Category: Daily Financial Times

Sri Lanka has emerged as one of the fastest-improving emerging market sovereigns for investor relations and debt transparency, with the Institute of International Finance (IIF) ranking the country fourth among the largest improvers in its 2026 assessment, as the Government seeks to rebuild investor confidence following its debt restructuring.

The IIF’s Investor Relations and Debt Transparency Report 2026: The Transparency Dividend found Sri Lanka’s overall Investor Relations Country Score rose to 43.67 out of 50 in 2026 from 37.33 in 2025, placing the country in the top quartile of 57 emerging markets and developing economies assessed against international best practices. The survey average increased only marginally to 37 from 36.1 a year earlier.

The report identified Sri Lanka among a small group of ‘fast movers,’ recording the fourth-largest improvement in investor relations scores with a gain of 6.3 points, behind Vietnam, Belize, and Mozambique. It also highlighted Sri Lanka as one of the strongest performers in improving debt transparency practices during the year.

The Finance and Planning Ministry said Sri Lanka’s improvement was driven by stronger debt transparency and environmental, social and governance (ESG) data and policy dissemination, with the country becoming the fifth-highest improver in both categories.

According to the Ministry, Sri Lanka’s debt transparency ranking improved significantly from 19th among score improvers in 2025 to fifth in 2026, reflecting what it described as sound debt management practices adopted over the past year.

The Ministry attributed the progress to continued efforts by the Public Debt Management Office (PDMO), working with other Government institutions, to strengthen the country’s sovereign investor relations framework through enhanced investor engagement and debt transparency.

It said the improvements were expected to strengthen investor confidence, broaden Sri Lanka’s sovereign investor base, support market access, and enhance the country’s credibility in international capital markets.

The IIF said the findings come as governments worldwide face intensifying competition for global capital amid a structural spending ‘super-cycle’ driven by defence expenditure, clean energy investment, artificial intelligence (AI) infrastructure, and rising healthcare costs, while borrowing costs remain elevated and fiscal space remains constrained.

Against that backdrop, the report argues that transparency has become an increasingly important determinant of borrowing costs for emerging markets.

The IIF said timely, credible, and predictable disclosure of fiscal, debt, and policy information enables investors to distinguish known risks from unknown risks, reducing the uncertainty premium embedded in sovereign borrowing costs. Over time, stronger disclosure and sustained investor engagement can broaden the investor base, reinforce market access, and contribute to more stable sovereign credit ratings.

While transparency cannot compensate for weak economic fundamentals, the report said it allows policymakers to address underlying fiscal challenges more effectively with investor support and is one of the few factors influencing borrowing costs that remains entirely within the control of sovereign authorities.

The SriLankan Airlines Swimming Team made quite a splash at the Travel Trade 2026 Swimming Competition, emerging as the Overall Champions with a significant lead. The team also claimed both the Men’s and Women’s Overall Championship trophies, demonstrating the teamwork, determination and winning spirit that continue to define SriLankan Airlines. The airline’s Swimming Team now hopes to extend its winning streak at the upcoming Mercantile 2026 Swimming Championship in October.

Seylan Bank PLC successfully concluded its participation as the Official Banking and Leasing Partner of the Colombo EV Motor Show 2026, marking the Bank’s first-ever partnership with Sri Lanka’s largest international electric vehicle and motor accessories exhibition.

Held from 26 to 28 June at the Sirimavo Bandaranaike Memorial Exhibition Centre (BMICH), the three-day event attracted more than 17,000 visitors, bringing together leading automotive brands, industry stakeholders and electric mobility enthusiasts.

As the Official Banking and Leasing Partner, Seylan Bank leveraged the exhibition to showcase its comprehensive portfolio of banking products and services, with a special emphasis on Seylan Leasing’s flexible financing solutions for electric vehicles. Throughout the event, visitors received personalised financial consultations while exploring exclusive leasing packages featuring competitive interest rates, attractive processing fee discounts, fast-track approvals and convenient repayment options designed to make vehicle ownership more accessible.

The exhibition featured over 200 trade stalls representing electric vehicles, motor accessories, spare parts, lubricants, tyres, batteries, charging solutions and a wide range of automotive products and services, providing an ideal platform for the Bank to engage directly with prospective vehicle buyers. Seylan Bank also promoted its ‘Speed Drive’ leasing facility, which enables customers to initially pay only the interest component before commencing capital repayments, offering greater financial flexibility. In addition, visitors explored the Bank’s credit card portfolio, digital banking solutions and other financial products tailored to modern lifestyle needs.

Seylan Bank Assistant General Manager – Marketing and Sales Asiri Abhayaratne said: ‘Our participation at the Colombo EV Motor Show 2026 reflects Seylan Bank’s commitment to supporting Sri Lanka’s transition towards sustainable mobility. The overwhelming response from visitors demonstrates the growing demand for flexible and innovative financing solutions, and we are pleased to have connected with thousands of prospective customers while showcasing how Seylan Leasing can make electric vehicle ownership more attainable.’

Through initiatives such as this, Seylan Bank continues to strengthen its position as a trusted financial partner, delivering innovative banking and leasing solutions that support the evolving needs of Sri Lankan consumers while contributing to the country’s growing electric vehicle ecosystem.

Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe has instructed officials to streamline customs clearance procedures for food imports to reduce delays and costs.

An international conference examining South Asia’s most pressing legal and social issues will bring scholars, legal practitioners, judges, journalists and researchers from around the world to Colombo on 28 and 29 July to the historic Galle Face Hotel.

The conference, Law and Society in South Asia: Interdisciplinary Perspectives from the Ground, is co-organised by Dr. Shanthi Senthe of the University of Windsor’s Faculty of Law, in partnership with the Centre for South Asia at Stanford University (Dr. Sharika Thirnagama and Dr. Lalita du Perron) and the Global Legal Studies Center at the University of Wisconsin Law School (Dr. Sumudu Attapatu).

The event drew more than 260 expressions of interest from participants representing institutions including the University of Colombo, University of Jaffna, Stanford University, the University of Wisconsin, Yale University, Harvard University, Columbia University and universities across South Asia and East Asia. From that response, the conference committee selected 103 submissions for the program.

For Senthe, the conference caps years of international relationship-building and reflects the place of Canadian commitment and Windsor Law’s growing influence on the global stage. The partnership grew out of years of her research and scholarly collaborations with colleagues at Stanford and Wisconsin. Senthe also stresses the significance of Sri Lanka as the host country for this conference.

Sri Lanka is more than the host of this inaugural conference-it is central to the conversations the conference seeks to inspire. Home to a distinguished community of legal scholars and a rich intellectual tradition, Sri Lanka provides an unparalleled setting for examining the relationship between law, society, and justice in the Global South. The conference celebrates the country’s academic leadership while creating new opportunities for collaboration between Sri Lankan researchers and leading scholars from around the world. By placing Sri Lanka at the center of these international conversations, the conference affirms the importance of locally grounded scholarship in addressing global legal challenges and shaping more inclusive and equitable futures.

‘These collaborations don’t happen overnight – they are built through years of scholarship, research partnerships and international engagement,’ said Senthe.

While grounded in legal scholarship, the conference’s scope extends well beyond traditional legal disciplines. Participants will explore environmental justice, gender equality, post-conflict reconstruction, governance, economic development and human rights – examining how legal systems intersect with the social, political, cultural and economic realities of the communities they serve.

‘Law doesn’t exist in isolation,’ said Senthe. ‘The goal is to create space for interdisciplinary conversations that examine how legal systems interact with the communities and societies they serve, especially in the Global South.’

That interdisciplinary approach has drawn submissions from researchers in Sri Lanka, India, Nepal, Indonesia, Bangladesh, Pakistan, Thailand, Singapore, China, Hong Kong, Canada and the United States, including academics, legal professionals, judges, investigative researchers and journalists working on legal and social issues throughout the Global South.

Senthe hopes the conference will give local researchers and legal scholars in Sri Lanka a platform to share their expertise with an international audience. ‘We want to create a platform that elevates scholarship coming directly from the region,’ she said. ‘Some of the most important perspectives on South Asian legal and social issues come from scholars who are living, researching and working there.’

The conference underscores Windsor Law’s longstanding commitment to interdisciplinary research and international engagement, and demonstrates how faculty research can build lasting connections between institutions, countries and communities.

‘This is the kind of work universities should be doing,’ Senthe said. ‘Bringing together people with different perspectives, different expertise and different experiences to learn from one another and tackle important questions that affect societies around the world.’

Senthe credits the conference’s success to a network of community support, and acknowledged the Rodzik family, Windsor Law Dean Reem Bahdi, and the colleagues and collaborators whose mentorship, generosity and belief in the vision helped make the conference possible.

As organisers finalise the program, the strong international response signals the growing importance of interdisciplinary approaches to law and society – and the role Windsor Law is playing in leading those conversations.

Hayleys Plantations has joined hands with with UNDP BIOFIN to advance Payment for Ecosystem Services (PES) initiatives across its plantation landscapes through Talawakelle Tea Estates PLC, Horana Plantations PLC and Kelani Valley Plantations PLC

Payment for Ecosystem Services (PES) is a nature-financing mechanism that rewards individuals, communities and organisations for protecting ecosystem services such as water resources, biodiversity, carbon storage and soil conservation. By recognising the economic value of these environmental benefits, PES encourages long-term investment in ecosystem protection.At Bambarakelly Estate in Nuwara Eliya, Horana Plantations PLC has formalised a watershed conservation initiative focused on protecting critical water catchments, enhancing biodiversity, strengthening renewable energy integration and improving climate resilience for surrounding communities and downstream users.

‘Healthy ecosystems are fundamental to the long-term success of our plantations. Through Payment for Ecosystem Services, we are investing in conservation approaches that protect biodiversity, strengthen climate resilience and create shared value for communities and businesses alike. These projects reflect our commitment to integrating sustainability into the way we manage our landscapes for future generations,’ stated Hayleys Plantations Group Managing Director Dr. Roshan Rajadurai.

Commenting on the initiative, UNDP in Sri Lanka Resident Representative Azusa Kubota highlighted, ‘Nature underpins Sri Lanka’s economy, livelihoods and resilience, but conserving it requires innovative and sustainable financing approaches. Through the UNDP BIOFIN initiative, we are working with partners across the country to demonstrate how ‘Payment for Ecosystem Services’ can unlock new investments in biodiversity by recognising the value of the ecosystem services that healthy landscapes provide. We are pleased to partner with Hayleys Plantations in pioneering these efforts, showcasing how businesses can integrate nature into their long-term investment decisions while creating lasting environmental and social benefits. These initiatives represent an important step towards building a nature-positive economy where conservation and sustainable development go hand in hand.’

Two PES projects are currently underway at Talawakelle Tea Estates PLC. Great Western Estate focuses on watershed conservation to improve long-term water security, while Wattagoda Estate integrates biodiversity restoration with sustainable tourism through a partnership with the Pekoe Trail Organisation.’Our partnership with Talawakelle Tea Estates demonstrates how tourism can support biodiversity conservation while creating meaningful benefits for local communities. As Sri Lanka’s first tourism-led Payment for Ecosystem Services initiative, it recognises the value of protecting natural landscapes that underpin visitor experiences and provides a practical model for financing conservation through sustainable tourism,’ stated Pekoe Trail Organisation Executive Director Pramudith Thenabadu.

Furthermore, Kelani Valley Plantations PLC is evaluating a proposed PES model at Halgolla Estate, building on ongoing biodiversity assessments, regenerative agriculture and landscape restoration. The initiative aims to develop a replicable framework for identifying, valuing and financing ecosystem services within commercial plantation landscapes.

Together, these initiatives demonstrate Hayleys Plantations’ commitment to integrating nature-based solutions into commercial plantation management. By combining scientific research, measurable environmental outcomes and collaborative partnerships, the company is helping establish scalable models for sustainable plantation management that strengthen both ecological resilience and long-term economic value.

Universal College Lanka (UCL) officially launched UCL LaunchPad, its new student entrepreneurship and intrapreneurship programme, at the UCL Rajagiriya Campus on 10 July 2026. The initiative marks a significant milestone in how UCL connects higher education, innovation, and industry collaboration.

The event brought together students, academics, entrepreneurs, industry leaders, and specialist practitioners, reflecting UCL’s commitment to preparing graduates who can navigate complexity and create value in a rapidly changing world.

“As a university, we have two choices. We can keep preparing students for jobs that are disappearing, or we can prepare them to create the work that doesn’t exist yet,” said Dr. Chamila Ariyananda, CEO of UCL, who conceived and championed the programme. “LaunchPad is us choosing the second path, very deliberately.”

To design the programme, Dr. Ariyananda engaged Ganga Iddamalgoda, Open Innovation Specialist and Founder of Gadfly Innovation, trained in Disruptive Strategy at Harvard Business School. UCL LaunchPad is structured as a journey that emphasises founder identity, real problem discovery, rapid validation, and mentor-guided pivots.

A defining feature of the programme is its deep integration with industry. Students will work on live business challenges provided by partner organisations, gaining hands-on experience while developing solutions to real-world problems. The founding partner cohort includes MAS Holdings, TRACE, OREL Corporation, Hatton National Bank, Sino Lanka, and other ecosystem collaborators.

An industry panel at the launch highlighted why this partnership model matters. Heminda Jayaweera, Executive Director of TRACE, noted that Sri Lanka’s innovation ecosystem remains fragmented, and that meaningful innovation often happens at the periphery where diverse people interact. TRACE joins LaunchPad as an ecosystem partner, connecting student founders with spaces and practitioners that enable those collisions.

Chandima Cooray, Chief Innovation Officer of HNB and Board Director of GovTech, spoke to the urgent need for graduates who can engage with complex, constrained problems in areas such as financial services and digital public infrastructure. Dr. Rangika De Silva, Director – Innovations at OREL, emphasised the importance of building sustained innovation capacity inside organisations, rather than relying on one-off initiatives. Prabhash Hettiarachchi, Programme Architect at MAS Holdings, observed that when students work on live industry problems, the quality of thinking improves on both sides.

Over sixteen weeks, the first cohort of student founders will progress through a structured journey: starting with self as founder, moving into problem clarity and model validation, and then into live pivot cycles with industry feedback, culminating in a Demo Day in late October 2026.

Through UCL LaunchPad, Universal College Lanka reinforces its vision of education that extends beyond the classroom, empowering students to transform ideas into meaningful impact in partnership with industry.

Trinity College produced one of the finest displays this season to overpower Royal College 39-10 in the second leg and regain the prestigious Bradby Shield at the Trinity College Rugby Stadium in Pallekele yesterday. The Lions also completed a commanding aggregate victory of 72-20 after winning both legs in emphatic fashion.

Trinity scored five tries, four conversions and two penalties to Royal’s two tries.

At the short breather, Trinity led 13-0.

The home side looked settled and full of confidence from the opening whistle, dominating possession and territory during the opening exchanges. Fly-half Shan Althaf controlled proceedings brilliantly with his tactical kicking and game management, pinning Royal deep inside their own half. Achintha Jayasena, Evin Jayasena, Minula Yaddehige, Hamza Abdeen and Udan Wijekoon played their hearts out in their final outing in the school colours.

Trinity opened the scoring in the ninth minute when Althaf landed a penalty from 30 metres out before adding another successful kick from 35 metres to extend the lead to 6-0. The Lions continued to apply pressure through a well-organised forward effort, well supported by their three-quarter line.

The breakthrough try arrived just before the interval when Hamza Abdeen launched a superb attacking movement, allowing Evin Jayasena to crash over. Amher Faizal added the conversion as Trinity went into the break with a deserved 13-0 advantage after enjoying the lion’s share of possession.

Royal responded immediately after the restart with skipper Disas Pathirana crossing for an unconverted try, but Trinity answered in devastating fashion. A sweeping three-quarter movement ended with Faizal touching down before Althaf converted to make it 20-5.

The Lions then took complete control of the contest. Maduranga de Silva finished off a brilliant ghosting run for Trinity’s fourth try, with Althaf once again adding the extra points. Moments later, the outstanding Althaf produced the individual moment of the match, sprinting nearly 40 metres for a superb solo try, while Faizal converted magnificently from near the corner flag.

Nahil Jayah added Trinity’s fifth try to put the result beyond doubt before Pathirana scored a late consolation try for Royal. Trinity finished with five tries, four conversions and two penalties against Royal’s two unconverted tries.

Japanese referee Yusaka Murata officiated in this encounter.

Earlier in the day, Trinity also dominated the junior encounter with a convincing 29-0 victory over Royal, completing a memorable day for the school by clinching the Simithrarachchi Trophy as well.

The Sri Lanka’s Inland Revenue Department (IRD) closed 2025 with a headline achievement: income tax collection reached Rs. 1,131.33 billion, exceeding its target by 1.41% and growing 10.47% over 2024. On paper, this looks like a tax system firing on all cylinders. Underneath the topline number, however, the IRD’s own 2025 Annual Performance Report tells a more uncomfortable story – one where salaried, middle-income earners are shouldering a disproportionate and increasingly automatic share of the burden, while large parts of the tax base remain only lightly touched by enforcement.

A tax bracket structure that hits 36% too soon

Under the Individual Income Tax rates effective from 1 April 2025, tax begins just after Rs. 1,800,000 of annual taxable income (Rs. 150,000 a month) where the next Rs 1 Mn of annual income is taxed at 6%. From there, the rate climbs as follows:

By the time a salaried professional earns roughly Rs. 358,333 a month (i.e Rs. 4.3 million a year) – a comfortable but hardly extravagant income in today’s cost-of-living environment they are already inside the top 36% bracket.

The Government did raise the personal relief threshold from Rs. 1,200,000 to Rs. 1,800,000 starting in the 2025/2026 assessment year, a welcome adjustment, but the underlying bracket structure still compresses a wide range of middle earners into higher marginal rates within a fairly narrow income band.

In practice, a salaried employee may carry significant financial commitments – housing loan repayments, motor vehicle lease installments – yet is entitled to no deduction against employment income; tax is levied on the gross salary regardless. A deduction for housing loan interest was once available, but no such relief exists under the current regime, squeezing middle-income earners further.

The APIT reality: automatic, inescapable, and concentrated on the middle

The report’s Advance Personal Income Tax (APIT) data gives a granular picture of who pays the tax. A total of the 2,547,322 employees whose records were analysed for the 2024/2025 assessment year, about 75.6% fell below the taxable threshold and was not subject to APIT. That leaves 622,419 employees, actually carrying the income tax load.

As per the statistics presented in the Annual Performance Report:

Employees earning between Rs. 1.2 million and Rs. 3.7 million annually made up 395,024 people, or 63.5% of everyone actually paying APIT. Yet they contributed only about 20.5% of total APIT revenue (Rs. 39.36 billion of Rs. 191.9 billion).

Employees earning above Rs. 3.7 million made up just 13.4% of taxed employees but contributed 78.4% of APIT revenue.

At first glance, this looks progressive – and mechanically, it is: effective tax rates rise steadily. The problem is less about the curve itself and more about who is structurally unable to avoid paying it. Employment income is withheld automatically at source, every month, with no room for deferral, deduction-shopping, or under-declaration. The salaried employee cannot choose not to comply. Therefore, it is the salaried employees who are getting squeezed, especially the middle-income earners.

Compliance data exposes the real imbalance

This is where the report’s filing-compliance statistics matter most. For the 2024/2025 year of assessment:

Only 25% of Individual Income Tax (IIT) returns were submitted on time, rising to 27% within a month. That’s an improvement on the prior year’s 14%, but still means three in four self-filed individual returns miss the deadline.

Among ‘Other Taxpayers’ (non-large) filing APIT as employers, only 15% filed on time, against 65% for Large Taxpayers.

For Advance Income Tax (AIT)/withholding on non-employment income, Non-Large Taxpayers filed on time just 10% of the time, compared to 71% for Large Taxpayers.

In other words, the segment of the tax base with the most discretion over what and when to declare – the self-employed, smaller employers, and non-payroll income earners – is also the segment with the weakest compliance. Meanwhile, the segment with the least discretion, the salaried employees under automatic withholding – complies by default, every single month, with no filing gap possible.

Th corporate income tax collection brought in Rs. 669.64 billion, or 59% of all income tax collected, versus Rs. 461.68 billion (41%) from the non-corporate segment that includes ordinary individuals. The imbalance is about enforcement asymmetry. A dependable, easily taxed, middle-income salaried base is being asked to fill compliance gaps left by harder-to-tax segments of the economy.

The wider workforce the tax net never reaches

The compliance gap looks even starker when set against Sri Lanka’s total workforce. The Department of Census and Statistics puts the country’s employed population at 7,949,751 for 2024. Yet the IRD’s APIT dataset for 2024/2025 covered only 2,547,322 employees – a shortfall of roughly 5.4 million people, or about 68% of everyone employed in the country.

Employment-status data from the Labour Force Survey explains most of this gap:

Two distinct problems sit inside that gap. First, roughly 37% of the employed population – own-account workers, contributing family workers, and employers – earns no ‘salary’ that any employer could withhold tax from. Their obligation runs entirely through self-filed Individual Income Tax returns, where on-time compliance is just 25%. This slice of the workforce is structurally outside automatic enforcement, not merely overlooked.

Second, and more strikingly, even among the roughly 5 million people who are formal employees, APIT captured only about half. That points to a large share of nominally ‘formal’ employment sitting with employers who either never registered for APIT or registered but did not file consistent with the report’s own finding that just 16% of APIT-registered employers filed on time.

Put together, Sri Lanka’s income tax system reliably reaches only around a quarter of the employed population: the slice whose employers both register for APIT and file. That slice is disproportionately made up of salaried, payroll employees at larger, more visible firms – precisely the group with the least ability to avoid withholding once registered. Everyone else, whether self-employed or working for an employer who never entered the system, sits largely beyond the tax net’s current reach. The Inland Revenue Department therefore must widen the tax base and administer the collection, simply not raising the load on the salaried employees it already has firmly in hand.

Disproportionate wealth distribution

Another revelation from the statistics is the average income per employee. Dividing each band’s total gross remuneration by its employee count gives a sense of the income levels behind these figures. Average gross remuneration ranged from roughly Rs. 44,000 a month for employees below the tax threshold to about Rs. 615,000 a month for those in the top APIT band – a gap of nearly 14-fold between the extremes of the reported income distribution, though the open-ended top bracket means this ratio is driven partly by high earners well above Rs. 3.7 million. Income inequality is evident, with a small group receiving a disproportionately large share of remuneration.

This pattern is not unique to employment income. Wealth in Sri Lanka remains concentrated among a relatively small segment of the population, and tax policy has not kept pace with that concentration. There is no clear mechanism in place to ensure this segment contributes a fair proportion of tax revenue. Other tax administrations have moved to close a similar gap by redirecting enforcement toward the top of the income distribution rather than relying on withholding alone. The United States’ Internal Revenue Service, for instance, used dedicated funding under the 2022 Inflation Reduction Act to rebuild its capacity to audit high-income and high-wealth individuals – a deliberate reversal after audit rates on million-dollar earners had fallen from over 7% in 2011 to under 1% by 2019, purely for lack of resources to examine their more complex returns. Sri Lanka cannot continue to lean as heavily as it does on indirect taxes; it needs to raise a larger share of revenue from income tax, and specifically from those at the top of the income distribution.

The asymmetry is stark in practice. Employment-income earners are taxed automatically and promptly under APIT, and, wary of the consequences of non-compliance, many also file the simplified return. Self-employed and business-owning high earners face comparatively little of that same scrutiny. The result is a tax administration that polices most closely the segment of taxpayers least able to evade it, while the wealthier, harder-to-tax self-employed population remains largely outside its focus.

For policymakers looking to rebalance this, the report points to a few concrete levers:

1. Widen the compliance net before raising the load on the compliant. With IIT on-time filing at just 25% and Non-Large Taxpayer AIT compliance at 10%, there is substantial revenue sitting outside the system that has nothing to do with PAYE employees.

2. Reassess bracket compression. The jump from a 6% to a 36% marginal rate within a Rs. 1.5 million income band means salaried professionals hit the top rate at income levels that, adjusted for living costs, are far from elite.

3. Track relief adequately against inflation. The recent increase in personal relief to Rs. 1,800,000 is a step in the right direction, but its adequacy should be reviewed regularly.

4. Sri Lanka must ensure broader shoulders bear more of the tax burden – but first, it needs to widen the tax net, so the tax office isn’t repeatedly burdening the same set of taxpayers.

The IRD’s 2025 results are, administratively, a genuine success story – revenue targets were met, digital filing improved, and compliance rates rose year-on-year. But success in collection should not obscure who is actually paying. Until enforcement reaches as far as withholding already does, the system’s progressivity will remain true only on paper – and the bill, in practice, will keep landing on middle-income, salaried earners.

Lanka IOC PLC (LIOC) has expressed its firm belief that Sri Lanka possesses one of the most attractive opportunities in the world for the development of its petroleum sector, provided planned initiatives and investments are implemented in a timely and expeditious manner.

This emphasis comes from Lanka IOC PLC Chairman Anuj Jain during his recent visit to Colombo to attend the company’s Annual General Meeting (AGM). Jain currently serves as Director – Finance and Chief Financial Officer of Indian Oil Corporation Ltd., a Fortune 500 global energy major. He also shares a strong association with Lanka IOC, having previously served as the company’s Senior Vice President from 2015 to 2018.

Drawing on his extensive experience in the energy sector and his deep familiarity with Sri Lanka’s petroleum industry, Jain expressed confidence in the country’s potential to emerge as a significant regional energy and petroleum hub.

Jain emphasised that petroleum would continue to play a critical role in ensuring energy security and shaping geopolitical dynamics. While acknowledging the importance of investments in renewable energy and the transition to cleaner sources, he noted that the oil sector remains indispensable for sustaining a nation’s energy needs and economic development.

He further observed that many countries are actively seeking to bridge the gap between domestic refining capacity and growing fuel demand, particularly considering the widening differential between crude oil prices and the value of refined petroleum products. This trend has reinforced the strategic importance of expanding refining and downstream infrastructure.

In an exclusive interview with the Daily FT along with Lanka IOC Managing Director K. Raghu, Chairman Jain highlighted the need for Sri Lanka to undertake major investments across the petroleum value chain, including the enhancement of refining capacity, pipeline networks, port facilities, fuel storage infrastructure, and other critical supply chain assets.

SL a significant regional energy and petroleum hub

According to Jain, strengthening the country’s petroleum sector should be viewed as a strategic energy security initiative that can deliver long-term economic benefits. Given Sri Lanka’s unique location at the crossroads of major international shipping routes in South Asia, he expressed confidence that the country is well positioned to develop into a significant regional energy and petroleum hub.

Jain further emphasised that diversifying sources of crude oil and petroleum product supplies will be equally important in strengthening supply resilience, enhancing energy security, and mitigating the impact of global market disruptions.

Reflecting on his previous tenure in Sri Lanka from 2015 to 2018, he noted that many of the key discussions and strategic plans for the country’s petroleum sector have already been identified and debated.

‘Having been in Sri Lanka between 2015 and 2018 and being part of various stakeholder discussions, I believe the time has now come to translate those discussions into action. The roadmap is well understood. What is required now is the resolve and urgency to execute it,’ Jain said.

For its part, Lanka IOC has consistently invested in the development of Sri Lanka’s energy ecosystem for more than two decades. Beginning with the retailing of automotive fuels, the company has progressively diversified its portfolio to include lubricants, bitumen, marine fuels, petrochemicals, greases, and a range of energy-related solutions. Lanka IOC has also undertaken significant investments in the modernisation of the Lower Tank Farm in Trincomalee, reinforcing its commitment to strengthening the country’s energy infrastructure.

Jain explained that in an energy landscape increasingly shaped by regulatory interventions, pricing controls, global market volatility, and evolving customer expectations, sustainable profitability cannot depend solely on conventional fuel retailing. Diversification, therefore, is a strategic imperative aimed at creating long-term value, improving business resilience, and unlocking new growth opportunities for the company.

‘Lanka IOC is one of Indian Oil’s key overseas subsidiaries, and from day one, our focus has been on building and strengthening energy infrastructure,’ Jain said.

He further highlighted Indian Oil’s expanding international presence, noting that the company has invested and established operations across more than 10 countries, including Mauritius, Nepal, Bhutan, Bangladesh, Singapore, Oman, the United Arab Emirates, Russia, Canada, the Netherlands, and Sweden. These global investments reflect Indian Oil’s commitment to enhancing its international footprint, strengthening supply chains, and leveraging global expertise to support the sustainable growth of subsidiaries such as Lanka IOC.

He stressed that in times of crises, being a highly import-dependent economy, petroleum storage is the most important thing. A recent wake-up call was the unprecedented closure of the Strait of Hormuz creating havoc in supply chains.

‘Sri Lanka has the potential to become one of the most strategic energy storage hubs in the region,’ Jain emphasised, highlighting the country’s unique geographical advantage and the significant opportunity to develop world-class petroleum storage infrastructure.

Pursue resilient mix in its energy basket

He also advised Sri Lanka to pursue a resilient mix in its energy basket, which, at present, comprises fossil fuel, hydro, coal, solar, and wind. He noted that the rapid expansion of renewables is not coming at the expense of petroleum but coal. The world is also increasingly moving towards e-mobility as the challenge of net zero targets looms and the growing need for energy-guzzling data centres.

Jain also explained that in view of supply shocks due to geopolitical tensions, countries are also moving to coal gasification whilst battery/storage bottlenecks are being addressed in the solar sphere.

The Lanka IOC Chief is also of the view that Sri Lanka is blessed with the best of opportunities to expand wind power, which is a more competitive source.

LIOC an integral part of solutions in times of energy crises

Focusing on operations in Sri Lanka, Jain said he was happy that Lanka IOC has done extremely well amidst multiple challenges.

‘More importantly, Lanka IOC has remained an integral part of solutions in times of energy crises. This has been done with a lot of engagement with all stakeholders. ,’ Jain said.

He expressed confidence that Lanka IOC will be able to support in time of need.

‘IOC also stands ready to partner in the development of refining and creation of any new storage facility in Sri Lanka. IOC will be happy to both contribute technically, commercially, and financially,’ he said.

‘During times of crisis, we have consistently worked alongside the Government of Sri Lanka not only on pricing-related matters but also through Government-to-Government initiatives. As a responsible and leading national oil company of India, Indian Oil has always placed service to the nation above short-term commercial considerations, and Lanka IOC carries the same DNA. Our purpose is not merely to generate profits, but to serve the people and support the country’s energy security,’ Jain said.

Jain noted that the above philosophy has guided the company’s operations throughout its two-decade presence in Sri Lanka, particularly during periods of economic and energy challenges. By ensuring continuity of fuel supplies, supporting national priorities, and investing consistently in critical energy infrastructure, Lanka IOC has remained a trusted partner in strengthening the country’s energy resilience.

Lanka IOC PLC in FY26 saw revenue of Rs. 280.65 billion, up from Rs. 276.29 billion in FY25 and Rs. 90 billion in FY21. The LIOC Chief is also of the view that the continuation of cost-reflective pricing is critical to ensure viability of companies, better demand management, as well as foster new investments.

‘Any import-dependent country should have an international link pricing for their petroleum products,’ he stressed.

Commitment to Sri Lanka

Jain reaffirmed Lanka IOC’s long-term commitment to Sri Lanka, stating that the company will continue to expand its presence by adopting global best practices while leveraging the unwavering support of its parent company, Indian Oil Corporation Ltd., particularly during periods of market volatility and crisis. He noted that this strong backing provides stability and resilience to Sri Lanka’s fuel industry and the broader energy sector.

‘We are also committed to bringing further investments into the country, subject to the necessary Government approvals,’ he added.

Looking ahead, Lanka IOC will continue to transform its conventional fuel retail outlets into integrated multi-energy centres, offering a broader range of energy solutions including electric vehicle (EV) charging facilities and other customer-centric services. This initiative reflects the company’s long-term strategy of supporting Sri Lanka’s evolving mobility landscape while remaining a future-ready energy solutions provider.

Welcomes new competition but stresses on importance of safety standards

Commenting on the entry of new participants into Sri Lanka’s fuel retail market, Jain welcomed increased competition, observing that a competitive marketplace encourages higher standards of efficiency, innovation, and customer service while ultimately benefitting consumers.

‘Healthy competition always brings out the best in us and delivers greater value to customers. However, the one area where there can never be any compromise is safety. The petroleum industry requires substantial investment in safety systems, infrastructure, and operational excellence. While compromising on safety may reduce costs in the short term, sustainable success can only be achieved through the highest standards of safety, integrity, and ethical business practices,’ he emphasised.

At the parent company level, Indian Oil is further strengthening its global energy footprint through the planned establishment of a joint venture in Singapore with a leading global energy company. This strategic initiative is expected to significantly enhance Indian Oil’s international trading capabilities and expand its access to global energy markets.

Combined with ongoing investments in India to increase refining capacity and strengthen export operations, these efforts will further reinforce Indian Oil’s integrated global supply chain and trading network. This enhanced capability is expected to support Lanka IOC’s long-term growth strategy, improve supply reliability, and contribute meaningfully to Sri Lanka’s energy security and economic development.