Category: Daily Financial Times

This reflects the readiness of the world’s second largest economy’s military and the priority its government places on national defence while pursuing broader development goals. On the occasion of the 99th Anniversary of the founding of People’s Liberation Army (PLA) of China, which falls on 1 August, the Embassy of China in Sri Lanka held a commemorative celebration on the evening of 21 July 2026.

On 1 August 1927, the Communist Party of China (CPC) launched an uprising against the Nationalist Party of China (KMT) in Nanchang, the capital of Jiangxi Province. The Nanchang uprising marked the birth of the CPC’s armed wing and the beginning of the party’s independent command over military operations. In the years leading up to President Xi Jinping’s rise to power, the Chinese military underwent a significant transformation, achieving rapid advancements that strengthened its overall capabilities.

When President Xi Jinping came to power, a new phase of military development began, marked by a stronger emphasis on modernisation and strategic reforms. At the 12th National Congress in 2013, President Xi Jinping described his security outlook, noting that ‘the stronger we get, the larger the obstacles and pressure will be. The more external dangers there will be. This is the reality we cannot escape as China gets stronger’ .

Compared with his predecessors, President Xi Jinping has taken a far more hands on approach to military affairs, dedicating significantly more time and efforts to defence issues. With that commitment, the country continues to strengthen its capacity to safeguard national sovereignty, security, and development interests. To meet the demands of a military modernisation with Chinese characteristics, the government has maintained a gradual increase in defence spending, ensuring that advancements in national defence keep pace with China’s broader economic and social development. Consequently, China boasts the world’s largest navy, holding a higher number of operational warships compared to the USA, as per recent data.

President Xi Jinping

Un

der the national budget, China’s defence allocation for 2026 has been set at ~$281 billion, reflecting a 6.9% increase from the previous year. Defence budget growth has held steady at around 7% annually since 2023, continuing a long term upward trajectory that has seen military spending rise sharply from ~$132 billion in 2014. Increased defence spending is being directed towards advancing the integrated development of mechanisation, strengthening the joint operating system, and accelerating the growth of new domain, high quality combat capabilities. It will also support the modernisation of military logistics, the rapid development of advanced weaponry and defence science, and the enhancement of military training, personal policies, and professional education at academics to cultivate a new generation of highly skilled military talent.

What does it mean for Sri Lanka?

As long standing friends, Sri Lanka and China, having formally established diplomatic relations in 1957, have consistently supported each other on matters involving core interests and key national concerns. Defence and security are such key areas where Sri Lanka can further deepen its cooperation with China, further strengthening the capabilities of the Sri Lankan armed forces.

The foundation stone laying ceremony for the Northern Anuradhapura Water Supply Project Phase II, was held in the esteemed presence President Anura Kumara Dissanayake, Housing, Construction and Water Supply Minister Susil Ranasinghe, Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, North Central Province Governor Wasantha Jinadasa, Japan Embassy Chargé d’Affaires ad interim KAMOSHIDA Naoaki, JICA Sri Lanka Office Chief Representative KURONUMA Kenji.

This project is funded by a concessional loan from Japan worth approximately JPY 23 billion (equivalent to approximately $ 143 million at the current exchange rate). It aims to provide a stable supply of safe drinking water to approximately 67,000 households in the Anuradhapura District, where communities have long suffered from chronic fluorosis and kidney disease. With the completion of this Phase 2, the project will collectively deliver safe water access to over 75,000 households when combined with the already-completed Phase 1. This project will also provide an essential foundation for agricultural and industrial development in the region while contributing to an improved quality of life for local residents.

In his remarks, KAMOSHIDA expressed his heartfelt congratulations on the foundation stone laying of this important project. He also conveyed his deep appreciation to H.E. President Dissanayake for gracing the occasion and to all those involved in the implementation of the project for their tireless efforts to achieve this milestone despite unprecedented challenges posed by the COVID-19 pandemic and Sri Lanka’s economic crisis.

He further emphasised that this Project carries symbolic significance for Sri Lanka’s recovery from the recent economic crisis and that Japan continues to be a steadfast partner in promoting development and improving people’s standard of living in the country.

The Environment Ministry together with the United Nations Development Programme (UNDP) in Sri Lanka, officially handed over advanced laboratory equipment valued at approximately Rs. 204 million (est. $ 663,000) to key national institutions recently.

This was under the Global Environment Facility (GEF)-funded project, Integrated Management and Environmentally Sound Disposal of Persistent Organic Pollutants (POPs) Pesticides in the Agricultural Sector and Mercury and Waste in the Healthcare Sector in Sri Lanka.

The ceremony brought together senior government officials, technical institutions, development partners, and stakeholders.

The equipment was officially handed over to six beneficiary institutions: the Central Environmental Authority, University of Sabaragamuwa Sri Lanka, Department of Agriculture, Sri Lanka Customs, Consumer Affairs Authority and Government Analyst’s Department. The handover was accompanied by the signing of Memoranda of Understanding (MoUs) and a presentation on mechanisms to ensure the long-term technical and financial sustainability of the equipment.

The state-of-the-art analytical instruments, laboratory support equipment, consumables, and chemicals will significantly strengthen Sri Lanka’s ability to detect, analyse, monitor, and regulate hazardous substances, including mercury, Persistent Organic Pollutants (POPs), and other chemicals of concern. The investment is expected to enhance regulatory oversight across the lifecycle of chemicals, from import and border control to market surveillance, environmental monitoring, and scientific research.

Environment Deputy Minister Anton Jayakody underscored the national significance of the initiative. ”With the update of the National Environmental Act, Sri Lanka is committed to ensuring the environmentally sound management of hazardous chemicals and waste. The equipment handed over will strengthen the scientific and regulatory capabilities of institutions that play a critical role in protecting public health, and preserving our natural environment. This investment will deliver lasting benefits for the country and reinforce our journey towards a greener and more resilient future.’

Environment Secretary K.R. Uduwawala emphasised the importance of strengthening institutional capacities to safeguard human health and the environment. ”Sri Lanka is a Party to the Basel, Rotterdam, Stockholm, and Minamata Conventions. As the National Focal Point for the Basel, Stockholm, and Minamata Conventions, the Ministry of Environment has a responsibility to ensure that the country fulfills its obligations under these multilateral environmental agreements and our foremost obligation is to safeguard human health and the environment from the adverse impacts of hazardous chemicals and wastes”

UNDP Sri Lanka Officer in Charge Marina Ten said: ‘This handover is about far more than the delivery of equipment. It is about empowering national institutions with the tools, knowledge, and systems required to protect communities and ecosystems from the harmful impacts of hazardous chemicals. Through this partnership with the Ministry of Environment and the support of the Global Environment Facility, we are helping Sri Lanka strengthen its capacity to meet global environmental commitments while advancing sustainable development priorities.’

The project is being implemented by the Ministry of Environment under the National Implementation Modality, with technical support from UNDP Sri Lanka and funding from the Global Environment Facility (GEF). With a total budget of $5.04 million, the project seeks to strengthen Sri Lanka’s chemicals and waste management framework, enhance institutional capacities, establish a centralised chemicals database, promote green procurement and financing mechanisms, and support compliance with the Stockholm Convention on Persistent Organic Pollutants and the Minamata Convention on Mercury.

The equipment procurement was undertaken through a transparent and competitive international bidding process and is complemented by a sustainability mechanism that promotes shared use of equipment, cross-agency collaboration, and long-term maintenance arrangements. These measures are expected to maximise the value of the investment and ensure its continued contribution to national environmental management efforts.

As Sri Lanka continues to address emerging environmental challenges, the strengthened laboratory infrastructure will play a vital role in supporting research, enforcement, monitoring, and policymaking to protect both people and the environment from the risks posed by hazardous chemicals and waste.

The Geoffrey Bawa Trust has announce that this year’s Memorial Lecture will be delivered by the renowned architect Junya Ishigami on Thursday, 23 July at 6:30 p.m. at the Sri Lanka Foundation Institute, Colombo 07.

Presented annually to mark Geoffrey Bawa’s birthday, the lecture celebrates influential architectural ideas and practitioners from around the world.

Founder of the junya.ishigami+associates architectural firm, Ishigami is known for his large-scale projects that entwine the organic and the built. Ishigami completed a Master’s Degree at the Department of Architecture at Tokyo University of the Arts and worked for the renowned architectural firm Kazuyo Sejima and Associates before founding his own practice in 2024.

Ishigami’s architectural designs dissolve the boundary between the built structure and its surroundings. The completed projects are not merely buildings but interactions between structure, matter, atmospheric conditions, and time. They are frameworks where material processes, climate, and environmental dynamics shape the formation and inhabitation of space.

Ishigami has been honored with several prestigious awards, including the Architectural Institute of Japan Prize (2009), the Golden Lion award for the best project at the 12th International Architecture Exhibition – La Biennale di Venezia (2010), the Mainichi Design Award (2010), the Minister of Education, Culture, Sports, Science and Technology’s Art Encouragement Prize for New Artists (of fine arts), the OBEL Award by the Henrik Frode Obel Foundation (2019), the Frederick Kiesler Prize for Architecture and the Arts (2024) and the Architectural Institute of Japan Prize (2024). He was elected an Honorary Fellow of the American Institute of Architects (2025) and received the Arnold W. Brunner Memorial Prize (2026).

Admission to the event is free, but registration is required. For registration and more information, visit: geoffreybawa.com/events. The Geoffrey Bawa Memorial Lecture is supported by Lanka Tiles.

Prime Lands Residencies PLC has earned international recognition by winning the Silver Award for Best Use of Account-Based Marketing at the prestigious Hashtag Asia Awards 2026, held on 10 July 2026 at the Sofitel Singapore City Centre, Singapore, for its campaign, “Prime 365: Always-On. Always Ahead.”

The award marks a significant milestone for Prime Residencies and reinforces the company’s position as one of Sri Lanka’s leading real estate brands embracing innovation, customer-centricity, and digital excellence. It also highlights the ability of a Sri Lankan real estate developer to compete successfully on an international stage through insight-led strategy and data-driven marketing.

In the highly competitive category, the Gold Award was presented to an entry from Hong Kong, while the Bronze Award went to an entry from Singapore, placing Prime Residencies among an elite group of regional marketing leaders. The recognition reflects the company’s ability to compete successfully against some of Asia’s strongest digital marketing campaigns through innovation, customer-centric strategy, and data-driven execution.

More than recognizing a single campaign, the award celebrates Prime Residencies’ long-term digital marketing philosophy. Through its “always-on” approach, the company remains consistently connected with customers by delivering personalized, relevant, and timely communication throughout every stage of the property-buying journey, rather than limiting engagement to project launches or promotional campaigns.

The award-winning campaign combines advanced audience segmentation, performance marketing, marketing automation, content strategy, and data-driven insights to create highly personalized and relevant customer experiences across digital platforms, ensuring every customer interaction is timely, meaningful, and valuable.

For customers, this translates into receiving relevant information when it matters most. Whether they are purchasing their first home, seeking an investment opportunity, or searching for their ideal residence, Prime Residencies is committed to providing valuable market insights, property recommendations, and helpful information that enable customers to make informed decisions with confidence.

Behind every digital campaign is a carefully planned strategy driven by customer behavior, market intelligence, and performance analytics. Every communication is designed to reach the right audience through the right platform at the right time. By understanding customer preferences and delivering meaningful engagement instead of generic advertising, Prime Residencies continues to build long-term relationships founded on trust, transparency, and value.

Commenting on the achievement, Nalinda Heenatigala, Director Corporate Affairs for Prime Residencies said:

“Winning this award is a proud milestone for Prime Residencies. It reflects our commitment to placing customers at the center of everything we do. We believe effective marketing is not simply about promoting properties-it is about understanding customer needs, delivering relevant information, and helping people make confident investment decisions. This recognition inspires us to continue raising the standard of digital innovation and customer experience in Sri Lanka’s real estate industry.”

Prime Lands Residencies PLC is a publicly listed real estate developer and a member of the Prime Group, one of Sri Lanka’s most established and respected property development groups. Celebrating over 30 years of excellence, the Prime Group has successfully completed more than 70 developments across Sri Lanka, earning a reputation for quality, credibility, and timely delivery.

As the residential development arm of the Prime Group, Prime Lands Residencies PLC develops thoughtfully designed homes and apartments that deliver lasting value to homeowners and investors. The company also offers an exclusive portfolio of ultra-luxury residences under The One Collection, reflecting its commitment to exceptional design, premium quality, and elevated urban living.

Prime Residencies extends its sincere appreciation to its employees, customers, business partners, and everyone who contributed to this international achievement.

The Silver Award at the Hashtag Asia Awards 2026 represents another milestone in Prime Residencies’ journey of excellence, reinforcing its vision of creating exceptional living spaces while setting new benchmarks in customer engagement, digital innovation, and real estate marketing.

Sri Lanka’s credit recovery is facing its first major test as higher interest rates begin to filter through the economy, with KPMG warning that future lending momentum will determine whether the post-crisis expansion can sustain its pace even as external balances are set to improve.

In its July 2026 Sri Lanka Macroeconomic Outlook, the professional services firm said forthcoming credit data will be a key indicator of the economy’s underlying strength after the Central Bank’s 100 basis point policy rate increase in May, noting that private sector credit-to-GDP remains below pre-crisis levels despite the sharp recovery in lending over the past year.

The assessment points to a transition in Sri Lanka’s recovery from one supported by abundant liquidity and lower interest rates to one where sustained private sector borrowing will increasingly determine the pace of economic activity.

The economy expanded by 5.1% in the first quarter, supported by benign inflation, lower interest rates during the period and ample liquidity, while all three major sectors recorded positive growth. Industry grew 7.2%, Services expanded 3.4% and Agriculture increased 1.1%, underscoring the broad-based nature of the recovery despite lingering external headwinds.

Private sector credit, widely regarded as a leading indicator of future economic activity, increased by Rs. 485.4 billion during the first quarter, 24% above the level recorded a year earlier. Lending accelerated further in May, rising 79.1% year-on-year, with KPMG suggesting borrowers may have advanced financing decisions ahead of the Central Bank’s rate increase on 26 May.

However, the report said the recent pace of credit expansion also heightened the risk of second-round inflation after higher global energy prices triggered by the Middle East conflict fed through to domestic fuel and energy prices.

That prompted the Central Bank to raise the Overnight Policy Rate to 8.75%, its first increase in 38 months, to contain inflation expectations, moderate demand and support exchange rate stability. The policy shift has already tightened domestic financial conditions, with Treasury bill yields moving higher and overnight liquidity declining to Rs. 82.6 billion in June from Rs. 333.7 billion in February, indicating effective monetary policy transmission.

KPMG expects the tighter monetary environment to moderate private sector credit growth in the coming quarters, while reducing pressure on imports and helping rebalance the external sector. The report also noted that lending rates have already begun adjusting upwards following the May policy action.

The current account slipped back into deficit during the first quarter as higher fuel and vehicle imports and slower growth in tourism earnings offset resilient remittance inflows. Fuel and vehicle imports rose to $ 1.8 billion from $ 1.2 billion in the corresponding period last year, while workers’ remittances increased 26.5% year-on-year to $ 2.3 billion, continuing to provide an important buffer to external balances.

Looking ahead, KPMG expects lower crude oil prices, tighter financial conditions and the unwinding of earlier front-loaded imports to moderate fuel and vehicle imports. Together with resilient remittances and continued, albeit moderating, tourism earnings, these developments are expected to support a return to a current account surplus in June, although renewed geopolitical tensions remain the principal risk to that outlook.

The report said the recovery continues to be underpinned by improving public finances. Tax revenue increased 36.4% year-on-year during the first quarter, supported by the resumption of vehicle import-related taxes, which accounted for nearly one-fifth of total collections, and stronger indirect tax revenue amid improving nominal economic activity.

Despite a 16.3% increase in recurrent expenditure excluding interest payments, stronger revenue enabled the Government to record a primary surplus equivalent to 7.7% of GDP and an overall fiscal surplus of Rs. 116.4 billion in the first quarter. KPMG noted that subsequent Treasury data showed fiscal consolidation continuing into the second quarter, with the overall budget balance improving to a surplus of Rs. 197.3 billion during January to May from a deficit of Rs. 236.6 billion a year earlier.

Beyond the macroeconomic indicators, KPMG said underlying economic activity has remained resilient. Manufacturing and construction purchasing managers’ indices both returned to expansionary territory in May, while cement production increased 21.5% year-on-year during the first five months, suggesting domestic investment activity has remained firm despite rising geopolitical uncertainty.

Sir Garfield Sobers, the great West Indies cricketer widely regarded as the finest all-rounder in the sport’s history, has died aged 89. His passing at his home in Barbados only 11 days shy of his 90th birthday was announced by Cricket West Indies on Friday, with the simple line: ‘A great innings has come to an end. In our hearts, now and forever, Sir Garfield Sobers.’

Sobers was the first batter to hit six sixes in an over when playing for Nottinghamshire at Glamorgan’s St Helen’s ground in Swansea in 1968. But it was just one of many feats in an illustrious career that saw him play 93 Test matches for West Indies – including 39 as captain – from 1954 to 1974.

From a humble background, Sobers made his Test debut for West Indies aged 17 in 1954 against Len Hutton’s England at Sabina Park in Jamaica.

His maiden Test century against Pakistan at the same ground in 1958 secured his place in history early: an unbeaten 365 that set the record for the highest individual Test score. It stood for 36 years until Brian Lara’s 375 against England in Antigua broke it in 1994, with Sobers at the ground to congratulate him.

Overall, the left-handed Sobers scored 8,032 Test runs at an average of 57.78 – the fourth-highest average in history among players with over 5,000 runs – and took 235 wickets at 34.03. In 383 first-class matches, he scored more than 28,000 runs and took more than 1,000 wickets, including time with South Australia and Nottinghamshire.

With the objective of strengthening the cooperation between Myanmar and Sri Lanka in gemstones, jewellery, tourism, and investment, the Chief Executive Officer and Gemologist of the Nojili Group of Companies in Sri Lanka and Japan, L.A.D. Palitha has successfully completed a business development visit to Myanmar from 11-17 June 2026.

The Embassy of Sri Lanka in Yangon facilitated this visit.

The Nojili Group of Companies is active in the international gemstone and jewellery trade, as well as eco-tourism development, with operations in Sri Lanka and Japan. During the visit, CEO Palitha undertook an in-depth study of Myanmar’s gem industry and explored opportunities for future collaboration between the two countries, in the respective subject area.

As part of the program, CEO Palitha visited several important gem and jewellery-related institutions in Yangon, including Scott Market (Bogyoke Aung San Market), gemstone trading centres, and gem and jewellery museums and laboratories. He also held successful business-to-business meetings with leading industry stakeholders, including Gemro Jewellery, Yangon Managing Director Khine Zin Win. These engagements provided valuable insight into Myanmar’s gemstone heritage, industry practices, and potential partnership opportunities.

A major highlight of the visit was CEO Palitha’s participation in the UMTA Travel Fair – 2026, one of Myanmar’s leading international tourism exhibitions, held from 12-15 June 2026 at the Chatrium Hotel and Sedona Hotel in Yangon. The event was organised by the Yangon Regional Government in collaboration with the Union of Myanmar Travel Association (UMTA).

During the fair, CEO Palitha met with UMTA Chairman and President Kyaw Bhone Naing, along with tourism leaders, travel operators, investors, and business representatives from Myanmar and abroad. Discussions focused on strengthening tourism cooperation between Sri Lanka and Myanmar, particularly in eco-tourism, cultural tourism, heritage tourism, and outbound travel markets.

CEO Palitha also developed productive relations with UMTA and Myanmar Tourism Marketing (MTM), with talks centred on tourism promotion, visitor exchange, joint marketing, and long-term business partnerships.

Under the instructions of the Ambassador of Sri Lanka to Myanmar, Prabashini Ponnamperuma, the visit was coordinated by Minister of the Embassy of Sri Lanka in Myanmar, Lal Kularathna. The Embassy of Sri Lanka in Yangon welcomed the successful outcome of the visit and noted that such engagements help deepen people-to-people ties and expand economic cooperation between Myanmar and Sri Lanka.

One of Sri Lanka’s oldest and most treasured schools rugby rivalries will once again take centre stage when Kingswood College host Wesley College in the 40th Blazé Trophy encounter at Nittawela Rugby Stadium today.

Kick-off is at 4 p.m.

The First XV encounter will be played for the Blazé Trophy, while the junior games will be worked off for the P.H. Nonis Trophy (Under-12), N.J. Mudanayake Trophy (Under-14), Shelton Wirasinghe Shield (Under-16) and the Kenneth de Lanerolle Trophy (Second XV).

The Blazé Trophy, first played in 1986, commemorates Louis Edmond Blazé, the visionary founder of Kingswood College and the man universally recognised as the Father of Sri Lanka Rugby.

Defending champions Wesley College will be chasing history by securing a fifth successive Blazé Trophy triumph. Under the guidance of current national forwards coach Terrence Henry, the Double Blues enjoyed another competitive season, finishing sixth in the Dialog Schools Rugby League before advancing to the semi-finals of the President’s Trophy Knockout Tournament.

Wesley will once again rely on the leadership of centre Kaizer Lye, whose attacking flair and defensive strength have made him one of the standout players this season. He will be supported by an experienced group that includes hard-working flanker Liam Onasis, powerful hooker Keshara Rahul and speedy winger Prarthana Rodrigo, giving the visitors quality in both the forwards and the three-quarter line.

Kingswood College, meanwhile, will be determined to reclaim the trophy in front of their passionate home supporters. The Randles Hill outfit will be captained by Sachithra Naveesha, while flankers Chanidu Adikari and Menusha Marasinghe are expected to spearhead the forward challenge. Familiarity with the Nittawela conditions could prove a significant advantage as the hosts attempt to halt Wesley’s remarkable winning streak.

Veteran referee Ishanka Abeykoon will officiate the main encounter.

Indian music sensation Aditya Narayan and Sri Lankan superstar Sanka Dineth will unite for a series of landmark live concerts starting August 2026.

This milestone collaboration marks the first time an international musical partnership of this magnitude has been forged between Sri Lanka and Japan, bringing together two celebrated artists to deliver a spectacular live concert experience that transcends cultural and geographical boundaries. The tour is a proud testament to the power of music as a universal language, designed to captivate audiences across two continents and forge lasting connections between the rich artistic traditions of South Asia and East Asia.

Sri Lanka Concert will be on 1 August 2026 at Havelock Grounds, Colombo (Presented by Salon Mybride) and Japan Concert will be on 16 August 2026 at Kashiwa Civic Cultural Hall, Japan (Organised by Japan Events).

Bringing this extraordinary vision to life is a collaborative effort across dedicated teams in Sri Lanka and Japan. Overall production coordination for the international tour is supported by Sound Vision Event Management, a Sri Lanka-based production company with a strong track record in delivering large-scale entertainment experiences across the region.

Cinnamon Life at City of Dreams serves as the Hospitality Partner for this landmark occasion, ensuring a world-class experience for all attendees. This historic collaboration is set to create a defining new milestone in international entertainment, strengthening cultural, artistic, and musical ties between Sri Lanka, India, and Japan, while opening a new chapter in cross-border musical partnerships for the region.