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📈 Sri Lanka Exports Hit Record US$ 7.39 Bn in First 5 Months

Sri Lanka’s export sector has achieved its highest-ever performance for the first five months of the year, signaling resilient economic recovery despite global headwinds. • Overall Performance: Total export earnings surpassed US$ 7.39 Bn, reflecting a strong year-on-year (YoY) growth of 7.56% compared to the same period last year. • Sector Dynamics: While traditional sectors like apparel & textiles face minor headwinds due to soft global demand (e.g., major manufacturers like Teejay Group reported a 10% YoY revenue dip), diversification efforts are picking up. • New Growth Engines: The Export Development Board (EDB) is heavily focusing on expanding petroleum-related and logistics exports, aiming to leverage national infrastructure to double future growth. • Bilateral Milestones: Currency developments show the Sri Lankan Rupee appreciating further against the US Dollar. Additionally, the EDB expects proposed Rupee-denominated trade mechanisms with India to lift bilateral commerce by 40% over the next two years. _Note: Figures are based on the latest provisional export data released on June 25, 2026._

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📈 Sri Lanka Exports Hit Record US$ 7.39 Bn in First 5 Months

Sri Lanka’s export sector has achieved its highest-ever performance for the first five months of the year, signaling resilient economic recovery despite global headwinds. • Overall Performance: Total export earnings surpassed US$ 7.39 Bn, reflecting a strong year-on-year (YoY) growth of 7.56% compared to the same period last year. • Sector Dynamics: While traditional sectors like apparel & textiles face minor headwinds due to soft global demand (e.g., major manufacturers like Teejay Group reported a 10% YoY revenue dip), diversification efforts are picking up. • New Growth Engines: The Export Development Board (EDB) is heavily focusing on expanding petroleum-related and logistics exports, aiming to leverage national infrastructure to double future growth. • Bilateral Milestones: Currency developments show the Sri Lankan Rupee appreciating further against the US Dollar. Additionally, the EDB expects proposed Rupee-denominated trade mechanisms with India to lift bilateral commerce by 40% over the next two years. _Note: Figures are based on the latest provisional export data released on June 25, 2026._

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🏛️ Parliamentary Committee Room Dispute Halts CoPF Proceedings

Based on statements made in Parliament yesterday by Committee on Public Finance (CoPF) Chairman MP Dr. Harsha de Silva, the vital oversight work of the committee has effectively ground to a halt due to a logistical dispute over meeting spaces. • The Conflict: The Committee on Public Enterprises (COPE) has sought exclusive use of the designated Parliament committee room from Tuesday to Friday, from morning until evening. • The Impact: This scheduling arrangement leaves almost no room for the CoPF to conduct its regular proceedings and fulfill its public finance oversight responsibilities. • The Appeal: Dr. de Silva emphasized that committees do not own rooms in Parliament, urging an immediate resolution to the resource clash so that critical reviews of public finance and governance issues can resume. _Note: There was no immediate response from COPE regarding the matter in Parliament._

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🇨🇦 High Commission of Canada Relocates to Colombo 7

• Strategic Move: The High Commission of Canada to Sri Lanka and the Maldives has officially relocated its Chancery from 5th Lane to newly renovated premises in Colombo 7. • Purpose: According to official statements, the relocation reflects Canada's continued commitment to strengthening diplomatic, social, and economic engagement with both the government and the public of Sri Lanka and the Maldives. • Key Dates & Location: All appointments, services, and official correspondence have shifted to the new address effective from 24 June, 2026. • New Address: No. 6, Srimath R. G. Senanayake Mawatha, Colombo 07, Sri Lanka. • Visitor Advisory: The High Commission urges the public to schedule appointments in advance and consult their official website for updated program details and consular services.

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⚖️ Former Intelligence Chief's Detention: Bishop Urges Due Process Over Premature Claims

• Context: Rev. Asiri P. Perera, Retired President Bishop of the Methodist Church Sri Lanka, issued an open letter to Manohary Sallay, wife of former State Intelligence Service (SIS) Director Suresh Sallay. • Key Issues Raised: • Legal Integrity: The Bishop emphasized that innocence or guilt must be determined by the legal system, not public declarations. He noted that asserting innocence prematurely risks undermining judicial integrity and dismissing the victims of the 2019 Easter Sunday terror attacks. • Political Manipulation: The letter questioned whether disgruntled politicians are using the family's situation as a pawn to advance their own agendas under the guise of "persecution." • Transparency: The Bishop critiqued Mrs. Sallay's choice to remain masked during daily media statements, suggesting it impacts her credibility and raises questions about transparency. • Spiritual Concerns: Addressing Suresh Sallay's refusal of food and water, the Bishop suggested it may stem from unresolved internal conflict rather than a "fast unto death." He urged the family to seek pastoral or clergy visits to encourage reflection and repentance. • Conclusion: The open letter closed with an appeal to prioritize national truth and justice over marital loyalty, urging the family to let the ongoing investigation and courts proceed without interference.

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⚖️ Suresh Sallay Detention: Culpability vs Political Scapegoating

A political and legal debate has intensified in Sri Lanka following the 100+ day detention of former State Intelligence Service (SIS) Director Suresh Sallay under the Prevention of Terrorism Act (PTA) over his alleged links to the 2019 Easter Sunday attacks. Following a hunger strike, Sallay's health deteriorated, leading to his transfer to the Colombo National Hospital ICU. • The Core Allegations: Sallay's detention stems from testimony by Azad Maulana (former aide to Sivanesathurai Chandrakanthan), who alleged he arranged a 2018 meeting between Sallay and extremist groups linked to Zahran Hashim. Maulana claimed Sallay suggested the Rajapaksas needed a security disaster to secure the presidency. • Political & Public Fallout: Nationalistic political forces accuse the current NPP Government of unfairly targeting Sallay to appease Catholic Church leaders for political mileage. Conversely, the government maintains the move is strictly to deliver justice to the families of the 270 victims. • Narrative Contradictions: The report notes inconsistencies in the political manipulation narrative. The SLPP had already won the 2018 local elections convincingly (40% SLPP, 12% UPFA) 14 months before the attacks, driven by the unpopularity of the Yahapalana government. Furthermore, the claim that radical Islamic extremists would orchestrate an attack to benefit Gotabaya Rajapaksa—who was viewed unfavorably by the Muslim community due to his links with the Sinhalese Buddhist nationalist Bodu Bala Sena—remains highly debated. • Credibility Concerns: The credibility of the key witness, Azad Maulana, has also faced scrutiny following a police complaint by his second wife regarding a false identity, post the release of the Channel 4 documentary. The final outcome relies heavily on judicial evidence free from political pressure.

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📝 Sri Lanka G.C.E. O/L Results Highlight Urgent Need for Education Reform

A total of 450,000+ students recently sat for the G.C.E. Ordinary Level examinations, sparking fresh discussion on national education restructuring to support the modern marketplace. • Key Statistics & Funnel Effect: • 73% of candidates (~328,500 students) qualified to pursue Advanced Level (A/L) studies. • Only around 40,000 students eventually secure placement in State universities annually, leaving a vast majority to navigate alternative pathways. • Market Gaps & Economic Context: • Traditional pathways over-index on academic competencies while under-delivering on practical skills, communication, and adaptability required by modern industries. • Employers report significant readiness gaps even among university graduates, limiting immediate employment efficiency in a rapidly changing economy. • Reform Priorities & Strategic Diversification: • A shift away from high-stakes exam ranking toward holistic development including technology, sports, and leadership. • Call to elevate the dignity, visibility, and structured support for non-traditional corridors including technical & vocational training, ICT/digital skills, apprenticeships, and entrepreneurship support. • The Prime Minister personally holding the education portfolio signals high-level state prioritization for these structural reforms.

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🚨 Alert: Sophisticated NIC Scam via WhatsApp Exploiting DRP Identity

The Sri Lanka Computer Emergency Readiness Team (Sri Lanka CERT) has issued an urgent warning regarding a highly convincing phishing scam targeting citizens through WhatsApp. • The Tactic: Fraudsters send messages masquerading as official communications from the Department for Registration of Persons (DRP). They falsely claim recipients must verify their National Identity Card (NIC) data to enhance central database security. • How It Gains Trust: Messages include the victim's actual full name, address, and NIC number, alongside realistic details like biometric requirements, official-looking contact info, and the forged designation of the Commissioner General. • The Hook: Victims are given a sudden appointment and warned that failure to comply will result in a temporary suspension of services linked to their NIC. • The Payload: Panic leads victims to call the provided fraudulent helpline. Scammers then manipulate them into filling out fake forms and disclosing sensitive data, including bank passwords and One-Time Passwords (OTPs), resulting in immediate financial theft. ⚠️ Official Stance: Sri Lanka CERT stresses that the DRP never conducts identity or information verification via WhatsApp. Citizens must independently verify any such requests through official government channels before sharing any personal or financial information.

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🧘‍♂️ 12th International Day of Yoga Celebrated in Colombo

The 12th International Day of Yoga (IDY) was celebrated at Independence Square in Colombo under the theme _“Yoga for Healthy Ageing,”_ focusing on mobility, mental well-being, and holistic wellness. Organized by the Indian High Commission and the Swami Vivekananda Cultural Centre, the event saw collaboration with Sri Lanka’s Ministry of Health and Ministry of Public Administration. • Key Highlights & Participation: • Over 2,000 participants attended the main event, including Indian High Commissioner Santosh Jha, Sri Lankan Ministers, MPs, and personnel from the Tri-Forces and Sri Lanka Police. • Parallel events were held by Indian Consulates and Assistant High Commissions in Hambantota, Jaffna, and Kandy to ensure island-wide coverage. • An AYUSH Information Kiosk was featured alongside free consultations from Siddhalepa Ayurveda medical professionals to promote traditional medicine. • Institutional Expansion: • A preliminary island-wide event on June 18 involved simultaneous yoga sessions across 112 Ayurveda hospitals in Sri Lanka. • The High Commission facilitated ~55 localized yoga events across key institutions, including the University of Sri Jayewardenepura, the Colombo Municipal Council, and the Chartered Accountants of Sri Lanka. _Note: Sri Lanka was an original co-sponsor of the 2014 UN General Assembly resolution establishing June 21 as the International Day of Yoga._

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🎭 Sri Lankan Theatre Group Set for Historic Germany Tour After Final Colombo Show

The acclaimed Stages Theatre Group (STG) will perform its powerful production, "DCS: 7 Decades of Sri Lanka," at the Lionel Wendt Theatre in Colombo tomorrow (June 21) before embarking on a historic tour to Germany. • Cultural Export & Creative Industry: The production has been officially selected for Theater der Welt 2026 in Chemnitz, marking a major milestone for Sri Lanka's creative industries and performing arts sector on the global stage. • Tour Schedule: Following the Colombo staging, the ensemble will perform two shows in Chemnitz (June 26–27) before concluding the tour in Berlin at UfaFabrik on June 29. • Production Details: Directed by Ruwanthie de Chickera, the 90-minute trilingual performance (Sinhala, Tamil, and English) explores 70 years of Sri Lanka’s socio-political history from Independence to 2009. The script is uniquely built on oral histories and memories of senior citizens born in the 1930s. • Cast & Global Footprint: Features prominent actors like Sanjeewa Upendra and Nipuni Sharada. The play has previously toured India, Rwanda, and Abu Dhabi, showcasing the international scalability of Sri Lankan cultural productions.

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KDA Intake 1 Marks 45 Years of Military Academic Excellence 📈

• Historical Context: Established in 1979 to elevate the intellectual calibre of Sri Lanka's officer corps, the Kotelawala Defence Academy (KDA) formally opened on 11th October 1980 following a 48-acre land donation by former Prime Minister General Sir John Kotelawala. • Intake 1 Breakdown: The historic first batch entered on 3rd March 1981, comprising 34 young men. The cohort balanced military training with civilian higher education, diversifying into critical technical fields: 19 cadets pursued Engineering degrees at the University of Moratuwa. 13 cadets pursued Physical Sciences (BSc) at the University of Colombo. 2 cadets specialized in Architecture. • Key Milestones: The first passing out parade was held on 2nd May 1984. Demonstrating the long-term human capital impact of the institution, five pioneering officers rose to top ranks (Major General, Rear Admiral, and Air Vice Marshal), contributing heavily to national infrastructure, engineering, and intelligence sectors. • Institutional Evolution: In 1988, KDA was elevated to full university status via a legislative amendment, becoming the General Sir John Kotelawala Defence University (KDU), blending disciplined military leadership with academic excellence.

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Data Error: Information Extraction Failed 📉

• Status Update: The system failed to extract content from the requested Daily FT article due to an HTTPS read timeout. • Factual Note: No specific economic data or market figures are available for summary at this time based on the provided input.

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🚨 Probe Launched Into Police-Air Force Standoff During Kalpitiya Raid

• Incident Overview: Sri Lanka Police have launched an official investigation following a heated confrontation between police officers and Sri Lanka Air Force personnel during a maritime anti-smuggling operation along the Kalpitiya coastline. • The Conflict: The standoff occurred when police officers deployed to seize a suspected stock of illegally smuggled goods by sea were intercepted by Air Force personnel stationed in the area. The Air Force personnel intervened on the grounds that the coastal zone falls under their direct jurisdiction and operational authority. • Current Status: Police authorities are investigating the sequence of events and exact circumstances that led to the dispute between the two state security institutions. Based on provisional operational data, no injuries or arrests have been reported in connection with the incident.

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Product & Service Launches / Business Expansions

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🇻🇳 Vietjet Launches First-Ever Direct Flights Between Sri Lanka and Vietnam ✈️

Vietnamese airline Vietjet has officially opened bookings for a new direct route connecting Colombo and Ho Chi Minh City, marking the first scheduled direct air link between the two nations. • Flight Operations: The service will commence on 18 August 2026, operating three round-trip flights per week on Tuesdays, Thursdays, and Saturdays. The flight time is approximately five hours. • Economic & Tourism Impact: The route establishes a direct link between Sri Lanka’s commercial hub and Southeast Asia's leading gateway. It is expected to significantly boost two-way tourism, trade, and cultural ties, granting Vietnamese travellers direct access to Sri Lanka’s beaches, wildlife, and tea plantations. • Pricing & Promos: Special launch Eco fares start from USD 90 one-way (all-in). Passengers booking Deluxe and SkyBoss tickets receive a 20% discount on base fares. • Fleet Context: Vietjet operates a modern fleet of 135 aircraft, with nearly 600 additional aircraft on order to support its Asia-Pacific expansion strategy.

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📈 City of Dreams Sri Lanka: Melco Brings Global Luxury Hospitality to Colombo

Global integrated resort leader Melco Resorts & Entertainment has expanded its international footprint to Colombo with the launch of City of Dreams Sri Lanka, marking South Asia’s first integrated resort. • The Development: The landmark project brings Melco’s international expertise in world-class design and elevated dining to Sri Lanka's tourism & hospitality sector. It features the luxury Nüwa hotel, premium dining, retail, leisure, and world-class entertainment offerings. • Strategic Impact: Positioned as a bold new chapter for national tourism, the integrated resort aims to reshape the future of luxury travel in the region, mirroring Melco's existing footprint across Macau, Manila, and Cyprus. • Global Portfolio Context: The Sri Lankan property joins Melco’s flagship destinations, including City of Dreams Macau (home to the iconic Zaha Hadid-designed Morpheus), the Hollywood-inspired Studio City, the ultra-luxury Altira Macau, City of Dreams Manila, and Europe's largest integrated resort, City of Dreams Mediterranean in Cyprus. _Note: Based on initial operational and portfolio announcements._

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📲 Seylan Bank Launches Google Pay for Mastercard Holders

Seylan Bank, in collaboration with Google and Mastercard, has officially launched Google Pay for its Mastercard debit and credit cardholders, accelerating Sri Lanka’s shift toward a digital, mobile-first economy. • Digital Payment Expansion: Seylan Bank customers can now link their Mastercard cards to Google Wallet for secure, contactless "Tap & Go" payments using NFC-enabled Android smartphones. • Global & Local Utility: The service eliminates the need for physical cards, allowing users to make seamless transactions both locally and internationally at all Mastercard acceptance points. It covers retail, dining, commuting, and online purchases. • Security & Technology: The platform uses advanced tokenization technology, replacing actual card details with unique digital tokens. Transactions are securely authenticated via one-time passwords (OTPs) or bank verification to meet international security standards. • Strategic Impact: This partnership enhances convenience and drives digital adoption within the local banking & financial services sector, supporting broader national efforts toward cashless financial inclusion.

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📈 Marriott & CG Hospitality Sign Landmark 3-Property SAARC Deal

Marriott International has signed a major multi-unit agreement with Nepal's CG Hospitality Global to expand its luxury footprint across Nepal and India, aiming to boost regional tourism and employment. • The Overview: The deal adds nearly 450 keys to Marriott's South Asian portfolio. All three properties are anticipated to open by 2031. • Nepal Expansion: Marks the debut of The Ritz-Carlton in Kathmandu (150 rooms, including 30 suites, 5 restaurants, and a spa). It will be joined by The Westin Kathmandu (150 premium rooms focused on wellness), both located near Tribhuvan International Airport. • India Expansion: Introduces the JW Marriott Hotel Siliguri in West Bengal, featuring 150 rooms and 1,500 sq meters of banquet space, acting as a luxury gateway to Northeast India. • Strategic Impact: Deepens the partnership between Marriott and CG Hospitality, which recently celebrated 75 signings globally. The projects are expected to drive significant local economic development and hospitality job creation across the region.

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Uber Expands Rides and Eats to Ratnapura 🚗

• Market Expansion: Uber has launched both Uber Rides and Uber Eats in Ratnapura, Sri Lanka's gem capital, extending its technology platform to support local mobility and delivery needs. • Mobility Offerings: Uber Rides introduces two-, three-, and four-wheel transport options across the entire Ratnapura district, featuring safety integrations like GPS tracking, trip sharing, and 24/7 support. • Delivery Ecosystem: Uber Eats is now live across the district, onboarding local culinary merchants (such as Tandoori, Thai Tanic, and Garland) alongside grocery and retail partners to offer doorstep delivery. • Economic Context: The launch aims to drive local economic growth by offering flexible earning opportunities for regional drivers and delivery partners while digitizing small businesses and entrepreneurs in the area. • Growth Footprint: This marks Uber Eats' second regional launch of the year (following Nuwara Eliya) and follows Uber Rides' recent expansion into Kegalle, signaling a broader geographic diversification strategy across the island.

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📈 IFC Invests US$ 10 Mn in New Anthoney’s Farms to Boost Sri Lanka's Poultry Exports

The International Finance Corporation (IFC) is investing up to US$ 10 million (including up to US$ 5 million from GAFSP) in New Anthoney’s Farms Group (NAF) to scale up sustainable agribusiness, create jobs, and enhance rural livelihoods. • Overall Investment & Impact: • Up to US$ 10 Mn total investment to expand operations and retail/franchise networks. • Expected to create over 900 jobs. • Will benefit at least 200 smallholder farmers via contract farming (22% women, 80% low-income earners). Smallholders currently drive 40% of NAF's production. • Export & Foreign Exchange Growth: • Aims to export 1,936 metric tons of poultry annually at full capacity (approx. 10% of total output). • Represents a 29% increase from 2024 export levels. • Projected to generate up to US$ 4.95 Mn in additional foreign exchange earnings by 2032. • Notably, NAF accounted for over 90% of Sri Lanka’s poultry meat exports in 2024. • National Context & Food Security: • Supports Sri Lanka’s poultry and livestock sector as a critical, affordable protein source. • Integrates smallholders (who make up 85% of local farms but under 30% of total supply) into formal markets to boost productivity, rural incomes, and export diversification. • Strengthens NAF's position as Sri Lanka’s only fully antibiotic-free, all-natural poultry producer.

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🚀 N-able & SLT-MOBITEL Kick Off Landmark Digital Architecture Revamp

Sri Lanka's leading tech enabler N-able and national telecom giant SLT-MOBITEL have officially launched the modernization of SLT’s Service-Oriented Architecture (SOA) platform to accelerate the country's telecommunications and ICT/BPM capabilities. • The Initiative: A comprehensive revamp of Sri Lanka's first enterprise-scale SOA platform, which originally modernized SLT's core order management by bridging legacy systems with modern digital customer engagement platforms using IBM technologies. • Expected Outcomes: The upgrade will establish a future-ready digital foundation across the SLT-MOBITEL ecosystem. Key performance goals include enhanced operational agility, streamlined service orchestration, and intelligent, autonomous IT operations. • National Context: This decade-long partnership strengthens the foundation for scalable service integration in Sri Lanka's vital ICT sector, driving digital transformation and supporting enterprise-level employment and sector diversification.

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📈 JAT Holdings Marks Australian Re-Entry via Mirotone Acquisition Roadmap

Sri Lanka's JAT Holdings PLC has commenced Mirotone’s re-entry into the Australian market through its subsidiary, Mirotone Australia Pty Ltd, just seven months after acquiring Mirotone NZ Limited in October 2025. • Strategic Execution: The move converts JAT’s post-acquisition growth plan into commercial reality, reviving a 90-year-old industrial wood coatings brand in a key market where it was previously inactive. • Phased Rollout: The initial phase is demand-led and focused on Queensland, securing returning customers like vertically integrated cabinet makers. Future phases will expand into New South Wales and Victoria via a distributor-led model. • Synergy & Operation: The re-entry pairs Mirotone's regional brand equity with JAT’s R&D and backward integration capabilities, leveraging its acrylic binder facility in Sri Lanka and alkyd resin plant in Bangladesh. • Economic Impact: The expansion strengthens JAT's international revenue base, enhances geographic diversification, and boosts foreign currency generation, reducing reliance on any single domestic market.

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✈️ Emirates Unveils Summer Offers for Sri Lankan Travelers to Dubai

Emirates has launched exclusive summer incentives for passengers traveling to or transiting through Dubai, aimed at enhancing value for Sri Lankan tourists and business travelers. • Flight Connectivity: Emirates currently operates three daily flights from Colombo to Dubai, linking Sri Lanka to a global network of over 138 destinations. • Complimentary Luxury Stay: Passengers purchasing return tickets between June 22 and July 12 for travel from June 25 to September 30 (with a stopover exceeding 24 hours) qualify for free accommodation at the 5-star JW Marriott Marquis: • First and Business Class: Two-night complimentary stay. • Premium Economy and Economy Class: One-night complimentary stay. • Value-Added Benefits: The "My Emirates Pass" program returns for summer 2026, enabling passengers to unlock over 600 discounts across spas, restaurants, and retail outlets using their boarding pass. • Local Context & Flexibility: This seasonal push aligns with tourism and travel services, a vital sector supporting global mobility. Bookings made after April 2, 2026, include one complimentary date change across all cabin classes to support flexible itinerary planning.

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📱 Xiaomi Exclusive Store Opens at One Galle Face with Xiaomi 17T Launch

Xiaomi Sri Lanka, in partnership with Abans, has officially opened a new Xiaomi Exclusive Store at One Galle Face Mall, Lower Ground, while simultaneously launching its new smartphone, the Xiaomi 17T. • Retail Expansion: The new store is powered by Abans’ retail and customer service network, designed to provide consumers with hands-on experiences across Xiaomi’s ecosystem of smartphones, smart home products, and lifestyle technology. This moves supports the growing demand for smarter living solutions and expands retail infrastructure in the consumer electronics & ICT sector. • Product Launch: The event marked the local debut of the Xiaomi 17T, marketed as "The Telephoto Master." • Device Specifications: The premium device features a Leica triple camera system (50MP main, 50MP 5x periscope telephoto, and 12MP ultra-wide) with up to 120x AI Ultra Zoom. It is powered by the MediaTek Dimensity 8500-Ultra processor, sporting a 6.59-inch 1.5K 120Hz display, a 6500mAh silicon-carbon battery, and 67W HyperCharge support. • Strategic Outlook: Country Head Kain Wang and Abans CMO Dr. Chathura Jayawardena emphasized that the partnership aims to make innovative, connected technologies more accessible to Sri Lankan consumers, backed by Abans' extensive after-sales service.

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📈 Gestetner & MAXHUB Partner to Drive Smart Workspace Tech in Sri Lanka

• Strategic Alliance: Gestetner of Ceylon PLC (GOC) has been appointed as the Authorised Distribution Partner for MAXHUB, a global leader in collaborative display and intelligent workplace technology. • National Context & Market Demand: The partnership bridges a critical gap in the domestic market for premium, globally certified smart office tools backed by local technical support. It directly addresses the accelerating adoption of hybrid work models and digital-first operations among Sri Lankan enterprises, multinational corporations, SMEs, and educational institutions. • Product Rollout: Formally launched at 'MAXHUB Connect 2026', GOC will distribute products across 5 principal categories to serve virtually every sector of the economy: • Interactive Flat Panel Displays (touch-enabled screens) • Smart Conference Room Solutions • Wireless Collaboration Systems • Video Conferencing Solutions • Digital Signage Solutions • Synergy & Portfolio: GOC leverages its island-wide distribution network and technical service infrastructure to complement its existing tech portfolio, which includes international brands like RICOH, EPSON, BENQ, BARCO, DYNABOOK, BLUE, and MYQ.

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📱 Singer Opens Sri Lanka's First HONOR Experience Store at One Galle Face

• Retail Expansion: Singer Sri Lanka PLC, in exclusive partnership with global technology brand HONOR, has launched the country's first HONOR Experience Store on Level 03 of the One Galle Face (OGF) Mall. • Market Position: Since entering the Sri Lankan market in April 2023, HONOR has achieved rapid growth, becoming the country's number one smartphone brand within a three-year span. • Strategic Intent: The flagship retail space is designed as an interactive environment showcasing flagship smartphones, AI-powered innovations, smart accessories, and connected lifestyle devices. • National Significance: Powered by Singer's flagship retail concept, this long-term investment aims to enhance the local consumer electronics and retail ecosystem by introducing a global-standard experiential layout to Sri Lankan consumers.

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Appointments & Executive Moves

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

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

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📈 Treasury Appoints New Management Audit Director General

• Public Sector Leadership: Mr. M.R.A.G.B. Muthukude, a Senior Officer of the Special Grade of the Sri Lanka Accountants' Service, has been appointed as the new Director General of the Department of Management Audit of the General Treasury. • Extensive Expertise: With nearly 30 years in public financial management, he has served in high-profile roles including Additional Director General of the Department of Public Finance and Chief Financial Officer of Sri Lanka Customs. • Qualifications & Training: A graduate of Rajarata University with a postgraduate degree from SLIDA, he has undergone specialized international training in public policy, project management, and financial systems across the UK, Thailand, Malaysia, and China.

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👔 C.W. Mackie PLC Appoints Mangala Perera as Group CEO

Diversified conglomerate C.W. Mackie PLC has announced the appointment of Mangala Perera as its new Group Chief Executive Officer (Group CEO), leveraging his extensive leadership experience across key local sectors. • Executive Transition: Perera, who has served as a Director since April 2012 and is the current Executive Director - Group Chief Operating Officer, steps into the Group CEO role with over 26 years of cross-industry marketing and general management experience. • Subsidiary Leadership: He maintains strategic oversight across key manufacturing and export-related sectors, serving as Managing Director of Sunquick Lanka Ltd. and holding directorships at Kelani Valley Canneries Ltd., Ceymac Rubber Company Ltd., and Ceytra Ltd. (both effective April 2026). • Academic & Professional Profile: Holds a Master’s in Financial Economics (University of Colombo) and a BSc in Marketing Management (University of Sri Jayawardenepura). He is a visiting postgraduate lecturer and serves as a Non-Executive Director at Phoenix Industries Ltd.

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Obituary: FCCISL Mourns the Passing of Immediate Past President Keerthi Gunawardane

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) has announced the passing of its Immediate Past President, Keerthi Gunawardane, a prominent corporate leader and champion of the grassroots economy. His funeral will take place this Sunday. • Career & Entrepreneurship: Began as a Management Trainee at Sri Lanka State Trading (General) Company before founding Graphic Systems Ltd in 1991. He grew the firm into Sri Lanka’s leading NCR Business forms provider, winning the National Bronze Award at the "Sri Lanka Entrepreneur of the Year" (1999) and a Lifetime Achievement Award from the Sri Lanka Association of Printers (2018). • Chamber Leadership: Assumed the presidency of the FCCISL in October 2022, steering the chamber through a highly challenging domestic economic period. • Trade & Regional Integration: Served as the SAARC contact point for Sri Lanka to boost regional trade and investment. He successfully secured Colombo as the host city for the 39th Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) Conference and partnered with the EDB to open export channels in Japan. • Grassroots & Skill Development: Strongly advocated for local startup ecosystems and pioneered a workplace-based learning program in the hospitality sector alongside NAITA and the ILO. This initiative upskilled returnee and aspiring migrant workers in Anuradhapura, Batticaloa, and Jaffna to boost employment.

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Dr. Hans Wijayasuriya Appointed to Lead SriLankan Airlines Restructuring ✈️

• Executive Appointment: The Cabinet of Ministers has approved the appointment of prominent corporate leader Dr. Hans Wijayasuriya as the Chairman of the Strategy and Restructuring Committee for SriLankan Airlines. • The Mandate: The newly formed committee is tasked with guiding the national carrier’s strategic direction and restructuring efforts. • Strategic Focus: The appointment is part of ongoing government initiatives to optimize the operational and financial performance of SriLankan Airlines. The ultimate objective is to strengthen the airline’s long-term sustainability and market competitiveness. • Leadership Background: Dr. Wijayasuriya brings extensive corporate experience to the aviation sector, notably from his background in telecommunications and digital transformation.

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🌍 Historic First: Sri Lankan Leader Nazri Nizar Elected to YPO Global Board

In a major milestone for Sri Lankan business leadership, Nazri Nizar has become the first Sri Lankan elected to the Global Board of the Young Presidents’ Organisation (YPO) in its 76-year history. • The Appointment: Confirmed at the YPO AGM on May 21, Nizar will serve a three-year term as a YPO Director (2026–2029). He will concurrently take on the role of Chair of the YPO Global Forum Committee. • The Organization: Founded in 1950, YPO connects over 38,000 chief executives and entrepreneurs across 150 countries. Its members collectively lead organizations generating an estimated US$ 9 Tn in annual revenue, making it one of the world's most influential leadership networks. • National Impact: Nizar currently serves as the Group Managing Director of Richardson Holdings, a diversified Sri Lankan enterprise operating in engineering, infrastructure, renewable energy, manufacturing, and out-of-home advertising. • Leadership Journey: His election follows extensive local and regional service, including past roles as Chapter Chair of the YPO Colombo Integrated Chapter and a member of the YPO South Asia Regional Board. Nizar noted he hopes this milestone encourages more Sri Lankan leaders to engage with global platforms and international conversations.

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📈 Mastercard Unveils South Asia Leadership Restructure to Boost Digital Payments & Tourism

Mastercard has announced an integrated leadership model across five South Asia markets—Sri Lanka, Maldives, Bangladesh, Nepal, and Bhutan—to leverage growing synergies in tourism, cross-border trade, and payment innovations. • New Regional Structure: Mastercard has unified operations across these five nations to scale digital transformation and unlock shared growth opportunities. • Key Appointments: • Sandun Hapugoda has been promoted to Group Country Manager overseeing Sri Lanka, Maldives, Bangladesh, Nepal, and Bhutan. He brings extensive expertise in fintech, blockchain, and national policy committees in Sri Lanka. • Mahesha Amarasuriya has been elevated to Country Manager for Sri Lanka, bringing over 23 years of experience in corporate and retail banking to drive financial inclusion and digital payment expansion. • Strategic Impact: The restructure aims to strengthen ecosystem partnerships, accelerate digitalization, and capitalize on highly interconnected growth sectors like tourism and trade across the South Asian region.

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✈️ Dimal Arandara Formally Appointed as Chairman of SriLankan Airlines

• Leadership Transition: SriLankan Airlines has officially confirmed the immediate appointment of Dimal Arandara as the permanent Chairman of its Board of Directors. • The Background: Arandara previously stepped in as the national carrier's Acting Chairman following the resignation of the former Chairman, Sarath Ganegoda. • Official Concurrence: Internal communications from the airline state that this permanent leadership appointment was made with the formal concurrence of the President of Sri Lanka.

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Senior business leader Ramya Wickramasingha passes away 🕊️

• Ceylon Biscuits Ltd. (CBL) Group Chairman Ramya Sanath Amaraweera Wickramasingha passed away on Saturday. • Wickramasingha was a highly respected leader in the food industry, having qualified in food technology at Borough Polytechnic (London South Bank University, UK). • Under his leadership, he drove CBL Group's core focus on product innovation, quality control, research and development (R&D), manufacturing, and procurement, helping position Sri Lanka on the global food manufacturing map. • For millions of stakeholders and CBL employees, he was regarded as both an inspirational leader and a key father figure who deeply impacted national employment and industrial growth. • The cremation will take place today, June 8, 2026, at 5:30 p.m. at the Dehiwala/Mount Lavinia Cemetery.

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📊 Amana Takaful Life Appoints Two Independent Directors to Board

Amana Takaful Life PLC has appointed Pradeep Dilshan Rajeeva Hettiaratchi and Dev Nissanka Wijewardane as Independent Non-Executive Directors to strengthen its strategic and technological oversight. • Financial Expertise: Dilshan Hettiaratchi brings over 30 years of global finance and investment banking experience. He is currently the Managing Director of Dubai-headquartered Faber Capital Ltd. and Chairman of Sampath Securities Ltd. He has previously held board positions at Sampath Bank PLC, Amana Bank PLC, and Windforce PLC, and was heavily involved in establishing Sri Lanka’s first utility-scale solar PV project. • Technology & Digital Governance: Dev Wijewardane joins with over 20 years of experience in information technology and digital transformation. He serves as Senior Director and Field CTO at WSO2, advising financial and telecom institutions on large-scale digital platforms. He is also the founder of a technology startup focused on the logistics industry. • Strategic Impact: These appointments bring specialized expertise in capital markets and enterprise risk management, supporting the company's focus on digital innovation and modernization within Sri Lanka's regulated insurance sector.

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✈️ Emirates Promotes First Two Emirati Female Pilots to Captains

Emirates airline has officially promoted two Emirati female pilots, Hanan Mohammed Jawad and Bakhita Al Mheiri, to the rank of captain, marking a historic milestone for women in regional aviation. • Key Highlights: Both pilots achieved their fourth stripe this year, becoming the first Emirati female captains at Emirates. Both will be operating the airline's Boeing 777 fleet. • Career Trajectory: • Hanan Mohammed Jawad joined Emirates in 2008 through the cadet program, steadily progressing through fleet management support. • Bakhita Al Mheiri entered the airline as a cadet pilot in 2011, inspired by previous female aviators. • Program Success: Both captains are graduates of the Emirates Group’s National Cadet Pilot Program, an initiative dedicated to training and empowering UAE nationals. _Note: While this development highlights global aviation talent and gender diversity milestones, it carries no direct statistical impact on Sri Lanka's domestic macroeconomic indicators._

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📈 DFCC Bank Appoints Deputy CEO Shamindra Marcelline to Board as Executive Director

• Board Appointment: DFCC Bank has officially appointed its current Deputy Chief Executive Officer (CEO), Shamindra Marcelline, to the Board as an Executive Director, enhancing leadership within Sri Lanka's banking & financial services sector. • Current Leadership Role: As Deputy CEO, Marcelline oversees critical enterprise operations at DFCC, including Customer Excellence, Sustainability, Information Security Risk, and operational infrastructure (Logistics and Real Estate). • Proven Track Record: • Brings over 27 years of extensive experience across global, corporate, investment, and retail banking. • Previously served as Senior Vice President and Head of Corporate Banking at DFCC Bank PLC. • Served as CEO/General Manager of People’s Leasing and Finance PLC (Nov 2020 – Mar 2024), driving a major organizational transformation and overseeing multiple diversified financial subsidiaries. • International Exposure: Held key senior roles within the HSBC Group, including Country Manager for HSBC Maldives and Head of Financial Institutions Group and Public Sector for HSBC Sri Lanka and Maldives. • Qualifications: Holds a BSc (Hons) in Economics and Accountancy from City University, London, and a Financial Advisors’ International Qualification (FAIQ) from the Chartered Insurance Institute, UK.

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Awards & Recognitions

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Sri Lankan Brand Spa Ceylon Wins Prestige Global Haircare Award 📈

• Global Recognition: Sri Lankan luxury Ayurveda brand Spa Ceylon won "Best Conditioner for Damaged Hair" at the prestigious Marie Claire UK Hair Awards 2026. • Winning Product: The award was secured by its Virgin Coconut Nourishing Hair Conditioner, which competes alongside major established global beauty and professional haircare names. • Economic Context: This milestone spotlights the global potential of Sri Lanka's wellness and beauty sector, showcasing value-addition to local natural resources like coconut oil by combining heritage with advanced cosmetic science. • Judging Panel: Winners were selected through extensive testing by leading UK hairstylists, trichologists, beauty editors, and industry experts. • Company Footprint: Founded in 2009, Spa Ceylon has expanded internationally to become the world's largest luxury Ayurveda wellness brand.

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🌿 Hilton Yala Rangers Earn Global Tracking Certifications

Hilton Yala Resort's Rangers' Team has achieved a major milestone in Sri Lanka's tourism & hospitality sector by securing prestigious CyberTracker Track & Sign certifications. The internationally recognized qualifications establish a global benchmark for wildlife tracking, directly enhancing the country's eco-tourism standards. • Key Highlights: • Multiple team members awarded Track & Sign I, II, and III Secondary Certificates under the CyberTracker Conservation system, founded by Louis Liebenberg. • Assessments conducted by global tracking experts Mr. Lee Gutteridge (FGASA Scout Guide & Master Tracker) and Dr. Kersey Lawrence (the world's first female Senior Tracker). • The team is led by Sajith Withanage, Head Ranger, who is Sri Lanka's first FGASA-certified field guide and a CyberTracker Track & Sign Professional. • National & Economic Context: As Hilton’s only dedicated wildlife property globally, the resort’s investment in professional development positions Sri Lanka as a top-tier destination for high-value, conservation-focused nature-based hospitality. Elevating local guiding skills aids economic diversification within tourism, creating high-skilled employment and enhancing guest experiences rooted in ecological education.

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📈 People’s Insurance Reaffirms Leadership with Global Award & Strong Q1 2026 Growth

People’s Insurance PLC has been named _Best General Insurance Company of the Year 2026 – Sri Lanka_ at The Global Economics Awards for the third consecutive year, alongside reporting strong financial growth for Q1 2026. Key Financial Highlights (Q1 2026): • Gross Written Premium (GWP) grew by 34% YoY to Rs. 2,856.54 m, outperforming the overall insurance industry growth of 27%. • Profit Before Tax reached Rs. 230.52 m, while Profit After Tax rose to Rs. 156.40 m, marking an 18% YoY increase in overall profitability. • Claims settlement for the quarter totaled nearly Rs. 1 Bn. Sector Performance & Diversification: • Motor portfolio remained the largest contributor to GWP, expanding by 38% YoY. • Non-Motor portfolio grew by 25% YoY, substantially beating the industry’s segment growth of 13% and reflecting successful business diversification. • Financial position remained stable with liquidity and capital adequacy levels comfortably above regulatory thresholds.

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🎓 CFA Society Sri Lanka Honors 27 New Charterholders

CFA Society Sri Lanka will host its Charter Awards Ceremony and Oration 2026 this evening at the Hilton Colombo Residences, celebrating a new milestone for local financial talent. • Professional Excellence: The ceremony will officially recognize 27 new CFA charterholders and successful candidates who have completed the rigorous CFA Program. • Industry Leadership: The event highlights the organization's ongoing dedication to driving integrity, top-tier leadership, and excellence within Sri Lanka's finance industry and capital markets. • Keynote Highlights: Former CFA Society Sri Lanka President Rachini Rajapaksa, CFA—a veteran with 30+ years of experience in fund management and corporate governance—will deliver the evening's oration. • Global Stature: The CFA charter remains the global gold standard for the investment and wealth management sectors, connecting Sri Lanka's new professionals to a worldwide network of over 200,000 charterholders across 160 markets.

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📈 Sri Lanka Enters Top 50 Global Medical Tourism Destinations for 2026

Sri Lanka has secured the 49th position in the newly released "Top 50 Medical Tourism Destinations in the World for 2026" ranking by Travel And Tour World (TTW). The accolade highlights the island nation's emerging role in combining affordable, high-quality clinical care with its rich traditional wellness therapies. • Key Highlights & Offerings: Sri Lanka is recognized for "integrated healthcare journeys," blending advanced modern clinical procedures like cardiology, oncology, and fertility treatment with its world-renowned Ayurveda traditions. The nation's primary medical tourism strengths span across orthopedics, ophthalmology, dental care, cosmetic surgery, preventive healthcare, and rehabilitation medicine. • Infrastructure & Strategic Hubs: The country offers advanced private hospitals, specialist clinics, modern diagnostic technologies, dedicated international patient departments, and multilingual support services. Colombo serves as the primary medical hub, providing high-end clinical specialties and diagnostics. Regions such as Kandy, Galle, Bentota, Negombo, Mount Lavinia, Nuwara Eliya, Dambulla, Jaffna, and Trincomalee serve as crucial destinations by offering specialized care, recovery-focused environments, and luxury wellness retreats. • Global & Regional Context: In the Asia-Pacific region, Sri Lanka shares the ranking alongside established giants including Thailand (ranked 1st), India (3rd), South Korea (5th), Malaysia (6th), and Singapore (8th). The global index prioritizes destinations delivering clinical excellence, transparent care pathways, and seamless recovery ecosystems to generate significant economic opportunities for local hospitality, aviation, and healthcare sectors.

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CSSL Honors Top Tech Leaders at National CIO Forum 2026 📈

The Computer Society of Sri Lanka (CSSL) successfully hosted the National CIO Forum 2026 and the CIO List 2025 recognition ceremony in Colombo, highlighting the pivotal role of digital leadership in the national economy. • Event Focus: Centered on the theme “Connect. Protect. Intelligence.”, the forum explored transitioning ICT/BPM leaders from operational managers to strategic business value architects. • Key Themes: Discussions emphasized integrating AI and digital innovation to drive enterprise performance, alongside the critical need for robust AI governance, data privacy, and regulatory compliance. • Strategic Impact: More than 150 senior executives from leading banking, telecommunications, and healthcare sectors participated, reinforcing that digital transformation is essential for national competitiveness and economic resilience. • Recognition: The CIO List 2025 honored top technology leaders for their measurable impact on digital evolution throughout 2025, using independent evaluations of leadership and innovation rather than tenure alone. • Leadership Insights: A special session featuring Mahela Jayawardena drew parallels between high-performance sports and corporate leadership, stressing the importance of discipline, trust, and calm execution under pressure. The event underscored the need for stronger collaboration between the private sector and policymakers to accelerate Sri Lanka's digital transformation agenda.

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🏆 LOLC Divi Saviya wins international CSR award for social impact

The Sri Lankan conglomerate LOLC Holdings PLC secured global recognition at the International CSR Excellence Awards 2026 for its "Divi Saviya" humanitarian initiative. The award for Community Commitment was presented on June 1 at St. Paul’s Cathedral, UK, by The Green Organisation. • Overall Impact: Launched in 2022 during the island's economic crisis, the initiative has systematically rolled out targeted relief operations across multiple national crises and natural disasters. • Sector & Project Breakdown: Phase 1 (‘Jeewithaya Dinannata’): Distributed dry ration packs to 150,000 families across all 25 districts. Phase 2 (‘Daye Daruwange Anagathaya Wenuwen’): Provided school supplies and stationery to students in 4,090 schools, securing educational access for 40% of Sri Lanka’s total student population. Phase 3 (‘Obai Mamai Ape Ratai’ - Ongoing): Response to Cyclone Ditwah in 2025, providing recovery relief and infrastructure rehabilitation across 200 schools in 6 districts. • Strategic Focus: The project highlights corporate-led social safety nets addressing critical areas like education and community resilience during macro-economic recovery.

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🏆 Hilton Yala Resort Wins Tripadvisor Travelers’ Choice Award 2026

Sri Lanka's luxury tourism & hospitality sector marks a significant achievement as Hilton Yala Resort secures a spot in the top 10% of global listings on Tripadvisor. • Global Recognition: The resort won the prestigious award for the third consecutive year, driven entirely by authentic, first-hand guest reviews over a 12-month period. • National and Regional Rankings: Ranked #8 Best Value out of 3,232 properties across Sri Lanka. It stands as the highest-ranked hotel in Yala, making it the only property in the region to break into the country's Top 10 Best Value list. • Economic Impact: As Hilton's only wildlife resort globally, the property enhances Sri Lanka's high-value eco-tourism appeal. Its operations leverage internationally trained rangers and award-winning culinary teams, highlighting the local workforce's contribution to high-end service exports.

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📱 Dialog Axiata aligns risk governance with global ISO 31000 standard

• Telecommunications & Digital Services leader Dialog Axiata PLC has strengthened its Enterprise Risk Management (ERM) through independent validation against ISO 31000:2018 principles by Quality Austria Central Asia Ltd. • First in Sri Lanka: Dialog is the first telecommunications operator in the country to achieve independent validation against these specific risk management guidelines. • Strategic Scope: The framework embeds systematic risk governance directly into strategy, planning, and operations, enabling early identification of emerging challenges across cybersecurity, data privacy, and regulatory compliance. • National Impact: This milestone reinforces the resilience of Sri Lanka’s digital infrastructure while supporting secure innovation scaling in 5G, cloud computing, fintech, and artificial intelligence.

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🎓 SLITA Awards Diplomas to 596 Graduates, Boosting Apparel Workforce

• Overall: The Sri Lanka Institute of Textile & Apparel (SLITA) held its fifth Diploma Award Ceremony, graduating 596 students to support the growth and future workforce of the national apparel & textiles sector. • Sector Breakdowns: Qualifications were awarded across key specialized fields, including textile and apparel technology, merchandising management, fashion design, industrial engineering, and apparel product development. • Impact: The graduation equips the workforce with essential technical and managerial skills, directly strengthening Sri Lanka's critical textile & apparel industry.

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Shehara De Silva Headlines Sri Lanka’s Presence at EY Winning Women 2026 👩‍💼

• Overview: EY hosted the 2026 EY Entrepreneurial Winning Women Asia-Pacific conference in Seoul, South Korea (18-20 May), drawing over 100 regional participants, including 23 newly selected women entrepreneurs for the Class of 2026. • Sri Lankan representation: Shehara De Silva, Managing Director of the McLarens Group, proudly represented Sri Lanka in the 2026 cohort. She leads a diversified conglomerate of over 45 companies spanning shipping, logistics, manufacturing, and hospitality. She is also the founding President of WISTA Sri Lanka and the first female Chairperson of CASA. • Delegation and Alumni: The event was also attended by EY Sri Lanka partners Anoji de Silva and Gayanthri Manatunga, alongside prominent Sri Lankan alumni Lakmini Wijesundera (Co-founder/CEO of BoardPAC and IronOne Technologies, driving ICT/BPM innovation) and Jayomi Lokuliyana (Co-founder/CEO of zMessenger). • Strategic Focus: The three-day conference centered on cross-border collaboration, global scale-up financing, and navigating macroeconomic shifts. Key focus areas included AI transformation (AX) led by EY Korea AI Lead Dr. Sooyeon Kim, and international expansion strategies featuring South Korea’s K-beauty success stories. • Global Footprint: The Asia-Pacific initiative is part of a global EY network established in 2008 that now connects more than 1,200 women entrepreneurs across over 60 markets globally.

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🇫🇷🤝🇱🇰 Sri Lanka Felicitation Ceremony in Paris Honours Orange Marine CEO

• Event Overview: The Embassy of Sri Lanka in Paris hosted a felicitation ceremony on June 5, 2026, honoring Orange Marine CEO Didier Dillard for his role in strengthening maritime cooperation and industrial ties between Sri Lanka and France. • Key Partnerships: The event celebrated the successful collaboration between France's Orange Marine and Colombo Dockyard PLC, highlighting the 2023 delivery of the cable-laying vessel _Sophie Germain_. The partnership extends Sri Lanka's footprint in global shipbuilding & marine engineering. • Future Outlook & Pipeline: Orange Marine reaffirmed its confidence in the Sri Lankan workforce by confirming the construction of two additional sister vessels, which are officially scheduled for delivery in 2028 and 2029. • Trade & Investment Promotion: The Export Development Board (EDB) emphasized promoting Sri Lanka as a competitive maritime destination, formally inviting Orange Marine to the upcoming Sri Lanka Expo 2027, scheduled for January 14–17, 2027, in Colombo.

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Market News

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📈 Asian Markets Surge on Micron Earnings; Oil Erases War Premium

• Market Sentiment: Asian equities rallied sharply as strong earnings and forecasts from Micron and Qualcomm eased recent valuation concerns over the global AI sector. • Regional Indices: Japan's Nikkei surged over 4%, South Korea's KOSPI gained 5.5% (bringing YTD gains to 112%), and Taiwan stocks rose 0.9%. MSCI's Asia-Pacific index outside Japan increased by 1.6%. US futures also rose, led by Nasdaq futures up 1.8%. • Corporate Highlights: Micron reported $22 Bn in memory chip commitments from customers, while Qualcomm expects $15 Bn in data center sales by 2029. South Korea's SK Hynix plans to raise up to $29.52 Bn via a secondary Nasdaq listing. • Energy & Commodities: Brent crude fell 1.6% to $72.53/barrel, erasing all war-related gains as tankers exited the Strait of Hormuz following an initial accord ending the US-Israeli war with Iran. Spot gold dropped below $4,000/ounce for the first time in 2026, fetching $3,990 due to a stronger US dollar. • Forex & Inflation: The US dollar index hit 101.6 ahead of May PCE inflation data (expected at 4.1% YoY headline). Rising US rate hike expectations pushed the Japanese yen to 161.73 per dollar, nearing its lowest level since 1986 and raising prospects of Tokyo's intervention. _Note: Summarized based on provisional global market data as of June 25, 2026._

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📈 Global Oil Prices Tumble Towards Pre-War Levels as Strait of Hormuz Reopens

Oil prices extended their sharp decline on Thursday, hitting their lowest levels since late February. The rapid drop comes as Middle Eastern supply returns much faster than anticipated following an initial accord to end the U.S.-Israeli war with Iran. • Market Impact & Prices: Brent crude futures for August fell by 1.65% to US$ 72.52 a barrel, while U.S. West Texas Intermediate (WTI) dropped 1.45% to US$ 69.32 a barrel. August Brent is trading lower than September, signaling ample short-term supply. • Supply Restoration: The Strait of Hormuz is rapidly normalizing, with at least 20 million barrels exiting the strait in a 24-hour window. Demining operations are underway to reach full normalcy within weeks. • Sanctions & Logistics: Iran is set to boost sales following a temporary reprieve from U.S. sanctions. Additionally, Oman has opened temporary routes to ease oil tanker departures. • Future Forecast: Analysts expect prices to normalize quickly. Brent is forecast to average US$ 67 per barrel and WTI at US$ 62 per barrel in Q3, a steep drop from Q2 averages of US$ 94 and US$ 87 respectively. _Context for Sri Lanka_: As a net oil-importing nation, a sustained drop in global crude prices toward the US$ 60–70 range will significantly ease pressure on Sri Lanka's foreign exchange reserves, reduce the national import bill, and help stabilize domestic energy and manufacturing costs.

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📈 T-Bill Rates Edge Up Across the Board; All Bills Sold

• Auction Overview: At the weekly Treasury Bill auction, yields increased across all maturities, reversing part of the decline from the previous auction. The full Rs. 70 Bn offered was successfully raised during the competitive bidding phase, with total bids reaching 1.86 times the offered volume. • Yield Breakdown: • 91-day Bill: Witnessed the sharpest increase, up 12 basis points to 10.14%. • 182-day Bill: Edged up by 5 basis points to 10.21%. • 364-day Bill: Marginally increased by 1 basis point to 10.17%. • Secondary Bond & Money Market: Bond rates initially dropped on strong buying interest before closing marginally higher due to profit-taking. Healthy transaction volumes were recorded. Net money market liquidity surplus stood at Rs. 61.04 Bn. • Forex Market: The USD/LKR spot contract closed at LKR 337.00/337.75, a depreciation for the Rupee against the US Dollar compared to the previous day's close of LKR 335.00/335.50. The total traded volume stood at US$ 33.80 Mn (as of June 23).

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📊 CSE Edges Down 0.22% Amid Weak Investor Sentiment and Selling Pressure

The Colombo stock market ended in the red yesterday due to cautious investor sentiment and selling pressure on select blue-chip stocks. • Overall Market Figures: The All Share Price Index (ASPI) fell 0.22% (down 47.91 points) to close at 22,208.58, with 140 counters closing in red against 76 in green. The active S&P SL20 also dropped 0.19% (down 12 points) to 6,181.65. • Turnover & Trading: Market turnover remained subdued at nearly Rs. 1.2 Bn, with over 48.4 million shares traded. Both high-net-worth and retail participation stayed at low levels. • Foreign Activity: Foreign investors were net sellers, resulting in a net outflow of Rs. 130.6 million. • Sector Breakdowns: The capital goods sector led daily turnover with a 16% share (Aitken Spence gained Rs. 1.50 to Rs. 158.25), followed closely by telecommunications and materials, which collectively contributed 32%. • Top Influencers: The main negative drivers for the ASPI were SAMP, JKH, LOLC, GRAN, and RICH. Dialog Axiata declined 0.53% to Rs. 45.60, while Bogala Graphite Lanka bucked the trend, gaining Rs. 17.50 to close at Rs. 155.

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📈 Global Tech Selloff Sparks Asian Market Volatility

Asian markets wobbled on Wednesday following a major overnight tech and semiconductor selloff on Wall Street, with analysts warning of increased market instability. • Market Performance: • MSCI Asia-Pacific (ex-Japan) dipped 0.02%. • Japan’s Nikkei swung wildly, dropping 0.8%. • South Korean shares rebounded 2.2% after a massive 10% plunge on Tuesday. • US Markets: Nasdaq tumbled 2.2%, S&P 500 fell 1.4%, and Dow dropped 0.09% amid AI spending worries and hawkish Fed speculation. • Currency & Commodities: • The US Dollar Index held near a one-year high at 101.43, keeping the Japanese Yen near 40-year lows (161.57 per dollar). Bank of Japan minutes revealed calls for more rate hikes after pushing interest rates to a 31-year high of 1.00%. • Oil prices hovered near 4-month lows as stranded tankers prepared to move post-Iran war peace deal, though terms remain uncertain. • Spot Gold dropped 0.48% to US$ 4,088.71 per ounce due to higher interest rate expectations. _Note: This international volatility and stronger US dollar could put pressure on emerging market currencies, potentially impacting import costs for commodity-reliant nations._

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📈 CSE Edges Up Marginally Amid Subdued Investor Sentiment

The Colombo Stock Exchange closed slightly higher yesterday on mixed sentiment, with low participation from high-net-worth and retail investors. • Market Indices & Turnover: The ASPI ended up 0.01% (+2.97 points) at 22,256.49, while the S&P SL20 dipped 0.03% (-2.06 points) to 6,193.65. Total turnover crossed Rs. 1.56 Bn with over 65.1 Mn shares traded. Foreign investors recorded a net outflow of Rs. 225 Mn. • Sector Performance: • Capital Goods: Led daily turnover with a 27% share, driven by Hemas Holdings (top turnover contributor at Rs. 214 Mn, closing up at Rs. 32.50) and John Keells Holdings (closed flat at Rs. 20.20). The sector index gained 0.22%. • Banking & Diversified Financials: Collectively contributed 29% to turnover. The banking index rose 0.13%, supported by National Development Bank (turnover of Rs. 169 Mn, gaining Rs. 1.50 to close at Rs. 111.50). • Other Sectors: Buying interest was noted in defensive sectors like power & energy (Hayleys Fibre rose Rs. 9.75 to Rs. 160; Panasian Power fell 40 cents to Rs. 16) and property. • Investor Participation: Institutional and high-net-worth activity was concentrated in Hemas Holdings, NDB, and Pan Asia Banking Corporation, though overall high-net-worth and retail participation remained subdued. Top positive contributors to the ASPI included CTHR, LFIN, NDB, DIAL, and NHL.

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📈 Bond Yields Mixed; Focus Shifts to Rs. 70 Bn T-Bill Auction

• Market Sentiment: The secondary bond market experienced mixed trends, with short-term yields edging marginally lower and medium-term yields ticking slightly upward. Activity was influenced by falling global Brent crude prices following a US 60-day license for Iranian oil and reports of unfreezing $ 12 billion in Iranian assets. Overall trading volume remained moderate. • Bond Yield Movements: • 01.05.28 & 15.10.28: Traded at 10.64%-10.60% and 10.655%-10.635% respectively. • 15.12.29: Traded at 10.90%. • 01.08.30: Downward movement to 11.20%-11.17%. • 01.11.33: Traded at 11.65%. • 15.06.34 & 15.06.35: Traded at 11.70% and 11.95%. • Treasury Bill Auction: A total of Rs. 70.00 Bn is on offer today (91-day: Rs. 35 Bn, 182-day: Rs. 25 Bn, 364-day: Rs. 10 Bn). At the previous week's auction, yields dropped for the first time in five weeks (91-day down 7 bps to 10.02%; 182-day down 11 bps to 10.16%; 364-day flat at 10.16%), correcting the T-Bill yield curve inversion. • Liquidity & Money Market: Interbank call money and repo rates averaged 9.21% and 9.24%. The net market liquidity surplus stood at Rs. 64.26 Bn, with Rs. 101.11 Bn deposited at the Central Bank's SDFR (8.25%) and Rs. 36.85 Bn utilized via the SLFR (9.25%). • Forex Market: The Sri Lankan Rupee dipped marginally against the US Dollar, closing at Rs. 335.00/335.50 on spot contracts compared to the previous close of Rs. 334.45/334.75. The total traded USD/LKR volume was US$ 57.25 Mn.

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🛢️ Global Oil Prices Drop Over 1% Amid Strait of Hormuz Progress

Global oil prices fell by over 1% on Tuesday, extending Monday's 3% decline, driven by signs of diplomatic progress and reviving crude flows through the strategic Strait of Hormuz following U.S.-Iran peace talks. • Price Adjustments: Brent crude futures dropped 1.4% (down $1.09) to $76.81 a barrel, while U.S. West Texas Intermediate (WTI) fell 1.2% (down 87 cents) to $72.99 a barrel. • Supply & Shipping: Tanker traffic is picking up. Two crude tankers carrying nearly 2 million barrels sailed through the Strait of Hormuz on Monday after the U.S. granted Iran a 60-day sanctions waiver. • U.S. Inventories: Government data revealed that U.S. Strategic Petroleum Reserve (SPR) stocks fell to 331.2 million barrels last week—the lowest level since June 1983—following recent U.S.-Iran conflict disruptions. • Economic Context for Sri Lanka: While this specific text does not detail domestic impacts, a sustained drop in global oil benchmarks is typically a vital driver for lowering Sri Lanka's national import bill, easing foreign exchange pressure, and stabilizing local fuel pricing and production costs. _Note: Based on provisional market and ship-tracking data._

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Secondary Bond Market Yields Steady as Rupee Dips Marginally 📉

• Bond Market: The secondary bond market started the week with yields holding broadly steady amid subdued activity and limited transaction volumes across the yield curve. Key trades included the 15.06.29 maturity at 10.92%, 2030 maturities (01.03.30 and 01.08.30) at 11.05% and 11.20%, and 2035 maturities trading between 11.85% and 11.90%. • Money Market: Net liquidity surplus was recorded at Rs. 44.16 Bn. Market participants deposited Rs. 88.56 Bn at the Central Bank’s SDFR (8.25%) and withdrew Rs. 44.40 Bn from the SLFR (9.25%). Weighted average rates for overnight call money and Repo stood at 9.21% and 9.24% respectively. • Forex Market: The Sri Lankan Rupee dipped marginally against the US Dollar. Spot contracts closed at Rs. 334.45/334.75, compared to the previous day's close of Rs. 333.85/334.25. The total traded volume for USD/LKR stood at US$ 23.25 Mn (as of 19 June 2026).

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CSE Opens Week in Red Amid Mideast Concerns 📈

The Colombo Stock Market saw a subdued start to the week as investor caution grew over the stability of Middle East peace developments. • Market Performance: The ASPI declined 0.48% (107.79 points) to close at 22,253.52, while the S&P SL20 fell 0.32% to 6,195.71. • Trading Activity: Market turnover reached nearly Rs. 1.2 Bn with 44 million shares traded. 51 counters gained against 164 decliners. • Investor Sentiment: Foreign investors were net sellers with an outflow of Rs. 154.6 Mn. Participation from both HNW and retail investors remained low. • Sector Breakdown: The capital goods sector dominated trading with a 30% share of turnover, followed by the banking and insurance sectors, which combined for 29%. • Top Drags: Negative pressure on the ASPI was largely driven by JKH, SPEN, DFCC, COMB, and ACL. Analysts note that concerns regarding potential disruptions to global trade routes continue to weigh on local risk appetite.

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📈 Asian Markets Rise on Iran Peace Progress

• Market Performance: Asian equities trended higher as US-Iran peace talks showed progress. Japan’s Nikkei rose 1.8%, South Korea’s market added 0.6%, and MSCI’s Asia-Pacific index gained 0.8%. • Commodities: _Brent crude_ futures eased 1.9% to US$ 79.01/bbl, down significantly from May’s US$ 126.41 peak. Gold rose 0.4% to US$ 4,178/oz. • Energy Logistics: The Strait of Hormuz remains a focal point; shipping activity saw fluctuations with 55 vessels recorded on Saturday compared to 32 the previous day. • Global Policy: Financial markets are pricing in a 75% chance of a US Federal Reserve rate hike by September. The US dollar remains strong, trading at 161.66 yen. • Economic Outlook: Analysts remain constructive on risk assets, highlighting Technology and Large Cap sectors. Market attention now shifts to the upcoming US core inflation data (forecast at 3.4%) and central bank communications.

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📈 CSE Announces S&P SL20 Mid-Year Index Rebalancing

The Colombo Stock Exchange has updated the constituents of the S&P SL20 index, effective 22 June 2026, following the mid-year review by S&P Dow Jones Indices. • New Additions: ACL Cables PLC CIC Holdings PLC Commercial Bank of Ceylon PLC (Voting Shares) • Exclusions: LB Finance PLC People’s Leasing and Finance PLC • Index Context: The S&P SL20 represents the 20 largest, most liquid, and financially viable companies on the CSE. Inclusion criteria require a minimum float-adjusted market capitalization of Rs. 500 million, specific liquidity thresholds, and positive net income over the preceding 12 months. • Current Composition: The updated index includes a mix of key sectors: Banking & Finance: Includes major entities like HNB, Sampath Bank, and NDB. Diversified Holdings: Features giants such as John Keells Holdings, Hayleys, and Melstacorp. Industrial & Consumer: Includes Access Engineering, Dialog Axiata, and Singer Sri Lanka among others. This rebalancing ensures the index continues to reflect the performance of leading blue-chip companies driving the local market.

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Global & International Business

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📈 Sri Lanka Boosts Trade & Investment Ties with China at CSAE 2026

Sri Lanka marked a powerful presence at the 10th China–South Asia Exposition (CSAE) in Kunming, China (June 11-16, 2026), fielding one of its largest-ever business contingents to deepen economic ties and expand market access. • Delegation & Scale: Led by Trade Minister Wasantha Samarasinghe, the delegation included over 250 business representatives from roughly 100 Sri Lankan exporters. The Sri Lanka Pavilion spanned over 1,000 square metres across 100 booths, provided entirely free of charge by Chinese organizers. • Sector Highlights: The pavilion showcased diverse national exports including Ceylon tea, spices, gems and jewellery, coconut-based products, seafood, apparel, handicrafts, and wellness products. Sri Lanka also joined the South Asia Commodity (Tea) Festival to strategically position Ceylon tea in the Chinese market. • Key Outcomes & Agreements: • Companies reported strong retail sales and secured promising business-to-business (B2B) partnerships for potential future export and distribution deals. • A formal Memorandum of Understanding (MoU) was signed between Sri Lankan exporter M/S Premium Beverages Ltd. and a major Chinese winery/liquor distributor. • The Chinese Government offered Sri Lankan exporters free warehouse facilities at the Kunming Comprehensive Bonded Zone under its "Three Facilitations and Three Exemptions" initiative to optimize supply chain efficiency. • Recognition: The Department of Commerce of Sri Lanka was honored with the "Outstanding Exhibition Organiser Award" for its successful coordination of the massive trade delegation.

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🇮🇳🇱🇰 Rupee Trade to Boost Indo-Lanka Commerce by 40%

Sri Lanka expects the newly introduced rupee-to-rupee trade mechanism with India to significantly scale up bilateral commerce while preserving scarce hard currency reserves. • Trade Growth Targets: Authorities are targeting a 15% to 20% increase in bilateral trade exchanges in the first year of implementation, rising to a 30% to 40% boost within two years. • Economic Benefits: The initiative will directly settle trade in Indian Rupees (INR) and Sri Lankan Rupees (LKR). This shifts reliance away from the US dollar, reduces transaction costs, eliminates conversion losses, and mitigates exchange rate volatility. • Financial Support: Indian banks in Colombo can now lend in INR to Sri Lankan importers, while local banks can borrow in INR to finance trade without dollar conversions. • Current Trade Dynamics: India is Sri Lanka’s second-largest export destination, with annual exports exceeding US$ 1.00 Bn. Sri Lanka imports nearly US$ 5.00 Bn from India annually. • Sector Impact: The mechanism heavily ties into manufacturing supply chains, particularly apparel & textiles. Sri Lanka imports roughly US$ 2.60 Bn worth of raw materials from India annually for its garment sector. • Bilateral Framework: The push coincides with the 25th anniversary of the India-Sri Lanka Free Trade Agreement (ISFTA) and the launch of the Indo-Lanka Chamber of Commerce and Industry (ILCCI) India Desk to provide regulatory guidance and market intelligence for local businesses.

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📈 Sri Lanka–Thailand Business Forum Focuses on Free Trade Agreement & Investment Growth

The newly enacted Sri Lanka–Thailand Free Trade Agreement (SLTFTA) took center stage at a high-level bilateral forum, aiming to strengthen supply chains, attract investment, and expand regional trade. • Overall Trade Figures: Bilateral trade surged to USD 649 million in 2025, marking a sharp 48% YoY growth from the previous year. • Key Investment Drivers: Major cross-border investments highlighted include Sri Lanka's Hayleys Group operating in Thailand, alongside prominent Thai ventures in Sri Lanka like INSEE Cement and CP Group. • Sector Breakdown & Opportunities: • Government and industry leaders identified high-potential sectors for future expansion, notably food processing, logistics, information technology, research and development, and technology-driven investments. • The Thai Chamber of Commerce highlighted further mutual opportunities across textiles, electronics, machinery, tourism, and healthcare. • Strategic National Context: Sri Lanka is being positioned as a strategic gateway to South Asia and the Middle East. Officials emphasized leveraging Sri Lanka's highly skilled workforce alongside Thailand's industrial strengths to build competitive regional value chains. • Regulatory & Digital Focus: Discussions stressed the importance of efficient customs procedures, digitalization, innovation, and maximizing FTA utilization to drive competitiveness and future business expansion.

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📈 Sri Lankan Exporters Back $36 Bn 2030 Target, Urge Pivot to Value Over Volume

Sri Lanka’s private sector has endorsed the Government's National Export Development Plan (NEDP) 2026-2030 targeting US$ 36 Bn in exports by 2030. However, industry leaders warn that success depends heavily on structural reforms, policy consistency, and premium market positioning. • Strategic Focus & Sectors: Leaders emphasize competing on quality, sustainability, and branding rather than volume or price against regional giants like India or Vietnam. Premium positioning is urged for traditional agriculture like tea (Ceylon Tea), Ceylon Cinnamon, and Ceylon Cashew to command global price premiums. • Key Risks & Supply Chain Vulnerabilities: Emerging European Union regulations require rapid adoption of strict traceability and responsible sourcing. Domestic supply chain weaknesses are hurting manufacturing; a notable decline in domestic rubber production has forced heavy reliance on imported raw materials. • Policy & Structural Demands: Exporters demand policy stability over the next 4–5 years to secure long-term investor confidence. Recommendations include cutting bureaucratic red tape for SMEs, expanding Sri Lanka's limited Free Trade Agreement (FTA) network, and investing in local advanced testing facilities to reduce overseas certification costs.

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📈 India Desk Launch & FTA Review Signal Reset in Sri Lanka-India Ties

Sri Lanka is planning a major shift in economic engagement with India, moving beyond traditional trade toward deeper integration in investment, technology, and digital commerce. • Overall Trade Figures: Bilateral trade has reached nearly US$ 5.8 Bn. Sri Lankan exports to India surpassed US$ 1 Bn for the first time in 2025, while imports from India climbed to US$ 4.3 Bn, underscoring a long-standing trade imbalance. • Investment Landscape: Cumulative Indian investments have exceeded US$ 2.5 Bn across key national sectors, including energy, manufacturing, telecommunications, banking, tourism, and infrastructure. • FTA Review & Policy: A comprehensive review of the 25-year-old India-Sri Lanka Free Trade Agreement (ISLFTA) by a Cabinet-appointed high-level committee is nearing completion, with recommendations expected in July 2026. • Sector & Market Diversification: Experts emphasize that Sri Lankan businesses must treat India as multiple distinct regional markets rather than a single entity. Strategic growth and technical partnership opportunities are opening up across apparel, ICT, food processing, tourism, logistics, pharmaceuticals, engineering, and electronics. • The India Trade Desk: Launched by the Indo Lanka Chamber of Commerce and Industry (ILCCI) and the Indian High Commission, this dedicated desk will help Sri Lankan companies and SMEs navigate India's business landscape by providing market intelligence, partner identification, and investment guidance.

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⚠️ NCE Warns Bottlenecks May Stall Sri Lanka’s US$ 36 Bn Export Goal

The National Chamber of Exporters (NCE) warns that unresolved regulatory and labor issues threaten the National Export Development Plan (NEDP) 2026–2030 target of US$ 36 Bn (US$ 28 Bn merchandise, US$ 8+ Bn services), which requires a 10–12% annual growth rate. 📈 Overall Performance • Total Q1 2026 exports hit US$ 4.31 Bn, up 1.59% YoY. Sector Breakdowns & Bottlenecks • Coconut Industry: January–April 2026 earnings surged 21.38% to US$ 406.28 Mn. However, value-added exporters face acute raw material shortages and rigid import curbs on coir bristle fibre. • Logistics & Freight Forwarding: Crashed 23.68% during January–April 2026 due to custom delays, lack of 24/7 synchronized terminal operations, and manual red tape. • Boat-Building: Grew 8.31% (Jan–Apr 2026) but faces severe infrastructure gaps and an 80% attrition rate in skilled trades due to overseas migration. • Mineral Sector: April 2026 exports rose 6.79% YoY. Growth is severely hampered by short mining license durations and an unfavorable royalty structure calculated on final export value rather than mine gate value. • Forestry & Floriculture: Contributes just 0.1% (US$ 5.3 Mn) to merchandise exports in 2026 so far; choked by paper-based single-consignment permit delays. • Fresh & Processed Agriculture: Local glass bottle shortages force imports, but rigid forex conversion windows restrict bulk-purchasing power. Key Systematic Hurdles • Labor: Severe skilled labor migration has prompted calls for a foreign worker recruitment framework. • Trade Barriers: India's BIS Quality Control Orders are creating heavy non-tariff barriers, while domestic trademark registrations take years. _Note: Figures based on provisional NCE and industry data._

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📈 Apparel Exports Post Strongest Monthly Growth This Year on US Demand

Sri Lanka’s apparel & textiles sector recorded its strongest monthly performance of 2026 in May, driven by a rebound in US demand despite ongoing tariff pressures. • Overall Performance: May 2026 exports grew by 7.96% YoY to US$ 394.14 Mn. However, cumulative exports for Jan-May 2026 stand at US$ 1.93 Bn, down 4.68% YoY due to early-year headwinds. • Market Breakdowns (May 2026): - United States: Up 15.36% YoY to US$ 149.96 Mn, leading the monthly recovery. - Non-Traditional Markets: Rose 14.61% YoY to US$ 70.67 Mn, showing positive diversification. - United Kingdom: Modest growth of 0.87% YoY to US$ 52.16 Mn. - European Union: Declined slightly by 0.3% YoY to US$ 121.35 Mn. • Policy & Tariff Context: The Joint Apparel Association Forum (JAAF) highlights that the US growth reflects strong buyer confidence in Sri Lanka's compliance and reliability. This comes ahead of a critical July 7 public hearing in Washington regarding a US Section 301 review. Sri Lanka faces a potential 12.5% tariff on forced labor import controls, while regional competitors like Bangladesh and Cambodia face 10%. JAAF continues to lobby for tariff parity to sustain this export momentum into the second half of 2026.

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Sri Lanka Strengthens Ties with US Amid Investment Push 📈

Sri Lanka has reaffirmed its commitment to neutrality and international law during a three-day visit by US Assistant Secretary of State S. Paul Kapur, aimed at bolstering bilateral cooperation. • Diplomatic Relations: Minister Vijitha Herath acknowledged US assistance in securing fuel supplies and providing maritime/defense assets for the Sri Lanka Navy and Air Force. • Investment Climate: The government is actively inviting increased American investment, citing an improved and secure business environment. • Economic Focus: Discussions prioritized expanding bilateral trade and exploring new opportunities for US companies within the country. • Strategic Partnership: The visit highlights Sri Lanka’s role as a key partner in the Indian Ocean region, with meetings scheduled between the US delegation, government leaders, and private sector executives. The visit concludes on June 24, focusing on long-term prosperity, security cooperation, and regional stability.

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📈 India-Sri Lanka Partner for Nationwide Disaster Early Warning System

Sri Lanka is set to launch a comprehensive early warning and emergency response system supported by an Indian grant, enhancing national disaster resilience. • System Capability: Enables authorities to broadcast life-saving alerts directly to mobile phones across the country, functioning even without active internet or mobile data. • Core Objectives: Strengthen last-mile communication for disasters including floods, landslides, and cyclones. • Implementation: Spearheaded by the Disaster Management Centre (DMC) and the Digital Economy Ministry, incorporating geospatial platforms for government-wide coordination and impact assessment. • Funding Context: Part of a broader US$ 450 Mn assistance package announced in December 2025, specifically prioritizing disaster preparedness and response. • Strategic Progress: Indian technical agencies have completed successful proof-of-concept demonstrations for the mobile broadcast network and landslide risk management, laying the foundation for an integrated national alert infrastructure.

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Sri Lanka Courts European Investment to Fuel Growth 📈

Sri Lanka has urged investors from Belgium and Luxembourg to capitalize on its ongoing economic stabilization and early-stage opportunities, highlighting the country's strategic maritime location and a decisive transition toward export-driven growth. Key Investment Targets & Sector Breakdowns • Infrastructure & Logistics: The state plans to open significant public-private partnerships (PPPs) this year under a new PPP Act, highlighting key investment openings in telecom, road networks, ports, airports, and Colombo Port City's expanding luxury marinas and shipbuilding ventures. • Green Technology: In line with regional sustainability goals, the government is actively seeking European investor expertise and partnerships to harness the nation's untapped renewable energy potential. • Agri-Food Processing: The government is focusing heavily on agricultural upgrades. Valuable organic crops are projected to multiply export value five-fold once secondary processing and value addition are integrated. Policy Reforms & Strategic Context • Regulatory Overhauls: To enhance the ease of doing business and create a single window for investment, the state is advancing critical legislative overhauls, including the Investment Protection Act, a unified labor code by end-2026, and updated land and tariff policies. • Trade Preferences: The delegation emphasized leveraging the European Union's GSP Plus preferential market access—a key trade benefit held by only six countries globally—to diversify Sri Lanka's highly concentrated export basket. • Economic Climate: Officials underscored that competitive labor costs, affordable real estate, and a stabilized, highly predictable macroeconomic environment make early market entry optimal for maximizing returns.

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📈 Sri Lanka & Turkish Airlines to Boost Air Connectivity, Tourism, and Cargo

• Flight Frequency & Cargo Expansion: Sri Lankan Ambassador Niluka Kadurugamuwa met Turkish Airlines CEO Ahmet Olmuştur on June 17 in Istanbul to discuss expanding passenger flight frequencies and enhancing cargo capacity to support growing bilateral trade. • Tourism & Joint Promotions: The discussion focused on leveraging Turkish Airlines’ extensive global network to increase tourist arrivals in Sri Lanka. Planned joint initiatives include destination marketing campaigns and familiarisation tours for travel agents and media. • Uninterrupted Operations: The Ambassador commended the airline for maintaining uninterrupted services on the Istanbul–Colombo route despite recent Middle East geopolitical challenges, keeping Sri Lanka connected to the western hemisphere. • Strategic Commitment: Turkish Airlines reaffirmed its commitment to boosting air connectivity by increasing flight frequencies as new aircraft are added to its fleet, enhancing long-term tourism and trade cooperation.

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📈 India Pushes Upgrade of Free Trade Agreement with Sri Lanka

India has signaled readiness to fast-track an upgrade of the 26-year-old India-Sri Lanka Free Trade Agreement (ISFTA), aiming to expand bilateral trade, services, and investments during Sri Lanka's economic recovery. • Overall Impact: Sri Lankan exports to India grew from ~$50 Mn in 2000 to over US$ 1 Bn in 2025 under the current goods-only ISFTA. A newly appointed Sri Lankan task force is currently reviewing the enhancement. • Key Priorities: The upgraded pact focuses on removing non-tariff barriers, strengthening rules of origin (similar to India-US/Canada lines), and incorporating trade in services without targeting specific Sri Lankan sectors. • Strategic Value: The move aligns with a proposed Sri Lanka-India-Japan economic corridor. A study estimates this export-oriented industrial corridor could boost Sri Lanka’s economic growth by up to 9.3% by 2030, positioning the island as a key logistics hub. • Context: This follows previous stalled integration efforts like CEPA (2008) and ETCA. Analysts note the upgrade could secure vital market access and attract export-oriented investments, provided local competitiveness concerns are addressed.

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Corporate News

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📈 187th AGM of Ceylon Chamber of Commerce Today

The Ceylon Chamber of Commerce will convene its 187th Annual General Meeting (AGM) today, June 25, 2026, at 5:30 p.m. at The Forum, Cinnamon Life. The event will focus on private sector competitiveness, trade partnerships, and economic stability. • Key Highlights: UK High Commissioner Andrew Patrick will attend as Chief Guest and deliver the keynote address. His participation underscores the ongoing trade and investment relationship between Sri Lanka and the United Kingdom. • Strategic Focus: Discussions will center on strengthening international trade ties, boosting investor confidence, and driving sustained economic reform. • Chamber Priorities: Chairperson Krishan Balendra will outline the Chamber’s agenda, focusing on private sector competitiveness, evidence-based policy advocacy, and anchoring long-term macroeconomic stability for Sri Lanka.

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📈 Fintrex Finance PLC Delivers 259% PAT Growth in FY2025/26

Sri Lankan non-bank financial institution Fintrex Finance PLC recorded a robust financial performance for the year ended 31 March 2026, driven by balance sheet expansion and revenue diversification. • Overall Earnings & Profitability Profit After Tax (PAT): Rs. 660.6 Mn (Up 259% YoY from the previous financial year). Gross Income: Rs. 6.74 Bn (Up 79% YoY). Net Interest Income (NII): Rs. 3.35 Bn (Up 92% YoY), with interest income up 65% to Rs. 5.76 Bn and interest expenses up 37%. Earnings Per Share (EPS): Improved significantly to Rs. 2.77 from Rs. 0.78. • Revenue Diversification Net Fee & Commission Income: Skyrocketed by 324% YoY to Rs. 950.3 Mn, helping the company reduce its concentration dependence on interest income. Impairment Provisions: Increased to Rs. 1.03 Bn, reflecting prudent provisioning alongside rapid portfolio expansion. • Balance Sheet & Capital Position Total Assets: Expanded by 45% YoY to Rs. 31.4 Bn. Loans & Advances: Surged 76% YoY to Rs. 19.46 Bn. Lease receivables grew by 8%. Customer Deposits: Increased by 33% YoY to Rs. 12.92 Bn, while borrowings rose 63% to Rs. 11.94 Bn. Total Equity: Rose 36% to Rs. 4.39 Bn, supported by a Rs. 500 Mn share issue which raised stated capital to Rs. 2.87 Bn, and a 172% increase in retained earnings. _Note: Figures are based on financial data reported for the period ending 31 March 2026._

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📈 Sarvodaya Development Finance Records Strong FY26 Growth

Sarvodaya Development Finance PLC (SDF) reported robust growth and improved asset quality for the financial year ended 31 March 2026. Key Financial Highlights: • Total Income: Reached Rs. 6.42 Bn, marking a 46.8% YoY increase. • Net Interest Income: Rose by 35.4% YoY to Rs. 3.58 Bn. • Net Profit: Surged by 73.1% YoY to Rs. 820.1 Mn (up from Rs. 473.8 Mn last year), with Earnings Per Share rising to Rs. 5.48. Balance Sheet & Portfolio Expansion: • Total Assets: Expanded by 65.8% to Rs. 37.37 Bn. • Loans & Receivables: Financial assets at amortized cost grew by 67.2% to Rs. 20.60 Bn, while lease rental receivables rose 34.0% to Rs. 9.19 Bn. • Funding & Sustainability: Strengthened its funding via debt securities, including Sustainable Bonds, totaling Rs. 2.09 Bn. Asset Quality & Efficiency: • Loan Quality: Gross Stage 3 Loans Ratio improved significantly, dropping to 4.93% from 7.88%. Net Stage 3 ratio fell to 2.94%. • Capital & Efficiency: Cost-to-Income Ratio fell to 42.99%, while Return on Equity rose to 19.60%. Tier 1 Capital Adequacy stood strong at 15.48%. National Context & Impact: Operating through 56 branches, SDF's expansion supports Sri Lanka's socio-economic development by focusing on inclusive finance and sustainable enterprise growth. Reflecting this stability, its external credit rating was upgraded to BBB- (Stable) by Lanka Ratings.

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📈 Richard Pieris Finance PBT Surges to Rs. 701.6 M in FY26

Richard Pieris Finance Ltd. reported a robust financial performance for the year ended 31 March 2026, driven by growth in its core financial services business, operational efficiencies, and diversified lending. Key Financial Highlights: • Profitability: Profit Before Taxes (PBT) rose to Rs. 701.6 m. Profit After Tax (PAT) surged by 76% Year-on-Year (YoY) to Rs. 448.7 m (compared to Rs. 254.7 m in FY25). Net operating income grew to Rs. 1.74 b. • Asset Base: Total assets expanded to Rs. 24.57 b from Rs. 20.24 b in the previous year. • Funding & Capital: Customer deposits grew to Rs. 11.68 b, while shareholders' funds strengthened to Rs. 4.43 b, reinforcing the company's capital resilience. Portfolio & Operations: • Lending Growth: The total loans and advances portfolio expanded to Rs. 10.84 b, and lease receivables grew to Rs. 7.41 b. • Diversification & Tech: Growth was supported by a diversified mix including vehicle leasing, gold loans, Islamic finance, consumer lending, and the new 'Sarumaga' mortgage solution. The company also pushed digital adoption by launching a Loan Origination System (LOS) Mobile App and a smartphone financing scheme. • Credit Rating: Reaffirmed its Fitch rating of 'A(lka)' with a stable outlook, backed by the stability of the parent conglomerate, Richard Pieris Group.

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📈 Teejay Group Navigates Textile Demand Slump with Balance Sheet Resilience

The apparel & textiles giant Teejay Group reported its full-year financial performance, reflecting severe global headwinds alongside a resilient financial position based on provisional data as of 31 March 2026. • Overall Figures: • Group Revenue reached LKR 60.04 Bn, a 10% YoY decline. • Gross Profit fell 36% YoY to LKR 5.02 Bn. • Profit After Tax (PAT) dropped 98% YoY to LKR 54.7 Mn, heavily impacted by higher rupee costs, right-sizing restructuring costs, and provisions for doubtful debts. • Market and Sector Pressures: • Topline growth was weighed down by continued softness in global textile demand, reciprocal tariffs imposed by the US, and intense pricing pressures. • Margins were squeezed by underutilization of plant capacity, lower production volumes, and an unfavorable product mix. • Financial Position & Resilience: • Despite a steep drop in earnings, the balance sheet remains strong through disciplined working capital management. • Cash and cash equivalents stood at LKR 8.3 Bn. • Net asset base increased by 3% YoY to LKR 32.4 Bn. • Net Asset Value (NAV) per share improved from LKR 43.70 to LKR 44.91, reinforcing shareholder value protection.

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### SANASA Life Insurance to Raise Rs. 500 Mn 📈

SANASA Life Insurance Company PLC has announced a private placement to raise up to Rs. 500 million through a debenture issue. • Issue Details: The company will issue 5 million unrated, unlisted, unsecured, Tier II, redeemable, cumulative, subordinated debentures. • Regulatory Compliance: The issue has received approval from 75% of existing listed debenture holders. The Trustee for existing debentures granted concurrence on 26 March 2026. • Financial Impact: The company confirmed the proposed issue will not adversely affect the rights, security, or repayment capacity of existing listed debenture holders. • Market Context: This move aligns with the Securities and Exchange Commission’s approval letter dated 6 April 2026, marking a strategic step for the insurance sector to bolster its capital base.

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🇮🇳 Cabinet Approves Rs. 1.1 Bn Delhi Ground Handling Contract for SriLankan Airlines

The Cabinet has approved a ground handling services contract for SriLankan Airlines at Delhi’s Indira Gandhi International Airport, securing essential operational support at one of the national carrier’s key regional destinations. • Contract Value & Timeline: Awarded to Bird Flight Services (India) Private Limited for Indian Rs. 332.85 million (approximately LKR 1.1 billion). The agreement spans a three-year period, effective from 1 June 2026 to 31 May 2029. • Bidding Process: The contract was finalized through a limited international competitive bidding process. Bird Flight Services was selected as the lowest responsive bidder out of two total bids received. • Strategic Context: The proposal was submitted by the Minister of Ports and Civil Aviation, Bimal Rathnayake, and recommended by the Standing Procurement Committee. The deal ensures uninterrupted aviation support services in the vital Indian market, which is critical for Sri Lanka's tourism and regional connectivity.

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Listed Corporate Earnings Contract 11.4% YoY in March 2026 Quarter 📈

• Overall Performance: Aggregate earnings of 271 listed companies declined 11.4% YoY, marking the third consecutive quarter of contraction. However, when adjusted for massive one-off exceptional items, underlying core corporate profitability remained robust, growing at 30.1% YoY. • Food, Beverage and Tobacco: Earnings plunged 73.8% YoY and 55.0% QoQ, acting as the primary drag on aggregate figures. This contraction was driven by a high base effect from a Rs. 35 Bn one-off gain by Browns Investments in 2025, alongside a Rs. 24-25 Bn (~US$ 108.4 Mn) administrative fine on Carson Cumberbatch and Bukit Darah's Indonesian subsidiary. Crucially, 31 of 45 sector companies remained profitable due to volume-driven growth. • Retailing: Emerged as the strongest sector, skyrocketing 404.6% YoY and 62.5% QoQ. Growth was driven by a surge in vehicle imports during Jan-Mar 2026, propelling United Motors Lanka earnings up 750.4% YoY to Rs. 2.1 Bn. Richard Pieris and Company expanded 246.8% YoY to Rs. 2.6 Bn, while Singer Sri Lanka grew 77.5% YoY on electronic appliance demand. • Telecommunications: Delivered an outstanding quarter, with earnings rising 99.8% YoY and 26.9% QoQ. Dialog Axiata led the sector (+122.4% YoY) via subscriber growth and cost efficiencies, while Sri Lanka Telecom expanded earnings by 53.3% YoY. • Diversified Financials: Post-tax profits dipped 5.0% YoY. The decline was heavily influenced by First Capital Holdings recording a Rs. 1.2 Bn mark-to-market loss as market yields rose amid US-Iran geopolitical tensions. In contrast, larger finance firms recorded strong growth from expanded net interest income and vehicle loan books.

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✈️ MTI Revisits Historic Emirates-Era Turnaround of SriLankan Airlines

In light of the Government’s recent restructuring plans for SriLankan Airlines, MTI Consulting has highlighted a past case study showing how the national carrier previously moved from severe losses to profitability. • The Crisis Context: Around 2000–2001, the airline faced massive challenges, recording losses of Rs. 750 Mn in 2000 and Rs. 6.5 Bn in 2001. This was compounded by the 2001 Katunayake airport attack which destroyed half its fleet, alongside global post-9/11 industry declines and weak internal route management. • The Turnaround Strategy: Partnering with then-CEO Peter Hill, MTI initiated a strategic plan targeting a short-term profit of US$ 48 Mn by 2005. The turnaround focused on 7 core pillars: corporate brand equity, profitable selling, route rationalisation, upgrading Business Class, IT investments, service quality, and cost optimisation. • Key Achievements & Recognition: Revenue per employee tripled from 1998/99 levels to reach Rs. 9 Mn in 2003. The carrier secured global accolades, including the _Airline Turnaround of the Year (2004)_ and _Skytrax Best Airline in Central Asia_ for four consecutive years (2001–2004). • National & Present-Day Relevance: The historical success contrasts sharply with the airline’s subsequent trajectory. Between 2006 and 2015, it became Sri Lanka's third largest loss-making State-Owned Enterprise (SOE), racking up Rs. 128 Bn in cumulative losses—surpassing the State's entire 2014 recurrent health budget. MTI emphasized that strict strategic execution can restore SOE profitability without altering core staff resources.

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🚨 BoI Report Uncovers Major Fraud & Tender-Rigging at SriLankan Airlines

• Rigged Duty-Free Tender: The Board of Inquiry (BoI) revealed a US$ 8.21 Mn (~Rs. 1.06 Bn) contract for onboard wines and champagne was corruptly awarded to M/S Phoenix. Former top management bypassed 17 shortlisted bidders, allowing the vendor to select its own tasting panel to secure the contract. • Compromised Aviation Security: SLA bypassed transparent protocols to hand over airline and cargo security operations to Rakna Arakshaka Lanka (RAL) via an unsolicited proposal, despite the firm having zero specialized experience in the aviation security sector. • Political Patronage & Losses: A senior cabin crew member was irregularly released to conduct political work while continuing to draw a salary from the airline, resulting in a fraudulent loss of Rs. 4.28 Mn to public property. • Abuse of Power: The London-based Senior Country Manageress was punitively transferred in 2012 after rightfully objecting to flying illegal, unaccompanied baggage containing vehicle spare parts for political relatives, preventing a major international security breach.

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Softlogic Life Expands Regionally with USD 1.9 Mn Bangladesh Acquisition 📈

• The Deal: Softlogic Life Insurance PLC has officially entered the Bangladeshi market by signing a Share Purchase Agreement (SPA) to acquire a 60% majority stake in Diamond Life Insurance Company Limited. • Financial Details: The transaction is valued at approximately USD 1.9 million, marking a strategic capital deployment for cross-border diversification. • Strategic Impact: By securing control of a licensed life insurer, the Sri Lankan firm establishes a direct foothold in Bangladesh’s rapidly growing insurance sector, advancing its broader long-term regional expansion goals beyond its domestic borders.

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✈️ Emirates Marks 40 Years of Connecting Sri Lanka to the World

International airline Emirates is celebrating four decades of operations to Colombo, significantly bolstering Sri Lanka's tourism and trade connectivity since April 1986. • Key Operational Milestones: • Accumulated over 15 million passengers across 97,000+ flights. • Uplifted more than 403,000 tonnes of cargo in the last two decades alone, supporting the export economy. • Currently operates three daily flights utilizing a mix of Boeing 777 and Airbus A350 aircraft. • Market & Travel Breakdown: • Top Inbound Markets: Primarily driven by Europe, with major passenger volumes originating from the UK, Germany, France, Italy, the Netherlands, and Switzerland. • Top Outbound Destinations: Sri Lankan travelers primarily flew to Dubai, Saudi Arabia, the UK, Italy, France, and Madagascar. • Strategic Partnerships & Upgrades: • Expanded its interline partnership with SriLankan Airlines in 2023 to cover 30 routes across the Far East, Africa, Middle East, and South Asia. • Enhanced premium travel infrastructure by introducing Premium Economy cabins on its retrofitted Boeing 777 and new Airbus A350 fleets.

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Regulatory & Policy News

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📱 Private Bill Seeks Social Media Ban for Sri Lankan Minors Under 16

Opposition MP Faiszer Musthapha has submitted a Private Member’s Bill titled 'Social Media Minimum Age' to Parliament, aiming to restrict digital access for children to enhance child safety. • Key Legislative Proposals: • Prohibits children under 16 from accessing social media platforms. • Grants the Child Affairs Minister broad powers to block access, enforce daily usage limits, and restrict specific online hours for minors. • Appoints an Authorised Commissioner under the National Child Protection Authority (NCPA) to investigate complaints and enforce compliance. • Scope of the Ban: • Targets conventional social media but defines services broadly as any electronic service facilitating online interaction and content posting. • This definition could potentially sweep in digital platforms across the ICT landscape, including messaging, gaming, and content-sharing services. • National & Global Context: • The Bill aligns with a growing global push to counter cyberbullying, mental health issues, and excessive screen time. • If passed, Sri Lanka would become one of the few regional countries with statutory age restrictions, though global precedents show heavy challenges in age verification, privacy, and enforceability.

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Policy Debate: Balancing Beneficial Ownership Rules and Business Ease 📈

Sri Lankan business leaders and governance professionals are calling for vital reforms to the Registrar of Companies' eROC platform, warning that new beneficial ownership rules could inadvertently stifle economic agility. • Systemic Friction: While the corporate sector welcomes the transparency aimed at curbing financial crimes, current beneficial ownership regulations risk creating parallel reporting mechanisms, triggering severe duplication of data already stored in the eROC system. • Key Operational Bottlenecks: Real-Time Constraints: The eROC platform currently lacks the capacity for real-time share transfer reporting, creating structural delays. Clerical Rigidities: Simple typos in filings require entire submissions to be canceled and manually re-entered, compounding administrative compliance costs. Verification Concerns: Professionals argue the burden of accountability should rest directly on company owners, rather than forcing intermediaries to certify unverified information. • Impact on Major Sectors: Publicly Listed Companies: Already heavily regulated by the Colombo Stock Exchange (CSE), forcing them to duplicate disclosures for >10% shareholdings. Non-Profits & Associations: Applying rigid frameworks to guarantee-based entities (charities, trade bodies) that hold no traditional share capital. • The Path Forward: Corporate leaders urge policymakers to leverage Sri Lanka's highly capable ICT/BPM sector to seamlessly integrate compliance features into the existing infrastructure. Resolving these eROC technical limitations is viewed as crucial to maintaining global competitiveness and attracting direct foreign investment.

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📦 Sri Lanka Health Ministry Launches New Guidelines to Curb Rising Childhood Obesity and Diabetes

The Ministry of Health has introduced the "Guide to Healthy School Canteens" during National Nutrition Month 2026 to improve meal quality and combat alarming health trends among students, based on recent provisional survey data for children aged 13–17. • Key Health Metrics & Concerns: • 12% of schoolchildren are overweight. • 3% of schoolchildren are clinically obese. • The surge in obesity is directly fueling an increase in childhood diabetes across the island, raising severe concerns amid a declining national population growth rate. • Dietary Risk Factors (Daily/Frequent Consumption): • 41% of students consume high-sugar foods at least once a day. • 29% consume high-fat foods. • 28.05% consume high-salt foods. • 17.04% consume carbonated soft drinks daily. • Implementation Challenges: • High prevalence of fast food in urban school canteens and aggressive advertising targeting minors. • Commercially available sweet and instant machine drinks heavily exceed official Health Ministry sugar thresholds. • Regulatory enforcement faces pushback, including instances where corporate sponsors withdrew school funding following past food regulation changes.

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⚠️ Financial Alert: Central Bank Warns Against Sophisticated Pyramid Schemes

The Central Bank of Sri Lanka (CBSL) has issued a stark warning regarding the evolution of illegal pyramid schemes, which are increasingly masquerading as legitimate jobs, online apps, and cryptocurrency investments. • Legal Implications & Penalties Under Section 83C of the Banking Act of Sri Lanka, starting, promoting, or participating in a pyramid scheme is strictly illegal. Convicted individuals face fines up to Rs. 10 million or imprisonment for up to 3 years. • The Core Fraud Mechanism Unlike legitimate businesses, these schemes provide no real goods or services. They rely entirely on a continuous flow of cash from new recruits at the bottom to pay early members, inevitably resulting in a total collapse where the vast majority lose their savings. • Key Disguises to Watch Out For Fake Multi-Level Marketing (MLM): Using overpriced, low-quality, or symbolic products as a front, while the true focus remains solely on member recruitment. Company Registration Abuse: Fraudsters present legitimate Registrar of Companies certificates to imply their business operations are legal, which is false. Digital & Crypto Scams: Mobile apps displaying fake earnings or promising returns via foreign currency and cryptocurrency (which is not legally recognized in Sri Lanka). Deceptive Training Programs: High-fee weekend workshops promising certificates and employment, but relying entirely on continuous enrollment fees. • National & Social Impact Beyond severe individual financial ruin and debt, these illegal operations heavily fracture societal trust, damage community relationships, and threaten the stability of the broader financial sector and consumer economy. _Note: Suspicious activities should be reported directly to the local police or the Central Bank’s Financial Consumer Relations Department._

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📈 Study Highlights Trade Policy Impact on Sri Lanka's Workforce

A new study by Nilupulee Rathnayake (Neelan Tiruchelvam Trust) reveals how trade policies directly shape labour informality in Sri Lanka's manufacturing sector between 2014 and 2021. • Overall Reality: Nearly 70% of Sri Lanka's total workforce remains trapped in informal employment, lacking legal contracts, social security, and reliable protections. • Tariffs & Imports: Higher tariffs shield domestic industries from global competition but increase informal jobs, as protected firms cut costs via casual labour. Conversely, lower tariffs and higher imports drive formalisation by forcing local firms to boost efficiency and labor standards. • Export Sector Anomaly: Contrary to global trends, expanding exports correlate with higher levels of informal work in Sri Lanka. Flagship industries like apparel & textiles rely heavily on precarious subcontracting and casual labor to maintain low-cost flexibility. • Socioeconomic Disparities: Women, rural/provincial laborers, and workers with lower education levels bear the brunt of informal employment, worsening gender and regional inequalities. The 2020–21 COVID-19 pandemic further shattered standard market patterns, aggressively pushing vulnerable workers into precarious roles. • Recommendations: The study stresses that trade liberalisation alone cannot guarantee decent work. It urges policymakers to tie trade reforms with strict enforcement of fair labor contracts, strengthen social safety nets (pensions, health coverage), and targeted oversight within apparel subcontracting chains to transition small producers into formal operations.

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📈 Harsha de Silva Urges Govt. to Overcome ETCA Deadlock with India

Opposition MP Dr. Harsha de Silva has called on the government to advance beyond the 25-year-old India-Sri Lanka Free Trade Agreement (ISFTA) and finalize the Economic and Technology Cooperation Agreement (ETCA) to secure regional value chains and accelerate economic growth. • Key Demands & Economic Impact • Value-Chain Integration: Stated that Sri Lanka risks missing India’s rapid growth expansion; urged moving from first-generation trade pacts to second-generation agreements focusing on manufacturing value chains and production networks. • Services Sector Safeguards: Highlighted that the services sector accounts for ~60% of Sri Lanka's GDP. Called for a pragmatic approach with strict regulations and accreditation frameworks to protect the domestic workforce rather than outright protectionism. • Investment Certainty: Emphasized that a modernized framework is crucial to guarantee regulatory certainty and attract higher foreign direct investment (FDI) inflows. • Trade Barriers & Obstacles • Non-Tariff Barriers: Insisted that India must resolve practical bottlenecks for Sri Lankan exporters, including product certification delays, rigorous testing requirements, and port inefficiencies. • Political Will: Criticized long-standing anti-ETCA lobbying that has stalled progress for nearly 15 years, noting that ETCA has been conspicuously absent from recent bilateral joint statements. • Bipartisan Support Offer • Assured that the Opposition will provide bipartisan backing for any final economic agreement with India, provided it safeguards Sri Lanka's national interest and expands its marketplace beyond domestic limits.

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Crypto Tax Enforcement: Sri Lanka’s Strongest Weapon Against Financial Fraud 📈

• The Core Issue: Regulatory gaps and the absence of clear digital asset rules have turned cryptocurrency into a "highway for fraudsters" to siphon funds abroad. A recent Rs. 290 Mn fraud case highlighted how criminals exploit the Foreign Exchange Act with zero Central Bank oversight. • The Policy Gap: Sri Lanka’s Inland Revenue Act No. 24 of 2017 remains dangerously outdated. The Inland Revenue Department (IRD) currently treats crypto loosely as "intangible assets" subject to Capital Gains Tax (up to 30% for companies, 15% for individuals) or trading profits (up to 36%). However, the law remains completely silent on common activities like staking rewards, airdrops, DeFi yields, and mining. • The Al Capone Strategy: Proving complex criminal offenses takes time. Implementing express tax legislation shifts the burden of proof to individuals to justify their digital wealth, enabling faster intervention, asset recovery, and a transparent audit trail to combat money laundering. • Global Roadmap: India successfully used taxation as a surveillance tool in 2022 by introducing a 30% flat tax on digital assets and a 1% Tax Deducted at Source (TDS), allowing real-time transaction tracking. Over 75 countries are now adopting the OECD’s Crypto Asset Reporting Framework (CARF). • Five Urgent Amendments Needed: 1. Insert a broad, technology-neutral statutory definition for Virtual Digital Assets. 2. Explicitly list all taxable crypto events (e.g., fiat conversions, crypto-to-crypto swaps, airdrops). 3. Mandate transaction valuation at LKR fair market value. 4. Enforce a source-of-funds declaration during acquisition. 5. Mandate transaction data reporting from exchanges to the IRD.

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📈 CDS to Suspend Dormant Investor Accounts

The Central Depository System (CDS) has announced a phased framework to suspend non-operative investor accounts to enhance regulatory compliance and mitigate fraud risks. • Implementation Timeline: • 15+ years of inactivity: Effective 30 June 2026. • 10+ years of inactivity: Effective 30 September 2026. • 5+ years of inactivity: Effective 31 December 2026. • 3+ years of inactivity: Effective 31 January 2027. • Key Safeguards: • Suspended accounts retain ownership of securities; dividends and corporate entitlements remain unaffected. • Securities will not be forfeited or cancelled. • Trading and transactions will be restricted until successful reactivation. • Reactivation Process: • Individual investors can reactivate accounts digitally via the CSE Mobile App or CDS website. • Institutional investors must submit CDS Form 31 via their respective depository participants. • Updated KYC documentation is required to complete the process. This initiative aims to improve data quality across the capital markets while ensuring an orderly transition for stakeholders.

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Is a TIN Mandatory for All Sri Lankans Over 18? Law vs. Misconception 📄

A widespread public belief that every individual over the age of 18 in Sri Lanka must mandatorily obtain a Tax Identification Number (TIN) is a legal misconception, according to analysis based on recent legislative changes. • The Legal Reality: Under the Inland Revenue Act, the legal obligation to register for a TIN is strictly tied to tax liability and income tax criteria, not age. An individual is legally required to get a TIN only if their annual net income exceeds Rs. 1,800,000. • Impact of 2026 Amendments: The recently enacted Inland Revenue (Amendment) Act, No. 11 of 2026, chooses a targeted approach rather than a blanket age mandate. It dictates that a TIN is required only when undertaking specified transactions or services, such as opening bank accounts, registering vehicles or lands, and establishing a business. • Status of the 2023 Gazette: The 2023 Gazette notification that originally sought to mandate registration based on age was effectively abandoned by the previous administration due to legality and feasibility issues. The 2026 amendment has now rendered that age-based directive obsolete. • Alternative for Tax Administration: To build a comprehensive taxpayer database without a colossal administrative burden, existing laws (Amendment Act, No. 45 of 2022) already permit inter-agency data sharing. The Inland Revenue Department can legally pull voter registration data directly from the Commissioner General of Elections. _Conclusion_: Unless an individual possesses taxable income or engages in the specific transactions designated by Parliament, obtaining a TIN remains a transaction-based requirement rather than a collective obligation for all adults.

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⚖️ Sri Lanka Enacts Landmark Civil and Commercial Mediation Law

The Parliament of Sri Lanka unanimously passed the Mediation (Civil and Commercial Disputes) Bill on 11 June 2026. Introduced by Justice Minister Harshana Nanayakkara, the new law establishes a disciplined, globally recognized framework for alternative dispute resolution (ADR), aiming to ease massive gridlocks in the judiciary. • Overall Backlog & Economic Impact: Sri Lanka’s formal courts face a staggering backlog of over 1.1 million pending cases. Chronic judicial delays directly disrupt the local business climate, contract enforcement, and foreign direct investment. • Core Framework & Legal Validity: The law recognizes voluntary mediation for high-value disputes based on international best practices from the UN Mediation Convention (Singapore Convention). Signatures on mediated settlement agreements are now legally valid and enforceable as a court decree, bypassing traditional litigation. • Operational Guarantees: Ensures total confidentiality, arbitrator neutrality, and party autonomy. Court judges hold discretionary power to refer civil disputes to private mediators without coercing final outcomes. • Strict Category Exemptions: A total of 11 action categories—including marriage termination, nullity declarations, child adoptions, and land partition—cannot be conclusively settled outside of standard court decrees. • Institutional Growth: The local private sector led drafting efforts alongside the International ADR Center (IADRC). Professional training is scaling rapidly, with 125 District Judges and a growing network of lawyers completing certified mediation and non-adversarial advocacy programs.

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PDPA Enforcement Nears: LFC Sector Urged to Fast-Track Compliance 📈

• Overall Context: The Personal Data Protection Act (PDPA) No. 09 of 2022 is moving closer to full operation as the Data Protection Authority of Sri Lanka expands its team and prepares to gazette incoming regulations. Financial institutions are urged to take proactive steps now to avoid penalties. • Regulatory & Governance Scope: • Sri Lanka's enforcement model focuses on a mandatory inquiry process, allowing firms to correct non-compliant behavior before penalties under Section 38 apply. • Section 39 lists internal compliance systems as explicit mitigating factors for penalty calculations. • Section 38(6) extends corporate liability directly to company directors and officers for willful blindness or institutional negligence. • Sri Lanka aims to join the Global Privacy Assembly within the next year to align with international cross-border cooperation standards. • Sector & Operational Breakdowns: • Finance & Banking: Financial institutions can process data without explicit consent under legal obligations (e.g., Customer Due Diligence or filing Suspicious Transaction Reports under the Financial Transactions Reporting Act) or legitimate interests. • Consent is strictly mandatory for marketing communications and must be requested separately from general terms. • Highlighting the scale of compliance, a data mapping exercise by Hatton National Bank (HNB) mapped data flows across ~100 distinct departments and roughly 1,500 separate business processes. • Public Sector: Unlike India's digital-only law, Sri Lanka's PDPA covers both digital and physical structured data, significantly increasing compliance complexity for state departments (e.g., Motor Traffic, Immigration, and Land Registries) which currently lag behind the private sector. • Key Technical Risks: Emerging challenges include managing consent during cloud migrations and governance risks from AI platforms, where personal data might be fed into large language models for unintended purposes.

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📈 Stricter US Traceability Rules Lift Compliance Burden on Sri Lankan Apparel

The US Customs and Border Protection (CBP) has issued strict new guidance under the Uyghur Forced Labour Prevention Act (UFLPA). This requires comprehensive raw-material-to-product documentation for entering the US market, impacting local exporters. • New Compliance Demands: Simple supplier declarations are no longer sufficient. Importers must track the entire supply chain—including cotton origin, yarn production, fabric manufacturing, and garment assembly—using commercial records like purchase orders, production data, and potentially isotopic testing. • Dual Trade Pressures: This development arrives alongside a separate USTR proposal to place Sri Lanka under a higher 12.5% duty regime following a Section 301 investigation into forced labour import policies. • Macro Context & Impact: • Apparel & textiles is Sri Lanka’s top export earner, accounting for nearly 40% of merchandise earnings and bringing in over US$ 4 Bn annually. • The US is Sri Lanka's largest single market (22% of total merchandise exports). • April 2026 exports to the US fell 3.15% YoY to US$ 196.37 Mn, while cumulative Jan-Apr 2026 exports dipped 2.09% YoY to US$ 945.76 Mn. Market access to Sri Lanka's primary export destination will now heavily rely on local manufacturers' ability to maintain meticulous, verifiable end-to-end supply chain transparency.

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Politics & Government Impact

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🤝 TPA Delegation Meets Australian High Commissioner on Malaiyaha Tamil Rights

A Tamil Progressive Alliance (TPA) delegation, led by MP Mano Ganesan, met Australian High Commissioner Matthew Duckworth in Colombo to discuss critical issues facing Sri Lanka's fourth largest ethnic community (approx. 1.5 million people). • Socio-Economic Shifting Focus: Ganesan emphasized transitioning the community's focus from historical indentured labor origins toward modern needs like equal citizenship, education, housing security, and national economic integration. • Land Tenure Challenges: The delegation highlighted that despite centuries of economic contributions, thousands of plantation families still lack secure land rights and remain excluded from national land allocation benefits—stifling dignity and social mobility. • Resettlement & NBRO Delays: Discussions addressed slow resettlement for landslide-displaced families in Central and Uva provinces. Ganesan thanked Australia for funding NBRO digital mapping upgrades, noting that clearance delays currently stall safe land releases. • Governance & Representation: The TPA raised unfulfilled minority inclusion commitments by the current NPP government and briefed the High Commissioner on the proposed National Tamil Community Council (NTCC) to represent dispersed communities.

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📈 Advocata Urges Vehicle Tax Regime Overhaul Amid Registration Shift

Think tank Advocata Institute has submitted proposals to the Finance Ministry calling for the replacement of Sri Lanka's complex engine-capacity-based vehicle taxation with a progressive value-based system to eliminate market distortions and encourage cleaner technology. Key Tax Critiques & Impact • Tax Anomalies: Current engine capacity-based duties can push levies on hybrids close to 300% of their import value. For example, a Toyota RAV4 hybrid valued at Rs. 11 Mn faces over Rs. 32 Mn in taxes, resulting in just 16 registrations between January 2025 and May 2026. • Proposed Reform: Shifting to a progressive ad valorem model (taxing incremental value above thresholds) to ensure transparency, prevent under-invoicing, and maintain revenue neutrality. May 2026 Vehicle Registration Trends • Total Rebound: Total vehicle registrations rose to 62,776 units in May from 51,156 in April, driven by two- and three-wheelers. • Three-Wheelers & Two-Wheelers: Three-wheeler registrations jumped over fourfold to 5,669 units (from 1,355 in April). Two-wheelers grew to 43,842 units. • Motor Cars: Rose to 4,738 units (from 3,238 in April). Brand-new registrations more than doubled to 1,199 units, led by entry-level EV models from BYD (468 units) and BAW (553 units). • Hybrids: Registrations increased to 2,745 units (from 2,316 in April), dominated by Honda and Toyota SUVs. • EV Sector Decline: Total EV registrations dropped to 6,248 units in May from 8,098 in April, primarily due to a slowdown in electric two-wheelers, which still led the segment at 5,013 units. Cash purchases dominated, with financing penetration dipping to 34.2%. _Data based on JB Securities market tracking._

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🚨 Sri Lanka Narcotics Seizures Top Rs. 226 Bn in 16 Months

Public Security Minister Ananda Wijepala revealed large-scale drug recoveries and internal trafficking irregularities in Parliament yesterday. • Overall Figures: Total seizures reached over Rs. 226 billion since the beginning of 2025. This includes Rs. 154 billion recovered in 2025 and an additional Rs. 72.3 billion seized between January 1 and April 30, 2026. • Breakdown of Key Seizures (2025): Law enforcement recovered 1,571.3 kg of heroin, 14,714 kg of cannabis, 2,741 kg of crystal methamphetamine (ICE), 37.9 kg of cocaine, 699 kg of hashish, 615,000 capsules, and 3 million tablets. • Breakdown of Key Seizures (Jan-Apr 2026): Recoveries included 1,189.7 kg of heroin, 3,184 kg of cannabis, 261 kg of cocaine, 1,260 kg of hashish, 779,460 capsules, and 651,101 tablets. • Court Custody & Irregularities: Approximately 80,000 kg of various narcotic substances are currently held in Court vaults pending destruction. Serious irregularities were disclosed, including a Colombo Magistrate's Court officer selling 750 g of heroin and a Government Analyst's Department officer attempting to sell 250 g of ICE from custody. • Government Expenditure: The State has spent Rs. 780 million on reward payments to Police officers and informants contributing to these detections.

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Geopolitical Shifts & Easter Sunday Massacre Scenarios: Lessons for Sri Lanka 📈

• Foreign Policy & Diplomacy: The US-Iran 'Islamabad MoU' signed in Switzerland highlights a structural shift toward a multipolar world economy. Pakistan successfully balanced relations between Washington and Beijing to facilitate the truce, while India faced setbacks by abandoning traditional ties with Iran. • Strategic Rebalancing: Sri Lanka's national interests are best served by restoring traditional ties with China, Pakistan, and the OIC (Organisation of the Islamic Conference) countries, rather than over-relying exclusively on the Indo-US or Quad equations. • Easter Attack Controversies: Questions are raised regarding the alleged "mastermind" behind the Easter Sunday massacre. Insiders challenge claims against ex-spy chief Suresh Sallay, pointing instead to potential external covert operations by foreign intelligence networks designed to influence local electoral outcomes. • Defense Procurement: In mid-2021, amid severe foreign exchange shortages and an agrochemical import ban, the Gotabaya Rajapaksa administration controversially prioritized a US$ 50 Mn contract with Israeli Aerospace Industries to refurbish obsolete Kfir aircraft over more flexible credit alternatives from China.

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📈 Cabinet Approves Rs. 1 Bn Aviation Communications System Upgrade

• Project Overview: The Cabinet has cleared the procurement process to install a new Aeronautical Message Handling System (AMHS) at Ratmalana for Airport and Aviation Services (Sri Lanka) Ltd. (AASL). • Funding & Cost: The project is estimated to cost Rs. 1 billion and will be entirely financed through the capital budget of AASL. • Strategic Importance: The upgrade replaces an existing platform nearing the end of its operational life. It modernizes critical aviation infrastructure by facilitating the transmission of operational and safety-related messages among local and international airports, airlines, and aviation authorities. • Current Status: The proposal was submitted by Ports and Civil Aviation Minister Bimal Rathnayake and announced by Cabinet Spokesperson Minister Dr. Nalinda Jayatissa, marking the official initiation of the procurement phase.

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🏛️ Parliament Disrupted Over Judicial Debate Standoff

Parliamentary proceedings were briefly disrupted yesterday following a heated standoff between the Government and the Opposition over an urgent debate request regarding Sri Lanka's judiciary. • The Dispute: 20 Opposition MPs submitted a letter to Speaker Jagath Wickramaratne seeking an adjournment debate under Standing Order 19(1) to address mounting structural challenges, critical vacancies, and proposed changes to the retirement age of judges. • Government Stance: Leader of the House, Minister Bimal Rathnayake, denied the immediate request, citing a lack of time due to an ongoing debate and a scheduled vote at the conclusion of the day's proceedings. • Opposition Concerns: Opposition Leader Sajith Premadasa, along with MPs Harsha de Silva and Dayasiri Jayasekera, strongly objected. The Opposition warned that prolonged judicial vacancies and administrative deficiencies are severely straining court efficiency, causing growing case backlogs, delaying legal remedies, and risking a decline in public confidence in the justice system. • Current Status: Following a 10-minute adjournment by the Speaker to defuse tensions in the Chamber, parliamentary proceedings were resumed. No immediate date has been finalized for the requested discussion on judicial reforms.

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IRD Announces Sweeping Tax Reforms Under New Act 📈

The Inland Revenue Department (IRD) has introduced extensive tax changes following the enactment of the Inland Revenue (Amendment) Act, No. 11 of 2026. Key changes include: • Individual & Employee Relief: Gains from selling personal motor vehicles are exempt from tax (retrospective from 1 April 2024). Salaried employees under full Advance Personal Income Tax (APIT) with no other income (or interest income under Rs. 5,000) are exempt from maintaining tax files or filing annual returns. • Professional Services WHT: The 5% Withholding Tax (WHT) on service fees over Rs. 100,000/month has been expanded to include professionals in ICT/BPM (IT and social media specialists), artists, dentists, and event organizers. • Capital Gains & Investments: Capital gains tax is revised to 15% for individuals/partnerships and 30% for trusts, unit trusts, and NGOs. Unit trusts must issue annual tax certificates or risk being taxed as companies. Life insurance proceeds are generally excluded from assessable income. • Cash Transaction Limits: Cash payments of Rs. 500,000 or more are non-deductible. Approved digital/bank methods must be used. • Administration & Enforcement: The Statement of Estimated Tax (SET) is abolished; quarterly tax is now based on the previous year's liability. The use of Taxpayer Identification Numbers (TIN) is expanded to bank accounts, vehicle/land registration, and share transfers. • Penalties & Relief: Failure to comply can lead to fines up to Rs. 400,000 and/or 6 months imprisonment. A late-payment interest waiver is available for liabilities up to 2024/25 if the principal is paid by 2 December 2026.

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### UK Prime Minister Keir Starmer Resigns 📈

Resignation Announcement: British Prime Minister and Labour Party leader Keir Starmer has officially announced his resignation following internal party pressure and declining public support. Political Context: The resignation occurs less than two years after Labour's landslide victory in the 2024 UK General Election. Leadership Transition: The Labour Party is initiating the process to select a new leader. Former Greater Manchester Mayor Andy Burnham is widely considered a leading contender for the succession. National Stability: This development marks a period of significant political turnover in the UK, which has now seen six Prime Ministers in six years.

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⚖️ Supreme Court to Hear Appeal on Minister’s Eligibility

• Case Overview: The Supreme Court has granted leave to appeal a previous Court of Appeal ruling that dismissed a challenge against the parliamentary eligibility of Public Security Minister Ananda Wijepala. • The Dispute: Petitioner Renuka Dushyantha Perera alleges that the Minister was ineligible to serve as an MP while simultaneously holding the position of Chief of Staff to the President, claiming this role categorized him as a public officer. • Legal Status: The Court of Appeal had previously dismissed the case on 7 May 2025 due to a failure to name necessary parties as respondents. A three-judge bench of the Supreme Court has now revived the matter, scheduling the hearing for argument on 3 November. • Key Objective: The petitioner seeks a formal declaration that the Minister is disqualified from sitting or voting in Parliament and holding office.

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Apparel Sector Challenges: President Pledges Swift Policy & Infrastructure Solutions 📈

President Anura Kumara Dissanayake chaired a high-level discussion with leading investors and officials to strengthen Sri Lanka’s apparel & textiles sector, focusing on boosting dollar earnings and executing the Export Development Board’s (EDB) new export strategy. • Infrastructure & Investment: The government proposed a "Plug and Play" mechanism providing ready infrastructure and factory buildings. Investors were encouraged to expand operations into rural areas to boost the national export economy and regional employment. • Taxation & Supplier Relief: Special attention was given to VAT-related challenges faced by local raw material suppliers. The President requested prompt business proposals for alternative relief measures. • Trade & Policy Modernization: - National Single Window for Trade to be operational by late July 2026. - National Single Window for Investment slated for completion by year-end. - Discussions held on expanding free trade agreements and increasing quotas to broaden market access. • Governance & Land Reforms: Legal reforms are underway to resolve investor land issues and maintain policy stability. To replace the PTA, a new law targeting organized crime and preventing illicit capital flight will be introduced. • Operational Continuity: Responding to investor requests, the President approved a monthly institutional forum to consistently resolve operational bottlenecks.

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⚖️ The Challenge of Political Accountability in Sri Lanka

• Systemic Judicial Failures: The case of former President Gotabaya Rajapaksa highlights a broader crisis in Sri Lanka's post-independence state. Despite widespread public awareness of allegations involving enforced disappearances, political violence, and attacks on journalists, meaningful judicial outcomes remain rare for politically powerful actors. • High-Profile Impunity: A primary point of public frustration is the lack of legal resolution in major cases, such as the 2009 assassination of journalist Lasantha Wickrematunge. Despite intense scrutiny and investigative leads across successive administrations, institutional paralysis has prevented definitive judicial conclusions. • Politicization of Justice: Past political transitions, such as the Yahapalana administration, raised public expectations for accountability. However, those processes were ultimately perceived as selective, slowing or stalling based on shifting political calculations and backroom deals. • Renewed Scrutiny: Rajapaksa faces renewed public and political pressure regarding accountability, including his administration's handling of the Easter Sunday attacks investigation. • The Way Forward: Establishing a functioning democratic culture requires shifting away from cycles of temporary public outrage. Ensuring rule of law demands independent, transparent investigations that deliver clear legal outcomes—either proving wrongdoing or unsubstantiated claims—regardless of which political coalition holds executive power.

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⛽ SJB MP Accuses Govt. of Unjustified Fuel Price Hikes Citing Stock Claims

Allegations on Fuel Pricing: Samagi Jana Balawegaya (SJB) MP Mujibur Rahman accused the government of exploiting the Middle East crisis to justify multiple fuel price hikes from March 2026 onwards. He noted that President Anura Kumara Dissanayake had previously assured the public in March that Sri Lanka held sufficient fuel stocks for approximately three months. Pricing Discrepancies: Rahman claimed that fuel imported at lower pre-conflict global rates was sold at higher retail prices. He highlighted a contradiction where the government now refuses to pass on falling global oil prices to consumers, citing that existing stocks were procured at higher rates. Economic and Tax Pressures: The MP stated that sharp fuel price increases since February 28 have triggered a cascading effect, raising transportation and production costs, driving up inflation, and eroding public purchasing power. He alleged that the administration maintains high fuel taxes despite election pledges to remove unfair levies. Lack of Transparency: Rahman criticized the government for failing to properly disclose fuel pricing details under the Right to Information framework and questioned whether controversial pricing commissions still exist. Other Concerns: The opposition MP also criticized delays in Provincial Council elections, called for an independent inquiry into a reported missing US$ 2.5 Mn from the Treasury, and urged non-politicized, expedited investigations into the 2019 Easter Sunday attacks.

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Sustainability, ESG & Corporate Responsibility

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## Jetwing Hotels Showcases Zero-Waste Luxury for Sustainable Gastronomy Day 📈

• Jetwing Hotels hosted 'Elementally Plated', a curated live-plated culinary event at Black Coral, Jetwing Beach, Negombo, to mark Sustainable Gastronomy Day. • The initiative highlights Jetwing’s five-decade commitment to responsible tourism, sustainability, and circular economy thinking within Sri Lanka's vital hospitality and tourism sector. • Key features of the sustainable dining model include: Zero-Waste Focus: Utilizes often-discarded parts of ingredients (e.g., carrot top pesto, dehydrated vegetable trimming "soil", and a salad utilizing gotukola stems instead of leaves). Local Sourcing: Emphasizes Sri Lankan produce, seafood, and ingredients to minimize import reliance, directly supporting local farmers, fisherfolk, and small-scale producers. Circular Practices: Extends sustainable sourcing from the kitchen to the bar's mixology, focusing on minimizing waste and celebrating national biodiversity.

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🤝 Rotary Conference 2026: Empathy Reframed as a Core Humanitarian Competency

Global empathy expert Mimi Nicklin, speaking at the 35th Rotary Sri Lanka and Maldives Conference in Colombo, urged delegates to treat empathy as a measurable data-gathering tool rather than a soft virtue to ensure sustainable community development. • Key Metrics & Global Deficits • Low empathy is directly linked to rising social fragmentation, including casteism, ageism, and urban-rural bias. • Global data reveals a stark "empathy deficit": 52% of people report chronic loneliness, while low workforce engagement leads to a US$ 8.8 Tn global productivity loss. • Conversely, teams with high engagement and empathetic leadership show 21% higher profitability. • Strategic Action Steps for Rotary • Implement active listening as project due diligence by assessing community dignity before designing interventions. • Use curiosity-driven feedback to prevent top-down failures in critical areas like education and disaster response. • Formally measure community feedback loops and embed empathy training within local youth and leadership programs. • National Context & Impact • The framework directly addresses Sri Lanka's post-crisis recovery and Maldives' climate vulnerability, emphasizing that human understanding must match technical capacity. • Sri Lanka's 75 Rotary Clubs have executed over 1,500 national projects valued at over Rs. 2 Bn, with delegates now looking to pilot empathy metrics to improve future project delivery.

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📊 SL’s First National Guidelines on Business and Human Rights Launched

The Human Rights Commission of Sri Lanka (HRCSL) has officially launched the country's first-ever National Guidelines on Business and Human Rights to promote responsible business practices and strengthen institutional capacity. • Key Initiative: Formed under the broader project 'Just Business: Promoting the Adoption of Business and Human Rights in Sri Lanka and the Maldives.' It aims to integrate environmental, social, and governance (ESG) standards across economic sectors. • Partners & Funding: The initiative is co-funded by the European Union and supported by Germany's Max Planck Foundation for International Peace and the Rule of Law (MPF) alongside Sri Lanka's Centre for a Smart Future (CSF). • Scope & Application: The guidelines serve as a trilingual framework (Sinhala, Tamil, and English) targeting the private sector, state-owned enterprises, policymakers, and regulators to foster sustainable, rights-respecting economic development. • Current Status: Based on official launch details, the guidelines are now publicly available for download via the HRCSL website to begin sector-wide implementation.

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Forbes & Walker Tea Brokers & Warehousing Secure Carbon Neutral Certification 📈

• Key Milestone: Forbes and Walker Tea Brokers Ltd. (Sri Lanka’s largest tea broker) and Forbes and Walker Warehousing Ltd. have officially achieved Carbon Neutral Certification. • The Mechanism: The certification was awarded by the Sri Lanka Climate Fund Ltd. after successfully quantifying, verifying, and offsetting greenhouse gas (GHG) emissions via the Forbes and Walker Rooftop Solar Project. • Strategic Context: The move directly aligns with increasingly stringent environmental and sustainability compliance laws in global export markets, particularly the European Union (EU) regulations regarding packaging, waste management, green claims, and recyclability. • Economic & Supply Chain Impact: As a major intermediary in the tea industry, the group's carbon-neutral status helps extend sustainable practices across the supply chain, linking carbon-neutral producers with international buyers and strengthening Sri Lanka's positioning in global supply chains.

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🚢 WISTA Sri Lanka Empowers Women with "Waves of Impact" Event

• Event & Theme: WISTA Sri Lanka hosted its International Women’s Day 2026 celebration, "Waves of Impact," on April 23, 2026, at NH Collection Colombo. Under the theme "Give to Gain," the event focused on collective growth through mentorship and knowledge sharing in maritime, shipping, logistics, and international trade—sectors vital to Sri Lanka's economic diversification. • Key Highlights & Leadership: • Keynote speaker Vera Wickremasinghe shared insights on resilience and leadership. • A panel discussion featured local entrepreneurs Bhagya Sandakelum (Founder, Blue Fish Ceylon Ltd.), who built Sri Lanka's first premium canned fish brand, and Devika Wijesuriya (Founder, Penguin Shipping Enterprises Ltd.), who discussed navigating adversity in the maritime sector. • The session, moderated by Ayesha Abeyratne, highlighted personal growth and the expanding role of female professionals in driving industry innovation and employment. • Industry Support: Established in 2014, WISTA Sri Lanka continues to champion inclusion and leadership. The event was supported by corporate partner South Asia Gateway Terminals (SAGT) alongside gift partners including Nestlé Lanka PLC, Advantis Express, Hemas Consumer Brands, and Regency Teas.

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📈 ILO Calls for Decent Work for Sri Lanka’s 189,000 Domestic Workers

A formalised domestic work sector is critical to improving Sri Lanka's low women's labour force participation by alleviating unpaid care duties, according to the ILO. • Overall Figures: Sri Lanka has approximately 189,000 domestic workers (based on 2024 Labour Force Survey data). The sector is growing rapidly due to an ageing population and high migration rates. • Gender Breakdown: Women make up nearly 43% of the domestic workforce. Among them, 87% work as cleaners, helpers, and direct caregivers, compared to just 9% of men. • Key Challenges: The sector remains highly informal. Most employees work without written contracts, regulated hours, paid leave, or social security, exposing them to financial insecurity and workplace injuries. • Progress & Gaps: While Sri Lanka has not yet ratified the ILO Domestic Workers Convention (No. 189), key initiatives are underway to bridge the gap: - Introduction of a standard employment contract to formalise terms. - Launch of a Complaint Management Application (CMA) to protect migrant domestic workers from exploitation and abuse.

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🎓 Business Tycoon Nahil Wijesuriya Donates Rs. 3 Bn to Trinity College

• Overall Figures: Renowned business tycoon turned philanthropist Nahil Wijesuriya has donated a massive Rs. 3 billion to his alma mater, Trinity College, Kandy. This stands as an extraordinary single private donation toward national education excellence. • Fund Utilization: Trinity College will establish a dedicated fund for the prudent stewardship and sustainable deployment of the Rs. 3 billion. The funds are earmarked to advance educational quality, foster holistic student development, and strengthen the institution's regional standing. • Philanthropic Track Record: This contribution follows a series of high-impact donations by Wijesuriya toward Sri Lanka's healthcare and education sectors, including: Rs. 1 billion to the Little Hearts Project at Lady Ridgeway Hospital. Rs. 600 million to S. Thomas’ College, Mount Lavinia for a state-of-the-art Information Technology building. Rs. 270 million to Bishop’s College for a new A-Level and O-Level building complex.

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⚖️ Sri Lanka Legal Policy: Moving From Fragmented Laws to One Planet Law

• Context: Global Desertification and Drought Day (June 17) highlights that land degradation is a governance and legal failure rather than a purely environmental issue. Nearly 25% of global land is degraded, threatening food security and socio-political stability. • Sri Lanka Impact: As a microcosm of planetary stress, Sri Lanka’s dry zone districts face recurrent drought cycles. This severely impacts agriculture (specifically paddy cultivation), rural livelihoods, and drinking water. Shifting rainfall patterns, upper catchment deforestation, and urban expansion are severely straining the country's historically resilient, traditional tank cascade irrigation systems. • The Problem: Current environmental law is siloed into isolated sectors (climate change, biodiversity, water, agriculture, and land-use planning). Legal systems reactively treat land as an economic input/commodity rather than a climate stabilizer, creating major governance blind spots across ministries. • The Solution: Experts advocate for One Planet Law—an integrated legal framework fusing Carbon Law (legally binding, time-bound emissions reductions) and Blue Planet Law (managing the global water cycle as a planetary commons). • The Takeaway: Modern legal systems must shift from reactive crisis management (like short-term emergency relief) to proactive planetary stewardship. Law must be treated as critical climate infrastructure capable of enforcing watershed protection and aligning agricultural policy with ecological thresholds to keep the planet habitable. _Note: Based on analytical commentary and legal research perspective._

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🌿 Nations Trust Bank Renews Environmental Partnership with WNPS

• Strategic Collaboration: Nations Trust Bank has officially renewed its long-standing partnership with the Wildlife and Nature Protection Society (WNPS) to support its monthly public lecture series. • Core Initiatives: The partnership serves as a key sustainability initiative for the bank, funding free educational lectures by environmental experts. The sessions focus on biodiversity conservation, climate action, environmental research, and environmental stewardship. • Upcoming Event: The next lecture is scheduled for June 18, 2026, at the BMICH. It will feature Dr. Prabath Jayasinghe, Principal Scientist at NARA, who will reveal historic findings from a 30-day scientific survey of Sri Lanka’s Exclusive Economic Zone conducted by the research vessel Dr. Fridtjof Nansen. • National Impact: The ongoing collaboration aims to drive public awareness, educate communities, and strengthen the protection of Sri Lanka’s rich natural heritage and biodiversity.

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Tokyo Cement Marks World Environment Day with 100,000 Mangroves planted along Sri Lanka's Coastline 🌿

• Milestone Achievement: The Tokyo Cement Mangrove Conservation Project has reached a total of 100,000 mangrove saplings planted along the coastline, marking its contribution on World Environment Day. • Project Scope & Capacity: Initiated in 2012 at China Bay, Trincomalee, the project started by restoring a 20-acre site with 17,000 saplings. Today, the on-premise nursery houses 10,000 saplings at a time and produces approximately 7,500 saplings annually across 8 native species. • National & Economic Impact: The initiative directly supports Sri Lanka's climate resilience and coastal livelihoods by protecting shorelines from erosion and storm surges. It secures critical breeding grounds for local fisheries and boosts the tourism sector by preserving regional biodiversity. • Collaboration: The project is a long-standing partnership between Tokyo Cement Group, the Sri Lanka Navy, local fishing communities, and conservation groups, expanding its reach across the eastern, northern, and northwestern coastal regions. • Broader Ecosystem: This reforestation program runs alongside Tokyo Cement’s other ecological initiatives, which include coral reef rehabilitation projects to restore Sri Lanka's marine ecosystems.

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📈 Sri Lanka: Treating Climate Disruption as a Permanent Economic Reality

Discussions among policymakers regarding the impending El Niño highlight a crucial shift: climate threats are no longer isolated incidents but an enduring condition impacting the national economy. • Strategic Pivot: Moving beyond short-term relief, Sri Lanka must integrate disaster resilience into central economic planning, recognizing that extreme weather events now occur with greater frequency and intensity. • Sectoral Resilience: Policy must prioritize safeguarding key sectors like Agriculture (climate-resilient crops, water management), Infrastructure (disaster-resistant design), and Tourism, all of which face significant disruption from volatile weather patterns. • Fiscal Impact: Repeated post-disaster rebuilding is significantly costlier than proactive investment. Climate instability directly threatens exports and national economic capacity, necessitating a shift toward long-term preparedness strategies. • Private Sector Integration: Businesses and financial institutions are encouraged to pivot from post-recovery financing to supporting long-term climate adaptation, ensuring continuity in economic activity. The emerging consensus on climate risk must now transition into a sustained national strategy, recognizing that climate change has fundamentally altered the environment in which the country develops.

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📈 Sri Lanka’s Path to Climate Resilience & Sustainable Energy

Following the devastation of Cyclone Ditwah—which impacted an estimated 2.3 million people—and ongoing global energy volatility due to Middle East conflicts, Sri Lanka faces an urgent need to transition toward sustainability and economic resilience. Key national priorities and upcoming strategic initiatives include: • Climate & Environment: Rising vehicle emissions, aging public transport, and plastic burning are severely degrading air quality in Colombo and causing major public health concerns. Rebuilding efforts demand a proactive pursuit of the 2030 Agenda and 2050 Net-Zero goals. • Energy Security: Global energy shocks underscore the need to accelerate the transition to renewable energy solutions. Rapid onboarding of cleaner transport options, including electric vehicles (EVs), is critical to ensuring national fuel security. • Inclusive Development: Unlocking economic growth requires driving greater workforce participation, particularly among women and young people, to boost household incomes and foster national prosperity. • Global Action: To address these issues, the Friends of Sri Lanka Association is hosting a sustainable development forum at the Sri Lankan High Commission in London on June 17, 2026. The keynote will focus on expanding solar power and sustainable development in remote, rural parts of the country.

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Economic News

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📈 Sri Lanka Exports Surpass US$ 7.3 Bn in Jan–May 2026

Sri Lanka’s external sector showed strong recovery momentum during the first five months of 2026, driven by robust broad-based growth in both merchandise and services sectors based on provisional data. • Overall Performance Total cumulative exports (Jan–May 2026): US$ 7,393.39 Mn (+7.56% YoY). Merchandise exports: US$ 5,758.44 Mn (+7.63% YoY). Services exports: US$ 1,634.95 Mn (+7.31% YoY). May 2026 Total: US$ 1,570.64 Mn, reflecting a strong 18.34% YoY surge. • Key Sector Growth (Jan–May 2026) Electrical & Electronic Components: Surged 51.79% to US$ 253.88 Mn. Food & Beverages: Grew 26.63% to US$ 293.16 Mn (processed food up 49.32%). ICT/BPM: Estimated at US$ 751.53 Mn (+21.74%), vital for high-skilled employment and diversification. Coconut-based Products: Rose 20.45% to US$ 515.17 Mn (Activated Carbon up 45.53%). Seafood (+19.2% to US$ 105.49 Mn) and Rubber-based products (+4.84% to US$ 404.7 Mn). • Sectors Under Pressure (Jan–May 2026) Apparel & Textiles: Declined 4.84% to US$ 2,033.39 Mn due to weak US and EU demand, despite a May rebound (+6.66% to US$ 414.72 Mn). Tea: Dropped 4.62% to US$ 581.91 Mn, dragged down by a 42.32% contraction in Middle Eastern shipments. Spices & Essential Oils: Slipped 3.28% to US$ 167.95 Mn (Pepper fell 45.56%). • Top Markets & Regions USA: Remaining the largest market, up 10.87% in May (US$ 240.23 Mn) and +0.28% cumulatively (US$ 1,185.99 Mn). India: Second-largest market; cumulative exports rose 7.95% to US$ 442.33 Mn. Turkey: Exceptional cumulative growth of 106.28% YoY, powered by a 150.17% surge in tea demand. European Union: Accounted for 25.5% of merchandise exports, expanding 13.36% cumulatively.

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Govt. Retreats on Planned VAT Threshold Cut 🛑

• Economic Policy Change: The Sri Lankan government has reportedly rolled back its planned reduction of the Value Added Tax (VAT) threshold. • Data Status Note: Detailed fiscal figures, specific threshold limits, and exact implementation timelines are currently unavailable due to a service error from the primary source (provisional report based on developing news). • National Context: The decision directly impacts the country's taxation policy, local business operations, and revenue generation targets, which are critical elements of Sri Lanka's ongoing macroeconomic stabilization efforts.

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📈 Looming Rupee Depreciation Risk in Late August

A new wave of currency depreciation could hit Sri Lanka by late August 2026 due to an upcoming policy shift driven by IMF continuous performance criteria, according to recent analysis. • The Core Catalyst: On May 15, 2026, the Government imposed a 50% surcharge on vehicle import duties to curb non-essential imports. However, following IMF pressure regarding strict anti-import restriction criteria, the Government committed to lifting this surcharge after a three-month waiver period ending mid-August. • The Market Impact: Importers and buyers have postponed purchases for three months. Removing the surcharge in August is expected to unleash massive, accumulated demand, causing a sudden spike in vehicle imports and heavily straining foreign exchange reserves. • Credit & Volatility Risks: Sri Lanka’s private sector credit growth has been highly excessive, hovering above 20% YoY in Q1 2026. This significantly overshoots the IMF’s recommended stabilization benchmark of keeping credit growth below 10% for 2025–2027. • Economic Outlook: While a floating exchange rate theoretically acts as an automatic stabilizer, high credit growth means the policy shift could trigger severe exchange rate volatility, heavily impacting exporters, importers, and public cost of living. • Strategic Recommendation: Analysts urge the Government and the IMF to extend the import restriction waiver until monetary authorities successfully rein in rapid private credit growth.

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🛢️ Global Oil Easing Offers Sri Lanka Critical Breathing Space

Recent de-escalation of U.S.-Iran-Israel tensions has caused global crude oil prices to drop from recent peaks, granting Sri Lanka a timely external tailwind during its fragile post-crisis recovery. • Overall Impact: As an import-dependent nation purchasing nearly all its petroleum, lower oil prices reduce Sri Lanka's fuel import bill, lower foreign exchange outflows, and ease pressure on the rupee. • Macroeconomic Relief: The decline directly supports the balance of payments and provides an opportunity to rebuild foreign exchange reserves, which is vital for long-term stability following the 2022 crisis. It also helps contain imported inflation. • Sector Breakdowns: Manufacturing & Agriculture: Benefit from lowered production and distribution/logistics costs. Tourism, Aviation & Logistics: Enjoy improved operating margins due to reduced transport expenses. Electricity: Offers temporary relief for thermal power generation costs during low hydropower cycles, though underlying structural inefficiencies remain. • Domestic Pricing Caveat: Benefits may take time to filter down to consumers due to complex domestic energy pricing structures, exchange rates, taxes, and state-owned enterprise financials. • Future Outlook: Experts warn that oil markets remain highly volatile. True economic security requires using this temporary geopolitical dividend to accelerate renewable energy development (solar/wind) and expand/diversify export earnings before the next external shock.

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📈 Sri Lanka’s Economic Reality Check: Beyond Stabilisation

Following the 2022 crisis, Sri Lanka has achieved remarkable macroeconomic stability. However, experts warn that this is not yet a full recovery, as deep-seated structural issues hinder long-term growth. • Key Economic Challenges • Poverty remains above 20%, with only one-third of youth expected to secure formal employment. • FDI inflows remain stuck at ~1% of GDP, significantly trailing regional peers. • Exports have declined from 40% to 20% of GDP over two decades. • Productivity gaps persist in agriculture and construction, while rigid labor markets continue to exclude women. • Strategic Path Forward • The World Bank Group (WBG) has launched a 2026-2030 Partnership Framework, pledging US$ 2 Bn in financing and seeking to mobilize US$ 1.2 Bn in private capital. • Focus areas include: ports & logistics, energy, tourism, and agribusiness. • Business leaders emphasize that ease of doing business, predictability, and economy-wide reforms are more critical for growth than sector-specific incentives. • Industrial Reform • The Industrial Development Board (IDB) is undergoing its first legal overhaul in 57 years. • The Ministry of Industries has initiated a six-month drive to rewrite SME policy and restructure institutions to better support enterprise scaling and strategic management capabilities. The consensus remains clear: sustained growth requires moving beyond crisis management to fixing structural inefficiencies in investment, trade, and productivity.

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📈 Sri Lanka's National Inflation Surpasses 5% in May 2026

Sri Lanka’s Year-on-Year (YoY) headline inflation, measured by the National Consumer Price Index (NCPI), rose to 5.4% in May 2026, up from 4.7% recorded in April 2026, according to the Department of Census and Statistics. This follows a similar trend where Colombo consumer inflation also crossed the 5% threshold in April. • Overall Inflation: YoY headline inflation increased to 5.4% in May 2026 from 4.7% in April 2026. • Food Sector: Food inflation saw a slight increase, moving up to 1.5% in May 2026 compared to 1.1% in April 2026. • Non-Food Sector: The primary driver for the overall inflation spike was the non-food category, which accelerated to 8.6% in May 2026 from 7.8% in the previous month.

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📈 Sri Lanka Economic Outlook: Challenges Persist Amid Global & Domestic Shifts

• Overall Growth & Outlook: Based on World Bank and IMF data, Sri Lanka's economy stabilized with a 5.0% growth rate in 2025, driven by higher exports, fiscal discipline, and foreign remittances. However, due to external global factors, growth is projected to decelerate to 3.1% in 2026. • Global Vulnerabilities: The domestic economy faces headwinds from a projected Global North slowdown, high global inflation, and supply shocks. Key external risks include the fallout of US trade policies (IMF projects global growth at 3.3% for 2026 and 3.2% in 2027), ongoing geopolitical conflicts, and climate crises like the 2025 Cyclone Ditwah. • Fiscal & Economic Reforms: The NPP government continues the US$ 3.00 Bn IMF Extended Fund Facility program. While the economy has stabilized, rising inequality remains an issue, prompting calls to shift the tax burden toward affluent classes to ease the impact on low- and middle-income groups. • Governance & Anti-Corruption: The government has made progress in clean governance, with Sri Lanka’s Transparency International Corruption Perceptions Index score improving from 32 in 2024 to 35 in 2025. However, some domestic setbacks remain, including delayed actions on specific import misconduct allegations and unfulfilled ethnic reconciliation promises.

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📈 IMF Team Heading to Sri Lanka for Economic Reform Review

An International Monetary Fund (IMF) country team is scheduled for a staff visit to Sri Lanka from June 24 to 30 to evaluate the nation's ongoing economic recovery efforts. • Mission Timeline: The week-long visit, announced by IMF Mission Chief Evan Papageorgiou, will run for seven days to review progress on critical structural adjustments. • Key Objectives: The delegation will take stock of recent macroeconomic developments and conduct formal discussions regarding the performance of Sri Lanka’s stringent economic reform program. • Stakeholder Engagement: The IMF team plans to engage directly with government authorities alongside a diverse group of national stakeholders to assess the implementation status of agreed-upon policy targets.

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📈 Ravi Urges Review of CBSL Framework, Calls for 2-3% Inflation Target

Opposition MP Ravi Karunanayake has urged the government to prepare for the October 2026 statutory review of the Monetary Policy Framework Agreement to strengthen currency stability and protect savings. • Proposed Inflation Target: Urged a reduction in the medium-term headline inflation target to 2-3%, down from the current 5% set under the CBSL Act No. 16 of 2023. • Macroeconomic Concerns: Warned of a potential stagflationary environment where economic growth remains weak, private sector investment is subdued, and household purchasing power faces pressure despite the lack of strong aggregate demand. • Policy Shift Needed: Argued that Sri Lanka's inflation over the past decade has been driven by supply-side and imported factors rather than demand, meaning excessive reliance on interest rate adjustments alone is inadequate. • External Sector Focus: Emphasized that historical crises were rooted in balance-of-payments issues rather than conventional inflation. He recommended expanding CBSL's focus to include foreign exchange reserves accumulation, domestic savings, capital formation, and export competitiveness. • Regional Benchmarks: Cited lower targets in regional economies, such as India (4%), Indonesia (2.5%), Thailand (1-3%), and Malaysia (2-3%), alongside advanced economies targeting 2% to support currency confidence.

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📈 2026 Budget Project Progress Under Secretariat Review Amid Delays

A high-level progress review of 2026 Budget projects and policy initiatives was conducted at the Presidential Secretariat to assess implementation bottlenecks and accelerate delivery. • Current Status & Delays: The review, chaired by Secretary to the President Dr. Nandika Sanath Kumanayake, focused heavily on addressing execution challenges and overcoming ongoing delays across ministry-level projects. • Sector Breakdown: Project evaluations spanned across a broad range of critical sectors, explicitly reviewing ministries handling finance, planning & economic development, digital economy, agriculture, livestock, land & irrigation, transport, highways & urban development, ports & civil aviation, and trade, commerce & food security. • Key Directives: Officials emphasized that closer inter-institutional coordination is mandatory to resolve outstanding bottlenecks. Expediting project timelines was highlighted as a shared responsibility to ensure public benefits from the 2026 Budget are delivered on schedule, as part of national efforts to boost public sector efficiency and implementation capacity.

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NPP Economic Policy Shifts Toward Pragmatic Orthodoxy

Senior Presidential Adviser on Economic Affairs Duminda Hulangamuwa recently highlighted a notable shift in the National People’s Power (NPP) administration—moving from its historic protest rhetoric toward established economic orthodoxy and practical governance. 📈 Overall Outlook & Strategy • Policy Continuity: Instead of pursuing radical changes, President Anura Kumara Dissanayake chose to continue the IMF-supported post-2022 stabilization framework. • Core Focus: The current strategy prioritizes fiscal discipline and economic stability before structural wealth redistribution or major state-led industrial expansion. • Private-Led Growth: The government framework emphasizes that the state should create favorable conditions while the private sector spearheads growth via public-private partnerships and the monetization of under-utilized assets. 🌾 Sector & Industry Focus • Key Sectors: The state plans to target core competitive strengths including ports & logistics, tourism, apparel, and specialized, higher-value manufacturing. • Tourism: Focus remains on reviving the industry, though a strategic diversification is needed to attract higher-spending travelers. • SOEs & Debt: Addressing systemic structural weaknesses in state-owned enterprises, including exploring strategic investments to manage liabilities like SriLankan Airlines inheritance debt. 💼 Investment & Structural Pipeline • Pipeline Estimates: An initial investment pipeline of US$ 800 Mn to US$ 1 Bn is discussed, though historical trends require distinguishing approved projects from final implementation. • Investment Drivers: A focus on clean, corruption-free governance and stable institutions is expected to invite foreign investment. However, critical structural vulnerabilities like labor productivity, energy costs, and digital cyber resilience must still be resolved. _Note: This analysis evaluates broader administrative targets and governance shifts based on published interview commentary._

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📈 Customs Modernization Fast-Tracks Sri Lanka’s USD 36 Bn Export Target

A high-level meeting chaired by Secretary to the President Dr. Nandika Sanath Kumanayake outlined critical reforms for Sri Lanka Customs to support the National Export Development Plan (NEDP) 2026–2030, aiming for USD 36 billion in export revenue by 2030. • Key Reforms & Modernization Initiatives: Instructed Sri Lanka Customs to upgrade the capacity and facilities of the Export Facilitation Centre. Digital systems will be introduced to expedite document processing, reducing time and costs, alongside a risk-based assessment mechanism to fast-track low-risk exporters. • SME & Regional Growth: Plans include reviewing the Temporary Import for Export Processing (TIEP) scheme to support non-exporting small and medium enterprises (SMEs). To decentralize operations, attention is being given to establishing a new Customs Export Centre in Jaffna. • E-Commerce & Sector Support: Discussions focused on removing trade barriers for e-commerce platforms, with joint streamlining efforts planned alongside the Department of Posts to boost digital trade channels. • Monitoring & Execution: Sri Lanka Customs, the Sri Lanka Export Development Board (EDB), and the Revenue Administration, Reforms and Modernization Bureau will hold monthly review meetings to monitor progress and address ongoing exporter challenges.

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Real Estate

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

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

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📈 Home Lands Expands Footprint in Port City Colombo

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

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

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

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📈 NovaNest Properties Launches 234-Unit Rainbow Apartments in Ratmalana

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

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

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

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

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

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🏗️ Prime Group's Bhoomi Realty Breaks Ground on OAZI in Kaduwela

Bhoomi Realty Holdings, a member of Prime Group, has officially commenced construction on its flagship residential development, OAZI, located on the New Bypass Road in the heart of Kaduwela. • Project Scope: The real estate development comprises a total of 351 contemporary apartment units. It is positioned as Kaduwela's highest, safest, and largest apartment project, featuring Sri Lanka’s largest rooftop lifestyle destination anchored by a 150-foot infinity swimming pool and over 20 premium amenities. • Market Response: Demonstrating strong investor confidence in Prime Group's track record, the project achieved an overwhelming pre-sales milestone with over 100 apartment units sold prior to the groundbreaking. • Strategic Infrastructure: The development is uniquely situated on a new strategic bypass road developed by Bhoomi Realty Holdings. This infrastructure project connects the Low Level Road with the new Kandy Road, significantly enhancing regional connectivity to Colombo and the Outer Circular Expressway. • Investment Value: Tailored for the construction & real estate sector's current demand, the project is positioned as a high-yield investment opportunity, offering attractive pricing alongside flexible payment options to boost financial accessibility for homeowners and investors.

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📈 Nippon Office Building Unveiled in Colombo 07

The Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust opens the Rs. 3 billion Nippon Office Building at Ward Place today, marking a milestone in Sri Lanka's commercial property sector. • Project Scope: A Rs. 3 Bn landmark development featuring 3 basement levels, a ground floor, and 10 upper floors. Piling began in June 2022, with main construction starting in January 2024. • Design & Sustainability: Designed by Design Consortium International Ltd. (DCIL), the complex incorporates a hybrid reinforced concrete and structural steel system. It features high-performance energy-efficient glazing and advanced systems to minimize long-term energy consumption. • Economic Context: Represents continuing foreign-cultural trust investments in premium urban infrastructure and modern workplace design in Colombo. • Key Dignitaries: The opening ceremony will be attended by The Nippon Foundation Chairman Yohei Sasakawa, Japan's Ambassador Akio Isomata, and Prime Minister Dr. Harini Amarasuriya.

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📈 50% of Port City Twin Tower Units Sold Ahead of Official Launch

Sri Lankan developer Home Lands has pre-sold over 50% of its upcoming Central Park Boulevard Port City Colombo development ahead of its official launch this week, signaling robust investor confidence. • Overall Figures & Investment: • Total project value exceeds US$ 300 Mn, with Home Lands directly investing US$ 150 Mn. • Described as the largest real estate investment undertaken by a single Sri Lankan developer. • Over 320 of the 640+ residential units have already been secured by buyers. • Project Specifications: • A twin-tower development rising 37 levels within Port City Colombo’s Central Park District. • Designed to attract critical foreign currency inflows via overseas investors and foreign buyers, supporting national economic recovery. • Launch Timeline & Pipeline: • Official "Grand Launch Weekend" runs from June 12–14 at Cinnamon Life (City of Dreams), featuring regional business leaders and Bollywood personalities. • A dedicated sales gallery opens on June 15. • Home Lands currently has over 2,200 units under construction across 10 residential developments island-wide, with 500 units due for delivery within six months.

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Prime & Melwa Unveil Prime Marina Sales Suite at Port City Colombo 📈

Prime Group and Melwa have launched the Prime Marina Sales Suite at Port City Colombo, positioning the upcoming development as a premier landmark address in South Asia. • Strategic Location: The project is situated in the Marina precinct of Port City Colombo, located at the convergence point of the waterfront bridge, the Indian Ocean, and the marina. The property commands unobstructed water views on two sides. • Project Scale & Features: The development will feature landmark towers consisting of 1, 2, 3, and 4-bedroom apartments alongside exclusive penthouses. • International Collaboration: Designed to meet global benchmarks, the project integrates expertise from renowned international firms: • Architectural design by P&T Singapore. • Interior environments curated by Index Design Pte Ltd (Singapore). • Landscape architecture managed by Grant Associates (UK). • Economic Context: This high-end real estate development represents a major collaboration between two prominent Sri Lankan conglomerates, aiming to establish a new benchmark for regional waterfront living as Port City Colombo develops.

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📈 Colombo Port City: New Milestone in FDI & Economic Growth

The Colombo Port City Special Economic Zone (SEZ) has reached a key development milestone following Cabinet approval for 77 Businesses of Strategic Importance (BSIs). • Investment & Financials: Total land and development value is estimated at Rs. 125 Bn, with projected foreign exchange inflows of approximately US$ 626 Mn over the next five years (US$ 262 Mn from Primary BSIs and US$ 364 Mn from Secondary BSIs). • Employment & Impact: The initiative is set to create over 10,000 direct jobs, bolstering the national workforce. • Key Sectors: Approved BSIs span maritime & logistics, IT & digital economy, tourism & leisure, and real estate development. • Strategic Development: Three primary entities (Prime Melwa, Marina Hotel Holdings, and Home Lands) are leading major residential and mixed-use projects. • Regulatory Edge: The Colombo Port City Economic Commission (Amendment) Act, No. 1 of 2026, has streamlined the "Single Window" approval process, including rapid 7-day registration and 5-day work visa processing to attract global investors. With a long-term development value estimated at US$ 15 Bn, Port City is positioning itself as a primary gateway for high-value, service-driven investment in South Asia.

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🏢 Home Lands Partners with Mahela Jayawardene Ahead of Colombo Port City Launch

• Strategic Partnership: Home Lands Group has appointed legendary former Sri Lankan cricket captain Mahela Jayawardene as its official Brand Ambassador to elevate Sri Lankan real estate onto the global stage. • Major Project Launch: The announcement precedes the Grand Launch Weekend of Central Park Boulevard Port City Colombo, which is positioned as the largest real estate launch in Sri Lanka. • Event Details: The high-profile launch event is scheduled to take place from 12 to 14 June (2026) at Cinnamon Life Colombo. • Economic Impact: The partnership leverages Jayawardene’s international stature and credibility to showcase the potential of Sri Lanka's premium property sector, driving brand trust and alignment with major urban development and construction milestones in Port City Colombo.

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Startups & Entrepreneurship

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🚕 HelaGo Surpasses 1 Mn Kilometres in Just Five Months

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

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

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

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

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

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📈 Navigating Bank Financing for Sri Lankan SMEs

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

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📈 Union Bank Launches Phase 3 of National Entrepreneurship Development Program

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

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🤝 National SME Revival Program Launched to Boost Sri Lankan MSMEs

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

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

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

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📈 Book Review: 'Made in Nepal' by Billionaire Binod Chaudhary

A newly published review of 'Made in Nepal' (2025) offers an insider look into the memoir of Binod Chaudhary, Chairman of CG Corp Global and Nepal’s sole Forbes billionaire, highlighting the realities of building a multinational from an emerging market. • Key Highlights & Business Scale: The memoir details the transformation of a modest family trading business into CG Corp Global, a multinational conglomerate famed for the Wai Wai instant noodle brand. The group has since diversified deeply into hospitality, finance, and infrastructure. • Market & Economic Context: Chaudhary outlines the immense challenges of operating in volatile emerging economies, navigating Nepal’s periods of intense political instability, the Maoist insurgency, shifting government policies, and severe logistical hurdles in a mountainous terrain. • Key Takeaways for Resilience: The book acts as a case study for business operations during national crises, including natural disasters, economic disruptions, and the global pandemic. It challenges international investment biases by proving that globally competitive enterprises can successfully emerge from overlooked regions. _Note: The review is authored by a prominent Sri Lankan corporate figure, the current Chairman of Trinity Steel Ltd and former Member of the Monetary Board of Sri Lanka._

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📈 CCWE Fashion Week & International Summit 2026 to Debut in July

The Ceylon Chamber of Women Entrepreneurs (CCWE), in partnership with Hatton National Bank (HNB) as Title Sponsor, will host South Asia’s first fashion week dedicated exclusively to women entrepreneurs alongside an international summit from July 16–19, 2026, at Cinnamon Life, City of Dreams. • Overall Participation: Over 400 women entrepreneurs from all nine provinces of Sri Lanka, alongside international models, designers, and regional stakeholders, are expected to attend. The event aims to boost financial inclusion, digital transformation, and export link opportunities. • Program Breakdown: • Day 1: Inaugural session focusing on networking, ecosystem engagement, and showcasing multi-sector women-led enterprises. • Day 2: International Summit and South Asian Women Leaders Awards 2026, addressing trade barriers and access to finance. • Day 3: Export readiness, branding, and digital skills training sessions supported by United Nations regional agencies (Knowledge Partner: UN ESCAP-SSWA). • Day 4: Grand Finale fashion showcase and a South Asian Trade Show focused on regional market access. • National & Regional Impact: CCWE represents nearly 10,000 entrepreneurs island-wide. The initiative aims to transition grassroots talent into commercial enterprise. Title sponsor HNB highlights that it serves nearly 250,000 SME and micro-enterprises across Sri Lanka, with approximately 40% currently led by women.

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📈 nVentures & TiE Colombo Bridge Mentorship Gap via "Founder’s Table"

nVentures and TiE Colombo have concluded the first cohort of "Founder’s Table," an initiative providing structured, one-on-one mentorship by matching high-potential startup founders with experienced business leaders in Sri Lanka. • Key Objective: The initiative addresses a critical barrier for first-generation Sri Lankan entrepreneurs: a lack of access to established professional networks, strategic guidance, and industry-specific expertise. • Sector Focus & Impact: Mentorship conversations centered on long-term strategy, finance, and go-to-market planning, moving founders beyond basic product development. Startups like Talvin AI and Cecrafto reported immediate clarity and early course-correction. • Ecosystem Growth: The program leverages Sri Lanka's "net-giving" business culture and TiE’s global network to connect local ICT/BPM and tech-driven entrepreneurs with international founders and investors, aiming to scale domestic startups into globally competitive companies.

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Industry & Sector News

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📈 EDB Addresses Challenges in Coconut Coir & Fibre Export Sector

Sri Lanka’s coconut coir and fibre industry faces critical supply-side constraints, as raw material shortages threaten production capacity and rising costs. Despite these hurdles, the sector remains a vital contributor to national export revenue. • 2025 Performance: Total export value reached US$ 294 Mn, marking a strong 22.5% YoY growth. • Core Challenges: Severe raw material shortages are driving up production costs and impacting the industry's ability to meet international delivery timelines. • Strategic Intervention: The EDB, in collaboration with the Coconut Cultivation Board and industry associations, is formalizing short- and long-term measures to: • Boost raw material availability. • Streamline the fiber supply chain. • Implement policy support to safeguard international market commitments. The EDB continues to facilitate multi-stakeholder dialogue to ensure the operational stability of this essential export segment.

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📈 Ceylon Tea Exports: May Rebound Amid YTD Challenges

Sri Lanka’s tea sector saw a monthly recovery, though cumulative figures for 2026 remain pressured. • Monthly Performance: May exports rose 7.5% YoY to 23.51 Mn/Kgs. • Cumulative Volumes: Jan-May 2026 exports totaled 101.85 Mn/Kgs, a decline of 1.43 Mn/Kgs compared to the same period in 2025. • Pricing Trends: While average FOB values in LKR rose to Rs. 1,797.58/kg for the YTD period, dollar-denominated prices fell to $ 5.72/kg (from $ 5.91/kg), reflecting international market pressures. Top Export Destinations (Jan-May 2026): • Türkiye: 14.95 Mn/Kgs (+159% YoY), now the leading market. • Iraq: 11.82 Mn/Kgs (-18% YoY). • Russia: 9.83 Mn/Kgs (+8% YoY). • Azerbaijan: 5.36 Mn/Kgs (+69% YoY). • China: 4.04 Mn/Kgs (-4% YoY). Note: Despite growth in May, the sector faces headwinds with declining volumes in most major segments and significant volatility in traditional markets like Libya (-60%).

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📈 China Unveils World’s First ‘Dual-Core’ Quantum Computer

China has launched "Hanyuan-2," a revolutionary quantum computing system featuring a dual-core architecture designed to enhance scalability and stability. • Technical Innovation: Developed by CAS Cold Atom Technology, the system pairs two independent neutral-atom arrays (totaling 200 qubits) in a single processor, allowing for parallel processing or error-correction configurations. • Enhanced Stability: The design addresses critical industry bottlenecks such as qubit interference and "noise," significantly improving error correction and coherence times compared to traditional single-core systems. • Efficiency Gains: Unlike superconducting quantum computers requiring massive cryogenic cooling, this rack-mounted unit operates with power consumption below 7kW and functions in standard environments. • Industry Implications: By utilizing 500+ optical tweezers arrays and achieving a qubit lifetime of 100 seconds, this technology offers a more modular and energy-efficient path toward large-scale quantum hardware. While this advancement focuses on global quantum hardware, it highlights the shift toward more accessible, lower-energy computing solutions relevant to the future of high-tech infrastructure and ICT/BPM research.

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Global Air Industry Profits and Margins to Shrink in 2026 📈

The global air transport industry faces tight squeeze in profitability amid geopolitical disruption and record jet fuel prices, according to latest IATA data. • Overall Figures: Net profit forecast halved to US$ 23 Bn (previously US$ 45 Bn) on total projected revenues of US$ 1.17 T. The industry net margin is squeezed to just 2%. • Operational Metrics: Total passengers expected to top 5.1 Bn with record-high load factors at 84%. However, net profit per departing passenger will drop drastically to US$ 4.50 in 2026 from US$ 9.10 in 2025. • Cost Headwinds: Expenses are set to spiral up by 13.1%, outpacing a 9.5% revenue growth. Fuel costs are leading the surge, projected to hit US$ 351 Bn and accounting for 31.4% of total airline operating expenses. _Note: Broad operational updates based on latest provisional data released by IATA._

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✈️ Global Air Travel Demand to Slow to 2.1% in 2026: IATA

Global air passenger demand will expand at a slower pace in 2026 due to Middle East hostilities, an energy shock, and rising oil prices. Global GDP growth is expected to slow to ~2.5% with inflation rising to 5%. • Overall Figures: Global Revenue Passenger Kilometres (RPK) forecast to grow by just 2.1% YoY. • Asia Pacific: Expected to grow by 5.1%, becoming the largest contributor to global traffic growth by accounting for more than half of the total gain. This regional growth is highly relevant to Sri Lanka's tourism and hospitality sectors, supporting connectivity and arrivals despite global headwinds. • Middle East & Europe: Middle East RPK projected to sharply contract by 11.4% due to airspace limitations. Europe is forecast to grow by 2.8%, partially benefiting from rerouted Middle Eastern long-haul traffic. • Other Regions: Africa leads growth at 10.0% (from a low absolute level), Latin America is projected to grow by 5.0%, and North America is limited to 0.8% growth due to a slowing US economy.

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📈 Sri Lanka Tourism Earnings Slip Despite Record May Arrivals

Based on provisional data from the Central Bank of Sri Lanka (CBSL), the tourism sector faces challenges in converting record visitor volume into higher revenue growth. • Overall Figures: May 2026 earnings fell 5.13% YoY to US$ 155.7 Mn (down from US$ 164.1 Mn in May 2025), and slipped marginally from US$ 157.1 Mn in April 2026. • Arrivals vs. Revenue Mismatch: The revenue drop occurred despite a record May arrival surge of 10% YoY, bringing in 145,745 visitors. • Year-to-Date (YTD) Trend: Cumulative earnings for the first five months of 2026 fell 12% YoY to US$ 1.36 Bn, highlighting persistent pressure on average per-capita spending. • Measurement Changes: The decline reflects a recent methodology revision by the SLTDA, which lowered estimated average daily tourist expenditure from US$ 172 to US$ 148 based on scientific survey data. • Historical Context & Targets: In 2025, the sector generated US$ 3.22 Bn (up just 1.6% YoY) despite a 15% increase in arrivals (2.36 Mn visitors). Analysts stress the need for value-added offerings to increase the length of stay and visitor spending to meet the government's 2026 targets of 3 Mn tourists and US$ 4 Bn in earnings.

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📈 Powering a Safer Solar Future: Sri Lanka Addresses Renewable Energy Risks

Sri Lanka’s rapid transition toward renewable energy has led to a significant surge in rooftop solar PV and Battery Energy Storage Systems (BESS). However, the Institution of Engineers, Sri Lanka (IESL) warns that technical safety must keep pace with this expansion to ensure long-term sustainability. • Key Technical Risks: Unlike conventional AC systems, direct current (DC) solar installations carry prolonged arc fault risks, which can cause overheating and electrical fires due to poor workmanship or damaged cables. For BESS, "thermal runaway" (uncontrollable temperature spikes) remains a critical safety concern requiring robust battery management and fire suppression. • Regulatory & Quality Challenges: Regulators, including the Public Utilities Commission of Sri Lanka (PUCSL), raised concerns over the rising use of non-compliant equipment, unauthorized modifications, and installations by unqualified personnel, which threaten public safety and grid reliability. • Future Outlook: Experts emphasize adopting modern safety features like Arc Fault Circuit Interrupters (AFCI) and Rapid Shutdown Devices (RSD). Furthermore, as the use of Lithium Iron Phosphate (LFP) batteries grows, establishing recycling and end-of-life disposal frameworks today is deemed vital to prevent future environmental challenges.

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💎 Sri Lanka Targets US$ 1 Bn Gem Exports, Pushes Global Hub Ambitions

The Government of Sri Lanka has launched a strategic initiative to transform its traditional gem and jewellery industry into a US$ 1 billion export sector and regional trading hub through regulatory reforms, value addition, and enhanced global marketing. • Key Figures & Targets: Gem and jewellery exports currently average around US$ 300 million annually. The newly launched National Export Development Plan (NEDP) sets a specific goal for the sector to reach US$ 1.2 billion within the next five years, up from US$ 388 million in 2025. • Growth Performance: The sector recorded a solid 8.7% YoY growth during the first four months of 2026. • Strategic Reforms: Key government interventions focus on formalizing the value chain, strengthening the surveillance capabilities of the National Gem and Jewellery Authority (NGJA) to curb smuggling, and addressing administrative and tax bottlenecks. Plans include establishing a dedicated Gem and Jewellery Experience Centre to link gemstone trading directly with tourism. • Broader Context: While traditional drivers like apparel & textiles and tea remain vital, the state is prioritizing diversification into high-value sectors, including ICT, automotive components, and mineral industries. As part of this push, the Gem City Ratnapura Exhibition 2026 is scheduled for August 31–September 2 to attract international buyers.

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📈 Print Expo 2026 Kicks Off to Spotlight Innovation and Sustainability

Sri Lanka’s largest printing, packaging, and graphic communications trade fair begins today (June 19) and runs until June 21 at the BMICH, Colombo. Organized by the Sri Lanka Association of Printers (SLAP), the event targets technological adoption, automation, AI, and green production. • Overall Scope: The event brings together global and local technology providers, manufacturers, exporters, and key Sri Lankan sectors like apparel & textiles, pharmaceuticals, and FMCG to discover innovative production and packaging solutions. • MSME Integration: A primary strategic priority for SLAP's 2025–2030 vision is integrating micro, small, and medium enterprise (MSME) printers into national and global value chains through regional training and networking. • National Print Excellence Awards: Held on June 20 at Cinnamon Life, the concurrent awards program saw record industry participation. It benchmarks local quality against global standards across offset, digital, flexographic, and packaging categories. • Global & Institutional Backing: The Ministry of Industries and Entrepreneurship Development is attending alongside global bodies like the All India Federation of Master Printers (AIFMP). Konica Minolta Business Solutions Asia serves as the principal sponsor.

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⚡ NSO Pledges to Settle Rs. 10 Bn IPP Arrears Soon

• Current Status: The National System Operator (NSO) has settled approximately Rs. 3 billion out of Rs. 10 billion in outstanding arrears owed to independent power producers (IPPs) as of May 2026. • Remaining Dues: Around Rs. 7 billion remains outstanding. IPPs previously noted that an additional Rs. 2.5 billion becomes due every month, with payments halted since December 2025. • Impact: The delays have placed nearly 400 renewable energy companies—primarily local small and medium-scale enterprises—under severe financial stress. • Outlook: NSO Chairman Dr. Pradeep Perera stated remaining payments will be cleared once expected funding is received, though a specific timeline has not yet been provided due to competing creditor obligations.

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Grid Update: Forced Renewable Power Shutdowns to End by 2027 📈

• Overall Target: The National System Operator (NSO) expects to completely eliminate forced curtailments of solar and wind generation next year through the integration of Battery Energy Storage Systems (BESS). • The Problem: Renewable energy developers face heavy financial losses due to repeated forced shutdowns during low-demand periods (weekends and public holidays). Earlier this year, solar and wind curtailments caused an estimated loss of around Rs. 2 Bn to the sector, including a 10-day forced disconnection of large-scale rooftop solar in April. • The Solution: Sri Lanka is rolling out over 400 MW of battery storage to absorb excess clean energy and stabilize the grid: - A 160 MW BESS tender has already been awarded, with equipment delivered. - A subsequent 250 MW battery storage tender is set to be launched. • Sector Landscape: Renewable sources (including large hydro) accounted for ~62% of Sri Lanka's total electricity generation in 2025. High power tariffs remain a critical hurdle, placing local manufacturers at a competitive disadvantage against regional peers. • Regulatory Reform: Under the new electricity sector framework, the authority to determine tariffs for renewable energy has officially shifted from the CEB to the PUCSL.

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📈 Sri Lanka Aims to Unlock US$ 2 Bn Mineral Export Potential

• Strategic Pivot: At the Mineral Sands Technical Conference 2026, the Government announced a mission to transform Sri Lanka from a raw material exporter into a regional mineral processing hub. This shift aims to drive economic diversification and generate high-skilled employment. • Resource Scale: Industry data indicates Sri Lanka holds ~604 million tonnes of mineral sands containing ilmenite, rutile, zircon, and monazite (critical for electric vehicles and renewable energy), alongside significant deposits of graphite, quartz, and phosphate. • Export Valuation: The International Trade Centre estimates current export potential at US$ 778 Mn. However, a Pathfinder Foundation report highlights that long-term export earnings could approach US$ 2 Bn if downstream processing and mineral-based manufacturing are successfully developed. • Growth Catalysts: Unlocking this wealth requires a comprehensive islandwide geophysical survey to map underexplored resources. Attracting long-term foreign investment will depend on establishing transparent regulations, policy consistency, and predictable approval pathways.

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Financial & Investment News

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

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

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

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

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

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

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

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

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Sri Lankan Unit Trust Industry Holds Steady in April 2026 Amid Volatility 📈

• Overall Figures: The industry reported Assets Under Management (AUM) of Rs. 589 Bn, remaining flat compared to March 2026 and showing a minor 2.3% decrease year-over-year (YoY). The assets are distributed across 87 funds managed by 16 fund management companies. • Sector Breakdowns: • Equity-related funds saw robust momentum, surging 91.7% YoY and 9.0% month-on-month (MoM) to reach Rs. 61 Bn. • Fixed income funds experienced a ~10.0% YoY decline but remained flat compared to March. • Investor Growth & Engagement: Total investor count held steady MoM at 154,250, reflecting a strong 26.6% YoY growth. The industry secured 3,357 new unit holders in April—primarily driven by equity-related funds—marking a 56.6% YoY increase and a 12.1% MoM growth. • Market Outlook: According to the Unit Trust Association of Sri Lanka (UTASL), steady inflows into equity funds indicate a continued investor focus on capital preservation and long-term wealth creation. Professional fund management and diversification continue to help retail investors navigate short-term global and domestic market volatilities.

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

Uncategorized [Sri Lanka Arrests Former Intelligence Chief Over Easter Attacks](https://www.youtube.com/watch?v=07CfVA6viBk) This video provides a television news report detailing the background of the arrest of former intelligence chief Suresh Sallay and the wider context of the 2019 Easter Sunday terror attack investigation in Sri Lanka.