Financial & Investment News
View all(12)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.
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.
📈 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.
### 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.
### Expert Panel: Why Sri Lanka Struggles to Attract FDI 📈
A high-level symposium featuring experts from the US, China, and India has diagnosed key structural and corporate failures hindering Sri Lanka’s foreign direct investment (FDI) inflows. Key Figures & Performance • Annual FDI Inflow: Currently ~US$ 1 Bn, representing only 1% of GDP, significantly trailing the 3–4% seen in competing emerging markets. • Corporate Returns: Analysis of the top 25 listed firms shows only 5 consistently generate returns above the cost of capital. • China's Outbound Investment: Reached US$ 174 Bn in 2025, presenting a massive untapped opportunity for local partnerships. Critical Bottlenecks • Private Sector Accountability: Experts noted that tax incentives are no longer a differentiator; investors prioritize "responsibility, discipline, and performance." • Ecosystem Gaps: Beyond tax breaks, the country lacks a cohesive ecosystem involving skilled labor, industrial land, and streamlined logistics. • Institutional Weakness: A significant lack of professional and technical capacity to negotiate and manage Free Trade Agreements (FTAs) compared to regional peers like Vietnam. High-Potential Sectors • Tourism: Strategic focus needed on India’s 1.4 billion population, specifically major urban hubs. • Manufacturing & ICT/BPM: Opportunities to integrate into regional supply chains (e.g., Chennai industrial clusters) and leverage the skilled technology services workforce. • Logistics: Leveraging the strategic maritime location, provided there is better regional connectivity and a healthy national airline. Strategic Outlook To transition into an intermediate production hub, Sri Lanka must shift from serving a small domestic market to an export-oriented model backed by a stable legal system and consistent policy. _(Based on provisional 2025/26 data)_.
Launch of $ 100 Mn Sri Lanka Opportunity Fund for Global Investors 📈
ACP Asset Management has launched the Sri Lanka Opportunity Fund, the first-ever European-regulated (UCITS) fund dedicated exclusively to Sri Lankan assets. Regulated by the FMA of Liechtenstein, the fund offers international investors a liquid, high-governance entry point into the country’s economic recovery. • Fund Status & Targets: - Already seeded with US$ 10 Mn. - Expected inflow of US$ 25 Mn within the next 30 days. - Target Assets Under Management (AUM): US$ 100 Mn within 6–12 months. • Performance Track Record: - Building on a prior strategy that delivered USD returns of 25.60% (2025), 48.55% (2024), and 38.50% (2023). - Cumulative returns of 77.55% since December 2021, significantly outperforming the MSCI Frontier Markets Index. • Investment Strategy: - Focuses on listed equities and fixed income (Sovereign and Corporate bonds in USD/LKR). - Targets high-growth sectors: Banking, Consumer, and Export-oriented industries. - Leverages attractive equity valuations currently at ~11x price-to-earnings. • Market Outlook: - Capitalizes on Sri Lanka's economic restructuring, stable debt profile, and rebounds in Tourism and Manufacturing. - The UCITS structure provides a 30% liquidity buffer, signaling Sri Lanka's readiness to operate within international regulatory frameworks.
Sri Lanka to Host Landmark Global Investment Forum on June 10 📈
• Event Overview: The Sri Lanka Export Development Board (EDB) has announced plans for what is expected to be the largest and most extensive investment forum in the country’s history, scheduled for June 10, 2026. • Strategic Objective: The forum aims to bring top-tier global investors to Sri Lanka to facilitate direct, face-to-face engagement with local exporters, focusing on expanding international market linkages. • Sector Impact: The initiative targets growth across key national sectors, including export manufacturing, apparel & textiles, and agricultural exports, by providing a platform for discussions on expanding export opportunities. • Key Highlights: • Expected to be the most "extensive and attractive" gathering of its kind in Sri Lanka. • Focus on strengthening global buyer-investor relationships. • Led by EDB Chairman Mangala Wijesinghe to drive long-term export sector growth. _Note: Summary based on provisional EDB announcements as of February 25, 2026._
## Capital Alliance Lists Third Closed-End Fund on CSE 📈
Capital Alliance Investments Ltd (CALI) officially listed the units of its CAL Three Year Closed End Fund on the Colombo Stock Exchange (CSE), marking another milestone in the growth of structured investment vehicles in Sri Lanka. • Listing Details: A total of 841,263,375 units were listed following a ceremonial bell-ringing at the CSE. This follows CALI’s previous launches of the Five Year Closed End Fund (2025) and the Five Year Optimum Fund (2024). • Fund Strategy: The fund is a closed-end fixed income unit trust with a three-year tenure. It focuses on capital preservation and growth through a diversified portfolio of fixed income instruments, governed by strict internal credit filters and liquidity monitoring. • Market Context: The listing reflects rising domestic interest in unit trusts as a professional entry point for retail investors. In a stabilizing yield environment, these funds aim to provide predictable cash flow and channel national savings into productive economic activity. • Sector Impact: This development strengthens the financial services sector by expanding the range of professionally managed investment products available, supporting broader capital market development during the country’s economic recovery.
Understanding Fixed Income: Bonds & the Sri Lankan Market 📈
A collaborative insight by CFA Society Sri Lanka, SEC, and CSE highlights the role of bonds in building resilient portfolios through stable income and risk mitigation. • Core Mechanics • Bonds act as loans to the Government or corporates in exchange for regular "coupon" (interest) payments. • Maturity periods: Short-term (<3 yrs), Medium-term (3–10 yrs), and Long-term (>10 yrs). • Secondary Market Inverse: Bond prices and interest rates move in opposite directions; falling rates boost existing bond values. • Market Instruments in Sri Lanka • Government Securities: Treasury Bills (discounted short-term) and Treasury Bonds (fixed-term) issued via CBSL. • Corporate Debentures: Companies issue debt for expansion, typically with ~5-year maturities, often listed on the CSE. • Sustainable Finance: Emerging Green, Blue, and Social Bonds (GSS+) targeting ESG-focused projects. • Yields & Risk Comparison • Historical returns (1994–2024): T-Bills averaged 11.34% with no principal loss, vs. ASPI (shares) at 14.57% with high 37.10% volatility. • Key risks: Interest rate risk, inflation risk, credit (default) risk, and liquidity risk. • Credit ratings (e.g., Fitch, Moody’s) help assess an issuer's likelihood of debt repayment. • Investment Strategy • Bonds offer predictable income and priority in liquidation over shareholders. • Recommended for diversification to offset stock market volatility, especially for conservative investors and retirees.
## Patient Capital Rebuilding the North: $ 5M Deployed 📈
Veteran banker Rajendra Theagarajah, via the Cinnamon Global fund, has outlined a "patient-capital" model to drive sustainable wealth in Sri Lanka’s Northern Province, moving away from charity toward long-term growth. • Overall Investment & Strategy Total Deployed: Approximately US$ 5 Mn over four years. Focus: Growth-stage enterprises (not startups/seed funding). Model: Revenue-linked returns instead of traditional collateral or interest. Ticket Sizes: Typically US$ 25,000 – 50,000 per entity; largest single investment at US$ 700,000. • Sector Breakdowns & Verticals Agriculture: Focus on value addition and heritage rice (expanded to 350+ farmers). Aquaculture & Fisheries: Supporting coastal economic development. ICT/BPM: Innovative ventures to retain local talent and prevent urban migration. Logistics: Services supporting the broader regional ecosystem. • Key Impact Highlights Financial Inclusion: Transitions informal businesses into the formal banking system through governance and compliance support. Agricultural Tech: Implementation of soil mapping and AI-driven crop advisory for heritage rice. Export Potential: Targeting UK and US markets for low-glycemic rice varieties. Local Empowerment: Focus on Tamil-language engagement and grassroots trust-building to bridge knowledge gaps.
Gold & Silver Markets Shaken by Global Crash: Implications for Sri Lanka 📈
The global financial landscape witnessed a seismic shift as gold and silver prices suffered a sharp collapse, erasing an estimated US$ 3 Trillion in market value within 90 minutes. Driven by algorithmic selling and mass profit-taking, the "flash crash" has critical repercussions for Sri Lanka’s export-driven economy. • Market Breakdown & Volatility • Gold prices plunged to approximately US$ 5,135/oz, while silver fell to nearly US$ 109/oz. • Locally, 24K gold reached a milestone of Rs. 435,050 per 8g (1 sovereign) earlier in February before the correction. • The crash was accelerated by high-frequency trading and margin calls, impacting global liquidity. • Sector Impact & Exports • Gems & Jewellery: As a net importer of gold for manufacturing, Sri Lanka faces extreme volatility in working capital and inventory valuation. However, the sector showed resilience in 2025, with Diamonds, Gems & Jewellery exports estimated to grow 46.15% YoY (reaching US$ 23.91 Mn in Dec 2025). • Apparel & Textiles: Remained the top revenue driver, earning US$ 4.9 Bn in 2025 (+5.34% YoY). • Tea: Export earnings reached US$ 1.5 Bn (+4.97% YoY) in 2025. • Economic & Policy Outlook • Total exports for 2025 reached US$ 17.25 Bn (+5.6% YoY), with a US$ 20 Bn target set for 2026. • Global volatility pressures the Sri Lankan Rupee and complicates Central Bank reserve valuations, as gold is a key component of official foreign exchange reserves. • Experts advise a shift from price speculation to margin protection and design-based value addition for local stakeholders.
Unit Trust Industry Hits Rs. 610 Bn Asset Milestone 📈
Sri Lanka's unit trust industry recorded a strong start to 2026, with Assets Under Management (AUM) growing 6.1% YoY to surpass the Rs. 600 Bn mark by end-January. • Overall Growth: Total AUM reached Rs. 610 Bn, marking a 3.8% increase from December 2025. The industry now comprises 84 funds managed by 16 companies. • Sector Performance: • Equity-related funds were the primary driver, doubling YoY to Rs. 67 Bn and surging 10.2% in January alone. • Fixed income funds maintained steady growth, rising 2.9% YoY. • Investor Participation: The industry added 3,110 new unit holders in January (+35.0% YoY), bringing the total investor base to 147,020—a 25.7% YoY increase. The shift toward equity reflects high investor confidence in capital market performance and a strategic move toward long-term capital appreciation. The Unit Trust Association of Sri Lanka (UTASL) continues to focus on enhancing financial literacy and accessibility to further integrate retail investors into the formal economy. _Data based on UTASL January 2026 industry report._