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### 📈 Ageing & Migration: The Quiet Crisis of Elder Care

A reflective analysis on the shifting dynamics of family structures as global migration and modern work patterns reshape the final years of the elderly in South Asia and its diaspora. • The Migration Gap Children increasingly migrate for employment and security, leaving elderly parents to age in developing nations. This creates a "geography of ageing" where adult children enjoy advanced healthcare in developed societies while parents navigate systems with limited infrastructure for the very old. • Communication Barriers Physical distance transforms presence into abstract phone calls. Technical challenges such as hearing loss, cognitive decline, and time-zone differences often lead to "disengagement" by children, who may shorten or skip contact due to the asymmetrical nature of the relationship. • The Moral and Social Test The report highlights a troubling trend where financially secure, educated children distance themselves from parents no longer seen as "productive." It emphasizes that remaining emotionally present is a measure of humanity rather than just a failure of circumstance. • Strategic Engagement Effective connection in extreme old age (e.g., 97 years) requires adapting expectations: Moving away from topics like politics or current affairs. Focusing on "grounding questions" about immediate comfort and physical wellbeing. Using shared family memories to anchor the parent in the present and preserve their dignity.

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### 📈 Ageing & Migration: The Quiet Crisis of Elder Care

A reflective analysis on the shifting dynamics of family structures as global migration and modern work patterns reshape the final years of the elderly in South Asia and its diaspora. • The Migration Gap Children increasingly migrate for employment and security, leaving elderly parents to age in developing nations. This creates a "geography of ageing" where adult children enjoy advanced healthcare in developed societies while parents navigate systems with limited infrastructure for the very old. • Communication Barriers Physical distance transforms presence into abstract phone calls. Technical challenges such as hearing loss, cognitive decline, and time-zone differences often lead to "disengagement" by children, who may shorten or skip contact due to the asymmetrical nature of the relationship. • The Moral and Social Test The report highlights a troubling trend where financially secure, educated children distance themselves from parents no longer seen as "productive." It emphasizes that remaining emotionally present is a measure of humanity rather than just a failure of circumstance. • Strategic Engagement Effective connection in extreme old age (e.g., 97 years) requires adapting expectations: Moving away from topics like politics or current affairs. Focusing on "grounding questions" about immediate comfort and physical wellbeing. Using shared family memories to anchor the parent in the present and preserve their dignity.

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🏥 Former SIS Chief Suresh Sallay Hospitalized Under Detention

• Current Status: Major General (Retired) Suresh Sallay, former chief of the State Intelligence Service (SIS), has been admitted to the Colombo National Hospital following a sudden illness. • Legal Context: Sallay is currently being held under a 90-day detention order under the Prevention of Terrorism Act (PTA). The detention is related to investigations into alleged links to the 2019 Easter Sunday attacks. • Timeline of Events: • Reported ill on Tuesday (24). • Examined by a Magistrate and subsequently referred for medical admission. • Remains under medical care while in the custody of the Criminal Investigation Department (CID). • Summary Note: Investigations into the national security implications of the 2019 attacks continue alongside his medical treatment. Based on latest reports as of March 26, 2026.

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Navy Seizes Major Narcotics Haul off Beruwala Coast ⚓

Based on provisional reports, the Sri Lanka Navy has intercepted a significant shipment of illegal substances during targeted operations: • Seizure Details: Over 250 kilograms of cocaine were recovered from a multi-day fishing trawler. • Operational Location: The vessel was intercepted off the coast of Beruwala and subsequently escorted to Dikkowita Harbour on the evening of March 16th. • Economic Context: Large-scale maritime security operations are critical for maintaining Sri Lanka's status as a secure regional logistics and shipping hub, mitigating the risks of the "shadow economy" impacting legitimate maritime trade.

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### Ranil Wickremesinghe Undergoes Successful Surgery in Singapore 🩺

Former President Ranil Wickremesinghe has successfully undergone a surgical procedure in Singapore, according to a statement made in Parliament yesterday. • Current Status: Opposition MP Ravi Karunanayake confirmed the surgery was completed successfully and extended wishes for a speedy recovery. • Context: The announcement was made during a parliamentary debate regarding regulations under the Colombo Port City Commission Act. • Location: The procedure was conducted in Singapore; however, specific details regarding the nature of the surgery remain undisclosed based on provisional reports.

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🚨 CID Reopens Probe into Makandure Madush Custodial Killing

The Criminal Investigation Department (CID) has officially commenced a fresh inquiry into the 2020 shooting death of notorious underworld figure Samarasinghe Arachchige Madush Lakshman, alias Makandure Madush, while in police custody. • Investigation Scope: The CID will record statements from Colombo Crime Division (CCD) officers who escorted Madush to Maligawatta on October 20, 2020, where he was killed by unidentified gunmen during a reported narcotics recovery operation. • Legal Directives: Following a request from the victim's brother to the Public Security Ministry, the Colombo Magistrate’s Court has ordered the collection of: Statements from the relevant medical officers. Video footage of the incident from media organizations. • Context: The probe seeks to clarify the circumstances of the shooting, which occurred while Madush was under high-security escort, raising long-standing questions regarding custodial safety and law enforcement protocols.

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📈 Online Scams: The Devastating Shift from Financial to Psychological Exploitation

Authorities in Cambodia have uncovered a sophisticated scam hub in O’Smach, highlighting a shift toward deep emotional manipulation rather than simple financial fraud. • Systematic Deception: Operations involved staged international police stations, forged documents, and counterfeit uniforms to create a climate of fear and authority. • Romance Scams: Scammers use "grooming" periods lasting weeks or months to build trust, specifically targeting individuals seeking companionship or emotional connection. • Psychological Impact: Victims suffer from severe mental health issues, including PTSD, chronic anxiety, depression, and a long-term loss of trust in legitimate institutions. • Human Cost: Beyond the victims, trafficked workers are forced into "scripted" deceptions, leading to significant personal trauma and chronic stress. • National Context: For Sri Lanka’s growing ICT/BPM and digital services sector, such regional developments emphasize the urgent need for enhanced digital literacy and mental health support frameworks for cyber-crime survivors.

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UNICEF Reports Staggering Child Casualties in Lebanon 🇱🇧

Recent data from the UN Children’s Fund (UNICEF) highlights a severe humanitarian crisis in Lebanon as conflict intensifies. While this report focuses on the Middle East, such geopolitical instability historically impacts global supply chains and energy prices relevant to the Sri Lankan economy. • Recent Toll: At least 83 children killed and 254 injured since March 2, 2026. • Daily Average: Over 10 children killed and approximately 36 injured every day over the past week. • Cumulative Impact: In the last 28 months, 329 children have been killed and 1,632 injured in Lebanon. • Displacement: Nearly 700,000 people have been forced from their homes, including approximately 200,000 children. • Infrastructure: UNICEF emphasizes the urgent need to protect civilian infrastructure, including schools and shelters, as per international humanitarian law. Based on provisional UNICEF data as of March 11, 2026. ⚠️

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

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

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

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

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

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

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## Thousands Gather for Annual Katchatheevu Feast 2026 ⛪

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

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Regulatory & Policy News

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### 📈 Drug Quality & Regulatory Compliance in Sri Lanka

The National Medicines Regulatory Authority (NMRA) faces a significant "implementation gap" between its legal mandate and the practical enforcement of quality standards for the private sector, which accounts for 60% of the total spend on drugs and medical supplies. • Regulatory Framework & Gaps Private Sector imports exceed 4,000 items, compared to under 1,000 in the State Pharmaceuticals Corporation (SPC) system. While the NMRA Act No. 5 of 2015 mandates ensuring "efficacious, safe, and good quality medicines," audits reveal a massive registration backlog and a "reactive" rather than "proactive" testing culture. The National Medicines Quality Assurance Laboratory (NMQAL) lacks the resources to test the volume of private imports, leading to reliance on "provisional" registrations. • Audit & Oversight Findings Emergency Waivers: During the 2022–2023 crisis, Section 109 was overused to bypass essential quality checks. Data Integrity: A 2023–2025 COPE investigation highlighted a "data deletion incident" that lost critical digital records of importers and quality certificates. Staffing: The NMRA operates with a technical staff smaller than a single large private hospital, hindering market surveillance. • Strategic Reforms (2025–2026) Digital Integration: A World Bank-funded "Digital Gatekeeper" project aims to link NMRA with Customs to automate batch certificate verification. Regulatory Shifts: New mandatory labeling (stickers) and digital data collection for all imports since January 2023 are being implemented to curb falsified products. Proposed "Positive List": International bodies suggest a "Private Sector Essential Medicines List" to prioritize surveillance on therapeutically necessary brands, though this faces potential industry pushback. _Note: Summary based on provisional audit reports and current situational analyses._ ---

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Court Rules in Favor of CBSL on EPF Data Disclosure ⚖️

The Court of Appeal has set aside a Right to Information (RTI) Commission order that previously directed the Central Bank of Sri Lanka (CBSL) to disclose detailed transaction-level data regarding the Employees’ Provident Fund (EPF). • Legal Ruling: The Court held that specific details of government securities transactions—including purchase dates, yields, prices, and counterparties—are exempt under Section 5(1)(d) of the RTI Act. • Economic Rationale: Disclosure of investment strategies was deemed commercially sensitive. The Court noted that publicizing this data could allow market participants to outmaneuver EPF bids, placing the Fund at a competitive disadvantage and potentially reducing returns for millions of member contributors. • Governance & Oversight: While the court acknowledged the importance of transparency, it ruled that the EPF is already subject to sufficient oversight via the Auditor General, annual reports, and parliamentary review. • Precedent: The judgment affirms that the Central Bank’s fiduciary duty to protect fund assets outweighs the public interest claim in this specific instance, as the petitioner failed to prove that disclosure benefits would surpass the potential harm to the Fund's market position.

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📈 Sri Lanka’s Courts Clear Decades-Old Backlog, Generate Rs. 952.9 Mn

Sri Lanka has successfully cleared long-standing accumulations of case productions across Magistrates’ and High Courts, addressing critical storage and security inefficiencies. This nationwide initiative has revitalized judicial spaces while recovering significant economic value. • Overall Revenue: The disposal of items stagnant for over two decades generated Rs. 952.9 million in 2025 alone. Total judicial revenue—including fines, notary fees, and bail bond confiscations—reached Rs. 6.57 billion for the year. • Resource Recovery: The project targeted a vast range of seized items, including vehicles (lorries, tractors, motorcycles), timber, sand, and industrial tools. By clearing these, the state mitigated the decay of assets originally imported at a high foreign exchange cost. • Operational Impact: Led by the Judicial Service Commission in collaboration with the "Clean Sri Lanka" program, the effort has cleared court premises of hazardous materials like explosives and prohibited substances, improving security and logistical flow. • National Context: Beyond the fiscal gain, the initiative supports economic stability by returning idle resources to the economy and enhancing public confidence in the efficiency of the justice system.

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CSE & SEC Forum: Scaling SOEs via Capital Market Integration 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) convened over 45 State-Owned Enterprises (SOEs) to discuss transitioning toward capital market funding to reduce Treasury reliance and enhance governance. • Strategic Objectives The initiative aims to provide SOEs with alternative funding pathways for mid-to-long-term growth while improving transparency and operational efficiency. Key focus areas include reducing the burden on public finances and attracting institutional investors. • Market Performance & Capacity • Between 2020 and 2025, listed entities raised Rs. 560.58 Bn through debt, equity IPOs, and rights issues. • The investor base has seen significant growth, with CDS accounts recently surpassing the 1 million threshold. • 2025 saw 25 new listings, including 6 companies, utilizing diverse instruments like Blue, Green, and Social Bonds. • Key Mechanisms for SOEs • Catalyst Board: A flexible entry point with relaxed regulations specifically designed for SOE integration. • Equity & Debt: Options for partial listing where the State retains control while allowing public and employee participation via ESOP schemes. • Governance: Emphasis on regular financial reporting to build investor trust and bridge existing governance gaps. • Economic Impact Integration is viewed as a catalyst for economic transformation, deepening market liquidity, and streamlining the quality of essential services provided by the state sector.

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### 📈 Sri Lanka Advances in AML/CFT Review; On-Site Evaluation Set for October

Sri Lanka has crossed three critical milestones in its third Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Mutual Evaluation process, according to the Financial Intelligence Unit (FIU) and the Central Bank of Sri Lanka (CBSL). • Key Milestones & Timeline • Feb 20: Submitted technical and contextual information to the Asia/Pacific Group (APG). • March 20: Met deadline to submit the Technical Compliance Report covering 40 FATF recommendations. • June 19: Deadline for the "Effectiveness Report" detailing practical framework performance. • Oct 26 – Nov 6: Scheduled on-site review by APG assessors. • July 2027: Final Mutual Evaluation Report expected to be adopted. • Legislative & Sector Progress • Amendments to three core laws (Financial Transactions Reporting, Prevention of Money Laundering, and Suppression of Terrorist Financing Acts) are now gazetted and await Parliamentary approval. • The evaluation impacts the banking & finance sector and private sector reporting entities, which will undergo direct scrutiny during the on-site visit. • Economic Impact Successful compliance is vital for maintaining correspondent banking relationships and investor confidence. The process is a key safeguard against potential "grey-listing" risks as the country pursues economic stabilization. Based on provisional data and official CBSL statements.

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### 📈 SC Ruling: Bunker Fuel Supply Classified as Domestic Sale, Not Export

The Supreme Court of Sri Lanka has delivered a landmark judgment defining the legal boundaries of "exports" in tax statutes, dismissing eight appeals from bunkering companies. • Core Ruling: The supply of bunker fuel and lubricants to foreign vessels in Sri Lankan waters is a domestic sale. It does not qualify as an "export," affirming tax assessments for Income Tax and VAT. • The "Two-Termini Doctrine": Justice A.H.M.D. Nawaz ruled that an export requires goods to be dispatched from one country to another to be received as imports. Since bunker fuel is consumed by the ship and has no foreign destination as cargo, it fails this legal test. • Tax Implications: VAT Status: The court clarified that the VAT Act explicitly places bunkering in the exempt category rather than the zero-rated category (reserved for exports). Income Tax: Suppliers are denied concessionary rates previously sought under "re-export" claims. • Key Determinants: Consumption: Fuel is burned for engine combustion, not delivered to a foreign consignee. Documentation: Lack of a Bill of Lading or foreign customs clearance confirms it is not cargo. Responsibility: The transaction ends at the port; the vessel’s subsequent movement is independent of the sale. • Industry Impact: The ruling sets a defining precedent for the petroleum and maritime sectors. While appellants argued this may hurt Sri Lanka’s hub aspirations, the Court maintained that any shift to "zero-rated" status must come from Parliamentary legislation, not judicial interpretation. _Note: Based on Supreme Court judgment SC Appeals 39–46/2023._

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Dimuth Atapattu Appointed as First Director General of Data Protection Authority 📈

The Data Protection Authority (DPA) has officially appointed Dimuth Bhashitha Atapattu, an officer of the Sri Lanka Administrative Service (SLAS), as its Director General effective 5 March 2026. This move marks a critical step in operationalizing the Personal Data Protection Act No. 9 of 2022. • Strategic Leadership: Atapattu transitions from his role as Director of Commercialisation and Partnerships at the Ministry of Digital Economy. He also holds board positions at Sri Lanka CERT and the LK Domain Registry. • Professional Background: His experience spans both public and private sectors, including roles at Virtusa (Colombo/UK) and the Ministry of Defence. He holds postgraduate degrees from the University of Melbourne and the University of Sri Jayewardenepura. • Economic Impact: The DPA is tasked with safeguarding privacy rights and fostering a secure digital economy. This is a core component of the Government’s Digital Economy Blueprint, aimed at enhancing digital trust and responsible data governance. • Implementation Status: Based on provisional plans, the Personal Data Protection Act (amended in 2025) will be brought into operation in phases as the DPA becomes fully functional under the new leadership.

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Sri Lanka’s WHT Regime: Key Pivots in IRA Bill 2026 📈

The proposed Inland Revenue (Amendment) Bill of 2026 marks a significant shift toward digitizing and formalizing Sri Lanka's tax landscape, specifically targeting the gig economy and investment returns. • Employment & Personal Tax Individual taxpayers with employment income subject to APIT are exempt from filing returns if their annual interest income is below Rs. 5,000 (eff. April 2025). However, providing a TIN is now mandatory for APIT statements; missing records will result in rejected tax credits. • Investment & AIT Changes Residents can now avoid mandatory withholding on interest by providing a self-declaration to banks confirming they have no taxable income. Note: Fraudulent declarations now carry a penalty of up to Rs. 200,000. • Expanded Service Fees (5% WHT) The "withholding universe" has expanded to include a broad range of independent service providers earning over Rs. 100,000/month. New categories include: • Digital & Creative: Social media specialists, brand ambassadors, IT specialists, videographers, and artists. • Professional Services: Auditors, valuers, advisors, translators, and debt collectors. • Personal Services: Personal trainers, coaches, beauticians, and therapists. • Administrative Compliance Withholding agents must now issue tax certificates free of charge. This structured pathway aims to integrate the ICT/BPM and gig sectors into the formal economy, enhancing the IRD's cross-verification capabilities.

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Planters’ Association Warns of 'Price Cliff' Over Proposed 13.6% Tariff Hike 📈

The Planters’ Association of Ceylon (PA) has raised urgent concerns over the CEB’s proposal to increase electricity tariffs by 13.6% in Q2 2026, warning it threatens the global competitiveness of Sri Lanka's primary exports. • Overall Impact: The industry faces a "price cliff" in April after a previous tariff freeze. High energy costs are inflating the cost of production for tea and rubber processing, which require 24-hour factory operations. • Sector Grievances: Unlike other export sectors in processing zones, Regional Plantation Companies (RPCs) are charged standard industrial rates. The PA is lobbying for a dedicated "Agricultural Export" tier or concessional "green tariffs" to reflect their role in earning foreign exchange. • Sustainability & Innovation: To combat rising costs, RPCs are aggressively diversifying into renewable energy: • Bogawantalawa: Committed over Rs. 300 Mn to solar and hydro projects. • Talawakelle Tea Estates: Invested Rs. 59.3 Mn in rooftop solar (2024/25). • Efficiency: Implementation of ISO 50001 standards, IE3 motors, and VSDs has already reduced emissions by thousands of tons of CO2 equivalent. • Strategic Goal: The PA emphasizes that fair pricing is essential to allow reinvestment into renewable energy and ESG initiatives, ensuring the plantation sector aligns with national net-zero targets while remaining viable in international markets.

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Legal Challenge Filed Against Inland Revenue (Amendment) Bill 2026 ⚖️

A significant constitutional petition has been filed in the Supreme Court by tax expert Prasad Dasanayaka, challenging key clauses of the proposed Inland Revenue (Amendment) Bill 2026 on grounds of judicial independence and taxpayer rights. • Judicial Oversight Concerns: The petition targets Clause 31, which allows tax default certificates issued by the Commissioner General to be treated as "conclusive evidence." This reportedly prevents Magistrates from questioning tax accuracy, which the petitioner argues is an unconstitutional transfer of judicial power to an administrative body. • Corporate Tax Impact: Clause 4 seeks to redefine "reserves" to include negative retained earnings (accumulated losses) when calculating interest deductions. This change would disproportionately restrict the ability of loss-making companies in sectors like manufacturing or SMEs to deduct interest expenses compared to profitable firms. • Fiscal Transparency: The filing alleges "stealth taxation," noting that the 2026 Budget speech did not disclose these specific redefinitions. It argues this bypasses Parliament’s exclusive control over public finance under Article 148. • Legal Requirement: The petitioner urges the Court to mandate a two-thirds majority in Parliament and a public referendum unless the impugned clauses are amended to align with the Constitution. _Note: Based on provisional court filings dated March 24, 2026._

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⚡ LKR Power Crisis: Tariff Decision Pending for April 1st

The Sri Lankan government is currently navigating a critical period in the energy sector, balancing potential price hikes against rising operational risks. • Overall Status: Minister Nalinda Jayatissa has officially confirmed that a final decision regarding a proposed electricity tariff increase will be announced on April 1, 2026. • Key Risks: The decision-making process is heavily influenced by growing concerns over a fuel shortage, which threatens the stability of the national grid and thermal power generation capacity. • Sector Impact: The energy and power sector remains under pressure as the government weighs the financial viability of the Ceylon Electricity Board (CEB) against the cost-of-living impact on consumers and the industrial manufacturing sector. • Next Steps: Authorities are currently analyzing expenditure and fuel supply chains to determine if a tariff adjustment is necessary to prevent a wider power crisis. (Based on provisional government statements).

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SEC and CSE Move to Curb Prolonged Watchlist Stays 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) held a joint session for auditors to streamline enforcement and improve transparency for companies on the Watchlist. • Core Objectives: The regulators aim to reduce the duration companies spend on the Watchlist by fostering better coordination between auditors, management, and the SEC/CSE. • Regulatory Compliance: Under Section 90 of the SEC Act, auditors are mandated to report material breaches, fraud, or financial irregularities. They are granted legal immunity for reports made in "good faith" to ensure independent oversight. • Watchlist Triggers: Key reasons for Watchlist inclusion include: • Non-submission of financial statements. • Modified Audit Opinions. • Going Concern issues (financial instability). • Key Solutions: • Companies must engage auditors early to avoid last-minute delays in financial reporting. • Resolution of Modified Opinions and independent verification can lead to full reinstatement of securities. • Early identification of Going Concern signals is critical for market stability and investor confidence. The initiative underscores a push for higher governance standards in Sri Lanka's capital markets, ensuring that enforcement actions drive corporate recovery rather than long-term delisting risks.

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Product & Service Launches / Business Expansions

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LankaPay Partners with BASL to Drive Legal Digitalization 📈

Sri Lanka’s National Payment Network, LankaPay, has officially signed on as a Corporate Partner for the Bar Association of Sri Lanka (BASL) to accelerate the digital transformation of the country’s legal ecosystem. • Strategic Collaboration: The partnership focuses on transitioning the legal profession into a digitalized system, specifically targeting the adoption of secure digital signatures among legal practitioners. • Digital Infrastructure: LankaPay will leverage its LankaSign service—the only commercially authorized Certification Service Provider (CSP) under the National Certification Authority—to provide legally binding digital certification. • Efficiency & Security: The initiative aims to enable the signing of legal documents remotely, ensuring business continuity during crises and improving the overall speed of legal documentation. • National Impact: The move is positioned as a critical step in the ICT/BPM and professional services sectors, moving away from optional digitalization toward an essential, future-ready legal framework. Based on official partnership announcements as of March 28, 2026.

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ComBank First to Enable 3D Secure for LankaPay/JCB Cards 📈

• Digital Payments: Commercial Bank of Ceylon has become the first in Sri Lanka to implement 3D Secure (3DS) authentication for the LankaPay/JCB National Card Scheme. This integration utilizes the "J/Secure" protocol to provide multi-factor authentication (OTP) for e-commerce transactions. • Market Impact: The move elevates the national card scheme to global standards, allowing cardholders to shop securely at millions of international online merchants. This is particularly significant for cross-border transactions, as the card offers highly competitive charges compared to international brands. • Strategic Value: • Financial Infrastructure: Strengthens Sri Lanka’s national payment ecosystem by combining cost efficiency with Tier-1 security. • Global Connectivity: Facilitates seamless integration into the global digital economy while providing access to exclusive JCB promotions worldwide. • Security: Partnered with CardinalCommerce to drastically reduce unauthorized use and fraud risk for local consumers. • Institutional Context: Commercial Bank, the first Sri Lankan bank to exceed a US$ 1 Bn market cap, continues its role as the largest private sector lender and a leader in ICT/BPM integration within the banking sector.

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📈 JAT Holdings Scales Australian Presence with Perth Manufacturing Facility

• Strategic Expansion: JAT Holdings PLC has officially entered the Australian cabinetry manufacturing segment by securing a fully operational facility in Perth. This follows the success of its premium SEAFORM Perth joint venture. • Market Positioning: The Group introduced Form Cabinetry to target the accessible residential housing segment (kitchens, wardrobes, and panels). This complements the existing SEAFORM brand, which continues to serve the high-end premium market. • Financial Performance: Since inception, the new manufacturing operation has generated over LKR 100 Mn (AUD 503,000) in revenue. This is bolstered by the SEAFORM Perth showroom, which has recorded over LKR 350 Mn (AUD 1.6 Mn) in revenue. • Operational Edge: By establishing local production, JAT aims to bypass high import lead times and rising local construction costs (forecast to rise ~5.3% in Perth). The facility includes integrated software and a skilled workforce, enabling immediate revenue generation. • Economic Impact: This move diversifies JAT’s revenue base into developed markets, strengthening the ICT/BPM integrated manufacturing model and enhancing the global footprint of a Sri Lankan multinational within the furnishing and construction sectors.

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📈 Sri Lanka’s First AI Visibility Index Launched

BrandRadar by Roar Global has hosted the inaugural AI Visibility Summit, introducing a national benchmark to measure brand performance across generative platforms like ChatGPT, Gemini, and Perplexity. • Key Focus: The Sri Lanka AI Visibility Index evaluates how brands appear in AI-driven discovery and recommendations, shifting focus from traditional search metrics to "citation authority" and "category-level dominance." • Sector Coverage: Initial data spans critical industries including banking, finance and insurance (BFSI), hospitality, automotive, real estate, retail, and e-commerce. • Strategic Impact: Addressing the shift from conventional search to AI-led discovery. Enhancing the ICT/BPM and digital marketing landscape by providing structured tracking for competitive positioning. Enabling Sri Lankan brands to optimize for high-intent consumer queries where AI-generated recommendations influence buying journeys. • Outlook: Positioned as an annual benchmark, the Index aims to help corporate decision-makers and senior marketers adapt to an AI-first world where visibility is increasingly defined by recommendation algorithms rather than simple search results.

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SriLankan Airlines Boosts Revenue via AI-Driven Pricing Integration 📈

SriLankan Airlines has reported a significant revenue uplift following the implementation of a next-generation AI and Machine Learning (ML) powered Revenue Management System. The platform, developed in partnership with PROS and Amadeus, leverages predictive analytics for dynamic pricing and inventory optimization. • Financial Performance: The airline recorded a 13% growth in revenue during the first three quarters of the 2025-2026 financial year. The new system is identified as a primary driver, with industry benchmarks for such AI models typically yielding a 3%-5% increase in passenger revenue. • Technological Impact: The integration of AI-driven Revenue Management Advantage (RMA) and Revenue Availability and Active Valuation (RAAV) allows for real-time seat availability and improved alignment of capacity with market demand. • Strategic Value: This digital transformation enhances the aviation sector’s agility, specifically targeting high-value connecting passengers and improving global competitiveness through smarter premium seat allocation. • Recognition: The initiative secured two major accolades in 2025: the Growth Catalyst Award (Las Vegas) and the Silver Award in AI and Data Science at the National Project Management Excellence Awards (Colombo).

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📈 Review: "The J.R. I Disliked" by Imthiaz Bakeer Markar

A new publication from the J.R. Jayewardene Centre offers a reflective reassessment of Sri Lanka’s first Executive President, moving beyond traditional political caricatures to highlight his role as a transformative pragmatist. • Historical Legacy & Reforms The text credits Jayewardene with structural shifts that altered the national trajectory, including opening the economy, establishing free trade zones, and modernizing infrastructure. It highlights his efforts in free education (textbooks/Mahapola) and large-scale irrigation & electrification. • Economic Philosophy Contrary to "right-wing" labels, the review notes Jayewardene’s early warnings against imperialist and capitalist systems. His approach is described as a "pragmatic middle path" influenced by Buddhist ethics, prioritizing national autonomy in trade and aid. • Diplomacy & Sovereignty Key highlights include his 1951 San Francisco Peace Conference speech and his refusal to compromise independence for U.S. aid during the rubber-rice trade negotiations—a model of "sovereign realism" relevant to today's geopolitical pressures. • Critical Balance The author acknowledges controversial aspects, such as authoritarian tendencies, media tensions, and the referendum extension, providing a balanced view of his statecraft versus his flaws. • Event Notice The book launch for "Maa Akamathi J.R." (with English and Tamil translations) is scheduled for Monday, 30 March at 4:15 p.m. at the J.R. Jayewardene Centre, Colombo.

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### 🇱🇰 Three Families Collaboration Launches Sri Lankan Flavors Globally

Three iconic family-led beverage pioneers—Rockland Distilleries, Dilmah Tea, and the Lyan Group—have officially launched ‘Three Families,’ a strategic collaboration showcasing Sri Lankan ingredients to the global drinks industry. • Strategic Partnership: Combines generations of expertise in tea, spirits, and mixology (Ryan Chetiyawardana, Amal de Silva Wijeyeratne, and Dilhan C. Fernando) to address the global demand for authentic Asian flavors. • Product Innovation: The venture introduces a range of tropical beverage seasonings designed for international bartenders, utilizing indigenous ingredients such as rambutan, lemongrass, calamansi, tamarind, and orange pekoe tea. • Global Recognition: Already gaining market traction, the brand was ranked in the top two of the “Top 50 Innovative Spirits Launches of 2025” by _The Spirits Business_ magazine. • Economic Impact: This initiative promotes value-added exports by moving beyond raw commodity trade into high-end, branded lifestyle products. It leverages Sri Lanka’s biodiversity and agricultural heritage to capture the premium global beverage segment. 📈 • Market Context: Designed to solve consistency and seasonality issues for tropical ingredients, the collaboration positions Sri Lankan flavors in major international markets, following a successful initial debut in the UK.

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ComBank Avurudu Discounts: Up to 70% Off at 4,000+ Outlets 📈

Commercial Bank of Ceylon has launched its major Sinhala and Tamil New Year promotional campaign, offering significant savings for credit and debit cardholders through 30 April 2026. • Overall Scale: Discounts up to 70% available across a network of 579 merchant partners and over 4,000 retail outlets island-wide. • Sector Breakdowns: Clothing, Fashion & Accessories: 221 partners (largest category). Retail & Lifestyle: 69 lifestyle merchants, 20 shoe/leatherwear partners, 17 jewellery retailers, and 80 online shopping platforms. Hospitality & Dining: 90 hotel partners and 38 dining establishments. Services: 17 healthcare partners, 11 salon/spa providers, and 4 major supermarket chains. • Strategic Impact: As the bank's largest seasonal campaign, it targets high-demand retail and consumer services sectors, driving domestic consumption during the peak festive period. • Accessibility: Offers are valid for both in-store and digital transactions, reflecting the bank's push toward ICT/BPM integration in consumer finance through e-commerce.

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Healthguard Distribution Invests Rs. 300M to Bolster Pharma Supply Chain 📈

Healthguard Distribution (Sunshine Group) has completed a major Rs. 300 million upgrade of its Western Regional Distribution Centre in Colombo to enhance the safety and availability of medicines across Sri Lanka. • Investment & Infrastructure: The Rs. 300 million project revamped an 18,000 sq. ft. warehouse with a total capacity of 2,295 CBM. It serves as a central "port to pharmacy" hub, eliminating the need for third-party providers. • Cold Chain & Compliance: The facility doubled its specialized cold storage capacity from 15 CBM to 30 CBM, maintaining strict temperatures (2°C to 8°C) for vaccines and insulin. Operations are fully aligned with NMRA and ISO 9001:2015 standards. • Technology & Automation: The hub introduced Robotic Process Automation (RPA) for invoicing, alongside ERP systems and automated conveyors to streamline the ICT/Logistics interface for real-time inventory visibility. • Logistics & Reach: • Network: 4,500 customer points across 467 towns. • Fleet: 55 GPS-tracked vehicles with real-time temperature monitoring. • Efficiency: Achieves a 98% order fulfillment rate and 97% next-day delivery. • Sustainability: Established high-temperature incineration protocols (up to 1,000°C) for pharmaceutical waste to prevent environmental contamination, ensuring complete molecular destruction of expired goods.

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Cultural Synergy: India-Sri Lanka "Lotus Roots" Art Exhibition at City of Dreams 🎨

• Event Overview: The Delhi-based NGO ‘Empowerment’ is launching "Lotus Roots," an international art initiative featuring a joint residency and exhibition for 10 Indian and 10 Sri Lankan female-identifying painters. • Venue & Timing: The public exhibition will be hosted at The Shoppes at City of Dreams (South Asia’s largest integrated resort) in Colombo on March 28 and 29, 2026. • Economic & Sector Impact: Tourism & Retail: The event leverages the premium retail space at City of Dreams to drive footfall, following the success of previous high-profile exhibitions like that of photographer Raffaella Fernando. Creative Economy: Aims to strengthen bilateral ties and provide a commercial platform for both emerging and established artists in the arts and culture sector. Regional Collaboration: Highlights growing cross-border partnerships in the services and hospitality industries, specifically targeting cultural exchange between India and Sri Lanka. • Background: This project follows ‘Empowerment’s’ long history of international initiatives, including "Beyond Borders 2025" and "Colours of Harmony," aimed at fostering global connections through the creative industries. 📈 _Data based on official event announcement (March 2026)._

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⚡ BOI Signs Agreement for Sri Lanka's First Export-Oriented Substation Assembly

The Board of Investment (BOI) has facilitated an agreement with Blue Arc Manufacturing to establish the island's first specialized factory for containerized substation assembly, targeting high-demand global infrastructure sectors. • Project Overview: Blue Arc will manufacture and assemble Skid Substations, Containerized Substations, and Containerized Switch Rooms in Sri Lanka. These modular, "plug-and-play" units are designed for rapid deployment in demanding environments. • Key Export Markets: The primary focus is currently the Australian mining, tunneling, and construction sectors. The company plans to expand its export footprint to the United Kingdom, India, and New Zealand. • Economic Impact & Value Addition: • Local Supply Chain: Sourcing major components like switchboards, metal skids, and prefabricated modules from local vendors. • Industrial Diversification: Marks a shift toward high-end electrical infrastructure and engineering exports beyond traditional commodities. • Labor & Skill: Utilizes local labor for mechanical, electrical, and welding work, providing specialized training in international engineering standards (IEC). • Technology & Trends: Units integrate IoT and smart connectivity (PLC/SCADA) for remote monitoring. Future expansion is targeted toward the Solar and Hydro power sectors to meet global green energy demands. _Source: BOI/Blue Arc Manufacturing (Provisional)_

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📈 Sri Lanka Targets US$ 15 Bn Digital Economy by 2030

The Government of Sri Lanka has announced a strategic roadmap to digitize 100% of state transactions and scale the digital economy to US$ 15 Bn by 2030, supported by the Ministry of Digital Economy and public-private partnerships. • Strategic Milestones: The ‘Access Unlocked V2.0’ initiative, launched in collaboration with Mastercard, introduced South Asia’s first Mastercard SoundBox and SoftPOS solutions to reduce barriers for digital payment adoption. • SME Empowerment: Focus is placed on providing low-cost digital payment infrastructure for Small and Medium Enterprises (SMEs) to drive financial inclusion and integrate local entrepreneurs into the global market. • Technological Integration: New services powered by Mastercard Merchant Cloud allow small business owners to accept digital payments via mobile devices, eliminating the need for expensive traditional hardware. • Economic Impact: The transition aims to increase national transparency and accelerate the ICT/BPM and FinTech sectors, which are critical for sustainable economic growth and modernizing the country’s financial ecosystem.

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Corporate News

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SLT-MOBITEL Drives National Digital Transformation with Record Resilience 📈

Sri Lanka’s national ICT provider, SLT-MOBITEL, has announced a strategic shift toward a 24/7 operational model following a decisive turnaround in profitability for FY 2025. • Financial & Strategic Foundation: Building on strong FY 2025 results, the group achieved a return to profitability through disciplined cost management and steady growth in fixed and mobile segments, enabling increased investment in national ICT/BPM infrastructure. • Industry Firsts: Launched a pioneering 24/7 operational model via 14 Outside Plant Maintenance Centres (OPMCs) in key regions including Colombo, Kandy, and Jaffna to ensure uninterrupted connectivity for enterprise and home users. • Infrastructure & Connectivity: • Publicly rolled out 5G technology, positioning Sri Lanka as a regional innovation leader. • Upgraded government and enterprise entities with a state-of-the-art optical fiber network. • Provided unlimited fiber internet to secondary schools to drive digital inclusion in education. • Sector Diversification: • SMEs: Introduced 'SmartChat Mega,' an AI-driven solution for small businesses. • FinTech: Launched 'Ceylon Remit' to streamline inward foreign exchange. • Cloud & Security: Secured global certifications in Cloud Security and Privacy, bolstering the reliability of the national digital backbone. • Recognition: Named Sri Lanka’s Best Mobile Network by Ookla® (H2 2025) and recipient of over 25 awards for ESG and innovation.

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IPL Valuations Hit Record $3.4 Bn as US Investors Acquire Top Franchises 📈

• The Headlines: Two iconic IPL franchises, Royal Challengers Bengaluru (RCB) and Rajasthan Royals, were sold within hours in record-breaking deals totaling US$ 3.41 Bn. • Deal Breakdown: - RCB: Acquired for US$ 1.78 Bn by a consortium including Aditya Birla Group, Blackstone, and Bolt Ventures. This marks a massive leap from its 2008 valuation of US$ 111.6 Mn. - Rajasthan Royals: Sold for US$ 1.63 Bn to a group backed by US businessmen Kal Somani and former Walmart Chairman Rob Walton. • Market Context: - The valuations reflect the IPL's evolution into a global powerhouse, drawing comparisons to the NBA. - Growth is fueled by massive media rights deals (US$ 6.4 Bn for 2023-27) and increasing private equity interest in sports. • Strategic Links: - The acquisitions highlight deepening ties between Indian sports and US capital, following the 2024 T20 World Cup in the US and cricket's inclusion in the 2028 LA Olympics. - Investors like Walmart (via Flipkart/PhonePe) and Blackstone are leveraging the IPL to tap into India's massive consumer base. • Regional Impact: While focused on India, the scale of these deals underscores the rising commercial value of cricket across South Asia, impacting regional sponsorship, broadcasting, and sports tourism ecosystems.

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📈 Mahindra Ideal Finance Debenture Issue Oversubscribed on Day 1

Mahindra Ideal Finance Ltd (MIFL) successfully concluded its debut listed debenture issue, raising Rs. 1 Billion after being oversubscribed on its first day of opening. The capital raise marks a significant milestone for the non-banking financial institution (NBFI) sector. • Issue Details: The offering comprised 10 million Tier 2, listed, rated, unsecured, subordinated, redeemable debentures at a par value of Rs. 100 each, featuring a five-year tenure maturing in 2031. • Dual Structures: Investors were offered two options: - Type A: Fixed rate of 12.00% p.a. (payable annually). - Type B: Floating rate of 364-day T-Bill + 3.50% (payable semi-annually). • Strategic Impact: Proceeds will be deployed to strengthen lending capacity in SME loans, vehicle leasing, gold loans, and business loans, directly supporting credit accessibility for local communities. • Regulatory & Rating: The move strengthens MIFL’s Tier 2 capital base in line with Central Bank of Sri Lanka adequacy requirements. The issue carried an A (lka) rating from Fitch Ratings, while the entity maintains an AA- (lka) rating with a Stable Outlook. • Partners: The issue was managed by NDB Investment Bank Ltd, with Bank of Ceylon acting as Joint Placement Agent.

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📈 Asia Capital settles Rs. 790.75m debt via River House share transfer

• Debt Settlement: Asia Capital PLC has finalized a deal to settle an outstanding liability of Rs. 790.75 million due to CC Trust Ltd. The settlement was executed by acquiring 9,000,001 shares of River House Ltd. and transferring them to the creditor's nominee, W S Trust Ltd. • Leisure Sector Consolidation: The company significantly increased its footprint in the hospitality and tourism sector through two major equity acquisitions: • Asia Leisure Holdings: Acquired additional stakes from Tamao Watanabe (Rs. 8.9m) and Aoba Pte Ltd (Rs. 192.6m). Asia Capital now holds a 99.98% controlling interest. • Wadduwa Resorts: Entered a Sale and Purchase Agreement to acquire a 22.13% stake for Rs. 75 million from Japan Capital Ltd. • Strategic Outlook: Upon the expected completion of the Wadduwa transaction in September 2026, Asia Capital and its subsidiary will achieve 100% ownership of Wadduwa Resorts Ltd, signaling a move toward total vertical integration within its leisure portfolio. • Financial Position: These transactions streamline the balance sheet by neutralizing a significant long-term liability while consolidating high-value tourism assets, essential for the company's long-term stability and employment capacity within the sector.

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📈 Lee Hedges PLC to Acquire 100% Stake in Lanka Realty Developments for Rs. 3.16 Bn

• Transaction Overview: Lee Hedges PLC has announced a two-part acquisition to take full ownership of Lanka Realty Developments Ltd (LRD) for a total consideration exceeding Rs. 3.16 Bn. • Stake Breakdown: Majority Stake: 51% (57.2 Mn shares) to be purchased from Lanka Realty Investments PLC (LRI) for Rs. 1.61 Bn. Remaining Stake: 49% to be acquired from Eighth Wonder for Rs. 1.55 Bn. • Regulatory Status: The deal is classified as a Related-Party Transaction. It has received approval from the Related Party Transactions Review Committee but remains subject to shareholder approval via a Special Resolution. • Strategic Impact: Upon completion, LRD will become a fully owned subsidiary of Lee Hedges PLC, consolidating its position within the real estate and property development sector. _Note: Based on official disclosure dated 24 March 2026; final completion pending shareholder approval._

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📈 People’s Insurance PLC Reports 34% GWP Growth in 2025

People’s Insurance PLC demonstrated strong financial resilience for the year ended 31 December 2025, driven by disciplined underwriting and robust expansion in key segments despite catastrophic claims from Cyclone Ditwah. • Key Financial Indicators • Gross Written Premium (GWP): Rs. 8,367.39 Mn (up 34% YoY from Rs. 6,249.30 Mn). • Total Assets: Rs. 15.67 Bn (up 23% YoY). • Shareholders’ Equity: Rs. 5,970.13 Mn (up 6% YoY). • Profit After Tax (PAT): Rs. 355.25 Mn. • Sector Breakdowns • Motor: Remained the primary growth engine, accounting for 79% of total GWP with a 42% increase. • Fire: Contributed 9% to total GWP, recording a steady 15% growth. • Investment Income: Amounted to Rs. 1,106.60 Mn, a marginal 9% decline due to market volatility. • Strategic Context The company maintained stability through its connection with People’s Bank and People’s Leasing & Finance. The results highlight the growing role of general insurance in protecting assets amid climate-related risks. The firm received multiple accolades in 2025, including "Best General Insurer" by The Global Economics and recognition for sustainability and integrated reporting. _Note: Based on audited financial results for the period ending Dec 31, 2025._

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People’s Bank Sets Record with Sri Lanka’s Largest Rs. 25 Bn Debenture 📈

• Overall Figures People’s Bank has successfully mobilized Rs. 25 Billion, marking the largest debenture issuance in Sri Lanka's history. The capital was raised via Basel III compliant, Tier 2, unlisted, subordinated, and redeemable debentures with 5-year and 8-year tenors. • Strategic Impact The issuance strengthens the bank’s capital base and balance sheet resilience. This record-breaking transaction, executed by the People’s Bank Investment Banking Unit (PBIBU), highlights strong investor confidence in state-owned financial institutions despite the typical market challenges faced by unlisted debt instruments. • Sector Milestones Banking & Finance: People’s Bank became the first state-owned bank to receive a Corporate Finance Advisor Licence from the SEC. Capital Markets: PBIBU has now mobilized over Rs. 225 Billion across 33 debenture listings and one IPO since its inception. Future Outlook: Two additional debt issuances are structured for launch in the first half of 2026 to further develop the local financial services ecosystem. • Recognition Reflecting its leadership in the investment banking sector, the bank was recently awarded "Best Investment Bank Sri Lanka 2026" for the second consecutive year by the Global Banking and Finance Review. _Data based on official bank statement (March 23, 2026)._

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📈 Siyapatha Finance Debenture Issue Over-Subscribed

Siyapatha Finance PLC has successfully closed its debenture issue after receiving applications exceeding the maximum target of Rs. 3.75 Billion. The offer was officially closed on March 20, 2026, due to strong investor demand. • Issue Details: The capital raise consisted of listed, rated, subordinated, unsecured redeemable debentures. • Subscription Tiers: The initial tranche of 20 million debentures was expanded via two oversubscription options (10 million and 7.5 million), reaching the full Rs. 3.75 Bn cap. • Market Sentiment: The rapid oversubscription reflects a robust appetite for fixed-income instruments within the financial services sector under current market conditions. • Next Steps: The basis of allotment will be notified to the Colombo Stock Exchange (CSE) shortly. Based on official company filings as of March 23, 2026.

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AIA Group Achieves Record Growth in 2025 📈

AIA Group has reported record-breaking financial results for the year ended 31 December 2025, driven by double-digit growth across key metrics and a strategic shift toward less capital-intensive products in the insurance sector. • Core Financial Highlights: Value of New Business (VONB) rose 15% to US$ 5.52 Bn. Operating Profit After Tax (OPAT) increased 12% per share to US$ 7.14 Bn. EV Equity reached US$ 79.7 Bn, up 14% per share. • Profitability & Returns: Operating ROE improved by 70 basis points to 15.5%. Operating ROEV stood at 15.8%, up 90 basis points. Net Free Surplus Generation (net FSG) grew 14% to US$ 4.45 Bn. • Shareholder Returns: Total dividend increased by 10% to 193.08 Hong Kong cents per share. Board approved a new US$ 1.7 Bn share buy-back program. Shareholder capital ratio remained strong at 221%. • Outlook: The Group remains confident in meeting its 2023–2026 OPAT CAGR target of 9% to 11%. Despite macroeconomic uncertainty, AIA highlights Asia as the premier growth hub for life and health insurance due to rising demand for protection and long-term savings.

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📈 Ambeon Holdings Proposes 1-for-4 Share Subdivision

The Board of Ambeon Holdings PLC has recommended a share split to enhance market liquidity, significantly increasing the number of shares in circulation without altering the company’s capital base. • The Split Details: Every 1 existing ordinary share will be subdivided into 4 new shares. • Share Volume: Total issued ordinary shares will rise from 356,869,666 to 1,427,478,664. • Capital Structure: The stated capital remains unchanged at Rs. 5,331,775,177. • Next Steps: The move is pending concurrence from the Colombo Stock Exchange (CSE) and final approval from shareholders at an upcoming Extraordinary General Meeting (EGM). _Note: Based on Board resolution dated 16 March 2026._

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### 📈 National Savings Bank (NSB) Posts Record Profits for 2025

The state-owned savings giant reported its highest-ever financial performance, driven by a sharp decline in impairment charges and robust growth in core interest income. Overall Financial Figures • Operating Profit: Surged 55% YoY to Rs. 59 Bn. • Profit After Tax (PAT): Group PAT rose 61% to Rs. 28.2 Bn; Bank-only PAT jumped 69%. • Total Assets: Expanded 4% to Rs. 1.83 t, supported by government securities and loans. • Total Contribution to Govt: Reached Rs. 38 Bn (including Rs. 30.1 Bn in taxes), a 77% YoY increase. Key Performance Metrics • Net Interest Income (NII): Grew 17% to Rs. 84.8 Bn, aided by a 14% reduction in interest expenses. • Net Interest Margin (NIM): Strengthened to 4.74% from 4.22%. • Fee & Commission Income: Rose 46% to Rs. 2.56 Bn, fueled by cards, remittances, and loan disbursements. • Efficiency: Cost-to-income ratio improved to 34.3%; Return on Equity (ROE) hit 25.08%. Asset Quality & Capital • Impairment Charges: Dropped 86% to Rs. 1.64 Bn, reflecting improved borrower creditworthiness. • Stage 3 Loan Ratio: Improved significantly to 2.53% (from 5.18% in 2024). • Deposit Base: Grew 3% to Rs. 1.6 t, backed by the bank's explicit Government guarantee. • Capital Adequacy: Total Capital Ratio stood at 26.83%, well above the 12.5% regulatory requirement. _Summary based on 2025 audited financial highlights._ ---

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📈 SriLankan Airlines $175 Mn Bond Restructuring Secured

Deputy Minister of Finance Dr. Anil Jayantha Fernando announced a major breakthrough in restructuring the aviation sector debt during a Parliamentary session today. • Approval Thresholds: The restructuring of the US$ 175 Mn bond, guaranteed by the Treasury, received consent from 98% of lenders, representing 99% of the total bond value. • Economic Impact: This move is framed as a critical step to move beyond stabilization. Successful sovereign debt restructuring has already contributed to an improved credit rating of CCC+ as of 2025. • Key Challenges: Unlike other sovereign debts, this specific bond was handled separately due to its Treasury guarantee, posing unique negotiation hurdles. • Next Steps: An official announcement detailing the specific terms of the restructuring is expected later today.

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Real Estate

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Galle City Center (GCC) Set for Grand Opening Tomorrow 📈

• Project Overview: The Southern Province will see a significant boost in its retail and tourism infrastructure with the launch of the Galle City Center (GCC), a 135,000 sq. ft. ultra-modern shopping and lifestyle complex. • Key Facilities: • Retail & Entertainment: Six dedicated floors featuring fashion, electronics, and diverse dining/leisure options. • Tourism & Hospitality: A four-star luxury hotel with 35 rooms occupying the upper floors. • Events: A state-of-the-art rooftop banquet hall and an upscale restaurant offering panoramic views of the Galle coastline. • Economic Impact: Founded by entrepreneurs Hemantha and Anusha Gamage, this nine-storey development is positioned to redefine the region's commercial landscape, catering to both local residents and the growing tourism sector in the South. • Capacity: Total space spans approximately 135,000 sq. ft. across nine levels.

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Home Lands Breaks Ground on Final Phase of Canterbury Golf City 🏗️

Home Lands has officially commenced the construction of Canterbury Crest Resort Apartments, marking the final phase of Sri Lanka's largest residential development project in Piliyandala-Kahaththuduwa. • Project Scope: The new phase features 96 modern Victorian-style units across 5-floor towers, offering 2 and 3-bedroom apartments. This addition complements the existing 1,200 units within the massive Canterbury Golf City complex. • Strategic Value: Located 20 minutes from Colombo and near the Southern Expressway, the project targets high demand for resort-style living. It includes premium amenities such as a swimming pool, pickleball court, and an outdoor gym. • Sector Impact: As a leader in the real estate & construction sector, Home Lands (a certified Superbrand) currently has over 2,200 units under construction. The project is handled by their in-house arm, Heyraa Construction, which holds the prestigious CS2 CIDA grading. • Market Position: The group has delivered 3,500+ units to date, with another 500 units slated for delivery within the next 6 months, signaling continued growth in the luxury residential and property development markets. 📈

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### Prime Group’s $ 52.5M "YOLO" Project Secures BOI Approval 📈

The Board of Investment (BOI) has signed a US$ 52.5 million investment agreement with Prime Group for its landmark residential development, "YOLO," located in Kiribathgoda. The project is recognized for its potential to drive urban economic development and attract foreign investment. • Project Overview & Scale: Spanning 13 acres in a flood-free zone, the development consists of 46 buildings housing 476 apartments. It features a modern architectural design aimed at elevated urban living. • Connectivity & Infrastructure: Strategically located 5 minutes from the Kadawatha Highway Entrance, providing rapid access to Colombo (<30 mins) and major cities like Kandy and Galle (1.5–2 hours). • Economic Impact: The project is expected to stimulate the construction and real estate sectors by generating significant direct and indirect employment in property management and maintenance. • Investment Details: • Total Investment: US$ 52.5 Million. • Entry Price: Units start from Rs. 35 Million. • Terms: 1% monthly interest-free payment plan. • Facilities: Over 100,000 sq. ft. of shared amenities including a bowling alley, cinema, co-working spaces, and a mini-supermarket. • Status: Construction is progressing on schedule. The project targets both local and international investors, with the company projecting high capital appreciation and rental potential.

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Sri Lanka’s Office Market Shifts Toward Managed Infrastructure 📈

The expansion of Kerner Haus Global Solutions PLC (formerly Kerner Haus) signals a structural pivot in Sri Lanka’s commercial real estate from traditional leasing to "operating capability." • Strategic Footprint: The company now operates managed facilities across Nawam Mawatha, Kew Road, Mount Lavinia, and Kandy, catering to teams of 40 to 400 seats. • Service-Driven Model: Unlike conventional landlords, the model focuses on "day-one readiness." Key features include: Furnished workspaces with 24/7 access. Business-grade internet and critical backup power. Integrated support: HR, Accounting, Legal, and IT services. • Sector Impact: The shift primarily benefits ICT/BPM, KPOs, SMEs, and foreign entrants. By reducing setup friction, these "plug-and-play" environments enhance Sri Lanka’s national competitiveness against regional peers like India (Awfis) and the Philippines (KMC Solutions). • Market Outlook: Office demand is increasingly decoupled from simple square footage. Growth is now driven by "business infrastructure" that allows firms to scale without the operational burden of managing physical utilities and maintenance.

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🏛️ Court Halts Asset Disposal by Blue Ocean Group Entities

The Commercial High Court of Colombo has issued interim injunctions against Blue Ocean Legand Ltd, Blue Ocean Waves, and Link Engineering—all affiliates of the prominent real estate & construction developer, Blue Ocean Group. • The Dispute: Action was filed by Horton Realty Ltd regarding a master agreement for 13 apartment units in a Colombo 03 condominium project valued at approximately Rs. 477.9 Mn. • Financial Terms: The deal involved a debt set-off of Rs. 277 Mn and Rs. 191 Mn in lieu of steel supplies from an affiliate, G.T.B. Steel Ltd. • Court Ruling: The injunction prevents the defendants from terminating the Sale and Purchase agreement or alienating/selling the units to third parties. • Context: The Plaintiff alleged the group failed to meet contractual obligations and threatened to dispose of the units. Sector Impact: This legal development highlights ongoing transparency and contractual risks within the property development and construction sectors, critical for investor confidence in Sri Lanka's high-end residential market.

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Court Halts Defamatory Content Against Rs. 110 Bn "Pentara" Project ⚖️

The Colombo District Court issued an enjoining order on March 16, 2026, against specific websites and social media channels regarding alleged false statements targeting the real estate and construction sector. • Legal Action: Home Lands Property Investments Ltd. secured the order (Case No. DMR 279/26) to restrain the dissemination of defamatory content concerning its "Pentara" project in Thummulla. • Project Valuation: The "Pentara" development is valued at over Rs. 110 Billion, representing a significant investment in the national economy. • Compliance Status: The court was informed that all necessary legal approvals and certifications have been duly obtained for the project. • Economic Impact: The plaintiff argued that coordinated defamatory campaigns could discourage investors and prospective purchasers, potentially causing substantial financial losses to the construction sector and the broader national economy. • Legal Representation: A legal team led by President’s Counsel M.U.M. Ali Sabry appeared for the developers, noting that the publications were malicious in nature.

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### Home Lands Group Hits Milestone: 3,500 Residential Units Delivered 📈

The real estate and construction market leader, Home Lands Group, has officially handed over its 3,500th unit, reinforcing its position in Sri Lanka’s luxury and themed residential sector. • Key Delivery Stats: The Group has successfully delivered 3,500 resort apartments and villas to date. It currently manages a portfolio of over 6,000 units, with 2,500+ units presently under construction. • Future Pipeline: Based on provisional project timelines, the remaining 2,500 units are scheduled for completion and delivery across 2026, 2027, and 2028 (within the next 30 months). • Sector Impact: The milestone was marked at the Greendale Retirement Resort, the country's first international-standard retirement village. The Group’s integrated model, including its CIDA CS2-graded construction arm, provides high contractor assurance within the infrastructure and housing sectors. • Market Standing: Home Lands was recently named "Best Developer – Sri Lanka" for three consecutive years (2021, 2024, 2025) and remains the only real estate Superbrand in the country, highlighting strong consumer trust and sector stability.

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Lanka Property Show 2026: Driving Sri Lanka’s Real Estate Growth 📈

The 10th edition of Sri Lanka’s flagship real estate exhibition, hosted by LankaPropertyWeb, is scheduled for March 21-22, 2026, at the Cinnamon Grand Colombo. The event highlights the recovery and expansion of the housing and construction sectors. • Market Offerings: Over 30 apartment and housing projects across Colombo and its suburbs will be showcased. Entry-level pricing for featured projects starts at LKR 28.3 million. • Key Participants: Major developers include John Keells Properties, Fairway Properties, Marina Square, and Global Housing. Financial integration is a core focus, with Commercial Bank (Official Banking Partner), DFCC, Seylan, and Sampath Bank providing home financing solutions. • Sector Insights: Expert panels will address global real estate positioning, demographic shifts, and domestic migration. Discussions led by the Advocata Institute and University of Sri Jayewardenepura aim to align urban development with evolving lifestyle demands. • Technological Integration: A hybrid format features a physical showcase alongside a virtual edition offering 3D virtual tours and real-time engagement, catering to both local and overseas investors. The event serves as a critical barometer for foreign direct investment (FDI) in property and the domestic banking and finance sector's appetite for mortgage growth.

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JKP Unveils Vauxhall DSTRCT: 100+ Units Sold at Launch 📈

John Keells Properties (JKP) has officially launched its latest residential project, Vauxhall DSTRCT, a 60-storey tower in Colombo 02. The development reported immediate market cooling, with over 100 apartments sold by the opening day. • Project Scope: A high-rise development featuring 1, 2, 3, and 4-bedroom residences located on Vauxhall Street, overlooking Beira Lake. • Real Estate Sector: The launch signals sustained demand for urban housing and middle-to-upper-income residential units in the capital's central corridor. • Tech Integration: Following the TRI-ZEN model, the project focuses on smart technology-enabled apartments, a growing niche in Sri Lanka’s ICT/BPM and modern lifestyle sectors. • Investment Outlook: Based on JKP data, the project targets capital appreciation and rental yield, citing the evolution of city-centre living and professional migration to urban hubs. • Strategic Impact: The project contributes to construction sector activity and reinforces the role of large-scale developers in shaping Colombo’s skyline through integrated lifestyle hubs.

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### Tourism Land Leasing Model Risks Repeating Kalpitiya Failures 📈

A new policy brief by the Centre for a Smart Future warns that the government’s plan to lease 3,000 acres of coastal land for tourism development faces significant structural risks, mirroring the stalled Kalpitiya Integrated Tourism Resort Program (KITRP). • The Kalpitiya Precedent: Launched in 2010 to create 4,000 rooms and up to 18,000 jobs, the project remains largely unbuilt after 15 years. Multiple island leases signed in 2010 have seen no construction due to regulatory hurdles and community disputes. • Infrastructure & Resource Gaps: Water: Only 54% of daily demand is met, leaving a shortfall of 3.5 million litres. Waste: The region generates 132 metric tons of waste daily, but facilities handle only 5 tons. Health: The local 40-bed hospital lacks specialist doctors, undermining high-end hospitality standards. • Environmental & Governance Concerns: 79% of EIAs failed to explain the effectiveness of mitigation measures. Environmental clearances currently take 6–9 months, leading to capital being tied up in idle land. Fragile ecosystems, including low-lying islands and poor mangrove survival rates (18-22%), threaten long-term viability. • Market Mismatch: While the state promotes high-end luxury models, current visitors to areas like Kalpitiya are primarily sports-oriented (kite surfers) and budget eco-tourists, leading to weak demand for luxury overwater bungalows. • Recommendations: Experts urge a "pre-leasing diagnostic framework" to assess infrastructure readiness and community acceptance before further land is allocated to the travel & leisure sector. _Note: Summary based on a policy brief by researchers Ashanee Kottage and Tehani Chandrasena Perera._

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📈 IESL Calls for Urgent Reform in Building Fire Safety

The Institution of Engineers Sri Lanka (IESL) has warned of "serious systemic weaknesses" in the nation’s fire safety framework amidst a rapid rise in high-rise condominiums and commercial towers. A high-level workshop involving the UDA, CIDA, and the Fire Service Department highlighted critical gaps in enforcement and accountability. • Institutional Gaps: There is currently no single authority responsible for fire safety throughout a building’s lifecycle. The UDA lacks independent technical capacity, relying heavily on the Colombo Fire Department for design reviews. • Regulatory Failures: While approvals exist at the planning stage, there is a lack of mandatory post-construction inspections and periodic safety certifications (e.g., annual fire audits) common in developed markets. • Risk to Investments: Experts noted that fire engineering is often ignored during initial design, making later rectifications in real estate and hospitality sectors complex and expensive. • Proposed Actions: • Establish a dedicated Central Fire Safety Authority. • Mandate regular inspections linked to occupancy permits and insurance. • Improve coordination between construction regulators and local authorities. • Integrate fire safety into school and university curricula. _Note: Summary based on IESL national dialogue report dated March 10, 2026._

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

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

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Global & International Business

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## Ceylon Chamber Delegation Completes High-Level Trade Training in India 📈

A 30-member professional delegation from the Ceylon Chamber of Commerce has concluded a specialized 9-day residential programme on International Trade Facilitation at the Indian Institute of Foreign Trade (IIFT), New Delhi. • Core Objectives: The programme focused on enhancing the role of chambers in supporting businesses to navigate global markets, contributing to national trade policy, and strengthening the broader trade ecosystem. • Key Knowledge Areas: International Trade Systems: Deep dives into trade negotiations and economic intelligence. Trade Finance: Strategies for funding and securing cross-border transactions. Digital Transformation: Addressing emerging impacts of AI, cyber risk, and digital trade. • Strategic Engagements: The delegation engaged with apex Indian bodies to study the synergy between policy, diplomacy, and industry: DGFT: Insights into foreign trade policy implementation. FIEO & CII: Understanding the interaction between industry associations and the exporting community. Sushma Swaraj Institute: Exploring the link between economic diplomacy and trade growth. • Significance: Led by IIFT Dean Dr. Rohit Mehtani, the initiative underscores a commitment to professionalizing Sri Lanka’s trade facilitation capabilities, positioning the Ceylon Chamber as a stronger advocate for national economic progress.

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India-Sri Lanka Defence Industry Seminar 2026: Strengthening Strategic Bonds 📈

The third edition of the India-Sri Lanka Defence Industry Seminar was held in Colombo, focusing on the theme "Identifying new opportunities and forging new bonds." Key highlights include: • Strategic Partnership: Defence Secretary Air Vice Marshal (Retd.) Sampath Thuyacontha emphasized an enduring partnership built on mutual trust and shared security interests between the two nations. • Industrial Cooperation: India’s advancing defence manufacturing sector was identified as a primary source for reliable, cost-effective technologies. • Growth Opportunities: Discussions centered on enhancing Sri Lanka's operational readiness through: • Technology transfers and joint ventures. • Specialized training programs. • Strategic cooperation in high-tech equipment and logistics. • Stakeholder Engagement: The event saw high-level participation from tri-forces Commanders, senior military officials, and industry experts, signaling a commitment to integrating defence ties with broader economic and security frameworks.

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## 📈 Sri Lanka and Russia to Strengthen Energy Cooperation

• Official Bilateral Meeting: President Anura Kumara Dissanayake is scheduled to meet Russian Deputy Energy Minister Roman Marshavin this evening (March 26) at the Presidential Secretariat in Colombo. • Core Objective: The high-level discussions will focus on enhancing bilateral cooperation within the energy sector, a critical component for Sri Lanka's national grid stability and industrial power requirements. • Strategic Context: This engagement signals a move toward strengthening international partnerships to secure energy resources and technical expertise, potentially impacting the infrastructure and petroleum segments. • Status: Discussions are ongoing; further details on specific agreements or project commitments are based on provisional meeting schedules.

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Japan Enhances Sri Lanka's Healthcare with South Asia's First 4D Angio CT Suite 📈

The Government of Japan has officially handed over cutting-edge medical infrastructure to the Sri Jayewardenepura General Hospital (SJGH), marking a significant upgrade in the island's healthcare & medical services capacity. • Advanced Technology: The handover features a state-of-the-art CT Angiography system, the first of its kind in South Asia. This system integrates CT scanning and angiography for high-precision diagnosis of non-communicable diseases (NCDs) such as cancer, stroke, and diabetes. • Dental Sector Expansion: The project includes 10 new dental units aimed at enhancing preventive healthcare and oral health services, aligning with Japanese health standards to extend life expectancy. • Strategic Partnership: This represents the second phase of a broader Japanese aid project, following an initial provision of ophthalmic equipment in late 2023. It underscores Japan's role as a key development partner in human security and "investment in people." • Historical Context: Built in 1984 via Japanese grant assistance, SJGH remains a symbol of bilateral ties. Japan’s support has been consistent, ranging from COVID-19 vaccine delivery to providing essential fuel for health services during the recent economic crisis. This investment is expected to position Sri Lanka as a regional medical hub, reducing long-term complications for patients and strengthening the national public health infrastructure.

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Deloitte Forum: Strategic Pathways for Sri Lankan Consumer Sector Expansion 📈

Deloitte Sri Lanka recently hosted "Growth Beyond Borders," a senior-leadership forum focused on driving regional expansion for the local consumer sector, specifically targeting high-growth Asian markets. • Core Strategy & Market Focus Sri Lankan brands are urged to look beyond domestic borders to ensure long-term scalability. India was identified as a primary target due to its expanding middle class and shift from price-driven to value-driven consumption. Other key growth hubs highlighted include Bangladesh and Vietnam, offering attractive demographics and "consumption-led expansion." • Sector Insights & Opportunities Consumer goods and manufacturing: Experts emphasized distinguishing between locations chosen for market access versus those selected for production efficiency. Export-led growth: Success stories like the Silvermill Group highlight the necessity of patience, deep due diligence, and strict legal/environmental compliance. • Regulatory & Financial Framework Tax & Compliance: Importance of navigating Free Trade Agreements (FTAs) and risks like "Permanent Establishments" when setting up trading hubs in Dubai or Singapore. Capital Access: The IFC (World Bank Group) has invested nearly US$ 1.00 Bn in Sri Lankan corporates over the last five years, providing growth capital for those meeting global governance standards. • Key Success Factors Shift toward data-driven business plans and "playing the long game." Prioritizing ESG (Environmental, Social, and Governance) standards to attract foreign investment. Identifying credible local partners to navigate fragmented retail landscapes and intense regional competition.

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Middle East Crisis Triggers Cargo Deadlock at Sri Lankan Ports 📈

• Overall Impact: Recent military strikes in the Middle East and the closure of the Strait of Hormuz have severely disrupted the US$ 19 Bn Japan-Korea used-car trade, leading to significant cargo diversions to Sri Lankan ports. • Port Congestion: The Hambantota Port and other local hubs are experiencing "panic" levels of congestion as vessels divert from Dubai. One shipment of 500+ vehicles was stranded at sea for over 10 days due to a lack of docking space in Sri Lanka. • Luxury & Commodity Trade: Approximately 50 high-end luxury vehicles, including Lamborghinis, Ferraris, and Rolls-Royces, are currently "stranded" or offloaded in Sri Lanka and China as they cannot reach Middle Eastern buyers. • Sector Vulnerabilities: Logistics: Shipping companies are demanding deposits of up to US$ 5,000 per car or threatening to return cargo to Japan. Used-Car Market: Sri Lanka remains a primary destination for compact Toyotas and Hondas, but the influx of diverted transshipment cargo is straining local infrastructure. Costs: Rising oil prices and freight rates are compounding pressures on small-scale exporters who rely on the UAE (which accounts for 15% of Japan's export volume). • Outlook: Based on industry reports, traders are in "wait-and-hold" mode. Prolonged conflict risks further storage costs and potential permanent rerouting of Asian exports away from traditional Middle Eastern hubs. _Source: Reuters (Provisional Data)_

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Indian Sugar Exports Surge as Rupee Hits Record Low; Sri Lanka Taps Supply 📈

A sharp depreciation of the Indian rupee and rising global prices have reignited Indian sugar exports, with 100,000 metric tons contracted in just one week. • Market Dynamics: The Indian rupee has fallen 4.5% in 2026, reaching a record low. This, coupled with global prices hitting a five-year high due to Middle East tensions and higher ethanol demand in Brazil, has made exports more lucrative than local sales. • Key Export Figures: • Total seasonal contracts: 550,000 tons (ending September). • Projected seasonal total: 1.5 million tons. • Current offer price: Approx. US$ 450 per ton (FOB). • Regional Impact: Sri Lanka, alongside African nations like Djibouti and Somalia, has booked shipments for April and May. India remains a preferred supplier for South Asian buyers due to significantly lower freight costs compared to Brazilian imports. • Trade Barriers: Despite a raised export quota of 2 million tons, shipments face logistical hurdles including limited container availability and rising freight rates. • Strategic Context: For Sri Lanka, the proximity to India provides a critical buffer against surging global shipping costs, ensuring essential commodity price stability amidst volatile energy markets.

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Pakistan Celebrates 86th National Day in Sri Lanka 🇵🇰

The High Commission of Pakistan in Colombo marked the 86th National Day of Pakistan on March 23, 2026, emphasizing the historical significance of the 1940 Lahore Resolution. • Diplomatic Relations: Acting High Commissioner Zunaira Latif highlighted the "traditionally close and mutually beneficial" ties between Pakistan and Sri Lanka, anchored in mutual respect and trust. • Economic & Sectoral Ties: The relationship is driven by diversified engagement across several key pillars, specifically: • Trade and Investment • Defense cooperation • Science, Culture, and Education • Key Sentiment: Leadership messages from Pakistan paid tribute to founder Quaid-e-Azam Muhammad Ali Jinnah while extending greetings to the Government and people of Sri Lanka, reinforcing bilateral stability.

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Bank of Ceylon Strengthens Indo-Lanka Banking Ties 📈

The Bank of Ceylon (BOC) recently concluded a high-level strategic visit to India led by Chairman Kavinda de Zoysa and CEO Y.A. Jayathilaka, aimed at reinforcing international operations and bilateral financial collaboration. • Regulatory Engagement: The delegation met with senior Reserve Bank of India (RBI) officials in Mumbai and Chennai. The RBI expressed satisfaction with BOC’s governance standards and regional performance, pledging continued support for future expansion. • Diplomatic & Trade Ties: Discussions with the Sri Lankan Deputy High Commissioner to Southern India focused on strengthening cross-border enterprise support and enhancing economic connectivity between the two nations. • Operational Focus: Leadership engaged with branch staff and the Country Manager to align on international regulatory frameworks and improve service delivery for banking & finance customers in the region. • Strategic Outlook: The visit emphasizes BOC’s role in driving regional financial integration, identifying emerging market opportunities, and fostering long-standing relationships with high-value international clients.

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Iran Offers Fuel and Essential Supplies to Sri Lanka 🇮🇷🇱🇰

Iranian Ambassador Alireza Delkhosh has reaffirmed Iran’s readiness to support Sri Lanka’s economic stability through the supply of critical resources. • Energy & Essentials: Iran has expressed immediate readiness to supply crude oil, fuel, and other essential goods to Sri Lanka upon official request to prevent supply disruptions. • Maritime Security: Ambassador Delkhosh clarified that the Strait of Hormuz—a vital global shipping lane—remains fully accessible to friendly nations like Sri Lanka, dismissing concerns over potential maritime restrictions. • Diplomatic Cooperation: The offer highlights longstanding ties, citing past bilateral assistance such as Sri Lanka’s rescue of the Iranian naval vessel IRIS Dena crew. • Repatriation Support: The Iranian government is also prepared to facilitate and arrange the return of Sri Lankan nationals currently in Iran if required. _Summary based on official statements as of March 24, 2026._ 📈

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### 📈 India-Sri Lanka Financial Capacity Building Initiative

A 25-member delegation from the Central Bank of Sri Lanka (CBSL) completed a specialized training program at the Reserve Bank Staff College in Chennai, India, from March 2–6, 2026. • Core Focus: Titled "Financial Frontiers – Innovation, Resilience and Internationalisation," the program targeted contemporary central banking challenges, focusing on financial innovation and systemic stability. • Key Training Areas: • Digital Finance: Emerging technologies and their impact on central banking. • Monetary Policy: Strategic insights into reserve management and currency internationalisation. • Fintech & Payments: Exposure to global best practices in fintech regulation and payment systems. • Strategic Context: This initiative is part of India’s 2025 commitment to provide 700 customised training slots annually for Sri Lankan professionals. • Economic Impact: Strengthening institutional linkages and professional competencies is expected to enhance policy readiness and bilateral cooperation in the financial sector.

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Sri Lanka and Brazil Set Target to Reach US$ 1 Bn Bilateral Trade by 2030 📈

Sri Lanka and Brazil concluded the Second Round of Bilateral Political Consultations in Colombo on March 20, 2026, marking a significant step in strengthening economic and diplomatic ties. • Trade & Investment: Both nations agreed to elevate bilateral trade to US$ 1 Bn by 2030, emphasizing diversification to meet evolving global economic dynamics. • Agriculture & Technical Cooperation: Finalized agreements for a Dairy Livestock Project and a Sugarcane Project are expected to be signed soon with support from the Brazilian Cooperation Agency (ABC), boosting local animal husbandry and agricultural research. • Key Sectors for Collaboration: New avenues for cooperation were identified in ports and shipping, sports, and agriculture, aiming to leverage Brazilian expertise for Sri Lankan sectoral growth. • Legal & Security Framework: Committed to finalizing pending MoUs on defense, law enforcement, countering human smuggling, and traditional/Ayurvedic medicine. • Diplomatic Milestones: Discussions covered President Anura Kumara Dissanayake’s upcoming state visit to Brazil and the revival of Parliamentary Friendship Groups, including an upcoming visit from a Brazilian women’s parliamentary delegation. Based on official 2026 bilateral consultation data.

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Industry & Sector News

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No Price Hike for Confectionery Products Until May 📈

The Lanka Confectionery Manufacturers Association (LCMA) has confirmed that retail prices for biscuits, ice cream, and chocolates will remain unchanged through the upcoming festive season, following a meeting with the Minister of Trade. • Price Stability: No price revisions will occur until at least May 2026, ensuring consumer relief during the peak Sinhala and Tamil New Year period. • Cost Pressures: Manufacturers report rising costs for ingredients, gas, and electricity. While prices haven't increased since the post-COVID period, the industry is currently operating on "limited profits." • Supply Chain Hurdles: The sector is facing delays in customs clearing and additional shipping surcharges due to the ongoing Middle East conflict. • Distribution Needs: The LCMA has requested a streamlined fuel supply system to ensure the efficient distribution of goods across the island. • Future Outlook: A price revision may be considered after May if operational costs—specifically energy and raw materials—continue to climb. This decision aims to balance industry sustainability with the food security and purchasing power of Sri Lankan consumers during high-demand months.

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📈 Sri Lanka Hosts Landmark Destination Wedding in Hambantota

The Government of Sri Lanka, alongside the SLTPB and SLCB, has endorsed a major international wedding at Shangri-La Hambantota, signaling a strategic push to position the island as a premier global hub for large-scale destination events. • Economic Impact & Scale The four-day celebration for entrepreneur Mujtaba Shaikhani and Dr. Hafsha Merchant hosted over 800 international guests. Visitors stayed an average of 5 to 7 nights, providing a significant boost to the tourism & hospitality sector and local foreign exchange earnings. • Key Markets & Demographics Attendees arrived from high-value markets including the UAE, India, Pakistan, and the UK. The event highlights Sri Lanka's capability to cater to the luxury segment across South Asia, the Middle East, and Europe. • Strategic Importance The Ministry of Foreign Affairs and Tourism identified the promotion of such events as a "major responsibility." This landmark gathering serves as a case study for diversification within the tourism industry, shifting focus toward high-spend niche markets like international weddings and MICE (Meetings, Incentives, Conferences, and Exhibitions). • Infrastructure & Readiness The successful execution of "The Royal Affair" underscores the readiness of private-sector infrastructure, such as the Shangri-La Hambantota Golf Resort & Spa, to handle complex, large-scale international logistics and world-class hospitality standards. _Source: Based on official event reporting and government endorsements (March 2026)._ ---

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📈 Tourism Task Force Scrambles to Mitigate Middle East Conflict Impact

Sri Lanka’s tourism sector is facing fresh pressure as the Middle East conflict disrupts global aviation, prompting the Presidential Task Force to prioritize operational stability and market diversification. • Overall Performance & Impact Total arrivals for 2026 crossed the 700,000 mark (708,348 YTD), maintaining a modest 4.45% YoY growth. However, March data reveals a sharp 22% YoY slump between March 1-25, with arrivals falling to 151,693. Daily averages dropped to 6,068 from 7,407 last year. • Sector Vulnerabilities Approximately 30-34% of visitors rely on Middle Eastern transit hubs. Conflict-related disruptions have led to over 440 flight cancellations this month, with industry leaders reporting a 50% hit to real revenue. Monthly losses are estimated between US$ 80 Mn and US$ 100 Mn. • Top Source Markets (March 1-25) India: 39,424 (26% share) UK: 13,967 Russia: 13,272 China: 12,166 Germany: 10,523 • Strategic Response The Task Force, led by Minister Vijitha Herath, is focusing on securing an uninterrupted fuel supply for hotels and attractions. Plans are underway to target alternative source markets less affected by the conflict to stabilize forward bookings for the May-July period, which currently remain weak for long-haul European travelers. 🇰🇵 _Note: Based on provisional March arrival data._

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APHNH Healthcare Leadership Summit 2026: Driving Private Sector Reform 📈

The Association of Private Hospitals and Nursing Homes (APHNH) concluded its inaugural summit on March 9, 2026, at Waters Edge, focusing on actionable priorities for Sri Lanka's private healthcare and medical insurance sectors. • Strategic Objectives The summit aimed to transition from discussion to implementation, focusing on quality, transparency, and public confidence. Key outcomes include the creation of a trackable "outcome charter" to monitor progress on national health priorities. • Sector Insights & Leadership Hospital Management: Experts from Sri Lanka, Thailand, and India discussed scaling operations without compromising patient safety or quality. Insurance: Discussions highlighted emerging expectations for risk management and the evolving relationship between insurers and healthcare providers. Investment: Explored conditions required to make Sri Lanka more competitive for healthcare investment and innovation, drawing parallels with Thailand’s model. • Key Reform Areas Data Discipline: APHNH reiterated the need for consistent transparency and structured service quality monitoring. Public-Private Collaboration: Emphasis on easing pressure on the public sector and strengthening the continuity of care through regulatory alignment with the Ministry of Health and PHSRC. • Participant Profile The invitation-only event convened hospital leaders, policymakers, international experts, and investors to shape future delivery standards for the healthcare industry. _Source: Based on proceedings from March 26, 2026._

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Mixed Results for February Tea Exports as Cumulative Gains Hold Steady 📈

• Overall Performance February exports reached 19.92 M/Kgs, a marginal dip of 2.3% YoY (0.48 M/Kgs). However, cumulative Jan-Feb performance remains positive with 40.63 M/Kgs shipped, up 2.1% YoY (0.86 M/Kgs). • Value & Pricing The cumulative FOB value rose to Rs. 1,804.08 per kg ($ 5.83), an increase of Rs. 73.75 YoY. While rupee earnings strengthened due to higher local prices, dollar-denominated gains faced pressure across most segments except tea bags and green tea. • Sector Breakdowns Tea packets and instant tea saw volume growth in February. In contrast, bulk tea, tea bags, and green tea experienced monthly declines. For the Jan-Feb period, all product segments maintained positive volume variances. • Top Markets Iraq: Remained the top buyer at 6.53 M/Kgs (+9% YoY). Türkiye: Recorded a massive 124% surge to 4.40 M/Kgs, moving to 2nd place. Russia: Slipped to 3rd place with 3.72 M/Kgs (-9% YoY). Azerbaijan: Saw robust growth of 46% (2.19 M/Kgs). UAE: Declined 8% YoY, matching Azerbaijan's volume. The tea industry continues to navigate shifting trade flows, with growth in Türkiye and Azerbaijan offsetting softer demand in traditional markets like Russia, amid ongoing geopolitical tensions in the Middle East.

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### 📈 Supply Chain Disruptions to Drive Higher Import and Energy Costs Through Q3 2026

Expert analysis from Shippers’ Academy Colombo warns that even if Middle East hostilities cease immediately, the ripple effects on global shipping and logistics will persist into 2Q and 3Q 2026, keeping import and energy costs elevated for Sri Lanka. • Shipping & Freight Costs: Vessel availability remains a critical bottleneck. Daily charter rates for large tankers have surged from US$ 180,000 to nearly US$ 300,000. Freight rates have doubled or tripled depending on routes due to war risk surcharges and rising insurance premiums. • Operational Delays: Rerouting via the Cape of Good Hope to avoid the Red Sea is adding up to 21 days in transit time. Traffic through the Strait of Hormuz has dropped significantly, with daily vessel crossings falling from 140 to approximately 90. • Energy Impact: While the Government has secured fuel and gas orders through the end of 2026 via forward contracting, execution risks remain. Bunker fuel costs have spiked by nearly 150% following the shutdown of the Fujairah hub, directly inflating overall shipping expenses. • Economic Outlook: Disruptions are extending into aviation and land transport, threatening domestic price stability. While Sri Lankan ports may see a short-term boost in activity due to regional congestion, structural constraints may limit the ability to fully capitalize on these shifts.

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### 📈 Sri Lanka’s 5G & FWA: Bridging the Digital Divide

A new report highlights the critical role of 5G Fixed Wireless Access (FWA) in connecting rural Sri Lanka, where 80% of the 23 million population resides. Despite a 59.7% internet penetration rate, nearly 9 million citizens remain offline as of early 2026. • Current Landscape: Internet Users: 13.9 million (59.7% penetration). Rural Connectivity: Fixed broadband remains largely confined to Colombo and major urban hubs. 5G Launch: Commercial 5G services commenced in December 2025 following the TRCSL spectrum auction. • The FWA Advantage: Telecom Infrastructure: FWA delivers fiber-like speeds wirelessly, bypassing the high costs and delays of laying physical cables in rural areas. Historical Success: A previous 4G FWA rollout (2013–2018) tripled home broadband penetration from 9% to 26%, adding 800,000 households. • Economic Impact: Regional Growth: Mobile technologies contributed US$ 950 Bn (5.6% of GDP) to the Asia-Pacific economy in 2024; projected to reach US$ 1.4 Tn by 2030. Local Necessity: Reliable home internet is now vital for remote work and digital education amid ongoing economic and fuel-related disruptions. • Challenges to Adoption: High cost of 5G-enabled consumer devices. Rural electricity reliability and digital literacy gaps. Mobile coverage already exceeds 90%, providing a strong foundation for rapid FWA expansion.

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Banking Leaders Tackle Rising Digital Fraud Risks in Colombo 📈

Sri Lanka’s financial sector leaders recently convened for the "Fraud Management Deep Dive 2026," co-hosted by IFINITY and BPC, to address escalating security threats in the rapidly evolving digital payments landscape. • Strategic Shift: Industry experts emphasized moving beyond isolated, channel-based controls toward enterprise-wide fraud management. This integration is critical for maintaining trust as instant payments and mobile banking continue to grow. • Emerging Threats: Discussions highlighted new risks including AI-driven impersonation, synthetic identities, and authorized push payment (APP) fraud, requiring faster detection and coordinated response across risk and compliance teams. • Technology & Compliance: The forum underscored the need for AI-powered platforms, such as BPC’s SmartVista, to monitor transactions in real-time. New regulatory expectations for technology risk management and incident reporting are now driving mandatory upgrades in bank monitoring systems. • Economic Impact: With BPC supporting over 60% of APAC countries and major tier-1 projects in Sri Lanka, the focus remains on ensuring that the ICT/BPM and banking sectors remain resilient to sustain national financial stability.

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### 📈 AI: The New Frontier for Sri Lanka’s Fuel & LPG Security

Recent geopolitical tensions in the Strait of Hormuz—where 20% of global oil and gas flows—have triggered a "global energy stress test," with prices potentially exceeding US$ 100 per barrel. For Sri Lanka, traditional reactive management is being replaced by AI-driven strategic resilience. • The Crisis Context The Iran-US-Israel conflict poses an existential threat to energy supplies. Disruptions lead to immediate inflationary pressure, logistical delays in LPG imports, and the rapid depletion of national strategic reserves. • AI-Powered Solutions A global research collective, including four Sri Lankan researchers from York St John University, is developing AI systems to transition from local operational fixes to proactive security. Key applications include: Predictive Modelling: Forecasting price spikes and supply chain halts. Smart Allocation: Managing demand during shortages to prevent public disorder. Early Warning Systems: Linking national dashboards to global energy intelligence. • Strategic Imperatives for Sri Lanka To safeguard the economy, the report advocates for: Digital monitoring of supply chains. Data-driven decision-making for fuel and energy distribution. Investment in AI-enabled crisis response to move from "management" to "prevention." _Summary based on research data from the AI for Climate & Disaster Resilience Research Group (AICDRG) as of March 2026._ ---

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Govt. Assures Stable LPG and Fuel Supplies for April 📈

The Sri Lankan government has confirmed that liquefied petroleum gas (LPG) and fuel shipments are scheduled to ensure domestic market stability and meet monthly demand. • LPG Supply Outlook (State Sector) Litro Gas Lanka Ltd. expects a 22,000-ton shipment on 28 March, followed by an additional 22,000 tons in April. • LPG Supply Outlook (Private Sector) Laugfs Gas PLC is scheduled to receive 8,000 tons between 30-31 March and 21,000 tons from 25-28 April. This significantly exceeds their typical monthly supply of 7,000–8,000 tons. • Energy & Infrastructure • Fuel & Petroleum: Tenders for crude and refined oil have been opened, with multiple shipments expected in April to maintain national energy security. • Storage: Discussions are ongoing regarding the use of Laugfs’ Hambantota storage facilities to augment national capacity if required. • Current Status While total volumes are projected to exceed national demand, officials noted that the focus remains on resolving distribution logistics to prevent localized disruptions. These measures aim to mitigate volatility caused by global geopolitical tensions.

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🍞 Bakery Product Prices Increase by Rs. 10 Nationwide

The All Ceylon Bakery Owners Association (ACBOA) has announced an immediate price hike of Rs. 10 for bread and all bakery snacks effective today, March 24, 2026. • Overall Price Adjustment: A flat increase of Rs. 10 across the board for all bakery items. • Bread Prices: The price of a standard 450g loaf rises from Rs. 120 to Rs. 130. • Primary Drivers: The revision is attributed to rising costs in fuel (specifically diesel) and raw materials, including wheat flour and ancillary ingredients. • Sector Impact: Approximately 30% of bakeries nationwide utilize diesel-powered ovens, making the food & beverage production sector highly sensitive to energy price volatility. • Context: ACBOA President N.K. Jayawardena noted the decision was unanimous, citing eroded margins and the inability to absorb further production and transport expenses.

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Public Transport and Three-Wheeler Fares Hiked Following Fuel Price Revision 📈

Sri Lanka’s public transport costs have increased sharply effective today, triggered by a significant jump in diesel prices. • Bus Fare Revision: The National Transport Commission (NTC) has implemented a 12.19% increase across all service categories (Normal, Luxury, and Super-Luxury). • Fare Thresholds: The minimum bus fare rises from Rs. 27 to Rs. 30, while the maximum fare increases to Rs. 2,422 (previously Rs. 2,159). • Fuel Impact: The revision follows a cumulative Rs. 93 increase in Lanka White Diesel, which rose from Rs. 303 to Rs. 382 per litre on 22 March, exceeding the 4% threshold required for interim adjustments. • Three-Wheeler Rates: In the Western Province, the starting fare for the first kilometre has increased from Rs. 100 to Rs. 110, with subsequent kilometres set at Rs. 90. • Regulatory Compliance: The NTC has instructed both SLTB and private operators to adhere strictly to these approved rates. Passengers can report overcharging via the 1955 hotline. This adjustment marks the first significant fare change since July 2025, reflecting the immediate impact of energy costs on the transportation and logistics sector.

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Economic News

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Sri Lanka Tourist Arrivals Surpass 700,000 Milestone 📈

Sri Lanka's tourism sector continues its recovery momentum, crossing a significant threshold within the first quarter of 2026. • Overall Performance: Total foreign arrivals for 2026 have reached 708,348 as of March 25, according to provisional data from the SLTDA. • March Snapshot: A total of 151,693 tourists arrived between March 1 and March 25. • Top Source Markets: - India: Remains the primary driver, accounting for 26% (39,424) of March arrivals. - United Kingdom: Contributed 9% (13,967) of the monthly total. - Russia: Followed closely with 13,272 arrivals. • Market Trends: A notable decline in European arrivals has been observed in March compared to the first two months of the year. This shift is attributed to geopolitical tensions and the war-like situation in the Middle East impacting travel routes and sentiment.

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📈 Global Economic Impact: Iran Conflict Adverse Scenario Analysis

Fitch Ratings has modeled a scenario where the Iran conflict persists through 1H26, driven by soaring oil prices and declining equity markets. For a fuel-importing economy like Sri Lanka, these global shifts signal significant inflationary pressure and external sector risks. • Macroeconomic Impact: Global real GDP is projected to be 0.8% lower than base case forecasts after four quarters. World growth for 2026 would drop to 1.7% (compared to the 2.5% base case), potentially slowing demand for Sri Lankan exports like tea and apparel & textiles. • Sector & Market Drivers: Higher oil prices would hit major trading partners like the US, Japan, and South Korea hardest. A decline in global equity prices would further dampen US GDP due to wealth effects, impacting consumer spending power in a primary destination for Sri Lanka's ICT/BPM and manufacturing sectors. • Inflationary Surge: Inflation across major economies could rise by 1.3pp. Notably, India—a key regional partner—could see inflation jump by over 2pp, likely increasing the cost of intermediate goods and food imports for Sri Lanka. • Revised 2026 Growth Projections: US: 1.5% (down from 2.2%) Eurozone: < 1.0% (down from 1.3%) China: < 4.0% (down from 4.3%) _Note: Analysis based on Fitch Ratings and Oxford Economics Global Economic Model; excludes potential government fiscal interventions to cap energy prices._

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📈 Middle East Crisis Dampens March Export Outlook

Sri Lanka’s export sector faces a projected contraction of 5% to 8% in March 2026, as geopolitical tensions in the Middle East disrupt vital trade routes and logistics. • Overall Impact: The initial monthly growth projection of 10% has moderated to 7.5% in the first two months and is expected to dip further this month. • Regional Exposure: The Middle East accounts for 8% of total exports (US$ 1.08 Bn in 2025). Key markets include the UAE (32%), Iraq (18%), and Saudi Arabia (12%). • Sector Vulnerability: Tea is the most at-risk commodity, representing over 50% of shipments to the Middle East. • Logistics & Costs: Escalating freight and insurance costs, along with transit delays to the US, EU, and UK, are creating knock-on effects across the apparel & textiles and manufacturing networks. • Policy Shift: The EDB is seeking to delay the phased removal of Cess on 2,634 items (originally slated for 2026–2028) to protect local exporters amidst global volatility. • Outlook: Recovery is cautiously expected by May/June 2026. Strategies focus on market diversification and the proposed Sri Lanka-Japan economic corridor to access India and Africa. _Source: EDB Provisional Data_

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### Labour Market 4Q 2025: Unemployment Drops to 3.8% Amid Sectoral Shifts 📈

Sri Lanka’s labour market showed resilience in 4Q 2025, with unemployment falling despite a dip in participation and significant climate-related disruptions. • Key Indicators Unemployment Rate: Declined to 3.8% (from 4.3% in 3Q). Labour Force Participation: Eased to 48.8% (from 49.9% in 3Q), though higher than 47.7% YoY. Total Employment: Increased to 8.47 Mn (from 8.10 Mn in 3Q). • Sectoral Breakdown Services: Now accounts for 50.6% of total employment (4.28 Mn persons). Industry: Comprises 26.3% of the workforce (2.23 Mn persons). Agriculture: Represents 23.2% (1.96 Mn persons). • Climate & Economic Impact Growth: GDP expanded 4.8% in 4Q, contributing to a full-year 2025 growth of 5%. Cyclone Ditwah: Estimated physical damage of US$ 4.1 Bn (4% of GDP). Tea & Rice: Impacts on agriculture were severe, with potential tea output losses of 35% and 23% of rice lands affected. Earnings: The ILO estimates potential monthly wage losses of US$ 48 Mn for 374,000 workers in disaster-hit areas. • Demographics & Education Gender: Male participation stood at 68.1%; Female participation dipped to 32.3% from 33.9% in 3Q. Youth: Unemployment improved to 13.1% (from 14.9% in 3Q). Education: Unemployment for those with G.C.E. A/L and above dropped significantly to 5.2%. _Data based on provisional reports from the Dept. of Census & Statistics, ILO, and World Bank._

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### OECD Cuts Global Growth Outlook on Energy Shocks & Inflation 📈

The OECD March 2026 Interim Report has reversed previous upward revisions, forecasting a slowdown in global GDP growth due to escalating Middle East conflict and surging energy costs. • Overall Figures Global GDP growth is projected at 2.9% for 2026 and 3.0% for 2027. G20 headline inflation is expected to spike to 4.0% in 2026 (up from 3.4% in 2025) before easing to 2.7% in 2027. Brent crude and European gas prices are forecast to be 40% and 60% higher, respectively, than late 2025 projections. • Impact on Major Economies USA: Growth to ease from 2.0% in 2026 to 1.7% in 2027 as purchasing power declines. Euro Area: Growth slowed to 0.8% in 2026 (from 1.4% in 2025) due to high energy costs. India & China: Growth moderating; China projected at 4.4% (2026) and India slowing as fiscal support fades and energy costs rise. • National Context & Risks As an import-dependent economy, Sri Lanka faces headwinds from higher energy & fertiliser prices, which could strain the tea and apparel & textiles sectors through increased production and logistics costs. Rising global inflation may dampen demand in key export markets (US/EU), impacting the ICT/BPM and manufacturing sectors. Net energy importers with limited inventories are flagged as most vulnerable to these "terms of trade" shocks.

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Post-Cyclone Ditwah: Shift Toward Climate Resilience 📈

The impact of Cyclone Ditwah (Nov 2025) has triggered a strategic shift in Sri Lanka’s disaster management, moving from reactive response to systemic risk reduction. With average temperatures projected to rise by 1.5°C to 3.4°C this century, the economic stakes for the island are intensifying. • Disaster Impact & Damage Cyclone Ditwah affected 2.3 million people, causing a cascade of food and livelihood crises. Infrastructure was the hardest hit sector, accounting for 42% of total damages, followed by residential buildings at 24%. • Sectoral Vulnerabilities The agriculture sector faced significant disruption as damaged irrigation tanks inundated paddy fields. Conversely, areas under the Climate Resilient Integrated Water Management initiative saw higher survival rates for crops due to reinforced water tanks and early-warning agro-met advisories. • Fiscal & Risk Financing The government is prioritizing "fiscal preparedness" to avoid diverting development budgets toward emergency relief. Key focus areas include: Implementing the National Climate Finance Strategy. Exploring parametric disaster insurance (similar to the Caribbean’s CCRIF) to trigger automatic payouts. Strengthening building standards and industrial zoning for MSMEs to ensure business continuity. • Strategic Outlook Current recovery efforts, supported by the UNDP, EU, and World Bank, focus on data-driven assessments to bridge the gap between natural hazards and national economic stability.

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📈 Sri Lanka’s Feb 2026 Exports Reach US$ 1.4 Bn with 4.2% Growth

Sri Lanka’s total export earnings (merchandise and services) rose to US$ 1,401.78 Mn in February 2026, reflecting a 4.22% YoY increase compared to February 2025. • Overall Performance Total cumulative exports for Jan–Feb 2026 reached US$ 2,896.31 Mn, recording a solid growth of 7.56% YoY. • Sector Breakdown • Merchandise Exports: Increased by 1.32% to US$ 1,066.88 Mn. Key sectors contributing to this include Gems & Jewellery and Petroleum Products (based on provisional and estimated data). • Services Exports: Demonstrated strong momentum with an estimated US$ 334.9 Mn, marking a significant 14.68% jump from 2025. • Economic Context The robust performance in the services sector continues to diversify the national export portfolio, while steady merchandise performance supports the resilience of the external sector. _Note: Figures for Services, Gems & Jewellery, and Petroleum are based on provisional estimates._

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### National Productivity: The Only Path to Economic Sovereignty 📈

Sri Lanka faces a critical crossroad where systemic reform must be met with a shift in citizen mindset to escape the "subsidy culture" and entitlement trap. Based on recent analysis, increasing individual and national output is the only sustainable hedge against inflation and insolvency. • Core Economic Drivers Productivity is defined as the mathematical necessity to transform resources (labor, capital, and natural assets) into high-value goods. The goal is to move from a consumption-led model to a "virtuous cycle" where efficiency lowers production costs and boosts export revenues. • Strategic Sectoral Reforms Public Sector: Urgent need for full digitization (Unified Digital ID) to eliminate "red tape" and "speed money" cultures. Agriculture: Transition from subsistence farming to commercial agri-business via land consolidation and IoT/data analytics. Human Capital: Closing the "skills gap" through STEM prioritisation and modernizing archaic labor laws to allow "flexicurity." Manufacturing: Removing protectionist para-tariffs to force local firms to compete globally and integrate into Global Value Chains (GVCs). • The "Vietnam Model" Benchmark Success in Vietnam was driven by shifting labor from low-value agriculture to high-tech manufacturing (electronics & textiles) and leveraging 15+ Free Trade Agreements (FTAs). • Societal Call to Action Economic liberation requires 23 million citizens to view personal output as the national currency. Eradicating "micro-shortcuts" and "referral traps" (nepotism) is essential to stop the erosion of meritocracy. _Note: Analysis emphasizes that while the Government provides the framework, citizens must provide the engine for growth._

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📈 IMF Review: Significant Policy Adjustments Expected Amid Global Shocks

CBSL Governor Dr. Nandalal Weerasinghe has signaled that the upcoming IMF mission (March 26 – April 9) may result in more substantial changes to program targets than previous reviews, primarily due to intensifying geopolitical volatility. • Key Objectives & Funding • The mission aims to reach a staff-level agreement by combining the Fifth and Sixth Reviews of the Extended Fund Facility (EFF). • Successful completion would unlock approximately US$ 700 Mn (combined 6th and 7th tranches). • Delays in the 5th review were partly due to fiscal impacts from Cyclone Ditwah reconstruction in late 2025. • Macroeconomic Adjustments • Significant revisions are expected for policy targets and macroeconomic projections to reflect "new situations." • Major external pressures include the Middle East conflict, which threatens energy prices and global trade flows. • Discussions will focus on International Net Reserves (INR) and potential Balance of Payments (BOP) challenges. • Current Buffers • Gross Official Reserves currently stand at US$ 7.3 Bn, providing a cushion against short-term volatility. • However, sustained high commodity prices remain a risk to foreign exchange outflows. _Note: Projections are based on provisional data pending the conclusion of the IMF staff visit._

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📈 CBSL Rejects New Debt Moratorium for MSMEs

The Central Bank of Sri Lanka (CBSL) has signaled stability in the financial sector, with Governor Dr. Nandalal Weerasinghe stating there is currently no justification for a fresh financial moratorium or the suspension of the parate law for micro, small, and medium enterprises (MSMEs). • Current Assessment: Despite rising energy and input costs, the CBSL maintains that the banking sector remains healthy and resilient. • No Official Requests: No formal appeals have been made to the CBSL for debt relief measures, notwithstanding calls from opposition leadership and specific industry groups. • Asset Quality: Current indicators show no visible trend toward a spike in Non-Performing Loans (NPLs) or a deterioration in asset quality. • Economic Context: The decision comes amidst concerns from the plantation and MSME sectors regarding mounting economic strain, though the Governor noted it is "too early" to recommend intervention. _Source: Based on provisional statements from CBSL media briefing, March 2026._

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### CBSL Chief: No Immediate Restrictions Despite ME Conflict 📈

Central Bank Governor Dr. Nandalal Weerasinghe confirms that Sri Lanka’s improved macroeconomic buffers eliminate the need for new import or capital controls amidst Middle East tensions. • Foreign Inflows & Resilience Workers’ remittances remain the economy's strongest pillar. February inflows surged 33% YoY to US$ 729 Mn. Cumulative remittances for the first two months of 2026 reached a record US$ 1.48 Bn (+32% YoY). There are currently no signs of large-scale worker returns from the Middle East. • Sectoral Impact • Tourism: Arrivals have dropped by 17% due to geopolitical uncertainty. Cumulative earnings for the period fell 4.9% YoY to US$ 730.3 Mn. • Energy & Inflation: Despite global oil volatility, March inflation is projected at 2%. The CBSL expects inflation to stabilize around 5% by Q2 2026, even with recent energy price hikes. • Policy & Exchange Rate The CBSL will maintain a flexible exchange rate, intervening only to curb excessive volatility. The Governor emphasized that structural reforms in banking, labour, and land must proceed to build long-term economic resilience. • Outlook Sri Lanka is positioned to absorb external shocks better than in 2022. While adjustments to policy paths may occur if the crisis persists, current buffers are deemed sufficient to manage short-term global disruptions.

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📈 ADB President & CBSL Governor Discuss Economic Reforms

ADB President Masato Kanda met with CBSL Governor Dr. Nandalal Weerasinghe on March 23 during an official three-day visit to Sri Lanka to review the nation’s recovery trajectory. • Focus Areas: The high-level dialogue centered on current economic developments, the progress of ongoing structural reforms, and specific monetary policies managed by the Central Bank. • Strategic Alignment: Discussions emphasized stabilizing the financial sector and aligning fiscal planning with international development goals. • Key Stakeholders: The meeting included the Minister of Labour and Foreign Employment, the Secretary to the Treasury, and senior advisors, signaling a coordinated approach toward economic development and foreign employment policy integration. • Context: This visit underscores the Asian Development Bank’s continued role as a primary multilateral partner in supporting Sri Lanka’s transition from crisis management to long-term sustainability.

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Politics & Government Impact

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National Security & Social Cohesion: Navigating Islamic Ideological Discourse 📈

• Overview: A strategic analysis by a former Counter-Terrorism head highlights the delicate balance between addressing extremist threats and maintaining social stability. It warns against "narrative escalation" that blurs the line between the broader Muslim community and extremist networks. • Key Risks Identified: • Overgeneralization: Conflating diverse strands (Salafi, Wahhabi, Sufi, Shia) into a single security framework. • Defensive Isolation: Securitizing identity risks reducing human intelligence flows and trust in state institutions. • External Influences: Radicalization is linked to external ideological penetration and digital platforms rather than local traditions. • Strategic Recommendations: • Institutional Platform: Establish a formal, apolitical mechanism for dialogue between the government, security sector, and community leaders. • Counter-Extremism Narrative: Clearly distinguish between faith, ideology, and violence to protect Sri Lankan Islam's historically moderate and pluralistic roots. • Community Proactivity: Encouraging internal leadership to strengthen religious education and counter exclusionary narratives. • Context: Post-Easter Sunday attack security remains a priority, but the report stresses that "misdiagnosed" security challenges often re-emerge in more complex, polarized forms.

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Retrial Ordered in Nadarajah Raviraj Assassination Case ⚖️

The Court of Appeal has overturned the 2016 acquittal of several suspects, including three Navy intelligence officers, in the high-profile assassination of former TNA MP Nadarajah Raviraj. • Legal Development: Justices B. Sasi Mahendran and Amal Ranaraja set aside the previous Colombo High Court verdict following an appeal by the Attorney General. A fresh trial has been ordered. • Key Defendants: The case involves the 2006 killing of MP Raviraj and Police Constable Lakshman. The accused include personnel from the military intelligence sector, a sensitive area for national accountability. • Basis for Retrial: • The court cited "shortcomings" in the original special jury trial. • It noted the High Court Judge failed to properly guide the jury on evaluating evidence from a pardoned accomplice witness. • Concerns were raised over the trial's timing, noting that proceedings continued until 11:00 p.m. with a verdict delivered after midnight. • Historical Context: The 2006 shooting in Colombo remains a significant case for human rights and the rule of law in Sri Lanka, drawing long-standing international scrutiny. The Court of Appeal concluded there is sufficient evidence to proceed, returning the matter to the High Court for a new hearing. (Based on reports by Newswire.lk)

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### 🚗 Cabinet Approves Rs. 1 Million Fee for Special Vehicle Numbers

The Cabinet of Ministers has greenlit new regulations to formalize a Rs. 1 million fee for the reservation of high-value "vanity" vehicle registration numbers, aimed at boosting non-tax revenue. • Regulatory Scope: The new provisions cover the reservation of special numbers up to and including 100,000 for all motor vehicles. This excludes motorcycles, motor tricycles, and motor tricycle vans. • Legislative Timeline: This follows a 2023 Gazette (covering up to 50,000 numbers) and a recent amendment in January 2026. The regulations now await final parliamentary approval. • Economic Impact: The move targets the luxury vehicle segment to generate additional government income, leveraging sustained demand for premium and low-digit plates. • Administration: The Department of Motor Traffic (DMT) will manage the reservation process under the new framework. _Source: Cabinet Spokesman, Dr. Nalinda Jayatissa_ ---

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### 📈 Geopolitics & Leadership: Sri Lanka’s Strategic Vulnerability

The current global shift toward a US-led disruption of China's Belt and Road Initiative (BRI) has placed Sri Lanka in a precarious position. As major powers compete for control over physical "chokepoints," Sri Lanka's geography has once again become its destiny. • Geostrategic Risk: Analysts suggest the US-Israel "decapitation strategy" in the Middle East is a precursor to a larger "pivot to Asia" targeting China. Sri Lanka is identified as a critical "dot on the map" where the balance of power between Washington and Beijing could be tipped. • Economic Dependencies: The President’s decision to involve India and the UAE in the Trincomalee oil tank farm and the Trincomalee-Mannar zone is criticized as "unwise." There are concerns that India's alignment with the US could turn these strategic assets into military targets during a Great Power conflict. • Leadership Deficit: • Diplomatic Stance: Current leadership is under fire for allegedly tilting against Iran in communications with Qatar, failing to maintain "strategic balance" or non-alignment. • Brain Drain: National morale remains low, with reports indicating an 80% emigration rate among State university graduates in 2025. • Happiness Index: Sri Lanka's ranking has seen a "downward spiral," moving from 112th in 2023 to 134th in 2026, making it the unhappiest nation in South Asia. • The Path Forward: Critics argue for a more sophisticated "strategic balance" and the involvement of neutral third parties (e.g., Saudi Arabia or Nigeria) in infrastructure to shield the ICT/BPM and energy sectors from being collateral in global proxy wars. _Note: Summary based on published commentary dated March 26, 2026._

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## 🏛️ Cabinet Acts to Streamline Public Service Efficiency

The Cabinet Sub-Committee, chaired by Prime Minister Dr. Harini Amarasuriya, convened on March 24, 2026, to address operational bottlenecks within the state sector. The meeting focused on ensuring the uninterrupted delivery of essential services to the public while enhancing overall administrative productivity. • Objective: Establishing a framework for the "smooth functioning" of the public service to prevent disruptions in citizen-facing operations. • Strategy: Focused on boosting efficiency and resource management across various government departments to support national economic stability. • Context: The move aligns with broader efforts to optimize the ICT/BPM integration within state processes and improve the ease of doing business in Sri Lanka. _Note: Summary based on provisional reports regarding the sub-committee's latest session._ ---

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🇬🇧 UK Pledges Support for Sri Lanka’s Public Service & Energy Reforms

A high-level discussion between Minister Prof. Chandana Abayaratne and British High Commissioner H.E. Andrew Patrick has outlined key areas of bilateral cooperation for 2026. • Public Service Reform: The UK will provide maximum support for human resource training and development to modernize Sri Lanka’s "outdated" public service structures, tailoring programs to local requirements. • Renewable Energy: Focus on the Puttalam district as a hub for Solar and Wind Farms. Specific fundamental discussions were held regarding the potential for Offshore Wind energy projects to drive green growth. • Governance & Stability: • Commitment to removing legal obstacles for Provincial Council elections. • Recognition of Sri Lanka’s anti-corruption state policy and economic resilience. • Emphasis on peaceful community coexistence in diverse regions. • Climate & Development: The UK reaffirmed its commitment to assisting Sri Lanka with climate change challenges and future development activities, including upcoming diplomatic visits to key districts.

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Opposition Leaders Alert International Bodies Over Security Crisis 📈

• Overall Situation: Seventeen opposition party leaders, including Sajith Premadasa, Ranil Wickremesinghe, and Namal Rajapaksa, have formally petitioned global human rights and legal organizations regarding the "grave deterioration" of law and order in Sri Lanka. • Key Statistics: • Over 60 lives lost to shootings involving sophisticated firearms in 2025. • 9 deaths recorded already in early 2026. • Nationwide court strike held on February 16, 2026, involving over 3,500 attorneys following the daylight murder of a lawyer and his spouse. • Legal & Professional Impact: • The Legal Sector is facing "sustained and formidable challenges" to its independence. • Concerns raised over the "extreme politicization" of the Police Force and the Attorney-General’s office, undermining the criminal justice process. • Professionals warn that the safety of lawyers is critical to constitutional rights, citing the Commonwealth principle: "If the lawyer is not protected, then no one is protected." • Regulatory Concerns: • Leaders highlighted the proposed Anti-Terrorism Law, claiming it infringes on the International Covenant on Civil and Political Rights (ICCPR). • Media Institutions are identified as high-risk targets under the new legislative framework, threatening owners, editors, and field staff. • Call to Action: The statement urges international intervention from bodies like the UN, Amnesty International, and the International Bar Association to preserve democratic institutions and professional safety in Sri Lanka.

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Geopolitical Alert: Diego Garcia Missile Strike & Impact on Sri Lanka 📈

The reported Iranian missile launch targeting the US-UK military base at Diego Garcia marks a systemic shift in Indian Ocean security, signaling that remote strategic hubs are no longer invulnerable "sanctuaries." • Strategic Vulnerability The strike—involving two intermediate-range ballistic missiles—challenges the perception of Diego Garcia as a secure rear platform. This transition from a "secure asset" to a "targetable zone" reshapes the maritime map for energy traffic and global trade. • Economic Risks for Sri Lanka As the Indian Ocean becomes a "strategic transmission belt" for conflict, smaller states face heightened economic pressures: Rising maritime insurance premiums and shipping costs. Hardening of energy markets and potential tourism retreats. Disruption to fisheries and coastal livelihoods due to intensified naval activity. • Diplomatic Neutrality In a move of "small-state realism," the Sri Lankan government recently rejected two key military requests to maintain neutrality: United States: Request for two combat aircraft to land at Mattala Airport. Iran: Request for naval access. • Regional Outlook The erosion of geographic boundaries in modern conflict forces Sri Lanka to navigate a narrowing space for policy maneuver. Neutrality is increasingly viewed not just as a principle, but as a critical tool to protect the national economy from great-power rivalries.

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### 🌍 UN Human Rights Council to Hold Urgent Debate on Gulf Attacks

The UN Human Rights Council will convene an "urgent debate" on Wednesday following a request by Bahrain on behalf of the Gulf Cooperation Council (GCC) and Jordan. • Core Issue: The session addresses recent military aggression launched by Iran against seven nations: Bahrain, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). • Human Rights Impact: The draft resolution focuses on the targeting of civilians and civilian infrastructure, which has reportedly resulted in the loss of innocent lives. • Diplomatic Context: A group of countries will present a formal resolution during the debate to address these security and humanitarian concerns within the region. _Note: This summary is based on provisional statements from the UN Human Rights Council regarding the scheduled debate._ ---

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Cabinet Approves Rs. 1.5 Bn Sanitary Napkin Program for 2026 📈

The Cabinet of Ministers has approved the continuation of the national program to provide sanitary napkins to schoolgirls for the year 2026, aimed at supporting education and menstrual hygiene. • Coverage & Reach: The initiative will benefit approximately 1.05 million schoolgirls above Grade 6 across all Government schools and Government-aided special schools island-wide. • Financial Allocation: Each eligible student will receive two gift certificates valued at Rs. 720 each, totaling Rs. 1,440 per year. Based on the student count, the total state investment is estimated at approximately Rs. 1.51 Billion. • Product Options: Beneficiaries can utilize the vouchers to purchase: 12 packets (8-count) at Rs. 120 per packet; or 8 packets (10-count) at Rs. 180 per packet. • Economic & Social Impact: Proposed by Prime Minister Dr. Harini Amarasuriya, the move aims to reduce the financial burden on households and prevent school absenteeism among adolescent girls, directly supporting human capital development.

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Sri Lanka Secures Fertiliser Stocks Amid Middle East Supply Disruptions 📈

President Anura Kumara Dissanayake has directed the Ministry of Agriculture and private sector CEOs to implement a joint program ensuring an uninterrupted fertiliser supply for the upcoming 2026 Yala season. • Overall Requirements: Approximately 550,000 hectares are slated for paddy cultivation. Total urea demand is estimated at 125,000 MT (83,000 MT for paddy; 42,000 MT for other crops). • Current Stock Position: As of March 17, available urea stocks stood at 68,000 MT. A significant surge in demand was noted this month, with 27,000 MT sold compared to just 11,000 MT in March 2025, driven largely by farmer concerns over potential shortages. • Supply Pipeline: Orders for an additional 77,000 MT of urea have been placed. While 37,000 MT from the Middle East faces uncertainty due to regional conflict, 21,000 MT is confirmed to arrive by early April. • Strategic Interventions: • The President ordered the prioritisation of short-term crops, specifically paddy and vegetables. • Instructions were issued to expedite overdue payments to private importers to ease liquidity. • Long-term plans include improving storage facilities near Colombo for buffer stocks and enhancing credit facilities for imports. _Data based on Presidential Secretariat and Ministry of Agriculture briefings (March 2026)._

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Cabinet Approves Fee-Free QR Payments to Accelerate Digital Economy 📈

The Government of Sri Lanka has greenlit a strategic initiative to waive all transaction fees for QR-based digital payments under Rs. 5,000, aiming to shift the national economy away from cash dominance. • Core Policy: Effective immediately for transactions below Rs. 5,000, no additional fees will be charged to either the sender or the recipient. This aligns with the 2026 Budget proposals to enhance financial transparency. • Current Market Status: Despite the availability of LankaQR across 20+ financial institutions, usage remains low. Data from Q3 2025 shows: • Total Transactions: 274,000 (approx. 90,000 per month). • Total Value: Rs. 1.18 Billion (approx. Rs. 390 Million per month). • Average Transaction Value: Under Rs. 5,000, highlighting its role in small-scale retail. • Economic Impact: The move targets Small Businesses and consumers to foster Financial Inclusion. By making low-value daily transactions "fee-free," the government expects to digitize the informal retail sector, which currently relies heavily on physical cash. • Strategic Goal: Submitted by President Anura Kumara Dissanayake as the Minister of Digital Economy, the program is a national priority to boost economic efficiency and secure, traceable financial ecosystems.

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Market News

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### 📈 Secondary Bond Yields Edge Up Amid Global Oil Pressure

The secondary bond market saw yields rise yesterday, driven by bearish sentiment following a rebound in global oil prices. While participation remained subdued, several block transactions maintained healthy trading volumes. • Bond Market Highlights Yields across key maturities trended upward as Brent crude climbed back above US$ 104 per barrel. 2028 Maturities: Traded between 9.55% and 9.70%. 2029 Maturities: Saw rates ranging from 9.78% to 10.00%. Long-term (2032-2033): Yields reached between 10.68% and 11.00%. Total Transacted Volume (25 March): Rs. 37.60 Bn. • Liquidity & Money Market The market maintained a net liquidity surplus of Rs. 247.29 Bn. The Central Bank drained Rs. 100 Bn via overnight repo at a 7.61% weighted average. Overnight call money and repo rates stood at 7.60% and 7.64% respectively. • Forex Market The Sri Lankan Rupee (LKR) weakened slightly against the US Dollar. Spot USD/LKR: Closed at Rs. 314.30/314.70 (vs. previous Rs. 313.80/314.50). Daily Traded Volume: US$ 39.60 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._

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📉 CSE Slumps 2% as Mideast Tensions Drive Oil Prices Higher

The Colombo stock market snapped a two-day rally yesterday, with Rs. 173 Bn in market value wiped out as global oil prices climbed to US$ 104 per barrel amid escalating Middle East instability. • Market Indices: The All Share Price Index (ASPI) fell by 2.05% (448.91 points) to 21,419.94, while the S&P SL20 dropped 1.61% to 6,035.52. • Trading Volume: Daily turnover stood at Rs. 3.3 Bn, a 36.6% decline compared to the monthly average, with 175.3 million shares traded. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 4.1 Mn. Participation from high-net-worth and retail investors remained average as profit-taking set in. • Sector Impact: The Materials sector led turnover (25%), followed by Capital Goods and Banking (27% combined). Top negative contributors included HNB, MELS, COMB, CTHR, and JKH. • Context: The decline follows a record-breaking two-session recovery where the market regained 48% of losses incurred since the start of the conflict. Uncertainty surrounding US–Iran negotiations remains a key pressure point for the financial and energy-sensitive sectors.

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Gold Prices Steady at US$ 4,503 Amid Mideast Tensions 📈

• Market Status: Spot gold held steady at US$ 4,503.29 per ounce as investors weigh a U.S. 15-point ceasefire proposal against threats of further military escalation. • Economic Context: Safe-haven demand remains cautious. While crude oil surged above US$ 100 a barrel due to the closure of the Strait of Hormuz, rising inflationary pressure is being offset by high interest rates. • Interest Rate Outlook: Markets have pivoted significantly, now pricing in zero rate cuts from the Federal Reserve for 2026, a shift from previous expectations of at least two cuts. • Impact on Sri Lanka: As a net importer of oil and a country sensitive to global gold prices and USD interest rates, the halt in Fed easing and high energy costs may pressure the external sector and cost of living. • Other Precious Metals: - Silver: Down 0.1% to US$ 71.19 - Platinum: Down 0.7% to US$ 1,906.90 - Palladium: Down 1.4% to US$ 1,404 _Data based on Reuters reports as of March 26, 2026._

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📈 Global Markets Rally as Oil Prices Dip on Peace Prospects

World stock markets surged yesterday following reports of a US-led 15-point peace framework for Iran, sparking hopes for a Middle East ceasefire. The easing of geopolitical tensions led to a notable shift in global indices and commodity prices. • Global Equity Performance: Japan’s Nikkei led Asian gains, closing up 2.9%, while Hong Kong’s Hang Seng rose over 1%. European markets showed strong momentum with Germany’s Dax up 1.4%, France’s Cac 40 climbing 1.2%, and London’s FTSE 100 gaining over 1%. US indices remained bullish at the open, with the Dow Jones, Nasdaq, and S&P 500 all trading approximately 1.1% higher. • Commodities and Safe Havens: Oil prices dipped as supply disruption fears eased due to potential diplomacy. Gold, which hit a historic high of over US$ 5,000/oz in January, has seen its rally stall. The metal has fallen by approximately 13% to roughly US$ 4,550/oz, challenging its traditional status as a primary "safe haven" asset during conflict. • Economic Context: The cooling of energy prices and market stabilization provides a favorable backdrop for import-reliant economies like Sri Lanka, particularly concerning energy costs and global trade sentiment.

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📈 CSE Marks Record Rebound as Market Recoups 48% of Conflict Losses

The Sri Lankan stock market extended its recovery for a second consecutive session, setting a new benchmark for single-day point gains. The surge follows easing global oil prices and optimism regarding diplomatic negotiations in the Middle East. • Overall Market Performance The ASPI surged by 3.79% (+797.62 points) to close at 21,868.85, while the S&P SL20 rose 3.81% (+225 points) to 6,134.23. Total market turnover reached Rs. 6.4 Bn with 299.5 million shares traded. • Value Recovery The market gained Rs. 284.1 Bn in value yesterday, bringing the two-day total gain to Rs. 528 Bn. This recoups 48% of the Rs. 1.1 Tn value lost since the onset of the Middle East conflict on Feb 28. • Sector Highlights Food, Beverage & Tobacco: Led turnover (22% share) with the sector index rising 4.20%, driven by Lanka Milk Foods and Melstacorp. Capital Goods & Materials: Contributed a combined 34% to turnover. The Capital Goods sector rose 4.28%, led by Colombo Dockyard. Banking: Commercial Bank and Hatton National Bank were principal contributors to the upward momentum. • Investor Activity High net worth and retail participation remained above average. While domestic sentiment was strongly positive (265 green vs. 16 red counters), foreign investors remained net sellers with a net outflow of Rs. 525 Mn.

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Global Markets Rally as Mideast Ceasefire Hopes Soften Oil Prices 📈

• Market Sentiment: Global equities surged on Wednesday following reports of a U.S. 15-point ceasefire proposal for the conflict with Iran. S&P 500 futures rose 0.9%, while Asian markets in Japan and South Korea gained approximately 2%. • Energy & Commodities: Brent crude futures dropped 6% to US$ 98.30 per barrel, offering slight relief to energy-dependent economies like Sri Lanka. However, prices remain 35% higher since the conflict began, maintaining pressure on Asian buyers of diesel and jet fuel. • Interest Rates & Inflation: Despite the temporary market bounce, central banks in Europe and Australia are still expected to hike rates to combat war-driven inflation. U.S. 10-year Treasury yields eased to 4.34% as investors reacted to the diplomatic headlines. • Currency & Credit: The U.S. Dollar weakened slightly, trading at 158.8 Yen. Concerns are emerging in credit markets, with major asset managers like Ares Management capping withdrawals in private debt funds due to rising financial stress. • Geopolitical Context: While the U.S. seeks a month-long truce, the situation remains "fragile" as military strikes continue and the U.S. prepares to deploy thousands of additional troops to the region.

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📈 Bond Yields Volatile Amid Geopolitical Tensions & Policy Review

Secondary market bond yields experienced a "see-saw" trend yesterday, initially softening on temporary de-escalation in the Middle East before retracing higher due to renewed uncertainty and profit-taking. Market sentiment remains cautious ahead of today’s crucial Monetary Policy Review. • Market Movements: • 15.02.28 maturity traded at 9.50%. • 2029 maturities (June/Sept/Dec) saw intraday lows of 9.75%–9.85% before climbing back to 9.95%. • Long-term yields: 2032 maturity traded between 10.60%–10.85%, while 2033 maturity held at 10.90%. • Monetary Policy & Auctions: • The Central Bank of Sri Lanka (CBSL) is set to announce its 2nd Policy Review for 2026 today (7:30 AM). Rates currently sit at 7.25% (SDFR) and 8.25% (SLFR). • A Treasury Bill auction of Rs. 80 billion is scheduled for today, featuring 91-day (Rs. 20b), 182-day (Rs. 25b), and 364-day (Rs. 35b) bills. The offer is slightly below the maturing volume of Rs. 87.17 billion. • Liquidity & Forex: • Net Liquidity Surplus: Rs. 241.71 billion. • Currency: The LKR saw slight depreciation, with the spot rate closing at Rs. 314.00/314.40 against the USD, compared to the previous close of Rs. 313.00/314.00. • Daily Volume: Secondary market bond/bill transactions totaled Rs. 16.93 billion; Forex volume stood at US$ 71.25 million.

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Global Oil Prices Rebound Amid US-Iran Tensions 📈

Brent crude rose back above US$ 100 per barrel, recovering from a sharp 10% plunge on Monday. The price surged by 4% to reach US$ 104 before stabilizing around US$ 102. Market volatility follows conflicting reports regarding diplomatic talks; while US officials claimed "productive" conversations, Tehran officially rejected these claims as market manipulation. The price fluctuations directly impact Sri Lanka’s energy sector and transportation costs, influencing national inflation and the trade balance as an oil-importing nation. Ongoing geopolitical instability in the Middle East continues to pose risks to the cost of petroleum products and thermal power generation locally.

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CSE Records Historic Single-Day Gain: Rs. 244 Bn Recovered 📈

The Colombo stock market staged a record-breaking recovery yesterday, posting its highest-ever single-day points increase. The rebound follows news of potential de-escalation in the Middle East and a temporary ceasefire regarding Iranian energy facilities. • Overall Market Performance The All Share Price Index (ASPI) surged by 3.47% (+706.26 points) to close at 21,071.23. The S&P SL20 rose by 3.91% (+222.41 points) to 5,909.23. Market capitalization recovered Rs. 244 Bn, regaining 22% of the value lost since late February. Market turnover exceeded Rs. 4.2 Bn with 193.4 million shares traded. • Sector Breakdowns & Key Drivers Capital Goods: Led turnover with a 27% share; sector index gained 4.59% driven by John Keells Holdings and Colombo Dockyard. Banking: Contributed significantly to turnover with the sector index up 4.11%, led by Sampath Bank and Commercial Bank. Food, Beverage & Tobacco: Collectively with banking, accounted for 27% of total turnover. • Investor Sentiment & Participation Market breadth was strongly positive (243 gainers vs. 13 decliners). While retail interest was noted in hospitality and finance (e.g., LOLC Finance), high net-worth investors largely remained on the sidelines. Foreign investors remained net sellers, recording a net outflow of Rs. 614.5 million.

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📈 Colombo Bourse Surges Over 3% in Broad-Based Rally

The Colombo Stock Exchange (CSE) witnessed a significant upswing on Tuesday, March 24, 2026, driven by strong investor sentiment and widespread gains across the board. • Market Performance Overview: The All Share Price Index (ASPI) climbed by 706.26 points (+3.47%) to close at 21,071.23. The S&P SL20 Index, tracking blue-chip stocks, rose by 222.41 points (+3.91%) to settle at 5,909.23. • Market Breath & Sentiment: The rally was exceptionally broad-based, with share prices of 228 companies advancing against only 11 decliners. • Turnover & Investor Activity: Total daily turnover reached Rs. 4.21 Billion. • Domestic Participation: Local investors dominated the session with purchases of Rs. 4.16 Bn and sales of Rs. 3.55 Bn. • Foreign Participation: Foreigners remained net sellers, with purchases totaling Rs. 47 Mn against sales of Rs. 661 Mn. The session reflects a robust recovery in banking, diversified financials, and manufacturing interests, signaling renewed domestic confidence in the national economic trajectory.

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CSE Slumps 1.33% as Middle East Tensions Weigh on Market Sentiment 📉

The Colombo Stock Exchange started the week in red, driven by escalating Middle East conflict concerns and global supply chain disruptions. The market has lost over Rs. 1.1 trillion in value since late February 2026. • Market Indices: The ASPI dropped 1.33% (274.76 points) to close at 20,364.97, while the S&P SL20 fell 1.14% to 5,686.82. • Trading Volume: Market turnover recorded a low US$ 7.28 Mn (Rs. 2.37 Bn) with 96.2 million shares traded. • Sector Performance: The Capital Goods sector led turnover (29%), followed by Banking and Diversified Financials (27%). • Key Decliners: Major negative contributors included JKH, DOCK, RIL, DIAL, and CFIN. Market breadth was heavily negative (209 losers vs. 39 gainers). • Investor Activity: Foreign investors remained net sellers with a net outflow of Rs. 118.1 Mn. High-net-worth and retail participation remained below average due to rising crude oil prices and domestic energy supply uncertainties.

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📈 Asia-Pacific Markets Plunge on US-Iran Energy Ultimatum

Global markets are reeling following US President Donald Trump’s threat to "obliterate" Iran's energy infrastructure if the Strait of Hormuz is not reopened within 48 hours. The escalating conflict has triggered a sharp sell-off across major indices and spiked energy volatility. • Market Performance Overview: Japan’s Nikkei 225: 📉 Down 4.0% South Korea’s KOSPI: 📉 Down 4.5% Hong Kong’s Hang Seng: Down ~2.0% Australia (ASX 200) & NZ (NZX 50): Down 1.6% and 1.3% respectively. • Energy & Commodity Impact: Brent Crude: Surged above US$ 114 per barrel before settling near US$ 112. Oil prices have climbed over 50% since the conflict began on February 28. Analysts warn of a "cascading global energy crisis," with projections suggesting oil could hit US$ 150–200 per barrel if the blockade persists. • Economic Context: The Strait of Hormuz is a critical chokepoint for one-fifth of global oil and gas exports. For Sri Lanka, a sustained spike in global energy prices typically pressures foreign reserves, increases transportation costs, and impacts the manufacturing sector due to higher thermal power costs. • Geopolitical Status: Iran has threatened retaliatory strikes on regional energy and water infrastructure and a total closure of the waterway, which currently only sees limited transit by Chinese, Indian, and Pakistani vessels.

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Awards & Recognitions

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📈 HNB Assurance Achieves Record 256 MDRT Qualifiers in 2025

• HNB Assurance has reached a historic milestone with 256 members of its sales force qualifying for the prestigious Million Dollar Round Table (MDRT) in 2025, marking the highest count in the company’s history. • This represents a 15.3% YoY growth compared to the 222 qualifiers recorded in 2024, driven by advancements in insurance & financial services distribution and AI-powered sales tools. • The 2025 cohort includes high-tier achievements: • 33 Court of the Table (COT) qualifiers. • 08 elite Top of the Table (TOT) qualifiers. • Growth is attributed to a "training-driven strategy" focusing on the Advisor Distribution Channel and Bancassurance partnerships, emphasizing professional standards and ethical, customer-centric financial solutions. • The surge in top-tier qualifiers (COT/TOT) highlights qualitative advancement in Sri Lanka’s life insurance sector, supported by redesigned training architectures and performance roadmaps.

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KOKO Secures Overall Gold at LankaPay Technnovation Awards 2026 📈

Sri Lankan fintech leader KOKO dominated the 2026 LankaPay Technnovation Awards during its debut participation, securing the prestigious Overall Gold Award for Excellence in Digital Payments. The recognition underscores the rapid scaling of the Buy Now, Pay Later (BNPL) sector within the national ICT/BPM and digital commerce landscape. • Major Award Wins Overall Gold: Excellence in Digital Payments. Category Golds: Best Digital Payment App for Retail, Most Popular Digital Payment Solution, and Best Enabler for LankaSign Digital Signatures. • Operational Performance & Growth Transaction Volume: Enabled approximately LKR 4 Billion in transactions during the review period. User Surge: Achieved a massive 846% YoY increase in users and merchants. Market Reach: Currently serves 2 Million users with a network of 6,500 merchants. Digital Integration: Recorded 100,000 registered JustPay users, driving financial inclusivity. • Strategic Outlook Regional Expansion: Having grown from an incubator under Daraz (Ant Group), KOKO is set to become the first homegrown Sri Lankan BNPL brand to enter regional markets later this year. Economic Impact: The platform's growth reflects a shift toward mainstream digital payment adoption, supporting retail and e-commerce sectors through interest-free credit solutions. _Data based on official 2026 award results and company disclosures._

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Ceylinco Life Voted Sri Lanka’s Most Popular Life Insurer for 20th Year 🏆

• Market Leadership: Ceylinco Life secured the ‘Peoples Life Insurance Service Provider of the Year’ at the SLIM Kantar Peoples Awards, marking an unbroken 20-year streak as the nation's most preferred insurer. • Financial Performance (FY2025): • Gross Written Premium (GWP): Rs. 44.18 Bn • Total Income: Rs. 72.43 Bn • Life Fund: Surpassed Rs. 200 Bn • Claims & Benefits Paid: Rs. 31.07 Bn • Sector Context: The company has maintained its position as the market leader in the insurance sector for 22 consecutive years. The award, based on independent nationwide consumer surveys, underscores high brand equity and public trust in financial services. • Key Rankings: Recognized as the "Best Life Insurer in Sri Lanka" by World Finance for 12 years and ranked as the most valuable insurance brand in 2025 by Brand Finance. _Source: Provisional data for FY ending Dec 2025._ 📈

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LOLC Secures "People’s Financial Services Brand" for 10th Consecutive Year 📈

LOLC Holdings PLC has achieved a historic milestone at the SLIM Kantar People’s Awards 2026, winning the top financial services title for a decade straight. The award, determined by independent consumer research, underscores the brand's dominant position in the banking and financial services sector. • Market Leadership: Retained the "People’s Financial Services Brand of the Year" title for 10 years (2017–2026), reflecting sustained brand recall and customer loyalty across Sri Lanka. • Sector Impact: Recognized for its role in financial inclusion, supporting local entrepreneurs, and pioneering digital innovation within the domestic economy. • Global Footprint: While maintaining deep local roots, the Group now operates in 27 countries across four continents, exporting Sri Lankan corporate excellence globally. • Social Responsibility: The award highlights the impact of "Divi Saviya," the country’s largest private sector-led humanitarian initiative, strengthening the brand's connection to the grassroots economy. This decade-long recognition confirms LOLC as a trusted partner for individuals and SMEs, bridging the gap between traditional finance and evolving consumer needs.

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### 📈 Union Assurance Secures Triple Honors at TAGS Awards 2025

Union Assurance PLC, a subsidiary of John Keells Holdings, was recognized for excellence in corporate reporting at the 60th anniversary of the TAGS Awards organized by CA Sri Lanka. The awards highlight the company’s commitment to Transparency, Accountability, Governance, and Sustainability. • Key Accolades (2024 Annual Report): Bronze Award: Insurance Companies sector (Gross Premium > LKR 10 Bn). Certificate of Recognition: Integrated Reporting (linking strategy to value). Certificate of Recognition: Corporate Governance Disclosure. • Financial Footprint (as of Dec 2025): Market Capitalization: Rs. 45.6 Bn. Life Fund: Rs. 92.8 Bn. Workforce: 3,000+ employees across an island-wide network. • Economic Impact: As a major player in the Life Insurance sector, the company’s focus on governance and integrated reporting reflects high standards within the financial services industry, supporting investor confidence in the Colombo Stock Exchange (CSE).

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🏛️ Ceylon Chamber of Commerce Marks 187 Years of Economic Stewardship

The Ceylon Chamber of Commerce celebrates its 187th anniversary on March 25, 2026, reinforcing its role as a cornerstone of Sri Lanka’s private sector and economic policy advocacy. • Legacy & Strategy: Founded in 1839, the Chamber remains focused on "putting Sri Lanka first," navigating shifting global geopolitical dynamics and economic uncertainty to ensure national competitiveness. • Recent Impact: Over the past year, the institution spearheaded public-private stakeholder engagements to facilitate economic recovery, enhance market access, and stabilize the business environment. • Future Focus: Key priorities include building resilient businesses, driving innovation, and deepening Sri Lanka’s integration into global markets to expand opportunities for local enterprises. • Core Functions: The Chamber continues to lead in policy advocacy and providing the necessary framework for SMEs and large corporates to scale within a volatile global landscape.

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HNB’s Damith Pallewatte Named ‘Bank CEO of the Year 2025’ 📈

HNB Managing Director/CEO Damith Pallewatte has been honored by the Global CEO Forum for leadership excellence, following a record-breaking financial year for Sri Lanka’s largest private sector retail bank. • Financial Performance (FY2025): Banking Sector Strength: Bank PAT reached Rs 45.4 Bn, while Group PAT stood at Rs 49.8 Bn. Asset Base: Expanded to Rs 2.39 Tn as of December 2025. Lending & Deposits: Gross loans exceeded Rs 1.5 Tn; deposits crossed Rs 2.0 Tn. • Strategic Focus: Emphasis on MSMEs and financial inclusion via initiatives like Gami Pubuduwa to integrate grassroots businesses into export value chains. Prioritization of digital innovation and risk governance to drive a 5-year growth strategy. Maintained capital and liquidity buffers above regulatory minimums despite aggressive loan book expansion. • Operational Excellence: Achieved ISO 22301:2019 certification for Business Continuity Management. Award recognizes Pallewatte’s role in navigating wholesale banking and risk management since his appointment in 2024.

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Shehara De Silva Named to EY Asia-Pacific Winning Women Class of 2026 📈

• Overview: McLarens Group Managing Director, Shehara De Silva, has been selected as one of 23 female leaders for the 2026 EY Entrepreneurial Winning Women (EWW) Asia-Pacific cohort. • The Program: A bespoke executive initiative by Ernst & Young (EY) designed to scale high-potential, women-led businesses internationally through strategic insights and global networks. The community now connects 1,000+ women across 60+ markets. • Candidate Profile: • Leads the McLarens Group, a diversified conglomerate with 45+ companies spanning shipping, logistics, bunkering, manufacturing, and hospitality. • Academic background from LSE and CASS Business School with international experience in Singapore and Dubai. • Founding President of WISTA Sri Lanka and the first female Chairperson of CASA. • Economic Impact: The selection highlights Sri Lanka's leadership in the maritime & logistics and industrial sectors on a regional stage. De Silva is recognized for driving modernization, system upgrades, and workplace reform within the group. • Strategic Value: Participation provides access to mentorship and global advisors to accelerate growth and build long-term value, reinforcing EY Sri Lanka's commitment to empowering visionary female entrepreneurs. _Source: Based on announcements from EY Sri Lanka/Maldives dated March 23, 2026._

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📈 Deloitte Sri Lanka Tax Leader Charmaine Tillekeratne Named ‘Highly Regarded Women in Tax’ for 2026

• Recognition: Deloitte Sri Lanka and Maldives Partner – Head of Tax, Charmaine Tillekeratne, has been recognized as a Highly Regarded Women in Tax Leader – Asia Pacific for 2026 by the International Tax Review (ITR) World Tax Guide. • Evaluation Criteria: The ranking is based on technical expertise, client feedback, and the ability to navigate complex, high-impact tax matters across multiple jurisdictions. • Sector Impact: Tillekeratne leads the tax practice, advising local and multinational clients on corporate tax, international tax, transfer pricing, and regulatory compliance. Her role is pivotal in helping organizations manage risk and sustainable growth within Sri Lanka's evolving regulatory landscape. • Firm Performance: This individual accolade coincides with Deloitte Sri Lanka’s inclusion in the ITR World Tax 2026 firm rankings, reinforcing its position in the professional services and tax advisory sector. • National Context: The recognition highlights the strength of Sri Lanka’s ICT/BPM and professional services talent on a regional scale, emphasizing leadership excellence and global competitiveness in high-value consulting services.

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Lankadeepa Secures 20th Consecutive SLIM Kantar People’s Newspaper Award 🏆

• Key Achievement: Wijeya Newspapers’ flagship brand, Lankadeepa, was crowned the "People’s Newspaper of the Year" at the SLIM Kantar People’s Awards 2026. • Historic Milestone: This marks the 20th consecutive year the publication has secured this top honor, reinforcing its dominant position in the media and communications sector. • Industry Recognition: The award, based on public heartshare, was accepted by editors Ajantha Kumara Agalakada and Kanchana Dissanayake, alongside COO Janaka Rathnakumara. • Economic Context: The consistent performance of leading print titles highlights the ongoing influence of the publishing and advertising industry within Sri Lanka's domestic consumption market. 📈

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Sri Lankan Icons Nominated for Global Merit Poll 📈

Four Sri Lankan trailblazers have been featured in the Quarticentennial Merited Impacts Gazette (2000-2025), a prestigious global list recognizing 181 icons from a pool of 1.9 million profiles across 195 countries. • Overall Figures & Recognition: The "Impact Hallmarks (IH)" initiative uses a Merited Impact Value (MIV) methodology to identify individuals who have shaped humanity, knowledge, and social resilience over the first quarter of the 21st century. • Sri Lankan Nominees: Peace & Human Rights: Dr. Jehan Perera, recognized for long-term advocacy in inter-ethnic reconciliation. Science & Research: Prof. Chandra Wickramasinghe, cited for pioneering work in astrobiology and the cosmic origins of life. Environment & Marine Science: Dr. Asha de Vos, honored for her research on blue whales and promoting locally-led ocean conservation. Social Development: Dr. A.T. Ariyaratne (Sarvodaya Movement), recognized for empowering rural communities through grassroots action. • Regional Context: South Asian representation remains strong with nominees from India (e.g., Kailash Satyarthi), Pakistan (e.g., Dr. Muhammad Amjad Saqib), and Bangladesh (Prof. Muhammad Yunus). These figures highlight the region's influence in microfinance, healthcare innovation, and humanitarian aid, which are critical pillars for regional social stability. The international opinion poll, themed ‘The Mirror of Rectitude,’ is now open for global validation of these meritorious contributions.

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📈 HNB Crowned Sri Lanka’s Best Retail Bank for 16th Year

HNB PLC secured the "Best Retail Bank in Sri Lanka" title at the TAB Global Excellence in Retail Financial Services Awards 2026 in Shanghai, marking its 16th win. • Customer Base & Digital Adoption The bank serves over 2 million retail customers. Notably, nearly 80% are digitally active, highlighting a significant shift toward digital banking and technology-driven financial services in the banking & finance sector. • Market Leadership HNB maintains its position as the market leader in the leasing industry, retaining the largest market share. • Key Innovations The bank continues to drive financial inclusion and ICT/BPM integration through several "firsts": HNB Accept: A Tap-to-Phone solution for contactless merchant payments. World Elite Metal Mastercard: Sri Lanka’s first premium metal card. Expressway Toll System: Appointed as the exclusive partner for the nation's first card-based toll payment system. Trilingual App: Enhanced accessibility with a mobile banking platform available in Sinhala, Tamil, and English. • Economic Impact The award recognizes HNB’s role in supporting Sri Lanka’s economic progress through digital transformation and diversified retail products, including E-Cashback loans and streamlined credit facilities.

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Product & Service Launches / Business Expansion

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🚀 Standard Chartered & Pointlabs Launch Sri Lanka’s First AI Voice Concierge

Pointlabs Technologies has officially launched 'Anya', the country’s first AI-powered voice concierge platform, developed exclusively for Standard Chartered Priority Banking customers. This marks a significant milestone in the digitalization of the banking & financial services sector. • Key Features: The platform utilizes advanced conversational AI to provide premium clients with real-time assistance for travel, lifestyle recommendations, itinerary management, and seamless bookings. • Strategic Impact: • Digital Transformation: Positions Standard Chartered at the forefront of AI-driven client engagement in Sri Lanka. • Service Excellence: Blends intelligent automation with human-assisted services to enhance the affluent banking experience. • Market Expansion: Supports Pointlabs’ South Asian growth strategy and validates its scalable AI infrastructure for regulated financial institutions. • Technology & Collaboration: The solution was developed by Pointlabs Technologies (operating in UAE and Sri Lanka) and launched on March 18, 2026. It highlights the growing role of ICT/BPM and AI innovation in modernizing Sri Lanka's service economy.

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Prym Intimates Expands Global Footprint with New Vietnam Facility 📈

• Global Expansion: Prym Intimates, a division of the Germany-based William Prym Group, commenced operations at its fourth global manufacturing plant in Hung Yen, Vietnam, on 3 March 2026. • Strategic Footprint: The new facility complements existing operations in Sri Lanka, China, and Indonesia. This expansion is designed to place production "close to the needle point," reducing lead times for global brands. • Sector Impact: Specializing in accessories for the intimate apparel and apparel & textiles sectors, the move strengthens the company’s ability to serve key sourcing regions with increased supply chain flexibility and agility. • Operational Standards: The company utilizes standardized manufacturing platforms across all four countries to ensure consistent quality. This diversification allows the group to mitigate market volatility while remaining cost-competitive for its global partners. • Corporate Context: Led by Divisional Head Vasu Wijegoonawardane, the expansion reinforces Prym’s role as a critical supplier to the global garment industry, leveraging a history dating back to 1530.

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Seylan Bank Accelerates SME Credit Access with 3-Day Decisions 📈

Seylan Bank has streamlined its SME lending process to provide loan decisions within just three working days for facilities below Rs. 25 million, significantly reducing the traditional multi-week waiting period for entrepreneurs. • Efficiency Gains: The 3-day commitment applies to 'Atha Hitha', 'Dinana Aya', and specialized working capital schemes once documentation is submitted. • National Credit Guarantee (NCGIL): In partnership with the Government and ADB, Seylan is supporting MSMEs lacking collateral. Loans from LKR 500k to LKR 25Mn can now be secured with NCGIL guarantees covering up to 67% of the value. • Women’s Entrepreneurship: The LIYA SHAKTHI scheme provides enhanced guarantee coverage of up to 80% specifically for women-led MSMEs. • Sector Focus: The initiative targets growth in manufacturing, tourism, agriculture, IT, and exports to bolster national economic diversification. • Accessibility: Support is channeled through 171 branches and 13 dedicated SME hubs, featuring doorstep assistance for documentation and financial planning. This move aims to improve liquidity and business continuity for the MSME sector, which remains a backbone of employment in Sri Lanka.

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Tantri Trailers and Mercy Education Campus Partner for Industrial Skills Development 📈

• Overview: Tantri Trailers Ltd and Mercy Education Campus signed a strategic MoU on February 12, 2026, to launch over 100 industry-led technical training programs aimed at bridging the skills gap in Sri Lanka’s manufacturing and industrial sectors. • Key Objectives: • Enhance youth employability by aligning vocational education with real-world requirements. • Reduce national reliance on foreign technical labor. • Strengthen national manufacturing capability and industrial productivity. • Strategic Impact: • Focuses on practical, hands-on training to create a "job-ready" workforce. • Supports UN Sustainable Development Goals, specifically Quality Education (SDG 4) and Decent Work and Economic Growth (SDG 8). • Tantri Trailers, with over 30 years in industrial manufacturing, will provide internships and apprenticeships. • Future Outlook: The initiative plans to expand into additional technical fields and replicate this industry-academia model with other institutions to support Sri Lanka’s long-term economic recovery and industrial competitiveness.

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### Cambridge Launches AI-Focused Digital Literacy Framework for Schools 📈

The International Education group at Cambridge University Press & Assessment has announced a major transformation of its Digital Literacy curricula for learners aged 5–14, targeting the rapid rise of Artificial Intelligence. • Core Objective: Moves beyond basic tech usage to foster "digital maturity." The framework equips students with critical thinking to decide why, when, and how to use AI, rather than just consuming it. • Curriculum Scope: Primary and Lower Secondary levels (Ages 5–14). Focuses on human intelligence over "cognitive offloading" to AI. Addresses media literacy, cyberbullying, and the evaluation of AI-sourced information to combat misinformation. • Strategic Impact for ICT/BPM and Education: Skill Development: Prioritizes adaptable, transferable skills crucial for future-ready workforces. Ethics & Authenticity: Emphasis on personal responsibility and ensuring students remain the "primary author" of their work. Implementation: Flexible delivery; can be taught as a standalone subject or integrated across the broader curriculum. • Assessment: No formal testing; progress is measured through formative feedback, discussion, and observation to ensure learners demonstrate true ownership of AI-assisted outputs. This update reflects a global shift in education reforms, aiming to build a pipeline of talent capable of navigating an AI-powered economy responsibly.

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Nestlé Lanka Unveils Rs. 9 Bn Investment to Boost Exports 📈

Nestlé Lanka marks 120 years in Sri Lanka with a Rs. 9 billion investment plan over the next four years, focusing on its Pannala manufacturing facility to scale domestic and export production. • Investment & Growth: The capital injection aims to upgrade factory operations and expand export-oriented lines. Despite economic headwinds, the company targets sustainable annual growth of 3%–5%. • Export Focus & Sector Highlights: A primary focus is scaling coconut milk powder, a high-demand global dairy alternative. Nestlé is currently the leading exporter of this product from Sri Lanka, seeing consistent high single-digit to low double-digit volume growth. • Local Impact & Supply Chain: • Dairy: Procured Rs. 3.5 billion worth of fresh milk in 2025, supporting 7,000 farmers. • Agriculture: Purchases 130 million coconuts annually; supports 5,000 growers via the Coconut Development Plan. • Employment: Employs 800 staff directly with no plans for "right-sizing." Over 90% of products sold locally are manufactured in Sri Lanka. • Sustainability Goals: The company aims to be 100% plastic neutral by 2026 and reach net-zero carbon emissions by 2050. Current initiatives include biomass boilers and shifting logistics to rail. _Summary based on official company disclosures as of March 2026._

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Seylan Bank & DIMO Partner for Fast-Track Vehicle Leasing 📈

Seylan Bank PLC has signed a strategic partnership with DIMO to provide specialized leasing solutions for Tata commercial vehicles, aiming to support Sri Lanka’s recovering logistics and transportation sectors. • Core Offering: Dedicated lease-to-own facilities for both small and large-scale commercial operations. • Efficiency & Speed: Fast-track approvals guaranteed within 24 hours to ensure rapid vehicle deployment for businesses. • Financial Incentives: • 50% concession on leasing processing fees. • Competitive interest rates with doorstep consultancy from leasing specialists. • Insurance benefits included for selected vehicle models. • Strategic Impact: The collaboration leverages Seylan’s islandwide branch network and DIMO’s extensive after-sales support to empower SMEs and entrepreneurs. The initiative focuses on enhancing commercial mobility and operational efficiency as the national economy continues its recovery phase.

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

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

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AIBL Secures Reinsurance Broking Licence for Global Market Access 📈

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

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Financial & Investment News

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📈 SL Unit Trust Industry Hits Rs. 609 Bn AUM in February

Sri Lanka's unit trust sector remained stable in February 2026, recording a 4% YoY growth in Assets Under Management (AUM) despite remaining flat on a month-on-month basis. • Overall Figures: Total AUM reached Rs. 609 Billion, managed across 85 funds by 16 licensed firms. • Sector Shifts: A significant pivot toward equity-related funds saw their value double YoY to Rs. 68 Billion. Conversely, fixed income funds saw a 4.4% YoY decline. • Investor Appetite: There is a notable transition from short-term money market instruments toward medium-to-long-term options, specifically open-ended growth and index/sector funds. • Investor Base: The industry added 2,623 new unit holders in February (up 69.8% YoY). The total investor base now stands at 149,573, reflecting a 26.4% YoY increase. The Unit Trust Association of Sri Lanka (UTASL) attributes this performance to a shift toward balanced allocations and professional fund management, strengthening the financial services landscape and its contribution to national economic growth.

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Janashakthi Ltd. to Raise Rs. 5 Bn via CSE IPO 📈

The Colombo Stock Exchange (CSE) has granted in-principle approval for Janashakthi Ltd. (JXG) to proceed with an Initial Public Offering (IPO), marking a significant move for the diversified holding company. • IPO Structure: Offering of 500 million ordinary voting shares via an Offer for Subscription. • Pricing & Valuation: Shares priced at Rs. 10 each, aiming to raise a total of Rs. 5 billion. • Key Dates: Subscription list is scheduled to open on 9 April 2026. • Group Portfolio: Janashakthi Ltd. serves as the holding entity for prominent subsidiaries including Janashakthi Insurance PLC, First Capital Holdings PLC, and Janashakthi Finance PLC. • Listing Details: The company intends to list on either the Main Board or the Diri Savi Board, pending final compliance with listing requirements. • Advisors: First Capital Advisory Services Ltd. is the Manager and Financial Adviser, with SSP Corporate Services Ltd. as Registrar. The move strengthens the capital base of a key player in Sri Lanka’s insurance, finance, and investment banking sectors, providing investors further exposure to the country's recovering financial services landscape. _Note: Based on provisional CSE approval data._

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Wiyawasayakaya Business Summit Draws 250+ Participants in Galle 📈

The 7th edition of the flagship ‘Wiyawasayakaya’ Business and Investment Summit, organized by Lanka Business TV and DailyFT/Lankadeepa FT, concluded successfully at Radisson Blu, Galle. • Participation & Outreach: Over 250 entrepreneurs, investors, and aspiring business owners attended, marking a strong national appetite for economic literacy and business education. • Strategic Focus: The summit focused on empowering the local SME sector and "everyday Sri Lankans" with practical knowledge to navigate current macroeconomic trends. • Key Sessions & Expert Insights: • Entrepreneurship: Led by Dr. Ranil Sugathadasa and Araliya Group Chairman Dudley Sirisena on strategic growth. • Wealth Management: Specialized sessions by NDB Wealth Management CEO Ruwan Perera. • Financial Regulation: Insights on the national economy provided by the Central Bank of Sri Lanka (CBSL). • Future Outlook: Following the success in Galle, organizers confirmed a nationwide series of summits throughout 2026 to foster financial inclusion and employment across various districts.

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Alliance Finance lists Rs. 2 Bn Social Bonds on India’s NSE IX 📈

• Overall Figures: Alliance Finance Company PLC has obtained a secondary listing for its Rs. 2 Billion Social Bond issue on the National Stock Exchange International Exchange (NSE IX) at GIFT City, India, effective 12 March 2026. • Bond Structure: The issue consists of two tranches: Tranche 1: Rs. 1,273.49 Mn (11.15% interest, maturing Aug 2029) Tranche 2: Rs. 726.51 Mn (11.40% interest, maturing Aug 2030) • Listing Details: The bonds remain denominated in Sri Lankan Rupees. While listed on the NSE IX, they are admitted "without admission to trading," meaning all trading and settlement will continue via the Colombo Stock Exchange (CSE). • Strategic Context: This move marks a significant cross-border listing for a Sri Lankan non-bank financial institution (NBFI), utilizing India's international finance hub to profile its social-impact-focused debt. The bonds are unsecured, senior, and redeemable. • Sector Impact: Strengthens the visibility of Sri Lanka's sustainable finance and capital markets on an international stage, specifically within the banking and finance sector.

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📈 Siyapatha Finance to Raise Rs. 3.75 Bn via Debenture Issue

The Colombo Stock Exchange (CSE) has granted in-principle approval to Siyapatha Finance PLC for the listing of its rated, subordinated, unsecured, and redeemable debentures. This move reflects ongoing activity in the financial services sector to strengthen capital bases. • Issue Details: An initial offering of 20 million five-year debentures, with options to issue an additional 17.5 million units in two tranches if oversubscribed. • Total Value: The total issue size could reach Rs. 3.75 Bn if all tranches are fully exercised. • Interest Rate: Fixed at 11.50% per annum, with an Annual Effective Rate (AER) of 11.50%. • Timeline: The subscription list is scheduled to open on 20 March 2026. • Management: People’s Bank Investment Banking Unit is the designated manager to the issue. This capital raising effort supports the banking and finance industry's role in providing credit to the broader economy.

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### NDB Raises Rs. 16 Bn via Oversubscribed GSS+ Bond Issue 📈

National Development Bank PLC (NDB) has successfully closed its Basel III compliant Green, Social, and Sustainability (GSS+) Bond issue after receiving applications exceeding the total offered volume. • Total Capital Raised: The issue was oversubscribed, surpassing the initial Rs. 12 Bn offering and the additional Rs. 4 Bn greenshoe option, totaling Rs. 16 Bn. • Subscription Details: Applications exceeded 160 million bonds at a par value of Rs. 100 each. • Bond Profile: These are Tier 2, listed, rated, unsecured, and subordinated redeemable bonds designed to strengthen the bank's capital base under Basel III requirements. • Impact: The successful capital raise highlights strong investor confidence in banking & financial services and supports the expansion of sustainable financing in the Sri Lankan market. • Next Steps: Based on provisional data, the final basis of allotment will be notified to the Colombo Stock Exchange (CSE) shortly.

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

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

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

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

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Appointments & Executive Moves

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### JITRCS Appoints Sashiprabha Dharmadasa as CEO to Drive Global Tech Expansion 📈

Just In Time Resourcing & Consultancy Services (JITRCS) has announced the appointment of Sashiprabha Dharmadasa as Chief Executive Officer, effective February 2026, to lead the firm’s next phase of international growth and digital transformation. • Strategic Focus: The leadership transition aims to accelerate ICT/BPM resource augmentation, business consultancy, and emerging technology capability development. The firm is pivoting toward a "Strategy-to-Execution" model to help clients navigate digital scaling and compliance with the Personal Data Protection Act (PDPA). • Leadership Profile: Sashiprabha brings over 20 years of experience in Banking and Finance, risk resilience, and governance. Her background includes: • Former CISO at BoardPAC and Director of Client/Technical Delivery. • Lead Auditor for ISO 27001:2022. • Contributions to national policy development with the Ceylon Chamber of Commerce and World Bank-funded cyber readiness assessments. • Sector & Market Reach: JITRCS provides specialized technology talent to diverse sectors including FinTech, Apparel, Aerospace, and FMCG. • Global Footprint: The company currently exports Sri Lankan technical expertise to markets including the USA, UK, Canada, Australia, New Zealand, Malaysia, and Oman. • National Context: The appointment underscores the continued maturity of Sri Lanka's ICT/BPM sector as a critical driver of GDP growth through high-value service exports and global delivery models.

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Sarrah Sammoon Appointed IMC Field Officer for Sri Lanka 📈

The Investment Migration Council (IMC), based in Switzerland, has appointed Sarrah Sammoon as the Field Officer for Sri Lanka, marking a strategic step in aligning the nation with global investment migration standards. • Strategic Alignment: The role focuses on bridging the gap between local implementation and international benchmarks for compliance, due diligence, and investor protection. • Policy Context: The appointment comes as Sri Lanka evaluates reforms to its immigration and investor visa frameworks, aiming to streamline long-term residency pathways. • Expertise: Sammoon, the CEO of Magellan Champlain with over 30 years in global mobility, was the first Sri Lankan to receive the Certification in Investment Migration in August 2025. • Economic Impact: By adopting IMC’s ethical and transparent frameworks, Sri Lanka aims to improve institutional credibility and compete more effectively for mobile capital and global talent. This institutional role is expected to provide a direct interface with global standard-setters, ensuring that Sri Lanka’s residency-by-investment programs are credible and globally benchmarked.

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📈 LAUGFS Gas PLC Announces Key Board Appointments

LAUGFS Gas PLC has officially appointed three new Non-Independent Directors to its Board, signaling a strategic focus on leadership transformation and operational growth within Sri Lanka’s energy sector. • New Board Appointees: Dhanusha Muthukumarana (also appointed to LAUGFS Power PLC) Dr. Niroshan J. Pieries Eng. Nalinda Kurukulasooriya • Strategic Expertise: The new directors bring over 20-25 years of experience each across critical sectors including banking & finance, ICT/BPM, logistics, and manufacturing. This diversification of expertise is aimed at driving innovation-led growth and performance optimization for the Group. • Key Highlights: Technology & Innovation: Dhanusha Muthukumarana, a member of the Forbes Technology Council, brings global experience in intelligent automation and digital transformation, essential for modernizing utility operations. Regional Expansion: Dr. Pieries previously led the expansion of LAUGFS Lubricants into Bangladesh and the Maldives, highlighting the Group’s focus on international market presence. Crisis Management: Eng. Kurukulasooriya is credited with stabilizing LPG operations during Sri Lanka’s recent economic crisis, ensuring supply continuity and improved financial performance. • Economic Context: These appointments come as LAUGFS Gas seeks to strengthen its market position and enhance stakeholder value amidst a recovering economy, leveraging high-level expertise in engineering and strategic management.

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Prof. Dewasiri Jayantha Appointed to PMF Finance Board 📈

PMF Finance PLC has officially appointed its CEO, Prof. Dewasiri Jayantha, to the Board as an Executive Director, effective March 2026. This move integrates high-level academic expertise with corporate governance within the finance sector. • Key Appointment Details Prof. Jayantha was appointed CEO on 3 March 2026. His elevation to the Board marks a strategic blend of his 17 years of senior industry experience and scholarly leadership. • Professional Profile • Academic Standing: Full Professor of Finance (on merit) at Sabaragamuwa University and PhD holder from the University of Colombo. • Industry Leadership: Honorary President of the Sri Lanka Institute of Marketing (SLIM) and the first South Asian Brand Ambassador for Emerald Publishing, UK. • Certifications: Accredited Fellow Chartered Manager (FCMI CMgr) and Fellow Member of the Chartered Institute of Marketing (UK). • Economic Impact The appointment underscores a trend of increasing "practitioner-academic" roles in Sri Lanka’s banking and financial services industry, potentially strengthening methodological rigor and research-driven growth within the firm. _Source: PMF Finance Corporate Announcement (Provisional)_

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📈 Standard Chartered Sri Lanka Appoints Vindya Hettige as Head of Legal

Standard Chartered has announced the appointment of Vindya Hettige as Head of Legal and Head of Legal Client Coverage, effective 20 March 2026. • Role & Governance: Hettige joins the Country Management Team to provide strategic legal advice, manage legal risk, and ensure compliance with regulatory and ethical standards across the bank's banking & finance operations in Sri Lanka. • Professional Background: An Attorney-at-Law with over 18 years of experience, she joined Standard Chartered in 2014. Her career includes a significant tenure in the banking & finance team at Nithya Partners. • Academic Credentials: She holds a Master of Laws (LLM) in Banking and Finance from the University of London and a Bachelor of Laws (LLB) from the University of Colombo. • Strategic Impact: CEO Bingumal Thewarathanthri noted the appointment reflects the bank’s commitment to internal talent development and building a robust leadership pipeline within the financial services sector to drive sustainable growth.

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### Legacy Profile: Anthony A. Page and the Evolution of CT Holdings 📈

A tribute to the late Anthony A. Page (affectionately known as "Baba") highlights his foundational role in shaping some of Sri Lanka’s most prominent listed entities. • Corporate Leadership: Page was a visionary architect behind the modern structures of CT Holdings, Cargills (Ceylon) PLC, and CT Land. He served as the Chairman of CT Holdings and held key directorships within the Lanka Ceramics Group. • Industry Impact: • Cinema & Media: Joined Ceylon Theatres in 1971, becoming a "fierce advocate" for the liberalization of the Sri Lankan film industry. • Financial Services: Acted as the primary guide and architect in the formation of CT Smith in 1992, significantly influencing the local capital markets. • Operational Excellence: Credited with transforming traditional management into professionalized systems and structures that remain the "backbone" of the CT Holdings Group today. • Mentorship & Diversification: Beyond corporate strategy, his legacy is noted for mentoring future business leaders and maintaining a commitment to the "greater good" of the community through diverse business interests spanning retail, real estate, and manufacturing. _Note: Summary based on commemorative data published March 2026._ ---

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Rohana Bandara Weerakoon Assumes Duties as Acting GM/CEO of NSB 📈

The National Savings Bank (NSB) has officially appointed veteran banker Rohana Bandara Weerakoon as its Acting General Manager and Chief Executive Officer. • Executive Profile: Weerakoon brings over 28 years of experience in the Banking and Financial Sector. He previously served as the Deputy General Manager (HRD) and has been with NSB since 1998. • Expertise & Background: His extensive career spans treasury operations, primary dealer functions, branch operations, and human resource development. He holds a B.Com from the University of Kelaniya and an MBA from PIM (University of Sri Jayewardenepura). • Strategic Context: Chairman Dr. Harsha Cabral highlighted the appointment as critical for navigating the bank through current "troubled waters" and global economic challenges. The transition aims to ensure the long-term growth and stability of the state-owned savings giant. • Institutional Leadership: Weerakoon is a Fellow Member of the Association of Professional Bankers (APB) and previously served as President of the Executive Officers’ Association, indicating strong internal support during this leadership transition.

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### Atarah Capital Appoints Former CBSL Deputy Governor to Board 📈

Atarah Capital, a licensed corporate finance advisory firm, has appointed retired Central Bank of Sri Lanka (CBSL) Deputy Governor Janaka Karunaratne as a Non-Executive Independent Director. This marks his first private sector role following a 34-year career at the CBSL. • Key Profile Highlights: Karunaratne previously oversaw the Financial System Stability cluster at the CBSL. His expertise spans the regulation of banking and non-bank financial institutions, public debt, and currency management. He has also served as Chairman of the Credit Information Bureau of Sri Lanka (CRIB) and the Institute of Bankers. • Strategic Impact: His appointment is expected to bolster Atarah’s strategic planning and operational performance. The firm is a key player in the capital markets, having listed six companies on the Colombo Stock Exchange (CSE) since 2021, including the first women-owned enterprise from the Northern Province (Maharaja Foods PLC). • Service Portfolio: Atarah Capital specializes in IPOs, mergers & acquisitions (M&A), private equity structuring, and business valuations. The firm has recently managed three listed company takeovers and multiple private placements.

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## SLFFA Announces New Leadership Transition to Drive Logistics Growth 🚢

The Sri Lanka Logistics and Freight Forwarders Association (SLFFA) has announced a strategic leadership transition effective March 6, 2026, to navigate evolving global supply chains and bolster Sri Lanka’s position as a regional hub. • New Appointments: Chairman: Andre Fernando (formerly Vice Chairman), bringing over 30 years of industry experience. Vice Chairman: Shavindra Dias (formerly Treasurer). Treasurer: Priyan Seilman (formerly Executive Committee Member). • Strategic Context: The transition follows the departure of Channa Gunawardena, credited with reinforcing the association's role in the trade and logistics ecosystem. The new team takes office as the sector faces rapid digitalization and geopolitical shifts. • Key Industry Priorities: Modernization: Focus on digital transformation of logistics processes and trade facilitation. Competitiveness: Enhancing Colombo’s status as a logistics hub along the East-West maritime route. Collaboration: Strengthening policy engagement between the private sector and government stakeholders to support exporters and importers. The move signals a commitment to institutional continuity and professional representation for the freight forwarding and supply chain community. _Source: SLFFA Official Announcement (March 16, 2026)_

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UTASL Appoints New Board Amid Significant Sector Growth 📈

The Unit Trust Association of Sri Lanka (UTASL) has announced its new Board of Directors for 2026–2027, with Jeevan Sukumaran (SENFIN Asset Management) appointed as President. The leadership transition occurs during a period of robust expansion for the Unit Trust industry. • Key Performance Indicators: Investor base has more than doubled over the last five years. Assets Under Management (AUM) have seen substantial growth, reflecting a shift from traditional savings to investment-aware behavior. • New Leadership Team: President: Jeevan Sukumaran (SENFIN Asset Management) Vice President: Kavin Karunamoorthy (First Capital Wealth Management) Secretary: Asanka Herath (Lynear Wealth Management) Treasurer: Wishan Perera (Softlogic Invest) • Strategic Priorities: Retail Participation: Focus on broadening the investor base beyond urban centers through financial literacy and education. Product Innovation: Plans to introduce Index funds, Exchange-traded funds (ETFs), and Shariah-compliant funds to diversify the market. Digital Transformation: Enhancing digital platforms to improve accessibility and transparency for capital market participants. Taxation & Regulation: Prioritizing clarity on tax treatment for unit holders and maintaining high governance standards under SEC oversight. The board aims to transition Sri Lanka toward an investment-aware society, ensuring growth is inclusive and aligned with national financial development objectives. Based on UTASL announcement dated March 13, 2026.

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Agility Innovation Names Vasabha Bulathsinhala as Group CEO 📈

Agility Innovation Group has announced the appointment of Vasabha Bulathsinhala as its new Group Chief Executive Officer, completing a planned leadership transition to drive the conglomerate's next growth phase. • Leadership Transition: Bulathsinhala, who joined as COO in January 2025 after two decades with a global Fortune 500 telco, succeeds the previous leadership under Group Chairman Ajit Gunewardene. • Sector Impact: The Group is a major player in Sri Lanka’s ICT/BPM and digitisation landscape, boasting a 30-year legacy and a workforce of over 600 professionals. • Strategic Portfolio: The move strengthens the Group's focus on high-growth areas including: Cybersecurity & Cloud: Led by pioneers KBSL and N-able. Software & Blockchain: Driven by Just In Time (JIT) and Coding Legends. Telecom & Connectivity: Managed via Lankacom, the first private operator in the country. AI & Analytics: Integrated across EBI and GIS Solutions. • Economic Context: The transition aligns with the national "Digital Sri Lanka" initiative, positioning the Group to lead in digital transformation, financial inclusion, and tech-driven economic reforms. • Operational Focus: Under the "One Agility" concept, the new CEO aims to unify diverse capabilities in data analytics and software development to provide end-to-end solutions for both local and global markets.

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New Leadership for COYLE: Suren Chandraratna Appointed Chairman 📈

The Chamber of Lankan Entrepreneurs (COYLE) held its high-profile Annual General Meeting on March 10, 2026, attended by President Anura Kumara Dissanayake and key diplomatic and private sector figures. • New Leadership Team: Suren Chandraratna – Chairman (Founder of Sirocco) Dan de Silva – Senior Vice Chairman Mihiru Perera – Vice Chairman • Key Highlights & Vision: Theme: ‘Bridging Generations, Building Futures,’ focusing on mentoring the next generation of Sri Lankan entrepreneurs. Sector Focus: Chandraratna brings expertise from advanced air management, logistical infrastructure, and international spice trading. National Impact: The chamber aims to support national economic recovery, government initiatives in trade, and global investment. • Strategic Goals: Strengthening international ties with global trade bodies and diplomatic missions. Fostering a globally competitive ecosystem for home-grown SMEs and large enterprises. Leveraging COYLE’s network to advocate for policies that enable innovation and sustainable business growth.

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Sustainability, ESG & Corporate Responsibility

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Sri Lanka’s Gender Equity: Benchmarking Workplace Rights 📈

• Overall Participation: Female labor force participation in Sri Lanka stands at 34%, trailing regional peers like Bangladesh (38%) and Vietnam (over 70%). A majority of women remain in the informal sector or unpaid caregiving without social protections. • Corporate Leadership: Despite a history of female political leadership, women hold only 13.4% of board seats in listed companies and 10% of Parliamentary seats. In contrast, Malaysia and Indonesia have accelerated representation through formal gender quotas and diversity mandates. • Legal & Protection Gaps: • Harassment: While legal provisions exist, implementation is weak compared to India’s mandatory internal complaints committees for workplaces with 10+ employees. • Social Safety: Sri Lanka lags behind India and Bangladesh in providing welfare boards, pensions, and health insurance for women in the informal economy. • Strategic Recommendations: To align with regional best practices, the report suggests introducing affirmative action, extending legal protections to informal workers, and institutionalizing gender-disaggregated data tracking to drive inclusive economic growth.

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Sri Lanka Faces "Grey Tsunami" Retirement Crisis 📉

Ceylinco Life has issued an urgent alert regarding Sri Lanka’s rapidly aging population and a significant "retirement readiness gap" as the country nears a major demographic shift. • Demographic Shift: By 2042 (just 16 years away), 1 in 4 Sri Lankans will be over the age of 60. With average life expectancy at 77-78 years, retirees must fund approximately 15-18 years of post-work life. • Financial Shortfall: The Employees’ Provident Fund (EPF) remains the primary savings vehicle for the private sector. In 2024, the EPF paid out Rs. 230 Bn in total benefits. However, average balances remain modest; when spread over 15+ years, settlements often translate to only a few thousand rupees per month. • At-Risk Groups: Informal Sector: Self-employed and gig workers often have no structured retirement savings. Women: Face wider gaps due to career breaks for caregiving and longer life expectancy. Sandwich Generation: Those in their 40s balancing children’s education and aging parents, often neglecting their own pensions. Professional Class: High lifestyle costs and deferred planning create "insidious" risks for high-earners. • The Response: Ceylinco Life is launching "Retirement Ready" in 2026, a national awareness campaign to address low financial literacy and the erosion of traditional family safety nets due to urbanization and migration.

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MAS Holdings Expands Sustainability Roadmap with New bluesign® Partnerships 📈

Sri Lanka’s largest apparel manufacturer, MAS Holdings, has announced a significant advancement in its "Plan for Change 2030" sustainability strategy. • Key Milestone: Two major subsidiaries—Texo (Pvt) Ltd (cotton fabric processing) and Noyon Lanka (knitted lace)—have officially become bluesign® System Partners. • Strategic Impact: With these additions, 75% of MAS’s wet processing facilities now align with the highest global standards for responsible chemical management. • Operational Standards: Adoption of Input Stream Management to ensure only approved chemical products are used. Utilization of digital platforms (CUBE, FINDER, and GUIDE) for enhanced traceability and performance measurement. Rigorous independent assessments across knitting, dyeing, finishing, and laminating processes. • Economic Context: This move strengthens the local supply chain for the apparel & textiles sector, reinforcing Sri Lanka's position as a hub for responsible and future-ready manufacturing for global brand partners. This follows the 2023 milestone where MAS Fabrics – Intimo became Asia’s first seamless textile mill to achieve this status, signaling a scaled commitment to reducing environmental impact across the textile supply chain.

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ComBank Renews Historic De Soysa Maternity Ward for International Women’s Day 📈

• Project Overview Commercial Bank of Ceylon has officially commenced the renovation of Ward No. 03 at the De Soysa Hospital for Women. The initiative, timed with International Women’s Month, aims to enhance maternal healthcare infrastructure and patient safety at Sri Lanka's oldest maternity hospital. • Hospital Impact & Stats Founded in 1879, De Soysa Hospital is a cornerstone of the healthcare sector, recording 25,000 admissions and 6,000–8,000 deliveries annually. Ward No. 03 specifically handles: 2,500 – 3,000 deliveries per year. 4,000 – 5,000 patient admissions per year. • CSR & Sector Context The project is managed by the Commercial Bank Social Responsibility Trust, which has supported over 100 government hospitals. This focus on infrastructure development complements the bank's broader ESG goals, including its status as Sri Lanka’s first 100% carbon-neutral bank. • Institutional Profile Commercial Bank remains the largest private sector lender in Sri Lanka. First Sri Lankan bank to exceed a market capitalization of US$ 1 Bn. Operates 272 branches locally with a significant footprint in Bangladesh, Myanmar, Maldives, and the UAE. _Note: Based on official bank announcement as of March 24, 2026._

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⚡ UK-Sri Lanka Partnership: Strategic Transition to Electric Bus Fleet

The UK’s Green Cities Infrastructure and Energy Program, in collaboration with the Ministry of Transport and UNDP, has initiated a technical framework to transition Sri Lanka’s public transport to electric buses, moving beyond climate goals toward national economic resilience. • Strategic Rationale: The shift aims to reduce heavy dependency on imported petroleum, mitigating exposure to global supply disruptions and recurring domestic fuel rationing (QR-based systems). • Key Focus Areas: Infrastructure & Energy: Assessing grid reliability, distribution capacity, and tariff structures to ensure the power sector can support large-scale fleet charging. Regulatory Reform: Developing a practical Action Plan for governance structures and institutional mandates to allow effective scaling. Inclusive Transport: Addressing public transport service quality, specifically focusing on safety for women, accessibility for the disabled, and affordability. • Economic Impact: Viewed as a strategic investment in stability, the program links transport and energy planning to foster long-term fiscal resilience by reducing foreign exchange outflows for fuel. • Implementation Status: Based on recent workshop outcomes, the transition is moving from ambition to a formal Action Plan grounded in local stakeholder engagement. _Source: British High Commission / Provisional Program Data_

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Headline: Moving from Intent to Infrastructure: Unlocking Women’s Economic Potential 📈

A recent policy analysis emphasizes that increasing female labor force participation is an economic necessity for Sri Lanka’s productivity and long-term growth. While awareness has grown, structural reforms remain critical to move beyond symbolic gestures. • Core Economic Impact The transition of women into senior leadership is no longer a supply issue but a system design challenge. Successful national platforms have already proven that women can account for a majority of board representation when institutional action is taken. • Key Structural Barriers Care Infrastructure: The lack of affordable, high-quality childcare and elder care is a primary constraint. Care must be treated as "economic infrastructure" to ensure workforce continuity. Transition Points: Biases regarding compensation and "perceived availability" often surface as women reach marriageable age or take on caregiving roles. Policy Gap: While paternity leave policies exist, low uptake due to fear of career repercussions highlights a disconnect between policy availability and usability. • Strategic Recommendations Labor Law Reform: Regularizing part-time work and extending benefits like gratuity are essential for an inclusive workforce. Safe Employment: Prioritizing dignified local jobs for women is key to reducing unsafe migration and protecting livelihoods in the ICT/BPM and other high-growth sectors. Engagement: Comprehensive organizational training and engaging men as partners are vital to sustaining behavioral change. _Note: Analysis based on current policy perspectives and provisional labor market observations._ ---

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## SLID-KPMG: Audit Committees Move Beyond ESG Compliance 📈

The 32nd SLID-KPMG Audit Committee Forum highlighted a shift in corporate governance, urging audit committees to treat sustainability reporting with the same rigor as financial data under new SLFRS S1 & S2 standards. • Strategic Oversight The board's role is evolving from mere disclosure to embedding ESG into core strategy. Diversified conglomerates like Aitken Spence PLC are now linking sustainability risks and opportunities directly to investment and divestment decisions, such as transitions from thermal power to waste-to-energy. • Data Governance & Accountability For large-scale operations like the apparel & textiles giant MAS Holdings, credible ESG reporting now requires enterprise-wide data architecture. Key focuses include: • Standardizing definitions and automating validation at source. • Moving from periodic validation to continuous controls monitoring. • Linking ESG performance metrics directly to individual KPIs to ensure accountability. • Implementation & Sustainable Finance Sector Resilience: Companies like Lion Brewery PLC are investing in wastewater treatment and flood protection to mitigate climate-related operational risks. Access to Capital: Financial institutions like DFCC PLC are pioneering green and blue bonds. However, concerns remain regarding the ability of SMEs to meet the stringent compliance demands of EU and other advanced markets to access preferential sustainable capital. • Key Takeaway Compliance with SLFRS S1/S2 must begin at the strategy stage, not the reporting stage. Audit-ready data is now central to safeguarding reputation and long-term value in the Sri Lankan economy.

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📈 She Radiates 2026: Female Leaders Push for Economic Inclusion

The inaugural "She Radiates 2026" forum, organized by WeOptimize, highlighted the critical need for increased female participation in Sri Lanka’s formal economy and corporate leadership. • Workforce Statistics (Provisional): Current female labor force participation: ~30%. Female representation on Colombo Stock Exchange (CSE) listed boards: 10%. • Sector Focus & Leadership Insights: Apparel & Textiles: Rajitha Jayasuriya (Chairperson, SLAEA) emphasized purpose-driven leadership and collective success as vital for the industry’s growth. Hospitality & Tourism: Nayantara Fonseka (CEO, NyneHotels) and Sheanna Gardiner (Director, Galle Face Hotel) advocated for resilience and emotional intelligence in navigating sector challenges. Legal & Corporate Governance: Panelists urged women to build deep expertise to dismantle masculine norms in courtrooms and structural barriers in boardrooms. SMEs & Personal Branding: Sessions by GFlock, Radi, and Ramani Fernando linked personal branding and confidence to professional credibility and individual success. • Strategic Goals: The event aims to build a mentorship-driven network to help women achieve their full potential, emphasizing that women can act as "anchors" to support the broader economy through workforce diversification and leadership.

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INSEE Ecocycle Drives Sri Lanka’s Circular Economy Transition 📈

INSEE Ecocycle has launched a comprehensive series of high-level engagements in March 2026, aimed at establishing Sri Lanka as a regional leader in sustainable manufacturing and resource efficiency. • Circularity Summit 2026: Held on March 19 at Cinnamon Life, convening 200+ stakeholders from industry and academia. Key focus areas included waste reduction strategies, material recovery, and global best practices in energy efficiency. • Future 360 CEO Forum: A premier gathering of 300+ senior corporate leaders and policymakers. The forum focused on integrating sustainability into industrial operations to maintain global competitiveness while exploring leadership visions for circular economy adoption. • Academic & Youth Integration: • The ICRES online conference (March 14) shared global research on regulatory frameworks and technological innovation. • The Circularity Challenge (Season 2) engaged students from Colombo, Peradeniya, and Sri Jayewardenepura universities, providing mentorship for commercial-scale sustainable business models. • Strategic Impact: These initiatives connect research, policy, and youth innovation to reduce industrial emissions and transition the national economy toward cleaner production systems. This framework supports Sri Lanka’s long-term goal of becoming an investment-ready, future-oriented manufacturing hub.

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📈 CDB Empowers Women Entrepreneurs via CAN Market Partnership

Citizens Development Business Finance PLC (CDB) has reinforced its commitment to the SME sector by partnering with The Creative Isle Ltd. for the International Women’s Day edition of the CAN Market. The collaboration aligns with the 2026 IWD theme ‘Give to Gain’ and focuses on the Wings Ecosystem to drive financial inclusion. • Strategic Objectives: The partnership aims to provide greater visibility, financial accessibility, and digital enablement for women-led businesses and eco-conscious local brands. • Digital Integration: CDB facilitated seamless transactions using QR payments and provided exclusive benefits via the CDB SELF platform, promoting the adoption of fintech solutions among micro and small enterprises. • Event Highlights: Held at Arcade Independence Square, the initiative showcased a diverse collective of artisans and creative brands, connecting local entrepreneurs with conscious consumers to foster sustainable growth. • Economic Impact: By strengthening the Wings Ecosystem, CDB is focusing on inclusive growth and resource allocation for women-led enterprises, which are vital for community progress and employment diversification.

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Headline: War-Driven Environmental Crises Threaten Sri Lankan Waters 📈

• Local Impact: Sri Lanka's Exclusive Economic Zone (EEZ) is under threat following the sinking of an Iranian vessel off the southern coast. The Marine Environment Protection Authority (MEPA) is currently monitoring for oil spills and debris that have already begun washing ashore. • Regional Risks: Escalating Middle East conflicts involving oil refineries and industrial areas have triggered warnings of "black acid rain" and heavy metal contamination. A single major oil spill in the Strait of Hormuz is projected to cause irreparable damage to marine habitats, affecting regional biodiversity and food security. • Global Context: • Gaza: Over 500,000 tonnes of $CO_2$ generated in the first 120 days of conflict. • Sudan: Widespread deforestation and collapse of sanitation systems. • Iran: Aerial bombardments have compromised soil fertility and groundwater through toxic acidic particles. • Economic Vulnerability: As an island nation, Sri Lanka is disproportionately affected by marine pollution from non-party conflicts. Experts urge authorities to document damages to seek international reparations for environmental remediation and cleanup costs. _Note: Summary based on provisional reports and MEPA monitoring data._

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Sofia Colombo Becomes Sri Lanka’s First GSTC-Certified Hotel 📈

• Sofia Colombo has achieved the Global Sustainable Tourism Council (GSTC) accreditation, marking it as the first hotel in Sri Lanka to receive this international sustainability milestone. • The certification was conducted by Control Union, an entity accredited by GSTC since 2016, following rigorous audits against standards for environmental impact, social responsibility, and economic viability. • This achievement is a strategic move to align with future global demand, specifically targeting the EU market, which is expected to prioritize sustainable-certified hotels for business starting in 2027. • The move enhances the hotel’s long-term commercial potential and competitive edge within the tourism and hospitality sector, reinforcing Sri Lanka’s position as a responsible travel destination.

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**Politics & Government Impact** ### **Reasoning:** 1. **Main Subject:** The primary focus is a high-level diplomatic dialogue between two heads of state: Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake. 2. **Key Elements:** The discussion centers on **geopolitical events** (the Middle East crisis) and their impact on regional stability and global energy security. 3. **Actions & Impacts:** The news details government-to-government cooperation, reaffirmed commitments between nations, and the management of shared geopolitical risks. 4. **Category Fit:** While there is a strong focus on energy, the context is not about a specific industry development (Category 4) or a corporate venture (Category 2). Instead, it describes how **geopolitical instability** is driving **policy shifts** and strategic state partnerships. This aligns most closely with **Politics & Government Impact**, which covers geopolitical events affecting markets and supply chains.

Startups & Entrepreneurship

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Cabinet Expands Concessional Loans to Empower 50,000 Youth Entrepreneurs 📈

The Sri Lankan Cabinet has approved the expansion of a low-interest loan scheme designed to foster entrepreneurship and stimulate rural economic activity. • Overall Target: The initiative aligns with the Government’s policy to create 50,000 new entrepreneurs over a five-year period. • Funding & Scalability: Following an initial Rs. 500 million allocation in 2025, an additional Rs. 750 million has been allocated in the 2026 Budget to scale the program. • Sector Focus: Support is specifically targeted at young entrepreneurs within the agriculture, livestock, and industrial sectors to enhance value addition and employment. • Concessional Terms: Loans will be disbursed at a highly competitive annual interest rate of 4%. • Participating Banks: The scheme will be facilitated through the Bank of Ceylon (BOC), People’s Bank, and the Regional Development Bank (RDB). This move aims to drive inclusive economic growth by providing affordable finance to youth-led ventures, particularly in rural regions.

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The Power of Personal Branding in Modern Entrepreneurship 📈

In an increasingly competitive market, personal branding has emerged as a critical differentiator for entrepreneurs, particularly within the Sri Lankan startup and SME sectors. • The Trust Factor: Modern consumers are increasingly skeptical of traditional marketing. Data suggests that customers "buy" the person behind the product first. Authentic personal branding builds the trust and emotional connection necessary to drive purchasing decisions. • Strategic Differentiation: While products and features can be easily replicated, a personal brand—comprising an entrepreneur's unique values, story, and communication style—is unique. This provides a low-cost, high-impact alternative to expensive advertising, benefiting young business owners with limited funding. • Long-term Resilience: A strong personal brand ensures success beyond a single venture. Loyal audiences often follow an entrepreneur into new business cycles, providing a safety net even if a specific business fails. • Digital Growth: Social media platforms like Instagram and TikTok have become primary drivers for small businesses. Transparency in the "making-of" process and direct engagement foster high levels of customer loyalty. • Sri Lankan Context: With rising technology access, there is significant potential for Sri Lankan youth to leverage personal branding to scale creativity and ICT-related services toward regional and international markets. _Key Drivers:_ Authenticity and consistency are identified as the two pillars of a sustainable personal brand.

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GoviLab AgriTech Accelerator Concludes Second Cohort 📈

The GoviLab AgriTech Accelerator has successfully completed its second cohort, marking a significant milestone in Sri Lanka’s Inclusive Digital Agriculture Transformation (IDAT) strategy. The program, partnered by Hatch, Sarvodaya, and the Gates Foundation, aims to modernize a sector that employs 30% of the population but contributes less than 8% to GDP. • Program Impact & Scale Supported 20 agri-tech startups across two cohorts (2024–2026). Cohort 2 featured 10 startups, including 4 female-led ventures. Focuses on smallholder farmers to improve productivity, sustainability, and digital adoption. • Strategic Economic Goals Supports the national target to grow the digital economy from US$ 3.5 Bn to US$ 15 Bn by 2030. Aims to expand the technology industry to US$ 5 Bn within the same period. Leverages CROPIX, a national digital platform launched in early 2026, featuring 150+ APIs for agricultural intelligence. • Sectoral Innovations Solutions include drone technology for paddy and coconut cultivation, precision agriculture for greenhouses, and locally manufactured machinery. Addressed critical issues like human-wildlife conflict and post-harvest wastage to ensure national food security. • Key Partnerships Funded by the Gates Foundation with technical steering from ICTA and the Ministry of Agriculture. Sarvodaya provides "last-mile" connectivity to grassroots farmer bases, while Hatch serves as the primary accelerator provider.

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Colombo Hosts 2026 Entrepreneurs’ Organisation (EO) Regional Presidents’ Meeting 📈

The Entrepreneurs’ Organisation (EO) concluded its four-day regional leadership gathering at Cinnamon Life, Colombo, positioning Sri Lanka as a premier hub for high-value business tourism. • Event Scale & Scope The summit brought together over 300 delegates, including Chapter Presidents and Managers from 79 chapters. Participants represented 34 countries across Europe, South Asia, the Middle East, and Africa. • Economic Impact The meeting provided a direct boost to Colombo’s visitor economy. High-spending delegates and spouses extended stays, leading to full bookings for local hotels, restaurants, and transport providers. • Strategic Significance • MICE Tourism: The event showcased Colombo’s capacity to host large-scale international conferences, critical for service sector growth. • Networking: Focused on the theme "Trust. Grow. Together.", the meeting facilitated cross-border collaboration among founders from a global network of 20,000+ entrepreneurs. • Local Leadership: Hosted by EO Sri Lanka, led by Tarindra Kaluperuma, emphasizing the role of local entrepreneurship in driving regional market alignment.

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SL Launches 'Hyacinthesis' Accelerator to Turn Invasive Water Hyacinth into Export Assets 🌿

The Foundation For A Good Life (TFGL) and Good Life X (GLX) have launched an eight-month market-driven program to transform the invasive water hyacinth into sustainable raw materials for circular innovation and livelihood support. • Economic Potential: The initiative targets the global sustainable homeware and natural fibre market, which is projected to exceed US$ 60 Bn by 2030. Premium retail prices for water hyacinth products currently range from US$ 20 to US$ 80 per unit. • Strategic Impact: By repositioning the plant as a regenerative material, the project mitigates its damage to agriculture, fisheries, and irrigation systems while creating high-value employment in rural artisan communities. • Program Details: Supported by the Lanka Environment Fund, Scott Dunn, and Conservation Collective. Will scale six enterprises in its first cohort, focusing on craft and homeware. Future phases plan to diversify into paper, packaging, fertiliser, and biochar. • Market Access: Participants receive seed financing, technical mentorship, and direct links to retail partners to ensure products meet global demand standards. Based on official launch data for the 2026 program cycle.

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Navigating the Work-Life Balance for Sri Lankan Women Entrepreneurs 📈

The challenge of balancing professional growth with traditional domestic duties remains a significant barrier for women in Sri Lanka's economy. While women comprise over 50% of the population, their labour force participation stands at only 30%–34%. • Economic Impact SMEs contribute over 50% of Sri Lanka's GDP and 45% of total employment. Only approximately 25% of these businesses are female-led, with many operating within the informal sector. Structural hurdles include limited access to credit, long working hours, and high financial risks. • Key Challenges Unequal domestic workloads and cultural pressure to prioritize family over business. Lack of affordable childcare and eldercare services. Emotional exhaustion and "guilt" stemming from dual responsibilities, leading to reduced productivity. • Market & Policy Solutions Market-based innovations: Growth in ready-to-cook meals and home delivery services is actively reducing domestic chore time. Strategic shifts: Increasing use of flexible business models and task delegation. Policy needs: Calls for gender-sensitive financing, entrepreneurship training, and state-supported childcare to bridge the gender gap. Supporting women to balance these roles is a national economic priority to ensure a more inclusive and sustainable ICT/BPM and SME ecosystem.

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## Fintech Literacy: The Missing Link for Sri Lanka’s Young Entrepreneurs 📈

A significant skill gap in Financial Technology is hindering the scalability of youth-led startups in Sri Lanka, despite their mastery of social media marketing. • The "Digital Native" Paradox Many young founders rely on manual bank transfers and "screenshot verification," creating operational bottlenecks. This "manual model" limits sales volume and lacks the professional invoicing expected by premium customers. • Underutilized Infrastructure • LankaQR: A low-cost, zero-hardware solution by the Central Bank that remains underused due to awareness gaps regarding its interoperability with apps like Q+, SOLO, and Frimi. • Internet Payment Gateways (IPG): Essential for the ICT/BPM and digital retail sectors to reduce "cart abandonment" caused by high-friction manual payment steps. • Economic Impact & Growth Adopting seamless digital payments is viewed as a "silent killer" of growth if ignored. Transitioning to integrated gateways allows startups to capture impulse buys and signals business legitimacy in a market increasingly wary of scams. • Strategic Recommendation There is an urgent call to integrate Fintech literacy—including Merchant Discount Rates (MDR) and digital onboarding—into national entrepreneurship curricula to move beyond a "cash-on-delivery" economy.

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COYLE Concludes Year of Growth with Focus on Global Expansion and Innovation 📈

The Chamber of Lankan Entrepreneurs (COYLE) has marked a year of operationalizing its "Vision to Reality" theme, focusing on internal capacity building and international integration for the entrepreneurial sector. • Strategic Focus & Skills Development Prioritized digital transformation, Artificial Intelligence, and cybersecurity to equip leaders for modern risks. Partnered with Harvard Business School for global strategic frameworks. Launched the COYLE World Mastercard with Sampath Bank to enhance financial tools for members. • International & Diplomatic Engagement Strengthened ties with 8+ diplomatic missions (including India, Singapore, and New Zealand) to explore trade and investment. Signed MoUs with JETRO (Japan), AHK Sri Lanka (Germany), and the Sri Lanka–New Zealand Business Chamber to facilitate market access. Hosted inbound business delegations from Switzerland, Taiwan, and Nepal. • National Policy & Productivity Submitted comprehensive budget proposals to the Presidential Secretariat to improve the "ease of doing business" in Sri Lanka. Inaugurated the Sri Lanka Corporate Health and Productivity Awards (SLCHPA) to link employee wellbeing with economic output. Collaborated with the Alliance of Lankan Entrepreneurial Chambers (ALEC) to unify national advocacy efforts. • Youth & Future Growth Conducted "Back-to-School" initiatives at major colleges to mentor the next generation of SME and corporate leaders, fostering long-term economic resilience.

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📈 SLCSMI Launches National SME Support Forum to Address Economic Challenges

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

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

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

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

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

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

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

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Energy News (Note: Based on the provided list, this falls under **Industry & Sector News**)

Strategic Partnership, Product & Service Launches / Business Expansions

**Politics & Government Impact**

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

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

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

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

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