Category: Daily Financial Times

Introduction

The proposed 2027 Budget presents Sri Lanka with a historic opportunity to move beyond macroeconomic stabilisation and begin genuine economic transformation. While achieving a (i) primary surplus, (ii) reducing inflation, and (iii) restoring fiscal discipline have laid the essential foundations for recovery, these achievements alone cannot deliver long-term prosperity or generate the resources needed to repay external debt.

This article argues that the 2027 Budget should become Sri Lanka’s first Economic Transformation Budget, organised around three national missions: (i) raising productivity, (ii) mobilising investment, and (iii) improving living standards. Rather than being judged by revenue collection or expenditure alone, the Budget should be assessed by its ability to increase productivity, exports, investment, household incomes, and inclusive growth. Such a strategic shift would help Sri Lanka build a stronger, more resilient, and more prosperous economy capable of sustaining growth above 7% while honouring its future debt obligations.

The end of one journey and the beginning of another

Between 2022 and 2026, Sri Lanka traversed an exceptionally difficult road. Following an unprecedented economic crisis characterised by acute foreign exchange shortages, hyperinflation, and severe debt distress, the nation engaged in an intensive stabilisation program supported by the International Monetary Fund (IMF). Through painful fiscal adjustments, aggressive revenue measures, monetary tightening, and complex sovereign debt restructuring, the macroeconomy has undeniably stabilised. Inflation has been brought down to single digits, official foreign reserves have been replenished to workable operational levels, and the central Government has secured a primary budget surplus. These are remarkable institutional milestones achieved through immense sacrifices borne by the public and domestic businesses.

However, a fundamental truth must now be acknowledged by policymakers: these achievements represent the end of economic stabilisation-not the beginning of national prosperity. Stabilisation stops a ship from taking on water, but it does not steer it toward a new destination. While fiscal discipline prevents insolvency, it does not inherently create new industries, generate high-paying jobs, or expand export earnings. Sri Lanka’s stabilisation phase successfully prevented total state breakdown, but relying indefinitely on stabilisation tools without a growth strategy will lead directly to economic stagnation. The nation stands at a pivot point where it must transition from survival mode to dynamic economic expansion.

Why stabilisation alone cannot deliver prosperity

The standard macroeconomic transmission mechanism often assumed by conventional policy models suggests that securing a primary surplus naturally leads to fiscal stability, which builds market confidence and subsequently drives private sector growth. While fiscal discipline builds essential market confidence, the lower half of the growth engine remains missing. Market confidence alone (i) does not automatically build modern logistics corridors, (ii) automate manufacturing processes, (iii) upgrade workforce skills, or (iv) establish technology transfer hubs.

Where do productivity, exports, investment, and innovation actually come from? They do not automatically spring forth simply because inflation is low. They require intentional, structural, and targeted state policies that lower the cost of doing business, eliminate regulatory bottlenecks, and build public infrastructure that crowds in private capital.

The success of Sri Lanka’s 2027 Budget should no longer be measured by how much tax it collects or how much it spends. Those are important, but they are only the means. The true measure of success is whether the Budget (i) raises productivity, (ii) mobilises investment, (iii) expands exports, (iv) creates high-value employment, (v) increases real household incomes, and (vi) lays the foundation for sustained 7% inclusive economic growth.

If Budget 2027 remains a standard accounting document focused solely on marginal tax adjustments and departmental spending allocations, Sri Lanka risks entering a prolonged low-growth trap. To service restructured external debt post-2027 while raising real living standards, the national economy must grow at a real rate of at least 7% annually. That target cannot be reached by fiscal austerity; it demands structural transformation. To achieve and sustain a 7% real growth target, Sri Lanka must move beyond fiscal austerity and execute deep structural transformations across six non-negotiable sectors:

Energy Sector: Transitioning from expensive imported fossil fuels to utility-scale renewables (solar, wind, biomass) and unbundling the grid to lower industrial power tariffs for export competitiveness.

Agriculture and Agribusiness: Moving from passive input subsidies to capital co-investments in agritech (drip irrigation, cold-chain logistics, and high-value export crops) to lift rural productivity.

Industrial Sector: Accelerating the adoption of AI, robotics, and advanced manufacturing to move industrial exports (apparel, tea) up the value chain into high-tech goods.

Institutional and Digital Governance: Implementing “Digital Structuralism” across land registries, customs, and taxation, while creating a true single-window authority for fast-tracked FDI approvals.

Education and Human Capital: Realigning tertiary and vocational training with market demand (STEM and digital skills) and reforming labor laws to boost female labor force participation.

Trade and Logistics: Upgrading deep-water ports and hinterland transport corridors while rationalising tariffs to integrate Sri Lanka into global supply chains as South Asia’s premier maritime hub.

Reimagining the Budget framework: Mission-oriented governance

Traditionally, public budgets in Sri Lanka have been drafted around administrative ministries, prompting a zero-sum game where each ministry defends its historical allocation. This approach creates fragmented siloes, duplicating efforts while ignoring overarching national objectives.

To break this pattern, the 2027 Budget should introduce a major conceptual shift by organising the national budget around three core Economic Missions rather than traditional ministerial line-items. Instead of evaluating ministries on how much money they spend, the Treasury should evaluate how every rupee allocated across line ministries actively drives one or more of three key missions: (i) Raising National Productivity, (ii) Mobilising Strategic Investment, and (iii) Improving Household Living Standards. Under this mission-oriented model, a project in the Ministry of Education or Ministry of Agriculture is no longer viewed as a passive cost centre; it is evaluated as a direct capital input into raising national productivity or improving household incomes. This is indeed crystal clear.

Mission one – Raise national productivity

Productivity is the ultimate engine of long-term real wage growth and international competitiveness. An economy cannot consume what it does not produce, nor can it export competitively if its unit labor costs are inflated by low output per worker. To drive national productivity across all sectors, the 2027 Budget must focus on five strategic pillars:

Digital structuralism and public sector efficiency: A primary bottleneck to private sector productivity in Sri Lanka is state bureaucracy. The 2027 Budget must finance a comprehensive “Digital Structuralism” initiative across Government agencies. Digitising land registries, customs clearance, tax administration, and business licensing will drastically reduce transaction costs, eliminate administrative corruption, and compress approval timelines from months to days. A modern, digital state infrastructure acts as a force multiplier for private sector execution.

Modernising agriculture and agritech adoption: Over a quarter of Sri Lanka’s workforce remains in agriculture, yet the sector contributes under 10% to gross domestic product (GDP). This low output perpetuates rural poverty. Budget 2027 should redirect traditional, wasteful input subsidies toward capital co-investments in high-efficiency technologies: drip irrigation, precision farming, climate-resilient seed stocks, cold-chain logistics, and processing hubs. Transitioning from low-yield subsistence farming to commercial agribusiness will boost rural output, lower urban food inflation, and free up labor for high-value industries.

Industrial automation, AI, and higher-value exports: Sri Lanka’s industrial base, particularly apparel and tea, faces growing competition from lower-cost Asian and African producers. To survive and expand, Sri Lankan industries must move up the value chain. Budget 2027 should introduce targeted fiscal incentives-such as accelerated depreciation allowances and tax credits for research and development (RandD)-for firms investing in industrial automation, robotics, artificial intelligence (AI), and green manufacturing processes.

Logistics and trade infrastructure: Sri Lanka’s strategic geographic position in the Indian Ocean remains underutilised. Raising national productivity requires integrating domestic supply chains with global shipping networks. Budget allocations should prioritise port efficiency, deep-water terminal expansions, hinterland logistics corridors, and seamless customs interconnectivity to establish Sri Lanka as South Asia’s premier maritime and supply-chain hub.

Workforce upskilling and technical education: A severe skills mismatch hampers growth in technology, engineering, advanced manufacturing, and specialised services. Budget 2027 must realign tertiary and vocational education spending with market demand. Establishing specialised technical training institutes, introducing industry-led apprenticeships, and supporting continuous adult upskilling will build a workforce capable of supporting a modern, high-productivity knowledge economy.

By integrating a digital state infrastructure, agricultural technology, industrial automation, advanced logistics, and a skilled workforce into a cohesive productivity engine, Sri Lanka can achieve higher output per hour worked, directly driving real wage expansion and global competitiveness. Indeed real wage expansion is the key for increased household savings. Today, decreasing real wages is a burning issue.

Mission two – Mobilise investment

Macroeconomic stability provides the foundation for investment, but targeted policy mechanisms are required to convert that stability into active physical and intellectual capital. Sri Lanka’s gross domestic capital formation must rise from its post-crisis 24.6% of GDP (2023) to over 30% of GDP to support 7% annual real growth, bridging the gap between macroeconomic stability and sustained expansion through three core pillars: foreign direct investment, SME scale-up, and capital market deepening.

Overhauling the investment climate: Foreign direct investment (FDI) into Sri Lanka has historically lagged behind regional peers due to policy inconsistency, complex land acquisition rules, and overlapping bureaucratic authorities. Budget 2027 should fund a single-window investment clearance authority backed by statutory deadlines. Investors should no longer be forced to navigate dozens of separate Government agencies to launch a business. Indeed, the Colombo Port City Project like environment is the most desired.

SME capital access and scale-up facilities: Small and Medium Enterprises (SMEs) represent the backbone of the domestic economy, generating the majority of non-farm employment. However, high interest rates and collateral requirements have left many capital-starved post-crisis. Budget 2027 should establish a national credit guarantee scheme and partial equity co-investment funds in partnership with commercial banks to finance high-growth, export-oriented SMEs.

Deepening capital markets and non-bank financial intermediation: Over-reliance on commercial bank lending limits long-term, high-risk capital formation. The 2027 Budget should introduce legislative and regulatory measures to deepen domestic capital markets. Encouraging corporate bond issuances, venture capital entry, real estate investment trusts (REITs), and green bond frameworks will allow domestic institutional investors (such as pension funds) to channel capital safely into long-term infrastructure and productive enterprises.

Targeted export-oriented FDI incentives: Rather than granting broad, untargeted tax holidays, Budget 2027 must align fiscal incentives with export performance, local supply-chain integration, and technology transfer. Foreign investors bringing advanced technical capabilities in renewable energy equipment, electronics assembly, pharmaceuticals, or IT services should receive targeted performance-based credits tied to measurable local value addition.

Renewable energy transition as an economic driver: Sri Lanka’s reliance on imported fossil fuels drains foreign exchange reserves and inflates electricity tariffs for domestic industry. Accelerating the transition to renewable energy-solar, wind, biomass, and green hydrogen-is both an environmental imperative and a macro-critical growth strategy. Budget 2027 should incentivise private investments in utility-scale renewable generation and grid modernisation, turning green energy into a competitive advantage for export manufacturers.

Mission three – Improve household living standards

Economic growth is unsustainable if its benefits accrue solely to a small segment of the population. The ultimate goal of economic policy is not to produce abstract statistical metrics, but to improve human well-being. Mission Three ensures that macroeconomic transformation delivers tangible, inclusive benefits to households across the country:

High-value job creation over low-wage employment: Economic development requires moving workers from low-productivity informal labor to high-productivity formal employment. The 2027 Budget must prioritise supporting industries that generate sustainable, skilled jobs-such as software engineering, specialised manufacturing, value-added agriculture, and technical services-raising average real wages naturally through market demand.

Boosting female labor force participation: Female labor force participation in Sri Lanka remains below 35%, representing a major underutilisation of human capital. Budget 2027 should introduce direct fiscal support for early childhood care centers, eldercare facilities, safe public transport infrastructure, and flexible working arrangements. Enabling more women to enter and remain in the formal workforce will raise household incomes while expanding national output.

Youth employment and entrepreneurship: To halt the brain drain of educated young professionals leaving the country, the national budget must offer viable domestic opportunities. Budget 2027 should fund (i) youth startup incubators, (ii) technical innovation grants, and (iii) seed funding programs linked to universities and technical colleges, encouraging young talent to build scalable businesses at home.

Balanced regional development: Economic activity in Sri Lanka has historically concentrated heavily in the Western Province. To promote balanced, inclusive growth, Budget 2027 should allocate infrastructure funding toward regional economic corridors, primary agricultural processing zones, and secondary port cities like Trincomalee and Hambantota, spreading economic opportunity across all provinces.

Strengthening social protection and protecting real incomes: While growth is the best long-term cure for poverty, targeted social safety nets remain vital for protecting vulnerable communities from external shocks. The 2027 Budget must refine and strengthen targeted social transfer schemes (such as Aswesuma) using verifiable, transparent digital databases. Ensuring assistance reaches those who truly need it protects household stability while maintaining overall fiscal discipline.

A new framework for measuring Budget success: The national transformation scorecard

What gets measured gets managed. If the public and parliament evaluate a budget solely by its headline fiscal deficit or total revenue collected, ministers will naturally focus on short-term tax extraction rather than structural economic expansion. To change how policymakers think about public finances, the 2027 Budget should introduce a National Transformation Scorecard that evaluates fiscal success using dual dimensions: traditional fiscal stability metrics paired with long-term structural transformation indicators.

Rather than relying solely on traditional budget indicators such (i) as revenue collected as a percentage of GDP, (ii) headline fiscal deficit,(iii) primary budget surplus, (iv) total public expenditure, (v) debt-to-GDP ratio, (vi) inflation rate(vii) gross sovereign borrowing, and (viii) tax compliance rates, the new framework evaluates public policy against dynamic transformation indicators.

Under this modernised approach, success is measured by the (i) growth rate of labor productivity, (ii) private fixed capital investment as a percentage of GDP, (iii) export growth and diversification, (iv) rankings on the Global Innovation Index, (v) the annual creation of high-value formal jobs, (vi) real median household income growth, (vii) the national household savings rate, and (viii) the multidimensional poverty reduction rate. Evaluating the Treasury against this broader set of indicators forces state institutions to prioritise economic expansion alongside fiscal management.

Reporting progress

It is essential that all Ministries should send well-structured quarterly progressed reports to the Office of the President. Those reports should not focus merely on budget utilisation or expenditure. Instead, they should measure each Ministry’s contribution to the three National Economic Transformation Missions:

Raising Productivity

Mobilising Investment

Improving Living Standards

Each report should include (i) clearly defined Key Performance Indicators (KPIs), (ii) measurable targets, (iii) achievements, (iv) implementation challenges, (v) and corrective actions. This whole-of-Government performance framework would enable the President and Cabinet to assess, on a quarterly basis, whether Sri Lanka is progressing towards its strategic national objectives of (i) higher productivity, (ii) stronger private investment, (iii) increased exports, (iv) quality employment, (v) rising real household incomes, and (vi) sustained inclusive economic growth.

In this way, the three National Missions would become the anchor of every National Budget, guiding not only the allocation of public resources but also the measurement of national performance. Budget success should no longer be judged primarily by revenue collected, expenditure incurred, or the size of the primary surplus. Instead, it should be evaluated by its contribution to transforming Sri Lanka into a productive, competitive, resilient, and prosperous economy capable of sustaining growth above 7 % while meeting its long-term debt obligations.

Such a performance-based budgeting system would strengthen accountability, improve policy coordination across ministries, and ensure that every public institution works towards a common national vision of economic transformation.

In short, a National Budget should not merely account for how public money is spent; it should demonstrate how public policy is transforming the nation’s future.

Conclusion – The Budget that can shape Sri Lanka›s future

Sri Lanka has travelled a difficult road from economic collapse to macroeconomic stability. Yet stability is not prosperity, and recovery is not transformation. The nation now stands at a historic crossroads.

Budget 2027 can either become another routine annual exercise in balancing revenues and expenditures, or it can become the blueprint for building a productive, investment-driven, and inclusive economy. History will not judge this Budget by the taxes it collects or the money it spends. It will judge it by whether it creates the conditions for stronger productivity, greater investment, rising exports, better jobs, and higher living standards.

As Joel A. Barker famously observed: “Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.”

If Budget 2027 embraces those three national missions-raising productivity, mobilising investment, and improving living standards-it will become far more than a fiscal document. It will become the structural foundation upon which Sri Lanka builds a stronger, more resilient, and more prosperous nation capable of sustaining growth above 7% while honouring its obligations to future generations .In other words, a National Budget should not merely account for how public money is spent; it should demonstrate how public policy is transforming the nation’s future.

Overseas Realty (Ceylon) PLC has recorded a Group Revenue of Rs. 6,775 million and a Group Profit Before Tax (PBT) of Rs. 4,767 million for 6 months ending 30 June 2026.

The Fair Value Gain recorded from Investment Properties was Rs. 1,091 million compared to a Fair Value Gain of Rs. 2,331 million for the same period of last year.

The Company’s Revenue of Rs. 921 million at the World Trade Center, Colombo, was 32% higher than the corresponding period, due mainly to higher occupancy and rental rates.

Revenue of Rs. 771 million was recorded from apartment sales at Havelock City which was lower than the corresponding period in 2025 due to limited number of units available for sale.

Mireka Tower and Havelock City Mall recorded a revenue of Rs. 2,155 million and Rs. 1,198 million respectively, representing increases of 95% and 22% over the corresponding period in 2025. This performance was supported by higher occupancy levels and improved rental rates.

Mireka Seascape, located on the southern coast of Sri Lanka, comprising 168 luxury apartments and villas, was launched to the market in June 2025. The project has achieved strong market acceptance, reflecting its prime location, contemporary design, and lifestyle appeal. Pilling work commenced in the 2nd Quarter of 2026.

A spokesperson from the Company said: “With high occupancy levels across all investment properties, strong recurring revenue streams, and robust asset base, the Company remains financially resilient. We are well positioned to accelerate the exploration of new development opportunities within the real estate sector to foster sustainable growth and deliver long term shareholder value.”

The Group Net Asset Value per Share as of 30 June 2026 stood at Rs. 54.67 and the Earnings per Share for the period was Rs. 3.60.

Digital Economy Deputy Minister Eng. Eranga Weeraratne said the Government has taken a significant step forward in strengthening the professional foundations of Sri Lanka’s information technology (IT) sector with the Cabinet approving the establishment of the Chartered Institute of Computing Sri Lanka (CICSL).

The Computer Society of Sri Lanka (CSSL), established in 1976, has for five decades stood as the foremost and sole organisation representing professionals in the country’s computing sector.

Recognising its enduring role and the aspirations of the professionals it represents, the Cabinet of Ministers, acting on a proposal submitted by President Anura Kumara Dissanayake in his capacity as Digital Economy Minister, granted policy approval for the establishment of the CICSL, and instructed the Legal Draftsman to prepare the necessary draft legislation to give effect to this decision.

Eng. Weeraratne said that this is a strong initiative by the Government to elevate the CSSL to chartered status, placing it on equal standing with other professional bodies that already hold such recognition.

He noted that the objective is to enable the Institute to contribute more effectively and authoritatively to the national digital transformation program by promoting professional excellence, advancing research and innovation, driving technological progress, and strengthening capacity development within the field of IT.

He further stated that as Sri Lanka continues to build its digital economy under the DIGIECON 2030 vision, a strong, chartered professional institute for the computing fraternity is not merely symbolic but foundational, ensuring that the professionals driving the country’s digital transformation are recognised, empowered, and equipped to meet the demands of a rapidly evolving global technology landscape.

The Deputy Minister said the Government remained committed to building the institutional frameworks necessary to sustain a resilient, innovative, and globally competitive digital economy for Sri Lanka.

The latest news is that officers from the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and the Criminal Investigation Department (CID) have left for Australia to investigate and trace suspects in the case relating to an alleged bribe of $2 million from a European Airline during the acquisition process of a 10-aircraft fleet for SriLankan Airlines in 2013.

They hope to record a statement from one of the suspects in the case who is said to be residing in Australia.

Prior to this, a team from the CID travelled to the UK to investigate whether the University of Wolverhampton issued an official invitation to former President Ranil Wickremesinghe, or if his 2023 trip to his wife’s graduation was a personal visit in the guise of being an official one.

A team led by CID Director Shani Abeysekara also travelled to France recently to record a statement from a man named Asad Maulana, who the CID thinks will provide the smoking gun to help them prove a conspiracy behind the Easter Sunday terrorist attacks. Moulana was entertained at the Sri Lanka Embassy in Paris by the CID officials who sat down with him for a few hours to record a statement. It didn’t cross their minds that Moulana is wanted in Sri Lanka in connection with two cases pending against him and is on the run seeking asylum in Switzerland.

Now the latest jaunt is to Australia where the CID/CIABOC officials think they can collect enough evidence relating to the SriLankan Airlines case.

The law enforcement authorities in Sri Lanka work with Interpol and other foreign law enforcement agencies including those in Australia and the UK and there is no need for local officials to travel at State cost to these countries, bag and baggage to record statements which, if necessary, can be done by video links. There are also serious questions if the statements they record will be admissible as evidence in court during a trial as they will be highly contested by the defence. All the while their overseas travel and accommodation bill will be incurred by State coffers.

The costs being incurred for such travel are being kept under wraps. Attempts to obtain how much was spent on the CID officers to travel to the UK for the Ranil Wickremesinghe case could not be obtained after the Police Department ignored a Right to Information (RTI) request filed by a journalist. An appeal is pending.

Certainly, there are many cases that warrant investigation and prosecution, especially where corruption and misappropriation of public funds are concerned but given that the CID and the CIABOC are turning a blind eye to corruption and wrongdoing within those in this Government makes it obvious that they are applying the law selectively to serve their agendas or those of their political masters.

Take the case of the $2.5 million (approx. Rs. 800 million) which went missing from the Treasury. Hackers had diverted a foreign bilateral debt repayment intended for Australia, transferring the funds into fraudulent US shell company accounts. Now that the CID and the CIAOBC officials are in Australia they should investigate this case as well and discuss with their Australian counterparts how the Sri Lanka Finance Ministry officials were so easily hoodwinked. While the CID is in a foreign travel mode, maybe a team should head to Japan too to see if they can trace the missing PhD of the former NPP speaker MP Asoka Ranwala.

There was a time whenever a high-profile crime took place in Sri Lanka, the governments in power would get down a team from Scotland Yard to assist in the investigation.

Since the NPP came to power, the trend is for CID officials to travel overseas, on business we are told.

While the CID and other Government intuitions should investigate criminal activity, travelling overseas to obtain evidence will not be of much help judging by some of the previous jaunts. What they should do is seek the assistance of the authorities in the countries concerned and use the connections with Interpol to assist them.

The Sri Lanka Chamber of Garment Exporters (SLCGE), established in 1994, has invited small and medium-sized apparel manufacturers from across Sri Lanka to join the Chamber and become part of a unified platform committed to strengthening the country’s apparel

sector.

Having represented and supported Sri Lanka’s apparel industry for more than three decades, SLCGE said its renewed membership drive aims to bring together established exporters and aspiring exporters under one collective industry voice at a time when global apparel markets are becoming increasingly competitive.

The Chamber noted that greater collaboration among SME apparel manufacturers is essential to building a stronger, more resilient and export-oriented industry. By working together, manufacturers can share knowledge, address common challenges and collectively explore new opportunities in international markets.

Through SLCGE membership, apparel manufacturers will have the opportunity to collaborate with fellow industry participants, explore new and untapped international business opportunities, and support collective initiatives aimed at improving direct market access.

Members will also be able to gain industry knowledge, market intelligence and exposure to best practices through workshops, seminars, networking events and capacity-building programmes conducted or facilitated by the Chamber.

Sri Lanka Chamber of Garment Exporters President Nishantha Bakmeege said: ‘SME apparel manufacturers are an important part of Sri Lanka’s export economy, but many continue to face challenges in accessing markets, finance, technology and timely policy information. By joining SLCGE, manufacturers can become part of a stronger collective platform that enables them to share knowledge, build industry connections and pursue new business opportunities.’

‘Our objective is to bring established and aspiring exporters together under one voice and support them in becoming more competitive, resilient and globally connected,’ he added.

The Chamber will also provide guidance on government policies, regulations and export procedures, while facilitating engagement with financial institutions to help manufacturers better understand available financing solutions and business growth opportunities.

At a time when Sri Lanka is seeking to strengthen export-led economic growth, the SME apparel sector has a vital role to play in expanding the country’s manufacturing base, creating employment, supporting regional enterprise development and improving foreign exchange earnings.

SLCGE said a stronger collective platform would enable SME apparel manufacturers to contribute more effectively to the future growth and international competitiveness of Sri Lanka’s apparel industry.

Whether an established exporter or an aspiring exporter, SLCGE provides a platform for collaboration, networking, capacity development and industry advancement, helping apparel businesses move towards their next stage of growth.

‘Join Us. Collaborate. Grow. Succeed,’ the Chamber stated, reaffirming its broader message: ‘One Industry. One Voice. One Future.’

Lanka Realty Investments PLC (LRI PLC) has successfully completed the strategic transfer of its 50.88% controlling stake in On’ally Holdings PLC to Lee Hedges PLC for approximately Rs. 2.26 billion, marking a significant milestone in the Group’s long-term strategy of creating a focused listed commercial property platform while enhancing financial flexibility across the Group.

Creating value through active asset management

LRI PLC acquired its investment in On’ally Holdings PLC during a challenging period for the commercial property sector with the conviction that Unity Plaza possessed significant untapped potential. Over Rs. 400 million was invested in renovating and modernising the property, upgrading infrastructure, enhancing common areas and optimising the tenant mix.

During LRI PLC’s stewardship, revenue increased from Rs. 181.70 million to Rs. 413.85 million, occupancy improved from 86.90% to 96.37%, retail rental rates increased from Rs. 332.53 to Rs. 966.73 per sq. ft. and office rental rates increased from Rs. 122.25 to Rs. 289.12 per sq. ft., demonstrating the Group’s ability to create substantial shareholder value through active asset management.

Delivering strong returns to shareholders

Including dividends of approximately Rs. 525.31 million received during ownership, the investment generated approximately Rs. 2.79 billion in cash value for LRI PLC and is expected to deliver an estimated separate-company gain of approximately Rs. 834.09 million before transaction costs, taxation and final audit adjustments.

Lee Hedges PLC becomes Group’s flagship commercial property company

The acquisition significantly strengthens Lee Hedges PLC by adding one of Colombo’s most recognisable income-producing commercial assets to its portfolio.

Unity Plaza has remained Sri Lanka’s leading technology retail and office destination for more than three decades, attracting consistent customer traffic, a diverse tenant base and resilient recurring rental income. Its addition enhances the scale, earnings visibility and long-term growth prospects of Lee Hedges PLC while creating an ideal platform for future commercial property acquisitions.

Strategic benefits for Lee Hedges PLC

Acquisition of a landmark income-producing commercial property.

Stronger recurring rental income and enhanced earnings visibility.

Increased scale to support future commercial property acquisitions.

Greater operational efficiencies and shareholder value creation.

Enhanced positioning as the Group’s dedicated listed commercial property platform.

Strengthening LRI PLC through disciplined capital recycling

For LRI PLC, the transaction releases approximately Rs. 2.26 billion of capital, substantially improving liquidity and creating additional financial flexibility to reduce borrowings, optimise the balance sheet and pursue new strategic investment opportunities.

Importantly, LRI PLC continues to retain an indirect strategic interest in Unity Plaza through its controlling shareholding in Lee Hedges PLC, allowing shareholders to continue participating in the future growth of this landmark asset while benefiting from a simplified and more efficient corporate structure.

Strategic benefits for LRI PLC

Unlocks approximately Rs. 2.26 billion in capital.

Improves liquidity and strengthens the balance sheet.

Provides capacity to reduce finance costs.

Creates flexibility to pursue strategic acquisitions and investments.

Demonstrates disciplined capital allocation and active portfolio management.

Continues indirect participation in Unity Plaza’s future growth through Lee Hedges PLC.

Lanka Realty Investments PLC Chairman Sarravanan Neelakandan said: ‘This transaction reflects the culmination of a disciplined, multi-year approach to asset management and value creation, while positioning the Group for its next phase of growth. By consolidating Unity Plaza within Lee Hedges PLC, the Group has established a dedicated listed commercial property platform with meaningful scale, recurring income and future acquisition potential. At the same time, LRI PLC has strengthened its balance sheet, released significant liquidity, and enhanced its ability to recycle capital into new investment opportunities. The Group continues to retain exposure to this iconic asset, while achieving a simpler and more focused corporate structure that the Board believes will support sustainable long-term value for shareholders. The Board acknowledges the contribution of the management team, led by Executive Directors Hardy Jamaldeen and Archie Warman, in delivering this outcome.’

This transaction represents another important milestone in the Group’s long-term strategy of disciplined investment management, active asset enhancement and capital recycling.

With Lee Hedges PLC now established as the Group’s dedicated listed commercial property company and LRI PLC benefiting from enhanced financial flexibility, both companies are well positioned to capitalise on future opportunities, expand their investment portfolios and continue delivering sustainable long-term value for shareholders.

Nearly 63 million Americans tuned in to watch Spain beat Argentina in the FIFA World Cup final on Sunday, shattering viewership records and underscoring football’s growing appeal in the US after decades of efforts to broaden its audience.

Held in New Jersey, the final remained scoreless until Spain broke through in the 106th minute to secure a 1-0 victory in extra time.

Fox’s English-language broadcast attracted 38.9 million viewers while Comcast’s Telemundo TV network and Peacock streaming platform pulled in another 23.9 million viewers for the Spanish-language coverage, the companies said. The combined audience far exceeded the 22.3 million US viewers who watched the 2022 World Cup final in Qatar.

The strong viewership capped what analysts said was a solid run for the tournament’s broadcasters, with Fox and Comcast paying roughly $ 485 million and $ 600million, respectively, for rights packages that included the World Cup, according to media reports. Several knockout-stage matches also outperformed recent championship games in other major US sports.

The round of 16 meeting between England and Mexico drew nearly 45 million viewers, well above the roughly 27 million who watched Game 7 of Major League Baseball’s World Series when the Los Angeles Dodgers beat the Toronto Blue Jays in extra innings, and the nearly 25 million who tuned in for Game 5 of the NBA Finals when the New York Knicks ended a 53-year title drought by defeating the San Antonio Spurs.

While the figures remained below the nearly 126 million viewers who watched Super Bowl LX when the Seattle Seahawks defeated the New England Patriots, they marked a significant milestone for a sport long overshadowed in the US by American football, basketball, and baseball.

The World Cup, co-hosted by the US, Canada, and Mexico for the first time, benefitted from prime-time kickoff slots for US audiences. Fans were also drawn by what could be the final World Cup appearances of a generation’s biggest stars, including Argentina’s Lionel Messi and his long-time Portuguese rival Cristiano Ronaldo. The last time the US hosted the tournament was in 1994.

Fox broadcast all 104 fixtures on its English platforms, and US viewership remained strong even after the USA were eliminated by Belgium in the round of 16 on 6 July.

The next World Cup will be co-hosted by Spain, Portugal, and Morocco in 2030, followed by Saudi Arabia in 2034. Both tournaments are likely to feature less favourable kickoff times for US viewers, which could weigh on future ratings.

In the end, it was a ten-minute hurricane that separated the sublime from the merely determined.

The first leg of the 80th Bradby Shield, played before a capacity crowd at the Royal Sports Complex on 11 July, was a contest that defied pre-match expectations for more than an hour. Royal College, entering the encounter after two comprehensive defeats to Trinity earlier this season, produced a display of resilience and courage that threatened to rewrite the script of the 2026 campaign. Yet, in a devastating 10 minute burst, Trinity College-the Lions of Kandy-shifted through the gears to secure a commanding 33-10 victory, placing one hand firmly on the Bradby Shield ahead of the second leg at Pallekele on 25 July.

The final scoreline, much like Trinity’s earlier victories of 58-26 and 48-15 this season, suggests a one-sided affair. The reality on the field was far more compelling.

Royal, led by the inspirational Disas Pathirana, threw everything at the reigning league champions. Their forwards, who had been overpowered in both the league meeting and the President’s Trophy final, produced one of their finest performances of the season. They matched Trinity physically and repeatedly challenged a defence that has been among the strongest in school rugby.

Trinity were restricted to a slender 7-3 lead at half-time-a scoreline that gave the Royal faithful genuine hope of reversing a season of disappointment.

For much of the second half, the blue-and-gold defensive wall held firm. Trinity’s much-vaunted attack, one of the competition’s most prolific throughout the season, was frustrated by Royal’s disciplined defence and determined tackling. As the minutes ticked away, the home supporters began to believe they might be witnessing one of the great Bradby upsets.

Then the Lions awakened.

With just under twenty minutes remaining, Trinity found another level. The patience that had defined their unbeaten campaign suddenly gave way to relentless intensity. The forwards laid a dominant platform, winning the collisions and quickening the tempo, while the backs finally found the space they had searched for all afternoon.

Breathtaking spell of rugby

What followed was a breathtaking spell of rugby.

In the space of ten minutes, Trinity tore the match away from Royal with a devastating burst of attacking rugby. Clinical execution replaced earlier frustration as wave after wave of pressure overwhelmed the home side. The precision, composure and attacking flair that had made Trinity the benchmark team of the 2026 season finally came to life, turning a fiercely contested encounter into a commanding victory.

By the final whistle, Trinity had transformed a tense contest into a 33-10 triumph, leaving Royal-despite an outstanding performance for much of the afternoon-to reflect on what might have been. The result gives Trinity a commanding 23-point aggregate advantage heading into the second leg.

More than simply a first-leg victory, it was another statement from a side pursuing one of the finest seasons in Trinity rugby history.

Remarkable triple awaiting

The Lions have already secured the President’s Trophy Knockout Championship and completed an unbeaten run to capture the Dialog Schools Rugby League title. Victory in the second leg would complete a remarkable triple and cement the team’s place among the school’s modern greats.

The statistics underline Trinity’s dominance. Throughout the league season they remained unbeaten, combining a potent attack with one of the competition’s most frugal defences. Their success has been built on an outstanding balance between power and precision. Forwards such as Abdeen, Jayah, Kumarasinghe and Achintha Jayasena have provided a formidable platform, while the backline-marshalled by fly-half Abdul Malik, scrum-half Wijekoon, Yaddehige and that great innovative game reader captain Shan Althaf-has consistently dismantled opposing defences with pace, vision and clinical execution.

Yet the Bradby Shield has never been governed by league form or statistics alone.

Royal College has long built its reputation on rising to the occasion when the Bradby is at stake. The rivalry has produced countless dramatic reversals over the decades and Royal will draw inspiration from both history and tradition as they prepare for the return leg.

When the teams meet again at Trinity College Rugby Stadium in Pallekele on 25 July, Royal will require something extraordinary to overturn a 23-point deficit. Trinity, meanwhile, needs only to complete the task they have begun and capture what would be another memorable Bradby Shield triumph. The expectations of the fans are overwhelming and a record score is what is aspired by Trinity faithfuls.

Should this exceptional group reproduce the composure, discipline and devastating finish that defined the closing stages of the first leg, they will do far more than lift another trophy. They will secure their place among the great Trinity sides-champions who conquered every major challenge before them and restored the Bradby Shield to Kandy in emphatic fashion.

The world of Trinity rugby now waits with anticipation.

The Insurance Regulatory Commission of Sri Lanka (IRCSL), in collaboration with the Insurance Association of Sri Lanka (IASL), will hold two major public awareness programmes in Kurunegala and Kuliyapitiya on 23 and 24 July 2026.

Conducted under the national theme “Insurance for All: For a Secure Future,” the initiative aims to improve public awareness of insurance, strengthen financial literacy, and encourage greater insurance inclusion among communities across Sri Lanka.

It will bring together a broad spectrum of participants, including public sector officials, business representatives, bankers, university students, Small and Medium Enterprise (SME) representatives, and members of the general public. The sessions will provide practical knowledge on the importance of insurance, policyholder rights and responsibilities, available insurance products, and the role of insurance in protecting individuals, families, and businesses against unforeseen financial risks.

The programs are scheduled as follows:

23 July 2026 – Provincial Council Auditorium, Kurunegala

Session 1 – 9.30 a.m. to 12.30 p.m.

Session 2 – 1.30 p.m. to 4.30 p.m.

24 July 2026 – Wayamba University of Sri Lanka, Kuliyapitiya (9.30 a.m. – 12.30 p.m.)

A special feature of the Kurunegala program will be the Insurance Industry Roadshow, which will be held throughout the day alongside the awareness sessions. All 29 licensed insurance companies in Sri Lanka will participate, giving the public a valuable opportunity to meet insurance advisors from both life and general insurance companies.

Public can learn about different insurance products and services, clarify their insurance-related questions, and receive guidance from industry professionals. Other key insurance industry stakeholders will also participate, allowing the public to better understand the insurance sector and the services it offers.

The roadshow will also include a Career Guidance Desk, where students, graduates, and job seekers can learn about career opportunities in the insurance industry, receive career advice, and submit their Curriculum Vitae (CVs) directly to participating insurance companies.

These sessions will focus on ethical conduct, professional standards, regulatory requirements, and good practices to help improve the quality of service provided to policyholders.

This awareness campaign forms part of IRCSL’s broader national strategy to increase insurance penetration and promote a culture of financial preparedness throughout the country. It also supports the Commission’s ongoing efforts to enhance consumer confidence and improve financial resilience through education and awareness.

The initiative is being organised with the active support of the Insurance Association of Sri Lanka (IASL) and other industry stakeholders such as Sri Lanka Insurance Brokers Association, Sri Lanka Insurance Institute etc. reflecting the industry’s collective commitment to expanding public access to insurance knowledge and services.

These programs build on the success of previous awareness campaigns conducted across the country, which have reached thousands of participants through workshops, educational sessions, and community engagement activities. IRCSL intends to continue expanding these district-level programmes to ensure that insurance education reaches every region of Sri Lanka.

The Commission warmly invites the public and all interested stakeholders to participate in these awareness programmes and gain valuable insights into how insurance can contribute to financial security and long-term well-being.

The Colombo stock market ended a three-session losing streak to close yesterday in the green buoyed by the Central Bank of Sri Lanka’s monetary policy decision to hold rates steady.

The ASPI ended up 0.02% or 3.83 points at 21,149.56 but the S and P SL20 ended down 0.21% or 12.39 points at 5,932.62.

Turnover was over Rs. 3.5 billion on over 91.1 million shares traded. Foreign investors were net sellers on a net outflow of Rs. 241 million.

First Capital Research said investor sentiment remained positive following the Central Bank of Sri Lanka’s decision to maintain policy interest rates, supporting buying interest despite the mixed performance of the benchmark indices.

Both HNW and retail investor participation remained high during the session, contributing to overall market activity. The main positive contributors to the ASPI were SEYB, LION, PKME, CARG, and SEMB.X.

The real estate management and development sector led the daily turnover with a share of 65%, amid higher number of crossings seen in ONAL, followed by the banking, and diversified financials sectors collectively contributing 15%.