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Startups & Entrepreneurship

📈 Refocusing Sri Lanka’s Innovation: Solving Local Problems for Global Growth

A critical shift is required in Sri Lanka’s startup ecosystem, moving away from "imitation" models toward solving structural domestic bottlenecks. Experts suggest that tackling lived realities offers a more sustainable path to economic resilience than chasing generic global software trends. • Core Structural Issues Despite a decade of investment in hackathons and incubators, few startups have scaled globally. The "imitation trap" sees entrepreneurs targeting markets they haven't engaged with, while ignoring high-impact local challenges. • Sector Opportunities • Agriculture: Nearly 25% of the workforce is employed here, but post-harvest losses reach 20% to 40%. Innovations in cold-chain logistics and direct buyer-linkages are vital to recover billions in lost value. • Tourism: Focus is shifting toward digitizing rural, community-based experiences to broaden the economic footprint beyond traditional hotel hubs. • Social & Institutional: Success should be measured by systemic change (like Microfinance or Logistics efficiency) rather than just venture capital attraction. • Strategic Recommendations • Prioritize funding for ventures solving real economic bottlenecks over "pitch deck" metrics. • Embed ICT/BPM and innovation training within specific sectors like Logistics, Health, and Education. • Build stronger linkages between entrepreneurs and government to ensure demand-driven solutions. • Global Scaling Solutions for Sri Lanka’s agricultural and rural connectivity issues are highly relevant to other emerging economies, positioning the country as a leader in "frugal, impact-driven innovation." _Note: Analysis based on editorial perspectives as of April 2026._

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📈 Refocusing Sri Lanka’s Innovation: Solving Local Problems for Global Growth

A critical shift is required in Sri Lanka’s startup ecosystem, moving away from "imitation" models toward solving structural domestic bottlenecks. Experts suggest that tackling lived realities offers a more sustainable path to economic resilience than chasing generic global software trends. • Core Structural Issues Despite a decade of investment in hackathons and incubators, few startups have scaled globally. The "imitation trap" sees entrepreneurs targeting markets they haven't engaged with, while ignoring high-impact local challenges. • Sector Opportunities • Agriculture: Nearly 25% of the workforce is employed here, but post-harvest losses reach 20% to 40%. Innovations in cold-chain logistics and direct buyer-linkages are vital to recover billions in lost value. • Tourism: Focus is shifting toward digitizing rural, community-based experiences to broaden the economic footprint beyond traditional hotel hubs. • Social & Institutional: Success should be measured by systemic change (like Microfinance or Logistics efficiency) rather than just venture capital attraction. • Strategic Recommendations • Prioritize funding for ventures solving real economic bottlenecks over "pitch deck" metrics. • Embed ICT/BPM and innovation training within specific sectors like Logistics, Health, and Education. • Build stronger linkages between entrepreneurs and government to ensure demand-driven solutions. • Global Scaling Solutions for Sri Lanka’s agricultural and rural connectivity issues are highly relevant to other emerging economies, positioning the country as a leader in "frugal, impact-driven innovation." _Note: Analysis based on editorial perspectives as of April 2026._

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SL Compliance Tech 'Dossiers' Wins $350K+ Google AI Credits to Fuel EM Expansion 📈

Sri Lankan regtech startup Dossiers has secured over US$ 350,000 in Google Gemini AI credits to scale its proprietary compliance database across South Asia and other emerging markets (EMs). • Funding & Technology: Initial award of US$ 100,000 in credits already deployed. The support leverages AI to structure complex data, addressing regional challenges like naming conventions (e.g., "Mohomed" or "Perera") that typically cause high false positives for Western providers. • National Economic Context: The development is critical as Sri Lanka prepares for the 2026 FATF/APG mutual evaluation. Strengthening anti-money laundering (AML) infrastructure is vital to avoid the "Grey List," which would impact international banking and recovery. • Product & Market Reach: Dossiers provides PEP Screening, Sanctions Flagging, and Customer Onboarding tools. Currently trusted by major firms including NDB Wealth Management, Sampath Securities, and Asia Securities. The firm is now raising investment to accelerate its expansion into broader South Asian markets. • Core Strength: Built by the team behind WatchDog, the platform utilizes deep investigative research and open-source intelligence to provide localized compliance data that global competitors often lack.

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

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

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The Power of Personal Branding in Modern Entrepreneurship 📈

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

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GoviLab AgriTech Accelerator Concludes Second Cohort 📈

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

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

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

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

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

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

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

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

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

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

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

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📈 SLCSMI Launches National SME Support Forum to Address Economic Challenges

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

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Industry & Sector News

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📈 Energy Crisis Alert: Supply Constraints Threaten Power Stability

Sri Lanka faces a looming energy crisis due to crude oil procurement failures, shifting the focus from affordability to the urgent need for fuel availability. • Core Supply Issues The state-owned refinery is expected to halt operations by mid-April as no crude oil shipments are scheduled until June. The absence of naphtha (a refinery byproduct) is forcing power plants to switch to more expensive diesel, further straining limited stocks. • Impact on Key Sectors Power Generation: Shortages of diesel and furnace oil may necessitate scheduled power cuts during peak evening hours. Logistics: A diesel shortfall threatens the transport of essential goods, including the movement of tea leaves from plantations to factories. • Proposed Strategic Responses Price Hikes: Increasing diesel prices above cost recovery to suppress non-essential demand and prevent black market hoarding. Rationing: Implementing QR-based rationing for the armed forces and public sector vehicle rotation systems (similar to South Korea). Prioritization: Guaranteeing fuel for goods transport and SMEs over private consumption to minimize economic disruption. • Current Status Unlike the 2022 crisis caused by a dollar shortage, the 2026 constraint is rooted in procurement and refinery logistics. Provisional data suggests furnace oil supplies remain "shaky" with a tentative shipment expected by April 14.

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🚦 Sri Lanka's Emerging Traffic Crisis & Urban Mobility

Sri Lanka is facing a significant surge in traffic congestion following the relaxation of vehicle import restrictions, posing a direct threat to national productivity. • Overall Vehicle Population: Total registered vehicles reached over 8.8 million by early 2026. Following the lifting of a five-year ban, 2025 alone saw 360,117 new registrations. • Sector Breakdown (Approximate): • Motorcycles: 4.8 million • Three-wheelers: 1.18 million • Motor cars: 910,000 • Buses: 114,000 (Nationwide) • Economic Impact: Commuters now spend over 90 minutes traveling just 20km during peak hours. The heavy reliance on private transport is driven by a lack of safety and reliability in the public transport sector, where only a fraction of the 114,000 registered buses serve the Colombo hub. • Infrastructure & Management: Road expansion in the Western Province is hitting physical limits. Challenges include inconsistent manual traffic handling at junctions and the previous cancellation of the Light Rail Transit (LRT) project. • Proposed Solutions: Experts suggest a shift toward intelligent traffic management (drone surveillance, real-time analysis), staggered office hours, and revisiting mass transit projects to reclaim lost economic hours. _Data based on 2025 registration figures and 2026 urban mobility reports._

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LPG Prices Surge as Global Energy Costs Rise 📈

Sri Lanka's primary gas suppliers, Litro and LAUGFS, announced significant price hikes effective April 5 midnight, driven by rising Saudi Aramco benchmark rates and geopolitical disruptions affecting maritime routes. • Domestic Gas Price Revisions (12.5 kg): - Litro Gas: Increased by Rs. 775 to Rs. 4,765. - LAUGFS Gas: Increased by Rs. 1,070 to Rs. 5,700. • Other Cylinder Categories: - Litro: 5 kg up by Rs. 308 (Rs. 1,910); 2.3 kg up by Rs. 140 (Rs. 890). - LAUGFS: 5 kg up by Rs. 418 (Rs. 2,280). • Economic Drivers: The price adjustments reflect escalating global energy costs and increased supplier premiums. Higher freight and insurance costs—linked to tensions in the Strait of Hormuz—and limited cargo availability in Asia due to high demand have pressured local procurement. • Supply Outlook & Festive Season: Despite the hike, Litro claims to have absorbed a portion of the cost to cushion the impact ahead of the Sinhala and Tamil New Year. Supply stability is guaranteed for April and May, with approx. 78,000 metric tons of LPG currently in floating storage or en route to the island. • Market Impact: The widening price gap between the two players remains notable, with LAUGFS implementing a steeper revision compared to Litro. Both firms continue to monitor global Brent crude trends for future adjustments.

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Banks Highlight Data Gaps in MSME Lending Constraints 📈

HNB MD/CEO Damith Pallewatte has challenged the narrative surrounding MSME financing, asserting that the primary hurdle is a lack of verifiable data and financial discipline rather than a shortage of credit or liquidity. • The Information Gap: Approximately 95% of MSME applicants lack formal financial statements. This "information asymmetry" forces banks to rely on collateral as a safeguard because cash flows cannot be independently verified. • Barriers to Modern Lending: • Cash-Based Transactions: Prevailing cash usage limits traceability and hinders the shift toward cash flow-based lending. • Product Mismatch: Traditional monthly repayment schedules often clash with the seasonal or irregular nature of small business cycles. • Capital Misallocation: Concerns were raised regarding funds being diverted into non-income generating activities, highlighting a need for better financial literacy. • Pathways to Improvement: • Digitalization: Adoption of digital business records is seen as the key to moving away from asset-backed lending. • Supply Chain Integration: Using distributor networks and value chain data to establish creditworthiness without hard collateral. • Advisory Support: Banks are increasingly focusing on advisory roles to address gaps in business planning and formalization. _Summary based on recent sector forum statements._

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📈 Strategic Expansion of Sri Lanka’s Maritime Sector

The Ceylon Association of Shipping Agents (CASA) emphasizes a multi-port strategy to maintain Sri Lanka's hub status amidst shifting global logistics and regional competition. • Port of Colombo (The Anchor) Performance: Handled a record 8.2 million TEUs in 2025. Expansion: WCT and ECT projects aim to nearly double capacity to 15 million TEUs. Strategic Role: Serving as a vital transshipment pivot as major liners reroute via the Cape of Good Hope due to Red Sea disruptions. Future: Feasibility studies underway for North Port and WCT 2 to handle bulk and energy cargo. • Trincomalee & Hambantota (Diversification) Trincomalee: Positioning as a regional energy logistics and ship repair hub, leveraging its natural depth for bulk and project cargo. Hambantota: Strengthening petrochemical logistics with the planned US$ 3.7 Bn Sinopec refinery; currently leading in RO-RO (vehicle) and dry bulk. • Strategic Value Adds Free Zones: Shifting the focus to "Agile Fulfillment" and virtual warehousing to buffer global supply chain volatility. Digitalization: Urgent call for a Single Window and Port Community System to match automation seen in regional competitors like India’s Vizhinjam Port. • National Impact By diversifying beyond containers into marine engineering and ICT-driven logistics, Sri Lanka aims to secure long-term employment and economic resilience.

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### 📈 New Shipping Route Bypasses Hormuz Blockade via Oman

A potential shift in global shipping dynamics has emerged as commercial vessels utilize a "New Shipping Route" through Oman's territorial waters to bypass Iranian-controlled passages. This development follows recent disruptions to energy supplies impacting major regional partners, including India. • Key Vessel Movements Four large vessels, including two Very Large Crude Carriers (VLCCs) and an LNG carrier, successfully transited the Musandam Peninsula. Notably, the Indian-flagged cargo carrier MSV Quba MNV 2183 was among those identified following the new path, which avoids both international waters and the recently established Iranian-mandated route. • Cargo & Logistics Impact The vessels Habrut and Dhalkut were reportedly carrying a combined 4 million barrels of Saudi and Emirati crude oil. This alternative route emerges as a critical bypass to Iran’s current transit system, which reportedly imposes a toll of US$ 1 per barrel and requires case-by-case IRGC verification. • Economic Context With nearly one-fifth of global energy supplies flowing through the Strait of Hormuz, this alternative route could provide vital relief for maritime logistics and energy security. For Sri Lanka’s broader regional trade environment, any easing of shipping pressure in the Arabian Sea is significant for maintaining stable import costs and supply chain reliability. • Operational Status Based on AIS and remote sensing data, vessels are currently using "dark" transits (turning off transponders) to navigate the Omani coast. This coincides with reported disruptions at Iran’s Qeshm naval base, potentially signaling a window of eased maritime restrictions.

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SL Agri-Crisis: Navigating El Niño & Input Volatility 📈

Sri Lanka faces a "poly-crisis" as El Niño weather extremes, Middle Eastern geopolitical tensions, and fuel price hikes threaten national food security for the upcoming Yala season. • Agricultural Inputs & Supply Gaps Urea supply is critical; while authorities claim 68,000 MT in reserve, farmers estimate a requirement of 120,000 MT for 450,000 hectares of paddy. A vital 25,000 MT shipment from Oman faces delays due to Strait of Hormuz tensions. The state has capped prices at Rs. 11,000/bag to curb market rates of up to Rs. 18,000. • Climate Strategy & Seed Innovation The "Seed Strategy" is the primary defense against heat stress and erratic rain. Drought Resilience: Fast-tracking rice variety Bg 314 and 10 new heat-tolerant lines to counter "Slow-Decaying" El Niño. Flood Resilience: Promoting "Scuba Rice" (Sub1 gene) and traditional varieties like Kurkaruppan and Goda Heenati for potential La Niña flooding. • Production Cost Surge Fuel hikes of Rs. 80–90/litre have sent paddy harvesting costs to Rs. 25,000 per acre. High diesel prices create a "vicious cycle" for irrigation-dependent farms, likely pushing rice prices up by over Rs. 10/kg. • Key Policy Recommendations Establish a real-time inter-ministerial task force to sync weather, energy, and agri-inputs. Audit fertiliser stocks to resolve discrepancies between state data and farmer unions. Prioritize fuel allocations for critical ploughing and harvesting windows.

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📈 Sri Lanka Energy Crisis Update: Policy Strains & Fuel Rationing

Sri Lanka is facing a critical energy shortage and looming blackouts, driven by global tensions in West Asia and domestic policy shifts. Escalating prices for both electricity and fuel have been implemented alongside a return to austerity measures. • Fuel & Rationing Following global oil price hikes due to the Iran conflict, the government has re-introduced the QR system. Motorists are now restricted to a weekly quota of 25 litres. To bolster reserves, the state is fast-tracking the Trincomalee Oil Tank Farm project in collaboration with India, reversing years of political opposition. • Power Generation & Subsidies The country faces a potential power deficit during the current dry season (March-May). Technical failures at the Lakvijaya Coal Plant due to substandard coal imports have forced a heavy reliance on expensive diesel for power generation, further straining limited fuel stocks. • Renewable Energy & Investment Renewable energy progress has stalled following the withdrawal of the 484MW Adani wind project and delays in 43 other green energy ventures. The Ceylon Electricity Board (CEB) reportedly incurred losses of Rs. 2 billion by curtailing renewable output. • Policy Shifts The government has amended the 2024 Electricity Act to maintain full state ownership of unbundled CEB entities. While intended to streamline, critics argue this adds bureaucracy and discourages foreign direct investment (FDI) in the power & energy sector.

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March Tourism Arrivals Dip 20% Amid Middle East Conflict 📈

• Overall Figures: Sri Lanka welcomed 183,979 visitors in March 2026, marking a 20% YoY decline. The slump is attributed to flight disruptions and increased travel costs following the outbreak of the US-Israel-Iran conflict in late February. • Quarterly Performance: Despite the March setback, year-to-date (YTD) arrivals reached 740,634, reflecting a modest 2.5% YoY growth due to a strong start in January and February. • Top Source Markets: • India: Remains the primary market with 47,533 visitors (up 26% YoY). • UK: 18,092 arrivals. • Russia: 15,685 arrivals. • Other key contributors include China, Germany, France, and the US. • Sector Impact: The decline highlights the industry's vulnerability to Middle Eastern transit hub disruptions. Daily average arrivals fell to 5,935 from 7,397 the previous year. • Policy Response: To regain momentum toward the 3 Mn arrival target, the Government has approved a free visa program for 39 countries for six months to stimulate demand and offset rising travel costs.

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Cabinet Approves Rs. 243 Bn Maha Oya Pumped Storage Project 📈

The Government of Sri Lanka has greenlit the funding for the Maha Oya Pumped Storage Hydropower Plant, a landmark initiative aimed at stabilizing the national grid and enhancing energy storage capacity. • Investment & Financing: The project is estimated to cost Rs. 243.09 billion. Funding will be secured under the provisions of the Public Debt Management Act, No. 33 of 2024. • Strategic Purpose: Implemented by the Ceylon Electricity Board (CEB), the plant will act as a critical balancing mechanism to manage excess electricity from renewable energy sources (solar and wind) and ensure a stable supply during peak demand periods. • Project Phasing: The initiative will be executed in two distinct stages: Development stage Full-scale construction • Economic Impact: By integrating large-scale storage, the project supports the modernization of the national grid. It complements existing strategies for battery storage deployment, essential for long-term energy security and the transition toward a more sustainable power sector.

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Sri Lanka Construction Sector Shifts to Expansion with Rs. 2 Tn Pipeline 📈

Sri Lanka’s construction sector is transitioning from recovery to a growth phase, driven by post-disaster rebuilding and significant public investment, according to CT Smith Securities. • Overall Growth & Outlook: The sector contributed Rs. 1.9 Tn to GDP in 2025. It historically grows at 2.8x the pace of GDP, signaling a disproportionate benefit from the current macroeconomic recovery. • Key Demand Drivers: • Reconstruction: Rs. 878 Bn (approx. 4% of GDP) required for rebuilding following Cyclone Ditwah. • Public Investment: Rs. 2 Tn allocated for 2026–2028, with 70% of Govt. capex targeting infrastructure. • Sector Allocations: Highways (48%), Irrigation (17.5%), and Housing (9.3%). • Private Sector & Credit: Credit to the construction sector rose by 15.5% YoY in 2025. Recovery is expected in condominiums, Port City developments, and renewable energy projects. • Risk Factors: • Costs: Rising energy and material prices linked to Middle East tensions. • Labour: Critical shortages due to migration and an aging workforce. • Execution: Smaller contractors face margin pressure, while larger firms remain better positioned.

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NTM Construction Wins Rs. 1.2 Bn A2 Highway Improvement Contract 🏗️

The Cabinet of Ministers has approved a significant infrastructure investment to enhance a key transport artery in the Kalutara District. • Project Scope: Improvement of four road sections covering a 9.91 km stretch of the Colombo–Galle–Hambantota–Wellawaya Road (A 002). • Investment Value: The contract is valued at Rs. 1,228.25 million (excluding taxes). • Contractor Selection: NTM Construction Ltd. was awarded the project following a National Competitive Procurement process. • Procurement Details: Out of eight bids received, NTM Construction was identified as the substantially responsive lowest evaluated bidder. • Economic Context: This project targets critical flaws in the A2 highway, a vital corridor for logistics, tourism, and regional connectivity between the Western and Southern provinces.

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Politics & Government Impact

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Geopolitical Alert: US Proposes Gulf Financing for Regional War 📈

A controversial proposal from Washington suggests Gulf states should help finance military efforts in the escalating US-Israel-Iran conflict. This "burden-shifting" move raises significant ethical and strategic concerns for regional stability. • Strategic Dilemma: The proposal pressures Gulf nations like Saudi Arabia and the UAE to fund a war led by external powers, potentially undermining their recent diplomatic efforts to de-escalate tensions with Iran. • Economic Exposure: Gulf states are already facing high costs from the conflict, including: • Increased spending on defensive systems and internal security. • Vulnerability of critical energy infrastructure and maritime routes like the Strait of Hormuz. • Economic stabilization efforts amidst regional volatility. • Key Concerns: • Transactional Security: A shift toward "pay-for-protection" alliances, blurring the lines between partnership and dependency. • Legal Risk: Financial contributions to contested military actions could lead to international legal complicity if civilian harm occurs. • Lack of Precedent: Unlike the 1991 Gulf War, this conflict lacks a broad UN mandate, making collective financing diplomatically complex.

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Tax Relief: Major Amendments to Inland Revenue Bill 2026 📈

The Sri Lankan Government has agreed to withdraw several controversial clauses from the Inland Revenue (Amendment) Bill 2026 following Supreme Court challenges and industry pushback. This move is seen as a significant win for SMEs, startups, and the insurance sector. • Key Revisions & Withdrawals: Evidentiary Lockout: The harsh proposal to bar documents not submitted within strict timelines (6–9 months) from court proceedings has been completely dropped. Thin Capitalization: Attempts to redefine "reserves" were withdrawn, maintaining judicial precedents that protect businesses from unfair tax deductions on loans during loss-making periods. Life Insurance: Proposed changes to taxable profit calculations and IFRS 17 adjustments for life insurance firms have been scrapped. • Taxpayer Relief Measures: Interest Waiver Extension: The waiver on interest for late payments, originally ending March 2023, is now extended to 31 March 2025. Condition: Full principal tax and penalties must be settled within 6 months of the Act’s commencement to qualify. • Investor & Compliance Updates: Foreign Investment: Updated terminology replaces the 'Golden Paradise' visa with the Investor Category Residence Visa. Holders remain deemed non-residents, taxed only on Sri Lankan-source income. Ongoing Disputes: Legal challenges remain regarding the criminalization of administrative defaults and fast-tracked summary trials; Supreme Court determinations are expected this week. _Source: Provisional data based on Cabinet Memorandum and Court proceedings._

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Hormuz Crisis: Trump Threatens Iran Infrastructure as Deadline Expires 📈

• Current Situation: US President Donald Trump has issued a final warning to Iran to reopen the Strait of Hormuz by today (April 6). Failure to comply may trigger US strikes on civilian infrastructure, including power plants and bridges. • Economic Impact: The Strait is a critical artery for global energy. Traffic has been halted since February 28 following US-Israeli strikes on Iran. Any prolonged closure or escalation threatens global oil price stability, impacting Sri Lanka’s fuel import costs and energy security. • Iran's Stance: Iranian officials have dismissed the threats as "war crimes" and demand compensation for war damages through a new "legal regime" of transit fees before reopening the waterway. • Regional Tensions: Logistics and shipping remain under severe pressure. Qatar and Kuwait have reported Iranian aggressions against energy facilities, further complicating the safety of maritime routes essential for Middle Eastern trade. • Key Risk: Based on provisional reports, the expiration of this deadline today places the global energy market and regional shipping & freight sectors at high risk of immediate kinetic escalation.

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📈 Post-Easter National Security & Institutional Review

As Sri Lanka approaches the seventh commemoration of the 2019 Easter Sunday attacks, public discourse remains centered on a "systemic collapse" of governance and the sensitive balance between transparency and national security. • Core Institutional Failures: Official findings from the Presidential Commission of Inquiry (PCoI) confirm a multi-level breakdown, specifically citing lapses in intelligence sharing, lack of inter-agency coordination, and deficiencies in political oversight. • Legal & Security Frameworks: Concerns have been raised regarding the selective disclosure of information by individuals with prior access to intelligence. Such actions are governed by the Official Secrets Act (No. 32 of 1955) and the Police Ordinance, which mandate strict confidentiality to protect operational integrity and the national interest. • Socio-Economic Context: • Intercommunal Relations: The report notes that fragile social cohesion remains a risk, with polarized narratives potentially marginalizing communities. • Truth vs. Narrative: Current discourse is often shaped by "simplified narratives" or "singular masterminds" which may obscure deeper structural issues necessary for long-term stability and investor confidence. • Strategic Outlook: A professional, evidence-based approach—grounded in law rather than conjecture—is deemed essential for Sri Lanka's "institutional maturity" and societal resilience. _Note: Summary based on analysis from former counterintelligence and security experts as of April 2026._

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Structural Reform Focus in Canada-TPA Economic Talks 📈

• Overall Figures & Trade: Sri Lanka maintained a strong trade surplus with Canada in 2025, with bilateral trade reaching approximately US$ 540 Mn. While the apparel sector earns over US$ 5 Bn (net of raw material imports), the tea sector generates US$ 1.2–1.3 Bn annually via a domestic value chain, making it a vital pillar for foreign exchange stability. • Sector Breakdown & Vulnerabilities: Despite the tea sector's importance, plantation communities face extreme structural disparities. Data following the recent Ditwah crisis shows that while these communities are <1% of the total population, they accounted for 11% of deaths and 28% of missing persons. Currently, over 158,000 individuals remain displaced nationwide. • Policy & Structural Reform: The Tamil Progressive Alliance (TPA) is pivoting from wage-based debates to land ownership and "structural inclusion." Key proposals include: • Establishing a Non-Territorial Community Council (NTCC) for coordinated governance. • Accelerating land allocation and permanent resettlement (stagnant for 4 months post-disaster). • Shifting international aid to specifically target underserved plantation clusters, particularly in the Kandy District. • Strategic Outlook: The TPA urges a transition from a "labour identity" to an integrated economic community. The goal is to modernize the plantation sector into a productivity-driven component of the national economy through land rights and human capital development.

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📈 Geopolitical Alert: Debt, War, and Imperial Decline

A critical analysis of global power shifts in 2026 highlights the recurring cycle of imperial overreach, mounting debt, and the fraying of maritime control, drawing direct parallels to the fall of the British Empire. • Strategic Waterways & Law: Control of "choke points" remains the bedrock of dominance. While Sri Lankan diplomat Hamilton Shirley Amerasinghe pioneered the "Constitution of the Oceans" (UNCLOS), major powers' selective adherence has led to the 2026 hostilities in the Strait of Hormuz. • The Debt Architecture: Historical empires collapsed under unsustainable debt used to fund "perpetual warfare." The US, having moved from gold-backed currency to the Petro-Dollar system, now faces a weakening of the USD reserve status as nations shift oil trades to the Yuan. • Global Market Impact: Experts warn that conflict in the Gulf could trigger 1970s-style stagflation. Disruptions to oil and gas supply chains may accelerate a global pivot toward renewable energy or hydrogen-based fuels, potentially bypassing traditional energy sectors. • Emerging Order: The BRICS alliance is actively challenging the US-dominated financial architecture, promoting trade in national currencies. This shift reflects a broader "South-South" cooperation that could redefine global trade settlements.

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Cabinet Paper and Rs. 5 Mn Relief Pledged for Malaiyaha Cyclone Victims 🏠

Prime Minister Dr. Harini Amarasuriya has committed to a special Cabinet paper to address reconstruction for the Malaiyaha community following the impact of Cyclone Ditwah. • Relief Package: Impacted families in plantation areas are to receive land and housing valued at a minimum of Rs. 5 million, matching provisions for other affected populations. • Key Demands: Civil society groups successfully pushed for the rejection of multi-storey housing, citing its unsuitability for the region’s plantation economy and culture. • Critical Issues: The meeting at Temple Trees highlighted systemic gaps in infrastructure, land rights, and the lack of Tamil language implementation in relief efforts. • Livelihoods & Equity: Discussions focused on rectifying irregularities and discrimination in aid distribution to protect the apparel & textiles and tea sector labor force residing in these regions. • Status: Based on provisional reports from the meeting; a formal media briefing by the Civil Society Collective is expected shortly to outline further pressure for full rights security.

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Cabinet Approves Rs. 331 Mn Compensation for Uma Oya-Affected Families 📈

The Cabinet of Ministers has approved a significant policy shift to provide direct financial compensation to farming families impacted by the Uma Oya Multipurpose Development Project, moving away from previous failed resettlement attempts. • Overall Figures: Approximately Rs. 1.2 million will be awarded to each of the 276 families identified as affected. This represents a total payout of roughly Rs. 331.2 million. • Context of Shift: The decision replaces a 2012 plan to provide alternative agricultural land in Hali-Ela, Walimada, and Uva Paranagama. That plan was deemed unfeasible due to land encroachments, dense forest cover, and wildlife threats. • Economic Impact: The move aims to resolve long-standing issues in the agriculture sector where farmers lost cultivable lands. By providing cash instead of remote land, the government seeks to mitigate the displacement's social and economic strain. • Status: Approved based on recommendations from a dedicated Cabinet Sub-Committee to address the project’s environmental and social challenges.

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🏠 Cabinet Expands Rs. 2 Billion Housing Support for Vulnerable Groups 📈

The Cabinet of Ministers has approved an expanded financial assistance framework aimed at long-term social reintegration for youth and low-income families through permanent housing solutions. • Overall Funding: A total of Rs. 2 billion has been allocated under the 2026 Budget, marking a significant scale-up from the initial 2025 proposal. • Individual Assistance: Eligible beneficiaries can receive up to Rs. 2 million to facilitate stable living conditions. • Target Demographics: • Youth under 45 transitioning out of institutional care. • Vulnerable families with children in unsafe/inadequate housing. • Young adults in child development centers facing reintegration hurdles. • Implementation Scope: Funds are versatile, covering land acquisition, new construction, purchase of completed homes, or renovations of existing structures. • Economic Context: This shift moves away from temporary welfare toward permanent social reintegration, addressing systemic gaps in the social safety net and housing affordability for high-risk demographics. _Note: Based on official Cabinet briefing data (April 2026)._

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📈 State Vesak Festival 2026 Set for Matara; Power Stability Guaranteed

The Cabinet has approved the 2026 State Vesak Festival, centered at the Medillawala Purana Viharaya in Matara. The government has declared May 27 to June 2 as ‘Vesak Week’ to mark Buddhist Era 2570. • Energy Supply & Infrastructure: Despite energy challenges linked to the Middle East conflict, the government has guaranteed no power cuts during the Vesak and Poson festivals. This move aims to safeguard cultural and religious life alongside economic priorities. • Grid Management Strategies: To manage the national grid effectively, the following measures have been introduced: Large-scale private events are encouraged to use independent generators or alternative power sources. Government institutions must follow energy conservation guidelines for events with over 100 participants. Private sector organizers are urged to reduce reliance on the national grid to prevent supply disruptions. • National Coordination: The festival, themed “Abhiththaretha Kalyane,” will be coordinated by the Buddhasasana, Religious and Cultural Affairs Ministry in conjunction with provincial and local government authorities. The initiative emphasizes a balance between national energy security and the preservation of significant socio-cultural events.

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### 📈 Governance & Reform Update: Political & Devolution Risks

A recent warning from senior lawyer M.A. Sumanthiran and analysis of the current administration’s trajectory highlight significant shifts in Sri Lanka’s political and administrative landscape, potentially impacting long-term stability and regional governance. Key Structural Concerns • Provincial Council (PC) System: Elections remain indefinitely postponed. A Parliamentary select committee, chaired by Foreign Minister Vijitha Herath, indicated only a preliminary report will be issued in 3 months, suggesting no clear timeline for polls. • Administrative Bypassing: Critics allege the 'Praja Shakthi' program and the appointment of 'shadow ministers' in the North are being used to bypass existing elected institutions and local civil society. • Risk of Centralization: Analysts warn of a potential shift toward a one-party state structure, which could stifle political competition and freeze future national elections. Sectoral & Regional Impact • Governance & Stability: The 'deep freeze' of the 13th Amendment framework—a cornerstone for ethnic reconciliation—is seen as a risk that could reignite radical nationalism in the North and East. • Legal & Judiciary: Concerns have been raised by the Bar Association of Sri Lanka regarding threats to the independence of the legal fraternity and judicial processes. • International Relations: Since the PC system has broad international backing (notably from India), further delays in devolution may complicate diplomatic standing and external economic cooperation. Economic Context • Systemic Risk: Sustained political uncertainty and the absence of a functioning third tier of government (PCs) may hinder localized development projects and foreign direct investment (FDI) transparency. • Policy Shift: The government appears to be moving away from 'conventional devolution' toward an undefined 'deep democracy' model, creating a period of transition with unconfirmed outcomes for regional employment and infrastructure. _Note: Summary based on provisional political commentary and reported committee proceedings as of April 2026._

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📉 US-Israel-Iran Conflict: Strategic Stalemate & Global Impact

The military aggression launched on February 28, 2026, by the US and Israel against Iran has entered its second month, shifting from a projected "swift campaign" to a protracted conflict with significant geopolitical and economic implications. • War Objectives vs. Outcomes The campaign aimed to dismantle Iran’s nuclear capabilities and trigger regime change. However, reports indicate these strategic goals remain unachieved. Iran’s political system remains intact, and the aggression has reportedly bolstered internal national unity. • Geopolitical Shifts & US Isolation The unilateral "America First" approach and actions—including tariffs and tensions with NATO allies over the Strait of Hormuz—have increasingly isolated the US. Internal discord is surfacing, evidenced by the March 17 resignation of the US Director of the National Counterterrorism Center. • Economic & Market Risks The conflict poses a direct threat to global energy security and shipping routes. The stability of the Strait of Hormuz remains a critical concern for international oil markets and global supply chains, including those affecting South Asia. • Sri Lanka’s Diplomatic Stance The Sri Lankan government has maintained a principled position of neutrality, rejecting military requests from both sides. The administration has focused on offering humanitarian assistance and declined to support unbalanced UNGA resolutions, prioritizing national sovereignty and non-alignment. • Legal & Humanitarian Context The conflict is being scrutinized under Article 51 of the UN Charter. While civilian infrastructure has suffered damage, the lack of a UN Security Council mandate has led critics to label the offensive as unprovoked aggression. _Data based on reports as of April 2, 2026._

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Economic News

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IMF Board Outlines Strategy to Curb Rising Global Imbalances 📈

The IMF Executive Board has reviewed a new framework to address widening global imbalances, emphasizing that domestic macroeconomic policies remain the primary drivers of current account positions. • Policy Impact on Trade: The analysis finds that trade restrictions and sectoral industrial policies have limited, often ambiguous effects on current accounts. In contrast, "macro" industrial policies—such as foreign reserve accumulation paired with capital flow management—can materially alter balances but often at the cost of domestic consumption. • Sectoral Implications: While micro-level policies targeting specific ICT/BPM or manufacturing firms have limited aggregate impact, the IMF noted that simultaneous domestic rebalancing across both deficit and surplus nations would boost global output. • Strategic Rebalancing: For emerging economies like Sri Lanka, the report underscores that industrial and trade policies are not substitutes for structural reforms that drive productivity growth and macroeconomic stability. • Forward Outlook: The IMF is moving toward a "multipronged approach," strengthening data surveillance and refining the External Balance Assessment (EBA) to better capture how policy shifts in major economies spill over into global markets. Durable rebalancing is deemed a "collective endeavor" requiring synchronized action across major economies.

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Private Sector Credit Surges 75% in Feb Recovery 📈

• Overall Growth: Private sector credit stock rose 26.4% YoY to reach Rs. 10.44 Tn by end-February 2026. This marks a significant recovery from the 11-month low recorded in January. • New Borrowings: Fresh credit jumped 74.7% MoM to Rs. 144.3 Bn in February, up from Rs. 82.6 Bn in January. Despite the rebound, this remains the fourth lowest monthly figure in the past year following disruptions from Cyclone Ditwah. • Sector Breakdown: • Domestic Banks: New lending reached Rs. 142.6 Bn; total outstanding rose 28.9% YoY to Rs. 9.88 Tn. • Overseas Units: Outstanding debt declined 5.5% YoY to Rs. 557.7 Bn. • Public Corporations: New loans hit Rs. 14.4 Bn in February, though total outstanding debt fell 26.6% YoY. • Government Credit: Net credit to the Government fell marginally by 1.5% YoY to Rs. 8.14 Tn. CBSL exposure rose 2.1%, while domestic bank lending to the state dropped 2.4%. • Economic Outlook: The CBSL expects interest rates to continue their downward adjustment. Despite global fuel shocks and a 30% hike in prices due to Middle East tensions, the Governor noted no immediate need for SME credit relief as non-performing loans remains stable.

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Economic Update: Dual Shocks Strain Sri Lanka’s Recovery Path 📈

Sri Lanka faces a critical policy crossroad as two severe external shocks—the Ditwah cyclone and the Mideast war—derail post-crisis recovery efforts. With "overstressed" economic conditions, traditional policy tools are proving ineffective. • Economic Performance GDP Growth: 2025 growth recorded at 5%, though historically cited as "low growth" contextually. Inflation: Long-term average (1979-2024) remains high at 11%, with current targets set at 5% (±2%). Fiscal Space: Severely limited; a mid-2025 cash surplus of Rs. 1.3 Tn is depleted by cyclone relief (Rs. 500 Bn) and pending debt restructuring. • Key Sector Impacts Remittances: A primary "forex lifeline" at risk, with 50% of inflows originating from the Gulf region currently impacted by war. Tourism & Aviation: Significant disruptions expected in arrivals and foreign exchange earnings. Energy & Agriculture: Oil prices nearing US$ 100+ per barrel; freight hikes and fertilizer import delays threaten domestic food security. • Policy Constraints Monetary Policy: The Central Bank has technical space due to low inflation but remains restricted by IMF-linked liquidity constraints. Refinery Sector: The Sapugaskanda refinery's reliance on specific Iranian/regional crudes complicates short-term energy diversification. • Outlook Based on provisional analysis, recovery requires a shift from "subsidy culture" toward high-productivity, technology adoption, and potential salary freezes to manage the overstressed economy without sufficient fiscal reserves.

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📈 Sri Lanka Ranks 134th in World Happiness Index Amid Economic and Climate Shocks

Sri Lanka’s development trajectory faces a critical turning point as the World Happiness Report 2026 ranks the nation 134th out of 147 countries, marking a historic decline and trailing behind most South Asian neighbors. • Macroeconomic Impact: The economy suffered a major blow from Cyclone Ditwah in late 2025, with losses estimated at US$ 4.1 Bn—approximately 4% of GDP. This damage surpasses that of the 2004 tsunami and has been compounded by rising fuel prices and a shrinking standard of living. • Youth & Mental Health: Generation Z (born 1997–2012) reports significant distress. Data indicates 18% of school-going adolescents experience depression, while 22.4% report loneliness. Digital exposure and excessive social media use are cited as primary drivers of declining life satisfaction. • Social Indicators: Rising substance use among youth and significant suicide-related risks, particularly among females, highlight an urgent need for targeted social interventions. Bullying remains prevalent, with a shift toward cyberbullying. • Strategic Recommendations: Establishing a "National Youth Empowerment Day" (proposed for April 25). Integrating school-based emotional learning and mental health training for education professionals. Developing a multi-sectoral task force to address resilience beyond traditional GDP metrics. _Note: Summary based on provisional 2026 World Happiness Report data and World Bank estimates._

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## Global Monetary Policy Update: Rates Held Steady Amid Middle East Tensions 📈

Major central banks largely maintained status quo in March 2026, as geopolitical volatility in the Middle East complicates the global outlook for inflation and growth. • Global Overview Central banks remain cautious due to volatile oil prices and a "bias towards higher inflation and lower growth." Policy stances are currently hovering near neutral in most nations as officials assess the magnitude of recent external shocks. • Developed Markets (DM) • 8 out of 9 central banks held rates steady. • Australia was the sole outlier, raising rates by 25 basis points (bps). • Net YTD tightening for DMs stands at 50 bps. • Emerging Markets (EM) • 10 out of 15 central banks held rates unchanged. • Russia cut rates by 50 bps, while Brazil, Mexico, and Poland delivered 25 bps cuts. • Colombia aggressively hiked by 100 bps, leading to significant domestic policy friction. • Net YTD easing for EMs totals 175 bps (375 bps in cuts vs. 200 bps in hikes). • Impact on Sri Lankan Context While the report focuses on global peers like Indonesia and the Philippines, the cautious global stance on energy prices and interest rates directly affects Sri Lanka's import costs and debt servicing environment. Heightened uncertainty continues to delay aggressive easing cycles across the ICT/BPM and apparel export-linked economies. _Note: Summary based on provisional global policy data as of March 2026._

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SL & World Bank Launch 5-Year Partnership for Growth & Jobs 📈

The World Bank Group (WBG) and the Government of Sri Lanka have launched a new Country Partnership Framework (CPF) to drive recovery and achieve a 7% medium-term economic growth target. • Financial Commitment: The partnership will mobilize over US$ 1 Bn via the IFC over five years and up to US$ 1 Bn in low-interest financing from the World Bank over the next three years. • Strategic Pillars: • Ease of Doing Business: Simplifying regulations and digitizing services to help double annual export earnings to US$ 36 Bn by 2030. • Infrastructure: Expanding the Port of Colombo and targeting 70% renewable energy by 2030 (adding 1GW of clean power). • Sectoral Growth: Focus on tourism and agriculture to create quality jobs for the 1 million youth entering the market over the next decade. • Resilience: Strengthening early warning systems following the US$ 4.1 Bn damage caused by Cyclone Ditwah in 2025. • Regional Focus: The US$ 100 Mn REVIVE Project was approved as the first initiative, targeting the Northern and Eastern Provinces. It focuses on tourism and fisheries in hubs like Jaffna and Trincomalee, aiming to create 3,000 jobs and support women entrepreneurs.

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📈 IMF Consults Opposition Leaders Amidst Concerns Over EFF Impact

The International Monetary Fund (IMF) delegation met with Sri Lankan Opposition leaders to discuss the ongoing Extended Fund Facility (EFF) program. The meeting, presided over by Deputy Speaker Dr. Rizvie Salih, focused on the socio-economic implications of the current fiscal adjustments. • Key Representation: IMF Mission Chief Evan Papageorgiou and Resident Representative Martha Woldemichael met with MPs including Dilith Jayaweera and Ravi Karunanayake. Notably, leaders from the SJB and SLPP were absent. • Economic Concerns: MP Jayaweera highlighted a strong public perception that the EFF program disproportionately burdens ordinary citizens. He argued that the current framework prioritizes creditor interests over national growth. • Growth & Strategy: Concerns were raised regarding the lack of a visible pathway for sustainable economic growth or national wealth creation. • Fiscal Discipline vs. Relief: While the IMF noted improved fiscal discipline under the current administration, the Opposition critiqued the government for failing to provide meaningful relief to the public despite its stated policy positions.

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IMF Delegation Commends Sri Lanka’s Economic Progress in Meeting with President 📈

An IMF delegation, led by Mission Chief Evan Papageorgiou, met President Anura Kumara Dissanayake today to discuss the 5th and 6th reviews of the Extended Fund Facility (EFF). • Key Economic Assessments: The IMF noted Sri Lanka’s transition to a "resilient economic footing," citing successful achievement of growth targets, improved revenue management, and the strengthening of foreign reserves. • External Risks & Energy: Discussions highlighted challenges from the Middle East conflict. The Government is reportedly managing pressures on fuel prices and the energy sector through prudent decision-making and providing targeted relief to vulnerable groups. • Commitment to Reforms: President Dissanayake confirmed that Sri Lanka has met all program targets and reached relative stability. The focus remains on maintaining this stability while minimizing the social impact on the public. • Strategic Participation: The meeting included high-level officials such as the Central Bank Governor, the Secretary to the Treasury, and the Deputy Minister of Finance, signaling a unified approach to the reform agenda.

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Lending Rates Hit 4-Year Lows While Credit Card Costs Stall 📉

• Overall Lending: The Average Weighted Prime Lending Rate (AWPR) has plummeted from a crisis peak of 24.82% in January 2023 to 9.28% as of late March 2026. This marks a return to near pre-crisis levels (8.52% in Jan 2022). • The Credit Card Disconnect: Despite the sharp drop in benchmark rates, interest on credit cards remains stagnant between 26% and 28%. This sits right at the regulatory ceiling of 28% imposed by the Central Bank in 2023. • Monetary Transmission Gap: While prime corporate lending rates fell to 8.56% in 2025 before a slight uptick this year, consumer credit for households has seen limited pass-through of the easing cycle. • Sector Impact: High unsecured lending rates continue to burden the retail and household sectors, even as the broader banking & finance landscape transitions into a lower interest rate environment for 2026.

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SL Construction Growth Eases in Feb but Remains Strong 📈

Sri Lanka’s construction sector continued its expansionary trend in February 2026, though at a slightly moderated pace compared to the previous month. • Overall Activity: The Total Activity Index recorded 70.3 in February, down from 75.0 in January, signaling a slower but steady growth rate. • Project Inflows: The New Orders Index expanded as firms reported a broader range of available projects, supported by favorable weather conditions. • Labor & Procurement: The Employment Index rose to 56.8 (from 54.2), reflecting increased hiring. Quantity of Purchases also grew to support heightened site activity. • Supply Chain Hurdles: Suppliers’ Delivery Time remained lengthened due to high demand and import delays linked to the Chinese New Year. • Future Outlook: While the industry remains positive, firms are cautious regarding downside risks, specifically rising input costs and Middle East conflict-related supply constraints. _Source: Central Bank of Sri Lanka (Provisional Data)_

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📈 CFA Society & Frontier Research to Host Macro Stability Session

CFA Society Sri Lanka, in partnership with Frontier Research, will host an evening discussion on 9 April 2026 (5-7 p.m.) at Courtyard by Marriott, Colombo. The session focuses on evaluating macroeconomic stability amidst emerging global shocks. • Current Economic Standing: Sri Lanka began 2026 with positive momentum, characterized by rare twin surpluses and improved stability. • External Risks: The discussion centers on the impact of the Middle East conflict on a small open economy. Key risks include oil price shocks, shipping disruptions, and tighter global financial conditions. • Expert Panel: Features Frontier Research’s macro team, including Chayu Damsinghe and Anjali Hewapathage, to discuss scenario-based preparedness. • Strategic Focus: Insights will cover how these global factors influence the financial markets and the broader investment landscape in Sri Lanka.

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Conflict in Middle East Threatens Sri Lankan Food Security 📈

The Kiel Institute warns of severe economic fallout for South Asia if global conflicts escalate, particularly regarding the potential closure of the Strait of Hormuz. As a nation reliant on imported inputs, Sri Lanka faces significant risks to its recovery path. • Impact on Food & Cost of Living Food prices in Sri Lanka, India, and Pakistan are projected to rise by 10% to 15% under a short-run full closure scenario of the Strait. This follows recent domestic hikes in fuel and electricity, further straining household budgets. • Welfare and Economic Losses The report estimates welfare losses for Sri Lanka between -1.8% and -3.5%. These losses are projected to be 10 to 20 times larger than those in advanced economies, highlighting the vulnerability of the South Asian region to maritime trade disruptions. • Global Context & Advocacy The Dalai Lama and Pope Leo have issued urgent appeals for the cessation of violence in the Middle East and Russia-Ukraine. The reports emphasize that the ICT/BPM, apparel, and tea sectors—vital for Sri Lanka’s foreign exchange—remain sensitive to these geopolitical shocks and rising logistics costs. _Source: Kiel Institute / Provisional Economic Data (April 2026)_

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Uncategorized

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🎶 Speranza Choir to Host ‘Worthy is the Lamb 2026’ in Negombo

Negombo-based choir Speranza has announced its upcoming sacred music production, "Worthy is the Lamb – 2026," scheduled for April 19, 2026, at the Maris Stella College Chapel. • Event Details: The performance begins at 6:30 p.m. and features a repertoire of hymns in Latin, English, and Sinhala. Key highlights include Mozart’s _Ave Verum Corpus_ and Handel’s _Worthy is the Lamb_. • Organizational Profile: Speranza (meaning "hope") consists of 25 choristers. The group was formed in 2010 by alumni of Maris Stella College and Ave Maria Convent, representing a significant intersection of the education and arts & culture sectors in the Negombo region. • Cultural Impact: The choir contributes to the local creative economy and tourism appeal of Negombo through high-standard choral performances. They have previously collaborated with international conductors like Gregory Rose and participated in major events organized by the Archdiocese of Colombo. • Community Support: While the event is open to the public, the organizers are seeking corporate sponsorships and individual goodwill contributions to sustain future initiatives in the performing arts and community enrichment. • Contact for Sponsorships: 0779071001 / 0777 51 07 87

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🕊️ Pope Leo XIV Issues Global Call for Peace in First Easter Mass

The inaugural Easter address by Pope Leo XIV, the first U.S.-born pontiff, focused on a strong message of global de-escalation and humanitarian concern. • The Message: Delivering the "Urbi et Orbi" blessing, the Pope urged global leaders to "choose peace" and abandon desires for conflict and domination. He specifically called for those with weapons to lay them down to prevent further loss of life. • Diplomatic Stance: While known as a critic of the Iran war, the Pope broke with recent tradition by not naming specific countries, instead offering a broad denunciation of global violence and the growing "indifference" toward mass casualties. • Succession: The address paid tribute to the late Pope Francis, marking a transition in Vatican leadership exactly one year after his predecessor's final Easter message. • Context: Amidst ongoing global instability, the address emphasizes the moral imperative for peace over power, signaling the new pontiff's intended influence on international discourse.

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🚨 Rs. 255.5 Mn Kush Cannabis Seizure at BIA 🚨

Sri Lanka Customs officials at the Bandaranaike International Airport (BIA) intercepted a major narcotics smuggling attempt involving high-value cannabis. • Overall Figures: A total of Rs. 255.5 million worth of ‘Kush’ cannabis was seized during the operation. • Incident Details: A 38-year-old male suspect, a resident of Ragama, was arrested while attempting to smuggle the narcotics into the country. • Economic Context: Such high-value seizures highlight the ongoing challenges in border security and the illicit trade's potential impact on the local informal economy. _Data based on provisional reports from April 4, 2026._

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As a result, a concise business or market summary cannot be generated from this specific source. If you have the associated article text or specific economic data related to this date, please provide it for a detailed analysis.

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Passing of Vidyajyothi Prof. Rezvi Sheriff: A Loss to Sri Lanka’s Medical Sector 🕊️

The Sri Lankan healthcare and academic community mourns the passing of Vidyajyothi Prof. Rezvi Sheriff (77), a foundational figure in the nation's medical services and specialized healthcare infrastructure. • Pioneering Achievements: Instrumental in establishing nephrology and transplantation in Sri Lanka. He led the country’s first-ever kidney transplant in October 1985 and oversaw more than 1,000 procedures during his career. • Institutional Impact: Founder Consultant Nephrologist of the National Institute of Nephrology, Dialysis and Transplantation. His work was critical in introducing renal disease diagnosis and dialysis services nationwide. • Academic Contribution: Served over 40 years at the University of Colombo as Senior Professor of Medicine and Head of Clinical Medicine. At the time of his passing, he was a Senior Professor at General Sir John Kotelawala Defence University (KDU). • Human Capital: Credited with training the vast majority of Sri Lanka’s current practicing nephrologists, ensuring the long-term sustainability of the healthcare workforce. • National Recognition: Recipient of the 'Vidyajyothi' title, Sri Lanka’s highest national honor for science, reflecting his lifelong dedication to medical research and public health. His legacy remains a cornerstone of Sri Lanka's healthcare system and its capacity for complex clinical interventions.

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Child Protection Crisis: Accountability Lapses in Religious Institutions 📈

A recent report by _The Examiner_ regarding alleged sexual abuse by a Catholic priest at a Kandy boys' school has reignited a national debate on the culture of impunity surrounding the Sri Lankan clergy. • Systemic Failures: The report highlights a dangerous lack of accountability. Despite repeated allegations within Catholic seminaries and Buddhist monasteries, there has not been a single successful prosecution of a priest for child sexual abuse in Sri Lanka, contrasting sharply with international trends. • Institutional Barriers: Religious bodies often handle cases internally rather than cooperating with law enforcement. This "shielding" of abusers is exacerbated by social stigma and a lack of political will to investigate figures traditionally placed on a "pedestal of unquestioned respect." • Educational Gaps: High-ranking clergy, including the Cardinal, have historically opposed comprehensive sexual health education in schools. Critics argue this leaves children unable to recognize boundaries or report inappropriate behavior, directly benefiting predators. • Economic & Social Impact: While not a direct market figure, the lack of child safety and the failure of education systems to protect the youth—a key pillar of Sri Lanka's future ICT/BPM and professional workforce—presents a significant risk to the country's social fabric and human capital development. • Call to Action: The government is urged to enforce impartial legal proceedings, ensuring that a "robe or saffron" does not grant immunity.

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

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

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🏥 Former SIS Chief Suresh Sallay Hospitalized Under Detention

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

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Navy Seizes Major Narcotics Haul off Beruwala Coast ⚓

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

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### Ranil Wickremesinghe Undergoes Successful Surgery in Singapore 🩺

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

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🚨 CID Reopens Probe into Makandure Madush Custodial Killing

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

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

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

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Product & Service Launches / Business Expansions

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President Mobilizes Banking Sector for National QR Payment Drive 📈

President Anura Kumara Dissanayake met with heads of state and private banks today to formalize the rollout of the National QR Payment Promotion Initiative, a key pillar in Sri Lanka’s digital transformation strategy. • Strategic Objectives The initiative aims to shift the public away from cash-heavy transactions toward a more efficient digital economy. The President urged banks to make QR payments more "convenient and appealing" to ensure rapid grassroots adoption. • Economic Impact & Cost Reduction Central Bank Governor Dr. Nandalal Weerasinghe highlighted that high costs associated with ATM cash services place a significant burden on the banking system. Transitioning to QR-based platforms is expected to: Reduce operational overheads for financial institutions. Provide more secure and reliable transaction methods for the public. • Banking Sector Commitment CEOs from major institutions including Bank of Ceylon, People’s Bank, Commercial Bank, Sampath Bank, and HNB affirmed their support. The ICT/BPM and financial services sectors are expected to lead this transition, with banks already implementing digital encouragement programs to align with the national agenda. • Key Leadership Presence The meeting included the Deputy Minister of Digital Economy and the Senior Presidential Adviser on Digital Economy, signaling a coordinated effort between the government and the banking and finance sector to modernize the national payment infrastructure.

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Malaysia Airlines Increases Colombo Frequencies Amid Regional Expansion 📈

Malaysia Airlines has announced a significant boost to its flight frequencies connecting Kuala Lumpur and Colombo, Sri Lanka, as part of a broader strategic expansion across Asia and Oceania. • Key Highlights for Sri Lanka: Increased flight frequencies to Colombo to meet rising demand in tourism and trade sectors. Strengthens Kuala Lumpur's role as a strategic gateway for Sri Lankan travelers heading to East Asia and Australia. • Regional Context & Expansion: Resumption of direct flights to Fukuoka, Japan (first time since 2006). New routes launched to Shenzhen and Changsha, bringing the airline's China network to 9 gateways. Frequency hikes also implemented for Brisbane (Australia) and Manila (Philippines). • Strategic Impact: The move aligns with Malaysia’s "Visit Malaysia 2026" goals and aims to capture growing business and leisure segments in South Asia. For Sri Lanka, this enhanced connectivity is expected to support the recovery of the hospitality sector by improving access for Far East and Pacific-rim travelers. _Note: Frequency increases based on official Malaysia Aviation Group (MAG) announcements for the 2026 operational year._

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📈 Hambantota International Port (HIP) Expands Capacity Amid Global Shipping Shifts

The Hambantota International Port has rapidly scaled operations to accommodate a surge in volumes driven by the Middle East crisis and subsequent diversions along the East-West shipping corridor. • Overall Growth: Yard utilization has reached historical highs, leading to a 30% increase in container yard capacity to maintain supply chain continuity. • RoRo Sector: Doubled yard capacity for Roll-On/Roll-Off (RoRo) operations to manage a significant rise in vehicle transhipment volumes. • Strategic Context: Located just 10 nautical miles from the main East-West route, HIP is being utilized as a stable alternative hub to minimize vessel deviation and schedule disruptions. • Infrastructure Investment: The expansion involved rapid scaling of yard space and operational agility, positioning the port as a resilient logistics and transhipment hub in the Indian Ocean. • Economic Impact: The shift reflects HIP’s growing role in capturing regional volumes and supporting global trade reliability during geopolitical volatility.

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New Zealand Strengthens Education Ties with First-Ever Sri Lanka Roadshow 🎓

Education New Zealand (ENZ) launched its inaugural ‘Study with New Zealand’ Roadshow in Colombo and Kandy, marking a major expansion in bilateral higher education and skills development collaboration. • Student Mobility: Sri Lankan student enrollments in New Zealand reached 3,120 between January and August 2025, reflecting a significant 57% YoY increase compared to the same period in 2024. • Institutional Collaboration: The delegation included 19 tertiary institutions, including universities and polytechnics, focusing on partnerships in agriculture, engineering, business, and technology. • Strategic Impact: Beyond student recruitment, the initiative aims to deepen institutional research and people-to-people links, building on a relationship dating back to the 1950 Colombo Plan. This supports Sri Lanka’s ICT/BPM and technical sectors through enhanced global knowledge exchange. • Key Focus Areas: The roadshow prioritized engagement with government bodies and high school counselors to promote New Zealand as a high-quality destination for specialized professional training. _Note: Enrollment figures are based on provisional data for the Jan-Aug 2025 period._

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SPAR Sri Lanka Expands Retail Footprint to Kandy and Kurunegala 📈

Network Growth: SPAR Sri Lanka has increased its total store network to 13 outlets islandwide, marking its first major expansion beyond the Western Province. Regional Impact: The new flagship outlets in Kandy and Kurunegala are timed for the festive season. The move creates 200 job opportunities for local youth, with specialized training in butchery, bakery, and retail operations. Retail Strategy: Operating as a ‘glocal’ partnership between Ceylon Biscuits Ltd. (CBL) and SPAR South Africa, the chain integrates international standards with local sourcing from over 50 local suppliers. Key Offerings: • Over 1,000 international products and 150+ private-label items. • Private-label goods are priced 10% to 15% lower than leading brands to address affordability. • Dedicated sections for fresh food, wellness, and pet care. Digital & Logistics: Enhanced e-commerce capabilities via an in-house delivery team and the SPAR Rewards App for exclusive customer discounts. _Summary based on latest company announcements._

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📈 Sri Lanka-India Dairy Capacity Building Program

A high-level delegation of 25 dairy cooperative professionals and officials from the National Institute of Co-operative Development (NICD) completed a 10-day intensive training in Pune, India, aimed at revitalizing Sri Lanka’s dairy sector. • Strategic Context: Part of India's commitment to provide 700 annual training slots for Sri Lankan professionals, following an agreement reached in April 2025. • Training Focus: Hosted by VAMNICOM, sessions covered cooperative business models, dairy processing technologies, quality assurance, and value chain development. • Field Exposure: Included site visits to global leaders like AMUL, Sahyadri Farms, and Katraj Dairy to study large-scale milk collection and processing ecosystems. • Economic Impact: Aims to boost national food security and rural employment by adopting successful cooperative models to improve local milk production efficiency. _Note: Program conducted from 9–19 March 2026._

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Colombo Dockyard Commences Construction of High-Tech French Vessel 🚢

Colombo Dockyard PLC (CDPLC) has officially laid the keel for Yard No. 0263, an ultramodern cable-laying and repair vessel commissioned by France’s Orange Marine. This project marks a significant expansion of Sri Lanka’s footprint in the European shipbuilding market. • Vessel Specifications: The ship measures 100m in length with an 1,800 DWT capacity. Designed by VARD Design AS (Norway), it focuses on low fuel consumption and advanced sea-keeping for sub-sea cable operations. • Strategic Impact: The project reinforces the maritime and engineering sector's role in high-value exports and strengthens economic ties between Sri Lanka and France. • Key Partners: Construction adheres to Bureau Veritas standards and French Flag Authority regulations. CDPLC operates in collaboration with India’s Mazagon Dock Shipbuilders Ltd, which holds a 51% stake. • Timeline: Based on current schedules, the vessel is set for delivery in early 2028. This venture highlights Sri Lanka's capability in the ICT/BPM infrastructure supply chain, as the vessel will support global telecommunications and energy submarine cable networks.

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Sri Lanka Brand Forum Launches to Redefine Business Purpose 📈

The Sri Lanka Brand Forum (SLBF) officially launched this week, introducing a platform aimed at transforming the national business landscape through purpose-led growth and global competitiveness. • Core Objectives: The initiative seeks to transition businesses from traditional profit models to frameworks embedded with sustainability, innovation, and social impact. It specifically addresses the "BANI" (Brittle, Anxious, Nonlinear, Incomprehensible) global environment. • Strategic Pillars: The forum will operate across four key focus areas: Leadership & Branding Innovation & Sustainability • Key Event: The inaugural Leadership Summit, themed "Resilience Redefined," is scheduled for 18 May 2026. It will feature global experts, including Professor David Aaker and former Unilever South Asia Chairman Sanjiv Mehta. • National Context: With Sri Lanka's 100th independence anniversary approaching, the SLBF emphasizes a 10-15 year window to maximize human capital. It aims to bridge gaps between industry, academia, and young professionals (Gen Z/Alpha) to shape a credible national brand identity. • Outlook: Organizers stress that current economic and technological disruptions are a "new normal," requiring a structural shift in how apparel, services, and other core sectors define value and accountability.

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Lankem Ceylon Invests Rs. 3 Bn in Sri Lanka’s First SSP Fertiliser Factory 🌾

• Lankem Ceylon PLC has launched ‘Mada Raja,’ the nation’s first locally manufactured Single Super Phosphate (SSP) fertiliser, via its subsidiary Lankem Minerals Ltd. • The project involves a Rs. 3 Billion investment in a state-of-the-art facility located in the Anuradhapura district, boasting an annual production capacity of 50,000 metric tons. • Strategic Economic Impact: Reduces import dependency by meeting up to 80% of Sri Lanka's annual SSP requirements. Utilizes domestic raw materials by sourcing 30,000 metric tons of Eppawala Rock Phosphate annually from Lanka Phosphate Ltd. Strengthens the national value chain and generates regional employment. • Sector Benefits: The fertiliser is critical for the paddy, tea, coconut, and oil crops sectors. In the tea industry, the added sulphur content is noted for enhancing leaf chemistry and cup quality. Provides a nutrient-dense alternative to Triple Super Phosphate (TSP) by including calcium and sulphur to address soil deficiency. • This initiative marks a major shift toward agricultural self-sufficiency and long-term soil health management for Sri Lanka.

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🏢 Unilever Sri Lanka Relocates Head Office to Mireka Towers

After 87 years at its Grandpass premises, Unilever Sri Lanka has officially moved its corporate headquarters to the Mireka Towers in Colombo. This transition marks a significant shift toward a "future-fit" workspace designed to enhance collaboration and innovation. • Strategic Shift: The move follows over a century of operations in the country, signaling a commitment to long-term growth and modernization within the local market. • Core Portfolios: The new hub will drive innovation across personal care, home care, beauty, and food sectors to meet evolving consumer demand. • Economic Outlook: Chairman Ali Tariq emphasized the move as an investment in local talent and a "winning Sri Lanka," focusing on shaping the next generation of the FMCG industry. • Context: The relocation signifies a move from traditional industrial sites to high-rise commercial spaces, reflecting broader trends in Colombo’s corporate real estate landscape. 📈

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JICA Resumes Funding: Rs. 1.44 Bn Water Project Awarded to Joint Venture 📈

• Project Overview: The Cabinet has approved a major contract under Phase II of the Anuradhapura North Water Supply Project. This marks a significant milestone as funding from the Japan International Cooperation Agency (JICA) resumes following a prior suspension. • Contract Details: The contract was awarded to a joint venture between Ceylex Engineering Ltd. and Jayanthi Super Construction Ltd. for JPY 763.75 Mn (approximately Rs. 1.44 Bn). The JV was identified as the lowest responsive bidder. • Regional Impact: The project targets 164 Grama Niladhari Divisions across Padaviya, Kabithigollewa, Horowpathana, Kahatagasdigiliya, Rambawa, and Madawachchiya. It aims to provide safe drinking water to regions currently reliant on unreliable groundwater. • Economic Context: Originally stalled in 2022 due to funding halts, the reinstated project includes price escalation clauses to account for cost changes over the delay period. This infrastructure development is critical for addressing public health risks and water security in the North Central Province.

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NDB Bank Launches 'NDB Rewards' Digital Ecosystem 📈

NDB Bank has officially rolled out its new NDB Rewards program (effective 1 March 2026), transitioning credit card benefits into a fully digital, points-based ecosystem tailored for the banking & finance sector. • Core Mechanics: Eligible cardholders earn reward points on local and international transactions. Points carry a transparent value of LKR 1 per Point, simplifying the benefit calculation for consumers. • Earning Potential: The program incentivizes specific lifestyle spending through bonus multipliers: Up to 5X on international spend. Up to 2X on domestic lifestyle categories (dining, lodging, and travel). • Redemption & Partnerships: Points are redeemable across 180+ partners in retail, leisure, and supermarkets via the Thyaga.lk platform. The minimum redemption threshold is set at 2,000 points, with a two-year validity period. • Eligibility & Integration: Platinum and above cardholders with an active NDB account are automatically enrolled. Supplementary card spends aggregate into the primary account, accelerating point accumulation. Redemption is entirely digital via QR codes and OTP authentication, eliminating paper vouchers.

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Global & International Business

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📈 Malaysian Investment Delegation Explores Sri Lankan FDI Opportunities

A high-level 15-member delegation from the Malaysian Indian Chambers of Commerce and Industry (MAICCI) Penang recently concluded a strategic visit to the Board of Investment (BOI) to explore diverse investment landscapes in Sri Lanka. • Core Objective The mission focused on promoting foreign direct investment (FDI) across high-growth sectors, leveraging Sri Lanka’s strategic location and the Colombo Port City ecosystem. • Sectoral Interest & Focus Areas The delegation represented a wide array of industries, with specific interest shown in: Renewable Energy: Solar energy-saving solutions. ICT & Digital Infrastructure: Data centers, cybersecurity, and software solutions aligned with Sri Lanka's Industry 4.0 goals. Manufacturing: Aviation parts, oil and lubricants, and Original Equipment Manufacturing (OEM). Value-Added Agriculture: Agri-processing, spice value chains, and Halal-certified food manufacturing. Sustainability: Waste management and recycling (plastic and metal). • Strategic Facilitation The Information Communication Technology Agency (ICTA) and GovTech outlined the national digital transformation roadmap to improve the ease of doing business. The Urban Development Authority (UDA) presented commercially viable land in Colombo for real estate, tourism, and education projects. The Export Development Board (EDB) highlighted the "Made in Sri Lanka" brand equity as a launchpad for global market access. • Operational Exposure The visit included a field assessment of the Katunayake Export Processing Zone (EPZ) and engagements with the Malaysian Business Council to solidify bilateral industrial partnerships.

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Sri Lanka Suspends Tea-for-Oil Barter Deal with Iran 🫖

Sri Lanka has temporarily halted its unique barter arrangement with Iran to prevent exceeding specific financial repayment limits. • Current Status: The suspension was confirmed by the Sri Lanka Tea Board (SLTB) following reaching thresholds related to the Ceylon Petroleum Corporation (CPC). • Financial Cap: The move is a strategic pause to avoid surpassing the US$ 250 Mn repayment target stipulated under the original agreement for past oil purchases. • Economic Context: The deal, which allows Sri Lanka to settle outstanding fuel debts by exporting tea, has been a critical mechanism for the tea industry to maintain access to the Iranian market while managing foreign exchange liquidity. • Market Impact: Based on provisional data, this suspension is temporary and intended to manage the balance of trade within the agreed framework. _Source: SLTB (April 6, 2026)_

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India-Sri Lanka Economic Partnership: Moving from Patronage to Strategic Synergy 📈

The relationship between India and Sri Lanka is transitioning toward a formal, mutually beneficial partnership to mitigate global geopolitical shocks and ensure long-term stability. • Energy Security: To counter Middle East instability and high insurance costs, India recently supplied 38,000 MT of fuel. Key proposals include an undersea oil pipeline and grid connectivity. Sri Lanka aims to export solar and wind power to Southern India, turning a dependency into a revenue-generating partnership. • Financial Integration: Transitioning to Indian Rupee (INR) and Lankan Rupee (LKR) trade via UPI platforms is highlighted to reduce USD dependency and exchange rate volatility. • Investment & Trade: Sri Lanka is positioned as a primary "port of call" for Indian outbound investment, which reached US$ 30 Bn globally in 2025. Areas for integration include: Logistics & Ports: Activating North and East ports to access South Indian markets. Standards Alignment: Harmonizing food, legal, and investment protocols to ease business. Infrastructure: Potential physical bridge connectivity to integrate supply chains. • Strategic Outlook: Shifting the narrative from "emergency aid" to a "partnership of equals" (similar to Australia-NZ), focusing on energy, ICT, and investment to buffer against climate and geopolitical risks.

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### Sri Lanka and Russia Strengthen Strategic & Economic Ties 📈

Minister Bimal Rathnayake’s official visit to Moscow has reinforced long-standing bilateral relations, focusing on high-level parliamentary, energy, and transport cooperation. • Strategic Diplomacy: Discussions with the Federation Council and State Duma focused on enhancing parliamentary ties and establishing friendship groups to facilitate regular legislative exchanges. Both nations committed to a joint celebration for the 70th anniversary of diplomatic relations in 2027. • Energy & Infrastructure: A pivotal meeting with the Russian Energy Ministry addressed Sri Lanka’s request for enhanced cooperation in the energy sector. This follows recent technical engagements in Colombo aimed at securing stable energy partnerships. • Transport & Logistics: The Minister is scheduled to represent Sri Lanka at the International Transport and Logistics Forum in St. Petersburg (April 1-4). The focus remains on improving transport connectivity and regional logistics frameworks to boost trade efficiency. • Economic Engagement: Beyond official state meetings, talks with the Moscow City Government explored broader urban development and institutional ties, aimed at diversifying economic cooperation beyond traditional sectors. _Source: Ministry of Foreign Affairs (Provisional Data)_

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📈 Global Crisis Response: IMF, World Bank, & IEA Align to Support Vulnerable Economies

The heads of the IMF, World Bank, and IEA have formed a joint coordination group to mitigate severe economic and energy shocks caused by the ongoing war in the Middle East. The crisis has triggered one of the largest energy supply shortages in history, disproportionately impacting low-income, energy-importing nations like Sri Lanka. • Global Market Impact: Sharp increases in prices for oil, gas, and fertilizers are heightening food security concerns. Supply chain disruptions are noted in commodities such as helium, phosphate, and aluminum. • Tourism & Logistics: Significant disruptions at Gulf hubs have led to flight cancellations, directly affecting the tourism sector and international travel routes. • Macro-Financial Risks: Rising market volatility and weakening currencies in emerging markets are driving inflation expectations, likely leading to tighter monetary policies and weakened GDP growth. • Sri Lankan Context: As a net energy importer with existing debt challenges, the ICT/BPM and apparel & textiles sectors may face rising operational costs. The coordination group will provide targeted policy advice and assess potential concessional financing needs to stabilize balance of payments. • Action Plan: The institutions will coordinate data sharing on trade flows and fiscal pressures while mobilizing multilateral partners to provide risk mitigation tools for highly exposed nations. _Summary based on joint institutional data as of April 2, 2026._

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International Fact-Checking Day: Combatting AI-Driven Misinformation 🛡️

The World Economic Forum’s Global Risks Report 2026 identifies misinformation and disinformation as the second most severe short-term global risk. On International Fact-Checking Day (April 2), Fact Crescendo Sri Lanka highlights the urgent need for information integrity in a landscape increasingly shaped by AI-driven manipulation. • Global Risk Profile: Misinformation is now a deepening structural risk to democracy, public health, and economic stability. It has consistently ranked as a top critical threat, now exacerbated by AI's ability to generate deepfakes and viral narratives in seconds. • Domestic Impact: In Sri Lanka, false narratives and manipulated content have fueled communal tensions, shaped public opinion, and enabled financial scams targeting citizens. • Sector Response: Fact Crescendo, an IFCN-certified body, collaborates with technology platforms like Meta to review and contextualize misleading content. They provide verification services in Sinhala, Tamil, and English to ensure linguistic inclusivity across the country. • Call to Action: Combating misinformation is framed as a "civic responsibility." Every Sri Lankan is urged to "pause and verify" before sharing. • Public Verification: A dedicated WhatsApp hotline (+94771514696) is available for the public to submit suspicious content for evidence-based verification. 📈

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Sri Lanka Strengthens Commonwealth Ties at London Ministers’ Meeting 🌍

Sri Lanka reaffirmed its commitment to international cooperation during the 26th Commonwealth Foreign Affairs Ministers Meeting (CFAMM) and the Commonwealth Day events held in London. • Delegation & Representation: High Commissioner to the UK, Nimal Senadheera, led the Sri Lankan delegation at Lancaster House. Formal interventions were submitted to the Commonwealth Secretariat outlining the national stance on global challenges. • Key Strategic Pillars: Sri Lanka’s contributions focused on: Economic Cooperation: Enhancing trade and financial synergy among the 56 member states. Sustainable Development: Advancing long-term growth and climate resilience. Environmental Sustainability: Promoting collaboration to address shared ecological risks. • Diplomatic Engagement: Participation extended to Commonwealth Day ceremonies at Westminster Abbey and Portcullis House. These engagements underscore Sri Lanka’s focus on diversification of diplomatic partnerships to foster shared prosperity and regional stability. • Context: The meetings highlighted the Commonwealth’s role as a platform for addressing development gaps and strengthening employment and investment links across member nations.

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Sri Lanka and Kazakhstan Move to Strengthen Economic and Diplomatic Ties 🇰🇿

Sri Lanka’s Ambassador to Kazakhstan (resident in Moscow), Shobini Gunasekera, recently presented credentials in Astana, marking a strategic push to deepen engagement with Central Asia. • Economic & Trade Outlook: Both nations emphasized expanding collaboration in trade and investment, energy, and education. A Kazakh business delegation is expected to attend the International Expo in Sri Lanka in June 2026. • Connectivity & Tourism: Discussions prioritized improving bilateral links through direct air connectivity and the formal signing of an Air Services Agreement to boost tourism and business exchanges. • Institutional Cooperation: Key proposals include convening bilateral political consultations in early 2026 and establishing a Parliamentary Friendship Group to enhance legislative collaboration. • Future Milestones: With 2027 marking the 35th anniversary of diplomatic relations, both sides committed to elevating ties through the Central Asia Dialogue in Colombo and increased people-to-people connections.

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Sri Lanka & Myanmar Strengthen Bilateral Economic & Trade Ties 📈

• Diplomatic Engagement: Ambassador Prabashini Ponnamperuma held high-level discussions in Nay Pyi Taw with Myanmar’s Union Ministers for Foreign Affairs and Investment to bolster bilateral cooperation. • Strategic Sectors: Discussions prioritized growth in trade, investment, agriculture, and services. The meetings aimed at diversifying economic activities and enhancing sectoral collaboration to support national growth. • Investment & Cooperation: Talks with the Ministry of Investment and Foreign Economic Relations focused on streamlining foreign economic relations and identifying new opportunities for joint ventures. • Bilateral Support: Beyond economic ties, Sri Lanka expressed gratitude for Myanmar’s assistance in the rescue and repatriation of Sri Lankan nationals from illegal scam centers, reinforcing diplomatic and security cooperation. • Context: These meetings underscore Sri Lanka's efforts to expand its economic footprint within the ASEAN region through services and trade diversification. 🇱🇰

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European Tea Delegation Strengthens Ties with Sri Lankan Tea Industry 📈

An 8-member delegation of tea growers from the Netherlands, Portugal, France, Spain, and Belgium concluded a week-long visit to Sri Lanka (March 23–30, 2026), aimed at fostering international collaboration. • Strategic Collaboration: The initiative, facilitated by the Embassy of Sri Lanka in the Netherlands and the Sri Lanka Tea Board, focused on connecting European small-scale producers with local artisanal tea experts. • Knowledge Exchange: The tour included visits to diverse tea plantations and the historic Colombo tea auction site, providing European growers with technical insights into the tea production and trade history of the island. • Economic Impact: By engaging with the Ceylon Artisanal Tea Association and the Ceylon Chamber of Commerce, the visit aimed to secure long-term partnerships in specialty tea production, education, and trade. • Positioning: The mission reinforces Sri Lanka’s global profile as a hub for sustainable tea and high-value artisanal products, supporting the diversification of the tea sector beyond traditional commodity exports.

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📈 DFCC Bank Highlights Shifting Dynamics in Sri Lanka’s Export Sector

• Strategic Shift: Export operations are moving from aggressive growth to a "measured expansion" approach, prioritizing discipline over speed due to unpredictable global trade routes and volatile costs. • Critical Risk Factors: • Foreign Exchange: Now a primary decision-making factor; sharp currency movements have increased the cost of misjudgment. • Payment Risks: Exporters face longer settlement timelines and heightened counterparty risks, particularly in non-traditional markets. • Capital Constraints: Growth strategies are now heavily weighted against working capital limitations and stringent compliance requirements. • Evolving Financial Needs: Beyond basic funding, the apparel, tea, and value-added sectors are increasingly demanding integrated treasury, trade services, and advisory support to protect margins. • Outlook: While demand for diversification remains strong, the operating environment is described as "less forgiving," requiring firms to focus on navigating cross-border complexities rather than volume alone.

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📈 SL-Benelux Business Council Strengthens Trade Ties with Netherlands

The Sri Lanka–Benelux Business Council (SLBBC) recently met with the Dutch Ambassador to enhance private-sector collaboration, marking nearly 30 years of regional engagement and ahead of the 75th anniversary of diplomatic relations in 2026. • Strategic Focus Areas: Discussions centered on leveraging Dutch expertise in logistics, port development, water management, and sustainable agriculture to align with Sri Lanka’s strategic maritime position. • Investment & Cooperation: The Council is promoting Sri Lanka as a key destination for Dutch investment, focusing on renewable energy and maritime services as high-growth sectors for bilateral trade. • Upcoming Initiatives: Planned activities include sector-focused business forums and networking events designed to increase business-to-business (B2B) engagement between both nations. • Next Steps: The SLBBC will submit a concept note outlining priority sectors to formalize future engagement and strengthen economic links between Sri Lanka and the Netherlands.

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Corporate News

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RDB Records 86% Profit Surge in Milestone 40th Year 📈

The Regional Development Bank (RDB) reported a landmark financial performance for the year ended 31 December 2025, significantly boosting its role in inclusive economic progress. • Financial Highlights: - Profit After Tax (PAT): Rs. 2.37 Bn (+86% YoY). - Total Income: Rs. 42.81 Bn. - Net Interest Income (NII): Rs. 24.23 Bn (+23.89% YoY). - Efficiency: ROA improved to 1.7% and ROE rose to 11.77%. • Lending & Sector Impact: - Total Loans & Receivables: Rs. 302.54 Bn (+23.59% YoY). - Key Focus: Direct support for agriculture, SMEs, manufacturing, and rural enterprises. - Asset Quality: Significant improvement in the Stage 3 impaired loans ratio, dropping to 4.06% from 6.25%. • Deposit Growth & Reach: - Total Deposits: Rs. 283.72 Bn (+11.85% YoY). - Footprint: Operates via 272 branches serving over 6 million customers, primarily in underserved regions. The bank’s 2025 results reflect a resilient model balancing financial stability with national development mandates, focusing on financial inclusion and digital transformation for 2026.

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Siyapatha Finance PLC Reports Robust 29% Profit Growth for FY25 📈

Siyapatha Finance PLC has posted exceptional financial results for the year ended 31 December 2025, driven by strategic expansion and efficient asset management. • Core Financials Profit Before Tax (PBT): Rs. 2,660 Mn (+26% YoY) Profit After Tax (PAT): Rs. 1,556 Mn (+29% YoY) Net Interest Income: Rs. 5,561 Mn (up from Rs. 4,533 Mn in 2024) Net Fee & Commission Income: Rs. 499 Mn (+44% YoY) • Balance Sheet & Assets Total Assets: Increased to Rs. 84.74 Bn (from Rs. 59.71 Bn) Leasing & Hire Purchase: Grew by 23% Gold Loans: Surged by 63% Total Equity: Rs. 10.04 Bn (up from Rs. 8.45 Bn) Net Asset Value per Share: Rs. 99.79 (vs. Rs. 84.18 in 2024) • Operational Highlights SME Financing: Strong demand fueled by rapid branch network expansion. Operating Efficiency: Operating profit before taxes rose 26% to Rs. 3,662 Mn due to cost optimization. Banking & Financial Services: Solidified position in the non-banking sector through digital service enhancements and workforce upskilling. The results underscore Siyapatha’s resilience and its critical role in supporting SME and micro-finance segments during volatile economic conditions.

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NSB Submits 2025 Annual Report to Treasury 📈

The National Savings Bank (NSB) officially presented its Annual Report for the 2025 financial year to Treasury Secretary Dr. Harshana Suriyapperuma at the Ministry of Finance. • Institutional Governance: The presentation by Chairman Dr. Harsha Cabral PC and Actg. CEO Rohana Bandara Weerakoon underscores the bank's commitment to transparency and financial accountability. • Economic Role: As a state-owned entity, the bank remains a cornerstone for national savings and a key contributor to the government's fiscal framework. • Strategic Milestone: The report serves as a formal account of the bank’s performance and its alignment with national financial governance standards. _Note: Financial specifics and year-on-year growth rates were not included in the initial report announcement._

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PLC Bolsters Capital with Rs. 10 Bn Tier 2 Debt Issuance 📈

Financial Services Sector Update: People’s Leasing and Finance PLC (PLC) has successfully concluded a Rs. 10 billion private placement of trust certificates. Capital Strengthening: The funds were raised via an unlisted, unrated, and unsecured subordinated five-year term loan facility, specifically designed to reinforce the company’s Tier 2 capital base. Regulatory Approval: The Central Bank of Sri Lanka (CBSL) Governing Board officially approved the inclusion of this facility under Tier 2 capital on March 18, 2026, ensuring compliance with Capital Adequacy Requirements. Strategic Impact: This capital boost is intended to support future lending growth and maintain stability within the leasing and non-bank financial institution (NBFI) landscape, aligning with national regulatory thresholds. _Note: Based on official company disclosures as of April 3, 2026._

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📈 Chevron Lanka Hits Record Rs. 4 Bn Earnings in 2025

Chevron Lubricants Lanka PLC achieved its highest-ever earnings in its 32-year history for the 2025 financial year, driven by robust volume growth and market leadership. • Financial Performance: Surpassed the Rs. 4 Billion milestone in earnings for the first time, on a total revenue of Rs. 24.39 Billion. • Shareholder Returns: Declared a 9-year high dividend of Rs. 16 per share. The dividend payout ratio reached a 5-year high of 95%. • Growth Drivers: Performance was underpinned by strong double-digit year-on-year volume growth within the oil and gas sector. • Market Position: Maintained its position as the market leader in lubricants since 1992, successfully competing against 35 other market players. • Regional Footprint: Operations supported by a local blending plant, catering to domestic demand and export markets in Bangladesh and the Maldives. • Corporate Recognition: Ranked among the top 15 in the Best Employer Awards 2025 and consistently featured in top tier listings for Return on Equity and Asset Utilisation. _Note: Data based on Q4 2025 interim financial statements._

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NDB Bank Detects Rs. 380 Mn Employee-Linked Fraud 📈

• Overview: National Development Bank PLC (NDB) has disclosed an internal fraud involving specific employees acting in collusion with third parties. Preliminary findings estimate the loss at approximately Rs. 380 million, though the bank warns the final amount could be "substantially greater" as investigations continue. • Status of Operations: The bank explicitly stated there is no impact on customer deposits, account balances, or day-to-day operations. Business remains "as usual" across all branches. • Regulatory & Legal Action: • The matter has been referred to law enforcement authorities and the Central Bank of Sri Lanka (CBSL). • Internal inquiries and criminal investigations are currently underway to determine the exact scale of the incident. • NDB is taking immediate steps to further strengthen internal controls within the banking & financial services sector to prevent future occurrences. • Next Steps: The bank has committed to full transparency and will provide updated disclosures to the Colombo Stock Exchange (CSE) once final reports are available.

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Lanka Milk Foods (CWE) PLC Recovers Rs. 309.3 Mn in Legal Claim 📈

Lanka Milk Foods has successfully secured over Rs. 309.3 million following the settlement of a long-standing legal claim related to a breach of contract. • Financial Impact: The recovered amount will be recorded as other income and is expected to have a material impact on the financial statements for the period ending 31 March 2026. • Cash Flow: The company confirmed that this recovery will result in a significant positive cash inflow, strengthening its liquidity position. • Market Reaction: Despite the positive financial recovery, the share price of Lanka Milk Foods closed down by Rs. 1.00 at Rs. 81.10. • Sector Relevance: This recovery bolsters the financial standing of a key player in the food and beverage sector, contributing to corporate stability within the broader manufacturing landscape. _Note: Financial impact is based on provisional projections for the 2025/2026 fiscal year end._

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Headline: Unilever & McCormick to Create $20 Bn Global Flavour Powerhouse 📈

Unilever and McCormick have agreed to combine Unilever’s Foods business with McCormick, creating a scaled global leader in the consumer goods and food processing sectors. • Transaction Details • Enterprise Value: US$ 44.8 Bn for Unilever Foods (3.6x EV/Sales). • Unilever Receives: US$ 15.7 Bn in cash and 65% total equity in the combined entity. • Ownership: Unilever shareholders (55.1%), McCormick shareholders (35%), and Unilever PLC (9.9%). • Timeline: Completion expected by mid-2027. • Strategic Impact for Unilever • Transforms Unilever into a pureplay Home and Personal Care (HPC) company with €39 Bn in revenue. • Focuses on high-growth sectors: Beauty, Wellbeing, Personal Care, and Home Care. • Plans for €6 Bn in share buy-backs between 2026 and 2029. • Increases exposure to emerging markets like India, which (with the US) will contribute 38% of turnover. • The New Flavour Entity • Will house iconic brands including McCormick, Knorr, Hellmann’s, and Maille. • Pro forma FY2025 revenues of US$ 20 Bn. • Projected annual cost synergies of US$ 600 Mn by the end of year three. • Economic Context This move reflects a global trend of portfolio sharpening to focus on science-led innovation and digital commerce. For markets like Sri Lanka, where Unilever has a massive footprint in Home and Personal Care, this reinforces a shift toward premiumisation and high-growth "pureplay" operations. _Note: Based on official transaction data; subject to regulatory approvals._

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LLD Consolidates Entertainment Portfolio with Full Acquisition of Scope Cinemas 📈

Liberty Lands & Developments (LLD) has acquired the remaining shares of Scope Cinemas, moving to 100% ownership as part of a strategic group restructuring to strengthen its entertainment and hospitality portfolio. • Strategic Consolidation: The move aims to enhance operational alignment across LLD’s diversified interests, which include real estate, food and beverage (Food Studio), and strategic stakes in Alhambra Hotels. • Leadership Transition: Mr. Thushan Rangana Meenanage has stepped down as CEO and Director effective March 31, 2026. Executive Chairman Mr. Naveed Cader has been appointed as Interim CEO to ensure continuity. • Market Impact: This acquisition reinforces LLD’s commitment to the leisure and cinema sector, positioning the brand for future growth and a more integrated business model within Sri Lanka’s evolving service economy. • Sector Focus: The transition reflects a broader trend of corporate restructuring in the service and retail sectors to build resilient, future-ready organizations.

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📈 Sunshine Holdings Secures 75% Stake in Agri-Export Venture for Rs. 2.7 Bn

• The Transaction: Sunshine Holdings PLC has officially finalized the acquisition of a majority stake in Joint Agri Products Ceylon Ltd (JAPC). The deal involved purchasing 577,320 shares for a total consideration of Rs. 2.7 Bn. • Sector Focus: The acquisition significantly boosts Sunshine's presence in the export agriculture segment. JAPC specializes in the processing and export of spices, coconut products, and tea. • Market Reach: JAPC, along with its subsidiary Sancan Exports Lanka Ltd, maintains a strong export footprint in high-value markets, specifically the EU and the US. • Strategic Impact: This move is designed to diversify Sunshine Holdings' consumer sector portfolio, shifting focus toward foreign exchange-earning, export-oriented markets to drive long-term growth. • Market Reaction: Following the announcement, Sunshine Holdings PLC shares closed at Rs. 29, down Rs. 1 for the day.

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Court Finds Former Co-operative Insurance Chairman Guilty of Contempt ⚖️

The Commercial High Court of Colombo has found the former Chairman of Co-operative Insurance Company PLC, Susil Shantha Weerasekera, guilty of Contempt of Court. The ruling follows an inquiry into the submission of a falsified affidavit in a case alleging corporate mismanagement. • Legal Breach: Weerasekera initiated legal action in 2022 claiming to be a shareholder of the company. However, evidence including annual reports—previously signed by Weerasekera himself—confirmed he did not hold shares, a mandatory requirement under the Companies Act No. 7 of 2007. • Judicial Findings: High Court Judge Chamath Madanayake ruled that the former Chairman committed an offense under Section 183B of the Civil Procedure Code by filing an affidavit containing falsehoods to obtain ex-parte interim relief. • Corporate Governance: While found guilty of providing false information, the court did not find the accused guilty of violating specific interim orders. The original case filed by the former Chairman was dismissed in May 2023 due to the jurisdictional failure. • Next Steps: Sentencing is scheduled for April 2, 2026. This case highlights critical oversight regarding director accountability and legal compliance within Sri Lanka’s insurance and financial services sectors.

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📈 Ambeon Makes Voluntary Rs. 3.34 Bn Bid for Harischandra Mills

Ambeon Essentials Ltd, a subsidiary of Ambeon Capital PLC, has launched a voluntary offer to acquire a controlling stake in the iconic food & consumer goods firm, Harischandra Mills PLC. • Offer Details: Ambeon is offering Rs. 3,400 per share to acquire 981,118 shares (51.11% stake). This values the total equity of the company at approximately US$ 21.6 Mn (Rs. 6.5 Bn). • Valuation & Market Gap: The offer price represents a 3.5x multiple to the net asset value of Rs. 964.6 per share (as of Dec 2025). Notably, the offer is significantly below the last traded price of Rs. 5,068.75 and the post-deal peak of Rs. 6,982. • Strategic Context: Ambeon’s bid is Rs. 100 higher per share than the price paid by Hayleys PLC (Rs. 3,300) to acquire its 40.58% stake in October 2025. If Hayleys chooses to exit, they stand to realize a profit of ~Rs. 77.9 Mn. • Regulatory Status: The offer follows a January Share Sale and Purchase Agreement (SPA) with a consortium of family shareholders. Upon acceptance of the 51.11% stake, it will convert into a Mandatory Offer for all remaining shares under the Takeovers and Mergers Code. _Note: Based on official disclosure data as of March 30, 2026._

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Awards & Recognitions

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Ven. Dr. Kirinde Assaji Thero Honoured with Lifetime Achievement Award in UK 🏆

Canterbury Christ Church University has conferred its prestigious Lifetime Achievement Honour Award upon Most Ven. Dr. Kirinde Assaji Thero, Chief Incumbent of the Gangaramaya Temple, recognizing his global spiritual leadership and community service. • Core Recognition The award celebrates decades of work in interfaith harmony, education, and community development. Key highlights include his efforts in empowering rural communities, women, and children, alongside advancing sustainable development initiatives. • Economic & Cultural Impact The event, attended by Sri Lanka’s High Commissioner to the UK and the Chairman of the Tourism and Cultural Task Force, signaled a strengthening of bilateral ties. Discussions focused on: Higher Education: Opportunities for academic exchange and institutional partnerships. Tourism & Heritage: Promoting cultural collaboration and "people-to-people" connections between Sri Lanka and the UK. Agriculture: Recognition of the Thero’s ongoing work in agricultural sustainability and environmental awareness. • Strategic Significance Beyond the spiritual accolade, the visit aimed at fostering deeper cooperation in sustainable development and vocational empowerment, bridging Sri Lankan traditions with modern global academic frameworks. • Official Representation The ceremony was officiated by Vice-Chancellor Prof. Rama Thirunamachandran, marking a milestone for Sri Lankan cultural diplomacy on the international stage.

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People’s Bank Secures Top Honors at LankaPay Technnovation Awards 2026 📈

• The Achievement: People’s Bank won the Gold Award for the "Most Popular Digital Payment Solution" (Large Banks Category) for its People’s Pay app. This marks the 7th consecutive year the bank has been recognized for its leadership in financial technology. • Digital Footprint: • Over 15.3 million total customers served nationwide. • More than 4.4 million digital banking registrations to date. • The platform supports the National Digital Strategy 2030 by bridging the gap between urban and rural sectors. • Core Features: The People’s Pay app was lauded for its user-centric design, facilitating seamless QR-based payments, fund transfers, and multi-bank account linking, which are critical for driving financial inclusion and digital economy growth. • Industry Context: Held under the theme "Inclusive FinTech," the 2026 awards were attended by the Central Bank Governor and key state officials, highlighting the government's push for a digitally integrated economy. People’s Bank has been a key driver of this transformation since starting its digital journey in 2015.

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📈 Solo Sri Lankan Wins Tripadvisor Travellers’ Choice Award 2025

Sri Lankan travel experience provider, Solo Sri Lankan, has been ranked among the top 10% of global listings in the 2025 Tripadvisor Travellers’ Choice Awards. This recognition, based on authentic traveller reviews, highlights the company's impact on the local tourism sector. • Global Recognition: The award places the company in the top decile of travel listings worldwide, reflecting high levels of consistency and service quality. • Sector Impact: This milestone underscores the shift toward an experience-driven tourism industry in Sri Lanka, prioritizing personalized service over traditional transactional travel. • Economic Value: As a trusted name in the hospitality and travel sector, such international accolades enhance Sri Lanka's brand equity as a premier destination for global travellers. • Service Model: Managed by Thushanth Rajendran, the company focuses on curated experiences for both international and local markets, emphasizing the importance of human-centric service in economic recovery. This achievement is expected to further bolster confidence in Sri Lanka’s tourism infrastructure and service standards as the industry continues to evolve.

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ComBank Dominates LankaPay Technnovation Awards 2026 with 6 Major Wins 📈

Commercial Bank of Ceylon (ComBank) has solidified its position at the forefront of the banking and financial services sector, securing six awards at the LankaPay Technnovation Awards 2026. The bank notably won the overall Gold for ‘Excellence in Digital Payments (Banks)’ for the second consecutive year. • Key Award Highlights: • Overall Gold: Excellence in Digital Payments (Banks) • Gold: Financial Institution of the Year for Best Digital Payment Strategy • Gold: Most Innovative Financial Institution of the Year (4th consecutive win) • Gold: Best Institution for Excellence in Customer Convenience (Category A) • Silver: Best LankaPay Card Enabler of the Year • Merit: Best Institution for Financial Inclusivity (Category A) • Strategic Digital Initiatives: Recognition was driven by ComBank’s performance in 2025, specifically growth in transaction volumes across CEFTS and SLIPS. Key innovations include the launch of Google Pay in Sri Lanka, an AI-driven SME credit underwriting model, and the ‘ComBank Shakthi’ agency banking model to improve financial inclusivity in underserved areas. • Economic Impact: Through the ‘TradeLink’ platform for trade finance and the rollout of smart POS solutions for the SME sector, the bank continues to modernize the national payment ecosystem. These advancements align with Central Bank objectives to enhance digital infrastructure and security in Sri Lanka’s financial landscape. 🏦

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🏆 Ceylinco Life Chairman Honoured by CMA Sri Lanka

Ceylinco Life Executive Chairman R. Renganathan has received the ‘Distinguished Recognition in the Profession of Management Accounting’ award from CMA Sri Lanka for his excellence in financial stewardship and governance. • Core Achievement: Recognized for his role in shaping the company’s financial framework since its 1988 inception, focusing on transparency, accountability, and integrated reporting. • Sector Leadership: Under his leadership, Ceylinco Life has maintained its position as the market leader in the insurance sector for 22 consecutive years. • Financial Scale: The company’s Life Fund has grown to over Rs. 200 billion, providing coverage to more than one million breadwinners nationwide. • Strategic Focus: The award highlights a commitment to Environmental, Social, and Governance (ESG) principles and sustainable value creation within the Sri Lankan corporate landscape. • Professional Impact: As a Chartered Accountant, Renganathan is credited with elevating industry standards in ethical conduct and financial resilience.

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📈 NDB Named Sri Lanka’s Best Trade Finance Bank at Euromoney 2026

National Development Bank PLC (NDB) has secured the #1 overall domestic ranking as the Best Trade Finance Bank in Sri Lanka. The recognition, awarded by Euromoney, is based directly on feedback and votes from corporate clients and exporters. • Overall Performance: Ranked #1 among local banks for trade finance excellence. • Client Validation: Awarded based on direct endorsements from organizations relying on NDB’s daily trade solutions. • Key Capabilities: Highlighted for strength in transactional banking, treasury services, and foreign exchange (FX) risk management. • Digital Integration: Leveraging platforms like NEOS Corporate, NEOS BIZ, and TradeLinc to digitize supply chain financing and enhance operational speed. • Strategic Impact: Focus remains on supporting exporters and growth-driven enterprises to compete in international markets through a global network of correspondent partners. The accolade reaffirms NDB’s role in strengthening the national trade and export ecosystem through resilient and globally connected financial solutions. _Source: Provisional data via Euromoney Awards 2026_

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Oxford College of Business Leads Higher Education in LMD 2025 Rankings 📈

• Overall Performance: Oxford College of Business (OCB) secured the 32nd spot overall out of 396 companies in LMD’s "Most Awarded" 2025 study. The institution climbed 23 positions from its previous rank of 55 in 2024. • Sector Leadership: OCB emerged as the No. 1 institution within the higher education sector, highlighting its dominance in a competitive and largely unregulated private internal market. • Award Growth: The college earned a total of 17 awards for the 2025 ranking period, compared to 13 awards in the 2024 cycle, marking significant growth in institutional recognition. • Strategic Impact: As a "Mover and Shaker" in the Top 50, OCB’s ranking reflects excellence in governance, sustainability, and corporate reporting. These accolades serve as a form of voluntary self-regulation, boosting stakeholder confidence and benchmarking the ICT/BPM and professional education standards in Sri Lanka. • Institutional Context: The ranking evaluates consistency across national and international platforms, placing the college alongside major diversified corporates and reinforcing its role in national professional development.

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### Lihini Fernando Selected for 2026 Eisenhower Fellowship 📈

Attorney-at-Law and Velox Partners Co-Founder Lihini Fernando has been named among 24 global leaders for the prestigious 2026 Eisenhower Fellowship (EF). Representing Sri Lanka, she will participate in a six-week Global Program in the US from April 5 to May 14. • The Fellowship: A transformative program involving leaders from 24 countries across government, business, and civil society, aimed at fostering a global network of "change agents." • Professional Profile: Fernando is a Co-Founding Partner at Velox Partners (a tech-enabled legal process outsourcing firm) and a Council Member. She is a prominent advocate for the rule of law and women’s representation in politics. • Key Objectives: During the fellowship, she aims to exchange ideas with US experts to: Establish community-based legal aid centres for underprivileged Sri Lankans. Advance initiatives for women’s empowerment and political participation. • Economic Context: Her work at Velox Partners contributes to the growing ICT/BPM and professional services sector, specifically in legal outsourcing across Asia. _Note: Summary based on official 2026 fellowship announcement._

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📈 HNB Assurance Achieves Record 256 MDRT Qualifiers in 2025

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

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KOKO Secures Overall Gold at LankaPay Technnovation Awards 2026 📈

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

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

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

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

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

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Sustainability, ESG & Corporate Responsibility

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📈 Colombo Climate Workshop: Strengthening Regional Transparency & Agrifood Systems

A high-level regional workshop concluded in Colombo, bringing together representatives from Asia-Pacific and Central Asia to align on climate transparency and agrifood systems ahead of COP31. • Core Objective: Strengthening the Enhanced Transparency Framework (ETF) and preparing Biennial Transparency Reports (BTRs) to support evidence-based decision-making and climate finance access. • Sector Focus: Agrifood systems were identified as the central pillar for Sri Lanka’s climate action, balancing food security with low-emission targets. The agriculture sector is being prioritized for its role in livelihoods and rural development. • Institutional Support: The event was hosted by the Ministry of Environment and the FAO, with backing from the Global Environment Facility (GEF) and Germany’s BMZ. Sri Lanka is currently enhancing its national transparency via the CBIT (Capacity-Building Initiative for Transparency) project. • Key Innovations: A new FAO initiative was introduced to monitor methane in rice systems using remote sensing, aimed at improving greenhouse gas reporting accuracy. • Strategic Outlook: Participants emphasized that transparency is the foundation for international trust and "investment planning." Roadmaps are being developed to link climate reporting directly to national investment priorities and inclusive governance.

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First Capital Treasuries Joins Global Carbon Accounting Partnership 📈

• First Capital Treasuries PLC has officially joined the Partnership for Carbon Accounting Financials (PCAF), a global collaboration of over 700 financial institutions dedicated to harmonizing greenhouse gas (GHG) emission disclosures. • The move enables the company to measure and disclose the carbon footprint of its financed activities using globally recognized standards, reinforcing its commitment to sustainable finance and transparency. • Key objectives of the partnership include: • Enhancing measurement of GHG emissions within investment portfolios. • Strengthening climate-related risk management. • Aligning financing strategies with Sri Lanka’s transition toward a low-carbon and climate-resilient economy. • CEO Sachith Perera noted that this initiative, as part of First Capital Holdings PLC, focuses on responsible investing and long-term value creation within the local financial services sector.

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📈 WindForce PLC Proposes Rs. 4 Bn Green Bond Issue

Renewable energy leader WindForce PLC has announced plans to raise Rs. 4 billion through a strategic Green Bond issuance to strengthen its financial position and support sustainable growth. • Issue Details: The Board proposes issuing 40 million listed, rated, senior, unsecured, redeemable Green Bonds at a par value of Rs. 100 each. • Regulatory Status: The issuance is subject to necessary regulatory approvals; specific details regarding tenure and interest rates are to be disclosed at a later date. • Financial Position: As of December 2025, the company’s balance sheet stood at Rs. 43.3 billion, featuring retained earnings of Rs. 6.1 billion. • Debt Profile: The move follows a reported debt structure of Rs. 8.5 billion in long-term borrowings and Rs. 2.52 billion in short-term obligations. • Market Reaction: Shares of WindForce closed at Rs. 44.80 (down Rs. 0.20) following the announcement. This initiative highlights the increasing use of green financing instruments in Sri Lanka’s renewable energy sector to manage capital structures and support long-term decarbonization goals.

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📉 Urgent Environmental Oversight at Norochcholai Power Plant

The Sectoral Oversight Committee on Environment has issued a directive for an immediate, sustainable management plan for ash disposal at the Norochcholai Lakvijaya Power Plant following a rise in waste output. • Waste Management Issues: Ash volumes have increased significantly, attributed to the lower quality of imported coal. The Committee has tasked the Puttalam District Secretary with leading a formal disposal strategy to mitigate environmental risks. • Economic Reuse & Welfare: A proposal was made to repurpose the ash for industrial production. Revenue generated from these activities is slated for welfare programs targeting communities located near the facility. • Regulatory Compliance: The Central Environmental Authority (CEA) must submit a comprehensive report on potential air and water pollution. The North Western Provincial Environmental Authority is required to respond to a compliance questionnaire within two weeks. • Operational Status: Despite the surge in ash volume, officials stated that existing filtration systems remain adequate for capturing emissions. The move signals a tightening of environmental licensing and compliance for Sri Lanka's primary coal-based energy infrastructure.

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WiLAT SL & EFL Global Partner to Boost IGNITE Mentoring Program 📈

The Chartered Institute of Logistics and Transport Sri Lanka (CILT SL) has signed an MoU with EFL Global to formalize industry exposure for the IGNITE Mentoring Program, a flagship initiative of Women in Logistics and Transport (WiLAT) Sri Lanka. • Strategic Partnership: The collaboration integrates structured mentorship with practical industry placement, aiming to develop future-ready leaders for the logistics and transport sector. • Internship Opportunities: Top-performing mentees will enter EFL Global’s "Pathway to Logistics Program," a six-month internship conducted twice annually. This provides hands-on experience in global supply chain operations and core functional roles. • Impact & Scale: Over its 11-year history, IGNITE has mentored 250+ young professionals and undergraduates. This MoU marks the program’s first formal expansion into structured corporate placements, strengthening the national talent pipeline. • Career Pathways: Selected participants will engage in live projects and cross-functional teams, with potential transitions into permanent roles upon successful completion. This initiative underscores a commitment to enhancing professional capability and gender-inclusive growth within Sri Lanka's evolving logistics landscape. _Source: CILT SL / EFL Global (Provisional Data)_

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Sri Lanka’s Gender Equity: Benchmarking Workplace Rights 📈

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

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Sri Lanka Faces "Grey Tsunami" Retirement Crisis 📉

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

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MAS Holdings Expands Sustainability Roadmap with New bluesign® Partnerships 📈

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

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

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

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

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

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

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

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

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

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Real Estate

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JKP’s Vauxhall DSTRCT Hits Sales Milestone: 200+ Units in Two Weeks 📈

• Real Estate Sector Performance: John Keells Properties (JKP) achieved over 200 apartment sales within 14 days of launching Vauxhall DSTRCT, setting a new demand benchmark for Colombo’s metropolitan residential market. • Project Scope: The 1.5-acre development features a 60-storey tower with 749 apartments, ranging from one to four-bedroom units. It is positioned as a high-density, competitively priced project in the heart of Colombo. • Market Sentiment: The rapid absorption reflects a resurgence in investor confidence and a shift toward centrally located, tech-enabled urban living. This momentum highlights the stability of the construction and property segment as a driver for domestic investment. • Strategic Impact: By integrating smart technology and efficient design, JKP continues to dominate the metropolitan residential landscape, building on the success of prior iconic developments like TRI-ZEN and Cinnamon Life. • Current Status: Based on provisional launch data, the project remains one of the most in-demand residential offerings in the capital, reinforcing the long-term value of Sri Lanka's urban infrastructure.

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📈 Condominium Sector: Regulatory & Management Reforms

A high-level seminar organized by The Management Club (TMC) highlighted critical gaps in Sri Lanka’s real estate and property development framework, focusing on legal protections for buyers and developers. • Legal & Regulatory Gaps The forum emphasized the risks of non-registration of multi-storey buildings, which leaves purchasers without title deeds. Key proposals include making quarterly construction progress reports to the Condominium Management Authority (CMA) mandatory and implementing escrow accounts for purchaser advances to prevent fund misuse. • Financial & Market Stability To safeguard the banking and finance sector during economic downturns, experts suggested: Adopting US-style project monitoring for seized assets to allow for re-development rather than failed auctions. Introducing government-funded insurance schemes for purchasers to mitigate developer default risks. Mandatory disclosure statements in national newspapers for major projects to ensure transparency in the construction industry. • Sustainability & Safety Architecture & Engineering: Calls for "sustainable design" to reduce electricity and water consumption. Safety: The CMC Fire Service stressed the urgent need for resident education on fire risks in high-rise living. Professional Standards: Proposals submitted to the Central Bank's FIU aim to regulate property brokering and prevent unethical transactions by non-citizens. • Stakeholder Outlook Industry leaders noted that without strict by-laws and CMA oversight, condominium living will become increasingly "stressful," potentially hindering long-term growth in urban housing and investment.

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

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

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

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

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

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

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Sri Lanka’s Office Market Shifts Toward Managed Infrastructure 📈

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

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🏛️ Court Halts Asset Disposal by Blue Ocean Group Entities

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

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

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

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

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

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

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

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

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

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

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

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Market News

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Middle East Tensions Drive Up Domestic Yields & Weaken Rupee 📈

Sri Lanka’s secondary bond market closed higher last week as geopolitical volatility and rising oil prices (peaking at US$ 115) fueled inflation concerns. Market sentiment remained cautious following mixed signals regarding the Iran-U.S. conflict. • Overall Bond Market: Yields across the curve shifted upward. Short-term maturities like the 2027s traded between 8.85%–8.90%, while long-term 2035 tenors reached 11.00%. • Treasury Bill Auction: Weighted averages rose for the second week. The 91-day bill increased by 16 bps to 7.80%, while the 364-day bill rose to 8.41%. The auction was significantly undersubscribed, raising only 36.11% (Rs. 32.50 Bn) of its Rs. 90 Bn target. • Foreign Outflows: Rupee-denominated Government securities saw a net outflow of Rs. 4.98 Bn, marking the fifth consecutive week of foreign exits. Total foreign holdings dropped to Rs. 143.62 Bn. • Liquidity & Forex: Inter-bank liquidity surplus fell to Rs. 247.36 Bn from Rs. 288.31 Bn. The Sri Lankan Rupee (LKR) depreciated against the USD, closing the week at Rs. 315.35/40 compared to the previous week's Rs. 314.70/315.00. _Note: Data based on weekly market performance ending April 2, 2026._

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📈 CSE Rebounds on Final Session but Weekly Performance Dips 1.2%

The Colombo Stock Exchange (CSE) ended the week on a positive daily note despite a broad weekly decline, as the market remained closed on Friday for the Good Friday holiday. • Weekly Performance: The All Share Price Index (ASPI) declined by 1.2% (-258.31 points) for the week, while the S&P SL20 fell by 2.0% (-124.30 points). • Daily Market Movement: On the final trading day, the ASPI gained 0.24% to close at 21,117.42. However, the S&P SL20 slipped 0.48% to 5,875.69, largely due to ex-dividend adjustments in the banking sector. • Trading Activity: Turnover reached Rs. 1.77 Bn with 64.1 Mn shares traded. Capital goods led activity (26% of turnover), followed by the banking and materials sectors. • Key Contributors: Top gainers included MELS, SAMP, and RIL. Heavyweights like JKH and TKYO.N dominated turnover, with the latter leading crossings at Rs. 88.9 Mn. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 68.2 Mn. Market breadth was positive with 139 gainers against 84 decliners, while the Market P/E stood at 10.68.

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Global Gold Prices Slump as U.S. Escalates Iran Conflict 📉

The safe-haven appeal of gold weakened significantly on Thursday after U.S. President Donald Trump signaled a continuation of aggressive military action in Iran, disrupting a four-day rally. • Overall Market Impact: Spot gold fell 1.3% to US$ 4,694.48 per ounce, while U.S. gold futures dropped 1.9% to US$ 4,723.70. This follows gold’s worst monthly performance since 2008, having dropped 11% in March. • Economic Factors: The decline was driven by a stronger U.S. dollar and rising 10-year Treasury yields. Brent oil surged over 4%, intensifying inflation concerns. However, high interest rates continue to curb gold's attractiveness, as markets price in no Fed rate cuts for the majority of 2026. • Precious Metals Sector: Broad-based selling impacted the entire sector: • Silver: Down 2.9% to US$ 72.95 • Platinum: Down 1.8% to US$ 1,928.26 • Palladium: Down 1.4% to US$ 1,451.85 • National Context: For Sri Lanka, extreme volatility in gold prices impacts the jewelry industry and the valuation of national reserves. Sustained high oil prices driven by the conflict also pose a risk to the country's energy costs and trade balance.

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Global Markets Recoil as U.S.-Iran Tensions Escalate 📈

Global financial markets faced a sharp downturn following U.S. President Donald Trump’s vow to hit Iran "extremely hard," triggering fears of a prolonged conflict. The lack of clarity on the reopening of the Strait of Hormuz has intensified supply concerns across Asia. • Energy & Commodities: Brent crude surged 5% to US$ 106.16 per barrel. The continued closure of the Strait of Hormuz remains a critical risk for fuel shipping routes, directly impacting energy costs for import-dependent nations like Sri Lanka. • Global Equities: Risk assets saw a heavy sell-off. Asian markets were hit hardest; Japan’s Nikkei dropped 1.8%, while South Korea’s Kospi slid 3.6%. U.S. and European futures fell between 1% and 1.5%. • Currency & Macro Risks: The U.S. Dollar Index rose 0.3% to 99.858 as investors sought safety. Analysts warn of renewed stagflation risks—a combination of high inflation driven by energy prices and weakened economic growth. • Regional Impact: For Sri Lanka, the surge in oil prices and a strengthening Dollar may exert pressure on forex reserves and domestic fuel pricing, while volatility in Asian bourses could influence local investor sentiment in the banking and manufacturing sectors.

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📈 T-Bill Yields Rise as Auction Sees Weak Demand

Treasury Bill yields continued an upward trajectory for the second consecutive week, despite inflation remaining well below the Central Bank's target. • Auction Results (Weighted Average Yields): 91-day: 7.80% (+16 bps) 182-day: 8.09% (+14 bps) 364-day: 8.41% (+09 bps) The auction was significantly undersubscribed, raising only Rs. 32.50 Bn (36.11%) of the Rs. 80 Bn offered. • Inflation (CCPI): The March CCPI print recorded +2.20% YoY, up from +1.60% in February. While accelerating, it remains below the Central Bank’s medium-term target of 5.00% and missed the Bloomberg forecast of 3.00%. • Secondary Bond & Forex Markets: Bonds: Yields held steady amid Middle Eastern conflict concerns and global oil price volatility. The 2027 maturity traded between 8.85%–8.90%. Forex: The Sri Lankan Rupee remained stable, with spot next USD/LKR closing at Rs. 315.50/315.70. • Market Liquidity: The money market maintained a net liquidity surplus of Rs. 277.95 Bn, with the Central Bank draining Rs. 112.50 Bn via overnight repo auctions at 7.60%.

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📉 War Impact: UAE Stock Markets Lose US$ 120 Bn

The escalation of the US-Israel conflict with Iran has triggered a significant downturn in UAE financial markets, marking them among the hardest-hit globally. • Market Valuation: Combined losses for Dubai and Abu Dhabi reached ~US$ 120 Bn since Feb 28. The Dubai Financial Market (DFM) plunged 16% (loss of US$ 45 Bn), while the Abu Dhabi Securities Exchange (ADX) dropped 9% (loss of US$ 75 Bn). • Regional & Global Context: While Qatar (-4%) and Bahrain (-7%) saw declines, Saudi Arabia and Oman recorded gains. Comparatively, the US S&P 500 dropped 7% during the same period. • Sector Vulnerability: The travel & tourism sector—a critical pillar for economic diversification—is under heavy pressure. Dubai’s international airport has faced tens of thousands of flight cancellations due to the conflict. The sector previously contributed US$ 70 Bn (13% of GDP) to the UAE economy. • Outlook: Despite the volatility, experts view this as a "temporary shock" to investor sentiment rather than structural damage. The UAE maintains its goal to position Dubai as a top four global financial hub by 2033, backed by its 2024 milestone of exceeding US$ 1 Tn in total market capitalization. _Source: News reports as of April 1, 2026._

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📉 CSE Ends March in the Red as Volatility Continues

The Colombo stock market closed marginally lower on Tuesday, recovering from a sharp intra-day slump where the ASPI briefly dipped below the 21,000-point threshold. • Market Performance: The ASPI fell 0.12% (26.06 points) to close at 21,066.18, while the S&P SL20 ended 0.08% lower at 5,904.10. • Monthly Decline: During March 2026, the market saw significant erosion, with the ASPI down 11.24% and the S&P SL20 down 11.03%. • Valuation Impact: The market has lost approximately Rs. 903 Bn in value since the onset of Middle East regional tensions on 28 February. • Trading Activity: Market turnover stood at nearly Rs. 3.6 Bn with 165 million shares traded. Crossings represented a significant 33.7% of the total turnover. • Sector Contributions: The Capital Goods sector led turnover at 52%, followed by the Banking and Materials sectors at a combined 28%. • Investor Sentiment: Foreign investors remained net sellers with an outflow of Rs. 125 million. Top negative contributors included SAMP, NDB, HAYL, ACL, and GLAS. _Source: Based on provisional market data for March 31, 2026._

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📈 Oil Prices Dip 1% Amid Signals of De-escalation in U.S.-Iran Conflict

Oil prices retreated in Asian trading on Tuesday as markets reacted to reports of a potential shift in U.S. diplomatic strategy regarding the ongoing conflict with Iran. • Market Performance: Brent crude futures for May fell by $1.22 (1.08%) to US$ 111.56 per barrel, while U.S. WTI dropped 0.95% to US$ 101.90. This follows a volatile March where Brent surged 59% due to the closure of the Strait of Hormuz. • Geopolitical Context: Prices eased following reports that U.S. President Donald Trump may be open to ending military campaigns against Iran even if the Strait of Hormuz remains partially closed. However, analysts warn that prices will remain elevated until the waterway—which carries 20% of global oil—is fully reinstated. • Supply Chain Impacts: Security Risks: A Kuwaiti tanker was reportedly struck at a Dubai port, highlighting ongoing threats to seaborne energy. Logistics: Saudi crude exports are being heavily rerouted through the Red Sea, with volumes via the Yanbu port jumping to 4.658 million bpd from a 770,000 bpd average in early 2026. • National Significance: As a net importer of refined petroleum and crude oil, Sri Lanka remains highly sensitive to these global price fluctuations. Sustained high prices impact the transportation and manufacturing sectors, adding pressure to national forex reserves and domestic energy costs. _Note: Market sentiment remains volatile based on provisional diplomatic reports._

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Global Oil Surges to $115 Amid Escalating Middle East Conflict 📈

• Energy Market Impact: Global oil prices jumped as the US-Israel-Iran conflict entered its fifth week. Brent crude rose over 3% to above US$ 115 per barrel, while US-traded oil climbed to US$ 101.62 (+2%). Brent is currently on track for its largest monthly gain on record. • Stock Market Slump: Major Asian indices saw sharp declines following weekend escalations. Japan’s Nikkei 225 dropped 2.8%, and South Korea’s KOSPI fell nearly 3%. • Geopolitical Risks: Tensions spiked after Houthi rebels struck Israel and Iran threatened retaliatory strikes. US President Trump indicated potential plans to seize Iran’s Kharg Island fuel hub, comparing the strategy to recent US actions in Venezuela. • Sri Lankan Context: As a net oil importer, the surge in Brent crude prices poses significant risks to Sri Lanka's energy costs and transportation sector. Prolonged high prices may exert pressure on foreign exchange reserves and domestic inflation. • Military Escalation: An additional 3,500 US troops arrived in the Middle East as Iran’s Parliament warned of readiness for direct confrontation.

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📈 CSE Slumps as Global Oil Surges Amid Mideast Tensions

The Colombo Bourse started the week in the red, driven by dampened investor sentiment as global oil prices climbed to $115. Heightened geopolitical uncertainty led to broad-based selling across key blue-chip counters. • Market Performance: - ASPI: 21,092.24 (Down 1.33% | -283.49 points) - S&P SL20: 5,908.96 (Down 1.52% | -91.03 points) - Turnover: Approx. Rs. 2.2 Bn on 100 Mn shares traded. • Sector & Stock Highlights: - Capital Goods: Led turnover (28% share) but saw a sector index drop of 2.05%. John Keells Holdings (JKH) was a major detractor, closing at Rs. 18. - Banking: Contributed significantly to turnover; sector index fell 1.17%. Sampath Bank dropped 75 cents to Rs. 155.50. - Energy: Lanka IOC bucked the trend, gaining 75 cents to close at Rs. 140 amid rising oil prices. - Food, Beverage & Tobacco: Collectively contributed to 36% of turnover alongside banking; Lanka Milk Foods declined by Rs. 3.20. • Investor Activity: - Net Foreign Outflow: Rs. 32.5 Mn. - Participation: Subdued interest from HNW and retail investors. - Major Detractors: JKH, NDB, HAYL, MELS, and COMB exerted the most downward pressure.

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📈 Secondary Bond Yields Rise Amid Global Oil Spikes & Inflation Fears

The Sri Lankan bond market started the week on a bearish note as selling pressure pushed yields higher. Market sentiment is currently weighed down by external pressures, specifically rising global oil prices (Brent crude exceeding $ 115/barrel) and heightened Middle East tensions. • Bond Market Performance: Yields edged up across various maturities due to "imported inflation" concerns. 01.05.28 maturity: Traded at 9.65% 15.09.29 maturity: Traded at 9.95% 01.03.30 maturity: Range of 9.99% - 10.00% 2033/2034 maturities: Hovering between 11.00% - 11.10% • Treasury Bill Auction: A total of Rs. 90 Bn is on offer today (Rs. 40 Bn for 91-day, Rs. 30 Bn for 182-day, and Rs. 20 Bn for 364-day bills). This follows last week's auction where weighted average yields rose across all tenors for the first time in 10 weeks. • Currency & Liquidity: Forex: The LKR depreciated slightly against the US Dollar, closing at Rs. 315.10/316.00 compared to the previous Rs. 314.70/315.00. Liquidity: A net surplus of Rs. 268.86 Bn was recorded. The Central Bank drained Rs. 120 Bn via overnight Repo at 7.60%. • Market Activity: Secondary market transacted volume for bonds/bills stood at Rs. 13.64 Bn, while USD/LKR traded volume reached $ 87.10 Mn. Investors remain cautious, awaiting clearer global economic direction.

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📉 Colombo Stock Market Ends Lower as Indices Retreat

The Colombo Stock Exchange (CSE) experienced a downward trend today, with both benchmark indices closing in the red amid active trading. • Market Performance: The All Share Price Index (ASPI) dropped by 283.49 points (-1.33%) to close at 21,092.24. • Blue-Chip Movement: The S&P SL20 Index, which tracks the most liquid stocks, fell by 91.03 points (-1.52%) to settle at 5,908.96. • Liquidity: Daily market turnover was recorded at Rs. 2.17 billion, reflecting steady participation despite the price declines. Based on provisional end-of-day data for March 30, 2026. ---

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Regulatory & Policy News

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## 📉 Institutional Oversight Threatens Real Estate Investment

A critical administrative omission in a December 2024 Gazette (No. 2414/14) has jeopardized the tax-exempt status of the Rupee Account for Non-resident Sri Lankan Investment (RANSI), threatening long-term diaspora capital. The Policy Crisis • Broken Promise: Investors who entered the market in 2001 under a sovereign guarantee of tax-free repatriation now face a "procedural trap." • Currency Erosion: While investors face a 300% currency depreciation (from 90 LKR/USD in 2001 to ~310 LKR/USD in 2026), the Inland Revenue Department (IRD) is now attempting to levy Capital Gains Tax on nominal rupee gains. • Administrative Lapse: The 2024 "Negative List" for Tax Clearance Certificates (TCC) includes "hot money" (stocks/bonds) but omitted RANSI real estate exits, creating a Kafkaesque nightmare for "sticky" capital. Legal & Economic Context • Statutory Protection: The Finance Act, No. 11 of 2002 and Inland Revenue Act, No. 24 of 2017 (Section 203) explicitly mandate the "grandfathering" of these perpetual exemptions. • Sector Impact: This oversight affects the real estate and construction sectors, which relied on diaspora wealth as a stable foreign exchange source during periods of volatility. • Risk Factor: The current "selective enforcement" is viewed as a violation of the Doctrine of Legitimate Expectation and Article 12(1) of the Constitution. The Remedy • Experts urge the government to issue a supplementary Gazette under Section 86(7) to restore the RANSI exemption, preventing potential Fundamental Rights lawsuits and a total loss of investor trust in Sri Lanka’s emerging market status.

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📈 IRD Defers New VAT Invoice Format to 1 July

The Inland Revenue Department (IRD) has announced a further extension for the implementation of the standardized tax invoice format for Value Added Tax (VAT) registered persons, moving the deadline from 1 April 2026 to 1 July 2026. • Context: This marks the second postponement of the mandate, which was originally scheduled for 1 January 2026. The extension follows requests from the private sector for additional time to align internal systems with the new specifications. • Legal Basis: The revised timeline applies to the format outlined in notice No. PN/VAT/2025-12/1. A formal amendment to the relevant Gazette Notification is expected shortly. • Objective: The initiative aims to standardize documentation and enhance reporting accuracy within the VAT framework, a critical component for domestic revenue mobilization. • Compliance: Until the new July deadline, existing invoice formats remain valid. Registered businesses are encouraged to utilize this three-month window to finalize their technical and administrative transitions.

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Justice Ministry Launches MIS to Digitise Appointments & Boost Transparency 📈

The Ministry of Justice and National Integration has officially deployed a new Management Information System (MIS) and a revamped website to modernise Sri Lanka’s justice sector. This digital transformation, supported by the EU-funded JURE Project (implemented by UNDP and UNICEF), aims to enhance institutional accountability and public service delivery. • Digital Reform Highlights: The MIS streamlines the professional appointment of key roles, including Justices of the Peace, Commissioners of Oaths, Sworn Translators, and Inquirers into Sudden Deaths. It replaces manual processes with structured selection criteria to reduce administrative delays. • Citizen Access & Literacy: A new Citizen Services Information Portal provides user-friendly access to legal aid, mediation, arbitration, and victim protection. The launch also features the "Know Your Neethi" video series to improve national legal literacy and empower citizens regarding their rights. • Economic & Governance Impact: By improving record-keeping and data-driven decision-making, the system aims to strengthen governance—a key factor for long-term economic stability and investor confidence in the legal and regulatory framework. _Note: Project implemented under the broader digital transformation initiative for the justice sector._

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CAA Raids Illegal Urea Fertiliser Stock in Matara 📉

The Consumer Affairs Authority (CAA) has intensified market surveillance, uncovering a significant stock of tampered urea fertiliser intended for distribution. • Seizure Details: Officials from the CAA Matara District Office seized 179 bags (50kg each) of urea fertiliser following a public complaint. • Violations: The raid revealed stocks with falsified pricing information, manipulated labels, and altered product details designed to mislead buyers. • Legal Action: The seized agricultural inputs and suspects are being produced before the Matara Magistrate’s Court as part of a broader crackdown on price gouging in the farming sector. • Economic Context: Such tampered stocks threaten agricultural productivity and food security by inflating costs for farmers and disrupting the supply chain of essential fertilisers.

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Cabinet Approves Free Visa Rollout for 39 Countries 📈

Sri Lanka’s Cabinet has cleared draft regulations for a six-month free visa program to boost tourism competitiveness. The move aims to lower entry barriers for key markets despite an estimated annual visa revenue loss of US$ 66 million. • Policy Scope The program targets passport holders from 39 countries, including major source markets like India, China, UK, Germany, France, and the US. Regulations now head to Parliament for final approval. • Economic Trade-off While the Treasury expects a revenue dip, the policy is designed to stimulate indirect gains across hospitality, transport, and retail sectors through higher visitor spending. • Current Performance March Mid-Month: 151,693 arrivals (1–25 March), a sharp 22% YoY decline due to regional hostilities and air route disruptions. Cumulative 2026: 708,348 arrivals to date, still reflecting a 4.45% YoY growth compared to 2025. • Risk Factors Authorities warned that Middle Eastern airspace disruptions could cost the tourism sector between US$ 10 million and US$ 15 million in weekly revenue, highlighting the industry's vulnerability to external shocks.

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📦 Sri Lanka Restricts Scrap Metal Exports to Shield Local Industry

The Cabinet has approved new legal measures to halt the export of scrap metal, aiming to address a critical shortage of raw materials affecting domestic manufacturers. • Policy Action: Implementation of strict legal provisions to prevent the bypass of existing export bans through the use of counterfeit product descriptions and alternative HS Codes. • Strategic Rationale: The move protects local small-scale industrialists by ensuring a steady supply of essential raw materials, reducing the reliance on more expensive imported scrap. • Scope of Restrictions: The export suspension covers several key metals and related products, including: Iron, Copper, Aluminium, and Brass. White Iron, High Carbon Iron, and China Plate. Aluminium Ingots, Zinc Ingots, and Copper Wire. • Context: This reinforces a 2020 directive to prioritize national industrial needs. The proposal, submitted by the Minister of Industry and Entrepreneurship Development, highlights a commitment to domestic value addition and employment stability within the manufacturing sector.

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Mandatory Electronic Asset Declarations Launched by CIABOC ⚖️

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has officially transitioned to a digital framework for financial transparency, effective today, March 31, 2026. • Governance & Compliance: A new centralized electronic system is now mandatory for the submission of all asset and liability declarations. • Digital Transformation: The move shifts away from manual filings to a streamlined electronic process to enhance monitoring and accountability within the public sector. • Legal Mandate: Based on current directives, the electronic filing is no longer optional, marking a significant step in Sri Lanka's anti-corruption and legal infrastructure reforms. • Context: This implementation aims to improve the efficiency of tracking high-level financial data, crucial for maintaining integrity in the national economy. _Note: Summary based on initial implementation data as of March 31, 2026._

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📈 Ceylon Chamber Urges Balanced Reforms in 2026 Tax Bill

The Ceylon Chamber of Commerce (CCC) has submitted comprehensive recommendations to the Ministry of Finance regarding the Inland Revenue (Amendment) Bill of 2026, emphasizing the need for a tax framework that supports business continuity and investment. • Thin Capitalisation Rules: The Chamber advocates for excluding negative reserves from gearing calculations to prevent excessive tax burdens on financially distressed firms. It also calls for the full allowability of finance costs on all genuine commercial borrowings. • Compliance & Penalties: Proposed 6-to-9 month timelines for submitting evidence are deemed too rigid. The CCC suggests more flexibility and argues against stringent penalties, including imprisonment, for minor compliance lapses to safeguard investor confidence. • Insurance Sector: Recommendations include deferring amendments to Section 67 pending further industry consultation. Key concerns involve the taxation of policyholder distributions and clarity surrounding IFRS 17 implementation. • Regulatory Powers: The CCC highlighted that the discretionary powers of the Commissioner General must be clearly defined and transparent to avoid economic uncertainty. The Chamber continues to engage with policymakers to ensure the bill is amended during the Committee Stage, aiming for a stable environment to attract private investment and support national recovery. 🇱🇰

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📈 Clarity Urged for Digital Services VAT Implementation

Sri Lanka is set to implement VAT on digital services provided by non-resident suppliers effective April 1, 2026, yet stakeholders warn of a significant "regulatory gap" regarding administrative guidance. • Implementation Status: While the policy was deferred from October 2025 to April 2026, the Inland Revenue Department (IRD) has yet to issue updated technical instructions, leaving global platforms reliant on a superseded July 2025 Gazette. • Key Concerns: • Lack of clear registration procedures for non-resident digital service providers. • Undefined responsibilities for intermediaries (e-marketplaces) and payment facilitators. • Absence of specific documentation and invoicing requirements for ICT/BPM and global tech sectors. • Economic Risks: Delay in proactive guidance risks non-compliance, tax disputes, and under-collection of revenue. Over 120 countries already have established frameworks that Sri Lanka is expected to follow to ensure revenue outcomes and system credibility. • Required Actions: Stakeholders are calling for an urgent implementation circular from the IRD to clarify filing processes and transitional rules before the 24-hour countdown to the new fiscal deadline. _Note: Based on current industry analysis and IRD public notices._

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⚖️ Sri Lanka’s Community Mediation Model: A Low-Cost Justice Revolution

Sri Lanka’s nationwide community mediation system is emerging as a global benchmark for efficient, low-cost dispute resolution, offering a viable alternative to the country’s heavily backlogged formal court system. 📈 • Key Performance Metrics (2023) • Nearly 250,000 cases received by mediation boards. • Almost 70% settlement rate for cases reaching a hearing. • Total of 329 Boards operational across the island. • Supported by 8,700 trained volunteer mediators (teachers, health workers, and community leaders). • Economic & Social Impact • Cost Efficiency: Delivers justice at a fraction of the cost of formal litigation for both the state and citizens. • Sector Specialization: Evolution of specialized boards to handle land conflicts and financial disputes, adapting to shifting economic needs. • Productivity: Reduces time-to-resolution, preventing minor disputes from escalating into lengthy, expensive civil cases that can stall economic activity for decades. • System Highlights • Established under the Mediation Boards Act of 1988 and overseen by an independent Commission. • Operates in community venues (temples, schools) without lawyers, focusing on interest-based solutions rather than adversarial litigation. • Highly scalable model with potential for "export" to other nations facing overloaded judiciary systems.

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Seminar on Competition Policy & Law: Strengthening Sri Lanka’s Economic Reforms 📈

• The Event: JICA, the World Bank, and the Presidential Secretariat convened over 70 policymakers and private sector leaders in Colombo to discuss a modern competition framework for Sri Lanka. • Core Objectives: The seminar focused on how fair competition can drive export growth, prevent monopolies, and enhance digital transformation and consumer choice. • Strategic Reforms: Senior Additional Secretary to the President highlighted ongoing measures to improve the business climate for SMEs, including: • An e-procurement platform. • Tariff reforms. • The National Single Window. • International Expertise: The Japan Fair Trade Commission (JFTC) shared insights from Japan’s experience in strict enforcement and the liberalization of the electricity market. • Key Economic Impact: JICA emphasized that competition policy is a vital pillar for recovery. Strengthening domestic industries will improve their global competitiveness and ensure long-term resilience. • Future Path: Experts concluded that success requires comprehensive legislation, a coherent policy, stronger enforcement capacity, and active engagement from the private sector and civil society.

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Urgent Call for Chemical Safety Reforms in Sri Lanka 📈

A recent report highlights systemic gaps in Sri Lanka's regulatory framework, posing significant risks to public health and the economy. Current oversight for consumer products is fragmented, leaving many daily-use items unregulated. • Critical Safety Findings: Investigations by the Consumer Affairs Authority revealed mercury levels in dozens of skin-lightening products exceeding national limits by "orders of magnitude." Similar risks are rising in the wellness and dietary supplement sector. • Regulatory Gaps: Oversight is currently split between the NMRA, SLSI, Ministry of Health, and CAA. The 2015 NMRA Act failed to fully carry forward previous safety provisions for the cosmetics industry, leaving a majority of products on the market unregistered. • Economic Impact: Unsafe products increase national healthcare spending, erode consumer trust, and create an unfair playing field for legitimate businesses adhering to high standards. • Proposed Solutions: • Establish a unified, science-based coordination body between existing agencies. • Implement toxicological risk assessments for imports and local manufacturing. • Expand national chemical testing capacity through ICT/BPM and university partnerships. • Adopt global models like Singapore’s mandatory registration or India’s restricted chemicals list. • Market Shift: With the rise of social media and online marketplaces, products often bypass traditional retail channels, requiring digital-first monitoring to protect the retail and e-commerce sectors.

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Appointments & Executive Moves

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Pradeep de Almeida Appointed to HNB Board 📈

• The Appointment: Hatton National Bank PLC (HNB) has appointed Pradeep de Almeida as an Independent Non-Executive Director, effective April 2026. • Professional Profile: A Chartered Engineer with nearly 30 years of experience, de Almeida is a specialist in telecommunications, digital transformation, and ICT infrastructure. • Key Experience: Served 27 years at Dialog Axiata PLC, including 14 years as Group Chief Technology Officer. Led the deployment of 5G, LTE, and FTTH technologies in Sri Lanka. Currently serves as Director of Engineering Technology Operations at EDOTCO Group, overseeing strategy across seven countries. • Strategic Impact: His expertise in digitalization, AI, and security is expected to strengthen HNB’s technology strategy and governance frameworks as the banking sector increasingly prioritizes digital transformation. • Governance: Brings extensive board experience from entities including SLINTEC and Digital Reality Lanka, with an academic background from the University of Moratuwa and INSEAD.

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Prasad Gopalan Appointed to Sunshine Holdings Board 📈

Diversified conglomerate Sunshine Holdings PLC has appointed international finance veteran Prasad Gopalan as an Independent Non-Executive Director, strengthening its leadership with deep global expertise. • Expertise & Experience: Gopalan brings over 25 years of experience from the International Finance Corporation (IFC), a member of the World Bank Group. He previously managed a global agribusiness and forestry portfolio valued at US$ 4.5 Bn. • Sector Focus: His background spans agribusiness, manufacturing, healthcare, and financial institutions. This aligns with Sunshine Holdings' core interests in healthcare and consumer goods, potentially driving strategic growth and diversification. • Strategic Role: Prior to this appointment, he served on the board of Sunshine Healthcare Lanka Limited. His elevation to the group board leverages his history of managing annual investment programs of US$ 1.5–2 Bn. • Academic Credentials: Holds a Master of Public Policy from Harvard University and advanced engineering degrees from Pennsylvania State University and BITS Pilani.

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Stasshani Jayawardena Appointed to Elpitiya Plantations Board 📈

Elpitiya Plantations PLC has announced the appointment of Stasshani Jayawardena as a Non-Executive Director, further strengthening its leadership team with a veteran of the Aitken Spence Group. • Key Leadership Milestones: Jayawardena currently serves as the Executive Chairperson of Aitken Spence PLC (appointed Feb 2025), making history as the first female Chairperson in the Group's 157-year tenure. She also holds key roles as Chairperson of Aitken Spence Hotel Managements and Deputy Chairperson of Lanka Milk Foods (CWE) PLC. • Strategic Influence: With over a decade of experience, she holds board seats at Melstacorp PLC, Distilleries Company of Sri Lanka PLC, and the Stassen Group. Her expertise spans across the tourism, hospitality, and fmcg sectors, contributing to national economic diversification and corporate governance. • Institutional Representation: She is currently Vice Chairman of the Ceylon Chamber of Commerce (Tourism Sector) and a board member of the Colombo International Arbitration Centre. Her background includes international exposure, having interned for former US President Bill Clinton and serving as a member of the PwC NextGen Advisory Council. • Accolades: Recognized as a "Trailblazing Corporate Leader" (2025) and LMD’s "Emerging Businessperson of the Year" (2025), her appointment is expected to bring fresh strategic perspectives to the plantation sector.

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📈 ACL Cables PLC Appoints Kusal Jayawardana as Group CEO

Effective 1 April 2026, ACL Cables PLC has officially appointed Kusal Jayawardana as Director/Group Chief Executive Officer, strengthening its leadership in the manufacturing and industrial sectors. • Executive Profile: Jayawardana brings nearly 30 years of experience, including 17 years at the Board and C-suite levels. He transitioned to this role following his tenure as Deputy Managing Director of Alliance Finance Co PLC. • Sector Expertise: His extensive background spans investment banking, energy, ICT, and financial services. He has previously held chairmanships at Lanka Ventures PLC and LVL Energy Fund PLC, and served as CEO of NDB Capital Ltd (Bangladesh). • Strategic Impact: Known for pioneering capital market products, including Sri Lanka’s first private equity fund (Emerald Sri Lanka Fund). Expertise in securitization and derivatives is expected to drive innovation within ACL’s diversified operations. Professional qualifications include CFA, CIMA (UK), and CGMA (USA) credentials. • Economic Context: The appointment aligns with ACL Cables’ strategy to enhance corporate governance and market leadership, contributing to Sri Lanka’s broader industrial and economic progress through sustainable growth and innovation.

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📈 Ceylon Beverage Group Announces Key Board Appointments

Ceylon Beverage Holdings PLC and Lion Brewery (Ceylon) PLC have announced strategic changes to their leadership teams to strengthen corporate governance and strategic oversight. • New Appointments Mahen De Saram: Appointed as an Independent Non-Executive Director for both Ceylon Beverage Holdings and Lion Brewery. Ranil Goonetilleke: Appointed as a Non-Executive Director to the Ceylon Beverages Board. • Professional Backgrounds Mahen De Saram: Brings over 30 years of global experience, including senior roles at British American Tobacco (BAT) across Vietnam, Australia, and PNG. He currently serves as Group Finance Director at CBL Group and is a Board member at Central Finance Company PLC. Ranil Goonetilleke: A veteran in the beverages sector, he previously served as Director Finance at Lion Brewery for nearly two decades. He holds current directorships at Namunukula Plantations PLC, Ceylinco Holdings, and the National Savings Bank. • Strategic Context These appointments bring extensive expertise in finance, risk management, and manufacturing to the group. The move aligns with the companies' focus on robust governance and operational transformation within Sri Lanka’s consumer goods and industrial sectors.

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Leadership Transition at SriLankan Airlines ✈️

• National Carrier Chairman Sarath Ganegoda and Director Rohan Goonetilleke have resigned from the Boards of both SriLankan Airlines and SriLankan Catering, effective 31 March 2026. • Dimal Arandara, a former Chairman of Sri Lanka Telecom, has been appointed as Acting Chairman by the Treasury to ensure operational continuity during the transition. • The resignations come at a critical time as the aviation sector faces significant global and operational pressures; however, no official reasons for the departures were disclosed. • The reconstituted Board now includes Acting Chairman Arandara, Flt./Lt. (Retd.) Sugath Rajapakse, Vipula Gunatilleka, Dr. Harsha Cabral, PC, Dumith Fernando, and Senarath Liyanage. • This change in oversight for the state-owned enterprise (SOE) occurs as the government continues to manage the airline's strategic direction and fiscal stability.

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📈 CIMA President John Graham to Visit Sri Lanka in April

CIMA President and Association Co-Chair John Graham will visit Sri Lanka from April 5–9, 2026, to engage with the local finance and business sectors. The visit aims to strengthen the development of the management accounting profession and support Sri Lanka’s economic transition from recovery to resilience. • Key Engagements: Chief Guest at the CGMA Convocation for newly qualified professionals. Keynote speaker at the CXO Forum themed "From Recovery to Resilience – The World Is Being Reordered." Host of the annual CIMA President’s Reception for business leaders and stakeholders. • Strategic Focus: Talent Development: Meetings with corporate partners to address workforce readiness and future skills in the ICT/BPM and finance sectors. Global Vision: Implementation of the "Finance and Accounting 2040" project to modernize the profession. Institutional Growth: Focus on nurturing new talent to support national economic diversification and professional standards. • Profile: John Graham, elected as the 92nd CIMA President in June 2025, brings extensive experience as a CFO and Director of Finance within the UK's National Health Service (NHS). His visit reinforces Sri Lanka’s position as a key hub for qualified finance professionals globally.

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Asia Siyaka Commodities Appoints Chamara Dissanayake as CEO 📈

Asia Siyaka Commodities PLC has announced key leadership changes effective 1 April 2026, strengthening its management team within the critical tea and commodities sector. • New Leadership Appointments: Chamara Dissanayake: Appointed as CEO. Currently serving as Group COO, he brings extensive expertise in supply chain management and holds a Master’s from Birmingham City University. He also serves as a consultant to the Asian Development Bank for the tea sector value chain. Shashike Silva: Appointed as Executive Director. A veteran with over 20 years in tea broking and marketing, formerly a Director at Forbes and Walker. Kirk Wijesekera: Appointed as Executive Director. With 26 years of experience, he is a specialist in High and Medium Grown tea marketing and an established tea taster. • Strategic Context: The appointments draw from deep institutional expertise, with all three directors holding significant roles within the Colombo Tea Traders’ Association and Colombo Brokers’ Association. This leadership transition aims to bolster Asia Siyaka’s position in the plantation and commodities trading landscape, ensuring continuity in client advisory and market development. • Sector Impact: The move reinforces the professionalization of the tea value chain, a vital component of Sri Lanka’s export economy and a major source of foreign exchange and employment.

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Suren Rajakarier Appointed Managing Partner of KPMG Sri Lanka & Maldives 📈

• Leadership Change: Suren Rajakarier assumes duties as Managing Partner effective 1 April 2026, succeeding Priyanka Jayathilake, who led the firm since April 2023. • Experience & Background: Rajakarier brings over 38 years of experience in audit and assurance. He previously served as Chief Operating Officer (COO) and led the firm’s audit practice for nearly two decades. • Strategic Impact: Recognized as an accredited IFRS partner, he has managed landmark transactions in the telecom, energy, and insurance sectors, including the privatization of the Queen Elizabeth Container Terminal. • Public Sector & Governance: Served as audit partner for major state-owned enterprises (SOEs) including Bank of Ceylon, CEB, and SriLankan Airlines, focusing on strengthening national financial reporting and governance structures. • Professional Contributions: Currently chairs the Statutory Auditing Standards Committee, playing a key role in formulating national accounting and auditing standards under Act No. 15 of 1995. • Outgoing Leadership: Priyanka Jayathilake is credited with expanding KPMG’s ICT/BPM and advisory capabilities, overseeing a team of 600+ professionals in technology and risk consulting.

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Senkadagala Finance Appoints N. Vasantha Kumar as Chairman 📈

Senkadagala Finance PLC has announced key leadership changes effective 1 April 2026, strengthening its board with extensive expertise in banking, digital transformation, and real estate. • New Leadership N. Vasantha Kumar appointed as Chairman. An Independent Non-Executive Director with 37+ years in financial markets and treasury. He is the former CEO/GM of People’s Bank and currently holds board seats at DFCC Bank and Ceylinco Holdings. • Board Additions Priyanka Jayatilake (Independent Non-Executive Director): A veteran with 40 years of experience in consulting and audit. Formerly the Managing Partner of KPMG Sri Lanka, he brings specialized knowledge in ICT/BPM, cybersecurity, and digital risk. Sonal Balasuriya (Non-Independent Non-Executive Director): A Chartered Architect with a background in real estate finance and asset optimization. He also serves on the board of Senfin Asset Management. • Strategic Impact The appointments signal a focus on robust governance and digital transformation within the non-banking financial institution (NBFI) sector, leveraging Kumar's deep banking roots and Jayatilake's expertise in technology integration.

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### Shenelle Rodrigo Named Sri Lanka’s First Lonely Planet Destination Correspondent 🇱🇰

Key Milestone: Global travel authority Lonely Planet has appointed Shenelle Rodrigo as the country's first-ever Destination Correspondent, marking a significant shift toward locally-driven storytelling in the tourism sector. Economic Impact: Through the "Sheneller" platform, Rodrigo and partner Shehaan Thahir have reached over 3 million international viewers. Their real-time reporting during crises (COVID-19, 2022 economic crisis, and recent cyclones) is credited with safeguarding approximately US$ 800,000 in tourism revenue by maintaining traveler confidence. Industry Integration: • Earlier in 2026, Sheneller became the first creator-led series featured on Sri Lankan Airlines in-flight entertainment. • The appointment signals the growing maturity of the local creator economy and its role in countering misinformation. Future Ventures: • Sheneller Ventures: Focuses on curated, experience-driven tours to diversify the travel & hospitality offering. • Holivate: A new platform launching to link hotels with creators through performance-based booking conversions, aiming to digitize tourism marketing. 📈

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

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

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Financial & Investment News

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nVentures Records High-Value Exits Linked to Sri Lankan Tech Talent 📈

Sri Lanka-Singapore-based venture capital firm nVentures has announced significant exits involving global giants, highlighting the scalability of the local ICT/BPM and fintech sectors. • Major Realized Exits • WealthOS: The cloud-native wealth management platform, featuring a Colombo-based engineering team, was acquired by JPMorgan. All 60 employees were integrated into the bank’s International Consumer Banking division. • Kaiju Labs: Seeded by nVentures, this Web3 startup was acquired by KAST Finance. nVentures achieved a 2x MOIC (Multiple on Invested Capital) and 48% IRR within 20 months. KAST is now valued at US$ 600 Mn following a US$ 80 Mn Series A. • Fund I Performance • Deployed under US$ 3 Mn across 13 investments in South Asia and the UK. • Reported metrics: 1.81x MOIC and 30% IRR. • Portfolio companies have seen mark-ups between 2.2x and 6.4x in subsequent rounds. • Strategic Outlook: Fund II • Target: US$ 10 Mn to back Enterprise AI startups. • Model: Supporting Sri Lankan founders globally (Australia, UK, USA) while anchoring core engineering operations in Colombo. • Focus: Leveraging high-discipline, early-stage cheques to drive diversification in Sri Lanka's high-tech export economy.

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Govt. Flags Slow Disbursement of Rs. 95 Bn MSME Credit 📈

Deputy Minister Chathuranga Abeysinghe has criticized the banking sector for "uncooperative" behavior, alleging that branches are prioritizing high-interest internal products over State-funded concessional schemes. • Overall Figures: Out of a total Rs. 95.69 Bn allocated for MSME financing initiatives in 2026, only Rs. 17.49 Bn (approx. 18%) has been disbursed as of March 10, 2026. • Government-Funded Scheme: • Total Allocation: Rs. 22.2 Bn • Total Disbursed: Rs. 7.18 Bn (32% utilization) • Coverage: 630 loans processed to date. • Sector Performance: • State Banks: Lagging significantly with utilization rates of only 11%–18% (Rs. 2.18 Bn disbursed). • Private Banks: High efficiency shown by Commercial Bank (103% utilization), HNB (102%), and NDB (100%). • Banking Context: Despite slow lending to small businesses, the sector reported a 19.3% YoY increase in post-tax profits (Rs. 369 Bn) in 2025. The credit-to-deposit ratio stands at 69.9%, indicating a conservative lending stance with high liquidity. • Action for Entrepreneurs: MSMEs facing bank-level bottlenecks are advised to contact Industrial and Entrepreneurship Officers at Divisional Secretariats to bypass delays.

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

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

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

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

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Wiyawasayakaya Business Summit Draws 250+ Participants in Galle 📈

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

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

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

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

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

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

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

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Product & Service Launches / Business Expansion

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

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

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Prym Intimates Expands Global Footprint with New Vietnam Facility 📈

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

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

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

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

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

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

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

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

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

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

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

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

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