Category: Daily Financial Times

Citizens Development Business Finance PLC (CDB) sprinted to the finish line with a powerhouse performance at the 40th Mercantile Athletic Meet, reaffirming its place among the nation’s top corporate sporting contenders with a series of exceptional achievements.

Team CDB’s outstanding display featured new meet records, top individual titles and commanding overall rankings, showcasing both athletic prowess and CDB’s commitment to nurturing a winning culture.

This year, CDB athletes produced a wave of remarkable record-breaking moments. Bhakthi Wijesinghe set a new meet record in the Over-30 Women’s Triple Jump with a distance of 8.85m, while Gayan Thanthirige shattered the Over-30 200m record with an impressive 23.68 seconds.

In the Championship Category, A.P. Krishandan soared to a new Long Jump record with 7.18m, and Umaya Rathnayake delivered a blazing 57.87 seconds in the 400m hurdles to add another Championship record to CDB’s tally.

In the Novices Category, Thiviyan Puvika secured the 110m Hurdles record with a time of 17.30 seconds, rounding off an extraordinary set of performances.

Beyond the new records, CDB celebrated several standout individual victories. Bhakthi Wijesinghe won Best Athlete in the Over-30 Women’s category, while A.P. Krishandan emerged as a double-title winner, clinching both the Best Athlete – Championship Men and the prestigious Overall Best Athlete – Men titles. His dominance on the field established him as one of the star performers of the meet. This title of Overall Best Athlete – Men was won for the third consecutive year by Team CDB.

CDB’s collective efforts translated into strong overall results, finishing 5th among more than 51 competing companies with a remarkable 165 points. The team also captured both the Women’s and Men’s Overall Championships in the Champion Category, underscoring the depth, consistency, and competitive spirit across the squad.

The organisation’s success at the 40th Mercantile Athletic Meet reflects more than athletic achievement; it represents CDB’s commitment to developing well-rounded professionals, fostering sportsmanship and empowering its people to excel beyond their roles. By championing resilience, teamwork and performance excellence, CDB said it continues to cultivate a winning culture that thrives both on and off the field.

Fitch Ratings yesterday said the proposed transfers of State-owned shares of Housing Development Finance Corporation Bank of Sri Lanka (HDFC, BB+(lka)/Rating Watch Positive) to Bank of Ceylon (BOC, CCC+/AA-(lka)/Stable) and of State Mortgage and Investment Bank (SMIB, BB(lka)/Rating Watch Positive) to People’s Bank (Sri Lanka) (PB, AA-(lka)/Stable) are unlikely to affect the acquirers’ ratings.

‘The limited scale of the targets relative to the large state banks, and expectations around capital support, underpin our view,’ Fitch said in a statement.

The Government announced Cabinet approval on 11 November to transfer all direct and indirect State holdings in HDFC to BOC and SMIB to PB, respectively. The purchase consideration, structure and timeline have not been disclosed.

Fitch said it will assess final terms when they are available, including any consolidation method and timing.

‘We do not expect material changes to BOC’s and PB’s consolidated credit profiles from these transfers. HDFC and SMIB are small relative to their acquirers and the sector, accounting for 1%-1.5% of the acquirers’ bank-level assets,’ the ratings agency said.

HDFC and SMIB also have low risk densities due to their large exposure to Employees’ Provident Fund (EPF) backed loans, which are zero risk-weighted, limiting incremental risk-weighted assets.

The impact on the acquiring banks’ consolidated asset-quality metrics is also likely to be immaterial despite HDFC’s and SMIB’s significantly weaker asset-quality metrics than industry peers, as the acquirees are relatively small. EPF-backed loans carry a high impaired-loan ratio, but these are periodically settled by the Central Bank of Sri Lanka, reducing loss severity.

If a purchase consideration is involved, Fitch’s base-case expectation is that the Government will inject capital at least equal to the transaction price into the acquirers, such that capital ratios at BOC and PB are unaffected.

This would be consistent with the State’s record of being willing to support the banking sector when policy actions create capital needs. Absent such offsetting injections, any cash consideration could reduce the acquirers’ already modest buffers.

Capital buffers at BOC and PB are already under pressure from large exposures to the sovereign across loans and non-loan assets, Fitch noted.

These exposures attract capital deductions of 4% and 2% of BOC’s and PB’s risk-weighted assets, respectively, that the banks cannot include in regulatory capital, constraining loan growth relative to large private banks and weakening capital metrics compared with similarly rated peers.

BOC was recently required by the regulator to maintain a further 1% buffer over its total capital ratios. BOC’s and PB’s bank-level common equity Tier 1 ratios were 12.0% and 11.6%, respectively, compared with similarly rated peers’ 13.4%-16.7%.

BOC’s and PB’s national ratings reflect their superior domestic franchises that support their funding profiles, counterbalanced by weaker financial profiles relative to the domestic systemically important private banks.

Fitch said it will monitor disclosures of the transaction structure, valuation and any capital measures. A deviation from the expected capital support, or a materially larger consolidation impact on risk-weighted assets than we anticipate, could influence its assessment.

The Rating Watch Positive placed on HDFC’s and SMIB’s national ratings reflects Fitch’s view that these banks would potentially benefit from a very high likelihood of support from their new owners.

Sri Lanka’s 2026 Budget signals one of the strongest commitments to construction-sector investment in recent years, with more than Rs. 688 billion channelled into roads, housing, water systems, urban development and public infrastructure. The allocations, detailed in the BDO Budget Highlights 2026, outlines an ambitious rollout of projects expected to shape national connectivity, modernise cities and upgrade essential public services.

Highways dominate: A push to reconnect the country

The Transport, Roads and Highways Ministry receives the largest share, reflecting the government’s intention to re-activate suspended projects and deliver long-delayed transport corridors. Key provisions include: Rs. 342 billion for nationwide road development, Rs. 66.15 billion for the Kadawatha-Mirigama stretch of the Central Expressway, Rs. 10.5 billion and Rs. 20 billion for two further segments of Phase III, Rs. billion and Rs. 1.5 billion for land acquisition for the Kurunegala-Dambulla and Ruwanpura expressways, Rs. 330 million for feasibility work on a new elevated highway link to Marine Drive. This concentration of funding positions the road network as the backbone of the 2026 construction agenda.

Urban development: Building the next generation of cities

Urban development proposals signal an effort to reshape regional centres and improve municipal capability. Key provisions include:2 billion for feasibility studies across ten major towns, Rs. 500 million each for Matale access road widening and Ratnapura quarters relocation, Rs. 900 million for expanded waste-management facilities, Rs. 2.5 billion to strengthen local government infrastructure. These measures aim to lift the operational and planning capacities of fast-growing urban areas.

President and Finance Minister Anura Kumara Dissanayake

Housing and regeneration: Addressing urgent social needs

The 2026 Budget provides a wide span of housing interventions, from urban regeneration to community-specific projects. Key provisions include: Rs. 15 billion for the Urban Regeneration Project, Rs. 3 billion for low-income housing, Rs. 2 billion for disaster-displaced families, Rs. 5 billion for internally displaced communities, Rs. 4.29 billion to construct 2,000 houses for the Malayagam community, 1.18 billion for renovating older apartment complexes, Rs. 840 million for Kelani Valley Railway resettlement. This portfolio underscores a strong emphasis on housing affordability, resettlement, and structural rehabilitation.

Water and Irrigation: One of the year’s largest commitments

Water and irrigation receive nearly 200 billion, reflecting the sector’s vital role in agriculture and essential services. Key provisions include: Rs. 91.7 billion for major irrigation projects, Rs. 8.35 billion for small tank and canal upgrades, Rs. 6.5 billion for restoration of key canal systems, Rs. 5 billion for the Lower Malwathu Oya project, Rs. 85.7 billion for drinking water schemes, Rs. 1 billion for urban water improvements. Few sectors match this level of investment intensity within the 2026 Budget.

Industrial zones and public infrastructure: Supporting future growth

Additional allocations strengthen the industrial ecosystem and key public institutions:1 billion for new industrial zones, Rs. 1 billion for feeder/service zones, Rs. 2 billion for service zones in investment areas, Rs. 1.5 billion for reopening technology parks, Rs. 100 million for digital land systems.

Public-facility construction includes: Rs. 2 billion for the Inland Revenue Department headquarters, Rs. 500 million for Ratnapura City development, Rs. 500 million for Hatton and Matale town improvements, Rs. 200 million for new City Halls in Ampara and Monaragala, Rs. 2 billion for prison relocation and upgrades.

Implementation and procurement efficiency: A key sector expectation

With allocations of this scale spread across multiple ministries, industry stakeholders note that the effectiveness of the 2026 public investment program will depend heavily on timely implementation and efficient fund disbursement mechanisms.

Construction-sector professionals consistently emphasise the importance of: Streamlined procurement processes, Predictable project award timelines, Swift release of funds, and Transparent contracting procedures to ensure that allocated sums translate into real progress on the ground.

These expectations reflect a widely shared industry view that efficient implementation is essential for the full utilisation of the 2026 construction Budget, particularly given the significant commitments across highways, water infrastructure, and housing.

Citizens Development Business Finance PLC (CDB) sprinted to the finish line with a powerhouse performance at the 40th Mercantile Athletic Meet, reaffirming its place among the nation’s top corporate sporting contenders with a series of exceptional achievements.

Team CDB’s outstanding display featured new meet records, top individual titles and commanding overall rankings, showcasing both athletic prowess and CDB’s commitment to nurturing a winning culture.

This year, CDB athletes produced a wave of remarkable record-breaking moments. Bhakthi Wijesinghe set a new meet record in the Over-30 Women’s Triple Jump with a distance of 8.85m, while Gayan Thanthirige shattered the Over-30 200m record with an impressive 23.68 seconds.

In the Championship Category, A.P. Krishandan soared to a new Long Jump record with 7.18m, and Umaya Rathnayake delivered a blazing 57.87 seconds in the 400m hurdles to add another Championship record to CDB’s tally.

In the Novices Category, Thiviyan Puvika secured the 110m Hurdles record with a time of 17.30 seconds, rounding off an extraordinary set of performances.

Beyond the new records, CDB celebrated several standout individual victories. Bhakthi Wijesinghe won Best Athlete in the Over-30 Women’s category, while A.P. Krishandan emerged as a double-title winner, clinching both the Best Athlete – Championship Men and the prestigious Overall Best Athlete – Men titles. His dominance on the field established him as one of the star performers of the meet. This title of Overall Best Athlete – Men was won for the third consecutive year by Team CDB.

CDB’s collective efforts translated into strong overall results, finishing 5th among more than 51 competing companies with a remarkable 165 points. The team also captured both the Women’s and Men’s Overall Championships in the Champion Category, underscoring the depth, consistency, and competitive spirit across the squad.

The organisation’s success at the 40th Mercantile Athletic Meet reflects more than athletic achievement; it represents CDB’s commitment to developing well-rounded professionals, fostering sportsmanship and empowering its people to excel beyond their roles. By championing resilience, teamwork and performance excellence, CDB said it continues to cultivate a winning culture that thrives both on and off the field.

Central Bank (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said the surge in vehicle imports that followed the lifting of the five-year import suspension has now tapered off, with pent-up demand largely exhausted by November.

Speaking at the post-Monetary Policy Review meeting media briefing, Dr. Weerasinghe noted that Letters of Credit (LCs) for vehicle imports, which spiked sharply in July, have since declined, indicating a normalisation of demand.

He added that import prices for vehicles are also falling, contributing to a more stable and predictable market.

‘In July, August, and September, we saw a large number of imports. Now, the pent-up demand is over, and the demand has come down in November,’ he said, acknowledging that the initial rush for vehicles was slightly higher than the CBSL had anticipated.

According to the latest CBSL data, vehicle imports, including both personal and commercial units, totalled $ 286 million in September, pushing total imports for the first nine months of 2025 to $ 1.2 billion.

The lifting of the temporary suspension on vehicle imports on 1 February 2025 had triggered a wave of deferred purchases, driving up demand through the third quarter.

Dr. Weerasinghe said as the market is now moving towards equilibrium, easing pressures on foreign exchange outflows, it helps to restore balance between supply and demand in the external sector for broader economic conditions to stabilise.

People’s Bank has reported a Profit Before Tax (PBT) of Rs. 43.7 billion for the nine months ended 30 September 2025, delivering the best-ever results in the institution’s history.

With seven out of 10 Sri Lankans banking with People’s Bank and one out of every five retail and business loans in the country originating from the bank, this exceptional performance reinforces its position as the most trusted and influential financial services provider in Sri Lanka, it said in a statement.

The bank’s solo performance was the primary driver of this record-breaking achievement.

People’s Bank reported a standalone post-tax profit of Rs. 28.8 billion, marking the highest 9M profit in its history. This performance was recorded despite booking a significant amount as impairments on behalf of a few State-owned enterprises (SOEs).

Solo operating income stood at Rs. 121.9 billion, a substantial 99.4% increase, supported by exceptional core earnings after recording a gross income of Rs. 284.4 billion.

Net interest income nearly doubled to Rs. 103.9 billion, driven by effective asset-liability re-pricing amid changing market conditions, resulting in an improvement of the bank’s net interest margin to 4%, compared to 3.4% in December 2024. The bank also recorded its highest-ever net fees and commissions for the period, reaching Rs. 12.2 billion, reflecting strong customer activity and strengthened transactional volumes.

The balance sheet continued to expand steadily, with total solo assets rising to Rs. 3.6 trillion, deposits to Rs. 3.2 trillion, and net loans to Rs. 1.6 trillion.

Capital Adequacy Ratios remained strong, with Tier I at 11.5% and Total Capital at 16.0%, even after incorporating all prudential deductions, including those related to the SOE restructuring. Liquidity levels remained well above regulatory minimums, with the Rupee Liquidity Coverage Ratio standing at 287%.

While the bank’s solo results formed the foundation of its record performance, the Group’s consolidated results also remained strong.

Consolidated post-tax profit reached Rs. 30.5 billion, with operating income amounting to Rs. 139.5 billion, an 85% growth over the previous year. Consolidated gross income rose to Rs. 312.8 billion, and consolidated assets increased to Rs. 3.9 trillion, further demonstrating the Group’s resilience and the underlying strength of its subsidiaries. Consolidated net interest margins improved to 4.3%, supported by prudent margin management and heightened operational efficiency.

People’s Bank continued to demonstrate leadership in digital transformation, recording 5.7 million digital onboardings and 4 million mobile banking app registrations by end-September 2025. These figures reflect the rapid adoption of its enhanced digital platforms and reaffirm the bank’s position as Sri Lanka’s most accessible and inclusive financial institution.

Chairman Prof. Narada Fernando said: ‘We are pleased to present the third-quarter results for 2025, which reflect the bank’s sustained strength and resilience. The steady normalisation of previously challenged areas demonstrates the depth of the progress made, positioning People’s Bank to support the Government’s economic agenda while maintaining consistent and responsible profitability as a strong State institution.’

‘Despite ongoing macroeconomic complexities, we remain firmly committed to advancing our strategic priorities, driving innovation, and enhancing collaboration to deliver secure, seamless, and modern financial services to our customers,’ he added.

‘Our focus on expanding financial inclusion continues to guide our efforts to ensure that all Sri Lankans can benefit from the country’s economic recovery. Our vision is to be the nation’s foremost financial services provider – setting new benchmarks in service excellence, innovation, and contribution to national development. By staying focused on long-term priorities and strengthening partnerships at every level, we are confident in our ability to support a more inclusive, resilient, and prosperous future for all,’ Prof. Fernando said.

CEO/General Manager Clive Fonseka said: ‘I am proud to share that our 3Q results mark the highest performance in our institution’s history-an achievement that reflects the strength of our shared purpose and the dedication of our teams across the country.’

‘Importantly, these results were delivered while the bank was undergoing a robust business model transformation, shifting from a longstanding emphasis on State-sector financing towards competing more vigorously for private-sector business. This strategic repositioning, supported by operational excellence, customer-centric transformation, and strategic digital investments, has strengthened our foundation and enhanced agility, enabling us to deliver greater value to customers and stakeholders,’ he added.

KBSL Information Technologies, one of Sri Lanka’s longest-standing systems integrators and a member of the Agility Innovation Group, has appointed Pramukh Jayawardena as its new Chief Sales Officer (CSO).

This move reflects the company’s strategy to strengthen its leadership for a new phase of growth focused on technology excellence and customer value. “Pramukh brings the proven record and versatile depth we need to lead our sales organisation,” said KBSL COO and Acting CEO Aruna Dissanayake. “His ability to build high-performing teams and transform enterprise sales into consultative partnerships is essential. His expertise will be key in guiding our clients to make the best use of the strong application ecosystem we bring to the table on top of the next-generation green, intelligent, and cost-effective and secure infrastructure solutions to accelerate their innovation and deliver greater value.”

Jayawardena brings over 16 years of experience from the region’s top technology firms, with a record of building high-performing sales teams and driving business growth through innovation. His previous leadership roles include Millennium IT ESP, WSO2, Dialog Enterprise, H One, and Metropolitan Computers, covering enterprise technology and large-scale B2B transformation. Notably, he led sales for the SAARC region at WSO2, building partnerships and accelerating market growth. His background is noted for its versatility and depth, ranging from frontline sales to executing large-scale revenue strategies. He earned multiple awards recognising his performance and leadership impact. His journey reflects both depth and versatility, underscoring his ability to translate complex business challenges into achievable, customer-focused outcomes.

Jayawardena joins KBSL at a crucial time, as the company expands its focus on enterprise technology, cloud platforms, and digital transformation. His vision centers on translating business goals into tangible value for customers. In the short term, he plans to sharpen the sales function by optimising processes and focusing on measurable, data-driven decisions. His longer-term strategy emphasises sustainable, scalable growth that balances technology with human insight.

His strategic roadmap for KBSL emphasises five pillars of transformation: building a customer-centric culture, developing a strong partner ecosystem, investing in digital sales enablement, nurturing talent and leadership, and driving data-informed decision-making across the organisation.

“Sales is no longer about closing deals, it’s about solving problems,” Jayawardena explained. ‘Enterprises are looking for partners who understand their challenges and can connect innovation to measurable business results. That’s where KBSL can make the difference by combining our technical depth with a customer-first approach. We don’t just build relationships, we forge partnerships that empower our clients to achieve their most ambitious goals. Our vision is to be the trusted advisors and problem-solvers that our clients turn to first, every time,’ he said.

He believes enterprise technology sales must transform from a transactional process into a consultative partnership, where technology becomes a driver of customer outcomes. He added that technologies like AI, automation, cloud-native platforms, and advanced analytics will define the next phase of enterprise growth, and KBSL is positioned to help organisations harness these capabilities for transformation and resilience. Jayawardena is a Chartered Marketer (ACMA, CIM UK) and holds an MBA from Cardiff Metropolitan University (UK). His leadership philosophy, which centers on collaboration, curiosity, and accountability, complements his pragmatic, people-oriented style. These values align with KBSL’s mission to empower teams and customers alike to succeed in the digital age.

KBSL Information Technologies Ltd., is a leading force in Sri Lanka’s ICT landscape, delivering transformative solutions that power enterprise resilience and national infrastructure advancement. With over three decades of experience, KBSL specialises in integrated technology services spanning cloud architecture, data center modernisation, smart building systems, and managed IT operations.

Recognised for its strategic approach to digital enablement and operational excellence, KBSL continues to strengthen its partner ecosystem with global technology leaders to deliver best-in-class solutions locally.

As Sri Lanka accelerates its digital journey, KBSL remains a trusted partner in shaping a secure, scalable, and future-ready ecosystem that enables organisations to innovate with confidence.

Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said Sri Lanka’s gross official reserves are expected to climb to the highest level recorded since the height of the economic crisis by the end of December, whilst expressing confidence that the country will comfortably meet its reserves target under the International Monetary Fund (IMF) program.

Addressing the media following the latest Monetary Policy Review meeting, Dr. Weerasinghe said the final month of the year traditionally brings stronger foreign exchange inflows through export conversions, workers’ remittances, and tourism receipts.

‘These seasonal gains will be boosted further by the anticipated disbursement of the fifth tranche of the IMF Extended Fund Facility (EFF) amounting to $ 340 million, alongside $ 370 million in Budgetary support from the Asian Development Bank (ADB). Collectively, the Government will see fresh inflows of over $ 700 million, pushing reserves to their highest point since the crisis,’ he explained.

He noted that while November’s reserves will appear lower than October’s due to currency fluctuations and timing effects, a sharp rebound is expected in December. ‘We will easily achieve the reserves estimate for the year,’ he said, attributing the clarification to persistent speculation surrounding the exchange rate.

The Governor reiterated that the exchange rate will continue to be determined by market forces, with the CBSL intervening only to offset excessive volatility.

He pointed out that the recent fluctuations, including a roughly 5% depreciation this year, reflect underlying shifts in demand and supply. Dr. Weerasinghe said strong inflows from tourism, exports, and remittances continue to strengthen supply, while demand has increased notably with the resumption of vehicle imports and rising private sector activities.

‘There is a balance building between demand and supply. We have seen depreciation in recent weeks turn around into appreciation and now the currency is stable. Gradual, two-way movement is healthy and expected under the current regime,’ he said.

Dr. Weerasinghe also said Sri Lanka is on track to record a current account surplus of around 1% of GDP equivalent to $ 1 billion for 2025, driven by resilient external inflows.

He stressed that the recovery in imports is largely a reflection of improved economic activity, noting that the economy is projected to grow by 4.5% this year following a 5% expansion last year.

Going into 2026, he highlighted the importance of building monetary, fiscal, and reserve buffers to withstand any potential global headwinds.

In addition, he said inflation is expected to rise more gradually than previously forecasted, but should reach the CBSL’s 5% target by the second half of 2026.

The Cabinet of Ministers on Monday approved paving the way for a series of regulatory measures aimed at promoting the gem industry in Sri Lanka.

The approval enables the implementation of orders and regulations published in recent extraordinary gazette notifications that are designed to facilitate the import and taxation of genuine and semi-genuine gemstones. Among these measures is an order under Section 6 of the Value Added Tax Act No. 14 of 2002, published in Extraordinary Gazette No. 2461/43 on 7 November 2025, which allows the value added tax to be calculated based on the weight of imported gemstones.

In addition, the Cabinet sanctioned Revenue Security Order No. 04/2025, issued under the Revenue Security Act No. 19 of 1962 and published in Extraordinary Gazette No. 2461/40 on 7 November 2025. This order introduces new national sub-division customs codes for genuine and semi-genuine gemstones, enabling the application of VAT on the basis of weight.

Further, an order under Section 3 of the Ports and Airport Development Tax Act No. 18 of 2011, published in Extraordinary Gazette No. 2461/44 on 7 November 2025, allows the continuation of the new customs codes in relation to exemptions from ports and airport development taxes.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said these measures are expected to streamline gemstone imports, simplify taxation, and provide a boost to the gem industry, reinforcing the country’s position as a key player in the global gem market.

The proposal to this effect was presented by President Anura Kumara Dissanayake in his capacity as Finance, Plan Implementation and Economic Development Minister.

The Mercedes-Benz Fashion Week (MBFW), presented by the Academy of Design (AOD) and powered by DIMO, concluded its final showcase, ‘The Colombo Edit’, on Sunday at Cinnamon Life, City of Dreams. Day 5 featured eight fashion brands and designers who redefined contemporary style through sustainable creativity and craftsmanship, celebrating local heritage while elevating it for a global audience.