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Politics & Government Impact

🚢 Colombo Port Upgrades Health Infrastructure with Japanese Grant Support

• Key Highlights: • Health & Mass Media Minister Dr. Nalinda Jayatissa and Japanese Ambassador Akio Isomata inaugurated the new Colombo Port Health Office. • The project aims to strengthen Sri Lanka’s border health security and boost capacity to detect and prevent public health threats entering via the Port of Colombo. • National & Economic Impact: • Enhances international maritime health compliance and border biosecurity for Sri Lanka's primary trade hub. • Safeguards cross-border supply chains and logistics operations against public health disruptions.

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Politics & Government Impact

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🚢 Colombo Port Upgrades Health Infrastructure with Japanese Grant Support

• Key Highlights: • Health & Mass Media Minister Dr. Nalinda Jayatissa and Japanese Ambassador Akio Isomata inaugurated the new Colombo Port Health Office. • The project aims to strengthen Sri Lanka’s border health security and boost capacity to detect and prevent public health threats entering via the Port of Colombo. • National & Economic Impact: • Enhances international maritime health compliance and border biosecurity for Sri Lanka's primary trade hub. • Safeguards cross-border supply chains and logistics operations against public health disruptions.

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Govt Launches Public Complaint Drive to Enhance Public Service Integrity 🏛️

• Overview & Timeline The Sri Lankan Government has launched a public complaint campaign themed ‘A Culture of Integrity – A Clean Sri Lanka’. Jointly organized by the Presidential Secretariat and the Clean Sri Lanka Program, the drive commenced during National Integrity Week 2026 (27–31 July) and is extended across all state and semi-government institutions through 31 December 2026. • Submission Channels Citizens are invited to report corruption, misconduct, and administrative issues via multiple platforms: • QR codes • Email, post, and telephone • Web-based messaging channels • Key Mechanisms & Oversight • Internal Affairs Units across all state bodies will manage public complaints. • A dedicated digital monitoring system will track actions taken by institution heads to drive strict accountability. • Implementation kicked off with the administration of the National Integrity Pledge and a new Code of Ethics across public bodies, pursuant to a circular issued by President's Secretary Dr. Nandika Sanath Kumanayake. • Strategic Impact The initiative seeks to eliminate corruption while enhancing transparency, operational efficiency, and delivery across public administration and the broader public service sector.

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⚖️ BASL Unanimously Opposes Proposed Judges' Retirement Age Amendment

• Key Resolution: The Bar Association of Sri Lanka (BASL) unanimously passed a resolution at its largest-ever Special General Meeting (attended by 3,000–4,000 lawyers) unequivocally opposing the Government's proposed constitutional amendment to extend the tenure of serving judges. • Core Concerns: The BASL cited a lack of institutional necessity, evidence, and prior consultation with the judiciary, Bar, or civil society. It warned that the measure risks placing sitting Supreme Court judges in a conflict of interest and violates international judicial independence standards. • Key Recommendations: BASL urged the Government to prioritize filling existing judicial vacancies in the Supreme Court and Court of Appeal rather than altering tenures. It called for focus on court infrastructure & technology modernization, procedural efficiency, and clearing case delays. • Action Plan: BASL leadership has been authorized to take all appropriate steps nationally and internationally to safeguard judicial independence and oppose measures impacting the legal sector.

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🏛️ NPP Lawyers Back Proposed Judicial Retirement Age Reforms

Lawyers for Public Mandate (LPM), affiliated with the National People’s Power (NPP), have defended proposed constitutional amendments to raise judicial retirement ages, aiming to address judge shortages and reduce court case backlogs. • Proposed Retirement Age Revisions: • Supreme Court: Raised to 67 (from 65) • Chief Justice: Serves until 67 or max 6 years from appointment • Court of Appeal: Raised to 65 (from 63) • High Court: Raised to 63 (from 61) • Magistrates & District Judges: Raised to 62 (from 60) • Key Context & Rationale: • Addressing capacity issues: Only 93 of 110 approved High Court positions are currently filled. • Part of the government's broader anti-corruption agenda and legal system reforms. • Aligns with international standards (e.g., Australia/Denmark at 70, Canada/Brazil at 75). • Dismissed claims that the move threatens judicial independence or targets individual benefits, attributing criticism to politicians facing unresolved corruption cases.

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📈 BASL Seeks Presidential Meeting Over Judges' Retirement Age

• Meeting Request: The Bar Association of Sri Lanka (BASL) has requested a meeting with President Anura Kumara Dissanayake following discussions with Justice Minister Harshana Nanayakkara regarding the proposed constitutional amendment to extend the retirement age of judges. • Association Position: Following a Special General Meeting, BASL submitted an adopted report outlining its opposition to the amendment at this stage, incorporating recommendations from a 2023 study. • Next Steps: The Justice Minister agreed to review the submissions before briefing the President and relevant officials, while BASL clarified that no decisions have been made regarding protests or disrupting court proceedings.

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🚌 Cabinet Approves Rs. 195.89M SLTB Scrap Metal Disposal

• Overview: The Cabinet of Ministers has approved the disposal of accumulated scrap metal belonging to the state-run Sri Lanka Transport Board (SLTB), awarding contracts totaling Rs. 195.89 million to six industrial bidders to clear obsolete assets and generate revenue. • Contract Breakdown: - Ashok Steel Industries Ltd.: Rs. 89.42 million (largest allocation) - S.R. Steel Ltd.: Rs. 47.58 million - IWW Steel Industries Ltd.: Rs. 39.43 million - Udaya Industries Ltd.: Rs. 16.54 million - Kalana Tech Engineering: Rs. 1.69 million - Ceylon Steel Casting Ltd.: Rs. 1.23 million • Key Context: The decision follows recommendations by the High-Level Procurement Committee upon a proposal by Transport, Highways, and Urban Development Minister Bimal Rathnayake, supporting asset monetization within state enterprises and supplying local steel & industrial manufacturing.

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🏛️ Opposition Convergence & Political Consolidation Strategy

• Executive & Policy Decisions: The Cabinet pushed forward controversial term extensions for superior court judges. Additionally, Provincial Council elections were deferred pending a new election law, alongside introducing a draft NGO bill. • Historic Opposition Gathering: A major Opposition conference was convened on July 23 by Opposition Leader Sajith Premadasa following SLPP National Organiser Namal Rajapaksa's invitation to resist judicial interference. The event drew 43 participants, bringing together top political figures including Ranil Wickremesinghe, Dinesh Gunawardena, Prof. GL Peiris, and Dilith Jayaweera. Notable absentees included ITAK, FSP, and CPSL. • Grassroots Dynamics: Multi-Purpose Cooperative Society (MPCS) elections revealed JVP-NPP defeats against combined Opposition blocs led by the SJB. • Electoral Figures & Political Strategy: - The right-wing neoliberal policy base of the SJB and UNP shows a stagnant 20% vote ceiling (e.g., UNP in Feb 2018: 20%, SJB in Aug 2020: 20%, Ranil in Sept 2024: 20%, SJB in Nov 2024: 20%). - Sajith Premadasa achieved higher personal vote shares of 42% (Nov 2019) and 32% (Sept 2024) through progressive populism. - Strategy: Opposition alignment aims to combine parliamentary action with extra-parliamentary mass protest to secure Provincial Council polls and guarantee national elections occur on schedule in 2029.

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US Partners with Sri Lanka to Launch Nationwide Dengue Response Program 📈

• Key Initiative: The US Embassy has partnered with Sri Lanka’s Ministry of Health and the National Dengue Control Unit to launch the Public Health Pest Control and Vector-Borne Disease Response program to address the ongoing nationwide dengue outbreak. • Funding & US Entities: Program is funded through the US Department of War’s Overseas Humanitarian, Disaster, and Civic Aid (OHDACA) program. It brings in expertise from the US Army Pacific (USARPAC) and the 18th Theater Medical Command. • Core Scope: Conducted in Colombo, the program shares technical expertise in preventive medicine, disease surveillance, entomology, and integrated vector management to complement local mosquito breeding eradication, public awareness, and predictive prevention methods. • Socio-Economic Relevance: Strengthens national public health infrastructure and long-term community resilience, mitigating biological risks to local workforce and regional security alongside bilateral frameworks like CARAT and Atlas Angel.

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🇦🇺 Australia Enhances Sri Lanka's Disaster Preparedness with Rescue Boats and Assessment Drones

The Australian Government, through funding procured via UNOPS, has provided emergency response equipment to Sri Lanka as part of its AUD 7 million humanitarian and recovery package. • Overall Support: • Equipment handed over to the Disaster Management Centre (DMC) and National Building Research Institute (NBRI). • Total package value: AUD 7 million for humanitarian and recovery efforts. • Key Equipment & Functionality: • Two rescue inflatable boats delivered to the DMC to strengthen flood evacuation, medical transport, and relief delivery to isolated communities. • Disaster assessment drones designated for the NBRI to enable rapid aerial monitoring and damage assessment of critical infrastructure (settlements, roads, bridges, and embankments). • Strategic Impact: • Enhances operational capability, responder safety, and evidence-based decision-making during natural disasters, supporting local resilience and disaster risk management.

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🤝 Sajith Premadasa Meets Outgoing Chinese Ambassador Qi Zhenhong

Opposition Leader Sajith Premadasa met with the outgoing Chinese Ambassador Qi Zhenhong at the Opposition Leader’s Office in Colombo to review bilateral cooperation and strengthen diplomatic ties. • Diplomatic Recognition Premadasa expressed gratitude to Ambassador Qi for his dedicated contributions toward enhancing Sri Lanka–China diplomatic and economic relations during his tenure. • Core Strategic Priorities Discussions focused on advancing long-term bilateral engagement, specifically targeting key economic drivers such as trade, investment, economic development, and broader development assistance. • Future Outlook Both parties underscored the importance of sustained, constructive dialogue and continuous cooperation to ensure a mutually beneficial partnership moving forward.

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🛣️ Cabinet Approves Procurement for Rs. 15 Bn Ruwanpura Expressway Phase I

The Cabinet has approved the procurement process to award contracts worth approximately Rs. 15 billion for Phase I of the Ruwanpura Expressway Project, aimed at enhancing infrastructure & transport connectivity between the Western and Sabaragamuwa provinces. • Overall Project Details: - Estimated Cost: ~Rs. 15 billion, fully funded via local budgetary allocations under the approved 2026 Budget. - Timeline: Contract selection and awarding scheduled to be completed within 2026. - Implementing Agency: Road Development Authority (RDA). • Scope of Phase I: - Covers the road section from Kahathuduwa to Ingiriya. - Includes the construction of a System Interchange at Kahathuduwa to provide direct integration into the national network via the existing Southern Expressway. • National Context: - Improves regional logistics, transit efficiency, and economic integration between key industrial and agricultural zones in the Western and Sabaragamuwa regions.

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US CODEL Visit Strengthens US-Sri Lanka Ties 📈

• Delegation Overview: US Congresswoman Chrissy Houlahan (D-PA) led a Congressional Delegation (CODEL) to Sri Lanka from July 27–30 to reinforce the bilateral partnership and support a free, open, and prosperous Indo-Pacific region. • Key Discussions & Meetings: The delegation scheduled high-level talks in Colombo with government, military, and opposition figures: • Deputy Defence Minister Maj. Gen. (Retd.) Aruna Jayasekara • Deputy Speaker of Parliament Dr. Rizvie Salih • Opposition Leader Sajith Premadasa • Strategic Focus Areas: Engagement covers key priorities to advance economic development, expand commercial linkages, counter transnational crime, and boost regional stability and security cooperation.

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Corporate News

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Seylan Bank Reports LKR 6.1 Bn PAT in H1 2026, Up 10.8% YoY 📈

• Financial Performance • Profit After Tax (PAT): LKR 6.1 Bn (+10.78% YoY) • Profit Before Tax (PBT): LKR 9.3 Bn (+10.10% YoY) • Total Operating Income: LKR 25.5 Bn (+13.34% YoY) • Net Interest Income: LKR 19.6 Bn (+10.12% YoY) • Net Fee-Based Income: LKR 4.7 Bn (+20.85% YoY) • Total Assets: LKR 976 Bn (up from LKR 921 Bn) • Growth Drivers & Income Sources • Fee growth was driven by cards, remittances, trade, and loans & financial services. • Foreign exchange gains from expanded trade activity boosted other income, offsetting reduced mark-to-market gains on government securities and equity. • The results reinforce stability across banking and financial services. • Balance Sheet & Asset Quality • Loans & Advances: LKR 650 Bn (up from LKR 600 Bn) • Customer Deposits: LKR 771 Bn (up from LKR 733 Bn) | CASA Ratio: 27% • Impaired Loans (Stage 3) Ratio: 1.03% | Stage 3 Cover Ratio: 85.26% • Return on Equity (ROE): 14.74% | Earnings Per Share: LKR 9.57 • Expenses & Capital Position • Operating expenses rose 14.23% to LKR 12.3 Bn due to staff salary revisions and consumable costs. • Total Capital Ratio: 15.56% | Rupee LCR: 175.88%

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📈 Sanasa Life Capital Adequacy Rises to 123% Following Debenture Release

• Key Capital Figures: Sanasa Life Insurance Company PLC reported an improved Capital Adequacy Ratio (CAR) of 123% as of 30 June 2026. Total Available Capital (TAC) reached Rs. 941.6 Mn, keeping capital position comfortably above regulatory minimums. • Regulatory Milestone: The Insurance Regulatory Commission of Sri Lanka lifted the suspension on Sanasa Life’s long-term insurance registration earlier this month, subject to specified regulatory conditions. • Deployment of Funds: Proceeds from the unlisted debenture issue were released from escrow on 21 July and invested in Government securities, reinforcing regulatory compliance and solvency in the insurance sector.

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PickMe Unlocks Over Rs. 22 Bn for Earners as 1Q Net Profit Jumps 45% 📈

Digital Mobility Solutions Lanka PLC (PickMe) reported strong financial growth for 1Q FY2026/27, driving massive micro-entrepreneurship across Sri Lanka despite temporary Middle East-led fuel supply constraints. • Financial Performance • Revenue: Rs. 2.5 Bn, up 40% YoY (from Rs. 1.8 Bn) • Net Profit: Rs. 631 Mn, up 45% YoY (from Rs. 437 Mn) • Tax Contribution: Rs. 773 Mn paid in national taxes • Marketplace & Platform Growth • Gross Transaction Value (GTV): Rs. 25.3 Bn, up 48% YoY • Earner Livelihoods: Over 85% of GTV (Rs. 22 Bn, up 50% YoY) flowed directly to independent drivers and merchant earners • Platform Activity: Total movements rose 43% YoY, while average monthly unique consumers hit an all-time high (+40% YoY, +3% QoQ) • Key Highlights & Sector Impact • Key catalyst for national ICT/BPM, e-commerce, and micro-entrepreneurship, generating scale opportunities for independent drivers and small merchants. • Sequential net revenue eased slightly (-1% QoQ) and net profit moderated (-10% QoQ) due to fuel rationing, higher fuel prices impacting consumer affordability, currency depreciation, and increased IT infrastructure investments.

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📈 JKH Reports Strong Q1 2026/27 Turnaround as EBITDA Rises 26% to Rs. 16.35 Bn

John Keells Holdings PLC reported a significant recovery for Q1 ended June 30, 2026, driven by infrastructure, real estate, and consumer segments. • Overall Financials: Group EBITDA increased by 26% YoY to Rs. 16.35 Bn. Profit attributable to equity holders turned positive to Rs. 62 Mn (vs. a loss of Rs. 804 Mn in Q1 FY26). Excluding net exchange losses, underlying profit reached Rs. 1.95 Bn. • Sector Breakdown: • Transportation: EBITDA surged 223% to Rs. 5.0 Bn, boosted by CWIT Phase 1 reaching full capacity and bunkering operations via Lanka Marine Services. • Property: EBITDA spiked 358%, driven by revenue recognition at VIMAN, TRI-ZEN, and Cinnamon Life. • Leisure: Overall sector faced Middle East travel headwinds, but City of Dreams Sri Lanka EBITDA rose 139% via higher occupancy and casino rental income. • Consumer Foods & Supermarkets: EBITDA grew 21% and 16% respectively, supported by higher footfall and volume expansion in beverages (27%) and confectionery (13%). • Financial Services: EBITDA grew 9%, aided by NTB's growth and the integration of HSBC Sri Lanka's retail banking franchise in May 2026. • Automotive: Over 2,400 vehicles delivered; margins moderated due to demand shifting to lower-priced segments. • Strategic & ESG Highlights: • Diversified into QSR segment via a franchise agreement with 'Wendy's' (first outlet opening by Dec 2026). • Carbon footprint reduced by 12.2% and water withdrawal per revenue decreased by 8.4%.

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📈 ODEL Mall Project Update: Focus Shifts to Zone 1

• Corporate Disclosure: ODEL PLC issued a formal announcement to the Colombo Stock Exchange on July 27, 2026, to address market speculation and clarify the status of its flagship Colombo 07 development. • Strategic Revision: The mixed-use project has been restructured, narrowing the immediate primary focus solely to the completion of Zone 1, construction for which has officially re-commenced. • Timeline & Outlook: The company expects Zone 1 to be fully completed within the next 1.5 to 2 years, providing a realistic 24-month roadmap for shareholders and the public. • Future Plans: Zone 2, comprising a 100-perch land block, is currently being held for future development and is excluded from the immediate construction phase.

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📈 Institutional Investors Raising Red Flags Over Board Governance

Institutional capital is increasingly prioritizing strong corporate governance and board effectiveness over initial valuations, LYNEAR Wealth Management Co-Founder Dr. Naveen Gunawardane warned at the Sri Lanka Corporate Director Summit 2026. • Multiple Board Seats: Excessive board commitments are viewed negatively as they compromise a director’s time, effectiveness, and meaningful contribution to individual companies. • True Board Independence: Investors look beyond regulatory compliance, questioning whether independent directors are genuinely independent or merely "friends and family" who fail to protect minority shareholder interests. • Expertise Over Box-Ticking: Board diversity and composition must focus on industry expertise, accountability, and active oversight rather than serving as a superficial compliance metric. • Investment Criteria: Institutional investors evaluate governance standards and minority shareholder protections first, using valuation only to determine the timing of an investment.

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🎤 Alston Koch Calls for Unity at SLID Corporate Director Summit 2026 📈

• Event Highlights: Internationally acclaimed singer Alston Koch performed at the Fireside Chat of the Sri Lanka Corporate Director Summit 2026, organized by the Sri Lanka Institute of Directors (SLID) at the Cinnamon Grand. • Core Message: Addressing corporate leaders, Koch urged Sri Lankans globally and the domestic business fraternity to unite and support the country and government in driving national growth. • Key Participants: The summit featured keynote addresses and discussions from international and local business leaders, including Dr. Binod Chaudhary (Chaudhary Group), Prof. Sir Nishan Canagarajah (University of Leicester), Sharhan Muhseen (Commercial Bank of Ceylon), along with leaders from the Board of Investment (BOI), IFC, Unilever Sri Lanka, and Deloitte South Asia.

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📈 Remembrance: Killi Rajamahendran's Corporate & Media Legacy

• Overview: Five-year tribute to R. Rajamahendran ("Killi Maharaja"), former leader of the Capital Maharaja Group, highlighting his impact on Sri Lanka's corporate culture and media & broadcasting landscape. • Institutional Impact: Emphasizes his legacy in building resilient organizational cultures and talent development rather than just corporate assets, driving high execution standards and global competitiveness for local enterprises. • Core Sectors & Values: Focuses on media & broadcasting and industrial manufacturing (such as S-Lon), anchoring long-term commercial success, editorial credibility, and stakeholder confidence in a foundation of organizational trust. • Corporate Continuity: Notes the transition of stewardship to the next generation, maintaining the group's foundational culture and focus on corporate governance post-2021.

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## Ceylinco Life Rewards Policyholders with All-Expenses-Paid Malaysia Tour 📈

• Campaign Details: Ceylinco Life hosted 10 policyholder families (40 participants total) on an all-expenses-paid tour to Malaysia under the 19th edition of its flagship 'Family Savari' customer engagement promotion. • Itinerary Highlights: The tour covered key attractions in Kuala Lumpur (Petronas Twin Towers, Aquaria KLCC, KLCC Lake Symphony) and Genting Highlands (cable car, Genting SkyWorlds Theme Park). • Brand Engagement: Accompanied by brand ambassadors Roshan, Kushlani, and Minneth Ranawana, all expenses were fully sponsored by Ceylinco Life to reward customer loyalty within Sri Lanka's life insurance sector.

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📈 Hayleys Agriculture Charts Strategic Course for Market Leadership with 'Where Value Blossoms' Campaign

Hayleys Agriculture Holdings Ltd. has launched its new corporate campaign, ‘Where Value Blossoms’, highlighting its 50-year evolution into one of Sri Lanka’s most integrated agribusinesses across value-added food exports, agri-inputs, and agtech. • Sector Footprint & Export Leadership: • HJS Condiments: Dominates nearly 60% of Sri Lanka's processed fruit and vegetable exports. • Quality Seed Co.: Nation's sole exporter of F1 hybrid flower seeds; features Sri Lanka's largest rainwater harvesting facility (7.6M litres capacity, supplying up to 35% of annual demand). • Hayleys Agro Biotech: Market leader in tissue culture plants exports. • CocoLife: Key exporter of coconut kernel-based products. • Regional Reach: Operates overseas via wholly owned subsidiary Haychem Bangladesh. • Tech & Sustainability Focus: • Digital & Precision Ag: Implemented the OMNIX digital platform alongside AI-driven automation, micro-irrigation, and mechanised harvesting. • Green Practices: 27% of total water requirements are currently sourced via sustainable channels (rainwater harvesting and recycling). Holds global certifications including FSSC, BRCGS, HACCP, SMETA SEDEX, and USDA Organic. • Inclusive & Rural Impact: • Supports an outgrower network of 12,500+ farmers (30% women). • Strong female employment: Over 80% workforce representation at Quality Seed Co. and Hayleys Agro Biotech.

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📈 Beruwala Resorts Plans Rs. 398Mn Rights Issue for Refurbishment

Beruwala Resorts PLC has proposed a Rs. 398 million rights issue primarily to fund the overhaul of The Palms Beruwala hotel and support working capital. • Rights Issue Details: • Capital to raise: Rs. 398.04 million • Shares offered: 318,429,225 new ordinary shares • Ratio: 5 new shares for every 11 existing shares held • Issue Price: Rs. 1.25 per share (vs. market close price of Rs. 2.90) • Financial & Capital Structure: • Stated Capital: Rs. 120 million • Public Float: 29.83% • Major Shareholder: Colombo Fort Hotels Ltd holds a 66.25% controlling stake (as of end-March 2026) • Purpose & Next Steps: • Funds will directly revamp hospitality infrastructure at The Palms Beruwala and meet ongoing liquidity needs. • Implementation remains subject to Colombo Stock Exchange (CSE) listing approval and shareholder consent at an upcoming EGM.

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📈 Ceylon Investment Proposes Rs. 366 Mn Share Buyback

• Total Buyback Value: Up to Rs. 365.99 Mn to repurchase a maximum of 1,800,014 ordinary shares. • Offer Price: Rs. 203.33 per share (stock closed at Rs. 99.70 yesterday). • Entitlement Ratio: 1 ordinary share for every 54 ordinary shares held. • Timeline: Proposed offer period from 2 September to 23 September (subject to regulatory concurrence). • Regulatory & Governance: Board approved the buyback per Articles of Association and signed a Certificate of Solvency. Draft offer document submitted to CSE for approval. • Key Shareholding: Ceylon Guardian Investment Trust holds the top stake (66.58%); public float stands at 33.42% (as of end-March 2026).

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Regulatory & Policy News

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📈 US Effective Tariff Rate Drops to 7.4% Following New Section 301 Regime

• Overall Figures & Policy Shift: The U.S. Effective Tariff Rate (ETR) declined from 9.4% to 7.4% after the temporary 10% Section 122 global surcharge expired on July 24 and was replaced by targeted Section 301 tariffs covering 60 economies. Revised Fitch Ratings estimates using annualized Jan–May 2026 trade flows also contributed to the rate reduction. • Sector & Trade Shifts: U.S. imports of tariff-exempt electronics & semiconductors rose significantly from US$ 340 Bn in 2024 to approximately US$ 800 Bn in 2026. Meanwhile, imports from China dropped by 43% over the same period, significantly shifting U.S. import composition. • Top Markets & ETR Movements: • China: Rose to 22.3% (from 19.2%), maintaining the highest ETR among major partners. • Brazil: Increased to 14.8% (from 11.4%), incorporating a 25% Section 301 tariff. • India: Decreased to 8.3% (from 10.7%). • Vietnam: Reduced to 10.2% (from 13.2%). • Mexico: Dropped to 3.7% (from 5.0%). • Canada: Climbed to 5.3% (from 4.1%), with an additional 50% tariff on US$ 17 Bn of motor vehicle, dairy, and wine imports scheduled for Aug 19, 2026. • Framework Regimes: Section 301 applies a fixed 10% additional duty on imports from India, Mexico, Canada, and the UK, and 12.5% on China and Vietnam. EU and Taiwan imports face capped combined MFN and Section 301 rates of up to 10%, while Japan, South Korea, and Switzerland are capped at 12.5%. _(Based on provisional annualized Jan–May 2026 trade data)_

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📦 EDB Prepares Ceylon Cinnamon Exporters for EU Packaging Standards

The National Packaging Centre (NPC) and Export Agriculture Division (EAD) of the Sri Lanka Export Development Board (EDB) conducted a workshop on "Cinnamon Packaging and Compliance with EU Regulations" on July 22, 2026, drawing nearly 100 participants, exporters, and GI Association members. • Key EU Regulations & Timelines: The workshop focused on the EU Packaging and Packaging Waste Regulation (PPWR), which took effect on February 11, 2025, and faces full enforcement from August 12, 2026. Non-compliance risks market bans, fines, and product recalls. • Critical Action Points for Exporters: Exporters in the spices & agricultural exports domain were urged to implement immediate compliance steps, including: - Eliminating PFAS and heavy metals from packaging - Preparing EU Declarations of Conformity - Ensuring operator identification - Registering under Extended Producer Responsibility (EPR) schemes across EU member states • National & Economic Impact: For Sri Lanka's Ceylon Cinnamon industry—which holds Protected Geographical Indication (PGI) status in the EU—aligning with PPWR standards is crucial to protect brand authenticity, sustain market access, and enhance buyer trust. • Resource Panel & Sector Support: Experts from Control Union Sri Lanka and packaging consultant W. Abhaya Seneviratne provided technical guidance on compliant materials, waste reduction, and product safety. Through this, the EDB aims to modernize Sri Lanka's packaging sector to strengthen global competitiveness.

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Cabinet Approves Merger of Gem & Jewellery Bodies 💎

• Key Institutional Reform: The Cabinet of Ministers approved integrating the Gem and Jewellery Research and Training Institute (established in 1995) as a dedicated Research and Training Division under the National Gem and Jewellery Authority (NGJA). • Strategic Rationale: Proposal submitted by Minister of Industry and Entrepreneurship Development Sunil Handunneththi aims to eliminate operational duplication, optimize resource allocation, and remove policy inconsistencies between parallel state entities. • Legal Alignment: Authorization granted to initiate necessary legal amendments under the provisions of the National Gem and Jewellery Authority Act, No. 50 of 1993 to formalize the unified operational framework. • Industry Context: Focuses on streamlining efficiency and strengthening state oversight to boost Sri Lanka's high-value gem & jewellery export sector.

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📈 Sri Lanka Accelerates IP Reforms to Boost US Trade & Investment

• Key Targets & System Modernization: • Sri Lanka is accelerating legal, digital, and border enforcement reforms to strengthen its IP ecosystem and attract foreign investment, particularly with the US—its largest single export destination. • National Intellectual Property Office (NIPO) aims to cut registration timelines to ~8 months by mid-2027, reducing backlogs from current delays of 1 year for trademarks and 2 years for patents. • Record digitization with WIPO was completed; online trademark searches launched in Feb 2026, with full online IP registration services slated for next year. • Sector & Industry Impact: • Apparel & Textiles: The Joint Apparel Association Forum (JAAF) warned that counterfeit trade has become an organized criminal network, calling for modern cargo scanning and IP protection covering proprietary fabric technologies, construction techniques, and manufacturing specs. • ICT/BPM: Tech leaders emphasized that IP protection intersects with cybersecurity under the Personal Data Protection Act (PDPA), noting that continuous software licensing updates are vital against AI-powered threats. • Agriculture & GIs: Focus remains on strengthening Geographical Indications (GIs) for products like Ceylon Cinnamon to protect collective producer rights globally via the Lisbon Agreement. • Enforcement & Challenges: • Sri Lanka Customs holds ex-officio powers to seize and destroy counterfeit goods under the Customs Ordinance, while the CID Commercial Crime Unit has investigated ~25 trademark counterfeit cases in recent years. • Key bottlenecks remain: public awareness gaps, limited institutional capacity, and multi-year opposition proceedings that hinder small enterprises.

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Govt Launches 'V-Pramithi' Initiative for Consumer Safety 🛡️

• Overview: The Ministry of Science and Technology launched the national "V-Pramithi" programme to ensure strict quality standards and safety for consumer goods sold in Sri Lanka. • Implementation: Launched at Pettah Public Market under the "Clean Sri Lanka" initiative and National Integrity Week. Officials collected random samples for laboratory testing to detect harmful substances, toxins, and heavy metals. • Sector Impact: Focuses on testing key items across the food & beverage (street food, coconut oil, jaggery, treacle, spices), cosmetics, and electrical appliances sectors. • Key Partners: Technical support is provided by the Sri Lanka Standards Institution (SLSI), Industrial Technology Institute (ITI), and Sri Lanka Atomic Energy Board, in coordination with the Ministry of Health, Consumer Affairs Authority, and Sri Lanka Police. • Objective: Aims to protect consumer health, raise market hygiene standards, and encourage local manufacturing and trading compliance with safety benchmarks.

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🇱🇰 Sri Lanka Launches WHO-Backed Alcohol Control Initiative

• Overview: Sri Lanka has officially introduced the Investment Case on Alcohol Control alongside the World Health Organization’s (WHO) SAFER Technical Package aimed at mitigating the health, social, and economic burdens of alcohol consumption. • Economic & Health Focus: The initiative targets the heavy economic costs associated with alcohol-related harms—including healthcare expenditure and lost labor productivity—supporting long-term national health and fiscal sustainability. • Key Strategy: Implementation of the WHO SAFER technical guidelines focuses on high-impact strategies such as strengthening alcohol availability restrictions, enforcing drink-driving counter-measures, and advancing pricing and tax policies.

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⚖️ Government Proposal to Extend Superior Court Judicial Retirement Ages Sparks Governance Debate

A proposed constitutional amendment to raise the retirement age of Supreme Court and Court of Appeal judges has drawn widespread concern from the Bar Association of Sri Lanka (BASL), Judicial Service Association (JSA), and legal experts regarding judicial independence and public trust. • Government Rationale & Objectives: Aims to mitigate case backlogs and maintain experienced leadership in the higher judiciary. Part of broader efforts to resolve systemic court delays that increase operational costs for citizens and businesses. • Legal & Constitutional Concerns: BASL and commentators argue extending the tenure of serving judges creates perceived governmental influence and potential conflicts of interest. The 20th Amendment already expanded judge capacity; experts note existing judicial vacancies remain unfilled, questioning operational necessity. International norms (e.g., ELI-Mount Scopus Standards) emphasize that changes affecting judicial tenure should apply prospectively and undergo broad stakeholder consultation. • Recommended Next Steps: Legal bodies urge establishing an independent committee (Judiciary, Justice Ministry, BASL, civil society) to review structural reforms, prospective application, and genuine operational needs to safeguard democratic governance.

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🏛️ British Council Sri Lanka Transfers Vocational Attestation to TVEC

• Overview & Legal Compliance Effective 1 August 2026, attestation for vocational and technical education qualifications will transfer from British Council Sri Lanka to the Tertiary and Vocational Education Commission (TVEC). The change ensures compliance with the Tertiary and Vocational Education Act No. 20 of 1990, recognizing TVEC as the primary statutory body for Sri Lanka's tertiary regulatory standards. • Key Operational Changes TVEC Scope: TVEC will handle all future attestations for vocational and technical courses, including those tied to UK awarding bodies. Transition Window: British Council will process all applications submitted on or before 31 July 2026. Retained Services: British Council will retain attestation for UK university degrees, graduate diplomas, Cambridge International, Pearson Edexcel, Oxford AQA (O/A Levels), IELTS, Aptis, and ACCA qualifications. • Impact on Education & Workforce Regulatory Integrity: Mandates that institutions offering vocational qualifications register with TVEC to preserve local and global qualification standards. International Recognition: Collaboration with the UK Department for Business and Trade ensures UK vocational pathways remain trusted and aligned with Sri Lankan law.

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📈 Sri Lanka Cabinet Approves Legal Framework to Regulate Crypto & Virtual Assets

• Overview: The Cabinet has approved steps to introduce legislation regulating Virtual Asset Service Providers (VASPs), bringing cryptocurrency and digital asset activities under a formal legal regime. • Regulatory Structure: The Securities and Exchange Commission of Sri Lanka (SEC) will be designated as the primary regulatory authority for VASPs, operating alongside the Central Bank of Sri Lanka (CBSL), Financial Intelligence Unit (FIU), and Inland Revenue Department (IRD). • Driver & Objectives: Addresses regulatory gaps from Sri Lankans using offshore crypto platforms and peer-to-peer exchanges. The move aims to mitigate risks surrounding financial crimes, money laundering, and terrorist financing. • Governance: Proposal submitted by President Anura Kumara Dissanayake (Digital Economy) based on recommendations from a VASP sub-committee under the AML/CFT policy guidance.

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Sri Lanka Apparel Sector Urged to Act as New EU GSP+ Rules Loom 📈

• Key Sector Impact: Apparel & textiles is Sri Lanka’s largest export earner, generating over $5 Bn annually, employing 350,000+ workers, and contributing 40–45% of total exports and 6–7% of GDP. • New EU GSP+ Scheme (2027): The EU adopted revised rules on May 22, 2026, introducing stricter requirements on disability rights, labor standards, environment, and governance. Sri Lanka must formally reapply in 2027 with a credible, evidence-based action plan. Current benefits expire at end-2028. • Key Operational & Economic Risks: • Low Utilisation: Only 49%–59% of eligible exports use GSP+ due to restrictive EU rules-of-origin requiring yarn-stage domestic fabric. • Upper-Middle-Income Risk: World Bank reclassified Sri Lanka to Upper-Middle-Income (GNI $4,670) in July 2026. Maintaining UMI status for 3 consecutive years leads to GSP+ exclusion, making early 2027 reapplication critical to avoid MFN tariffs by mid-2029. • Priority Actions Needed: • Legislative & Reform: Repeal/replace PTA to meet international standards; strengthen human rights, labor, climate, and anti-illicit controls. • Industry Upgrades: Invest in domestic fabric manufacturing, secure regional cumulation agreements, and negotiate rules-of-origin flexibility with the EU.

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📈 Sri Lanka Pursues Accession to RCEP Trade Bloc

• Strategic Scale: RCEP encompasses 15 member countries (10 ASEAN nations + Australia, China, Japan, South Korea, New Zealand), representing ~30% of global GDP, 29% of global trade, and 2.3 Bn consumers. • Export Diversification: Over 60% of Sri Lanka's merchandise exports are concentrated in the US, EU, UK, and India. Accession offers access to faster-growing regional markets to mitigate external risks. • Sectoral Impact: Preferential access and integration into regional value chains will benefit manufacturing, agriculture, services, and technology-based industries, while boosting long-term FDI. • Key Challenges: Requires aligning Sri Lanka's higher tariff and para-tariff structures, boosting institutional negotiating capacity, and supporting vulnerable domestic industries during liberalisation. • Current Progress: Sri Lanka submitted its formal Letter of Intent in June 2023, with recent encouraging signals from founding members Australia and New Zealand.

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⚖️ Sri Lanka Enforces Tougher Tax Compliance and Criminal Penalties Under New Legislation

• Criminal Prosecution Framework: Enactment of Inland Revenue Amendment Act No. 11 of 2026 and VAT Amendment Act No. 14 of 2026 allows prosecution for failing to obtain a TIN, file income tax returns, or attend IRD statutory hearings. Non-compliance can lead to fines up to Rs. 400,000 and 6 months imprisonment. • Expedited Tax Default Recovery: Unpaid taxes can now be directly recovered through Magistrate’s Court proceedings as Court-imposed fines once the assessment is finalized. • 12-Year VAT Limitation Period: Criminal prosecution for VAT offenses can now be initiated up to 12 years from the date of default, significantly extending liability exposure during audits or disputes. • Forty-Fold Penalty Increase: Penalties for tax offenses committed on or after 1 October 2025 have jumped forty-fold—from Rs. 25,000 to a fine of up to Rs. 1,000,000, along with potential imprisonment. • Invoicing, Customs & Refund Fraud: Failure to issue valid tax invoices or customs declarations, as well as submitting false VAT refund claims, are now explicit criminal offenses subject to fines up to Rs. 1,000,000. • Digital Services Rules: Registered non-resident digital service providers face administrative penalties of up to Rs. 50,000 for failing to submit required supply statements.

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Industry & Sector News

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🌊 Sri Lanka Top Choice for Indian Travelers Seeking Coastal Diversity

Search data from digital travel platform Agoda highlights a surge in demand from Indian travelers expanding their international beach escapes for July and August. Sri Lanka is emerging as a premier destination due to its diverse coastal offerings beyond traditional beach stays. • Key Destinations & Attractions: • Arugam Bay: Gaining traction as a leading South Asian surfing hub. • Trincomalee: Popular for serene marine life and calm bays. • Mirissa: Major draw for whale-watching experiences. • Galle & Bentota: Favored for historical charm and classic beach retreats. • Market & Economic Impact: • Broadens Sri Lanka's appeal within the tourism sector, supporting market diversification and local coastal economies. • Positions the island alongside major regional competitors like Bali, Phuket, and Mediterranean spots. • Industry Sentiment: Agoda notes Indian travelers are increasingly seeking variety, immersive culture, and different coastal landscapes over standard island holidays.

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🚌 104 New Metro Buses Arrive to Modernize Sri Lankan Public Transport

• Overview: A total of 104 brand-new Metro buses arrived in Sri Lanka on Wednesday (29) as part of national efforts to upgrade the efficiency, capacity, and service quality of the public transport network. • Fleet & Accessibility: Imported from China’s Foton International Corporation, the low-floor buses are designed to improve passenger comfort and accessibility, particularly for elderly commuters and persons with disabilities. • Operational Rollout: The fleet will operate under Lanka Metro Transit—a subsidiary of the Sri Lanka Transport Board (SLTB)—with commercial deployment expected across key urban transit routes by September 2026. • Economic Sector Impact: The fleet addition supports infrastructure development and urban commuter efficiency, enhancing productivity within Sri Lanka's broader transportation & logistics sector.

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📈 Sri Lanka Tourism Crosses 1.3 Mn Arrivals as Indian Market Drives July Recovery

• Overall Performance: Sri Lanka welcomed 167,401 tourists during the first 26 days of July (provisional data), edging up by 0.11% YoY compared to 167,218 in 2025. Daily average arrivals reached 6,439, rebounding strongly from June's low of 124,551. Year-to-date (YTD) arrivals crossed 1.3 million, though remaining ~2% YoY lower. • Top Source Markets (July): India led with 38,785 visitors (23% of total), supported by expanded flight operations via SriLankan Airlines and IndiGo. Other top markets include the UK with 18,419 (11%), Netherlands with 10,540 (6%), China with 10,238 (6%), and Australia with 8,024 (5%). • Cumulative YTD Breakdown: India: 332,468 visitors (25% share) UK: 126,986 visitors (10% share) China: 86,409 visitors (7% share) • Key Industry Drivers: Growth in non-traditional source markets was aided by the Government’s free-visa scheme. While improved air connectivity supports recovery, long-haul travel faces regional uncertainties, making regional source markets vital for employment and economic stabilization. An interim market-specific promotional campaign is set to roll out next month to boost H2 2026 targets.

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📈 APB Hosts Technical Session on Safeguarding Banking System from Digital Fraud

• Event Overview: The Association of Professional Bankers (APB) Sri Lanka hosted its first technical session of 2026, titled "Building Trust in a Digital Era: Safeguarding the Banking System from Fraud," at the BOC Head Office Auditorium. Marking an industry milestone, it was the APB's first live-streamed session to reach outstation and overseas banking professionals. • Key Insights: • Keynote by Levent Kutluca (HSBC Managing Director / Group Head of Fraud) emphasized balancing a seamless user experience with robust security infrastructure. • Proposed an multi-stakeholder Ecosystem Approach involving governments, banks, telcos, customers, law enforcement, and media to mitigate national fraud threats. • Interactive Q&A moderated by HSBC Sri Lanka Head of Audit Dulan Abeyratne. • Industry Context & Resilience: • APB President Dilshan Perera highlighted banking & financial services cyber risks as defining systemic threats driven by an evolving threat landscape. • Urged treating cyber and fraud risk as board-level priorities built on strong governance, cross-sector collaboration, and continuous workforce upskilling.

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📈 Sri Lanka’s Innovation Gap: Execution & Institutions Hold Back Growth

• Key Trade & Economic Data: - Merchandise exports rose from US$ 8.6 Bn (2010) to US$ 12.8 Bn (2024), averaging just 3.4% annual growth. - Integration into global value chains stands at 8.1%, far behind India (26%) and Vietnam (34%). - R&D expenditure accounted for a minimal 0.11% of GDP in 2022. - Sri Lanka ranks 93rd out of 139 economies in the Global Innovation Index. • Sector Breakdown & Export Risks: - Export revenues remain heavily concentrated in traditional industries including apparel, tea, coconut, and rubber. - ICT/BPM has emerged as the second-largest export sector, but faces automation risks from rapid AI adoption. - Despite high-grade natural resources like graphite, Sri Lanka misses downstream high-value manufacturing due to weak commercialization mechanisms. • Institutional Bottlenecks: - Experts highlight that institutional weaknesses, anti-export bias, and policy fragmentation—not lack of talent—are the primary barriers. - Growth is hindered by accelerating brain drain, limited venture capital, slow legal reforms, and weak university-industry collaboration. - Economic recovery requires simultaneous alignment of trade openness, intellectual property rights, digital infrastructure, and private-sector-led innovation.

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7 Star Chakki Atta Foods Proven Low-GI in Peradeniya University Study 🌾

An independent study by the University of Peradeniya confirms that staple foods made with Serendib Flour Mills' 7 Star Chakki Atta fall within the low Glycemic Index (GI) range, offering scientific validation for healthier dietary choices in Sri Lanka's food processing and health & nutrition sectors. • Key Research Findings • Tested foods recorded low standalone GI values: roti at 44, chapati at 45, and puri at 50. • Portions demonstrated moderate Glycemic Load (GL) values between 16 and 19, indicating a steady, sustained release of energy. • Preparation variations had minimal impact on glycemic response. • Meal Pairing Dynamics • Combining atta-based foods with chickpea curry further reduced GI values. • Adding chickpea curry dropped the GI of roti from 44 down to 37, reinforcing the benefit of balanced meal combinations for glucose management. • Economic & National Impact • Addresses a critical gap in local nutritional data as Sri Lanka faces rising Type 2 diabetes rates. • Supports consumer demand for preventive health and strengthens product positioning in the national FMCG market.

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📈 Sri Lanka Convention Bureau Drives Knowledge-Based MICE Sector Growth in 1H 2026

• Strategic Focus: The Sri Lanka Convention Bureau (SLCB) executed 6 key capacity-building initiatives in 1H 2026 to upskill workforce and position Sri Lanka as a sustainable MICE (Meetings, Incentives, Conferences, and Exhibitions) hub. • Capacity & Skill Building: • Youth & Academia: Educated 250+ school students at BMICH (16 May) and 160+ undergraduates at Uva Wellassa University (20 May) on MICE tourism careers and technology trends. • Regional Hoteliers: Upskilled ~60 southern-region venue providers at NH Bentota Ceysands (10 June) on sales, pricing, and venue standards. • Guides & Operators: Trained 60 National Tourist Guides with SLAITO at SLITHM (25 June) in international guest handling and service excellence. • Industry Stakeholders: Engaged 90 corporate clients and experts at BMICH (30 June) on AI marketing and sustainability. • Academic Leadership: Conducted a "Train the Trainer" program for ~40 university lecturers at SLITHM to align higher education with global MICE industry demands. • Economic Impact: Strengthened cross-sector collaboration to expand MICE-ready regional destinations, build high-value service capabilities, and enhance long-term competitiveness in international business tourism. [Sri Lanka Tourism 2026: New Marketing Strategies, Top Source Markets & MICE Hub Development](https://www.youtube.com/watch?v=9PkIG6ghxIo) This official interview outlines Sri Lanka's broader 2026 strategic roadmap for developing Colombo into a central MICE hub and expanding its key tourism source markets.

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IHLC 2026 Set to Shape Sri Lanka's Hospitality Vision for 2030 📈

The Institute of Hospitality (IOH) Sri Lanka Chapter, backed by IOH UK, will launch the International Hospitality Leaders Conference (IHLC) 2026 on 29 September 2026 at Cinnamon Grand Colombo. Key details of the event include: • Event Focus: A strategic leadership platform moving beyond sector recovery to establish long-term global competitiveness, commercial resilience, and digital transformation for Sri Lanka's tourism & hospitality sector. • Vision 2030 Whitepaper: The forum will culminate in the sector’s first collective industry roadmap for the coming decade. • Participation: Will convene 200+ senior industry leaders, including hotel owners, developers, general managers, commercial executives, policymakers, and academic leaders. • Core Pillars: Covers 6 strategic areas—leadership & governance, commercial strategy, digital innovation, sustainability, workforce talent development, and global destination positioning. • Registration & Sponsorship: Delegate registration is priced at Rs. 25,000, with tiered sponsorship options available for strategic brand partnership.

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📈 Critical Mineral Wealth: Why Extraction Rarely Yields Strategic Agency

• Overview: Possessing deposits of critical minerals does not automatically guarantee strategic leverage for developing states. Capital deficits, long development timelines (16–18 years to production), and Chinese dominance in midstream processing present major structural barriers. • The Processing Chokepoint: The true economic value lies in midstream mineral processing rather than raw extraction. Most developing nations export raw or semi-processed ores to foreign processing hubs—such as China or the US—losing out on higher margins and strategic autonomy. • Sri Lanka's Position: • Sri Lanka holds notable deposits of graphite, heavy mineral sands, and phosphate. • Unlike major players (e.g., Indonesia's 59% share in nickel or DRC's cobalt), Sri Lanka lacks market exclusivity or near-monopolistic supply risk, limiting its inherent global geopolitical leverage. • Key Strategic Priorities: • Focus on attracting foreign capital for local value-addition rather than raw exports. • Implement clear mineral governance policies to protect resource sovereignty, environmental sustainability, and local community well-being. • Avoid locked-in, asymmetric dependencies with single foreign entities or mining conglomerates.

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🚑 Suwa Seriya Ambulance Service Marks 10 Years of Service

• Milestone & Scale: The 1990 Suwa Seriya emergency network celebrated its 10th anniversary since launching in 2016. It now responds to ~1,000 daily incidents, covers nearly 30,000 km daily, and maintains an average emergency response time of under 13 minutes. • Establishment & Funding: Spearheaded by MP Dr. Harsha de Silva, the service was initially established through a US$ 23 Mn grant from the Government of India, supported by Indian PM Narendra Modi and former Sri Lankan PM Ranil Wickremesinghe. • Operations & Human Capital: The service currently relies on over 1,500 staff members. Operations are now being overseen by a new management team appointed by President Anura Kumara Dissanayake to further strengthen Sri Lanka's primary emergency medical response network.

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🚀 Sri Lanka’s Seneesa Goonewardena Selected for International ShakthiSAT Mission

• National Selection: 18-year-old student Seneesa Goonewardena was chosen through a national screening process out of 200 Sri Lankan students currently undergoing training under the national STEM education program. • Mission Details: The international space mission will take place from August 22 to 31, 2026, at Gautam Buddha University in India, showcasing local talent in advanced space technology. • High-Level Engagement: During the mission, Goonewardena is scheduled to participate in high-level engagements alongside the Prime Minister and President of India. • Strategic Impact: Framed by the Ministry of Digital Economy as a transformative global opportunity to drive scientific innovation, strengthen international collaboration, and support long-term capacity building in ICT/BPM and high-tech sectors.

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AmCham Sri Lanka & Standard Chartered Partner for ‘SeCure 2026’ Executive Forum 🔐

• Event Overview: AmCham Sri Lanka and Standard Chartered Sri Lanka will host SeCure 2026: Strengthening Organisations Against Tomorrow’s Threats on August 4, 2026, at Courtyard by Marriott, Colombo. • Keynote Expert: Standard Chartered Executive Director & Head of Client & Third-Party Security Chris Fleming will deliver the keynote address and lead an interactive real-time problem-solving exercise. • Panel & Insights: Panel discussion featuring LankaPay Deputy CEO Dinuka Perera, moderated by Microsoft Sri Lanka's Chinthaka Dunuwille, focusing on cyber/fraud incidents, governance, and organizational resilience. • Target Audience: Exclusive breakfast session catering to 150 top decision-makers, including CEOs, CISOs, board directors, and technology leaders across Sri Lanka's corporate and ICT/BPM landscape. • Strategic Focus: Aims to strengthen national cyber resilience and third-party risk management by connecting local leadership with international best practices.

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Product & Service Launches / Business Expansions

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📈 Gateway College Acquires Prime Lands' Regent Country Club in Malabe

• Transaction Overview: Gateway College has acquired the 3.2-acre Regent Country Club property in Malabe from Prime Lands (Pvt) Ltd to establish a new state-of-the-art international school. • Strategic Sector Alignment: The deal strengthens Gateway's expansion in education within Greater Colombo's fast-growing residential region, aligning with Prime Group's focus on large-scale real estate projects. • Property Facilities: The 3.2-acre site includes a banquet hall, conference rooms, offices, a swimming pool, and a gymnasium, serving as foundational infrastructure for the new school campus. • Milestone Context: The landmark transaction coincides with both Gateway Group and Prime Group celebrating their 30th anniversaries this year. • Network Expansion: Facilitated via a phased acquisition approach, the new campus joins Gateway’s existing network of international and Springfield colleges operating across Rajagiriya, Kandy, Negombo, Dehiwala, Ratmalana, Borella, and Nugegoda. [The Regent Country Club Malabe Overview](https://www.youtube.com/watch?v=e5DrVF0IH3A) This video provides a visual tour of the Regent Country Club property in Malabe prior to its transition into a school campus.

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🎬 Scope Cinemas to Anchor The Shoppes at City of Dreams Sri Lanka

The Shoppes at City of Dreams Sri Lanka has announced Scope Cinemas as a major anchor attraction on Level 10, set to open before the end of 2026. • Development Overview: The addition marks a key expansion step since The Shoppes opened in August 2025 within South Asia's first and largest integrated lifestyle destination. • Entertainment Infrastructure: The facility will feature a five-screen multiplex equipped with next-generation cinema technology, alongside two exclusive VIP halls with private lobbies and gourmet dining. • Strategic Context: The phased expansion (currently operating Levels 7 & 8) will soon roll out the waterfront ground floor and Levels 9 & 10, introducing a new food court, expanded entertainment, and nightlife offerings to elevate tourism & retail infrastructure in Colombo.

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📱 PickMe Partnering with Dialog Pay to Expand LankaQR Payments

PickMe has integrated with Dialog Pay, allowing over 1.9 million consumers to make secure LankaQR payments across its mobility and delivery platform. • Service Coverage: Available for PickMe Rides, Flash Delivery, and Trucks services, as well as orders up to Rs. 2,500 for Food and Market. • Ecosystem Scale: Connects PickMe’s network of over 165,000 driver/delivery earners and 5,000+ merchant earners to Dialog Pay’s 100,000+ retail outlet network. • Consumer Rewards: Eligible LankaQR transactions made via Dialog Pay will earn users complimentary Dialog data to encourage digital adoption. • Economic Impact: Accelerates Sri Lanka's shift toward a cash-light economy by connecting major players in the fintech, mobility, and e-commerce sectors.

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📈 ONGC Launches First Deepwater Exploration Well Off Odisha Coast

• Project Overview: Oil and Natural Gas Corporation (ONGC) has begun drilling its first deepwater exploratory well, MN-DW18-1-H-D, in the Mahanadi offshore basin, located ~23 nautical miles from the Konark discovery off Odisha. • Strategic Context: Launched under the Samudra Manthan Campaign, the initiative follows the Centre opening ~1 million sq km of restricted offshore space for oil & gas exploration under the Open Acreage Licensing Policy (OALP). • Resource Estimates: India’s eastern and western offshore basins (depths up to 3,000m) are projected to contain over 5,600 million tonnes of oil equivalent (MTOE) in hydrocarbon potential. • Technical & Economic Impact: Supported by ONGC’s new Deepwater Exploration Mission Centre (DeepX) in Mumbai, the project aims to scale domestic production, mitigate import dependence, and build long-term energy security.

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📈 SriLankan Airlines Boosts Regional Connectivity with Maldivian Partnership

• New Interline Agreement: SriLankan Airlines has partnered with Island Aviation Services (Maldivian) to streamline travel across 17 domestic destinations in the Maldives. • Seamless Itineraries: Passengers can now book multi-carrier journeys using a single electronic ticket via Velana International Airport (Malé) and Gan International Airport. • Flight Operations: The national carrier maintains three daily frequencies to Malé and two weekly frequencies to Gan Island, integrating its global network with domestic island transit. • Economic Impact: Expected to drive passenger traffic, boost sales on regional routes, and enhance corporate and leisure travel convenience between Sri Lanka and the Maldives archipelago.

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📈 AI Legal-Tech Firm 3Rive Joins Anthropic Partner Network

• Partnership Milestone: Australian-headquartered AI legal technology firm 3Rive Technologies has become an official partner in Anthropic’s global Claude Partner Network. • Global & Local Footprint: Serves law firms across the UK and Australia, anchored by its primary engineering and AI development centre located in ICT/BPM and software services hub, Sri Lanka. • Ecosystem Development: Plans to host public Claude workshops, live build demonstrations, and meetups in Colombo to foster local engineering talent and position Sri Lanka on the global AI map. • Operational Integration: Embeds Anthropic's Claude models across its internal functions and delivers legal technology solutions through its trademarked Cognitive Outsourcing model.

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Premium Bogawantalawa Tea Debuts at Tamimi Markets in Saudi Arabia ☕📈

• Market Expansion: Sri Lanka launched its premium tea brand, Bogawantalawa Tea (under the Ceylon Tea Gardens brand), at Tamimi Markets in Riyadh on 9 July 2026. • Exclusive Retail Partnership: Bogawantalawa Tea Ceylon will supply its product range exclusively to Tamimi Markets, the leading hypermarket chain in Saudi Arabia. • Bilateral Trade Impact: Sri Lanka's Ambassador Ameer Ajwad highlighted Saudi Arabia as a key destination for Ceylon Tea. He noted steady growth in Sri Lankan exports to the Kingdom and proposed establishing a dedicated "Sri Lanka Corner" at Tamimi Markets to further diversify the national export basket. • Industry Focus: Company executives emphasized Bogawantalawa's century-old heritage, product innovation, and corporate social responsibility efforts benefiting local estate communities in Sri Lanka.

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📈 Dubai Partners with Julius Baer to Attract Global Wealth

The Dubai Department of Economy and Tourism (DET) signed a strategic agreement with Swiss wealth manager Julius Baer to attract global private clients, family offices, and business owners. The partnership aligns with the Dubai Economic Agenda (D33) to scale long-term capital allocation and private enterprise. • Partnership Scope & Network Julius Baer will leverage its global network spanning over 25 countries and 60 locations to drive investment into Dubai. Group assets under management reached CHF 547 Bn as of June 2026. • Private Wealth Ecosystem Expansion DIFC-based family-related entities surged to 1,289 (up 61% YoY by year-end 2025). DIFC-established family foundations reached 1,115 (up 66% YoY). • Strategic Context Highlights Dubai's focus on international wealth management, family offices, and institutional credibility amidst shifting global economic dynamics. (Note: Directly relevant to global wealth flows, but data on direct impact to Sri Lanka's financial services or FDIs is not specified).

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Blackstone Expands Regional Footprint with New Office in Kuwait 📈

• Global Expansion: US-based Blackstone, the world's largest alternative asset manager, announced plans to open a new office in Kuwait via the Kuwait Direct Investment Promotion Authority (KDIPA). • Timeline & Strategy: The Q3 launch aims to strengthen Blackstone's GCC presence, with plans to announce additional regional offices across the GCC over the coming year. • Economic Context: The strategic move is aligned with supporting Kuwait's long-term economic diversification and reinforcing the region as a destination for sustainable growth and investment.

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💳 People’s Bank Rolls Out Countrywide UnionPay Acquiring Across 14,000+ Terminals

• Strategic Expansion: State-owned People’s Bank has fully activated UnionPay card acceptance across its nationwide network of over 14,000 Point-of-Sale (POS) terminals, running from Galle to Jaffna. • Merchant & Regional Impact: Upgrades apply automatically across all existing POS estate with zero hardware changes, enabling supermarkets, hotel chains, fuel stations, pharmacies, and small retailers to seamlessly process payments. • Tourism & Cross-Border Payments: Allows local merchants to accept UnionPay cards issued in 80+ markets globally, significantly reducing payment friction for inbound travelers and foreign visitors from key source markets including China, Singapore, Malaysia, and the Gulf. • Digital Infrastructure: Enhances the bank's digital framework—complements core banking modernization, QR merchant payments, and contactless POS upgrades designed to support tourism, exports, and Sri Lanka's broader remittance economy.

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Kaspersky Hosts Event to Accelerate Threat Response in Sri Lanka 📈

• Event Overview: Kaspersky hosted 'KasperskySecure: Live in Sri Lanka' on 16 July at Cinnamon Life Hotel, Colombo, convening 80 to 90 security leaders, bankers, and technology partners to address threat response velocity. • Global Threat Metrics: Global daily unique malware samples expanded from ~340,000 (2019) to ~500,000 (2025), driven largely by low to medium-complexity cybercrime. • Technology & Operations: • Focused on bridging gaps in Sri Lanka's rapidly digitizing enterprise attack surface via unified Security Operations Centres (SOC). • Highlighted ICT/BPM and cybersecurity solutions including Extended Detection and Response (XDR), Open Single Management Platform (OSMP), and Kaspersky Next. • Demonstrated AI-driven Managed Detection & Response (MDR) capable of reducing false positives by ~30% and accelerating triage without increasing headcount. • Regulatory & Compliance Alignment: Panelists discussed adapting to local compliance frameworks, including Central Bank of Sri Lanka (CBSL) incident reporting guidelines, the Data Protection Act, and the upcoming Cyber Security Act.

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🤖 SLT-Mobitel Partners as Founding Member & Infrastructure Partner for Sri Lanka's National AI Institute 📈

• Overview: National telecommunications provider SLT-Mobitel has joined as a Founding Member and Infrastructure Partner for the upcoming National AI Institute, aiming to create a globally competitive AI ecosystem. • Objectives: • Unify government agencies, academia, industry, and international partners under a multi-stakeholder framework. • Drive AI research, innovation, policy engagement, and capacity building aligned with national priorities. • Expand access to shared technical resources, high-performance computing, and digital infrastructure. • Accelerate public sector transformation and long-term economic growth. • Key Sectors Impacted: • ICT/BPM & Telecommunications: Positions Sri Lanka as a regional technology hub through world-class infrastructure. • Public Sector & Governance: Establishes national AI governance, policy frameworks, and inter-agency coordination. • Stakeholder Alignment: • Validated at a recent consensus workshop with key leaders from the Ministry of Digital Economy, Sri Lanka Telecom PLC, LEARN, University Grants Commission, and industry experts. _Source: Provisional data based on official corporate announcement._

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Market News

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📉 Asian Markets Waver Amid Fed Rate Uncertainty & Tech Volatility

• Global Equity & FX Trends: Asian shares struggled for direction following a volatile week driven by tech jitters and a divided US Federal Reserve. MSCI’s Asia-Pacific index fell 0.6%, Japan’s Nikkei headed for a 4.0% weekly loss, while yields on 30-year US Treasuries hit a 19-year high of 5.23%. • Energy Markets: Brent crude futures slipped below US$ 90/bbl after surging over 7% a day earlier due to escalating Middle East tensions, though regional tanker shipments continued. • Tech & Electronics Industry: - South Korea’s KOSPI fell 1% (on track for a 15% weekly slump), erasing over US$ 2 Tn in market value amid single-stock leveraged ETF sell-offs. - Samsung posted a 250-fold jump in chip profit while warning of semiconductor shortages extending into 2028. - Tech earnings diverged significantly: Microsoft gained on strong cash flow outlooks, while Meta saw stock declines following a 91% collapse in Q2 free cash flow. • US Monetary Policy: The Federal Reserve kept rates unchanged, leaving bond markets guessing. Futures now reflect a 60% probability of a rate hike in September, with 33 bps of tightening priced in by year-end.

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📈 Global Oil Slips to $89.78 Amid Middle East Volatility

• Market Figures: Brent crude fell 1.06% ($ 0.96) to US$ 89.78/bbl, reversing a 7.91% spike. WTI dropped 0.76% ($ 0.64) to US$ 83.82/bbl, following a previous 6.56% surge. • Middle East Dynamics: Escalating conflicts—including U.S.-Saudi strikes on Iran-backed forces in Iraq and U.S. attacks on Iran—temporarily spiked prices. Price gains cooled as markets priced in geopolitical rhetoric and focused on actual supply flows. • Supply Flow: Around 13 million barrels per day continue to flow from the Gulf via alternative channels and workarounds, despite the closure of the Strait of Hormuz and a Red Sea blockade. • Impact on Sri Lanka: Easing global benchmarks provide temporary relief for Sri Lanka's high petroleum import bill. Lower energy prices help stabilize operational costs for key sectors, including apparel & textiles, tea processing, and logistics, supporting broader macroeconomic stability.

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📈 Short-Term T-Bill Yields Fall for Third Consecutive Week

• Treasury Bill Auction: Short-term yields slid further as the full Rs. 140 Bn offered was raised in Phase I, with demand oversubscribed by 2.09 times. - 91-day yield: fell 9 bps to 9.86% - 182-day yield: fell 3 bps to 10.21% - 364-day yield: held steady at 10.20% • Treasury Bond Market: Secondary market yields rose selectively ahead of today's Rs. 250 Bn T-Bond auction. Maturities traded within 10.00%–12.25% ranges, supported by robust block trade volumes. • Money Market Liquidity: Net surplus liquidity expanded to Rs. 185.96 Bn, reaching a 2.5-month high. CBSL absorbed surplus liquidity via SDFR (Rs. 105.96 Bn at 8.25%), overnight Repo (Rs. 60 Bn at 8.72%), and 3-day term Repo (Rs. 20 Bn at 8.75%). • Forex Market: The Sri Lankan Rupee (LKR) appreciated against the USD, closing spot contracts at Rs. 336.10/336.20 compared to Rs. 336.20/336.30 previously, with a daily volume of US$ 102.75 Mn.

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📈 CSE Extends Recovery to Second Session as Sentiment Improves

• Overall Market Performance: The Colombo Stock Exchange continued its upward trend for a second straight session, supported by easing Middle East geopolitical tensions. • ASPI: Up 0.20% (+41.92 pts) to close at 21,229.14 • S&P SL20: Up 0.21% (+12.66 pts) to close at 5,961.40 • Market Breadth: Positive (124 gainers vs. 84 losers) • Turnover & Foreign Activity: • Market Turnover: Over Rs. 2.00 Bn (~87.5 Mn shares traded) • Foreign Flow: Net selling outflow of over Rs. 1.00 Bn • Sector & Stock Highlights: • Retailing Sector dominated turnover, contributing 51% of daily activity. • Banking and Capital Goods sectors collectively accounted for 24% of turnover. • Top ASPI Contributors: Colombo Dockyard, John Keells Holdings, Commercial Bank, ACL Cables, and NDB Bank. • Market Sentiment: Market gains were largely driven by buying interest in selected blue-chip counters, backed by high-net-worth and institutional participation, while retail activity remained at average levels.

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📈 CSE Clear Marks 1st Anniversary with LKR 1,188 Bn in Settled Trades

• Milestone Overview: CSE Clear (Pvt) Ltd, Sri Lanka's first Central Counterparty (CCP) and a fully owned subsidiary of the Colombo Stock Exchange (CSE), completed its inaugural year of operations on 28th July 2026. • Key Operational Figures: - Successfully cleared and settled LKR 1,188 Bn worth of equity market transactions. - Processed over 8 million trades with high operational reliability. • Financial & Market Impact: - Replaced counterparty risk between buyers and sellers with a central clearing framework, modernizing Sri Lanka's securities market post-trade infrastructure to align with global standards (PFMI). - Bolstered capital market stability by implementing a comprehensive margining framework and establishing a Contributory Guarantee Fund to manage defaults. • Future Outlook: - Aims to enhance operational efficiency through greater automation, expand post-trade capabilities, and support new financial market products to drive long-term investor confidence.

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## 📉 Global Oil Prices Fall Amid US-Iran De-escalation

• Market Figures: Brent crude futures dropped $1.47 (-1.66%) to US$ 86.89 per barrel; U.S. West Texas Intermediate (WTI) fell $1.45 (-1.76%) to US$ 81.16 per barrel, marking both benchmarks' lowest levels since July 20. • Geopolitical Shifts: Prices declined following signals of a potential diplomatic resolution between the U.S. and Iran, reducing immediate fears of critical energy flow disruptions. • Supply & Demand Pressures: Net crude exports through the Strait of Hormuz declined to 2.9 million barrels per day in the week ending July 24, down from 5.9 million the previous week, while Caspian Pipeline Consortium resumed Black Sea oil loadings.

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📈 Bond Yields Broadly Steady Ahead of Major Auctions & Inflation Data

Sri Lanka’s secondary bond market began the week on a subdued note as investors adopted a wait-and-see approach ahead of key debt auctions and the upcoming July CCPI inflation release. • Market Activity & Yields: Trading volumes were mostly supported by block trades as higher yields drew renewed buying interest. Selected maturity yields: • 2026: 15.12.26 traded at 10.00% • 2029: 15.09.29 traded at 11.23% • 2030: 01.07.30 (11.60%), 01.08.30 (11.62%–11.66%), 15.10.30 (11.64%–11.68%) • 2033: 15.01.33 traded at 12.25% • Upcoming Auctions: • Treasury Bills: Rs. 140 Bn offered today across 91-day (Rs. 60 Bn), 182-day (Rs. 50 Bn), and 364-day (Rs. 30 Bn) tenors—below estimated upcoming maturities of Rs. 164.11 Bn. • Treasury Bonds: Rs. 250 Bn scheduled for Thursday across 2031, 2034, 2036, and 2037 maturities. • Previous T-Bill Recap: Last week raised Rs. 154 Bn in total. Weighted average yields dropped on 91-day (-18 bps to 9.95%, dipping below 10% for the first time in 7 weeks) and 182-day (-3 bps to 10.24%), while 364-day yields held flat at 10.20%. • Liquidity & Forex: • Net Liquidity Surplus: Stood at Rs. 153.80 Bn. Call money and Repo rates averaged 9.00% and 9.03%. • USD/LKR: Spot ended steady at Rs. 336.20/336.30, with daily traded volume at $ 48.05 Mn.

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CSE Opens Week Higher as Lower Oil Prices Boost Market Sentiment 📈

• Market Indices & Movement • ASPI edged up +0.07% (+14.38 pts) to close at 21,187.22, despite paring back an early peak of 21,310.55. • S&P SL20 gained +0.10% (+6.18 pts) to settle at 5,948.74. • Breadth was positive: 113 gainers vs. 90 decliners. • Turnover & Foreign Flows • Total Turnover stood at over Rs. 2 Bn with 65.1 Mn+ shares traded. • Net Foreign Inflow reached Rs. 15.7 Mn. High-net-worth investors led turnover with robust retail engagement. • Sector Breakdown • Capital goods: Led market activity with a 42% turnover share; sector index rose +0.77% driven by John Keells Holdings (+Rs. 0.20 to Rs. 19.80) and Hayleys (flat at Rs. 225.00). • Banking: Second-largest contributor at 39% (combined with food, beverage & tobacco); sector index dipped -0.03%. Sampath Bank dropped Rs. 0.25 to Rs. 136.75, Hatton National Bank gained Re. 1.00 to Rs. 386.00, and Nations Trust Bank fell Rs. 0.25 to Rs. 305.00. • Key Drivers • Sentiment was bolstered by falling global oil prices, lower input cost expectations, and easing US-Iran tensions.

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📈 CSE Turnover Crosses Rs. 2.07 Bn as Market Indices Post Slight Gains

The Colombo Stock Exchange (CSE) closed slightly higher today (27 July), backed by strong daily turnover following a drop in global oil prices linked to easing Middle East tensions. Key highlights from the trading session: • Market Indices: The All Share Price Index (ASPI) gained 14.48 points (+0.07%) to close at 21,187.22, after rising over 100 points in early trade. The S&P SL20 Index edged up 6.18 points to end at 5,948.74. • Turnover & Key Movers: Total market turnover reached Rs. 2.07 Bn. The rally was heavily driven by the conglomerate and banking sectors: • John Keells Holdings: Rs. 661 Mn (including crossings) • Sampath Bank: Rs. 139 Mn • HNB: Rs. 134 Mn • Hayleys: Rs. 132 Mn • Nations Trust Bank: Rs. 131 Mn • Economic Context: Market sentiment was supported by falling global fuel costs, reinforcing the strong inverse correlation between oil prices and local equity performance.

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Secondary Bond Market Yields Edge Up; T-Bill Yields Drop Further 📈

• Government Securities & Primary Auction Selling pressure pushed secondary bond yields higher across longer tenors amid geopolitical tensions and monetary policy updates. However, T-bill yields declined for the second straight week: - 91-day yield fell 18 bps to 9.95% (below 10% for the first time in 7 weeks). - 182-day yield dropped 3 bps to 10.24%. - 364-day yield remained unchanged at 10.20%. - Total auction acceptance reached Rs. 154 Bn against the initial Rs. 140 Bn offer. • Secondary Market Yield Ranges - Short-Term: 2026 maturities traded at 9.80%–10.16%; 2027 tenors moved between 10.30%–10.40%. - Medium-Term: 2028 tenors ranged from 10.70%–10.80%; 2029 tenors traded between 11.10%–11.25%. - Long-Term: 2030 maturities ranged from 11.53%–11.65%; 2031–2034 tenors traded between 11.95%–12.25%. • Foreign Portfolio Inflows Rupee treasuries registered a net weekly inflow of Rs. 5.83 Bn (7th consecutive week of net inflows). Total foreign holdings surged to a three-year high of Rs. 182.39 Bn. • Liquidity & Foreign Exchange - Net market liquidity surplus stood at Rs. 163.07 Bn. - Call Money and Repo rates averaged 9.00% and 9.02% respectively. - USD/LKR spot exchange rate closed steady at Rs. 336.25/336.35, with daily average traded volumes reaching US$ 114.73 Mn.

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CSE Closes Week Down 1.08% Amid Brief Mid-Week Recovery 📉

• Overall Figures: • Benchmark ASPI declined 1.09% (-232.67 pts) weekly to close at 21,172.74. • Active S&P SL20 fell 0.95% (-57.12 pts) over the week to end at 5,942.56. • Market turnover exceeded Rs. 2.45 Bn with over 93.5 Mn shares traded. • Foreign investors remained net buyers with a net inflow of Rs. 1.07 Bn. • Sector Breakdown: • Retailing sector led daily turnover, contributing 42%. • Banking and capital goods sectors collectively accounted for 33% of turnover. • Market Activity: • 139 counters closed in red against 76 in green. • ASPI decline was primarily led by JKH, HNB, CINS, GRAN, and BREW. • Activity was bolstered by high-net-worth investor participation and a large negotiated crossing in United Motors Lanka (UML).

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📈 Global Oil Prices Surge Amid Supply Chokepoints

• Market Figures: Brent futures eased 0.72% to US$ 99.97 a barrel (heading for a 13.5% weekly gain), while West Texas Intermediate dropped 0.76% to US$ 91.49 a barrel (on track for a 10.9% weekly rise). • Supply Disruptions: Red Sea shipping attacks by Houthi forces on oil tankers threaten the closure of the critical Bab el-Mandeb chokepoint, following a declared naval blockade on Saudi Arabia. • Production Impacts: Kazakhstan temporarily scaled back output after suspected Ukrainian drone attacks forced the closure of its main Black Sea export terminal at the Caspian Pipeline Consortium. • Geopolitical Tensions: U.S. President Donald Trump vowed to hold Iran responsible, exacerbating fears of constrained global energy supplies and heightened transport costs.

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Economic News

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📈 Sri Lanka Business Confidence Rebounds to 151 in July Amid Macro Recovery

• Business Sentiment (BCI): The LMD-PepperCube Business Confidence Index surged 19 points to 151 in July 2026, reversing a 20-month low of 132 in June. The barometer sits 25 points above its historic median (126), though it trails its 12-month average (170) and the July 2025 figure (190). • Macro Economic Performance: The World Bank reclassified Sri Lanka as an upper-middle income economy following a 5.0% expansion last year. Q1 2026 GDP grew 5.1% YoY, driven by growth in industry (+7.2%), services (+3.4%), and agriculture (+1.1%). • Market Developments: LP gas distributors Litro and Laugfs cut retail prices in early July in line with falling global energy costs, though anticipated fuel subsidies are yet to take effect. • Key Risks & Outlook: Business optimism remains cautious due to external threats. The IMF raised its 2026 global inflation forecast to 4.7%, citing potential supply chain disruptions and market instability from Middle East conflicts.

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📈 Sri Lanka Tax Revenue Hits Rs. 5.05 Trillion, But Indirect Tax Imbalance Widens

Sri Lanka’s tax-to-GDP ratio rose to 15.4% in 2025 as total tax revenue reached Rs. 5.05 trillion (up from Rs. 1.75 trillion in 2022). However, reliance on consumption taxes leaves the direct-to-indirect tax mix heavily skewed at 22.6% vs 77.4%. • Tax Breakdown & Revenue Figures: • Total Tax Revenue: Rs. 5.05 Trillion (2025) • Income Tax (Direct): Rs. 1.14 Trillion (22.6% of total, up 11.0% YoY) • Indirect Taxes (Goods, Services & External Trade): Rs. 3.91 Trillion (77.4% of total) • Tax Ratio: Rs. 3.4 collected in indirect tax for every Rs. 1 of direct tax • Drivers of Revenue Growth: • VAT collections surged 33.4% YoY to Rs. 1,746.9 billion, driven by a 49.2% jump in import VAT. • Excise duty on motor vehicles skyrocketed to Rs. 471.8 billion (up from Rs. 58.6 billion in 2024) following the lifting of import suspensions in Feb 2025. • Registered taxpayer files grew 19.2% YoY to 1.3 million. • Global & Regional Benchmarks: • Indirect taxes account for 70.8% of Sri Lanka's revenue compared to the Asia-Pacific average of 50.0% and the OECD average of 31.2%. • Direct taxes (corporate income tax & personal income tax) make up only 23–27% of tax revenue, well below the Asia-Pacific average (38.8%) and OECD average (35.6%).

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📈 Govt Approves Rs. 2.8 Bn Regional Industrial Projects to Boost Employment

The Cabinet of Ministers has cleared land allocations for 23 new manufacturing and industrial ventures across 13 regional industrial estates on 35-year lease agreements. • Overall Investment & Jobs: Total investment exceeds Rs. 2.8 billion, expected to generate 870 direct jobs. • Regional Development: Implemented by the Ministry of Industry and Entrepreneurship Development to drive balanced industrialisation, decentralise production, and expand economic opportunities outside major urban hubs. • Selection Process: Proposals underwent a multi-stage evaluation by the Regional Industrial Service Committee (under Industrial Promotion Act No. 46 of 1990) and the Ministry's Project Evaluation Committee. The initiative reinforces Sri Lanka's focus on regional manufacturing, industrial diversification, and local employment growth.

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📈 Sri Lanka Faces $5.5 Bn Reserve Gap Ahead of 2027 Debt Servicing

• Debt Obligations: Annual external debt servicing will jump to US$ 4.5–5.0 Bn starting 2027–2028 under IMF guidelines, following the end of post-2022 grace periods. • Reserve Position: - Gross Official Reserves stand at US$ 6.5–6.8 Bn, but net usable reserves hover around US$ 5.0–5.3 Bn (excluding the restricted US$ 1.4 Bn PBOC swap). - A total reserve buffer of US$ 10.0–12.0 Bn is required for 3–4 months import cover, leaving an active gap of US$ 4.5–5.5 Bn. • Currency & Intervention: CBSL faces tension between buying forex to build reserves and preventing Sri Lankan Rupee volatility. Policy experts urge a rule-based crawling band mechanism rather than hard pegs or free-floats. • Trade & Forex Leakages: Recommends plugging trade mis-invoicing loopholes via integrated CBSL-Customs data tracking (UIN/TIN) and strengthening enforcement under the Foreign Exchange Act. • Tariff Reform: Suggests rationalizing border levies (CESS, PAL) into a simplified two-tier customs structure while shifting revenue collection to domestic VAT to curb smuggling and lower consumer costs.

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⚠️ CoPF Raises Concerns Over PDMO Capacity to Manage Rs. 31.1 Tn Debt

• Debt Portfolio & Oversight Parliament’s Committee on Public Finance (CoPF) expressed serious concerns over whether the Public Debt Management Office (PDMO) possesses the technical capabilities, governance framework, and specialist expertise required to manage Sri Lanka’s Rs. 31.1 Tn government debt portfolio following the transfer of duties from the Central Bank. • Institutional Readiness & Staffing Fully operational since December 2025, CoPF warned that even a 10-basis-point error in borrowing decisions could have severe financial implications. • Approved Cadre: 80 staff positions (around 60 currently filled). • Executive Roles: Most filled; 1 Assistant Director-General position remains vacant pending disciplinary proceedings. • Training Budget: CoPF criticized the Finance Ministry’s Rs. 2 Mn training allocation as inadequate for managing billions in borrowings. The PDMO was ordered to submit a formal Training Needs Assessment within two weeks to justify higher budget allocations. • Strategy & Market Challenges The PDMO's medium-term strategy focuses on reducing reliance on Treasury Bills, increasing longer-term Treasury Bonds, and lowering external debt. However, CoPF questioned whether these goals are achievable given elevated domestic interest rates, urging the office to build in-house market expertise rather than relying on monetary policy to lower borrowing costs.

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📊 S&P Affirms Sri Lanka’s 'CCC+/C' Rating with Stable Outlook

S&P Global Ratings has affirmed Sri Lanka’s sovereign credit ratings at 'CCC+/C' with a stable outlook, reflecting continued economic growth and fiscal reform despite elevated external risks. • Overall Credit Profile & Metrics Long- & Short-Term Foreign/Local Currency: Affirmed at 'CCC+/C'. Transfer & Convertibility Assessment: Revised upward to 'B-' from 'CCC+'. Real GDP Growth: Projected at 3.8% in 2026 (down from 5.1% in Q1) and 4.2% in 2027. Fiscal Deficit: Forecast at 5% of GDP in 2026, narrowing toward 4% by 2029. Net Government Debt: Projected at ~92% of GDP in 2026, declining to ~83% by 2029. • External & Sector Performance Gross Official Reserves: Stood at US$ 6.45 Bn in June (down from US$ 6.88 Bn in May). Current Account: Expected to return to a deficit of 1.7% of GDP in 2026 as imports rise. Revenue & Trade: Revenue boosted by lifting vehicle import restrictions and tax reforms; however, tourism arrivals dropped ~10% in June alongside slowing remittances. • Key Risks & Outlook External Vulnerabilities: Heightened risks from Middle East conflict, higher energy/fuel costs, and dependence on imported fuel and fertiliser. Rating Catalysts: Sustained fiscal/external improvement could trigger an upgrade, while renewed liquidity or funding stress could lead to a downgrade. Continued adherence to the IMF EFF program remains central to stability.

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Registrations Open for Sri Lanka Economic & Investment Summit 2026 📈

The Ceylon Chamber of Commerce has opened registrations for the 26th edition of the Sri Lanka Economic & Investment Summit (SLEIS 2026). • Event Details: Scheduled for October 12–13, 2026, at Shangri-La Colombo. • Core Theme: _"Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy."_ • Key Stakeholders: Senior government officials, policymakers, international investors, development partners, and business leaders. • Strategic Focus: Moving beyond economic stabilization toward private sector-led growth, attracting foreign investment, enhancing competitiveness, and boosting global market integration. • Key Highlights: Feature addresses, high-level panel sessions, investor engagement, and sector discussions aimed at accelerating export diversification, trade, and national growth. • Registration: Open early due to limited capacity via [https://sleis.chamber.lk/](https://sleis.chamber.lk/). Contact Alikie (011 558 8805) or Shaunuka (070 108 2541).

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🌊 Government Targets Coastal Protection & Environmental Delivery in 2027 Budget Planning

President Anura Kumara Dissanayake instructed officials to enforce strict legal action against unauthorized construction along Northern and Eastern coastlines as part of the Environment Ministry's 2027 pre-Budget review. Key updates and strategic directives include: • Coastal & Marine Management: A new steering committee will monitor coastal development, while an expert panel will address severe erosion at Oluvil. The "Clean Sri Lanka" program will expand via the Clean Coastline Project and coastal recreation parks. • Budget Execution: The ministry reviewed progress on its Rs. 19,719 million allocation for 2026 across key agencies, including the Central Environmental Authority, Department of Wildlife Conservation, and Marine Environment Protection Authority. Officials were ordered to fully utilize remaining funds by year-end. • Human-Elephant Conflict: Delays in mitigating human-elephant conflict were flagged as direct threats to lives. The President directed that elephant fence placement prioritize human safety over rigid wildlife zone demarcation. • Sustainability & Investment: Environment Minister Dr. Dammika Patabendi highlighted a national carbon emissions policy in development to unlock green investment opportunities. • Foreign Project Coordination: A permanent committee will oversee externally funded projects to eliminate ministry overlaps and enhance planning efficiency.

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Budget 2027: Transitioning Sri Lanka from Stabilisation to Growth 📈

• Overview & Targets: Sri Lanka’s proposed 2027 Budget seeks to move from post-crisis macroeconomic stabilisation to a structural transformation. To service external debt post-2027 and boost living standards, the economy must target a real growth rate above 7% annually. • Three Core Missions: • Raising National Productivity: Drive efficiency via "Digital Structuralism" (digitising customs, land registries, taxation), workforce upskilling, and logistics infrastructure. • Mobilising Investment: Expand gross domestic capital formation to over 30% of GDP by streamlining FDI approvals, deepening capital markets, and expanding SME credit guarantee facilities. • Improving Living Standards: Target high-value job creation, elevate female labor participation (currently under 35%), support youth entrepreneurship, and strengthen social safety networks like _Aswesuma_. • Key Sector Focus: • Apparel & Textiles & Tea: Transition into high-tech manufacturing, robotics, and AI to enhance value-addition against low-cost competitors. • Agribusiness: Shift input subsidies into technology co-investments (drip irrigation, cold chain). • Renewable Energy: Scale utility-scale solar, wind, and biomass to cut power costs and fossil fuel reliance. • Trade & Logistics: Upgrade deep-water ports to solidify South Asia maritime hub status. • Performance Framework: Measures success through a National Transformation Scorecard tracking labor productivity, export growth, real household income, and job creation alongside traditional primary surplus and deficit metrics.

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### Sri Lanka Facing Ultra-Low Fertility & Economic Risk 📈

• Falling Birth Rates & TFR: • Annual live births dropped from 336,097 (2015) to 319,010 (2019) and fell sharply to 275,321 in 2022. • Births remain well below the 330,000 annual requirement needed for population stability. • Total Fertility Rate (TFR) stands at 1.3—placing Sri Lanka in "ultra-low fertility" territory, significantly below India (1.9) and the Maldives (1.7). • Demographic Disparity: • Sinhala women record the lowest fertility rate at 1.2, while Muslim women record the highest at 2.0 (also on a downward trend). • Primary Drivers: • Soaring living and housing costs delaying family formation. • Career prioritization and desire for independence among young metropolitan women. • Significant outward migration of young Sri Lankans of reproductive age seeking employment abroad. • Economic & Sector Impact: • An aging population increases fiscal spending on pensions and healthcare, constraining infrastructure investment. • Shrinking youth entering the workforce deepens labour shortages across vital sectors like agriculture and services, curbing economic growth and export ambitions. • Proposed Interventions: • Controlled opening of borders to foreign workers to mitigate critical labour shortages. • Offering financial incentives to support child-rearing and encourage birth rates.

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📈 President Reviews Fisheries Progress & 2027 Budget Priorities

• Strategic Focus: President Anura Kumara Dissanayake reviewed 2026 Budget performance for the Ministry of Fisheries, Aquatic and Ocean Resources to set priorities for the 2027 Budget. Key goals focus on driving growth in fisheries production, expanding seafood exports, ensuring national nutritional security, and uplifting coastal community livelihoods. • Key Infrastructure: Evaluated progress across major coastal development projects, including the Myliddy Fishery Harbour Development, Gandara Fishery Harbour work, Rekawa Fishery Anchorage construction, and Karainagar Boat Yard modernization. • Disaster Rehabilitation: Reviewed post-Cyclone Ditwah recovery efforts, highlighting an ongoing Rs. 189 Mn assistance program providing boats, nets, and gear to affected fishing families, alongside harbour reconstruction. • R&D & Sustainability: Assessed 2027 funding needs for research and development while tracking progress under the 'Clean Sri Lanka' initiative to recycle decommissioned boats and fiberglass waste. • Institutional Review: Evaluated operational performance across key sector bodies, including DFAR, NAQDA (aquaculture), NARA, CFHC, CFC, Cey-Nor Foundation, and the Central Fish Market Complex.

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📈 CBSL Signals Moderation in Private Sector Credit Growth

• Overall Expansion: Private sector credit expanded by 27.8% YoY during the first five months of 2026, representing an increase of Rs. 824 Bn. Total outstanding credit to the private sector reached a record Rs. 11.04 Tn in May, up 2.2% MoM from Rs. 10.8 Tn in April. • Sector Breakdown (Based on May outstanding credit): - Industry: ~37% of total credit - Services: 30.5% - Personal Loans & Advances: 24% - Agriculture & Fisheries: ~9% • Drivers & Policy Impact: CBSL Governor Dr. Nandalal Weerasinghe noted that growth was broad-based, driven by construction, wholesale and retail trade, financial services, and consumer-related lending, reflecting broader economic recovery. The CBSL expects lending pace to ease as May's 100-basis-point policy rate hike and related policy measures gradually feed into the real economy. [Dr. Nandalal Weerasinghe on Sri Lanka's Economic Reset](https://www.youtube.com/watch?v=ria4ZeW6ajw) This discussion provides context on Central Bank Governor Dr. Nandalal Weerasinghe's strategy for maintaining monetary discipline and managing demand pressures in Sri Lanka.

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Global & International Business

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🤝 COYLE and Indian Chamber of Commerce Sign MoU to Boost Bilateral Trade

• Strategic Partnership: The Chamber of Lankan Entrepreneurs (COYLE) and the Indian Chamber of Commerce (ICC-Tamil Nadu) signed an MoU in Colombo during the India–Sri Lanka Bilateral Trade Delegation. • Core Focus: Aimed at expanding trade promotion, investment facilitation, business networking, and knowledge exchange between both nations. • Key Synergy: Combines India’s manufacturing strength and scale with Sri Lanka’s strategic location, logistics advantage, and innovation. • Economic Context: Leverages the India–Sri Lanka Free Trade Agreement (ISFTA) to strengthen cross-border partnerships, regional economic integration, and private-sector growth.

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🤝 COYLE and Indian Chamber of Commerce Sign MoU to Boost Bilateral Trade

• Strategic Partnership: The Chamber of Lankan Entrepreneurs (COYLE) and the Indian Chamber of Commerce (ICC-Tamil Nadu) signed an MoU in Colombo during the India–Sri Lanka Bilateral Trade Delegation. • Core Focus: Aimed at expanding trade promotion, investment facilitation, business networking, and knowledge exchange between both nations. • Key Synergy: Combines India’s manufacturing strength and scale with Sri Lanka’s strategic location, logistics advantage, and innovation. • Economic Context: Leverages the India–Sri Lanka Free Trade Agreement (ISFTA) to strengthen cross-border partnerships, regional economic integration, and private-sector growth.

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📈 China–Sri Lanka Diplomatic & Economic Ties: Ambassador Qi Zhenhong Concludes Tenure

Outgoing Chinese Ambassador Qi Zhenhong has completed his nearly six-year diplomatic mission in Sri Lanka, emphasizing sustained development cooperation, debt restructuring, and trade expansion. • Key Economic & Bilateral Highlights • Debt Restructuring: China was the first bilateral creditor to reach an agreement framework with Sri Lanka to support financial stability following the 2022 economic crisis. • Infrastructure & Logistics: Major investments focused on Colombo Port City (developed without direct financial burden on Sri Lanka) and Hambantota Port to boost productive capacity, connectivity, and maritime logistics. • Trade Agreements: China renewed calls to finalize the stalled Free Trade Agreement (FTA) (pending since 2017) to expand access for Sri Lankan exports to the Chinese market. • Future Cooperation & Sectors • Partnership framework expands into agriculture, ICT/technology, healthcare, education, and tourism. • Focus remains on leveraging strategic infrastructure for local employment, export growth, and integration into global supply chains.

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📈 Canada Day Dialogue: Sri Lanka Targets $2.4 Bn Trade & Tourism Push

The Canadian Chamber of Commerce in Sri Lanka held the "Canada Day Dialogue" to explore new pathways under Canada's CAD 500 Bn Indo-Pacific Strategy. • Trade & Investment Targets: - Sri Lanka aims to capture 2% of Canada's global trade, targeting ~US$ 2.4 Bn in two-way trade. - Canadian FDI currently stands at ~US$ 20 Mn, with realistic potential to scale up to ~US$ 400 Mn. - Priority sectors identified for foreign capital and tech transfer include manufacturing, ICT & cybersecurity, and renewable energy (wind and solar potential). • Tourism Expansion: - Aiming to scale Canadian tourist arrivals from ~40,000 to 100,000–120,000 annually within 12 to 18 months. - Shift toward high-yield experience & luxury tourism (targeting US$ 1,000/day travelers) and authentic community-based offerings. • Global Value Chains & Diaspora: - Focus on direct-to-consumer models in North America for local artisan handicrafts & lifestyle products. - Strategic push to leverage the global diaspora for capital and technology, backed by administrative ease via the e-BOI framework.

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🇦🇺🇱🇰 Australia’s Special Envoy for Indian Ocean Affairs Visits Sri Lanka

Australia’s Special Envoy for Indian Ocean Affairs, Tim Watts MP, has arrived in Sri Lanka to enhance bilateral engagement and support economic, diplomatic, and regional stability across the Indian Ocean. • Diplomatic & Economic Focus: Engagement planned with government representatives, political and business leaders, development partners, and the local arts community to boost bilateral collaboration. • Strategic Objectives: Discussions centered on strengthening regional resilience, economic connectivity, preparedness against shared challenges, and institutional links. • Regional Context: Follows Watts’ previous visit in October 2023 for the 23rd Indian Ocean Rim Association (IORA) Council of Ministers meeting, underscoring Australia's ongoing commitment to Sri Lanka as a key Indian Ocean neighbor.

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📈 Milan Forum Promotes Sri Lanka Expo 2027

• Event Overview: The "Discover Sri Lanka: Gateway to Trade and Investment" business forum was successfully held in Milan on 9 July, organized by the Sri Lankan Consulate General, Italian Foreign Trade Association, and Club Asia. • Core Objective: Promote Sri Lanka Expo 2027, scheduled in Colombo from 14–17 January 2027, showcasing national export capabilities and investment incentives to the Italian business community. • Key Endorsement: Calzedonia Group (Oniverse) shared its successful 25-year manufacturing presence in Sri Lanka, praising the country's skilled workforce, strategic apparel and value-added manufacturing capabilities, and favorable institutional support for long-term foreign investment. • Policy Commitments: Government representatives highlighted recent policy reforms focused on transparency, investor confidence, and ease of doing business to attract international partners.

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📈 Sri Lanka Must Overcome Bureaucracy to Attract Global FDI

• Core FDI Challenge: Despite a strategic location in the Indian Ocean, Sri Lanka struggles with modest Foreign Direct Investment (FDI) inflows, losing potential investors to regional competitors like South India, Vietnam, and Indonesia due to complex governance and approval delays. • Institutional & Policy Bottlenecks: Investors face multi-agency bureaucratic hurdles, lengthy approval timelines, and policy inconsistency across political transitions, prioritizing speed, policy predictability, and efficiency over tax incentives. • Strategic Transformation for Hambantota: Currently a transshipment hub for Indian vehicle exports to Africa, Hambantota could expand into an automotive manufacturing and assembly hub using CKD/SKD kits, creating thousands of jobs and driving value-added exports. • Key Industrial & Sector Opportunities: Beyond manufacturing, Sri Lanka holds potential to become a regional hub for logistics, maritime services, renewable energy, technology, and integration into global value chains. • Proposed Governance & Institutional Reforms: - Transform the Board of Investment (BOI) into a proactive investment promoter with dedicated relationship managers and digital tracking. - Implement legally mandated, accountable timelines for project approvals. - Establish a bipartisan National Investment Strategy and integrate economic diplomacy into foreign policy.

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🤝 Sri Lanka High Commission in India Hosts Discussion on ‘Colombo: Port of Call’

• Event Overview: The High Commission of Sri Lanka in New Delhi hosted an engaging literary event on 15 July 2026 centered around the book _Colombo: Port of Call_ by author and journalist Ajay Kamalakaran, in collaboration with Chapters by Shibani. • Diplomatic & Cultural Significance: Hosted by High Commissioner Mahishini Colonne, the gathering brought together diplomats, academics, journalists, and business leaders to showcase Colombo’s historical evolution as an Indian Ocean hub of commerce, culture, and civilization. • Strengthening Bilateral Relations: The discussion highlighted Colombo’s heritage through historic travel accounts—including those of Mahatma Gandhi and Anton Chekhov—aimed at deepening cultural understanding, heritage appreciation, and people-to-people ties between Sri Lanka and India.

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🤝 Sri Lanka & India Move to Resolve Challenges in Indian-Funded Projects

Sri Lanka and India held high-level bilateral discussions at the Presidential Secretariat to review progress, clear implementation bottlenecks, and ensure the smooth execution of Indian-assisted development projects. • Key Objectives & Monitoring: • Focused on resolving implementation challenges and renewing agreements for project continuity. • Reviewed initiatives supported under India's US$ 450 Mn loan and grant facility allocated for disaster recovery and reconstruction. • Proposed establishing a dedicated unit within the Presidential Secretariat to actively monitor and oversee project progress. • Key Sectors Involved: • Transport, Highways & Urban Development • Ports & Civil Aviation • Plantations & Community Infrastructure • Housing Construction & Water Supply • Fisheries, Aquatic & Ocean Resources • Science & Technology • Justice & National Integration • Key Representation: • Co-chaired by Dr. Anil Jayantha Fernando (Minister of Labour & Deputy Minister of Finance and Planning) and Mr. Santosh Jha (High Commissioner of India to Sri Lanka), alongside senior treasury, ministry, and diplomatic officials.

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Sri Lanka Ranks 4th Globally for IIF Investor Relations Improvement 📈

• Overall Assessment: Sri Lanka has emerged as one of the fastest-improving emerging market sovereigns for investor relations and debt transparency, recording the fourth-biggest global improvement in the Institute of International Finance (IIF) assessment. • Key Highlights: Reflects substantial progress in national debt transparency, communication standards, and sovereign investor engagement following ongoing debt restructuring initiatives. Strengthens market confidence across key national economic pillars, supporting broader macroeconomic stabilization efforts. _(Note: Brief generated based on provisional news updates.)_

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📈 Forum Focus: Reconnecting Sri Lanka to Global Markets

• National Strategy: Industry leaders and experts at the "Taking Sri Lanka to the World" forum highlighted that Sri Lanka's economic transformation depends on strong institutions, policy consistency, and a unified foreign policy rather than relying solely on its geographic location. • Foreign Policy & Trade: Prof. Patrick Mendis proposed the "Mahaweli Doctrine" to link foreign policy with commerce, agriculture, ICT/BPM, and tourism, advocating for a "multi-alignment" strategy with major powers including the US, China, India, and ASEAN. • Investment & FDI: Panelists emphasized creating an authentic national brand to attract foreign direct investment. Focus must shift from tax incentives to improving execution, logistics, labor reforms, and celebrating reinvestment from existing global investors. • Key Services Sector: Port City Economic Commission Chairman Harsha Amarasekera positioned Colombo Port City as a special economic zone designed to integrate Sri Lanka into global services, finance, and knowledge-intensive industries via a multi-currency framework. • Strategic Communications: PRASL President Nimal Gunawardena noted that strategic public relations must align public understanding with major national initiatives like digital transformation and energy transitions.

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India’s Assistance to Sri Lanka Exceeds US$ 7.5 Bn 📈

• Overall Assistance: Total aid from India has crossed US$ 7.5 Bn, which includes over US$ 850 Mn provided as grant assistance. New Delhi remains Sri Lanka’s largest partner in trade, investment, and development. • Sectors Covered: Funding spans all 25 districts, supporting crucial development in infrastructure, housing, health, education, agriculture, renewable energy, railways, and industrial development. • Crisis Relief & Support: Highlighted under India's "Neighbourhood First" policy, assistance includes recent relief during Cyclone Ditwah, the economic crisis, and the COVID-19 pandemic.

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Sustainability, ESG & Corporate Responsibility

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📈 UK Launches £ 2.34 Mn 'Resilient Waves' Initiative for Sri Lanka's Coastal Economies

• Program Overview: The UK Department for Environment, Food and Rural Affairs (DEFRA) has launched a £ 2.34 Mn grant initiative, Resilient Waves, running through March 2029 under the Blue Planet Fund. Selected from over 370 global applications, the project aims to build climate resilience and safeguard marine biodiversity. • Target Regions & Drivers: Active in the coastal districts of Batticaloa and Mullaitivu, the initiative addresses three core challenges: multidimensional poverty, climate vulnerability, and economic exclusion among vulnerable fishing communities. • Key Sector Interventions: • Habitat Restoration: Rehabilitating degraded coral reefs and mangrove ecosystems through scientific assessments. • Livelihood Diversification: Expanding aquaculture as a primary alternative to marine fishing, focusing on sea bass, tilapia, sea cucumber farming, and cage culture. • Inclusive Governance: Empowering Fisheries Cooperative Societies, expanding women's economic participation, and linking local enterprises directly to financial institutions and private sector value chains. • National Context: Implemented by Acted alongside a local consortium, the program aligns with Sri Lanka's Nationally Determined Contributions (NDCs) and National Adaptation Plan to support climate-smart adaptation in coastal fisheries.

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📉 ADB Urges Urgent Water Security Investments Across Asia-Pacific

• Regional Challenge: Around 220M people in Asia-Pacific lack basic water supply, while 520M lack basic sanitation. Over 40% of global flood events occur in the region, with 4 Bn people facing risks from unreliable water and water-related disasters. • National Context (Sri Lanka): ADB highlighted ongoing support for operational reforms in Sri Lanka to reduce costly water distribution losses and improve efficiency, aligning with broader regional economic stability goals. • ADB Financing: The ADB committed US$ 12.7 Bn to the water sector from 2021 to 2025, benefiting 63M people across projects in Fiji, the Philippines, and Sri Lanka. • Japan Partnership: A new ADB-administered fund with Japan aims to bolster disaster preparedness, hydropower energy links, and infrastructure. Key focus areas include integrated river basin management and decentralized wastewater treatment. • Progress: Despite challenges, 2.7 Bn people in Asia-Pacific have moved out of extreme water insecurity since 2013, based on ADB's Asian Water Development Outlook (Dec 2025).

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## 📈 Reviving Sri Lanka's Sugar Industry: Gal-Oya Plantations

• Overview: Gal-Oya Plantations continues to drive economic and social development in the Eastern Province through the revival of the sugar and agriculture sectors, operating as a public-private partnership with a 51% government stake and 49% held by Browns and LOLC. • Operational Recovery: Following its restart in 2006 under the Eastern Reawakening Development Programme, the company rehabilitated critical infrastructure, including damaged access roads and deteriorating irrigation canals linked to the Senanayake Samudraya. • Farmer Support & Cultivation: The company provides comprehensive assistance—including seed cane, fertilizer, technical guidance, machinery, and round-the-clock protection teams against wildlife crop damage (such as elephants and wild boar)—to secure stable household incomes. • Community Development: Beyond commercial operations, Gal-Oya Plantations actively invests in local educational infrastructure, student scholarship programmes, and religious and cultural institutions across all faiths in the region.

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📈 Sri Lanka’s Falling Female Labour Participation Highlighted in Care Economy Call

• Labour Participation Deficit: Female labour force participation in Sri Lanka dropped from over 45% in 1990 to ~30% today, reversing decades of economic progress. • Unpaid Care Burden: Department of Census and Statistics data shows 56% of non-participating women cite domestic/care responsibilities (vs. 5% of men). Women carry 86% of all unpaid care work in Sri Lanka, spending 4 extra hours daily on domestic tasks and 1 extra hour on direct care compared to men. • Corporate Sector Impact: Support infrastructure directly improves performance. Workplace interventions by major employers in apparel & textiles, such as MAS Holdings, showed that introducing crèche facilities reduced factory floor absenteeism by ~9%. • Systemic & Cultural Barriers: Infrastructure like daycares and backup care eases immediate pressure, but societal expectations and stigma around institutional care continue to limit women's career trajectories, promotions, and economic independence. • Policy & Action Needed: Aligning with ILO’s 2024 Decent Work and Care Economy framework, experts advocate for a structured care economy—combining public infrastructure, corporate care policies, and flexible arrangements for both men and women.

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🌿 Hayleys Plantations Partners with UNDP BIOFIN to Pioneer Ecosystem Financing

Hayleys Plantations has partnered with UNDP BIOFIN to advance Payment for Ecosystem Services (PES) mechanisms across its plantation sector landscapes, rewarding long-term investments in water resources, biodiversity, carbon storage, and soil conservation. • Estate-Level Initiatives: • Horana Plantations PLC (Bambarakelly Estate): Focuses on watershed conservation, protecting critical catchments, enhancing biodiversity, and integrating renewable energy. • Talawakelle Tea Estates PLC: - Great Western Estate: Prioritizes watershed conservation to ensure long-term water security. - Wattagoda Estate: Partners with the Pekoe Trail Organisation on Sri Lanka’s first tourism-led PES initiative, linking sustainable tourism with biodiversity restoration. • Kelani Valley Plantations PLC (Halgolla Estate): Developing a replicable PES model centered on regenerative agriculture and landscape restoration. • Strategic Context: • The collaboration establishes scalable, nature-based financing frameworks within commercial landscapes, integrating sustainability into Sri Lanka’s tea and agricultural production to strengthen both ecological resilience and long-term economic value.

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Citi Sri Lanka Transforms Mawela Kanishta Vidyalaya in Wadduwa 📈

• Initiative Overview: Citi Sri Lanka partnered with ChildFund Sri Lanka for its flagship annual volunteer program, Citi Global Community Day 2026, targeting infrastructure and environment upgrades at Mawela Kanishta Vidyalaya in Wadduwa. • Key Upgrades & Impact: • Donated a clean water system for students. • Restored classrooms with fresh paint and wall murals. • Repaired sanitary facilities and executed greening initiatives. • Organized a friendly cricket match between volunteers and students to foster community connections. • Corporate Social Responsibility: The initiative supports human capital development by building safe learning environments, aligning with long-term banking & financial services sector CSR commitments to strengthen local communities.

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🌸 Siddhalepa Rebuilds Kirivehera Flower Stall Complex in Kataragama

• Project Overview: Siddhalepa Group reconstructed and handed over the flower stall complex along the historic access road to Kataragama Kirivehera Rajamaha Viharaya. • Heritage & Vision: The initiative honors the legacy of late Founder Dr. Victor Hettigoda, who established the original complex in the 1980s. • Socio-Economic Impact: The project supports women's economic empowerment and self-employment, providing stable incomes for local families in the ayurveda & wellness and local retail ecosystem. • Collaborators: Built with assistance from the Sri Lanka Navy and planned alongside the National Physical Planning Department.

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Super El Niño 2026-2027: Sri Lanka Faces Dual Threat of Drought & Flash Floods 📉

• Climate Indicators & Status: Pacific sea surface temperatures reached +1.7°C in mid-June 2026, confirming a strong El Niño. The CPC indicates a 97% probability of it persisting into early 2027. Current warming is stronger than early phases of the 1997 and 2015 events. • Indian Ocean Counter-Drivers: • Indian Ocean Dipole (IOD): ~60% probability of a positive IOD developing by late 2026, which may offset El Niño drying by boosting Second Inter-Monsoon (Oct–Nov) rainfall. • Madden-Julian Oscillation (MJO): Currently weak and unlikely to impact weather in the coming months. • Agricultural & Hydropower Risks: • Drier conditions threaten the Northeast Monsoon (Dec–Feb), a critical water source for paddy cultivation and reservoir levels in the Dry Zone. • Positive IOD could cause intense downpours with longer dry spells, risking flash floods/landslides without filling water capacity evenly. • Late IOD onset increases exposure to severe dry spells, impacting tea, paddy/rice cultivation, irrigation, and hydropower generation. • Outlook: Key developments from August–September 2026 will determine whether Sri Lanka faces severe dry spells or localized floods. Stakeholders are advised to prepare for both scenarios.

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Rotary International Vice President Visits Sri Lanka for Landmark South Asian Summit 📈

• Event Highlight: Rotary International VP Muruganandam M. (“MMM”) visited Sri Lanka to discuss hosting the upcoming Rotary Institute, returning to the island after a 21-year gap. • Economic & Tourism Impact: The event is expected to host over 1,000 regional delegates across South Asia (Zones 4, 5, 6, and 7: India, Nepal, Bhutan, Maldives, and Sri Lanka), providing a boost to local hospitality & MICE tourism. • Key Leadership: Chaired by Gowri Rajan, Sri Lanka's first female Rotary Governor, the forum will serve as a hub for strategic planning, leadership, and regional humanitarian projects.

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📸 Dilmah Conservation Hosts 2nd 'One Earth' Photography Exhibition in Colombo

• Event Overview: Dilmah Conservation will host the public exhibition of its 2nd Annual One Earth Photography Competition tomorrow (25 July) from 9:00 a.m. to 6:00 p.m. at Genesis: Dilmah Centre for a Sustainable Future, Colombo 10. • Exhibition Scope: Displays 60 expert-selected works chosen from entries focused on urban biodiversity, domestic landscapes, and human-nature interaction. • Core Themes: Features shortlisted submissions under three key categories: 'Life in a Changing World,' 'Biodiversity in Your Backyard,' and 'Conservation in Action.' • Corporate Sustainability Context: Highlights ongoing sustainability initiatives by Dilmah to promote environmental awareness, urban biodiversity conservation, and public reflection on practical co-existence with nature.

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🌍 Climate Justice Starts with Gender Justice: Lessons from Sri Lanka & Eswatini

A joint initiative by Commonwealth Climate Finance Advisers highlights the necessity of integrating gender-responsive strategies into national climate policies to drive measurable impact. • Sri Lanka Focus: - Integrating gender equality & social inclusion into national climate planning at national and sub-national levels. - key policy drivers include Nationally Determined Contributions (NDC 3.0), the reviewed National Adaptation Plan, and the National Policy on Gender Equality & Women’s Empowerment (2023). - Addresses specific coastal vulnerabilities through targeted social action plans. • Eswatini Focus: - Embedding gender-responsive budgeting directly into NDC 3.0 commitments. - Enhancing climate finance access for women farmers and entrepreneurs via the Gender Inclusive Finance Roadmap. - Focuses on decision-making representation, agriculture, and water-related challenges. • Commonwealth Support Mechanisms: - Supported by the Commonwealth Climate Finance Access Hub (CCFAH) and the Collaborative Network on Gender-Responsive Climate Action. - Aims to build institutional capacity, help vulnerable nations access international climate finance, and ensure climate action remains inclusive by design.

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📈 HNB Urges Sustainable Banking Core Strategy to Build Climate Resilience

• Climate Risk & Economic Impact: Sri Lanka produces <0.1% of global GHG emissions but faces severe climate shocks. Cyclone Ditwah affected >2.1M people with US$ 4.1 Bn in estimated damages, with a Super El Niño forecasted to further impact livelihoods. • Strategic Shift in Banking: Sustainability is transitioning from a peripheral exercise to a core strategic mandate in banking. Sector efforts are guided by CBSL’s Sustainable Finance Roadmap 2.0, Green Finance Taxonomy, and the SLSBI. • HNB Financial Initiatives: - Issued a Rs. 10 Bn Sustainability Bond targeting green and social priorities. - Implemented a complete exclusion policy on coal financing. - Expanded green lending aligned with national regulatory taxonomies. • Key Sector Impact: - MSMEs: Driving financial inclusion and capacity building, particularly for women-led enterprises to scale into sustainable supply chains. - Agriculture: Supporting climate-resilient farming techniques through dedicated initiatives like the Saru Sara program. • Key Priorities: Needs center on improving decision-useful climate data, financing low-carbon industry transitions, and assisting local exporters to meet rising global compliance standards.

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Awards & Recognitions

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🍹 Smoke & Bitters Makes History on Global & Regional Best Bar Lists

• Key Achievements & Rankings: - First and only Sri Lankan venue to feature on The World’s 50 Best Bars extended list, ranking at #67 in September 2025. - Awarded the prestigious Michter’s Art of Hospitality Award 2026 for Asia. - Ranked #14 on Asia’s 50 Best Bars 2025 list and named ‘Best Bar in Sri Lanka’ for four consecutive years. - Only Sri Lankan-owned bar included in top 100 global/regional annual rankings from 2022 through 2026. • Sector & National Context: - Significantly elevates Sri Lanka's global profile in tourism and hospitality by promoting local heritage. - Drives regional growth from a beachfront village in Dikwella, prioritizing local community engagement and employment. • Operational Highlights: - Founded in early 2020 by best friends Don Ranasinghe and Lahiru Perera. - Combines wood-fire cooked dishes with inventive cocktails made from locally sourced herbs, spices, wild bee honey, and Rockland arrack. - Expands global footprint as unofficial ambassadors through international bar takeovers in Mexico, Greece, Hong Kong, Italy, India, and Kazakhstan.

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🏨 W15 Hanthana Estate Selected for Elite 50 Best Discovery Platform

Sri Lanka's boutique hospitality & tourism sector achieved international recognition as W15 Hanthana Estate was featured on the 2026 edition of 50 Best Discovery. • Global Scope: The platform added 650+ new venues in its global refresh (over 210 restaurants, 110 bars, 130 hotels, and 190 vineyards). It features 3,500+ venues across 800+ cities worldwide. • Selection Process: Establishments cannot self-nominate or apply; inclusion is strictly based on qualifying votes from 3,000+ independent global industry experts. • Property Highlights: Located in the tea country near Kandy, the luxury mountain estate offers 10 suites across a colonial-style bungalow and former stables, integrated with local activities like guided hikes to Ceylon tea plantations.

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📱 Dialog Axiata Becomes First Sri Lankan Telco to Achieve Unified ISO Certification

Leading Sri Lankan telecommunications provider Dialog Axiata PLC has completed its first fully integrated ISO certification audit, marking a key milestone for the country's telecommunications and technology infrastructure. • Key Operational Details: • Audit conducted by Quality Austria Central Asia Pvt Ltd under a single, unified framework to simplify compliance and boost operational efficiency. • Covers 10 international ISO standards spanning Quality (ISO 9001), Environment (ISO 14001), Anti-Bribery (ISO 37001), Information Security (ISO 27001), and Business Continuity (ISO 22301). • Upgraded Privacy standard (ISO 27701) to the 2026 version and expanded cloud security and continuity scope across additional physical locations. • Strategic Impact: • Establishes Dialog as the only operator in Sri Lanka maintaining a comprehensive, single-audit ISO portfolio. • Strengthens national digital resilience, corporate governance, data privacy, and risk management across key digital services supporting Sri Lanka’s ICT/BPM and enterprise sectors.

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Jetwing Hotels Secures Record 24 Tripadvisor Awards for 2026 🏨🏆

• Overall Achievement: Jetwing Hotels has earned 24 Tripadvisor Travellers’ Choice Awards for 2026, marking the highest number of honours received by any single hotel group in Sri Lanka. • Global Standing: • 23 properties ranked in the top 10% of global listings on Tripadvisor based on genuine 12-month traveler reviews. • Mermaid Hotel & Club received the elite Travellers’ Choice Best of the Best award, placing it in the top 1% of listings worldwide. • Property Highlights: Recognized properties span key tourism & hospitality hubs across Sri Lanka, including Jaffna, Kandy, Colombo, Galle, Negombo, Yala, Sigiriya, and Nuwara Eliya (e.g., Jetwing Vil Uyana, Jetwing Lighthouse, Jetwing Yala, Jetwing Colombo Seven, and Jetwing Ayurveda Pavilions). • Strategic Impact: The awards underscore the strength of Sri Lanka's travel & leisure sector, driven by high service standards and authentic guest experiences that boost the island's global brand appeal.

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📈 Sri Lanka Secures 20th Spot in Global Beach Rankings for 2026

• Global Recognition: Sri Lanka has been ranked 20th in the Travel And Tour World (TTW) Top 50 Beach Travel Destinations for 2026, highlighting its diverse coastal landscapes, natural beauty, and marine ecosystems. • Economic Impact: The international ranking underscores the vital role of sustainable coastal tourism in strengthening national economic growth, supporting local livelihoods, and promoting responsible travel. • Featured Coastlines: The editorial evaluation highlighted ten prominent local coastal spots, including world-class surf hubs like _Arugam Bay_ and _Hiriketiya Beach_, alongside popular leisure destinations such as _Unawatuna Beach_, _Mirissa Beach_, and _Pasikuda Beach_.

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NCCSL to Host 21st National Business Excellence Awards 2026 Tomorrow 📈

• Event Overview: The National Chamber of Commerce of Sri Lanka (NCCSL) will host the 21st consecutive National Business Excellence Awards (NBEA) 2026 tomorrow, July 28, at Shangri-La Colombo from 5:00 p.m. onwards. • Nominees & Scope: Over 140 nominees across 31 business categories and sectors will be unveiled during the ceremony, celebrating organizational excellence and corporate governance. • Evaluation Process: Based on a multi-stage assessment by an independent Technical and Financial Evaluation Committee chaired by Ernst & Young Partner Rajith Perera, followed by a final review co-chaired by Prof. Ajantha Dharmasiri and legal consultant Lasantha Salgado. • Key Guests: The grand event will feature French Ambassador Remi Lambert as Chief Guest alongside top corporate leaders, entrepreneurs, and diplomats, followed by a sit-down dinner and networking.

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🔬 In Memoriam: Renowned Sri Lankan Reproductive Scientist Prof. Asgi T. Fazleabas

• Global Scientific Impact: Prof. Asgerally “Asgi” T. Fazleabas made groundbreaking contributions to early pregnancy understanding and endometriosis care. He authored nearly 250 scientific papers, served on editorial boards of top journals, and held 4 major research grants late into his illness, advancing global healthcare and fertility medicine. • Distinguished Academic Career: Schooled at St. Thomas’ College and Aquinas College, he completed his PhD at the University of Illinois. He rose to University Distinguished Professor at Michigan State University and received top honors, including election as a Fellow of the American Association for the Advancement of Science. • Development of Sri Lankan Expertise: Deeply committed to strengthening local medical research and higher education, he served as Patron of the Sri Lanka Endometriosis and Adenomyosis Association, facilitated workshops, and trained young Sri Lankan researchers in his U.S. laboratory. • Key Milestone: Played a pivotal role in bringing the 13th Asian Congress on Endometriosis to Colombo in November 2025 alongside the World Endometriosis Society, significantly boosting the country's international standing in clinical research.

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📈 MullenLowe Group Sri Lanka Retains Position Among World’s Top 100 Most Effective Agencies

MullenLowe Group Sri Lanka has been recognized as the country’s highest-ranked agency office on the global Effie Index 2025, securing Sri Lanka’s No. 1 spot for the third consecutive year. • Global & Regional Standings: • Retained its ranking among the Top 100 Most Effective Agency Offices worldwide. • Placed within the Top 20 agency offices in the Asia Pacific (APAC) region. • Performance & Points Breakdown: • Accumulated 124 points as an individual agency office across 28 Effie program entries. • Recorded a combined total of 221 points across six vertical categories on the Index. • Industry Context & Growth Impact: • Strengthens its role as a key growth driver for local brand communications, digital, media, and public relations. • Emphasizes talent development and career growth to navigate evolving technology and changing market dynamics.

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📈 Carné Diem Grill by Dharshan Named to 50 Best Discovery 2026

• Global Recognition: Renowned Sri Lankan chef and restaurateur Dharshan Munidasa's Carne Diem Grill has been officially added to the prestigious global 50 Best Discovery 2026 platform. • Culinary Innovation: Located at CROSSROADS Maldives, the avant-garde steakhouse features the custom-built Ignis Maximus oven operating at 750°C, utilizing Japanese charcoal yakitori grilling principles. • Exporting Sri Lankan Talent: The establishment highlights Sri Lankan culinary excellence internationally, serving premium Australian Westholme Wagyu beef and New Zealand Maimoa lamb alongside unique artistic elements crafted by local artisans.

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🏛️ CRIB Hosts Annual CEOs Forum & Awards 2026; Launches MyCRIB App

The Credit Information Bureau of Sri Lanka (CRIB) hosted its Annual CEOs Forum 2026 under the theme "Credit Intelligence for National Progress," bringing together leaders from banking, NBFIs, insurance, telecoms, and utilities. Key Highlights & Initiatives: • MyCRIB Mobile App Launch: CRIB unveiled a consumer mobile app—making it one of the few global credit bureaus to offer real-time access to personal credit profiles, credit scores, dispute resolution, and identity verification to boost financial inclusion. • Shift in Lending Models: Discussions highlighted Sri Lanka’s transition from traditional collateral-based lending to data-driven and AI-backed trust evaluations, aiding MSMEs, young entrepreneurs, and rural communities. • Institutional Rating Awards: Recognized top financial and service institutions for excellence in data accuracy, governance, and compliance. Leader Insights: • CBSL Governor Dr. Nandalal Weerasinghe: Emphasized that digital transformation, AI, and alternative data mitigate credit risk, while calling for strong governance and privacy to ensure financial sector stability. • Dr. Hans Wijayasuriya (Advisor on Digital Economy): Noted that interoperable digital infrastructure transforms "risk" into "trust," enabling micro-SMEs to integrate into Sri Lanka’s broader digital economy.

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Commercial Bank Dominates 2026 ABF Awards in Singapore 📈

• Overall Highlights: Commercial Bank of Ceylon won six awards at the 2026 Asian Banking & Finance (ABF) Awards in Singapore—the highest haul by a Sri Lankan bank across Retail, Wholesale, and Corporate & Investment Banking. • Financial Performance: In 2025, it became the first private bank in Sri Lanka to expand its loan book beyond Rs. 2 Tn (adding Rs. 541 Bn over 12 months) and doubled its annual asset growth YoY. Market capitalization remains over US$ 1 Bn. • Retail & SME Banking: Won Private Bank of the Year and SME Bank of the Year, extending its streak as the largest lender to Sri Lanka's SME sector for five consecutive years. • Wholesale & Sustainable Finance: Received Green Financing Bank of the Year and Domestic AI Initiative of the Year for its pioneering AI-powered SME Credit Underwriting Solution, driving innovation in sustainable finance and fintech. • Corporate & Investment Banking: Secured Corporate Client Initiative of the Year for its TradeLink trade finance platform and Debt Deal of the Year for issuing a landmark Rs. 15 Bn Green Bond in 2025. • National Impact: Reinforces position as Sri Lanka’s largest private lender, holding the highest capital base in the banking sector, and operating as the country’s first 100% carbon-neutral bank.

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Sri Lankan Passport Climbs to 94th Rank in 2026 Henley Index 📈

Sri Lanka’s passport has achieved its highest global ranking in at least five years, moving up to 94th place in the 2026 Henley Passport Index. • Ranking Progression: - 2026: Ranked 94th (highest in 5 years) - 2024 & 2025: Ranked 96th - 2023: Ranked 100th - 2022: Ranked 102nd - 2021: Ranked 107th • Global Context & Scope: - Evaluates 199 passports across 227 travel destinations based on visa-free or visa-on-arrival access. - Singapore retained its position as the world's most powerful passport. - Afghanistan ranked lowest at 104th place.

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

Real Estate

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

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

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🏛️ Sri Lanka to Lease Five Presidential Residences for Tourism Development

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

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📈 John Keells Properties Unveils VIMAN Ja-Ela Show Apartment

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

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

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

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

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

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

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

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💧 Japan-Funded $143M Water Project Begins in Anuradhapura

Work has officially commenced on Phase II of the Northern Anuradhapura Water Supply Project, following a foundation stone laying ceremony attended by President Anura Kumara Dissanayake and Japanese officials. The project marks a significant step in regional infrastructure recovery following recent economic challenges. • Financial & Project Scale: Funded via a concessional loan from Japan worth approximately JPY 23 billion (equivalent to ~US$ 143 Mn). • Health & Social Impact: Aims to provide a stable supply of safe drinking water to roughly 67,000 households in the Anuradhapura District. The initiative directly targets communities heavily impacted by chronic fluorosis and kidney disease. • Cumulative Reach: When combined with the already-completed Phase 1, the entire project will collectively deliver safe water access to over 75,000 households. • Economic Context: Beyond health benefits, the project establishes an essential foundation for agricultural and industrial development in the North Central Province, improving the overall quality of life and symbolizing Sri Lanka's post-crisis recovery.

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📈 Port City Colombo Targets India for Growth, Aims to Double Tourist Arrivals

Sri Lanka’s US$ 15 Bn Port City Special Economic Zone (SEZ) has placed India at the center of its growth strategy, aiming to leverage the neighboring nation for tourism, real estate, and corporate investments. • Key Tourism & MICE Targets: Annual Indian tourist arrivals to Sri Lanka are projected to double from ~600,000 last year to 1.2 million by 2030, supported by 90 existing flights connecting the nations. Port City aims to extend the average 1.5-day tourist stay in Colombo via new attractions, including a yacht marina, South Asia's first downtown duty-free retail zone, and an upcoming event air dome by Oct-Nov 2026. • Corporate & ICT Expansion: The SEZ is actively targeting Indian ICT/BPM firms and Global Capability Centres (GCCs), positioning itself as a resilient business continuity and disaster recovery location to complement India's ecosystem. Partnerships with organizations like NASSCOM for corporate events are currently being explored. • Investment & Real Estate: Indian investors and companies are estimated to contribute roughly 25% of the total investment across businesses and real estate within the project. Furthermore, international investors from regions like Southeast Asia are increasingly viewing the SEZ as a strategic gateway to the Indian market.

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📈 Home Lands Reaches Real Estate Milestone with 5,000+ Units Sold

Sri Lankan real estate market leader Home Lands Group has set a new industry benchmark by crossing the 5,000-unit milestone in sales across 24 mega lifestyle development projects. • Overall Performance: The company has sold over 5,000 resort apartments and villas, marking the highest number of unit sales by any developer in Sri Lanka. • Delivery Track Record: Over 3,750 units have been successfully delivered to homeowners. An additional 400 units are scheduled for delivery within 2026. • Project Pipeline: The group currently has more than 2,850 units under construction spanning 9 futuristic mega lifestyle development projects. • Economic & Global Impact: Operating as an integrated group of 14 companies (including its construction arm Heyraa Construction), the firm has expanded Sri Lanka's real estate & construction footprint internationally. With offices in Australia, Dubai, and London, the group continues to drive foreign investment and capital appreciation from an overseas clientele.

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📈 LKR Depreciation Enhances Sri Lankan Real Estate Affordability for Diaspora

A notable depreciation of the Sri Lankan Rupee (LKR) against the US Dollar in June/July 2026 has dropped primary market property prices in USD terms, making real estate highly attractive to foreign and diaspora buyers. Key market insights from the Research Intelligence Unit (RIUNIT): • Market Pricing & Demand: While USD-denominated prices dropped, LKR-denominated property prices continue to rise steadily. Strong domestic demand remains the core driver of the local market. • Apartment Absorption Rates: Colombo’s apartment absorption is exceptionally strong, averaging near 100% for Tier 3 units and above 90% for Tier 2 units, with growing absorption recorded across all 13 Colombo Wards and over 20 Western Province suburbs. • Macroeconomic Boost: Following 5% economic growth in 2025, the World Bank upgraded Sri Lanka to an _upper-middle-income economy_ (per capita income: US$ 4,670). • Port City Colombo: Momentum remains high with over US$ 600 Mn invested so far in 2026. Leading developers have leased multiple plots and launched 3 major new projects.

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📈 Premium Condominium Sales Above Rs. 50 Mn Lead Colombo Market in Q1 2026

The Colombo District condominium market in Q1 2026 showed a clear shift toward luxury segments despite a broader slowdown in transaction volumes, based on provisional data. • Overall Market Activity & Prices • The Price Index for New Condominiums in Colombo reached 284.4, an 18.5% YoY increase. • The Sales Volume Index decreased by 15.2% YoY, indicating cooling market activity. • Land asking prices in Colombo surged by 31.9% YoY, while housing and condo asking prices rose 6.4% and 11.0% respectively. • Sector & Price Breakdowns • Luxury Units (Above Rs. 75 Mn): Market share grew sharply to 29%, up from 11% a year ago. • Premium Units (Rs. 50 Mn - Rs. 75 Mn): Share edged up slightly to 23% from 22%. • Mid-Range Units (Rs. 25 Mn - Rs. 50 Mn): Share dropped significantly to 29% from 49% a year prior. • Affordable Units (Below Rs. 25 Mn): Stood relatively stable at 19% vs 18% YoY. • Regional Metrics • Colombo remains the primary hub, commanding 65% of total sales transactions. • Single condo projects in Colombo accounted for 59% of transactions, followed by Gampaha and Kalutara districts at 32%. • Inventory & Buyer Demographics • Inventory: Completed projects are nearly exhausted, with 98% of units sold. Ongoing projects have 51% of units pre-reserved. • Funding: Resident Sri Lankans remain the primary buyers, largely purchasing for immediate occupancy. Notably, 80% of transactions were financed using own funds over bank loans. • Development: Pre-sale deposits continue to be the main funding source for developers, contributing 48% of development capital.

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📈 Rs. 4 Bn JAT Astera Residencies Breaks Ground in Thalawathugoda

The Design Consortium International (DCIL) has officially commenced construction on JAT Astera Residencies, a premier Rs. 4 billion luxury residential development located in Thalawathugoda. • Project Overview: The 12-storey luxury apartment complex will feature 104 apartments and six penthouses. Piling work started last week via Sincon Piling, kicking off the construction phase for the project developed by JAT Living. • Design & Pricing: Unit sizes begin at just under 1,200 sq. ft., with residences priced from Rs. 49 million upwards. The architectural layout ensures every bedroom features a private balcony overlooking uninterrupted paddy field views. • Key Amenities: Features a massive 14,000 sq. ft. landscaped rooftop communal space including an amphitheatre, green areas, and a movement zone. The construction & real estate project also incorporates a swimming pool, gymnasium with a sauna, a 630 KVA generator for 100% backup power, and rainwater harvesting infrastructure. • Industry Context: Designed by DCIL, a fully integrated Sri Lankan architectural and engineering firm founded in 1987. The project represents continued high-end investment within Sri Lanka's suburban real estate and modern urban development sectors.

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Uncategorized

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⚠️ Failed to Generate Summary: Data Unavailable

• Status: Unable to process the requested article from Daily FT (`www.ft.lk`). • Reason: Connection timed out while attempting to retrieve the content. • Note: Please provide the news text directly or try submitting the request again once the source website is accessible.

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📰 Sri Lanka Business Briefing: Cartoon (29.07.2026)

• Data Availability: The provided news item consists solely of a daily cartoon title without textual content, market statistics, or economic data. • Summary Status: No summary can be generated due to missing information.

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📈 Book Review: 'Hundred Capsules of Motivation' by Tharindu Dananjaya Weerasinghe

• Overview: Authored by University of Kelaniya academic Tharindu Dananjaya Weerasinghe, the book delivers practical guidance on self-growth, emotional intelligence, and leadership across 100 concise, one-page chapters. • Core Themes: • Mindset & Discipline: Highlights that while motivation initiates action, long-term success relies on discipline, focus, and small daily habits over temporary enthusiasm. • Energy Management: Emphasizes managing mental energy and personal priorities alongside traditional time management to optimize individual productivity. • Accountability: Reframes professional growth, noting that avoiding responsibility hinders progress—summarized by the quote: _"Excuses make today easier, but tomorrow harder."_ • Context: Serves as a resource for readers seeking growth in personal, academic, and corporate leadership settings to enhance productivity and workplace performance.

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🏛️ Pathfinder Foundation & Indian High Commission Host Symposium to Strengthen Pali Studies

• Event Overview: Pathfinder Foundation, the High Commission of India, and ICCR held a joint symposium in Colombo on 24 July 2026 to formulate strategies for preserving and promoting Pali language studies in Sri Lanka. • Key Stakeholders: Attended by senior members of the Maha Sangha across all three Nikayas, Indian High Commissioner Santosh Jha, academics, and policymakers. • Key Challenges & Education Integration: Keynote speaker Ven. Prof. Medagampitiye Vijithadhamma Thera highlighted that the decline in humanities & higher education enrollment stems from limited job prospects. He stressed the need for tighter collaboration between schools, Pirivena education, and universities. • Tech & Modernization Proposals: - Implementation of a national Pali examination system (similar to Thailand/Cambodia). - Utilization of AI & digital technology, including Optical Character Recognition (OCR), to digitize ancient palm-leaf manuscripts. • Bilateral & Cultural Ties: High Commissioner Santosh Jha reaffirmed India's commitment following its 2024 conferment of Classical Language status on Pali, supporting local efforts such as reprinting classical grammar texts (Namamala and Balawatharo).

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⚖️ Former SJB MP Sentenced to 18 Months Imprisonment

• Legal Action & Verdict: Badulla High Court sentenced former Badulla District Samagi Jana Balawegaya (SJB) MP Chaminda Wijesiri to 1.5 years’ imprisonment. • Core Charges: Convicted of wrongful restraint, assault causing bodily harm, and criminal intimidation of police officers. • Incident Details: Case stems from a 2019 altercation following an argument near the Bandarawela roundabout when a police jeep overtook his vehicle.

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🚨 Canadian National Arrested at BIA with Rs. 201.89 Mn Worth of Hashish

A 27-year-old Canadian national has been taken into custody at Bandaranaike International Airport (BIA) in Katunayake following a major narcotics interception. • Seizure & Valuation Details: Authorities confiscated 20 kg and 117 g of hashish concealed in the suspect's luggage, estimated to have a street value of Rs. 201.89 million based on preliminary investigations. • Transit & Origin Route: According to investigators, the suspect purchased the narcotics in Toronto, Canada, flew to Doha, Qatar, and arrived in Sri Lanka on Qatar Airways flight QR-662 at approximately 2:30 a.m. yesterday. • Current Status: Contraband was detected during routine baggage screening upon arrival. Investigations are ongoing based on provisional law enforcement data.

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🚨 Devinuwara Perahera: Police Recommend Removing Kavadi Segment Over Security Concerns

• Security Advisory: Police have recommended removing the Kavadi dance segment from the Devinuwara Sri Uthpalawanna Vishnu Devalaya Perahera scheduled for tomorrow (28 July) due to potential security risks. • Intelligence Reports: The recommendation, issued by IGP Priyantha Weerasooriya, follows intelligence assessments from the Chief of National Intelligence, State Intelligence Service, and Police Special Branch indicating a possible confrontation among organizing groups and performers. • Unverified Claims: The decision follows social media speculation regarding disputes involving underworld figures linked to the procession, though these claims remain unverified independently. • Current Status: Matara District Secretary Chandana Thilakaratne has conveyed the written recommendation to the Basnayake Nilame. The annual festival continues under heightened security.

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🎭 Soul Sounds Hosts "The Pop Era" Concert at Lionel Wendt

• Event Overview: Renowned Sri Lankan vocal ensemble Soul Sounds, led by Music Director Soundarie David Rodrigo, staged "The Pop Era" on 12 July at the Lionel Wendt Theatre. • Performance Highlights: The production featured a journey through decades of global pop anthems, including medleys from ABBA, Michael Jackson, Britney Spears, as well as high-octane rock and classic love songs. • Key Contributors: Directed by Soundarie David Rodrigo with 2026 ensemble leaders Anagi Perera and Nadine Ollegasegrem; backed by a live band and stage production team including Kevin Cruze and Kishan Perera (Unique Sounds).

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Aussie Comedian Sashi Perera Shows in Colombo Today and Tomorrow 🎭

• Event Overview: Australian-born Sri Lankan comedian Sashi Perera brings her stand-up show _"Pear Tree"_ to Colombo on 24 and 25 July. The tour marks a homecoming following sold-out international shows across Australia, Europe, the UK, and New Zealand. • Key Highlights: - July 24: Matinee show at 4.00 p.m. and Main show at 7.00 p.m. at Elphinstone Theatre, featuring opening acts by Lushani Wijayasekara and Dylan J. Prins. - July 25: _"Pear Tree Salon"_ at 7.30 p.m. at COCO Bar, an "In Conversation" session featuring signed copies of her memoir Standstill, followed by an after-party at 9.30 p.m. • Profile & Context: Formerly a refugee lawyer, Sashi has gained over 60 million online views and a nomination for Best Newcomer at the 2023 Melbourne International Comedy Festival. Organized by strategic PR consultancy Scarlet Cat, the event reflects growing engagement with diaspora talent in Sri Lanka's entertainment & creative industries.

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📈 Unable to Generate Summary: Article Content Unavailable

• Overview: The attempt to fetch the requested Sri Lankan economic article from Daily FT timed out (`Read timed out`), preventing content extraction. • Status: Summary unavailable due to incomplete or unreachable input data.

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Headline: No Content Provided for Summary

• Overview: The input provided contains only a title ("Cartoon 24.07.2026") and no news content or data to summarize. • Note: Please provide text or data related to Sri Lankan business, market, or economic news to generate a full summary.

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🚨 Violent Incident at Colombo Port City: Chinese National Killed

• Incident Overview: A clash between two groups of Chinese nationals occurred at Colombo Port City during the early hours of July 23. One victim was abducted, assaulted, and later found murdered in Eheliyagoda. • Law Enforcement Action: Sri Lanka Police recovered the victim's body along with a vehicle used in the abduction and an air pistol at the scene. Two suspects were arrested at Bandaranaike International Airport (BIA) while allegedly attempting to flee the country. • Diplomatic Response: The Chinese Embassy in Sri Lanka is closely monitoring the case, urging local authorities to conduct a thorough investigation and safeguard the safety of Chinese citizens in Sri Lanka. • Impact on Port City: The investigation is being handled by Foreshore Police and forensics, marking a notable security incident within the high-profile Colombo Port City Special Economic Zone.

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Appointments & Executive Moves

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📈 Ceylon Tobacco Appoints Adrian Lee Peng Yong as Finance Director

Ceylon Tobacco Company PLC (CTC) has announced the appointment of Adrian Lee Peng Yong as its new Finance Director, effective 1 August 2026. • Corporate Leadership: Adrian brings 20 years of cross-functional finance and strategic leadership experience within the British American Tobacco (BAT) Group across Asia Pacific, Middle East, and Africa (APMEA). • Previous Roles: Most recently served as Finance Director for BAT Malaysia and Singapore Cluster. He also previously held the position of Regional Head of Operations Finance for APMEA. • Governance & Performance: Recognized for driving financial growth, productivity agendas, and corporate governance—leading BAT Malaysia to 1st place in Consumer Products at the MSWG-NACGSA Corporate Governance Awards. • Strategic Focus: In his new role at CTC, he will oversee financial stewardship, sustainability, and commercial growth initiatives in Sri Lanka. • Qualifications: Holds a Bachelor of Business Management (Double Major in Finance & Marketing) from Singapore Management University.

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🏛️ Tribute: H.M.R. Ellepola’s Key Contributions to CBSL & Economic Policy

• Macroeconomic & Fiscal Policy Guidance: Led early macroeconomic assessments during 1970s liberalisation and the accelerated Mahaweli Development Project. Built foundational frameworks later used to establish the Credit Information Bureau (CRIB) (1990) and introduce domestic credit rating systems like Fitch Ratings (1998). • Inflation Control & Monetary Reforms: Managed severe quantitative credit controls in the 1980s, successfully bringing inflation down from above 25% within two years. Standardized the Central Bank of Sri Lanka (CBSL) annual budgeting process and modernized reserve money control frameworks (later applied at the Central Bank of Seychelles). • Financial Sector & Capacity Building: Served as Secretary to the Monetary Board and Executive Director overseeing public debt, currency issue, and banking operations. Advanced professional banking standards as Vice Chairman of the Institute of Bankers of Sri Lanka (IBSL), introducing postgraduate qualifications, curriculum overhauls, and formal convocation ceremonies.

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📈 Tribute to Dr. Lester Massingham: A Legacy in Management Education

The global and Sri Lankan management communities mark the passing of renowned scholar, educator, and strategic management consultant, Dr. Lester Massingham. • Academic & Professional Contributions: • Durham University graduate and influential author of global textbooks, including _Essentials of Marketing_ and _Marketing Case Studies_. • Played a key role in strengthening professional marketing education through the Chartered Institute of Marketing (UK). • Impact on Sri Lanka's Corporate & Academic Sectors: • Crucial in developing national postgraduate management education, specifically shaping Master and Doctor of Business Administration (MBA/DBA) programs. • Advised top Sri Lankan organizations on marketing & strategic management, building local human capital, executive leadership, and corporate capabilities. • Legacy: • Widely recognized for advancing rigor, strategic thinking, and mentor-driven growth across both academia and the broader business ecosystem.

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⚖️ Prof. G. L. Peiris to Form Trust Fund for Legal Research at UoC and Sri Lanka Law College

Initiative: Prof. G. L. Peiris has announced plans to establish a Trust Fund using royalties from his legal publications (>10 books on Sri Lanka’s legal systems) to finance research and academic initiatives. Beneficiaries: The Faculty of Law at the University of Colombo (UoC) and the Sri Lanka Law College. Governance: The proposed trustees will be the Vice-Chancellor of UoC, the Principal of Sri Lanka Law College, and the Dean of UoC's Faculty of Law. Journal Revival: The announcement was made at the launch of the revived Sinhala-language journal, ‘Nitiya’ (originally published in 1958, revived in 2024), which aims to foster analytical legal writing, including emerging areas like artificial intelligence (AI), judicial critique, and legislative contributions.

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📈 Shemara Wikramanayake to Retire as Macquarie CEO with $ 860M+ in Shares

Sri Lankan-origin Shemara Wikramanayake, 64, has announced her retirement as CEO of Macquarie Group after eight years at the helm and nearly four decades with the firm. She will officially step down in November 2026 and be succeeded by Greg Ward, Head of Banking and Financial Services. • Executive Compensation & Holdings: Wikramanayake departs with over $ 860 million (A$ 1.3+ Bn) in total equity, including 1.47M direct shares valued at $ 375M+, alongside restricted and performance share units. Her total remuneration last year was nearly $ 30 million, making her Australia’s fifth highest-paid CEO. • Corporate Governance: At a tense Annual General Meeting (AGM), Macquarie avoided a "second strike" board spill despite pushback on executive pay packets from groups like the Australian Shareholders' Association. • Fossil Fuel & Climate Backlash: Leadership faced intense grilling from shareholder collectives over funding massive fossil fuel expansions, such as the Beetaloo Basin gas fracking project, which investors argued directly contradicts the Paris Agreement. • Financial Performance: Wikramanayake leaves the financial services titan in a strong position, having recently reported a 30% increase in full-year net profit to $ 4.85 billion.

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New Secretary Appointed for Transport, Highways & Urban Development 📑

• Key Leadership Appointment: President Anura Kumara Dissanayake has appointed Eng. Dr. Asiri Karunawardena as the Secretary to the Ministry of Transport, Highways, and Urban Development. • Official Handover: The official letter of appointment was presented by Dr. Nandika Sanath Kumanayake, Secretary to the President, at the Presidential Secretariat. • Background: Prior to assuming this top administrative role overseeing national infrastructure & urban development, Dr. Karunawardena served as the Director General of the National Building Research Organisation (NBRO).

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🤝 JICA & EDB Reinforce Partnership to Boost Sri Lankan Exports

A delegation from the Japan International Cooperation Agency (JICA) paid an official courtesy call on the Sri Lanka Export Development Board (EDB) to review ongoing technical cooperation and discuss future strategies for strengthening export development. • Leadership Transition: • Welcomed newly appointed JICA Chief Representative, Mr. Shigeo Honzu. • Acknowledged outgoing Chief Representative, Mr. Kenji Kuronuma, for his contribution to bilateral economic cooperation. • Key Areas of Engagement: • Reviewed past joint programs focused on technical cooperation, capacity building, and enhancing export competitiveness. • EDB leadership (Chairman/CEO Mr. Mangala Wijesinghe & Acting DG Mr. Erandika Dissanayake) acknowledged JICA's ongoing support in empowering the local trade and investment ecosystem. • Future Focus & Strategic Goals: • Explored new initiatives aimed at expanding market access for local business ventures. • Emphasized institutional capability building, sustainable growth, and driving long-term economic progress for Sri Lankan exporters.

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📈 Sri Lanka Emerges as a Global Hub for Leadership and Digital Innovation

• Landmark Event: EY Global Delivery Services (EY GDS) hosted its largest-ever event in Colombo at Cinnamon Life, bringing together nearly 3,500 global professionals and senior leadership. • Economic Vision: Prime Minister Dr. Harini Amarasuriya emphasized the National Digital Economy Strategy, aiming to embed AI-first operations, expand ICT/BPM exports, and establish Sri Lanka as a regional innovation hub. • Talent & Growth: The milestone celebration honoured internal promotions and highlighted Sri Lanka's rapidly growing potential as a premier destination for talent development, digital technology, and high-value global services.

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👔 Sanath Manatunge Appointed Chairman of Employers’ Federation of Ceylon (EFC)

Mr. Sanath Manatunge, Managing Director/CEO of the Commercial Bank of Ceylon, has been appointed as the Chairman of the EFC for the 2026/27 financial year. The appointment took place at the federation's 97th Annual General Meeting. • Leadership & Transition: Mr. Manatunge succeeds Mr. Dinesh Weerakkody. He will serve alongside Vice Chairman Mr. Dinal Peiris (Chairman/MD of Lanka Aluminium Industries PLC Group). • Strategic Focus: In his inaugural address, Mr. Manatunge emphasized the EFC’s commitment to driving labour law reforms to support future-ready businesses, promoting responsible business practices, and engaging constructively with tripartite stakeholders to strengthen Sri Lanka's employment landscape. • Industry Expertise: Bringing over 36 years of experience in the banking and finance sector, Mr. Manatunge has led Commercial Bank as MD/CEO since May 2022. He previously managed major expansions in the bank's corporate loan book, trade finance, personal banking, and digital banking infrastructure. • National Roles: He concurrently holds prominent leadership positions across the economy, serving as Chairperson of the Sri Lanka Banks’ Association (SLBA), and as a member of the UNICEF Business Council, the Ceylon Chamber of Commerce, and the Central Bank of Sri Lanka’s Stakeholder Engagement Committee.

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👔 HNB General Insurance Strengthens Board with Elite Leadership Appointments

HNB General Insurance Ltd. (HNBGI) has appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its Board. The strategic additions aim to accelerate digital scaling and transform customer service architecture. • The Strategic Objectives: The appointments are positioned to elevate financial strategy, regulatory frameworks, and drive future-ready disruption across service channels, pushing HNBGI toward its goal of becoming Sri Lanka's most customer-centric general insurer. • Lakshman Silva (Financial Governance): Brings over 30 years of banking acumen. He is the former CEO of DFCC Bank PLC (2017–2021) and former Chairman of the Sri Lanka Banks' Association. He currently chairs LankaPay and Panasian Power PLC, and serves on multiple boards, including Seylan Bank and HNB Life PLC, alongside the Central Bank's Stakeholder Engagement Committee. • Sandra De Zoysa (Digital & CX): A globally recognized leader with over three decades in the ICT/BPM industry. She spent 28 years at Dialog Axiata PLC, serving as Group Chief Customer Officer and Managing Director of Dialog Business Services. She is a founding member and first Chairperson of SLASSCOM, and currently heads CEx Consulting and the Sri Lanka Institute of Directors' Women Directors Forum.

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Sri Lankan Leader Vera Wickramasinghe Elected President of Global Logistics Network FFN 📈

• Historic Milestone: Vera Wickramasinghe, Managing Director of Worldlink Shipping Colombo, has been elected President of the Freight Forwarder Network (FFN) – Netherlands. She is the first female President and the first from outside Europe and the US in the network's history. • Global Leadership: The election took place at the FFN AGM in Barcelona, Spain. Wickramasinghe, founder of Worldlink Shipping and winner of the WCIC Prathibhabhisheka Women Entrepreneur Award 2025, will lead strategic expansion and collaboration across the network's 48 member countries. • Sri Lanka's Logistics Footprint: This high-profile appointment underscores the rising international recognition of Sri Lankan professionals in the global logistics & freight forwarding sector. It builds on the momentum of Colombo successfully hosting the FFN’s 15th AGM at ITC Ratnadipa, cementing the country’s profile as an emerging regional logistics hub.

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📈 New Leadership at SLASSCOM to Drive US$ 5 Bn Export Target

The Sri Lanka Association for Software Services Companies (SLASSCOM) has appointed Sampath Jayasundara (CEO of hSenid Business Solutions) as Chairman for the 2026/27 term, steering the ICT/BPM sector towards its US$ 5.00 Bn export goal. • Key Leadership & Board: Jayasundara succeeds with a new board including Vice Chairs Haridhu Abeygoonaratne (SimCentric) and Sanjini Munaweera (ADA), alongside Shanaka Fernando (WNS) as Director Operations and Bimal Gunapala (Global Frontiers) as Director Finance. • Strategic Focus Areas: Shift from cost-competition to a high-value, product-led digital economy. Developing an AI-ready workforce via the SLASSCOM Academy and university curriculum reforms. Launching a flagship Entrepreneurship Development Program to scale local startups globally. Strengthening academia-industry collaboration through structured internship programs in AI, cybersecurity, and data analytics.

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

Financial & Investment News

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

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

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

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

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📈 SEC & CSE to Host Regional Investor Forums in Monaragala & Batticaloa

The Colombo Stock Exchange (CSE) and Securities and Exchange Commission of Sri Lanka (SEC) are hosting free investor forums to boost financial literacy and broaden domestic investor participation. • Monaragala Forum: 16 July, 11:00 a.m. – 1:00 p.m. at Silanrich Hotel (conducted in Sinhala). • Batticaloa Forum: 18 July, 3:00 p.m. – 5:00 p.m. at FG Golden River Hotel (conducted in Tamil). • On-Site Account Opening: Representatives from stockbroker and unit trust firms will facilitate immediate account opening. The first 200 participants opening an account at each venue will receive a promotional investment coupon from the SEC and CSE. • Strong Market Momentum: The outreach follows robust growth in Sri Lanka's capital market, with the All-Share Price Index (ASPI) climbing from 4,846 points in May 2020 to 22,310.80 points in May 2026—a 360% overall increase and a CAGR of ~28.98%, while capital gains remain tax-free.

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📈 TWC Capital Secures US$ 28 Mn IFC Funding for Sri Lanka’s Energy & Agribusiness

TWC Capital Ltd. has successfully advised on up to US$ 28 million in long-term development financing from the International Finance Corporation (IFC) across two critical Sri Lankan sectors. This brings TWC's total offshore finance and FDI mobilization for the country to approximately US$ 125 million over the past 12 months. • Overall Funding Breakdown: • Total IFC Investment: Up to US$ 28 Mn. • Renewable Energy Sector: Up to US$ 18 Mn. • Agribusiness Sector: US$ 10 Mn. • Sector Impact & Project Outcomes: • Renewable Energy: The US$ 18 Mn local currency facility granted to WindForce PLC supports Sri Lanka’s first utility-scale 100 MW solar power project. It is projected to generate roughly 220 GWh of clean electricity annually, boosting national energy security and lowering long-term power costs. • Agribusiness: The US$ 10 Mn investment (including GAFSP support) awarded to New Anthoney’s Farms Group will expand the country’s only fully antibiotic-free poultry operation. The funding aims to boost export capacity, secure national food supplies, benefit 200 contract farming households, and create over 900 new jobs to support rural livelihoods.

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Startups & Entrepreneurship

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

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

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👗 Ye Couture: Sri Lankan Luxury Fashion Brand Expands Globally

Founded in 2014 by designer Buddhika Kodikara, luxury-clothing brand Ye Couture is expanding its footprint from high-profile local entertainment to international retail, driving growth in the apparel & textiles sector through designer wear. • Global & Local Expansion: Following its establishment in the domestic market, the brand expanded its international reach by opening its first store in the USA in 2025. Plans are also underway to launch a dedicated ready-made clothing store in Sri Lanka, contributing to retail sector diversification. • Market Presence & Portfolio: The brand has solidified its position through high-profile costume designing for major national television franchises (including Voice Teen Sri Lanka and Hiru Avurudhu Kumariya) and a celebrity clientele featuring prominent Sri Lankan figures. • Inclusive Innovation: Demonstrating a commitment to niche market diversification, the brand has developed a specialized clothing line tailored for children with special needs. • Economic Outlook: Supported by local operational teams, the brand aims to elevate Sri Lankan craftsmanship and design talent on the global fashion map, positioning local high-fashion as a viable export and creative industry segment.

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🚀 Sri Lankan-Founded AI Startup 'Logical' Secures Y Combinator Entry & Rs. 150M+ Funding

• Milestone Achievement: Logical has become what is believed to be the first startup with a fully Sri Lankan founding team to be accepted into Y Combinator (YC), the premier Silicon Valley accelerator behind global giants like Stripe and Dropbox. • Funding Raised: The startup has secured over Rs. 150 Mn in initial funding, providing a strong launchpad to build a globally competitive product from Silicon Valley. • Product & Innovation: Positioned within the AI and ICT/BPM sectors, Logical is developing a proactive desktop AI copilot for knowledge workers. Unlike traditional chatbots, the tool seamlessly understands work context across daily applications, allowing users to automate actions, draft emails, and log meeting takeaways with minimal prompting. • Local Talent, Global Impact: Co-founded by Kandy-born engineers Samurdhi Karunaratne (UCLA PhD, ex-NVIDIA) and Anushka Idamekorala (University of Virginia PhD), both alumni of leading Sri Lankan state engineering universities (University of Peradeniya and University of Moratuwa). The founders aim to showcase that world-class software and technology can be built by Sri Lankan engineers competing at the highest global levels.

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📈 Empowerment Over Relief: Rotary Initiative Targets Sri Lankan MSME Growth

As Sri Lanka shifts from crisis management to economic recovery, civic organizations are pivoting from traditional aid to sustainable economic empowerment. • The Economic Backbone: Micro, small and medium enterprises (MSMEs) are vital to Sri Lanka's economy, accounting for nearly 45% of national employment and contributing well over 50% of the Gross Domestic Product (GDP). • The "Made in Sri Lanka" Initiative: During the 2025-2026 Rotary year, Rotary District 3220 trained nearly 4,000 entrepreneurs nationwide. The program focused on building capacity in digital marketing, brand development, and export readiness to boost long-term competitiveness. • Strategic Partnerships & Market Access: - National Enterprise Development Authority (NEDA): Organised SME Conclaves to connect certified local businesses (SLSI and GMP compliant) with supply chains in international markets like the UK and Australia. - Information and Communication Technology Agency (ICTA): Enhanced the digital capability of local businesses through training in digital branding, data analytics, and e-commerce platforms. This model represents a shift toward building long-term capability, self-reliance, and market creation over temporary aid.

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📈 Ceylon Chamber Launches 'Scale Up 2.0' to Boost Sri Lanka’s SME Ecosystem

The Ceylon Chamber of Commerce has officially launched Scale Up 2.0, its flagship National SME Forum for 2026. Scheduled for 11th August 2026 at the Taj Samudra, Colombo, the event is themed “Connected, Competitive, Ready to Grow.” • Strategic Focus: The forum is designed to help Small and Medium Enterprises (SMEs) overcome critical barriers, including accessing markets, securing finance, meeting evolving business requirements, and integrating into local and global value chains. • Key Sessions: The program will feature an opening plenary on national priorities for SME development, followed by three technical sessions covering: - Market access and value chain integration - Standards and certification - Strategies for scaling mid-sized enterprises through improved investment readiness and access to finance • B2B Networking: A dedicated B2B segment will allow SMEs to engage directly with buyers, financial institutions, policymakers, and business support organizations. This interactive platform aims to facilitate new business relationships, procurement opportunities, and partnerships to support long-term business expansion and competitiveness.

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📈 Sri Lanka SME Ecosystem Needs Shift from Debt to Equity Capital

• Current Reality: Despite 70 years of multilateral support and a robust central regulatory mechanism, Sri Lanka's SME sector—traditionally hailed as the engine of economic growth and the largest employer—remains struggling and marginalized. Access to credit is severely hampered by high regional interest rates ranging from 14% to 24%. • Key Ecosystem Deficiencies: Local SMEs fall short in long-term journey mapping across three critical pillars: commercial viability, enterprise scalability, and succession sustainability. Growth is further restricted by a "tunnel vision" approach to product refinement, market development, and heavy reliance on bank loans instead of patient capital. • The Equity Capital Vacuum: Because 98% of banking funds come from depositors, commercial banks face risk constraints that prevent equity financing. Over the past 50 years, fewer than five SMEs have successfully transitioned to an initial public listing (IPO). • Impact Investing & Strategic Interventions: Real growth requires a 5-to-10-year horizon of patient equity capital. Initiatives like Lanka Impact Investing Network (LIIN) are actively working to bridge this gap, previously launching the "Ath Pavura" reality show (securing equity for ~50 entrepreneurs) and introducing "On Eagle’s Wing" to connect MSMEs with global impact investor networks.

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AI Pioneer Suggests Sri Lanka Leapfrog via Precision Brain Healthcare 🧠

Sri Lankan-born computational neuroscientist Emil Hewage, co-founder of UK-based BIOS, highlighted critical growth opportunities for Sri Lanka to build advanced AI-driven healthcare infrastructure from the ground up rather than chasing mature markets. • Precision Healthcare Opportunities: Sri Lanka faces a rapidly aging population, creating unique demand for specialized precision brain care and neural interface technologies. Leveraging a strong medical workforce and a concentrated population, the country has a distinct advantage to cultivate a world-class brain health ecosystem with focused, high-value investment. • Global Application & Performance: The ICT/BPM-adjacent medical algorithms deployed by BIOS operate at 2,000 times the accuracy of a human, reducing precision surgical timelines from up to a year down to single, highly accurate procedures. AI applications originally derived from Formula One racing are currently being cross-utilized in smart-city infrastructure across the UK, South Korea, and California to manage traffic and save millions in road maintenance. • Data Sovereignty & Local Trust: Due to the extreme sensitivity of neurological data, Hewage advocates for local tech integration managed by regional health authorities and trusted domestic institutions rather than reliance on global big-tech scalers. _Note: Insights are based on executive commentary regarding future technology positioning and national leapfrogging strategies._

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📈 Over 250 Gather for Kalutara Business & Investment Summit

Lanka Business TV’s eighth island-wide "Vyavasayaka" Business and Investment Summit concluded with significant public response at the Jie Jie Beach Hotel in Panadura. The initiative focuses on bridging the economic knowledge gap for local entrepreneurs. • Key Highlights: • Participation: Over 250 attendees, including existing entrepreneurs and individuals seeking economic literacy. • Expert Insights: Keynote address delivered by Dr. Chaminda Weerasiriwardena, with guest lectures and corporate presentations focusing on wealth management (NDB Wealth), cybersecurity (Sri Lanka CERT), and real estate/asset management (John Keells Properties). • National Expansion: The Kalutara event marks the 8th district-level summit held across Sri Lanka. • Future Outlook: Lanka Business TV announced ongoing arrangements to expand the initiative further into the Kandy and Kurunegala districts later in 2026 to support regional economic integration.

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Industry & Sector News --- To see highlights from the opening of this journalism summit, you can watch the coverage of the ['SLIM Media Fest 2026' grand start](https://www.youtube.com/watch?v=mt_4HWlX9OE).

📈 SLIMFA MediaFest 2026: Call for Trust-First Journalism as AI Reshapes News

Top media leaders and government officials from Sri Lanka and India gathered at MediaFest 2026 in Colombo to address technological disruption, AI integration, and the critical need to preserve public trust amid rising misinformation. • Core Themes & Collaboration: Themed "Staying Relevant in a Changing World," the event urged newsrooms to adapt to digital shifts without sacrificing editorial discipline. Indian High Commissioner Santosh Jha called for stronger bilateral media collaboration, promising continued support for journalist exchanges, newsroom visits, and institutional partnerships to counter false narratives. • Key Leadership Insights: Mass Media Minister Dr. Nalinda Jayatissa stated that AI should be leveraged to strengthen investigation and verification rather than replace editorial judgment, emphasizing that governments must safeguard independent journalism. ANI Chief Editor Smita Prakash warned that AI makes deception faster and cheaper, asserting that verification is now as vital as reporting and urging professionals to "trust, but verify." India Today Managing Editor Marya Shakil advised newsrooms to adopt the speed of digital creators while strictly retaining newsroom discipline. • Institutional Impact: Organized by the Sri Lanka–India Media Friendship Association (SLIMFA), President Nisthar Cassim highlighted the body's rapid evolution since 2024 into a premier platform fostering professional dialogue, masterclasses, and knowledge-sharing between the two nations' media ecosystems.

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