Fitch places HDFC and SMIB on Rating Watch Positive pending acquisitions

Fitch Ratings has placed Housing Development Finance Corporation Bank of Sri Lanka’s (HDFC) National Rating of ‘BB+(lka)’ and State Mortgage and Investment Bank’s (SMIB) National Rating of ‘BB(lka)’ on Rating Watch Positive (RWP). HDFC’s rating was previously on a Negative Outlook.

The rating action follows the announcement by the Government on 11 November that the Cabinet of Ministers granted approval for the proposal to transfer all the State-owned shares of HDFC and SMIB to Bank of Ceylon (BOC; CCC+/AA-(lka)/Stable) and People’s Bank (Sri Lanka) (PB; AA-(lka)/Stable), respectively. The modalities and resolution of the intended acquisitions are not yet known.

‘The RWP reflects Fitch’s view that the acquisitions of HDFC and SMIB by BOC and PB, respectively, would result in HDFC and SMIB benefitting from a very high likelihood of support from their new owners,’ Fitch said in a statement.

Fitch will reflect this likelihood of support via support-driven national ratings upon the completion of each transaction. Fitch expects to resolve the RWP upon closing of the transaction, and the resolution is likely to take longer than Fitch’s normal Rating Watch resolution horizon of six months.

The ratings agency has revised its Outlook on HDFC’s National Rating to Negative from Stable on 15 August to reflect potential deterioration in its standalone credit profile relative to similarly rated peers, due to regulatory restrictions on deposit mobilisation and selected lending products. These restrictions have dampened HDFC’s competitive position in the housing loan segment, which is driven predominantly by Employees’ Provident Fund (EPF)-backed loans, and its loan and deposit market share.

SMIB’s capital position remains below the regulatory minimum capital requirement of Rs. 7.5 billion. The shortfall is estimated at around Rs. 2-3 billion based on the June 2025 financials.

‘SMIB is profitable, while we believe that earnings retention alone will be insufficient to meet this shortfall in the near to medium term.’ Fitch said. Fitch reviewed SMIB’s ratings with no rating action on 8 September 2025.

Commenting on factors that could, individually or collectively, lead to negative rating action/downgrade, Fitch said: ‘We would remove the ratings from RWP if the acquisition does not proceed (which is not our base case). In such an instance, we would be likely to affirm SMIB’s ratings at the current standalone-driven rating levels.

For HDFC, we may affirm the ratings at the current standalone-driven rating levels and reassign the Negative Outlook on the National Rating if regulatory restrictions remain in force which continue to pose risks to its business model and overall credit profile.

However, Fitch would also consider a downgrade in HDFC’s National Rating at the time of removing the RWP, if HDFC experiences material deterioration in its franchise due to a sustained loss of competitiveness in the housing-loan segment, particularly in EPF-backed loans. Negative rating action could also stem from persistent deterioration in HDFC’s financial profile, notably if capital levels fall below the regulatory minimum of Rs. 7.5 billion and remains unaddressed for an extended period. In addition, widening asset-liability mismatches arising from the bank’s inability to access funding could trigger a downgrade’.

On factors that could, individually or collectively, lead to positive rating action/upgrade, the ratings agency said: ‘We would be likely to remove the RWP and upgrade HDFC’s and SMIB’s National Ratings, which would then be based on Fitch’s view of the strength of extraordinary support from their new shareholders, following completion of the transaction. This could lead to a multiple-notch upgrade for HDFC and SMIB, given the shareholder strength. That said, Fitch would be likely to maintain a difference of several notches between the ratings of acquirers and the acquirees due to the latters’ limited strategic importance to the new owners’.

SMIB has a 1.78% equity stake in Fitch Ratings Lanka Ltd. No shareholder other than Fitch, Inc. is involved in the day-to-day rating operations of, or credit reviews undertaken by, Fitch Ratings Lanka.

SLC hands over 196 Level 5 certificates to umpires

Sri Lanka Cricket (SLC) recently handed over certificates to 196 cricket umpires who successfully completed the Level 5 Umpires Examination.

With this recognition, the qualified umpires are now eligible to officiate in school cricket tournaments organised by the Sri Lanka Schools Cricket Association, as well as District and Inter-District tournaments conducted by SLC.

The certification followed a competitive examination held by SLC, in which 253 candidates participated.

The certificate awarding ceremony was held at the R. Premadasa Cricket Stadium, with the participation of SLC Umpires Committee Chairman Samantha Dodanwela, Umpires Committee Members Mohamed Siddique and Gihan Weerasinghe, Head of National Cricket Operations Chinthaka Edirimanne, and Senior Manager – Umpire Development Chanaka Thenuwara.

Umpire Educators Tyrone Wijewardena, Sena Nandaweera, and Rusiru de Silva were also present.

The Level 5 umpiring qualification is the entry point for any umpire to begin rising through the ranks, with Level 1 being the highest qualification.

Is the Online Safety Act an unnecessary piece of law?

Defamation disputes have long been part of Sri Lanka’s legal landscape, well before the arrival of the Online Safety Act (OSA). The recent settlement of President’s Counsel Ali Sabry’s 2021 defamation suit underscores how fully the existing system already functioned. Although the allegations circulated online, the matter was resolved through established civil procedures, with no reliance on the OSA or any special law regulating online content.

The case involved accusations made by Former Nagoda Pradeshiya Sabha Chairman Ananda Lanerolle,

at a media briefing. He alleged that Sabry, then the Justice Minister, had improperly influenced a High Court judge by facilitating a letter in a pending case. The statement spread online and was available on YouTube. Yet the remedy Sabry sought and obtained was a purely civil one: an apology published in a national Sinhala-language newspaper and Rs. 1 million to be donated to the Apeksha Cancer Hospital.

This was not an isolated example. In May 2021, Sabry filed another civil defamation action against Ven. Madille Pannaloka Thera of the ‘Sinhale’ organisation for allegedly defamatory remarks posted on YouTube, Facebook and other platforms. He sought an injunction and damages of Rs. 1.5 billion. The Colombo District Court granted interim relief, and the case was settled in early 2022 after the monk agreed not to repeat the allegations and acknowledged Sabry’s right to pursue further legal action if he did.

These cases reveal a consistent pattern. Long before the OSA, Sri Lankan civil law offered effective remedies for harmful online speech. Injunctions, damages and court-ordered apologies were available and enforced.

A shift toward criminalisation

Today, however, with the existence of OSA, a growing number of similar disputes are being channelled through the OSA, often triggering criminal processes rather than civil ones. Complaints that would once have proceeded through the District Court are now filed under Section 24 of the Act.

Recent examples highlight this shift. Former PUCSL Chairman Janaka Ratnayake sought relief under the OSA, resulting in a conditional order from the Colombo Chief Magistrate’s Court restraining further publication. In another case, a YouTube channel was barred from disseminating allegedly defamatory content concerning Army Commander Lieutenant General Vikum Liyanage. The Kaduwela Magistrate’s Court likewise prohibited Newscentre employees from publishing statements about Hiru Media Network following a complaint under the Act.

These are the kinds of disputes previously managed through civil defamation actions. The question therefore arises: Is the OSA genuinely necessary to address online defamation, or has it simply become a more convenient instrument, especially for public officials and powerful complainants?

A look at Sabry’s own position

Sabry’s recent public reflections on his settlements highlight the central role reputation plays for public figures. He noted that political life does not entitle anyone to slander another person and that malicious defamation would be met with firm legal response. His position is understandable. Yet his own cases also demonstrate that he did not need criminal sanctions, nor a new regulatory structure, to secure remedies. The civil procedure code already provided the tools he required.

Convenience is not a justification for criminal law

Civil defamation law strikes an important balance. It offers remedies while avoiding criminalisation of speech. Courts may grant injunctions, award damages and require written apologies without resorting to arrests, bail conditions or criminal convictions.

The OSA, by contrast, introduces criminal liability for harmful online content. Complainants no longer have to expend resources proving their case; the State does it for them. It is, in many ways, the easier path. But should criminal law exist merely to make litigation easier for politicians and public figures?

The 2021 and 2022 cases involving Sabry demonstrate that civil law worked. It provided remedies. It upheld reputation. It achieved closure. It did so without having a chilling effect on free speech or involving the criminal justice apparatus.

A better way forward

The rise in OSA-based complaints demonstrates how easily civil matters can be drawn into the criminal cases, with significant implications for free expression. Yet recent history proves that Sri Lanka already had the tools to address online defamation without criminalising expression.

A more appropriate path would be to strengthen civil mechanisms, streamline procedures and ensure faster injunctive relief. These reforms would protect individuals from reputational harm while preserving the democratic value of free and open expression.

In its current form, the Online Safety Act is unnecessary, heavy-handed and vulnerable to misuse. It is not a necessary tool for the problem it claims to solve.

Sri Lanka showcases tourism, investment opportunities at Sydney Lions District 201N5 Conference

The Sri Lanka High Commission in Australia successfully promoted Sri Lanka as a vibrant tourist and investment destination at the Lions District 201N5 Conference, held on 15 November in Wentworthville, New South Wales.

The Sri Lanka stall attracted a large number of visitors throughout the day, including senior members of the Lions Club, business personalities, community leaders, and distinguished guests. Attendees were warmly welcomed with the renowned Sri Lankan hospitality, featuring complimentary Ceylon tea tasting, which received appreciation from participants.

High-quality tourism brochures, destination videos, and cultural material further highlighted Sri Lanka’s rich cultural heritage, scenic beauty and diverse experiences offered to the discerning traveller.

The event provided an ideal platform to engage with Australian travel enthusiasts and members of the business community. Many visitors expressed keen interest in travelling to Sri Lanka for leisure, cultural exploration, wellness tourism, and adventure activities.

The High Commission team also took the opportunity to discuss potential investment opportunities in key sectors including tourism, information and communications technology (ICT), and agriculture. Several business representatives showed strong interest in exploring partnerships with Sri Lankan counterparts.

The participation at the Lions District Conference helped enhance awareness of Sri Lanka’s strengths as a safe, welcoming, and competitive destination. It also strengthened people-to-people connections between Sri Lanka and Australia, while showcasing the unique warmth, flavours, and cultural charm of Sri Lanka.

The Bhagawan Sri Sathya Sai Baba’s mission – ‘Serve the Mankind’

Bhagawan Sri Sathya Sai Baba, one of the most revered spiritual masters of our time, was born on 23 November 1926. Having dedicated His entire life to graciously serving humanity, He attained Samadhi on 24 April 2011. His mission was to foster spiritual regeneration through selfless service, with a core message of love, peace, and compassion. He vowed to guide those who had strayed back to goodness, to relieve the suffering of the poor, and to help humanity recognise its own inherent divinity. He sought to achieve this by inculcating the spirit and practice of the principle that ‘Serving man is serving God.’

The lasting essence of Baba’s teachings, absorbed by his followers over the decades, was encapsulated in the timeless message: ‘Love All, Serve All; Help Ever, Hurt Never.’ This is a deeply pragmatic philosophy that each of us can live by in our day-to-day lives.

To reiterate Baba’s mission, His centenary celebration was recently held at Puttaparthi, India, with a series of events attended by devotees and dignitaries from around the world, including the Prime Minister of India, Narendra Modi. Speaking at the ceremony, Prime Minister Modi emphasised that the central value of Indian civilisation is Seva or Service. He observed that all of India’s diverse spiritual and philosophical traditions ultimately lead to this one idea. The Sanskrit phrase ‘Seva Paramo Dharma’, meaning ‘selfless service is the highest duty,’ has been the ethos that has sustained India through centuries of changes and challenges. Sri Sathya Sai Baba, Prime Minister said, placed Seva at the very heart of human life. He often proclaimed, ‘Love All, Serve All,’ and for Him, Seva was ‘love in action’. The many institutions established by Baba in the fields of education, healthcare, rural development and numerous other areas stand as living proof of his philosophy. Thus, spirituality and service are not separate but are different expressions of the same truth. It is not uncommon for a person to inspire others during their lifetime, but it is truly remarkable that the Seva activities initiated by Baba continue to expand even in his physical absence.

Other speakers at the event reminded the audience that Sathya Sai Baba’s mission had always been to silently transform the world by re-establishing the eternal values of truth, right conduct, peace, love and non-violence in the daily lives of all human beings. Baba referred to these as the building blocks of harmony. He also urged people to be patriotic and to respect the laws of the country they belong to, as this would lead to peace and harmony in society.

Baba’s teachings were universal and applicable to all religions. He did not seek to establish a new faith but rather encouraged individuals to return to the roots of their own religion and rediscover the universal truth contained within it. His purpose was to inspire all to become exemplary human beings through understanding and practising their own spiritual heritage.

Sri Sathya Sai Baba declared that He had come to serve all mankind, not any particular community, religion, country, or interest group. He did not come to establish a new religion or philosophy, but to reveal the foundation of love on which all life is based. He said, ‘I have come not to disturb or destroy any faith, but to confirm each in his own faith, so that a Buddhist may become a better Buddhist, a Hindu a better Hindu, a Christian a better Christian, and a Muslim a better Muslim. I have come to reconstruct the ancient highway to God, to instruct all in the essence of the scriptures, to shower on all this precious gift, to protect the ‘Eternal Righteousness’ and preserve it. My mission is to serve happiness, and so I am always happy to come amongst you, not once but twice, thrice, as often as you wish me. To set right those who have gone astray and to protect the good, Sai will be born again and again.’

To a spiritual aspirant, He is the Divine Master par excellence; to a rationalist, He is the greatest humanitarian on earth; to thousands of modern youth, He is a dynamic leader and a colossus of inspiration; to a devotee, He is divinity in human form; and to all who have had the blessing of beholding Him, He is pure love walking on two feet.

When asked, ‘Are You God?’ Baba replied, ‘Yes, I am God, and so are you. The only difference between you and me is that while I am aware of this fact, you are not.’ This sentiment echoes the words of Pierre Teilhard de Chardin, the twentieth-century French philosopher, palaeontologist, and Jesuit priest who explored the intersection of religion, evolution and consciousness. Teilhard de Chardin once said, ‘We are not human beings having a spiritual experience; we are spiritual beings having a human experience.’ This profound statement encapsulates his belief that our true identity is spiritual, and our earthly existence is merely a temporary phase of that larger reality.

The main purpose of the Sathya Sai Organisation is to help individuals realise their innate divinity and to practise divine love through selfless service. Baba’s teachings emphasise the inherent divinity within every human being, which can be realised through a moral life, selfless service, and spiritual practices that cultivate love, truth, and non-violence. His core principles include recognising the oneness of all religions, following one’s conscience, and developing inner purity through good thoughts, words, and actions. A central tenet of His philosophy is to purify one’s heart and mind by seeing service to others as service to the Divine itself.

Bhagawan Sri Sathya Sai Baba outlined His divine mission in His own words: ‘I have a Task: to foster all mankind and ensure for all of them lives full of Ananda (bliss). I have a Vow: to lead all who stray away from the straight path again into goodness and save them. I am attached to a Work that I love: to remove the sufferings of the poor and grant them what they lack.’

He taught that one should always remain aware that the Lord is omnipresent and act with the feeling that every deed is done for His pleasure, for this is the easiest way to control the mind. If one believes that the body belongs to the Lord, one will not sin through it. Instead, all actions and endeavours will be directed towards divinity. Recognising that one’s energy belongs to God prevents its misuse and ensures that life’s efforts are guided by higher purpose.

Baba reminded humanity that everyone strives for happiness, yet true bliss cannot be found in material things, the external world, or other people. Bliss resides within the self. We have forgotten our true nature, the source of eternal joy, and instead pursue artificial happiness in external forms. Real happiness dawns only when one turns inward to the heart, where the principle of love originates.

He urged people to cultivate love above all else, warning that hatred and anger were the root causes of fear and unrest. ‘Light the lamp of love within,’ He said, ‘and fear and illusion will vanish.’ He further taught that people must learn to impose a ceiling on their desires. Just as there are ceilings on land and property, there must be restraint on personal wants. ‘Less luggage, more comfort makes travel a pleasure,’ He explained. When desires are curtailed, happiness naturally increases. He reminded all that reality lies in simplicity and that minimalistic living helps eliminate distractions and fosters inner peace.

These are the basic teachings of all religions, simple truths that anyone can follow with common sense. When we were born into this world, we were all human beings-Homo sapiens-a Latin term meaning ‘wise man.’ This species is distinguished by a highly developed brain, articulate speech, and the ability to reason abstractly. Yet, despite these capabilities, humanity has divided itself along the lines of citizenship, religion, race, and caste, isolating and opposing one another, often with destructive consequences. The day we truly understand that we are all one, and that our mission is to serve one another with love and compassion, many of the world’s problems will cease to exist. When peace is established globally, the vast sums of money spent on wars can instead be channelled into uplifting the quality of human life and promoting longevity, health, and harmony.

By living according to the fundamental values of Sathya (Truth), Dharma (Right Conduct), Shanthi (Peace), Prema (Love), and Ahimsa (Non-Violence), as taught by Bhagawan Sri Sathya Sai Baba, we can embark on a journey of inner transformation and spiritual fulfilment. On this special day, let us remind ourselves of our true purpose in life. Celebrations serve as reminders, and this occasion invites us to reflect upon Baba’s simple yet powerful message: ‘Love in action is service.’ In today’s commercial world, the act of caring-which every human being needs from the womb to the tomb-getting into action is service. With every opportunity we receive to serve another, let us make this world a better place for all to live in peace, harmony, and joy.

Sri Lankan products and tourism on show at 70th YWCA Diplomatic Charity Bazaar in Bangkok

The Embassy of Sri Lanka in Bangkok showcased the Sri Lanka Pavilion at the 70th YWCA Diplomatic Charity Bazaar, held for four days from 06 to 09 November 2025 at Central World Pulse, Bangkok.

Organised in collaboration with the Young Women’s Christian Association (YWCA) of Bangkok, Ambassadors and the Spouses of Ambassadors in Thailand, the Diplomatic Charity Bazaar brought together representatives from 43 countries to celebrate a spirit of generosity, cultural exchange, and global friendship.

The Sri Lanka Pavilion was inaugurated by Ambassador and Permanent Representative of Sri Lanka to Thailand, Wijayanthi Edirisinghe. Publicity for the Sri Lanka Pavilion was carried out through both mass media and social media platforms, generating significant visibility and public interest.

A range of authentic Sri Lankan products, including Ceylon Tea, spices, and traditional handicraft items, were showcased at the Pavilion, attracting considerable attention and appreciation from visitors. The event served as an excellent platform to highlight Sri Lanka’s rich cultural heritage, artisanal craftsmanship, and world-renowned tea industry. In addition, tourism promotional materials were distributed to encourage visitors to explore Sri Lanka as a premier travel destination among the Thai public and the international community in Bangkok.

The 70th edition of the bazaar featured over 200 booths from around the world and included a special exhibition honouring her Majesty Queen Sirikit the Queen Mother, recognising her decades-long benevolence and support for the YWCA’s charitable initiatives.

The Embassy of Sri Lanka has continuously participated in the YWCA Diplomatic Charity Bazaar over the years and intends to continue its involvement, recognising the event as an effective platform to promote Sri Lankan products, culture, and trade initiatives.

Defending champions Kandy SC out for first game at Welisara

Defending league and Clifford Cup champions, Kandy Sports Club will launch their 2025/26 campaign with an away fixture against Sri Lanka Navy Sports Club at Welisara today (22 November).

Sailors, lifted by their spirited 31/31 draw against Havelocks in week one, have already shown they are capable of unsettling more fancied opponents.

Kandy enter yet another season as outright favourites, a position they have earned through remarkable consistency over three decades. Since securing their first ever league win in 1994 under Indrajith Bandaranayake, the club has gone on to win the championship an extraordinary 24 times, setting a benchmark unmatched in Sri Lankan rugby.

This year, leadership rests with Tharindu Chathuranga the former Kingswood player who begins his 12th season at the Up Country club. Despite the recent retirements of stalwarts, Nigel Ratwatte and Tarinda Ratwatte, Kandy’s depth remains formidable. Star centre, Danushka Ranjan will miss the opener due to injury but is expected to return for the Sri Lions encounter in Colombo a week Later.

Kandy’s strength lies in their blend of experienced campaigners, Heshan Jensen, Srinath Sooriyabandara, Dinal Ekanayake combined with exciting young talent from Kingswood and Trinity. Their balanced, well-coached unit continues to make them the most complete side in the league.

Meanwhile Sailors put up a brave effort to come on equal terms against the Park Club. Thilina Weerasinghe, Isuru Congahawatte are stand out players for the, plus playing at home they can put the defending champions under pressure but the question remains if they can pace out the entire 80 minutes of play.

Meanwhile, Havelock SC still ruing their opening-week draw against Navy, face a must-win clash against Sri Lions. With the league being short and competitive, the Havies know that any early setback could prove costly as the second round approaches.

Mercedes-Benz Fashion Week – Day 2

The Mercedes-Benz Fashion Week (MBFW) kicked off on Wednesday (19) with the Emerging Designer Runway at Cinnamon Life, City of Dreams.

Powered by DIMO and presented by AOD Academy of Design. Day 2 featured 28 design collections, showcasing the bold and the brave of Sri Lanka’s next generation of fashion talent. These young stars, challenge conventions with fearless creativity, weaving sustainability, technology, and identity into original statements of style and collections that collaborate with industry, each collection tells a story of experimentation, mentorship, and industry-ready creativity. – Pix by Upul Abayasekara

Opposition stages joint rally in Nugegoda as leaders vow to topple Govt.

Several opposition parties yesterday held a joint protest rally under the banner ‘Maha Jana Handa’ at the Ananda Samarakoon Open Air Theatre in Nugegoda, marking a rare moment of cross-party mobilisation against the Government.

The rally brought together representatives from the UNP, SLFP, SLPP, PHU and the New Democratic Front (NDF). However, key opposition players including the Samagi Jana Balawegaya (SJB), Sarvajana Balaya, and the National Freedom Front (NFF) were notably absent.

SLPP National Organiser Namal Rajapaksa, addressing the crowd, said the objective of the gathering was not personal gain, but the public interest shared by all participating political parties.

He warned senior State officials, including the IGP and public servants, who act beyond their duties in favour of the Government to continue their jobs diligently, insisting that political issues would be resolved politically.

He accused the Government of turning a blind eye to the plight of farmers, stating: ‘Those who once worked in the paddy fields wearing a loin cloth are now in Parliament wearing suits, neglecting the farmers of this country.’ He criticised delays in fertiliser distribution and warned the Government ‘not to harm the farming community of this country.’

Rajapaksa also vowed to build public momentum to oust the Government. ‘A ship is not built to stay anchored in the harbour. We will create strong public opinion and at the first opportunity we get, we will topple this Government,’ he said.

UNP Deputy Secretary General of Political Mobilisation Harin Fernando referred to Namal Rajapaksa as the ‘Prince of the Stage’ and a key second-tier SLPP leader.

He said former Presidents Mahinda Rajapaksa, who ended the 30-year war, and Ranil Wickremesinghe, who stabilised the economy during the crisis, must be remembered.

He questioned the capacity of the current leadership, asking: ‘What kind of a fool is he when there are leaders like this?’

PHU leader Udaya Gammanpila said the rally marked the beginning of a larger political movement. He claimed the event had ‘rocked the Government,’ which he alleged held a separate meeting in Tangalle on Thursday attended only by people ‘brought in by the Police.’

He asserted the Government had believed it could remain in power another four years but vowed: ‘We won’t let that happen.’

Former Private Secretary to Gotabaya Rajapaksa, Sugeeswara Bandara, claimed President Anura Kumara Dissanayake and his 159 MPs of wanting to ‘harm the Buddhist culture of this country.’

NDF MP Chamara Sampath Dassanayake said the opposition would ‘make a leader’ when the time comes, and install him in the Presidential seat, adding that the Government need not concern itself with who that person will be. He also questioned the qualifications of Public Security Minister Ananda Wijepala and Deputy Minister Sunil Watagala, challenging them to disclose their academic credentials before raising questions about Namal Rajapaksa’s legal qualifications.

Meanwhile, the Police Media Division issued a statement regarding the use of loudspeakers during the rally, citing the ongoing GCE Advanced Level examination held yesterday from 8.30 a.m. to 11.40 a.m. and 2.00 p.m. to 5.10 p.m. at nearby examination centres. Police instructed organisers to restrict loudspeaker use strictly within the premises to avoid disturbing students. Later, Police officers removed loudspeakers installed outside the authorised area.

CCB targets higher coconut output in 2026 amid concerns over leaf blight

Sri Lanka’s coconut industry is planning a stronger production year in 2026, with the sector setting a target of 4.2 billion high-quality nuts, according to the Coconut Cultivation Board (CCB).

According to latest Central Bank data, total Coconut production amounted to 1.92 billion nuts year-to-date August 2025, down 4.8% from 2 billion a year ago. However, coconut exports grew 35% year-on-year to $ 367.5 million during the same period.

The average gross price of a nut increased 53% year-on-year to Rs. 138.25 in August 2025.

CCB Chairman Dr. Sunimal Jayakody said funding support for plantations has improved, with next year’s Treasury allocation higher than in recent periods. He noted that output fell last year due to shortages of compost, including the lack of APH compost, which slowed cultivation activities.

Dr. Jayakody cautioned that leaf blight remains a significant threat, adding that no effective treatment is currently available. Infected sections must be removed to prevent the disease from spreading.

The disease has been reported across Weligama, Matara, Galle and Hambantota, and the Board is taking steps to contain its impact on plantations.

Sri Lanka produces between 2.8 to 3 billion coconuts annually, with about 70% consumed domestically and the balance used by the coconut-based products industry, which still faces a supply shortfall, according to President Anura Kumara Dissanayake’s 2026 Budget speech.

To increase long-term production, the Government has allocated Rs. 600 million to expand cultivation in the Northern Coconut Triangle, following recommendations from the Coconut Research Institute.

The President noted that while commercial growers adopt fertiliser and moisture-retention practices, smallholders with less than 5 acres have been slow to do so. The Coconut Cultivation Board’s mulching program currently covers about 4,000 acres, but wider expansion is needed.

To meet medium-term productivity and export targets across the estimated 447,000 acres under coconut, the Government proposes allocating Rs. 2.5 billion for a structured program to incentivise these smallholders.