Category: Daily Financial Times

Representing a dismal assessment, the World Bank in its recent Sri Lanka Public Finance Review report had observed that the island’s public sector employees earn less than their peers in the private sector as well as counterparts in comparable economies. Furthermore, as per the report, the public sector workforce is higher than that of similar countries and the Bank had opined the bloated workforce needs to be trimmed gradually through proper planning and well-targeted attrition strategies.

Sri Lanka perhaps had one of the finest and impressive public/civil services in the Asian region during the bygone era. Sadly, the deterioration and decay of the country’s public sector is quite gut-wrenching apart from being distressing. Even career Central Bank officials, a minority of semi-government employees who enjoy highly lucrative remuneration benefits, have been disgraced for their unprofessional and unworthy conducts in certain instances. Prominent special grade Sri Lanka Administrative Service (SLAS) officers have been jailed and remanded quite regularly by the courts in the recent past, reflecting the considerable erosion of the nation’s public service.

The descent of the public service began with the abolition of the Ceylon Civil Service (CCS), which was the premier public service under British colonial rule and during the early post-independence era, in 1963. Modelled after the British Civil Service, the CCS was known for its high standards and professionalism. Impressive and erudite CCS officers like Ronnie de Mel, Bradman Weerakoon, and Nissanka Wijeyeratne were considered as colossal figures, and none of the contemporary SLAS officers can come even close to their grace and stature. The examination to join the CCS was considered extremely tough and rigorous, with only a small number of candidates chosen from a very large pool of applicants. The prestigious service attracted aspirants hailing from respectable family backgrounds who were educated from the best schools in the country.

In contrast, the SLAS – the successor to the CCS – is quite broad, with about over 2,500 officials, and the service is manned by individuals from the middle class with even top SLAS officials not having the capacity to converse in English language. Today, the public service is no longer perceived as a career path by the ambitious and academically brightest young individuals in the country. At the time of gaining independence, there were quite a number of educated Tamils holding prominent positions in State organisations. However, with the Governments in the South exercising racial prejudice against the minority community systematically over the years in addition to the escalation of the civil war, many of them left the shores, thus, contributing towards the degeneration of the public service.

According to the World Bank publication, in cumulative real terms, average public sector wages and pensions decreased by 33% and 26% from 2020 to 2023. The international development agency also states that government wages are least competitive for highly skilled workers, as they earn 8% to 22% less than private sector peers. Such gross under remuneration contributes towards apathy and dissatisfaction among government employees, resulting in low productivity.

Due to the fiscal constraints, the Government’s ability to spend on the training and development needs of workers has been severely constrained. On the other hand, top companies in the private sector place a special emphasis on the capacity development of junior and middle-level employees to foster their career progression. Although individuals in the private sector can progress through the career ladder rapidly, employees in departments and statutory boards have to spend a considerable amount of time to gain promotions, which further aggravates their frustration.

Going forward, policymakers should strive to develop a leaner and meaner public service through meticulous human resources planning. A smaller public sector with excellent financial and non-financial benefits which attracts competent and talented individuals would boost the progress of the nation.

Representing a dismal assessment, the World Bank in its recent Sri Lanka Public Finance Review report had observed that the island’s public sector employees earn less than their peers in the private sector as well as counterparts in comparable economies. Furthermore, as per the report, the public sector workforce is higher than that of similar countries and the Bank had opined the bloated workforce needs to be trimmed gradually through proper planning and well-targeted attrition strategies.

Sri Lanka perhaps had one of the finest and impressive public/civil services in the Asian region during the bygone era. Sadly, the deterioration and decay of the country’s public sector is quite gut-wrenching apart from being distressing. Even career Central Bank officials, a minority of semi-government employees who enjoy highly lucrative remuneration benefits, have been disgraced for their unprofessional and unworthy conducts in certain instances. Prominent special grade Sri Lanka Administrative Service (SLAS) officers have been jailed and remanded quite regularly by the courts in the recent past, reflecting the considerable erosion of the nation’s public service.

The descent of the public service began with the abolition of the Ceylon Civil Service (CCS), which was the premier public service under British colonial rule and during the early post-independence era, in 1963. Modelled after the British Civil Service, the CCS was known for its high standards and professionalism. Impressive and erudite CCS officers like Ronnie de Mel, Bradman Weerakoon, and Nissanka Wijeyeratne were considered as colossal figures, and none of the contemporary SLAS officers can come even close to their grace and stature. The examination to join the CCS was considered extremely tough and rigorous, with only a small number of candidates chosen from a very large pool of applicants. The prestigious service attracted aspirants hailing from respectable family backgrounds who were educated from the best schools in the country.

In contrast, the SLAS – the successor to the CCS – is quite broad, with about over 2,500 officials, and the service is manned by individuals from the middle class with even top SLAS officials not having the capacity to converse in English language. Today, the public service is no longer perceived as a career path by the ambitious and academically brightest young individuals in the country. At the time of gaining independence, there were quite a number of educated Tamils holding prominent positions in State organisations. However, with the Governments in the South exercising racial prejudice against the minority community systematically over the years in addition to the escalation of the civil war, many of them left the shores, thus, contributing towards the degeneration of the public service.

According to the World Bank publication, in cumulative real terms, average public sector wages and pensions decreased by 33% and 26% from 2020 to 2023. The international development agency also states that government wages are least competitive for highly skilled workers, as they earn 8% to 22% less than private sector peers. Such gross under remuneration contributes towards apathy and dissatisfaction among government employees, resulting in low productivity.

Due to the fiscal constraints, the Government’s ability to spend on the training and development needs of workers has been severely constrained. On the other hand, top companies in the private sector place a special emphasis on the capacity development of junior and middle-level employees to foster their career progression. Although individuals in the private sector can progress through the career ladder rapidly, employees in departments and statutory boards have to spend a considerable amount of time to gain promotions, which further aggravates their frustration.

Going forward, policymakers should strive to develop a leaner and meaner public service through meticulous human resources planning. A smaller public sector with excellent financial and non-financial benefits which attracts competent and talented individuals would boost the progress of the nation.

The England Women’s Cricket Team joined young girls from 12 districts on Sunday, 12 October for an outreach event at the Sinhalese Sports Club in Colombo. The program organised by Child Action Lanka and the British High Commission showcased the transformative power of sport to empower girls and strengthen communities whilst highlighting the enduring ties between the UK and Sri Lanka.

The England Women’s cricket squad spent time with the girls from while they were in Sri Lanka for their fixtures in the Women’s Cricket World Cup currently being held in India and Sri Lanka. During the program, England players spent time with girls from Child Action Lanka’s island-wide network through net sessions and mini-games, sharing skills, stories and encouragement. The event underscored the UK’s commitment to diversity and inclusion in sport whilst showcasing Child Action Lanka’s vital work creating opportunities for vulnerable children across Sri Lanka.

England Women’s Team Danni Wyatt-Hodge said: ‘We’re delighted to be in Sri Lanka not just to compete, but to connect with young people who share our passion for cricket.

Sport has the power to give every girl the confidence to dream big, and we hope today shows that those dreams are absolutely within reach.’

Child Action Lanka Founder and Director Debbie Edirisinghe said: ‘We are thrilled to welcome the England Women’s Cricket Team to meet our girls. Sport is such a powerful tool for building confidence and life skills in vulnerable young people. This event demonstrates how cricket can bring communities together and inspire our girls to believe in their potential, both on and off the field.’

The program supports the launch of Child Action Lanka’s ‘She Plays’ project, which will enable young girls from rural Sri Lanka to pursue their athletic dreams through access to training and support, empowering them to grow in confidence, skill and ambition.

The outreach event reinforces the UK and Sri Lanka’s shared commitment to promoting women’s sport and ensuring every girl has the opportunity to participate and succeed, regardless of background or circumstances.

Sri Lanka Esports was represented at the New Global Sport Conference (NGSC) 2025 in Riyadh by its President, Raveen Wijayatilake, where the Esports Nations Cup (ENC) was officially announced, marking a landmark moment for the future of Esports globally.

The NGSC brought together global leaders in sport, gaming and Esports to discuss the future of competition and collaboration. The reveal of the Esports Nations Cup introduced a recurring nation-versus-nation tournament where players will represent their countries on the world stage, elevating Esports to new heights of recognition and legitimacy. The first edition of the tournament will take place in 2026, creating an opportunity for countries such as Sri Lanka to showcase their best Esports athletes at the highest level of competition.

‘Being present at NGSC for the announcement of the Esports Nations Cup was a powerful reminder that Esports is no longer a niche pursuit, but a global movement. For Sri Lanka, this means that our players will have the opportunity to compete under their national flag, to gain international exposure and to inspire the next generation of Esports athletes,’ said Sri Lanka Esports Association (SLESA) President Raveen Wijayatilake.

The presence of Sri Lanka in conversations of this scale underscores the nation’s growing stature within the global Esports community. With Esports now recognised as an official sport locally, SLESA is committed to building pathways for Sri Lankan athletes to take part in international events, while continuing to nurture grassroots growth at home.

Dialog Axiata is the sponsor of the National Esports, Cricket, Volleyball and Netball teams. Dialog is also the primary sponsor of the Sri Lanka Golf Open and Paralympic sports by powering the National Para Games, and the Sri Lankan contingent to the World Paralympic Games. Further, in line with its commitment towards powering the champions of tomorrow, the company continues to power the National Junior and Senior Netball tourneys and School Rugby. Gamer.LK, video games and Esports company, serves as the Strategic Partner for SLESA.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday said the Cabinet has approved a proposal by President Anura Kumara Disanayake to instruct the Legal Draftsman to prepare amendments to the Colombo Port City Economic Commission Act, No. 11 of 2021.

He said the revisions are aimed at addressing regulatory gaps and investor concerns following the repeal of Port City’s strategic business regulations on 4 August. Those regulations had previously granted key incentives and exemptions to investors.

Colombo Port City, established as a special economic region under the 2021 Act, is intended to position Sri Lanka as a competitive international business hub. The Colombo Port City Economic Commission has identified additional legal changes required to strengthen the region’s competitiveness, attract foreign direct investment, and improve Sri Lanka’s global ease-of-doing-business rankings.

The proposed amendments follow an earlier Cabinet decision in July 2024 to update the existing law. The new measures are expected to provide direct solutions to issues faced by investors and restore confidence by clarifying the incentive framework within Port City’s regulatory environment.

Ananda College has announced the appointment of Anuranga Walpola as their Head Coach of their 1st XV rugby team for the 2026 season.

Walpola played for Isipathana and later at CR and FC and Kandy SC clubs representing the national youth and senior teams for number of years before taking up coaching. His last assignment was at S. Thomas’ College Mount Lavinia.

Supporting Walpola will be an experienced and well-balanced coaching panel that includes former Kingswoodian kicking sensation, Dev Anand as Assistant Coach (Backs), Dinesh Kumara handling Backs and Strength and Conditioning while Prashanth Hettiarachchi as Assistant Coach (Forwards).

The Central Bank of Sri Lanka (CBSL) remained a net purchaser of foreign exchange from the domestic forex market during the first eight months of 2025, continuing the positive trend seen in 2023 and 2024, according to the Financial Stability Review 2025 released last week.

From January to August 2025, the CBSL absorbed $ 1.3 billion from the domestic forex market and injected $ 63.3 million, resulting in a net absorption of $ 1.24 billion. This compares with $ 2 billion recorded during the corresponding period in 2024.

Gross Official Reserves stood at $ 6,164.2 million at the end of August 2025, slightly above the $ 6,122.0 million reported at the end of 2024.

The report noted that this accumulation occurred despite rising import demand and ongoing external debt servicing by the Government and the CBSL.

‘To sustain this positive trend amidst increasing import demand, scheduled repayment of external Government debt, and the CBSL’s foreign currency obligations, consistent foreign currency inflows will be essential,’ the report stated.

The review said liquidity conditions in the domestic forex market improved, reflected by a narrowing bid-ask spread for the USD/LKR rate.

This downward momentum continued from 2024, indicating reduced volatility and lower transaction costs. A temporary widening of the spread in April 2025 was attributed to market uncertainty following the announcement of reciprocal tariffs on Sri Lankan imports by the US and seasonal import-related pressures during the festival period.

The CBSL noted that maintaining improved liquidity through stronger export earnings, tourism receipts, and workers’ remittances will be critical for sustaining confidence and attracting foreign investment.

Interbank foreign exchange transaction volumes also strengthened during the review period. In January 2025, the market recorded the highest monthly volume since October 2020, reaching $ 1,668 million, and later increased to $ 1,722.9 million in August 2025. The surge early in the year was likely due to the anticipated resumption of vehicle imports and hedging activities amid expectations of increased demand for foreign exchange, the CBSL said.

Forward transactions rose 22% compared to the same period in 2024, reaching $ 622 million in August, or 36.1% of total transactions for the month.

Spot transactions increased by 19%, TOM transactions by 39%, and cash transactions by 85%, reflecting stronger liquidity needs at various points during the year.

The one-month forward premium continued its declining trend from 2024, indicating stable expectations in the forex market.

The secondary Bond market yesterday witnessed healthy overall activity, despite being characterised by prolonged periods of inactivity interspersed with sporadic bursts of trading.

This marked a stark departure from the virtual standstill seen the day before. Transaction volumes were at robust levels, with sizeable block trades executed during the active periods.

Yields held broadly steady across most of the curve as the market continued to consolidate, keeping rates anchored around prevailing levels. The exception was the 2028 tenors, which saw yields creep upwards.

In terms of the secondary Bond market trade summary, 01.08.26 maturity was seen trading at the rate of 8.35%-8.30%. The 15.02.28, 01.05.28 and 01.07.28 maturities were seen trading at the rates of 9.10%, 9.20% and 9.25% respectively.

The 15.10.28 and 15.12.28 maturities were both seen trading at the rate of 9.30%. The 15.06.29, 15.10.29 and 15.12.29 maturities were seen trading at the rates of 9.65%, 9.70%-9.68% and 9.70% respectively. The 01.07.30 maturity was seen trading down the range of 9.80% to 9.78%.

The 01.06.33 and the 01.11.33 maturity were seen trading at the rates of 10.70% and 10.72% respectively.

In Secondary market Bills, trades were observed on March

2026 maturities at the rates of 8.00%-7.95%.

Meanwhile, the Treasury Bills auction scheduled to be conducted today will have a total offered amount of Rs. 77.5 billion, an increase of Rs. 44 billion over the previous week. The auction will consist of Rs. 15 billion on the 91-day, Rs. 35 billion on the 182-day and Rs. 27.50 billion on the 364-day maturities.

For context, at the previous weekly Treasury Bill auction (08th October), the weighted average rates held largely steady, with the exception of the 91-day maturity which registered a further drop of 01-basis point.

The 182-day and 364-day tenors remained unchanged at 7.89% and 8.02% respectively.

This marks the 12th week where T-Bill rates have stayed broadly anchored around prevailing levels. Nevertheless, the auction went undersubscribed. Only 57.10% or Rs 19.13 billion out of the Rs 33.50 billion targeted offered amount was raised. This was despite the bids received to offered amount ratio standing at 1.59 times

The total secondary market Treasury Bond/Bill transacted volume for 13 October was Rs. 37 billion.

In money markets, the net liquidity surplus was recorded at Rs. 171.02 billion yesterday. An amount of Rs. 179.46 billion was deposited at Central Banks SDFR (Standing Deposit Facility Rate) of 7.25%, while an amount of Rs. 8.44 billion was withdrawn from the Central Banks SLFR (Standard Lending Facility Rate) of 7.25%.

The weighted average rates on Call money and Repo were registered at 7.87% and 7.89% respectively.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating to Rs. 302.80/302.90 as against Rs. 302.59/302.62 the previous day.

The total USD/LKR traded volume for 13th October was US $ 67.31 million.

Hemas Pharmaceuticals Ltd., a subsidiary under Hemas Holdings PLC, recently announced the arrival of its latest hair care product with the launch of Hair Buddy. Developed in partnership with Oproma Cosmetics Ltd., as a botanical fusion hair masque, Hair Buddy marks a milestone for Hemas Pharmaceuticals as its first-ever direct-to-consumer, digital-first launch.

NMRA approved and dermatologically tested, and 100% BPA free, Hair Buddy works rapidly to deliver visible growth. Designed to be a ‘forever friend’, Hair Buddy works to prevent hair loss, reduce dandruff, and strengthen hair from root to tip. Hair Buddy is uniquely positioned to build long-term scalp health through deep nourishment. Recommended for ages 16 and above, Hair Buddy’s ‘forever friend’ factor stems from its status as a safe, inclusive, and effective hair growth partner developed from time-tested Sri Lankan traditions based on plant powered formulas.

Hair Buddy’s launch aligns with Hemas Pharmaceutical’s priority pillars by driving growth through entry into the fast-expanding hair care market. The launch of Hair Buddy represents both Hemas Pharmaceuticals’ diversification into personal care and cements its digital transformation agenda with a dedicated e-commerce platform offering convenient island-wide delivery.

Central to this latest milestone is Hemas Pharmaceuticals’ long-standing distribution partner for over two decades, Chandrasiri and Sons, who will serve as the exclusive distributor for Hair Buddy. With several years of partnership behind them, the collaboration underscores Hemas Pharmaceuticals’ commitment to building on trusted relationships as it explores new markets and consumer segments.

Hemas Pharmaceuticals Managing Director Dr. Mahesha Ranasoma said, ‘As we continue to expand into new markets and healthcare categories, we’re not only pleased to renew and reaffirm longstanding and trusted partnerships, but we’re also eager to bring our customers a product that’s rooted in responsibility and free from harsh chemicals. Furthermore, Hair Buddy reflects Hemas Pharmaceutical’s focus on innovation, purpose, and ethically sustainable responsibility. Through Hair Buddy, Hemas Pharmaceuticals takes a meaningful step beyond healthcare into the realm of personal well-being.’

Oproma Cosmetics Managing Director Pradeep Mapalagama added, ‘With Hair Buddy, we aim to introduce customers to a holistic and carefully curated product that will ensure long-term hair care and profound customer satisfaction. Partnering with Hemas Pharmaceuticals ensures we not only bring this vision to life, but that it upholds and aligns with the same values of responsibility and innovation that we both share.’

From left: PCHE Head of Operations and Marketing Charthri Wijenayake, Co-Founder and Director – Academics Yasaara Kaluaratchi, Managing Director and Founder Somesh Perera, McLarens Group Group Managing Director Shehara De Silva, McLarens Lubricants Joint Managing Director Chaminda Gunarathne, and McLarens-3M Chief Executive Officer/Director Dilan SeneviratneIn a powerful celebration of leadership, courage, and empowerment, the Girls on Track inter-school competition, organised by the Student Council of Prospects College of Higher Education (PCHE), was held recently at the Nawam Mawatha public carpark from 7:30 a.m. to 2:30 p.m.

Five schools competed in a thrilling display of talent and teamwork with Visakha Vidyalaya emerging as the Winning Team, demonstrating exceptional coordination and racing skill.

Musaeus College secured the 1st Runner-Up position and Gateway International College – Dehiwala claimed the 2nd Runner-Up spot.

Special recognition was also awarded to the fastest drivers on the track, celebrating individual excellence and fearless performance.

The event was designed to inspire young girls to break barriers, discover their strengths, and lead with confidence through a series of engaging challenges.

At the heart of this initiative is McLarens Group, proudly stepping forward as the main sponsor of the event. With its flagship brands Mobil and 3M, McLarens Group brings not only industry excellence but also a deep commitment to fostering inclusive opportunities for the next generation.

McLarens Group Group Managing Director Shehara De Silva, shared her personal journey in motorsports-a story of resilience, passion, and balance. As a businesswoman and mother, De Silva emphasised the importance of creating platforms where young women can explore unconventional paths and thrive.

‘Motorsports taught me discipline, courage, and the value of pushing boundaries. Supporting Girls on Track is our way of encouraging young girls to embrace challenges and lead fearlessly,’ she said.

Mobil, a global leader in advanced engine oils, and 3M, renowned for its innovation across automotive, construction, industrial and consumer solutions, are both aligned with the event’s mission to promote excellence, performance, and empowerment. Their presence at Girls on Track reflects McLarens Group’s broader vision of driving progress-not just in business, but in society.