## ⚖️ Legal Action Against Counterfeit Plumbing Products in Sri Lanka
The Colombo Chief Magistrate has commenced an inquiry following a CID investigation into the sale of counterfeit KITZ Corporation Japan products. The case highlights ongoing efforts to protect intellectual property within the local construction and hardware sectors. • Case Overview: Two hardware dealers are accused of selling duplicated plumbing items, misleading consumers by branding them as genuine Japanese KITZ products. • Authorized Representation: Elite Corporation, based in Messenger Street, testified as the sole authorized distributor for KITZ Japan in Sri Lanka. • Evidence: The CID produced seized items in court, which the authorized agent confirmed were fakes, contrasting them against original samples. • Legal Context: The Criminal Investigation Department’s (CID) Financial Fraud Unit is leading the prosecution to curb the circulation of sub-standard building materials that impact infrastructure quality. • Next Steps: The trial is set to continue on March 19, 2026.
⚡ No Electricity Tariff Change for Q1 2026
The Public Utilities Commission of Sri Lanka (PUCSL) has officially ruled out any revisions to electricity tariffs for the first quarter of 2026. This decision ensures price stability for consumers and industrial sectors through March. • CEB Procedural Failure: The decision follows the failure of the Ceylon Electricity Board (CEB) to submit a formal tariff revision proposal within the required regulatory timeframe. • Shortcomings Identified: Beyond the delay, the PUCSL noted significant deficiencies in the CEB's initial proposal. • Impracticality of Adjustments: The Commission determined that imposing a high-percentage tariff adjustment for the remainder of the quarter would be impractical, even if a revised submission were received now. • Economic Impact: Tariffs will remain at current levels, providing a predictable cost environment for manufacturing, apparel, and small businesses during the first three months of the year. Based on official PUCSL statements as of January 15, 2026.
📈 Revenue Agencies Unite to Combat Tax Evasion & Under-Invoicing
Sri Lanka Customs and the Inland Revenue Department (IRD) signed a landmark MoU on January 13, 2026, to launch joint investigations into import under-valuation and related tax leakages. • Strategic Collaboration: The agreement enables joint audits of declarations made by importers, targeting businesses that use third parties to evade tax liabilities. This initiative is coordinated by the Revenue Administration Reform and Modernisation Office. • Performance Milestones (2025): • Sri Lanka Customs: Achieved record revenue of over Rs. 2,415 Bn (surpassing the Rs. 2,115 Bn target by ~Rs. 300 Bn). • Inland Revenue Department: Collected a historic Rs. 2,203 Bn, exceeding its annual target by Rs. 33 Bn. • Addressing Structural Gaps: The move follows IMF Governance Diagnostic warnings regarding fragmented revenue institutions. The joint mechanism aims to reduce "siloed" operations that previously created opportunities for corruption and rent-seeking in customs valuation and tax assessments. • Modernization Goals: While digitization (e.g., ASYCUDA) has improved transparency, the government aims to further phase out manual processes and strengthen data-sharing to secure national fiscal targets.
⚠️ Regulatory Hurdle Threatens $ 12.75 Mn FDI Cable Car Project
Amber Adventures Ltd. has warned the Board of Investment (BOI) that its cable car project at Ambuluwawa is at risk due to "arbitrary" regulatory interference. • Investment Status: Out of a total approved FDI of US$ 12.75 Mn, approximately US$ 3.5 Mn has already been deployed. The investment was notably secured in 2022 during the height of Sri Lanka's economic crisis. • Regulatory Conflict: The Central Environmental Authority (CEA) suspended development on 9 January 2026, citing social media posts and unreported complaints. The company alleges this lacks legal basis, as the project holds approvals from over 12 state agencies, including the UDA, NBRO, and SLTDA. • Project Impact: • Structured as a Public-Private Partnership (PPP) under a Build-Operate-Transfer (BOT) model. • Total asset value exceeding Rs. 5 Bn to be transferred to the State free of charge after 13 years. • No financial risk to the government; all risks borne by the investor. • Technical & Legal Stand: The company denies environmental damage, noting that NBRO confirmed site stability post-Cyclone Ditwah. A 2024 Court of Appeal ruling previously found local obstruction to be "mala fide." • Outlook: Amber Adventures is currently evaluating legal avenues for investment recovery and restitution of damages, warning that such "harassment" undermines national investor protection and regulatory certainty. Based on official company statements.
⚖️ Supreme Court Affirms State Liability in Jacobe Resources Arbitration Case
The Supreme Court of Sri Lanka has dismissed an appeal by the Inspector General of Police (IGP), upholding a 2019 arbitration award and subsequent Commercial High Court judgment in favor of Jacobe Resources International Singapore Ltd. • Case Background: The dispute involved breaches of two contracts by the Sri Lankan State. A majority arbitral tribunal, led by former Chief Justice G.P.S. de Silva, originally ruled in 2019 that the contracts were breached, entitling the company to damages. • Legal Ruling: The Supreme Court (Justices Mahinda Samayawardhena and Sampath Wijeratne) refused the IGP’s petition to set aside the High Court's enforcement of the award, effectively confirming the State’s liability. • Financial Implications: The judgment enforces the payment of: • Damages for contract breaches. • Legal interest calculated from 2014. • Full costs of the arbitration proceedings. • Significance: This ruling reinforces the enforcement of international arbitration awards in Sri Lanka and underscores the accountability of state institutions in commercial contractual obligations.
📈 Road Safety: AA Ceylon Advocates for Mandatory Vehicle Testing
The Automobile Association of Ceylon (AA Ceylon), supported by the FIA and UN, has launched a high-level initiative to address rising fatal accidents caused by technical failures in Sri Lanka. • The Current Gap: Out of over 8 million registered vehicles in Sri Lanka, currently less than 20% (only heavy vehicles) are subject to compulsory roadworthiness tests. • Key Concern: Many accidents linked to technical malfunctions go unreported due to private insurance settlements, masking the true scale of the safety crisis. • The Proposal: AA Ceylon has submitted a formal proposal to President Anura Kumara Dissanayake and relevant ministries for a low-cost, mandatory testing framework for all vehicle classes, aligning Sri Lanka with international safety standards. • Economic & Social Impact: The initiative, partnered with the Lions Club, seeks to reduce the burden on the national healthcare system (Accident Service) and improve overall road safety for all citizens.
📈 Why Sri Lanka’s 2005 Tourism Act Remains Vital for Stability
The local hospitality sector advocates for refining rather than repealing the Tourism Act No. 38 of 2005, emphasizing its role in sustained growth and investor confidence over the last two decades. • Governance Framework: The Act established specialized institutions including the Sri Lanka Tourism Development Authority (SLTDA) and the Sri Lanka Institute of Tourism and Hotel Management (SLITHM). This separation of functions has historically reduced political interference and professionalized regulation. • Financial Trust: Industry cooperation regarding the one percent turnover levy is strictly tied to the Act’s guarantees of industry representation and transparent fund usage. Any repeal risks undermining private-sector trust. • Proposed Reforms: Industry leaders support limited amalgamation, such as merging the Promotion Bureau and the Convention Bureau, provided that: Leisure and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors maintain separate budget lines. Private-sector leadership in marketing is preserved. • Sector Priorities: Recommendations focus on digitizing approvals and aligning training with modern human capital needs rather than centralizing governance. • Strategic Outlook: With tourism serving as a critical economic pillar, stakeholders argue that institutional stability is essential to maintain international branding and avoid reversing decades of progress. _Note: Summary based on industry veteran perspectives as of January 2026._
### 📈 Administration Over Policy: Reforming Sri Lanka’s Tax System
The current debate in Sri Lanka emphasizes that tax administration, rather than further policy changes, is now the primary driver for revenue growth and taxpayer compliance. While policy sets the rules, administration defines the lived experience of citizens and businesses. Core Insights • Experience vs. Rules: Public resistance stems less from tax rates and more from friction in the process—queues, complex forms, and inconsistent enforcement. • Trust as an Asset: Revenue collection depends on institutional trust. Opaque or intimidating administration pushes taxpayers toward the informal economy, while clarity fosters voluntary compliance. • Economic Impact: Frequent policy shifts (rate hikes/exemption cuts) directly hurt household incomes. Administrative reforms—like better call centers and digital portals—increase revenue without adding financial pain. Sector & Strategic Focus • SMEs & Professionals: These groups struggle with uncertainty and fear of penalties for honest mistakes. Service-oriented support is critical for their formalization. • ICT/BPM & Digitalization: Digitalizing the tax net (e.g., e-invoicing, RAMIS upgrades) is a key development tool, especially for the youth entering the workforce. • Apparel & Textiles: Streamlined administrative processes (like faster VAT refunds) are essential to maintain the cash flow of export-oriented sectors. Strategic Path Forward • Shifting the organizational mindset from "control" to "service" can produce outsized gains in revenue. • Strengthening internal coordination and standardizing procedures are prioritized over new legislation. • Effective administration serves as a social contract, transforming tax from "extraction" into "civic participation."
## TIN Now Mandatory for Vehicle Registrations in Sri Lanka 📈
Sri Lanka’s Department of Motor Traffic (DMT) has officially implemented a significant policy shift effective January 5, 2026, making the Taxpayer Identification Number (TIN) compulsory for key vehicular transactions. This move aims to bolster tax compliance and formalize the economy by linking asset ownership directly to the national tax system. • Core Requirement The mandate applies to all new vehicle registrations and ownership transfers. Applicants must provide their TIN alongside their NIC (for individuals) or Business Registration Number (for corporates) to process these transactions. • Target Demographics Under Inland Revenue Department (IRD) guidelines, a TIN is required or highly encouraged for: All individuals aged 18 years and above. All income earners (employment, business, or investment). Professionals (lawyers, doctors, engineers) and self-employed persons. Importers, exporters, and VAT-registered entities. • Exempted Categories To protect low-income groups and the agricultural sector, the following are currently exempt: Motorcycles and Three-wheelers. Tractors, Hand tractors, and Tractor trailers. • Impact on Owners Existing Owners: Those not currently selling or transferring their vehicles are not immediately affected. Future Transactions: Any future transfer of ownership will remain blocked until a valid TIN is provided. Business Sector: Vehicle dealers, leasing companies, and finance firms must now integrate TIN verification into their standard compliance workflows. • Strategic Goals This reform aligns with broader IMF-backed fiscal reforms to broaden the tax base and enhance digital governance. It allows the IRD to identify undisclosed wealth by cross-referencing high-value asset purchases with declared income profiles.
📈 Blueprint for AI-Powered Tax Digitalisation in Sri Lanka
Sri Lanka is eyeing a radical fiscal transformation inspired by the UK’s HMRC and the UAE’s Federal Tax Authority. The proposed blueprint shifts from paper-based compliance to a real-time, AI-driven revenue system to meet IMF targets and bridge the significant national tax gap. • Strategic Pillars & Technology RAMIS 3.0 Upgrade: Transitioning the system into a dynamic compliance engine using APIs for structured data submission. Unified Digital Taxpayer Account (UDTA): A single portal for citizens and businesses to manage liabilities and filings. AI-Readable Legislation: Converting tax laws into XML/JSON formats to allow automated compliance and searchability via APIs. • Sectoral & Investment Impact FDI Attraction: Introduction of legally binding Advance Tax Rulings (ATR) and public Tax Bulletins to provide the policy certainty required by global investors. SME Support: Radical simplification of fragmented tax laws to encourage voluntary compliance and reduce litigation. • AI Use Cases & Efficiency Risk-Based Auditing: Using Machine Learning to flag high-risk cases (top 1-2%), optimizing audit resources. Fraud Detection: Unsupervised learning to identify "fraud rings," duplicate filings, and under-reporting in real-time. Administrative Tools: Multilingual chatbots for 24/7 taxpayer assistance and automated pre-filled tax returns. • Governance & Workforce Adaptation Anti-Corruption: AI-driven internal audits to detect anomalous employee behavior and ensure a digital audit trail for all refunds. Professional Safeguards: Proposal for an "Automation Social Cost Levy" to fund reskilling for displaced workers in the finance and accounting sectors. Human-in-the-Loop: Mandatory "Human Review and Sign-off" for all AI-generated compliance submissions to maintain legal accountability.
📈 Police Alert: Sharp Surge in Online Financial Fraud 📈
The Sri Lanka Police have issued a high-priority warning regarding a spike in online financial scams, primarily targeting citizens via social media platforms like Telegram and WhatsApp. In response, law enforcement is launching a systematic 2026 awareness drive to combat daily reported incidents. • Core Threat Metrics • Growth: Significant YoY increase in digital fraud complaints. • Platforms: Social media, specifically Telegram and WhatsApp, are the primary channels for fraudsters. • Vulnerabilities: Unauthorized sharing of bank details, OTPs, QR codes, and passwords. • Top 9 Reported Scams • Online Loans: Advertisements for "instant loans" leading to excessive interest and harassment. • Investment & Crypto: Fraudulent high-return schemes often promoted via Telegram. • Phishing: Deceptive links impersonating banks or delivery services to siphon funds. • Apparel & Retail: Fake shopping pages on Facebook where items are never delivered. • Romance Scams: Impersonation to extract funds, often via "foreign gift" claims. • Job Frauds: Fake work-from-home offers demanding "registration fees." • Targeted Demographics: Specific schemes exploiting children (gaming scams) and the elderly (assistance requests). • Security Action Plan • Verification: Public urged to verify official pages and use only trusted platforms. • Reporting: Suspected fraud should be reported immediately to the Cyber Crime Unit of the CID. • Prevention: Citizens are cautioned against sharing sensitive banking information with unverified entities.
🚨 CID Investigates Cyber Breach of Ministry Website
The Criminal Investigation Department (CID) has launched a formal inquiry into a suspected cyberattack targeting the official website of the Ministry of Public Security. • Incident Overview: Multiple instances of unauthorized access were detected, leading to a compromise of the site’s integrity. A formal complaint was lodged by the Ministry Secretary on January 9, 2026. • Technical Irregularities: Authorities flagged "abnormal activity," including visible distortions and irregularities in the display of the national emblem on the website during the breach. • Response & Recovery: Sri Lanka CERT and the Information and Communication Technology Agency (ICTA) have intervened to restore the platform and reinforce its security framework. • Current Status: • A criminal investigation is underway by the CID to identify the source and extent of the intrusion. • A parallel internal ministerial inquiry has been initiated to assess internal protocols and potential vulnerabilities. • Context: This incident underscores the ongoing security challenges for ICT/BPM infrastructure and government digital assets, highlighting the need for robust cybersecurity to protect national information. Based on provisional reports from the Police Media Division.
⚖️ Essential Seminar: Safeguards Under Companies Act No. 12 of 2025
A high-level seminar on the newly amended Companies Act will be held on 27 January 2026 at NH Collection, Colombo, focusing on the heightened legal responsibilities for corporate leaders. • New Regulatory Landscape: The seminar addresses the significant new responsibilities and stringent penal sanctions introduced by the Companies Act No. 12 of 2025 that impact company secretaries and directors. • Key Compliance Risks: Despite clear objectives, several provisions in the amendment remain ambiguous, creating substantial risks for corporate professionals and their organizations. • Strategic Safeguards: Experts will discuss essential mitigation measures, including: • Formally approved policy frameworks. • Enhanced internal compliance procedures. • Clear documentation of duties to manage legal exposure. • Expert Panel: Key speakers include Dr. Aritta Wickramanayake, Nihal Jayawardena (Company Law Advisory Commission Chairman), and Kithsiri Gunawardena (LOLC Insurance Chairman), alongside regulators from the CSE and the Registrar of Companies. 📈 Context: These amendments represent a significant shift in corporate governance in Sri Lanka, emphasizing accountability and the need for robust internal legal safeguards.
📈 Hayleys PLC Flags Lending Limits as Major Growth Barrier
Sri Lanka’s largest diversified conglomerate, Hayleys PLC, has identified the reduction of the Single Borrower Limit (SBL) as a critical hurdle for large-scale corporate expansion. Speaking at the HNB Investment Bank Investor Forum, Executive Director Sarath Ganegoda highlighted that access to funding remains the "number one challenge" despite stabilising macroeconomic indicators. • Regulatory Constraints: The Central Bank of Sri Lanka (CBSL) has tightened lending limits to a single borrower/group to 25% of Tier I capital (previously 30%). This cap restricts large firms from securing the substantial capital needed for high-impact projects. • Growth vs. GDP: While Hayleys has maintained an 8-9% growth rate in USD terms over the last decade, Sri Lanka’s GDP has averaged only ~2%. The Group warns that double-digit growth is unattainable without external expansion or improved credit access. • Export Sector Stagnation: Tea remains the top export—a structure unchanged for 30 years—struggling at US$ 1.4–1.6 Bn. Hayleys aims for 50% of its US$ 1.6 Bn turnover to come from exports to remain a net forex earner. • Expansion Barriers: Sovereign constraints and rigid regulations hinder overseas investments, with Ganegoda noting extreme difficulty in obtaining approvals for even US$ 10 Mn in external investments. _Note: Figures based on 2025/26 interim performance and provisional regulatory data._
National Housing Policy to be Unveiled by March 🏘️
The Government of Sri Lanka is set to introduce a comprehensive National Housing Policy by March 2026, marking the first major update to the framework since 2014. The policy aims to shift away from historically "politicised" and poorly planned projects toward a more inclusive, ground-reality-based approach. • Core Objectives: The framework focuses on poverty alleviation, addressing internal displacement from past conflict, and providing solutions for post-disaster housing needs driven by increasing climate-related catastrophes. • Target Beneficiaries: Focus areas include urban slum clearance, low-income communities, public servants, and plantation workers. • Key Implementation Agencies: Programs will be primarily driven by the National Housing Development Authority (NHDA) and the Urban Development Authority (UDA). • Challenges & Reforms: • Integration of State agencies to streamline execution. • Securing consistent long-term funding and effective financing mechanisms. • Balancing construction demands with social welfare objectives. • Correcting "flawed approaches" previously influenced by a lack of understanding of local power dynamics by international partners. The policy is currently under revision to ensure sustainable and affordable housing across all income groups, addressing both complex rural and urban needs.
### 📈 SME Lending: The Risks of Market Intervention
Recent headlines suggesting banks are thriving at the expense of struggling SMEs have sparked calls for statutory interventions. However, economic analysis warns that artificial interference in credit markets could undermine Sri Lanka's recovery. • The SME Context Small and medium enterprises have faced a "perfect storm" of external shocks: the Easter Sunday attacks, Covid-19 lockdowns, the economic crisis (currency collapse and interest rate volatility), and recent climate disruptions like Cyclone Ditwah. While these events were beyond their control, their resulting inability to service debt has fueled the narrative for a "fairness probe" into credit enforcement. • Systemic Risks of Intervention Market experts argue that intervening in lending frameworks—such as imposing interest rate ceilings or altering parate execution (asset recovery) laws—poses significant risks: Financial Instability: Banks act as custodians; if credit mechanisms fail, the savings of the entire nation are at risk. Credit Contraction: Intervention can shrink the pool of loanable funds, leading to financial exclusion where even credible first-time borrowers are denied credit. Informal Markets: Distorting formal credit pricing often pushes businesses toward high-risk illegal lending. • Current Economic Outlook National Context: The CBSL Governor, Dr. Nandalal Weerasinghe, emphasized that maintaining the banking system's integrity is vital for national stability. Sector Support: Instead of price controls, the focus remains on targeted assistance. For 2026, the government has introduced the RE-MSME Plus scheme, offering 3% concessionary loans to disaster-hit businesses. Diversification: Strengthening credit markets is seen as the only sustainable path to investment-led growth and employment. _Note: Summary based on news reports and provisional economic commentary as of January 2026._ ---
CMTA Calls for Abolition of 15% Used Vehicle Import Depreciation 📈
The Ceylon Motor Traders’ Association (CMTA) has urged the government to remove the 15% depreciation allowance currently granted on used vehicle imports, citing significant revenue losses and market distortion. • Key Proposals: Abolish the 15% depreciation on CIF value for used vehicles, arguing many have near-zero mileage and prices comparable to brand-new units. Implement a structured depreciation table based on age, with a maximum cap of 10%. Ensure vehicles are registered within 3 months to prevent foreign currency leakage from stockpiling; penalties for non-compliance range from 4% to 40%. • Economic Impact: The CMTA claims the current policy creates "revenue leakage" for the state and lacks "plausible justification." Emphasizes that brand-new vehicles imported via authorized agents save foreign currency through manufacturer warranties, which cover parts and repairs for up to 5 years. • Market Fairness: The Association argues that if affordability is the goal, similar concessions should extend to the automotive authorized agent sector to ensure fair competition. The CMTA remains open to supporting a transparent, structured framework aligned with national revenue objectives.
## 📈 Port City Banking Amendments Risk 'Shadow Banking' System
Opposition MP Faiszer Musthapha has warned Parliament that proposed amendments to the Colombo Port City Economic Commission Act could destabilize Sri Lanka’s domestic economy and weaken financial regulation. • Regulatory Shift: The Bill allows the Port City Commission to issue offshore banking licenses independently of the Banking Act. Musthapha argued this creates a "shadow banking system" by shifting oversight away from the Central Bank's established expertise. • Financial Risks: Provisions allowing offshore banks to borrow foreign currency from domestic banks could strain national foreign exchange reserves. Furthermore, the lower capital requirement for offshore banks ($15 Mn) vs. domestic banks ($60 Mn) creates an uneven playing field. • Labor & Brain Drain: The removal of income tax exemptions for Sri Lankan residents employed in the Port City—amid already high personal tax rates—is expected to worsen the migration of skilled professionals. • Key Concerns: Systemic Risk: Parallel licensing frameworks may bypass stringent domestic safeguards. Regulatory Standards: Strict adherence to vague "international standards" (like Basel norms) could strip the Central Bank of the discretion needed to protect national interests. Investment Bottlenecks: Lack of statutory timelines for approvals hinders ICT/BPM and other high-value investments. The MP urged the Government to maintain the Central Bank as the primary regulator to prevent a "dangerous" decoupling of Port City operations from the national banking system.
SEC Probes Abnormal Wealth Trust Debut Movements 📈
The Securities and Exchange Commission (SEC) of Sri Lanka has identified key parties behind the "abnormal" price movements during the Wealth Trust Securities Ltd debut on 7 January. Initial findings suggest the actions were deliberate and primarily involved retail investors. • Investigation Status: The SEC has questioned several individuals and reviewed records to uncover the full picture. Officials confirmed that those identified are mostly retail investors using internet trading platforms without consulting licensed investment advisers. • Market Safeguards: Following the debut chaos, the Colombo Stock Exchange (CSE) now prohibits market orders on a security's first trading day. While a few investors attempted to place sell orders at "excessive prices" (reportedly reaching Rs. 25,000 against a Rs. 7.00 IPO price) on 8 January, new restrictions prevented execution. • Regulatory Action: The SEC warned that any confirmation of market manipulation will result in strict action under the SEC Act. Despite the volatility, authorities noted that most investors acted responsibly. • Sector Context: As a primary dealer in government securities, the stability of Wealth Trust Securities is vital for investor confidence in the financial services sector and the broader capital market. _Summary based on initial investigative findings as of 12 January 2026._
📈 Solar Industry Raises Alarms Over Draft National Electricity Policy
The Solar Industries Association (SIA) warns that several provisions in the new Draft National Electricity Policy could destabilize Sri Lanka's renewable energy growth and threaten its 70% green energy target by 2030. • Sector Impact & Scale • The renewable energy sector currently supports 400+ companies and provides employment to over 40,000 Sri Lankans. • Total installed capacity stands at 3,333 MW (as of Nov 2025), with 92% (3,042 MW) developed via the Feed-in Tariff (FIT) mechanism. • Critical Policy Concerns • Uncompensated Curtailment: Provisions allow the grid to cut solar/wind supply without financial compensation, undermining project bankability. • Abolishing FIT: Replacing fixed tariffs with competitive bidding for projects under 10 MW may collapse the SME-led solar and mini-hydro sectors. • Forex Risks: Requirement for LKR-denominated Power Purchase Agreements (PPAs) ignores that most equipment is imported in USD, discouraging FDI. • Key Recommendations • Implement a 1% annual curtailment cap with compensation for excess. • Maintain USD indexation for tariffs to protect debt servicing against exchange rate volatility. • Establish technical committees to determine fair PPA extension rates rather than a mandatory 65% tariff cut. • Economic Outlook Failure to address these issues could increase reliance on high-cost fossil fuels, leading to higher consumer tariffs and increased foreign currency outflows.
## Sri Lanka Launches National Digital Motor Insurance Card 📈
The Insurance Regulatory Commission of Sri Lanka (IRCSL) has officially introduced a permanent digital insurance card (e-card) to replace the traditional annual plastic cards issued to vehicle owners. • Strategic Shift: The move aims to phase out physical cards to reduce environmental pollution and cut the substantial financial costs associated with producing plastic cards for the insurance sector. • Enforcement & Integration: Sri Lanka Police officers received 500 tablet devices (Western Province) to access the Road Accident Data Management System. These devices will facilitate real-time roadside verification of the new digital e-cards. An additional 150 tablets were symbolically handed over to senior officers to streamline digital transitions. • Key Objectives: Beyond cost savings, the initiative addresses operational challenges and modernizes data management between the insurance industry and law enforcement. • Implementation Status: Launched on January 7, 2026; police training and hardware distribution are currently underway to ensure a seamless transition from physical to digital verification.
## 🛡️ Insurance Sector Braced for Global Compliance Standards
The Insurance Regulatory Commission of Sri Lanka (IRCSL), in collaboration with the Financial Intelligence Unit (FIU), conducted a high-level awareness session on AML/CFT/PWMD (Anti-Money Laundering/Countering the Financing of Terrorism/Proliferation of Weapons of Mass Destruction) compliance. The session, held via MS Teams on 17 November 2025, prepared the industry for the upcoming Mutual Evaluation (ME) by global bodies in 2026. • Participation & Reach Total Attendees: 589 professionals, including Board Directors, Senior Management, and Compliance staff. Sectors Represented: Life and General insurance companies, alongside insurance brokering firms. Stakeholders: Supported by the Insurance Association of Sri Lanka (IASL) and Sri Lanka Insurance Brokers Association (SLIBA). • Key Compliance Obligations National Risk Assessment: Insights on the latest legal frameworks and outcomes of the mock evaluation. Risk Mitigation: Emphasis on Customer Due Diligence (CDD), identifying Suspicious Transactions (STRs), and screening against UN Sanction Lists. Consequences of Non-Compliance: Discussion on the economic impact of being "grey/blacklisted," which could affect Sri Lanka’s foreign investment and global financial standing. • Strategic Focus The initiative aims to strengthen the financial services sector's integrity, ensuring the insurance industry contributes to national economic stability through robust oversight and ethical practices. 📈 ---
Sri Lanka Braces for 2026 AML/CFT Evaluation 📈
Central Bank (CBSL) Governor Dr. Nandalal Weerasinghe warns of "high stakes" as Sri Lanka prepares for its third Mutual Evaluation in 2026, a critical assessment of the nation's anti-money laundering and counter-terrorism financing framework. • Economic Risks of Failure: An adverse outcome could lead to FATF Grey Listing, causing: • Increased scrutiny of cross-border financial transactions. • Higher compliance costs and delays in international payments. • Reduced access to correspondent banking relationships. • Negative impacts on FDI, capital inflows, and remittance flows. • Key Evaluation Metrics: The assessment, coordinated by the Asia Pacific Group (APG), will measure: • Technical compliance with the FATF 40 Recommendations. • Effectiveness against 11 Immediate Outcomes. • Current Progress: Based on provisional 2025 data, the Financial Intelligence Unit (FIU) has: • Strengthened monitoring of stakeholder action plans. • Advanced amendments to core AML/CFT/CPF legislation. • Expanded analysis of Suspicious Transaction Reports (STRs). • Strategic Outlook: The Governor emphasized that "highest political will" and inter-agency coordination (Finance, Defence, Justice) are vital. Success is essential to maintain investor confidence and protect overall economic growth.
⚠️ Draft Terrorism Bill Risks GSP+ Access 📈
The proposed Prevention of Terrorism against the State Bill (PTSB) has sparked concerns over its compliance with international norms, potentially endangering Sri Lanka's critical trade preferences with the European Union. • Trade & Economy Impact The EU’s GSP+ concessions remain vital for Sri Lankan exports, particularly apparel & textiles and rubber, especially following recent global tariff shifts. Maintaining GSP+ is contingent on meeting international human rights and rule of law standards, which the current draft is accused of failing. • Key Legal Concerns • Normalization of Exception: The bill reportedly integrates emergency-style powers—such as proscribing organizations, curfews, and movement restrictions—into ordinary law without sufficient parliamentary oversight. • Broad Definitions: Critics argue the draft uses overbroad definitions of terrorism, which could lead to the targeting of dissenters rather than focusing on procedural exceptions for existing criminal acts. • Detention & Evidence: The PTSB is noted to mirror the existing PTA by allowing lengthy detention periods and high-pressure settings that may encourage forced confessions. • Status & Recommendations Based on provisional draft analysis, experts suggest a "procedural exception" model. This would limit the law to specific investigative powers for crimes already defined in other legislation (e.g., aviation or weapons laws), ensuring better alignment with the ICCPR and safeguarding national market access.
## CBSL Accelerates Financial Sector Consolidation & Resolution Reforms 📈
The Central Bank of Sri Lanka (CBSL) has reaffirmed its commitment to the Master Plan for Consolidation, focusing on systemic stability and long-term sustainability for the banking and non-bank financial sectors. • Strategic Consolidation: Efforts continue to merge banks and finance companies to achieve the scale and balance sheet strength necessary to support large-scale investments and economic growth. • Enhanced Monitoring: CBSL has commenced stricter oversight of finance companies using a revised Phase II assessment framework to improve operational efficiency and risk management. • Resolution Framework: Building on lessons from the 2022 crisis, significant progress was made in 2025 to manage distressed institutions. Full implementation of a robust resolution framework is expected by 2026. • Key Objectives: Improving financial inclusion and technology investment. Safeguarding depositor confidence through orderly resolutions. Aligning Sri Lanka’s financial system with international best practices. _Source: CBSL Annual Policy Address (Provisional Data)_ ---
📈 Garment Exports Gain Duty-Free Edge in UK Market
Sri Lanka's apparel & textiles sector is set for a major boost as the UK's liberalised Developing Countries Trading Scheme (DCTS) officially took effect on 1 January 2026. • Core Reform: Manufacturers can now source up to 100% of raw materials globally while maintaining zero-tariff access to the UK. This removes the "double transformation" rule that previously required two major manufacturing steps to occur within Sri Lanka. • Sector Impact: • The apparel industry accounts for over 60% of exports to the UK and supports ~1 million livelihoods. • The UK is Sri Lanka's second-largest garment market, valued at approximately US$ 675 Mn. • New rules allow Sri Lankan firms to access global supply chains on a level playing field with regional competitors. • Regional & Export Diversification: • An Asia Regional Cumulation Group of 18 countries has been established. • This allows exporters to source inputs from these regional partners while retaining preferential benefits, encouraging diversification in non-garment sectors where over 90% of products are now eligible for zero tariffs. • Economic Outlook: Based on provisional data, garment exports are expected to increase significantly under these arrangements, supporting national economic recovery and employment.
Govt. Flags Decline in Korean Job Placements 📈
The Sri Lankan government has addressed a significant drop in employment opportunities in South Korea, citing a decline from over 16,000 departures in 2022 to approximately 10,202 in 2025. • Overall Trends Departures facilitated by the government fell from 6,639 in 2022 to 3,712 in 2025. Private agency departures also dropped from 9,745 in 2023 to 6,490 in 2025. • Sector Breakdown (Current Registrations) As of January 2026, 10,122 Sri Lankans remain registered for placement: • Manufacturing: 5,820 (2025 quota set at 6,800) • Services: 2,518 • Shipbuilding: 1,391 (Only 32 contracts issued in 2025) • Fishing: 343 • Construction: 50 • Key Challenges The decline is attributed to Korean policy shifts, labor demand instability, and high rates of illegal overstays. Employer concerns regarding frequent job changes by Sri Lankan workers have also negatively impacted recruitment. • Mitigation & Diplomatic Push The government is negotiating to shift eligible candidates from the low-demand shipbuilding and service sectors into manufacturing. High-level diplomatic talks are ongoing to increase job quotas for Q1 2026 and improve the perception of Sri Lankan worker reliability. • Other Markets Placements in Italy remain stalled due to a lack of willing employers; a fresh MoU is currently being pursued to revitalize the overseas employment pipeline in Europe.
Govt. considers Pension Option for EPF Members 📈
The Sri Lankan government is currently discussing amendments to the Employees’ Provident Fund (EPF) Act to offer contributors the choice of a regular pension instead of a traditional lump-sum payment upon retirement. • Proposed Reforms The National Labour Advisory Council is evaluating an optional pension scheme to strengthen long-term income security for private sector and semi-government workers, particularly as the national population ages. The existing lump-sum withdrawal framework will remain an option for those who prefer it. • Fund Performance (End-2024) • Total Assets: Net worth rose 12.6% YoY to Rs. 4,375.7 Bn. • Contributions: Total inflows increased 11.3% to Rs. 234.4 Bn. • Net Position: Achieved a positive net contribution of Rs. 46.3 Bn (reversing a Rs. 5.3 Bn outflow in 2023). • Investment Income: Rose 6.8% to Rs. 513.8 Bn, supported by an 11% interest rate on member balances. • Sector Context The EPF remains the dominant social security mechanism, accounting for 81.0% of Sri Lanka’s superannuation sector assets. While current laws allow for a 30% early withdrawal for housing or medical needs, officials warned that frequent interim payments could weaken overall retirement protection. • Strategic Importance As the largest investor in government securities, the EPF is central to national fiscal stability. The proposed flexibility aims to mitigate risks for retirees while preserving the fund's role as a vital safety net for the labour market.
📈 Digital Trust: The Foundation of Sri Lanka’s $15 Bn Digital Economy
Supreme Court Judge Arjuna Obeyesekere and the Data Protection Authority (DPA) emphasized that Sri Lanka’s digital growth must be anchored by a robust trust architecture to ensure long-term economic value. • Core Economic Vision: The government aims to unlock US$ 15 Bn in value through the digital economy over the next decade. Success depends on shifting from technological adoption to "digital trust." • Regulatory Status: The Personal Data Protection Act (PDPA) No. 9 of 2022 is moving from a "future-oriented framework" to an urgent economic necessity. The DPA is currently being operationalized, with a phased implementation planned to allow the private and public sectors to adapt. • Sector Shifts: • Financial Services: Rapid transition from cash to a "cash-light" economy via QR codes, mobile wallets, and digital KYC (Know Your Customer) processes. • ICT/BPM & AI: Concerns raised over AI-driven decision-making. Future trust depends on transparency in how algorithms "infer, predict, and decide" rather than just how data is stored. • E-commerce: Platform-based commerce is now a routine layer of everyday life, requiring "privacy by design" to sustain consumer confidence. • Critical Warning: Connectivity alone does not drive progress; "trust moves people." Without accountability in automated systems, digital platforms risk scaling harm as efficiently as they scale revenue. • Next Steps: The DPA will focus on capacity building, awareness programs, and establishing complaint-handling mechanisms before announcing the Act's effective enforcement date.
## 🛡️ IPS Study: SGBV Risks for Migrant Domestic Workers
The Institute of Policy Studies (IPS) has released a critical study on sexual and gender-based violence (SGBV) faced by Sri Lankan female migrant domestic workers in the Middle East, calling for urgent systemic reforms. • Key Findings: Research identifies a "continuum of violence" including harassment, deception, wage theft, forced labor, and violations of basic human needs. • Systemic Drivers: Vulnerabilities are heightened by the Kafala sponsorship system, informal work arrangements, and extreme economic pressure driving migration. • Data Source: Findings are based on official complaint data from the Sri Lanka Bureau of Foreign Employment (SLBFE) and key informant interviews, reflecting post-pandemic realities. • Proposed 4-Pillar Action Plan: • Pre-emptive risk identification and awareness programs. • Efficient and accelerated reporting mechanisms for victims. • Support structures to facilitate positive coping mechanisms. • Binding penalty measures to deter future SGBV incidents. The study serves as an urgent call to action for recruitment agents and the government to strengthen protection frameworks for this vital segment of the workforce. 📈 --- Would you like me to find more details on the specific SLBFE complaint statistics mentioned in the full IPS report?
🐘 Sri Lanka's Human-Elephant Conflict: A Growing Crisis 📉
The recent 'Ditwah' catastrophe has intensified the long-standing Human-Elephant Conflict (HEC) debate in Sri Lanka, exposing critical land management flaws and urging immediate rationalization of elephant and human populations. • Current Situation (2024 Estimates): • Sri Lanka's land area: 65,210 sq km. • Human population: 23.3 million. • Elephant population: 7,450. • 70% of wild elephants live outside dedicated areas, sharing 44% of the landscape with humans due to habitat and food scarcity. • 30% of land is landslide-prone, with 34% of the human population residing there. • Tragic Casualties: • 2023: 488 elephant deaths (highest on record) and 187 human fatalities. • 2011 - mid-2025: A staggering 4,600 elephants and 1,528 humans have died in HEC clashes. Experts warn 2025 is trending towards higher casualty figures. • Economic Burden: Billions in taxpayer money and foreign exchange are reportedly wasted on ineffective elephant control measures. Farmers face significant crop destruction, impacting livelihoods and national food economy, further aggravated by 'Ditwah'. • Proposed Long-Term Solution: • Determine 'Convenient Total Carrying Capacity' (CTCC): Establish a sustainable elephant population limit for 10-year periods, considering ecological and human needs. • Export Surplus Elephants: If the population exceeds CTCC, export surplus elephants to zoos in needy countries through diplomatic channels, ensuring breed maintenance. • Birth Control: Implement short and medium-term sterilization/birth control measures. • Diplomatic Efforts: Ease international restrictions on wild elephant exports/imports. • Anticipated Benefits: Reduced crop damage, improved economic growth, more habitat for elephants, additional land for humans and crops, regulated elephant nutrition, forest protection, and a new route to earn foreign exchange, saving billions currently spent on control measures. • Call to Action: Proposes a Presidential Task Force, including experts from DWC, Land Management, environmental groups, and farmer representatives, to deliberate on these proposals and submit a report within three months.
🇱🇰 Sustainable Agriculture Program Launched with Rs. 800 Mn Loan Facility from 2026! 📈
The Cabinet of Ministers has approved a new concessional agricultural loan scheme, the "Sustainable Agriculture Program," to boost rural livelihoods and national economic growth. • Launch: To be rolled out annually starting 2026. • Funding: Financed by a revolving fund under the existing Smallholder Agribusiness Partnerships Program (supported by GoSL and IFAD). Recoveries from current loans will feed into this new "Sustainable Agricultural Fund." • Initial Allocation: Rs. 800 million from the fund for 2026 implementation. • Loan Categories & Terms: • Individual Loans: Up to Rs. 5 million through agricultural and Samurdhi banks. • Interest Rate: 2% per annum. • Repayment: Max 5 years. • Grace Periods: Up to 12 months for applications/joint ventures; 6 months for working capital. • Bulk Loans: Capped at Rs. 500,000 per beneficiary. • Interest Rate: 2% per annum. • Repayment: Max 3 years. • Eligibility: Individuals and institutions involved in a wide range of agricultural and agri-related activities, including cultivation, processing, value addition, input supply, production, and exports. • Objective: To enhance productivity, encourage value addition, and improve incomes across the agricultural value chain, ensuring continuous concessional credit through the revolving fund.
Cabinet Approves 7 New Industry Consultancy Committees 🇱🇰
The Cabinet of Ministers has greenlit the establishment of seven new Industry Consultancy Committees to boost policy coordination and address gaps in industrial and entrepreneurship development. This expands on the existing 20 Consultancy Boards already in operation. • Purpose: To strengthen evidence-based policymaking, enhance industry participation, and support sustainable growth by aligning government policies with industry needs. • New Sectors Covered: Indigenous & Traditional Medicine Confectionery Production Traditional Handicrafts Chicken-Related Industries Ornamental Fish & Seaweed Creative Crafts Event Management • Committee Structure: Each committee will comprise up to 25 members, drawing expertise from State institutions, commercial boards, universities, research bodies, and industry professionals. • Initiative: Proposed by Industry and Entrepreneurship Development Minister Sunil Handunneththi, aiming to extend structured consultation to previously uncovered industry segments.
🚨 FIU Collects Rs. 9.5 Mn in Penalties from Reporting Institutions 📈
The Financial Intelligence Unit (FIU) of Sri Lanka has collected Rs. 9.5 million in administrative penalties from various reporting institutions. • These penalties were imposed between July and September 2025. • The fines were due to non-compliance with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations. • Penalties were administered under the Financial Transactions Reporting Act (FTRA), No. 6 of 2006, with amounts scaled based on violation gravity. • All collected funds have been transferred to the Consolidated Fund.
📈 MSMEs Accuse Banks of Usury, Call for CBSL Action
The Ceylon Federation of MSMEs has formally complained to the Central Bank of Sri Lanka (CBSL) about excessive lending rates charged by banks, despite significant policy rate cuts. • Key Concern: Banks are not proportionately passing on policy rate reductions to borrowers, leading to inflated lending spreads. • Economic Disconnect: While CBSL's Overnight Policy Rate (OPR) was 7.75% by Dec 5, the Average Weighted Prime Lending Rate (AWPLR) remained significantly higher at 8.74%. • Impact on MSMEs: This divergence disproportionately burdens MSMEs, hindering their recovery, investment, and job creation post-2022 economic crisis. • Bank Profits: The Federation highlighted a sharp rise in bank profits (Profit After Tax) during the 2022-2024 period, coinciding with high interest expenses for MSMEs. • Call to Action: The MSME body urges stronger regulatory intervention from CBSL to ensure fair monetary policy transmission, prevent unjustified widening of lending spreads, and demands that banks return excess interest charged to MSME borrowers.
🚨 Presidential Emergency Powers in Sri Lanka: A Legal Showdown 🇱🇰
• A recent appraisal delves into the Sri Lankan Supreme Court's landmark 2022 ruling on the Acting President's proclamation of emergency (July 17, 2022) during a period of intense economic crisis and civil unrest. • The emergency was declared amidst severe fuel/food shortages, widespread protests, mob violence (including a MP's murder, torching of official residences), and attempts to disrupt Parliament's election of a new President. • In Ambika Satkunanathan v. Attorney General, a divided Supreme Court majority ruled the Acting President violated fundamental rights by declaring a nationwide emergency without adequately considering less drastic measures provided by the Public Security Ordinance (Part III). • The dissenting judges argued that once objective conditions for an emergency are established, the President isn't mandated to consider alternative, lesser options. • The article critically views the majority decision, stating it's "demonstrably at variance with established authority" and risks "judicial overreach" by substituting judicial judgment for executive discretion. • It highlights global precedents showing judicial restraint in reviewing emergency powers, recognizing the Executive's unique role, expertise, and need for swift, decisive action to maintain public order and confidence during national crises.
📈 Deloitte Sri Lanka CFO Conclave 2025: Navigating Financial Leadership in a New Era
Deloitte Sri Lanka recently hosted its 'CFO Conclave 2025 – Leading with Insights,' bringing together leading finance professionals to discuss the evolving role of CFOs amid increasing transparency, regulation, and technology. • The forum highlighted how finance functions can adapt to growing regulatory expectations while driving strategic transformation and resilience. • Key insights shared: Regulatory Updates: Discussion on International Financial Reporting Standards (IFRS) 18 (effective Jan 2027) for enhanced comparability in profit-and-loss, and IFRS 19 for simplified disclosure requirements. CA Sri Lanka Code of Ethics 2025 (aligned with IESBA 2024) and the Companies (Amendment) Act No. 12 of 2025 mandating beneficial-ownership disclosure, emphasizing stricter governance and board-level accountability. Taxation: Focus on Inland Revenue Department's transfer pricing regulations, the Advance Pricing Agreement (APA) framework for predictability, and updates to foreign exchange regulations, including outward investment frameworks and allowances for exporters. AI Governance: Addressing emerging risks like bias, data leakage, and model drift, urging CFOs to embed governance principles across the AI lifecycle for financial integrity. • The Conclave reinforced that modern CFOs are increasingly becoming catalysts for transformation, governance, innovation, and long-term value creation, moving beyond just financial accuracy.
🇱🇰 Green Taxation: Paving the Way for Climate Resilience & Fiscal Strength 📈
Sri Lanka faces critical economic and environmental challenges, exacerbated by climate shocks like Cyclone Ditwah. Green taxation emerges as an essential fiscal tool to both reduce environmental harm and build resilience. • What it is: Green taxation integrates environmental responsibility into the tax system by pricing pollution and resource use. It aims to steer businesses and households towards greener choices, supporting fiscal recovery while curbing degradation—a threat to food security, tourism, and public health. This also positions Sri Lanka to attract green investment. • Current Gaps: Sri Lanka's progress is slow due to: • Low public awareness and misunderstanding. • Varying industry readiness, with some export-oriented manufacturing adapting while domestic industries lag. • Fragmented, outdated, and weakly enforced environmental taxes. • Weak monitoring systems for emissions and pollution. • Global Insights: Successful models from Sweden (carbon tax), Japan (vehicle incentives), Singapore (plastic/waste taxes), and Germany (eco-taxes for renewable energy) highlight the importance of gradual introduction, transparent communication, and reinvestment of revenue. • Potential Risks: Challenges include a regressive impact on low-income groups, competitiveness concerns for small businesses, enforcement gaps, public resistance, and potential misuse of revenue. Thoughtful design and public engagement are crucial. • Way Forward for Sri Lanka: Key steps include: • Introducing a National Green Tax Policy Framework. • Phased, sector-focused rollout (e.g., plastics, transport, construction, energy). • Ensuring revenue transparency by earmarking funds for climate action (e.g., renewable energy, climate-resilient agriculture). • Supporting industries with green transition financing. • Strengthening data systems and monitoring technology. • Launching nationwide awareness campaigns. • Continuously learning from global best practices. Inaction is an expensive choice. A well-designed green tax framework can be a national shield and a springboard for long-term resilience, turning climate risks into opportunities.
Cabraal Discharged Conditionally, Ordered to Compensate CBSL 🏛️
• Former CBSL Governor Ajith Nivard Cabraal has been granted a conditional discharge by the Colombo High Court. • He is required to compensate the Central Bank of Sri Lanka (CBSL) for losses incurred from investments in Greek Government treasury bonds. • The compensation amount is a little over Rs. 1.8 billion (specifically Rs. 1,843,267,595.65), to be transferred to CBSL within three months. • Failure to comply with this order will result in further indictment. • Cabraal was accused of causing financial loss to the Government between 2011 and 2012. • His legal team argued that while his participation in the decision couldn't be denied, he had no intentional intent to cause loss and acted based on recommendations from Deputy Governors and senior officers. • The Commission to Investigate Allegations of Bribery and Corruption (CIABOC) agreed to withdraw the indictment under s. 67 (3) of the Anti-Corruption Act 2023, conditioned on the payment. • Four other senior Central Bank officers accused in the case were acquitted.
🚨 Cyclone Ditwah Exposes Sri Lanka's Early Warning Gap 🚨
Cyclone Ditwah in late November highlighted a critical weakness in Sri Lanka's disaster management: the gap between accurate early warnings and public response. • Despite The Meteorological Department, Irrigation Department, and National Building Research Organisation issuing continuous, accurate warnings well in advance for flooding, landslides, and water hazards, public preparedness and community reaction fell short, leading to significant property damage and loss of a few hundred lives. • While the technical aspects of early warning systems, supported by technological advancements, functioned effectively, the translation of these warnings into action remains critically weak. • Key reasons for poor public response included underestimation of hazard severity, treating warnings as routine, lack of specific guidance on actions, and community resistance to evacuation. • The article emphasizes the urgent need for: • Continuous community engagement, education, and preparedness training. • Strengthening community-level disaster preparedness programs involving schools, religious institutions, and community-based organizations. • Simplifying risk communication to ensure public understanding and prompt action. • With climate change intensifying extreme weather events, cultivating a culture of preparedness is crucial for Sri Lanka to mitigate future disaster impacts.
Serena Williams Fuels Comeback Speculation, Then Denies It 🎾
• Serena Williams has filed necessary paperwork for a return to professional tennis, re-entering the drug testing pool. • However, the 23-time Grand Slam singles champion, who retired after the 2022 US Open, swiftly denied any comeback, stating on social media: “I’m NOT coming back. This wildfire is crazy”. • The International Tennis Integrity Agency confirmed Williams, 44, is back on the list of players registered for the drug testing pool, with her name appearing on the most recent document published on October 6. • The reason for her re-entry into the testing pool while denying a return remains a mystery, as joining the list invites visits from doping officials and requires players to disclose their whereabouts for one hour daily. • Retired players must be in the testing pool for six months before being eligible to compete professionally again. A potential return would be possible from April, if her re-entry was effective from October 6.
🚨 SEC Sri Lanka Issues Alert on Unlicensed Entity 'Gladius South Asia' 🚨
• The Securities and Exchange Commission of Sri Lanka (SEC) has issued a public alert regarding Gladius South Asia. • Gladius South Asia is not licensed by the SEC to operate as a market participant in Sri Lanka or overseas. • The entity reportedly claimed to be licensed by the Financial Conduct Authority (FCA) in the United Kingdom. • However, the FCA has officially confirmed that Gladius South Asia is not registered with the UK regulator. • The SEC emphasizes investor caution when dealing with entities making unverified regulatory claims.
🚨 Sanasa Life Insurance Registration Suspended!
The Insurance Regulatory Commission of Sri Lanka (IRCSL) has suspended Sanasa Life Insurance Company PLC's registration to conduct long-term insurance business. • The suspension commenced on December 5, 2025, and will last for three weeks, concluding on December 26, 2025. • This action was taken by the IRCSL under Sections 18(1)(d), (f), (g), and (h) of the Regulation of Insurance Industry Act No. 43 of 2000. • The company made this disclosure to the Colombo Stock Exchange (CSE) in compliance with listing rules.
🇱🇰 Sri Lanka's Investment Pitch & Climate Finance Call in Newsweek Interview 📈
President Anura Kumara Dissanayake outlined Sri Lanka's economic recovery strategy and climate adaptation needs in a Newsweek interview. • Core Challenge: Breaking the cycle of setbacks (debt distress, Cyclone Ditwah) to achieve sustainable and equitable development amidst overlapping crises. The goal is to prove Sri Lanka's resilience and viability. • Geopolitical Stance: Maintains autonomy to work with major partners (India, China, US) without viewing relationships as a "balancing act." • India: Closest neighbour, first responder. • China: Strong economic & political partner, with existing commercial projects (Hambantota, Port City) managed to protect national interest & sovereignty. • United States: Largest export market, sought for market access, climate finance, and technology partnerships. • Investment Agenda: • Aims for a transparent, rules-based investment regime to ensure certainty, consistency, and confidence. • Introducing a single-window approval system and drafting a new Investment Protection Act. • Focus on attracting US investment in digital infrastructure, manufacturing, and renewable energy. • Climate Finance & Resilience: • Urgent need for climate finance following multi-billion dollar losses from Cyclone Ditwah. • Calls for grants for early warning systems, resilient infrastructure, and coastal protection. • Emphasizes the need for debt sustainability frameworks to evolve for climate-vulnerable countries. • Plans to overhaul disaster management systems for better preparedness and response. • Economic Stability: Balancing increased government revenue and tax base broadening with protecting social spending, while adhering to IMF parameters.
🎉 Binance Secures Landmark Global License Under ADGM Framework! 🇦🇪
Binance, the world’s largest crypto exchange, has achieved a global first by securing comprehensive regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This landmark approval covers Binance's global platform, Binance.com. • Global Standard: This makes Binance the first crypto exchange to operate under ADGM's "gold-standard" regulatory framework, setting a new benchmark for digital-asset regulation worldwide. • Three Regulated Entities: The approval encompasses three distinct entities operating within ADGM: • Nest Exchange Limited: Approved as a Recognised Investment Exchange (RIE) for spot and derivatives trading. • Nest Clearing and Custody Limited: Approved as a Recognised Clearing House (RCH) for clearing, settlement, and secure custody. • Nest Trading Limited: Approved as a Broker-Dealer for "off-exchange" offerings like OTC trading. • Strategic Impact: • Strengthens Binance's commitment to compliance, transparency, and user protection, providing regulatory clarity for its global operations from ADGM. • Reinforces the UAE's position as a leading international hub for financial innovation and digital assets. • Scale: Binance boasts over 300 million registered users globally and more than US$ 125 trillion in cumulative trading volume. • Operational Start: ADGM-regulated activities for Binance.com are set to commence on January 5, 2026.
⚡️ ADB Approves US$ 100M for Sri Lanka Power Sector Reforms
• The Asian Development Bank (ADB) has approved a US$ 100 million policy-based loan to strengthen power sector governance and financial sustainability. • Core Reform: The financing will accelerate the unbundling of the Ceylon Electricity Board (CEB) into independent successor companies (generation, transmission, system operation, distribution), mandated by the Electricity Act of 2024/2025. • Financial Viability: Program supports implementing cost-reflective tariffs and a comprehensive debt restructuring plan for CEB, including transparent debt allocation to the new entities to enhance creditworthiness. • Growth & Investment: A key focus is strengthening renewable energy development and fostering private sector participation through competitive procurement for large-scale projects. • Inclusion: The program promotes gender equality and social inclusion by maintaining lifeline tariffs for vulnerable groups and supporting women's leadership in the energy sector. • ADB will provide an additional US$ 2.5 million technical assistance grant for capacity building and developing business/power system plans for the successor companies.
🚨 CBSL Orders Debt Relief & Low-Interest Loans for Flood/Cyclone Affected!
• Relief Scope: Central Bank (CBSL) has directed all licensed banks to extend temporary debt relief and new credit support to individuals and businesses hit by recent cyclonic and flood disasters. • Request Deadline: Borrowers must request assistance by 15 January 2026. • Key Moratorium: Banks may suspend repayments for up to six months. • New Loan Rate: New facilities (up to two years) must have interest rates capped at 9%. • Fee Suspensions: All late fees, penal interest, and cheque return charges must be suspended until 31 January 2026. • CRIB Directive: Banks are directed not to reject new loan applications solely based on CRIB records. • Compliance: Relief measures are mandated under CBSL Circular No. 04 of 2025.
🇱🇰 CBSL Advisory: Handling Flood-Affected Currency Notes
• The Central Bank of Sri Lanka (CBSL) has issued a notice regarding currency notes potentially damaged or exposed to water due to recent adverse weather conditions. • The public is strongly advised to follow the steps outlined by the CBSL to prevent further deterioration of these affected notes. • Adhering to the instructions will ensure proper handling and management of the damaged currency.
🚨 SL Plans Major Tariff Policy Overhaul by Mid-2026 📈
• The Trade Ministry is set to introduce a comprehensive National Tariff Policy by mid-2026, replacing the current "patchwork, discriminatory," and highly complex system (identified by World Bank). • Core Goal: Shift from a revenue-driven, protectionist structure to a predictable, simplified, and facilitative regime to boost export competitiveness and global value chain integration. • Key Pillars of Reform: • Establishing Predictability & Consistency. • Simplification (dramatically reducing para-tariffs). • Replacing protectionism with time-bound facilitation for infant industries. • Enabling global participation by lowering input costs (raw materials, capital goods). • The policy aims to transform inward-looking SMEs into export-oriented firms and strengthen diversification efforts. • Broader Trade Agenda: Government is reviewing existing FTAs, pursuing new market access (Asia, Africa, Middle East), and actively evaluating an invitation to join the ASEAN Free Trade Area (AFTA). • Facilitation: Reforms include accelerating WTO protocols (14 IP agreements in 3 years) and implementing the Single Window project to address customs bottlenecks, aiming to make Sri Lanka a "compliant, predictable, and investment-friendly" economy.
📢 Treasury Directs Insurers to Fast-Track Ditwah & Flood Claims 🌊
• Treasury Secretary Dr. Harshana Suriyapperuma met with IRCSL and insurance CEOs to push for the immediate settlement of Cyclone Ditwah and flood-related claims. • The move is essential for national economic recovery, supporting income generation, and restoring business operations for thousands of distressed families and businesses. • Key economic sectors severely impacted and needing prompt claim payouts include tourism, Small and Medium Enterprises (SMEs), and export-oriented industries. • The Insurance Regulatory Commission of Sri Lanka (IRCSL) is closely monitoring the process to ensure transparency and speed, prioritising immediate relief. • IRCSL Hotline: Policyholders unable to contact their insurance companies can call the IRCSL for assistance (077 241 8511).
SL Kicks Off National Campaign to Combat Digital Violence Against Women & Girls 💻
• The '16 Days of Activism Against GBV' national program was launched by UNFPA, the Ministry of Women & Child Affairs, and supported by the Government of Canada, focusing on the global theme: "UNiTE to End Digital Violence." • Key Findings (2025 Study): The most common online harms reported are creation of fake profiles (36.9%) and sharing obscene texts/videos (36.9%). Unauthorised exposure of personal info (doxxing) and gender trolling were also significant (24.3% each). • Tech Gaps: UNFPA highlighted that current AI tools for digital safety are unable to effectively detect hate content in Sinhala or Tamil, noting a crucial safety gap in Natural Language Processing (NLP). • Govt. Action & Legal Reform: - PM urged victims not to remain silent and guaranteed comprehensive support frameworks are available. - The Minister of Women and Child Affairs detailed plans for urgent review and amendment of the Penal Code & Cyber Laws to adequately criminalise and prosecute all forms of Technology Facilitated GBV (TFGBV). - Existing Penal Code Sec 345 (sexual harassment) allows for up to five years imprisonment, a fine, or both. • New Mechanisms: - Sri Lanka CERT is developing a new E-safety web portal, linked directly to resolving organisations, to allow citizens to report violations. - The UN is supporting the Government to build a central, safe reporting mechanism for both online and offline violence. • Support Hotlines: Women and Children’s Desk (109), National Hotline (1938), SLCERT (101), Mithuru Piyasa (070 261 1111), Women In Need (077 567 655).
🚨 Cyclone Ditwah Damage Data Collection Underway: Deadline Dec 16
• The Ministry of Industries has initiated a mechanism to collect data on industries affected by Cyclone Ditwah. • Affected industrialists are urgently requested to submit the necessary information through the dedicated system. • Crucial Deadline: Data collection is scheduled to be completed by 2:00 PM on December 16, 2025. • Submission portal is accessible via: www.industry.gov.lk. • Assistance for submissions can be obtained from Ministry of Industries and Entrepreneurship Development officers stationed at respective Divisional Secretariat and District Secretariat offices.
🇱🇰 CBSL & SLAASMB Ink MoU to Sharpen Financial Sector Scrutiny 📈
• The Central Bank of Sri Lanka (CBSL) and the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) signed an MoU on 1 December. • The agreement establishes a framework for coordination and information sharing to enhance the oversight of banking and financial institutions. • CBSL's Role: Prudential regulator focused on operational stability. • SLAASMB's Role: Inspecting financial statements for strict compliance with Sri Lanka Accounting & Auditing Standards. • Outcome: The systematic sharing of information will significantly strengthen regulatory activities, leading to enhanced financial stability and greater accountability in the financial sector.
⚙️ Sri Lanka Moves to Digital Tax: RAMIS Upgrade Approved!
• The Cabinet has approved the engagement of Singapore-based NCS Solutions Ltd. to upgrade the Inland Revenue Department’s (IRD) Revenue Administration Management Information System (RAMIS). • Key Feature: The upgrade will introduce a secure Web API facility for VAT-registered individuals, enabling more efficient interface with digital tax systems. • Strategic Goal: This is the critical initial stage toward implementing a full electronic invoicing (e-invoicing) system in Sri Lanka. • Context: The move aligns with global trends aimed at modernizing tax administration to enhance transparency, curb evasion, and streamline business transactions. • Proposal was presented by President Anura Kumara Dissanayake in his capacity as the Minister of Finance.
🚨 Customs Automation Boost: SLC extends UNCTAD ASYCUDA pact until 2027 📈
• Sri Lanka Customs (SLC) has renewed its technical assistance agreement with the United Nations Conference on Trade and Development (UNCTAD) to further enhance its automated revenue collection system. • The Cabinet approved the sixth addendum to the partnership, extending UNCTAD's support until June 2027. • The decision ensures continuity in modernising customs operations and improving automation for faster, more efficient service delivery. • The move aligns with structural reforms (dating back to IMF recommendations in 1991) focused on automating customs processes using the ASYCUDA system. • The renewed pact includes two specialised training programs for SLC staff, focusing on enhancing functions of the ASYCUDA World system, ASYCUDA, and ASYHUB platforms.
🌪️ Cyclone Ditwah Aftermath: Sri Lanka Faces Call for Structural Reform
• Catastrophic Impact: Cyclone Ditwah, which struck on 27 November, caused widespread flooding, catastrophic landslides, leaving hundreds dead, many missing, and millions displaced, marking it among the most severe disasters in recent memory. • Systemic Failures: The crisis exposed major weaknesses in institutional preparedness, urban planning, and the lack of strict enforcement of land-use regulations. Many of the worst-hit properties were located in warned floodplains and slopes. • Private Sector Conduct: "Some" companies faced criticism for prioritizing commercial activities (e.g., Black Friday sales) over employee safety, failing to implement WFH or allow early departure. Traders were also noted for accruing profits on essential food items. • Relief & Solidarity: Rescue and recovery efforts were mounted by tri-forces, Police, and volunteers. Regional support was rapid, notably from the Indian aircraft carrier INS Vikrant, providing helicopters and relief supplies. • Path to Resilience: The tragedy is a critical turning point, demanding structural reform—including rebuilding infrastructure to higher standards, integrating climate risk into national planning, and enforcing accountability—to ensure future storms are less destructive.
SL Disaster Relief: Radical Shift Towards Transparency & Accountability 📈
The government's response to the 2025 Cyclone Ditwah disaster relief marks a radical departure from the 2004 Tsunami era, prioritizing discipline, integrity, and public trust. • Tsunami 2004 Governance Failure: The past was marred by fragmentation, absence of a centralized mechanism, politicization of aid distribution, and misappropriation of hundreds of thousands of dollars’ worth of aid (Auditor General’s findings). Funds often bypassed the Central Bank, weakening economic stability. • Current Accountable System (2025): The Ministry of Finance and Economic Development (MOFED) and the President’s Media Division (PMD) issued clear, published instructions on Nov 29, 2025. • Key Mechanism: All domestic and international contributions must be routed through designated Central Bank accounts. • Strategic Benefits: This centralized system ensures full transparency, sets out clear auditing and oversight requirements, and strategically strengthens Sri Lanka’s foreign reserve position during the emergency. • Goal: The new framework aims for a response that is audited, traceable, serves citizens equally, and functions above party politics, rebuilding the public trust lost two decades ago. • Donor Note: All donors must strictly follow MOFED/PMD guidelines to ensure funds reach the intended beneficiaries and uphold credibility.
🇱🇰 MSME Recovery Blueprint: Essential for Post-Cyclone Economic Resilience
• Micro, Small & Medium Enterprises (MSMEs) are the backbone of Sri Lanka's economy, accounting for over 90% of all enterprises, contributing ~52% to GDP, and providing ~45% of employment. • Cyclone Ditwah and subsequent flooding threaten thousands of these businesses, which were already severely weakened by the COVID-19 pandemic, the 2022-23 economic crisis, and high interest rates. • A comprehensive, three-phase policy blueprint is urgently required to prevent a deep collapse and secure economic recovery: Phase 1: Immediate Relief • Focus on rapid, targeted unconditional grant support for businesses in disaster-hit divisions. • Implement temporary tax deferrals, penalty waivers, and fast-track VAT refunds. • Central Bank/Banks to provide short-term loan moratoriums and necessary regulatory flexibility. Phase 2: Recovery & Reconstruction • Introduce concessional "build-back-better" credit lines with below-market rates for replacing assets and premises. • Utilize Government public procurement with temporary preferences for affected local MSMEs. Phase 3: Building Long-Term Resilience 📈 • Integrate MSME resilience as an explicit objective in national disaster-risk planning. • Develop affordable, risk-sharing mechanisms like index-based insurance and group schemes. • Promote green and climate-resilient MSME investment through tax incentives and specialized loan products. • The proposal emphasizes that acting decisively now is critical to convert tragedy into a turning point towards a more resilient and sustainable economy.
New Duty-Free Mechanism for Overseas Disaster Relief Donations 🚨
• The Government has introduced a streamlined procedure to expedite the clearance and distribution of essential material aid donated from abroad due to the current disaster. • This mechanism allows all material aid to be cleared free of all tariffs and charges (duty-free clearance), encouraging foreign countries, organizations, individuals, and Sri Lankans abroad to donate. • Key Condition for Duty-Free Status: All goods must be addressed directly to: The Secretary, Ministry of Defence, Disaster Management Centre (DMC), Vidya Mawatha, Colombo 07. • If addressed to another local party, that party must agree to hand the donation over to the DMC to qualify for duty-free status; otherwise, normal customs procedures will apply. • Material assistance is permitted via any mode of transport. • Guidelines & Essential Goods List: Available at www.customs.gov.lk and www.donate.gov.lk. For further details, contact the hotline: +94 70 475 2823.
Royal College 'SAGA 2025' Fundraiser Under Scrutiny Over Alleged Financial Malpractice
• Royal College alumnus Padmasena Dissanayake has sent an Open Letter to Prime Minister/Education Minister Dr. Harini Amarasuriya, raising alarms over the collection of money for the "SAGA 2025" event organised by the School Development Society (SDS). • Allegations suggest the school administration and organisers are treating the PM's directive against unauthorised collections as "mere words," questioning if the institution is above the law. • Key Financial Irregularities Alleged: • Money is reportedly not being collected through official SDS bank accounts, leading to a complete lack of transparency and zero accountability. • No receipts are issued for these collections. • Allegations also point to the bypassing of standard procurement guidelines for costumes, with organisers opting for a single supplier. Dissanayake suggests the procurement decision was allegedly delayed intentionally to justify a shortcut around tender procedures. • Parents are reportedly forced to sign a "declaration of willingness," which frames the mandatory fee (Rs. 4,000 to Rs. 6,500 per costume for over 600 students) as a voluntary contribution. Parents remain silent due to fear of victimisation of their children. • The letter urges the Prime Minister to intervene immediately to rectify the situation.
🎥 President Dissanayake Offers Solutions to Film Industry Issues 🤝
• President Anura Kumara Dissanayake met with film distributors and producers to address their unresolved issues and provide "reasonable solutions." • The President stated that Sri Lankan audiences must be given the opportunity to watch international films while ensuring the domestic industry is safeguarded, citing cinema's contribution to spiritual and cultural development. • Key issues discussed included irregularities in Value Added Tax (VAT) payments and limitations faced in expanding the industry. • Film industry representatives reported achieving their highest-ever revenue in history in 2025 and requested continued government support to sustain this growth.
💎 Cabinet Approves Major Reforms to Boost Sri Lanka's Gem Industry 📈
The Cabinet of Ministers has approved a series of regulatory measures aimed at promoting the nation's gem industry by streamlining imports and simplifying taxation. • Key Approvals: Orders and regulations published in recent extraordinary gazettes to facilitate the import and taxation of genuine and semi-genuine gemstones were sanctioned. • Taxation Changes: • Value Added Tax (VAT) calculation on imported gemstones will now be based on their weight, a shift approved under the VAT Act. • New national sub-division customs codes were introduced via a Revenue Security Order, enabling the weight-based VAT application. • These new customs codes will also be used in relation to continued exemptions from Ports and Airport Development Taxes (PADT). • Impact: These steps are expected to streamline gemstone imports, simplify the taxation process, and reinforce Sri Lanka’s standing as a key player in the global gem market. • Source: The proposal was presented by President Anura Kumara Dissanayake in his capacity as Finance Minister.
📰 Colombo Port City Act Amendments Approved
• The Cabinet of Ministers has approved the publication of the amended Colombo Port City Economic Commission Act No. 11 of 2021 draft bill. • This approval relates to publishing the draft in the government gazette. • The clearance paves the way for the amended bill to be officially presented to Parliament for further proceedings.
Govt Weighs Curbs on Rice Imports to Boost Paddy Production 🌾
• The Government is considering stricter limits on rice imports and establishing a more formalised system for purchasing domestic paddy production. • The initiative aims to raise paddy output, stabilise prices, and strengthen protection for farmers. • Key policy discussions involved: • Maintaining a fixed purchasing price for paddy to prevent unfair practices. • Reviewing fertiliser subsidy prices against global trends. • The need for upgrading storage and drying facilities. • Officials were directed to provide district-level cost-of-production data to finalise new guaranteed price policies. • The administration plans to support all farmers through consistent policies, addressing a historical lack of mechanisms for other crops compared to paddy. • Urgent requirements were noted for state agencies, including filling key vacancies and addressing shortages of vehicles and equipment.
📈 SL-Luxembourg DTA Amendment Approved by Cabinet
• The Cabinet of Ministers approved the signing of a protocol to amend the existing Double Taxation Agreement (DTA) with Luxembourg. • The primary goal of the amendment is to ensure full compliance with the minimum standards of the G20–OECD Base Erosion and Profit Shifting (BEPS) Project. • Both Sri Lanka and Luxembourg are members of the BEPS Inclusive Framework, necessitating these revisions to the original 2013 DTA. • The proposal, submitted by the President as Finance Minister, allows the countries to proceed with signing the cleared amended protocol in due course. 🇱🇰🤝🇱🇺
BOI Import/Export Facilitation Shifts to Sri Lanka Customs 📈
• Sri Lanka Customs (SLC) is set to take over the import/export facilitation processes for Board of Investment (BOI) firms via a pilot project starting May 2026. • The move follows an MOU between BOI and SLC, with the 3-6 month pilot project scheduled to commence at the Katunayake Free Trade Zone (KFTZ). • Rationale: This is part of the Government’s commitment under the IMF's revenue-based fiscal consolidation framework, aiming to curb significant revenue leakage. • Leakage stems from extensive tax concessions and reported misuse of import/export facilities by BOI firms (e.g., illegal local sales). • BOI corporate tax exemptions were reported to have caused a loss of Rs. 23.94 Billion in corporate taxes to the Government in 2022. • Concerns: The change comes after the recent abolition of SVAT, causing unease among the business community. • Investors have expressed reservations, citing concerns about potential supply chain disruptions and the perceived rampant corruption/control focus within Customs. • While SLC has launched initiatives like the Authorised Economic Operator (AEO) Program to enhance facilitation, business confidence remains a factor.
FCCISL Unveils 5-Point Strategy for Economic Recovery & B-READY 2026 📈
• The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) presented five strategic Budget proposals for 2026, aimed at accelerating economic recovery and preparing Sri Lanka for the World Bank's Business Ready (B-READY) Index 2026. • The plan, based on the PwC–FCCISL Business Resurgence Study, focuses on modernising institutions and strengthening the private sector to transform the business environment. • Key Proposals: • Public Service Transformation Fund: Decisive national shift towards streamlined, automated, and performance-driven public services through process re-engineering and digital integration to reduce bureaucratic barriers. • Strengthened SME and Business Resurgence Mechanism: Integrated, district-level support for SMEs to access fast-tracked approvals, digital services, and dispute resolution, restoring 'real economy' momentum. • GovData-SL: Creation of a unified national digital data platform for transparent, evidence-based policymaking, tracking regulatory performance, and verifiable B-READY reporting. • National Business Reform and Facilitation Council (NBRFC): Proposed under the Finance Ministry to coordinate reforms, harmonise regulations, and accelerate cross-ministerial decisions. • District-Level Entrepreneurship Program: National model to strengthen regional competitiveness, support local SMEs, and facilitate investment through integrated, digitalised district administration. • FCCISL is calling for broad national and international partnership to implement the reforms, enhance predictability, and reposition Sri Lanka as an investment-ready economy.
📈 THASL Urges Stronger Global Branding & Policy Reforms for Tourism Sector
The Hotels Association of Sri Lanka (THASL) outgoing President M. Shanthikumar called for immediate policy changes to safeguard the sector’s future, highlighting the formal hotel industry's crucial economic contribution: • Sector Impact: • The formal hotel sector is the largest private-sector contributor to tourism development, revenue, and employment. • Hotels employ over 70% of the nation’s tourism workforce. • Total investments by member hotels exceed US$ 15 Billion over the past 60 years. • The sector generates the highest tax and levy income to the Government from the private sector. • Outlook & Key Demands: • Tourism is confidently forecasted to surpass its all-time record arrivals by the end of 2025. • Global Promotion: An urgent call was made for a strong global destination-marketing campaign to compete and ensure high foreign exchange earnings, warning against mere volume growth. • Diversification: Faster development of the MICE segment is needed to absorb Colombo's room inventory and target a 25% contribution to overall arrivals. • Policy & Regulation: THASL urged for robust regulatory frameworks covering licensing, taxation, foreign exchange compliance, and the registration of all accommodation units. • Long-term Sustainability: Shanthikumar pressed for formally designating tourism as a 'service export' and encouraging foreign investment through investor-friendly policies.
📈 Sri Lanka Greenlights Digital TV Shift: New Analogue Licences Halted
• Major Policy Step: Cabinet has approved the immediate halt on issuing new terrestrial analogue television licences, accelerating the country's long-delayed transition to digital broadcasting. • Rationale: The current analogue system, used by 24 channels (including 5 State-owned), has reached its maximum spectrum capacity, making further expansion impractical. • Digital Project: The Mass Media Ministry initiated the "Digital Non-territorial Television Broadcasting Project," aiming to establish a unified digital terrestrial platform to replace 46 existing analogue systems. • Timeline & Support: Full project implementation, supported by an agreement with Japan, is expected by 2029. The analogue switch-off is planned for two years after the project's completion. • Regulatory: Frequency allocation responsibilities have been transferred to the Telecommunications Regulatory Commission of Sri Lanka (TRCSL). • Public Impact: No new fees will be imposed on the public for the transition, though viewers may need to purchase compatible devices. The digital shift will also free up valuable frequency spectrum for new channel opportunities.
🚨 SEC Issues Urgent Scam Alert: Blue Ocean Securities Unlicensed!
The Securities and Exchange Commission (SEC) of Sri Lanka has issued an urgent warning regarding Blue Ocean Securities Ltd: • The company is NOT licensed by the SEC and has no authority to trade in securities in Sri Lanka on behalf of investors. • Its Chief Analyst and assistant are also not registered investment advisors. • The entity is also not licensed or authorized by the UK Financial Conduct Authority (FCA). • Investor Alert: Strongly advised NOT to engage in any transactions with the company, deposit money, or join its associated WhatsApp/communication channels. • Action: Regulatory measures are currently being taken by the SEC and other law enforcement authorities. • Key Reminder: Investors must only deal with licensed stockbrokers and open a CDS account before engaging in any securities transactions. Check the SEC or CSE websites for the list of licensed brokers.
Treasury Tightens SOE Spending & CSR Rules from 2026 📈
The Treasury has introduced a revised framework (Circular No. 01/2025), effective 1 January 2026, to strengthen financial discipline and transparency in State-Owned Enterprises (SOEs) regarding non-core expenditure. • Spending Cap: Annual expenditure on sponsorships, donations, CSR, and indirect promotional activities is strictly capped at 1% of the SOE’s actual recurrent expenditure from the previous financial year. • Funding Prohibition: Treasury budgetary provisions are strictly prohibited from being used for any such spending. • Financial Contribution: SOEs must remit a minimum of 30% of profit after tax annually to the Consolidated Fund and are encouraged to declare interim dividends based on quarterly performance. • Strategic Alignment: Boards must ensure all expenditures are non-political, non-personal, justified, and fully aligned with the Government's broader national development agenda. • Governance & Reporting: New mandatory requirements include submitting quarterly expenditure summaries and maintaining a dedicated internal register for audit purposes.
⚖️ SL Judiciary: Historic Digital Transformation Underway
• The Supreme Court of Sri Lanka has introduced the first-ever use of a Digital Signature in the country's Judiciary for the President’s Counsel Oath Ceremony. • This marks a historic step in modernizing judicial operations, building on the already-launched web-based Case Management System (CMS). • Immediate Impact: The digital signature process will be used for the oath ceremonies of 532 newly enrolled Attorneys-at-Law, commencing 21 November 2025. • Future Rollout: The crucial e-Filing system will be initiated in a phased manner starting in 2026, allowing Attorneys-at-Law to file applications electronically. This system is planned to expand progressively to courts island-wide. • The court is committed to enhancing transparency, accessibility, convenience, and efficiency across the Justice system.
📝 SL Parliament Reviews Draft Bill to Regulate Microfinance Sector
• Parliamentary committees, including the Sectoral Oversight Committee on Economic Development and the Women Parliamentarians’ Caucus, reviewed the draft Bill to establish the Microfinance and Credit Regulatory Authority last week (Nov 20). • Primary Objective: Create a formal Authority to oversee money-lending and microfinance activities, strengthen customer protection, and repeal the existing Microfinance Act of 2016. • The updated draft incorporates amendments ordered by the Supreme Court and other policy revisions, with the Bill now expected to be presented to Parliament. • Key Committee Concern: The proposed Board of Directors lacks representation for microfinance customers, who are directly affected by the regulatory framework. • Members stressed the disproportionate debt burden on women and proposed adding a representative from the National Commission on Women or a relevant ministry to the Board. • Committees emphasised that the legislation's core purpose must be to prevent severe indebtedness and community crises through firm regulatory oversight. • Officials from CBSL and the Treasury were instructed to incorporate these necessary amendments prior to the Bill being tabled.
🌾 Policy Reset: Lanka Pushes Shift from Input Subsidies to Output Incentives
• Core Reform: A significant shift is proposed in agricultural policy from providing costly input subsidies (like cheap fertiliser) to a digital Output-Based Aid (OBA) system, which rewards verified production results. • Current Issue: Input subsidies breed farmer dependency, distort markets, and create a "break-even trap," causing paddy farmers to settle for lower yields and inefficient practices. This also results in significant leakages of public funds. • Proposed Solution: A National ICT Platform utilizing QR codes and IoT-enabled digital scales will track paddy production sales to buyers. • Farmer Incentive: Farmers would receive a direct cash payment, e.g., Rs. 10 per kg sold. This is approximately double the support compared to the estimated Rs. 5/kg value of the current typical Rs. 10,000/acre fertiliser subsidy, directly benefiting high-producing farmers. • Triple-Win Advantage: • Farmers: Performance-based, dignified earnings rewarding efficiency and modern methods. • Government: Real-time data on food stocks and land use for smarter policy and import decisions. • Economy: Taxpayer money is released only upon actual food production, reducing corruption and fiscal leakage. • Outlook: The system aims to treat farming as a business, making it more profitable for productive cultivators and strengthening national food security.
🚨 New Cyber Scam Alert: 'Pig Butchering' Targets Sri Lankans
• Scammers recently solicited Sri Lankans for a small investment of Rs 75,000 (approx. US$ 250) via bot-related postings, promising high returns ($7,500+ monthly) from an algorithmic platform. • The scheme used AI-generated (deep-fake) videos cloning the voices and likenesses of the President, Prime Minister, and leading businesspersons to appeal to gullible investors. • While original fake videos were removed by Facebook, new versions with cloned voices of other business figures have since appeared, indicating the threat is ongoing. • This 'Pig Butchering' (Sha Zhu Pan) scam is a form of social engineering where victims are 'fattened' with false initial returns before their entire investment is stolen. • The rise in such cybercrime poses economic challenges, as it siphons off valuable foreign exchange from the country, and erodes public trust in financial institutions. • Targeted victims are often educated young professionals with a "blind faith in AI" and a desire for quick wealth. Citizens must be proactive in verifying investment opportunities to avoid becoming a victim.
💊 SL Health Ministry Reinstates & Expands Medicine Price Controls
• Health Minister Dr. Nalinda Jayatissa announced the successful reintroduction of price controls for 350 essential medicines this week, utilizing the National Medicines Regulatory Authority (NMRA) powers. • The Ministry is now considering expanding the regulatory framework to cover an additional 200 varieties of medicines. • Significant price reductions have been implemented across categories including cancer, diabetes, hypertension, and paediatric illnesses: • Cancer drug Paclitaxel (100mg/vial) reduced from approximately Rs. 42,000 to Rs. 26,332. • Nimodipine IV Infusion (for paralysis patients) reduced from Rs. 6,348 to Rs. 4,100. • The move aims to reverse the impact of excessive charges by private pharmacies and hospitals following a temporary halt in controls in December 2023. • The State Pharmaceuticals Manufacturing Corporation (SPMC) also introduced new locally manufactured medicines this year to boost affordable supply, including Celecoxib 200 mg (min. Rs. 17.60) and Sitagliptin 100 mg (cap Rs. 32).
Softlogic Trading Suspension Deferred by SEC Until End-2025 📈
• The Securities and Exchange Commission (SEC) has postponed the suspension of trading in Softlogic Holdings PLC shares until 31 December 2025. • This ruling defers the scheduled suspension, which was initially due on 1 December, allowing the shares to continue trading on the Colombo Stock Exchange through next year. • The regulatory action stems from independent auditors flagging going-concern issues in the company's reports for the FY ended March 2022 and March 2023. • Financials (6 months to 30 Sept 2025): • Consolidated Loss: Rs. 3.1 Billion, showing a 48% contraction from the Rs. 6 Billion loss reported a year ago. • The group reported a Net Liability per share of Rs. 44.78 at end September 2025. • Total Assets were Rs. 196.2 Billion, with Revenue Reserves at a negative Rs. 87 Billion. • Total Interest-Bearing Borrowings stood at Rs. 57 Billion (Current portion: Rs. 15 Billion).
🇮🇳-🇱🇰 Financial Sector Cooperation: India's FATF Delegation Completes Second Phase Training 📈
• A delegation from India’s Financial Action Task Force (FATF) Cell, including experts from FIU, RBI, SEBI, and IRDAI, visited Sri Lanka from November 12–14, 2025, for the second phase of a capacity-building program. • The training targeted officials from the Central Bank of Sri Lanka (CBSL), Securities and Exchange Commission, Insurance Regulatory Commission, and representatives from private financial institutions. • Key sessions focused on strengthening financial sector supervision, regulatory coordination, supervisory practices, and emerging financial system challenges through experience-sharing and case studies. • The delegation also met CBSL leadership to discuss ongoing cooperation, including the regulatory framework for Virtual Asset Service Providers (VASPs) and India's insights on digital payments. • This visit follows earlier engagements in October, with the overall goal being to enhance bilateral collaboration, improve regulatory preparedness, and ensure alignment with global standards.
🚨 SEC Sounds Alarm Over Unauthorized Investment Tips on Social Media
• The Securities and Exchange Commission of Sri Lanka (SEC) has issued a strong warning to social media users (including platforms like X) regarding the sharing or following of unlicensed investment recommendations. • Legal Mandate: Only Registered Investment Advisors or bodies officially licensed by the SEC are permitted to issue investment-related guidance. • Strict Penalties: Individuals who violate Part 5 of the SEC Act risk prosecution before the High Court. • Minimum Fine: Penalties include a fine of at least Rs. 10 million, imprisonment of up to ten years, or both. • Investor Protection: This action is part of the SEC’s ongoing effort to protect the interests of investors and maintain market integrity.
🚨 CBSL Naming: 23 Prohibited Pyramid Schemes Alert
• The Central Bank of Sri Lanka (CBSL) has declared 23 entities/apps as prohibited pyramid schemes following investigations under the Banking Act. • Confirmation & Naming: The CBSL confirmed that SGO/sgomine.com was operating a pyramid scheme and identified a further 22 entities running similar operations. • Key Examples Listed: OnmaxDT, MTFE App and its associated groups, Tiens Lanka Health Care Ltd., Best Life International Ltd., Sport Chain app, Fastwin Ltd., Fruugo Online App, and Qnet/Questnet. • Warning: CBSL strongly cautioned the public to exercise due diligence and avoid engaging with these entities, citing risks of substantial financial losses and broader economic instability.
SLAASMB Flags Persistent Gaps in Financial Reporting Quality 📉
The Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) 2024 Regulatory Activity Report highlights ongoing weaknesses in financial reporting across the economy. • Nearly half of the reports reviewed require improvement: Of 388 financial statements from 381 economically significant enterprises (SBEs), 49% were not fully compliant with Sri Lanka Accounting Standards (LKAS). • Compliance issues spanned several core areas: • Incomplete risk disclosures, including inadequate maturity analyses of financial liabilities. • Weak impairment assessments (SLFRS 9/LKAS 36) and insufficient details on valuation techniques and fair value hierarchy. • Missing or insufficient disclosures on tax reconciliations, related-party transactions, and depreciation policies. • The review coverage increased sharply to 388 statements in 2024 (from 261 in 2023), with approximately 62% from regulated entities. • Audit oversight noted: The SLAASMB inspected 22 audits (up from 16), finding that 3 required improvements due to deficiencies in areas like audit planning, risk assessment, and evidence gathering for revenue/inventory. • Submission trend: Filing rates for annual reports are recovering, with 1,517 SBEs submitting statements in 2024 (vs. 1,194 in 2020). The regulator stressed that these recurring disclosure and measurement omissions directly affect the reliability of financial statements.
📈 Cabinet Boosts Green Gram Procurement: Rs. 764M Allocated
• Cabinet has approved an allocation of Rs. 764 million to expand the Government's green gram procurement program. • The initiative is designed to purchase the harvest in competition with the private sector to ensure farmers receive a fair price. This follows reports of middlemen purchasing at low rates (e.g., Rs. 450/kg) in districts like Hambantota. • Under the 2025 Green Gram Program, cultivation covered approximately 16,500 hectares during the Yala and intermediate seasons. • The expected yield is about 14,600 tons, with roughly 12,000 tons anticipated to reach the local market. • The National Food Promotion Board is implementing direct purchases from farmers, acting on the advice of the Ministry of Agriculture.
🇱🇰 Motor Traffic Fee Update: New Levies for Foreign Driving Licence Holders 📈
• The Transport Ministry has announced revisions to the Motor Traffic (Driving Licence Levy) Regulations of 2022, effective immediately via Gazette No. 2463/04. • Key Charges for Obtaining a Local Licence: • Sri Lankan citizens holding a foreign licence: Rs. 30,000. • Non-citizens converting an overseas licence to a Sri Lankan one: Rs. 60,000. • A new series of additional charges have been introduced for non-citizens and short-term visitors for services like renewals, duplicates, and temporary licences, ranging from Rs. 15,000 to Rs. 45,000, depending on the type and duration. • The Ministry states the adjustments reflect current policy requirements and aim for improved revenue administration.
🐔 Level Playing Field Needed for Poultry Exports: Maize Policy Reforms Demanded
• The technologically advanced poultry industry is stagnant, operating below capacity and unable to enter export markets due to high production costs. • Core Issue: Maize, which accounts for over 50% of broiler feed, is uncompetitive. Domestic maize averages ~Rs. 150/kg, far above imported options (e.g., India landed at ~Rs. 96/kg). • Policy Barrier 1 (SCL): Imported maize is subject to a Special Commodity Levy (SCL) of Rs. 25/kg, a non-recoverable direct cost that artificially inflates prices. • Policy Barrier 2 (Quota): Import quotas create artificial shortages, elevate market prices, and block feed mills from securing globally competitive rates. • Industry Request: Remove the SCL on maize and bring both imported and local maize under the VAT system—a neutral, creditable tax already applied to sectors like coconut oil and fabric to eliminate market distortions. • Goal: Relaxing quotas and removing SCL is essential to lower production costs, stabilise the market, allow full capacity operation, and enable the sector to pursue foreign exchange earnings as a regional exporter. • Consumer Benefit: Reforms would also help reduce consumer prices for chicken and eggs, key affordable protein sources.
SL's PPP & SOE Reforms: Ambitious, but Credibility Hinges on Execution 📈
Deloitte partners affirm Sri Lanka's new draft PPP law and SOE restructuring (led by CEB unbundling) are ambitious reforms, crucial for drawing private capital into infrastructure. • Investor Requirements: To attract global funds (pension, sovereign, Middle Eastern capital), projects must be structured at scale, typically requiring a minimum US$ 50-100 Mn ticket size per project. • Core Concern: Exchange rate risk remains a central worry for investors, following the sharp rupee depreciation which eroded dollar returns on long-term assets. Currency stability is key. • Credibility Test: Investor confidence hinges on the quality and execution of the first wave of PPPs—specifically, clear feasibility studies, proper risk allocation, and defined deliverables. • SOE Benchmark: India's reforms show the fiscal upside: ~300 listed SOEs now rival private sector profits and require mandatory dividend payouts of at least 2% of net worth annually. CEB's unbundling is SL's most ambitious SOE initiative. • Priority Sectors: Sectors best suited for PPPs include energy transition, ports, logistics, and user-pay sectors (e.g., renewables, toll roads). • Foundation: Stable macroeconomic conditions, regulatory clarity, and policy consistency are critical for long-term private capital commitment. 🇱🇰
🛡️ CUBA Warns Against Rushing Tariff Dismantling
• The Ceylon United Business Alliance (CUBA) urges Sri Lanka not to dismantle tariffs or para-tariffs under the new Economic Stabilisation Act until the nation's foreign exchange (forex) reserves secure a sustainable and safe threshold. • CUBA argues that unilateral liberalisation amid severe forex pressures risks inviting a surge of cheap imports, weakening the rupee, and undermining domestic industries. • The current tariff policy is highlighted as "economically indefensible" due to extreme unevenness: Politically connected sectors (hardware, building materials) face very high para-tariffs (40-75%). • In contrast, a major domestic consumption sector, clothing (worth over US$ 2 Bn annually), remains severely under-protected with para-tariffs of only 5-10%. This disparity must be corrected immediately. • Policymakers are urged to introduce WTO-compliant non-tariff barriers, including quality standards and safeguard clauses, ensuring protection while linking tariff liberalisation directly to a clear foreign reserve threshold.
🎬 Cabinet Greenlights New Film Council: Modernising Sri Lanka's Cinema Sector
• The Cabinet of Ministers has approved a draft bill to establish the Sri Lanka National Film Council (SLNFC), repealing the nearly five-decade-old Sri Lanka National Film Corporation (NFC) Act No. 47 of 1971. • This institutional overhaul aims to modernise cinema regulation and promote film culture, updating the framework to reflect significant changes in technology, society, politics, and the economy. • The new Council is mandated to strategically oversee and regulate the film industry, ensuring both the safeguarding of cinematic heritage and the fostering of innovation in production, distribution, and exhibition. • This reform is part of broader efforts to modernise the arts and cultural sectors, creating an enabling environment for local filmmakers.
🔬 Cabinet OKs 5-Year Vidatha Plan (2026–2030) to Boost Rural Technology & Innovation
• The Cabinet of Ministers approved a comprehensive five-year strategic plan (2026–2030) for the Vidatha program. • Goal: To empower rural communities across the country by leveraging scientific research and technology innovation, operating under the core concept of "Technology for Villages." • The plan aims to reinforce the Vidatha initiative, which currently runs 315 Vidatha Centres island-wide. • Key Strategy: Vidatha Resource Centres will be transformed into microservices, collaborating with bodies like the National Enterprise Development Authority (NEDA) and the Industrial Development Board (IDB). • Implementation: A significant step involves deploying a dedicated science graduate to each of the 315 centres to strengthen local technology access and support rural innovation, enhancing scientific literacy in village communities.
🏏 Pakistan Fined for Slow Over-Rate in 1st ODI vs. Sri Lanka
• The Pakistan cricket team has been fined 20% of their match fee following the first One Day International (ODI) against Sri Lanka in Rawalpindi. • The penalty was imposed by Match Referee Ali Naqvi for maintaining a slow over-rate. • Shaheen Shah Afridi’s side was ruled to be four overs short of the target after all time allowances. • In accordance with ICC rules (Article 2.22), players are fined 5% of their match fee for every over their side fails to bowl in the allotted time. • Captain Shaheen pleaded guilty to the offence and accepted the sanction, negating the need for a formal hearing.
📈 Treasury Debunks SME Funding Critics; Confident in Higher 2026 Revenue
• The Treasury Secretary affirmed that Government-led initiatives for SMEs are progressing faster than perceived. • Credit Guarantee Scheme: The National Credit Guarantee Institution (NCGI), launched in May 2025, has already issued Rs. 4.2 Bn in credit assurances to SMEs within five months. This figure is four times higher than recent public perception. • SME Allocation: Over 90% of the Rs. 20 Bn allocated for SME support in 2025 has been disbursed. • Banking Sector Support: Private sector banks are strongly engaged, with several major commercial banks disbursing hundreds of billions in SME financing (e.g., one major bank portfolio exceeds Rs. 300 Bn). • 2026 Revenue Outlook: Officials anticipate a significant increase in 2026 revenue, based on the soaring number of Letters of Credit (LCs) opened for vehicle imports. • Reforms: Revenue administration and digital modernization programs are underway, with confidence that targets can be met—and possibly exceeded—due to momentum and cultural transformation in the public sector.
📈 Cabinet Clears Drafting of Key Investment Protection Bill
The Cabinet of Ministers has approved instructing the Legal Draftsman to draft a new Investment Protection Bill (also referred to as the Investment Security Bill). This move follows a proposal introduced in the 2025 Budget. • Core Objective: The proposed law seeks to explicitly prevent the arbitrary nationalisation of private enterprises and assets, aiming to ensure long-term policy stability for both domestic and foreign investors. • New Mechanism: It mandates the establishment of an Investment Protection Board to provide a structured and transparent mechanism for resolving investment-related disputes. • National Context: The Government views the legislation as a critical step to enhance policy predictability, strengthen investor confidence, improve the country's ease of doing business ranking, and attract sustainable Foreign Direct Investment (FDI). • The proposal for the new Act was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.
🇱🇰 Digital Economy Progress Review: President Pushes for SLUDI & 500 New Towers 📈
• President Anura Kumara Dissanayake chaired the 2025 progress review for the Ministry of Digital Economy, focusing on projects under TRCSL, DRP, and GovTech. • The President emphasized establishing a solid foundation for government digital investments, a key component of the proposed 2026 Budget, while also addressing policy and administrative delays. • Digital Infrastructure & Investment: Measures were discussed to create a more conducive environment for private sector investors in digital infrastructure, including island-wide telecom tower construction. • Target Acceleration: President instructed expediting the "Communication to the Village" initiative, setting a target of 500 new telecom towers to be installed within three years. • Identity & Governance: Instructions were given to DRP officials to immediately resolve delays in issuing National Identity Cards (NICs). High priority remains on expediting the Sri Lanka Unique Digital Identity (SLUDI) project. • Further steps include establishing a new Digital Economy Authority and developing necessary human resources for a robust ICT/BPM enabled digital economy.
JKCG Secures Release of Detained BYD EVs via Court Agreement 🚗
John Keells CG Auto (JKCG) has provided an update on the detention of BYD electric vehicles by Sri Lanka Customs, following proceedings in the Court of Appeal: • Positive Outcome: Sri Lanka Customs agreed in Court (Nov 11, 2025) to release the currently detained 631 electric vehicles, which include BYD ATTO 1 and ATTO 2 models. • Release Terms: The vehicles will be released under agreed guarantee terms (Corporate and Bank Guarantees offered by JKCG) to cover the difference in alleged additional duties due. • Legal Context: This resolution follows two further Writ Applications filed by JKCG (Sept/Oct 2025) challenging the continued detention of the vehicles. • Ongoing Technical Dispute: JKCG reiterates that the globally accepted norm is to rely on the Manufacturer’s Certificate for vehicle clearance. The dispute centers on verifying the motor power of the electric vehicles. • Verification Status: JKCG offered to provide technical equipment and made available a Vehicle Diagnostics Service (VDS) on Nov 6, 2025, but Customs did not conduct the testing on that date. Customs will notify the Court of the next steps regarding the testing. • JKCG is committed to fulfilling its obligations to customers following the release.
📈 WmB Coalition Drives Systemic Reform for Women-led MSMEs 🇱🇰
• The Women Mean Business (WmB) Coalition, convened by Chrysalis and supported by Co-Impact, held its 5th meeting, gathering over 80 stakeholders (Govt., finance, UN, entrepreneurs) to accelerate gender-transformative reforms in Sri Lanka's MSME sector. • The Coalition drives change across six key thematic areas, including policy reform, access to finance & markets, climate finance, and gender-based violence (GBV) mitigation. Chrysalis CEO stressed that Women-owned MSMEs are vital for inclusive growth. • Ministry of Industry announced a plan to deploy 600 trained relationship officers. These officers will guide high-potential SMEs for about two years, coordinating with agencies to improve their creditworthiness and sustainability. • UNDP committed to using evidence-based analysis to enhance gender-responsive policies, improving enterprise access to financing. • The meeting highlighted the need for increased support in districts like Mullaitivu and Kilinochchi, concluding with renewed commitments for joint advocacy and coordinated action.
Sri Lanka: 2024 Auditor General's Report Submitted to Parliament 📜
• The Annual Report of the Auditor General for the year 2024 was officially handed over to Speaker of the House Dr. Jagath Wickramaratne by Acting Auditor General G.H.D. Dharmapala. • This submission was made in accordance with the provisions of Article 154 of the Constitution. • The report compiles audits conducted on a large number of state institutions, including Ministries, Departments, Corporations, Boards, Authorities, statutory funds, non-statutory funds, and foreign-aid projects. • A significant focus included audits of State-Owned Enterprises (SOEs), Provincial Councils, and Local Government institutions, with individual reports having been previously submitted to Parliament throughout 2024.
SL Signs Hajj 2026 Agreement; Secures Quota 🤝
• Sri Lanka formally signed the agreement for the Hajj 2026 pilgrimage on Sunday, 09 November, in Jeddah, Saudi Arabia. • The official Hajj quota allocated to Sri Lanka under the agreement is set at 3,500 pilgrims. • The agreement was signed by the Sri Lankan delegation, led by Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, and Saudi Deputy Minister of Hajj and Umrah Dr. Abdulfattah Bin Sulaiman Mashat. • Minister Mulaffer conveyed appreciation for Saudi Arabia's arrangements for Hajj 2025 and reaffirmed Sri Lanka's commitment to close collaboration for a successful Hajj 2026. • Sri Lanka’s government is also taking measures to regularise national Hajj operations, including the drafting of the Hajj Act.
📈 SAGT CEO Outlines Keys to Successful PPPs & Investor Confidence
• South Asia Gateway Terminals (SAGT) CEO Romesh David highlights four critical factors for Sri Lanka to attract credible investors into Public-Private Partnerships (PPPs): 1. Clarity of Purpose: Full alignment and consistent communication across all Government agencies (e.g., finance, investment, port authorities). 2. Speed in Decision-Making: Warns the country cannot afford multi-year delays (2-5 years) for approvals if it is to remain globally competitive. 3. Fairness in Execution: Requires strict separation of roles—Government entities should not act as regulator, owner, and competitor simultaneously. • Role Separation: Stressing the importance of structural clarity, David noted that separating the roles of regulator, owner, and operator was key to SAGT becoming a globally recognised PPP model for Port/Terminal Operations. • Replication Failure: SAGT is cited by ADB/IFC as a textbook success, yet Sri Lanka has "failed to build on that success" by replicating the model in other essential sectors. • Urgency: Future PPP success depends on maintaining policy consistency, institutional coherence, and moving projects with urgency.
Major Shift: Sri Lanka Trims SDP Tax Holidays & Boosts Transparency 📈
The Government has published the Strategic Development Projects (Amendment) Bill, 2025, overhauling the investment incentive framework: • Tax Holiday Cut: The maximum tax holiday granted under the SDP Act has been drastically reduced from 25 years to a maximum of 10 years. • Enhanced Vetting: The BOI must now refer all SDP proposals to the Finance Ministry for a mandatory ex-ante cost-benefit analysis before granting concessions. • Transparency & Compliance: New rules introduce compulsory tax filing, disclosure of project outcomes, and ex-post monitoring of performance by the BOI. • Accountability: Tax benefits can be restricted, suspended, or revoked if an SDP project fails to meet approved performance indicators, following a show-cause process. • Fiscal Reporting: The Finance Ministry is mandated to publish an annual report detailing tax expenditures for all SDPs, promoting greater fiscal transparency. • Transition: Existing tax holidays granted prior to the amendment will remain valid for their original duration, provided conditions are met. The move aims to replace a culture of "cronyism" and "privilege" with "credibility" and "predictability" to attract quality investments, according to President and Finance Minister Dissanayake.
🇱🇰 Data Protection Authority Announces Key Posts to Establish Secretariat 📢
• The Data Protection Authority (DPA) of Sri Lanka has announced new leadership positions, including the Director General, following the recent unanimous adoption of the Personal Data Protection (Amendment) Bill. • These positions are essential for setting up the DPA Secretariat, which will implement the DPA's strategy and roadmap. • Establishing the full-time Secretariat is a major step to advance the national agenda on data protection and digital trust, which is vital for the growth and innovation in the digital economy. • The move is a prerequisite to determine the enforcement dates for the Personal Data Protection Act (PDPA). • DPA is recruiting highly skilled professionals across policy, compliance, cybersecurity, and IT to directly influence PDPA implementation and define the digital regulation landscape.
📈 SEC Stresses Accountability: Directors' Liabilities & Governance Overhaul
• Event Focus: The Securities and Exchange Commission (SEC) held a special session on "Directors' Liabilities" for over 150 directors of listed companies, emphasizing that the strength of the Capital Market lies in the "integrity of Boards." • Legal Risk: Under the Companies Act, directors face an extensive spectrum of legal exposure, including 37 civil and 131 criminal liabilities. The Solvency Test (Sec 57) was highlighted as the "golden thread" of corporate law. • Core Duties: Directors must act in good faith and the best interest of the company (Sec 187), exercise prudence/diligence, and be intimately familiar with their company's Articles of Association. • Compliance & Oversight: • Effective delegation is crucial for compliance, but implementation must be robust. • Boards must monitor early warning signs of financial distress (e.g., delayed financials, frequent restatements). Mandatory delisting results in a 3-year loss of 'fit and propriety' status. • Reliance on management information is compromised by late or ambiguous Board papers. • New Regulation: Listed companies face a strict obligation to disclose ultimate beneficial owner information to the Registrar of Companies via the CSE within 30 days of the new Companies Act No. 12 of 2025 coming into operation.
🛡️ CBSL Tightens Vehicle Loan Limits to Curb Imports & Financial Risk
• The Central Bank of Sri Lanka (CBSL) has reduced maximum Loan-to-Value (LTV) ratios for vehicle financing, effective 8 November 2025, as a macro-prudential measure to manage credit growth. • The decision aims to ensure prudent lending and follows the external sector recording its first current account deficit of 2025 in September, driven by soaring vehicle imports. • Key LTV Changes: • Commercial Vehicles: Reduced to 70% (down from 80%). • Motor Cars, Vans, & SUVs: Reduced to 50% (down from 60%). • Financing for other vehicle types is now 50% (down from 70%); three-wheelers remain capped at 50%. • Import & Sector Impact: • Vehicle imports surged to US$ 286 Mn in September, bringing the 9-month total to US$ 1.2 Bn. • CBSL has revised the 2025 vehicle import forecast upward to US$ 1.5 Bn. • Vehicle loans currently account for over 63% of the total loan portfolio of the finance company sector. • Transitional provisions apply to vehicles imported under Letters of Credit (LCs) opened prior to the new direction date.
📈 CBSL Proposes FBA Amendments: Public Input Requested
The Central Bank of Sri Lanka (CBSL) has invited public input on draft amendments to the Finance Business Act (FBA). These changes are designed to significantly reinforce the oversight mechanisms and resolution framework within the financial sector by focusing on three main areas: • Enhancing the regulation and supervision framework for licensed Finance Companies (FCs). • Strengthening the investigation and prosecution mechanisms for unauthorised finance businesses. • Streamlining the resolution and winding-up process for non-viable FCs. All stakeholders, industry participants, and the general public are invited to submit their views, suggestions, and comments by 30 November 2025. Feedback can be submitted via post, fax (011 2477738), or email to [email protected] (Subject: Views/Suggestions/Comments on the draft amendments to the Finance Business Act).
🇱🇰 JAAF Welcomes 2026 Budget Focus, Urges Policy Clarity for Exports 📈
• The Joint Apparel Association Forum (JAAF) welcomed the 2026 Budget's clear intent towards export-led growth, investment facilitation, and continued macroeconomic stability. • Commended positive steps like renewed focus on digitalisation, trade facilitation, enhanced capital allowances, and administrative reforms (Inland Revenue reform, RAMIS 3.0, E-invoicing). • JAAF stressed that policy execution, consistency, and clarity in implementation are crucial to translate commitments into tangible outcomes and drive confidence in the highly competitive global environment. • Key enablers urged for continued export growth include: ensuring stable energy costs, facilitating renewable adoption, enhancing logistics competitiveness, and aligning policy with sustainability goals/preferential market access requirements. • The industry reiterated its readiness to collaborate on a unified national export strategy supporting industries and the workforce.
Correction on NPC Constitutional Mandate (PPP Framework)
• A correction has been issued regarding a previous article on legal complexities within Sri Lanka's Public-Private Partnership (PPP) framework. • The error pertains to the constitutional reference for the powers vested in the National Procurement Commission (NPC). • The article incorrectly cited Article 161 of the Constitution. • Key Correction: The NPC's powers are correctly derived from Article 156 of the Constitution.
Budget 2026: Sri Lanka Ramps Up Reforms to Attract Global FDI 📈
• The 2026 Budget, presented by President/Finance Minister A.K. Disanayake, positioned Sri Lanka as an honest, "friendly country for investors," viewing them as an asset. • Core Goal: Significantly increase Foreign Direct Investment (FDI) through a transparent, rules-based mechanism. The medium-term economic growth vision is 7% (up from current 4-5%). • New Incentives/Policies: • Introduced a Residence visa system for foreign investors meeting minimum thresholds in priority sectors/eligible projects. • Amendments proposed to the Strategic Development Projects Act and Colombo Port City Commission Act to streamline FDI and enhance incentive transparency/consistency. • Regulatory Framework Strengthening: The government is replacing cronyism with credibility and predictability, and is fast-tracking key legislation: • Investment Protection Act (to be passed in early 2026). • Transparent legal framework for the Public-Private Partnership (PPP) Act (for approval in early 2026). • Investment Opportunities are highlighted across various sectors, including exports, digital & IT infrastructure, tourism, port & aviation, blue economy, energy, and agriculture.
📈 Industry Data Centralisation: NIIS Launched
• The Ministry of Industry and Entrepreneurship Development has launched the National Industry Information System (NIIS) in Colombo. • The NIIS is a new digital platform designed to centralise and manage critical information concerning Sri Lanka's economic and industrial activities. • Its key function is to boost data integration for better sector oversight.
📈 Sri Lanka Targets PPP Act and Key Investment Laws by Q1 2026
The Government is fast-tracking legal reforms to create a coherent framework for attracting private investment into public infrastructure, aiming to address procurement overlaps and boost investor confidence. • PPP Act Enactment: • The National Agency for Public–Private Partnership (NAPPP) aims to get the final draft of the PPP Act approved by Cabinet this month (Nov 2025) and enacted by January 2026. • This will be followed by new comprehensive PPP procurement guidelines. • Evaluation Tool: • A new Screening and Scoring Tool to professionally evaluate PPP projects is currently being developed and is expected to be ready by the end of Q1 next year (March 2026). • Investor Protection: • In parallel, a new Investment Protection Act is being drafted. The Government's goal is to have this legislation in place within Q1 next year to improve the investor climate. • Expert Caution: • A key warning was raised by experts at the forum, noting that the effectiveness of these multiple reforms could be undermined by existing institutional fragmentation and overlapping legal mandates if not urgently resolved.
📣 New Ethics Guidelines Proposed for Media Reporting on Women & Girls
• Verité Media and Politics (via Ethics Eye platform), in partnership with the French Embassy, has submitted recommendations to Mass Media Deputy Minister Kaushalya Ariyarathne. • The proposal outlines a national media guideline for ethical and survivor-centred reporting on women and girl-children. • Justification is based on Ethics Eye’s nearly decade-long monitoring, which documented problematic Sinhala media coverage that normalises violence and reinforces harmful stereotypes. • Key immediate actions recommended: • Draft and adopt a survivor-centred national media guideline and encourage adoption by all mainstream and digital outlets. • Allocate funds in the 2026 Budget for national training and capacity building on the new guidelines. • This effort supports the Government’s mandate to reform media ethics and align with international best practices.
🚨 KDK Brand Protection: Panasonic Secures Enjoining Order Against Counterfeiting
• Panasonic Ecology Systems Co., Ltd., the global leader in indoor air quality (IAQ) solutions, successfully secured an Enjoining Order from the Commercial High Court of Colombo. • The company instituted civil proceedings under the Intellectual Property Act No. 36 of 2003 against Zam Zam Electricals and Home Needs, a retailer in Kurunegala. • Allegation: The defendant was engaged in the sale of counterfeit ceiling fans unlawfully bearing Panasonic’s registered trademarks, specifically the well-known KDK name and logo. • Panasonic contended that the unauthorised use of identical or deceptively similar marks misleads consumers and capitalises unfairly on the goodwill associated with the brand, causing significant harm to reputation. • The High Court granted the Enjoining Order, which immediately restrains the defendant and its agents from producing, importing, marketing, selling, or otherwise dealing in any goods bearing names or marks confusingly similar to Panasonic's registered trademarks.
📈 Labour Unions Table Policy-Focused 2026 Budget Reforms
A consortium of 13 independent labour unions affiliated with the NLAC has jointly submitted policy-driven proposals for the 2026 Budget, marking a significant break from traditional demands for salary increments. • The focus is on labour policy reform, institutional accountability, and workers' rights, not financial benefits or handouts. • Governance & SOEs: • Demand forensic audits into major State-Owned Enterprises (SOEs) (e.g., State banks, CEB, CPC, SLT) and favour restructuring over privatisation to maintain essential public services and public ownership. • Insist on retaining the management of the EPF with the Central Bank of Sri Lanka (CBSL) to ensure worker trust and fund security. • Labour Protection & Social Security: • Call for the long-delayed Workers' Charter to be implemented and for labour law reforms to uniformly strengthen worker protections across all regions (e.g., no separate laws for Colombo Port City). • Propose a new social security scheme for gig workers (app-based/task-based), funded by a nominal Rs. 1 levy per transaction. • Recommend a contributory unemployment benefit plan for the private sector and ratification of key ILO Conventions on harassment. • Estate & Tax Reforms: • Highlight the need to improve estate worker welfare by settling unpaid provident fund dues, raising wages, upgrading housing, and granting 10 perches of land per worker. • Advocate for replacing indirect taxes on essential goods with progressive taxation on high incomes.
SL's PPP Framework faces 'Fruit Salad' Legal Confusion ⚠️
Expert warning highlights a critical need to streamline Sri Lanka's Public-Private Partnership (PPP) and procurement laws to avoid confusing investors and deterring investment 📈. • The Overlap: National Procurement Commission (NPC) Member Dr. Asanga Gunawansa flags a potential 'fruit salad situation' with four parallel entities claiming overlapping oversight: Finance Ministry (under PFM Act), Public Investment Committee (PIC), National Agency for PPP (NAPPP), and the revived NPC. • Legal Conflict: The recently enacted Public Finance Management (PFM) Act (Sections 40–45 deal with PPPs) stipulates that it will supersede other laws in the event of any conflict on the same subject. • NPC Powers: NPC guidelines now possess a Constitutional mandate under the 21st Amendment, giving them the "teeth of legislation," a major shift from previous practices. • Urgent Alignment: Stressed that mandates must be aligned now, before the forthcoming PPP Act is enacted, to prevent the confusion from multiplying, noting that relying on judicial review is impractical. • Translation Risk: Cautioned that legal misinterpretation is also risked by translation flaws, as the Sinhala version of the legislation legally prevails over the original English draft.
📈 Govt. Allocates Rs. 1 Bn for R&D Commercialisation Approach
The Cabinet has approved the 'Research and Development Commercialisation Approach' framework, allocating Rs. 1 Billion (Rs. 1 Bn) from Budget 2025 to fund and expedite high-impact projects. • Objective: To link research and innovation with national economic goals, converting research-based projects into viable commercial ventures. • Oversight: A dedicated R&D Commercialisation Unit is established under the Presidential Secretariat to evaluate projects based on technical, administrative, economic, social, and environmental impact. • Demand: The Unit has already received applications worth Rs. 2.2 Billion from local researchers and entrepreneurs. • Funding Structure: Selected projects are eligible for a maximum of Rs. 50 Million: • Up to Rs. 10 Mn as an initial feasibility-based grant. • The balance as a repayable loan component. • Repayment Terms: Loan must be repaid through 25% of the project’s annual net profit, following a one-year concessionary period. • Management: Disbursement and oversight will be jointly managed by the Bank of Ceylon and the Treasury's Development Finance Department.
SL Tax Loopholes Threaten Local Industries & State Revenue ⚖️
Multinational Companies (MNCs) are reportedly exploiting ambiguities and loopholes in Sri Lanka’s tax laws, creating an uneven playing field that threatens compliant domestic industries and results in substantial revenue loss for the State. • Core Issue: MNCs utilize global expertise to minimize/avoid tax payments, forcing local enterprises (which face high costs and regulatory burdens) to compete unfairly, pushing many toward closure or relocation. • Case in Point: The digital service sector (Rides & Eats) is cited. The locally incorporated entity pays full taxes (CIT), while its foreign counterpart, operating through a dependent agent, allegedly evades similar tax obligations. • Legal Stance: Sri Lanka’s IR Act and Double Tax Avoidance Agreements (DTAAs) are clear: non-resident entities operating through a Permanent Establishment (PE) or a dependent agent are liable for income tax on profits. • Evasion Attempt: Non-resident companies are reportedly attempting to register under the new VAT Amendment Act (for entities without a PE), which could be a bid to incorrectly claim exemption from income tax, despite evidence of dependent agency. • Wider Scope: The problem extends beyond "Rides" to numerous non-resident digital and service providers in sectors like tourism, hotel booking, and e-commerce. • Call to Action: Authorities must enhance capacity and consistently enforce the law to recover billions in lost revenue, ensure a fair tax regime, and protect local businesses.
⚖️ PUMA Secures Orders Against Counterfeit Trade in Colombo
• Global sportswear pioneer PUMA SE has successfully obtained four enjoining orders from the Commercial High Court of Colombo against four connected entities, including "SAFFANS," for the sale of counterfeit goods. • Legal Action: The civil litigation was initiated under the Sri Lankan Intellectual Property Act No. 36 of 2003, targeting the unlawful use of PUMA’s registered trademarks (e.g., the PUMA word mark and the leaping cat logo). • Defendants: The entities named—all noted retailers in the footwear industry—were alleged to be exploiting the global brand’s reputation by circulating inferior-quality goods under the guise of authenticity. • Court Order: Judges Amali Ranaweera and Chamath Madanayake issued orders prohibiting the defendants from producing, importing, marketing, selling, or otherwise dealing in any merchandise confusingly similar to PUMA’s registered marks. • This action reinforces the enforcement of Intellectual Property rights in the local market, crucial for global brand confidence and fair trade practices.
SL-India Forum Boosts PPP Momentum: 67 Projects Identified 🤝
• A high-level forum between the Indian High Commission and the Ceylon Chamber of Commerce (CCC) highlighted the crucial role of Public-Private Partnerships (PPPs) to bridge Sri Lanka's investment gaps. • CCC Vice Chairman stated it's timely for SL to seriously relook at PPP opportunities, noting that global capital is gradually flowing back into emerging markets due to stabilised reserves and expected declining global interest rates. • India's High Commissioner offered support, stressing that India and SL could jointly pioneer modern PPP frameworks, using India's two-decade PPP success as a template for the Global South. • The National Agency for PPP (NAPPP) CEO disclosed that 67 projects have already been identified as potential PPPs across key sectors like transport, water, and energy. • The Government is finalising long-awaited PPP legislation, supported by the Public Finance Management Act No. 44 of 2024, to introduce a transparent and efficient investment mechanism for sectors including ports, aviation, energy, and education. • Strong institutional capacity, coordination, trust, and accountability are emphasised as fundamental to ensuring the long-term success of these collaborations.
🇱🇰 One-Day NIC Service Decentralized to North Western Province
• The Department for Registration of Persons officially launched the One-Day National Identity Card (NIC) Issuance Service at its new North Western Provincial Office in Kurunegala on November 3rd. • This marks a significant step in the decentralization of services, empowering North Western Province residents to receive their NIC within just a few hours without traveling to the Colombo Head Office. • The initiative is part of organizational and technological reforms funded and supported by the Cabinet-approved Electronic National Identity Card (eNIC) Project. • Provincial offices are now operational in Galle, Nuwara Eliya, Batticaloa, and Vavuniya. The One-Day service is already successfully functioning at the Galle and Nuwara Eliya offices. • Similar offices are planned for future opening in other provinces to further strengthen fast and reliable public services.
Customs Intercepts Rs. 21M+ Kush Cannabis at BIA 🚨
• The Narcotics Control Unit (NCU) of Sri Lanka Customs arrested a 28-year-old Sri Lankan national at the Bandaranaike International Airport (BIA). • The individual was attempting to smuggle Kush Cannabis weighing 2.07kg (2,079 grams). • The total street value of the seized narcotic consignment is estimated at over Rs. 21 million. • The suspect arrived from Bangkok, Thailand via Chennai, India, with the drugs concealed in checked-in luggage. • The arrested individual and the recovered narcotics have been handed over to the Police Narcotics Bureau (PNB) for further investigation and legal proceedings. 👮
ICCSL-RKMT's Digital Tax Blueprint for Budget 2026 📈
• The ICCSL-RKMT has proposed a 'Blueprint for Smarter Revenue Mobilisation' focusing on modernization, simplicity, and building long-term trust for the upcoming 2026 Budget. • Proposal 1: Digitalisation Tax Credit • Suggests a two-year tax credit (up to 25%) for enterprises, especially SMEs, that invest in digital compliance tools like e-invoicing systems, ERPs, and cybersecurity. • Rationale: Rewards investment in accuracy, transparency, and strengthens the foundation for digital audits. • Proposal 2: Simplified Service Economy Tax Framework • Aims to formalize sectors like freelancers, consultants, and IT professionals. • Small-scale service providers (turnover < Rs. 20M) can voluntarily register and pay a 3–5% presumptive tax on gross receipts. • Encourages automatic tax withholding via e-payment platforms for nearly effortless compliance. • Proposal 3: Integrated Taxpayer Tracking • Recommends a unified digital dashboard to consolidate and provide real-time tracking of registration, filing, payment, audit, and refund status across all tax types. • Goal: Increase transparency, reduce red tape, and restore taxpayer trust. • The proposal advocates for a modern tax culture, noting that the next economic leap will come from "better taxation" rather than more taxes. ICC Paris has offered support for Sri Lanka's digitalisation efforts.
Digital Infodemic Poses Systemic Risk to Business Credibility 📈
• Algorithms have created an "Infodemic" by prioritising provocation and virality over truth and accuracy, which the World Economic Forum ranks as a systemic risk to business credibility and stability. • For communicators, this means reputation management is a permanent crisis, as algorithmically amplified lies (especially AI-generated deepfakes) can instantly destroy brand value, outpacing even agile corporate response teams. • Globally, the era of minimal oversight is ending. The EU's Digital Services Act (DSA) mandates that "Very Large Online Platforms" (VLOPs) assess and mitigate systemic risks posed by their algorithms, shifting accountability onto tech giants. • In Asia, regulation often aligns with security. Sri Lanka, as a hyperconnected population, has seen the negative impact of social media during unrest, leading to an ongoing debate about balancing content control with freedom and avoiding political misuse. Singapore uses the interventionist POFMA to enforce corrections on false content. • The path forward requires the communications industry to adopt proactive "truth stewardship," embedding verification and ethical AI use to rebuild public trust in a fractured digital public square.
🚨 India ED Freezes US$ 351 Mn Assets of Reliance Anil Ambani Group
• India’s Enforcement Directorate (ED) has provisionally frozen ₹30.84 billion (US$ 350.87 Mn) in assets linked to the Reliance Anil Ambani Group as part of an ongoing money-laundering investigation. • The probe focuses on loans exceeding US$ 568.86 Mn taken from YES Bank between 2017 and 2019, where investments allegedly delivered no returns. • Key Allegations: Funds were part of a scheme to siphon off ₹30 billion (US$ 350 Mn) via Reliance Home Finance Ltd and Reliance Commercial Finance Ltd to shell companies, involving funds routed through mutual funds and alleged bribes to bank officials. • Assets frozen include residential units and land parcels across Mumbai, Delhi, and Chennai, including industrialist Anil Ambani’s family residence. • The ED is separately probing Reliance Communications Ltd and affiliates for the alleged diversion of over ₹136 billion (US$ 1.55 Bn) through loan evergreening and fund rerouting.
STR Launch Unlocks Credit for Sri Lankan SMEs 📈
• Sri Lanka has launched the Secured Transactions Registry (STR), a significant reform aimed at enabling greater credit access for SMEs, MSMEs, and entrepreneurs. • Core Mechanism: The STR allows businesses to secure loans using movable collateral (such as machinery, inventory, and equipment) instead of relying solely on fixed, immovable assets which many SMEs lack. • National Context: This initiative addresses a key barrier for SMEs, which form over 75% of all businesses and provide 45% of jobs in Sri Lanka, reinforcing the backbone of the national economy. • Key Partners: The STR is a collaborative effort led by the Credit Information Bureau (CRIB), in partnership with the Central Bank of Sri Lanka and the Ministry of Finance, with technical assistance from the International Finance Corporation (IFC) and funding from the European Union. • The new registry introduces simple rules, an efficient digital filing system, and robust legal protections, marking a transformative step toward greater financial inclusion and economic growth.
🇱🇰 Major Step for Cyber Safety: Sri Lanka Signs UN Cybercrime Convention 🌐
• Sri Lanka last week signed the historic UN Convention Against Cybercrime (UNCC) in Ha Noi, Viet Nam, becoming one of 72 UN Member States and the EU to join the first-ever UN Convention of this nature. • Regional Focus: Sri Lanka and Maldives are the only two South Asian countries to have signed the UNCC so far, highlighting a strong commitment to international cybersecurity cooperation. • Strategic Alignment: The move, spearheaded by the Digital Economy Ministry, reinforces Sri Lanka’s commitment to its National Cyber Protection Strategy (2025-2029) and Digital Economy Blueprint. • Domestic Mechanism: The Cabinet has directed the Digital Economy Ministry to initiate an inter-Ministerial mechanism to prepare for the Convention's ratification within three months, focusing on legal and technical readiness. • Focal Point: The Sri Lanka Computer Emergency Readiness Team (SL-CERT) is designated as the national focal point for this landmark UN Convention. • Precedent: This new engagement builds on Sri Lanka’s previous efforts, having been the first State party in South Asia to join the Budapest Cybercrime Convention back in 2015.
Navy Seizes Massive Rs. 5 Bn Drug Haul off West Coast ⚓
• The Sri Lanka Navy successfully intercepted a local multi-day fishing vessel in a deep-sea operation off the west coast, seizing a large consignment of narcotics. • The estimated street value of the confiscated drugs is close to Rs. 5 Billion (Rs. 5 Bn). • Total quantity seized exceeds 350 kilograms, comprising both heroin and crystal methamphetamine ("ice"). • The vessel and suspects have been handed over for further joint investigation by the Navy and the Police Narcotics Bureau.
🔔 SEC Sri Lanka Marks 38 Years of Capital Market Stewardship
The Securities and Exchange Commission of Sri Lanka (SEC) celebrated its 38th Anniversary with a bell-ringing ceremony at the Colombo Stock Exchange (CSE) on 30 October. • CSE Chairman highlighted the SEC’s "steadfast partnership" and critical leadership in strengthening Sri Lanka’s capital market. • SEC Chairman Prof. Hareendra Dissabandara noted the Commission's history, established in 1987 and now operating under the comprehensive SEC Act No. 19 of 2021 (replacing the initial 1987 Act). • Key clarifications on the SEC’s role: • The SEC is only one part of the entire securities ecosystem, working alongside issuers, investors, the CSE, and other professionals. • The Chairman categorically affirmed that the core regulatory role has not been forgotten, despite the focus on market development. • The SEC reaffirms its mission to create a fair, orderly, and transparent capital market while protecting investors, with a vision to become a regional leader in effective regulation.
Urgent Need to Revive Welding Skills: Proposal for National Advisory Board 🛠️
A formal proposal has been submitted to the Ministry of Education and the Ministry of Skills Development, warning of an "alarming decline" in the quality of welders from Sri Lanka's vocational training institutes. • The decline severely handicaps key local sectors including manufacturing, construction, and marine engineering, forcing industries to import welders from countries like India and China. • Despite global demand, only about 5% of graduates from national institutions are deemed competent for foreign job markets (UK, South Korea, Japan, Middle East). • This represents a major national economic loss: the initial salary for a skilled welder is around US$ 2,500/month, significantly higher than the average salary for unskilled foreign employment (~$400/month). • The core issue stems from insufficient practical training, weak assessment systems, and a lack of alignment with international standards (e.g., ISO 9606, AWS). • Way Forward: The proposal calls for the urgent establishment of a National Advisory Board for Welding Technology to: 1. Reform curricula and align training to international qualifications. 2. Design a mandatory national apprenticeship framework in collaboration with industry. 3. Facilitate global partnerships (e.g., TWI UK) to boost quality, generate foreign exchange, and restore industry confidence.
COPE Flags Major State Ownership Dilution & Audit Evasion at LTL Holdings (CEB Link) ⚡
The Committee on Public Enterprises (COPE) has raised serious concerns over ownership changes, governance, and audit practices at LTL Holdings, a key company partly owned by the Ceylon Electricity Board (CEB). • Ownership Dilution: State ownership (CEB's stake) has been sharply diluted from an initial 70% to the current 35%. • Transfer Mechanism: This drop largely resulted from the transfer of 28% of CEB's shares to West Coast Power Ltd. (operator of the Yugadanavi Power Plant) to offset Rs. 26 Billion of the Rs. 79.4 Billion debt the CEB owed for electricity purchases. • Current Shareholding: Now stands at: CEB (35%), West Coast Power (28%), Peradiv Ltd. (27%), and Tepro Investments (10%). • Audit Evasion: LTL Holdings has avoided examination by the Auditor General’s Department since 2015, prompting COPE to demand immediate measures to enforce a State audit, given its establishment with public funds. • Governance Concerns: Issues were raised over conflicts of interest, as both the Founder and current CEO are former CEB officials, potentially influencing power procurement. COPE also demanded a full report on the conversion of a 10% employee trust into Tepro Investments and alleged non-payment of dividends to CEB employees.
NHDC Convenes on Future Health Strategy 🇱🇰
• The National Health Development Committee (NHDC) recently met to discuss the future of Sri Lanka's national health policies and strategies. • The high-level session took place at the Sri Lanka Foundation Institute. • Discussions were held under the patronage of the Secretary to the Ministry of Health and Indigenous Medicine. • Specific details on policy outcomes or decisions are not included in the provisional data.
NHDC Convenes on Future Health Strategy 🇱🇰
• The National Health Development Committee (NHDC) recently met to discuss the future of Sri Lanka's national health policies and strategies. • The high-level session took place at the Sri Lanka Foundation Institute. • Discussions were held under the patronage of the Secretary to the Ministry of Health and Indigenous Medicine. • Specific details on policy outcomes or decisions are not included in the provisional data.
🚨 IVS-GBS Issues Statement on Sri Lanka Online Visa Audit Report 🚨
GBS Technology Services & IVS Global FZCO (IVS-GBS), the prime contractor, has issued a limited statement regarding the Special Audit Report (Oct 3, 2025) on the Online Visa Issuance Methodology of the Department of Immigration and Emigration (DIE). • Outsourcing Agreement: The audit relates to the December 21, 2023, outsourcing agreement for eVisa and related services between IVS-GBS, V F Worldwide Holdings Ltd (VFS - technical partner), and the DIE. • Key Clarification: IVS-GBS affirmed that it agreed with the DIE, as the prime contractor, to collect and remit visa revenues to the Department. • Process Observation: The company notes that the audit report’s findings were made without affording IVS-GBS an opportunity to present evidence and explanations. • Next Steps: The matter is currently sub judice. IVS-GBS confirms it will provide detailed representations before the appropriate forum when required and intends to engage directly with the Auditor General’s Office for clarification. • Commitment: The company re-emphasized its commitment to transparency, cooperation, and compliance with the Government of Sri Lanka.
SL Property Tax Reform Urged: Digital Valuation Needed by 2027 IMF Deadline 📈
• A Verité Research study warns that Sri Lanka’s current Property Tax system yields negligible revenue, raising less than 0.1% of GDP in 2021-22, and cannot support the new tax planned by 2027 under the IMF EFF. • Core Problem: The valuation system is outdated. Only about 120,000 properties (3.5% of the 3.5 million on record) received new annual valuations in 2022-23, implying an average property is revalued once every three decades. • Compliance Issue: The Colombo Municipal Council estimates that only about 20,000 of roughly 110,000 commercial properties regularly pay property tax. • Recommendation: Replace manual, site-inspection valuations with digital mass-appraisal techniques, specifically Points-Based Valuation (PBV), which uses aerial imagery and GIS to create a fair, low-cost, and enforceable tax base. • Local Governance: Local councils rely on Treasury grants for about 80% of funding. The Government's 20% cut to recurrent grants from 2024 is seen as an incentive to urgently adopt systems like PBV to build local revenue capacity.
📰 Lankan Conglomerates Face Impact from Indonesia's Palm Oil Land Laws
• Carson Cumberbatch PLC and Bukit Darah PLC's subsidiary, Goodhope Asia Holdings Ltd., have been impacted by new Indonesian forest area management regulations. • Approximately 12,000 hectares of their palm oil plantation land (5,877 ha planted, 6,275 ha unplanted) have been reclassified and transferred to a State-owned enterprise, PT Agrinas Palma Nusantara (PT ASN). • This action follows new regulations and the establishment of a Presidential Task Force for the repossession of lands categorized as forest status. • Current Status: Goodhope Asia Holdings Ltd. is in discussions with PT ASN regarding potential management arrangements for the affected plantations. • Plantation activities within these areas are not currently prohibited. • The companies have confirmed they have not received any notification or demand for payment of penalties so far, and the potential financial impact is currently undeterminable. • Wider Context: The new regulations have affected 587 companies and approximately 1.5 million hectares in the Indonesian Palm Oil sector overall.
🇮🇳 Visa & Consular Services: Indian High Commission Takes Over Direct Management
• The Indian High Commission (IHC) in Colombo will transition to directly managing all visa, passport, and consular services across Sri Lanka. • This follows the cessation of services by the current outsourcing partner, IVS Lanka, effective 31 October 2025. • New Procedure Start Date: Direct services by the IHC and its offices will commence on 3 November 2025. • Service Locations: Services will be handled at the High Commission in Colombo, the Assistant High Commission in Kandy, and the Consulate General in Jaffna. • Applicants seeking services are strongly advised to check the official website (hcicolombo.gov.in) for updated procedures and instructions.
📈 CoPA Flags North Western PC Project Irregularities & Directs Recovery of Rs. 85 Mn Arrears
• The Committee on Public Accounts (CoPA) has raised serious concerns over procedural and financial irregularities in the North Western Provincial Council’s six-storey office building project in Kurunegala. • Project Status: Construction is currently suspended due to a supervisory inquiry. • Key Flaws: CoPA noted the absence of a mandatory feasibility study and questioned the necessity of the 'Design and Build' procurement process, suggesting it unnecessarily increased the financial burden. • Directives: CoPA directed that all procurement documents and related project records be submitted to the Auditor General within one month and summoned relevant officials for further examination. • Financial Accountability: CoPA highlighted that approximately Rs. 85 million in tax arrears remain unrecovered due to supervisory shortcomings, instructing a report on the total recoverable amount by year's end. • Other Issues: The Provincial Land Commissioner's Dept. was criticised for poor record-keeping of State lands (including leased lands and rental arrears). CoPA also reviewed loan recovery efforts for funds distributed to paddy-producing co-operative societies.
New National Commission on Women (NCW) Set to Begin Operations 🛡️
• The National Commission on Women (NCW), an independent body, was established under the Women’s Empowerment Act No. 37 of 2024 and is set to commence functions soon. • Core Mandate: To safeguard and promote the rights and protection of women across the country. • Key Focus: The NCW will address complaints regarding issues, harassment, and injustices experienced in both Government and private sector workplaces. • Legal Facilitation: It will also assist women by providing necessary guidance related to ongoing legal cases within the judiciary. • The commission is led by Chairperson Dr. Ramani Jayasundara and comprises a seven-member team. • Officials have received instructions to expedite the provision of infrastructure and arrangements to ensure the Commission begins operations immediately.
🚨 SL Road Safety & Drug Testing: New Laws Headed to Parliament 📈
The Cabinet has approved two key proposals under the Motor Vehicles Act aimed at enhancing road safety and curbing driver impairment, which will now be submitted to Parliament for approval. • Driver Drug Testing Formalized: • Motor Vehicle (Drug) Directive No. 1 of 2025 establishes a clear legal framework and testing threshold for narcotics. • Police are now empowered to refer drivers suspected of drug use to a Government medical officer, strengthening enforcement against impaired driving. • Mandatory Expressway Seat Belts: • The Motor Vehicles Directive (Expressway) No. 02 of 2011 has been amended. • It now mandates seat belt use for every passenger occupying any seat in vehicles travelling on expressways, addressing recent rising fatal accidents. • Implementation Note: The Government confirmed a renewed commitment to reducing accidents. Complaints regarding seatbelt shortages/soared prices were dismissed, citing a sufficient three-month lead time given to motorists and importers to comply.
🚨 Cybercrime Threat Looms: Sri Lanka Faces Up to \$1Bn Annual Loss
• Experts warn that Sri Lanka faces an estimated annual loss of US\$ 450 million to up to US\$ 1 billion due to cybercrime, signaling an urgent need for stronger vigilance and governance. • The warning came during the "Mastering ISO 27001 Auditing" workshop, which focused on aligning local systems with global information security standards (ISO 27001:2022) and Sri Lanka’s Personal Data Protection Act (PDPA). • Information security must now be viewed as a strategic business enabler, moving beyond mere compliance to safeguard trust, reputation, and business continuity. • New Zealand High Commissioner David Pine stressed that cybersecurity awareness is the "first line of defence," emphasizing education and shared responsibility across all organisations and individuals. • Organisations are urged to adopt international standards and strengthen governance frameworks to ensure resilience and long-term sustainability in Sri Lanka’s digital economy.
VFS Global Clarifies Role in Sri Lanka eVisa Outsourcing Amidst Audit Spotlight 📰
VFS Global has issued a limited statement clarifying its position regarding the Sri Lanka eVisa outsourcing agreement, following media reports stemming from a Special Audit Report (dated Oct 3, 2025). • The Outsourcing Agreement, signed on December 21, 2023, involves the Department of Immigration and Emigration, IVS Global FZCO (IVS-GBS), and V F Worldwide Holdings Ltd (VFS Global). • VFS Global stated its role is limited to being a technical partner, with IVS-GBS identified as the prime contractor. • VFS emphasized that its function globally is exclusively administrative and non-judgemental, not involving the assessment part of the visa process. • The company confirmed its commitment to transparency and compliance with Sri Lankan competent authorities. • VFS Global also noted it offered full support and information to the Office of the Auditor General on November 7, 2024, but received no response, reiterating its commitment to future cooperation. • VFS noted that the captioned matter is currently sub-judice.
🚨 Call for GSMB Investigations Unit 🇱🇰
• Minister of Industries and Entrepreneurship Development, Sunil Handunnetti, has urged the immediate establishment of an Investigations and Raids Unit within the Geological Survey and Mines Bureau (GSMB). • The primary objective of this new unit is to significantly enhance oversight and accountability within the geological and mining sector. • This measure is aimed at strengthening regulatory enforcement in key industries.
📈 End to Political Interference in Foreign Jobs; E-Visa Audit Reveals US$ 1.4 Mn Tax Loss
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath has announced significant policy shifts and provided details on the controversial e-Visa audit. • Foreign Employment Reforms: • The government has ended the long-standing culture of political interference, where ministers and their secretaries allegedly took money to send people, particularly to Israel. • Overseas job selection is now transparent, focusing on qualified candidates and strict adherence to the MoU with Israel (PIBA handles selection). • Legal action is being taken against fraudsters, including licensed agencies for Romania that charged up to Rs. 1.9 million without providing jobs. • Migrant Worker Welfare: • The Government is committed to granting Voting Rights to Sri Lankans living overseas, with a special committee already appointed to prepare the legal framework. • A new contributory pension scheme for migrant workers is being initiated to provide greater financial security, replacing the current ineffective system. • E-Visa Audit Findings (April-Aug 2024): • The special audit report is crucial evidence in the ongoing court case, citing "major procedural lapses" and a lack of transparency in the contract award. • GBS, IVS, and VFS failed to remit collected taxes, resulting in a loss of US$ 1,418,360 to the Government (comprising $172,970 SSCL and $1,245,390 VAT). • The firms handled 373,991 applications, generating approximately US$ 6.9 Mn in service-fee revenue, plus an additional US$ 1.8 Mn from fee-waiver countries. • The audit questioned the steep service fee of $18.50 per application under the new system, compared to the previous ETA charge of $1.
🚨 BIA Drug Bust: Canadian Arrested with Rs. 182.53 Mn Hashish
• Sri Lanka Customs’ Narcotics Control Unit (NCU) arrested a 21-year-old Canadian national at Bandaranaike International Airport (BIA) on Monday (Oct 27). • The suspect, arriving from Dubai, was attempting to smuggle 18,253 grams (18.25 kg) of hashish into the country. • The narcotics were carefully concealed within the suspect's checked-in luggage. • The seized hashish is estimated to be worth approximately Rs. 182.53 Million in street value. • The suspect and the contraband have been handed over to the Police Narcotics Bureau (PNB) for further investigation and legal action. • Customs highlighted the ongoing vigilance of the NCU in preventing transnational drug trafficking through the main international gateway.
Cabinet Approves New Bill to Regulate Container Depot & Logistics Operations ⚖️
• Cabinet has approved the publishing of a new Bill in the Government Gazette and its subsequent submission to Parliament for approval. • The core aim is to issue fresh licences for container depot operators and amend existing licensing laws governing the shipping and logistics sector. • The Bill amends the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No. 10 of 1972. • Key objectives include: • Strengthening regulatory oversight of shipping and logistics sectors. • Improving licencing procedures for operators. • Ensuring compliance with international operational standards for container depot and freight handling operations. • The draft legislation has been completed by the Legal Draftsman and cleared by the Attorney General.
SAPRI Drives Policy Dialogue & Youth Empowerment for SL's Future 🇱🇰
The South Asia Policy and Research Institute (SAPRI) marked its 15th anniversary by launching the six-part "Policy Pulse: Youth Voices for South Asia" series to foster public participation in national decision-making. • The second session, "Gender-based violence: Breaking the silence," generated key policy recommendations to strengthen Sri Lanka's domestic violence legislation and reform laws affecting women, children, and marriage. • These recommendations will be refined into one of six policy briefs for presentation to policymakers at a roundtable and conference in 2026. • SAPRI is also advancing transformative projects in reconciliation and youth empowerment. This includes a pilot Science Education program in Mullaitivu, planned for island-wide scaling, which is crucial for future skilled workforce development. • The institute's mission is to build a generation of civic thinkers who can translate dialogue into concrete policy action, impacting national governance and social stability.
🚨 Worrying Decay in Sri Lanka's State University System
• The alarming systematic decline of the island's State university system was recently highlighted by a physical clash between two student batches at the University of Ruhuna over a cricket match score, leading to arrests. • Beyond trivial conflicts, many universities, especially outside the Western Province, are plagued by student unrest, indefinite closures, and widespread inhumane ragging of newcomers. Exceptions include Colombo, Moratuwa, and Sri Jayewardenepura. • Despite the generous taxpayer-funded free university education legacy, the system disproportionately benefits the upper middle class. Financial aid schemes (e.g., Mahapola) are reportedly misused through understated income declarations and bribery of officials. • Pathetic public finances, with revenue consumed by salaries and interest, leave little for meaningful improvements, contributing to substandard hostel facilities and poor canteen food across the 19 State universities, which now cater to 490,000 students. • The article stresses caution regarding further expansion, urging priority be given to resolving existing deficiencies and calling for serious evaluation and introspection by the academic community to drastically improve standards.
GI Status: Powering Value for Sri Lankan Exports 📈
• Geographical Indications (GIs) are emerging as a powerful tool for Sri Lanka to enhance the value of its agricultural and artisanal heritage, ensuring sustainable rural development and market competitiveness. • Current Progress: This strategic shift is marked by the EU registration of Ceylon Cinnamon and the ongoing GI application for Ceylon Tea. The Ceylon Tea GI project, supported by AFD, recently concluded with an expert conference on the topic. • Key Benefits (SLTB & Experts): • Market Premium: GIs protect origin identity, combat imitation, and position products like Ceylon Tea at a premium in international markets. • Quality Assurance: They help define and enforce quality standards, ensuring full traceability and protection against fraud. • Collective Action: The process fosters inclusive governance and collective action; the Ceylon Tea specification development involved over 500 operators. • Territorial Development: Well-managed GIs can attract investment, boost tourism (e.g., tea tours, spice gardens), and sustain rural livelihoods. • Strategic Path Forward (IPS): Experts recommend streamlining the GI system by: • Establishing a dedicated GI division within the NIPO. • Creating a nationally recognized GI logo for consumer trust. • Forming a GI Council including NIPO, EDB, Tea Board, and producer groups for coordinated policy. • Promoting initiatives like a 'One District, One GI Product' program.
📱 Hutch & TRCSL Host Regional Telecom Regulators (SATRC)
• Hutch Sri Lanka partnered with the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to host the high-profile ceremony for the 2nd Meeting of the South Asia Telecommunication Regulators’ Council (SATRC) Working Group on Policy, Regulation and Services on September 23, 2025. • The event drew nearly 75 delegates, including senior representatives from TRCSL, the Digital Economy Ministry, and leading telecom regulators from 10 nations across South and Southeast Asia (including India, Pakistan, Bangladesh, and the Maldives). • The gathering aimed to lay unofficial groundwork for strengthening regional regulatory cooperation, strategic networking, and exchanging ideas among regulatory bodies. • Hutch reinforced its role as a strategic telecom leader, demonstrating a commitment beyond commercial interests to contribute meaningfully to regional telecommunications governance and technological advancement. • Hutch CEO stated, "Connectivity is no longer a utility; it is an enabler of national productivity."
📈 Call for Forensic Audit on Royal College SDS Finances
An alumnus has formally requested the Auditor General to initiate a comprehensive investigative forensic audit into the Royal College School Development Society (SDS) activities for the past 10 years, citing severe irregularities in the 2024 financials. • The statutory auditor issued a "disclaimer" audit report for the RC-SDS for the year ended December 31, 2024. • The disclaimer's primary basis is the non-recognition of income from 13 material sources in the books, including major events like the Royal Thomian cricket match, Royal Trinity Bradby shield Rugger match, and RCU swimming pool. • Auditors were also unable to verify event income balances totaling over Rs. 18.06 Mn (including Rs. 15.02 Mn from Clubs/Societies) due to a lack of sufficient audit evidence. • An unauthorised write-off of Rs. 3.3 Mn is deemed minor when compared to the scale of non-accounting of main income sources. • The letter was also copied to the Education Ministry Secretary and suggests the previously missing 2023 report was "fraudulently omitted" due to likely similar adverse findings.
CIABOC Briefs Foreign Ministry Officials on Anti-Corruption & Ethical Conduct 🏛️
• The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) conducted an awareness program on "Combatting Corruption and the Relevance of Integrity and Ethical Conduct.” • The session was held for officials of the Ministry of Foreign Affairs, Foreign Employment and Tourism, including officers of the Sri Lanka Foreign Service (SLFSA) and Internal Affairs Units. • CIABOC Director General Ranga Dissanayake educated participants on the existing legal framework against bribery and corruption. • Key focus areas included the provision of maximum public service under the law and the public employees' role in building a prosperous Sri Lanka. • The program was organised on the instructions of Minister Vijitha Herath.
Customs Nabs Indian with Rs. 85 Mn Heroin at BIA 🚨
• Sri Lanka Customs’ Narcotics Control Unit arrested a 39-year-old Indian national at the Bandaranaike International Airport (BIA) on Sunday. • Seized: A total of 2.832 kg of heroin, valued at approximately Rs. 84.96 million (Rs. 85 Mn). • The suspect arrived from Kuala Lumpur, Malaysia, on SriLankan Airlines flight UL 315. • The narcotics were discovered concealed within a false bottom of the suspect’s checked-in luggage during an inspection. • The individual and the confiscated heroin will be handed over to the Police Narcotics Bureau (PNB) for legal proceedings following further investigation by Customs. • Customs officials emphasized the vigilance of their officers and the importance of continued inter-agency coordination in curbing narcotics smuggling through Sri Lanka’s ports.
📱 SL Govt. Planning Smartphone Ban for Under 12s
• The Government is planning to introduce measures that will prohibit schoolchildren below the age of 12 years from owning or using mobile phones. • The intention was announced by the Minister of Women and Child Affairs, Saroja Paulraj. • The move is aimed at protecting children from excessive screen exposure and harmful online content. • The plan also seeks to promote healthier development and social interaction among young children.
📈 E-Visa Audit Reveals $1.4 Mn Unpaid Taxes & Major Irregularities
• A special audit by the Auditor General’s Department on the e-Visa system (Apr.-Aug. '24) found that operating companies failed to remit over US$ 1.41 Million in taxes. • Unpaid Tax Liability: The total of $ 1,418,360 includes $ 1,245,390 in VAT and $ 172,970 in SSCL. • Revenue Routing: All visa-related revenue was routed to foreign bank accounts controlled by private operators, instead of official Government channels. Consequently, the AG Department could not verify the total revenue collected. • Service Fees & Earnings: • Operators (GBS Technology Services/IVS Global-FZCO) processed 373,991 applications, generating a minimum of $ 6.9 Mn in service-fee revenue, plus an additional $ 1.8 Mn from fee-waiver countries. • A uniform service fee of $ 18.50 was charged to all applicants, including those entitled to free visas. The audit questioned this increase, particularly for categories designed to attract tourist and business arrivals. • Irregularities: The firms were selected without a formal tender, violating Government procurement rules, and failed to remit the collected taxes and levies.
SL Achieves Major Data Protection Milestone 🛡️
• CICRA Campus successfully concluded Sri Lanka's inaugural Certified Data Protection Officer (DPO) Training Program, marking a significant step towards robust national compliance. • This achievement nurtures the first batch of qualified DPOs essential for implementing the Personal Data Protection Act (PDPA) requirements. • The intensive four-day program attracted a high-calibre cohort of senior professionals, including CEOs, Directors, and specialised Heads from legal, compliance, and IT/security functions. • Training provided practical expertise in key PDPA areas: conducting data audits, managing security breaches, and establishing comprehensive organisational data protection frameworks. • The program featured trainers and guest speakers who are leading industry experts, including former and current members of the PDPA Drafting Committee. • This initiative, alongside the Data Privacy & Protection Summit 2025 (3 July, 350+ attendees), strengthens Sri Lanka's overall capacity in data governance, positioning it as a key player in the region.
📈 Govt. Amends Law for FDI Boost: Tax Incentives Revived for Strategic Projects
• Cabinet approved amendments to the Mahinda Rajapaksa-era Strategic Development Projects (SDP) Act to reintroduce tax incentives aimed at attracting large-scale Foreign Direct Investment (FDI). • The move seeks to circumvent existing limitations on tax concessions under the IMF program to revive critical, capital-intensive projects. • Key projects targeted include the US$ 3.7 Bn Hambantota oil refinery and various Port City projects, which were previously stalled due to the absence of tax benefits. • Cabinet Spokesman assures that the incentives are limited and project-specific, intended to support economic recovery while maintaining fiscal discipline under the IMF. • The decision faces caution: The IMF previously warned against tax exemptions weakening revenue performance. The World Bank and Human Rights Watch also cautioned on the adverse economic and social consequences of long-term tax holidays. • Local analysts highlight that granting tax concessions for projects like the Port City is seen as "unjust to other tax payers and corrosive to the broader economy."
📈 CoPF Approves Higher Levies on Imports & Demands Major Tariff/Excise Reforms
• The Committee on Public Finance (CoPF) has approved increased Special Commodity Levies (SCL) on key imports, effective 26 August 2025, aimed at protecting local farmers during the 2025 Yala season. • Levy Hikes: The SCL on imported big onions increased by Rs. 10/kg (from Rs. 40 to Rs. 50), and on imported potatoes by Rs. 20/kg (from Rs. 60 to Rs. 80). • Tariff Reform Mandate: CoPF demanded an overhaul of the national tariff structure to be sustainable, simple, transparent, and predictable. Ministries were directed to assess the shift to a four-band import duty system and the gradual phase-out of para-tariffs (SCL/CESS) between 2027 and 2030. • Agricultural Support: A national project was recommended to promote high-yield cultivation kits for big onions and integrate storage/buy-back schemes within five years to reduce dependence on tariffs. • Excise Enforcement: New rules were approved to tighten duty collection from liquor manufacturers. Non-payment will now lead to production suspension after 30 days and a halt to distribution/sales after 90 days, replacing the previously insufficient penalty mechanism.
🏗️ Sri Lanka Approves National Building Code Development
• The Government is developing a National Building Code for Sri Lanka to strengthen regulation, quality, and safety within the construction sector. • The initiative is being formulated with technical assistance from the World Bank Group, and the NBRO's project proposal has received Cabinet approval. • The new codes will be comprehensive, covering key areas including structural integrity, fire safety, electrical/plumbing systems, energy efficiency, and disaster resilience. • This development addresses long-standing issues in the industry and aligns with a priority recommendation from the International Monetary Fund (IMF). • Once established, the framework will introduce legally enforceable standards for the design, construction, and maintenance of buildings, ensuring better health and resilience against natural disasters.
CEB Engineers Flag Major Flaws in Energy Reform Transfer Plan 🚨
The Ceylon Electricity Board Engineers’ Union (CEBEU) has called for immediate intervention from the Sectoral Oversight Committee, alleging serious legal and procedural violations in the ongoing electricity sector reform process. • Legal Violations: CEBEU states the reforms violate the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025. • Transfer Plan Dispute: The core issue is the Preliminary Transfer Plan (PTP)—a mere 10-page document outlining the transfer of CEB assets and liabilities to new companies. • Lack of Consultation: The PTP draft was reportedly rushed for internal comment (4 working days) and approved by the Minister of Finance on 11 Oct without any stakeholder consultation with employees or unions. • Statutory Deficiencies: The PTP allegedly fails to meet key statutory requirements, lacking critical details on: • Asset/liability allocation and valuation. • Financial plans for successor companies. • Framework for employee transfers and pension fund contributions. • Structural Issues: Only four of the six planned successor companies have been incorporated. • Union Warning: CEBEU warns that implementation of the PTP in its current form could lead to the entire electricity sector facing "collapse" due to the Ministry's handling of the process. The union urges a review and proper consultation.
🇦🇪 UAE Court Rules: Total Interest Cannot Exceed Original Loan Value! ⚖️
• Landmark Decision: The UAE Federal Supreme Court has reaffirmed a major ruling prohibiting financial institutions from charging interest on accumulated or compound interest. • Key Cap: The ruling establishes that the total interest payable on any loan must not exceed the original value of the loan principal. • Case Impact: This decision overturned a judgment requiring a borrower to pay AED 1.553 million on an original loan of AED 700,000. The court noted the accrued interest (AED 860,147) violated the principal cap. • Interest Type: The court clarified that only simple interest is allowed on outstanding balances after account closure. Crucially, delay interest (compensation for late payment) must also not cause the total debt to exceed the original principal. • Significance: This sets a powerful legal precedent for limiting debt exposure related to interest charges for borrowers across the UAE.
🚢 US$ 1 Bn X-Press Pearl Fine Shakes Global Shipping Market
• Sri Lanka’s US$ 1 Bn court ruling for the 2021 X-Press Pearl disaster has sparked alarm among global shipping insurers. • James Bean, CEO of the London P&I Club (the insurer), called the judgment "alarming," warning it could significantly drive up global marine insurance premiums. • Impact on Sri Lanka: Sri Lanka is not a signatory to international conventions that cap ship owners’ liability. This exposes owners to unlimited claims, potentially resulting in higher insurance premiums specifically for ships docking at Sri Lankan ports. • Global Risk: Insurers fear that a surge in premiums may push some vessels toward uninsured, unregulated "shadow fleets," increasing global maritime risk. • The issue is further complicated because existing conventions do not cover plastic pellet spills, one of the major environmental impacts of the incident.
🇱🇰 EY Urges Sri Lanka to Adopt Accrual Accounting for Public Finance 📈
• The International Public Sector Financial Accountability Index 2025 by IFAC/CIPFA/IPSASB details global advancements in public sector financial reporting. • Global Status: 31% of jurisdictions currently use a full accrual basis, with 30% remaining on a cash basis and 39% on partial accrual. • Projected Trend: Although high-income nations lead currently, the report projects that by 2030, more middle- and low-income groups will advance to accrual-based accounting. • SL Recommendation: Ernst & Young (EY) Sri Lanka suggests it is an "ideal time" for the Government of Sri Lanka (GoSL) to revisit its plans for adopting accrual-based financial reporting. • Key Benefits: Transitioning to accrual accounting significantly enhances public financial management by: Improving transparency (recognizing all transactions when they occur). Strengthening accountability. Supporting inter-generational equity.
ICCSL Drives Tax Awareness in Universities 🎓
• The International Chamber of Commerce Sri Lanka (ICCSL), spearheaded by its Committee for Research, Knowledge Mobilisation and Taxation (RKMT), has launched a national tax awareness initiative for youth. • The program's core objective is to bridge the tax knowledge gap among undergraduates and position understanding taxation as a key component of responsible citizenship and the social contract with the state. • Recent Session: The most recent successful session was held at the Faculty of Management and Finance, University of Colombo. • Key Practical Insights: Experts from leading firms (EY, KPMG) provided essential practical guidance on key principles, including how to apply for a Taxpayer Identification Number (TIN) and register with the Inland Revenue Department (IRD). • The drive emphasized connecting academic theory with real-world application, covering legal frameworks, compliance, and fostering long-term transparency and trust essential for sustainable national development. • Outlook: ICCSL plans to continue expanding this initiative across multiple universities and academic institutions to reach future entrepreneurs and young taxpayers nationwide.
💊 Proposed Pharma Strategy Sparks Trade Protectionism Debate 📈
• An ADB-commissioned strategy report advocates for restricting pharmaceutical imports to boost local production, currently meeting only 15% of national requirement. • The strategy is criticized as "economic protectionism" and market isolationism, designed primarily to shield domestic manufacturers from fair competition rather than ensuring public health or price competitiveness. • Consumer Impact: Protectionist policies are warned to lead to higher prices for consumers and often lower quality goods. The burden of high prices on Sri Lankan consumers is highlighted by the wage disparity (US min wage worker earns more per hour than SL counterpart earns per day). • IMF & Global Risk: A pivot towards protectionism is viewed as directly contradicting ongoing IMF program reforms based on trade liberalization. This risks undermining program compliance, eroding investor confidence, and damaging Sri Lanka’s international standing. • Crucially, implementing these restrictions could see Sri Lanka globally blacklisted by MNCs (Multi-National Corporations), stalling R&D and potentially resulting in critical medicinal shortages.
Govt. Launches Major Push for Sports Tourism 🏏
• Tourism Minister Vijitha Herath announced the formation of an operations committee comprising public and private sector officials to accelerate efforts to promote sports tourism in Sri Lanka. • The decision follows a key meeting with representatives from the Youth Affairs and Sports Ministry, Sri Lanka Cricket, and various national sports federations. • The committee's core focus is to attract international visitors by fully leveraging national and international sporting events, including cricket, rugby, and football tournaments. • It will also work to integrate existing events (marathons, surfing, cycling) into the broader tourism strategy, improve crucial infrastructure, and enhance global visibility. • Sports tourism is identified as a key component of the Government’s long-term tourism plan, aiming to position Sri Lanka as a leading regional destination.
Police Caution Public Over Predatory Digital Loan Schemes ⚠️
• Sri Lanka Police and the Central Bank (CB) have issued a joint warning regarding a surge in complaints over deceptive online and mobile loan schemes. • Lenders are promoting instant cash without collateral, but borrowers are subsequently facing financial distress due to undisclosed fees and excessive interest rates. • Predatory recovery methods include harassment, repeated calls, and public shaming/defamatory social media posts against those who fail to meet repayments. • A joint probe confirms that many of these digital lending entities are unlicenced and unregulated by the Central Bank. • Public is strongly urged to obtain credit only from institutions authorised and regulated by the Central Bank and to verify their legitimacy before borrowing. Oversight measures are currently being introduced.
🇱🇰 Transport Ministry to clear backlog, 300,000+ driver's licences in 3 months 📈
• The Ministry of Transport, Highways, Ports and Civil Aviation expects to print and distribute over 300,000 pending driver's licences within the next three months. • Procurement for 1 million cards is complete, with a new licence featuring enhanced security slated for introduction later this year. • The Minister instructed officials to install printing machines in every province to significantly accelerate the licence issuance process. • Supplier selection for new vehicle number plates is currently underway, awaiting Cabinet approval for finalisation. • The Committee also reviewed the integrated passenger transport timetable, with plans to identify shortcomings and expand it to more regions for improved efficiency. • A pilot project aimed at reducing elephant-train collisions has been allocated Rs. 2.8 million for installing long-range surveillance cameras on trains along the Batticaloa line.
📈 SL Expands Tax Exemptions for Green Investment & Key Industries
The Government has issued a new Gazette, effective from 15 October 2025, significantly expanding duty and tax exemptions on capital goods for priority development projects via the bonded warehouse scheme. • Objective: Accelerate the transition towards renewable energy and sustainable industrial growth, aligning with the 2026 economic roadmap. • New Scope: The regulation amends the 2018 framework to specifically include Renewable Energy storage as an eligible investment sector. • Eligible Sectors: Registered companies engaged in constructing or expanding facilities in the following five key industries now qualify for the exemptions: Dairy manufacturing Pharmaceutical manufacturing Medical equipment production Solid waste management Renewable Energy generation or storage • Renewable Energy Threshold: Eligible projects must involve at least 1 megawatt (MW) of generation capacity or 1 megawatt-hour (MWh) of storage capacity. • Impact: The measure is expected to attract local and foreign investment into Sri Lanka’s clean energy sector, helping the country move closer to its ambitious target of generating 70% of electricity from renewable sources by 2030.
Sweeping Labour Law Reforms: Four New Bills to Modernise Employment Framework 📜
• The Government is advancing its comprehensive labour law reform agenda, preparing to introduce four new bills to modernise Sri Lanka's employment framework. • These four bills will simplify and consolidate existing laws, specifically covering: • Trade Unions • Labour Relations • Occupational Safety • Termination of Employment • A 17-member committee is reviewing 14 existing labour laws. The goal is to balance worker welfare and protection with enterprise competitiveness and flexibility. • Interim amendments will be made to current laws (e.g., night work for women, labour protection, employment insurance) until the new framework is fully enacted. • Separately, the national policy on occupational safety and health is reaching its final stage. Work is also underway to upgrade the Labour Department’s database to register all workers under the government's digitalisation drive.
📈 Sri Lanka Tourism Boost: Govt Eases Entry & Improves Facilities for Upcoming Season.
• The government's Special Performance Force, appointed by President Anura Kumara Dissanayake, met (Oct 14) to take strict decisions required for the promotion of the tourism industry. • Key Initiatives Discussed: • Easing procedures for obtaining tourist visas and the Electronic Travel Permit (ETA). • Increasing the number of counters at the airport to reduce congestion upon tourist arrival. • Facilitating easier, online ticket purchasing for tourists visiting various sites. • The meeting also focused on addressing issues faced by tourists and parties within the tourism sector. • High-level attendees included Minister Vijitha Herath, Deputy Minister Ruwan Ranasinghe, and corporate heads like John Keells Holdings CEO Krishan Balendra and EKHO Hotels and Resorts VP Nihal Muhandiram.
WHO Regional Committee Session Opens in Colombo 🇱🇰
• The 78th session of the World Health Organisation’s (WHO) Regional Committee for South-East Asia has commenced in Colombo. • Sri Lanka's Health Minister, Dr. Nalinda Jayatissa, was elected to a key regional leadership post. • Minister Jayatissa will serve as the Committee’s Chairman for a one-year term.
Port City Law Amendments Approved by Cabinet 📈
• Cabinet has approved the proposal by President Anura Kumara Disanayake to instruct the Legal Draftsman to prepare amendments to the Colombo Port City Economic Commission Act, No. 11 of 2021. • The revisions are aimed at addressing regulatory gaps and investor concerns, following the repeal of key strategic business regulations on August 4. • The goal is to strengthen the competitiveness of the special economic region, attract foreign direct investment (FDI), and improve Sri Lanka’s global ease-of-doing-business rankings. • New measures are expected to restore investor confidence by clarifying the incentive framework and providing direct solutions to issues faced within Colombo Port City, which is positioned as an international business hub.
📈 Private Sector Minimum Wage Hikes Approved: Rs. 27,000
• The Cabinet has approved the full implementation of the National Minimum Wage of Workers (Amendment) Act, No. 11 of 2025, significantly raising the minimum wage for private sector employees. • Phase 1 Increase: The monthly minimum wage will increase from the current Rs. 17,500 to Rs. 27,000 with effect from 1 April 2025. • Phase 2 Increase: The minimum wage is scheduled to rise further to Rs. 30,000 starting 1 January 2026. • The revised wage applies to all statutory payments, including EPF, ETF, overtime, maternity benefits, probationary pay, and holiday entitlements. • Compliance is mandatory for all employers, including intermediaries and contractors. The Commissioner General of Labour has been tasked with full enforcement across all industries and services.
📈 Cabinet Approves Rs. 1.3 Bn Excise Revenue System Upgrade
• The Cabinet of Ministers has approved the award of a Rs. 1.3 billion contract for a new revenue administration system for the Excise Department. • The contract, which is tax-free, was granted to MillenniumIT ESP Ltd. and Metropolitan Technologies Ltd. This project contributes to the national ICT/BPM sector's involvement in public sector digitalization. • The new system will cover the design, development, implementation, and maintenance of the revenue administration structure. • Expected outcomes include improved efficiency via integrated data exchange, strengthened risk management and revenue reconciliation, and enhanced transparency and accountability in excise operations. • The approval followed the dismissal of three appeals that had been submitted to the Procurement Appeals Board regarding the tender process.
🇱🇰 FIU Boosts Global Fight Against Financial Crime 🛡️
• Sri Lanka’s Financial Intelligence Unit (FIU) of the Central Bank is set to sign Memoranda of Understanding (MoUs) with the Financial Intelligence Units of Vatican City State and Mauritius. • Both proposals have received Cabinet approval, according to Cabinet Spokesman Dr. Nalinda Jayatissa. • The core objective is to strengthen cross-border cooperation and intelligence sharing. • These agreements specifically target the combating of money laundering, terrorism financing, and proliferation financing. • The MoU with the Vatican's FIU (Financial Information Authority of the Holy See) will facilitate the exchange of information to support global efforts against financial crimes.
📈 GRA Urgency: 70% Gambling Activity Online, Dodging Taxes
The Committee on Public Finance (CoPF) has highlighted a major revenue gap concerning gambling activity in Sri Lanka: • Online Domination: An estimated 60-70% of all casino-related activity now takes place through online platforms. • Tax Loss: The State earns zero tax revenue from this significant majority of activity, as only 30-40% occurs in taxed, licensed physical establishments. • Regulatory Push: CoPF urged the immediate establishment of the Gambling Regulatory Authority (GRA) to develop a mechanism for taxing online casinos and overseeing the entire sector. • Government Commitment: Finance Ministry and IRD officials have agreed to implement this, aiming for the GRA to be fully operational by 30 June 2026. • Critical Context: The lack of oversight allows significant revenue loss and compromises Sri Lanka's compliance with FATF standards on anti-money laundering (AML) and counter-terrorism financing.
💼 President Urges Wage Hike for Plantation Workers, Assures Govt. Support
• President Anura Kumara Disanayake held discussions with representatives of major plantation companies (including the Planters' Association of Ceylon and EFC) regarding the proposed increase in estate workers' daily wages. • The President emphasized the importance of a living wage and improving living standards for plantation workers, proposing the increase to be in line with salary increments granted to public and private sector employees in the previous Budget. • The Government assured its fullest support to the industry to implement the wage increment and outlined its policy commitment to develop and strengthen the plantation sector. • Discussions covered the methodology for implementation, following company representatives outlining the current challenges faced by the industry.
⚖️ LAUGFS Suspends Dubai Unit (Slogal Energy) After US Sanctions
• LAUGFS Gas PLC has suspended all commercial operations of its Dubai-based subsidiary, Slogal Energy DMCC, pending a full compliance review. • The decision follows the US Treasury’s Office of Foreign Assets Control (OFAC) naming Slogal Energy for allegedly purchasing and selling Iranian-origin Liquefied Petroleum Gas (LPG) shipments to Sri Lanka and Bangladesh. • LAUGFS asserts Slogal Energy “never knowingly engaged in, or facilitated, any trade involving sanctioned entities or products of sanctioned origin,” stating all transactions followed international trade practices with supporting documentation. • The company is undergoing a legal and compliance review with US sanctions counsel and plans to petition for Slogal Energy DMCC's delisting from the US Treasury's Specially Designated Nationals (SDN) list. • Importantly, LAUGFS confirms its domestic LPG distribution business in Sri Lanka remains unaffected by this development.
Australian Fuel Investor Exits SL, Initiates Dispute Resolution ⛽
• Australian-owned United Petroleum Lanka (UP), which entered the local fuel retail market in August 2024, has initiated formal dispute resolution proceedings against the Government of Sri Lanka (GoSL). • UP suspended fuel supply operations in December 2024, citing the Government's failure to uphold critical contractual terms, leading to an economically unsustainable environment for the investment. • An orderly Exit Agreement, signed in April 2025 and endorsed by the Cabinet, was terminated in October 2025. • The termination occurred because the Ministry of Energy failed to fulfill a key undertaking stipulated in the exit agreement, despite United Petroleum meeting all its obligations and granting extensions. • UP stressed that the difficulties faced—from operation to exit—underscore the vital importance of policy consistency and adherence to contractual arrangements for attracting and retaining foreign investment.
WHO Director-General in Sri Lanka for Regional Health Summit 🌍
• World Health Organisation (WHO) Director-General Dr. Tedros Adhanom Ghebreyesus arrived in Sri Lanka yesterday (October 12th). • The visit is for the 78th Session of the WHO South-East Asia Regional Committee. • The high-level attendance highlights a focus on regional health policy and cooperation.
⚖️ SL Companies Act Amended: Beneficial Ownership Disclosure Mandatory
New amendments (Act No. 12 of 2025) to the Companies Act mandate full disclosure of beneficial ownership, aiming to end anonymous ownership and align Sri Lanka with global Anti-Money Laundering (AML) standards ahead of the FATF evaluation. • Core Requirements: Companies must register beneficial owners, maintain detailed registers for 10 years (even after liquidation), and notify the Registrar of changes within 14 days. The law also explicitly bans bearer shares. • Enforcement: Non-compliance carries substantial fines and criminal liability for directors, secretaries, officers, and shareholders. Ignorance is not an acceptable excuse. • Challenges: Industry experts note significant difficulties in enforcement due to tracing ownership through hidden family wealth and complex offshore structures (e.g., BVI, Hong Kong). Identifying beneficial owners in foreign corporate and fund structures is also complex. • Compliance Facilitation: The Registrar of Companies is preparing regulations, digitalizing the filing system for online submission, and will accept electronic signatures. While the Central Depositary System (CDS) assists, the primary legal responsibility rests with the companies.
✈️ Lawsuit Filed Against Qatar Airways Over Lankan Cardiologist's Death
• The family of 85-year-old Sri Lankan cardiologist Asoka Jayaweera has filed a wrongful death lawsuit against Qatar Airways, alleging the airline’s negligence caused his death. • The incident occurred on a flight from Los Angeles to Sri Lanka. Jayaweera, a "strict vegetarian," was allegedly denied his pre-ordered meal and instructed to consume a standard meal by "eating around" the meat. • He began choking on a piece of food shortly after, with his oxygen saturation levels dropping to a dangerously low 69%. He lost consciousness approximately three-and-a-half hours before the plane diverted to Edinburgh, Scotland. • The lawsuit alleges crew negligence, including refusal of an emergency landing. Jayaweera died on 3 August 2023 from aspiration pneumonia. • The family is seeking damages exceeding the US$ 175,000 statutory limit set by the Montreal Convention. Qatar Airways has not publicly responded to the filing.