Category: Daily Financial Times

Cable Solutions PLC has appointed Rashmini Mather to its Board as a Non-Executive Independent Director.

Mather is a seasoned communications and Government Relations professional with over 20 years of experience across the United Kingdom and Sri Lanka.

Her career began in print media and corporate communications, progressing into strategic communications roles on major international projects such as the London 2012 Olympic and Paralympic Games, the UK Government’s global GREAT campaign, and within the UK Prime Minister’s Office.

Between 2015 and 2019, Mather contributed both pro bono and as a consultant to the Government of Sri Lanka, focusing on the development of the tourism sector.

She served as Assistant Chief of Staff to the Prime Minister, authored Sri Lanka’s Tourism Vision 2025, and was the principal architect of the Tourism Strategic Plan 2017-2020, with a particular emphasis on conservation and sustainability.

She also headed the Prime Minister’s Tourism Task Force Secretariat.

In 2020, she co-founded BOTANISTRY, a premium wellness brand based in New Zealand, inspired by her passion for natural health and sustainable living.

Mather currently serves as Head of Strategic Communications and Partnerships at Dilmah Ceylon Tea Company.

She is an alumna of Colombo International School, holds a Bachelor’s degree from the University of Bristol, and a Master’s degree from the London School of Economics and Political Science (LSE).

Inventive Polymers Lanka Ltd., (IPL) celebrates its 7th anniversary, marking seven years of innovation, growth, and purpose-driven progress.

Founded in 2018 as a subsidiary of Stafford Motor Company Ltd., IPL has rapidly established itself as a leading name in Sri Lanka’s polymer manufacturing industry. With a clear mission to develop smart, sustainable solutions for a safer future, the company continues to push boundaries in both product innovation and local manufacturing.

As part of its ongoing growth, IPL has recently expanded its product portfolio to include a range of in-house manufactured items under its own flagship brand. These additions feature overalls, corporate T-shirts, and branded corporate gifts such as glass water bottles, key tags, caps, and more-all designed to meet evolving customer needs while maintaining IPL’s standards of quality and innovation.

Over the past seven years, IPL has pioneered advanced plastic injection moulding and testing capabilities, enabling the production of high-performance, recyclable polymer products for both domestic and international markets. The crown jewel of this journey is undoubtedly the company’s flagship innovation: SHAKO Helmets.

Born from IPL’s in-house R and D and a deep commitment to public safety, SHAKO is a premium, polymer-based helmet designed to meet the evolving needs of modern riders. Engineered with precision and tested under rigorous conditions, SHAKO helmets combine safety, style, and sustainability in one compelling product.

IPL Director Chavinka Sumanatilleke said: ‘SHAKO represents everything we stand for-innovation, integrity, and impact. It’s not just a helmet; it’s our promise to protect lives on the road while protecting the planet.’

On Friday, 7 November 2025, all eyes will turn to Parliament as the President, in his dual capacity as the Minister of Finance, presents Sri Lanka’s Budget for 2026.

This annual ritual is far more than a parliamentary formality – it is the single most watched economic event of the year. From the household in Jaffna to the factory in Katunayake, from the small trader in Galle to the banker in Colombo, everyone waits to see what the Budget will bring.

The Budget is where the Government reveals its priorities – how much revenue it plans to collect, how it intends to spend it, and how it plans to balance between development and debt. But it is also a mirror of the nation’s direction: its fiscal discipline, political vision, and development ambition.

What is a national Budget – and why it matters

A national Budget is the Government’s annual financial blueprint. It forecasts how much income (mainly from taxes and non-tax revenues) the Government will collect and how much it will spend on salaries, pensions, social programs, defence, and infrastructure. It also details whether the State will borrow or save, and from whom – domestic markets, international lenders, or donor agencies.

In Sri Lanka, the Budget takes the form of an Appropriation Bill submitted to Parliament, accompanied by a comprehensive Budget Speech and a detailed set of estimates. These documents lay out the numbers for each ministry, department, and capital project, as well as the Government’s economic policy direction for the year ahead.

Simply put, it is both a financial plan and a policy statement.

A brief history of Sri Lanka’s Budget journey

Sri Lanka’s budgeting tradition dates back to 1947, when the first post-independence Budget was presented by J.R. Jayewardene, then Minister of Finance. Since then, every successive Government has used the Budget not only to allocate funds but also to announce key reforms and economic strategies.

Over the decades, several Budgets stand out:

1950s: Focused on nation-building and post-independence infrastructure.

1970s: Characterised by state control, import substitution, and subsidies.

1977 Budget: Marked a turning point under President Jayewardene, opening the economy to foreign investment and free trade.

1990s: Saw fiscal expansion with privatisation and public-sector reforms.

2005-2010: Emphasised post-war reconstruction and rural infrastructure.

2022-2024: Faced the challenge of debt default, IMF negotiations, and fiscal stabilisation.

2025: Focused on recovery, reform, and renewed credibility in public finance.

The 2026 Budget, therefore, is expected to signal a transition from stabilisation to sustainable growth – consolidating fiscal reforms while setting the foundation for competitiveness and investment-led expansion.

Why the general public watches the Budget

For ordinary citizens, the Budget is not about policy jargon – it’s about daily life.

Cost of living: Any change in VAT, fuel subsidies, or import taxes immediately affects prices of goods and transport.

Employment: New projects and public investment create direct and indirect job opportunities.

Public services: Allocations to health, education, and social welfare determine access to essential services.

Welfare measures: Salary adjustments, pensions, and Samurdhi benefits often see revisions in the Budget.

Inflation control: Fiscal measures influence inflation, purchasing power, and interest rates.

For example, the 2025 Budget’s revision of fuel pricing and rationalisation of subsidies significantly altered household expenses – a reminder that every Budget has tangible, pocket-level implications.

Why businesses and the private sector are deeply engaged

For the business community, the Budget is a policy signal that shapes strategy for the year ahead.

1. Tax and tariff changes: Shifts in corporate income tax, VAT thresholds, excise duties, and customs tariffs directly affect profitability and pricing strategies.

2. Incentives and exemptions: Special provisions for export industries, tourism, IT, or renewable energy determine where investments flow.

3. Public investment projects: Large-scale infrastructure allocations open opportunities in construction, logistics, and technology sectors.

4. Ease of doing business: Reforms to streamline tax administration or customs clearance are often introduced through Budget proposals.

5. Credit and demand environment: Expansionary Budgets can stimulate domestic consumption, benefiting retail and manufacturing sectors.

As Chambers of Commerce often emphasise, predictability and consistency in tax policy are crucial. Businesses prefer fewer surprises and more clarity – making pre-Budget consultations an important exercise for both Government and industry.

Why donors and development partners care deeply

Sri Lanka’s 2026 Budget will also be scrutinised by international donors, particularly the IMF, World Bank, ADB, and bilateral partners.

1. Fiscal credibility: Donors assess whether the Government is adhering to the IMF-supported fiscal consolidation path and debt sustainability targets.

2. Transparency: Well-documented and realistic budgets help maintain trust and attract further concessional financing.

3. Policy continuity: Donors prefer steady, long-term policy direction rather than short-term populism.

4. Project alignment: Many foreign-funded projects require matching domestic allocations; hence, donor confidence depends on budgetary prioritisation.

For instance, the IMF’s Extended Fund Facility requires Sri Lanka to maintain a primary surplus and to strengthen revenue collection through tax reforms. The 2026 Budget will thus be a decisive test of commitment to those targets.

Why the Central Bank and commercial banks pay close attention

The Central Bank of Sri Lanka (CBSL) and commercial banks treat the Budget as a critical macroeconomic indicator.

1. Borrowing requirements: If the Budget deficit is large, the Government must borrow more – impacting interest rates and liquidity in the financial system.

2. Inflation and monetary policy: Fiscal discipline supports CBSL’s price stability mandate; excessive spending pressures inflation.

3. Exchange rate stability: External borrowing and trade-related taxes influence foreign exchange reserves and the rupee’s stability.

4. Private credit: Heavy Government borrowing can ‘crowd out’ private sector lending, affecting business expansion and SME access to credit.

5. Investor sentiment: International bond markets and rating agencies watch the Budget for signs of fiscal prudence.

As seen after the 2022 crisis, coordination between the Treasury and the Central Bank is vital to avoid policy conflict and to rebuild credibility with both domestic and international investors.

The parliamentary Budget process

Sri Lanka’s Budget process follows a well-defined constitutional and parliamentary structure:

1. First reading: The Appropriation Bill is presented (usually in October).

2. Second reading: The Budget Speech – the main event – is delivered in early November.

3. Debate: Parliament debates the proposals over several weeks.

4. Committee stage: Ministry-wise allocations are discussed and voted upon.

5. Third reading: Final approval is granted before the end of the year.

For the 2026 Budget, the second reading and speech are scheduled for Friday, 7 November 2025, followed by detailed debates throughout November and early December.

Sri Lanka’s Budget evolution: From Spending to strategy

Traditionally, Sri Lankan Budgets were spending documents, emphasising subsidies, welfare, and state employment. However, over time, especially since 2019, Budgets have evolved into strategic economic roadmaps addressing debt, taxation, and competitiveness.

Key recent trends include:

Tax rationalisation: Broadening the tax base and reducing exemptions.

Digital revenue administration: Expansion of the RAMIS system to improve efficiency and compliance.

Public sector reform: Aligning expenditure to productivity.

Green growth and sustainability: Incentives for renewable energy, electric mobility, and environmental protection.

Export diversification: Encouraging IT, apparel, logistics, and agri-value addition.

The 2026 Budget is expected to build on these reforms while focusing on inclusive growth – ensuring recovery benefits reach SMEs and lower-income groups.

Public confidence and policy continuity: The twin pillars

Budgets succeed when they are credible and consistent.

Public confidence comes not from grand promises but from delivery – timely implementation of announced measures, clear communication, and measurable results.

In recent years, Sri Lanka’s Budgets have increasingly focused on transparency. The publication of Citizens’ Budgets, Budget Estimates Online, and open access to Treasury statistics has improved accountability. These initiatives should continue – as informed citizens are essential to fiscal democracy.

The 2026 outlook: From crisis management to long-term growth

The coming Budget will be judged on whether it can strike a balance between fiscal consolidation and growth stimulation.

Key areas to watch include:

Tax policy reforms: Simplification of VAT, potential new thresholds, and improved collection efficiency.

Public debt strategy: Continued focus on domestic financing and IMF-aligned restructuring.

Export promotion: Incentives for non-traditional exports and technology-driven industries.

SME support: Credit guarantees, simplified compliance, and market access initiatives.

Social safety nets: Better targeting of welfare for the most vulnerable.

Climate and green transition: Expansion of renewable energy projects and electric mobility incentives.

If executed effectively, these reforms could shift Sri Lanka from stabilisation to sustainable development – building fiscal strength without stifling opportunity.

Conclusion: More than numbers

Every Budget tells a story – of priorities, discipline, and vision.

The 2026 Budget will tell whether Sri Lanka is ready to move from rescue to recovery, from uncertainty to stability, and from dependence to confidence.

For citizens, it shapes daily lives.

For businesses, it sets the competitive environment.

For donors and financial institutions, it determines credibility.

And for the nation, it defines direction.

As the President rises to deliver the Budget speech this Friday, the nation will listen – not merely for figures, but for the hope that Sri Lanka’s economic narrative is turning a page.

It must have been a long ‘senior moment’ on my part because I never got the memo. Growing up the son of an editor, foreign correspondent and expert on world affairs, I picked up the practice of keeping track of international reports on Sri Lanka be they in the foreign media or released by recognised organisations. I never got the international report on drug addiction, drug trafficking, criminal drug lords and gangs, or drug transshipment through Sri Lanka that indicated the phenomena had escalated to such dangerously high levels as to warrant it being the President’s strategic national priority of the moment– in short, any report that Sri Lanka was an international or regional hotspot by comparative standards, for drug usage or as hub for the drug trade.

Without providing any credible statistical evidence from an authoritative independent source, President Anura Kumara Dissanayake declares that Sri Lanka’s drug problem is of such a magnitude that combating it is THE ‘national mission’ of the day.

AKD has done so at a time when many international reports have focused on rising, unprecedented levels of poverty in Sri Lanka, and related issues of the collapse of levels of nutrition, school attendance, and health. This cluster of socioeconomic issues should have been the priority and national focus, but instead of a ‘War on Poverty’, a ‘War on Drugs’ is deemed the national priority.

Even in Latin American countries which are hotspots of drug cultivation/manufacture and trade such as Colombia and Mexico, there are two diametrically different discourses. One is the progressive discourse (Gustavo Petro, Claudia Sheinbaum) which emphasises the socioeconomic root causes -poverty, unemployment, homelessness –and prioritises strategic programs to combat them, while of course making law and order more efficient. This is NOT the ‘War on Drugs’ discourse.

The second discourse is that of the Right, emphasising law and order, deployment of the military and intelligence, centralising command, and glorifying crackdowns using armed ‘kinetic’ methods, while the issue of poverty reduction is but a tokenistic footnote. Though pioneered by the George W Bush administration and revived by Donald Trump, it has been echoed by the Latin American Right. The recent Rio de Janeiro massacre was a shock to the left-leaning Lula administration including the Justice Minister-the decision was taken by the right-wing federal governor and administration of Rio.

The most horrendous mass manifestation of the ‘war on drugs’ was in Duterte’s Philippines. This is why Duterte’s overnight extradition to the ICC has caused no consequential mass political backlash in the Philippines.

President Anura Dissanayake’s anti-drug discourse is not of the Petro-Sheinbaum variety but of the Bush-Trump and Uribe (Colombia) variety. In fact, he has gone further and enunciated a particularly lurid vision of a parallel ‘Black State’.

‘.Consequently, a ‘black state’ has formed within the legitimate state institutions built to ensure national and public security.

.Thus, beneath the official State structure, a second network has been established to serve criminal interests. This country cannot have two states. There can only be one State, the legitimate State built by the democratic power of the people. The black state must be dismantled and brought to an end.

This issue has now infiltrated political parties. Some individuals have become Councillors and Chairpersons, while others are preparing separate documents to contest elections. At one point, this network grew under the protection of certain politicians. The fundamental seeds for establishing political influence, Councillors, government, even attempts to controlling governance, have already been planted and we have identified them. This is not something that emerged naturally; it has evolved over a long period with the blessing and involvement of certain politicians and public officials.

.We are establishing a National Operations Centre that will bring together the Police, the Armed Forces and all relevant agencies. This centre will integrate the Customs Department, the Department of Immigration and Emigration, the Department of Motor Traffic, the Police, the Armed Forces and the Intelligence Units into a single coordinated network.

.Furthermore, I expect that the media will maintain the necessary restraint and professionalism while reporting on this issue.

.Consequently, if the Police and relevant institutions are granted the necessary authority, this issue can be overcome .’

Why would a president give the drug problem of a country a higher profile than international law enforcement agencies, security agencies, developmental agencies or mass media give it? Why claim the country has ‘a black state within the official state’? Is it an attempt to attract the attention and approval of Donald Trump?

Clearly, Trump’s tale about Venezuela’s ‘narcoterrorism’ is a cover for ‘regime change’. Is Anura’s ‘drug war’ a cover for regime entrenchment?

Debt addiction

In the blackest of ironies, President Dissanayake declared a veritable war on drugs while diligently pursuing the economic equivalent of drug addiction. I refer to the plan to embark on a massive bond issue amounting to US$ 11.2 billion by 2030.

‘Sri Lanka plans to raise $ 11.26 billion through Sovereign Green and Blue Bonds by 2030 to finance renewable energy, biodiversity conservation, and other climate-related projects aligned with its 2050 carbon net-zero target, according to the National Climate Finance Strategy 2025-2030 (NCFS).

The NCFS notes that the Finance Ministry has already drafted a Sovereign Green/Blue Bond Framework and engaged an international rating agency to provide a second party opinion to ensure compliance with international standards.

The strategy was developed with support from the UK Government and the United Nations Development Programme (UNDP) and released last Friday.

.According to the strategy, successful implementation would position Sri Lanka as a regional leader in sustainable finance, improve its sovereign credit standing, and attract international climate-focused investment for projects such as renewable energy expansion, waste management, and biodiversity protection.

.Given the current constraints placed on Sri Lanka’s ability to access international capital markets, the identification of these financing instruments, the financing partners, and the linkages to the outputs will form the country’s Climate Finance Strategy.’

This looks to me like the installation of Green and Blue painted backdoors which get Sri Lanka back into the ruinous international money markets, or as the news report says, a method to ‘improve its sovereign credit standing .given the current constraints placed on Sri Lanka’s ability to access international capital markets’.

What lies behind the Green Door is a den of deepening debt, from which, just like Hotel California, ‘you can check out any time you like/but you can never leave’.

I get the point that this is for a noble purpose of raising cash for ‘green’ and ‘blue’ projects. However, when trapped in a hole-in our case the hole of foreign debt/debt repayment-the first thing to do is to stop digging. It doesn’t matter whether this time, you are digging for ‘rare earths’. Similarly, while the cause of financing green/blue projects is good, let’s recall that the worst drug addiction today is that of pain-killers which provide chronic pain relief. The upside hardly counts if the downside is far worse, and here the downside is the return to the international money markets and extension/enhancement of the curse of debt-slavery.

Any financing for green and blue projects should either be through direct foreign investment, or institutional means (bilateral or multilateral) of funding. I urge a moratorium on return to the international money markets for whatever reason, however laudable. If you are a hamster on a wheel of foreign debt and keep on running, it doesn’t matter if you tell yourself that you are training to represent your country at the Olympics.

Meanwhile, in the face of all Asian evidence that this is utterly unwise, AKD is busily locking the small island of Sri Lanka into dependence in the vital energy sector, on its giant neighbour India.

‘India and Sri Lanka have taken another step forward in their landmark power grid interconnection project, holding a virtual meeting on Thursday (30), to discuss implementation modalities and next steps for regional energy integration.

Senior officials from both countries met virtually to deliberate on the operational framework for the proposed India-Sri Lanka power grid interconnection, a key regional energy initiative aimed at enhancing cross-border electricity trade. The Indian delegation was led by Power Ministry Secretary Pankaj Agarwal, while the Sri Lankan delegation was headed by Energy Ministry Secretary Prof. K.T.M. Udayanga Hemapala.’

With the signing on the sidelines of the ASEAN summit of a US-India 10-year Major Defence Partnership, Sri Lanka’s energy integration with India would mean entering the broader Indo-US strategic and security matrix, placing itself on one side in the Great Power competition and probably on a target menu in a Great Power clash.

UN arena: Cuba beats US

Colombo’s foreign policy establishment and commentariat, steeped in the diplomacy of dependence, had, if they cared to look and learn, a masterclass last week in fighting victorious diplomatic battles for one’s country against great odds. It was on Oct 29th in New York when Cuba moved its traditional resolution in the UNGA against the USA’s economic blockade.

First presented in 1992, Cuba’s resolution always won. Latterly, with the Obama and Biden administrations suitably embarrassed to attack it, the resolution cruised-through with near-unanimity. But this year was totally different.

US Secretary of State Marco Rubio, a Cuban-American from Miami, is bitterly hostile to the Cuban revolution. The Trump administration went flat out, sending diplomatic notes to UN member states signalling possible economic and legislative consequences of continued support for Cuba. These were brought to light and critiqued by Cuba’s Foreign Minister at briefings in Havana.

The address by the new US Ambassador/PR at the UNGA session on Cuba was so aggressive that he was reined in by the (German) President of the UNGA. It was a no-holds-barred frontal diplomatic battle between the world’s greatest power and cash-strapped Cuba which was being hit hard by a hurricane as the vote was taken in New York. Cuba defeated the USA by 165 votes to 7, with 12 abstentions.

Wartime and postwar diplomacy

Sri Lanka has its own diplomatic experience of success and failure to learn from:

(I) President Mahinda Rajapaksa’s wartime diplomacy, capped by our May 2009 UNHRC Geneva victory, was a substantive success.

(II) Pressured by Sinhala establishment hawks, the MR administration’s postwar/second term diplomacy was a failure, including in Geneva.

MR’s wartime/first-term success was greater than his postwar failure. Wartime and immediate postwar (Geneva) failure would’ve been catastrophic; postwar/second-term failure remains rectifiable.

This diplomatic history is attested to in a book by Judith Large, senior research fellow at the University of Kent. Titled PUSH BACK, its ‘strap’ or subtitle is ‘Sri Lanka’s Dance With Global Governance’ (Zed Books, London 2016).

The Bloomsbury blurb says ‘In this incisive new work, Judith Large investigates the ways in which the Rajapaksa government was able to subvert international diplomatic efforts.’ Ex-B.B.C correspondent Frances Harrison says it traces how Sri Lanka ‘got away scot free’. While the book’s title is PUSH BACK, the section with the actual subheading ‘Pushing Back’ in Chapter 3 deals with Sri Lanka’s win at the UNHRC in May 2009 (and quotes me at considerable length).

The book also deals with the defeat of Sri Lanka in Geneva from the 2012 resolution onwards, but suggests no linkage with 2009. Indeed, post-2009 discontinuity and the ’77-member’ Sri Lankan delegation’s boorish discourse and conduct are vividly recounted (‘Push Back’, p161).

The co-sponsored 2015 UNHRC resolution says in Preambular Paragraph 3 that the resolutions of 2012, 2013 and 2014 formed the basis of the 2015 resolution. The 2015 Resolution flows directly from the 2014 Resolution which mandated the Office of the High Commissioner’s investigation on Sri Lanka. The UNHRC resolution of 2015 makes no mention whatsoever of the UNHRC resolution of 2009– because 2009 was an outright victory for Sri Lanka and left no leverage which the West used or could use.

Unlike all other resolutions adopted at special sessions, including the co-sponsored US-SL 2015 UNHRC resolution, the May 2009 UNHRC resolution contained no call for follow up at the subsequent sessions of the Council. In 2009 we had taken Sri Lanka off the agenda of the Council and given our country a clean slate. For the next three years, there was no recorded attempt to bring a resolution against Sri Lanka in the UNHRC.

The hubristic flight of folly in international relations by the Sinhala hawks –who also comprised the pro-Israel caucus– in Mahinda Rajapaksa’s administration began almost immediately following the 2009 UNHRC-Geneva victory. Wikileaks cables show that while US Ambassador-at-large for War Crimes prosecutions Clint Williamson and his French counterpart Christian Bernier were dialoguing in Paris and New York about their failure in Geneva in May 2009 and reluctantly praising the ‘very effective diplomacy’ of ‘Sri Lanka’s representation in Geneva’, I was sacked six weeks after our victory, reversing a written presidential instruction that I should remain at my post till May 2010.

Tricontinental tradition

To underscore the filiation between the Sri Lankan victory and the great tradition of Global South diplomacy as showcased by the triple digit against single digit (165-to-7) victory of Cuba over the Trump administration in New York last week, let me conclude with something I wrote which was originally featured on the Cuban Foreign Ministry (MinRex) website marking the death of one of its great diplomatic gurus and strategists Prof Miguel Alfonso Martinez. (http://www.cubadebate.cu/especiales/2010/02/12/recordando-a-miguel-alfonso/)

‘.Miguel was a trainer of gladiators.in the world arena. He had taught generations of Cuban diplomats who represent their country superbly throughout the world, combining idealism, tireless energy and professionalism. An Emeritus Professor of International Law, expert in the UN and human rights, he was a legend at the Higher Institute for International Relations, Cuba’s premier diplomatic training academy. Miguel was one of those instrumental in crafting in the 1990s, one of Cuba’s biggest diplomatic operations; a strategic gamble which has reaped rich political dividends each year. This is the UN General Assembly vote, where ever-growing triple digit majorities take a stand against the US economic blockade (or ’embargo’).

Though he couldn’t be in Geneva during the UN Human Rights Council’s 11th Special Session on Sri Lanka, Miguel followed it keenly and anxiously from Havana, keeping in touch with me, Cuba’s UN-Geneva ambassador Juan Antonio and Sri Lanka’s ambassador Kunanayakam in Havana. Later, when it was all over, Juan Antonio, our partner and ally in the struggle, came up to me in the splendid assembly hall with a message he’d received from Miguel who thought the successful Sri Lankan fight-back, mobilizing the Non-aligned and its friends against formidable opponents, was something he would like to convert into a teaching module. He regarded it as a model of tactics.’ (http://www.srilankaguardian.org/2010/02/memories-of-miguel.html)

That recognition accorded by Prof Miguel Alfonso who had worked with Fidel and Che, was maestro sensei of the Jedi knights of Cuban diplomacy, and Chairperson of the UN Human Rights Council Advisory Committee (2008), was a measure of our unambiguous diplomatic victory in 2009 and the value of its contribution to the Global South’s diplomacy of independence and emancipation.

HNB PLC has joined hands with The Management Club (TMC) as the Principal Sponsor and Official Banking Partner of the Northern Investment Summit 2026 (NIS26). The initiative, set to take place in Jaffna in January, is aimed at accelerating investment, entrepreneurship, and inclusive economic growth in the Northern Province.

HNB Managing Director and Chief Executive Officer Damith Pallewatte highlighted the bank’s proud presence in Jaffna for over 53 years and its legacy of more than 135 years in Sri Lanka. He emphasised that HNB upholds its leadership in empowering enterprise and nurturing sustainability. Pallewatte further noted that savings entrusted to HNB in the Northern Province have reached approximately Rs. 130 billion, while the bank’s lending portfolio now stands at around Rs. 60 billion. He added that repayment performance in the region remains strong, reflecting the discipline and resilience of local entrepreneurs.

‘The Northern Province is emerging as one of the most promising frontiers of growth in Sri Lanka. Encouraging regional development and prosperity is central to securing the country’s long-term recovery. In recent years, the North has evolved into a hub for enterprise, renewable energy, and value-added agriculture, supported by strong public-private partnerships,’ Pallewatte said.

He added that HNB views financial inclusion as the bridge between national policy and real economic opportunity. ‘By expanding access to capital and empowering entrepreneurs, we aim to ensure that the North’s growth story contributes to a more balanced and resilient national economy,’ he stated.

Through its involvement at NIS26, HNB will collaborate with Government agencies, investors, and development partners to promote entrepreneurship, investment readiness, and sustainable regional development. The summit will bring together senior policymakers, diplomats, and business leaders for policy dialogues, project showcases, and partnership discussions. It will also see the launch of the Northern Investment Opportunities Report, a comprehensive guide to projects aimed at attracting both domestic and foreign investment.

The partnership highlights HNB’s ongoing commitment to expanding financial access and promoting equitable growth across Sri Lanka. Through inclusive and transformative financial solutions, HNB remains dedicated to driving sustainable national development and uplifting communities island-wide.

Taxation serves as one of the most powerful tools in shaping a nation’s economic destiny. Its purpose extends far beyond merely filling State coffers. A sound and just tax system is meant to foster economic growth, promote social equity, ensure fair distribution of wealth, and protect domestic industries from unfair foreign competition and dumping.

However, when tax laws are misinterpreted, selectively applied, or exploited by powerful interests, the very objectives of taxation are defeated. Instead of promoting fairness and growth, the system begins to stifle local industries – slowly but silently killing the very enterprises that sustain employment, innovation, and national resilience.

Abuse of tax laws by multinational companies

In recent years, several multinational companies have increasingly taken advantage of loopholes in Sri Lanka’s tax laws to minimise or even avoid paying taxes. Armed with global expertise and vast financial resources, they employ high-profile tax consultants and auditors – spending hundreds of millions to save billions in potential tax liabilities.

When tax authorities fail to effectively detect or curb such practices, the outcome is devastating for local competitors. Domestic enterprises, already struggling with limited access to finance, high production costs, and regulatory burdens, are forced to compete on an uneven playing field. Over time, many are pushed to the brink of closure or compelled to relocate to more equitable tax jurisdictions.

A case in point

A striking example can be found in the digital service sector, where both local and foreign companies operate platforms that connect drivers with customers for ‘Rides’ and ‘Eats.’ While the locally incorporated entity dutifully pays all due taxes, including Corporate Income Tax (CIT), its foreign counterpart – operating in Sri Lanka through a dependent agent – reportedly manages to evade similar obligations.

This disparity not only deprives the Government of substantial revenue but also discourages entrepreneurship, deters compliant foreign direct investors, and erodes public confidence in the fairness of the tax system.

Tax liability of non-resident companies

Globally, it is a well-established principle that a country may tax a person – whether resident or non-resident – only if that person derives income from a source within that jurisdiction or is considered resident therein.

Sri Lanka’s Inland Revenue Act, No. 24 of 2017 (IR Act) is clear on this matter. Sections 6(2)(a)(h), 72(1)(b), and 73(m)(ii)(iib) explicitly impose tax liability on non-residents who earn profits through a source in Sri Lanka.

While Double Tax Avoidance Agreements (DTAAs) override domestic law in cases of inconsistency, both the IR Act and the relevant DTAAs consistently affirm that non-resident entities carrying on business in Sri Lanka through a Permanent Establishment (PE) are liable to tax on profits attributable to that establishment.

Article 7(1) of the DTAA provides:

‘The profits of an enterprise of one of the States shall be taxable only in that State unless the enterprise carries on business in the other State through a permanent establishment situated therein…’

Further, Article 5(5) of the DTAA defines a PE to include a dependent agent of a non-resident person. In fact, the Inland Revenue Department (IRD) has already established, through a VAT assessment on digital service providers in the ‘Rides’ and ‘Eats’ sector, which such entities operate in Sri Lanka through dependent agents – making them liable for taxation under both domestic and treaty law.

It is therefore evident that there exists no inconsistency between the IR Act and the DTAA. Both confirm the tax liability of such non-resident enterprises.

Desperate attempt to register under the new VAT Amendment Act

It was made to understand that certain non-resident companies conducting online business activities through their dependent agents have been attempting to register under the provisions of the Value Added Tax (Amendment) Act, No. 04 of 2025. These provisions pertain to the registration of non-resident entities that carry on business in Sri Lanka without maintaining a permanent establishment (PE) or agency within the country.

It should be noted that non-resident companies operating in Sri Lanka through electronic platforms, without a permanent establishment, are not liable to pay income tax on the profits derived from such activities.

Just the tip of the iceberg

If Sri Lanka’s tax administration were more proactive and consistent in enforcing the law, billions of rupees in lost revenue could have been recovered. The issue extends far beyond the ‘Rides’ and ‘Eats’ companies – encompassing numerous non-resident digital and service providers in the fields of tourism, hotel booking, and e-commerce.

These entities often exploit ambiguities and loopholes in the tax system to evade their rightful obligations, leaving domestic competitors disadvantaged and the state deprived of due revenue.

By ensuring proper taxation of such non-resident companies, Sri Lanka can not only strengthen its fiscal position but also uphold fairness, integrity, and competitiveness across all sectors of the economy.

Towards a fair and protective tax regime

It is imperative that Sri Lanka’s tax authorities enhance their capacity, expertise, and technological tools to identify and counteract sophisticated tax avoidance practices. Taxation must once again serve its true purpose – to promote equity, fairness, and national growth.

A reformed and well-enforced tax regime can level the playing field for all taxpayers, protect local industries, attract responsible foreign investment, and restore public faith in the integrity of the system.

Only then can taxation cease to be a silent killer – and instead become the protector and promoter of Sri Lanka’s economic future.

The Second Session of the Joint Commission between Sri Lanka and the United Arab Emirates (UAE) was successfully concluded in Colombo on 4 November.

The Session was co-chaired by Deputy Minister of Foreign Affairs and Foreign Employment of Sri Lanka Arun Hemachandra, and Minister of State at the Ministry of Foreign Affairs of the United Arab Emirates Saeed bin Mubarak Al Hajeri.

In his opening remarks, Deputy Minister Hemachandra underscored that the establishment of the Sri Lanka-UAE Joint Commission marks a significant milestone in the partnership between the two countries. He emphasised that the mechanism serves as an effective platform for advancing comprehensive cooperation both at the bilateral level and within international fora. The Deputy Minister further noted that, although the First Session of the Joint Commission was held in Abu Dhabi in 2014, bilateral relations between Sri Lanka and the UAE have continued to strengthen, underpinned by close collaboration across multiple sectors.

The discussions during the Second Session provided a valuable opportunity to review ongoing cooperation and explore new avenues in key areas such as trade, investment, labour, and other fields of mutual interest. Deputy Minister Hemachandra highlighted the importance of further consolidating economic and trade relations, noting that the two countries had, during the year, concluded two landmark agreements – the Agreement on the Promotion and Protection of Investments (IPPA) and the Memorandum of Understanding on the Establishment of the UAE-Sri Lanka Joint Business Council.

The UAE State Minister welcomed the elevation of the bilateral relationship in the past few months and expressed keen interest in focusing on enhanced trade and tourism cooperation including infrastructure development targeting high end tourism from UAE. He conveyed willingness to further step up cooperation in energy, investments, financial services and textiles, and noted the importance of economic cooperation diversification.

At the conclusion of the deliberations, the Co-Chairs signed the Agreed Minutes of the Second Session. The discussions encompassed a wide range of areas of cooperation, including political, economic, financial, transport, sports, health, customs, energy, labour, defence, science and technology, education, culture, agriculture, food, and postal sectors.

During their stay, State Minister Saeed bin Mubarak Al Hajeri and the accompanying delegation also paid courtesy calls on Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath and Minister of Ports and Civil Aviation Anura Karunathilaka.

The UAE delegation comprised of Ambassador of the United Arab Emirates to Sri Lanka Khaled Al Ameri, the Director of the Asian and Pacific Affairs Department of the Ministry of Foreign Affairs of the UAE Abdulaziz Al Neyadi, and senior officials representing the UAE Ministry of Foreign Affairs, Dubai Chambers, Etihad Airways, AD Ports, and other agencies.

The Sri Lankan delegation included Secretary to the Ministry of Foreign Affairs, Foreign Employment and Tourism Aruni Ranaraja, senior officials from the Ministry, and other relevant Government institutions and agencies.

The convening of the Sri Lanka-UAE Joint Commission after 11 years is reflective of the strengthening of bilateral relations between the two countries, following on the recent high-level visits.

The Third Session of the Sri Lanka-UAE Joint Commission is scheduled to be held in Abu Dhabi.

AIA Group Ltd., has announced 25% growth in value of new business (VONB) on constant exchange rates (CER) for the third quarter ended 30 September 2025.

VONB was up 25% to $1,476 million, a record for the third quarter. VONB margin of 58.2%, was up by 5.7 pps. AIA said there was broad-based double-digit VONB growth in Hong Kong, Mainland China, ASEAN and India. The Agency VONB growth of 19% with very strong recruitment up 18%.

AIA’s Group Chief Executive and President Lee Yuan Siong said: ‘AIA’s continued strong execution of our growth strategy has delivered another excellent quarter as we capture the unparalleled opportunities in life and health insurance markets across Asia. In the third quarter of 2025, we grew VONB by 25% compared with the same period last year and we achieved double-digit growth in 11 markets.’

‘Our unrivalled distribution platform is a key competitive advantage and both our Premier Agency and partnership distribution channels generated very strong growth during the quarter. I am confident that the continued compounding of high-quality new business will grow our in-force portfolio and drive higher earnings and cash generation for many years to come.’

AIA also said VONB saw double-digit increases from 11 of 18 markets.

AIA’s key distribution channel, industry-leading Premier Agency, achieved 19% growth and generated over 70% of the Group’s VONB. Strong recruitment momentum continued, with 18% growth in new recruits, supporting a further increase in the number of active agents. The fast-growing and complementary partnership distribution channel saw a 46% increase in VONB, driven by an excellent performance from the independent financial adviser (IFA) and broker channel in Hong Kong and our bancassurance businesses.

In aggregate, the ASEAN markets delivered 15% higher VONB, supported by double-digit growth from both agency and partnership channels.

Other Markets segment’s VONB was the same level as last year, with double-digit growth from South Korea, Vietnam and India offset by a decline in Australia and Taiwan (China). Tata AIA Life, continued to deliver excellent VONB growth across all distribution channels and maintained its number one industry ranking in retail protection in the third quarter of 2025(13).

Overall, VONB for the Group was up by 25% to US$1,476 million. Annualised new premiums (ANP) grew by 14% to US$2,550 million, while VONB margin increased by 5.7 pps to 58.2%, due to a favourable shift in product mix. Margin reported on a present value of new business premium (PVNBP) basis increased from 10% to 11%, while total weighted premium income (TWPI) increased by 14% to US$11,910 million.

New business contractual service margin (NB CSM) for the third quarter of 2025 increased by over 25%. ‘Successive layers of profitable new business add to our substantial, recurring earnings from in-force business, reinforcing our confidence in delivering our operating profit after tax (OPAT) per share CAGR target of 9 to 11% from 2023 to 2026,’ Lee said.

There is a silence that follows tragedy-a phone call in the night, a trembling voice, a parent who will never be whole again. A needle, a pill, a decision made in darkness. In that moment, the world seems unbearably indifferent. Yet indifference is never neutral-it is the shadow in which evil thrives.

Trump’s war against the unseen empires of crime begins from that silence. He does not fight abstractions; he strikes at the machinery that devours human lives. Beneath the fragile order of nations lies a darker economy-one that trades not only in drugs and weapons but in despair.

I have spent years among those who study this hidden order-at the Economic Crime Symposium at Cambridge University-where minds from Interpol, law enforcement, and academia gather to trace the anatomy of global corruption. For 42 years, this symposium has built a vast body of knowledge, layer upon layer, each generation adding its colour to the same unfinished canvas. Those before me witnessed what I now confront in altered form; those who follow will craft better defences against it. Its founder, Professor Barry Rider, foresaw the many shades through which economic crime would evolve-how it would infiltrate nations, institutions, and lives. And through these decades, one truth has become inescapable: economic crime and geopolitics are not separate realms but two faces of a single system. Rogue regimes stretch their reach across borders, funding corruption, capturing elites, and manufacturing chaos as strategy.

Compass for a disoriented world

In Washington, at the height of this disorder, the Economic Crime and Geopolitics Index (ECGI) was born-a compass for a disoriented world. Since then, nations such as the Philippines, Thailand, Sri Lanka, and Myanmar have begun to look within. In Manila, $ 20 billion has vanished into ghost projects. In Myanmar, digital scam centres and in Thailand, the Chinese gambling networks and spread like a second state, undermining the first.

It is within this same underworld that America’s own tragedy takes root. More than 80,000 Americans died from drug overdoses last year-sons and daughters whose futures dissolved in a chemical haze. Trump calls this not a crime, but a war. And in war, he believes, clarity must replace hesitation. Seven boats were struck off Venezuela’s coast. Thirty-two traffickers perished. Their deaths will not bring back the dead, but their survival would have killed thousands more.

At the United Nations, Trump spoke without ornament: ‘To every terrorist thug smuggling poisonous drugs into the United States, be warned-we will blow you out of existence.’ It was not cruelty, but an assertion of moral gravity-a declaration that the state must defend the living from the merchants of death.

In Sri Lanka, I met the deputy minister of public security Sunil Watagala -a man waging his own battle against the networks that rot the foundations of the State. President Anura Kumara Disanayake has declared his war on crime with an old truth reborn: ‘This country cannot have two States. There can only be one-the legitimate State built by the democratic power of the people. The black State must be dismantled.’

Criminal networks have infiltrated politics

His warning is stark. Criminal networks have infiltrated politics, hiding behind local councils and parliamentary campaigns. Seventy-three T-56 rifles from a military camp have been traced to these groups. The ECGI now places Sri Lanka at a risk level of 74.2-a grave position among South Asian nations, surpassed by only a few in vulnerability to economic crime. If this trend endures, the island’s stability may not. Yet, in the President’s defiance, one hears the faint pulse of recovery-a nation trying to reclaim its spine.

In 2012, I was invited to witness the Mexican campaign launched by President Felipe Calderón. I recall how he spoke with quiet conviction about the darkness entrenched in his own society. It was his final year in office, and his war on cartels had revealed how deeply organised crime could infiltrate the core of a nation.

Years later in Sri Lanka, after the Easter Sunday bombing, a former president-still grappling with the tragedy-asked me, while I was at defence research, ‘Is there a connection between my anti-drug operation and the bombing?’ I did not believe there was any. Yet the question itself revealed a deeper truth: when criminal networks operate with vast resources and impunity, even leaders can feel the state slipping beyond their control.

These networks often wield budgets greater than the poorer states they undermine, spreading influence through politics, business, and blood. The faces change, but the struggle remains the same: a state at war with its reflection. Sri Lanka’s challenge today echoes that enduring lesson.

Far across the ocean, the Caribbean hums with movement. Ten thousand American troops have been redeployed; eight warships and a submarine circle near Puerto Rico. To some, this is provocation. To history, it may be preparation. Venezuela’s hybrid regime-a nexus of cartels, corruption, and foreign patrons-is being challenged where it breathes.

Where profit and power merge into one

Trump’s campaign is not military alone; it is existential. It rejects the quiet surrender to forces that deform democracy from within. Economic crime, he insists, is the skeleton key to tyranny. Dictatorships-whether in Caracas, Beijing, or Pyongyang-feed on these invisible transactions, where profit and power merge into one.

From the jungles of Shan State to the streets of Bogotá, the same architecture persists-drug lords, arms smugglers, human traffickers, and cyber syndicates, all protected by regimes that trade sovereignty for survival. To confront them is not merely to enforce law; it is to resist the decay of civilisation itself.

Trump now turns to Asia. In Malaysia, at the ASEAN Summit, Foreign Minister Mohamad Hasan spoke of regional efforts to confront transnational crime and strengthen extradition treaties. It is an acknowledgment that corruption has become a global language-and that nations must answer it in chorus.

Trump’s courage lies not in perfection, but in refusal-to look away, to soften what must be said, to call evil by another name. Bureaucrats will argue. Criminals will not. They understand only fear, and Trump, unrefined but unflinching, speaks that dialect.

Every missile fired at sea carries a cost. Leadership is often a form of solitude-a burden carried without applause. Yet the measure of courage is not in popularity but in the willingness to confront the abyss and not retreat.

When a cartel falls, when a shipment is seized, we see only numbers. But behind each act lies something quieter-a father’s vow that no other child will be lost to the same silence. In that sense, every strike is not vengeance but remembrance.

To lead in an age of shadows is to act without certainty, to strike not for glory but for the unseen redemption of others. History will debate his methods; time will remember his intent. For those who have buried their children, Trump’s war against the architects of addiction may be the first gesture of justice in a long time.

Colombo Dockyard PLC (CDPLC), has secured another repeat vessels contract to build two Cable Laying and Repair Vessels to one the prestigious cable ship operators, Orange Marine.

Incidentally this is the largest shipbuilding contract CDPLC has ever signed in the history of the Company.

Orange Marine is a French company specialising in the field of submarine telecommunications, from the initial design, engineering, to installation of intercontinental and regional links, and maintenance of existing cables. The Orange Marine’s fleet is one of the most experienced in the world and represents 12% of the world cableships fleet.

The contract signing was held in Colombo recently and Orange Marine President/CEO Didier Dillard signed the contracts in the presence of Ships Technical Director – Med Marine Base Director Emmanuel Décugis. Also Ambassador Rémi Lambert, Deputy Head of Mission Matthieu John, and Embassy of France Economic Counsellor Philippe Fouet, were present to give their blessings to the project.

MD/CEO Thimira S. Godakumbura signed the contracts on behalf of the CDPLC in the presence of Director/CFO Gihan Ravinatha and the senior management team of Colombo Dockyard.

The proposed two vessels shall be ultra-modern, high technology vessels similar to the Sophie Germain built and delivered by CDPLC back in July 2023. These vessels are specially designed and equipped for sub-sea cable lay and repair operation duties with a high focus on good sea keeping qualities, excellent station keeping performance and low fuel consumption.

The vessels have been designed by Vard Design AS of Norway and an optimised hull form and bow shape developed by Vard has been incorporated in the design, enabling the vessel to achieve high speeds and minimise its carbon footprints, to be a highly eco-friendly vessel.

These vessels shall be built to Bureau Veritas classification society standards and shall meet the regulatory requirements of the French Flag Authority. The vessels environmental friendliness with focus on low fuel consumption shall be in accordance with BV CLEANSHIP requirements.

The vessel’s primary activities shall be to carry out cable operations, including laying, repair and ROV inspection. The vessel is 100 m in length with a beam of 18.8 m and a Depth of 7.15 m and shall have a deadweight capacity of 1800DWT. The vessel can achieve an impressive speed of 14.5 knots and has accommodation facilities for 76 persons. The vessel has three cable tanks to carry fibre optic cables.

The vessel shall be fitted out with a diesel-electric propulsion plant. The power plant shall consist of four generator sets for electrical propulsion power. The vessels propulsion shall be by two main Azipod propellers in the aft and two tunnel thrusters in the forward and the system will be run and monitored by Integrated Automation System and Power Management System.

It will be worth recording that in 2019, CDPLC successfully built and delivered a 113 m Cable Laying Vessel ‘KDDI Cable Infinity’ to Japan and in 2023 the 100 m Cable Laying and Repair Vessel ‘Sophie Germain’ to France. Now CDPLC is carving out a name for itself as a reputed, reliable and trustworthy Shipbuilder for Cable Laying and Repair Vessel in the world.

With this it marks Colombo Dockyards stamping of presence into the prestigious European market establishing Colombo as a preferred Shipbuilding destination for European Ship Owners.

CDPLC continuously proves its excellence through successful securing and execution of shipbuilding projects worldwide and is the front runner of Sri Lankan industrialisation.

CDPLC contributes heavily to the National Export earnings from the Shipbuilding sector with much needed foreign currency to the Sri Lankan economy and plays a leading role of uplifting and driving the maritime development strategy of Sri Lanka.