Category: Daily Financial Times

DFCC Bank PLC yesterday said that it has completed its acquisition of Standard Chartered Bank Sri Lanka’s wealth and retail banking business.

Approximately 50,000 customers, together with colleagues from the business, have now joined DFCC Bank, it said.

The transaction includes customer relationships across Priority Banking, credit cards, retail lending, deposits, wealth management, and small and medium enterprise (SME) portfolios, together with selected operating assets. It strengthens DFCC Bank’s retail, wealth management, and SME capabilities, while expanding the scale and reach of these businesses.

For customers, the transition has been planned around continuity. Months of detailed preparation and close collaboration across both organisations have enabled customers to retain many of the banking arrangements, relationships, and services they use every day. Their existing Standard Chartered account numbers remain usable alongside their new DFCC Bank account numbers, while their existing credit and debit cards, card PINs, standing instructions, direct debits, and recurring payment arrangements continue as before.

Saved payees and beneficiaries have also been migrated to the bank’s digital banking platforms, DFCC ONE and DFCC iConnect, removing one of the most common inconveniences associated with changing banks. Customers with existing branch and Relationship Manager arrangements can continue banking through the same branches and same Relationship Managers.

Customers who have joined DFCC Bank now have access to the bank’s wider range of personal banking, wealth management, SME, card, and lending solutions. They are supported by DFCC Bank’s islandwide network of over 130 branches, access to more than 5,000 ATMs through the LankaPay network, DFCC ONE, DFCC iConnect, and dedicated customer service channels.

Eligible customers will also have access to DFCC Pinnacle, the bank’s premium banking proposition.

The acquisition is an important step in DFCC Bank’s long-term strategy to expand its retail and wealth management franchise, strengthen its SME business, and broaden its ability to serve customers across Sri Lanka.

DFCC Bank CEO Thimal Perera said: ‘From the very beginning, our focus has been on making this transition as seamless and familiar as possible for customers. Behind that experience has been an exceptionally complex technology program, supported by months of detailed planning, close collaboration, and an extraordinary effort by teams across both organisations. Success meant ensuring that customers experienced as little of that complexity as possible. Their existing Standard Chartered account numbers remain usable alongside their new DFCC Bank account numbers. They can continue using the same credit and debit cards and the same card PINs, while their standing instructions, direct debits, recurring payments, instalment arrangements, and other everyday banking arrangements continue as before.’

He added: ‘We have also transferred their saved payees and beneficiaries to our digital banking platforms, removing one of the most common inconveniences customers face when changing banks. Customers with existing branch and Relationship Manager arrangements can continue banking through the same branches and with the Relationship Managers they already know and trust. I extend my sincere appreciation to my colleagues at DFCC Bank and our colleagues at Standard Chartered Bank, the Central Bank of Sri Lanka, our technology and implementation partners, and everyone whose expertise and commitment made this possible. It is an honour to welcome our new customers and colleagues to DFCC Bank. We look forward to earning their trust and supporting them through every stage of their financial lives.’

Standard Chartered Sri Lanka CEO Bingumal Thewarathanthri said: ‘This transition reflects a strategic decision in line with Standard Chartered Group’s global strategy, to focus our resources in areas where we have the necessary scale and most distinctive proposition. We are grateful to our clients for the trust they have placed in us over the years, and to our colleagues for their professionalism and commitment throughout this transition. We extend our best wishes to our clients and staff who have moved to DFCC Bank, and wish them every success for the future.’

Forensic officials yesterday commenced inspections at Mahara Prison following the violent unrest that erupted on 1 August, while multiple investigations are underway into one of the most destructive prison riots in recent years.

Police said the magisterial inquiry into the incident was concluded on Saturday, while forensic examinations are continuing today.

The violence claimed the life of one inmate, while 10 others sustained injuries and are currently receiving treatment at the Ragama Hospital.

Prison authorities estimate that damage caused by the rioting exceeds roughly Rs. 150 million, although a full assessment has yet to be completed.

The Department of Prisons has launched its own internal investigation in addition to the Police investigation into the Mahara Prison violence to find out the causes that triggers the unrest and whether there was any outside influence.

Commissioner of Prisons and Spokesman A.C. Gajanayake told Daily FT that some of the prison’s most critical facilities had been either destroyed or severely damaged.

‘The kitchen has been completely destroyed. The biggest damage is to the boiler system, which was deliberately set on fire,’ he said.

The prison hospital also suffered extensive damage, with the Outpatient Department (OPD), drug stores and dental unit completely destroyed, including the costly dental chair. Roofs of several buildings were also damaged after inmates hurled stones during the violence, he said.

According to Gajanayake, the prison library, Chief Jailor’s office and other facilities like workshops were set ablaze, destroying computers and records relating to inmates under the home leave and licence schemes.

A newly-established rehabilitation office, which was opened only on the same day with foreign funding through the Prison Welfare to conduct rehabilitation program for inmates, was also completely destroyed.

He said that the prison’s office, which maintained records relating to disciplinary action and inmate transfers, was reduced to ashes, forcing officials to redocument records from scratch.

‘The prison industries section also suffered heavy losses. Machinery used for weaving, woodwork and garment production, much of it donated through United Nations-funded projects, was either burnt or vandalised,’ he claimed.

‘The weaving unit has been completely reduced to ashes,’ Gajanayake said, adding that the total financial loss is yet to be determined because the value of specialised equipment, including the dental chair and industrial machinery at the tailoring and wood work units of the prison, has not yet been assessed.

Although inmates had damaged cell doors during the unrest, repairs are already underway to provide them accommodation.

According to Gajanayake, cooked meals are being supplied daily from the Colombo Remand Prison while medicines are being brought in from outside institutions to ensure continuity of healthcare services.

Although some records may be available at Prison Headquarters, officials now face the enormous task of recreating documentation relating to inmate rehabilitation programs under severe staff shortages. He confirmed that the prison’s inmate registration office remained unharmed during the unrest.

‘It is unfortunate that the inmates destroyed facilities that had been established for their own benefit,’ Gajanayake said.

He said that 104 inmates have been transferred to the Dumbara, Welikada, Boossa, Kalutara, Badulla, Batticaloa and Polonnaruwa prisons following the unrest while all remaining inmates continue to be housed at Mahara Prison remaining cells, which were not damaged.

According to Prison Department data, Mahara Prison, which has the capacity only to accommodate 991 inmates, is sheltering 4,447 prisoners.

He noted that a significant proportion of inmates at Mahara Prison are remandees, with the majority facing drug-related charges.

President Anura Kumara Dissanayake has instructed officials to review underutilised State assets, prioritise essential public investment projects, and improve implementation of infrastructure programs as part of pre-Budget discussions on the Public Administration, Provincial Councils and Local Government Ministry, according to the President’s Office.

The discussion reviewed the progress of projects implemented under the Ministry’s 2026 Budget allocations and considered proposals for the 2027 Budget, covering Rs. 60,430.04 million in capital expenditure and Rs. 706,226.83 million in recurrent expenditure across the Public Administration, Home Affairs, and Local Government sectors.

According to the President’s Office, Finance Ministry officials informed the meeting that more than 2,000 underutilised Government buildings exist across the country.

President Dissanayake instructed officials to conduct a comprehensive assessment of existing construction projects and prioritise only those considered essential.

The meeting also reviewed the progress of rural small bridge development projects implemented through local authorities.

Officials said Rs. 6,793 million is expected to be allocated for the program during 2026-2029, while projects financed under the Rs. 1,050 million allocation provided for 2026 had achieved 29% progress.

The President instructed officials to implement the projects more efficiently, taking into consideration the priorities identified by district coordination committees and the importance of the program, according to the President’s Office.

The review also covered the Greater Colombo Wastewater Management Project, implemented intermittently since 2015. The President instructed all relevant institutions to jointly prepare a comprehensive plan covering both the project and the overall drainage system within the Colombo Municipal Council area.

Special attention was also given to the Government’s digitalisation program.

The President instructed officials to identify services currently provided through District and Divisional Secretariats that could be delivered through digital platforms and to submit a report on the findings within the coming months.

According to the President’s Office, President Dissanayake also instructed officials to prepare a plan to transform regional administrative units into development-oriented institutions capable of supporting social and economic progress at the local level.

He observed that while Sri Lanka’s administrative system had remained in place for several decades, many public issues continued to remain unresolved. Although the existing framework could continue with incremental reforms, he said the public expected a broader transformation of the administrative system and emphasised that the process should begin by encouraging wider discussion within the public administration sector.

The meeting also reviewed construction of District Secretariat complexes in Ampara, Batticaloa, Kegalle, and Polonnaruwa, Divisional Secretariat offices in Kalutara, Pitabeddara, Angunakolapelessa, Ratmalana, Kotte, and Kolonnawa, the operations of the Local Loan and Development Fund, activities of the Department of Pensions and the Department of Registration of Persons, and progress in repurposing former ministerial residences and official bungalows for economically productive purposes.

According to the President’s Office, the President instructed officials to expedite the utilisation of those properties to maximise returns from public assets, while discussions also covered strengthening local authorities through improved facilities, revenue-generating capacity, and training for newly recruited officers.

Parliament’s Committee on Public Finance (CoPF) has approved a Rs. 71.7 billion supplementary allocation to finance the Government’s relief package aimed at mitigating the economic impact of the conflict in the Middle East, with the bulk of the funding directed towards maintaining fuel supplies and cushioning higher import costs.

The Committee, chaired by MP Dr. Harsha de Silva, approved Supplementary Estimate No. 03 of 2026 after reviewing the allocations and the proposed utilisation of the funds during a meeting held on 28 July, the Parliament Secretariat said yesterday.

Officials told the Committee that the largest allocation, Rs. 52.8 billion, had been earmarked for the petroleum sector to offset potential losses arising from higher fuel landing costs and ensure the uninterrupted supply of fuel, thereby preventing shortages.

The Committee was informed that the Rs. 71.7 billion package comprises two components. The first is Rs. 52.8 billion reallocated to settle payments relating to relief measures, including fuel subsidies provided during May and June 2026. The second is Rs. 18.9 billion reallocated to replenish the annual Budget contingency reserve after it was used to finance the April 2026 fuel subsidy for the Ceylon Petroleum Corporation (CPC) and other fuel suppliers, fertiliser subsidies for smallholder tea growers, and assistance to the fisheries sector.

Officials said the supplementary estimate would not increase either the Government’s expenditure ceiling or borrowing limit for 2026, noting that it represents a reallocation of previously approved budgetary provisions rather than new spending.

The Committee was also informed that the entire Rs. 71.7 billion allocation would be financed from the unutilised balance of the Rs. 500 billion Supplementary Estimate No. 01 of 2026, which had been approved to finance relief and recovery following Cyclone Ditwah. As at 30 June 2026, Rs. 243.9 billion of that allocation had been utilised.

According to the Committee, the fuel subsidy should be viewed as a temporary consumer relief measure rather than a subsidy to fuel companies.

Officials disclosed that fuel suppliers, including the CPC, received subsidies totalling approximately Rs. 20,507 million for April 2026 alone. Of that amount, Rs. 15,000 million was allocated to the CPC, Rs. 2,340 million to Lanka IOC PLC, Rs. 1,501 million to Sinopec, and Rs. 1,666 million to RM Parks.

The Committee also reviewed the broader allocation of the relief package, under which Rs. 15 billion has been allocated to the Ceylon Electricity Board, Rs. 8.2 billion for the Aswesuma welfare program, Rs. 3 billion to support agricultural activities during the Yala cultivation season, Rs. 2.2 billion for smallholder plantation farmers, and Rs. 1.2 billion for the fisheries sector.

The Road Development Authority also briefed the Committee on reconstruction work following Cyclone Ditwah.

Officials said the Governments of India and China had pledged assistance for rebuilding damaged bridges, while construction of the Galagedara and Rambukkana interchanges on the Central Expressway is expected to be completed by the end of 2028.

The Committee was also informed that tenders had been called for the electricity supply system for the expressway network and that work is expected to commence within the next three months.

The CoPF also discussed the potential impact of the El Niño weather phenomenon, with Dr. de Silva emphasising the need to strengthen the Disaster Management Statutory Fund to improve the country’s capacity to respond to future climate-related events.

In addition, the Committee held discussions on the determination of the Auditor General’s salary and broader public sector salary structures, deciding to continue deliberations before reaching a final decision.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has filed indictments before the Colombo High Court against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, and former Navy Commander Admiral of the Fleet Wasantha Karannagoda over alleged corruption-related offences.

According to the indictments filed by CIABOC, Karannagoda is accused of causing a loss to the State by allegedly facilitating Yoshitha Rajapaksa’s participation in the Royal Navy Young Officers’ Course at the Royal Navy Training College in the United Kingdom without lawful authority while serving as Commander of the Sri Lanka Navy.

The alleged conduct relates to the period during which Karannagoda held the position of Navy Commander, with CIABOC alleging that the course opportunity was provided without the required authority.

Yoshitha Rajapaksa and Karannagoda have been named as accused in the proceedings before the Colombo High Court.

The filing of indictments marks the commencement of court proceedings, with the allegations to be determined through the judicial process.

The North Central Province Badminton Association (NCPBA) together with Ceylon Masters Badminton (CMB) are now accepting entries for the NCPBA All-Island Open Badminton Championships 2026, scheduled to take place from 24 to 30 August concurrently at the Sports Department Indoor Stadium and Mike Cooke Indoor Stadium in Anuradhapura. Organised by the Northern Central Province Badminton Association, in conjunction with Ceylon Masters Badminton the seven-day event is a National Ranking Level 1 competition sanctioned by Sri Lanka Badminton (SLB), where the country’s top ranked shuttlers are expected to compete under different categories.

The championship will feature a wide range of events from Under-11 to Under-19 in the Junior category and Over-30 to Over-70 in the Senior category, including three Combined Age groups of 100+ for Veterans. However, the main attraction of the competition will be the Open events comprising of Men’s and Women’s Singles, Doubles and Mixed Doubles, with the losers of Men’s and Women’s Singles from their first games guaranteed a passage to the Plate Segment.

The opening ceremony is expected to take place on 24 August at 9 a.m., and will be followed by the preliminary rounds, leading up to the quarter-finals and semi-finals by 28 August. The excitement will continue on 29 and 30 August with the highly anticipated semi-finals and final matches, concluding with the Closing Ceremony to mark the culmination of the CMB assisted NCPBA All-Island Open Championship 2026.

The main draw seeding will be determined based on SLB Ranking as of 16 August, followed by the draw on 19 August at the Sri Lanka Badminton Headquarters, No.28, Maitland Place, Colombo 7. Entries will close on 14 August at noon. Entries can be submitted online or by contacting Tournament Director Renu Chandrika de Silva on 0777443949.

A combined prize money of Rs. 1 million for all events based on the number of entries will be on offer, in addition to trophies, medals and certificates guaranteed for winners, runners-up and semi-finalists of each event of the tournament. Junior winners will receive appropriate gifts instead of prize money, according to the decision taken by the tournament organisers.

All details of the NCPBA All-Island Open Badminton Championship 2026 are available in the prospectus published in the SLB website. The tournament solely assisted by Ceylon Masters Badminton, who has come on board with the North Central Province Badminton Association to ensure a top quality and successful competition.

President Anura Kumara Dissanayake expressed his commitment to abolishing the Executive Presidency and called for a broad national consensus before embarking on constitutional reform, telling an alliance of Tamil and Muslim political parties that Sri Lanka should prioritise an inclusive national dialogue over a hastily drafted constitutional amendment.

Representatives of an alliance comprising six Tamil and Muslim political parties met the President at the Presidential Secretariat yesterday, where discussions focused on constitutional reform, Provincial Council elections, land issues and development challenges affecting the Northern, Eastern and Malayagam (Hill Country Tamil) communities, according to the President’s Office.

According to the President’s Office, the alliance urged the Government to introduce a new Constitution, hold Provincial Council elections and address issues affecting Tamil-speaking communities.

The Provincial Council elections featured prominently in the discussions, with President Dissanayake noting that Parliament had appointed a Select Committee to examine matters relating to the conduct of the elections and saying he expected to engage with the Committee on the issues that had arisen.

The Government’s proposal to introduce a new Constitution, as outlined in its election manifesto, was also discussed.

According to the President’s Office, Ilankai Tamil Arasu Kachchi (ITAK) General Secretary M.A. Sumanthiran said drafting a new Constitution should be undertaken through a broad national dialogue rather than by a single political party, arguing that the process should address the concerns of Sri Lanka’s diverse communities.

Responding to the proposal, President Dissanayake reiterated that the Government remained committed to constitutional reform and the abolition of the Executive Presidency but said the immediate priority was to build a new national consensus.

According to the President’s Office, the President said the Government sought to build a country in which people acted together as Sri Lankans rather than along ethnic lines, adding that his vision was for a system of governance accountable to Parliament.

The meeting also discussed the Government’s proposal to grant estate workers and estate staff legal ownership of 10-perch residential land plots.

Tamil Progressive Alliance representative V. Radhakrishnan expressed hope that the current administration would succeed in implementing a measure that previous governments had been unable to introduce because of opposition from plantation companies, according to the President’s Office.

President Dissanayake said plantation lease agreements with the State, which are due for renewal before 2042, would provide an opportunity to incorporate provisions granting the Malayagam community legal ownership of residential land.

M.A.M. Tahir, Selvam Adaikalanathan, Rauff Hakeem, Jeevan Thondaman

The President also said landslide risks in the Central Highlands required environmentally sustainable solutions and noted that a dedicated authority had already been established to address those issues as part of broader efforts to improve conditions for the Malayagam community. Housing and economic assistance for estate communities also featured in the discussions.

According to the President’s Office, Ceylon Workers’ Congress Leader Jeevan Thondaman said beneficiaries of Indian-assisted housing schemes continued to face difficulties meeting the costs of essential services, including water and electricity, despite receiving ownership of their homes.

In response, President Dissanayake said proposals had already been made to establish a new assistance program jointly through the Thondaman Foundation and the Nevada Foundation to provide economic support to the community. He also said the Government intends to allocate a higher level of funding for the Plantation and Community Infrastructure Ministry in the 2027 Budget than was provided this year.

The President also reaffirmed the Government’s commitment to resolving longstanding land issues in the Northern Province and Central Highlands, stating that land should rightfully belong to the people and noting that several commissions had already been appointed to address those matters.

Representatives of the alliance also raised concerns over the Provincial Council electoral system, the work of the Delimitation Commission and what they described as outdated policies of the Department of Archaeology, the Department of Forest Conservation and the Mahaweli Authority affecting communities in the Northern and Eastern Provinces.

The United Nations Development Program (UNDP) is beginning the design of its next five-year Country Program for Sri Lanka, with employment creation, economic prosperity, and faster implementation of reforms emerging as key priorities to support the country’s transition from economic stabilisation to sustainable growth.

During her two-day mission to Sri Lanka, in an exclusive interview with the Daily FT yesterday, the Sri Lankan-born senior UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific Kanni Wignaraja said the new program, which will be developed over the coming year through countrywide consultations before being presented to the UNDP Executive Board for approval next August, will focus on helping the country build long-term resilience while addressing structural challenges that continue to constrain growth.

Noting the country’s recovery had been ‘astounding,’ she stressed that stabilisation alone would not deliver lasting prosperity.

‘The question now is how we expand the economic pie,’ she said, noting that Sri Lanka must sustain inclusive growth while ensuring more people benefit from the recovery.

She said one consistent message emerging from discussions with Government leaders, development partners, and other stakeholders was that reforms now need to move much faster.

‘The key is implementation faster,’ Wignaraja said, calling for fewer bureaucratic layers, shorter approval processes, and quicker delivery of priority reforms and investments. ‘You can’t stay in this spot now. We have to build back faster, not just better.’

She said maintaining macroeconomic stability remained essential for preserving investor confidence, but argued that Sri Lanka’s next phase of development would depend on improving competitiveness, raising productivity, and creating quality employment opportunities.

Jobs will therefore become one of the defining pillars of the UNDP’s next program.

Wignaraja pointed to the growing outflow of young skilled Sri Lankans as one of the country’s biggest long-term development challenges. While overseas employment generates income, skills, and remittances, it also leaves critical gaps within the domestic workforce.

‘The challenge is how you encourage young people to go out, gain skills and income, but also attract them back to contribute to the country that invested in their education,’ she said.

At the same time, Sri Lanka must continue retraining and reskilling its workforce while exploring ways to address shortages in key sectors.

She described migration as a global phenomenon rather than one unique to Sri Lanka, noting that even the most successful countries create a circular flow of talent, where people leave to acquire new experience before returning with skills, technology, finance, and international networks that strengthen the domestic economy.

The urgency is heightened by Sri Lanka’s rapidly ageing population, she noted.

Although the country has regained upper-middle-income status, Wignaraja said many households have yet to experience the benefits associated with that classification.

‘The objective is to become more prosperous before you grow much older,’ she observed, warning that otherwise demographic pressures would place increasing strain on pensions, healthcare, and social protection systems.

Alongside employment, the next UNDP Country Program is expected to prioritise energy security, water security, climate action, governance reforms, and innovative financing, providing an integrated framework to support Sri Lanka’s next stage of development.

During her visit, Wignaraja met Government leaders, development partners, the private sector, and other stakeholders, whilst sharing the UNDP’s latest Sri Lanka policy brief, ‘Redefining Resilience in an Era of Compound Shocks,’ outlining strategies to strengthen resilience against intersecting economic, climate, and geopolitical risks.

Texworld NYC, Apparel Sourcing NYC, and Home Textiles Sourcing NYC-the East Coast’s premier textile and apparel sourcing events-concluded successfully at the Jacob K. Javits Convention Center in New York City, USA, from 29-31 July 2026. Recognised as the largest textile and apparel sourcing trade show on the East Coast, the exhibitions brought together more than 425 international exhibitors from 20 countries, providing a leading platform for ethical sourcing, sustainability, and global business opportunities.

The Summer 2026 edition marked the 20th anniversary of Texworld NYC, celebrating two decades of connecting the global textile industry and fostering international collaboration.

Omsoha International Ltd., represented Sri Lanka at the exhibition, showcasing its diverse range of textile and apparel products to international buyers while highlighting the country’s manufacturing capabilities and export potential.

The company’s participation highlighted Sri Lanka’s growing presence in the global textile and apparel market while creating opportunities to strengthen business relationships with international buyers and expand its export reach.

The Department of Fisheries has warned that 15 of the 17 empty shipping containers that fell into the sea off the Port of Colombo remain missing.