Category: Daily Financial Times

People’s Insurance PLC has announced the appointment of Chandana Guniyangoda as its new Chairman.

Guniyangoda is a distinguished finance professional, holding dual Fellowships from the Institute of Chartered Accountants of Sri Lanka (FCA) and the Institute of Certified Management Accountants of Sri Lanka (FCMA).

He also possesses a Master’s of Business Administration in Banking and Finance (MBA) from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura, a Master’s of Arts in Financial Economics (MAFE) from the University of Colombo, a BSc in Business Administration (Special) from the University of Sri Jayewardenepura and an Advanced Diploma in Banking and Finance (ACBF) from the Institute of Bankers of Sri Lanka (IBSL). He is also a member of the Institute of Professional Managers and the Association of Professional Bankers of Sri Lanka.

With over 27 years of professional experience, including 19 years in commercial banking, Guniyangoda has demonstrated remarkable achievements in both professional and academic domains.

He has served in various strategic roles, such as Board Director, Key Management Personnel, Industry Expert, and ALCO Officer, and was part of world champion team in Asset and Liability Management. His expertise spans Finance, Strategic Planning, Business Transformation, Process Reengineering, Cost Optimisation, Human Resource Management, Asset and Liability Management, Risk Management, and Regulatory Reporting.

Throughout his career, Guniyangoda has held key managerial positions, including Assistant Vice President – Finance, Strategic Planning and Business Support at NDB Bank PLC, and Director of Development Holdings Ltd.,-a joint venture between NDB Bank and the Export Development Bank of India. He was also ALCO Officer and Senior Executive for Finance and Planning at Sampath Bank PLC and began his career as a Trainee Graduate at Aitken Spence PLC.

He recently provided expert guidance and Finance and Administration specialist inputs in the restructuring of international setups within the country’s agriculture and plantation sectors for the Agriculture Modernisation Project of World Bank and the Ministry of Agriculture.

Guniyangoda serves as the Group Chief Financial Officer (GCFO) of MG Group of Companies. Board Member at New Vithanakande Tea Factory Ltd., and Non-Executive Chairman of CCPI Management Holdings Ltd. He is an honorary member of the Board of Management at CA Sri Lanka SAB Campus and a Non-Executive Senior Director at People’s Bank.

Sri Lanka’s microfinance and money lending sector is poised for a major transformation with the introduction of the Microfinance and Credit Regulatory Authority Act 2025. This landmark legislation replaces the Microfinance Act No. 6 of 2016, introducing a far more comprehensive and structured regulatory framework aimed at protecting borrowers, strengthening institutions, and enhancing transparency across the financial ecosystem.

Microfinance has long played a vital role in supporting low-income households, micro-entrepreneurs, and rural borrowers. Yet persistent regulatory gaps, concerns about unethical lending, and the limited effectiveness of the 2016 Act underscored the need for a stronger, more coherent framework.

Introduction

Efforts to introduce dedicated microfinance regulation in Sri Lanka date back nearly two decades, beginning with discussions between the Central Bank and the Ministry of Finance in 2006. Despite multiple drafts and consultations, these early attempts did not materialise into law, depriving the sector, and millions dependent on it, of a robust regulatory foundation.

Although the Microfinance Act No. 6 of 2016 represented an important milestone, it proved inadequate in addressing the sector’s realities. The shortfall became evident when only four institutions were ever registered under the Act, revealing its limited practicality and inability to attract or regulate the broader microfinance industry. Against this backdrop, the proposed Microfinance and Credit Regulatory Authority Act represents long-awaited and much-needed reform. The new Act is comprehensive, sector-aligned, and responsive to issues that have long challenged both MFIs and borrowers. This article reviews the provisions of the Act and highlights key insights relevant to policymakers, lenders, and the public who seek to understand the benefits and broader implications of this reform.

Establishing a central regulatory authority

A central feature of the Act is the establishment of the Microfinance and Credit Regulatory Authority (MCRA), an independent body mandated to license, supervise, investigate, and enforce compliance across moneylenders and microfinance institutions. Its core functions include regulating licensed entities, coordinating with the Central Bank and other agencies, promoting responsible lending, and safeguarding customer rights. The Authority is also responsible for maintaining sector databases, conducting financial literacy programs and administering a formal complaints mechanism.

Mandatory licencing for moneylenders

The Act introduces a decisive change. All moneylenders must obtain a licence from the Authority to operate legally. Eligible applicants include companies, partnerships, trusts, societies, and certain NGOs registered as companies limited by guarantee. Licences are valid for one year and must be prominently displayed at each business location.

A structured pathway to become a microfinance institution

A key reform is the new two-step licencing process for microfinance institutions (MFIs). Organisations may apply for a microfinance licence only after securing a money lending licence. Eligible applicants include:

Public companies (not private companies), and

NGOs converted into companies limited by guarantee.

Microfinance licences are granted for three years, after which the money lending licence held by the institution is automatically cancelled. This layered structure ensures that MFIs operate under higher scrutiny and governance standards.

Expanded permitted activities for MFIs

The Act significantly broadens the scope of services available to licensed MFIs. These include offering microloans, micro-leasing, microcredit insurance, hire purchase, advisory services, training, and even pawn brokering (subject to approval). This positions MFIs as comprehensive financial service providers serving low-income and underserved segments.

Enhanced oversight and regulatory controls

The Act requires institutions to obtain prior approval for key operational changes, including opening new branches, outsourcing debt collection, altering governance structures, modifying Articles of Association, or reducing capital. Failure to do so may result in penalties of up to Rs. 2 million.

Stronger customer protection mechanisms

Among its most progressive features, the Act imposes strict standards to protect borrowers and ensure fair treatment.

Clear and transparent loan agreements

Loan agreements must be simple, accurate, provided in the borrower’s preferred language, and free from misleading terms. They must clearly disclose interest rates, fees, and conditions.

Prohibited practices

Institutions are explicitly barred from:

Taking signatures on blank documents

Charging interest exceeding the principal

Harassing or intimidating borrowers

Misleading customers

Engaging in discriminatory behaviour

Complaints and counselling mechanisms

The Authority must establish formal procedures for complaints and may set up counselling centres for borrowers experiencing difficulties.

Regulation of interest rates and collections

The Authority is empowered to set maximum interest rates, fees, and penalties, define acceptable collateral, standardise fair recovery methods, and regulate digital lending. This flexibility allows the regulator to respond to changing market conditions and protect consumers from harmful practices.

Fit and proper requirements for leadership

The Act sets high standards for individuals holding leadership positions, disqualifying those with criminal records, histories of fraud or bankruptcy, unpaid debts, or prior regulatory sanctions. This safeguard prevents unethical individuals from influencing the sector.

Robust investigation and enforcement powers

The Authority is granted broad powers to inspect records, visit premises, question staff, and conduct investigations. It may suspend directors or employees, revise unfair loan agreements, impose penalties up to Rs. 2 million or publish the names of non-compliant institutions.

Transitional arrangements for existing institutions.

To ensure continuity, the Act grants a transition period:

Existing moneylenders may continue operations for 24 months but must apply for licencing within the prescribed timeframe.

MFIs licensed under the repealed 2016 Act are automatically recognised but must achieve compliance within 12 months.

This phased approach helps institutions adjust gradually to the new regulatory expectations.

A major step forward for the sector

The Microfinance and Credit Regulatory Authority Act 2025 represents one of the most meaningful reforms in Sri Lanka’s microfinance history. It strengthens governance, enhances customer protection, and establishes clear operational requirements for institutions.

For the industry, it promises higher professionalism and accountability.

For borrowers, it promises dignity, fairness, and safety.

For regulators, it provides the tools needed to build a healthier financial ecosystem.

Pope Leo XIV has conveyed the Vatican’s solidarity with Sri Lankans affected by the recent disaster, Vatican Embassy in Colombo Chargé d’Affaires Rev. Monsignor Roberto Lucchini said on Wednesday.

According to Rev. Lucchini, the Pope instructed him to extend his condolences to those impacted and to affirm the Vatican’s support as the country works through the aftermath.

He said the Pope urged Sri Lankans to hold on to faith and hope as they undertake recovery and rebuilding efforts in the weeks ahead.

The Asian Development Bank (ADB) yesterday said it has approved a $ 200 million loan to support the ongoing Mahaweli Development Program, Sri Lanka’s largest multi-use water resources development initiative.

The program aims to transfer excess water from the Mahaweli River to the drier northern and northwestern parts of Sri Lanka. The Mahaweli Water Security Investment Program Stage 2 Project will directly benefit more than 35,600 farming households in the North Central Province by strengthening agriculture sector resilience and enhancing food security.

The ADB leads the joint co-financing effort for the project, which is expected to mobilise $ 60 million from the OPEC Fund for International Development and $ 42 million from the International Fund for Agricultural Development, in addition to the ADB financing.

‘While Sri Lanka has reduced food insecurity, it remains a development challenge for the country,’ said ADB Country Director for Sri Lanka Takafumi Kadono. ‘Higher agricultural productivity and crop diversification are necessary to achieve food security, and adequate water resources and disaster-resilient irrigation systems are key.’

The project will complete the Government’s North Central Province Canal (NCPC) irrigation infrastructure, which is expected to irrigate about 14,912 hectares (ha) of paddy fields and provide reliable irrigated water for commercial agriculture development (CAD).

It will help complete the construction of tunnels and open and covered canals. The project will also establish a supervisory control and data acquisition system to improve NCPC operations. Once completed, the NCPC will connect the Moragahakanda Reservoir to the reservoirs of Huruluwewa, Manankattiya, Eruwewa, and Mahakanadarawa.

The CAD component will construct 13 pressurised pipe distribution networks to provide reliable and efficient irrigation for high-value crops across 5,039 ha of upland fields. These networks will provide on-farm drip irrigation and ‘water on demand’ for farmers.

The project will transform agriculture production systems by integrating a disaster-resilient value chain from seedling and planting to harvesting and post-harvest handling. It will also enhance access to financial services and agriculture extension services, such as training for farmers.

In upland CAD areas, the project will promote perennial crops with export potential, such as mango, papaya, guava, and passion fruit. In lowland paddy areas, it will support seasonal diversification into other crops, such as mung bean, chili, maize, groundnut, and other vegetables, particularly during the Yala cultivation season from April to September.

The project will also assist farmer organisations in operating as business entities, adopting smart, market-driven production systems with tailored access to financial services, extension support, and marketing through public and private producer partnerships.

Sri Lanka was hit by Cyclone Ditwah in late November, resulting in the country’s worst flood in two decades and the deadliest natural hazard since the 2004 tsunami. The disaster damaged over 160,000 ha of paddy fields along with nearly 96,000 ha of other crops and 13,500 ha of vegetables.

The Inter Club Rugby League 2025/2026 resumes today (12 December) after two-week pause, with Week 5 fixtures finally set to unfold following the postponement of Weeks 3 and 4 due to severe flooding across the country.

With the league restarting under improved conditions, teams return with renewed purpose as the competition regains full momentum. The spotlight will fall on the much-anticipated on the Colombo derby between CR and CH on 13 December, a clash expected to draw a very large crowd at Longdon Place. CR, President, Tikiri Ellepola and his committee had kept the gates opened free for the fans.

CR and FC are determined to extend their unbeaten run with skipper and former Science College player, Lasindu Karunathilake. The Longdon Place club have already notched two good wins, first a commanding 65/8 victory over Sri Lions, followed by a 19/0 lead against Army before the match was halted at halftime due to heavy rain in Panagoda.

Their squad receives a significant boost with two players, Samoan Alvarez Gasolo, who plies his trade in Australia, is set for his debut and is expected to bring immense physicality and attacking presence to CR’s backline. Joining him is young sensation Vishenka Silva, the 2025 Peterite skipper, whose pace and agility provide CR with fresh attacking firepower.

CH and FC, meanwhile, will bank on their youthful core in a bid to upset CR’s unbeaten streak. Skipper Janidu Dilshan, supported by His two deputies Danushka Malitha and Maliksha Perera, shoulders the responsibility of guiding the Havies outfit toward improved consistency. Their defensive organisation and discipline will be crucial against CR’s fast-paced and expansive approach.

Referee Ishanka Abeykoon will officiate this key encounter.

Week 5 opens on 12 December with Sri Lions hosting Army SC at Longdon Place. Sri Lions, captained by Ganidu Weerasinghe and supported by Aiden Fernando and Mohamed Nizran, are eager tobounce back after losses to CR and Havelocks. Army SC, led by Sudaraka Dikkumbura, remain in search of their first league win following narrow defeats to Air Force and CR, and enter the fixture with renewed determination.

Referee Nipuna Amarathunge will officiate.

The weekend’s action concludes on 13 December with unbeaten Sri Lanka Air Force meeting the Sailors in a clash carrying early implications for top-four Cup segment qualification. Air Force, showing structured play and strong cohesion, appear well positioned to maintain their flawless record. They have got in a national Samoan Under-20 player to their outfit.

Referee Gihan Yatawara will take charge.

The last game of week 5 will see Defending Champions, Kandy Sports Club host Police Sports Club at Nittawela Rugby Stadium. Kandy is expected to play their full team with Dinal Ekanayake and Danushka Ranjan expected to start this encounter.

Referee will be Kelum Sandaruwan.

All Week 5 matches will kick off at 3 p.m., ensuring fans a full slate of high-intensity rugby as the league returns to full flight.

Erling Haaland scored his 34th goal for club and country this season to give Manchester City a 2-1 win at Real Madrid and leave Xabi Alonso’s position as coach of the Spanish giants in grave danger.

Without injured superstar Kylian Mbappe, Madrid took the lead on Wednesday through Rodrygo, but Nico O’Reilly and a Haaland penalty secured Pep Guardiola’s City the three points.

Spanish media reported in the lead-up to the game that a defeat would seal Alonso’s fate as Madrid coach, although his team’s performance was creditable, despite the eventual outcome at a frustrated Bernabeu stadium.

The record 15-time Champions League winners have now won just two of their last eight matches across all competitions, and face a battle for a place in the top eight of the league phase table.

Alonso was forced to leave his team’s top scorer, Mbappe, on the bench, saying it would have been ‘a risk’ to use him amid knee discomfort, and starting 21-year-old striker Gonzalo Garcia instead.

Madrid knocked out City in last season’s Champions League playoff round in February, as Mbappe scored four of their goals in the 6-3 aggregate win.

This was the 15th meeting between these sides, in what has become a modern Champions League classic.

Edinborough Products Ltd., has commenced its SAP Cloud ERP transformation with PBSS Group, one of Sri Lanka’s most trusted and accomplished SAP partners.

This collaboration unites a proudly Sri Lankan manufacturing leader with a technology organisation that has defined the nation’s ERP landscape for more than 23 years. Ernst and Young serves as the consulting party for the project.

The ceremonial event marking the kickoff brought together senior leadership from Edinborough, PBSS, SAP and Ernst and Young. Edinborough Managing Director R.P.M. Zalmy, PBSS Chairman and Managing Director Dr. Madura Gamanayake, PBSS Group CEO Anjana Wijesinghe, SAP Sales Head for Cloud ERP India and the Subcontinent Anand Prabhakar, SAP Account Director Jha Pranjal and EY Principal/Partner Shanaka De Silva attended the event alongside all key stakeholders from both organisations.

Edinborough’s transformation reflects the legacy and ambition of a fully Sri Lankan FMCG institution. Founded in 1973 by C.M.M.R. Pasha, Edinborough has grown from a modest home-based operation into a household name recognised for its sauces, condiments, cordials, beverages and powdered staples. The brand’s reputation for integrity, quality and reliable service has enabled it to build an export presence spanning nearly 30 countries across Asia, Europe, the Middle East, Africa, North America and Oceania. Today Edinborough steps into a more advanced era of growth through the adoption of SAP Cloud ERP, ensuring that its digital infrastructure aligns with the global scale of its business.

PBSS brings to this transformation the authority and confidence of a seasoned implementation partner. With more than 350 ERP deployments across multiple industries, PBSS has become a benchmark technology institution capable of supporting organisations at every level of scale from mid-sized enterprises, complex multi-company structures to large conglomerates with regional and international reach. PBSS remains uniquely equipped to guide companies from mid-market maturity to full enterprise sophistication with precision and strategic clarity.

Edinborough’s decision to advance with PBSS reflects both ambition and trust. The transition from a Tier 3 SAGE environment to the world’s leading Tier 1 SAP Cloud ERP platform marks a deliberate step toward deeper visibility, stronger operational discipline and intelligent enterprise management through SAP Business Suite. PBSS is honoured to continue standing beside Edinborough on this growth journey and to guide the organisation with future-ready expertise.

The combined alignment of Edinborough, PBSS, SAP and Ernst and Young reaffirm the confidence placed in PBSS to deliver a transformation of this scale. Their collaboration signals a shared belief that Sri Lankan enterprises can operate at global benchmarks when empowered by the right systems and supported by the right strategic partners.

SAP Cloud ERP powers many of the world’s most influential corporations and contributes to a significant portion of global commerce. By adopting this platform, Edinborough joins a distinguished international community committed to operating with foresight, intelligence and data-driven clarity. By steering this implementation, PBSS reinforces its reputation as the preferred SAP partner for organisations that value trust, capability and long-term excellence with after-sales support and care.

This is the strength of two Sri Lankan forces moving forward with conviction. A homegrown FMCG leader preparing for its next ascent with a homegrown technology institution demonstrating once again why it stands as one of the most trusted SAP partners in the region, supported by the seasoned guidance of Ernst and Young as the consulting partner of the project.

Visiting US Under Secretary of State for Political Affairs Allison Hooker tells President Dissanayake

The President’s Media Division yesterday said that visiting US Under Secretary of State for Political Affairs Allison Hooker has conveyed to President Anura Kumara Dissanayake that the US has drawn its attention to restarting tariff negotiations with Sri Lanka.

While affirming that the United States stands ready to provide any necessary support to assist Sri Lanka’s post-Ditwah recovery, Hooker expressed support for enhancing tourism between the United States and Sri Lanka, as well as for the growth of trade and maritime operations between the two nations. Furthermore, she said the US would support Sri Lanka’s initiatives to combat drug-related issues.

In October, long before Cyclone Ditwa, the Asian Development Bank warned that Sri Lanka’s recovery will face pressure in 2026 as new US tariffs on apparel and rubber exports start to bite.

While growth this year and in 2025 is expected to hold at 3.9% on the back of manufacturing, construction and services, the ADB projects a slowdown to around 3.3% in 2026 as external demand weakens and job losses filter through.

The report noted that US tariff rates have climbed to their highest levels since the 1930s, pushing Sri Lanka’s effective tariff burden sharply higher. IPS separately estimated that the 20% reciprocal tariff could cut export earnings by $634 million and threaten nearly 16,000 apparel-sector jobs.

The ADB said risks to the outlook remain elevated, citing trade-policy uncertainty, energy-price volatility, Middle East remittance exposure, global demand softness and domestic weather disruptions.

Earlier this week, US-based Newsweek published an interview with President Dissanayake where he said Sri Lanka wanted market access, climate financing and technology partnerships with the US. ‘What we offer (the US) is a strategically placed, stable, democratic partner in the Indo Pacific.’

The National Child Protection Authority (NCPA) has warned of fraudulent moves of certain individuals and organisations offering help for displaced children due to the Ditwah disaster and requests to inform about such offers to the NCPA’s hotline.

‘The Authority has noticed about messages circulating on social media claiming that certain individuals or organisations are willing to take full responsibility for the education, food, and care of displaced children due to Ditwah disaster until they turn 18. We see such offers as fraudulent and dangerous,’ NCPA Chairman Preethi Inoka Ranasinghe said in a statement.

According to the NCPA, it will take strict legal action against anyone attempting to exploit children under the guise of assistance.

The Authority has urged the public to immediately report any such offers or suspicious activity to the 24-hour Child Helpline 1929.

Meanwhile, the NCPA has advised parents and guardians to contact Grama Niladharis, Regional Child Protection Officers, Child Rights Promotion Officers, District Child Protection Officers, District Mental Health Officers, or other authorised Government officials if they receive requests or offers of assistance concerning their children from unknown individuals or external organisations.

‘They may also directly reach out to the NCPA via the 1929 hotline,’ Ranasinghe said in the statement.

Appreciating the public for their support and cooperation, the NCPA stated that for those wishing to contribute to relief efforts for children affected by floods, landslides, and the cyclone, the donors should contact the NCPA, which will facilitate assistance through safe and approved channels.

The NCPA, in its statement, also emphasised the heightened risks faced by children in disaster-affected regions.

According to the Disaster Management Centre (DMC), 878 safe centres across 16 districts are currently sheltering over 86,040 people belonging to 27,145 families. Authorities note that the disaster has caused a profound disruption to the daily lives of both adults and children, many of whom have been separated from their homes, routines, and familiar environments.

The NCPA stated that children, in particular, are undergoing severe psychological stress, uncertainty about their future, and emotional trauma stemming from the loss of parents, relatives, or the absence of their usual school environment.

In such circumstances, the NCPA stressed that the protection of children living in safe centres, temporary shelters, homes, or any disaster-affected location must be prioritised.

The Authority has also emphasised that children could be vulnerable to physical, mental, or sexual abuse as well as neglect during periods of crisis and displacement.

It also stated that protecting children during disasters is a national responsibility and it is important to be vigilant to prevent child abuse and exploitation during this critical period.

In a bid to revitalise micro, small, and medium enterprises (MSMEs) affected by recent disasters, the Government has decided to launch the RE-MSME PLUS and RE-MSME Disaster Relief loan schemes from 2026.

The Cabinet of Ministers on Wednesday approved the implementation of the loan schemes, and these initiatives consolidate previous concessionary programs, including SMILE-III for industrial investments, E-FRIEND-II for environmentally friendly financing, and the earlier RE-MSME scheme, under a unified framework to strengthen the entrepreneurship sector.

The new schemes are expected to provide immediate and medium-term financial support to around 130,000 entrepreneurs across the country. Loans will be offered at a concessional interest rate of 3% per annum, with a maximum grace period of six months.

‘As per the program, MSMEs can access up to Rs. 250,000, while small and medium-scale enterprises (SME) can obtain loans of up to Rs. 1 million,’ Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the post-Cabinet meeting media briefing yesterday.

He said the RE-MSME Disaster Relief component specifically targets businesses disrupted by natural disasters, ensuring continuity and enabling rapid recovery. ‘By streamlining existing programs into a single, more efficient scheme, the Government aims to boost investment, production, and environmental sustainability within the MSME sector, contributing to broader economic resilience and growth,’ he added.

The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.