Industry & Sector News
View all(90)LAUGFS Gas Assures Continuous Supply Amid Logistics Shifts 📈
• The Issue: LAUGFS Gas PLC reports temporary distribution constraints caused by operational limitations at its 30,000-metric-ton LPG import terminal in Hambantota. This has disrupted regular import logistics for the energy sector. • Interim Solutions: • Shipments have been rerouted directly to the Colombo Port. • Stocks have been secured and distribution mechanisms adjusted to ensure domestic demand is met. • The company is coordinating with government authorities to expedite the Hambantota terminal's operational clearance. • Current Status: Despite the shortfall in regular logistics, the company assures an uninterrupted supply of LP Gas to the market. The situation is being managed through these alternative supply chain routes to prevent any domestic energy shortage.
SL Lacks Infrastructure for Full AI Benefits: President Dissanayake 📈
• Infrastructure Gap: President Anura Kumara Dissanayake stated that Sri Lanka currently lacks the advanced infrastructure required to fully leverage AI technology benefits. • Global Context: Speaking at the 'AI Impact Summit 2026' in New Delhi, the President emphasized that the widening digital divide between nations poses risks to global inclusion and development. • Strategic Needs: Highlighted an urgent requirement for international collaboration to ensure AI development is: Equitable Culturally respectful Accessible • Sector Impact: Addressing these gaps is critical for sectors like ICT/BPM and Education, which are vital for future employment and economic diversification. • Status: Based on official statements at the leaders' plenary hosted by the Indian Prime Minister.
📈 Vehicle Registrations Hit All-Time High in Jan 2026
Sri Lanka’s vehicle market saw a record-breaking January, reaching 55,365 units (up from 48,525 in Dec 2025) following the easing of import restrictions. The surge highlights a recovering economy and resilient external sector. • Market Breakdown • Two-wheelers: Dominating with 64.17% of total registrations (35,527 units). • Three-wheelers: Steady growth, led by Indian imports. • Locally Assembled: Rose to 8,239 units, primarily driven by the two-wheeler segment. • SUVs & Crossovers: 7,664 units registered, with Toyota (Raize) and Honda (Vezel) leading. • Sector Insights • Construction: A sharp rise in heavy trucks and tipper registrations indicates the sector has moved "beyond survival mode," with 2025 GDP estimates for the industry 32% above the 2023 trough. • Luxury Segment: While volumes remain low (206 units), high-end imports like Ferrari and Rolls-Royce generate cumulative taxes of nearly 200%, boosting government revenue. • Green Mobility: EV registrations grew to 3,763 units, while Hybrids reached 3,465 units. • External Sector & Trade • Vehicle Imports: Totaled US$ 2.162 Bn for 2025. Monthly imports peaked at US$ 311.1 Mn in Dec. • Current Account: Despite high imports, a surplus of US$ 45.2 Mn was maintained in Dec, supported by record remittances. • Origin: India remains the top source (30,766 units), followed by Japan (9,603) and China (4,959).
UK ETA Glitch Threatens Arrivals from Second Largest Source Market ✈️
• Tourism authorities are addressing a technical issue preventing UK travelers from receiving Electronic Travel Authorisation (ETA) approval notices. • Despite the glitch, travelers who have applied can proceed; airlines have been instructed to allow boarding without the notice. Verification will be handled upon arrival at Bandaranaike International Airport (BIA). • The UK is Sri Lanka's second largest source market, contributing 212,277 arrivals in 2025. • For the first 15 days of February 2026, UK arrivals reached 17,807, bringing the year-to-date (YTD) total to 47,347 visitors. • This disruption occurs during the critical winter peak season. The UK market is vital for foreign exchange inflows due to higher per capita spending and longer average stays compared to regional markets. • Authorities are working to restore normal services to maintain momentum in Sri Lanka’s premium tourism recovery and avoid administrative uncertainty for long-haul travelers. 📉
📈 CIPM Launches Internationally Accredited HR Qualification
The Chartered Institute of Personnel Management (CIPM) Sri Lanka has officially launched its revised Chartered Qualification in Human Resource Management (CQHRM). The qualification has achieved international accreditation by Qualifications Scotland (QS) at SCQF Level 11, equivalent to a postgraduate level. • Key Milestone: This marks a significant step in elevating Sri Lanka’s professional education to global standards, enhancing the global mobility and employability of local HR professionals. • Strategic Alignment: The CQHRM curriculum now integrates modern competencies, including: • Digital and AI-driven HR practices • HR Analytics & Strategic HR Leadership • Sustainability & Global Talent Management • National Impact: Under its Parliamentary mandate, CIPM aims to bridge the gap between academic learning and labour-market demands. Prime Minister Dr. Harini Amarasuriya noted the importance of such qualifications in driving economic recovery and governance reform. • CSR Contribution: Demonstrating commitment to national resilience, CIPM contributed Rs. 4 million to the Rebuild Sri Lanka Fund during the launch event.
📈 National Push for Digital Responsibility & Cyber Careers
Sri Lanka is intensifying its focus on digital resilience through the 5th Annual Youth Summit on Cyber Security. Organized by CICRA and Daily FT with Education Ministry endorsement, the initiative targets the integration of cybersecurity into the national school culture to bridge the global talent gap. • Overall Scope & Impact • Program covered 24 leading government and international schools. • Focus: Transforming cybersecurity from a technical discipline into a fundamental life skill for students. • Outcome: Top 10 performers recognized in a national quiz; completion certificates awarded to participants. • Sector & Industry Highlights • ICT & Digital Education: The Ministry is developing a policy framework for digital transformation, expected for Cabinet approval by March 2026. • Cybersecurity Careers: Industry leaders highlighted a global talent crisis with millions of unfilled roles, positioning cybersecurity as a high-growth economic opportunity for Sri Lankan youth. • AI & Ethical Tech: Experts emphasized balancing AI innovation with ethical responsibility, data protection, and "digital hygiene" to mitigate phishing and social media risks. • Key Focus Areas for Students • Password protection and phishing prevention. • Online privacy and gaming vulnerabilities. • Responsible social media use and digital boundaries. • Institutional Framework • Teachers are being empowered as "digital safety ambassadors." • Sri Lanka CERT and the Ministry of Digital Economy are driving the National Cyber Security Strategy (2025-2029) to secure critical infrastructure and public trust.
Commercial Bank Leads Sri Lanka’s SME Sector Recovery 📈
Commercial Bank of Ceylon has reaffirmed its position as the primary financier for the SME sector, driving national economic recovery through consistent lending and digital innovation. • Overall Lending & Market Share Disbursed Rs. 330.95 Bn to the SME sector in 2024. Accounts for 30.4% of the total industry disbursement from 16 commercial and specialized banks. Maintained status as the largest lender to the SME sector for five consecutive years (2020–2024), with 2025 growth showing similar leadership (provisional data). • Innovation & Digital Ecosystem Launched the Commercial Bank LEAP GlobalLinker platform, onboarding over 14,000 SMEs and connecting them to a network of 400,000 members across 152 countries. Introduced Sri Lanka’s first AI-powered SME Credit Underwriting Solution for faster, hyper-personalized loan approvals. • Sector-Specific Highlights & Inclusivity Women-owned SMEs: Portfolio grew by 22% in 2025 through targeted support. Agriculture & Microfinance: Operates 67 specialized units and 3 'Bank on Wheels' to serve unbanked rural entrepreneurs. Sustainability: Incentivizing green initiatives through the 'Diribala Green Development Loan' for solar installations and eco-friendly practices. • Strategic Priorities for 2026 Focusing on Supply Chain Financing, import substitution, and export-led growth. Expanding the Dirishakthi Value Chain Development Program to transition micro-entrepreneurs into the formal SME stream.
### 📈 Roadmap to a US$ 8 Bn Tourism Industry: Quality Over Quantity
Sri Lanka aims to transform its tourism sector by shifting from a volume-based model to a premium destination strategy, targeting higher revenue with fewer, high-spending visitors. • Economic Targets & Projections Current State: ~1.5M tourists generating US$ 2.25 Bn (avg. $150/day). Proposed Goal: 1.2M tourists generating US$ 5.76 Bn (avg. $400/day). Total Potential: Over US$ 8 Bn by 2030 by integrating specialized sectors. • High-Value Sector Breakdowns Wellness Tourism: Leveraging Ayurveda to tap into a US$ 1.3 Tn global market; aiming for US$ 200M in premium revenue. Medical Tourism: Investing in high-tech equipment to attract elective surgery patients, projected to add US$ 500M. Cultural & Nature: Upgrading sites like Sigiriya and coastal areas to command luxury rates (US$ 500–2,000/night), mirroring the Maldives model. • Strategic Implementation Pillars Infrastructure: Immediate focus on cleanliness and 5-star service standards at beaches and heritage sites. Market Pivot: Ceasing marketing to budget "backpackers" and "digital nomads" in favor of wealthy retirees and luxury travelers. Local Retention: Implementing the "UAE Model" requiring majority Sri Lankan ownership to ensure profits remain within the national economy. Employment: Mandatory training programs to transition the workforce into high-end hospitality roles. • Global Benchmarks UAE: Generates US$ 70 Bn via premium infrastructure and strategic investment controls. Bhutan: Uses a US$ 100/day sustainable fee to maintain exclusivity and fund public services.
Sri Lanka Airports Hit Historic Milestone: 1M+ Monthly Passengers 📈
Airport & Aviation Services Sri Lanka (AASL) recorded its highest-ever monthly traffic in January 2026, signaling a robust recovery for the island's aviation and tourism sectors. • Overall Performance • Total movements: 1,045,097 passengers • Previous record: 1,034,687 (January 2018) • Result: Growth of approx. 1% over the pre-pandemic peak. • Sector Highlights • Tourism: Driving the surge with 277,327 arrivals in Jan 2026—the highest for a single month. • Aviation: High airline activity and traveler confidence boosted movements across BIA, MRIA, and Jaffna airports. • Employment: 184 new recruits recently added to AASL to manage rising operational demand. • Top Source Markets • India (52,061), UK (29,540), and Russia (27,134). _Data based on AASL and SLTDA provisional reports._
Sri Lanka to Showcase Innovation at Dubai FinTech Summit 2026 📈
The FinTech Association of Sri Lanka (FASL) has been named an Association Partner for the upcoming Dubai FinTech Summit (DFS) 2026, scheduled for 12–13 May at Madinat Jumeirah. This partnership highlights the country's growing integration into the global ICT/BPM and financial technology ecosystems. • Global Platform & Strategic Pillars The summit, organized by the Dubai International Financial Centre (DIFC), expects over 10,000 leaders and 1,000 investors. It focuses on seven key pillars: Future-proofing financial systems and AI-driven decision-making. Digital assets, tokenization, and cross-border payments. Sustainability & ESG finance and WealthTech. • Sri Lanka Regional Qualifier at Port City A major precursor to the summit is the FinTech World Cup (FWC) Regional Competition, which will be held on 31 March 2026 at Port City Colombo. Partnership: Organized by FASL in strategic collaboration with Port City Colombo. Opportunity: Winners of the Sri Lanka round will advance to the Grand Finale in Dubai on 12 May 2026 to compete for global investment and mentorship. • Economic Impact & Vision The initiative aligns with Port City Colombo’s goal to become a leading offshore financial center and a hub for South Asia’s fintech innovation. By providing a "regulatory sandbox" and access to private capital, the event aims to scale local startups and enhance employment within the high-value technology sector. _Note: Based on official event scheduling and provisional partner data._
📈 National Debate: Strategic Education Reforms in Sri Lanka
The current discourse on education reform emphasizes a shift from "quick fixes" to a long-term transformational process. Experts advocate for a model that balances modern needs with the country’s unique cultural and familial value systems. • Strategic Foundation The reform objective centers on the "ABCDE" framework—Attendance, Belongingness, Cleanliness, Discipline, and English—to move away from a rigid, exam-centric system toward a holistic, competency-based model. • Key Sector Shifts • ICT/BPM & Digitalization: Mandatory AI education is proposed for children as young as age six, following global trends (e.g., China), though critics warn of an impractical "digitization of everything" without contextual adaptation. • English-Medium Instruction: A priority is placed on making English-medium education permanent from Grade 6 onwards to address the global "knowledge gateway" gap. • Vocational Studies: Greater emphasis on building foundations in automobile engineering, electronics, and programming to enhance employability. • Critical Challenges • Policy Implementation: Recent "bureaucratic haste" led to the postponement of Grade 6 reforms to 2027. • Economic Context: Budgetary allocation for education remains at approximately 2% of GDP, with concerns over "hidden costs" for low-income families. • Stakeholder Roles: Reformists must bridge the gap between futuristic skills and the established "three platforms" of Sri Lankan society: family, religion, and school.
## Financial Ghosting: The Silent Drain on Banking Loyalty 📉
Financial ghosting is emerging as a critical risk for banks, where aggressive customer acquisition is followed by zero engagement. This "silent attrition" leads to dormant accounts that incur costs without generating revenue. • Overall Impact Up to 20–30% of retail accounts in mature markets (Canada, UK, Australia) are low-activity or dormant. Customers ignored in the first 90 days are 30–40% less likely to consolidate balances with that institution. Disengaged clients are 40–50% less likely to adopt high-value products like mortgages or investments. • The Sri Lankan Context Banks in Sri Lanka successfully run salary account campaigns, yet many become "silent shells" within a year due to a lack of follow-up. Professionals often maintain multiple accounts but only actively use the one providing proactive guidance or financial literacy. • Strategic Recommendations Onboarding: Must shift from a one-time "victory lap" to a year-long journey involving financial health check-ins. Digital vs. Human: Hybrid models combining digital efficiency with human trust (e.g., 15-minute advisor calls) report 20–30% higher product adoption. Data Utilization: Use predictive analytics to trigger engagement during key life events like entering the workforce or starting a business. _Note: Analysis based on industry observations and 2022 McKinsey study data._ ---