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📈 Sri Lankan Expertise and AI Tech Featured at Cambridge Launch of Economic Crime Index

The Economic Crime & Geopolitics Index (ECGI) was introduced at Jesus College, University of Cambridge, during the 43rd Cambridge International Symposium on Economic Crime. Panel discussions were chaired by Sri Lankan expert Asanga Abeyagoonasekera. • Key Regional Highlights & Drivers • High-profile cases emphasize that economic crime threatens national security, governance, and public trust. • Focuses on regional risks, including Sri Lanka's alleged US$ 1 Bn illegal outward-transfer scheme and ongoing corruption probes into SriLankan Airlines. • Integrates AML/CFT exposure, civic trust, corruption depth, and geopolitical foreign influence. • Technological & Framework Innovations • Conscience IQ: Measures human factors such as corruption tolerance, reporting fear, and institutional fatigue. • Mithra Technology: Provides an evidence layer featuring tokenized documents, chain of custody, and verifiable data lineage. • Shifts from standard perception tables to dynamic risk foresight and proactive scenario testing. • Scope & Expansion • Initial focus covers South Asia and ASEAN regions, with plans for global expansion alongside international researchers and policymakers.

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Product & Service Launches / Business Expansions

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📈 Sri Lankan Expertise and AI Tech Featured at Cambridge Launch of Economic Crime Index

The Economic Crime & Geopolitics Index (ECGI) was introduced at Jesus College, University of Cambridge, during the 43rd Cambridge International Symposium on Economic Crime. Panel discussions were chaired by Sri Lankan expert Asanga Abeyagoonasekera. • Key Regional Highlights & Drivers • High-profile cases emphasize that economic crime threatens national security, governance, and public trust. • Focuses on regional risks, including Sri Lanka's alleged US$ 1 Bn illegal outward-transfer scheme and ongoing corruption probes into SriLankan Airlines. • Integrates AML/CFT exposure, civic trust, corruption depth, and geopolitical foreign influence. • Technological & Framework Innovations • Conscience IQ: Measures human factors such as corruption tolerance, reporting fear, and institutional fatigue. • Mithra Technology: Provides an evidence layer featuring tokenized documents, chain of custody, and verifiable data lineage. • Shifts from standard perception tables to dynamic risk foresight and proactive scenario testing. • Scope & Expansion • Initial focus covers South Asia and ASEAN regions, with plans for global expansion alongside international researchers and policymakers.

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📈 Cool Planet Partners with Dialog Pay for Digital Payments

Dialog Axiata PLC has integrated fashion and lifestyle retailer Cool Planet into its Dialog Pay merchant network, enabling LankaQR payments across 14+ Cool Planet outlets islandwide. • Partnership Overview: Customers can now use Dialog Pay via the Dialog Pay App or MyDialog App to buy apparel & textiles, footwear, accessories, and lifestyle essentials, receiving complimentary Dialog mobile data on eligible LankaQR transactions. • Strategic Alignment: The initiative supports Sri Lanka’s transition toward a cash-light economy by driving digital adoption. Dialog Pay is currently accepted across 100,000+ retail outlets nationwide. • Ecosystem Integration: Dialog Pay allows users to link eZ Cash or bank accounts to perform LankaQR transactions, transfer funds, and access financial services including savings, fixed deposits, and loans powered by Dialog Finance.

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☕ Dilmah Targets India with $1M+ Luxury Lounge Expansion

iconic Sri Lankan tea brand Dilmah Ceylon Tea Company plans to invest over US$ 1 Mn initially to establish a premium tea lounge network in India, targeting growing non-alcoholic beverage demand among younger consumers. • Investment & Expansion Plans • Initial Investment: US$ 1 Mn+ to launch up to 10 outlets by 2030 under the Urban Estate concept. • Target Cities: Bengaluru, Mumbai, and Delhi under consideration for flagship rollout (1,200–2,000 sq ft formats), followed by franchise expansion in malls, airports, and office parks. • Current Reach: India currently generates <1% of global revenue; Dilmah operates ~16 tea lounges globally across Europe, East Asia, West Asia, Australia, and the Pacific. • Strategic Focus & Value Addition • Product Concept: Focuses on speciality teas, tea-infused mocktails, and food pairings, shifting away from bulk commodity sales to position tea as a high-end experience. • Sourcing Strategy: Introducing the Thambapanni Naksha collection, collaborating with ~26 Indian producers to blend Assam and Darjeeling teas with Sri Lankan ingredients like cinnamon. • Economic Context • Aligns with broader movement within Sri Lanka's tea export sector to shift from bulk exports to high-value branded retail, direct consumer engagement, and regional market diversification.

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✈️ Vietnam Airlines Launches Direct Flights to Sri Lanka

• Inaugural Connection: Vietnam's national carrier, Vietnam Airlines, officially commenced direct air services between Ho Chi Minh City and Colombo (Bandaranaike International Airport) on August 16. • Traffic & Operation: The inaugural flight (VN-671), operated using an Airbus A320, arrived with 164 passengers and departed with 172 passengers on the return leg. • Schedule & Flight Time: The service will operate three times weekly (Sundays, Wednesdays, and Fridays) with an estimated flight duration of 4 hours and 30 minutes. • Economic Impact: The new route is expected to boost air connectivity, enhancing bilateral travel for tourism, trade, and business between Sri Lanka and Vietnam.

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📈 Gamma Interpharm Expands Sri Lanka’s Pharma Export Footprint into Cambodia

Gamma Interpharm Ltd. has officially commenced exporting Sri Lankan-manufactured pharmaceuticals to Cambodia, marking a major milestone in the country's local manufacturing and export diversification strategy. • Milestone & Market Entry: - Dispatched the first export shipment to Cambodia on 14 August 2026. - Becomes the first truly Sri Lankan pharmaceutical manufacturing company to enter the Cambodian market. • Sector & Operational Highlights: - Backed by a 60-year heritage with historic roots linked to global giants Pfizer Inc. and Warner Lambert Inc. - Facility operates under WHO guidelines and holds approval from Sri Lanka’s National Medicines Regulatory Authority (NMRA). - Highlights the growing international competitiveness and quality capabilities of Sri Lanka's pharmaceutical manufacturing sector. • Future Expansion Plans: - The entry into Cambodia serves as a baseline for broader regional growth. - Preparations are currently underway to expand export footprints into Vietnam and the Philippines.

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Govt. Launches Unified Digital Platforms for Fisheries and Plantations via IDAT 📈

• Overview: The Sri Lankan Government has handed over Government-owned Decision Support Systems (DSS) for the fisheries and plantation sectors under the Inclusive Digital Agriculture Transformation (IDAT) Program to strengthen evidence-based governance, resource management, and digital public infrastructure. • Fisheries Sector DSS: Integrates data from 6 state entities, including NAQDA, Ceylon Fisheries Harbours Corp, Ceylon Fisheries Corp, Cey-Nor Foundation, North Sea Ltd, and the Central Fish Market. Features dashboards, analytics, and alerts for production, aquaculture, and sustainability. • Plantation Sector DSS: Consolidates data from 7 key bodies to monitor performance, district trends, exports, subsidies, and climate impacts across major crops: • Tea (Sri Lanka Tea Board, TSHDA) • Rubber (Rubber Development Dept, RRISL) • Coconut (Coconut Cultivation Board, CDA) • Cashew (Sri Lanka Cashew Corporation) • Program Delivery: Executed by the IDAT Consortium—comprising the Ministries of Fisheries, Plantation, and Digital Economy alongside Sarvodaya, PwC, MillenniumIT ESP, and PMO Connect to Care (CTC)—with support reviewed by a Gates Foundation delegation.

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📈 Sierra Cables Approves $ 3.23 Mn Investment to Double Export Capacity

Sierra Cables PLC has approved a $ 3.23 million capital investment in machinery and infrastructure to double its export production capacity, driven by strong overseas demand. • Expansion Timeline: Expected to complete by end-2026/27 FY, with commercial operations launching on 1 April 2027. • Q1 2026 Performance: Revenue grew 94% YoY to Rs. 5.6 Bn; net earnings rose 69% YoY to Rs. 706.3 Mn. Net assets stood at Rs. 17.88 per share. • 2025/26 FY Export Boom: Export revenue surged 359% YoY to Rs. 5 Bn, driven by key markets in North America, the Indian Ocean region, and Africa, aiding export diversification and foreign currency inflows. • Overall FY Performance: Group revenue hit Rs. 16 Bn. Domestic sales increased 35% YoY to Rs. 11 Bn through dealer networks and project business. • Market Reaction: Share price closed unchanged at Rs. 32.60.

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📈 Hemas Holdings Targets Bangladesh and Kenya for Long-Term FMCG Expansion

Hemas Holdings PLC is expanding its emerging-market footprint, setting sights on Bangladesh following its $ 16.2 Mn entry into Kenya (acquiring a 75% stake in Twiga Stationers). The group aims to capture high-value market segments in beauty and men's grooming, backed by an earmarked $ 100 Mn investment fund for global and local growth. • Market Focus & Strategy: Targeting Bangladesh’s 180 Mn population and rising consumer demand. Hemas is leveraging lessons from navigating Sri Lanka's economic volatility to capture emerging market opportunities over a 5 to 10-year horizon. • Existing Portfolio: Expanding local market offerings beyond current products like Kumarika and Eva. • Financials & Growth (FY26): • Home & Personal Care (Bangladesh): Revenue rose 11% YoY in 4Q and 13% YoY for full-year FY26. • Earnings: Surge of over 140% YoY in FY26 due to improved product mix and cost controls, despite a minor 4Q earnings dip from planned promotional spends. • Sector Trends: Value-Added Hair Oil value grew 3.9% YTD as of Dec 2025 despite volume contraction.

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📈 Bank of Ceylon Launches C Flex Corporate to Boost Digital Cash Management

Bank of Ceylon (BOC) has launched 'C Flex Corporate', a comprehensive digital cash management solution aimed at transforming financial operations for Sri Lanka's corporate banking and SME sectors. Key details include: • Core Functionality: Replaces existing corporate online banking with a single, secure platform integrating real-time account monitoring, liquidity management, bulk payments, and automated collections. • Operations & Integration: Supports high-volume transactions (salaries, supplier payments) via CEFT, RTGS, and USD Online. Features ERP system integration and Virtual Account Management (VAM) for automated reconciliation. • Governance & Security: Incorporates multi-level approval hierarchies, dual authorization, 2FA, encryption, and custom user access controls to strengthen corporate financial governance. • Economic Impact: Designed to enhance working capital efficiency, support group structure oversight (conglomerates and subsidiaries), and drive national business digitalization across both large enterprises and growing SMEs.

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🚗 Toyota Lanka Expands Operations in Gampaha

• Facility Consolidation: Toyota Lanka Ltd has expanded its Gampaha presence—originally established in 2008 as a spare parts unit—by integrating Brand-New Vehicle Sales, Genuine Parts, and Tyre Zone under a single roof as of 6 August 2026. • Network Expansion Strategy: The move is part of the company's broader effort to strengthen its islandwide footprint, targeting a network total of 30 facilities by the end of the 2026 financial year. • Capacity & Skill Building: Beyond infrastructure, the company supports local automotive technical training through the Toyota Lanka Auto Academy, developing skilled youth for domestic employment and global opportunities.

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💻 ASUS Launches AI-Powered ExpertBook Ultra in Sri Lanka

• Flagship Launch: ASUS introduced its flagship Copilot+ PC, the ExpertBook Ultra, aimed at CXOs and corporate leaders as Sri Lanka transitions into an AI-first era. • Key Specifications: The flagship model features a magnesium-aluminum chassis starting at 0.99 kg (10.9 mm thin), powered by up to Intel Core Ultra X9 (Series 3) processors, an advanced NPU (50 TOPS), PCIe Gen 5 storage, LPDDR5X RAM, and a 14-inch 3K 120Hz Tandem OLED touchscreen. • Portfolio Expansion: Broadened its commercial footprint by launching the ExpertBook B-series (B3, B5) and P-series (P3, P5) in 14-inch and 16-inch configurations, supporting up to 64GB DDR5 RAM and Dual SSDs for enterprise scalability. • Enterprise Security & Reliability: Features ASUS ExpertGuardian, Microsoft Pluton, hardware BIOS protection, and US military-grade durability (MIL-STD 810H) to support corporate operations and the growing ICT/BPM ecosystem.

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🇱🇰 Sri Lanka Launches Rs. 1.5 Bn Interim Tourism Campaign Ahead of Global Push

Sri Lanka Tourism has kicked off a Rs. 1.5 Bn interim promotional campaign running from August 2026 to April 2027 to boost international destination marketing. This bridges the gap until a full-scale, Rs. 5 Bn global nation-branding campaign launches in March/April 2027. • Targets & Growth: • 2026 Target: Revised to 2.7 Bn visitors and US$ 4.2 Bn in revenue (vs. 2.36 Bn arrivals and US$ 3.2 Bn earnings YoY). • 2027 Target: Aims for 3 Bn visitors and US$ 5 Bn revenue, scaling up to US$ 10 Bn by 2030. • Key Markets & Rollout: • Priority Markets: Initial PR/digital push in Australia (leading in August), UK, Germany, India, China, and Russia. • Future Expansion: France, Italy, Middle East, Japan, and South Korea, among others. • Strategy & Experience: • Shift from observational to experiential travel (focusing on length of stay, spending, and regional dispersal into the East, North, and Uva). • Core experiences: Leisure, culture, wellness, adventure, MICE, and niche sectors like Ayurveda and marine tourism. • Partnerships & Innovation: • Airline partnerships signed with Emirates; ongoing talks with IndiGo, Turkish Airlines, and Qatar Airways. • Digital expansion with LankaPay for local spending, an AI-enabled travel platform, and tech integrations with Meta, Google, and TikTok.

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Politics & Government Impact

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🇱🇰 Sri Lanka Will Not Allow Ethnic or Religious Conflicts to Emerge: President

• Key Statement: President Anura Kumara Dissanayake affirmed the Government’s strong commitment to establishing a peaceful and compassionate society across Sri Lanka. • Policy Stance: The administration will explicitly prevent the recurrence of any ethnic or religious friction in the country to maintain national stability.

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🇱🇰 Sri Lanka Labour Market Mismatch & Policy Choices 📊

A recent debate over raising the minimum age for three-wheeler drivers highlights deeper issues in Sri Lanka's labour market, emphasizing incentives over restrictions. • Labour Market Stats (Q1 2026): - Overall Unemployment: 3.7% - Labour Force Participation: 49.2% - Youth Unemployment (Ages 15–24): 16.1% - Unemployment (Ages 25–29): 11.8% - Educated Unemployment (A me/A/L+): 6.5% • Key Insights: - Drivers prefer three-wheelers for income, flexibility, and independence over factory or construction jobs. - IPS research highlights that driving occupation choices must be respected; sectors facing vacancies in manufacturing or construction need to improve wages and working conditions to attract youth. - Structural economic reform requires transparent policy, evidence-based trade-offs, and addressing low productivity rather than limiting occupational freedom.

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⚖️ BASL Raises "Gratification" & Conflict-of-Interest Concerns Over 22nd Amendment

The Bar Association of Sri Lanka (BASL) has challenged the constitutionality of the proposed 22nd Amendment in the Supreme Court, questioning whether extending the tenure of sitting superior court judges could constitute a "gratification" under Anti-Corruption Act No. 9 of 2023. • Core Legal Concerns: • Anti-Corruption Law: Under Section 93(b), judges soliciting or accepting any gratification as an inducement or reward face fines up to Rs. 1 Mn and up to 7 years of rigorous imprisonment. BASL highlights public perception risks regarding whether the extension and associated benefits act as a gratification. • Conflict of Interest: Sitting Supreme Court judges determining the Bill's constitutionality would directly benefit from the proposed tenure extension. • Judicial Independence: BASL argues the Bill impacts the sovereignty of the people and judicial independence, seeking a ruling that it requires approval via a public referendum. • Key Provisions of Proposed 22nd Amendment: • Supreme Court: Increases retirement age from 65 to 67 years. • Court of Appeal: Increases retirement age from 63 to 65 years, and expands bench size from 19 to 24 judges (+5 additional judges). • Chief Justice: Retirement set at age 67 or upon completing 6 years in office, whichever comes first. • Action Requested: BASL has requested the Chief Justice to constitute a Full Bench of all sitting Supreme Court judges to hear the petition due to the urgent and grave constitutional implications involved.

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🤝 New US Ambassador Eric Meyer Presents Credentials to President Dissanayake

• Diplomatic Formalities: Eric Meyer officially assumed his duties as the 29th US Ambassador to Sri Lanka after presenting his credentials to President Anura Kumara Dissanayake. He arrived in Colombo on August 22. • Key Focus Areas: The partnership marks over 78 years of bilateral ties. Priorities include unlocking new economic opportunities, expanding trade & investment, deepening security cooperation, and supporting a free and prosperous Indo-Pacific region. • Background: Prior to this posting, Ambassador Meyer served as Chargé d’Affaires, a.i., at the US Mission to Norway and Senior Bureau Official for South and Central Asian Affairs at the US Department of State.

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📊 Sri Lanka Ministerial Portfolio Changes Drop ~75% Under President AKD

Government institutional instability caused by frequent cabinet reshuffles fell significantly during the first year of President Anura Kumara Dissanayake’s tenure compared to his immediate predecessors, according to data from the Lanka Data Foundation. • Overall Figures (First-Year Cabinet Reshuffles) • Anura Kumara Dissanayake (Nov 2024–Nov 2025): 37 government departments experienced ministerial changes. • Ranil Wickremesinghe (July 2022–July 2023): 91 departments experienced ministerial changes. • Gotabaya Rajapaksa (Aug 2020–Aug 2021): 90 departments experienced ministerial changes. • Key Institutional Shifts & Volatility • Highest Instability: Under Gotabaya Rajapaksa, 40 departments had three different ministers within year one, while 3 departments changed hands four times. • Major Portfolio Reorientations: • Under Ranil Wickremesinghe, 22 departments broke away from the manufacturing & industrial domain (Ministry of Industries) into two state ministries in July 2022. • Under Gotabaya Rajapaksa, the largest single realignment involved 18 departments under the State Minister of National Security, Home Affairs and Disaster Management. • Under Anura Kumara Dissanayake, the largest shift involved 19 departments moving from the Minister of infrastructure & housing (Urban Development, Construction and Housing) to the Minister of Ports and Civil Aviation. • Context: Analysis compares the first year of each administration following parliamentary consolidation, highlighting increased governance stability and reduced administrative churn in state operations.

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📉 High Cigarette Tax Strategy Facing Limits Amid Illicit Market Growth

• Global & Regional Benchmarks: The World Health Organization (WHO) target of a 75% tax share on retail price is met by only 39 out of 190+ countries globally—22 of which are high-income economies, with zero representation in South Asia. • Sri Lanka Market Context: Despite excise taxes on legal cigarettes rising by over +100% in the last 5 years, revenue has not grown proportionally. High taxes risk shifting demand to illicit untaxed products or lightly taxed domestic alternatives like beedi, impacting state receipts and public health goals. • European Comparison: Excessive tax burdens are creating market distortions across the EU, where over 10% (~42 billion sticks) of consumed cigarettes are illicit, causing €16.7+ Bn in annual tax revenue losses. In high-tax countries like Ireland and France, non-domestic legal purchases account for over one-third of total consumption.

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🌾 Sajith Questions Rice Imports Amid Domestic Surplus Claims

Opposition Leader Sajith Premadasa has criticized the Government's decision to import rice despite an estimated domestic surplus, while highlighting shortfalls in guaranteed paddy prices for local farmers. Key details from the statement include: • Paddy Pricing Deficit: The Agriculture Minister estimated the production cost at ~Rs. 137/kg against a guaranteed price of Rs. 120/kg, creating a Rs. 17/kg shortfall for farmers. The promised Rs. 150/kg legal guaranteed price remains unfulfilled. • Import vs. Production: National production reached ~3.2 Mn MT against an annual consumption requirement of ~2.5 Mn MT. Despite the surplus, ~382,000 MT of rice was imported. • Millers & Market Access: Premadasa questioned the impact of the Rs. 7.5 Bn allocated to strengthen small- and medium-scale rice millers, noting farmers still struggle to sell their harvest.

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🌾 Sri Lanka’s Agriculture Sector Needs Shift from Subsidies to Competitiveness

• Current State: Sri Lanka has achieved a rice surplus through 90 years of heavily subsidised policy, including nearly Rs. 40 Bn spent on fertiliser support for the 2025/26 Maha season alongside free/subsidised irrigation schemes. • Core Challenges: - Subsidies and state interventions have created an uncompetitive sector, leaving consumers facing high food prices due to import restrictions. - Farmers lack incentives to experiment with high-value crops, adopt new technology, or improve soil health and productivity. - Heavy concentration on rice limits international competitiveness against larger commercial global producers. • Policy Recommendations: - Reallocate public funds from permanent production subsidies to R&D, extension services, irrigation efficiency, storage, rural roads, and tech adoption. - Shift focus to high-value, sustainable crops suitable for both domestic consumption and export markets. - Provide targeted, temporary support to help farmers transition to viable crops without compromising food security.

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Cabinet Approves Urgent Rs. 250 Mn Reconstruction for NIFS Hanthana 🏛️

• Project Overview: The Cabinet of Ministers approved transferring responsibility for planning, geotechnical assessments, and procurement management for the urgent reconstruction of the National Institute of Fundamental Studies (NIFS) premises in Hanthana, Kandy, to the National Building Research Organisation (NBRO) on a direct contract basis. • Financial & Structural Details: • Estimated Cost: ~Rs. 250 million. • Scope of Work: Construction of a protective embankment and slope-stabilisation measures to safeguard laboratory facilities and neighboring properties. • Background & Impact: • Cause: Severe landslide damage caused by heavy rainfall from Cyclone Ditwah in November 2025. • Risk: Posed structural stability risks to the main laboratory complex of NIFS and safety hazards to nearby residents. • National Relevance: NIFS (est. 1981) is Sri Lanka's premier state institution for basic scientific research and scientific human capital development.

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🚨 President Orders Accelerated Rollout of Rs. 102 Bn Provincial Ditwah Projects

President Anura Kumara Dissanayake has directed officials to fast-track development projects executed by Provincial Councils using Rs. 102 billion from the Government's Rs. 500 billion provision allocated for the Ditwah disaster response. • Overall Progress & Planning: • Currently, 30,923 development projects are underway across the provinces. • All project planning for the 2027 Budget must be finalized by November to begin implementation on schedule next year. • Key Sector Highlights: • Irrigation: Department of Agrarian Development, Irrigation Department, and provincial programs will be integrated into a single national plan. Small and medium-sized tanks will see capacity expansions and expedited rehabilitation between the Yala and Maha seasons to prepare for changing El Niño conditions. • Education: Individual assessments will be conducted for schools with fewer than 50 students before deciding on consolidation; transport facilities or allowances will be provided as needed. • Agriculture, Livestock, & Health: Development projects across these key sectors are being reviewed under a unified policy framework to prevent duplication and cut unnecessary expenditure. • Technical Workforce: An expedited recruitment and training initiative will address the shortage of technical officers across Provincial Councils. • Financial Management: • Strict financial discipline enforced for 2027 budget preparations. • Projects funded through foreign loans and assistance must be completed on schedule to guarantee intended economic benefits.

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📊 Govt. Maintains Rs. 60m VAT Threshold to Protect SMEs

• Overall Decision: The Government confirmed no decision has been taken to re-implement the proposed lowering of the annual Value Added Tax (VAT) registration threshold from Rs. 60 million to Rs. 36 million. • Background & Impact: The proposed reduction, introduced in the 2026 Budget, aimed to expand the tax base by adding roughly 10,000 additional businesses to the VAT net. However, it was withdrawn in June to avoid placing further financial strain on SMEs recovering from Cyclone Ditwah and Middle East conflict impacts. • Tax Base Breakdown (as of 30 June 2026): • Total VAT-Registered Taxpayers: 36,656 (excluding 371 registered for financial services). • Registered Corporate Taxpayers: 139,000. • Key Debate: Opposition MP Ravi Karunanayake raised concerns at the Committee on Public Finance (CoPF), arguing that shelving the lower threshold delays essential tax base broadening and keeps the revenue burden concentrated on existing taxpayers.

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Govt. Steps Up Preparations for El Niño Dry Weather Threat 📈

The Sri Lankan government has initiated proactive measures to address the severe dry weather forecasted by the Department of Meteorology for February, March, and April 2027. President Anura Kumara Dissanayake reviewed mitigation plans at a Special Cabinet Sub-Committee meeting to minimize economic and livelihood disruptions. • Forecast & Outlook: Department of Meteorology predicts severe dry weather across all provinces during Feb–Apr 2027. • Agriculture: Ensure seed paddy and fertilizer availability for the upcoming Maha season. Instructed farmers to utilize expected October rain for field preparation rather than relying on reservoir releases. Irrigation rehabilitation is being expedited. • Energy & Utilities: Establishing water-management protocols and identifying vulnerable zones for restricted water usage. Strategic power generation reserves will be maintained above normal requirements to offset low hydropower capacity caused by depleted reservoirs. • Plantations & Fisheries: Directives issued to implement safety nets for plantation industries and support measures for affected freshwater fisheries communities. • Food Security: Coordinated disaster response to maintain an uninterrupted supply of essential food items and public utilities.

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Sustainability, ESG & Corporate Responsibility

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🙏 CBL Samaposha Marks Over Two Decades of Community Support at Kandy Esala Perahera

CBL Samaposha, a leading brand under Plenty Foods / CBL Group in Sri Lanka's FMCG and agriculture processing sectors, has extended its long-standing community wellbeing initiative at the Kandy Esala Perahera for 2026, marking over 20 years of involvement since 2003. • Initiative Scale: CBL Samaposha is distributing 20,000 CBL Samaposha Aggala packs daily over the 5-day Randoli Perahera, reaching a total of 100,000 packs for pilgrims around the Sri Dalada Maligawa precinct. • Performer & Staff Support: An additional ~2,000 Aggala packs per day will be distributed via the four Devalayas to support traditional dancers, performers, and event staff. • Public-Private Partnership: Conducted in collaboration with the Kandy District Secretariat since 2010, ensuring structured and responsible delivery to thousands of attendees. • Economic & Social Context: Demonstrates sustained corporate social responsibility (CSR) and investment in community nutrition within Sri Lanka's vital food manufacturing and cultural tourism landscape.

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📈 Link Natural & Sri Dalada Maligawa Launch Health Initiative for Kandy Esala Perahera Performers

Link Natural, through its brand Samahan, partnered with the Media and Special Projects Bureau of the Sri Dalada Maligawa to launch the "Samahan Arakshawe Pelahera" health and wellness initiative. • Target Audience: Supporting over 1,000 traditional performers, including dancers, drummers, torchbearers, and elephant handlers, during the 10-day Kandy Esala Perahera festival. • Services Provided: Designated wellness stations serve hot Samahan drinks before and after performances to counter physical exertion, humid weather, and open-flame heat. • Medical & Relief Support: Volunteers and medical personnel from the Sri Lanka Red Cross Society provide health guidance and first-aid assistance. • Product Assistance: Link Natural provided MuscleGuard and CrampGuard topical products to assist performers with muscle fatigue and exertion.

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📈 Parliamentary Roundtable Advances Talks on Financing Sri Lanka's Care Economy

• Key Challenge & Economic Impact: Unpaid care responsibilities exclude nearly 75% of working-age women from Sri Lanka's labor force. According to the ILO, every $ 1 invested in the local care sector generates a return of US$ 7.76, making care economy investment a key economic growth driver. • High-Level Initiative: The Women's Parliamentary Caucus (WPC) and Westminster Foundation for Democracy (WFD) convened Prime Minister Dr. Harini Amarasuriya, Speaker Dr. Jagath Wickramaratne, and Minister Saroja Paulraj to embed gender-responsive budgeting into national fiscal allocations. • Strategic Focus Areas: • Direct investment in care infrastructure, early childhood development, eldercare, and social protection mechanisms. • Legislative reforms for workplace protections and fair work standards. • Integration of the care economy into national economic policy and accounting framework. • Civil Society & Policy Recommendations: Fund regular time-use surveys to quantify unpaid care, institutionalize funding for assistive devices, launch pilot after-school programs for low-income schools, and scale up nationwide eldercare center pilots.

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🌱 Shift from Compliance to Brand Equity Needed for Sri Lankan Businesses

Sri Lankan companies are being urged to move beyond mandatory sustainability reporting under SLFRS S1 and S2 and leverage Environmental, Social, and Governance (ESG) strategies to build brand value and stakeholder trust. • Strategic Alignment: Organizations are encouraged to view ESG not just as a regulatory disclosure exercise, but as a core business strategy to drive brand equity, employer branding, and long-term competitive advantage. • Communication Gap: Considerable resources are currently invested in sustainability, but efforts often end at report publication without authentic public and stakeholder engagement. • Stakeholder Demands: Modern investors, customers, and partners look beyond financial metrics to evaluate how companies manage social and environmental risks. • Capacity Building: Industry discussions, including the recent "From Compliance to Brand Equity" workshop by FireCircle by G, highlight a growing demand among finance, marketing, and leadership professionals to integrate ESG performance into corporate brand strategy.

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Allianz Lanka Drives Women’s Leadership via WIL Branch Engagement 2026 📈

• Event Focus: Allianz Lanka’s Women in Leadership (WIL) Employee Resource Group hosted its third consecutive branch engagement program themed _"Lead. Inspire. Empower."_ to support female career development and corporate leadership. • Participation: Gathered over 35 female employees from Colombo and Western Zone branches for professional networking and skill building. • Key Insights: Guest speaker Manori Unambuwe (Founder/CEO of Accentae Consulting, VP at IronOne Technologies, ex-Ambassador) shared guidance on resilience and career progression drawing from over 20 years in global tech leadership. • Skill Building: Charitha Bandara (Head of Sales Learning Academy) delivered interactive training on personal and professional growth strategies. • Corporate Context: Allianz Insurance Lanka Ltd is a subsidiary of Munich-based global insurance & asset management leader Allianz SE.

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🚨 Sri Lanka Mobilizes Youth Network for Early Disaster Preparedness

To shift focus from crisis relief to early disaster preparedness, over 100 Sri Lankan youth leaders participated in a national simulation exercise, The Resilience Lab: Local Youth Action in Crisis Response, held in Maharagama to mark International Youth Day. Organized by the UNFPA, National Youth Services Council (NYSC), and Youth Affairs Ministry, the program aimed to empower young leaders as first responders and active communicators before emergencies strike. National Context & Capacity: • According to 2024 Census data, Sri Lanka’s youth population (aged 15–29) stands at ~4.78 million (approx. 22% of total population). • The government holds a widespread network of around 14,000 Youth Clubs under NYSC, reaching over 280,000 young people nationwide. • Focus is on community-level mobilization, early warnings, and inclusive response targeting vulnerable groups (elderly, disabled, pregnant women). Crisis Impact & Key Priorities: • Highlights lessons learned from recent events like Cyclone Ditwah, which affected 2.2 million people, caused over 600 deaths, and damaged nearly 115,000 homes. • Integrates critical social aspects into emergency scenarios, including sexual and reproductive health, gender considerations, and protection. • Executed with technical support from the Disaster Management Centre, Sri Lanka Red Cross Society, and Family Planning Association of Sri Lanka.

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📉 Sri Lanka's Apparel Sector Advances Disability Inclusion via "Inclusive Threads" Pledge

• Key Initiative: 13 leading apparel companies signed a voluntary pledge under the "Inclusive Threads" initiative—a joint effort by the International Labour Organization (ILO), International Finance Corporation (IFC), and Joint Apparel Association Forum (JAAF), supported by the Australian Government. • Core Commitments: Signatories pledged to adhere to 8 core principles focused on protecting rights, preventing discrimination, ensuring reasonable workplace accommodations, and promoting equal employment opportunities for persons with disabilities in the apparel & textiles sector. • Economic & Social Impact: - Shifts disability inclusion from a welfare perspective to an economic empowerment model. - Reached 17,000+ households through community outreach. - Modernized training at 3 state vocational institutes and provided sign language training to over 140 industry personnel. - Facilitated factory-based internships and 12 formal job placements through district-level job fairs. • Participating Companies: Brandix, Hirdaramani, Filotex Lanka, Inqube Global, Maliban Wovens, Martex M F G, Miami Clothing, Original Apparel, Q Collection, Sumithra Garments, Sun Queen Apparel, Vogue Tex, and Winterquilts.

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📈 ADB & Govt Launch SUWERP for Highland Watershed Protection

• Key Initiatives & Framework • Asian Development Bank (ADB) and Government advance Sri Lanka Upper Watershed Ecological Restoration Program (SUWERP). • Establishes Upper Watershed Management Authority (UWMA) following Cabinet approval in June 2026. • Launches Climate Action and Nature Positive Investment (CANOPI) Fund for long-term capital. • Environmental Assessment & Drivers • Major threats identified: severe soil erosion, degraded water quality, and pesticide contamination. • Tea plantations and vegetable plots generate average topsoil loss of 1.2 tons/ha annually; unmanaged bare lands suffer highest erosion. • Highest erosion concentrated in Welimada–Nuwara Eliya hotspot; river flow peaks in December. • Water testing across 21 locations breached safe drinking limits at 13 sites due to high aluminum, iron, and chemical pesticides. • Economic Proposals & Funding Models • Proposed 1% levy on energy and water sectors could raise ~Rs 23 Bn annually. • Reinvesting Rs 9 Bn can employ 10,000 workers at Rs 75,000/month for restoration. • Incorporates 20 Regional Plantation Companies (RPCs) to leverage workforce and management capacity. • Uses Payments for Ecosystem Services (PES) and shadow pricing to lower Rantambe Reservoir siltation by 3x to 5x.

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📈 HSBC Scales Up Beira Lake Clean Waterways Program

HSBC Sri Lanka expanded its Clean Waterways public-private partnership with the Beira Lake Restoration Task Force to drive community action and foster a blue-green economy. • First Phase Impact: The initial solar-powered boat retrieved over 21 tonnes of wet garbage and floating debris from 'Maha Beira Lake' during its first 7 months. • Operational Expansion: Introduced a second zero-emission, solar-powered waste collection boat in 'Kuda Beira' (near Gangaramaya Temple) to intercept debris at source and expand daily collection capacity. • Nature Literacy Component: Partnered with A-PAD SL to train 25+ university students via a 'Youth Guardians model', target 1M+ people through awareness drives, achieve 2M+ media reach, and monitor water quality and waste reduction. • Green Enterprise & Youth Empowerment: Partnered with British Council to deliver skill-building and financial literacy using the Inclusive Economic Empowerment framework: • 500+ youth reached via outreach. • 250 youth completing core skills, financial literacy, and career counselling. • 60+ youth directed to green enterprise pathways. • 140+ youth prepared for job-readiness in the blue-green economy.

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Govt Steps Up Actions Over Forced Labour Risks in Southern Tea Sector ⚠️

• Overview: The Labour Ministry told the Committee on Public Finance (CoPF) that awareness and enforcement measures have been launched to address forced labour risks in the Southern Province's tea smallholder sector. • Background: Action follows an Amnesty International report highlighting forced labour concerns. Under Sri Lanka’s Penal Code, forced labour is a criminal offence. • Capacity Building: Supported by the ILO, the initiative trained 30 master trainers, who subsequently trained ~250 officials from the Police, Department of Labour, and Foreign Affairs Ministry. • Key Risk Indicators: Practices identified include withholding certificates/IDs, delayed or partial wage payments, and restricting job mobility—creating conditions where workers feel trapped to recover unpaid wages. • Market & Trade Impact: Officials emphasized supply-chain compliance to safeguard export access, particularly to the US. Labor-intensive agricultural sectors like tea face higher scrutiny compared to automated manufacturing like apparel & textiles. • Mechanism: Government is institutionalizing customs enforcement and export/import declaration verification under the Director General of Commerce to satisfy international compliance standards.

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🌿 Biodiversity Action Forum 2026: Driving Sri Lanka's Nature-Positive Economy

Biodiversity Sri Lanka will host the Biodiversity Action Forum 2026 on August 25 at Shangri-La Colombo. Moving beyond technical sessions, the event aims to translate ecosystem health into a strategic business asset for long-term economic growth, supply chain resilience, and private sector competitiveness. • Strategic Focus & Key Highlights: - Positions biodiversity as a key driver for investment, productivity, and risk mitigation across agriculture, tourism, finance, manufacturing, and exports. - Keynote speeches by Dr. Saurabh Kumar (CII-ITC) and Rohan Pethiyagoda on integrating nature-positive strategies into corporate governance. • Three Core Business Conversations: - The Next Wave of Blue Growth: Harnessing marine resources through sustainable investments, blue finance, and coastal resource management. - Safeguarding the Central Highlands: Protecting montane ecosystems as critical national infrastructure, featuring leaders from plantation management (Hayleys Plantations) and ADB. - Investing, Disclosing & Competing: ESG reporting, nature-positive finance, and corporate governance with insights from the Central Bank of Sri Lanka, KPMG, and Talawakelle Tea Estates PLC. • Actionable Outcomes: - Formulating the Biodiversity Action Agenda 2026 in partnership with Verité Research to establish measurable, joint private-sector initiatives over the next 12 months. - Sponsored by major economic players including Dilmah Ceylon Tea, Hatton National Bank, Cleantech, CDB Finance, DIMO, and Hayleys Plantations.

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🏨 Browns Hotels & Resorts Launches Free Learning Academy to Boost Tourism Workforce

Browns Hotels and Resorts (BHR) has launched the Browns Hotels and Resorts Learning Academy at The Eden Beruwala to address skill shortages and upskill youth in the tourism & hospitality sector. • Program Overview: The academy debuted on 14 August 2026 with an inaugural 60-day (360-hour) TVEC-approved NVQ Level 03 – Hotel Operation Multitasker Programme. • Target & Investment: Offered at no cost to selected local youth, combining structured classroom learning with practical exposure at BHR's flagship 5-star property. • Career Pathways: Successful graduates gain opportunities for employment consideration across BHR’s 15 hotel properties nationwide, driving regional youth employment and capacity building for Sri Lanka's growing tourism industry.

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Market News

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📉 Global Crude Drops $2+ on Iran-Oman Hormuz Talks: Local Economy Impact

• Market Benchmarks: Brent crude fell $2.30 (-2.6%) to US$ 86.28/bbl, while WTI dropped $2.08 (-2.53%) to US$ 80.29/bbl. Both hit multi-week lows following news of Iran-Oman talks to establish a joint temporary navigational corridor and clear mines in the Strait of Hormuz. • Shipping & Supply: Traffic through the key energy bottleneck remains constrained, with Kpler data showing only 5 commodity vessels transited on Tuesday versus the 10-day average of 15. Meanwhile, US API crude stockpiles rose by ~4.2M barrels for the week ended Aug 21, well above expectations (+600K barrels). • National Context: Easing global oil prices offers direct relief to Sri Lanka's energy import costs. Key export sectors reliant on stable fuel prices—such as tea processing, apparel & textiles manufacturing, and freight logistics for export diversification—stand to benefit from lower production overheads, helping curb domestic inflation pressure.

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Strong Demand Drives Bullish Rs. 50 Bn T-Bond Auction 📈

• Primary Auction Results: The full Rs. 50 Bn offered was raised in competitive bidding with high demand (bid-to-accept ratio: 4.70x). - 01.08.30 Maturity: Weighted average yield at 10.54% (below 10.60%/10.65% pre-auction quotes). - 15.03.35 Maturity: Weighted average yield at 11.70% (vs. 11.65%/11.80% pre-auction market). - Direct Window: Open for an extra 10% across both maturities until Aug 31, 3:00 p.m. • Secondary Bond Market: Staged a rally with aggressive buying, pulling yields down across maturities: - 15.09.29 & 15.10.29: Traded at 10.25% and 10.35%. - 01.08.30 & 15.10.30: Dropped to 10.50% and 10.60% intraday lows. - 01.02.31: Touched a low of 10.60% (down from 10.80% high). - 01.11.33: Traded at 11.35%. - 15.08.36 & 01.07.37: Closed lower at 11.85%-11.95% and 11.95%-11.98%. • Money Market Liquidity: Net liquidity surplus hit Rs. 182.87 Bn. CBSL absorbed liquidity via SDFR (Rs. 117.87 Bn at 8.25%) and overnight/term repo auctions totalling Rs. 125 Bn at weighted averages ranging from 8.74% to 9.18%. Call money and Repo averaged 8.84% and 8.88%. • Forex Market: Sri Lankan Rupee (LKR) appreciated against the US Dollar, closing at Rs. 328.45/328.60 per USD (vs. Rs. 329.00/329.10 previously) with a total volume of US$ 96.85 Mn traded.

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📉 CSE Ends Lower Amid Cautious Investor Sentiment

• Overall Indices: The Colombo bourse extended its losses for a second consecutive session. The All Share Price Index (ASPI) fell 0.31% (-65.12 points) to close at 21,279.65, while the S&P SL20 dropped 0.24% (-14.59 points) to 5,994.81. • Market Activity: Market sentiment remained subdued ahead of the mid-week break, with 121 decliners against 69 gainers. Total turnover reached nearly Rs. 797 million on a volume of over 27.2 million shares traded. • Foreign Flows: Foreign investors remained net sellers, recording a net outflow of over Rs. 4.1 million. • Sector & Stock Drivers: Persistent selling pressure outweighed initial gains, despite declining global oil prices. Top negative index contributors included CARG, DIAL, COMB, BREW, and CDB. The capital goods sector accounted for the highest turnover share at 19%, followed by the materials and banking sectors, which combined for 28%.

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📈 Sri Lanka T-Bill Yields Drop for 7th Straight Week

• Auction Results: Public Debt Management Office raised the full Rs. 120 Bn offered. Total bids reached 2.86x the offer, reflecting strong investor demand. • Yield Movements: • 91-day: 9.06% (down 16 bps) • 182-day: 9.44% (down 16 bps) • 364-day: 9.89% (down 2 bps) • Bond Market: Secondary yields held steady ahead of today's Rs. 50 Bn Treasury Bond auction (maturities in 2030 and 2035). • Liquidity & Forex: Net money market liquidity surplus stood at Rs. 123.21 Bn. The Sri Lankan Rupee appreciated slightly, with USD/LKR spot closing at Rs. 329.00/329.10 compared to Rs. 329.40/329.55 previously. Total traded volume reached US$ 89 Mn.

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📈 CSE Daily Turnover Surges Past Rs. 16 Bn via Massive Block Deals

• Market Highlights: The Colombo Stock Exchange (CSE) recorded a massive total turnover of Rs. 16.85 Bn today (Aug 24), reaching its highest single-day turnover since July 16, 2025 (Rs. 17.01 Bn). • Key Sector & Stock Drivers: • CT Holdings PLC: 20.14 Mn shares crossed at Rs. 575 per share, generating Rs. 11.58 Bn in turnover. The transaction represents the complete exit of Ranjit Page, the company's second-largest shareholder, who sold his entire ~10% stake. • Cargills (Ceylon) PLC: 6.00 Mn shares traded at Rs. 700 per share via crossings, generating Rs. 4.20 Bn in turnover. • Parent-subsidiary structure remains intact, with parent firm CT Holdings maintaining a 71.18% stake in Cargills (Ceylon).

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📈 Foreign Holdings in Rupee Treasuries Hit 8-Year High as Rupee Strengthens

• Treasury Holdings: Net foreign inflows reached Rs. 8.30 Bn for the week ending Aug 20, marking 11 consecutive weeks of foreign buying. Total foreign holdings of rupee Treasuries rose to Rs. 202.51 Bn, the highest level since November 2018. • Currency Market: The Sri Lankan Rupee appreciated to below Rs. 330/$ for the first time in over 12 weeks, closing at Rs. 329.40/329.50 against the USD (up from Rs. 332.80/332.90 the previous week). Average daily USD/LKR traded volume stood at $ 109.51 Mn. • Government Bond Market: Secondary market yields showed a downward bias across most tenors due to sustained buying interest: - Short-to-Medium Tenors: 2028 tenors traded around 10.00%-10.05%, while late 2029 maturities eased down to 10.50%-10.55%. 2030 maturities showed mixed trading within 10.70%-10.90%. - Long-Term Tenors: Stronger rally seen in longer bonds, with 2032 maturities falling to 11.20%-11.25%, 2033 to 11.30%-11.45%, 2036 down to 12.00%, and 2037 declining to 12.00%. • Treasury Bill Auction: Yields dropped for the 6th consecutive week across all tenors: - 91-day: 9.22% (-22 bps) - 182-day: 9.60% (-18 bps) - 364-day: 9.91% (-10 bps) — falling below 10.00% for the first time in 12 weeks. - Total accepted amount reached Rs. 154 Bn across primary and second-phase issuance amid strong market demand. • Money Market: Outstanding system liquidity remained high at Rs. 278.51 Bn. Weighted average Call Money and Repo rates settled at 8.81% and 8.86%, respectively.

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📈 CSE Ends Week-Long Bearish Run with Slight Turnaround

• Weekly Performance: The All Share Price Index (ASPI) declined by 1.0% (-206.6 points), while the S&P SL20 dropped 0.6% (-37.6 points) over the week. • Daily Close: Market ended on the up as ASPI rose 0.05% (+10.99 points) to close at 21,416.61, and S&P SL20 gained 0.15% (+8.84 points) to reach 6,028.09. • Turnover & Volume: Daily turnover exceeded Rs. 1.2 Bn, with over 50 million shares traded. • Market Sentiment: Overall investor engagement remained subdued. High-Net-Worth (HNW) activity was low, whereas retail participation was comparatively stronger at moderate levels. Foreign investors remained net sellers with a net outflow of Rs. 58.2 Mn. • Key Contributors: Top positive contributors were MELS, CDB, SIRA, HHL, and DIAL. • Sector Breakdown: • Capital Goods: Dominated trading, accounting for 39% of total turnover. • Materials & Banking: Combined contribution of 27% to total turnover.

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📈 Sri Lankan Bond Yields Edge Lower Amid Strong Buying Demand

• Market Performance: Yields declined across the financial services and debt market, driven by persistent buying interest concentrated in the belly to long end of the yield curve. Volume remained healthy backed by large-volume buyers. • Yield Highlights: - 2028 maturity: 9.20% – 10.15% - 2030 maturities: 10.75% – 10.90% - 2032–2034 maturities: 11.20% – 11.75% - 2036–2037 maturities: 12.00% – 12.11% • Upcoming Treasury Bond Auction: CBSL announced a Rs. 50.00 Bn auction scheduled for August 25: - Rs. 30.00 Bn via 01.08.2030 maturity (10.00% coupon) - Rs. 20.00 Bn via 15.03.2035 maturity (11.50% coupon) • Liquidity & Money Market: Net liquidity surplus stood at Rs. 130.25 Bn. Central Bank mopped up liquidity via repo auctions, including Rs. 38.80 Bn overnight repo (8.75% weighted average yield) and term repos totaling Rs. 30.00 Bn. • Foreign Exchange: The Sri Lankan Rupee (LKR) appreciated to closing rates of LKR 330.15/330.25 against the USD (from LKR 331.05/331.15). Daily spot forex volume reached US$ 134.30 Mn.

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📉 CSE Dips After Early Rally to Extend Losses

• Overall Figures: Benchmark ASPI dropped marginally by 0.05% (-10.95 pts) to 21,405.62, while the active S&P SL20 fell 0.02% (-1.13 pts) to 6,019.25, marking a 4th straight loss session. Total turnover reached over Rs. 1.5 Bn across 40.8 Mn shares traded, with foreign investors recording a net outflow of Rs. 24.8 Mn. • Sector Breakdowns: The banking sector led turnover contributing 33%, with its sector index rising 0.19%. The capital goods and insurance sectors collectively accounted for 26% of turnover, though capital goods dipped by 0.03%. • Key Market Drivers: Market gains were weighed down by SAMP, BREW, BUKI, JKH, and CDB, offsetting positive support from MELS, SPEN, DIAL, CFIN, and HARI. Early momentum driven by declining T-Bill auction yields faded by mid-session due to low participation from retail and HNW investors. Heavy institutional and HNW interest centered on Seylan Bank, JKH, and Pan Asia Bank.

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📉 Sri Lanka T-Bill Yields Plunge as 1-Year Rate Drops Below 10%

• Auction Results: Yields fell for the 6th consecutive week, reaching 13-week lows. - 91-Day: 9.22% (down 22 bps) - 182-Day: 9.60% (down 18 bps) - 364-Day: 9.91% (down 10 bps, dipping below 10% for the first time in 12 weeks) • Demand & Liquidity: Total offer of Rs. 140 Bn fully raised amidst heavy oversubscription (bids at 2.67x offer). Money market liquidity surplus remained high at Rs. 168.98 Bn. • Bonds & Forex: Secondary market bond yields edged lower on select maturities. The Sri Lankan Rupee strengthened to Rs. 331.05/331.15 against the USD.

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📉 CSE Extends Loss into 3rd Straight Session Amid Middle East Tensions

• Market Performance & Indices • The ASPI dropped 0.29% (-62.50 pts) to close at 21,416.57. • The active S&P SL20 fell 0.34% (-20.53 pts) to 6,020.38. • Market turnover exceeded Rs. 1.5 Bn on over 43.8 million shares traded. • Rising oil prices and unresolved US-Iran tensions drove investor caution, though foreign investors posted a net inflow of Rs. 103.2 Mn. • Sector Breakdown • Food, Beverage & Tobacco: Top turnover contributor at 30%; sector index gained 0.52% (led by Sunshine Holdings, down Rs. 0.20 to Rs. 29.60). • Banking Sector: Second largest contributor; sector index fell 0.26% (led by Seylan Bank, down Rs. 0.10 to Rs. 98.80). • Capital Goods: Combined with banking to account for a total of 42% of turnover. • Top Movers & Key Drivers • Main negative contributors to the index: SAMP, BREW, CFIN, BUKI, and DIAL. • Central Finance, Dialog Axiata (-Rs. 0.50 to Rs. 46.50), and LOLC Holdings weighed down indices. • Seylan Bank, Hemas Holdings (+Rs. 0.10 to Rs. 31.50), and Sunshine Holdings saw High Net Worth (HNW) and institutional interest. • Retail interest was active in HNB Finance, Asia Asset Finance Rights, and Asia Siyaka Commodities.

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📈 Sri Lanka Market Update: Bond Yields Steady Ahead of Rs. 140 Bn T-Bill Auction as Rupee Appreciates

• Secondary Bond Market: Yields saw intraday upward pressure due to profit-taking and rising global oil prices, but renewed buying support brought rates back down to close broadly steady amid moderate trading volumes. • Bond Yield Movements: • 15.10.30 maturity: High of 10.85%, closing lower at 10.75%. • 01.02.31 maturity: High of 11.00%, closing lower at 10.95%. • 15.12.32 maturity: High of 11.40%, closing lower at 11.35%. • Long-end maturities (15.08.36 & 01.07.37) traded down to 12.05% and 12.12%, respectively. • T-Bill Auction Focus: Rs. 140 Bn on offer today across 91-day (Rs. 55 Bn), 182-day (Rs. 45 Bn), and 364-day (Rs. 40 Bn) tenors, exceeding maturing debt of Rs. 123.31 Bn. Follows last week's sharp decline in weighted averages (91-day down 33 bps to 9.44%). • Money Market Liquidity: Net surplus stood at Rs. 142.85 Bn. CBSL absorbed funds via Standing Deposit Facility (Rs. 98.45 Bn at 8.25%), overnight repo (Rs. 44.40 Bn at 8.75%), and term repo (Rs. 20 Bn at 8.99%). Overnight call money and repo weighted average rates held at 8.79% and 8.83%. • Forex Market: The Sri Lankan Rupee steadily appreciated, with USD/LKR spot closing at Rs. 331.90/332.00 (vs Rs. 332.00/332.20 previously). Daily traded volume reached $ 103.30 Mn.

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Industry & Sector News

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📈 Sri Lanka Launches Inaugural FinTech Festival 2026 to Boost Digital Finance

Sri Lanka has officially announced the inaugural Sri Lanka FinTech Festival 2026, organized by the FinTech Forum Sri Lanka alongside the Ministry of Digital Economy. The landmark event aims to strengthen the country's position in regional digital finance and connect local ecosystems with global markets. • Event Details & Dates: Scheduled for 2nd–3rd November 2026 at Shangri-La Colombo. Official portal launched at www.fintechfestival.lk. • Program Highlights: • 2nd Nov: Exclusive CEOs Night for high-level dialogue among government, banking, and tech leaders. • 3rd Nov: Sri Lanka FinTech Expo featuring keynotes and panel discussions, followed by FinTech Night for networking. • Key Focus Areas: AI in finance, digital public infrastructure, tokenisation, cross-border payments, digital identity, cybersecurity, and financial inclusion for SMEs and tourism. • Economic Context: Drives national digital transformation, fostering growth in fintech, banking, and ICT/BPM infrastructure to enhance cross-border trade and financial accessibility.

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🚢 Sri Lanka Eyes Colombo as Major Regional Cruise Tourism Hub

Sri Lanka is positioning Colombo to become a primary cruise tourism hub in the Indian Ocean, leveraging public-private partnerships to boost tourist arrivals, extend passenger stays, and drive wider economic benefits. • Strategic Focus & Port Expansion • Government and private sector exploring infrastructure upgrades via Sri Lanka Ports Authority (SLPA) to accommodate mega-cruise vessels (5,000–7,000 passengers). • Aiming to capture regional maritime traffic currently bypassing Colombo for neighboring destinations like the Maldives. • Public-Private Partnerships & Hospitality Integration • Discussions held between Foreign Minister Vijitha Herath, global cruise representatives, AHK Sri Lanka, and local industry leaders. • Partnerships underway with hospitality & travel operators (including Cinnamon Hotels Group) to design integrated packages targeting high-spending passengers. • Economic Impact & Diversification • Shift in focus from brief port stops to longer stays to spread revenue to local transport, tour guides, travel agencies, and regional businesses. • Aligns with broader tourism recovery strategies to expand high-value revenue streams across the national value chain.

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📈 Sri Lanka Tea Exports Drop 4.9% Amid Middle East Disruption

• Overall Figures: Jan-Jul 2026 tea export volumes fell 4.9% YoY to 143.51 Mn/Kg. Export earnings declined by $67 million to $817 million compared to $884 million last year, driven by weaker dollar realisations and shipping route disruptions. • Volume & Pricing Trends: Total Jan-Jul average FOB value dropped in dollar terms to $5.70/kg (down $0.16), though local rupee values rose to Rs. 1,826.16/kg. July alone saw a steep 15% monthly volume contraction to 20.41 Mn/Kg. • Key Markets & Shifts: Türkiye surged 138% to 24.76 Mn/Kg, emerging as the top buyer, alongside growth in Russia (+2.6%) and Saudi Arabia (stable at 4.8 Mn/Kg). Steep drops hit Libya (-58%), UAE (-58%), Iraq (-36%), and Chile (-24%). • Category Breakdown: Instant tea was the sole category to register positive volume variance, while Green tea was the only segment with a positive dollar value variance during the seven-month period.

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🛢️ Sri Lanka Launches 'Licensing Round 2026' for Offshore Oil & Gas

• Key Assets & Scope: Sri Lanka offers 4 offshore exploration blocks covering ~34,000 sq. km in the Mannar Basin after over a decade. • Resource Estimates: Existing gas discoveries Dorado (314 bcf) and Barracuda (525 bcf) total an estimated 839 bcf (P50), with Barracuda showing 4x upside potential. • International Marketing Campaign: Partnered with UK-based Frontier Energy Network via PetroInvest to target global operators and senior decision-makers. • 1 Sept: Technical data room opens for prospective bidders. • 29–30 Sept: Pitching opportunity at World Energies Summit in London. • 21 Oct: Dedicated virtual investor briefing. • 16–17 Nov: Investor engagement in Kuala Lumpur. • Timeline & Outlook: Bidding closes in early 2027, with commercial production targeted by 2032 (subject to successful exploration and development). Deepwater technology advancements significantly improve feasibility compared to a decade ago.

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📈 Clicks vs. Cash: Marketing Shifts from Reach to Trust in 2026

Sri Lankan marketers face a critical shift as high digital visibility no longer guarantees sales. With nearly 60% of the population connected online, consumer skepticism is driving a "credibility crisis." The true marketing currency has transitioned from pure reach to consumer trust, authenticity, and long-term brand equity. • Demographic & Market Breakdown (Dept. of Census & Statistics Data) • Urban Segment: ~4.25 Bn/Mn (~18%-20% population, mostly Western Province). Avg. monthly household income at Rs. 116,670. Highly digitally engaged, preferring blended online/offline modern retail experiences. • Suburban Segment: 77% (16.8 Mn) of population. Avg. monthly household income at Rs. 73,398. Rapidly growing mobile presence; heavily relies on language accessibility and local cultural relevance. • Estate Sector: ~4.4% of population. Avg. monthly household income at Rs. 46,865. Focuses strictly on essential goods and value-driven purchasing. • Key Market Trends & Channels • Digital vs Traditional: While digital platforms enable data-driven targeting, traditional media (TV, radio, outdoor) retains strong authority and broader demographic reach. • Tech Integration: Rapid adoption of AI enables automated customer service, personalized recommendations, and content creation, benefiting both corporates and SMEs. • Consumer Drivers: Purchasing decisions are heavily influenced by user-generated content, peer reviews, and social validation—especially among Gen Z—over polished corporate ads. • Strategic Outlook To navigate rising incomes and evolving consumer behavior, Sri Lankan businesses must integrate AI efficiently while maintaining transparency, product quality, and genuine human engagement to convert digital clicks into cash flow.

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🤖 Media Planning: AI Optimizes Execution, Human Planners Retain Strategy 📈

Artificial Intelligence is rapidly reshaping the media planning landscape by accelerating data-heavy tasks, but human judgment remains irreplaceable for core strategy and brand building. • Automation Capabilities: AI reduces time on data collection, reach/frequency calculations, budget allocation, predictive forecasting, and standard reporting. It processes vast audience metrics to identify patterns and optimize campaigns faster than manual analysis. • Strategic Limitations: AI operates purely on available data without understanding brand context, cultural nuances, or long-term salience. It optimizes given parameters, but human planners must define the correct business objectives (e.g., market penetration vs. brand equity). • Human Role: Planners handle emotional relevance, local market nuances, brand creative fit, and decision accountability in uncertain conditions—areas unquantifiable by machine algorithms. • Industry Impact: Future competitiveness lies in a human-machine partnership. Planners utilizing AI tools to handle repetitive analytics will likely replace traditional professionals who resist technological integration.

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World Bank & Sri Lanka Advance Colombo Fort Tourism Zone Development 📈

• Project Focus: High-level talks held today between Chief of Staff to the President Prabath Chandrakeerthi and World Bank Country Manager Gevorg Sargsyan to advance the Colombo Fort Tourism Zone development using World Bank loan facilities and technical assistance. • Core Objective: Transform historic Colombo Fort into an attractive, heritage-preserved tourism zone, building on earlier directives from President Anura Kumara Dissanayake. • Expanded Scope: World Bank expressed readiness to support nature-based tourism and regional expansion into the Northern and Eastern provinces. • Broader Sectoral Support: Assistance pledged to help Sri Lanka meet national performance targets in agribusiness, ports & logistics, and energy.

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Sri Lanka Hosts PAQS Congress 2026 to Elevate Quantity Surveying Sector 📈

The Institute of Quantity Surveyors of Sri Lanka (IQSSL) is hosting the Pacific Association of Quantity Surveyors (PAQS) Congress 2026, marking only the second time Sri Lanka has hosted the regional event since 2011. • Regional Integration & Mobility: PAQS connects Asia-Pacific professionals and accredits degree programs in cost management, enabling global mobility for Sri Lankan graduates in key markets like Australia, New Zealand, Japan, and Hong Kong. • Technology & Human Intelligence: Under the theme _‘Constructing the Evolution: Unleashing Human Intelligence’_, the conference focuses on leveraging AI and tech tools to benefit the industry while reinforcing the necessity of human judgment, ethics, and professional wisdom. • Economic Impact & Governance: Quantity Surveying plays a critical role in managing public infrastructure spending, driving cost control, and ensuring accountability for every taxpayer rupee spent in the domestic economy. • Industry Reputation: Sri Lankan professionals maintain a strong international profile driven by technical expertise, adaptability, and high ethical standards across global commercial projects.

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📦 LANKAPAK 2026 Set to Drive Packaging Industry Growth in October 📈

The 27th edition of LANKAPAK, Sri Lanka’s premier international packaging exhibition, will take place from October 23–25, 2026, at the BMICH, Colombo. Organised by the Sri Lanka Institute of Packaging (SLIP) and CDC Events, the trade show aims to enhance export competitiveness and adoption of sustainable solutions. • Exhibition Scope: Over 160 stalls representing 80+ companies from Sri Lanka, China, India, Pakistan, Maldives, and other South Asian nations. • Key Sectors Featured: Covers packaging machinery, processing technologies, printing, plastics, paper, labelling, smart packaging, and circular materials. • Economic Context: Drives capacity building for local SMEs, manufacturers, and exporters, supporting national export ambitions by helping businesses meet global safety, quality, and circularity requirements. • Concurrent Initiatives: - SLIP Annual Packaging Congress 2026 (Oct 23–24): Focuses on the theme _"Rewriting Packaging in the New Global Economic Landscape"_. - Packaging Clinic: Technical advisory hub providing practical guidance on design, standards, and export readiness for SMEs. - Daily Tech Forum: Knowledge-sharing sessions covering emerging industry trends and material innovation. • Sponsorships: KWO Printing Needs Ltd. (Principal Sponsor), Polydime Plastics Ltd. (Platinum Sponsor), Petro Packaging Ltd. & Advanced Printing Technologies Ltd. (Gold Sponsors).

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🤖 Kaspersky Warns of Rising Cyber Threats Disguised as AI Services

At the Kaspersky APAC Cyber Security Weekend in Guangzhou, security experts highlighted growing risks as enterprises prioritize development speed over AI verification. • Threat Overview: Kaspersky identified 92,000 malicious attacks in 2026 disguised as popular AI platforms. Fake ChatGPT apps accounted for 49%, while Claude and Gemini each comprised 18%. • Agentic AI & Malware: Over 15,000 malware samples—including trojans, spyware, and backdoors—were found disguised as agentic AI software capable of stealing internal data. • Open-Source Supply Chain Risks: Cyberattackers are increasingly targeting open-source ecosystems like npm and PyPI. At least 10 major campaigns occurred since mid-2025, including a March 2026 attack on the widely used Axios library. • Enterprise Impact: 31% of enterprise businesses were affected by supply chain attacks last year, highlighting vulnerability in the ICT/BPM and software development pipeline. Additionally, an audit revealed over 250,000 potential CI/CD misconfigurations in GitHub Actions workflows. • Mitigation Strategies: Kaspersky urges organizations to harden development environments, establish clear trusted zones, and verify external code before execution to secure software creation without sacrificing productivity.

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National Essay Competition Launched to Boost Youth Financial Literacy 📝

The Insurance Regulatory Commission of Sri Lanka (IRCSL), in partnership with FALIA (Japan) and the Insurance Association of Sri Lanka (IASL), has announced the "Inspiring Young Minds: Securing Tomorrow" essay competition for school students across all 25 districts. • Key Initiative: Focuses on improving financial literacy and youth awareness surrounding life insurance, risk management, family financial protection, and long-term planning. • Eligibility: Open to government, private, and international school students in Sinhala, Tamil, and English. - _Junior Category_ (Ages 13–16; born Jan 1, 2010 – Dec 31, 2013) - _Senior Category_ (Ages 17–19; born Jan 1, 2007 – Dec 31, 2009) • Timeline & Structure: Registration closes on 30 September 2026. Free supervised examination scheduled for October 2026 (1.5-hour duration; answer 1 of 4 essay questions). • Prizes: - National Level: First Place Rs. 75,000 | Second Place Rs. 50,000 | Third Place Rs. 25,000 - District Level: 144 District Merit Awards valued at Rs. 5,000 each - E-certificates for all participants and printed certificates for award winners.

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📈 Sri Lanka-NZ Partner to Drive Applied Learning & Skilled Workforce

• Key Initiative: New Zealand and Sri Lankan education stakeholders, institutions, and policymakers will host the ‘Applied Learning and Industry Connect 2026’ event in Colombo on 24th August. The partnership aims to bridge skill gaps, drive workforce readiness, and support national economic transformation. • Strategic Focus: Shift global and local education toward applied learning—a model merging academic knowledge with hands-on industry experience and workplace exposure. • Sector Impact: Highlights potential growth and alignment in high-demand, knowledge-driven sectors including ICT/BPM, cybersecurity, and AI. Vocational education models aim to enhance practical technical capabilities and boost global employability for Sri Lankan graduates. • Economic Outlook: The bilateral collaboration focuses on strengthening links between domestic education systems and industry demand to support long-term economic growth and adaptability.

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Economic News

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📈 Sri Lanka Inflation Target Review: Case for Caution

• Framework Overview: Under the Central Bank of Sri Lanka (CBSL) Act of 2023, Sri Lanka set a 5% inflation target to be reviewed every three years, with the first review due in late 2026. • Inflation Dynamics: • Disinflation from 2023 led to temporary deflation (late 2024 to mid-2025). • Inflation recently surged from 2.2% in February 2026 to 7.3% in July 2026 due to global energy shocks and Middle East supply disruptions. • Key Sectors & Drivers: • EMDEs face higher volatility in food and energy prices, which carry larger weights in domestic consumption baskets. • Tradable sector export productivity gains can cause non-tradable price shifts via the Balassa-Samuelson effect (estimated at 1.7%–2.2% in comparable economies like India). • Arguments Against Lowering Target: • A sharp target reduction requires aggressive rate hikes, raising borrowing costs, impairing credit growth, and risking output loss (high sacrifice ratio). • Unfavorable geopolitical fragmentation and ongoing macroeconomic recovery limit room for drastic policy shifts. • Index & Target Design: • CBSL uses headline CCPI rather than core inflation to maintain public trust and clear communication. • Transitioning to NCPI is premature due to higher food weighting (39% vs. 26% in CCPI), longer publication lags (21 days), and a shorter data series starting only in 2014.

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Sri Lanka VAT Base Expands 56% in 2025, but Revenue Driver Remains Import-Heavy 📈

• Overall Figures: Net VAT revenue reached a record Rs. 1,746.9 Bn (+33.4% YoY) in 2025, becoming the single largest source of government revenue at 5.3% of GDP. Total VAT-registered entities rose 56.3% YoY to 33,187 (and reached 34,769 by Feb 2026), driven by the lowered registration threshold of Rs. 60 Mn per annum. • Yield Divergence: Average net VAT revenue per registered entity dropped from ~Rs. 61.7 Mn in 2024 to ~Rs. 52.6 Mn in 2025, showing that smaller newly added taxpayers contribute lower individual tax yields. • Sector Breakdown: • Imports: Main driver of growth, surging 49.2% YoY to Rs. 891.4 Bn (51.03% of total net VAT), largely boosted by the resumption of vehicle imports. • Financial Services: Standout performer, jumping 64.7% YoY to Rs. 198.2 Bn. • Manufacturing: Share of total VAT fell to 16.03% (from 18.24% in 2024). • Non-Manufacturing: Share dropped to 32.95% (from 36.14% in 2024). • Tax Mix & Compliance Gaps: Direct-to-indirect tax ratio further weakened from 40:60 in 2024 to 36:64 at the IRD level. Large Taxpayers achieved 92% return filing compliance within a month of due date, but non-LTO (SME) on-time filing stood at just 42% (55% within a month), highlighting persistent compliance challenges as the base expands.

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📈 Full Implementation of Economic Transformation Act Critical to Avert Forex Crisis

• Macroeconomic Challenge: Post-2022 recovery delivered single-digit inflation and primary budget surpluses under the IMF EFF. However, real GDP growth must reach 6%–7% to service restructured foreign debt once grace periods end. • Status Quo Limitations: Legacy administrative structures remain fragmented and sub-scale: - Merchandise exports are stuck at US$ 12–13 Bn annually, heavily reliant on low-complexity apparel & textiles and unrefined tea / rubber. - Net Foreign Direct Investment (FDI) rarely exceeds 1.5% of GDP. - The Board of Investment (BOI) historically deployed tax holidays for non-tradable sectors over export-linked manufacturing. - The Export Development Board (EDB) and Department of Commerce (DoC) lack statutory authority over border taxes managed by Customs. • Actionable Budget Priorities: 1. Capitalize new apex bodies like the Office for International Trade (OIT) and Economic Commission of Sri Lanka (ECSL) to hire specialized negotiators for trade pacts (ETCA, RCEP). 2. Create an earmarked Trade Adjustment Assistance (TAA) Matching Grant Fund (LKR 10–15 Bn) for SME factory automation, renewable energy, and ISO/ESG certifications. 3. Ring-fence capital expenditure for a digital Trade National Single Window (TNSW). 4. Replace blanket corporate tax holidays with performance-linked R&D and capex tax credits. 5. Tie overseas commercial diplomat budget allocations to verifiable economic KPIs. • Risk of Inaction: Relying on ad-hoc roadshows, seasonal tourism, and remittances risks locking GDP growth at 2.5%–3.5%, leaving the country vulnerable to future balance-of-payments traps when debt servicing scales up.

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📈 Sri Lanka Must Shift to FX Creation After 47 Deficit Years

Sri Lanka faces a structural external constraint, having recorded current-account deficits in 47 of the 51 years from 1975 to 2025 (surpluses occurred only in 1977, 2023, 2024, and 2025). • Current Account Reversal: Following a US$ 1.7 Bn surplus in 2025 (~1.6% of GDP), 1H 2026 recorded a US$ 245 Mn deficit, triggered by Middle East fuel cost hikes, vehicle import resumption, and lower services revenue. • Debt Servicing Burden: External debt service is estimated at ~US$ 5.1 Bn for 2025 and projected between US$ 3.9 Bn and US$ 5.5 Bn annually from 2026 to 2032. • Core Sectors: • Traditional FX earners—including apparel & textiles, tea, ICT/BPM, tourism, logistics, and remittances—must expand value addition and productivity. • Policy Recommendations: • Net Foreign Currency Contribution (NFCC): Adopt NFCC as a screening metric to measure net dollar gains (e.g., deducting imported input costs like fabric in apparel & textiles vs. low-import-cost ICT/BPM exports). • National FX Pathway Accelerator: Establish a cross-institutional mechanism to clear barriers, scale new FX pathways, and drive non-traditional foreign currency generation.

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📈 Over 80% of Rs. 95 Bn Concessionary Credit Package Utilised by Early 3Q 2026

The Development Finance Department of the Finance Ministry reported that over Rs. 75 Bn of the ~Rs. 95 Bn allocation for MSMEs and agriculture has been utilised. Higher financial allocations are being considered for 2027. • Overall Sector Breakdowns: • MSME Schemes: Rs. 37.58 Bn extended (68.5% of Rs. 54.89 Bn allocation) across 6,832 borrowers. • RE-MSME PLUS: Rs. 25.99 Bn disbursed (101% of allocation) to 2,645 beneficiaries. • Disaster Relief Loan Scheme: Rs. 8.06 Bn (87% of allocation) given to 3,966 micro/small enterprises affected by Cyclone Ditwah. • SME Development Finance Project: Rs. 3.53 Bn extended to 221 beneficiaries. • NPL & Debt Restructuring: Rs. 235 Mn in working capital issued to 70 NPL-affected entities; 342 MSMEs resumed operations via restructuring. • Agriculture Sector Performance: • Agricultural Credit: Rs. 38.02 Bn extended (93% of Rs. 40.8 Bn allocation). • Rural Credit Scheme: Rs. 25.94 Bn (104% of allocation) disbursed across 50,125 beneficiaries covering 34 crops. • Pledge Loan Scheme for Rice Millers/Cooperatives: Rs. 11.56 Bn (77% of allocation) issued, financing ~70,000 MT of paddy. • Key Highlights & Regional Impact: • National Credit Guarantee Institution: Guarantees of Rs. 9.65 Bn issued for 2,143 loans valued at ~Rs. 14 Bn. • Regional Distribution: Over 70% of total lending reached areas outside the Western Province (notably Anuradhapura, Polonnaruwa, Jaffna, Hambantota). • Targeted Inclusivity: SME revolving scheme mandates 20% of loans for women entrepreneurs and 20% for youth.

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A Third Way for Sri Lanka: Lifting the Rural Economy 📈

• Macro & Rural Disparity • Rural sector accounts for ~80% of Sri Lanka's population and land mass, but agriculture generates only ~8.4% of GDP (vs. Services 54.6%, Industry 25.4%). • Western Province generates ~42% of national GDP; remaining 8 provinces share 58% (e.g., Northern Province yields ~4.4%). • Average monthly income for rural households is Rs. 69,517 (~60% of urban average at Rs. 116,670), with 60%–70% spent on food and basic inputs. • Over 77% of multidimensionally poor and vulnerable citizens live in rural areas. • Agricultural & Livelihood Footprint • Rural farming meets 80% of domestic food needs. • Smallholders drive key exports: producing 70% of tea output and managing 62% of rubber land. • Rural youth unemployment spikes to over 3x the national average (3.7%–4.0%). • Infrastructure & Service Gaps • Only ~1,000 out of 10,000+ government schools are 1AB (offering A/L science streams), mostly concentrated in urban zones. • Tertiary healthcare requires long-distance travel to Colombo or provincial capitals. • Policy & Wealth Highlights • Flagship 'Praja Shakthi' program aims for rural empowerment via 13,977 Community Development Councils and 14,000+ digital Grama Niladhari connections. • Out of the Rs. 25,000 Mn 2026 Poverty Alleviation Budget, Rs. 23,000 Mn (~US$ 71.4 Mn) has been deployed to District Secretaries. • Recommends modernizing agriculture, establishing rural ICT/BPM digital hubs, and offering tax incentives for light manufacturing and apparel & textiles in rural provinces.

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Govt. Confident of $ 9 Bn Reserves Target by End-2026 📈

• Foreign Reserves & Inflows: • Target: Foreign reserves projected to reach US$ 9 Bn by end-2026. • Remittances: Overseas employment generated > US$ 5 Bn in worker remittances during the first seven months of 2026. • Strategy: Inflows backed by boosting net foreign exchange via FDI, exports, and non-traditional sectors. • Debt Repayments & Labour Allocation: • Obligations: Strategy aligns with preparing for US$ 3.9 Bn foreign debt repayments due in April 2028. • Strategy: Directing Sri Lankan workers toward higher-earning international job markets to enhance future debt-servicing capacity and diversify FX sources.

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📈 Sri Lanka National Inflation Hits Over 3-Year High of 7.2% in July

• Headline Inflation Overview • Sri Lanka's National Consumer Price Index (NCPI) accelerated to 7.2% YoY in July 2026 (up from 6.5% in June), reaching its highest level since June 2023. • The NCPI rose 0.5% MoM to reach a record 223.4 points, increasing average household market basket expenditure by Rs. 564.05. • Sector Breakdown & Drivers • Non-food inflation remained heavily elevated at 9.2% YoY (contributing 5.04 percentage points), driven primarily by transport (+2.23 pp) as well as housing, water, electricity, gas & other fuels (+1.21 pp). • Food inflation surged to 4.9% YoY from 3.3% in June (contributing 2.21 percentage points). Key upward price drivers included green chillies, dried fish, milk powder, and eggs, offset by price drops in rice, coconuts, and chicken. • Macro Context • Based on provisional DCS data (base 2021=100), national inflation continues an upward trajectory following 5.4% in May and 4.7% in April, reflecting persistent price pressure across non-essential services and key consumer goods nationwide.

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📈 Deloitte Report: NSBM Generates LKR 115.5 Bn Economic Value in First Decade

A study by Deloitte FAS (Pvt.) Ltd. highlights the economic and national contribution of NSBM Green University over the past 10 years operating as a self-financed entity: • Key Financial & Economic Figures Gross Value Added: Estimated LKR 115.5 Bn cumulative contribution to Sri Lanka's economy. Forex Savings: Generates ~US$ 337.8 Mn annually in foreign exchange retention by offering local higher education alternatives. Local Economy: Activity associated with the university supports over 22,000 livelihoods in the Homagama region. • Human Capital & Employment Impact Student Reach: Over 41,000 students enrolled, producing 22,855 graduates to date. Employment Rate: 86% of surveyed graduates are in permanent jobs; 74% work in fields relevant to their studies. Education Sector: Highlights the role of private/self-financed higher education in national human capital development, employment, and skill retention. • Sustainability & Community CSR Initiatives: Executed ~233 corporate social responsibility projects between 2021 and 2026, underlining sustainable regional development.

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Central Bank’s Single Rate Policy Squeezes SMEs & Recovery 📈

• Overall Figures & Banking Metrics: - Sri Lankan local banks maintain Net Interest Margins (NIMs) of 4% to 6%, significantly higher than regional peers like Bangladesh (~2.9%). - Fee and commission income accounted for ~29% of total banking income in 2025. - Household gold-pawning portfolios have surged beyond Rs. 1.3 Tn amid working capital rationing. • Impact on Key Sectors: - Vulnerable segments including agriculture, SMEs, and apparel & textiles absorb elevated interest shocks and non-performing loans, further compounded by disruptions like Cyclone Ditwah. - A blunt single policy rate treats export-earning industries generating employment the same as speculative property development and luxury vehicle imports. • Regional & Global Benchmarks: - Sri Lanka: Relies primarily on a single headline policy rate, leaving Section 76 powers under the Monetary Law Act (to direct credit by sector) largely unutilized. - India & South Korea: Utilize Priority Sector Lending and targeted emergency lending facilities (~3%) for currency-exposed SMEs and exporters. - Bangladesh & Malaysia: Implement lending rate caps and mandatory sector credit disclosures to hold commercial banks accountable. - Spain, Greece, & Brazil: Deployed targeted liquidity, tax breaks, and counter-cyclical development bank financing (BNDES) to protect national employment and foreign exchange drivers. • Path Forward: - Expert opinion calls on CBSL to enforce targeted credit allocations, active oversight on Parate execution assets, and consumer protection measures to support SMEs critical to national economic recovery.

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Sri Lanka Secures US$ 200 Mn ADB Loan for Post-Cyclone Reconstruction 📈

• Overall Funding: The Asian Development Bank (ADB) has extended a US$ 200 Mn loan to Sri Lanka for the Post-Cyclone Ditwah Reconstruction and Livelihoods Support Project, covering recovery measures from 2026 to 2030. • Transport Infrastructure: Under the Ministry of Transport, Highways and Urban Development as executing agency, the Road Development Authority (RDA) will rebuild cyclone-damaged roads with enhanced climate resilience. • Agriculture & Irrigation: Damaged irrigation systems will be restored via the Irrigation Department and Mahaweli Authority, while the Department of Agrarian Development provides support to revive agriculture & farming livelihoods. • Household Recovery: Targeted housing restoration grants will be distributed to affected families through the National Disaster Relief Services Centre (NDRSC).

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📈 OPA 39th Annual Conference Urges Economic Transformation Beyond Recovery

The Organisation of Professional Associations (OPA) held its 39th Annual Conference, “Envisioning Sri Lanka: Beyond Recovery,” on August 11–12, 2026, at Cinnamon Grand Colombo. The event focused on driving sustainable economic growth, institutional strengthening, and structural reforms following the economic crisis. • Key Highlights & Leadership: • Chief Guest Prime Minister Dr. Harini Amarasuriya stressed that economic recovery is merely a baseline, advocating for deep institutional, economic, and public service transformations. • Emphasized mobilizing national expertise, knowledge, and skills alongside physical growth for inclusive progress. • Key attendees included Guest of Honour Andrew Patrick (British High Commissioner) and Keynote Speaker Murtaza Jafferjee (Chairman, Advocata Institute). • Core Themes & Technical Sessions: • Features 19 experts across banking & finance, technology, public health, management, and academia. • Discussions centered on four pillars: resilient recovery & sustainable economic development, innovation & transformation, policy for equity & well-being, and leadership & governance. • Focused on practical, evidence-based solutions for private-sector growth, digitalisation, and human capital development. • Strategic Takeaways: • Highlighted the necessity of cross-sector collaboration among government, private sector, academia, and professional bodies to translate strategy into tangible economic outcomes.

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Global & International Business

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🌐 Existential Realism: Rethinking Sri Lanka's Foreign Policy in a De-Globalising World 📈

• Global Shift & De-Globalisation: The international order is fragmenting into a complex, bipolar/multipolar framework (USA–China–Russia). Unilateral sanctions, tariff wars, and global supply blockades—such as disruptions in the Strait of Hormuz—are weakening traditional Western-led economic globalization. • Risks of West-Centric & Sub-Regional Alignment: Relying heavily on volatile Western economies or becoming integrated with immediate sub-regional setups (e.g., India's Tamil Nadu state) poses severe existential risks. Diaspora-driven pressures in Western nations could trigger unilateral legal or trade sanctions on Sri Lanka regarding wartime accountability and internal state structures. • Strategic Imperatives for Sri Lanka: • Diversification: Reduce economic and strategic vulnerability to volatile Western corridors. • Key Global Partnerships: Preserve and expand strategic ties with global economic engines such as China (ICT/BPM, infrastructure, capital) and Russia (energy, diplomatic coverage) to act as vital growth drivers and sovereign counterweights. • Global South Engagement: Build multi-faceted relationships with non-aligned nations across Eurasia, Latin America, and Afro-Asia to secure trade resilience without conceding internal sovereignty. • Internal Pragmatism: Implement internal structural adjustments, such as provincial devolution (13th Amendment), to eliminate pretexts for external intervention while safeguarding core national integrity.

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🤝 Sri Lanka Business Mission Unlocks Trade & Investment Avenues in Australia

• Strategic Bilateral Outreach: The Ceylon Chamber's Sri Lanka–Australia–New Zealand Business Council (SLANZBC), in partnership with Sri Lanka's High Commission, concluded a high-level trade mission across Canberra, Melbourne, and Sydney to boost commercial ties and reciprocal trade. • Key Sectoral Focus: Discussions targeted cross-border expansion, institutional links, and commercial partnerships across high-growth sectors, particularly technology and AI, martech, venture capital, fisheries, and logistics. • Canberra Engagements: Held roundtables with Federal parliamentarians—including the Chair of the Australia–Sri Lanka Parliamentary Friendship Group—as well as Austrade, DFAT, and the Australian Chamber of Commerce and Industry to leverage diaspora networks and explore reciprocal trade missions. • Melbourne & Sydney Connections: Engaged Global Victoria, Invest Victoria, Food and Beverage Association, and CA Sri Lanka Australia Chapter to broaden market access for local industries and deepen institutional cooperation.

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NCE to Lead Business Delegation to India to Unlock Export Growth 📈

The National Chamber of Exporters of Sri Lanka (NCE) is organizing an trade delegation to New Delhi and Mumbai from Sept 24 to Oct 1, 2026, aimed at expanding market access and driving B2B partnerships with Indian industry leaders. • Trade Performance & Growth • Sri Lankan exports to India rose 17.2% YoY in 2025 to ~US$ 1.04 Bn (up from US$ 881.6 Mn in 2024). • Momentum accelerated in 1H 2026, with exports surging 36.16% YoY to US$ 688.47 Mn. • Trade relies heavily on the India-Sri Lanka Free Trade Agreement (ISFTA), which facilitated ~US$ 634 Mn (61.3%) of exports to India in 2025. • Focus Sectors & Opportunities • Key traditional & value-added sectors include tea, apparel & textiles, rubber & rubber products, coconut products, spices, food & beverages, gems & jewellery, electrical & electronic products, ICT/BPM, logistics, and manufacturing. • Strategic expansion focus extends to joint ventures, contract manufacturing, technology collaboration, supply chain integration, and distribution networks. • Key Institutional Engagements • Direct B2B access organized via major Indian chambers: FIEO and FICCI (New Delhi); MACCIA, AIAI, and ICIB (Mumbai). • Supported by trade officers from the Sri Lankan High Commission in New Delhi and Consulate General in Mumbai to lower entry barriers for local SMEs and emerging exporters.

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📈 Sri Lanka Pitching Expo 2027 to Australian Investors in Melbourne

• Event Overview: The Consulate General of Sri Lanka in Melbourne hosted a promotional event on 14 August 2026 to engage Victoria-based business leaders and importers for the flagship Sri Lanka Expo 2027. • Key Event Details: Expo 2027 will take place at the BMICH, Colombo, from 14–17 January 2027, serving as a platform to establish global partnerships and showcase export potential. • Sector Breakdown: Victoria-based entities represented sectors including food and beverage, logistics, financial services, tourism, and wellness. • Investment Focus: BOI highlighted key opportunities in industry, energy, and minerals, alongside investor incentives and a new digital investment platform. EDB pitched strategic access to regional markets via FTAs with India, Pakistan, Singapore, and Thailand. • Bilateral Issues: Importers highlighted delays in Plant Quarantine and phytosanitary certifications. EDB committed to convening a multi-agency meeting to streamline processes.

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📈 Foreign Diplomats Briefed on Sri Lanka Economic & Investment Summit 2026

• Event Details: The 26th edition of the Sri Lanka Economic and Investment Summit (SLEIS) 2026, organized by the Ceylon Chamber of Commerce, takes place on 12–13 October 2026 at Shangri-La Colombo. • Core Theme: Focusing on “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy.” • Diplomatic Outreach: Foreign diplomatic missions were briefed via the Ministry of Foreign Affairs to promote the summit to global business networks, investment agencies, and private sector partners. • Key Priorities: Conversations aim to move beyond short-term economic stabilization toward long-term competitiveness, structural economic reforms, trade, and sustainable growth. • Private Sector Role: Emphasized structured private sector participation as vital for converting diplomatic efforts into tangible trade and investment outcomes.

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🍍 Historic Milestone in Sri Lanka’s Fresh Fruit Exports to Pakistan

Sri Lanka achieved a major agricultural trade milestone on August 21, shipping its first-ever 20-foot container of fresh pineapples to Pakistan. The inaugural consignment was exported by C R Exports (Pvt) Ltd. • Market Potential & Trade Target: - Pakistan imports 2,000–5,000 MT of pineapples annually (~US$ 10 Mn value). - Sri Lanka generated ~US$ 2 Mn in pineapple export revenue in 2025. - Expands access under the Pakistan–Sri Lanka Free Trade Agreement (PSFTA) to help reach Sri Lanka's 2030 export goals. • Quality & Regulatory Compliance: - Shipments sourced from Good Agricultural Practices (GAP)-certified fields and registered with the Department of Agriculture (DoA). - Approved following an audit by Pakistan’s National Plant Protection Organization (NPPO) and technical clearance via Phytosanitary Certificates from Sri Lanka's National Plant Quarantine Service (NPQS). - Supported by the EDB, Department of Commerce, and diplomatic missions of both nations. • Future Expansion: - Sri Lanka aims to gain market share from major suppliers (Thailand and the Philippines) leveraging taste, quality, and proximity. - Plans are underway to expand into other fresh produce markets like avocados and oranges.

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Ceylon Chamber Expands Middle East Trade Ties via MoUs with Qatar & Lebanon 📈

• Key Partnerships: The Ceylon Chamber of Commerce signed two strategic MoUs with the Qatar Sri Lanka Business Council (QSLBC) in Colombo and virtually with the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon (CCIA-BML). • Strategic Context: The QSLBC agreement coincides with Sri Lanka and Qatar celebrating 50 years of bilateral relations, targeting enhanced business-to-business engagement. • Framework & Impact: The agreements establish structured frameworks for economic data exchange, direct B2B contacts, and cross-border commercial opportunities to connect Sri Lankan businesses with overseas markets and foreign investment.

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Oman & Sri Lanka Strengthen Investment Ties via Port City Colombo 📈

• Bilateral Engagement: Port City Colombo hosted a high-level Omani delegation led by H.E. Pankaj Khimji to establish a structured Oman–South Asia Investment and Trade Corridor and foster collaboration between Special Economic Zones (SEZs). • Trade Growth: Bilateral trade turnover expanded from US$ 118 Mn in 2018 to ~US$ 223 Mn in 2022, serving as a baseline for expanded commercial partnerships. • Investment Momentum: Port City Colombo has secured >US$ 1 Bn in investment between Q4 2025 and Q2 2026, with over 175 registered companies driving its Gulf region outreach.

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26th Exporters’ Forum Sets $36 Bn Target for 2030 📈

• Overall Targets & Milestones: Sri Lanka recorded a historic export value of US$ 17.3 Bn in 2025. The Sri Lanka Export Development Board (EDB) is targeting US$ 19 Bn for 2026, aiming for US$ 36 Bn by 2030 under the National Export Development Plan. • Policy & Growth Strategy: The government is focusing on increasing total export volume and simplifying policy obstacles. Focus is shifting toward integrating rural producers into global markets through proper packaging, technology, and market understanding. • Regional & Decentralized Support: Issues are being resolved directly with government institutions at provincial and district levels to support regional growth beyond Colombo. • Trade Facilitation: Unresolved industry challenges were addressed directly at the forum, with a significant number already routed through the Export Facilitation Task Force.

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📈 Invest Sri Lanka Forum Moves to Melbourne After Sydney Launch

• Overview: The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) commenced the Melbourne leg of the Invest Sri Lanka investor forum series in Australia, following a successful launch in Sydney. • Event Highlights: The first of three Melbourne events drew a packed audience at Hyatt Place Melbourne, Essendon Fields. Brought together investors, business leaders, and key stakeholders to promote investment opportunities and capital market potential. • Strategic Objective: Aimed at strengthening economic collaboration between Sri Lanka and Australia, driving foreign inflows, and engaging Australian investors and the Sri Lankan diaspora.

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🏛️ BMICH Marks Golden Jubilee of Historic 1976 NAM Summit

• Historical Milestone: The Bandaranaike Memorial International Conference Hall (BMICH) is celebrating the 50th anniversary of the 5th Non-Aligned Movement (NAM) Summit held in Colombo on 16–19 August 1976. The landmark event stands as a key highlight in Sri Lanka’s modern diplomatic history and international foreign policy. • Global Representation: Led by former Prime Minister Sirimavo Bandaranaike, the 1976 summit brought together heads of state, foreign ministers, and global delegates from over 85 nations. Key world leaders in attendance included Indian Prime Minister Indira Gandhi and Egyptian President Anwar al-Sadat, along with coverage from over 300 international journalists. • Commemorative Events: To mark the 50-year Golden Jubilee, BMICH will launch retrospectives featuring archival photo exhibitions, historical journals, and retrospectives on past Central Bank commemorative currency and postal stamps issued for the event. • Venue Capabilities: South Asia’s first purpose-built convention centre has continually upgraded its multi-functional facilities over five decades, spanning 39 acres of prime land in Colombo to maintain its standing as a premier regional hub for the MICE sector (Meetings, Incentives, Conferences, and Exhibitions) and hospitality industry.

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📈 NCE Expands Global Network with 21 Foreign MoUs to Boost Exporters

• Strategic MoUs & Network: National Chamber of Exporters of Sri Lanka (NCE) expands its global footprint by signing 21 MoUs with trade bodies across Australia, Canada, China, India, Italy, UK, US, and others. The latest partner is the Indian Chamber of Commerce (ICC). • Key Initiatives: Chamber facilitates B2B meetings, trade delegations, and market intelligence exchanges. Upcoming business delegations planned for India and Italy. • H1 2026 Country Growth: • India: US$ 688.47 Mn (+36.16% YoY; June spike of +156.73%) • Italy: US$ 337.20 Mn (+6.58% YoY) • China: US$ 159.22 Mn (+19.56% YoY) • Australia: US$ 135.86 Mn (+9.89% YoY) • Belgium: US$ 120.36 Mn (+4.72% YoY) • Japan: US$ 104.20 Mn (+15.74% YoY) • Other June Spikes: Türkiye (+74.37%), Mexico (+42.86%) • National Export Totals: H1 2026 merchandise exports reached US$ 6.9 Bn (+6.3% YoY), while total national export earnings grew +3.3% YoY to US$ 10.4 Bn.

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Regulatory & Policy News

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📈 Governance & AI Adoption: Implications for Sri Lanka

• National Context & Readiness: Sri Lanka is in the early stages of AI deployment. The national dataset, Lanka Data Net (LDN)—launched in early 2026—remains too premature to derive complex public policy outcomes, making strict human oversight essential over machine-driven decisions. • Public Sector & Tech Dynamics: While technologists, software engineers, and mathematicians drive AI innovation, decision-making remains dominated by legal and administrative executives. Integrating deep technical expertise into governance structures is critical to ensure system safety and risk control. • Consumer Trends: Consumer adoption of AI tools is surging rapidly, with reports indicating 81% of Sri Lankans now use AI over traditional search engines for daily information retrieval. • Global Alignment & Next Steps: To avoid risks associated with imported datasets, experts recommend adapting proven international models—such as the EU's Knowledge4Policy (K4P) framework—to establish robust data governance, transparency, and ethical compliance tailored to local needs.

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🏛️ Govt. to Establish High-Powered Business Facilitation Centre to Cut Investment Red Tape

• Overview: The Cabinet of Ministers approved a proposal by President Anura Kumara Dissanayake to set up a National Business Facilitation Centre under the Presidential Secretariat to streamline Sri Lanka's fragmented investment approval process. • Core Objective: The Centre aims to act as a single high-powered coordinating mechanism to eliminate administrative barriers, resolve delays, and improve industrial sector policymaking. • Role & BOI: Clarified that the Centre will not replace the Board of Investment (BOI). Instead, it will strengthen inter-agency coordination to help investors navigate State bureaucracy. • Key Challenges Addressed: Resolves longstanding delays in securing land, environmental clearances, regulatory licenses, utility connections (electricity/water), and banking facilities that hinder domestic and foreign projects. • Operations & Staffing: Designed to avoid extra bureaucracy, the Centre will be granted authority to resolve bottlenecks and will recruit private sector specialists, experienced public officials, and professionals on a contractual basis. • National Impact: Expected to improve Sri Lanka's overall investment climate, encouraging entrepreneurship, accelerating project commencement, and boosting employment across key industries.

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Sri Lanka to Continue QR-Based Fuel Distribution System 📈

• Policy & Rationale: The Government of Sri Lanka will maintain its QR-based fuel quota mechanism due to unresolved Middle East conflicts and global market volatility around the Strait of Hormuz. The system aims to ensure orderly distribution, prevent supply disruptions, and manage national reserves. • Consumption Trends: Total fuel usage has recorded a moderate decrease following the implementation of the QR framework: • Diesel: Consumption down by 10% • Petrol: Consumption down by 9% • Sector Allocation: Fuel stocks are currently prioritized for essential sectors to sustain core economic activity and maintain daily operations amid continuing global energy market uncertainties.

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CBSL Seeks Liquidators for Failed Financial Institutions 🏦

• Regulatory Action: The Central Bank of Sri Lanka (CBSL) has issued an invitation for Expressions of Interest (EOIs) to establish a panel of liquidators to wind up distressed licensed banks and licensed finance companies. • Legal Framework: The initiative is carried out under the provisions of the Banking (Special Provisions) Act, No. 17 of 2023, managed by the CBSL’s Deposit Insurance and Resolution Department. • Deadline Details: Official invitations were released on 23 August, with submissions closing on 7 September 2026 at 3:00 p.m.

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📈 Tax Base vs. Tax Retention: Sri Lanka’s Revenue Challenge

Sri Lanka must balance tax registration with taxpayer retention to build a sustainable revenue system, as widening the tax base alone acts like a "leaky bucket." • Key Challenge: Acquiring Taxpayer Identification Numbers (TINs) does not guarantee compliance. Registered taxpayers often become inactive due to complex procedures, lack of guidance, or administrative friction. • Core Recommendations: • Onboarding: Introduce a "First 100 Days" journey with digital welcome packages, targeted reminders, and clear assistance. • Friction Reduction: Implement a Compliance Friction Index and use recurring taxpayer complaints as data to eliminate systemic obstacles. • Risk-Based Enforcement: Distinguish between unintentional mistakes (requiring education) and deliberate tax evasion (requiring enforcement). • Trust & Incentives: Implement a Taxpayer Charter and offer simpler digital compliance for consistently compliant taxpayers. • Proposed KPI: The Ministry of Finance and Inland Revenue Department should adopt a Taxpayer Retention Rate to track active compliance over 1-, 3-, and 5-year periods. • Economic Impact: Long-term revenue growth relies on two engines—registering new taxpayers and supporting retained ones—to strengthen tax morale and fiscal stability across SMEs, corporates, and individual tax bases.

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⚖️ Govt. Sets Up Independent Procurement Sanctions Appeal Panel

The Ministry of Finance, Planning and Economic Development has established an independent three-member appeal committee to review sanctions, debarments, and blacklisting decisions in public procurement, addressing a key procedural gap in Sri Lanka's tendering framework. • Governance & Institutional Reform: Established under Section 10.2 of the Procurement Guidelines – 2024 following Cabinet approval, the mechanism aims to enhance transparency, institutional governance, and private sector confidence in government procurement. • Committee Structure: Appointed for a three-year term, the panel is chaired by a retired judge alongside two former Ministry Secretaries. The Department of Public Finance serves as the Secretariat. • Operational Scope: Allows suppliers, contractors, and service providers to submit written appeals and evidence against penalties imposed by Chief Accounting Officers (CAOs). The panel provides independent recommendations to the Treasury Secretary for final decisions. • Current Status: The committee has already reviewed multiple appeals lodged by bidders and submitted its recommendations to the Treasury Secretary.

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⚡ PUCSL Resets Renewable Tariffs & Sets 450 MW Solar-BESS Target

The Public Utilities Commission of Sri Lanka (PUCSL) has introduced a revised three-tier feed-in tariff structure effective today through 24 February 2027. The move mandates adding minimum battery-backed solar capacity to prevent expected Q1 2027 power shortages. • Key Targets & System Requirements: • National System Operator (NSO) must add at least 450 MW of solar PV paired with Battery Energy Storage Systems (BESS) by March 2027. • BESS procurement cost cap: NSO must keep unit costs for the existing 160 MW BESS at or below Rs. 20/kWh (monthly average); excess costs will not be passed to consumers. • Grid integration rule: Prosumers with systems ≥100 kW will need a generation licence upon new regulatory enactments. • Tariff Rates for Standalone Renewables: • Mini-hydro: Non-escalable Rs. 30.37/kWh + O&M Rs. 4.50/kWh. • Wind: Non-escalable Rs. 20.80/kWh + O&M Rs. 4.93/kWh. • Ground-mounted solar: Non-escalable Rs. 18.00/kWh + O&M Rs. 2.72/kWh. • Floating solar: Non-escalable Rs. 23.58/kWh + O&M Rs. 3.92/kWh. • Dendro biomass: Fuel component Rs. 31.20/kWh. • Agri/Industrial waste biomass: Fuel component Rs. 17.80/kWh. • Enhanced Tariffs with Battery Storage (BESS): • Ground-mounted solar + BESS: Rs. 47.08/kWh during prioritized periods (Rs. 20.72/kWh off-peak). • Floating solar + BESS: Rs. 53.28/kWh during prioritized periods (Rs. 27.50/kWh off-peak). • Rooftop solar (Standard): Ranges from Rs. 23.11/kWh (≤10 kW) down to Rs. 15.81/kWh (>250 kW to 1 MW). • Rooftop solar + BESS (>250 kW - 1 MW): Premium rate of Rs. 45.53/kWh for the first 15 years during peak periods.

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📈 CSE Mandates Strict New Fund Utilization Disclosure Framework

• Regulatory Action: The Colombo Stock Exchange (CSE) issued Circular No. 06/2026, introducing an immediate revised disclosure framework under Rules 7.6(xiii) and Appendix 7A, Part (a), Item 3 to enforce strict oversight on public fund deployment. • Key Disclosure Mandates: Listed entities must detail fund utilization in Annual Reports and Interim Financial Statements until proceeds from IPOs or further issuances are fully used. Disclosures must break down spending by: - Original vs. actual allocation (absolute and % of total) - Utilization percentage against targets and proposed dates - Current location of unutilized funds (bank deposits, related party loans, or other investments) • Related Party & Investment Rules: If unutilized proceeds go to related entities, companies must disclose the entity name, relationship, objective, and Board approval date. Details on counterparties and investment instruments are mandatory for other placements. • Board Compliance & Deviations: Companies must submit a certified Board Resolution extract confirming funds were used strictly per the Prospectus objectives. Any deviation requires immediate market disclosure, detailed explanations, and Board approval dates.

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EDB Consults EU Officials on EU–India FTA Impact on Sri Lanka Exports 📈

The Sri Lanka Export Development Board (EDB) met with European Commission consultants Paul Baker and Talal Rafi to discuss the implications of the landmark EU–India Free Trade Agreement (FTA) on Sri Lanka’s export economy. Concluded on January 27, 2026, the FTA will grant Indian goods substantial tariff liberalisation and duty-free access to the EU market upon entering into force. • Strategic Market Context: The EU is Sri Lanka’s 2nd largest export destination (after the US), accounting for ~24% of total merchandise exports. Sri Lankan exports to key EU markets (Germany, Italy, Netherlands, France, Belgium) recorded strong growth in 2025. • Threats & Sectoral Impacts: Tariff eliminations under the FTA will significantly boost the price competitiveness of Indian exports in Europe, posing major challenges to local sectors: • Apparel & textiles (JAAF expressed heavy concern over strict rules of origin and regional cumulation restrictions on Indian-sourced fabric under GSP+) • Leather and footwear • Gems & jewellery • Marine products, plastics & rubber, chemicals, sports goods, and toys • Strategic Response & Mitigation: • GSP+ Protection: EDB emphasised maintaining Sri Lanka's preferential access under the revised EU GSP+ scheme to offset Indian price advantages. • Regional Cumulation: Sri Lankan authorities will engage the EU to secure favorable regional cumulation arrangements for Indian raw materials. • Value Addition & Standards: Exporters are urged to transition toward high-value, differentiated goods while strictly aligning with EU sustainability, environmental, and traceability compliance standards.

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New AML Law Widens Liability Risks for Bank Staff: Justice Nawaz 📈

Sri Lanka’s amended Anti-Money Laundering (AML) framework significantly expands criminal liability for banking & financial services personnel and extends cross-border reach, Supreme Court Justice A.H.M.D. Nawaz highlighted. • Liability for Financial Sector Staff: Employees knowingly facilitating illicit transfers face charges for aiding and abetting money laundering. Bank managers knowingly receiving criminal property can be prosecuted directly for money laundering. Context follows an FCID probe into ~$1 Bn allegedly transferred abroad via fake import documents, leading to the remanding of 4 commercial bank officials. • Key Provisions & Wider Reach: Covers transactions partly conducted outside Sri Lanka and proceeds from foreign crimes used to purchase local property (subject to forfeiture). Money laundering can now be prosecuted as a stand-alone offense. Unexplained funds disproportionate to legitimate income can trigger proceedings if not properly explained. Target offenses expanded to include crimes carrying minimum sentences of 5+ years. • Trade-Based Laundering & Controls: Highlights risks in trade-based money laundering (e.g., advance import payments with no incoming goods). Demands stricter Know Your Customer (KYC) and ongoing due diligence to prevent fake companies from operating accounts. • Freezing Powers & Reporting: Police (ASP rank and above) can freeze assets for an initial 14 days based on suspicion of irregular fund movements. Failure to report suspicious transactions or "tipping off" targets about investigations carries criminal penalties. • Upcoming APG Review: Questions effective implementation ahead of the Asia/Pacific Group on Money Laundering (APG) evaluation scheduled for October. <FollowUp label="Would you like a summary on how these AML changes impact customer due diligence and reporting requirements?" query="Summarize how Sri Lanka's new AML law impacts customer due diligence and reporting obligations for financial institutions."/>

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FIU Tightens Bank Compliance Rules Ahead of Global Review 📈

Sri Lanka's Financial Intelligence Unit (FIU) is introducing a stricter Customer Due Diligence (CDD) framework for banking, finance, insurance, and virtual asset service providers by mid-September to align with global Anti-Money Laundering (AML) standards. • New Regulations & Requirements • Continuous transaction monitoring replaces one-off onboarding checks. • Mandatory "event-driven reviews" triggered by material changes in ownership, control, directors, or business scope. • Failure to complete CDD halts onboarding, transactions, and business relationships, requiring a Suspicious Transaction Report (STR). • Risk-based updates: Annual CDD for high-risk clients vs. every 3 years for low-risk clients. • Penalties & Enforcement • Maximum fine for a single AML breach rises from Rs. 1 Mn to Rs. 100 Mn (up to Rs. 200 Mn for repeat violations). • Additional sanctions include cease-and-desist orders and license suspensions. • National Economic Impact • Institutions get 4-5 weeks to comply before an international evaluation team arrives on October 26. • Crucial to prevent re-listing on the FATF grey list, which risks country ratings, correspondent banking links, foreign investment, and borrowing costs.

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📈 US-Canada Trade Talks Collapse: Retaliatory Tariffs Announced

• Trade Breakdown: Negotiations between the US and Canada have failed, prompting Canada to impose "dollar for dollar" retaliatory tariffs starting September 8. • US Import Tariffs: The US ordered 50% tariffs covering ~$20 Bn in Canadian exports (around 5% of total US-bound exports), affecting sectors like wine, dairy, furniture, apparel, and fishing equipment. • Targeted US Sectors: Canada's reciprocal tariffs will apply to US imports including steel, electronics, dairy, appliances, agricultural equipment, and pulp & paper. • Industrial Impact: Key sticking points included terms for heavy-duty vehicle manufacturing, directly impacting the auto and manufacturing sectors, alongside concerns over Canadian sovereignty and trade independence. _Note: Data based on provided news report._

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Appointments & Executive Moves

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👔 Dr. Prasad Samarasinghe Appointed Chairman of HNB Finance

HNB Finance PLC has announced the appointment of Dr. Prasad Samarasinghe as Chairman, effective 28 August 2026. He succeeds Rajive Dissanayake, who is retiring following nine years of service. • Corporate Leadership Change: Dr. Samarasinghe joined the board of HNB Finance in February 2024 as a Nominee Director of Hatton National Bank PLC, overseeing audit, strategy, technology, and risk management. • Executive Track Record: Brings nearly 30 years of experience across the banking, telecommunications, ICT/BPM, and corporate governance sectors. He currently serves on the board of Hatton National Bank PLC and holds directorships at Hayleys Fibre PLC and Chemanex PLC. • Strategic Focus: His background in cybersecurity, digital infrastructure, and regulatory compliance will guide the company through an evolving landscape of digital transformation and financial sector risk management.

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🏛️ Chandana Guniyangoda Assumes Duties as New Chairman of People’s Bank

• Milestone Governance Reform: Marks a key development in Sri Lanka's state-owned banking sector as Guniyangoda becomes the first Chairman of a state-owned licensed commercial bank appointed as an Independent Non-Executive Director under the IMF-supported reform framework (CBSL Banking Act Directions No. 05 of 2024). • Leadership & Background: A Fellow of CA Sri Lanka (FCA) and CMA Sri Lanka (FCMA) with over 28 years of experience, including 19 years in commercial banking. • Key Experience: Former roles include Assistant Vice President at NDB Bank, ALCO Officer at Sampath Bank, and Group CFO of MG Group. He also holds positions as Independent Chairman of People’s Insurance PLC and Board Member at New Vithanakande Tea Factory Ltd.

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🏦 Seylan Bank Appoints Krishan Thilakaratne as Deputy Chairman

Seylan Bank PLC has named Non-Executive Director Krishan Thilakaratne as the Deputy Chairman of its Board, effective 17 August 2026. • Leadership & Career Track: - Joined Seylan Bank in 1990 as a Banking Assistant before moving to LOLC Group in 1995. - Brings over 31 years of experience across management, credit, factoring, portfolio management, and Islamic finance. - Currently serves as Director/CEO of LOLC Finance PLC and is on the Senior Management Team of LOLC Holdings PLC. • Governance & Industry Footprint: - Has served on the Seylan Bank Board as a Non-Executive Director since 2018. - Former Chairman of the Finance Houses Association of Sri Lanka (FHASL) and former Board Member of the Credit Information Bureau of Sri Lanka (CRIB). - Holds extensive board-level international exposure across Southeast Asia, Central Asia, and Egypt. • Qualifications: - Passed Finalist of CIMA (UK), Associate Member of IBSL (AIB), and alumnus of the Harvard Business School Strategic Leadership Training Program in Microfinance.

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👔 Abans PLC Appoints Buddhika Dharmawardene as New CEO

• Executive Leadership Change: Abans PLC has officially appointed Buddhika Dharmawardene as its new Chief Executive Officer, effective 20 August 2026. • Decades of Experience: Dharmawardene brings over 26 years of experience within the Abans Group, having joined the company on 1 November 1999. • Career Trajectory: Prior to this appointment, he held multiple leadership roles, including Brand Manager, Deputy Director, Chief Marketing Officer, and most recently, Director of Operations (appointed March 2023). • Qualifications & Impact: Holds an MBA (Merit Pass) from the University of Wales, UK, and completed Executive Education at NUS Business School. He has played a key role in driving business growth, operations, brand development, and strategic expansion across the company's core operations.

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WSO2 Names Harry Ault as New CEO to Drive Next Growth Phase 📈

• Leadership Transition: Global open-source enterprise software leader WSO2 has appointed Harry Ault as Chief Executive Officer. He takes over day-to-day leadership immediately, succeeding Founder and former CEO Dr. Sanjiva Weerawarana, who stepped down in May 2026. Chief Revenue Officer Devaka Randeniya served as Acting CEO during the transition. • Executive Track Record: Ault brings over 20 years of global go-to-market and revenue leadership experience. He previously served as Chief Revenue Officer at AI inference chip technology company SambaNova Systems. His appointment follows key C-suite expansions at WSO2, including new CFO and CMO appointments. • Strategic Focus for ICT/BPM: WSO2 aims to scale its global customer base of over 700 enterprise organizations and expand its ecosystem across open-source and partner networks. The strategy centers on advancing its Trusted AI Governance vision through the WSO2 Agentic Enterprise Fabric (AEF), integrating API management, identity, engineering, and agent platforms.

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Suranjith Wewita Appointed New SLTDA Chairman 📈

• Leadership Change: Suranjith Wewita has been appointed Chairman of the Sri Lanka Tourism Development Authority (SLTDA) by Tourism Minister Vijitha Herath. He officially received his appointment letter yesterday. • Role Division: Buddhika Hewawasam continues in his dual/separate role as Chairman of the Sri Lanka Tourism Promotion Bureau (SLTPB). • Professional Background: • Extensive corporate experience in banking (Seylan Bank), financial management, deposit mobilisation, and corporate crisis management. • Active in the tourism sector as a tourism entrepreneur and trade union leader. • Current Engagements: • Member of the Presidential Task Force for Tourism Development. • Secretary of the All Ceylon Tourism Service Providers Association. • Strategic Focus: The Tourism Ministry highlighted that Wewita's financial expertise and leadership will steer the regulatory body to drive growth and sustainability in Sri Lanka's tourism sector.

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📉 SLTDA Chairman Buddhika Hewawasam Steps Down Ahead of Major Campaigns

• Leadership Change: Joint Chairman of the Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB), Buddhika Hewawasam, has resigned as SLTDA Chairman, effective 17 August 2026. He cited personal reasons, noting he had initially agreed to hold the dual post for one year but extended his tenure at the request of President Anura Kumara Dissanayake. • Strategic Focus: Hewawasam will remain focused on executing upcoming interim market-specific promotional campaigns to maintain visibility ahead of the winter travel season, as well as preparing for the planned Rs. 3.5 Bn global destination branding campaign slated for late 2026 or early 2027. • Sector Impact: The transition comes at a critical time for tourism, a pivotal sector for foreign exchange earnings and employment in Sri Lanka's economy. • Succession: Suranjith Wevita is expected to be appointed as the new SLTDA Chairman by Tourism Minister Vijitha Herath, though official confirmation was pending as of yesterday.

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📈 Nirekshe Perera Appointed CEO of Three Listed George Steuart Hotel Properties

George Steuart Group companies—Citrus Leisure PLC, Hikkaduwa Beach Resort PLC, and Waskaduwa Beach Resort PLC—have appointed Nirekshe Perera as their new Chief Executive Officer. • Leadership & Appointment: - Nirekshe Perera takes over as CEO across all three listed hotel entities under the George Steuart group. - Brings over 25 years of leadership experience in the hospitality sector, spanning luxury hotels, integrated leisure complexes, MICE operations, and banking. • Background & Track Record: - Former Group CEO of Monarch Imperial; held senior leadership roles at Shangri-La Hotel Colombo, Waters Edge Ltd., and Hilton Colombo Residences. - Holds a Bachelor of Commerce from the University of Western Sydney, Australia, and is a Member of the Chartered Institute of Marketing (CIM). - Holds no other directorships and has no business or personal relationships with any directors or substantial shareholders of the companies.

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📈 HDFC Bank Appoints H.B. Keerthirathna as New Chairman

• Appointment Details: Housing Development Finance Corporation Bank of Sri Lanka PLC (HDFC Bank) announced senior banker H.B. Keerthirathna as its new Chairman. • Industry Experience: Brings over 35 years of finance industry experience across banking & finance, housing finance, international trade, treasury back office, strategic planning, and corporate management. • Career History: • Began career at Sampath Bank PLC in 1988, retiring as Assistant General Manager – Finance. • Served as Consultant for Sampath Bank Group, leading strategic turnarounds for subsidiaries including Siyapatha Finance PLC, Sampath Centre Co. Ltd., SC Securities Co. Ltd., and Sampath IT Solution Co. Ltd. • Former Chief Financial Officer of Fintrex Finance Ltd. • Education & Credentials: Holds a B.Com (Special) First Class Honours and MBA from the University of Colombo. Certified Business Accountant (CA Sri Lanka) and Associate member of the Institute of Bankers of Sri Lanka (IBSL). Completed executive programs at Harvard Business School and Asian Institute of Management. • Current Roles: Director and Chairman of the Board Investment Sub Committee at the National Insurance Trust Fund Board (NITF), while providing financial consultancy via Professional Business Consultants Ltd.

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📈 CSE Revokes Trading Suspension as Richard Pieris Securities Restructures Leadership

• Regulatory Update: The Colombo Stock Exchange (CSE) has revoked the intended suspension of trading activities for Richard Pieris Securities, allowing the stockbroking firm to resume full operations. • Leadership & Governance: The company appointed a new Chief Executive Officer (name undisclosed) alongside experienced key management personnel in investment services to strengthen corporate governance and regulatory compliance. • Parent Group Support: Backed by parent conglomerate Richard Pieris Group (Arpico)—which employs 17,000 people—the firm aims to ensure operational continuity and deliver reliable services across Sri Lanka's capital market.

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📈 SHRM Expands Presence in Sri Lanka & Appoints New Country Lead

The Society for Human Resource Management (SHRM), representing ~340,000 global members, has strengthened its direct footprint in Sri Lanka to enhance human resources capability building and organizational consulting. • Leadership & Strategic Focus: • Oshana Dias appointed as Country Lead for SHRM Sri Lanka. • Business led by Dedeepya Ajith John (Senior Director – Consulting & BD, SHRM India & APAC) and supported by Senior Consultant Kaavya Sasidharan. • Deepens local operations beyond its ongoing association with the Association of Human Resource Professionals (AHRP). • Core Offerings & Sector Impact: • Expanded access to globally recognized SHRM-CP and SHRM-SCP certifications. • Delivery of consulting services spanning talent management, leadership development, workforce planning, and HR transformation. • Introduction of local master classes covering HR and AI, HR analytics, and change management to support workforce modernization. • Pricing & Regional Access: • Special promotional SHRM membership rate offered at US$ 49 for Sri Lankan HR professionals. • Preferential delegate rate of US$ 215 for the SHRM India Annual Conference (Nov 26–27, 2026). • Sri Lankan firms and leaders gain eligibility for the 15th SHRM HR Excellence Awards.

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📊 Central Finance Appoints Manjula de Silva as Chairman; Sellathurai Prabagar Joins Board

Central Finance Company PLC has announced key board appointments to strengthen its strategic governance and operational leadership, effective 16 August 2026. • Board Leadership Changes: • Manjula de Silva appointed as Chairman (previously Senior Director since May 2025 and Board member since July 2020). • Veteran banker Sellathurai Prabagar joins as an Independent Non-Executive Director. • Profiles & Expertise: • Manjula de Silva: Former Secretary General/CEO of the Ceylon Chamber of Commerce and ex-Managing Director/CEO of HNB Assurance PLC. Held prominent public and private sector roles, including Chairman of NITF, SEC Commission Member, and Director General of PERC. • Sellathurai Prabagar: Bring 30+ years of banking and financial sector experience. Former Chief Operating Officer and Executive Director of Commercial Bank of Ceylon PLC, with expertise in corporate governance, risk management, and cross-border expansion. • Strategic Context: • Strengthens Central Finance's leadership within Sri Lanka's non-banking financial institutions (NBFI) sector by bringing extensive expertise in regulation, corporate governance, and risk oversight.

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Corporate News

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Porsche Signs US$ 1.5 Bn Strategic AI Deal with TCS 📈

• Deal Overview: German automaker Porsche AG signed a 5-year, €1.25 Bn (US$ 1.5 Bn) agreement with Indian software services major Tata Consultancy Services (TCS). • Key Operational Focus: The partnership will deploy artificial intelligence across Porsche’s engineering, manufacturing, operations, and customer experience functions to drive digital transformation. • Asset Acquisition: As part of the arrangement, TCS will acquire Porsche’s Germany-based consulting subsidiary, MHP Management- und IT-Beratung GmbH. • Valuation & Closing: The MHP unit is valued at €320 Mn (US$ 374 Mn). The acquisition is expected to finalize within 3 to 4 months, pending necessary regulatory approvals. • Strategic Alignment: Porsche CEO Michael Leiters stated the divestment aligns with the automaker's core strategy to focus strictly on its primary automotive business. While centered on European and Indian corporate entities, global shifts in ICT/BPM tech outsourcing highlight growing cross-border demand for AI-driven transformation solutions.

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🤝 Adfactors PR Acquires Majority Stake in Australia’s SenateSHJ

• Regional Expansion: India’s largest public relations firm, Adfactors PR, has acquired a majority stake in Australian communication consultancy SenateSHJ to build a robust Asia-Pacific footprint. • Operations & Leadership: SenateSHJ will maintain its brand identity and continue operating from Sydney and Melbourne under Co-founder/Chair Angela Scaffidi AM and CEO Darren Behar. Adfactors PR CEO Nijay N. Nair joins the SenateSHJ board. • Sri Lanka Impact: The partnership enhances the international network for Adfactors PR Lanka, benefiting local enterprises looking to navigate cross-border reputation and trade in Australia. • Strategic Trade Links: The expansion directly supports key Sri Lankan export sectors targeting Australia, including apparel, tea, and rubber, alongside investment, education, and community linkages.

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📈 Fintrex Finance More Than Doubles 1Q PAT to Rs. 210 M

• Overall Financial Performance (1Q FY2026/27): • Profit After Tax (PAT): Rs. 209.93 Mn (+104% YoY from Rs. 103 Mn) • Profit Before Tax (PBT): Rs. 340.59 Mn (+102% YoY) • Gross Income: Rs. 2.05 Bn (+57% YoY) • Total Operating Income: Rs. 1.31 Bn (+65% YoY) • Income Breakdown & Cost Impact: • Interest Income: Rs. 1.70 Bn (+50% YoY) • Net Interest Income: Rs. 961.95 Mn (+55% YoY) • Net Fee & Commission Income: Rs. 334.77 Mn (+104% YoY) • Impairment Charges: Rs. 278.73 Mn (+43% YoY) • Net Operating Income: Rs. 1.03 Bn (+72% YoY after provisions) • Balance Sheet & Growth Indicators: • Total Assets: Rs. 34.45 Bn (+9% expansion during the quarter) • Loans & Lease Receivables: Rs. 30.37 Bn (+7% quarterly growth) • Total Equity: Rs. 4.59 Bn (+5% quarterly growth) • Net Assets Per Share: Increased to Rs. 16.01 (from Rs. 15.28) • Context: Performance is based on unaudited interim financial statements for the quarter ended 30 June 2026. Revenue momentum was driven by portfolio expansion in core financial services, disciplined execution, and significant fee-based diversification.

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⚖️ FJ&G de Saram Launches U.L. Kadurugamuwa Legacy Series

Leading Sri Lankan law firm FJ&G de Saram launched the U.L. Kadurugamuwa Legacy Series in its 185th anniversary year to honor its late Precedent Partner, U. L. Kadurugamuwa. The inaugural event at Hilton Colombo brought together legal professionals, arbitrators, and clients to discuss commercial arbitration. • Dispute Resolution & ADR: Highlights included Kadurugamuwa's key role in Sri Lanka's Alternative Dispute Resolution (ADR) framework, including the Arbitration Act No. 11 of 1995, ICLP, and the International Alternate Dispute Resolution Centre (IADRC). • Commercial Arbitration Trends: Legal experts from Allen & Gledhill, Rajah & Tann, and SIAC discussed multi-contract disputes, jurisdictional challenges, and the role of supervisory courts in cross-border transactions. • SIAC Rules 2025: Panelists presented key updates from the SIAC Rules 2025, emphasizing emergency arbitration, interim relief, and early dismissal of unmeritorious claims to enhance legal efficiency for businesses.

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📈 People’s Insurance 1H 2026: GWP Up 39%, PBT Surges 63%

People’s Insurance PLC recorded a strong financial performance in 1H 2026, significantly outperforming Sri Lanka’s broader general insurance industry. • Overall Performance - Gross Written Premium (GWP): Rs. 5.21 Bn, up ~39% YoY (vs. industry growth of 23%). - Profit Before Tax (PBT): Rs. 525.6 Mn, up ~63% YoY. - Profit After Tax (PAT): Rs. 357.3 Mn (+61% YoY). - Earnings Per Share (EPS): Rs. 1.75 (vs. Rs. 1.09 in 1H 2025). • Sector Breakdown - Motor Portfolio: Rs. 4.05 Bn GWP (+39.2% YoY vs. ~33.5% industry growth), remaining the primary growth engine. - Non-Motor Portfolio: Rs. 1.16 Bn GWP (+37.4% YoY), substantially beating the overall industry's Non-Motor expansion of ~9.9% as diversification efforts pay off. • Financial Position & Operations - Underwriting Loss: Reduced significantly to Rs. 92.4 Mn (down from Rs. 231.9 Mn loss in 1H 2025). - Investment & Other Income: Increased to ~Rs. 618 Mn (+11.7% YoY). - Total Shareholders' Equity: Reached ~Rs. 6.33 Bn as of June 30, 2026. - Credit Rating: Fitch Ratings affirmed its 'A(lka)' Insurer Financial Strength rating with a Stable Outlook, supported by healthy Capital Adequacy Ratios.

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📈 Singer Finance to Raise Up to Rs. 3 Bn via Rights Issue

Singer Finance (Lanka) PLC has announced plans to raise up to Rs. 3 billion through a capital-boosting rights issue. • Capital Raising Terms: The company will issue up to 76,648,787 new ordinary voting shares at Rs. 39.20 each. Existing shareholders will be offered 8 new shares for every 29 existing ordinary voting shares held. • Use of Proceeds: Funds will be utilized to strengthen capital adequacy ratios and support expansion in lending operations within Sri Lanka’s non-banking financial sector. • Regulatory & Governance Approval: Received Central Bank of Sri Lanka (CBSL) approval on 19 August 2026. Final execution remains subject to CSE approval in principle and an Extraordinary General Meeting (EGM) shareholder resolution. • Financial Background: • Stated Capital: Rs. 4.005 Bn (277.85 million shares as of 30 June 2026). • Net Asset Value: Rs. 35.36 per share (end-June 2026). • Parent Company: Singer (Sri Lanka) PLC (controlled by Hayleys PLC) holds the major shareholding at 79.93%. • Share Trading: Stock traded up by 70 cents to Rs. 49.00 mid-session.

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📈 Bank of Ceylon Reports Strong 1H 2026 Performance with Rs. 62.7 Bn PBT

• Core Financial Highlights PBT: Rs. 62.7 Bn PAT: Rs. 39.8 Bn Net Interest Income: Rs. 109.4 Bn Interest Income: Rs. 253.7 Bn (Up 4% YoY) Net Fee & Commission Income: Rs. 12.7 Bn (Up 17% YoY) Total Operating Income: Rs. 131.4 Bn (Up 9% YoY) Government Tax Contribution: Rs. 39.2 Bn • Balance Sheet & Ratios Total Assets: > Rs. 5.4 Tn Total Deposits: Rs. 4.3 Tn Gross Loans & Advances: Rs. 2.8 Tn Stage 3 Loan Ratio (Net): Improved to 5.01% Cost-to-Income Ratio: 32.67% ROA / ROE: 2.30% / 20.44% Capital Adequacy: Tier I at 13.32%, Total Capital at 17.22% • Key Focus Areas & Economic Impact Financed critical national infrastructure, SOEs, and key imports (fuel, pharmaceuticals, coal, gas) Dedicated funding for key growth drivers including SMEs, agriculture, exporters, and youth/women entrepreneurs via dedicated circles and the Agri-Banking Unit Facilitated national social programs, opening 700,000+ accounts for Aswesuma beneficiaries Accelerated adoption of digital solutions like BOC Flex and SmartPay QR while remaining the largest facilitator of inward remittances

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BOC to Raise Up to Rs. 10 Bn via AT1 Bonds 📈

State-owned banking giant Bank of Ceylon (BOC) has opened an unlisted, Basel III-compliant Additional Tier 1 (AT1) bond issue to bolster its financial structure. • Issue Details: Offers an initial Rs. 5 Bn (50 million bonds at Rs. 100 each), with an option to raise up to Rs. 10 Bn in case of oversubscription. Rated ‘AA-‘ (Stable) by Lanka Rating Agency Ltd. • Returns & Maturity: Floating annual rate set at 12-month net T-Bill rate + 2.00% p.a. Bonds are perpetual (no fixed maturity), with a discretion-based call option after 5 years subject to CBSL approval. • Impact on Capital: Designed to enhance Tier 1 capital, manage asset-liability gaps, and expand liquidity. BOC's Capital Adequacy Ratio (CAR)—currently at 17.22% vs 15.00% regulatory minimum—is projected to rise to 17.45% (at Rs. 5 Bn raised) or 17.69% (at Rs. 10 Bn raised). • Investor Eligibility: Issue runs until 31 December 2026 (or until fully subscribed) exclusively for qualified institutional and high-net-worth investors, with a minimum subscription of Rs. 1 Mn (Rs. 50 Mn for individual qualified investors).

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### OMODA & JAECOO Record 144,841 Global Sales in June-July 📈

• Global Sales Figures: OMODA and JAECOO achieved 144,841 total global vehicle sales across June and July 2026, driven by sustained international demand. • New Energy Vehicle (NEV) Performance: - NEV segment dominated results with 112,775 units sold (~77.8% of total volume). - Strong growth reflects global demand for electric, hybrid, and intelligent mobility tech. • Sri Lanka Market Context: - Distributed exclusively by Hayleys Mobility (a division of Hayleys Fentons Ltd.). - Local operations provide full after-sales support, genuine parts, and specialized ownership solutions for Sri Lanka's growing automotive and electric vehicle markets.

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🚨 Governance & Banking Under Scrutiny Over Alleged US$ 1 Bn Outflow 📈

• Systemic Risks & Financial Crime An ongoing investigation into alleged illicit capital outflows running into hundreds of millions of dollars (alleged total of up to US$ 1 Bn) involving senior officials of leading private banks has raised serious concerns regarding institutional safeguards and regulatory oversight. • Corporate Governance Failures The case highlights critical questions over board of directors' accountability, asking whether compliance mechanisms, internal audits, and risk management systems in the banking sector were bypassed or structurally inadequate to detect suspicious trade-based transactions. • National Economic Impact The incident poses a threat to foreign investor confidence, international correspondent banking relationships, and national economic security at a critical time when Sri Lanka is attempting to rebuild trust and foreign-exchange stability. • Call for Preventive Reforms Experts urge a shift from reactive law enforcement to comprehensive risk prevention, including automated monitoring, enhanced trade-finance controls, independent compliance functions, and systemic oversight by regulators. --- [Hiru News: Four bank managers remanded over $1 billion financial scam](https://www.youtube.com/watch?v=2v0s8KBwmtU) This video report provides additional context on the arrest and court proceedings of the four private bank managers involved in the alleged US$ 1 billion financial scheme.

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📈 JAT Holdings Posts 34% YoY Revenue Growth to LKR 3.04 Bn in Q1 FY26/27

• Financial Performance Overview: Group revenue surged 34% YoY to LKR 3.04 Bn for the quarter ended 30 June 2026. Gross profit grew 29% YoY to LKR 1.07 Bn, though GP margin moderated to 35% (from 37%) due to higher global commodity costs. Profit After Tax (PAT) remained steady at LKR 150 Mn, while Profit Before Tax (PBT) stood flat at LKR 167 Mn. Operating profit fell 25% YoY to LKR 174 Mn due to Mirotone consolidation expenses, software depreciation, and higher fuel and transport costs. • Geographic Breakdown: - International Operations: Revenue spiked 110% YoY to LKR 1.21 Bn. Revenue in Bangladesh grew 33% in BDT terms (led by 61% growth in Coat-Ex sales and 31% in industrial), while the Maldives grew 624% QoQ. Mirotone NZ posted 10% QoQ growth in NZD terms despite a loss of NZD 59,000, while Mirotone Australia was established as a wholly owned subsidiary. - Domestic Operations: Sri Lankan revenue grew 8% YoY to LKR 1.83 Bn. • Sector & Segment Performance: - Wood Coatings: Maintained a 57% market share with 8% QoQ revenue growth. - Paint, Chemicals & Related: Recorded 85% QoQ revenue growth, capturing 11% of the Brilliant White segment. - Brushes & Rollers: Achieved 78% QoQ revenue growth, expanding reach by 12% to over 3,000 outlets. - Furnishing: Direct revenue fell 7%, but total value (including customer-paid LC components) surged 64% QoQ, with a confirmed pipeline of ~LKR 763 Mn. - EV Charging Infrastructure: Volt Charge maintained its position as Sri Lanka’s largest EV charger manufacturer (>3,500 units to date) and secured a landmark order for 2,000 chargers from John Keells CG Auto (BYD distributor).

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📈 Hayleys PLC Secures Historical S&P 'B+' Rating

Hayleys PLC became the first Sri Lankan corporate to receive a foreign currency issuer credit rating from S&P Global Ratings, securing a 'B+' with a Stable Outlook—standing two notches above Sri Lanka’s 'CCC+' sovereign rating. • Rating & Outlook Highlights: - Rating supported by strong export earnings, limited FX debt, and operational resilience demonstrated during the 2022-2023 debt crisis. - S&P expects FFO-to-debt ratio to stay above 12% with annual EBITDA growth of 10%-12% over the next 2-3 years. - Revenue growth projected at 13%-14% in FY27, backed by real GDP growth forecasts for Sri Lanka (3.7% in 2026). • Geographic & Segment Breakdown: - 50% of Group revenue generated overseas: Asia (25%), US (10%), and Europe (10%). - Core export drivers include hand protection (gloves), purification (activated carbon), textiles, and tea. - Subsidiary Singer (Sri Lanka) PLC drives 20% of Group earnings, holding a 37% market share in local consumer durables. • Expansion & Capital Expenditure: - Annual capex of Rs. 40-50 Bn planned for FY27-FY28, primarily targeting expansion in the purification and hand protection sectors. - Annual dividend payouts projected at Rs. 8-10 Bn over FY27-FY28.

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Awards & Recognitions

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🏆 Applications Open for 34th NCE Export Awards 2026

The National Chamber of Exporters of Sri Lanka (NCE) has officially invited eligible Sri Lankan exporters to apply for the prestigious 34th NCE Export Awards 2026. • Key Highlights & Deadlines • Application Deadline: 30 September 2026. • Awards Ceremony: 11 December 2026. • Guidance: NCE is currently hosting briefing sessions to assist applicants with evaluation criteria and submission requirements. • Application Portal: Available for download via www.nce.lk. 📈 National & Global Strategic Value • Brand Credibility: Winners earn the right to display the official winner's logo on corporate communications, email signatures, and product packaging to build trust with local and foreign buyers. • International Reach: Recognised status enhances visibility, acts as a point of distinction, and strengthens representation at international trade exhibitions. • Internal Motivation: Provides management a platform to benchmark performance against global standards while boosting employee morale. • Macro Economic Context • Sri Lanka’s total export earnings crossed the US$ 10.4 Bn milestone in H1 2026. • Recorded a robust growth of +3.3% YoY during the first six months. • Reflects resilient growth across key driving sectors such as apparel & textiles, tea, and ICT/BPM, strengthening national competitiveness and employment in global trade.

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Prime Lands Residencies PLC Named Sri Lanka’s Most Valuable Real Estate Brand for 2026 📈

• Industry Leadership: Prime Lands Residencies PLC secured recognition as the Most Valuable Real Estate Brand in Sri Lanka for 2026 by Brand Finance, evaluating financial performance, brand strength, and long-term value creation. • Portfolio & Deliveries: The residential arm of Prime Group has launched over 55 apartment projects across Colombo and suburbs, with 47 delivered on time. Overall, the company completed 70+ residential developments, alongside Prime Group's 10,000+ land projects. • Economic Context: Underscores sector leadership and customer trust while driving local and international growth within real estate and housing infrastructure.

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🏆 Ceylinco Life Retains Position as Sri Lanka’s Most Valuable Insurance Brand

Ceylinco Life has once again been named Sri Lanka’s most valuable brand in the insurance sector, according to the 2026 Brand Finance ranking of the country’s 100 Most Valuable Brands. Key metrics from the latest evaluation include: • Brand Valuation & Rating: Valued at Rs. 6.7 billion with an AAA rating for 2026, marking growth from its 2025 valuation of Rs. 6.45 billion (AAA- rating). • National Ranking: Secured the 25th spot overall in the 'Sri Lanka 100' brand rankings. • Evaluation Criteria: Assessed on brand strength and value using internationally recognized standards, incorporating marketing investment, stakeholder equity, and overall business performance. The ranking highlights Ceylinco Life's continued market leadership and brand equity stability within Sri Lanka's broader financial services sector.

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📈 NSB Retains Spot Among Sri Lanka’s Top 5 Most Valuable Brands

National Savings Bank (NSB) has once again secured its position among the country's top five most valuable brands, according to the 2026 Brand Finance Sri Lanka 100 valuation assessment. • Overall Landscape: The combined value of Sri Lanka’s top 100 brands grew by 17% YoY to Rs. 650 Bn in 2026, surpassing the pre-crisis peak of Rs. 630 Bn set in 2019. • Sector Breakdown: The banking sector remains the dominant driver of Sri Lanka's brand equity, accounting for ~42% of the total value of the top 100 brands. • Strategic Focus: NSB's recognition highlights its role in national financial security and inclusive development, supported by ongoing investments in digital transformation, customer experience, and modernized services.

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📈 PR Wire Named 'Best Consultancy to Work For' in Asia-Pacific for 4th Consecutive Year

Sri Lanka's PR Wire, a member of the Wire Communication Consultancy Holdings group, has clinched top honours as the Best Consultancy to Work For (Asia-Pacific - South Asia) at the Asia-Pacific SABRE Awards in Singapore. • Key Recognition: Awarded by PRovoke Media for the 4th consecutive year, evaluating firms via confidential employee feedback on workplace culture, collaboration, DEI, ethical leadership, and mental health support. • Sector Significance: Showcases Sri Lanka’s expanding capabilities in the ICT/BPM and professional service sectors on a global scale. PR Wire is marking 15 years of operations by scaling capabilities in reputation management, digital strategy, media intelligence, and sustainability communications. • Workplace Model: Driven by a 'work from anywhere' policy, continuous leadership development, equal opportunity frameworks, and comprehensive employee well-being initiatives.

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GAEA International Achieves Key SGS Certifications to Boost Sri Lankan Dairy Facility 📈

• Key Highlights: GAEA International Ltd., operator of the Kaern dairy brand in Sri Lanka, has received ISO 22000, HACCP, and GMP certifications from SGS for its local manufacturing facility. • Strategic Partnership: The company operates as a joint venture with a Chinese partner, integrating global dairy supply chain expertise with local operations to strengthen food safety and supply reliability in Sri Lanka. • Market Footprint: Marking its second consecutive year at the Pro Food Pro Pack Exhibition at BMICH, GAEA is expanding its portfolio in dairy processing, offering Kaern Full Cream Milk Powder, UHT Full Cream Milk, Whole Milk Powder, and Skim Milk Powder tailored for food manufacturers and food-service applications.

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🏆 DIMO Secures Top Honors at NBEA 2026

Sri Lankan conglomerate DIMO won the Infrastructure and Utilities Sector Award and was named Runner-Up for Excellence in ESG at the National Business Excellence Awards (NBEA) 2026. The awards highlight DIMO’s transition from automotive sales into a tech-driven engineering and renewable energy solutions provider. • Sector Impact & Power Infrastructure: • Contributes to over 70% of Sri Lanka's power grid substations. • Completed the New Habarana Grid Substation with Siemens to strengthen the national transmission network. • Delivered an 80% energy efficiency improvement at Colombo's Ambathale water treatment plant. • Renewable Energy Expansion: • Added 18 MW across four utility-scale solar projects in Galle, bringing cumulative solar capacity to 25.845 MW (AC). • Generates 31.8M kWh of clean energy annually, powering ~38,000 families and cutting emissions by over 12,900 tCO2e. • Commissioned Sri Lanka's first microgrid project at the University of Moratuwa. • Engineering & Diversification: • Installed ICC-compliant LED floodlighting at R. Premadasa and Dambulla international cricket stadiums. • Delivered specialized lighting, fire detection, and ELV systems for the flagship Cinnamon Life Integrated Resort project. • Operational focus anchored by DIMO's Sustainability Agenda 2030 across core engineering, energy, and infrastructure verticals.

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🏆 BestWeb.LK 2026 Celebrates Sri Lanka’s Top Digital Talent

LK Domain Registry marked 16 years of the BestWeb.LK Awards at a grand ceremony held at Monarch Imperial, celebrating benchmark standards across Sri Lanka's digital landscape. • Overview & Key Figures: - Total Awards Presented: 106 awards across 24 distinct categories. - Event Significance: Benchmarks national digital presence as a competitive economic advantage and key driver for national reputation. - Evaluation Process: Incorporates software tools, AI, and an expert judging panel of ICT/BPM professionals, academics, and business leaders. • Overall Best Websites: - Gold: homelandsskyline.lk - Silver: parliament.lk - Bronze: jatholdings.lk • Top Web Developers: - Gold: 3CS - Silver: Web Lankan (Pvt) Ltd. - Bronze: Shanika Rajapaksha

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🏆 Alliance Finance Secures Award Trifecta at NBEA 2026

Alliance Finance Company PLC (AFC) won three major honors at the National Business Excellence Awards (NBEA) 2026, hosted by the National Chamber of Commerce of Sri Lanka: • Gold Award: Excellence in Business and Financial Results (Extra-Large Category) • Gold Award: Excellence in Corporate Governance and Strategy • Runner-Up: Non-Banking Financial Sector • Key Highlights: • Celebrates AFC's strong financial performance, leadership, governance, and long-term sustainable growth strategies. • Demonstrates the growing role of Sri Lanka's non-bank financial sector in integrating Triple Bottom Line (People, Planet, Profit) principles into economic and social development. • AFC remains Sri Lanka’s oldest non-bank financial institution (est. 1956) and the nation's only Sustainability Certified Financial Institution.

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LOLC Finance Wins Gold for Data Management at CRIB Awards 2026 📈

• Key Recognition: LOLC Finance PLC secured the Gold Award for Data Management and Compliance – Data Submission Volume Category 2 at the Credit Information Bureau of Sri Lanka (CRIB) CEO's Forum and Institutional Rating Awards 2026. • Data & Volume Parameters: Category 2 covers financial institutions handling an annual data submission volume of 500,000 to 1,000,000 records. Evaluation was based on accuracy, completeness, consistency, timeliness, and regulatory compliance. • Sector Impact: Highlights operational excellence in Sri Lanka's non-banking financial institutions (NBFI) sector, supporting credit reporting integrity, responsible lending, and overall financial ecosystem stability. • Corporate Profile: The company is rated (SL) A+ (Stable) by Lanka Ratings Agency and operates under the Central Bank of Sri Lanka.

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🏆 THASL Launches Tourism Excellence Awards 2026

The Tourist Hotels Association of Sri Lanka (THASL) has officially launched the inaugural Sri Lanka Tourism Excellence Awards 2026 to elevate local hospitality standards and enhance global competitiveness. • Key Initiative Details • Objective: Recognize top performers and benchmark the tourism & hospitality sector against international quality standards. • Organizers: Spearheaded by THASL—the primary private sector investor with over US$ 15 Bn in industry investments—in partnership with the Sri Lanka Tourism Promotion Bureau (SLTPB). • Target Sectors: SLTDA-registered entities (minimum 3 years registration) including hotels, restaurants, tourism marketers, and service providers. • Evaluation & Timeline • 7 Core Dimensions: Covers guest experience, product quality, innovation, sustainability, financial performance, leadership, and socioeconomic impact. • Governance: Independent judging panel alongside an Advisory and Technical Committee to ensure full transparency. • Applications: Open now until 30 Nov. 2026. • Gala Event: Winners will be crowned at a grand ceremony in January 2027. • Strategic Impact • Aims to counter negative impacts from the unregulated informal accommodation sector by highlighting high-quality formal operators. • Enhances global exposure for local brands through international marketing channels and recognition platforms.

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Seylan Bank Wins Dual Titles at Euromoney Awards 2026 📈

• Key Achievements: Seylan Bank secured two country titles at the Euromoney Awards for Excellence 2026: - Best Bank for Customer Experience (retained for 2nd consecutive year) - Best Bank for SMEs • Strategic Sector Impact: - SMEs: Expanded its loan portfolio with tailored solutions addressing collateral deficits, rising energy costs, and export expertise; offers up to 67% guarantees via National Credit Guarantee Institution partnership. - Renewable Energy: Financed solar adoption for SMEs and agribusinesses through its 'Eco Solar Loan'. - Exports: Provided trade financing and procedure guidance via its 'Export Expert' programme and Pettah Trade Hub. - Women Entrepreneurship: Supported female-owned businesses through the 'Leya Shakthi' initiative. • Digital Innovations: Accelerated digital onboarding with E-KYC, launched Merchant Portal for non-e-commerce businesses, integrated Google Pay acquirer services, and deployed chatbot engagement with an Omnichannel CRM suite.

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Real Estate

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📈 RIUNIT Investor Forum 2026 Spotlights Regional Growth & Real Estate

Diplomats, developers, and financiers convened in Malé on 11 August 2026 for the RIUNIT Investor Forum to explore FDI trends, regional collaboration, and emerging opportunities in the Maldives and South Asia. • Regional Collaboration & Economic Outlook: • Key themes emphasized cross-border investment, infrastructure, digital commerce, food/energy security, maritime connectivity, and tourism over regional competition. • Keynote address called for innovation-led capital in non-tourism sectors, including sustainable infrastructure, renewable energy, healthcare, and the blue economy. • Sri Lankan real estate presence highlighted via Home Lands Group alongside regional diplomatic leadership. • Maldives Real Estate & Housing Dynamics: • Massive expansion in Hulhumalé apartment supply: total units rose from 656 (2016) to 7,102 (2023). • High-end residential growth: luxury and semi-luxury apartment stock surged from under 500 units (2015) to over 3,000 (2023). • Property valuation surge: top-end transaction prices appreciated from ~$135 per sq. ft. (2016) to ~$230 per sq. ft. (2024). • Infrastructure impact: Sinamalé Bridge cited as a critical catalyst driving real estate valuations and investor confidence. • Key market drivers: demand for Islamic finance, land availability, project financing, and policy stability. • Forum Partners: • Supported by Maldives Islamic Bank, Amãna Takaful, Home Lands Group, HDC, MCDGI, RCC Maldives, and media partner NTV.

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Orion City Launches Orion Tower II to Elevate Sri Lanka’s ICT/BPM Infrastructure 📈

• Project Overview: Orion City officially announced the commencement of construction for Orion Tower II in August 2026, targeting completion by January 2029. • Key Features & Capacity: Delivers ~300,000 sq. ft. of Grade A office space. Integrates with Orion Tower I for a combined floor plate of ~36,000 sq. ft. featuring 180-degree Colombo views and flexible, column-free floor plans. • Sustainability & Design: Designed by DP Architects Singapore to target LEED Platinum Certification, reinforcing eco-friendly workplace standards. • Ecosystem & Facilities: Expands Orion City's integrated hub, offering flexible workspaces, childcare, EV charging, fitness, dining, and retail services to support local and foreign ICT/BPM enterprises.

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🏛️ Cabinet Approves Revised Rs. 25.6 Bn Agreement for Sethsiripaya Phase III

• Project Overview: The Cabinet approved a revised contract worth Rs. 25.58 Bn with M/s Maga Engineering Ltd. to complete remaining construction on Sethsiripaya Stage III. The project was initiated by the Urban Development Authority (UDA) to expand state administrative office space. • Cost Revision & Breakdown: - Original Estimated Capital Expenditure: Rs. 16.7 Bn (commenced in 2021). - Revised Total Project Cost: Rs. 38.48 Bn (includes past costs, remaining work, taxes, and other expenses). - Remaining Works Contract: Agreed at Rs. 22.76 Bn (excluding completed work value, payables, contingencies, and taxes). • Key Context & Timeline: Construction halted after completing three floors due to economic instability, material shortages, import restrictions, and rising construction sector costs. The project is now being expedited to meet office space demands. • Financing & Allocation: Funding will be shared by allocated institutions according to space usage, including the Energy Ministry, Inland Revenue Department (IRD), State Pharmaceuticals Corporation (SPC), and the UDA.

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📈 Ruwanpura Expressway Approval Set to Surge Real Estate Demand

Approval for the procurement of Phase 1 of the Ruwanpura Expressway (Kahathuduwa to Ingiriya) is expected to significantly boost land values along the corridor, according to LankaPropertyWeb (LPW). • Historical Performance (2017–2025): • Ingiriya: Average land asking price surged from Rs. 49,363 to Rs. 344,850 per perch, a 598.59% (7-fold) increase. • Padukka: Recorded a 151.30% growth. • District Comparisons: Outperformed Kalutara District (+123%) and Colombo District (+66.90%) averages. • Investment Returns: Outpaced the current average 12-month commercial bank fixed deposit rate of ~9.04% p.a. • Key Projected Growth Areas: • Primary Beneficiary: Ingiriya is positioned as the next major growth market at the Phase 1 endpoint. • Adjoining Corridors: Demand to strengthen in Polgasowita, Gonapola, Horana, and the interchange hub Kahathuduwa. • Future Regional Expansion: Activity expected to spread toward Kuruwita, Ratnapura, Pelmadulla, Balangoda, Belihuloya, Bandarawela, Ella, and Badulla under later phases. • Economic Impact: • Infrastructure-led connectivity reduces travel times to Colombo, driving residential, commercial, and mixed-use developments. • Offers long-term capital appreciation for property owners, developers, and investors seeking affordable Colombo alternatives.

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📈 Colombo Land Valuation Indicator Rises 5.9% in H1 2026

Sri Lanka’s Central Bank reports that the Land Valuation Indicator (LVI) for the Colombo District increased by 5.9% YoY during the first half of 2026, maintaining a moderate growth pace compared to H1 2025. • Overall Growth: LVI and all three sub-indicators expanded both year-on-year (YoY) and compared to the second half (H2) of 2025. • Sub-Indicator Breakdown (YoY): • Residential LVI: Up by 6.7% (leading overall growth) • Commercial LVI: Up by 5.7% • Industrial LVI: Up by 5.2% • Sequential Trend: Growth rates for both residential and industrial real estate segments accelerated compared to the increases recorded in H2 2025, signaling steady demand in key urban property sectors.

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🏢 Tilko Blue Ocean Signs BOI Agreement for Jaffna’s Tallest Residential Tower

Tilko Blue Ocean Holdings (Pvt) Ltd. has signed an agreement with the Board of Investment of Sri Lanka (BOI) to construct 'Yarl Royal Palace' in Jaffna, marking a major milestone for real estate and regional development in Northern Sri Lanka. • Project Overview: Located at No. 107, Kandy Road, overlooking Old Park, the project is set to become the tallest residential landmark in the Northern Province. • Development Scale: Features 19 levels in total—including 6 parking levels and 13 residential floors housing 78 premium units. • Economic Impact: Drives regional growth across construction, engineering, logistics, and property management while expanding urban infrastructure and local employment outside the traditional Colombo hub. • Diaspora Capital: Designed as a bridge to attract long-term investment from the global Sri Lankan diaspora (UK, Canada, Australia, Europe) into Northern property markets. • Strategic Significance: Highlights private-sector confidence and signals expanding opportunities in Sri Lanka's regional construction and urban development ecosystems.

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🏢 CVU Colombo Forum 2026 Tackles High-Rise Safety & Resilience

The Council on Vertical Urbanism (CVU) Sri Lanka Chapter hosted the Colombo Forum 2026, gathering local and international experts under the theme “Design to Survive: Tall Buildings in an Age of Global Instability” to address rising physical, technological, and geopolitical risks facing vertical urban centers like Colombo. • Key Industry Focus & Technical Highlights: • Urban Infrastructure & Planning: Stressed a 25-year forward-looking strategy to protect tall structures from evolving threats, including climate risks, geopolitical tensions, and drone hazards. Emphasized integrated 3D urban design. • Construction & Steel Systems: Experts noted composite steel systems dominate the world’s 100 tallest buildings. Reusing structural steel reduces embodied carbon emissions to near-zero (carrying just 1% of traditional steel production emissions)—crucial as structural floors account for ~70% of a building's embodied carbon. • Protective Engineering: Highlighted mathematical risk-based blast protection, emphasizing optimal perimeter defenses (e.g., 10-11m standoff distances offering a 6:1 benefit-to-cost ratio). • Key Milestones & Initiatives: • International Launch: Officially launched the IAPS Sri Lanka Chapter (led by Prof. Ranjith Dissanayake) to strengthen resilience against structural hazards, coastal threats, and cyclones. • Technical Standards: Unveiled technical manuals including the "Design Calculation Manual - Reinforced Concrete High-rise Building Design" to assist peer-reviewed local engineering, notably for Colombo Port City developments.

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🏛️ Govt. Invites Bids to Commercialise Heritage Bungalows in Colombo 5

• Transaction Overview The Ministry of Finance, Planning and Economic Development has called for Expressions of Interest (EOIs) to unlock the value of prime State-owned heritage bungalows in Colombo 5. The properties will be offered via a transparent National Competitive Selection Process on 30-year lease agreements, while full ownership of land and buildings remains with the Government. • Property Scope & Locations The portfolio includes architecturally distinctive properties situated in one of Colombo's most sought-after residential and commercial precincts: - Stanmore Crescent, Colombo 5 - Paget Road, Colombo 5 - Skelton Road, Colombo 5 • Target Sectors & Sectoral Impact The initiative forms part of a broader national strategy to stimulate private investment, revitalise underutilised public assets, and expand tourism infrastructure. Key operational concepts invited include: - Boutique hospitality and heritage accommodation - Signature fine dining, cafés, and lifestyle establishments - Premium tourism-oriented retail concepts catering to local and international visitors • Submission Guidelines & Timeline Proposals will be evaluated independently for each property, allowing investors to submit bids for single or multiple locations. - Property Inspection Date: 12 August 2026 at 10:00 AM - Proposal Deadline: 25 August 2026 - Guidelines: Available via the Finance Ministry official portal

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📈 Govt. Eyes 2027 Budget to Revive ~5,000 Stalled Housing Projects

• Overview: The Government of Sri Lanka is considering funding allocations under the 2027 Budget to complete nearly 5,000 abandoned housing units initiated under previous administrations. • Review & Assessment: • Projects were previously stalled due to non-disbursement of allocated loans and grant funding. • A five-member committee, co-chaired by two former Ministry Secretaries, is assessing project viability and identifying units immediately suitable for occupation. • Final decisions on project completion will depend on the committee's report. • Family Assistance & Sector Support: • A separate financial support program will launch next year to assist 2,000 families in completing partially built homes. • Special stakeholder meetings will address targeted initiatives, including low-income urban housing in the Colombo District. • Economic Context: This move aims to expand national housing stock and revitalize the housing & construction sector by utilizing existing unfinished assets.

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Rs. 20Mn Viewing Platform Project Begins at Dunhinda Falls 📈

• Infrastructure Investment: Construction on a new observation platform at the iconic Dunhinda Falls in Badulla commenced on July 27, 2026, backed by an investment of Rs. 20 million. • Sector Impact: The project aims to boost tourism infrastructure by providing a safer, modernized viewing experience for local and foreign visitors in the Uva Province.

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Uncategorized

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Verdict on 2019 Easter Sunday Attacks Case Fixed for 22 Sept ⚖️

• Key Highlights: The Colombo Permanent Trial-at-Bar will deliver its verdict on 22 September 2026 regarding the 2019 Easter Sunday terror attack case involving 25 accused individuals, including Naufer Moulavi. • Legal Scope: The Attorney General has filed 23,270 charges against the accused under the Prevention of Terrorism Act (PTA), covering conspiracy, aiding and abetting, weapons collection, and attempted murder. • Background & Context: The case stems from the coordinated 21 April 2019 suicide bombings on churches and luxury hotels, which resulted in over 270 deaths and injured hundreds—severely impacting Sri Lanka’s national security and tourism sector.

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🕯️ In Memory: Anthropological Assessment of Prof. Wimal Dissanayake’s Cinema Legacy

An anthropological critique evaluates the extensive legacy of the late communications scholar Prof. Wimal Dissanayake (1939–2026), focusing on his post-colonial cultural framework Enabling Traditions (2005) and its application to Sri Lankan and South Asian visual media. • Academic Impact: Highlighted heritage as a dynamic tool for indigenous identity and intellectual autonomy rather than a regressive obstacle. Challenged Eurocentric hegemony in film analysis by applying classical Eastern concepts like Rasa (aesthetic flavor) and Dhvani (suggestion) to evaluate directors such as Lester James Peries and Satyajit Ray. Positioned South Asian cinema as a vehicle for communities to process rapid capitalistic modernization. • Key Analytical Limitations: Textual Essentialism: Relied heavily on high classical texts, elite canonical histories, and Sanskritized models, which risks overlooking internal power hierarchies, caste fractures, and subaltern realities. Marginalized Perspectives: Failed to fully capture how lower-caste and subaltern groups often use creative media to dismantle traditional structures rather than find aesthetic harmony within them. Material & Industrial Gaps: Downplayed structural realities such as corporate financing, state censorship, and market distribution networks that govern cultural production. Post-Colonial Paradox: Relied on Western critical theorists (e.g., Walter Benjamin) to validate indigenous frameworks, raising questions about whether the approach truly achieves local intellectual autonomy. • Overall Assessment: While foundational in rescuing Asian cinema from Eurocentric views, scholars note Dissanayake's text-centric models must be balanced with field-based ethnographic research to reflect the material realities of everyday folk life.

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🕯️ Parliament Pays Tribute to Music Icon Dr. Nanda Malini

• National Loss: Sri Lankan Parliament observed a minute's silence to honor veteran music icon Dr. Nanda Malini, who passed away at the age of 82. • Government & Opposition Tribute: Prime Minister Dr. Harini Amarasuriya and Opposition Leader Sajith Premadasa praised her nearly seven-decade career, recognizing her immense contributions to Sri Lankan music, culture, social justice, and democracy. • Career Highlights: Debuted in cinema music via 'Ran Muthu Doova' under Dr. W.D. Amaradeva; widely celebrated for her impactful social discourse through works such as 'Pavana' and 'Sathyaye Geethaya'. • Final Rites: Public respects at her residence in Nawala; cremation scheduled for 5:00 p.m. tomorrow at the Borella Cemetery without a formal funeral ceremony, honoring her final wishes.

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Sri Lanka Declares 3-Day National Mourning Following Passing of Veteran Musician Nanda Malini

• National Observance: The Government of Sri Lanka has officially declared a three-day national mourning period from 21 to 23 August following the passing of renowned singer Visharada Nanda Malini. • Public Homage: Remains will lie at her residence on Wijayaba Mawatha, Nawala, starting today from 10:00 a.m. for the public to pay their final respects. • Funeral Details: Religious ceremonies are scheduled for 3:30 p.m. tomorrow (22 August), with final rites taking place at 5:00 p.m. at the Borella General Cemetery. • Final Wishes: In adherence to her final wishes, the family confirmed that the cremation will proceed without an official state funeral ceremony.

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6th JXG-MHA 9-A-Side Hockey Tournament Set for 22 Aug 👍

• Overview: The 6th edition of the JXG-MHA 9-A-Side Hockey Tournament, sponsored by Janashakthi Group and organized by the Mercantile Hockey Association (MHA), will take place on 22 August at Astro Turf, Colombo 7. • Participation: The event brings together 16 corporate teams across three divisions to drive sports engagement in the corporate sector, featuring national-level players and emerging talent. • Divisions & Key Teams: • Division A: Defending champion Hatton National Bank (HNB), Seylan Bank, Sampath Bank A, Commercial Bank, Hayleys, and apparel & textiles giant MAS Holdings. • Division B: CIAP, Nations Trust Bank, and Browns & Company. • Division C: David Pieris Motor Company, John Keells Holdings, Singer (Sri Lanka), Future Life Holdings, Hemas Holdings, InQube Global, and Sampath Bank B. • Previous Edition Results: In the 5th edition, HNB won the Division A title against Sampath Bank, Browns & Company claimed Division B over Hayleys, and Nations Trust Bank took Division C against David Pieris Motor Company. • Event Details: Matches begin at 8:30 a.m. with live coverage on the MHA Facebook page and Sri Lankan Sports TV YouTube channel.

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Suspected Drug Trafficker Shiran Basik Extradited from Dubai to Sri Lanka ⚖️

• Key Action: Sri Lanka Police secured a 72-hour detention order against 48-year-old Shiran Basik following his arrest in Dubai and return to the country on August 14. • Background & Context: Suspected of being a major pharmaceutical & drug trafficking operative, his apprehension aligns with ongoing national security efforts to dismantle illicit trade networks impacting Sri Lanka's domestic safety and national economy.

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⚠️ Notice: Summary Unavailable

• Status: Unable to generate summary based on provisional network status. • Details: The source content from FT.lk could not be retrieved due to a connection timeout.

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📈 Sri Lankan Business News Update

• Data Status: Unable to process summary due to incomplete input data. • Issue: Article content from ft.lk could not be retrieved due to a connection timeout error on August 15, 2026. • Note: Update pending receipt of valid news content.

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⚠️ Data Unavailable: Could Not Extract Report

• Status: The attempt to retrieve the requested Sri Lankan business news content failed due to a connection timeout (_www.ft.lk_). • Impact: Detailed data, market performance metrics, and sector breakdowns are currently unavailable. • Note: This update is based on provisional technical error logs as of 14 August 2026. Please provide the article text directly for a complete summary.

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📈 Error Reporting: Unable to Retrieve Latest Sri Lankan Business News

• Status: The connection to the news source (_www.ft.lk_) timed out during content extraction. • Details: Failed to retrieve full text due to an HTTPS read timeout error as of 14 August 2026, 05:07 AM. • Note: Market and economic data summary is unavailable due to incomplete source data.

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⚠️ Unable to Generate Summary: Data Extraction Error

• Status: Content extraction from the source (_www.ft.lk_) timed out. • Details: No article content or financial data was retrieved. _Please provide the news text or try again shortly based on provisional data availability._

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⚠️ Data Retrieval Error: Sri Lanka Business & Economic News

• Status: Unable to generate news summary based on provisional network status. • Details: Failed to extract content from _www.ft.lk_ due to a connection timeout at 2026-08-13 08:11:05. • Note: Please provide alternative text or retry the data feed to obtain the latest updates on key sectors like tea, apparel & textiles, and ICT/BPM.

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Financial & Investment News

Govt Targets Fresh US$ 4.1 Bn Investment into Port City Colombo 📈

• Overall Investment Target: The Government is aiming for an additional US$ 4.1 Bn in investments over the next 5 years, adding to US$ 2.1 Bn already confirmed. • Key Industry Investors: Key players operating in the Special Economic Zone (SEZ) include: • ICT/BPM: IGT1 for BPO/BPM services. • Apparel & Textiles / Global Operations: Ansell. • Global Shared Services: Horizon Group USA. • Offshore Professional Services: KPMG. • Logistics Back-Office: GAC Services. • Infrastructure Developments: Projects underway include 2 residential developments, 3 mixed-development projects, a hotel, and a convention centre. • Revised Tax Framework: • Primary Businesses: Income tax holidays up to 15 years. • Secondary Businesses: Concessionary corporate income tax rate of 7.5% for 4 years. • Competitive Edge: Beyond incentives, investments are driven by high-speed internet, strategic location, international market access, and a lower cost of living compared to Dubai or Singapore. • National Impact: Investments into Port City are supplementary to foreign direct investment coming via the Board of Investment (BOI).

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🇱🇰 Invest Sri Lanka Investor Forum Sydney Draws Foreign & Diaspora Capital 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) hosted the "Invest Sri Lanka" Investor Forum on 17 August 2026 in Sydney to showcase the island's economic recovery and pitch capital market growth to foreign fund managers and the Sri Lankan diaspora. • Key Highlights & Credit Outlook: - Credit Ratings: Central Bank Governor Dr. Nandalal Weerasinghe noted all three major international agencies rate Sri Lanka at CCC, with a clear pathway toward an upgrade to B- as macroeconomic confidence improves. - Regional Advantage: Sri Lanka is positioning itself as an "India Plus One" platform for logistics, services, and manufacturing. - Foreign Investment Account (IIA): HNB confirmed Inward Investment Accounts (IIA) for overseas investors now process within 2 to 3 working days via streamlined documentation. - Port City Colombo: Allows investment in foreign currencies (e.g., AUD) with relaxed capital account regulations for cross-border capital flow. • Structural Reforms & Investment Avenues: - Focus on SOE restructuring, fiscal discipline, institutional reforms, and digital transformation. - Key opportunities emphasized in brownfield projects, venture capital, and broader capital market participation across South Asia. - Part of an ongoing Australian roadshow series running from 17–20 August 2026.

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📈 MBSL Bolsters Capital Base via Rs. 806 Mn Rights Issue

• Capital Raising: Merchant Bank of Sri Lanka & Finance PLC (MBSL) successfully completed its Rights Issue in August 2026, raising Rs. 806 million in fresh capital. • Strategic Focus: • Strengthens the overall capital base and boosts capacity for core business growth. • Supports prudent capital management, financial resilience, and long-term shareholder value creation.

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📈 M.A. Yaseen Invests Rs. 5 Bn in UML and RIL

• Investment Breakdown: Founder shareholder M.A. Yaseen invested Rs. 5 billion to increase stakes in United Motors Lanka PLC (UML) and R I L Property PLC (RIL) based on provisional data. • UML Acquisition: Paid Rs. 3 billion to acquire an 11.3% stake (114 million shares at Rs. 27 each) from R.R. Takahashi, raising his total holding in the automotive firm to 24%. UML share price closed at Rs. 27.10 (up Rs. 0.10). • RIL Acquisition: Invested Rs. 2 billion for a 10.6% stake (85 million shares at Rs. 24 each), crossing his personal holding to 41% in the real estate company. RIL share price closed at Rs. 25.90 (up Rs. 0.50).

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7. Regulatory & Policy News

🛡️ Sri Lanka Cyber Readiness: Tackling "Dark Data" & Fraud Ahead of 2027 PDPA

The 2nd Data Privacy and Protection Summit 2026 convened over 380 industry leaders to address critical cybersecurity vulnerabilities, dark data, and the role of AI-driven defenses in Sri Lanka's digital economy. • Rising Cyber Threat & Fraud Metrics • Estimated card-not-present fraud losses jumped 149% from 2025 to reach US$ 49 Bn across the Asia Pacific region. • Nearly 60% of data breaches stem from unmanaged, forgotten "dark data" systems. • Global average cost of a data breach reached US$ 4.8 Mn in 2024, with 75% of consumers refusing to transact with breached firms. • High-Risk Sectors & Attack Vectors • 70% of cyberattacks target three foundational pillars: ICT/BPM (technology), financial services, and the government sector. • Primary threats targeting local entities: Malware, email phishing, ransomware, and reconnaissance. • Key targets include customer financial data, personally identifiable information (PII), business systems, and intellectual property. • Strategic Imperatives for Sri Lanka • Upcoming enforcement of Sri Lanka's Personal Data Protection Act (PDPA) on 1 January 2027 makes data governance a critical strategic priority. • Adoption of AI-powered security is key to automatically discovering, classifying, and securing unstructured sleeping data across banking and connected payment networks.

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**Awards & Recognitions**

Commercial Bank Named Sri Lanka’s Strongest Banking Brand 2026 📈

Commercial Bank of Ceylon has retained its title as Sri Lanka’s Strongest Banking Brand in Brand Finance’s '100 Most Valuable Brands 2026' report. • Brand Performance & Valuation: • Ranked the 2nd Most Valuable Brand overall in Sri Lanka. • Brand value increased by 17.8% YoY to Rs. 54.9 Bn (up from Rs. 46.6 Bn). • Earned a Brand Strength Index (BSI) score of 87/100 with a AAA rating. • Market Position & Reach: • Operates over 270 branches island-wide alongside specialized Agriculture & Micro Finance Units (AMFU). • First Sri Lankan bank to cross $ 1 Bn in market capitalization. • Holds the highest capital base among Sri Lankan banks and is the largest private sector lender. • Ranked No. 1 Sri Lankan bank in The Banker Top 1000 World Banks 2026. • International Footprint: • Operates 21 branches in Bangladesh, a majority stake in a Tier-I bank in Maldives, a microfinance unit in Myanmar, and a rep office in DIFC (Dubai). • Sustainability & Innovation: • Certified as Sri Lanka's first 100% carbon-neutral bank and leads in digital banking.

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Awards & Recognitions [National Business Excellence Awards -2026](https://m.youtube.com/watch?v=6KqeSQAMjVI) This video coverage highlights the ceremony and honors received by Sri Lanka's leading business enterprises at the National Business Excellence Awards 2026.

🏆 National Business Excellence Awards 2026 Honours Top Sri Lankan Enterprises 📈

The National Chamber of Commerce of Sri Lanka (NCCSL) concluded the 21st edition of the National Business Excellence Awards (NBEA) 2026 at Shangri-La Colombo, celebrating corporate resilience and performance. • Overall Winners: • 🥇 Gold Award: People’s Bank • 🥈 Silver Award: Citizens Development Business Finance PLC • 🥉 Bronze Award: JAT Holdings PLC • Event & Participation Highlights: • Over 140 nominees recognized across 31 business sectors and categories. • Evaluated transparently by an expert panel led by Ernst & Young FAAS partner Rajith Perera and co-chaired by Snr. Prof. Ajantha Dharmasiri and Lasantha S. Salgado. • Graced by Chief Guest, H.E. Rémi Lambert, Ambassador of France to Sri Lanka and the Maldives. • Key Focus: • Benchmarking organizational growth in corporate governance, sustainability, innovation, and leadership. • Supporting national economic development by driving competitiveness across key corporate and financial sectors. --- This video provides additional context on People's Bank being recognized as the overall Gold winner at the National Business Excellence Awards 2026: [People's Bank NBEA 2026 Gold Award Presentation](https://m.youtube.com/watch?v=6KqeSQAMjVI)

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🚨 Demolitions Disrupt Ahangama Tourism Hub

• Enforcement Action: Several high-profile tourism establishments—including Gelato, Crust, Marshmallows, Ceylon Sliders, Uncle’s, and Cactus—are being demolished in Ahangama as unauthorized structures. • Economic & Local Impact: These popular venues were instrumental in transforming the southern coastal town into a prime hotspot, driving foreign arrivals, domestic travel, and supporting broader local livelihoods and hospitality earnings. • Industry Concerns: While stakeholders acknowledge the legal enforcement, they warn that the sudden scale of removals threatens Ahangama's unique brand, regional investment, and visitor appeal without a broader management plan to protect the local tourism economy.

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Product & Service Launches / Business Expansions [MasterChef Sri Lanka Official Hospitality Partner Video](https://www.youtube.com/watch?v=yy5z6NYKgj0) This video highlights Cinnamon Hotels and Resorts' involvement in major international culinary initiatives and hospitality events, reflecting their strategic efforts to expand Sri Lanka's global profile.

### Cinnamon Hotels Partner with Chef Guild Lanka for Worldchefs Congress 2030 Bid 📈

Cinnamon Hotels and Resorts has entered a strategic partnership with Chef Guild Lanka to jointly bid to host the prestigious Worldchefs Congress 2030 in Sri Lanka. • Key Highlights & Strategic Initiatives Event Announcement: Unveiled during the launch of Cinnamon Box Office, a new digital booking and events platform. Bid Focus: Aimed at bringing thousands of international chefs, educators, and culinary leaders to Sri Lanka for one of the world's premier hospitality gatherings. MICE Growth Strategy: Complements existing efforts like the Sri Lanka Conference Ambassador Program (SLCAP), established with the Sri Lanka Convention Bureau and SriLankan Airlines to elevate local bidding capabilities. • Economic & Sector Impact National Alignment: Direct support to expanding Sri Lanka’s MICE (Meetings, Incentives, Conferences, and Exhibitions) ecosystem, driving higher hotel occupancy, delegate arrivals, and global destination exposure. Venue Capabilities: City of Dreams Sri Lanka serves as a focal integrated hub designed to host world-class international scale events.

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Sustainability, ESG & Corporate Responsibility [Highlights of the Beach Clean-up Programme](https://www.youtube.com/shorts/pqIAYUD3_5o) This video provides visual coverage of the Bank of Ceylon beach clean-up initiative at Palangaturai Beach in Negombo mentioned in the news text.

🌊 Bank of Ceylon Drives Coastal Sustainability with Negombo Beach Cleanup

• Environmental Sustainability: Bank of Ceylon (BOC) launched a major beach cleanup initiative at Palangaturai Beach, Negombo, driven by its Sustainable Banking Unit to support long-term coastal conservation. • Multisectoral Collaboration: Key government and corporate stakeholders joined the effort, including the Department of Coast Conservation and Coastal Resource Management, MEPA, Sri Lanka Air Force, Sri Lanka Police, Ernst & Young (EY), Biodiversity Sri Lanka, and the local Hotel Owners’ Association. • Community & Leadership Engagement: The initiative mobilized local volunteers, schoolchildren from Harischandra National School, and students from Ocean University, led on-site by BOC General Manager/CEO Y. A. Jayathilaka and COO R. M. N. Jeewantha alongside executive management and branch staff.

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**Politics & Government Impact**

📈 Government Approves Processing of 30,000 Tons of PMB Paddy into Rice

• Overall Action: The Cabinet has approved a joint proposal by the Ministry of Agriculture and Ministry of Trade to convert 30,000 tons of paddy Marketing Board (PMB) stocks into processed rice. • Procurement & Processing Details: • The Co-operative Wholesale Establishment (CWE) will call for Expressions of Interest (EOIs) from PMB-registered rice millers. • A multi-agency Special Price Committee will set the official paddy-to-rice conversion ratio and final pricing. • Market Distribution: • Rice will be packaged in 5 kg, 10 kg, 25 kg, and 50 kg sizes. • Supply will be distributed to consumers via Lanka Sathosa outlets, cooperative networks, and private retail channels. • Economic Impact: The move aims to stabilize market food security, release existing stocks to consumers, and create crucial storage capacity for upcoming national paddy procurement initiatives.

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Startups & Entrepreneurship

📈 EDB Drives Digital Pathways for Women Exporters

• Initiative Overview: The Sri Lanka Export Development Board (EDB), operating through the SheTrades Sri Lanka Hub, conducted an awareness programme titled "Using Social Media for Export Marketing" at the Divisional Secretariat Office, Panadura. • Knowledge & Capacity Building: Partnering with knowledge partner Foundation.lk, the event provided practical expertise in digital marketing, online business development, and social media tools to strengthen women-led enterprises and enhance their online visibility. • Market Reach & Export Growth: Targeted at women entrepreneurs seeking international expansion, the programme focused on using digital channels to connect with potential global customers, access foreign markets, and build readiness for export marketing and trade.

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🌱 EthicalX Opens Applications for 2026 Climate Innovation Cohort

EthicalX: Climate & Innovation Hub, a global initiative by Clima Trust and SLYCAN Trust, has officially opened applications for its 2026 cohort and affiliate network. Announced at the EthicalX Entrepreneurship Gathering in Colombo on August 6, 2026, the program aims to scale ethical and sustainable ventures in Sri Lanka and globally. • Overview & Key Focus: • Target sectors: Sustainable food systems, fashion & lifestyle, and creative communication. • Structure: Offers mentorship, technical support, policy linkage, and global networking opportunities. • Funding: Financial support for selected ventures, including lifestyle startups via a partnership with c.fuge. • Addressing Ecosystem Challenges: • Aims to bridge critical growth hurdles for early-stage Sri Lankan enterprises, such as limited access to finance, market restrictions, and gaps in technical expertise. • Connects grassroots entrepreneurs directly with public/private sector stakeholders and policymaking processes. • Track Record & Ecosystem Impact: • Founded in Sri Lanka in 2022, EthicalX has expanded globally to foster climate action, local economic empowerment, and sustainable diversification. • Supported alumni include local startups like Star Mushrooms and Eastern Soy Products, leveraging the hub for scaling and product development.

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📈 Ceylon Chamber to Host "Scale Up 2.0" National SME Forum 2026

The Ceylon Chamber of Commerce will host "Scale Up 2.0", the National SME Forum 2026, on 11 August 2026 at the Taj Samudra, Colombo, under the theme "Connected, Competitive, Ready to Grow". • Event Focus & Key Objectives: The forum is designed to address pressing operational challenges facing Sri Lanka's Small and Medium Enterprises (SMEs), helping them scale operations, secure financing, and expand market access. • Core Focus Areas: • Market Access: Creating pathways for SMEs to connect with larger enterprises and integrate into local and global value chains. • Standards & Competitiveness: Improving process credibility through quality standards and official certifications. • Sustainable Expansion: Enhancing investment readiness, business practices, and access to appropriate financing options. • Platform & Networking: • Features participation from policymakers, industry leaders, financial institutions, and business support organizations. • Includes a dedicated B2B networking segment for direct corporate engagement, partnership exploration, and resource sourcing.

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📈 MAS Holdings Backs Syntetica’s $30M Series A for Nylon Recycling

French deep tech startup Syntetica secured US$ 30 Mn in Series A funding to scale technology for recycling complex textile waste. The investment round was led by Bpifrance’s Ecotechnologies 2 fund, with participation from Sri Lankan apparel & textiles giant MAS Holdings, lululemon, SWEN Capital Partners, EQT Ventures, and key family offices. • Funding & Expansion: The US$ 30 Mn round will fund Syntetica's first commercial demonstration facility in France in partnership with Michelin. The plant will scale the process from laboratory testing to processing hundreds of tonnes of textile waste annually. • Technical Breakthrough: Syntetica developed a proprietary process to recycle both Nylon 6 and Nylon 6,6 together from mixed waste without prior separation, overcoming a major technical hurdle in apparel & textiles circularity. • Market & Sector Relevance: - Global nylon production reached ~7 million tonnes in 2024, but recycled nylon accounts for only ~2% of the market due to processing challenges. - Over 80% of household textile waste is currently incinerated or landfilled. Syntetica targets post-consumer waste to build circular supply chains. - MAS Holdings leverages its manufacturing expertise to scale circular material solutions, reinforcing Sri Lanka's positioning in sustainable global apparel & textiles supply chains.

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Chalinda Abeykoon: Building Sri Lanka’s Global Startup Ecosystem 📈

• Overview: Venture capitalist Chalinda Abeykoon, co-founder at nVentures, highlights the evolution of Sri Lanka’s ICT/BPM and startup ecosystem—from early government-led initiatives to cross-border venture capital investments. • Startup Evolution: • Started Spiralation, Sri Lanka’s first tech startup incubator at ICTA, aiding ~75 tech companies in securing quality certifications and training 25,000+ students in international certifications. • Organized early island-wide hackathons, connecting youth across Jaffna, Kandy, and the South to foster local talent. • Investment Strategy & Exits: • Currently manages Singapore-domiciled VC fund nVentures to facilitate institutional exits, governance, and foreign capital inflows. • Focuses on founder-market fit and high-growth potential over traditional metrics. • Enables local startups to build globally relevant software and AI products directly from Colombo. • Creating a sustainable funding cycle: early founders from Fund 1 are now reinvesting as LP investors in Fund 2 to build local wealth.

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Politics & Government Impact [Former BASL President claims proposed amendment aims to retain select judges for two more years](https://www.youtube.com/watch?v=pna81INtIx8) This video provides additional context from a former BASL president regarding concerns over the proposed constitutional amendment to extend judicial tenure.

No Consensus Between President and BASL on Proposed 22nd Amendment ⚖️

• Meeting Overview: President Anura Kumara Dissanayake met a 20-member delegation from the Bar Association of Sri Lanka (BASL) led by President Rajeev Amarasuriya to discuss the proposed 22nd Amendment regarding extending judges' retirement age. The nearly hour-long meeting concluded without reaching an agreement. • Government's Position: The President stated that extending judges' tenure is part of a broader, public-interest reform to enhance judicial efficiency. Key structural plans include: • Expanding CIABOC services to the district level. • Increasing the number of Court of Appeal and High Court judges, with regional Court of Appeal sittings. • Strengthening human resources across the Attorney General’s Department, Sri Lanka Police, and Government Analyst’s Department. • BASL's Concerns: The BASL strongly urged the government not to proceed with the amendment, warning that it severely threatens the independence of the judiciary. While expressing no objection to increasing judge counts, the BASL emphasized that tenure extension lacks demonstrated necessity, calling for broader consultations via a Parliamentary Select Committee before moving forward.

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Global & International Business [The World View From India with Dr. Raja Mohan](https://www.youtube.com/watch?v=7Vf9U7f9kKA) This video features Dr. C. Raja Mohan discussing India's evolving economic policy, regional relationships, and geopolitics in an increasingly fragmented global landscape.

India Catching Up to Sri Lanka on Per Capita Income, Says Prof. Raja Mohan 📈

• Key Income Comparison: Sri Lanka maintains a per capita income of US$ 5,000 compared to India's US$ 2,800, according to geopolitics expert Prof. C. Raja Mohan. • Economic Scale vs. Income: While Sri Lanka leads on individual income levels, India's sheer market size gives it greater overall economic weight and global impact. • Supply Chain Shift: As global supply chains fragment, regional cooperation becomes critical over traditional proximity, focusing on long-term costs, capital, and equity. • Priority Sectors: Cooperation in artificial intelligence and regional security offers major potential to build workforce resilience and leverage synergies between both nations.

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Politics & Government Impact [How India's Cockroach Party Sparked a Protest Movement](https://www.youtube.com/watch?v=C9MRKiKs06o) This video provides context on the origin of the Cockroach movement in India and examines its political impact and broader implications for youth activism across South Asia.

India’s Cockroach Movement: Key Governance & Youth Lessons for South Asia 📈

• Movement Context & Scale India’s youth-led Cockroach Movement evolved from public outrage over alleged paper leaks in the National Eligibility cum Entrance Test (NEET), taken by over 2 Mn students annually for 130,000 medical seats. Demonstrations pushed Union Education Minister Dharmendra Pradhan to resign, prompting the government to announce system-wide reforms. • Gen Z Mobilization & Digital Impact Spurred by India’s Gen Z population (over 500 Mn), the campaign shifted rapidly from digital social platforms to physical street protests in major cities. Highlights how digital connectivity lowers collective action barriers, forcing faster institutional responsiveness across South Asia. • Key Lessons for Regional Governance Meritocracy: Safeguarding fair competition in education is crucial for social mobility and preventing public discontent. Institutional Trust: Public credibility relies on execution; trust lost through examination irregularities is difficult to restore. Digital Democracy: Social media allows rapid public mobilization, making open government communication and listening vital to democratic legitimacy. • Relevance to Sri Lanka South Asia’s under-30 demographic makes up over 50% of its nearly 2 Bn population, forming the future workforce and consumer base. Sri Lanka’s educated youth share similar expectations for transparent public administration, education, and economic governance, emphasizing youth as partners in stability.

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Awards & Recognitions [National AI Awards 2026 Overview](https://www.youtube.com/watch?v=PaJr_GtaZLM) This video provides an official overview and call for applications for Sri Lanka's National AI Awards 2026.

🤖 Applications Open for National AI Awards 2026

• Event & Key Dates: Applications are open until 15 August 2026 for Sri Lanka’s flagship National AI Awards 2026, themed ‘AI Amplified’. The awards ceremony will take place on 4 October 2026 as the highlight of Sri Lanka AI Week. • Organisers & Mission: Pioneered by the Digital Economy Ministry of Sri Lanka alongside SLT-MOBITEL, the event aims to champion innovation, celebrate national benchmarks, and spotlight top achievements across industry, academia, startups, and the public sector. • Key Sector Innovations: The Industry Innovation Awards will recognise groundbreaking AI application across major national economic pillars, including: - Agriculture - Manufacturing and Industry 5.0 - Banking, Finance and Insurance - Education - Healthcare and Life Sciences - Media • Award Categories: Accolades encompass four primary streams: - National AI Trailblazer (Excellence, Leadership, Impact, Export Excellence) - Industry & Sector Excellence - Innovation & Future-Focused (Startups/MSMEs, University AI, Agentic AI, Sinhala/Tamil Localisation, Women in AI Leadership) - AI Content Creators of the Year (Educational, Video/Storytelling, Social Impact, FutureTech, Cultural Heritage & Tourism) This video provides an official overview and guidelines on how local innovators can submit their entries for the National AI Awards 2026 prior to the deadline. [National AI Awards 2026 Submission Guide](https://www.youtube.com/watch?v=PaJr_GtaZLM)

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Economic News [Sri Lanka's President presents Budget](https://www.youtube.com/watch?v=PjSywtCQlx0) This video is relevant because it reports on Sri Lanka's presidential budget announcements and the government's fiscal policy goals.

📈 Govt to Boost Development Spending in 2027 Budget

• Strategic Focus: President Anura Kumara Dissanayake announced plans to prioritize national development spending in the upcoming 2027 Budget. • Fiscal Adjustment: The strategy aims to cut recurrent expenditure to free up resources and significantly expand capital investment across key growth areas.

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