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Politics & Government Impact

The English Trap: Sri Lanka's Linguistic Dilemma in Diplomacy 📈

• Overview: A recent panel at the Raisina Dialogue involving Foreign Minister Vijitha Herath has sparked national debate over the "English Trap"—where Sri Lankan politicians face ridicule for both a lack of fluency and perceived over-fluency in English. • The Incident: During an Indian Ocean regional security panel, the Minister appeared unprepared for specific diplomatic queries regarding Iranian vessels. This led to widespread social media mockery focusing on language skills rather than the substance of the geopolitical discussion. • Sector Impact: • Diplomacy: The incident highlights a critical need for stronger institutional support and briefing protocols within the Foreign Ministry to ensure leaders are ready for global stages. • Education & ICT/BPM: The binary view of English—seen either as a symbol of colonial elitism or a tool for global mobility—stems from historical shifts like the Sinhala Only Act, affecting the country’s human capital development. • Key Comparison: The public reaction mirrors previous criticism of Opposition Leader Sajith Premadasa, who was mocked for using "too much" complex English. This illustrates a lose-lose scenario where language is used as a weapon to bypass actual policy debate. • Conclusion: To maintain professional standards seen in the era of late Lakshman Kadirgamar, the focus must shift from personal mockery to institutional capacity building and systemic improvements in English education.

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Politics & Government Impact

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The English Trap: Sri Lanka's Linguistic Dilemma in Diplomacy 📈

• Overview: A recent panel at the Raisina Dialogue involving Foreign Minister Vijitha Herath has sparked national debate over the "English Trap"—where Sri Lankan politicians face ridicule for both a lack of fluency and perceived over-fluency in English. • The Incident: During an Indian Ocean regional security panel, the Minister appeared unprepared for specific diplomatic queries regarding Iranian vessels. This led to widespread social media mockery focusing on language skills rather than the substance of the geopolitical discussion. • Sector Impact: • Diplomacy: The incident highlights a critical need for stronger institutional support and briefing protocols within the Foreign Ministry to ensure leaders are ready for global stages. • Education & ICT/BPM: The binary view of English—seen either as a symbol of colonial elitism or a tool for global mobility—stems from historical shifts like the Sinhala Only Act, affecting the country’s human capital development. • Key Comparison: The public reaction mirrors previous criticism of Opposition Leader Sajith Premadasa, who was mocked for using "too much" complex English. This illustrates a lose-lose scenario where language is used as a weapon to bypass actual policy debate. • Conclusion: To maintain professional standards seen in the era of late Lakshman Kadirgamar, the focus must shift from personal mockery to institutional capacity building and systemic improvements in English education.

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📈 Geopolitical Tension & The 'Strait' of Sri Lanka's Economy

The escalating conflict between the US-Israel alliance and Iran has moved beyond military skirmishes into a strategic "great game," threatening global energy security and Sri Lanka’s fragile economic recovery. • Energy & Inflation Risks Oil prices have already surged to US$ 114 per barrel. Analysts warn that a blockade of the Strait of Hormuz—where 20% of global oil flows—could skyrocket prices toward US$ 150–200. For Sri Lanka, this translates to: At US$ 110/bbl: Fuel import bill increases by ~US$ 400-500 Mn. At US$ 130/bbl: Additional burden exceeds US$ 700 Mn. At US$ 200/bbl: Potential economic shock of over US$ 1 Bn. • Maritime & Logistics Impact Sri Lanka’s position in the Indian Ocean Region (IOR) is increasingly critical. Recent involvement with Iranian vessels (IRIS Dena and Bushehr) underscores the need for strict "principled neutrality" under international maritime law. Rising shipping insurance premiums and flight re-routing are expected to pressure the logistics and aviation sectors. • Macro-Economic Vulnerabilities The conflict poses a direct threat to: Remittances: Instability in Gulf economies affects the primary source of foreign exchange. Tourism: Global tension and shifting flight paths may dwindle arrivals. Tea: Potential disruption to Middle Eastern markets, a key destination for Ceylon tea. • Strategic Outlook With the economy still under fiscal reforms following bankruptcy, Sri Lanka must leverage its "promoted piece" status as a strategic maritime hub. Maintaining non-alignment is essential to insulate the domestic market from these massive external shocks. _(Based on provisional geopolitical analysis)_

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🚨 Tragic Toll: Nearly 300 Children Reported Killed in Regional Conflict

A recent statement from UNICEF confirms a devastating impact on minors following the escalation of conflict in the Middle East since February 28. Based on provisional data, the agency warns that casualty figures are likely to rise as violence intensifies. • Fatality Breakdown: Iran: 200 children Lebanon: 91 children Israel: 4 children Kuwait: 1 child • Humanitarian Impact: Millions of children are currently out of school due to widespread disruption to the education sector. Hundreds of thousands have been displaced by "unrelenting bombardment." Critical infrastructure, including hospitals, water systems, and sanitation, has faced significant destruction. • Global Call: The agency emphasized that nothing justifies the killing of children or the destruction of essential services, reiterating the UN Secretary-General’s urgent call for parties to end the fighting and pursue diplomatic negotiations. 📈

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3.2 Million Displaced in Iran Amid Escalating Conflict 📈

• Humanitarian Crisis: The UN Refugee Agency (UNHCR) reports that up to 3.2 million people have been internally displaced within Iran since conflict escalated in late February 2026. • Displacement Patterns: Preliminary estimates indicate a large-scale exodus of civilians from major urban centers toward perceived safer regions as the fighting intensifies. • Economic Implications: While primarily a humanitarian report, such mass displacement typically impacts regional supply chains and labor markets, potentially affecting global energy prices and trade stability if the situation persists. • Status: Based on provisional data from the UNHCR. ---

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Austerity Measures Loom as Middle East Conflict Impacts Sri Lanka 📈

Sri Lanka faces renewed economic pressure as the U.S./Israel-Iran conflict escalates, threatening energy security and key foreign exchange earners. • Energy & Utilities: Fuel and gas prices are rising. While the President maintains a 2-month stock exists, the CPC has urged "sparing use" of fuel. A return to fuel quotas and power cuts is anticipated. • Labor Migration & Remittances: Instability in the Gulf (Saudi Arabia, UAE, Bahrain) threatens the livelihoods of 1.3 million Sri Lankans. Potential mass returns could slash vital foreign exchange inflows and strain the domestic job market. • Tourism & Aviation: Arrivals have dropped 20% YoY. Major transit hubs like Dubai and Doha face flight disruptions, with British Airways cancelling Abu Dhabi routes through year-end. New travel advisories are further discouraging European visitors. • Export Sector: Disruptions are reported in tea exports and other goods to the Middle East. Increased global oil and LNG prices are directly inflating domestic production costs. • Economic Context: Following the 2022 crisis and recent damage from Cyclone Ditwah, the government warns of a return to austerity. Public cooperation is deemed essential to avoid social unrest as "belt-tightening" measures begin.

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NSB Joins Government’s Interest-Free Student Loan Scheme 🎓

The Cabinet has approved the inclusion of the National Savings Bank (NSB) as a formal lending partner for the government’s interest-free student loan program, joining People’s Bank and Bank of Ceylon. • Target Group: Students who passed G.C.E. (A/L) exams but did not secure admission to state universities. • Scope: Provides financing for government-recognized degrees at non-governmental higher education institutions. • Scale of Stage 10: The government aims to facilitate loans for 7,000 students in the current phase. • Objective: Increasing access to higher education and human capital development by removing interest costs for students pursuing private sector qualifications. The proposal was submitted by Prime Minister Dr. Harini Amarasuriya in her capacity as Minister of Education, Higher Education, and Vocational Education. 📈

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Cabinet Approves US$ 200,000 Grant to Digitise RTI Commission 📈

The Cabinet of Ministers has approved a modernization project to digitize the operational activities of the Right to Information (RTI) Commission, transitioning from manual processes to an automated system. • Funding & Support: A grant of US$ 200,000 will be provided by the Open Society Foundation, following recommendations from the World Bank. • Project Scope: The initiative covers the procurement of hardware, development of specialized software, and the hiring of technical expertise. • Capacity Building: Funds will also be allocated to training existing staff to manage the new digital platform effectively. • Economic Context: This move aims to improve efficiency in handling public appeals and official documentation, reflecting a broader push for digital transformation and transparency within Sri Lanka's public sector. Based on official Cabinet briefing data.

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Opposition Leaders Unite to Defend Democracy; SJB Absents 🏛️

• Event Overview: Leaders from multiple opposition factions met in Colombo under the theme ‘Protecting Democracy, Rule of Law and the Sovereignty of the People.’ The gathering aimed to foster coordination among political groups outside the current Government. • Key Political Alignment: Former President Ranil Wickremesinghe (via message) and UNP leadership emphasized that unity is essential for the opposition to succeed against current national challenges. Prof. G.L. Peiris advocated for a joint program that addresses key issues while maintaining individual party identities. Patali Champika Ranawaka (United Republican Front) raised concerns over administrative shortcomings and the targeting of capable individuals. • Participant Breakdown: Attendees included representatives from the UNP, SLPP (Media Spokesman), and various former ministers and MPs such as Nimal Siripala de Silva, Mahinda Amaraweera, and Mano Ganesan. • Notable Absence: The main opposition party, Samagi Jana Balawegaya (SJB), did not attend the meeting, highlighting a continued rift in broader opposition coordination. 📉

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### Cabinet Approves Science-Based Disaster Resilience Strategy 📈

Sri Lanka’s Cabinet has sanctioned a national strategy to shift disaster management from reactive response to a science-based prevention framework, following the devastating impact of Cyclone Ditwah. • Economic Impact: Cyclone Ditwah (Nov 2025) caused an estimated US$ 4.1 Bn in total economic losses, affecting 2.3 million people and exposing critical vulnerabilities in infrastructure and agriculture. • Strategic Shift: The Ministry of Science and Technology will lead a transition toward a "pre-disaster resilience framework" based on climatic stress examinations and data-driven preparedness. • Key Recommendations: The strategy adopts 14 core recommendations (7 for research/system development and 7 for implementation) aimed at protecting mountain and coastal ecosystems. • National Context: Described as a "climate stress test," the initiative seeks to safeguard national employment and economic stability by hardening infrastructure against future extreme weather events.

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🚢 Strait of Hormuz Attacks Heighten Global Shipping Risks

A significant security incident near the Strait of Hormuz has escalated concerns over global maritime stability, directly impacting critical trade routes essential for Sri Lanka’s energy security and transshipment volumes. • Incident Overview: Three commercial vessels were attacked in the Gulf; one vessel was reportedly set ablaze following the strike. • Strategic Impact: The attacks occurred in a waterway responsible for transporting roughly 20% of the world’s oil supply, posing a direct threat to global energy markets. • Regional Implications: Heightened maritime tension often leads to increased insurance premiums and freight surcharges, which could impact the cost of imports for Sri Lanka’s manufacturing and transport sectors. • Current Status: Security concerns remain elevated as international authorities monitor the safety of global shipping lanes linked to the Persian Gulf.

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Court Orders Repatriation of Iranian Sailors’ Bodies ⚖️

The Galle Chief Magistrate’s Court has directed the release of 84 Iranian sailors' remains to the Iranian Embassy following the sinking of the IRIS Dena off Sri Lanka’s southern coast. • Geopolitical Context: The Iranian naval vessel was reportedly sunk by US forces 19 nautical miles off the coast. Sri Lanka has maintained a stance of neutrality, handling the incident under international humanitarian law and maritime obligations. • Logistics & Repatriation: The bodies, currently held in freezer containers at the Galle National Hospital, will be repatriated to Tehran. The process is being coordinated between Iran’s Foreign Affairs Ministry and the Sri Lankan Government. • Casualties & Survivors: • Total bodies recovered: 84 • Reported missing: Approx. 20 • Rescued sailors (IRIS Dena): 32 • Crew from IRIS Bushehr: 208 (vessel experienced engine malfunction) • Economic Impact: The Sri Lankan Government is covering the necessary expenses for the survivors while they remain in the country. This incident highlights Sri Lanka's critical role in maritime security and humanitarian response within its territorial waters. _Summary based on provisional reports and court directives as of March 12, 2026._

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🇪🇸 Spain Recalls Ambassador to Israel Amid Deepening Rift 🇮🇱

Spain has officially withdrawn its Ambassador to Israel, signaling a significant escalation in diplomatic tensions. The Spanish Embassy will now be managed by a chargé d’affaires, marking a formal downgrade in representation. • Diplomatic Context: Relations have deteriorated following Spain's formal recognition of a Palestinian State and its vocal criticism of Israeli military operations in Gaza. • Regional Concerns: Madrid has expressed growing alarm over the broader Middle Eastern conflict involving the US, Israel, and Iran. • Strategic Stance: As one of the most critical EU voices regarding the Gaza conflict, Spain’s move reflects a push for stronger international intervention and a shift in its diplomatic engagement strategy. _Note: This summary is based on reports from the Spanish State Gazette as of March 12, 2026._

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Economic News

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Energy Security: SL Navigates Global Oil Spikes Amid Iran Conflict 📈

Sri Lanka is currently managing the domestic impact of soaring global oil prices, which have climbed above US$ 100 per barrel following regional instability and production cuts of 10 million barrels per day by major Middle Eastern producers. • Global Context: Nations like the Philippines, Vietnam, and Denmark are implementing fuel-saving measures, including four-day work weeks and remote work, to mitigate the "towering" prices driven by the ongoing US-Iran conflict. • Domestic Strategy: The Sri Lankan government currently maintains a two-month supply buffer and has resisted re-introducing the fuel quota (QR) system used during the 2022 crisis, despite its previous success in managing demand. • Regional Support: In a move toward energy diversification and supply stability, the Ministry of Foreign Affairs confirmed a positive response from India to secure fuel supplies if Middle East tensions prolong. • Economic Outlook: While oil traded at US$ 60 in late February, the rapid ascent to triple digits necessitates prudent fiscal management. Analysts urge transparency with the public regarding potential hardships to avoid the lack of clarity seen during the 2022 economic collapse.

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### 📈 Gulf Oil Revenues Plummet by US$ 15.1 Bn Amid Strait Closure

The escalation of conflict in the Middle East has severely disrupted global energy flows, with Arab Gulf producers losing an estimated US$ 15.1 Bn in oil and gas revenues since March 1, 2026. • Overall Impact: The de facto closure of the Strait of Hormuz has choked off roughly US$ 1.2 Bn in daily revenue. This represents a loss of 10 million barrels per day (bpd)—approximately 10% of global daily oil production. • Energy Supply Disruptions: • LNG: 20% of global supply is currently trapped. Qatar has halted production at Ras Laffan, the world's largest liquefaction complex, issuing force majeure notices. • Crude Oil: Saudi Arabia’s Aramco, which previously exported 6 million bpd via the Strait, faces the highest total revenue loss. • Infrastructure Constraints: Alternative routes, such as Saudi Arabia's East-West pipeline to the Red Sea, are insufficient. While the pipeline has a 7 million bpd theoretical capacity, terminal loading limits at Yanbu are estimated at only 3 million bpd. • Economic Vulnerability: While Kuwait and the UAE possess significant sovereign wealth buffers, Iraq is identified as the most fiscally vulnerable due to its heavy reliance on immediate oil receipts. • Regional Outlook: Beyond the Strait, expanding attacks on export infrastructure in Oman and Fujairah suggest further supply contractions are likely as storage reaches maximum capacity.

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New NEDP Targets 10%+ Annual Export Growth via Diversification 📈

The Export Development Board (EDB) is set to launch the National Export Development Plan (NEDP) next month, aiming for sustained growth and reduced market vulnerability. • Overall Targets: Aims for over 10% annual export growth to meet national expansion goals, developed in collaboration with the ADB and industry stakeholders. • Sector Breakdown: • Traditional Pillars: Continued strengthening of apparel, tea, rubber, and coconut-based products. • Emerging High-Potential Sectors: Focus on automotive components, electrical and electronic products, mineral-based industries, processed food & beverages, spices, and gems & jewellery. • Market Diversification: Strategy aims to reduce dependence on the US (25% of exports) and EU (23%). Focus shifting toward: • Africa: Recorded 46% growth last year. • Middle East: Recorded 25% growth last year. • Asia: Identified as a critical region for resilience. • Trade Frameworks: Leveraging GSP+, UK zero-tariff access, and regional agreements like SAFTA and APTA to accelerate market entry. _Source: EDB (Provisional Data)_

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Mideast Crisis & State Capture: Sri Lanka’s Economic Risks 📈

Advocata Institute Chairman Murtaza Jafferjee warns that while recent fuel hikes were necessary, deeper structural issues like State Capture and State Capacity (the "2SC problem") hinder Sri Lanka's ability to withstand global shocks. • Fuel Price Adjustments Government increased Petrol Octane 92 by Rs. 24 and Auto Diesel by Rs. 22. Jafferjee argues these are "insufficient"; spot market levels suggest a need for a Rs. 100 hike for petrol and Rs. 200 for diesel to reflect true global costs ($ 100+ per barrel). • Current Economic Standing Foreign Reserves: Exceed US$ 7 Bn. Remittances: Surpassed US$ 8 Bn last year. Despite stronger buffers, prolonged Middle East conflict threatens tea exports, tourism, and maritime trade via the Strait of Hormuz. • Structural Concerns Argues the economy is run for the benefit of "a thousand people" rather than the nation. Calls for trade liberalization and increased competition to prevent dollar shortages. Urges continued reforms in State-owned enterprises (SOEs), labor markets, and productivity to safeguard fiscal stability. • Strategic Outlook Immediate absorption of external shocks is possible through cost-reflective pricing and exchange rate flexibility, but long-term growth requires dismantling entrenched interests.

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📈 Global Growth Projected at 2.6% for 2026 amid Oil Price Risks

Fitch Ratings forecasts a steady but slightly slower global economic expansion for 2026, revised upward to 2.6% from previous estimates. While the world economy remains resilient against geopolitical shocks, growth is heavily contingent on the duration of current oil price volatility. • Global Outlook: World growth reached 2.7% in 2025. The 2026 forecast of 2.6% assumes the recent jump in oil prices is short-lived, with Brent crude averaging US$ 70 per barrel. • Major Economies: • USA: GDP growth is projected at 2.2%. Gains in AI-related investment and fiscal deficits are offsetting higher tariffs, though cooling labor markets may trigger two Fed rate cuts. • China: Expected to slow to 4.3% (from 5% in 2025) due to weakening consumer spending and exports. • Eurozone: Growth remains steady at 1.3%, supported by a recovery in Germany despite energy price headwinds. • Risk Factors: An adverse scenario with oil at US$ 100/barrel could slash global GDP by 0.4% and spike inflation by up to 1.5% in Western markets. • Trade & Tech: Global trade volume rose in 2025, driven by high import intensity in the ICT/BPM and semiconductor sectors required for AI infrastructure. Context for Sri Lanka: As a net oil importer, Sri Lanka's recovery remains sensitive to these global energy price fluctuations and the projected slowdown in key export markets like the US and China.

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President Warns Middle East Conflict May Strain Energy Supply Despite Strong Reserves 📈

President Anura Kumara Dissanayake has cautioned that a prolonged Middle East war could pressure Sri Lanka’s economic recovery due to global supply chain disruptions. While current reserves are stable, energy certainty is guaranteed only for the next two months. • Energy & Fuel Volatility: Global crude prices surged ~42% from US$ 70 to nearly US$ 100 per barrel in early March. This triggered a sharp spike in domestic demand, with diesel sales jumping from 4,500 KL to 10,500 KL and petrol from 4,000 KL to 9,000 KL within days due to market uncertainty. • Economic Context: Unlike the 2022 crisis, the current risk is not a lack of foreign exchange. Sri Lanka’s foreign reserves currently stand at a robust US$ 7.2 Bn. The primary threat is now external logistics and global supply route disruptions rather than a domestic dollar shortage. • Government Response: An Economic Monitoring Committee has been established to track risks. The state is engaging with friendly nations to secure energy supply chains and protect recent economic stabilization gains. • Public Advisory: The government urged citizens to avoid panic buying and moderate consumption, emphasizing that the challenge is an external supply shock that requires collective responsibility to manage.

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ADB President Commends Sri Lanka’s Economic Stabilization Efforts 📈

• Overall Cooperation: Prime Minister Dr. Harini Amarasuriya met with ADB President Masato Kanda in Manila to reaffirm the strong partnership between Sri Lanka and the Asian Development Bank. • Economic Outlook: President Kanda commended Sri Lanka’s efforts to stabilize the economy and advance recovery following the recent crisis. • Sectoral Focus: Discussions with ADB Vice President Yingming Yang reviewed progress on existing projects and explored future collaboration in key social sectors: • Health • Education • Social Development • Development Impact: The Prime Minister highlighted the importance of ADB-supported initiatives in driving the country’s ongoing recovery and long-term development.

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Impact of Global Geopolitics & US Trade Policies on Sri Lanka 📈

A critical assessment of Sri Lanka’s economic vulnerability highlights the "fragile" nature of current revenue streams amidst shifts in US trade policy and regional conflicts. • Overall Outlook: The economy faces significant short-to-medium-term risks in remittances, tourism, and export revenues, which are projected to decline as global geopolitical tensions rise. • Sector Vulnerabilities: • Apparel & Textiles: The sector remains a manufacturing foundation but is increasingly susceptible to external pressures, such as GSP+ conditions and tariff hikes, due to a reliance on price competition over strategic positioning. • Tea & Agriculture: Traditional exports like tea, coconut, and rubber are losing global market share to competitors. Growth has been sustained primarily by private sector value-addition rather than state strategy. • Energy: A lack of transition to renewable energy—stalled by internal vested interests—leaves the nation heavily dependent on volatile fossil fuel costs. • Strategic Gaps: Since 1977, a "complacent policy mindset" has prioritized annual budgeting and borrowing over long-term industrial diversification. The reliance on a limited range of products is described as building "sandcastles" against global economic waves. • Recommendations: To safeguard the middle class and stimulate consumption during the next 12 months, a strategic short-term reduction in indirect taxes is proposed as a survival mechanism.

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Fear-Driven 'Administrative Inertia' Stalling Economic Recovery 📈

A culture of fear and "defensive bureaucracy" within the public sector has become a primary bottleneck to Sri Lanka's growth. Officials are increasingly prioritizing strict procedural compliance over functional results to avoid future audits or legal repercussions. • Overall Impact: Decision-making paralysis is delaying vital infrastructure upgrades and deterring foreign investment. Capital is reportedly flowing to competitors like Vietnam, India, and Bangladesh due to the slow "fear-loop" of local approvals. • Sector Barriers: • State-Owned Infrastructure: Maintenance and upgrades are stalled due to tender processes becoming "legal minefields." • Foreign Investment: Ease of doing business is hampered by excessive paperwork and the search for "cover my backside" approvals. • Public Service: Top-tier talent is exiting to the private sector to avoid the risk of "retrospective criminalization" for honest commercial miscalculations. • Key Economic Risks: • Failure to distinguish between malicious bypass (corruption) and pragmatic flexibility (innovation). • Auditors using "asymmetric hindsight bias" to judge 2020-era crisis decisions with 2026 data. • Stagnation in critical transitions like renewable energy or debt restructuring due to "judgment call" fears. • Proposed Solutions: • Implementing "Safe Harbour" rules to protect "good faith" decisions. • Reforming the Auditor General’s mandate to focus on integrity of process rather than subjective "value for money." • Introducing state-funded professional indemnity insurance for high-level officials.

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

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

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

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

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🚀 Fuel Prices Hiked Across the Board Amid Global Supply Concerns

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

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Industry & Sector News

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## 🎭 Kolamba Kamatha Festival 2026: Boosting Creative Economy

The second edition of the Kolamba Kamatha Festival (KKF) returns from 27 to 29 March 2026 at the BMICH, aimed at transforming Sri Lankan theatre from "passion projects" into a viable economic sector. • Economic Impact & Scope: The festival serves as a professional intervention for over 450 artists from regions including Colombo, Nuwara Eliya, Kurunegala, and Matara. It addresses chronic underfunding by providing infrastructure and direct funding to creators. • Sector Highlights: Creative Arts & Entertainment: The 2026 lineup features 21 plays (8 full-length, 10 short, and 3 competition finalists) across all three languages to break communal and genre silos. Youth & Education: Includes 5 masterclasses in scriptwriting and production, alongside a retrospective on the "Apey Kattiya" movement to bridge generational gaps in performing arts. Tourism & Hospitality: The event transforms the BMICH into a three-day cultural hub with food, drink, and interactive activities to engage diverse audiences. • Commercial Details: Sponsorship: Cargills (Ceylon) PLC continues as the Lead Platinum Sponsor, reinforcing corporate support for the theatrical arts. Pricing: Designed for accessibility with student tickets at Rs. 200 and general entry at Rs. 1,000. Box Office: Public launch on Monday, 16 March via official website and BMICH physical counters. _Note: Based on event scheduling and provisional artist lineups._

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### 📈 Enhancing Business Growth through Internal & External Customer Insights

A recent analysis by Survey Research Lanka highlights the critical link between employee satisfaction (internal customers) and consumer loyalty (external customers), rooted in the Service-Fit Chain theory. Despite its impact on profitability, many firms overlook internal satisfaction in favor of external metrics. • The NPS Complexity The widely used Net Promoter Score (NPS) measures loyalty on a 0–10 scale. While simple, it is often criticized for being "unidimensional." Data shows nearly 90% of "passive" customers (rating 7-8) are actually satisfied but are excluded from traditional NPS calculations. Approximately 38% of "detractors" (0-6) may still report high satisfaction levels, creating a non-linear relationship between being happy and giving a recommendation. • Sector & Cultural Nuances The correlation between satisfaction and recommendation varies significantly by industry: Retail: High correlation due to the transactional nature of the business. Banking & Healthcare: Lower correlation as recommendations require more rational, long-term trust beyond immediate satisfaction. Cultural Factors: In Asian markets, satisfied customers may hesitate to recommend brands to avoid personal responsibility if the experience differs for others. • Strategic Recommendations To drive business growth and employment stability, companies should: Move beyond single-question surveys to include behavioral loyalty (repeat spend). Use a mixed-methods approach, triangulating quantitative data with qualitative insights. Focus on internal customer satisfaction as a primary driver for high-quality external service delivery. _Source: Analysis by Survey Research Lanka (Provisional Data)_

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COPE Confirms No Machinery Damage at Norochcholai; Calls for Independent Coal Testing ⚡

The Committee on Public Enterprises (COPE) recently conducted an on-site inspection of the Lakvijaya Power Plant following concerns over coal quality. • Operational Status: COPE Chairman Nishantha Samaraweera confirmed that recently imported coal has not caused damage to machinery. The plant is functioning normally, though a "slight shortfall" in electricity generation was noted. • Energy Impact: As the country’s only coal-fired power plant, it provides 35% to 40% of Sri Lanka’s national grid requirement with a capacity exceeding 900 MW. • Quality Concerns: While the plant remains operational, COPE acknowledged that some coal shipments were not within the "optimal range," leading to a marginal reduction in output. • Key Recommendations: • Establish testing through an independent, accredited laboratory within Sri Lanka to ensure transparency. • Improve the protocols for random sampling and the transportation of samples to prevent future disputes. • Properly calibrate the existing on-site laboratory to meet international standards. • Next Steps: A forthcoming audit report will determine if quality issues arose from procedural lapses or deliberate actions during the procurement process. 📉 Based on provisional inspection findings as of March 13, 2026.

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### 📉 Cyclone Ditwah: Rs. 33.9 Bn Impact on Manufacturing Sector

Preliminary assessments reveal a significant economic blow to Sri Lanka's industrial landscape following Cyclone Ditwah in late November 2025. • Overall Economic Loss: Estimated at Rs. 33.96 billion, representing nearly 2% of the sector's Q3 2025 GDP contribution. • Loss Breakdown: • Raw Materials & Inventory: Rs. 10.2 billion (bulk of the damage). • Infrastructure: Major losses from submerged machinery, equipment damage, and factory flooding. • Operations: Widespread revenue disruptions and supply chain breaks across industrial zones. • Sector Context: The manufacturing and industrial sector contributed 27.7% to national GDP (approx. Rs. 2.3 trillion) in Q3 2025. • Recovery Efforts: • The Industry Revival Facilitation Program (IRFP) Phase I concluded, assisting 43 affected firms. • Supported by major private sector players including MAS Holdings, Brandix, John Keells, and Hayleys PLC. • A new Industry Development Foster Program (IDFP) is being launched for long-term recovery based on post-disaster data. _Note: Figures are based on preliminary assessments by the Ministry of Industry and Entrepreneurship Development._

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📈 Colombo Port Strategy Review Amid Mideast Tensions

The Sri Lanka Ports Authority (SLPA) Chairman, Dr. Parakrama Dissanayake, convened a high-level stakeholder meeting to ensure uninterrupted operations at the Port of Colombo as geopolitical tensions escalate in the Middle East. • Strategic Coordination The discussion focused on maintaining operational efficiency and developing rapid response protocols to mitigate potential disruptions to global shipping routes. This proactive measures aim to safeguard Sri Lanka's position as a critical transshipment hub. • Stakeholder Participation Key representatives from major terminal operators and global shipping lines were present, including: Terminal Operators: SAGT, Colombo International Container Terminals (CICT), and Colombo West International Terminal (CWIT). Regional Hubs: Leadership from the Hambantota International Port Group (HIPG). Shipping Giants: Representatives from MSC, Maersk, Hapag-Lloyd, CMA CGM, COSCO, and Evergreen. • Economic Impact The meeting highlighted the necessity of alignment between the shipping & logistics sector and the Ceylon Association of Shipping Agents (CASA) to protect national interests, employment, and trade flow continuity during external regional volatility.

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Electricity Tariff Warning: 40% Wage Hike Could Double Rates ⚡

The National Transmission Network Service Provider has warned of a potential 100% electricity tariff hike if trade union demands for a 40% salary increase are met. While the strike has been temporarily suspended following Labour Ministry talks, significant financial concerns remain. • Financial Impact: Granting the 40% increase would add Rs. 1.8 Bn to monthly expenditure, totaling approximately Rs. 22 Bn annually. This follows the CEB recording losses of Rs. 35 Bn as of 31 December 2025. • Negotiation Status: Management has already accepted 62 out of 64 union demands. Key concessions include an Rs. 11,000 allowance plus cost-of-living adjustments, raising average monthly payments by roughly Rs. 17,000. • Restructuring Context: Unions are seeking to retain benefits during the transition from the CEB to six successor companies. Outstanding issues, including a retroactive 25% salary adjustment from 2024, have been referred to President Anura Kumara Dissanayake. • Economic Risk: A 100% tariff increase would severely impact industries, households, and overall national competitiveness, potentially stalling economic recovery.

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Fuel Supply Issues Threaten Sri Lanka’s Bakery Sector 📈

The All Ceylon Bakery Owners Association (ACBOA) has flagged critical energy shortages affecting production nationwide. Despite rising operational hurdles, the association confirmed there are no immediate plans for price hikes. • Energy Dependency: The sector relies on a diverse energy mix, with 25% of bakeries using gas and 25-30% dependent on diesel and kerosene. The remainder utilizes firewood or alternative sources. • Logistical Hurdles: Current regulations restricting the sale of fuel in cans have disrupted supply chains, as many small-scale bakeries rely on this method to transport diesel and petrol for machinery. • Operational Risks: Beyond fuel, the industry is grappling with a countrywide shortage of gas, rising gas prices, and localized power outages, which collectively threaten daily production stability. • Key Request: The ACBOA is urging the Government to implement a special mechanism allowing the purchase of fuel in containers to ensure the food processing and retail sector remains functional.

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🔥 Domestic LPG Prices Surge Amid Global Energy Pressures

Both major suppliers, Litro Gas and LAUGFS Gas, have announced upward price revisions for domestic LPG cylinders, effective this week. The hikes are attributed to rising international energy costs and supply chain disruptions linked to Middle Eastern tensions. • Litro Gas (State-run) - Effective March 10: 12.5 kg cylinder: Increased by Rs. 300 to Rs. 3,990. 5 kg cylinder: Increased by Rs. 120 to Rs. 1,602. 2.3 kg cylinder: Increased by Rs. 56 to Rs. 750. • LAUGFS Gas PLC - Effective March 11: 12.5 kg cylinder: Increased by Rs. 300 to Rs. 4,630. 5 kg cylinder: Increased by Rs. 120 to Rs. 1,862. • Key Drivers: The price adjustments reflect tight market availability and elevated global benchmarks. Both companies emphasized that revisions were kept to a minimum to mitigate the impact on households while ensuring a continuous nationwide supply. 📈

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### 📈 Sri Lanka’s Gig Economy: High Risks & Algorithmic Pressure

A new report highlights the growing precarity of app-based transport and delivery sectors in Sri Lanka, as workers increasingly rely on platforms for full-time income amidst escalating climate and economic shocks. • Workload & Employment Status • 93% of app-based drivers work over 11 hours daily; 33% exceed 16 hours. • Transition from "gig" to de facto full-time employment (2021-25 data). • Workers are classified as independent contractors, bypassing formal labor protections. • Impact of Polycrisis • Economic: 2022-23 crisis led to fuel shortages and increased platform commissions. • Climate: Extreme heat (>27°C) and events like Cyclone Ditwah (Nov 2025) pose severe safety risks. • Algorithm: Opaque systems nudge workers to stay active during hazardous conditions via surge pricing and targets (e.g., Rs. 10,000 for 145 orders in 4 days). • Social Safety Nets & Representation • Limited insurance coverage often fluctuates based on productivity ratings. • Only 11% of ride-hailing and 19% of delivery riders report platform recognition of their associations. • High barriers to collective bargaining as "employers" remain legally undefined. • Policy Recommendations • Integration of gig work into national labor statistics and occupational health regulations. • Implementation of urban infrastructure like water stations and rest areas for outdoor workers. • Demand for algorithmic transparency to ensure fair income and safety guidelines.

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Rising AI Risks for Software, Media & Services 📈

A new report from Fitch Ratings highlights that AI-driven credit risks are intensifying, particularly for asset-light sectors driven by intangibles and human capital. While most sectors remain stable, specific high-tech areas face structural shifts. • Sector Impact: Software, Media, and Services face the highest disruption risk. AI-enabled substitutes are lowering entry barriers, potentially squeezing margins and increasing competition. • Resilience Factors: Companies with mission-critical functions, high switching costs, and proprietary data are expected to be more resilient. Financial flexibility to invest in AI and strategic acquisitions is now a key competitive moat. • Investment Trends: Overinvestment risk is largely confined to hyperscalers. For broader North American corporates, capex intensity is projected to rise only modestly to 7.4% of revenues in 2025-2026 (up from 6.0-7.0% previously). • Credit Outlook: AI is not a near-term rating driver for most of the 14 sectors reviewed. Adoption remains gradual and efficiency-focused, with traditional financial structures still dominating credit outcomes. • Sri Lankan Context: As the local ICT/BPM and software development sectors seek global expansion, maintaining proprietary IP and high-value integration will be vital to mitigating these emerging global AI risks.

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🚢 Sri Lanka Partners with UN Vessel for 32-Day Marine Scientific Survey

The UN-flagged vessel R/V Dr. Fridtjof Nansen arrives in Sri Lanka today to conduct a comprehensive marine survey within the Exclusive Economic Zone (EEZ), marking a significant step for the fisheries sector and ocean governance. • Mission Overview: A 32-day collaborative project between the FAO, the Ministry of Fisheries, and NARA to assess marine living resources and ecosystem health. • Key Activities: Hydro-acoustic surveys to estimate biomass and distribution of key fish stocks. Monitoring of biodiversity and assessment of marine pollution levels. Studying the impacts of climate change on marine ecosystems. • Economic Impact: Data gathered will support sustainable fisheries management, ensuring long-term food security and the viability of the export and aquatic resources industries. • Capacity Building: The mission facilitates knowledge exchange between international experts and Sri Lankan scientists to enhance national research capabilities. • Historical Context: This mission continues a long-standing partnership, following previous scientific surveys conducted in 1978–1980 and 2018. This initiative underscores Sri Lanka’s commitment to scientific cooperation and the sustainable management of its maritime territory. 📈 _

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### ⛽ CPC Urges Fuel Conservation Amid Middle East Crisis

The Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has issued a formal advisory for the public to limit non-essential travel and exercise caution in fuel consumption. This move comes as Sri Lanka faces heightened energy security challenges linked to escalating geopolitical tensions. • Current Situation: Ongoing conflicts in the Middle East have impacted global supply chains, leading to potential energy supply constraints for the island. • Key Directive: The public is urged to use fuel sparingly to ensure the stability of national reserves during this period of instability. • Economic Context: As the country relies heavily on imported refined products and crude oil, any disruption in the energy sector directly affects transport, manufacturing, and overall inflation. _Note: Summary based on current CPC advisories as of March 11, 2026._

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Product & Service Launches / Business Expansions

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Metropolitan and Canon Launch Advanced Cinema EOS C400 in Sri Lanka 📈

• Key Highlight: Metropolitan Technologies, the official distributor for Canon, officially introduced the Canon Cinema EOS C400 to the Sri Lankan market. This marks a strategic push to upgrade the local digital filmmaking and creative arts infrastructure with high-end imaging technology. • Industry Impact: The launch aims to enhance the country's ICT/BPM and media production capabilities. By providing tools with advanced dynamic range and low-light performance, the partnership supports the professional development of local cinematographers and content creators. • Sector Synergy: Metropolitan (a subsidiary of Metrocorp Group) is leveraging its 50-year partnership with Canon to drive technological adoption. This aligns with broader economic goals of diversifying the services sector and fostering the "Voyager of Light" community in the region. • Strategic Application: The technology was debuted via the short film 'Little Life', demonstrating its commercial viability for international-grade productions (e.g., Netflix, BBC, and National Geographic). • Corporate Context: Metrocorp remains a diversified powerhouse in Sri Lanka, spanning IT, tea, tourism, and energy, indicating a robust corporate backing for this technological leap in the local film industry.

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☕ NESCAFÉ Returns as Creative Partner for Colombo Fashion Week 2026

Nestlé’s iconic brand, NESCAFÉ, has announced its continued partnership with the 23rd edition of Colombo Fashion Week (CFW), scheduled from April 1st to 4th, 2026, at the City of Dreams Sri Lanka. • Strategic Collaboration: The partnership aims to fuel creativity and ambition within the creative economy, serving as a hub for designers, influencers, and artists through the "NESCAFÉ Fashion Café." • Event Scope: The Summer 2026 season marks a significant expansion of Sri Lanka’s fashion and retail footprint, featuring a South Asia Edition of BRICS in collaboration with the BRICS International Fashion Federation. • Global Connectivity: CFW continues to strengthen international ties for the local apparel & design sector through partnerships with entities like White Milano, enhancing the global visibility of Sri Lankan talent. • Corporate Alignment: The initiative aligns with Nestlé Lanka’s broader goal of fostering innovation and self-expression, positioning the coffee brand as a catalyst for creative exchange within the high-profile event. 📈 _Summary based on official press release dated March 13, 2026._

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Port City Colombo Partners with OREL IT to Boost Digital Infrastructure 📈

• Strategic Partnership: CHEC Port City Colombo and OREL IT have signed an agreement to strengthen the technology backbone of the Special Economic Zone (SEZ), positioning it as a globally competitive ICT/BPM and financial hub. • Service Scope: OREL IT, named the "Preferred Ecosystem Partner," will provide enterprise-grade solutions including Artificial Intelligence, cybersecurity, cloud technologies, and managed services to companies registered under the Colombo Port City Economic Commission (CPCEC). • Infrastructure Development: The partnership outlines plans to accelerate a state-of-the-art data centre within the 269-hectare reclaimed land area to support high-growth digital enterprises. • Operational Momentum: Total Companies: 220 applications received; 146 licensed and operational. Strategic Impact: 27 firms approved as Businesses of Strategic Importance (BSI), qualifying for fiscal incentives. Real Estate: 8 land parcels leased, with 5 additional parcels under active discussion. • Economic Context: This collaboration aims to enhance Sri Lanka’s appeal for foreign direct investment by providing a "future-ready" digital environment for international businesses.

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SL Tourism & Navy Partner to Boost Marine Tourism via Celebrity Diving Expedition 🌊

• Overall Strategy: The Sri Lanka Tourism Promotion Bureau (SLTPB) is aggressively positioning the island as a premier global hub for marine tourism, focusing on underwater exploration and historical shipwreck diving. • Key Initiative: Three high-profile Serbian celebrity divers—Janez Kranjc, Ivana Orlovic Kranjc, and Dorotea Dikic—are conducting an expedition (March 6–19) to document Sri Lanka’s marine biodiversity and heritage sites. • Strategic Locations: The expedition covers critical coastal hubs including Colombo, Negombo, Mirissa, Kirinda, and Galle, specifically targeting adventure travelers and the sustainable tourism segment. • Institutional Collaboration: In a unique partnership, the Sri Lanka Navy and SLTPB officially launched integrated digital content on March 12, 2026. This collaboration combines professional celebrity footage with the Navy's existing marine archives to enhance global marketing via official state platforms. • Economic Context: The initiative aims to diversify Sri Lanka's tourism portfolio beyond traditional leisure, leveraging the country's underwater heritage to attract high-spending niche markets and support coastal economies. 📈

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### 🍦 Elephant House Enhances Manufacturing with Advanced Extrusion Tech

Ceylon Cold Stores PLC (CCS) has announced a landmark investment in advanced extrusion technology at its Avissawella manufacturing facility, significantly upgrading its Elephant House ice cream production capabilities. • Technological Leap: The new extrusion line enables precision layering, indulgent cores, and premium coatings. This allows for global-standard formats such as frozen sandwiches, cakes, and logs. • Strategic Focus: The upgrade targets two key segments of the food and beverage sector: Elephant House Wonder: Aimed at driving mass-market category growth. IMORICH: Focused on the premium, aspirational segment with high-quality textures. • Economic Impact: This investment reinforces Sri Lanka’s manufacturing excellence and competitiveness against international brands. By future-proofing product development, CCS aims to lead the evolution of the local dairy-based indulgence market. • Context: As a major player in the consumer goods sector, this move by the John Keells Group subsidiary emphasizes a commitment to industrial innovation and local value addition.

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Visa Becomes Official Payment Partner for MasterChef Sri Lanka Season 01 📈

• Visa has officially partnered with Reality TV Productions Ltd. as the exclusive payment partner for the inaugural season of MasterChef Sri Lanka, airing on ITN. • Sri Lanka becomes the 72nd country to adopt the franchise, a format recognized by Guinness World Records and broadcast in over 200 territories globally. • The partnership aims to spotlight Sri Lanka’s culinary heritage and food culture, providing a global platform for local talent, entrepreneurs, and small businesses. • Key economic impacts include the promotion of the tourism sector and supporting digital innovation within the local food and beverage industry. • Visa’s involvement reflects a strategic commitment to enhancing consumer experiences and expanding digital payment access across the hospitality and SME sectors.

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SDB Bank Partners with SARP to Boost Rural Agribusiness 📈

SDB bank has signed an MoU with the Smallholder Agribusiness and Resilience Project (SARP) to provide affordable credit to rural households, focusing on climate-vulnerable regions. • Project Scope & Funding: SARP is a six-year, US$ 82 Mn initiative (2022–2027) funded by the International Fund for Agricultural Development (IFAD), the Government of Sri Lanka, and other stakeholders. • Target Regions: The project covers districts including Anuradhapura, Puttalam, Kurunegala, Matale, Vavuniya, and Mannar, specifically targeting the Malwathu Oya, Mee Oya, and Deduru Oya river basins. • Financial Support: Under IFAD guidelines, 45% of project costs are provided as grants, while beneficiaries must provide 55% as equity. SDB bank will bridge this funding gap by offering credit facilities to smallholder agribusinesses. • Implementation: Financing will be channeled through the bank’s SME and Cooperative segments, utilizing the bank’s own resources and existing credit lines to ensure structured lending. • Economic Impact: This partnership aims to strengthen financial inclusion and rural entrepreneurship within the agriculture sector, enhancing the climate resilience and market participation of farming communities. Based on provisional project data.

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FitsAir Launches Direct Ahmedabad-Colombo Flights to Boost Tourism 📈

Sri Lankan private carrier FitsAir has partnered with Cinnamon Hotels & Resorts, Walkers Tours, and City of Dreams Sri Lanka to launch a new direct flight route, targeting the high-growth Gujarat market. • Service Details: Scheduled flights will operate three times a week starting May 15, 2026. The overnight schedule is designed to maximize "full-day" itineraries for travelers. • Strategic Focus: The initiative specifically targets India as a primary source market, with Gujarat identified as a key region for leisure and outbound travel growth. • Tourism Integration: The route supports the City of Dreams Sri Lanka integrated resort, aiming to position Colombo as a regional hub for lifestyle tourism and entertainment. • Economic Offering: Curated travel packages are being launched starting at ₹55,555, bundling return airfare with stays at Cinnamon Life to streamline arrivals. • Connectivity: Beyond direct tourism, the route leverages FitsAir’s international network for onward connections through Colombo, strengthening aviation and commercial links between Western India and Sri Lanka.

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📈 SriLankan Airlines to Boost Melbourne Frequency to 10 Weekly Flights

SriLankan Airlines has announced a strategic expansion of its Australian operations, increasing services between Colombo and Melbourne starting 2 August 2026. • Flight Frequency: Weekly services will rise from the current daily schedule to 10 flights per week, adding three new scheduled frequencies on Tuesdays, Thursdays, and Sundays. • Strategic Driver: The move addresses surging passenger demand in the Australian market, cited as one of the fastest-growing sources for inbound tourism. • Market Segments: Expansion targets the leisure travel sector and the significant Sri Lankan diaspora (VFR - Visiting Friends and Relatives), strengthening cultural and economic links. • Connectivity: The revised timetable is optimized to enhance onward connections through Colombo, specifically targeting the high-growth transit market to India. • Schedule Details: • Colombo to Melbourne: Departs 14:10, Arrives 04:30 (+1) • Melbourne to Colombo: Departs 06:00, Arrives 12:15 This capacity boost reflects the national carrier’s focus on capturing higher market share in key long-haul routes to support tourism recovery and hub connectivity.

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## DFCC Bank Launches Biometric Verification for Pensioners 📈

DFCC Bank PLC, through its Garusaru senior citizen proposition, has partnered with the Department of Pensions to introduce fingerprint-based life certificate verification at 50 selected branches island-wide. • Service Scope: The initiative allows eligible government pensioners to complete mandatory annual life certificate verification using biometric authentication, bypassing the need to visit Divisional Secretariats or Grama Niladhari offices. • Eligibility: Currently available to government pensioners who retired after 2016 and have previously registered their fingerprints with the Department of Pensions. • Economic Impact: By streamlining a recurring administrative process, the move enhances the efficiency of the financial services sector and improves the integrity of national pension records. • Key Benefits: Reduces travel and paperwork hurdles for senior citizens while ensuring more accurate, timely updates to the national pension system. Based on official bank disclosures as of March 2026. ---

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Reliance Industries Backs New U.S. Refinery to Curb Trade Deficit 📈

• Project Overview: President Donald Trump announced a new 168,000 barrels-per-day (bpd) refinery in Brownsville, Texas, specifically designed to process American shale oil. The project is backed by India’s Reliance Industries, operator of the world’s largest refining complex. • Economic Impact: The facility aims to offset a US$ 300 billion trade deficit with India. Reliance has signed a binding 20-year offtake agreement to purchase the refinery's products, directly addressing U.S. grievances regarding India's trade surplus. • Strategic Context: • First new U.S. refinery designed for "light, sweet" crude in 50 years. • Groundbreaking scheduled for Q2 2026. • Funded by a "9-figure investment" at a "10-figure valuation." • Market Significance: While analysts question the necessity of new Gulf Coast capacity, the move is seen as a strategic play to lower domestic gasoline prices amid the U.S.-Israel-Iran conflict and strengthen energy ties between the U.S. and India. The refinery is positioned as an export hub, likely targeting South American markets for motor fuel and heating oil. • Note: Based on provisional statements from America First Refining; Reliance Industries has not yet issued a formal comment.

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### CSE Expands Reach with New Branch in Kegalle 📈

The Colombo Stock Exchange (CSE) has officially inaugurated its branch in Kegalle, marking a significant step in decentralizing access to Sri Lanka’s capital markets. With this addition, the CSE now maintains a physical presence across all nine provinces through 11 regional branches. • Strategic Expansion: The branch aims to tap into the Kegalle region’s strong agricultural sector and vibrant SME community, providing local businesses with a platform to raise capital. • Investor Services: The facility provides essential services including CDS account opening, access to stockbroker firms (accommodating up to six brokers), and personalized investment guidance. • National Objectives: The Securities and Exchange Commission (SEC) highlighted a national goal to increase the number of listed companies from 289 to 500 within the next three years. • Financial Inclusion: The move focuses on increasing public participation in the financial services sector and enhancing investor education for new market entrants in the Sabaragamuwa Province. The expansion reflects a commitment to diversifying the investor base and supporting SME growth as a pillar of national economic development. ---

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Real Estate

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

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

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

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

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📈 IESL Calls for Urgent Reform in Building Fire Safety

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

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

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

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

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

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Colombo Land Values Surge 10.6% in H2 2025 📈

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

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

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

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

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

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

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

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

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

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📈 Groundworth Launches "The Estate" in Hokandara

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

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

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

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Market News

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Asian Stocks Slide as Iran Conflict Keeps Oil Near $100 📉

The escalation of the war involving Iran, the U.S., and Israel continues to rattle global markets, driving energy costs up and crushing expectations for central bank rate cuts. • Global Market Impact: Asian equities slumped on Friday, with the MSCI Asia-Pacific index on track for a 1.5% weekly decline. Significant losses were recorded in Japan (Nikkei down 1.3%) and tech-heavy South Korea (down 2%). • Energy & Inflation: Brent crude remains volatile near the US$ 100 per barrel threshold (currently US$ 99.85) as threats to the Strait of Hormuz persist. Rising oil prices have spiked inflation fears, leading traders to scale back Federal Reserve rate cut bets from 50 bps down to just 20 bps for the year. • Currency & Safe Havens: The U.S. Dollar has emerged as the primary safe haven, gaining 2% since the conflict began in late February. The Japanese Yen hovers near 160 per dollar, while Gold is set for a 1% weekly drop as investors pivot toward the dollar and higher-yielding Treasury notes. • Sri Lankan Context: For Sri Lanka, sustained oil prices near US$ 100 pose a significant risk to the trade balance and domestic fuel pricing. Additionally, a stronger dollar and "higher-for-longer" global interest rates may pressure the LKR and complicate international debt dynamics.

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📉 Oil Prices Dip as US Eases Russian Supply Curbs

Global oil prices retreated on Friday morning following a strategic US intervention to stabilize markets currently volatile due to conflict in the Middle East. • Overall Market Figures: Brent crude futures dropped by 71 cents (-0.71%) to US$ 99.75 per barrel. US West Texas Intermediate (WTI) fell by 88 cents (-0.92%) to US$ 94.85. This follows a massive 9% surge in both benchmarks on Thursday. • Supply Interventions: The US Treasury issued a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea. Additionally, a massive coordinated release of 400 million barrels from strategic stockpiles (including 172 million from the US) has been announced to curb skyrocketing energy costs. • Geopolitical Risks: Despite the price dip, significant risks remain as the Strait of Hormuz remains a flashpoint. Iranian leadership has threatened to keep the strait shut, and Iraqi oil ports have reportedly halted operations following attacks on tankers. • Impact on Energy & Logistics: For a net importer like Sri Lanka, these global fluctuations directly influence the power & energy sector and transport costs. While the US license provides temporary relief, the regional escalation continues to threaten global supply chain stability and freight premiums.

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📈 Primary Bond Auctions See Positive Rates Amid Undersubscription

The Treasury Bond auctions conducted yesterday yielded weighted average rates below or in-line with secondary market levels, signaling a stable interest rate environment despite moderate participation. • Auction Performance: The government raised Rs. 87.02 billion, reflecting a 66.94% acceptance rate of the Rs. 130 billion on offer. The bid-to-acceptance ratio stood at 2.45 times. • Maturity Breakdown: - 01.03.30: Issued at 9.63% (Undersubscribed). - 15.06.34: Issued at 10.70% (Undersubscribed). - 15.08.36: Issued at 10.80% (Fully subscribed at 1st phase). • Secondary Market: Activity remained subdued as yields consolidated. Traders adopted a conservative stance due to global headwinds from the US-Iran conflict. Notable trades included the 15.09.27 maturity at 8.55% and the 01.11.33 at 10.50%. • Liquidity & Forex: - Market Liquidity: Net surplus recorded at Rs. 319.48 billion. The Central Bank drained Rs. 150 billion via overnight repo at 7.44%. - Currency: The USD/LKR spot exchange rate closed slightly weaker at Rs. 311.00/311.15, compared to the previous close of Rs. 310.85/310.95. - Trade Volume: Total USD/LKR volume for March 10 stood at $ 56.50 million.

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CSE Ends Down 1.6% Below 22,000 Points on Mideast Concerns 📉

The Colombo Stock Exchange (CSE) saw sharp declines yesterday as rising global oil prices and Middle East instability weighed on investor sentiment. • Market Performance Overview The All Share Price Index (ASPI) fell by 1.63% (363.43 points) to close at 21,998.12. The blue-chip S&P SL20 dropped 1.71% (107.42 points) to 6,172.28. Since the conflict began on 27 February, the ASPI has recorded a cumulative loss of 7.4%. • Sector & Stock Highlights The Capital Goods sector led daily turnover with a 32% share, followed by Diversified Financials and Food, Beverage, and Tobacco (35% combined). Major laggards included JKH, HNB, and MELS. Despite the downturn, HNW investor participation remained strong in crossing transactions. • Trading & Foreign Inflow • Market Turnover: Over Rs. 4.1 Bn on 140 Mn shares. • Net Foreign Inflow: Rs. 32.2 Mn (Net buying topped in PKME). • Market Breadth: Heavily negative with 207 decliners against 36 gainers. • Market P/E: 10.88. Rising crude prices and shipping route disruptions remain key risks for the transport and manufacturing sectors, contributing to the current 1,746-point ASPI decline over the last two weeks.

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Oil Prices Surge: Brent Hits US$ 100 Amid Middle East Escallation 📈

Global energy markets witnessed a sharp spike on Thursday as intensified conflict in the Middle East fueled fears of prolonged supply disruptions through the Strait of Hormuz. • Price Action: Brent futures jumped 9.28% (up US$ 8.54) to US$ 100.52 per barrel. U.S. WTI crude rose 8.28% to US$ 94.47. • Supply Disruptions: Attacks on oil and transport facilities, including explosive-laden boat strikes on two foreign tankers in Iraqi waters, have heightened security risks. Iran’s military command warned of prices potentially reaching US$ 200 per barrel if regional instability persists. • Emergency Measures: The International Energy Agency (IEA) has agreed to a record release of 400 million barrels of oil (with the U.S. contributing 172 million barrels) to stabilize the market. • Market Outlook: Analysts from ING and Moomoo ANZ note that while IEA reserves provide temporary relief, a sustained price drop is unlikely until oil flows resume through the Strait of Hormuz. Economic Context: For Sri Lanka, rising global oil prices typically exert significant pressure on foreign exchange reserves, increase the cost of thermal power generation, and impact the transportation sector.

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📈 T-Bill Yields Dip Marginally Amid Undersubscribed Rs. 130 Bn Auction

The weekly Treasury Bill auction saw a slight decline in short-term yields, though the offer remained undersubscribed during the initial competitive bidding phase. • Auction Results: Only Rs. 96.72 Bn (74.40%) of the Rs. 130 Bn offered was raised. Phase II remains open for the 182-day and 364-day maturities. • Yield Movements: • 91-day: 7.61% (down 2 bps) • 182-day: 7.91% (down 1 bp) • 364-day: 8.23% (unchanged) • Secondary Bond Market: Rates remained broadly steady with healthy transaction volumes. Notable trades included the 15.09.27 maturity at 8.56% and the 01.06.33 at 10.50%. Total transacted volume reached Rs. 7.51 Bn. • Liquidity & Money Market: A significant net liquidity surplus of Rs. 394.53 Bn was recorded. The Central Bank absorbed Rs. 240 Bn via overnight and seven-day repo auctions to manage excess liquidity. • Forex Market: The LKR showed slight appreciation, with the USD/LKR spot closing at 310.85/310.95 compared to the previous day's 310.90/311.00. Daily traded volume stood at US$ 108.90 Mn.

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CSE Dips 0.12% as Profit-Taking Halts Recovery 📉

The Colombo Stock Exchange (CSE) reversed its previous gains as early positive sentiment was overshadowed by mid-session profit-taking, leading to a marginal decline in both key indices. • Market Performance: The ASPI fell by 0.12% (26.97 points) to close at 22,351.55. The S&P SL20 remained nearly flat, dropping 0.01% (0.72 points) to 6,279.70. • Trading Activity: Market turnover exceeded Rs. 4.3 Bn with over 219 million shares traded. Retail investors drove the majority of the volume, while High Net Worth (HNW) activity remained subdued. • Sector Highlights: Diversified Financials: Led the market with a 24% share of daily turnover. Capital Goods & Banking: Collectively contributed 31% to the total turnover. Specific Stocks: Notable retail interest was seen in LCBF, SCAP, SHL, and CRL. • Investor Sentiment: Market breadth was negative, primarily dragged down by MELS, DOCK, CARS, SPEN, and LLUB. • Foreign Interest: Foreign investors were net sellers, resulting in a net outflow of Rs. 21.36 million.

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📉 ASPI Dips Following Early Gains: CSE Daily Market Update

The Colombo Stock Exchange (CSE) experienced a volatile session today, with early morning momentum failing to hold through the close. • Market Performance: The All Share Price Index (ASPI) fell by 26.97 points (-0.12%) to close at 22,351.55. Despite an early surge past the 22,500 mark, the index shifted to negative territory by midday. • Blue Chips: The S&P SL20, representing the market’s top 20 companies, remained largely stable, declining marginally by 0.72 points to end at 6,279.70. • Turnover & Liquidity: Total market turnover stood at a healthy Rs. 4.31 Bn, reflecting active participation across the board. • Investor Participation: • Domestic: Remained the primary driver with Rs. 4.22 Bn in purchases and Rs. 4.20 Bn in sales. • Foreign: Recorded a net foreign outflow of Rs. 22 Mn, with purchases at Rs. 91 Mn against sales of Rs. 113 Mn.

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### Global Market Update: Oil Volatility & Dollar Strength Amid Middle East Conflict 📈

Market Sentiment & Equities • Global markets remain anxious due to contradictory signals from the U.S.-Israel-Iran conflict. • Despite the tension, Asian shares saw a reprieve: Japan’s Nikkei rose 2.1% and South Korea’s Kospi jumped 3.2%. • U.S. futures (S&P 500 and Nasdaq) both added 0.4%, while European EUROSTOXX 50 futures slipped 0.3%. Energy & Oil Prices • Brent crude fluctuated, trading 0.2% higher at US$ 87.89/bbl, while U.S. crude held at US$ 83.47/bbl. • Prices briefly softened following reports that the IEA proposed the largest-ever release of strategic oil reserves to counter supply shocks. • Major risks persist regarding the Strait of Hormuz and potential long-term damage to energy infrastructure. Currencies & Safe Havens • The US Dollar remains the primary safe-haven asset; the Greenback gained 0.1% against the Yen (158.25). • Inflation fears have pressured bond markets, with the U.S. 10-year Treasury yield steady at 4.1460%. • Spot Gold rose 0.5% to US$ 5,215.60/oz as investors balance gains against equity market losses. Economic Outlook • Central banks are expected to maintain a hawkish stance (higher interest rates) to combat potential inflationary spikes driven by energy costs. • Investors are awaiting the U.S. February inflation reading due later today for further direction. _Note: Based on international market data as of March 11, 2026._

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📈 CSE Rebounds 2.17% as Global Oil Prices Ease

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

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Oil Price Slump Triggers Secondary Bond Market Relief Rally 📈

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

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

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

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Startups & Entrepreneurship

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

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

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

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

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

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

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📈 SLCSMI Launches National SME Support Forum to Address Economic Challenges

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

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

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

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

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

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

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

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## Bluechip Technologies Asia Joins SolarX APAC Program 📈

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

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

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

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

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

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

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

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📈 BOC Targets 2,000 Entrepreneurs via Beyond Banking Initiative

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

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Sustainability, ESG & Corporate Responsibility

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UN Global Compact SL Kicks Off 2026 Social Sustainability Agenda 📈

The UN Global Compact Network Sri Lanka has launched its 2026 strategy, transitioning from corporate commitment to practical implementation across human rights, equity, and integrity. Delivered with Good Life X, the program aligns with the 2026–2030 global strategy to enhance long-term business performance. • Core Strategic Pillars: Equipping Companies: Moving beyond CSR to embed social sustainability into governance. Focus areas include equal pay, male allyship, disability inclusion, and mental health as productivity drivers. Human Rights & Ethics: Strengthening due diligence in supply chains, implementing living wages, and addressing emerging risks in AI and digital rights. Collective Action: Utilizing five thematic Working Groups—including Sustainable Supply Chain & SME and Climate Emergency—to drive cross-sector collaboration. • Business Impact: Risk Management: Enhancing resilience against global regulatory evolution and market scrutiny. Investor Confidence: Positioning responsible conduct as a competitive advantage for talent retention and investment. Governance: Integrating anti-corruption frameworks and business integrity into core decision-making. The 2026 agenda emphasizes that social sustainability is a structural determinant of economic growth, shifting the focus to measurable organizational change and science-based behavioral approaches within the Sri Lankan corporate sector.

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Sri Lanka Pioneers Large-Scale Biodiversity Action via Kunming Fund 📈

Sri Lanka has become one of the first nations globally to secure endorsement from the Kunming Biodiversity Fund (KBF). The project, signed by the Ministry of Environment and the FAO, transitions the country from fragmented conservation efforts to a unified national biosecurity system. • Strategic Focus: The initiative targets Invasive Alien Species (IAS), which pose a critical threat to Sri Lanka’s ecosystems, agriculture, and rural livelihoods. It marks the first update to the national priority invasive species list since 2015. • Systemic Upgrades: Policy & Law: Strengthening legislation and institutional coordination. Monitoring: Establishing a national digital monitoring system and enhancing border controls for early detection. Restoration: Implementing community-based ecosystem restoration with post-eradication monitoring. • Economic Impact: The project introduces 'eradication-through-utilization' models. These are designed to generate inclusive livelihood opportunities for women and youth by turning invasive species management into an economic resource. • Global Context: This catalytic international financing aims for long-term transformation rather than short-term outcomes, aligning Sri Lanka’s national priorities with the Kunming-Montreal Global Biodiversity Framework.

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📈 TTE’s Kiruwanaganga Tea Factory Becomes SL’s First Green-Certified Plantation Facility

Talawakelle Tea Estates PLC (TTE), a member of Hayleys Plantations, has secured a Gold rating from the Green Building Council of Sri Lanka for its Kiruwanaganga Tea Factory, marking a milestone in Pure Ceylon Tea sustainability. • Investment & Modernization: The facility represents a Rs. 714.3 million investment. It utilizes a redesigned two-storey layout to reduce its physical footprint and material use without compromising production capacity. • Climate-Smart Technology: The factory integrates AI-enabled machinery and intelligent process controls. Energy needs are supported by a 220 kWp rooftop solar PV system, contributing to significant energy savings and record production volumes. • Resource Efficiency: • Water: Achieved zero use of potable water in factory operations through process optimization. • Carbon: Embodied carbon intensity recorded at 432 kg CO2e/sqm, meeting Asia-Pacific B-rating benchmarks for 2025. • Economic Impact: The modernization has driven auction-leading prices and the highest gross sales averages in the factory's history, strengthening the global competitiveness of the tea sector. This certification underscores the transition of the plantation sector toward future-ready, carbon-smart manufacturing to meet evolving global buyer demands. _Source: Provisional data as of March 2026_

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### Commercial Bank Reinforces Ethics and Inclusion Framework 📈

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

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

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

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

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

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Darley Butler Launches "We Must Change" Sustainability Campaign 🌍

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

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

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

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

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

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

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

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

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

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Youth-Led Circular Economy Forum Debuts in Jaffna 📈

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

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Awards & Recognitions

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Ogilvy Group Secures 6 Metals at 2025 SLIM Effie Awards 📈

The Ogilvy Group Sri Lanka demonstrated significant creative effectiveness at the 2025 SLIM Effie Awards, clinching one Gold, three Silver, and two Bronze metals, alongside eight finalist recognitions. The awards highlight the impact of marketing campaigns on national priorities such as sustainability, tourism, and social responsibility. • Top Performing Campaigns “When the Trees Lament” (El Toro): This sustainability focused campaign by Ogilvy Digital was the night's big winner, securing one Gold (Experiential Marketing), two Silvers, and one Bronze. It addressed deforestation in the construction sector, attracting 20,000+ visitors to a symbolic installation. “Relive the Epic of Ramayana” (SriLankan Airlines): Phoenix Ogilvy earned a Silver in the Travel and Tourism category. This campaign, previously an APAC Effie winner, remains a benchmark for promoting the Ramayana Trail to regional travelers. “Take the Load Off Her Head” (Singer): Ogilvy Digital secured a Bronze in Home Furnishings, focusing on easing domestic burdens for women through modern appliances. • Economic & Sector Impact Tourism: The Group’s work for the national carrier continues to elevate Sri Lanka’s global visibility as a heritage destination. Construction & Sustainability: Campaigns pushed for a shift from timber to sustainable alternatives, aligning with global ESG trends. Advertising & Media: The success across Digital, Creative, and Media agencies underscores the growing sophistication of Sri Lanka's ICT/BPM and creative services sector.

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### 📈 Road to Cannes: Metal Factor Opens 2026 Yong Lye Peng Scholarship

Metal Factor has announced the second edition of its Next Generation Program, offering a Rs. 1 million sponsorship for a senior Sri Lankan professional to attend the Cannes Lions International Festival of Creativity 2026 in France. • Objective: The initiative aims to invest in the next generation of leadership within the advertising industry, providing exposure to world-class standards, global networking, and award-winning work. • Eligibility: Open to senior professionals aged 35–50 with a minimum of 10 years of experience in the advertising sector. • Legacy & Funding: The scholarship is funded by Douglas Khoo in memory of Yong Lye Peng, facilitating global recognition for Sri Lankan creative talent. • Impact: Last year’s recipient, Harendra Uyanage of MullenLowe, utilized the scholarship to gain invaluable global insights, which have been integrated back into the local industry. This program, led by Metal Factor, continues to serve as a bridge for the local creative & marketing sectors to achieve international benchmarks and drive industry growth in the 2020s.

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Artslab Creatives Secures Four Effie Awards for AI Innovation 📈

Independent digital agency Artslab Creatives achieved significant recognition at the Effie Awards Sri Lanka 2025, winning four awards for campaigns centered on social impact and technological innovation. • Key Achievements: 2 Silver Awards: For the "Forward and Fearless" campaign with Fems Sri Lanka. 1 Bronze Award & 1 Finalist: For the "Yahagunakam - Rasa Siththam" campaign for Maliban Biscuit Manufactories (in partnership with MullenLowe). • Innovation Highlights: The agency pioneered Sri Lanka’s first use of AI deepfake technology for social good, utilizing it to amplify menstrual health awareness rather than misinformation. The campaign secured a Silver in the AI category (where no Gold was awarded) and another in Experiential Marketing (Digital). • Economic Context: As an independent firm founded in 2020, Artslab’s success against established marketing organizations highlights the growing competitiveness of Sri Lanka's ICT/BPM and digital marketing sectors. The focus on AI-driven innovation and purpose-led strategy demonstrates the potential for local boutique agencies to drive high-value service exports and digital transformation within the domestic manufacturing and FMCG sectors.

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📈 Commercial Credit Leads K Seeds Finance Sector Rankings

Commercial Credit and Finance PLC has secured the top position in the "Category 1" (assets > Rs. 100 Bn) ranking by K Seeds Investments for Q3 of the 2025/26 financial year. The report evaluated 30 listed finance companies based on 10 equally weighted KPIs. • Sector Performance: The non-banking financial institution (NBFI) sector saw strengthened credit demand driven by GDP recovery, low inflation, and accommodative monetary policy. • Key Drivers: Lower interest rates boosted leasing, vehicle financing, and SME loans. Despite the impact of Cyclone Ditwah, the sector showed resilience with improved loan repayment capacities and reduced NPLs. • Company Highlights: Commercial Credit maintained its leadership through strong performance in metrics such as Return on Equity (ROE), Net Interest Margin (NIM), and Loan Growth. • Market Context: While profitability faced slight pressure from declining interest margins and intense competition, the overall environment was bolstered by IMF-supported reforms and enhanced investor confidence. Rankings by Asset Base: • Category 1: > Rs. 100 Bn (Commercial Credit - 1st) • Category 2: Rs. 50 Bn – Rs. 100 Bn • Category 3: Rs. 20 Bn – Rs. 50 Bn • Category 4: < Rs. 20 Bn

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Dipped Products PLC (DPL) Marks 50 Years with CSE Bell Ringing 📈

• Overall Milestone: Dipped Products PLC (DPL), a member of the Hayleys PLC group, celebrated its golden jubilee (50th anniversary) by ringing the market opening bell at the Colombo Stock Exchange (CSE). • Company Profile: Founded in 1976 and listed since the CSE's inception, DPL is a global leader in protective handwear and plantation management, exporting to over 70 countries. • Economic Impact: • Recognized as a key contributor to the rubber products sector and the broader export economy. • Winner of Presidential Export Awards for "Innovative Export" and "Best Exporter" in the latex rubber category. • Leverages premium natural rubber sourcing to drive national development and local livelihoods. • Strategic Focus: Leadership emphasized a 50-year commitment to innovation, resilience, and good governance. The company aims to continue its trajectory of sustainable growth and long-term value creation for stakeholders. • Context: The event underscores the strength of Sri Lanka’s manufacturing and diversified conglomerates on the global stage.

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Dipped Products PLC (DPL) Marks 50 Years with CSE Bell Ringing 📈

• Overall Milestone: Dipped Products PLC (DPL), a member of the Hayleys PLC group, celebrated its golden jubilee (50th anniversary) by ringing the market opening bell at the Colombo Stock Exchange (CSE). • Company Profile: Founded in 1976 and listed since the CSE's inception, DPL is a global leader in protective handwear and plantation management, exporting to over 70 countries. • Economic Impact: • Recognized as a key contributor to the rubber products sector and the broader export economy. • Winner of Presidential Export Awards for "Innovative Export" and "Best Exporter" in the latex rubber category. • Leverages premium natural rubber sourcing to drive national development and local livelihoods. • Strategic Focus: Leadership emphasized a 50-year commitment to innovation, resilience, and good governance. The company aims to continue its trajectory of sustainable growth and long-term value creation for stakeholders. • Context: The event underscores the strength of Sri Lanka’s manufacturing and diversified conglomerates on the global stage.

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Ceylon Planters’ Provident Society (CPPS) Celebrates Centenary 📈

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

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📈 Browns Plantations Secures 13 Major Accolades in 2025

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

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

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

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

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

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MullenLowe Sri Lanka Dominates Effie Awards 2025 📈

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

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New Media Solutions Dominates Effie Awards Sri Lanka 2026 📈

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

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Product & Service Launches / Business Expansion

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

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

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

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

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

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

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

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

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

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

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AIBL Secures Reinsurance Broking Licence for Global Market Access 📈

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

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Roar Global Scales South Asian Presence in Bangladesh and Nepal 📈

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

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Appointments & Executive Moves

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UTASL Appoints New Board Amid Significant Sector Growth 📈

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

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Agility Innovation Names Vasabha Bulathsinhala as Group CEO 📈

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

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New Leadership for COYLE: Suren Chandraratna Appointed Chairman 📈

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

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### 👔 Teejay Lanka Appoints Teruo Funahashi as Non-Executive Director

Teejay Lanka PLC has officially appointed Teruo Funahashi to its Board as a Non-Executive Director, effective March 2026. Funahashi brings over 40 years of global expertise in the textile and synthetic fiber industries. • Professional Background: A graduate of Seijo University, Funahashi has held extensive leadership roles within Toray Industries, Inc. (Japan), a major stakeholder in the global apparel & textiles supply chain. • Key Experience: Global Operations: Served in senior management roles across Japan, Indonesia, China, and Hong Kong, specializing in industrial materials and fiber divisions. Current Leadership: Recently served as Managing Director of Toray Industries (H.K.) Ltd. and Deputy Managing Director of Toray Industries (China) Co., Ltd. • Future Role: Effective 1 April 2026, Funahashi will transition to Pacific Textiles as Executive Director, Chairman of the Board, and CEO. • Strategic Impact: His appointment strengthens Teejay Lanka’s board with deep technical knowledge of synthetic fibers and regional market dynamics, critical for the company's continued growth in the apparel export sector. 📈

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### Ruwan Rajapakse Appointed as MD/Executive Director of Hayleys Fibre 📈

Hayleys Fibre PLC has officially announced the appointment of Ruwan Rajapakse as its new Managing Director and Executive Director, effective from 1 April 2026. • Professional Profile: Rajapakse brings over 30 years of professional experience, including more than 20 years of international exposure in global manufacturing, agriculture, and international trade. • Key Leadership Experience: • Previously served as Global Chief Production Officer for the Jiffy Group (Netherlands), overseeing operations across Europe, North America, and Asia. • Former Director/CEO of Hayleys Agri Horticulture Sector. • Held senior leadership roles at Hayleys Advantis and Maersk Line, specializing in logistics and global trade strategy. • Academic & Technical Background: • Holds an MBA (University of Colombo) and a BSc (University of Kelaniya). • Certified Management Accountant (CMA – Australia) and Lean Six Sigma Black Belt qualified. This strategic leadership transition leverages Rajapakse’s extensive expertise in supply chain management and export-related organizations to drive the company’s global market development.

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📈 Renuka Weerakone Appointed as BOI Director General

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

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Pay&Go CEO Vardan Aslibekyan Joins Fintech Forum Board 📈

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

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Banking Veteran Jonathan Alles Joins Singer Finance Board 📈

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

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Dr. Dewasiri Jayantha Appointed as CEO of PMF Finance 📈

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

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

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

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

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

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RDB Bank Appoints New Directors to Drive Development Mandate 📈

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

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Regulatory & Policy News

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⚠️ CEB Debenture Transfer to Private Entity Sparks Legal Concerns

A formal concern has been raised by investors regarding the "assignment" of the Ceylon Electricity Board (CEB) debenture liabilities to a newly created private company as part of the sector's restructuring. • Core Issue: Under standard contract law, a debtor (CEB) cannot transfer obligations to a third party without the consent of the creditors (debenture holders). • Investor Protection: Concerns focus on whether the Government of Sri Lanka still backs the debt and if the transfer violates the original Debenture Trust Deed. • Market Impact: The lack of transparency in this administrative restructuring threatens investor confidence in Sri Lanka’s capital markets and listed securities. • Key Requirements: Stakeholders are calling for a clear legal basis for the liability transfer and confirmation of whether the original issuer (CEB) remains liable.

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CUBA Meets IRD Over SME Tax Concerns 📈

• Ceylon United Business Alliance (CUBA) officials met with the Inland Revenue Department (IRD) to address critical challenges facing the Small and Medium Enterprise (SME) sector. • Key Discussion Points: The impact of current taxation policies, specifically focusing on Value Added Tax (VAT). The operational difficulties faced by SME operators under prevailing economic conditions. • Next Steps: The IRD has requested a formal written submission from CUBA outlining specific issues and proposed solutions regarding VAT adjustments. Both parties expressed a commitment to continued dialogue to ensure the sustainability and growth of the SME sector, which is a vital driver of national employment. _Note: Summary based on reports of the meeting held on March 12, 2026._

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Retired Civil Security Auditor Granted Bail in Unexplained Assets Case ⚖️

• Legal Development: The Colombo Chief Magistrate granted bail to U.K. Sumanasekara, a retired auditor of the Department of Civil Security, following an investigation by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). • Case Details: The investigation centers on assets totaling Rs. 4.42 million allegedly accumulated over a 28-month period, which the suspect reportedly failed to explain relative to his declared income. • Defence Submission: Counsel argued the funds were legitimate, citing proceeds from the sale of four vehicle permits placed in fixed deposits. Additional income sources mentioned included financial support from family members holding positions in higher education (Australia), government administration, and the Police. • Court Conditions: Bail was set at Rs. 500,000 with two sureties, accompanied by a foreign travel ban. The Magistrate noted that primary investigations have concluded. • Next Steps: CIABOC is required to provide an update on further proceedings on July 28, 2026.

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Drug Trafficking Named Top Money Laundering Threat in Sri Lanka 📈

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

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

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

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TISL Probes Coal Procurement Irregularities via RTI 📈

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

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### SEC Launches Storybook to Boost Financial Literacy 📚

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

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

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

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📈 SLTDA Facing Credibility Test Over Enforcement Delays

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

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

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

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

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

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📈 Cabinet Tightens Maize Import Controls to Protect Local Farmers

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

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Corporate News

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Hayleys PLC to Raise Rs. 7 Bn via CSE Debenture Issue 📈

The Colombo Stock Exchange (CSE) has granted in-principle approval for Hayleys PLC to raise up to Rs. 7 billion through a listed debt issuance. This move by the diversified conglomerate supports corporate financing and capital market depth. • Issue Structure: Initial offer of Rs. 5 billion (50 million debentures), with an option to issue an additional Rs. 2 billion in the event of oversubscription. • Debenture Types: • 5-Year Fixed: 10.6% p.a. (10.88% effective annual rate). • 5-Year Floating: 1-year T-Bill rate + 2% (Floor: 9.5% / Cap: 11.5%). • 7-Year Fixed: 11.15% p.a. (11.46% effective annual rate). • Key Dates: Subscription list opens on March 17, 2026. Prospectus was made available to trading participants on March 11. • Instrument Details: Listed, rated, unsecured, senior, redeemable debentures with a par value of Rs. 100 each. Interest to be paid semi-annually. • Management: Commercial Bank of Ceylon PLC serves as the Joint Manager, with SSP Corporate Services Ltd as Registrar. This issuance reflects continued activity in the diversified holdings sector, providing investors with fixed-income opportunities across medium to long-term tenors.

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Melstacorp Trims Stake in DCSL via Rs. 118M Share Sale 📈

• Overall Transaction: Melstacorp PLC divested 2 million shares of its flagship subsidiary, Distilleries Company of Sri Lanka (DCSL), on March 11, 2026. • Financials: The shares were sold at a price of Rs. 59 per share, totaling a transaction value of approximately Rs. 118 million. • Shareholding Impact: • Previous Holding: 4,250,264,664 shares (92.40%) • New Holding: 92.35% • Context: Despite this marginal reduction, Melstacorp retains overwhelming control of the beverage and spirits giant, which remains a core pillar of the group's investment portfolio and a significant contributor to the national manufacturing sector.

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📈 President Meets CEB Unions to Discuss Power Sector Restructuring

President Anura Kumara Dissanayake met with Ceylon Electricity Board (CEB) engineers’ trade unions yesterday at the Presidential Secretariat to outline the government's strategy for restructuring the state-owned utility. • Core Objectives: The restructuring aims to enhance efficiency, ensure energy security, and provide an uninterrupted electricity supply at fair prices. • Ownership & Rights: The President confirmed that the government will maintain ownership of the new entities established under the framework. He further assured that current employee rights and benefits will be protected. • Operational Reforms: The transition will address longstanding institutional issues. A formal mechanism was proposed to maintain dialogue between employees and management during the long-term reform process. • Stakeholder Alignment: Trade union representatives acknowledged the necessity of reforms and expressed a willingness to collaborate constructively with the government. • Key Participants: The meeting included Energy Minister Kumara Jayakody and Deputy Minister Arkam Ilyas, emphasizing a unified approach to transforming the power & energy sector. Based on official presidential communications (provisional reports).

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📈 John Keells Hotels to Divest Cinnamon Citadel for Rs. 2.78 Bn

John Keells Hotels PLC has entered into a binding agreement to sell its 98.39% majority stake in Kandy Walk Inn Ltd (KWIL), the owning entity of the Cinnamon Citadel hotel in Kandy, to Lavendish Leisure (part of the Dedigama Group). • Transaction Value: The deal is valued at Rs. 2.777 billion and is expected to be finalized by 31 March 2026. • Strategic Shift: The divestment aligns with the group’s asset-light strategy for its hospitality sector. • Brand Management: Cinnamon Citadel will remain under the Cinnamon Hotels & Resorts brand for a minimum of 12 months before a planned review. • Reinvestment: Proceeds will be utilized to upgrade the existing tourism portfolio, following the recent launch of Kandy Myst by Cinnamon, where the group retains a 40% stake. • Sector Impact: This move reflects ongoing consolidation and capital reallocation within Sri Lanka’s leisure and travel industry to optimize property positioning.

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Ex-SriLankan Airlines CEO Arrested Over $2 Mn Airbus Bribe ⚖️

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has arrested former SriLankan Airlines CEO Kapila Chandrasena following a lengthy statement recorded yesterday. • Core Allegation: The arrest is tied to a controversial deal involving Airbus aircraft, where Chandrasena is alleged to have accepted a bribe totaling US$ 2 million. • Context: The investigation centers on procurement irregularities that have long been a focal point of transparency concerns within the aviation sector and state-owned enterprises. • Legal Action: The suspect was taken into custody after appearing before CIABOC to provide testimony regarding the financial transactions linked to the fleet acquisition. This development marks a significant step in addressing historical corruption allegations within the transportation and tourism infrastructure of Sri Lanka.

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Link4 Acquires Unifiedpost to Solidify Asia-Pacific e-Invoicing Leadership 📈

• Transaction Overview: Link4 has announced the 100% share acquisition of Singapore-based Unifiedpost Pte Ltd from Banqup Group SA, integrating all assets and customer relationships. • Strategic Impact: The move strengthens Link4’s position within Singapore’s InvoiceNow network and the broader APAC region. It enhances the company’s recurring revenue base and regional footprint as governments accelerate digital mandate programs. • Transition Details: • Unifiedpost’s IMDA accreditations (Access Point and IRSP) will terminate on 31 March 2026. • Existing customers will migrate to Link4’s established accreditation to ensure service continuity. • GST-registered businesses continue to access services free of charge under IMDA support. • Market Context: Founded in 2016, Link4 provides ICT/BPM solutions via the Peppol framework, integrating with major ERP systems to automate accounts payable and receivable. This acquisition scales their capacity to support digital trade and regulatory compliance across Asian jurisdictions. • Outlook: CEO Robin Sands highlighted Singapore as a "strategic digital trade hub," with the firm focusing on sustainable ARR growth driven by expanding e-invoicing mandates across the Asia-Pacific.

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Kerner Haus Global Solutions Proposes 1-for-70 Share Subdivision 📈

The Board of Kerner Haus Global Solutions PLC has recommended a major subdivision of ordinary voting shares to enhance market liquidity, as disclosed to the Colombo Stock Exchange. • Subdivision Ratio: Each existing ordinary voting share will be subdivided into 70 shares. • Share Count: Total issued shares will increase from 600,170 to 42,011,900 shares post-exercise. • Capital Position: The stated capital remains unchanged at Rs. 30.36 Mn. • Market Context: Shares recently traded at Rs. 2,381.50 (down Rs. 74). The company reported net liabilities of Rs. 76 per share as of Dec-2025. • Ownership Structure: Ekta Global Ltd remains the majority shareholder (63.62%), with a public float of 27.40%. The move is subject to CSE concurrence and shareholder approval at an upcoming EGM. Based on provisional CSE disclosures.

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### Ceylon Chamber Archives Entrusted to National Archives 📈

The Ceylon Chamber of Commerce (CCC) has formally handed over its historical records spanning 1839 to 1973 to the National Archives Department, preserving over a century of Sri Lanka’s commercial and trade evolution. • Historical Scope The collection includes correspondence, meeting minutes, and ledgers from the Chamber’s founding in 1839 (one of Asia’s earliest) through 1973. It chronicles the growth of the export economy, specifically in tea, rubber, coffee, and coconut oil. • Economic Milestones The archives document the Chamber’s pivotal role in: Establishing the island's renowned tea and rubber auctions. Advocating for the Colombo Port development over Galle, citing navigational and hinterland advantages. Influencing infrastructure, including the Colombo–Kandy railway and the first telegraphic link to India (1858). • Institutional Legacy The records highlight the formation of key bodies that shaped the modern business environment, such as the Employers’ Federation of Ceylon, the Mercantile Service Provident Society, and early alternative dispute resolution (arbitration) frameworks. • Significance This move ensures public and researcher access to the "commercial heartbeat" of the nation, documenting the ingenuity and ethical standards that built Sri Lanka’s trade and industry foundations. _Source: CCC Official Release (Provisional)_

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📈 AIA Group Chairman Meets Foreign Minister to Discuss Expansion

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

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📈 Maharaja Foods Rights Issue Oversubscribed by 197%

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

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

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

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

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

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Global & International Business

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Chamber Hosts High-Level Diplomatic Networking to Boost Trade 📈

The Ceylon Chamber of Commerce convened a high-level evening in Colombo, bringing together diplomats from nearly 50 countries, government officials, and private sector leaders to strengthen international economic ties. • Strategic Collaboration: Acting Minister of Foreign Affairs Arun Hemachandra emphasized that public-private-diplomatic synergy is essential for expanding exports and fostering sustainable development. • Economic Outlook: The Ministry highlighted a steady recovery across the agriculture, industry, and services sectors, backed by strengthened fiscal management. • Market Expansion: Chairperson Krishan Balendra noted the event’s role in helping members discover new markets and diversify export portfolios through direct diplomatic engagement. • Diplomatic Recognition: The presence of Ambassadors and High Commissioners underscores the Chamber's position as the primary bridge between Sri Lanka's private sector and global partners. The session focused on forging long-term partnerships to drive foreign investment and enhance Sri Lanka's integration into global value chains.

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📈 EDB Meets Export Associations to Mitigate Middle East Crisis Impact

The Export Development Board (EDB) convened a high-level briefing with key private and public stakeholders to address logistical and trade disruptions caused by the ongoing Middle East conflict. The goal is to establish a support framework to be presented at the upcoming Export Development Council of Ministers (EDCM). • Strategic Sectors Involved: Representatives from the tea, spices, coconut-based products, food & beverages, and fruits & vegetables sectors participated to highlight regional volatility risks. • Supply Chain Mitigation: The Sri Lanka Freight Forwarders Association and the Ceylon Association of Shipping Agents joined the dialogue to address rising freight concerns and ensure the continuity of export operations. • Institutional Collaboration: Key government bodies, including the Sri Lanka Tea Board and the Department of Fisheries & Aquatic Resources, emphasized a unified approach to protect the interests of exporters. • Key Objective: To identify immediate assistance measures for exporters and minimize the impact of regional instability on Sri Lanka's trade balance and employment within these vital industries.

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### 🍵 Ceylon Tea Showcases Excellence at Prodexpo 2026, Russia

Sri Lanka reinforced its position as a premier global supplier at Prodexpo 2026 in Moscow, the largest food and beverage exhibition in Russia and Eastern Europe. • Participation & Branding 14 Sri Lankan tea companies participated, with 8 featured under the Sri Lanka National Pavilion. The pavilion, sponsored by the Sri Lanka Tea Board, showcased unified branding to promote authentic Ceylon Tea in one of its most critical export markets. • Market Engagement Buyers and distributors engaged in liquid tea tasting sessions featuring 7 distinct regional teas, highlighting diversity across agro-climatic regions. The Embassy of Sri Lanka facilitated onsite B2B meetings between exporters and Russian buyers to secure long-term trade partnerships. • Quality & Compliance Organized factory visits demonstrated the "Honest Mark" digital traceability and marking process. This initiative focused on strengthening regulatory adherence and quality assurance for the Russian retail sector. • Strategic Impact The event served to deepen commercial ties through a high-level Business Networking Dinner hosted by Ambassador Shobini Gunasekera, aimed at expanding the market share of Ceylon Tea via direct engagement with leading Russian importers and retailers. _Source: Based on reports from Prodexpo 2026 (March 12, 2026)_

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Sri Lanka Expo 2026: Global Trade Partnerships Strengthened 📈

The Export Development Board (EDB) has initiated high-level diplomatic engagements to promote Sri Lanka Expo 2026, scheduled for June 18–21 at the BMICH, Colombo. The mission aims to position the nation as a competitive hub for trade and investment. • Strategic Engagements: A delegation led by the Minister of Industry and Entrepreneurship Development met with heads of missions from the UK, Indonesia, and South Korea to secure international buyer and investor participation. • Key Export Sectors: The Expo will showcase core industries including Apparel, Tea, Spices, Rubber products, ICT services, Food & Beverages, and Industrial Manufacturing. • Objective: Strengthening bilateral ties and fostering strategic collaborations between Sri Lankan exporters and global markets to drive economic diversification. • Status: Based on official EDB scheduling for Q2 2026.

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

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

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📈 Govt. & CEOs Align on New National Export Roadmap

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

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

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

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

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

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

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

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

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

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

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

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

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

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Uncategorized

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🚨 CID Reopens Probe into Makandure Madush Custodial Killing

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

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

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

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UNICEF Reports Staggering Child Casualties in Lebanon 🇱🇧

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

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

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

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

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

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

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

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## Thousands Gather for Annual Katchatheevu Feast 2026 ⛪

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

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

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

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Major Arrest in Akuregoda Double Murder Case ⚖️

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

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

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

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Financial & Investment News

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

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

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

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

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

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

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

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

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

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

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Understanding Fixed Income: Bonds & the Sri Lankan Market 📈

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

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

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

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

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

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Unit Trust Industry Hits Rs. 610 Bn Asset Milestone 📈

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

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## 📈 Understanding Unit Trust Disclaimers in Sri Lanka

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

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

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

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📈 SME Forum: SEC & CSE Target Regional Business Growth

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

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Strategic Partnership, Product & Service Launches / Business Expansions

**Politics & Government Impact**

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

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

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

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

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**Product & Service Launches / Business Expansions**

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

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

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

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

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Political & Government Impact

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

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

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**Appointments & Executive Moves**

📈 SriLankan Airlines: Restructuring & Leadership Update

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

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**Industry & Sector News**

**Global & International Business**

Sri Lanka Boosts Global Export Profile at Ambiente Frankfurt 2026 📈

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

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

Industry & Sector News **

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

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

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