding in HNB to 1.5% (6 million shares). • Market Activity: HNB recorded a total turnover of Rs. 1.5 billion during the session, with the share price closing at Rs. 422.25 (down by Rs. 2.50). • Strategic Portfolio: This move reinforces Silva's aggressive diversification across the Sri Lankan banking sector, where he holds significant interests: • Sampath Bank: 10% • DFCC Bank: 9.8% • Seylan Bank: 5% • Commercial Bank: 1%
The Colombo Stock Exchange (CSE) witnessed a historic trading session today, with turnover hitting a record Rs. 11.11 Bn. The market opened with strong bullish momentum, as the ASPI gained over 100 points in early hours before settling at 23,851.52. Key Market Indices & Performance • ASPI: Significant intra-day volatility with strong investor participation. • S&P SL20: Rose 5.47 points to close at 6,602.81. • Market Breadth: 131 companies closed higher, reflecting broad-based gains. Sectoral & Individual Highlights • Capital Goods & Diversified: John Keells Holdings (JKH) dominated the floor with a massive Rs. 4.31 Bn turnover, driven by high-value crossings. • Banking: Hatton National Bank (HNB) and Sampath Bank showed high activity, with HNB contributing Rs. 1.51 Bn to the daily total. • Telecommunications: Dialog Axiata was among the top positive contributors to the index performance. Market Drivers • The surge in turnover was primarily fueled by significant institutional interest and large-scale crossings. • Sustained investor confidence in blue-chip counters continues to support market liquidity and high transaction volumes. _Note: Data based on provisional market closing reports for February 05, 2026._
The National Sales Average (NSA) for tea eased in January 2026, facing downward pressure across all elevations in US Dollar terms. • Overall NSA Performance: The January NSA stood at Rs. 1,164.54 (US$ 3.76). This reflects a month-on-month (M-o-M) drop of Rs. 37.04 (US$ 0.13) and a year-on-year (YoY) decrease of Rs. 20.89 (US$ 0.24). • Elevation Breakdowns: - High Grown: Averaged Rs. 1,143.12 (US$ 3.69). While it saw a M-o-M decline, it recorded a YoY rupee gain of Rs. 37.46, though the USD value slipped by $ 0.04. - Medium Grown: Recorded the sharpest M-o-M decline of Rs. 61.49 (US$ 0.20), averaging Rs. 987.40 (US$ 3.19). YoY, this sector fell by Rs. 50.65. - Low Grown: Averaged Rs. 1,221.63 (US$ 3.95), down Rs. 36.62 M-o-M and Rs. 33.97 YoY. • Market Outlook: According to Forbes & Walker Research, realized prices remain under pressure. Notably, all elevations recorded negative variances in US Dollar terms compared to January 2025, despite some mixed movements in rupee terms. This data is based on provisional research findings.
Senthilverl Holdings Ltd. has significantly increased its interest in Colombo Dockyard PLC (CDPLC) following a series of strategic share purchases on 30 January 2026. • Transaction Details: The holding company acquired over 14.1 million shares at prices ranging from Rs. 149.25 to Rs. 155.25. This move raised its total stake to 12.20% of the issued share capital, up from 8.63% (34.1M shares) recorded just a day prior. • Market Impact: Following the disclosure, CDPLC’s share price rose by Rs. 6.25 (4.3%) to close at Rs. 152.00, generating a daily turnover of Rs. 405.2 million. • Strategic Shifts: This local consolidation follows a major foreign entry earlier in January, where India’s Mazagon Dock Shipbuilders Ltd (MDL) acquired a 41.73% stake for approximately Rs. 6.6 Bn (US$ 21.3M). MDL secured 164.9M shares via the unsubscribed portion of a 9:2 Rights Issue. • National Context: The equity infusion by both local and Indian strategic partners is critical for the shipbuilding & marine engineering sector. It aims to stabilize CDPLC’s financial health—previously flagged for going concern issues—and integrate Sri Lanka more deeply into regional maritime supply chains. • Financial Standing: Based on provisional data from end-September 2025, the company reported assets of Rs. 46.21 per share.
• Overall Liquidity: Net liquidity surplus surged to Rs. 266.13 Bn on Tuesday, the highest level since January 2021 and a post-2022 crisis record. A massive Rs. 266.33 Bn was deposited at the CBSL Standing Deposit Facility Rate (SDFR) of 7.25%. • Treasury Bill Auction: Yields dropped for the 3rd consecutive week across all maturities. - 91-day: 7.80% (down 4 bps) - 182-day: 8.17% (down 9 bps) - 364-day: 8.33% (down 3 bps) The auction raised Rs. 89.82 Bn (74.85% of the Rs. 120 Bn offered) despite being undersubscribed. • Secondary Bond Market: High liquidity pushed yields lower on the "belly end" of the curve (2029-2033 tenors) as investors sought higher carry returns. Active trading seen in banking & finance related instruments, with the 2028 maturity trading between 9.02% - 9.16% and 2033 maturity at 10.60% - 10.65%. • Forex Market: The LKR showed slight appreciation against the Greenback, with the USD/LKR spot contract closing at Rs. 309.45/309.55 compared to the previous close of Rs. 309.55/309.65. _Note: Based on data from Wealth Trust Securities and CBSL._
Asian and global markets are experiencing significant turbulence as AI-driven disruption fears hit the software sector, while geopolitical tensions in the Middle East drive a rebound in commodities. • Global Market Wobble Global equities are on "shaky ground" following a sell-off in U.S. and European software and data analytics sectors. This stems from fears that advancements in AI (notably Anthropic’s new agents) could replace traditional software. Asian markets, including Japan’s Nikkei (-1.23%) and Taiwan (-0.68%), also dipped, though the region's focus on hardware manufacturing provided a partial buffer. • Oil & Energy Surge Global oil prices jumped over 1% (Brent at US$ 68.03) following military escalations involving U.S. and Iranian forces in the Strait of Hormuz—a critical waterway for Asian energy imports. This follows a recent Rs. 2 per litre cut in local fuel prices by CPC (Octane 92 at Rs. 292), which may face upward pressure if global trends persist. • Gold & Precious Metals Gold has staged a sharp comeback, reclaiming the US$ 5,000 per ounce level (+1.5%). Locally, this triggered a spike of approximately Rs. 12,000 per sovereign. • 24-Carat Gold: Rs. 380,000 • 22-Carat Gold: Rs. 349,000 • Economic Implications The volatility is exacerbated by the nomination of Kevin Warsh as U.S. Fed Chair, signaling a potential balance sheet shrinkage. While the Colombo Stock Exchange (ASPI) recently saw moderate declines, the local ICT/BPM sector remains a focal point for long-term AI-related structural shifts.
The Colombo Bourse recovered yesterday, snapping a three-session decline as activity from high net worth investors (HNWI) pushed indices into the green. • Market Performance: The ASPI rose by 0.22% (52.82 points) to close at 23,734.50, while the S&P SL20 edged up slightly to 6,597.34. • Turnover & Volume: Total market turnover reached Rs. 8.24 Bn with 276.9 million shares traded. Notably, crossings accounted for 49.4% of the day’s total turnover. • Sector Highlights: • The Banking sector dominated turnover (43%), led by Commercial Bank (COMB) which contributed Rs. 3.2 Bn (38.9% of total turnover). • Capital Goods and Diversified Financials collectively contributed 26% to the daily turnover. • Top gainers driving the index included Colombo Dockyard (DOCK), Teejay Lanka (TJL), and Ceylon Tobacco Company (CTC). • Investor Sentiment: Market activity was characterized by strong HNWI participation, though retail interest remained subdued. The session showed limited volatility as early gains moved into a consolidation phase. • Foreign Interest: Foreign investors remained net sellers with a net outflow of Rs. 1.3 Bn for the day. This brings the YTD foreign net outflow to Rs. 8.5 Bn.
• Auction Overview: The Central Bank of Sri Lanka (CBSL) has announced a Rs. 120 Bn Treasury Bill auction for today. The offer includes Rs. 30 Bn (91-day), Rs. 55 Bn (182-day), and Rs. 35 Bn (364-day) maturities. Notably, the total offer is below the estimated maturing volume of Rs. 137.17 Bn. • Yield Trends: Previous auction results show a downward trend for the second consecutive week. • 91-day: 7.84% (down 9 bps) • 182-day: 8.26% (down 10 bps) • 364-day: 8.36% (down 11 bps) • Market Liquidity & Demand: The government securities market remains buoyant with strong investor demand. Last week’s auction was oversubscribed, and current net liquidity surplus stands elevated at Rs. 212.54 Bn. Secondary market activity was healthy, specifically focusing on 2029 maturities and short-term bills. • Currency Movement: The Sri Lankan Rupee (LKR) showed slight depreciation against the US Dollar. Spot contracts closed at Rs. 309.55/309.63, compared to the previous close of Rs. 309.25/309.35. Daily trade volume for USD/LKR was recorded at $ 103.75 Mn. • Interest Rates: Overnight call money and Repo rates remained stable at 7.70% and 7.75% respectively, reflecting consistent conditions in the banking and finance sector.
The Colombo Stock Exchange started the month in the red, with benchmark indices retreating despite maintaining healthy market participation levels. • Overall Market Performance • ASPI: Dropped 130.63 points (0.55%) to close at 23,681.68. • S&P SL20: Fell by 43.95 points (0.66%) to settle at 6,597.20. • Turnover: Recorded at Rs. 5.17 Bn (approx. US$ 16.7 Mn), a decrease from the previous session's Rs. 9.19 Bn. • Sector & Stock Highlights • Capital Goods: Emerged as the most active sector, contributing Rs. 2.1 Bn to the daily turnover. • Banking: Commercial Bank (down 1.0%) announced plans to raise Rs. 20 Bn via Basel III-compliant debentures. • Manufacturing & Industrials: Colombo Dockyard saw a sharp decline of 5.97% to Rs. 145.00 following recent stake acquisition news. • Deltas: Major negative contributors included Ceylinco Holdings, Melstacorp, and Commercial Bank. • Investor Sentiment • Foreign investors were net sellers (Rs. 453.1 Mn), while domestic participation remained the primary driver of liquidity. • The downturn follows a strong January where the ASPI gained 5.25%, suggesting a period of short-term profit-taking as the market enters the new month. _Note: Based on provisional market data for February 02, 2026._
JP Morgan has issued a strongly bullish forecast for gold, projecting prices to reach US$ 6,300 per ounce by the end of 2026. This comes despite recent volatility, where bullion fell over 5% on Monday to US$ 4,677.17/oz, retreating from a record high of US$ 5,594.82. • Core Drivers: The rally is powered by a "structural diversification trend," with central banks and private investors shifting from paper assets to real assets. • Institutional Demand: JP Morgan forecasts central bank purchases to reach 800 tons in 2026, maintaining a high floor for the market. • Silver Outlook: While silver fell 6% to US$ 78.90/oz (down from its US$ 121.64 peak), analysts expect a support floor between US$ 75–US$ 80/oz. • National Context: For Sri Lanka, the global surge significantly impacts local jewelry and investment sectors. In late 2025, local 24K gold reached a historic Rs. 410,000 per sovereign, reflecting the 66% YoY global gain in 2025. _Note: Forecasts are based on current market trends and provisional demand data for 2026._
• Overall Figures: Foreign holdings in rupee-denominated Government Securities saw a net inflow of Rs. 6.63 Bn, bringing the total to Rs. 146.56 Bn—the highest level since November 2023. • Liquidity & Rates: Market liquidity reached a five-year high of Rs. 233.13 Bn. This surplus pushed inter-bank call money and repo rates down to 7.70% and 7.72% respectively, compared to December highs of over 8%. • Market Performance: The Secondary Bond market saw robust activity with yields trending lower, particularly in the 2029–2037 segment. Treasury Bill auctions were fully subscribed, raising Rs. 137.50 Bn amid strong demand. • Key Indicators: • Inflation: January CCPI recorded at +2.3%, remaining well below the Central Bank’s 5.0% target. • Currency: The Sri Lankan Rupee (LKR) appreciated against the US Dollar, closing the week at Rs. 309.25/35 vs. the previous week’s Rs. 309.76. • Bond Auctions: Successfully raised Rs. 179.06 Bn (87.35% of offer), with weighted averages aligning with or falling below market rates.
John Keells Stock Brokers (JKSB) anticipates the All Share Price Index (ASPI) will reach 28,000 this year, driven by recurring earnings growth and stable macroeconomic reforms. • Market Performance & Valuation: The ASPI stood at 23,812 as of Friday, marking a 115% increase since September 2024. Market coverage indicates trading at 10.8x FY26E earnings, with a forward expectation of 9.2x for FY27E. Increased foreign participation and IPO activity are expected over the next 2-3 years due to attractive valuations. • Macroeconomic Outlook: GDP Growth: Forecasted at 4-5% for 2026. Inflation: Expected to remain muted at 4-5% in the second half of 2026. Fiscal Health: Primary fiscal surplus projected at ~4%; Revenue-to-GDP expected to rise from 15.6% to 16%. Credit & Consumption: Private credit growth is maintaining a rate of Rs. 200 Bn per month. • Key Economic Drivers: Sustained IMF program reforms and fiscal discipline. Growth in digitization and capital market deepening. Normalization of profit margins following the previous hyperinflation crisis.
The Association of Public Finance Accountants of Sri Lanka (APFASL), the public sector wing of CA Sri Lanka, successfully concluded the 9th Best Annual Reports and Accounts (BARA) Awards on 5 February 2026. The event highlighted a significant shift toward transparency and international reporting standards within government institutions. • Overall Participation: A total of 260 public entities competed for honors, reflecting a strong commitment to good governance and fiscal discipline. • Key Winners: 45 entities were recognized as top winners for excellence in financial reporting, while 187 institutions received Compliance Certificates. • Sector Highlights: The competition saw exceptional participation from Provincial Councils and Local Authorities, signaling improved reporting quality across all tiers of government. • Economic Context: Officials emphasized that transparent reporting and ethical stewardship are critical to Sri Lanka’s ongoing reforms and the rebuilding of institutional trust. The awards serve as a benchmark for strengthening financial accountability and performance in the public sector, supported by over 600 finance professionals in attendance.
The Institute of Policy Studies of Sri Lanka (IPS) has announced the 2026 cycle of its prestigious research grant, targeting high-potential undergraduates to foster socio-economic research and evidence-based policy discourse. • Grant Details & Benefits: Total Award: Rs. 200,000 (one-time payment). Internship: A 3-month placement at IPS with access to senior researchers and institutional resources. Support: Assistance for presenting findings at local conferences and workshops. • Eligibility Criteria: Open to 4th-year undergraduates (or those entering 4th year in 2026). Field of Study: Economics or related subjects at UGC-approved institutions. Research Scope: Must be independent of final year projects and demonstrate high policy relevance and originality. • Selection Process: Evaluation based on feasibility, creativity, and policy impact. Shortlisted candidates (3) will present at IPS before final selection. Deliverable: A Policy Discussion Brief must be produced within six months. • Key Deadlines: Submission Deadline: 31 March 2026. Finalists Announced: 31 May 2026. Grant Recipient Named: 23 June 2026. This initiative continues to support the development of young professionals in the ICT/BPM and research sectors, contributing to Sri Lanka’s national development goals.
Bajaj has been conferred the prestigious Superbrands Sri Lanka Status for 2025, reinforcing its four-decade dominance in the local automotive market. This global recognition highlights the brand’s exceptional performance, quality, and consumer trust within the transport and mobility sector. Key Performance Highlights: • Market Leadership: Bajaj remains the #1 brand in both the motorcycle and three-wheeler segments in Sri Lanka, a position held consistently for over 40 years. • Infrastructure: Distributed via David Pieris Motor Company (DPMC), the brand maintains an extensive network of over 2,000 touchpoints islandwide for sales, service, and spare parts. • Brand Loyalty: Previously named Sri Lanka’s ‘Most Loved Motorcycle Brand’ by Brand Finance Lanka for five consecutive years (2019–2023). Strategic Impact: • Economic Role: The brand is central to Sri Lanka's last-mile connectivity and small-scale logistics, providing essential mobility for millions. • Future Readiness: The award underscores DPMC’s focus on evolving mobility needs and innovative product portfolios, including recent expansions into sustainable transport solutions like electric vehicles.
• Overall Performance: INSEE Sanstha dominated the 2025 industry awards, securing top honors for quality, sustainability, and innovation, reinforcing its position as the market leader in the construction sector. • Key Accolades: • SLIM Kantar People’s Awards: Won ‘People’s Housing and Construction Brand of the Year’ for an unprecedented 14th consecutive year. • Sustainability: Named ‘Sustainable Cement Brand of the Year’ by the Ceylon Institute of Builders (CIOB) and received the ‘People’s Pinnacle – Best Cement Brand of the Year 2025’. • Certifications: First in Sri Lanka to achieve ‘EcoLabel’ (NCPC) and Environmental Product Declarations (EPD) for its entire portfolio, alongside a 5-Star Green Label certification. • Strategic Impact: As the country’s only manufacturer with an integrated cement plant, INSEE’s focus on Portland Composite Cement (PCC) and blended technology supports Sri Lanka’s transition toward greener construction practices and low-carbon infrastructure. • Industry Context: With a 55-year heritage, the brand’s dominance reflects strong consumer trust among builders and engineers, critical for national infrastructure development and the domestic manufacturing economy.
Sri Lanka’s longest-standing private life insurer, Union Assurance PLC, has secured the Silver Award in the Life Insurance category at the SAFA Best Presented Annual Report Awards 2024. The recognition, awarded for its 2024 Annual Report “Folds of Value,” highlights excellence in financial reporting, transparency, and corporate governance in South Asia. • Regional Milestone: This Silver Award is the highest recognition earned by a Sri Lankan company in the Life Insurance segment at this year's ceremony held in Islamabad. • Financial Strength: As of end-September 2025, the company maintains a robust Market Capitalisation of Rs. 46.2 Bn and a Life Fund of Rs. 91.1 Bn. • Corporate Context: A subsidiary of John Keells Holdings PLC, the company operates an island-wide network with over 3,000 employees focusing on health, investment, and retirement solutions. • Industry Leadership: The award underscores the company's commitment to international financial communication standards and its role in the evolution of the local insurance sector.
• Hospitality Sector Leader: Heritance Hotels and Resorts, the flagship brand of Aitken Spence Hotels, has been officially recognized as a 'Superbrands Sri Lanka’s Choice 2025'. • Selection Process: The status is awarded by invitation only following an independent evaluation by the Superbrands Council, which assesses brand excellence, market differentiation, and consumer trust. • Brand Strength: The recognition highlights Heritance's commitment to experience-led hospitality and its role as the custodian of the largest portfolio of hotels designed by legendary architect Geoffrey Bawa. • Regional Footprint: The brand operates across diverse geographical regions in Sri Lanka and includes the flagship Maldives property, Heritance Aarah, reinforcing its tourism and export services footprint. • Strategic Impact: This accolade underscores the brand's ability to command a premium in the market through a focus on sustainability, tropical modernism, and wellness, positioning it as a regional benchmark for responsible exclusivity. • Leadership Note: Leadership at Aitken Spence PLC emphasized that the award validates their long-term commitment to design integrity and authentic hospitality in alignment with evolving global travel trends.
Samsung has been conferred the prestigious Superbrands – Sri Lanka’s Choice 2025 award in the consumer electronics category. This recognition highlights the brand’s dominance in the local ICT/BPM and technology sectors, driven by high consumer trust and continuous innovation. • Brand Leadership: The award solidifies Samsung’s position as a market leader in Sri Lanka. Globally, the company has maintained its status as the No. 1 TV manufacturer for 19 consecutive years, a trend reflected in the strong local demand for its premium Neo QLED and OLED ranges. • Market Presence: Samsung operates via a robust island-wide retail network through major distributors including Singer, Singhagiri, Damro, and Softlogic. This extensive footprint ensures high accessibility and after-sales support across the country. • Strategic Value: To enhance local affordability, the brand has partnered with leading banks to offer flexible payment plans, facilitating broader access to smart living solutions and energy-efficient appliances. • Product Reliability: A key differentiator in the local market is Samsung’s 20-year warranty on Digital Inverter Motors and Compressors, emphasizing long-term value for Sri Lankan households. • Technological Integration: The brand is aggressively expanding its connected ecosystem via the SmartThings platform and Knox Security, catering to the growing demand for secure, automated home environments.
McLarens Lubricants Ltd, the authorized distributor for Mobil Lubricants, has secured a top honor at the People’s Pinnacle Awards 2026. The brand was recognized for its leadership in the lubricants industry, reflecting high consumer trust and market presence. • Award Recognition: Mobil Lubricants was crowned "Best Lubricants Brand of the Year 2025" at a ceremony held at Shangri-La Colombo. • Market Position: McLarens Lubricants currently operates as Sri Lanka’s largest importer of finished lubricants, maintaining a partnership with ExxonMobil for over 25 years. • Key Sectors: The brand supports critical economic drivers including maritime, industrial manufacturing, and the automotive sector. • Service Coverage: The company maintains islandwide availability, providing essential support to local logistics and motorsport development even during economic recovery periods. > These accolades, organized by the MUGP Organisation, are based on consumer voting, highlighting brand reliability and product performance across the energy and transport sectors.
Allianz has retained its title as the world’s leading insurance brand in the Interbrand Best Global Brands 2025 ranking, marking seven consecutive years of leadership. • Brand Valuation & Growth: The brand achieved its highest-ever value of US$ 28.2 Bn, reflecting a record-breaking 20% increase from the previous year’s US$ 23.5 Bn. • Global Standing: Allianz moved up two positions to rank No. 27 among the top global brands across all industries. • Strategic Drivers: The growth is attributed to strong financial performance and a consistent global brand strategy centered on trust and innovation. • Local Context: Allianz Insurance Lanka Ltd. operates as a fully owned subsidiary of the Munich-based global giant, contributing to the local financial services and insurance landscape through its parent company's expertise.
The Sri Lanka Institute of Directors (SLID) and the Association of Chartered Certified Accountants (ACCA) will host the first-ever National Corporate Director Awards 2025 tonight in Colombo. The initiative aims to enhance board professionalism and align Sri Lankan businesses with global best practices. • Event Details: Scheduled for 6:30 p.m. at Cinnamon Grand Colombo, featuring British High Commissioner Andrew Patrick as Chief Guest and SEC Chairman Prof. D.B.P.H. Dissabandara as Guest of Honour. • Core Objectives: To celebrate directors demonstrating leadership and integrity, specifically focusing on strengthening corporate governance to build resilient institutions and attract quality investment. • Economic Impact: By promoting financial stewardship and sustainable value creation, the awards seek to enhance national credibility and contribute to Sri Lanka’s long-term economic progress. • Key Partnerships: The collaboration with ACCA integrates global standards into the local finance and professional services sector, reinforcing the link between ethical leadership and economic stability.
The global film industry marks a historic milestone as the horror film Sinners secures a record-breaking 16 Oscar nominations, signaling a robust era for high-production content with potential ripple effects for Sri Lanka's emerging ICT/BPM and creative services. • Market Impact & Performance: Sinners broke the previous 14-nomination record, outperforming its closest competitor, which holds 13 nominations. This surge in high-value global production aligns with Sri Lanka’s 2025-2026 push to modernize its cinema industry, currently valued at approximately Rs. 10 Bn. The domestic box office showed strong recovery in 1H 2025, reaching Rs. 1.5 Bn, a massive leap from just Rs. 7 Mn in early 2024. • Sectoral Context (Creative & Digital): ICT/BPM and Creative Services: Increased global demand for high-end content supports Sri Lanka's strategy to move beyond service-outsourcing to original IP, such as the country's first 2026 global animated feature release. Service Exports: The ICT/BPM sector grew by 26.71% in late 2025, generating US$ 154.50 Mn monthly, highlighting the potential for Sri Lanka to capture more VFX and post-production contracts. • Key Outlook: The 2026 Budget aims for 7% GDP growth, focusing on digitalization and export diversification. Industry stakeholders are advocating for the removal of import quotas on foreign films to utilize the US$ 30 Mn+ (Rs. 10 Bn) invested in modern 4K and IMAX multiplexes.
CleanTech has marked a milestone in the nation's circular economy by becoming the first company to receive the Good Plastic Standard (GP 5040: 2025) certification. This national benchmark verifies the quality, sustainability, and ethical processing of post-consumer recycled plastic pellets. • Strategic Impact: The certification validates CleanTech's recycled materials as reliable alternatives to imported virgin plastics, supporting the domestic manufacturing and packaging sectors. • EPR Compliance: This milestone provides a credible local pathway for FMCG companies to meet Extended Producer Responsibility (EPR) obligations through verified recycled content and traceable downstream processing. • Sector Highlights: • Recycling & Waste Management: Shifts the industry from basic collection to high-grade, certified material production. • Sustainability: Enhances Sri Lanka's profile in the global green economy by diverting waste from landfills and ecosystems. • Supply Chain: Enables brands to integrate ethically sourced recycled materials into their supply chains with confidence. • Future Outlook: As a certified industry leader, CleanTech is positioned to drive demand for ethical recycling, reducing reliance on imports and fostering a more resilient, self-sustaining circular economy.
Private sector stakeholders have raised concerns over a sudden halt in cargo clearance yesterday, as officers at Sri Lanka Customs suspended work to attend a union meeting. • Overall Impact: Import and export operations effectively came to a standstill starting around 1:00 p.m. While Colombo-based officers attended the meeting, outstation staff reportedly awaited instructions, causing a localized paralysis of trade logistics. • Operational Update: A Customs spokesperson confirmed a two-hour afternoon meeting but stated that duties resumed shortly after. The specific agenda of the union meeting remains undisclosed by the administration. • Industry Concerns: The private sector warned that even brief stoppages trigger a "domino effect," resulting in: • Increased demurrage and terminal charges. • Disruption of tightly scheduled supply chains. • Delays for time-sensitive shipments, affecting the apparel & textiles and perishable sectors. The incident underscores the continued vulnerability of Sri Lanka’s external trade to internal administrative disruptions, despite ongoing efforts to enhance border agency predictability.
The Advocata Institute has strongly cautioned the government against reviving vehicle import permits, warns that exempting high-ranking officials threatens reform credibility and public trust. • Current Status: Despite a broader import ban affecting ordinary citizens, 1,900 permits have been issued to senior officials under concessional schemes, with 563 permits issued in 2025 alone. • Budget 2026 Commitment: President Anura Kumara Dissanayake declared an end to the "permit culture" during the 2026 Budget, yet recent discussions regarding retired officials suggest potential reversals. • Fiscal Impact: Duty-free permits represent significant revenue loss. Historical data shows tax waivers per MP have ranged from Rs. 66 million to Rs. 98.5 million in today’s terms. • The "Privilege" Gap: While officials seek exemptions, the general public faces some of the world's highest effective taxes on personal transport vehicles, with duties ranging from 125% to 250%. • Recommendations: • Abandon all plans to allow imports under existing duty-free permits. • Replace discretionary perks with transparent, on-budget salary structures. • Legislate a permanent prohibition to prevent future policy reversals. Based on provisional parliamentary statements and 2026 Budget proposals.
The Cabinet of Ministers has officially cleared the Renewable Energy Resources Development Plan 2025–2030. This strategic framework is designed to transition the national grid toward sustainable sources, ensuring energy security and long-term climate resilience. • Core Targets: Aiming to meet 70% of national electricity demand via renewable energy by 2030, with a long-term goal of total carbon neutrality by 2050. • Strategic Focus: Identifying and prioritizing suitable land for green projects and establishing a comprehensive Renewable Energy Map and Renewable Energy Gardens across the island. • Diversification: Key emphasis on developing floating solar projects to optimize land use and expanding the solar and wind energy footprint. • Implementation: Prepared by the Sri Lanka Sustainable Energy Authority (SLSEA), the plan sets a clear timeframe for energy park development and addresses environmental concerns, including human-elephant conflict, through stakeholder consultations. • Economic Impact: Aims to reduce heavy reliance on expensive fossil fuel imports, aligning with the national shift toward a green economy to support industrial stability and ICT/BPM sector growth. _Note: Plan based on statutory requirements of the SLSEA Act No. 35 of 2007._
The Human Rights Commission of Sri Lanka (HRCSL) has expressed deep concern over emerging threats to freedom of expression, specifically targeting the ability of journalists to report on matters of public interest without interference. • Misuse of Police Powers: The Commission highlighted a growing trend of law enforcement investigating allegedly defamatory speech, despite defamation being decriminalized in Sri Lanka since 2002. Police have no legal authority to investigate complaints that fall strictly under civil jurisdiction. • Procedural Violations: A recent inquiry into journalist Tharindu Jayawardena—regarding reporting on corruption and public funds—violated a 2025 IGP circular. The directive requires officers to clearly disclose the basis for any summons, which was not done in this instance. • Online Safety Act (OSA) Concerns: The HRCSL raised serious questions regarding the constitutionality of the Online Safety Act. It warned that the law is being deployed to suppress dissent rather than addressing genuine online harms like phishing or malware. • Constitutional Standards: The Commission reiterated that freedom of expression protects speech even if it "shocks or disturbs" the State. It reminded public figures that international standards require them to tolerate a higher degree of criticism than private citizens. • Recommendations: The HRCSL called for a moratorium on the Online Safety Act and urged authorities to stop using criminal processes for civil defamation matters to prevent public frustration and social unrest.
The Insurance Regulatory Commission of Sri Lanka (IRCSL) has extended the temporary suspension of Sanasa Life Insurance Co. PLC until 3 March 2026. The move restricts the company from issuing new long-term insurance policies while it addresses regulatory concerns. • Regulatory Timeline: Initial suspension began on 5 December 2025. The latest extension follows a previous deadline of 31 January 2026. Registration remains suspended under Section 18 of the Regulation of Insurance Industry Act. • Key Reasons for Action: The regulator cited the company's inability to meet the required solvency margin. Issues regarding the provision of inaccurate data and non-compliance with regulatory orders. Action taken to protect the interests of policyholders and the national financial services sector. • Company Financials & Ownership: Net Asset per share: Rs. 22.61 (as of Sept 2025). Top Shareholders: Senthilverl Holdings (19.10%) and Sanasa Federation (10.50%). The company must still fulfill obligations to existing policyholders despite the freeze on new business.
The Ceylon Federation of MSMEs highlights a stark disparity where the banking sector and the Treasury thrived while small businesses collapsed due to high interest rates. • The Interest Shock: In April 2022, policy rates surged by 100%, pushing the Average Weighted Prime Lending Rate (AWPLR) from ~10% to nearly 30% by December 2022. This tripling of costs led to widespread defaults. • Windfall Gains (2023/2024): • Banking Sector Profit Before Tax (PBT): Rs. 762 Billion. • Government Tax Revenue from Banks: Rs. 295 Billion. • The Federation argues these gains were effectively "transferred" from struggling entrepreneurs. • The 'Moratorium Trap': Lack of clear CBSL guidelines on interest capitalization allowed banks to reschedule loans to their advantage, often compounding interest opaquely while using Parate Execution threats. • Proposed Relief Roadmap: • Refund excess interest collected (May 2022 – Nov 2024) for older loans. • Use the Rs. 295 Billion in tax revenue to provide tax credits to banks for these refunds. • Immediate suspension of CRIB and NPL listings for post-Easter attack victims. • Enact binding legislation to ensure mandatory borrower protection. The Federation maintains that the liquidity to save the MSME sector exists within these record-breaking figures.
A landmark January 2026 Indian Supreme Court ruling in Tiger Global v. AAR signals a major shift toward "substance over form," carrying significant implications for cross-border investments and Sri Lanka’s own tax landscape. • The Ruling Highlights The Court denied tax treaty benefits to Mauritius-based entities for the indirect sale of Flipkart shares. Key takeaways include: TRC Limitations: A Tax Residency Certificate is no longer "conclusive proof" of treaty entitlement if the entity lacks commercial substance. Substance Over Form: Authorities can "look through" structures. In this case, control was found to be in the US, not Mauritius. GAAR Supremacy: General Anti-Avoidance Rules (GAAR) can override tax treaties in cases of "impermissible avoidance arrangements." • Comparison: Vodafone vs. Tiger Global Vodafone (2012): Favored taxpayers, emphasizing literal interpretation and legal form. Tiger Global (2026): Favors tax authorities, prioritizing economic reality and value creation over "paper situs." • Implications for Sri Lanka Section 35 (IRA): Sri Lanka’s Inland Revenue Act contains similar GAAR provisions, empowering the Commissioner General to disregard "artificial or fictitious" schemes. Indirect Transfers: Under local law, shares in non-resident companies are deemed "domestic assets" if >50% of their value derives from land or buildings in Sri Lanka. Precedent: The ruling may embolden Sri Lankan authorities to more aggressively scrutinize multi-tiered offshore structures used for ICT/BPM or real estate investments. _Note: Analysis based on provisional January 2026 judicial data._ ---
The Government is currently discussing the possibility of allowing vehicle imports for high-ranking officials who hold valid concessionary vehicle permits. Economic Development Deputy Minister Nishantha Jayaweera confirmed the move in Parliament yesterday. • Current Status: The vehicle permit scheme for retired senior officials remains active and has not been suspended. • Permit Statistics: A total of 1,900 permits have been issued under this scheme to date, with 563 permits granted during 2025. • Key Developments: Discussions are focused on facilitating imports specifically for those who already hold permits, potentially on a priority basis. • Economic Context: This move addresses long-standing restrictions on vehicle imports while balancing the requirements of senior government administration and retired civil servants. _Note: Based on official parliamentary statements._ ---
President Anura Kumara Dissanayake has intervened to personally oversee Sri Lanka’s Third Mutual Evaluation on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), signaling high-level political ownership to protect the nation’s financial integrity. • The Risks: Failure to meet Financial Action Task Force (FATF) standards risks returning Sri Lanka to the "grey list". This could deter foreign investment, increase compliance costs, and disrupt vital cross-border financial transactions. • Strategic Context: The evaluation, overseen by the Asia/Pacific Group (APG), assesses technical compliance with 40 FATF recommendations and effectiveness across 11 outcomes. Previous lapses led to grey-listing in 2017, which the current administration aims to avoid through "good governance and accountability." • Key Directives: • Legislation: Expedite all pending technical amendments and legal reforms. • Human Resources: Resolve staffing shortages by fast-tracking recruitments and re-engaging experienced retired officers on 1-year contracts. • Stability: A special circular will be issued to retain trained staff in their posts until the evaluation concludes in November 2026. • Timeline: A Special Task Force (STF) must submit a progress report to the President within two weeks. _Summary based on official presidential review and provisional evaluation data._
China’s Ministry of Industry and Information Technology has announced a ban on hidden/flush door handles starting January 1, 2027, citing critical safety concerns. This shift impacts the global automotive and EV supply chains, where minimalist designs have become an industry standard. • New Safety Regulations: All vehicles (excluding tailgates) must feature both interior and exterior mechanical releases. This ensures doors remain operable during power failures or post-crash emergencies. • Compliance Timeline: New models must comply by 2027, while previously approved models are granted a two-year extension to phase out existing designs. • Industry Context: Popularized by Tesla in 2012, these handles reduce drag but have faced scrutiny following high-profile accidents, including a fatal crash involving a Xiaomi EV where rescuers could not open the doors. • Global Impact: As the world’s largest EV market and home to BYD (now the global leader in EV sales), China’s regulatory shift will likely force a design pivot across the manufacturing and automotive electronics sectors worldwide. _Note: Based on official MIIT policy announcements as of Feb 2026._ ---
The Legal Officers’ Association of the Attorney General’s Department has issued a formal resolution condemning a series of "unfounded and personal attacks" targeting Attorney General Parinda Ranasinghe (Jnr.), PC, and his officers. • Key Concerns Raised: The Association warns that coordinated efforts are being made to exert pressure on the Department, aiming to undermine its professional independence. It specifically noted the systematic misuse of social media to create a false perception of public dissatisfaction. • Impact on State Functions: Persistent intimidation and smear campaigns risk demoralizing state counsel. This could directly impair the Department’s ability to discharge its constitutional responsibilities in the public interest—a critical component for maintaining the rule of law and investor confidence. • Legal Recourse & Accountability: The Association emphasized that while the AG is subject to the rule of law, legitimate grievances should be pursued through established legal avenues rather than "trials by media." • Public Appeal: Stakeholders and the public are urged to refrain from sharing unverified information. The resolution reaffirms the Association's confidence in the AG's leadership amidst these challenges to the administration of justice. _Note: Based on a resolution adopted at a Special General Meeting held on 29 January 2026._
As global tax rules shift, Sri Lanka is urged to overhaul its investment incentives to prevent local tax revenue from being siphoned by foreign treasuries. With the OECD’s Global Minimum Tax (GMT) of 15% now active for major economies, traditional tax holidays for large firms are becoming obsolete. • The Pillar Two Challenge Under the OECD framework, Multinational Enterprises (MNEs) with annual revenues over €750 million must pay a minimum 15% tax globally. If Sri Lanka offers a 0% rate, the firm’s home country can collect the 15% "Top-Up Tax," effectively turning Sri Lankan concessions into a "donation" to foreign governments. • Proposed "Two-Basket" Strategy Basket 1 (SMEs): Retain traditional profit-based incentives and tax holidays for smaller investors (under €750M revenue) to drive local employment. Basket 2 (Large MNEs): Shift to cost-based incentives, such as Enhanced Capital Allowances (ECA), to reward actual physical investment rather than paper profits. • Technical Modernization Substance-Based Income Exclusion (SBIE): Leveraging carve-outs for "real" economic activity like factories and payroll. Qualified Refundable Tax Credits (QRTC): Adopting cash-refundable credits—the global "gold standard"—to benefit investors without lowering their effective tax rate below the 15% threshold. • Regional Context Competitors like Vietnam, Thailand, and Singapore are already legislating these "smart" incentives. Experts warn that sticking to blanket tax holidays for large ICT/BPM or manufacturing giants risks making Sri Lanka's fiscal toolkit uncompetitive in a "streaming era."
Senior officials from the U.S. Embassy and the Sri Lanka Export Development Board (EDB) met to enhance bilateral trade and investment, focusing on market access and upcoming global summits. • Trade Performance (2025 Full-Year) Total Exports to U.S.: US$ 2,999.15 Mn (Growth: +3.07% YoY) Total Imports from U.S.: US$ 732.22 Mn Trade Status: The U.S. remains Sri Lanka's largest individual export destination. • Key Sector Highlights The U.S. market continues to be a vital pillar for Sri Lanka's diversification and employment via: Apparel & Textiles (Primary revenue driver) Rubber Products and Coconut Kernel Products Spices & Concentrates and Processed Foods • Investment & Global Platforms SelectUSA 2026: Sri Lankan exporters were invited to the premier investment summit in Washington (May 3–6, 2026). Sri Lanka Expo 2026: EDB Chairman invited U.S. stakeholders to the flagship event (June 18–21, 2026) at BMICH to showcase domestic export capabilities. • Strategic Focus Discussions centered on tariff exemptions and creating more favorable market conditions to bolster the economic partnership and increase FDI inflows. _Note: Trade figures are based on 2025 annual performance data._
The National Chamber of Exporters (NCE) and the Export Development Board (EDB) have strengthened ties to sustain growth following a 5.6% YoY increase in 2025 export earnings. • Economic Performance Sri Lanka’s total export earnings reached US$ 17.25 Bn in 2025. The EDB, supported by the ADB, has finalized the National Export Development Plan 2025-2029 to boost global competitiveness and sustainable trade. • Strategic Initiatives Sri Lanka Expo: Set to return after a decade to expand the exporter base. SME Growth: Current SME contribution is low (7-8%); the goal is to reach a global standard of 25%. Digitalization: Accelerated focus on the National Single Window to streamline logistics and trade facilitation. • Sectoral Challenges Labour: Critical shortages and an aging workforce are hindering multiple sectors; "exporting labor" remains a long-term concern. Horticulture: Facing administrative hurdles with forest conservation permits. Minerals: Industry practitioners are urging for better consultation on value-addition policies. FTAs: Exporters requested earlier involvement in Free Trade Agreement negotiations to better prepare for market shifts. • Regional Development The NCE's "Aspiring Exporters" concept will merge with EDB district-level outreach to cultivate new exporters at the provincial level. _Note: Based on 2025 performance data and 2026-2029 strategic outlines._
A high-level Sri Lankan delegation, led by Deputy Minister Chathuranga Abeysinghe, met with senior officials of the Saudi Public Investment Fund (PIF) in Riyadh to secure large-scale investments and strengthen economic ties. • Strategic Focus Areas The discussions highlighted Sri Lanka’s competitive advantages in infrastructure, logistics, tourism, and renewable energy. The PIF, central to Saudi Vision 2030, explored aligning these with its 2026–2030 Strategic Plan. • Capital Market & Reforms The Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) showcased the potential of the domestic capital market. Officials briefed the PIF on new regulatory reforms designed to boost investor confidence and ensure sustainable growth. • Bilateral Frameworks Both parties emphasized the urgency of finalizing a Bilateral Investment Protection Agreement. Existing frameworks, such as the Agreement on the Avoidance of Double Taxation, were reviewed to facilitate seamless cross-border capital flows. • Key Sectors Identified Energy & Mining: Exploration of mineral resources and green energy. Technology & ICT: Opportunities for digital economy collaboration. Manufacturing & Agriculture: Focus on value-added exports and food security. Both nations have established a direct communication channel to fast-track follow-up actions and formalize investment commitments.
US President Donald Trump has announced a significant trade pact with India, slashing tariffs on Indian goods from 50% to 18%. This move follows India’s agreement to halt Russian oil purchases and eliminate trade barriers against US products to zero. • Overall Figures & Trade Impact US tariffs on India reduced to 18% (from a high of 50%, which included a 25% "reciprocal" rate and a 25% punitive duty). India to purchase over US$ 500 Bn in US energy (coal and oil), technology, and agricultural products. Indian equity markets responded positively: Infosys (+4.3%), Wipro (+6.8%), and HDFC Bank (+4.4%). • Regional Competitiveness & Sri Lanka At 18%, India now holds a tariff advantage over Sri Lanka, which faces a 20% to 30% tariff rate on exports to the US. This narrowing margin poses a competitive threat to Sri Lanka’s apparel & textiles sector, as US buyers may pivot to lower-tariff Indian suppliers. The deal brings India in line with Asian peers (15%-19% range), removing a long-standing drag on the Indian Rupee. • Energy & Sector Shifts India will shift crude oil sourcing to the US and potentially Venezuela to replace Russian supplies. Highlights potential growth for India’s ICT/BPM and manufacturing sectors due to lower entry costs into the US market. Sri Lankan exporters, particularly in apparel, are urged by industry bodies (like JAAF) to seek similar diplomatic concessions to maintain market share. _Note: Summary based on provisional data; formal US presidential proclamation is pending._
A high-level panel discussion hosted by the SLUKCC and the Sri Lanka High Commission in London focused on deepening bilateral economic ties and leveraging new trade frameworks. • Market Context: The UK remains Sri Lanka's second-largest export market. Discussions centered on utilizing the Developing Countries Trading Scheme (DCTS), which offers enhanced market access and relaxed Rules of Origin for apparel as of January 2026. • Economic Ambitions: BOI Chairman Arjuna Herath highlighted Sri Lanka’s goal of achieving nearly 7% economic growth by attracting high-quality investment, particularly in real estate and Colombo’s business districts. • Sector Focus: Key opportunities were identified in: • Apparel & Textiles: Benefiting from simplified trade rules. • ICT/BPM: Leveraging skilled labor and global technology services. • Tourism & Port City: Utilizing Sri Lanka’s strategic location as a gateway to Asia. • Upcoming Milestone: The Sri Lanka Expo 2026 is scheduled for June 18–21 in Colombo. The event aims to showcase export and investment opportunities to international delegations, with specific concessions for UK participants. • Strategic Outlook: The UK Trade Envoy emphasized the importance of modern value chains and government-business collaboration to unlock long-term commercial partnerships.
The Northern province recently concluded two landmark events aimed at accelerating regional growth and fostering entrepreneurship. The 16th Jaffna International Trade Fair (JITF) and the inaugural Northern Investment Summit highlighted a shift toward modernizing the region’s economic landscape. • Jaffna International Trade Fair (JITF) 2026: • Over 400 stalls featured sectors including construction, agriculture, ICT, and automobiles. • Participation from 200+ companies and approximately 5,000 business delegates, including international representatives. • Historically the largest post-conflict platform for Northern industry linkage over the past 16 years. • Northern Investment Summit Highlights: • Inaugurated by the Ministry of Industry and Entrepreneurship Development at the Jaffna Cultural Centre. • High-level state participation from the BOI, EDB, and the Tourism Promotion Bureau. • Key focus areas included renewable energy, community tourism, and ICT/BPM startups. • Strategic support from India and the Sri Lankan diplomatic mission in Chennai to drive foreign direct investment (FDI). • Economic Impact & Outlook: • Integration of the two events is proposed for 2027 to maximize employment and regional visibility. • The summit acts as a catalyst to bridge the gap between Northern potential and Southern capital, specifically targeting youth entrepreneurs (ages 19–35). • Emerging interest in niche sectors like leisure tourism (golf) to diversify the Northern provincial economy.
Lord Marland of Odstock, Chairman of the Commonwealth Enterprise and Investment Council (CWEIC), will undertake an official visit to Sri Lanka on February 9th and 10th, 2026. This visit follows the establishment of a dedicated CWEIC hub in Colombo to support local strategic partners and drive trade within the 56-member network. • Economic Impact & Objectives The mission aims to bolster Sri Lanka’s economic recovery by leveraging the "Commonwealth Advantage"—a 21% reduction in bilateral trade costs and a 27% increase in investment flows between member nations. • Strategic Engagements Lord Marland is scheduled to meet with the President and key private sector partners to discuss the investment climate. Focus areas include diversifying the economic base and fostering global trade integration. • Key Partnerships CWEIC currently collaborates with prominent Sri Lankan entities, including: • Port City Colombo (Special Economic Zone) • Capital Maharaja Group • LOLC Holdings • ICT/BPM leaders like EWIS and BoardPAC • Hypower Engineering International • National Context The visit highlights Sri Lanka's strategic maritime role and its potential to expand into high-growth markets in South Asia and Africa. Strengthening these ties is essential for boosting FDI and enhancing local employment through trade, energy, and financial services sectors.
• AIA Group Chief Executive Lee Yuan Siong reaffirmed the Group's commitment to the Sri Lankan market during an official visit, highlighting a long-term vision for financial inclusion and national well-being. • In a meeting with Prime Minister Dr. Harini Amarasuriya, AIA Sri Lanka pledged a donation of LKR 50 million to the 'Rebuilding Sri Lanka' national initiative, focusing on social security and family protection. • Strategic discussions were held with the Insurance Regulatory Commission of Sri Lanka (IRCSL) to share insights on the global insurance landscape and support local industry growth. • The visit emphasized the importance of the bancassurance sector, with high-level meetings involving CEOs from Commercial Bank, NDB, and DFCC Bank to expand life insurance access across banking networks. • The Group CEO engaged with local employees and top sales achievers, noting strong performance and the company's role in the financial services sector as a key driver of economic resilience.
Sri Lanka and Pakistan concluded the 13th session of the Joint Economic Commission (JEC) on January 28, 2026, in Colombo. The talks, led by Sri Lanka’s Minister of Trade Wasantha Samarasinghe and Pakistan’s Haroon Akhtar Khan, focused on deepening bilateral trade beyond traditional commodities. • Strategic Initiatives A key outcome was the establishment of a Joint Working Group on ICT/BPM and Digital Economy to collaborate on emerging technologies. Both nations also committed to streamlining the existing Free Trade Agreement (FTA) to boost trade volumes, which experts suggest have a potential of US$ 5.00 Bn. • Sector Breakdowns Pharmaceuticals: Sri Lanka invited Pakistani firms to invest in designated manufacturing zones to strengthen local supply chains. Agriculture: Finalized export procedures for Sri Lankan pineapple and avocado to Pakistan; progress made on meat and seed trade. Industries: Focus on chemicals, polymers, glassware, and surgical instruments. SMEs: Agreement to enhance collaboration between development agencies to drive employment. • Logistics & Maritime Discussions included potential partnerships between the Karachi, Gwadar, and Sri Lankan ports. Pakistan further offered support in shipbuilding and maritime training. _Source: Based on official session outcomes and provisional data from Jan 29, 2026._
The recent Davos 2026 address by Canadian PM Mark Carney signals a "rupture" in the global rules-based order, warns a new analysis. While Carney urges "middle powers" to unite, the report highlights critical cautionary tales for debt-vulnerable nations like Sri Lanka. • Geopolitical Reality: Carney admitted the "rules-based order" was often a fiction where powerful states exempted themselves. For Sri Lanka, this confirms that global trade and investment rules (like ISDS) often prioritize multinational capital over national sovereignty. • Economic Vulnerability: The 2022 sovereign default is cited as a predictable result of over-integration into a financial system that rewards short-term capital mobility. The report notes debt-to-GDP is projected to fall to 96.8% by 2026, but warns against "deifying" austerity to appease creditors at the cost of social welfare. • Strategic Diversification: To mitigate risks, Sri Lanka must pivot toward: Sustainable Industry: Prioritizing value addition over unconditional liberalization. Agriculture & Food Security: Moving away from import dependence to protect the 8.3% GDP contribution of agriculture. Finance: Shifting from short-term commercial debt to longer-term concessional or bilateral arrangements. • The Verdict: Sri Lanka should avoid uncritical alignment with "middle-power" coalitions that may only reformat the system for their own benefit. Instead, the focus must remain on asserting sovereignty and protecting employment and public services amidst global flux.
Overall Event: Sri Lanka successfully showcased its export potential at the world's largest B2C trade fair for food, beverages, and agriculture, held in Germany. The event attracts over 400,000 global visitors annually. Sector Highlights: • Tea & Spices: High demand for Ceylon Tea and Ceylon Cinnamon, with exporters noting strong interest from EU buyers. • Coconut Products: Featured prominently as a key agricultural export. • Value-Added Goods: Showcase included handicrafts, gems, and jewellery. Market Impact: • Organized by AHK Sri Lanka, the pavilion focused on helping SMEs enter the high-standard EU and German markets. • Direct consumer interaction provided critical insights into European consumer preferences and market requirements. • Strategy emphasizes increasing product visibility and strengthening buyer confidence to unlock long-term trade partnerships. National Context: Participation aligns with efforts to diversify export destinations and support small-scale producers in accessing global value chains. _Note: Based on official reports from the Delegation of German Industry and Commerce in Sri Lanka._ ---
• Overall Trade: Total bilateral trade reached US$ 442 Mn in 2024, up from US$ 350.8 Mn in 2018. Sri Lanka maintained a positive trade balance of US$ 53.7 Mn last year. • Export Highlights: Sri Lanka’s exports to Australia rose to US$ 247 Mn in 2024. Key contributors include apparel, tea, rubber products (tyres/gloves), and coconut products. • Import Profile: Imports from Australia totaled US$ 194 Mn, dominated by lentils, cereals, and paper products. • Tourism: Australia remains a top 10 source market, contributing 4.36% of total arrivals. In 2024, arrivals reached 89,573, nearly recovering to pre-pandemic levels (92,674 in 2019). Notably, 19% of these arrivals are driven by the Visiting Friends and Relatives (VFR) segment. • Remittances & Migration: Remittance inflows from the diaspora in Australia grew by 33.3% YoY, rising from US$ 108.6 Mn in 2023 to US$ 144.8 Mn in 2024. • Investment: The total stock of Australian Foreign Direct Investment (FDI) in Sri Lanka reached US$ 231 Mn by end-2024. Emerging opportunities are identified in renewable energy, agribusiness, and infrastructure. • Development: Australia continues to support Sri Lanka through humanitarian aid, including recent relief efforts following Cyclone Ditwah and the 2022 economic crisis.
JAT Holdings PLC demonstrated resilience in Q3 FY 2025/26, overcoming disruptions from cyclone Ditwah while marking a significant milestone in its global expansion strategy. • Overall Financials • Revenue: Up 7% YoY to Rs. 8.1 Bn. • Gross Profit: Increased 14% YoY to Rs. 2.95 Bn. • GP Margin: Strengthened to 36% (from 34%) due to vertical integration and pricing discipline. • Profit After Tax (PAT): Fell 23% YoY to Rs. 774 Mn, impacted by storm-related sales losses and tax adjustments. • Sector & Market Performance • Local Revenue: Grew 9% YoY, led by wood coatings, decorative paints, and EV charger manufacturing. • Export Revenue: Remained stable at Rs. 2.01 Bn (+0.5% YoY). • Bangladesh: Faced a 16% YoY decline but showed a 9% recovery QoQ, indicating a stabilization trend. • Strategic Global Expansion • Mirotone Acquisition: Acquired New Zealand’s leading industrial wood coatings firm (established 1935). • Australasia Entry: The move provides immediate access to the Australian market with a relaunch planned within 6 months. • Vertical Integration: Efficiency gains from internal production of acrylic binders and alkyd resins continue to support margin expansion. _Note: Results reflect a recovery trajectory for Q4 based on pent-up domestic demand._
Hemas Holdings PLC (HHL) reported a steady performance for the nine months (9M) ended December 2025, with earnings rising 7.5% YoY to Rs. 5.9 Bn. Performance was bolstered by a 9.4% revenue increase to Rs. 96 Bn and reduced finance costs, despite a softer Q3 impacted by Cyclone Ditwah. • Market Performance: HHL shares surged 68% YoY, significantly outperforming the ASPI (+41.9%) and S&P SL20 (+26.6%), reflecting strong investor confidence. • Sector Breakdowns: • Healthcare: The primary driver, with revenue up 14.6% to Rs. 57.6 Bn and earnings growing 17% to Rs. 3.2 Bn. Strong demand in pharmaceutical distribution and hospitals (inpatient/outpatient) offset cyclone disruptions. • Consumer Brands: Revenue grew marginally to Rs. 36.5 Bn with earnings at Rs. 4.2 Bn. Seasonal shifts in the learning segment (Atlas) and cyclone-led distribution issues dampened quarterly results. • Mobility: Revenue up 18.5% to Rs. 1.7 Bn, driven by maritime volume growth and the new China–India Express service. • Strategic Moves: • Established Hemas AI Labs and initiated group-wide digital transformation. • Leadership transition: Ajith Fernando assumed the role of Chairman on 1 Jan 2026, succeeding Husein Esufally. • Committed Rs. 230 Mn for post-cyclone humanitarian relief and SME support. • Outlook: Recovery trends are evident in early 2026 as demand stabilizes and operating conditions improve nationwide.
Agriculture-heavy conglomerate CIC Holdings demonstrated resilience during the nine months ending December 2025, overcoming climate disruptions to post steady growth. • Overall Performance: Consolidated revenue reached Rs. 70.28 Bn, up 8.69% YoY. Profit After Tax (PAT) grew to Rs. 5.97 Bn (vs. Rs. 5.7 Bn last year), while Operating Profit (EBIT) rose to Rs. 9.67 Bn. Gross profit margins improved to 26%. • Sector Breakdowns: • Crop Solutions: Remained the primary driver with Rs. 32.32 Bn revenue (44.7% of total), growing from Rs. 28.06 Bn despite Cyclone Ditwah impacting Maha season cultivation. • Livestock Solutions: Revenue rose to Rs. 14.6 Bn, supported by steady growth in poultry and veterinary care. • Health & Personal Care: Earned Rs. 14.46 Bn, bolstered by herbal health product exports and resilient domestic demand for pharmaceuticals. • Industrial Solutions & Agri Produce: Contributed Rs. 6.28 Bn and Rs. 4.64 Bn respectively. • Strategic Context: The Group’s diversified portfolio mitigated losses in agri-operations caused by cyclone-related cultivation disruptions. The focus remains on food security and healthcare access through export-driven growth and disciplined cost management.
The Fort Magistrate’s Court has summarily dismissed a criminal case filed against Asia Capital PLC and several of its former employees, clearing the company of all charges. • Case Overview: The action was initiated by CC Trust Ltd, a Japanese-owned investor based in Singapore, alleging a criminal breach of trust. • Financial Scope: The dispute involved a sum of approximately US$ 6 million linked to a Shareholders’ Agreement dated 1 September 2017. • Court Ruling: The court dismissed the case, concluding that the allegations were baseless. Asia Capital PLC maintained that the matter was a commercial transaction rather than a criminal one. • Impact: The discharge absolves the company’s directors and staff of criminal liability, resolving a significant legal hurdle that had affected the firm's reputation in the investment banking and leisure sectors.
Prime Minister Dr. Harini Amarasuriya announced a historic turnaround for the State-Owned Enterprise (SOE) MILCO, marking the first time in over two decades that profits have been shared directly with the farming community. • Financial Performance: MILCO recorded its highest-ever sales turnover in 2025, achieving a historic net profit within a 16-month turnaround period. • Farmer Incentives: A total of 22,000 dairy farmers are set to receive incentives. Dividend payments were symbolically presented to 2,000 farmers, covering all provinces. • Social Security: The program introduced the Farm/Farm Family Insurance and awarded pension membership certificates under the Dairy Farmer Retirement Scheme in partnership with the Social Security Fund. • Sector Impact: The government emphasized transforming livestock and dairy sectors through "economic democracy," focusing on minimizing fraud and corruption to make SOEs efficient and people-oriented. The move signals a shift toward inclusive growth, integrating local producers into the national production process while ensuring high standards and proper industry procedures.
The Colombo Fort Magistrate’s Court has ordered the Criminal Investigation Department (CID) to arrest and produce Shamindra Rajapaksa, the youngest son of former Speaker Chamal Rajapaksa, in connection with the long-standing SriLankan Airlines Airbus scandal. • Case Context: The inquiry focuses on alleged financial fraud and bribery during the 2013 purchase of 14 Airbus aircraft for the national carrier. • Suspect Status: Shamindra Rajapaksa has been named the 3rd suspect. The court also directed the CID to seek an INTERPOL Red Notice, as the suspect is currently reported to be in the US. • Primary Accusations: • Kapila Chandrasena (former CEO) and his wife are the 1st and 2nd suspects. • Allegations involve a US$ 2 Mn bribe accepted from a French Airbus entity, later laundered through international accounts. • Investigations revealed a transfer of US$ 160,000 into an account belonging to Shamindra Rajapaksa in 2013. • Impact: The fraudulent deal and subsequent cancellation of aircraft orders reportedly cost the debt-burdened national carrier approximately US$ 400 Mn in losses and penalties. _Status: Based on ongoing magisterial inquiry and CID submissions (Feb 2026)._
Commercial Bank of Ceylon PLC has announced major capital-raising and internal equity plans to strengthen its financial position and align with Basel III requirements. • Debenture Issue Details: The bank aims to raise up to Rs. 20 billion through Basel III-compliant Tier II listed, rated, unsecured, subordinated, redeemable debentures. • Structure: Initial tranche of Rs. 10 billion (100 million debentures), with two optional tranches of Rs. 5 billion each in case of oversubscription. • Maturities: Options of five, seven, and 10 years at a face value of Rs. 100 each. • Key Feature: Includes a non-viability conversion feature as per regulatory standards. • Employee Share Option Plan (ESOP): A new ESOP will be established for the 2026-2028 period to drive employee engagement within the banking & financial services sector. • Equity Dilution: Capped at 3% of ordinary voting shares (up to 46,195,156 shares). • Current Capital: As of Jan 29, 2026, stated capital is ~Rs. 91.65 billion, represented by over 1.5 billion voting shares. • Regulatory Status: Both the debenture issue and ESOP are subject to approvals from the Colombo Stock Exchange (CSE) and shareholders. _Note: Based on official bank disclosure as of February 3, 2026._
Galle Face Capital Partners PLC (WAPO) has approved a subdivision of its ordinary shares to enhance market liquidity. The decision, finalized by the Board on 31 January 2026, follows a period of significant share price appreciation. • Share Subdivision Details • Existing shares: 29,582,029 units. • New total shares: 118,328,116 units. • Split ratio: 1 share split into 4. • Stated capital: Remains unchanged at approx. Rs. 650 Mn. • Market Performance • Market Reaction: Share price rose by Rs. 22 (+20.7%) to close at Rs. 128. • Trading Volume: Over 1 million shares traded with a turnover exceeding Rs. 138.8 Mn. • Net Assets: Reported at Rs. 97.68 per share as of Dec-2025. • Ownership & Governance • Major Shareholders: Ceylon Land & Equity PLC (27.76%) and Shaw Wallace & Hedges (23.88%). • Public Float: 29.99% held by over 500 shareholders, meeting CSE compliance. This move by the investment & capital markets firm is intended to make shares more accessible to retail investors without altering the company's underlying value. The effective date for the split will be announced via the Colombo Stock Exchange (CSE) shortly. _Note: Based on provisional corporate disclosures._
Ceylon Land & Equity PLC has announced a major 2-for-1 Rights Issue to raise approximately Rs. 4.3 Billion, aimed at debt settlement and expanding its property development and portfolio management segments. • Issue Details • Proportion: Two (2) new ordinary voting shares for every one (1) existing share held. • Price: Issued at Rs. 7.00 per share (614.1 Mn new shares). • Total Capital: Expected infusion of ~Rs. 4.3 Bn. • Strategic Utilization of Funds • Settle short-term bank loans and inter-company borrowings. • Finance a Rs. 1.7 Bn investment in Shaw Wallace & Hedges Ltd to increase shareholding to 49.2%. • Fund future real estate and investment portfolio growth. • Market & Financial Context • Market Reaction: Share price closed at Rs. 15.20 (+Rs. 2.80), significantly above the issue price. • Net Assets: Reported at Rs. 14.95 per share as of Dec 2025. • Ownership: Major stakes held by Galle Face Properties (33.4%) and Almas Holdings (22.4%). _Note: Subject to CSE in-principle approval and shareholder vote at an EGM._
PMF Finance PLC has showcased strong growth momentum for the nine months ended 31 December 2025, driven by a significant expansion in its loan book and improved margins within the financial services sector. • Financial Performance Highlights • Gross Income: Rs. 3.84 Bn (up 24.2% YoY). • Net Interest Income: Rs. 2.17 Bn (up 46.5% YoY). • Profit Before Tax (PBT): Rs. 456.7 Mn (up 139.5% YoY). • Net Profit: Rs. 266.1 Mn (up 39.4% YoY). • Earnings Per Share (EPS): Increased to Rs. 0.66 from Rs. 0.47. • Balance Sheet & Solvency • Total Assets: Rs. 23.08 Bn (up 6.8% since March 2025). • Loans and Advances: Rose by 13.4% to Rs. 19.47 Bn. • Equity: Strengthened by 8.7% to Rs. 3.31 Bn. • Debt-to-Equity: Improved to 5.74x from 5.93x, reflecting prudent leverage. • Market & Investor Outlook • Share Price: Closed at Rs. 14.00, nearly doubling from Rs. 7.90 YoY. • Ownership: Sterling Capital Investments Ltd. remains the dominant shareholder (81.6%), followed by Peoples Bank (8.3%). • Strategy: The results reflect resilient growth in core lending and improved asset quality, positioning the firm for further 2026 expansion. _Note: Based on provisional nine-month financial data._
Lanka Rating Agency has assigned an initial A+ rating to LB Finance PLC, highlighting its dominant position in the leasing and finance sector and superior asset quality. • Market Position: As of September 2025, the company holds a significant 12.3% share of the sector's total assets and 12.4% of total deposits. It operates a nationwide network of 221 branches. • Portfolio Breakdown: The lending book is diversified across gold loans (38%) and leasing and vehicle loans (42%), with the balance in mortgage and term loans. • Financial Performance: • Net Interest Income: Reached Rs. 14.2 Bn in 1H FY2026. • Profitability: Reported Rs. 5.8 Bn for 1H FY2026, a 23.7% YoY increase. • Asset Quality: Maintained exceptional standards with a Gross NPL ratio of 1.55%, significantly below industry averages. • Capital Strength: The Capital Adequacy Ratio stands at 23.66%, far exceeding the Central Bank’s 14% requirement for large finance companies. The outlook remains stable, backed by strong controls and its status as a subsidiary of the Vallibel One Group (51.75% stake).
• Overall Funding: Secured US$ 45 million in long-term senior debt facilities from two premier Swiss impact investors. • Investor Breakdown: The facility includes US$ 25 million from BlueOrchard Finance Ltd. (Schroders Group) and US$ 20 million from responsAbility Investments AG. • Strategic Focus: Funds are dedicated to expanding credit access for Sri Lanka’s micro, small, and medium-sized enterprise (MSME) sector, a critical driver of national employment and economic recovery. • Economic Impact: The capital injection strengthens LB Finance’s balance sheet and liquidity, specifically targeting underserved businesses to stimulate job creation and support export growth. • Context: The deal was formalized at AFIFORUM 2026 in Bangkok, reflecting international confidence in the company’s A-(lka) Stable Outlook (Fitch) despite the global financial environment.
World Bank Executive Director Parameswaran Iyer conducted an official visit to Sri Lanka to reinforce development cooperation and review the nation's economic progress. • High-Level Engagement: Mr. Iyer met with Treasury Secretary Dr. Harshana Suriyapperuma and Country Director David Sislen to align World Bank initiatives with national development goals. • Strategic Focus Areas: Discussions prioritized sectors critical for job creation and value addition, specifically: • Infrastructure and Agribusiness • Healthcare and Tourism • Value-added Manufacturing • Key Objectives: The Treasury emphasized a shift toward attracting foreign investment and ensuring inclusive growth, moving beyond traditional aid toward sustainable economic cooperation. • Status: Based on official meeting reports released February 5, 2026.
Private-sector surveys indicate a robust start to 2026 for Asian manufacturing, driven by resilient demand from the U.S. and the ongoing AI investment boom. • Regional Performance Overview Japan recorded its strongest growth since August 2022 with a PMI of 51.5. South Korea followed suit, hitting its highest level since mid-2024 at 51.2, signaling a recovery in major export powerhouses. • China’s Strategic Pivot The RatingDog China General Manufacturing PMI rose to 50.3 (up from 50.1). This expansion was fueled by a rebound in export orders, helping offset sluggish domestic consumption and supporting a 5.0% GDP growth rate for the previous year. • Southeast Asian Momentum Manufacturing activity expanded across the region, reflecting broader global trade stability: Indonesia: 52.6 (up from 51.2) Taiwan: 51.7 (up from 50.9) Vietnam, Malaysia, and the Philippines also reported expansionary readings. • Global Economic Outlook The IMF has raised its 2026 global growth forecast, citing receding fears over U.S. tariff impacts. For Sri Lanka’s apparel & textiles and ICT/BPM sectors, this strengthening of global demand and regional manufacturing stability provides a positive backdrop for export-led growth.
The Sri Lanka Economic Association (SLEA) will host its Annual International Conference on February 6-7, 2026, focusing on "Transforming the Services Sector for Economic Revival." The event aims to transition Sri Lanka from basic service delivery to high-value, knowledge-based exports. • Sector Impact: The services sector contributes over 60% to Sri Lanka's GDP and is identified as the primary driver for value addition and economic restructuring. • Key Focus Areas: • ICT/BPM & AI: Integrating Artificial Intelligence and data analytics to modernize traditional service models and enhance global competitiveness. • Tourism & Hospitality: Shifting focus to "Tourism Economics" to increase value-per-visitor and ensure equitable wealth distribution to the rural economy. • Finance: Proposing resilient frameworks for banking and regulatory governance as debt restructuring reaches advanced stages in 2026. • Education: Addressing the skills mismatch in Human Capital to prepare the workforce for a globalized, modern services economy. • Strategic Goal: The conference will produce actionable policy briefs to guide the Government’s Public Investment Program (PIP) for 2026–2030, leveraging current macroeconomic stability for an export-oriented recovery. • Event Details: Inauguration at BMICH (Feb 6) featuring PM Dr. Harini Amarasuriya and CBSL Governor Dr. Nandalal Weerasinghe; technical sessions at the University of Colombo (Feb 7).
Sri Lanka faces a critical juncture as it prepares for the conclusion of IMF support in 2027. To prevent a "cliff fall" fiscal shock, the focus must shift from basic stabilization to deep structural transformation. • Strategic Focus: Transitioning from crisis management to a resilient, export-led economy to generate stable FX and quality employment. • Export Diversification: Urgent need to move beyond traditional tea and apparel & textiles. Growth must be driven by ICT/BPM, high-value manufacturing, logistics, and agri-processing. • Fiscal & SOE Reform: • Revenue growth via a broader tax net rather than ad-hoc levies. • Restructuring loss-making state-owned enterprises (SOEs) in energy and transport to reduce the drain on public finances. • Investment & Productivity: • Enhancing human capital to combat brain drain and skill mismatches. • Attracting FDI by reducing red tape and ensuring policy consistency. • Transitioning to renewable energy (solar, wind) to lower the trade deficit and energy costs. • Governance: Strengthening the rule of law and transparency is deemed a prerequisite to maintaining investor trust and avoiding a repeat cycle of bailouts.
The Central Bank of Sri Lanka (CBSL) maintained its role as a significant net buyer of foreign currency in 2025, according to the latest Market Operations Report. These interventions aimed to bolster national buffers while managing currency volatility. • Overall FX Operations & Reserves • CBSL recorded net foreign exchange purchases of US$ 1.99 Bn for the full year 2025. • Gross official reserves rose to US$ 6.8 Bn by year-end, the highest post-crisis level. • Total absorption reached US$ 2.10 Bn against a supply of US$ 108.0 Mn. • Reserves include a People’s Bank of China swap facility equivalent to US$ 1.4 Bn. • Money Market & Liquidity • FX operations injected approximately Rs. 788.9 Bn of net liquidity into the domestic market. • Year-end liquidity surplus stood at Rs. 175.2 Bn, slightly up from Rs. 168.1 Bn in 2024. • Liquidity was partially offset by Rs. 356.1 Bn in net government foreign loan repayments and Rs. 210.2 Bn in currency withdrawals. • Exchange Rate & Sector Impact • The Sri Lankan Rupee depreciated by 5.6% against the US Dollar in 2025. • Depreciation was driven by increased demand for motor vehicle imports and infrastructure-related outflows. • External stability was supported by steady inflows from workers’ remittances and export proceeds, facilitating continued reserve accumulation.
Sri Lanka concluded 2025 with a current account surplus of US$ 1.7 Bn, a 43.8% increase YoY, driven by record remittances and service inflows despite a widening trade deficit. • External Sector Highlights: The surplus was anchored by workers' remittances, which hit a historic high of US$ 8 Bn (+22.8% YoY). Net inflows from services rose to US$ 3.7 Bn, supported by a 170.4% YoY surge in December alone. • Trade Performance: The trade deficit widened as imports grew by 14% to US$ 21.47 Bn, significantly impacted by vehicle imports exceeding US$ 2 Bn. Exports grew more modestly by 6.3% to US$ 13.58 Bn. • Tourism & Investment: Tourism earnings saw a marginal 1.6% annual growth to US$ 3.2 Bn, despite arrivals surpassing 2018 levels. Government securities saw a net inflow of US$ 248 Mn for the year, a reversal from the previous year's outflows. • Reserves & Currency: Gross official reserves stood at US$ 6.8 Bn by year-end. The Sri Lankan Rupee depreciated 5.6% against the US Dollar in 2025 but showed a slight recovery of 0.2% in January 2026. _Data based on provisional Central Bank of Sri Lanka (CBSL) reports._ ---
• Strategic Shift Required: Dr. Ganeshan Wignaraja (ODI Senior Fellow) warns that gradual, incremental reforms are insufficient. A "big bang" reform agenda is essential to transition from cyclical stabilization to durable, investment-led growth. • Economic Vulnerabilities: While the 2023 IMF-led recovery is credible, the economy remains exposed to debt distress and external shocks. Current progress is often "two steps backward and one step forward" due to systemic inertia. • Impact of Cyclone Ditwah: • Damage estimated at US$ 4.1 Bn (approx. 4% of GDP). • Unlike the tsunami, this disaster affected a larger geographical area, highlighting critical gaps in national preparedness and coordination. • Priority Reform Areas: • Regulatory Environment: Eliminating 20 years of "red tape" that strangles businesses. • Energy & Productivity: Addressing high factor costs and labor skills shortages to attract foreign investment. • Global Integration: Deepening links with global supply chains to move beyond debt-driven cycles. • Fiscal Outlook: Recommendations include mobilizing domestic resources and engaging the IMF for limited fiscal flexibility to manage rising poverty levels post-disaster. • National Context: Stabilization has opened a narrow "reform window." Decisive action on energy costs and productivity is required to reassure markets and prevent a return to debt distress.
The construction sector showed significant momentum at the end of 2025, with the Total Activity Index reaching 67.1, up from previous months, signaling a robust expansion despite weather-related disruptions. • Sector Growth: Most firms reported a notable increase in activity, overcoming initial delays caused by adverse weather conditions during the period. • New Orders & Projects: The New Orders Index saw continued expansion, fueled by a dual rise in government-funded infrastructure projects and new private-sector developments. • Labor & Supply Chain: • Employment: Remained at a neutral level, indicating stable workforce conditions. • Purchasing: The Quantity of Purchases Index expanded as firms stocked up for increasing project demands. • Logistics: Suppliers’ Delivery Time remained extended, reflecting continued supply chain pressures. • Outlook: Based on provisional data, the industry reflects a strong recovery phase, contributing to national economic diversification and infrastructure development. ---
Sri Lanka's consumer prices saw a slight uptick at the start of the year, driven primarily by rising costs in the food sector. • Overall Inflation: The Headline Inflation (CCPI) rose to 2.3% on a Year-on-Year (YoY) basis in January 2026, up from 2.1% in December 2025. • Food Sector: Inflation in the Food Group increased to 3.3% in January 2026, compared to 3.0% in the previous month, reflecting upward pressure on essential commodities. • Non-Food Sector: The Non-Food Group remained stable, with inflation holding steady at 1.8% YoY, unchanged from December 2025. Based on provisional data from the Department of Census and Statistics.
The Sri Lankan government and BOI present a multi-pronged, yet contrasting strategy to boost Foreign Direct Investment (FDI) as global competition intensifies. • Key Targets & Performance 2026 Target: US$ 1.5 Bn - US$ 2.0 Bn. 2025 Realized FDI: Over US$ 1 Bn (provisional), a 72% YoY increase. Top Sectors: Manufacturing (46%), Port Development (26%), and Tourism (11%). Top Sources: Singapore, India, France, Netherlands, and Luxembourg. • Strategic Divergence BOI Stance: Chairman Arjuna Herath emphasizes hard structural reforms (lower costs, institutional efficiency) over "concession-heavy" regimes the state cannot afford. Ministry Pitch: Deputy Minister Chathuranga Abeysinghe is offering tax holidays of up to 15 years to attract UAE investors. Port City: Positioned as a services-led hub for financial services, IT & digital exports, and logistics. It recently secured a US$ 300 Mn FDI commitment for Phase II. • Critical Challenges Execution Gap: Critics warn that "strategy without execution is hallucination," citing the need for targeted campaigns rather than general pageantry. Infrastructure: Success depends on reliable electricity and global connectivity to compete with regional hubs like the UAE (which drew US$ 45 Bn in 2025).
The Ceylon Chamber of Commerce reports a moderate economic impact following the recent cyclone, with core sectors recovering within two months. While the World Bank estimates total damages at US$ 4.1 Bn (4% of GDP), domestic indicators show rapid resilience. • Sector Recoveries & Highlights: • Agriculture: Impact lower than feared; 10% of land fully damaged. Operations have returned to normal with no sustained food inflation or scarcity. • Tourism: Short-term arrivals dipped 5-10% post-cyclone but January 2026 data shows a 10% YoY increase. City hotel occupancy is projected to exceed 70% this month. • Banking: Minimal exposure with only ~1% of loan portfolios affected. • ICT/BPM: Sector earned an estimated US$ 1.65 Bn in 2025; remains a key growth pillar for 2026. • 2026 Growth Drivers: • Construction: Expected to rebound via post-cyclone reconstruction, Port City developments, and resumed infrastructure projects. • Exports: Apparel & textiles and other export sectors saw temporary shutdowns, but December 2025 data suggests no material long-term impact on orders. • Consumption: Supermarket volumes have already returned to pre-cyclone levels, signaling robust domestic demand. • Strategic Outlook: India remains the top source market for tourism. Growth in 2026 will hinge on hotel refurbishments and the entry of international brands to drive higher per-visitor spending.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva will visit Sri Lanka next month to review progress under the US$ 2.9 Bn Extended Fund Facility (EFF) and express solidarity following the devastating impact of Cyclone Ditwah. ### Key Visit Objectives • Program Review: Assessment of the "success of the program" following the completion of the 5th review (deferred to early 2026 due to the disaster). • Disaster Solidarity: Reaffirming support after a 20% land area inundation that caused an estimated US$ 6-7 Bn in recovery needs. • Governance Focus: Acknowledging strong public appreciation for the government's governance reforms and anti-corruption efforts. ### Economic Context & Performance • Growth Rebound: GDP growth reached 5.0% in 2024 and 4.8% in H1 2025, though agriculture and tourism face short-term headwinds from recent flooding. • Fiscal Gains: Tax revenue more than doubled from 7.3% to 14.8% of GDP; inflation dropped from 70% to approximately 2-3%. • Emergency Funding: The IMF recently disbursed US$ 206 Mn via the Rapid Financing Instrument (RFI) to address urgent balance-of-payments needs. ### Outlook for 2026 • 6th Tranche: Discussions for the next US$ 330 Mn disbursement are set to resume in March 2026. • Infrastructure: Focus on restoring roads and rural livelihoods, supported by a LKR 500 Bn (approx. 1.4% of GDP) supplementary budget allocation. _Note: Data based on provisional IMF mission assessments and 2026 budget projections._
The Cabinet has greenlit tenders for independent battery storage systems at 16 electrical substations, a critical move to stabilize the national grid and maximize renewable energy usage. • Capacity & Scale: A total of 160 MW/640 MWh will be installed nationwide, with each substation hosting a 10 MW/40 MWh system. • Implementation Model: The project operates under the Build, Own, and Operate (BOO) model, ensuring private sector participation in energy infrastructure. • Tender Highlights: High investor interest resulted in 153 submissions for the 16 sites following the initial call in July 2025. • Strategic Impact: These systems address the intermittent nature of solar power, allowing for better grid stability and the optimization of clean energy supply. • National Context: This milestone supports Sri Lanka's transition toward a greener power sector, reducing reliance on thermal generation and enhancing energy security.
The Event Management Association of Sri Lanka (EMA) achieved a historic milestone during its 7th AGM, securing formal recognition for the sector as a government-recognized industry. This move follows Cabinet approval and persistent advocacy to professionalize the events landscape. • Strategic Milestone The event management sector is now officially recognized as an industry, moving beyond a service-based classification. President Saliya Weerasekera noted this opens doors for structured growth, better regulation, and enhanced economic respect. • Economic Impact & Standards The sector will now focus on setting a "Gold Standard" through: Professional Benchmarks: Implementing rigorous industry-wide criteria. Global Integration: Strengthening existing partnerships, such as the EEMA India collaboration, to adopt international best practices. Capacity Building: Ongoing initiatives like the EMA Staff Workshop to upskill the workforce, supporting wider employment and economic diversification. • Leadership for 2026/2027 The newly appointed Executive Committee, led by President Saliya Weerasekera and Vice President Bathiya Jayakody, is tasked with transitioning the sector from mere recognition to becoming a sustainable, world-class ecosystem. • Key Past Initiatives Recognition was bolstered by successful community and professional projects, including the Hadagasma Concert and social responsibility efforts via the Help Apeksha Fundraiser.
The Sri Lankan education landscape is undergoing a significant shift as private expenditure rises amidst major state reforms planned for 2026. While the government aims for modernization, the unregulated tuition industry has become a dominant economic force. • Overall Figures & Budgeting 2026 Education Budget: Rs. 704 Bn (approx. US$ 2.3 Bn based on current rates) has been allocated for 2026, marking the highest nominal allocation in history. GDP Share: This represents 2.04% of GDP, remaining well below the long-term national target of 6%. Reform Fund: Rs. 3,000 Mn is specifically earmarked for education reforms launching in 2026, targeting new syllabi for Grades 1 and 6. • The Rising Private Tuition Market Industry Value: The tuition sector is reportedly worth Rs. 122 Bn, evolving from a luxury to a household necessity. Household Spending: 55.6% of total household education expenditure is now directed toward private tuition. Regional Disparities: Dependence on private tutoring is highest in impoverished districts, including Mullaitivu (71%), Hambantota (68%), and Polonnaruwa (67%). • Sector Breakdowns & Challenges State Schools: Over 10,000 government schools serve 3.7 Mn students; however, 95% of surveyed students prefer tuition for better "time productivity." Marketing Intensity: Leading tuition centers allocate 25%–38% of their operational budgets to marketing rather than pedagogical quality. Higher Education: Only 23% of A/L qualifiers currently find placement in state universities, leaving over 130,000 students per year to seek private or international alternatives. _Note: Household expenditure data based on 2019 HIES and 2025/26 provisional budget statements._
The Sri Lanka Apparel Exporters Association (SLAEA) has identified deeper integration with India’s retail ecosystem and urgent policy reforms as top priorities for 2026 to counter rising regional competition from Vietnam and Bangladesh. • Market Performance (2025) • European Union: +12.48% (Sharpest growth, remains a strategic partner) • Non-traditional Markets: +4.8% • United States: +2.15% (Growth despite tariff uncertainties) • United Kingdom: +0.74% (Benefit expected from the new DCTS tariff-free access) • Strategic Priorities • Seeking quota-free access to the Indian market and integration into regional value chains. • Accelerating ICT/BPM integration through AI-driven operations and automated "smart factories." • Full operationalization of the Eravur Fabric Park to strengthen the domestic supply chain. • Policy & Reform Needs • Urgent implementation of the National Single Window (NSW) to improve the ease of doing business. • Introduction of a national e-invoicing system to manage liquidity following the removal of SVAT. • Securing the renewal of GSP+ to maintain competitiveness against India’s upcoming FTA with the EU. • Sustainability & ESG • Focus on circularity, emission reduction, and compliance with the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). • Investment in workforce development and gender equity to maintain ethical production standards.
The Cabinet of Ministers has approved awarding a long-term contract to Singapore-based M/s Epdesa Pte. Ltd. for the procurement of Petrol 92 Unleaded, ensuring energy security for the first half of 2026. • Contract Scope: The agreement covers the supply of 5 shipments of petrol. Each shipment will consist of 300,000 barrels (with a ±5% variation). • Timeline: The supply period is set for six months, effective from March 15, 2026, to September 14, 2026. • Procurement Process: Bids were called from registered suppliers of the Ceylon Petroleum Corporation (CPC). Epdesa Ltd. was selected from six competing bidders following recommendations from the Special Standard Procurement Committee. • Strategic Context: This move is part of the state's efforts to maintain a steady fuel supply through competitive international bidding, managing national energy requirements and foreign exchange allocations systematically. _Note: Summary based on provisional cabinet decision data._
The Government has initiated urgent measures to protect and reassess the Kotikambokka vein quartz deposit in Monaragala, identified as one of the largest mineral reserves in the country. • Resource Potential: Preliminary studies estimate the deposit spans 700 metres with a volume of approximately 3.1 billion tons. The Government has ordered a scientific recalculation to confirm quality and commercial viability. • Security & Protection: Minister of Industry and Entrepreneurship Development, Sunil Handunnetthi, directed the immediate implementation of a protection programme to prevent illegal mining. The Forest Conservation Department will formally demarcate the site boundaries. • Strategic Development: The site is currently not being mined. Future plans include: Resolving legal and environmental hurdles through inter-agency collaboration. Integrating the deposit into the national industrial and mineral development strategy. Calling for Expressions of Interest (EOIs) for a transparent, competitive mining process. • Economic Impact: The project aims to leverage high-purity quartz to diversify the economy and enhance national industrial output. Authorities emphasized that formal extraction will only commence following strict environmental safeguards and regulatory compliance. _Note: Resource estimates are based on provisional preliminary data._
The Pathfinder Foundation (PF) has convened its Seventh Diplomatic Dialogue to position Sri Lanka in global supply chains, following the "Mining Potential" report launched in Dec 2025. • Strategic Focus: Establishment of an International Study Group on Critical Minerals with partners from Australia, India, Japan, and the USA to facilitate FDI and pilot projects. • Key Resources: Focus on high-purity vein graphite (99.9% carbon), mineral sands, apatite, quartz, mica, and rare-earth elements (REEs) for EV batteries and energy transitions. • Industrial Development: Proposals for strategic processing zones, specifically in Trincomalee, to move from raw exports to high-value-added downstream products using nanotechnology. • Policy & Reform: The sector is to be included in the upcoming 5-year National Export Development Plan. Key priorities include: • Transitioning to a digital, one-stop licensing system. • Reducing institutional bottlenecks and regulatory delays. • Enhancing public-private partnerships to modernize mining operations. _Summary based on Pathfinder Foundation dialogue proceedings._
Salesforce South Asia CEO Arundhati Bhattacharya highlights a strategic shift in Sri Lanka, where Enterprise AI is moving from experimental use to a core driver of resilience and long-term competitiveness. • Strategic Focus Areas • Banking & Financial Services: AI is being integrated to strengthen operational efficiency and risk management amidst ongoing reforms. • Public Sector: Modernizing citizen-facing systems to improve responsiveness and service delivery. • Data Governance: Increased emphasis on data integrity, regulatory alignment, and ethical guardrails. • The "Agentic Enterprise" Model • Introduction of "Intelligent Agents" that work alongside humans to support customer engagement and compliance. • Focus on "explainable AI" to ensure transparency and maintain institutional trust. • Shift toward a digital workforce that balances automated productivity with human oversight. • Economic Impact • Positioned as a key opportunity for Sri Lanka to build sustainable economic momentum following a period of stabilization. • Aims to boost ICT/BPM and related high-growth tech sectors by fostering a "connected intelligence" framework.
Sri Lanka’s tourism sector has hit a major milestone, recording its highest-ever January arrivals with 277,327 visitors. This marks a 10% YoY increase, surpassing the previous record of 252,761 set in 2025. • Overall Performance • Total Arrivals: 277,327 (Highest-ever for January) • YoY Growth: 10% • Daily Average: 8,946 visitors (up from 8,154 in 2025) • Peak Day: 15 January (10,483 arrivals) • Top Source Markets • India: 52,061 arrivals (19% share, up 20% YoY) • UK: 29,540 arrivals (11% share, up 36% YoY) • Russia: 27,134 arrivals (Declined 26% YoY) • Germany: 17,776 arrivals • China: 14,003 arrivals • Strategic Outlook • 2026 Target: 3 million arrivals (following record 2.36 million in 2025). • Policy Moves: A free-visa scheme is slated for launch before the end of Q1 2026 to stimulate key markets. • Branding: Plans are underway to roll out a long-delayed nation branding initiative within the year. The strong start reflects robust recovery momentum despite previous disruptions, with European markets largely offsetting a dip in Eastern European arrivals.
Full-year 2025 data from IATA reveals a resilient global air cargo market, driven by e-commerce and shifting trade routes despite geopolitical uncertainties. • Overall Performance Global demand (CTK) rose 3.4% YoY in 2025. Global capacity (ACTK) increased by 3.7% YoY. Yields saw a minor dip of 1.5%, remaining 37.2% above 2019 levels. • Regional Highlights Asia-Pacific: Led global growth with a robust 8.4% increase in demand, benefiting from strong intra-Asia and Asia-Europe flows. Africa: Recorded 6.0% annual growth, ending December with a massive 10.1% surge. North America: The only region to contract, with demand falling 1.3% YoY due to tariff pressures and trade stagnation with Asia. • Economic Context & Outlook Global trade in goods grew 4.4% through November 2025. Growth was fueled by "front-loading" of deliveries ahead of new tariffs and the strength of global e-commerce. For Sri Lanka, these trends highlight the critical role of logistics and transportation hubs in tapping into the high-growth Asia-Europe corridors. 2026 forecast: Growth is expected to moderate to 2.4%, aligning with historical trends. _Source: IATA (Based on provisional full-year 2025 data)_
Sri Lanka is at a critical juncture in digitizing its tourism economy. Despite strong 2026 arrivals—exceeding 223,000 in early January—a significant "paperweight" remains as the retail and transport sectors resist cashless transitions. • Economic Landscape & Informal Sector • An estimated 40% of Sri Lanka’s GDP remains informal and "off the books." • Cashless transactions in the retail sector hover at just 20-25%, far behind regional competitors like Thailand and Vietnam. • Approximately 30-35% of the adult population lacks a bank account, hindering basic financial inclusion. • Barriers to Digital Adoption • High Processing Fees: Global cards (Visa/MasterCard) charge vendors 1.5%–3.5%, eroding thin profit margins. • Tax Anxiety: Vendors fear digital footprints will invite complex tax audits and para-tariffs. • Infrastructure Gaps: While digital literacy is fair, internet penetration lags behind tourism rivals. • Sector Highlights & Solutions • Apparel & Textiles and ICT/BPM sectors continue to lead formalization, but the tuk-tuk and SME tourism segments face "predatory pricing" and scams due to lack of transparent digital records. • LankaQR and Just Pay are existing tools that could emulate India’s UPI success, which handles 50% of global real-time retail transactions. • The proposed Unique Digital ID offers a foundation for a national Digital Payment Wallet to unify the tourism experience.
Global air passenger demand rose 5.3% in 2025, returning to historical growth patterns. This surge drove the passenger load factor (PLF) to a record 83.6%, reflecting high efficiency in filling seats despite significant supply chain constraints. • Sector Performance: • International Demand: Surged 7.1% YoY, reaching a record load factor of 83.5%. • Domestic Demand: Grew by 2.4%, with a load factor of 83.7%. • Capacity: Total available seats increased by 5.2% globally. • Regional Highlights: • Asia-Pacific: The top performer with 10.9% growth in international traffic and the highest load factor (84.4%). • Africa: Recorded the strongest load factor improvement (+0.9 ppt) to a record 74.9%. • North America: Reported the slowest growth at 2.1%. • Economic Implications: The aviation sector faced over US$ 11 Bn in extra costs due to supply chain delays for aircraft and engines. For Sri Lanka, this global momentum supported a historic milestone, with total tourist arrivals reaching a record 2.36 Mn in 2025 (up 15.1% YoY). • Challenges: IATA identifies decarbonization (via Sustainable Aviation Fuel) and supply chain reliability as the primary hurdles for sustaining this growth into 2026.
• Banking Sector leader People’s Bank celebrated Sri Lanka’s 78th Independence Day by launching its annual ‘Birth of Freedom’ program, aimed at fostering national pride and long-term financial planning. • Retail Banking Focus: The bank is gifting a Rs. 2,000/- ‘Isuru Udana’ Gift Certificate to every baby born island-wide between February 1st and 14th, 2026. • Strategic Objectives: • Encourages parents to open ‘Isuru Udana’ Children’s Savings Accounts to secure future financial stability. • Promotes financial inclusion from birth, a program active since 2006. • Strengthening community ties through direct hospital visits by bank staff to present vouchers. • Implementation: The initiative was inaugurated at Castle Street and De Soysa Hospitals by Chairman Prof. Narada Fernando and CEO/GM Clive Fonseka, with simultaneous activities across all island-wide branches. 📈
Global building materials giant Holcim has announced a strategic investment in Capsol Technologies, a Norwegian leader in carbon capture, to accelerate its goal of industrial-scale decarbonization. • Core Investment Goals Part of a CHF 2 billion (US$ 2.2 Bn) global commitment to carbon capture by 2030. Target to capture over 5 million tons of CO2 annually. Aiming for a 22% reduction in Scope 1 emissions per ton of cementitious material by 2030. • Technology Highlights Uses Hot Potassium Carbonate (HPC) solvent technology for post-combustion capture. Integrates a specialized heat recovery system to maximize energy efficiency. Designed to address the cement industry’s heavy footprint (approx. 8% of global CO2 emissions). • Sector & National Impact Cement & Construction: Critical for "hard-to-abate" sectors where 900kg of CO2 is typically emitted per 1,000kg of cement. Sustainability: The move aligns with global demand for "near-zero" building materials, supporting sustainable infrastructure and long-term employment in green tech. Regional Context: While the tech is being piloted in Europe (Germany), Holcim's global roadmap influences its wide footprint, including markets like Sri Lanka where sustainable construction is increasingly prioritized.
The Joseph Fraser Memorial Hospital (JFMH) Trust has pledged significant funding to modernize the Histopathology Unit at the University of Sri Jayewardenepura (USJ), aimed at enhancing healthcare infrastructure and diagnostic capabilities. • Phase 1 Initiatives: Focuses on establishing Immunohistochemistry (IHC) testing facilities. The JFMH Trust has already disbursed the first tranche of a full donation to enable in-house hormone receptor testing for breast cancer specimens. • Current Service Gap: The unit currently processes 3,800 - 4,000 specimens annually. Previously, approx. 500 - 600 cancer cases required external lab transfers for essential tests; Phase 1 will eliminate this dependency. • Future Expansion (Phases 2 & 3): The Trust and University have explored further restructuring, including: Automated diagnostic machinery and modern grossing stations. Digital Pathology software for instant clinician access to reports. Educational Tech: Multi-header microscopes for medical education and research collaboration with foreign universities. • Impact: This partnership strengthens Sri Lanka's medical research and diagnostic services sector, improving patient outcomes through faster, localized cancer diagnostics and advanced training for the next generation of medical professionals. _Status: Phase 1 implementation underway; detailed proposals for future phases pending._
Mastercard has launched the ‘Tap for Change’ campaign in partnership with the Colours of Courage Trust to support national healthcare infrastructure and oncology services. • Financial Commitment: Mastercard has pledged US$ 750,000 towards the construction of the Trail Cancer Hospital in Karapitiya. • Project Scope: The facility will be a 10-storey, 160-bed hospital serving both adult and paediatric patients. It features a bone marrow transplant unit, advanced diagnostics, and operating theatres. • Mechanism: Starting January 2026, every contactless (tap-to-pay) and e-commerce transaction made using a Mastercard debit or credit card in Sri Lanka will contribute to the donation pool. • Strategic Impact: The initiative leverages the growing ICT/digital payments ecosystem to address critical gaps in the healthcare sector, specifically expanding access for underserved patients in the Southern region. • Partnership: Collaboration between Mastercard and the Colours of Courage Trust (co-founded by Mahela Jayawardene) highlights the role of the private sector and NGOs in driving social impact through financial technology.
Industry leaders and global experts convened at the Amba Yaalu symposium to address the urgent transition toward environment-responsive tourism, highlighting a shift from quantitative to qualitative growth. • Economic & Workforce Dynamics Tourism is recognized as a primary global job creator, yet local female participation remains low at only 10% of the hospitality workforce. In contrast, other major foreign currency earners like tea and apparel & textiles maintain significantly higher employment rates for women. Average per-day visitor spend has decreased from US$ 170 (2018) to below US$ 140 currently, despite rising arrival numbers. • Environmental & Waste Management Sri Lanka faces a "terrorism against the environment," utilizing 20M shopping bags, 15M lunch sheets, and 10M PET bottles daily. The current plastic recycling rate stands at a low 3%. New regulations mandate plastic manufacturers to recover 40% of their production or face registration cancellation. • Strategic Sustainable Initiatives Launch of the island’s first carbon-calculated tour itinerary specifically targeting the high-spending, eco-conscious EU market. Focus on "slow travel," renewable energy integration, and increasing EV penetration to safeguard environmental assets. Emphasis on climate-responsive investments and data-driven decisions to bridge the gap between national adaptation plans and fiscal execution.
The Institute of Environmental Professionals Sri Lanka (IEPSL) will host a high-level CEO Forum tomorrow, 30 January 2026, focused on maintaining Environmental, Social, and Governance (ESG) standards during economic hardship. The event serves as a precursor to the EcoConvergence 2026 technical sessions. • Strategic Mandatory Compliance: As of January 2025, Sri Lanka has adopted SLFRS S1 and S2 sustainability disclosure standards. All listed entities on the Colombo Stock Exchange are mandated to achieve full compliance by 2026. • Key Economic Drivers: • Green Productivity: Aims to combine environmental stewardship with cost savings and profitability. • Growth Potential: The Asia-Pacific green economy is estimated to drive up to US$ 120 Bn in GDP growth and create 900,000 new jobs. • Export Market Access: Robust ESG credentials are now non-negotiable for exporters to retain access to the European Union and other major global trading partners. • Expert Panel: • Dr. Nandalal Weerasinghe (Central Bank Governor) on financial stability and sustainable development. • Kapila Rajapakse (CEA Director General) on navigating the evolving regulatory landscape. • Prof. Sugeeth Patabandige on the shift of capital toward environmentally responsible enterprises. The forum emphasizes that for the private sector, sustainability has transitioned from a discretionary initiative to a critical strategic growth lever for national economic resilience.
The Genesis Thought leadership series today hosts Prof. Friedhelm Goeltenboth to discuss Rainforestation Farming, a sustainable land-use model designed to restore biodiversity and boost rural incomes in the humid tropics. • Key Concept: Unlike conventional replanting, this system uses native forest and fruit tree species in a near-natural structure. It creates quick canopy cover to suppress invasive species and restore soil health before introducing shade-loving forest species. • Economic & Environmental Impact: • Diversified Income: Provides rural communities with revenue from fruit, timber, and shade-tolerant crops. • Ecosystem Services: Proven to restore endangered wildlife habitats within 4 years, reduce erosion, improve water retention, and enhance carbon sequestration. • Sector Relevance: Highly applicable to Sri Lanka’s agriculture and sustainability sectors, addressing the balance between food security and forest conservation. • Expert Profile: Prof. Goeltenboth brings 25+ years of experience across Asia, including Sri Lanka. His model is currently adopted by government agencies in the Philippines as a viable solution for landscape rehabilitation. • Event Details: Taking place today, 29 January, at 5.00 p.m. at the GENESIS: Dilmah Centre for Sustainable Future.
Colombo International Container Terminals (CICT) has launched a three-year (2025–2028) partnership with the Wildlife and Nature Protection Society (WNPS) to protect sea turtles and coastal ecosystems. The initiative, titled the Turtle and Coastal Health United Programme (TACHUP), targets the urbanized shoreline from Colombo Port City to Mount Lavinia. • Conservation Focus: Protection of five out of the seven global sea turtle species that nest along Colombo’s coast. Efforts include safeguarding nests, restoring coastal vegetation, and enhancing data collection via citizen science. • Proven Impact: The project scales up existing work that has recorded 680+ turtle visits in a single season, protecting over 15,900 eggs with a hatching success rate exceeding 80%. • Sustainability & ESG: This partnership aligns with Colombo’s status as a Ramsar Wetland City and reflects CICT’s commitment to responsible port operations and long-term ecological resilience. • National Context: By integrating local communities and schools, the programme promotes environmental stewardship within a critical trade gateway, balancing industrial growth with biodiversity.
The Sri Lanka Air Force (SLAF) Seva Vanitha Unit, in collaboration with Aitken Spence PLC, successfully concluded the “Clean Today, Green Tomorrow” initiative, marking a significant shift toward environmental stewardship as part of the SLAF's 75th Anniversary celebrations. • Core Objectives: The program moved beyond temporary clean-ups to embed long-term, measurable sustainability into daily military operations across all island-wide establishments. • Sector Focus & Champions: • Waste Management: Focused on segregation and eliminating single-use plastics. Champion: SLAF Trade Training School, Ekala. • Reforestation & Tree Planting: Aimed at biodiversity enhancement and green belts. Champion: SLAF Station Sigiriya. • Eco-Gardening: Promoted food security through organic cultivation. Champion: SLAF Base Katunayake. • Energy & Water Conservation: Implemented solar solutions, LED conversions, and rainwater reuse. Champion: SLAF Station Sri Jayewardenepura. • Public-Private Synergy: Aitken Spence PLC served as the sustainability partner, providing technical expertise and exposure to best practices at Heritance Kandalama and their tea estates. The Spence Impact Award was specifically awarded to SLAF Station Iranamadu for responsible operations in sensitive ecosystems. • Economic Relevance: By integrating sustainability into national defence, the initiative supports long-term resource resilience and aligns with global military trends where climate change is viewed as a national security risk.
Suwanda Industries, the producer of the globally recognized brand Cycle Pure Incense, has officially secured its ZeroCarbon Manufacturer recertification for 2025. This achievement solidifies its position as Sri Lanka’s only carbon-neutral manufacturer in the incense sector. • Environmental Sustainability: The certification was awarded by The Sustainable Future Group (SFG) following a comprehensive audit. Key drivers included the adoption of renewable energy, enhanced energy efficiency, and sustainable manufacturing processes. • Social Impact & Inclusion: Born from a 2009 initiative to support conflict-affected, women-led households, the company continues its focus on economic inclusion. Its "Women Packing Units Concept" empowers local women, integrating social responsibility with industrial growth. • Market Footprint: A joint venture between Sri Lanka’s Eswaran Brothers Ltd (a leader in value-added tea) and India’s N. Ranga Rao & Sons Ltd. The brand now exports to over 75 countries, featuring innovations like the heritage-inspired Parampara sticks. • Strategic Context: The recertification highlights the company's commitment to operational resilience and purpose-driven business, aligning environmental stewardship with community empowerment in the manufacturing sector.
The latest Global Workplace Report highlights a critical need for integrated wellness strategies as South Asia records the highest regional levels of daily anger and sadness among employees. Addressing mental health stigma is now a strategic priority for HRM and organizational sustainability. • Regional Context & Data South Asia leads globally in workplace emotional distress due to socio-economic pressures and societal stigma. The WHO reports ~1 billion people globally suffer from mental health disorders, with anxiety and depression being the most prevalent. • Integrated Wellbeing Framework Organizations are encouraged to adopt a holistic approach covering physical, mental, social, and financial wellbeing. Financial wellbeing is linked to performance, emphasizing the need for "paying worth" and providing access to financial management resources. • Strategic Workplace Interventions Leadership Role: Authentic conversations from the top regarding burnout and anxiety are essential to set the cultural tone. Policy & Training: Implementation of wellness and anti-harassment policies, coupled with regular training for the middle tier and line managers. Professional Support: Providing discreet access to in-house or on-call counselors to ensure confidentiality and professional diagnosis. • Innovation & Retention Psychological safety is a prerequisite for the ICT/BPM and creative sectors; management tolerance for project risks encourages new ideas. Public ridicule is cited as a primary driver for absenteeism and "quiet quitting," whereas private feedback preserves employee trust.
Experts and private sector leaders warn that reactive disaster management is deepening poverty, calling for a shift toward risk-informed development and resilient infrastructure. • Economic Impact & Poverty Link Natural disasters in Sri Lanka are increasingly intersecting with poverty and inequality. Experts note that repeated climate shocks expose structural weaknesses, often pushing vulnerable communities back into poverty cycles due to weak policy planning. • Private Sector & Recovery Funding The Rebuilding Sri Lanka Fund, established following Cyclone Ditwah, has mobilized Rs. 4.2 Billion from the private sector. John Keells Holdings Chairman Krishan Balendra emphasized that private investment must prioritize sustainability and community wellbeing to ensure long-term economic continuity. • Strategic Policy Shifts • Urban Planning: Warnings against unplanned expansion that places low-income groups in high-risk zones. • Nature-based Solutions: Utilizing wetlands and floodplains as protective assets rather than obstacles to development. • Institutional Reform: Moving from mere recovery to "building back smarter" by addressing underlying risks. • Priority Actions Panelists identified seven key priorities, including strengthening school-level awareness, improving early warning systems, and fostering blended public-private collaborations to bridge governance gaps.
Sri Lanka marks its 78th Independence Day today at Independence Square, with President Anura Kumara Dissanayake presiding over a nation reflecting on decades of post-colonial progress and systemic failure. While the ceremony proceeds with official pomp, the country remains at a critical crossroads. • Economic Landscape (Provisional 2026) GDP Growth: Projected at 4.0% – 5.0% for 2026, supported by recovering macroeconomic buffers. Inflation: January 2026 headline inflation recorded at 2.3%, with a target of 5.0% by year-end. Official Reserves: Surpassed US$ 6.8 Bn by end-2025, the highest post-crisis level. Debt Sustainability: Debt-to-GDP ratio projected to decline to 96.8% in 2026 from 114.2% in 2022. • Sectoral Highlights & Challenges Governance: The National People’s Power (NPP) government, one year into its term, faces high expectations to dismantle corruption and address poverty (24.5% rate) and social inequality. Public Services: Focus remains on preserving the legacy of free education and health care, despite dwindling public sector efficiency. Infrastructure: Budget 2026 allocates Rs. 91.7 Bn for irrigation and Rs. 11 Bn for state medical faculties. • Current Sentiment The 2026 celebrations are characterized by "minimal cost" budgeting (approx. Rs. 100 Mn) and a focus on national unity. However, public skepticism remains high as the administration grapples with implementing "system change" amidst ongoing strikes and socio-economic burdens.
The following summary reflects a managerial analysis of Sri Lanka's 78-year journey since 1948, evaluating national progress through the lens of management and governance. • Managerial Reflection Sri Lanka is assessed not as a "good or bad" nation, but as one that has been "ill-managed." Key historical gaps include a lack of strategic vision from statesmen and the failure to prioritize agriculture and industry growth. The nation's progress is unfavorably compared to Singapore, which transitioned from admiring Sri Lanka to far surpassing it due to superior planning and control. • Economic & Governance Challenges • Public Sector: Identified as the "driver" of the economic engine; requires a shift from "laggard" behavior to servant leadership to ensure efficiency. • Corporate Sector: Must act as the "engine of growth," moving toward a more inclusive, ethical, and transparent model. • Corruption & Discipline: Issues like the bond scam and administrative corruption underscore a desperate need for financial discipline and proactiveness. • Strategic Shift: Independence to Interdependence The analysis advocates for synergy (interdependence) rather than mere self-sufficiency. This involves: • Strengthening public-private partnerships to drive deliverables. • Cultivating empathic leadership to foster national reconciliation between diverse communities. • Moving beyond "rhetoric" to pragmatic, consistent decision-making across successive regimes. • National Outlook The "way forward" depends on transforming "laggards" into "leaders" at all levels of the ICT/BPM, apparel, and plantation sectors to convert declined economic growth into holistic prosperity.
• Overall Context: Historical records highlight the pivotal role of the Muslim community in securing Sri Lanka’s independence from British rule in 1948. Their "unconditional" support provided the necessary 75% consensus required by the British to ensure minority rights were protected before granting autonomy. • Political Contribution: Leaders such as Dr. T.B. Jayah, Sir Razik Fareed, and Dr. M.C.M. Kaleel prioritized national freedom over communal advantages. Despite potential disadvantages in representation, Muslim representatives voted in favor of the Dominion Status Bill on 9 November 1945. • National Stability & Integrity: • Demographics: By aligning with the majority, the community helped bridge the gap when the Sinhalese population alone could not meet the British-mandated support threshold. • Territorial Unity: The community vehemently opposed separatist calls, playing a crucial role in maintaining the island's territorial integrity. • Social Impact: Historically a peaceful group, the community faced immense displacement (e.g., ~130,000 driven from Jaffna) and economic loss due to ethnic conflicts they did not initiate. • Economic & Social Governance: This historical cooperation is cited as a foundation for communal harmony, with calls for modern authorities to recognize these sacrifices to foster future national stability and economic prosperity.
The Ilankai Tamil Arasu Katchchi (ITAK) has appointed 35-year-old Batticaloa District MP Shanakiyan Rasamanickam as its new Parliamentary Group leader. The move marks a significant generational shift and follows an internal leadership dispute. • Leadership Change: Rasamanickam replaces Jaffna District MP Sivagnanam Shritharan. The transition was triggered after Shritharan reportedly declined to step down from the Constitutional Council despite party objections regarding his voting record, which included support for military appointments. • Political Context: • Electoral Performance: In the recent general election, Rasamanickam secured the highest preferential votes in Batticaloa, where ITAK retained 3 seats. • Party Stance: The leadership emphasizes a return to core policies, specifically opposing militarisation and advocating for governance reforms and democratic accountability. • Disciplinary Action: ITAK has initiated disciplinary proceedings against Shritharan following his refusal to voluntarily relinquish the leadership post. • Institutional Impact: As a second-term MP and vocal critic of administrative overreach, Rasamanickam’s appointment signals a realignment within the party to address internal divisions and consolidate its stance in Parliament.
• Shiranthi Rajapaksa (FCID) The former First Lady was questioned for nearly five hours yesterday regarding alleged financial irregularities in the Siriliya Saviya fund. The probe focuses on suspicious transactions and the use of an anomalous NIC number (222222222V) to open the foundation's bank account during the former presidency. • Namal Rajapaksa (CID) The SLPP National Organiser and MP provided a statement for over four hours concerning his alleged links to organized crime figure 'Kehelbaddara Padme'. The MP appeared after returning from overseas, following an initial summons in January. • Legal Context Both investigations are being conducted separately by the CID and FCID under their respective mandates. These inquiries are part of a broader push for accountability regarding financial misconduct and criminal associations.
The Ministry of Finance has formally established the Tax Policy Analysis Unit (TPAU) under the Department of Fiscal Policy to strengthen evidence-based fiscal reforms and revenue management. • Core Functions The unit is tasked with comprehensive revenue analysis, evaluating tax expenditures, and conducting distributional analysis of tax policies. It will also provide critical support for international taxation and regional tax cooperation. • Strategic Objectives • Support the design, appraisal, and monitoring of national tax reforms. • Utilize internationally accepted methodologies for data-driven policy making. • Engage with key stakeholders to ensure transparent and effective tax administration. • IMF Collaboration Marking its operational launch, the unit completed a foundational capacity-building programme conducted by the International Monetary Fund (IMF) from January 19–30, 2026. Discussions with the Treasury Secretary and Director General of Fiscal Policy focused on integrating the unit into the broader national reform agenda. • Context The establishment of the TPAU is a key component of Sri Lanka’s structural reform commitments, aimed at enhancing fiscal discipline and ensuring long-term debt sustainability through modernized tax frameworks.
The 78th Independence Day serves as a critical junction for Sri Lanka, balancing resilient macroeconomic recovery against a backdrop of public frustration over the pace of systemic change and reconciliation. • Overall Economic Performance Based on provisional data for 2025, the economy maintained a positive trajectory with GDP growth accelerating to 5.4% in Q3 2025. Total export earnings for 2025 reached US$ 17.25 Bn, a 5.6% YoY increase, although the trade deficit widened to approximately US$ 7.9 Bn due to a surge in imports, including vehicle purchases totaling US$ 2.05 Bn. • Sector Breakdowns (2025 Performance) • Apparel & Textiles: Remained the primary revenue driver, growing 5.34% to US$ 4.91 Bn. • Tea: Earnings rose 4.97% to US$ 1.51 Bn, bolstered by a 10.18% increase in tea packets. • ICT/BPM: Continued to lead the services sector with an 8.81% growth, reaching US$ 1.64 Bn. • Coconut products: Emerged as a standout performer with a 42.66% surge to US$ 1.23 Bn. • Top Markets & Outlook The United States remains the largest export destination (US$ 3 Bn), followed by India (US$ 1 Bn), which saw a sharp 17.2% growth. For 2026, the government targets an ambitious 5-6% growth rate, supported by a planned Rs. 1.4 Tn in capital expenditure. However, the World Bank and IMF maintain more conservative forecasts of 3.1% to 5.2%, citing the need for sustained structural reforms and debt sustainability.
The legal and political landscape in Sri Lanka is facing a critical review as the role of the Executive Presidency and the Office of the Attorney General (AG) comes under intense scrutiny regarding the public trust doctrine and institutional independence. • Executive Presidency & Reform: Current discussions emphasize the shift of power from the President to independent commissions. While the 1978 Constitution centralized authority, recent jurisprudence and the 21st Amendment have increasingly held the Executive accountable to Parliament and the Judiciary. There is a growing call for a new Constituent Assembly to ensure a constitution with broad public legitimacy. • Attorney General’s Mandate: The AG remains the "face of the government" in criminal and public law, exercising quasi-judicial powers like nolle prosequi (terminating proceedings). Concerns persist over whether the office should be fully independent, as an autonomous AG could potentially conflict with the Executive’s role in national security and foreign relations. • Legal & Financial Accountability: • Article 12: Ensures equality before the law; recent Supreme Court rulings have used this to hold public officials accountable for "indecisions." • Public Finance: Under Article 148, Parliament maintains full control. Experts warn that any attempt to withhold funds from the Executive to curb power could render the government unworkable. • Presidential Immunity: Article 35 provides immunity during office, but private acts remain subject to legal challenge after the term ends. • Sector Impact: Strengthening the rule of law is viewed as vital for the ICT/BPM and investment sectors to ensure policy consistency and protect the public trust doctrine in state resource management.
Danish shipping giant Maersk (via APM Terminals) has been appointed as the "temporary administrator" of the Balboa and Cristobal ports, located at opposite ends of the Panama Canal. The move follows a landmark Supreme Court ruling in Panama that invalidated existing contracts held by Hong Kong-based CK Hutchison. ### Key Developments: • Judicial Shift: Panama's Supreme Court ruled that the concession to CK Hutchison (operating as Panama Ports Company since 1997) was unconstitutional due to "disproportionate bias." • Geopolitical Context: The change aligns with significant pressure from the United States, citing concerns over Chinese influence on the strategic waterway which handles 40% of US container traffic. • Economic Scale: The Panama Canal facilitates approximately 5% of total world trade; the management shift to a Western-aligned firm marks a pivot in global maritime governance. ### Strategic Impact for Sri Lanka: • Integrated Logistics: As Maersk also controls the Panama Canal Railway, this takeover strengthens their end-to-end global supply chain. This is highly relevant for Sri Lankan exporters in apparel & textiles and tea targeting the US East Coast. • Transshipment Reliability: Enhanced operational stability at this major chokepoint reduces the risk of global equipment imbalances. This supports the Port of Colombo, which recently hit a record 8.29 million TEU throughput in 2025, in maintaining predictable vessel schedules for East-West trade. • Trade Security: The reduction in geopolitical friction over the canal may stabilize shipping costs for South Asian transshipment hubs. _Note: This transition is based on a temporary administrative order following the court's annulment of the 25-year concession renewed in 2021._
India has significantly raised its budgetary support for Sri Lanka, positioning the island as a key recipient of bilateral aid within the region for the 2026-27 fiscal year. • Financial Overview: India has allocated INR 4 billion (approx. US$ 43.6 million) for Sri Lanka, reflecting a 33% increase from the INR 3 billion (US$ 32.7 million) provided in the 2025-26 revised estimates. • Regional Context: Despite a slight decrease in India's total foreign aid budget (INR 56.86 billion), Sri Lanka remains a high-priority partner. Other major recipients include Bhutan (INR 22.89 billion), Nepal (INR 8 billion), and the Maldives (INR 5.5 billion). • Historical Trend: The new allocation marks a recovery in aid volume compared to the actual expenditure of INR 3.17 billion recorded in 2024-25. • Strategic Impact: This increased funding is directed toward strengthening bilateral relations and supporting regional stability, which remains vital for Sri Lanka’s infrastructure development and economic recovery efforts.
A recent survey by the Social Scientists’ Association (SSA) reveals strong public satisfaction with the relief efforts following Cyclone Ditwah, particularly praising executive leadership and first responders. • Overall Institutional Performance • Head of State: 80% satisfaction rating for President Anura Kumara Dissanayake’s crisis handling. • Political Gap: Satisfaction with NPP politicians stood at 46%, while opposition figures trailed at 24%. • First Responders: Military, police, and volunteers secured over 80% approval. • Relief & Recovery Metrics • Immediate Action: 70% approval for rescue, relief distribution, and service restoration. • Early Warning: Only 52% satisfied with evacuation alerts; 67% with rebuilding support. • Transparency: 71.4% viewed the management of donor funds as transparent; 69% termed relief distribution as fair. • Key Sector Impacts & Gaps • Housing & Land Use: Over 50% cited settlements in high-risk zones and weak land-use enforcement as primary factors worsening the disaster. • Critical Gaps: 58% noted a lack of aid for lost documentation, while 47% lacked psycho-social support in safety centres. • Infrastructure: Inadequate drainage and water management remain significant systemic weaknesses. • Economic Context Based on provisional data, the cyclone caused an estimated US$ 4.1 Bn in direct damage (approx. 4% of GDP). While agriculture suffered US$ 814 Mn in losses, the construction and ICT/BPM sectors are expected to drive 2026 growth during the recovery phase. _Note: Findings based on an island-wide survey of 1,251 respondents across all 25 districts._
The Election Commission of Sri Lanka has officially opened applications for politically active organizations seeking formal recognition for the year 2026. This move ensures a transparent framework for parties intending to participate in the democratic process and contest future elections. • Application Timeline: Submissions are accepted from 28 January until 28 February 2026. Applications must be received by 3:00 p.m. on the closing date. • Strict Compliance Requirements: Parties must provide evidence of continuous political activity for at least four years. Documentation required includes: • Party constitution and current policy statement. • Audited financial statements and a list of office bearers. • Specific details of female office bearers over the past four years to promote gender inclusivity. • Approved symbol selection in accordance with official Gazette notifications. • Submission Channels: Prescribed forms are available at the Election Commission’s official website, district election offices, and the Office of the Election Secretary. Completed files must be submitted by post or by hand, clearly labeled for recognition. • Status Note: Recognition is contingent on a full review of the submitted documentation. Failure to meet the 28 February deadline or provide all required evidence will result in disqualification for the 2026 cycle.
• Industry Impact: Marian J. Rodrigo Candappa, a veteran of the Sri Lankan media landscape, has passed away. Her professional career was notably spent with major publishing houses Virakesari and Wijeya Newspapers, contributing to the country's Information & Media sector. • Community & Social Roles: Beyond her professional life, she was a prominent figure in civil society, holding active memberships in the Lions Club, the Colombo Chetty Association, and the Parish of Kotahena. • Final Rites: • The remains will lie at Lanka Florists, Punchi Borella, today (Feb 3) from 9:00 a.m. to 3:00 p.m. • Cremation is scheduled for 4:00 p.m. at the Old Crematorium, General Cemetery Kanatte. • Legacy: As the relict of the late Modestus Candappa, her passing marks the loss of a figure connected to the long-standing traditions of the Sri Lankan newspaper and printing industry.
The 48th Annual Navam Maha Perahera of the Hunupitiya Gangaramaya Temple concluded yesterday in Colombo, serving as a significant driver for the capital's cultural tourism and activity economy. The two-day procession (Jan 31 – Feb 1) drew massive crowds, including high-profile state officials and foreign visitors, highlighting its role in the national tourism calendar. • Overall Impact: The event acts as a critical "growth lever" for Colombo’s urban economy during the first quarter, traditionally a high-traffic period for international arrivals. With Sri Lanka targeting 3 million tourists and US$ 4.30 Bn in revenue for 2026, such large-scale cultural events are vital for reaching these milestones. • Sector Highlights: • Tourism & Hospitality: Attracted thousands of foreign spectators, boosting occupancy for Colombo-based hotels and informal accommodation sectors. • Handicrafts & Traditional Arts: Provided a commercial platform for hundreds of traditional dancers, drummers, and artisans, supporting rural livelihoods through cultural preservation. • Transport & Services: High domestic and international footfall stimulated local transport and retail activity in the Western Province, the nation's primary economic hub. • Patronage: The event saw bipartisan attendance, including Prime Minister Dr. Harini Amarasuriya and former Presidents, signaling strong institutional support for the creative economy and religious heritage.
The recent focus on systemic gaps in Sri Lanka's education highlights a critical need for Comprehensive Sex Education (CSE) to safeguard social and economic stability. Addressing these gaps is framed as a long-term investment in human capital. • Systemic Gaps & Productivity: Taboos surrounding reproductive health contribute to school absenteeism (up to 50% in certain regions due to period poverty) and poor health outcomes, directly impacting future workforce participation. • Legal & Social Literacy: Education on consent and legal boundaries is vital to navigate power dynamics in Sri Lanka’s hierarchical society, aiming to reduce the rising cases of child abuse and youth HIV infections (104 cases in 2023). • Sector Impact: • Healthcare: Improved literacy reduces the economic burden of reproductive disorders and unplanned pregnancies. • Labour Force: Empowering the youth (approx. 5.2 Mn by 2032) with informed decision-making skills is essential for national development. • Provisional Data Highlights: • Only 0.4% of surveyed adolescents demonstrate satisfactory reproductive health knowledge. • 50% of households face period poverty, affecting female education and economic mobility. • CSE is recognized as a "cost-effective" intervention by the UNFPA to bridge the 30–35% stagnation in female labour force participation.
A recent judicial decision dismissing an appeal by a man convicted of raping a 15-year-old girl has brought renewed focus to the rising incidence of sexual violence in Sri Lanka. The case highlights a systemic crisis where social silence often empowers offenders. • Overall Trends: Reports of sexual violence continue to rise across the country, with a high concentration of cases involving minors. A 2026 UN report highlights that a legacy of impunity and the failure to address harmful attitudes have led to a "climate of fear," with many cases remaining unreported due to social stigma. • Sector & Social Factors: • Education & Awareness: Lack of proper education on consent and gender equality is cited as a primary driver for dangerous misconceptions. • Social Influences: Factors compounding the crisis include substance abuse and exposure to violent content. • Impact on Human Capital: Trauma from survivors significantly hinders national employment and education outcomes, as victims face lifelong mental and emotional health challenges. • Global Comparison & Legal Gaps: • Singapore: Utilizes strict laws including long prison sentences, strokes of the cane, and professional reassessment of offenders before release. • Sri Lanka: Faces urgent calls for faster legal processes and stronger enforcement. Current legal obstacles include a 20-year statute of limitations and the lack of legal recognition for the rape of men (based on UN monitoring data). • Provisional Outlook: While the dismissal of recent appeals sends a message of zero tolerance, experts emphasize that prevention through community and religious leadership, along with parent-led education on boundaries, is essential for a sustainable solution.
The Colombo Institute for Human Sciences (CIHS) recently explored the evolving role of Ravana, highlighting its transition from myth to a strategic asset in Sri Lanka’s cultural tourism and political landscape. • Overall Figures & Economic Impact • Sri Lanka welcomed a record 2.36 Mn tourists in 2025 (up 15.1% YoY), surpassing the 2018 peak. • Tourism earnings exceeded US$ 3.2 Bn for 2025, driven by a surge in high-value experiential travel. • The "Sri Ramayan Trails" project targets millions of pilgrims, leveraging AI and AR to monetize 50+ historical sites. • Sector & Market Breakdown • Top Market: India remains the undisputed leader with 531,511 arrivals in 2025 (22.5% share), growing by 27% YoY. • Heritage Tourism: A key growth driver; global markets are projected to reach US$ 641.64 Bn in 2025. • Tourism Diversification: Local narratives in Kandy and the Knuckles range are being "repackaged" as a consumable brand for the ICT/BPM and digital nomad segments. • Strategic Outlook • Scholars warn of "hegemonic" North Indian versions eclipsing local traditions, affecting how sites like Seetha Eliya are marketed. • The commercialization of the "Ravana" brand is seen as a stabilizing force for national sovereignty and foreign exchange recovery. _Summary based on 2025 SLTDA provisional data and CIHS academic proceedings._
• Archbishop of Colombo, Cardinal Malcolm Ranjith, held an official meeting with Pope Leo XIV at the Vatican on Friday, January 23, 2026. • The meeting was formally documented in the Holy See News Bulletin, marking a significant engagement between the Sri Lankan Catholic hierarchy and the global papacy. • Accompanying the Cardinal was Fr. Derinton Subasinghe, Secretary to Cardinal Ranjith. • While specific discussion points were not detailed in the provisional bulletin, such high-level meetings typically address ecclesiastical matters and the current socio-economic landscape of Sri Lanka.
The US-Sri Lanka Fulbright Commission (US-SLFC) has announced its awards competition for the 2027-2028 academic year. These programs focus on human capital development, education, and professional capacity building to strengthen bilateral ties. • Academic & Professional Fellowships Master’s Fellowships: For outstanding graduates with a 4-year degree and 1 year of work experience. Deadline: May 31, 2026. Visiting Scholar Awards: For post-doctoral research or professional projects. Priority is given to fields benefiting Sri Lanka's national context. Deadline: October 1, 2026. Hubert H. Humphrey Fellowship: A 10-month non-degree program for mid-career leaders committed to public service. Deadline: June 30, 2026. • Teaching & Institutional Support Teaching Excellence (TEA): Six-week exchange for secondary-level teachers with 5+ years of experience. Deadline: March 31, 2026. Specialist Awards: Enables Sri Lankan higher education, government, and NGO institutions to host U.S. experts for 2-6 weeks. Rolling Deadline. • Impact & Heritage Established in 1952, the US-SLFC has facilitated exchanges for over 2,000 Sri Lankans and Americans over 73 years. Programs aim to build institutional planning and workforce development through collaborative linkages with U.S. entities.
• Event Overview: The sacred corporeal relics of the Buddha, discovered in Gujarat, India, will be brought to Sri Lanka for public veneration at the Hunupitiya Gangaramaya Temple from 4 to 11 February. • Diplomatic Context: This historic event follows discussions between President Anura Kumara Dissanayake and Indian Prime Minister Narendra Modi. This marks the first time these specific relics have ever been moved outside of India. • Logistics & Governance: Preliminary arrangements are being coordinated by the Presidential Secretariat, involving the Ministry of Public Security and the Ministry of Buddhasasana. The relics arrive at Bandaranaike International Airport on 4 February. • Economic & Social Impact: • Expectation of a vast influx of devotees to Colombo, necessitating extensive state and private sector patronage for crowd management and facilities. • Viewed as a significant milestone for the tourism (religious/cultural) and services sectors, fostering a local Buddhist revival and strengthening bilateral cultural diplomacy. • Key Officials: The initiative involves the Tri-Forces, Police, and the Colombo Municipal Council to ensure public safety and logistical efficiency during the seven-day period.
• Event Overview: Former Minister Imthiaz Bakeer Markar launched his latest publication, _‘The Heritage of the Homeland Trampled by a Superpower’_, at the Lakshman Kadirgamar Institute, Colombo. The book compiles decades of speeches and reflections advocating for Palestinian self-determination and human rights. • Diplomatic Context: The event underscored Sri Lanka’s consistent historical alignment with the Palestinian cause. Palestinian Ambassador Ihab M. Khalil and high-ranking local officials, including the Deputy Speaker of Parliament, emphasized that the issue is a principled defense of humanity rather than religious advocacy. • Key Humanitarian Data: • Casualties: Over 72,000 civilians killed since October 7, 2025. • Displacement: Hundreds of thousands remain displaced despite a current ceasefire. • Status: The humanitarian crisis is reported as critical with no signs of immediate easing. • National Policy Reflections: Speakers, including former diplomats and legal experts, highlighted that foreign policy reflects national values. Notable concern was raised regarding the consistency of Sri Lanka’s historical stance, specifically criticizing recent decisions such as sending local journalists to Israel for training. • Conclusion: The publication serves as a historical record of Sri Lanka-Palestine relations and a call for international institutions to uphold international law and protect civilian lives in conflict zones. 🇱🇰
The Ministry of Education has taken stern disciplinary action following the controversy surrounding an inappropriate web reference in the new Grade 6 English module. • Compulsory Leave & Suspensions: NIE Deputy Director General Darshana Samaraweera has been sent on compulsory leave. Additionally, two other officials have been interdicted (suspended) as investigations into alleged irregularities intensify. • Status of Reforms: The Cabinet has decided to postpone the implementation of the Grade 6 education reforms to 2027. Distribution of the printed modules remains suspended following the discovery of a link to an adult-content website. • Financial Impact: The Ceylon Teachers’ Union (CTU) estimates that nearly Rs. 1 Billion has already been spent on these reforms. Concerns have been raised regarding the recovery of these taxpayer funds and the additional costs required for content revision. • Ongoing Probes: The Criminal Investigation Department (CID) and an internal NIE committee are conducting parallel inquiries. The Director General of the NIE, Prof. Manjula Vithanapathirana, previously stepped down to facilitate these probes. _Note: Action is based on provisional findings from internal and CID investigations._
The Bar Association of Sri Lanka (BASL) has initiated a landmark Fundamental Rights (FR) petition (SC/FR/101/2025) before the Supreme Court, challenging the systemic failure to prevent violent ragging in higher education. • The Incident: The petition follows the tragic suicide of Charith Dilshan, a second-year student at Sabaragamuwa University, after a brutal and degrading ragging ordeal on 26 April 2025. • Legal Stand: The BASL argues that ragging is a violation of Article 11 (freedom from torture) and Article 12(1) (equal protection of the law), rather than a mere "student tradition." • Supreme Court Action: The Court has granted leave to proceed and issued 11 interim orders. These include directives to the IGP and University Grants Commission (UGC) to report on the status of investigations and the enforcement of the Anti-Ragging Act No. 20 of 1998. • Systemic Accountability: The case names 69 respondents, including university officials and state authorities, addressing long-standing institutional "inertia" and the normalization of student violence. • Future Outlook: Beyond justice for the victim, the initiative seeks a national anti-ragging strategy and mandatory safety guidelines to protect the ICT/BPM and academic talent pools essential for Sri Lanka’s future human capital.
Senior clergy in the Holy Land have issued a joint statement condemning the rise of "Christian Zionism," labeling it a "damaging ideology" that threatens the historical presence and unity of Christianity in the region. • Core Allegations: The Patriarchs and Heads of Churches in Jerusalem accused outside political actors and local individuals of advancing agendas that fracture the "unity of the flock" and disregard the authority of established church leadership. • Geopolitical Concerns: Church leaders expressed deep concern over the support these ideologies receive from "certain political actors in Israel and beyond," noting that such interference undermines the future of the world’s oldest Christian communities across the Middle East. • Economic & Social Impacts: • Advocates of the "prosperity gospel" are linked to significant financial donations supporting Israeli settlement expansion and land confiscation. • Leaders claim these actions marginalize Palestinian Christians and entrench the occupation, creating an "erosion" of the Christian presence. • The statement highlighted that these outside agendas are increasingly "welcomed at official levels" both locally and internationally, which the clergy deem an unacceptable intrusion into internal church life. • Current Status: Based on the statement released on January 17, 2026, Jerusalem’s historic leadership remains in high alert over the potential displacement of their communities and the loss of church property due to shifting political and religious alliances.
A significant shift in AI investment is targeting physical environments, potentially extending automation risks to traditionally manual sectors. Startups are raising billions to develop "software brains" for robots capable of navigating complex, real-world settings. • Investment Highlights: Toronto-based Waabi raised up to US$ 1 Bn for autonomous transport, marking a record Canadian startup round. Skild AI (Pittsburgh) secured ~US$ 1.4 Bn at a US$ 14 Bn valuation, while Field AI raised nearly US$ 400 Mn for hazardous sectors. • Sector Impact: Automation is moving beyond white-collar tasks toward logistics, construction, energy, and food preparation. Key applications include plumbing, welding, and vehicle repairs by robots that understand physics and varying physical conditions. • Strategic Approaches: Developers are split between using vast real-world data and "world models" (simulated environments incorporating gravity and physics). The latter is championed by AMI Labs, a new venture by former Meta AI lead Yann LeCun. • Economic Implications: While hardware costs and transition expenses may slow immediate adoption, the shift poses long-term questions for labor-intensive industries. For an economy like Sri Lanka, this trend highlights the future importance of ICT/BPM integration within manufacturing and logistics to maintain global competitiveness.
SLASSCOM has selected 25 high-potential Sri Lankan startups for a fully-funded, six-week international residential entrepreneurship program at IIT Madras Pravartak, India. Supported by the High Commission of India, the initiative aims to scale local innovation into the global market. • Program Details: Titled "Mastering the Startup Journey," the residency runs from 2 February to 14 March 2026. It focuses on strategy, product-market fit, and internationalization within India’s vast investor ecosystem. • Sector Diversity: The cohort represents a broad spectrum of the ICT/BPM and advanced manufacturing sectors, including AI, automation, health-tech, and renewable energy. • Strategic Impact: Part of a broader bilateral agreement, this follows the creation of 700 training slots for Sri Lankans to enhance national competitiveness and export-led growth. • Key Participants: Selected from over 100 applicants, the group includes startups such as SpectrifyAI, Volfpack Energy, and MediMan Life, highlighting the country's diversifying tech landscape. This initiative underscores SLASSCOM's goal of positioning Sri Lanka as a global innovation hub by fostering cross-border collaboration and entrepreneurial capacity.
Sri Lanka’s innovation ecosystem marked a significant milestone at the AsiaBerlin Summit 2025, positioning the nation as a strategic digital partner for Europe. A self-funded delegation of 11 tech companies showcased solutions across high-growth verticals, strengthening the country's footprint in the global ICT/BPM and technology sectors. • Core Participation & Representation The delegation, led by Chief Adviser to the President on Digital Economy Dr. Hans Wijayasuriya, represented diverse sectors including healthtech, biotech, greentech, e-mobility, fintech, and deeptech. Key participating entities included hSenid Business Solutions, PayMedia, ChargeNet, and DiabSense. • Strategic Outcomes & Networking The summit facilitated high-level engagement with European policymakers and global industry leaders from organizations like Porsche Consulting and Charité. Networking data indicates high commercial traction: 80% of delegates initiated new business leads or partnerships. 80% of participants established at least 4-7 meaningful business connections. 20% of the delegation secured over 13 high-value contacts. • Economic Impact & Future Outlook The initiative aligns with Sri Lanka’s national digital vision to drive export growth and international collaboration. The self-funded nature of the participation underscores the maturity and determination of the local startup ecosystem to integrate into the global supply chain, shifting from regional presence to cross-continental innovation partnerships.
The Ministry of Science and Technology has launched the nation's first Technology Incubation Centre at the University of Vavuniya, marking a significant step in regional innovation and startup development. • Strategic Objective The centre aims to commercialize research and foster entrepreneurship in the Northern Province. It is part of a broader national initiative to establish 24 such centres across island-wide state universities to strengthen the SME sector and improve product standards for export markets. • Grassroots Integration Operated in collaboration with the Vidatha Program, the initiative focuses on transferring technology to rural areas and supporting small-scale enterprises to bridge the gap between academic research and commercial application. • Youth & Education Focus The launch included the establishment of 172 Young Inventors Clubs (YICs) and School Science Societies across Vavuniya, Mullaitivu, and Mannar. These programs, supported by the Sri Lanka Inventors Commission (SLIC) and the National Science Foundation, are designed to promote STEM education and creative thinking among students. • Economic Impact By providing infrastructure for ICT/BPM and tech-based startups, the project seeks to diversify the regional economy and enhance the global competitiveness of Sri Lankan-made products. ---
BOV Capital, a pioneer in Sri Lanka's venture capital space, has announced landmark exits and a public listing, signaling a maturing startup ecosystem and high investor confidence. • Key Milestones (2025/26): • Exits: Successfully exited from IFINITY (Fintech), Roar Global (Digital Marketing), and Cultiv8 (Agri-Tech). • Public Listing: Insureme.lk (Insure-tech) was officially listed on the Colombo Stock Exchange (CSE). • Fund Performance: Exits were realized from Fund 1 and Fund 2 (Dialog Axiata Digital Innovation Fund - DADIF). • Strategic Portfolio & Impact: • Ongoing investments include Scybers (Cybersecurity), MyDoc (Digital Health), and iConic Devices (Industrial IoT). • The firm manages US$ 15 Mn in Assets Under Management (AUM), focusing on $500,000 ticket sizes for high-growth tech ventures. • These successes contribute to economic diversification, high-value job creation, and positioning Sri Lanka as a regional digital hub. • Future Outlook: • Fund 3 Launch: Finalizing for 2026; deployment is pending the Government of Sri Lanka’s resolution of double taxation issues expected by early 2026. • Investment Focus: Targeted at the next wave of "legendary" high-growth startups to drive FDI and innovation.
WNPS PLANT, in collaboration with the Dutch Otter Fonds and the Lanka Environment Fund (LEF), has launched a groundbreaking initiative to empower female entrepreneurs through forest plant nurseries. The project addresses a critical bottleneck in Sri Lanka’s reforestation efforts—the shortage of native montane plants. • Economic Empowerment: 5 female entrepreneurs from Ginigathhena, Welimada, Bandarawela, Nawalapitiya, and Ratnapura have been selected to own and manage nurseries. The initiative provides startup funding, intensive training, and a guaranteed buy-back safety net for their output. • Conservation Impact: The nurseries will supply essential native and endemic species required to create connected forest corridors in the southwestern quarter of the island. This "community-bridge" model ensures that restoration is locally led and sustainable. • Sector Focus: • Environmental Restoration: Targets high-demand, slow-growing native species for large-scale reforestation. • Micro-Entrepreneurship: Transitions rural women from daily labor to business leadership, providing financial independence and uplifting families. • Private Sector Engagement: Leverages donor funding (Otter Fonds and LEF) to fill gaps where traditional nurseries have struggled. • Strategic Shift: Moving beyond mere tree planting, the program integrates livelihood enhancement as a core pillar of conservation, transforming local residents into long-term custodians of the ecosystem. _Based on news data from Jan 07, 2026._ --- Would you like me to track the expansion of these forest corridors or find more details on current LEF funding opportunities for SMEs?
The U.S. Embassy has announced an additional US$ 2 million in humanitarian assistance to support Sri Lanka’s recovery from Cyclone Ditwah. This follows an initial US$ 2 million grant released in December 2025, bringing total U.S. disaster aid to US$ 4 million. • Key Highlights: • Total Assistance: US$ 4.0 Mn (Doubled from initial commitment). • Impact Area: Targeted relief for Ampara, Badulla, Gampaha, Kegalle, Puttalam, Ratnapura, and Central Province estate communities. • Economic Recovery: Focus on restoring basic infrastructure, small-scale irrigation, and reviving local food production to stabilize rural livelihoods. • Sector Breakdown: • Food Security: Emergency nutrition for mothers/children and essential food items via the World Food Programme (WFP). • Livelihoods: Support for families to resume economic activity and local production. • Infrastructure: Improving drainage and flood-mitigation (e.g., polysacks for sandbagging) to protect SMEs and housing. • Context: The assistance aims to mitigate the disruption caused by Cyclone Ditwah, which impacted all 25 districts and estimated total damages at US$ 4.1 billion (approx. 4% of GDP). The aid is being implemented through trusted partners like World Vision and the WFP to ensure accountability.
A group of 100 activists, including academics and clergy, has formally condemned the National People’s Power (NPP) government for expanding ties with Israel. They describe the move as a "moral failure" and a reversal of the administration's prior stance on Palestinian rights. • Labour & Employment Highlights • A new Memorandum of Understanding (MoU) was signed on 22 December 2025 by Deputy Minister Arun Hemachandra to facilitate recruitment in the service sector (Protocol 'G'). • This follows existing agreements for agriculture, construction, and caregiving jobs, intended to replace Palestinian labour. • Data shows 6,092 workers secured jobs in Israel's construction sector by March 2025, with 1,018 departures recorded early that year. • Tourism & Diplomacy • Activists criticized the visa fee waiver for Israeli tourists, which includes IDF soldiers on vacation. • The government defended these "readily available economic incentives" as part of a strategy to reach 3 Mn visitors and US$ 5.00 Bn in revenue for 2025. • The delegation's refusal to meet Palestinian Authority representatives in the West Bank was cited as a shift from Sri Lanka's historic non-alignment policy. • Economic Context • The shift is driven by the need for foreign exchange and remittances following the 2022-2023 crisis. • While total foreign employment departures saw a marginal decline in 2025, Israel remains a growing niche market for Sri Lankan labour. _Summary based on activists' letter and provisional 2025/2026 economic data._
The Bangladesh Government has indefinitely banned the broadcast and streaming of the Indian Premier League (IPL) 2026. The move marks a significant escalation in diplomatic and sporting friction between the two South Asian neighbors. • Core Dispute: The ban was triggered by the BCCI directing the Kolkata Knight Riders to drop Bangladeshi pacer Mustafizur Rahman. Bangladesh’s Ministry of Information described the "unceremonious" removal as a move that "defied logic" and "aggrieved" the public. • Economic Impact: • Experts estimate the broadcasting ban will have a negligible impact on the IPL's core revenue (less than 2%), as media rights are contractually locked through 2027. • Local Bangladeshi broadcasters and ad agencies face the sharpest losses due to the sudden removal of regional ad inventory. • Major advertisers like Mahindra, Flipkart, and Godrej may see reduced regional reach, though most FMCG giants have already streamlined operations. • T20 World Cup Standoff: • The Bangladesh Cricket Board (BCB) has refused to travel to India for next month’s T20 World Cup, citing "safety and security" concerns. • The BCB formally requested the ICC to relocate its matches to Sri Lanka, the tournament's co-host. • Provisional Update: Reports indicate the ICC has rejected the relocation request, informing Bangladesh they must play in India or risk forfeiting points.