Category: Daily Financial Times

A Gazette notification amending the Betting and Gambling Levy has been issued, coming into effect from 1 October.

Under the new regulation, the levy on gross collections from gambling operations, including bookmakers and gaming operators, has been raised from 15% to 18%.

The amendment also doubles the casino entry fee for Sri Lankan citizens to $ 100.

Dhammika Perera’s LB Finance PLC has received regulatory approval for two debenture issues to raise a total of Rs. 20 billion.

The first is for 50 million listed, rated, senior, unsecured, redeemable debentures with an option to issue a further 30 million debentures upon oversubscription of the initial issue and with a further option to issue up to a further 20 million in the event of an oversubscription of the initial issue and the second tranche to raise up to a maximum amount of Rs. 10 billion.

The company is also proposing to offer 50 million listed, rated, subordinated, unsecured, redeemable debentures with an option to issue a further 30 million debentures in the event of an oversubscription of the initial issue and with a further option to issue up to a further 20 million in the event of an oversubscription of the initial issue and the second tranche to raise up to a maximum amount of Rs. 10 billion.

The right to exercise the options will be on discretion of the company.

The Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka has approved the debenture issues.

The Company proposes to have these debentures listed on the Colombo Stock Exchange subject to receipt of the requisite approvals from the exchange.

LB Finance reported a Rs. 276 billion asset base as at 30 June with retained earnings amounting to Rs. 41.3 billion. Its deposit base was Rs. 145 billion and its loan book was Rs. 223 billion as at 30 June. Debt instruments and other borrowed funds amounted to Rs. 19.8 billion.

Opening bowler, Ranjith Kumar Newton with a brilliant spell of bowling (04 overs – 28 runs – 06 wickets) and a containing spell of bowling by V. Viyaskanth (04 overs, 23 runs 03 wickets) steered BBK Partnership to a thrilling 07 runs win over David Pieris Group of Companies, in the ongoing 32nd Singer – MCA Super Premier League T20 Tournament 2025, continued on Saturday at the MCA Grounds.

David Pieris Group of Companies chasing a winning total of 169 runs in 20 overs gave a spirited chase with two gallant batting performances by Asitha Wanninayake (50 runs in 38 balls with one six and 06 fours) and Tharinda Nirmal (63 runs in 42 balls with 05 sixes and 02 fours), but fell short by 07 runs, scoring 161 all out in 20 overs.

The morning match between Hayleys Group and Maliban Biscuits was abandoned without a ball being bowled due to heavy rain.

Chief scores of the afternoon match:

BBK Partnership beat David Pieris Group of Companies by 07 runs.

BBK Partnership – 168 for 08 in 20 overs ( Niroshan Dickwella 21, S. Sarangan 45, Santhush Gunatillake 38, A. Kajan 29, Manjula Gannile 2/37, Asitha Wanninayake 2/16)

David Group of Companies – 161 all out in 20 overs. (Asitha Wanninayake 50, R. Sembakutti 23, Tharinda Nirmal 63, Ranjith Kumar Newton 6/28, V. Viyaskanth 3/23)

The tournament will be continued today at the MCA Grounds.

Sri Lanka’s tourism leaders last week called for a shift from traditional destination promotion to innovative product development, as the industry unveiled the ‘Ruhunu Ring,’ a landmark private-sector-led tourism circuit designed to transform the country’s southern travel experience and raise per-tourist earnings.

Speaking at the International Tourism Leaders’ Summit 2025, Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Buddhika Hewawasam stressed the need for a new era of ‘productive tourism development’ that enhances engagement, diversification, and income generation across the value chain.

‘If we are thinking about the future of tourism in Sri Lanka, we must focus on three key aspects; connectivity and access, investment diversification, and new product development. The ‘Ruhunu Ring’ represents the first such productive tourism initiative, designed to increase visitor interaction and generate higher spending by linking cultural, heritage, and experiential attractions,’ Hewawasam said.

He noted that heritage destinations such as Sigiriya, Anuradhapura, and Polonnaruwa have historically generated significant revenue through the Cultural Triangle, but Sri Lanka now needs modern experiences that blend nature, heritage, as well as community engagement, to compete globally.

The ‘Ruhunu Ring,’ a 300-kilometre circuit spanning the Deep South, connects a mosaic of attractions from wildlife parks like Yala and Udawalawe to coastal hubs such as Mirissa and Arugam Bay and cultural landmarks like Kataragama. ‘It is the first of several proposed thematic tourism zones under a broader national strategy to position Sri Lanka as a high-value experiential destination,’ Hewawasam added.

Tourism advocate and entrepreneur Yasas Hewage, who helped conceptualise the initiative, urged the industry to ‘reimagine’ the country’s offerings beyond the well-trodden Cultural Triangle.

‘The elephant in the room is that our per-day tourist spend remains around $ 171. To double or quadruple that, we need fresh, curated products that go beyond the traditional,’ Hewage said. ‘The ‘Ruhunu Ring’ connects micro-brands, regional identities, and diverse landscapes from coastal trails to misty highlands, giving travellers a continuous, immersive journey rather than isolated experiences,’ he added.

Hewage described the ‘Ruhunu Ring’ as a ‘curated circuit’ that integrates wildlife, adventure, wellness, sports, and culinary experiences, encouraging visitors to explore lesser-known destinations and stay longer within local communities.

The summit also hosted a high-level discussion on ‘Tourism Innovation and Connectivity for the Future of Sri Lanka’s Tourism,’ where industry experts underscored the urgent need for improved air connectivity, strategic investments, and integrated marketing to support new tourism products.

Sri Lanka enters the period of 2025-2030 at a critical juncture, having emerged from its severe economic crisis in the recent past. Sri Lanka’s economic landscape once in the brink of collapse in the aftermath of the 2022 crisis has demonstrated a remarkable turnaround, yet the path to sustained growth is weighted with significant challenges. Though the country achieved a swift rebound through decisive policy measures, a strategic roadmap with deep structural transformation is imperative to establish a resilient economy without derailing the current momentum.

A report was presented by a group of professionals on the central theme ‘Sustaining Transformative Growth in 2025-2030’ with the objective of ensuring the continuity of transformative growth in the next half decade. This article is based on the presentations of the contributing professionals namely, Prof. Sirimal Abeyratne – Executive Director of the Centre of Poverty Analysis, Dr. Ganeshan Wignaraja – fellow ODI Global and Yvette Fernando – former Senior Deputy Governor of the Central Bank of Sri Lanka who elaborated on its key themes and implications, at a seminar organised by the Centre for Poverty Analysis, the Overseas Development Institute and the Sri Lanka Economic Association at the Organization of Professional Associations of Sri Lanka.

Structural impediments

The recovery is laden with inherent uncertainty as the country experienced a historical tendency towards inconsistent policy and institutional inefficiencies which aggravated the crisis situation. Structural reforms and sectoral strategies are necessary to convert the macroeconomic stabilisation into a trajectory of sustained and transformative growth. The phase preceding the crisis was defined by sovereign default, acute shortage of foreign exchange, double digit inflation and disrupted productive activity. Successive Governments faced twin deficits for years. Persistent budget deficits were financed through unsustainable debt.

Due to revenue shortfalls and high expenditure in the past, authorities were committed to broaden the tax base which was a part of the stability program. New taxes affected the basic needs. As a result of the high post crisis poverty and high inflation, the real income was wiped out and holding to the permanent income hypothesis people consumed less. Hidden poverty was seen in the middle class. There are binding constraints such as low female participation rate, skill gaps, brain drain and a high ageing population in the labour force.

Formidable challenges

Debt sustainability remains the cornerstone of economic recovery. An equally pressing challenge is the management of foreign exchange deficits. The coming years demand a credible path to debt sustainability, requires rigorous fiscal consolidation and effective management of external sector vulnerabilities. Sri Lanka is expected to end the IMF debt target in 2027. In 2028 the country needs to resume its debt restructuring program of bilateral and commercial debt. The Government’s target of achieving debt sustainability by 2032 hinges on structural reforms, fiscal discipline and stronger export earnings.

Even though robust recovery is visible in key sectors such as tourism, the recovery is vulnerable to unpredictable global headwinds. While inflows of tourism have rebounded, the country remains heavily reliant on imports. Export earnings are concentrated in a narrow product base exposed to global demand shifts and price volatility. Export earnings are insufficient to pay the external debts.

The domestic markets do not support a large manufacturing base. Rising global protectionism and trade policy uncertainty will further underscore the country’s vulnerability to external shocks and trade disruptions. Trade and investment are important for the country’s success. The trade agenda is controversial due to inconsistent global tariffs. Supply chains are challenged by high factor costs.

Accelerating transition

Sri Lanka has to embark on a deep transformation. The country’s transformative growth will rest on the interlinked pillars such as restoring debt sustainability, entrenching fiscal discipline, and narrowing external imbalances. We have been targeting the estimated indicators of these numerators as a percentage of GDP. Whereas improving the GDP denominator plays a vital role in achieving sustained growth. Without focusing on the GDP, the stability of the other sectors cannot be sustained. The GDP growth should align with export growth especially from the tradable sectors.

Trade and investment are important for the country’s success. Fiscal consolidation is central to this agenda. Achieving a durable primary surplus is vital for anchoring investor confidence and creating fiscal space for priority investments in infrastructure, social protection and human capital.

Deepening trade integration and accelerating the transition towards reducing import dependency while prioritising export led growth moving out of a shallow trade base is vital for growth. The trade strategy around FDI too should be looked into comprising of high return projects. The haphazard tariff structure should be restructured aligned to the country’s economic goals with rational trade agreements.

Embracing a revolutionary digital transition with upskilling is also important to accelerate growth. The education system must be modernised to align with the demands of a high value digital economy. While developing and retaining human capital in order to reverse brain drain and retain youth and skilled professionals migrating, addressing the root cause of the exodus is required.

Building resilience

Catalysing the private sector, the State should reprioritise goals and facilitate private sector led growth. A national plan which is centrally driven with an independent growth committee is needed to ensure transparency and proper management.

Social protection and safety networks can help to survive but it does not eradicate poverty. With overall growth and the aggregate demand people receive income and generate employment which is needed to come out of poverty. Sri Lanka needs a policy consensus and a sustained commitment to reduce the sectoral poverty. It needs inclusive growth and social stability to achieve long term productivity and social stability.

Based on Sri Lanka’s underperformance compared to South Asian countries, lessons from successful emerging economies can provide a powerful blueprint to enhance the overall efficiency of the economy which is a key prerequisite for global competitiveness.

The success of this hinges on a sustained commitment to reform a new resilient economic model. This comprehensive approach will help to ensure a transition from the short-term recovery to a long-term stabilisation, underpinning the sustained growth.

England eventually breathed a sigh of relief after being made to work hard for their 4-wicket win against Bangladesh in an ICC Women’s Cricket World Cup match played at Guwahati yesterday.

The win was England’s second in as many games and put them on top of the standings on net run rate over India with four points.

Heather Knight’s composure proved decisive, guiding her side home in a tricky chase. Charlie Dean had mentioned at the break that they needed to dig deep, and that’s exactly what her former skipper did. Marufa Akter once again struck early for Bangladesh, removing both openers, before Nat Sciver-Brunt’s counterattack (32 off 41 balls, 5 fours) ended tamely with a full toss to midwicket. A mini collapse followed with four wickets tumbling for 34 runs, but Knight held firm and, along with Dean, stitched a crucial 80-run stand for the seventh wicket to take England over the line. Player of the Match Knight ended unbeaten on 79 scored off 111 balls (8 fours, 1 six) and Dean was 27* off 56 balls.

Earlier Bangladesh’s tactics were strange to understand. At times they were content to just bat and not worry about the net run-rate. They seemed content playing within themselves and never really shifted gears. A few small partnerships came and went, but all at a sluggish tempo. Sobhana Mostary, batting at No.4, held the innings together and brought up her maiden ODI fifty (60 off 108 balls, 8 fours), yet found little support at the other end. It was only Rabeya Khan’s late burst, an unbeaten 27-ball 43 (6 fours, 1 six) that gave the innings some life and lifted them to 178 which is a total well below par. England’s spinners did the bulk of the damage, claiming nine of the ten wickets to fall, with Sophie Ecclestone leading the charge with 3/24.

For many years, customer satisfaction was measured through surveys carried out with a close-ended question: ‘How satisfied were you with your service experience?’ It was a ‘Yes’ or ‘No’ response in which many were comfortable with more ‘Yes’ answers as the scores. But in 2025, relying on satisfaction alone is complacency. It only tells you how a customer felt at that moment in time. It is in no way a guarantee that the customer will remain with you, make repeat purchases, or create favourable word of mouth in the future.

It is important to understand that in reality loyalty is not just a feeling; it is a behaviour. A customer who continuously patronises a brand does so because of a memorable experience. A customer may be satisfied with an offer made at that moment in time and yet prefer a competitor brand at the first sign of a better price or convenience. To win in the modern market, the C-Suite must adopt metrics that measure future value, not just past satisfaction.

Hence, it is recommended to use the following two measurement metrics: Customer Effort Score (CES) and Net Promoter Score (NPS).

Possible usage of Customer Effort Score (CES)

Customer Effort Scores are a tangible measure of customer experience. It is a single metric that measures the amount of effort a customer must use to interact with a company or use its products or services. Using this metric helps companies to understand the health of their customer experience.

A typical question in conducting a CES survey is to ask customers to rate ‘how easy it was to resolve your issue’ on a numerical scale, such as 1 (‘very low effort’) to 5 (‘very high effort’). The CES is calculated by taking the total sum of all responses and dividing it by the total number of respondents to find the average score. A lower effort CES score indicates that the company is providing good customer experiences. It suggests that customers are more loyal to a service that is easier to use. A higher effort CES score is likely a sign of something wrong in an aspect of the user experience that is demanding more effort from the customer. CES is easy to deploy and track over time and is best suited for measuring customer loyalty.

Organisations should pay particular attention when providing services through 24-hour hotlines, launching new products or services, or introducing special offers. They must ensure adequate resources are in place for customers to easily access the service provider. If customers face long queues on phone lines with delayed responses, or if sales staff take a long time to attend to requirements, this creates a higher CES which may damage loyalty. Saying ‘We never expected this many enquiries or footfalls’ is not a valid excuse. The reality is simple: if you delay, someone else will attract the customer.

A landmark study in the Harvard Business Review by Dixon, Freeman and Toman (2010) found the predictive power of CES to be strong. Of the customers who reported low effort, 94% expressed an intention to repurchase, and 88% said they would increase their spending. Conversely, 81% of customers who had a hard time solving their problems reported an intention to spread negative word of mouth.

Ease, it turns out, can be even more powerful than delight.

Possible usage of Net Promoter Score (NPS)

Net Promoter Score is the most widely used customer experience metric. NPS is based on a single question asked of the customer: ‘How likely are you to recommend us to another?’ The objective is to measure loyalty by assessing the likelihood of recommendation. An NPS survey uses a scale from 0 to 10. Customers who rate 0 to 6 are unhappy customers, known as detractors. Those who score 7 to 8 are passives. Customers who score 9 to 10 are promoters.

The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. This produces a score between -100 and +100, which indicates overall perception and brand loyalty. Promoters are loyal customers who are happy to share their positive experiences. Detractors are customers who move away from the service provider, spreading negative word of mouth, sometimes with exaggeration.

NPS is an important measure for assessing loyalty, as it directly correlates to business growth and revenue. Once businesses identify promoters, they can encourage them to act as brand advocates. By analysing feedback from detractors, businesses can also make improvements to retain and attract customers.

Carrying out surveys requires significant investment in terms of time, money and effort. These surveys should not be done for the sake of reporting results. Metrics are of little use if they do not drive action. What is needed is in-depth study to assess the root causes behind customer responses. Insights must be used to remedy situations quickly, ideally within hours rather than weeks, to improve the business. Customers must feel that their feedback is valued and used for the benefit of all stakeholders.

The transition from satisfaction to loyalty metrics is not about abandoning old tools but about upgrading the dashboard. In 2025, the companies that thrive will be those that measure what truly predicts the future.

Tourism industry has maintained its growth momentum into October, welcoming 34,046 arrivals in the first six days of the month, a robust start following the record-breaking performance in September.

According to the Sri Lanka Tourism Development Authority (SLTDA), the country is averaging 5,299 arrivals per day, placing it on track to achieve the monthly target of 197,693 visitors set for October 2025.

The figure reflects a 14% year-on-year (YoY) increase compared to 25,965 visitors recorded during the same period last year, signalling continued confidence in Sri Lanka as a preferred South Asian travel destination.

India once again emerged as the dominant source market, contributing 10,738 visitors, or 31.5% of total arrivals in the first week. China followed with 3,684 tourists (10.8%), while the United Kingdom (2,200; 6.5%), Germany (1,988; 5.8%), and Bangladesh (1,577; 4.6%) rounded out the top five markets.

Year-to-date (YTD) figures show that Sri Lanka has now surpassed 1.75 million arrivals, with India leading at 386,030 visitors (22%), followed by the UK with 164,093 (9%) and Russia with 123,414 (7%).

Industry analysts note that the strong performance in early October builds on the momentum generated during the third quarter, bolstered by improved air connectivity, new destination promotions in key source markets, and the government’s renewed focus on attracting high-value travellers.

To achieve the revised target of 2.6 million tourist arrivals, Sri Lanka will need to attract an additional 840,460 visitors during the final quarter of the year. The initial goal for 2025 had been set at 3 million arrivals.

Sri Lanka Police have issued a public warning about an increase in online scams being carried out through popular messaging platforms such as Telegram and WhatsApp.

According to Police, cybercriminals are using deceptive methods to gain access to users’ online accounts, including tricking victims into revealing their usernames and passwords through fake links and QR codes. Once the information is obtained, the fraudsters block the original owners from their accounts and use them to carry out further scams.

Investigations have revealed that these criminals often lure victims by offering fake job opportunities and requesting payments under various pretexts.

The Police urged the public to exercise caution when responding to unsolicited messages or offers circulated through social media groups, even if they appear to come from known contacts or familiar platforms. They also advised against clicking on links or visiting websites shared through such messages.

Authorities further cautioned users to ignore requests for money transfers, currency exchanges, or the use of personal bank accounts for third-party transactions, even if made by acquaintances on platforms like Viber or WhatsApp.

Police emphasised that users should never share sensitive information such as account credentials or one-time passwords (OTPs) with anyone and should verify the authenticity of online payment requests before proceeding.

The public has been urged to remain alert and adopt secure digital practices to avoid falling victim to these increasingly sophisticated online scams.

Non-Bank Financial Institutions (NBFIs), or popularly known as finance companies, reported a combined Profit After Tax (PAT) of Rs. 18 billion in the second quarter of 2025, up 59.3% from Rs. 11.3 billion a year earlier with net interest incomes rising 28.3% year-on-year from Rs. 44.4 billion to Rs. 57 billion.

This is according to the Central Bank of Sri Lanka (CBSL) Financial Soundness Indicators Report for Q2 2025.

CBSL said that NBFI sector-wise Return on Assets increased to 6.9% in the quarter, compared to 5.1% a year ago, while Return on Equity increased from 10.9% a year ago to 15.2%.

Total assets of the NBFI sector grew 25.8% year-on-year to Rs. 2.28 trillion in the second quarter of 2025, up from Rs. 1.8 trillion a year ago. In comparison, banking sector assets had grown 15% year-on-year to Rs. 23.8 trillion (see https://www.ft.lk/front-page/Banking-sector-assets-up-15-to-Rs-23-8-t-in-Q2-2025-PAT-surges-68/44-782659).

Loans and advances of the NBFI sector grew 30.2% year-on-year to Rs. 1.74 trillion in the quarter, up from Rs. 1.2 trillion a year ago.

CBSL said total liabilities excluding equity increased by 29% year-on-year to Rs. 1.77 trillion, up from Rs. 1.37 trillion a year ago mainly due to increased deposits and borrowings from financial institutions to fund lending.

The deposit base of the NBFI sector had grown 16.3% year-on-year to Rs. 1.16 trillion, up from Rs. 1 trillion a year ago, while borrowings surged 76% from a Rs. 268.4 billion a year ago to Rs. 472 billion in the second quarter of 2025.

Equity funding increased 16% year-on-year to Rs. 510 billion, up from Rs. 440 billion a year ago.

CBSL said that total regulatory capital to risk-weighted assets declined slightly to 22% in the second quarter of 2025 compared to 23.8% a year ago with total borrowings to equity increasing 0.9 times from 0.6 times a year ago.

Gross non-performing loans of the NBFI sector improved considerably to 8.3% as end June 2025, compared to 13.6% a year ago. In absolute terms, gross non-performing loans of the sector rose 18% to Rs. 151.7 billion in the second quarter of 2025, up from Rs. 185 billion a year ago.