Category: Daily Financial Times

The Colombo stock market fell sharply yesterday on subdued investor activity, with the ASPI closing at its second lowest point since 28 October and turnover hitting a near five-month low.

The ASPI closed down 0.80% or 182.14 points to 22,662.09 yesterday. The index has lost ground since peaking at 23,659.70 in 12 November. The active S and P SL20 ended down 0.68% or 42.85 points to 6,268.45.

Turnover and volume were low at over Rs. 2.34 billion on nearly 71.6 million shares traded. Foreign investors were net sellers with a net outflow of Rs. 103.46 million.

First Capital Research said the market was weighed down by weak investor interest and reduced turnover which fell 57.5% below the monthly average. The day’s turnover was the lowest since 7 July 2025

The day’s negative contributions were driven primarily by banking counters SAMP, COMB, and HNB supplemented by declines in RICH and DIAL.

Capital Goods sector accounted for 31% of total turnover, followed by Diversified Financials and Banking sectors, which collectively contributed 26%.

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, Diesel and Motor Engineering and LOLC Holdings. Mixed interest was observed in Access Engineering, ACL Cables and John Keells Holdings while retail interest was noted in Lanka Credit and Business Finance, LOLC Finance and HNB Finance.

The Capital Goods sector was the top contributor to the market turnover due to Hemas Holdings, Access

Engineering and ACL Cables, with the sector index losing 0.81%.

The share price of Hemas Holdings decreased by 20 cents to close at Rs. 35.50 and Access Engineering recorded a loss of 70 cents to close at Rs. 69.90. The share price of ACL Cables declined by Rs. 1.75 to Rs. 219.

The Diversified Financials sector was the second highest contributor to the market turnover on LOLC Holdings while the sector index decreased by 0.64%.

The share price of LOLC Holdings edged down 50 cents to Rs. 550 while Diesel and Motor Engineering was also included amongst the top turnover contributors. The share price of Diesel and Motor Engineering lost Rs. 111 to close at Rs. 2,174.50.

John Keells Properties is supporting the Sri Lanka Gem and Jewellery Association (SLGJA) to host its flagship premier gem and jewellery show ‘FACETS 2026’ as the Official Real Estate Partner.

The annual three-day show is scheduled to take place from 3 to 5 January 2026, at Cinnamon Life, City of Dreams.

This collaboration will see the country’s most significant gem fair move to an elite venue, strengthening Sri Lanka’s position as a global luxury destination.

John Keells Group Head of Sales and Marketing/Vice President, Nadeem Shums said: ‘Real estate and jewellery have always represented more than luxury, representing permanence. A gem and a home hold stories, value, and emotion that are passed down from one generation to the next. At John Keells Properties, we craft spaces that endure, much like the masterpieces showcased at FACETS.’

Explaining the commercial rationale for the partnership, he confirmed that the FACETS 2026 exhibition will serve as a key sales platform for John Keells Properties to showcase the remaining 20% of their luxury residential properties. Projects including The Residences Cinnamon Life, TRI-ZEN, VIMAN, and Victoria Golf Resort – Sunrise Ridge Villas will be highlighted at the show.

He affirmed John Keells Properties’ commitment, saying that they are proud to support next year’s exhibition and to stand alongside an industry that carries centuries of heritage. Looking ahead to the exhibition, he said: ‘We look forward to an exceptional show in early January 2026 and to welcoming the world to experience the very best of this island, through its craftsmanship, gems, creativity, and through the landmark developments that continue to shape the future of Sri Lanka.’

He confirmed that the event is set to host over 100 exhibitors and attract delegates from key markets in Asia, Europe, and the Middle East, solidifying the importance of this coordinated effort between the gem trade and Sri Lanka’s largest private sector developer.

SLGJA President Akram Cassim, highlighted the exhibition’s long history and purpose. He noted that FACETS 2026 marks the 33rd edition of the annual show, which has been held since 1991, and has always been more than a trade show; a celebration of heritage and the artistry behind the Ceylon Sapphire.

‘John Keells Properties embodies the same principles that define FACETS excellence, craftsmanship, and enduring value. Their participation as the Official Real Estate Partner reinforces the connection between spaces that inspire and jewellery that transcends generations, elevating the experience for all our visitors,” Cassim said.

Recognised globally as Sri Lanka’s flagship gem and jewellery exhibition, FACETS Sri Lanka attracts international buyers, collectors, and enthusiasts. This year, the presence of John Keells Properties introduces a new dimension to the event, uniting artistry with architecture, and beauty with investment value.

Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam urged the industry to pivot toward higher-value tourism, warning that the country’s current yield per tourist remains far below its potential despite rising arrivals and strong seasonal performance.

Speaking at the Tourist Hotels Association of Sri Lanka (THASL) Annual General Meeting on Monday, Hewawasam said that while the country is on track to surpass key tourism milestones, the average revenue per tourist is still significantly lower compared to competing destinations across Asia.

He noted that most travellers visiting Sri Lanka spend around $ 300 per day, whereas competing destinations such as Malaysia, Indonesia, and island destinations across Southeast Asia report much higher yields.

‘Our challenge is not arrivals, its value. Countries around us are earning far more per visitor. We cannot sustain growth if we continue to attract high volume but low value,’ he said.

He also highlighted that Sri Lanka still struggles with seasonality, experiencing five strong months and seven weaker months.

‘We need year-round appeal. Without that, we cannot meet revenue targets even if arrivals rise,’ he added.

Hewawasam also revealed that Sri Lanka was to lose significant visitor numbers, with airlines cancelling around 45 flights weekly, a trend expected to continue if bottlenecks remain unresolved.

However, he said quick interventions by the private sector and relevant authorities have prevented the loss of 32,000 to 50,000 tourists in recent months amidst strained infrastructure during peak months.

Noting that Sri Lanka already crossed 2 million tourists for 2025, Hewawasam cautioned that volumes alone will not fix structural issues.

He stressed that Sri Lanka needs a minimum of 180,000-200,000 arrivals per month consistently to sustain industry-wide profitability, but more importantly, the country must focus on attracting travellers with higher spending power.

Accommodation bottleneck and domestic aviation constraints

Hewawasam acknowledged a severe accommodation imbalance, noting that Colombo offers more than 11,000 rooms, but many key tourism regions lack capacity.

‘There is a chicken and egg situation; hotels are reluctant to invest because air connectivity is low and airlines do not increase frequencies because room capacity is limited,’ he said.

He said SLTDA has released 3,000 acres for tourism investment, receiving over 130 proposals, with approvals for several expected by year-end. ‘This is aimed at unlocking accommodation supply in key regions,’ he added.

The Chairman stressed that Sri Lanka must build more entertainment, nightlife, events and year-round activities to compete for long-stay and high-spend travellers.

‘Tourists want experiences; entertainment, concerts, curated events and nightlife. We cannot rely only on beaches and heritage. The modern traveller spends on experiences, not just rooms,’ he said.

The Chairman said the destination urgently needs a unified nation-branding strategy to secure sustained growth.

He asserted that Sri Lanka does not simply need more advertising, but a comprehensive, globally aligned brand-positioning campaign.

‘We do a lot of marketing, what we lack is brand positioning,’ he said, predicting that without a strong country brand, Sri Lanka will struggle to compete in a region where destinations such as Japan, Indonesia, and Malaysia are aggressively repositioning themselves.

‘A dedicated marketing and nation-branding unit is being established with support from the World Bank, with a Cabinet paper already submitted. Once approved, it is expected to bypass bureaucratic delays and implement long-awaited global campaigns,’ he stressed.

He said Tourism Development Levy (TDL) revenue remains essential to funding major branding and development initiatives.

Hewawasam said Sri Lanka is simultaneously battling over-tourism during peak periods, particularly in December.

‘Data shows Colombo alone has around 16,000 rooms, but large areas with high tourism potential still lack sufficient accommodation. In many districts, hotel density is less than one property per square kilometre, with some zones offering only 800 rooms in total,’ he pointed out.

He said this imbalance and overcrowding in established hubs and lack of development in emerging ones, stems largely from poor accessibility.

On the aviation front, Hewawasam noted that Sri Lanka needs more domestic routes, more frequencies, and lower seat costs to support regional dispersal of tourists.

He also called for stronger coordination between SLTDA, THASL, and provincial stakeholders to expand visitor experiences nationwide.

‘We cannot grow tourism in isolation. The associations, hotel sector, airlines, and regulators must work together. This is the only way to transform Sri Lanka into a high-value destination,’ Hewawasam said.

Leader of the House Minister Bimal Rathnayake had some harsh words for the media on Monday in Parliament.

‘The media has set this country on fire. The media had worked to turn this country into a graveyard. The media is not so innocent,’ Rathnayake charged during an exchange of strong words with the Opposition leader Sajith Premadasa.

This was after Premadasa criticised the decision to summon a newspaper editor to the CID for the publication of an article related to the police clearance procedures, which the SJB leader said was heavily politicised.

This irked Rathnayake who said that even if it is the media or even a god, if they lie to the people, they must stand against it.

Media personnel are well aware that they are the darling of politicians who are in the Opposition but the moment they come to power they expect the media to be subservient and toe the Government line. Rathnayake is not the first to express such views and certainly will not be the last but maybe it’s time to refresh his memory on the role that this very media played in helping the JVP-led NPP to gain power.

The JVP, before its metamorphosis into the NPP, and even after that till 2024, was confined to the political backwaters and needed all the publicity it could garner to build its public image. To do so, it was not its party cadres or its party publications or social media handlers who helped the party to come out of the wilderness. It was the mainstream media, newspapers and the electronic media.

The majority of the media organisations are privately owned and it is widely known that most are affiliated to political families but despite this, those who make up the seniors in the NPP Government today and even its trade unionists have had the benefit of getting wide publicity. They had hours and hours of television time in private channels and pages of interviews, which gave the party a chance to get their views across. Public events in which the JVP members participated were also given wide coverage when the party wasn’t exactly hot property.

The media on the other hand is not above error and Dr. Shafi’s is a case in point but as a senior Government minister, he should know better than to paint the entire media as evil.

The threatening and intimidation of the media doesn’t help the cause of the Government, certainly not in the long run.

Since taking office, those in Government have developed a phobia toward the media, almost all ministers refusing to talk to journalists, refusing interviews or even giving a comment. Getting them to comment on a subject that comes under their purview has become a tedious process while most Ministers/MPs seem to be under some kind of gag order. Cabinet Spokesman Nalinda Jayatissa makes a weekly appearance at the press briefing but is unresponsive when journalists need a comment, which begs the question why there is an Official Spokesman who refuses to speak to journalists when they need him to.

The Washington Post’s public tagline is ‘Democracy dies in darkness.’

If the Government thinks it can do everything behind closed doors, keep the media out and threaten and intimidate journalists who somehow get the story, it’s a direct threat to democracy. Ministers like Bimal Rathnayake need to get off their high horse and engage with the media, because power is fleeting and should not go to one’s head.

The Government in general also needs to change its attitude in how it engages with the media. It will be a win-win situation for both, and more importantly, for the country.

The United National Party (UNP) has stated that it fully supports the decision taken by Opposition Leader Sajith Premadasa to take on the responsibility for initiating the merger between the UNP and the Samagi Jana Balawegaya (SJB).

The UNP expressed its special gratitude for Premadasa’s personal involvement to unite the two political parties.

Meanwhile, the UNP has appointed a three-member committee consisting of UNP Deputy Leader Ruwan Wijewardene, General Secretary Attorney-at-Law Thalatha Athukorala, and National Organiser Sagala Ratnayake to discuss future activities regarding the proposed UNP-SJB merger. According to the UNP, all discussions on the merger will be taken through the newly appointed committee.

The North East Monsoon Meet 2025, organised by the Royal Colombo Golf Club (RCGC) and sponsored by Dialog Enterprise, delivered exceptional golf, with competitors showing consistency, precision, and remarkable composure across multiple historic trophies.

The Clifford Cup set the tone for the tournament, where Omar Mizran emerged as the winner with an impressive 70+64 for a 134 Nett score. Experienced golfer Chanaka Perera, finishing runner-up on 136 Nett, remained close on his heels, ensuring a tight contest that captured the spirit of the event.

In the Annual Gold Medal, Rohan Pieris delivered the standout gross performance of the round, carding a superb 69 to clinch the title. His rhythm and precision were evident throughout, marking him as one of the tournament’s most consistent golfers. Consistent Husni Uwise, finishing runner-up with a 73 Gross, played a strong round himself, displaying the calm and technical finesse he is known for.

Pieris continued his dominance in the RCGC Centenary Trophy, capturing yet another win with a combined Nett tally of 272 (62+62+76+72). His sustained excellence across four rounds made this one of the most commanding victories of the meet. The runner-up position went to youngster Thejas Rathiskanth, who posted a solid 277 Nett through steady play and perseverance across the challenging format.

The Mackinlay Qualesh event saw Dulanka Weraduwage claim the title with a 65 Nett, showing excellent short game control. Omar Morgan, adding another top-two finish to his week, followed closely with a 67 Nett, proving his consistency across events.

Rounding off the meet, the Nandasena Perera Trophy saw Husni Uwise take top honours with a 144 Gross (73+71). His composed performance set the benchmark, while Chanaka Perera ended as runner-up with 145 Gross, ensured an exciting finish to an outstanding week of golf.

Bairaha Farms PLC reaffirms its dedication to providing consumers with the highest quality, antibiotic-free chicken products, devoid of chemical, artificial additives, preservatives, or added hormones.

This commitment underscores Bairaha’s long-standing philosophy of delivering safe and superior nutrition, setting a benchmark for purity and food safety in the industry.

At Bairaha, the pursuit of wholesome goodness is at the core of every operation. The company employs advanced, non-chemical processing methods that prioritise consumer’s well-being and environmental responsibility.

Unlike conventional practices of the industry relying on harsh chemicals like chlorine for washing/rinsing the bird in processing while, Bairaha utilises Peracetic Acid (PAA), a highly effective and safer alternative for antimicrobial efficacy.

PAA boasts a superior ability to combat a broad spectrum of microorganisms, even at lower concentrations and in the presence of organic matter where chlorine’s effectiveness diminishes.

Crucially, PAA breaks down into non-toxic residues such as acetic acid, water, and oxygen, ensuring no harmful chlorinated by-products, like trihalomethanes are formed, making it inherently safer for food contact.

Furthermore, PAA is considerably less corrosive to equipment at working concentrations, minimising infrastructure wear and tear, and more importantly, it poses a significantly lower risk for worker exposure, as it does not release toxic gas under normal use, unlike chlorine.

These practices are not only aligned with Bairaha’s internal standards but are also widely recognised and accepted by international regulatory bodies, including the USDA and FDA, and by export markets that restrict chlorine use, such as the European Union.

By adhering to these rigorous standards and in being certified with ISO 22000, HACCP, and GMP, Bairaha Farms PLC continues to empower Sri Lankan households with chemical-free chicken with better taste and flavour reinforcing its position as a leader committed to health and purity.

The Cabinet of Ministers on Monday approved compensation for employees who lost their jobs due to the closure of weaving mills in Thulhiriya and Pugoda.

The decision covers 15 employees of Karbul Lanka Ltd., Thulhiriya, who had previously not received compensation, as well as 169 former employees of the Thulhiriya and Pugoda weaving mills. These individuals had recently submitted appeals seeking due compensation.

Measures have been taken to ensure that all affected employees receive compensation along with other statutory allowances, rectifying the prejudices faced due to the closure of Karbul Lanka Ltd.

This latest approval follows an earlier Cabinet decision on 26 May, under which 1,656 employees of the Thulhiriya and Pugoda weaving mills, which were part of the National Weaving Corporation and lost employment back in 1978, were granted compensation.

The new round of approvals ensures that employees who missed the initial compensation application window will also be reimbursed.

The Central Bank of Sri Lanka (CBSL) yesterday delivering the sixth and final Monetary Policy Review for 2025 announced that rates would remain unchanged at 7.75%.

The decision to hold policy rates steady was made at a Monetary Board review on Tuesday, after assessing both domestic and global developments.

The Board is of the view that the current monetary policy stance will help steer inflation towards the target of 5% in the period ahead, while supporting growth.

‘The decision is based on the progress seen so far this year and price stability and potential growth,’ Dr. Weerasinghe said during the post-Monetary Policy Review meeting media briefing yesterday.

He said stability is the most important foundation for sustainable economic growth. ‘We expect the economy to grow by 4.5% this year,’ he added.

He also said that further easing of rates is still possible as the country has now built sufficient buffers – monetary, reserves, and fiscal – if there are any global headwinds.

The CBSL Governor also explained that there is a lot of global uncertainty. However, Sri Lanka would not have a lot of impact as the country is not exposed to raise funds from the market. However, he said if the world economy slows down, it will have a negative impact on the external sector.

‘Thus, building buffers are important to make any adjustments if need arises. Before the economic crisis, we did not have any buffers and today, we are in a better position,’ he added.

As per the CBSL, headline inflation based on the Colombo Consumer Price Index (CCPI) continued to accelerate in October for the third consecutive month. Inflation is expected to rise more gradually than projected earlier and move towards the target by the second half of 2026. Core inflation is also expected to accelerate at a modest pace, as demand in the economy gradually strengthens. Medium-term inflation expectations remain well anchored around the inflation target.

‘Inflation is expected to rise more gradually than previously forecast but should reach the CBSL’s 5% target by the second half of 2026,’ Dr. Weerasinghe added.

Leading economic indicators suggest a continuation of the growth momentum.

Credit to the private sector has recorded a notable and broad-based expansion thus far in 2025, supported by the low-interest-rate environment.

Dr. Weerasinghe said the CBSL is monitoring the credit to GDP by the private sector. ‘Although it has expanded, it is still below average compared to 2016-2018 level. So, overall, we do not see any unnecessary growth or an economic overheating,’ he added.

The Governor also said the fiscal performance has been much better historically, noting that fiscal stability is always a positive factor for overall economic stabilisation.

‘This also reflects a recovery in economic activity as well as the realisation of pent-up demand for vehicle imports. This credit momentum is likely to continue in the period ahead,’ the CBSL said.

Imports have risen in recent months, contributing to a widening trade deficit. However, strong inflows from tourism and workers’ remittances have cushioned the impact on the external current account.

Gross official reserves were maintained above $ 6 billion thus far in 2025, supported by net foreign exchange purchases by the CBSL.

The CBSL expects additional inflows in December 2025, including receipts from the multilateral organisations.

The recent depreciation pressure on the rupee has subsided with the improvement in foreign exchange liquidity.

‘The CBSL will continue to monitor and assess incoming data on evolving domestic and global economic conditions and emerging risks. The Board remains prepared to implement appropriate policy measures to ensure that inflation stabilises around the target, while supporting the economy to reach its potential,’ it added.

Ceylinco Life’s Sports Festival 2025 brought a burst of colour and competitive energy to the Torrington Grounds recently, as around 1,200 participants from all major business groups, the Head Office and the senior management turned out for the Company’s biggest sporting day of the year.

This year’s festival not only reflected Ceylinco Life’s commitment to employee health and well-being but also brought together colleagues from across generations, with participants aged 20 to 65, highlighting a culture of inclusivity and unity, the Company said.

A full slate of track and field events, from the 100m dash to the 1,500m, along with long jump, high jump, shot put and discus, kept the grounds buzzing, with the walking race and a spirited tug of war adding extra edge to the program.

This year’s festival built on group events held in September, which featured cricket, badminton, netball and volleyball matches that set the tone for the final showdown. When the points were tallied, the PK Group clinched overall honours, while the NS/KS Group secured the Runner-up title.

Individual performances also stood out. W. D. V. Kavinda of the ST Group was crowned Best Male Athlete, and A. D. Sagarika of the TV Group took the title of Best Female Athlete, rounding off a day that celebrated teamwork, talent and sporting passion across the Company.

The event highlighted Ceylinco Life’s commitment to collaboration, excellence, and employee well-being, bringing together staff from all levels to strengthen the Company’s shared vision.

Ceylinco Life Sports Club President Chamath Alwis said the Sports Festival continues to inspire a positive culture and reinforces Ceylinco Life’s dedication to supporting its employees and agency force.

‘At Ceylinco Life, we believe that promoting health and well-being among our employees is fundamental to our mission. The Sports Festival is a wonderful opportunity for us to come together, celebrate achievements, and reinforce our commitment to excellence and employee engagement,’ he added.