Category: Daily Financial Times

PALLEKELE: The fourth and final place for the Lanka Premier League (LPL) Play-offs still hung in the balance after Kandy Royals made a valiant attempt to reach the target of 222 set by Jaffna Kings, and although they made a fair fight to get there, the enormity of the run chase finally got to them and they lost by 21 runs at the Pallekele Cricket Stadium yesterday.

Defending champions Jaffna Kings’ five wins out of seven matches propelled them to the top of the table with 10 points and ensured them a top two place, while Kandy Royals, who have completed all their fixtures, remain in fourth position with six points and have to await the result of the Jaffna Kings vs. Dambulla Sixers game on Sunday to know their fate.

A win for Dambulla Sixers with a good net run rate will ensure they qualify as the fourth team in the Play-offs. The difference in the net run rate between Kandy Royals (-0.567) and Dambulla Sixers (-0.565) at the moment is marginal.

A win here yesterday would have made Kandy Royals the fourth team to qualify for the Play-offs. It was no doubt a huge run chase for them, and they began well with Lahiru Udara (30 off 15 balls) and Pawan Sandesh (48 off 21 balls, 5 fours, 4 sixes) posting 90 in seven overs. But Shakib Al Hasan took the wickets of Udara, Kusal Perera and, more importantly, Wanindu Hasaranga at a crucial phase of the game to dent Kandy Royals’ run chase. Zahoor Khan, and then Dunith Wellalage, turned the game on its head. Wellalage struck three times in eight balls and all but closed Kandy Royals’ run chase, ending with figures of 3/11.

A disappointed Hasaranga, substituting as Captain for this game in the absence of Angelo Mathews who is nursing an injury, said: ‘We had expected to lose because of our fielding. The batters did well. That is the only plus point we had.’

Kandy Royals put down as many as four catches during the Jaffna Kings innings and were made to pay for it dearly.

Jaffna Kings put up a solid batting effort to reach the highest total this season – 221/6. They started off like a runaway train with Avishka Fernando (36 off 22) and Kamil Mishara (49 off 26 balls, 2 fours, 5 sixes) bossing the powerplay, racing to 79. They carried their opening partnership to worth 95 off 45 balls before the Kandy Royals bowlers came back in style to reduce them to 139-5 in the 15th over.

But cameos from Player of the Match Chamindu Wickramasinghe (43 off 15 balls, 3 fours, 4 sixes), Al Hasan (22* off 16), and Wellalage (16* off 9) left Kandy Royals chasing a target of over 200 for the second time in two days.

Scores:

Jaffna Kings 221-6 (20) (Kamil Mishara 49, Avishka Fernando 36, Towhid Hridoy 21, Shakib Al Hasan 22*, Chamindu Wickramasinghe 43, Moeen Ali 2/38, Wanindu Hasaranga 2/27)

Kandy Royals 200 (20) (Lahiru Udara 30, Pawan Sandesh 48, Shaheen Afridi 24, Wanindu Hasaranga 24, Vijay Shankar 25, Dilshan Madushanka 2/36, Shakib Al Hasan 3/43, Zahoor Khan 2/32, Dunith Wellalage 3/11)

Teen Academy, the Colombo-based youth business education program, has secured formal accreditation from the Organisation of Business Professionals (OBP UK) for its flagship Teen Master of Business program, designed for students aged 13 to 18.

Under the agreement, OBP UK becomes the exclusive awarding body of certificates to students who complete the program under Teen Academy’s tutelage, with Teen Academy named the accredited delivery centre for

Sri Lanka and the Maldives.

The accreditation means that when Cohort 1 begins on 8th August at the Postgraduate Institute of Management (PIM), Colombo, graduating students will receive a certificate carrying the recognition of a UK-based professional body – a first for a teen-focused program of this kind in Sri Lanka.

Teen Academy Founder and Program Director Bradley Emerson said: ‘From my end as the founder, the exclusive accreditation from a Business Professional body is an affirmation that our subject selections, learning outcomes, and competency mapping are aligned to global trends and future-focused. For us, it gives a sense of accomplishment to see a globally recognised certificate in the hands of our teens. Moreover, the decision by OBP to offer this program in their centres is a feather for Sri Lankan faculty.’

Established in 2010, OBP UK is a globally recognised provider of continuing professional development (CPD) programs and an approving centre for training providers, colleges, and institutes across the world. The organisation designs and accredits certificates and diplomas spanning business, management, marketing, and related fields, working with partner centres across multiple countries to deliver internationally benchmarked qualifications.

For Teen Academy, the partnership places the Teen Master of Business alongside OBP UK’s other accredited programs on the body’s official listings, and licenses use of the OBP UK mark on Teen Academy’s own marketing collateral – subject to OBP UK’s branding and quality assurance guidelines.

OBP UK Registrar Gavin McDougall said: ‘The Teen MBA program is a fantastic initiative designed to equip teenagers with essential life and business skills. It helps develop leadership, entrepreneurship, confidence, and critical thinking through practical, engaging learning. It’s a valuable program that prepares young people for future academic, career, and personal success.’

OBP UK Country Representative – Sri Lanka and Maldives Michael Ranasinghe said: ‘In a world defined by volatility, regardless of the profession a young person qualifies in, the headwinds and undercurrents they will face are largely the same. What will determine whether they drown, merely cope, or truly thrive is not the depth of their subject knowledge alone, but the agility, critical thinking, and leadership instincts they build early on.’

‘Teenage years are the ideal window to develop these capabilities before they embark on their chosen path. This is precisely why OBP UK is pleased to be associated with the accreditation of Teen Academy’s Teen Master of Business program, the first of its kind. The curriculum goes well beyond the rote learning that defines GCE O/L and A/L preparation. Its modules and learning outcomes are closely aligned with the competencies every young person will need to navigate a fast-evolving world – and its Chairman, Dr. Bradley Emerson, brings deep, credible experience in professional education and training to this initiative. We are proud to support a program that equips young people not just to pass an exam, but to lead, adapt, and create value in whatever field they choose,’ added Ranasinghe.

Teen Academy’s Cohort 1 begins on 8 August 2026 at the Postgraduate Institute of Management, Colombo, running across twelve modules through to January 2027. Enrolment is open now for students aged 13 to 18.

Fifty years after they proudly donned Trinity’s famous Red, Yellow and Blue and represented their alma mater on the cricket field, the cricketers of the 1976/77 seasons will reunite in March 2027 to celebrate the Golden Jubilee of an unforgettable chapter in their lives.

This reunion is far more than a nostalgic gathering. It is a celebration of lifelong friendships, shared sacrifices, cherished memories and the enduring values instilled by Trinity College. Through sport, they were taught to be humble in victory and gracious in defeat. These qualities have remained with them throughout their lives.

The squads of 1976 and 1977 belonged to an era when school cricket was played for honour rather than headlines. Their exploits on grounds across Kandy and Colombo forged friendships that have endured the passage of five decades. Today, members of those teams are spread across Sri Lanka and around the world, yet the spirit of Trinity continues to unite them.

The celebrations will coincide with the historic Trinity vs. St. Anthony’s “Battle of the Blues,” allowing former players to relive the unique atmosphere of the Asgiriya Cricket Ground, one of the most treasured venues in Sri Lankan school cricket. Trinity’s proud cricketing tradition, which stretches back well over a century, remains one of the richest legacies in the nation’s sporting history.

The programme will bring together former players, their families, contemporaries, coaches, masters and loyal supporters for an evening of fellowship, remembrance and gratitude. A special tribute will be paid to teammates, teachers, coaches and devoted supporters who are no longer with us but whose guidance and encouragement helped shape the lives of these cricketers.

The organisers hope the reunion will also inspire younger generations of Trinitians by demonstrating that the true rewards of school sport are measured not merely in victories and trophies, but in character, friendship, humility and an enduring loyalty to one’s alma mater.

As the Golden Jubilee approaches, the cricketers of 1976/77 warmly invite fellow Trinitians, old boys, supporters and well-wishers to join them in celebrating a remarkable milestone in the proud history of Trinity College cricket.

Fifty years may have passed since they walked onto the field as young Lions, but the friendships they forged, the lessons they learned, and the pride of representing Trinity College remain as strong today as they were in 1976 and 1977.

The use of rice and sugar as primary ingredients in beer production will come under judicial scrutiny after the Court of Appeal fixed 2 October to hear objections in a petition seeking to prevent regulators from approving the practice.

The petition, filed by a group of licensed liquor sellers, argues that permitting rice and sugar to be used as the principal raw materials in beer production is inconsistent with the Excise Ordinance and could have broader implications for the use of subsidised agricultural commodities.

A bench comprising Justices R. Gurusinghe and A. Prema Shankar fixed the matter for 2 October after counsel appearing for several respondent liquor manufacturing companies sought time to file objections.

The Court granted the respondents permission to file their objections before the next hearing.

The petition names the Commissioner General of Excise and other relevant Excise officials, the Sri Lanka Standards Institution, the Attorney General, and the Inspector General of Police among the respondents.

According to the petitioners, Section 2 of the Excise Ordinance defines beer as a fermented alcoholic beverage made from malt. They contend that information has emerged indicating that a number of manufacturers are using rice and sugar as the primary raw materials in beer production, contrary to the provisions of the law.

The petitioners further argue that the Government is providing substantial public subsidies to support domestic rice production and that diverting rice to commercial beer manufacturing could have adverse consequences for the national economy and undermine efforts to achieve rice self-sufficiency.

They have sought a writ order restraining the Commissioner General of Excise and other relevant authorities from approving the use of rice and sugar as the primary raw materials in beer production pending the determination of the case.

The National Packaging Centre (NPC), in collaboration with the Export Agriculture Division (EAD) of the Sri Lanka Export Development Board (EDB), successfully conducted a workshop on ‘Cinnamon Packaging and Compliance with EU Regulation’ for members of the GI Association, exporters, and potential exporters.

Held on 22 July at the DHPL Training Arena, the program attracted nearly 100 participants, underscoring the strong interest in preparing Sri Lankan exporters for evolving global standards.

The workshop placed special emphasis on the EU Packaging and Packaging Waste Regulation (PPWR), which entered into force on 11 February 2025 and will be fully enforced from 12 August 2026. This Regulation introduces uniform rules across all EU member States on packaging design, recyclability, waste reduction, and traceability. Strict enforcement measures, including fines, market bans, and product recalls, make compliance essential for exporters seeking continued access to the EU market.

For Sri Lanka, where Ceylon Cinnamon enjoys Protected Geographical Indication (PGI) recognition, aligning with the PPWR is critical to safeguarding brand authenticity, avoiding costly recalls, and strengthening consumer trust. Exporters were urged to focus immediately on eliminating per- and polyfluoroalkyl substances (PFAS) and heavy metals, preparing EU Declarations of Conformity, ensuring operator identification, and registering under Extended Producer Responsibility (EPR) schemes across EU member States.

The resource panel featured distinguished experts from Control Union Sri Lanka, including Scheme Manager/Head of Assurance and Sustainability Gayan Ranasinghe, Certifier – Food Safety Programs Thilini Mahaarachchi, and Certifier Kasun Geeganage, alongside veteran Packaging Consultant W. Abhaya Seneviratne. Their presentations provided practical insights into selecting appropriate packaging methods and materials to maintain product quality, minimise waste, and ensure compliance with EU requirements.

Through initiatives like this, the EDB’s NPC continues to play a pivotal role in strengthening Sri Lanka’s packaging sector, fostering innovation, and supporting the sustainable growth of agricultural exports. By promoting modern, compliant, and eco-friendly packaging practices, the NPC empowers exporters to enhance product value and improve readiness for international markets.

Opposition Leader Sajith Premadasa has sought continued United States support for Sri Lanka’s economic recovery and long-term development during talks with a visiting delegation from the US House of Representatives.

Meeting the delegation led by Democratic US Representative Chrissy Houlahan in Colombo on Wednesday, Premadasa discussed bilateral economic cooperation, governance, education and regional stability.

Premadasa underscored the importance of continued US engagement in supporting Sri Lanka’s economic framework and thanked the United States for the assistance extended to the country in recent years.

He also recalled the preferential trade access granted during the administration of former President Ranasinghe Premadasa, saying it played a significant role in expanding Sri Lanka’s apparel industry, creating employment and increasing export earnings. He expressed appreciation for the United States’ contribution to the sector’s development.

Houlahan reaffirmed the United States’ commitment to democratic values, economic stability and continued engagement with Sri Lanka.

The two sides also exchanged views on strengthening democratic institutions, promoting transparency and accountability, expanding access to education and creating sustainable economic opportunities.

The meeting concluded with both sides expressing their commitment to further strengthening cooperation between Sri Lanka and the United States.

Sri Lanka Customs has seized more than 396 kg of narcotics with an estimated street value of Rs. 4.5 billion in 55 raids carried out between 30 October 2025 and July 2026, as authorities intensified efforts to curb illicit drug trafficking.

Customs Spokesman Chandana Punchihewa said the seizures comprised Kush, cannabis, cocaine and methamphetamine, commonly known as Ice.

He said Customs conducted five drug detections during July alone, leading to the seizure of 25.4 kg of narcotics.

‘During July 2026, we seized 25.4 kilograms of various narcotics through five detections. The drugs included Kush, cannabis, cocaine and methamphetamine,’ Punchihewa said.

When a business has already failed and the taxpayer genuinely lacks the financial capacity to pay, does the law provide sufficient consideration for their ability to repay? What safeguards exist to prevent excessive enforcement or the misuse of power by public officials?

As an MSME owner, I have genuine concerns. The Government has introduced stronger tax laws and tougher enforcement to combat tax evasion. While deliberate tax fraud should certainly be punished, has equal attention been given to protecting honest businesses from excessive or unfair enforcement?

Many business owners have shared stories of severe financial hardship during tax recovery proceedings. Some say they have faced court action, some have been forced to sell assets to settle tax liabilities, and others have struggled to rebuild their lives after business failure. These experiences raise an important question: Does our legal framework provide sufficient safeguards against the misuse of authority, and does it adequately consider a business’s actual ability to pay?

A bankrupt business cannot generate tax revenue. A closed factory cannot employ workers. A business that is forced to shut down contributes nothing further to the economy.

Today, MSMEs are already carrying a heavy burden. Many are struggling with 18.5% VAT, 2.5% SSCL (where applicable), and the costs associated with mandatory digital payment systems, all while operating on increasingly thin margins. Instead of discussing growth and expansion, many entrepreneurs are asking a painful question: “Should we continue trying to survive, or should we close our businesses?” If that is the reality facing our MSMEs, then something is wrong.

We need strong laws against deliberate tax evasion, but we also need strong safeguards against the misuse of power, fair dispute resolution, and practical repayment mechanisms that recognise a business’s financial capacity. The goal of tax administration should be to maximise long term compliance and economic growth, not to unintentionally destroy the very enterprises that create jobs and contribute to Sri Lanka’s economy.

New VAT amendments

The new amendment to VAT Act significantly increases the period within which criminal proceedings may be instituted. Where an offence involves the commission of an Act, proceedings may be commenced within 12 years from the date on which the act was committed. Similarly, where an offence involves a failure to perform an obligation under the VAT Act, proceedings may be instituted within 12 years from the date on which the obligation was required to be performed. This is as against 5 years under the previous law. When the new law is imposed it can go back to 2014. This causes problems to businesses that don’t possess documents that far or have only upto 2019 applicable to the previous law. If a case is filed next year, businesses are clueless as to how to defend this. Ideally this 12 year rule should be implemented from 2031 onwards.

It is unfortunate that this problem and failure by law makers is not addressed by the Committee of Public Finance. The disappointment is that law and policy makers fail to look at challenges from a tax payers perspective. Officers at the Inland Revenue Department also lack adequate knowledge about problems faced by businesses or running a business. Growing frustration, disillusion and bankruptcy has been linked to some of the suicide cases among micro, small and medium entrepreneurs.

Inland Revenue enforcements and immense pressure on many MSMEs

As I have observed, since this Government came into office, Inland Revenue enforcement has placed immense pressure on many MSMEs.

From what I have witnessed and been informed by Deputy commissioner itself, around 600 businessmen in the Central Province were brought before the courts within one month last year to cover their targets. Many were held in custody until bail was granted and I witnessed it.

I have also seen cases where business owners were forced to sell their assets including their only vehicle or even their family home to settle outstanding tax liabilities.

One case that deeply affected me involved a businessman whose business had already become bankrupt and closed down. When the Inland Revenue filed action against him, he was working for a salary that was barely enough to support himself and his family. During the court proceedings, the judge asked whether he could pay a specified amount towards the tax arrears. He explained that he simply could not afford it because his business no longer existed and his salary was insufficient. As a result, he was imprisoned because he was unable to pay.

This raises an important question: When a business has already failed and the taxpayer genuinely lacks the financial capacity to pay, does the law provide sufficient consideration for their ability to repay? What safeguards exist to prevent excessive enforcement or the misuse of power by public officials?

This also raises a fundamental policy question.

If a person has genuinely become bankrupt, their business has already closed, and they have no realistic ability to pay their tax debt, what is achieved by imprisoning them?

While they are in prison, the Government bears the cost of their food, accommodation, healthcare, electricity, water, security, and prison administration, all funded by taxpayers. At the same time, that person is unable to work, earn an income, or make any contribution towards settling the outstanding tax liability.

More practical solution

Would it not be more practical and economically sensible to allow such a person to remain employed and require them to repay what they can reasonably afford through a structured repayment plan? Even if the payments are small, the Government continues to recover revenue instead of incurring the additional cost of imprisonment.

This is not about excusing deliberate tax evasion. Those who intentionally commit tax fraud should be dealt with firmly. However, where a business has genuinely failed and a taxpayer has no financial capacity to pay, should our laws not distinguish between unwillingness to pay and inability to pay?

The purpose of tax enforcement should be to recover revenue while treating people fairly, not to impose additional costs on the State where there is little prospect of recovering the debt.

Perhaps it is time for policymakers to review these laws and consider reforms that protect public revenue while also recognising economic reality and the genuine repayment capacity of struggling taxpayers.

Protect MSMEs. Protect jobs. Protect the future of Sri Lanka.

The Government is considering allocating funding through the 2027 Budget to complete nearly 5,000 abandoned housing units, as it seeks to revive stalled projects and expand the country’s housing stock.

Housing, Construction and Water Supply Minister Dr. Susil Ranasinghe said the proposed funding would be guided by recommendations from a committee appointed to assess housing projects initiated under previous administrations but left incomplete.

The proposal was discussed at a meeting of the Ministerial Consultative Committee on Housing, Construction and Water Supply held in Parliament under the Minister’s chairmanship.

Dr. Ranasinghe said many housing projects were abandoned after loan and grant funding allocated for their implementation was not fully disbursed, leaving thousands of housing units unfinished.

He said a five-member committee, co-chaired by two former Secretaries to the Ministry, has been tasked with identifying projects that can be completed and determining which housing units are already in a condition suitable for occupation.

According to the Minister, the committee has begun collecting information on the affected projects, assessing the condition of the housing units and preparing recommendations on the most appropriate course of action.

He said final decisions on the future of the abandoned projects would be taken after the committee submits its recommendations.

Separately, the Minister announced plans to launch a programme next year to assist families requiring financial support to complete partially constructed houses. The initiative is expected to benefit around 2,000 families.

Members of Parliament attending the consultative committee meeting also raised housing and water supply issues affecting their electorates.

The Ministry further agreed to convene a special meeting with relevant stakeholders to discuss housing-related issues, including housing projects for low-income families in the Colombo District.

Sri Lanka’s leading brands have reached a significant milestone, with the combined brand value of the nation’s top 100 brands rising 17% to a record Rs. 652 billion, surpassing the pre-crisis 2019 peak of Rs. 630 billion, according to the Sri Lanka 100 2026 report from Brand Finance, the world’s leading brand valuation consultancy.

The strong brand performance mirrors Sri Lanka’s broader economic recovery following the country’s 2022 sovereign debt crisis. Despite the impact of Cyclone Ditwah in late 2025 which caused an estimated $ 4.1 billion (approximately Rs. 13.7 billion) in damage, the economy maintained a 5% growth in 2025, supported by stabilising inflation, improving foreign reserves and an ambitious programme of economic and digital reforms.

The banking sector continues to underpin Sri Lanka’s brand landscape, contributing 42% of the total brand value in the ranking, equivalent to Rs. 275 billion, up 14% year on year. Six out of the country’s top ten most valuable brands are banks, highlighting the sector’s central role in financing economic growth and maintaining financial stability.

Bank of Ceylon (BOC) (brand value at Rs. 65.5 billion) retains its position as Sri Lanka’s most valuable brand for the second consecutive year, reflecting the growing international profile of Sri Lanka’s financial sector.

At second place, Commercial Bank (brand value up 18% to Rs. 54.9 billion) is recognised as a leader in digital payments infrastructure and Sri Lanka’s largest interbank-payments processor.

Dialog (brand value up 16% to Rs. 41.1 billion) emerges as Sri Lanka’s strongest brand with Brand Strength Index (BSI) score of 89.4/100 and an AAA brand strength rating, overtaking Keells (brand value up 16% to Rs. 26.4 billion) now second strongest brand, following continued investment in customer experience, digital services and innovation. Dialog also remains as the third most valuable Sri Lankan brand in 2026.

With a BSI score of 88.5/100 and an AAA brand strength rating, Keells slips to second place as the strongest Sri Lankan brand while Commercial Bank retains its position as the third strongest (BSI: 87/100, AAA brand strength rating).

Brand Finance Lanka Chairman Ruchi Gunewardene said: ‘Sri Lanka’s brands have demonstrated remarkable resilience. Surpassing the country’s pre-crisis peak is more than a financial milestone; it reflects renewed confidence in the economy and the institutions driving its recovery. While banking continues to anchor the nation’s brand landscape, the next phase of growth will depend on greater diversification, continued digital transformation and the successful adoption of AI across industries.’

Other standout brands in the Sri Lanka 100 2026 report are Sampath Bank (brand value up 5% to Rs. 26 billion), the first Sri Lankan bank to integrate PayPal withdrawals, while Nations Trust Bank (brand value up 35% to Rs. 9.9 billion) completed the acquisition of HSBC Sri Lanka’s retail banking business, consolidation its position within the banking sector.

Meanwhile, PickMe (brand value up 11% to Rs. 4.8 billion) continues to demonstrate how local innovation can outperform global competitors by addressing domestic market needs. Since its launch in 2015, the homegrown mobility platform has strengthened its position through digital payments, AI powered pricing and demand forecasting, multilingual AI customer support, and enhanced safety features, cementing its role in Sri Lanka’s digital economy.