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Product & Service Launches / Business Expansion

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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Product & Service Launches / Business Expansion

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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Roar Global Scales South Asian Presence in Bangladesh and Nepal 📈

Sri Lankan mar-tech venture builder, Roar Global, has announced a strategic expansion of its regional footprint, transitioning from initial market entry to scalable operations in key South Asian markets. • Bangladesh Operations: Following a successful first year of revenue generation since September 2024, the company is shifting to a dedicated regional team model. Key focus areas include strengthening Meta advertising capabilities and expanding local infrastructure to support sustainable growth. • Nepal Market Entry: Roar Global has entered an exclusive partnership with Advantage Group to lead local execution. This alliance aims to elevate digital advertising standards, accelerate Meta adoption, and enhance advertiser performance through structured market education. • Regional Strategy: These developments reinforce Roar Global’s role as a regional leader in the ICT/BPM and digital advertising sectors. The move focuses on professionalizing digital ecosystems and leveraging local talent to build enduring commercial infrastructure across emerging markets. • National Impact: This expansion highlights the global competitiveness of Sri Lankan-led digital firms, contributing to the country's reputation as a hub for regional mar-tech innovation and professional services.

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Appointments & Executive Moves

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📈 Renuka Weerakone Appointed as BOI Director General

• Leadership Transition: Renuka Weerakone has been officially appointed as the Director General of the Board of Investment (BOI) of Sri Lanka, the country’s primary agency for attracting foreign direct investment (FDI). • Extensive Experience: Weerakone brings over 30 years of institutional experience to the role. She previously served as the Senior Executive Director and has held the Director General position in an acting capacity for the past four years. • Strategic Context: Her permanent appointment provides leadership stability to the investment promotion sector, which is vital for Sri Lanka’s economic recovery and industrial growth. • Current Vacancy: While the Director General position is now filled, the post of BOI Chairman remains vacant. The government has yet to appoint a successor nearly six weeks after the position was vacated.

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Pay&Go CEO Vardan Aslibekyan Joins Fintech Forum Board 📈

• Leadership & Governance: Vardan Aslibekyan, CEO of Pay&Go, has been appointed to the Board of Directors of the Fintech Forum Sri Lanka. The appointment was made by Chairman Channa de Silva in recognition of Aslibekyan’s impact on the local digital payments landscape. • Sector Impact: The Fintech Forum acts as a key intermediary between the Central Bank of Sri Lanka, government bodies, and private stakeholders to drive innovation and policy growth in the financial technology sector. • Pay&Go Performance: • User Base: Serves over 5 million unique users. • Transaction Volume: Processes an average of 1.5 million transactions per month. • Infrastructure: Operates a hybrid ecosystem of mobile apps, POS networks, and a nationwide network of self-service kiosks. • Future Outlook: The forum is currently preparing for its second Fintech Summit in July 2026, aiming to attract regional investors and policymakers to further scale Sri Lanka's digital financial services. 🇱🇰

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Banking Veteran Jonathan Alles Joins Singer Finance Board 📈

Singer Finance (Lanka) PLC has officially appointed former HNB Managing Director/CEO Jonathan Alles as a Non-Independent Non-Executive Director, effective following Central Bank approval on March 5, 2026. • Profile & Expertise: With over 37 years of experience in the banking and finance sectors, Alles has held senior roles at HSBC, National Bank of Abu Dhabi, and Saudi British Bank. He is an MBA graduate (Finance) from the University of Stirling and an Associate Member of the Institute of Bankers of Sri Lanka. • Leadership Legacy: He previously served as Chairman of the Sri Lanka Banks Association (2013-2015) and the Asian Bankers Association (2018-2021). His career includes chairmanship and board roles at major entities including HNB Finance PLC, Lanka Clear Ltd, and Acuity Partners. • Current Engagements: Alles currently holds independent directorships across diverse sectors, including United Motors Lanka, Lion Brewery, Hayleys PLC, and Singer SL PLC. • Strategic Impact: This appointment brings deep institutional knowledge to Singer Finance's governance, particularly in navigating Sri Lanka's evolving financial services landscape. Based on official filings, Alles holds no relevant shares or debentures in the company. _Source: Based on provisional corporate disclosures._

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Dr. Dewasiri Jayantha Appointed as CEO of PMF Finance 📈

• PMF Finance PLC has officially appointed Dr. Dewasiri Jayantha as its new Chief Executive Officer, effective 3 March 2026, following approval from the Central Bank of Sri Lanka. • A distinguished figure in the financial services and academic sectors, Dr. Jayantha is a Professor in Finance (on Merit) and currently serves as the President of the Sri Lanka Institute of Marketing (SLIM). • He brings over 17 years of senior industry experience alongside a robust academic background, including a PhD in Finance from the University of Colombo and fellowships from the Chartered Management Institute (UK) and the Chartered Institute of Marketing (UK). • His expertise spans corporate governance, sustainable finance, and institutional transformation, having authored over 100 research publications on global financial stability and emerging-market development. • The appointment signals a focus on merging academic rigor with practical leadership to enhance the company's financial sector resilience and strategic growth.

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Unilever Sri Lanka Chairman Ali Tariq appointed as Cluster Head for Growth Markets 📈

Unilever has announced a significant leadership expansion for its Sri Lankan operations, positioning the local office at the center of a regional growth cluster. • New Leadership Scope: Ali Tariq, currently Chairman and CEO of Unilever Sri Lanka, has been appointed as the Cluster Head for growth markets covering Sri Lanka, Myanmar, Cambodia, and Laos. • Global Integration: Tariq will report directly to Unilever’s Global Executive, signaling the strategic importance of this cluster within the group's international framework. • Experience Profile: A 22-year veteran of the group, Tariq brings extensive experience in general management, finance, and organizational transformation across Europe, South Asia, and the Far East. • Strategic Impact: The move suggests a focus on regional diversification and strengthening organizational transformation within these emerging markets, leveraging the established leadership in Sri Lanka to drive broader regional growth. _Summary based on official company announcement._

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CBSL Approves New CEO for Bank of Ceylon (BOC) 📈

The Central Bank of Sri Lanka (CBSL) has officially approved the appointment of Y.A. Jayathilaka as the General Manager/Chief Executive Officer of the state-owned Bank of Ceylon, effective from 27 February 2026. • Leadership Transition: Jayathilaka transitions into the permanent role after serving as the Acting GM/CEO since 6 August 2025. • Professional Background: He previously served as the Deputy General Manager for Product and Banking Development and joined the bank's Corporate Management team in February 2020. • Strategic Impact: As a veteran of the state-sector banking & finance industry, his formal appointment provides leadership stability for Sri Lanka's largest commercial bank during a critical period of economic recovery.

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RDB Bank Appoints New Directors to Drive Development Mandate 📈

The state-owned Regional Development Bank (RDB) has strengthened its leadership team with two high-profile appointments to its Board of Directors, aimed at enhancing financial inclusion and supporting SME entrepreneurs. • New Appointments & Expertise Asoka Bandara (Independent/Non-Executive): Effective Oct 2025. Over 40 years of experience in consumer goods (FMCG), dairy value chains, and corporate strategy. Formerly at Nestlé, Delmege Forsyth, and currently at Maliban. Wasanthe Nandasiri (Independent/Non-Executive): Effective Nov 2025. A Fellow Chartered Accountant with 20+ years in banking, financial services, and multi-country operations. Former senior lead at Ernst & Young. • Strategic Focus Areas Governance & Transformation: Integration of advanced risk management, treasury oversight, and large-scale ERP implementations. Sector Synergy: Leveraging Bandara’s leadership in the dairy and confectionery sectors to align bank lending with national industrial growth. Institutional Sustainability: Focus on long-term value creation and business restructuring to fulfill the bank's development mandate. • Key Professional Backgrounds Bandara: President of All-Island Dairy Association; former Director at People’s Leasing and Litro Gas. Nandasiri: Expertise in audit, valuation, and business transformation across South Asia and emerging markets. The move signals a push for professionalized management within state-backed development finance institutions to better serve the agricultural and manufacturing sectors.

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Lanka IOC Appoints K. Raghu as New Managing Director 📈

Lanka IOC PLC has officially announced the appointment of K. Raghu to its Board as Executive/Managing Director, succeeding Dipak Das. A veteran of the petroleum sector, Raghu brings over 26 years of experience from Indian Oil Corporation Ltd. • Leadership & Expertise: Raghu holds a B. Tech in Civil Engineering and an MBA. His career spans significant roles in downstream marketing, retail strategy, and business leadership across major Indian states. • Strategic Achievements: He is credited with driving market share growth and spearheading retail network expansion. Notable successes include commissioning top-ranked company-owned outlets and introducing CNG infrastructure in new markets. • Modernization & Sustainability: His background includes leading retail automation, visual identity overhauls, and advancing sustainable mobility via LNG stations and electric vehicle (EV) charging networks. • Impact on Sri Lanka: In his new role, Raghu will provide strategic direction to Lanka IOC, focusing on operational excellence and sustainable energy solutions to further develop Sri Lanka’s energy sector.

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Sanjay Kulatunga Appointed to WindForce PLC Board 📈

• WindForce PLC has announced the appointment of Mr. Sanjay Kulatunga as an Independent, Non-Executive Director effective March 3, 2026. He succeeds Mr. Dilshan Hettiaratchi following the latter’s resignation, aiming to strengthen the company’s strategic oversight and governance. • Mr. Kulatunga is a seasoned entrepreneur and finance professional, currently serving as the Co-Founder and CEO of LYNEAR Wealth Management. His extensive background in financial services and export-oriented industries is expected to bolster the firm’s long-term decision-making. • Key professional highlights include: • Co-founded Amba Research, a pioneer in Sri Lanka's investment research offshoring sector. • Held high-level public sector roles at the Central Bank of Sri Lanka (FSSCC), the Board of Investment (BOI), and the Securities and Exchange Commission (SEC). • Currently a Member of the Colombo Port City Economic Commission. • His academic credentials include an MBA from the University of Chicago Booth School of Business, alongside CFA and ACMA (UK) qualifications. This appointment integrates top-tier financial expertise into the renewable energy sector's leadership.

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Indira Malwatta Appointed to CT Holdings Board 📈

CT Holdings PLC has announced the appointment of Indira Malwatta as an Independent Non-Executive Director, bringing over 40 years of expertise in export promotion and international marketing to the group. • Professional Background: A veteran in public sector leadership, she served as the first female Chairperson of the Sri Lanka Export Development Board (EDB). Her experience spans the industrial, agricultural, and SME sectors. • Key Achievements: Recipient of the Wifts Foundation Lifetime Achievement Award (London, 2016) and recognized by the LMD “A-List” of Sri Lankan business leaders. She has served as a focal point for projects with the World Bank, ITC, and JETRO. • Current Directorships: Currently holds Board positions at Samson International PLC (Chairperson), Cargills (Ceylon) PLC, Kotmale Holdings PLC, and Lanka Shipping and Logistics Ltd. • Economic Context: Her appointment strengthens the board’s capacity in supply chain management and women’s empowerment, reinforcing CT Holdings’ strategic leadership in the retail and manufacturing sectors. Note: Based on provisional corporate data. ---

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Commercial Bank Appoints Hasrath Munasinghe as Executive Director/COO 📈

• Commercial Bank of Ceylon PLC has officially appointed Hasrath Munasinghe as Executive Director and Chief Operating Officer (COO), effective 27 April 2026. He succeeds S. Prabagar, who retires after a 30-year career at the bank. • Munasinghe currently serves as Deputy General Manager – Corporate Banking. His extensive tenure at ComBank includes leadership roles across Retail Banking, Digital Banking, Remittances, and Sustainability. • With 31 years of multi-disciplinary experience in Banking, Telecommunications, and FMCG, he brings over 15 years of corporate management expertise to the role. He is credited with driving portfolio expansion and strengthening asset quality. • He holds dual roles as a Director of CBC Finance PLC and a Board member of the UN Global Compact (UNGC) Network Sri Lanka, reflecting a focus on ESG and responsible governance. • Academically, he holds an MSc in IT from the University of Moratuwa, an MBA, and professional fellowships from CIMA (UK) and CIM (UK). _Note: Appointment follows the scheduled retirement of the current COO._

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### Union Assurance Appoints CEO Senath Jayatilake to Board 📈

Union Assurance PLC has officially appointed its Chief Executive Officer, Senath Jayatilake, to the Board as an Executive Director, effective immediately. This move strengthens the leadership synergy between the company’s executive management and its strategic governance. • Executive Profile: Jayatilake serves as an Executive Vice President of the John Keells Group. His previous leadership includes a tenure as CEO of John Keells Logistics Ltd. • Professional Expertise: Brings over 19 years of experience across operations management, sales and marketing, and financial management. • Qualifications: • MBA from the Postgraduate Institute of Management (SJP). • BA (Hon) in Finance, Accounting, and Management (University of Nottingham). • Associate Member (ACMA) and Chartered Global Management Accountant (CGMA). • Strategic Impact: The appointment is expected to bolster Union Assurance’s position within the insurance and financial services sectors by leveraging Jayatilake's extensive cross-industry experience within the John Keells ecosystem.

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Politics & Government Impact

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Cabinet Approves Relief Package for Export Crop Replanting 📈

The Cabinet of Ministers has greenlit a financial relief scheme to restore tea, rubber, and coconut plantations devastated by extreme weather in late 2025. This initiative aims to accelerate the recovery of production capacity and mitigate long-term impacts on export revenues. • Relief Allocation by Sector: Coconut: Up to Rs. 750,000 per hectare (highest compensation tier). Tea: Up to Rs. 500,000 per hectare for affected cultivators. Rubber: Up to Rs. 400,000 per hectare for plantation owners. • Scope of Support: The program targets both smallholders and large estates. It follows previous relief efforts for field crops, vegetables, fruits, and minor export crops (such as pepper, coffee, and cardamom) damaged during the same period. • Economic Context: The Plantation and Community Infrastructure Ministry formulated the package following a detailed Treasury assessment. As these sectors are primary pillars of the agricultural economy, the funding is specifically earmarked for replanting to restore national export stability.

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Sri Lanka Establishes Economic Surveillance Committee Amid Middle East Conflict 📈

The Cabinet of Ministers has approved a proposal by the President to form a Committee on Economic Surveillance to monitor and mitigate risks arising from the ongoing Middle East crisis. • Leadership & Mandate: The committee is chaired by Dr. Anil Jayantha Fernando (Deputy Minister of Finance and Planning & Minister of Labour). It comprises institutional heads and sectoral experts tasked with continuous risk assessment and submitting policy recommendations to the Cabinet. • Key Economic Vulnerabilities: As a small open economy, Sri Lanka faces potential shocks in three critical areas: Energy: Exposure to fluctuations in global oil prices and supply chain disruptions. Remittances: Risks to the steady inflow of funds from the significant Sri Lankan migrant workforce based in the Middle East. Trade & Investment: Potential impact on export markets and regional investment flows. • Strategic Objective: The committee aims to provide proactive response measures to protect national economic stability from external shocks and ensure minimal disruption to essential sectors.

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Muslim Organizations Call for Middle East Ceasefire Amid Economic Concerns 📈

A coalition of Sri Lankan Muslim religious and civil organizations, including the All Ceylon Jamiyyathul Ulama and the Muslim Council of Sri Lanka, has issued a joint statement calling for an immediate ceasefire in the Middle East following a significant escalation in regional conflict. • Economic Implications: The groups highlighted that the conflict poses severe risks to Sri Lanka’s economically vulnerable state, specifically citing potential disruptions to trade, energy supplies, and the security of overseas employment for Sri Lankan workers. • Diplomatic Appeal: The statement urges the Government of Sri Lanka and the UN to demand an unconditional ceasefire and to take proactive measures to shield the national economy from rising commodity prices and supply chain instability. • Key Concerns: Beyond humanitarian impacts—including the reported bombing of a school in Iran—the organizations warned that the targeting of sovereign leadership threatens global stability and the sovereignty of developing nations. • Context: The groups emphasized that for a nation like Sri Lanka, wars between powerful states inevitably inflict suffering via "essential commodity" price hikes and threats to the livelihoods of millions dependent on Middle Eastern stability.

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### 📈 HRW Reports Unlawful White Phosphorus Use in Lebanon

Human Rights Watch (HRW) has documented the Israeli military’s use of airburst white phosphorus munitions in residential areas of southern Lebanon, specifically in Yohmor on March 3, 2026. • Key Findings: HRW verified seven photos and geolocated footage showing M825-series 155mm artillery projectiles being deployed over populated zones, causing fires in at least two homes and a vehicle. • Legal Context: The report classifies the use as "unlawfully indiscriminate" under international humanitarian law, as the chemical substance ignites upon oxygen exposure, posing extreme risks of death or lifelong injuries to civilians. • Regional Impact: Over 500,000 people are currently registered as displaced in Lebanon due to ongoing hostilities. Recent Israeli airstrikes have also targeted Beirut's southern suburbs, including Ghobeiry and Haret Hreik. • Casualty Figures: Current data indicates at least 394 fatalities and over 1,000 injuries in Lebanon resulting from recent Israeli attacks. • Global Recommendations: HRW has urged major arms suppliers—including the US, UK, and Germany—to suspend military sales and impose targeted sanctions on officials implicated in these actions. _Note: This summary is based on reporting from HRW and Lebanon’s National News Agency._

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📈 US-Iran Tensions Rise Following Appointment of New Supreme Leader

US President Donald Trump has criticized Iran’s selection of Mojtaba Khamenei as the new Supreme Leader, labeling the move a "big mistake." This leadership transition follows the death of his father, Ayatollah Ali Khamenei, in a recent US-Israel military operation. • Geopolitical Impact: Trump described the new leader as a "lightweight," signaling a likely continuation of the "maximum pressure" policy which historically impacts global energy markets and commodity prices. • Energy Sector: The President stated it is "too soon" to discuss seizing Iranian oil assets but explicitly noted he "does not rule it out." • Economic Context: For Sri Lanka, heightened tensions in the Middle East often correlate with volatility in fuel imports and potential disruptions to tea exports to the region, a critical source of foreign exchange. The situation remains fluid as markets monitor potential escalations in the Gulf.

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⚠️ Report: Impact of US-Israeli Strikes on Iran

📈 Casualty and Damage Overview Based on provisional data from the Iranian Red Crescent Society (IRCS) and news agencies, the conflict has resulted in significant civilian and infrastructure impact: • Human Toll: The death toll in Iran has risen to 1,332. The deadliest incident occurred in Minab, where a strike on an elementary school reportedly killed approximately 180 children. • Military Casualties: The US military confirmed 6 deaths and 18 injuries, while Israel reported 11 fatalities. • Infrastructure Damage: • Targeted Units: At least 6,668 civilian units targeted, including 5,535 residential and 1,041 commercial units. • Destroyed Units: Total destroyed units reached 9,669 (including 7,943 residential and 1,617 commercial). • Essential Services: Attacks hit 14 medical centres, 65 schools, and 13 IRCS facilities. • Rescue Operations: Several IRCS staff were injured, and multiple relief vehicles were damaged during rescue missions. Note: Data based on IRCS statistics and semi-official reports as of March 10, 2026.

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## Sajith Premadasa Calls for Peace Zone as Maritime Tensions Rise 📈

Opposition Leader Sajith Premadasa has urged international restraint to maintain the Indian Ocean as a zone of peace, warning that escalating regional hostilities threaten Sri Lanka’s fragile economic recovery. • Regional Escalation: The call follows the sinking of the Iranian warship IRIS Dena in international waters off Sri Lanka and the subsequent docking of the IRIS Bushehr in Trincomalee. • Economic Risks: Premadasa cautioned that "asymmetric warfare" and a widening Middle East conflict pose severe risks to smaller nations, specifically noting that Sri Lanka is still navigating its way out of the 2022 economic crisis. • Humanitarian Response: The Sri Lankan Government confirmed it will assist IRIS Dena survivors under international protocols and humanitarian obligations. • Strategic Outlook: The Opposition Leader emphasized that preventing the conflict from spreading is essential to protect the domestic economy and regional stability.

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## SL Missions Monitor West Asia Tensions; Injured Nationals Safe 📈

The Ministry of Foreign Affairs, Foreign Employment and Tourism is closely tracking regional stability to ensure the safety of nearly one million Sri Lankans working across the Middle East. • Status of Nationals: All four Sri Lankans previously injured in recent attacks have been discharged from hospitals. Officials confirmed three are recovering well; contact is being established with the fourth. • Government Response: An Emergency Response Unit (ERU) has been established to coordinate safety measures and assist both Sri Lankans abroad and foreign nationals in Sri Lanka affected by the crisis. • Economic Context: The region is a critical hub for foreign employment and remittances, which are vital for Sri Lanka’s foreign exchange liquidity and household stability. • Diplomatic Stance: The Government has called for restraint and a peaceful resolution to safeguard civilian lives and maintain regional stability.

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US Forces Issue Urgent Safety Warning to Iranian Civilians ⚠️

The US Central Command (CENTCOM) has issued a critical safety advisory for civilians in Iran, citing the Iranian regime's use of densely populated areas for military operations. • Military Activity: The Iranian regime is reportedly utilizing cities such as Dezful, Esfahan, and Shiraz to launch ballistic missiles and one-way attack drones. • Legal Implications: CENTCOM noted that under international law, civilian locations used for military purposes lose their protected status and may become legitimate targets. • Regional Impact: Since February 28, Iran has launched hundreds of missiles and thousands of drones, targeting civilian infrastructure including airports, hotels, and residential neighborhoods across the Middle East. • Operational Status: While launch rates have "drastically declined" due to US and partner interventions, CENTCOM urges civilians to stay at home as they cannot guarantee safety near regime-controlled military facilities. Based on official CENTCOM statements as of March 9, 2026.

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Headline: National Defence Must Evolve Beyond Political Rhetoric 📈

A recent analysis of Sri Lanka’s security discourse highlights a concerning trend of treating national defence as casual political banter rather than a complex strategic necessity. In an increasingly volatile global environment, the shift toward a "Total Defence" model is deemed essential for economic and sovereign stability. • Strategic Context & Risks: Sri Lanka’s position near major East-West shipping lanes makes it a focal point for global power interactions. The report warns that the margin for error is narrow, as regional naval confrontations can quickly impact local waters. • Modern Defence Framework: Modern security has moved beyond traditional military force to include: Economic Resilience: Protecting financial systems from external coercion. Cyber Security: Safeguarding technological infrastructure against hybrid threats. ICT/BPM & Infrastructure: Ensuring the continuity of essential digital and physical services during crises. • Institutional Discipline: The report cites Singapore’s "Total Defence" doctrine as a benchmark, where national strength is built on the unity of government institutions, social cohesion, and strict adherence to international law. Adhering to maritime conventions and diplomatic norms is framed as a tool to prevent Sri Lanka from becoming "unnecessarily entangled" in major power rivalries. • Conclusion: Effective national defence requires moving beyond slogans toward informed judgment and institutional discipline to protect the state’s sovereignty and its employment and economic sectors.

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⚖️ Bribery Commission Files Corruption Charges Against Power Minister

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has filed formal indictments in the Colombo High Court against current Power Minister, Kumara Jayakody, involving alleged financial misconduct during his previous tenure in the state sector. • Case Origin: The charges date back to 2016, during the Minister's term as Deputy Procurement Manager at the state-owned Lanka Fertilizer Company Limited. • The Allegation: The Minister is accused of facilitating an unlawful benefit to a private entity regarding a contract for supplying carpets to the company's warehouse premises. • Financial Impact: Investigators state the procurement decision caused a financial loss to the Government exceeding Rs. 8.8 million. • Legal Framework: The case is filed under Section 70(a) of the Bribery Act, categorized as an offense of corruption. The indictments have been submitted to the Colombo High Court for further legal proceedings.

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SLTDA Hosts Goodwill Brunch for Stranded Tourists Amid Regional Crisis 📈

The Sri Lanka Tourism Development Authority (SLTDA) has launched a support initiative for foreign visitors stranded in the country due to ongoing Middle East flight disruptions and airport closures. • Support Measures: The government has implemented several relief actions, including a 14-day free visa extension and logistical coordination with airlines to assist affected travelers. • Hospitality Initiative: A special brunch was hosted at the SLITHM Monara Restaurant as a gesture of "warmth and generosity" to reassure guests whose return journeys were delayed by airline suspensions. • Key Services: A dedicated 24-hour tourist assistance hotline (1912) remains active to provide real-time information and support for international visitors. • Strategic Impact: SLTDA Chairman Buddhika Hewawasam emphasized that the move reinforces Sri Lanka’s reputation as a responsible and welcoming destination within the global tourism sector, prioritizing visitor safety and welfare during unforeseen global disruptions.

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Financial & Investment News

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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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Sri Lanka to Host Landmark Global Investment Forum on June 10 📈

• Event Overview: The Sri Lanka Export Development Board (EDB) has announced plans for what is expected to be the largest and most extensive investment forum in the country’s history, scheduled for June 10, 2026. • Strategic Objective: The forum aims to bring top-tier global investors to Sri Lanka to facilitate direct, face-to-face engagement with local exporters, focusing on expanding international market linkages. • Sector Impact: The initiative targets growth across key national sectors, including export manufacturing, apparel & textiles, and agricultural exports, by providing a platform for discussions on expanding export opportunities. • Key Highlights: • Expected to be the most "extensive and attractive" gathering of its kind in Sri Lanka. • Focus on strengthening global buyer-investor relationships. • Led by EDB Chairman Mangala Wijesinghe to drive long-term export sector growth. _Note: Summary based on provisional EDB announcements as of February 25, 2026._

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## Capital Alliance Lists Third Closed-End Fund on CSE 📈

Capital Alliance Investments Ltd (CALI) officially listed the units of its CAL Three Year Closed End Fund on the Colombo Stock Exchange (CSE), marking another milestone in the growth of structured investment vehicles in Sri Lanka. • Listing Details: A total of 841,263,375 units were listed following a ceremonial bell-ringing at the CSE. This follows CALI’s previous launches of the Five Year Closed End Fund (2025) and the Five Year Optimum Fund (2024). • Fund Strategy: The fund is a closed-end fixed income unit trust with a three-year tenure. It focuses on capital preservation and growth through a diversified portfolio of fixed income instruments, governed by strict internal credit filters and liquidity monitoring. • Market Context: The listing reflects rising domestic interest in unit trusts as a professional entry point for retail investors. In a stabilizing yield environment, these funds aim to provide predictable cash flow and channel national savings into productive economic activity. • Sector Impact: This development strengthens the financial services sector by expanding the range of professionally managed investment products available, supporting broader capital market development during the country’s economic recovery.

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Understanding Fixed Income: Bonds & the Sri Lankan Market 📈

A collaborative insight by CFA Society Sri Lanka, SEC, and CSE highlights the role of bonds in building resilient portfolios through stable income and risk mitigation. • Core Mechanics • Bonds act as loans to the Government or corporates in exchange for regular "coupon" (interest) payments. • Maturity periods: Short-term (<3 yrs), Medium-term (3–10 yrs), and Long-term (>10 yrs). • Secondary Market Inverse: Bond prices and interest rates move in opposite directions; falling rates boost existing bond values. • Market Instruments in Sri Lanka • Government Securities: Treasury Bills (discounted short-term) and Treasury Bonds (fixed-term) issued via CBSL. • Corporate Debentures: Companies issue debt for expansion, typically with ~5-year maturities, often listed on the CSE. • Sustainable Finance: Emerging Green, Blue, and Social Bonds (GSS+) targeting ESG-focused projects. • Yields & Risk Comparison • Historical returns (1994–2024): T-Bills averaged 11.34% with no principal loss, vs. ASPI (shares) at 14.57% with high 37.10% volatility. • Key risks: Interest rate risk, inflation risk, credit (default) risk, and liquidity risk. • Credit ratings (e.g., Fitch, Moody’s) help assess an issuer's likelihood of debt repayment. • Investment Strategy • Bonds offer predictable income and priority in liquidation over shareholders. • Recommended for diversification to offset stock market volatility, especially for conservative investors and retirees.

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## Patient Capital Rebuilding the North: $ 5M Deployed 📈

Veteran banker Rajendra Theagarajah, via the Cinnamon Global fund, has outlined a "patient-capital" model to drive sustainable wealth in Sri Lanka’s Northern Province, moving away from charity toward long-term growth. • Overall Investment & Strategy Total Deployed: Approximately US$ 5 Mn over four years. Focus: Growth-stage enterprises (not startups/seed funding). Model: Revenue-linked returns instead of traditional collateral or interest. Ticket Sizes: Typically US$ 25,000 – 50,000 per entity; largest single investment at US$ 700,000. • Sector Breakdowns & Verticals Agriculture: Focus on value addition and heritage rice (expanded to 350+ farmers). Aquaculture & Fisheries: Supporting coastal economic development. ICT/BPM: Innovative ventures to retain local talent and prevent urban migration. Logistics: Services supporting the broader regional ecosystem. • Key Impact Highlights Financial Inclusion: Transitions informal businesses into the formal banking system through governance and compliance support. Agricultural Tech: Implementation of soil mapping and AI-driven crop advisory for heritage rice. Export Potential: Targeting UK and US markets for low-glycemic rice varieties. Local Empowerment: Focus on Tamil-language engagement and grassroots trust-building to bridge knowledge gaps.

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Gold & Silver Markets Shaken by Global Crash: Implications for Sri Lanka 📈

The global financial landscape witnessed a seismic shift as gold and silver prices suffered a sharp collapse, erasing an estimated US$ 3 Trillion in market value within 90 minutes. Driven by algorithmic selling and mass profit-taking, the "flash crash" has critical repercussions for Sri Lanka’s export-driven economy. • Market Breakdown & Volatility • Gold prices plunged to approximately US$ 5,135/oz, while silver fell to nearly US$ 109/oz. • Locally, 24K gold reached a milestone of Rs. 435,050 per 8g (1 sovereign) earlier in February before the correction. • The crash was accelerated by high-frequency trading and margin calls, impacting global liquidity. • Sector Impact & Exports • Gems & Jewellery: As a net importer of gold for manufacturing, Sri Lanka faces extreme volatility in working capital and inventory valuation. However, the sector showed resilience in 2025, with Diamonds, Gems & Jewellery exports estimated to grow 46.15% YoY (reaching US$ 23.91 Mn in Dec 2025). • Apparel & Textiles: Remained the top revenue driver, earning US$ 4.9 Bn in 2025 (+5.34% YoY). • Tea: Export earnings reached US$ 1.5 Bn (+4.97% YoY) in 2025. • Economic & Policy Outlook • Total exports for 2025 reached US$ 17.25 Bn (+5.6% YoY), with a US$ 20 Bn target set for 2026. • Global volatility pressures the Sri Lankan Rupee and complicates Central Bank reserve valuations, as gold is a key component of official foreign exchange reserves. • Experts advise a shift from price speculation to margin protection and design-based value addition for local stakeholders.

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Unit Trust Industry Hits Rs. 610 Bn Asset Milestone 📈

Sri Lanka's unit trust industry recorded a strong start to 2026, with Assets Under Management (AUM) growing 6.1% YoY to surpass the Rs. 600 Bn mark by end-January. • Overall Growth: Total AUM reached Rs. 610 Bn, marking a 3.8% increase from December 2025. The industry now comprises 84 funds managed by 16 companies. • Sector Performance: • Equity-related funds were the primary driver, doubling YoY to Rs. 67 Bn and surging 10.2% in January alone. • Fixed income funds maintained steady growth, rising 2.9% YoY. • Investor Participation: The industry added 3,110 new unit holders in January (+35.0% YoY), bringing the total investor base to 147,020—a 25.7% YoY increase. The shift toward equity reflects high investor confidence in capital market performance and a strategic move toward long-term capital appreciation. The Unit Trust Association of Sri Lanka (UTASL) continues to focus on enhancing financial literacy and accessibility to further integrate retail investors into the formal economy. _Data based on UTASL January 2026 industry report._

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## 📈 Understanding Unit Trust Disclaimers in Sri Lanka

The Unit Trust Association of Sri Lanka (UTASL) clarifies that mandatory disclaimers in unit trust advertisements are designed to protect investors, not fund managers, by ensuring transparency and realistic expectations. • Core Purpose of Disclaimers Since unit trusts are market-linked—investing in government securities, bonds, and equities—returns are subject to market volatility. The SEC strictly prohibits guaranteed returns to prevent misleading investors. • Decoding Key Phrases • "Yield is variable": Indicates returns fluctuate based on interest rate shifts (for money market funds) or share price movements (for equity funds). • "Past performance is not indicative of future performance": A reminder that historical gains do not guarantee future results due to changing economic conditions. • The Role of Documentation • KIID (Key Investor Information Document): A mandatory SEC-regulated document detailing fund risks, fees, and suitability. • Fact Sheets: Provide concise, regular updates on fund performance and asset allocation. • Sector Significance Unit trusts promote financial inclusion by offering professional management and diversification to retail investors. This industry, comprising 16 licensed companies, plays a vital role in mobilizing capital for national economic growth. _Note: Information based on industry insights provided by UTASL on February 17, 2026._

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Sri Lanka Investment Forum 2026: Focusing on Green Transition & Economic Recovery 📈

The Board of Investment (BOI) is set to host the Sri Lanka Investment Forum 2026 on 30 March at Cinnamon Life, Colombo. Partnering with the EU, ADB, and ESCAP, the event aims to showcase the nation's landscape for sustainability and tech-driven growth. • Core Theme: Investing in Sri Lanka’s green and connected future, with a heavy focus on renewable energy, green finance, and economic recovery strategies. • Sector Highlights: • Manufacturing: Emphasis on value-added processing, pharmaceuticals, and industrial manufacturing. • Services: Focus on logistics, integrated warehousing, and aviation services. • Infrastructure: Opportunities in technology/innovation parks, university towns, and "cinema cities." • Leisure & Recreation: Targeted growth in nautical tourism, waterfront developments, and theme parks. • Key Features: The forum will include an exclusive EU-SL Investor Dialogue, B2B matchmaking sessions, and deep dives into green finance instruments to fund the transition. • Support: Co-funded by the European Union with strategic support from the ADB and UN ESCAP to align with international sustainability standards.

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📈 SME Forum: SEC & CSE Target Regional Business Growth

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) are hosting an issuer forum today, 13 February 2026, in Weligama. The initiative aims to bridge funding gaps for regional businesses by encouraging engagement with the capital market. • Overall Market Strength (2025): • Market Capitalisation: Exceeded Rs. 8.5 Trillion. • New Listings: 25 total (including 6 new companies raising debt and equity). • Innovative Instruments: Introduction of Blue Bonds, Green Bonds, and Sustainable Bonds. • Key Focus Areas for SMEs: • Transitioning to the Empower and Diri Savi boards for easier listing. • Strategies for succession planning, governance, and wealth management. • Reducing reliance on traditional bank credit in favor of risk capital. • Strategic Outlook: The forum highlights a shift toward broad-basing companies across Sri Lanka. By leveraging a buoyant market—noted for significant volume increases—SMEs in sectors like tourism and agribusiness can access mid-to-long term capital to catalyze expansion.

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Economic News

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📈 Sri Lanka Export Barometer: Policy Uncertainty & High Costs Strain Competitiveness

A recent survey by the Ceylon Chamber of Commerce (conducted Nov 2025 – Jan 2026) reveals that over 50% of exporters view Sri Lanka’s investment climate as worse than regional competitors, primarily due to regulatory instability. • Key Constraints: Exporters cited policy uncertainty, high energy prices, rising labour costs, and regulatory barriers as the primary hurdles to maintaining global competitiveness. • Strategic Adaptation: Despite challenges, the sector shows resilience through diversification: • 55% have identified new markets. • 28% are introducing new products to existing markets. • 27% are launching new products in entirely new markets. • 80% emphasize the critical importance of Free Trade Agreements (FTAs). • Industry Needs: Firms are calling for urgent digital reforms, including a National Single Window to streamline customs and port procedures. There is a strong demand for ICT integration, such as e-payments and traceability infrastructure, to meet global standards. • SME & Large Firm Outlook: Respondents highlighted the need for concessional financing and capacity building to retain skilled employees and foster innovation within the apparel, tea, and manufacturing sectors. _Note: Findings based on provisional survey data from 90 firms and 10 key informant interviews._

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### Access to Finance: A Structural Barrier to Sri Lankan Entrepreneurship 📈

Recent macroeconomic stabilization in Sri Lanka remains fragile, with long-term resilience dependent on structural reforms rather than short-term recovery. A critical constraint to economic transformation is the restricted access to formal finance for start-ups and SMEs. • Core Challenge Despite the importance of entrepreneurship for GDP growth and employment, a significant portion of talent remains underutilized due to financial exclusion. Reliance on personal savings or informal borrowing severely limits the growth potential of new enterprises. • Institutional Barriers • Commercial Banks: High risk-aversion, demanding stringent collateral and complex documentation. • Government Schemes: Hindered by bureaucratic delays, limited coverage, and low awareness among beneficiaries. • Capital Requirements: Essential needs for digital transformation, R&D, and regulatory compliance are often unmet due to a lack of structured credit. • Economic Impact Limited access to formal financial assistance leads to: • Reduced innovation and slower industrial diversification. • Inability for small players to compete with well-capitalized, technology-driven firms. • Prolonged economic stagnation and vulnerability to future shocks. • Outlook For sustainable development, strengthening financial inclusion through policy reform and innovative financing models must be a national priority.

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🚀 Fuel Prices Hiked Across the Board Amid Global Supply Concerns

The Government and Lanka IOC implemented a nationwide fuel price hike effective last night, driven by global crude oil prices surging past $ 100 a barrel due to Middle East supply disruptions. • New Fuel Price Breakdown (per Litre): • Petrol Octane 92: Rs. 317 (Up by Rs. 24) • Petrol Octane 95: Rs. 365 (Up by Rs. 25) • Auto Diesel: Rs. 303 (Up by Rs. 22) • Super Diesel: Rs. 353 (Up by Rs. 24) • Kerosene: Rs. 195 (Up by Rs. 13) • Economic Context: • The price revision impacts the transport and logistics sectors, essential for apparel & textiles and tea exports. • While global volatility remains high, the Central Bank of Sri Lanka (CBSL) notes the economy is now better positioned to absorb such shocks compared to the 2022 crisis. • The Government confirms that fuel stocks remain sufficient for the immediate term with scheduled shipments secured to prevent shortages. _Note: Prices based on official CEYPETCO and LIOC revisions as of March 10, 2026._

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Oil Price Surge & Middle East Conflict Threaten SL Recovery 📈

Frontier Research warns that escalating Middle East tensions and rising global oil prices pose significant risks to Sri Lanka’s inflation and tourism sector. • Energy & Inflation: Potential disruptions in the Strait of Hormuz may spike import costs for petroleum and liquefied petroleum gas (LPG). Higher costs are expected to transmit quickly into domestic inflation via increased transport fares and electricity tariffs. • Tourism Risks: Airline rerouting to avoid conflict zones is increasing travel times and ticket prices. These higher costs, coupled with global security concerns, could dampen arrival growth—a critical source of foreign exchange. • Geopolitical Impact: Sri Lanka’s proximity to the conflict was highlighted by the recent sinking of an Iranian vessel off Galle and the subsequent arrival of a second Iranian ship in Colombo, creating humanitarian and diplomatic sensitivities. • Economic Outlook: A sustained price surge threatens to weaken external sector earnings and complicate the national recovery process by increasing the import bill for fuel and essential goods. _Source: Frontier Research (Provisional Data)_

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### Fiscal Discipline Tested by Global Oil Surge 📈

Sri Lanka faces a significant test to its fiscal consolidation as the Middle East conflict pushes global oil prices above US$ 100 per barrel, a 33% increase over the 2025 average of US$ 74. • Fiscal Impact & Imports Current projections suggest a prolonged price hike could increase the national import bill by over US$ 1 Bn. In 2025, fuel accounted for 18% of total imports (approx. US$ 4 Bn). • Macroeconomic Buffers Economists note that Sri Lanka is currently better positioned to absorb shocks due to: Low inflation (1.6% as of February). Healthy money market liquidity exceeding Rs. 337 Bn. Sufficient fuel stocks maintained until April. • Policy Recommendations Energy Pricing: Experts urge the government to maintain cost-reflective pricing for fuel and electricity to avoid bailing out state utilities and straining the primary balance. Formula Refinement: Analysts suggest "de-amplifying" price shocks by refining how taxes and costs are embedded in current pricing formulas. • Sectoral Risks Beyond energy, a sustained conflict threatens tea exports, tourism arrivals, and worker remittances from the Gulf region, potentially slowing overall GDP growth. _Note: Based on provisional market data and expert commentary as of March 10, 2026._

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### CBSL Governor: Sri Lanka Armed with Buffers to Combat Global Shocks 📈

In a recent interview with Bloomberg, Central Bank Governor Dr. P. Nandalal Weerasinghe affirmed that Sri Lanka is better positioned to navigate external economic pressures due to strengthened macroeconomic fundamentals. • Policy Buffers & Inflation: The economy holds sufficient policy buffers, including robust foreign reserves. Current inflation stands at approximately 1.6%, significantly below the 5% target, providing ample room to absorb potential global price shocks. • Resilience Framework: The Governor highlighted three pillars for economic adjustment: Cost-reflective pricing mechanisms. Flexible inflation targeting. Exchange rate flexibility. • Global Context: While acknowledging risks from ongoing geopolitical conflicts, the Governor noted that significant external shocks may necessitate further discussions with the IMF. However, the current shift toward a flexible policy framework is expected to act as a primary stabilizer. • Outlook: Based on provisional data, the CBSL maintains that the shift from a rigid to a flexible policy stance has created the necessary space for the domestic market to withstand global uncertainties more effectively than in previous cycles. ---

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📈 Middle East Conflict Triggers Global Shift in Central Bank Policy

The escalating crisis between the U.S. and Iran has created a significant supply shock, forcing central banks to balance growth support against rising inflationary pressures from fuel costs. • Regional Impact & Monetary Shifts • Emerging Asia: Central banks in India, Thailand, and the Philippines face a "risky bet" on interest rates. While India seeks to support growth, a rush to the U.S. Dollar may necessitate currency intervention. • Stagflation Risks: Oil prices surging past US$ 110 per barrel heighten the threat of stagnant growth paired with high inflation across manufacturing-heavy economies. • East Asian Hubs: Manufacturing giants like South Korea and Japan are highly vulnerable to unstable raw material costs and global trade disruptions. • Economic Outlook & Trade-offs • Japan: Estimates suggest crude oil at US$ 110 could shave 0.39% off GDP growth. With inflation exceeding 2% for four years, the Bank of Japan has limited room to pause rate hikes. • Global Markets: Safe-haven demand for the dollar is intensifying as share markets plunge, complicating the outlook for ICT/BPM and export-oriented sectors dependent on stable exchange rates. • Summary Note Policy rethink is driven by the need to counter capital outflows and rising energy prices while avoiding a total collapse in domestic growth. Based on early market reactions on March 9, 2026.

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Iran Conflict Heightens Credit Risks for Emerging Markets 📈

A sustained conflict involving Iran and potential disruptions to the Strait of Hormuz pose significant credit risks to emerging market (EM) sovereigns, according to Fitch Ratings. While hydrocarbon exporters may see a fiscal windfall, net importers face multifaceted economic strains. • Energy & Fiscal Impact: High global energy prices directly threaten countries where net fossil fuel imports exceed 3% of GDP. Governments maintaining energy subsidies to shield consumers face increased fiscal deficits and inflationary pressure. • Regional Vulnerabilities: • South Asia: Countries like Pakistan and India are highly exposed due to heavy reliance on energy imports and critical remittance flows from the Gulf region. • Tourism & Trade: Egypt and Jordan face significant risks from potential disruptions to tourism and logistics. • Supply Chains: Potential shortages in aluminum and fertilizer inputs from the Gulf could impact global food production and manufacturing. • Financial Risks: Prolonged instability may trigger a stronger US dollar and weaken international debt markets. This increases the cost of servicing and refinancing debt, particularly for highly speculative-grade issuers. • Mitigating Factors: Many EM sovereigns frontloaded foreign-currency debt issuance in early 2026, providing a temporary buffer against market volatility. However, a closure of the Strait of Hormuz lasting beyond one month would lead to more substantial rating impacts. _Note: Analysis based on Fitch Ratings provisional impact assessments as of March 2026._

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Private Sector Credit Hits 11-Month Low in January 📉

Sri Lanka’s private sector credit growth saw a sharp deceleration in January 2026, marking the lowest levels of new borrowing in nearly a year as a post-cyclone slowdown deepens. • Overall Private Credit: New private sector borrowing fell to Rs. 82.6 Bn in January, an 11-month low. This follows a peak of Rs. 263 Bn in November 2025. • Debt Stock: Despite the monthly slowdown, the total outstanding private sector debt stock rose 26.3% YoY to Rs. 10.3 Tn. • Banking Sector Dynamics: • Lending from domestic commercial banks dropped to Rs. 108 Bn (a 9-month low). • Total domestic bank debt stock grew 29% YoY to Rs. 9.74 Tn, showing heavy reliance on local funding. • Overseas banking unit debt declined 6.6% YoY to Rs. 556 Bn. • Public Sector & SOEs: • Net credit to the Government edged down 0.6% to Rs. 8.3 Tn. • Credit to State-Owned Enterprises (SOEs) contracted sharply by 29% YoY to Rs. 422.7 Bn, signaling tighter lending controls for public corporations. • Market Context: Data suggests a disconnect between banks' reported "willingness to lend" and actual disbursements, which have slowed following the impact of Cyclone Ditwah. While SME and corporate credit appetite exists, realized lending reflects a more cautious start to 2026.

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### ⛽ Govt. to Maintain Cost-Reflective Fuel Pricing Amid Mid-East Tensions

The Sri Lankan Government has reaffirmed its commitment to cost-reflective pricing for energy and fuel, resisting subsidies despite rising global oil prices triggered by Middle East instability. • Fiscal Strategy & Inflation The Government will avoid using the Ceylon Petroleum Corporation (CPC) to artificially lower prices, aiming to protect state finances and debt market stability. Inflation is projected to remain manageable between 5%–6%, even with potential short-term spikes driven by supply-side energy costs. Macroeconomic stability is prioritized to keep interest rates low by reducing the need for government domestic borrowing. • Sectoral Impacts & Exports Tea: This sector is the most exposed, as the Middle East accounts for ~6% of Sri Lanka's total exports. Export Growth: While February performance is expected to be strong at 10%–12%, geopolitical tensions may dampen March growth by several percentage points. Competitiveness in manufacturing and logistics may face pressure from higher shipping and energy overheads. • Contingency Measures Instead of broad subsidies, the Government plans targeted support for vulnerable groups, such as the fisheries sector. Budgetary flexibility exists to reallocate capital expenditure to social safety nets if global conditions worsen significantly. Source: Based on provisional statements from the Ministry of Industry and Entrepreneurship Development (March 2026).

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⚠️ Fuel Rationing Urged Amid Middle East Crisis

Analysts are calling for immediate fuel rationing to prevent a complete stockout within 20 days, as regional conflicts push global oil prices above US$ 90 per barrel. While experts warn of supply chain "cluelessness," the President maintains that current inventories are stable. • National Stock Position: Diesel: 33 days of supply. Petrol: 28 days currently; expected to reach 40 days following a 35,000 MT shipment on March 7/8. Aviation Fuel: 49 days. Crude Oil: 44 days (including shipments at sea). • Supply Pipeline: Confirmed shipments via Sinopec, RM Parks, and IOC are scheduled between March 14 and March 28. Daily national requirement stands at approximately 1,800 MT, with the local refinery contributing 1,080 MT. • Global Market Volatility: Brent Crude: Rose 9.5% to US$ 92.69. WTI Crude: Rose 12% to US$ 90.90. Experts warn prices could hit US$ 150 if the Strait of Hormuz faces protracted closure, impacting energy security and transportation costs. • Operational Constraints: Total storage capacity at Kolonnawa and Muthurajawela is capped at 150,000 MT. The lack of a separate strategic reserve means operational and emergency stocks are held together, requiring precise drawdown management.

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Aravinda de Silva Calls for Further Lending Rate Cuts to Fuel 8% Growth 📈

Investor and entrepreneur Aravinda de Silva, speaking at the Almas Securities Investor Forum, urged for a further reduction in interest rates to stimulate the economy and support new business creation. • Banking & Finance: Criticsed the banking sector for prioritizing "enormous profits" through Government securities rather than funding the real economy. He highlighted the difficulty SMEs and young entrepreneurs face in accessing credit. • Current Market Indicators: Private sector borrowings rose 25.2% in 2025 to a record Rs. 10.2 trillion. Average Weighted Prime Lending Rate: ~8%. Average Weighted SME Lending Rate: 12%. New SME Lending Rate: ~11%. • Key Economic Reforms: Stressed the urgent need to expedite reforms in labour, energy, and customs. Failure to liberalize trade and create a level playing field may result in lost growth opportunities. • High-Growth Sectors: Identified logistics, mineral, digitization, and sports as areas with high investment potential. He believes digitization is critical for scaling the private sector to a global level. • Outlook: Projected that with the right reforms, Sri Lanka has the potential to achieve 7% to 8% GDP growth. De Silva recently launched the Sri Lanka Opportunity Fund with a $100 million target to support local startups.

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Market News

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📈 CSE Rebounds 2.17% as Global Oil Prices Ease

The Colombo stock market staged a sharp recovery yesterday, reversing losses from recent panic selling as global oil prices retreated below US$ 95 per barrel. • Market Performance: The ASPI surged by 2.17% (+474.38 points) to close at 22,378.52, while the S&P SL20 rose 2.47% to 6,280.42. Total turnover reached Rs. 4.48 Bn with 236 million shares traded. • Sector Drivers: Gains were broad-based, led by the banking and capital goods sectors. The capital goods index climbed 2.96%, bolstered by heavy trading in Softlogic Holdings. The food, beverage & tobacco sector followed with a 2.69% increase. • Key Gainers: Top blue-chip contributors included Hatton National Bank (HNB), Sampath Bank (SAMP), Commercial Bank (COMB), John Keells Holdings (JKH), and Dialog Axiata (DIAL). Notable price appreciation was also seen in Softlogic Capital and Renuka Hotels. • Investor Activity: While retail and HNW participation remained steady, foreign investors were net sellers, recording a net outflow of Rs. 155.4 Mn. • Economic Context: The rebound mirrors positive trends in Asian markets following signals of potential de-escalation in Middle East tensions, directly impacting energy cost expectations for the Sri Lankan economy.

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Oil Price Slump Triggers Secondary Bond Market Relief Rally 📈

A sharp decline in global oil prices (Brent crude falling below US$ 95) has sparked a significant relief rally in Sri Lanka’s Secondary Government Bond market, easing inflation fears for the energy sector. • Market Performance: Yields compressed across the curve as institutional buying interest surged. Notable trades include the 01.06.33 maturity dropping 10bps to 10.50% and the 15.02.28 maturity trading at 9.10%. • Macroeconomic Buffer: The rally is supported by strong fundamentals, with Gross Official Reserves hitting a six-year high of US$ 7.28 Bn in February. The current account recorded a surplus of US$ 369.7 Mn in January 2026. • Currency & Liquidity: The Sri Lankan Rupee appreciated to Rs. 310.90/311.00 against the USD. Market liquidity remains ample with a net surplus of Rs. 335.36 Bn. • Upcoming Auction: Focus shifts to today’s Rs. 130 Bn T-Bill auction. The offered amount is lower than the maturing volume of Rs. 149.39 Bn, following a heavily undersubscribed auction last week. _Data based on Wealth Trust Securities and CBSL provisional figures._

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Global Oil Prices Plunge 6% Amid De-escalation Hopes 📉

Oil prices retreated sharply on Tuesday after hitting three-year highs, as U.S. President Donald Trump predicted a swift end to Middle East tensions, easing fears of prolonged global supply disruptions. • Overall Figures: - Brent crude futures fell 6.6% (US$ 6.51) to US$ 92.45 a barrel. - U.S. WTI crude dropped 6.5% (US$ 6.12) to US$ 88.65 a barrel. - This follows a surge where prices peaked near US$ 120 on Monday. • Market Drivers: - President Trump indicated the conflict involving Iran is "very complete," suggesting a shorter timeframe than initially estimated. - Reports indicate the U.S. is considering easing energy sanctions on Russia and releasing emergency crude stockpiles to stabilize the market. - Despite threats from Iran’s Revolutionary Guards to halt regional exports, prices remained under downward pressure. • Supply Context: - Significant production cuts remain a factor, with Iraq slashing output by 70% and Saudi Arabia beginning trims. - Analysts expect high volatility to continue, with a projected trading range between US$ 75 and US$ 105. • Impact on Sri Lanka: - Lower global oil prices are critical for Sri Lanka’s transportation and manufacturing sectors, directly influencing the national fuel bill and inflation trajectories.

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Market Plunge: ASPI Drops 3.5% as Global Oil Spikes 📈

The Colombo Stock Exchange (CSE) faced significant downward pressure on Monday as global oil prices surged above US$ 115 per barrel, triggering panic selling across the board. • Market Indices: The All Share Price Index (ASPI) fell by 3.51% (797.77 points) to close at 21,904.14, its lowest level since December 2025. The S&P SL20 also declined by 3.65%. • Sector Impact: • Banking: The primary laggard, contributing 32% of turnover but losing 3.45% in its sector index. Key declines included Commercial Bank (-4.1%) and Sampath Bank (-3.4%). • Capital Goods: Down 3.82%, heavily impacted by losses in John Keells Holdings (JKH) (-4.3%) and ACL Cables (-3.1%). • Energy: Bucking the trend, Lanka IOC saw price appreciation of Rs. 1.75 as global crude prices rose. • Trading Activity: Market turnover remained healthy at Rs. 5.8 Bn. However, market breadth was overwhelmingly negative with 262 decliners against only 6 gainers. • Investor Sentiment: Selling was largely driven by retail investors reacting to Middle East tensions. Foreign investors remained net sellers with an outflow of Rs. 6.1 Mn, despite CBSL assurances regarding the economy’s resilience to energy shocks.

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📉 Pakistan Stock Market Plunges Amid Middle East Tensions

Trade was suspended at the Pakistan Stock Exchange (PSX) after a massive early-morning sell-off triggered by escalating geopolitical instability in the Middle East. • Market Impact: The benchmark index plummeted by 9,780 points during the opening session, settling at 147,715.95 points. • Percentage Change: This represented a sharp 6.21% decrease compared to the previous close. • Trading Halt: PSX authorities enforced a mandatory 45-minute trade suspension after the index breached the 5% circuit breaker threshold. • Economic Context: While specific to Pakistan, such regional volatility often impacts South Asian investor sentiment and creates ripple effects across emerging market portfolios and energy costs.

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Global Oil Prices Surge Past US$ 100 Amid Iran Conflict 📈

Global energy markets have been rattled as crude prices eclipsed the US$ 100 threshold for the first time in over three years, driven by escalating conflict in the Middle East. • Market Impact: Brent Crude: Surged 16.5% to US$ 107.97 per barrel. West Texas Intermediate (WTI): Rose 16.9% to US$ 106.22 per barrel. Natural Gas: Increased by 4.6% to US$ 3.33 per 1,000 cubic feet. • Supply Disruptions: The Strait of Hormuz, accounting for roughly 20% of global oil shipments (15 million barrels/day), faces a near-total halt in tanker traffic due to missile and drone threats. Major producers including Iraq, Kuwait, and the UAE have cut production as export capacities are throttled by the conflict. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, sustained prices above US$ 100/barrel pose significant risks to Sri Lanka's trade balance and domestic inflation. Rising energy costs typically impact the manufacturing and transportation sectors, potentially increasing the cost of production for key exports like tea and apparel. • Global Outlook: Financial markets remain volatile; S&P 500 and Dow futures are pointing toward a lower opening as investors weigh the impact of higher energy costs on global consumption and inflation.

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CSE Ends Week in Red Amid Mideast Tensions 📉

The Colombo stock market concluded a volatile four-day trading week in negative territory, failing to recover from a significant mid-week plunge triggered by regional geopolitical conflict. • Overall Market Performance: The All Share Price Index (ASPI) dropped 4.34% (1,032.15 points) during the week to close at 22,701.91. The S&P SL20 followed suit, declining 4.14% (275.22 points) to finish at 6,360.75. • Sector & Stock Impact: Declines were driven primarily by index-heavyweights in the banking and diversified holdings sectors. Key laggards included JKH, HNB, SAMP, HAYL, and MELS. The capital goods sector dominated daily turnover at 31%, followed by insurance and diversified financials at a combined 29%. • Investor Activity: • Foreign Investors: Recorded a net outflow of Rs. 791.2 million for the week, with yesterday’s net selling reaching Rs. 826 million. • High Net Worth (HNW): Activity remained significant, with off-board transactions accounting for 34.6% (Rs. 1.7 Bn) of total turnover. • Top Turnover: Led by ACL (Rs. 924 Mn), CINS (Rs. 624 Mn), and HVA (Rs. 226 Mn). • Market Breadth: Negative sentiment prevailed as 160 decliners outweighed 80 gainers. Total daily turnover remained robust at over Rs. 5 Bn, despite the bearish trend.

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## 📈 Oil Prices Stabilize Despite Strait of Hormuz Risks

Fitch Ratings suggests the effective closure of the Strait of Hormuz following the Iran conflict is likely temporary, mitigating long-term impacts on energy costs and the global economy. • Market Impact & Pricing • Brent oil price forecast remains at US$ 63/bbl for 2026. • Global supply growth (2.4 MMbpd) continues to outpace demand (0.8 MMbpd). • Global inventories reached 8.2 Bn barrels at end-2025, enough to cover a 400-day halt in Strait shipments. • Supply Chain & Logistics • The Strait handles 20 MMbpd, representing 25% of global seaborne oil trade. • Key alternative routes include Saudi Arabia's 5 MMbpd East-West pipeline and UAE’s 1.5 MMbpd bypass to Fujairah. • Major importers China and India receive 50% of the volumes transiting the Strait. • Key Risks for Sri Lanka • While oversupply limits price hikes, any protracted blockage or infrastructure damage would trigger volatility. • As a net oil importer, Sri Lanka remains sensitive to "geopolitical risk premiums" affecting transportation and power generation costs. • Sector Outlook • Stability in global oil prices is a positive signal for Sri Lanka’s manufacturing and logistics sectors, potentially easing inflationary pressure on fuel-dependent industries.

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Global Market Turmoil: Oil Surges Amid Middle East Escalation 📈

• Market Overview: Global equity markets faced a severe rout this week as the U.S.-Israel-Iran conflict intensified. The MSCI Asia-Pacific index is on track for its sharpest weekly decline since 2020 (-6.6%), driven by a shift toward cash and safe-haven assets. • Energy & Inflation: Oil prices have seen a massive spike due to supply risks. Brent crude rose to approximately US$ 83 per barrel from US$ 69 just a week ago. For Sri Lanka, sustained upward pressure on energy prices typically threatens headline inflation and increases the cost of imports. • Currency & Rates: The US Dollar recorded its largest weekly gain in 16 months (+1.4%). Expectations for central bank rate cuts have been slashed as investors fear a resurgence in inflation. U.S. 10-year Treasury yields jumped 18 bps this week to 4.14%, tightening global liquidity. • Sector Impact: • Technology: High-growth stocks in Asia tumbled (South Korea's Kospi down -10.5%) as investors booked profits. • Commodities: Gold fell 3.7% weekly to US$ 5,078.88 per ounce, pressured by the stronger dollar and rising bond yields. • Economic Outlook: Analysts warn that direct infrastructure damage to Gulf producers could trigger a global recession. For emerging markets like Sri Lanka, these shifts suggest a challenging environment for debt servicing and foreign exchange stability if global funding conditions continue to tighten.

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📈 Secondary Bond Yields Hold Steady Amid Middle East Tensions

The secondary bond market consolidated yesterday with yields remaining broadly stable as investors adopted a cautious stance. Activity levels were moderate, influenced by ongoing geopolitical concerns in the Middle East. • Secondary Bond Market • 15.01.28 maturity traded at 8.95%. • 15.10.29 & 15.12.29 maturities ranged between 9.59%–9.60%. • Long-term yields: 01.06.33 at 10.50% and 15.06.35 between 10.77%–10.795%. • Total transacted volume (Bonds/Bills) for March 4: Rs. 20.40 Bn. • Money Market & Liquidity • Net liquidity surplus: Rs. 336.51 Bn. • CBSL drained Rs. 75.00 Bn via overnight repo auction at a weighted average rate of 7.57%. • Overnight call money and repo rates stood at 7.67% and 7.70%, respectively. • Forex Market • The USD/LKR spot rate closed at Rs. 311.00/311.50, slightly weaker than the previous close of Rs. 310.30/310.60. • Total USD/LKR traded volume for March 4: US$ 96.75 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._

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📈 CSE Rebound Extends for Second Session Following Record Dip

The Colombo Stock Exchange continued its recovery for the second consecutive day as value investors capitalized on price corrections following earlier panic selling linked to Middle East tensions. • Market Performance Indices ASPI: Closed at 22,833.53, up by 1.13% (+256.12 points). S&P SL20: Ended at 6,425.80, up by 1.07% (+68.14 points). • Turnover and Liquidity Total Market Turnover reached nearly Rs. 5.7 Bn with over 330 million shares traded. High Net Worth (HNW) and institutional participation were significant, notably in HNB Finance, which contributed Rs. 1.1 Bn to the day's total. • Sector Highlights Diversified Financials: Led daily turnover with a 39% share; sector index rose 1.61%. Key movers included HNB Finance (+Rs. 1.30), LCB Finance (+Rs. 1.70), and LOLC Holdings (+Rs. 12.00). Banking: The second-highest contributor (combined with Food, Beverage & Tobacco for 30% of turnover). Gains were led by Commercial Bank (+Rs. 1.75), DFCC, and NDB. Blue-chips: John Keells Holdings (JKH) and Lanka Milk Foods (+Rs. 6.80) remained top contributors to the positive momentum. • Investor Sentiment Foreign investors emerged as net buyers with a net inflow of Rs. 189.4 Mn. While retail participation remained moderate, the broader market breadth was positive, supported by a robust macroeconomic recovery and attractive valuation discounts in fundamentally sound stocks.

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CSE Milestone: CDS Accounts Surpass 1 Million Mark 📈

The Central Depository Systems Ltd. (CDS), a subsidiary of the Colombo Stock Exchange, has officially crossed the 1 million registered accounts milestone ahead of its 35th anniversary this September. • Market Expansion: The threshold reflects aggressive broad-basing of the retail investor market over the last 5 years, driven by the comprehensive digitalisation of the CSE. • Digital Adoption: Growth is attributed to tools like the CSE Mobile App and the CDS eConnect portal, which shifted the market from paperwork-heavy processes to seamless, real-time digital access. • Asset Security: Following a major dematerialisation drive, the CDS now holds 97% of listed equity and 100% of corporate debt in scripless (electronic) form, virtually eliminating risks related to physical certificates. • Diversification: Beyond its core depository role, the Corporate Solutions Unit (CSU) now manages registrar services, Initial Public Offerings (IPOs), and dividend distributions for both listed and unlisted companies. • Future Outlook: A newly formed Research and Development (R&D) unit is tasked with fostering international collaborations and adapting to global financial sector evolutions. This achievement underscores the resilience of Sri Lanka’s capital market infrastructure and its transition into a modern, investor-friendly ecosystem.

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Product & Service Launches / Business Expansions

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### BYD ATTO 1 Record Shipment Bolsters Sri Lanka’s EV Market 📈

John Keells CG Auto (JKCG Auto) has announced the arrival of 835 units of the BYD ATTO 1, marking the largest single consignment for this model to date. This influx aims to meet high consumer demand following its November 2025 launch. • Market Dominance: BYD has secured a leading position in the brand-new vehicle segment, accounting for approximately 37% of all brand-new registrations and over 70% of cumulative electric vehicle (EV) registrations in 2025. • Product Specifications: The ATTO 1 is a fully electric hatchback featuring Blade Battery technology, a 300 km range per charge, and a 5-star ANCAP safety rating. It is positioned as an accessible New Energy Vehicle (NEV) for the mass market. • Economic Impact: The rapid scaling of the automotive and NEV sectors reflects a significant shift in consumer preference toward sustainable transport since the resumption of vehicle imports. • Availability: A portion of the 835 units is available for immediate delivery, addressing the backlog of bookings and growing public inquiries. _Note: Figures based on 2025 registration data and current shipment arrivals._

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ComBank and Ideal Motors Partner for Mahindra XUV 3XO Leasing 📈

• Commercial Bank of Ceylon has entered a strategic partnership with Ideal Motors Ltd to offer exclusive leasing packages for the Mahindra XUV 3XO passenger vehicle. • Financing Benefits: • Preferential interest rates and concessions on documentation charges. • Complimentary credit card with the first-year annual fee waived. • Accessible via the Bank’s island-wide branch network. • Vendor Perks (Ideal Motors): • Special vehicle discounts and free registration. • 10% discount on spare parts and first three services labor-free. • Timeline & Impact: • The promotion runs until 28 February 2027. • Designed to enhance mobility solutions and support consumer aspirations in the passenger vehicle segment through flexible, income-linked repayment structures. _Source: Based on official partnership announcement (March 2026)._

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CIOB Construction and Sustainable Energy Expo 2026 Set for March 20-22 📈

The Ceylon Institute of Builders (CIOB) has announced the 11th edition of the Construction and Sustainable Energy Expo, scheduled for March 20-22 at the BMICH, Colombo. This premier event serves as a critical marketplace for Sri Lanka’s infrastructure and renewable energy sectors. • Event Overview The expo focuses on the full construction value chain, emphasizing industry resilience and investment-led growth. It aims to connect manufacturers, contractors, and engineers with high-quality trade visitors and decision-makers. • Key Sector Focus • Construction & Building Materials: Coverage of the entire value chain including heavy machinery. • Sustainable Energy: Special emphasis on solar, renewable energy, and green construction solutions to align with global sustainability trends. • Specialized Segments: Dedicated focus on tile & sanitaryware, hardware, and smart building technologies. • Strategic Importance As a hub for ICT/BPM integration in smart buildings and a driver for employment in the industrial machinery sector, the expo facilitates networking and technology transfers essential for national development. • Industry Support The event is backed by major stakeholders including St. Anthony’s Ventures (Main Sponsor), Tokyo Cement Group, and Home Lands Skyline (Platinum Sponsors), alongside Alumex PLC and Taian Lanka Steel (Gold Sponsors).

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📈 Millennium IT ESP Secures Rs. 2.2 Bn Oracle Project for Sri Lanka Customs

The Cabinet of Ministers has approved a major contract for the supply and installation of an Oracle Exadata X11M system and related software to modernize the digital infrastructure of Sri Lanka Customs. • Project Value: Rs. 2,197.96 million (approx. Rs. 2.2 Bn). • Implementation Period: Awarded for a duration of eight years. • Vendor Selection: Awarded to Millennium IT ESP (Private) Limited following a National Competitive Bidding (NCB) process. • Procurement Details: Out of three initial bids, only one bidder met the specific technological requirements. The final approval followed recommendations from the Higher Level Procurement Committee and a proposal by the President as the Minister of Finance. This investment in the ICT/BPM and technology infrastructure sector aims to enhance the data processing capabilities of Customs, a critical revenue-generating body for the national economy. _Note: Based on official Cabinet approval data released March 2026._

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DCSL Breweries Lanka Expands Aliya Beer to Global Markets 📈

• DCSL Breweries Lanka (Pvt) Ltd has officially launched its latest brand, Aliya Beer, into international export markets following a successful local rollout. • The brand is available in both Strong and Lager variants, specifically crafted to cater to global palates while maintaining a distinct Sri Lankan identity and heritage. • This expansion marks a strategic milestone for the company to diversify its export portfolio and build brand awareness for Sri Lankan beverages in key international regions. • The move strengthens DCSL’s position as a diverse brewer, adding a homegrown brand alongside its existing international portfolio which includes Heineken and Tiger, and local brands like Bison. • The initiative aims to promote the "Spirit of Sri Lanka" globally, focusing on the quality of local manufacturing and brewing traditions to cultivate a loyal international consumer base.

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📈 Mercedes-Benz Fashion Week SL Unveils 3-Year Strategic Vision through 2028

The Mercedes-Benz Fashion Week Sri Lanka (MBFW SL) has announced a long-term roadmap to 2028, signaling robust institutional confidence in the island's creative economy and positioning Colombo as a regional hub for design and luxury lifestyle. • Event Calendar & Stability To ensure market visibility and global participation, fixed dates have been set for the next three years: 2026: 6 – 11 October 2027: 5 – 10 October 2028: 3 – 8 October • Strategic Alliances The platform is presented by AOD (Academy of Design) and powered by DIMO, the sole authorized agent for Mercedes-Benz in Sri Lanka. This partnership links the local industry to the global Mercedes-Benz fashion ecosystem, fostering international designer participation and buyer engagement. • Key Corporate Partners Cinnamon Life at City of Dreams: Official Host Venue, integrating fashion into Sri Lanka’s premier integrated resort and tourism landscape. Sampath Bank Private Banking: Official Banking Partner, focusing on creative entrepreneurship and the emerging luxury economy. Wijeya Newspapers: Exclusive Media Partner, providing multi-platform national coverage across print and digital. • Economic Impact The roadmap focuses on high-density growth areas: strengthening retail links for local designers, deepening creative technology collaborations, and driving diversification within the apparel & textiles sector toward high-value branding.

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SriLankan Airlines Resumes Daily Flights to Riyadh and Dubai ✈️

The national carrier, SriLankan Airlines, has announced the resumption of regular daily operations to two major Middle Eastern hubs following a temporary suspension due to regional conflict. • Riyadh (Saudi Arabia): Daily flights resume tonight, March 9. • Dubai (UAE): Daily services commence tomorrow, March 10. Operational Details: • Colombo–Riyadh: Departs 18:15 (UL265); Returns 22:35 (UL266). • Colombo–Dubai: Departs 12:40 (UL231); Returns 17:00 (UL232). This resumption is a vital step for aviation and labor migration sectors, ensuring the movement of the Sri Lankan workforce and supporting tourism connectivity. The airline noted that while flights have resumed, authorities will continue to monitor regional safety conditions to prioritize passenger and crew wellbeing. 📈

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LankaPropertyWeb Launches AI-Driven 'Apartment Finder' Tool 📈

• Real Estate Technology: LankaPropertyWeb (LPW) has introduced a project-centric 'Apartment Finder' tool to streamline the search process within Sri Lanka’s largest apartment database, moving away from traditional scattered listings. • Financial Integration: A key feature allows users to filter properties based on home loan repayment values rather than just total price, integrating monthly affordability directly into the search experience. • Market Transparency: The tool offers three distinct viewing modes: • Map View: First-of-its-kind in Sri Lanka for location-based searching. • Table View: A data-driven approach for requirement matching. • List View: Enhanced project and unit-level information. • Data Intelligence: Developed by LPW’s Market Intelligence Team, the tool uses proprietary mapping to eliminate duplicate listings and group individual units under their respective developments for a cleaner user interface. • Industry Recognition: In 2026, the platform received multiple awards, including Best Use of AI-Powered Technology and Most Innovative PropTech Solution in Sri Lanka, highlighting the sector's shift toward digital transformation and ICT/BPM integration in property markets.

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UAE-Based Web3Interactive & Immersive Labs Launch Real Estate Tech in Sri Lanka 📈

• Overall Strategy: Dubai-headquartered Web3Interactive and its R&D arm, Immersive Labs, are introducing advanced Virtual Reality (VR) and Augmented Reality (AR) visualization tools to the local market. The move aims to "leapfrog" traditional property marketing by applying proven Middle Eastern sales acceleration strategies. • Market Context: The launch leverages Sri Lanka’s steady 2025 real estate recovery, fueled by macroeconomic stabilization and lower policy rates. The initiative specifically targets Foreign Direct Investment (FDI) and the Global Diaspora, who currently account for a significant share of online property searches. • Key Tech Features: • Immersive walkthroughs allowing investors to experience properties pre-construction. • High-fidelity architectural visualizations designed to meet global standards. • Integration of ICT/BPM engineering talent from Sri Lanka with Middle Eastern domain expertise. • Economic Impact: By centralizing engineering in Sri Lanka while serving the MENA region, the group strengthens the local technology and software exports sector. For developers, these tools are expected to increase conversion rates and strengthen the appeal of Sri Lankan assets to international buyers. • Future Outlook: The group plans to expand these immersive solutions across broader development portfolios and diversify into other industry sectors beyond real estate. _Note: Based on current industry reports and company disclosures._

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DMASL Named Official Festival Partner at ADFEST 2026 Thailand 📈

The Digital Marketing Association of Sri Lanka (DMASL) has secured a strategic partnership with ADFEST 2026, Asia’s premier creative and advertising festival, scheduled for March 19–21 in Thailand. • Strategic Recognition: This partnership positions Sri Lanka’s digital marketing and creative sectors within a major Asia-Pacific platform, fostering cross-border collaboration and regional connectivity. • Industry Impact: The move aims to elevate Sri Lankan talent and innovation on the international stage, aligning with DMASL's goal to establish the country as a regional hub for digital innovation. • Regional Integration: ADFEST leadership highlighted the "passion and ambition" of Sri Lanka’s digital community, emphasizing the role of emerging markets in the evolving Asian creative landscape. • Future Outlook: The collaboration serves as a precursor to the DMASL Digital Summit Asia – Sri Lanka 2026, focusing on professional development and strategic thinking within the ICT/BPM and creative services ecosystem. This milestone reinforces the growth of Sri Lanka's service exports and its commitment to global industry standards.

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Sri Lankan AI Medical Device "JENDO" Piloted in Bahrain 📈

The Embassy of Sri Lanka in Bahrain, in collaboration with the ICTA, has successfully facilitated the pilot testing of a home-grown cardiovascular screening device at the King Hamad American Mission Hospital. • Innovation: The device, trademarked as JENDO, uses Artificial Intelligence for the non-invasive early detection of cardiovascular conditions and vascular abnormalities through physiological signal analysis. • Pilot Details: Conducted from February 23–25, 2026, the trial focused on clinical integration and usability within Bahrain’s largest American Mission Hospital branch. • Economic Context: Developed by a team led by Keerthi Kodithuwakku, the project highlights the expansion of Sri Lanka's ICT/BPM and digital health sectors into international markets. • Recognition: The technology previously won the Presidential Gold Award in 2025, signaling a shift toward high-value, scalable medical exports for the Sri Lankan economy. • Strategic Impact: This collaboration underscores Sri Lanka's growing capacity for medical innovation and its efforts to commercialize indigenous technology globally.

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Emirates Restores 60% of Route Network Following Airspace Re-opening ✈️

Emirates is rapidly scaling up operations following a partial re-opening of regional airspace, with a target to restore 100% of its network in the coming days. • Operational Status: As of 6 March, the airline processed approximately 30,000 departing passengers from Dubai. By tomorrow (7 March), it expects to operate 106 daily return flights to 83 destinations, covering nearly 60% of its global network. • Regional Market Scaling: • India: Significant capacity deployment with 22 daily flights serving all nine Indian gateways by 7 March. This is a critical corridor for transit labor and regional trade. • United Kingdom: Operating 11 daily flights across five airports to meet high travel demand. • United States: Maintaining connectivity via seven American gateways. • Economic Context: The restoration of these routes is vital for Sri Lanka’s tourism and export logistics, as Dubai serves as a primary global hub for apparel & textiles and perishable goods (such as tea and seafood) destined for Europe and the Americas. • Advisory: Operations remain subject to airspace availability. Passengers are advised to travel to airports only with confirmed bookings as the airline prioritizes earlier bookings.

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Awards & Recognitions

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Ceylon Planters’ Provident Society (CPPS) Celebrates Centenary 📈

The Ceylon Planters’ Provident Society (CPPS) officially marked 100 years of operation on 10 March 2026, transitioning from a voluntary scheme into a vital financial pillar for Sri Lanka’s plantation sector. • Growth & Membership: Established in 1926 in Kandy with 331 members, the fund has expanded to serve over 1,700 members today, outperforming its initial 1946 target of 750. • Sector Impact: As one of the first private provident funds in the country, it provides long-term security for professionals in the tea, rubber, and coconut industries, which are central to national employment and exports. • Service Evolution: Beyond basic retirement savings, the society now provides housing loans, educational assistance, and life insurance, operating as a modern financial support system. • Regulatory Context: Originally a voluntary initiative by the Planters’ Association of Ceylon, the CPPS is now a legally mandated fund under the Employees’ Provident Fund (EPF) Act. • Historical Milestone: The fund’s endurance over a century highlights its role in sustaining the human capital of the agriculture and plantation industries through periods of significant economic and regulatory change. The CPPS continues to be managed by the Planters’ Association of Ceylon, maintaining its commitment to integrity and financial stability for future generations of planting professionals.

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📈 Browns Plantations Secures 13 Major Accolades in 2025

Browns Plantations has marked a milestone year, receiving 13 national and regional awards for sustainability, operational excellence, and leadership. The recognition underscores the company’s shift toward integrating ESG (Environmental, Social, and Governance) standards into its core tea and agricultural operations. • Global & Regional Recognition At the Asia Awards 2025 (India), the firm won Asia’s Sustainable Transformation and Plantation Operational Excellence awards. Executive Chairman Dr. Pradeep Uluwaduge was named Asia’s Chairman of the Year. • Key Sustainability Milestones Hapugastenne Plantations became the first in the world to receive the Control Union Deforestation-Free Standard (DFS) certification. This ensures compliance with the EU Deforestation Regulation (EUDR), critical for maintaining access to premium European tea markets. • National Awards & Governance Named Eco-Conscious Plantation of the Year at the People’s Excellency Awards 2025. Received four honors at the Sri Lankan Sustainability Awards, including Sustainable Technology and Preservation of Biodiversity. • Strategic Impact The accolades highlight the sector's move toward digital transformation and responsible enterprise. As a major employer and exporter, Browns Plantations is positioning its sustainability-led business model as a benchmark for the wider plantation industry to ensure long-term resilience and market competitiveness.

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Ceylon Agro Industries (Prima) Honoured at National Export Awards 2025 📈

Ceylon Agro Industries (Prima Group Sri Lanka) secured the Bronze Award in the Confectionery Products – Large Sector category at the prestigious National Export Awards, organised by the National Chamber of Exporters (NCE). • Key Achievement: Recognized as a first-time entrant in the highly competitive Large Sector, marking a significant milestone for its flagship brand, Prima KottuMee. • Export Footprint: The brand currently exports to over 25 countries, including major markets such as Australia, Italy, the UAE, the UK, and the Maldives. • Economic Impact: The award highlights the company’s role in strengthening Sri Lanka’s export profile through quality manufacturing and innovation in the food and beverage sector. • Strategic Outlook: Leveraging this recognition to further its position as a global ambassador for Sri Lankan exports and expanding its international distribution network.

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Sri Lanka’s Heritage Sites Rank in Global Top 50 for 2026 📈

Sri Lanka has secured a prominent position in the "50 Best Heritage Travel Destinations in the World for 2026" by Travel and Tour World (TTW). The ranking highlights the country’s ancient Buddhist civilization and architectural excellence as key drivers for the global growth in heritage tourism, which is currently seeing a 6.4% YoY increase. • Top Ranked Sri Lankan Sites: Sigiriya (Ancient City) Temple of the Tooth Relic (Kandy) Old Town of Galle & its Fortifications Golden Temple of Dambulla Ancient Cities of Anuradhapura & Polonnaruwa • Regional Connectivity: The report specifically highlights Ram Setu (Adam’s Bridge) connecting Mannar, Sri Lanka, to India as a site of "profound religious and cultural significance," bridging mythology and history. • Economic Context: Heritage tourism is identified as a vital driver for local economic development. The integration of cultural landmarks with natural treasures like the Sinharaja Forest Reserve and Central Highlands positions Sri Lanka as a diverse destination for immersive travel. • Global Market Trends: Sri Lanka features alongside heritage giants like India, Italy, and Egypt. The rankings are based on editorial research and the preferences of 23 million readers, signaling strong future demand for Sri Lanka’s cultural exports. _Data based on TTW 2026 Global Heritage Rankings._

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MullenLowe Sri Lanka Dominates Effie Awards 2025 📈

MullenLowe Sri Lanka has reaffirmed its market leadership by being named Effie Agency of the Year for 2025. This marks their third consecutive win and their eighth title within the last decade, reflecting consistent creative effectiveness in the advertising and marketing sector. • Award Tally: The agency secured a total of 21 accolades at the ceremony held on March 3, 2026: 1 Gold (Celcius) 3 Silver (Watawala Tea, Atlas Axillia, Asian Paints) 3 Bronze (Anlene, Unilever, Maliban) 14 Finalist Awards • Strategic Impact: The wins highlight MullenLowe’s ability to drive commercial growth across diverse industries, from FMCG and tea to manufacturing. The recognition underscores the agency's role in supporting national brands like Watawala and Maliban through strategic communication that impacts market share and consumer behavior. • Market Standing: Beyond the local Effies, MullenLowe was also recently named Agency of the Year by Campaign Asia, signaling strong regional competitiveness for Sri Lanka's creative services and ICT/BPM adjacent sectors. _Source: Based on data published March 6, 2026._

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New Media Solutions Dominates Effie Awards Sri Lanka 2026 📈

Homegrown agency New Media Solutions emerged as the most awarded traditional and digital corporate communications firm at the Effie Awards 2026, securing multiple wins for high-impact marketing campaigns. • Key Award Wins: • 2 Silver Effies: ‘Daintee Gingerbread House’ (Sunshine Consumer Lanka Ltd) • 2 Bronze Effies: ‘My Zesta Story’ (Zesta) • Multiple Merit Finalists: Campaigns for Softlogic Life Insurance PLC, including the #LetsChangeTheStory initiative. • Sector Expertise: The agency demonstrated versatility across Insurance, Beverages, and Consumer Goods, winning in categories such as seasonal marketing, social media, and social impact communications. • Economic Context: The recognition of locally-led Brand Communications and Digital Media agencies highlights the growing sophistication of Sri Lanka’s ICT/BPM and creative services sector, emphasizing the shift toward measurable, data-driven marketing effectiveness. • Strategic Leadership: Led by CEO Nilupa Sanjaya Liyanage, the firm integrates media strategy and Public Relations to drive tangible business results for both local and multinational brands.

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LankaPay Technnovation Awards 2026: Honoring "Inclusive FinTech" Pioneers 📈

LankaPay has announced the 8th edition of Sri Lanka’s premier payment technology awards, scheduled for 24 March 2026. The event recognizes excellence in digital payment innovation across banks, NBFI’s, and ICT/BPM service providers. • Core Theme & Scope: The 2026 theme, "Inclusive FinTech," focuses on expanding financial access to remote communities. The awards evaluate performance data from 1 January 2025 to 31 December 2025 across 12 categories, including financial inclusivity, digital government payments, and cross-border transactions. • Strategic Importance: The initiative reinforces the ICT/BPM sector's role in national digitalization. By benchmarking secure and convenient payment solutions, the awards support economic stability and the integration of more Sri Lankans into the formal digital economy. • Key Participation & Governance: • Chief Guest: CBSL Governor Dr. Nandalal Weerasinghe. • Judging: Led by Rajeeva Bandaranaike (CEO, Colombo Stock Exchange), ensuring a rigorous, independent audit of digital performance. • Partners: Major global players including Mastercard, UnionPay, and Alipay+ are strategic sponsors, signaling international confidence in Sri Lanka's fintech ecosystem. • Public Engagement: Includes an online poll for the "Most Popular Digital Payment Solution of the Year 2025," bridging the gap between high-tech innovation and everyday consumer usage.

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## Energy Efficiency as National Priority for Economic Growth 📈

Prime Minister Dr. Harini Amarasuriya emphasized that enhancing energy efficiency is a core pillar for strengthening the national economy and saving foreign exchange. Speaking at the Sri Lanka National Energy Efficiency Awards, the PM linked effective energy management directly to national development and international climate commitments. • Strategic Goals & Policy Renewable Energy: Government target to increase the renewable share to 70% by 2030. Global Commitments: Alignment with the Paris Agreement to reduce greenhouse gas emissions and ensure long-term energy security. Sector Reforms: Restructuring of the Ceylon Electricity Board (CEB) has entered its final phase to eliminate inefficiencies and irregular practices. • Key Award Winners Outstanding Energy Manager: Jeewaka Thushara (World Trade Centre Colombo). Gold Award Winners: Includes National Cleaner Production Centre, Forbes Marshall Lanka, World Trade Centre Colombo, BiC, DENTA Manufacturing, and MAS Fabrics Thulhiriya. • National Impact Emphasis on adopting new technology and transparent procurement processes. Critical focus on energy management across all scales, from large-scale industries (like apparel & textiles) to SMEs, to stabilize the economy and mitigate global warming. _Data based on official statements from the Sri Lanka National Energy Efficiency Awards._

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Digibrush & Emerald Triumph at Effie Awards 2025 📈

Sri Lanka’s digital marketing landscape saw a historic milestone as Digibrush led its client, Emerald, to win the "Most Effective Brand of the Year" at the SLIM Effie Awards 2025. • Key Achievements Digibrush secured 19 wins in total, including 2 out of only 5 Golds (40% of all Gold awards) presented during the night. Other accolades included 3 Silvers, 4 Bronzes, and 10 Finalist spots across sectors like FMCG, retail, and financial services. • The #DoublePocket Campaign Recognized as arguably the most awarded single campaign in Sri Lanka, it previously won the Grand Prix at SLIM Digis 2.5. Leveraging a cultural moment involving President Anura Kumara Dissanayake, the campaign went live within 24 hours. Impact: Emerald saw a 747% surge in double-pocket shirt orders and a 147.7X Return on Ad Spend (ROAS). • Market Significance The win underscores the growing dominance of ICT/BPM and digital agencies over traditional multinational networks in the apparel & textiles marketing space. Digibrush remains the only agency in Sri Lanka to claim four Grand Prix wins at SLIM Digis, reinforcing its position as a leader in performance marketing.

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📈 Jasmin Media Achieves 2026 Google Premier Partner Status

Colombo-based digital agency Jasmin Media has been awarded the Google Premier Partner designation for 2026. This status places the firm within the top 3% of Google partner agencies globally, marking its second such recognition in four years (previously awarded in 2023). • Performance Standards: The status is granted based on sustained campaign performance, measurable client growth, and advanced certifications across Google’s advertising infrastructure. • Full-Spectrum Capability: The agency holds certifications in search, display, YouTube video advertising, e-commerce shopping campaigns, and mobile app promotion. • Sector Diversification: Jasmin Media serves key local industries including banking, education, healthcare, FMCG, hospitality, and retail. • Regional Impact: Beyond Sri Lanka, the agency manages performance-led growth for clients in the UK, Australia, and the MENA region, showcasing the global competitiveness of the local ICT/BPM and digital marketing sector. The achievement underscores the agency's ability to operate at international standards while building high-tier digital capability within the Sri Lankan economy.

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## British Council Launches Women in STEM Scholarships for Sri Lankans 🎓

The British Council has opened applications for its sixth consecutive Women in STEM scholarship cycle, aimed at strengthening female leadership in science and innovation. • Program Scope: Provides fully funded one-year master’s degrees at top UK universities. Globally, 90 scholarships are available across 30 countries, with 25 specifically allocated to the South Asian region, including Sri Lanka. • Financial Value: Each scholarship is worth a minimum of £40,000, covering full tuition fees, living stipends, travel, visa costs, and health insurance. • Economic Impact: By connecting local talent with global expertise in fields like biomedical sciences and innovation, the program aims to bolster Sri Lanka’s ICT/BPM and research sectors, essential for national development and a diverse workforce. • Historical Reach: To date, the initiative has engaged 43 UK universities and awarded approximately 500 scholarships worldwide. • Deadline: Applications are open until late April 2026 for the 2026–27 academic year.

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Phoenix Ogilvy Tops 2025 Creative Rankings in Sri Lanka 📈

• Overall Achievement: Phoenix Ogilvy has been named the _2025 Sri Lanka Agency of the Year_ by Campaign Brief Asia, marking the country’s return to the regional creative rankings after a one-year absence. • Performance Metrics: The agency secured the top national spot with 295 Creative Ranking points. These points were amassed through significant wins at six major international award shows, including LIA, One Asia, Clio, AdFest, Spikes Asia, and The Work. • Individual Talent: The agency dominated the national Individual Creative Rankings. The top three spots were swept by Phoenix Ogilvy talent: Nadeera Warawita (No. 1 - 250 points) Sakuna Ranasinghe (No. 2 - 220 points) Samitha Kaushalya (No. 3 - 150 points) • Economic & Sector Impact: As a major hub in the ICT/BPM and creative services sector, the agency employs 290 industry specialists. This performance underscores the strength of Sri Lanka's intellectual capital and its ability to export high-value creative services globally. • Strategic Context: Chairman Irvin Weerackody attributed the success to a blend of global rigour and deep local intelligence, reinforcing the agency's 50-year standing as a pillar of the local marketing landscape. _Source: Campaign Brief Asia / Ogilvy Group Sri Lanka (Provisional Data)_ ---

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Industry & Sector News

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Sri Lanka’s Strategic Pivot as a Global Aviation Resilience Hub 📈

Geopolitical tensions in the Middle East are exposing vulnerabilities in the "super-connector" model, creating a strategic opening for Sri Lanka to position itself as a critical secondary node in the Indian Ocean. • Strategic Opportunity Disruptions in Iranian and Levantine airspace force global carriers into longer, costlier southern routes. Sri Lanka can capture value by offering redundancy and resilience to international airlines facing rising fuel costs and insurance risks. • Dual-Airport Strategy Bandaranaike International Airport (BIA): To be developed as the primary operational gateway for passenger/cargo transshipment and rapid long-haul turnarounds. Mattala Rajapaksa International Airport (MRIA): Repositioned as a strategic support base for technical stops, aircraft maintenance (MRO), and long-term parking to utilize currently underperforming capacity. • Economic Impact & Privatization Transforming these assets into a regional aviation network increases the valuation of the national carrier and airports. This framework is vital for attracting foreign investors for the planned privatization and restructuring of SriLankan Airlines. • Regional Connectivity The island’s proximity to high-growth markets like India, Bangladesh, and the Maldives positions it as a neutral, stable logistics platform for the broader South Asian ICT/BPM and trade corridors. • Key Roles Identified • Technical refueling and crew rotation hub. • Emergency diversion point during airspace closures. • Regional cargo and logistics feeder.

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Colombo Port: Strategic Gains Amidst Middle East Volatility 📈

The ongoing Middle East crisis presents a dual-edged scenario for Sri Lanka, threatening key sectors while positioning the logistics and maritime industry for a significant surge. • Economic Impact: While the external sector faces pressure—specifically tea exports, tourism, and remittances—the Colombo Port is set to benefit as international carriers divert vessels from high-risk Gulf routes. • Port Performance: Colombo handled 8.29 million TEUs last year, with transhipments comprising 81% of total volume. January 2026 data shows a 14.7% YoY increase in total container volume (754,730 TEUs). Transhipment volumes grew by 14.9% to 604,173 TEUs during the same period. • Capacity Enhancements: Unlike the congestion faced during the 2023 Red Sea crisis, the port is now better equipped: Colombo West International Terminal (CWIT): Operational since April 2025; a fully automated terminal with a 20m depth. Colombo East Container Terminal (ECT): Partially operational; expected to be fully functional by late 2026. • Strategic Outlook: With enhanced capacity through the Adani-JKH-SLPA consortium and state terminals, Sri Lanka is positioned as a critical hub for cargo consolidation and feeder connectivity for the Indian subcontinent. Policymakers are urged to pursue reforms to solidify the island's status as South Asia's leading logistics hub.

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### 🥛 Ambewela Farms Hits Record 23.5M Litre Milk Production Milestone 📈

Agriculture Minister K.D. Lalkantha reviewed the "unprecedented growth" at Ambewela Farms, highlighting its role in national food security and import substitution. • Production Benchmarks: Ambewela achieved an annual production of 23.5 Million litres in 2025. Daily milk output currently stands at 65,000 litres. High-yielding cows at the facility average 38 litres per day. • Sector Support & Modernization: Donated 10 heifer cows (valued at Rs. 15 Million) to local farmers to improve genetic stock. Full automation of livestock management and advanced breeding technologies have driven recent efficiency gains. The farm has transitioned into a regional hub for dairy technology and experiential learning for university students. • Economic Impact: The Minister emphasized the shift toward being "self-sufficient" to reduce dependency on imported milk powder. The facility also contributes to the tourism sector, recording peaks of up to 10,000 visitors per day. _Note: Figures based on 2025/2026 provisional performance data shared during the ministerial visit._

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Global Fuel Surge Triggers Airfare Hikes Amid Middle East Conflict 📈

The aviation industry is responding to a sharp spike in jet fuel prices, which surged from approximately US$ 90 to between US$ 150 - US$ 200 per barrel due to the ongoing conflict. While oil prices have recently stabilized around US$ 90, airlines are moving to pass increased operating costs to passengers. • Fare Adjustments: Air New Zealand has implemented broad hikes, including an NZ$ 90 increase on long-haul flights. Southeast Asian carriers like Vietnam Airlines report operating costs have risen by 60% to 70%. • Market Impact: Regional airline shares showed signs of recovery after an initial selloff, with Korean Air Lines up 8% and Cathay Pacific up over 4%. • Tourism Risks: Thailand’s Ministry of Tourism warns of a potential loss of 595,974 tourists and 40.9 billion baht in revenue if the conflict persists beyond eight weeks. • Operational Strains: Major transit hubs are affected as carriers like Emirates and Qatar Airways—which handle roughly one-third of Europe-Asia traffic—navigate airspace closures and rerouting. Aviation and Tourism sectors remain under pressure as fuel typically accounts for 20% to 25% of airline operating expenses. Further pricing actions are expected if fuel costs remain elevated, potentially impacting global travel demand.

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SMEs Face National Economic Risk Over Digital Divide 📈

The SME sector, a vital pillar for capital circulation and employment, faces significant socioeconomic risks due to technological stagnation and reliance on antiquated business practices. • Current Landscape SMEs range from retail and manufacturing to service providers. While large corporations scale via AI, automation, and digital payments, many SMEs remain tethered to manual recording and word-of-mouth marketing. • Key Economic Risks Operational Lag: Higher costs, slower service delivery, and limited customer reach compared to tech-enabled competitors. Macroeconomic Impact: A decline in SME adaptation threatens the national labor force and per capita income, leading to reduced aggregate demand and overall household expenditure. Market Distortion: Failure to modernize risks forcing long-standing local enterprises out of operation, potentially leading to monopolies or oligopolies dominated by international brands. • Strategic Interventions To preserve economic vitality and traditional craftsmanship, collaborative efforts between the government and financial institutions are essential. Focus areas include: Expanding internet connectivity and upgrading tech infrastructure. Developing specialized training programs for business owners. Integrating AI for simplified day-to-day management for those with low technical literacy. _Summary based on current SME digital divide analysis (2026)._

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Infrastructure Gaps Stifle Business Innovation and Commercial Success 📈

A report highlighting the critical link between infrastructure and entrepreneurship warns that inadequate systems are stalling the commercialization of new business ideas in Sri Lanka. While innovation drives development, a lack of supporting facilities prevents high-potential products from reaching the market. Key Infrastructure Bottlenecks • Telecommunications: 5G-enabled devices and services launched prematurely faced limited coverage, with towers restricted to major cities and incomplete fiber-optic networks in rural areas. • Transportation & Energy: The automotive industry struggles with electric vehicle (EV) adoption due to a lack of basic charging stations, despite the availability of affordable models. • Digital Platforms: Early FinTech innovations in digital payments and cashless systems faced similar hurdles due to insufficient digital frameworks. Economic Impacts • Resource Constraints: Inadequate public systems force startups and SMEs to invest in private logistics or power solutions, depleting limited capital. • Investment Deterrence: A lack of basic infrastructure discourages foreign direct investment (FDI) and essential technology transfers to the region. • Market Barriers: Businesses are frequently forced to postpone launches, limit target regions, or abandon innovative projects entirely. Strategic Outlook To foster a sustainable ICT/BPM and entrepreneurial ecosystem, the report urges policymakers to synchronize infrastructure investment with innovation. Strengthening these "fundamental systems"—including regulatory frameworks—is essential for businesses to achieve commercial viability and contribute to national growth.

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SL Tourism Hits 600,000 Milestone Amidst March Slowdown 📈

Sri Lanka’s tourism sector surpassed 600,000 arrivals for 2024 YTD, maintaining a 9% YoY growth despite recent geopolitical headwinds. However, the first eight days of March saw a 30.5% decline in arrivals compared to 2023, primarily due to Middle East conflict-related aviation disruptions. • Overall Figures & Impact • Total YTD Arrivals: 600,000+ • March (1-8) Arrivals: 47,646 (Daily avg: 5,956 vs 7,773 last year) • Revenue Risk: Estimated loss of US$ 10-15 Mn if airspace closures persist for one week. • Airfare Surge: Long-haul Asia-Pacific routes expected to rise by 8-15%. • Top Source Markets (YTD) • India: 111,085 visitors (Remains the dominant market) • UK: 64,464 visitors • Russia: 54,621 visitors • Sector Insights & Connectivity • Aviation: 34% of tourists transit through the Middle East; closures are forcing longer, costlier flight paths. • Strategy: Sri Lanka aims to reposition as a safe alternative to Mideast destinations, supported by a Rs. 2 Bn global PR campaign launching in April. • High-End Tourism: Focus shifting toward room rates in the US$ 300-500 range to boost yield. _Note: Data based on provisional March arrival figures._

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🚢 Cruise Ship Viking Sky Arrives in Colombo with 700+ Tourists

• Tourism Inflow: The Viking Sky cruise ship docked at the Colombo Port, bringing over 700 international guests to Sri Lanka during its voyage from Thailand to the Maldives. • Service Facilitation: Aitken Spence Travels managed the shore excursions, providing curated cultural and scenic tours across the city and surrounding attractions. • Economic Impact: This arrival highlights the ongoing recovery of the travel & leisure sector, specifically in the niche cruise tourism segment, which contributes to local employment and foreign exchange through brief, high-intensity visitor spending. • Current Status: Based on provisional reports; guests engaged in sightseeing within the Fort area and key vibrant city highlights before the vessel's departure.

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📈 Sri Lanka Banking Sector Profits Surge 19.3% in 2025

The Central Bank of Sri Lanka (CBSL) reports a robust performance for the banking industry, with Profit After Tax reaching Rs. 369 Bn for the year ending December 2025. • Financial Performance: • Profit After Tax: Rs. 369 Bn (↑ 19.3% YoY) • Net Interest Income: Rs. 1.02 Tn (↑ 11.7% YoY) • Non-Interest Income: Rs. 275 Bn (↑ 49.8% YoY) • Operating Expenses: Rs. 493.4 Bn (↑ 10.3% YoY) • Balance Sheet & Lending: • Total Assets: Rs. 24.9 Tn (↑ 12.4% YoY) • Net Loans & Receivables: Rs. 12.9 Tn (↑ 23% YoY) • Total Deposits: Rs. 20 Tn (↑ 11% YoY) • Key Stability Indicators: • Return on Equity (ROE): 16.7% (vs 16.6% in 2024) • Credit-to-Deposit Ratio: 69.9% (indicating a conservative lending stance) • Impairment for Loans: Significantly declined to Rs. 59.4 Bn. The data reflects a liquid and cautious banking sector, maintaining comfortable buffers while gradually expanding private sector credit. Despite the profit growth, banks retain a high share of funds in liquid investments rather than full loan deployment. (Based on provisional CBSL data).

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### 📈 Rubber Industry at a Crossroads Amid Structural Stress

Sri Lanka’s rubber sector faces a critical period as escalating costs, policy shifts, and biological threats challenge its long-term viability. Based on 2026 data, the industry risks structural decline without immediate intervention. • Overall Export Performance Total export earnings fell to ~US$ 945 Mn in 2025, a 6% contraction from US$ 1.01 Bn in 2024. Tyre and value-added segments were hit by US tariffs, affecting a market that yields one-third of total revenue. • Domestic Policy & Market Shocks The removal of the Simplified VAT (SVAT) system caused a liquidity crisis; buyers now face 18% upfront VAT. Auction prices for top-grade crepe rubber plummeted to Rs. 800/kg, down from over Rs. 1,300/kg previously. Labor costs rose further in 2026 following a 15% wage hike, squeezing margins for plantations. • Production & Biological Constraints Pestalotiopsis leaf disease has persisted for 8 years, slashing yields by up to 40% in affected areas. Acute shortage of skilled tappers and an aging workforce are driving a decline in latex output. Smallholders are increasingly abandoning rubber for faster-return crops like tea, cinnamon, and pepper. • Regulatory Outlook EU Deforestation Regulation (EUDR) compliance is now postponed to late 2026. While RPCs are well-prepared with GIS mapping, the sector requires state support for digital traceability and replanting subsidies to remain competitive against low-cost producers like Vietnam and Thailand. _Note: Figures based on provisional 2025/2026 industry data._

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## 📈 Empowering Women Farmers: Sri Lanka’s 2026 Rural Agenda

The UN has declared 2026 as the International Year of the Woman Farmer, highlighting a critical shift from simple representation to active decision-making power for women in Sri Lanka’s agriculture and plantation sectors. • Current Landscape Women perform the bulk of planting, harvesting, and processing but remain underrepresented in leadership and underpaid. The sector faces "access gaps" in land tenure, formal finance, and technical extension services tailored to women's schedules. • Proven Impact of Modernization Data from FAO-supported initiatives (funded by Australia, Canada, EU, and UK) demonstrate high returns on targeted investment: Seed Paddy & Onion Production: Technical rain shelters and GAP training helped farmers like Malani Senehelatha and Priyanthi Kumari Ekanayake boost profitability and secure supermarket linkages. Yield Optimization: Modern equipment and training transformed quarter-acre plots into the equivalent yield of full acres. Climate Resilience: Adoption of climate-smart practices has proved vital for household food security during economic shocks. • Strategic Priorities for 2026 Accessible Training: Rescheduling extension services to respect care responsibilities and increasing the use of women trainers. Financial Inclusion: Implementing group-based financing and targeted guarantees to bypass traditional collateral barriers. Market Power: Moving women into higher-value segments of the value chain with better control over pricing and contracts. Data Accountability: Using gender-disaggregated data to track who actually receives credit, training, and services. • Economic Context National food security and rural resilience depend on transitioning women from "symbolic seats" in farmer organizations to roles with genuine agenda-setting authority.

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### Middle East Conflict Hits SL Shipping Routes 🚢

The Sri Lanka Shippers’ Council (SLSC) has warned of significant disruptions to global trade as escalating geopolitical tensions between the US, Israel, and Iran impact maritime corridors. • Operational Impacts: Shipping lines have begun adjusting schedules, suspending specific routes, and rerouting cargo to unintended ports. This has created a "severe burden" for exporters and importers due to rising storage and re-shipping costs. • Cost Escalation: Carriers are already imposing risk-related surcharges. Prolonged instability is expected to drive up freight costs and cause significant transit delays for the island nation. • Sector Concerns: As a maritime-dependent economy, Sri Lanka’s logistics and trade sectors are highly sensitive to these shifts. The SLSC emphasized that safe and open international shipping routes are critical for national commerce. • Strategic Response: Chairman Trisherman Frink called for urgent cooperation between the government, port authorities, and the private sector to mitigate supply chain risks and ensure the continued flow of trade. The council remains in close contact with international industry bodies to monitor the evolving situation and support the local trade community. 📈

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Sustainability, ESG & Corporate Responsibility

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### Commercial Bank Reinforces Ethics and Inclusion Framework 📈

Commercial Bank of Ceylon (ComBank) has detailed its latest strategic focus on governance, human capital, and diversity to drive long-term performance. Key highlights from the 2024-2026 reporting period include: • Ethical Compliance & Training Over 96% of employees completed formal training on ethical behavior and compliance in 2024. Implementation of a strict Conduct Risk Management framework and an Anti-Bribery policy aligned with the UN Global Compact’s 10th Principle. Conducted 19 specialized sessions on anti-corruption with 75% staff participation. • Gender Diversity & Inclusion Women now constitute over 30% of the total workforce. High retention achieved with a 100% return-to-work rate for female employees following maternity leave. Internal progression noted with 14 female employees promoted to senior management and 21 completing exclusive leadership development courses. • Governance & Accountability Strengthening of the Whistleblower Charter, providing anonymous channels (hotlines/direct email to Chief Internal Auditor) to report misconduct without retaliation. Expansion of recruitment drives into underserved rural regions to enhance cultural and ethnic representation within the banking sector. Integration of automated monitoring and periodic audits to mitigate risks related to insider trading and conflicts of interest. _Note: Statistics and outcomes based on bank performance and reported data for the 2024-2026 period._

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Thema Collection’s Amba Yaalu Kandalama Wins Global Gender Equality Award at ITB Berlin 📈

Thema Collection’s Amba Yaalu Kandalama has been recognized as the "Gender Equality Champion of the Year 2026 – Accommodation" at the ITB Berlin international travel trade show, marking a significant milestone for Sri Lanka’s hospitality sector. • Core Achievement: The award recognizes the property’s commitment to female leadership and workforce participation in a sector where women remain underrepresented despite making up over 50% of the national population. • Operational Model: • Established as a fully women-led hotel, demonstrating female-driven operational feasibility across managerial, technical, and service functions. • Currently employs nearly 100 women, supported by structured mentorship and career progression pathways. • Integrates rural women entrepreneurs into the supply chain, boosting local economic participation. • Sector Context: The initiative by Thema Collection (which operates 16 properties) aims to move beyond symbolic representation toward a commercially sustainable, inclusive business model within the tourism industry. • Sustainability & ESG: • The property utilizes renewable energy (rooftop solar), responsible water management, and low-impact architectural design. • Focuses on social inclusion and cultural preservation as part of its broader environmental and social governance framework. This international recognition underscores the viability of gender-responsive strategies in strengthening Sri Lanka's tourism & leisure value chain.

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### World Bank to Finance $50 Mn Sri Lanka Digital Transformation 📈

The World Bank and GovTech Sri Lanka have launched a $50 million initiative to overhaul the national digital landscape. While aimed at efficiency, the project faces scrutiny regarding human rights and inclusivity. • Overall Figures & Targets Total Funding: US$ 50 Mn. User Goal: Target of 4 million users for digital government services by 2029. Infrastructure: Implementation of a National Data Exchange, 'Super App', and biometric Digital ID system. • Key Components & ICT Development Digital ID: Proposed biometric registration starting at birth/school entry to enable "paperless and cashless" transactions. Connectivity: Integrating banks and telecommunications via Digital ID APIs. Digital Literacy: Sub-components focused on local language content and digital adoption. • Critical Challenges & Context Digital Divide: 39% of households remain offline; only 51% of individuals actively use the internet (based on provisional data). Risk Rating: Classified as "low" risk by the World Bank, though critics cite concerns over state surveillance and a lack of trilingual documentation. Exclusion Risks: Significant gaps persist, including a 34% gender gap in internet use and limited access (7%) for persons with disabilities. • Sector Impact The project aims to modernize public administration and the startup ecosystem, though experts warn that without rights-based guardrails, it may deepen marginalization for the 49% currently outside the digital system. _Note: Summary based on executive briefing and World Bank Project Information Documents._

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Darley Butler Launches "We Must Change" Sustainability Campaign 🌍

Darley Butler, the FMCG arm of E B Creasy & Co. PLC, has introduced an island-wide refill pouch initiative to significantly reduce plastic waste in the household and homecare sector. • Key Initiative: Launch of the "We Must Change" campaign on March 6, 2026, introducing refill pouches across four major brands: Teepol, Bio Clean, Softny, and Bubble All Out. • Environmental Impact: The transition from rigid plastic bottles to refill pouches is estimated to reduce plastic usage by up to 70% per product unit. • Market Reach: Refill options are now available across both modern trade (supermarkets) and general trade outlets island-wide to ensure accessibility for the mass market. • Strategic Goal: To shift consumer behavior toward a "refill instead of replace" model, embedding sustainability into everyday cleaning, laundry, and homecare routines rather than niche segments. • Economic Context: By leveraging some of Sri Lanka’s most trusted household brands, the company aims to scale plastic reduction quickly by maintaining affordability and convenience for local consumers. Based on corporate announcement data.

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NCCSL & Pan Asia Bank to Celebrate International Women’s Day 2026 📈

The National Chamber of Commerce of Sri Lanka (NCCSL), in partnership with Pan Asia Bank, will host a high-level forum tomorrow, March 10, focused on women’s leadership and economic participation. • Event Theme: "She Leads the Future: Sustainable Growth with Purpose," aligning with the UN global mandate for rights and justice for all women. • Core Focus: Advancing economic empowerment, financial independence, and sustainable leadership within the Sri Lankan business landscape. • Key Sessions: - Financial Planning: Specialized segments on wealth management for women. - Leadership & Education: Strategies to bridge the gender gap in executive roles. - Wellness & Inclusivity: Sessions hosted by Mega Life Sciences and the UNFPA on gender inclusivity and health. • Strategic Importance: The event serves as a critical platform for entrepreneurs and policymakers to foster community-building and professional advancement for women, directly impacting employment and sustainable growth. • Partnerships: Supported by a broad coalition of private sector entities, including Wijaya Products, Eswaran Brothers, and Nawaloka Hospitals, reflecting a multi-sectoral commitment to gender-equitable economic development. _Status: Event scheduled for 9.00 a.m. at the National Chamber Auditorium, Colombo._

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UN Secretary-General Outlines 8 Actions for Global Gender Equality 📈

The UN Secretary-General, marking International Women's Day 2026, identified gender inequality as the premier human rights challenge, noting that closing gender gaps can boost national income by as much as 20%. • Economic & Investment Impact Education: Every US$ 1 invested in girls' education yields nearly triple the gains. Health: Maternal health and family planning investments generate an 8x return. Growth: Policies for childcare and elder care are cited as fundamental for unlocking national economic growth. • Legal & Institutional Gaps Legal Rights: Globally, women hold only 64% of the legal rights enjoyed by men. Representation: Women comprise only 25% of the tech workforce, leading to "hardwired" bias in digital systems. Leadership: Parity in senior leadership and boardrooms is highlighted as a driver for more inclusive decision-making and stronger institutional results. • Sectoral & Social Priorities Peace & Security: Inclusion of women in negotiations (e.g., Gaza, Ukraine, Sudan) is categorized as a "shortcut" to stability. Climate Change: Advocates for gender-responsive climate policies, emphasizing that women face higher risks during food crises and displacement. Safety: Calls for "zero tolerance" for gender-based violence and the removal of barriers for girls in science and technology.

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City of Dreams Sri Lanka: Empowering Women in South Asia’s First Integrated Resort 📈

City of Dreams Sri Lanka marks International Women’s Day by highlighting the critical role of female leadership and technical expertise within the nation’s first fully integrated resort. • Strategic Inclusion: Beyond traditional hospitality roles, women are integrated into high-responsibility sectors including surveillance, gaming operations, information security, and security management. • Economic Impact: The resort model fosters broader career pathways in the tourism & entertainment sectors, providing local talent with exposure to international best practices and global standards. • Operational Excellence: The organization emphasizes a performance-driven culture, moving beyond traditional stereotypes to focus on capability, analytical thinking, and regulatory compliance. • Support Frameworks: Key initiatives include equal opportunity hiring, structured mentorship, leadership training, and robust maternity support policies to ensure sustainable career growth. • National Context: As Sri Lanka positions itself as a competitive global destination, the resort's focus on a diverse, high-performance workforce is cited as essential for long-term growth in sustainable tourism.

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### CSE and Global Partners Ring Opening Bell for Gender Equality 📈

The Colombo Stock Exchange (CSE), in partnership with the IFC, UN Women, and the UN Global Compact, held a ceremonial bell-ringing to advocate for women’s economic empowerment and leadership within the Sri Lankan corporate sector. • Current Representation: Women’s representation on CSE-listed boards reached 13.7% in 2026, reflecting a modest YoY increase from 13.4% in 2025. • Economic Impact: Leaders emphasized that unlocking women’s potential is critical for inclusive growth, poverty reduction, and job creation. Balanced leadership is linked to improved risk management and sustainable value in the private sector. • Key Sectors & Leadership: High-profile representation included leadership from Hayleys Agriculture, Aitken Spence, and the Securities & Exchange Commission. • Global Alignment: The event is part of a global initiative involving 114 exchanges aimed at dismantling barriers to women’s career growth and fostering inclusive financial markets.

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Youth-Led Circular Economy Forum Debuts in Jaffna 📈

A pioneering Circular Economy Forum is being held today (March 7) at the Arc Building in Jaffna, signaling a shift toward sustainable resource management and green technology in the Northern Province. • Event Objectives The forum aims to replace the traditional "Take-Make-Waste" linear model with a circular system where waste is repurposed as a resource. It serves as a platform to align environmental protection with economic prosperity for young entrepreneurs and undergraduates. • Key Highlights & Initiatives Organization: Spearheaded by Terra Force, a civilian movement founded in July 2025 to foster ecological balance. Sector Focus: Key themes include the sharing economy, biological regeneration, and sustainable production/services. Mentorship: Speakers from initiatives like Saho Creations, Dream Garden, and Save a Life will serve as "Founding Mentors" to help students transition "circular" ideas into viable businesses. • Economic Impact The initiative focuses on redesigning financial and resource flows to ensure long-term regional prosperity. By treating sustainability as a profitable business strategy, the forum seeks to build a registry of youth-led startups and eco-initiatives to modernize the Northern Province's industrial outlook. • Future Outlook Organizers intend to present innovative, youth-proven solutions to the Jaffna Municipal Council to support local governance through scientific environmental solutions. _Note: Information based on event launch data._

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📈 Spa Ceylon Launches ‘Her Business Matters’ to Boost Women-Led SMEs

Spa Ceylon has unveiled ‘Her Business Matters,’ a nationwide initiative timed for International Women’s Day 2026 to provide growth support and brand amplification for local female entrepreneurs. • Overall Objective: The program transitions from symbolic celebration to practical economic empowerment, targeting female founders who manufacture or produce locally in Sri Lanka to drive SME growth and employment. • Support Framework: • Brand Amplification: Five selected businesses per week will receive exposure via Spa Ceylon’s marketing channels and influencer networks throughout March 2026. • Capacity Building: Participants will attend workshops in Colombo covering social media, compliance, brand positioning, and scaling. • Strategic Partnerships: Collaboration with Simple Books (Finance/Compliance) and RoarAdX (Digital Growth) to provide technical expertise. • Selection Criteria: Applications are open through March via social media. Screening focuses on scalability, product quality, and long-term growth potential. • Economic Context: The initiative builds on the 2025 ‘Act For WIN’ campaign, leveraging Spa Ceylon’s position as a global brand (140+ locations in 30+ countries) to integrate local women-led businesses into the broader retail and wellness ecosystem.

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SLASSCOM Women in Tech 2026: Driving Diversity in the Digital Economy 📈

The ICT/BPM sector gears up for the fourth edition of the Women in Tech Conference, scheduled for March 26, 2026, at Shangri-La Colombo. Organized by the SLASSCOM Women Technopreneurs Forum, the event aligns with International Women’s Day to promote inclusive leadership. • Conference Overview: Transitioning into a full-day experience, the event builds on a consistent track record of over 300 participants per edition. • Core Focus: The 2026 theme centers on "future-ready leadership," leveraging AI and emerging technologies as catalysts for inclusion and workplace transformation. • Key Speakers: Featured keynote by Sindhu Gangadharan (MD of SAP Labs India & Nasscom Chairperson), alongside influential local policymakers and technopreneurs. • Economic Context: The initiative aims to strengthen Sri Lanka’s digital economy by enhancing Diversity, Equity, and Inclusion (DEI) commitments, which are vital for talent retention and global employer branding. • Strategic Goals: Unlocking innovation through diversity and equipping the workforce with insights into AI-driven transformation and progressive leadership. _Note: Based on official event announcement for March 2026._

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Greenpeace Calls for ‘Polluter Pays’ Action Following Cyclone Ditwah 📈

A new report by Greenpeace South Asia highlights the staggering economic and human toll of Cyclone Ditwah, urging for global climate accountability and a national loss and damage framework. • Economic Impact & Damage The World Bank estimates total economic damage at approximately US$ 4.1 Bn. Over 114,000 homes were partially or destroyed; critical infrastructure including roads, railways, and utilities faced extensive disruption. Human cost: More than 600 deaths and 2.3 million people affected by flooding and landslides. • Sectoral Disruptions Agriculture & Fisheries: Rural livelihoods and food security are severely threatened as these key sectors face long-term recovery challenges. Agrarian Debt: Experts warn that disasters exacerbate existing debt burdens for rural communities, calling for grant-based climate financing. • Climate Science & Advocacy Human-driven climate change made Ditwah’s rainfall 28% to 160% more intense. Sri Lanka contributes less than 0.1% of global emissions but bears disproportionate costs, fueling calls for the "Polluter Pays" principle against major carbon emitters. • Policy Recommendations Establishment of an independent Loss and Damage Committee to address both economic and non-economic losses (e.g., cultural and psychological). Advocacy for climate-related debt relief and restructuring to prevent further national financial vulnerability.

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Regulatory & Policy News

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Drug Trafficking Named Top Money Laundering Threat in Sri Lanka 📈

The Financial Intelligence Unit (FIU) has released the National Risk Assessment (NRA) 2024/25, identifying evolving challenges to the country's financial integrity. • Overall Risk Ratings: The national Money Laundering (ML) risk remains Medium, while the Terrorist Financing (TF) risk has increased to Medium-High. The Proliferation Financing (PF) risk was assessed for the first time at a Medium level. • Primary Threats: Drug Trafficking: Now the most serious threat, upgraded to High risk. Fraud & Customs Offences: Rated Medium-High, with concerns over Trade-Based Money Laundering (TBML). Bribery & Corruption: Decreased to Medium, supported by an improved Corruption Perception Index (CPI) score of 35 in 2025. • Sector Vulnerabilities: Banking: Maintains a Medium-High ML risk due to its scale in the economy. Real Estate & Casinos: Rated High and Medium-High respectively within the DNFBPs (Non-Finance Businesses) sector. Virtual Assets: Rated Low to Medium, reflecting emerging but monitored risks. • National Context: The assessment involved 86 organizations to strengthen the financial services framework. Findings will form the basis for the National Policy on AML/CFT for 2026–2030 to safeguard the ICT/BPM and broader investment climate.

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### 📉 Tax Justice Alert: New Bill Proposes "Evidentiary Lock-out"

A critical analysis of the proposed Inland Revenue (Amendment) Bill of 2026 reveals a shift from discretionary document oversight to a hard statutory bar, potentially impacting the ICT/BPM and broader corporate sectors. • Core Legislative Change Section 122(8A) introduces a "permanent evidentiary lock-out." For info requested after April 1, 2026, failure to submit documents within fixed windows—6 months (local) and 9 months (foreign)—renders evidence legally inadmissible in future judicial or Tax Appeals Commission (TAC) hearings. • The "14-Day" Compliance Risk While 6/9-month windows exist, they do not extend original deadlines. If an officer sets a 14-day limit for complex reconciliations and the taxpayer misses it, they face a "statutory guillotine," even if they hold proof that an assessment is erroneous. • Global Comparison & Outlier Status Unlike Sri Lanka’s proposed "hard bar," global peers use "Safety Valve" models: India: Allows evidence if "sufficient cause" for delay is shown. UK: Prioritizes "fairness and justice" over procedural rigidity. Australia: Focuses on whether late evidence causes "undue prejudice." • Key Concerns for Businesses Administrative Convenience vs. Natural Justice: Critics argue the bill punishes all taxpayers for the delays of a few. Third-party Delays: Obtaining foreign certificates or historical data often exceeds the proposed windows. Constitutional Risk: The bill may face Supreme Court challenges for violating Article 12(1) (equal protection).

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TISL Probes Coal Procurement Irregularities via RTI 📈

Transparency International Sri Lanka (TISL) has filed Right to Information (RTI) requests targeting the Lanka Coal Company (LCC) and the Energy Ministry following allegations of corruption in coal supplies for the Norochcholai Lakvijaya Coal Power Plant. • Core Allegations: Concerns involve a major tender finalized in September 2025. Key issues include a shortened bidding period, amended eligibility criteria allegedly favoring specific suppliers, and the delivery of inferior quality coal shipments reported in January 2026. • Institutional Involvement: Requests were sent to the National Procurement Commission and the Ministry of Ports, Shipping and Aviation to verify financial transactions, quality certifications, and oversight mechanisms. • Economic Impact: The probe seeks to determine if procurement lapses caused financial losses or risks to electricity generation, which is vital for national grid stability and the manufacturing sector. • Current Status: While the Ceylon Electricity Board (CEB) initiated an internal audit, it reportedly focused on "document disclosures" rather than the procurement process itself. Parliamentary bodies, including COPE, have now launched comprehensive investigations. • Objective: TISL aims to ensure accountability in the use of public funds and to safeguard the energy sector from governance weaknesses that undermine public trust.

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### SEC Launches Storybook to Boost Financial Literacy 📚

The Securities and Exchange Commission of Sri Lanka (SEC) has introduced a children’s storybook titled "Madura’s Bamboo Flute Dream" to promote financial education among secondary school students. • Core Objective: The initiative aims to foster an entrepreneurial mindset and financial awareness, focusing on habits like earning, saving, and investing responsibly. • Strategic Alignment: The book supports the proposed introduction of Financial Literacy and Entrepreneurship as a subject under upcoming national education reforms. • Target Audience: Primarily designed for students in Grades 6 to 9, the resource will be distributed free of charge to schools nationwide in all three languages. • Key Stakeholders: SEC Chairman Prof. D.B.P.H. Dissabandara presented the book to Prime Minister Dr. Harini Amarasuriya, highlighting its role in building a future-ready, self-reliant workforce. • Content Focus: The narrative guides young learners on managing resources wisely and pursuing aspirations, contributing to long-term economic diversification and human capital development. 📈

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### 📈 IRCSL Unveils Roadmap to Triple Insurance Penetration by 2035

The Insurance Regulatory Commission of Sri Lanka (IRCSL) marked its 25th anniversary by announcing a strategic growth plan to double insurance penetration by 2030 and triple it by 2035. The sector is positioned as a critical pillar for national financial stability and risk protection. • Current Market Standing (as of Q3 2025): Gross Written Premium (GWP): Rs. 283.6 Bn (+19.48% YoY). Total Sector Assets: Rs. 1.35 Trillion. Current Penetration: ~0.5% of GDP for general insurance and ~0.6% for life insurance. Industry Players: 29 insurers (15 life, 14 general) and 82 broking companies. • Digital & Regulatory Transformation: Digital Motor Insurance Card: Launched in collaboration with the Public Security Ministry to automate verification. Centralised Data Repository: A new real-time system to enhance oversight and curb insurance fraud. Mortality Table: Introduction of a localized standard mortality table to refine life insurance pricing and risk management. • Structural Reforms & Literacy: Transitioned to a Risk-Based Capital (RBC) model to ensure long-term solvency. New specialized units established for Market Intermediary Licensing and Market Conduct. Focus on financial literacy through nationwide programs and the "InsureChamp 2025" initiative to bridge the protection gap. • Future Outlook: Sri Lanka will host the OECD/ADB Institute Roundtable in June 2026, focusing on retirement savings and natural hazard protection, addressing key demographic and climate risks.

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📈 SLTDA Facing Credibility Test Over Enforcement Delays

A delay in operationalizing a Special Enforcement Unit by the Sri Lanka Tourism Development Authority (SLTDA) is raising concerns over regulatory credibility and the protection of licensed stakeholders during the peak season. • Legal Commitments: Despite a July 2025 undertaking to the Supreme Court to establish an enforcement unit within three months, the unit remains non-functional. • Current Bottleneck: Implementation is reportedly deferred for at least another six months pending legal consultations on a proposed new Tourism Act, despite existing mandates under the Tourism Act No. 38 of 2005. • Sector Impact: Unregistered operators continue to function openly, placing licensed tour guides and compliant businesses at a significant disadvantage during high-traffic periods. • Economic Risks: Critics argue that failing to regulate risks lowering service standards and visitor safety, potentially damaging Sri Lanka's reputation and long-term foreign exchange revenue. • Key Stakeholders: The Sri Lanka Institute of National Tourist Guide Lecturers (SLINTGL) previously initiated legal action to compel enforcement against unlicensed entities. _Note: Summary based on published reports regarding regulatory delays as of March 2026._

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Legal Experts Challenge Demolition of Historic S. Thomas’ College Dining Hall 🏛️

• Legal Status: Experts, including public interest litigator Dr. Ravindranath Dabare, state the planned demolition or modification of the Dining Hall is "manifestly illegal" under the Antiquities Ordinance No. 9 of 1940. • Historical Significance: Constructed between 1918 and 1922, the building exceeds the 100-year threshold, legally classifying it as an "ancient monument." • Legal Protection: Under Section 16 of the Ordinance, status as an antiquity is granted by age alone and does not require formal gazetting. Unauthorized structural alteration is considered a non-bailable criminal offense. • Project Details: The proposed work is part of the "Phase IV Senior Quadrangle" development, funded by a Rs. 600 million donation from philanthropist Eng. Nahil Wijesuriya. • Conservation Concerns: Critics argue the project threatens the architectural legacy of Warden William Arthur Stone and violates the school’s role as a "trustee" of national heritage for future generations. • Context: The controversy coincides with the school’s 175th anniversary, highlighting the tension between modern infrastructure development and heritage preservation in Sri Lanka. ⚖️

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### TISL Warns of Loopholes in New Microfinance Law 📉

Transparency International Sri Lanka (TISL) has raised serious concerns over the recently passed Microfinance and Credit Regulatory Authority Bill, stating it fails to meet Supreme Court determinations and leaves vulnerable borrowers at risk. • Regulatory Gaps: The law defines "microfinance" only when the primary objective is "social empowerment." This allows large banks and leasing companies to offer identical small loans under a "commercial objective" to avoid the consumer-protection standards applicable to licensed microfinance institutions. • Lack of Borrower Protection: • No mandatory income verification or debt-to-income thresholds. • Absence of clear appeal mechanisms or guaranteed legal representation for borrowers. • Failure to recognize coercive recovery practices, including sexual bribery and corruption targeting women, as regulatory breaches. • Governance & Accountability: • No mandatory conflict-of-interest disclosures for the new Authority. • Inadequate transparency regarding funding sources and grants. • High concentration of discretionary power without sufficient oversight. • Economic Impact: The microfinance sector is a critical pillar for low-income households and women-led small businesses. TISL warns that "superficial amendments" risk leaving these communities exposed to predatory lending, hindering genuine financial inclusion and poverty Alleviation efforts.

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📈 Cabinet Tightens Maize Import Controls to Protect Local Farmers

The Cabinet of Ministers has introduced a structured regulatory framework for maize imports to address domestic supply shortfalls while safeguarding the local agriculture sector. • New Pricing & Import Framework: A committee led by the Agriculture Ministry Secretary will now determine maize prices. Imports will be strictly limited to filling the gap when local harvests are unavailable in the market. • Thriposha Production: Approval granted for Sri Lanka Thriposha Ltd. to import up to 15,000 tons of maize in phases during 2026. This ensures the uninterrupted production of the national nutritional supplement despite local quality and supply constraints. • Regulated Participants: Only registered animal feed manufacturers and importers under the Department of Animal Production and Health are permitted to import, subject to rigorous supervision to prevent market distortions. • Process Streamlining: A new stepwise procedure has been formulated by the Agriculture and Trade Ministries to bypass bureaucratic bottlenecks and ensure timely procurement of high-quality raw materials. The move aims to balance the needs of the poultry & livestock and food processing industries with the livelihoods of domestic maize growers.

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### Legal Win for Colombo Fort Land: Court Clarifies Tax Status ⚖️

The Court of Appeal has ruled in favor of Colombo Fort Land & Building PLC, establishing a significant precedent for the taxation of corporate structures in Sri Lanka. • The Ruling: The Court classified the entity as a Holding Company rather than an Investment Company, rejecting the Inland Revenue Department’s (IRD) attempt to tax dividends as trading profits. • Key Distinction: The judgment clarified that Holding Companies maintain long-term control over subsidiaries, whereas Investment Companies typically engage in frequent share trading for short-term gains. • Tax Impact: The IRD argued that because dividends exceeded 80% of revenue, they should be treated as business income. The Court rejected this, ruling that high income concentration does not automatically change legal classification. • Legislative Intent: The decision reinforces the Inland Revenue Act of 2006, ensuring dividends are classified as a separate income source to prevent double taxation within corporate groups. • Economic Significance: This ruling provides much-needed tax certainty for diversified Conglomerates and Holding Companies, protecting the financial flow between parent companies and their subsidiaries.

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### Tax Clarity and Enhanced Disclosure for Sri Lankan Unit Trusts 📈

The Unit Trust Association of Sri Lanka (UTASL) has highlighted key provisions in the proposed Bill to amend the Inland Revenue Act, focusing on transparency and investor tax obligations. • Pass-Through Status: Unit Trusts will continue to be treated as pass-through vehicles for income tax, where income is taxed at the unit holder level. However, to maintain this status, trusts must now issue detailed income certifications to investors within five months of the assessment year-end. • Penalty for Non-Compliance: If a Unit Trust fails to provide the required certification (detailing income, exemptions, and withholding taxes), it will be treated as a company for income tax purposes, potentially increasing the tax burden. • Capital Gains Tax (CGT): Quoted Equities: Investments in listed equities held by Unit Trusts remain exempt from CGT under the broader framework. Other Assets: The UTASL expects CGT treatment for other asset classes to remain unchanged, provided the pass-through status is maintained. • Implementation Timeline: These requirements are expected to take effect from 1 April 2025. • Economic Impact: By formalizing disclosure, the amendments aim to improve good governance within the financial services sector and the capital markets, ensuring Unit Trusts remain a viable vehicle for long-term national investment.

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Sri Lanka Entering Final Stage for PayPal Inward Remittances 📈

Sri Lanka is nearing the completion of a long-awaited initiative to enable inward remittances through PayPal, according to Digital Economy Ministry Secretary Waruna Sri Dhanapala. • Current Status: The project is in its concluding phase following successful collaboration between private banks, PayPal, and the Central Bank of Sri Lanka (CBSL). • Economic Impact: SMEs & Freelancers: The move specifically targets internet-based service providers and the ICT/BPM sector, allowing them to receive foreign income through a formal, regulated mechanism. Foreign Exchange: By providing a local address option, the framework aims to capture "lost" forex currently held in overseas or proxy accounts. Formalization: The government expects a shift from informal channels (like Undiyal) to official platforms, improving transparency and tax compliance. • Regulatory Oversight: All transactions will fall under CBSL supervision, ensuring a secure and transparent digital payment ecosystem to strengthen national foreign exchange inflows. _Source: Digital Economy Ministry (Provisional)_

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Global & International Business

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📈 EDB Announces Sri Lanka Expo 2026: Applications Open for Exporters

The Sri Lanka Export Development Board (EDB) has invited local businesses to participate in Sri Lanka Expo 2026, a premier international trade exhibition aimed at connecting domestic industries with over 1,500 global buyers and investors. • Event Details The exhibition is scheduled for 18th–21st June 2026 at the BMICH, Colombo. It features 650 dedicated booths for exporters and export-oriented firms to showcase diverse high-potential sectors. • Sector Highlights The event covers three primary economic pillars, supporting national goals of diversification and global integration: Industrial Products: Includes Apparel & Textiles, Rubber & Plastics, Gems & Jewelry, Engineering, and Electronics. Agro-Industrial: Features Tea, Spices, Coconut-based products, Seafood, and Processed Foods. Export Services: Focuses on ICT/BPM, Tourism, Logistics, and Renewable Energy. • Application & Selection Deadline: 31st March 2026. Process: Due to limited space, a screening process will select qualified exhibitors. Notifications will be sent in the first week of April 2026. Networking: Selected participants can arrange pre-scheduled B2B meetings with international delegates. • Contact Information Industrial: Indika Sugathadasa (0718246762) Agro-Industrial: Jayani Galagedara (0710391184) Services: Dishant Yapa (0772953717) General: expo@edb.gov.lk | 0772 255 647

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📈 Govt. & CEOs Align on New National Export Roadmap

The Government of Sri Lanka and private sector leaders have initiated a strategic collaboration to overhaul the country's export trajectory following the "National Export Roadmap: The CEO Forum" held at the EDB. • Strategic Direction: The forum established a unified framework between policymakers and corporate heads to review 2025 performance and set aggressive growth targets for 2026 and beyond. • State-Led Investment: The Ministry of Industries and Entrepreneurship Development committed to acting as the "main investor" in the industrial ecosystem. Key priorities include modernizing industrial zones, streamlining power supply, and expanding technical facilities to boost manufacturing competitiveness. • Public-Private Partnership: Officials emphasized that sustainable economic progress hinges on collective contribution, aiming to empower exporters and entrepreneurs to expand Sri Lanka’s global footprint. • Key Sectors: While specific revenue data remains provisional, discussions focused on accelerating growth in high-potential industries to boost national export earnings and strengthen Sri Lanka's position in global trade.

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### 📈 Sir Mark Tucker to Address SLID Forum on Sri Lanka’s Capital Strategy

Sir Mark Tucker, Chairman of AIA Group and former HSBC Holdings Group Chairman, will deliver a keynote address in Colombo titled “Reconnecting to Capital, and Repositioning Sri Lanka in a Fragmenting World.” • Event Details: Organized by the Sri Lanka Institute of Directors (SLID), the forum is scheduled for Tuesday, 10 March 2026, at the Port City Colombo Sales Gallery. • Economic Context: Focuses on financial markets, capital reintegration, and navigating global fragmentation—critical areas for the recovery of the banking & finance and insurance sectors. • High-Level Panel: Following the keynote, a discussion will feature former Central Bank Governor Indrajit Coomaraswamy, targeting insights into monetary policy and investment strategy. • Leadership Representation: The session will be moderated by CEOs from Commercial Bank and AIA Insurance Lanka, highlighting the engagement of top-tier ICT/BPM and corporate leadership in national economic repositioning.

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## 📈 Renewed India-SL Trade Pact to Drive Export Surge

A modern trade framework with India is essential to transition Sri Lanka from a 20th-century product mix to a strategic player in global supply chains. While India is the largest trading partner, a significant trade imbalance persists, necessitating a shift toward high-value industrial investments. • Key Trade Figures Over 60% of current exports to India utilize the India-Sri Lanka Free Trade Agreement (ISFTA). Despite this, a massive gap exists: Vietnam exports more to China in one week than Sri Lanka does to China in five years, highlighting the urgent need for supply chain integration. • Strategic Sector Opportunities Manufacturing & Electronics: Potential to move beyond assembly to supplying insulated wires, cables, and rubber components as intermediate goods for Indian industry. Spices & Agri-products: While traditional exports remain a staple, the focus must shift to non-traditional, higher-value manufactured goods. ICT/BPM & Services: A renewed Economic and Technology Cooperation Agreement (ETCA) aims to open doors for service-led growth and technology transfer. • Economic Impact & Barriers FDI Attraction: Preferential access to India’s 1.4 billion market makes Sri Lanka a competitive base for export-oriented foreign investment, boosting employment. Regulatory Hurdles: Current growth is limited by narrow product concessions, restrictive tariff quotas, and extensive negative lists. Value Addition: Existing rules require a minimum of 25% Domestic Value Addition (DVA) to qualify for preferential tariffs, providing a baseline for deeper industrial integration.

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## 📈 Sri Lanka Engages at Raisina Dialogue 2026 in New Delhi

Foreign Affairs Minister Vijitha Herath represented Sri Lanka at the 11th edition of the Raisina Dialogue on March 5, 2026, reinforcing bilateral ties with India. • Core Engagement: The visit emphasized the "longstanding relationship" between the two nations, focusing on diplomacy, trade, and strategic collaboration. • Global Context: The forum, themed "Saṁskāra – Assertion, Accommodation, Advancement," addressed the rising influence of the Global South in the future global order. • Key Highlights: • Inaugurated by Indian PM Narendra Modi with a keynote by Finnish President Dr. Alexander Stubb. • Discussions centered on regional stability and people-to-people connections. • Participation reflects Sri Lanka’s commitment to regional geopolitics and economic integration within South Asia.

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### 🇹🇭 Thailand Week 2026: Strengthening Sri Lanka-Thai Trade Ties

The sixth edition of ‘Thailand Week 2026’ officially opened at Havelock City Mall, Colombo, serving as a strategic platform to enhance bilateral economic relations and consumer access to premium Thai goods. • Event Overview The three-day trade and cultural fair (March 6–8) is organized by the Thai Trade Centre Chennai and the Royal Thai Embassy, in collaboration with Sri Lanka’s Ministry of Development Strategies and International Trade. • Key Business Participation 30 Thai companies are showcasing over 100 high-quality products directly to the Sri Lankan market. Featured sectors include Food & Beverage, Spa & Wellness, Cosmetics, and Household items. Specific focus on instant Thai seasonings, noodles, biscuits, and herbal massaging oils. • Economic Impact & Networking The event facilitates direct B2B networking, allowing Sri Lankan entrepreneurs to establish new dealerships and long-term trade partnerships. Emphasizes quality and sustainability in trade as a driver for market diversification. Siam House Restaurant received the ‘Thai SELECT’ logo, the first in Sri Lanka recognized for authentic culinary identity, highlighting the growing hospitality and services synergy. • Cultural Integration The fair combines commercial opportunities with traditional Thai dance and Muay Thai performances to drive foot traffic and consumer engagement. Entrance is free to the public. _Source: Based on event proceedings, March 2026._

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Sri Lanka High Commission Hosts Port City Investor Forum in Australia 📈

The Sri Lanka High Commission in Canberra, in partnership with CHEC Port City Colombo (Pvt) Ltd, convened a strategic Investor Forum on March 3, 2026, to attract Australian capital into South Asia’s premier multi-services special economic zone. • Key Focus: The forum highlighted the transformative potential of the Colombo Port City, showcasing its competitive regulatory framework designed to attract global investment. • Strategic Partnerships: Deputy Managing Director Thulci Aluwihare delivered a comprehensive presentation on investment opportunities, emphasizing the project's role in regional development. • High-Level Attendance: The event was attended by senior Australian officials, including the Department of Foreign Affairs and Trade (DFAT), the Australian Institute of Company Directors (AICD), and the Canberra Business Chamber. • Regional Engagement: Representatives from key Australian business hubs, including Canberra, Melbourne, and Sydney, participated, signaling a growing interest in Sri Lanka’s specialized investment zones. High Commissioner Yasoja Gunasekera underscored that the project is envisioned as a world-class hub, offering one of the most attractive regulatory environments in the South Asian region to drive economic diversification and foreign direct investment.

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### 📈 Impact of Middle East Conflict on Sri Lanka

Recent regional escalations under the Netanyahu-Trump dynamic pose significant indirect risks to Sri Lanka’s economic stability, primarily through supply chain disruptions and tourism. Key Economic Indicators & Trade • Tea Barter with Iran: US$ 62.14 Mn arrangement remains active despite low additional trade (Exports: US$ 5 Mn; Imports: US$ 2.4 Mn). • UAE Relations: 7th largest export destination at US$ 334.63 Mn; imports reach US$ 1.29 Bn, mainly sugar and bakery products. • Saudi Arabia: Exports total US$ 115.42 Mn, dominated by tea (US$ 72 Mn) and fruit & vegetables (Bananas: US$ 7 Mn). Sectoral Breakdowns • Tourism: High risk as Gulf "super-connector" airlines—carrying 25% of all passengers and 40% of European/Russian tourists—face operational hubs closures. • Energy & Agriculture: Rising costs for petroleum and fertilizer are expected. Sri Lanka imports US$ 55 Mn+ in fertilizer from Saudi Arabia, Qatar, Jordan, and Bahrain. • Labor Migration: Over 600,000 workers stationed in the UAE (350k) and Saudi Arabia (246k) are within the broader theater of conflict. Strategic Vulnerabilities • Strait of Hormuz: Critical for global commodities; 31% of urea and 18% of ammonia pass through, threatening local agricultural input prices. • Infrastructure: Conflict highlights the need for diversification in ICT/BPM (undersea cables) and aviation hubs to mitigate "single-point-of-failure" risks. _Summary based on provisional 2024/2026 data and current geopolitical events._

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### Sri Lanka–BELGOLUX Business Evening Boosts Investment Ties 📈

The Embassy of Sri Lanka in Belgium and the BELGOLUX–Sri Lanka Business Council (BLSBC) hosted a high-level networking event in Brussels on 24 February 2026 to strengthen economic partnerships with Belgium and Luxembourg. • Key Highlights & Strategic Focus: The event engaged over 55 Belgian companies and entrepreneurs, focusing on Sri Lanka’s evolving economic landscape and its strategic position within the EU trade framework. • Sector Opportunities: Discussions centered on high-growth areas including ports, logistics, tourism, and hospitality. The BLSBC was positioned as the primary institutional mechanism to facilitate these commercial ties. • Upcoming Trade Mission: A Belgian and Luxembourgish business delegation is scheduled to visit Sri Lanka from 17-21 June 2026. The mission will feature: Participation in Sri Lanka Expo 2026. Targeted B2B meetings and institutional engagements. Site visits to the Colombo Port City and other sector-specific hubs. • Outcome: The session saw strong interest from Belgian investors in the upcoming June mission, reflecting increased confidence in Sri Lanka’s structured investment models and the trade potential of the ICT/BPM and logistics sectors.

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### Strategic Analysis: The Decapitation Paradox in Modern Warfare (2026) 📈

This scenario analysis explores why traditional "leadership strikes" are failing against modern, decentralized sovereign systems, shifting the focus from individual targets to distributed architectures. • The Structural Shift: Traditional 20th-century "great man" doctrines assumed removing a leader triggers institutional collapse. In 2026, military command has evolved from a "vertebrate" model (central brain) to a "nervous system" architecture (distributed nodes), making systems nearly impossible to dismantle via surgical strikes. • Economic Attrition & Technology: Asymmetry: Low-cost autonomous tools (approx. $20,000) vs. high-cost interceptors ($2M+) create a "kinetic exhaustion" trap. Logistics: The defense of global supply chains becomes structurally unsustainable under saturation waves of inexpensive munitions. • Key Risks for Global Markets: Escalation Control: Removing a central leader deletes the "stop button," as no one remains with the sovereign authority to negotiate a ceasefire. Chokepoint Vulnerability: Automated retaliatory triggers often target critical corridors like the Suez Canal, potentially triggering global economic shocks. • National Resilience: For a high-employment, trade-dependent economy like Sri Lanka, the analysis underscores that sovereignty now depends on "intellectual survivability"—distributing ICT/BPM infrastructure and institutional C2 to avoid a single point of failure. _Note: Analysis based on strategic scenario data as of March 2026._ ---

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US-Japan $550 Bn Investment: Nuclear Power & Copper Projects Eyed 📈

• Energy & Infrastructure: Japan and the US are negotiating to include a massive nuclear power project in the second round of a $550 billion investment package. The deal involves Westinghouse (owned by Cameco and Brookfield) and aims to strengthen energy supply chains amid Middle East tensions. • Investment Scale: Westinghouse is exploring pressurized water and small modular reactors totaling up to US$ 100 Bn. This follows a previous US$ 80 Bn US government partnership with the firm to meet rising energy demand from AI data centers. • Industrial Expansion: A US$ 2 Bn copper smelting and refining facility by Falcon Copper is also under consideration. This project seeks involvement from Japanese suppliers and off-takers, highlighting a push for mineral supply chain security. • Strategic Context: Tokyo is accelerating deals to fulfill investment commitments under a US tariff agreement. To date, three projects valued at US$ 36 Bn (including an Ohio natural gas plant) have been announced. • Key Players: Potential involvement includes Japanese giants Mitsubishi Heavy Industries, Toshiba, and IHI. Official announcements are expected during Prime Minister Sanae Takaichi’s visit to Washington on March 19. _Summary based on provisional reports and ongoing bilateral negotiations._

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CB Governor Joins IMF Chief for High-Level Asia Policy Dialogue 📈

Central Bank Governor Dr. P. Nandalal Weerasinghe will represent Sri Lanka at the Asia in 2050 conference in Bangkok, joining global financial leaders to discuss regional growth and stability. • High-Level Roundtable: Scheduled for Friday, March 6, the session "Bringing Everything Together – Policy Challenges for Asia Going Forward" features IMF Managing Director Kristalina Georgieva and finance ministers from Malaysia and Thailand. • Regional Context: The dialogue focuses on Asia’s long-term growth prospects, emerging risks, and policy innovation, highlighting Sri Lanka's engagement in regional financial stability and economic collaboration. • Strategic Precursor: This event serves as a lead-up to the 2026 IMF and World Bank Group Annual Meetings (October 12–18), where global leaders will deliberate on poverty reduction, inclusive growth, and job creation. • Key Participation: The Governor's presence underscores Sri Lanka's continued involvement with the IMF and international partners as the nation navigates its long-term economic recovery and policy framework.

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Startups & Entrepreneurship

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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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## Bluechip Technologies Asia Joins SolarX APAC Program 📈

Sri Lankan-based Bluechip Technologies Asia participated in the SolarX Startup Challenge APAC Acceleration Program in Singapore (Feb 4–6), focusing on scaling clean-energy innovations across the region. • Program Overview: Hosted by the International Solar Alliance (ISA), the event brought together 14 winning startups to pitch solar-based solutions to global investors and innovation leaders. • Sector Focus: The company explored AI-driven technology collaborations, specifically targeting: Smart Analytics: Enhancing renewable energy efficiency. Forecasting: Improving power grid predictability. Decision-Support: Optimizing clean-energy resource management. • Economic Impact: This engagement highlights the growing role of the Sri Lankan ICT/BPM sector in the global renewable energy transition through cross-border collaboration and advanced AI applications. • Strategic Outcome: The program emphasized investment readiness and business scalability, positioning clean-tech as a vital vertical for digital export growth.

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## 📈 Entrepreneurship & Capital Reinvestment: Keys to National Wealth

At a recent Ambeon Securities forum, LAUGFS Holdings Chairman Dr. W.K.H. Wegapitiya emphasized that Sri Lanka’s economic recovery hinges on shifting from a "nation of employees" to a culture of entrepreneurship and capital formation. • Wealth Gap & Growth: In 1950, Sri Lanka’s national wealth was US$ 1.4 Bn (2nd in Asia). Today, GDP stands at approx. US$ 84 Bn (90th rank), while peers like Taiwan have scaled to nearly US$ 1 Tn by prioritizing private capital and manufacturing. • The Profit-to-Capital Formula: Wegapitiya argued that "profit is not a crime" but a prerequisite for investment. Economic stagnation stems from social pressures and price controls that drain corporate earnings before they can be converted into productive capital. • Strategic High-Growth Sectors: To drive future GDP, focus must shift toward: Agriculture: Target to increase GDP contribution from 10% to 36% via processing and value addition. Healthcare & Pharmaceuticals: Vital due to aging demographics (25% of population over 60 by 2030). Manufacturing: Leveraging local natural resources to ensure stable, non-volatile economic growth. Services: High potential in equity investments and financial markets. • Current Outlook: The current fiscal environment is described as the "most conducive in five years." Experts suggest moving away from low-yield savings toward equity markets for long-term capital appreciation. • Key Constraints: • Only 2% of the workforce is entrepreneurially oriented. • Need for policy consistency and dedicated development financing.

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📈 Sri Lankan Tech Giant Fcode Labs Invests in German Coffee Startup

Sri Lanka-based ICT/BPM powerhouse Fcode Labs has announced a strategic investment in Bunamo, a Germany-based digital platform for the global coffee community. This move reinforces Sri Lanka’s growing footprint in the European tech ecosystem. • The Partnership: Beyond capital, Fcode Labs is the primary engineering partner, responsible for the platform's scalable architecture and user-centered design. • Product Scope: The platform connects home baristas, professional roasters, and brands, featuring content-driven interactions like recipe sharing and brand exploration. • Strategic Impact: This collaboration highlights the export of Sri Lankan software engineering expertise, helping European startups transition from concept to production-ready platforms. • Regional Focus: Built on a cloud-ready foundation, the platform is positioned for rapid expansion across Europe and international markets. _“Our decision was driven by the fast-growing coffee community globally,”_ stated Fcode Labs Co-CEO Buddhishan Manamperi, noting the investment aligns with their mission to back global innovation through Sri Lankan technical talent.

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## 📈 ZKTOR Enters Beta in Sri Lanka: A Shift Toward Digital Sovereignty

The South Asian social media platform ZKTOR has officially entered its beta phase in Sri Lanka. Developed by Softa Technologies Ltd., the platform prioritizes digital sovereignty, privacy, and user dignity over traditional data-driven models. • Core Technology & Architecture Zero-Knowledge Principles: System architecture ensures user activity and behavioral data are inaccessible to everyone, including platform administrators. Privacy by Design: Features include multi-layer encryption and a "no-extraction" media framework that prevents unauthorized downloading of personal content. Geographically Bounded Data: All data remains within regional borders, addressing concerns regarding external data extraction and foreign control. • Governance & Independence Zero External Funding: The platform has been developed without venture capital or government grants to maintain governance integrity and avoid investor-driven data policies. Strategic Leadership: Led by Chief Architect Sunil Kumar Singh, the design incorporates Nordic principles of digital trust and restraint adapted for South Asian linguistic and cultural diversity. • Socio-Economic Impact Digital Safety: Built-in safeguards specifically target online harm and misinformation affecting women and youth. Local Ecosystem: The operating model prioritizes local technical roles and moderation, fostering youth employment in the ICT/BPM sector without exporting regional data.

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📈 BOC Targets 2,000 Entrepreneurs via Beyond Banking Initiative

The Bank of Ceylon (BOC) is scaling its Entrepreneur Development Program (EDP) to strengthen Sri Lanka’s SME sector. Following the successful revival of nearly 700 distressed businesses, the bank is shifting focus from reactive support to proactive capacity building. • Overall Targets: BOC aims to train 1,500 to 2,000 entrepreneurs from 2026 onwards. The program is free of charge and open to both BOC and non-BOC customers. • Participant Profile: Focuses on SME owners aged 18–45 with annual turnovers between Rs. 5 million and Rs. 50 million. • Sector Breakdown: Participants are primarily drawn from high-potential and core areas: • Manufacturing & Export sectors. • ICT/BPM (IT services). • Agriculture. • Key Knowledge Areas: Training covers financial discipline, cash flow management, digital marketing, supply chain, and taxation. While non-financial, the program guides SMEs on accessing concessionary loan schemes and collateral-free facilities. • Support Model: A dedicated panel of bank experts provides ongoing mentorship via a WhatsApp-based community, ensuring long-term business sustainability and employment stability.

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Sri Lanka’s SME Financing Gap: Bridging the Venture Capital Divide 📈

Small and Medium Enterprises (SMEs) remain the backbone of the Sri Lankan economy, yet a significant "financing gap" persists for those deemed too large for microfinance but too traditional for venture capital. • Overall Figures & Economic Impact: SMEs account for over 75% of all Sri Lankan businesses, contributing 52% to the national GDP and providing 45% of total employment. Despite this, they face a staggering NPL stock valued at approximately Rs. 680 Bn following recent economic shocks. • Sector & Regional Breakdown: Venture capital remains heavily concentrated in ICT/BPM and tech-driven startups in urban Colombo. In contrast, SMEs in agriculture, manufacturing, and traditional services—especially in rural regions—are often excluded due to a lack of scalability or geographical bias. • Financing Challenges: Access to bank finance is stifled by high interest rates and rigid collateral requirements. Current SME lending rates remain a hurdle, though the Budget 2026 has proposed a Rs. 7.7 Bn allocation for concessionary loan schemes with interest rates as low as 5% for certain agricultural segments. • Proposed Solutions: Experts suggest a shift toward angel investors, impact funds, and regional venture plans. The government is also consolidating support agencies (IDB, NEDA, SMED) to streamline assistance and bridge the equity gap for the "underserved majority." _Note: Summary based on provisional 2025/2026 market data and recent budget proposals._

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Real Estate

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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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📈 Home Lands Unveils Landmark US$ 300 Mn Luxury Project at Port City Colombo

Sri Lanka’s real estate leader, Home Lands Group, has announced a strategic entry into Port City Colombo with a massive independent investment, reinforcing local developer confidence in the Special Economic Zone (SEZ). • Key Financials: The group secured a 3-acre mixed-use land parcel for US$ 40.1 Mn (approx. LKR 12.5 Bn). This marks one of the largest single-developer investments by a Sri Lankan firm in the project without foreign partners. • Project Highlights: Planned US$ 300 Mn mixed-use development featuring twin 40-storey towers. The "vertical sanctuary" will offer over 600 ultra-luxury units inspired by a forest resort concept. • Strategic Location: Situated in the Central Park District, the development commands 40 acres of parkland, seamless waterway connectivity, and direct oceanfront access with beach entry. • Economic Impact: As the first Sri Lankan-led independent project of this scale in the SEZ, it signals a major boost for the construction and urban development sectors, enhancing the scope for high-value service exports and foreign investment. • National Context: Chairman Nalin Herath emphasized that the move reflects the financial strength of homegrown real estate players to deliver global-scale projects, positioning Colombo as a competitive regional lifestyle hub. 🏙️ Based on project announcement data (February 2026).

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Colombo Land Values Surge 10.6% in H2 2025 📈

The Central Bank of Sri Lanka (CBSL) reports that the Land Valuation Indicator (LVI) for the Colombo District reached 261.9 in the second half of 2025, maintaining a steady upward trajectory since 2023. • Overall Growth: The LVI increased by 10.6% YoY and 2.1% on a semi-annual basis compared to H1 2025. • Sector Breakdowns: • Residential: Recorded the highest growth, up 12.4% YoY (Index: 273.1). • Commercial: Increased by 11.3% YoY (Index: 260.6). • Industrial: Showed a more moderate rise of 8.0% YoY (Index: 251.9). • Context: The valuation, based on 2017 prices (H1 2017 = 100), covers all 13 Divisional Secretariat divisions in Colombo. The broad-based gains across real estate and infrastructure sectors reflect continued demand in the capital's land market. _Source: CBSL Statistics Department (Provisional Data)_

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Prime Lands Secures Historic Colombo 7 Property for ‘The Elizabeth’ Tower 📈

Prime Lands Residencies PLC has finalized an agreement with the Urban Development Authority (UDA) to acquire the historic Otters Club car park property. This marks a major expansion in the real estate & construction sector, targeting high-end residential demand in Colombo 7. • Strategic Acquisition: The development is set on a rare ~1-acre land parcel in a premium residential enclave. • Project Scale: Features a 23-storey residential tower titled ‘The Elizabeth’, designed as a “private residential estate in the sky.” • Unique Integration: The historic Otters Club will be integrated within the 4th and 5th floors, remaining fully independent and operational. • Luxury Amenities: Includes a grand concierge lobby, business lounge, rooftop infinity pool, sky garden, and a fitness pavilion. This project follows the success of The Grand - Ward Place, reinforcing Prime’s footprint in the luxury housing market. Early reservations are now officially open to investors and homeowners.

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📈 Prime & Melwa Secure US$ 57.6 Mn Marina Land at Port City Colombo

Sri Lankan conglomerates Prime Group and Melwa have entered a joint venture to acquire a 4-acre premium waterfront land parcel within Port City Colombo. The project, managed by Prime Melwa Port City (Pvt) Ltd, marks a significant milestone for local investment in the Special Economic Zone (SEZ). • Project Scope & Financials: The acquisition is valued at US$ 57.6 Mn. The partners plan to develop a mega ultra-luxury apartment complex with an estimated total turnover of US$ 250 Mn. Construction is slated for completion within four years. • Strategic Value: The development targets international investors, expatriates, and business travelers. Being located within the SEZ, transactions are denominated in USD, providing investors with a hedge against LKR currency depreciation and reducing long-term financial risks. • Sector Impact: This move strengthens the real estate and construction sectors' international presence. It represents the lease of the 7th out of 8 available parcels in the Marina District, reflecting a 90% land uptake in the precinct. • Economic Significance: The venture underscores local investor confidence in Port City as a global business and lifestyle destination, aimed at positioning Sri Lanka as a competitive hub in South Asia's luxury property market. Based on official project announcement data. ---

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### 🏛️ Parliament Reworks Electoral System & Formalizes Real Estate Standards

The Speaker of Parliament, Dr. Jagath Wickramaratne, has announced the formation of a Parliamentary Select Committee (PSC) to reform the electoral system for future Provincial Council elections. Separately, new legislation to regulate the real estate sector has officially come into force. Key Legislative Developments: • Electoral Reform PSC: Chaired by Minister Vijitha Herath, this committee is tasked with evaluating the current framework and recommending a suitable electoral formula (reforming or replacing the existing mixed system) to resolve long-standing delays in provincial polls. • Real Estate Act: The Sri Lanka Institute of Real Estate Professionals Act, No. 6 of 2026 was certified on February 19, 2026. This establishes a professional body to maintain ethical standards, discipline, and public interest in the real estate industry. Sector Breakdown & Implications: • Governance: The PSC includes a diverse 12-member multi-party panel, including members like R. M. Ranjith Maddumabandara and Mano Ganeshan, aimed at building national consensus on governance. • Professional Services: The new real estate act aims to formalize the sector, ensuring that professionals adhere to a statutory code of conduct, which is critical for investor confidence and national economic stability. _Note: Summary based on parliamentary announcements as of February 21, 2026._

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Kristall Spaces Lanka: Shifting Real Estate Focus to Long-Term Yields 📈

Kristall Spaces Lanka, the developer of the All-Suite Resort Talpe Heights in Galle, is introducing a vertically integrated model that moves beyond traditional property handovers to emphasize long-term asset management and investor returns. • Project Overview: The development features 56 luxury residences on Dalawella Beach, targeting the growing demand for high-end serviced residences driven by a 16.7% YoY increase in tourism arrivals. • Yield & Returns: The model aims for a consistent 8–11% annual rental yield, with total combined returns (including capital appreciation) projected at 13–20% per annum. Initial rental projections conservatively estimate 120 days of occupancy in Year 1. • Strategic Partnership: Through its associate, All-Suite Resorts Lanka, the developer provides a 10-year management commitment. This partnership utilizes dynamic yield management software and global marketing networks to optimize occupancy and pricing. • Asset Protection: Professional facility management is central to the model, addressing the "performance gap" in the condominium sector. Continuous maintenance aims to support a projected 5–10% annual capital appreciation by protecting structural integrity in harsh coastal environments. • Economic Context: CEO Simon Atterbury highlighted a 10-year strategy to develop a pipeline of 5,000 beds, aligning with national goals to expand tourism capacity while offering "turnkey" investments for local and international buyers.

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📈 Groundworth Launches "The Estate" in Hokandara

Groundworth Ltd. has officially launched “The Estate”, a premium land and luxury housing development located 700m from Vidyalaya Junction, Hokandara. The project follows the company’s recent "Special Recognition for Land Investments" at the PropertyGuru Asia Property Awards 2025. • Project Scope: Features land plots of 6 perches and above, alongside five elegantly designed luxury houses. The site includes carpeted internal roads, electricity, and pipe-borne water with fully approved deeds. • Investment Figures: Land prices start from Rs. 11.5 million. Based on provisional company data, the project offers a projected Return on Investment (ROI) of 37.5% within a two-year period. • Strategic Location: The development targets real estate growth in the Colombo suburbs, offering proximity to key hubs including Thalawathugoda, Battaramulla, and major expressway interchanges. • Economic Impact: Groundworth aims to set new benchmarks in the construction & real estate sector by focusing on high-growth, strategically located assets that serve as a "foundation of prosperity" for families and investors.

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📈 Fairway Latitude Partners with Pan Asia Bank for Luxury Housing Finance

• Overall Partnership: Fairway Properties has signed an MoU with Pan Asia Banking Corporation PLC to provide tailored home financing for its seventh luxury project, Fairway Latitude, located in Colombo 05. • Financing Framework: Prospective buyers can access flexible housing loans through tripartite agreements. The partnership offers competitive interest rates and streamlined, transparent purchasing processes to enhance accessibility to the real estate sector. • Project Progress: Construction of Fairway Latitude is actively underway with six floors already completed. The development is scheduled for full completion by 2028, featuring two to four-bedroom units ranging from 902 to 2,881 sq. ft. • Sector Impact: This collaboration supports the construction and real estate industries by integrating financial services with urban development. Fairway Holdings has already delivered over 1,000 apartments across six previous projects, including Fairway SkyGardens and Fairway Elements. • Developer & Bank Profile: • Fairway Holdings: A leading developer known for contemporary design and sustainable vertical living. • Pan Asia Bank: A licensed commercial bank focusing on customer-centric solutions, including SME and housing loans.

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📈 Real Estate: Prime Lands Achieves Key Milestone in Colombo Border Project

Prime Lands Residencies PLC (CSE: PLR) has reached a significant construction milestone with the topping out of Tower Cosmos, part of its flagship "The Colombo Border" development in Peliyagoda. The project, delivered ahead of schedule, underscores a recovery in the construction and real estate sectors. • Project Specifics: • Tower Cosmos: 20-story superstructure completed; features 152 two-bedroom apartments. • Sales Status: 100% sold out, reflecting high investor demand for urban living. • Completion Timeline: On track for final delivery by December 2027. • Scale: The broader development spans 6.5 acres along the Colombo-Kandy Road, integrating three residential towers (Brielle, Cosmos, and Amaá). • Financial & Sector Impact: • Growth: PLR reported a 43% YoY revenue increase to LKR 2.80 Bn in Q3 FY2025/26, driven by accelerated progress at this site. • Efficiency: The topping out was achieved four months ahead of schedule, highlighting the group's integrated project delivery. • Economic Context: This progress aligns with a 10.5% expansion in the national construction sector (provisional 2025 data), as the industry rebounds with improved financing conditions. • Strategic Partnerships: The project utilizes a mix of in-house expertise via Prime Construction and strategic collaboration with Sanken Construction Ltd for Tower Brielle, ensuring technical rigor and structural resilience.

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Colombo Ranks Among Asia’s Lowest-Cost Construction Markets 📈

Sri Lanka’s construction sector has entered a stabilization phase, with Colombo maintaining a highly competitive cost position in the Asian region according to the 2025 CIOB Report. • Regional Competitiveness Colombo recorded the lowest construction costs in 5 out of 6 analyzed categories, including high-rise apartments, prestige offices, and hotels. It ranks as the 2nd lowest-cost city in Asia for aggregate construction costs per m². • Material Price Trends (YoY) Key inputs saw significant reductions, aiding overall stabilization: • Reinforcement Steel: -21% • Fuel: -10% • Concrete: -1% • Cement: +3% • Currency & Inflation Impact While costs rose only 13% in USD terms from 2020–2025, they surged 81% in LKR terms due to currency depreciation. In 2025, the LKR remained stable against the USD within a 1% margin. • Labour & Sector Growth • Labour costs rose 5% in 2025, driven by skilled migration and statutory wage hikes. • The construction sector grew 12.2% in Q3 2025, contributing Rs. 499.9 Bn in Gross Value Added. • Outlook Despite upward pressure on labour and financing, the real estate and infrastructure sectors retain a regional advantage. CIOB highlights the need for joint ventures and new technology to address capacity and capital issues. _Source: CIOB Construction Cost Report 2025 (Provisional)_

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Corporate News

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📈 AIA Group Chairman Meets Foreign Minister to Discuss Expansion

Key Engagement: AIA Group Independent Non-Executive Chairman Sir Mark Tucker met with Foreign Affairs, Tourism, and Foreign Employment Minister Vijitha Herath during a two-day official visit (March 9–10, 2026). Operational Briefing: Sir Tucker provided an update on the progress of insurance operations within Sri Lanka, highlighting the group's current stability and performance. Strategic Expansion: Minister Herath formally invited AIA Group to further expand its footprint in the country, emphasizing growth in the financial services and insurance sectors. Economic Context: The discussion underscores the government's push for increased foreign direct investment (FDI) and the strengthening of the banking and finance landscape to support national recovery. _Note: Based on official government meeting briefings dated March 10, 2026._

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📈 Maharaja Foods Rights Issue Oversubscribed by 197%

Maharaja Foods PLC has successfully concluded its Rights Issue, raising Rs. 112.5 Mn after receiving overwhelming demand from shareholders. The issue was significantly oversubscribed, with total applications reaching 24.72 million shares against the 12.5 million shares offered. • Key Figures Issue Price: Rs. 9.00 per share (1-for-10 basis). Current Market Price: Rs. 13.30 (as of March 6, 2026). Total Subscriptions: 24,723,629 shares (Entitlements: 12.33 Mn; Additional: 12.39 Mn). • Strategic Fund Allocation Retail Expansion: Rs. 47.5 Mn to establish a SPAR–Maharaja SaveMore outlet in Kotahena (setup and inventory). Debt Reduction: Rs. 50.0 Mn to settle loans and overdrafts with HNB, aimed at lowering finance costs. Product Innovation: Rs. 15.0 Mn to launch a new range of ready-made rice and curry mixes, targeting the growing ready-to-eat and instant food market. The successful capital raise supports the company’s push into high-growth food processing and retail segments while strengthening its balance sheet. _Note: Based on company disclosures as of March 9, 2026._

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CEB Restructuring: Six Successor Companies to be Established from March 9 📈

The Minister of Energy has issued a Gazette Extraordinary to officially restructure the Ceylon Electricity Board (CEB), effective March 09, 2026. This move transitions the state utility into a new era of power sector management under the Sri Lanka Electricity Act, No. 36 of 2024. • New Structure: The CEB’s functions will be unbundled into six successor companies. These entities will independently manage electricity generation, transmission, distribution, and system operations. • Regulatory Milestones: The transition follows the completion of the Preliminary Transfer Plan (Jan 2026) and Cabinet approval of the National Electricity and Tariff Policies (March 2026). • Operational Planning: Key technical frameworks, including the Long Term Generation Expansion Plan and the Annual Power Procurement Plan, were finalized in February 2026 to ensure a smooth handover. • Economic Impact: This restructuring aims to modernize Sri Lanka's energy infrastructure, improve operational efficiency, and create a more transparent framework for utility management and tariff setting. The move marks the formal commencement of transferring assets and duties from the legacy CEB to the new corporate entities.

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HNB General Insurance Hits Record Rs. 11 Bn GWP in 10 Years 📈

HNB General Insurance (HNBGI) has become the fastest Sri Lankan general insurer to reach the Rs. 11 billion Gross Written Premium (GWP) milestone within a decade of operations, surpassing industry growth rates. • Overall Performance: Recorded a GWP of Rs. 11.0 Bn for 2025, reflecting a robust 21% growth YoY, significantly outpacing the industry average of 15%. The company moved up to 6th place in the national market rankings. • Sector Breakdowns: • Motor: Grew by 25% to Rs. 6 Bn. • Fire: Surged by 27% to reach Rs. 2.4 Bn. • Miscellaneous: Contributed Rs. 2.2 Bn. • Marine: Increased by 16% to Rs. 378 Mn. • Claims & Resilience: Demonstrated strong financial reliability by committing Rs. 2.5 Bn for Ditwah cyclone-related claims and paying an additional Rs. 4.7 Bn across other segments. • Financial Position: Total Assets grew by 31% to Rs. 13.38 Bn. The Capital Adequacy Ratio stands at 190%, well above regulatory requirements. Fitch Ratings recently upgraded the company’s insurer financial strength rating from A-(lka) to A (lka). • Strategic Milestone: The firm maintained a 5-year Compound Annual Growth Rate (CAGR) of 17.1% and is currently preparing for full SLFRS 17 adoption in 2026.

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📈 Hardy Jamaldeen Acquires 7% Stake in Softlogic Finance; Stock Moves to Main Board

Investor Hardy Jamaldeen has acquired a ~7% stake in Softlogic Finance PLC for over Rs. 325 million, signaling renewed market interest as the company transitions back to the CSE Main Board today. • Transaction Highlights: Hardy purchased 65.38 million shares (6.79%) at Rs. 5.00 per share from Softlogic Capital PLC. The parent group's total holding subsequently reduced from 92.41% to 84.10%. • Market Reaction: The trade triggered significant retail interest, driving the share price to a high of Rs. 7.10 before closing at Rs. 6.50. The transaction accounted for 9% (Rs. 654 million) of the day's total market turnover. • Regulatory & Board Move: The company moved from the Diri Savi Board to the Main Board today after meeting minimum public holding requirements. This follows a capital restructuring to offset retained losses against stated capital. • Financial Performance: - Profitability: Reported a 3Q FY26 profit of Rs. 5 million (up from Rs. 4.2 million YoY), though 9-month profits dipped to Rs. 12.4 million from Rs. 42 million. - Solvency: Core capital remains above the Rs. 2.5 Bn regulatory threshold. The Capital Adequacy Ratio stands strong at 51.69%, significantly above the 12.5% requirement. - Credit Rating: Obtained a ‘B’ rating from Lanka Rating Agency, its first in three years. • Outlook: With CBSL lifting all lending and deposit caps in late 2025, analysts expect improved performance for the financial services provider in FY27.

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CEB Reports Rs. 29.15 Bn Loss in 2025 Q4 📈

The Ceylon Electricity Board (CEB) has posted a significant financial downturn for the final quarter of 2025, reflecting a sharp shift in the state utility's profitability. • Quarterly Performance (Q4 2025): Recorded a net loss of Rs. 29.15 Bn for the quarter ended 31 December 2025. This represents a 4,929% decline compared to the Rs. 603 Mn profit reported in Q4 2024. • Annual Results (Full Year 2025): The total annual loss reached Rs. 38.73 Bn. This follows a highly profitable 2024, where the utility recorded a surplus of Rs. 141.60 Bn. • Economic Context: The reversal highlights ongoing volatility in the energy sector, impacting national fiscal stability and the broader power & infrastructure landscape. _Note: Based on latest financial statements as of March 2026._

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📈 Fintrex Finance Reports Massive 352% Surge in 9-Month PAT

Fintrex Finance PLC has announced exceptional results for the nine months ending December 31, 2025, driven by strong operational momentum and successful income diversification. • Overall Profitability: Year-to-date Profit After Tax (PAT) soared to Rs. 478 Mn, a 352% YoY increase. Earnings Per Share (EPS) jumped to Rs. 2.02 from Rs. 0.45. • Revenue Performance: Gross income rose 79% to Rs. 4.80 Bn. Net Interest Income (NII) surged 91% to Rs. 2.38 Bn, supported by a 61% growth in interest income and effective asset-liability management. • Income Diversification: Net fee and commission income saw a remarkable 422% YoY growth to Rs. 667.6 Mn, highlighting a shift toward non-interest-based revenue. • Balance Sheet & Assets: Total assets grew 37% to Rs. 29.8 Bn. Loans and advances expanded by 68%, while customer deposits increased 19% to Rs. 11.6 Bn. • Strategic Growth: The company is advancing its digital footprint with a new mobile banking app and targeted financing for SMEs and students. Capital was bolstered via a Rs. 500 Mn Tier II certificate issuance and a rights issue. • Stability: Impairment provisions increased in line with loan growth using conservative IFRS 9 overlays to ensure long-term resilience.

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JXG Reports Strong 9-Month Growth with Rs. 3.2 Bn Profit 📈

Janashakthi Group (JXG) delivered a resilient performance for the nine months ended 31 December 2025 (Q3 FY26), driven by its integrated financial services portfolio. • Overall Group Performance: Consolidated Revenue: Rs. 21.9 Bn (up 19.2% YoY). Net Profit After Tax (PAT): Rs. 3.2 Bn, surpassing the Rs. 2.9 Bn recorded in the previous year. Total Assets: Stood at Rs. 163 Bn, reflecting a strengthened balance sheet. • Sector & Subsidiary Breakdown: Investment Banking (First Capital): Contributed Rs. 11.4 Bn to revenue. While mark-to-market gains moderated, the stockbroking arm saw PAT surge to Rs. 166 Mn from Rs. 39 Mn YoY. Insurance (Janashakthi Insurance): Reported a PAT of Rs. 3.4 Bn for the full year. Gross Written Premiums rose 31% to Rs. 8.7 Bn, with a significant 67% growth in New Business Premiums. Finance (Janashakthi Finance): PAT reached Rs. 240 Mn. The lending portfolio showed high traction with 49% YoY growth, pushing Net Operating Income up by 35% to Rs. 2.2 Bn. • Strategic Outlook: The Group attributes its success to a disciplined "portfolio approach" and scalable platforms. Management remains confident for the final quarter of FY26, focusing on capital allocation and risk management to sustain momentum across its banking, insurance, and leasing interests.

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📈 Ceylinco Life Secures 22nd Year of Market Leadership with Rs. 44.18 Bn Premium

Ceylinco Life has maintained its dominant position in Sri Lanka’s life insurance sector for the 2025 financial year, posting strong growth across all key financial metrics and crossing the Rs. 200 Bn Life Fund milestone. • Core Financial Performance • Gross Written Premium (GWP): Rs. 44.18 Bn (↑ 18.96% YoY) • Total Consolidated Income: Rs. 72.43 Bn (↑ 10.51% YoY) • Net Profit After Tax: Rs. 7.85 Bn (↑ 10.97% YoY) • Profit Before Tax: Rs. 11.21 Bn (↑ 11.5% YoY) • Asset Base & Stability • Total Assets: Rs. 287.02 Bn (↑ 14.15%), growing at an average of Rs. 2.9 Bn per month. • Life Fund: Milestone reached at Rs. 201.81 Bn (↑ 11.56%). • Investment Portfolio: Expanded to Rs. 253.43 Bn (↑ 13.9%). • Policyholder & Shareholder Value • Benefits Paid: Rs. 31.07 Bn in net claims and benefits (↑ 24.06% YoY). • Shareholder Equity: Increased to Rs. 67.8 Bn. • Earnings Per Share (EPS): Rs. 156.94. The results underscore the resilience of the financial services industry and Ceylinco Life’s ability to maintain high trust levels, reflected in its 19th consecutive "People’s Life Insurance Service Provider" award. The company continues to play a vital role in national risk mitigation and long-term capital formation.

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Fitch Assigns 'AAA(lka)' Rating to Hayleys Rs. 7 Bn Debentures 📈

Fitch Ratings has assigned a National Long-Term Rating of 'AAA(lka)' to Hayleys PLC’s proposed Rs. 7 billion unsecured senior redeemable debentures, reflecting the group's dominant market position and diversified revenue streams. • Financial Performance & Outlook Revenue Growth: Projected to rise by 19% in FY26, driven by consumer and retail, hand protection, and purification sectors. Margins: EBITDA margin expected at 10% for FY26 (slight dip from 11% in FY25) due to textiles export softening and US tariff pressures, with recovery to 11% forecast for FY27. Leverage: Net leverage (EBITDAR) expected to steady at 3.0x–3.5x for FY26-FY28. • Sector & Market Highlights Export Strength: Direct and indirect exports accounted for 53% of FY25 revenue; 15% stems from US/EU markets. Purification: Global leader in coconut shell-based activated carbon; 45% of capacity is located in Thailand and Indonesia. Hand Protection: Manufacturing operations in Thailand leverage the world’s largest natural rubber source. Agriculture & Tea: Holds a leading supplier position in Sri Lanka’s tea export and plantation industries. • Strategic Liquidity Capex: Planned annual investment of ~Rs. 20 billion for capacity expansion. Rights Issue: Rs. 9 billion expected in FY26 to finance new investments and debt repayment. Liquidity: Supported by Rs. 55 billion in unrestricted cash and strong access to domestic banking capital.

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📈 Sierra Cables Reports Robust Growth and Global Expansion

Sierra Cables PLC has demonstrated a strong financial resurgence for the nine months ended 2025, driven by strategic oversight under Browns Investments and a focus on high-standard manufacturing. • Overall Financial Performance Revenue: Rs. 12 Bn (↑ 68% YoY from Rs. 7 Bn) Operating Profit: Rs. 2.5 Bn (↑ 70% YoY) Net Profit: Rs. 2.1 Bn (↑ 105% YoY) Earnings Per Share: Increased to Rs. 3.88 from Rs. 1.89 • Sector & Market Highlights Export Leadership: Named "Best Sri Lankan Brand Exporter" in the Electronic and Electrical Products sector. US Market Access: Remains the only Sri Lankan cable manufacturer certified to the UL 44 standard, enabling supply to the highly regulated United States market. International Footprint: Expanding reach through operations in Zambia (Browns Manufacturing Ltd) and Fiji (Cables PTE Ltd). Infrastructure Impact: Primary supplier for major local projects including Cinnamon Life at City of Dreams and the Thambuttegama Water Supply Project. • Strategic Factors Financial Discipline: Net finance costs fell 29% to Rs. 101 Mn, aided by exchange gains from export growth. Credit Rating: Maintained an A+ (lka) national rating with a stable outlook from Fitch Ratings. Innovation: Investing in specialized solutions for renewable energy and fire-resistant cables for critical infrastructure. The company’s performance reflects a structural shift toward global competitiveness, balancing domestic market depth with a diversified international presence.

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### Amana Bank Records Best-Ever Performance in 2025 📈

Amana Bank achieved its highest profitability since inception in 2025, driven by robust growth in the SME sector and core financing activities. Financial Highlights • Profitability: Profit Before Tax (PBT) surged 47% YoY to Rs. 4.1 Bn, while Profit After Tax (PAT) rose 40% to Rs. 2.4 Bn. • Efficiency: Return on Equity (ROE) reached double digits for the first time at 10.4% (vs. 8.0% in 2024). The Cost-to-Income ratio improved to 51.8%. • Income: Total Operating Income grew 16% to Rs. 10.1 Bn, supported by a 21% rise in Net Financing Income. Lending & Asset Quality • Advances: Customer advances grew by 36% (Rs. 39.6 Bn) to reach Rs. 150.9 Bn, focusing heavily on SMEs to support the national economy. • Asset Quality: Maintained an industry-leading Stage 3 Impaired financing ratio of just 1.2%. • Assets & Deposits: Total Assets grew 12% to Rs. 204.3 Bn, while deposits rose to Rs. 172 Bn with a strong CASA ratio of 45%. Stability & Shareholder Value • Capital Position: Total Capital Ratio stood at 14.7%, comfortably above the 12.5% regulatory requirement. • Dividends: Declared its 8th consecutive interim dividend of Rs. 1.30 per share (4.3% yield). • Global Standing: Recognized among the Top 50 Strongest Islamic Banks globally by The Asian Banker. New Appointment • Board Expansion: Appointed Dr. Aishath Muneeza, a global expert in Islamic finance and former Maldives Deputy Minister, as an Independent Non-Executive Director. _Note: Based on audited FY 2025 financial data._

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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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## ⛈️ Landslide Red Alert Issued for Four Districts Following Heavy Rainfall

The National Building Research Organisation (NBRO) has issued a Level 3 (Red) evacuation notice effective until 8:30 a.m. today (Feb 23), following intense rainfall exceeding 150mm within 24 hours. • High-Risk Zones (Red Alert): Immediate evacuation ordered for specific areas in Kandy (Yatinuwara, Doluwa), Kegalle (Aranayaka, Mawanella, Dehiowita), Matale (Rattota, Laggala), and Ratnapura. • Extended Warnings: Level 2 (Amber) and Level 1 (Yellow) alerts remain active for Badulla, Nuwara Eliya, Galle, Kurunegala, and Monaragala as heavy rains persist. • Economic & Safety Impact: Disruptions to plantation sector logistics and rural infrastructure are likely. Residents are advised to monitor for soil cracks, leaning utility poles, and sudden water flow changes near steep slopes. • Current Status: Based on provisional data from the NBRO; disaster management officials urge strict adherence to evacuation protocols to mitigate risks of slope failures and rock falls. 📈 ---

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Major Arrest in Akuregoda Double Murder Case ⚖️

Police have arrested a 46-year-old former Army soldier in connection with the fatal shooting of a lawyer and his wife in Akuregoda. This marks a significant development in the investigation into the February 13th attack. • Suspect Profile: The individual, a resident of Beruwala, legally discharged from the Army in 2009. He was apprehended in the Ambalangoda area by the Homagama Divisional Crime Investigation Unit. • Evidence Recovered: A mobile phone allegedly used for planning or executing the crime was seized during the arrest. • Case Context: The victims were killed inside their vehicle by two gunmen in a separate car. This arrest follows the previous detention of three other suspects accused of conspiracy and assistance in the Kottawa, Athurugiriya, and Kahathuduwa areas. • Legal Proceedings: The suspect is being interrogated by the Western Province South Crime Division and will be produced before the Kaduwela Magistrate’s Court.

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35 Years Since Northern Muslim Displacement: A Path to Reconciliation 📈

A commemorative event, “Memories of the North,” was held at the Sri Lanka Girl Guides Association in Colombo to reflect on the forcible eviction of the Northern Muslim community in October 1990. The event, featuring a documentary and photography exhibition, marks a significant step in post-war reflection and coexistence. • Historical Context (1990 Displacement) Roughly 75,000 Muslims were forced to leave the Northern Province by the LTTE within 48 hours. Evictees were stripped of belongings; many left with only the clothes they wore and minimal cash (approx. Rs. 150–3,000). Displaced families from districts like Mannar, Jaffna, and Kilinochchi faced hazardous journeys by boat to Puttalam and Kalpitiya during heavy rains. • Current Resettlement Status (as of Feb 2026) Housing & Land: A critical issue remains as many families still lack permanent housing and land deeds. New Housing Phase: The government has allocated Rs. 2,726 Mn to construct 1,363 houses in the Northern Province as part of a 7,306-unit requirement. Investment: Allocation stands at Rs. 2 Mn per house, with a 6-month completion target for the first phase. • Key Reconciliation Asks Official Apology: Activists and the NECC emphasize that a formal apology is fundamental to healing. Livelihood Support: Beyond housing, there is an urgent need for ICT/BPM and agricultural integration for the younger generation to prevent further economic marginalization. Digital Archiving: Plans are underway to create a virtual archive to preserve the history of Tamil-Muslim coexistence prior to the 1990 conflict.

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Strategic Partnership, Product & Service Launches / Business Expansions

### 📈 CSE & NSEIX Partner to Boost SL-India Capital Market Integration

The Colombo Stock Exchange (CSE) and India’s NSE IFSC Limited (NSEIX) have signed a Strategic Memorandum of Understanding (MoU) to bridge financial ecosystems between Sri Lanka and India. • Key Strategic Objectives Dual & Cross-Listings: Enabling companies to list shares on both exchanges simultaneously. This provides Sri Lankan firms access to India’s deep capital pools for growth financing. Market Access: Establishing bidirectional trading opportunities, allowing investors in both nations to access each other's markets directly. Liquidity & Visibility: Aimed at diversifying investor bases and increasing the market presence of listed entities among institutional and retail investors. • Collaborative Initiatives Product Development: Co-creating new financial instruments tailored for cross-border investors. Knowledge Sharing: Joint research, capacity building, and training programs to enhance the sophistication of the financial services sector. • Economic Impact This partnership is expected to strengthen regional financial integration, offering ICT/BPM and other high-growth Sri Lankan sectors a platform for international scaling and enhanced brand recognition.

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**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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**Product & Service Launches / Business Expansions**

United Tractors & Equipment Wins Rs. 1.4 Bn Motor Grader Tender 📈

• Overall Deal: The Cabinet of Ministers has officially approved a contract worth Rs. 1,424.25 million (excluding VAT) for the procurement of 75 motor graders. • Winning Bidder: United Tractors & Equipment (Private) Limited secured the tender following a National Competitive Bidding process, beating out four other submitted bids. • Strategic Context: The machinery is designated for use in government development programmes, signaling a continued focus on infrastructure development and construction sectors. • Procurement Process: The bid was evaluated by the High-Level Standing Procurement Committee and presented by the President in his capacity as the Minister of Finance, Planning, and Economic Development. • Status: Approved (based on cabinet meeting proceedings from October 2025 and finalized February 2026).

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HNB & CARMART Partner to Boost Peugeot and LEAP Vehicle Leasing 📈

• Strategic Alliance: HNB PLC has signed a Memorandum of Understanding (MoU) with CARMART Ltd to provide specialized leasing solutions for globally recognized Peugeot and LEAP vehicle brands. • Digital & Physical Integration: The partnership leverages the Carmart.lk platform, merging digital vehicle discovery with HNB’s financing expertise to streamline the customer journey for Sri Lankan buyers. • Key Offerings: • Tailored leasing packages designed for both individual and family mobility needs. • Focus on financial efficiency and flexibility to enhance vehicle ownership accessibility. • Integration of CARMART's automotive marketplace with HNB's retail banking network. • Economic Impact: The collaboration aims to support economic participation by providing flexible financial solutions for premium mobility, helping customers maintain quality lifestyles while achieving mobility goals. _Note: Summary based on latest partnership announcement._

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Political & Government Impact

COYLE Hosts G20 Young Entrepreneurs’ Alliance (G20 YEA) Leadership Assembly 📈

The Chamber of Lankan Entrepreneurs (COYLE) successfully concluded a five-day G20 YEA Leadership Assembly in Colombo, marking a significant milestone for Sri Lanka’s global economic integration. • Strategic Impact: Representing over 500,000 young entrepreneurs globally, the assembly focused on cross-border collaboration and high-level policy advocacy to bridge local innovation with the global G20 policy circle. • Key Engagements: Infrastructure: Delegates toured the Colombo Port City to assess its potential as a premier Special Economic Zone (SEZ) for global trade. Government Relations: Discussions held with the Ministry of Industries focused on legislative frameworks to support startup ecosystems and regional economic stability. Policy Advocacy: The G20 YEA Communiqué was handed to Foreign Minister Vijitha Herath, outlining recommendations for digital transformation, inclusive growth, and sustainable entrepreneurship. • Economic Objectives: The summit aimed to position Colombo as a burgeoning hub for international business while advocating for the removal of trade barriers and expanding access to capital for young founders. • Global Connectivity: Since joining the Alliance in 2024, COYLE has leveraged this platform to integrate Sri Lankan enterprise into the national and international economic agendas, fostering long-term bilateral ties through a high-profile Diplomats’ Evening. _Source: Based on reporting from February 20, 2026._

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**Appointments & Executive Moves**

📈 SriLankan Airlines: Restructuring & Leadership Update

The NPP administration has reaffirmed its decision to maintain SriLankan Airlines under State ownership, despite its long-standing status as a significant fiscal burden. The government is currently navigating a critical financial restructuring while searching for a new CEO to steer the crisis-ridden national carrier. • Financial Performance & Debt • Accumulated Losses: Total losses have reached a staggering Rs. 628.3 Bn (provisional data suggests this increased to Rs. 631.5 Bn by late 2025). • Quarterly Loss: The group reported a loss of Rs. 10.7 Bn for the three months ending June 2025. • State Support: The 2025 Budget allocated Rs. 20 Bn for debt servicing. The Treasury plans a Rs. 100 Bn equity injection over five years to restructure the airline's debt. • Capital Infusion: A recent Rs. 25.2 Bn capital infusion (Dec 2025) was utilized to clear outstanding state bank debt. • Leadership Transition • CEO Search: Received 200 applications for the CEO post, with 75 candidates currently shortlisted. • Criteria: The government seeks a "visionary leader" with 10+ years of senior international airline management experience. • Current Debate: Discussions continue on whether to appoint a foreign expert (like former CEOs Richard Nuttall or Peter Hill) for objectivity or a local professional to ensure national interest and cost-efficiency. • Regional Context • Unlike Sri Lanka’s state-led approach, neighboring nations are divesting: Air India was reacquired by Tata Group, and Pakistan recently privatized Pakistan International Airlines.

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**Industry & Sector News**

📈 Colombo LRT Update: Discussions with JICA Ongoing, Final Agreement Pending

Foreign Affairs Minister Vijitha Herath has confirmed that the Colombo Light Rail Transit (LRT) project has not yet received final clearance from the Japan International Cooperation Agency (JICA). • Current Status: Discussions are active, but no formal agreement has been reached. JICA is currently prioritizing the evaluation of progress on other recently resumed projects. • JICA’s Stance: The agency indicated that any decision on the LRT will be considered only after assessing the outcomes of existing infrastructure commitments. • Infrastructure Focus: While the LRT remains in the proposal stage, the government confirmed that work on multimodal transport hubs is currently underway to improve urban mobility. • Strategic Context: The government presented its LRT proposals during high-level talks last year. The project is seen as a key component for urban development and easing congestion in the Western Province, though it remains subject to JICA’s project evaluation cycle.

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**Global & International Business**

Sri Lanka Boosts Global Export Profile at Ambiente Frankfurt 2026 📈

Sri Lanka successfully concluded its participation at the world’s leading consumer goods trade fair in Germany, securing high-quality inquiries and potential export partnerships across diverse sectors. • Overall Impact: Six major Sri Lankan exhibitors joined over 4,600 global participants from 170 regions, showcasing the island’s design and manufacturing expertise to an international audience. • Sector Highlights: • Porcelain: Dankotuwa Porcelain showcased world-class dinnerware, reinforcing Sri Lanka’s reputation for premium ceramics. • Handicrafts: Gospel House Handicrafts and Art Decoration International featured sustainable, fair-trade wooden toys and creative crafts. • Home & Living: Phoenix Industries reported strong interest from new markets, highlighting the demand for innovative plastic and household solutions. • Stationery & Office: The Paperworld segment saw increased engagement for Javana Graphics and AMP Ceylon, opening doors to emerging global markets. • Strategic Value: Participation reinforced Sri Lanka's commitment to sustainability and design-led diversification, essential for reaching the national target of US$ 36 Bn in exports by 2030. • Key Exhibitors: Dankotuwa Porcelain, Gospel House Handicrafts, AMP Ceylon, Art Decoration International, Javana Graphics, and Phoenix Industries. _Summary based on official participation reports from Frankfurt._

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**Corporate News** ### Reasoning: 1. **Main Subject:** Janashakthi Insurance PLC (a specific company). 2. **Primary Action:** A **1:3 share split** (also known as a subdivision of shares). 3. **Category Fit:** Share splits are fundamental **corporate actions** decided by a company's Board of Directors. According to the predefined categories, "Corporate News" specifically includes corporate strategy, governance, and structural changes like restructuring or spin-offs. Since this is an internal administrative change to the company’s share structure—affecting the number of issued shares without changing the stated capital—it falls under **Corporate News**. 4. **Distinction:** While it affects the stock, it is a company-initiated structural event rather than a report on broad "Market News" (market trends/indices) or a "Product Launch."

📈 Janashakthi Insurance Proposes 1:3 Share Split

Janashakthi Insurance PLC (JINS) has announced a subdivision of its ordinary shares, aiming to boost liquidity and share affordability on the Colombo Stock Exchange (CSE). • Share Subdivision Details: The Board has recommended a one-for-three (1:3) split. Each existing ordinary share will be subdivided into three new shares. • Impact on Share Volume: The total number of issued shares will triple from 226.5 million to over 679.5 million ordinary shares. • Financial Position: The company confirmed that Stated Capital remains unchanged at over Rs. 4.8 Bn. As of end-September 2025, Net Assets per Share stood at Rs. 81.54. • Market Performance: Following the announcement, JINS shares closed up Rs. 2.00 at Rs. 137.75. The company’s parent, Janashakthi Ltd., maintains a controlling 74.23% stake. • Next Steps: The split is pending concurrence from the CSE and final approval from shareholders at an upcoming Extraordinary General Meeting (EGM). _Note: Based on company disclosure as of February 13, 2026._

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Industry & Sector News **

Farming Reform: Sri Lanka’s Strategy Post-Cyclone Ditwah 📈

Three months after Cyclone Ditwah (Nov 2025), the focus has shifted from emergency repair to systemic reform in agriculture and infrastructure. Total direct physical damage is estimated at US$ 4.1 Bn (approx. 4% of GDP), necessitating a shift toward climate-resilient economic planning. • Overall Economic Impact Direct Damage: US$ 4.1 Bn (based on World Bank GRADE report). Population Affected: 2.2 million people across all 25 districts. Sector Loss: Agriculture sustained US$ 814 Mn in direct damage. • Sector Breakdowns & Production Risks Paddy: Over 108,000 hectares destroyed; 90% targeted for re-sowing. Vegetables: Prices spiked 100%–350% post-cyclone due to supply chain breaks. Livestock: Massive losses include 37,000 cattle/buffalo and 475,000 poultry. Fisheries: Damage estimated between US$ 66–69 Mn. • Reform Agenda Highlights Infrastructure: Rebuilding irrigation and drainage to future-proof standards rather than historical rainfall averages. Finance: Expanding crop insurance and rapid-trigger disaster financing to prevent rural debt crises. Diversification: Moving away from "all-or-nothing" systems by promoting stress-tolerant crop varieties and ICT/BPM integration for localized early warnings. • Next Steps for Recovery FAO seeking US$ 16.5 Mn for early recovery; currently only 2.4% funded. Focus on "Build-Back-Better" irrigation and shock-responsive safety nets for smallholder farmers. _Summary based on provisional FAO and World Bank data as of February 2026._

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