Category: Daily Financial Times

The secondary Bond market kicked off the new trading week on a positive note yesterday, with yields edging lower across selected tenors while the rest of the yield curve largely consolidated. The long end of the yield curve saw rates decline while the short to the belly end held broadly steady. Activity and transaction volumes remained robust, supported by the execution of several sizeable block transactions.

The 15.12.28 maturity traded at the rate of 10.10% and the 15.12.29 at 10.30%. The 01.08.30 and 15.10.30 traded within the ranges of 10.50%-10.46% and 10.55%-10.50% respectively. The 01.02.31 traded at 10.60%. The 15.01.33 and 01.11.33 traded at the rates of 11.20% and 11.30%-11.35% respectively. The 15.10.34 traded down the range of 11.50%-11.45%, the 15.08.36 traded lower at 11.78% and the 01.07.37 at 11.82%.

On the inflation front headline inflation, as measured by the Colombo Consumer Price Index (CCPI), accelerated to 8% year-on-year in August 2026, up from 7.3% in July, according to the Department of Census and Statistics.

In the money market, the net liquidity surplus was recorded at Rs. 132.33 billion. Rs. 82.77 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 0.44 billion drawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%

In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka absorbed Rs. 70 billion in liquidity through a series of Repo auctions. This comprised Rs. 40 billion via an overnight Repo auction and Rs. 10 billion through a 2-day term Repo auction, both at a weighted average yield of 8.75%, together with Rs. 20 billion through a 30-day term Repo auction at a weighted average yield of 9.19%.

The weighted average yields on overnight call money and repos were recorded at 8.85% and 8.91% respectively.

Forex market

The USD/LKR rate on spot contracts was seen closing at Rs. 328.10/328.30 yesterday, with the rupee depreciating marginally from Rs. 327.98/328.04 recorded on the previous day.

The total USD/LKR traded volume for 28 August amounted to $ 170.25 million.

Sri Lanka’s national official poverty line rose to Rs. 17,679 per person per month in July 2026, up 0.5% from the previous month, according to the latest Department of Census and Statistics (DCS) data.

The minimum monthly expenditure required per person to meet defined basic needs increased by Rs. 87 from Rs. 17,592 in June.

The threshold was 7.2% higher year-on-year (YoY), rising by Rs. 1,195 from Rs. 16,484 in July 2025.

The July figure was also the highest national poverty line in the monthly series since January 2025. It has increased by Rs. 949, or 5.7%, from Rs. 16,730 in January this year.

Colombo recorded the highest district poverty line in July at Rs. 19,067 per person per month, followed by Gampaha at Rs. 18,969 and Nuwara Eliya at Rs. 18,592.

At the other end, Monaragala recorded the lowest threshold at Rs. 16,904, followed by Kilinochchi at Rs. 17,080 and Hambantota at Rs. 17,177. The difference between the highest and lowest district thresholds was Rs. 2,163 per person per month.

The increase in the poverty line comes alongside a rise in consumer prices. The National Consumer Price Index (NCPI) increased to 223.4 in July, with YoY inflation accelerating to 7.2%, according to the DCS.

The official poverty line is a statistical threshold representing the minimum expenditure required to meet defined basic needs. It is not an estimate of average monthly household spending or a measure of the income required to maintain a normal standard of living.

The distinction has become relevant amid debate over whether a person can meet basic needs on less than Rs. 18,000 a month. A household being above the official poverty line does not necessarily mean it is free from financial pressure.

Attention is also turning to the data underpinning poverty measurement and the need for current information on household spending patterns. The DCS says the Household Income and Expenditure Survey (HIES), which provides the basis for poverty indicators, is generally conducted once every three years.

The DCS release calendar shows that a final bulletin from the 2025 HIES is scheduled for release between 31 August and 30 October, while the Poverty Indicators 2025 bulletin is scheduled between 30 October and 30 December.

The prospect of updated household expenditure data is significant given that the poverty benchmark has been based on older consumption patterns adjusted for subsequent price movements. It also comes as debate continues over inflation targeting and whether headline price indices adequately capture changes in household costs.

Updated HIES and poverty data should therefore provide a more current basis for assessing minimum household needs, changes in consumption patterns, and the extent to which movements in measured inflation reflect the cost pressures faced by households.

Agriculture in Sri Lanka, and in many other countries, is sitting on a ticking time bomb. The burning signs are no longer hidden. We see it in erratic monsoons, prolonged dry spells, flash floods, landslides, heat stress, damaged irrigation systems and repeated crop losses. Now another warning light is flashing. On 13 August 2026, NOAA reported that El Niño was strengthening, with a greater than 90% chance of becoming a very strong event. The Department of Meteorology of Sri Lanka had warned of substantial rainfall changes, while the Cabinet of Ministers has appointed special committees for possible water, electricity and food crises.

The question is whether we will act before the crisis, or once again display our well-practiced national experience of becoming surprised by something we were warned about months earlier. In Sri Lanka, an early warning sometimes seems to be heard by the relevant authorities only after the event has occurred.

From cyclone to El Niño: climate whiplash

Cyclone Ditwah in November 2025 showed the other face of climate vulnerability. The Food and Agriculture Organisation of the United Nations (FAO) reported that about 106,000 hectares of paddy, roughly one-fifth of the cultivated area in the Maha season sown at that stage, were partially damaged or lost. More than 227,000 farmers were affected, together with livestock, fisheries, irrigation infrastructure and household food stocks. FAO subsequently estimated that more than 1.1 million people required urgent food-security, agricultural and nutrition assistance.

The warning is not confined to Sri Lanka. The catastrophic disaster in Nepal in August 2026, triggered by a glacier collapse and cascading landslide and flash flooding near the Nepal-China border, killed hundreds, affected more than 90,000 people and destroyed roads, bridges and other infrastructure. It is true that the precise contribution of climate change to any such single event requires scientific attribution, but rapidly warming high-mountain environments are creating new and cascading risks. Nepal is a grim reminder that climate hazards do not read development plans before arriving.

Sri Lanka therefore faces not one climatic threat but climate whiplash, with too much water, too little water, excessive heat and increasingly unreliable timing for farming.

Sri Lanka cannot prevent El Niño, cyclones, droughts or extreme rainfall. But, hazards become disasters when they meet vulnerability. The climate may create the hazard, but the policy determines how exposed we remain. Food security must become the organising principle of agricultural climate policy

The food-security problem

Climate vulnerability is sometimes discussed as though it were mainly a farmer-welfare issue. It is much bigger. Food security has four dimensions, namely, availability, access, utilisation and stability. Climate extremes can damage all four.

A drought or flood reduces availability by lowering food production including paddy, maize, vegetable, fruit, plantation crops, livestock, poultry and fish. Reduced supply can raise prices, undermining access for low-income consumers. Loss of diverse foods can worsen nutrition. Repeated shocks destroy stability by making both household income and national food supply unpredictable.

Sri Lanka has little room for complacency. The World Food Program (WFP) and FAO estimated that 28% of the population was moderately acutely food insecure during the 2022 economic crisis. Conditions subsequently improved, but vulnerability did not disappear. Climate shocks arrive on top of economic vulnerability. A failed harvest is not simply fewer tons in an agricultural statistics table. It can become higher food prices, lower farmer profits, increased imports, pressure on foreign exchange, poorer diets and greater fiscal expenditure. We may import food after a crisis, but unfortunately, we cannot import lost livelihoods of farmers so easily.

We have policies: implementation remains the issue

Sri Lanka is certainly not short of policies, strategies, plans, committees and elegantly bound reports. If agricultural resilience could be achieved through documentation alone, we would probably be exporting it by now. The Nationally Determined Contributions (NDC) 3.0 for 2026-2035 for reducing greenhouse gas emissions (GHGs) and minimising the rate at which climate change is happening, has already identified sensible priorities including climate-resilient agriculture, improved water management, climate information, diversified production and reduced post-harvest losses.

The Government has recognised the El Niño threat and established a high-level coordination mechanism. The Climate Caucus of the Parliament of Sri Lanka provides a cross-party parliamentary space to inform and mobilise Members of Parliament on the climate emergency. In August it specifically called for moving beyond reactive crisis management towards ‘Anticipatory Crisis Governance’, with discussions covering El Niño, agriculture, water, disaster management and environmental management. That role should be strengthened: Parliament can demand cross-ministerial preparedness, scrutinise budgets for resilience, track implementation, promote science-based legislation and keep climate risk above the electoral cycle.

The real question is whether these arrangements change decisions impact fully and timely, before the next shock. Too often we respond to drought with relief, floods with compensation, shortages with imports and surpluses with emergency discussions on storage. It is an impressive system for treating symptoms while preserving the disease.

The vulnerability extends beyond the farm

A crisis can disrupt food systems far beyond farm boundaries, affecting the supply chains. A surviving vegetable crop still becomes a loss if electricity, cold storage or transport fails. Milk production is meaningless if chilling and collection collapse. Paddy recovery is constrained when irrigation canals are damaged or reservoirs are poorly managed. Food security must be planned from watershed to consumer.

The upper watersheds of Sri Lanka deserve particular attention. Degraded slopes, inappropriate land use, erosion and inadequate drainage amplify downstream flooding, sedimentation and dry-season water scarcity. Watershed restoration is not an environmental ornament; it is food-security infrastructure. Irrigation can no longer mean only delivering water. In a climate of extremes, systems must manage scarcity and excess through drainage, storage, groundwater recharge, tank-cascade restoration and catchment management.

The ticking time bomb is not climate change alone. It is climate change combined with degraded landscapes, fragile supply chains, fragmented institutions and delayed decisions. Sri Lanka now has an El Niño warning before us. From Ditwah to Nepal, we have ample evidence of what cascading climate disasters can do

Seven actions before the fuse of the time bomb burns shorter

(1) Make climate-risk information operational. This has to be done immediately, as seasonal and sub-seasonal forecasts, reservoir levels, soil moisture and short-term weather information will directly influence cultivation calendars, crop choices, fertiliser timing and irrigation decisions. A forecast that changes a decision of the farmer is adaptation.

(2) Prepare agricultural contingency plans before each high-risk season. Urgent attention should be on identifying exposed districts, crops and irrigation schemes, establishing water-allocation priorities, securing seed and planting material, preparing alternative crop recommendations, protecting livestock feed and drinking water; and pre-position recovery of resources. Planning after reservoirs are empty would be admirably precise, but late.

(3) Establish an integrated national agricultural climate-risk platform linking Departments of Meteorology, Irrigation, Agriculture, Animal Production and Health, and Agrarian Development, Mahaweli Authority of Sri Lanka, Disaster Management Center, Research Institutions, Universities and Markets. Data scattered among institutions cannot protect a national food system. Climate is already integrated; our institutions should consider trying the same.

(4) Diversify food-production risk through crop diversification, mixed farming, homegardens and locally adapted production systems rather than overdependence on a few crops, narrow planting windows and concentrated supply chains.

(5) Protect what is produced. Drying, storage, cold chains, milk chilling, processing and decentralised logistics can prevent a production shock from becoming a consumer-price shock. Agricultural insurance, contingency finance and rapid recovery mechanisms must complement these investments.

(6) Accelerate development and deployment of varieties tolerant to drought, heat, flooding, salinity and emerging pests and diseases. ‘Climate resilient’ should be a measurable breeding objective, not decorative vocabulary in project proposals.

(7) Redesign water management from catchment to field. Restore tanks and cascades, protect watersheds, improve soil-water retention, modernise irrigation scheduling and invest in drainage.

Stop rewarding vulnerability

Every public agricultural investment should face a simple question: does it reduce future climate risk, or merely reconstruct yesterday’s vulnerability? Rebuilding repeatedly damaged infrastructure to the same standard is not adaptation; it is an expensive subscription to the next disaster. Encouraging production in chronically unsuitable locations and compensating predictable losses is not farmer protection. Subsidising inputs without linking support to better water, soil and risk management may lower today’s cost while quietly increasing tomorrow’s bill.

Agricultural productivity and adaptation cannot be separated. Higher and more stable yields reduce production cost per kilogram. Better nutrient management lowers costs and emissions. Better weather information prevents wasted inputs. Better storage protects farmer income and consumer supply. The objective should be more food per unit of water, land, input, and climate risk.

Parliament can demand cross-ministerial preparedness, scrutinise budgets for resilience, track implementation, promote science-based legislation and keep climate risk above the electoral cycle. The real question is whether these arrangements change decisions impact fully and timely, before the next shock. Too often we respond to drought with relief, floods with compensation, shortages with imports and surpluses with emergency discussions on storage. It is an impressive system for treating symptoms while preserving the disease

Defusing the bomb

Sri Lanka cannot prevent El Niño, cyclones, droughts or extreme rainfall. But, hazards become disasters when they meet vulnerability. The climate may create the hazard, but the policy determines how exposed we remain.

Food security must become the organising principle of agricultural climate policy. It should not merely be the amount of rice produced in a normal year, but the capacity of the entire food system to continue supplying adequate, nutritious and affordable food when the year is anything but normal.

The ticking time bomb is not climate change alone. It is climate change combined with degraded landscapes, fragile supply chains, fragmented institutions and delayed decisions. Sri Lanka now has an El Niño warning before us. From Ditwah to Nepal, we have ample evidence of what cascading climate disasters can do.

We can finance preparedness today, or finance crop losses, food imports, compensation and recovery tomorrow. We have become rather efficient at budgeting for the consequences of vulnerability, but it is time to become equally efficient at preventing them.

One of those options is considerably cheaper. The clock is already ticking.

Sri Lanka is to receive a $ 1 million World Bank grant to prepare an 18-month project aimed at upgrading nature-based tourism destinations, as the Government seeks to address the weak growth in tourism revenue despite steadily rising visitor arrivals.

The Cabinet of Ministers last week approved accepting the grant, under the World Bank’s Grant Facility for Project Preparation (GFPP), to finance groundwork for the proposed Tourism for Heritage Resilience Inclusion and Value-driven Employment (THRIVE) – Nature project.

The proposed project is expected to focus on habitat improvement and tourism infrastructure development in nature-based destinations, while also strengthening programs developed under the World Bank-funded Ecosystem Conservation and Management Project.

The move comes against a broader concern that Sri Lanka’s tourism recovery has not yet translated into a commensurate increase in earnings. Although tourist arrivals have been gradually increasing, the Government has identified the low rate of tourism revenue growth as a particular concern in relation to the country’s substantial potential for nature-based tourism.

The preparation funding could therefore pave the way for a larger investment program focused on improving the quality and economic value of nature-based tourism, rather than relying primarily on increasing visitor volumes.

The proposed intervention is particularly significant given Sri Lanka’s extensive portfolio of national parks, forests, wetlands and other biodiversity-rich destinations, which remain central to the country’s positioning as a nature and adventure tourism destination.

By combining habitat conservation with infrastructure development, the THRIVE-Nature concept also seeks to address the longstanding challenge of balancing increased tourism activity with environmental sustainability.

The proposal to this effect was submitted by Environment Minister Dr. Dammika Patabendi.

Researcher from Kaspersky’s Global Research and Analysis Team (GReAT) recently gave the lowdown on how SilverFox – one of the most active Advanced Persistent Threat (APT) groups – piggybacks on the rising Artificial Intelligence (AI) use in industries in Asia Pacific (APT).

Kaspersky GReAT lead security researcher Ye Jin (Seth) warned that fast-evolving Artificial Intelligence (AI) capabilities are ushering in an era where cyberattacks turn from ‘specialised team operations’ to ‘low-cost solo raids’.

During Kaspersky’s Cyber Security Weekend in Guangzhou, China, researcher from the global cybersecurity and digital privacy company detailed the latest tactics being used by SilverFox, a major threat group active across the APAC region.

The threat actor, detected by Kaspersky Global Research and Analysis Team (GReAT) researchers back in December 2025, is known for employing a multi-stage approach to payload delivery and utilises a segmented infrastructure, using different addresses and domains for various stages of the attack. These techniques are designed to minimise the risk of detection and prevent the blocking of the entire attack chain.

Its most recent campaign targeted companies in India, Indonesia, South Africa and Russia across industrial, consulting, trade and transportation sectors, where it used phishing emails appearing as official tax audit notifications or to prompt recipients to download an archive purportedly containing a ‘list of tax violations.’ By leveraging the perceived authority and urgency of communications from tax agencies, the threat actor aimed to persuade victims to download the file and trigger the attack chain. Kaspersky’s research recorded more than 1,600 malicious emails between January and February 2026.

Now, recent findings from Kaspersky GReAT showed SilverFox is using fake Claude apps to infiltrate on their target organisations. Claude is an advanced conversational assistant, large language model (LLM), and chatbot developed by Anthropic. It helps users write, code, analyse long documents, and solve complex problems through natural dialogue.

‘SilverFox is one of the most active threat groups in the whole APAC region. They get into targets through three simple routes: fake websites, phishing emails, and harmful files spread via social messaging apps. They inject malware used for long-term cyberespionage and sensitive data gathering. Our recent analysis showed they are now distributing fake Claude for Windows, macOS, and Linux, leveraging AI use in companies to crack into their targets’ security defences,’ explained Ye Jin.

In terms of attack distribution, the APAC region is the hardest hit by SilverFox’s malicious activities, with a volume far exceeding the sum of all other regions. This indicates that current SilverFox threats are mainly concentrated in Asia, particularly in East and Southeast Asia.

‘Based on our current threat data, Greater China is SilverFox’s main target with over 90% of all its attacks targeting the region. Mainland China alone makes up 71%. Myanmar, Cambodia and Singapore also see lots of attacks. These are the next hotspots we need to watch,’ added Ye Jin.

When it comes to industry, manufacturing makes up more than one third of all attacks, making it the top target industry for SilverFox. IT and services are closely behind as Kaspersky GReAT researchers see a lot of phishing aimed at tech workers. Healthcare and finance also face big risks from the group known to go after high-value targets.

AI attacks: speed, stealth, and accessibility

Ye Jin also talked about JADEPUFFER, the world’s first fully LLM-driven ransomware, which marked a significant turning point in cyber threats. Unlike previous attacks where AI merely augmented human operators, it demonstrated AI acting as both the decision-maker and executor.

As the first agentic ransomware, JADEPUFFER redefined both the speed and sophistication of how cyberattacks happen using AI capabilities. Unlike conventional attacks that still rely on human operators to make decisions or adjust tactics, this attack showed a real-life example of how AI-powered threats can analyse, adapt, and execute attacks in real time.

‘In this particular case, disclosed by our Sysdig, the malicious AI agent completed the entire cycle of diagnosing a failed attempt, correcting its approach, and launching a new attack in just 31 seconds, far outpacing the response capabilities of most human defenders. Beyond speed, JADEPUFFER also demonstrates an unprecedented level of autonomy. It shows that AI agents are now capable of making independent decisions throughout the attack process, effectively replicating the reasoning of an experienced human attacker without direct oversight,’ he explained.

Aside from speed and autonomy, the rise of agentic AI use in cyberattacks is also writing new rules in terms of stealth and accessibility.

Ye Jin detailed the case of ChatGPhish, an indirect prompt injection technique that transforms trusted AI web-summarisation features (like ChatGPT). In these attacks, cybercriminals hide malicious instructions inside webpages and trick users into asking an AI assistant to summarise the content. The AI then unknowingly relays the embedded malicious instructions or links, making it an unintended part of the attack.

Because the malicious content is presented through a trusted AI interface, users are more likely to believe it is safe and click on harmful links or follow dangerous instructions. At the same time, these attacks are difficult for traditional security tools to detect, as they appear to be legitimate interactions between users and AI services rather than conventional cyberattacks.

Malicious AI agents also eliminate the need for technical knowledge to wage a cyberattack. This was proven during the discovery of the AI and cloud-native malware framework VoidLink in January 2026.

Unlike traditional malware that is largely written by human developers, VoidLink was reportedly developed almost entirely with the help of AI, demonstrating how generative AI is transforming the way sophisticated malware can be created and can be democratised.

The need for AI-native defences

You fight fire with fire. And in this case, Kaspersky expert explains defenders can also utilise AI capabilities to protect enterprise and critical networks against AI-powered cyberattacks.

The four ways companies can counter sophisticated AI-driven threats include:

Proactive defense – move beyond passive response and use AI-driven threat hunting to proactively find unknown threats

Zero Trust architecture – implement a Zero Trust architecture, verifying every access request strictly to eliminate internal network trust risks

Systematic Defense – build a comprehensive defense system covering endpoints, networks, applications, and data.

AI vs AI – use large models and dual-use AI technologies to enhance detection and response capabilities, and iterate in real-time with attackers.

‘When attackers can leverage AI to automate decision-making and accelerate every stage of an attack, defenders must respond with the same level of intelligence. Cybersecurity solutions enriched with continuously updated threat intelligence are no longer a competitive advantage, but a critical requirement for staying ahead of rapidly evolving threats,’ added Ye Jin.

Toyota Lanka Ltd., marked another important milestone in its island-wide expansion with the opening of a new body and paint centre in Kurunegala and the groundbreaking of a new general service facility on 13 August 2026.

With over 30 years of presence in Sri Lanka, Toyota Lanka continues to strengthen its footprint across the country by bringing trusted customer care, professional after-sales support, and dependable mobility solutions closer to communities. Kurunegala has remained an important part of this journey since Toyota Lanka established its presence in the heart of Athugalpura in 2008.

The newly opened body and paint centre brings professional body repair and paint services closer to customers in Kurunegala and surrounding areas, supported by Toyota’s trusted standards of quality, durability, reliability, and safety. The upcoming general service facility will further enhance access to professional vehicle maintenance and after-sales support, creating a more comprehensive service experience for customers in the region.

The ceremonies were graced by Toyota Lanka Chairman Masaaki Kawabata and Managing Director/CEO Manohara Atukorala, together with the Mayor and Deputy Mayor of Kurunegala, distinguished guests, customers, banking and insurance partners, and other invited stakeholders. Religious observances and blessings were also held as part of the occasion.

Addressing the gathering, Kawabata highlighted Toyota Chairman Akio Toyoda’s concept of being ‘Best in Town.’ He noted that wherever Toyota establishes its presence, the aim is to become a meaningful part of the community and contribute to its progress. He further stated that Toyota Lanka considers it a privilege to strengthen its relationship with the Kurunegala community and continue serving customers in the region.

Atukorala highlighted that Toyota Lanka’s ongoing network expansion is focused on making professional service and customer care more convenient and accessible across the country. He noted that each new and upgraded facility brings Toyota Lanka closer to the communities it serves and supports the company’s goal of developing 30 facilities across Sri Lanka by the end of 2026.

The occasion also reflected Toyota Lanka’s LIFE philosophy: Loyalty, Integrity, Fairness and Ethics, which guides the company in building trusted and long-term relationships with customers, employees, partners, and communities.

Toyota Lanka’s contribution to Sri Lanka also extends beyond mobility, with the company continuing to support national skills development in collaboration with the Education Ministry, focusing on developing technical knowledge and future-ready skills among young Sri Lankans.

Toyota Lanka’s after-sales strength is reflected in the value it continues to deliver to customers throughout their ownership journey.

With over 3 million services completed, the company continues to provide dependable maintenance and professional care, helping customers keep their vehicles performing at their best. Through Rs. 200 billion in spare parts distribution, Toyota Lanka has also strengthened the availability of Toyota genuine parts across the country, helping customers gain convenient access to trusted parts and support through its wider network.

Toyota Lanka has further completed over 300,000 body and paint repairs, reinforcing its commitment to stand by customers when they need support the most. Whether following an accident or when restoring a vehicle to its proper condition, Toyota Lanka’s body and paint services are focused on delivering trusted workmanship, reassurance, and care.

The company’s commitment to excellence was further recognised in 2025 with the Customer Delight Excellence Award (CDEA) – Gold, Toyota Warranty Kaizen Award, and Toyota Sales and Marketing Award.

The opening of the body and paint centre and the groundbreaking of the general service facility further reinforce Toyota Lanka’s commitment to Kurunegala and form part of its broader effort to strengthen the service network across Sri Lanka, bringing trusted customer care and mobility solutions closer to customers.

Panadura SC and Badureliya CC will meet in the final of the Women’s Major Club 50-over tournament at the Colts grounds commencing 10 am today (1).

Sri Lanka is seeking to turn its increasingly sophisticated digital-payment infrastructure into a wider engine of innovation, investment and economic growth, as Government and industry leaders look to strengthen the country’s position within Asia’s expanding FinTech landscape.

The ambition was outlined at the launch the inaugural Sri Lanka FinTech Festival 2026 by the FinTech Forum Sri Lanka, in collaboration with the Digital Economy Ministry.

The two-day festival, scheduled for 2-3 November at Shangri-La Colombo, will bring together Government, regulators, financial institutions, FinTech companies, investors and international industry leaders to connect Sri Lanka’s growing ecosystem with global opportunities.

The festival is being positioned as more than an industry conference, with organisers seeking to create a national platform connecting the local financial and technology ecosystem with international investors, networks and expertise.

Digital Economy Deputy Minister Eranga Weeraratne placed FinTech development within the Government’s broader digital-economy agenda, highlighting trust and collaboration as critical to expanding the adoption of digital financial services.

As consumers and businesses increasingly move towards digital transactions, he stressed the importance of maintaining confidence across an ecosystem involving Government, regulators, financial institutions, FinTech companies and other stakeholders.

The challenge is not simply to increase digital transactions but to ensure consumers remain confident that the systems through which their money moves are secure, accountable and reliable.

Digital Economy Chief Adviser to the President Dr. Hans Wijayasuriya highlighted the importance of infrastructure in enabling the next generation of digital services.

He placed FinTech within Sri Lanka’s wider digital transformation, where interconnected infrastructure can expand access to financial services while providing businesses and innovators with a foundation to develop new solutions.

The next phase, therefore, extends beyond simply digitising existing processes towards creating an environment in which innovation can take place on top of the infrastructure already established.

Digital Economy Secretary Waruna Sri Dhanapala stressed that creating an enabling environment for FinTech would require Sri Lanka to balance innovation with security, accountability and public confidence.

He highlighted closer engagement between Government, regulators and industry as important in creating conditions that enable emerging FinTech companies to achieve scale, noting that access to capital, markets, talent, regulatory clarity and partnerships would also be critical for companies seeking to compete internationally.

Governance and accountability will assume greater importance as the volume and complexity of digital transactions increase.

FinTech Forum Sri Lanka Chairman Channa de Silva said the country has already established much of the underlying infrastructure, or ‘rails’, required for a modern digital financial system, but must now focus on translating those foundations into greater economic value.

‘The idea of having an annual event is to bring everyone together into a single forum to discuss, debate, identify issues and find solutions, while working with international organisations, speakers and companies,’ de Silva said.

He stressed that international visibility was particularly important if Sri Lanka was to convert its technological capabilities into investment, partnerships and opportunities for local companies.

‘We can do things but if others do not know what we have done, they will not give us opportunities. We should be able to deliver, but also talk about what we have done and expose it to the outside world,’ He added.

The scale of Sri Lanka’s existing digital financial infrastructure was highlighted through industry data presented at the launch.

Real-time gross settlements exceeded Rs. 429 trillion in 2025, while real-time payments amounted to more than Rs. 23 trillion. Digital Government payments exceeded Rs. 3.2 trillion, while over 460,000 merchants were registered on LankaQR.

Sri Lanka also recorded over 438 million point-of-sale transactions, supported by approximately 20.7 million debit cards.

Together with infrastructure including RTGS, CEFTS, CITS, SLIPS, cards and LankaQR, the figures point to a substantial digital-payment foundation already being in place, with attention now shifting towards leveraging it to generate greater economic and social value.

FinTech Forum Sri Lanka, established around three years ago with industry participation, has developed a governance framework comprising a governing board, advisory council and specialist forum committees to provide a structured platform for addressing common challenges and promoting responsible practices.

The broader objective is to create an ecosystem where innovation and consumer confidence can progress together.

Sri Lanka’s FinTech ambitions are also increasingly outward-looking, with the country’s payment ecosystem expanding its links with international payment networks and digital wallets.

These connections are strengthening access to regional markets and creating opportunities extending beyond domestic transactions to tourism, cross-border commerce and international business.

FinTech Forum Sri Lanka’s membership in the Asia FinTech Alliance further provides opportunities for collaboration, knowledge exchange and business relationships with FinTech ecosystems across the region.

The festival is expected to provide a platform not only to bring international companies and expertise into Sri Lanka, but also to showcase the country’s capabilities and create opportunities for local businesses overseas.

A trusted and efficient digital financial ecosystem could also have implications beyond financial services, helping SMEs participate more effectively in the formal economy, expanding financial inclusion and enabling Sri Lankan technology companies to develop solutions for regional and international markets.

This takes on particular significance as Sri Lanka continues its economic recovery, with digital transformation increasingly expected to translate into productivity, investment, entrepreneurship, employment and broader economic participation.

FinTech Forum Sri Lanka Vice Chairman Conrad Dias said the festival has been structured to connect different components of the ecosystem while creating opportunities for collaboration, knowledge-sharing and international engagement.

The program will commence on 2 November with CEOs Night, an invitation-only gathering of senior representatives from banks, FinTech companies, Government, regulators, sponsors and other stakeholders.

The main Sri Lanka FinTech Expo will follow on 3 November featuring an international keynote, expert sessions, panel discussions and an exhibition showcasing FinTech and technology solutions.

Key discussions will focus on the future of banking and FinTech, building scalable businesses, sustainable and inclusive finance, cybersecurity and fraud prevention, as well as digital assets and asset tokenisation.

Global banking and FinTech commentator Chris Skinner has been announced as a keynote speaker, while the festival will conclude with FinTech Night, incorporating networking and the presentation of FinTech Awards.

For Sri Lanka, the opportunity now extends beyond simply moving more money digitally. The next phase will depend on how effectively the country can use the infrastructure already built to strengthen trust, enable innovation, attract investment and connect Sri Lankan companies with international markets.

The Sri Lanka FinTech Festival 2026 is being positioned as a platform to accelerate that transition and give the country’s emerging FinTech ecosystem greater visibility on the global stage.

Sri Lanka’s legal system is currently mired in unprecedented controversy with the introduction of new reforms under the 22nd Amendment to the constitution by the Anura Kumara Government. The 22nd Amendment was aimed principally to improve the efficiency of the legal system and the judiciary in Sri Lanka to deliver better justice for the deeply affected population in the country. Sri Lanka has more than 1.1 million court cases pending and inevitably massive changes to the judicial system are necessary to clear this backlog. The judicial system succumbed to the unnecessary interference by politicians to further their own goals and became almost dysfunctional.

Judicial independence is a principal feature of democracies where the judiciary operates without undue influence from Governments, corporations, or other interest groups. Such a judiciary can guarantee fair, unbiased decisions, upholding justice for all citizens. Judicial independence is often measured on a scale out of 100, and in 2025 Sri Lanka’s score was 61, a poor case of judicial independence. Low judicial independence in Sri Lanka indicates systemic corruption, authoritarian governance, or poor implementation of the rule of law. A higher score reflects greater autonomy and impartiality. The two top performing countries are Australia and Zurich (Switzerland) where the scores were 100. Many countries such as Namibia, Papua New Guinea, Kenya and Romania had higher scores than Sri Lanka, shameful for our country. This sordid history requires in depth analysis before the implications of the 22nd Amendment are disentangled.

Governance and the legal system in Sri Lanka

Sri Lanka’s judicial system and the police became corrupt because rapacious politicians and higher-level bureaucrats (who are often the henchman of the politicians) manipulated the system at will for personal self-aggrandisement and retention of political power over the

last 50 years. In 1982, the then president J.R Jayewardene used a referendum to ask people whether they desire an election at the due time, a most egregious abuse and misuse of power and constitutional authority. Since then, or even before, the system was nibbled away piece by piece until the essential elements of democracy were dismantled. By the 1980s, the long arm of the law was in a permanent sling.

Gruesome history of politics in Sri Lanka

The politicians are masters in accumulating filthy lucre from lucrative multimillion dollar contracts and they escaped with impunity. Corruption at the top was unbelievable. Sri Lanka lost an enormous number of financial resources. Filthy lucre is more than money and reflects greed, corruption, and the prioritisation of money. It symbolises the moral cost of greed and the ethical compromises made in the pursuit of wealth leading to moral decay which aptly describes decadent Sri Lanka, especially under the regimes during the 1970-2024 period.

Incidents of corruption and misbehaviour by Sri Lankan politicians are legion. More than Rs. 8 billion were received from the diaspora for the 2004 Tsunami. This was under the ‘Helping Hambantota’ initiative. Mahinda Rajapakse and his coterie of sycophants used these funds for their own gains. In fact, the then Chief Justice Sarath de Silva admitted publicly that he saved Mahinda Rajapaksa who should have been sent to jail for many of his misdemeanours and he did not. This is a nation where the President and the Chief Justice were both corrupt. Every member of the Rajapakse family has court cases and red notices have been issued against Basil Rajapakse. He is in self-imposed exile in the USA awaiting deportation. Former Justice minister Wijedasa Rajapaksa’s son is now indicted for accepting a bribe from a master drug dealer in the country. Ranil Wickramasinghe is being charged for misuse of public funds to travel for his wife’s graduation in Britain. Six former ministers are now languishing in jail for various crimes. The former health minister of Sri Lanka Keheliya Rambukwella and a few others are charged for many deaths caused due to importation of substandard drugs. Ali Sabry smuggled 3.5 kgs of gold from Dubai. He was fined Rs. 7.5 million and the next day he was in the parliament voting on important legislation

The house of Anoja Weerasinghe, a well-known actress was burnt by the Chandrika Government. The acclaimed songstress of Mother Lanka, the late Dr. Nanda Malini had to escape to India along with Prof Ariyaratne to escape threats to her life from the then Premadasa Government. She sang most evocative songs which had an enormous appeal and inspired millions against the excesses of the Government. Sadly, she passed away recently and the enormous outpourings of grief shown by the Government and the public is testament to the enormous legacy she left for future generations. I jot down below a song enjoyed by millions. The above song is self – explanatory and shows the cruel nature of our society at one time.

‘Yadamin Bandi Vilangula, Mage Putha Ragenayanna

Idikatu Ana Angili Thala, Dethis Vadaya Pamunuvanna

Aluth Lovak Gana Hitima, Danduvam Dena Varadanam

Kumata Erata Adhikaranaya, Nithiya and Vinisuran’

Murders most foul: Sri Lankan style

Many gruesome murders were committed during the last fifty years at the behest of powerful politicians. Black July 1983, was masterminded by Cyril Matthew, who was a Minister of the Government, but no one was ever charged. These misdemeanours were tacitly accepted by the Government of President Jayawardena. However, the authoritarian regimes were challenged in 1971 and 1988, by disgruntled youths. But the result was the murder of thousands of innocent youths by the police and other paramilitary groups. Some of the decapitated bodies were strewn along major road networks for everyone to see in order to inculcate fear in the minds of the people. I saw from my own eyes the fourteen people (do not know who they are) who were killed within the Peradeniya University in 1988 by paramilitary groups. Many of the people never stepped out of their houses after 5 p.m. for fear of white vans and armed militants.

The Batalanda murders where many young activists opposed to Government policies were subjected to torture and some murdered. The murder of Thajudeen, and journalist Ekneligoda, and Lasantha Wickeramatunga include excesses where powerful political families are suspected. The police worked in unison with politicians and also shared the spoils. Once I saw on Sri Lanka TV, Police Minister Tiran Alles, giving instructions to the then IGP Pujitha Jayasundara not to arrest a powerful individual from Ratnapura. The IGP meekly submitted and said on TV, yes sir I will not arrest him. This reminds me of the British comedy, ‘Yes Minister’. Tiran Alles is now in political wilderness and Pujitha Jayasundera is languishing behind bars awaiting the death sentence passed last week over bureaucratic malfeasance related to the Easter attack in 2019. The Easter attack is the most gruesome crime committed in Sri Lanka and some political leaders are suspected.

Aragalaya 2022

The year 2022, is a memorable year for Sri Lanka where youths initiated a peaceful protest against the Government. The Sri Lankan population now has reached political puberty and cannot be (daily ft) easily swayed by false political propaganda. They are educated and politically savvy and are motivated not by selfless behaviour but the greater good of society. There is strong unity among them and this was the main ingredient they displayed in the revolution of 2024. This strong politically savvy young generation was at the forefront of the birth of a new nation.

The main objective of the protesters was to topple the corrupt Government of Gotabaya Rajapakse. This unity of purpose has helped them to fight a revolution in 2022 and expel a corrupt Government. This is unprecedented in Sri Lanka and no longer will they allow these capricious politicians to trample their independence by the hob nailed boots of the tri-forces and the Government. There is nothing to learn from their previous political masters who simply plundered the wealth of the nation, destroying natural resources such as forests and sharing the spoils from lucrative multi-million-dollar contracts.

Aftermath of ‘Aragalaya’: Emergence of Real Democracy and People’s Government, 2024

Anura Kumara (AKD) Dissanayake was at helm of this struggle, who fought for nearly 24 years within the Parliament is now destined to be the new President of the country. He had the necessary charisma and leadership in the rebuilding of an impoverished nation and on 21 September 2024, he won the presidency with a significant majority. This was unexpected and the ruling political parties were flabbergasted while the ordinary people celebrated the victory. The arduous task of Governing the corrupt nation has begun with an iron fist. The AKD Government had only a short history of close to two years. The Government began to clear the Augean stables systematically arresting and charging many corrupt individuals without any fear of favour. Of the many changes to the Governmental procedure, the most recent change is the enactment of the 22nd Amendment to the constitutions which has generated vicious debate between the Government and the opposition and BASL. The main elements of the proposal are listed below.

The 22nd Amendment to the Constitution: A debate misconceived

There are several elements in the 22nd Amendment. These different elements are all equally important and I will argue later why. These different elements of the 22nd Amendment proposed are briefly listed below.

n Extend the retirement age of Supreme Court judges from 65 to 67 years and Court of Appeal judges from 63 to 65 years. The Chief Justice would retire upon reaching 67. raises the High Court judges’ *Retirement age from 61 to 63, with other judges and magistrates set at 62 years .

n Increase the maximum number of Court of Appeal judges from 19 to 24 and

n Restructure Constitutional Council which includes the Prime Minister, Speaker, Leader of the Opposition, and members appointed by the President based on nominations from Parliament, professional bodies, and universities. The Council will recommend appointments to the Election Commission, Public Service Commission, National Police Commission, Audit Service Commission, Human Rights Commission, and others.

It also prohibits individuals with dual citizenship from contesting elections and allows the President to dissolve Parliament after two and a half years of its election.

They propose to expand the court system to rural areas and increase the number of judges and expansion of the prison facilities for prisoners. These are all salutary features in the proposal.

The Amendment is expected to strengthen judicial independence and reduce the case backlogs. Maintain checks and balance by reinstating independent commissions to ensure checks and balances and enhance parliamentary oversight and accountability of key state institutions

They focus on allowing some prisoners to spend part of the sentence in the Community Based Correctional Facility. This measure would further reduce overcrowding in prisons.

Why I challenge the Opposition and the BASL

(a) Lack of credibility of the Opposition

Despite many salutary changes contained in the 22nd Amendment to ensure an independent judiciary, the opposition and BASL were intensely opposed only to the extension of the tenure of judges. They were the most vociferous critics of this issue. Why have they teased out one element from the set of proposals for debate is not clear. Their view is that the extension of the retirement age of judges is a threat to the independence of the Judiciary. We cannot accept this view because the opposition and the BASL lost their credibility long ago. Many opposition members face corruption allegations and some have already been charged in courts for a variety of sins including murder. Some of them have visited the courts more than once and some are on bail. This group of parliamentarians disenfranchised the then Chief Justice Dr Shiranee Bandaranayake. How can this group safeguard the independence and soul of the Judiciary?

The BASL has lost its credibility too. It is extremely political and the President of the BASL Rajiv Amarasuriya, is a close ally of several top politicians such as Ranil Wickremasinghe and Prof G.L. Peiris. Already we have seen some objections to the President of BASL appearing and some have asked for his resignation. They may grow louder as reality dawns upon them. The coalition is facing headwinds and their hysterical dislike towards the extension of tenure may flounder on the rocks of acrimony. We saw the acerbic innuendo of MP Rohini Kaviratne attacking the Chief Justice Surasena in the Parliament. Clearly, there must be new legislation to define the red lines which cannot be crossed by these cowards of the castle. The sad irony however, is that those who are affected by the reforms namely the Sri Lankan public who face many court cases have shown no visible resistance to these reforms

(b)The lack of rigour in analysis in the debate

The BASL and the opposition have failed to see the Amendment with any analytical rigour. Erudite scholars and the so-called legal luminaries such as Prof. G.L. Peries must be able to analyse these issues critically to provide good insights to the Government but he miserably failed. In his octogenarian years, dithering in dotage, he has lost his sharp ability to provide robust arguments impartially to support the amendment that would shape our future. I saw that in a recent interview, Prof. Peries argued that the full bench must hear the cases against the 22nd Amendment. Why?, Obviously they are all senior judges and he is confident that they will deliver impartial judgment. Here he values seniority but at the same time he contradicts himself by arguing against the extension of the tenure of judges. I also saw him asking for a referendum for the implementation of the 22nd Amendment. The Government will win this referendum with a handsome majority. The opposition will fall from the frying pan into the fire. All these people have become poignant day dreaming charlatans.

(c) Multidisciplinary nature of modern day development issues

In the modern world, development issues are highly complex and multidisciplinary approaches are needed to evaluate economic policies to circumnavigate these complexities. But the analytical minds of the opposition and the BASL are weak, and they view complex multidimensional issues through a unidimensional lens. The dimensions include law, society, community issues, economics, sociology, ethics and morality. The 22nd Amendment contains issues related to all these fields. President Anura Kumara Dissanayake has a razor-sharp mind and he has understood the need for a multidisciplinary approach to the amendment. The opposition has sacrificed rigour in analysis before the altar of political expediency.

(d) Complementary nature of the different elements of the 22nd Amendment

In economic jargon, we say that complementary goods have a close relationship to each other. That is to say that one good is reliant on the other to add value. Now I like to use this argument for the different elements proposed in the 22nd Amendment. All of the different elements add value to each other. One element in isolation will not yield optimal results. Take for example the extension of the tenure of a judge. This may have good outcomes but if it is done along with other elements such as increasing the number of prisons, introducing community policing etc. the overall result will be better. Thus, teasing out only the tenure issue and arguing against it without understanding the complementary nature of the other elements is inadequate. It may result in erroneous conclusions. The opposition and the RBSL need to understand the holistic approach to complex legal issues.

(e ) Technology, developmental priorities and experience

Development of a nation comes in waves mostly related to the development of innovative technologies. The industrial revolution was based on the development of the steam engine. The communications technologies are at the heart of the communications revolution that led to rapid economic growth.

New technology such as Artificial Intelligence (AI) can help Sri Lanka along with the new legal reforms proposed (22nd Amendment to the Constitution) to cross barriers in many fields and enter into a new era. AI can improve efficiency, access to justice and manage ever increasing caseloads. This adoption process is most effectively done with senior judges with significant skills and experience. The opposition’s arguments are empty because they are not developmental. President Anura Kumara Dissanayake is pursuing digitalisation of the legal system. Extending the tenure of experienced judicial leaders can speed up the adoption of AI and deliver quick justice to the ordinary people. This creates efficiencies and also minimises economic costs because new judges cannot be appointed in a hurry.

AI is already transforming justice systems across Asia and the Pacific region. Singapore uses pioneering smart courts now but Sri Lanka is far behind yet. Stronger governance, safeguards and regional cooperation, and public trust are essential to ensure that AI advances access to justice, human rights and public trust. The role of the senior judge is indispensable in this revolution.

I learnt that the current Chief Justice Surasena has displayed keen leadership and interest in digitalisation of the court system, Skills and experience of senior judges are very relevant here. The effectiveness of anti-corruption laws depends on strong enforcement mechanisms, judicial independence and institutional integrity. The opposition cannot deny Sri Lanka these future opportunities, when the country is crying for significant changes to the judiciary. Sri Lanka is a signatory to the sustainable development goals (SDGs) of the United Nations. Goal 16 (SDG 16) aims at ‘promoting peaceful and inclusive societies for sustainable development (SD), providing accessible justice for all and building effective accountable and inclusive institutions at all levels. This is a tall order and without new technology, senior judges and broader approach to legal amendments, Sri Lanka is doomed.

Conclusion

These legal misdemeanours of previous regimes are indelibly etched in the minds of the Sri Lankan public. The public can no longer be duped by gullible politicians. The ulterior motive of the opposition and the BASL is to precipitate a political crisis in the country and fish in troubled waters.

Unfortunately, the opposition cannot convince the public and the Government to create a political crisis. The Sri Lankan population now has reached political puberty and cannot be easily swayed by false political propaganda. Yet our politicians vociferously espouse their capabilities to resurrect the country’s health. But our young generation is politically mature and has unique experiences in fighting a revolution in 2022 and managing to expel a corrupt Government, which was unprecedented in Sri Lanka. The opposition is preaching their sermons to an empty house.

The Opposition must learn from ‘Aragalaya’. In the meeting of the President with the BASL, the arguments of the legal fraternity were smashed into smithereens. The desperation of the opposition is clear. We saw Mahinda, Gotabaya and Namal visiting the Seenigama Devale last week to pray seeking divine intercedence to save them from pending court cases. Those who oppose these reforms to the judicial system are struggling in the grip of quicksand; the more they argue, the more they sink.

Colombo Chief Magistrate Asanga S. Bodaragama has directed the Financial Crimes Investigation Division (FCID) to respond to an application by the first suspect in the case involving large advance payments to overseas exporters, seeking an investigation into whether goods were shipped to Sri Lanka against the funds remitted through local banks.

The case is in relation to an FCID investigation into allegations that 89 Sri Lankan companies remitted large sums to overseas exporters as advance payments for imports that investigators allege were never received in the country.

Colombo Chief Magistrate Asanga S. Bodaragama has directed the police Financial Crimes Investigations Division (FCID) to respond to Court on the written application under 124 CCPA made to the Chief Magistrate on behalf of first suspect Jiffry Mohamed of A Y Investments Impex Ltd., that FCID be directed to investigate directly or through the banks and ascertain from the overseas exporters by fax or email the relevant exports made by them to Sri Lanka in respect of the advance payments received by them from the banks in Sri Lanka.

The suspect has also submitted to Court through his Counsel that he believes that the goods were in fact exported to Sri Lanka by the overseas exporters in China and India to Sri Lanka and cleared by the respective importers from time to time and that it is vital for the police to investigate what happened to the monies that were sent by the several banks overseas.

Suspect’s Counsel M. M. Zuhair, PC told Court that no Sri Lankan importer would send huge amounts to overseas exporters without receiving the goods for which he had made advance payments through banks!

The suspect and his 34 associate companies, he said, are not the importers. That A Y Investments performed a limited operational service for a nominal commission. They receive funds in rupees from brokers for transferring the said sums in rupees to the banks and that the banks after exercising due diligence convert the rupees into foreign currencies and remit the foreign currencies to the overseas exporters.

FCID has not reported to Court on the rest of the 89 companies other than suspect’s 34 companies, he submitted.

Counsel submitted that advance payments are lawful under the ‘Special Import license and Payment Regulations No 1 of 2011 issued by then President of Sri Lanka under the Import and Export (Control) Act and Article 44 of the Constitution issued 15 years ago. Regulations were amended by the incumbent President in June 2026 and that the 2011 regulations as amended are in force.

He said Police have not referred to these regulations, which permit advance payment for imports, in their several reports to Court.

As the suspect is in remand, he is unable to himself assist the Police and that he had while in custody provided assistance whatever possible to the investigators but he could do better if he is enlarged on bail, he has said in the written application for bail. Counsel pleaded that the suspect has no previous convictions or Police involvement and he be released on bail with whatever strict conditions Court may impose.

In the written application, suspect has submitted that he is entitled to a ‘just, fair and complete investigation’ by the police, in the case where Police allege that huge amounts of monies had been sent to overseas exporters by 89 Sri Lankan companies for imports but that no imports, Police allege, had been received.

Counsel appearing for the four bank employees arrested and in remand said that they were junior employees and had not committed any offence and sought bail. Court made order remanding the suspects until 3 September.