Category: Daily Financial Times

DMS Software Engineering Ltd. (DMS) has announced the successful implementation of its flagship DMS-IMAGO platform at HSBC Sri Lanka, marking another milestone in the company’s journey as a trusted provider of enterprise-grade banking technology solutions.

The implementation further reinforces DMS’ growing reputation as a fintech partner capable of delivering scalable, future-ready infrastructure to global financial institutions.

Director/General Manager Baheerathan Thillaiampalam said: “The successful implementation of DMS-IMAGO at HSBC Sri Lanka reflects the confidence global banking institutions place in our technology and engineering capabilities. We remain committed to developing secure, future-ready banking solutions that help financial institutions improve efficiency, strengthen compliance, and prepare for the evolving demands of modern banking.”

Developed as a comprehensive Cheque Image Clearing Solutions, DMS-IMAGO is designed to streamline and modernise cheque processing and clearing operations. The platform digitises and automates the entire cheque clearing lifecycle, transforming traditional paper-based workflows into a secure, image-driven digital process that enables banks to improve operational efficiency, strengthen compliance, reduce manual intervention, and enhance processing accuracy within highly regulated banking environments.

DMS-IMAGO provides end-to-end functionality across inward and outward clearing, inward and outward returns, postdated cheque processing, and transfer cheque management. Supporting both LKR and USD clearing operations, the platform can operate within centralised, decentralised, or hybrid banking environments depending on operational requirements.

Within the inward clearing cycle, the system downloads cheque images and clearing data received from the Clearing House, segregates images based on predefined criteria, and enables image scrutiny and signature verification to identify technical returns. Through direct integration with Core Banking Systems (CBS), the solution validates accounts, identifies fund-based returns, and generates outward return submissions while automated validations, duplicate detection mechanisms, repair workflows, maker-checker controls, and structured authorisation processes help reduce operational risk and processing delays.

Within the outward clearing cycle, the platform captures cheque images through image-clearing devices, extracts MICR data, generates clearing files in the required formats, and facilitates secure electronic transmission to the Clearing House. The system also reconciles inward return information against outward clearing data, improving visibility and operational control across time-sensitive clearing operations aligned with T+1 and LankaClear compliance requirements.

Through the implementation of the IMAGO Cheque Imaging and Truncation System at HSBC , cheques were digitised at source, maker-checker controls were enforced, automated validations and duplicate detection mechanisms were activated, workflows were centralised, and comprehensive audit trails were established. The COO of HSBC has stated that, “This transformation enabled HSBC Sri Lanka to improve processing accuracy, reduce operational risk and turnaround time, strengthen compliance, and establish a scalable, future-ready clearing environment aligned with evolving regulatory and business requirements.”

The platform’s Postdated Cheque (PDC) Module enables banks to warehouse and manage postdated cheques with facilities to advance, delay, or hold value dates until dispatch, while its Transfer Cheque Module supports on-us cheque processing with full authorisation and audit capabilities without routing transactions through the Clearing House.

Built on a secure three-tier .NET architecture and deployed as a Windows MS ClickOnce application, DMS-IMAGO enables simplified deployment, centralised control, automatic version updates, rollback capabilities, and secure isolated installations without requiring administrator privileges on end-user devices. The solution also integrates seamlessly with signature verification systems and third-party banking applications, strengthening automation, compliance, and risk management across banking operations.

Since its introduction in 2005, DMS-IMAGO has been successfully deployed across multiple banks in Sri Lanka and Bangladesh, demonstrating its maturity, scalability, and reliability. Backed by over four decades of domain expertise in banking technology, DMS continues to deliver intelligent, enterprise-grade solutions that support the future of financial services and empower banks to operate with greater agility, resilience, and confidence.

The Cabinet of Ministers has approved the implementation of a German-funded program worth pound 924,063 (around Rs. 314 million) to promote energy-efficient and climate-resilient buildings in Sri Lanka.

A brilliant all-round performance across all age groups, both in track and field events, secured St. Benedict’s College the Overall Boys’ Championship with 174 points, a massive lead of 92 points over the second placed St. Peter’s College, at the Sugathadasa Stadium last week. It’s an incredible achievement, given that a whole host of schools traditionally strong in Athletics, were competing in this Championship. Over a gruelling five days of competition, Benedictines won 21 Gold medals, 14 Silver medals and 12 Bronze medals.

Gold medals were won by the following athletes:

Under-20

Kalana Jayamanne –

800 metres, 1500 metres

Sasindu Jayasinghe –

Triple Jump

Tharusha Mendis –

High Jump

Yashen Pieris – Pole Vault, 4 × 400 meters Relay, 4 × 100 meters Relay

Under-18

Pahasara Gunetunge –

400 metres, 800 metres, 1500 metres

Y. Thulastigen – Shot Putt

Ashane Lasinda – Pole Vault

Sadew Dahamsa – Triple Jump, 4 × 100 metres Relay, 4 × 400 metres Relay

Under-16

Sinura Salgado – 800 metres

Kaveen Amodya – Discus Throw (New Meet Record), Shot Putt

Dilash Anujaya – 300 metres Hurdles, 4 × 100 metres Relay (New Meet Record), 4 × 400 metres Relay (New Meet Record)

This historic achievement is testament to the hard work and perseverance of the talented athletes and the dedication and committment of the brilliant Coaching and Support Staff let by the dynamic MIC/Head Coach Nuwan Abeywickrema and the steadfast support of the School Management and Old Benedictine Fraternities in Sri Lanka and Overseas. It’s significant that two Benedictine Athletes, Sasindu Jayasinghe (Triple Jump) and Tharusha Mendis (High Jump) have been selected to represent Sri Lanka at the World Junior Athletics Championship in the United States of America next month.

Paddy farming is not just an economic vocation. It forms a cornerstone of the nation’s civilisation as well as the rural way of living. Painstaking efforts of paddy farmers ensure the availability of rice – the staple diet of islanders. Regrettably, famers who toil hard to produce the staple diet of Sri Lankans frequently lament over numerous misgivings. Often, the grumble is that they do not get a fair price which covers production costs. Or else, they express anger over not being able to find the required quantity of fertiliser for cultivation at the appropriate time.

Almost every prime-time news bulletin over the last month or so has been dominated by the plight of paddy farmers who vociferously claim that millers are offering them a pittance for their harvest. Farmers allege that mill owners are demanding to buy their stocks at Rs. 80 to Rs. 90/kg. The Government had conveyed its intention to purchase Nadu at Rs. 120/kg, Samba at Rs. 130/kg, and Keeri Samba at Rs. 140/kg under the guaranteed price scheme. However, farmers are demanding a guaranteed purchase price of Rs. 140 to Rs. 150 per kilogram to cover the rising costs of fertiliser, agrochemicals, and expenses.

The agitation of paddy farmers across the island has turned into a nasty confrontation with the Government. Some Government ministers have even gone to the extent of terming those who demand higher guaranteed paddy prices as kassipukarayas while Agriculture Minister K.D. Lalkantha has warned paddy farmers not to think too highly of them, as they receive assistance from the Government to purchase fertiliser and obtain water from the irrigation system.

Representing a great irony, the JVP/NPP politicians passionately advocated the cause of paddy farmers while in the Opposition and often chanted the revered Sinhalese proverb – “a paddy farmer is fit to be a king once washed of mud” – to reiterate the romanticism associated with paddy farming in the minds of Sri Lankans. JVP stalwarts in the calibre of Agriculture Deputy Minister

Namal Karunaratne promised a glorious era for paddy farmers under an NPP-led Government apart from assuring unprecedented assistance at every stage of the paddy value chain. In a strange twist of fate, Karunaratne, who was well noted for championing the demands of farmer communities during his days in the Opposition has now earned the wrath of paddy farmers for betraying their trust.

Trade Minister Wasantha Samarasinghe, who too hails from the paddy farming-heavy Anuradhapura District, has also come under spotlight over rice imports that some allege have depressed paddy prices. According to analysts, the large influx of imported rice to the domestic market ahead of the Yala harvesting season has created a highly unfavourable situation for paddy farmers. It is reported that following a temporary relaxation of import restriction by the Trade Ministry, over 156,000 metric tons of Ponni Samba together with shipments of Basmati and other varieties had entered the domestic market just before the Yala harvest was reaped. As a result, wholesale rice prices have dropped to around Rs. 150-155/kg, denting the bargaining power of paddy farmers.

For decades, Sri Lanka’s rice market has been characterised by a small group of large-scale private millers holding dominant control, which has frustrated both consumers and farmers. It is alleged that these powerful millers look after the needs of political decision-makers of successive Governments. The Paddy Marketing Board – an archaic, outdated Government entity – can barely stand against the powerful cartel.

Paddy farming, for too long, has been viewed from a political perspective. If paddy farming is not financially viable, farmers must be given the freedom of choice to pivot to other lucrative crops without being constrained by irrational pieces of legislation. Getting emotionally attached to a crop due to political narratives and cultural reasons serves neither the well-being of farmers nor the broader interest of the national economy.

Sampath Bank registered their second win in two outings to lead the league stage of the MCA Champions league 2026 powered by HONOUR by defeating Abans Group by 76 runs at the MCA ground on Wednesday.

Electing to bat first Sampath Bank recovered from a precarious 64/5 in the 22nd over to reach a respectable 217/8 in their 50 overs. No 6 batsman Dulaj Ashen (83* off 89 balls) and No 7 batsman Abhishek Anandakuamar (44 off 63 balls) shared a 85 run partnership to steady the innings.

In the chase Abans group lost both openers in the first over of the game and were also 65/5 in the 18th over but were unable to recover and were bowled out for 141. Dumindu Sewmina was the pick of the Sampath Bank bowlers with 3/55.

Scores

Sampath Bank 217/8 in 50 overs [Dulaj Ashen 83*, Abhishek Anandakumara 44; Nilanka Premarathna 4-48, Sudara Dakshina 2-45

Abans Group 141/10 in 31.5 overs [Akeel Inham 32, Mihiranga Fernando 29; Dumindu Sewmina 3-55

Worldlink Shipping Colombo Managing Director Vera Wickramasinghe has been elected President of the Freight Forwarder Network (FFN) – Netherlands at the network’s Annual General Meeting (AGM) in Barcelona, Spain, marking a landmark achievement for Sri Lanka’s logistics and freight forwarding sector.

While having served on the Board of Directors, she was elected to the Presidency this year. Her election is a historic first for the Network, as she became both its first female President and its first President from outside Europe and the US, ending an unbroken succession of Presidents from those regions.

A respected leader in the international shipping and logistics industry, Wickramasinghe brings decades of experience, expertise, and visionary leadership to her new role.

Established in 2011, the FFN is a globally recognised logistics network dedicated to fostering collaboration and building strong international partnerships. The network comprises members from across 48 countries and is known for its emphasis on reliability, financial transparency, and professional standards within the global freight forwarding sector.

As President of the FFN, Wickramasinghe will work closely with members worldwide to strengthen collaboration, promote industry best practices, support the continued growth of the global freight forwarding community, and drive the strategic expansion of the Network’s global membership.

In another milestone for Sri Lanka, members of the FFN selected Colombo as the host city for the Network’s 15th AGM in 2025, which was held at ITC Ratnadipa. The event brought together logistics and supply chain professionals from around the world, further enhancing Sri Lanka’s profile as a regional logistics hub.

Her appointment represents a proud milestone for Worldlink Shipping Colombo and the broader Sri Lankan logistics industry, highlighting the increasing international recognition of Sri Lankan professionals and their contributions to global trade and supply chain management.

As the Founder and Owner of Worldlink Shipping Colombo, Wickramasinghe has been instrumental in expanding the company’s global logistics footprint and strengthening its reputation as a trusted industry partner. In recognition of her outstanding entrepreneurial achievements, she was honoured with the WCIC Prathibhabhisheka Women Entrepreneur Award 2025, presented by the Women’s Chamber of Industry and Commerce (WCIC).

Ambeon Securities recently hosted an exclusive investor forum, bringing together clients, investors, business leaders, and market professionals for an insightful discussion on Sri Lanka’s economic outlook and investment opportunities amidst a challenging global landscape.

The event was organised with the objective of providing investors with valuable insights to make better-informed investment decisions while further strengthening the firm’s engagement with its growing client base.

The forum featured Citi Research Director and Chief Economist for Sri Lanka and India Baqar Zaidi, as the keynote speaker. Sharing his perspectives on the evolving global macroeconomic environment, Zaidi discussed key themes influencing emerging and frontier markets, Sri Lanka’s economic trajectory, and the opportunities lie ahead.

The keynote address was followed by an engaging panel discussion comprising Baqar Zaidi, respected investor, entrepreneur, and Arcasia Holdings Chairman Aravinda De Silva, Brandix Group Managing Director Hasitha Premaratne and LYNEAR Wealth Management CEO – Unit Trusts and Head of Equities Asanka Herath.

Moderated by Imran Furkan, the panel explored a range of topics including Sri Lanka’s macroeconomic outlook, the future of the Colombo Stock Exchange, sectoral opportunities, capital allocation strategies, investor confidence, and the role of policy reforms in attracting investment and supporting long-term growth.

Speaking at the event, Ambeon Securities CEO Charith Kamaladasa, reaffirmed the company’s commitment to facilitate quality insights, informed perspectives, and meaningful dialogue to support their clients while building lasting relationships with them. He noted that in an environment where uncertainty has become the new normal, equipping investors with timely information and expert perspectives is essential for successful wealth creation.

The event was well attended by a distinguished gathering of institutional investors, high-net-worth investors, and business leaders. Among those present were members of the Ambeon Group Board, including Group Chairman Sujeewa Mudalige, Group CEO Dr. Sajeeva Narangoda, and Ambeon Securities Chairman Mangala Boyagoda. Their presence, together with the participation of Ambeon Group shareholders and valued clients, enriched the discussions and contributed to a vibrant networking session, fostering meaningful dialogue and stronger connections within the investment community.

Ambeon Securities said through initiatives such as this it continues to reinforce its commitment to helping clients navigate evolving market conditions, make informed investment decisions, and achieve their long-term financial goals.

These high-profile appointments mark a significant milestone for the insurer as it actively scales its digital platforms and redefines its customer service architecture to achieve its long-term corporate vision. Bringing together an exceptional blend of multi-industry operational experience and deep financial sector expertise, the new directors are poised to provide vital strategic oversight.

Silva’s profound banking acumen, extensive experience in corporate governance, and expertise in macroeconomic stakeholder management are set to elevate the company’s financial strategy and regulatory framework. Simultaneously, De Zoysa’s pioneering background in customer experience (CX) and digital transformation leadership will serve as a critical catalyst for driving future-ready disruption across HNB General Insurance’s service channels. Together, their insights will significantly strengthen HNB General Insurance’s market position, helping steer the organisation toward its goal of becoming Sri Lanka’s most customer-centric general insurer while delivering sustainable stakeholder value.

Silva brings over three decades of financial governance and leadership expertise, following a distinguished career within the DFCC Banking Group. He served as the CEO of DFCC Vardhana Bank in 2010, later became the Deputy CEO of DFCC Bank PLC, and ultimately served as its CEO from 2017 until 2021. Throughout his career, Silva held several key governance roles, including serving as Chairman of key DFCC subsidiaries, namely DFCC Consulting Ltd., Lanka Industrial Estates Ltd., and Synapsys Ltd. He also served as Chairman of the Sri Lanka Banks’ Association, and Acuity Partners (Pvt) Ltd. Currently, he is the Chairman of LankaPay and Panasian Power PLC, serves as an Independent Director on the Boards of Seylan Bank PLC, Melstercorp PLC, Distilleries Lanka PLC, and HNB Life PLC as well as a member of the Stakeholder Engagement Committee of the Central Bank of Sri Lanka. A Past President of the Association of Professional Bankers, Silva holds a BCom (Sp.) from the University of Kelaniya and an MBA from the University of Sri Jayawardanapura.

De Zoysa is a globally recognised leader in customer experience (CX) and organisational transformation, with over three decades of experience in the ICT industry. As the Founder of CEx Consulting, she advises organisations on digital and CX strategy. During her 28-year tenure at Dialog Axiata PLC, she served as Group Chief Customer Officer, Managing Director of Dialog Business Services, and Chair of Axiata Berhad’s Digital CX Expert Working Group. She is the first executive in the Asia-Pacific region to hold a dedicated C-suite CX role. A founding Charter member of TiE Colombo and founding member and first Chairperson of SLASSCOM, De Zoysa continues to contribute to regional and global thought leadership as a member of the Customer Experience Professionals Association (CXPA) Asia Regional Leadership Council and Chairs the Sri Lanka Institute of Directors- Women Directors Forum. She is a Fellow of the British Computer Society (FBCS). She holds a Master’s in Digital Transformation Leadership, an Executive MBA, a Master’s in Human Resource Management, and is a Certified Scrum Master and Lean Six Sigma Black Belt; she is also the only Certified CX Professional (CCXP) and Training Provider for CXPA in Sri Lanka.

Twelve months ago, Softlogic Finance’s primary focus was stabilisation. Today, the company stands on a stronger foundation, with a clear strategy for sustainable growth and long-term value creation.

The past year has been one of transformation. Amid challenging market conditions and evolving customer expectations, Softlogic Finance has undertaken a disciplined turnaround strategy centered on strengthening capital, improving asset quality, enhancing governance, and rebuilding stakeholder confidence.

The results are beginning to emerge. For the financial year, the company recorded a profit of approximately Rs. 150 million, marking an important milestone in its recovery journey. More importantly, this performance reflects a sustainable business model built on prudent risk management and responsible growth.

Softlogic Finance today manages a total asset base exceeding Rs. 7.5 billion, supported by a lending portfolio of approximately Rs. 6.7 billion and a customer deposit base exceeding Rs. 3.8 billion. These figures reflect the growing confidence of customers and stakeholders in the company’s long-term direction and stability.

A key achievement during the year has been the strengthening of the company’s capital base. Softlogic Finance now maintains one of the highest Capital Adequacy Ratios in Sri Lanka’s finance industry at approximately 61%, significantly above regulatory requirements, while Core Capital has exceeded Rs. 2.8 billion.

“Our objective has never been short-term growth,” said Chief Executive Officer Dhanushka Fonseka. “Our focus has been on building a stronger and more resilient institution capable of delivering sustainable returns while maintaining disciplined risk management.”

The company’s growth strategy is anchored on its core financial solutions, including vehicle leasing, vehicle loans, gold loans, savings accounts, and fixed deposits. Particular emphasis has been placed on secured and asset-backed lending, ensuring that portfolio expansion is accompanied by strong credit quality.

This strategy has delivered encouraging outcomes. The new lending portfolio originated during the year continues to perform exceptionally well, with zero non-performing loans recorded to date, reflecting robust underwriting standards and disciplined credit evaluation processes.

With a network of 15 branches across Sri Lanka, Softlogic Finance remains committed to providing accessible financial solutions while enhancing customer experience through operational efficiency and technology-driven service improvements.

As a member of the Softlogic Group, the company benefits from the strength of one of Sri Lanka’s most diversified conglomerates. The Group’s interests span healthcare, insurance, hospitality, retail, and financial services, providing access to strong governance frameworks, industry expertise, and valuable strategic synergies.

Looking ahead, Softlogic Finance intends to build on the momentum achieved over the past year by further strengthening its balance sheet, expanding its high-quality lending portfolio, and pursuing sustainable growth opportunities.

Beyond financial performance, the company is also exploring a range of conservation-focused corporate social responsibility initiatives aimed at environmental preservation and biodiversity protection, reflecting its commitment to creating a positive impact beyond the financial sector.

“The foundations for future growth have been firmly established,” Fonseka added. “While there is still much to accomplish, we are encouraged by the progress achieved thus far and remain committed to building a stronger, more resilient Softlogic Finance for the benefit of our customers, employees, shareholders, and the wider Sri Lankan economy.”

Treasury officials on Tuesday (14) signalled that Sri Lanka’s next phase of International Monetary Fund (IMF)-backed fiscal reforms will shift from raising taxes to modernising tax administration, with officials revealing that a Medium-Term Revenue Strategy (MTRS) is being prepared to improve compliance, broaden the tax base, and support growth without increasing tax rates.

Appearing before the Parliamentary Committee on Public Finance (CoPF), Treasury officials said the strategy is being developed with IMF technical assistance following the completion of revenue-based fiscal consolidation, which substantially increased Government revenue through higher taxes, a broader tax base, and reduced exemptions.

Officials said the next stage of reforms would focus on improving tax administration and compliance, estimating that stronger administration alone could generate additional revenue equivalent to 1.9% of GDP.

“At present, we are going to prepare a MTRS. We had IMF technical assistance over the past few weeks and they have submitted a report after assessing the current tax system and proposing reforms that would be growth-friendly and help small and medium enterprises (SMEs). That’s our next step,” a senior Treasury official told the CoPF.

He acknowledged that Sri Lanka’s tax system continues to suffer from weak compliance despite the higher tax effort.

“When we look at the tax system, we mainly see that there is a low compliance rate. We estimate that we can collect 1.9% of GDP through improvements in tax administration without burdening taxpayers through higher tax rates,” he said.

Calls for tax administration reform have intensified in recent months as taxpayers, tax practitioners, and businesses increasingly criticised what they describe as a one-sided reform agenda focused on raising revenue while neglecting the administrative shortcomings of the Inland Revenue Department (IRD).

At the CA Sri Lanka Annual Economic and Tax Symposium, leading tax professionals argued that future reforms should prioritise stronger governance, greater transparency, consistent interpretation of tax laws, faster refunds, improved taxpayer services, and modernisation of the IRD, warning that unpredictable administration and excessive compliance burdens risk undermining voluntary compliance, investment, and long-term economic growth despite record tax collections (https://www.ft.lk/top-story/IRD-on-dangerous-and-scary-path/26-794269).

The discussion at the CoPF ensued after Chairman MP Dr. Harsha de Silva questioned the composition of Sri Lanka’s recent economic growth, highlighting that under the production-based method of measuring GDP, taxes had become the second-largest contributor after construction.

Dr. de Silva argued that while stronger tax collection had helped restore fiscal stability, long-term growth should increasingly come from manufacturing and productive sectors rather than tax receipts.

“If the second-highest contributing factor is taxes collected by the State, what does it really mean? We are having GDP growth, but it is coming because of taxes. Growth explained by taxes is really not very meaningful,” he said.

Treasury officials agreed that the current contribution from taxes reflected the Government’s revenue-based fiscal consolidation following the 2022 economic crisis, noting that taxes less subsidies had risen to around 12.4% compared with about 4-5% previously.

“Over the medium term, we have to have a proper mechanism to generate value addition through manufacturing, construction, and services. In terms of taxes, there should be a lower contribution over the medium term for sustained economic growth,” officials said.

They said the contribution of taxes to GDP should gradually decline as structural reforms stimulate investment and private sector-led growth.

Committee members agreed that Sri Lanka was moving into a new phase of the IMF-supported reform program.

“We have gone through revenue consolidation. Now we have stabilised. Now we are going to the growth phase. We can’t carry this tax structure into the growth phase. That’s what we need to think about now,” CoPF Member Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe said. “By 2027, the major structural reforms would have been introduced, which will enable us to then focus on tax administration and ease tax rates so businesses can focus on growth,” he said.

MP Ravi Karunanayake observed that the current tax regime benefitted large corporations.

“It is skewered. The big are getting bigger and small businesses are evaporating,” he said.

Treasury officials said fiscal performance continued to exceed expectations despite external shocks.

They noted that public debt declined to 98.3% of GDP in 2025, with projections showing a further decline to around 86.7% by 2032. The Budget deficit narrowed to 2.3% of GDP in 2025, the lowest since 1956, while the primary surplus reached 5.4% of GDP and the tax-to-GDP ratio increased to 15.4%, the highest since 1997.

Revenue is expected to stabilise around 15.5% of GDP over the medium term, while the primary surplus is projected to remain at 2.6% of GDP from 2027 onwards.

Officials also told the Committee that total revenue and grants increased 34.6% during the first four months of 2026, generating a primary surplus of Rs. 863 billion against a full-year target of Rs. 360 billion and an overall Budget surplus of Rs. 105 billion, although capital expenditure execution remained low at 9.8% during the period.

The Committee also examined the Treasury’s latest Fiscal Risk Statement, which for the first time identified climate change and natural disasters among the highest fiscal risks facing the country, alongside macroeconomic uncertainties. Officials said future Budgets would need to incorporate greater fiscal preparedness, institutional resilience, and disaster-risk financing to mitigate the growing risks.