Category: Daily Financial Times

Samagi Jana Balawegaya (SJB) Parliamentarian S.M. Marikkar yesterday criticised the second Budget presented by the National People’s Power (NPP) Government, stating that it is a bland Budget with neither merits nor demerits.

Speaking at a media conference held at the SJB headquarters, Marikkar said the 2025 Budget was full of beautifully mixed words, like a children’s playbook but failed to bring any tangible relief to the people.

‘This year’s Budget has not reduced the prices of essential goods, electricity, water, school supplies, medicines, or bus fares. From the glass of water that you drink in the morning to the pill you take before going to bed, nothing has been reduced. Yet, the Government continues to boast about it,’ he said.

Marikkar said the NPP Government was acting as though it had been responsible for every major development in Sri Lanka’s history.

‘Looking at this Budget, it gives the feeling that from freedom to Sri Lanka to free education, the open economy, vocational education, to taking cricket to international stage, establishing universities to introducing Mahapola scholarship scheme to infrastructure projects to one million houses to Suwaseriya service have been introduced by this Government,’ he remarked sarcastically.

He also said that the NPP Parliamentarians and Ministers act like since the day Kuveniya arrived in Sri Lanka, the NPP had been working to develop Sri Lanka and they lacked knowledge on reality as some of them claim that economic issues were solved after President Anura Dissanayake took over.

However, Marikkar expressed gratitude to President Dissanayake for presenting a Budget with a backbone as he was fulfilling the needs of the Opposition.

‘When he was in the Opposition, Anura Dissanayake opposed the sale of State enterprises. Now, as President, he supports it. He is behaving like the grandson of J.R. Jayewardene,’ Marikkar said.

Marikkar strongly objected to the Government’s decision to lower the VAT registration threshold from Rs. 60 million to Rs. 36 million annual turnover, saying it would unfairly burden small and medium businesses.

‘Now, anyone earning about Rs. 300,000 a month must register for VAT and pay 18 percent. After covering electricity, water, and wages, small business owners are left with almost nothing. This policy will force them to pass the tax burden to consumers,’ he said.

Marikkar claimed that from 2026, even goods purchased from local shops would carry an additional 18 percent VAT and that was how the Government was oppressing the people.

Meanwhile, he accused the Government of failing to keep its earlier promises to reduce taxes on education, food, and health, as well as its pledge to cut electricity tariffs by one-third.

Speaking about upcoming elections, Marikkar said the SJB was ready for the Provincial Council elections but accused the Government of being afraid to hold them.

‘President Dissanayake said in Parliament that there is no money for the elections. But the government holds the majority and can easily bring a proposal to Parliament to make them happen,’ he said.

He confirmed that the SJB would not take part in the protest rally in Nugegoda on November 21, organised by other Opposition parties

Imagine a talented dressmaker in Sri Lanka who dreams of expanding her small business. She has a shop in town, a loyal customer base, and the potential to hire more staff. But there is one major obstacle – access to finance. Banks are hesitant to lend because, like many small and medium-sized enterprises (SMEs), she lacks fixed assets like land or buildings to offer as collateral for a loan. This lack of access to credit is a major brake on her growth – and the growth of countless other SMEs that form the backbone of Sri Lanka’s economy.

SMEs make up over 75% of enterprises, account for 45% of employment, and contribute 52% of the country’s GDP. Clearly, helping them thrive is key to national prosperity. A stronger financial system means more opportunities for businesses to grow and create jobs.

A smart solution: Reforming Secured Transactions

One of the most powerful ways to increase access to credit is to let businesses use what they already own – their movable assets – as security for loans. Collateral such as equipment, machinery, inventory, accounts receivable, and even crops are often the most valuable assets a small business has.

However, without a clear way for lenders to verify and record their interest in these movable assets, the risk of lending is too high. This is where a Secured Transactions Register (STR) comes in.

A Secured Transactions Register is a central, public database where lenders officially record their legal interest in personal property being used as collateral for a loan.

This simple mechanism creates transparency in credit markets. By reducing the risk for lenders – who now have a secure, verifiable claim on the collateral – it encourages them to extend credit to businesses that need it most.

Globally, countries that have implemented modern collateral registries have seen dramatic results. For example, according to the World Bank Group through its private sector arm, the International Finance Corporation (IFC), nations like Ghana, Viet Nam, Mexico and Colombia saw billions of dollars in new SME lending after adopting these reforms. This particularly benefits groups often restricted from traditional finance, such as women entrepreneurs, who are more likely to have movable assets that can facilitate business startup or expansion. In Ghana, the IFC-supported project has facilitated $ 53.1 billion in financing, equating to over $ 63,000 in new financing across all types of businesses – micro, small and medium enterprises – for every dollar spent on project expenses. This includes $ 525 million in financing to 194,000 women borrowers.

Sri Lanka’s journey to the STR Act

In 2011, the need for a robust credit infrastructure, including a well-functioning collateral registry system, was identified by the World Bank’s Financial Sector Assessment Program for Sri Lanka. This was identified as essential for increasing credit access for Sri Lankan SMEs.

In response, the Government reached out to IFC specifically for its technical expertise in financial infrastructure and private sector development. IFC’s technical assistance supported a collective effort led by the Central Bank of Sri Lanka (CBSL), Credit Information Bureau (CRIB) of Sri Lanka and the Ministry of Finance (MoF), engaging relevant stakeholders for intense consultations, leading to the development of the new law – aligned to international best practices – and consequential amendments to seven related laws enabling the operationalisation of the Secured Transactions Registry in Sri Lanka. Along the way, the initiative also benefited from budget support financing from the World Bank and the Asian Development Bank (ADB), having been included as a policy action trigger to move the reform forward.

With support from across the entire World Bank Group, the STR was brought to life through the collective efforts of the CRIB, CBSL and the MoF. This aligns with the National Financial Inclusion Strategy, which was developed with technical and financial assistance from IFC, placing access to finance for SMEs at its core. Under its regional initiative, the European Union is supporting the next phase of the STR’s rollout to drive awareness and to boost financial literacy.

With the STR Act passed, now is the time for implementation.

What does the STR mean for Sri Lanka?

The launch of the STR lays the foundation for a resilient and inclusive credit infrastructure for Sri Lanka. The system will feature:

Simple and inclusive rules: making it easier to establish security interests over movable assets.

A fast and efficient database: using a modern filing system.

Robust protections: outlining clear procedures and legal protections for both borrowers and lenders, including in case of default.

As part of this initiative, IFC will continue to advance financial literacy initiatives for SMEs, empowering businesses to leverage movable assets as collateral and thereby strengthening access to formal finance.

The Lanka Sugar Company, under the Ministry of Industries and Enterprise Development, launched its first brown sugar retail network in Nugegoda on November 11.

Associated Motorways Ltd., (AMW) recently marked another milestone with the grand opening of its newest showroom in Matara. The opening ceremony took place on 4 November at No. 537, Anagarika Dharmapala Mawatha, Walgama, Matara.

The launch of the new Matara showroom reflected AMW’s ongoing commitment to expanding its reach and delivering world-class automotive experiences to customers across the island. The state-of-the-art facility is designed to offer a full range of AMW’s renowned automotive products and services, providing greater accessibility and convenience for customers in the Southern Province.

The new showroom features an impressive display of Nissan and Suzuki vehicles, representing two of AMW’s most popular and trusted brands. Customers had the opportunity to explore the latest models from both brands, highlighting AMW’s dedication to offering quality, reliability, and innovation in every vehicle.

Further marking the success of the launch, the first set of Nissan Magnite and Suzuki Fronx vehicles were officially handed over to customers during the event, while several new customer bookings were also confirmed, a strong indication of the confidence and excitement within the Southern market.

AMW Managing Director Jawahar Ganesh said: ‘The opening of our new showroom in Matara marked another important step in AMW’s mission to bring quality, trust, and convenience closer to our customers. For over seven decades, AMW has been dedicated to enriching the lives of Sri Lankans through reliable mobility solutions, and this new branch underscored our continued focus on serving the needs of every region in the country.’

The ceremony was attended by members of the AMW management team, business partners, and well-wishers from the local community. Guests were given an exclusive look at the new facility and experienced first-hand AMW’s commitment to customer service and automotive excellence.

With over 28 years of existence in the development banking landscape, SDB bank continued to deliver sustainable financial performance during the third quarter of 2025, reflecting the bank’s sound fundamentals, disciplined balance sheet management, and continued focus on inclusive and purpose-driven banking. Demonstrating resilience amid a dynamic operating environment, the bank reported a Profit After Tax (PAT) of Rs. 254 million as at the end of Q3 2025, supported by strategic optimisation of yields and funding costs.

The quarter was marked by renewed credit growth, as loan disbursements accelerated across key sectors, underscoring confidence in the bank’s lending strategy and its strong customer relationships. Loans and advances to customers expanded by Rs. 9.7 billion on a year-to-date basis, while the Non-Performing Loan (NPL) balance declined, signalling improvements in asset quality and the effectiveness of the Bank’s risk management framework. Correspondingly, the Stage 3 loan coverage ratio improved to 52.28%, up from 47.78% in 2024, reflecting prudent provisioning and sustained collection efforts.

Net Fee Income increased by 33% year-on-year, driven by the bank’s continued expansion of fee-based services and customer engagement initiatives. This performance underscores SDB bank’s commitment to diversifying income sources beyond traditional lending and enhancing the value proposition offered to customers.

While overhead expenses increased modestly by 6% year-on-year reflecting targeted investments in human capital and service innovation, impairment charges declined by 11%, further supporting profitability. The bank maintained a strong Total Capital Ratio of 14.90% and a Liquidity Coverage Ratio (LCR) of 148.65%, comfortably exceeding regulatory requirements, which underscores its robust liquidity position and balance sheet stability.

During the quarter, SDB bank continued to optimise its funding structure, focusing on reducing high-cost borrowings while strengthening its low-cost deposit base. Although overall assets contracted slightly by 1%, primarily due to the repayment of short-term liabilities and the appreciation of the Sri Lankan rupee, the bank maintained a stable financial position with a healthy liquidity buffer to support continued credit expansion.

SDB bank Executive Director and CEO Kapila Ariyaratne said: ‘Our Q3 results demonstrate the Bank’s continued ability to navigate evolving market conditions with prudence and purpose. The consistent improvement in revenue streams and asset quality validates our long-term strategy of balancing growth with sustainability while remaining committed to our core purpose of empowering communities, supporting MSMEs, and strengthening the cooperative sector. We also continued to invest in human capital and our digital and ESG-led transformation.’

Sri Lanka’s economy maintained its recovery momentum during the quarter, underpinned by fiscal consolidation, structural reforms, and rising investor confidence. In this favourable backdrop, SDB bank continues to reinforce its role as a catalyst for inclusive growth, advancing sustainable finance, expanding digital accessibility, and fostering resilience within communities across the island.

Colombo stock market extended its post-Budget rally to a second session yesterday with the benchmark index setting a new high and turnover exceeding Rs. 8.2 billion on robust investor activity.

The ASPI closed up 0.34%, gaining 79.57 points to 23,582.16 and the active S and P SL20 was up 0.44%, or 28.56 points, to 6,528.60. The market turnover was on nearly 223.1 shares traded and foreign investors were net buyers with a net inflow of Rs. 26 million. First Capital Research said the Colombo Bourse experienced mixed sentiment during early trading but eventually closed in positive territory with retail and HNW participation remaining robust throughout the session. RICH, DIAL, DFCC, AEL, and HNB emerged as key positive contributors to ASPI gain while turnover reflected a 21% increase against the monthly average of Rs. 6.8 billion.

The Capital Goods sector dominated activity, accounting for 28% of total turnover, followed by the Banking and Food, Beverage and Tobacco sectors, which collectively contributed 35%.

Five Indian technology companies, Infosys, Tata Consultancy Services, Protean e-Gov Technologies, RailTel Corporation, and Bharat Electronics, have been shortlisted to bid for Sri Lanka’s upcoming Unique Digital Identity (SL-UDI) project.

The firms were pre-qualified by India’s National Institute for Smart Government (NISG), which is overseeing the selection of a Master Systems Integrator (MSI) responsible for developing, implementing, and maintaining the national digital ID system. The process follows a tender call issued in September under reference NISG/SLUDI 2025.

According to NISG, the shortlisted bidders will advance to the techno-commercial stage and are scheduled to visit Sri Lanka next week at their own expense.

Sri Lanka’s Ministry of Digital Economy and the Information and Communication Technology Agency (ICTA) have meanwhile begun identifying a local Managed Service Provider (MSP) that will take over operations of the digital ID platform once the system is fully deployed.

The initial implementation phase is being financed through a grant from the Government of India under the MOSIP (Modular Open Source Identity Platform) framework. The selected MSI will oversee the build and rollout before handing over system operations to the Sri Lankan MSP, which is expected to be appointed by December 2025.

The transfer process will include a six-month joint phase for training and system familiarisation to ensure a smooth transition. The success of the SL-UDI initiative, officials said, will depend heavily on the efficiency and capacity of the local MSP once operational.

Sri Lanka aims to issue its first digital ID cards by the third quarter of 2026, as announced by President Anura Kumara Dissanayake in his recent Budget speech.

Organised by the Italian Embassy in Colombo in collaboration with leading hotels and restaurants, the tenth edition of the Worldwide Week of Italian Cuisine begins in Colombo on 15 November 2025.

Highlighting Italy’s rich gastronomy and global food culture, the culinary week will feature a collective of four 5-star hotels and five renowned Italian restaurants, showcasing artisan-crafted menus reflective of the authentic tastes and regional specialties that define Italian cuisine.

Participating venues and chefs include:

The Kingsbury: Chef Paolo Collavini, an Italian native with over 30 years of global culinary experience, serving signature Italian creations.

Amari Colombo (Prego): Chef Michele Bravo, Corporate Chef at ONYX Hospitality Group, presenting sustainable, innovative dishes.

Cinnamon Life (Bistro de Marée): Chef Alessandro Dentone, regional representative for Liguria of Mare in Italy, showcasing Italian excellence.

ITC Ratnadeepa: Chef Antonio Savino, a master of authentic Roman cuisine with over 20 years of experience, leads Le Voilà Banqueting in Rome, crafting innovative dining experiences for clients from Gucci to the G20.

Lago Italian Bistro owned by the Rocchi family prepares to showcase a piece of Italy’s Lake Como.

AQUA Forte, AQUA Pazza, AQUA Pizza: Chef Roberto Vicario, co-founder and Executive Chef of AQUA Family, delivering fine dining and serving Neapolitan pizzas.

Dolce Italia Restaurant: Chef Manuela Prugnoli, presenting a signature collection of Italian dishes for the weekend.

Ahead of the week, the webinar ‘Alla Scoperta dell’Arte della Pasticceria Italiana’, organised by the Italian Trade Agency (ITA), will be held on 13 November offering a deep dive into Italian pastry techniques.

The Worldwide Week of Italian Cuisine, promoted by the Italian Ministry of Foreign Affairs, seeks to celebrate Italian gastronomy, sustainability and the cultural identity behind Italy’s food traditions. Guests will experience regional specialities, masterclasses, and a focus on the relationship between Italian food, agriculture, and sustainable living.

The National Olympic Council of Sri Lanka (NOCSL) successfully hosted a seminar on ‘Strengthening Good Governance in Sri Lanka Sports Organisations’ at Olympic House in Colombo recently with Prof. Geoffrey Dickson of La Teobe University, Melbourne, Australia.

The event brought together leaders of national sports federations, as well as officials from the Sports and Education Ministries to discuss integrity, accountability, and governance reform in Sri Lankan sport.

NOC Sri Lanka Education Committee Treasurer and Chairperson Prithiviraj Perera highlighted the urgency of rebuilding governance structures to restore international confidence and funding. He urged closer collaboration among federations and State agencies to strengthen transparency and efficiency.

Delivering the keynote, Prof. Dickson stressed that successful reform goes beyond regulation it requires a cultural transformation within sporting organisations. He drew lessons from Australia’s Sports Commission showing the independence, accountability, board renewal, and transparency, commending Sri Lanka’s National Sports Association Regulations as a progressive step forward. He ended as saying governance reform provides the rules but culture gives those rules in life giving the organisational culture ultimately determines the success of governance frameworks.

This initiative reinforces NOCSL’s ongoing commitment to promoting good governance, integrity, and ethical leadership across Sri Lanka’s sporting landscape.

Manchester City celebrated Pep Guardiola’s 1,000th game in management with a statement 3-0 win over Liverpool to close to within four points of Premier League leaders Arsenal.

Erling Haaland shrugged off missing an early penalty on Sunday to head in his 99th Premier League goal before Nico Gonzalez’s deflected effort and a wonder strike from Jeremy Doku confirmed City’s status as Arsenal’s major title rivals.

Liverpool have now lost four of their last five league games to leave the defending champions down in eighth, eight points off the top.

Arsenal’s 10-game winning run came to an end in a 2-2 draw at Sunderland on Saturday and Guardiola’s men took full advantage in the battle of the two sides that have dominated English football’s Premier League over the past decade.

Even if decisions went against Arne Slot’s men, this was another display of how far they have fallen since cruising to a 2-0 win at the Etihad in February.

The Reds showed signs of a revival in beating Aston Villa and Real Madrid in the past eight days, but had no answer to the slickness of a rejuvenated City, who have won 11 of their last 14 games in all competitions.