Category: Daily Financial Times

Sri Lanka is moving to bring cryptocurrency-related businesses within its anti-money laundering regime for the first time, with the Central Bank confirming that legislation now before Parliament is intended as an initial step towards regulating virtual asset service providers (VASPs) before the country’s next international anti-money laundering assessment.

Appearing before the Parliamentary Committee on Public Finance (CoPF), Financial Intelligence Unit (FIU) officials said amendments to the Financial Transactions Reporting Act (FTRA) would designate VASPs as reporting institutions, requiring them to undertake customer due diligence, identify beneficial ownership, maintain records and report suspicious transactions in the same manner as banks and other financial institutions.

Officials stressed that the changes are driven by the need to comply with Recommendation 15 of the Financial Action Task Force (FATF), which was expanded in 2019 to cover virtual assets and VASPs. Sri Lanka currently lacks a prudential regulatory framework for the sector, a gap that contributed to a deterioration in the country’s technical compliance assessment.

The Central Bank said a separate Government initiative is under way to establish a licensing and supervisory framework for VASPs. A subcommittee under the National Coordinating Committee on Anti-Money Laundering, chaired by the Digital Economy Deputy Minister, has prepared a concept paper and is seeking Cabinet approval for the broader framework. The committee includes representatives from 14 institutions, including the Inland Revenue Department.

Officials acknowledged that Sri Lanka currently has no licensing authority for crypto service providers, describing the proposed AML amendments as an interim measure designed to ensure entities operating in the sector are at least subject to anti-money laundering and counter-terrorist financing obligations while the wider regulatory architecture is developed.

CoPF members questioned why regulation of virtual assets was being led through the Digital Economy Ministry and whether the Government should move beyond AML compliance towards a comprehensive policy on cryptocurrencies, including taxation and licensing.

Committee members also raised concerns that crypto assets could facilitate tax evasion or illicit capital movements if left outside the formal financial system. Central Bank officials responded that broader policy questions, including whether and how virtual assets should be recognised, licensed or taxed, would ultimately require Government decisions beyond the scope of the current FATF-driven legislative amendments.

The proposed amendments form part of a wider package of reforms to Sri Lanka’s anti-money laundering and counter-terrorist financing framework ahead of its third FATF mutual evaluation.

In response to the rising dengue epidemic across the country, Nawaloka Hospitals Colombo has introduced a timely and community-focused initiative aimed at making early diagnosis and assistance more accessible to patients. As dengue cases continue to surge, the hospital is now extending its services beyond its premises through a mobile testing unit that brings diagnostic support directly to patients’ homes.

This initiative is designed to reduce the burden on patients and families during a critical time, allowing individuals who are unwell to undergo dengue testing in the comfort and safety of their homes. By eliminating the need for travel to hospitals during illness, the mobile service enables patients to rest, recover, and receive timely medical guidance, helping ensure a safer and more efficient recovery process.

Nawaloka Hospitals Colombo Medical Superintendent Dr. Tissa Perera noted that early detection remains one of the most important factors in managing dengue effectively. The mobile testing service supports this by enabling quicker identification of symptoms and allowing medical teams to provide immediate advice on treatment and treatment pathways.

He also emphasised the importance of proper clinical management from the early stage of the disease and expert medical supervision in treating dengue, particularly in severe or complicated cases, through advanced diagnostic support and specialised treatment when required. In line with its continued commitment to strengthening the national health system response amid the dengue epidemic, the hospital has further expanded its ward capacity to better support such patients, with designated dengue wards now fully established and operational to ensure more focused, efficient, and specialised services.

These dedicated wards and experienced medical and nursing teams have been specifically empowered to manage the increasing number of dengue-related admissions, enabling streamlined patient flow, closer clinical monitoring, and faster medical intervention where required. The arrangement allows medical teams to closely observe patients with varying levels of severity, ensuring that those with high-risk symptoms receive immediate and priority attention.

With this structured expansion, the hospital is better equipped to deliver timely diagnosis, continuous supervision, and advanced treatment protocols under the guidance of experienced consultants and critical care specialists. The dedicated dengue wards also help improve infection control measures and enhance overall patient safety within the facility.

This proactive step reinforces the hospital’s readiness to respond effectively to the evolving public health situation while ensuring that critically ill patients receive uninterrupted, high-quality treatments. By strengthening both infrastructure and clinical capacity, the hospital aims to reduce risks associated with delayed treatment and improve overall patient outcomes during this public health challenge.

Collectively, these initiatives reflect Nawaloka Hospital’s unwavering commitment to placing patients at the centre of services during a critical public health challenge. By combining accessible home-based testing, strengthened emergency preparedness, and expanded clinical capacity, the hospital is ensuring a more responsive, efficient, and compassionate healthcare approach to managing the dengue epidemic. As the situation continues to evolve, Nawaloka Hospitals Colombo remains firmly focused on safeguarding communities, enhancing early detection, and delivering high-quality medical care that ultimately supports faster recovery and saves lives.

“Out of the crooked timber of humanity, no straight thing was ever made” – Immanual Kant

By Narada

Sir Oliver Goonetilleke, then Governor-General, told Theodore Morgan-an American economist who served as advisor and later Deputy Governor of the Central Bank of Ceylon (1951-53)-that “Ceylon is the best job the British have done.” 1

The son of an obscure postmaster, Sir Oliver rose to become Auditor General, a close advisor to our first Prime Minister, Independence Negotiator with the British and eventually the Governor-General of Ceylon.

Upon retirement he settled in the United Kingdom. He owned several racehorses that ran on legendary English tracks like Ascot and Epsom.

Strangely, no one questioned how a postmaster’s son, who spent his entire lifetime in public service, managed to own racehorses in the UK. His meteoric career perfectly epitomises elite capture of the state from our pre-independence days.

H.A.J. Hulugalle, the doyen of English broadsheet journalism of the day, explained Sir Oliver’s meteoric rise: “Sir Oliver Goonetilleke reached eminence by a combination of mental ability, physical energy and a happy knack of always being there.” And also, a knack of shaping his own destiny !

This happy knack of being in the right place at the right time has helped many others who followed Sir Oliver’s blazing trail.

We see this pattern repeated in a lady entrepreneur’s memoirs, where she recounts how her husband, while waiting to meet Prime Minister Sirimavo Bandaranaike, overheard the Prime Minister’s secretary mentioning that Sri Lanka was confronting an imminent shortage of sugar. Her narrative continues by describing how an affable Food Controller helped leverage this insider information to make her fledgling enterprise with help from another budding tycoon a grand success.

Much later, when the Mahaweli Diversion Project was undertaken by the J.R. Jayewardene (JRJ) Government, the irrepressible S.P. Amarasingam, Editor of Tribune observed that “the diverted Mahaweli will flow to Trinco through Finco.”

These are irresistible reminiscences of a citizen who happily voted for AKD, and is very unlikely to be around for the next presidential election.

In his most recent address to Parliament, President Anura Kumara Dissanayake laid bare the anatomy of Sri Lanka’s governance crisis: a State hijacked by powerful intermediaries, where political immunity has long been treated as a birthright.

Proclaiming that his administration will untangle the dangerous nexus between political power, organised crime, and financial fraud, Dissanayake issued a direct challenge to the nation’s culture of impunity.

This determined push by the National People’s Power (NPP) to ‘weaponise’ the rule of law equally against all citizens strikes at a rotten structure over seven decades in the making and decaying.

The roots of this crisis trace directly back to the pre-independence State Council, where British-supervised self-governance laid the groundwork for an exclusive domestic elite to monopolise state machinery. At independence Brown Sahibs replaced the Pukka Sahibs. Professor Sunil Ariyaratne said it with poetic precession, ‘Sudda Yanta Giyeth Naha, Nogihin Hitiyeth Naha’

By asserting that no one is above the law, the NPP is trying to break the cycle of elite capture that has defined post-independence Sri Lanka. The success of this monumental effort hinges on whether the administration can systematically overhaul these foundational flaws.

AKD’s pursuit of the ideal republic where everybody is equal before the law is undertaken amidst a global disorder where all nations face uncertainty, staggering inflation, and a global energy crunch.

In this chaotic reality, one hopes there are some in our parliament who have at least a passing acquaintance with Plato’s ‘Republic’.

The Allegory of the Cave in Plato’s ‘Republic’ imagines prisoners chained in a dark cave, staring at wall shadows cast by a fire. Believing these illusions are the only reality, they resist the truth. The allegory teaches that only ‘education’ or discovering of truth is the only painful journey to break free, see true forms, and come to terms with reality. Educating people while restoring the rule of law and minding the floating dollar amidst Global disorder is no easy task.

The Allegory of the Cave provides a striking lens to comprehend Sri Lanka’s current political reality.

The Aragalaya fundamentally rewrote the rules of the game. The subsequent election of President Anura Kumara Dissanayake and a National People’s Power (NPP) Government marked a drastic break from the past.

Today, our society exists in tense friction between a collapsing “shadow world” and an imaginary future of “clear light.”

For generations, Sri Lankan voters were Plato’s chained prisoners. We sat in the dark, watching a carefully orchestrated shadow play.

Elite dynasties and a post-civil war heroic dynasty of ‘Ruhuna’- were our puppeteers.

Using controlled state media and vast patronage networks, they projected a comforting illusion of stability and prosperity.

The public was conditioned to accept the smoke and mirrors. We embraced ethnic polarisation, celebrated short-term handouts, and mistook unsustainable, debt-fueled projects for genuine economic growth.

Like the cave dwellers, we gleefully played these shadow games-fiercely debated superficial partisan politics while foundational pillars of our economy and the rule of law decayed beneath us. Can you imagine a sane nation making Basil Rajapaksa our Minister of Finance?

The 2022 economic crisis shattered the illusion. Crippling fuel shortages, hyperinflation, and a historic debt default finally broke our chains.

But, today, stepping out of the cave is proving painful and disorienting.

Dragged abruptly into the blinding light of global economic realities, we must now confront a sobering truth. Our national wealth was an imagined lie.

Today’s harsh climate of austerity-governed by IMF bailouts, crushing tax burdens, and painful structural reforms-is our agonising road back to the real world.

The NPP administration positions itself as the freed prisoner in Plato’s cave. It has returned to the depths of the cave to dismantle old illusions.

Driving a fierce campaign for truth, the Government has anchored its entire rhetoric on anti-corruption and the rule of law, promising an end to the era of political favoritism.

However, a two-thirds majority in Parliament does not fully reflect the complex ground reality. AKD must pay heed to Imanuel Kant’s timeless diktat. “Out of the crooked timber of humanity, no straight thing was ever made.”

Sri Lankan society remains highly polarised. Traditional political blocs embedded bureaucratic structures, and sections of the population accustomed to the old patronage system actively resist these new, structural shifts. Facing a 25% poverty rate, severe public spending constraints, and environmental shocks, many citizens experience “reform fatigue.” They find themselves longing for the familiar, predictable comfort of the old shadow world, even if that world was built on an absurd lie.

Footnote

1 Morgan repeats Sir Oliver’s remark in a paper on Economic Development of Ceylon, published in The Annals of the American Academy of Political and Social Science.

Fresh scheme to replace unissued portion of 2022 Employee Share Option Plan, subject to CSE and shareholder approval

hSenid Business Solutions PLC has proposed a new Employee Share Option Plan (ESOP) covering 3.62 million ordinary shares that remained unallocated under its previous employee share ownership scheme, as the software company seeks to continue incentivising and retaining employees.

The company said its Board had resolved to establish a new ESOP under which eligible employees of hSenid Business Solutions and its subsidiaries, including fixed-term contract staff selected by the Board, would be granted share options over 3,618,580 ordinary shares.

If exercised in full, the new ESOP would result in the issue of shares equivalent to approximately 1.22% of the company’s enlarged issued share capital.

The proposed scheme follows the conclusion of the ESOP approved by shareholders in December 2022, which authorised the company to grant options over up to 10 million shares, representing approximately 3.49% of its post-issue share capital at the time.

Following the issue of 8.56 million new shares through a scrip dividend in 2024, the pool of shares available under the scheme was proportionately increased to 10.31 million shares.

During the option grant period, which ran from 1 April 2023 to 6 December 2025, the company granted options over 6.69 million shares, leaving 3.62 million shares unallocated.

Rather than allowing the balance to lapse, the Board has decided to establish a new ESOP utilising the remaining allocation.

The company said the proposed scheme complies with the Colombo Stock Exchange (CSE) Listing Rules governing ESOPs and will require approval in principle from the CSE for the issue and listing of the new shares, as well as shareholder approval by way of a special resolution at a General Meeting.

As at the date of the announcement, hSenid Business Solutions had a stated capital of Rs. 1.03 billion and 285.34 million issued ordinary shares.

Opposition Leader Sajith Premadasa yesterday held the Government responsible for the recent violence at the Negombo Prison, arguing that a State unable to ensure the safety of those in its custody cannot credibly claim to guarantee national security.

Speaking during the adjournment debate in Parliament on the Negombo Prison incident, Premadasa said the Government bore full responsibility for the lives of prisoners and remand detainees because they remained in State custody.

He recalled that President Anura Kumara Dissanayake, while serving as an Opposition MP, had previously stated that the Government was responsible for protecting the lives of all persons held in custody.

Premadasa said more than 26 people had been killed and over 100 injured in the recent violence at Negombo Prison, adding that the Government should accept full responsibility for the incident.

He noted that prison reform, reducing overcrowding and rehabilitation fell within the responsibilities of the Ministry of Justice and National Integration, and said the Constitution’s chapter on fundamental rights prohibited torture and cruel, inhuman or degrading treatment or punishment.

Premadasa argued that successive governments had failed to address longstanding problems in the prison system, despite repeated promises of reform. He said the current Government had pledged in its policy statement to transform the prison sector as part of its promise to replace the failures of the past 76 years, but the Negombo incident suggested that the promised ‘system change’ had not materialised.

Referring to media reports, he said Sri Lanka’s prisons were designed to accommodate around 10,000 inmates but were currently holding nearly 40,000. He questioned whether the Justice Minister had adequately assessed overcrowding and the risks arising from it.

Premadasa also said the Government had failed to learn lessons from previous incidents at the Mahara and Welikada prisons. He criticised the continuing failure to appoint a permanent Commissioner General of Prisons and questioned whether even a preliminary report on the Negombo incident had been obtained.

He further questioned whether the Justice Minister accepted the President’s earlier position that the Government was responsible for protecting the lives of prisoners in State custody, arguing that the deaths and injuries demonstrated both the Government’s failure and its inability to deliver the institutional reforms it had promised.

Premadasa also accused the Justice Minister of focusing on proposals relating to the retirement age of Supreme Court judges instead of addressing problems within the prison system. He said that if the Government could not ensure security inside a prison, it was legitimate to question how it intended to guarantee the security of the country’s 22 million people.

The National Credit Guarantee Institution (NCGI) officially opened its new office on the 7th floor of HNB Towers, Colombo, today (07), marking a significant expansion of its operations.

A key highlight of the event was the symbolic presentation of the institution’s 2,000th credit guarantee, issued within just 15 months of operation. Through these guarantees, more than Rs. 14 billion in loans has been facilitated for small and medium-sized enterprises (SMEs) across Sri Lanka.

Implemented with the support of the Asian Development Bank (ADB) and the Ministry of Finance, the program aims to strengthen entrepreneurship by expanding access to finance for businesses that lack collateral. NCGI expects to increase the number of beneficiaries to 4,000 by the end of the year and further enhance its contribution to the national economy.

NCGI commenced operations in January 2025 by issuing its first credit guarantee for an agricultural project in the Uva Province. The highest number of beneficiaries so far has been recorded in the Western, Southern, and Northern Provinces. In addition, 20% of the total guarantees have been allocated to women-owned businesses, while 24% has supported priority sectors such as agriculture, information technology (IT), tourism, and exports.

Addressing the gathering, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe stated that the Government plans to establish a Development Bank and a stronger cooperative banking system in the future to further strengthen the country’s financial sector.

‘There was a time when people said that initiatives like this could not be implemented in countries like ours. You have successfully and credibly taken up that challenge. As a Government, we have identified several issues within the financial sector, particularly the need to support entrepreneurship through collateral-free lending,’ the Deputy Minister said.

‘We are pleased with the progress made so far. We now have the opportunity to expand the volume of loans and increase the number of beneficiaries. We believe this institution will continue to strengthen its services and play an even greater role in the future,’ he added.

He also noted that the Government is working with the United Nations Development Program (UNDP) and the Asian Development Bank (ADB) to identify sustainable solutions to challenges in the microfinance sector and the equity financing difficulties faced by entrepreneurs.

Recalling that the private banking sector provided approximately Rs. 2.1 trillion in loans to the private sector last year, the Deputy Minister encouraged banks and financial institutions to introduce innovative financing mechanisms for entrepreneurs.

He further emphasised that despite numerous challenges, Sri Lanka’s export sector continues to demonstrate significant growth and reaffirmed the Government’s commitment to supporting entrepreneurship as a pathway to poverty alleviation.

The event was attended by Deputy Minister Chathuranga Abeysinghe, CBSL Governor Dr. Nandalal Weerasinghe, NCGIL Chairman and Deputy Secretary to the Treasury Sanjaya Mudalige, NCGIL Chief Executive Officer Jude Fernando, Additional Director General Chamila Karunaratne, ADB Senior Financial Sector Specialist Manohari Gunawardena, senior executives from banks, representatives of chambers of commerce, and many distinguished guests.

Sampath Bank PLC has introduced Google Pay for all Mastercard and Visa credit and debit cardholders, marking a significant advancement on how customers in Sri Lanka access digital payment solutions. This initiative brings fast, secure, and globally accepted tap-to-pay functionality to Android devices, catering to the increasing demand for mobile-first solutions.

Mobile wallets are reshaping how consumers interact with their finances, particularly among digitally savvy users and frequent travellers who prioritise convenience and security. Through this integration, cardholders can digitise their Visa credit and debit cards, along with Mastercard credit and debit cards and perform transactions seamlessly across in-store, in-app, and online platforms.

The solution removes the need to carry physical cards while ensuring acceptance at millions of merchants worldwide. It also supports the ongoing shift towards a secure, contactless payment ecosystem in Sri Lanka, in line with evolving customer expectations and global digital trends.

Commenting on the launch, Chief Business Intelligence Officer Darshin Pathinayake said: ‘Digital adoption today is driven by how intuitively financial services integrate into daily routines. Customers expect experiences that are secure, responsive, and globally relevant without added complexity. Google Pay enables Sampath cardholders to transact with confidence while staying seamlessly connected to their finances, where banking becomes a natural extension of everyday life rather than a separate interaction.’

Each transaction is backed by advanced tokenisation technology, which replaces sensitive card information with secure digital identifiers. This ensures that customer data remains protected at every stage while maintaining a fast and seamless payment experience. Supported by Sampath Bank’s robust digital infrastructure and integrated with Google’s global payments ecosystem, the solution delivers scalability and reliability across both local and international payment environments.

Head of Card Centre Chirath Samarasekara said: ‘Card usage is evolving beyond physical formats into a more flexible digital payment environment. Google Pay enhances the everyday utility of SampathCards by enabling a consistent payment experience across multiple channels and geographies. Our cardholders can now benefit from tap-to-pay convenience locally, secure online transactions, and the freedom to transact globally without disruption. This integration strengthens customer engagement while aligning with the growing preference for contactless and mobile-first payments, reinforcing trust in digital channels.’

Googly Pay is now available on Android devices for Sampath Mastercard and Visa credit and debit cardholders, reinforcing the bank’s commitment to delivering secure, convenient, and globally connected payment solutions that meet the evolving needs of modern consumers.

Shewon Fonseka of Sri Lanka has achieved the current World No.3 ranking in the World Indoor Cricket Player Rankings following an outstanding performance at the last Indoor Cricket World Cup.

The rankings are based on the performances at the World Cup.

Shewon delivered a brilliant all-round performance, scoring 193 runs in 11 matches and taking 17 wickets finishing as the highest run scorer in the World Cup 2025 and one of its standout performers.

This achievement reflects his consistency, dedication and commitment to the sport, placing him among the elite indoor cricket players in the world with only two Australian players ahead of him in the rankings.

This is the first time a Sri Lankan player has achieved such stats at a World Cup. Shewon is only 27 and has a long journey with CICA (Ceylon Indoor Cricket Association).

The Colombo stock market yesterday extended its slide for a sixth straight session, failing below 22,000 points on selling pressure.

The ASPI was down 0.54% or 118.35 points at 21,962.30 and the S and P SL20 was down 0.51% or 31.55 points at 6,135.50.

Turnover was over Rs. 1.5 billion on nearly 58 million shares traded. Losers outweighed gainers with 169 counters closing in red against 49 in green. Foreigners were net seller on a net outflow of Rs. 185 million.

First Capital Research said investor sentiment remained subdued amid broad-based selling pressure across selected counters.

HNW participation remained slightly active, supported by several negotiated crossings, while retail participation remained at average levels. The main negative contributors to the ASPI were DIAL, MELS, JKH, CARS, and CIC.

The capital goods sector led the daily turnover with a share of 31%, followed by the retailing, and materials sectors collectively contributing 22%.

NDB Securities said the indices closed in red as a result of price losses in counters such as Dialog Axiata, Melstacorp and John Keells Holdings.

High net worth and institutional investor participation was noted in John Keells Holdings, Sathosa Motors and Windforce. Mixed interest was observed in ACL Cables, Haycarb and HNB Finance, whilst retail interest was noted in Lanka Credit and Business Finance, Browns Investments and Renuka Agri Foods.

The capital goods sector was the top contributor to market turnover due to John Keells Holdings and Access Engineering, whilst the sector index lost 0.24%. The share price of John Keells Holdings decreased 10 cents to close at Rs. 20 and Access Engineering gained 30 cents to Rs. 78.40.

The retailing sector was the second-highest contributor to market turnover due to Sathosa Motors, whilst the sector index edged down by 0.03%. Sathosa Motors lost Rs. 53.25 to close at Rs. 1,200.25.

Windforce and Chevron Lubricants were also among the top turnover contributors. The share price of Windforce moved down 10 cents to Rs. 40.80 and Chevron Lubricants appreciated Rs. 1.25 to close at Rs. 200.50.

Colombo Kickerz Football Academy brought world-class youth football coaching to Sri Lanka by hosting the Juventus Training Camp Colombo 2026, which commenced on 6 July and will continue until 10 July at the CR and FC Grounds in Colombo.

The five-day program follows the success of its inaugural edition in 2025 and further strengthens the academy’s commitment to developing young footballers.

Around 50 players from across the country are taking part in the camp, which is being conducted by two official Juventus Academy coaches from Italy, assisted by Colombo Kickerz’s coaching staff.

Participants are undergoing intensive training based on the renowned Juventus methodology, with emphasis on technical skills, tactical awareness, teamwork, discipline and personal development.

The limited number of participants has been introduced to ensure greater individual attention and a more personalised learning experience.

Colombo Kickerz CEO Romario De Silva said the return of the camp reflects the growing enthusiasm for football development in Sri Lanka and provides aspiring players with access to international-standard coaching without leaving the country.

Juventus Training Camp Colombo 2026 is supported by Hilton Colombo Residences as the Hospitality Partner, Aitken Spence Travels as the Travel Partner and ThePapare as the Digital Media Partner.