Category: Daily Financial Times

Sri Lanka completed a 5-0 series sweep of the women’s Under-19 T20 series against touring Australia when they won the fifth and final match by six wickets at the Rangiri Dambulla International Cricket Stadium yesterday.

Choosing to bat first Australia managed only 114-6 with the main contributions coming from Emily Powell (33 off 40 balls, 4 fours) and Lucy Finn (35 off 33 balls, 3 fours) who were involved in a 53-run stand for the third wicket. Left-arm spinner Chamodi Praboda was the pick of the Lankan bowlers finishing with 3/16.

Skipper Manudi Nanayakkara played a crucial knock of 34* off 35 balls (5 fours) to steer her team home with 15 balls to spare.

Australia also lost the one-off 50-over match against Sri Lanka and will return home empty handed without a single win on the tour.

Scores: Australia Under-19 Women 114-6 (20) (Emily Powell 33, Lucy Finn 35, Chamodi Praboda 3/16)

Sri Lanka Under-19 Women 115-4 (17.3) (Manudi Nanayakkara 34*, Shashini Gimhani 19*, Shiloh Julien 2/20)

A special ceremony to invoke blessings on the Sri Lanka Army and its regimental flags was held at the historic Kataragama Kiri Vehera and Kataragama Devala premises.

The Inland Revenue Department (IRD) has announced a major overhaul of Sri Lanka’s VAT refund system, replacing the Simplified Value Added Tax (SVAT) scheme with a risk-based refund mechanism effective today.

The IRD stated that the new mechanism aims to facilitate faster and more efficient VAT refunds for eligible exporters and projects while reducing opportunities for fraud and errors.

Under the new system, refunds will generally be issued within 45 days of submitting a proper VAT return, depending on the taxpayer’s risk rating. Eligible VAT registrants will be assessed using a statistically robust risk-based methodology and classified into three categories: low, medium, and high risk. Low and medium risk taxpayers can expect refunds without prior verification, while high risk taxpayers will undergo pre-verification before refunds are processed.

According to the IRD, eligible recipients include exporters with direct exports exceeding 50% of their total supply in the preceding year, approved projects under Section 22(7) of the VAT Act, and suppliers to designated Special Projects (SP) and Strategic Development Projects (SDP), where such supplies constitute over 50% of their total supply.

The IRD noted that any non-compliance or errors detected in submitted schedules will pause the 45-day refund timeline until rectification, ensuring accountability in the process.

The SVAT scheme, introduced in 2011, has been a cornerstone of the country’s taxation framework, particularly supporting exporters and strategic projects. However, the move to replace SVAT comes amid growing concerns over VAT compliance and past instances of large-scale fraud.

Notably, Sri Lanka experienced the largest VAT fraud in South Asia in the early 2000s, resulting in a loss of around Rs. 357 million due to unlawful refunds to non-existent companies.

The Government and IRD face a critical challenge in ensuring that the new refund mechanism is robust, transparent and resistant to corruption. With past VAT and income tax refund systems proving vulnerable, policymakers will need to balance efficiency with stringent verification to safeguard public funds.

On 26 September, leading export associations voiced deep concerns and warned of a looming cash flow crisis that could choke the country’s $ 19 billion export target for 2025. At a joint press briefing, representatives from a range of key export industries stressed that while the move is framed as aligning with International Monetary Fund (IMF)-backed reforms, the absence of a tested and functioning VAT refund mechanism threatens to withhold nearly 8% of export earnings or about $ 80 million each month from the sector (https://www.ft.lk/front-page/Exporters-fear—80-m-monthly-cash-crunch-if-SVAT-removed-and-no-refund-system/44-782189).

The Colombo stock exchange closed up yesterday extending a rally into its 11th session with buying interest in capital goods and Blue-chip counters.

The benchmark ASPI closed Tuesday up 0.47%, gaining 102.30 points to 21,778.60. The active S and P SL20 gained 7.32 points to close up 0.12% at 6,126.53.

Turnover was Rs. 6.27 billion on more than 154.7 million shares traded.

Foreigners were net sellers with a net outflow of Rs. 362.2 million, up from an outflow of Rs. 15.6 million the previous day.

First Capital Research said riding the wave of Monday’s bullish surge, the Colombo Bourse yesterday charged ahead once more, fuelled by a powerful rally in Capital Goods and Blue-chip counters.

In the early hours of trading, the market experienced a volatile session marked by notable selling pressure. But the market refused to back down. In a steady and determined climb, it fought its way back, turning red into green.

By the closing bell, the index stood at 21,779, a resounding gain of 102 points, sealing another victorious chapter in its upward march. Participation from HNW investors remained relatively low with moderate participation from retail investors.

Additionally, top positive contributors to the index included, DIMO, BUKI, CCS, MELS and WATA. Turnover for the day stood at Rs. 6.3 billion, reflecting a decrease of 12% compared to the monthly average that stands at around Rs. 7.1 billion.

Food, Beverage, and Tobacco sector took the lead in terms of sector wise contributions to turnover, with a share of 20%, followed by the Consumer services and the Capital Goods sectors which produced a combined contribution of 28%. Foreign investors remained net sellers, recording a net outflow of Rs. 362.2 million.

NDB Securities said high net worth and institutional investor participation was noted in Ceylon Hotels Corporation, Diesel and Motor Engineering, and Central Industries. Mixed interest was observed in Digital Mobility Solutions Lanka, Hatton National Bank and Ceylon Cold Stores whilst retail interest was noted in Kotagala Plantations, Lanka Credit and Business Finance and Browns Investments.

The Food, Beverage, and Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings) whilst the sector index gained 1.83%. The share price of Sunshine Holdings appreciated by 90 cents to Rs. 32.50.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index edged up by 0.02%.

Ceylon Hotels Corporation, Diesel and Motor Engineering, Digital Mobility Solutions Lanka and Hatton National Bank nonvoting were also included amongst the top turnover contributors. The share price of Ceylon Hotels Corporation increased by Rs. 5.40 to Rs. 48.70. The share price of Diesel and Motor Engineering gained Rs. 335.75 to Rs. 2,070.75. The share price of Digital Mobility Solutions Lanka moved up by one Rupee to Rs. 146. The share price of Hatton National Bank nonvoting closed flat at Rs. 297.00.

A new chapter in Sri Lanka’s forest restoration journey begins with a landmark partnership between Alliance Finance Company PLC (AFC) and Preserving Land and Nature (Guarantee) Ltd., (PLANT).

Formalised through a recent MoU, this multi-year collaboration integrates sustainability into AFC’s core products, supports the planting of 100,000 trees across PLANT sites, and initiates community programs near restoration areas. The first engagement unfolds at Radella Estate in Nuwara Eliya, managed by Talawakelle Tea Estates PLC, where AFC will help establish a forest corridor- part of a 13 km stretch being developed by WNPS PLANT with multiple partners.

This initiative unites finance and conservation in a shared mission to restore native forests, enhance climate resilience, and deliver lasting benefits to local communities. AFC will fund the initial phase and aims to scale efforts over five years, combining ecological recovery with community development, nature education, and inclusive financial strategies to create a replicable model for sustainable restoration.

Radella: From degraded grassland to living forest

Radella Estate, bordered by the Nanu Oya stream and dominated by invasive grasslands, is part of PLANT’s Emerald Trails Initiative, an effort to reconnect fragmented habitats in Sri Lanka’s biodiversity-rich southwest. Restoration will focus on planting native pioneer species to stabilise stream banks, improve microclimates, and boost biodiversity. Crucially, the project models how ecological restoration can align with community stewardship and climate adaptation, aiming to link restored areas with the Great Western mountain reserve, home to many threatened species.

PLANT Chairman Sriyan de Silva Wijeyeratne said, ‘This partnership shows what can happen when stewardship replaces sponsorship. Alliance Finance is not just funding a project; they are investing in a living, breathing system. Together, we are bringing forests back, empowering families, and giving communities a tangible stake in nature’s future. AFC is leading the way in demonstrating that sustainability efforts are long term oriented, and they were willing to provide longer term funding solutions for our work, once they understood our vision around Emerald Trails.’

New financial model for sustainability

AFC commit to the UN’s Principles for Responsible Banking, brings more than capital to the table. Through this partnership, AFC is helping shape a new model of conservation- one that integrates environmental regeneration with long-term social and economic resilience. This collaboration reflects AFC’s dedication to Triple Bottom Line values: People, Planet, and Profit. It signals a transition from transactional CSR to embedded sustainability, where financial inclusion and ecological accountability go hand in hand.

AFC Deputy Chairman and Managing Director Romani De Silva said, ‘At Alliance Finance, we believe sustainability means uplifting communities while restoring ecosystems. This partnership reflects our long-term commitment to financing regeneration, not just for nature, but for the people who depend on it. Together with PLANT, we are investing in a future that balances prosperity with planetary well-being. Through this initiative, we also aim to empower the next generation by linking tree planting with financial literacy via our Hapannu Savings Scheme – giving children a chance to grow their savings alongside the trees they help protect.’

Community-centred, locally led

At the heart of PLANT’s mission is the belief that restoration must be community-driven. Across 33 locations, PLANT prioritises native biodiversity and science-based methods while empowering those closest to the land. The organisation is building over 25 km of forest corridors and works with local residents, especially women, youth leaders, and smallholder farmers, to lead restoration efforts. Through community nurseries, training, and income-generating opportunities, PLANT transforms degraded areas into thriving ecosystems. By rooting conservation in local hands, PLANT fosters shared ownership and responsibility, ensuring restored landscapes are protected for generations and that ecological revival goes hand in hand with community resilience.

Beyond Radella: Growing vision

The broader vision is to embed restoration into the cultural and economic fabric of the region. Planned efforts include partnerships with local schools for climate education and student-led planting, digital tools for monitoring tree survival, and community engagement for long-term forest stewardship. By aligning conservation with inclusive development and responsible finance, the AFC-PLANT partnership offers a scalable model for climate-smart restoration in Sri Lanka and beyond. As native saplings take root in Radella, they represent more than reforestation; they symbolise a cross-sector, intergenerational commitment to a future where both forests and communities can thrive together.

Fox Jaffna by Fox Resorts has been honoured with the Silver Award for ‘Leading Heritage Hotel/Resort’ at the prestigious South Asian Travel Awards (SATA) 2025. This marks the fourth consecutive year that the boutique property has received regional recognition, cementing its position as a premier heritage hospitality destination in Sri Lanka.

Located in the culturally rich city of Jaffna, Fox Jaffna offers guests a unique blend of heritage and contemporary comfort. The hotel is housed in a carefully restored historic compound, where the original architectural features have been preserved to maintain the site’s deep cultural significance. One of the standout features of Fox Jaffna is its innovative reuse of the underground bunkers, which have been thoughtfully transformed into a captivating art gallery and history museum. This initiative reflects Fox Jaffna’s commitment to giving back to the community by preserving and promoting the rich cultural heritage of the region. These spaces offer guests a tangible connection to Jaffna’s complex history, showcasing local artistry and telling the stories that define the cultural tapestry of the Northern Province. Through this thoughtful curation, Fox Jaffna not only educates visitors but also celebrates and supports the vibrant community that shapes the identity and future of Jaffna.

Fox Jaffna’s commitment to heritage preservation goes hand-in-hand with its dedication to sustainable tourism. The property incorporates eco-friendly initiatives such as energy-efficient systems, water conservation practices, and waste reduction measures. Furthermore, local materials and traditional craftsmanship have been prioritised throughout the hotel’s design and operations, supporting the regional economy and preserving artisanal heritage. This holistic approach ensures that Fox Jaffna not only honours the past but also safeguards the future of Jaffna’s community and environment.

Fox Resorts CEO Chris Quyn said, ‘Receiving the South Asian Travel Award for the fourth year running is a tremendous honour. This recognition reflects the hard work and passion of our team, who strive to create authentic and meaningful guest experiences rooted in the rich history of Jaffna. Our goal is to offer more than just accommodation – we aim to share the unique story of this region with travellers from around the world.’

The South Asian Travel Awards is the region’s most respected hospitality and tourism event, celebrating excellence, innovation, and leadership across South Asia. Fox Jaffna’s continued success highlights its role as a leader in heritage hospitality, combining cultural preservation, sustainable practices, and genuine hospitality to inspire travellers worldwide.

People’s Bank has partnered with Toyota Lanka Ltd., to launch an exclusive Auto Loan Facility, providing Sri Lankans with an enhanced opportunity to realise their dream of vehicle ownership.

The Memorandum of Understanding (MoU) for this partnership was signed recently at Toyota Plaza, Wattala. The event was attended by People’s Bank Chief Executive Officer/General Manager Clive Fonseka, Deputy General Manager – SME Development and Micro Finance Wickrama Narayana, Deputy General Manager – Retail Banking and Overseas Customer Services Aruni Liyanagunawardana, along with other officials. Representing Toyota Lanka were Head/Project Manager – Value Chain and Mobility Solutions Naotaka Takeda, Chief Operating Officer Mathisha Samaranayake, Chief Financial Officer Gayan Karunarathne, Chief Human Resource Officer Demetrious Perera, General Manager – Sales Ravi Opatha, General Manager – Auto Value Enhancement Vipul Bandara, and Deputy Manager – Core Marketing Division Suren De Silva.

This initiative introduces a dedicated loan facility for the purchase of brand-new vehicles, representing a significant step forward in both retail banking and automobile financing.

For many Sri Lankans, buying a vehicle is a lifelong aspiration. People’s Bank Auto Loan offers a customer-focused financing solution that extends beyond conventional facilities, providing unmatched flexibility and long-term value. With a range of repayment options available, customers can benefit from a monthly instalment as low as Rs. 1,499 per Rs. 100,000 for a five-year tenure, with up to 30% capital deferment. After five years, the deferred amount can be either settled in full or converted into a new loan, providing greater financial flexibility.

The People’s Auto Loan provides greater value than other traditional financing methods, offering highly competitive interest rates, no early settlement fees, and exclusive discounts on Letter of Credit (LC) openings for vehicle imports. Moreover, this facility enables customers to gain full ownership while enjoying a seamless and affordable path to owning either a brand-new or a pre-owned vehicle.

Toyota Lanka, the sole authorised distributor for Toyota vehicles in Sri Lanka, is renowned for its quality, safety, and innovation. Through this collaboration, customers benefit from the combined credibility of two trusted brands-People’s Bank’s financial expertise and Toyota’s global reputation for excellence.

Together, the two organisations are set to transform auto financing in Sri Lanka, making the aspiration of driving a brand-new Toyota a reality for many.

The Sri Lanka Economic and Investment Summit 2025, themed ‘Gateway to Growth: Asia’s Emerging Opportunity’, will be held on 2 and 3 December at the Shangri-La, Colombo. A key sector deep dive on day one will examine how Sri Lanka can broaden its export base and deliver sustained growth through diversification.

The session, ‘The New Age of Diversified Exports – Delivering on Diversified Export Products and Markets’, will highlight the urgency of moving beyond traditional export sectors as global demand patterns shift and resilience becomes a strategic imperative. The discussion will explore untapped opportunities in high-value industries such as cinnamon, seafood, electronics, minerals, and advanced manufacturing. It will also examine how Sri Lanka can strengthen its position in non-traditional markets through branding, standards, logistics, and strategic trade partnerships.

The keynote address will be delivered by Centre for Social and Economic Progress Visiting Senior Fellow Prof. Sanjay Kathuria. Prof. Kathuria holds a Doctorate in Economics from the University of Oxford, and has over 27 years of experience at the World Bank, and a decade at ICRIER in New Delhi. He is also the Co-Founder of the Trade Sentinel, and a Non-Resident Senior Fellow at the Institute of South Asian Studies in Singapore.

In addition to Prof. Kathuria, the panel will feature Hirdaramani Group Managing Director Ranil Pathirana, Joint Agri Products Ceylon Director/COO Chathura Abeyratne, OREL IT CEO Dr. Upendra Peiris, and Sunshine Healthcare CEO Dr. T. Sayandhan, with Verité Research Director Subhashini Abeysinghe moderating the discussion.

The Government continues to improve its fiscal performance with the overall Budget deficit for the first eight months of 2025 falling 54.88% from a year ago to Rs. 411 billion, according to the latest data released by the Central Bank of Sri Lanka (CBSL).

The overall Budget deficit in the eight months to the end of August 2024 was Rs. 911 billion.

Tax revenue for the eight months grew 31% from Rs. 2.35 trillion a year ago to Rs. 3.07 trillion, with non-tax revenue growing 8% from Rs. 209 billion to Rs. 226.2 billion.

Grants fell 17.3% to Rs. 6.7 billion, compared to Rs. 8.1 billion a year ago.

Recurrent expenditure in the eight months to end August 2025 grew at a slower pace than revenue, growing 11% from Rs. 3.04 trillion a year ago to Rs. 3.4 trillion. Capital and lending excluding repayments fell sharply by 24% from Rs. 435 billion a year ago to Rs. 331 billion.

The Government recorded a primary balance surplus of Rs. 1.27 trillion in the eight months, up 97% from Rs. 648.7 billion a year ago, with overall Budget deficit declining 55% from Rs. 911 billion a year ago to Rs. 411 billion.

CBSL data published debt figures for the first six months of 2025.

Total outstanding Government debt was up 3% from Rs. 28.7 trillion a year ago to Rs. 29.6 trillion, with outstanding foreign debt growing 3.8% from Rs. 10.4 trillion to Rs. 10.8 trillion.

Total domestic Government debt in the seven months grew 2.7% from Rs. 18.3 trillion a year ago to Rs. 18.8 trillion.

Outstanding Treasury Bills fell 3.4% from Rs. 4.1 trillion a year ago to Rs. 3.9 trillion with Bonds up 6% from Rs. 14 trillion a year ago to Rs. 14.9 trillion.

An eight-member team from Ceylinco Life recently attended a five-day training program in Kuala Lumpur, Malaysia, on the theme ‘Lead Forward’. The program focused on Agency Management and provided insights into building stronger, future-ready sales teams.

Training sessions covered a wide spectrum of topics including profitable agency management, dynamic agency building through effective systems, gearing up for affluent markets, creating leaders within agencies, the growing importance of adaptive tech-savvy leadership, and cultivating the Million Dollar Round Table (MDRT) mindset.

The sessions were conducted by eight accomplished Group Sales Managers from Great Eastern Life Insurance in Malaysia and Singapore, led by industry veteran K. Haridas. The program also included office visits to high-performing Group Sales Managers of Great Eastern Life and MCIS Life Insurance Malaysia, where the participants experienced first-hand how successful agencies are run in the region.

This initiative reflects Ceylinco Life’s continuing commitment to enhancing the professional skills and leadership capacity of its team to better serve policyholders, the company said.