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SriLankan Airlines Resumes Daily Flights to Riyadh and Dubai ✈️

The national carrier, SriLankan Airlines, has announced the resumption of regular daily operations to two major Middle Eastern hubs following a temporary suspension due to regional conflict. • Riyadh (Saudi Arabia): Daily flights resume tonight, March 9. • Dubai (UAE): Daily services commence tomorrow, March 10. Operational Details: • Colombo–Riyadh: Departs 18:15 (UL265); Returns 22:35 (UL266). • Colombo–Dubai: Departs 12:40 (UL231); Returns 17:00 (UL232). This resumption is a vital step for aviation and labor migration sectors, ensuring the movement of the Sri Lankan workforce and supporting tourism connectivity. The airline noted that while flights have resumed, authorities will continue to monitor regional safety conditions to prioritize passenger and crew wellbeing. 📈

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Product & Service Launches / Business Expansions

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SriLankan Airlines Resumes Daily Flights to Riyadh and Dubai ✈️

The national carrier, SriLankan Airlines, has announced the resumption of regular daily operations to two major Middle Eastern hubs following a temporary suspension due to regional conflict. • Riyadh (Saudi Arabia): Daily flights resume tonight, March 9. • Dubai (UAE): Daily services commence tomorrow, March 10. Operational Details: • Colombo–Riyadh: Departs 18:15 (UL265); Returns 22:35 (UL266). • Colombo–Dubai: Departs 12:40 (UL231); Returns 17:00 (UL232). This resumption is a vital step for aviation and labor migration sectors, ensuring the movement of the Sri Lankan workforce and supporting tourism connectivity. The airline noted that while flights have resumed, authorities will continue to monitor regional safety conditions to prioritize passenger and crew wellbeing. 📈

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LankaPropertyWeb Launches AI-Driven 'Apartment Finder' Tool 📈

• Real Estate Technology: LankaPropertyWeb (LPW) has introduced a project-centric 'Apartment Finder' tool to streamline the search process within Sri Lanka’s largest apartment database, moving away from traditional scattered listings. • Financial Integration: A key feature allows users to filter properties based on home loan repayment values rather than just total price, integrating monthly affordability directly into the search experience. • Market Transparency: The tool offers three distinct viewing modes: • Map View: First-of-its-kind in Sri Lanka for location-based searching. • Table View: A data-driven approach for requirement matching. • List View: Enhanced project and unit-level information. • Data Intelligence: Developed by LPW’s Market Intelligence Team, the tool uses proprietary mapping to eliminate duplicate listings and group individual units under their respective developments for a cleaner user interface. • Industry Recognition: In 2026, the platform received multiple awards, including Best Use of AI-Powered Technology and Most Innovative PropTech Solution in Sri Lanka, highlighting the sector's shift toward digital transformation and ICT/BPM integration in property markets.

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UAE-Based Web3Interactive & Immersive Labs Launch Real Estate Tech in Sri Lanka 📈

• Overall Strategy: Dubai-headquartered Web3Interactive and its R&D arm, Immersive Labs, are introducing advanced Virtual Reality (VR) and Augmented Reality (AR) visualization tools to the local market. The move aims to "leapfrog" traditional property marketing by applying proven Middle Eastern sales acceleration strategies. • Market Context: The launch leverages Sri Lanka’s steady 2025 real estate recovery, fueled by macroeconomic stabilization and lower policy rates. The initiative specifically targets Foreign Direct Investment (FDI) and the Global Diaspora, who currently account for a significant share of online property searches. • Key Tech Features: • Immersive walkthroughs allowing investors to experience properties pre-construction. • High-fidelity architectural visualizations designed to meet global standards. • Integration of ICT/BPM engineering talent from Sri Lanka with Middle Eastern domain expertise. • Economic Impact: By centralizing engineering in Sri Lanka while serving the MENA region, the group strengthens the local technology and software exports sector. For developers, these tools are expected to increase conversion rates and strengthen the appeal of Sri Lankan assets to international buyers. • Future Outlook: The group plans to expand these immersive solutions across broader development portfolios and diversify into other industry sectors beyond real estate. _Note: Based on current industry reports and company disclosures._

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DMASL Named Official Festival Partner at ADFEST 2026 Thailand 📈

The Digital Marketing Association of Sri Lanka (DMASL) has secured a strategic partnership with ADFEST 2026, Asia’s premier creative and advertising festival, scheduled for March 19–21 in Thailand. • Strategic Recognition: This partnership positions Sri Lanka’s digital marketing and creative sectors within a major Asia-Pacific platform, fostering cross-border collaboration and regional connectivity. • Industry Impact: The move aims to elevate Sri Lankan talent and innovation on the international stage, aligning with DMASL's goal to establish the country as a regional hub for digital innovation. • Regional Integration: ADFEST leadership highlighted the "passion and ambition" of Sri Lanka’s digital community, emphasizing the role of emerging markets in the evolving Asian creative landscape. • Future Outlook: The collaboration serves as a precursor to the DMASL Digital Summit Asia – Sri Lanka 2026, focusing on professional development and strategic thinking within the ICT/BPM and creative services ecosystem. This milestone reinforces the growth of Sri Lanka's service exports and its commitment to global industry standards.

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Sri Lankan AI Medical Device "JENDO" Piloted in Bahrain 📈

The Embassy of Sri Lanka in Bahrain, in collaboration with the ICTA, has successfully facilitated the pilot testing of a home-grown cardiovascular screening device at the King Hamad American Mission Hospital. • Innovation: The device, trademarked as JENDO, uses Artificial Intelligence for the non-invasive early detection of cardiovascular conditions and vascular abnormalities through physiological signal analysis. • Pilot Details: Conducted from February 23–25, 2026, the trial focused on clinical integration and usability within Bahrain’s largest American Mission Hospital branch. • Economic Context: Developed by a team led by Keerthi Kodithuwakku, the project highlights the expansion of Sri Lanka's ICT/BPM and digital health sectors into international markets. • Recognition: The technology previously won the Presidential Gold Award in 2025, signaling a shift toward high-value, scalable medical exports for the Sri Lankan economy. • Strategic Impact: This collaboration underscores Sri Lanka's growing capacity for medical innovation and its efforts to commercialize indigenous technology globally.

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Emirates Restores 60% of Route Network Following Airspace Re-opening ✈️

Emirates is rapidly scaling up operations following a partial re-opening of regional airspace, with a target to restore 100% of its network in the coming days. • Operational Status: As of 6 March, the airline processed approximately 30,000 departing passengers from Dubai. By tomorrow (7 March), it expects to operate 106 daily return flights to 83 destinations, covering nearly 60% of its global network. • Regional Market Scaling: • India: Significant capacity deployment with 22 daily flights serving all nine Indian gateways by 7 March. This is a critical corridor for transit labor and regional trade. • United Kingdom: Operating 11 daily flights across five airports to meet high travel demand. • United States: Maintaining connectivity via seven American gateways. • Economic Context: The restoration of these routes is vital for Sri Lanka’s tourism and export logistics, as Dubai serves as a primary global hub for apparel & textiles and perishable goods (such as tea and seafood) destined for Europe and the Americas. • Advisory: Operations remain subject to airspace availability. Passengers are advised to travel to airports only with confirmed bookings as the airline prioritizes earlier bookings.

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📈 Roar Global Launches Roar Labs to Drive AI Marketing Innovation

Roar Global, a prominent Sri Lankan-founded mar-tech venture builder, has officially established Roar Labs. This new initiative is designed to rapidly prototype and test AI-driven marketing products to stay ahead of structural shifts in the global digital ecosystem. • Core Objective: To identify emerging trends in automation and AI, translating these insights into experimental products within real-market environments. Successful projects may evolve into independent ventures. • Strategic Reach: Leveraging a group-wide team of 150+ specialists, the initiative supports over 5,000 clients across eight international markets. • Sector Impact: The lab strengthens the ICT/BPM and digital marketing sectors by moving beyond services into high-value intellectual property (IP) and software-as-a-service (SaaS) development. • Portfolio Synergy: Roar Labs will feed into the group's existing ecosystem, which includes Roar AdX, 3P Media, Roar Media, CreatorFlow, Apex AI, and BrandRadar.

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📈 HP Unveils 5-Pillar Strategy for Sri Lanka’s Digital Growth

HP Inc. has reinforced its long-term commitment to Sri Lanka, identifying it as one of its fastest-growing markets in the region. The strategy focuses on accelerating AI-led transformation and digital inclusion across key economic sectors. • Market Position: HP currently holds a 27% market share in Sri Lanka (as of Q4 2025, IDC), with robust demand in banking, financial services, retail, and manufacturing. • The 5-Pillar Framework: Education: Aiming to bridge the digital divide by putting a PC in the hands of every child, utilizing AI-driven language capabilities for personalized learning. MSMEs: Supporting small and medium enterprises (a vital economic pillar) by enabling "AI on the edge" to enhance productivity and security. Local Enterprises: Partnering with businesses on "future-of-work" strategies and workforce enablement to retain emerging talent. Government Partnerships: Collaborating on national priorities, including healthcare diagnostics and scalable digital education models. Digital Inclusion: Targeting the "next billion users" by tailoring technology solutions specifically for high-growth emerging economies. • Economic Impact: The initiative focuses on digitization as a driver for resilience, aiming to unlock higher profitability for the MSME segment and modernizing the national technology infrastructure.

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### Samsung Launches Galaxy S26 Series Pre-Orders in Sri Lanka 📈

Samsung Sri Lanka has officially opened pre-orders for its AI-driven Galaxy S26 lineup, including the S26, S26+, and S26 Ultra. This launch signals a push in the high-end ICT/BPM and consumer electronics segment with a heavy focus on next-generation AI integration. • Pre-Order Incentives: Customers can access price savings of up to Rs. 64,900 during the promotional period. • Device Protection: Exclusive benefits include a two-year, two-time front screen replacement (valued at Rs. 144,404) and a two-year, two-time back glass replacement (valued at Rs. 23,849). • Financial Terms: To support affordability in the local market, Samsung is offering "Easy Pay" monthly installment plans for up to 26 months. • Connectivity Partnership: Pre-orders include a free 2TB data bundle from Dialog (350GB/month for 6 months). This rollout emphasizes Samsung's strategy to capture the premium smartphone market in Sri Lanka by leveraging advanced AI features and localized financial incentives to drive adoption.

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✈️ SriLankan Airlines Adds Extra London Flight Amid Middle East Disruptions

SriLankan Airlines has announced an additional scheduled service between Colombo and London on 8 March 2026. This move aims to facilitate travel for passengers impacted by recent flight cancellations stemming from the ongoing situation in the Middle East. • Flight Details (8 March 2026): Colombo to London (UL1205): Departs 06:50 hrs; Arrives 13:10 hrs. London to Colombo (UL1206): Departs 15:05 hrs; Arrives 06:55 hrs (next day). • Operational Context: The national carrier is actively monitoring regional instability and plans to deploy further additional flights on select routes to mitigate travel disruptions. This proactive capacity management is crucial for maintaining connectivity in the tourism and aviation sectors, which are vital for Sri Lanka’s foreign exchange liquidity. • Support Channels: Passengers can verify status via the 1979 hotline, WhatsApp (+94 74 444 1979), or official digital platforms. _Summary based on official airline scheduling data._

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Sri Lankan Entrepreneur Rikas Usman Launches XPLOSA LLC in New York 📈

• Global Expansion: Sri Lankan industrialist Rikas Usman, Chairman of Xplosa Corporation, has officially expanded into the U.S. market with the launch of XPLOSA LLC in New York. This marks a strategic move to take Sri Lankan manufacturing excellence to the global industrial adhesives stage. • Sector Focus: The venture will operate under the flagship brand ARKEMIC, targeting high-growth sectors including packaging, woodworking, construction, and textiles. The product portfolio features advanced PVA, BOPP, and Styrene-Acrylic formulations. • Strategic Goals: • Establishing a full-scale adhesive manufacturing facility in the U.S. in the near future. • Delivering eco-friendly, next-generation adhesive technology compliant with EPA and international standards. • Strengthening the link between Sri Lankan polymer chemistry expertise and North American market reach. • Institutional Backing: Xplosa Corporation is part of the Kandyan Group, a prominent Sri Lankan conglomerate with over 40 years of heritage in manufacturing, FMCG, and logistics. • Economic Impact: The move highlights the potential for Sri Lankan industrial chemicals and manufacturing firms to diversify internationally, boosting the country's profile as a hub for technical entrepreneurship and specialized exports.

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📈 SITREK Group & Singapore’s ST Engineering Partner to Bolster Sri Lanka’s Cyber Resilience

Sri Lanka’s SITREK Group has signed a strategic Memorandum of Collaboration (MOC) with Singaporean technology leader ST Engineering to enhance national digital infrastructure and enterprise-level security. • Strategic Alliance: The partnership, announced at the SITREK Cyber & Tech Summit 2026, combines local expertise with global defense-grade capabilities to address evolving regional cyber threats. • Core Objectives: Focus includes technology integration, knowledge exchange, and the deployment of advanced cybersecurity systems aligned with international standards. • Economic Impact: The collaboration aims to drive skills development in the ICT/BPM sector, reinforcing Sri Lanka’s position as a burgeoning hub for cybersecurity excellence in South Asia. • Digital Trust: Initiatives target institutional capacity building to safeguard critical digital infrastructure, a vital component for national economic stability and boardroom-level risk management.

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Awards & Recognitions

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Ceylon Agro Industries (Prima) Honoured at National Export Awards 2025 📈

Ceylon Agro Industries (Prima Group Sri Lanka) secured the Bronze Award in the Confectionery Products – Large Sector category at the prestigious National Export Awards, organised by the National Chamber of Exporters (NCE). • Key Achievement: Recognized as a first-time entrant in the highly competitive Large Sector, marking a significant milestone for its flagship brand, Prima KottuMee. • Export Footprint: The brand currently exports to over 25 countries, including major markets such as Australia, Italy, the UAE, the UK, and the Maldives. • Economic Impact: The award highlights the company’s role in strengthening Sri Lanka’s export profile through quality manufacturing and innovation in the food and beverage sector. • Strategic Outlook: Leveraging this recognition to further its position as a global ambassador for Sri Lankan exports and expanding its international distribution network.

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Sri Lanka’s Heritage Sites Rank in Global Top 50 for 2026 📈

Sri Lanka has secured a prominent position in the "50 Best Heritage Travel Destinations in the World for 2026" by Travel and Tour World (TTW). The ranking highlights the country’s ancient Buddhist civilization and architectural excellence as key drivers for the global growth in heritage tourism, which is currently seeing a 6.4% YoY increase. • Top Ranked Sri Lankan Sites: Sigiriya (Ancient City) Temple of the Tooth Relic (Kandy) Old Town of Galle & its Fortifications Golden Temple of Dambulla Ancient Cities of Anuradhapura & Polonnaruwa • Regional Connectivity: The report specifically highlights Ram Setu (Adam’s Bridge) connecting Mannar, Sri Lanka, to India as a site of "profound religious and cultural significance," bridging mythology and history. • Economic Context: Heritage tourism is identified as a vital driver for local economic development. The integration of cultural landmarks with natural treasures like the Sinharaja Forest Reserve and Central Highlands positions Sri Lanka as a diverse destination for immersive travel. • Global Market Trends: Sri Lanka features alongside heritage giants like India, Italy, and Egypt. The rankings are based on editorial research and the preferences of 23 million readers, signaling strong future demand for Sri Lanka’s cultural exports. _Data based on TTW 2026 Global Heritage Rankings._

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MullenLowe Sri Lanka Dominates Effie Awards 2025 📈

MullenLowe Sri Lanka has reaffirmed its market leadership by being named Effie Agency of the Year for 2025. This marks their third consecutive win and their eighth title within the last decade, reflecting consistent creative effectiveness in the advertising and marketing sector. • Award Tally: The agency secured a total of 21 accolades at the ceremony held on March 3, 2026: 1 Gold (Celcius) 3 Silver (Watawala Tea, Atlas Axillia, Asian Paints) 3 Bronze (Anlene, Unilever, Maliban) 14 Finalist Awards • Strategic Impact: The wins highlight MullenLowe’s ability to drive commercial growth across diverse industries, from FMCG and tea to manufacturing. The recognition underscores the agency's role in supporting national brands like Watawala and Maliban through strategic communication that impacts market share and consumer behavior. • Market Standing: Beyond the local Effies, MullenLowe was also recently named Agency of the Year by Campaign Asia, signaling strong regional competitiveness for Sri Lanka's creative services and ICT/BPM adjacent sectors. _Source: Based on data published March 6, 2026._

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New Media Solutions Dominates Effie Awards Sri Lanka 2026 📈

Homegrown agency New Media Solutions emerged as the most awarded traditional and digital corporate communications firm at the Effie Awards 2026, securing multiple wins for high-impact marketing campaigns. • Key Award Wins: • 2 Silver Effies: ‘Daintee Gingerbread House’ (Sunshine Consumer Lanka Ltd) • 2 Bronze Effies: ‘My Zesta Story’ (Zesta) • Multiple Merit Finalists: Campaigns for Softlogic Life Insurance PLC, including the #LetsChangeTheStory initiative. • Sector Expertise: The agency demonstrated versatility across Insurance, Beverages, and Consumer Goods, winning in categories such as seasonal marketing, social media, and social impact communications. • Economic Context: The recognition of locally-led Brand Communications and Digital Media agencies highlights the growing sophistication of Sri Lanka’s ICT/BPM and creative services sector, emphasizing the shift toward measurable, data-driven marketing effectiveness. • Strategic Leadership: Led by CEO Nilupa Sanjaya Liyanage, the firm integrates media strategy and Public Relations to drive tangible business results for both local and multinational brands.

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LankaPay Technnovation Awards 2026: Honoring "Inclusive FinTech" Pioneers 📈

LankaPay has announced the 8th edition of Sri Lanka’s premier payment technology awards, scheduled for 24 March 2026. The event recognizes excellence in digital payment innovation across banks, NBFI’s, and ICT/BPM service providers. • Core Theme & Scope: The 2026 theme, "Inclusive FinTech," focuses on expanding financial access to remote communities. The awards evaluate performance data from 1 January 2025 to 31 December 2025 across 12 categories, including financial inclusivity, digital government payments, and cross-border transactions. • Strategic Importance: The initiative reinforces the ICT/BPM sector's role in national digitalization. By benchmarking secure and convenient payment solutions, the awards support economic stability and the integration of more Sri Lankans into the formal digital economy. • Key Participation & Governance: • Chief Guest: CBSL Governor Dr. Nandalal Weerasinghe. • Judging: Led by Rajeeva Bandaranaike (CEO, Colombo Stock Exchange), ensuring a rigorous, independent audit of digital performance. • Partners: Major global players including Mastercard, UnionPay, and Alipay+ are strategic sponsors, signaling international confidence in Sri Lanka's fintech ecosystem. • Public Engagement: Includes an online poll for the "Most Popular Digital Payment Solution of the Year 2025," bridging the gap between high-tech innovation and everyday consumer usage.

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## Energy Efficiency as National Priority for Economic Growth 📈

Prime Minister Dr. Harini Amarasuriya emphasized that enhancing energy efficiency is a core pillar for strengthening the national economy and saving foreign exchange. Speaking at the Sri Lanka National Energy Efficiency Awards, the PM linked effective energy management directly to national development and international climate commitments. • Strategic Goals & Policy Renewable Energy: Government target to increase the renewable share to 70% by 2030. Global Commitments: Alignment with the Paris Agreement to reduce greenhouse gas emissions and ensure long-term energy security. Sector Reforms: Restructuring of the Ceylon Electricity Board (CEB) has entered its final phase to eliminate inefficiencies and irregular practices. • Key Award Winners Outstanding Energy Manager: Jeewaka Thushara (World Trade Centre Colombo). Gold Award Winners: Includes National Cleaner Production Centre, Forbes Marshall Lanka, World Trade Centre Colombo, BiC, DENTA Manufacturing, and MAS Fabrics Thulhiriya. • National Impact Emphasis on adopting new technology and transparent procurement processes. Critical focus on energy management across all scales, from large-scale industries (like apparel & textiles) to SMEs, to stabilize the economy and mitigate global warming. _Data based on official statements from the Sri Lanka National Energy Efficiency Awards._

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Digibrush & Emerald Triumph at Effie Awards 2025 📈

Sri Lanka’s digital marketing landscape saw a historic milestone as Digibrush led its client, Emerald, to win the "Most Effective Brand of the Year" at the SLIM Effie Awards 2025. • Key Achievements Digibrush secured 19 wins in total, including 2 out of only 5 Golds (40% of all Gold awards) presented during the night. Other accolades included 3 Silvers, 4 Bronzes, and 10 Finalist spots across sectors like FMCG, retail, and financial services. • The #DoublePocket Campaign Recognized as arguably the most awarded single campaign in Sri Lanka, it previously won the Grand Prix at SLIM Digis 2.5. Leveraging a cultural moment involving President Anura Kumara Dissanayake, the campaign went live within 24 hours. Impact: Emerald saw a 747% surge in double-pocket shirt orders and a 147.7X Return on Ad Spend (ROAS). • Market Significance The win underscores the growing dominance of ICT/BPM and digital agencies over traditional multinational networks in the apparel & textiles marketing space. Digibrush remains the only agency in Sri Lanka to claim four Grand Prix wins at SLIM Digis, reinforcing its position as a leader in performance marketing.

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📈 Jasmin Media Achieves 2026 Google Premier Partner Status

Colombo-based digital agency Jasmin Media has been awarded the Google Premier Partner designation for 2026. This status places the firm within the top 3% of Google partner agencies globally, marking its second such recognition in four years (previously awarded in 2023). • Performance Standards: The status is granted based on sustained campaign performance, measurable client growth, and advanced certifications across Google’s advertising infrastructure. • Full-Spectrum Capability: The agency holds certifications in search, display, YouTube video advertising, e-commerce shopping campaigns, and mobile app promotion. • Sector Diversification: Jasmin Media serves key local industries including banking, education, healthcare, FMCG, hospitality, and retail. • Regional Impact: Beyond Sri Lanka, the agency manages performance-led growth for clients in the UK, Australia, and the MENA region, showcasing the global competitiveness of the local ICT/BPM and digital marketing sector. The achievement underscores the agency's ability to operate at international standards while building high-tier digital capability within the Sri Lankan economy.

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## British Council Launches Women in STEM Scholarships for Sri Lankans 🎓

The British Council has opened applications for its sixth consecutive Women in STEM scholarship cycle, aimed at strengthening female leadership in science and innovation. • Program Scope: Provides fully funded one-year master’s degrees at top UK universities. Globally, 90 scholarships are available across 30 countries, with 25 specifically allocated to the South Asian region, including Sri Lanka. • Financial Value: Each scholarship is worth a minimum of £40,000, covering full tuition fees, living stipends, travel, visa costs, and health insurance. • Economic Impact: By connecting local talent with global expertise in fields like biomedical sciences and innovation, the program aims to bolster Sri Lanka’s ICT/BPM and research sectors, essential for national development and a diverse workforce. • Historical Reach: To date, the initiative has engaged 43 UK universities and awarded approximately 500 scholarships worldwide. • Deadline: Applications are open until late April 2026 for the 2026–27 academic year.

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Phoenix Ogilvy Tops 2025 Creative Rankings in Sri Lanka 📈

• Overall Achievement: Phoenix Ogilvy has been named the _2025 Sri Lanka Agency of the Year_ by Campaign Brief Asia, marking the country’s return to the regional creative rankings after a one-year absence. • Performance Metrics: The agency secured the top national spot with 295 Creative Ranking points. These points were amassed through significant wins at six major international award shows, including LIA, One Asia, Clio, AdFest, Spikes Asia, and The Work. • Individual Talent: The agency dominated the national Individual Creative Rankings. The top three spots were swept by Phoenix Ogilvy talent: Nadeera Warawita (No. 1 - 250 points) Sakuna Ranasinghe (No. 2 - 220 points) Samitha Kaushalya (No. 3 - 150 points) • Economic & Sector Impact: As a major hub in the ICT/BPM and creative services sector, the agency employs 290 industry specialists. This performance underscores the strength of Sri Lanka's intellectual capital and its ability to export high-value creative services globally. • Strategic Context: Chairman Irvin Weerackody attributed the success to a blend of global rigour and deep local intelligence, reinforcing the agency's 50-year standing as a pillar of the local marketing landscape. _Source: Campaign Brief Asia / Ogilvy Group Sri Lanka (Provisional Data)_ ---

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🏆 CEO of the Year 2025 Awards Tonight in Colombo 📈

The prestigious CEO of the Year 2025 Awards Ceremony will take place this evening, February 26, at the Cinnamon Grand Colombo. Organized by the Global CEO Forum, the event serves as a premier national platform to honor corporate leaders driving Sri Lanka’s economic stability. • Event Focus: Recognizing leadership excellence, strategic innovation, and resilience across various sectors. • Evaluation Criteria: Winners are selected through a rigorous process assessing organisational performance, governance standards, and industry impact. • Key Participants: Attendees include senior government Ministers, diplomats, and high-level corporate executives. • Economic Context: The ceremony emphasizes the role of the private sector in fostering global competitiveness and sustainable development for Sri Lanka. Strategic Highlights: • Focuses on ethical governance and innovation as core drivers of national progress. • Encourages public-private sector engagement to strengthen the country's economic resilience. _Note: Award winners will be announced during the gala ceremony._

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## Metropolitan Technologies Wins Special Category at 'The Great HR Quiz 2026' 📈

The Human Resources team of Metropolitan Technologies secured the Special Category Award at the 2026 edition of ‘The Great HR Quiz’, organized by the Chartered Institute of Personnel Management (CIPM) Sri Lanka. • Event Overview: The annual competition, held on 28 January 2026, featured over 70 leading organizations from across the island. It serves as a premier knowledge-sharing platform for HR professionals to promote excellence in people management and strategic alignment. • Sector Impact: As a key player in Sri Lanka’s ICT and technology solutions sector—holding a significant market share in hardware—Metropolitan’s win underscores the importance of a "future-ready" workforce in driving business performance. • Key Competition Results: • Overall Champion: International Distillers Ltd (IDL) • 1st Runner-Up: InQube Global (Pvt) Ltd • 2nd Runner-Up: DFCC Bank PLC • Sector Winner (Finance/Insurance): Janashakthi Group (JXG) • Strategic Significance: The 2026 quiz featured a revitalized format focusing on real-life HR scenarios and decision-making. The achievement reflects Metropolitan's commitment to high standards in human resource management, essential for sustaining its leadership in the local technology landscape. _Note: Results are based on the latest industry data from the CIPM 2026 event cycle._

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Economic News

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### CBSL Governor: Sri Lanka Armed with Buffers to Combat Global Shocks 📈

In a recent interview with Bloomberg, Central Bank Governor Dr. P. Nandalal Weerasinghe affirmed that Sri Lanka is better positioned to navigate external economic pressures due to strengthened macroeconomic fundamentals. • Policy Buffers & Inflation: The economy holds sufficient policy buffers, including robust foreign reserves. Current inflation stands at approximately 1.6%, significantly below the 5% target, providing ample room to absorb potential global price shocks. • Resilience Framework: The Governor highlighted three pillars for economic adjustment: Cost-reflective pricing mechanisms. Flexible inflation targeting. Exchange rate flexibility. • Global Context: While acknowledging risks from ongoing geopolitical conflicts, the Governor noted that significant external shocks may necessitate further discussions with the IMF. However, the current shift toward a flexible policy framework is expected to act as a primary stabilizer. • Outlook: Based on provisional data, the CBSL maintains that the shift from a rigid to a flexible policy stance has created the necessary space for the domestic market to withstand global uncertainties more effectively than in previous cycles. ---

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📈 Middle East Conflict Triggers Global Shift in Central Bank Policy

The escalating crisis between the U.S. and Iran has created a significant supply shock, forcing central banks to balance growth support against rising inflationary pressures from fuel costs. • Regional Impact & Monetary Shifts • Emerging Asia: Central banks in India, Thailand, and the Philippines face a "risky bet" on interest rates. While India seeks to support growth, a rush to the U.S. Dollar may necessitate currency intervention. • Stagflation Risks: Oil prices surging past US$ 110 per barrel heighten the threat of stagnant growth paired with high inflation across manufacturing-heavy economies. • East Asian Hubs: Manufacturing giants like South Korea and Japan are highly vulnerable to unstable raw material costs and global trade disruptions. • Economic Outlook & Trade-offs • Japan: Estimates suggest crude oil at US$ 110 could shave 0.39% off GDP growth. With inflation exceeding 2% for four years, the Bank of Japan has limited room to pause rate hikes. • Global Markets: Safe-haven demand for the dollar is intensifying as share markets plunge, complicating the outlook for ICT/BPM and export-oriented sectors dependent on stable exchange rates. • Summary Note Policy rethink is driven by the need to counter capital outflows and rising energy prices while avoiding a total collapse in domestic growth. Based on early market reactions on March 9, 2026.

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Iran Conflict Heightens Credit Risks for Emerging Markets 📈

A sustained conflict involving Iran and potential disruptions to the Strait of Hormuz pose significant credit risks to emerging market (EM) sovereigns, according to Fitch Ratings. While hydrocarbon exporters may see a fiscal windfall, net importers face multifaceted economic strains. • Energy & Fiscal Impact: High global energy prices directly threaten countries where net fossil fuel imports exceed 3% of GDP. Governments maintaining energy subsidies to shield consumers face increased fiscal deficits and inflationary pressure. • Regional Vulnerabilities: • South Asia: Countries like Pakistan and India are highly exposed due to heavy reliance on energy imports and critical remittance flows from the Gulf region. • Tourism & Trade: Egypt and Jordan face significant risks from potential disruptions to tourism and logistics. • Supply Chains: Potential shortages in aluminum and fertilizer inputs from the Gulf could impact global food production and manufacturing. • Financial Risks: Prolonged instability may trigger a stronger US dollar and weaken international debt markets. This increases the cost of servicing and refinancing debt, particularly for highly speculative-grade issuers. • Mitigating Factors: Many EM sovereigns frontloaded foreign-currency debt issuance in early 2026, providing a temporary buffer against market volatility. However, a closure of the Strait of Hormuz lasting beyond one month would lead to more substantial rating impacts. _Note: Analysis based on Fitch Ratings provisional impact assessments as of March 2026._

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Private Sector Credit Hits 11-Month Low in January 📉

Sri Lanka’s private sector credit growth saw a sharp deceleration in January 2026, marking the lowest levels of new borrowing in nearly a year as a post-cyclone slowdown deepens. • Overall Private Credit: New private sector borrowing fell to Rs. 82.6 Bn in January, an 11-month low. This follows a peak of Rs. 263 Bn in November 2025. • Debt Stock: Despite the monthly slowdown, the total outstanding private sector debt stock rose 26.3% YoY to Rs. 10.3 Tn. • Banking Sector Dynamics: • Lending from domestic commercial banks dropped to Rs. 108 Bn (a 9-month low). • Total domestic bank debt stock grew 29% YoY to Rs. 9.74 Tn, showing heavy reliance on local funding. • Overseas banking unit debt declined 6.6% YoY to Rs. 556 Bn. • Public Sector & SOEs: • Net credit to the Government edged down 0.6% to Rs. 8.3 Tn. • Credit to State-Owned Enterprises (SOEs) contracted sharply by 29% YoY to Rs. 422.7 Bn, signaling tighter lending controls for public corporations. • Market Context: Data suggests a disconnect between banks' reported "willingness to lend" and actual disbursements, which have slowed following the impact of Cyclone Ditwah. While SME and corporate credit appetite exists, realized lending reflects a more cautious start to 2026.

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### ⛽ Govt. to Maintain Cost-Reflective Fuel Pricing Amid Mid-East Tensions

The Sri Lankan Government has reaffirmed its commitment to cost-reflective pricing for energy and fuel, resisting subsidies despite rising global oil prices triggered by Middle East instability. • Fiscal Strategy & Inflation The Government will avoid using the Ceylon Petroleum Corporation (CPC) to artificially lower prices, aiming to protect state finances and debt market stability. Inflation is projected to remain manageable between 5%–6%, even with potential short-term spikes driven by supply-side energy costs. Macroeconomic stability is prioritized to keep interest rates low by reducing the need for government domestic borrowing. • Sectoral Impacts & Exports Tea: This sector is the most exposed, as the Middle East accounts for ~6% of Sri Lanka's total exports. Export Growth: While February performance is expected to be strong at 10%–12%, geopolitical tensions may dampen March growth by several percentage points. Competitiveness in manufacturing and logistics may face pressure from higher shipping and energy overheads. • Contingency Measures Instead of broad subsidies, the Government plans targeted support for vulnerable groups, such as the fisheries sector. Budgetary flexibility exists to reallocate capital expenditure to social safety nets if global conditions worsen significantly. Source: Based on provisional statements from the Ministry of Industry and Entrepreneurship Development (March 2026).

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⚠️ Fuel Rationing Urged Amid Middle East Crisis

Analysts are calling for immediate fuel rationing to prevent a complete stockout within 20 days, as regional conflicts push global oil prices above US$ 90 per barrel. While experts warn of supply chain "cluelessness," the President maintains that current inventories are stable. • National Stock Position: Diesel: 33 days of supply. Petrol: 28 days currently; expected to reach 40 days following a 35,000 MT shipment on March 7/8. Aviation Fuel: 49 days. Crude Oil: 44 days (including shipments at sea). • Supply Pipeline: Confirmed shipments via Sinopec, RM Parks, and IOC are scheduled between March 14 and March 28. Daily national requirement stands at approximately 1,800 MT, with the local refinery contributing 1,080 MT. • Global Market Volatility: Brent Crude: Rose 9.5% to US$ 92.69. WTI Crude: Rose 12% to US$ 90.90. Experts warn prices could hit US$ 150 if the Strait of Hormuz faces protracted closure, impacting energy security and transportation costs. • Operational Constraints: Total storage capacity at Kolonnawa and Muthurajawela is capped at 150,000 MT. The lack of a separate strategic reserve means operational and emergency stocks are held together, requiring precise drawdown management.

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Aravinda de Silva Calls for Further Lending Rate Cuts to Fuel 8% Growth 📈

Investor and entrepreneur Aravinda de Silva, speaking at the Almas Securities Investor Forum, urged for a further reduction in interest rates to stimulate the economy and support new business creation. • Banking & Finance: Criticsed the banking sector for prioritizing "enormous profits" through Government securities rather than funding the real economy. He highlighted the difficulty SMEs and young entrepreneurs face in accessing credit. • Current Market Indicators: Private sector borrowings rose 25.2% in 2025 to a record Rs. 10.2 trillion. Average Weighted Prime Lending Rate: ~8%. Average Weighted SME Lending Rate: 12%. New SME Lending Rate: ~11%. • Key Economic Reforms: Stressed the urgent need to expedite reforms in labour, energy, and customs. Failure to liberalize trade and create a level playing field may result in lost growth opportunities. • High-Growth Sectors: Identified logistics, mineral, digitization, and sports as areas with high investment potential. He believes digitization is critical for scaling the private sector to a global level. • Outlook: Projected that with the right reforms, Sri Lanka has the potential to achieve 7% to 8% GDP growth. De Silva recently launched the Sri Lanka Opportunity Fund with a $100 million target to support local startups.

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## Macro Stability: Govt. Targets 100 New Listings to Fuel Growth 📈

Deputy Minister Chathuranga Abeysinghe has outlined a strategic shift toward capital market financing to drive Sri Lanka's industrial expansion and ensure long-term stability. • Capital Market & Industry Targeting 100 new firms to list on the stock market within 2–3 years. Aiming to reduce heavy reliance on bank debt, which currently leaves local industries vulnerable to economic shocks. Focusing on equity financing, debentures, and bonds to build globally competitive Sri Lankan brands. • Macroeconomic Outlook & Growth GDP growth projected at approximately 5% going forward. Fiscal discipline and IMF-supported reforms have stabilized inflation and interest rates. Debt servicing expected to remain manageable, forecasted below US$ 3.5 Bn annually until 2032. • External Sector Performance Exports reached US$ 17.2 Bn last year; remittances exceeded US$ 8.1 Bn. FDI inflows surpassed US$ 1.2 Bn, with a target of over US$ 2 Bn annually. Key growth sectors identified: tourism, electronics manufacturing, tech services, and value-added agriculture. • Structural & Digital Reforms Implementation of a new national trade and tariff policy and a PPP framework. Digitalization of all government transactions to reduce bureaucracy. Business registration simplified to a 2-day process, down from submitting 15+ documents. _Note: Forecasts are based on current trajectory and provisional government data._

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Mideast War: Potential US$ 2.5 Bn Oil Shock for Sri Lanka 📈

The escalating conflict in the Middle East poses a severe threat to Sri Lanka’s fragile economic recovery, with rising energy costs and diplomatic pressures creating a new external crisis. • Energy & Oil: If global oil prices hit US$ 120 per barrel, Sri Lanka’s annual oil bill could double from US$ 2.5 Bn to US$ 5 Bn. Even a persistent US$ 20 per barrel increase adds US$ 820 Mn in annual costs, impacting transportation and electricity generation. • Remittances & Tourism: The Mideast accounts for 40% of total worker remittances (approx. US$ 3.2 Bn of US$ 8 Bn received in 2025). A prolonged war threatens these inflows and disrupts the hospitality trade, stalling growth in tourism and direct employment. • Diplomatic Strains: Sri Lanka is under global scrutiny after providing humanitarian aid to survivors of two Iranian naval vessels in its waters. Pressure from the US regarding the repatriation of these crews complicates the nation's neutral stance. • Economic Outlook: The IMF warns the recovery is "not a finished story." The shock could hit FDI flows and worsen macroeconomic imbalances, including inflation and debt sustainability. _Note: Based on provisional market estimates and current geopolitical developments._

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📈 Strong Start to 2026: Worker Remittances Surpass US$ 1.4 Bn

Sri Lanka's worker remittances maintained a robust upward trajectory in the first two months of 2026, providing a significant boost to the country's foreign exchange liquidity and external sector stability. • Overall Performance: Total remittances for January–February 2026 reached US$ 1.48 Bn, marking a substantial 32% increase compared to the same period in 2025. • Monthly Breakdown: • February 2026 inflows stood at US$ 729 Mn, a sharp 33% YoY growth from the US$ 548.1 Mn recorded in February 2025. • Sequentially, February saw a slight decline of 2.9% from the US$ 751.1 Mn received in January 2026. • Economic Impact: The consistent growth in inflows highlights the resilience of the migrant labor sector, which remains a primary source of foreign currency for Sri Lanka, essential for managing trade balances and supporting domestic consumption. _Source: Central Bank of Sri Lanka (CBSL) provisional data._

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📈 National Poverty Line Increases to Rs. 16,730 in Jan 2026

Sri Lanka’s national poverty line has seen a moderate year-on-year (YoY) increase, reflecting a gradual rise in the cost of basic consumption across the island. • Overall Figures: The minimum monthly expenditure required per person rose to Rs. 16,730 in January 2026, up from Rs. 16,334 in January 2025. This represents an average increase of approximately Rs. 380–Rs. 430 per individual. • Highest Cost Regions: Colombo remains the most expensive district with a poverty threshold of Rs. 18,044, driven by higher urban living costs. Other high-threshold districts include Gampaha, Kalutara, and Nuwara Eliya. • Lowest Cost Regions: Moneragala recorded the lowest poverty line at Rs. 15,997, followed by Kilinochchi and Hambantota, highlighting regional variations in price levels and consumption patterns. • Economic Context: The data suggests a steady, moderate uptick in the cost of basic food and non-food needs rather than sharp inflationary shifts. These benchmarks are critical for measuring social welfare needs and the impact of cost of living on the national workforce. _Note: Figures are based on official district-level estimates._

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Hormuz Closure: A Potential "Economic Tsunami" for Sri Lanka 📈

The sudden closure of the Strait of Hormuz by Iran poses a severe systemic shock to Sri Lanka’s fragile recovery, threatening energy security, remittances, and key export sectors. • Energy & Inflation Risk Sri Lanka relies on the Middle East for nearly all oil and gas imports (Oman, Iraq, UAE). While petrol/diesel are sourced from India and Singapore, these hubs depend on crude passing through the Strait. Sapugaskanda refinery operations are at risk; price spikes will likely drive up electricity, food, and transport costs. • Foreign Reserves & Liquidity Current reserves stand at US$ 6.82 Bn (as of Jan 2026), sufficient for only 3.1 months of essential imports. A prolonged conflict threatens the 2025 momentum where remittances grew 22.8% and exports rose 6.32%. • Sectoral Impact Remittances: Over 1 million Sri Lankans in the Middle East contributed significantly to the US$ 8 Bn+ total in 2025; conflict-driven repatriation remains a risk. Tea: A primary export to Iran and Arab nations, facing immediate logistics and demand disruptions. Apparel & ICT: Vulnerable to global supply chain volatility and potential capital flight. • Strategic Outlook Experts call for a National Governance Framework to ensure policy consistency regardless of political shifts. Proposed targets: Increasing GDP to US$ 200 Bn and achieving "net zero debt" by matching foreign assets to external liabilities (modeled after Singapore). Urgent need for export diversification into agritech and green industries to reduce regional dependency. _Note: Summary based on provisional 2025/2026 economic data and current geopolitical developments._

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Sustainability, ESG & Corporate Responsibility

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Darley Butler Launches "We Must Change" Sustainability Campaign 🌍

Darley Butler, the FMCG arm of E B Creasy & Co. PLC, has introduced an island-wide refill pouch initiative to significantly reduce plastic waste in the household and homecare sector. • Key Initiative: Launch of the "We Must Change" campaign on March 6, 2026, introducing refill pouches across four major brands: Teepol, Bio Clean, Softny, and Bubble All Out. • Environmental Impact: The transition from rigid plastic bottles to refill pouches is estimated to reduce plastic usage by up to 70% per product unit. • Market Reach: Refill options are now available across both modern trade (supermarkets) and general trade outlets island-wide to ensure accessibility for the mass market. • Strategic Goal: To shift consumer behavior toward a "refill instead of replace" model, embedding sustainability into everyday cleaning, laundry, and homecare routines rather than niche segments. • Economic Context: By leveraging some of Sri Lanka’s most trusted household brands, the company aims to scale plastic reduction quickly by maintaining affordability and convenience for local consumers. Based on corporate announcement data.

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NCCSL & Pan Asia Bank to Celebrate International Women’s Day 2026 📈

The National Chamber of Commerce of Sri Lanka (NCCSL), in partnership with Pan Asia Bank, will host a high-level forum tomorrow, March 10, focused on women’s leadership and economic participation. • Event Theme: "She Leads the Future: Sustainable Growth with Purpose," aligning with the UN global mandate for rights and justice for all women. • Core Focus: Advancing economic empowerment, financial independence, and sustainable leadership within the Sri Lankan business landscape. • Key Sessions: - Financial Planning: Specialized segments on wealth management for women. - Leadership & Education: Strategies to bridge the gender gap in executive roles. - Wellness & Inclusivity: Sessions hosted by Mega Life Sciences and the UNFPA on gender inclusivity and health. • Strategic Importance: The event serves as a critical platform for entrepreneurs and policymakers to foster community-building and professional advancement for women, directly impacting employment and sustainable growth. • Partnerships: Supported by a broad coalition of private sector entities, including Wijaya Products, Eswaran Brothers, and Nawaloka Hospitals, reflecting a multi-sectoral commitment to gender-equitable economic development. _Status: Event scheduled for 9.00 a.m. at the National Chamber Auditorium, Colombo._

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UN Secretary-General Outlines 8 Actions for Global Gender Equality 📈

The UN Secretary-General, marking International Women's Day 2026, identified gender inequality as the premier human rights challenge, noting that closing gender gaps can boost national income by as much as 20%. • Economic & Investment Impact Education: Every US$ 1 invested in girls' education yields nearly triple the gains. Health: Maternal health and family planning investments generate an 8x return. Growth: Policies for childcare and elder care are cited as fundamental for unlocking national economic growth. • Legal & Institutional Gaps Legal Rights: Globally, women hold only 64% of the legal rights enjoyed by men. Representation: Women comprise only 25% of the tech workforce, leading to "hardwired" bias in digital systems. Leadership: Parity in senior leadership and boardrooms is highlighted as a driver for more inclusive decision-making and stronger institutional results. • Sectoral & Social Priorities Peace & Security: Inclusion of women in negotiations (e.g., Gaza, Ukraine, Sudan) is categorized as a "shortcut" to stability. Climate Change: Advocates for gender-responsive climate policies, emphasizing that women face higher risks during food crises and displacement. Safety: Calls for "zero tolerance" for gender-based violence and the removal of barriers for girls in science and technology.

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City of Dreams Sri Lanka: Empowering Women in South Asia’s First Integrated Resort 📈

City of Dreams Sri Lanka marks International Women’s Day by highlighting the critical role of female leadership and technical expertise within the nation’s first fully integrated resort. • Strategic Inclusion: Beyond traditional hospitality roles, women are integrated into high-responsibility sectors including surveillance, gaming operations, information security, and security management. • Economic Impact: The resort model fosters broader career pathways in the tourism & entertainment sectors, providing local talent with exposure to international best practices and global standards. • Operational Excellence: The organization emphasizes a performance-driven culture, moving beyond traditional stereotypes to focus on capability, analytical thinking, and regulatory compliance. • Support Frameworks: Key initiatives include equal opportunity hiring, structured mentorship, leadership training, and robust maternity support policies to ensure sustainable career growth. • National Context: As Sri Lanka positions itself as a competitive global destination, the resort's focus on a diverse, high-performance workforce is cited as essential for long-term growth in sustainable tourism.

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### CSE and Global Partners Ring Opening Bell for Gender Equality 📈

The Colombo Stock Exchange (CSE), in partnership with the IFC, UN Women, and the UN Global Compact, held a ceremonial bell-ringing to advocate for women’s economic empowerment and leadership within the Sri Lankan corporate sector. • Current Representation: Women’s representation on CSE-listed boards reached 13.7% in 2026, reflecting a modest YoY increase from 13.4% in 2025. • Economic Impact: Leaders emphasized that unlocking women’s potential is critical for inclusive growth, poverty reduction, and job creation. Balanced leadership is linked to improved risk management and sustainable value in the private sector. • Key Sectors & Leadership: High-profile representation included leadership from Hayleys Agriculture, Aitken Spence, and the Securities & Exchange Commission. • Global Alignment: The event is part of a global initiative involving 114 exchanges aimed at dismantling barriers to women’s career growth and fostering inclusive financial markets.

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Youth-Led Circular Economy Forum Debuts in Jaffna 📈

A pioneering Circular Economy Forum is being held today (March 7) at the Arc Building in Jaffna, signaling a shift toward sustainable resource management and green technology in the Northern Province. • Event Objectives The forum aims to replace the traditional "Take-Make-Waste" linear model with a circular system where waste is repurposed as a resource. It serves as a platform to align environmental protection with economic prosperity for young entrepreneurs and undergraduates. • Key Highlights & Initiatives Organization: Spearheaded by Terra Force, a civilian movement founded in July 2025 to foster ecological balance. Sector Focus: Key themes include the sharing economy, biological regeneration, and sustainable production/services. Mentorship: Speakers from initiatives like Saho Creations, Dream Garden, and Save a Life will serve as "Founding Mentors" to help students transition "circular" ideas into viable businesses. • Economic Impact The initiative focuses on redesigning financial and resource flows to ensure long-term regional prosperity. By treating sustainability as a profitable business strategy, the forum seeks to build a registry of youth-led startups and eco-initiatives to modernize the Northern Province's industrial outlook. • Future Outlook Organizers intend to present innovative, youth-proven solutions to the Jaffna Municipal Council to support local governance through scientific environmental solutions. _Note: Information based on event launch data._

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📈 Spa Ceylon Launches ‘Her Business Matters’ to Boost Women-Led SMEs

Spa Ceylon has unveiled ‘Her Business Matters,’ a nationwide initiative timed for International Women’s Day 2026 to provide growth support and brand amplification for local female entrepreneurs. • Overall Objective: The program transitions from symbolic celebration to practical economic empowerment, targeting female founders who manufacture or produce locally in Sri Lanka to drive SME growth and employment. • Support Framework: • Brand Amplification: Five selected businesses per week will receive exposure via Spa Ceylon’s marketing channels and influencer networks throughout March 2026. • Capacity Building: Participants will attend workshops in Colombo covering social media, compliance, brand positioning, and scaling. • Strategic Partnerships: Collaboration with Simple Books (Finance/Compliance) and RoarAdX (Digital Growth) to provide technical expertise. • Selection Criteria: Applications are open through March via social media. Screening focuses on scalability, product quality, and long-term growth potential. • Economic Context: The initiative builds on the 2025 ‘Act For WIN’ campaign, leveraging Spa Ceylon’s position as a global brand (140+ locations in 30+ countries) to integrate local women-led businesses into the broader retail and wellness ecosystem.

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SLASSCOM Women in Tech 2026: Driving Diversity in the Digital Economy 📈

The ICT/BPM sector gears up for the fourth edition of the Women in Tech Conference, scheduled for March 26, 2026, at Shangri-La Colombo. Organized by the SLASSCOM Women Technopreneurs Forum, the event aligns with International Women’s Day to promote inclusive leadership. • Conference Overview: Transitioning into a full-day experience, the event builds on a consistent track record of over 300 participants per edition. • Core Focus: The 2026 theme centers on "future-ready leadership," leveraging AI and emerging technologies as catalysts for inclusion and workplace transformation. • Key Speakers: Featured keynote by Sindhu Gangadharan (MD of SAP Labs India & Nasscom Chairperson), alongside influential local policymakers and technopreneurs. • Economic Context: The initiative aims to strengthen Sri Lanka’s digital economy by enhancing Diversity, Equity, and Inclusion (DEI) commitments, which are vital for talent retention and global employer branding. • Strategic Goals: Unlocking innovation through diversity and equipping the workforce with insights into AI-driven transformation and progressive leadership. _Note: Based on official event announcement for March 2026._

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Greenpeace Calls for ‘Polluter Pays’ Action Following Cyclone Ditwah 📈

A new report by Greenpeace South Asia highlights the staggering economic and human toll of Cyclone Ditwah, urging for global climate accountability and a national loss and damage framework. • Economic Impact & Damage The World Bank estimates total economic damage at approximately US$ 4.1 Bn. Over 114,000 homes were partially or destroyed; critical infrastructure including roads, railways, and utilities faced extensive disruption. Human cost: More than 600 deaths and 2.3 million people affected by flooding and landslides. • Sectoral Disruptions Agriculture & Fisheries: Rural livelihoods and food security are severely threatened as these key sectors face long-term recovery challenges. Agrarian Debt: Experts warn that disasters exacerbate existing debt burdens for rural communities, calling for grant-based climate financing. • Climate Science & Advocacy Human-driven climate change made Ditwah’s rainfall 28% to 160% more intense. Sri Lanka contributes less than 0.1% of global emissions but bears disproportionate costs, fueling calls for the "Polluter Pays" principle against major carbon emitters. • Policy Recommendations Establishment of an independent Loss and Damage Committee to address both economic and non-economic losses (e.g., cultural and psychological). Advocacy for climate-related debt relief and restructuring to prevent further national financial vulnerability.

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UN Report Highlights Persistent Gender Gaps in Sri Lanka 📈

• Overall Legal & Social Landscape The UN identifies 67 discriminatory provisions across 28 laws affecting family, employment, and citizenship. High rates of gender-based violence persist, with 1 in 4 women experiencing intimate partner violence and 90% reporting harassment on public transport. • Economic Participation & Finance The female labour force participation rate stands at 31.6%, significantly trailing the male rate of ~70%. Unpaid care work remains a primary barrier. Additionally, women-led businesses face a massive financing gap estimated at US$ 17 Bn. • Leadership & Representation Despite comprising over 50% of the population, women hold less than 10% of parliamentary seats (22 out of 225). Representation in the Cabinet of Ministers is minimal at 8.7% (2 out of 23 positions). • Digital & Climate Vulnerabilities While 62% of women are digitally literate, only 34.6% possess computer literacy. Women also account for 58% of cybercrime complaints. In agriculture and fisheries, climate-related disasters disproportionately impact women through increased unpaid labor and disrupted maternal health access. • Summary Note Based on UN factsheet data as of March 2026. Closing these gaps requires urgent legal reforms and targeted economic empowerment to realize full gender equality.

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IESL Marks World Engineering Day 2026: Focus on Smart Engineering 📈

The Institution of Engineers, Sri Lanka (IESL) joined global celebrations for World Engineering Day on March 4, 2026, centering on the theme: "Smart Engineering for a Sustainable Future through Innovation and Digitalisation." • Key Focus Areas: The initiative emphasizes integrating digitalisation—including AI, Big Data, and Building Information Modelling (BIM)—to enhance national infrastructure planning and operational efficiency. • Strategic Objectives: • Disaster Resilience: Leveraging smart sensors and monitoring for early warning systems against floods and landslides. • Energy & Utilities: Utilizing data-driven management to optimize renewable energy integration and reduce transmission losses. • Urban Development: Applying intelligent tools to manage traffic congestion, waste, and water supply in growing cities. • Economic Impact: The IESL highlights that adopting smart engineering is critical for Sri Lanka’s economic stability, aiming to reduce project cost overruns and delays through digital modeling and innovative local solutions. • Professional Sector: As the apex body for disciplines including civil, electrical, mechanical, and ICT/BPM engineering, IESL is hosting high-level forums to align engineering expertise with national policy and sustainable development goals (SDGs).

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LOLC Divi Saviya Honored for Rapid Restoration of 200 Schools Post-Cyclone 📈

The Ministry of Education has officially recognized LOLC Holdings PLC for its "Obai Mamai Ape Ratai" initiative, which successfully restored 200 schools across Sri Lanka in just 45 days following the devastation of Cyclone Ditwah. • Rapid Recovery: The project enabled the swift resumption of education for thousands of students by repairing damaged infrastructure in 200 schools and supporting 4,000 displaced families. • Investment & Scale: Phase 03 of the Divi Saviya program involved an investment exceeding Rs. 500 million. This follows previous chapters that invested Rs. 2.5 billion to provide school supplies to 296,000 children (40% of the national student population) during the economic crisis. • Public-Private Synergy: Group CEO Kapila Jayawardena presented the progress to Prime Minister and Education Minister Dr. Harini Amarasuriya, highlighting how private sector mobilization can complement government disaster management. • Future Phase: The upcoming stage of the initiative will focus on the complete "ground-up" rebuilding and furnishing of selected schools that were entirely destroyed by the disaster. • Strategic Impact: Beyond immediate relief, these efforts stabilize the education sector—a critical pillar for long-term human capital and employment—by preventing student drop-outs during national crises.

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Uncategorized

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🚨 Sri Lanka Navy Seizes 102kg Heroin Haul in Deep Sea Operation 🚨

• Security & Maritime: The Sri Lanka Navy intercepted a multi-day fishing trawler in international waters south of the island, uncovering a significant haul of narcotics. • Key Figures: Approximately 102kg of Heroin was discovered during the targeted operation. • Impact: Such seizures are critical for maintaining regional maritime security and curbing the illicit drug trade, which can destabilize the local economy and social framework. • Status: Based on provisional data from the Navy; further investigations into the origin and intended destination of the vessel are ongoing. ---

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SLAF Marks 75th Anniversary with Strategic Air Show & Exhibition ✈️

The Sri Lanka Air Force (SLAF) commenced its 75th-anniversary celebrations at the Ratmalana Air Force Base, inaugurated by President Anura Kumara Dissanayake. The event highlights the military's evolution and its supporting role in national security and regional stability. • National Significance: Marks three-quarters of a century of operations; significant for the defense sector and domestic aerospace awareness. • Event Scope: Features a comprehensive exhibition and air display showcasing technical capabilities and equipment. • Strategic Context: Reinforces the state’s commitment to maintaining a modernized air wing, which is vital for maritime surveillance, disaster response, and humanitarian assistance within the Indian Ocean region. _Summary based on official inauguration reports._

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## 🇻🇦 President Formally Invites Pope Leo XIV to Sri Lanka

• Diplomatic Outreach: President Anura Kumara Dissanayake has issued a formal invitation to His Holiness Pope Leo XIV for an official visit to Sri Lanka, aimed at strengthening bilateral ties with the Holy See. • Official Handover: The invitation letter was delivered at the Vatican on March 2, 2026, by Minister Bimal Rathnayake during his official mission to Italy. • High-Level Engagement: The letter was presented to Monsignor Mihaita Blaj, Under-Secretary for Relations with States, marking a significant step in Sri Lanka's international diplomacy and engagement with global religious leadership. • Context: While primarily a diplomatic and state visit, such high-profile engagements often bolster Sri Lanka's international standing and can positively impact the tourism and services sectors through increased global visibility.

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## Thousands Gather for Annual Katchatheevu Feast 2026 ⛪

The annual Katchatheevu Feast concluded on February 28, 2026, marking a significant event for cross-border religious diplomacy and the local maritime economy. • Event Overview: Held on February 27 and 28, the festival saw the participation of thousands of devotees originating from both Sri Lanka and India. • Economic Impact: While primarily religious, the feast supports the informal economy and fisheries sector by fostering bilateral relations between the two nations' coastal communities. • Logistics: Based on provisional reports, the event serves as a critical point for cultural exchange, impacting regional tourism and small-scale trade during the pilgrimage period.

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## ⛈️ Landslide Red Alert Issued for Four Districts Following Heavy Rainfall

The National Building Research Organisation (NBRO) has issued a Level 3 (Red) evacuation notice effective until 8:30 a.m. today (Feb 23), following intense rainfall exceeding 150mm within 24 hours. • High-Risk Zones (Red Alert): Immediate evacuation ordered for specific areas in Kandy (Yatinuwara, Doluwa), Kegalle (Aranayaka, Mawanella, Dehiowita), Matale (Rattota, Laggala), and Ratnapura. • Extended Warnings: Level 2 (Amber) and Level 1 (Yellow) alerts remain active for Badulla, Nuwara Eliya, Galle, Kurunegala, and Monaragala as heavy rains persist. • Economic & Safety Impact: Disruptions to plantation sector logistics and rural infrastructure are likely. Residents are advised to monitor for soil cracks, leaning utility poles, and sudden water flow changes near steep slopes. • Current Status: Based on provisional data from the NBRO; disaster management officials urge strict adherence to evacuation protocols to mitigate risks of slope failures and rock falls. 📈 ---

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Major Arrest in Akuregoda Double Murder Case ⚖️

Police have arrested a 46-year-old former Army soldier in connection with the fatal shooting of a lawyer and his wife in Akuregoda. This marks a significant development in the investigation into the February 13th attack. • Suspect Profile: The individual, a resident of Beruwala, legally discharged from the Army in 2009. He was apprehended in the Ambalangoda area by the Homagama Divisional Crime Investigation Unit. • Evidence Recovered: A mobile phone allegedly used for planning or executing the crime was seized during the arrest. • Case Context: The victims were killed inside their vehicle by two gunmen in a separate car. This arrest follows the previous detention of three other suspects accused of conspiracy and assistance in the Kottawa, Athurugiriya, and Kahathuduwa areas. • Legal Proceedings: The suspect is being interrogated by the Western Province South Crime Division and will be produced before the Kaduwela Magistrate’s Court.

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35 Years Since Northern Muslim Displacement: A Path to Reconciliation 📈

A commemorative event, “Memories of the North,” was held at the Sri Lanka Girl Guides Association in Colombo to reflect on the forcible eviction of the Northern Muslim community in October 1990. The event, featuring a documentary and photography exhibition, marks a significant step in post-war reflection and coexistence. • Historical Context (1990 Displacement) Roughly 75,000 Muslims were forced to leave the Northern Province by the LTTE within 48 hours. Evictees were stripped of belongings; many left with only the clothes they wore and minimal cash (approx. Rs. 150–3,000). Displaced families from districts like Mannar, Jaffna, and Kilinochchi faced hazardous journeys by boat to Puttalam and Kalpitiya during heavy rains. • Current Resettlement Status (as of Feb 2026) Housing & Land: A critical issue remains as many families still lack permanent housing and land deeds. New Housing Phase: The government has allocated Rs. 2,726 Mn to construct 1,363 houses in the Northern Province as part of a 7,306-unit requirement. Investment: Allocation stands at Rs. 2 Mn per house, with a 6-month completion target for the first phase. • Key Reconciliation Asks Official Apology: Activists and the NECC emphasize that a formal apology is fundamental to healing. Livelihood Support: Beyond housing, there is an urgent need for ICT/BPM and agricultural integration for the younger generation to prevent further economic marginalization. Digital Archiving: Plans are underway to create a virtual archive to preserve the history of Tamil-Muslim coexistence prior to the 1990 conflict.

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Market News

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Global Oil Prices Surge Past US$ 100 Amid Iran Conflict 📈

Global energy markets have been rattled as crude prices eclipsed the US$ 100 threshold for the first time in over three years, driven by escalating conflict in the Middle East. • Market Impact: Brent Crude: Surged 16.5% to US$ 107.97 per barrel. West Texas Intermediate (WTI): Rose 16.9% to US$ 106.22 per barrel. Natural Gas: Increased by 4.6% to US$ 3.33 per 1,000 cubic feet. • Supply Disruptions: The Strait of Hormuz, accounting for roughly 20% of global oil shipments (15 million barrels/day), faces a near-total halt in tanker traffic due to missile and drone threats. Major producers including Iraq, Kuwait, and the UAE have cut production as export capacities are throttled by the conflict. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, sustained prices above US$ 100/barrel pose significant risks to Sri Lanka's trade balance and domestic inflation. Rising energy costs typically impact the manufacturing and transportation sectors, potentially increasing the cost of production for key exports like tea and apparel. • Global Outlook: Financial markets remain volatile; S&P 500 and Dow futures are pointing toward a lower opening as investors weigh the impact of higher energy costs on global consumption and inflation.

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CSE Ends Week in Red Amid Mideast Tensions 📉

The Colombo stock market concluded a volatile four-day trading week in negative territory, failing to recover from a significant mid-week plunge triggered by regional geopolitical conflict. • Overall Market Performance: The All Share Price Index (ASPI) dropped 4.34% (1,032.15 points) during the week to close at 22,701.91. The S&P SL20 followed suit, declining 4.14% (275.22 points) to finish at 6,360.75. • Sector & Stock Impact: Declines were driven primarily by index-heavyweights in the banking and diversified holdings sectors. Key laggards included JKH, HNB, SAMP, HAYL, and MELS. The capital goods sector dominated daily turnover at 31%, followed by insurance and diversified financials at a combined 29%. • Investor Activity: • Foreign Investors: Recorded a net outflow of Rs. 791.2 million for the week, with yesterday’s net selling reaching Rs. 826 million. • High Net Worth (HNW): Activity remained significant, with off-board transactions accounting for 34.6% (Rs. 1.7 Bn) of total turnover. • Top Turnover: Led by ACL (Rs. 924 Mn), CINS (Rs. 624 Mn), and HVA (Rs. 226 Mn). • Market Breadth: Negative sentiment prevailed as 160 decliners outweighed 80 gainers. Total daily turnover remained robust at over Rs. 5 Bn, despite the bearish trend.

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## 📈 Oil Prices Stabilize Despite Strait of Hormuz Risks

Fitch Ratings suggests the effective closure of the Strait of Hormuz following the Iran conflict is likely temporary, mitigating long-term impacts on energy costs and the global economy. • Market Impact & Pricing • Brent oil price forecast remains at US$ 63/bbl for 2026. • Global supply growth (2.4 MMbpd) continues to outpace demand (0.8 MMbpd). • Global inventories reached 8.2 Bn barrels at end-2025, enough to cover a 400-day halt in Strait shipments. • Supply Chain & Logistics • The Strait handles 20 MMbpd, representing 25% of global seaborne oil trade. • Key alternative routes include Saudi Arabia's 5 MMbpd East-West pipeline and UAE’s 1.5 MMbpd bypass to Fujairah. • Major importers China and India receive 50% of the volumes transiting the Strait. • Key Risks for Sri Lanka • While oversupply limits price hikes, any protracted blockage or infrastructure damage would trigger volatility. • As a net oil importer, Sri Lanka remains sensitive to "geopolitical risk premiums" affecting transportation and power generation costs. • Sector Outlook • Stability in global oil prices is a positive signal for Sri Lanka’s manufacturing and logistics sectors, potentially easing inflationary pressure on fuel-dependent industries.

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Global Market Turmoil: Oil Surges Amid Middle East Escalation 📈

• Market Overview: Global equity markets faced a severe rout this week as the U.S.-Israel-Iran conflict intensified. The MSCI Asia-Pacific index is on track for its sharpest weekly decline since 2020 (-6.6%), driven by a shift toward cash and safe-haven assets. • Energy & Inflation: Oil prices have seen a massive spike due to supply risks. Brent crude rose to approximately US$ 83 per barrel from US$ 69 just a week ago. For Sri Lanka, sustained upward pressure on energy prices typically threatens headline inflation and increases the cost of imports. • Currency & Rates: The US Dollar recorded its largest weekly gain in 16 months (+1.4%). Expectations for central bank rate cuts have been slashed as investors fear a resurgence in inflation. U.S. 10-year Treasury yields jumped 18 bps this week to 4.14%, tightening global liquidity. • Sector Impact: • Technology: High-growth stocks in Asia tumbled (South Korea's Kospi down -10.5%) as investors booked profits. • Commodities: Gold fell 3.7% weekly to US$ 5,078.88 per ounce, pressured by the stronger dollar and rising bond yields. • Economic Outlook: Analysts warn that direct infrastructure damage to Gulf producers could trigger a global recession. For emerging markets like Sri Lanka, these shifts suggest a challenging environment for debt servicing and foreign exchange stability if global funding conditions continue to tighten.

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📈 Secondary Bond Yields Hold Steady Amid Middle East Tensions

The secondary bond market consolidated yesterday with yields remaining broadly stable as investors adopted a cautious stance. Activity levels were moderate, influenced by ongoing geopolitical concerns in the Middle East. • Secondary Bond Market • 15.01.28 maturity traded at 8.95%. • 15.10.29 & 15.12.29 maturities ranged between 9.59%–9.60%. • Long-term yields: 01.06.33 at 10.50% and 15.06.35 between 10.77%–10.795%. • Total transacted volume (Bonds/Bills) for March 4: Rs. 20.40 Bn. • Money Market & Liquidity • Net liquidity surplus: Rs. 336.51 Bn. • CBSL drained Rs. 75.00 Bn via overnight repo auction at a weighted average rate of 7.57%. • Overnight call money and repo rates stood at 7.67% and 7.70%, respectively. • Forex Market • The USD/LKR spot rate closed at Rs. 311.00/311.50, slightly weaker than the previous close of Rs. 310.30/310.60. • Total USD/LKR traded volume for March 4: US$ 96.75 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._

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📈 CSE Rebound Extends for Second Session Following Record Dip

The Colombo Stock Exchange continued its recovery for the second consecutive day as value investors capitalized on price corrections following earlier panic selling linked to Middle East tensions. • Market Performance Indices ASPI: Closed at 22,833.53, up by 1.13% (+256.12 points). S&P SL20: Ended at 6,425.80, up by 1.07% (+68.14 points). • Turnover and Liquidity Total Market Turnover reached nearly Rs. 5.7 Bn with over 330 million shares traded. High Net Worth (HNW) and institutional participation were significant, notably in HNB Finance, which contributed Rs. 1.1 Bn to the day's total. • Sector Highlights Diversified Financials: Led daily turnover with a 39% share; sector index rose 1.61%. Key movers included HNB Finance (+Rs. 1.30), LCB Finance (+Rs. 1.70), and LOLC Holdings (+Rs. 12.00). Banking: The second-highest contributor (combined with Food, Beverage & Tobacco for 30% of turnover). Gains were led by Commercial Bank (+Rs. 1.75), DFCC, and NDB. Blue-chips: John Keells Holdings (JKH) and Lanka Milk Foods (+Rs. 6.80) remained top contributors to the positive momentum. • Investor Sentiment Foreign investors emerged as net buyers with a net inflow of Rs. 189.4 Mn. While retail participation remained moderate, the broader market breadth was positive, supported by a robust macroeconomic recovery and attractive valuation discounts in fundamentally sound stocks.

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CSE Milestone: CDS Accounts Surpass 1 Million Mark 📈

The Central Depository Systems Ltd. (CDS), a subsidiary of the Colombo Stock Exchange, has officially crossed the 1 million registered accounts milestone ahead of its 35th anniversary this September. • Market Expansion: The threshold reflects aggressive broad-basing of the retail investor market over the last 5 years, driven by the comprehensive digitalisation of the CSE. • Digital Adoption: Growth is attributed to tools like the CSE Mobile App and the CDS eConnect portal, which shifted the market from paperwork-heavy processes to seamless, real-time digital access. • Asset Security: Following a major dematerialisation drive, the CDS now holds 97% of listed equity and 100% of corporate debt in scripless (electronic) form, virtually eliminating risks related to physical certificates. • Diversification: Beyond its core depository role, the Corporate Solutions Unit (CSU) now manages registrar services, Initial Public Offerings (IPOs), and dividend distributions for both listed and unlisted companies. • Future Outlook: A newly formed Research and Development (R&D) unit is tasked with fostering international collaborations and adapting to global financial sector evolutions. This achievement underscores the resilience of Sri Lanka’s capital market infrastructure and its transition into a modern, investor-friendly ecosystem.

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### 📈 Global Oil Prices Surge Amid Widening Middle East Conflict

Oil prices climbed on Thursday as the U.S.-Iran war severely disrupts energy flows and forces major production cuts. • Price Movements: Brent crude rose by US$ 1.67 (+2.05%) to US$ 83.07 per barrel. WTI crude increased by US$ 1.94 (+2.60%) to US$ 76.60 per barrel. • Supply Chain Disruptions: The Strait of Hormuz, a conduit for 20% of global energy consumption, remains at a near-halt for the fifth day. Approximately 329 oil vessels are currently trapped in the Gulf. • Regional Impact: • Iraq: Cut output by nearly 1.5 million barrels per day due to lack of storage and export routes. • Qatar: Declared force majeure on gas exports; recovery to normal volumes may take at least a month. • Conflict Context: Hostilities widened following a U.S. strike on an Iranian warship off Sri Lanka. While critical infrastructure remains largely intact, J.P. Morgan notes that elevated shipping risks and logistical constraints are the primary drivers of price volatility. • Economic Outlook: Most oil fields can restart within 2-3 weeks once logistics improve, but current reservoir pressure issues in Iraq and regional storage limits remain significant hurdles for global energy markets.

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CSE Rebounds 0.60% as Bargain Hunting Offsets Record Slump 📈

The Colombo Stock Exchange (CSE) bounced back yesterday as value investors moved in to accumulate fundamentally strong shares following Tuesday’s record single-day decline. • Market Indices: The ASPI gained 0.60% (134.03 points) to close at 22,577.41, while the S&P SL20 rose 0.70% to 6,357.66. The market partially erased losses from the previous session's 1,291-point plunge triggered by Middle East tensions. • Turnover & Volume: Total turnover reached Rs. 4.7 Bn with over 171.2 million shares traded. Market breadth was positive with 157 gainers against 77 decliners. • Sector Performance: • Capital Goods: Led activity with a 32% share of turnover (Rs. 1.5 Bn). Key moves included Access Engineering (+Rs. 0.90) and ACL Cables (-Rs. 0.20). • Banking & Blue-Chips: Provided the primary upward momentum. Sampath Bank (+21.6 points) and Commercial Bank were top positive contributors to the ASPI. • Diversified Financials: Second highest turnover contributor, with the sector index rising 1.63%. • Investor Sentiment: Foreign investors remained net sellers with an outflow of Rs. 95.1 Mn. High net worth and institutional interest were noted in construction and engineering counters, though overall sentiment remains cautious due to external geopolitical developments. _Data based on market closing figures for March 4, 2026._

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📈 Global Market Volatility Amid Middle East Tensions

Global financial markets faced significant turbulence on Wednesday as escalating Middle East conflict triggered sharp equity losses and spiked energy prices, impacting inflation outlooks. • Energy & Commodities: Brent crude settled at US$ 81.18 per barrel, up nearly US$ 10 from last Friday. Gold rebounded 2% to US$ 5,193 per ounce following a sharp 4% dip. • Equity Market Plunge: Asia saw massive sell-offs with South Korea’s KOSPI suffering a record 12% single-day drop. Japan’s Nikkei 225 fell 3.6%, while Taiwan’s benchmark dropped 4.3% as investors exited the semiconductor sector. • Currencies & Yields: The US Dollar strengthened, rising 1.3% against the Yen this week. The 10-year US Treasury yield rose to 4.08%, reflecting concerns over delayed interest rate cuts. • European Recovery: After a steep two-day decline (the worst since April 2025), the STOXX 600 showed signs of stabilization, rising 1.6% in early trading. Context: For Sri Lanka, sustained high energy prices and global inflation volatility could pressure import costs and debt servicing, despite the recovery in European markets—a key destination for apparel & textiles.

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Liquidity Hits Record High as T-Bill Yields Stabilize 📈

• Money Market Liquidity: Daily net liquidity surplus surged to Rs. 403.77 Bn, crossing the 400 billion mark for the first time, up from Rs. 332.49 Bn the previous day. The Central Bank moved to drain Rs. 150 Bn via overnight and seven-day Repo auctions. • T-Bill Auction: Yields held broadly steady, ending a six-week downward streak. - 91-day: 7.63% (Unchanged) - 182-day: 7.92% (Unchanged) - 364-day: 8.23% (Slight dip of 1 basis point) The auction was notably undersubscribed, raising only Rs. 47.83 Bn (39.86%) of the Rs. 120 Bn offered. • Secondary Bond Market: Activity remained healthy with a transacted volume of Rs. 15.96 Bn. Yields on the short end edged up slightly, while longer-dated maturities consolidated, with the 01.06.33 bond trading at 10.50%. • Forex Market: The USD/LKR spot rate closed slightly weaker at 310.30/310.60, compared to the previous close of 310.10/310.30. Total traded volume stood at US$ 100.90 Mn. _Note: Based on provisional market data from Wealth Trust Securities and CBSL._

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February National Tea Sales Average Declines Slightly 📈

Sri Lanka’s tea industry saw mixed results in February 2026, with the national average experiencing a marginal dip compared to both the previous month and the prior year. • Overall National Average: Recorded at Rs. 1,152.11 (US$ 3.72), reflecting a month-on-month (MoM) decrease of Rs. 12.43 (US$ 0.04) from January 2026. On a year-on-year (YoY) basis, the average fell by Rs. 16.82 (US$ 0.24) against February 2025. • High Grown Sector: Remained a bright spot, posting an increase of Rs. 15.90 (US$ 0.06) MoM. It also outperformed last year's figures with a YoY gain of Rs. 53.31. • Medium Grown Sector: Experienced a negative variance, dropping by Rs. 6.03 (US$ 0.02) MoM. The YoY decline was more significant, falling by Rs. 46.91 (US$ 0.31). • Low Grown Sector: Noted the sharpest decline for the month, dropping by Rs. 26.38 (US$ 0.08) MoM. Compared to January 2026, the sector showed a negative variance of Rs. 30.25 (US$ 0.28). _Source: Forbes and Walker Ltd. (Provisional Data)_

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Industry & Sector News

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📈 Sri Lanka Banking Sector Profits Surge 19.3% in 2025

The Central Bank of Sri Lanka (CBSL) reports a robust performance for the banking industry, with Profit After Tax reaching Rs. 369 Bn for the year ending December 2025. • Financial Performance: • Profit After Tax: Rs. 369 Bn (↑ 19.3% YoY) • Net Interest Income: Rs. 1.02 Tn (↑ 11.7% YoY) • Non-Interest Income: Rs. 275 Bn (↑ 49.8% YoY) • Operating Expenses: Rs. 493.4 Bn (↑ 10.3% YoY) • Balance Sheet & Lending: • Total Assets: Rs. 24.9 Tn (↑ 12.4% YoY) • Net Loans & Receivables: Rs. 12.9 Tn (↑ 23% YoY) • Total Deposits: Rs. 20 Tn (↑ 11% YoY) • Key Stability Indicators: • Return on Equity (ROE): 16.7% (vs 16.6% in 2024) • Credit-to-Deposit Ratio: 69.9% (indicating a conservative lending stance) • Impairment for Loans: Significantly declined to Rs. 59.4 Bn. The data reflects a liquid and cautious banking sector, maintaining comfortable buffers while gradually expanding private sector credit. Despite the profit growth, banks retain a high share of funds in liquid investments rather than full loan deployment. (Based on provisional CBSL data).

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### 📈 Rubber Industry at a Crossroads Amid Structural Stress

Sri Lanka’s rubber sector faces a critical period as escalating costs, policy shifts, and biological threats challenge its long-term viability. Based on 2026 data, the industry risks structural decline without immediate intervention. • Overall Export Performance Total export earnings fell to ~US$ 945 Mn in 2025, a 6% contraction from US$ 1.01 Bn in 2024. Tyre and value-added segments were hit by US tariffs, affecting a market that yields one-third of total revenue. • Domestic Policy & Market Shocks The removal of the Simplified VAT (SVAT) system caused a liquidity crisis; buyers now face 18% upfront VAT. Auction prices for top-grade crepe rubber plummeted to Rs. 800/kg, down from over Rs. 1,300/kg previously. Labor costs rose further in 2026 following a 15% wage hike, squeezing margins for plantations. • Production & Biological Constraints Pestalotiopsis leaf disease has persisted for 8 years, slashing yields by up to 40% in affected areas. Acute shortage of skilled tappers and an aging workforce are driving a decline in latex output. Smallholders are increasingly abandoning rubber for faster-return crops like tea, cinnamon, and pepper. • Regulatory Outlook EU Deforestation Regulation (EUDR) compliance is now postponed to late 2026. While RPCs are well-prepared with GIS mapping, the sector requires state support for digital traceability and replanting subsidies to remain competitive against low-cost producers like Vietnam and Thailand. _Note: Figures based on provisional 2025/2026 industry data._

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## 📈 Empowering Women Farmers: Sri Lanka’s 2026 Rural Agenda

The UN has declared 2026 as the International Year of the Woman Farmer, highlighting a critical shift from simple representation to active decision-making power for women in Sri Lanka’s agriculture and plantation sectors. • Current Landscape Women perform the bulk of planting, harvesting, and processing but remain underrepresented in leadership and underpaid. The sector faces "access gaps" in land tenure, formal finance, and technical extension services tailored to women's schedules. • Proven Impact of Modernization Data from FAO-supported initiatives (funded by Australia, Canada, EU, and UK) demonstrate high returns on targeted investment: Seed Paddy & Onion Production: Technical rain shelters and GAP training helped farmers like Malani Senehelatha and Priyanthi Kumari Ekanayake boost profitability and secure supermarket linkages. Yield Optimization: Modern equipment and training transformed quarter-acre plots into the equivalent yield of full acres. Climate Resilience: Adoption of climate-smart practices has proved vital for household food security during economic shocks. • Strategic Priorities for 2026 Accessible Training: Rescheduling extension services to respect care responsibilities and increasing the use of women trainers. Financial Inclusion: Implementing group-based financing and targeted guarantees to bypass traditional collateral barriers. Market Power: Moving women into higher-value segments of the value chain with better control over pricing and contracts. Data Accountability: Using gender-disaggregated data to track who actually receives credit, training, and services. • Economic Context National food security and rural resilience depend on transitioning women from "symbolic seats" in farmer organizations to roles with genuine agenda-setting authority.

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### Middle East Conflict Hits SL Shipping Routes 🚢

The Sri Lanka Shippers’ Council (SLSC) has warned of significant disruptions to global trade as escalating geopolitical tensions between the US, Israel, and Iran impact maritime corridors. • Operational Impacts: Shipping lines have begun adjusting schedules, suspending specific routes, and rerouting cargo to unintended ports. This has created a "severe burden" for exporters and importers due to rising storage and re-shipping costs. • Cost Escalation: Carriers are already imposing risk-related surcharges. Prolonged instability is expected to drive up freight costs and cause significant transit delays for the island nation. • Sector Concerns: As a maritime-dependent economy, Sri Lanka’s logistics and trade sectors are highly sensitive to these shifts. The SLSC emphasized that safe and open international shipping routes are critical for national commerce. • Strategic Response: Chairman Trisherman Frink called for urgent cooperation between the government, port authorities, and the private sector to mitigate supply chain risks and ensure the continued flow of trade. The council remains in close contact with international industry bodies to monitor the evolving situation and support the local trade community. 📈

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📢 CMTA Urges Informed Choices in Sri Lanka’s Vehicle Market 🚗

The Ceylon Motor Traders’ Association (CMTA) has issued a directive advising consumers to prioritize brand-new vehicles over used imports to ensure long-term value and safety. • Pricing & Volatility: The used vehicle market lacks a regulated pricing structure, leading to markups based on speculation. In contrast, authorized agents offer transparent, fixed pricing frameworks, varying only with currency exchange rates and import duties. • Safety & Technical Specs: Brand-new vehicles are "tropicalized" specifically for Sri Lankan conditions, including specialized air conditioning, suspension systems, and engine calibrations suited for local fuel quality and roads. • Governance & Risks: CMTA highlights widespread malpractices in the used sector, including under-invoicing, misdeclaration, and VAT-free trade-ins. Buying from authorized agents mitigates legal and financial risks through transparent documentation and manufacturer warranties. • After-Sales & Infrastructure: Authorized agents invest heavily in specialized diagnostic tools and technician training. Benefits include guaranteed genuine spare parts and 24-hour roadside assistance, which enhances the resale value and market credibility of the automotive sector. Verdict: The CMTA emphasizes that choosing brand-new imports supports ethical trade and ensures the long-term reliability of Sri Lanka's transport infrastructure.

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🎬 US Blockbusters "The Bride" and "Hoppers" Debut in Sri Lanka

Two major Hollywood releases have officially entered the Sri Lankan entertainment and cinema market, screening across seven premium venues. This expansion highlights the steady demand for international content within the local hospitality and leisure sector. • Key Screening Locations: The films are currently showing at Kandy City Centre, SCOPE Cinema (Colombo City Centre & Havelock City Mall), PVR Cinema, Ram Cinema, Lite Cinemas, and Regal Cinemas. • Featured Productions: The Bride: An American Gothic romance directed by Maggie Gyllenhaal, starring Christian Bale and Jessie Buckley. The film represents high-budget international distribution reaching the local market. Hoppers: A 2026 science fiction comedy from Pixar Animation Studios. Its release underscores the importance of the family-oriented media and animation segment in driving domestic cinema footfall. • Economic Context: The simultaneous release across multiple high-end malls (Havelock City, CCC) reflects the ongoing integration of retail and entertainment infrastructure, which remains a key driver for urban consumer spending in Sri Lanka. _Note: Screening schedules are based on current theater listings as of March 07, 2026._ 📈

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Middle East Conflict Risks US$ 10-15M Weekly Loss for Ceylon Tea ☕📈

The ongoing military conflict in the Middle East has severely disrupted tea exports, with industry experts estimating a potential revenue loss of US$ 10 million to US$ 15 million per week due to logistical barriers and war risks. • Regional Impact: Approximately 52% of Sri Lanka’s tea exports are destined for the Middle East, a region that imported 125 million kg valued at US$ 750 million in 2025. Key markets include Iraq, Iran, Libya, Turkey, Saudi Arabia, Syria, and the UAE. • Supply Chain Disruptions: Major shipping lines have suspended services or hiked freight charges by US$ 1,800 to US$ 3,000 per container. Supply routes through the Strait of Hormuz and Suez Canal are largely avoided due to invalidated insurance and high war risks. • Economic Consequences: • Auction Prices: Overall prices dropped by Rs. 50/kg this week; low-grown tea (dominated by smallholders) fell by Rs. 75/kg. • Barter Deal: 95% of the "Tea for Oil" debt to Iran is settled, but further exports face uncertainty under US sanctions without a new mechanism. • Export Growth: Despite a 5% YoY increase in January 2026 (US$ 121.8 million), March figures are expected to decline sharply. • Industry Request: The Tea Exporters Association has urged the government to address cash flow constraints, subsidize freight/insurance costs, and recover US$ 50 million in pending payments from Iran.

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📈 Middle East Aviation Disruption: Risks to Regional Hubs and Costs

The recent escalation in the Middle East following military actions on February 28 has triggered severe aviation disruptions. While Fitch Ratings maintains a baseline expectation of a conflict lasting less than a month, prolonged instability poses significant risks to regional connectivity and operational costs. • Operational Impact: Between Feb 28 and March 5, over 15,000 flights were cancelled across seven major regional hubs, affecting approximately 1.5 million passengers. Major hubs including Dubai, Abu Dhabi, and Doha are experiencing heavy congestion and schedule volatility. • Sector Vulnerabilities: Airlines: Carriers in the UAE and Qatar face the highest exposure. Revenue losses are compounded by rising operating costs due to rerouting, crew overtime, and additional technical stops. Fuel & Insurance: Although EMEA carriers have 50% to 80% fuel-hedging coverage for the next quarter, prolonged conflict may pressure unhedged costs. War risk insurance may see reduced coverage or hiked premiums for Gulf-heavy portfolios. Tourism & Lodging: Global providers remain diversified, though localized impacts on hospitality and retail spending at airports are expected. • Economic Context: For a diversified economy like Sri Lanka, which relies on these Middle Eastern hubs for apparel & textiles exports and labor migration routes, extended disruptions could increase logistics costs and affect transit efficiency for the ICT/BPM and tea sectors. _Status: Based on Fitch Ratings provisional impact assessment._

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📈 Global Rare Earth Dominance: Strategic Risks for Sri Lanka's Tech Ambitions

The latest analysis highlights the intensifying battle between the US and China over critical minerals, a shift with significant implications for global supply chains and emerging ICT/BPM hubs like Sri Lanka. • Global Market Share: China currently controls 65% of global mining capacity and a dominant 91% of the refining process for rare earth oxides. • Downstream Manufacturing: China produces 94% of the world’s sintered magnets, which are essential components for consumer electronics, electric vehicles (EVs), and renewable energy (wind turbines). • Strategic Vulnerabilities: Western nations face a 4–5 year lag in establishing domestic refining capacity due to high labor costs, energy inputs, and environmental regulations. • Economic Outlook: The shift toward "friend-shoring" and supply chain diversification is expected to accelerate. For Sri Lanka, this underscores the importance of the ICT/BPM and electronics sectors aligning with trusted global partners to mitigate risks associated with mineral monopolies. • Future Drivers: Technological innovation in processing and government-backed private sector agility are identified as the only viable paths to breaking the current supply chain grip.

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📉 Tourism Outlook: Record Growth Hit by Middle East Volatility

Sri Lanka’s tourism sector faces sudden uncertainty following the conflict in the Middle East, threatening to disrupt the momentum of a record-breaking start to 2026. • Record Performance: February 2026 saw the best-ever arrival figures with 253,293 tourists, surpassing the previous 2025 peak (240,217) and 2018 (235,618). • Growth Drivers: Gains were driven by the hospitality and retail boost from the England Cricket Team tour (Barmy Army) and the ICC T20 World Cup, attracting high-spending European travelers. • Logistical Disruptions: Over 60% of high-spending Western tourists transit through Gulf hubs like Dubai and Doha. To date, 115 flights between Sri Lanka and the Middle East have been cancelled due to airspace closures. • Economic Risk: The conflict jeopardizes the national target of 3 million arrivals for 2026. Increased fuel costs and rerouting are expected to hike airfares, deterring long-haul travel. • State Response: The Government has granted a free two-week visa extension for stranded visitors. Authorities are urged to ensure the hotel and leisure industry avoids price exploitation during this crisis. • Regional Impact: Nearby Maldives warns of a potential 35% drop in arrivals if disruptions persist, highlighting a broader threat to South Asian travel & leisure markets.

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## 📈 SL Explores Oil Imports from Africa & US Amid Middle East Unrest

The Sri Lankan Government is seeking alternative short-term sources for crude oil and refined petroleum products to mitigate supply risks from escalating Middle Eastern tensions. • Diversification Strategy: Exploring procurement from Africa and the US to shift reliance from traditional suppliers in India, Singapore, Malaysia, and South Korea. • Price Stability: Current purchases are primarily managed via term tenders rather than spot markets, providing a buffer against immediate global volatility. • Fuel Pricing: Cabinet Spokesman Dr. Nalinda Jayatissa stated that immediate price revisions are difficult to forecast due to geopolitical uncertainty; the government aims to minimize consumer impact. • Energy Security: The move reflects a proactive shift toward energy diversification to ensure national supply continuity during regional conflicts in the Gulf.

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### ✈️ UAE Airspace Closure: Dubai Mandates Hotel Support for Stranded Travelers

Authorities in Dubai have moved to mitigate the impact of regional airspace closures on the tourism and aviation sectors as thousands remain stranded due to the ongoing US-Israel-Iran conflict. • Government Intervention: The Dubai Department of Economy and Tourism (DET) has directed hotels to facilitate stay extensions for impacted guests. Notably, the UAE government has committed to covering all accommodation and sustenance costs for stranded passengers. • Visa & Logistics Support: Over 15,000 emergency visas have been issued to transit passengers and tourists. This proactive measure aims to maintain Dubai's reputation as a resilient global travel hub during periods of severe disruption. • Aviation Recovery: Following a period of total closure, an air corridor has been established allowing 48 flights per hour. Emirates and flydubai have commenced a phased restoration of services as of March 2 to clear passenger backlogs. • Economic Context: While the situation is driven by regional instability, the UAE is leveraging its private sector—specifically the hospitality industry—to ensure service stability and minimize long-term damage to its tourism brand. _Source: Dubai DET / Khaleej Times (Provisional Data)_ ---

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Global & International Business

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📈 Govt. & CEOs Align on New National Export Roadmap

The Government of Sri Lanka and private sector leaders have initiated a strategic collaboration to overhaul the country's export trajectory following the "National Export Roadmap: The CEO Forum" held at the EDB. • Strategic Direction: The forum established a unified framework between policymakers and corporate heads to review 2025 performance and set aggressive growth targets for 2026 and beyond. • State-Led Investment: The Ministry of Industries and Entrepreneurship Development committed to acting as the "main investor" in the industrial ecosystem. Key priorities include modernizing industrial zones, streamlining power supply, and expanding technical facilities to boost manufacturing competitiveness. • Public-Private Partnership: Officials emphasized that sustainable economic progress hinges on collective contribution, aiming to empower exporters and entrepreneurs to expand Sri Lanka’s global footprint. • Key Sectors: While specific revenue data remains provisional, discussions focused on accelerating growth in high-potential industries to boost national export earnings and strengthen Sri Lanka's position in global trade.

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### 📈 Sir Mark Tucker to Address SLID Forum on Sri Lanka’s Capital Strategy

Sir Mark Tucker, Chairman of AIA Group and former HSBC Holdings Group Chairman, will deliver a keynote address in Colombo titled “Reconnecting to Capital, and Repositioning Sri Lanka in a Fragmenting World.” • Event Details: Organized by the Sri Lanka Institute of Directors (SLID), the forum is scheduled for Tuesday, 10 March 2026, at the Port City Colombo Sales Gallery. • Economic Context: Focuses on financial markets, capital reintegration, and navigating global fragmentation—critical areas for the recovery of the banking & finance and insurance sectors. • High-Level Panel: Following the keynote, a discussion will feature former Central Bank Governor Indrajit Coomaraswamy, targeting insights into monetary policy and investment strategy. • Leadership Representation: The session will be moderated by CEOs from Commercial Bank and AIA Insurance Lanka, highlighting the engagement of top-tier ICT/BPM and corporate leadership in national economic repositioning.

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## 📈 Renewed India-SL Trade Pact to Drive Export Surge

A modern trade framework with India is essential to transition Sri Lanka from a 20th-century product mix to a strategic player in global supply chains. While India is the largest trading partner, a significant trade imbalance persists, necessitating a shift toward high-value industrial investments. • Key Trade Figures Over 60% of current exports to India utilize the India-Sri Lanka Free Trade Agreement (ISFTA). Despite this, a massive gap exists: Vietnam exports more to China in one week than Sri Lanka does to China in five years, highlighting the urgent need for supply chain integration. • Strategic Sector Opportunities Manufacturing & Electronics: Potential to move beyond assembly to supplying insulated wires, cables, and rubber components as intermediate goods for Indian industry. Spices & Agri-products: While traditional exports remain a staple, the focus must shift to non-traditional, higher-value manufactured goods. ICT/BPM & Services: A renewed Economic and Technology Cooperation Agreement (ETCA) aims to open doors for service-led growth and technology transfer. • Economic Impact & Barriers FDI Attraction: Preferential access to India’s 1.4 billion market makes Sri Lanka a competitive base for export-oriented foreign investment, boosting employment. Regulatory Hurdles: Current growth is limited by narrow product concessions, restrictive tariff quotas, and extensive negative lists. Value Addition: Existing rules require a minimum of 25% Domestic Value Addition (DVA) to qualify for preferential tariffs, providing a baseline for deeper industrial integration.

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## 📈 Sri Lanka Engages at Raisina Dialogue 2026 in New Delhi

Foreign Affairs Minister Vijitha Herath represented Sri Lanka at the 11th edition of the Raisina Dialogue on March 5, 2026, reinforcing bilateral ties with India. • Core Engagement: The visit emphasized the "longstanding relationship" between the two nations, focusing on diplomacy, trade, and strategic collaboration. • Global Context: The forum, themed "Saṁskāra – Assertion, Accommodation, Advancement," addressed the rising influence of the Global South in the future global order. • Key Highlights: • Inaugurated by Indian PM Narendra Modi with a keynote by Finnish President Dr. Alexander Stubb. • Discussions centered on regional stability and people-to-people connections. • Participation reflects Sri Lanka’s commitment to regional geopolitics and economic integration within South Asia.

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### 🇹🇭 Thailand Week 2026: Strengthening Sri Lanka-Thai Trade Ties

The sixth edition of ‘Thailand Week 2026’ officially opened at Havelock City Mall, Colombo, serving as a strategic platform to enhance bilateral economic relations and consumer access to premium Thai goods. • Event Overview The three-day trade and cultural fair (March 6–8) is organized by the Thai Trade Centre Chennai and the Royal Thai Embassy, in collaboration with Sri Lanka’s Ministry of Development Strategies and International Trade. • Key Business Participation 30 Thai companies are showcasing over 100 high-quality products directly to the Sri Lankan market. Featured sectors include Food & Beverage, Spa & Wellness, Cosmetics, and Household items. Specific focus on instant Thai seasonings, noodles, biscuits, and herbal massaging oils. • Economic Impact & Networking The event facilitates direct B2B networking, allowing Sri Lankan entrepreneurs to establish new dealerships and long-term trade partnerships. Emphasizes quality and sustainability in trade as a driver for market diversification. Siam House Restaurant received the ‘Thai SELECT’ logo, the first in Sri Lanka recognized for authentic culinary identity, highlighting the growing hospitality and services synergy. • Cultural Integration The fair combines commercial opportunities with traditional Thai dance and Muay Thai performances to drive foot traffic and consumer engagement. Entrance is free to the public. _Source: Based on event proceedings, March 2026._

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Sri Lanka High Commission Hosts Port City Investor Forum in Australia 📈

The Sri Lanka High Commission in Canberra, in partnership with CHEC Port City Colombo (Pvt) Ltd, convened a strategic Investor Forum on March 3, 2026, to attract Australian capital into South Asia’s premier multi-services special economic zone. • Key Focus: The forum highlighted the transformative potential of the Colombo Port City, showcasing its competitive regulatory framework designed to attract global investment. • Strategic Partnerships: Deputy Managing Director Thulci Aluwihare delivered a comprehensive presentation on investment opportunities, emphasizing the project's role in regional development. • High-Level Attendance: The event was attended by senior Australian officials, including the Department of Foreign Affairs and Trade (DFAT), the Australian Institute of Company Directors (AICD), and the Canberra Business Chamber. • Regional Engagement: Representatives from key Australian business hubs, including Canberra, Melbourne, and Sydney, participated, signaling a growing interest in Sri Lanka’s specialized investment zones. High Commissioner Yasoja Gunasekera underscored that the project is envisioned as a world-class hub, offering one of the most attractive regulatory environments in the South Asian region to drive economic diversification and foreign direct investment.

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### 📈 Impact of Middle East Conflict on Sri Lanka

Recent regional escalations under the Netanyahu-Trump dynamic pose significant indirect risks to Sri Lanka’s economic stability, primarily through supply chain disruptions and tourism. Key Economic Indicators & Trade • Tea Barter with Iran: US$ 62.14 Mn arrangement remains active despite low additional trade (Exports: US$ 5 Mn; Imports: US$ 2.4 Mn). • UAE Relations: 7th largest export destination at US$ 334.63 Mn; imports reach US$ 1.29 Bn, mainly sugar and bakery products. • Saudi Arabia: Exports total US$ 115.42 Mn, dominated by tea (US$ 72 Mn) and fruit & vegetables (Bananas: US$ 7 Mn). Sectoral Breakdowns • Tourism: High risk as Gulf "super-connector" airlines—carrying 25% of all passengers and 40% of European/Russian tourists—face operational hubs closures. • Energy & Agriculture: Rising costs for petroleum and fertilizer are expected. Sri Lanka imports US$ 55 Mn+ in fertilizer from Saudi Arabia, Qatar, Jordan, and Bahrain. • Labor Migration: Over 600,000 workers stationed in the UAE (350k) and Saudi Arabia (246k) are within the broader theater of conflict. Strategic Vulnerabilities • Strait of Hormuz: Critical for global commodities; 31% of urea and 18% of ammonia pass through, threatening local agricultural input prices. • Infrastructure: Conflict highlights the need for diversification in ICT/BPM (undersea cables) and aviation hubs to mitigate "single-point-of-failure" risks. _Summary based on provisional 2024/2026 data and current geopolitical events._

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### Sri Lanka–BELGOLUX Business Evening Boosts Investment Ties 📈

The Embassy of Sri Lanka in Belgium and the BELGOLUX–Sri Lanka Business Council (BLSBC) hosted a high-level networking event in Brussels on 24 February 2026 to strengthen economic partnerships with Belgium and Luxembourg. • Key Highlights & Strategic Focus: The event engaged over 55 Belgian companies and entrepreneurs, focusing on Sri Lanka’s evolving economic landscape and its strategic position within the EU trade framework. • Sector Opportunities: Discussions centered on high-growth areas including ports, logistics, tourism, and hospitality. The BLSBC was positioned as the primary institutional mechanism to facilitate these commercial ties. • Upcoming Trade Mission: A Belgian and Luxembourgish business delegation is scheduled to visit Sri Lanka from 17-21 June 2026. The mission will feature: Participation in Sri Lanka Expo 2026. Targeted B2B meetings and institutional engagements. Site visits to the Colombo Port City and other sector-specific hubs. • Outcome: The session saw strong interest from Belgian investors in the upcoming June mission, reflecting increased confidence in Sri Lanka’s structured investment models and the trade potential of the ICT/BPM and logistics sectors.

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### Strategic Analysis: The Decapitation Paradox in Modern Warfare (2026) 📈

This scenario analysis explores why traditional "leadership strikes" are failing against modern, decentralized sovereign systems, shifting the focus from individual targets to distributed architectures. • The Structural Shift: Traditional 20th-century "great man" doctrines assumed removing a leader triggers institutional collapse. In 2026, military command has evolved from a "vertebrate" model (central brain) to a "nervous system" architecture (distributed nodes), making systems nearly impossible to dismantle via surgical strikes. • Economic Attrition & Technology: Asymmetry: Low-cost autonomous tools (approx. $20,000) vs. high-cost interceptors ($2M+) create a "kinetic exhaustion" trap. Logistics: The defense of global supply chains becomes structurally unsustainable under saturation waves of inexpensive munitions. • Key Risks for Global Markets: Escalation Control: Removing a central leader deletes the "stop button," as no one remains with the sovereign authority to negotiate a ceasefire. Chokepoint Vulnerability: Automated retaliatory triggers often target critical corridors like the Suez Canal, potentially triggering global economic shocks. • National Resilience: For a high-employment, trade-dependent economy like Sri Lanka, the analysis underscores that sovereignty now depends on "intellectual survivability"—distributing ICT/BPM infrastructure and institutional C2 to avoid a single point of failure. _Note: Analysis based on strategic scenario data as of March 2026._ ---

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US-Japan $550 Bn Investment: Nuclear Power & Copper Projects Eyed 📈

• Energy & Infrastructure: Japan and the US are negotiating to include a massive nuclear power project in the second round of a $550 billion investment package. The deal involves Westinghouse (owned by Cameco and Brookfield) and aims to strengthen energy supply chains amid Middle East tensions. • Investment Scale: Westinghouse is exploring pressurized water and small modular reactors totaling up to US$ 100 Bn. This follows a previous US$ 80 Bn US government partnership with the firm to meet rising energy demand from AI data centers. • Industrial Expansion: A US$ 2 Bn copper smelting and refining facility by Falcon Copper is also under consideration. This project seeks involvement from Japanese suppliers and off-takers, highlighting a push for mineral supply chain security. • Strategic Context: Tokyo is accelerating deals to fulfill investment commitments under a US tariff agreement. To date, three projects valued at US$ 36 Bn (including an Ohio natural gas plant) have been announced. • Key Players: Potential involvement includes Japanese giants Mitsubishi Heavy Industries, Toshiba, and IHI. Official announcements are expected during Prime Minister Sanae Takaichi’s visit to Washington on March 19. _Summary based on provisional reports and ongoing bilateral negotiations._

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CB Governor Joins IMF Chief for High-Level Asia Policy Dialogue 📈

Central Bank Governor Dr. P. Nandalal Weerasinghe will represent Sri Lanka at the Asia in 2050 conference in Bangkok, joining global financial leaders to discuss regional growth and stability. • High-Level Roundtable: Scheduled for Friday, March 6, the session "Bringing Everything Together – Policy Challenges for Asia Going Forward" features IMF Managing Director Kristalina Georgieva and finance ministers from Malaysia and Thailand. • Regional Context: The dialogue focuses on Asia’s long-term growth prospects, emerging risks, and policy innovation, highlighting Sri Lanka's engagement in regional financial stability and economic collaboration. • Strategic Precursor: This event serves as a lead-up to the 2026 IMF and World Bank Group Annual Meetings (October 12–18), where global leaders will deliberate on poverty reduction, inclusive growth, and job creation. • Key Participation: The Governor's presence underscores Sri Lanka's continued involvement with the IMF and international partners as the nation navigates its long-term economic recovery and policy framework.

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### 📉 Oil Shock Risks: Sri Lanka Among Most Vulnerable EMs

Analysts warn that the escalating conflict in Iran and potential closure of the Strait of Hormuz could push Brent prices above $100, straining emerging market (EM) stability beyond simple inflation. • Global Market Impact Brent crude surged 7.2% to $83.36/bbl, hitting its highest level since July 2024. Goldman Sachs estimates a supply-driven jump to $85 adds 0.7% to inflation and cuts 0.5% off economic growth across emerging Asia. • External Sector Pressures A 10% rise in oil prices typically deteriorates current account balances by 40-60 basis points. Prolonged high prices threaten to "aggressively de-anchor" inflation expectations and widen deficits globally. • Specific Risks for Sri Lanka Citigroup identifies Sri Lanka, alongside Argentina and Pakistan, as a "low-reserve country" facing heightened risks. Key threats include: • Potential for significant currency slides. • Increased risk of capital outflows. • Pressure on external balances due to high energy import costs. • Regional Context While India is flagged for thin reserves, countries like Thailand and South Korea are noted for high exposure to current account deterioration. Investors are shifting toward the safe-haven US$ as EM equity and currency indexes hit three-week lows.

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Politics & Government Impact

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## SL Missions Monitor West Asia Tensions; Injured Nationals Safe 📈

The Ministry of Foreign Affairs, Foreign Employment and Tourism is closely tracking regional stability to ensure the safety of nearly one million Sri Lankans working across the Middle East. • Status of Nationals: All four Sri Lankans previously injured in recent attacks have been discharged from hospitals. Officials confirmed three are recovering well; contact is being established with the fourth. • Government Response: An Emergency Response Unit (ERU) has been established to coordinate safety measures and assist both Sri Lankans abroad and foreign nationals in Sri Lanka affected by the crisis. • Economic Context: The region is a critical hub for foreign employment and remittances, which are vital for Sri Lanka’s foreign exchange liquidity and household stability. • Diplomatic Stance: The Government has called for restraint and a peaceful resolution to safeguard civilian lives and maintain regional stability.

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US Forces Issue Urgent Safety Warning to Iranian Civilians ⚠️

The US Central Command (CENTCOM) has issued a critical safety advisory for civilians in Iran, citing the Iranian regime's use of densely populated areas for military operations. • Military Activity: The Iranian regime is reportedly utilizing cities such as Dezful, Esfahan, and Shiraz to launch ballistic missiles and one-way attack drones. • Legal Implications: CENTCOM noted that under international law, civilian locations used for military purposes lose their protected status and may become legitimate targets. • Regional Impact: Since February 28, Iran has launched hundreds of missiles and thousands of drones, targeting civilian infrastructure including airports, hotels, and residential neighborhoods across the Middle East. • Operational Status: While launch rates have "drastically declined" due to US and partner interventions, CENTCOM urges civilians to stay at home as they cannot guarantee safety near regime-controlled military facilities. Based on official CENTCOM statements as of March 9, 2026.

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Headline: National Defence Must Evolve Beyond Political Rhetoric 📈

A recent analysis of Sri Lanka’s security discourse highlights a concerning trend of treating national defence as casual political banter rather than a complex strategic necessity. In an increasingly volatile global environment, the shift toward a "Total Defence" model is deemed essential for economic and sovereign stability. • Strategic Context & Risks: Sri Lanka’s position near major East-West shipping lanes makes it a focal point for global power interactions. The report warns that the margin for error is narrow, as regional naval confrontations can quickly impact local waters. • Modern Defence Framework: Modern security has moved beyond traditional military force to include: Economic Resilience: Protecting financial systems from external coercion. Cyber Security: Safeguarding technological infrastructure against hybrid threats. ICT/BPM & Infrastructure: Ensuring the continuity of essential digital and physical services during crises. • Institutional Discipline: The report cites Singapore’s "Total Defence" doctrine as a benchmark, where national strength is built on the unity of government institutions, social cohesion, and strict adherence to international law. Adhering to maritime conventions and diplomatic norms is framed as a tool to prevent Sri Lanka from becoming "unnecessarily entangled" in major power rivalries. • Conclusion: Effective national defence requires moving beyond slogans toward informed judgment and institutional discipline to protect the state’s sovereignty and its employment and economic sectors.

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⚖️ Bribery Commission Files Corruption Charges Against Power Minister

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has filed formal indictments in the Colombo High Court against current Power Minister, Kumara Jayakody, involving alleged financial misconduct during his previous tenure in the state sector. • Case Origin: The charges date back to 2016, during the Minister's term as Deputy Procurement Manager at the state-owned Lanka Fertilizer Company Limited. • The Allegation: The Minister is accused of facilitating an unlawful benefit to a private entity regarding a contract for supplying carpets to the company's warehouse premises. • Financial Impact: Investigators state the procurement decision caused a financial loss to the Government exceeding Rs. 8.8 million. • Legal Framework: The case is filed under Section 70(a) of the Bribery Act, categorized as an offense of corruption. The indictments have been submitted to the Colombo High Court for further legal proceedings.

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SLTDA Hosts Goodwill Brunch for Stranded Tourists Amid Regional Crisis 📈

The Sri Lanka Tourism Development Authority (SLTDA) has launched a support initiative for foreign visitors stranded in the country due to ongoing Middle East flight disruptions and airport closures. • Support Measures: The government has implemented several relief actions, including a 14-day free visa extension and logistical coordination with airlines to assist affected travelers. • Hospitality Initiative: A special brunch was hosted at the SLITHM Monara Restaurant as a gesture of "warmth and generosity" to reassure guests whose return journeys were delayed by airline suspensions. • Key Services: A dedicated 24-hour tourist assistance hotline (1912) remains active to provide real-time information and support for international visitors. • Strategic Impact: SLTDA Chairman Buddhika Hewawasam emphasized that the move reinforces Sri Lanka’s reputation as a responsible and welcoming destination within the global tourism sector, prioritizing visitor safety and welfare during unforeseen global disruptions.

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PM Rejects Claims of Repression; Emergency Regulations Cited for Disaster Recovery 📈

• Context: Prime Minister Dr. Harini Amarasuriya dismissed Opposition allegations that emergency regulations are being used for political repression, challenging critics to provide specific evidence of unfair arrests or suppression over the last three months. • Democratic Rights: The Government maintains that no restrictions have been placed on the right to protest or criticize leadership. It was noted that despite strong criticism in media and social platforms, no punitive actions have been taken against dissent. • Infrastructure & Essential Services: The regulations are primarily positioned as a legal framework to restore normalcy following a recent disaster. Key focus areas include: • Ensuring the functionality of transport infrastructure (roads and railway lines). • Restoring the education sector (school systems). • Maintaining essential public services without disruption. • Reconstruction Strategy: The Government intends to deploy tri-forces for rebuilding damaged assets using "scientific methods" to enhance climate resilience. A special Task Force is overseeing relief, with a structured reconstruction report expected within the month. • Social Impact: Efforts are underway to resettle displaced persons currently in relief camps through short, medium, and long-term planning. The PM urged the Opposition to support disaster recovery rather than using "repression" as a political narrative.

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### 🇱🇰 Protesters in Colombo Condemn US-Israel Attacks on Iran

• Context: A demonstration was held in Colombo under the theme "No Blood for Oil," organized by the Friends of a Free Palestine organization. • Key Participants: The protest saw the participation of the Iranian Ambassador Dr. Alireza Delkhosh and Samagi Jana Balawegaya (SJB) MP Mujibur Rahman. • Economic & Geopolitical Significance: The demonstration highlighted regional concerns regarding military actions in the Middle East. The slogan "No Blood for Oil" underscores the potential impact of geopolitical instability on global energy markets and oil prices, which directly affects Sri Lanka's import costs. The presence of political figures and diplomats indicates the local importance of maintaining stable relations and navigating international conflicts that could disrupt trade routes or fuel security. • Status: Based on reports from March 7, 2026.

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US Embassy Issues Security Alert for Citizens in Sri Lanka 🛡️

The US Embassy in Colombo has issued a formal advisory for American citizens currently in Sri Lanka, citing heightened Middle East tensions. While the notice focuses on safety and travel logistics, it highlights the potential for geopolitical volatility to impact local operations. • Security Protocols: US citizens are urged to enroll in the Smart Traveler Enrollment Program (STEP) for real-time security updates. • Travel & Logistics: The embassy confirmed that commercial flight routes avoiding Middle Eastern transit remain available for those seeking to return to the US. • Consular Services: Dedicated walk-in hours (Mon-Thu, 1:00–2:00 p.m.) have been established for citizens whose travel plans are disrupted. • Economic Context: Such advisories often influence the tourism and hospitality sectors, which are vital for Sri Lanka’s foreign exchange earnings. Monitoring these developments is essential for assessing short-term impacts on international arrivals and the broader services sector. Based on official US Embassy communication as of March 06, 2026.

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🇯🇵 Japan Grants US$ 103,843 for North & East Educational Infrastructure

The Government of Japan has signed two grant contracts totaling approx. Rs. 32 million under the "Grant Assistance for Grassroots Human Security Projects (GGP)" to bolster social infrastructure and human capital development in conflict-affected regions. • Overall Funding: A total of US$ 103,843 (approx. Rs. 32 million) allocated to projects in the Northern and Eastern Provinces. • Northern Province (Kilinochchi): US$ 64,594 (Rs. 20 million) granted to Child Action Lanka to construct a child development center and a residential shelter. The facility includes ICT/BPM training rooms and kindergarten facilities, directly benefiting 200 youth and 750 community members. • Eastern Province (Batticaloa): US$ 39,249 (Rs. 12 million) granted to Kattankudy Multipurpose Co-operative Society to renovate a school canteen damaged by the 2004 tsunami, ensuring nutritious meals for 2,100 students. • Strategic Context: This assistance aligns with bilateral commitments made during President Dissanayake’s September 2025 visit to Japan, focusing on national reconciliation through socio-economic development. • Historical Support: Since 1989, Japan’s GGP scheme has provided a cumulative US$ 62 million in grassroots assistance to Sri Lanka. 📈 _Summary based on official grant signing data._

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### ⚖️ Accountability & Governance: The Bedrock of Economic Recovery

A recent analysis emphasizes that Sri Lanka’s path to a US$ 150 Bn economy depends as much on institutional integrity as it does on debt restructuring and IMF targets. • The Governance-Economy Link Economic stability is tied to investor confidence. High-profile institutional failures, such as the Central Bank Treasury Bond controversy and losses in aviation (SriLankan Airlines, Mihin Lanka), continue to impact the national risk profile. • Key Infrastructure & Sector Risks Transparency remains a concern across major projects including: Energy & Power: Procurement in coal and oil. Infrastructure: Hambantota Port, Mattala Airport, and the Uma Oya scheme. Aviation: Systemic losses and historical management failures. • The Cost of "Institutional Amnesia" FDI & Markets: International investors conduct due diligence on enforcement credibility and procurement systems. Public Burden: Governance failures have directly resulted in higher taxes and reduced public services for citizens. Systemic Risk: Without legal closure on past allegations, the risk of recurrence remains high, undermining long-term growth. • Strategic Requirement The current administration's focus must shift from rhetoric to "principled completion." Closing investigation files lawfully—whether through prosecution or transparently stating a lack of evidence—is essential to rebuild global and domestic credibility.

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## 🌍 India’s Role as Peacemaker in an Era of Hard Power

Analysis by former Sri Lankan Cabinet Minister Milinda Moragoda highlights a global shift where military, economic, and technological power have replaced multilateral institutions as the primary instruments of statecraft. • Global Context Recent US-Israel strikes on Iran signal a move from deterrent signaling to coordinated military action. The post-Cold War era of institutional optimism (UN, global trade frameworks) is under strain as states increasingly use sanctions, technological restrictions, and military strikes to assert interests. • Strategic Implications for Sri Lanka & South Asia Regional stability is critical for economic growth, connectivity, and development. Unchecked escalation among global powers imposes heavy costs on smaller economies reliant on stable external environments. • India’s Unique Positioning India’s "strategic autonomy" allows it to maintain relationships across competing power blocs and the Global South. The report suggests India leverage this credibility to facilitate Track 1.5 and Track 2 dialogues—involving retired officials and thinkers—to explore "red lines" and prevent miscalculations. • Key Recommendations Move beyond formal, rigid multilateral settings to quiet, focused diplomacy. Deploy special envoys to facilitate communication between rivals, ensuring a "harder world" remains a controllable one.

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### 📈 Regional Conflict Impacts Iranian Healthcare & WHO Logistics

The World Health Organization (WHO) has verified targeted strikes on medical infrastructure in Iran and Lebanon amid the ongoing US–Israeli military campaign. Key updates include: • Verified Attacks: WHO confirmed 13 attacks on healthcare infrastructure in Iran and one incident in Lebanon. Reports of medical personnel casualties are currently under investigation. • Infrastructure Damage: At least four ambulances in Iran were damaged, with several hospitals sustaining structural damage from nearby strikes. A hospital in Tehran was forced to evacuate following military activity. • Conflicting Reports: While the WHO has verified 13 incidents, Iran’s UN ambassador claims 10 healthcare facilities were directly struck, indicating potentially higher figures based on provisional local data. • Logistics Disruption: The WHO logistics hub in Dubai—a critical node for distributing medical supplies across the region—is temporarily non-operational due to conflict-related transport restrictions. The disruption of these facilities and supply chains poses a significant risk to regional health stability and emergency response capabilities.

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Startups & Entrepreneurship

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📈 SLCSMI Launches National SME Support Forum to Address Economic Challenges

The Sri Lanka Chamber of Small and Medium Industries (SLCSMI) has announced a strategic initiative to support the SME sector, currently navigating a high-pressure recovery phase following successive national and global shocks. • Sector Significance: The SME sector remains the backbone of the economy, contributing approximately 52% to Sri Lanka’s GDP and providing employment for over 45% of the national workforce. • Economic Impact: Businesses have faced a series of disruptions since 2019, including the Easter attacks, COVID-19, the 2022 economic crisis, and recent natural disasters like Cyclone Ditwah. Ongoing Middle East tensions further impact trade and remittances. • Strategic Response: A special SME Forum is scheduled for late March 2026. This platform aims to bridge the gap between entrepreneurs and policymakers to resolve issues in: Finance and liquidity access Regulatory hurdles Market access and operational stability • Call to Action: Entrepreneurs in sectors such as manufacturing, trade, and services are urged to register by 20 March 2026. Registration: [email protected] or WhatsApp 0774586940. The initiative underscores that reviving Small and Medium Enterprises is essential for sustainable national economic recovery and rebuilding industrial resilience.

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New 'Harvest Centre' Tech Incubator Opens at Ruhuna University 📈

The Ministry of Science and Technology has launched its second technology incubation centre, the Harvest Centre, located at the Faculty of Agriculture, University of Ruhuna. This initiative aims to bridge the gap between academic research and commercial entrepreneurship in the Southern Province. • Strategic Focus: Dedicated to revitalising the agribusiness and food technology sectors within the Matara, Galle, and Hambantota districts. • Core Objectives: • Facilitate research commercialisation and support for start-ups. • Provide scientific reports on food quality, standards, and modern packaging to meet international benchmarks. • Offer technical and management guidance from university lecturers to help SMEs scale operations. • National Context: The centre operates under the Vidatha program, a national framework designed to transfer high-tech knowledge to rural areas. By converting natural resources into value-added products, the project aims to strengthen local industries and expand their reach into foreign markets. • Collaboration: A joint effort between the Ministry of Science and Technology and the University of Ruhuna, supported by the Ministry of Industry and Entrepreneurship Development. • Status: Based on official launch reports; part of a broader plan to establish technology incubators across state universities to boost the MSME sector.

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### Strategies for Resilient Entrepreneurship in Post-Crisis Sri Lanka 📈

A high-level roundtable convened by Dilmah Genesis and the LSE South Asia Centre in Colombo has outlined a shift from basic economic stability to long-term growth through institutional alignment and specialized support. • The Advisory Gap Research indicates that while financial aid (debt moratoria/concessional loans) is common, it is often "fragile" without relational support. Entrepreneurs rely heavily on informal networks; effective policy must integrate coaching, mentorship, and trust-based guidance rather than just technical instruction. • Sectoral Insights & Value Chains Tea & Agriculture: Experts highlighted that competition for supply can drive quality upgrading and better farmer pricing, drawing parallels from international models. SMEs: Small and medium enterprises remain central to growth but suffer from fragmented policy and under-prioritized fiscal strategies. Innovation: Global value is now defined by sustainability, provenance, and ethics—areas where Sri Lanka holds a natural competitive advantage. • Key Recommendations Digital Infrastructure: Adoption of digitally enabled public systems to restore entrepreneurial confidence. Beyond Capital: Shifting focus from purely financial instruments to human-centered support structures. Policy Alignment: Moving from "survival-driven" micro-enterprises to value-driven export strategies through ICT/BPM integration and climate-resilient innovation. _Note: Findings are based on discussions from the Dilmah-LSE workshop; a formal White Paper with policy suggestions is pending._ ---

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Bridging the Gap: Addressing the 52% Female Underrepresentation in Sri Lankan Business 📈

A recent analysis highlights a significant gender disparity in Sri Lanka’s entrepreneurial landscape, particularly visible in commercial hubs like Pettah. Despite women constituting 52% of the total population, their active economic participation as business owners remains disproportionately low. • Current Entrepreneurship Trends: Based on the Global Entrepreneurship Monitor 2023, the Total Early Stage Entrepreneurial Activity (TEA) rate for women in Sri Lanka is just 8.2%, compared to 14.7% for men. • Economic Barriers & Social Constraints: The study identifies deep-seated social and cultural barriers that prioritize homemaking over financial independence. These factors, combined with a lack of early-stage encouragement in family and educational settings, have led to "imposter syndrome" and a persistent fear of failure among potential female leaders. • Impact on National Growth: The underutilization of the female demographic represents a significant "untapped resource" for the national economy. Moving beyond small, informal ventures is critical for sustainable development. • Recommended Strategies: To build an inclusive ecosystem, the analysis calls for: Focused confidence-building programs. Enhanced access to finance and credit facilities for women. A long-term societal mindset shift to promote ownership and leadership.

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## Bluechip Technologies Asia Joins SolarX APAC Program 📈

Sri Lankan-based Bluechip Technologies Asia participated in the SolarX Startup Challenge APAC Acceleration Program in Singapore (Feb 4–6), focusing on scaling clean-energy innovations across the region. • Program Overview: Hosted by the International Solar Alliance (ISA), the event brought together 14 winning startups to pitch solar-based solutions to global investors and innovation leaders. • Sector Focus: The company explored AI-driven technology collaborations, specifically targeting: Smart Analytics: Enhancing renewable energy efficiency. Forecasting: Improving power grid predictability. Decision-Support: Optimizing clean-energy resource management. • Economic Impact: This engagement highlights the growing role of the Sri Lankan ICT/BPM sector in the global renewable energy transition through cross-border collaboration and advanced AI applications. • Strategic Outcome: The program emphasized investment readiness and business scalability, positioning clean-tech as a vital vertical for digital export growth.

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## 📈 Entrepreneurship & Capital Reinvestment: Keys to National Wealth

At a recent Ambeon Securities forum, LAUGFS Holdings Chairman Dr. W.K.H. Wegapitiya emphasized that Sri Lanka’s economic recovery hinges on shifting from a "nation of employees" to a culture of entrepreneurship and capital formation. • Wealth Gap & Growth: In 1950, Sri Lanka’s national wealth was US$ 1.4 Bn (2nd in Asia). Today, GDP stands at approx. US$ 84 Bn (90th rank), while peers like Taiwan have scaled to nearly US$ 1 Tn by prioritizing private capital and manufacturing. • The Profit-to-Capital Formula: Wegapitiya argued that "profit is not a crime" but a prerequisite for investment. Economic stagnation stems from social pressures and price controls that drain corporate earnings before they can be converted into productive capital. • Strategic High-Growth Sectors: To drive future GDP, focus must shift toward: Agriculture: Target to increase GDP contribution from 10% to 36% via processing and value addition. Healthcare & Pharmaceuticals: Vital due to aging demographics (25% of population over 60 by 2030). Manufacturing: Leveraging local natural resources to ensure stable, non-volatile economic growth. Services: High potential in equity investments and financial markets. • Current Outlook: The current fiscal environment is described as the "most conducive in five years." Experts suggest moving away from low-yield savings toward equity markets for long-term capital appreciation. • Key Constraints: • Only 2% of the workforce is entrepreneurially oriented. • Need for policy consistency and dedicated development financing.

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📈 Sri Lankan Tech Giant Fcode Labs Invests in German Coffee Startup

Sri Lanka-based ICT/BPM powerhouse Fcode Labs has announced a strategic investment in Bunamo, a Germany-based digital platform for the global coffee community. This move reinforces Sri Lanka’s growing footprint in the European tech ecosystem. • The Partnership: Beyond capital, Fcode Labs is the primary engineering partner, responsible for the platform's scalable architecture and user-centered design. • Product Scope: The platform connects home baristas, professional roasters, and brands, featuring content-driven interactions like recipe sharing and brand exploration. • Strategic Impact: This collaboration highlights the export of Sri Lankan software engineering expertise, helping European startups transition from concept to production-ready platforms. • Regional Focus: Built on a cloud-ready foundation, the platform is positioned for rapid expansion across Europe and international markets. _“Our decision was driven by the fast-growing coffee community globally,”_ stated Fcode Labs Co-CEO Buddhishan Manamperi, noting the investment aligns with their mission to back global innovation through Sri Lankan technical talent.

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## 📈 ZKTOR Enters Beta in Sri Lanka: A Shift Toward Digital Sovereignty

The South Asian social media platform ZKTOR has officially entered its beta phase in Sri Lanka. Developed by Softa Technologies Ltd., the platform prioritizes digital sovereignty, privacy, and user dignity over traditional data-driven models. • Core Technology & Architecture Zero-Knowledge Principles: System architecture ensures user activity and behavioral data are inaccessible to everyone, including platform administrators. Privacy by Design: Features include multi-layer encryption and a "no-extraction" media framework that prevents unauthorized downloading of personal content. Geographically Bounded Data: All data remains within regional borders, addressing concerns regarding external data extraction and foreign control. • Governance & Independence Zero External Funding: The platform has been developed without venture capital or government grants to maintain governance integrity and avoid investor-driven data policies. Strategic Leadership: Led by Chief Architect Sunil Kumar Singh, the design incorporates Nordic principles of digital trust and restraint adapted for South Asian linguistic and cultural diversity. • Socio-Economic Impact Digital Safety: Built-in safeguards specifically target online harm and misinformation affecting women and youth. Local Ecosystem: The operating model prioritizes local technical roles and moderation, fostering youth employment in the ICT/BPM sector without exporting regional data.

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📈 BOC Targets 2,000 Entrepreneurs via Beyond Banking Initiative

The Bank of Ceylon (BOC) is scaling its Entrepreneur Development Program (EDP) to strengthen Sri Lanka’s SME sector. Following the successful revival of nearly 700 distressed businesses, the bank is shifting focus from reactive support to proactive capacity building. • Overall Targets: BOC aims to train 1,500 to 2,000 entrepreneurs from 2026 onwards. The program is free of charge and open to both BOC and non-BOC customers. • Participant Profile: Focuses on SME owners aged 18–45 with annual turnovers between Rs. 5 million and Rs. 50 million. • Sector Breakdown: Participants are primarily drawn from high-potential and core areas: • Manufacturing & Export sectors. • ICT/BPM (IT services). • Agriculture. • Key Knowledge Areas: Training covers financial discipline, cash flow management, digital marketing, supply chain, and taxation. While non-financial, the program guides SMEs on accessing concessionary loan schemes and collateral-free facilities. • Support Model: A dedicated panel of bank experts provides ongoing mentorship via a WhatsApp-based community, ensuring long-term business sustainability and employment stability.

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Sri Lanka’s SME Financing Gap: Bridging the Venture Capital Divide 📈

Small and Medium Enterprises (SMEs) remain the backbone of the Sri Lankan economy, yet a significant "financing gap" persists for those deemed too large for microfinance but too traditional for venture capital. • Overall Figures & Economic Impact: SMEs account for over 75% of all Sri Lankan businesses, contributing 52% to the national GDP and providing 45% of total employment. Despite this, they face a staggering NPL stock valued at approximately Rs. 680 Bn following recent economic shocks. • Sector & Regional Breakdown: Venture capital remains heavily concentrated in ICT/BPM and tech-driven startups in urban Colombo. In contrast, SMEs in agriculture, manufacturing, and traditional services—especially in rural regions—are often excluded due to a lack of scalability or geographical bias. • Financing Challenges: Access to bank finance is stifled by high interest rates and rigid collateral requirements. Current SME lending rates remain a hurdle, though the Budget 2026 has proposed a Rs. 7.7 Bn allocation for concessionary loan schemes with interest rates as low as 5% for certain agricultural segments. • Proposed Solutions: Experts suggest a shift toward angel investors, impact funds, and regional venture plans. The government is also consolidating support agencies (IDB, NEDA, SMED) to streamline assistance and bridge the equity gap for the "underserved majority." _Note: Summary based on provisional 2025/2026 market data and recent budget proposals._

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Regulatory & Policy News

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### SEC Launches Storybook to Boost Financial Literacy 📚

The Securities and Exchange Commission of Sri Lanka (SEC) has introduced a children’s storybook titled "Madura’s Bamboo Flute Dream" to promote financial education among secondary school students. • Core Objective: The initiative aims to foster an entrepreneurial mindset and financial awareness, focusing on habits like earning, saving, and investing responsibly. • Strategic Alignment: The book supports the proposed introduction of Financial Literacy and Entrepreneurship as a subject under upcoming national education reforms. • Target Audience: Primarily designed for students in Grades 6 to 9, the resource will be distributed free of charge to schools nationwide in all three languages. • Key Stakeholders: SEC Chairman Prof. D.B.P.H. Dissabandara presented the book to Prime Minister Dr. Harini Amarasuriya, highlighting its role in building a future-ready, self-reliant workforce. • Content Focus: The narrative guides young learners on managing resources wisely and pursuing aspirations, contributing to long-term economic diversification and human capital development. 📈

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### 📈 IRCSL Unveils Roadmap to Triple Insurance Penetration by 2035

The Insurance Regulatory Commission of Sri Lanka (IRCSL) marked its 25th anniversary by announcing a strategic growth plan to double insurance penetration by 2030 and triple it by 2035. The sector is positioned as a critical pillar for national financial stability and risk protection. • Current Market Standing (as of Q3 2025): Gross Written Premium (GWP): Rs. 283.6 Bn (+19.48% YoY). Total Sector Assets: Rs. 1.35 Trillion. Current Penetration: ~0.5% of GDP for general insurance and ~0.6% for life insurance. Industry Players: 29 insurers (15 life, 14 general) and 82 broking companies. • Digital & Regulatory Transformation: Digital Motor Insurance Card: Launched in collaboration with the Public Security Ministry to automate verification. Centralised Data Repository: A new real-time system to enhance oversight and curb insurance fraud. Mortality Table: Introduction of a localized standard mortality table to refine life insurance pricing and risk management. • Structural Reforms & Literacy: Transitioned to a Risk-Based Capital (RBC) model to ensure long-term solvency. New specialized units established for Market Intermediary Licensing and Market Conduct. Focus on financial literacy through nationwide programs and the "InsureChamp 2025" initiative to bridge the protection gap. • Future Outlook: Sri Lanka will host the OECD/ADB Institute Roundtable in June 2026, focusing on retirement savings and natural hazard protection, addressing key demographic and climate risks.

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📈 SLTDA Facing Credibility Test Over Enforcement Delays

A delay in operationalizing a Special Enforcement Unit by the Sri Lanka Tourism Development Authority (SLTDA) is raising concerns over regulatory credibility and the protection of licensed stakeholders during the peak season. • Legal Commitments: Despite a July 2025 undertaking to the Supreme Court to establish an enforcement unit within three months, the unit remains non-functional. • Current Bottleneck: Implementation is reportedly deferred for at least another six months pending legal consultations on a proposed new Tourism Act, despite existing mandates under the Tourism Act No. 38 of 2005. • Sector Impact: Unregistered operators continue to function openly, placing licensed tour guides and compliant businesses at a significant disadvantage during high-traffic periods. • Economic Risks: Critics argue that failing to regulate risks lowering service standards and visitor safety, potentially damaging Sri Lanka's reputation and long-term foreign exchange revenue. • Key Stakeholders: The Sri Lanka Institute of National Tourist Guide Lecturers (SLINTGL) previously initiated legal action to compel enforcement against unlicensed entities. _Note: Summary based on published reports regarding regulatory delays as of March 2026._

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Legal Experts Challenge Demolition of Historic S. Thomas’ College Dining Hall 🏛️

• Legal Status: Experts, including public interest litigator Dr. Ravindranath Dabare, state the planned demolition or modification of the Dining Hall is "manifestly illegal" under the Antiquities Ordinance No. 9 of 1940. • Historical Significance: Constructed between 1918 and 1922, the building exceeds the 100-year threshold, legally classifying it as an "ancient monument." • Legal Protection: Under Section 16 of the Ordinance, status as an antiquity is granted by age alone and does not require formal gazetting. Unauthorized structural alteration is considered a non-bailable criminal offense. • Project Details: The proposed work is part of the "Phase IV Senior Quadrangle" development, funded by a Rs. 600 million donation from philanthropist Eng. Nahil Wijesuriya. • Conservation Concerns: Critics argue the project threatens the architectural legacy of Warden William Arthur Stone and violates the school’s role as a "trustee" of national heritage for future generations. • Context: The controversy coincides with the school’s 175th anniversary, highlighting the tension between modern infrastructure development and heritage preservation in Sri Lanka. ⚖️

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### TISL Warns of Loopholes in New Microfinance Law 📉

Transparency International Sri Lanka (TISL) has raised serious concerns over the recently passed Microfinance and Credit Regulatory Authority Bill, stating it fails to meet Supreme Court determinations and leaves vulnerable borrowers at risk. • Regulatory Gaps: The law defines "microfinance" only when the primary objective is "social empowerment." This allows large banks and leasing companies to offer identical small loans under a "commercial objective" to avoid the consumer-protection standards applicable to licensed microfinance institutions. • Lack of Borrower Protection: • No mandatory income verification or debt-to-income thresholds. • Absence of clear appeal mechanisms or guaranteed legal representation for borrowers. • Failure to recognize coercive recovery practices, including sexual bribery and corruption targeting women, as regulatory breaches. • Governance & Accountability: • No mandatory conflict-of-interest disclosures for the new Authority. • Inadequate transparency regarding funding sources and grants. • High concentration of discretionary power without sufficient oversight. • Economic Impact: The microfinance sector is a critical pillar for low-income households and women-led small businesses. TISL warns that "superficial amendments" risk leaving these communities exposed to predatory lending, hindering genuine financial inclusion and poverty Alleviation efforts.

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📈 Cabinet Tightens Maize Import Controls to Protect Local Farmers

The Cabinet of Ministers has introduced a structured regulatory framework for maize imports to address domestic supply shortfalls while safeguarding the local agriculture sector. • New Pricing & Import Framework: A committee led by the Agriculture Ministry Secretary will now determine maize prices. Imports will be strictly limited to filling the gap when local harvests are unavailable in the market. • Thriposha Production: Approval granted for Sri Lanka Thriposha Ltd. to import up to 15,000 tons of maize in phases during 2026. This ensures the uninterrupted production of the national nutritional supplement despite local quality and supply constraints. • Regulated Participants: Only registered animal feed manufacturers and importers under the Department of Animal Production and Health are permitted to import, subject to rigorous supervision to prevent market distortions. • Process Streamlining: A new stepwise procedure has been formulated by the Agriculture and Trade Ministries to bypass bureaucratic bottlenecks and ensure timely procurement of high-quality raw materials. The move aims to balance the needs of the poultry & livestock and food processing industries with the livelihoods of domestic maize growers.

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### Legal Win for Colombo Fort Land: Court Clarifies Tax Status ⚖️

The Court of Appeal has ruled in favor of Colombo Fort Land & Building PLC, establishing a significant precedent for the taxation of corporate structures in Sri Lanka. • The Ruling: The Court classified the entity as a Holding Company rather than an Investment Company, rejecting the Inland Revenue Department’s (IRD) attempt to tax dividends as trading profits. • Key Distinction: The judgment clarified that Holding Companies maintain long-term control over subsidiaries, whereas Investment Companies typically engage in frequent share trading for short-term gains. • Tax Impact: The IRD argued that because dividends exceeded 80% of revenue, they should be treated as business income. The Court rejected this, ruling that high income concentration does not automatically change legal classification. • Legislative Intent: The decision reinforces the Inland Revenue Act of 2006, ensuring dividends are classified as a separate income source to prevent double taxation within corporate groups. • Economic Significance: This ruling provides much-needed tax certainty for diversified Conglomerates and Holding Companies, protecting the financial flow between parent companies and their subsidiaries.

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### Tax Clarity and Enhanced Disclosure for Sri Lankan Unit Trusts 📈

The Unit Trust Association of Sri Lanka (UTASL) has highlighted key provisions in the proposed Bill to amend the Inland Revenue Act, focusing on transparency and investor tax obligations. • Pass-Through Status: Unit Trusts will continue to be treated as pass-through vehicles for income tax, where income is taxed at the unit holder level. However, to maintain this status, trusts must now issue detailed income certifications to investors within five months of the assessment year-end. • Penalty for Non-Compliance: If a Unit Trust fails to provide the required certification (detailing income, exemptions, and withholding taxes), it will be treated as a company for income tax purposes, potentially increasing the tax burden. • Capital Gains Tax (CGT): Quoted Equities: Investments in listed equities held by Unit Trusts remain exempt from CGT under the broader framework. Other Assets: The UTASL expects CGT treatment for other asset classes to remain unchanged, provided the pass-through status is maintained. • Implementation Timeline: These requirements are expected to take effect from 1 April 2025. • Economic Impact: By formalizing disclosure, the amendments aim to improve good governance within the financial services sector and the capital markets, ensuring Unit Trusts remain a viable vehicle for long-term national investment.

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Sri Lanka Entering Final Stage for PayPal Inward Remittances 📈

Sri Lanka is nearing the completion of a long-awaited initiative to enable inward remittances through PayPal, according to Digital Economy Ministry Secretary Waruna Sri Dhanapala. • Current Status: The project is in its concluding phase following successful collaboration between private banks, PayPal, and the Central Bank of Sri Lanka (CBSL). • Economic Impact: SMEs & Freelancers: The move specifically targets internet-based service providers and the ICT/BPM sector, allowing them to receive foreign income through a formal, regulated mechanism. Foreign Exchange: By providing a local address option, the framework aims to capture "lost" forex currently held in overseas or proxy accounts. Formalization: The government expects a shift from informal channels (like Undiyal) to official platforms, improving transparency and tax compliance. • Regulatory Oversight: All transactions will fall under CBSL supervision, ensuring a secure and transparent digital payment ecosystem to strengthen national foreign exchange inflows. _Source: Digital Economy Ministry (Provisional)_

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📈 Proposed Single Cigarette Ban: Economic & Market Risks

Sri Lanka's Sectoral Oversight Committee (SOC) is re-evaluating a total ban on the sale of individual cigarettes. While driven by health concerns, the proposal faces significant pushback regarding its economic impact on small retailers and the potential for market distortion. • Economic & Health Toll: Data from NATA indicates an annual economic loss of Rs. 225–240 billion and approximately 22,000 lives lost to tobacco and alcohol-related causes. • The Unregulated Market: Experts warn a ban on "single sticks" could drive consumers toward the Beedi market (priced at Rs. 10/stick) or illegal smuggled cigarettes. The illegal cigarette trade already deprives the government of over Rs. 100 billion in annual revenue. • Impact on MSMEs: For the "Petti Kade" (micro-retailers), cigarettes act as a "bridge product" that drives foot traffic for other essentials. A full pack currently costs upwards of Rs. 3,200, a price point inaccessible to many consumers in the current economic climate. • Key Concern: A shift from legal sticks to unregulated alternatives could undermine public health goals while squeezing the daily cash flow of thousands of small-scale shopkeepers and reducing national tax collection. _Status: Currently under discussion within the Sectoral Oversight Committee._ ---

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Exporters Now Authorized to Invest in Local Dollar Bonds 📈

The Government has issued Regulations to Repatriation of Export Proceeds No. 01 of 2026 via Extraordinary Gazette, expanding the scope for exporters to utilize repatriated earnings for domestic foreign-denominated investments. • New Investment Access: The amendment updates the 2024 rules under the Central Bank of Sri Lanka (CBSL) Act, allowing exporters to invest in local loan instruments denominated in foreign exchange, a facility previously restricted to incorporated commercial banks. • Market Impact: This policy shift aims to increase demand for local Dollar Bonds, ensure competitive pricing, and deepen the domestic foreign exchange market. • Economic Objective: By enabling the apparel, tea, and ICT/BPM sectors to channel proceeds into these instruments, the move seeks to strengthen national reserves and promote economic stability through better classification of foreign exchange sources. • Regulatory Timeline: Following the initial issuance on 10 December 2025, these updated regulations await formal parliamentary concurrence to broaden participant eligibility.

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CBSL Blacklists 24 Entities for Prohibited Pyramid Schemes 🚫

The Central Bank of Sri Lanka (CBSL) has issued a formal notice identifying 24 entities and apps as prohibited schemes under Section 83C of the Banking Act, No. 30 of 1988. This follows investigations confirming these groups promoted unlawful financial structures. • New Additions: I.C.A.N Advertising (Pvt) Ltd and its affiliates (bannercuts.com, etc.) are the latest to be officially prohibited following CBSL investigations. • Key Prohibited Entities: • OnmaxDT, MTFE App (and its various SL groups), and Ledger Block. • Global Lifestyle Lanka, Best Life International, and Tiens Lanka Health Care. • Qnet/Questnet, Sport Chain, and Fruugo Online. • Fastwin (Pvt) Ltd, Windex Trading, and Beecoin App. • Regulatory Context: Engaging in or promoting these schemes is a criminal offense. The CBSL warns that these activities pose significant risks to the financial sector and individual consumer savings, often masking themselves as ICT or e-commerce opportunities. • Status: Based on official CBSL determinations as of Feb 26, 2026.

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Corporate News

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📈 Maharaja Foods Rights Issue Oversubscribed by 197%

Maharaja Foods PLC has successfully concluded its Rights Issue, raising Rs. 112.5 Mn after receiving overwhelming demand from shareholders. The issue was significantly oversubscribed, with total applications reaching 24.72 million shares against the 12.5 million shares offered. • Key Figures Issue Price: Rs. 9.00 per share (1-for-10 basis). Current Market Price: Rs. 13.30 (as of March 6, 2026). Total Subscriptions: 24,723,629 shares (Entitlements: 12.33 Mn; Additional: 12.39 Mn). • Strategic Fund Allocation Retail Expansion: Rs. 47.5 Mn to establish a SPAR–Maharaja SaveMore outlet in Kotahena (setup and inventory). Debt Reduction: Rs. 50.0 Mn to settle loans and overdrafts with HNB, aimed at lowering finance costs. Product Innovation: Rs. 15.0 Mn to launch a new range of ready-made rice and curry mixes, targeting the growing ready-to-eat and instant food market. The successful capital raise supports the company’s push into high-growth food processing and retail segments while strengthening its balance sheet. _Note: Based on company disclosures as of March 9, 2026._

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CEB Restructuring: Six Successor Companies to be Established from March 9 📈

The Minister of Energy has issued a Gazette Extraordinary to officially restructure the Ceylon Electricity Board (CEB), effective March 09, 2026. This move transitions the state utility into a new era of power sector management under the Sri Lanka Electricity Act, No. 36 of 2024. • New Structure: The CEB’s functions will be unbundled into six successor companies. These entities will independently manage electricity generation, transmission, distribution, and system operations. • Regulatory Milestones: The transition follows the completion of the Preliminary Transfer Plan (Jan 2026) and Cabinet approval of the National Electricity and Tariff Policies (March 2026). • Operational Planning: Key technical frameworks, including the Long Term Generation Expansion Plan and the Annual Power Procurement Plan, were finalized in February 2026 to ensure a smooth handover. • Economic Impact: This restructuring aims to modernize Sri Lanka's energy infrastructure, improve operational efficiency, and create a more transparent framework for utility management and tariff setting. The move marks the formal commencement of transferring assets and duties from the legacy CEB to the new corporate entities.

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HNB General Insurance Hits Record Rs. 11 Bn GWP in 10 Years 📈

HNB General Insurance (HNBGI) has become the fastest Sri Lankan general insurer to reach the Rs. 11 billion Gross Written Premium (GWP) milestone within a decade of operations, surpassing industry growth rates. • Overall Performance: Recorded a GWP of Rs. 11.0 Bn for 2025, reflecting a robust 21% growth YoY, significantly outpacing the industry average of 15%. The company moved up to 6th place in the national market rankings. • Sector Breakdowns: • Motor: Grew by 25% to Rs. 6 Bn. • Fire: Surged by 27% to reach Rs. 2.4 Bn. • Miscellaneous: Contributed Rs. 2.2 Bn. • Marine: Increased by 16% to Rs. 378 Mn. • Claims & Resilience: Demonstrated strong financial reliability by committing Rs. 2.5 Bn for Ditwah cyclone-related claims and paying an additional Rs. 4.7 Bn across other segments. • Financial Position: Total Assets grew by 31% to Rs. 13.38 Bn. The Capital Adequacy Ratio stands at 190%, well above regulatory requirements. Fitch Ratings recently upgraded the company’s insurer financial strength rating from A-(lka) to A (lka). • Strategic Milestone: The firm maintained a 5-year Compound Annual Growth Rate (CAGR) of 17.1% and is currently preparing for full SLFRS 17 adoption in 2026.

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📈 Hardy Jamaldeen Acquires 7% Stake in Softlogic Finance; Stock Moves to Main Board

Investor Hardy Jamaldeen has acquired a ~7% stake in Softlogic Finance PLC for over Rs. 325 million, signaling renewed market interest as the company transitions back to the CSE Main Board today. • Transaction Highlights: Hardy purchased 65.38 million shares (6.79%) at Rs. 5.00 per share from Softlogic Capital PLC. The parent group's total holding subsequently reduced from 92.41% to 84.10%. • Market Reaction: The trade triggered significant retail interest, driving the share price to a high of Rs. 7.10 before closing at Rs. 6.50. The transaction accounted for 9% (Rs. 654 million) of the day's total market turnover. • Regulatory & Board Move: The company moved from the Diri Savi Board to the Main Board today after meeting minimum public holding requirements. This follows a capital restructuring to offset retained losses against stated capital. • Financial Performance: - Profitability: Reported a 3Q FY26 profit of Rs. 5 million (up from Rs. 4.2 million YoY), though 9-month profits dipped to Rs. 12.4 million from Rs. 42 million. - Solvency: Core capital remains above the Rs. 2.5 Bn regulatory threshold. The Capital Adequacy Ratio stands strong at 51.69%, significantly above the 12.5% requirement. - Credit Rating: Obtained a ‘B’ rating from Lanka Rating Agency, its first in three years. • Outlook: With CBSL lifting all lending and deposit caps in late 2025, analysts expect improved performance for the financial services provider in FY27.

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CEB Reports Rs. 29.15 Bn Loss in 2025 Q4 📈

The Ceylon Electricity Board (CEB) has posted a significant financial downturn for the final quarter of 2025, reflecting a sharp shift in the state utility's profitability. • Quarterly Performance (Q4 2025): Recorded a net loss of Rs. 29.15 Bn for the quarter ended 31 December 2025. This represents a 4,929% decline compared to the Rs. 603 Mn profit reported in Q4 2024. • Annual Results (Full Year 2025): The total annual loss reached Rs. 38.73 Bn. This follows a highly profitable 2024, where the utility recorded a surplus of Rs. 141.60 Bn. • Economic Context: The reversal highlights ongoing volatility in the energy sector, impacting national fiscal stability and the broader power & infrastructure landscape. _Note: Based on latest financial statements as of March 2026._

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📈 Fintrex Finance Reports Massive 352% Surge in 9-Month PAT

Fintrex Finance PLC has announced exceptional results for the nine months ending December 31, 2025, driven by strong operational momentum and successful income diversification. • Overall Profitability: Year-to-date Profit After Tax (PAT) soared to Rs. 478 Mn, a 352% YoY increase. Earnings Per Share (EPS) jumped to Rs. 2.02 from Rs. 0.45. • Revenue Performance: Gross income rose 79% to Rs. 4.80 Bn. Net Interest Income (NII) surged 91% to Rs. 2.38 Bn, supported by a 61% growth in interest income and effective asset-liability management. • Income Diversification: Net fee and commission income saw a remarkable 422% YoY growth to Rs. 667.6 Mn, highlighting a shift toward non-interest-based revenue. • Balance Sheet & Assets: Total assets grew 37% to Rs. 29.8 Bn. Loans and advances expanded by 68%, while customer deposits increased 19% to Rs. 11.6 Bn. • Strategic Growth: The company is advancing its digital footprint with a new mobile banking app and targeted financing for SMEs and students. Capital was bolstered via a Rs. 500 Mn Tier II certificate issuance and a rights issue. • Stability: Impairment provisions increased in line with loan growth using conservative IFRS 9 overlays to ensure long-term resilience.

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JXG Reports Strong 9-Month Growth with Rs. 3.2 Bn Profit 📈

Janashakthi Group (JXG) delivered a resilient performance for the nine months ended 31 December 2025 (Q3 FY26), driven by its integrated financial services portfolio. • Overall Group Performance: Consolidated Revenue: Rs. 21.9 Bn (up 19.2% YoY). Net Profit After Tax (PAT): Rs. 3.2 Bn, surpassing the Rs. 2.9 Bn recorded in the previous year. Total Assets: Stood at Rs. 163 Bn, reflecting a strengthened balance sheet. • Sector & Subsidiary Breakdown: Investment Banking (First Capital): Contributed Rs. 11.4 Bn to revenue. While mark-to-market gains moderated, the stockbroking arm saw PAT surge to Rs. 166 Mn from Rs. 39 Mn YoY. Insurance (Janashakthi Insurance): Reported a PAT of Rs. 3.4 Bn for the full year. Gross Written Premiums rose 31% to Rs. 8.7 Bn, with a significant 67% growth in New Business Premiums. Finance (Janashakthi Finance): PAT reached Rs. 240 Mn. The lending portfolio showed high traction with 49% YoY growth, pushing Net Operating Income up by 35% to Rs. 2.2 Bn. • Strategic Outlook: The Group attributes its success to a disciplined "portfolio approach" and scalable platforms. Management remains confident for the final quarter of FY26, focusing on capital allocation and risk management to sustain momentum across its banking, insurance, and leasing interests.

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📈 Ceylinco Life Secures 22nd Year of Market Leadership with Rs. 44.18 Bn Premium

Ceylinco Life has maintained its dominant position in Sri Lanka’s life insurance sector for the 2025 financial year, posting strong growth across all key financial metrics and crossing the Rs. 200 Bn Life Fund milestone. • Core Financial Performance • Gross Written Premium (GWP): Rs. 44.18 Bn (↑ 18.96% YoY) • Total Consolidated Income: Rs. 72.43 Bn (↑ 10.51% YoY) • Net Profit After Tax: Rs. 7.85 Bn (↑ 10.97% YoY) • Profit Before Tax: Rs. 11.21 Bn (↑ 11.5% YoY) • Asset Base & Stability • Total Assets: Rs. 287.02 Bn (↑ 14.15%), growing at an average of Rs. 2.9 Bn per month. • Life Fund: Milestone reached at Rs. 201.81 Bn (↑ 11.56%). • Investment Portfolio: Expanded to Rs. 253.43 Bn (↑ 13.9%). • Policyholder & Shareholder Value • Benefits Paid: Rs. 31.07 Bn in net claims and benefits (↑ 24.06% YoY). • Shareholder Equity: Increased to Rs. 67.8 Bn. • Earnings Per Share (EPS): Rs. 156.94. The results underscore the resilience of the financial services industry and Ceylinco Life’s ability to maintain high trust levels, reflected in its 19th consecutive "People’s Life Insurance Service Provider" award. The company continues to play a vital role in national risk mitigation and long-term capital formation.

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Fitch Assigns 'AAA(lka)' Rating to Hayleys Rs. 7 Bn Debentures 📈

Fitch Ratings has assigned a National Long-Term Rating of 'AAA(lka)' to Hayleys PLC’s proposed Rs. 7 billion unsecured senior redeemable debentures, reflecting the group's dominant market position and diversified revenue streams. • Financial Performance & Outlook Revenue Growth: Projected to rise by 19% in FY26, driven by consumer and retail, hand protection, and purification sectors. Margins: EBITDA margin expected at 10% for FY26 (slight dip from 11% in FY25) due to textiles export softening and US tariff pressures, with recovery to 11% forecast for FY27. Leverage: Net leverage (EBITDAR) expected to steady at 3.0x–3.5x for FY26-FY28. • Sector & Market Highlights Export Strength: Direct and indirect exports accounted for 53% of FY25 revenue; 15% stems from US/EU markets. Purification: Global leader in coconut shell-based activated carbon; 45% of capacity is located in Thailand and Indonesia. Hand Protection: Manufacturing operations in Thailand leverage the world’s largest natural rubber source. Agriculture & Tea: Holds a leading supplier position in Sri Lanka’s tea export and plantation industries. • Strategic Liquidity Capex: Planned annual investment of ~Rs. 20 billion for capacity expansion. Rights Issue: Rs. 9 billion expected in FY26 to finance new investments and debt repayment. Liquidity: Supported by Rs. 55 billion in unrestricted cash and strong access to domestic banking capital.

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📈 Sierra Cables Reports Robust Growth and Global Expansion

Sierra Cables PLC has demonstrated a strong financial resurgence for the nine months ended 2025, driven by strategic oversight under Browns Investments and a focus on high-standard manufacturing. • Overall Financial Performance Revenue: Rs. 12 Bn (↑ 68% YoY from Rs. 7 Bn) Operating Profit: Rs. 2.5 Bn (↑ 70% YoY) Net Profit: Rs. 2.1 Bn (↑ 105% YoY) Earnings Per Share: Increased to Rs. 3.88 from Rs. 1.89 • Sector & Market Highlights Export Leadership: Named "Best Sri Lankan Brand Exporter" in the Electronic and Electrical Products sector. US Market Access: Remains the only Sri Lankan cable manufacturer certified to the UL 44 standard, enabling supply to the highly regulated United States market. International Footprint: Expanding reach through operations in Zambia (Browns Manufacturing Ltd) and Fiji (Cables PTE Ltd). Infrastructure Impact: Primary supplier for major local projects including Cinnamon Life at City of Dreams and the Thambuttegama Water Supply Project. • Strategic Factors Financial Discipline: Net finance costs fell 29% to Rs. 101 Mn, aided by exchange gains from export growth. Credit Rating: Maintained an A+ (lka) national rating with a stable outlook from Fitch Ratings. Innovation: Investing in specialized solutions for renewable energy and fire-resistant cables for critical infrastructure. The company’s performance reflects a structural shift toward global competitiveness, balancing domestic market depth with a diversified international presence.

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### Amana Bank Records Best-Ever Performance in 2025 📈

Amana Bank achieved its highest profitability since inception in 2025, driven by robust growth in the SME sector and core financing activities. Financial Highlights • Profitability: Profit Before Tax (PBT) surged 47% YoY to Rs. 4.1 Bn, while Profit After Tax (PAT) rose 40% to Rs. 2.4 Bn. • Efficiency: Return on Equity (ROE) reached double digits for the first time at 10.4% (vs. 8.0% in 2024). The Cost-to-Income ratio improved to 51.8%. • Income: Total Operating Income grew 16% to Rs. 10.1 Bn, supported by a 21% rise in Net Financing Income. Lending & Asset Quality • Advances: Customer advances grew by 36% (Rs. 39.6 Bn) to reach Rs. 150.9 Bn, focusing heavily on SMEs to support the national economy. • Asset Quality: Maintained an industry-leading Stage 3 Impaired financing ratio of just 1.2%. • Assets & Deposits: Total Assets grew 12% to Rs. 204.3 Bn, while deposits rose to Rs. 172 Bn with a strong CASA ratio of 45%. Stability & Shareholder Value • Capital Position: Total Capital Ratio stood at 14.7%, comfortably above the 12.5% regulatory requirement. • Dividends: Declared its 8th consecutive interim dividend of Rs. 1.30 per share (4.3% yield). • Global Standing: Recognized among the Top 50 Strongest Islamic Banks globally by The Asian Banker. New Appointment • Board Expansion: Appointed Dr. Aishath Muneeza, a global expert in Islamic finance and former Maldives Deputy Minister, as an Independent Non-Executive Director. _Note: Based on audited FY 2025 financial data._

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📈 Pan Asia Bank to Raise Rs. 5 Bn via Debenture Issue

• Pan Asia Banking Corporation PLC has received Board approval to raise up to Rs. 5 billion through a listed, rated, unsecured, senior, redeemable debenture issue. • Issue Details: The bank plans to issue up to 50 million debentures at a face value of Rs. 100 each. • Tenor & Listing: The proposed instruments will carry tenors of up to five years and are intended to be quoted on the Colombo Stock Exchange (CSE). • Status: The move is subject to necessary regulatory approvals following the Board's decision on 26 February 2026. • Context: This capital raising initiative supports the banking & financial services sector's liquidity and long-term funding structures within the Sri Lankan economy. _Note: Based on official bank disclosure dated 03 March 2026._

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Appointments & Executive Moves

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Banking Veteran Jonathan Alles Joins Singer Finance Board 📈

Singer Finance (Lanka) PLC has officially appointed former HNB Managing Director/CEO Jonathan Alles as a Non-Independent Non-Executive Director, effective following Central Bank approval on March 5, 2026. • Profile & Expertise: With over 37 years of experience in the banking and finance sectors, Alles has held senior roles at HSBC, National Bank of Abu Dhabi, and Saudi British Bank. He is an MBA graduate (Finance) from the University of Stirling and an Associate Member of the Institute of Bankers of Sri Lanka. • Leadership Legacy: He previously served as Chairman of the Sri Lanka Banks Association (2013-2015) and the Asian Bankers Association (2018-2021). His career includes chairmanship and board roles at major entities including HNB Finance PLC, Lanka Clear Ltd, and Acuity Partners. • Current Engagements: Alles currently holds independent directorships across diverse sectors, including United Motors Lanka, Lion Brewery, Hayleys PLC, and Singer SL PLC. • Strategic Impact: This appointment brings deep institutional knowledge to Singer Finance's governance, particularly in navigating Sri Lanka's evolving financial services landscape. Based on official filings, Alles holds no relevant shares or debentures in the company. _Source: Based on provisional corporate disclosures._

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Dr. Dewasiri Jayantha Appointed as CEO of PMF Finance 📈

• PMF Finance PLC has officially appointed Dr. Dewasiri Jayantha as its new Chief Executive Officer, effective 3 March 2026, following approval from the Central Bank of Sri Lanka. • A distinguished figure in the financial services and academic sectors, Dr. Jayantha is a Professor in Finance (on Merit) and currently serves as the President of the Sri Lanka Institute of Marketing (SLIM). • He brings over 17 years of senior industry experience alongside a robust academic background, including a PhD in Finance from the University of Colombo and fellowships from the Chartered Management Institute (UK) and the Chartered Institute of Marketing (UK). • His expertise spans corporate governance, sustainable finance, and institutional transformation, having authored over 100 research publications on global financial stability and emerging-market development. • The appointment signals a focus on merging academic rigor with practical leadership to enhance the company's financial sector resilience and strategic growth.

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Unilever Sri Lanka Chairman Ali Tariq appointed as Cluster Head for Growth Markets 📈

Unilever has announced a significant leadership expansion for its Sri Lankan operations, positioning the local office at the center of a regional growth cluster. • New Leadership Scope: Ali Tariq, currently Chairman and CEO of Unilever Sri Lanka, has been appointed as the Cluster Head for growth markets covering Sri Lanka, Myanmar, Cambodia, and Laos. • Global Integration: Tariq will report directly to Unilever’s Global Executive, signaling the strategic importance of this cluster within the group's international framework. • Experience Profile: A 22-year veteran of the group, Tariq brings extensive experience in general management, finance, and organizational transformation across Europe, South Asia, and the Far East. • Strategic Impact: The move suggests a focus on regional diversification and strengthening organizational transformation within these emerging markets, leveraging the established leadership in Sri Lanka to drive broader regional growth. _Summary based on official company announcement._

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CBSL Approves New CEO for Bank of Ceylon (BOC) 📈

The Central Bank of Sri Lanka (CBSL) has officially approved the appointment of Y.A. Jayathilaka as the General Manager/Chief Executive Officer of the state-owned Bank of Ceylon, effective from 27 February 2026. • Leadership Transition: Jayathilaka transitions into the permanent role after serving as the Acting GM/CEO since 6 August 2025. • Professional Background: He previously served as the Deputy General Manager for Product and Banking Development and joined the bank's Corporate Management team in February 2020. • Strategic Impact: As a veteran of the state-sector banking & finance industry, his formal appointment provides leadership stability for Sri Lanka's largest commercial bank during a critical period of economic recovery.

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RDB Bank Appoints New Directors to Drive Development Mandate 📈

The state-owned Regional Development Bank (RDB) has strengthened its leadership team with two high-profile appointments to its Board of Directors, aimed at enhancing financial inclusion and supporting SME entrepreneurs. • New Appointments & Expertise Asoka Bandara (Independent/Non-Executive): Effective Oct 2025. Over 40 years of experience in consumer goods (FMCG), dairy value chains, and corporate strategy. Formerly at Nestlé, Delmege Forsyth, and currently at Maliban. Wasanthe Nandasiri (Independent/Non-Executive): Effective Nov 2025. A Fellow Chartered Accountant with 20+ years in banking, financial services, and multi-country operations. Former senior lead at Ernst & Young. • Strategic Focus Areas Governance & Transformation: Integration of advanced risk management, treasury oversight, and large-scale ERP implementations. Sector Synergy: Leveraging Bandara’s leadership in the dairy and confectionery sectors to align bank lending with national industrial growth. Institutional Sustainability: Focus on long-term value creation and business restructuring to fulfill the bank's development mandate. • Key Professional Backgrounds Bandara: President of All-Island Dairy Association; former Director at People’s Leasing and Litro Gas. Nandasiri: Expertise in audit, valuation, and business transformation across South Asia and emerging markets. The move signals a push for professionalized management within state-backed development finance institutions to better serve the agricultural and manufacturing sectors.

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Lanka IOC Appoints K. Raghu as New Managing Director 📈

Lanka IOC PLC has officially announced the appointment of K. Raghu to its Board as Executive/Managing Director, succeeding Dipak Das. A veteran of the petroleum sector, Raghu brings over 26 years of experience from Indian Oil Corporation Ltd. • Leadership & Expertise: Raghu holds a B. Tech in Civil Engineering and an MBA. His career spans significant roles in downstream marketing, retail strategy, and business leadership across major Indian states. • Strategic Achievements: He is credited with driving market share growth and spearheading retail network expansion. Notable successes include commissioning top-ranked company-owned outlets and introducing CNG infrastructure in new markets. • Modernization & Sustainability: His background includes leading retail automation, visual identity overhauls, and advancing sustainable mobility via LNG stations and electric vehicle (EV) charging networks. • Impact on Sri Lanka: In his new role, Raghu will provide strategic direction to Lanka IOC, focusing on operational excellence and sustainable energy solutions to further develop Sri Lanka’s energy sector.

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Sanjay Kulatunga Appointed to WindForce PLC Board 📈

• WindForce PLC has announced the appointment of Mr. Sanjay Kulatunga as an Independent, Non-Executive Director effective March 3, 2026. He succeeds Mr. Dilshan Hettiaratchi following the latter’s resignation, aiming to strengthen the company’s strategic oversight and governance. • Mr. Kulatunga is a seasoned entrepreneur and finance professional, currently serving as the Co-Founder and CEO of LYNEAR Wealth Management. His extensive background in financial services and export-oriented industries is expected to bolster the firm’s long-term decision-making. • Key professional highlights include: • Co-founded Amba Research, a pioneer in Sri Lanka's investment research offshoring sector. • Held high-level public sector roles at the Central Bank of Sri Lanka (FSSCC), the Board of Investment (BOI), and the Securities and Exchange Commission (SEC). • Currently a Member of the Colombo Port City Economic Commission. • His academic credentials include an MBA from the University of Chicago Booth School of Business, alongside CFA and ACMA (UK) qualifications. This appointment integrates top-tier financial expertise into the renewable energy sector's leadership.

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Indira Malwatta Appointed to CT Holdings Board 📈

CT Holdings PLC has announced the appointment of Indira Malwatta as an Independent Non-Executive Director, bringing over 40 years of expertise in export promotion and international marketing to the group. • Professional Background: A veteran in public sector leadership, she served as the first female Chairperson of the Sri Lanka Export Development Board (EDB). Her experience spans the industrial, agricultural, and SME sectors. • Key Achievements: Recipient of the Wifts Foundation Lifetime Achievement Award (London, 2016) and recognized by the LMD “A-List” of Sri Lankan business leaders. She has served as a focal point for projects with the World Bank, ITC, and JETRO. • Current Directorships: Currently holds Board positions at Samson International PLC (Chairperson), Cargills (Ceylon) PLC, Kotmale Holdings PLC, and Lanka Shipping and Logistics Ltd. • Economic Context: Her appointment strengthens the board’s capacity in supply chain management and women’s empowerment, reinforcing CT Holdings’ strategic leadership in the retail and manufacturing sectors. Note: Based on provisional corporate data. ---

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Commercial Bank Appoints Hasrath Munasinghe as Executive Director/COO 📈

• Commercial Bank of Ceylon PLC has officially appointed Hasrath Munasinghe as Executive Director and Chief Operating Officer (COO), effective 27 April 2026. He succeeds S. Prabagar, who retires after a 30-year career at the bank. • Munasinghe currently serves as Deputy General Manager – Corporate Banking. His extensive tenure at ComBank includes leadership roles across Retail Banking, Digital Banking, Remittances, and Sustainability. • With 31 years of multi-disciplinary experience in Banking, Telecommunications, and FMCG, he brings over 15 years of corporate management expertise to the role. He is credited with driving portfolio expansion and strengthening asset quality. • He holds dual roles as a Director of CBC Finance PLC and a Board member of the UN Global Compact (UNGC) Network Sri Lanka, reflecting a focus on ESG and responsible governance. • Academically, he holds an MSc in IT from the University of Moratuwa, an MBA, and professional fellowships from CIMA (UK) and CIM (UK). _Note: Appointment follows the scheduled retirement of the current COO._

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### Union Assurance Appoints CEO Senath Jayatilake to Board 📈

Union Assurance PLC has officially appointed its Chief Executive Officer, Senath Jayatilake, to the Board as an Executive Director, effective immediately. This move strengthens the leadership synergy between the company’s executive management and its strategic governance. • Executive Profile: Jayatilake serves as an Executive Vice President of the John Keells Group. His previous leadership includes a tenure as CEO of John Keells Logistics Ltd. • Professional Expertise: Brings over 19 years of experience across operations management, sales and marketing, and financial management. • Qualifications: • MBA from the Postgraduate Institute of Management (SJP). • BA (Hon) in Finance, Accounting, and Management (University of Nottingham). • Associate Member (ACMA) and Chartered Global Management Accountant (CGMA). • Strategic Impact: The appointment is expected to bolster Union Assurance’s position within the insurance and financial services sectors by leveraging Jayatilake's extensive cross-industry experience within the John Keells ecosystem.

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Mazagon Dock Nominees Appointed to Colombo Dockyard Board 📈

Colombo Dockyard PLC (CDPLC) has officially appointed several new directors nominated by its major shareholder, India’s Mazagon Dock Shipbuilders Ltd (MDL), effective February 24, 2026. This follows MDL's recent acquisition of a 41.73% stake (164.9 Mn shares) as part of a US$ 52.96 Mn strategic investment to revive the facility. • New Board Appointments • Capt. Jagmohan: Chairman & MD of MDL (Non-Executive, Non-Independent Director). • Biju George: Director (Shipbuilding) of MDL. • Ruchir Agrawal: Director (Finance) of MDL. • Thimira S. Godakumbura: Current MD/CEO of CDPLC, now representing MDL. • Strategic Context • The shift reflects MDL’s increasing oversight as it moves toward securing a 51% controlling interest via an ongoing mandatory offer at Rs. 40.00 per share. • The partnership aims to integrate Sri Lanka’s shipbuilding & heavy engineering sector into regional supply chains and resolve long-standing working capital constraints. • Governance & Growth • Nominees bring expertise in naval architecture, defense operations, and finance to strengthen strategic oversight. • Appointments were approved by the Nomination and Governance Committee in compliance with CSE listing rules.

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Headline: Corporate Heavyweight Chinthaka Jayaweera Joins Boards of Ceylon Guardian and Ceylon Investment 📈

Carson Cumberbatch group companies Ceylon Guardian Investment Trust PLC and Ceylon Investment PLC have announced the appointment of Chinthaka Jayaweera as an Independent Non-Executive Director, effective February 2026. • Executive Profile A veteran with over 28 years of global experience at A.P. Moller Maersk Group, Jayaweera previously served as Vice President and Chief Internal Audit Executive. He brings extensive expertise in governance, risk management, and global finance operations, having spent over two decades at Maersk's head office in Denmark. • Strategic Board Expansion His appointment extends beyond the investment sector; he has also joined the boards of other major entities within the group, including: Bukit Darah PLC Carson Cumberbatch PLC Equity Two PLC (Real Estate) Pegasus Hotels of Ceylon PLC (Leisure/Hospitality) • Qualifications & Background Education: Global Executive MBA from TRIUM (LSE, NYU Stern, and HEC Paris); leadership programs at Harvard and INSEAD. Professional: Fellow of CIMA (UK) and Member of CIM (UK). Career Roots: Started at KPMG Sri Lanka and Vanik Incorporation before a long-tenured career in international logistics and shipping. The addition of such a high-caliber professional is expected to strengthen independent oversight and risk compliance across these key investment and holding companies. _Note: Based on official corporate disclosures to the Colombo Stock Exchange (CSE)._

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Strategic Partnership, Product & Service Launches / Business Expansions

Product & Service Launches / Business Expansion

### 📈 Dialog Axiata Partners with Ericsson for National 5G Expansion

Dialog Axiata PLC has signed an agreement with Ericsson to deploy its 5G Radio Access Network (RAN) across Sri Lanka, a move set to accelerate the country's digital transformation and ICT/BPM capabilities. • Key Infrastructure Details • Deployment focuses on the 3.5 GHz band using Massive MIMO antenna-integrated radio (AIR 3219). • Introduction of Ericsson’s Cloud Native Infrastructure Solution (CNIS) to support cloudification and real-time AI-powered automation. • Includes network optimization and rollout services to enhance capacity for both consumer and enterprise use cases. • Market Leadership & Reach • Dialog currently operates Sri Lanka’s largest 5G network with over 1.5 million subscribers. • As the only provider with 3.5 GHz spectrum, the expansion targets nationwide coverage and ultra-high capacity. • Economic Impact • The partnership aims to strengthen national digital infrastructure, fostering innovation and supporting new enterprise offerings. • This investment underscores a decade-long partnership aimed at improving connectivity and enabling high-speed data access for millions of Sri Lankans.

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AIBL Secures Reinsurance Broking Licence for Global Market Access 📈

Assetline Insurance Brokers Ltd (AIBL), a subsidiary of the David Pieris Group, has been granted a Reinsurance Broking Licence by the Insurance Regulatory Commission of Sri Lanka (IRCSL). This allows the firm to handle both insurance and reinsurance placements directly. • Market Standing: AIBL ranks among the top three insurance broking companies in Sri Lanka with over 20 years of operations in general and life insurance. • Strategic Capability: The licence enables AIBL to independently design and place treaty and facultative programs, bridging the gap between local insurers and international reinsurance capacity. • Economic Impact: Provides specialized risk solutions for high-value sectors including infrastructure, engineering, marine, and manufacturing, where domestic capacity is often limited. • Service Integration: The move creates a single platform for insurance broking, reinsurance, and risk advisory, leveraging the institutional framework of the David Pieris Group to support complex risk transfers. This expansion aims to provide local corporates with more technically robust, competitively priced risk solutions by connecting them to leading global and regional reinsurers.

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Roar Global Scales South Asian Presence in Bangladesh and Nepal 📈

Sri Lankan mar-tech venture builder, Roar Global, has announced a strategic expansion of its regional footprint, transitioning from initial market entry to scalable operations in key South Asian markets. • Bangladesh Operations: Following a successful first year of revenue generation since September 2024, the company is shifting to a dedicated regional team model. Key focus areas include strengthening Meta advertising capabilities and expanding local infrastructure to support sustainable growth. • Nepal Market Entry: Roar Global has entered an exclusive partnership with Advantage Group to lead local execution. This alliance aims to elevate digital advertising standards, accelerate Meta adoption, and enhance advertiser performance through structured market education. • Regional Strategy: These developments reinforce Roar Global’s role as a regional leader in the ICT/BPM and digital advertising sectors. The move focuses on professionalizing digital ecosystems and leveraging local talent to build enduring commercial infrastructure across emerging markets. • National Impact: This expansion highlights the global competitiveness of Sri Lankan-led digital firms, contributing to the country's reputation as a hub for regional mar-tech innovation and professional services.

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Financial & Investment News

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### Expert Panel: Why Sri Lanka Struggles to Attract FDI 📈

A high-level symposium featuring experts from the US, China, and India has diagnosed key structural and corporate failures hindering Sri Lanka’s foreign direct investment (FDI) inflows. Key Figures & Performance • Annual FDI Inflow: Currently ~US$ 1 Bn, representing only 1% of GDP, significantly trailing the 3–4% seen in competing emerging markets. • Corporate Returns: Analysis of the top 25 listed firms shows only 5 consistently generate returns above the cost of capital. • China's Outbound Investment: Reached US$ 174 Bn in 2025, presenting a massive untapped opportunity for local partnerships. Critical Bottlenecks • Private Sector Accountability: Experts noted that tax incentives are no longer a differentiator; investors prioritize "responsibility, discipline, and performance." • Ecosystem Gaps: Beyond tax breaks, the country lacks a cohesive ecosystem involving skilled labor, industrial land, and streamlined logistics. • Institutional Weakness: A significant lack of professional and technical capacity to negotiate and manage Free Trade Agreements (FTAs) compared to regional peers like Vietnam. High-Potential Sectors • Tourism: Strategic focus needed on India’s 1.4 billion population, specifically major urban hubs. • Manufacturing & ICT/BPM: Opportunities to integrate into regional supply chains (e.g., Chennai industrial clusters) and leverage the skilled technology services workforce. • Logistics: Leveraging the strategic maritime location, provided there is better regional connectivity and a healthy national airline. Strategic Outlook To transition into an intermediate production hub, Sri Lanka must shift from serving a small domestic market to an export-oriented model backed by a stable legal system and consistent policy. _(Based on provisional 2025/26 data)_.

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Launch of $ 100 Mn Sri Lanka Opportunity Fund for Global Investors 📈

ACP Asset Management has launched the Sri Lanka Opportunity Fund, the first-ever European-regulated (UCITS) fund dedicated exclusively to Sri Lankan assets. Regulated by the FMA of Liechtenstein, the fund offers international investors a liquid, high-governance entry point into the country’s economic recovery. • Fund Status & Targets: - Already seeded with US$ 10 Mn. - Expected inflow of US$ 25 Mn within the next 30 days. - Target Assets Under Management (AUM): US$ 100 Mn within 6–12 months. • Performance Track Record: - Building on a prior strategy that delivered USD returns of 25.60% (2025), 48.55% (2024), and 38.50% (2023). - Cumulative returns of 77.55% since December 2021, significantly outperforming the MSCI Frontier Markets Index. • Investment Strategy: - Focuses on listed equities and fixed income (Sovereign and Corporate bonds in USD/LKR). - Targets high-growth sectors: Banking, Consumer, and Export-oriented industries. - Leverages attractive equity valuations currently at ~11x price-to-earnings. • Market Outlook: - Capitalizes on Sri Lanka's economic restructuring, stable debt profile, and rebounds in Tourism and Manufacturing. - The UCITS structure provides a 30% liquidity buffer, signaling Sri Lanka's readiness to operate within international regulatory frameworks.

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Sri Lanka to Host Landmark Global Investment Forum on June 10 📈

• Event Overview: The Sri Lanka Export Development Board (EDB) has announced plans for what is expected to be the largest and most extensive investment forum in the country’s history, scheduled for June 10, 2026. • Strategic Objective: The forum aims to bring top-tier global investors to Sri Lanka to facilitate direct, face-to-face engagement with local exporters, focusing on expanding international market linkages. • Sector Impact: The initiative targets growth across key national sectors, including export manufacturing, apparel & textiles, and agricultural exports, by providing a platform for discussions on expanding export opportunities. • Key Highlights: • Expected to be the most "extensive and attractive" gathering of its kind in Sri Lanka. • Focus on strengthening global buyer-investor relationships. • Led by EDB Chairman Mangala Wijesinghe to drive long-term export sector growth. _Note: Summary based on provisional EDB announcements as of February 25, 2026._

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## Capital Alliance Lists Third Closed-End Fund on CSE 📈

Capital Alliance Investments Ltd (CALI) officially listed the units of its CAL Three Year Closed End Fund on the Colombo Stock Exchange (CSE), marking another milestone in the growth of structured investment vehicles in Sri Lanka. • Listing Details: A total of 841,263,375 units were listed following a ceremonial bell-ringing at the CSE. This follows CALI’s previous launches of the Five Year Closed End Fund (2025) and the Five Year Optimum Fund (2024). • Fund Strategy: The fund is a closed-end fixed income unit trust with a three-year tenure. It focuses on capital preservation and growth through a diversified portfolio of fixed income instruments, governed by strict internal credit filters and liquidity monitoring. • Market Context: The listing reflects rising domestic interest in unit trusts as a professional entry point for retail investors. In a stabilizing yield environment, these funds aim to provide predictable cash flow and channel national savings into productive economic activity. • Sector Impact: This development strengthens the financial services sector by expanding the range of professionally managed investment products available, supporting broader capital market development during the country’s economic recovery.

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Understanding Fixed Income: Bonds & the Sri Lankan Market 📈

A collaborative insight by CFA Society Sri Lanka, SEC, and CSE highlights the role of bonds in building resilient portfolios through stable income and risk mitigation. • Core Mechanics • Bonds act as loans to the Government or corporates in exchange for regular "coupon" (interest) payments. • Maturity periods: Short-term (<3 yrs), Medium-term (3–10 yrs), and Long-term (>10 yrs). • Secondary Market Inverse: Bond prices and interest rates move in opposite directions; falling rates boost existing bond values. • Market Instruments in Sri Lanka • Government Securities: Treasury Bills (discounted short-term) and Treasury Bonds (fixed-term) issued via CBSL. • Corporate Debentures: Companies issue debt for expansion, typically with ~5-year maturities, often listed on the CSE. • Sustainable Finance: Emerging Green, Blue, and Social Bonds (GSS+) targeting ESG-focused projects. • Yields & Risk Comparison • Historical returns (1994–2024): T-Bills averaged 11.34% with no principal loss, vs. ASPI (shares) at 14.57% with high 37.10% volatility. • Key risks: Interest rate risk, inflation risk, credit (default) risk, and liquidity risk. • Credit ratings (e.g., Fitch, Moody’s) help assess an issuer's likelihood of debt repayment. • Investment Strategy • Bonds offer predictable income and priority in liquidation over shareholders. • Recommended for diversification to offset stock market volatility, especially for conservative investors and retirees.

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## Patient Capital Rebuilding the North: $ 5M Deployed 📈

Veteran banker Rajendra Theagarajah, via the Cinnamon Global fund, has outlined a "patient-capital" model to drive sustainable wealth in Sri Lanka’s Northern Province, moving away from charity toward long-term growth. • Overall Investment & Strategy Total Deployed: Approximately US$ 5 Mn over four years. Focus: Growth-stage enterprises (not startups/seed funding). Model: Revenue-linked returns instead of traditional collateral or interest. Ticket Sizes: Typically US$ 25,000 – 50,000 per entity; largest single investment at US$ 700,000. • Sector Breakdowns & Verticals Agriculture: Focus on value addition and heritage rice (expanded to 350+ farmers). Aquaculture & Fisheries: Supporting coastal economic development. ICT/BPM: Innovative ventures to retain local talent and prevent urban migration. Logistics: Services supporting the broader regional ecosystem. • Key Impact Highlights Financial Inclusion: Transitions informal businesses into the formal banking system through governance and compliance support. Agricultural Tech: Implementation of soil mapping and AI-driven crop advisory for heritage rice. Export Potential: Targeting UK and US markets for low-glycemic rice varieties. Local Empowerment: Focus on Tamil-language engagement and grassroots trust-building to bridge knowledge gaps.

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Gold & Silver Markets Shaken by Global Crash: Implications for Sri Lanka 📈

The global financial landscape witnessed a seismic shift as gold and silver prices suffered a sharp collapse, erasing an estimated US$ 3 Trillion in market value within 90 minutes. Driven by algorithmic selling and mass profit-taking, the "flash crash" has critical repercussions for Sri Lanka’s export-driven economy. • Market Breakdown & Volatility • Gold prices plunged to approximately US$ 5,135/oz, while silver fell to nearly US$ 109/oz. • Locally, 24K gold reached a milestone of Rs. 435,050 per 8g (1 sovereign) earlier in February before the correction. • The crash was accelerated by high-frequency trading and margin calls, impacting global liquidity. • Sector Impact & Exports • Gems & Jewellery: As a net importer of gold for manufacturing, Sri Lanka faces extreme volatility in working capital and inventory valuation. However, the sector showed resilience in 2025, with Diamonds, Gems & Jewellery exports estimated to grow 46.15% YoY (reaching US$ 23.91 Mn in Dec 2025). • Apparel & Textiles: Remained the top revenue driver, earning US$ 4.9 Bn in 2025 (+5.34% YoY). • Tea: Export earnings reached US$ 1.5 Bn (+4.97% YoY) in 2025. • Economic & Policy Outlook • Total exports for 2025 reached US$ 17.25 Bn (+5.6% YoY), with a US$ 20 Bn target set for 2026. • Global volatility pressures the Sri Lankan Rupee and complicates Central Bank reserve valuations, as gold is a key component of official foreign exchange reserves. • Experts advise a shift from price speculation to margin protection and design-based value addition for local stakeholders.

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Unit Trust Industry Hits Rs. 610 Bn Asset Milestone 📈

Sri Lanka's unit trust industry recorded a strong start to 2026, with Assets Under Management (AUM) growing 6.1% YoY to surpass the Rs. 600 Bn mark by end-January. • Overall Growth: Total AUM reached Rs. 610 Bn, marking a 3.8% increase from December 2025. The industry now comprises 84 funds managed by 16 companies. • Sector Performance: • Equity-related funds were the primary driver, doubling YoY to Rs. 67 Bn and surging 10.2% in January alone. • Fixed income funds maintained steady growth, rising 2.9% YoY. • Investor Participation: The industry added 3,110 new unit holders in January (+35.0% YoY), bringing the total investor base to 147,020—a 25.7% YoY increase. The shift toward equity reflects high investor confidence in capital market performance and a strategic move toward long-term capital appreciation. The Unit Trust Association of Sri Lanka (UTASL) continues to focus on enhancing financial literacy and accessibility to further integrate retail investors into the formal economy. _Data based on UTASL January 2026 industry report._

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## 📈 Understanding Unit Trust Disclaimers in Sri Lanka

The Unit Trust Association of Sri Lanka (UTASL) clarifies that mandatory disclaimers in unit trust advertisements are designed to protect investors, not fund managers, by ensuring transparency and realistic expectations. • Core Purpose of Disclaimers Since unit trusts are market-linked—investing in government securities, bonds, and equities—returns are subject to market volatility. The SEC strictly prohibits guaranteed returns to prevent misleading investors. • Decoding Key Phrases • "Yield is variable": Indicates returns fluctuate based on interest rate shifts (for money market funds) or share price movements (for equity funds). • "Past performance is not indicative of future performance": A reminder that historical gains do not guarantee future results due to changing economic conditions. • The Role of Documentation • KIID (Key Investor Information Document): A mandatory SEC-regulated document detailing fund risks, fees, and suitability. • Fact Sheets: Provide concise, regular updates on fund performance and asset allocation. • Sector Significance Unit trusts promote financial inclusion by offering professional management and diversification to retail investors. This industry, comprising 16 licensed companies, plays a vital role in mobilizing capital for national economic growth. _Note: Information based on industry insights provided by UTASL on February 17, 2026._

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Sri Lanka Investment Forum 2026: Focusing on Green Transition & Economic Recovery 📈

The Board of Investment (BOI) is set to host the Sri Lanka Investment Forum 2026 on 30 March at Cinnamon Life, Colombo. Partnering with the EU, ADB, and ESCAP, the event aims to showcase the nation's landscape for sustainability and tech-driven growth. • Core Theme: Investing in Sri Lanka’s green and connected future, with a heavy focus on renewable energy, green finance, and economic recovery strategies. • Sector Highlights: • Manufacturing: Emphasis on value-added processing, pharmaceuticals, and industrial manufacturing. • Services: Focus on logistics, integrated warehousing, and aviation services. • Infrastructure: Opportunities in technology/innovation parks, university towns, and "cinema cities." • Leisure & Recreation: Targeted growth in nautical tourism, waterfront developments, and theme parks. • Key Features: The forum will include an exclusive EU-SL Investor Dialogue, B2B matchmaking sessions, and deep dives into green finance instruments to fund the transition. • Support: Co-funded by the European Union with strategic support from the ADB and UN ESCAP to align with international sustainability standards.

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📈 SME Forum: SEC & CSE Target Regional Business Growth

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) are hosting an issuer forum today, 13 February 2026, in Weligama. The initiative aims to bridge funding gaps for regional businesses by encouraging engagement with the capital market. • Overall Market Strength (2025): • Market Capitalisation: Exceeded Rs. 8.5 Trillion. • New Listings: 25 total (including 6 new companies raising debt and equity). • Innovative Instruments: Introduction of Blue Bonds, Green Bonds, and Sustainable Bonds. • Key Focus Areas for SMEs: • Transitioning to the Empower and Diri Savi boards for easier listing. • Strategies for succession planning, governance, and wealth management. • Reducing reliance on traditional bank credit in favor of risk capital. • Strategic Outlook: The forum highlights a shift toward broad-basing companies across Sri Lanka. By leveraging a buoyant market—noted for significant volume increases—SMEs in sectors like tourism and agribusiness can access mid-to-long term capital to catalyze expansion.

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📈 TESS Agro to Raise Rs. 250 Mn via Private Placement

TESS Agro PLC has announced a strategic shift in its funding plans, opting for a private placement of shares to raise Rs. 250 million, replacing a previously proposed debenture and warrant structure. • The Deal: The company will issue up to 125 million ordinary voting shares (approximately 18.5% of issued voting shares) at Rs. 2.00 per share. • Investor: The shares are to be issued to Oman-based SE Capital Trading SPC. • Purpose of Funds: Proceeds are earmarked for the repayment of existing borrowings, meeting working capital requirements, and funding capital expenditure. • Financial Context: As of Dec 2025, the company reported long-term borrowings of Rs. 343.3 million and short-term debt of Rs. 156 million. Net assets stood at 39 cents per share. • Market Reaction: Following the announcement, TESS Agro voting shares closed at Rs. 2.10 (down 10 cents), while non-voting shares remained unchanged at Rs. 1.50. The move is part of a broader capital restructuring for the agriculture and export sector firm and remains subject to shareholder and regulatory approvals from the CSE and SEC.

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**Politics & Government Impact**

Diplomatic Tension: France Questions Legitimacy of US-Israeli Strikes on Iran 🌍

• Geopolitical Context: France’s Foreign Minister, Jean-Noel Barrot, has publicly questioned the legitimacy of "unilateral" military actions taken by the US and Israel against Iran. • Diplomatic Stance: The French government asserts that such use of force should have been debated within the United Nations Security Council to acquire necessary international legitimacy. • Safety Update: As per provisional reports from the Ministry in Paris, no French casualties have been recorded at this stage. • Economic Implications: While specific trade data was not provided, such escalations in the Middle East typically impact global energy prices and shipping routes, which are critical to Sri Lanka's import costs and energy security.

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## Former SIS Chief Suresh Sallay Arrested Over Easter Attacks 📈

The Criminal Investigation Department (CID) has arrested former State Intelligence Service (SIS) Chief Major General (Retd.) Suresh Sallay in connection with the 2019 Easter Sunday terror attacks. This marks a high-profile development in the investigation of the bombings that killed 279 people and severely impacted the tourism sector. • Arrest & Detention Details Custody: Arrested in Peliyagoda by the CID under the Prevention of Terrorism Act (PTA). Detention: Authorized for a 72-hour period for interrogation regarding conspiracy and aiding/abetting. Evidence: Authorities cite "adequate evidence" emerging from ongoing probes into the April 21, 2019, coordinated bombings. • Background & Context Career Path: Served as Director of Army Intelligence, then SIS Chief (2019–2024). He most recently served as an adviser at the Sri Lankan High Commission in Malaysia. Allegations: Previously linked to the plot by whistleblowers in international documentaries, though he has consistently denied all involvement. Political Significance: This is the most significant arrest since President Anura Kumara Dissanayake took office, following pledges to expedite justice for victims. • Economic & Social Impact National Security: The move is seen as a major breakthrough in addressing the complexities of the attacks beyond the immediate suicide bombers. Tourism Recovery: Resolving the investigation remains critical for long-term stability in the hospitality and travel industries, which saw a sharp decline following the 2019 events. _Summary based on provisional police reports and current media disclosures._

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Real Estate

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National Program Launches to Grant "Himikam" Freehold Title Deeds 📈

President Anura Kumara Dissanayake has officially inaugurated the national "Himikam" program to transition state-held land permits into absolute freehold ownership, aiming to modernize Sri Lanka’s land administration and economic productivity. • Strategic Shift: The initiative replaces restrictive permits under the 1935 Ordinance with freehold deeds under the State Lands Ordinance No. 8 of 1947. This allows citizens to utilize land as flexible economic units without previous legal constraints. • Implementation: • The program began in the Anuradhapura District with the initial distribution of 500 title deeds. • It will be implemented island-wide for permits voluntarily surrendered to the State. • Focus remains on balancing land release with national food security and agriculture requirements. • Economic Vision: The government aims to move away from "outdated inherited economies" by providing land access for industries built on modern technology and scientific advancement. • Key Objectives: • Remove political motives from land distribution. • Empower the farming community and general public with collateralizable assets. • Systematic allocation of land to attract contemporary global economic strategies.

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📈 Home Lands Unveils Landmark US$ 300 Mn Luxury Project at Port City Colombo

Sri Lanka’s real estate leader, Home Lands Group, has announced a strategic entry into Port City Colombo with a massive independent investment, reinforcing local developer confidence in the Special Economic Zone (SEZ). • Key Financials: The group secured a 3-acre mixed-use land parcel for US$ 40.1 Mn (approx. LKR 12.5 Bn). This marks one of the largest single-developer investments by a Sri Lankan firm in the project without foreign partners. • Project Highlights: Planned US$ 300 Mn mixed-use development featuring twin 40-storey towers. The "vertical sanctuary" will offer over 600 ultra-luxury units inspired by a forest resort concept. • Strategic Location: Situated in the Central Park District, the development commands 40 acres of parkland, seamless waterway connectivity, and direct oceanfront access with beach entry. • Economic Impact: As the first Sri Lankan-led independent project of this scale in the SEZ, it signals a major boost for the construction and urban development sectors, enhancing the scope for high-value service exports and foreign investment. • National Context: Chairman Nalin Herath emphasized that the move reflects the financial strength of homegrown real estate players to deliver global-scale projects, positioning Colombo as a competitive regional lifestyle hub. 🏙️ Based on project announcement data (February 2026).

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Colombo Land Values Surge 10.6% in H2 2025 📈

The Central Bank of Sri Lanka (CBSL) reports that the Land Valuation Indicator (LVI) for the Colombo District reached 261.9 in the second half of 2025, maintaining a steady upward trajectory since 2023. • Overall Growth: The LVI increased by 10.6% YoY and 2.1% on a semi-annual basis compared to H1 2025. • Sector Breakdowns: • Residential: Recorded the highest growth, up 12.4% YoY (Index: 273.1). • Commercial: Increased by 11.3% YoY (Index: 260.6). • Industrial: Showed a more moderate rise of 8.0% YoY (Index: 251.9). • Context: The valuation, based on 2017 prices (H1 2017 = 100), covers all 13 Divisional Secretariat divisions in Colombo. The broad-based gains across real estate and infrastructure sectors reflect continued demand in the capital's land market. _Source: CBSL Statistics Department (Provisional Data)_

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Prime Lands Secures Historic Colombo 7 Property for ‘The Elizabeth’ Tower 📈

Prime Lands Residencies PLC has finalized an agreement with the Urban Development Authority (UDA) to acquire the historic Otters Club car park property. This marks a major expansion in the real estate & construction sector, targeting high-end residential demand in Colombo 7. • Strategic Acquisition: The development is set on a rare ~1-acre land parcel in a premium residential enclave. • Project Scale: Features a 23-storey residential tower titled ‘The Elizabeth’, designed as a “private residential estate in the sky.” • Unique Integration: The historic Otters Club will be integrated within the 4th and 5th floors, remaining fully independent and operational. • Luxury Amenities: Includes a grand concierge lobby, business lounge, rooftop infinity pool, sky garden, and a fitness pavilion. This project follows the success of The Grand - Ward Place, reinforcing Prime’s footprint in the luxury housing market. Early reservations are now officially open to investors and homeowners.

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📈 Prime & Melwa Secure US$ 57.6 Mn Marina Land at Port City Colombo

Sri Lankan conglomerates Prime Group and Melwa have entered a joint venture to acquire a 4-acre premium waterfront land parcel within Port City Colombo. The project, managed by Prime Melwa Port City (Pvt) Ltd, marks a significant milestone for local investment in the Special Economic Zone (SEZ). • Project Scope & Financials: The acquisition is valued at US$ 57.6 Mn. The partners plan to develop a mega ultra-luxury apartment complex with an estimated total turnover of US$ 250 Mn. Construction is slated for completion within four years. • Strategic Value: The development targets international investors, expatriates, and business travelers. Being located within the SEZ, transactions are denominated in USD, providing investors with a hedge against LKR currency depreciation and reducing long-term financial risks. • Sector Impact: This move strengthens the real estate and construction sectors' international presence. It represents the lease of the 7th out of 8 available parcels in the Marina District, reflecting a 90% land uptake in the precinct. • Economic Significance: The venture underscores local investor confidence in Port City as a global business and lifestyle destination, aimed at positioning Sri Lanka as a competitive hub in South Asia's luxury property market. Based on official project announcement data. ---

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### 🏛️ Parliament Reworks Electoral System & Formalizes Real Estate Standards

The Speaker of Parliament, Dr. Jagath Wickramaratne, has announced the formation of a Parliamentary Select Committee (PSC) to reform the electoral system for future Provincial Council elections. Separately, new legislation to regulate the real estate sector has officially come into force. Key Legislative Developments: • Electoral Reform PSC: Chaired by Minister Vijitha Herath, this committee is tasked with evaluating the current framework and recommending a suitable electoral formula (reforming or replacing the existing mixed system) to resolve long-standing delays in provincial polls. • Real Estate Act: The Sri Lanka Institute of Real Estate Professionals Act, No. 6 of 2026 was certified on February 19, 2026. This establishes a professional body to maintain ethical standards, discipline, and public interest in the real estate industry. Sector Breakdown & Implications: • Governance: The PSC includes a diverse 12-member multi-party panel, including members like R. M. Ranjith Maddumabandara and Mano Ganeshan, aimed at building national consensus on governance. • Professional Services: The new real estate act aims to formalize the sector, ensuring that professionals adhere to a statutory code of conduct, which is critical for investor confidence and national economic stability. _Note: Summary based on parliamentary announcements as of February 21, 2026._

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Kristall Spaces Lanka: Shifting Real Estate Focus to Long-Term Yields 📈

Kristall Spaces Lanka, the developer of the All-Suite Resort Talpe Heights in Galle, is introducing a vertically integrated model that moves beyond traditional property handovers to emphasize long-term asset management and investor returns. • Project Overview: The development features 56 luxury residences on Dalawella Beach, targeting the growing demand for high-end serviced residences driven by a 16.7% YoY increase in tourism arrivals. • Yield & Returns: The model aims for a consistent 8–11% annual rental yield, with total combined returns (including capital appreciation) projected at 13–20% per annum. Initial rental projections conservatively estimate 120 days of occupancy in Year 1. • Strategic Partnership: Through its associate, All-Suite Resorts Lanka, the developer provides a 10-year management commitment. This partnership utilizes dynamic yield management software and global marketing networks to optimize occupancy and pricing. • Asset Protection: Professional facility management is central to the model, addressing the "performance gap" in the condominium sector. Continuous maintenance aims to support a projected 5–10% annual capital appreciation by protecting structural integrity in harsh coastal environments. • Economic Context: CEO Simon Atterbury highlighted a 10-year strategy to develop a pipeline of 5,000 beds, aligning with national goals to expand tourism capacity while offering "turnkey" investments for local and international buyers.

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📈 Groundworth Launches "The Estate" in Hokandara

Groundworth Ltd. has officially launched “The Estate”, a premium land and luxury housing development located 700m from Vidyalaya Junction, Hokandara. The project follows the company’s recent "Special Recognition for Land Investments" at the PropertyGuru Asia Property Awards 2025. • Project Scope: Features land plots of 6 perches and above, alongside five elegantly designed luxury houses. The site includes carpeted internal roads, electricity, and pipe-borne water with fully approved deeds. • Investment Figures: Land prices start from Rs. 11.5 million. Based on provisional company data, the project offers a projected Return on Investment (ROI) of 37.5% within a two-year period. • Strategic Location: The development targets real estate growth in the Colombo suburbs, offering proximity to key hubs including Thalawathugoda, Battaramulla, and major expressway interchanges. • Economic Impact: Groundworth aims to set new benchmarks in the construction & real estate sector by focusing on high-growth, strategically located assets that serve as a "foundation of prosperity" for families and investors.

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📈 Fairway Latitude Partners with Pan Asia Bank for Luxury Housing Finance

• Overall Partnership: Fairway Properties has signed an MoU with Pan Asia Banking Corporation PLC to provide tailored home financing for its seventh luxury project, Fairway Latitude, located in Colombo 05. • Financing Framework: Prospective buyers can access flexible housing loans through tripartite agreements. The partnership offers competitive interest rates and streamlined, transparent purchasing processes to enhance accessibility to the real estate sector. • Project Progress: Construction of Fairway Latitude is actively underway with six floors already completed. The development is scheduled for full completion by 2028, featuring two to four-bedroom units ranging from 902 to 2,881 sq. ft. • Sector Impact: This collaboration supports the construction and real estate industries by integrating financial services with urban development. Fairway Holdings has already delivered over 1,000 apartments across six previous projects, including Fairway SkyGardens and Fairway Elements. • Developer & Bank Profile: • Fairway Holdings: A leading developer known for contemporary design and sustainable vertical living. • Pan Asia Bank: A licensed commercial bank focusing on customer-centric solutions, including SME and housing loans.

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📈 Real Estate: Prime Lands Achieves Key Milestone in Colombo Border Project

Prime Lands Residencies PLC (CSE: PLR) has reached a significant construction milestone with the topping out of Tower Cosmos, part of its flagship "The Colombo Border" development in Peliyagoda. The project, delivered ahead of schedule, underscores a recovery in the construction and real estate sectors. • Project Specifics: • Tower Cosmos: 20-story superstructure completed; features 152 two-bedroom apartments. • Sales Status: 100% sold out, reflecting high investor demand for urban living. • Completion Timeline: On track for final delivery by December 2027. • Scale: The broader development spans 6.5 acres along the Colombo-Kandy Road, integrating three residential towers (Brielle, Cosmos, and Amaá). • Financial & Sector Impact: • Growth: PLR reported a 43% YoY revenue increase to LKR 2.80 Bn in Q3 FY2025/26, driven by accelerated progress at this site. • Efficiency: The topping out was achieved four months ahead of schedule, highlighting the group's integrated project delivery. • Economic Context: This progress aligns with a 10.5% expansion in the national construction sector (provisional 2025 data), as the industry rebounds with improved financing conditions. • Strategic Partnerships: The project utilizes a mix of in-house expertise via Prime Construction and strategic collaboration with Sanken Construction Ltd for Tower Brielle, ensuring technical rigor and structural resilience.

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Colombo Ranks Among Asia’s Lowest-Cost Construction Markets 📈

Sri Lanka’s construction sector has entered a stabilization phase, with Colombo maintaining a highly competitive cost position in the Asian region according to the 2025 CIOB Report. • Regional Competitiveness Colombo recorded the lowest construction costs in 5 out of 6 analyzed categories, including high-rise apartments, prestige offices, and hotels. It ranks as the 2nd lowest-cost city in Asia for aggregate construction costs per m². • Material Price Trends (YoY) Key inputs saw significant reductions, aiding overall stabilization: • Reinforcement Steel: -21% • Fuel: -10% • Concrete: -1% • Cement: +3% • Currency & Inflation Impact While costs rose only 13% in USD terms from 2020–2025, they surged 81% in LKR terms due to currency depreciation. In 2025, the LKR remained stable against the USD within a 1% margin. • Labour & Sector Growth • Labour costs rose 5% in 2025, driven by skilled migration and statutory wage hikes. • The construction sector grew 12.2% in Q3 2025, contributing Rs. 499.9 Bn in Gross Value Added. • Outlook Despite upward pressure on labour and financing, the real estate and infrastructure sectors retain a regional advantage. CIOB highlights the need for joint ventures and new technology to address capacity and capital issues. _Source: CIOB Construction Cost Report 2025 (Provisional)_

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## Cabinet Approves Long-Term Leases for BOI Projects in Kerawalapitiya 📈

The Cabinet of Ministers has authorized 30-year leases for two major industrial and logistics ventures on reclaimed land in Kerawalapitiya, Wattala, aimed at boosting manufacturing and supply chain infrastructure. • Industrial Manufacturing Project: Powertech Products Ltd (backed by DHT Cement Ltd) will invest US$ 7 million to establish a factory for fibre cement roofing and flat sheets. The project targets both domestic and export markets. • Financials: One-time lease payment of Rs. 272.20 million plus an annual nominal rent of Rs. 83,500. • Logistics & Warehousing: MAS Freight Wave Terminal Ltd (a subsidiary of M.A.S. Consolidated Ltd) has been allocated land to develop a specialized warehouse supply complex. This supports the apparel & textiles and broader logistics sectors. • Financials: One-time lease payment of Rs. 305.99 million (payable in two installments) with an annual nominal rent of Rs. 90,000. • Strategic Context: The projects utilize a portion of the 400 acres of swampy land previously reclaimed by the Sri Lanka Land Development Corporation. These allocations represent a push toward high-value land use for BOI-approved private sector investments to drive economic growth and employment.

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**Product & Service Launches / Business Expansions**

United Tractors & Equipment Wins Rs. 1.4 Bn Motor Grader Tender 📈

• Overall Deal: The Cabinet of Ministers has officially approved a contract worth Rs. 1,424.25 million (excluding VAT) for the procurement of 75 motor graders. • Winning Bidder: United Tractors & Equipment (Private) Limited secured the tender following a National Competitive Bidding process, beating out four other submitted bids. • Strategic Context: The machinery is designated for use in government development programmes, signaling a continued focus on infrastructure development and construction sectors. • Procurement Process: The bid was evaluated by the High-Level Standing Procurement Committee and presented by the President in his capacity as the Minister of Finance, Planning, and Economic Development. • Status: Approved (based on cabinet meeting proceedings from October 2025 and finalized February 2026).

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HNB & CARMART Partner to Boost Peugeot and LEAP Vehicle Leasing 📈

• Strategic Alliance: HNB PLC has signed a Memorandum of Understanding (MoU) with CARMART Ltd to provide specialized leasing solutions for globally recognized Peugeot and LEAP vehicle brands. • Digital & Physical Integration: The partnership leverages the Carmart.lk platform, merging digital vehicle discovery with HNB’s financing expertise to streamline the customer journey for Sri Lankan buyers. • Key Offerings: • Tailored leasing packages designed for both individual and family mobility needs. • Focus on financial efficiency and flexibility to enhance vehicle ownership accessibility. • Integration of CARMART's automotive marketplace with HNB's retail banking network. • Economic Impact: The collaboration aims to support economic participation by providing flexible financial solutions for premium mobility, helping customers maintain quality lifestyles while achieving mobility goals. _Note: Summary based on latest partnership announcement._

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Political & Government Impact

COYLE Hosts G20 Young Entrepreneurs’ Alliance (G20 YEA) Leadership Assembly 📈

The Chamber of Lankan Entrepreneurs (COYLE) successfully concluded a five-day G20 YEA Leadership Assembly in Colombo, marking a significant milestone for Sri Lanka’s global economic integration. • Strategic Impact: Representing over 500,000 young entrepreneurs globally, the assembly focused on cross-border collaboration and high-level policy advocacy to bridge local innovation with the global G20 policy circle. • Key Engagements: Infrastructure: Delegates toured the Colombo Port City to assess its potential as a premier Special Economic Zone (SEZ) for global trade. Government Relations: Discussions held with the Ministry of Industries focused on legislative frameworks to support startup ecosystems and regional economic stability. Policy Advocacy: The G20 YEA Communiqué was handed to Foreign Minister Vijitha Herath, outlining recommendations for digital transformation, inclusive growth, and sustainable entrepreneurship. • Economic Objectives: The summit aimed to position Colombo as a burgeoning hub for international business while advocating for the removal of trade barriers and expanding access to capital for young founders. • Global Connectivity: Since joining the Alliance in 2024, COYLE has leveraged this platform to integrate Sri Lankan enterprise into the national and international economic agendas, fostering long-term bilateral ties through a high-profile Diplomats’ Evening. _Source: Based on reporting from February 20, 2026._

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**Appointments & Executive Moves**

📈 SriLankan Airlines: Restructuring & Leadership Update

The NPP administration has reaffirmed its decision to maintain SriLankan Airlines under State ownership, despite its long-standing status as a significant fiscal burden. The government is currently navigating a critical financial restructuring while searching for a new CEO to steer the crisis-ridden national carrier. • Financial Performance & Debt • Accumulated Losses: Total losses have reached a staggering Rs. 628.3 Bn (provisional data suggests this increased to Rs. 631.5 Bn by late 2025). • Quarterly Loss: The group reported a loss of Rs. 10.7 Bn for the three months ending June 2025. • State Support: The 2025 Budget allocated Rs. 20 Bn for debt servicing. The Treasury plans a Rs. 100 Bn equity injection over five years to restructure the airline's debt. • Capital Infusion: A recent Rs. 25.2 Bn capital infusion (Dec 2025) was utilized to clear outstanding state bank debt. • Leadership Transition • CEO Search: Received 200 applications for the CEO post, with 75 candidates currently shortlisted. • Criteria: The government seeks a "visionary leader" with 10+ years of senior international airline management experience. • Current Debate: Discussions continue on whether to appoint a foreign expert (like former CEOs Richard Nuttall or Peter Hill) for objectivity or a local professional to ensure national interest and cost-efficiency. • Regional Context • Unlike Sri Lanka’s state-led approach, neighboring nations are divesting: Air India was reacquired by Tata Group, and Pakistan recently privatized Pakistan International Airlines.

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**Industry & Sector News**

**Global & International Business**

Sri Lanka Boosts Global Export Profile at Ambiente Frankfurt 2026 📈

Sri Lanka successfully concluded its participation at the world’s leading consumer goods trade fair in Germany, securing high-quality inquiries and potential export partnerships across diverse sectors. • Overall Impact: Six major Sri Lankan exhibitors joined over 4,600 global participants from 170 regions, showcasing the island’s design and manufacturing expertise to an international audience. • Sector Highlights: • Porcelain: Dankotuwa Porcelain showcased world-class dinnerware, reinforcing Sri Lanka’s reputation for premium ceramics. • Handicrafts: Gospel House Handicrafts and Art Decoration International featured sustainable, fair-trade wooden toys and creative crafts. • Home & Living: Phoenix Industries reported strong interest from new markets, highlighting the demand for innovative plastic and household solutions. • Stationery & Office: The Paperworld segment saw increased engagement for Javana Graphics and AMP Ceylon, opening doors to emerging global markets. • Strategic Value: Participation reinforced Sri Lanka's commitment to sustainability and design-led diversification, essential for reaching the national target of US$ 36 Bn in exports by 2030. • Key Exhibitors: Dankotuwa Porcelain, Gospel House Handicrafts, AMP Ceylon, Art Decoration International, Javana Graphics, and Phoenix Industries. _Summary based on official participation reports from Frankfurt._

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**Corporate News** ### Reasoning: 1. **Main Subject:** Janashakthi Insurance PLC (a specific company). 2. **Primary Action:** A **1:3 share split** (also known as a subdivision of shares). 3. **Category Fit:** Share splits are fundamental **corporate actions** decided by a company's Board of Directors. According to the predefined categories, "Corporate News" specifically includes corporate strategy, governance, and structural changes like restructuring or spin-offs. Since this is an internal administrative change to the company’s share structure—affecting the number of issued shares without changing the stated capital—it falls under **Corporate News**. 4. **Distinction:** While it affects the stock, it is a company-initiated structural event rather than a report on broad "Market News" (market trends/indices) or a "Product Launch."

Industry & Sector News **

Farming Reform: Sri Lanka’s Strategy Post-Cyclone Ditwah 📈

Three months after Cyclone Ditwah (Nov 2025), the focus has shifted from emergency repair to systemic reform in agriculture and infrastructure. Total direct physical damage is estimated at US$ 4.1 Bn (approx. 4% of GDP), necessitating a shift toward climate-resilient economic planning. • Overall Economic Impact Direct Damage: US$ 4.1 Bn (based on World Bank GRADE report). Population Affected: 2.2 million people across all 25 districts. Sector Loss: Agriculture sustained US$ 814 Mn in direct damage. • Sector Breakdowns & Production Risks Paddy: Over 108,000 hectares destroyed; 90% targeted for re-sowing. Vegetables: Prices spiked 100%–350% post-cyclone due to supply chain breaks. Livestock: Massive losses include 37,000 cattle/buffalo and 475,000 poultry. Fisheries: Damage estimated between US$ 66–69 Mn. • Reform Agenda Highlights Infrastructure: Rebuilding irrigation and drainage to future-proof standards rather than historical rainfall averages. Finance: Expanding crop insurance and rapid-trigger disaster financing to prevent rural debt crises. Diversification: Moving away from "all-or-nothing" systems by promoting stress-tolerant crop varieties and ICT/BPM integration for localized early warnings. • Next Steps for Recovery FAO seeking US$ 16.5 Mn for early recovery; currently only 2.4% funded. Focus on "Build-Back-Better" irrigation and shock-responsive safety nets for smallholder farmers. _Summary based on provisional FAO and World Bank data as of February 2026._

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