Business360LK ⚡ 🇱🇰

Zero-lag Sri Lankan Business News

Stay informed while you drive

NOW PLAYING

1 / 5
**Politics & Government Impact**

## 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._

1:03-1:57
75%
🎧

Listen to Today's Business News Playlist

🚗

Listen While Driving

⚡️

Real-Time Updates

🎯

Smart Playlists

Latest Business News

**Politics & Government Impact**

## 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._

Read more →

🤝 India Reaffirms Strategic Partnership with JVP Delegation

Key Interaction: Indian External Affairs Minister Dr. S. Jaishankar met with JVP General Secretary Tilvin Silva to discuss strengthening bilateral ties and regional cooperation. Strategic Support: India reaffirmed its role as a "true and trusted partner," citing its consistent support during Sri Lanka’s recent economic crisis and humanitarian assistance following Cyclone Ditwah. Development Focus: The dialogue centered on growth opportunities, social welfare initiatives, and inclusive development, aligning with Sri Lanka’s ongoing recovery efforts. Regional Context: The meeting highlights continued high-level engagement between New Delhi and Colombo across political and economic sectors to bolster regional partnerships.

Read more →

Politics & Government Impact

(60)

⚖️ Daisy Forrest Released from Money Laundering Case The Colombo High Court has ordered the release of Daisy Forrest, grandmother of Yoshitha Rajapaksa, from the long-standing case filed under the Prevention of Money Laundering Act.

• Court Decision: High Court Judge Udesh Ranatunga issued the order after reviewing a special psychiatric report from the Colombo Judicial Medical Officer. • Medical Grounds: A panel of specialist doctors certified that the 98-year-old accused is not in a suitable mental condition to stand trial. • Remaining Accused: While Forrest has been discharged, the Attorney General’s Department confirmed that proceedings will continue against the first accused, Yoshitha Rajapaksa. • Case Background: The legal action involves allegations of laundering approximately Rs. 59 million (with some reports citing up to Rs. 73 million) through three private bank accounts. • Legal Procedure: The prosecution will file an amended indictment to proceed with the trial solely against Rajapaksa. Based on official court submissions as of February 25, 2026.

Read more →

📈 Sri Lanka Economic Summary: The Reality of 2026

The "new era" of governance faces a transition from campaign rhetoric to "structural compliance." Despite promises of radical change, the National People's Power (NPP) administration has largely maintained established macroeconomic frameworks to ensure stability. • Overall Fiscal Figures GDP Growth: Projected at 3.1% for 2026, following a recovery phase. Budget 2026: Targets total revenue of Rs. 5,300 Bn against an expenditure of Rs. 7,057 Bn. Primary Balance: A surplus goal of 2.3% of GDP is maintained to meet IMF debt sustainability targets. Public Debt: Projected to decline to 96.8% of GDP by year-end, down from 114.2% in 2022. • Sector & Policy Breakdowns Energy: Despite pledges to slash tariffs by 30%, electricity rates remain tied to global oil prices and a depreciating Rupee; CEB is managing a Rs. 22.7 Bn revenue requirement for Q1 2026. Taxation: VAT and SSCL registration thresholds will be lowered from Rs. 60 Mn to Rs. 36 Mn annually, effective April 1, 2026, to broaden the tax base. Apparel & Manufacturing: Sector faces pressure from global tariff volatility and the requirement to reapply for EU GSP+ benefits in 2026. Accountability: Anti-corruption efforts have shifted toward "performative accountability" with high-profile arrests, but have yet to recover significant "stolen assets" to plug the budget deficit. • Top Challenges External Shocks: Recovery was hampered by Cyclone Ditwah, causing an estimated US$ 4.1 Bn in damage. Debt Servicing: Sri Lanka continues to service foreign debt, with full repayments scheduled to resume in 2028.

Read more →

Trump Proposes Replacing Income Tax with Tariffs in 2026 Address 📈

U.S. President Donald Trump, in his 2026 State of the Union address, doubled down on a protectionist agenda, claiming tariffs will eventually replace the modern income tax system to "take the burden off Americans." • New 15% Global Tariff: Following a Supreme Court ruling that struck down previous emergency duties, a new 15% import surcharge has been signed under Section 122 of the Trade Act. This "temporary" measure (valid for 150 days) takes effect almost immediately. • Impact on Sri Lanka: The U.S. remains Sri Lanka's largest export market (US$ 2.8–3.0 Bn annually). While the new 15% rate is lower than the 20%–44% levels negotiated or threatened in 2025, it still disrupts stable market access for local exporters. • Apparel & Textiles: This sector is most vulnerable, accounting for nearly 40% of Sri Lanka's U.S. exports. Industry experts warn that even a 15% duty keeps local garments more expensive than regional rivals like Vietnam or Indonesia, risking a volume drop of 10%–15%. • Key Sectors at Risk: • Rubber: Previously projected to see a 40%+ export decline under high-tariff scenarios. • Tea & Coconut: Facing increased pricing pressure in a critical hard-currency market. • Economic Outlook: Based on provisional 2026 data, the U.S. trade-weighted effective tariff rate remains at historic highs. Sri Lankan officials continue to lobby for reciprocal "deals" to avoid long-term diversions of orders to competing hubs.

Read more →

New Envoys from Cuba, Qatar, and Slovenia Present Credentials 🤝

Ambassadors-designate from Cuba, Qatar, and Slovenia formally presented their Letters of Credence to President Anura Kumara Dissanayake at the Presidential Secretariat on February 24, 2026. • Diplomatic Appointments: Cuba: Ambassador Patricia Lázara Pego Guerra (Resident in Colombo). Qatar: Ambassador Hamad Mohammed Abdullah Al-Sanad Al-Dosari (Resident in Colombo). Slovenia: Ambassador Tomaž Mencin (Resident in New Delhi). • Strategic Context: The formalization of these ties facilitates continued cooperation in key sectors, including Foreign Employment, Tourism, and trade. Both the Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, and the Secretary to the President, Dr. Nandika Sanath Kumanayake, were present. Following the ceremony, discussions were held on strengthening bilateral relations between Sri Lanka and the respective nations. (Based on provisional reporting from the Presidential Secretariat) 📈 ---

Read more →

BALPP Policy Brief: Leadership Lessons from China & India for Sri Lanka 📈

The Bandaranaike Academy for Leadership and Public Policy (BALPP) has released a strategic brief, "Policy and Power," comparing the development trajectories of the region's two giants to provide a roadmap for Sri Lankan governance. • Global Strategies: The brief analyzes China’s centralized, long-term strategic planning alongside India’s democratic, reform-driven economic expansion. It examines how these differing leadership structures influence national transformation and policy continuity. • Key Focus Areas: • Relationship between leadership models and national development. • Institutional capacity and strategic autonomy. • Comparative governance approaches for sustained economic advancement. • Recommendations for Sri Lanka: The brief highlights the urgent need for strengthening governance frameworks and building institutional resilience. It advocates for "selective adaptation" of international best practices, ensuring they are anchored in democratic accountability and tailored to Sri Lanka's specific context. • Conclusion: The publication, based on high-level roundtable discussions, aims to inform long-term development planning and strategic leadership in Sri Lanka. _Summary based on BALPP policy brief data (February 2026)._

Read more →

Sri Lanka’s Economic Progress Stalled by Persistent Racism 📈

• Overall Context: Sociological analysis indicates that systemic racism remains a significant barrier to Sri Lanka's peace and prosperity. While prejudice exists across all communities, modern racism is driven by power inequalities and ethno-nationalist narratives. • Policy & Governance: • Article 9 of the Constitution, which grants Buddhism "foremost place," is identified as a primary driver of majoritarian nationalism and administrative bias. • Despite the NPP Government’s secular stance, there are currently no formal proposals to abolish Article 9 due to potential political instability. • President Anura Dissanayake has pledged to eradicate racism, but experts argue that "symbolic rhetoric" must be replaced by measurable affirmative action and institutional restructuring. • Economic & Social Impact: • Trade & Commerce: Economic racism manifests as threat perceptions where minorities are accused of dominating trade, leading to boycotts and the "othering" of contributing communities. • Employment & Education: Systematic disparities persist in healthcare, education, and employment sectors due to ethnic profiling and lack of inclusivity. • Drivers of Instability: Key factors keeping racism "alive and kicking" include political polarization, digital misinformation on social media, and the misuse of religious symbols by radical groups. • Current Status: Based on recent incidents, such as communal tensions in Trincomalee (Nov 2025), the rule of law faces challenges when balancing constitutional religious protections with equal enforcement. Progress requires deep policy reform and educational pluralism to drive long-term change.

Read more →

📢 Namal Rajapaksa’s Cambridge Speech Cancelled Amid Protests 🇬🇧

SLPP MP Namal Rajapaksa has commenced a high-profile visit to the United Kingdom, though his scheduled engagement at the Cambridge Union was cancelled following security concerns and anticipated protests. • Key Developments: • Cambridge Union address called off due to security risks. • Oxford Union speech and community meetings remain on schedule. • Commenced visit at the London Buddhist Vihara during its centenary year. • Economic & Political Context: • Engagements with the Sri Lankan diaspora in the UK are expected to focus on community relations. • Public demonstrations in the UK reflect ongoing international scrutiny regarding Sri Lankan political leadership and governance. • Current Status: Based on latest reports, the MP continues his itinerary with scheduled diplomatic and community interactions across the UK.

Read more →

📈 President Dissanayake and PM Modi Strengthen Indo–Lanka Strategic Ties

President Anura Kumara Dissanayake met Indian PM Narendra Modi today at Hyderabad House, New Delhi, during the AI Impact 2026 Summit. The discussions centered on transitioning the bilateral relationship from emergency assistance toward long-term economic and technological integration. • Economic & Trade Cooperation Talks focused on enhancing bilateral trade (valued at ~US$ 5.5 Bn in FY 2023-24) and finalizing a proposed FTA in services to boost the ICT/BPM and tourism sectors. Priority areas identified for investment include energy (grid interconnection), infrastructure, and the blue economy. India remains the largest source market for tourism, contributing over 20% of total arrivals. • Disaster Recovery & Support President Dissanayake expressed gratitude for India's US$ 450 Mn assistance package following Cyclone Ditwah. Support includes US$ 350 Mn in concessional credit lines (in Indian Rupees) and US$ 100 Mn in grants for restoring transportation and housing. • Strategic Digital Integration Both leaders explored collaboration in Artificial Intelligence and Digital Public Infrastructure (DPI), including Sri Lanka's digital identity project currently in the tendering phase. _Note: Trade figures and recovery costs are based on provisional 2025/26 data._

Read more →

SL Joins 100+ Nations Condemning West Bank Annexation 📈

Sri Lanka has officially signed a joint statement alongside over 100 countries and global blocs (including the EU and OIC) to reject Israel’s unilateral measures and potential annexation of the occupied West Bank. • Diplomatic Stand: The move reinforces Sri Lanka's historical support for Palestinian self-determination and a negotiated two-state solution based on 1967 borders. • Key Allegations: The statement condemns "unlawful presence" and measures aimed at altering the demographic character of the territory, including East Jerusalem. • Global Alignment: Initially omitted from the first list of 85, Sri Lanka joined a subsequent wave of signatories including India, China, Japan, and the UK. • Economic/Political Context: While primarily a geopolitical stance, such multilateral engagement reflects Sri Lanka's commitment to international law and its positioning within the Global South and broader Afro-Asian diplomatic circles.

Read more →

Opposition Urges Humanitarian Appeal for Imran Khan 📈

• Context: Opposition MP Ajith P. Perera submitted an adjournment motion in Parliament on February 19, 2026, regarding the detention of former Pakistani Prime Minister Imran Khan. • Key Concerns: The motion cites "credible reports" concerning Khan’s health and wellbeing while in custody, urging the Sri Lankan Government to engage with Pakistan through diplomatic channels. • Core Requests: • Ensure access to adequate and independent medical care. • Make a humanitarian appeal for his release or relief based on human rights standards. • Sports Diplomacy: The proposal highlights Khan's legacy as the 1992 Cricket World Cup-winning captain, noting his role in fostering goodwill within the cricketing community and Sri Lanka. • National Stance: The motion calls for the Government to reflect the sentiments of the Sri Lankan public while reaffirming a commitment to democratic values and international goodwill.

Read more →

Maithree Wickremesinghe Summoned Over 2023 London Visit ⚖️

The Criminal Investigation Department (CID) has summoned former First Lady Professor Maithree Wickremesinghe to appear before the Financial Crimes Investigation Division (FCID) on February 20, 2026. • Case Allegations: The investigation focuses on the alleged misuse of approximately Rs. 16.9 million in public funds for a private visit to London in September 2023. The trip reportedly involved attending a graduation ceremony at the University of Wolverhampton. • Official vs. Private: While the trip was conducted during an official state tour (from Havana to the US), investigators allege that state resources—including airfare, security, and butler services costing £1,000 per day—were utilized for personal purposes. • Key Figures & Status: • Former President Ranil Wickremesinghe was previously arrested in August 2025 regarding these charges and maintains that no public funds were misused. • Former Presidential Secretary Saman Ekanayake, accused of approving the release of funds, was granted bail by the Colombo Fort Magistrate’s Court yesterday (February 18) after being in remand. • Next Steps: Professor Wickremesinghe’s statement is expected to clarify the approval process and funding sources for the delegation, which reportedly totaled ten individuals. Note: Based on ongoing court proceedings and provisional CID data.

Read more →

⚖️ MP Amarakeerthi Murder: High Court Sentences 12 to Death

The Gampaha High Court Trial-at-Bar has delivered a landmark ruling regarding the 2022 Nittambuwa violence, signaling a firm stance against mob justice and political violence. • Legal Verdict: 12 individuals found guilty of the murder of former MP Amarakeerthi Athukorala and his security officer were sentenced to death. • Additional Rulings: 4 individuals received six-month prison sentences (suspended for five years), while 23 accused were acquitted. • Context: The incident occurred on May 9, 2022, during nationwide unrest. The court's decision addresses the brutal killing of an elected official and a police officer amidst the Aragalaya protests. • Economic & Political Impact: The ruling underscores the importance of the rule of law for national stability. While the 2022 protests highlighted grievances over economic policies and organic fertilizer mandates, the court emphasized that "taking the law into one's own hands" remains a punishable offense regardless of political motivation. • Current Status: Following the conviction, some groups have called for a presidential pardon, though legal experts and party officials emphasize that accountability is essential to prevent future impunity.

Read more →

Product & Service Launches / Business Expansions

(143)

### Advantis and Sarens Form Strategic JV for Heavy Lift Logistics 📈

Hayleys Advantis Ltd has partnered with Belgium-based Sarens Group to establish a Joint Venture (JV) in Sri Lanka, significantly boosting the nation's transportation and logistics capabilities for large-scale infrastructure and renewable energy projects. Key Highlights of the Partnership: • Strategic Focus: The JV combines Advantis’ local operational expertise with Sarens' global heavy-lift engineering to provide end-to-end solutions for out-of-gauge and overweight cargo. • Primary Project: The collaboration’s first major task is the 50MW Haywind wind power development in Mannar—Sri Lanka’s largest private-sector wind investment to date. • Logistics Scope: Advantis and Sarens will manage the specialized transport and erection of wind turbine generators from the Port of Trincomalee to Mannar. Infrastructure & Economic Impact: • Investment in Assets: Advantis has invested in specialized multi-axle hydraulic trailers, blade adaptors, and tower transport trailers to handle complex inland routes. • Energy Transition: By enabling the Haywind project, the JV supports a landmark tariff of US$ 0.0465 per unit (approx. Rs. 14.37), setting a new benchmark for low-cost clean energy in Sri Lanka. • Regional Ambition: The alliance aims to serve as a hub for engineered lifting and project logistics across the wider South Asian region. _Source: Based on official corporate disclosures (February 2026)._

Read more →

Nestlé Golden Chef’s Hat Competition 2026 Launches to Boost Hospitality Talent 📈

Nestlé Professional, the B2B arm of Nestlé Lanka, has signed an MoU with the Chefs Guild of Lanka and the Sri Lanka Hospitality Graduates Association to launch the 2026 edition of the Nestlé Golden Chef’s Hat and Junior Golden Chef’s Hat competitions. • Competition Scope & Reach The islandwide initiative focuses on identifying and nurturing emerging culinary talent. The professional category will feature 8 regional competitions across Sri Lanka, providing a national platform for seasoned chefs to benchmark their skills against global standards. • Youth & Education Focus The Junior Competition targets students in the hospitality sector, with regional rounds held at prominent hotel schools. This aligns with the "Nestlé Needs YOUth" initiative, aiming to provide practical exposure and structured learning to bridge the gap between education and industry. • Sector Significance Hospitality & Tourism: Recognised as a critical driver for Sri Lanka's economic transition from stability to growth. Employment: The competition aims to upskill the next generation of chefs, enhancing the quality of the local workforce to meet evolving global demands in the foodservice ecosystem. Based on official launch data as of February 26, 2026.

Read more →

## NCE to Host Forum on Global Digital Reach 📈

The National Chamber of Exporters of Sri Lanka (NCE) has announced a high-level forum titled “Business Conversion and Global Reach through Social Media Platforms,” aimed at integrating digital strategy into the core of the export sector. • Event Details: Scheduled for 10 March 2026, 3.30 p.m. at Cinnamon Grand Colombo. Target audience includes CEOs, Directors, and Senior Marketing teams within the export and ICT/BPM sectors. • Strategic Focus: The forum addresses the shift from traditional advertising to digital conversion. Key pillars include mastering TikTok algorithms, optimizing Meta platforms, and utilizing "Hackvertising" to turn global engagement into measurable sales. • Economic Context: Emphasizes social media as a "necessity" for business transformation, allowing Sri Lankan brands to become more relatable and accessible to international buyers through real-time, back-and-forth communication. • Expert Panel: Features leadership from Meta, Daraz, and Roar AdX, moderated by Prof. Rohan Samarajiva. Discussion will focus on sustainable content workflows to reduce the cost of global customer acquisition.

Read more →

SriLankan Engineering Secures Long-term MRO Deal with Batik Air Malaysia 📈

• SriLankan Engineering (the MRO arm of the national carrier) signed a long-term Line Maintenance Agreement with Batik Air Malaysia to support all its upcoming flights to Colombo. • Under the agreement, SriLankan Airlines will provide comprehensive line maintenance and engineering services to ensure aircraft readiness and safety for the Malaysian carrier. • This partnership coincides with Batik Air Malaysia’s scheduled resumption of direct flights between Kuala Lumpur and Colombo, set for 30 March 2026, with 4 weekly frequencies using Boeing 737-800 aircraft. • The collaboration reinforces Sri Lanka’s position as a regional hub for aviation maintenance, repair, and overhaul (MRO) services, contributing to the country’s service-export revenue and technical reputation. • The deal marks another milestone for SriLankan Engineering, which recently secured similar long-term agreements with other regional players like Malaysia Airlines and Gulf Air, highlighting its competitive edge in the global MRO landscape.

Read more →

Emirates to Host Major Technical Recruitment Drive in Colombo ✈️

Emirates, the world’s largest international airline, has confirmed Sri Lanka as a key destination for its global search for skilled workshop technicians. The initiative is part of a broader goal to onboard 17,300 professionals globally this financial year. • Event Details: A recruitment roadshow and information session will be held in Colombo on 10 March 2026. Both experienced and aspiring technicians are invited to explore roles within Emirates Engineering. • Strategic Focus: The drive supports Emirates’ US$ 950 Mn investment in a next-generation engineering complex at Dubai World Central. This 1 million sq. m. facility is designed to support the airline's fleet and third-party maintenance requirements into the 2040s. • Economic Impact & Employment: The recruitment offers Sri Lankan technical talent access to the aviation & engineering sector in Dubai. Key highlights include: Tax-free salary and profit-sharing eligibility. Comprehensive benefits including medical, life insurance, and education allowances. Professional development within a technologically advanced GCAA CAR V approved facility. • Key Requirements: Interested candidates must register via the official Emirates Group careers portal. Roles involve maintenance and calibration of aircraft components for Emirates and third-party carriers.

Read more →

Shangri-La Hambantota Secures Halal-Friendly Certification to Boost Tourism 📈

• Shangri-La Hambantota has officially received Halal-Friendly Certification from Trace & Able (Pvt) Ltd, becoming a key player in inclusive hospitality by ensuring documented Halal dining protocols and cross-contact prevention. • The move targets the fast-growing global Muslim travel market, projected to reach 230 million arrivals and US$ 225 billion in annual expenditure by 2028. • The certification enhances the resort's appeal for destination weddings, corporate gatherings, and family-oriented travel from the Middle East, South Asia, and Southeast Asia. • Strategic Expansion: Shangri-La Colombo has formally expressed intent to pursue the same certification, aiming for operational consistency across the brand's Sri Lankan portfolio. • This milestone supports tourism diversification, catering to culturally sensitive and high-expenditure demographics without altering existing premium service standards.

Read more →

Plus94 Fund Expands Australia–Sri Lanka Capital Corridor with New Colombo Office 📈

• Strategic Expansion: Plus94 Fund has officially opened its new office at 36 Hyde Park Corner, Colombo, signaling a scaling up of its cross-border advisory operations between Sri Lanka and Australia. • New Mandates: The firm has commenced advisory engagements with ASX (Australian Securities Exchange) listed companies, focusing on capital markets, governance, and structured growth. • Economic Impact: This move strengthens the Australia–Sri Lanka investment pipeline, enhancing institutional credibility and providing specialized strategy for corporates navigating complex regulatory environments. • Key Focus Areas: • Capital Markets integrity. • Disciplined corporate governance. • Long-term value creation across jurisdictions. • Context: The launch was attended by prominent figures including Nimal Cooke, Chandra Schaffter, and Faiszer Musthapha, highlighting the firm's deep ties to Sri Lanka’s corporate leadership and financial sectors.

Read more →

SLT-Mobitel Catalyzes SME Digital Growth with ‘SmartChat Mega 2026’ 📈

SLT-Mobitel Enterprise successfully concluded ‘SmartChat Mega 2026’ at the BMICH on February 19, focusing on accelerating the digital transformation of the SME sector—the backbone of Sri Lanka’s economy. • Overall Impact & Reach The flagship event engaged 500 invited SME customers from the Western Province, providing hands-on experience with scalable, AI-driven business tools. • Sector Solutions & Hubs The initiative featured 12 dynamic solution hubs, including: • AI for Business: Workflow optimization and data-driven decision-making. • E-Commerce & SmartOps: Expanding market reach and streamlining internal operations. • CloudSuite & SmartSpace: Scalable cloud solutions and IoT-enabled office innovations. • Secure Biz: Dedicated focus on cybersecurity to safeguard digital assets. • Enterprise Mobility: Connectivity and mobility packages tailored for business growth. • Strategic Value Beyond technology, the event offered one-to-one consultations with SLT-Mobitel engineers, helping businesses identify tailored paths toward sustainable growth, enhanced productivity, and long-term competitiveness in a future-ready digital ecosystem.

Read more →

📈 Xiaomi Launches Redmi Note 15 Series in Sri Lanka

Xiaomi has officially expanded its mid-range smartphone portfolio in Sri Lanka, unveiling the Redmi Note 15 lineup designed with a focus on "Titan Durability" and high-end imaging. • Overall Series Highlights • All models run on Xiaomi HyperOS for enhanced system stability. • Features reinforced internal structures and high-strength display glass. • Integrated water and dust resistance across the entire lineup. • Sector Breakdown: Model Specifications • Redmi Note 15 Pro+ 5G: Flagship model featuring a 200MP main camera with OIS, Snapdragon 7s Gen 4 processor, and a 6,500mAh battery with 100W fast charging. • Redmi Note 15 5G: Slimmer profile with a 108MP camera, Snapdragon 6 Gen 3 chipset, and a 5,520mAh battery. • Redmi Note 15: Entry model focused on reliability with a 6,000mAh battery, MediaTek Helio G100-Ultra processor, and a 108MP camera. • Ecosystem Expansion • Introduced the Redmi Pad 2 (9,000mAh battery) and Redmi Pad 2 Pro 5G (12,000mAh battery) to target the ICT and productivity segments. • Market Availability • Now available through authorized Xiaomi stores and retail partners island-wide.

Read more →

New Release: Colombo’s Colonial History Through Global Eyes 📈

Ajay Kamalakaran’s latest book, _Colombo: Port of Call_ (Penguin India, 2026), is set for a public discussion on Sunday, 1 March 2026, from 10 a.m. to 12 p.m. at the Lakmahal Community Library. The work examines Sri Lanka’s historical role as a pivotal maritime crossroads during the 19th and 20th centuries. • Global Perspectives: The book reconstructs Colombo's "golden age" of steamships through the personal accounts of iconic visitors, including Mahatma Gandhi, Sir Arthur Conan Doyle, Don Bradman, Anton Chekhov, and Mark Twain. • Key Themes: It serves as a social document of the British Empire, recording racial hierarchies, imperialist impressions, and the era’s luxury hotels and high tea culture. It highlights Colombo's strategic importance as a refueling and supply port for routes to Japan, China, and Australia. • Economic Context: Beyond nostalgia, the text explores the city's history of inequality, specifically noting the hardships of Tamil workers in the tea plantations and the transition of the port from a colonial outpost to a global maritime hub. • Event Details: • Venue: Lakmahal Community Library, Colombo 03. • Format: Discussion between Ajay Kamalakaran and Uditha Devapriya, moderated by Hirun Matheesha. • Focus: Insights into the research and writing process of this 312-page non-fiction work.

Read more →

Batik Air Relaunches Colombo-Kuala Lumpur Flights 📈

• Aviation & Tourism: Batik Air (formerly Malindo Air) will resume direct operations between Colombo and Kuala Lumpur starting 30 March 2026. The carrier will operate four weekly services, positioning itself as a hybrid airline targeting leisure, business, and education segments. • Bilateral Growth: The move follows a strong upward trend in travel. Sri Lankan arrivals to Malaysia rose from 61,766 in 2024 to 77,022 in 2025, marking a 24.7% YoY increase. Officials aim for a further 10-15% growth in 2026 to coincide with 'Visit Malaysia Year.' • Economic Impact: Beyond passenger traffic, the service is expected to bolster export cargo movements and trade. The route provides Sri Lankan travelers enhanced connectivity to the wider Asia-Pacific region, including China and Australia, via the Kuala Lumpur hub. • Strategic Context: The Civil Aviation Authority noted the relaunch reflects growing airline confidence in Sri Lanka's recovery. This expansion supports national efforts in diversification of tourism markets and strengthening people-to-people ties between the two nations.

Read more →

Vidullanka Boosts Grid with 6MW Madampe Solar Plant ☀️

• Renewable Energy Expansion: Vidullanka PLC officially commissioned the 6MW Madampe solar plant on February 21, marking its largest fully-owned solar facility to date. • Capacity & Output: The plant utilizes 12,320 solar modules to export approximately 9.9 GWh of clean energy annually to the national grid. This is the fourth solar project commissioned by the company in the 2025/26 financial year. • Portfolio Growth: The solar segment now reaches a total capacity of 36 MW across 12 projects (7 ground-mounted and 5 rooftop). An additional 10MW solar project is currently under construction. • Future Pipeline: Vidullanka is diversifying into wind power (Alankuda and Mannar) and recently secured a 10MW Battery Energy Storage Solution (BESS) tender from the CEB. • Strategic Impact: With nearly 80MW in the pipeline, the company’s cumulative capacity is projected to hit 150MW. This aligns with Sri Lanka’s national targets for a sustainable energy mix and reduced reliance on fossil fuels.

Read more →

Real Estate

(27)

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)_

Read more →

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.

Read more →

📈 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. ---

Read more →

### 🏛️ 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._

Read more →

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.

Read more →

📈 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.

Read more →

📈 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.

Read more →

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

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

Read more →

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

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

Read more →

## Cabinet Approves Long-Term Leases for BOI Projects in Kerawalapitiya 📈

The Cabinet of Ministers has authorized 30-year leases for two major industrial and logistics ventures on reclaimed land in Kerawalapitiya, Wattala, aimed at boosting manufacturing and supply chain infrastructure. • Industrial Manufacturing Project: Powertech Products Ltd (backed by DHT Cement Ltd) will invest US$ 7 million to establish a factory for fibre cement roofing and flat sheets. The project targets both domestic and export markets. • Financials: One-time lease payment of Rs. 272.20 million plus an annual nominal rent of Rs. 83,500. • Logistics & Warehousing: MAS Freight Wave Terminal Ltd (a subsidiary of M.A.S. Consolidated Ltd) has been allocated land to develop a specialized warehouse supply complex. This supports the apparel & textiles and broader logistics sectors. • Financials: One-time lease payment of Rs. 305.99 million (payable in two installments) with an annual nominal rent of Rs. 90,000. • Strategic Context: The projects utilize a portion of the 400 acres of swampy land previously reclaimed by the Sri Lanka Land Development Corporation. These allocations represent a push toward high-value land use for BOI-approved private sector investments to drive economic growth and employment.

Read more →

### 🏠 Cabinet Approves US$ 158 Mn AIIB Funding for Colombo Housing

The Cabinet of Ministers has cleared the next phase of the Colombo Urban Regeneration Project, securing US$ 158 million in funding from the Asian Infrastructure Investment Bank (AIIB). The initiative, implemented by the Urban Development Authority (UDA), aims to replace low-facility settlements with modern vertical housing. • Overall Housing Impact A total of 4,074 housing units will be constructed to support low-income families currently residing in underserved areas of Colombo. • Sector & Regional Breakdown The project spans six key housing schemes within the Colombo municipality: Colombage Mawatha Stadium Gama Ferguson Apple Watte Madampitiya Obesekarapura • Beneficiary Contributions & Safeguards Capital Contribution: Each eligible household will contribute Rs. 350,000 towards the unit. Maintenance Fund: A deposit of Rs. 50,000 is required per family for long-term upkeep. Legal Support: The Government will fully bear deed registration and legal transfer costs. • Economic Context This urban renewal effort focuses on optimizing urban land use and improving the quality of life for the labor force within the construction and service sectors. By transitioning families to structured housing, the state aims to liberate high-value land for future commercial development. _Status: Based on Cabinet approval and official ministerial briefings._ ---

Read more →

Pitch Capital Unveils 'Dutch Empire' Tourism Project in Devundara 📈

• Project Overview: Pitch Capital Properties is set to launch ‘Dutch Empire’ on February 14, a heritage-inspired real estate and tourism development located near the Dondra Head Lighthouse in Sri Lanka’s southernmost tip. • Development Details: The project is a low-density, boutique coastal enclave featuring 16 exclusive villas and premium beachfront land plots. It integrates a contemporary architectural style inspired by the Dutch Ceylon period (1640–1796). • Investment & Pricing: • Villas: Starting from Rs. 65 Million. • Land Plots: Starting from Rs. 2.5 Million per perch. • The project targets high-end lifestyle investors, focusing on capital appreciation within the hospitality and construction sectors. • Key Features: • Direct beachfront access and a planned Dutch Museum within the precinct to boost "destination-driven value." • Architectural design by Design Consortium (Pvt) Ltd, focusing on tropical comfort and passive cooling. • Strategic positioning along the ancient maritime Silk Road, tapping into the growth of the southern coastal tourism belt. • Economic Impact: Aligned with Sri Lanka’s broader hospitality growth, the project emphasizes low-rise, environmentally responsive development to ensure long-term investment resilience and employment in the construction and services sectors.

Read more →

Awards & Recognitions

(46)

🏆 CEO of the Year 2025 Awards Tonight in Colombo 📈

The prestigious CEO of the Year 2025 Awards Ceremony will take place this evening, February 26, at the Cinnamon Grand Colombo. Organized by the Global CEO Forum, the event serves as a premier national platform to honor corporate leaders driving Sri Lanka’s economic stability. • Event Focus: Recognizing leadership excellence, strategic innovation, and resilience across various sectors. • Evaluation Criteria: Winners are selected through a rigorous process assessing organisational performance, governance standards, and industry impact. • Key Participants: Attendees include senior government Ministers, diplomats, and high-level corporate executives. • Economic Context: The ceremony emphasizes the role of the private sector in fostering global competitiveness and sustainable development for Sri Lanka. Strategic Highlights: • Focuses on ethical governance and innovation as core drivers of national progress. • Encourages public-private sector engagement to strengthen the country's economic resilience. _Note: Award winners will be announced during the gala ceremony._

Read more →

## Metropolitan Technologies Wins Special Category at 'The Great HR Quiz 2026' 📈

The Human Resources team of Metropolitan Technologies secured the Special Category Award at the 2026 edition of ‘The Great HR Quiz’, organized by the Chartered Institute of Personnel Management (CIPM) Sri Lanka. • Event Overview: The annual competition, held on 28 January 2026, featured over 70 leading organizations from across the island. It serves as a premier knowledge-sharing platform for HR professionals to promote excellence in people management and strategic alignment. • Sector Impact: As a key player in Sri Lanka’s ICT and technology solutions sector—holding a significant market share in hardware—Metropolitan’s win underscores the importance of a "future-ready" workforce in driving business performance. • Key Competition Results: • Overall Champion: International Distillers Ltd (IDL) • 1st Runner-Up: InQube Global (Pvt) Ltd • 2nd Runner-Up: DFCC Bank PLC • Sector Winner (Finance/Insurance): Janashakthi Group (JXG) • Strategic Significance: The 2026 quiz featured a revitalized format focusing on real-life HR scenarios and decision-making. The achievement reflects Metropolitan's commitment to high standards in human resource management, essential for sustaining its leadership in the local technology landscape. _Note: Results are based on the latest industry data from the CIPM 2026 event cycle._

Read more →

SLIM Effie Awards 2025 Grand Finale Set for March 3 📈

The Sri Lanka Institute of Marketing (SLIM) will host the Grand Finale of the SLIM Effie Awards 2025, celebrating the country’s most impactful marketing and advertising campaigns. • Event Details: Scheduled for March 3, 2026, at Monarch Imperial, Thalawathugoda, starting at 5:30 p.m. • Core Focus: Recognition of campaigns that demonstrate strategic insight, creative excellence, and measurable business results within the marketing and advertising sector. • Industry Significance: The SLIM Effie Awards serve as a global benchmark for marketing effectiveness, aimed at elevating industry standards and positioning Sri Lankan marketers on a global platform. • Participation: The event will convene key stakeholders, including leading brands, advertising agencies, and media partners, highlighting the resilience and innovation of the local marketing community. Based on official event announcement data. 🇱🇰

Read more →

Finalists Announced for CFA Institute Research Challenge Sri Lanka 2025/26 📈

The CFA Society Sri Lanka has revealed the top four university teams qualifying for the local finals of the prestigious global equity research competition. • Finalist Teams: - University of Kelaniya - SAB Campus CA Sri Lanka - University of Sri Jayewardenepura - University of Colombo • Key Details: - Subject Company: Digital Mobility Solutions Lanka Ltd. (PickMe) - Local Finals: Scheduled for 27 February 2026 at the HNB Auditorium, Colombo. - Objective: Teams will present equity research, financial modeling, and investment recommendations to a panel of investment community experts. • Strategic Impact: - Supported by the Colombo Stock Exchange (CSE) as Platinum Partner and HNB PLC as Banking Partner. - Focuses on strengthening capital market knowledge, analytical thinking, and ethical standards among the next generation of finance professionals. - The local winner will advance to the sub-regional competition, aiming for the Global Final in Hong Kong. • Sector Significance: - Vital for developing skilled human capital in financial services and equity research, essential for the long-term resilience of Sri Lanka’s financial ecosystem.

Read more →

Sri Lankan Scientist Wins Global 2026 OWSD-Elsevier Energy Award 📈

• Duleeka Sandamali Gunarathne from Sri Lanka has been named one of five winners of the 2026 OWSD-Elsevier Foundation Award for Early-Career Women Scientists in the Developing World. • The award recognizes her visionary leadership and research in Engineering Sciences, specifically focusing on advancing UN Sustainable Development Goal (SDG) 7: ensuring access to affordable, reliable, and sustainable energy. • Key Highlights: • Recognized for "transforming communities" through innovations in the sustainable energy sector. • One of only five global recipients selected from the Global South (alongside winners from Guatemala, Syria, Kenya, and Togo). • The award includes a cash prize of US$ 5,000 and a travel grant for an international conference to support professional growth. • Economic Impact: • Since 2013, this program has recognized 84 scientists across 38 countries, positioning winners as key role models for ICT/BPM and Engineering leadership. • Gunarathne’s achievement highlights Sri Lanka’s growing intellectual capital in renewable energy and sustainable technology, vital for long-term national energy security and professional services exports. • Awarded by the Organization for Women in Science for the Developing World (OWSD) and the Elsevier Foundation ahead of International Women’s Day.

Read more →

### Ven. Dr. Kirinde Assaji Honored with Lifetime Achievement Award in India 📈

• Event: Gangaramaya Temple Chief Incumbent Ven. Dr. Kirinde Assaji has been conferred the Lifetime Achievement Award by KITT University, India. This marks the first time a Sri Lankan has received this prestigious honor. • Significance: The award recognizes exceptional contributions to Buddhist scholarship, spiritual leadership, and the strengthening of Sri Lanka–India cultural relations. Previous recipients include eminent figures such as former Indian President Pranab Mukherjee. • Bilateral Impact: • Highlights the role of religious diplomacy in enhancing regional harmony and mutual cooperation. • Commemorates milestones such as the 2017 State Vesak Ceremony attended by PM Narendra Modi and the historic exposition of Indian Buddhist Relics at Gangaramaya. • Reinforces academic ties, as Ven. Dr. Assaji is an alumnus of the University of Delhi (MA and PhD). • Context: This recognition underscores the strategic importance of cultural and religious ties in the broader Sri Lanka–India partnership, fostering long-term bilateral stability and mutual respect. ---

Read more →

SLASSCOM Launches 2026 National Ingenuity Awards to Drive $5B Innovation Goal 📈

The Sri Lanka Association for Software and Services Companies (SLASSCOM) has officially opened applications for the 8th edition of the SLASSCOM National Ingenuity Awards (SNIA) 2026. The initiative aligns with the national target of building a US$ 5.00 Bn knowledge and innovation economy by 2030. • Core Objective: To transition Sri Lanka from service delivery toward high-value, product-driven growth and global intellectual property (IP) ownership. • Key Sectors: Awards cover Fintech, Agritech, Healthtech, Edutech, Manufacturing, Logistics, and Retail. • Eligibility: Open to Sri Lankan corporates, ICT/BPM startups (est. after Jan 2022), university undergraduates, and school students (Grade 9+). • Special Categories: Includes Woman Technopreneur of the Year, Tech-for-Good, and Innovation in RPA (Robotic Process Automation). • Timeline: Applications are open until 15 March 2026 via the official portal. The awards aim to improve Sri Lanka's Innovation Index by recognizing scalable, homegrown solutions with significant economic and societal impact. 🇱🇰

Read more →

Sri Lanka’s Mirissa and Bentota Ranked Among Asia’s Top 10 Beaches 📈

Sri Lanka’s tourism sector receives a significant global boost as two coastal destinations are recognized in the 2026 Tripadvisor Travelers’ Choice Awards "Best of the Best" list. • Key Rankings: Mirissa Beach secured the 5th position in Asia, while Bentota Beach followed at 7th. Both destinations are among the top 1% of over eight million global listings based on traveler reviews over a 12-month period. • Sector Highlights: • Mirissa Beach: Recognized for its appeal to both relaxation and adventure tourism, featuring calm swimming areas, the "Mirissa Right" surfing break, and the iconic Coconut Tree Hill. • Bentota Beach: Noted for its strength in the water sports niche, specifically jet skiing and kitesurfing, complemented by its soft white sands and sunset views. • Regional Context: Sri Lanka is the only country alongside India and Thailand to have multiple entries in Asia’s Top 10. The top spot was claimed by Banana Beach in Phuket, Thailand. • Economic Impact: These accolades reinforce Sri Lanka's position as a premier leisure destination, critical for driving foreign exchange earnings and supporting local employment in the hospitality and food & beverage industries. _Data based on 2026 Tripadvisor Travelers’ Choice Awards._

Read more →

### Radisson Hotels Sri Lanka Sweeps MMT Awards 📈

Radisson Blu Resort Galle, Radisson Hotel Kandy, and Radisson Hotel Colombo have been honored with prestigious awards from MakeMyTrip (MMT). The recognition highlights excellence in service quality, traveler trust, and guest satisfaction across the group's Sri Lankan portfolio. Performance Highlights The awards follow a period of exceptional commercial growth for the properties, all operating under Sino Lanka Hotels Holdings Ltd: • Radisson Blu Resort Galle: Achieved a massive 300% production growth. • Radisson Hotel Kandy: Delivered 200% production growth. • Radisson Hotel Colombo: Recorded 175% production growth. Sector Impact The growth underscores the rising demand for hospitality and tourism in Sri Lanka, particularly through international online travel platforms. By maintaining global standards, these hotels contribute significantly to the country's brand credibility and regional competitiveness. Strategic Focus The group continues to prioritize: • Sustainable growth and international service benchmarks. • Diversified experiences across oceanfront, hill-country, and urban settings. • Strengthening Sri Lanka’s profile as a preferred destination for global travelers.

Read more →

📈 People’s Bank Crowns ‘BizTeen’ 2025 Winners & Launches Youth Banking

People's Bank, in partnership with the Industrial Development Board (IDB), concluded the ‘BizTeen’ Entrepreneurship Challenge 2025, aimed at fostering entrepreneurial thinking and SME development among school students nationwide. • Competition Highlights: • Organized under the National School Industry Entrepreneurship Circles Programme involving the Ministries of Industry and Education. • Evaluated via business proposals and national-level presentations. • 13 national winners selected for innovation and business potential. • Top Award Recipients: • 1st Place: W.K. Vinuka Yasith (Urubokka National School) – LKR 250,000. • 2nd Place: Dasini Sanupama Karunathilaka (Anuradhapura Central College) – LKR 150,000. • 3rd Place: K.D. Nethmi Prarthana Dissanayaka (Thalawa Maha Vidyalaya) – LKR 100,000. • Merit: 10 students received LKR 25,000 each to support their concepts. • New Financial Product: • Launch of 'People’s YES TEEN', a dedicated banking solution for ages 13–18. • Features a branded debit card with a LKR 20,000 daily transaction limit. • Focuses on financial literacy and discipline by balancing parental oversight with digital banking independence. • Strategic Impact: This initiative strengthens the human capital pipeline for Sri Lanka’s future startup ecosystem and encourages financial inclusion from an early age.

Read more →

IDL Crowned Champions at CIPM Great HR Quiz 2026 📈

International Distillers Ltd. (IDL) emerged as the overall winner of the 2026 Great HR Quiz organized by the Chartered Institute of Personnel Management (CIPM) Sri Lanka. In its debut appearance, IDL outperformed 74 other teams from various industries, securing both the Overall Championship and the sector award for Food, Beverage, and Distilleries. The 2026 competition featured a revamped format focusing on strategic thinking, decision-making, and problem-solving across the employee life cycle rather than simple knowledge-based queries. The winning IDL team included Hansanie Illangakoon, Chaminda de Seram, Prasad Gunathilaka, and Ashan Maraweerahewa. IDL, established in 1980, is currently Sri Lanka’s largest locally manufactured foreign liquor producer, with a growing export footprint in Europe, Australia, Japan, and North America. This victory highlights the sector's shift toward world-class people management and strategic HR as key drivers of competitive advantage in the local manufacturing landscape.

Read more →

📈 CISD Achieves Global UK "Investor in Sales" Accreditation

The Colombo Institute of Sales and Distribution (CISD) has secured the Investor in Sales – Bronze Accreditation from the UK-based Institute of Sales Professionals (ISP). This milestone marks CISD as one of the few regional institutions to meet rigorous international benchmarks for structured, high-performance sales systems and leadership. • Accreditation Details Status: Bronze Accreditation (International Benchmark). Validity: 9 January 2026 to 8 January 2028. Scope: Evaluates leadership, people development, and professional sales processes. • Impact on Sri Lanka’s Economy Professionalization: Transitions sales from an informal occupation into a respected career pathway, similar to finance or IT. Sector Support: Enhances talent quality across FMCG, Banking, Tech, and Logistics—sectors critical for national growth. Regional Hub: Positions Sri Lanka as a center for professional sales excellence and commercial leadership. • Key Institutional Role Focus: Sri Lanka's first higher education entity dedicated exclusively to sales and distribution. Mission: Bridging the gap between academic theory and industry practice through globally benchmarked programs. _Summary based on official announcement (Feb 18, 2026)._

Read more →

Corporate News

(61)

Gapstars Group Launches Scale Up 2026 Marking 10 Years of Tech & Finance Growth 📈

• Scale Up 2026 Summit: The 10th-anniversary event in Colombo brought together over 50 global partners, including leading European technology and finance organizations, to focus on AI workshops and agile collaboration. • Strategic Expansion: Formally launched the Gapstars Group, integrating its established technology vertical with a newly expanded finance capability. This embeds Sri Lankan professionals into European firms for reporting, compliance, and forecasting. • Sector Impact: • ICT/BPM: The event transitioned from proving the distributed engineering model to scaling it, highlighting Sri Lanka’s technical depth and communication maturity. • Finance & Accounting: Formalized a vertical where Sri Lankan teams operate at the "heart" of international partner organizations rather than as simple support functions. • Key Recognition: UK-based brand Brompton was named Partner of the Year, emphasizing the high level of ownership and architectural contribution provided by its Sri Lankan engineering team. • Economic Outlook: The milestone marks a shift toward deeper AI integration and high-performance global collaboration, positioning Sri Lanka as a strategic hub for permanent hybrid work models and international enterprise systems.

Read more →

Record Performance and Strategic Expansion: DFCC Bank Delivers Landmark 2025 📈

DFCC Bank reported record-breaking financial results for the year ended 31 December 2025, driven by aggressive loan growth and a transformative acquisition. • Profitability & Growth • Bank Profit After Tax (PAT) reached LKR 16 Bn (including a gain from the disposal of Acuity Partners). • Group PAT from continuing operations rose 32% YoY to LKR 11.23 Bn. • Total Assets grew by 22% to LKR 857 Bn, while the loan portfolio surged 31% to LKR 516 Bn. • Strategic Milestones • Signed a binding agreement to acquire the Wealth and Retail Banking operations of Standard Chartered Bank Sri Lanka for LKR 3.7 Bn, significantly scaling its retail franchise. • Issued Sri Lanka’s first listed Blue Bond (LKR 3 Bn), which was oversubscribed, targeting sustainable marine and water-related projects. • Sector & Operational Highlights • Net Fee and Commission Income jumped 48% to LKR 7.3 Bn, fueled by remittances, trade, and credit cards. • Asset quality improved with the Stage 3 impaired loan ratio dropping to 4.55% (from 5.63%). • Strong liquidity maintained with a Total Capital Adequacy Ratio of 15.93% and a 20% growth in the CASA portfolio. • Shareholder Returns • Final dividend of LKR 7.50 per share approved (LKR 2.50 cash and LKR 5.00 scrip), representing a 32% payout ratio.

Read more →

Amana Takaful Life’s Gold Fund Surges 32.4% in 2025 📈

Amana Takaful Life PLC announced exceptional 2025 performance for its unit-linked investment funds, led by its unique gold-backed offering amid market volatility. • Overall Fund Performance: The flagship Gold Investment Fund (GIF) recorded a standout 32.4% annual return. Amana Takaful Life remains Sri Lanka's only life insurer providing a dedicated fund for gold-backed investments, combining wealth growth with life protection. • Sector & Fund Breakdown: Equity-linked options also showed strong momentum, supporting national financial inclusion through diverse risk-profile products: Growth Multiple Fund (GMF): 23.5% return. Volatile Multiple Fund (VMF): 23.6% return. Stable & Protected Funds: Continued to provide steady, low-risk growth for conservative policyholders. • Strategic Flexibility: Policyholders benefited from the ability to switch between funds as market outlooks changed, enhancing personal wealth management. CEO Gehan Rajapaksha noted the results reflect a customer-centric design that prioritizes long-term value in a dynamic economic environment. • Industry Context: The performance highlights the rising demand for alternative asset classes like gold as a hedge against inflation and economic shifts.

Read more →

## 📈 Commercial Bank Signals Stability Through Prudent Risk Philosophy

Commercial Bank of Ceylon PLC has reaffirmed its commitment to a conservative yet adaptive risk management framework, positioning it as a cornerstone for long-term resilience amid economic volatility. • Core Strategy The bank operates on a "prudent risk profile," which emphasizes disciplined underwriting and forward-looking assessments rather than risk avoidance. This approach integrates risk management into active decision-making rather than treating it as a back-end function. • Credit Risk & Asset Quality • Credit Risk Management: Central to stability, the bank uses a "Michelin-starred" approach—blending quantitative science with qualitative judgment. • Early Warning Signals: Employs predictive analytics to detect borrower stress early, preventing a rise in non-performing exposures. • Portfolio Growth: Achieved growth exceeding industry averages while simultaneously improving asset quality through transparent, objective underwriting. • Modernization & Innovation • Data-Driven Lending: Leverages advanced analytics and internal risk models while maintaining "Human in the Loop" governance. • Stress Testing: Regular assessments of interest rates, exchange rates, and GDP fluctuations inform strategic capital allocation. • Cybersecurity: Proactively strengthens data governance and incident-response protocols to match the rapid digitalization of banking services. • Sustainability & Ethics The bank has embedded Environmental, Social, and Governance (ESG) factors and conduct risk frameworks into its operations, treating ethical integrity as a fundamental obligation to maintain stakeholder trust.

Read more →

📈 Capital Alliance PLC Upgraded to ‘A+’ for Financial Resilience

Lanka Rating Agency (LRA) has upgraded the Entity Rating of Capital Alliance PLC (CALT) to ‘A+’ from ‘A’ with a Stable Outlook. The upgrade underscores the company’s dominant position as a leading non-bank Primary Dealer and its consistent profitability within Sri Lanka's capital markets. • Financial Performance & Capital • Total equity reached approximately LKR 15.0 Bn as of 30 September 2025. • Sustained profit growth recorded across FY2024, FY2025, and H1 FY2026. • Capital Adequacy Ratio remains comfortably above regulatory thresholds, ensuring strong buffers against market volatility. • Market Leadership & Strategy • Recognized as one of Sri Lanka’s largest non-bank Primary Dealers in government securities. • Strength derived from its established franchise and strategic backing by Capital Alliance Holdings PLC. • Business stability supported by diversification and disciplined risk management in a stabilizing interest rate environment. • Strategic Outlook • The 'Stable' outlook reflects expectations of maintained market leadership and capital discipline. • Focus remains on treasury operations and supporting the broader financial system through resilient balance sheet architecture.

Read more →

NTB Records Strong 2025 Performance: PAT Up 15% to Rs. 19.3 Bn 📈

Nations Trust Bank PLC (NTB) reported robust financial results for the year ending 31 December 2025, driven by aggressive credit expansion and stable margins. • Overall Financials: • Profit After Tax (PAT): Rs. 19.3 Bn (up 15% YoY). • Earnings Per Share (EPS): Increased to Rs. 57.76 from Rs. 50.39. • Return on Equity (ROE): 21.86%. • Banking Operations & Growth: • Loan Book: Recorded a significant 50% growth, supporting SMEs, corporates, and consumer sectors. • Net Interest Margin (NIM): Maintained at 6.05% through efficient asset-liability management. • Asset Quality: Net Stage 3 Ratio held at a healthy 0.91%, reflecting disciplined risk management. • Strategic Expansion: • Acquisition: Received CBSL approval to acquire HSBC Sri Lanka’s retail operations, set to conclude in Q2 2026. • Impact: Will integrate ~200,000 accounts, strengthening NTB's position in the premium retail and credit cards segments. • Capital & Liquidity: • Tier 1 Capital Ratio: 19.61% (Regulatory req: 8.5%). • Total Capital Adequacy: 20.72% (Regulatory req: 12.5%). The bank remains a leader in the digital banking and premium card markets as the sole acquirer for American Express in Sri Lanka.

Read more →

📈 MAS Holdings Pivots Methliya Plant to Fabric Manufacturing

MAS Holdings has announced a strategic restructuring at its Thulhiriya facility to counter a prolonged contraction in global demand for apparel & textiles. • Core Operation Shift: Garment manufacturing will cease at the Methliya plant, which will be repurposed for upstream textile production, specifically knitting, dyeing, and finishing. This leverages existing wet-processing infrastructure within the MAS Fabric Park. • Global Market Context: The decision follows sustained weakness in key export markets (US, EU, and UK) driven by inflation, economic slowdowns, and shifting trade policies. This aligns with MAS's global rationalization, including recent exits from Haiti and the Dominican Republic. • Workforce Impact: • Approximately 2,200 employees are affected. • Staff have been offered transfers to other local facilities or operations in Jordan with a three-month relocation incentive. • Those opting out will receive compensation exceeding statutory requirements, including full dues and wages through April 2026. • Operational Stability: Existing garment production capacity will be redistributed across other MAS apparel plants in Sri Lanka. All other MAS facilities currently remain unaffected. _Source: Based on provisional company announcement dated Feb 19, 2026._

Read more →

📈 Melstacorp Divests 0.04% Stake in DCSL for Rs. 119 Million

• Transaction Details: Melstacorp PLC sold 2 million shares of Distilleries Company of Sri Lanka PLC (DCSL) on February 19. The divestment was executed at a price of Rs. 59.50 per share, totaling a cash inflow of Rs. 119 million. • Ownership Impact: Melstacorp’s controlling interest in DCSL saw a marginal reduction, moving from 92.44% to 92.40%. The group retains a dominant position with over 4 billion shares remaining in the subsidiary. • Market Movement: Following the announcement, DCSL shares closed at Rs. 59 (down Rs. 0.30), while Melstacorp PLC shares ended at Rs. 181.25 (down Rs. 1.75). • Asset Position: As of December 2025, Melstacorp reported net assets of Rs. 131.99 per share, compared to DCSL’s net asset value of Rs. 4.14 per share.

Read more →

Sampath Group Surpasses Rs 2 Tn Asset Milestone in 2025 📈

The Sampath Group achieved record-breaking financial results for the year ended 31st December 2025, driven by aggressive loan book expansion and strategic asset reallocation. • Overall Financial Performance • Group PAT: Rs 32.6 Bn (↑ 13% YoY) • Group PBT: Rs 53.0 Bn (↑ 8% YoY) • Total Asset Base: Surpassed Rs 2.0 Tn (↑ 12% YoY) • Dividend: Recommended final cash dividend of Rs 10.30 per share. • Bank Highlights & Lending • Gross Loans: Reached Rs 1.2 Tn, expanding by Rs 259 Bn (↑ 27% YoY). • Net Fee Income: Rs 21.2 Bn (↑ 21% YoY), fueled by higher card usage and economic activity. • Asset Quality: Stage 3 loans improved significantly to 9.6% from 13.7% in 2024. • Capital Adequacy: Total Capital Ratio stood at 17.65%, well above regulatory norms. • Strategic Shifts & Operations • Interest Income: Totaled Rs 181.1 Bn (↓ 1% YoY) as the bank shifted focus from government securities to high-growth lending in the SME and corporate sectors. • Profitability (ROE): Improved to 17.93% (2024: 17.74%). • New Initiatives: Established a new wealth management company in early 2026 and launched the country’s first Green Fixed Deposit framework.

Read more →

High Court Acquits Former FCCISL Secretary General in Breach of Trust Case ⚖️

• Legal Outcome: The High Court of Colombo has acquitted Samantha Abeywickrama, former Secretary General of the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), of all criminal charges. • Case Background: The proceedings, filed under the Penal Code, involved allegations of misappropriating approximately Rs. 2.46 million in funds allocated for an ADB workshop in Bangkok back in 2007. • Court Ruling: • The prosecution failed to prove "criminal breach of trust" or "dishonest misappropriation." • No evidence was found regarding fraudulent intent or personal conversion of funds. • The judge emphasized that criminal liability requires proof beyond reasonable doubt, which was not met in this instance. • Significance: This acquittal concludes a legal battle spanning nearly two decades. Abeywickrama, who also served as CEO of the FCCISL, maintained that all financial actions followed institutional approvals and audit processes. This decision restores his legal standing within the private sector and chamber community. _Note: Based on High Court judgment delivered February 2026._

Read more →

Renuka Holdings Streamlines Operations via Subsidiary Amalgamation 📈

Renuka Holdings PLC has announced a strategic internal restructuring to consolidate its agribusiness operations. The move involves the merger of two key entities within its extensive group portfolio. • Amalgamation Details: Renuka Enterprises Ltd will absorb its own subsidiary, Renuka Agro Exports Ltd. The Boards of both companies approved the resolution on 12 February, with the amalgamation set to officially take effect on 20 March 2026. • Sector Impact: The consolidation focuses on the Agri Food Exports sector. Renuka Agro Exports is a pioneer in value-added coconut products and ethnic foods (spices and ready-to-eat mixes), playing a significant role in Sri Lanka’s export economy and rural outgrower networks. • Market Performance: Following the announcement, Renuka Holdings (RHL.N0000) saw its share price rise by Rs. 0.50, closing at Rs. 43.50. • Financial Position: As of 31 December 2025, the Group reported: • Total Assets: Rs. 23.88 Bn (based on provisional data). • Net Assets per Share: Rs. 57.26. The restructuring is expected to enhance operational efficiency within the group’s manufacturing and global marketing arms. _

Read more →

📈 HVA Foods Parent Divests 18% Stake for Rs. 189.7M

George Steuart & Co., the majority shareholder of HVA Foods PLC, has divested a significant portion of its holding in the company, known for the global Heladiv tea brand. • Transaction Details: A total of 44 million shares (17.99% stake) were sold in the market for Rs. 189.7 million. The trades occurred in four tranches at prices ranging between Rs. 4.30 and Rs. 4.60 per share. • Shareholder Structure: As of December 2025, George Steuart & Co. held a 72.39% stake. Post-divestment, its majority remains, followed by HVA Lanka Exports Ltd. at 4.75%. • Market & Financial Position: • The share price gained 20 cents on Wednesday, closing at Rs. 4.40. • Based on provisional data, the company reported net liabilities of 26 cents per share. • Sector Context: HVA Foods is a key player in the tea and value-added beverages sector, specializing in Ceylon tea exports and innovative products like ready-to-drink infusions. This divestment follows a trend of restructuring within large conglomerates involved in Sri Lanka's agriculture & exports landscape.

Read more →

Industry & Sector News

(79)

Luxury Brands Debuts DIAGEO ‘World Class’ in Sri Lanka 🍸

Luxury Brands Ltd. has officially introduced World Class by DIAGEO, the world’s most prestigious bartending competition, to Sri Lanka for the first time. This landmark initiative aims to align the local hospitality sector with global standards and support the national tourism agenda. • National Winner: Akash Rajapaksha from Cinnamon Lakeside Colombar was crowned the first-ever Sri Lankan champion. He will represent the island at the regional finals in India against champions from India and Nepal. • Competition Scale: Over 100 bartenders from leading bars and lounges nationwide participated in the Master Class, with the Top 10 advancing to the national finals. • Economic Impact: The program focuses on high-level skills development in service and hospitality, enhancing destination competitiveness and promoting responsible service within the tourism industry. • Sector Growth: By introducing international benchmarking and mentorship, the initiative seeks to elevate the "cocktail culture" as a professional art form, potentially boosting the country's appeal as a premium travel destination. _Source: Based on reported event data, February 2026._

Read more →

### 📈 Sri Lanka Gamma Centre Aims for Self-Sustainability

The Ministry of Science and Technology has initiated a strategic plan to strengthen the Sri Lanka Gamma Centre, focusing on operational independence and national economic contribution. • Strategic Objective: Transitioning the facility toward full self-sustainability by expanding existing technical capabilities and service reach. • Operational Focus: Enhancing service quality and customer satisfaction standards to better serve the industrial and healthcare sectors. • Economic Impact: The move is designed to support national development goals, particularly in sectors requiring high-standard sterilization and irradiation services such as healthcare, export agriculture, and food preservation. • Current Status: Based on initial reports from the Ministry; specific financial targets or investment figures remain provisional.

Read more →

Sri Lanka Insurance Sector Performance: Q1–Q3 2025 📈

The Insurance Regulatory Commission of Sri Lanka reports robust growth and resilience across the industry as of September 30, 2025, driven by a surge in premiums and asset expansion. • Overall Figures Total Gross Written Premium (GWP) reached Rs. 283.61 Bn, a 19.48% YoY increase. Total Industry Assets grew by 15.97% to Rs. 1.35 Tn. Profit Before Tax (PBT) rose to Rs. 37.38 Bn (+6.6% YoY). • Sector Breakdowns Long-Term Insurance: Remained the dominant driver with GWP of Rs. 164.06 Bn (+25.06% YoY). Assets in this segment grew 17.54% to exceed Rs. 1 Tn. General Insurance: Recorded GWP of Rs. 119.55 Bn (+12.58% YoY). While its PBT surged by 26.2%, the long-term segment saw a slight PBT dip of 6.46%. Insurance Brokers: Showed exceptional growth with total assets rising 32.32% to Rs. 19.55 Bn. • Key Market Highlights Motor Insurance: Regained its lead in the general segment, accounting for 47% of premiums with a 20.15% growth rate. Marine & Trade: Strong performance in marine (+13.09%) and SRCC (+15.70%) reflects increased trade and risk protection needs. Government Securities: Total industry investment in state debt rose 13.47% to Rs. 672.20 Bn. • Claims & Stability Total claims incurred rose 15.75% to Rs. 126.13 Bn, primarily due to a 27.38% spike in long-term insurance benefits (maturities and death benefits).

Read more →

## IRCSL Launches Sri Lanka’s First Centralized Insurance Data Repository 📈

The Insurance Regulatory Commission of Sri Lanka (IRCSL), in collaboration with the Credit Information Bureau (CRIB), has officially unveiled a first-of-its-kind national Centralized Insurance Data Repository. This digital transformation marks a shift from fragmented, siloed data to a unified, secure national ecosystem. • Phased Implementation: The platform begins with the integration of motor insurance data, with plans to expand into health and life insurance sectors later. • Industry Impact: • Risk Assessment: Enables accurate, customer-specific risk profiling for fairer, more consistent pricing across the industry. • Fraud Prevention: Provides real-time access to claims data to identify multiple claims for single incidents across different insurers. • Market Penetration: Data-driven insights will help identify underserved segments, aiming to increase overall insurance penetration and financial inclusion. • Customer Benefits: Supports digital identity verification, faster policy issuance, and more efficient claims processing by reducing manual documentation. • Technological Foundation: Managed by CRIB, the repository is built to support advanced analytics and future AI-driven solutions to modernize the financial services landscape.

Read more →

📈 Tourist Arrivals Surpass 500,000 in Early 2026

Sri Lanka's tourism sector has crossed a significant milestone, recording over half a million arrivals within the first 53 days of the year, driven by peak season demand and major international events. • Overall Performance Total arrivals from January 1 to February 22 reached 505,751. The period from February 1 to 22 alone saw 228,424 visitors, maintaining a robust daily average and showing strong momentum compared to the 277,327 arrivals recorded in the full month of January. • Weekly Momentum The first three weeks of February consistently outperformed expectations, with each week exceeding 70,000 arrivals: Week 1: 70,355 Week 2: 77,870 Week 3: 71,101 • Top Source Markets (Feb 1–22) India: 16% (37,216 visitors) United Kingdom: 11% (25,867 visitors) • Key Growth Driver The hosting of the ICC Men's T20 World Cup matches in Sri Lanka has been a primary catalyst for the February surge. This "sports tourism" boost has significantly increased inflows from cricket-playing nations, aiding the country's broader economic recovery and employment in the hospitality and transportation sectors.

Read more →

Bankers Redefine Risk Standards Following 2022 Crisis 📈

Sri Lanka’s leading bankers have confirmed a permanent shift in risk management, moving away from sovereign-heavy exposure toward private-sector lending and rigorous cash-flow analysis. • Strategic Reset Banking leaders describe the post-2022 era as a "structural reset." Institutions are reducing concentration in government-linked assets; People's Bank noted its loan book previously had 60% exposure to State-Owned Enterprises (SOEs). Shift from "collateral-heavy" lending to prioritizing borrower cash flow and "real-time" liquidity. • Risk & Liquidity Lessons A key focus is now on asset-liability currency alignment to prevent mismatches between rupee liquidity and US$ obligations. Operational risks, including business continuity during power and fuel shortages, are now Board-level priorities. • AML & Compliance Focus The industry is bracing for the third AML/CFT mutual evaluation; failure is cited as "not an option" for global funding access. Banks are integrating AI for transaction monitoring and upgrading Know-Your-Customer (KYC) and Ultimate Beneficial Ownership (UBO) frameworks. Compliance has shifted from a technical function to a monthly Board-level deliberation. • Sector Outlook State banks and private lenders like HNB and DFCC are strengthening capital buffers. System-wide improvement reported in capital adequacy and profitability following the 2022 "stress event."

Read more →

## 📉 Rethinking Productivity: Sri Lanka’s Meeting Culture Crisis

A recent analysis highlights a hidden drain on the Sri Lankan economy: unproductive meetings. As the nation navigates its ongoing economic recovery, addressing inefficiencies in both the public and private sectors is becoming a critical factor for national productivity. • The Productivity Gap Global research indicates that up to 83% of meetings are considered unproductive by managers. Long, unstructured sessions—often exceeding 140 minutes—lead to significant "opportunity costs" in terms of time and money. Excessive meetings are cited as a primary "productivity killer," increasing stress and reducing employee autonomy. • Key Economic Indicators of Inefficiency Time Cost: Every hour spent in a meeting by several staff members represents multiple paid work hours without direct output. Space Utilization: Inefficient booking of meeting rooms leads to wasted organizational resources. Focus Time: Lack of uninterrupted blocks for "deep work" hinders the completion of technical reports and ICT/BPM related tasks. • Strategic Recommendations Policy Caps: Implementing strict time limits (e.g., 90-minute maximums) to ensure focused discussions. Selective Attendance: Inviting only essential decision-makers to reduce the cumulative man-hour cost. Alternative Channels: Moving routine updates to digital platforms or email to preserve focus for high-value tasks. • National Impact Transitioning to a purposeful meeting culture provides a competitive advantage. Improved management strategies are essential for the sustainable development and long-term economic performance of Sri Lankan organizations.

Read more →

CBSL to Drive Digital Payment Adoption in Kurunegala 📈

The Central Bank of Sri Lanka (CBSL) is conducting a two-day promotional campaign in Kurunegala (Feb 20–21, 2026) to accelerate the national shift toward a cashless economy. • Campaign Objective: Under the theme "Shaping the Future through Digital Payments," the initiative aims to raise awareness and onboard the business community and public onto secure digital platforms. • Strategic Partnerships: The program involves Licensed Banks, Finance Companies, and LankaPay, focusing on expanding the LANKAQR merchant network and mobile e-money systems. • Economic Context: This follows successful 2025 rollouts in Hambantota, Nuwara Eliya, and Dambulla, targeting retail and SME sectors to improve transaction efficiency and financial inclusion. • Participant Support: Governor Dr. Nandalal Weerasinghe and senior officials are overseeing the on-site registration for mobile banking and digital payment applications. _Note: Based on official CBSL event scheduling._

Read more →

📈 Sri Lanka 2026 Reforms: Addressing the English Literacy "Bottleneck"

A new economic analysis warns that Sri Lanka’s ambitious shift toward AI and STEM may be derailed unless the "lexical bar"—the threshold of English reading fluency—is addressed at the school level. • The Economic Cost The state currently bears a "double cost" by funding primary education and subsequent remedial English programs at the university level. This inefficiency creates a productivity ceiling, stalling the workforce in low-value activities and hindering the service sector from competing with regional hubs. • The "Lexical Bar" Threshold Students must transition from "learning to read" to "reading to learn" by Grade 11. Failure to cross this linguistic threshold leaves graduates unable to access English-medium curricula or master discipline-specific technical content in ICT/BPM, Science, and Business. • Policy Recommendations The 2027 deferment of the Grade 6 English syllabus offers a window to integrate the Science of Reading (SoR). Experts advocate for: Systematic Phonics: Explicit instruction in the 250 combinations of the alphabetic code (not just 26 letters). Strategic Retrofitting: Using the 2027 delay to update NIE Teacher Guides and Grade 6 modules. Equitable Access: Moving beyond elite backgrounds to ensure state schools provide foundational literacy. _Summary based on 2026 educational reform data._

Read more →

Sri Lanka Targets US$ 4 Bn Tourism Revenue with High-Yield Shift 📈

Sri Lanka’s tourism sector is pivoting from volume-driven growth to a high-value strategy, aiming to surpass US$ 4 billion in earnings for 2026. This follows a record-breaking 2025 which saw 2.36 million arrivals, outperforming the 2018 peak. • Key Performance Indicators Current Arrivals (As of Feb 15): 436,666 visitors, marking a 13% YoY growth. Pricing Power: 5-star hotel rates in Colombo surged from US$ 300 to US$ 500 during the ICC World Cup T20. Spending Goal: Strategic focus to increase the current average daily spend of US$ 148. • Interim Marketing Blitz Budget: Rs. 2 billion interim PR and digital campaign launching in April. Duration: 8-month bridge campaign until a full-scale global strategy (supported by ADB) is finalized. Target Markets: 12-15 key regions including India, UK, Germany, China, Russia, and the Middle East. • Sector Breakdowns & Diversification MICE: Segment grew from 5% to nearly 9% of total arrivals; target is to reach 20% by year-end. Niche Tourism: Renewed focus on wellness, marine tourism (whale watching/diving), wedding tourism (targeting India), and sports. Investments: Nearly 300 proposals received for upmarket, sustainability-focused tourism land projects. • Strategic Outlook The "value over volume" shift aims to improve yield through better product quality and regional expansion into hubs like Yala and Badulla. Promotional roadshows are planned across Asia and Europe to mitigate the post-April seasonal dip.

Read more →

Sri Lanka Tea Production Dips 3.6% in January 2026 📈

Sri Lanka’s tea industry started the year with a slight contraction, as a significant drop in Low Grown output offset gains in other elevations. • Overall Figures: Total production for January 2026 reached 20.68 M/kg, a decline of 3.63% YoY (0.78 M/kg) compared to January 2025. However, output remained 11.59% higher than January 2024 levels. • Sector Breakdown: • High Grown: Rose 4.04% to 4.76 M/kg. • Medium Grown: Edged up 0.35% to 3.41 M/kg. • Low Grown: Declined sharply by 7.32% to 12.32 M/kg. • Green Tea: Fell 1.24% to 0.19 M/kg. • 2025 Retrospective: The dip follows a resilient 2025 where total tea production reached 264.12 M/kg (+0.57% YoY). Tea export earnings for 2025 grew by 6% YoY, totaling US$ 1.51 Bn. • National Context: While the tea sector remains a vital source of employment and foreign exchange, the January results reflect the impact of supply-side challenges in low-grown regions, which typically dominate the export volume.

Read more →

LAUGFS Gas Assures Continuous Supply Amid Logistics Shifts 📈

• The Issue: LAUGFS Gas PLC reports temporary distribution constraints caused by operational limitations at its 30,000-metric-ton LPG import terminal in Hambantota. This has disrupted regular import logistics for the energy sector. • Interim Solutions: • Shipments have been rerouted directly to the Colombo Port. • Stocks have been secured and distribution mechanisms adjusted to ensure domestic demand is met. • The company is coordinating with government authorities to expedite the Hambantota terminal's operational clearance. • Current Status: Despite the shortfall in regular logistics, the company assures an uninterrupted supply of LP Gas to the market. The situation is being managed through these alternative supply chain routes to prevent any domestic energy shortage.

Read more →

Market News

(66)

Sri Lanka Overnight Liquidity Hits 22-Year High 📈

• Money Market: Net liquidity surplus crossed the Rs. 300 Bn mark to reach Rs. 322.93 Bn, the highest level in 22 years. The Central Bank drained Rs. 100 Bn via Repo auctions to manage the excess. • T-Bill Auction: Yields declined for the sixth consecutive week across all maturities. 91-day: 7.63% (-3 bps) 182-day: 7.92% (-7 bps) 364-day: 8.24% (-3 bps) The auction was undersubscribed, raising Rs. 67.88 Bn (75.4% of the Rs. 90 Bn offered). • Bond Market: Secondary market yields consolidated with renewed buying interest. A major Treasury Bond auction of Rs. 140 Bn is scheduled for today (Feb 26) across 2030, 2034, and 2037 maturities. • Forex & Rates: The USD/LKR spot exchange rate closed slightly stronger at 309.33/309.36. Call money and Repo rates averaged 7.69% and 7.71% respectively.

Read more →

📈 CSE Ends Volatile Session in Green Following Late Rally

The Colombo stock market recovered from a midday dip to close slightly higher yesterday, driven by selective buying interest despite negative overall market breadth. • Market Performance • ASPI: 23,703.10 (+0.05% | +12.48 points) • S&P SL20: 6,685.27 (+0.06% | +4.15 points) • Turnover: Over Rs. 4.0 Bn • Share Volume: 133.1 Mn shares traded • Sector & Stock Highlights • Diversified Financials led turnover (22%), followed by Capital Goods and Banking (combined 35%). • Key gainers included CDB, DIAL, PLR, JKH, and DOCK. • 101 stocks advanced while 127 declined, indicating concentrated gains in specific counters. • Crossings accounted for 16.8% of turnover, led by AEL.N (Rs. 230.2 Mn). • Investor Sentiment • Retail investors were the primary drivers of the session; high-net-worth (HNW) activity remained modest. • Foreign investors were net sellers with an outflow of Rs. 72 Mn. • Year-to-date (YTD) foreign outflow stands at Rs. 15.9 Bn. • Market P/E ratio: 11.17. _Note: Based on provisional market data._

Read more →

📈 Market Turnover Tops Rs. 4 Bn as Indices Edge Up

Sri Lanka’s equity market recorded a modest gain on Wednesday (Feb 25), supported by steady domestic participation at the Colombo Stock Exchange. • Market Performance The All Share Price Index (ASPI) rose by 12.48 points (+0.05%) to close at 23,703.10. The blue-chip S&P SL20 Index gained 4.15 points (+0.06%) to end at 6,685.27. • Turnover & Participation Total market turnover reached Rs. 4.02 Bn. Trading was heavily dominated by domestic investors, with local purchases and sales totaling Rs. 3.97 Bn and Rs. 3.90 Bn respectively. • Foreign Investor Activity Foreign participation remained subdued, resulting in a net foreign outflow for the session. Foreign Purchases: Rs. 48 Mn Foreign Sales: Rs. 114 Mn _Note: Market turnover was significantly influenced by the banking and diversified financials sectors._

Read more →

📈 Asia Markets Rally on AI Surge & Global Policy Watch

Regional financial markets climbed on Wednesday as investor confidence in Artificial Intelligence (AI) remains a primary growth driver, while attention shifts to US policy and Japanese monetary shifts. • Market Performance MSCI Asia-Pacific index rose 1.0%, led by a record high for Japan's Nikkei (57,956.92). South Korea’s KOSPI surged 1.7%, crossing the 6,000 mark for the first time, fueled by a 44% year-to-date gain. • Tech & AI Sector Memory chip manufacturers are the biggest beneficiaries of the AI boom. Samsung Electronics and SK Hynix stocks have doubled since October due to global shortages. Sentiment was further bolstered by Anthropic unveiling new business AI tools, reinforcing the ICT sector’s role in global profit growth. • Currency & Macro Outlook Japan: The Yen strengthened to 155.7/US$ amid uncertainty over Bank of Japan rate hikes, following reports of political reservations regarding further tightening. USA: Markets are awaiting President Trump’s State of the Union speech for clarity on trade and fiscal policy. Federal Reserve rate cuts are anticipated to begin in June 2026. Commodities: Crude oil rose approx. 0.75% (Brent at $71.30), while Gold remained flat at $5,138.49/oz. _Note: Market data based on early Wednesday trading sessions._

Read more →

📈 Secondary Bond Market Gains Interest Amid Major Auctions

The secondary bond market saw a slight uptick in rates yesterday as investors adopted a "wait-and-see" approach ahead of significant upcoming auctions and inflation data. Despite cautious sentiment, healthy transaction volumes were recorded via block trades. • Market Activity & Yields: Renewed buying interest emerged at elevated yield levels. Notable trades included 2028 maturities at 9.15%–9.19% and 2029 maturities between 9.39%–9.54%. Longer-term 2034/35 bonds traded in the 10.75%–10.85% range. • Upcoming Treasury Auctions: - T-Bills: Rs. 90 Bn on offer today (below maturing volume of Rs. 107.56 Bn). - T-Bonds: Rs. 140 Bn auction scheduled for Thursday across 2030, 2034, and 2037 maturities. • Liquidity & Money Market: The system remains in a strong net liquidity surplus of Rs. 297.94 Bn. The Central Bank drained Rs. 60 Bn via overnight repo at 7.63%. • Currency (USD/LKR): The Rupee remained stable, with spot contracts closing at Rs. 309.35/40. Total market volume stood at US$ 98.10 Mn (as of Feb 23). Investors remain focused on the February 2026 CCPI inflation data release due later this week to gauge future interest rate trajectories.

Read more →

Colombo Stocks Retreat Amid Conglomerate and Bank Sell-Off 📉

The Colombo stock market closed in the red on Tuesday, primarily weighed down by losses in heavyweights within the diversified holdings and banking sectors. • Overall Indices The benchmark ASPI fell by 0.39% (92.40 points) to end at 23,690.62. The S&P SL20 index, which tracks the 20 most liquid stocks, dropped 0.71% (47.59 points) to settle at 6,681.12. • Market Turnover & Foreign Activity Daily turnover stood at approximately Rs. 3.7 Bn, with over 152.5 million shares changing hands. Foreign investors remained net sellers, recording a net outflow of Rs. 729.3 Mn. • Sector Performance Capital Goods: Led turnover contribution (26%), though the sector index shed 0.91%. Key movements included ACL Cables (+Rs. 1.50) and Access Engineering (+Rs. 1.10), while John Keells Holdings (JKH) fell by Rs. 0.50. Telecommunication Services: Second highest contributor to turnover, with the index edging up 0.02%, despite a slight Rs. 0.10 drop in Dialog Axiata. Banks & Diversified Financials: Significant negative pressure came from Melstacorp, Nations Trust Bank, Sampath Bank, and Central Finance. • Investor Sentiment Retail interest was concentrated in Co-Operative Insurance, Browns Investments, and HVA Foods. High net worth (HNW) and institutional activity was notably observed in Dialog Axiata, ACL Cables, and Commercial Bank.

Read more →

Global Market Volatility Hits Asian Stocks Amid U.S. Trade Uncertainty 📈

• Market Performance: Asian markets stuttered as the MSCI Asia-Pacific index fell 0.2%, reversing a six-day rally. This follows a 1.0% drop in the S&P 500 and a 1.1% decline in the Nasdaq, driven by AI trade concerns and a bearish global economy report. • U.S. Policy Impact: Markets are reacting to President Trump's threat of higher duties under Section 122 of the Trade Act, targeting countries backing away from negotiated trade deals. This protectionist stance follows the Supreme Court striking down emergency tariffs, heightening global trade uncertainty. • Key Indicators: • Japanese Markets: The Nikkei 225 bucked the trend, advancing 0.7% upon returning from a holiday. • Currencies & Commodities: The USD strengthened slightly to 154.77 yen. Gold rose 0.3% to US$ 5,244.96 as a safe-haven asset, while WTI crude edged down to US$ 66.23 amid U.S.-Iran tensions. • Volatility: The VIX rose to 21.01, reflecting increased investor jitters. • Monetary Outlook: Fed funds futures signal a 95.5% probability that the U.S. central bank will hold interest rates steady at the March 18 meeting. Based on provisional data.

Read more →

Gold Prices Retreat as US Dollar Strengthens 📈

Global gold prices eased from a three-week high on Tuesday as a firmer US dollar offset safe-haven demand stemming from US-Iran tensions and tariff uncertainties. • Overall Market Figures: • Spot Gold: Fell 1.5% to US$ 5,150.38 per ounce. • US Gold Futures: Dropped 1.1% to US$ 5,170.70. • Spot Silver: Slid 3.1% to US$ 85.50 per ounce. • Platinum & Palladium: Decreased by 2.9% and 2.1% respectively. • Local Context (Sri Lanka): Based on Colombo's Sea Street market data, local gold prices remain highly sensitive to these global fluctuations. Following a recent volatility streak, 24-carat gold was recently recorded at approximately Rs. 451,500 per sovereign, while 22-carat gold stood near Rs. 413,900. • Economic Drivers: • Currency Impact: A stronger US dollar makes bullion more expensive for holders of other currencies, including the Sri Lankan Rupee. • Monetary Policy: Markets are monitoring potential US Federal Reserve rate pauses, which influence the opportunity cost of holding non-yielding assets like gold. • Geopolitical Risk: Tensions in Beirut and US-Iran relations provide a floor for prices despite the dollar's strength. Provisional data based on early morning trading sessions.

Read more →

### Secondary Bond Market Edges Up Amid Dull Trading 📈

The secondary bond market started the week with rising rates and subdued activity, as investors adopted a "wait-and-see" approach ahead of upcoming auctions and February inflation data. • Secondary Bond Market Profit-taking selling pressure continued to push rates higher across key maturities. 15.02.28 maturity: Traded at 9.00%. 15.10.28 maturity: Traded between 9.15% - 9.19%. 15.10.29 maturity: Traded at 9.50%. 15.06.35 maturity: Traded at 10.84%. • Liquidity & Money Market Market liquidity remained high with a net surplus of Rs. 288.48 Bn. The Central Bank drained Rs. 50 Bn via overnight Repo at a 7.62% weighted average. Weighted average rates for overnight call money and Repo stood at 7.68% and 7.70%, respectively. • Forex Market The USD/LKR spot exchange rate remained largely stable, closing at Rs. 309.36/309.38 compared to the previous close of Rs. 309.35/309.40. Total traded volume (as of Feb 20) was recorded at US$ 68.30 Mn.

Read more →

📈 CSE Opens Week with Marginal Gains Amid Volatility

The Colombo stock market began the week in positive territory, though it failed to sustain an early 109-point rally. The banking sector remained the primary driver of activity in a session characterized by retail-led participation and selective trading. • Overall Market Performance The All Share Price Index (ASPI) closed marginally up by 0.04% (+9.38 points) at 23,783.02. The blue-chip S&P SL20 index rose by 0.11% (+7.24 points) to end at 6,728.71. • Turnover and Trading Volume Daily turnover reached Rs. 2.56 Bn, slightly below recent averages, with over 97 million shares exchanged. High-net-worth (HNW) activity remained limited. • Sector & Stock Highlights The banking sector contributed 17% to the total turnover, followed by capital goods and materials, which jointly accounted for 29%. Key positive contributors included Melstacorp (MELS), Richard Pieris (RICH), Prime Lands Residencies (PLR), Commercial Bank (COMB), and Hatton National Bank (HNB). • Foreign Investor Activity Foreigners remained net sellers, recording a net outflow of Rs. 52.8 million for the day.

Read more →

📉 CSE Weekly Wrap: Market Ends in Red Amid Banking Sell-off

The Colombo stock market closed the week on a downward note, primarily weighed down by the banking and blue-chip sectors. Despite a mid-day recovery attempt, negative sentiment prevailed due to sector earnings and global tensions. • Market Indices: The ASPI dropped 0.40% (96.43 points) to close at 23,773.64. The S&P SL20 declined 0.32% (21.72 points) to 6,721.47. _Note: Despite the daily drop, the ASPI and S&P SL20 ended the full week up 0.27% and 1.55% respectively._ • Trading Activity: Daily turnover reached approximately Rs. 3.9 Bn with over 139 million shares traded. Foreign investors recorded a net outflow of Rs. 11.3 Mn. • Sector Performance: The banking sector dominated activity, accounting for 23% of daily turnover. Insurance and capital goods followed, collectively contributing 35%. • Key Contributors: Major negative drags on the index included Commercial Bank (COMB), Ceylon Hotels (CTHR), Melstacorp (MELS), Bukit Darah (BUKI), and John Keells Holdings (JKH). • Market Sentiment: Participation from High-Net-Worth (HNW) and retail investors remained subdued as the market reacted to the latest financial results and macroeconomic shifts.

Read more →

CSE Slips for Second Day with Broad-Based Decline 📉

The Colombo Stock Exchange (CSE) closed in the red for the second consecutive session today (Feb 20), as both key indices faced a broad-based decline amidst moderate trading activity. • Market Performance: - The All Share Price Index (ASPI) fell by 96.43 points, closing at 23,773.64. - The S&P SL20 Index, representing blue-chip stocks, dropped 21.72 points to end at 6,721.47. • Liquidity & Turnover: - Total market turnover amounted to Rs. 3.89 billion. The downward trend reflects a cautious sentiment in the banking and finance and diversified financials sectors, which often drive daily volatility. Based on provisional end-of-day data.

Read more →

Global & International Business

(41)

Diplomatic & Trade Mission: FM Vijitha Herath to Visit Germany 📈

• Foreign Minister Vijitha Herath will undertake an official visit to Germany from February 26-27, 2026, aimed at strengthening bilateral economic and political ties. • The visit centers on an invitation from the German-Asia Pacific Business Association (OAV) Bremen Chapter. Minister Herath will serve as the Guest of Honor and Keynote Speaker for Asia at the OAV’s 125th Anniversary event. • Key objectives of the mission include: • High-level discussions with German Foreign Minister Dr. Johann Wadephul. • Promoting Foreign Employment opportunities for Sri Lankans in the European market. • Hosting a business roundtable focused on attracting investment and enhancing Trade relations. • This engagement is significant for the Tourism and Labour Migration sectors, as the OAV is the largest German association dedicated to Asia-Pacific business partnerships, connecting Sri Lanka directly with major German policymakers and business leaders.

Read more →

Sri Lanka & New Zealand Eye Trade Expansion via Expo 2026 📈

The Export Development Board (EDB) held a high-level virtual meeting with New Zealand counterparts to bolster participation in Sri Lanka Expo 2026 and strengthen bilateral economic ties. • Trade Performance & Targets In 2025, Sri Lanka’s exports to New Zealand totaled approximately US$ 31.24 Mn. While New Zealand currently ranks as the 52nd export destination, the EDB identifies significant untapped potential for growth and diversification. • Key Export Sectors Current trade is dominated by: • Ceylon tea and processed foods • Apparel & textiles • Rubber-based products • Edible preparations • Strategic Focus Areas The Sri Lanka Expo 2026 aims to position the island as a sustainable sourcing hub, highlighting: • ICT/BPM and emerging technology solutions • Value-added agriculture and agribusiness • Sustainable manufacturing partnerships • Bilateral Cooperation High Commissioner David Pine and the Sri Lankan business community in NZ committed to facilitating trade delegations and exploring joint ventures to enhance value chains across both markets. _Data based on EDB provisional figures for 2025._

Read more →

Sri Lanka & Germany to Ink Major Market Access Pact 📈

The Cabinet of Ministers has approved a strategic cooperation agreement between the Sri Lanka Export Development Board (EDB) and the German Import Promotion Bureau (IPB) to enhance export penetration into Germany and the broader European Union. • Core Objective: Establishing a structured framework for long-term market integration, focusing on export readiness and compliance with rigorous EU environmental and due diligence standards. • Targeted Sectors: • Natural Raw Materials: Boosting high-value products like organic spices and coconut-based products. • ICT/BPM: Scaling the information technology outsourcing industry and digital services. • SMEs & Women-Led Businesses: Dedicated support for inclusive growth through technical guidance and capacity building. • Key Benefits: • Direct technical guidance on sustainability and quality regulations. • Facilitated B2B matchmaking and access to market intelligence. • Enhanced competitiveness for local exporters in high-value European markets. • Strategic Context: The pact aligns with Sri Lanka’s National Export Strategy (NES) for diversification and value addition. It precedes the Foreign Minister’s upcoming visit to Germany to further bilateral trade ties.

Read more →

📈 UK DCTS Reforms: Sri Lankan Exports Set for 10% Growth

The UK’s Developing Countries Trading Scheme (DCTS) reforms, effective 1 January 2026, are set to significantly enhance Sri Lanka’s trade competitiveness by allowing duty-free exports to the UK even when using globally sourced fabrics. • Sector Impact: The apparel & textiles industry is expected to see production volume growth in excess of 10%. Major UK retailers, including Tesco and Next plc, have reaffirmed their commitment to sourcing from Sri Lanka under the new tariff-free rules. • Logistics & Supply Chain: Significant boosts are anticipated for the logistics sector, particularly in multi-country consolidation (MCC) and quality assurance. Operations managed by Maersk, Speedmark, and Aitken Spence Logistics are already scaling to handle increased volumes. • Strategic Shifts: • Fabric Sourcing: Manufacturers are now actively expanding their global mill base across Southeast Asia and Europe to incorporate diverse materials into UK-bound collections. • Sustainability: High-end facilities are adopting low-emission freight operations, such as battery-powered forklifts, to meet UK retailers’ low-carbon supply chain requirements. • Economic Contribution: The scheme acts as a catalyst for job creation across transport, packaging, and warehousing units, while strengthening long-term UK–Sri Lanka trade relations and export diversification.

Read more →

SL Envoy Meets Habib Bank Chairman to Strengthen Bilateral Ties 📈

• Overall Engagement: Sri Lankan High Commissioner Fred Senevirathne met with Habib Bank Ltd (HBL) Chairman Sultan Ali Allana in Pakistan to reinforce long-standing economic and diplomatic relations. • Financial & Sector Impact: The meeting highlighted HBL’s decades-long presence in the banking and financial services sector in Colombo. The Chairman reaffirmed the bank's continued commitment to its operations and engagement within Sri Lanka. • Humanitarian Support: The Sri Lankan government expressed formal gratitude for HBL’s generous contributions toward relief efforts following recent devastating floods, emphasizing the role of international banking partners in national disaster recovery. • Future Outlook: Both parties reaffirmed strong bilateral ties between Pakistan and Sri Lanka. Chairman Allana expressed intentions for an upcoming visit to Sri Lanka to further enhance cooperation and people-to-people ties.

Read more →

📈 Sri Lanka-China Boost Agricultural Tech Cooperation

A specialized two-week training program on Tropical Food Production and Processing Technologies concluded in Kandy, marking a strategic advancement in bilateral technical cooperation. • Overall Scope: Jointly organized by the Chinese Academy of Tropical Agricultural Sciences (CATAS) and the Department of External Resources (ERD), the program ran from January 14 to 28, 2026. • Sector Breakdown: Focused on tropical food production, crop management, and value addition to modernize Sri Lanka’s agriculture sector. • Key Highlights: • Experts from CATAS shared global best practices and research-based insights. • Public officials from various agriculture-related Government institutions received hands-on technical training. • Primary focus was on food processing technologies and quality enhancement to strengthen human resource development. • National Impact: The initiative, supported by the Ministry of Finance, aims to enhance institutional capacity and facilitate deeper cooperation in agricultural sector development and institutional capacity building. _Source: Department of External Resources (provisional data)_ ---

Read more →

SL–UK Trade & Recovery: Opposition Leader Meets UK Deputy PM 📈

• Trade Growth: Total bilateral trade in goods and services reached £ 1.7 Bn for the four quarters ending Q3 2025, marking a 10.2% YoY increase. The UK remains Sri Lanka’s second-largest export destination. • Sector Performance: Apparel & textiles dominate exports to the UK, valued at £ 1.2 Bn and accounting for 73% of total earnings. Discussions noted a shift toward diversification into rubber, ethical fashion, and premium niche goods via Sri Lanka Expo 2026. • Trade Reforms: Under the UK’s Developing Countries Trading Scheme (DCTS) effective Jan 2026, 92% of Sri Lankan product lines now enjoy duty-free access. Key benefits include: • Global Sourcing: Manufacturers can source 100% of raw materials globally while maintaining zero-tariff entry. • Simplified Compliance: Removal of "double transformation" rules, benefiting MSMEs and startups. • Disaster Relief: Acknowledged £ 1 Mn (approx. US$ 1.32 Mn) in UK humanitarian aid following Cyclone Ditwah, supporting 1.8 million affected people with shelter, water, and medicine. • Governance & Policy: Discussions covered anti-corruption (GRECO), climate justice, and concerns over the Protection of the State from Terrorism Act (PSTA) and Online Safety Act to ensure they align with international civil liberty standards.

Read more →

## Sri Lanka-US Economic Ties Set for Expansion 📈

President Anura Kumara Dissanayake met with US Special Representative Sergio Gor in New Delhi to strengthen bilateral commercial relations and regional stability. The meeting occurred on the sidelines of India’s AI Impact Summit. • Key Trade Statistics (2025): US Market: Remains Sri Lanka’s largest export destination, accounting for 23% of total merchandise exports. Export Value: US$ 2,999.15 Mn (up 3.06% YoY). Total National Exports: Grew 5.6% to US$ 17.2 Bn in 2025. India Market: Ranked second with US$ 1,035.72 Mn (up 17.21% YoY). • Strategic Engagement: Discussions focused on reinforcing commercial relations and exploring new avenues for partnership. The President is scheduled to address the AI Impact Summit today (Feb 19) and hold a high-level bilateral meeting with PM Narendra Modi. • Context: The visit highlights Sri Lanka's focus on technology and economic diplomacy within the South Asian region. Based on provisional summit data.

Read more →

Microsoft Pledges US$ 50 Bn AI Investment for Global South 📈

Microsoft has announced it is on track to invest US$ 50 Bn by 2030 to expand AI infrastructure across the 'Global South,' targeting emerging and lower-income nations. • Overall Investment: A total commitment of US$ 50 Bn by the end of the decade, aimed at bridging the digital divide in developing economies. • Regional Focus: The 'Global South' encompasses emerging markets primarily in the southern hemisphere, including South Asia. • Key Benchmark: This follows a US$ 17.5 Bn investment in India last year, signaling a massive push into high-growth digital markets. • Economic Impact: For countries like Sri Lanka, such regional shifts highlight the growing importance of the ICT/BPM sector and the need for AI-ready infrastructure to remain competitive in the global digital landscape. _Note: Figures based on Microsoft corporate announcements at the New Delhi AI Summit._ ---

Read more →

📈 EDB Southern Province Networking Forum: Matara 2026

The Sri Lanka Export Development Board (EDB) will host the Southern Province Regional Exporters’ Networking Forum on Tuesday, February 24, 2026, in Matara. The initiative aims to empower regional exporters by directly addressing operational hurdles and identifying new growth avenues. • Strategic Participation The forum will connect exporters from the districts of Galle, Matara, Hambantota, and Monaragala with top-tier policymakers. Minister of Industries and Entrepreneurship Development, Sunil Hadunnetti, will preside over the event, facilitating direct dialogue between the industry and the state. • Objective & Problem Solving Heads of key government institutions and district-level Export Development Officers will attend to provide immediate solutions for exporter concerns. The EDB’s Southern Province Office has already begun pre-collecting proposals to ensure discussions focus on high-impact sectors like tea, spices, and fisheries. • Key Focus Areas Based on provisional data, the forum prioritizes: Identifying regional export barriers (logistics, regulatory, and market access). Strengthening the contribution of Southern SMEs to the national export target. Integrating provincial resources into global supply chains. • Submissions Exporters from the four districts are encouraged to submit issues via spo@edb.gov.lk or contact 041-223 1591 ahead of the Matara forum.

Read more →

📈 Japanese SME Delegation Eyes Investment in Sri Lanka

A high-level Japanese delegation from the International Cooperation Organisation for SMEs in Asia (ICOSA) and CHO-DO-KYO (representing 50,000+ Japanese SMEs) arrived in Sri Lanka on February 15 to explore investment and technical collaboration. • Strategic Focus: The mission centers on sharing "People-Respecting Management" best practices and identifying investment opportunities for Japanese SMEs in the local market. • Investment Ties: On February 16, the delegation held discussions with the Sri Lanka-Japan Business Council of the Ceylon Chamber of Commerce regarding large-scale and SME-sector investments. • Economic Context: The visit follows the recent signing of a Memorandum of Cooperation (MoC) between Sri Lanka and Japan to establish an industrial economic corridor, aimed at boosting manufacturing and export capacity toward regional markets like India. • Partnerships: Facilitated by JASTECA, the visit underscores a renewed interest from Japan to integrate Sri Lankan SMEs into global value chains through technology transfer and ethical management.

Read more →

📈 China Grants Zero-Tariff Access to 53 African States

China will fully implement a zero-tariff policy for 53 African nations starting 1 May 2026. The move, announced during the African Union Summit, aims to deepen trade ties and facilitate "green channels" for African exports. • Global Trade Impact: The policy removes duties on 100% of tariff lines for countries with diplomatic ties to Beijing. This is a significant expansion from previous measures that primarily covered Least Developed Countries (LDCs). • Key Sector Shifts: While African exports are currently dominated by raw materials, the new policy and Economic Partnership Agreements are designed to boost value-added goods, including: • Agriculture: Enhanced access for coffee, seafood, and fruits. • Manufacturing: Incentives for Chinese firms to relocate light manufacturing to Africa for duty-free re-export to China. • Regional Context for Sri Lanka: As a competitor in the Chinese market for tea, seafood, and apparel & textiles, Sri Lankan exporters may face increased price competition from African counterparts. However, Sri Lanka is currently bolstering its own position via the Trusted Trader programme and the upcoming Sri Lanka Expo 2026.

Read more →

Financial & Investment News

(14)

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._

Read more →

## 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.

Read more →

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.

Read more →

## 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.

Read more →

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.

Read more →

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._

Read more →

## 📈 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._

Read more →

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.

Read more →

📈 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.

Read more →

📈 TESS Agro to Raise Rs. 250 Mn via Private Placement

TESS Agro PLC has announced a strategic shift in its funding plans, opting for a private placement of shares to raise Rs. 250 million, replacing a previously proposed debenture and warrant structure. • The Deal: The company will issue up to 125 million ordinary voting shares (approximately 18.5% of issued voting shares) at Rs. 2.00 per share. • Investor: The shares are to be issued to Oman-based SE Capital Trading SPC. • Purpose of Funds: Proceeds are earmarked for the repayment of existing borrowings, meeting working capital requirements, and funding capital expenditure. • Financial Context: As of Dec 2025, the company reported long-term borrowings of Rs. 343.3 million and short-term debt of Rs. 156 million. Net assets stood at 39 cents per share. • Market Reaction: Following the announcement, TESS Agro voting shares closed at Rs. 2.10 (down 10 cents), while non-voting shares remained unchanged at Rs. 1.50. The move is part of a broader capital restructuring for the agriculture and export sector firm and remains subject to shareholder and regulatory approvals from the CSE and SEC.

Read more →

📈 2026: A Catalyst Year for Sri Lankan IPOs

Asia Securities projects a robust phase for Initial Public Offerings (IPOs) in 2026, driven by macroeconomic stability, regulatory reforms, and favorable monetary conditions. • Market Outlook & Drivers Low interest rates are shifting funding preferences from debt to equity, offering permanent capital without debt-servicing strains. The Colombo Stock Exchange (CSE) plans a digital listing portal and a 7-day review process to expedite market entry. Secondary market liquidity and valuation benchmarks have improved following a strong recovery post-2022 crisis. • Economic Context Government Revenue has recovered to over 15% of GDP, meeting critical debt-restructuring framework targets. 2025 marked the third consecutive year of a primary surplus, with Sri Lanka outperforming IMF targets. External debt obligations are capped at under US$ 2.5 Bn per year for 2026-2027, significantly improving sustainability. • Private Sector & Investment Private sector credit growth exceeded Rs. 200 Bn per month since mid-2025, with credit-to-GDP at 31.3%. Current investment-to-GDP stands at 27%; reaching 6% economic growth requires this to hit 30-31%. Recent success: Cable Solutions Ltd (listed Aug 2024) saw its share price more than double from Rs. 7.50 to over Rs. 15. • Strategic Benefits Listings are expected to improve corporate governance and succession planning for family-owned businesses. Emphasis remains on increasing participation from State-Owned Enterprises (SOEs) and private firms to expand market capitalization.

Read more →

📈 Equities Outperform Traditional Assets in Sri Lanka

A 5-year analysis ending December 2025 highlights the superior wealth creation potential of equities over fixed income and real estate in the local market. • Market Performance The Colombo Stock Exchange (CSE) ASPI recorded a 5-year CAGR of ~27.28%. Capital invested at end-2020 more than tripled by end-2025. Annual gains: 41.89% (2025), 25.5% (2024), and 49.66% (2023). • Comparative Returns Fixed Income: T-bills and bank deposits averaged ~10% annually, often yielding negative real returns when adjusted for inflation and taxes. Real Estate: Hampered by high transaction costs (8–10%), low liquidity, and rental yields rarely exceeding mid-single digits. Gold: Underperformed productive assets over full cycles; globally, equities (8.1%) outpaced gold (6.7%) from 1990–2025. • Sector & Unit Trust Insights Diversified equity unit trusts saw 5-year CAGRs exceeding 20%. Balanced funds underperformed pure equities due to fixed-income "drag." Equity growth is driven by corporate earnings reinvestment and valuation normalization post-economic crisis. • Key Takeaway While fixed income is essential for liquidity, long-term wealth accumulation in Sri Lanka is most effectively achieved through equities, benefiting from compounding and business growth.

Read more →

Appointments & Executive Moves

(40)

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

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

Read more →

Mazagon Dock Nominees Appointed to Colombo Dockyard Board 📈

Colombo Dockyard PLC (CDPLC) has officially appointed several new directors nominated by its major shareholder, India’s Mazagon Dock Shipbuilders Ltd (MDL), effective February 24, 2026. This follows MDL's recent acquisition of a 41.73% stake (164.9 Mn shares) as part of a US$ 52.96 Mn strategic investment to revive the facility. • New Board Appointments • Capt. Jagmohan: Chairman & MD of MDL (Non-Executive, Non-Independent Director). • Biju George: Director (Shipbuilding) of MDL. • Ruchir Agrawal: Director (Finance) of MDL. • Thimira S. Godakumbura: Current MD/CEO of CDPLC, now representing MDL. • Strategic Context • The shift reflects MDL’s increasing oversight as it moves toward securing a 51% controlling interest via an ongoing mandatory offer at Rs. 40.00 per share. • The partnership aims to integrate Sri Lanka’s shipbuilding & heavy engineering sector into regional supply chains and resolve long-standing working capital constraints. • Governance & Growth • Nominees bring expertise in naval architecture, defense operations, and finance to strengthen strategic oversight. • Appointments were approved by the Nomination and Governance Committee in compliance with CSE listing rules.

Read more →

Headline: Corporate Heavyweight Chinthaka Jayaweera Joins Boards of Ceylon Guardian and Ceylon Investment 📈

Carson Cumberbatch group companies Ceylon Guardian Investment Trust PLC and Ceylon Investment PLC have announced the appointment of Chinthaka Jayaweera as an Independent Non-Executive Director, effective February 2026. • Executive Profile A veteran with over 28 years of global experience at A.P. Moller Maersk Group, Jayaweera previously served as Vice President and Chief Internal Audit Executive. He brings extensive expertise in governance, risk management, and global finance operations, having spent over two decades at Maersk's head office in Denmark. • Strategic Board Expansion His appointment extends beyond the investment sector; he has also joined the boards of other major entities within the group, including: Bukit Darah PLC Carson Cumberbatch PLC Equity Two PLC (Real Estate) Pegasus Hotels of Ceylon PLC (Leisure/Hospitality) • Qualifications & Background Education: Global Executive MBA from TRIUM (LSE, NYU Stern, and HEC Paris); leadership programs at Harvard and INSEAD. Professional: Fellow of CIMA (UK) and Member of CIM (UK). Career Roots: Started at KPMG Sri Lanka and Vanik Incorporation before a long-tenured career in international logistics and shipping. The addition of such a high-caliber professional is expected to strengthen independent oversight and risk compliance across these key investment and holding companies. _Note: Based on official corporate disclosures to the Colombo Stock Exchange (CSE)._

Read more →

Suresh Shah appointed as HNB Chairperson effective April 2026 📈

• Leadership Transition: The Board of Hatton National Bank (HNB) PLC has appointed Suresh Kumar Shah as Chairperson, effective 1 April 2026. He succeeds Nihal Jayawardene PC, who retires following the AGM on 31 March 2026. • Profile & Expertise: Shah is currently an Independent Non-Executive Director at HNB and a Fellow of the Institute of Chartered Accountants of Sri Lanka. He brings extensive experience from the banking & finance and beverage sectors, having served as CEO of Lion Brewery (Ceylon) PLC and Ceylon Beverage Holdings PLC for 30 years. • Public Policy & Governance: A significant figure in Sri Lanka's economic policy, Shah previously headed the Government’s State-Owned Enterprise (SOE) Restructuring Unit. His leadership background includes chairing The Ceylon Chamber of Commerce and The Employers’ Federation of Ceylon. • Current Board Roles: He maintains a strong presence in the corporate sector, serving as Chairman of Ceylon Tobacco Company PLC and holding directorships at Carson Cumberbatch PLC, Bukit Darah PLC, and Lanka Canneries Ltd.

Read more →

Dr. Parakrama Dissanayake Returns as SLPA Chairman 📈

Maritime industry veteran Dr. Parakrama Dissanayake officially assumed office as Chairman of the Sri Lanka Ports Authority (SLPA) today, 17 February 2026. This marks his third tenure leading the authority at a critical juncture for the logistics & shipping sector. • Strategic Leadership: A former Presidential Advisor and the first non-British President of the Institute of Chartered Shipbrokers (UK), Dr. Dissanayake brings extensive experience from both the public and private sectors, including leadership roles at Aitken Spence PLC. • Key Objectives: His new term will prioritize: • Enhancing operational efficiency and digitalization. • Expanding capacity to meet the target of 15 million TEUs by end-2026. • Strengthening Sri Lanka’s position as the primary transshipment hub in South Asia. • Economic Context: The appointment follows a strong performance in 2025, where the Port of Colombo recorded a historic high of 8.29 million TEUs. Under his previous leadership, SLPA achieved its then-highest profit of Rs. 13.1 billion, and Colombo was ranked as the world's fastest-growing container port (1H 2018). • Infrastructure Focus: His tenure is expected to oversee the finalization of the East Container Terminal (ECT) and the West Container Terminal (WCT), which are pivotal for national employment and regional trade competitiveness.

Read more →

Kamal Munasinghe Appointed GM of Cinnamon Life at City of Dreams 🏨

• Executive Move: Hospitality veteran Kamal Munasinghe takes the helm as General Manager effective 15 February 2026. He concurrently retains his role as Senior Vice President – Colombo Hotels for Cinnamon Hotels & Resorts. • Experience Profile: Brings 30+ years of local and international experience (Switzerland, Malaysia, Vietnam). Previous leadership roles include COO of Cinnamon Hotels and stints with global brands like Marriott, Hyatt, and Mövenpick. • Strategic Focus: Tasked with driving the next growth phase of South Asia’s first fully integrated resort, aiming to solidify Colombo’s position as a hub for luxury hospitality, entertainment, and business. • Project Scope: Cinnamon Life represents Sri Lanka’s largest private sector investment. The landmark development features: • 687 luxury rooms and suites. • 5 grand ballrooms and an extensive restaurant portfolio. • A premium retail mall and over 1,000 pieces of Sri Lankan art. • Economic Impact: The appointment comes at a pivotal moment for tourism, with the integrated resort serving as a catalyst for urban transformation and global positioning of the travel & leisure sector.

Read more →

Diplomatic Appointments: Parliament Approves Four New Heads of Mission 🇱🇰

The Committee on High Posts, chaired by Prime Minister Dr. Harini Amarasuriya, has officially approved the nominations for four key diplomatic representatives. These appointments are vital for strengthening Sri Lanka’s bilateral relations and labor migration oversight in the Middle East and Africa. • New Diplomatic Appointments: State of Israel: H.M.G. Saman Kumar Chandrasiri (Ambassador) Republic of Kenya: W. Peter Rohan Dhammika Fernando (High Commissioner) Lebanese Republic: Anura Withanage (Ambassador) State of Palestine: Mohamed Farook Mohamed Fawzer (Representative) • Strategic Context: These appointments cover regions critical to Sri Lanka’s foreign employment sector and regional diplomacy. The approvals follow standard parliamentary vetting to ensure leadership stability in missions overseeing trade and citizen welfare abroad. _Note: Based on official parliamentary committee reports._

Read more →

New Leadership: Chinthaka Jayaweera Joins Carson Group Boards 📈

• Corporate Governance: Chinthaka Jayaweera has been appointed as an Independent Non-Executive Director to the boards of Bukit Darah PLC, Carson Cumberbatch PLC, Equity Two PLC, and Pegasus Hotels of Ceylon PLC. • Professional Background: A seasoned executive with 28 years at A.P. Moller Maersk Group, most recently serving as Vice President and Chief Internal Audit Executive in Denmark. His expertise spans Governance, Risk Management, Internal Controls, and Compliance. • Local & Global Expertise: • Former Country Manager for Maersk Logistics – Sri Lanka and Maldives. • Previous roles at KPMG and Vanik Incorporation. • Experienced in overseeing global finance operations and independent roles for high-net-worth family trusts. • Qualifications: Holds a Global Executive MBA from TRIUM (LSE, NYU Stern, and HEC Paris). He is a Fellow of CIMA (UK) and a Member of CIM (UK), with additional executive education from Harvard Business School and INSEAD. • Strategic Impact: The appointment brings significant international logistical and financial oversight experience to these key Sri Lankan entities across the investment holding, real estate, and hospitality sectors.

Read more →

New Leadership for Sri Lanka’s Digital Transformation 📈

• Appointment Details: President Anura Kumara Dissanayake has formally appointed Mr. Waruna Sri Dhanapala as the Secretary to the Ministry of Digital Economy. The appointment letter was handed over today, 13 February 2026, at the Presidential Secretariat. • Professional Profile: Mr. Dhanapala is a Special Grade officer of the Sri Lanka Administrative Service (SLAS). His transition to the permanent role follows his tenure as Acting Secretary for the same ministry since 29 November 2024. • Strategic Context: This appointment solidifies leadership within the ICT/BPM and digital infrastructure sectors, which are pivotal for national economic diversification and modernizing public service delivery. • Status: Based on official presidential communications.

Read more →

## ADB Appoints Sona Shrestha as Director General for South Asia 📈

The Asian Development Bank (ADB) has officially appointed Sona Shrestha as the Director General of its South Asia Department (SARD). She will oversee strategic operations across six nations, including Sri Lanka, India, and Bangladesh. • Leadership & Strategy: Shrestha will lead the implementation of ADB’s development strategies, focusing on promoting inclusive and sustainable growth within the South Asian region. • Extensive Experience: A veteran development leader with over 27 years of experience, including 23 years at the ADB. Her previous roles include Deputy Director General for SARD and leadership positions in financial sector and trade divisions. • Regional Focus: Her remit covers Sri Lanka, Bangladesh, Bhutan, India, Maldives, and Nepal. Shrestha’s background includes deep operational experience across Central, West, and Southeast Asia. • Academic Background: A national of Nepal, she holds a Doctorate and Master’s in Economics from the University of California and a Bachelor’s from Smith College. _Note: Appointment effective as of February 2026._

Read more →

Govt. to Overhaul State Institution Leadership 📈

Cabinet Spokesman Dr. Nalinda Jayatissa has announced an upcoming reshuffle of top positions across several state-owned enterprises (SOEs) and statutory bodies. The move is part of a broader government effort to streamline administration and enhance institutional efficiency. • Overall Strategy: The government is currently finalizing names for new appointments to replace several existing chairpersons and heads of boards of directors. • Key Sectors Affected: While specific institutions have not yet been named, the reshuffle is expected to impact major entities within public utilities, transport, and finance. • Reasoning for Changes: • Requests for transfers from officials for personal or professional reasons. • Strategic decisions to appoint leadership deemed more beneficial for current policy goals. • Transition toward "professionalism" and "meritocracy" to reduce historical political patronage in SOEs. • Implementation Status: Based on provisional data, discussions are ongoing. Specific names and institutions involved are expected to be announced in the coming days.

Read more →

### AAFI Appoints New Board for 2026/2027 📈

The Association of Alternate Financial Institutions (AAFI), the national representative body for Sri Lanka’s non-interest-based alternate finance sector, has unanimously re-elected its leadership for a two-year term effective January 2026. • New Executive Board Appointments: President: Siddeeque Akbar (VP – Retail Banking & Marketing, Amana Bank) Vice President: Suresh R. I. Perera (Principal – Tax & Regulatory, KPMG) Secretary: Rifka Ziyard (Principal – Tax & Regulatory, KPMG) Treasurer: Bahar Nayan (Senior Manager – Islamic Banking, NDB) Assistant Secretary: Ilsam Awfer (Chief Manager – AFSU, LOLC Finance) Assistant Treasurer: Hisham Ally (DGM, HNB) • Industry Impact & Scope: The AAFI serves as the collective voice for alternate finance, driving regulatory alignment and policy dialogue. The sector is critical for financial diversification and inclusion, attracting participation from leading commercial banks and finance companies including BOC, HNB, Commercial Bank, and People’s Leasing. • Digital Expansion: To enhance transparency and stakeholder engagement, the association officially launched its dedicated website (www.aafi.lk). • Strategic Vision: The board aims to optimize the potential of the participatory banking model to support national economic growth and sector development through 2027.

Read more →

Regulatory & Policy News

(104)

National Capital Markets Symposium to Strengthen Regulatory Framework 📈

The Bar Association of Sri Lanka (BASL) will host the National Capital Markets Symposium on February 26, 2026, focusing on the legal and regulatory evolution of the country's securities sector. • Core Objective: Strengthening the integrity of Sri Lanka's capital markets to restore investor confidence and support sustainable economic recovery. • Key Thematic Areas: • Regulatory functions of the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE). • Listing requirements, capital formation, and issuer compliance obligations. • Enforcement strategies regarding insider trading and market manipulation (e.g., wash trades and false market activity). • Transparency, timely disclosure, and fair trading practices. • Strategic Importance: The forum aims to bridge the gap between legal expertise and market perspectives, ensuring a resilient ecosystem for listed companies, investment advisers, and investors. • Key Participants: Senior officials from the SEC and CSE, legal practitioners, and financial leaders, emphasizing that a predictable legal framework is vital for attracting global capital and protecting stakeholders.

Read more →

📈 Modernizing Financial Recovery: Sri Lanka’s New Insolvency Law

Sri Lanka is set for a landmark structural shift with the proposed Rescue, Rehabilitation and Insolvency Law. Moving away from the 1853 Ordinance, the bill shifts the focus from simple liquidation to business continuity and economic stability. • Strategic Objectives The framework aims to preserve enterprise value and protect employment by providing viable businesses a "second chance." It aligns Sri Lanka with global standards, crucial for boosting investor confidence following recent economic restructuring. • Core Pillars of the Bill Corporate Rescue: Introduces an administration regime allowing a temporary pause on creditor actions to facilitate restructuring negotiations. SME Support: Tailored mechanisms specifically for MSMEs to ensure the recovery process is accessible for smaller enterprises. Personal Insolvency: A shift for individuals, offering structured debt protection and rehabilitation orders before bankruptcy. Regulatory Oversight: Establishment of an independent Insolvency Regulatory Authority to professionalize practitioners and maintain high standards. • Economic Impact & Implementation The law addresses the high NPL (Non-Performing Loan) environment by creating predictable outcomes for creditors. Key challenges include the need for specialized training for the judiciary and balancing the new "moratoriums" with the rights of secured lenders. _Status: Based on provisional legislative drafts as of February 2026._

Read more →

Tourism Paradox: Rising Arrivals vs. Leaking Revenue 📈

Opposition MP Dr. Harsha de Silva has highlighted a "tourism paradox" where surging visitor numbers are not translating into proportional economic gains for Sri Lanka. • Revenue Leakage: Foreign nationals are reportedly operating unlicensed cafes, bars, and surf camps on tourist visas. Payments are often processed through overseas platforms, preventing income from entering the local economy. • Regulatory Gaps: The MP stressed that all operators must adhere to the same rules regarding licences, local employment, and taxes to ensure fair competition and fiscal benefit. • Overtourism & Environment: Concerns were raised regarding excessive visitor volumes at ecologically sensitive sites like Yala and UNESCO-listed Sigiriya, threatening long-term sustainability. • Strategic Shift: The MP advocates for a "quality over quantity" approach to sustainable tourism to mitigate pollution and congestion while protecting cultural assets.

Read more →

Cabinet Approves Updated National Tariff Policy to Boost Trade Coherence 📈

The Cabinet of Ministers has approved a revised National Tariff Policy to align Sri Lanka’s trade framework with current economic and fiscal conditions. The move follows a comprehensive review aimed at improving transparency and legal compliance. • Core Objective: To establish a predictable and coherent tax system that supports trade, investment, and fiscal management. • Key Revisions: The update addresses misalignments with recent economic data and ensures consistency with existing tax laws and statutory provisions. • Regulatory Oversight: The review incorporated specific recommendations from the Committee on Public Finance (COPF) to remove administrative complexities and ensure adherence to legal requirements. • Economic Impact: The policy aims to strengthen the ICT/BPM, manufacturing, and export sectors by providing a more transparent tariff structure, crucial for national employment and economic diversification. The implementation was approved following a resolution by the President in his capacity as the Minister of Finance, Planning, and Economic Development.

Read more →

CBSL Revives Banking Sector Consolidation for Smaller Players 📈

The Central Bank of Sri Lanka (CBSL) has reintroduced a consolidation framework aimed at strengthening the banking sector's credit profiles and capital buffers. • Overall Strategy: The framework targets licensed banks with assets below LKR 400 Bn. While the immediate system-wide impact is expected to be modest—affecting banks representing less than 5% of sector assets—it aims to create better-capitalized institutions capable of handling larger exposures. • Implementation & Timeline: A scoring system will evaluate banks from 1 January 2026 to 31 December 2027. Institutions scoring below 60% may face mandatory consolidation. • Key Sector Moves: • Momentum is already visible with the expected acquisition of HDFC Bank (Rating Watch Positive) by Bank of Ceylon. • State Mortgage & Investment Bank (SMIB) is expected to be acquired by People’s Bank. • Consolidation is likely to focus on the 13 licensed commercial banks and 6 licensed specialized banks currently operating in the domestic market. • Economic Impact: Fitch Ratings suggests that merging smaller, niche-model banks with larger, established peers will improve cost efficiency and market confidence. However, success depends on managing recapitalization needs and potential asset quality issues during integration. • Status: Based on Fitch Ratings analysis of the 2026-2027 CBSL framework.

Read more →

## 📈 UN Support for Cyclone-Hit MSMEs in Sri Lanka

A high-level delegation from the UNDP and UNCDF recently concluded a visit to Sri Lanka (Feb 16–20) to establish a sustainable financing framework for businesses impacted by Cyclone Ditwah. • Core Objective: Designing a financially responsible mechanism to support recovery for micro, small, and medium-scale industrialists (MSMEs) following the cyclone's impact. • Strategic Focus: Risk Mitigation: Enhancing the capacity of small businesses to withstand future shocks. Financial Literacy: Improving economic resilience and recovery capabilities for entrepreneurs. Credit Support: Collaboration with the National Credit Guarantee Institution (NCGIL) and the Industrial Development Board (IDB) to facilitate access to capital. • Key Stakeholders: The initiative is a joint effort between the Ministry of Industry and Entrepreneurship Development and UN agencies, involving the Small Enterprise Development Division (SEDD) and the National Enterprise Development Authority (NEDA). • Context: This framework aims to build long-term economic stability for the MSME sector, which is critical for national employment and regional economic diversification post-disaster.

Read more →

IRD Launches Privilege Card Scheme for Tax-Compliant Individuals 📈

The Inland Revenue Department (IRD) has introduced a new reward system to recognize high-value and compliant individual taxpayers through a tiered Privilege Card program. • Eligibility Criteria Taxpayers must have submitted their Return of Income by the deadline (typically 30 Nov) and settled all self-assessment payments, including Advanced Income Tax (AIT) and Withholding Tax (WHT), within stipulated timelines for the preceding Year of Assessment. • Tiered Reward System Gold Card: Awarded to individuals with annual income tax payments of Rs. 5 million or above. Silver Card: Issued to those who have paid between Rs. 3 million and Rs. 5 million. • Exclusive Benefits Priority Access: Dedicated entry to meet the Commissioner General and senior management. Personalized Service: Assignment of a nominated officer from Tax Services Units and on-site tax consultancy if required. Recognition: Provision of a vehicle sticker and an exclusive elegant logo brooch. • Deadlines & Application For 2026, applications are accepted until 28 February 2026 (extended from the usual Jan 31 deadline). Submissions require a copy of the Return of Income, NIC/Passport, and T-10 Certificate where applicable. Cards are typically issued within three weeks of approval.

Read more →

### Coal Tender Controversy: Ministry Admits Quality Shortfall 📈

Agriculture Minister K.D. Lalkantha has officially acknowledged the supply of inferior quality coal under a recent state tender, but denied any fraud or corruption in the procurement process. The government maintains that transparent procedures were followed. • Key Admissions & Quality Issues Minister Lalkantha confirmed reports of substandard coal are "true." Opposition Leader Sajith Premadasa alleged the 9th shipment from a South African supplier is also below standard. Real-time data reportedly shows power output from this shipment dropped to 250–275 MW, well below the expected 300 MW per unit at the Norochcholai plant. • Financial & Operational Impact Loss Recovery: The government claims established criteria will be used to recover financial losses from suppliers. Economic Risk: The Opposition warns of increased fuel consumption, potential machinery damage, and higher costs for the energy sector, which could burden consumers. Previous Allegations: Opposition MPs previously estimated losses from the coal tender at approximately Rs. 8 Billion to Rs. 10 Billion. • Procurement Stance The administration defends the current process as more structured than previous "Cabinet-led" selections. Details on the supplier’s identity, total volume, and specific financial impact remain undisclosed (based on provisional data).

Read more →

Sri Lanka's Pension Reform: A Blueprint for Social Justice 📈

A new policy perspective highlights the shift from political pension debates to a sustainable national framework. The proposal emphasizes a transition from discretionary benefits to a structured, two-pillar system to ensure long-term fiscal stability. • Core Framework: Proposed dual-structure: 1. State Pension: A contributory fund based on National Insurance, replacing the current tax-funded burden. 2. Employment-Based Pension: Strengthening existing models like the EPF (20% total contribution) with tax-incentivized voluntary schemes. • Key Economic Proposals: Retirement Age: Uniform eligibility at 65 years for both genders to ensure fund sustainability. Caregiver Recognition: Credits for up to 16 years of unpaid childcare, recognizing parenting as a national service. Integration: Merging Aswesuma, Samurdhi, and elderly allowances into a unified, actuarially-sound national system. • Governance & Equity: Legislative Reform: Eliminating disproportionate pensions for politicians with minimal service years. Sector Specifics: Specialized schemes for healthcare, police, and armed forces to remain transparent and proportionate to service. Sustainability: Moving away from politically motivated handouts toward rational, data-driven social safety nets.

Read more →

📈 SEC & SLAASMB Partner to Bolster Financial Governance

The Securities and Exchange Commission of Sri Lanka (SEC) and the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) have signed a Memorandum of Understanding (MOU) to enhance oversight of financial reporting and auditing standards within the capital market. • Strategic Scope: The formal framework covers entities licensed under the SEC Act, including stock exchanges, brokers, dealers, unit trusts, fund management companies, and listed companies. • Oversight Roles: • The SEC will scrutinize annual reports for regulatory compliance and disclosure requirements under Sri Lanka Accounting Standards (LKASs/SLFRSs). • The SLAASMB will focus on verifying compliance with both Accounting and Auditing Standards. • Key Collaborative Measures: • A structured information-sharing mechanism to exchange findings on material non-compliance, regulatory decisions, and investigative outcomes. • A formal referral system for complaints regarding financial reporting and auditing. • Joint public awareness initiatives to promote transparency and corporate governance. • Impact: This alliance aims to strengthen market integrity and investor confidence by ensuring more rigorous financial reporting and auditing oversight across Sri Lanka's financial services sector.

Read more →

### 📈 EU Demands US Adherence to Trade Pact After Supreme Court Ruling

The European Commission has called for "full clarity" from Washington, insisting that the U.S. honor the terms of last year’s bilateral trade agreement following a disruptive weekend of tariff hikes. • The Conflict: Following a U.S. Supreme Court ruling on Friday that struck down global tariffs, President Trump imposed temporary 10% across-the-board levies, which were further increased to 15% a day later. • The Agreement: Under the existing pact, the U.S. capped tariffs on most EU goods at 15%, with specific exemptions (0% tariffs) for sectors like aircraft and spare parts. In exchange, the EU removed duties on various U.S. goods. • Economic Impact: • The EU warns that unpredictable tariffs are undermining global market confidence. • The Commission insists on maintaining the previously agreed "all-inclusive ceiling" to ensure "fair and balanced" trade. • For Sri Lanka’s export-oriented economy, particularly in apparel & textiles and tea, heightened volatility in Transatlantic trade relations often signals broader global supply chain instability and shifting demand in Western markets. • Next Steps: EU Trade Commissioner Maros Sefcovic has initiated discussions with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to resolve the breach of the "deal is a deal" stance.

Read more →

Court of Appeal Restores Tourist Tuk-Tuk Licensing Framework 📈

The Court of Appeal has intervened to preserve the legal framework allowing foreign tourists to drive three-wheelers in Sri Lanka using International Driving Permits (IDP). • Legal Status: The court granted Interim Orders (C.A. Writ 1154/25) reversing a November 2025 directive that suggested tourists could no longer drive tuk-tuks. The ruling restores the status quo ante, upholding Sri Lanka’s obligations under the 1949 Geneva Convention on Road Traffic. • Regulatory Framework: Foreign visitors with a valid IDP may lawfully drive upon obtaining a local covering permit from the Department of Motor Traffic or the Automobile Association of Ceylon. This is a statutory requirement, not an administrative concession. • Economic Impact: The court noted that a sudden change in policy would adversely affect tourism business operations and the livelihoods of hundreds of Sri Lankan families dependent on the leisure and transport sector. • Sector Focus: The decision protects the tourism industry’s diversification, specifically the niche self-drive tuk-tuk market which has become a popular attraction for international travelers. _Status: Based on Court of Appeal Interim Orders; final legal determination pending._

Read more →

Startups & Entrepreneurship

(8)

## 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.

Read more →

## 📈 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.

Read more →

📈 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.

Read more →

## 📈 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.

Read more →

📈 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.

Read more →

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

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

Read more →

📈 AI Funding Surge Targets Blue-Collar Automation

A significant shift in AI investment is targeting physical environments, potentially extending automation risks to traditionally manual sectors. Startups are raising billions to develop "software brains" for robots capable of navigating complex, real-world settings. • Investment Highlights: Toronto-based Waabi raised up to US$ 1 Bn for autonomous transport, marking a record Canadian startup round. Skild AI (Pittsburgh) secured ~US$ 1.4 Bn at a US$ 14 Bn valuation, while Field AI raised nearly US$ 400 Mn for hazardous sectors. • Sector Impact: Automation is moving beyond white-collar tasks toward logistics, construction, energy, and food preparation. Key applications include plumbing, welding, and vehicle repairs by robots that understand physics and varying physical conditions. • Strategic Approaches: Developers are split between using vast real-world data and "world models" (simulated environments incorporating gravity and physics). The latter is championed by AMI Labs, a new venture by former Meta AI lead Yann LeCun. • Economic Implications: While hardware costs and transition expenses may slow immediate adoption, the shift poses long-term questions for labor-intensive industries. For an economy like Sri Lanka, this trend highlights the future importance of ICT/BPM integration within manufacturing and logistics to maintain global competitiveness.

Read more →

📈 SLASSCOM Propels 25 Startups to Global IIT Madras Program

SLASSCOM has selected 25 high-potential Sri Lankan startups for a fully-funded, six-week international residential entrepreneurship program at IIT Madras Pravartak, India. Supported by the High Commission of India, the initiative aims to scale local innovation into the global market. • Program Details: Titled "Mastering the Startup Journey," the residency runs from 2 February to 14 March 2026. It focuses on strategy, product-market fit, and internationalization within India’s vast investor ecosystem. • Sector Diversity: The cohort represents a broad spectrum of the ICT/BPM and advanced manufacturing sectors, including AI, automation, health-tech, and renewable energy. • Strategic Impact: Part of a broader bilateral agreement, this follows the creation of 700 training slots for Sri Lankans to enhance national competitiveness and export-led growth. • Key Participants: Selected from over 100 applicants, the group includes startups such as SpectrifyAI, Volfpack Energy, and MediMan Life, highlighting the country's diversifying tech landscape. This initiative underscores SLASSCOM's goal of positioning Sri Lanka as a global innovation hub by fostering cross-border collaboration and entrepreneurial capacity.

Read more →

Sustainability, ESG & Corporate Responsibility

(44)

HNB & David Pieris Solar Partner to Boost Renewable Energy 📈

David Pieris Renewable Energy (DPRE) and Hatton National Bank (HNB) have signed a strategic MoU to provide specialized financing for solar energy adoption across Sri Lanka. • Financial Terms: For the domestic sector, loan values range from Rs. 500,000 to Rs. 7,000,000. Commercial & Industrial (C&I) project financing will be structured based on individual requirements. • Repayment: Loans feature a tenure of up to seven years with competitive, flexible interest rates based on the repayment period. • Strategic Impact: The partnership leverages DPRE’s technical expertise and HNB’s banking network to accelerate the transition to sustainable power for households and businesses. • National Goals: This initiative supports Sri Lanka’s target of 70% renewable energy generation by 2030 and achieving carbon net-zero by 2050.

Read more →

### Noritake Lanka & Regen Renewables Partner for 350 kWh Solar Project 📈

Regen Renewables Ltd has signed a strategic agreement with Noritake Lanka Porcelain Ltd to implement a solar power project at its Pannala manufacturing facility, advancing sustainable industrial growth in Sri Lanka. • Project Scope: Development of a 350 kWh solar power system designed to integrate clean energy into large-scale industrial operations. • Energy Output: Expected to generate approximately 448,680 kWh of clean energy annually. • Environmental Impact: Estimated reduction of 340 metric tons of carbon dioxide emissions per year, supporting Sri Lanka’s climate action goals and NDC targets. • Sector Synergy: Combines Regen’s 13+ years of expertise (80 MW installed capacity) with Noritake’s position as a pioneering porcelain tableware manufacturer. • Economic Context: Highlights the role of the renewable energy and manufacturing sectors in driving a low-carbon transition and enhancing industrial sustainability. Based on official partnership announcements. ---

Read more →

PIM Green Digital Summit 2026: Bridging Sustainability & Tech 📈

The Postgraduate Institute of Management (PIM) will host the PIM Green Digital Summit 2026 this Thursday, February 26. The forum aims to integrate digital transformation with sustainable business practices to navigate global economic complexities. • Event Focus: A premier platform for business leaders and academics to explore how sustainability and digital tools drive value creation in a low-carbon future. • Strategic Goal: Aligning with PIM’s "Business School for the New World" vision to develop leaders capable of managing disruption through ICT/BPM and green strategies. • Key Stakeholders: PIM has a massive footprint in Sri Lanka’s professional landscape, having produced over 350 CEOs and 30,000+ trained professionals. • Distinguished Speakers: Led by Director Dr. Asanga Ranasinghe and organized by Tharindu Ameresekere. Keynote contributors include: • Dr. Ravi Fernando (Sustainability Specialist) • Channa de Silva (LankaPay CEO) • Sandun Hapugoda (Mastercard Country Manager) • Impact: The summit focuses on practical applications of data and platforms to build digitally enabled organizations, essential for long-term employment and national economic competitiveness.

Read more →

## 📈 Hayleys Solar Powers Poultry Sector with 4 MW Installation

Hayleys Solar has successfully completed a large-scale 4,036 kW (4.04 MW) solar PV project for Pussalla Meat Producers, marking a significant shift toward renewable energy within Sri Lanka's livestock and poultry industry. • Project Scope: The installation spans six strategic farm locations, including Ganewatta, Hiripitiya, Mangalaeliya, Mahakumbukkadawala, Dompe, and Nagawilluwa. • Operational Impact: Designed to support energy-intensive operations across the entire value chain—from breeding and feed production to processing—enhancing long-term cost sustainability and reliability. • Environmental Contribution: The project is projected to reduce annual carbon emissions by approximately 3.39 million tonnes, aligning with national sustainability goals. • Strategic Importance: This collaboration highlights the growing trend of renewable energy adoption in the agriculture and food processing sectors to ensure business continuity amidst fluctuating energy costs.

Read more →

MAS Femography and Selyn Foundation Expand #BleedGood Initiative for 2026 📈

• Strategic Partnership: MAS Femography (FemTech) and the Selyn Foundation have renewed their collaboration to combat period poverty in Sri Lanka through the #BleedGood movement, focusing on women’s well-being and climate-conscious menstrual dignity. • Core Objectives: The 2026 initiative utilizes a four-part model involving the distribution of medical-grade reusable apparel solutions, hygiene education by health practitioners, male advocacy sessions, and climate impact awareness. • Economic & Social Impact: • Focused on reducing long-term costs for women and girls, addressing "unmet needs" exacerbated by Sri Lanka’s recent economic challenges. • Promotes sustainability by transitioning to reusable products, reducing environmental harm compared to disposable alternatives. • Features a robust monitoring framework to inform national policymaking on menstrual equity. • Sector Leadership: Leveraging MAS’s expertise in manufacturing science-backed solutions for menstruation and menopause, the program has evolved from a 2020 crisis response into a multi-stakeholder movement. • Global Footprint: Beyond Sri Lanka, the initiative is piloting programs in Afghanistan and Bangladesh, aiming to set global standards for the apparel & textiles sector in humanitarian contexts.

Read more →

Global Expert Calls for Transformation of Sri Lankan Capitalism Through Impact Investing 📈

The first-ever Lanka Impact Investment Summit 2026 highlighted a shift toward "activating the invisible heart of the market," urging Sri Lanka to evolve its financial ecosystem beyond traditional models. • Investment Growth: Japan’s impact investment assets surged from US$ 200 Mn in 2016 to US$ 115 Bn in 2024, providing a blueprint for rapid scale-up in emerging markets. • Ecosystem Development: Success depends on coordination between government, finance, and civil society. Japan successfully unlocked US$ 1 Bn annually from dormant bank accounts for social investment via legislative reform. • Strategic Focus: The summit emphasized that impact investing is vital for addressing social challenges—such as aging populations and fiscal deficits—that government funding alone cannot solve. • Opportunities for Sri Lanka: Experts urged the local financial services sector and ICT/BPM social innovators to collaborate with the global GSG network (spanning 50+ countries) to mobilize private capital for development. • Global Alignment: Recent regulatory shifts, including those in JICA, are now enabling greater private capital mobilization, offering Sri Lanka a pathway to integrate into the global impact economy.

Read more →

Illegal Construction of Jaffna Cricket Stadium on Mandaitivu Island Halted by WNPS Demands 📉

The Wildlife and Nature Protection Society (WNPS) has issued a strong condemnation against Sri Lanka Cricket (SLC) for commencing construction of the proposed Jaffna International Cricket Stadium without mandatory legal approvals. • Legal Violations: Construction began without an Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA), violating the National Environmental Act No. 47 of 1980. • Environmental Sensitivity: The site on Mandaitivu Island comprises critical ecosystems including mangroves, seagrass beds, and coastal wetlands near the Mandaitivu Mangrove Reserved Forest. • Economic & Climate Risks: • The area is a natural flood-retention zone (flooded in 2012, 2017, and 2025); the project is flagged as a potentially "wasteful investment" due to high maintenance and flood risks. • Threatens the livelihoods of local families dependent on small-scale fisheries sustained by these habitats. • Current Status: Despite formal notifications to regulatory authorities regarding earth-moving machinery on-site, no decisive action has been taken to halt the "unlawful" activities. WNPS emphasizes that large-scale development in this region weakens natural coastal defenses and sets a dangerous precedent for institutional transparency and environmental law adherence.

Read more →

Abans Environmental Services Achieves Industry-First Ethical Benchmark 📈

Abans Environmental Services Ltd. has become the first company in Sri Lanka’s facility services sector to achieve SEDEX membership and align with the SMETA audit framework. This milestone, verified by Control Union, establishes a new national standard for ethical and sustainable operations. • Key Achievement: First Sri Lankan facility services provider to meet global SMETA standards for labor, health and safety, environment, and business ethics. • Company Profile: Part of the diversified Abans Group (est. 1985), providing janitorial, pest control, and facility management across commercial and public sectors. • Workforce Impact: Strengthens governance and workplace safety for the sector’s largest technology-enabled workforce, promoting fair labor practices and employee welfare. • Strategic Value: Enhances transparency and ESG compliance, aligning Sri Lankan services with global supply chain expectations for international partners.

Read more →

Marks and Spencer Donates Rs. 4.7 Mn to ‘Rebuilding Sri Lanka’ Fund 📈

Global retailer Marks and Spencer has contributed to national recovery efforts through a significant financial donation to the Government’s dedicated fund. • Contribution Details: A total of nearly Rs. 4.7 million was donated to the ‘Rebuilding Sri Lanka’ Fund. • Key Representatives: The donation was formalized at the Presidential Secretariat by Marks and Spencer General Manager Rifat Arman and Regional Manager Shabry Aher. • Official Handover: The cheque was received by the Secretary to the President, Dr. Nandika Sanath Kumanayake, in the presence of senior company officials. • Context: This move underscores the involvement of the apparel & retail sector in supporting national stabilization and development initiatives during the recovery phase.

Read more →

Policy Focus: "Clean Sri Lanka" vs. Street Economy 📈

The Clean Sri Lanka initiative, launched in early 2025 with an allocated budget of Rs. 6,500 Mn for 2026, faces a critical junction between environmental goals and the survival of the informal retail sector. Recent enforcement in Nuwara Eliya and Kandy highlights the tension between urban "beautification" and the livelihoods of low-income vendors. • Overall Economic Context • The program aims for a holistic transformation of social, environmental, and ethical standards across all sectors. • Budget 2026 emphasizes "Clean Sri Lanka" as a pillar for boosting tourism and "green jobs." • Despite a 5% GDP growth and stabilized inflation, essential costs remain high for daily wage earners. • Sectoral Impact: Street Trading & Retail • Pavement vendors in Nuwara Eliya report being cleared ahead of high-profile visits and the upcoming "April Season." • In Kandy, a total ban on street vending was implemented on Jan 1, 2026, to ensure "public convenience." • Vendors offer essential goods (apparel, electronics, vegetables) at fractions of mall prices (e.g., torches at Rs. 2,000 vs Rs. 8,000), serving as a vital "poverty buffer." • Key Concerns & Observations • Informal economy: Risk of excluding small-time traders in favor of large Colombo-based businesses during peak tourist seasons. • Livelihoods: Sellers note that the "cleanliness" drive often equates their presence with "litter," despite the lack of alternative trading infrastructure. • Diversification: Critics urge linking poverty eradication to the initiative to ensure "Clean Sri Lanka" does not marginalize the working class.

Read more →

## 📈 Atlas SipSavi Initiative Combats School Dropout Rates

The Atlas SipSavi Christmas Promise has successfully concluded a nationwide intervention to support education, addressing the critical issue of approximately 22,000 children dropping out of school annually in Sri Lanka due to economic hardships. • Core Impact: The initiative operated on a "1-for-1" model where Atlas matched every book donated by the public with a new book, effectively doubling the total educational aid distributed to underfunded schools. • Strategic Intervention: The project targeted schools in regions facing severe economic challenges to provide essential learning materials, which often act as a primary barrier to education for low-income families. • Socio-Economic Goal: Beyond material aid, the program serves as a direct effort to reduce the national dropout rate and support the education sector, ensuring that financial constraints do not impede a child's right to schooling. • Community Engagement: The initiative leveraged a collective social model, mobilizing individuals and families to contribute to the long-term resilience of the country's future workforce through the stationery and educational supplies industry. _Summary based on official project report and provisional impact data._ ---

Read more →

IFAC President Commends CA Sri Lanka’s Leadership in Sustainable Finance 📈

• Overall Leadership: The International Federation of Accountants (IFAC) President, Jean Bouquot, lauded the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) for its proactive role in adopting global standards, positioning the nation as a model for corporate accountability. • Sustainability Reporting: Key focus was placed on the implementation of SLFRS S1 and S2 (adapted from IFRS Sustainability Disclosure Standards). This move is aimed at reducing regulatory fragmentation and enhancing Sri Lanka’s sustainable finance ecosystem. • Strategic Standards: A call to action was issued for the local profession to adopt the ISSA 5000 assurance standard to ensure high-quality, consistent sustainability disclosures and maintain market competitiveness against non-professionals. • Digital Transformation: The shift from "scorekeeping to strategy" via AI was highlighted. Professionals were urged to enhance digital literacy and address risks such as cybersecurity and bias to redefine the role of the accountancy sector in the digital age. • Partnerships: The 50-year partnership between CA Sri Lanka and IFAC remains a pillar for economic growth and ethical integrity, supported by collaborations with government and donor agencies to build expertise in both public and private sectors.

Read more →

Economic News

(73)

## Apparel Sector Targets US$ 5.5 Bn Export Revenue in 2026 📈

Sri Lanka’s apparel & textile industry is projected to undergo a "major transformation" this year, with authorities forecasting a strategic rebound despite a slow start in January. • Overall Targets & Growth: The sector aims for US$ 5.5 Bn in export revenue for 2026. This follows a solid 2025 performance, where exports grew by 5.34% YoY, totaling US$ 4.91 Bn. • Market Access & Trade Concessions: United Kingdom: Zero tariffs on more garments under liberalised rules of origin via the Developing Countries Trading Scheme (DCTS). United States: Significant tariff reduction from 20% to 10% expected to boost competitiveness. European Union: Continued leverage of the GSP+ facility to navigate high price sensitivity. • Short-term Performance & Outlook: January 2026: A temporary setback saw exports decline 2.82% YoY to US$ 447.25 Mn, primarily due to lower shipments to the US and EU. Strategy: The EDB expects a February rebound, focusing on a shift toward higher-value products to mitigate global demand volatility and sustain long-term growth.

Read more →

### Trade Policy Shift Vital for Sri Lanka’s Growth Transition 📈

A disciplined transition from economic stabilization to structural growth is essential to avoid "reform fatigue," according to economist Talal Rafi at the Softlogic Stockbrokers Investor Forum 2026. • Macroeconomic Recovery Highlights: Debt-to-GDP reduced from 128% to nearly 100%. Interest payments as a % of revenue dropped from 80% to approximately 50%. Gross financing needs declined from 34% to 20% of GDP. Foreign reserves projected to rise from US$ 6.8 Bn to US$ 8.8 Bn by year-end 2026. • Growth Outlook & Targets: IMF growth projections: 2.9% for 2026 and 3.1% for 2027. Shift required from consumption-led recovery to productivity-driven growth. Resumption of bilateral debt repayments in 2028 will add ~US$ 1 Bn annually to obligations. • Strategic Sector Opportunities: Renewable Energy: Capitalizing on global demand for green power and data centers. Logistics & Shipping: Leveraging strategic maritime routes and integration with Southern India. ICT/BPM: Expanding IT-enabled services and technology adoption. Tourism: Essential for sustained external sector strength and diversification. • Key Risks & Challenges: Potential US$ 700 Mn impact on external balances due to import widening and reconstruction. Risks of fiscal slippage, political cycles, and global commodity volatility. Need for urgent reforms in State-Owned Enterprises (SOEs), labor markets, and land regulation. _Summary based on forum proceedings and provisional economic projections._

Read more →

📈 Strong Start for Sri Lankan Exports in 2026

Sri Lanka’s export sector recorded a robust 13.71% YoY growth in January 2026, with total earnings reaching US$ 1,532.6 Mn. The performance reflects a strong recovery in global demand and a strategic shift toward a knowledge-based economy. • Overall Figures • Total Exports: US$ 1,532.6 Mn (+13.71%) • Merchandise Exports: US$ 1,165.02 Mn (+10.66%) • Services Exports (Est.): US$ 367.55 Mn (+24.59%) • Sector Breakdowns • Tea: Earned US$ 121.84 Mn (+8.11%), with significant growth in the Turkish market (+120.95%). • Coconut Products: Surged by 30.69%, driven by high demand for coconut oil and activated carbon. • ICT/BPM: A standout performer in services, jumping 60.21% to US$ 177.83 Mn. • Electrical & Electronics: Remarkable 50.79% growth due to insulated wires and cables. • Apparel & Textiles: Experienced a slight dip of 2.82%, totaling US$ 447.25 Mn amid slower US/EU demand. • Top Markets & Regions • USA: Remains the largest buyer (US$ 257.85 Mn), despite a marginal 0.9% decline. • India: Now the 2nd largest destination, growing 38.67% to US$ 113.57 Mn. • European Union: Grew 12.27% overall, led by strong performance in Italy (+25.27%). _Note: Based on provisional data from Sri Lanka Customs and EDB estimates._

Read more →

IMF: Sri Lanka Must Transition from Stabilization to Economic Transformation 📈

The IMF Resident Representative, Dr. Martha Woldemichael, emphasized at the Softlogic Stockbrokers Investor Forum that while recovery is a "success story," it remains fragile and requires sustained reform momentum to improve national living standards. • Economic Performance & Targets Real GDP grew by 5% in 2024 (following a 4.8% average contraction in 2022-2023). Inflation fell to 2.3% YoY as of January 2025; Reserves stood at US$ 6.8 Bn at year-end 2024. Tax Revenue increased significantly from 7.3% of GDP in 2022 to 12.4% in 2024. EFF Program: 4 out of 8 reviews completed with approx. US$ 1.74 Bn disbursed to date. • Key Pillars for Transformation Trade & Investment: Focus on trade liberalization, reducing tariffs, and streamlining customs to integrate into global supply chains. Digitalization: Accelerating digital tools in tax administration and public services to reduce corruption. Labor Market: Reforms to increase flexibility and boost female labor force participation to drive growth. Sector Focus: Strengthening tourism through sustainability and enhancing infrastructure connectivity. • Governance & Stability Emphasis on Central Bank independence, fiscal credibility, and rebuilding buffers to absorb future shocks. Debt restructuring is nearing completion, aiming for long-term sustainability. Social safety nets are prioritized, especially as recent natural disasters have put 10% of the population at risk of poverty.

Read more →

Sri Lanka’s Data Centre Ambitions: A Cost-Benefit Reality Check 📈

• Overall Investment: The government has proposed a data centre hub, allocating Rs. 500 million (US$ 1.6 million) in the 2026 budget. However, critics highlight this is significantly lower than regional benchmarks, such as Vietnam’s average construction cost of US$ 6.9 million per megawatt. • Current Infrastructure: Sri Lanka currently operates six Tier III data centres serving the domestic market. Transitioning to Tier IV (99.995% uptime) is deemed unfeasible for at least two years until electricity sector reforms are finalized to ensure power isolation and redundancy. • Economic Concerns & Risks: • Employment: High-tech data centres are not major job creators; for example, Bangladesh’s Tier IV facility created only 69 jobs. • Utility Costs: Significant resource consumption is noted, including 2 million liters of water required for some facilities, presenting high opportunity costs for other sectors. • Sustainability & Obsolescence: Concerns exist regarding silicon-based architecture becoming obsolete with future shifts toward quantum or biological computing, potentially leaving current investments stranded. • Comparison with Vietnam: Vietnam’s more developed ICT landscape includes 34 active data centres and a US$ 38.4 billion National Data Development Fund, highlighting the significant scale of investment required to compete as a regional hub.

Read more →

### Sri Lanka’s Agriculture: From Welfare to Strategic Industrial Engine 📈

• The Shift: The sector must transition from "survival politics" to a long-term industrial strategy. Historically treated as peripheral, agriculture is now positioned as a strategic economic driver rather than a welfare sector. • Core Requirements: To achieve national transformation, the report identifies five critical pillars: Ten-year policy stability with bipartisan commitment. Structured agricultural financing through state and private banks. Integration of mechanization and agri-technology. Export-oriented value addition strategies. Transparent deployment of World Bank and ADB funding. • Private Sector Success: Entities like the Araliya Rice and Ratna Group serve as proof of concept. Their vertical integration and industrial-scale processing demonstrate that agriculture can generate significant wealth and employment when managed as a serious enterprise. • Food Security & Exports: Beyond individual success, the goal is to build a resilient national food bank and position Sri Lanka as a competitive exporter in regional markets. • Governance: Multilateral grants must be used to build sustainable production ecosystems rather than isolated projects. The focus is on institutional accountability and measurable productivity benchmarks to ensure long-term food security.

Read more →

Sri Lanka’s National Inflation Dips to 2.4% in January 2026 📈

Sri Lanka's headline inflation, measured by the National Consumer Price Index (NCPI), slowed to 2.4% in January 2026, down from 2.9% in December 2025. This moderation reflects a continued easing in price pressures across the island. • Overall Inflation: Decreased to 2.4% (YoY) from the 2.9% recorded in the previous month. • Food Sector: Inflation in the food category saw a significant decline, dropping to 3.4% in January 2026 compared to 4.4% in December 2025. • Non-Food Sector: Year-on-Year inflation for the non-food group remained stable and unchanged at 1.6%. The data, released by the Department of Census and Statistics, indicates a cooling trend driven primarily by the food sector, while non-food costs—relevant to transport and utilities—remain steady. This provides a stable backdrop for national cost of living and monetary policy considerations. _Source: Department of Census and Statistics (Provisional)_

Read more →

## Treasury Accelerates Reform Agenda for 2026 📈

Treasury Secretary Dr. Harshana Suriyapperuma has announced a major legislative push to strengthen fiscal discipline and investor confidence, with over 20 new laws under review to be implemented this year. • Legislative Overhaul: Key focus on the State-Owned Enterprises (SOE) Act, new insolvency laws for business restructuring, and anti-corruption measures to prevent revenue leakages. • Financial Stability: The Treasury has settled Rs. 45 Bn in long-standing outstanding obligations to banks, contributing to a decline in non-performing loans (NPLs). • SME Support: A Rs. 95 Mn allocation for 2026 is being channeled via the banking sector, with Rs. 7 Mn already disbursed as collateral-free loans to young and women entrepreneurs. • Debt & Ratings: Risk premiums on International Sovereign Bonds (ISBs) and domestic Treasury Bills are declining. The government aims for credit rating improvements to regain access to lower-cost international capital. • Growth & Trade: Target medium-term GDP growth is set at 7%. The government is actively pursuing new Free Trade Agreements (FTAs) to leverage Sri Lanka’s maritime hub potential. • Fiscal Discipline: The 2026 Budget was presented without any additional borrowing, reflecting a shift toward structural revenue increases and zero tolerance for corruption. _Source: Treasury Secretariat (Provisional Data)_ ---

Read more →

## MSME Financing: Systemic Reforms Critical for Investability 📈

The UNDP and industry experts at the Lanka Impact Investment Summit emphasized that Sri Lanka’s financing gap is a structural issue of "enterprise readiness" rather than a lack of liquidity. Following the twin shocks of the 2022 crisis and Cyclone Ditwah, shifting from recovery to institutional investability is now a national priority. • Economic Impact & Vulnerability MSMEs account for 2/3 of Sri Lanka's employment and over 50% of GDP. Recent RAPIDA assessments show 93% of affected communities reported livelihood losses post-cyclone. 40% of cyclone debris originated from unauthorized structures, highlighting a critical lack of regulatory compliance. • Barriers to Capital Readiness Governance & Transparency: Many firms lack audited statements, tax compliance, and basic cash-flow visibility. Financial Discipline: Experts warned that taking on debt without structured systems leads to collapse rather than growth. Trust Deficit: Entrepreneurs often mistrust equity investors, fearing loss of control, and prefer informal debt. • Strategic Outlook Global impact investment assets reached US$ 1.571 Trillion in 2024, growing at a 21% CAGR. To tap into this, MSMEs must focus on four pillars: governance, financial discipline, data reporting, and standards. The UNDP is exploring a support package combining risk guarantees with capacity building to "crowd in" private capital.

Read more →

SL Customs Revenue Hits 96% of February Target in Just 19 Days 📈

Sri Lanka Customs has recorded a strong start to 2026, driven by robust import momentum and enhanced enforcement measures. • Revenue Performance: Collected Rs. 159.5 Bn by February 19, achieving 96% of the Rs. 165.9 Bn monthly target. This follows a high-performing January where revenue exceeded targets by 45% (Rs. 72.3 Bn). • Annual Progress: Within the first 50 days of 2026, Customs has secured 17.8% of its full-year target of Rs. 2,207 Bn. • Target Context: The 2026 goal is 13.5% lower than the record Rs. 2,551 Bn collected in 2025, primarily due to an anticipated decline in vehicle imports, a major historical revenue driver. • Operational Drivers: Success is attributed to tighter enforcement, improved valuation, and a rebound in import demand. Logistics have stabilized following the acceleration of container clearance and recovery from November 2025 weather disruptions. • Economic Impact: The revenue surge supports macroeconomic stabilisation and fiscal space, though analysts note future performance depends on the sustainability of import dynamics and compliance. _Data based on official Customs revenue reports as of Feb 2026._

Read more →

Cabinet Approves Liquidation of Shrama Vasana Fund by June 2026 📉

The Cabinet of Ministers has greenlit the liquidation of the Shrama Vasana Fund effective 30 June 2026, as part of a broader move to rationalize State-owned non-commercial institutions. • Core Decision: The fund, established under Act No. 12 of 1998 to support private and semi-Government sector employees, will be dissolved following recommendations to remove direct State mediation in non-commercial entities. • Implementation: The resolution, presented by Labour Minister Dr. Anil Jayantha Fernando, adheres to the Finance Act, No. 38 of 1971. The Labour Ministry will directly oversee and deliver essential services and welfare previously managed by the fund. • Continuity: An action plan developed with stakeholder input ensures that welfare support for beneficiaries remains uninterrupted during the transition. • National Impact: The move aims to streamline institutional structures and improve the efficiency of the Labour Ministry’s service delivery to the private sector workforce. _Summary based on Cabinet approval and provisional Labour Ministry guidelines._

Read more →

Credit Card Debt Hits Rs. 175.7 Bn as Consumer Spending Rises 📈

• Overall Figures: Total outstanding credit card balances reached Rs. 175.71 Bn at end-2025, marking a significant 11.24% YoY increase (up by Rs. 17.75 Bn from Rs. 158 Bn in 2024). • Card Segments: • Globally accepted cards: Accounted for the majority of debt at Rs. 136.22 Bn, up from Rs. 123.11 Bn in 2024. • Locally accepted cards: Recorded Rs. 39.49 Bn in outstanding debt, compared to Rs. 34.85 Bn a year earlier. • Active Cards: The total number of active credit cards rose to 2,166,186 by end-December 2025 (up from 2.01 million). This growth was dominated by globally accepted cards, which totaled 2.15 million. • Key Trend: The data highlights a sustained reliance on card-based payments, signaling increased credit usage and consumption levels across the economy.

Read more →

Product & Service Launches / Business Expansion

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.

Read more →

**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).

Read more →

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._

Read more →

Uncategorized

(10)

## ⛈️ 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. 📈 ---

Read more →

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.

Read more →

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.

Read more →

### 🏛️ Restoring National History: A Strategic Investment for Sri Lanka

• Core Policy Proposal Policymakers and educators are urged to restore history to a central role in the education sector. The move aims to counter a perceived weakening of national consciousness and patriotism among the younger generation, viewing historical awareness as a "strategic national investment" rather than just an academic subject. • Economic & Social Implications A nation’s future is defined not only by its ICT/BPM progress or economic policies but by its collective memory. The data suggests that historical ignorance leads to fragmentation and vulnerability to external manipulation, which can undermine long-term national stability and sovereign development. • Key Historical Pillars Hydraulic Civilization: Lessons from King Parakramabahu’s water management highlight ancient "sustainable development" and ecological intelligence. Governance & Justice: Historical figures like King Elara and King Dutugemunu serve as models for the rule of law and ethical leadership. Ethical Foundations: The arrival of Buddhism is credited with shaping the nation's approach to social harmony and conflict resolution. • Global & Modern Context International Benchmarks: Success stories from Germany, Japan, and India show how national identity drives economic and scientific progress. Modern Resilience: Teaching recent history, including the defeat of terrorism and the 2004 Tsunami response, is vital for building a socially responsible and resilient citizenry. • Current Status Based on the published commentary, there is a "dire need" for curriculum reform to ensure the next generation understands that independence and freedoms were hard-won achievements, essential for preserving Sri Lanka's value systems against "erosion and corrosion."

Read more →

📈 9th Edition of Colomboscope Opens with ‘Rhythm Alliances’

Sri Lanka’s premier contemporary arts festival, Colomboscope, has launched its 2026 edition, positioning the island as a growing hub for art tourism and the creative economy. The 9th edition, titled ‘Rhythm Alliances’, brings together over 50 artists to explore sound as a tool for cultural expression and social resistance. • Scale & Reach: Featuring 50+ musicians, filmmakers, and choreographers. The festival includes 35 newly commissioned projects, emphasizing the role of the ICT/BPM and creative sectors in high-value cultural exports. • Economic Context: While the creative economy remains largely untapped in Sri Lanka, events like Colomboscope drive urban footfall and support local hospitality and retail sectors through interdisciplinary public programs. • Sector Highlights: • Traditional Arts: Focus on ritualistic drumming and healing rites as enduring forms of knowledge. • Sustainability: Venues like Soul Studio highlight the intersection of sustainable manufacturing and contemporary design. • Tourism: Positioning Colombo as a regional arts destination alongside global peers like the Sharjah Biennial to attract high-spending cultural travelers. • Key Venues: Programs are spread across 8 city locations, including Barefoot Gallery, BMICH, and Scope Cinemas, facilitating broad public access and community engagement. _Note: Based on inaugural reporting; economic impact figures typically follow post-festival assessments._

Read more →

OBITUARY: Media Professional Marian Candappa Passes Away 🕊️

• Industry Impact: Marian J. Rodrigo Candappa, a veteran of the Sri Lankan media landscape, has passed away. Her professional career was notably spent with major publishing houses Virakesari and Wijeya Newspapers, contributing to the country's Information & Media sector. • Community & Social Roles: Beyond her professional life, she was a prominent figure in civil society, holding active memberships in the Lions Club, the Colombo Chetty Association, and the Parish of Kotahena. • Final Rites: • The remains will lie at Lanka Florists, Punchi Borella, today (Feb 3) from 9:00 a.m. to 3:00 p.m. • Cremation is scheduled for 4:00 p.m. at the Old Crematorium, General Cemetery Kanatte. • Legacy: As the relict of the late Modestus Candappa, her passing marks the loss of a figure connected to the long-standing traditions of the Sri Lankan newspaper and printing industry.

Read more →

48th Navam Maha Perahera Bolsters Colombo’s Tourism Activity 📈

The 48th Annual Navam Maha Perahera of the Hunupitiya Gangaramaya Temple concluded yesterday in Colombo, serving as a significant driver for the capital's cultural tourism and activity economy. The two-day procession (Jan 31 – Feb 1) drew massive crowds, including high-profile state officials and foreign visitors, highlighting its role in the national tourism calendar. • Overall Impact: The event acts as a critical "growth lever" for Colombo’s urban economy during the first quarter, traditionally a high-traffic period for international arrivals. With Sri Lanka targeting 3 million tourists and US$ 4.30 Bn in revenue for 2026, such large-scale cultural events are vital for reaching these milestones. • Sector Highlights: • Tourism & Hospitality: Attracted thousands of foreign spectators, boosting occupancy for Colombo-based hotels and informal accommodation sectors. • Handicrafts & Traditional Arts: Provided a commercial platform for hundreds of traditional dancers, drummers, and artisans, supporting rural livelihoods through cultural preservation. • Transport & Services: High domestic and international footfall stimulated local transport and retail activity in the Western Province, the nation's primary economic hub. • Patronage: The event saw bipartisan attendance, including Prime Minister Dr. Harini Amarasuriya and former Presidents, signaling strong institutional support for the creative economy and religious heritage.

Read more →

Sri Lanka's Economic Resilience: The Case for Comprehensive Sex Education 📈

The recent focus on systemic gaps in Sri Lanka's education highlights a critical need for Comprehensive Sex Education (CSE) to safeguard social and economic stability. Addressing these gaps is framed as a long-term investment in human capital. • Systemic Gaps & Productivity: Taboos surrounding reproductive health contribute to school absenteeism (up to 50% in certain regions due to period poverty) and poor health outcomes, directly impacting future workforce participation. • Legal & Social Literacy: Education on consent and legal boundaries is vital to navigate power dynamics in Sri Lanka’s hierarchical society, aiming to reduce the rising cases of child abuse and youth HIV infections (104 cases in 2023). • Sector Impact: • Healthcare: Improved literacy reduces the economic burden of reproductive disorders and unplanned pregnancies. • Labour Force: Empowering the youth (approx. 5.2 Mn by 2032) with informed decision-making skills is essential for national development. • Provisional Data Highlights: • Only 0.4% of surveyed adolescents demonstrate satisfactory reproductive health knowledge. • 50% of households face period poverty, affecting female education and economic mobility. • CSE is recognized as a "cost-effective" intervention by the UNFPA to bridge the 30–35% stagnation in female labour force participation.

Read more →

📈 Sri Lanka: Addressing the Growing Crisis of Sexual Violence

A recent judicial decision dismissing an appeal by a man convicted of raping a 15-year-old girl has brought renewed focus to the rising incidence of sexual violence in Sri Lanka. The case highlights a systemic crisis where social silence often empowers offenders. • Overall Trends: Reports of sexual violence continue to rise across the country, with a high concentration of cases involving minors. A 2026 UN report highlights that a legacy of impunity and the failure to address harmful attitudes have led to a "climate of fear," with many cases remaining unreported due to social stigma. • Sector & Social Factors: • Education & Awareness: Lack of proper education on consent and gender equality is cited as a primary driver for dangerous misconceptions. • Social Influences: Factors compounding the crisis include substance abuse and exposure to violent content. • Impact on Human Capital: Trauma from survivors significantly hinders national employment and education outcomes, as victims face lifelong mental and emotional health challenges. • Global Comparison & Legal Gaps: • Singapore: Utilizes strict laws including long prison sentences, strokes of the cane, and professional reassessment of offenders before release. • Sri Lanka: Faces urgent calls for faster legal processes and stronger enforcement. Current legal obstacles include a 20-year statute of limitations and the lack of legal recognition for the rape of men (based on UN monitoring data). • Provisional Outlook: While the dismissal of recent appeals sends a message of zero tolerance, experts emphasize that prevention through community and religious leadership, along with parent-led education on boundaries, is essential for a sustainable solution.

Read more →

Headline: Heritage Tourism & The Ravana Legacy: A Multi-Billion Rupee Opportunity 📈

The Colombo Institute for Human Sciences (CIHS) recently explored the evolving role of Ravana, highlighting its transition from myth to a strategic asset in Sri Lanka’s cultural tourism and political landscape. • Overall Figures & Economic Impact • Sri Lanka welcomed a record 2.36 Mn tourists in 2025 (up 15.1% YoY), surpassing the 2018 peak. • Tourism earnings exceeded US$ 3.2 Bn for 2025, driven by a surge in high-value experiential travel. • The "Sri Ramayan Trails" project targets millions of pilgrims, leveraging AI and AR to monetize 50+ historical sites. • Sector & Market Breakdown • Top Market: India remains the undisputed leader with 531,511 arrivals in 2025 (22.5% share), growing by 27% YoY. • Heritage Tourism: A key growth driver; global markets are projected to reach US$ 641.64 Bn in 2025. • Tourism Diversification: Local narratives in Kandy and the Knuckles range are being "repackaged" as a consumable brand for the ICT/BPM and digital nomad segments. • Strategic Outlook • Scholars warn of "hegemonic" North Indian versions eclipsing local traditions, affecting how sites like Seetha Eliya are marketed. • The commercialization of the "Ravana" brand is seen as a stabilizing force for national sovereignty and foreign exchange recovery. _Summary based on 2025 SLTDA provisional data and CIHS academic proceedings._

Read more →

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._

Read more →

**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.

Read more →

**Industry & Sector News**

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

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

Read more →

**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._

Read more →

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

📈 Janashakthi Insurance Proposes 1:3 Share Split

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

Read more →

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._

Read more →

**Economic News** ### Reasoning The news text focuses on the **macroeconomic impact** of a major natural disaster (Cyclone Ditwah) on Sri Lanka’s national economy and its sovereign debt sustainability. * **Subject:** It centers on the **Debt Sustainability Analysis (DSA)**, GDP growth projections, and the International Monetary Fund (IMF) bailout program. * **Key Elements:** The article discusses fiscal policy, central bank positioning, and a debate among world-renowned economists (including Joseph Stiglitz) regarding **sovereign debt restructuring** and **solvency vs. liquidity** in a macroeconomic context. * **Impact:** The core theme is how an exogenous shock affects national economic indicators and government debt-repayment capacity, which falls squarely under **Category 3: Economic News**. While it mentions government decisions, it is not primarily about political stability (Politics) or specific laws (Regulatory). Similarly, while it discusses debt, it does so from a national macroeconomic perspective rather than a private investment or retail banking one.

### Cyclone Ditwah Shocks Economy: Debt Restructuring Under Fire 📈

The Central Bank of Sri Lanka (CBSL) maintains that 2026 GDP growth and debt sustainability remain on track despite the catastrophic impact of Cyclone Ditwah. However, a global coalition of 121 economists, led by Nobel laureate Joseph Stiglitz, warns that the current debt deal is inadequate to absorb this US$ 4.10 Bn exogenous shock. Economic & Sectoral Impact • Agriculture: US$ 814 Mn in direct damage to paddy, vegetables, and livestock; posing severe risks to food security. • Apparel & Manufacturing: Production and shipments delayed due to flooding and power outages affecting 30% of the grid. • Infrastructure: Total damage estimated at US$ 1.74 Bn (42% of total losses), disrupting vital ICT/BPM and logistics hubs. • Macro Outlook: GDP growth expected to trim by 0.5%–0.7% as 2.2 Mn people face displacement and livelihood losses. Debt & Fiscal Position • Sustainability: CBSL Governor indicates IMF targets may need "inevitable" revision, but rejects calls for debt suspension. • Relief Demands: Economists call for an immediate debt service pause and genuine "solvency relief" (principal haircuts) over simple cash-flow reprofiling. • Emergency Funding: IMF has approved US$ 206 Mn via the Rapid Financing Instrument (RFI) to bridge urgent balance-of-payment gaps. Key Figures • Total Damage: US$ 4.10 Bn (approx. 4% of GDP). • Inflation: CCPI accelerated to 2.3% in Jan 2026; annual average 2026 forecast adjusted to 3.3%. • Remittances: Projected to rise 10%–15% (US$ 8.80 Bn total) as the diaspora supports reconstruction.

Read more →

Market News **Next Step:**

📈 Gold Rallies Near US$ 5,600/oz Amid Global Tensions

Global precious metal prices hit unprecedented highs on Thursday as safe-haven demand intensified due to geopolitical uncertainty and economic shifts. • Overall Market Figures • Gold: Surged to a record US$ 5,591.61/oz, gaining over 10% this week. • Silver: Reached a peak of US$ 119.34/oz, up 60% year-to-date. • Platinum: Rose to US$ 2,723.40/oz, following a record high earlier in the week. • Local Impact & Prices • 24-Carat Gold: Trading at approximately Rs. 456,850 per 8 grams (pawn) in Sri Lanka, reflecting the global surge. • 22-Carat Gold: Priced at roughly Rs. 418,850 per 8 grams (pawn), a significant jump driven by currency factors and global demand. • Domestic Market: Local prices in the Colombo Pettah market have increased by roughly Rs. 12,000 per sovereign recently. • Key Drivers • Geopolitical friction between the U.S. and Iran and a splintering global trade system. • Central bank buying and the U.S. Fed’s decision to keep interest rates unchanged. • Significant portfolio allocations to physical gold by large institutional entities like Tether (10%–15%). • Sector & Industrial Risks • Apparel & Textiles and ICT/BPM: While gold acts as a hedge for inflation, the soaring price of silver (up 60%) poses a direct cost threat to the tech sector and green energy components. • Investment: Analysts suggest the "parabolic" rally may lead to a brief pullback, though fundamentals remain supportive for 2026.

Read more →

**Corporate News** ### Reasoning: While the news mentions a "wealth management business," the core of the announcement is a **corporate development** regarding Sampath Bank's structure and strategy. * **Corporate Strategy & Governance:** The decision was made by the **Board of Directors** and involves the creation/utilization of a **wholly owned subsidiary**, which is a significant change in corporate structure and strategy. * **Regulatory Clearance for Entities:** The focus is on the bank obtaining **regulatory approval** (CBSL and SEC) to operate a new business entity, rather than the launch of a specific consumer-facing product or the details of the service itself. * **Business Expansion:** Under the categorization guidelines, significant structural moves like establishing subsidiaries for new business segments fall under **Corporate News**, as they relate to how the corporation is managed and its long-term strategic direction.

Sampath Bank Receives CBSL Approval for Wealth Management Expansion 📈

• Banking Sector Update: Sampath Bank PLC has officially received the green light from the Central Bank of Sri Lanka (CBSL) to enter the wealth management industry. • Structural Setup: The bank plans to conduct these operations through a wholly owned subsidiary, marking a strategic move to diversify its financial service offerings beyond traditional banking. • Regulatory Roadmap: While CBSL approval is a major milestone, the commencement of operations is still subject to: • Obtaining regulatory clearance from the Securities and Exchange Commission (SEC) of Sri Lanka. • Finalizing other necessary statutory approvals. • Strategic Context: This move signals a push toward high-value financial services and capital market participation, aiming to capture growth in the investment management space. • Status: Currently in the preparatory stage; further details on the official launch will follow pending final clearances.

Read more →

To categorize this news article, I have analyzed the text based on its primary theme, entities involved, and the nature of the information provided. ### Reasoning Process: 1. **Main Subject:** The text discusses the intersection of **Artificial Intelligence** and **Taxation**, specifically how large corporations are using predictive technology to anticipate tax enforcement and legal shifts. 2. **Core Theme:** While it mentions AI (technology) and corporate strategy, the central focus is on **revenue mobilization**, **government tax policy**, **fiscal stability**, and the **macroeconomic risk** posed to state budgets (specifically mentioning the context of Sri Lanka's recovery). 3. **Category Evaluation:** * *Corporate News* is secondary, as the focus isn't on a specific company's earnings or merger. * *Regulatory & Policy News* is a strong contender because it discusses compliance and tax laws, but the article frames these as drivers of broad economic outcomes. * **Economic News** is the best fit because the article's ultimate concern is **National Revenue**, **GDP impact**, **fiscal policy**, and the **long-term stability of the economy** in the face of shifting taxpayer behavior. The mention of tax as a primary source of government funding for public services (healthcare, education) aligns directly with macroeconomic indicators and fiscal health. --- **Economic News**

📈 Future of Revenue: The Rise of Predictive Taxpayers

Artificial Intelligence is fundamentally shifting global taxation from a backward-looking system to one driven by future probability. Large corporations are now using predictive tools to anticipate tax enforcement, potentially undermining long-term revenue stability through "legal anticipation." • Key Shift in Compliance The traditional model of reacting to audits is being replaced by AI-driven forecasting. Firms now adjust investments and business structures based on predicted shifts in policy, public opinion, and enforcement trends before new laws are even passed. • Risks to the National Economy • Revenue Erosion: Assets and supply chains may be relocated as soon as reforms are hinted at, shrinking the tax base before legislation takes effect. • The Fairness Gap: A "two-speed" system is emerging. Large multinationals use expensive AI to navigate risks, while SMEs and individual taxpayers remain reactive, potentially eroding public trust in tax fairness. • Forecasting Instability: Historical data is becoming less reliable for state revenue projections as taxpayer behavior shifts based on rumors and signals. • Strategic Outlook for Sri Lanka While the domestic administration remains largely reactive, multinationals in Sri Lanka already utilize global predictive systems. To protect domestic revenue needed for recovery, the state must: • Develop institutional AI tools to identify avoidance patterns early. • Ensure clear, timely legislation to reduce speculative planning. • Strengthen international data-sharing to track cross-border tax shifts.

Read more →

Global & International Business **

Sri Lanka Faces New Tariff Threats Amid Shift to Asia 📈

Sri Lanka is navigating a precarious trade landscape as new 25% US tariffs target nations trading with Iran. The government is responding by fast-tracking trade diversification into Asian markets to mitigate dependency on traditional Western partners. • New Trade Risks & Tariffs The US has announced an immediate 25% tariff on countries doing business with Iran, threatening Sri Lanka’s single largest export market (approx. 25% of total exports). This follows a previously negotiated 20% tariff "shock" from early 2025, creating a potential double-blow for the apparel & textiles and tea sectors. Tea prices have already dipped at recent auctions due to the collapse of the Iranian Rial and heightening geopolitical pressure. • Sectoral Impacts & Diversification Tea: Iran remains a top 10 buyer; the industry faces severe risks if food exemptions are not clarified. Apparel & Textiles: High reliance on the US (US$ 3 Bn annual revenue) necessitates urgent market shifts. ICT/BPM: While services exports rose 2.79% in 2025, legal trade agreements (GATS+) are viewed as essential to protect private investors from "deal culture" risks. • Strategic Pivot to Asia Sri Lanka is prioritizing FTA negotiations with India, China, and ASEAN members (Thailand, Vietnam) to reduce "distant market" logistics costs. A specialist ministerial committee is currently reviewing all existing pacts to eliminate para-tariffs and streamline trade facilitation.

Read more →