Author: user user

CA Sri Lanka President Heshana Kuruppu addressing the institute’s 46th National Conference yesterday said Sri Lanka must not sacrifice economic momentum to avoid future Macro-Linked Bond (MLB) payments, arguing that the long-term benefits of sustained growth far exceed the added debt service costs.

He said Sri Lanka should not shy away from growth because of MLB terms. An International Monetary Fund (IMF) working paper estimates that from 2028 to 2038, Sri Lanka could pay between $ 150 million and $ 270 million a year, depending on GDP outcomes between 2025 and 2027, or about $ 2 billion over the decade.

‘Should we aim for lower growth to avoid these payments? The answer is no. The economic benefits of sustained higher growth will outweigh the additional debt service costs. The price of standing still is always greater than the price of moving forward,’ he said.

Kuruppu said the Public Finance Management Act, Public Debt Management Act, and Central Bank Act have improved transparency, but they will only deliver if backed by capable professionals who apply international standards and sound fiscal practices.

‘Implementing accounting standards, effective procurement and investment practices, and prudent debt strategies all depend on strong financial expertise in the public sector,’ he said.

He pointed to Cyprus, where embedding professional accountants in ministries lifted the share of qualified finance staff from 7% to 33% by 2022. Sri Lanka is far behind, with only 38 professionally qualified accountants among 1,600 public finance officers managing an estimated Rs. 7 billion in expenditure.

CA Sri Lanka has offered 25 full scholarships for an MBA in Public Finance Management and is working with Treasury Secretary Dr. Harshana Suriyapperuma to institutionalise the Chartered Public Finance Accountant qualification, developed seven years ago but not yet implemented.

He said market credibility is essential to attract capital and that ethics are central to the profession’s role. ‘The numbers we certify are not mere figures on paper. They form the foundation upon which investors, both local and global, build confidence in our economy. When we sign an audit report, we are underwriting Sri Lanka’s credibility,’ he said.

A Buddhist monk from Rathupaswala, Ven. Theripahala Siridhamma Thero, began a hunger strike in Tangalle yesterday to protest the Government’s decision to withdraw the security detail of former President Mahinda Rajapaksa.

The protest started around 1 p.m. near the D. S. Senanayake statue, opposite Carlton House in Tangalle, according to local reports.

The monk is demanding the reinstatement of security for Rajapaksa and other former presidents, arguing that removing state protection for a former head of state is unacceptable and poses risks to their safety.

Ven. Siridhamma Thero said he will continue the fast until the government reverses the decision and restores full security arrangements.

The Government has decided to take some steps to make the Mattala Rajapaksa International Airport (MRIA), Hambantota, a profitable venture by granting concessionary periods related to deviation tax for airlines operating from the airport, and also to establish a wildlife office at the premises to minimise damages from wild animals to its infrastructure.

The Cabinet of Ministers at their meeting on Monday approved these directives to attract more scheduled international airlines to the MRIA and also to facilitate existing airlines to continue their operations.

Cabinet Spokesman and Media Minister Dr. Nalinda Jayatissa yesterday said the Cabinet of Ministers had approved the proposal presented by the Transport, Highways, Ports and Civil Aviation Minister to further extend the currently implemented exemption period for the deviation tax until 26 June 2027.

Dr. Jayatissa said the decision aims to encourage more airlines to operate to Mattala, noting that carriers such as Azur Air have already expressed interest in commencing services.

He recalled that the Government had earlier introduced the tax exemption to stimulate air traffic through the airport, which has been underutilised since its opening.

He also announced that the Cabinet has approved the proposal submitted by the Environment Minister to establish a wildlife office at the MRIA to ensure the safety of air passengers, airport staff, and airport infrastructure by identifying and properly managing such wildlife threats in advance.

This is also intended to maintain uninterrupted air services by minimising possible delays and disruptions in airport operations.

Minister Dr. Jayatissa said that Cabinet approval was given to establish the wildlife office at the MRIA mainly to prevent frequent damages caused by wild animals to its infrastructure and its operations. A significant cost has been incurred to the Airport and Air Services Company Ltd., to repair such damage to the MRIA’s infrastructure.

The Minister said 10 Civil Defence Department soldiers would be attached to the wildlife office proposed to be set up in the MRIA.

Bandaranaike International Airport (BIA) recorded a 14.4% year-on-year increase in air traffic during the first eight months of 2025, reflecting a steady recovery in aviation activity, the Ministry of Transport, Highways, Ports, and Civil Aviation said.

Between January and August, the airport handled 44,185 flight movements compared to 38,607 in the same period last year. August saw the highest traffic so far this year, with 5,976 aircraft movements.

Air travel continues to strengthen ahead of the upcoming tourist season, and steps are being taken to manage higher flight volumes and maintain operational efficiency for passengers and airlines, aviation authorities said.

The Government of Sri Lanka, working with the Asian Development Bank (ADB), has introduced a special program for Micro, Small, and Medium Enterprises (MSMEs). This initiative allows MSMEs lacking adequate collateral to obtain loans through 13 selected banks and financial institutions, including Seylan Bank. Through the collaborative launch of the National Credit Guarantee Institution Ltd. (NCGIL), the Bank with a Heart’s support reaffirms its continued commitment to inclusive financial empowerment and holistic simplified solutions aimed at strengthening national economic development.

Through the NCGIL’s enabling of uncollateralised lending through partial credit guarantees, banks will be able to assess entrepreneurs based on cash flow and business viability other than asset security, marking the first national-scale, risk-sharing credit guarantee model introduced in Sri Lanka, with Seylan Bank playing a critical role in its implementation. Backed by the Government, the Ministry of Finance, and Economic Stabilisation and National Policies, and ADB, NCGIL aims to resolve the limited access to capital due to insufficient collateral that functions as a persistent barrier to success for MSMEs.

The initiative will allow MSMEs to fund capital expenditure and permanent working capital needs with eligible loans ranging from Rs. 500,000 to Rs. 25 million. The NCGIL will secure up to 67% of qualifying loans, in case of eventuality under the guarantee scheme. Additionally, a guarantee fee of 1% to 2% per annum, based on the business’s risk profile, will be applicable and recovered annually on the outstanding guaranteed amount. Special consideration is afforded to priority sectors including women-owned or managed businesses, manufacturing enterprises, tourism, agriculture and information technology, and export-oriented industries

As part of this initiative, the LIYA SHAKTHI Guarantee Scheme has been introduced to strengthen access to finance for women-owned and women-led MSMEs. This program provides enhanced guarantee coverage of up to 80% of the loan amount or capital outstanding, compared to the 67% coverage available under the standard guarantee scheme currently operated by the NCGIL. By supporting women entrepreneurs with greater financial security, LIYA SHAKTHI aims to empower female-led enterprises and encourage their active contribution to Sri Lanka’s economic growth.

Working to accommodate applications for MSME loans under the NCGIL scheme, Seylan Bank’s goals of enabling transformation and empowering power with solutions aligns with the initiative’s purpose to encourage aspiring entrepreneurs and underserved business owners. Through the NCGIL, Seylan Bank aims to expand access to sustainable credit, helping unlock the untapped potential of Sri Lanka’s MSME sector while contributing to national economic resilience and inclusive growth.

Discussing their collaboration with the NCGIL, Seylan Bank Chief Operating Officer Ranil Dissanayake said, ‘As the Bank with a Heart, we have a vested interest in helping emerging businesses find their feet and excel. As a flexible financing option, we’re excited to support the National Credit Guarantee Institution as it moves to back the aspirations of businesses that will potentiate an economic boom by driving innovation, job creation, and community upliftment.’

WindForce PLC yesterday said that it has acquired a 51% equity stake in Safe Power International Ltd., to develop a Rs. 4.2 billion 10-megawatt wind power project in Alankuda, Puttalam.

The remaining 49% of Safe Power International will be held by Arinma Power Ltd., with a shareholder agreement between the two parties signed on 3 October.

The project, estimated to cost Rs. 4.2 billion, will be financed through a 75:25 debt-to-equity mix. WindForce said the investment is in line with its long-term strategy of expanding its renewable energy portfolio and will support the company’s earnings growth and sustainability targets.

WindForce, listed on the Colombo Stock Exchange, is an independent power producer with a diversified portfolio of wind, solar, and hydropower projects both locally and overseas.

The Finance Ministry has appointed Sunimal Weerasooriya to the Board of Bank of Ceylon as an Independent, Non-Executive Director.

The appointment was made based on the recommendations of a five-member special committee and approval of the Central Bank of Sri Lanka.

Weerasooriya is a technology professional with over 30 years’ experience across digital payments, logistics, automated clearing house/payment infrastructure, information security, BPO, cash management, investment banking, and production and training.

He specialises in technology strategy, digital transformation, technology management, technology transfer, business strategy and innovation.

He was the former Director General/CEO of LankaPay Ltd. and was instrumental in setting up LankaPay, the digital payments backbone infrastructure in Sri Lanka under CBSL guidance.

More recently Weerasooriya served as the Senior Vice President – Technology and Innovation at Transnational Group, Singapore and also functioned as the Country Director of Transnational Group of Companies in Sri Lanka as a seconded role.

He has served as Board Director of many companies in diverse sectors such as Transnational Technology Solutions Lanka Ltd., Transnational Lanka Ltd., Pronto Lanka Ltd., Mountain Hawk Express Ltd., MMBL Money Transfer Lt., MMBL CyberSkills Ltd., Hanwella Rubber Products Ltd., and Sri Lanka Computer Emergency Response Team.

Weerasooriya currently serves as Independent Non-Executive Director of Synapsys Ltd. He is also an Accredited International Mediator of Singapore International Mediation Institute, Sage Mediation, Singapore and IADRC, Sri Lanka.

He graduated with a First-Class Honours Degree in Engineering from the University of Peradeniya in 1992 and later obtained several post-graduate qualifications in multiple disciplines such as an MBA from Postgraduate Institute of Management, an MBA in Management of Technology form Asian Institute of Technology, Thailand and an MSc in Project Management from Curtin University of Technology Australia.

He is also a Fellow Member of the Chartered Management Institute of UK.

Global hotel operator Minor International Group yesterday emphasised Sri Lanka’s recovery depends on brand building, better service, and a clean break from discount-led tourism.

Minor International Group CEO Dillip Rajakarier used his keynote at CA Sri Lanka’s 46th National Conference to explain his own journey at Minor, the company’s near-failure during COVID-19, and how it rebounded, then mapped the country’s opportunity and the friction points holding the industry back.

Minor International (MINT) is a global company focused on two core businesses: hospitality and restaurants. MINT is a hotel owner, operator and investor with a portfolio of 643 hotels under the Anantara, Avani, Oaks, Tivoli, NH Collection, NH, nhow, Elewana, Wolseley, Four Seasons, St. Regis, JW Marriott and Radisson Blu brands in 65 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and the Americas.

Rajakarier became CEO of Minor Hotels in 2011 and Group CEO of Minor International in early 2020 as the pandemic hit. Today, he oversees more than 530 properties in 56 countries, along with food and retail businesses of about 2,500 dining outlets and nearly 400 points of sale. His finance and IT background pushed digital transformation across operations and strategy.

The defining test was the 2018 acquisition of NH Hotel Group. ‘At the time, we had around 120 hotels and we set out to buy 385 more. It looked like the best deal in 2018 and became the worst deal in COVID,’ he said. With hotels and restaurants shut, Minor lost about a billion dollars in 18 months.

‘It is not how you fall, it is how fast you rebound,’ he said, noting the company delivered record results by 2022 and is now expanding NH brands into new markets. Minor has roughly 85,000 rooms and hosts about 85,000 guests a day, which he framed as the payoff for thinking global and taking calculated risks. ‘To take risks and fail is not a failure. If you do not take risks, you fail.’

He told Sri Lanka to build clusters that link tourism with IT, logistics, and agriculture, and to move from being a producer to a brand builder. He cited Minor’s food play in Thailand, which shifted from franchising a global pizza chain to creating The Pizza Company, localised for Thai tastes and later franchised abroad. The lesson, he said, is to own the brand and the story.

Tourism should be Sri Lanka’s springboard, but not by chasing volumes. ‘We talk about 2 million tourists. That does not add to GDP unless it is value tourism,’ he said. He pointed to Thailand’s ‘soft power’ boost from the White Lotus series, filmed in Minor hotels, which helped lift rates by more than 40%. By contrast, Sri Lanka is positioned as one of the cheapest destinations, where a room can be had for about $ 60. ‘For $ 60, I cannot travel from London to Birmingham,’ he said.

He called for a national brand that is consistent, powerful, and aspirational. ‘Tourists do not buy hotels. They buy a story.’

He described Sri Lanka as a living museum, wellness sanctuary, and adventure playground that can win on authenticity if the service chain works. A recent fast-track arrival in Colombo still took him about an hour because the business-class lane doubled for airline crews.

‘This is not seamless tourism. This is painful tourism,’ he said.

His prescription was simple. Invest in infrastructure and people. Train for service. Make airports and roads work. Remove frictions that kill the premium the country seeks.

Sustainability, he said, must be strategy, not marketing. The next wave of travellers will choose destinations that enforce it. Sri Lanka can lead in eco-tourism, community tourism, and wellness. Get this right and tourism brings foreign exchange and rebrands the nation as authentic and resilient.

As Sri Lanka transitions from economic stabilisation towards a path of accelerated, inclusive growth, with a renewed emphasis on private sector-led development, Day 2 of the Sri Lanka Economic and Investment Summit 2025, organised by the Ceylon Chamber of Commerce, will host a dedicated session titled ‘Why Sri Lanka – Investor View’.

The session will examine how strategic investments, and export expansion, among other key strategies, can contribute to increasing national output and per capita income, and how investors view this trajectory, and will open with a keynote address by IFC South Asia Regional Director Imad Fakhoury.

He oversees IFC’s strategic investments and advisory interventions in South Asia, leveraging the World Bank Group (WBG) to promote sustainable private-sector led growth and accelerate the region’s transition to a greener, more inclusive, and resilient development model. Fakhoury focuses on innovative products and transformative technologies, encouraging global and regional integration, strengthening capital markets, and increasing competitiveness.

A panel discussion following the keynote will bring together leading voices from diverse industries to share practical insights on the investment climate and what it will take to attract and sustain long-term capital.

Joining Fakhoury in the discussion will be Axiata Group, Berhad Group CEO/MD Vivek Sood, Variosystems Ltd., Managing Director Thevan Satheeswaran, Unilever Sri Lanka Chairman/CEO Ali Tariq, and CHEC Port City Colombo Ltd., Deputy Managing Director Thulci Aluwihare. The session will be moderated by 5-hour International Corporation Ltd., COO Kasturi C. Wilson.

SLEIS 2025 will take place on 2-3 December at the Shangri La Hotel Colombo.

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) convened an exclusive forum for Institutional Fund Managers themed ‘Be a Part of the Capital Market’s Growth Story – One Vision for A Resilient Market’ recently.

The forum, directed towards the nation’s foremost Institutional Fund Managers, was a high-level platform for the collaboration in exploring and capitalising on opportunities that the Sri Lankan capital market offers.

The forum serves to underscore the steadfast commitment of SEC and CSE to facilitate the long-term creation of value and to bolster institutional engagement in rising capital market growth. The proceedings were marked by the presence of several senior experts from the public and financial sectors, including Labour Minister and Economic Development Deputy Minister Prof. Anil J. Fernando, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, SEC Chairman Senior Prof. D.B.P.H. Dissabandara, CSE Chairman Dimuthu Abeyesekera, CSE CEO Rajeeva Bandaranaike, and Lynear Wealth Management Co-Founder and Managing Director Dr. Naveen Gunawardane.

A high-level panel discussion formed the principal component of the program moderated by Ceylon Chamber of Commerce Chief Economic Policy Adviser Shiran Fernando. The panel discussed the future of allocations into equity amidst the ongoing financial climate, the role of digital democracy in maintaining the Government’s policies of good governance, the SEC’s new strategic plan ’12 Pillars One Vision for a Resilient Market’ as well as questions from the investment fund managers, such as the role of the EPF and ETF moving forward. The robust exchange afforded fund managers the opportunity to examine long-term investment paradigms and the growth of the capital market.

Labour Minister and Economic Development Deputy Minister Prof. Anil J. Fernando, in his keynote address, articulated the Government’s perspective on the favourable investment culture that has arisen in the country through the stabilisation of inflation at 5%, assuring the forum that ‘Our Government’s key role is that of a facilitator rather than being a part of the politicisation. Giving the freedom and autonomy for all these agencies to come out with your expertise and competencies.’ To that end, the Minister stated that the Government’s pre-existing guidelines on the capital market aimed at creating a level playing field, enforce rule of law, and bring new enactments to enhance investor confidence.

During the panel discussion Central Bank Governor, Dr. P. Nandalal Weerasinghe, touching on Dr. Gunawardane’s presentation, spoke of how the ongoing commitment to fiscal discipline has and will continue to produce a sustained positive current account balance. He added, ‘We have generated domestic savings which is more than enough for investment needs in the country. This is a new situation.’ He compared the current macro-economic environment to past decades, which were marked by current account deficits and constrained domestic savings. Furthermore, the Governor stated that stable inflation in a low interest environment would encourage investors seeking returns to look beyond just the banking sector.

Asked at the panel discussion about the SEC’s landmark strategic plan titled ’12 Pillars One Vision for a Resilient Market,’ SEC Chairman Senior Prof. D.B.P.H Dissabandara, reiterated its applicability to institutional investment funds – specifically the consolidation of funds, both domestic and international. He noted the SEC’s dual role as both regulator and facilitator and cited the SEC’s success in creating a level playing field and ensuring transparency in the capital markets. Lauding the Central Bank, he noted that the state of the economy has transitioned from ‘the state of rescue to recovery. The next phase is growth – and you cannot grow without capital. Thus, we must consider the investment avenues and consider which segments of the economy we wish to prioritise, which requires centralised decision-making.’

CSE Chairman Dimuthu Abeyesekera noted the underrepresentation of the population in the capital market was a barrier to growth, with Sri Lanka’s 50,000 active investors amounting to only 0.2% of the total population. He explained that outreach beyond the Western Province is necessary, as account openings outside the province currently represent only 39% of the total openings. CSE has already established ten branches outside Colombo, with branches in all nine provinces and aims to create twenty-five branches – a branch per district. By the year end, the CSE will open four more branches in Kegalle, Galle, Maharagama and Gampaha. Such outreach targets potential investors who have traditionally relied on the banking sector for returns and, due to low interest rates, may seek alternative investment avenues. These investors, Abeyesekera noted, are vulnerable without a trusted market facilitator. ‘We, the CSE, must fill that gap. We are regulated by the SEC and are a legalised entity. Outside the Western Province, there are no investment opportunities apart from the banking sector.’

CSE CEO Rajeeva Bandaranaike, contextualised the forum’s role, outlined the history of share trading in Sri Lanka, and highlighted the role the CSE plays as it commemorates its 40th anniversary. Acknowledging the noteworthy progress made over the years, he also highlighted the challenges of the future – namely, expanding the breadth and depth of the market. He emphasised the efforts to address these challenges, ranging from financial literacy drives, improving market infrastructure, and creation of new capital instruments. Noting the dominance of both domestic institutional and retail investors, he observed that the low interest regime has renewed investor interest in the capital market. Addressing the audience, he said ‘Institutional Funds play a catalytic role in the overall development and broadening of the market by providing professional portfolio management services with due diligence, integrity and financial acumen required, while also contributing to liquidity and activity in the secondary market.’

Finally, in his presentation, which primed the panel discussion, Lynear Wealth Management Co-Founder and Managing Director Dr. Naveen Gunawardane, spoke on the paradigm shift in equities. In his in-depth analysis he explored how the transformed macro-economic environment, resulting from the Government’s financial discipline, would compel institutional funds to reconsider sole reliance on the debt market if they wished to achieve their target returns. Dr. Gunawardane noted, ‘If the country can run a primary surplus which in turn can lead to more stable interest rates, then it is going to force all of us to reconsider our asset allocation. The fundamental question we, as institutional investors, must ask ourselves is; can you meet your target return through fixed income alone? In this new macro-economic environment, you may find that you cannot.’ Dr. Gunawardane noted at the forum that institutional investors with pre-existing equity investments should consider increasing their allocations while those without should seriously consider initiating them if the underlying assumption was that the government would continue with the Central Bank Act and the Public Finance Management Act beyond the end of the IMF program.

The forum is part of a broader initiative to engage the wider investor market in the healthy growth currently underway in the capital market, and to empower institutional investors to exercise judicious allocation decisions that support both growth and portfolio diversification. Both the SEC and CSE are committed to sustaining this effort through continuous engagement and the convening of similar strategic forums across the country.