Category: Daily Financial Times

Taj Samudra unveiled Navratna in its new avatar last week, following a comprehensive and elegant renovation. The refreshed design blends contemporary sophistication with timeless artistic elements, creating a warm and vibrant atmosphere that elevates the dining experience.

The new menu pays homage to India’s rich culinary heritage while introducing refined interpretations of classic dishes, crafted with the finest ingredients and authentic regional flavours.

The reopening was marked with a special ceremony, celebrating the return of one of the city’s most cherished Indian dining destinations-now reimagined, revitalised, and ready to welcome guests to an exceptional gastronomic journey.

The Colombo stock market yesterday closed on the up for the second straight session with both indices ending in green.

The ASPI gained 0.11% to close up 24.32 points to 22,844.23 and the active S and P SL20 was up 0.20% or 12.55 points to 6,311.30.

Market turnover was over Rs. 3.4 million on nearly 157.31 million shares traded. Foreign investors were net sellers with a net outflow of Rs. 124.56 million.

First Capital Research said the Colombo Bourse carried forward Tuesday’s positive momentum into the first half of yesterday’s session amidst a bit of volatility, yet managed to close the day in green with retail and HNW investors displaying moderate sentiment following the Monetary Policy Review, where policy rates were maintained.

Notably, investors showed heightened interest in counters within the Hotel sector throughout the session. The key market movers for the day were HNB, DOCK, DIMO, AEL, and PKME.

Market turnover was 38% below the monthly average of Rs. 5.6 billion.

The Capital Goods sector accounted for 27% of total turnover, followed by the Materials and Banking sectors, which collectively contributed 29%.

Tourism is one of Sri Lanka’s most inclusive sectors, creating opportunities for youth and women across the country. The Sri Lanka Institute of Tourism and Hotel Management (SLITHM), in partnership with the Asian Development Bank (ADB), concluded a series of youth tourism awareness programs for young people aged 18-28 in Jaffna, Kilinochchi, and Mannar.

The closing ceremony was held on 13 November at NorthGate Hotel, Jaffna, with the Governor of the Northern Province, Nagalingam Vethanayahan, attending the event as the Chief Guest.

The program combined classroom learning with hands-on training across key hotel departments, giving participants practical exposure to real career opportunities in the tourism sector. It also included sessions on personal development, sustainability, and employability skills such as CV writing and interview preparation.

Launched in line with the Government’s priority to promote tourism in the Northern and Eastern Provinces, the initiative aimed to raise awareness among young people about opportunities in tourism and hospitality, strengthen their employability, and support the long-term development of the Northern Province as a competitive tourism destination.

Over 220 applications were received, from which 80 participants were selected for a two-day practical training experience conducted at Jetwing Jaffna, FOX Resorts Jaffna, and Palmyrah House Mannar. Participants gained first-hand experience in hotel operations across the front office, housekeeping, food and beverage, and kitchen departments.

A significant highlight of the initiative was the strong participation and enthusiasm of young women across the three districts. Female hospitality professionals from the partner hotels engaged directly with the participants, sharing their career journeys and addressing cultural misconceptions surrounding hospitality careers. Many young women noted that seeing women who have succeeded in the field helped them view tourism as a respected, skilled, and empowering career path.

The 80 participants who completed the program, along with their parents, were invited to the closing event, where certificates of participation were distributed.

To coincide with Lonely Planet’s recent recognition of Jaffna as one of the Best Cities to Visit in 2026, a special panel discussion titled ‘Rediscovering Northern Sri Lanka: Building a New Tourism Identity’ was also organised.

The panel featured SLITHM Chairman Dheera Hettiarachchi; ADB Country Director Takafumi Kadono; Jetwing Hotels Managing Director Dmitri Cooray; and Co-founder of Nandhi Collective Yashodha Sivakumaran. The discussion was moderated by ADB TA Program Coordinator and Consultant Dewni Aluthwatte.

The thought-provoking discussion focused on how the recent international spotlight on Jaffna could be leveraged to promote tourism and establish a distinctive Northern tourism brand. All panellists agreed that the region’s culture, traditions, cuisine, and laid-back lifestyle should be key elements of its identity.

Panelist Sivakumaran noted that the North’s underdevelopment and untouched, raw environment could itself be a unique selling proposition. Responding to a question on youth awareness and reluctance to join the industry, Hettiarachchi shared SLITHM’s plans to expand tourism education and training in the North, while Cooray highlighted Jetwing’s experiences as one of the first hotel groups to invest in the region.

When asked about ADB’s role in supporting long-term tourism development, Kadono emphasised that tourism will increasingly be integrated into ADB’s future mainstream funding portfolio, as the sector cuts across multiple areas of development.

All panellists underscored that sustainable development in the North must be a collaborative process involving both the public and private sectors. One key suggestion that emerged was to establish a special chamber in the North to guide future tourism strategy.

The event also featured an overview of the youth awareness program by ADB Senior Project Officer (Urban Development) Panchali Ellapola followed by a short video presentation highlighting activities from the three districts. Remarks were then delivered by the SLITHM Chairman, the ADB Country Director, the CEO of FOX Resorts, and the Governor of the Northern Province, Nagalingam Vethanayahan, who commended the initiative for empowering young people and opening new avenues for economic participation in the region.

The event concluded with a vote of thanks by ADB Program Manager and Consultant, Srilal Miththapala. A fellowship followed, with the ADB Country Director engaging warmly with the students and their parents.

The program forms part of ADB’s ongoing technical assistance for Sri Lanka’s tourism sector under TA 9881: Supporting Tourism Resilience, which focuses on strengthening workforce skills, improving service quality among homestay operators, promoting untapped tourism segments such as marine tourism, and supporting regional tourism growth through partnerships with Government and private sector stakeholders.

Sysco LABS delivered an exceptional performance at the Mercantile Tennis Tournament 2025, securing 5th place out of 35 companies-a significant climb from last year’s 24th-place ranking and the highest among IT sector participants. Key victories included Damsarani Vitharana winning the Women’s Singles Green Ball Championship, Kishokanth Kumar winning the Men’s Singles Green Ball Championship, Chanuk Algama finishing Runner-up in the Men’s 35+ Singles, and Sandali Thiserra reaching the Women’s Singles Green Ball Semi-finals. Here the Sysco LABS Tennis Team who participated in the Mercantile Tournament 2025.

Opposition Leader Sajith Premadasa yesterday unveiled a comprehensive national roadmap to transform Sri Lanka into a $ 25-30 billion digital economy by 2030, stressing that the country must urgently modernise its digital infrastructure, strengthen governance, and create high-value employment for its youth.

Speaking in Parliament, Sajith Premadasa said Sri Lanka has the potential to become a regional technology hub if it invests decisively in telecommunications upgrades, data centres, cloud infrastructure, artificial intelligence education and large-scale IT talent development.

He emphasised the need to expand 5G nationwide, incentivise fibre connectivity, partner with global cloud providers and establish tech investment zones across all 25 districts.

He called for a fully digitalised public service, including a national digital identity, digital signatures, inter-agency data platforms and 100% online access to government services such as licences, land registry work, court filings and permits.

Digital payment adoption, interoperable QR systems and fintech innovation were highlighted as essential to building a cashless economy and reducing corruption.

Sajith Premadasa also proposed establishing a national start-up fund, promoting AI, fintech, agri-tech and health-tech ventures, offering tech visas to global experts, and boosting IT-BPM exports from $ 1.8 billion to $ 10 billion by 2030.

He underscored the importance of digitalising traditional sectors like agriculture, tourism and fisheries, improving cybersecurity, updating outdated laws and expanding digital literacy nationwide.

Sajith Premadasa said the SJB stands ready to lead Sri Lanka into a modern digital era, adding, ‘It’s time to walk the talk and make our digital dream a reality.

As someone who was on the Nugegoda stage with his wife ten years ago on 18 February 2015, and as the guy who read out Mahinda Rajapaksa’s message to the nation from the Nugegoda platform, and indeed as the person who initiated and convened the process of Opposition political discussion after Mahinda’s 2015 defeat that resulted in the decision to hold the Nugegoda rally (a decision taken, as chronicled by Dr. Nalaka Godahewa, over a working dinner at the house of a well-educated, exceedingly smart and highly successful young businessman), I think I am qualified to express an informed opinion about the success and impact of the 21 November event 10 years later, which I didn’t attend but watched keenly on TV and social media.

Adjusted for dreadful weather and obstructionism by the authorities, I have little hesitation in saying that the 21 November 2025 Nugegoda event was every bit as successful as the 18 February event at the same venue a decade before. I’d go further: last week’s Nugegoda manifestation is almost certain to be politically more successful and therefore, historically more significant.

Namal’s breakout moment

The weather was freakish. After the rain, at nightfall the lightning kept flashing for hours. For those even vaguely familiar with theatre and literature from the Greeks to Shakespeare and Emily Bronte, or simply to superhero flicks on TV, lightning-filled stormy weather is symbolic, portentous.

On 21 November 2025 at Nugegoda, the weather was both backdrop and symbol. The backdrop was a portal for the emergence of a new player, probably a game-changer: the eruption of Namal Rajapaksa into the political game as a second, ‘shadow’ or parallel Opposition leader and contender for the Presidency in 2029. He may have to settle for less, such as the PM’s slot or even Opposition leadership, but that was just not the vibe at Nugegoda.

Many things dictate the outcome of an election, such as what’s happening at that time, the ‘swing vote’ etc. Elections are complex, but one thing remains simple, basic. The essence of an election is that it is a popularity contest. To win, you have to have the widest popular appeal; the greatest hold on the public imagination.

Nugegoda showcased Namal Rajapaksa’s indisputable chemistry with the people. He was given a rock star’s welcome when he was caught in the crowd as he emerged from the roof of his vehicle, vaulting nimbly onto the stage. He had smartly twinned the traditional white long-sleeved top with denims and shoes: a hybrid ‘look’ denoting both continuity and generational change. Perhaps most telling was the spontaneous surge of young people-mainly young men and teenagers-onto the platform together with Namal, packing themselves into the frame of whatever footage and photographs that were being taken. The Sinhala rap songs at the close and in post-event videos that streamed out, announced a ‘People’s Prince’.

The weather prevented Namal from making the full speech he would’ve planned to. He had to select, and what you heard was his core message.

Firstly, Namal Rajapaksa stepped through the Nugegoda ‘portal’ as a leader; a leader of a wing of the Opposition, but a leader aspiring to the highest national office and destiny. He tossed his hat in the ring.

Secondly, he was explicit that he saw himself as the counter, the active alternative, even the real alternative to President Anura Kumara Dissanayake.

Thirdly, he challenged Anura frontally. Sounding like a young Muhammad Ali, he announced that he was coming for AKD and his rule of broken promises through a pro-people struggle, a ‘janathavaadee aragalaya’.

When he stayed behind at Temple Trees until his father Mahinda and everyone else had finally been evacuated after a Molotov cocktail throwing inner-city mob had besieged and broken in with terrifying, disgraceful intent to lynch war-winning ex-President MR; and when he decided to take the plunge and enter the 2024 Presidential race after Dhammika Perera bailed-out at the last moment, Namal has shown himself resolute, with real courage to take real risks.

Last week’s Nugegoda gathering showed he had the courage to risk taking the political initiative.

A leader is a fighter. Someone who can and will lead his/her collective, his/her side in battle defending the cause or country against the enemy. Namal Rajapaksa is a fearless fighter, as was his father Mahinda –and Sajith’s father Ranasinghe Premadasa. If anyone was looking for who had the personality-the combination of daring and appeal, guts and smarts-to take on President Anura Kumara Dissanayake and his JVP-NPP machine, the rainy November day in Nugegoda revealed it was Namal Rajapaksa.

In a salute to the young Marx whose doctoral thesis was on the subject, the philosopher Louis Althusser returned in his last days to the Greek (and Roman) ‘Atomists’. Following the Atomists’ stunningly prophetic scientific discernment that the universe consisted of atoms falling in a ceaseless rain, but which would suddenly, randomly swerve, thereby making for change, creation-this swerve, permitting rupture and leaps, distinguished it from the ancient Indian ‘Atomists’- Althusser concluded that the crucial thing in politics was to be able to make the atoms swerve or position oneself when and where they would/did.

Ranil and Anura showed in 2022 and 2023-2024 respectively that they were there, when and where the atoms swerved. Sajith could’ve been but wasn’t. At Nugegoda, and with Nugegoda, Namal Rajapaksa showed he could make the political atoms swerve from their usual ceaseless rain.

With ‘Genocide Day’ resolutions and Tiger flags in Western cities, and a President who is dismantling our hard-won defences, retrenching the military from our border provinces, establishing a so-called Independent Public Prosecutors’ Office, making vital economic sectors dependent on Tamil Nadu and granting strategic areas to those who adhere deeply to the Ramayana and regard Lanka as the island of the ‘demon’ Ravana, we shall once again need a fearless young fighter from the South, this time the son of a great patriotic leader, to defend us.

However, knowing what the JVP cruelly did to Vijaya Kumaratunga in February 1988 for far smaller stakes-the Chief Ministership of the Western Provincial Council-Namal must know he’s taking on a ruthless, conscienceless party in power, ‘hard-wired’ for untrammelled political evil. Of course, the blowback from that atrocity was such that 21 months after the much-loved Vijaya’s murder, the JVP was almost exterminated.

SLPP’s Edirimanne: strong young voice at Nugegoda

‘People’s Prince’ issues challenge

Nugegoda backstory and MR

The 2015 Mahinda comeback campaign failed because it was not completely independent of the SLFP. Intended to make Mahinda the PM at the August 2015 General Election, it failed because a Mayor (Dehiwala-Mt. Lavinia, I think) in the Mahinda camp declared at a public meeting that when Mahinda won, the masses would pressurise President Sirisena-‘even descending through the roof’-to hand power over to MR. I was a speaker on that stage and recall Mahinda’s expression bearing the same shock and dismay I felt inside. President Sirisena reacted by addressing the nation and declaring he would not appoint Mahinda as PM, whatever the number of votes he polled. That ensured Mahinda’s defeat.

The second defeat of the Mahinda comeback that originated with Nugegoda 2015, was the ’52-days’ experiment in late-2018. I had phoned President Sirisena and Prime Minister Mahinda Rajapaksa from Moscow, and warned them not to petition the Supreme Court because the 19th Amendment was clear-cut. I suggested a non-binding referendum instead, which if won, would give national legitimacy to the induction of MR as PM and the holding of a snap General Election, and be taken cognisance of by the SC. Unfortunately, certain Opposition politicians including one of MR’s siblings were pressing for the Supreme Court option.

Mahinda’s siblings failed to mobilise parliamentary numbers or the masses in support of him as the newly reappointed PM. There was no gigantic public gathering such as the 2017 Galle Face May Day. Hostile to a Mahinda-Maithripala rapprochement, MR’s two most influential siblings left him dangling in the wind during the ’52 days’-with only his son Namal and old comrade Vasudeva Nanayakkara loyally doing their best.

The third defeat of the Mahinda comeback launched at the Nugegoda rally 10 years ago, was after Gotabaya Rajapaksa became President and passed a version of the 20th Amendment that removed almost all power from the PM – ‘Mahinda Aiya’-and re-centralised it in the Presidency. This made possible the fertiliser lunacy, triggering the peasantry’s anti-GR surge and lighting the Aragalaya fuse.

These in-house betrayals may have broken Mahinda’s heart and health, but now, with the reawakening at Nugegoda a decade later, he can be glad. Namal is not dependent on anyone as a proxy as MR was, due to the imposition of an absolute (not merely non-consecutive) two-term limit. Mahinda’s comeback never really came to fruition after Nugegoda 2015, not even in 2019-2020, but Namal’s Nugegoda 2025 moment is a new beginning which provides continuity.

In Parliament, Sajith sounded the alert about a ‘Police State’. An LSE product, he should surely know that history provides no example of defeating such an autocratic project other than through the broadest bloc of the most diverse democratic forces. The dictatorial danger is never overcome by a single party. If Sajith believes there is an AKD-JVP effort to create a Police State-and I think he’s right-then he should have been at Nugegoda, leading the democratic Resistance

Sajith’s blunder: Bifurcated, bipolar Opposition

Sajith’s absence and abdication on 21 November 2025 produced two results:

(I) The mainstream Opposition is now split; bifurcated.

(II) The Opposition is now also bi-polar, with Namal emerging as the second leadership ‘pole’ and co-leader or parallel leader of the country’s Opposition space; the alternative within the alternative.

Had Sajith attended the Nugegoda event, as Leader of the Opposition, leader of the biggest Opposition party, an excellent orator, and the largest shareholder of the crowd since Colombo is his base, he would have had a preeminent status and role. He passed up the chance. The strategic losses outweigh the ‘moral’ gains of abstinence. Absent leadership is a political oxymoron.

Sajith is the finest speaker, economic mind and overall policy expert in Parliament, bar none. Moreover, as proved by the ‘Sakvala’ and ‘Husma’ programs, he is more caring and practically helpful to the underprivileged and needy than any other Sri Lankan politician today.

Ours is a Presidential system, not the Westminster model. Bill Clinton, Barack Obama, Donald Trump and (at state and mayoral levels) AOC and Zohran Mamdani didn’t win because of speeches in the legislature. They won because of their speeches, conversations, debates in public and media (talk-shows, podcasts) spaces-their performance in the agora, as political philosopher Hannah Arendt reminds us. Sajith’s father Ranasinghe Premadasa used to drop by poor people’s homes in the inner-city and in remote villages and chat to them by name. At the John de Silva Theatre, he once burst into an impossibly fast song from the Tower Hall era (later turned by Bhathiya and Santhush into the first Sinhala rap-song).

One of Sajith’s favorite stanzas from the Buddha states it is not by birth but by one’s actions that one achieves a certain ranking, status. In 1973-1977 JR Jayewardene and

R. Premadasa led the Opposition from the front, both in Parliament and on the streets.

In his last May Day speech in 1992, President Premadasa said that if SWRD Bandaranaike had been alive he’d have been on the UNP platform on that May Day because he, Premadasa, had transformed the UNP into a party that SWRD would not have felt the need to leave. Premadasa felt that the old UNP was more at fault than SWRD had been at the time of the split, and strove for an ensemble of ideas which would have pre-empted such a split and would heal the historic schism in the democratic center that had occurred in 1951.

Yet, inexplicably, the SJB was not founded on the basis of a proven success but an abiding failure; not on the foundation of Ranasinghe Premadasa’s successful political, social and developmental doctrine and model, but on the electorally doomed Ranil Wickremesinghe UNP doctrine and model of 2001-3 and 2015-2019. The foundational flaw and folly have never been rectified or transcended.

Instead of seizing the chance to address a nationalist, center-leftist audience from Nugegoda on 21 November, Sajith and the SJB remain self-isolated in the ‘generic green’ ghetto of the 30+% range.

One publicly stated excuse for the SJB’s absence is that ‘this is not yet the correct time for the Opposition to take the path of agitation and propaganda; to take the anti-Government struggle out of Parliament into the public spaces. It is a time to seek constructive solutions’. In sharp contradistinction, R. Premadasa as Opposition MP argued brilliantly in the early 1970s that an Opposition vastly outnumbered by a Government with a two-thirds majority in Parliament, cannot be an effective counterweight and competitor on so lopsided a playing field. He advocated transforming the social character of the UNP while ventilating mounting public grievances in a campaign of mass meetings, i.e., outside Parliament. He urged the UNP to become a mass movement. UNP leader Dudley Senanayake disagreed.

For R. Premadasa, founder of the Sucharitha Movement at age16, and a member of AE Goonesinghe’s Labour Party, purely parliamentary politics was a politics of passivity, and never an option. He almost left the UNP by founding the populist Puravesi Peramuna/Citizens Front, enlisting a diverse group (ex-ambassador RSS Gunawardena, Gamini Fonseka, Sirisena Cooray, Ven. Meetiyagoda Gunaratne thero, teenager Imthiaz Bakeer Markar) and launching a series of packed open-air gatherings including at Colombo’s Hyde Park. With Dudley Senanayake’s death R. Premadasa returned fully into the UNP fold at JR Jayewardene’s invitation, deactivating the Citizens’ Front after agreeing to reconfigure and reorient the UNP onto his recommended lines. The re-engineered UNP initiated a series of Gandhian ‘Satyagrahas’ from 1973.

SJB spokespersons argue on TV that ‘this is not the time’ to take on the Government frontally because ‘we have a few more things to get done by this Government on the economic front, which they would oppose if in Opposition’. This economic excuse, originating with Dr Harsha de Silva, is exactly what the SJB trotted out when Ranil was Prime Minister and President-enabling Anura and the JVP-NPP to outflank the SJB and win. Logically it also damages the SJB’s claim to be the alternative to Anura and the JVP-NPP.

Harsha’s ‘continuity of congruent economic ideology’ argument is the exact opposite of the history of the UNP in Opposition in 1973-1977. The UNP escalated the confrontation with the Sirimavo Government after the Left had been evicted from the ruling coalition and substituted by Felix Dias Bandaranaike who represented the SLFP’s economic right-wing. The UNP and LSSP jointly dubbed him ‘Satan’! JR and Premadasa never confused politics, especially Opposition politics, with economic ideology.

In Parliament, Sajith sounded the alert about a ‘Police State’. An LSE product, he should surely know that history provides no example of defeating such an autocratic project other than through the broadest bloc of the most diverse democratic forces. The dictatorial danger is never overcome by a single party. If Sajith believes there is an AKD-JVP effort to create a Police State-and I think he’s right-then he should have been at Nugegoda, leading the democratic Resistance.

The most electable SJB figure nationally, if Sajith seriously still aspires to the Presidency instead of the more accessible Prime Ministership, he must emulate his dynamic populist father, starting now.

President Anura Kumara Dissanayake will attend the Sri Lanka Economic and Investment Summit 2025 on 2 December, during which he will join The Ceylon Chamber of Commerce Vice Chairperson Bingumal Thewarathanthri for an on-stage conversation aligned with the Summit’s theme – ‘Gateway to Growth – Asia’s Emerging Opportunity.’

The conversation is expected to give participants a clearer sense of how the Government views the next phase of economic rebuilding, the pressures shaping policy choices, and the path the country hopes to take to restore confidence.

It offers businesses and investors the opportunity to hear the President explain the thinking behind policy choices at a moment when investors are looking for clear signals and predictability.

Conceptualised as a Fireside Chat, dialogues such as this play an important role because Sri Lanka’s recovery depends on rebuilding trust.

The dialogue aims to offer a window into how the country intends to move forward on investment, trade, and overall economic revival. Bringing Government leaders, international delegates, and the private sector into the same room helps close the gap between policy intention and what businesses experience on the ground.

The Sri Lanka Economic and Investment Summit 2025, organised by The Ceylon Chamber of Commerce, will take place on 2-3 December at Shangri-La Hotel Colombo. This year’s edition has already drawn more than 850 participants and over 100 international delegates, a turnout that reflects growing interest in Sri Lanka’s direction.

The 2026 Budget represents not just a financial roadmap, but a moral and strategic moment; one where public ambition for sustainable growth, environmental stewardship, and inclusive development must translate into real, bankable projects. While the Budget speech by President/Finance Minister Honourable Anura Kumara Dissanayake signals many promising directions (Full Budget Speech 2026), the challenge now is effective delivery. For investor firms this brings both an opportunity and a responsibility: to align vision with national priorities, and to mobilise capital, expertise and partnerships to turn policy into impact.

1. The big picture: What the 2026 Budget promises

The 2026 Budget is framed around three interlocking themes: economic recovery, investment confidence, and green transformation. In his speech, President Dissanayake emphasised replacing ‘cronyism with partnership,’ and embedding predictability and rule-based incentives to attract quality investment. Key structural reform measures include:

1. Amendments to the Strategic Development Projects Act and the Colombo Port City Commission Act, aimed at streamlining foreign direct investment (FDI) processes and making incentive systems more transparent.

2. A PPP (Public-Private Partnership) Act, with a draft bill submitted for public consultation and parliamentary approval.

3. A new Investment Protection Act, scheduled for passage in early 2026, to protect foreign and domestic investors.

4. Significant allocations to SMEs, rural credit, and agricultural value chains: loans of up to LKR 50 million for SMEs, concessional loans for agriculture via a New Comprehensive Rural Credit Scheme (NCRCS), and a dedicated ‘Sustainable Farmers’ Loan Fund’ (LKR 800 million) to support climate-smart farming.

5. A bold irrigation investment package, with Rs. 91,700 million allocated to lift up irrigation infrastructure and water systems.

6. A push for green energy, tied to new economic opportunities – including data centres, green hydrogen, and transport electrification.

These commitments align strongly with Sri Lanka’s broader climate goals: under its NDC 3.0 (2026-2035), the government places a major emphasis on mitigation and adaptation in sectors like energy and agriculture, with 75% of its emissions reduction target coming from the power sector and 7.5% from agriculture (UNFCCC).

2. What’s right: The strengths and strategic opportunities

A. Focus on core sectors: Agriculture and Irrigation

The emphasis on irrigation with nearly Rs. 91,700 million is a strong signal that the government regards water infrastructure not just as a social good, but as a core economic lever (Full Budget Speech 2026, Irrigation section). These investments are critical for stabilising farm productivity, enabling climate-resilient agriculture, and increasing rural incomes. By linking these irrigation investments with agricultural credit and value-chain financing, the Budget recognises that infrastructure alone is not enough: farmers need real support to translate water into value.

President Dissanayake has also highlighted the importance of transforming the livestock sector – especially dairy – into a commercial industry rather than subsistence farming. This shift could reduce Sri Lanka’s import dependence, support rural livelihoods, and build a value-add agricultural

sector.

B. Green energy with an economic twist

Rather than viewing green energy purely in environmental terms, the Budget ties renewables to industrial growth, export potential, and data-driven demand. This is smart because it aligns climate goals with economic (and revenue) goals.

The reform measures – PPP Act, Investment Protection Act – also send a signal of seriousness: investors need legal certainty, protection, and predictable deal structures.

Beyond policy, international development partners are already stepping in. For example, the World Bank Group has committed $150 million to support Sri Lanka’s energy transition, specifically to help scale solar and wind, modernise the grid, and de-risk payments to the Ceylon Electricity Board (CEB) by offering guarantees (World Bank).

C. Building competitiveness: SME and farmer financing

By allocating funds to SMEs and smallholder farmers, the government is showing that growth should not just be driven by mega-projects – but by the small businesses and farmers who power Sri Lanka’s rural economy.

The Sustainable Farmers’ Loan Fund (Rs. 800 million) is particularly noteworthy: its purpose is to help farmers adopt climate-resilient practices, invest in processing or storage, and scale sustainable farming systems.

Furthermore, the World Bank’s Rurban project (Rural-Urban Development and Climate Resilience) is aligned with this strategy. The Bank is providing $ 100 million to support smallholder farmers, improve irrigation on 71,000 hectares, promote modern climate-smart agriculture, and strengthen agri-food value chains.

D. Regulatory reforms to unlock investment

The steps to improve the investment climate are real and potentially transformative: legal instruments, PPP frameworks, and value-chain-focused zones for SMEs.

By building ‘auxiliary zones’ linked to main investment zones, the government is creating space for SMEs to integrate into industrial value chains and benefit from spillover effects.

3. The risks and gaps: What the Budget overlooks or undermines

Despite many forward-looking commitments, the 2026 Budget is not without serious challenges. These gaps, if unaddressed, could undermine its transformative potential.

A. Energy sector reform risk

While the Budget promises a green energy push, the real resources for key enablers – such as energy storage or grid modernisation – remain limited. The World-Bank program helps, but the scale of ambition (e.g., green hydrogen, transport electrification) requires more than incremental investment.

There is also a lingering risk around the Ceylon Electricity Board: unless it is reformed meaningfully, inefficiencies, losses, and financial stress could continue to be a bottleneck for new private investment.

B. Implementation risk and institutional capacity

Allocations in the Budget are promising, but delivery will be difficult. The PPP Act, Investment Protection Act, and FDI reforms all require strong institutions, transparent procurement, and long-term political commitment to be effective. Without building the relevant institutional capacity, many of these reforms might remain on paper.

Sri Lanka’s track record with large PPP projects is mixed. Poor contract design, opaque bidding, and misaligned incentives could lead to cost overruns or under-delivering.

C. Financing gap and long-term capital

Public funds will not be sufficient. To deliver on green energy, irrigation modernisation, and climate-smart agriculture, Sri Lanka needs billions of dollars in private and blended finance. The Budget’s signals are good, but they must be translated into bankable projects, de-risked structures, and a credible project pipeline to attract DFIs, impact investors, and corporates.

At the same time, lending to smallholder farmers carries real risks: default, climate shocks, price volatility. Without aggregation, insurance, and off-take mechanisms, credit may not translate into real, scalable transformation.

D. Accountability and monitoring shortcomings

The Budget speech is rich in aspiration, but weak on concrete monitoring mechanisms: What are the key performance indicators (KPIs)? How will irrigation funds be disbursed and tracked? Over what timeframe will PPPs and green projects be evaluated? Without a publicly accessible dashboard, progress will be difficult to measure, and trust will suffer.

There is also a risk of fiscal slippage: macroeconomic assumptions may not hold, especially given external risks (currency, debt, interest rates). Without strict fiscal discipline, the ambitions in the Budget could be undermined.

4. What needs to happen: From promise to reality

To maximise the potential of the 2026 Budget, several concrete actions are required. This is where NWG can play a catalytic role.

A. Develop bankable project pipelines

NWG should lead in structuring project-ready pipelines in high-impact areas:

1. Agrivoltaic + Drying Hubs: Combine solar power, crop-drying and processing, and farm clustering – financed via PPPs or blended finance.

2. Irrigation Electrification: Modernise irrigation systems using solar-powered pumps, smart water management, and drip infrastructure.

3. Green Hydrogen Pilot: Leverage off-peak renewables to produce green hydrogen (or green ammonia), exploring off-take via fertilisers, industrial use, or export.

These projects should come with full feasibility studies, financial models, ESG frameworks, community plans, and risk management structures.

B. Forge blended finance partnerships

Investment Firms should proactively engage with multilateral development banks, DFIs, impact funds, and private equity to mobilise blended capital:

Use concessional capital or grant funding to de-risk early-stage infrastructure.

Provide credit enhancements or guarantees for SME and farmer financing.

Build an ‘investment platform’ for green infrastructure and agritech – standardised documents, co-investment vehicles, ESG frameworks.

C. Policy advocacy and technical support

Investment firms must work with relevant ministries – Finance, Power, Irrigation, Agriculture – to operationalise Budget reforms:

Co-draft PPP tender documents, PPA (Power Purchase Agreement) templates, and model investor contracts.

Help establish a national monitoring platform / dashboard to track disbursements, project milestones, and social/environmental outcomes.

Provide technical support to improve regulatory frameworks (e.g., grid access, tariffs, permitting) to accelerate project deployment.

D. Strengthen farmer aggregation and off-take mechanisms

To reduce credit risk and build scale:

Partner with farmer cooperatives, agribusinesses, and extension agencies to aggregate supply – cluster farmers into value chains.

Secure off-take agreements with processors, exporters, or local industries to guarantee demand for farmers’ output.

Introduce crop-insurance or climate-risk hedging products, to protect farmers (and financiers) from shocks.

E. Promote transparency and accountability

To build trust and ensure impact, NWG should advocate for:

A public project monitoring dashboard that tracks allocations, disbursements, and outcomes.

Independent third-party verification (DFIs, civil society) of project progress and social/environmental impact.

Regular stakeholder forums (government, private sector, communities) for review, feedback, and course correction.

5. How others can join hands with investment firms

To unlock the full potential of the 2026 Budget, collaboration is vital. Here’s how different actors can partner:

Development Finance Institutions (DFIs): Co-finance with NWG to provide concessional debt, guarantees, or grants for high-impact green-agriprojects.

Impact Investors / PE Funds: Invest alongside NWG in agrivoltaics, green hydrogen, SME value chain firms – with risk mitigated via blended vehicles.

EPC and Technology Providers: Deliver design, build, operation for renewable + storage + irrigation systems in NWG-led projects.

Agribusinesses / Exporters: Enter off-take contracts with NWG-aggregated farmer clusters; invest in processing/value-add.

NGOs and Civil Society: Support farmer training, social impact, and community engagement in NWG projects.

Government / Regulators: Partner with NWG on policy implementation, PPP frameworks, and project monitoring.

6. Risks we must watch – and how to mitigate them

For the investment firms and its partners, the major risks include:

1. Political/Policy risk: Promised reforms may be delayed or diluted.

Mitigation: Negotiate MOUs, anchor government commitment, do phased deals.

2. Execution risk: Infrastructure projects may overrun.

Mitigation: Use experienced EPC partners, rigorous procurement, and strong governance.

3. Market risk: Off-take (e.g., for hydrogen or processed crops) may not materialise.

Mitigation: Anchor demand via binding contracts, diversify markets, use blended finance.

4. Credit risk: Farmers default due to climate or market shocks.

Mitigation: Use aggregation, insurance, technical support, risk-sharing mechanisms.

5. Financial risk: Macroeconomic instability (currency, debt) could undermine viability.

Mitigation: Use multi-currency financing, hedging, cautious financial modelling.

7. The urgency for action – and the window to seize

There has perhaps never been a more critical moment for Sri Lanka. The 2026 Budget sends a powerful signal – that the government is serious about structural transformation. But signals are only as good as what follows. The window to convert budget ambition into real, on-the-ground green energy plants, flourishing farms, and modern infrastructure is open, but it will not stay open for long.

8. Call to action: What we urge the Government and stakeholders to do

To translate the promise of the 2026 Budget into real transformation, we urge:

1. Form a Green Infrastructure Task Force – bring together Ministries (Power, Agriculture, Finance), DFIs, NWG, private sector to design and prioritise a ‘green-agripipeline.’

2. Fast-track PPP and Investment Legislation – ensure the PPP Act and Investment Protection Act are passed, with clear procurement rules and investor protection.

3. Establish a Public-Private Delivery Unit in government to coordinate flagship projects (e.g., agrivoltaics, irrigation).

4. Launch a Transparent Monitoring Dashboard – publicly track commitments, disbursements, and impact.

5. Set up a Blended Finance Platform – NWG partners with DFIs and private capital to pool blended funds for green-agri projects.

6. Hold Regular Stakeholder Dialogues – bring together farmers, communities, private sector, civil society to monitor progress and adapt as needed.

10. Conclusion

The 2026 Budget offers a rare and promising blueprint. It signals alignment – between ambition and pragmatism, between green goals and economic growth, between state-led priorities and private capital. But ambition without delivery is simply aspiration. The burden now falls on all of us – government, private sector, financiers, civil society – to step up, execute, and hold each other accountable. Let us not let this moment slip. Let us build.

Sri Lanka is bracing for lower-than-expected tourism earnings following a downward revision in the estimated daily spending of visitors by the Sri Lanka Tourism Development Authority (SLTDA), a key metric used to calculate the industry’s contribution to the economy.

Addressing the media at the post-Monetary Policy Review briefing, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe said the SLTDA had identified weaknesses in its previous estimation method and corrected them based on a new survey.

‘There were some weaknesses in estimating the per day spending by the SLTDA and they have recognised the mistake and revised based on a new survey,’ he added.

The SLTDA had been depending on spending estimates drawn from a 2018 survey, but its updated assessment from August 2025 has prompted a sharp reduction in its per-day spending figure from $ 171 to $ 148.

Adding to that, CBSL Economic Research Department Head Dr. Sujeetha Jeganathan said the revision explains why tourism revenue has not kept pace with the rising number of visitors.

‘This is why even though we are seeing the tourist arrivals have almost gone to the 2018 level, in terms of earnings we are not going to reach the 2018 level. So we will end up closer to last year’s earnings levels,’ she noted.

The impact of the revision is already visible in official data. Tourism revenue rose just 0.3% in October despite a 21.5% surge in arrivals. In September, revenue increased only 1% while arrivals jumped 30%. Earlier in the year, July’s earnings fell 3% year-on-year (YoY) even though visitor numbers grew by 6.6%. In August, revenue dropped 8.2% despite a 20.4% rise in arrivals.

Tourism, which accounts for nearly 3% of GDP, generated $ 3.17 billion in 2024, up 53.2% from the previous year, is supported by a 38.1% increase in arrivals to 2.05 million.

But with the revised spending estimate, Dr. Jeganathan predicted that earnings this year are unlikely to hit the SLTDA’s ambitious targets of $ 5 billion in revenue and 3 million tourist arrivals.

Separately, First Capital Research in its latest tourism sector review noted that despite Sri Lanka’s tourism arrivals rebounding strongly, the corresponding earnings recovery has remained relatively subdued. ‘Despite expectations of $ 3.3 billion in earnings for 2025, this remains well below the 2018 peak of $ 4.4 billion,’ it noted.

It added that earnings performance from January to October reflects a clear shortfall compared to previous peak years, highlighting the persistent disconnect between the recovery in tourist arrivals and the corresponding growth in tourism earnings.

The trend suggests a shift towards shorter, lower-spending trips, driven primarily by regional travellers and backpacker segments rather than high-yield long-haul markets.

‘Although Asian countries such as India and China together account for the majority of arrivals, these markets typically record shorter stays, limiting their overall earnings contribution. China’s recovery remains below 2018 levels, and even high-spending Asian tourists tend to visit for brief leisure or business trips. In contrast, European markets, including Russia, Germany, and the Netherlands, show longer average stays, supported by growing interest in adventure, wellness, and Ayurveda tourism. The UK also maintains moderate stay durations, reflecting a mix of leisure and business travel. This highlights a key challenge for Sri Lanka, where arrivals are strong from Asia but longer-stay European segments contribute more meaningfully to occupancy and tourism value,’ it explained.

First Capital noted that this spending compression underscores the need to reposition Sri Lanka towards higher-value tourism experiences and extended-stay visitor segments.

Charith Asalanka’s early departure from Pakistan without playing in the ongoing T20I Tri-Series has raised an unnecessary debate about him losing the T20I captaincy for the upcoming T20 World Cup.

Putting the speculations to rest, chief cricket selector Upul Tharanga in a virtual media conference yesterday said: ‘Charith is still in our plans to captain the T20I side. We have not taken any decision to make a change. When we appointed him, we planned to have him as the Captain for the T20 World Cup.’

‘After this current series is over, we will have to see what options we have. With the World Cup around the corner, we cannot make radical changes. We have to discuss with the selection committee members and the coaches and decide which is most suitable for the team. With his experience, Charith will be an important player in our T20 World Cup side. We have seen what he is capable of. He has won matches on his own. He is in our T20I World Cup plans,’ said Tharanga.

‘Charith is not amongst the runs in T20I cricket and unfortunately, he had to return home due to a viral flu. The report from the physio said that it was difficult to say when he would recover from it. That is why we took the decision to send him back. If we were to continue keeping him in the team, we would be forced to pick a player as cover for him.’

Head Coach Sanath Jayasuriya said that every cricketer goes through a bad patch and it is the duty of the Coaches and those at the High Performance Centre (HPC) to rectify his mistakes and give Charith as much support and confidence to get him back on track.

What has fuelled a debate on Asalanka’s captaincy is the appointment of former skipper Dasun Shanaka as Vice-Captain for the Pakistan tour. With Asalanka returning home early, Shanaka has assumed the Sri Lanka captaincy for the ongoing T20I Tri-Series.

‘We appointed Dasun as Vice-Captain as a back-up plan for Charith in case he fails to regain his form. If you take Charith’s record in T20Is, he has not contributed anything substantial in his last 10 matches or so,’ said Tharanga. ‘We had to appoint Dasun because we don’t have many options for the captaincy. Dasun has the experience of being a former Captain and he has played cricket around the world.’