Category: Daily Financial Times

Sri Lanka’s Acting High Commissioner Ruvini De Silva met the Kenya Airways Acting Group Managing Director and CEO George Kamal recently to discuss strengthening aviation connectivity and expanding bilateral cooperation between Sri Lanka and Kenya.

The discussions focused on promoting Sri Lanka Expo 2027, Sri Lanka’s premier international trade exhibition, scheduled to be held in Colombo from 14-17 January 2027.

In this regard, the Acting High Commissioner briefed the CEO on the two promotional briefing sessions that will be hosted by the High Commission in Nairobi on 25 September 2026 and Mombasa on 02 October 2026 to create awareness among the Kenyan business community and encourage participation in the Expo.

The Acting High Commissioner invited Kenya Airways to explore a strategic travel partnership for Sri Lanka Expo 2027, including the possibility of offering attractive travel packages and promotional fares for delegates travelling from Kenya and the wider East African region to Colombo.

The meeting also explored avenues for broader and long-term collaboration between Kenya Airways and Sri Lankan Airlines. Discussions covered potential partnerships in passenger and cargo operations, airline catering services, aviation medicine, technical cooperation, and knowledge sharing aimed at enhancing connectivity and supporting trade and tourism between the two countries.

Both sides further discussed the importance of strengthening the institutional framework governing air connectivity and exchanged views on the possibility of renewing the Air Services Agreement between Sri Lanka and Kenya to facilitate increased air services and deepen bilateral economic engagement.

CEO Kamal welcomed the initiatives of the High Commission and expressed Kenya Airways’ interest in exploring areas of mutual cooperation that would enhance connectivity and create greater value for both countries.

The meeting concluded with both parties reaffirming their commitment to maintaining close engagement and pursuing mutually beneficial partnerships to strengthen aviation, trade, tourism, and people-to-people links between Sri Lanka and Kenya.

Sampath Bank PLC said its Basel III-compliant Tier 2 Green Bond issue was oversubscribed after receiving applications exceeding Rs. 10 billion, prompting the offer to close early in line with the prospectus.

On Friday, the bank said it had received applications for more than Rs. 10 billion under the listed, rated, unsecured, subordinated, redeemable Green Bond issue with a non-viability conversion feature.

The offer comprised an initial issue of up to 70 million Basel III-compliant Tier 2 Green Bonds at a par value of Rs. 100 each to raise up to Rs. 7 billion. The bank also retained the option to issue a further 30 million Bonds to raise an additional Rs. 3 billion in the event of an oversubscription, taking the maximum issue size to Rs. 10 billion.

Following the oversubscription, Sampath Bank said the issue closed at 4:30 p.m. on 17 July. The bank added that the basis of allotment will be announced to the Colombo Stock Exchange in due course.

Sri Lanka’s Inland Revenue Department (IRD) has made significant progress after years of neglect, but its reform drive faces structural hurdles that could undermine the sustainability of tax administration improvements unless the institution itself is strengthened, economic policy think tank Arutha Research has warned.

In its July 2026 Solution Brief ‘Inland Revenue Department Needs Strategy Not Tactics,’ Arutha said the national tax system is now in a much stronger position than a few years ago, with Government revenue rising to 16.7% of GDP in 2025 from a low of 8.3% in 2021.

However, the think tank cautioned that while tax policy reforms have advanced, the IRD’s own institutional transformation remains incomplete, with weaknesses in staffing, technology, processes, and compliance systems continuing to constrain its effectiveness.

‘The IRD is in a better condition – and functioning more effectively – than even a year ago. That is a cause for celebration. But not too much celebration,’ Arutha said, noting that significant problems remain.

‘The IRD, having previously long been a conservative organisation that had fallen well behind most other countries in reforming its practices and adopting new technologies, is now at some risk of going to the opposite extreme,’ it warned.

The central concern is that the IRD is being asked to operate as a modern tax administration while still carrying the legacy of years of underinvestment and limited organisational reform. The Department remains short of staff with specialist IT and related skills, is only partly digitalised, and continues to devote considerable resources to inefficient manual processes. It also highlighted a backlog of basic procedural issues requiring resolution.

A major weakness is the limited use of risk-based compliance methods. Modern tax administrations typically use data and risk analysis to identify high-risk taxpayers and transactions, allowing limited audit resources to be targeted more effectively. However, the think tank said the IRD continues to rely heavily on the traditional approach of checking broadly to ensure figures are correct.

The report also flagged unresolved issues involving tax arrears and taxpayer records. It said many disputed tax arrears may never be recovered and require a process for writing off unrecoverable amounts. It also called for the taxpayer register to be cleaned of large numbers of individuals unlikely to generate tax revenue following the 2023 registration drive.

The Large Taxpayer Unit, which is critical for revenue collection, is also constrained, with staff tied up in legal processes arising from previous assessments instead of focusing on auditing large taxpayers.

While acknowledging recent achievements, Arutha warned that some reforms are not as robust as they appear.

It cited the improved Value Added Tax (VAT) refund system following the abolition of Simplified VAT (SVAT) as a major achievement but cautioned that the process is not fully digital. The final stage still requires substantial manual work, with around 40 IRD officers permanently deployed since January 2026.

The think tank warned that continued dependence on scarce staff resources could create risks of earlier VAT refund problems returning.

It also raised concerns over the Government’s efforts to expand third-party data access for the IRD, saying Sri Lanka lacks adequate data governance systems to ensure taxpayer information is used securely, legally, and with public confidence.

Arutha questioned some recent compliance initiatives, including IRD street-level surveys in Colombo aimed at identifying unregistered businesses.

While recognising the move as a significant departure from the IRD’s traditionally office-based approach, it said international experience shows such operations are generally ineffective in identifying major sources of tax evasion and can consume significant staff resources.

The think tank argued that focusing heavily on small businesses risks diverting attention from larger-scale tax evasion, which is more likely to involve businesses and individuals outside crowded commercial areas.

It also criticised the proposed Privilege Card scheme for income taxpayers, warning that providing protection from tax inquiries based on increased declarations could unintentionally benefit taxpayers who had previously underpaid taxes while disadvantaging those who had complied consistently.

However, Arutha stressed that the IRD today is in a substantially better position than it was two years ago.

It highlighted improved morale within the Department, recruitment of 100 new Inland Revenue Service officers in January 2026, greater leadership stability, improvements to the Revenue Administration Management Information System (RAMIS) digital tax platform, and the successful transition away from SVAT without the disruption exporters had feared.

The think tank also welcomed stronger cooperation between the IRD and Customs Department, including joint investigations into import undervaluation and tax evasion, as well as the establishment of the Tax Policy Analysis Unit and the inter-agency Tax Crime Investigation Unit.

Arutha said Sri Lanka now has an opportunity to build a modern tax administration capable of supporting the Government’s target of raising revenue to 20% of GDP. But achieving that, it argued, depends less on additional initiatives and more on rebuilding the IRD’s institutional capacity to deliver sustained reform.

When I stepped off the plane in Kunming, I didn’t expect to find a mirror reflecting my own country’s potential. As a Sri Lankan student arriving for a media seminar, I came seeking professional knowledge. What I discovered instead was a roadmap – not just for China, but for every nation in the Global South that dares to dream of a better tomorrow.

Seeing ourselves in Kunming’s story

The moment I felt Kunming’s cool highland breeze, I was transported home. The misty mornings, the blooming flowers, the crisp mountain air – these were the landscapes of Sri Lanka’s own Upcountry. Yet here, in Yunnan Province, I witnessed something extraordinary: a developing nation that had turned its natural gifts into engines of prosperity without losing its soul.

For those of us from the Global South, China’s story is not a distant fairy tale. It is a testament to what is possible when visionary governance meets cultural confidence. The poverty alleviation strategies we studied in our seminars were not abstract theories – they were visible in every thriving village, every bustling market, every smiling vendor who had been lifted from hardship into dignity.

From documents to daily life

The Communist Party of China (CPC) white papers spoke of ethnic harmony, cultural prosperity, and common prosperity. In Kunming, these were not words on paper – they were the rhythm of daily life.

I watched elderly women dancing in public squares each morning – Guangchang Wu – their joy a living monument to a society that values its elders and nurtures community bonds. I walked through ethnic minority villages where ancient traditions were not museum pieces but thriving economic assets, with colourful costumes and handmade crafts finding eager buyers from around the world.

This is the vision we in the Global South share: development that does not erase identity but amplifies it. Progress that does not isolate but unites. Modernisation that does not forget, but honours.

A shared language of hope

Everywhere I traveled in Kunming, I saw possibilities for my own Sri Lanka. The electric bikes weaving quietly through streets reminded me of our own need for sustainable transport. The seamless integration of heritage and tourism spoke to our island’s untapped potential. The genuine warmth of the Chinese people – their eagerness to share meals, stories, and aspirations – echoed the hospitality we Sri Lankans pride ourselves on.

This is not coincidence. This is the language of the Global South: a shared understanding that our challenges are interconnected, and so too must be our solutions.

What we all want

As a delegate from Sri Lanka, I represented not just my nation but a broader aspiration felt across the developing world. We want:

Dignity without dependency – the ability to stand on our own feet while remaining connected to global progress

Heritage without stagnation – the freedom to honour our past while building our future

Growth without inequality – prosperity that lifts everyone, not just a privileged few

Unity without uniformity – strength in diversity, harmony in difference

Kunming showed me that these are not impossible dreams. They are achievable realities when governance is people-centred, when policies are thoughtfully designed, and when communities are empowered to become architects of their own destiny.

Lessons for the Global South

What can we in Sri Lanka and across the developing world learn from Kunming?

First, that visionary policies must be long-term. China’s success did not happen overnight – it was built through decades of consistent, strategic planning that prioritised the well-being of its people.

Second, that cultural confidence is an economic asset. By celebrating and innovating their ethnic traditions, Yunnan’s communities have created sustainable livelihoods that attract visitors from across the globe.

Third, that sustainability is not a luxury for the wealthy – it is a necessity for all. Kunming’s green transport, clean streets, and respect for natural beauty are not just aesthetic choices; they are investments in a liveable future.

Fourth, that community bonds are the bedrock of resilience. The square dancers, the friendly shopkeepers, the welcoming families – these are not ornaments to development but its very foundation.

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China has shown us that development and heritage, modernity and tradition, growth and harmony are not contradictions but companions. It is time for us to write our own stories of transformation – rooted in our unique cultures, driven by our shared aspirations, and guided by the conviction that a better world is not just possible, but already unfolding

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A shared future, together

As I prepared to return to Sri Lanka, I carried more than beautiful memories and new friendships. I carry a renewed conviction that the future we in the Global South seek is not only possible – it is already being built in places like Kunming.

The Belt and Road Initiative is not just an infrastructure project. It is a bridge between dreams – a recognition that our destinies are intertwined and that prosperity, like spring, should know no borders.

Kunming’s “Eternal Spring” is more than a climate. It is a promise: that renewal is always possible, that hope is never out of season, and that by learning from each other, we can all bloom together.

A call to our nations

To my fellow Sri Lankans, to our neighbours across the Global South: let us look to Kunming not with envy but with inspiration. Let us ask ourselves: What would our own eternal spring look like? What policies would nurture it? What traditions would sustain it? What future would we build together?

The answers are within our reach. China has shown us that development and heritage, modernity and tradition, growth and harmony are not contradictions but companions. It is time for us to write our own stories of transformation – rooted in our unique cultures, driven by our shared aspirations, and guided by the conviction that a better world is not just possible, but already unfolding.

Kunming changed how I see the world. It showed me that the dreams of the Global South are not naive fantasies – they are blueprints waiting to be built. The city’s eternal spring is real, and it belongs to all of us who dare to believe in a shared future.

As I board my flight home, I carry a full heart, a clear vision, and an unshakeable hope: that if Kunming can bloom on a highland plateau, then Sri Lanka and every nation of the Global South – can flourish in its own way, in its own time, together.

Sri Lanka and India have amended their Double Taxation Avoidance Agreement (DTAA) to introduce the internationally recognised Principal Purpose Test (PPT), empowering tax authorities in both countries to deny treaty-based tax benefits where one of the principal purposes of an investment or transaction is to obtain a tax advantage rather than support genuine commercial activity.

The amended protocol entered into force on 19 June after both countries completed their domestic legal procedures and has since been notified by Sri Lanka’s Finance Ministry. The revised provisions will apply in India to income derived from 1 April 2027.

The PPT is a key anti-tax avoidance measure developed under the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) framework. It allows tax authorities to refuse benefits available under the bilateral tax treaty if it is reasonable to conclude that securing a treaty-related tax advantage was one of the principal purposes of an arrangement or transaction, unless granting the benefit is consistent with the treaty’s object and purpose (https://www.ft.lk/top-story/Govt-in-the-dark-as-FDI-tax-incentives-become-obsolete/26-794423).

The amendment also revises the treaty’s preamble to clarify that the agreement is intended to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or tax avoidance.

For businesses operating between Sri Lanka and India, the changes mean treaty benefits will increasingly depend on whether investments and corporate structures are supported by genuine commercial substance rather than being established primarily to obtain favourable tax treatment.

The revised treaty shifts the focus from merely satisfying technical requirements, such as tax residency and documentation, to demonstrating a legitimate commercial rationale for cross-border arrangements.

The protocol aligns the India-Sri Lanka tax treaty with international tax standards under the OECD’s BEPS initiative and reflects the growing global emphasis on protecting tax revenues while facilitating genuine cross-border trade and investment.

Youth Test between Sri Lanka and India ended in a high-scoring draw at the Galle International Cricket Stadium last week.

A total of 1178 runs were scored for the loss of 25 wickets over the four days with neither side having the opportunity to press for a win on a pitch that was a heartbreak for the bowlers.

In reply to Sri Lanka’s first innings of 424-9 declared, India were all out for 576. Opening batsman Lakshya Raichandani scored a double century (207 off 324 balls, 22 fours, 3 sixes) and was supported by hundreds from his opening partner Sagar Virk (134) and wicket-keeper Manav Krishna who reached his century yesterday – 100 off 153 balls (6 fours, 3 sixes). 17-year-old right-arm seamer Lathendra Akash was the pick of the Lankan bowlers ending with 3/66.

Trailing by 152 runs, Sri Lanka made 178-6 in their second innings when the match was called off. Dulnith Sigera (72 off 77 balls, 3 fours, 5 sixes) and Kavija Gamage (51 off 66 balls, 7 fours, 1 six) hit fifties apiece while skipper Yashbardhan Chauhan helped himself to four wickets with his off-spin.

The second U19 Youth Test will be played at the

R. Premadasa Cricket Stadium from today (20). – [ST]

Scores:

Sri Lanka (U19) 424-9 decl.

and 178-6 (Dulnith Sigera 72, Kavija Gamage 51, Chamika Heenatigala 21*, Yashbardhan Chauhan 4/49) vs. India (U19) 576 (o/n 378-3) (Lakshya Raichandani 207, Sagar Virk 134, Kushagra Ojha 24, Kush Patel 42, Manav Krishna 100, BK Kishore 23, Lathendra Akash 3/66, Kavija Gamage 2/117, Dimath Abeysinghe 2/142)

The Exporters Association of Sri Lanka (EASL) elected its new office-bearers and Executive Committee at its 29th Annual General Meeting (AGM), held recently with the participation of exporters, industry leaders, Heads of Missions, trade officials, and representatives from across Sri Lanka’s export sector.

The event was attended by World Bank Group Country Manager for Sri Lanka and the Maldives Gevorg Sargsyan as Chief Guest, together with Heads of Missions, trade representatives, and senior members of the business community, reflecting the growing importance of strengthening collaboration to support Sri Lanka’s export growth.

Nalaka Ratnayake was elected Chairperson of the Association for the forthcoming term. He will be supported by Manuje Hordagoda as First Vice Chairperson and Rozanne de Almeida as Second Vice Chairperson. Outgoing Chairperson Yohan Lawrence will continue to serve the Association as Immediate Past Chairperson.

Lawrence reflected on the EASL’s advocacy efforts over the past year, particularly on issues affecting the export sector, including the repeal of the Simplified Value Added Tax (SVAT) scheme, trade facilitation measures, and the implementation of the National Single Window. He noted that the Association had continued to engage policymakers and relevant authorities to ensure exporters’ concerns were represented, while advocating for reforms that enhance Sri Lanka’s competitiveness in international trade.

Delivering the keynote address, Sargsyan said that while Sri Lanka has made encouraging progress in its economic recovery, the next challenge is to strengthen competitiveness to accelerate growth and create more jobs. He highlighted that manufacturing value added per worker remains less than half that of Vietnam and about one-third that of the Philippines, while Sri Lanka was the only peer economy to record negative labour productivity growth in 2024. To strengthen export competitiveness, he emphasised three priorities: lowering the cost of doing business, expanding market access, and attracting higher-quality foreign investment.

‘No country, particularly a small country, has ever sustained prosperity by looking inward. Every success story was built on deeper integration, stronger exports, and rising productivity. Sri Lanka has the ingredients that others would envy: the location, the talent, and an entrepreneurial private sector that has weathered the worst and is still standing. The task now is to turn those advantages into a more competitive economy,’ he said.

Addressing the membership for the first time as Chairperson, Ratnayake outlined his vision for the Association and the broader export sector, calling for accelerated reforms to position Sri Lanka among Asia’s most competitive and business-friendly export destinations.

He emphasised the need to fast-track trade digitalisation through the full implementation of an integrated National Single Window, improve the ease of doing business, strengthen logistics competitiveness, and reduce the cost of exporting. He also highlighted the importance of export diversification, greater integration into global value chains, and increasing the participation of small and medium-sized enterprises (SMEs), noting that a broader and more inclusive export base would contribute to a stronger and more resilient economy.

The newly elected Executive Committee comprises representatives from Akbar Brothers Ltd., Beira Brush Ltd., Ceylon Biscuits Ltd., CIC Holdings PLC, Dipped Products PLC, Hatton National Bank PLC, Hayleys PLC, Joint Agri Products Ceylon Ltd., Lion Brewery (Ceylon) PLC, Nidro Supply Ltd., Sampath Bank PLC, Sri Lanka Export Credit Insurance Corporation (SLECIC), Tea Tang Ltd., and Vintage Teas Ceylon Ltd., together with representatives from the Association’s member associations, bringing together a broad cross-section of expertise from Sri Lanka’s export industry.

Long before US astronaut Neil Armstrong took ‘one small step’ that became ‘a giant leap for humankind’, generations of readers had already travelled there in the pages of Hergé’s Destination Moon (1953) and its sequel Explorers on the Moon (1954).

For many children of the Space Age, those graphic novels were their first glimpse of what a lunar expedition might look like: the sleek red-and-white rocket, the cumbersome spacesuits, the eerie silence of the moon, and the thrill of setting foot on Earth’s only natural satellite.

The remarkable thing is not merely that Hergé imagined the journey. It is how astonishingly accurate much of it proved to be. Working with scientific advisers, the Belgian cartoonist depicted weightlessness, working in a vacuum, oxygen supplies, orbital mechanics and lunar geology with uncommon accuracy (as events later transpired).

The persistent claim that Destination Moon became a training manual for NASA astronauts, however, is more myth than history. There is no evidence that the National Aeronautics and Space Administration formally used Hergé’s work as part of the US’s training programs.

Yet numerous astronauts, engineers and space enthusiasts have acknowledged that Tintin inspired their childhood fascination with space. In that sense, the fictional voyage became a very real launching pad.

Lunar milestone

This July marks another milestone. Today, it will be 57 years since a human being first set foot on the moon during the Apollo 11 mission in 1969. The anniversary invites not merely nostalgia, but a fresh look at what has happened since, as well as where humanity may be heading next.

The road to Tranquillity Base was paved by an extraordinary succession of unmanned flights. Before Armstrong’s famous footprint, both the Soviet Union and the United States launched dozens of robotic missions in a frantic Cold War contest. Between 1958 and July 1969, roughly 60 lunar probes were attempted by the two superpowers, with many failures and much spectacular success.

Soviet Luna missions achieved several historic firsts: the first spacecraft to reach the moon, the first impact, the first photographs of the far side, and the first soft landing. America’s Ranger, Surveyor and Lunar Orbiter program, meanwhile, photographed potential landing sites and demonstrated that astronauts could land safely. Apollo itself was preceded by uncrewed Saturn V test flights before carrying astronauts.

Only one nation has actually landed people on the moon: the United States. Between Apollo 11 in July 1969 and Apollo 17 in December 1972, six Apollo missions successfully landed astronauts on those sunlit silvery plains: Apollos 11, 12, 14, 15, 16 and 17. Apollo 13, famously crippled by an onboard explosion, never landed, but remains one of history’s greatest feats of crisis management.

In total, twelve human beings (and all of them Americans) have walked on the moon. No Soviet, Russian, Chinese or European astronaut has yet followed them.

More moon missions

That monopoly, however, is unlikely to last much longer. The state of play today is arguably more exciting than at any point since the early 1970s.

NASA’s Artemis program seeks to return astronauts to the lunar surface, including the first woman and the first person of colour to walk there, while establishing a sustained human presence around the moon through the planned Lunar Gateway space station.

China, meanwhile, has emerged as perhaps America’s principal competitor in the lunar race. Following the success of its Chang’e robotic missions – including returning lunar samples and landing on the moon’s far side – it plans to land astronauts before the end of this decade in partnership with Russia’s proposed International Lunar Research Station.

India has also dramatically altered the landscape. In 2023, Chandrayaan-3 achieved the first successful landing near the moon’s south pole, placing our nearest neighbour among the handful of nations capable of soft lunar landings.

Japan followed with its SLIM precision lander. Private companies are joining the race as well, while Europe contributes through the European Space Agency’s participation in Artemis, spacecraft development and scientific instruments.

Plant the flag

So how many countries have planted their flags on the moon?

The answer depends on what one means by ‘planting flags’. Six American flags were physically planted during the Apollo landings. China has planted its national flag through robotic missions using specially designed unfurling mechanisms. Soviet probes carried the USSR’s iconic hammer and sickle emblem; while India, Japan and others have deposited national symbols aboard their spacecraft. Yet only the Stars and Stripes has been carried there by human hands.

The deeper significance lies not in flags but in capability. Today, the club of nations able to reach the moon extends well beyond ‘the usual suspects’.

The United States, Russia (through Soviet achievements), China, India and Japan have all achieved successful lunar surface missions. Europe, although lacking an independent crewed lunar program, plays a central role through the European Space Agency. South Korea and the United Arab Emirates have successfully operated lunar orbiters, demonstrating that access to cislunar space is widening rapidly.

Beyond destination moon

The moon is no longer merely a destination. It is increasingly viewed as a strategic resource.

Previous explorations have revealed substantial deposits of water (in the form of ice) trapped in permanently shadowed craters near the poles.

Water can be split into hydrogen and oxygen, providing both drinking water and rocket fuel. Lunar regolith also contains oxygen bound within minerals, titanium, aluminium, silicon, rare earth elements and traces of helium-3, a rare isotope often discussed as a possible future fusion fuel, although commercially viable fusion remains elusive.

This prospect transforms the moon into something resembling humanity’s closest ‘space station’ of a sort. Rather than launching every kilogramme from Earth’s deep gravity well, future explorers could manufacture fuel and supplies on the moon before venturing onwards to Mars and beyond.

Such a staging point could significantly reduce the costs of deep-space exploration.

Explorers on the moon and Mars

So could humanity’s escape from a rapidly warming planet (or from other man-made and natural disasters in the offing) one day rely upon this lunar outpost?

Probably not in the sense of mass migration. The moon is a profoundly hostile environment – lacking atmosphere, shielding from radiation and liquid water at the surface. It is unlikely ever to become a refuge for billions. But it could become an indispensable industrial and scientific base that enables our species to expand permanently into the solar system.

Mars remains the obvious long-term destination for human settlement. Beyond Mars, the picture becomes more speculative. Titan, Saturn’s largest moon, possesses a thick nitrogen atmosphere and abundant hydrocarbons, but it is lethally cold. Io, by contrast, is perhaps the least hospitable major world in the Solar System, wracked by constant volcanic eruptions driven by Jupiter’s immense gravity. Europa and Enceladus, whose sub-surface oceans may harbour conditions favourable to life, are generally considered more promising scientific targets than Io. For human habitation, however, none currently rivals Mars.

Geopolitics rising

Yet, the moon raises another question: will geopolitics readily spill over into the lunar race now unfolding between the United States, China and other players? History suggests it almost certainly will.

The Apollo program itself emerged from Cold War rivalry with the Soviet Union. Today’s competition is less ideological than technological, economic and strategic. Access to water, control of infrastructure, communications networks, navigation systems and resource-rich regions around the lunar south pole all carry geopolitical significance. And the emerging competition increasingly resembles the contest for influence in the Arctic or the world’s sea lanes.

Whether that rivalry becomes confrontational depends partly on international law.

The cornerstone remains the 1967 Outer Space Treaty, which declares that the eponymous area (including the moon) cannot become the sovereign territory of any nation. It prohibits weapons of mass destruction in space and commits states to peaceful exploration for the benefit of all humankind.

The 1979 Moon Agreement goes farther in proposing that lunar resources constitute the ‘common heritage of mankind’; but major space-faring nations including the United States, Russia and China never ratified it.

More recently, the Artemis Accords led by the United States and signed by dozens of countries, establish principles for transparency, inter-operability and the peaceful use of space. China and Russia have instead pursued alternative cooperative frameworks.

Whether these legal instruments are adequate to protect not only national and international but also our species’ best interests remains uncertain. Existing treaties were drafted before commercial mining, permanent lunar settlements and strategic competition became realistic possibilities.

If terrain conflicts were ever to spill over into the near vicinity of the space between Earth and Luna, today’s legal architecture would almost certainly face severe strain.

Smaller blocs of powerful nations, including the European Union and several BRICS members, are already participating in various ways. Europe contributes major hardware, astronauts and scientific expertise to Artemis. India is steadily expanding its ambitions. Brazil, South Africa and others may join through international partnerships. So lunar exploration is becoming less an exclusive club than an increasingly interconnected global enterprise.

Perhaps the greatest ramification is philosophical rather than political. Colonisation of the moon should never become an excuse for failing to mitigate the fallout from a rapidly warming planet.

There is no Planet B waiting conveniently overhead, as in sci-fi or fantasy. The moon may help us become an interplanetary civilisation, but it cannot replace the fragile blue world that remains our only true home.

Fifty-seven years after Armstrong’s first footprint, the moon once again stands at the centre of history. Not simply as an object of scientific curiosity or nationalist prestige, but as the first stepping stone towards a wider human future among the planets. The next ‘one small step’ may lead not only to Mars, but eventually to destinations scarcely imaginable today

The next ‘one small step’

Fifty-seven years after Armstrong’s first footprint, the moon once again stands at the centre of history. Not simply as an object of scientific curiosity or nationalist prestige, but as the first stepping stone towards a wider human future among the planets. The next ‘one small step’ may lead not only to Mars, but eventually to destinations scarcely imaginable today.

One suspects that Hergé would have smiled at the thought. Professor Calculus would already be calculating trajectories with serene confidence. Tintin would be eager to investigate whatever mysteries awaited beyond the next crater. And Captain Haddock, after a characteristically thunderous ‘billions of blue blistering barnacles!’, would probably still be wondering whether anyone remembered to pack a decent bottle of his favourite hooch for the voyage.

Ambeon Capital PLC has unveiled plans to raise up to Rs. 4 billion through a combination of a Rights Issue and a contingent private placement to strengthen its capital structure, reduce gearing, and fund new investments in high-growth sectors.

The Board of Directors resolved on 16 July to proceed with a Rights Issue of up to 100 million ordinary voting shares at Rs. 32 each, targeting proceeds of up to Rs. 3.2 billion. Existing shareholders will be entitled to subscribe for one new ordinary share for every 10.22352863 shares held.

Ambeon Capital shares ended Friday unchanged at Rs. 31.10.

Alongside the Rights Issue, the Board has approved a private placement of up to 25 million ordinary voting shares at the same issue price of Rs. 32 per share to raise a further Rs. 800 million. The private placement will proceed only if the Rights Issue is fully subscribed and applicants under the Rights Issue specifically apply and pay for the placement shares.

The private placement will be open to shareholders subscribing under the Rights Issue as well as investors purchasing Rights on the Colombo Stock Exchange (CSE) during the Rights trading period and applying for the additional shares. If applications exceed 25 million shares, allocations will be made on a pro-rata basis.

Ambeon Capital said the proceeds will be used to strengthen the company’s capital structure by reducing its gearing ratio while funding new equity investments in high-growth sectors, including financial services, technology, real estate, and fast-moving consumer goods (FMCG).

The Board said it considers the Rs. 32 issue price to be fair and reasonable despite being above the market closing price of Rs. 30.10 on the trading day immediately preceding the resolution. It noted that the company’s shares had experienced heightened volatility following the West Asia conflict and that the issue price reflected its assessment of fair value and expected market conditions.

Both the Rights Issue and the private placement remain subject to CSE approval in principle for the Issue and listing of the new shares. The Rights Issue also requires shareholder approval by ordinary resolution, while the private placement is subject to approval by special resolution at a General Meeting.

The Association of Human Resource Professionals (AHRP) Sri Lanka celebrated its Silver Jubilee with a landmark conference that looked beyond its first 25 years to the future of work, bringing together policymakers, business leaders, HR professionals and global experts to examine how artificial intelligence (AI), digital transformation and skills-based talent strategies are reshaping organisations.

Held at Cinnamon Life yesterday, the conference was graced by Prime Minister Dr. Harini Amarasuriya as Chief Guest, highlighting the growing importance of human capital in driving Sri Lanka’s economic transformation and future competitiveness.

Congratulating AHRP on its Silver Jubilee, she said HR professionals play a critical role in building organisational cultures that promote learning, innovation and leadership while helping organisations navigate technological transformation.

She also called for stronger collaboration between Government, industry and educational institutions to develop a future-ready workforce.

“The greatest competitive advantage of any nation is its human capital – the knowledge, skills, creativity and resilience of its people,” she said.

Welcoming participants, Association of Human Resource Professionals Sri Lanka President Thushara Jayawardana reflected on AHRP’s remarkable journey over the past 25 years and its contribution to advancing the HR profession in Sri Lanka.

He said the association has consistently championed professional excellence, ethical leadership and innovation in human resource management while helping organisations navigate an increasingly dynamic business environment.

Jayawardana noted that as organisations enter an era shaped by AI and rapid technological disruption, HR professionals have an even greater responsibility to build resilient, future-ready workplaces through continuous learning, people development and organisational transformation.

“Our greatest achievement is not the first 25 years we celebrate today, but the foundation we have laid for the next 25,” he said, reaffirming AHRP’s commitment to shaping the future of work through leadership, innovation and professional excellence.

As part of its Silver Jubilee celebrations, AHRP also commemorated the milestone with a ceremonial market-opening bell-ringing at the Colombo Stock Exchange (CSE). Led by President Thushara Jayawardana together with the Executive Committee and CSE officials, the event symbolised the association’s contribution to advancing Sri Lanka’s HR profession over the past 25 years while marking the beginning of its next chapter.

Reflecting on the association’s beginnings, AHRP Founder President Chitral Amarasiri recalled the vision that inspired its establishment 25 years ago.

He said AHRP was founded with the objective of elevating human resource management into a recognised strategic profession capable of contributing directly to organisational success and national development.

Looking back on the association’s achievements, Amarasiri commended the generations of HR professionals who have helped build AHRP into one of Sri Lanka’s leading professional bodies while continuing to uphold excellence, integrity and lifelong learning.

Established in 2000, the Association of Human Resource Professionals (AHRP) Sri Lanka is the country’s leading professional body for HR practitioners. For 25 years, it has championed professional excellence, leadership development and innovation in human resource management while supporting organisations in building resilient and future-ready workforces.

LinkedIn insights

The conference featured a keynote presentation titled “Redefining the Future of Work,” delivered by LinkedIn Director – Sales, Talent and Learning Solutions for South India and Sri Lanka Ankit Khanna, who explored the transformative impact of artificial intelligence, skills-based hiring and changing workforce dynamics.

Drawing on LinkedIn’s global workforce insights, Khanna revealed that 60% of professionals globally are expected to seek new employment opportunities in 2026, while the figure rises to 68% in Sri Lanka, reflecting increasing workforce mobility.

He also noted that AI is rapidly reshaping Sri Lanka’s skills landscape, with six of the country’s ten fastest-growing skills now linked to artificial intelligence and technology infrastructure.

Khanna revealed that over 590,000 Sri Lankan professionals are active on LinkedIn, representing a 188% year-on-year increase, while time spent on the platform has doubled, highlighting growing engagement in professional networking and career development.

Addressing talent migration, he observed that Sri Lanka continues to experience an outflow of skilled professionals, although the trend has improved significantly. LinkedIn data showed that talent outflow declined by 45%, with professionals leaving the country falling from 55,358 in 2023 to 24,887 in 2026.

He emphasised that the future of work presents both unprecedented opportunities and significant challenges, urging organisations to embrace adaptability while placing people at the centre of transformation.

Building on the keynote, the conference featured a panel discussion titled “Shaping the Future of Work and Organisations,” moderated by AHRP Vice President and Hemas Holdings PLC Chief People Officer Ravi Jayasekara.

Shaping the future of work and organisations

The panel brought together SHRM Senior Advisor and Head – Leadership and HR Transformation Shaakun Khanna, LinkedIn Head of Enterprise Sales – South India, Sri Lanka and Maldives Guna Grace, BCG Managing Director and Partner Anushman Upadhaya and AIA Insurance Sri Lanka Director/CEO Chathuri Munaweera.

Speaking during the discussion, LinkedIn Head of Enterprise Sales – South India, Sri Lanka and Maldives Guna Grace described the current workplace transformation as the “Great Skills Reset.”

He noted that while only 25% of job skills changed between 2015 and 2025, nearly 70% are expected to change by 2030, signalling an unprecedented shift in workforce requirements.

Grace warned that organisations face an “invisible crisis,” with 86% of companies yet to fully prepare for the rapidly changing skills landscape.

He argued that tomorrow’s opportunities cannot be secured using today’s capabilities, stressing that workforce upskilling should become a business growth strategy rather than simply another learning and development budget item.

According to Grace, the traditional talent equation based on experience, qualifications and existing skills is rapidly becoming obsolete.

Instead, he said, future success will depend on the combination of AI capability, human capability and adaptability.

He explained that AI capability refers to an individual’s ability to effectively work alongside artificial intelligence, while human capability includes uniquely human strengths such as creativity, empathy, critical thinking, judgement and leadership. Adaptability, he added, is the willingness to continuously learn, unlearn and relearn as technology evolves.

Grace also observed that employers are increasingly assessing candidates based on their learning agility, problem-solving ability and capacity to embrace change rather than relying solely on past experience and academic qualifications.

BCG Managing Director and Partner Anushman Upadhaya said organisations must move beyond simply digitising existing processes and instead redesign their operating models to become AI-first enterprises.

He explained that many companies mistakenly equate digital transformation with adding technology to existing workflows, resulting in only incremental efficiency gains.

In contrast, AI-first organisations fundamentally redesign processes by enabling artificial intelligence to perform routine execution tasks while employees focus on higher-value responsibilities requiring judgement, innovation and oversight.

Using the example of a bank processing personal loans, Upadhyaya illustrated how AI can streamline operations by analysing existing customer information and completing credit assessments automatically, enabling faster and more personalised customer service.

He said organisations embracing AI-first operating models have the potential to achieve productivity improvements of up to 34 times, but stressed that such transformation depends as much on people as technology.

He noted technology accounts for only 30% of successful AI transformation, while the remaining 70% depends on leadership, organisational culture and governance and employee adoption.

Responding to concerns over employee resistance, he said successful AI transformation requires involving employees in redesigning workflows and assuring them that AI is intended to augment rather than replace their roles.

Drawing on a banking transformation project, he explained that productivity gains enabled employees to process significantly more work, allowing the organisation to increase business targets rather than reduce headcount.

“The most successful AI transformations are those where people are genuinely involved in shaping new ways of working,” he said.

SHRM Senior Advisor and Head – Leadership and HR Transformation Shaakun Khanna emphasised that while AI is transforming organisations, the greatest challenge lies not in technology but in people.

He said AI has democratised access to advanced technologies, making powerful tools available to organisations of every size. However, successful transformation depends on leaders redesigning organisational structures, investing in workforce upskilling, fostering an AI-enabled culture and establishing strong governance frameworks.

Khanna stressed that organisations would fail to realise returns on AI investments if employees do not fully adopt new technologies.

He also urged organisations to move beyond competency-based talent models towards skills-based organisations, where recruitment, learning, career progression, performance management and rewards are centred on skills rather than qualifications alone.

Noting that 81% of organisations recognise the need for this transition, he said only a small proportion have successfully implemented it because it requires redesigning the entire employee lifecycle rather than simply introducing new policies.

AIA Insurance Sri Lanka Director/CEO Chathuri Munaweera said organisations of the future will be defined not by their size but by their ability to foster continuous learning, adaptability and innovation.

Drawing on AIA’s AI transformation journey, she said Sri Lanka’s competitive advantage lies in its resilient and agile workforce, adding that organisations should leverage these strengths while embracing artificial intelligence.

Munaweera acknowledged that one of the biggest challenges is overcoming employees’ fear that AI will replace their jobs. “AI will not replace employees, but employees who are good at AI will replace those who are not,” she said, stressing the importance of reskilling employees and building confidence throughout the transformation journey.

She also highlighted the need for strong digital foundations-including robust systems, reliable data and well-designed processes-before organisations can successfully implement AI.

Describing AI transformation as fundamentally a leadership challenge, Munaweera said HR plays a pivotal role in redesigning organisations, supporting leaders and guiding employees through change.

Reflecting on AIA’s own experience, she acknowledged that while AI transformation is essential, “it is easier said than done.”

Concluding the discussion, AHRP Vice President Hemas Holdings PLC Chief People Officer Ravi Jayasekara said the future of work will not be defined by artificial intelligence alone but by how effectively organisations design collaboration between people and technology.

He said organisations that deliberately create environments where humans and AI complement one another will enjoy a lasting competitive advantage, with HR professionals uniquely positioned to lead this transformation through future-ready operating models centred on people, culture and technology.

Reflecting on AHRP’s Silver Jubilee, Jayasekera said the anniversary was not merely a celebration of the association’s achievements over the past 25 years but the beginning of its next chapter.

“The future of work is about humans working with AI and AI working with humans. How deliberately we design that relationship will set organisations apart,” he said.

He said the decisions organisations make today will determine how successfully Sri Lanka’s workforce adapts to the future, reaffirming AHRP’s commitment to supporting HR professionals and business leaders in building resilient, innovative and future-ready organisations.