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Global & International Business

📈 Sri Lanka–Hong Kong Strategic Bilateral Trade and Investment Links Strengthened

• Event Overview: The Export Development Board (EDB) and National Chamber of Commerce (NCCSL) partnered with HKETO, InvestHK, and HKTDC to host the "Bridging Markets" seminar and networking dinner in Colombo, gathering over 100 Sri Lankan exporters. • Sector Representation: Sri Lanka's export ecosystem was represented by diverse high-potential industries, including apparel, tea, ICT and software, boat building, gems, food, and handicrafts. • Strategic Focus: Discussions centered on positioning Hong Kong as a gateway for Sri Lankan exports to access Mainland China and wider Asian markets, while promoting internationalization, investment facilitation, trade fairs, and SME support.

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📈 Sri Lanka–Hong Kong Strategic Bilateral Trade and Investment Links Strengthened

• Event Overview: The Export Development Board (EDB) and National Chamber of Commerce (NCCSL) partnered with HKETO, InvestHK, and HKTDC to host the "Bridging Markets" seminar and networking dinner in Colombo, gathering over 100 Sri Lankan exporters. • Sector Representation: Sri Lanka's export ecosystem was represented by diverse high-potential industries, including apparel, tea, ICT and software, boat building, gems, food, and handicrafts. • Strategic Focus: Discussions centered on positioning Hong Kong as a gateway for Sri Lankan exports to access Mainland China and wider Asian markets, while promoting internationalization, investment facilitation, trade fairs, and SME support.

Economy-wide / Cross-sector
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🤝 Sri Lanka & Japan Hold Inaugural Talks on Export-Oriented Industrial Corridor

• Key Development: The first meeting of the Sri Lanka-Japan Joint Working Group (JWG) was held in Colombo to implement the 'Conceptual Roadmap on Building an Export-Oriented Industrial Corridor.' • Context: Established following the Intergovernmental Economic Policy Dialogue in February, the JWG serves as a working-level framework to drive export-oriented industrialization. • Strategic Priorities: Discussions centered on enhancing the business environment, identifying priority sector areas, and setting implementation timelines. • Investor Engagement: Concurrently, the 5th Japan–Sri Lanka Committee on Business Environment met at the BOI, featuring Japanese companies, JETRO, JICA, and JCCI. • Investment Goals: Talks focused on resolving operational challenges faced by Japanese enterprises to boost foreign direct investment (FDI) and deepen bilateral economic cooperation.

Economy-wide / Cross-sector
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📈 Sri Lanka–China Business Council Celebrates 25th Anniversary

The Sri Lanka–China Business Council (SLCHBC) of The Ceylon Chamber of Commerce marked 25 years of bilateral trade cooperation under the theme "25 Years of Unwavering Alliance." • Key Trade Dynamics (2025 Data): China retained its position as Sri Lanka's largest import partner in 2025. Key imports from China: Iron and steel, knitted fabrics, and vehicles. Top Sri Lankan exports to China: apparel, tea, activated carbon, vegetable fibre, and coconut husk chips. • Government & Bilateral Focus: Sri Lankan Minister of Trade reaffirmed commitment to a stable, transparent, and investor-friendly environment. Chinese Embassy representatives emphasized promoting a bilateral Free Trade Agreement (FTA), attracting investment, and increasing Sri Lankan exports. • Future Priorities: Expanding market and investor access for local SMEs. Facilitating tech transfers and skill development. Targeting growth in digital trade, artificial intelligence, renewable energy, and advanced manufacturing.

Economy-wide / Cross-sector
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🌐 Existential Realism: Rethinking Sri Lanka's Foreign Policy in a De-Globalising World 📈

• Global Shift & De-Globalisation: The international order is fragmenting into a complex, bipolar/multipolar framework (USA–China–Russia). Unilateral sanctions, tariff wars, and global supply blockades—such as disruptions in the Strait of Hormuz—are weakening traditional Western-led economic globalization. • Risks of West-Centric & Sub-Regional Alignment: Relying heavily on volatile Western economies or becoming integrated with immediate sub-regional setups (e.g., India's Tamil Nadu state) poses severe existential risks. Diaspora-driven pressures in Western nations could trigger unilateral legal or trade sanctions on Sri Lanka regarding wartime accountability and internal state structures. • Strategic Imperatives for Sri Lanka: • Diversification: Reduce economic and strategic vulnerability to volatile Western corridors. • Key Global Partnerships: Preserve and expand strategic ties with global economic engines such as China (ICT/BPM, infrastructure, capital) and Russia (energy, diplomatic coverage) to act as vital growth drivers and sovereign counterweights. • Global South Engagement: Build multi-faceted relationships with non-aligned nations across Eurasia, Latin America, and Afro-Asia to secure trade resilience without conceding internal sovereignty. • Internal Pragmatism: Implement internal structural adjustments, such as provincial devolution (13th Amendment), to eliminate pretexts for external intervention while safeguarding core national integrity.

Economy-wide / Cross-sector
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🤝 Sri Lanka Business Mission Unlocks Trade & Investment Avenues in Australia

• Strategic Bilateral Outreach: The Ceylon Chamber's Sri Lanka–Australia–New Zealand Business Council (SLANZBC), in partnership with Sri Lanka's High Commission, concluded a high-level trade mission across Canberra, Melbourne, and Sydney to boost commercial ties and reciprocal trade. • Key Sectoral Focus: Discussions targeted cross-border expansion, institutional links, and commercial partnerships across high-growth sectors, particularly technology and AI, martech, venture capital, fisheries, and logistics. • Canberra Engagements: Held roundtables with Federal parliamentarians—including the Chair of the Australia–Sri Lanka Parliamentary Friendship Group—as well as Austrade, DFAT, and the Australian Chamber of Commerce and Industry to leverage diaspora networks and explore reciprocal trade missions. • Melbourne & Sydney Connections: Engaged Global Victoria, Invest Victoria, Food and Beverage Association, and CA Sri Lanka Australia Chapter to broaden market access for local industries and deepen institutional cooperation.

Economy-wide / Cross-sector
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NCE to Lead Business Delegation to India to Unlock Export Growth 📈

The National Chamber of Exporters of Sri Lanka (NCE) is organizing an trade delegation to New Delhi and Mumbai from Sept 24 to Oct 1, 2026, aimed at expanding market access and driving B2B partnerships with Indian industry leaders. • Trade Performance & Growth • Sri Lankan exports to India rose 17.2% YoY in 2025 to ~US$ 1.04 Bn (up from US$ 881.6 Mn in 2024). • Momentum accelerated in 1H 2026, with exports surging 36.16% YoY to US$ 688.47 Mn. • Trade relies heavily on the India-Sri Lanka Free Trade Agreement (ISFTA), which facilitated ~US$ 634 Mn (61.3%) of exports to India in 2025. • Focus Sectors & Opportunities • Key traditional & value-added sectors include tea, apparel & textiles, rubber & rubber products, coconut products, spices, food & beverages, gems & jewellery, electrical & electronic products, ICT/BPM, logistics, and manufacturing. • Strategic expansion focus extends to joint ventures, contract manufacturing, technology collaboration, supply chain integration, and distribution networks. • Key Institutional Engagements • Direct B2B access organized via major Indian chambers: FIEO and FICCI (New Delhi); MACCIA, AIAI, and ICIB (Mumbai). • Supported by trade officers from the Sri Lankan High Commission in New Delhi and Consulate General in Mumbai to lower entry barriers for local SMEs and emerging exporters.

Economy-wide / Cross-sector
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📈 Sri Lanka Pitching Expo 2027 to Australian Investors in Melbourne

• Event Overview: The Consulate General of Sri Lanka in Melbourne hosted a promotional event on 14 August 2026 to engage Victoria-based business leaders and importers for the flagship Sri Lanka Expo 2027. • Key Event Details: Expo 2027 will take place at the BMICH, Colombo, from 14–17 January 2027, serving as a platform to establish global partnerships and showcase export potential. • Sector Breakdown: Victoria-based entities represented sectors including food and beverage, logistics, financial services, tourism, and wellness. • Investment Focus: BOI highlighted key opportunities in industry, energy, and minerals, alongside investor incentives and a new digital investment platform. EDB pitched strategic access to regional markets via FTAs with India, Pakistan, Singapore, and Thailand. • Bilateral Issues: Importers highlighted delays in Plant Quarantine and phytosanitary certifications. EDB committed to convening a multi-agency meeting to streamline processes.

Economy-wide / Cross-sector
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📈 Foreign Diplomats Briefed on Sri Lanka Economic & Investment Summit 2026

• Event Details: The 26th edition of the Sri Lanka Economic and Investment Summit (SLEIS) 2026, organized by the Ceylon Chamber of Commerce, takes place on 12–13 October 2026 at Shangri-La Colombo. • Core Theme: Focusing on “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy.” • Diplomatic Outreach: Foreign diplomatic missions were briefed via the Ministry of Foreign Affairs to promote the summit to global business networks, investment agencies, and private sector partners. • Key Priorities: Conversations aim to move beyond short-term economic stabilization toward long-term competitiveness, structural economic reforms, trade, and sustainable growth. • Private Sector Role: Emphasized structured private sector participation as vital for converting diplomatic efforts into tangible trade and investment outcomes.

Economy-wide / Cross-sector
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🍍 Historic Milestone in Sri Lanka’s Fresh Fruit Exports to Pakistan

Sri Lanka achieved a major agricultural trade milestone on August 21, shipping its first-ever 20-foot container of fresh pineapples to Pakistan. The inaugural consignment was exported by C R Exports (Pvt) Ltd. • Market Potential & Trade Target: - Pakistan imports 2,000–5,000 MT of pineapples annually (~US$ 10 Mn value). - Sri Lanka generated ~US$ 2 Mn in pineapple export revenue in 2025. - Expands access under the Pakistan–Sri Lanka Free Trade Agreement (PSFTA) to help reach Sri Lanka's 2030 export goals. • Quality & Regulatory Compliance: - Shipments sourced from Good Agricultural Practices (GAP)-certified fields and registered with the Department of Agriculture (DoA). - Approved following an audit by Pakistan’s National Plant Protection Organization (NPPO) and technical clearance via Phytosanitary Certificates from Sri Lanka's National Plant Quarantine Service (NPQS). - Supported by the EDB, Department of Commerce, and diplomatic missions of both nations. • Future Expansion: - Sri Lanka aims to gain market share from major suppliers (Thailand and the Philippines) leveraging taste, quality, and proximity. - Plans are underway to expand into other fresh produce markets like avocados and oranges.

Agriculture, Plantations & Fisheries
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Ceylon Chamber Expands Middle East Trade Ties via MoUs with Qatar & Lebanon 📈

• Key Partnerships: The Ceylon Chamber of Commerce signed two strategic MoUs with the Qatar Sri Lanka Business Council (QSLBC) in Colombo and virtually with the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon (CCIA-BML). • Strategic Context: The QSLBC agreement coincides with Sri Lanka and Qatar celebrating 50 years of bilateral relations, targeting enhanced business-to-business engagement. • Framework & Impact: The agreements establish structured frameworks for economic data exchange, direct B2B contacts, and cross-border commercial opportunities to connect Sri Lankan businesses with overseas markets and foreign investment.

Professional & Business Services
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Oman & Sri Lanka Strengthen Investment Ties via Port City Colombo 📈

• Bilateral Engagement: Port City Colombo hosted a high-level Omani delegation led by H.E. Pankaj Khimji to establish a structured Oman–South Asia Investment and Trade Corridor and foster collaboration between Special Economic Zones (SEZs). • Trade Growth: Bilateral trade turnover expanded from US$ 118 Mn in 2018 to ~US$ 223 Mn in 2022, serving as a baseline for expanded commercial partnerships. • Investment Momentum: Port City Colombo has secured >US$ 1 Bn in investment between Q4 2025 and Q2 2026, with over 175 registered companies driving its Gulf region outreach.

Construction & Real Estate
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26th Exporters’ Forum Sets $36 Bn Target for 2030 📈

• Overall Targets & Milestones: Sri Lanka recorded a historic export value of US$ 17.3 Bn in 2025. The Sri Lanka Export Development Board (EDB) is targeting US$ 19 Bn for 2026, aiming for US$ 36 Bn by 2030 under the National Export Development Plan. • Policy & Growth Strategy: The government is focusing on increasing total export volume and simplifying policy obstacles. Focus is shifting toward integrating rural producers into global markets through proper packaging, technology, and market understanding. • Regional & Decentralized Support: Issues are being resolved directly with government institutions at provincial and district levels to support regional growth beyond Colombo. • Trade Facilitation: Unresolved industry challenges were addressed directly at the forum, with a significant number already routed through the Export Facilitation Task Force.

Economy-wide / Cross-sector
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Regulatory & Policy News

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⚖️ Supreme Court Begins Hearing on Proposed 22nd Amendment

• Overview: The Supreme Court of Sri Lanka starts hearing petitions today challenging the constitutionality of the government’s proposed 22nd Amendment (22A) to the Constitution. • Judicial Bench Composition: The case is under scrutiny by a five-member Supreme Court bench: - Chief Justice Preethi Padman Surasena (Bench Head) - Justice Achala Wengappuli - Justice Arjuna Obeysekera - Justice Sampath Abeykoon - Justice Gihan Kulatunga • Key Contests & Objections: - The proposed amendment focuses on extending the retirement age of higher-court judges. - Certain petitioners have requested the Chief Justice to recuse himself from the bench, while others have called for a full-bench hearing.

Professional & Business Services
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⚖️ Sri Lanka's Proposed 22nd Amendment: Reform vs. Judicial Independence Debate

The Government of Sri Lanka has introduced reforms under the proposed 22nd Amendment to the Constitution aimed at modernizing the judiciary, clearing massive case backlogs, and boosting system efficiency. • Key System Challenges & Context • Sri Lanka currently faces over 1.1 million pending court cases. • Historical political interference and institutional issues have long impacted governance and rule of law. • Historical corruption, political misuse of public funds, and weak judicial independence metrics highlight the urgent need for institutional integrity. • Key Proposed Judicial Reforms • Retirement Age Extension: Supreme Court judges extended from 65 to 67 years; Court of Appeal judges from 63 to 65 years; High Court judges from 61 to 63 years; other judges/magistrates set at 62. • Bench & Infrastructure Expansion: Expands Court of Appeal judges from 19 to 24, expands legal infrastructure to rural regions, and increases prison capacity. • Constitutional Oversight: Restructures the Constitutional Council to supervise independent commissions (e.g., Police, Audit, Human Rights). • Modernization & Tech: Retains experienced senior judges to accelerate adoption of AI and digital systems to streamline court backlogs and enhance efficiency. • Debate & Opposition Arguments • Opposition parties and the Bar Association of Sri Lanka (BASL) oppose extending judicial tenures, claiming it could compromise judicial independence. • Proponents argue the amendment provides a holistic, multidisciplinary approach that combines tenure extensions, digital transformation, and structural checks to clear backlogs efficiently.

Professional & Business Services
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🌿 World Bank Backs US$ 1 Mn Groundwork for Sri Lanka's Nature-Tourism Sector

Sri Lanka’s Cabinet has approved a US$ 1 Mn grant from the World Bank's Grant Facility for Project Preparation (GFPP) to fund 18 months of groundwork for a major nature-based tourism initiative. • Strategic Focus: The grant funds project preparation for the Tourism for Heritage Resilience Inclusion and Value-driven Employment (THRIVE) – Nature project, submitted by Environment Minister Dr. Dammika Patabendi. • Core Objective: Address the country's weak tourism revenue growth relative to rising visitor arrivals by shifting focus from sheer volume to high-value, quality experiences. • Key Interventions: Combines habitat restoration and conservation with tourism infrastructure upgrades across national parks, forests, and wetlands. • Synergy: Expands and strengthens existing programs under the World Bank-funded Ecosystem Conservation and Management Project to ensure long-term environmental sustainability alongside economic growth.

Tourism, Hospitality & Leisure
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🇱🇰 Govt Charts Roadmap for Mineral Sector Under Export-Driven Policy

The Sri Lankan government hosted high-level talks chaired by President Anura Kumara Dissanayake to develop a roadmap for the mineral sector in alignment with the National Mineral Policy 2026. • Strategic Focus: Transition from exporting unrefined raw materials to establishing domestic value addition and downstream processing to boost export revenues and aid national economic recovery. • Key Minerals Targeted: Prioritizing resources such as ilmenite, rutile, and high-purity quartz. • Policy & Reform Measures: • Addressing operational hurdles, bureaucracy, and delays in mining licensing approvals. • Enhancing institutional coordination and transparency to attract foreign and domestic investors. • Offering investor incentives, improving infrastructure, and promoting R&D for domestic manufacturing. • Industry & Environmental Concerns: • Past Challenges: Sector development previously stalled due to policy inconsistencies and weak regulatory oversight. • Sustainability: Stakeholders urge strict ecological safeguards to prevent coastal erosion and habitat destruction alongside commercial exploitation. <FollowUp label="Want me to track further updates on Sri Lanka's National Mineral Policy 2026?" query="Track further updates and news on Sri Lanka's National Mineral Policy 2026 and mineral export developments."/>

Manufacturing & Industrials
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🏠 Proposal to Restore Housing Loan Interest Relief for Budget 2027

Calls are growing for Sri Lanka to reinstate personal income tax relief on housing loan interest to ease severe affordability pressures on middle-income earners and support national growth. • Current Housing & Tax Pressures • The Central Bank’s Housing Construction Costs Index rose to 85.5 points in Q2 2026, up over 20% YoY, forcing buyers to take larger loans. • Top Personal Income Tax (APIT) rate of 36% applies to monthly incomes above Rs. 358,000, heavily impacting middle-income families servicing monthly loan interest of Rs. 180,000–200,000. • Current tax policy assesses gross earnings without deducting housing interest, eroding real disposable income. • Economic & Sector Impacts • Broad economic benefits predicted for key sectors: construction, building materials (cement, steel), banking & financial services, and professional services (architecture, legal, engineering). • Stimulates private sector activity to support target growth above 7% without requiring direct government capital spending. • Serves as a key talent retention policy to combat brain drain among skilled professionals in ICT/BPM, medical, and engineering fields. • Proposed Framework • Reintroduce targeted interest tax deductions previously available under past Inland Revenue Acts (most recently 2020–2022). • Cap relief strictly for primary personal residences funded via licensed financial institutions to prevent speculative investment. • Option to offer tax credits to banks passing lower interest rates directly to borrowers.

Economy-wide / Cross-sector
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⚖️ RAMIS Automation Denying Legitimate VAT Input Credits to Sri Lankan Businesses

• Key Issue: A discrepancy between the English and Sinhala texts of Section 22(6)(iv)(a) of the Value Added Tax (VAT) Act has been hard-coded into the Revenue Administration Management Information System (RAMIS), triggering automatic disallowance of valid input tax credits. • Legal Discrepancy: - English Text: Enforces a double-barreled deadline requiring the taxable period to end within 12 months of the invoice date AND the VAT return to be filed within the same 12 months. - Sinhala Text: Anchors eligibility strictly to the taxable period ending within 12 months of the invoice date, without enforcing a strict 12-month return filing window. - Constitutional Precedence: Under Article 23(1) of the Constitution of Sri Lanka, the Sinhala text legally prevails in cases of statutory inconsistency. • Impact on Businesses: RAMIS was built by an overseas vendor based on the English text. The automated rejection of input tax credits is causing: - Reduced refunds and inflated tax assessments. - Strained cash flow and trapped working capital. - Conversion of input credit into an unrecoverable cost, raising the overall cost of doing business. • Required Action: Administrative correction by the Department of Inland Revenue to reconfigure RAMIS rules to align with the authoritative Sinhala statutory text and prevent legal challenge.

Economy-wide / Cross-sector
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📈 Sri Lanka Customs Revenue & Operational Performance: Interim Review

• Macro Factors Drive Revenue: Customs revenue collection is primarily determined by external trade, fiscal, and economic variables—including exchange rates, global commodity prices (especially fuel), tax rate revisions, and trade agreements—rather than administrative efficiency alone. • Impact of Motor Vehicle Imports: Historical data shows vehicle imports generate a substantial portion of total revenue. Recent surges stem from pent-up demand following the reopening of vehicle imports, though this yield is expected to stabilize as market demand normalizes. • Role of Investment & Para-Tariffs: Structural fluctuations in imports by BOI enterprises, variations in para-tariffs (CESS, PAL), and policy-led duty waivers/exemptions directly alter the tax base independently of enforcement activities. • Currency & Price Effects: Fluctuations in international procurement costs and LKR/USD exchange rate movements automatically expand or contract the taxable LKR base for the same volume of physical imports. • Policy Recommendation: Evaluating performance based solely on fixed targets against actual collection produces a misleading assessment. An objective evaluation requires a Revenue Performance Attribution Analysis to separate policy and market-driven revenue from gains achieved through enforcement and operational efficiency.

Economy-wide / Cross-sector
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🚢 NTFF Urges Customs to Reconsider ICT Fee & Penalties

• Overall Compliance Cost Surge: The National Trade Facilitation Forum (NTFF) has appealed to Sri Lanka Customs regarding the new monthly ICT fee of Rs. 5,000 (Rs. 60,000/year) for 833 DGMS-registered maritime & logistics manifest reporters, effective 1 July 2026. • Financial Impact: Combined with the existing Rs. 12,000 annual licence fee, total fixed compliance costs for the shipping & logistics sector jump 6-fold from ~Rs. 10 Mn to ~Rs. 60 Mn annually—an added ~Rs. 50 Mn per annum burden with no transition period. • Non-Recoverable Overhead: Applied under the mandatory ASYHUB system, the flat charge cannot be recovered as a disbursement due to lack of valid Customs receipts, burdening service providers as a direct overhead and raising landed import costs. • Manifest Amendment Penalties: Existing penalties reach up to Rs. 100,000 per amendment based on 2013 rules. NTFF urges adoption of the 2018 joint-association proposal to cap major post-registration penalties at Rs. 25,000. • Key Proposals to Customs: • Transition from a flat fee to a fair per-manifest/per-transaction charge aligned with WTO TFA cost-of-service principles. • Issue official receipts to enable cost recovery from shippers and consignees. • Implement the reduced 2018 manifest amendment penalty framework and consult trade associations before future changes.

Transport, Logistics & Infrastructure
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🇱🇰 Cabinet Approves 10-Year TVET Roadmap to Tackle Skills Mismatch

The Cabinet of Ministers has approved the Strategic Framework for Technical and Vocational Education and Training (TVET) 2026–2035 to align vocational training with domestic and international labor market demands. • Strategic Framework (2026–2035): Formulated with technical assistance from the Asian Development Bank (ADB) to serve as national strategic guidelines. • Skills Development System Transformation Program (2027–2031): Acts as the principal implementation phase to restructure governance, upgrade infrastructure, and enhance education quality. • Key Priorities: - Strengthen the Advanced Level vocational stream and expand equitable access. - Boost industry participation and accelerate digital transformation. - Establish sustainable financing mechanisms with support from development partners. • Governance: Proposal submitted by Prime Minister Dr. Harini Amarasuriya in her capacity as Minister of Education, Higher Education, and Vocational Education.

Education & Training
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🌱 AlchemX Global Named Official ISSB Training Partner in Sri Lanka

AlchemX Global, co-founded by Chamika Perera and Prashani Illangasekera, has been appointed as an official ISSB Training Partner for Sri Lanka. The status enables the firm to deliver training on applying IFRS Sustainability Disclosure Standards using content developed directly by the IFRS Foundation. • Partnership Details: AlchemX becomes one of the first organisations in Sri Lanka to earn this designation. The firm will provide IFRS-developed learning materials to build technical capability and help local enterprises prepare high-quality sustainability-related financial disclosures. • Services & Expertise: The professional services firm combines expertise across finance, ESG, and corporate reporting. Offerings cover accounting advisory, ESG strategy, annual reports, sustainability disclosure implementation, and reporting integration tailored to organisation scale. • Market Impact: The move supports Sri Lankan businesses in aligning with evolving global sustainability standards as disclosure requirements gain prominence both locally and internationally.

Professional & Business Services
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📈 Sri Lanka Sets Jan 1, 2027 for PDPA Enforcement

• Key Date & Scope: Key provisions of the Personal Data Protection Act (PDPA) will become fully operational on January 1, 2027, setting a strict 30-day statutory window for organisations to fulfill Data Subject Requests (DSRs). • Critical Challenges: Industry leaders at the Data Privacy and Protection Summit highlighted five major hurdles: fragmented data silos, the lack of centralised intake protocols, the "IT-only" compliance misconception, unstructured data retention, and outdated consent models. • The R.E.A.D.Y. Playbook: Experts urged businesses to establish single-intake rails, empower Data Protection Officers (DPOs), audit and map records of processing, deputise third-party vendors, and train all employees to handle statutory withdrawal rights.

Technology & Digital Services
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🤝 Sri Lanka to Sign Prisoner Transfer Agreement with Poland 🏛️

The Cabinet of Ministers has approved entering into a bilateral prisoner transfer agreement with the Republic of Poland, facilitating the repatriation of convicted citizens to serve their sentences in their respective home countries. • Key Objective: Supports the rehabilitation and reintegration of convicted nationals into their home societies while serving the remainder of their prison sentences. • Legal Framework: Executed under Sri Lanka's Transfer of Offenders Act No. 5 of 1995, which enables reciprocal repatriation of foreign nationals sentenced in Sri Lanka and Sri Lankans imprisoned abroad. • Government Submission: The formal proposal was presented to the Cabinet by Justice and National Integration Minister Harshana Nanayakkara.

Other
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Politics & Government Impact

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⚖️ Ex-Finance Minister Ravi Karunanayake Granted Bail in NLB Corruption Case

• Case Overview: NDF MP and former Finance Minister Ravi Karunanayake was arrested by CIABOC and granted bail by Colombo Additional Magistrate Liyan Warushavithana. Released on two sureties of Rs. 1 million each, with a travel ban imposed. • Allegations & Impact: Charges filed under Section 70 of the Bribery Act regarding the illegal recruitment of three contract employees (two Coordinating Officers, one Management Assistant) using National Lotteries Board (NLB) funds during his tenure (Jan 2015 – May 2017). CIABOC alleges the recruits performed no NLB duties and were instead deployed for personal political activities, causing a financial loss to the state. • Key Proceedings & Submissions: • CIABOC sought remand citing non-compliance after four skipped notices, evasion, and risks of witness tampering alongside the first suspect (ex-NLB Chairman Shyamala Perera). • Defense Counsel cited severe health issues (5 cardiac stents, diabetes, cellulitis) and noted the co-suspect was already on bail, leading to the court's release order.

Economy-wide / Cross-sector
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Call for Accountability: Addressing Enforced Disappearances in Sri Lanka 🕊️

• National Context & Figures: • Credible international sources estimate between 60,000 to 100,000 enforced disappearances in Sri Lanka since 1971. • Sri Lankan commissions of inquiry record 43,000 cases, while Amnesty International estimates 30,000 to 60,000 deaths/disappearances during the 1987–1990 period. • Key Regional & Forensic Incidents: • Excavation at the Chemmani mass grave in the North revealed remains of over 400 individuals, including children. • The country currently lacks the forensic infrastructure and systematic DNA database required for victim identification. • Legal & Policy Framework: • Signed the International Convention for Protection of All Persons from Enforced Disappearance (ratified via Parliament act in 2016). • Under international and domestic law, unresolved disappearances remain active, ongoing violations requiring credible investigation and prosecution, rather than closure through unfulfilled promises.

Economy-wide / Cross-sector
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🤝 Sri Lanka and US Launch Atlas Angel II Bilateral Exercise 📈

• Overall Bilateral Cooperation: Sri Lanka and the US have officially kicked off Atlas Angel II, the second edition of their joint military training exercise, running from August 31 to September 4, 2026. The program aims to strengthen regional readiness, safeguard livelihoods, and contribute to security across the Indo-Pacific. • Scope & Focus Areas: The 5-day exercise brings together defense experts for joint training in key national defense and emergency response sectors: • Disaster response & landslide management • C-130 aircraft maintenance & aviation operations • Urban search and rescue, construction engineering, and incident command systems • Chemical, biological, radiological, nuclear, and explosive hazards • Participating Forces & Strategic Ties: • Participants include the Sri Lanka Air Force, US Pacific Air Forces (PACAF), and the Montana National Guard (led by Brig. Gen. Trace Thomas and Brig. Gen. Renea Dorvall). • International observers from the UK and Bangladesh are also attending. • The drill builds on the US State Partnership Program established in 2021 and a November 2025 MOU expanding cooperation with the US Coast Guard District 13 across maritime security and defense infrastructure.

Economy-wide / Cross-sector
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🏛️ CII Conducts Local Government Governance Training for ITAK Representatives in North

• Overview: The Coalition for Inclusive Impact (CII), upon request by the Ilankai Tamil Arasu Kachchi (ITAK), conducted a capacity-building program for local government representatives across Jaffna, Kilinochchi, Vavuniya, Mannar, and Mullaitivu. • Participants: Mayors, Chairpersons, Vice-Chairpersons, and Councillors from Northern local authorities, alongside senior ITAK leadership including C.V.K. Sivagnanam, M.A. Sumanthiran, and Shanakiyan Rasamanickam. • Core Modules & Capacity Enhancement: • Financial sustainability and revenue generation strategies. • Preparation and implementation of municipal by-laws. • Administrative procedures, statutory powers, and council responsibilities. • Planning & project implementation frameworks. • Aligning party ideology with transparent, accountable, and people-centered administration. • Resource Experts: Legal and operational guidance delivered by University of Jaffna Department of Law Lecturer Kosalai Mathan and local government federations representative Pradeep. • Strategic Impact: Aimed at improving institutional efficiency, administrative transparency, and enabling Northern local councils to fully utilize devolved local powers.

Education & Training
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🗳️ Govt. Aims to Hold Provincial Council Elections at Earliest Opportunity

• Government Commitment & Funding: Cabinet Spokesperson Minister Dr. Nalinda Jayatissa confirmed that the Government intends to conduct long-delayed Provincial Council elections as soon as possible, with funds already allocated. • Legal & Delimitation Framework: Elections depend on Parliament enacting necessary legislation and completing the electoral boundary delimitation process within this year. A parliamentary committee is currently handling the matter. • Clarification on Rumors: Rejected reports that polls would be bypassed, emphasizing that legal provisions must be established before elections can proceed.

Economy-wide / Cross-sector
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📈 Cabinet Nod for Inter-Ministerial Standing Committee on Human Rights

The Cabinet of Ministers has approved the establishment of a permanent Inter-Ministerial Standing Committee on Human Rights to strengthen Sri Lanka's domestic follow-up, coordination, and international reporting mechanisms. • Key Mandate & Scope - Establishes a multi-stakeholder framework bringing together relevant Government ministries, departments, and state institutions. - Designed to systematically monitor progress, coordinate domestic human rights initiatives, and meet international reporting commitments. - Supports institutional continuity in Sri Lanka's engagement with global human rights bodies. • International Framework & UN Engagement - Sri Lanka is a state party to 9 core UN international human rights treaties and 5 optional protocols. - Following its 4th Universal Periodic Review (UPR) cycle in 2023, the committee will coordinate the submission of a voluntary mid-term report prior to the next review cycle. • Governance & Sponsorship - Joint resolution submitted by Foreign Affairs, Foreign Employment & Tourism Minister Vijitha Herath and Justice & National Integration Minister Harshana Nanayakkara. - Confirmed by Cabinet Spokesperson Dr. Nalinda Jayatissa to ensure systematic follow-up across state channels.

Economy-wide / Cross-sector
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🤝 Sri Lanka Pledges US$ 1 Mn Humanitarian Aid to Nepal

• Financial Support: President Anura Kumara Dissanayake directed the Government to extend a financial contribution of US$ 1 Mn in immediate relief and humanitarian assistance to Nepal following devastating floods and landslides. • Regional Solidarity: The assistance underscores the longstanding bilateral relationship and regional cooperation between both nations during natural disaster recovery efforts. • Diplomatic Engagement: Foreign Minister Vijitha Herath conveyed condolences and support directly to Nepalese Foreign Minister Shisir Khanal, with Sri Lanka remaining committed to further relief engagement.

Economy-wide / Cross-sector
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🇱🇰 Sri Lanka Will Not Allow Ethnic or Religious Conflicts to Emerge: President

• Key Statement: President Anura Kumara Dissanayake affirmed the Government’s strong commitment to establishing a peaceful and compassionate society across Sri Lanka. • Policy Stance: The administration will explicitly prevent the recurrence of any ethnic or religious friction in the country to maintain national stability.

Economy-wide / Cross-sector
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🇱🇰 Sri Lanka Labour Market Mismatch & Policy Choices 📊

A recent debate over raising the minimum age for three-wheeler drivers highlights deeper issues in Sri Lanka's labour market, emphasizing incentives over restrictions. • Labour Market Stats (Q1 2026): - Overall Unemployment: 3.7% - Labour Force Participation: 49.2% - Youth Unemployment (Ages 15–24): 16.1% - Unemployment (Ages 25–29): 11.8% - Educated Unemployment (A me/A/L+): 6.5% • Key Insights: - Drivers prefer three-wheelers for income, flexibility, and independence over factory or construction jobs. - IPS research highlights that driving occupation choices must be respected; sectors facing vacancies in manufacturing or construction need to improve wages and working conditions to attract youth. - Structural economic reform requires transparent policy, evidence-based trade-offs, and addressing low productivity rather than limiting occupational freedom.

Economy-wide / Cross-sector
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⚖️ BASL Raises "Gratification" & Conflict-of-Interest Concerns Over 22nd Amendment

The Bar Association of Sri Lanka (BASL) has challenged the constitutionality of the proposed 22nd Amendment in the Supreme Court, questioning whether extending the tenure of sitting superior court judges could constitute a "gratification" under Anti-Corruption Act No. 9 of 2023. • Core Legal Concerns: • Anti-Corruption Law: Under Section 93(b), judges soliciting or accepting any gratification as an inducement or reward face fines up to Rs. 1 Mn and up to 7 years of rigorous imprisonment. BASL highlights public perception risks regarding whether the extension and associated benefits act as a gratification. • Conflict of Interest: Sitting Supreme Court judges determining the Bill's constitutionality would directly benefit from the proposed tenure extension. • Judicial Independence: BASL argues the Bill impacts the sovereignty of the people and judicial independence, seeking a ruling that it requires approval via a public referendum. • Key Provisions of Proposed 22nd Amendment: • Supreme Court: Increases retirement age from 65 to 67 years. • Court of Appeal: Increases retirement age from 63 to 65 years, and expands bench size from 19 to 24 judges (+5 additional judges). • Chief Justice: Retirement set at age 67 or upon completing 6 years in office, whichever comes first. • Action Requested: BASL has requested the Chief Justice to constitute a Full Bench of all sitting Supreme Court judges to hear the petition due to the urgent and grave constitutional implications involved.

Professional & Business Services
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🤝 New US Ambassador Eric Meyer Presents Credentials to President Dissanayake

• Diplomatic Formalities: Eric Meyer officially assumed his duties as the 29th US Ambassador to Sri Lanka after presenting his credentials to President Anura Kumara Dissanayake. He arrived in Colombo on August 22. • Key Focus Areas: The partnership marks over 78 years of bilateral ties. Priorities include unlocking new economic opportunities, expanding trade & investment, deepening security cooperation, and supporting a free and prosperous Indo-Pacific region. • Background: Prior to this posting, Ambassador Meyer served as Chargé d’Affaires, a.i., at the US Mission to Norway and Senior Bureau Official for South and Central Asian Affairs at the US Department of State.

Economy-wide / Cross-sector
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📊 Sri Lanka Ministerial Portfolio Changes Drop ~75% Under President AKD

Government institutional instability caused by frequent cabinet reshuffles fell significantly during the first year of President Anura Kumara Dissanayake’s tenure compared to his immediate predecessors, according to data from the Lanka Data Foundation. • Overall Figures (First-Year Cabinet Reshuffles) • Anura Kumara Dissanayake (Nov 2024–Nov 2025): 37 government departments experienced ministerial changes. • Ranil Wickremesinghe (July 2022–July 2023): 91 departments experienced ministerial changes. • Gotabaya Rajapaksa (Aug 2020–Aug 2021): 90 departments experienced ministerial changes. • Key Institutional Shifts & Volatility • Highest Instability: Under Gotabaya Rajapaksa, 40 departments had three different ministers within year one, while 3 departments changed hands four times. • Major Portfolio Reorientations: • Under Ranil Wickremesinghe, 22 departments broke away from the manufacturing & industrial domain (Ministry of Industries) into two state ministries in July 2022. • Under Gotabaya Rajapaksa, the largest single realignment involved 18 departments under the State Minister of National Security, Home Affairs and Disaster Management. • Under Anura Kumara Dissanayake, the largest shift involved 19 departments moving from the Minister of infrastructure & housing (Urban Development, Construction and Housing) to the Minister of Ports and Civil Aviation. • Context: Analysis compares the first year of each administration following parliamentary consolidation, highlighting increased governance stability and reduced administrative churn in state operations.

Economy-wide / Cross-sector
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Product & Service Launches / Business Expansions

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Toyota Lanka Expands Footprint in Kurunegala 📈

Toyota Lanka Ltd. marked a major milestone in its expansion strategy with the opening of a new Body & Paint Center and the groundbreaking of a general service facility in Kurunegala. • Network Expansion Goals: The new additions align with Toyota Lanka's broader strategic roadmap to establish 30 facilities across Sri Lanka by the end of 2026. • After-Sales Capabilities & Track Record: • Completed over 3 million vehicle services across Sri Lanka. • Distributed over Rs. 200 Bn in genuine spare parts nationwide. • Delivered over 300,000 body and paint repair services to date. • Community & National Development: Beyond mobility, the company actively collaborates with the Ministry of Education to support technical skills development among young Sri Lankans, driving local workforce capabilities.

Manufacturing & Industrials
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Seylan Bank Empowers Southern Farmers via SME Scale-Up Program 🌾

• Program Overview: Seylan Bank conducted an SME Scale-Up Program at Hotel Niwahana in Tissamaharama, bringing together nearly 200 farmers from across the Southern Province. The initiative focused on financial management, business upscaling, productivity improvement, and adopting digital banking solutions. • Key Concessionary Financing Schemes: - Seylan Athwela (FSSP): Offers up to Rs. 5 Mn in funding at a 5% annual concessionary interest rate for modernizing agriculture operations. - National Credit Relief and Credit Support (NCRCS): Provides 6% annual interest financing for target crops including paddy, maize, vegetables, and potatoes. • Economic Context: The initiative aims to strengthen agriculture & agribusiness SMEs, enhancing rural livelihoods, business efficiency, and sustainable economic growth.

Banking & Financial Services
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🤟 Sri Lanka’s First Deaf Tourism Export: Ceylon Deaf Adventures Signs Global Pact

Negombo-based inclusive travel enterprise Ceylon Deaf Adventures (CDA) has signed a groundbreaking Memorandum of Understanding with Germany’s DeafVentures, marking Sri Lanka's first formal cross-border Deaf tourism partnership. Key details of the milestone: • First-Mover Advantage: Born out of Negombo's Lilly Palace Villa—a homestay that has served 1,000+ guests from over 15 countries since 2017—CDA is currently the only dedicated inbound Deaf tourism operator in South Asia. • Strategic Market Expansion: The MOU creates a structured framework to jointly develop, market, and operate sign-language guided travel packages, tapping directly into Germany as a key source market. • Niche Economic Impact: Unlocks an unaddressed global travel segment with high loyalty, converting accessibility into a competitive, revenue-generating niche tourism export for Sri Lanka.

Tourism, Hospitality & Leisure
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Cabinet Clears Rs. 1.24 Bn BIA Travel Counter Contracts 📈

• Overall Deal: The Cabinet approved awarding contracts worth over Rs. 1.24 Bn to operate six tourist service counters at the Bandaranaike International Airport (BIA) arrival lobby in Katunayake for a three-year period. • Procurement: Initiated by Airport and Aviation Services (Sri Lanka) Ltd. via a National Competitive Bidding Procedure, attracting 19 bids total. • Contract Breakdown: • Casons Travels Ltd.: Rs. 251.03 Mn • Explore Vacations and Travels Ltd.: Rs. 234.73 Mn • JNW Lanka Tours: Rs. 209.67 Mn • Avawia Tours Ltd.: Rs. 189.66 Mn • Ceylon Arrivals Ltd.: Rs. 183.60 Mn • Ayubowan Tours and Travels Ltd.: Rs. 171.53 Mn • Economic Context: Aimed at delivering essential services to incoming travelers, boosting visitor experience, and supporting national tourism revenue.

Tourism, Hospitality & Leisure
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🤝 Deep Tec & CCECC Partner for Sustainable Water Infrastructure

Sri Lankan engineering solutions firm Deep Tec Engineering Ltd. has signed a Memorandum of Understanding (MoU) with China Civil Engineering Construction Corporation (CCECC) to advance solar-powered water, sanitation, and environmental infrastructure in Sri Lanka. • Strategic Partnership Details • Deep Tec appointed as CCECC’s Authorised Local Engineering and Business Partner. • Focus areas include solar-powered sewage treatment systems, drinking water systems, and clean-water purification infrastructure. • Combines CCECC’s global engineering scale with Deep Tec’s local implementation capabilities. • Company Operational Footprint • Water & Agriculture: Deep Tec accounts for ~24% of rural water pumping demand in Sri Lanka, completing over 5,000 projects across 25 districts and supporting 50,000+ farmers. • Renewables & Infrastructure: Over 13 MW of grid-connected solar PV capacity delivered, alongside institutional projects valued at >US$ 3 million for the World Bank, UN, and World Vision. Delivered core water and fire safety infrastructure for Port City Colombo. • Expansion Strategy: Broadens Deep Tec's scope beyond solar pumping into large-scale environmental infrastructure, while aligning with its AgriTech Spark initiative with IESL YMS to boost national agritech innovation.

Manufacturing & Industrials
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📈 JKH & Salesforce Expand Partnership to Boost Customer Experience

• Overview: John Keells Holdings PLC (JKH) has expanded its collaboration with Salesforce to accelerate customer experience transformation across its key business sectors in Sri Lanka. • Retail Sector: • Keells Super leverages Salesforce to power its Keells Nexus loyalty program, serving over 2 million members. • Integrates Salesforce Loyalty Management, Data 360, Marketing Automation, MuleSoft, and Agentforce Service to deliver personalized, data-driven customer engagement. • Automotive Sector: • John Keells CG Auto, authorized distributor for BYD passenger vehicles, adopts Salesforce Automotive Cloud. • Streamlines operations and unifies customer data across pre-sales, sales, and after-sales service to support New Energy Vehicle adoption. • Strategic Focus: Uses data, AI, and automation to shift toward an experience-driven economy, establishing a scalable model across JKH’s enterprise footprint.

Technology & Digital Services
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🤝 Huawei and HP Sign Global Patent Licensing Agreement

• Agreement Details: Huawei and HP Inc. have signed a multiyear global patent cross-licensing agreement covering key intellectual property, including specific Huawei WiFi patents. • Industry Context: The deal highlights mutual recognition of technology assets—acknowledging Huawei's core innovations in ICT standardized technologies and HP Inc.'s global market position in personal computing and peripheral hardware. • Economic Relevance: Demonstrates ongoing international collaboration and technology sharing within the global ICT/BPM and electronics hardware ecosystem, reinforcing the value of intellectual property frameworks for tech equipment manufacturers.

Technology & Digital Services
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📈 SLT-MOBITEL Launches 'CONNECT' Bundled Digital Package

National ICT provider SLT-MOBITEL has introduced 'SLT-MOBITEL CONNECT', an all-in-one internet, voice, and entertainment bundle targeting Sri Lankan households and mobile users. • Key Package Details: Combined Package: Priced at Rs. 10,000 per month (excluding government taxes). Home Offer (Rs. 8,500/month): Includes fibre broadband with unlimited data (100/50 Mbps), 50GB 4G data, unlimited midnight data (12 AM–7 AM), unlimited voice calls, and over 90 PeoTV channels. Equipment includes a one-time provision of an ONT and Fixed Wireless Access router. Mobile Offer (Rs. 1,500/month): Includes 30GB data, unlimited voice calls, and 1,000 SMS. Data and voice benefits can be shared across up to 5 free SIMs. • National Context: The integrated offering expands Sri Lanka's ICT/BPM and digital communications landscape by enhancing data mobility, remote work, and home connectivity through unified service billing.

Telecommunications & Media
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🚀 AI Academy & Tomorrow University Bring German Degrees to Colombo

• Partnership Overview: Sri Lanka's AI Academy has partnered with Berlin-based Tomorrow University of Applied Sciences to offer state-recognized German degrees directly from Colombo. • Programs Offered: • BSc in Applied AI: FIBAA-accredited bachelor's degree focused on practical, challenge-based learning. • MBA in AI & Technological Transformation: ACQUIN-accredited qualification designed for working professionals seeking business leadership combined with AI skills. • Work-Study Incubator Model: • Students work on paid, real business briefs from day one for local and international entities while earning their degrees. • Enables school leavers and working professionals to gain real-world experience, build portfolios, and earn without having to relocate abroad. • Industry & National Impact: • Integrates applied AI learning directly into key national economic sectors including apparel & textiles, tea, tourism, logistics, manufacturing, agriculture, and ICT/BPM startups. • Supports Sri Lanka’s industrial diversification, entrepreneurship, and workforce upskilling by producing industry-ready graduates rather than theoretical-only talent. • Key Highlights: • Features challenge-based learning, student-led incubator business development, mentorship, and participation in the annual APEX Summit. • Every graduate delivers a practical AI project serving an underserved community as a mandatory capstone.

Education & Training
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Evolution Auto and Sampath Bank Partner to Accelerate Sri Lanka’s EV Adoption ⚡🚘

Evolution Auto (Pvt) Ltd has partnered with Sampath Bank via a Memorandum of Understanding (MOU) to make electric vehicle (EV) ownership more accessible across Sri Lanka. The collaboration pairs tailored financial packages with a expanding multi-brand EV portfolio. • Strategic Partnership Overview - Automotive & Financial Synergies: Combines Evolution Auto's EV market portfolio with Sampath Bank's customized credit and financing structures. - Target Demographic: Aims to serve individual buyers, families, and commercial entities looking for sustainable fleet management solutions. - Core Objective: Addresses financial accessibility—a major barrier in the national shift towards clean transport—to transition EV adoption from a niche option into mainstream mobility. • Brand Portfolio & Sector Coverage - Represented EV Brands: Includes globally recognized names such as AVATR, IM Motors, XPENG, Riddara, and KYC. - Vehicle Categories: Spans premium passenger cars, utility-focused models, and commercial electric vehicles. • National Context & Market Relevance - Aligns with Sri Lanka's broader movement toward green mobility, lower vehicle operating costs, and reduced long-term carbon emissions. - Helps address upfront capital barriers by stream-lining vehicle acquisition alongside dedicated banking solutions. <ElicitationsGroup message="To explore more context on Sri Lanka's evolving green mobility landscape:"> <Elicitation label="Analyze Sri Lanka's broader EV market trends and policy landscape" query="Provide an analysis of Sri Lanka's electric vehicle market, import regulations, and financing trends in 2026."/> <Elicitation label="Compare corporate leasing options for commercial EVs" query="What are the key financial structures and benefits for Sri Lankan businesses adopting commercial EV fleets?"/> </ElicitationsGroup>

Banking & Financial Services
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📈 Salesforce Expands Sri Lanka Footprint with First Innovation Day

• Event Focus: Salesforce hosted its inaugural Innovation Day in Colombo, gathering over 200 business leaders and technology professionals to accelerate trusted Artificial Intelligence (AI) and digital transformation adoption. • Key Sectors: Driving digital shifts across retail, pharmaceuticals, consumer goods, and diversified enterprises, featuring leadership insights from major local entities including John Keells Holdings and tea producer Dilmah Ceylon Tea Company. • Ecosystem Growth: Broadening long-term investments through localized digital skills training via Trailhead, the expansion of its Startup Program in January 2026, and partnerships with firms like Deloitte and Altria Consulting to help Sri Lankan organizations transition from AI ambition to execution.

Technology & Digital Services
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📈 Commercial Bank & Axonect Showcase Global Fintech First at DTW Ignite 2026

Commercial Bank of Ceylon has partnered with Axonect (formerly Axiata Digital Labs) to feature the world’s first deployment of Open Digital Architecture (ODA) in fintech at TM Forum’s DTW Ignite 2026 in Copenhagen. • Key Operational & Tech Impact: • Adapted telecom-based ODA to modernise legacy banking systems. • Achieved cloud-like agility, enhanced operational efficiency, and reduced cost footprint while keeping strict data governance and regulatory compliance. • Supported one of the fastest global rollouts of Google Pay, real-time PayPal cross-border remittance clearing, and an active API-driven ecosystem with near-perfect availability. • Future Outlook: • Moving towards agentic banking—an AI-driven, highly autonomous operating model supported by robust data sovereignty frameworks. • Aims to expand open finance integration, deploy AI across key banking functions, and scale digital services globally. • Institutional Profile: • Sri Lanka's largest private sector lender and first bank to surpass a market capitalisation of US$ 1 Bn. • Ranked No. 1 Sri Lankan bank in The Banker Top 1000 World Banks 2026, operating over 270 domestic branches and international units in Bangladesh, Maldives, Myanmar, and Dubai.

Banking & Financial Services
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Appointments & Executive Moves

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👔 Abans Finance Appoints Lakshman Gunasekara as New CEO

• Leadership Transition: Abans Finance PLC appointed Lakshman Gunasekara as Chief Executive Officer, effective 24 August 2026. • Industry Expertise: Gunasekara brings over 20 years of experience in Sri Lanka's financial services sector, specializing in operational leadership, strategic management, credit management, and risk management. • Career Background: He previously served as AGM at Lanka Orix Leasing Company (LOLC) from 2007 to 2019 before joining Abans Finance PLC as Head of Recoveries in September 2019. • Academic Qualifications: Holds an MBA from the University of Wolverhampton and a Bachelor’s degree specializing in Real Estate from the University of Sri Jayewardenepura. • Strategic Focus: His leadership aims to strengthen risk management, operational efficiency, and sustainable growth within the company.

Banking & Financial Services
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📈 Digital Mobility Solutions Lanka Appoints Priyanthini McNair to Board

• New Leadership: Digital Mobility Solutions Lanka PLC (PickMe) has appointed Priyanthini McNair as an Independent Non-Executive Director to strengthen its board governance and strategic growth. • Executive Profile: McNair brings over 25 years of global banking and corporate finance experience, having previously served as Global Co-Head of Corporate Coverage and Senior Managing Director at Emirates NBD Group, managing a multi-billion-dollar international portfolio. • Global Track Record: Her career includes over two decades at HSBC across major financial hubs including the UK, Hong Kong, MENAT, India, and Singapore, alongside early career audit training at EY and PwC in Sri Lanka. • Key Expertise: She holds CFA, CA Sri Lanka, and CIMA qualifications, offering high-level expertise in capital allocation, risk governance, ESG-aligned financing, and business strategy relevant to modern corporate governance.

Technology & Digital Services
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🏢 Leadership Changes at CT Land Development: Joseph Page Named Chairman, Indira Malwatte Joins Board

Sri Lanka’s real estate and property development sector saw key board appointments at CT Land Development PLC, effective 21 August 2026: • New Non-Executive Chairman: Joseph Page assumes the role, bringing over 40 years of private sector management expertise within the CT Holdings Group. • Corporate Background: Page currently serves on the boards of C T Holdings PLC, Cargills (Ceylon) PLC, Kotmale Holdings PLC, and several group subsidiaries spanning the real estate and asset management sectors. • New Independent Non-Executive Director: Indira Malwatte, former and first female Chairperson of the Sri Lanka Export Development Board (EDB), joins the board. • Strategic Expertise: Malwatte brings over 40 years of international experience across export promotion, agriculture, SME development, and supply chain management, backed by previous leadership roles in international projects with the World Bank, GIZ, and JETRO. • Current Directorships: She also serves as Chairman of Samson International PLC and holds directorships at Cargills (Ceylon) PLC, Kotmale Holdings PLC, and Lanka Shipping and Logistics Ltd. The appointments reinforce board governance and strategic leadership for the group's property development interests.

Construction & Real Estate
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👔 Jonathan Alles Appointed Chairman of Singer Finance

• Executive Transition: Seasoned banking professional Jonathan Alles has been appointed as the Chairman of Singer Finance (Lanka) PLC, effective 12 September 2026. He previously joined the board on 5 March 2026. • Leadership Background: Alles brings over 37 years of experience in the banking and financial services sectors. He was formerly the MD/CEO of Hatton National Bank PLC (HNB) and served as Chairman of the Sri Lanka Banks Association and Asian Bankers Association. • Industry Experience: He has held key leadership positions across several major financial and corporate entities, including HNB Finance PLC, Acuity Partners, and Lanka Clear Ltd, alongside international stints with HSBC and National Bank of Abu Dhabi. • Qualifications: Holds a First Class MBA in Finance from the University of Stirling, UK, and is an Associate Member of the Institute of Bankers of Sri Lanka.

Banking & Financial Services
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🤝 New Chinese Ambassador Wei Huaxiang Assumes Office in Sri Lanka

Wei Huaxiang has officially assumed duties as the new Chinese Ambassador to Sri Lanka, presenting credentials to President Anura Kumara Dissanayake and replacing outgoing envoy Qi Zhenhong. • Diplomatic Focus: Courtesy call paid on Foreign Minister Vijitha Herath, with discussions focused on strengthening long-standing bilateral relations and expanding cooperation across multiple sectors. • Economic Expertise: Envoy brings an extensive background in economic administration, international trade regulation, and global commercial policy from China’s Ministry of Commerce and Shandong Provincial Government. • Key Portfolios: Served as Consul General in Ho Chi Minh City, Vietnam (2022–2025), overseeing major trade, investment, and cross-border economic portfolios; holds a doctorate with expertise in WTO integration, digital trade infrastructure, and balance-of-payments policies. • Sri Lanka Context: The appointment comes at a crucial period for bilateral economic ties, foreign direct investment (FDI), trade policy alignment, and debt restructuring discussions.

Economy-wide / Cross-sector
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👔 Dr. Prasad Samarasinghe Appointed Chairman of HNB Finance

HNB Finance PLC has announced the appointment of Dr. Prasad Samarasinghe as Chairman, effective 28 August 2026. He succeeds Rajive Dissanayake, who is retiring following nine years of service. • Corporate Leadership Change: Dr. Samarasinghe joined the board of HNB Finance in February 2024 as a Nominee Director of Hatton National Bank PLC, overseeing audit, strategy, technology, and risk management. • Executive Track Record: Brings nearly 30 years of experience across the banking, telecommunications, ICT/BPM, and corporate governance sectors. He currently serves on the board of Hatton National Bank PLC and holds directorships at Hayleys Fibre PLC and Chemanex PLC. • Strategic Focus: His background in cybersecurity, digital infrastructure, and regulatory compliance will guide the company through an evolving landscape of digital transformation and financial sector risk management.

Banking & Financial Services
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🏛️ Chandana Guniyangoda Assumes Duties as New Chairman of People’s Bank

• Milestone Governance Reform: Marks a key development in Sri Lanka's state-owned banking sector as Guniyangoda becomes the first Chairman of a state-owned licensed commercial bank appointed as an Independent Non-Executive Director under the IMF-supported reform framework (CBSL Banking Act Directions No. 05 of 2024). • Leadership & Background: A Fellow of CA Sri Lanka (FCA) and CMA Sri Lanka (FCMA) with over 28 years of experience, including 19 years in commercial banking. • Key Experience: Former roles include Assistant Vice President at NDB Bank, ALCO Officer at Sampath Bank, and Group CFO of MG Group. He also holds positions as Independent Chairman of People’s Insurance PLC and Board Member at New Vithanakande Tea Factory Ltd.

Banking & Financial Services
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🏦 Seylan Bank Appoints Krishan Thilakaratne as Deputy Chairman

Seylan Bank PLC has named Non-Executive Director Krishan Thilakaratne as the Deputy Chairman of its Board, effective 17 August 2026. • Leadership & Career Track: - Joined Seylan Bank in 1990 as a Banking Assistant before moving to LOLC Group in 1995. - Brings over 31 years of experience across management, credit, factoring, portfolio management, and Islamic finance. - Currently serves as Director/CEO of LOLC Finance PLC and is on the Senior Management Team of LOLC Holdings PLC. • Governance & Industry Footprint: - Has served on the Seylan Bank Board as a Non-Executive Director since 2018. - Former Chairman of the Finance Houses Association of Sri Lanka (FHASL) and former Board Member of the Credit Information Bureau of Sri Lanka (CRIB). - Holds extensive board-level international exposure across Southeast Asia, Central Asia, and Egypt. • Qualifications: - Passed Finalist of CIMA (UK), Associate Member of IBSL (AIB), and alumnus of the Harvard Business School Strategic Leadership Training Program in Microfinance.

Banking & Financial Services
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👔 Abans PLC Appoints Buddhika Dharmawardene as New CEO

• Executive Leadership Change: Abans PLC has officially appointed Buddhika Dharmawardene as its new Chief Executive Officer, effective 20 August 2026. • Decades of Experience: Dharmawardene brings over 26 years of experience within the Abans Group, having joined the company on 1 November 1999. • Career Trajectory: Prior to this appointment, he held multiple leadership roles, including Brand Manager, Deputy Director, Chief Marketing Officer, and most recently, Director of Operations (appointed March 2023). • Qualifications & Impact: Holds an MBA (Merit Pass) from the University of Wales, UK, and completed Executive Education at NUS Business School. He has played a key role in driving business growth, operations, brand development, and strategic expansion across the company's core operations.

Retail & E-commerce
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WSO2 Names Harry Ault as New CEO to Drive Next Growth Phase 📈

• Leadership Transition: Global open-source enterprise software leader WSO2 has appointed Harry Ault as Chief Executive Officer. He takes over day-to-day leadership immediately, succeeding Founder and former CEO Dr. Sanjiva Weerawarana, who stepped down in May 2026. Chief Revenue Officer Devaka Randeniya served as Acting CEO during the transition. • Executive Track Record: Ault brings over 20 years of global go-to-market and revenue leadership experience. He previously served as Chief Revenue Officer at AI inference chip technology company SambaNova Systems. His appointment follows key C-suite expansions at WSO2, including new CFO and CMO appointments. • Strategic Focus for ICT/BPM: WSO2 aims to scale its global customer base of over 700 enterprise organizations and expand its ecosystem across open-source and partner networks. The strategy centers on advancing its Trusted AI Governance vision through the WSO2 Agentic Enterprise Fabric (AEF), integrating API management, identity, engineering, and agent platforms.

Technology & Digital Services
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Suranjith Wewita Appointed New SLTDA Chairman 📈

• Leadership Change: Suranjith Wewita has been appointed Chairman of the Sri Lanka Tourism Development Authority (SLTDA) by Tourism Minister Vijitha Herath. He officially received his appointment letter yesterday. • Role Division: Buddhika Hewawasam continues in his dual/separate role as Chairman of the Sri Lanka Tourism Promotion Bureau (SLTPB). • Professional Background: • Extensive corporate experience in banking (Seylan Bank), financial management, deposit mobilisation, and corporate crisis management. • Active in the tourism sector as a tourism entrepreneur and trade union leader. • Current Engagements: • Member of the Presidential Task Force for Tourism Development. • Secretary of the All Ceylon Tourism Service Providers Association. • Strategic Focus: The Tourism Ministry highlighted that Wewita's financial expertise and leadership will steer the regulatory body to drive growth and sustainability in Sri Lanka's tourism sector.

Tourism, Hospitality & Leisure
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📉 SLTDA Chairman Buddhika Hewawasam Steps Down Ahead of Major Campaigns

• Leadership Change: Joint Chairman of the Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB), Buddhika Hewawasam, has resigned as SLTDA Chairman, effective 17 August 2026. He cited personal reasons, noting he had initially agreed to hold the dual post for one year but extended his tenure at the request of President Anura Kumara Dissanayake. • Strategic Focus: Hewawasam will remain focused on executing upcoming interim market-specific promotional campaigns to maintain visibility ahead of the winter travel season, as well as preparing for the planned Rs. 3.5 Bn global destination branding campaign slated for late 2026 or early 2027. • Sector Impact: The transition comes at a critical time for tourism, a pivotal sector for foreign exchange earnings and employment in Sri Lanka's economy. • Succession: Suranjith Wevita is expected to be appointed as the new SLTDA Chairman by Tourism Minister Vijitha Herath, though official confirmation was pending as of yesterday.

Tourism, Hospitality & Leisure
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Economic News

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📈 Sri Lanka Flagged for ‘Elevated Concern’ Over El Niño & Economic Pressures

• Risk Classification: Joint UN report (OCHA, FAO, WFP, UN Women, WMO) places Sri Lanka in the Tier 2 'Elevated Concern Group' alongside Indonesia, Pakistan, and Afghanistan for Sep–Nov 2026. • Climate Impact: A strengthening El Niño and positive Indian Ocean Dipole bring high rainfall risks, coinciding with the Second Inter-Monsoon (Oct–Nov) and Northeast Monsoon (Dec–Feb). • Agricultural Threat: Severe weather poses flood and input cost risks to rice farming as the crucial Maha cultivation season begins, directly affecting national food security and rural employment. • Macro & Energy Pressures: Diesel (+44%) and gasoline (+41%) prices remain far above pre-crisis levels, alongside elevated fertilizer import costs and a ~6% rise in headline CPI. • Regional Outlook: Cascading shocks from fuel, fertilizer, and food market volatility could push an extra 8.2M people across monitored Asia-Pacific countries into acute food insecurity through late 2026 into 2027. Immediate anticipatory action is urged.

Economy-wide / Cross-sector
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StanChart Sri Lanka CEO Advocates Post-EFF IMF Stand-By Deal 📈

• Proposal for IMF SBA: Standard Chartered Sri Lanka CEO Bingumal Thewarathanthri suggested considering an IMF Stand-By Arrangement (SBA) following the completion of the current Extended Fund Facility (EFF) in 2027. He noted an SBA balances policy flexibility with investor confidence and external market access. • EFF Gains Achieved: The primary fiscal consolidation gains under the EFF include surpassing primary surplus targets to record a 1H Budget surplus, cost-reflective energy pricing, digitized cash transfers, and Central Bank independence. Completing the EFF would mark a major milestone after 17 previously incomplete IMF programs. • Unresolved Economic Issues: Significant challenges remain, including poverty levels hovering near 25%, insufficient support for SMEs, and sluggish foreign direct investment (FDI) inflows relative to Sri Lanka’s potential as an investment destination. • Market & Rating Benefits: Sustained IMF engagement is viewed as essential for maintaining sovereign credit ratings, reassuring global investors, and securing favorable borrowing costs when re-entering international capital markets.

Economy-wide / Cross-sector
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📈 Sri Lanka’s Official Poverty Line Rises to Rs. 17,679 in July 2026

• National Figures: The national official poverty line reached Rs. 17,679 per person/month in July 2026, marking a 0.5% (Rs. 87) MoM increase from June (Rs. 17,592) and a 7.2% (Rs. 1,195) YoY increase from July 2025 (Rs. 16,484). This is the highest threshold recorded since January 2025. • District Breakdown: Highest: Colombo recorded the highest threshold at Rs. 19,067, followed by Gampaha (Rs. 18,969) and Nuwara Eliya (Rs. 18,592). Lowest: Monaragala recorded the lowest threshold at Rs. 16,904, followed by Kilinochchi (Rs. 17,080) and Hambantota (Rs. 17,177). The variance between highest and lowest district thresholds stands at Rs. 2,163. • Economic Context: The rise aligns with accelerating inflation, as the National Consumer Price Index (NCPI) reached 223.4 with YoY inflation at 7.2% in July. The poverty line reflects the minimum expenditure for basic needs, not average household living costs. • Upcoming Data: Department of Census and Statistics scheduled the release of the final 2025 Household Income and Expenditure Survey (HIES) bulletin by late October 2026, which will provide updated data on household consumption patterns and minimum cost pressures.

Economy-wide / Cross-sector
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📉 Sri Lanka's External Current Account Deficit Extends to Fourth Month in July

• Overall Trade Figures: The external current account recorded a US$ 142 Mn deficit in July, pushing the Jan-July cumulative shortfall to US$ 387 Mn. The 7-month trade deficit expanded by ~67% YoY to US$ 6.5 Bn, driven by a 26% YoY rise in total imports to US$ 14.6 Bn. • Import Drivers: The cumulative fuel import bill surged 59.9% YoY to US$ 3.62 Bn, driven mainly by higher crude oil costs. Motor vehicle imports reached US$ 1.5 Bn in the first seven months (US$ 241 Mn in July). Terms of trade deteriorated as import prices outpaced export prices. • Services & Remittances: The services surplus fell 22.4% YoY to US$ 1.8 Bn for Jan-July. Tourism earnings dropped 11.5% YoY to US$ 1.8 Bn amid a 1.7% YoY dip in July arrivals. However, workers' remittances grew 21.4% YoY to US$ 5.4 Bn during the 7-month period. • Reserves & Currency: Gross official reserves edged up to US$ 6.6 Bn by end-July. YTD net foreign inflows to government securities stood at US$ 159.4 Mn in July. The Sri Lankan Rupee depreciated 5.5% against the US Dollar by end-August, though policy measures helped ease recent pressure.

Economy-wide / Cross-sector
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📈 Economists Call for Stronger State Role to Fix Sri Lanka’s "Racket" Economy

Leading economists and analysts highlight that Sri Lanka’s economic structure currently enriches a select few while burdening the majority, calling for progressive state regulation, redistributive market policies, and institutional reform. • Key Economic Issues & Malpractices - Systemic challenges cited include short-termism, low wages, price gouging, tax/VAT evasion, and illegal financial flows. - Highlighted a recent illicit $ 1 Bn transfer scheme involving four commercial bank managers without physical goods imported. - IMF 17th program ensured immediate financial stability, but failed to guarantee long-term social or environmental sustainability. • Sectoral Impacts & Regulatory Actions - Apparel & Textiles: Recognized as a key national success story built on historic investments in public human capital. - Environment & Health: Severe pollution in key water sources like the Kelani River from the Biyagama and Seethawaka industrial zones; Central Environmental Authority (CEA) recently shut 41 illegal factories and suspended the Ambuluwawa cable car project over ecological damage. - Agriculture: State role in paddy purchasing, milling, and distribution remains vital to curb price volatility. - Infrastructure & Utilities: Call for strong state control in natural monopolies like power and water to avoid high private rents. • Institutional Enforcement & Reforms - CIABOC actively investigating major financial malfeasance, including the $ 2 Mn Airbus bribery scandal involving SriLankan Airlines. - Proposed legislative updates aim to establish a Digital Economy Authority and strengthen state control via Electricity Act amendments.

Economy-wide / Cross-sector
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📈 Sri Lanka Construction PMI Gains Momentum in July 2026

Sri Lanka’s construction sector recorded accelerated expansion in July 2026, driven by a steady stream of new project awards despite ongoing supply-side bottlenecks and labor constraints. • Key Indicators & Performance: • Total Activity Index (PMI Construction): Rose to 61.4 in July 2026 (up from 60.0 in June 2026 and 60.0 in July 2025). • New Orders: Expanded faster to 57.1 (vs. 54.3 in June). • Quantity of Purchases: Surged to 64.7 (vs. 60.0 in June) on back of increased work availability. • Employment: Strengthened to 61.8 (vs. 61.4 in June), though firms continue to face skilled labor shortages. • Suppliers' Delivery Time: Modest adjustment to 60.0 (vs. 62.9 in June), reflecting slower delivery delays. • Industry Bottlenecks & Outlook: • Survey respondents reported persistent raw material price pressures and input shortages, particularly a short supply of bitumen. • Expectations for the next three months remain optimistic due to upcoming project pipelines. • Global Context: • Sri Lanka’s sector expansion contrasts with declining trends in major global markets such as Eurozone, France, Germany, Italy, and UK, while Ireland saw a rebound.

Construction & Real Estate
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📈 Sri Lanka Headline Inflation Rises to 8.0% in August 2026

• Headline Inflation: Colombo Consumer Price Index (CCPI, 2021=100) Y-o-Y inflation accelerated to 8.0% in August 2026, rising from 7.3% recorded in July 2026. • Sector Breakdown: • Food Basket: Y-o-Y food inflation accelerated significantly to 8.5% in August 2026 compared to 6.3% in July 2026. • Non-Food Basket: Y-o-Y non-food inflation decelerated slightly to 7.7% in August 2026 from 7.8% in the previous month.

Economy-wide / Cross-sector
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Central Bank’s Dilemma: Retain 5% Target or Shift to 2%? 📈

• Key Policy Decision: The Central Bank of Sri Lanka (CBSL) faces a pivotal choice by October 2026 to sign a new 3-year Monetary Policy Framework Agreement with the Government. CBSL must decide whether to maintain its current 5% inflation target (+/- 2% band) or transition toward the 2% global benchmark. • Core Arguments & Perspectives: • Pro-2% Target: Independent analysts argue a lower target protects purchasing power, curbs hidden taxes on fixed incomes, and boosts long-term investment. They highlight the Cantillon Effect, noting money creation disproportionately benefits large corporates and financial institutions first, while small businesses and wage earners bear the inflation burden. • Pro-5% Retention: Defenders cite structural rigidities, heavy import reliance, and high historical inflation averages (~11% from 1978–2026). CBSL economists caution that immediate aggressive monetary tightening to hit 2% could drag real-sector economic recovery amid supply shocks. • Proposed Glide Path: Former CBSL leadership suggests a staggered 3-year transition—reducing the inflation target step-by-step from current levels (above 7%) to 5% in Year 1, 4% in Year 2, and 3% in Year 3 to balance economic growth with price stability. • Framework & Structural Critiques: • Index Choice: Critics urge shifting from CCPI (Colombo-only) to NCPI for national coverage and updating the outdated 2018–19 consumer basket weights. • Target Metric: Calls exist to target core inflation rather than volatile headline inflation over which monetary policy has limited control.

Economy-wide / Cross-sector
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📈 CBSL Open Market Operations Summary (28 Aug 2026)

• Overnight Money Market: - Call Money: Weighted average rate at 8.84% (Range: 8.75%–8.88%). Total gross volume reached Rs. 44,350 Mn (Net: Rs. 41,600 Mn). - Repo Market: Weighted average rate at 8.90% (Range: 8.86%–9.05%). Total gross volume stood at Rs. 98,475 Mn (Net: Rs. 98,475 Mn). • Open Market Operations (Auctions): - Overnight Repo: Rs. 40,000 Mn offered; Rs. 19,500 Mn accepted out of Rs. 19,500 Mn bids received. Weighted average yield at 8.74%. - Short-Term Repo (5-Day): Rs. 20,000 Mn offered; Rs. 10,000 Mn accepted. Weighted average yield at 8.75%. - Long-Term Repo (30-Day): Rs. 20,000 Mn offered; fully accepted from Rs. 29,000 Mn bids received. Weighted average yield at 9.19%. • CBSL Standing Facilities: - Standing Deposit Facility: Rs. 83,815 Mn utilization. - Standing Lending Facility: Rs. 190 Mn utilization. • Government Securities Holdings: - CBSL Treasury Bills/Bonds: Total face value recorded at Rs. 2.49 Tn (Book value: Rs. 1.53 Tn).

Economy-wide / Cross-sector
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📈 Sri Lanka Customs Exceeds Revenue Target for 8th Straight Month in August

• Revenue Performance: - August Target: Rs. 190.3 Bn | Actual Collected (First 27 Days): Rs. 199.6 Bn (Target already exceeded). - Cumulative 2026 Collection: Rs. 1,832.7 Bn collected in less than 8 months, reaching 83% of the annual Rs. 2,207 Bn target (based on provisional data). • Key Drivers: - Revenue growth driven by stronger enforcement, tighter monitoring of under-invoicing/misdeclaration, improved valuation practices, currency movements, and a rebound in import volumes following foreign exchange reserve stabilization and relaxed import controls. • Fiscal Impact & Context: - The 2026 target of Rs. 2,207 Bn was set 13.5% lower YoY due to anticipated declines in car imports, following a record revenue of Rs. 2,551 Bn in 2025 (+64.2% YoY from Rs. 1,553 Bn in 2024). - Sustained revenue collection provides critical Treasury support to meet fiscal benchmarks under the IMF-supported program.

Economy-wide / Cross-sector
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📈 Sri Lanka Inflation Target Review: Case for Caution

• Framework Overview: Under the Central Bank of Sri Lanka (CBSL) Act of 2023, Sri Lanka set a 5% inflation target to be reviewed every three years, with the first review due in late 2026. • Inflation Dynamics: • Disinflation from 2023 led to temporary deflation (late 2024 to mid-2025). • Inflation recently surged from 2.2% in February 2026 to 7.3% in July 2026 due to global energy shocks and Middle East supply disruptions. • Key Sectors & Drivers: • EMDEs face higher volatility in food and energy prices, which carry larger weights in domestic consumption baskets. • Tradable sector export productivity gains can cause non-tradable price shifts via the Balassa-Samuelson effect (estimated at 1.7%–2.2% in comparable economies like India). • Arguments Against Lowering Target: • A sharp target reduction requires aggressive rate hikes, raising borrowing costs, impairing credit growth, and risking output loss (high sacrifice ratio). • Unfavorable geopolitical fragmentation and ongoing macroeconomic recovery limit room for drastic policy shifts. • Index & Target Design: • CBSL uses headline CCPI rather than core inflation to maintain public trust and clear communication. • Transitioning to NCPI is premature due to higher food weighting (39% vs. 26% in CCPI), longer publication lags (21 days), and a shorter data series starting only in 2014.

Economy-wide / Cross-sector
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Sri Lanka VAT Base Expands 56% in 2025, but Revenue Driver Remains Import-Heavy 📈

• Overall Figures: Net VAT revenue reached a record Rs. 1,746.9 Bn (+33.4% YoY) in 2025, becoming the single largest source of government revenue at 5.3% of GDP. Total VAT-registered entities rose 56.3% YoY to 33,187 (and reached 34,769 by Feb 2026), driven by the lowered registration threshold of Rs. 60 Mn per annum. • Yield Divergence: Average net VAT revenue per registered entity dropped from ~Rs. 61.7 Mn in 2024 to ~Rs. 52.6 Mn in 2025, showing that smaller newly added taxpayers contribute lower individual tax yields. • Sector Breakdown: • Imports: Main driver of growth, surging 49.2% YoY to Rs. 891.4 Bn (51.03% of total net VAT), largely boosted by the resumption of vehicle imports. • Financial Services: Standout performer, jumping 64.7% YoY to Rs. 198.2 Bn. • Manufacturing: Share of total VAT fell to 16.03% (from 18.24% in 2024). • Non-Manufacturing: Share dropped to 32.95% (from 36.14% in 2024). • Tax Mix & Compliance Gaps: Direct-to-indirect tax ratio further weakened from 40:60 in 2024 to 36:64 at the IRD level. Large Taxpayers achieved 92% return filing compliance within a month of due date, but non-LTO (SME) on-time filing stood at just 42% (55% within a month), highlighting persistent compliance challenges as the base expands.

Economy-wide / Cross-sector
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Sustainability, ESG & Corporate Responsibility

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⚠️ Climate Threat Hits Agriculture: Urgent Action Needed to Avert Food Crisis 📈

• Key Climate Impacts & Risks • NOAA reports >90% probability of a very strong El Niño event ahead. • Past precedent: Nov 2025 Cyclone Ditwah damaged ~106,000 ha of paddy (~20% of cultivated Maha area), affecting 227,000+ farmers and leaving >1.1 Mn people needing urgent food & agricultural aid. • Economic vulnerability: 28% of the population was moderately acutely food insecure during the 2022 economic crisis; future shocks threaten paddy, maize, vegetables, fruits, and plantation crops. • Policy vs. Execution Gap • Sri Lanka has frameworks like NDC 3.0 (2026–2035) for climate-resilient agriculture, but responses remain reactive (relief, compensation, emergency imports). • Government established high-level coordination; Parliament’s Climate Caucus calls for Anticipatory Crisis Governance. • 7 Priority Actions for Resilience • Operationalize climate-risk data (seasonal/sub-seasonal forecasts) for farmers. • Prepare seasonal contingency plans & secure seeds/planting materials before shocks. • Build an integrated national climate-risk data platform across state agencies. • Diversify production beyond reliance on narrow planting windows. • Strengthen post-harvest protection (cold chains, milk chilling, processing, storage). • Accelerate breeding of heat-, flood-, and drought-tolerant crop varieties. • Redesign water infrastructure (restore tank-cascades, watersheds, and catchments).

Agriculture, Plantations & Fisheries
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🌱 EV Shuttle Proposed to Boost Eco-Tourism at Horton Plains

Authorities have proposed introducing an Electric Vehicle (EV) shuttle system inside the UNESCO World Heritage site to curb emissions, noise pollution, and wildlife disturbance. • Key Highlights: - Dedicated parking facilities will be set up near entrance gates. - Visitors will be transported into the park via electric shuttle vehicles. - Proposal introduced during a progress review chaired by Environment Deputy Minister Anton Jayakody on August 29. • Economic & Environmental Context: - Targets protection of fragile ecosystems while advancing sustainable tourism. - Part of a broader national framework to modernise eco-tourism infrastructure.

Tourism, Hospitality & Leisure
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🌿 Horton Plains to Limit Daily Visitors and Launch Online Booking System

Sri Lanka's Environment Ministry is implementing new visitor management measures at Horton Plains National Park to protect its sensitive eco-tourism ecosystem and UNESCO World Heritage status. • Visitor Regulation: Plans include a daily cap on entry and an online time-slot booking system to control crowd flow and manage peak visitor density. • Pricing Strategy: An adjusted pricing structure is under consideration to discourage over-visitation while promoting high-value, sustainable tourism. • Conservation Focus: The initiative aims to balance long-term biodiversity preservation with sustainable revenue growth for the tourism sector. The proposal follows a joint progress review on August 29 chaired by Environment Deputy Minister Anton Jayakody, alongside wildlife and forest conservation officials.

Tourism, Hospitality & Leisure
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🌊 Nepal Flash Floods: Climate Risk Warnings for Sri Lanka's Infrastructure

• Disaster Context: A devastating flash flood in Nepal, linked to potential glacial melt and natural dam failures, has claimed over 500 lives, highlighting urgent risks from climate-induced hazards in high-altitude and river-valley settlements. • Infrastructure & High-Risk Zones: - Concerns raised over Sri Lanka's aging network of man-made reservoirs, including major systems like Mahaweli and Kelani. - Weak enforcement of riverbank and canal setback laws has led to unauthorized settlements along critical waterways, elevating severe flood and landslide risks. - Recalls the catastrophic 1986 Kantale Tank failure as a precedent for the economic and human costs of water infrastructure breaches. • Key Policy Recommendations: - Conduct structural integrity assessments of all national dams and reservoirs, focusing on mountainous and densely populated zones. - Enforce strict building regulations near waterways without political interference. - Strengthen national disaster mitigation frame: update hazard maps, test emergency evacuation plans, and upgrade early warning systems. • Economic Implications: Unmanaged climate risks pose major threats to construction, real estate, and national budget expenditure tied to disaster recovery and public infrastructure repairs.

Economy-wide / Cross-sector
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Sri Lanka Faces Dual Farm Risk: Early Drought to Maha Flood Hazards 📈

• Overview: Sri Lanka's upcoming Maha 2026/27 season faces a complex dry-to-wet weather transition, risking severe agricultural disruption. Severe rainfall deficits during the Southwest Monsoon reach ~65% in Anuradhapura and Polonnaruwa, and over 80% in Vavuniya. • Climate Signals: Strong El Niño and positive Indian Ocean Dipole conditions threaten early moisture stress in August–September, followed by potential excess rainfall and flooding from October to December. • Sector Impact: • _Agriculture & Paddy Cultivation_: The rice sector faces major risks across ~694,000 acres in 378 irrigation schemes. High input costs (fuel up 41%–44% since pre-crisis, global urea peaked at US$ 857/tonne, and Brent crude rose >50% earlier in 2026) compound production risks for smallholders. • _Perishables & Supply Chain_: Excessive rainfall threatens high post-harvest losses in vegetables and paddy due to field waterlogging and inadequate crop drying facilities. • Strategic Response: • Shift from a single national planting date to scheme-specific schedules (89 schemes to start pre-monsoon, 289 post-onset). • Establish strategic seed reserves and digital input vouchers for vulnerable smallholders. • Invest in post-harvest protection (drying, hermetic storage) to prevent up to 10% crop losses.

Agriculture, Plantations & Fisheries
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📈 Rs. 22 Mn Ag-Equipment Handed Over for Nuwara Eliya School Meal Program

The UN World Food Programme (WFP) and the Ministry of Rural Development, Social Security and Community Empowerment have provided agricultural equipment worth nearly Rs. 22 Mn to farmers and suppliers under the Home-Grown School Feeding (HGSF) initiative in Nuwara Eliya. • Key Financials & Assets: - New Support: ~Rs. 22 Mn in equipment (water tanks, sprayers, garden hoses, crates, and fencing materials). - Cumulative Investment: Over Rs. 92 Mn spent by WFP to date for HGSF implementation and expansion in Nuwara Eliya District. - Funding Source: Global fashion brand Michael Kors via WFP. • Economic & Social Impact: - Sectors Affected: Direct boost to agriculture, local food production, and national school nutrition programs. - Community Livelihoods: Connects schools with regional food producers, empowering rural communities—especially boosting employment and income for women. - Child Health & Education: Delivers nutritious meals to children to support learning potential, attendance, and overall health.

Agriculture, Plantations & Fisheries
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🌱 UN Global Compact Convenes APAC Leaders to Mobilize Sustainable Finance 📉

UN Global Compact Network Sri Lanka convened the SDG Investment Forum under the Forward Faster Now | APAC 2026 initiative, focusing on accelerating transition and sustainable finance across Asia-Pacific emerging markets. • Key Leadership & Objectives • Opened by Prime Minister Dr. Harini Amarasuriya and UN Global Compact Assistant Secretary-General Sanda Ojiambo. • Aimed at bridging the intermediation gap, unlocking private capital, and fostering blended finance, regional cooperation, and investor confidence. • Highlighted local transactions, including a local-currency renewable energy financing deal between IFC and WindForce PLC. • Corporate Support & Sector Involvement • Supported by major domestic financial and corporate players: Sampath Bank, Hatton National Bank (HNB), Hayleys PLC, Amana Bank, and Dialog Axiata PLC (ICT/telecom). • Collaborators included UNEP FI, PRI, and the Board of Investment of Sri Lanka (BOI). • Actionable Outcomes • Launched a 1-Year Sustainable Finance Implementation Workplan to build technical capacity, deploy internal carbon pricing, and improve disclosure frameworks. • Gathered individual corporate commitments to drive long-term resilience and inclusive regional economic growth.

Economy-wide / Cross-sector
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🙏 CBL Samaposha Marks Over Two Decades of Community Support at Kandy Esala Perahera

CBL Samaposha, a leading brand under Plenty Foods / CBL Group in Sri Lanka's FMCG and agriculture processing sectors, has extended its long-standing community wellbeing initiative at the Kandy Esala Perahera for 2026, marking over 20 years of involvement since 2003. • Initiative Scale: CBL Samaposha is distributing 20,000 CBL Samaposha Aggala packs daily over the 5-day Randoli Perahera, reaching a total of 100,000 packs for pilgrims around the Sri Dalada Maligawa precinct. • Performer & Staff Support: An additional ~2,000 Aggala packs per day will be distributed via the four Devalayas to support traditional dancers, performers, and event staff. • Public-Private Partnership: Conducted in collaboration with the Kandy District Secretariat since 2010, ensuring structured and responsible delivery to thousands of attendees. • Economic & Social Context: Demonstrates sustained corporate social responsibility (CSR) and investment in community nutrition within Sri Lanka's vital food manufacturing and cultural tourism landscape.

Food, Beverage & Consumer Goods
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📈 Link Natural & Sri Dalada Maligawa Launch Health Initiative for Kandy Esala Perahera Performers

Link Natural, through its brand Samahan, partnered with the Media and Special Projects Bureau of the Sri Dalada Maligawa to launch the "Samahan Arakshawe Pelahera" health and wellness initiative. • Target Audience: Supporting over 1,000 traditional performers, including dancers, drummers, torchbearers, and elephant handlers, during the 10-day Kandy Esala Perahera festival. • Services Provided: Designated wellness stations serve hot Samahan drinks before and after performances to counter physical exertion, humid weather, and open-flame heat. • Medical & Relief Support: Volunteers and medical personnel from the Sri Lanka Red Cross Society provide health guidance and first-aid assistance. • Product Assistance: Link Natural provided MuscleGuard and CrampGuard topical products to assist performers with muscle fatigue and exertion.

Healthcare & Pharmaceuticals
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📈 Parliamentary Roundtable Advances Talks on Financing Sri Lanka's Care Economy

• Key Challenge & Economic Impact: Unpaid care responsibilities exclude nearly 75% of working-age women from Sri Lanka's labor force. According to the ILO, every $ 1 invested in the local care sector generates a return of US$ 7.76, making care economy investment a key economic growth driver. • High-Level Initiative: The Women's Parliamentary Caucus (WPC) and Westminster Foundation for Democracy (WFD) convened Prime Minister Dr. Harini Amarasuriya, Speaker Dr. Jagath Wickramaratne, and Minister Saroja Paulraj to embed gender-responsive budgeting into national fiscal allocations. • Strategic Focus Areas: • Direct investment in care infrastructure, early childhood development, eldercare, and social protection mechanisms. • Legislative reforms for workplace protections and fair work standards. • Integration of the care economy into national economic policy and accounting framework. • Civil Society & Policy Recommendations: Fund regular time-use surveys to quantify unpaid care, institutionalize funding for assistive devices, launch pilot after-school programs for low-income schools, and scale up nationwide eldercare center pilots.

Economy-wide / Cross-sector
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🌱 Shift from Compliance to Brand Equity Needed for Sri Lankan Businesses

Sri Lankan companies are being urged to move beyond mandatory sustainability reporting under SLFRS S1 and S2 and leverage Environmental, Social, and Governance (ESG) strategies to build brand value and stakeholder trust. • Strategic Alignment: Organizations are encouraged to view ESG not just as a regulatory disclosure exercise, but as a core business strategy to drive brand equity, employer branding, and long-term competitive advantage. • Communication Gap: Considerable resources are currently invested in sustainability, but efforts often end at report publication without authentic public and stakeholder engagement. • Stakeholder Demands: Modern investors, customers, and partners look beyond financial metrics to evaluate how companies manage social and environmental risks. • Capacity Building: Industry discussions, including the recent "From Compliance to Brand Equity" workshop by FireCircle by G, highlight a growing demand among finance, marketing, and leadership professionals to integrate ESG performance into corporate brand strategy.

Economy-wide / Cross-sector
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Allianz Lanka Drives Women’s Leadership via WIL Branch Engagement 2026 📈

• Event Focus: Allianz Lanka’s Women in Leadership (WIL) Employee Resource Group hosted its third consecutive branch engagement program themed _"Lead. Inspire. Empower."_ to support female career development and corporate leadership. • Participation: Gathered over 35 female employees from Colombo and Western Zone branches for professional networking and skill building. • Key Insights: Guest speaker Manori Unambuwe (Founder/CEO of Accentae Consulting, VP at IronOne Technologies, ex-Ambassador) shared guidance on resilience and career progression drawing from over 20 years in global tech leadership. • Skill Building: Charitha Bandara (Head of Sales Learning Academy) delivered interactive training on personal and professional growth strategies. • Corporate Context: Allianz Insurance Lanka Ltd is a subsidiary of Munich-based global insurance & asset management leader Allianz SE.

Insurance
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Market News

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📈 CSE Snaps Three-Month Losing Streak in August

The Colombo Stock Exchange (CSE) returned to positive territory in August, posting its first monthly gains for both benchmark indices since April. • Monthly Performance: • ASPI: Gained 0.99% in August, reversing part of July's 5.09% decline. • S&P SL20: Rose 1.17% in August, recovering from a 4.27% drop in July. • Year-to-Date (YTD) Trends: • ASPI: Down 5.68% YTD. • S&P SL20: Down 2.40% YTD. • Market Context: • Rebound follows a weak May–July stretch for the ASPI and choppy movement for the S&P SL20. • August's modest recovery contrasts with late 2025, which saw six consecutive monthly gains from July through December.

Capital Markets & Investment
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CSE Corporate Earnings Surge 10% YoY to Rs. 168.3 Bn in 2Q 📈

• Overall Figures: CSE-listed corporate earnings reached Rs. 168.3 Bn in 2Q2026, marking a 10% YoY growth despite a 10% QoQ drop from Rs. 186.6 Bn. Cumulative 1H2026 earnings rose 8% YoY to Rs. 354.9 Bn, while trailing 12-month earnings stood at Rs. 707.7 Bn (down 9% YoY). • Sector Breakdown: • Banks: Led overall performance with Rs. 62.37 Bn (+28% YoY, +32% QoQ), generating 37.1% of quarterly market profits. • Food, Beverage & Tobacco: Earned Rs. 34.78 Bn (flat YoY, +122% QoQ), contributing 20.7%. • Diversified Financials: Reported Rs. 21.58 Bn (-35% YoY, -39% QoQ), accounting for 12.8%. • Telecommunication Services: Surged 86% YoY to Rs. 13.65 Bn (8.1% share). • Capital Goods: Skyrocketed 233% YoY to Rs. 9.96 Bn (-69% QoQ). • Retailing: More than doubled, up 127% YoY to Rs. 4.5 Bn. • Energy & Insurance: Experienced declines of 53% (Rs. 949 Mn) and 27% (Rs. 3.37 Bn), respectively. • Top Counters: The top 10 counters generated ~56% of total quarterly profits. Commercial Bank led with Rs. 17.21 Bn (+8% YoY), followed by Hatton National Bank (Rs. 11.77 Bn), Sampath Bank (Rs. 11.03 Bn, +65%), Nations Trust Bank (Rs. 10.99 Bn, +133%), and Dialog (Rs. 10.11 Bn, +100%). _Note: Softlogic Stockbrokers research covers ~273 counters; results are based on provisional unadjusted data and include potential non-recurring one-off gains._

Capital Markets & Investment
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📈 Bond Market Starts Week Strong as Long-End Yields Drop; August CCPI Inflation Rises to 8%

• Market & Yield Curve Movement The secondary bond market opened the week on a positive note with yields lower across selected tenors while the overall curve consolidated. Yields on the long end declined, supported by robust volumes and sizable block trades. Key trading ranges included: - 15.12.28 at 10.10% | 15.12.29 at 10.30% - 01.08.30 (10.50%-10.46%) | 15.10.30 (10.55%-10.50%) - 01.02.31 at 10.60% | 15.01.33 at 11.20% | 01.11.33 (11.30%-11.35%) - 15.10.34 (11.50%-11.45%) | 15.08.36 (11.78%) | 01.07.37 (11.82%) • Macro & Inflation Trends Headline inflation (CCPI) accelerated to 8% YoY in August 2026, up from 7.3% in July, pointing to persistent price pressures impacting national cost-of-living dynamics. • Liquidity & Central Bank Operations - Net liquidity surplus stood at Rs. 132.33 Bn. - Rs. 82.77 Bn deposited at Central Bank's SDFR (8.25%); Rs. 0.44 Bn drawn via SLFR (9.25%). - CBSL Domestic Operations Dept. absorbed Rs. 70 Bn via Repo auctions: Rs. 40 Bn (overnight) and Rs. 10 Bn (2-day) at 8.75% yield, plus Rs. 20 Bn (30-day) at 9.19% yield. - Weighted average yields: overnight call money at 8.85%, repos at 8.91%. • Foreign Exchange & Currency - USD/LKR spot rate closed at Rs. 328.10/328.30 (depreciating slightly from Rs. 327.98/328.04). - USD/LKR spot volume traded (28 Aug): $ 170.25 Mn.

Capital Markets & Investment
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📈 CSE Begins Week Up 0.11% Amid Moderate Activity

• Overall Figures: The Colombo Stock Exchange (CSE) ended August on a positive note. The All Share Price Index (ASPI) gained 0.11% (+22.78 points) to close at 21,338.69, while the S&P SL20 rose 0.07% (+4.34 points) to end at 6,009.68. Market breadth was slightly negative with 104 advancing counters against 108 decliners. • Turnover & Foreign Inflows: Total market turnover reached Rs. 1.01 Bn with over 50.6 million shares traded. Foreign investors recorded a net inflow of Rs. 18.6 million. Trading was primarily driven by retail investors, while high-net-worth (HNW) activity remained muted. • Sector Breakdown: The capital goods sector dominated total turnover, contributing 30%. The food, beverage & tobacco and diversified financials sectors jointly accounted for 31%, highlighting focused liquidity across core operational areas critical to national economic activity. • Top Contributors: Key positive contributors to the ASPI included BIL, CARS, WIND, JKH, and DFCC. Main negative drags on the index included BREW, VONE, MELS, HNB, and SEMB.

Capital Markets & Investment
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📈 Sri Lanka Rupee Weakens to 328.10/30; Bond Yields Broadly Steady

• Foreign Exchange: The Sri Lankan rupee closed weaker at 328.10/30 against the US dollar in the spot market on Monday, down from 327.98/328.04 recorded on Friday. • Government Securities & Bond Yields: Treasury bond yields showed mixed movements with lower yields on select tenors, while the rest of the yield curve consolidated: • Short-Term Tenors: - 15.09.2027: Closed at 9.45/55% - 15.02.2028: Closed flat at 9.90/10.00% • Medium-Term Tenors: - 15.12.2029: Closed flat at 10.25/30% - 01.08.2030: Closed at 10.45/50% - 15.10.2030: Closed lower at 10.52/65% (down from 10.50/55%) - 15.10.2032: Closed at 11.40/50% - 15.12.2032: Closed lower at 11.00/10% (down from 10.95/11.05%) • Long-Term Tenors: - 15.03.2035: Closed at 11.50/60% - 15.08.2036: Closed lower at 11.75/80% (down from 11.77/80%) - 01.07.2037: Closed lower at 11.75/85% (down from 11.80/92%) • Macro Context: Market activity reflects steady consolidation across sovereign debt maturities amid regular trading in Sri Lanka's government securities & forex markets.

Capital Markets & Investment
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📉 Business Sentiment: Confidence Slips as Doubts Linger

• Overall BCI Trend: The LMD-PEPPERCUBE Business Confidence Index (BCI) edged down by 2 points to 149 in August 2026 (from 151 in July). It sits 23 points above its historic median of 126, but trails 18 points below the 12-month average (167) and is down from 192 in August 2025. • Macro Economic Respite: Official foreign exchange reserves rose marginally to US$ 6.591 Bn at end-July. Additionally, the PUCSL decided against an electricity tariff revision for Q3, offering relief to businesses and energy consumers. • Key Domestic Headwinds: Severe wet weather and flash floods disrupted operations. Public health concerns grew as dengue cases approached 100,000. Corporate sentiment was also influenced by political debates over the 22nd Amendment to the Constitution and security concerns surrounding law and order. • Global Risks & Projections: Sentiment remains broadly stable yet cautious. World Bank downside warnings—including potential escalation in the Middle East and global supply disruptions—keep local business leaders in a watchful, risk-averse stance for the final four months of 2026.

Economy-wide / Cross-sector
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📈 Sri Lanka Rupee Strengthens Spot to 327.68/75; Bond Yields Hold Broadly Steady

The Sri Lankan rupee appreciated slightly against the US dollar in early spot market trading on Monday, while secondary market sovereign bond yields remained largely stable across short to long tenors. • Foreign Exchange Rates • US Dollar Spot: Appreciated to 327.68/75 per USD, up from Friday's close of 327.98/328.04. • TT Rates: Buying 323.50, Selling 332.50 for US Dollar. • Euro TT Rates: Buying 372.58, Selling 386.36. • British Pound TT Rates: Buying 437.19, Selling 451.29. • Government Securities & Bond Market • 15.02.2028: Quoted flat at 9.90/10.00%. • 15.10.2028: Flat at 10.00/10%. • 15.12.2029: Eased slightly to 10.20/35% (from 10.25/30%). • 01.08.2030: Quoted at 10.40/50%. • 15.10.2030: Flat at 10.50/55%. • 01.02.2031: Tick lower to 10.55/65% (from 10.62/67%). • 15.12.2032: Quoted at 10.95/11.10% (from 10.95/11.05%). • 15.08.2036: Quoted at 11.78/85% (from 11.77/80%). • Stock Market Indicators • All Share Price Index (ASPI): Gained +0.18% (+39.37 points) to open at 21,355.28. • S&P SL20 Index: Up +0.24% (+14.41 points) to 6,019.75.

Capital Markets & Investment
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📈 Sri Lankan Stocks Rise as Capital Goods Drive Market Turnover

• Market Performance: Colombo Stock Exchange indices moved up on Monday morning. The benchmark ASPI rose 0.26% (+55.27 points) to 21,371.18, while the S&P SL20 grew 0.34% (+20.54 points) to 6,025.88. • Turnover & Sector Drivers: Total market turnover reached Rs 144.9 Bn. The capital goods sector dominated trading activity, contributing Rs 66.6 Bn to the total. • Top Stock Contributors: - Gains: Windforce (+5.40% to Rs 41.00), Aitken Spence (+2.14% to Rs 143.00), John Keells Holdings (+0.51% to Rs 19.90), and Colombo Dockyard (+0.41% to Rs 121.50). - Losses: Carson Cumberbatch (-1.35% to Rs 710.00) and Nations Trust Bank (-0.72% to Rs 310.75) were key drags. • Corporate Action: Maharaja Foods declared a final scrip dividend of Rs 0.10 per share for FY ended March 31. Post 15% withholding tax, the net dividend (Rs 0.085/share) will be fulfilled by issuing 730,468 new shares at Rs 16.00 each (1 new share per 188.24 existing shares). Food processing/manufacturing share traded up 0.61% to Rs 16.50.

Capital Markets & Investment
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📈 Foreign Holdings in Rupee Treasuries Reach 8-Year High of Rs. 210.56 Bn

• Treasury Inflows & Foreign Demand: Net foreign inflows hit Rs. 8.06 Bn (+3.98% WoW) for the week ended 25 August—the 12th consecutive week of net inflows. Total foreign holdings of rupee Treasuries reached Rs. 210.56 Bn, the highest level since November 2018. • Money Market & Foreign Exchange: System liquidity crossed the Rs. 300 Bn mark to hit a 23-week high of Rs. 318.13 Bn (up from Rs. 278.51 Bn). Weighted average Call Money and Repo rates stood at 8.84% and 8.90%. The LKR appreciated to close at Rs. 327.98/328.04 per USD, with average daily traded volume reaching $ 92.50 Mn. • Bonds & T-Bill Auction Results: • Secondary Market: Yield curve shifted downward on strong buying momentum (e.g., 2030 tenors dropped from 10.75% to 10.50%). • T-Bills: Yields fell for the 7th straight week; 91-day (-16 bps to 9.06%), 182-day (-16 bps to 9.44%), and 364-day (-2 bps to 9.89%). PDMO raised the full offered Rs. 120 Bn (subscription ratio: 2.86x). • T-Bonds: Fully raised target Rs. 50 Bn in phase 1 (subscription ratio: 4.70x). 01.08.30 issued at 10.54%; 15.03.35 issued at 11.70%.

Capital Markets & Investment
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📈 Fitch Rates DFCC Bank’s LKR 12.5 Bn Basel III Subordinated Debt 'BBB+(lka)'

• Issuance Details: Fitch Ratings assigned a final National Long-Term Rating of 'BBB+(lka)' to DFCC Bank PLC's proposed Basel III-compliant, subordinated unsecured debentures worth up to LKR 12.5 Bn. • Structure & Usage: The debentures carry a 5-year maturity and will list on the Colombo Stock Exchange (CSE). Proceeds aim to strengthen DFCC's regulatory Tier 2 capital base and support balance-sheet growth. • Loss Absorption: Features a non-viability clause converting debentures to ordinary voting shares if triggered by the Central Bank of Sri Lanka (CBSL). • Rating Rationale: Rated two notches below DFCC's National Long-Term Rating anchor ('A(lka)'/Stable), reflecting standard loss-severity baseline and poor recovery expectations without going-concern loss absorption.

Banking & Financial Services
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📈 Sri Lanka Stocks Close Higher with ASPI Up 0.20%

• Key Market Indices & Turnover: The All Share Price Index (ASPI) gained 0.20% (+43.21 points) to close at 21,322.86. The S&P SL20 rose 0.34% (+20.37 points) to end at 6,015.18. Total market turnover stood at LKR 2.2 Bn. • Market Contributors: Top positive drivers included Cargills (+LKR 28.00 to LKR 678.50), Hayleys (+LKR 2.50 to LKR 229.25), NTB (+LKR 7.00 to LKR 313.00), Haycarb (+LKR 6.50 to LKR 197.25), and Commercial Bank (+LKR 1.00 to LKR 203.00). Sampath Bank (-LKR 1.75 to LKR 138.25) led losses. • Corporate Highlights: - Raigam Wayamba Salterns announced a dividend of LKR 0.25 per share. - Mahaweli Coconut Plantations declared a dividend of LKR 3.00 per share. - The voluntary buyout offer for Industrial Asphalts by Arcasia Investment & Trading and ATX Partners converted into a mandatory offer after securing a 50.16% stake agreement from two major shareholders.

Capital Markets & Investment
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Rupee Gains Ground; Government Bond Yields Mostly Decline 📈

• Exchange Rate Movement: The Sri Lankan Rupee strengthened against the US Dollar in the spot market on Friday (Aug 28, 2026), closing at 327.98/328.04 compared to 328.50/60 recorded on Tuesday. • Treasury Bond Yield Breakdown: Yields across most maturities broadly edged down, signaling positive sentiment in government debt securities: • 2028 Bond (Maturing 15.02.2028): Closed down at 9.90/10.00% (from 10.00/10%) • 2029 Bond (Maturing 15.12.2029): Closed down at 10.25/30% (from 10.35/45%) • 2030 Bond (Maturing 15.10.2030): Closed down at 10.50/55% (from 10.55/62%) • 2031 Bond (Maturing 01.02.2031): Closed slightly up at 10.62/67% (from 10.62/65%) • 2032 Bond (Maturing 15.12.2032): Closed down at 10.95/11.05% (from 11.15/25%) • 2033 Bond (Maturing 01.11.2033): Closed down at 11.25/35% (from 11.35/45%) • 2034 Bond (Maturing 15.10.2034): Closed down at 11.50/55% (from 11.55/60%) • 2036 Bond (Maturing 15.08.2036): Closed down at 11.77/80% (from 11.85/90%) • 2037 Bond (Maturing 01.07.2037): Closed down at 11.80/92% (from 11.85/95%)

Capital Markets & Investment
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Industry & Sector News

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📈 GovPay Crosses Rs. 5 Bn Digital Payment Milestone

• Overall Figures: Total transactions processed through GovPay have officially surpassed Rs. 5 Bn. • System Adoption: Over 300 government institutions are now integrated into the platform, expanding digital revenue collection. • Strategic Context: Highlighted by the Digital Economy Ministry, the milestone reflects growing public adoption of digital payments as Sri Lanka advances its public sector digitisation and ICT/BPM integration.

Banking & Financial Services
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⛽ CPC Slashes Petrol Prices by Up to Rs. 20/Ltr

The Ceylon Petroleum Corporation (CPC) announced a reduction in petrol prices effective midnight on 30 August, leaving diesel and kerosene rates unchanged. This move directly impacts the energy & transport sector, easing operational costs for small businesses and everyday consumers. • Petrol Price Reductions: - Petrol 92: Down by Rs. 15 (-3.6%) to Rs. 399/litre (from Rs. 414). - Petrol 95: Down by Rs. 20 (-4.0%) to Rs. 475/litre (from Rs. 495). • Unchanged Fuel Rates: - Auto Diesel: Maintained at Rs. 382/litre. - Super Diesel: Maintained at Rs. 478/litre. - Kerosene: Maintained at Rs. 285/litre.

Energy & Utilities
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Sri Lanka’s Global Tourism Campaign Faces Further One-Year Delay 📈

• Campaign Timeline Delay: Launch of Sri Lanka's tourism global marketing campaign is delayed by nearly another year beyond the proposed March 2027 plan. The government will first appoint a consultancy to develop a Global Destination Communication Campaign Roadmap prior to final campaign awarding. • Planned Budget & Interim Push: • Interim Campaign: An immediate Rs. 1.5 billion digital and PR drive running August 2026 to April 2027 across 6 key source markets. • Global Push: A main Rs. 5 billion global branding campaign originally planned from March 2027 to February 2029, now facing timeline resets. • Government Targets: • 2026 Targets: 2.7 million tourist arrivals and ~US$ 4.2 Bn in earnings. • 2027 Targets: Exceed 3 million arrivals and reach US$ 5.0 Bn in revenue. • Key Takeaways: Over 15 years without a sustained global campaign has created structural promotional gaps against global competitors. Officials state the additional consultancy ensures greater transparency without rushing execution.

Tourism, Hospitality & Leisure
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🇯🇵 Largest Privately Organized Japanese Delegation Arrives in Sri Lanka

• Key Highlights: Over 250 Japanese visitors arrived in Colombo under the “Japan Returns to Sri Lanka” campaign. This marks the largest privately organized Japanese delegation to land in the country, aimed at driving long-term growth across tourism, trade, and foreign direct investment. • Growth & Scale: Organized via the Little Japan platform, the initiative expanded significantly from a 45-member delegation in 2024 to today's 250+ visitor group, demonstrating strong private-sector momentum and rising Japanese commercial interest in Sri Lanka. • Strategic Focus: Beyond leisure, the visit targets high-value economic benefits by converting initial travel interest into concrete business, cultural exchange, and investment outcomes. • Key Stakeholders: Founded by Dr. Ruwan Perera (Chairman of Colombo International Airport Hotel), the platform operates alongside national support, highlighted by Aviation Deputy Minister Janitha Ruwan Kodithuwakku welcoming the group at BIA.

Tourism, Hospitality & Leisure
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🚨 Kaspersky Warns: APT Groups Target APAC via Fake Claude AI Apps

Kaspersky GReAT reports that SilverFox—a highly active Advanced Persistent Threat (APT) group—is targeting organisations in the APAC region by distributing fake Claude AI applications for Windows, macOS, and Linux. • Attack Mechanics & Campaign Trends • Uses phishing emails (e.g., fake tax violation notices) and malicious files on messaging apps to deploy cyberespionage malware. • Over 1,600 malicious phishing emails recorded between January and February 2026. • Employs agentic AI (e.g., JADEPUFFER ransomware executing attack cycles in 31 seconds) and indirect prompt injection techniques like ChatGPhish. • Regional Breakdown • Greater China: Main target, accounting for >90% of attacks (Mainland China at 71%). • Emerging Hotspots: Myanmar, Cambodia, and Singapore see rising threat levels. • Sector Disruption • Manufacturing: Hardest hit, comprising over 33% of total attacks. • Tech & Services: Frequently targeted via phishing aimed at ICT/BPM and tech personnel. • Healthcare & Finance: High-value targets facing critical operational risks. • Key Defense Recommendations • Shift to proactive AI threat hunting, Zero Trust architecture, and systematic endpoint coverage.

Technology & Digital Services
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🎓 EDEX Mid-Year Expo 2026 Set to Open at BMICH

Sri Lanka’s premier education and career fair, the EDEX Mid-Year Expo 2026, will take place on September 5–6 at the BMICH, Colombo, from 9:30 AM to 6:00 PM. • Event Overview & Scale: • Features ~45 educational institutions, 10 corporate entities, and direct overseas exhibitors from Finland and Japan. • Ceremonially opened by H.E. Badli Hisham Adam, High Commissioner of Malaysia to Sri Lanka and the Maldives. • Key Industry & Sector Breakdown: • Offers direct engagement with employers across healthcare, consumer goods, agriculture, aviation, cargo & freight, telecommunications, automotive, transportation, software, and banking & finance. • Directly links skill-building with national youth employment, career advancement, and global workforce participation. • New Digital Features & Initiatives: • Digitalized Psychometric Test (Career Key) allows mobile pre-assessment paired with one-on-one guidance by Ceylon Career Guidance Association (CCGA) counsellors. • Introduces EDUSPORT to integrate sports-based critical thinking with learning, alongside the EDUCAST youth podcast initiative. • Endorsements & Strategic Support: • Formally endorsed by key ministries including Education, Youth Affairs, Labor, and Environment. • Partnered with The Employers' Federation of Ceylon, Ceylon Chamber of Commerce, and CCGA.

Education & Training
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📈 Sri Lanka Exports Exceed US$ 10 Bn in Jan–Jul 2026

Sri Lanka’s total exports (merchandise and services) grew by 5.5% YoY to reach US$ 10.49 Bn during the first seven months of 2026, driven by strong growth in services and select manufacturing sectors. • Overall Performance (Jan–Jul 2026) • Total Exports: US$ 10,487.80 Mn (+5.5% YoY) • Merchandise Exports: US$ 8,188.32 Mn (+5.05% YoY) • Services Exports: US$ 2,299.48 Mn (+7.02% YoY) • Monthly Figures (July 2026) • Total July Exports: US$ 1,637.26 Mn (+2.63% YoY) • July Services: US$ 351.92 Mn (+3.75% YoY) • July Merchandise: US$ 1,285.31 Mn (-1.3% YoY) _(provisional data)_ • Key Sector Highlights (Jan–Jul 2026) • ICT/BPM: Reached US$ 1,022.25 Mn (+14.54% YoY), boosting the knowledge economy. • Electrical & Electronic Components: Surged 57.69% YoY to US$ 377.91 Mn. • Food & Beverages: Grew 19.23% YoY to US$ 405.22 Mn, led by processed food (+33.11%). • Spices and Concentrates: Rose 14.32% YoY to US$ 280.49 Mn (cinnamon exports to Mexico +85.54%). • Coconut-based Products: Increased 10% YoY to US$ 726.64 Mn. • Rubber & Rubber-Based Products: Up 4.92% YoY to US$ 579.55 Mn. • Sectors Facing Decline (Jan–Jul 2026) • Apparel & Textiles: Fell 6.50% YoY to US$ 2,879.69 Mn due to weak demand in US (-2.99%), EU (-8.42%), and UK (-11.06%). • Tea: Dropped 7.53% YoY to US$ 817.53 Mn, impacted by lower exports of bulk tea and tea packets, particularly to the Middle East. • Seafood: Decreased 3.73% YoY to US$ 138.08 Mn.

Economy-wide / Cross-sector
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⚠️ AI Security Risks Surge 10-Fold in 1H 2026: Kaspersky

Rapid adoption across key growth sectors—such as Sri Lanka's emerging ICT/BPM and digital service industries—is exposing major cybersecurity gaps, according to Kaspersky’s Q2 2026 report. • Overall Figures & Growth Recorded vulnerabilities in AI and LLM services jumped 10x to 935 in Q2 2026 (up from Q4 2025). Critical vulnerabilities hit 119 in Q2 2026—a nearly 5x increase compared to end-2025. • Impact on Businesses & SMEs Attacks on SMBs disguising malware as popular AI tools reached over 33,300 in the first 4 months of 2026. SMB-targeted AI scams surged nearly 5x YoY compared to the same period in 2025. • Top Vulnerability Types Weak access-control mechanisms for critical system objects. Improper implementation of authentication and authorization. Injection vulnerabilities handling untrusted inputs. • Key Takeaway Organizations must shift beyond routine patch-management toward real-time infrastructure visibility and strict access controls to maintain cyber resilience.

Technology & Digital Services
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📈 Sri Lanka Emerges as World's Top Containerised Market for US Soy Meal

• Overall Figures & Growth: Sri Lanka imported ~255,000 tons of US soybean meal in 2025 and is on track to exceed 300,000 tons in 2026. Despite growing no soy locally, Sri Lanka has become the world’s largest containerised market for US soybean meal. • Animal Feed & Poultry Sector: The national animal feed industry produces 1.3 million metric tons annually, heavily relying on imported protein meal. Around 16 local poultry producers and feed millers have signed licensing agreements for the Sustainable US Soy label, with New Anthoney’s Farms being the first in South Asia/Sub-Saharan Africa to adopt it in July 2023. • Regulatory & Trade Context: Sri Lanka permits GM soybean meal for feed, but bans whole beans. Strong domestic preference for local coconut oil over soy oil further eliminates the need for domestic soy crushing, favoring container imports for mid-sized feed millers. • Bilateral Trade Dynamics: US soybean meal exports serve as a vital input for Sri Lanka's domestic agricultural resilience, counterbalancing a heavily skewed bilateral trade relationship. In 2025, US goods imports from Sri Lanka reached ~US$ 3.1 Bn (driven by apparel & textiles and tea), while US exports to Sri Lanka totaled under US$ 370 Mn.

Agriculture, Plantations & Fisheries
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🚨 Maha 2026/27: Delaying Cultivation to Nov/Dec Recommended Amid El Niño Risk

• Water Crisis & Depletion: Irrigation storage in 74 major reservoirs has dropped sharply to ~35% (1,465 Mn m³) of gross capacity as of late August 2026, down from 63% in early June. Critical tanks like Senanayake Samudraya are at just ~18%, while Ampara district overall stands at ~22%. • Mahaweli & Minor Reservoirs: Upstream Mahaweli storage remains moderate (Victoria 60%, Moragahakanda 61%), but key downstream reservoirs like Kalawewa (32%), Kaudulla (28%), and Minneriya (39%) face severe deficits. Minor village tanks covering ~185,000 ha are largely dry, impacting agriculture and rural domestic water supplies. • Climate Uncertainty: Exceptional Pacific warming signals a strong El Niño threat through Q1 2027. With unassured monsoon rains, early October planting poses severe crop loss risks for the paddy sector after heavy input investments. • Water-First Strategy: Delaying main cultivation until November or December serves as a prudent risk-management tool. Using short-aged crop varieties will still allow a March harvest and protect the subsequent Yala 2027 season. _Note: Recommendations are based on provisional reservoir and climate data._

Agriculture, Plantations & Fisheries
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🚢 The Arctic Option: What a Melting Northern Sea Route Means for Colombo Harbour

• Overall Shipping Context: Middle East instability has diverted Asia-Europe shipping around the Cape of Good Hope, adding 10–15 days to voyages and boosting transhipment demand at the port of Colombo. • Arctic Route Growth: Russia's Northern Sea Route (NSR) is turning into a scheduled container corridor. Chinese carrier Haijie Shipping launched a weekly Ningbo-to-Felixstowe service via the Arctic in under 20 days (vs. ~40 days conventionally). Container transits rose from 7 in 2023 to 24 in 2025, with >30 expected in 2026. Total NSR cargo is on track to exceed 40 million tons in 2026 (+15% YoY). • Colombo Port Impact: Colombo recorded a record 7.78 million TEUs in 2024 (+12.1% YoY), with transhipment accounting for 81%. Ongoing developments like the West Container Terminal and East Container Terminal extension aim to lift total capacity toward 15 million TEUs by end-2026. • Long-Term Outlook: Near-term risks to Colombo remain low due to the NSR’s seasonal 7-week window, high insurance premiums, and ice-class vessel shortages. However, projections suggest the Arctic may be nearly ice-free in summer by the mid-2030s, potentially capturing 2% of global shipping volume by 2030 and 5% by 2050—posing a structural long-term risk to Indian Ocean transit hubs.

Transport, Logistics & Infrastructure
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📉 Sri Lanka Vehicle Registrations Decline 8.5% MoM in July

Sri Lanka’s total vehicle registrations fell 8.5% MoM to 53,221 units in July from 58,151 in June, down 15.2% from the May 2026 peak of 62,776 units, according to JB Securities. The slowdown was broad-based across SUVs, crossovers, two-wheelers, and three-wheelers, though passenger vehicles remained resilient. • Overall Figures & Key Categories • Total Registrations: 53,221 units (-8.5% MoM, -15.2% from May peak) • Two-Wheelers: 38,216 units (down from 40,007 in June); Honda led with 8,510 units, followed by Bajaj (8,096) • SUVs & Crossovers: 4,439 units (-25% MoM); Toyota led with 1,401 units, followed by Honda (936) • Three-Wheelers: 3,741 units (down from 4,962 in June) • EVs: 7,170 units (down from 7,745 in June); electric two-wheelers comprised 5,544 units • Motor Cars & Brand-New Segment • Motor Cars Total: 3,654 units (down from 3,929 in June) • Brand-New Cars: Rose to 1,062 units (vs 998 in June); BYD expanded leadership with 800 units (led by Atto 1 with 612 units). Small cars made up 97.6% of brand-new registrations. Financing share remained low at 42.8%, suggesting high dealer inventory. • Pre-Owned Cars: Dropped to 2,592 units (vs 2,931 in June); Suzuki led with 835 units (Wagon R with 649). • Commercial & Local Assembly • Commercial Growth: Vans increased to 763 units (vs 654), medium trucks to 381 (vs 348), and buses to 180 (vs 128). Pickups fell to 391 (vs 635). • Local Assembly: Edged up to 5,330 units (vs 5,314 in June), dominated by two-wheelers (4,691 units). • Top Source Markets • India: 33,201 units (down from 36,307 in June), primarily two-wheelers (27,341) • China: 7,626 units (down from 8,165); BYD totaled 1,290 registrations • Japan: ~6,050 units, concentrated in cars, SUVs, crossovers, and vans

Transport, Logistics & Infrastructure
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Awards & Recognitions

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🏆 DFCC Bank Clinches Two Regional Banking Awards for Growth and Profitability

• Overall Achievement: DFCC Bank won two national-level awards at the 4th ICC Emerging Asia Banking Conclave & Awards 2026, held in New Delhi, India. • Recognitions Won: - Best Performance on Growth - Sri Lanka - Best Performance on Profitability - Sri Lanka • Key Performance Drivers: Organized by the Indian Chamber of Commerce (ICC), the awards honor DFCC Bank’s balanced strategy of business expansion alongside balance sheet discipline, risk management, and operational resilience. • Leadership Insight: CEO Thimal Perera highlighted that sustainable profitability and growth strengthen the bank's capacity to invest in technology, workforce, and enhanced customer service, supporting long-term performance in Sri Lanka's banking & financial services sector.

Banking & Financial Services
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🎓 Harini Amarasuriya Patronizes Sarasavi Dhiriya Abhiman Scholarship Programme in Jaffna

Prime Minister Dr. Harini Amarasuriya recently presided over the second edition of the "Sarasavi Dhiriya Abhiman" scholarship initiative, held at the Jaffna District Secretariat. • Programme Focus: Dedicated scholarship support aimed at empowering university students living with disabilities. • Event Location: Jaffna District Secretariat. • Key Dignitaries: Held under the patronage of Prime Minister Dr. Harini Amarasuriya. • Socio-Economic Impact: Enhances inclusive higher education and social integration, supporting human capital development within the national context.

Education & Training
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Samsung Recognized at Superbrands Sri Lanka’s Choice 2025 🏆

• Overview: Samsung Sri Lanka won the Superbrands Sri Lanka’s Choice 2025 accolade in the Home Appliance category, highlighting strong brand preference, consumer trust, and long-term market presence. • Core Product Portfolio: Continuous focus on consumer electronics and home solutions—including televisions, refrigerators, washing machines, air conditioners, and connected smart home devices. • Tech & Reliability Standards: • Integrates SmartThings for connected ecosystem automation and remote device management. • Offers a 10-year warranty on Digital Inverter Motors and Compressors to assure long-term product durability. • Leverages global TV leadership (retaining the No. 1 global TV position for 20 consecutive years) with Crystal UHD, Neo QLED, and The Frame lineups. • Distribution & Market Reach: Strengthens island-wide retail accessibility and after-sales support through major Sri Lankan partners like Singer, Singhagiri, Damro, and Softlogic, combined with flexible bank payment plans.

Food, Beverage & Consumer Goods
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🏆 Applications Open for 34th NCE Export Awards 2026

The National Chamber of Exporters of Sri Lanka (NCE) has officially invited eligible Sri Lankan exporters to apply for the prestigious 34th NCE Export Awards 2026. • Key Highlights & Deadlines • Application Deadline: 30 September 2026. • Awards Ceremony: 11 December 2026. • Guidance: NCE is currently hosting briefing sessions to assist applicants with evaluation criteria and submission requirements. • Application Portal: Available for download via www.nce.lk. 📈 National & Global Strategic Value • Brand Credibility: Winners earn the right to display the official winner's logo on corporate communications, email signatures, and product packaging to build trust with local and foreign buyers. • International Reach: Recognised status enhances visibility, acts as a point of distinction, and strengthens representation at international trade exhibitions. • Internal Motivation: Provides management a platform to benchmark performance against global standards while boosting employee morale. • Macro Economic Context • Sri Lanka’s total export earnings crossed the US$ 10.4 Bn milestone in H1 2026. • Recorded a robust growth of +3.3% YoY during the first six months. • Reflects resilient growth across key driving sectors such as apparel & textiles, tea, and ICT/BPM, strengthening national competitiveness and employment in global trade.

Professional & Business Services
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Prime Lands Residencies PLC Named Sri Lanka’s Most Valuable Real Estate Brand for 2026 📈

• Industry Leadership: Prime Lands Residencies PLC secured recognition as the Most Valuable Real Estate Brand in Sri Lanka for 2026 by Brand Finance, evaluating financial performance, brand strength, and long-term value creation. • Portfolio & Deliveries: The residential arm of Prime Group has launched over 55 apartment projects across Colombo and suburbs, with 47 delivered on time. Overall, the company completed 70+ residential developments, alongside Prime Group's 10,000+ land projects. • Economic Context: Underscores sector leadership and customer trust while driving local and international growth within real estate and housing infrastructure.

Construction & Real Estate
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🏆 Ceylinco Life Retains Position as Sri Lanka’s Most Valuable Insurance Brand

Ceylinco Life has once again been named Sri Lanka’s most valuable brand in the insurance sector, according to the 2026 Brand Finance ranking of the country’s 100 Most Valuable Brands. Key metrics from the latest evaluation include: • Brand Valuation & Rating: Valued at Rs. 6.7 billion with an AAA rating for 2026, marking growth from its 2025 valuation of Rs. 6.45 billion (AAA- rating). • National Ranking: Secured the 25th spot overall in the 'Sri Lanka 100' brand rankings. • Evaluation Criteria: Assessed on brand strength and value using internationally recognized standards, incorporating marketing investment, stakeholder equity, and overall business performance. The ranking highlights Ceylinco Life's continued market leadership and brand equity stability within Sri Lanka's broader financial services sector.

Insurance
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📈 NSB Retains Spot Among Sri Lanka’s Top 5 Most Valuable Brands

National Savings Bank (NSB) has once again secured its position among the country's top five most valuable brands, according to the 2026 Brand Finance Sri Lanka 100 valuation assessment. • Overall Landscape: The combined value of Sri Lanka’s top 100 brands grew by 17% YoY to Rs. 650 Bn in 2026, surpassing the pre-crisis peak of Rs. 630 Bn set in 2019. • Sector Breakdown: The banking sector remains the dominant driver of Sri Lanka's brand equity, accounting for ~42% of the total value of the top 100 brands. • Strategic Focus: NSB's recognition highlights its role in national financial security and inclusive development, supported by ongoing investments in digital transformation, customer experience, and modernized services.

Banking & Financial Services
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📈 PR Wire Named 'Best Consultancy to Work For' in Asia-Pacific for 4th Consecutive Year

Sri Lanka's PR Wire, a member of the Wire Communication Consultancy Holdings group, has clinched top honours as the Best Consultancy to Work For (Asia-Pacific - South Asia) at the Asia-Pacific SABRE Awards in Singapore. • Key Recognition: Awarded by PRovoke Media for the 4th consecutive year, evaluating firms via confidential employee feedback on workplace culture, collaboration, DEI, ethical leadership, and mental health support. • Sector Significance: Showcases Sri Lanka’s expanding capabilities in the ICT/BPM and professional service sectors on a global scale. PR Wire is marking 15 years of operations by scaling capabilities in reputation management, digital strategy, media intelligence, and sustainability communications. • Workplace Model: Driven by a 'work from anywhere' policy, continuous leadership development, equal opportunity frameworks, and comprehensive employee well-being initiatives.

Professional & Business Services
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GAEA International Achieves Key SGS Certifications to Boost Sri Lankan Dairy Facility 📈

• Key Highlights: GAEA International Ltd., operator of the Kaern dairy brand in Sri Lanka, has received ISO 22000, HACCP, and GMP certifications from SGS for its local manufacturing facility. • Strategic Partnership: The company operates as a joint venture with a Chinese partner, integrating global dairy supply chain expertise with local operations to strengthen food safety and supply reliability in Sri Lanka. • Market Footprint: Marking its second consecutive year at the Pro Food Pro Pack Exhibition at BMICH, GAEA is expanding its portfolio in dairy processing, offering Kaern Full Cream Milk Powder, UHT Full Cream Milk, Whole Milk Powder, and Skim Milk Powder tailored for food manufacturers and food-service applications.

Food, Beverage & Consumer Goods
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🏆 DIMO Secures Top Honors at NBEA 2026

Sri Lankan conglomerate DIMO won the Infrastructure and Utilities Sector Award and was named Runner-Up for Excellence in ESG at the National Business Excellence Awards (NBEA) 2026. The awards highlight DIMO’s transition from automotive sales into a tech-driven engineering and renewable energy solutions provider. • Sector Impact & Power Infrastructure: • Contributes to over 70% of Sri Lanka's power grid substations. • Completed the New Habarana Grid Substation with Siemens to strengthen the national transmission network. • Delivered an 80% energy efficiency improvement at Colombo's Ambathale water treatment plant. • Renewable Energy Expansion: • Added 18 MW across four utility-scale solar projects in Galle, bringing cumulative solar capacity to 25.845 MW (AC). • Generates 31.8M kWh of clean energy annually, powering ~38,000 families and cutting emissions by over 12,900 tCO2e. • Commissioned Sri Lanka's first microgrid project at the University of Moratuwa. • Engineering & Diversification: • Installed ICC-compliant LED floodlighting at R. Premadasa and Dambulla international cricket stadiums. • Delivered specialized lighting, fire detection, and ELV systems for the flagship Cinnamon Life Integrated Resort project. • Operational focus anchored by DIMO's Sustainability Agenda 2030 across core engineering, energy, and infrastructure verticals.

Energy & Utilities
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🏆 BestWeb.LK 2026 Celebrates Sri Lanka’s Top Digital Talent

LK Domain Registry marked 16 years of the BestWeb.LK Awards at a grand ceremony held at Monarch Imperial, celebrating benchmark standards across Sri Lanka's digital landscape. • Overview & Key Figures: - Total Awards Presented: 106 awards across 24 distinct categories. - Event Significance: Benchmarks national digital presence as a competitive economic advantage and key driver for national reputation. - Evaluation Process: Incorporates software tools, AI, and an expert judging panel of ICT/BPM professionals, academics, and business leaders. • Overall Best Websites: - Gold: homelandsskyline.lk - Silver: parliament.lk - Bronze: jatholdings.lk • Top Web Developers: - Gold: 3CS - Silver: Web Lankan (Pvt) Ltd. - Bronze: Shanika Rajapaksha

Technology & Digital Services
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🏆 Alliance Finance Secures Award Trifecta at NBEA 2026

Alliance Finance Company PLC (AFC) won three major honors at the National Business Excellence Awards (NBEA) 2026, hosted by the National Chamber of Commerce of Sri Lanka: • Gold Award: Excellence in Business and Financial Results (Extra-Large Category) • Gold Award: Excellence in Corporate Governance and Strategy • Runner-Up: Non-Banking Financial Sector • Key Highlights: • Celebrates AFC's strong financial performance, leadership, governance, and long-term sustainable growth strategies. • Demonstrates the growing role of Sri Lanka's non-bank financial sector in integrating Triple Bottom Line (People, Planet, Profit) principles into economic and social development. • AFC remains Sri Lanka’s oldest non-bank financial institution (est. 1956) and the nation's only Sustainability Certified Financial Institution.

Banking & Financial Services
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Corporate News

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📈 Asia Capital Secures Rs. 1.5 Bn Debt Rebate in Key Restructuring Milestone

• Financial Relief: Asia Capital PLC has secured a Rs. 1.5 billion debt rebate from shareholder creditor Fast Gain International Ltd., cutting its Rs. 1.8 billion debt obligation by ~83%. • Remaining Obligation: Following the rebate agreement signed on 30 June 2026 and disclosed to the CSE on 25 August 2026, approximately Rs. 300 million remains outstanding from the original debt. • Restructuring Context: The agreement resolves shareholder debt accumulated since 2024 to fund high operational costs, capital expenditures, and hotel-related bank loan settlements following period losses. • Strategic Impact: The debt reduction significantly eases legacy financial burdens, providing greater balance sheet resilience and financial flexibility for the premier investment banking institution to focus on sustainable long-term growth within Sri Lanka's capital markets landscape.

Capital Markets & Investment
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📈 NSB Group Reports Rs. 22.5 Bn Operating Profit in 1H 2026

National Savings Bank (NSB) Group delivered resilient 1H 2026 financial results, anchored by core banking growth and expanded lending, despite cost pressures and market income volatility. • Overall Financial Performance • Operating Profit: Rs. 22.5 Bn • Total Operating Income: Rs. 45.8 Bn (+3.1% YoY) • Net Operating Income: Rs. 49.1 Bn (+2.3% YoY) • Net Interest Income: Rs. 44.2 Bn (+5.5% YoY), aided by a 4.7% drop in interest expenses • Fee & Commission Income: Rs. 1.40 Bn (+37.0% YoY) via digital and transaction services • Profitability: PBT at Rs. 22.6 Bn (vs. Rs. 24.1 Bn in 1H 2025); PAT at Rs. 13.4 Bn (vs. Rs. 14.7 Bn in 1H 2025) • State Revenue Contribution • Total contribution to public finances reached Rs. 23.8 Bn • Includes Rs. 9.14 Bn in Income Tax, over Rs. 7.29 Bn in VAT & SSCL on financial services, and a Rs. 7.4 Bn dividend declared to the Government. • Balance Sheet & Lending Breakdown • Total Assets: Expanded 2.1% to Rs. 1.87 Trillion • Loans & Advances: Expanded 9.1% to Rs. 601.01 Bn, driving vital credit expansion into retail and key economic sectors • Customer Deposits: Grew 1.5% to Rs. 1.63 Trillion • Equity & Reserves: Shareholders' equity rose 4.1% to Rs. 123.91 Bn; retained earnings jumped 12.4% to Rs. 52.34 Bn. • Key Financial Health Indicators • Net Interest Margin (NIM): Improved to 4.81% (from 4.74% at end-2025) • Asset Quality: Net Stage 3 loans ratio improved to 2.05% (from 2.52%), with coverage up to 59.77% • Capital & Liquidity: Tier 1 Capital at 19.72% (min. 8.5%), Total Capital at 21.1% (min. 12.5%), and Liquidity Coverage Ratio at 311.88% (min. 100%).

Banking & Financial Services
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📈 SLID Concludes Landmark Corporate Director Summit 2026

• Event & Overview: The Sri Lanka Institute of Directors (SLID) successfully hosted the Sri Lanka Corporate Director Summit 2026, marking its 25th anniversary. Theme: _"Future-Ready Sri Lankan Boards – From Compliance to Sustainable Growth."_ • Participation: Gathered 475 key stakeholders, including chairpersons, corporate directors, CEOs, regulators, investors, governance professionals, academics, and senior executives. Featured international and local experts from Sri Lanka, UK, US, Australia, India, Thailand, and the Maldives. • Key Focus Areas: • Moving beyond basic regulatory compliance toward strategic leadership and long-term value creation. • Managing artificial intelligence, ICT/BPM digital transformation, and cybersecurity risks. • Enhancing ESG priorities, corporate reputation, talent development, and organizational resilience. • Key Outcomes & Next Steps: • Insights will be compiled into a Board Governance Insights Handbook to guide corporate decision-making. • Continuous leadership development will be pursued via the SLID Board Leadership Programme to boost global competitiveness, institutional strength, and investor confidence. • Partners: Strategic Partner: Deloitte Sri Lanka & Maldives; Title Sponsor: LYNEAR Wealth Management.

Professional & Business Services
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Porsche Signs US$ 1.5 Bn Strategic AI Deal with TCS 📈

• Deal Overview: German automaker Porsche AG signed a 5-year, €1.25 Bn (US$ 1.5 Bn) agreement with Indian software services major Tata Consultancy Services (TCS). • Key Operational Focus: The partnership will deploy artificial intelligence across Porsche’s engineering, manufacturing, operations, and customer experience functions to drive digital transformation. • Asset Acquisition: As part of the arrangement, TCS will acquire Porsche’s Germany-based consulting subsidiary, MHP Management- und IT-Beratung GmbH. • Valuation & Closing: The MHP unit is valued at €320 Mn (US$ 374 Mn). The acquisition is expected to finalize within 3 to 4 months, pending necessary regulatory approvals. • Strategic Alignment: Porsche CEO Michael Leiters stated the divestment aligns with the automaker's core strategy to focus strictly on its primary automotive business. While centered on European and Indian corporate entities, global shifts in ICT/BPM tech outsourcing highlight growing cross-border demand for AI-driven transformation solutions.

Technology & Digital Services
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🤝 Adfactors PR Acquires Majority Stake in Australia’s SenateSHJ

• Regional Expansion: India’s largest public relations firm, Adfactors PR, has acquired a majority stake in Australian communication consultancy SenateSHJ to build a robust Asia-Pacific footprint. • Operations & Leadership: SenateSHJ will maintain its brand identity and continue operating from Sydney and Melbourne under Co-founder/Chair Angela Scaffidi AM and CEO Darren Behar. Adfactors PR CEO Nijay N. Nair joins the SenateSHJ board. • Sri Lanka Impact: The partnership enhances the international network for Adfactors PR Lanka, benefiting local enterprises looking to navigate cross-border reputation and trade in Australia. • Strategic Trade Links: The expansion directly supports key Sri Lankan export sectors targeting Australia, including apparel, tea, and rubber, alongside investment, education, and community linkages.

Professional & Business Services
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📈 Fintrex Finance More Than Doubles 1Q PAT to Rs. 210 M

• Overall Financial Performance (1Q FY2026/27): • Profit After Tax (PAT): Rs. 209.93 Mn (+104% YoY from Rs. 103 Mn) • Profit Before Tax (PBT): Rs. 340.59 Mn (+102% YoY) • Gross Income: Rs. 2.05 Bn (+57% YoY) • Total Operating Income: Rs. 1.31 Bn (+65% YoY) • Income Breakdown & Cost Impact: • Interest Income: Rs. 1.70 Bn (+50% YoY) • Net Interest Income: Rs. 961.95 Mn (+55% YoY) • Net Fee & Commission Income: Rs. 334.77 Mn (+104% YoY) • Impairment Charges: Rs. 278.73 Mn (+43% YoY) • Net Operating Income: Rs. 1.03 Bn (+72% YoY after provisions) • Balance Sheet & Growth Indicators: • Total Assets: Rs. 34.45 Bn (+9% expansion during the quarter) • Loans & Lease Receivables: Rs. 30.37 Bn (+7% quarterly growth) • Total Equity: Rs. 4.59 Bn (+5% quarterly growth) • Net Assets Per Share: Increased to Rs. 16.01 (from Rs. 15.28) • Context: Performance is based on unaudited interim financial statements for the quarter ended 30 June 2026. Revenue momentum was driven by portfolio expansion in core financial services, disciplined execution, and significant fee-based diversification.

Banking & Financial Services
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⚖️ FJ&G de Saram Launches U.L. Kadurugamuwa Legacy Series

Leading Sri Lankan law firm FJ&G de Saram launched the U.L. Kadurugamuwa Legacy Series in its 185th anniversary year to honor its late Precedent Partner, U. L. Kadurugamuwa. The inaugural event at Hilton Colombo brought together legal professionals, arbitrators, and clients to discuss commercial arbitration. • Dispute Resolution & ADR: Highlights included Kadurugamuwa's key role in Sri Lanka's Alternative Dispute Resolution (ADR) framework, including the Arbitration Act No. 11 of 1995, ICLP, and the International Alternate Dispute Resolution Centre (IADRC). • Commercial Arbitration Trends: Legal experts from Allen & Gledhill, Rajah & Tann, and SIAC discussed multi-contract disputes, jurisdictional challenges, and the role of supervisory courts in cross-border transactions. • SIAC Rules 2025: Panelists presented key updates from the SIAC Rules 2025, emphasizing emergency arbitration, interim relief, and early dismissal of unmeritorious claims to enhance legal efficiency for businesses.

Professional & Business Services
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📈 People’s Insurance 1H 2026: GWP Up 39%, PBT Surges 63%

People’s Insurance PLC recorded a strong financial performance in 1H 2026, significantly outperforming Sri Lanka’s broader general insurance industry. • Overall Performance - Gross Written Premium (GWP): Rs. 5.21 Bn, up ~39% YoY (vs. industry growth of 23%). - Profit Before Tax (PBT): Rs. 525.6 Mn, up ~63% YoY. - Profit After Tax (PAT): Rs. 357.3 Mn (+61% YoY). - Earnings Per Share (EPS): Rs. 1.75 (vs. Rs. 1.09 in 1H 2025). • Sector Breakdown - Motor Portfolio: Rs. 4.05 Bn GWP (+39.2% YoY vs. ~33.5% industry growth), remaining the primary growth engine. - Non-Motor Portfolio: Rs. 1.16 Bn GWP (+37.4% YoY), substantially beating the overall industry's Non-Motor expansion of ~9.9% as diversification efforts pay off. • Financial Position & Operations - Underwriting Loss: Reduced significantly to Rs. 92.4 Mn (down from Rs. 231.9 Mn loss in 1H 2025). - Investment & Other Income: Increased to ~Rs. 618 Mn (+11.7% YoY). - Total Shareholders' Equity: Reached ~Rs. 6.33 Bn as of June 30, 2026. - Credit Rating: Fitch Ratings affirmed its 'A(lka)' Insurer Financial Strength rating with a Stable Outlook, supported by healthy Capital Adequacy Ratios.

Insurance
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📈 Singer Finance to Raise Up to Rs. 3 Bn via Rights Issue

Singer Finance (Lanka) PLC has announced plans to raise up to Rs. 3 billion through a capital-boosting rights issue. • Capital Raising Terms: The company will issue up to 76,648,787 new ordinary voting shares at Rs. 39.20 each. Existing shareholders will be offered 8 new shares for every 29 existing ordinary voting shares held. • Use of Proceeds: Funds will be utilized to strengthen capital adequacy ratios and support expansion in lending operations within Sri Lanka’s non-banking financial sector. • Regulatory & Governance Approval: Received Central Bank of Sri Lanka (CBSL) approval on 19 August 2026. Final execution remains subject to CSE approval in principle and an Extraordinary General Meeting (EGM) shareholder resolution. • Financial Background: • Stated Capital: Rs. 4.005 Bn (277.85 million shares as of 30 June 2026). • Net Asset Value: Rs. 35.36 per share (end-June 2026). • Parent Company: Singer (Sri Lanka) PLC (controlled by Hayleys PLC) holds the major shareholding at 79.93%. • Share Trading: Stock traded up by 70 cents to Rs. 49.00 mid-session.

Banking & Financial Services
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📈 Bank of Ceylon Reports Strong 1H 2026 Performance with Rs. 62.7 Bn PBT

• Core Financial Highlights PBT: Rs. 62.7 Bn PAT: Rs. 39.8 Bn Net Interest Income: Rs. 109.4 Bn Interest Income: Rs. 253.7 Bn (Up 4% YoY) Net Fee & Commission Income: Rs. 12.7 Bn (Up 17% YoY) Total Operating Income: Rs. 131.4 Bn (Up 9% YoY) Government Tax Contribution: Rs. 39.2 Bn • Balance Sheet & Ratios Total Assets: > Rs. 5.4 Tn Total Deposits: Rs. 4.3 Tn Gross Loans & Advances: Rs. 2.8 Tn Stage 3 Loan Ratio (Net): Improved to 5.01% Cost-to-Income Ratio: 32.67% ROA / ROE: 2.30% / 20.44% Capital Adequacy: Tier I at 13.32%, Total Capital at 17.22% • Key Focus Areas & Economic Impact Financed critical national infrastructure, SOEs, and key imports (fuel, pharmaceuticals, coal, gas) Dedicated funding for key growth drivers including SMEs, agriculture, exporters, and youth/women entrepreneurs via dedicated circles and the Agri-Banking Unit Facilitated national social programs, opening 700,000+ accounts for Aswesuma beneficiaries Accelerated adoption of digital solutions like BOC Flex and SmartPay QR while remaining the largest facilitator of inward remittances

Banking & Financial Services
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BOC to Raise Up to Rs. 10 Bn via AT1 Bonds 📈

State-owned banking giant Bank of Ceylon (BOC) has opened an unlisted, Basel III-compliant Additional Tier 1 (AT1) bond issue to bolster its financial structure. • Issue Details: Offers an initial Rs. 5 Bn (50 million bonds at Rs. 100 each), with an option to raise up to Rs. 10 Bn in case of oversubscription. Rated ‘AA-‘ (Stable) by Lanka Rating Agency Ltd. • Returns & Maturity: Floating annual rate set at 12-month net T-Bill rate + 2.00% p.a. Bonds are perpetual (no fixed maturity), with a discretion-based call option after 5 years subject to CBSL approval. • Impact on Capital: Designed to enhance Tier 1 capital, manage asset-liability gaps, and expand liquidity. BOC's Capital Adequacy Ratio (CAR)—currently at 17.22% vs 15.00% regulatory minimum—is projected to rise to 17.45% (at Rs. 5 Bn raised) or 17.69% (at Rs. 10 Bn raised). • Investor Eligibility: Issue runs until 31 December 2026 (or until fully subscribed) exclusively for qualified institutional and high-net-worth investors, with a minimum subscription of Rs. 1 Mn (Rs. 50 Mn for individual qualified investors).

Banking & Financial Services
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### OMODA & JAECOO Record 144,841 Global Sales in June-July 📈

• Global Sales Figures: OMODA and JAECOO achieved 144,841 total global vehicle sales across June and July 2026, driven by sustained international demand. • New Energy Vehicle (NEV) Performance: - NEV segment dominated results with 112,775 units sold (~77.8% of total volume). - Strong growth reflects global demand for electric, hybrid, and intelligent mobility tech. • Sri Lanka Market Context: - Distributed exclusively by Hayleys Mobility (a division of Hayleys Fentons Ltd.). - Local operations provide full after-sales support, genuine parts, and specialized ownership solutions for Sri Lanka's growing automotive and electric vehicle markets.

Manufacturing & Industrials
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Uncategorized

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🚨 Nepal-Tibet Border Floods: Death Toll Rises Over 700

• Casualty & Rescue Figures • Confirmed Deaths: 734 in Nepal (up from 675) and 16 in Tibet. • Missing Persons: 2,498 reported missing in Nepal; 546 missing in Tibet. • Rescues Executed: 8,186 individuals safely rescued by nearly 20,000 security personnel. • Impact on Foreign Travelers & Tourism • Foreign Nationals Rescued: 261 foreign tourists rescued in Nepal. • Unaccounted Tourists: 320 tourists missing in Nepal; 261 missing in Tibet across 23 countries (including 15 UK citizens). • Disaster Overview • Devastating flash floods and mudslides severely impacted the Nepal-Tibet border region. • Data based on official updates from Nepal Police, Disaster Management Authority, Nepal Tourism Board, and CCTV.

Other
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Verdict on 2019 Easter Sunday Attacks Case Fixed for 22 Sept ⚖️

• Key Highlights: The Colombo Permanent Trial-at-Bar will deliver its verdict on 22 September 2026 regarding the 2019 Easter Sunday terror attack case involving 25 accused individuals, including Naufer Moulavi. • Legal Scope: The Attorney General has filed 23,270 charges against the accused under the Prevention of Terrorism Act (PTA), covering conspiracy, aiding and abetting, weapons collection, and attempted murder. • Background & Context: The case stems from the coordinated 21 April 2019 suicide bombings on churches and luxury hotels, which resulted in over 270 deaths and injured hundreds—severely impacting Sri Lanka’s national security and tourism sector.

Other
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🕯️ In Memory: Anthropological Assessment of Prof. Wimal Dissanayake’s Cinema Legacy

An anthropological critique evaluates the extensive legacy of the late communications scholar Prof. Wimal Dissanayake (1939–2026), focusing on his post-colonial cultural framework Enabling Traditions (2005) and its application to Sri Lankan and South Asian visual media. • Academic Impact: Highlighted heritage as a dynamic tool for indigenous identity and intellectual autonomy rather than a regressive obstacle. Challenged Eurocentric hegemony in film analysis by applying classical Eastern concepts like Rasa (aesthetic flavor) and Dhvani (suggestion) to evaluate directors such as Lester James Peries and Satyajit Ray. Positioned South Asian cinema as a vehicle for communities to process rapid capitalistic modernization. • Key Analytical Limitations: Textual Essentialism: Relied heavily on high classical texts, elite canonical histories, and Sanskritized models, which risks overlooking internal power hierarchies, caste fractures, and subaltern realities. Marginalized Perspectives: Failed to fully capture how lower-caste and subaltern groups often use creative media to dismantle traditional structures rather than find aesthetic harmony within them. Material & Industrial Gaps: Downplayed structural realities such as corporate financing, state censorship, and market distribution networks that govern cultural production. Post-Colonial Paradox: Relied on Western critical theorists (e.g., Walter Benjamin) to validate indigenous frameworks, raising questions about whether the approach truly achieves local intellectual autonomy. • Overall Assessment: While foundational in rescuing Asian cinema from Eurocentric views, scholars note Dissanayake's text-centric models must be balanced with field-based ethnographic research to reflect the material realities of everyday folk life.

Telecommunications & Media
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🕯️ Parliament Pays Tribute to Music Icon Dr. Nanda Malini

• National Loss: Sri Lankan Parliament observed a minute's silence to honor veteran music icon Dr. Nanda Malini, who passed away at the age of 82. • Government & Opposition Tribute: Prime Minister Dr. Harini Amarasuriya and Opposition Leader Sajith Premadasa praised her nearly seven-decade career, recognizing her immense contributions to Sri Lankan music, culture, social justice, and democracy. • Career Highlights: Debuted in cinema music via 'Ran Muthu Doova' under Dr. W.D. Amaradeva; widely celebrated for her impactful social discourse through works such as 'Pavana' and 'Sathyaye Geethaya'. • Final Rites: Public respects at her residence in Nawala; cremation scheduled for 5:00 p.m. tomorrow at the Borella Cemetery without a formal funeral ceremony, honoring her final wishes.

Telecommunications & Media
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Sri Lanka Declares 3-Day National Mourning Following Passing of Veteran Musician Nanda Malini

• National Observance: The Government of Sri Lanka has officially declared a three-day national mourning period from 21 to 23 August following the passing of renowned singer Visharada Nanda Malini. • Public Homage: Remains will lie at her residence on Wijayaba Mawatha, Nawala, starting today from 10:00 a.m. for the public to pay their final respects. • Funeral Details: Religious ceremonies are scheduled for 3:30 p.m. tomorrow (22 August), with final rites taking place at 5:00 p.m. at the Borella General Cemetery. • Final Wishes: In adherence to her final wishes, the family confirmed that the cremation will proceed without an official state funeral ceremony.

Telecommunications & Media
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6th JXG-MHA 9-A-Side Hockey Tournament Set for 22 Aug 👍

• Overview: The 6th edition of the JXG-MHA 9-A-Side Hockey Tournament, sponsored by Janashakthi Group and organized by the Mercantile Hockey Association (MHA), will take place on 22 August at Astro Turf, Colombo 7. • Participation: The event brings together 16 corporate teams across three divisions to drive sports engagement in the corporate sector, featuring national-level players and emerging talent. • Divisions & Key Teams: • Division A: Defending champion Hatton National Bank (HNB), Seylan Bank, Sampath Bank A, Commercial Bank, Hayleys, and apparel & textiles giant MAS Holdings. • Division B: CIAP, Nations Trust Bank, and Browns & Company. • Division C: David Pieris Motor Company, John Keells Holdings, Singer (Sri Lanka), Future Life Holdings, Hemas Holdings, InQube Global, and Sampath Bank B. • Previous Edition Results: In the 5th edition, HNB won the Division A title against Sampath Bank, Browns & Company claimed Division B over Hayleys, and Nations Trust Bank took Division C against David Pieris Motor Company. • Event Details: Matches begin at 8:30 a.m. with live coverage on the MHA Facebook page and Sri Lankan Sports TV YouTube channel.

Tourism, Hospitality & Leisure
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Suspected Drug Trafficker Shiran Basik Extradited from Dubai to Sri Lanka ⚖️

• Key Action: Sri Lanka Police secured a 72-hour detention order against 48-year-old Shiran Basik following his arrest in Dubai and return to the country on August 14. • Background & Context: Suspected of being a major pharmaceutical & drug trafficking operative, his apprehension aligns with ongoing national security efforts to dismantle illicit trade networks impacting Sri Lanka's domestic safety and national economy.

Other
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⚠️ Notice: Summary Unavailable

• Status: Unable to generate summary based on provisional network status. • Details: The source content from FT.lk could not be retrieved due to a connection timeout.

Other
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📈 Sri Lankan Business News Update

• Data Status: Unable to process summary due to incomplete input data. • Issue: Article content from ft.lk could not be retrieved due to a connection timeout error on August 15, 2026. • Note: Update pending receipt of valid news content.

Other
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⚠️ Data Unavailable: Could Not Extract Report

• Status: The attempt to retrieve the requested Sri Lankan business news content failed due to a connection timeout (_www.ft.lk_). • Impact: Detailed data, market performance metrics, and sector breakdowns are currently unavailable. • Note: This update is based on provisional technical error logs as of 14 August 2026. Please provide the article text directly for a complete summary.

Other
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📈 Error Reporting: Unable to Retrieve Latest Sri Lankan Business News

• Status: The connection to the news source (_www.ft.lk_) timed out during content extraction. • Details: Failed to retrieve full text due to an HTTPS read timeout error as of 14 August 2026, 05:07 AM. • Note: Market and economic data summary is unavailable due to incomplete source data.

Other
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⚠️ Unable to Generate Summary: Data Extraction Error

• Status: Content extraction from the source (_www.ft.lk_) timed out. • Details: No article content or financial data was retrieved. _Please provide the news text or try again shortly based on provisional data availability._

Other
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```json { "category": "Product & Service Launches / Business Expansions", "sector": "Transport, Logistics & Infrastructure" } ```

Real Estate

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📈 RIUNIT Investor Forum 2026 Spotlights Regional Growth & Real Estate

Diplomats, developers, and financiers convened in Malé on 11 August 2026 for the RIUNIT Investor Forum to explore FDI trends, regional collaboration, and emerging opportunities in the Maldives and South Asia. • Regional Collaboration & Economic Outlook: • Key themes emphasized cross-border investment, infrastructure, digital commerce, food/energy security, maritime connectivity, and tourism over regional competition. • Keynote address called for innovation-led capital in non-tourism sectors, including sustainable infrastructure, renewable energy, healthcare, and the blue economy. • Sri Lankan real estate presence highlighted via Home Lands Group alongside regional diplomatic leadership. • Maldives Real Estate & Housing Dynamics: • Massive expansion in Hulhumalé apartment supply: total units rose from 656 (2016) to 7,102 (2023). • High-end residential growth: luxury and semi-luxury apartment stock surged from under 500 units (2015) to over 3,000 (2023). • Property valuation surge: top-end transaction prices appreciated from ~$135 per sq. ft. (2016) to ~$230 per sq. ft. (2024). • Infrastructure impact: Sinamalé Bridge cited as a critical catalyst driving real estate valuations and investor confidence. • Key market drivers: demand for Islamic finance, land availability, project financing, and policy stability. • Forum Partners: • Supported by Maldives Islamic Bank, Amãna Takaful, Home Lands Group, HDC, MCDGI, RCC Maldives, and media partner NTV.

Construction & Real Estate
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Orion City Launches Orion Tower II to Elevate Sri Lanka’s ICT/BPM Infrastructure 📈

• Project Overview: Orion City officially announced the commencement of construction for Orion Tower II in August 2026, targeting completion by January 2029. • Key Features & Capacity: Delivers ~300,000 sq. ft. of Grade A office space. Integrates with Orion Tower I for a combined floor plate of ~36,000 sq. ft. featuring 180-degree Colombo views and flexible, column-free floor plans. • Sustainability & Design: Designed by DP Architects Singapore to target LEED Platinum Certification, reinforcing eco-friendly workplace standards. • Ecosystem & Facilities: Expands Orion City's integrated hub, offering flexible workspaces, childcare, EV charging, fitness, dining, and retail services to support local and foreign ICT/BPM enterprises.

Construction & Real Estate
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🏛️ Cabinet Approves Revised Rs. 25.6 Bn Agreement for Sethsiripaya Phase III

• Project Overview: The Cabinet approved a revised contract worth Rs. 25.58 Bn with M/s Maga Engineering Ltd. to complete remaining construction on Sethsiripaya Stage III. The project was initiated by the Urban Development Authority (UDA) to expand state administrative office space. • Cost Revision & Breakdown: - Original Estimated Capital Expenditure: Rs. 16.7 Bn (commenced in 2021). - Revised Total Project Cost: Rs. 38.48 Bn (includes past costs, remaining work, taxes, and other expenses). - Remaining Works Contract: Agreed at Rs. 22.76 Bn (excluding completed work value, payables, contingencies, and taxes). • Key Context & Timeline: Construction halted after completing three floors due to economic instability, material shortages, import restrictions, and rising construction sector costs. The project is now being expedited to meet office space demands. • Financing & Allocation: Funding will be shared by allocated institutions according to space usage, including the Energy Ministry, Inland Revenue Department (IRD), State Pharmaceuticals Corporation (SPC), and the UDA.

Construction & Real Estate
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📈 Ruwanpura Expressway Approval Set to Surge Real Estate Demand

Approval for the procurement of Phase 1 of the Ruwanpura Expressway (Kahathuduwa to Ingiriya) is expected to significantly boost land values along the corridor, according to LankaPropertyWeb (LPW). • Historical Performance (2017–2025): • Ingiriya: Average land asking price surged from Rs. 49,363 to Rs. 344,850 per perch, a 598.59% (7-fold) increase. • Padukka: Recorded a 151.30% growth. • District Comparisons: Outperformed Kalutara District (+123%) and Colombo District (+66.90%) averages. • Investment Returns: Outpaced the current average 12-month commercial bank fixed deposit rate of ~9.04% p.a. • Key Projected Growth Areas: • Primary Beneficiary: Ingiriya is positioned as the next major growth market at the Phase 1 endpoint. • Adjoining Corridors: Demand to strengthen in Polgasowita, Gonapola, Horana, and the interchange hub Kahathuduwa. • Future Regional Expansion: Activity expected to spread toward Kuruwita, Ratnapura, Pelmadulla, Balangoda, Belihuloya, Bandarawela, Ella, and Badulla under later phases. • Economic Impact: • Infrastructure-led connectivity reduces travel times to Colombo, driving residential, commercial, and mixed-use developments. • Offers long-term capital appreciation for property owners, developers, and investors seeking affordable Colombo alternatives.

Construction & Real Estate
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📈 Colombo Land Valuation Indicator Rises 5.9% in H1 2026

Sri Lanka’s Central Bank reports that the Land Valuation Indicator (LVI) for the Colombo District increased by 5.9% YoY during the first half of 2026, maintaining a moderate growth pace compared to H1 2025. • Overall Growth: LVI and all three sub-indicators expanded both year-on-year (YoY) and compared to the second half (H2) of 2025. • Sub-Indicator Breakdown (YoY): • Residential LVI: Up by 6.7% (leading overall growth) • Commercial LVI: Up by 5.7% • Industrial LVI: Up by 5.2% • Sequential Trend: Growth rates for both residential and industrial real estate segments accelerated compared to the increases recorded in H2 2025, signaling steady demand in key urban property sectors.

Construction & Real Estate
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🏢 Tilko Blue Ocean Signs BOI Agreement for Jaffna’s Tallest Residential Tower

Tilko Blue Ocean Holdings (Pvt) Ltd. has signed an agreement with the Board of Investment of Sri Lanka (BOI) to construct 'Yarl Royal Palace' in Jaffna, marking a major milestone for real estate and regional development in Northern Sri Lanka. • Project Overview: Located at No. 107, Kandy Road, overlooking Old Park, the project is set to become the tallest residential landmark in the Northern Province. • Development Scale: Features 19 levels in total—including 6 parking levels and 13 residential floors housing 78 premium units. • Economic Impact: Drives regional growth across construction, engineering, logistics, and property management while expanding urban infrastructure and local employment outside the traditional Colombo hub. • Diaspora Capital: Designed as a bridge to attract long-term investment from the global Sri Lankan diaspora (UK, Canada, Australia, Europe) into Northern property markets. • Strategic Significance: Highlights private-sector confidence and signals expanding opportunities in Sri Lanka's regional construction and urban development ecosystems.

Construction & Real Estate
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🏢 CVU Colombo Forum 2026 Tackles High-Rise Safety & Resilience

The Council on Vertical Urbanism (CVU) Sri Lanka Chapter hosted the Colombo Forum 2026, gathering local and international experts under the theme “Design to Survive: Tall Buildings in an Age of Global Instability” to address rising physical, technological, and geopolitical risks facing vertical urban centers like Colombo. • Key Industry Focus & Technical Highlights: • Urban Infrastructure & Planning: Stressed a 25-year forward-looking strategy to protect tall structures from evolving threats, including climate risks, geopolitical tensions, and drone hazards. Emphasized integrated 3D urban design. • Construction & Steel Systems: Experts noted composite steel systems dominate the world’s 100 tallest buildings. Reusing structural steel reduces embodied carbon emissions to near-zero (carrying just 1% of traditional steel production emissions)—crucial as structural floors account for ~70% of a building's embodied carbon. • Protective Engineering: Highlighted mathematical risk-based blast protection, emphasizing optimal perimeter defenses (e.g., 10-11m standoff distances offering a 6:1 benefit-to-cost ratio). • Key Milestones & Initiatives: • International Launch: Officially launched the IAPS Sri Lanka Chapter (led by Prof. Ranjith Dissanayake) to strengthen resilience against structural hazards, coastal threats, and cyclones. • Technical Standards: Unveiled technical manuals including the "Design Calculation Manual - Reinforced Concrete High-rise Building Design" to assist peer-reviewed local engineering, notably for Colombo Port City developments.

Construction & Real Estate
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🏛️ Govt. Invites Bids to Commercialise Heritage Bungalows in Colombo 5

• Transaction Overview The Ministry of Finance, Planning and Economic Development has called for Expressions of Interest (EOIs) to unlock the value of prime State-owned heritage bungalows in Colombo 5. The properties will be offered via a transparent National Competitive Selection Process on 30-year lease agreements, while full ownership of land and buildings remains with the Government. • Property Scope & Locations The portfolio includes architecturally distinctive properties situated in one of Colombo's most sought-after residential and commercial precincts: - Stanmore Crescent, Colombo 5 - Paget Road, Colombo 5 - Skelton Road, Colombo 5 • Target Sectors & Sectoral Impact The initiative forms part of a broader national strategy to stimulate private investment, revitalise underutilised public assets, and expand tourism infrastructure. Key operational concepts invited include: - Boutique hospitality and heritage accommodation - Signature fine dining, cafés, and lifestyle establishments - Premium tourism-oriented retail concepts catering to local and international visitors • Submission Guidelines & Timeline Proposals will be evaluated independently for each property, allowing investors to submit bids for single or multiple locations. - Property Inspection Date: 12 August 2026 at 10:00 AM - Proposal Deadline: 25 August 2026 - Guidelines: Available via the Finance Ministry official portal

Construction & Real Estate
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Financial & Investment News

Govt Targets Fresh US$ 4.1 Bn Investment into Port City Colombo 📈

• Overall Investment Target: The Government is aiming for an additional US$ 4.1 Bn in investments over the next 5 years, adding to US$ 2.1 Bn already confirmed. • Key Industry Investors: Key players operating in the Special Economic Zone (SEZ) include: • ICT/BPM: IGT1 for BPO/BPM services. • Apparel & Textiles / Global Operations: Ansell. • Global Shared Services: Horizon Group USA. • Offshore Professional Services: KPMG. • Logistics Back-Office: GAC Services. • Infrastructure Developments: Projects underway include 2 residential developments, 3 mixed-development projects, a hotel, and a convention centre. • Revised Tax Framework: • Primary Businesses: Income tax holidays up to 15 years. • Secondary Businesses: Concessionary corporate income tax rate of 7.5% for 4 years. • Competitive Edge: Beyond incentives, investments are driven by high-speed internet, strategic location, international market access, and a lower cost of living compared to Dubai or Singapore. • National Impact: Investments into Port City are supplementary to foreign direct investment coming via the Board of Investment (BOI).

Construction & Real Estate
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🇱🇰 Invest Sri Lanka Investor Forum Sydney Draws Foreign & Diaspora Capital 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) hosted the "Invest Sri Lanka" Investor Forum on 17 August 2026 in Sydney to showcase the island's economic recovery and pitch capital market growth to foreign fund managers and the Sri Lankan diaspora. • Key Highlights & Credit Outlook: - Credit Ratings: Central Bank Governor Dr. Nandalal Weerasinghe noted all three major international agencies rate Sri Lanka at CCC, with a clear pathway toward an upgrade to B- as macroeconomic confidence improves. - Regional Advantage: Sri Lanka is positioning itself as an "India Plus One" platform for logistics, services, and manufacturing. - Foreign Investment Account (IIA): HNB confirmed Inward Investment Accounts (IIA) for overseas investors now process within 2 to 3 working days via streamlined documentation. - Port City Colombo: Allows investment in foreign currencies (e.g., AUD) with relaxed capital account regulations for cross-border capital flow. • Structural Reforms & Investment Avenues: - Focus on SOE restructuring, fiscal discipline, institutional reforms, and digital transformation. - Key opportunities emphasized in brownfield projects, venture capital, and broader capital market participation across South Asia. - Part of an ongoing Australian roadshow series running from 17–20 August 2026.

Capital Markets & Investment
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📈 MBSL Bolsters Capital Base via Rs. 806 Mn Rights Issue

• Capital Raising: Merchant Bank of Sri Lanka & Finance PLC (MBSL) successfully completed its Rights Issue in August 2026, raising Rs. 806 million in fresh capital. • Strategic Focus: • Strengthens the overall capital base and boosts capacity for core business growth. • Supports prudent capital management, financial resilience, and long-term shareholder value creation.

Banking & Financial Services
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📈 M.A. Yaseen Invests Rs. 5 Bn in UML and RIL

• Investment Breakdown: Founder shareholder M.A. Yaseen invested Rs. 5 billion to increase stakes in United Motors Lanka PLC (UML) and R I L Property PLC (RIL) based on provisional data. • UML Acquisition: Paid Rs. 3 billion to acquire an 11.3% stake (114 million shares at Rs. 27 each) from R.R. Takahashi, raising his total holding in the automotive firm to 24%. UML share price closed at Rs. 27.10 (up Rs. 0.10). • RIL Acquisition: Invested Rs. 2 billion for a 10.6% stake (85 million shares at Rs. 24 each), crossing his personal holding to 41% in the real estate company. RIL share price closed at Rs. 25.90 (up Rs. 0.50).

Capital Markets & Investment
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7. Regulatory & Policy News

**Awards & Recognitions**

Awards & Recognitions [National Business Excellence Awards -2026](https://m.youtube.com/watch?v=6KqeSQAMjVI) This video coverage highlights the ceremony and honors received by Sri Lanka's leading business enterprises at the National Business Excellence Awards 2026.

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Product & Service Launches / Business Expansions [MasterChef Sri Lanka Official Hospitality Partner Video](https://www.youtube.com/watch?v=yy5z6NYKgj0) This video highlights Cinnamon Hotels and Resorts' involvement in major international culinary initiatives and hospitality events, reflecting their strategic efforts to expand Sri Lanka's global profile.

Sustainability, ESG & Corporate Responsibility [Highlights of the Beach Clean-up Programme](https://www.youtube.com/shorts/pqIAYUD3_5o) This video provides visual coverage of the Bank of Ceylon beach clean-up initiative at Palangaturai Beach in Negombo mentioned in the news text.

**Politics & Government Impact**

Startups & Entrepreneurship

📈 EDB Drives Digital Pathways for Women Exporters

• Initiative Overview: The Sri Lanka Export Development Board (EDB), operating through the SheTrades Sri Lanka Hub, conducted an awareness programme titled "Using Social Media for Export Marketing" at the Divisional Secretariat Office, Panadura. • Knowledge & Capacity Building: Partnering with knowledge partner Foundation.lk, the event provided practical expertise in digital marketing, online business development, and social media tools to strengthen women-led enterprises and enhance their online visibility. • Market Reach & Export Growth: Targeted at women entrepreneurs seeking international expansion, the programme focused on using digital channels to connect with potential global customers, access foreign markets, and build readiness for export marketing and trade.

Economy-wide / Cross-sector
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🌱 EthicalX Opens Applications for 2026 Climate Innovation Cohort

EthicalX: Climate & Innovation Hub, a global initiative by Clima Trust and SLYCAN Trust, has officially opened applications for its 2026 cohort and affiliate network. Announced at the EthicalX Entrepreneurship Gathering in Colombo on August 6, 2026, the program aims to scale ethical and sustainable ventures in Sri Lanka and globally. • Overview & Key Focus: • Target sectors: Sustainable food systems, fashion & lifestyle, and creative communication. • Structure: Offers mentorship, technical support, policy linkage, and global networking opportunities. • Funding: Financial support for selected ventures, including lifestyle startups via a partnership with c.fuge. • Addressing Ecosystem Challenges: • Aims to bridge critical growth hurdles for early-stage Sri Lankan enterprises, such as limited access to finance, market restrictions, and gaps in technical expertise. • Connects grassroots entrepreneurs directly with public/private sector stakeholders and policymaking processes. • Track Record & Ecosystem Impact: • Founded in Sri Lanka in 2022, EthicalX has expanded globally to foster climate action, local economic empowerment, and sustainable diversification. • Supported alumni include local startups like Star Mushrooms and Eastern Soy Products, leveraging the hub for scaling and product development.

Economy-wide / Cross-sector
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📈 Ceylon Chamber to Host "Scale Up 2.0" National SME Forum 2026

The Ceylon Chamber of Commerce will host "Scale Up 2.0", the National SME Forum 2026, on 11 August 2026 at the Taj Samudra, Colombo, under the theme "Connected, Competitive, Ready to Grow". • Event Focus & Key Objectives: The forum is designed to address pressing operational challenges facing Sri Lanka's Small and Medium Enterprises (SMEs), helping them scale operations, secure financing, and expand market access. • Core Focus Areas: • Market Access: Creating pathways for SMEs to connect with larger enterprises and integrate into local and global value chains. • Standards & Competitiveness: Improving process credibility through quality standards and official certifications. • Sustainable Expansion: Enhancing investment readiness, business practices, and access to appropriate financing options. • Platform & Networking: • Features participation from policymakers, industry leaders, financial institutions, and business support organizations. • Includes a dedicated B2B networking segment for direct corporate engagement, partnership exploration, and resource sourcing.

Professional & Business Services
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📈 MAS Holdings Backs Syntetica’s $30M Series A for Nylon Recycling

French deep tech startup Syntetica secured US$ 30 Mn in Series A funding to scale technology for recycling complex textile waste. The investment round was led by Bpifrance’s Ecotechnologies 2 fund, with participation from Sri Lankan apparel & textiles giant MAS Holdings, lululemon, SWEN Capital Partners, EQT Ventures, and key family offices. • Funding & Expansion: The US$ 30 Mn round will fund Syntetica's first commercial demonstration facility in France in partnership with Michelin. The plant will scale the process from laboratory testing to processing hundreds of tonnes of textile waste annually. • Technical Breakthrough: Syntetica developed a proprietary process to recycle both Nylon 6 and Nylon 6,6 together from mixed waste without prior separation, overcoming a major technical hurdle in apparel & textiles circularity. • Market & Sector Relevance: - Global nylon production reached ~7 million tonnes in 2024, but recycled nylon accounts for only ~2% of the market due to processing challenges. - Over 80% of household textile waste is currently incinerated or landfilled. Syntetica targets post-consumer waste to build circular supply chains. - MAS Holdings leverages its manufacturing expertise to scale circular material solutions, reinforcing Sri Lanka's positioning in sustainable global apparel & textiles supply chains.

Apparel & Textiles
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Chalinda Abeykoon: Building Sri Lanka’s Global Startup Ecosystem 📈

• Overview: Venture capitalist Chalinda Abeykoon, co-founder at nVentures, highlights the evolution of Sri Lanka’s ICT/BPM and startup ecosystem—from early government-led initiatives to cross-border venture capital investments. • Startup Evolution: • Started Spiralation, Sri Lanka’s first tech startup incubator at ICTA, aiding ~75 tech companies in securing quality certifications and training 25,000+ students in international certifications. • Organized early island-wide hackathons, connecting youth across Jaffna, Kandy, and the South to foster local talent. • Investment Strategy & Exits: • Currently manages Singapore-domiciled VC fund nVentures to facilitate institutional exits, governance, and foreign capital inflows. • Focuses on founder-market fit and high-growth potential over traditional metrics. • Enables local startups to build globally relevant software and AI products directly from Colombo. • Creating a sustainable funding cycle: early founders from Fund 1 are now reinvesting as LP investors in Fund 2 to build local wealth.

Capital Markets & Investment
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Politics & Government Impact [Former BASL President claims proposed amendment aims to retain select judges for two more years](https://www.youtube.com/watch?v=pna81INtIx8) This video provides additional context from a former BASL president regarding concerns over the proposed constitutional amendment to extend judicial tenure.

Global & International Business [The World View From India with Dr. Raja Mohan](https://www.youtube.com/watch?v=7Vf9U7f9kKA) This video features Dr. C. Raja Mohan discussing India's evolving economic policy, regional relationships, and geopolitics in an increasingly fragmented global landscape.