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Biodiversity Sri Lanka (BSL) marked its 10th anniversary this year, celebrating a decade of uniting businesses, scientists, and policymakers to safeguard the island’s natural heritage.

From its inception, Dilmah Tea played a pivotal role alongside IUCN and the Ceylon Chamber of Commerce in co-initiating BSL, funding its first staff member and helping shape the platform that would connect companies eager to act on biodiversity with the expertise and frameworks needed for measurable impact.

What began in 2012 as the Business and Biodiversity Platform, driven by this founding partnership, evolved into BSL in 2015 – making Sri Lanka the first country after Japan to establish a corporate-led biodiversity initiative.

This milestone anniversary was commemorated with Annual Technical Sessions on 24 September and the BSL Annual General Meeting on 26 September, both celebrating BSL’s pioneering role and looking ahead to an even stronger decade of action.

BSL Senior Technical Adviser Shiranee Yasaratne said: ‘I look back with a sense of pride and also great appreciation because we trod untrodden waters. At that point I need to recollect the initiation carried out by the likes of Prema Cooray, the Secretary Generals of the Ceylon Chamber of Commerce, IUCN, and Dilmah Conservation, which funded the first staff member for the platform.’

What started as a lonely journey with five members has today grown into a network of over 100 member organisations spanning the sectors of manufacturing, tourism, IT, finance, and more. Its flagship LIFE Series has built a portfolio of multi-stakeholder projects to restore threatened ecosystems. The first initiative restored 12 hectares in Kanneliya Conservation Forest and has since expanded to 10 hectares of mangrove restoration in Anawilundawa Sanctuary, management of 130 kilometres of coastline to reduce plastic pollution, coral reef rehabilitation, and restoration of Lunugamwehera National Park areas degraded by invasive species.

At this year’s Annual Technical Sessions, keynote addresses highlighted the urgency of business engagement. Renowned biodiversity scientist Rohan Pethiyagoda underlined the importance of corporate action for nature, while IORA Ecological Solutions, India Senior Economic Adviser Prof. Madhu Verma stressed the need to value nature in economic decision-making.

A high-level panel moderated by Resplendent Ceylon Chairman/CEO Malik Fernando, explored how businesses are embedding biodiversity into strategy. Panellists included University of Colombo Emeritus Professor of Economics Prof. Sirimal Abeyratne, Architect Murad Ismail, IUCN Country Representative Dr. Shamen Vidanage and Hayleys Fabric PLC Executive Director – Finance and ESG Rohitha Bandara, with expert reflections from UNEP ROAP Senior Regional Adviser on Climate and Environment Aban Marker Kabraji.

Recognising Dilmah’s commitment to biodiversity Kabraji said: ‘I was there at the creation of Biodiversity Sri Lanka, I know how much the Dilmah Family led it. All I can say is you showed us the way, and I thank you for it.’ It is commendable how Dilmah has taken a corporate leadership role towards a national sustainability objective.

The afternoon shifted to focused breakout sessions where economists, scientists, researchers, and corporate leaders exchanged ideas across six themes: Financing the Plastic Revolution; Science, Policy and Partnerships; Harnessing Nature to Transform Business Strategy; AI and Nature for Enriched Experiences; Cultivating Biodiversity in Agriculture and Plantations; and Aligning Business and Nature. Member-led examples showcased on-the-ground projects, challenges, and lessons.

At the Annual General Meeting, BSL Chairperson and Dilmah Chairman/CEO Dilhan C. Fernando presided, sharing updates from the past year after which a new Board of Directors was appointed.

‘Through our LIFE Series and science-led restoration programs, BSL is pioneering private-public-people collaborations that go beyond tree planting to deliver resilient landscapes, thriving wildlife, and shared prosperity,’ said Fernando.

A highlight of the AGM was the unveiling of BSL’s new logo and strategy, structured around five pillars under the acronym L.I.F.E. These focus on restoring landscapes, supporting local communities, promoting responsible resource use, and forging partnerships between business, science, and policy to drive lasting impact.

In today’s global context, sustainability is no longer optional. For Sri Lankan companies, particularly those linked to European and American markets, compliance with environmental standards is becoming mandatory. BSL’s mission goes further – nurturing businesses that embed sustainability into core strategy, while addressing climate change, pollution, and resource depletion.

With a decade of impact behind it, BSL now looks ahead to a future where business takes a leading role in building a nature-positive Sri Lanka.

The International Monetary Fund (IMF) yesterday said the next tranche of the $ 3 billion Extended Fund Facility (EFF) arrangement hinges on Sri Lanka’s Parliament approving a Budget for 2026 that aligned with IMF program parameters and debt sustainability.

‘The 2026 Budget should be in line with program parameters to continue building fiscal space on the back of strong revenue measures and prudent spending execution,’ IMF Mission Chief Evan Papageorgiou said.

‘This requires sustained efforts to improve tax compliance, broaden the tax base, and tackle revenue leakages by strengthening the tax exemption frameworks. Enhancing public financial management, avoiding the re-emergence of expenditure arrears, and promoting high-quality and efficient public expenditure, including by addressing capital spending under-execution, will contribute to safeguarding fiscal discipline and transparency,’ Papageorgiou added.

An IMF mission team led by Papageorgiou visited Sri Lanka from 24 September to 9 October, to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the Extended Fund Facility (EFF) arrangement. At the end of the mission, Papageorgiou made the following statement in Colombo: ‘IMF staff and the Sri Lankan authorities have reached staff-level agreement on the Fifth Review under the 4-year Extended Fund Facility (EFF) arrangement. The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about $ 3 billion) on March 20, 2023.

The staff-level agreement is subject to IMF Executive Board approval, contingent on: Parliamentary approval of the 2026 Appropriation Bill in line with program parameters and the completion of the financing assurances review, to confirm multilateral partners’ financing contributions and assess adequate progress with debt restructuring.

Upon completion of the Executive Board review, Sri Lanka would have access to SDR 254 million (about $ 347 million), bringing the total IMF financial support disbursed under the arrangement to SDR 1,524 million (about $ 2.04 billion).

Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes.

The economy grew by 4.8% YoY in 2025H1 and we expect growth to remain solid in 2025. Inflation has returned to positive territory and in September prices rose by 1.5% YoY. Gross official reserves reached $ 6.1 billion at end-September 2025. Fiscal performance in 2025H1 has been strong, primarily supported by taxes on motor vehicle imports.

Debt restructuring is nearing completion.

Program performance is strong, underpinned by good fiscal revenue outcomes and improvements in external resilience. The reform momentum should be sustained to safeguard macroeconomic stability and enhance Sri Lanka’s resilience to shocks. This is particularly important given heightened downside risks to the economy from persistent trade policy uncertainty and geopolitical tensions.

At the same time, it is instrumental to maintain cost-recovery energy pricing, strengthen the governance of state-owned enterprises (SOEs), and resolve their legacy debts to ensure financial viability and minimise fiscal risks. Upcoming bills on public-private partnerships, SOEs, public procurement, and public asset management should be consistent with the Public Financial Management Act and best practices.

Protecting the poor and vulnerable should remain a priority. There is scope to strengthen the design of the welfare benefit payment scheme to improve the targeting, adequacy, and coverage of social spending.

Accelerating the finalisation of bilateral debt agreements with the remaining official and commercial creditors is key to restoring debt sustainability and improving investor confidence. A swift operationalisation of the Public Debt Management Office will be a key step towards prudent debt management practices.

It is important for monetary policy to remain data-driven and to ensure price stability. Central bank independence should continue to be safeguarded, including by continuing to refrain from monetary financing of the budget. Efforts should continue to rebuild external buffers through reserve accumulation to adequate levels, while allowing for exchange rate flexibility.

Resolving non-performing loans, strengthening governance and oversight of state-owned banks, and improving the insolvency and resolution frameworks are important to foster credit growth and safeguard financial sector stability.

It is crucial to speed up the implementation of governance reforms outlined in the government’s action plan. Advancing procurement reforms, strengthening the AML/CFT framework, prioritising anti-corruption measures in revenue administration, including digitalisation, and implementation of electronic asset declarations will contribute to reducing corruption vulnerabilities.

Recruitment at the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) should be accelerated and CIABOC’s independence safeguarded in line with the Anti-Corruption Act. Structural reforms will be key to lifting Sri Lanka’s potential growth.

The IMF team held meetings with President and Finance Minister Anura Kumara Disanayake, Prime Minister Dr. Harini Amarasuriya, Labour Minister and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Minister of Industry Sunil Handunnetti, and Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe.

The team held discussions with Treasury Secretary Dr. Harshana Suriyapperuma, Senior Economic Advisor to the President Duminda Hulangamuwa, Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya, Central Province Governor Prof. Sarath Abayakon, and other senior Government and CBSL officials.

The IMF team also met with parliamentarians, representatives from the private sector, civil society organisations, and development partners.

‘We would like to thank the authorities for the excellent collaboration during the mission, including while visiting the Central and Uva provinces. We reaffirm our commitment to support Sri Lanka achieve strong, sustainable growth,’ the IMF Mission said.

The secondary Bond market yesterday remained subdued for a third consecutive session, reflecting the same restrained sentiment observed earlier in the week. Activity was largely muted, with only a handful of trades executed on selected maturities. Yields continued to hold broadly steady, consolidating around prevailing levels. Market participants maintained a cautious, wait-and-see stance amid the absence of clear directional cues, underscoring the broader tone of consolidation and restraint that has characterised trading in recent days.

The 15.03.28 maturity was seen trading at 9.14%. The 15.09.29, 15.10.29 and 15.12.29 maturity was seen trading at the rates of 9.73%-9.76%, 9.68%-9.73% and 9.75% respectively. The 01.07.30 maturity traded at the rate of 9.78%. The 15.03.31 maturity traded within the range of 10.03%-10.10%. The 15.12.32 traded at the rate of 10.50%.

The total secondary market Treasury Bond/Bill transacted volume for 8 October was Rs. 14.28 billion.

The net liquidity surplus was recorded at Rs. 156.75 billion yesterday. An amount of Rs. 156.90 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%, while Rs. 0.15 billion was withdrawn through the SLFR (Standing Lending Facility Rate) of 8.25%.

The weighted average rates on overnight call money and Repo stood at 7.87% and 7.89% respectively.

The International Monetary Fund (IMF) said Sri Lanka’s debt sustainability will depend on the Government’s continued fiscal discipline, macroeconomic reforms, and completion of restructuring agreements under the Extended Fund Facility (EFF).

IMF Mission Chief Evan Papageorgiou told reporters in Colombo that debt restructuring is almost complete.

‘Restructuring is nearly complete,’ he said. ‘The Eurobond exchange was completed successfully in December 2024, almost a year ago, and several bilateral agreements have been signed so far with Japan, India, and others as well.’

He said Sri Lanka has made significant progress in reducing its external debt burden.

‘Of the $ 28 billion of external debt that we have under the perimeter, now we have only half a billion left in terms of which restructuring agreements need to be reached,’ Papageorgiou said.

‘The next step for that is to finalise the bilateral OCC official credit committee agreements and to reach the agreements with the remaining commercial and official creditors.’

He said the finalisation and execution of restructuring agreements are essential but must be accompanied by continued policy discipline.

‘The finalisation, the execution of the restructuring agreements is key, but alongside that there needs to be continued fiscal prudence, ongoing macroeconomic reforms, and maintaining fiscal sustainability and debt sustainability. All these go hand in hand,’ he said.

Papageorgiou stressed that addressing the debt stock alone is insufficient.

‘Fixing the debt stock is important, but also making sure that the flow that feeds into the debt stock is just as important,’ he said. ‘Having a prudent debt management, having the PDMO being up and running, being operational is also very important.’

He added that the IMF’s assessment is that under all these conditions, debt will be sustainable on a forward-looking basis.

On the 2026 Budget, Papageorgiou said it remains a key prior action for the ongoing review.

‘We have one prior action this time,’ he said. ‘It is about the Budget. And it is about ensuring that the Budget parameters are in line with our program.’

He said the IMF will monitor both the size and quality of Government spending.

‘We have the primary fiscal surplus target of 2.3%, or the minimum, rather, of 2.3%. And then alongside of that, we are also judging the quality of the spending programs that will go into the budget,’ Papageorgiou said.

He also underlined the importance of State-Owned Enterprise reforms in containing systemic fiscal risks.

‘We take note on the ongoing commitments by the Government on seeing a group in association with putting in stronger incentives for management, as well as the new SOE Act to manage the state-owned enterprises,’ he said.

Turning to fiscal revenue performance, Papageorgiou acknowledged the recent surge in collections, largely driven by motor vehicle imports and taxes.

‘Obviously, you probably have seen all the new vehicles in the streets of Colombo and the rest of the country, which we have as well,’ he said. ‘The motor vehicle imports have performed very strongly this year and, in a way, has also maintained – the pace has maintained pretty well.’

He said the IMF is assessing whether the sharp increase in motor vehicle taxes represents a sustainable source of revenue.

‘One crucial question for us is to exactly gauge how much of that could be interpreted or could be translated into persistent strength for 2026,’ Papageorgiou said.

‘We think that, obviously, the big uptick, the big increase that we’ve seen in imports as well as the revenue that has come into the public coffers is very important. We welcome it. And we are trying to see how much of that is pent-up demand and what would be the steady state post-that.’

He said the surge in vehicle imports is a positive signal of domestic recovery but will need close monitoring.

‘The vehicle import numbers have been impressive and stronger than we anticipated,’ he said. ‘Obviously, the size remains to be seen, but the numbers that you mentioned is something that sounds plausible to us as well.’

Papageorgiou said strong tourism receipts, remittances, and exports have helped offset the impact of higher imports on reserves.

‘Reserve accumulation is an outcome of many variables, not just the imports of vehicles which remove dollars from the market, but also offsetting aspects with strong tourism, strong remittances, and ongoing general strength on the export sector,’ he said.

He added that the Central Bank remains on track to meet or exceed its net international reserve target.

‘On the net international reserve target, or floor, rather, in our programme, the Central Bank is on pace or ahead of pace,’ he said. ‘Our expectation is that this is not affected now.’

Papageorgiou said the IMF and the authorities are discussing how to translate the current revenue performance into sustainable fiscal gains while maintaining external stability and prudent debt management.