Category: Daily Financial Times

Asia Asset Finance PLC said yesterday its Rs. 1.5 billion Rights Issue has been oversubscribed.

The Rights Issue was 45.16 million ordinary voting shares at Rs. 33.30 per share.

Applications for provisional shares allocated were 44.582 million shares and applications for additional shares were 13.597 million shares.

Total applications received were for 58.179 million shares inclusive of additional 13.017 million shares reflecting an oversubscription of Rs. 433.5 million in value.

The Company’s share price closed at Rs. 47.90, down by 10 cents. Net assets per share as at 30 June 2026 was Rs. 41.89.

Asia Asset Finance in the quarter ended 30 June 2026 reported a Profit Before Tax of Rs. 877.9 million, up 197.8% year-on-year, and a Profit After Tax of Rs. 429.4 million, up 137.0% year-on-year. Total Assets grew 12.3% to Rs.60.42 billion while the Loan Portfolio expanded by Rs. 3.51 billion to Rs. 50.51 billion.

Muthoot Finance Ltd., holds 73% stake in Asia Asset Finance and the public float is 26.55% held by 3,188 shareholders as at 30 June 2026.

Sri Lanka’s tourism recovery continued to lose momentum in August, with international arrivals declining 3.29% year-on-year (YoY) to 191,704, leaving the country about 31,400 visitors behind last year’s pace after the first eight months.

The latest performance underscores the uneven nature of the recovery after a strong start to the year as geopolitical and geographical headwinds, particularly, disruptions linked to tensions in the Middle East, continue to weigh on visitor flows.

August’s outcome was also helped by the Esala Perahera, which provided a timely boost to arrivals, but the one-off seasonal attraction was insufficient to reverse the broader slowdown.

The country welcomed over 1.53 million tourists between January and August, compared with around 1.56 million during the corresponding period of 2025, a shortfall of 31,401 visitors, or 2% YoY.

More significantly, the latest figure remains below Sri Lanka’s pre-pandemic benchmark. Arrivals during the first eight months of 2018 were around 1.58 million, putting the 2026 performance approximately 3.1% below the corresponding 2018 level.

The slowdown is particularly pronounced when compared with the strong opening to the year.

January recorded 277,327 arrivals, up 9.7% YoY, while February surged 16.3% to 279,328, making the two months the strongest performers so far this year. The momentum, however, was sharply disrupted from March as escalating tensions in the Middle East affected regional aviation and travel patterns.

Arrivals fell 19.8% YoY to 183,979 in March, followed by a 22.3% contraction to 135,643 in April. May provided a temporary recovery, with arrivals increasing 9.7% to a record 145,745 for the month. The improvement was not sustained, however, as arrivals fell 9.9% to 124,551 in June before registering a further 1.7% decline to 196,845 in July.

August’s 191,704 arrivals consequently represent another month in which Sri Lanka has struggled to regain the visitor momentum established at the beginning of the year.

India remained the largest source market during August, contributing 47,253 visitors, followed by the UK with 19,588, China with 12,321, Germany with 11,405 and France with 10,885.

The dominance of India is even more pronounced on a cumulative basis. During January-August, India accounted for 385,483 arrivals or 25% of total arrivals so far in 2026, followed by the UK with 149,989 (10%) and China with 100,828 (7%). Germany, Russia, Australia, France, the US, Netherlands and Canada were among the other top source markets.

The concentration in a handful of markets, alongside the uneven monthly performance, leaves the tourism industry facing a challenging final quarter.

The latest data also makes the Government’s 2.7 million tourist arrival target for 2026 increasingly demanding. With just four months remaining, Sri Lanka needs approximately 1.17 million additional arrivals between September and December to reach the target.

This translates into an average of roughly 295,000 visitors a month during the final quarter. Such a monthly pace would be substantially higher than the average achieved so far this year and would require a significant acceleration in visitor flows during the traditional peak season.

Despite the arrivals target, the Tourism Deputy Minister Prof. Ruwan Ranasinghe on Monday said the focus is now on earrings and not the footfall.

Xapi, the unified governance platform spanning Data, API and AI Governance, has announced the launch of the Xapi Personal Data Protection Compliance Playbook, a practical implementation guide designed to help Sri Lankan organisations translate the Personal Data Protection Act into structured, operational and evidence-ready governance.

The launch comes as organisations across Sri Lanka prepare for the next phase of PDPA implementation, with core provisions scheduled to come into effect from 1 January 2027.

Developed as an implementation resource, the approximately 160-page Playbook centres on Xapi’s six-layer implementation framework and a four-level maturity model that allows organisations to assess their current state, identify priority gaps and determine what to address next. It also includes a Sri Lankan enterprise case study, leadership checklist and PDPA Gap and Readiness Audit.

Xapi CEO and Chief Architect Prabath Ariyarathna said the challenge facing organisations is increasingly one of implementation rather than awareness.

‘There has been considerable discussion around what the PDPA requires, but the real challenge is operationalising it. Compliance cannot live only in policies or spreadsheets; organisations need visibility into their data and the controls applied to it.This Playbook helps make that transition from understanding the law to building evidence-ready governance in practice.’

Head of Sales Shanaka Mendis said the Playbook is intended to give organisations a practical starting point.

‘Many organisations know PDPA readiness matters, but the question we hear most is, ‘Where do we start?’ The Playbook gives leaders and compliance teams a common framework to assess their position and build a roadmap towards compliance.’

By combining education, assessment and implementation guidance in one resource, Xapi aims to help organisations move beyond interpretation of the Act towards a practical question: whether they can consistently govern personal data, apply controls and produce evidence that those controls are working.

Xapi is a unified governance platform designed to simplify oversight across Data, APIs and AI for forward-thinking enterprises. Headquartered in Singapore, with leadership and operational support in Sri Lanka, Xapi serves enterprise clients and infrastructure-critical industries worldwide. The platform is a fully owned product of X-Venture.

Transparency International Sri Lanka (TISL) has filed a petition in the Supreme Court challenging the proposed ‘Anti-Corruption (Amendment)’ Bill placed on the Order Paper of Parliament on 19 August 2026.

The Bill proposes amendments to the Anti-Corruption Act No.9 of 2023 and the petition has been filed on Monday in the public interest.

TISL said the principal Anti-Corruption Act No. 9 of 2023 was a landmark reform designed to strengthen Sri Lanka’s anti-corruption enforcement framework in line with international standards. However, TISL warns that the proposed amendments introduce severe policy regressions, create major loopholes, restrict civic space and violate Fundamental Rights.

Far from strengthening anti-corruption efforts, they threaten transparency, accountability, and public trust by undermining the asset declaration regime, meaningful right to information and stripping off judicial oversight on the Authority’s discretion to refrain from prosecuting.

In a statement TISL said its petition outlined several key areas of constitutional challenge against the proposed Bill:

Clause 4 – Removing Judicial Oversight on Accomplice Prosecutions

The proposed amendment to Section 70 of the principal enactment authorises the Commission to empower the Director-General of Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to decide whether to refrain from prosecutions of accomplices in exchange for full disclosure, completely bypassing the requirement for Magistrate authorisation. This proposed amendment concentrates discretionary decision making authority in the position of the Director-General without judicial oversight and accountability, exposing the office to potential manipulation, external threats, political pressure and corruption vulnerabilities. Eliminating judicial oversight threatens the integrity of corruption prosecution and the credibility of the Commission’s enforcement mandate.

Clauses 6 and 18 – Raising the State Shareholding Threshold to 50%

The Bill proposes to amend Section 80(l)(x) of the principal enactment by raising the threshold of State or public-corporation shareholding from 25% to 50% for officers to be required to submit asset declarations. This change would exempt senior officers of State-linked companies where the State holds less than 50% shares. These entities exercise public functions and manage substantial public assets and contracts. A fixed 50% threshold ignores the reality of effective control through board appointments or voting rights and directly conflicts with the Right to Information (RTI) Act, which uses a 25% ownership threshold.

Clause 7 – Creating a Loophole by Excluding Cohabitants

The proposed amendment seeks to repeal Section 81(e) of the principal enactment, removing the requirement for public officials to declare the assets and liabilities of cohabitants who share their common household for at least six months prior to the declaration. Repealing this provision with no justification, allows corrupt officials to conceal illicit wealth by registering assets in the names of cohabiting household members who are not spouses or dependents. This hampers effective verification and cross-checking.

Clause 11 – Broad Redaction Powers and the Criminalising the exercise of Freedom of Expression

Alarmingly, the Bill proposes to amend Section 88 of the principal enactment:

a. It grants the CIABOC broad, undefined and arbitrary discretion to redact ‘any other information’ it considers violating an individual’s privacy. This open-ended power risks excessive redaction of key financial details that are vital for identifying conflicts of interest or unexplained wealth.

b. It inserts a new Subsection that criminalises citizens from using redacted asset declarations for any purpose other than making formal submissions under Section 86. It criminalises any other use of public information, making it an offence punishable by summary trial with a fine up to Rs. 100,000, imprisonment for up to one year, or both.

Policing what the public can do with public information creates a severe chilling effect on civic space, journalism, and free media. The freedom of expression guaranteed under Article 14(1)(a) of the Constitution includes the right to receive and impart information.

The Bill also proposes to repeal and replace Section 149 of the principal enactment, making bail the exception and remand the norm. The petition highlights that this provision is vague, constitutionally overbroad, lacks clarity, and fails to provide adequate guidelines, violating the principles of proportionality and fundamental rights.

TISL’s petition asserts that the said amendments represent a major policy regression and violate Sri Lanka’s international commitments and that the challenged clauses are inconsistent with Articles 1, 3,4,12,13, 14(1)(a), 14A, 126, 140, and 156A(1)(c) of the Constitution.

They infringe upon the Sovereignty of the People and fundamental rights, restrict the Right to Information Act, and impinge on the judicial power of the People.

Accordingly, TISL’s petition urges the Supreme Court to determine that the relevant clauses of the Bill are inconsistent with key provisions of the Constitution and requests the Court to determine that these provisions cannot become law unless they are passed by a two-thirds majority in Parliament and approved by the People at a Referendum.

Three months after being named the only Sri Lankan Entrepreneur among Southeast Asia’s Top 20 Rising AI Leaders, Gerald Sathiyasiva’s company has been accepted into NVIDIA Inception, the chipmaker’s global program for artificial-intelligence and machine learning startups.

Gerald Dickson Sathiyasiva was recognised in the Top 20 Rising AI Leaders category at the Digital Marketing Advertising and Technology Excellence Awards in Kuala Lumpur in April 2026, in a cohort drawn from Malaysia, Singapore, India and other Asia-Pacific technology hubs.

His company, The Emotion AI, is built on a claim that has gone largely unexamined in South Asian advertising: the tools brands here use to test their creative/content were trained somewhere else.

Global artificial intelligence platforms learn from the markets that generated their data and global averages. A bank in Colombo running a Sinhala campaign is, in effect, scored against how Indian consumers behave. The mismatch stays invisible until the media budget is gone.

The company’s flagship product, Viral Sense, scores an advertisement – an image, a video, a carousel or a script – before it runs, returning a 0-100 rating, a breakdown of what is working and what is costing the advertiser, platform fit, and a ranked list of fixes. It returns in seconds, against the weeks a conventional focus group takes, and benchmarks to the advertiser’s own industry and market rather than a global average. Its attention-prediction model correlates at roughly 0.70 with human eye-tracking.

Sri Lanka is the platform’s largest market by usage ahead of Malaysia and Singapore. The platform has scored pieces of creative across five live markets spanning South Asia, Southeast Asia and the Gulf.

Gerald said being the only Sri Lankan in the cohort ‘isn’t just personal recognition, it’s validation that world-class AI innovation can emerge from Colombo.

Membership of NVIDIA Inception gives the company access to NVIDIA’s developer stack, technical training and inference tooling, which it says it will apply to speeding up analysis of video advertising, and to training models further on region specific data.

Advertisers can score their first three assets free at theemotionai.com/creative-score.

The Emotion AI builds localised creative intelligence for South Asia, Southeast Asia and the Gulf. Its flagship product, Viral Sense, scores advertising creative before launch against region-specific benchmarks, and generates natively in English, Sinhala, Tamil, Bahasa and Arabic. The Emotion AI is a member of NVIDIA Inception.

The Cabinet of Ministers has approved a proposal to submit to Parliament regulations designating 68 businesses operating within the Colombo Port City as secondary businesses of strategic importance.

The 68 businesses operate across a range of sectors, including information technology, consultancy services, business process outsourcing, logistics, infrastructure, hybrid and integrated business models, and other general business activities, reflecting the expanding commercial activities within the Colombo Port City.

The designation was approved at the Cabinet meeting held on 30 March 2026, under the provisions of the Colombo Port City Economic Commission Act, No. 11 of 2021.

Following the Cabinet approval, regulations giving effect to the designation were published through an Extraordinary Gazette dated 10 April 2026. The regulations are to be submitted to Parliament for approval in accordance with the relevant provisions of the Colombo Port City Economic Commission Act.

The proposal to this effect was submitted by President Anura Kumara Dissanayake, in his capacity as the Finance, Planning and Economic Development Minister.

Tropic of Linen opened its second store in Colombo on 25 August, taking up a space on the eighth floor of The Shoppes at City of Dreams, Colombo, Sri Lanka.

The brand’s commitment to providing high-quality clothing for Sri Lankans continues with its newest store, which combines traditional influences with modern silhouettes, while being designed to accommodate Sri Lankan sizes and needs.

Despite the challenges that come with working with linen, founders Minha Akram and Shukran Salil are determined to move away from the traditionally loose silhouettes associated with the fabric and introduce more distinctive and contemporary designs. Tropic of Linen does not shy away from the challenge, with co-founder Minha Akram explaining that she aims to ‘push the boundaries’ of what can be achieved with linen, despite the fact that ‘development takes forever’.

The decision to expand to City of Dreams was largely influenced by the exclusivity of the setting. While Minha Akram noted that Tropic of Linen does not consider itself a ‘typical mall brand’, she believes the location provides an ideal opportunity for international visitors to discover the brand and potentially introduce it to a wider global audience.

The brand’s efforts to challenge convention extend beyond its clothing and into the design of the store itself. The space incorporates natural light and textures, creating an environment that reflects the natural and distinctive character of linen. This sets Tropic of Linen apart from the more commercialised fashion retailers within The Shoppes.

‘Over the years, visitors told us our boutique had become a must-visit destination in Sri Lanka,’ added Minha. ‘We loved that our brand travelled organically by word of mouth. Expanding to City of Dreams was the natural next step-placing us on a global stage to showcase the calibre of Sri Lankan craft and contemporary design to a wider audience.’

Through both its clothing and retail space, Tropic of Linen continues to establish an identity that blends Sri Lankan needs and traditions with contemporary design, while challenging the conventional perceptions surrounding linen fashion.

Founded in 2014, Tropic Of Linen was a pioneer in Sri Lanka’s dedicated linen landscape. The brand marries Akram’s training in fine art and design with Salih’s two decades of expertise in high-end apparel manufacturing for global fashion houses.

Tropic Of Linen’s pieces are intentionally crafted to outlast short-term fashion cycles. Celebrated for its breathability in tropical climates, the high-quality linen fibre naturally softens and gains character with age.

Beyond its two signature Colombo boutiques, Tropic Of linen maintains a curated presence in the historic Galle Fort, partners with select international retailers, and ships worldwide via its website tropicoflinen.com.

Union Bank of Colombo PLC has proposed a Rs. 708.4 million Rights Issue to strengthen its Tier 1 capital adequacy and support expansion of its loan book.

The bank’s Board, at its meeting on 31 August, resolved to recommend to shareholders a Rights Issue of up to 67,722,396 new ordinary voting shares at Rs. 10.46 each, on the basis of one new share for every 16 existing ordinary voting shares.

The proposed issue is subject to the Colombo Stock Exchange granting approval in principle for the issue and listing of the new shares, as well as shareholder approval at an Extraordinary General Meeting (EGM).

The bank’s stated capital as at 30 June 2026 stood at Rs.16.33 billion. The bank reported net assets of Rs. 19 per share as of end-June 2026. Culture Financial Holdings Ltd., was the largest shareholder with a 70.84% stake followed by Vista knowledge Ltd., with 5.97% and Associated Electrical Corporations Ltd., with 2.63%.

An EGM will be convened to obtain the required shareholder approval for the proposed Rights Issue.

The Sri Lanka Tourism Development Authority (SLTDA) officially launched its nationwide capacity-building campaign, ‘Grow Your Tourism Business with National Tourism Skilling Program (NTSP),’ on 31 August, from the scenic regional hub of Ella.

Directed under the leadership of Tourism Deputy Minister Prof. Ruwan Ranasinghe, the comprehensive initiative aims to transform micro, small, and medium enterprises (MSMEs) by accelerating their digital readiness and business formalisation across the local hospitality ecosystem.

The entire islandwide operation is under the direct coordination of SLTDA Director of Standards and Quality Assurance Tharanga Rupasinghe, ensuring that all rural operators align seamlessly with international hospitality standards. By utilising the framework of the NTSP, the campaign focuses on delivering essential digital payment tools, modern online marketing insights, and compliance frameworks directly to village-level enterprises, handicraft artisans, and independent tour operators.

Speaking at the launch event in Ella, Deputy Minister Prof. Ranasinghe emphasised that sustainable growth in the travel sector relies heavily on empowering smaller stakeholders to become resilient, data-driven participants in the modern market. ‘True economic resilience in our tourism sector cannot be achieved through large-scale infrastructure alone, but must be built from the ground up by transforming our local communities and regional MSMEs into direct, digitally enabled beneficiaries of global travel traffic,’ Prof. Ranasinghe noted. Through this synchronised, localised training approach, the SLTDA intends to systematically protect cultural heritage while elevating the service quality benchmarks of regional travel hotspots nationwide.

Regional hospitality groups, led by the Ella Tourism Association, have strongly welcomed the launch of the SLTDA national skilling campaign, calling it a vital step toward safeguarding the destination’s international reputation. Local operators noted that rapid commercial growth in the Uva Province has highlighted an urgent need for structural standardisation, making the arrival of the National Tourism Skilling Program (NTSP) highly timely.

The grassroots response focused heavily on the benefits of formalisation and digital integration for the region’s diverse service sector. The Ella Homestay Owners Collective praised the focus on digital payment tools, noting that transition support will help smaller vendors capture direct bookings and reduce their reliance on third-party booking commissions.

The Uva Tuk-Tuk and Adventure Guides Association highlighted that the safety and compliance training will build trust with high-spending international travelers, effectively raising service quality benchmarks across the town. Local association leaders emphasised that having the SLTDA directly coordinating the field training ensures the program addresses practical, local challenges rather than just theoretical rules. Following the initial rollout, regional committees have pledged to work alongside the SLTDA to ensure that even the smallest village artisans and micro-enterprises achieve official registration, positioning Ella as a model hub for high-quality, community-driven sustainable tourism.

The Sri Lanka International Insurance Summit (SLIIS) 2026 concluded in Colombo following three days of high-level discussions focused on strengthening the role of insurance in building economic confidence, protecting communities, and supporting sustainable growth amid an increasingly complex global risk environment.

Organised by the Insurance Association of Sri Lanka (IASL), the second edition of the SLIIS was held from 10 to 12 August at Cinnamon Life under the theme ‘Insurance as a Catalyst for Economic Confidence in a Complex Risk Landscape.’

The Summit brought together 500+ delegates representing, including insurance leaders, regulators, policymakers, reinsurers, brokers, technology specialists, financial sector professionals, and business representatives. The Summit also brought together 41 distinguished speakers, including 13 international experts and 28 local leaders, representing a broad spectrum of expertise across the life and general insurance sectors.

Building on the inaugural edition held in 2024, the SLIIS 2026 reinforced Sri Lanka’s position as a regional platform for insurance knowledge-sharing, professional development, and international industry collaboration.

The Summit commenced with an official inauguration and networking reception on 10 August. The inauguration was graced by Chief Adviser to the President on Digital Economy Dr. Hans Wijayasuriya as Chief Guest, together with Insurance Regulatory Commission of Sri Lanka (IRCSL) Chairman Dr. Ajith Raveendra De Mel and Director General Damayanthi Fernando as Guests of Honour.

Discussions throughout the Summit highlighted the need for insurance to evolve from a primarily reactive mechanism for compensating losses into a strategic contributor to national resilience, business continuity, financial inclusion, and long-term economic development.

IASL President and HNB Life Executive Director and CEO Lasitha Wimalaratne said the Summit demonstrated the value of bringing global knowledge and local experience together at a time when risks were becoming increasingly interconnected.

‘The SLIIS 2026 provided an important opportunity for the industry to examine how insurance can contribute to economic confidence while responding to new and evolving risks. The discussions reflected the need for stronger institutions, sound governance, responsible innovation, and closer collaboration among insurers, regulators, governments, and businesses,’ Wimalaratne said.

‘The participation of distinguished local and international speakers demonstrates the relevance of Sri Lanka as a platform for professional exchange and industry collaboration. Our next priority is to translate the knowledge and perspectives shared at the Summit into practical action that benefits policyholders, businesses, and the wider economy,’ he added.

The technical program on 11 August opened with a discussion on climate and catastrophe resilience, examining infrastructure protection, parametric insurance, and risk management frameworks. Participants considered how data, modelling, and innovative insurance mechanisms could improve preparedness for climate-related and catastrophic events.

A session on microinsurance and financial inclusion explored approaches to expanding protection among underserved communities. Discussions highlighted the importance of affordable products, accessible distribution channels, customer education, and partnerships that can extend insurance coverage to individuals and enterprises currently outside the formal protection system.

The program also examined the future of motor insurance as electric vehicle (EV) adoption, telematics, and data-driven pricing begin to reshape the sector. Speakers discussed the implications of new vehicle technologies, changing risk profiles, and the growing use of real-time data in underwriting, pricing, and claims management.

Technology emerged as another central theme, with a dedicated session examining artificial intelligence (AI), automation, and advanced analytics as strategic differentiators. The discussion focused on how insurers can use technology to improve operational efficiency, strengthen risk assessment, personalise customer experiences, and respond more effectively to emerging threats.

The final day addressed the implications of global demographic shifts and changing lifestyles for insurance products, distribution models, and customer engagement. Speakers considered how ageing populations, evolving employment patterns, and changing household structures are influencing demand for protection, savings, and retirement solutions.

The reinvention of life and health insurance was explored through discussions on digital transformation, wellness integration, and retirement security. Participants examined how insurers can move towards preventive, customer-centred models that encourage healthier lifestyles while providing greater financial security throughout different stages of life.

The implementation of International Financial Reporting Standard (IFRS) 17 and IFRS 9 was also discussed, with speakers examining how the standards have changed the measurement of insurance performance, profitability, and Balance Sheet strength. The session highlighted the importance of stronger data capabilities, financial discipline, and closer alignment among actuarial, finance, risk, and technology functions.

The Summit concluded with a discussion on embedding environmental, social and governance (ESG) principles into insurance strategy. Participants considered how insurers can move beyond compliance by incorporating sustainability into underwriting, investment decisions, product development, corporate governance, and long-term risk management.

IASL Marketing and Sales Forum Chair Roshan Peiris and Softlogic Life Senior General Manager – National Distribution said: ‘The conversations at the SLIIS 2026 addressed the areas that will influence the future competitiveness and relevance of the insurance industry. These include changing customer expectations, emerging distribution models, digital transformation, financial inclusion, and the growing demand for products that respond to new lifestyles and risks.’

SLIIS 2026 Project Chair and Union Assurance Chief Marketing Officer Mahen Gunarathna said: ‘The Summit created an environment where global and local stakeholders could establish meaningful professional relationships, exchange perspectives, and explore future partnerships. The diversity of speakers and participants enabled delegates to gain a broader understanding of the developments influencing insurance across Sri Lanka, South Asia, and international markets.’

The IASL said that the insights and recommendations generated through the SLIIS 2026 would support continued industry dialogue on resilience, innovation, inclusion, governance, and sustainable growth.