Category: Daily Financial Times

During her 107-day presidential election campaign, Kamala Harris (having inherited the Democratic Party candidacy after the precipitous departure of Joe Biden) tried to project herself as the true change agent. That image was blown to smithereens on the talk-show ‘The View’, just a month before the election. Asked what she would have done differently from President Biden in the last four years, she answered: ‘There’s not a thing that comes to mind.’

Her ‘Not a thing’ answer horrified Democrats, thrilled Republicans (who used it to create many a campaign ad), and marked a turning point in the election. In her recently released memoir, ‘107 Days’, Harris compares her answer to pulling the pin of a hand grenade. To the voters, her answer brought to mind the seminal failures of the Biden presidency, from his inability to deal with the affordability crisis to his enabling Israel’s genocide in Gaza. Many of those voters, believing in Donald Trump’s promises to curb inflation and bring peace to Gaza, abandoned both Kamala Harris and the Democratic Party in November 2024.

In Sri Lanka, Anura Kumara Disanayake contested the September 2024 election as the 100% change candidate, and spent most of his first year as the continuance president.

Disanayake came into office just as the country was crawling out of the economic abyss Hurricane Gotabaya had flung it into. In September 2024, the biggest fear about a Disanayake presidency was that it will bring about a Gotabaya 201, another cyclone of bad decisions wrecking the fragile recovery achieved by Ranil Wickremesinghe. In September 2025, a key criticism President Disanayake’s first year is not inane adventurism but unnecessary timorousness.

President Disanayake, in his first UN speech, focused on the need to combat global poverty. No such focus was discernible in national policymaking in the past year. Lanka’s poverty explosion wasn’t his (or Ranil Wickremesinghe’s) creation but a Rajapaksa construct. According to the ADB, ‘Sri Lanka’s economic crisis led to a sharp increase in poverty and socio-economic vulnerability. Poverty levels rose to 25.0% in 2022 from 13.1% in 2021’ (https://www.adb.org/sites/default/files/linked-documents/57035-001-sprss.pdf). Poverty increased still further in 2023 to 27.5% but decreased to 24.9% in 2024.

As the World Bank emphasises in its latest report, ‘Sri Lanka Public Finance Review 2025 – Towards a Balanced Fiscal Adjustment’, a disproportionate share of the burden of the crisis and the recovery was borne not by rich or even middleclass Lankans but by poor Lankans: ‘The fiscal adjustment has also disproportionately impacted the poor, who continue to grapple with job and income losses. Food prices remain more than double their pre-crisis levels and real wages are yet to recover. In response.many households have scaled back spending on human capital, particularly on nutrition, healthcare, and education’ (https://documents1.worldbank.org/curated/en/099090825205582722/pdf/P501002-32a393bd-fa6b-497c-b777-69fa8e12079a.pdf).

A quarter of the populace subsisting below the poverty line; over half of the population (55.7%) being multi-dimensionally vulnerable. These are perilous problems in need of urgent solutions. Add to that 16% of households being food insecure (especially female-headed households); and more than half of households using such debilitating coping mechanisms as skipping meals, eating less preferred food or limiting portion sizes. Between 2021 and 2024, malnutrition among underweight children under 5 years increased from 12.2% to 17%; stunting among children under 5 years increased from 7.4% to 10.5% ((https://www.ohchr.org/sites/default/files/documents/hrbodies/hrcouncil/sessions-regular/session60/advance-version/a-hrc-60-21-auv.pdf).

The problem is not so much the IMF as Lankan policymakers’ lack of interest in the problem. For instance, the IMF has set a minimum target of 0.7% of the GDP for social safety net spending. This target was not met either in 2023 or 2024. We spent less on poverty alleviation not because the IMF ordered us to but because we didn’t care enough and prioritise enough. The austerity trap was of our own making.

In his first year, President Disanayake managed to maintain growth by taking the difficult political decision of sticking to the economic trajectory charted by Ranil Wickremesinghe (while strenuously denying that authorship). But no such political will was discernible in dealing with poverty (and inequality). It is a strange disconnect for the leader of a party which flies the hammer and sickle banner outside its glitzy headquarters.

Sacred cows, from military costs to Israel

In his UN speech, President Disanayake lamented the trillions spent on weapons of war while poverty rages across the globe, a murderous pandemic. Rightly so; but his words would have carried more weight if his own Government had taken even a baby step to prune Lanka’s gargantuan defence budget in the last one year.

According to the latest available data, Sri Lanka is among the 50 most militarised countries in the world, ranking 48 in the Global Militarisation Index (GMI). And Sri Lanka failed to reach anywhere near the top 50 countries in Social Progress Index, ranking a very low 74. The war has been over for a decade and a half. Spending more on defence than on poverty alleviation and other measures to ensure social stability and cohesion makes no sense, economically, politically, or even from a national defence point to view. President Disanayake can set this right, but has opted not to, not in his 2025 Budget nor in his 2026 Budget estimates.

He has been equally reluctant to tax the rich, occupying a space way to the right of both the IMF and the World Bank.

The IMF has repeatedly underscored the need to broaden the tax base in order to reduce reliance on poverty-increasing indirect taxes. Since the latest Structural Adjustment Programme began, the IMF has also been urging Colombo to introduce a wealth tax and an inheritance tax.

The World Bank, in its new report, warns that the extreme imbalance in direct: indirect tax ratio (and the resultant dependence on indirect taxes which cuts into purchasing power and living conditions of poorer Lankans) can hamper the Government’s effort to reach a growth target of 6%. It advocates a minimum effective rate of 15% Corporate Income Tax (CIT) on all companies, both domestic and international (with a 30% statutory nominal rate). It also urges the Government to improve compliance at the top end of income distribution and estimates that focusing on net higher earning individuals could increase Personal Income Tax (PIT) revenue by a massive 169% and PAYE revenue by 75%.

The Wickremesinghe administration’s decision to increase direct taxes was falsely decried by the then Opposition, including the JVP, as anti-people. As the latest World Bank report demonstrates, this increase impacted primarily on the richest 10% of Lankans (unlike the January 2024 VAT hike and exemption removal which increased poverty by 2.2%). Households in the richest decile bore 76% of the PAYE tax burden and 66% of the PIT burden. Increased direct taxes, together with increased transfers, reduced poverty by 6.4% in 2024.

Unfortunately, the Government is as unlikely to increase direct taxes as it is to reduce military expenditure. It has also backtracked on its campaign promise to increase daily wage in the estate sector to Rs. 2,000 and subsequent Budget pledge to increase estate worker daily wage to Rs. 1,700. Incidentally, it will be instructive to see whether the Government moves beyond rhetoric to ratify even one of the 53 ILO Conventions Sri Lanka has evaded ratifying, especially such fundamental ones as C155 (Occupational Safety and Health Convention, 1981) and C187 (Promotional Framework for Occupational Safety and Health Convention, 2006).

Contrary to its change-centric rhetoric and transformational promises, the Government shows a debilitating inability to take on entrenched political, business, military or religious interests. For instance, throughout the campaign, and even before, the NPP/JVP promised to decriminalise homosexuality by scrapping colonial era sodomy law. But once in Government, it went mute on the promise, obviously due to its unwillingness to upset temple and church dovecots. The resistance to direct taxes (especially wealth tax and inheritance tax) is also likely to come from within the ruling party (JVP) and the ruling coalition NPP. NPP/JVP ministers and parliamentarians might march under the proletarian banner on International Workers Day but their asset declarations place them firmly within property-owning and middle/high income cohorts. Why would they back taxation measures which would hurt their personal finances, even if doing so would benefit Sri Lanka as a whole and non-privileged Lankans in particular.

Another reason for Government’s curious timorousness might be an insufficient understanding of socio-economic and political realities, beyond familiar ideological matrixes. Take, for instance, the Government’s fear of antagonising Israel. Is it due to the mistaken belief that if we utter a word of criticism, Sri Lanka will lose Israeli jobs and Israeli tourists? If so, the Government obviously doesn’t understand that Israel is today a near-pariah state. There are very few countries in the world (including countries far poorer than us) who will send their citizens to work in a state which is morally abhorrent and unsafe (due to its penchant to start regional wars). Similarly, there are very few countries where Israeli tourists feel welcome and protected.

As Israeli columnist Dani Bar On wrote, ‘I escaped to a Greek Nudist Paradise only to discover Israelis are hated there too.’ He went to the remote Samothrace in Northern Aegean, only to encounter telling graffiti: ‘A vacation from Genocide – Not here’ (Haaretz – 18.9.2025). Sri Lanka is probably the only country in the world which bails out Israeli tourists who attack its own citizens (contrary to Sinhala-Buddhist extremist propaganda, the hotelier assaulted by two Israeli tourists in Arugam Bay is a Sinhalese). In this extremely unfavourable global context, Israel needs us more than we need Israel, a truth as alien to the NPP/JVP mindset as the desirability of direct taxes.

But the Government is ahead on two scores: its seemingly sincere desire to tackle waste and corruption; and the Opposition.

This unprecedented Opposition

Former Secretary General of Parliament Nihal Seneviratne’s memoir, ‘Memories of 33 Years in Parliament’, provides glimpses of a past which seems more akin to another planet than another country. During his long career, he often acted as secretary to Lankan parliamentary delegations on international visits.

‘I recall one of our members of an Inter-Parliamentary Union delegations in a faraway Scandinavian country coming to see me with what he called a ‘huge problem.’ He had an hour long telephone call to his spouse in Sri Lanka. He told me she had been in a delicate state of health and he needed to speak to her. He had then been hit with a telephone bill amounting to over 100 Euros. He wanted me to settle this bill. I then very gently reminded him that at the start of the trip, I had very politely told all delegates that any personal overseas telephone calls would be on their own account. He wanted me to speak to our ambassador in that country and ask him to foot the bill which I politely refused to do. He finally had to pay the bill himself’ (excerpted in ‘The Sunday Island’ – 2.3.2025).

That was the country we had and lost. Lost to such a degree that when the NPP/JVP Government introduced the long awaited bill to scrap presidential privileges, the Opposition, instead of backing it, took the coward’s way out by staying away from the chamber during voting time.

During the time of the pandemic and the economic crisis, the Government spent a staggering sum of Rs. 421 million on renovating Mahinda Rajapaksa’s presidential retirement evidence. Rajapaksa obtained permission for this project via two cabinet papers which he presented in 2020 and 2021 in his capacity as Prime Minister (he was also the Minister of Finance). According to information obtained by the Daily Mirror under an RTI request, over Rs. 15 million was spent on bathroom accessories, over 15 million for granite laying and almost 32 million for electrical work (https://www.dailymirror.lk/expose/Renovation-of-MRs-official-residence-No-proof-to-show-Govt-procurement-guidelines-were-followed-during-purchases-through-Lanka-Building-Materials-Corporation-Limited/333-304174).

This horrendous expenditure was made under the Presidential Privileges Act. The Opposition was so lost to all sense, it didn’t realise how the Rajapaksas abused this Act and that repealing it was a demand by many who voted for Sajith Premadasa/SJB and Ranil Wickremesinghe/UNP in the last two elections.

The non-SLPP Opposition went onto trump that inanity with an obscenity, joining hands with the Rajapaksas at the UNP convention. And applauding Sagara Kariyawasam when he came out with some of the most shameful lines ever with customary shamelessness: ‘Our two camps made the same major mistake. Both of us, in order to gain power, ignored the services rendered by our opponents to the country.pointed our finger at the opposite side and called them ‘Thief, Thief, Thief’, with no proof, with no reason. That error was committed by us and by you’ (https://www.youtube.com/watch?v=u02YkZdqdEw).

With one blow, he did the Government’s job for it, by labelling the entire Opposition untruthful, untrustworthy, and opportunistic, a bunch of imposters who would say anything, do anything for power. He – and his audience – lacked the sense to realise what a gift they presented to a Government squirming under the verbal faux pas of its ministers.

Ganga Addara isn’t just another concert; it’s a celebration of Sri Lankan music with a powerful blend of tradition and innovation, taking place on 2 October at the Lionel Wendt Theatre.

At the heart of the evening is the specially expanded DLB Squared Band, featuring sitar, tabla, along with contemporary instruments. Together, they will give beloved local classics a captivating fusion of tradition and innovation, promising audiences an exhilarating musical journey.

For a visual complement to the music, the brothers will perform in outfits designed exclusively through a collaboration between Sonali Dharmawardena and Asanka de Mel of LOVI. Created especially for the concert, the designs embody a unique blend of heritage and modernity.

‘With Ganga Addara, we wanted to honour Sri Lanka’s musical roots while daring to present them in a new way,’ said Ishan De Lanerolle. ‘The sitar, the tabla, the band, and even our stage wear are all about blending heritage with innovation for one unforgettable night. We’ll also be performing completely unamplified-which is a rare challenge with so many instruments on stage-but that’s the thrill of the journey! The stage itself will be set very differently to create a truly immersive experience, and we’re deeply grateful to Sonali Dharmawardena and Asanka of LOVI for coming together to design these special outfits.’

The evening promises a colourful, vibrant, and immersive atmosphere, making Ganga Addara a celebration of Sri Lankan music and style.

Tickets, priced from Rs. 1,500 (balcony) to Rs. 10,000 (premium stalls), are moving fast with stalls nearly sold out. For reservations, call, text or WhatsApp 0777 996 991.

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI), which returned to positive territory in August, continued its upward trend toward the inflation target in September 2025.

The Central Bank said, headline inflation (Y-o-Y) accelerated to 1.5% in September from 1.2% in August, in line with the Central Bank’s near-term projections.

It added that the food inflation (Y-o-Y) accelerated to 2.9% in September from 2% registered in August, while the non-food inflation (Y-o-Y) decelerated marginally to 0.7% in September from 0.8% in August.

On a month-on-month basis, the CCPI increased by 0.17% in September 2025, for which the food category contributed 0.10 percentage points and the non-food category contributed 0.07 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, remained unchanged at 2% in September 2025.

‘Realised quarterly average headline inflation for Q3-2025 is in line with Central Bank’s projections. The latest projections show a gradual acceleration of inflation in the period ahead towards the target of 5%, with the support of appropriate policies,’ the CBSL added.

AIA Insurance yesterday announced its continued dominance in the life insurance industry, being recognised as Sri Lanka’s #1 MDRT (Million Dollar Round Table) company with the highest number of MDRT members.

It said with a remarkable 332 MDRT Members in 2025- across Agency Distribution (including Alternate) and Partnership Distribution sales channels-AIA continues to set the standard for excellence, professionalism, and customer-centric service in the insurance industry.

MDRT membership is internationally recognised as the pinnacle of success in the life insurance and financial services industry. To qualify, advisors must meet stringent requirements in premium generation, demonstrate exceptional professional knowledge, uphold the highest ethical standards, and deliver outstanding client service. Being named Sri Lanka’s #1 MDRT company reinforces AIA’s role as a trusted leader in empowering Sri Lankans to secure their financial futures, protect what matters most, and live healthier, longer, better lives.

AIA Sri Lanka Director and CEO Chathuri Munaweera said: ‘AIA is driven by the purpose to help people live healthier, longer, better lives. Achieving the #1 MDRT ranking in Sri Lanka is a powerful validation of the dedication and impact of our sales personnel from agency distribution, agency alternate and partnership distribution channels. Their ability to consistently deliver world-class service, values that they uphold and the shared commitment to keep living them are truly inspiring.’ AIA said its success in Sri Lanka is part of a larger story. In 2025, AIA Group was once again recognised as the #1 MDRT multinational company in the world, marking its 11th consecutive year at the top. In addition to AIA’s global #1 MDRT status, 11 of its markets, including Hong Kong SAR, China, Thailand, India, Singapore, Malaysia, Macau SAR, Myanmar and Sri Lanka achieved #1 MDRT status, with the highest number of qualifying insurance agents in their respective markets.

The overnight net liquidity surplus in the inter-bank money market surged to Rs. 198.79 billion yesterday, reaching the highest level since 05 June. An amount of Rs. 203.36 billion was deposited at Central Banks SDFR (Standing Deposit Facility Rate) of 7.25%, while an amount of Rs. 4.57 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 8.25%.

The weighted average rates on call money and repo were registered at 7.87% and 7.88% respectively.

Meanwhile, the Treasury Bills auction scheduled to be conducted today will have a total offered amount of Rs. 43 billion, an increase of Rs. 5.00 billion over the previous week. The auction will consist of Rs. 8.00 billion on the 91-day, Rs. 25.00 billion on the 182-day and Rs. 10.00 billion on the 364-day maturities.

For context, at the previous weekly Treasury Bill auction (held on 24 September) the weighted average yields remained unchanged. Accordingly, the rate on the 91-day, 182-day and 364-day tenors remained at 7.57%, 7.89% and 8.02% respectively. This marks the 10th week where T-Bill weighted averages have stayed mostly unchanged at auctions. In terms of subscription, 90.41% of the total offered amount was raised, with successful bids amounting to Rs. 34.35 billion against the Rs. 38.00 billion on offer in the first phase of competitive bidding. This marked the fifth consecutive auction that fell short of fully raising the targeted amount. Subsequent to the T-Bill auction an additional amount of Rs. 275 million was raised at the second phase.

The secondary Bond market remained largely subdued for a second consecutive day. Market participants adopted a watchful stance, leaving conditions at a virtual standstill for much of the session. Yields, however, edged up marginally during trading, with two-way quotes closing the day slightly up.

The 01.02.26 maturity traded at the rate of 8.00% and the 15.09.27 maturity was seen trading at the rate of 8.77%. The 15.03.28 and 01.05.28 maturities were seen trading at the rates of 9.05% and 9.10% respectively. The 15.06.29, 15.09.29 and 15.12.29 maturities were seen trading at the rates of 9.48%, 9.50% and 9.60% respectively. The 01.07.32 and 01.10.32 maturities were seen trading at the rates of 10.65% and 10.40% respectively. The 15.09.34 maturity traded between the rates of 10.82%-10.80%.

The Colombo Consumer Price Index (CCPI; Base 2021=100) for the month of September was recorded at a positive + 1.5% on its point to point. This is as against its previous month’s figure of + 1.20%, which was incidentally the first instance of positive inflation in 11 months up to that point. The annual average was registered at -1.4% as at September.

The total secondary market Treasury Bond/Bill transacted volume for 29 September was Rs. 2.30 billion.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day steady Rs. 302.55/302.60 unchanged against the previous day.

The total USD/LKR traded volume for 29 September was $ 103.05 million.

Last week, at the UN General Assembly, the UK, France, Canada and Australia recognised Palestine as an independent, sovereign state. With the latest development, 157 of 193 UN member states recognise Palestine as a sovereign, independent country. The acknowledgement of statehood of Palestine by countries that have been sympathetic to Israel in the past represents the growing international isolation of the Jewish state as well as the overwhelming, international opposition towards Israel’s military offensive in Gaza.

At the recent Doha Summit, representatives from the United Arab Emirates, Bahrain and Morocco – the Middle East nations that maintain diplomatic ties with Israel as part of the Abraham Accord – agreed to review diplomatic and economic relations with the beleaguered state.

In view of the massive international backlash Israel is facing as the war in Gaza escalates, Israeli Prime Minister Benjamin Netanyahu had warned his country could face isolation for years and has no choice but to stand on its own. Israel is currently encountering either partial or complete arms embargoes from France, the Netherlands, the UK, Spain, and Italy.

At least 67,000 people have been killed and another 167,000 have been wounded since the war in Gaza began in October 2023. Some international observers have opined the recognition of statehood by few countries in the West as a mere face-saving exercise in the wake of growing worldwide displeasure about the severe humanitarian catastrophe that is taking place in the Middle East.

Despite the overwhelming international censure, the US, Israel’s biggest ally, is firmly backing the Middle East state. Although former President Joe Biden was expressing a sense of reservation in terms of providing unconditional support to Israel during the latter stages of his tenure, the Trump administration has adopted a markedly pro-Israel stance.

Meanwhile, the UN General Assembly last month voted to endorse a Hamas-free government for Palestine. Israel and Palestine living side by side in peace with recognised borders has been advocated as the lasting and viable solution to one the most pressing and brutal conflicts in the world. However, Hamas has steadfastly refused to accept the existence of Israel. Many commentators in the Sri Lankan media who express their views about the conflict in the Middle East often overlook the atrocities committed by Hamas. Tactics and ideology of Hamas and its backers have been recognised as the foremost obstacle to peace in the region. In fact, the devastating two-year-long war began on 7 October 2023, when Hamas and other Palestinian militant groups launched an attack on Israel, in which 1,195 Israelis and foreign nationals, including 815 civilians, were killed while 251 were taken hostage.

Sri Lanka has been a staunch supporter of the cause of Palestine. The top political leaders of the NPP were enthusiastic supporters of Palestine before coming into power and opposed Israel vociferously. Nevertheless, critics have pointed out that since capturing power, the ruling political party has softened its stance on Israel. Surprisingly, the Ministry of Foreign Affairs in its statement about the Israeli airstrike on Qatar on 9 September did not even include the name of Israel.

The Trump administration shared a 21-point plan to bring permanent peace in Gaza few days ago on the sidelines of the UN General Assembly. It envisions the pathway for a state of Palestine while advocating for immediate release of Israeli hostages. Decisive and forceful action is imperative to bring lasting peace in the Middle East, and it requires sacrifices from both Israel and Palestine.

Singer Sri Lanka PLC, announced the launch of Huawei’s latest range of smart wearables and tablets, introducing world-class technology to both its retail network and wider national distribution channels.

The new lineup includes the Huawei Watch Fit 4, Huawei Band 10, Huawei FreeBuds SE2, and Huawei MatePad SE11, each meticulously engineered to meet the needs of both trendsetters to seasoned professionals who value style, innovation, and reliability.

Singer Sri Lanka PLC Group Managing Director Mahesh Wijewardene said, ‘Singer continues to bring the world’s leading technology brands to Sri Lankan youth consumers. With this latest Huawei lineup, we’re delivering far more than just devices; we’re offering tools that empower people to live smarter, healthier, and more connected lives. Each product has been selected to combine elegant design with advanced technology, so customers don’t have to choose between aesthetics and functionality.’

At the forefront of the range, the Huawei Watch Fit 4 offers next-level fitness tracking with professional-grade accuracy, an impressive 10-day battery life, and an ultra-slim design that’s equally suited for the gym or the office. Its vibrant AMOLED display ensures clear visibility even under bright sunlight, while its seamless compatibility with both Android and iOS devices makes it versatile for any user.

The Huawei Band 10 combines style and function with a skin-friendly fluororubber strap for all-day comfort. It offers advanced TruSleep analysis, stress monitoring through its wellbeing assistant, and AI-driven coaching tailored for swimming and running. With over 100 workout modes, it is designed for fitness enthusiasts who want to track performance in detail.

The Huawei FreeBuds SE2 complement this with up to 40 hours of battery life, crystal-clear sound powered by Huawei’s audio algorithms, and a lightweight, compact design for lasting comfort. With instant pairing, they make enjoying music and calls seamless and hassle-free.

Completing the lineup is the Huawei MatePad SE11, featuring a sleek metal unibody design for premium durability. Its expansive 11-inch eye-comfort full-view display is TÜV Rheinland-certified for low blue light and flicker-free performance, protecting users’ eyes during extended use. The large 7700mAh battery provides all-day productivity, and family-friendly features like Kids Corner and Growth Partner make it equally suitable for learning, entertainment, and creativity.

These devices can now be purchased across Singer’s island-wide retail outlets and through its extensive network of authorised distribution partners.

LB Finance PLC has taken a landmark step in its sustainability journey by becoming a signatory of the Partnership for Carbon Accounting Financials (PCAF), a global initiative that enables financial institutions to measure and disclose greenhouse gas (GHG) emissions linked to their lending and investment portfolios.

This milestone adds to LB Finance’s proud history of climate leadership. In 2013/14, the company became Sri Lanka’s first carbon conscious finance company, followed by another industry-first in 2015/16, when it was certified as the first carbon neutral company in Sri Lanka. Over the past few years, the company has steadily advanced its sustainability reporting, integrating GHG accounting into its disclosures.

In the financial year 2024/25, LB Finance made history in the local financial sector by publishing the financed emissions from its motor vehicle loan portfolio, calculated using the PCAF methodology and it was independently verified by Control Union Sri Lanka, ensuring credibility and transparency. The assessment confirmed a total carbon footprint of 36,934.07 tCO2e for 2024/25, with 27,245.12 tCO2e attributable to financed emissions from motor vehicle loans. Notably, this was achieved even before LB Finance became an official member of PCAF, reflecting its forward-thinking approach.

This year also marked another milestone, as LB Finance became the first financial institution in Sri Lanka to commit to the Science Based Targets initiative (SBTi) near-term and net-zero targets, aligning its strategy with the 1.5°C global warming pathway.

By joining PCAF, LB Finance gains access to a collaborative global platform of over 600 financial institutions worldwide, working together to standardise and enhance financed emissions accounting. This membership will allow LB Finance to deepen its GHG reporting, benchmark against global best practices, and accelerate its path towards meeting its ambitious climate goals.

LB Finance Managing Director Niroshan Udage said: ‘Our membership in PCAF marks a new chapter in LB Finance’s sustainability journey. Strengthening our GHG accounting practices is essential to aligning our financing activities with Sri Lanka’s climate commitments and the global transition to a low-carbon economy.’

PCAF APAC Coordinator Srinagesh Mavilati said: ‘We are excited for LB Finance to be part of the signatory community, and we are looking forward to continuing to collaborate with LB Finance on driving the standardisation of portfolio emissions accounting in Sri Lanka.’

Amana Bank recently opened its 36th and 37th self-banking centre in the towns of Maruthamunai and Natpiddimunai in the Eastern Province. With these two openings, Amana Bank’s footprint has expanded to 70 customer locations, which includes 33 fully fledged branches, reinforcing the Bank’s commitment to enhancing inclusivity, accessibility and convenience for customers across Sri Lanka.

The Maruthamunai self-banking centre, located at No. 253, Main Street, Maruthamunai – 03, and the Natpiddimunai self-banking centre, situated at No. 343/A/1, Main Street, Natpiddimunai – 04, offer customers 24/7 access to cash withdrawals, cash deposits and cheque deposits as well as bill payments through the Pay and Go facility.

The inauguration of the two centres was attended by Amana Bank’s Chief Operating Officer Imtiaz Iqbal, Treasury and Financial Institutions Vice President Harindra Obeyesekere, SME and Regional Branches Assistant Vice President Arshad Adhnan, Retail Sales and Acquisition Channels Head Mohamed Asmil, Kalmunai Branch Manager Mohamed Sameem, and Kalmunai Unity Square Branch Officer-in-Charge Mohamed Naimulla, together with local business representatives and residents.

Commenting on the opening Chief Operating Officer Imtiaz Iqbal stated ‘We are pleased to expand our customer touch points with the opening of these two new self-banking centres. This expansion reflects the growing demand for our people-friendly and development-focused banking model in the Eastern Province, where we now serve customers through 9 branches and 11 self-banking centres. Our goal is to bring banking services closer to communities, providing them with unmatched ease and convenience in their financial transactions. These new centres are also well-positioned to support the diverse banking needs of the local economy, including sectors such as paddy cultivation, fisheries, agriculture, poultry, and trading, thereby contributing to the region’s overall growth and prosperity.’

The varied public response to recent incidents ranging from the arrest of Ranil Wickremesinghe, former president and prominent politician of Sri Lanka to the assassination of Charlie Kirk, American right-wing political activist, evidence that our assessment of, and response to, events are primarily based on our like or dislike of the individual, or individuals, involved rather than on an objective and unemotional interpretation of the underlying facts. When we base our opinions and conclusions on our likes or dislikes of the individual rather than on the facts, we undermine the principles of fairness, justice, ethics, and integrity that underpin our society.

These responses are not a matter of momentary lapses in judgment. They are a fundamental corruption of our ethical framework. The shift from ‘what is right?’ to ‘who is involved?’ represents a dangerous regression that can lead to profound and lasting damage to our innate values and those values that were nurtured in us by our parents, teachers, spiritual leaders, and the generations before us. Till about 50 years ago, there was significant congruence in our interpretation of what was right and wrong.

My father was an example of one who expressed a straightforward binary assessment of an action, irrespective of who was involved. To him, there was a clear ‘right’ or ‘wrong’; a ‘black’ or a ‘white’. There were no greys or shades of grey. There were no fences to sit on. His views on a matter were based on his unbiased interpretation of facts, and such interpretation did not vary based on who was involved. Oft were the times when he found in favour of a third party over his immediate kith and kin. He had no qualms or hesitancy in telling his wife and/or his sons that they were wrong. Compare this with the current tendency of people protecting kith and kin even when they are blatantly at fault!

Principles like fairness, transparency, accountability, and objectivity were not created arbitrarily. They are the foundation and scaffolding of a just and functional society, providing a way to ensure that decisions are based on facts and the merit of those facts, rather than whim or bias. These principles have served us, and serve us, as a universal standard and a moral compass that guides our actions even when the path is difficult. They provide common ground, a shared language for what is acceptable and what is not. They are impersonal and are a bulwark against the inherent biases that plague human nature.

Erosion of fair play, transparency, ethicality, and objectivity

However, a random survey of global events raises questions about whether these principles remain valid. From the recent bribery scandal of software giant SAP to the indiscriminate killing of innocent civilians caught in the middle of Israel’s invasion of Gaza, there are a multitude of instances, both in corporate and political spheres, that demonstrate an erosion of fair play, transparency, ethicality, and objectivity.

Fairness is the principle of treating everyone with impartiality and without bias. It is about ensuring that the rules apply equally to all, regardless of their background, wealth, or status. When a justice system is fair, people trust it. When hiring practices are fair, opportunities are open to a wider range of talent. When economic policies are fair, they do not disproportionately benefit one group at the expense of another. Without fairness, society devolves into a game of favouritism, where connections matter more than competence and the powerful can act with impunity. This breeds resentment and division, undermining social cohesion.

Transparency is about openness. It is the idea that decisions, especially those made by institutions and governments, should be visible and accessible to the public, i.e., a right to information. Think of it as a society’s anti-corruption mechanism. When processes are transparent, it is much harder for backroom deals to happen or for power to be abused. For example, transparent government budgets allow citizens to see where their tax money is going. Transparent legal proceedings ensure that justice is not a secret affair. This visibility builds trust between the people and their institutions. When people can see how and why decisions are made, they are more likely to accept them, even if they disagree. In the absence of transparency, rumours and suspicion thrive, eroding public confidence and creating a fertile ground for corruption.

Accountability is the obligation of individuals or organisations to answer for their actions. It is the question ‘who is responsible?’ Without accountability, there is no consequence for mistakes or wrongdoing. A government that is not accountable can make terrible decisions without fear of repercussion. A corporation that is not accountable for its pollution can continue to harm the environment. This principle ensures that power is not a free pass. It holds individuals and institutions responsible for their duties and ethical conduct. When leaders are held accountable for their promises, they are more likely to be careful and deliberate in their actions. Accountability is what makes a system self-correct. It provides a mechanism to learn from errors and prevent their repetition. Natural machine learning!

Objectivity means basing decisions on facts and evidence, not on personal feelings or prejudices. It is the pursuit of truth over opinion. In a fair and just society, decisions are made on the merits of a case. A jury’s verdict is supposed to be based on the evidence presented, not on its personal biases. Scientists’ findings are evaluated based on data, not on their reputation. Objectivity ensures that outcomes are based on reality, not on someone’s subjective viewpoint. It is the cornerstone of rational thought and a prerequisite for making sound judgments. Without objectivity, we lose the ability to distinguish between fact and fiction, making us vulnerable to manipulation and misinformation.

Principled evaluation and person-centric evaluation

The transition from principled evaluation to person-centric evaluation is often a gradual and insidious process. It rarely happens overnight. It begins with small, seemingly harmless concessions. We overlook a minor mistake from a colleague we enjoy working with, while we make a song and dance of the same error from someone, who we dislike. We rationalise them. ‘It was a one-time thing,’ or ‘They are usually so good,’ or ‘He has done so much for the country.’ Meanwhile, we apply a different, more stringent standard to the people we dislike, often magnifying their faults and minimising their successes.

This is the psychological trap of confirmation bias in action. Confirmation bias is a cognitive shortcut where people seek, interpret, and favour information that confirms their pre-existing beliefs while ignoring or downplaying contradictory evidence. It is a pervasive phenomenon that affects us all, often without us even realising it. We seek out and interpret information in a way that confirms our pre-existing beliefs. If we like someone, we look for evidence of their good qualities and downplay their negative ones. If we dislike them, we do the opposite. This may not be a conscious, malicious act in most cases. It is an unconscious cognitive shortcut that allows our brains to justify our emotions. Its pervasiveness, though, makes it appear more the norm than the exception.

Confirmation bias shapes our social circles and personal judgments. People often gravitate towards others who share their views, creating ‘echo chambers’. This is particularly evident on social media. You follow people and news sources you agree with, and the algorithm, in turn, feeds you more of the same, reinforcing your beliefs and rarely exposing you to opposing viewpoints. Stereotyping is another social example. If you believe a certain group of people is lazy, you will pay more attention to and remember instances of laziness of individuals within that group. You will overlook any evidence that contradicts your stereotype. This selective attention and memory perpetuate and strengthen the stereotype in your mind.

Confirmation bias is a major driver of political polarisation. Voters often seek out news outlets that align with their political ideology. For instance, a conservative person may watch a news channel known for its right-leaning perspective, while a liberal person watches a left-leaning one. When a political scandal breaks, both viewers will interpret the same event in a way that confirms their pre-existing belief about the trustworthiness of the party involved. They will focus on details that support their side and dismiss information that could be seen as favourable to the opposition. This bias is how people evaluate candidates. A voter who supports a particular candidate will interpret his/her campaign speeches, actions, and even gaffes in the most charitable light possible, while a voter who opposes the candidate will view the same things as signs of incompetence or malice. The result is two groups of people who see the same events through entirely different lenses, convinced that their own interpretation is the only rational one.

In the corporate world, confirmation bias can lead to poor decision-making and missed opportunities. It is prevalent in hiring, strategic planning et cetera. A hiring manager, for example, might have a positive first impression of a candidate’s resume and then interview with the subconscious goal of confirming that impression. They will ask leading questions and pay more attention to answers that validate their initial gut feeling, overlooking red flags or a more qualified candidate. A CEO who is convinced that a new product idea is a guaranteed success may influence his team to ‘prove’ the concept’s viability. The team, knowing what the CEO wants, will conduct market research that asks biased questions or only seeks out data that supports the desired outcome. Any contradictory data is ignored or downplayed, leading to a flawed business plan and an elevated risk of failure. This ‘groupthink,’ is also a collective form of confirmation bias.

Consequence of confirmation bias

The consequence of confirmation bias is a system where the ‘rules’ become flexible, a sliding scale dependent on who is being evaluated. This creates a deeply unstable and unpredictable environment. Individuals who are ‘in’ with the right people are given preferential treatment, while others who may be more deserving and principled are marginalised. The repercussions of such an approach are far-reaching and destructive, impacting individuals, organisations, and society.

The corollaries of confirmation bias are, > Loss of trust and morale. When people see that favouritism and personal bias, not merit, are the true drivers of success, they lose faith in the system. Why work hard, innovate, or uphold ethical standards if the path to success is simply a popularity contest? This leads to a decline in morale, a loss of motivation, and a sense of profound injustice. Talented and principled individuals will either leave or become cynical and disengaged. They realise that their efforts are not valued, and they are playing a game with ever-changing rules, > Rise of mediocrity. A system based on ‘likeability’ inherently rewards the wrong traits. It prioritises social manoeuvring, charm, and the ability to conform over competence, integrity, and innovation. The person who is most effective at office politics, and not the most skilled person, gets the promotion. This leads to a leadership vacuum filled with individuals who may be well-liked but are ill-equipped to handle the challenges of their roles. The quality of work, products, or services will decline, as the organisation is no longer driven by excellence, > Creation of a toxic culture. When personal feelings dictate outcomes, the workplace or community becomes a minefield. People become wary, carefully monitoring their words and actions to avoid arousing the disapproval of those in power. Instead of fostering open communication and constructive feedback, this environment encourages sycophancy, backstabbing, and a culture of fear. Conflict resolution becomes impossible because the ‘facts’ are not the issue, who you are is the issue, > Perpetuation of injustice. This is the most serious consequence. A system based on personal bias is inherently unfair. It disproportionately affects those who are different, i.e., who may be introverted, from a different background, or simply not as socially adept. It creates a powerful and exclusive in-group, where those who are like the decision-makers are favoured. This is a primary mechanism through which unconscious bias and systemic discrimination operate. It is not always overt racism or sexism; it is often the subtle, daily favouritism shown to people who are ‘like us,’ at the expense of those who are not.

Reversing this trend is not easy, but it is essential. It requires a conscious, collective effort to re-centre our focus on principles, not personalities. We can do so by, > Acknowledging and Combating bias. The first step is to admit that we are all susceptible to bias. It is a fundamental part of being human. We must train ourselves to recognise when our feelings about a person are influencing our judgment. When evaluating someone, ask yourself: ‘Am I judging these people based on their actions and results, or based on whether I find them pleasant or difficult?’ Use objective criteria wherever possible, > Implementing clear and objective metrics. To the greatest extent possible, remove the subjective element from evaluations. Instead of vague criteria like ‘good attitude,’ use specific, measurable metrics. For a performance review, focus on concrete achievements, project outcomes, and adherence to company standards. For a judicial process, rely on evidence and legal precedent, not the character of the defendant. This is not to say that all human interaction can be quantified, but that we can create a framework that minimises the room for opinion to take root, > Fostering a culture of accountability. Leaders and individuals must be held accountable for their decisions. If a manager promotes a less-qualified person over a more-qualified one, there should be a system to question and address that decision. This requires a culture where challenges and questioning are not only safe but encouraged. Ethical principles must be actively championed from the top down and enforced consistently, with no exceptions for those who are ‘well-liked.’, > Redefining leadership and success. We must change the narrative around what makes a good leader or a successful person. We need to value integrity, competence, and humility as much as, if not more than, charisma and social skills. We must tell stories that celebrate principled decisions, even when they are unpopular, and highlight the long-term damage of decisions based on favouritism.

Mounting evidence that our values and ethical principles are driven by whether we like or dislike the person being evaluated is a worrying indicator of a growing cultural sickness. It points to a deep-seated vulnerability in human systems. It exposes our tendency to let personal emotions override our commitment to objective truth and fairness. The path back requires a conscious and sustained effort to re-establish the primacy of principles. It means a renewed commitment to justice, not just as an abstract ideal, but as a practical, daily discipline. It demands that we ask not who we are evaluating, but what the facts and principles dictate. For if we lose sight of this, we risk not just a loss of trust or morale; we silently contribute to the destruction of meritocracy and objectivity. The rule of law must always prevail.