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🚁 South Asia’s First VR Flight Simulator to Benefit Sri Lankan Aviation

• Regional Aviation & Training: Indocopters Private Limited and Loft Dynamics are launching South Asia's first dedicated Airbus H125 virtual reality (VR) full-motion flight simulator at Indocopters' headquarters in Greater Noida, India. • Benefits for Sri Lanka: The advanced facility will support local operators in Sri Lanka and across the region, boosting aviation & pilot training standards for high-risk operations, adverse weather, emergency procedures, and confined-area landings. • Fleet Context: More than 80 Airbus H125 aircraft are currently in service across South Asia (including Sri Lanka, India, Nepal, Bhutan, Bangladesh, and the Maldives). The initiative provides scalable training infrastructure as Airbus Helicopters and Tata Advanced Systems expand regional assembly in Karnataka. • Cutting-Edge Tech: The Loft Dynamics H125 TXi simulator features a 360-degree 3D VR environment, force-feedback controls, and a 6-degree-of-freedom motion platform, allowing pilots to safely rehearse complex scenarios and advance overall aviation MRO and operational readiness.

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🚁 South Asia’s First VR Flight Simulator to Benefit Sri Lankan Aviation

• Regional Aviation & Training: Indocopters Private Limited and Loft Dynamics are launching South Asia's first dedicated Airbus H125 virtual reality (VR) full-motion flight simulator at Indocopters' headquarters in Greater Noida, India. • Benefits for Sri Lanka: The advanced facility will support local operators in Sri Lanka and across the region, boosting aviation & pilot training standards for high-risk operations, adverse weather, emergency procedures, and confined-area landings. • Fleet Context: More than 80 Airbus H125 aircraft are currently in service across South Asia (including Sri Lanka, India, Nepal, Bhutan, Bangladesh, and the Maldives). The initiative provides scalable training infrastructure as Airbus Helicopters and Tata Advanced Systems expand regional assembly in Karnataka. • Cutting-Edge Tech: The Loft Dynamics H125 TXi simulator features a 360-degree 3D VR environment, force-feedback controls, and a 6-degree-of-freedom motion platform, allowing pilots to safely rehearse complex scenarios and advance overall aviation MRO and operational readiness.

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🇱🇰 Hayleys Agriculture Launches Sri Lanka's First Frozen Concentrated Coconut Water Facility 📈

• Facility Launch: Hayleys Agriculture Holdings Limited has officially opened Hayleys Nature Nest (Pvt) Ltd, marking the island’s first specialized manufacturing plant for frozen concentrated coconut water. • Sector Impact: Focuses on boosting value-added exports within the agriculture and coconut sectors by converting locally sourced coconut water into premium concentrate for international markets. • Economic & Local Benefits: Aims to increase national export earnings, drive agribusiness innovation, and support local coconut growers and regional farming communities.

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📈 HDFC Bank Expands Beyond Housing Finance Through Strategic Diversification

• Strategic Shift: State-owned, CSE-listed HDFC Bank of Sri Lanka has diversified its traditional housing finance model starting in 2024 to strengthen financial resilience, enhance sustainability, and adapt to evolving customer needs. • Portfolio Expansion & Product Innovations: - Diversified into leasing, gold advances, and personal loans in 2024. - Introduced Super Draft Leasing, a flexible vehicle financing product permitting early settlements or lump-sum payments within 4 to 24 months without penalties. - Launched Gold Purchase Loans, enabling customers to buy gold jewellery at current market prices through 12-month installment plans to hedge against rising gold prices. • Green Financing & Sustainability: - Entered green financing in 2025 in alignment with the Central Bank of Sri Lanka (CBSL) Green Taxonomy. - Introduced Green Personal Loans and Green Leasing options for solar energy systems, electric vehicles (EVs), energy-efficient appliances, and waste recycling. - Rolled out Go Green Savings Accounts and Green Wealth Fixed Deposits to channel customer deposits directly into eco-friendly initiatives. • Leadership & Future Outlook: Under new GM/CEO Hemal C. Lokugeegana, the bank aims to drive long-term, sustainable economic growth across Sri Lanka's banking & finance sector from 2026 onwards.

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🤝 AIA Sri Lanka Partners with SLASSCOM as Exclusive Insurance Partner

AIA Insurance Lanka has signed a Memorandum of Understanding (MoU) with the Sri Lanka Association for Software and Services Companies (SLASSCOM) to become its exclusive Insurance Partner, aiming to enhance corporate wellness and holistic wellbeing within the national ICT/BPM and knowledge technology community. • Key Highlights & MoU Details: - AIA Sri Lanka named exclusive Insurance Partner across SLASSCOM sponsored events. - Focuses on promoting physical, mental, and social wellness alongside employee benefits. - Engages the tech workforce through flagship initiatives including FIT HIT 2026, Megamind Quiz, and Ctrl+Alt+Rock. • Strategic & Economic Impact: - Targets sustainable workforce performance and resilience in Sri Lanka's fast-paced IT/BPM sector. - Deepens AIA’s presence in the national wellness ecosystem beyond traditional insurance products.

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📱 LB Finance Launches Sri Lanka's First In-App Virtual Debit Card via LB CIM

LB Finance PLC has introduced the LB CIM Virtual Debit Card in partnership with UnionPay International, expanding digital payment infrastructure in Sri Lanka. • Key Highlights & Innovations: • First local app to offer Tap to Pay (NFC) directly within the mobile application without third-party wallet routing. • Enables global e-commerce, international merchant payments, and cross-border QR transactions overseas. • Features consumer-presented QR generation for instant merchant scanning. • Platform Growth: • Annual transaction volume surpassed Rs. 300 Bn across over 6 Mn transactions. • Achieved 173% YoY growth in transaction volume and a 55% YoY increase in transaction count. • Platform app downloads have now exceeded 800,000. • National Impact: • Aims to boost financial inclusion and advance Sri Lanka's transition toward a cash-lite digital economy.

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🏥 Asiri Central Performs First Successful Liver Transplant

• Overview: Asiri Central Hospital has completed its first successful liver transplant, marking a major milestone in Sri Lanka’s private healthcare sector and expanding access to advanced local clinical care. • Economic & Clinical Impact: - Expands local availability of high-end specialized treatments for end-stage liver disease. - Potential to reduce foreign exchange outflows by minimizing the need for domestic patients to seek costly medical care overseas. - Highlights ongoing private capital investment in cutting-edge medical infrastructure, specialized technology, and high-skill retention within Sri Lanka's healthcare & medical services industry. • Execution: Handled by an interdisciplinary local team including transplant surgeons, hepatologists, anesthetists, and specialized nursing units.

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🛡️ LankaPay Partners as Silver Sponsor for 2nd Data Privacy Summit 2026

LankaPay, Sri Lanka’s national payment network, has partnered as a Silver Sponsor for the 2nd Data Privacy and Protection Summit 2026, scheduled for 23 July at Cinnamon Grand Colombo. Key details of the partnership and sector impact: • Digital Economy Impact: LankaPay processes real-time payment systems accounting for over 75% of Sri Lanka’s economic output, connecting major banks, financial institutions, and citizens. • PDPA Compliance: With the Personal Data Protection Act (PDPA) enforcement imminent, the summit focuses on data governance, proactive defense strategies, and regulatory compliance for public and private sector entities. • Cybersecurity Credentials: LankaPay was the first local entity to gain PCI-DSS certification and established FinCSIRT, the region's first financial sector cybersecurity unit, alongside OTP fraud prevention mechanisms with telecom providers. • Summit Leadership: Organized by CICRA and the Daily FT, the summit features LankaPay CEO Channa de Silva as a speaker to address evolving privacy standards, AI security risks, and digital trust.

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🏛️ LANKATILES Partners with Geoffrey Bawa Trust to Advance Sri Lankan Architecture

• Strategic Partnership: LANKATILES PLC has announced a strategic collaboration with the Geoffrey Bawa Trust to support knowledge-sharing initiatives, including the DesignTalk platform and the Annual Geoffrey Bawa Memorial Lecture. • Core Objective: The partnership aims to foster Sri Lanka’s architectural & design community, nurture future creative talent, and preserve the country's cultural and design identity. • Industry Impact: Aligns with LANKATILES' five-decade legacy in tile and surface solutions, reflecting corporate involvement in cultural preservation and built environment development. • Trust's Mandate: Established in 1982, the Geoffrey Bawa Trust continues to manage the late architect's archives while running public programs across architecture, environmental studies, and the arts both locally and internationally.

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🤖 Sri Lanka’s First Robot-Assisted Surgery Performed by Asiri Surgical Hospital

Healthcare & Technology milestone achieved as Asiri Surgical Hospital successfully completed Sri Lanka's first-ever Robot-Assisted Surgery on July 13, 2026. This pioneering technology allows local patients to access advanced care without traveling overseas. • Key Highlights & Capabilities: The advanced robotic surgical platform, utilized in over 60 countries, complies with European Regulatory Standards. Features a 3D high-definition vision system, providing consultant surgeons with crystal-clear imaging, greater precision, and enhanced control. Clinically proven to minimize post-operative pain, reduce blood loss, shorten hospital stays, and accelerate patient recovery times. • Strategic Impact: The introduction represents a major infrastructure investment by Asiri Health, Sri Lanka’s largest healthcare conglomerate. Expands local access to international care standards, elevating national clinical capabilities, patient safety, and measurable health outcomes. _Source: Asiri Surgical Hospital (Provisional Data)_

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🎸 Historic Sri Lanka–Japan Musical Collaboration Tour Announced for August 2026

Indian music sensation Aditya Narayan and Sri Lankan superstar Sanka Dineth are uniting for a landmark live concert tour, marking a first-of-its-kind cross-border musical partnership bridging South Asia and East Asia. The tour aims to strengthen cultural, artistic, and musical ties between Sri Lanka, India, and Japan. • Tour Schedule & Locations: • Sri Lanka Concert: 1 August 2026 at Havelock Grounds, Colombo (Presented by Salon Mybride). • Japan Concert: 16 August 2026 at Kashiwa Civic Cultural Hall, Japan (Organised by Japan Events). • Key Corporate & Industry Partners: • Production & Coordination: Sound Vision Event Management, a Sri Lanka-based production company handling overall international tour coordination. • Hospitality Partner: Cinnamon Life at City of Dreams, ensuring world-class accommodation and service for the landmark event. This historic initiative marks a new chapter in cross-border entertainment partnerships and international cultural promotion for Sri Lanka's entertainment and hospitality sectors.

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🚀 WIIN Institute of Technology Launches in Sri Lanka

The Wireless Intelligence and Innovation (WIIN) Institute of Technology was officially launched at TRACE Expert City, marking a key milestone in Sri Lanka's digital and industrial transformation. • Strategic Focus: Built on a "globally impactful, locally driven" framework, WIIN aims to strengthen the local technology ecosystem and support economic development through dedicated research and engineering. • Core Sectors: WIIN will deliver innovative technological solutions across 5 key economic sectors: telecommunications, energy, construction, financial technology (FinTech), and healthcare. • Capacity Building: The institute will offer industry-focused training programs in cutting-edge disciplines, including Artificial Intelligence (AI) and Machine Learning (ML), to upskill local professionals. • Global Collaborations: Established key partnerships with globally renowned institutions, including the 6G Flagship Programme of the University of Oulu (Finland), the Indian Institute of Technology Madras (IIT Madras), and IITM Pravartak, alongside local Sri Lankan university engineering faculties.

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📈 LANKATILES Launches Sri Lanka’s First Solar Reflective 'Cool Rooftop Tile'

• Product Launch: LANKATILES has introduced COOL ROOFTOP TILE®, the country’s first solar reflective rooftop tile engineered to combat indoor thermal retention amidst climbing temperatures. • The Technology: The tiles feature an advanced technology boasting a certified Solar Reflectance Index (SRI) of greater than 96, which actively reflects the majority of the sun’s infrared and ultraviolet rays back into the atmosphere before heat penetrates concrete slabs. • Key Benefits: • Cooler Spaces: Regulates baseline indoor temperatures by reducing heat transfer. • Energy Efficiency: Mitigates the reliance on air conditioning, lowering electricity utility bills. • Space Optimization: Keeps open-to-sky terraces and balconies comfortable underfoot during peak daylight hours. • Economic & Green Context: The innovation supports sustainable building practices by offering passive thermal defense, aligning with green building certifications demanding higher energy performance ratings, and helping reduce the urban heat island effect.

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Economic News

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📈 Sri Lanka Exports Exceed US$ 9 Bn in H1 2026

Sri Lanka’s combined merchandise and services exports reached US$ 9,012.24 Mn during H1 2026 (Jan–Jun), recording an 8% YoY growth compared to H1 2025. Total exports in June 2026 alone hit US$ 1,658.62 Mn (+12.53% YoY), driven by strong momentum across key sectors. • Overall Figures (H1 2026) • Total Exports: US$ 9,012.24 Mn (+8.00% YoY) • Merchandise Exports: US$ 7,073.31 Mn (+8.95% YoY) • Services Exports: US$ 1,938.94 Mn (+4.49% YoY) • Sector Performance (H1 2026) • Electrical & Electronic Components: Surged by 123.48% YoY to US$ 450.20 Mn, driven by wires, cables, and pumps. • Food & Beverages: Grew 24.45% YoY to US$ 347.13 Mn, led by processed food (+44.07%). • ICT/BPM: Grew 17.63% YoY to US$ 885.42 Mn, driving high-skilled employment and knowledge-economy expansion. • Coconut-based Products: Rose 14.59% YoY to US$ 614.93 Mn, with strong growth in activated carbon (+44.59%). • Rubber & Rubber-based Products: Rose 5.24% YoY to US$ 492.32 Mn. • Apparel & Textiles: Declined 6.07% YoY to US$ 2,442.09 Mn due to weak demand in the US and EU. • Tea: Dropped 5.69% YoY to US$ 700.80 Mn, impacted by lower exports to the Middle East. • Top Export Destinations (H1 2026) • US: US$ 1,436.85 Mn (+0.13% YoY) — remains largest market. • India: US$ 688.47 Mn (+36.16% YoY) — second-largest market. • UK: US$ 434.44 Mn (-10.23% YoY). • Turkey: Exceptional growth of 98.36% YoY to US$ 123.20 Mn, boosted by tea exports (+139.16%). _Note: Service exports, Gems & Jewellery, and Petroleum Products for June 2026 are based on provisional and estimated EDB data._

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📉 Central Bank Keeps Overnight Policy Rate Unchanged at 8.75%

• Monetary Policy Decision • Overnight Policy Rate (OPR) maintained at 8.75% following the Monetary Policy Board meeting. • Decision reflects previous policy tightening in May 2026 and its ongoing transmission to moderate credit growth. • Domestic Inflation & Growth • Headline inflation accelerated to 6.8% (y-o-y) in June 2026 due to higher domestic energy and food prices. • Inflation expected to remain above the 5.0% target in the near term before gradually returning to target levels. • Strengthening demand conditions and supply-driven shocks continue to affect price levels, though medium-term inflation expectations remain anchored. • External Sector & Reserves • Gross Official Reserves stood at US$ 6.45 Bn at end-June 2026 amid ongoing foreign debt service obligations. • Current account deficit recorded since April 2026, driven by higher fuel import costs widening the merchandise trade deficit alongside slowing tourism earnings. • External sector pressures cushioned by resilient workers' remittances and recent policy measures stabilizing the Sri Lanka rupee.

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📈 World Bank Warns Sri Lanka to Reopen Trade & Accelerate Reforms

• Key Issues & Growth Trends World Bank Lead Economist Dr. Harsha Aturupane warned that Sri Lanka risks falling behind regional peers due to two decades of anti-export policies. • Merchandise exports grew sluggishly from US$ 8.6 Bn in 2010 to US$ 12.8 Bn in 2024, representing an average annual growth of only 3.4%. • Global Value Chain (GVC) participation stands at just 8.1%, falling significantly behind regional competitors like India (26%) and Vietnam (34%). • Sector Vulnerabilities & Key Exports • Sri Lanka remains dependent on a static export basket dominated by tea, apparel & textiles, coconut, and rubber. • The ICT/BPM sector—the country's second-largest export industry—faces severe disruption from AI unless firms rapidly shift to higher-value services. • Structural & Cost Bottlenecks • High domestic production costs driven by tariffs, non-tariff barriers, taxation, and elevated electricity rates undermine market competitiveness. • Loss-making State-Owned Enterprises (SOEs) like SriLankan Airlines and Ceylon Petroleum Corporation impose substantial economic costs. • Cumbersome administrative procedures, public sector rent-seeking, and lengthy legal processes (often taking a generation to resolve commercial disputes) discourage investment. [State of Business Analysis](https://www.youtube.com/watch?v=P5WwzgRoDpI) This broadcast offers additional perspective on Sri Lanka's current economic climate and private sector performance discussions.

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📈 Policy Shift Needed to Scale Sri Lankan SMEs for Global Competition

A strategic pivot from survival-based welfare to export-oriented competitiveness is vital to transform Sri Lanka's small and medium-sized enterprises (SMEs) into drivers of national prosperity. • Structural Challenges & Current Limitations • Current policies focus on welfare, subsidized finance, and domestic survival rather than scaling businesses globally. • Heavy reliance on import protection and para-tariffs has sheltered domestic firms, reducing incentives for innovation and productivity. • Lack of institutional continuity stalls early export milestones (e.g., historical poultry exports to Oman or fresh produce initiatives). • Key Sector & Export Opportunities • Potential exists to move beyond raw supply to foreign buyers by building domestic direct-export capabilities in sectors like agriculture (fruits and vegetables) and poultry. • High-growth opportunities lie in integrating ICT/BPM, digital adoption, artificial intelligence, and automated manufacturing into local production lines. • International Benchmarks & Strategic Action • Global models—such as China's "Little Giants" clusters, India's digital liquidity platforms (ONDC, TreDS), and Singapore's tech roadmaps—demonstrate the value of treating SMEs as strategic assets. • Sri Lanka must leverage economic diplomacy, utilizing embassies to drive export partnerships, attract tech transfers, and build long-term supply chain access rather than relying on brief ceremonial successes.

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📈 IMF Highlights Oil Prices and Weak Monsoon as Risks to India’s FY27 Growth

• Key Growth Forecasts: The International Monetary Fund (IMF) cut India’s GDP growth forecast for 2026/27 by 10 bps to 6.4%, while raising the 2027/28 forecast by 20 bps to 6.7%. • Primary Downside Risks: • Energy Shocks: A widening Middle East conflict and potential disruptions in the Strait of Hormuz are driving up crude oil prices. As India imports ~80% of its oil, high energy costs threaten growth and fuel inflation. • Monsoon & Agriculture: Potential El Niño effects and a delayed monsoon pose further risks to output, impact not yet fully captured in current projections. • National Accounts Reassessment: The IMF will reassess India’s national accounts statistics—previously rated 'C' due to methodological weaknesses—following the release of back-series data tied to the updated 2022/23 base year expected later in 2026. Recent updates include expanded deflators, double deflation in manufacturing, and modernized digital data collection.

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📈 Sri Lanka Headline Inflation (NCPI) Rises to 6.5% in June 2026

Sri Lanka’s National Consumer Price Index (NCPI) headline inflation accelerated to 6.5% YoY in June 2026, up from 5.4% in May, continuing an upward trend seen since early 2026. The All-Items Index reached 222.3, marking a 1.6% Month-on-Month (MoM) increase. • Overall Figures: - Headline Inflation: 6.5% YoY (vs 5.4% in May) - All Items Index: 222.3 (+1.6% MoM) • Sector Breakdown: - Food: Index jumped to 250.5, rising 2.5% MoM (up from May) and 3.3% YoY. Food price surges drove the majority of the monthly increase, critical for household consumption and basic cost of living. - Non-Food: Index stood at 204.1 (+0.9% MoM), but remains the primary driver of broader annual price increases at 9.3% YoY. Key factors include alcoholic beverages, tobacco, narcotics, and household equipment maintenance.

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📈 Sri Lanka’s Primary Surplus: Fiscal Discipline vs Long-Term Growth

• Overview: Sri Lanka achieved a positive primary budget surplus post-2022 economic crisis as revenue exceeded non-interest expenditure, restoring macroeconomic stability and creditor confidence. • The Economic Trade-Off: Fiscal consolidation relies heavily on indirect taxation and cost-of-living increases. This has compressed disposable incomes, reduced domestic savings, and constrained the middle class, threatening the cycle of investment and productivity. • Strategic Priorities: - Capital Formation: With limited public investment and modest FDI, the private sector must drive long-term productive investment over short-term commercial activity. - Human Capital: High migration of skilled professionals jeopardizes economic competitiveness, requiring strategic funding in education, technology, and digital infrastructure. - Structural Reform: Transitioning to sustainable, investment-led growth requires shifting away from high indirect tax reliance, modernizing tax administration, and strengthening state institutional capability.

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📊 Sri Lanka's Q1 2026 GDP Grows 5.1% Amid Widening Trade Deficit

• Overall Growth & Money Supply Real GDP expanded 5.1% YoY in Q1 2026, supported by services (+2.0 pp) and industry (+2.6 pp), while agriculture contributed 0.1 pp. Consumption drove expansion, with transactional M1 money supply rising 5.5% and currency in circulation up 10.4%. • Trade Mismatch & Imports Import growth (+18.1%) outpaced export growth (+3.4%), widening the trade deficit from US$ 1.54 Bn to US$ 2.31 Bn. • Merchandise Exports: US$ 3.46 Bn (+3.4% YoY) • Merchandise Imports: US$ 5.77 Bn (+18.1% YoY) • Fuel & energy imports surged 102.9% YoY to US$ 939 Mn. • Personal vehicle imports jumped 80.4% YoY to US$ 311 Mn. • Combined, fuel and vehicles consumed 36% of total export revenue. • External Inflows & Buffers • Workers' remittances grew 27.7% YoY to US$ 2.26 Bn, acting as the primary buffer for the current account. • Foreign Direct Investment (FDI) remained subdued at US$ 184 Mn in Q1 2026 (~12x lower than remittances). • Gross official reserves stood at US$ 6.8–6.9 Bn, with inflation at 5.4% (April 2026). Total IMF disbursements reached US$ 2.4 Bn following May 2026 reviews. • Key Vulnerability Every US$ 10/bbl increase in oil prices adds US$ 120–150 Mn per quarter to the import bill. To curb consumer import credit, CBSL raised the policy rate by 100 bps to 8.75% in May 2026.

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📈 Sri Lanka Needs to Look Beyond Financial Stability & Inflation, Experts Warn

At the SLEA-GCF economic forum, Central Bank of Sri Lanka (CBSL) and industry leaders highlighted that true financial resilience must move past traditional metrics like capital and liquidity to tackle permanent global and structural risks. • Policy & Regulatory Shifts CBSL warns that geopolitical tensions, climate risks, and cyber threats are now permanent features of the operating environment. The Central Bank of Sri Lanka Act No. 16 of 2023 has enhanced institutional independence and formally mandated financial stability alongside inflation control. Dynamic, forward-looking supervision via stress testing and scenario analysis is urged over historical, backward-looking indicators. • Credit & Real Economy Priorities Economists warn against excessive risk aversion post-crisis; financial institutions must actively deploy credit to productive sectors to avoid stalling rural and semi-urban recovery. Rapid credit growth must be monitored carefully, as it can temporarily mask underlying asset quality and non-performing loan (NPL) ratios. • Financial Inclusion & Climate Risks Panelists highlighted a critical gap: nearly 50% of Sri Lanka's economically active population still lacks access to formal finance. Greater collaboration is demanded between banks and non-bank financial institutions to mobilize climate finance, protect agricultural value chains, and expand inclusive credit.

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📈 Credit Rebound Enters Rate Reality Check

Sri Lanka’s post-crisis credit recovery faces its first major test following a 100 bps policy rate hike in May 2026. While tighter monetary policy aims to tame inflation and stabilize the exchange rate, it is expected to moderate private sector lending momentum. • Overall Growth & Credit: The economy expanded by 5.1% in Q1 2026. Private sector credit surged Rs. 485.4 Bn in Q1 (up 24% YoY) and accelerated by 79.1% YoY in May as borrowers rushed ahead of the rate hike. However, credit-to-GDP remains below pre-crisis levels. • Sector Performance: Q1 recovery was broad-based across all major segments, with Industry leading growth at 7.2%, followed by Services at 3.4%, and Agriculture at 1.1%. Production indicators remain resilient, with manufacturing and construction PMIs in expansionary territory, and cement production up 21.5% YoY during Jan-May. • Fiscal & External Balance: Strong tax revenue growth (+36.4% YoY in Q1) driven by vehicle import-related taxes pushed the budget surplus to Rs. 197.3 Bn (Jan-May) from a deficit last year. The current account had slipped into deficit in Q1 due to a surge in fuel and vehicle imports (US$ 1.8 Bn), offsetting tourism earnings and workers' remittances (up 26.5% YoY to US$ 2.3 Bn). Tighter credit is projected to lower import pressure, steering the current account back to a surplus by June.

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Sri Lanka’s Economic Recovery Faces Fresh External Shocks 📈

• Growth & Vital Signs: Sri Lanka's economy expanded 5.1% YoY in Q1 2026, up from 4.8% in Q4 2025—the fastest growth rate since the crisis. Inflation remains tamed to low single digits, and the government recorded a primary budget surplus. The IMF released a US$ 695 million tranche of its US$ 3 Bn bailout. • Currency & Reserves Pressure: Despite headline improvements, the rupee depreciated over 12% in 12 months, slipping from ~Rs. 296/USD in mid-2025 to ~Rs. 335-336/USD by late June 2026. Gross official reserves stood at US$ 6.77 Bn in April (sufficient for 2-3 months of imports), while the year-end IMF reserve target of US$ 8.9 Bn faces pressure. • Dual External Shocks: Cyclone Ditwah severely disrupted central tea growing regions (reducing output by 1M kg) and slowed the key December tourist season. Ongoing West Asia tensions pushed crude oil prices up, forcing fuel rationing in March. Consequently, the IMF slashed the country's 2026 growth forecast to 3.0% (down from 5.0% in 2025). • Dollar Earners Under Strain: Total export earnings reached a record US$ 17.25 Bn in 2025, yet remained insufficient to offset external shocks: Tea: Earned US$ 1.5 Bn in 2025 (up 5%), but recovery is threatened by cyclone damage. Tourism: Earned US$ 3.2 Bn from 2.36M arrivals, but average spending per tourist fell, leading to a 15% YoY decline in December revenue. Apparel & Textiles: Exceeded US$ 5 Bn for the first time, but faces a potential 12% drop in US exports due to a new 20% tariff. ICT/BPM: Listed as a growth driver, but a potential global AI tech correction poses a major capital flight risk.

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📈 Sri Lanka’s Economic Recovery: Focus Shifts from Macro Headlines to Household Budgets

While Sri Lanka has made remarkable progress in restoring macroeconomic stability, a "cost-of-living recession" persists as permanently higher prices continue to pressure household budgets. • Macro Achievements vs. Micro Reality: Foreign exchange reserves have strengthened, inflation has retreated sharply from its peak (above 70%), and progress on sovereign debt restructuring has restored international confidence. However, cumulative inflation has severely eroded the purchasing power of wages for public servants, pensioners, and informal-sector workers. • Sector Overviews & Drivers: The recovery has depended heavily on tourism, worker remittances, and international financial assistance. True long-term prosperity and sustainable wage growth now require structural shifts toward higher productivity, advanced manufacturing, digital services, and knowledge industries. • Key National Outlook: Escaping the official poverty line has not guaranteed financial security, leaving many families fragile against economic shocks. Turning stability into prosperity by 2028 and beyond will depend on private sector investment in technology, stronger university-industry collaboration, and robust support for small and medium-sized enterprises (SMEs) to drive high-value exports.

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Financial & Investment News

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

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

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

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

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

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

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

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

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SEC & CSE to Host Second Investor Forum on 9th July 📈

• Event Details: The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) will host a free investor forum conducted in English on 9th July 2026 at 5:30 p.m. at the CSE Trading Floor (WTC, Colombo 1). It targets potential investors in the greater Colombo area looking to invest in the stock market or Unit Trusts. • Participant Incentives: Stockbrokers and Unit Trust firms will be available for account opening from 9:00 a.m. onwards. The first 200 participants opening accounts on the day will receive an investment coupon gifted by SEC and CSE. • Market Growth Context: The forum comes amid a remarkable six-year capital market expansion. The All-Share Price Index (ASPI) rose 360% from 4,846 points in May 2020 to 22,310.80 points by May 2026, marking a Compound Annual Growth Rate (CAGR) of ~28.98%, with capital gains remaining tax-free. • National Initiative: This is part of an ongoing island-wide initiative to enhance financial literacy, broad-base investor participation, and leverage the CSE’s nationwide branch network. Feature presentations will include insights from the SEC, CSE, and the Central Bank of Sri Lanka (CBSL).

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📈 Swedfund Invests US$ 15 Mn in CDB to Boost Sri Lankan MSMEs and Job Creation

Swedfund, the Swedish Development Finance Institution, has invested US$ 15 million in Citizens Development Business Finance (CDB) to expand access to long-term financing for micro, small, and medium-sized enterprises (MSMEs) in Sri Lanka. • Overall Funding: A US$ 15 million capital injection aimed at addressing the severe constraints on long-term capital resulting from Sri Lanka's recent economic challenges. • Target Sector: MSMEs, which account for a significant share of national employment and economic activity but heavily lack formal financing, especially in rural areas. • Women's Economic Empowerment: 30% of the total financing is strictly dedicated to supporting women-owned or women-led businesses. The investment aligns with the global 2X Challenge criteria. • Strategic Impact: Beyond capital, the partnership will help CDB strengthen its environmental and social risk management systems alongside expanding its climate-related lending practices.

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

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

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Market News

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📈 Global Markets Rebound as Chipmakers Lead Asian Equity Rally

• Market Overview: Asian equities jumped on Wednesday following a U.S. market recovery. MSCI Asia-Pacific (ex-Japan) rose +1.2%, led by South Korea’s Kospi (+6.0%) and Japan’s Nikkei 225 (+1.9%), while S&P 500 futures edged -0.1% lower. S&P 500 previously gained +0.9%, ending a three-day slide. • Sector Performance: - Tech & Semiconductors: Strong rebound across semiconductors and global ICT/BPM technology sentiment after South Korean chip exports nearly tripled in early July and Taiwanese export orders beat estimates. - Pharmaceuticals: U.S. announced generic drug tariffs set at 0% for two years starting August 1, rising to 100% in year three and 200% thereafter. - Energy & Commodities: Brent crude rose +0.6% to $91.55/barrel as Red Sea tanker diversions due to Houthi threats added supply concerns. Gold increased +0.5% to $4,097.67. • Monetary & Currency Trends: - U.S. Dollar: Dollar Index held near a one-week high at 101.20, while easing -0.1% against the Yen to 163.06. - Interest Rates: The U.S. Federal Reserve is expected to keep key interest rates steady for the rest of 2026, with the 10-year U.S. Treasury yield at 4.628%. • Digital Assets: Bitcoin traded up +0.3% at $66,611.73, while Ether gained +0.7% to $1,936.18.

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📈 Global Energy Shock: Oil Prices Rise as US-Iran Conflict Escalates

• Market Prices & Movements: • Brent Crude: Up 0.55% (+US$ 0.50) to US$ 91.51/bbl following a 5-week high. • WTI Crude: Up 0.36% (+US$ 0.30) to US$ 84.64/bbl in low-volume trading. • Supply & Security Drivers: • U.S. strikes on Iranian military targets continued for the 11th consecutive night, while Kuwait intercepted incoming drones. • Threat of shipping disruptions grew as Houthis threatened Saudi oil vessels in the Bab el-Mandeb Strait and declared a naval blockade. • Traffic through the Strait of Hormuz declined sharply, increasing risks for global crude oil and energy import security. • Fiscal & Inventory Data: • U.S. military operations in Iran have cost US$ 37.5 Bn to date (+US$ 8 Bn from previous estimates). • API data showed a rise in U.S. crude and distillate inventories, alongside a drawdown in gasoline stockpiles.

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📈 Secondary Bond Market Yields Rise Ahead of Key Monetary Policy Announcement

• Market Sentiment: Yields in the secondary bond market edged higher amid persistent selling pressure and a wait-and-see, risk-off approach by traders prior to the upcoming Monetary Policy Announcement. Transaction volumes were primarily driven by block trades at elevated yield levels. • Bond Yield Movements: • 01.07.28 maturity traded at 10.70% • 15.09.29 maturity traded at 11.15% • 15.10.30 maturity traded at 11.60%–11.65% • 15.03.31 & 01.12.31 traded up to 12.00% • Long-term 15.06.34 maturity reached 12.25% • Upcoming T-Bill Auction: Government securities auction scheduled today offers Rs. 140 Bn (Rs. 60 Bn for 91-day, Rs. 50 Bn for 182-day, and Rs. 30 Bn for 364-day tenors), falling below the estimated Rs. 153.22 Bn maturing debt. • Money Market & Liquidity: Net liquidity surplus was recorded at Rs. 142.36 Bn. Overnight call money and Repo weighted average rates stood at 8.97% and 9.00%, respectively. • Forex Market: The USD/LKR spot rate closed slightly lower at Rs. 336.35/336.50 compared to the previous close of Rs. 336.25/336.30, with a daily trading volume of US$ 74.25 Mn.

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Mixed Investor Sentiments Hit Colombo Bourse 📈

• Market Overview: The All Share Price Index (ASPI) fell 0.29% (-62.37 pts) to 21,145.73 due to broad-based selling pressure, driven partly by geopolitical uncertainties. Conversely, the blue-chip S&P SL20 index edged up 0.03% (+1.79 pts) to close at 5,945.01. Market breadth was negative, with 133 decliners against 74 gainers. • Turnover & Foreign Inflows: Daily turnover crossed Rs. 3.2 Bn for the first time in a month, with 38.5 Bn shares traded. Net foreign buying continued, generating a positive inflow of Rs. 79.8 Mn. • Sector Breakdown & Key Crossings: • Food & Staples Retailing: Dominated total market turnover with a 71% share, heavily boosted by a massive Rs. 2.3 Bn crossing in Cargills (representing 69.1% of market turnover). The sector index gained 0.15%, with Cargills closing up 25 cents at Rs. 630. • Food, Beverage & Tobacco & Banking: Jointly accounted for 15% of turnover. Melstacorp saw key crossings, ending down Rs. 1 at Rs. 181 despite a 0.43% rise in its sector index. Major banking crossings included Nations Trust Bank, which fell 50 cents to Rs. 305. • Key Contributors & Declines: The main negative drags on the ASPI included Ceylinco Insurance, Commercial Bank, Rich Pieris, Cargo Boat Development, and Harischandra Mills. Notable losses were also recorded in Hatton National Bank (-Rs. 2 to Rs. 384) and Softlogic Life Insurance (-Rs. 2.40 to Rs. 81.10).

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📈 Cargills Block Trades Push CSE Turnover to Rs. 3.27 Bn

• Market Indices: - All Share Price Index (ASPI): Closed down 62.37 points at 21,145.73, marking its third consecutive daily decline. - S&P SL20 Index: Edged up by 1.79 points to finish at 5,945.01. • Overall Turnover: - Total CSE turnover surged to Rs. 3.27 Bn, driven by significant off-market block trades despite wider index weakness. • Top Stock & Sector Contributors: - Cargills (Ceylon) PLC: Dominated trading in the food & staples retailing sector, generating Rs. 2.88 Bn in total turnover (Rs. 2.26 Bn via off-market crossings and Rs. 62 Mn in regular market trades). - Melstacorp PLC: Emerged as the second-largest contributor to turnover, recording Rs. 181 Mn in traded shares.

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📉 Mideast Mediation Eases Oil Prices as Asian Stocks Recover 📈

• Global Market Overview: Asian equities gained ground following three consecutive losing sessions, buoyed by diplomatic mediation efforts in the Middle East that cooled rising energy prices. MSCI's Asia-Pacific index outside Japan rose 0.25%, while Japan's Nikkei surged over 1% and South Korea's KOSPI jumped nearly 3%. • Commodities & Energy Outlook: Brent crude futures dropped 0.38% to US$ 88.88 per barrel after hitting a multi-week high of US$ 91.42. Easing prices came amid news of a proposed 10-day ceasefire between the U.S. and Iran, despite ongoing geopolitical risks including threats of a naval blockade on Saudi Arabia by Yemen's Houthis. • Technology & ICT Sector Impact: Investors remain cautious regarding the global ICT/BPM and semiconductor trade. Despite strong demand for AI hardware and infrastructure, lofty Q2 earnings expectations from tech giants like Alphabet and Intel are testing market valuations amidst broader macroeconomic headwinds like elevated interest rates. • Foreign Exchange & Monetary Indicators: The U.S. dollar held steady, with the Euro at US$ 1.14 and the Japanese Yen at 162.51. U.S. 2-year Treasury yields stood at 4.206%, with traders pricing in 33 basis points of Federal Reserve rate hikes this year.

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🛢️ Global Oil Prices Dip Amid US-Iran Ceasefire Mediation

• Market Figures: • Brent crude futures fell 78 cents (-0.9%) to US$ 88.44/bbl. • US WTI crude dropped 73 cents (-0.9%) to US$ 82.50/bbl (Sept contract down 0.5% to US$ 82.07/bbl). • Diplomatic Push vs. Military Tension: • De-escalation hopes: Prices softened as mediators proposed a 10-day ceasefire to restore the June 17 MoU. • Ongoing conflict: The U.S. and Iran exchanged fresh strikes, while Yemen's Houthis threatened a naval blockade on Saudi Arabia, raising supply disruption risks. • Supply & Logistics Risks: • Strait of Hormuz: Vessel crossings dropped further following fresh attacks and a projectile hit on a commercial tanker. • US Inventory Outlook: Preliminary estimates indicate a drop in US crude and gasoline stockpiles, with distillate stocks expected to rise.

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📉 CSE Opens Week in Red; ASPI Drops to 3-Month Low

• Market Performance: - ASPI: Down 0.92% (-197.31 pts) to 21,208.10. - S&P SL20: Down 0.94% (-56.46 pts) to 5,943.22. - Market breath was heavily negative, with 193 counters ending in the red against 32 gainers. • Turnover & Foreign Inflows: - Total market turnover reached over Rs. 2.6 Bn across nearly 66.5 Mn shares. - Foreign investors remained net buyers, recording a net inflow of Rs. 23.5 Mn. • Key Drags & Sentiment: - Main decliners contributing to the ASPI drop: DIAL, COMB, RICH, JKH, and CARS. - Investor sentiment remained subdued due to ongoing geopolitical tensions in the Middle East. - High-net-worth (HNW) participation was active via negotiated crossings, while retail participation was at average levels. • Sector Breakdown: - Food & Staples Retailing: Led daily turnover, contributing 43%. - Food, Beverage & Tobacco & Capital Goods: Combined contribution of 27%.

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📉 Colombo Bourse Ends Lower Despite Strong Turnover (July 20, 2026)

The Colombo Stock Exchange (CSE) witnessed a sharp decline in its benchmark indices today, breaking a low-turnover streak with a significant rebound in market activity based on provisional data. • Market Indices: - The All Share Price Index (ASPI) fell by 197.31 points (0.92%) to close at 21,208.10. - The S&P SL20 Index declined by 56.46 points to settle at 5,943.22. • Turnover & Trading Volume: - Daily turnover recorded a strong rebound to Rs. 2.63 Bn, up significantly from the 15-month low of Rs. 722 Mn recorded on Friday (July 17). • Key Drivers & Sector Movements: - The day's high turnover was heavily driven by large block trades (crossings) in major consumer, retail, and manufacturing counters: CT Holdings (Rs. 561 Mn), Cargills (Ceylon) (Rs. 544.95 Mn), and Lanka Milk Foods (Rs. 232 Mn). • Market Sentiment: - Overall investor sentiment remained negative, with 179 listed companies closing lower. - The drag on the ASPI was primarily led by price losses in heavyweights across the telecommunications, banking, and diversified financials/conglomerates sectors, specifically Dialog Axiata, Commercial Bank, Richard Pieris & Company, John Keells Holdings, and Carson Cumberbatch.

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📈 CSE Ends Week in Red as Turnover Hits 65-Week Low

The Colombo stock market failed to sustain an early trading rally, closing the week in negative territory with trading activity plunging sharply. Overall Market Figures • The All Share Price Index (ASPI) dropped by 1.7% (360.56 points) over the week, closing at 21,405.41. • The active S&P SL20 index fell by 1.3% (77.78 points) to end at 5,999.68. • Weekly turnover collapsed to Rs. 722.64 Mn—marking the lowest trading turnover since April 17, 2025. • Foreign investors remained net sellers, recording a net foreign outflow of Rs. 108.4 Mn. Sector & Stock Breakdowns • Banking: Led daily turnover with a 26% share. Sampath Bank was the top turnover driver for the sector, which managed a marginal index gain of 0.18%, with its share price closing flat at Rs. 137. • Capital Goods: Contributed heavily to market turnover via John Keells Holdings (JKH). The sector index decreased by 0.12%, with JKH moving down to Rs. 19.90. • Food, Beverage & Tobacco: Combined with capital goods to contribute 32% to the daily turnover. Lanka Milk Foods closed flat at Rs. 84.50. • Top decliners dragging the ASPI down included LOLC, JKH, Cargills, Pan Asian Power (PKME), and NDB. Market Sentiment • Investor sentiment remained subdued due to ongoing geopolitical tensions and selling pressure, with high-net-worth (HNW) and retail investors adopting a "wait-and-see" approach ahead of the upcoming quarterly earnings season.

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📉 CSE Turnover Plunges to 15-Month Low of Rs. 722 Million

Trading activity at the Colombo Stock Exchange (CSE) remained highly subdued on Friday, July 17, 2026, with daily market turnover hitting its lowest level in over a year. • Market Turnover: Fell to Rs. 722 million, marking the lowest daily turnover recorded since April 17, 2025 (Rs. 792 million). This also marks the first time since April 22, 2025, that the daily turnover has slipped below the Rs. 1 billion threshold. • Index Performance: Both benchmark indices closed in the red. The All Share Price Index (ASPI) declined by 42.16 points (-0.20%) to close at 21,405.41, while the S&P SL20 Index fell by 5.31 points (-0.09%) to close just under the key threshold at 5,999.68. • Market Sentiment: The record-low turnover reflects a highly cautious and quiet session, pointing to a temporary slowdown in active trading across key sectors on the exchange.

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📈 Asian Tech Selloff: Global AI correction triggers market rout

A sharp correction in global technology stocks has triggered an Asian market selloff, fueled by doubts over the sustainability of massive AI investments and leveraged retail trading. • Market Impact & Benchmarks Equity benchmarks in Japan (Nikkei 225) and Taiwan plummeted up to 6% on Friday (July 17). Japan’s Nikkei 225 entered official correction territory, down over 10% since its June 25 peak. High-profile chipmakers like Samsung and SK Hynix faced severe momentum-selling pressure. • Sector Analysis & Driving Factors AI & Semiconductors: Analysts cite profit-taking in crowded AI and chip stocks. Rising US yields and hawkish Fed signals triggered initial cash-outs. Leverage & Valuation: Leveraged retail positions and quant-fund activity have amplified volatility. Fundamental vs. Technical: Some analysts view this as a healthy, technical unwinding of froth rather than a shift in long-term demand for ICT/BPM hardware or semiconductor fundamentals. • Economic Implications Uncertain Outlook: Highly leveraged tech investments funded by private and bank debt are facing heightened scrutiny over capital expenditure (capex) returns. Alternative Assets: Safe havens like gold and silver also faced selling pressure, indicating broad capital repositioning. _Note: Market reactions are ongoing as volatility moves to Western trading sessions._

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Politics & Government Impact

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📊 PM Emphasizes Efficient Public Sector and Accounting Standards for Sustainable Growth

At the CMA Sri Lanka National Management Accounting Conference 2026, Prime Minister Dr. Harini Amarasuriya stressed that an efficient public sector paired with an accountable management accounting system is vital for Sri Lanka's post-crisis economic consolidation. Key highlights from the address: • Economic Recovery: Sri Lanka is steadily emerging from its financial crisis, showing active progress across the manufacturing, tourism, and financial services sectors. The current goal is to build long-term competitiveness and resilience. • Public Sector Accountability: Addressing past lapses where government entities failed to submit annual financial reports, the PM warned that legal action will now be enforced against institutions and officials violating reporting standards or deadlines. • Data-Driven Governance: Public administration decisions must rely on scientific analysis and evidence rather than personal agendas. Accounting frameworks must also adapt to account for environmental degradation and social costs. • Education & Professional Development: Upcoming A/L curriculum reforms will integrate vocational training and a one-year internship. professional bodies like CMA Sri Lanka are called to support these initiatives. • Institutional Support: CMA Sri Lanka awarded 100 full scholarships for public sector officers to pursue the CMA Management Accounting Programme to upskill civil service capacity.

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📈 Cabinet Approves Transfer of 60 Provincial Roads to RDA for Urgent Rehabilitation

• Decision Overview: The Cabinet of Ministers has approved appointing an official committee to recommend transferring the rehabilitation of around 60 urgent provincial and local government roads to the Road Development Authority (RDA). • Background: The move addresses widespread public and official requests at District Coordination Committees for RDA intervention on deteriorated roads currently outside its jurisdiction and beyond local authority capacity. • Committee Scope: Representatives from key ministries, the Finance Commission, provincial authorities, and the RDA will study and submit recommendations covering legal, administrative, and institutional arrangements. • National Context: While the RDA conventionally manages national highways (A and B class roads, expressways, and bridges), this proposed mechanism aims to fast-track critical infrastructure improvements across local road networks.

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📈 SLTB Fleet Renewal Plan Revised to 600 AC Deluxe Buses

• Project Cost: Total investment increased to Rs. 21.6 Bn, up from the initial Budget allocation of Rs. 14.4 Bn (additional funding of Rs. 7.2 Bn). • Funding Timeline: Rs. 1.8 Bn required as an advance payment in 2026, with the remaining Rs. 5.4 Bn allocated across 2027-2028. • Scope Changes: Procurement shifted from 600 standard buses to 600 air-conditioned deluxe buses for intercity and long-distance routes. • Strategic Objectives: Aligns with the Road Safety Plan 2025-2026 to enhance passenger comfort, service quality, and road safety standards across the public transport sector.

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🏛️ President Reviews Prison Reforms & Infrastructure Expansion Plans

• Governance & Security: President Anura Kumara Dissanayake chaired a high-level meeting at the Presidential Secretariat to address operational, structural, and security challenges within the Sri Lankan prison network. • Capacity Management: Key proposals focused on expanding existing prison infrastructure and introducing alternative measures to mitigate severe overcrowding across correctional facilities. • Stakeholder Collaboration: Discussions involved key decision-makers, including the Minister of Justice & National Integration, Minister of Public Security, Justice Ministry Secretary, and the Commissioner General of Prisons.

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📈 UK Cuts VAT on Electricity Bills to Ease Cost of Living

• Policy Decision: UK Prime Minister Andy Burnham has ordered the removal of Value Added Tax (VAT) on electricity bills, reducing the tax rate from 5% to 0% to address the growing cost of living. • Household Savings: The tax cut takes effect on 1 October and is expected to save a typical UK household around £45 per year. • Energy Sector Requirements: Energy suppliers are instructed to pass the full tax savings onto all residential customers, including those on fixed tariffs. • Regional Coverage: The reduction directly covers England, Scotland, and Wales. Equivalent funding will be provided to Northern Ireland to account for its separate energy regulatory framework.

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Note: The provided news article pertains to political developments in India and does not contain Sri Lankan business, market, or economic data.

🚨 Rahul Gandhi and Priyanka Gandhi Detained in Delhi Protest • Political Incident: Leader of the Opposition Rahul Gandhi and MP Priyanka Gandhi Vadra were detained by Delhi Police during a march toward PM Narendra Modi’s residence. • Core Demand: Protesters demanded the resignation of Union Education Minister Dharmendra Pradhan over the alleged NEET-UG 2026 paper leak. • Escalation: The march from Rajaji Marg followed allegations of police brutality against student demonstrators a day earlier. • Economic Impact: No direct impact on Sri Lankan business, market, or economic metrics based on the provided text.

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🚨 SLWJA Condemns Parliamentary Summons of BBC Journalists

• Key Incident: The Sri Lanka Working Journalists’ Association (SLWJA) has strongly condemned the decision to summon two BBC Sinhala Service journalists—producer Ishara Dhanasekara and journalist Sampath Dissanayake—before the Parliamentary Privileges Committee on July 23 at 2:00 p.m. • Reason for Summons: The order followed a complaint by MP Lakmali Hemachandra under instructions from the Speaker, regarding BBC Sinhala’s coverage of a Women Parliamentarians’ Caucus meeting. The meeting involved questioning National Child Protection Authority (NCPA) officials over delayed police probes into child abuse allegations involving Ven. Pallegama Hemarathana Thera. • SLWJA Stance & Impact: • Termed the move as "media repression," intimidation, and a serious threat to freedom of speech and media independence. • Highlighted that the Women Parliamentarians’ Caucus is an informal body lacking legal authority. • Alleged the government is misusing parliamentary privileges to curtail press freedom and conceal administrative failures. • Call to Action: The association demanded the immediate withdrawal of the summons and urged media bodies, civil society, and the public to unite against repressive actions threatening democracy and transparency.

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UNP Clarifies Former President Wickremesinghe's London Visit and Religious Traditions 📰

• Political & Media: The United National Party (UNP) issued a formal response to a Daily FT editorial, refuting claims surrounding former President Ranil Wickremesinghe’s transit stop in London. • Travel Context: The UNP clarified that the overnight stay in London—en route from Havana and New York—was at the invitation of Wolverhampton University's Vice Chancellor for an official university event, stating no charges or court findings exist against him. • State Traditions: Responding to editorial comments on state visits to the Tirupati shrine, the UNP defended the practice as a key act of interfaith reconciliation, highlighting its significance to both Hindu and Buddhist communities in Sri Lanka. • Publisher Response: The Daily FT categorically denied allegations of religious bias, urging an objective reading of its editorial content.

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📢 Govt. Rejects EPF-ETF Merger Claims, Focuses on Efficiency Reforms

Labour and Finance Deputy Minister Dr. Anil Jayantha Fernando has dismissed reports of merging or privatizing the Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF), confirming these claims are false. The recent Cabinet paper focuses strictly on streamlining administrative processes to safeguard and enhance worker benefits. • Core Clarifications & Objectives: • No Merger or Privatization: Funds will maintain their existing ownership structure and institutional management. • Administrative Oversight: A dedicated committee of officials has been proposed to examine options for enhancing governance and operational efficiency. • System Integration: Reforms focus on integrating fragmented database systems to eliminate payment delays and resolve unidentified account balances. • Key Operations & Current Structure: • EPF: Asset base managed by the Central Bank of Sri Lanka, with compliance and benefits handled by the Department of Labour. • ETF: Governed by a separate institutional framework protecting member savings and providing retirement benefits. • Public Consultation: The official committee report will be made public and presented to the National Labour Consultative Council prior to implementation. • Background & Economic Relevance: • EPF and ETF form the backbone of Sri Lanka’s social security & national savings framework for private and state-backed sector employees. • Enhanced technology and unified data management aim to safeguard worker contributions while optimizing investment returns and member benefits transparently.

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Warning Over Politicisation & Selective Oversight in COPE 📈

• Key Concerns: ITAK MP Shanakiyan Rasamanickam warned Parliament against using the Committee of Public Enterprises (COPE) as a political weapon or targeting forum, emphasizing that reports must respect due process and the presumption of innocence prior to court rulings. • Transparency & Case Selection: Raised serious questions regarding the consistency and transparency of selecting matters for inquiry, highlighting that selective prioritization undermines public trust in parliamentary oversight. • Financial Accountability: Cited past exposures of massive non-performing loan portfolios at state banking institutions—Bank of Ceylon, People's Bank, and National Savings Bank—involving billions of rupees in public funds that have since dropped from the national focus. • Core Demand: Called for equal, impartial investigation into all corruption and financial mismanagement allegations across all public institutions, without fear or favor.

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🏛️ Proposal to Extend Sri Lankan Judges' Retirement Age Sparks Debate

• Proposed Policy Shift: The NPP administration is considering a constitutional amendment to extend the retirement age of judges across all court levels—including magistrate, district, high court, and superior court judges—by 2 years. Current constitutional limits stand at 65 for Supreme Court judges, 63 for Appeal Court, and 61 for High Court. • Key Arguments & Rationale: Proponents cite severe judge shortages, long court delays, and rapid population aging as reasons to retain experienced judicial officers. However, extending tenure could prompt similar demands across public administration, healthcare, and academia. • Opposition & Legal Sector Reaction: The move faces strong pushback from the Judicial Service Association (JSA), Bar Association of Sri Lanka (BASL), and the Commonwealth Lawyers Association. BASL emphasizes that the 20th Amendment previously expanded judicial capacity—increasing Appeal Court judges from 12 to 20 and Supreme Court judges from 11 to 17—negating practical needs for tenure extension. • Governance & Institutional Risk: Critics argue that ad hoc constitutional changes risk compromising judiciary independence and public trust. Observers note the amendment would extend the tenure of Chief Justice Preethi Padman Surasena beyond his scheduled December retirement, raising concerns over executive influence and potential international scrutiny. [Sri Lanka judicial retirement age reform coverage](https://www.youtube.com/watch?v=89KN5RSzlgs) This video offers essential news reporting and analysis regarding the proposed constitutional changes affecting judicial tenure in Sri Lanka.

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🏛️ Whither Constitutional Reform? Lessons from Sri Lanka's Governance History

• Reform History: Dr. Jayampathy Wickramaratne's book highlights 32 years of failed efforts to replace the 1978 Constitution due to political opportunism, lack of consensus, and missed opportunities since 1994. • Risk of Majorities: Supermajorities historically triggered democratic backsliding (e.g., 18th and 20th Amendments), whereas pro-democracy reforms (17th, 19th, and 21st Amendments) succeeded through cross-party consensus. • Key Recommendations: Calls for constitutional supremacy over parliamentary power, curbing or abolishing the executive presidency, and safeguarding an independent judiciary alongside checks and balances to prevent autocratic erosion. • Devolution & Unity: Frames devolution of power in a plural society not as a political concession, but as a constitutional necessity to ensure equality, national unity, and long-term peace.

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Appointments & Executive Moves

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

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

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

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

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👔 HNB General Insurance Strengthens Board with Elite Leadership Appointments

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

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

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

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

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

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📈 Sanasa General Insurance Appoints Lahiru Jayasinghe as Chairman

• Leadership Transition: J. A. Lahiru S. Jayasinghe has been appointed as Chairman of Sanasa General Insurance Company PLC, effective July 15, 2026. He has served on the company's Board as a Non-Executive Director since May 2019. • Corporate Background: Jayasinghe brings over 16 years of professional experience across manufacturing, agriculture, trading, services, and the apparel sector. He currently serves as the CEO of St. Anthony’s Industries Group and Executive Director of St. Anthony’s Interior Solutions Ltd. • Qualifications & Expertise: A graduate of the University of Sri Jayewardenepura and holder of a PIM MBA, Jayasinghe is an Associate Member of CA Sri Lanka, CIM-UK, and CMA Sri Lanka. He is also a Certified Lean Six Sigma Black Belt with expertise in finance, operational excellence, and digital transformation. • Strategic Outlook: The company expects Jayasinghe's leadership to strengthen its strategic direction, governance framework, and focus on innovation and sustainable growth in Sri Lanka's general insurance market.

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📈 Executive Transition: Asoka Piyadigama Appointed to C.W. Mackie Board

• Executive Appointment: C.W. Mackie PLC has appointed distinguished finance and business leader Asoka Piyadigama as an Executive Director, effective 1 August 2026. • Deep Expertise: Piyadigama brings over 20 years of executive experience across Sri Lanka and Australia, specializing in corporate finance, financial strategy, treasury, and business transformation. • Proven Leadership: He has previously served as the CEO of the Institute of Chartered Accountants of Sri Lanka and as CFO for prominent listed conglomerates, overseeing strategic planning, mergers and acquisitions, and capital allocation. • Other Roles: He currently holds Independent Non-Executive Director positions at York Arcade Holdings PLC, C.M. Holdings PLC, and ACME Printing and Packaging PLC. Additionally, he provides strategic finance advisory services to international operations in the ICT/BPM (BPO) sector. • Professional Credentials: He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka (FCA (SL)) and a Member of CPA Australia.

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✨ Historic Leadership Milestone: Yashoravi Bakmiwewa Appointed as Director General of EFC

The Employers’ Federation of Ceylon (EFC) has appointed Yashoravi Bakmiwewa as its 14th Director General, marking a historic shift in the organization’s 97-year history. • The Milestone: Bakmiwewa is the first female Director General in EFC history and the first woman to head an Employers’ Business Member Organisation (EBMO) in South Asia. She succeeds Vajira Ellepola. • Professional Background: An Attorney-at-Law admitted to the Supreme Court in 2007, she holds an LL.B. from the University of Colombo and a Master’s in Labour Relations and Human Resources Management. She joined the EFC in 2010 after starting her career at the Attorney General’s Department. • Key Contributions: Over her 16-year tenure, she managed strategic legal advisory and industrial relations, headed the EFC training division since 2019 to improve workplace compliance, and represented employer interests at national tripartite forums and Wages Boards. • Future Vision: Her leadership will focus on helping private sector businesses navigate sustainability challenges and technological transformation in an AI-driven environment.

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💼 Russel Fonseka Appointed as New CEO of MBSL

• Executive Appointment: Merchant Bank of Sri Lanka & Finance PLC (MBSL) has officially announced the appointment of veteran banker Russel Fonseka as its new Chief Executive Officer (CEO). • Industry Experience: Fonseka brings over 30 years of experience in the Sri Lankan banking and financial services sector. He previously held multiple senior leadership roles at the Bank of Ceylon (BOC), ultimately retiring as its General Manager/CEO in August 2025. • Core Expertise: His professional background spans strategic leadership, banking operations, financial management, corporate governance, risk oversight, and regulator engagement. • Academic & Professional Credentials: - Alumnus of the Advanced Management Programme at Harvard Business School (USA). - Holds an MBA from the University of Southern Queensland (Australia) and a B.Sc. in Business Administration from the University of Sri Jayewardenepura. - Fellow Member of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and a Senior Fellow Member of the Institute of Bankers of Sri Lanka (IBSL). • Strategic Outlook: Fonseka’s leadership is positioned to drive MBSL’s ongoing strategy focused on growth, innovation, and institutional transformation within the local financial landscape.

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CBL Group Appoints Sheamalee Wickramasingha as Group Chairman 📈

• Leadership Transition: Group Managing Director Ms. Sheamalee (Shea) Wickramasingha has been appointed as Chairman of CBL Group effective July 6, 2026. She will dual-serve as Group Managing Director and Chairman, succeeding the late Mr. Ramya Sanath Amaraweera Wickramasingha. • Corporate Legacy: The appointment continues the legacy of CBL’s founder, the late President Emeritus Mineka Wickramasingha, who established the company in 1968. Ms. Wickramasingha, a food technologist who joined Ceylon Biscuits Limited in 1991, has been a board member since 1996 and Group MD for over a decade. • Economic & Sector Footprint: CBL Group is one of Sri Lanka's leading and most diversified food manufacturing conglomerates. The group is a major employment driver, employing more than 7,000 people. • Market & Global Reach: • Portfolio includes market-leading household brands such as Munchee, Ritzbury, Revello, Tiara, Lanka Soy, Samaposha, Sera, and Nutriline. • Operates manufacturing units in Sri Lanka, Ghana, and Indonesia. • Exports products to more than 70 countries worldwide. • Acts as the licensed operator of SPAR supermarkets in Sri Lanka.

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💼 EFC Appoints New Leadership; Commits to Labour Law Reforms & Employment Landscape

The Employers’ Federation of Ceylon (EFC) concluded its 97th AGM, appointing a new leadership team for the 2026/27 financial year to drive national employment policies and responsible business initiatives. • New Leadership: Sanath Manatunge (Managing Director/CEO of Commercial Bank and Chairman of the Sri Lanka Banks’ Association) was appointed as the new EFC Chairman. Dinal Peiris (Group Chairman/Managing Director of Lanka Aluminium Industries PLC) takes over as Vice Chairman. • Strategic Focus: The incoming leadership reaffirmed commitments to actively contribute to upcoming labour law reforms to support future-ready businesses. The federation will focus on collaborating with tripartite stakeholders to strengthen Sri Lanka's broader employment landscape. • Economic & Employment Impact: Entering its 97th year of operation, the EFC acts as the national employers’ organisation and the constituent of the International Labour Organisation (ILO) in Sri Lanka. It currently represents a highly diverse set of industries collectively employing over 800,000 workers across the country.

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📈 Maharaja Foods PLC Restructures Board to Drive Retail Expansion and Governance

Maharaja Foods PLC has announced key strategic changes to its Board of Directors to strengthen corporate governance and accelerate its next phase of growth. Key Leadership Changes: • Imran Furkan has been appointed as the new Chairman. A seasoned corporate leader, he currently serves as CEO of Tresync (Australia) and holds multiple board directorships across the Asia-Pacific region, including in the healthcare, retail, and financial sectors. He is also a former CEO of SLASSCOM (the national chamber for the ICT/BPM sector). • Gimhan Sawinda Rajapaksha Dissanayake joins the board as an Independent Non-Executive Director. He brings entrepreneurial expertise from the tea manufacturing, hospitality, and wellness sectors, with a focus on promoting Sri Lankan products globally. • Guganathan Vijayananth, the outgoing Chairman, transitions to the role of Executive, Non-Independent Director. He will directly spearhead the Group’s retail expansion and new venture developments, leveraging his experience in the logistics and food & beverage industries. • Vithyanath Guganathan continues in his current role as Managing Director, ensuring operational and leadership continuity during this transition. Strategic Context: • The restructuring blends extensive cross-sector board experience with the entrepreneurial drive of the company's founding leadership. The new governance model aims to transition the Group from a family-oriented partnership into dedicated business units focused on long-term value creation.

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Regulatory & Policy News

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📈 Cabinet Approves ILO Fishing Convention Ratification

• Key Decision: The Cabinet of Ministers approved a joint proposal to ratify the International Labour Organisation’s (ILO) Convention (188) on work in the fisheries sector, paving the way for new regulations. • Sector Impact: The fisheries industry in Sri Lanka employs over 315,000 workers, largely operating at a basic level through traditional practices with significant challenges in occupational safety, health, and service conditions. • Standards & Objectives: Adopted at the 2007 International Labour Conference, Convention 188 sets benchmarks for decent working conditions, medical care access, health facilities, and safety for fishing communities. • Way Forward: Approved jointly by the Ministry of Fisheries, Aquatic Resources and Ocean Resources and the Ministry of Labour, this enables preliminary regulations to establish internationally recognized standards in the fisheries sector.

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📈 CA Sri Lanka Urges Urgent Tax & Policy Reforms to Boost FDIs

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) has issued a policy white paper calling for immediate tax and investment policy reforms. The report highlights that traditional tax holidays are losing traction under the OECD’s Global Minimum Tax (GMT) framework, risking the loss of national tax revenues to foreign jurisdictions. • Overall Strategy: Modernize Sri Lanka's investment framework by replacing outdated tax holidays with OECD-compliant incentives like Qualified Refundable Tax Credits (QRTCs) and a Qualified Domestic Minimum Top-Up Tax (QDMTT) to retain revenue locally. • High-Impact Sectors: Shift toward spend-based incentives targeting technology & digital services, renewable energy, export-oriented manufacturing, and green economy initiatives. • Ease of Doing Business: Streamline complex visa and work permit approval processes for foreign investors to minimize administrative delays and improve investment predictability. • Tax Administration: Enhance administrative efficiency by adopting risk-based audit frameworks, expanding digital tax systems, and establishing an Independent Tax Ombudsman to resolve taxpayer grievances. • Legal & Regulatory Gaps: Resolve Beneficial Ownership Register inconsistencies—particularly within the Colombo Port City framework—to align with global transparency standards and modernize Advance Pricing Agreements (APAs) for multinational enterprises.

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⚖️ Landmark SC Ruling Reaffirms Public Accountability & Rule of Law

• Overview of Judgment The Supreme Court of Sri Lanka delivered a landmark ruling on 30 March 2026 in the Seagull Property Developers case. The decision resolved a 22-year legal battle by apartment owners challenging unlawful construction and the removal of promised residential facilities. • Institutional Failures & Legal Violations The Court held that prolonged institutional inaction, delay, and negligence by public authorities—including the Condominium Management Authority (CMA), Colombo Municipal Council (CMC), and Urban Development Authority (UDA)—violated the petitioners' fundamental right to equal protection under Article 12(1) of the Constitution. Justice A.H.M.D. Nawaz noted that the private developer had effectively operated in a "regulatory vacuum" created by statutory authorities. • Impact on Real Estate & Investment The judgment emphasized that administrative failures and regulatory delays extend beyond individual disputes: • Impede investment and commercial trust in Sri Lanka's real estate and construction sectors. • Undermine public confidence and hamper broader national economic and development activities. • Key Policy Takeaways • Establishes that statutory powers assigned to public authorities carry mandatory legal duties. • Reaffirms that executive actions and regulatory negligence remain strictly subject to judicial scrutiny. • Emphasizes the need for effective, practical remedies and early administrative resolution to protect investor and public interests.

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📈 Policy Brief: Mobilizing Diaspora to Drive Economic Recovery

A comprehensive policy brief details plans to harness Sri Lanka's 41 active diaspora networks through a single statutory coordinating unit modeled after India's and Malaysia's execution frameworks. • Residency & Visa Pathways • SLOC Card: Lifelong, multiple-entry status offering property rights and investment parity with residents, modeled on India's OCI. • Golden Visa: 5–10 year renewable residency for US$ 100,000–250,000 committed to Port City or BOI-approved projects. • Fiscal & Financial Framework • Reduced flat tax rates leveraging existing concessions (16% on research income, 10% on education, VAT exemptions for R&D). • Statutory guarantees for dual banking rights and unfrozen foreign-currency accounts. • Corporate tax exemptions of up to 13 years for diaspora-founded firms in the Port City. • Capital Mobilization • Yozma-style Equity Fund: Co-investing state and diaspora capital into technology and Port City start-ups. • Diaspora Village Match Fund: Co-funding local infrastructure (schools, water, clinics) with matching government funds. • Diaspora Bond: Ring-fenced, line-by-line audited debt instruments following equity mechanisms. • Sector Integration & Talent Retention • Fast-track credential recognition in short-staffed sectors like healthcare, engineering, and nursing for returnees from the UK, Australia, Canada, and the Gulf. • Academic engagement via "Reverse Brain Drain" science grants and "My Second Home" retiree programs. • Phased Implementation • Four-stage rollout (0–24+ months) starting with SLOC card rollout, credential recognition, and statutory authority setup.

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Sri Lanka Launches National Workshop to Drive AI & Public Sector Transformation 📈

A three-day workshop commenced in Colombo (20 July) to accelerate digital governance and strengthen the capacity of senior public sector officials. • Key Focus Areas: • Developing a national data governance framework and ethical AI policies. • Implementing interoperable systems, digital public services, and agentic AI tools. • Building institutional action plans for responsible AI adoption and evidence-based decisions. • Organizers & Leadership: • Jointly organized by UN DESA (DPIDG & UNPOG), Presidential Secretariat, and UN in Sri Lanka. • Key attendees include Dr. Hans Wijayasuriya (Senior Adviser on Digital Economy), Dr. Rajesh Pandav (UN Resident Coordinator), Roshan Gamage (Senior Additional Secretary), Changseob Han (Head of UNPOG), and Shevan Gunatilake (CEO of GovTech Sri Lanka). • Strategic Impact: • Aims to boost ICT/BPM integration in the public sector, improve inter-agency collaboration, and optimize public service delivery to strengthen national operational efficiency.

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⚖️ AG to Pursue Rs. 6.2 B Liquorg Tax Recovery via District Court

• State Action: The Attorney General’s Department informed the Supreme Court that judicial recovery proceedings will be filed in the District Court to collect over Rs. 6.2 billion in unpaid liquor tax arrears. • Legal Context: Disclosure came during a Fundamental Rights petition filed by 17 social activists (including Sanjaya Mahawaththa) seeking immediate recovery of State revenue. • Scale of Arrears: Total unpaid taxes owed by liquor manufacturers reached Rs. 6.221 billion as of June 15, 2023. • Entities Involved: Key respondents named include the Commissioner General of Excise, State Minister of Finance, Auditor General, and major manufacturers such as W.M. Mendis & Co., Wayamba Distilleries, McCallum Brewing, and Globe Blenders. • Next Steps: The Supreme Court fixed the petition for further hearing on November 16.

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📈 CBSL Imposes Rs. 14.6 Mn Penalties on 11 Firms for Non-Compliance

The Central Bank of Sri Lanka’s (CBSL) Financial Intelligence Unit (FIU) has collected a total of Rs. 14.6 Mn in administrative financial penalties from 11 reporting institutions between October 2025 and March 2026. • Regulatory Enforcement: Penalties were imposed by the FIU under the Financial Transactions Reporting Act (FTRA), No. 6 of 2006, serving as Sri Lanka’s primary regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT). • Penalty Criteria: The specific fines were determined based on the nature and gravity of the respective non-compliances identified within each institution. • Fund Allocation: The entire sum of Rs. 14,600,000 collected from these enforcement actions has been officially credited to the government's Consolidated Fund. _Note: Summary based on official regulatory data released by the FIU for the specified six-month period._

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📈 EU Sustainability Rules: Strict Compliance Deadlines Loom for Sri Lankan Exporters

Sri Lankan exporters targeting the European Union are urged to immediately prepare for sweeping new sustainability and anti-greenwashing regulations to secure market access. Key Regulatory Deadlines • Packaging Regulation (PPWR): Effective from August 12, 2026. • EmpCo Directive: Tougher scrutiny on green claims starts September 27, 2026. Non-compliance risks fines up to €2 million or 4% of annual turnover in relevant EU states. • Deforestation Regulation (EUDR): Due diligence for larger companies takes effect December 30, 2026. Affected Industries & Compliance • Broad impact across key Sri Lankan export sectors including tea, apparel & textiles, food and agriculture, spices, rubber products, fisheries, and plastics. • Rules apply equally to any non-EU organization exporting to Europe or making environmental claims targeting EU consumers across websites, ads, and reports. • Credible, evidence-based proof is now required for every sustainability claim; simple "eco-friendly" labels will no longer suffice.

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🌐 Global AI Governance: China Outlines Vision & 1 Trillion Yuan Smart Economy

Key highlights from the opening of the 2026 World AI Conference in Shanghai: • Economic Scale & Industry Impact: China's core smart economy industries have reached a value of at least 1 trillion yuan. The expansion is anchored by intelligent manufacturing and the "AI plus" initiative, driving technological upgrades across both traditional and emerging business sectors. • Global South Capacity Building: To bridge the global AI & digital divide, China committed to providing 5,000 AI training and seminar opportunities for developing nations over the next five years. Furthermore, it will launch international AI application cooperation centers with major regional bodies including ASEAN, the African Union, and BRICS. • Climate Safety: China will enable 30 countries to utilize its AI-powered meteorological warning system (MAZU) to upgrade disaster risk management and safeguard livelihoods globally. • Global Governance Pillars: The proposed framework urges nations to reject hyper-imperialism and focus on a people-centered approach. It outlines four observations: promoting open-source collaboration, maintaining strict human control and risk monitoring, protecting cultural diversity, and practicing UN-centered multilateralism. • Multilateral Initiatives: China continues to push for the creation of the "World Artificial Intelligence Cooperation Organization" (WAICO) to build a just, equitable, and consensus-based global governance framework.

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India Amends Tax Treaty with Sri Lanka to Plug Avoidance 📈

India has notified an amended protocol to its Double Taxation Avoidance Agreement (DTAA) with Sri Lanka, aimed at tightening loopholes, preventing treaty abuse, and curbing revenue leakage. The provisions will apply in India to income derived starting April 1, 2027. • Key Policy Change: The amended pact introduces the Principal Purpose Test (PPT) and updates the treaty's preamble. This shifts the framework from a purely objective criteria checklist to a focus on genuine commercial substance. • Impact on Investors: Tax authorities are now empowered to deny treaty benefits if a structure's principal purpose is to obtain a tax advantage, rather than facilitate real economic activity. Investors must now clearly substantiate the commercial rationale behind their investment structures. • Global Alignment: The modification integrates two significant OECD Multilateral Instrument (MLI) mandated changes. This aligns the bilateral corridor with international standards to prevent treaty-shopping and double non-taxation.

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Exporters Urge Clear Framework for New Forced Labour Import Rules 📈

The Exporters Association of Sri Lanka (EASL) has welcomed the country's commitment to international labour standards but called for an urgent, clear implementation framework for newly gazetted regulations banning forced labour imports. • Key Concerns Raised: Without finalized operational guidelines, the EASL warns of risks including trade disruptions, shipment delays at the Colombo port, increased compliance costs, and heavy administrative burdens. • Proposed Solutions: • Establish structured consultations with exporters, importers, chambers of commerce, and logistics providers before enforcing procedures. • Adopt an international risk-based enforcement model targeting high-risk goods and jurisdictions, rather than enforcing blanket documentation on all transactions. • Request the Department of Customs to publish comprehensive guidelines covering verification procedures, acceptable documents, and a reasonable transition period. • Economic Context: EASL Chairman Nalaka Ratnayake emphasized that a transparent, risk-based approach is vital to eliminating forced labour from supply chains while preserving Sri Lanka’s global competitiveness and facilitating smooth trade operations across major export sectors like apparel & textiles and tea.

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🚨 CAA Raids Private Hospitals & Labs: Expired Medical Supplies Seized

The Consumer Affairs Authority (CAA) has uncovered serious health and safety violations during a nationwide enforcement operation targeting private healthcare facilities. • Investigation Scope: The CAA conducted 52 targeted inspections spanning all districts across Sri Lanka to monitor compliance with consumer protection and health standards. • Major Violations: Multiple private hospitals and medical laboratories were caught storing and utilizing expired and unfit laboratory materials alongside active testing supplies. • Seized Materials: Key seized items included blood glucose testing kits, dengue diagnostic test kits, laboratory chemicals, cardiac patient gels, dye solutions, and other medical consumables. • Next Steps: The unfit materials have been taken into official custody. The CAA is conducting further investigations and launching legal action against the non-compliant institutions under the Consumer Affairs Authority Act. Island-wide raids will continue to safeguard public health.

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Global & International Business

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📈 Sri Lanka Expo 2027 Promoted in Kenya's Renewable Energy Sector

Sri Lanka's High Commission in Nairobi has actively promoted Sri Lanka Expo 2027 to the Kenya Renewable Energy Association (KEREA) to boost bilateral trade and green energy partnerships. • Key Event Details Event: Sri Lanka Expo 2027 (Flagship International Trade Exhibition) Dates: 14–17 January 2027 in Colombo Scope: Showcasing national export capabilities, facilitating B2B partnerships, and driving foreign investment. • Kenyan Promotional Roadshows Business briefing sessions hosted by Sri Lanka's High Commission: - Nairobi: 25 September - Mombasa: 2 October Aimed at linking Kenyan clean-tech companies with Sri Lankan exporters and investors. • Strategic Focus Areas Renewable energy & construction sector expansion. Cross-border private sector collaboration, knowledge sharing, and trade linkage growth between Sri Lanka and Kenya.

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📈 Sri Lanka Must Rebuild Resilience as Strategic Advantage: Brandix MD

• Regional Competition & Strategic Shift Sri Lanka has lost its historic edge in supply chain resilience to regional manufacturing rivals like Bangladesh, Vietnam, and Indonesia. Brandix Lanka Group MD Hasitha Premaratne urges leaders to embed resilience, governance, and trust as core strategic assets to attract global buyers in a volatile market. • Navigating Supply Chain & Cost Pressures Geopolitical volatility (conflicts, shipping delays, tariffs) is now a continuous cost driver requiring a shift from "just-in-time" to "just-in-case" strategies. Highlighting risks in the apparel & textiles sector, Brandix increased inventory lead times from 30 to 40 days during Middle East shipping disruptions to prevent costly idle production lines. • Growth Drivers & Market Expansion Sri Lanka must leverage its geographic position to become a high-value hub for logistics & export, competing on innovation and service rather than low-cost volume. Finance leaders are advised to strengthen balance sheets, adopt AI for productivity, and diversify export markets into regions like India and Africa.

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🤝 Port City Colombo Courts Omani Investors in Muscat

• Key Engagements: A delegation led by Colombo Port City Economic Commission Chairman Harsha Amarasekera PC held strategic talks in Muscat with OPAZ Chairman H.E. Qais bin Mohammed Al Yousef and Invest Oman CEO Nasser Al Kindi. • Strategic Synergies: Focused on aligning Special Economic Zones (SEZs) across Sri Lanka and Oman to facilitate cross-border foreign direct investment, business coordination, and regional expansion. • Investor Forum: Concluded with an investor forum at Sheraton Oman Hotel, bringing together Omani corporates, family offices, and financial institutions to showcase opportunities in Port City Colombo. • National Impact: Supports Sri Lanka's economic transformation agenda by positioning Port City Colombo as South Asia's premier gateway for international business and deepening Gulf trade corridors.

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🇸🇪 Sweden to Bring Trade Delegation to Sri Lanka Expo 2027

The Sri Lanka Export Development Board (EDB) hosted Swedish Ambassador Jan Thesleff to discuss expanding bilateral trade and investment relations with Sweden and the wider Nordic region. Key Highlights: • Sri Lanka Expo 2027: The ambassador reaffirmed Sweden's commitment to bringing a trade delegation of buyers and investors to the premier exhibition, scheduled for 14–17 January 2027 in Colombo. • Targeted Growth Sectors: Discussions focused on the strong export potential and high-quality standards of Ceylon Cinnamon, coconut & coconut-based products, gems & jewellery, apparel, and ICT (Information and Communication Technology). • Market Alignment: Swedish officials noted that Sri Lanka’s focus on sustainable, high-quality products positions it exceptionally well to meet stringent European and Nordic market demands.

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📈 LIBA to Launch 'India Calling' Forum to Boost Sri Lanka-India Trade and Investment Barriers

The Lanka India Business Association (LIBA) has announced a major full-day corporate forum, ‘India Calling’, aimed at accelerating private sector integration, addressing regulatory friction, and driving bilateral trade and investment corridors between Sri Lanka and India. • Event Details: Scheduled for August 6th, 2026, from 9:00 AM to 6:00 PM at the Taj Samudra, Colombo. • Strategic Intent: The forum comes at a critical time as Sri Lanka recalibrates its macroeconomic framework, aiming to transition bilateral policy theory into actionable cross-border investment corridors and deeper integration with the Indian market. • Key Indian Speakers & Themes: • Montek Singh Ahluwalia (Architect of India's 1991 reforms): Will share structural lessons from India's economic transformation to aid Sri Lanka's recovery. • Prof. C. Raja Mohan (Foreign policy strategist): Will focus on "shared prosperity" as a anchor for regional stability. • Devdutt Pattanaik (Corporate consultant/author): Will dissect how cultural narratives shape South Asian consumer behavior. • Forum Agenda: Panels will feature corporate lawyers, former ambassadors, political leaders, and media figures (including ANI's Smita Prakash and WION's Sidhant Sibal). Focus areas include reducing bureaucratic trade barriers, analyzing the investment landscape, and engaging youth in regional integration. _Note: Seats are limited with registration open via the official booking platform._

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🎨 Historic 19th-Century Ceylon Art Exhibition Announced

The George Keyt Foundation has partnered with the British High Commission to present "19th Century Views of Ceylon," a landmark exhibition hosted at Westminster House from July 30 to August 1, 2026. This marks the first time the British High Commissioner's residence will open for a public art exhibition. • Cultural and Historical Value: The exhibition features rare, historic artworks sourced from private collections, many never before seen by the public. It provides visual insights into 19th-century Ceylon's landscapes and architecture as captured by prominent British artists. • Featured Artists: Key collections include watercolours and illustrations by Edward Lear, Andrew Nicholl, and Constance Gordon Cummings. • Economic and Tourism Synergy: British Airways has signed on as the primary corporate partner. This collaboration aligns with the airline's upcoming resumption of direct flights to Colombo in October 2026, which is expected to boost bilateral tourism and air connectivity between Sri Lanka and the United Kingdom. • Corporate Backing: Additional financial and logistical support is provided by prominent corporate entities including Lynear Wealth, the Juniper Group, and Nations Trust Bank, with News1st acting as the electronic media partner. • Attendance Info: Admission is free, but limited capacity requires mandatory online pre-booking via the official registration portal.

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📈 Global Market Insights: The Unprecedented Economic and Military Supremacy of the US

Based on an analysis of historical and economic statecraft up to July 2026, the United States continues to maintain an unrivaled position as the dominant powerhouse in global commerce, finance, and military strength. • Overall Economic Figures The US economy stands at approximately US$ 32 Bn (accounting for roughly 25% of the US$ 126 Trillion global GDP), despite holding only 4.2% of the world's population. In comparison, China commands 15% of global GDP (with 17% of the population), Germany holds 4.2%, and India stands at 3.3%. The US equity market represents over 60% of the global market capitalization, valued at around US$ 78 Bn (225% of its GDP). • Corporate and Currency Dominance The US Dollar remains the premier Global Reserve Currency, maintaining a 58% share of all official reserves, far ahead of the Euro at 20%. The premier "Magnificent-7" technology corporates hold a combined market cap of US$ 23 Bn—exceeding the entire GDP of China. Notably, NVIDIA reached a historic US$ 5 Bn market cap in June 2026. The US financial system remains the global benchmark; leadership changes at the Federal Reserve directly dictate international monetary sentiment far more than counterparts in China or India. • Trade, Energy, and Defense The US is the world's largest importer (13% of global trade) and the second-largest exporter (10%). In energy, the US is the top global crude oil producer, yielding over 13 million barrels per day (15% of global output). Defense spending has surpassed US$ 1 Bn (more than one-third of the US$ 2.9 Trillion global total), supported by 750 to 800 overseas bases across 75 nations.

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📈 SL-Myanmar Strengthen Collaboration in Gem and Tourism Industries

Sri Lanka and Myanmar are set to deepen economic ties following a successful business development visit by the Nojili Group of Companies (Sri Lanka and Japan) from June 11–17, 2026. Facilitated by the Sri Lankan Embassy in Yangon, the initiative aims to boost bilateral trade and investment. • Gem & Jewellery Sector: CEO and Gemologist L.A.D. Palitha conducted in-depth studies of Myanmar’s gemstone market, visiting Yangon's major trading centres, laboratories, and museums. Business-to-business (B2B) meetings were held with top stakeholders, including Gemro Jewellery, to explore future trade partnerships and explore Myanmar's industry practices. • Tourism & Investment Sector: The visit featured active participation in the UMTA Travel Fair 2026. Discussions with the Union of Myanmar Travel Association (UMTA) and Myanmar Tourism Marketing (MTM) focused on strengthening cooperation in eco-tourism, cultural tourism, and heritage tourism. Key focus areas include joint marketing, visitor exchanges, and outbound travel promotions. • Strategic Impact: According to embassy officials, the engagements are designed to expand economic cooperation, build long-term business partnerships, and deepen people-to-people ties between both nations.

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🇲🇾🇱🇰 FOMSO & Sri Lanka to Boost Tourism and Investment Links

The Federation of Malaysian Sri Lankan Organisations (FOMSO) and Sri Lanka’s High Commission in Kuala Lumpur have agreed to deepen engagement across key economic and cultural sectors to strengthen bilateral ties. • Key Focus Areas: Discussions centered on expanding cooperation in tourism, investment, air connectivity, cultural diplomacy, and student exchange programs. • Tourism Diversification: FOMSO highlighted significant potential to promote leisure, cultural, religious, and ancestral tourism targeting the Sri Lankan-origin community in Malaysia. • Infrastructure & Connectivity: The delegation emphasized the need to enhance air connectivity, specifically exploring potential direct flight routes between Malaysia and the Northern Province of Sri Lanka. • Investment Opportunities: Discussions mapped out prospective tourism-related investment projects, including development in golf courses, leisure facilities, theme parks, and the hotel sector. Both parties committed to continuous collaboration to achieve practical, outcome-driven results in community engagement and economic partnership.

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US and Sri Lanka Reaffirm Ties in Trade and Maritime Security 🤝

The United States and Sri Lanka have committed to deepening bilateral commercial relations and maritime security cooperation during senior-level diplomatic meetings in Washington, D.C. • Bilateral Cooperation: US Undersecretary of State for Political Affairs, Allison M. Hooker, reaffirmed the US commitment to enhancing trade ties and security collaboration with Sri Lanka, acknowledging Sri Lanka's strategic maritime role. • Diplomatic Milestones: Sri Lanka's Ambassador to the US, Mahinda Samarasinghe, presented the commemorative book _Enduring Friendship_, which highlights key milestones spanning 250 years of diplomatic relations between the two nations. • Key Sectors Impacted: Stronger US ties remain vital for Sri Lanka's core export markets, particularly apparel & textiles, as well as broader economic diversification and regional stability. • High-Level Engagement: The discussions included key US officials from the Bureau of South and Central Asian Affairs, including Paul Kapoor, Nicole Chulick, and Bethany Morrison. _Note: Based on official diplomatic briefing data._

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Sri Lanka & Uzbekistan Launch New Framework for Enhanced Economic Ties 📈

Sri Lanka and Uzbekistan have established a formal bilateral dialogue framework following the inaugural round of Political Consultations held on July 9, 2026, in Tashkent. The milestone agreement aims to deepen economic engagement, leverage regional connectivity, and diversify trade partnerships. • Overall Cooperation: Signed a Memorandum of Understanding (MoU) to institutionalize regular bilateral dialogue, led by Sri Lankan Foreign Secretary Aruni Ranaraja and Uzbek First Deputy Minister Aloyev Bakhrom. The next round is scheduled for Colombo in 2027. • Key Sectors Identified: Mutual trade, tourism, logistics, and higher education (specifically revitalizing historical ties in medicine and engineering) were marked as high-potential areas. • Trade & Export Diversification: Targeted bilateral discussions focused on entering new markets and joint opportunities in core Sri Lankan sectors, including: • Apparel & textiles manufacturing collaboration. • Tea packaging and value addition. • Seafood exports expansion. • Gem & jewellery industry development. • Tourism Boost: Welcomed the launch of seasonal charter flights from Uzbekistan to Sri Lanka. Sri Lanka Tourism has been invited to participate in the Tashkent International Tourism Fair in September 2026 to catalyze Central Asian visitor flows.

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India Grants Rs. 600M for Medical Equipment at Deniyaya Base Hospital 🏥

India and Sri Lanka have signed a Memorandum of Understanding (MoU) to supply state-of-the-art medical equipment to the Base Hospital in Deniyaya, strengthening the bilateral healthcare and development partnership. • Financial Framework: The project is funded via a Rs. 600 million grant from the Government of India. This initiative is part of India’s larger US$ 450 million assistance package dedicated to Sri Lanka's post-Cyclone Ditwah reconstruction and rehabilitation efforts. • Strategic Relocation & Timeline: The Government of Sri Lanka is relocating the hospital as a comprehensive disaster preparedness measure, moving it away from its current disaster-prone location. The relocation is projected for completion within three years, with equipment installation synchronized with the final construction phases. • Scope of Equipment: The grant covers high-end medical equipment across multiple critical departments, including operating theaters, High Dependency Units (HDU), emergency and isolation units, laboratories, radiology, a blood bank, and a Special Care Baby Unit (SCBU)/NICU. • Broader Economic Context: Healthcare cooperation remains a major pillar of India-Sri Lanka development ties, alongside past projects like the island-wide 1990 Suwa Seriya ambulance service and ongoing hospital upgrades in Mannar and Mullaitivu.

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Corporate News

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Sri Lanka Corporate Director Summit 2026 Kicks Off Today 📈

The fully sold-out event, themed _“Future-Ready Sri Lankan Directors,”_ gathers global and local leaders at Cinnamon Grand Colombo to explore modern corporate leadership, strategic stewardship, and board governance. • Key Event Details Organizer: Sri Lanka Institute of Directors (SLID) in partnership with Daily FT Focus: Strengthening governance, managing risks, and shifting focus from standard compliance to long-term value creation Structure: Directors’ Dialogue, four targeted panel sessions, and a concluding fireside chat • Key Speakers & Leadership Global Leaders: Prof. Sir Nishan Canagarajah (Univ. of Leicester), Dr. Binod Chaudhary (Chaudhary Group), Kalpana Morparia (HSBC India / former J.P. Morgan), and Anjana Reddy (Universal Sportsbiz) Local Leadership: Dr. Harsha Cabral, PC (Chair, National Savings Bank & Tokyo Cement) The summit addresses critical strategic priorities to elevate Sri Lanka's corporate competitiveness and investor trust.

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🚢 Hayleys' Sri Lanka Shipping Co. Secures US$ 17.16 Mn SLPA Deal 📈

• Contract Overview: Hayleys PLC subsidiary, Sri Lanka Shipping Company Ltd., has secured a contract valued at US$ 17.16 Mn (excluding taxes and duties) to supply and lease two tug vessels to the Sri Lanka Ports Authority (SLPA) for a 5-year period. • Vessel Specifications: The agreement covers two 70-ton Bollard Pull (BP) Twin Azimuth Stern Drive port tugs to expand and maintain the authority's fleet capacity. • Procurement Details: Following initial Cabinet approval in January 2025, international competitive bids were called, yielding three submissions. Sri Lanka Shipping Co. was awarded the contract as the lowest responsive bidder upon recommendation by the High-Level Procurement Committee. • Sector Impact: The agreement boosts Sri Lanka's maritime & logistics sector, supporting national port infrastructure and operational efficiency for international vessel traffic.

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🎬 US Court Pauses Paramount-Warner Bros US$ 110 Bn Mega-Merger 📈

A US federal judge has issued a 14-day temporary restraining order halting the proposed US$ 110 Bn (£85 Bn) merger between Paramount Skydance and Warner Bros Discovery. • Legal Injunction Details: US District Judge Araceli Martínez-Olguín blocked the deal following a lawsuit filed by a coalition of 12 US states, including California and New York. Neither company can finalize or integrate operations during the 14-day pause. • Antitrust Concerns: State prosecutors argued the merger would stifle competition and increase consumer prices, causing "substantial harm" across movie distribution, basic cable, and theater audiences. • Corporate Defense: Paramount and Warner Bros argued the market was misread and that merging would enhance streaming efficiency. The judge ruled that public interest in antitrust enforcement outweighs short-term merger delays. • Market Impact: The combined entity would account for over 25% of major film releases and unite top franchises (Harry Potter, Batman, Mission: Impossible, Top Gun) and major networks (CNN, MTV, CBS). • Next Steps: Both companies will continue operating as separate competitors while legal proceedings continue, with the next court hearings scheduled for August.

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📊 Governance Risk: Boards Face Strategic Irrelevance Through Overconfidence

• Key Governance Danger: Strategic irrelevance and a "know-it-all" mindset—rather than fraud or cyber attacks—represent the greatest risk to modern boards when directors stop learning and fail to anticipate future disruptions. • Readiness Gap: Research highlights a widening gap between high board confidence and actual preparedness to handle emerging threats, including artificial intelligence, cyber security, ESG expectations, and regulatory complexity. • Evolving Board Mandate: Corporate governance has shifted beyond traditional compliance (approving budgets and audit reviews) to requiring active foresight, stewardship, and sound judgment under high uncertainty across sectors such as banking and listed enterprises. • Social Media & Trust: Rapid digital communication means reputations built over decades can be damaged in hours, forcing boards to act swiftly and responsibly to safeguard organizational trust. • Future-Ready Approach: Sustainable boards must encourage constructive debate, challenge legacy assumptions, address talent gaps, and remain intellectually curious to retain strategic relevance.

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📈 Ambeon Capital Plans Rs. 4 Bn Equity Raising to Fund High-Growth Sectors

Ambeon Capital PLC has announced plans to raise up to Rs. 4 billion through a combination of a Rights Issue and a private placement. The initiative aims to strengthen the company’s capital structure, reduce its gearing ratio, and fund new equity investments in high-growth areas. • Overall Funding Targets: Total capital raising of up to Rs. 4.0 billion at an issue price of Rs. 32 per share. The price is set slightly above the recent market closing price of Rs. 30.10, which the Board noted reflected fair value amid recent market volatility. • Structure of the Capital Raise: • Rights Issue: Plans to issue up to 100 million ordinary voting shares to raise up to Rs. 3.2 billion. Existing shareholders can subscribe at a ratio of 1 new share for every 10.22352863 shares held. • Private Placement: A contingent placement of up to 25 million ordinary voting shares to raise an additional Rs. 800 million. This will only proceed if the Rights Issue is fully subscribed and will be allocated on a pro-rata basis if oversubscribed. • Strategic Utilization: Proceeds will be utilized to lower debt leverage and bankroll new investments into critical diversification sectors for the national economy, including financial services, technology, real estate, and fast-moving consumer goods (FMCG). • Current Status & Approvals: Both capital-raising exercises are subject to in-principle approval from the Colombo Stock Exchange (CSE). The Rights Issue requires an ordinary resolution from shareholders, while the private placement requires a special resolution at an upcoming General Meeting.

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📉 Samsung Electronics America Cutting 739 New Jersey Roles Ahead of Texas HQ Move

Samsung Electronics America (SEA) is reducing its workforce in Englewood Cliffs, New Jersey, by 739 jobs as it prepares to relocate its headquarters to Texas by the end of 2026. Based on official WARN notice data and corporate statements, the key details include: • Impacted Workforce: The reduction affects 739 positions out of approximately 1,200 workers currently employed by the unit in New Jersey (~61.5% of the local workforce). • Scope of Business: The affected unit handles U.S. sales and marketing for displays, phones, TVs, and home appliances. The company's semiconductor business is entirely excluded from this transition. • Company Position: Samsung stated that most affected employees have been offered relocation opportunities to Texas. The company attributes the workforce restructuring to relocation constraints and operational optimization rather than traditional layoffs.

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📈 AMW Transfers Solid Tyre Division to AGTL for BOI Expansion

• Corporate Restructuring: Associated Motorways Ltd. (AMW) has formally transferred its Solid Tyre Division to its wholly owned subsidiary, Associated Global Trading Ltd. (AGTL). • Strategic Objectives: The transfer serves as a foundational step for AGTL to operate as a Board of Investment (BOI)-registered entity. The restructuring aims to build a focused, investment-ready business with the full backing of AMW and parent company Al-Futtaim Group. • Economic Context & Export Growth: Operating as a BOI-focused manufacturing entity will allow AGTL to independently scale its production capacity, accelerate export growth, and deepen strategic partnerships in international markets. • National Impact: The move is positioned to further strengthen Sri Lanka's standing as a competitive manufacturing hub for the rubber & tyre sector.

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📈 Softlogic Finance Records Rs. 150 Mn Profit in Major Turnaround

• Financial Performance: The company achieved a profit of approximately Rs. 150 Mn, transitioning from stabilization to sustainable growth. Its total asset base now exceeds Rs. 7.5 Bn, supported by a Rs. 6.7 Bn lending portfolio and Rs. 3.8 Bn in customer deposits. • Capital & Strength: Core capital surpassed Rs. 2.8 Bn. The company recorded a Capital Adequacy Ratio of approximately 61%, positioning it among the highest in Sri Lanka's financial services sector. • Portfolio Quality: Focusing on secured, asset-backed lending including vehicle leasing, vehicle loans, and gold loans, the newly originated lending portfolio maintained an exceptional 0% non-performing loan (NPL) ratio. • Group Synergies: Operating through 15 branches island-wide, the company benefits from the diversified Softlogic Group, which spans healthcare, retail, and insurance.

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Consortium Launches 40-Cent Voluntary Takeover Offer for Industrial Asphalts 📈

• The Deal: Arcasia Investment and Trading Ltd. and ATX Partners Ltd. have agreed to acquire a controlling 50.16% stake (1,880,693,010 ordinary shares) in Industrial Asphalts (Ceylon) PLC through privately negotiated Share Purchase Agreements (SPAs) dated July 7, 2026. • The Transaction: The consortium is purchasing approximately 48.03% of the issued share capital from Director Ramanan Govindasamy and a further 2.13% from Srikumar Balasubramaniyam, both at a price of 40 cents per share. • The Voluntary Offer: Following these acquisitions, Arcasia and ATX intend to launch a voluntary offer to acquire all remaining ordinary shares from minority shareholders at the same price of 40 cents per share, subject to SEC approval. • Market & Financial Context: • The offer price of 40 cents represents a discount compared to Industrial Asphalts' last closing price of 70 cents per share (as of Friday). • The company reported assets of 47 cents per share as of end-March 2026. • Ramanan Govindasamy is currently the top shareholder (48.03%), followed by Senthilverl Holdings (4.71%) and B. Srikumar (4.27%).

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🎉 Ceylinco Life Treats Over 1,000 ‘Family Savari’ Winners at Pearl Bay

Sri Lanka’s leading life insurer, Ceylinco Life, successfully hosted over 1,000 policyholders and their family members from across the country for an exclusive day of recreation at the Pearl Bay leisure destination. • Event Highlights: The gathering brought together more than 270 families representing every province and district in Sri Lanka, reinforcing the brand's focus on family bonding. • Inclusivity & Logistics: Attendees received fully hosted access, including entry, meals, and coordinated transport. For families travelling over 200 km, Ceylinco Life provided fully sponsored transport and overnight accommodation to ensure nationwide accessibility. • Executive & Brand Presence: The event was attended by Ceylinco Life’s directors, senior management, and long-time ‘Family Savari’ brand ambassadors Roshan and Kushlani Ranawana. • National Context: Operating for nearly two decades, the 'Family Savari' initiative remains the largest and most enduring loyalty rewards programme in Sri Lanka's insurance sector, having benefited tens of thousands of local policyholders through domestic excursions and international travel.

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📈 Purposeful Leadership: Navigating Business Paradoxes Under Pressure

A specialized reflection highlights that purposeful leadership is defined by navigating real-world complexities and tensions rather than avoiding them, especially within organizations, employment structures, and national frameworks. • Key Leadership Paradoxes: Stability vs. Agility: Balancing reliable systems and operational discipline with rapid pivoting against technological disruptions. On a national level, governments face this when maintaining economic stability amid global trade shifts. Performance vs. Wellbeing: Managing the pressure for quarterly results and market share without depleting human capital. True leadership drives performance through wellbeing to avoid burnout and attrition. Growth vs. Sustainability: Reconciling revenue expansion with environmental footprints, resource utilization, and ethical sourcing. Results vs. Values: Maintaining integrity under financial pressure. Purposeful leaders avoid compromising core company values (e.g., integrity, customer focus) just to meet short-term financial targets. • Strategic Implications: True leadership strength lies in holding these tensions thoughtfully rather than choosing one side over the other. Purpose acts as a consistent compass to guide long-term corporate strategy and national economic policy through inevitable trade-offs.

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🚨 CIABOC Continues Probe into Alleged $ 2 Mn SriLankan Airlines Bribe

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) informed the Colombo Chief Magistrate that investigations are ongoing regarding an alleged US$ 2.00 Mn bribe linked to a 2013 aircraft transaction. • Overall Case: The probe centers on a 2013 deal to purchase a fleet of 10 aircraft for SriLankan Airlines (aviation sector) from a European aerospace manufacturer. • Key Suspects: • The principal suspect, former SriLankan Airlines CEO Kapila Chandrasena, is deceased. CIABOC will apply to recall his warrant upon receiving the official death certificate. • Sharmindra Rajapaksa (son of former Minister Chamal Rajapaksa) and Priyanga Niyomali (wife of the late CEO) remain suspects with red notices issued against them. • Transaction Mechanism: The investigation alleges a company was set up in Brunei to facilitate the US$ 2.00 Mn bribe from the European Aeronautic Defence and Space Company. The funds were reportedly remitted to an account held by Australian resident W.D. Nimal Perera, though he has not yet been formally named a suspect. • Next Steps: The court directed CIABOC to report progress on the investigation by 13 October 2026.

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Real Estate

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

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

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

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

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

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

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

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

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📈 LKR Depreciation Enhances Sri Lankan Real Estate Affordability for Diaspora

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

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

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

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

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

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🏗️ CHEC Commences Construction of Home Lands Skyline’s Pentara Residencies in Colombo 05

The China Harbour Engineering Company (CHEC) has officially commenced construction on Pentara Residencies by Home Lands Skyline following a ceremonial groundbreaking ceremony. The project marks a major addition to Colombo's high-rise residential landscape. Key Project Highlights: • Development Structure: A premium twin-tower super high-rise development consisting of one 31-storey tower and one 41-storey tower. • Scale: The project spans a total gross floor area of approximately 87,000 square metres. • Location: Situated in Colombo 05, approximately 4 km from Colombo City Centre, 7.4 km from the Port of Colombo Container Terminal, and 35 km from the Bandaranaike International Airport. Economic & Industry Impact: • Construction & Infrastructure: Global engineering giant CHEC is serving as the main construction partner, deploying its large-scale high-rise expertise to meet international construction standards. • Economic Contribution: The commencement of construction is expected to stimulate regional economic activity, driving supplier participation, local industrial engagement, and employment generation. • Urban Development: The project enhances Colombo's vertical living infrastructure, reflecting continued stakeholder confidence and collaboration between international contractors and local real estate developers.

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📈 Real Estate: Prime Lands Breaks Ground on Kalutara’s First Gated Community

• Overall Project: Prime Lands has officially commenced construction on ‘Kaloora’, marking the first-ever master-planned gated residential community in Kalutara. The project is being constructed by the group's engineering arm, Prime Constructions Ltd., highlighting Kalutara's emergence as one of Sri Lanka’s fastest-growing residential destinations outside Colombo. • Strategic Value & Infrastructure: The development targets the growing demand for modern housing, focusing on long-term investment value and regional development. Key connectivity points include: • 5 minutes from Kalutara Town • 800 metres from Nagoda Hospital • 15 minutes from the Dodangoda Highway entrance • Amenities & Market Impact: The project introduces Colombo-style luxury amenities to the region to elevate contemporary living standards. According to Prime Lands CEO Ruminda Randeniya, the project introduces flexible payment plans to improve affordability for local families. Inside the secure perimeter, the community features a swimming pool, fully equipped gymnasium, children’s play area, indoor cricket facility, and a multifunctional room under 24-hour security. _Note: Based on official corporate project launch data._

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📈 Plans Accelerated for 'Temple City' Tourism Project in Colombo

The Sri Lankan government has fast-tracked discussions for the proposed 'Temple City' development project, aiming to transform the area surrounding Beira Lake into a premier international tourism and cultural destination. • Core Project Objective: Spearheaded by the Urban Development Authority (UDA) and guided by the Hunupitiya Gangaramaya Temple, the initiative seeks to leverage the site's immense cultural and tourism potential to elevate Colombo's global appeal. • Key Development Features: Plans focus heavily on landscaping, environmental beautification, and enhanced infrastructure. This includes building a dedicated pedestrian walkway around Beira Lake to provide seamless mobility for both local and international visitors. • Execution & Timeline: At a high-level stakeholder meeting chaired by the Secretary to the President, officials emphasized strict inter-institutional coordination to ensure the project is implemented expeditiously. • Stakeholder Involvement: The initiative brings together key state and religious entities, including the Chief Incumbent of the temple, the Prime Minister’s Secretariat, the UDA, the Colombo Municipal Council, and the Sri Lanka Tourism Promotion Bureau.

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🏗️ Home Lands Breaks Ground on Central Park Boulevard in Port City Colombo

Home Lands Group has officially commenced construction on “Central Park Boulevard Port City Colombo,” marking a major milestone for Sri Lanka's real estate and construction sectors. • The Project: An ultra-luxury twin-tower landmark development located in the prestigious Central Park District of Port City Colombo. The project integrates high-rise living with a 40-acre modern parkland featuring landscaped gardens and waterways. • Key Features: The development will house a collection of premium residences, including deluxe apartments, sky villas, penthouses, and exclusive Emerald Mansions, alongside world-class amenities. • Timeline & Scale: Construction is scheduled for completion within 40 months. The independent execution highlights Home Lands' financial strength and track record, having already delivered over 3,750 homes across Sri Lanka. • Economic Impact: Positioned as "The Indian Ocean’s Next Wonder," the project aims to elevate Sri Lanka as a premier regional real estate investment destination, drawing strong interest from both local and overseas investors during its recent grand launch.

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

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

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Awards & Recognitions

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🏆 HSBC Named Best International Bank in Sri Lanka by Euromoney

• Recognition: HSBC Sri Lanka won the Best International Bank in Sri Lanka title at the Euromoney Awards for Excellence 2026, along with its first-time win for Best for Securities Services. • Global Footprint: Operating in Sri Lanka for 134 years, HSBC links local clients to 31 international markets across Asia, North America, Europe, and the Middle East. • Core Capabilities: Highlighting strong cross-border execution, the banking sector giant covers global trade solutions, payments, lending, FX, and capital markets. • Industry Standing: Adds to HSBC’s earlier 2026 recognition as Best International Bank by FinanceAsia, alongside multiple regional Euromoney wins across Asia.

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📈 HNB Named Sri Lanka’s Best Bank for Large Corporates at Euromoney Awards 2026

HNB PLC has secured the "Best Bank for Large Corporates" title in Sri Lanka for the second time at the Euromoney Awards for Excellence 2026, reinforcing its position as a major financial partner for conglomerates, exporters, and infrastructure developers. Key Highlights & Transactions: • Major Project Financing: Arranged a Rs. 44.5 Bn syndicated financing facility for the 350MW Sobadhanavi power project, marking one of the largest project financing initiatives in Sri Lanka. • Cross-Border & Global Reach: Participated in a US$ 1.00 Bn sustainability-linked syndicated financing for Aster Chemicals and Energy (Singapore refinery acquisition) and backed cross-border acquisitions for tech firms like Surge Global and Calcey Technologies. • Digital & Ecosystem Scale: Transaction banking operations are supported by over 900 global correspondent banks and a corporate digital banking platform serving more than 6,000 corporate customers. • Economic Impact: The bank expanded its cross-border lending footprint in India, East Africa, and the Middle East, directly supporting the international expansion and diversification of Sri Lankan corporates.

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🏛️ 23rd Annual Geoffrey Bawa Memorial Lecture Announced

The Geoffrey Bawa Trust has announced details for this year’s prestigious Memorial Lecture, celebrating global architectural innovation. • Event Details: The lecture will take place on Thursday, 23 July 2026, at 6:30 p.m. at the Sri Lanka Foundation Institute, Colombo 07. Admission is free, subject to mandatory prior registration. • Featured Speaker: Renowned Japanese architect Junya Ishigami, founder of junya.ishigami+associates and winner of the 2010 Golden Lion award and 2026 Arnold W. Brunner Memorial Prize, will deliver the address. • Economic Context: The event, which highlights the intersection of organic design and built environments, is supported by Lanka Tiles, a key player in Sri Lanka's domestic manufacturing and construction materials sector.

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📈 CWIT Achieves Triple ISO Certification at Port of Colombo

Colombo West International Terminal (CWIT) has become the first container terminal at the Port of Colombo to secure three simultaneous ISO certifications under an Integrated Management System (IMS). • Global Standards: Achieved ISO 9001 (Quality), ISO 14001 (Environmental), and ISO 45001 (Occupational Health and Safety), setting a new benchmark for maritime & logistics operations in Sri Lanka. • Operational Growth: This milestone follows CWIT’s rapid achievement of handling one million TEUs within its first year. • Infrastructure Investment: The US$ 800 Mn terminal continues its Phase 2 expansion, featuring the region’s tallest electric Ship-to-Shore cranes and advanced automation to boost the port’s global competitiveness. • Strategic Impact: As a partnership between Adani Ports, John Keells Holdings, and the Sri Lanka Ports Authority, the terminal focuses on enhancing efficiency and sustainable practices to better serve the global shipping industry. This achievement underscores CWIT’s commitment to disciplined management and operational excellence, further strengthening Sri Lanka’s position as a key maritime gateway.

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🌴 Hiriketiya’s Raa Secures No. 71 on Asia’s Top 100 Bars List

Sri Lanka’s progressive bar scene achieved a significant regional milestone as Hiriketiya-based venue Raa ranked Number 71 on the 2026 Asia’s 50 Best Bars 51–100 extended list. • Overall Achievement: Moving up 13 spots from its debut at Number 84 last year, the venue's back-to-back recognition firmly establishes its position in regional mixology. The list is voted on by over 300 drinks experts across Asia. • Sector Impact & Innovation: Operating as the world’s first bar dedicated solely to Sri Lankan arrack and toddy-based cocktails, it is the only establishment globally serving fresh toddy tapped daily on-site. This showcases the potential of traditional ancestral crafts within the modern hospitality and tourism landscape. • Sustainability & Exporting Culture: Built as a low-impact circular ecosystem utilizing all elements of the coconut palm, the venue actively promotes Sri Lankan heritage. The team has scaled its reach via international guest shifts in key regional hubs, including Singapore, Bangalore, and Bangkok, driving global visibility for the island's independent hospitality sector.

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🏆 Ropewalk Galle debuts on Asia’s 50 Best Bars extended list

Sri Lankan mixology has achieved a major global milestone as Ropewalk Galle debuts at #93 on the prestigious Asia’s 50 Best Bars Extended List. • The Achievement: Ranked #93 globally, Ropewalk is the first and only bar in Galle—and only the third in Sri Lanka's history—to be featured on this esteemed travel and hospitality platform, achieving this feat within just over two years of opening. • The Concept: Operating as the world’s first arrack-speciality bar, it is housed within the 300-year-old Galle Fort Hotel (a UNESCO World Heritage site). It features an "arrack wall" showcasing over 75 expressions of Sri Lanka's indigenous spirit. • Economic & Tourism Impact: This recognition elevates Sri Lanka's unique local craft spirits onto the global culinary tourism map. By collaborating with international venues in Hong Kong, Singapore, Kathmandu, and Kolkata, the brand drives interest in Sri Lanka's tourism and hospitality sector. • Signature Serves: Key offerings highlighting local ingredients include the 'Ropewalk' (spice-infused Old Cask Arrack with ginger and lemongrass), 'Only Nabeel Likes This' (incorporating local kithul treacle and masala tea), and 'Gunpowder'.

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🏆 ITC Ratnadipa Wins 'Sustainable Smart Building of the Year' at SSA 2026

• The Recognition: ITC Ratnadipa, Colombo, was awarded the prestigious title at the Sri Lankan Sustainability Awards (SSA) 2026 on July 11, held in conjunction with the 14th World Construction Symposium (WCS) in Colombo. • Key Strengths: The property was recognized as Sri Lanka's leading smart building, celebrated for successfully integrating advanced technology, eco-friendly design, and environmental stewardship. • Sustainability Impact: Holding a coveted LEED Platinum certification, the hotel sets a benchmark for sustainable development and responsible hospitality, showcasing future-ready infrastructure within Sri Lanka's tourism and real estate sectors.

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Vietjet Honoured with Asia Work Awards Ahead of Colombo Launch ✈️

Vietnamese carrier Vietjet has been recognized at the HR Asia Awards 2026, marking its sixth consecutive year as one of the "Best Companies to Work For in Asia," alongside winning its first-ever HR Asia Diversity, Equity & Inclusion (DE&I) Award. • Sri Lanka Entry: The dual recognition arrives just ahead of Vietjet’s entry into the Sri Lankan market, with its inaugural Colombo – Ho Chi Minh City direct flight scheduled for 18 August 2026. This route will connect Sri Lankan travelers to Vietnam and wider destinations across Asia, Australia, and Europe. • Workforce Demographics: The airline employs nearly 10,000 professionals from over 68 countries. Approximately 30% of its workforce consists of young professionals aged 20 to 30. • Key Sectors & Training: To bolster its aviation & tourism capabilities, Vietjet invests in professional development via the Victoria Aviation Academy (VIAA), providing international-standard aviation training and leadership programs to support talent development.

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🚀 Sri Lanka's sixn.ai Triumphs at Asia's Largest AI Hackathon in Singapore

Sri Lankan Agentic AI Studio sixn.ai secured a major international victory at the SuperAI NEXT Hackathon 2026 in Singapore, positioning the nation as an emerging hub for advanced artificial intelligence product innovation. • Overall Achievement: Out of 700 applicants, 80 competing teams, and participants from 26 countries, sixn.ai was the only Sri Lankan company to finish in the overall Top 5. • Awards Won: Secured a Top 5 overall finish and won the prestigious "Best Use of Stripe Award" for its product, Bloom. • The Innovation: Developed within a tight 36-hour timeframe, Bloom is an AI-powered fashion companion that showcases the practical potential of Agentic AI by understanding user intent, coordinating workflows, and executing autonomous commerce tasks. • Economic Context: Headquartered in Colombo, sixn.ai's success signals a strategic shift for Sri Lanka's ICT/BPM sector—moving from a traditional technology outsourcing destination toward a creator of globally competitive, AI-native products.

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📈 Sri Lanka Secures Spot in TTW’s Top 50 Global Food Destinations for 2026

Travel And Tour World (TTW) has officially ranked Sri Lanka 50th globally in its Top 50 Food Destinations Around the World for 2026, marking a significant milestone for the island's tourism and hospitality sector as culinary tourism increasingly drives contemporary travel. • Global Ranking Context: The index evaluates destinations on culinary heritage, regional diversity, and sustainability. Mexico secured the number 1 spot globally, followed by Italy and Spain. Within the Asia-Pacific region, Sri Lanka joins major culinary hubs like Japan (4), India (5), and China (9). • Regional Breakdown & Highlights: The ranking acknowledges Sri Lanka’s unique position as a destination where gastronomy embodies cultural identity, highlighting 10 key local hubs: Colombo: Celebred for street food like kottu roti, hoppers, and rice & curry. Jaffna: Highlighted for its distinct Tamil flavors and signature crab curry. Nuwara Eliya & Ella: Recognized for hill-country organic produce and tea-inspired dishes. Coastal Hubs (Galle, Negombo, Mirissa, Hikkaduwa, Trincomalee): Celebrated for lagoon seafood and beachfront dining. Kandy: Showcasing traditional cuisine and local sweets. • Economic Implications: This recognition underscores the diversification of Sri Lanka's travel products beyond traditional beach holidays, positioning local agriculture, spices, and the food & beverage industry as core drivers of high-value experiential tourism and regional employment.

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🏆 Union Assurance Wins Prestigious Global Celent Model Insurer Award 2026

Sri Lankan life insurer Union Assurance has been named a Model Insurer for Customer Experience at the Celent Model Insurer Awards 2026. This marks the second time the company has received this honor, making it the only Sri Lankan insurer to ever be recognized on this global stage. • Key Recognition Highlights: The award was secured for the company's "Connected Life Initiative," powered by the Clicklife App. The program provides an end-to-end digital lifecycle spanning insurance education, automated underwriting, and real-time claims tracking. It also features "Clicklife Suwamaga+," an AI-powered wellness ecosystem. • Operational & Performance Metrics: The digital initiative has surpassed 100,000 app downloads. Achieved a 69% straight-through processing (STP) rate for automated underwriting. Reduced claims processing effort by over 80%, cutting average handling times down from 25–30 minutes to approximately 5 minutes. Features a 24/7 self-service platform with 100% digital submissions and integrated electronic medical/lab report exchanges. • Strategic Context: The recognition highlights the strength of Sri Lanka's financial services and technology capabilities, with the platform being engineered entirely in-house by local talent. This milestone follows the company's initial 2020 Celent award for core technology modernization, demonstrating a long-term digital transformation roadmap within the domestic insurance sector.

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📈 CSSL Marks Golden Jubilee, Driving Sri Lanka's Digital Economy

The Computer Society of Sri Lanka (CSSL) celebrated its 50th anniversary on July 7, 2026, at the BMICH, reaffirming its commitment to advancing the nation’s ICT/BPM and digital ecosystem. • Key Highlights & Initiatives 50 years of professional leadership, innovation, and policy advocacy in Sri Lanka's ICT/BPM sector since its establishment in 1976. Active leadership in critical emerging technologies, including artificial intelligence, cybersecurity, cloud computing, and digital public infrastructure. Key national platforms highlighted include the National IT Conference (NITC), the National CIO Forum, and the CSSL Colloquium 2026. • National & Economic Impact Public-Private Collaboration: Strategic alignment with the Ministry of Digital Economy to accelerate digital transformation, attract foreign investment, and generate high-value employment. Sector Integration: Showcased tech-driven grassroot transformations, such as the GoviNext agriculture startup program in partnership with Neo Ventures, NIBM, and the Ministry of Agriculture. Future Focus: Prioritizing "Society 5.0" to foster human-centric digital adoption, ensuring sustainable, inclusive, and ethical economic growth.

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Industry & Sector News

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📈 AI Reshapes Sri Lanka’s Hospitality and Tourism Future

Industry experts at the 'EME Level Up: AI Hospitality Connect Sri Lanka 2026' conference revealed how artificial intelligence is redefining brand discovery, guest experiences, and marketing for Sri Lanka’s hospitality and tourism sectors. • AI Adoption & Traveler Trends • 84% of AI-using travelers report an enhanced experience, saving 1–3 hours per trip. • Nearly 50% of travelers use Generative AI for trip planning, with queries averaging 3x longer than traditional searches. • 70% of surveyed travelers are willing to manage travel within an AI-Agentic ecosystem. • AI Brand Visibility & Search Shift • 1,207 Sri Lankan hotel brands were discovered across 32 segments (e.g., beach, luxury, wellness) on ChatGPT, Gemini, Perplexity, and Claude. • Hotels are shifting from traditional SEO to Generative Engine Optimization (GEO) to secure direct recommendations in AI-driven search results. • Colombo Sentiment & Score-to-Revenue Benchmarking • Based on 2.4+ Mn reviews across 394 properties, Colombo achieved a Reputation Performance Score (RPS) of 87.45%. • Strong positive sentiment: location, beach, service, pool facilities, and food. • Highest negative sentiment: cleanliness, amenities, room comfort, and Wi-Fi connectivity. • Value of 1 RPS Point: Colombo generates US$ 222,000 in revenue, trailing Bangkok (US$ 283,000) and Singapore (US$ 641,000). • National Context & Strategic Focus • Industry leaders emphasized creating reliable, structured digital content to market undiscovered Sri Lankan destinations and reduce commission leakage to Online Travel Agencies (OTAs).

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📈 Sri Lanka Marketing Shift: Prioritizing Experiences Over Logos

• Strategic Market Shift: Sri Lankan brands face a vision gap rather than a creative shortage, frequently prioritizing stage logos and visibility over immersive experiences in marketing and events. Modern consumer trends demand active participation and memorable engagement over traditional advertising. • Key Event Metrics: • 97% of event professionals deem in-person experiences critical to marketing strategy, and 95% view experiential design as essential. • 70% of event planners face flat YoY budgets, with 61% identifying budget limits as their main constraint. • 82% of organizers prioritize qualitative attendee feedback alongside attendance numbers (83%). • Sector Highlights: • Interactive activations—such as integrating Ceylon tea into live culinary showcases—highlight the power of experiential engagement over basic exposure. • Early collaboration across marketing, set design, and creative industries turns sponsorship from a commercial expense into long-term brand equity.

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📈 CIPM Sri Lanka Marks 10th International Research Symposium Milestone

The Chartered Institute of Personnel Management (CIPM) Sri Lanka held its 10th International Research Symposium 2026 under the theme _“Elevating the Human Capital Equation: HRM in the Age of Transformation.”_ The event highlighted the institution's role in advancing research-driven insights and evidence-based decision-making for Sri Lanka's human resource management sector. • Research Growth & International Scope: • Total Submissions: 160 research papers (up from 35 papers at its 2015 inception). • Accepted Papers: 138 peer-reviewed papers accepted for presentation. • Global Participation: Included 27 international research papers, signaling expanding global recognition. • Key Industry & Sector Focus: • Emphasized strategic HR leadership, digital transformation, ethical AI integration, and sustainable workforce practices to support national organizational resilience. • Bridged academia and industry to drive innovation and value creation across enterprise operations. • Unveiled major HR knowledge publications, including a corporate HR case study publication and a special edition of the _Journal of Human Resource Management Perspectives_. • Sponsorships & Strategic Partners: • Supported by telecommunications leader Sri Lanka Telecom (Main Sponsor), apparel & textiles giant Omega Line Group (Gold Sponsor), and Varun Beverages Lanka Ltd. (Beverage Partner).

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📈 Sri Lanka Financial Sector Growth via Digital Transformation

• Strategic Ambitions: Aligns with the National Digital Economy Strategy 2030, targeting a US$ 15 Bn digital economy and 95% digital literacy by 2030 (currently at 65%). • Role of Banking: Digital transformation is highlighted as a core economic agenda to rebuild trust, reduce operational costs, and boost resilience across banking & financial services. • AI & Data Intelligence: Modern financial services must shift beyond simple process digitisation toward trusted AI, connected data, and customer-centric intelligence. • Ecosystem Lessons from India: Adopting a unified Digital Public Infrastructure model—similar to India's UPI processing over 18 Bn monthly transactions—can drive scale and inclusion across FinTech and rural communities. • Future Priorities: Transition banks into engines of national growth by combining governance, digital literacy, and data intelligence to convert economic resilience into competitiveness.

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📈 Port City Colombo Drives Sri Lanka’s ICT Growth Chapter

• National Export Shift ICT/BPM export earnings reached US$ 1.64 Bn in 2025, overtaking tea as Sri Lanka's second-largest export earner. The industry spans over 500 companies and employs approximately 146,000 professionals. • Port City Colombo Impact By providing a designated foreign currency environment, Port City Colombo helps reduce friction in international invoicing, procurement, and payroll. The special economic zone also serves as a strategic mechanism to retain and attract top talent locally. • Firm Growth Case Study Early entrant IGT I (Outsourcing Lanka) has expanded to over 500 employees since entering the zone in March 2024, servicing international clients across the Americas, Europe, and the Middle East. • Key Policy & Regulatory Developments • Strategic Status: Cabinet granted approval to 77 Businesses of Strategic Importance (BSIs) in April 2026. • Tax Revisions: The 2026 amendment to the Colombo Port City Economic Commission Act transitioned employee tax treatment from open-ended exemptions to a transitional model for existing entities and standard rates for new entrants. • Operational Needs: Industry leaders emphasize the importance of policy predictability and transitioning from manual processes to fully digital workflows (e.g., digital signatures).

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🚨 Organised Cash Crop Theft Threatens Plantation Sector

• Overview: The Planters’ Association of Ceylon (PA) has urged the Govt to address systematic crop theft, warning it severely erodes export competitiveness, deters investment, and threatens farmer livelihoods across Sri Lanka’s plantation districts. • Financial & Sector Impact: - Heavy losses reported in high-value non-traditional crops including pepper, cardamom, cinnamon, ginger, vanilla, and avocado. - Security expenditures are crippling profitability; one RPC spends ~Rs. 20 million over 3 months to protect a single crop. - Growers are pulling back from expansion; a planned 18-hectare cardamom project was suspended due to unsustainable security costs. - Undermining national export diversification goals and competing against lower-cost regional producers in Vietnam, India, and Kenya. • Key Operational Issues: - Organized groups target fields during full-moon nights; crops quickly enter untraceable informal supply chains. - High-tech solutions (CCTV, drones) remain ineffective due to power cuts, terrain, and equipment theft. - Current legal penalties are inadequate and fail to serve as a financial deterrent. • Industry Demands: The PA calls for strict legal penalty revisions reflecting actual crop value, a traceability framework for informal supply chains, and formal recognition of crop theft in national agricultural policy. Based on ongoing data collection by PA.

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⚡ Ceylon Chamber Urges Policy & Grid Reforms for Renewable Transition

• Key Demands & Policy Shift: The Ceylon Chamber of Commerce and energy stakeholders have called for policy consistency, streamlined approval processes, land clearance, and transparent procurement frameworks to drive private investment and boost grid stability. • Sector Focus & Market Adoption: Priority is set on expanding solar power and distributed renewable capacity. Net metering and feed-in arrangements are highlighted as key tools to drive commercial and industrial adoption by enabling surplus power sales back to the grid. • Financial & Infrastructure Priorities: Reforms must address developer payment delays, access to capital, bankable project structures, and technical standards for energy storage integration. • Demand Drivers & Future Outlook: Power demand is expected to surge alongside growing ICT/BPM, AI, data centre, and electric vehicle (EV) adoption. Modernizing intelligent grids and enhancing industry-academia training are urged to safeguard national economic competitiveness.

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Sri Lanka Tourism Arrivals Slip 0.6% YoY in Mid-July Amid Middle East Aviation Disruptions ✈️

• Arrivals Performance - Recorded 118,935 tourist arrivals in the first 19 days of July, down 0.6% YoY but reflecting a 61.5% MoM rebound compared to June. - Daily average arrivals stood at 6,260, peaking at 7,690 visitors on 18 July. - Year-to-date (YTD) arrivals reached over 1.26 Mn, down 1.72% YoY compared to 1.28 Mn in the same period last year. • Top Source Markets - India remained the largest source market with 27,574 visitors (23% of total arrivals). - Followed by the UK with 12,786 (10%), China with 7,147 (6%), the Netherlands with 6,770 (6%), and Australia with 6,699 (6%). • Macro Context & Sector Targets - Airspace and flight disruptions in the Middle East continue to constrain long-haul European transit routes feeding Sri Lanka’s tourism sector. - Government has fast-tracked a visa-free entry scheme for citizens of 40 countries to boost demand. - Revised 2026 national targets down to 2.5 Mn arrivals and US$ 3.5 Bn in tourism earnings (from original goals of 3 Mn arrivals and US$ 4 Bn). - Achieving revised goals requires ~200,000 monthly arrivals, driven by 75,000–100,000 high-spending Indian visitors.

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📈 Women-Led MSMEs Secure Rs. 145.5 Bn in Banking Loans Under New Code

Women entrepreneurs in Sri Lanka have made significant strides in credit access during the first year of the Women Entrepreneurs Finance (WE Finance) Code implementation, according to the Finance Ministry's inaugural 2025/26 annual report. • Overall Figures & Credit Portfolio - Women-owned and women-led MSMEs held Rs. 559 Bn in outstanding loans as of end-March 2026. - Represents 28% of the nearly Rs. 2 Tn total MSME loan portfolio reported by 12 participating domestic banks. - Overall MSME portfolio accounts for ~20% of total private sector credit, which reached Rs. 10.14 Tn (+2.6% MoM). • New Lending & Approval Breakdown - Rs. 145.5 Bn in new loans approved for women-led businesses in 2025/26. - Women secured 26,087 loan approvals (30% of total approved MSME loans). - By value, women received 20% of the Rs. 709.84 Bn total new MSME loans disbursed. • Account Ownership vs. Credit Value - Women held 46% (~782,000) of the 1.7 Mn active MSME business loan accounts. - Highlights a gap: while account ownership is near-equal, loan value share remains lower at 28%. • Key Highlights & Framework - Launched in March 2025 with ADB assistance, making Sri Lanka South Asia’s first adopter. - Standardized national definition established across 13 participating financial institutions. - Central Bank (CBSL) now tracks gender-disaggregated data to improve financial inclusion and informal enterprise integration.

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📈 Textile Expo Intex & InMac Sri Lanka 2026 Set for August 5-7

The premier international textile sourcing and garment machinery exhibitions—Intex and InMac—will return to the BMICH in Colombo from August 5 to 7, 2026, to accelerate the country's apparel export ambitions. • Key Highlights: • The co-located events aim to power Sri Lanka’s vision to achieve US$ 8 Bn in apparel & textiles exports by 2030. • It stands as the largest-ever edition, hosting over 300 international companies from more than 15 countries and regions to modernize the local supply chain. • Features the event's largest-ever China Pavilion alongside strong Indian participation, reflecting deep global market confidence. • Sector & Technology Focus: • Intex Sri Lanka: Focuses on upstream innovations in fibres, yarns, fabrics, accessories, and sustainable materials, connecting local manufacturers with buyers across South Asia, ASEAN, Europe, and the Middle East. • InMac Sri Lanka: Dedicated to automation and smart manufacturing, debuting next-generation sewing, cutting, digital printing, and eco-friendly finishing systems to transition factories into high-margin hubs. • Knowledge Sharing: Features a 3-day Interactive Business Forum (IBF) exploring industry-critical themes including circularity, sustainability, and digital transformation.

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📈 Sri Lanka Tourist Arrivals Top 90,000 in First Half of July

Sri Lanka welcomed 90,122 tourists in the first 15 days of July 2026, marking a minor 3.04% decline compared to the 92,951 visitors recorded during the same period in 2025. Overall Performance & Daily Flows • Daily arrivals averaged 6,008 visitors, driven by school holidays and cultural events. • Weekly breakdown: 40,821 arrivals in week one, 43,387 in week two, and 5,914 on July 15. The peak daily inflow reached 6,636 on July 11. • Year-to-Date (YTD) cumulative arrivals reached over 1.23 million, running 2% below the corresponding period last year. Top Source Markets (July 1–15) • India: Maintained its top spot with 20,480 visitors (23% share). • United Kingdom: Ranked second with 9,277 visitors (10% share). • China & Australia: Contributed 6% each, with 5,494 and 5,487 arrivals respectively. • Netherlands: Accounted for 5% with 4,744 visitors. Cumulative YTD Leaderboard • India leads the 2026 cumulative tally with 314,163 visitors (25% share). • United Kingdom follows with 117,844 arrivals (10% share). • China holds the third position with 81,665 tourists (7% share). _Note: Figures are based on provisional daily monitoring data for the specified periods._

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📈 FACETS Sri Lanka 2027: 34th Edition Dates & Key Partnerships Unveiled

The Sri Lanka Gem & Jewellery Association (SLGJA) has officially announced the 34th edition of its premier international exhibition, FACETS Sri Lanka 2027. The event serves as a major catalyst for showcasing the island's craftsmanship, driving export growth, and generating vital foreign exchange. • Event Details: Scheduled to take place from 4th to 6th January 2027 at Cinnamon Life at City of Dreams Colombo. • Exhibitor & Buyer Footprint: Will feature over 100 local exhibitors. Key international buyer delegations are expected from major global markets, including the USA, Europe, the Middle East, India, China, and Thailand. • Key Highlights: The exhibition will feature specialized pavilions for Sri Lanka's world-renowned sapphires and contemporary luxury jewellery, alongside events like Sapphire Night, a Power Breakfast, and exclusive Mine and Port City tours. • Institutional Support: Supported by the Export Development Board (EDB) and the National Gem & Jewellery Authority (NGJA) to strengthen global trade linkages and uphold high industry standards. • Future Outlook: In a move to ensure long-term industry planning, the SLGJA announced dates for the next three years: - FACETS 2028: Jan 5–7 - FACETS 2029: Jan 4–6 - FACETS 2030: Jan 6–8

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Sustainability, ESG & Corporate Responsibility

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🌱 Nestlé Lanka Drives Climate Action with Island-Wide Youth Video Competition

Nestlé Lanka partnered with the Central Environmental Authority (CEA) and the Ministry of Education to host an All Island Short Video Competition themed ‘Reducing climate change through responsible waste management.’ • Event Highlights: Organized in celebration of World Environment Day, the initiative focused on fostering positive behavioral changes around waste disposal and circular economy concepts among Sri Lanka's youth. • Competition Categories: Featured both School and Open categories, evaluated by a panel of academic, media, and photography experts. • Top School Category Winners: • 1st Place: Binadi Jihansa Basnayake (Thelijjawila Central College) • 2nd Place: U.J. Sayuni Tharumindi (Thelijjawila Central College) • 3rd Place: Group Entry from Thelijjawila Central College • Corporate Commitment: Aligns with Nestlé Lanka’s 120-year presence in Sri Lanka, emphasizing sustainability, youth empowerment, and public-private collaboration to support waste segregation and collection systems.

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📈 Teejay Accelerates Decarbonization via US$ 5.2Mn Energy Transition

Sri Lankan fabric manufacturer Teejay is investing US$ 5.22 million in solar and biomass projects to counter regional competition, talent loss, and volatile imported fuel costs, fast-tracking its sustainability goals. • Energy Investments & Operational Impact Rooftop Solar: Investing US$ 2.57 Mn in a 7.2 MW rooftop solar installation. Despite a low 17% solar yield due to local weather stretching payback to 10–11 years, the project acts as fuel price insurance. It will boost the site’s renewable energy share by 17% and cut emissions by 13%. Grid connection is expected by September 2026. Biomass Transition: Investing US$ 2.65 Mn to shift from coal to certified biomass under its Abhivarah 2030 strategy. This will cut facility-level greenhouse gas emissions by 49%, increase renewable energy use by 42%, and reduce fuel costs by 25–30% by replacing imported coal with locally sourced fuel. • Sustainability & Climate Targets Emissions Reduction: Together, these initiatives are expected to meet Teejay's Science Based Targets initiative (SBTi) goal of a 42% cut in Scope 1 and 2 emissions (against a 2022 baseline) by September 2026—years ahead of the 2030 schedule. Current progress stands at 4.5%. Compliance & reporting: Data is verified against ISO 14064, alongside the company’s first IFRS S1 and S2 disclosures. Future Focus: While direct operations are being decarbonized, the company is now targeting Scope 3 value-chain emissions through enhanced supplier engagement and circularity initiatives.

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📈 IFC & HSBC Back US$ 40 Mn Investment for Port of Colombo Modernization

• Overall Figures: Total investment of up to US$ 40 Mn in South Asia Gateway Terminals (Pvt) Ltd (SAGT) via a sustainability-linked loan of up to US$ 20 Mn from IFC (including up to US$ 8.57 Mn mobilized via MCPP) and a parallel green loan of up to US$ 20 Mn from HSBC. • Key Objectives: Modernize and decarbonize operations at the Port of Colombo, funding advanced twin-lift ship-to-shore cranes to boost productivity and reduce energy use. • Impact & Projections: Raises quay-side productivity by at least 11%, expands handling capacity for transshipment and domestic container traffic, lowers the carbon footprint, and creates jobs while boosting opportunities for women. • Strategic Context: Reinforces Sri Lanka's position as South Asia's leading transshipment hub, supporting the maritime and logistics sector which contributes around 2.5% of GDP.

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🔬 Rs. 204 Mn Lab Equipment Boosts Sri Lanka's Chemical Regulation Capacity

The Ministry of Environment and UNDP Sri Lanka have handed over advanced analytical laboratory equipment to six key national institutions to strengthen the country's capacity to detect, regulate, and manage hazardous chemicals and pollutants. Key Deliverables & Scope: • Investment Value: Approximately Rs. 204 Mn (est. US$ 663,000), funded via the Global Environment Facility (GEF). • Beneficiary Institutions: Received by 6 entities including the Department of Agriculture, Sri Lanka Customs, Central Environmental Authority, University of Sabaragamuwa, Consumer Affairs Authority, and the Government Analyst’s Department. • Core Objective: To upgrade infrastructure for life-cycle tracking—from import border control to market surveillance—specifically targeting mercury and Persistent Organic Pollutants (POPs). Economic & Policy Impact: • National Framework: Aligns with the updated National Environmental Act and ensures compliance with global treaties (Basel, Rotterdam, Stockholm, and Minamata Conventions). • Project Scale: Part of a larger US$ 5.04 Mn project aimed at establishing a centralized chemicals database, boosting green procurement, and enhancing institutional capacity. • Sustainability: Complemented by MoUs ensuring cross-agency equipment sharing and long-term maintenance arrangements to maximize the investment value.

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Sri Lanka to Host Flagship UN Global Compact APAC 2026 Summit 📈

Sri Lanka will host Forward Faster Now | APAC 2026, the United Nations Global Compact’s flagship regional event, scheduled for August 11–12, 2026, in Colombo. The event coincides with the 15th anniversary of the UN Global Compact Network Sri Lanka. • Overall Event Scope: The two-day summit will convene more than 200 business leaders, sustainability practitioners, policymakers, and UN representatives from across 15 countries in the Asia-Pacific region. • Strategic Focus Areas: Sessions will target key transitions for regional businesses, focusing on climate action, sustainable finance, water resilience, governance, gender equality, human rights, and digital innovation. The framework aims to implement the UN Global Compact’s 2026–2030 Strategy to accelerate corporate transformation. • Key Highlights: Sanda Ojiambo, Assistant Secretary-General and CEO of the UN Global Compact, will make her first official visit to Sri Lanka to engage with regional private sector leaders. The event will feature the SDG Investment Forum, organized alongside the UN Principles for Responsible Investment (UN PRI) and the UNEP Finance Initiative (UNEP FI), dedicated to mobilizing public and private capital for sustainable growth. • National & Economic Context: Hosting this flagship event highlights the growing capabilities and regional influence of Sri Lanka's corporate sustainability network, offering local industries a platform to align with international ESG compliance, support responsible supply chains, and drive long-term value creation.

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🌱 CDB Joins Global Carbon Accounting Network for Green Financing

Citizens Development Business Finance PLC (CDB) has officially become a signatory to the Partnership for Carbon Accounting Financials (PCAF), reinforcing its commitment to Sri Lanka's low-carbon transition. • Strategic Commitment: CDB joins a global network of over 700 financial institutions across six continents. The partnership establishes a harmonized framework to measure and disclose greenhouse gas (GHG) emissions linked directly to its lending and investment portfolios. • National & Financial Context: The move shifts focus toward financed emissions—where CDB's largest environmental impact lies—rather than just internal operations. By adopting the PCAF Standard, CDB aligns with evolving local regulatory expectations, specifically the Sri Lanka Financial Reporting Standard (SLFRS) S2. • Economic Impact: The integration supports CDB’s dual-pillar sustainability strategy (Net Zero and Social Consciousness). It allows the institution to drive decarbonization across local industries, manage climate risks in long-term growth planning, and empower greener financing decisions to support Sri Lanka's broader climate transition.

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🏗️ INSEE Cement & CCI Partner to Upskill 100 Sri Lankan Masons with NVQ Certification

The Chamber of Construction Industry (CCI) Sri Lanka and Siam City Cement (Lanka) PLC (INSEE) signed an MoU on July 13, 2026, to provide National Vocational Qualification (NVQ) certification to 100 masons. • The Context: Over 80% of tradesmen currently working at construction sites in Sri Lanka lack any formal skills certification, leading to a lack of common quality standards and norms across the industry. • The Approach: The program utilizes the Recognition of Prior Learning (RPL) method. This allows experienced, informal workers—who typically entered the industry as helpers to Baas Unnahas—to secure national qualifications without attending traditional trade schools. • Industry Impact: Bringing tradesmen under a single certification umbrella aims to drive uniformity and establish proper work standards. It opens paths for local career progression and equips workers with recognized credentials for better-paying employment opportunities abroad. • Sponsorship & Facilities: Initiated by the Tertiary and Vocational Education Commission, INSEE Cement is acting as the primary benefactor for masons, tilers, and plasterers by providing tools, materials, and facilities in Galle, Puttalam, and Colombo free of charge. The program is co-sponsored by the HWK Chamber of Skilled Crafts Frankfurt-Rhine-Main.

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🌱 Ceylon Chamber to Launch Revamped ESG Reporting Framework for BCCS 2026

The Ceylon Chamber of Commerce will host a launch seminar on 30 July 2026 at the Chamber Auditorium to guide businesses on the updated evaluation framework for the Best Corporate Citizen Sustainability Awards (BCCS 2026). • Core Focus: The session aims to help Sri Lankan corporates transition from standalone initiatives to embedding Environmental, Social, and Governance (ESG) strategies directly into decision-making, risk management, and overall business operations. • Key Evaluation Areas: Stakeholder engagement and materiality assessments (both impact and financial materiality). Setting measurable targets, tracking performance, and long-term sustainability planning. Demonstrating future-focused commitments through evidence-based disclosures. • Economic Relevance: By aligning with evolving global sustainability expectations, the revamped framework helps local industries—such as apparel & textiles and tea—strengthen their ESG credentials, which is crucial for maintaining competitiveness in premium export markets. _Note: Interested organisations can contact the Ceylon Chamber (Oshadhi at 0115588851 or Ashani at 0115588830) for registration._

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🟢 Lessons for Sri Lanka from China's 1,000-Year-Old Tea Heritage

• Jingmai Mountain’s Living Heritage: Located in Yunnan Province, China, this UNESCO World Heritage Site spans nearly 1,900 hectares of protected forest. It contains over 3.2 million ancient tea trees, some over 1,000 years old, growing naturally under native forest canopies. • Independent & Lucrative Model: Over 4,000 independent ethnic families manage the land, deciding their own harvest and sales. This sustainable agro-forestry system generates over 90% of household income directly from premium, chemical-free specialty tea. • Premium & Niche Focus: Jingmai produces nearly 4,000 tons of tea during its spring harvest—representing just 0.1% of China's 3.5 million-ton annual output. Rather than competing on mass volume, it positions itself as a premium specialty product commanding high niche prices. • Reversing Urban Migration: Strong heritage branding and digital e-commerce are driving younger, educated locals to return from major cities to establish boutique homestays and online tea startups. • Key Takeaway for Ceylon Tea: Sri Lanka's hill country tea regions—currently on UNESCO’s Tentative List—can leverage this model. Transitioning from a volume-driven agricultural commodity to a valued cultural landscape can help protect ecosystems, attract high-value tourism, command premium global prices, and directly uplift estate communities.

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🏢 Cabinet Approves € 924,063 German Grant for Energy-Efficient Buildings

The Cabinet of Ministers has approved the implementation of a German-funded program to promote energy-efficient and climate-resilient buildings in Sri Lanka, backed by a technical cooperation financial grant. Key Highlights: • Funding Total: A grant of € 924,063 (approximately Rs. 314 million) provided under the existing framework agreement on technical cooperation between the Governments of Sri Lanka and Germany. • Implementation & Framework: The initiative will be executed by the German development agency, GIZ, in collaboration with Sri Lanka’s Ministry of Energy and the Sustainable Energy Authority. • Economic & National Impact: The program focuses on sustainable infrastructure by supporting Sri Lanka in developing policies, institutional frameworks, and technical capacity. This will directly improve the design, construction, and maintenance of energy-efficient and climate-resilient buildings, driving the country's green transition and reducing long-term energy costs.

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📈 Gender Equity Evolution: The Rise of the “Playpen Man”

Based on policy analysis published on July 15, 2026, the next stage of gender equity in Sri Lanka and globally requires shifting focus toward structural changes that support modern men who actively co-own domestic labour and care. • Overall Dynamics & Structural Realities Cultural expectations are moving faster than institutional adaptation, creating role compression for younger cohorts like Millennials and Gen Z. Despite increased egalitarian attitudes, a significant attitude–action gap remains due to workplaces rewarding uninterrupted availability and policies treating caregiving as primarily maternal. • Policy & Institutional Gaps Current frameworks frequently treat parental leave and flexible work as concessions to women alone, rather than shared family responsibilities. Economies continue to undervalue unpaid care, leaving men's evolving contributions invisible in national data. • Key Recommendations for Socio-Economic Reform Redesign Labour Policy: Reframe parental leave and flexible work infrastructure around shared participation. Actively enabling men to care structurally empowers women to work and lead, driving broader economic diversification and workforce participation. Expand Cultural Definitions: Move away from rigid patriarchal metrics of masculinity (authority, stoicism) to allow multidimensional traits, ensuring professionals are not penalised for being present caregivers.

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📈 Alliance Finance Broadens Green Bond Framework to Refinance Rooftop Solar Portfolio

Alliance Finance Company PLC has amended its Green Bond Framework to optimize capital deployment while maintaining strict compliance with international green finance standards. • Refinancing Structure: The revised framework allows up to 30% of total Green Bond proceeds to be used for refinancing existing, eligible rooftop solar projects. A two-year look-back period applies, meaning projects must have been approved and commissioned within two years of being earmarked for funding. • Capital Flexibility: Any unutilised allocation from the solar equipment vendors and suppliers category can now be redirected toward rooftop solar financing. All refinanced projects must demonstrate meaningful environmental impact. • Compliance & Verification: The amendments have been independently reviewed by Deloitte Partners, confirming alignment with the International Capital Market Association’s (ICMA) Green Bond Principles (June 2025). An external assurance report has also been secured. • National Context: Initially launched in February 2025 as a Rs. 1 billion issuance, this marked Sri Lanka's first Green Bond by a Non-Banking Financial Institution (NBFI), featuring a dual listing on the Colombo and Luxembourg Stock Exchanges. The proceeds directly support Sri Lanka's national targets of 70% renewable electricity by 2030 and carbon neutrality by 2050.

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Startups & Entrepreneurship

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

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

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👗 Ye Couture: Sri Lankan Luxury Fashion Brand Expands Globally

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

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

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

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

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

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

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

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

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

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AI Pioneer Suggests Sri Lanka Leapfrog via Precision Brain Healthcare 🧠

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

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📈 Over 250 Gather for Kalutara Business & Investment Summit

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

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🚕 HelaGo Surpasses 1 Mn Kilometres in Just Five Months

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

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Uncategorized

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📈 Data Timeout Alert: Content Extraction Unsuccessful

• Extraction Status: Article retrieval failed due to a server connection timeout (30s) from the source host. • Data Availability: Detailed economic figures, sector updates, and YoY growth metrics are currently unavailable for this specific news item. _Note: Summary generated based on provisional transmission metadata._

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🚨 Former Sri Lankan IGP C.D. Wickramaratne Passes Away After Gunshot Incident

• Incident Details: Former Inspector General of Police (IGP) C.D. Wickramaratne died yesterday after sustaining gunshot injuries at his residence on Parakrama Road, Thalahena, located within the Malabe Police Division. • Official Actions: Following the incident, Wickramaratne was admitted to the Eastern Colombo Teaching Hospital, where he was pronounced dead. The body remains at the hospital pending a post-mortem examination. • Investigation Status: The Malabe Police have commenced official investigations. Further inquiries are being actively conducted by the Western Province South Division Criminal Branch in coordination with the Malabe Police. Two specialized police teams have been deployed to investigate the case. • National Context & Service: Wickramaratne served as Sri Lanka's 35th Inspector General of Police, holding the top post in the nation's law enforcement and internal security apparatus from 27 November 2020 until his retirement on 23 November 2023. He was 63 years old at the time of his passing.

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Warrants Issued for Deputy Minister & NPP MP Over Court No-Show 📈

The Fort Magistrate’s Court has ordered the arrest of Urban Development Deputy Minister Eranga Gunasekara, NPP MP Jagath Manuwarna, and four others after they failed to appear for a scheduled hearing. Key details based on the court proceedings: • Accused Individuals: Warrants were issued by Additional Magistrate Kingsley Hettiarachchi against Deputy Minister Eranga Gunasekara, MP Jagath Manuwarna, Roshan Ali Dhaniz Ali, Amal Salinda (alias "Army Amila"), Udayanga Kumara, and Ven. Koswatte Mahanama Thero. • Legal Charges: The six individuals, who are currently out on bail, face charges related to participating in protests and being members of an unlawful assembly in violation of a court order. • Next Steps: The court has issued formal notices to the sureties who stood bail for the accused. The case has been fixed for its next hearing on 4 December 2026.

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🏛️ Sri Lanka’s Civilisational Heritage Named a Key Strategic Asset

• The Core Asset: A former Sri Lankan Ambassador highlights the nation’s Theravāda Buddhist heritage not merely as a religious legacy, but as a primary strategic asset to strengthen national identity, ethical leadership, and social harmony. • Economic & Diplomatic Value: Confidently positioning Sri Lanka as a global hub for Theravāda scholarship, archaeology, and peace studies can directly boost tourism (specifically cultural tourism), education, and research. It can also elevate the island's international standing and cultural diplomacy. • Governance & Moral Recovery: Economic recovery alone is insufficient for sustainable progress. The article urges modern leaders to seek moral counsel from Buddhist clergy and other religious and civil leaders to restore public trust, integrity, and civic responsibility. • Pluralistic Unity: Prioritizing this heritage does not diminish the contributions of Hindu, Muslim, or Christian communities. True Buddhist values emphasize compassion and justice, which support a diverse, united, and prosperous nation. _Note: Summary based on an editorial by a former Sri Lankan Ambassador._

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🚨 HRCSL Investigates Negombo & Welikada Prison Misconduct

The Human Rights Commission of Sri Lanka (HRCSL) has launched a formal investigation into allegations of torture, ill-treatment, and deaths in custody following recent violence at Negombo Prison, while severely criticizing prison authorities for obstructing statutory oversight. Key Findings & Violations: • Denial of Legal Access: Welikada Prison officials unlawfully denied HRCSL inspectors entry on the night of July 7, violating the HRCSL Act No. 21 of 1996, which guarantees unrestricted, unannounced inspection rights. Prison claims of a "volatile security situation" were rejected by the Commission. • Inmate Abuse & Reprisals: Transferred inmates from Negombo alleged targeted torture and denial of critical medical treatment. Inspectors observed visible, untreated injuries on several prisoners. • Unlawful Detention: The HRCSL discovered that multiple transferred inmates remained in custody despite having already completed their prison sentences. • Risk of Enforced Disappearance: Authorities delayed disclosing the locations of transferred prisoners to their families. The HRCSL warned this prolonged nondisclosure could breach the International Convention for the Protection of All Persons from Enforced Disappearance Act No. 5 of 2018. HRCSL Directives: • Issue an immediate circular reaffirming the Commission’s absolute inspection powers. • Enforce strict orders prohibiting any reprisals or assaults against transferred inmates. • Execute the immediate disclosure of all prisoner locations to next of kin. • Ensure the prompt release of all inmates who have fully served their sentences.

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🚨 Road Drains Driving 70% of Dengue Risk, Study Reveals

A new research study by Priyantha Wickramarathna and Prof. S.P. Samarakoon reveals a major gap in Sri Lanka's dengue prevention, showing that national infrastructure, rather than household negligence, is the primary driver of the current crisis. • The Core Finding: Open and exposed roadside drainage systems account for 70% of the overall dengue transmission risk. In contrast, households, schools, and workplaces account for only about 30%. • The Policy Mismatch: While national authorities heavily focus inspection and enforcement efforts on domestic and institutional environments, the study urges an immediate shift toward maintaining, covering, and managing public roadside drains. • 2026 Outbreak Data: Sri Lanka is facing a severe outbreak with 63,835 reported cases and 42 deaths (provisional data as of early July 2026). This includes a sharp spike of 21,543 cases in June alone. • Regional Epicentre: The Western Province remains the hardest hit, with Colombo (12,968 cases) and Gampaha (12,929 cases) together accounting for over 40% of the national total. • Critical Health Warning: Medical experts highlight that the most dangerous phase of dengue is the "Danger Window" (Days 4–6) when the fever begins to drop. This is when severe complications like bleeding and shock are most likely to occur, requiring vigilant clinical monitoring.

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🇱🇰 PM Dr. Harini Amarasuriya Departs for Qatar Following Death of Former Qatari Leader

Sri Lankan Prime Minister Dr. Harini Amarasuriya has departed for the State of Qatar to attend the funeral ceremony of the country's former leader (Father Amir), Sheikh Hamad bin Khalifa Al Thani, who passed away on July 12, 2026, at the age of 74. Key Objectives of the Visit • Official Condolences: PM Amarasuriya will formally convey the deepest condolences on behalf of the Government and the people of Sri Lanka to the leadership of Qatar. • High-Level Engagements: The Prime Minister will participate in high-level official meetings with Qatari leadership to reaffirm Sri Lanka’s longstanding diplomatic friendship, bilateral cooperation, and mutual ties. National Context • Diplomatic & Economic Ties: High-level diplomatic visits to key Middle Eastern nations like Qatar are critical for bolstering Sri Lanka's foreign relations, securing developmental cooperation, and supporting the interests of the significant Sri Lankan migrant workforce employed in the region.

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📖 Book Release: Monk Pens True Autobiography as a Historical Novel

• Overview: A new English book titled Forbidden Love of a Buddhist Monk, authored by Sri Lankan monk Venerable Panadura Ananda Thero, explores the spiritual side of life, addressing the deep emotional struggles and past-life memories of a monk. • Key Themes: Contrary to its provocative title, the book involves no violation of monastic vows; instead, it details an innocent spiritual devotion to an elder sister from a previous birth in an ancient Indian kingdom. The narrative bridges religious experience with modern scientific research, citing local studies by Tissa Jayawardena and global research by Prof. Ian Stevenson on children remembering past lives. It integrates neuroscience, explaining how Gamma-Aminobutyric Acid (GABA) filters data streams, and how Samatha (tranquility) meditation can bypass these biological filters to retrieve past-life data. • Significance: Written by a former Deputy Governor of the Central Bank of Sri Lanka, the review highlights the book as a work of "spiritual transparency." By using a narrative format, the author translates abstract doctrines of karma, rebirth, and Anatta (Non-Self) into an accessible human reality, showing the ultimate triumph of wisdom and Vipassana (insight) meditation over deep-seated emotional attachments.

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📝 Call to Reform Language Assessments for Sri Lankan English-Medium Students

An educational commentary addressing Prime Minister and Education Minister Dr. Harini Amarasuriya highlights critical failure rates among English-medium students due to compulsory first-language papers in the G.C.E. Ordinary Level (O/L) examinations. • Core Issue: A significant number of English-medium students perform exceptionally well in academic subjects like Science and Commerce but fail the overall O/L examination solely because they do not secure a pass in their first language (Sinhala or Tamil), or occasionally Mathematics. • Proposed Strategy: The author proposes leveraging the Year 5 Scholarship Examination as an early diagnostic tool rather than a competitive test for English-medium students. • Key Benefits & Framework: Provides an early academic assessment to identify language deficiencies well ahead of the O/L exams. Allows parents, teachers, and education authorities sufficient time to introduce targeted remedial support and language classes. Proposes alternatives to minimize student stress, such as sitting the exam purely for assessment purposes or answering only the school-level language component. • National Impact: Strengthening foundational language competency early aims to mitigate avoidable O/L failures, directly protecting the future workforce and human capital development in secondary education.

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⚠️ Market Update: Source Content Unavailable

• Data Status: Due to a technical read timeout from the source (FT.lk), the full business news text could not be extracted at this time. • Summary: No market figures, growth rates, or sector updates (such as tea, apparel & textiles, or ICT/BPM) are available for this specific report based on the provisional connection error.

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Middle East Conflict Forces Downgrade of 2026 Sri Lankan Tourism Targets 📉

Based on official updates from the Ministry of Tourism, Sri Lanka has factually revised down its national performance projections for the year 2026 due to regional airspace closures and severe international flight disruptions. • Revised National Targets (2026) Tourist Arrivals: Cut to 2.5 Mn visitors (down from the initial optimistic target of 3.0 Mn). Tourism Revenue: Lowered to US$ 3.50 Bn (down from the original projection of US$ 4.00 Bn). • Market Context & Growth Trajectory Despite the external setback, the sector recorded a strong year-on-year (YoY) performance early in the year, with arrivals surging 17% YoY in January and 16% YoY in February. The disruption was driven by the temporary cancellation of approximately 2,000 transit flights across major long-haul routes. • Strategic Sector Outlook & Recovery A strong recovery is expected in 2H 2026, driven by a winter charter influx from the CIS region, Switzerland, and Poland. Sri Lanka Tourism aims to secure stable revenue by targeting 200,000 monthly visitors, including a high-spending focus on 75,000 to 100,000 Indian travelers. Global connectivity will be bolstered as major carriers (including Turkish Airlines, Emirates, and Qatar Airways) expand flight frequencies, alongside upcoming operations by new entrants like Vietnam Airlines, Jetstar, and British Airways. _Note: Summarized from official statements by Tourism Deputy Minister Prof. Ruwan Ranasinghe._

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Sri Lanka Tourism Targets Revised Downward Amid Middle East Crisis 📉

Based on provisional data from the Tourism Ministry, external geopolitical disruptions have forced a revision of national economic targets: • Macro Targets: Sri Lanka has downgraded its 2026 tourist arrival projection to 2.5 million (down from 3.0 million) and lowered its tourism earnings target to US$ 3.50 Bn (down from US$ 4.00 Bn). • Growth & Disruption: Despite a strong start—with YoY growth of 17% in January and 16% in February—escalating conflicts in the Middle East led to regional airspace closures. Nearly 2,000 global flights were cancelled, significantly hurting long-haul transit routes to the island. • Recovery & Connectivity: A strong recovery is projected for 2H 2026, driven by expanded airline connectivity. New operators, including Vietnam Airlines, Jetstar, and British Airways, are launching services to Colombo, while major carriers like Emirates and Qatar Airways have boosted flight frequencies. • Top Markets: The Sri Lanka Tourism Promotion Bureau intends to drive peak winter revenue by targeting 75,000 to 100,000 high-spending travelers from India monthly, alongside upcoming winter charter operations from the CIS region and Poland.

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

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

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

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