Category: Daily Financial Times

The unit trust industry of Sri Lanka reported a 16.5% year-over-year growth of its assets under management (AUM) to Rs. 597 billion as of end-November 2025.

These assets are currently managed across 85 funds by 16 management companies.

Industry AUM continues to be bolstered by strong inflows into equity-related funds, which recorded Rs. 3.4 billion in new funds during the month. Additionally, the industry saw 2,945 new unit holders invest in the market in November, with a total of 27,720 new investors added year-to-date.

This indicates a growing familiarity and acceptance of unit trusts as an alternative investment tool among investors. As of end-November, the total number of unit trust investors in the market stood at 141,252, up approximately 25% year-over-year.

Commenting on the industry results, Unit Trust Association of Sri Lanka (UTASL) Vice President and First Capital Asset Management Ltd. CEO Kavin Karunamoorthy said: ‘We are extremely encouraged to see the upward direction the industry has been heading in this past year. However, we believe there is more to be done. With the recent success of our ‘Investor Awareness Initiative’ held in October, we continue to remain focused on strengthening financial literacy and investor participation across the country in unit trusts.’

‘These efforts are carried out in collaboration with the SEC and Colombo Stock Exchange (CSE), and we believe the recently launched ‘A Share for Each – A Unit for Everyone’ national initiative by the SEC to promote the industry will help activate and grow the investor base further,’ he added.

Securities and Exchange Commission of Sri Lanka (SEC) Chairman Senior Prof. Hareendra Dissabandara recently said that unit trusts were crucial to deepening Sri Lanka’s capital markets by enabling wider public participation through accessible, well-regulated and professionally managed investment options.

‘Unit trusts open the door for ordinary citizens, even those with small savings, to become investors. This builds financial inclusion, encourages savings to flow into productive investments, and ultimately strengthens our capital market and national economy,’ he said.

‘Every investment carries some risk, but unit trusts are one of the safest ways to invest in the market. They are regulated by the SEC and held under the custody of independent trustees, often banks, who ensure that your money is not misused. The funds are required to disclose their performance regularly, so investors can see how their money is growing. Transparency and accountability are built into the system,’ Prof. Dissabandara added.

The International Monetary Fund (IMF) on Friday underscored both support and caution as the country seeks emergency assistance under its Rapid Financing Instrument (RFI) in the aftermath of Cyclone Ditwah, warning that the country’s hard-won economic recovery remains vulnerable to fresh shocks.

Speaking at a virtual press conference, IMF Mission Chief for Sri Lanka Evan Papageorgiou said the supplementary allocation of around $ 206 million is intended to go beyond immediate disaster relief and help sustain recovery efforts.

‘The supplementary budget will help bridge the gap between immediate humanitarian needs and the longer term reconstruction efforts,’ Papageorgiou said.

He noted that the cyclone struck at a particularly sensitive moment, just as Sri Lanka was emerging from one of the deepest economic crises in its history. According to Papageorgiou, the IMF-supported reform program under the Extended Fund Facility (EFF) has already begun to deliver tangible outcomes.

‘These include a robust economic recovery, price stability, and progress in rebuilding foreign exchange reserves,’ he said, adding that revenue-based fiscal consolidation and public financial management reforms have strengthened fiscal discipline and reduced risks.

On debt sustainability, Papageorgiou said Sri Lanka’s restructuring efforts have provided critical breathing space. ‘Debt restructuring has moved public debt towards a more sustainable track,’ he said.

However, he issued a blunt warning that the recovery remains incomplete. ‘The economy remains fragile and GDP has not yet returned to its pre-crisis level,’ Papageorgiou cautioned.

Given the scale of devastation caused by Cyclone Ditwah and the time required to establish credible estimates of its economic impact, the IMF has deferred the Fifth Review under the EFF. Papageorgiou said a fresh IMF mission will visit Sri Lanka in early 2026.

‘The IMF will field a mission to Sri Lanka in early 2026 to resume discussions on how the program can best support recovery and reconstruction efforts while preserving the objectives and policy priorities that have underpinned the recent progress,’ he said.

Papageorgiou described the economic fallout from the cyclone as ‘significant and still unfolding,’ noting that while it is too early for a high-confidence assessment, short-term economic activity is likely to be affected.

He identified agriculture and tourism as the sectors most exposed to the shock.

He also warned of broader macroeconomic spillovers. Inflation is likely to rise due to supply disruptions, while the current account deficit is expected to widen over the coming year. Even so, he said Government relief measures, backed by the IMF and other development partners, should help cushion the impact.

‘The Government’s relief measures supported by the IMF and other development partners should go some way to addressing these challenges and should lay the groundwork for recovery,’ Papageorgiou said.

In the immediate term, he stressed the need to prioritise people over numbers. ‘In the short term, the authorities need to accommodate the significant natural disaster and act to help those affected the most and protect lives and livelihoods,’ he said.

At the same time, Papageorgiou stressed that emergency spending must adhere to strict governance standards.

‘The authorities need to ensure that emergency spending is efficient, well-targeted, and transparent,’ he said, adding that all such expenditure should comply fully with the Public Financial Management Act and be supported by strong monitoring and routine disclosure.

On monetary policy, he reiterated the need for discipline, urging the Central Bank of Sri Lanka (CBSL) to continue avoiding money creation to finance the Budget.

Papageorgiou said sustained reforms will be essential to restoring stability and supporting reconstruction, including improvements in public investment management.

‘The steadfast implementation of reforms will be crucial to restoring macroeconomic stability and supporting Sri Lanka’s recovery. Public investment management reforms will help prioritise reconstruction projects and ensure value for money,’ he said.

He also noted that the CBSL has already announced measures to support borrowers affected by the disaster and stands ready to provide liquidity support to the financial system if needed.

Papageorgiou said the IMF is working closely with Sri Lankan authorities to determine how best to support the country and complete the next EFF review as quickly as possible.

‘We are working closely with the authorities to understand how we can help and how to complete the next review under the EFF program as soon as possible,’ he said.

He reiterated that the core objectives of the IMF-supported program remain unchanged: restoring fiscal and debt sustainability while protecting the vulnerable, safeguarding price and financial sector stability, rebuilding external buffers, strengthening governance, and advancing growth-oriented structural reforms.

‘Our shared objectives remain restoring fiscal and debt sustainability while protecting the vulnerable, safeguarding price and financial sector stability, rebuilding external buffers, strengthening governance, and advancing growth-oriented structural reforms,’ Papageorgiou said.

Papageorgiou also praised the Sri Lankan authorities for their response to the disaster and reaffirmed the IMF’s commitment to the country.

‘Let me conclude by commending the Sri Lankan Government and the CBSL for their swift and decisive response to the disaster. The IMF remains dedicated to supporting Sri Lanka and safeguarding its hard-won gains and navigating the road ahead,’ he added.

Verité Research Executive Director Dr. Nishan de Mel yesterday reiterated his warning that accepting the International Monetary Fund’s (IMF) proposed $ 206 million Rapid Financing Instrument (RFI) to address post-Ditwah recovery could impose a high effective cost on Sri Lanka.

‘The IMF has sent a positive signal by approving an RFI for Sri Lanka, and it provides options. But the decision to accept it should be taken with full awareness of the costs and a proper evaluation of alternatives,’ Dr. de Mel said in a post on ‘X.’

Last week, Dr. de Mel warned that the effective cost of IMF RFI financing could exceed 6% in US dollar terms and rise above 11% in rupee terms once exchange rate effects and Special Drawing Rights (SDR)-linked charges are factored in. He also pointed to IMF time-based surcharges, which add a further 2.75% after three years, significantly increasing the long-term cost of such borrowing.

Dr. de Mel’s caution echoes his stance ahead of Sri Lanka’s 2022 default, when he criticised the Central Bank of Sri Lanka’s (CBSL) decision to settle a $ 500 million international Bond maturing in January 2022. At the time, then CBSL Governor Ajith Nivard Cabraal argued the payment would send a positive signal to markets, but Dr. de Mel warned it would merely delay an inevitable default while draining scarce foreign reserves.

He argued that, with ratings already deeply distressed, the marginal damage from further downgrades would be limited, whereas running down reserves would inflict greater harm on the economy, including shortages of essential imports such as medicines.

The then Government went ahead and settled the $ 500 million Bond, and defaulted in a worse-off position.

Dr. de Mel is now warning against increasing the debt burden further.

He noted that domestic rupee borrowing at current three-year Treasury Bond yields of around 9% would be cheaper than the effective rupee cost of the IMF RFI loan, while domestic US dollar borrowing could also offer a lower-cost option.

As an alternative, Verité proposed issuing a Domestic US dollar Bond dedicated to cyclone recovery, potentially via a yield-capped second-price auction. Dr. de Mel said Sri Lankans, including the diaspora, are already placing US dollars with local banks at rates of about 5%, indicating available appetite at lower yields.

He also suggested exploring an Environmental, Social and Governance (ESG)-linked International Sovereign Bond (ISB) tied to cyclone recovery performance indicators and underwritten by a multilateral development bank to reduce borrowing costs.

Dr. de Mel proposed seeking disaster recovery grants of around 1% of GDP, or approximately $ 1 billion, from multilateral development banks and bilateral partners instead of adding to the debt stock. He also called for legal adjustments to expand spending space, suggesting Parliament move a resolution under Section 16 of the Public Finance Management Act of 2024 to temporarily lift the 13% of GDP ceiling on primary expenditure in 2026 to accommodate cyclone-related recovery.

‘There is no immediate liquidity constraint, and recovery spending will take time,’ Dr. de Mel said, stressing that evaluation-based debt management decisions were essential to avoid repeating past errors.

However, the IMF in a statement on Friday and the Government argued separately that the RFI is essential to avoid Balance of Payments pressures due to a Rs. 700 billion injection for the post-Ditwah recovery comprising Rs. 500 billion via a supplementary estimate and Rs. 200 billion diverted from capital expenditure, according to President Anura Kumara Dissanayake’s comments to Parliament on Friday.

On a weekend where none of the other 10 clubs were able to pick up full points, Group A table leaders Police SC were the only ones to do so, beating Chilaw Marians CC by an innings and 154 runs in a Major Club 3-Day League match played at the Colts Grounds yesterday.

The win consolidated Police SC’s position at the top of the table, opening up a 12-point gap against their nearest rival Colts. The win was contrived by Police SC skipper Ashen Bandara, who struck a brilliant double century to put his team firmly in the driving seat with a total of 477, and by the seam cum spin combination of Nipun Premaratne (match bag 5/64), Dilum Sudeera (5/102), and off-spinner Nalin Priyadarshana, who took 6/37 to put out Chilaw Marians CC for 170 in the second innings after being asked to follow-on 324 behind. Lasith Lakshan top-scored for Chilaw Marians CC with 89 off 144 balls (9 fours, 1 six).

Colts and Nugegoda SWC, the nearest rivals to Police SC, won their matches in the first innings.

Colts dealt Bloomfield a severe chance of retaining their title with another first innings loss to the defending champions at NCC Grounds.

Trailing Colts by 66 runs in the first innings, Bloomfield managed to hang on in their second innings to score 238-9 to force a draw. Ravindu Fernando’s 12th first-class hundred – 100* off 146 balls (7 fours, 4 sixes) – helped Bloomfield in their cause. Right-arm seamer Udith Madushan picked up three further wickets for a match return of seven wickets.

Tillakaratne Sampath, brother of former Sri Lanka Captain Tillakaratne Dilshan, belied his age of 43 to score an undefeated 129 (off 269 balls, 7 fours, 5 sixes) and share a fourth wicket partnership of 106 with Pathum Kumara (55 off 79 balls, 7 fours) to lead Nugegoda SWC to a first innings win against Panadura SC at the Welagedara Stadium, Kurunegala.

Having shot out Panadura SC for 118, Nugegoda SWC put themselves in a position for an outright win by replying with 318-5, an overall lead of 200. However, Panadura SC put up a better batting performance second time around, scoring 307-4 with Test opener Oshada Fernando leading the way with a defiant 128 off 230 balls (13 fours) and being involved in two century partnerships – 108 with Vishwa Chaturanga (50) and 103 with Sasindu Malshan (44).

In a battle for top position from Group B, BRC edged out Tamil Union in the first innings in a close contest at the Mahinda Rajapaksa Stadium, Sooriyawewa.

An opening stand of 172 between Heshan Danushka (72 off 194 balls, 6 fours) and Saminda Fernando (92 off 192 balls, 6 fours) set BRC on course for a comfortable first innings win. But Tamil Union hit back, picking wickets at regular intervals so that BRC had to fight hard to go past the Tamil Union total (309), which they finally did, replying with 312-8 declared. Tamil Union were 76-2 in their second innings.

Moors SC also had a narrow first innings win over NCC at the CCC Grounds.

Replying to NCC’s 296, Moors SC, resuming at 261-6, managed to squeeze past that total, scoring 317 depending largely on Shehan Fernando’s knock of 50* off 93 balls (5 fours, 1 six). NCC scored 103-2 in their second innings.

In the battle of the wooden spoonists, Kurunegala YCC (295) got the better of Badureliya SC (211), taking a first innings lead of 84 at the P. Sara Oval. Badureliya SC scored 216-5 in their second innings.

Marking a major leap forward in the country’s digital transformation journey, SLT-MOBITEL, has made its 5G network publicly available, enabling Sri Lankans to experience the power and possibilities of next-generation

connectivity.

Beyond unprecedented speed and ultra-low latency, SLT-MOBITEL 5G represents a transformative ecosystem that will redefine how Sri Lankans learn, work, and lead their lifestyle. The technology has the potential to revolutionise key sectors such as education, healthcare, manufacturing, and enable innovation at scale. By accelerating digital inclusion and empowering enterprises, SLT-MOBITEL 5G will lay the foundation for a future-ready, knowledge-driven economy, positioning Sri Lanka to compete in the global digital landscape.

As part of this landmark chapter, SLT-MOBITEL hosted a 5G interactive experience at One Galle Face Mall (OGF), where the public experienced firsthand the promise of 5G and witnessed its potential in action.

The SLT-MOBITEL 5G experience at OGF invited visitors to explore augmented (AR) and virtual reality (VR) applications, real-time gaming, and live speed demonstrations, showcasing the power of 5G.

The event was attended by Digital Economy Deputy Minister Eng. Eranga Weeraratne, Digital Economy Ministry Acting Secretary Waruna Sri Dhanapala, SLT Chairman Dr. Mothilal De Silva, Board of Directors, CEO Imantha Wijekoon, Mobitel Chief Operating Officer Sudharshana Geeganage, and the senior management of SLT-MOBITEL.

Speaking on this milestone, Geeganage said: ‘5G is a game-changer and a critical enabler of digital transformation across sectors.

It has the potential to

propel Sri Lanka into a new era of connectivity and economic growth that is inclusive, sustainable, and meaningful for every citizen. By making 5G publicly available, SLT-MOBITEL is leading the way in empowering businesses, institutions, and communities to move forward together towards a future shaped by technology and opportunity.’

This experiential initiative aligns with SLT-MOBITEL’s commitment to bringing advanced digital tools to people across Sri Lanka, helping communities benefit from improved connectivity and democratising access to cutting-edge technologies. SLT-MOBITEL has been laying the groundwork for 5G deployment for many years, including strengthening the network foundation required for advanced mobile and fixed-network technologies.

Additionally, significant investments in modern infrastructure, high-capacity fibre routes, and expanded wireless coverage have created the platform required to deliver 5G at scale in Sri Lanka. These efforts support the country’s digital ambitions and open new possibilities for industries, businesses, and users alike. Reaching today’s milestone of making 5G publicly accessible across Sri Lanka, SLT-MOBITEL laid a strong foundation through the continued expansion of 5G, enabling citizens across diverse regions to experience next-generation technology firsthand. SLT-MOBITEL also expresses its gratitude to the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) for their guidance and support in realising this historic achievement.

Making 5G publicly accessible aligns with SLT-MOBITEL’s mission to lead Sri Lanka into the next era of connectivity and digital advancement. With a proven track record of network reliability, innovation, and countrywide service delivery, the company is uniquely positioned to ensure that 5G’s benefits extend to all Sri Lankans.

Browns Investments PLC through its subsidiary Browns Ari Resort Ltd., has completed the $ 57.5 million (Rs. 17.2 billion) sale of the assets and property of the Barceló Whale Lagoon to ASB Hotel Properties Maldives Ltd.

The company said the transaction was completed following the satisfaction of the conditions precedent set out in the Sale and Purchase Agreement.

The Barceló Whale Lagoon Maldives is a five-star luxury resort comprising 100 villas, including 63 Beach Villas, 30 Water Villas, and seven Beach Suites, each featuring private plunge pools and premium furnishings. The resort offers an elegant beachfront setting and unique marine experiences, including encounters with whale sharks and manta rays.

A year ago, the property was positioned as a private retreat offering luxury in seclusion and panoramic views of pristine shores, with a market value of over $ 55 million. Capital Trust Securities said the successful divestment at $ 57.5 million marks the realisation of significant value from this investment.

Browns Investments on Friday closed unchanged at Rs. 6.80.

In a landmark moment for Sri Lankan golf, the Indian Premier Golf League (IPGL) will stage its first-ever overseas tournament at the iconic Royal Colombo Golf Club (RCGC), marking a significant milestone both for the League and for Sri Lanka’s golfing landscape.

The tournament will be played from 23 to 25 December, facilitated by the prestigious RCGC, Asia’s second-oldest golf club.

The IPGL has rapidly distinguished itself through its innovative format and commercial appeal. Much like the LIV Golf series, the IPGL is a guaranteed-money tournament, offering players assured earnings rather than relying solely on prize-money finishes. This model has attracted strong interest from professionals, providing financial stability while elevating competition standards.

The Colombo leg of the IPGL has also created valuable opportunities for Sri Lankan professionals. Following local trials conducted to identify top-performing talent, Lalith Kumara earned qualification, securing a place in the field and becoming one of the Sri Lankan professionals to compete alongside international players.

Kaya Daluwatte and Kumar Danushan received automatic qualification by virtue of being the 2025 RCGC Ladies’ and Men’s Club Champions, respectively, highlighting the club’s role in nurturing elite talent.

Additional junior and amateur golfers earned their places through competitive trials. The qualified players include Adam Fernando, Reshan Algama, a former RCGC Club Champion, and current World Amateur Golf Ranking (WAGR) player Sachin De Silva, a multiple-time past Club Champion, Kaiyan Johnpillai, and Jevahn Sathasivam.

The hosting of the IPGL’s first overseas event at the RCGC represents more than just a tournament-it signals growing confidence in Sri Lanka as a destination for international golf. For local professionals and amateurs alike, it offers invaluable competitive exposure, learning opportunities, and the chance to measure themselves against high-calibre opposition. (SJ)

In a key appointment for the nation’s urban planning sector, M.G. Hemachandra, a seasoned development expert, has been named Chairman of the Urban Development Authority (UDA).

Hemachandra brings extensive expertise from his tenure as a Senior Specialist and former Chief of Loan Projects at the Japan International Cooperation Agency (JICA) in Sri Lanka. His career highlights include in-depth work in development policy analysis and formulation, economic development program and project design, implementation, and post-evaluation. A veteran in corporate governance, strategic planning, project management, procurement, and contract administration, Hemachandra’s insights extend to public discourse; last year, he authored a compelling opinion piece titled ‘Important Message for Presidential Candidates,’ urging strategic focus on national priorities.

Prior to the JICA, Hemachandra served with the National Water Supply and Drainage Board and the Central Engineering Consultancy Bureau. He has been a dedicated council member of the Institution of Engineers Sri Lanka (IESL) for over 14 years, currently holding Fellow status and the role of Vice President. As the Founding Chairman of the IESL Policy Forum, he has championed engineering-driven policy discussions. Hemachandra also previously served as Vice President of the Association of Consulting Engineers Sri Lanka and sits on the Boards of Management and Advisory Councils for several prominent organisations.

His innovative contributions shone during the COVID-19 pandemic, when he created a demonstrative digital platform to support Mahaweli farmers with a team of volunteers. This initiative underscored his commitment to leveraging technology for rural development.

Academically, Hemachandra holds an MBA in Infrastructure Management, a B.Sc. Eng. (Hons) in Civil Engineering from the University of Moratuwa, a Diploma in Management from the Open University of Sri Lanka, and a Diploma in Commercial Arbitration from the Institute for the Development of Commercial Law and Practice (ICLP). He has also applied his skills as an adjudicator and mediator in construction sector disputes.

This appointment is expected to bolster Sri Lanka’s urban development initiatives with Hemachandra’s blend of technical prowess and policy acumen.

Dialog Axiata PLC has announced its partnership with Starlink to bring high-speed satellite internet solutions to empower businesses, institutions, and underserved communities across the island.

As an authorised agent for Starlink in Sri Lanka, Dialog will enable access to the world’s most advanced satellite technology, delivering high-speed, low-latency internet to areas beyond the reach of conventional network infrastructure and further strengthening the country’s digital connectivity landscape.

Dialog Axiata PLC Director/Group Chief Executive Supun Weerasinghe said: ‘This collaboration marks a pivotal step in our mission to expand coverage and access to reliable, high-speed connectivity in underserved regions. By working with Starlink, we are accelerating our efforts to bridge the digital divide and empower businesses, institutions and communities across Sri Lanka.’

Starlink’s satellite technology complements Dialog’s extensive network footprint by enabling seamless, high-performance connectivity in previously underserved regions benefitting from reliable internet access that enhances productivity, innovation, and growth. This partnership underscores Dialog’s continued commitment to technological innovation and delivering on its promise of The Future. Today.

Enterprise customers can soon access Starlink services through Dialog’s corporate solutions channels. Dedicated support, including installation, servicing, and maintenance, will be provided to ensure a seamless experience.

Police Sports Club registered their first win when they outclassed Sri Lions Sports Club 43/7 to earn a bonus point as well at Longdon Place last weekend.

At the short breather, it was Police who led 24/0.