Category: Daily Financial Times

The Council for Business with Britain (CBB) of The Ceylon Chamber of Commerce held its 26th Annual General Meeting at Westminster House, Colombo, bringing together members and stakeholders committed to strengthening trade and investment relations between Sri Lanka and the United Kingdom.

Norfolk Foods Managing Director Ameena Ziauddin was elected President of the Council for Business with Britain for the 2026-2027 term. KPMG Sri Lanka Principal and Head of Deal Advisory Shiluka Goonewardene assumed office as Senior Vice President, while LSEG Chief Financial Officer Fadhil Jiffry was elected Vice President. We Are Team Rocket Chief Executive Officer Krystle Reid Wijesuriya was elected Treasurer. Immediate Past President, HSBC CEO Mark Surgenor will continue to serve on the Committee.

The following companies were elected to serve on the Council’s Committee for 2026-2027: Aitken Spence Travels Ltd., GTN Technologies Ltd., Hayleys PLC, Hilton Colombo Residences, John Keells Holdings PLC, MAS Holdings Ltd., Ocean Pick Ltd., Point to Point Consulting, Unilever Sri Lanka Ltd., Wilton Metal Box Company Ltd.

The Council also invited British High Commission Head of Trade and Investment Asanthi Fernando, Commercial Bank of Ceylon Chief Executive Officer Sanath Manatunge, The British School in Colombo Principal Hannah Wells, and British Council Sri Lanka Country Director Orlando Edwards to serve on the Committee by invitation. Shirendra Lawrence, Roshanie Moraes, and Tania Polonnowita were appointed to the Advisory Committee, ensuring continuity and strategic guidance for the Council’s future initiatives.

Addressing the gathering, British High Commissioner to Sri Lanka Andrew Patrick congratulated the Council on its continued achievements in promoting bilateral business relations. While commending Sri Lanka businesses for their adaptability and innovation, he welcomed the increase in British tourist arrivals to Sri Lanka and recent developments in aviation connectivity, which are expected to further strengthen commercial engagement and linkages between the two countries.

Highlighting the United Kingdom’s continued commitment to supporting Sri Lanka’s economic growth, His Excellency drew attention to the Developing Countries Trading Scheme (DCTS), one of the most generous trading preference schemes in the world, which provides zero-tariff access for Sri Lankan exporters to the UK market. He noted that the latest reforms introduced in January 2026 provide a significant boost to Sri Lanka’s apparel sector by expanding preferential market access and enhancing the competitiveness of Sri Lankan exports. He encouraged Sri Lankan businesses to make full use of the opportunities available under the DCTS to diversify exports, increase trade, and further strengthen the economic partnership between the United Kingdom and Sri Lanka.

Delivering his farewell address, Outgoing President Mark Surgenor reflected on a year of significant progress for the Council. He noted the continued growth of bilateral trade, supported by the United Kingdom’s Developing Countries Trading Scheme (DCTS), which has created enhanced market access opportunities for Sri Lankan exporters. Surgenor highlighted several key achievements during his tenure, including the establishment of a dedicated Next Generation and SME platform aimed at engaging young professionals, entrepreneurs, and future business leaders, economic briefings, networking events, and collaborative engagements with public and private sector stakeholders.

In her inaugural address, Ameena Ziauddin reaffirmed her commitment to strengthening the Council’s role as a platform for business collaboration and highlighted the success of the NextGen Committee, the first initiative of its kind established under a business council in Sri Lanka. The platform has created opportunities for young professionals and entrepreneurs to engage meaningfully with the business community while supporting the development of future business leaders.

A single cycle of a criminal case in Sri Lanka takes an average of 10 years and two months to conclude, highlighting deep-rooted delays in the country’s justice system, Justice Yasantha Kodagoda said in a video of a public address shared on social media.

Justice Kodagoda said more than 1.1 million cases are currently pending before the country’s courts, which are handled by just 333 courts nationwide.

He said these comprise 80 magistrates’ courts, two child magistrates’ courts, 64 district courts, 94 combined district and magistrates’ courts, 53 High Courts, five commercial High Courts, 23 civil appellate High Courts, seven judges of the Court of Appeal and five divisions of the Supreme Court.

If the caseload were distributed evenly, each court would be responsible for handling more than 3,300 cases, he said, adding that the limited capacity of judges, legal officers and support staff has had a direct impact on the speed of justice.

Explaining the criminal justice process, Justice Kodagoda said a case begins with a police investigation following the reporting of an offence, proceeds before a magistrate, followed by the filing of indictments by the Attorney General in the High Court before trial and conclusion.

Citing the findings of a 2013 survey, he said the average time taken to complete this process exceeds a decade.

‘As an example, if a burglary is reported today, the first phase of the case would only conclude in August 2036,’ Justice Kodagoda said, stressing the need for reforms to address systemic delays in the administration of justice.

Sri Lanka’s veteran shuttlers dominated the Ceylon Masters International Badminton Championships 2026, claiming an impressive 35 Gold medals as they emerged as the most successful nation at the four-day tournament held at the Air Sports Complex in Rajagiriya.

The championships, which attracted Masters’ players from 15 countries, showcased high-quality competition across various age-group singles and doubles events. Sri Lankan players topped the medals table with the highest number of championship and runner-up finishes, underlining the country’s strength in Masters’ badminton.

Among the standout performers were Niroshan Wijekoon, Nadeesha Gayanthi, Renu Chandrika De Silva, Thushari Brahmanage, Niluka Karunaratne, Rohan De Silva, Hasitha Chanaka and Duminda Jayakody, who were among a host of local players to produce outstanding performances throughout the tournament.

Many of the leading Sri Lankan competitors are former national players who represented the country during their prime, while several are former national champions. Their continued success highlighted the depth of experience and enduring quality within Sri Lanka’s Masters’ badminton circuit.

The strong participation of overseas players also reflected the growing appeal of the event on the international calendar. Players from 15 countries competed in the championships, reinforcing Sri Lanka’s potential to develop sports tourism by hosting major international Masters’ events.

The CMB International Badminton Championships 2026 also received strong backing from the corporate sector. Some of the country’s leading companies, including McLarens Group, Mobil, Prime Group, 3M, Cool Max, Iodex, Li-Ning, Hundred, RovinAds, Seylan Bank, Sampath Bank, HNB Finance, Ceylon Biscuits Ltd., Mr. FixIt, McFoil and Elite Badminton, stepped forward as sponsors, playing a key role in the successful staging of the tournament.

The Public Relations Association of Sri Lanka, the national body representing the public relations profession, has organised a high profile talk and panel discussion on how Sri Lanka could engage with overseas investors and collaborators to enhance the nation’s attractiveness and competitiveness for foreign direct investment (FDI) and joint ventures. The event, to be held at the Port City Colombo Sales Gallery on Monday, 6 July commencing at 6.00 p.m., will feature internationally renowned scholar Prof. Patrick Mendis and a distinguished panel including Colombo Port City Economic Commission Chairman Harsha Amarasekera PC, former BOI Chairman Arjuna Herath, and Solutions Ground CEO Lakshan Madurasinghe. The discussion will be moderated by PRASL Vice President Shehara de Silva.

Harvard-educated Prof. Mendis – a visiting scholar in global affairs and former U.S. diplomat and NATO military professor who served during the administrations of six American Presidents, will draw upon his roots as a Polonnaruwa-born former AFS Exchange Scholar to explore the relevance of a foreign policy grounded in Sri Lanka’s own resources, history, and civilisational heritage. His lecture, titled ‘The Mahaweli Doctrine: Sri Lanka’s Foreign Policy must be like Water for a National Renaissance’, will examine how the nation’s waterways, strategic location and historical experience can inform a distinctive vision for Sri Lanka’s future engagement with the world.

The themes raised in the keynote address will then be examined in the context of Sri Lanka’s current efforts to attract foreign investment and forge international partnerships in manufacturing and services through the panel discussion.

Speaking on the rationale behind the event, PRASL President Nimal Gunewardena said: ‘We have sought for PR to be recognised as a strategic communications discipline that not only builds reputation and image but also helps drive vital initiatives successfully for government and corporates alike. This event seeks to advance the Association’s vision while demonstrating how strategic communications can contribute to Sri Lanka’s national development and global engagement.’

Several corporate partners have been approached for endorsement and support. Port City Colombo has partnered with PRASL by sponsoring the venue and event facilities.

Sanasa Life Insurance Company PLC yesterday said it aims to restore its investment-grade credit rating within 15 months through an equity capital raising after its debt securities remained on the Colombo Stock Exchange (CSE) Watch List following a qualified audit opinion and an emphasis of matter on going concern in its 2025 financial statements.

The insurer said its audited financial statements for the year ended 31 December 2025, released to the market on 2 June 2026, contained a qualified audit opinion and an emphasis of matter relating to the company’s ability to continue as a going concern.

The company noted that its debt securities had already been transferred to the CSE Watch List with effect from 9 January 2026 after its credit rating was downgraded below investment grade. It said the qualified audit opinion and going concern emphasis constitute an additional reason for the securities to remain on the Watch List until the matters are resolved in accordance with the Listing Rules or a fresh rating certificate for the relevant financial year is disclosed to the market.

Sanasa Life said it is in the process of taking steps to resolve the issues within 15 months by upgrading its credit rating to investment grade through an equity capital raising. It added that a market announcement would be made once the capital-raising exercise is finalised.

The insurer also said that if there is any deviation from its proposed remedial action, it will notify investors through the CSE within one market day of obtaining Board approval for such changes.

The company further noted that if it fails to obtain a fresh credit rating or resolve the matters giving rise to the qualified audit opinion and the emphasis of matter on going concern within 15 months from the date its securities were transferred to the Watch List, trading of its securities will be suspended. If the suspension continues for more than 12 months, the CSE Board may delist the securities in terms of Section 14 of the Listing Rules.

It added that if the matters are resolved and independently verified by its auditor while the securities remain on the Watch List, the development will be disclosed to the market immediately through the CSE.

As calls grow from Opposition lawmakers for Sri Lanka to secure a successor International Monetary Fund (IMF) program before the current Extended Fund Facility (EFF) expires next year, Advocata Institute CEO Dhananath Fernando yesterday argued that another bailout need not become inevitable if the Government uses its political mandate to implement long-delayed structural reforms now.

Delivering the keynote address at CA Sri Lanka’s 5th Annual Economic and Tax Symposium, Fernando said Sri Lanka had regained macroeconomic stability through painful adjustment measures, but warned that returning to another IMF program would simply defer the country’s underlying economic weaknesses unless successive governments tackle the politically difficult reforms required to lift productivity, expand private sector investment, and create jobs.

‘My view is, since we have to do it at any point, better to do it now,’ Fernando said. ‘We can go to another IMF program. But it will be kicking the can down the road.’

Fernando stressed that he was not criticising the IMF itself. ‘It doesn’t mean that the IMF is a bad thing,’ he said.

Instead, he argued that Sri Lanka should use the breathing space created by the current program to complete reforms domestically, reducing the need for repeated IMF-supported adjustment cycles.

‘Ultimately, whatever happens in the global environment, the solution lies within our own territory. It is what we do that defines how we face external shocks,’ he said.

His remarks come as the debate over Sri Lanka’s post-program strategy gathers momentum. Several Opposition legislators have urged the Government to begin negotiations for a follow-on IMF arrangement before the current four-year program concludes next year, arguing that continued Fund engagement would reinforce investor confidence and policy discipline.

At the same time, IMF officials have repeatedly indicated that the program’s later reviews will increasingly focus on structural reforms capable of generating sustained private sector-led growth rather than macroeconomic stabilisation alone.

Fernando argued that the present administration is uniquely positioned to undertake those reforms because it enjoys an ‘unprecedented mandate.’

‘The President has an unprecedented mandate. He has three more years,’ he said.

He noted that the Government’s two-thirds parliamentary majority and comparatively favourable political environment provide a rare opportunity to push through reforms that previous administrations struggled to implement.

Even trade unions, traditionally among the strongest opponents of market-oriented reforms, could be managed under the current political conditions, he argued.

‘The difficult parties can also be managed,’ he said.

While acknowledging concerns over the State’s implementation capacity, Fernando maintained that the Government should move quickly before political priorities inevitably shift towards the next election cycle.

‘The last part of the term will be about elections,’ he said.

Against that backdrop, Fernando outlined six reforms he described as critical to sustaining Sri Lanka’s recovery.

He called for accelerated restructuring of State-owned enterprises (SOEs) through the proposed State-Owned Holding Company, arguing that SOEs collectively hold assets equivalent to around 50% of GDP while contributing relatively little to public finances.

He also urged the Government to permit privately developed industrial zones, noting that existing zones are operating at more than 90% occupancy and cannot accommodate the investment required to create the estimated 1 million private sector jobs Sri Lanka will need over the coming years.

Fernando further called for deeper Customs and trade reforms, including expanding Sri Lanka’s network of free trade agreements, accelerating the Bim Saviya land title program to unlock investment, reforming labour regulations, and rationalising the public holiday calendar to improve productivity.

He acknowledged that several of these proposals would be politically unpopular but argued that postponing them would only weaken Sri Lanka’s long-term growth prospects.

‘If we are really serious about improving productivity, those reforms have to happen,’ he said.

Fernando argued that the country has already restored fiscal stability and repaired much of the macroeconomic damage caused by the crisis, but warned that sustainable growth cannot be achieved through tax increases alone.

Instead, he said, Sri Lanka’s next phase of recovery must be driven by higher productivity, stronger exports, and a more competitive private sector capable of generating employment and sustaining debt repayment without repeated external rescues.

‘The opportunities can only be created by doing reforms,’ he said. ‘And we have to do it now.’

The Market Research Society of Sri Lanka (MRSSL) elected its Executive Committee for the 2026 term at its 13th Annual General Meeting, with Suthaharan Perampalam being re-elected as President for a second consecutive term.

In his acceptance speech, Perampalam expressed his gratitude to the membership and Executive Committee for their continued support, acknowledging their collective efforts in delivering a successful year for the Society. He highlighted the growing importance of data, insights, and evidence-based decision-making in today’s business environment, noting that while technology continues to transform, the role of market research remains critical as we are directly connecting to the people and capturing consumer perspectives freshly.

‘At this important juncture, we must continue to strengthen our profession by upholding high standards and creating meaningful value for all our members,’ he said.

Looking ahead, Perampalam outlined plans to deepen engagement with research agencies and industry stakeholders while enhancing knowledge-sharing and professional development initiatives to meet the evolving needs of the industry.

The Society also announced changes to its Board of Directors, with Neomal Marambe of Quantum Consumer Solutions and Suresh Jayaweera of Breakthrough Business Intelligence joining the Board. MRSSL extends its appreciation to outgoing Board Directors Roshani Fernando and Dilini Jayasuriya for their dedicated service and valuable contributions to the Society.

Sanasa Life Insurance Company PLC has fully subscribed a Rs. 500 million subordinated debenture issue aimed at strengthening its capital base and supporting the lifting of regulatory restrictions on its insurance licence, the company said.

The company said it had successfully placed 5 million unrated, unlisted, unsecured, cumulative, redeemable Tier II subordinated debentures with identified investors through a private placement, in compliance with conditions set by the Securities and Exchange Commission of Sri Lanka (SEC).

The issue, which carried a lock-in clause, was completed on 26 June, with proceeds amounting to Rs. 500 million held in an escrow account pending regulatory clearance.

The funds will remain in escrow until the Insurance Regulatory Commission of Sri Lanka (IRCSL) lifts the suspension on the company’s insurance licence, following confirmation that it has met the required capital adequacy thresholds under the Risk-Based Capital (Solvency Margin) Rules of 2015.

The company said the capital raise significantly strengthens its solvency position.

Based on its monthly returns as at 31 May 2026, Sanasa Life said its Capital Adequacy Ratio (CAR) would stand at 141% if the debenture proceeds are treated as cash in escrow, and at 160% if the funds are assumed to be invested in Government securities.

Both scenarios remain well above the regulatory minimum CAR requirement of 120% and the minimum total available capital (TAC) requirement of Rs. 500 million stipulated by the IRCSL.

However, the company noted that the figures remain subject to change depending on the 30 June valuation, which will be disclosed separately to the market.

Following the completion of the issue, Sanasa Life has formally requested the IRCSL to lift the suspension on its insurance licence, citing compliance with the required solvency benchmarks.

The regulator has requested additional information from the company, the company said.

The transaction was carried out in line with conditions set out in the SEC’s approval letter dated 6 April 2026.

Although Sri Lanka has restored macroeconomic stability and completed its sovereign debt restructuring, international investors continue to demand yields well above US Treasury benchmarks to hold the country’s debt, signalling that investors have yet to price in Sri Lanka’s economic stabilisation, Advocata Institute CEO Dhananath Fernando said yesterday.

Delivering the keynote address at CA Sri Lanka’s 5th Annual Economic and Tax Symposium, Fernando said International Monetary Fund (IMF) debt sustainability projections show Sri Lanka’s post-restructuring external debt service obligations will rise to around $ 3.5 billion in 2027, while the country’s 2035 International Sovereign Bond (ISB) continues to trade at a yield of about 8.3%, compared with roughly 4.3% on comparable US Treasury securities.

The spread, he said, shows investors continue to price Sri Lanka as a high-risk sovereign despite its recovery from the 2022 default.

‘The economy is stable, but the market really doesn’t see the indication that the risks are coming down,’ Fernando said.

He argued that debt restructuring has eased Sri Lanka’s immediate repayment burden but has not fundamentally resolved the country’s long-term debt sustainability challenge.

Drawing on the IMF’s debt sustainability analysis, Fernando contrasted Sri Lanka’s pre-restructuring repayment profile, which would have required external debt servicing of around $ 7 billion in 2023, with the revised post-restructuring schedule.

While the new repayment profile is considerably more manageable, he cautioned that Sri Lanka remains dependent on maintaining access to international capital markets.

‘Our debt numbers are now within our capacity to pay,’ he said. ‘But it doesn’t mean we are completely out of the woods.’

Fernando said sovereign debt should not be viewed as something governments simply repay from accumulated savings. Instead, countries refinance maturing obligations by issuing new debt.

‘We borrow from Peter to pay Paul,’ he said. ‘If we raise $ 2 billion through a five-year Bond in 2027, that repayment simply moves to 2032 with additional interest.’

The country’s ability to refinance future obligations at sustainable borrowing costs, he said, ultimately depends on convincing investors that Sri Lanka has become a fundamentally lower-risk borrower rather than a country that has merely emerged from default.

That, in turn, requires continued improvements in sovereign credit ratings.

Fernando noted that although rating agencies have begun upgrading Sri Lanka following the completion of debt restructuring, the country remains well below investment-grade status and continues to face elevated borrowing costs.

‘The deal is to increase the rating,’ he said.

He argued that achieving further upgrades will become increasingly challenging as global capital becomes more selective amid geopolitical tensions, shifting trade patterns, and intensifying competition for investment.

The persistence of elevated sovereign yields demonstrates that markets have yet to fully price in Sri Lanka’s economic stabilisation, he said.

‘This means investors are asking 8.3% because they still see a massive risk,’ Fernando said.

Although he commended the Government for restoring fiscal discipline, Fernando argued that fiscal consolidation alone will not alter that perception.

‘Our fiscal house is in order,’ he said, but cautioned that stronger tax collections alone cannot generate the long-term growth needed to sustain debt repayments. ‘We cannot tax our way towards prosperity.’

Fernando also observed that Sri Lanka’s recent economic expansion of around 5% had been driven largely by construction activity and tax receipts, particularly following the resumption of vehicle imports, rather than by a broad-based improvement in productivity.

While those developments have strengthened public finances, he argued they are unlikely on their own to convince investors that Sri Lanka’s long-term growth prospects have materially improved.

Instead, Fernando said debt sustainability ultimately depends on raising productivity, expanding exports, and building a more competitive private sector capable of generating the foreign exchange required to meet future external debt obligations.

Without those reforms, he warned, Sri Lanka risks returning to another IMF-supported adjustment cycle despite having completed its debt restructuring.

‘The solution lies within our own territory,’ Fernando said. ‘It is what we do that defines how we face external shocks.’

The Capital Maharaja Group (CMG) has announced the appointment of Ravi Gamage to its Main Board of Directors with effect from 19 June 2026. Gamage currently serves as Group Director Human Resources of CMG.

CMG Chairman and Managing Director Sashi Rajamahendran said: “One of our responsibilities as leaders is to create opportunities for the next generation to step forward and contribute. Ravi’s appointment reflects not only his own dedication and growth, but also our belief in developing leaders from within. As an organisation, we must continue to evolve while remaining true to the values that have shaped us over the years.”

For more than nine decades, the Group’s success has been built on a simple but enduring belief – that organisations remain strong when experience and fresh perspectives work side by side. Throughout its history, CMG has provided opportunities for capable leaders to grow, take on responsibility, and contribute meaningfully to shaping the future of the organisation.

Gamage’s journey within the Group reflects that philosophy. Having served in a variety of leadership roles across media, management, and human resources, he has worked closely with teams across the Group’s diverse portfolio of businesses. His appointment to the Board is a reflection of both his professional growth and the confidence placed in emerging leaders who understand the organisation, its people, and its values.

At a time when businesses are navigating unprecedented change, the Board recognises the importance of ensuring that CMG continues to stay focused on the future.