Foreign holdings in rupee Treasuries surges; highest weekly inflow since June 2023

The foreign demand for rupee-denominated Government securities gathered significant momentum, with holdings rising for a third consecutive week.

The week ending 25 June recorded a substantial net inflow of Rs. 14.51 billion, the largest weekly foreign inflow in over three years, since 8 June 2023, driving total foreign holdings up to Rs. 135.86 billion.

The outcome at last Fridays Treasury Bond auction saw the yield curve flattening from the 4-year duration to the 10-year duration as the term premiums were seen narrowing.

The entire offered amount of Rs. 60 billion was raised at the first phase of the auction while the direct issuance window will be opened for an additional 10% of the offered amount on each duration at its weighted averages until 3.00pm today (30 June).

The bids received to accepted amount ratio stood at a staggering 3.17 times.

Maturity-wise the results were as follows:

The shorter tenor 15.10.30 maturity was issued at a weighted average yield of 11.44%, marginally above its pre-auction secondary market rate of 11.35%-11.40%.

The 15.03.35 maturity was issued at the weighted average yield of 11.88%, below its pre-auction secondary market rate of 11.85%-12.00% (see table for details of the auction).

The secondary Bond market remained largely range-bound during the week, with yields consolidating despite some volatility.

Strong buying interest, particularly in the 2030 maturities, briefly pushed yields lower midweek before profit taking prompted a partial reversal. Activity moderated ahead of the Treasury Bond auction as investors adopted a wait-and-see approach. Overall, market activity remained healthy while yields ended the week slightly higher on the short end, while the rest of the yield curve was broadly unchanged.

In the secondary Bond market, the 15.03.28 maturity changed hands within the range of 10.60%-10.6225%, while the 01.05.28 maturity traded within the range of 10.64% to 10.60%. The 15.10.28 maturity traded within the range of 10.6550% to 10.6350%.

Moving into the 2029 segment, the 15.06.29 maturity changed hands at the rate of 10.92%, while the 15.12.29 maturity touched a weekly low of 10.90%, before trading back up at 11.00%.

In the 2030 space, the 01.03.30 maturity changed hands at the rate of 11.05%. The 01.08.30 maturity touched an intraweek low of 11.14%, before trading back up to 11.30%. Similarly, the 15.10.30 maturity traded down to a low of 11.15% prior to the auction, before trading up to 11.40%.

Further along the curve, the 15.01.33 maturity changed hands within the range of 11.60%-11.55%. The 01.11.33 maturity traded within the range of 11.65% to 11.60%. The 15.06.34 maturity traded within the range of 11.70% to 11.65%.

Corporate restructuring: Mastering the tools, navigating the tax

Corporate restructuring is simultaneously an art and a science. It is a discipline that demands both technical mastery and strategic judgment, the capacity to identify the right instrument for the right purpose, and the wisdom to deploy it with precision. For advisers, in-house counsel, and finance professionals operating in Sri Lanka’s evolving regulatory landscape, this dual competency has never been more consequential.

The science: Knowing the toolkit

The first imperative is command of the available tools. Corporate restructuring does not operate in a vacuum. It draws from a rich body of statute and practice; the Companies Act No. 07 of 2007, the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, No. 12 of 2026, the Foreign Exchange Act, the Securities and Exchange Commission Act, and the Bills of Exchange Ordinance etc, each contributing a distinct set of instruments that the skilled practitioner must know with fluency.

Companies Act: The primary instrument box

The Companies Act provides the broadest and most frequently deployed toolkit. At the capital structure level, a company may issue new shares, ordinary, preference, or redeemable , through a public or private placement, or conduct a rights issue to raise fresh equity from existing shareholders on a pro-rata basis. Share consolidations reduce the number of shares in issue by combining multiple shares into one unit, whilst share splits achieve the inverse, increasing liquidity by subdividing existing shares. Bonus issues capitalise retained earnings or reserves by issuing script shares to existing shareholders, restructuring the equity base without any cash movement.

On the distribution side, the Act contemplates cash dividends, in-specie dividends (where assets rather than cash are transferred to shareholders ) and scrip dividends, where shareholders receive new shares in lieu of a cash payout. Each carries a distinct commercial rationale and a distinct tax profile.

The Act also governs reductions of capital, a powerful mechanism enabling a company to return surplus capital to shareholders by coupling with share buyback, write off accumulated losses against stated capital, or simplify a complex capital structure. Undertaken by special resolution and, where required, court confirmation, a capital reduction can fundamentally reposition a company’s balance sheet. Share buybacks provide a related tool, enabling a company to repurchase its own shares from the market or from specific shareholders, concentrating ownership and returning value without a formal dividend.

At the structural level, amalgamations under the Companies Act allow two or more companies to be fused into a single combined unit with assets, liabilities, and undertakings succeeded to by the amalgamated company by operation of law.

Schemes of arrangement, sanctioned by court, offer a flexible framework for reorganising shareholding, settling creditor claims, or restructuring group entities, provided the requisite statutory majorities and judicial approval are obtained.

Beyond capital, the Act governs the conversion of a company’s legal form, from private to public, from a guarantee company to a share company, as well as the voluntary liquidation and striking off of entities that have served their structural purpose within a group.

Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, No. 12 of 2026: Restructuring under stress

Successful corporate restructuring is about more than just knowing the law; it is about using the right tools to solve the right problems. Whether you are navigating the Companies Act, managing financial distress under the new insolvency laws, or handling cross-border regulations, each step requires careful planning. Most importantly, tax considerations should never be an afterthought, they must be a part of the initial strategy to ensure the process adds real value rather than unnecessary costs

The Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act introduces a distinct and specialised set of tools for companies navigating financial distress.

At the pre-insolvency end of the spectrum, the rescue procedure provides a court-sanctioned statutory moratorium, a suspension of creditor enforcement actions, during which a licensed insolvency practitioner is appointed to assess the viability of the business and formulate a rescue plan. The rescue plan itself is a remarkably flexible restructuring instrument: it may provide for the full or partial write-off of debt, the conversion of debt to equity, deferred or rescheduled payment arrangements, the disposal of non-core assets, operational downsizing, or any combination thereof, subject to approval by the prescribed majority of creditors.

Where a company or individual is insolvent but retains underlying viability, the rehabilitation procedure offers a court-supervised framework for structured repayment and reorganisation, balancing creditor recovery with the preservation of the enterprise as a going concern.

For companies beyond rehabilitation, corporate liquidation , whether voluntary or court-ordered, governs the orderly realisation of assets and the settlement of creditor claims in the statutory order of priority; within a group restructuring context, the deliberate liquidation of a redundant or loss-making subsidiary can itself constitute a purposeful restructuring step.

Cutting across all of these procedures is a critical tax dimension: the Act amends Section 175(6) of the Inland Revenue Act to confer super-priority status on APIT obligations arising after the appointment of an insolvency practitioner, ranking such obligations ahead of secured and unsecured creditors alike, a provision that carries direct and material consequences for the design of any rescue or rehabilitation transaction.

Capital markets as a restructuring vehicle

For listed companies, the Securities and Exchange Commission Act and the Listing Rules of the Colombo Stock Exchange introduce an additional layer of both constraint and opportunity. Initial public offerings and secondary listings are themselves restructuring events, transforming the shareholder structure and the governance architecture of an enterprise.

Takeovers and mandatory offers, governed by the SEC’s Takeovers and Mergers Code, regulate the acquisition of controlling interests and trigger obligations that must be carefully navigated in any share-based restructuring. Rights issues by listed companies are subject to SEC oversight, as are share buybacks conducted through the exchange. The substantial acquisition of shares and the disclosure of material interests impose transparency obligations that shape the sequencing and structure of any group reorganisation involving a listed entity.

Foreign Exchange Act No. 12 of 2017: Managing the cross-border dimension

Where restructuring has an international dimension, whether through foreign shareholders, cross-border intra group transfers, offshore financing arrangements, or the repatriation of dividends, the Foreign Exchange Act becomes a central regulatory framework.

Inward and outward remittances, the issuance of shares to non-residents, the grant of intragroup loans across borders, and the pledging of Sri Lankan assets to foreign lenders all require Central Bank approval or compliance with the relevant directions issued thereunder.

A restructuring that overlooks foreign exchange rules, whether at the design stage or in execution, risks regulatory non-compliance that can unwind an otherwise sound transaction.

Structuring intragroup obligations

Less commonly considered in restructuring discussions, the Bills of Exchange Ordinance nonetheless plays a practical role in formalising intragroup financial arrangements. Promissory notes and bills of exchange are instruments frequently employed to document intra group loans, deferred consideration obligations, and vendor financing arrangements within a restructured group. Their proper execution, endorsement, and enforcement are governed by the Ordinance, and their characterisation has direct implications for stamp duty exposure and, in certain circumstances, withholding tax obligations on interest payments.

The art: Deploying the right tool

Knowledge of the toolkit is only the starting point. The art lies in selecting and combining the appropriate instruments to suit a specific set of commercial, legal, and financial circumstances.

A restructuring designed to separate a profitable subsidiary from a distressed holding entity demands a different configuration from one intended to consolidate group shareholding ahead of a capital markets transaction.

A management buyout calls for different instruments than a cross-border intra group reorganisation. The skilled practitioner reads the circumstances, the commercial objective, the stakeholder map, the regulatory environment, the timeline, the exit horizon, and constructs a solution that is both legally coherent and commercially effective.

The tax dimension: Where success or failure is determined

If science and the art define the framework, it is the tax dimension that ultimately determines whether a restructuring succeeds or fails. Every instrument in the toolkit carries tax consequences.

Capital reductions, amalgamations, and in-specie distributions each may or may not trigger income tax analysis, particularly around capital gains, and the application of transfer pricing rules to intragroup transactions.

Stamp duty is attached to certain instruments. VAT implications arise where asset transfers are structured as going concern disposals or where in-specie distributions involve taxable supplies.

Withholding tax obligations on dividends, interest, and royalties must be mapped against any applicable double tax treaties where cross-border elements exist.

The Exchange Control dimension adds a further layer: the tax treatment of remittances and the characterisation of intragroup funding as debt or equity can differ significantly across regulatory frameworks.

Failure to integrate tax planning from the earliest stage of restructuring design, not as an afterthought but as a foundational input, can transform a commercially sound transaction into a costly liability. Conversely, a well-structured, tax-efficient reorganisation creates genuine and durable value.

In short, successful corporate restructuring is about more than just knowing the law; it is about using the right tools to solve the right problems. Whether you are navigating the Companies Act, managing financial distress under the new insolvency laws, or handling cross-border regulations, each step requires careful planning. Most importantly, tax considerations should never be an afterthought, they must be a part of the initial strategy to ensure the process adds real value rather than unnecessary costs. By balancing technical knowledge with practical, clear-headed decision-making, professionals can effectively guide companies through change and position them for long-term stability.

(The author, an Attorney-at-Law (LLB), FCMA(UK), CGMA, FCMA, was awarded Tax Practice Leader of the Year 2024 (ASPAC) by International Tax Review (ITR) and was a top-four finalist for Tax Litigation and Disputes Practice Leader of the Year)

Colombo Dockyard enters new growth phase at landmark 43rd AGM

Colombo Dockyard PLC (CDPLC) successfully concluded its 43rd Annual General Meeting (AGM) on 25 June 2026, marking its first AGM following the acquisition of a majority stake by Mazagon Dock Shipbuilders Ltd., (MDL), India.

The Company said the new strategic alignment with MDL is expected to unlock fresh growth avenues, enhance technical capabilities, and strengthen Colombo Dockyard’s competitive position in the regional maritime sector.

A key priority going forward will be expanding its footprint in the Indian market, leveraging MDL’s strong industry linkages. Colombo Dockyard is targeting deeper engagement with major Indian maritime players, including the Dredging Corporation of India (DCI) and the Shipping Corporation of India (SCI), as part of its growth strategy.

Chairman Capt. Jagmohan (Retd) described the partnership as a significant turning point, positioning the Company to scale operations and capture new market opportunities. He also expressed total confidence in the current Colombo Dockyard management team and workers to turn around the Company.

From left: S. Senthi Nandhanan, Vish Govindasamy, Chathura Wickrematileka, Ruchir Agrawal, Managing Director and CEO Thimira S. Godakumbura, Chairman Capt. Jagmohan (Retd), Biju George, Chaminda Gunasinghe, Chanaka Jayamaha, and Dilrukshi Kurukulasuriya

Managing Director and CEO Thimira S. Godakumbura presented the annual review of operations and outlined the Company’s forward outlook, highlighting steady performance across shipbuilding, ship repair, and heavy engineering segments despite a challenging global environment. He emphasised a renewed focus on market expansion, operational efficiency, and capitalising on opportunities arising from stronger Indo-Sri Lanka maritime collaboration.

Shareholders approved all resolutions at the AGM, including the adoption of financial statements and other statutory matters.

With MDL’s backing, Colombo Dockyard is positioning itself to accelerate growth, deepen regional integration, and reinforce its role as a leading maritime hub in the Indian Ocean – continuing its odyssey of excellence.

The new Board of Directors include Chairman Capt. Jagmohan (Retd), Managing Director and CEO Thimira S. Godakumbura, Ruchir Agrawal, Biju George, Vish Govindasamy, S. Senthi Nandhanan, Dilrukshi Kurukulasuriya, Chaminda Gunasinghe, Chathura Wickrematileka and Chanaka Jayamaha.

Kapila to step down as SDB bank CEO in October, Manoj to succeed

SANASA Development Bank PLC (SDB bank) has announced that Executive Director/CEO Kapila Ariyaratne will step down from his position with effect from 6 October 2026, in accordance with the terms of his contractual arrangement with the Bank.

He will concurrently cease to serve on the Board of Directors on the same date.

SDB bank also announced Manoj Akmeemana, presently serving as Deputy Chief Executive Officer, as Chief Executive Officer with effect from 7 October 2026 subject to the approval of the Central Bank of Sri Lanka, This transition is in line with the Bank›s formally approved succession plan for the position of Chief Executive Officer.

Akmeemana was appointed as Deputy CEO in January this year. He is a highly accomplished banking professional with over 35 years of experience in the financial services sector. Prior to joining SDB bank, Akmeemana held several senior leadership roles at Sampath Bank PLC, building a reputation for delivering results in complex, high-impact functions spanning credit, risk, and operational oversight. He last served as Senior Deputy General Manager – Credit Control, Credit Administration, Recoveries and Legal, leading teams focused on strengthening credit discipline, improving monitoring frameworks, and ensuring alignment with regulatory and internal policy requirements.

Kapila, a renowned banking professional with extensive experience in the financial sector, joined SDB bank as CEO in October 2024. Previously he served as the Director/Chief Executive Officer of Seylan Bank PLC for over a decade. Prior to that he served at Nations Trust Bank PLC, People’s Bank PLC, ABN Amro Bank, Arab National Bank (Saudi Arabia), and Mashreq Bank in Sri Lanka.

Sampath Bank launches first real-time USD payment solution for Sri Lanka Ports Authority users

Sampath Bank PLC and Sri Lanka Ports Authority (SLPA) have jointly launched the first real-time USD payment solution for the maritime industry, eliminating traditional manual payment processes and streamlining foreign currency transactions across the country’s shipping and logistics ecosystem.

The initiative marks another industry-first innovation from Sampath Bank and a significant step forward in the digitalisation of trade-related financial services.

Powered by Sampath Bank’s FC Quick Connect platform, the solution enables shipping lines, freight forwarders, logistics providers and other port users to make instant USD payments to the SLPA, with real-time settlement and automated notifications improving speed, transparency and operational efficiency across the sector.

Developed in response to the Ports Authority’s transition to USD-based billing for selected services, the initiative addresses a long-standing need for a faster and more reliable payment mechanism capable of handling growing transaction volumes within the industry.

The platform integrates Sampath Bank’s transaction banking capabilities and digital infrastructure to deliver an end-to-end digital payment experience, replacing traditional manual payment processes with instant settlement and real-time visibility for both customers and the SLPA.

Sampath Bank PLC Managing Director/CEO Sanjaya Gunawardana said: ‘The collaboration demonstrates how private-sector financial institutions and public-sector organisations can work together to remove operational bottlenecks and improve efficiency in critical economic sectors. The solution delivers secure, real-time payment capabilities that enhance convenience, strengthen transparency and support the continued modernisation of port-related services. As another industry-first innovation from Sampath Bank, this initiative reflects our commitment to developing technology-led financial solutions that respond to evolving industry needs while supporting national economic priorities.’

SLPA Chairman Dr. Parakrama Dissanayake said: ‘Digital transformation within the maritime sector is essential to strengthening Sri Lanka’s position as a regional logistics hub. Sampath Bank has consistently demonstrated a strong commitment to innovation, and this initiative represents another important milestone in advancing digitalisation across the country. More than a banking solution, it is a strategic initiative that will enhance efficiency, effectiveness and competitiveness within Sri Lanka’s maritime sector.’

Beyond addressing immediate payment requirements, the solution establishes a scalable framework that can be extended to other port operators and maritime service providers in the future. Its implementation is expected to enhance customer experience, improve cash flow efficiency and support faster trade facilitation across the industry.

CAASL assumes chairmanship of Cooperative Aviation Security Program – Asia Pacific

The Civil Aviation Authority of Sri Lanka (CAASL) successfully inaugurated the 21st Steering Committee Meeting (SCM) of the Cooperative Aviation Security Program – Asia Pacific (CASP-AP) on 23 June 2026 in Negombo, Sri Lanka, bringing together aviation security leaders, policymakers, and technical experts from across the Asia-Pacific region.

A key highlight of the Opening Ceremony was the official transfer of the CASP-AP Chairmanship from Singapore to Sri Lanka. During the ceremony, Captain Daminda Rambukwella, Director General of Civil Aviation and Chief Executive Officer of the Civil Aviation Authority of Sri Lanka, assumed the Chairmanship of CASP-AP for the 2026-2027 term. This significant milestone reflects the confidence placed in Sri Lanka’s leadership within the regional aviation security community and underscores the country›s growing role in advancing aviation security cooperation across the Asia-Pacific region.

Addressing the gathering, Captain Daminda Rambukwella reaffirmed Sri Lanka’s commitment to maintaining the highest standards of aviation security and highlighted the importance of collaboration, innovation, and knowledge-sharing in responding to evolving security challenges. He emphasised that strong regional partnerships remain essential to ensuring the safety, security, and resilience of the global aviation system.

The 21st CASP-AP Steering Committee Meeting has attracted more than 70 delegates representing 22 Member States and participating States, including the United States of America, Australia, New Zealand, Malaysia, Singapore, Hong Kong (China), Viet Nam, and several South Asian countries, together with representatives from across the Asia-Pacific region. The meeting also welcomed representatives from the International Civil Aviation Organisation (ICAO), including officials from the ICAO Asia and Pacific Regional Office in Bangkok, Thailand, and ICAO Headquarters in Montreal, Canada, together with senior officials of the Civil Aviation Authority of Sri Lanka (CAASL) and representatives of regional aviation organisations. The strong international participation underscores the importance of regional collaboration and collective efforts to strengthen aviation security across the Asia-Pacific region.

ICAO Asia and Pacific Office Regional Director Tao Ma commended Sri Lanka for its continued commitment to strengthening aviation security and fostering regional cooperation. He emphasised the importance of collaborative efforts among Member States in addressing evolving aviation security challenges and acknowledged the valuable contribution of CASP-AP in enhancing aviation security capabilities across the Asia-Pacific region. He also congratulated Sri Lanka on assuming the CASP-AP Chairmanship and expressed confidence in the country›s leadership in advancing the program›s objectives during its tenure.

As the principal decision-making body of CASP-AP, the Steering Committee Meeting plays a vital role in reviewing program activities, setting strategic priorities, promoting capacity-building initiatives, and enhancing collaboration among Member States. The forum provides an important opportunity for stakeholders to address emerging aviation security challenges, exchange best practices, and support the effective implementation of international aviation security standards and recommended practices.

The Opening Ceremony was attended by Ports and Civil Aviation Minister Aruna Karunathilake, Deputy Minister Eng. Janith Kodithuwakku, Ministry Secretary W.W.S. Managala, Civil Aviation Authority of Sri Lanka Chairman Sunil Jayaratne, Director General and CEO Captain Daminda Rambukwella, ICAO Asia and Pacific Office Regional Director Tao Ma, and representatives Lita Lee, Tony Blackiston, Wee Sihui Glory, Civil Aviation Authority of Singapore Acting Deputy Director-General and CASP-AP outgoing Chair together with distinguished delegates representing CASP-AP Member States, participating States, and partner organisations.

The Steering Committee Meeting will review the progress of CASP-AP activities, discuss strategic priorities, evaluate ongoing projects, and identify future initiatives aimed at further strengthening aviation security throughout the Asia-Pacific region. The deliberations will facilitate the exchange of experiences, best practices, and technical expertise among participating States and organisations.

The first day of the meeting concluded successfully with productive discussions and active participation from delegates, reaffirming the collective commitment of CASP-AP Member States to maintaining robust and effective aviation security frameworks throughout the region.

As the host State and newly appointed Chair of CASP-AP, Sri Lanka remains committed to working closely with ICAO, CASP-AP Member States, and international partners to promote a safe, secure, and sustainable aviation environment across the Asia-Pacific region.

Shanakiyan questions mineral licences, seeks transparency on foreign investor gains

Ilankai Tamil Arasu Kachchi (ITAK) MP Shanakiyan Rasamanickam last week called for greater transparency over the country’s mineral exploration and mining sector, raising concerns in Parliament about whether foreign-linked companies are profiting from the country’s mineral resources without delivering adequate benefits to the public.

In a post on ‘X,’ Rasamanickam noted he questioned the Government on its National Mineral Policy and the issuance of mineral exploration and mining licences. Among the issues raised was whether companies that secured exploration rights had subsequently used those licences to raise capital, attract investors, transfer ownership interests, or obtain listings on foreign stock exchanges.

He also sought information on royalty income earned by the State, environmental assessments related to mining activities, pending licence applications, and concerns raised by communities in areas including Vakarai, Thirukkovil, and Akkaraipattu.

According to Rasamanickam, the Minister was unable to provide answers during the parliamentary session and requested two weeks to respond.

‘Before more licences are issued, the public deserves to know who is benefitting from Sri Lanka’s mineral wealth and whether the economic returns justify the environmental and social costs borne by local communities,’ he added.

CICT wins AFLAS Award for 10th consecutive year

Colombo International Container Terminals (CICT) has been named Best Container Terminal – Asia (Under 4 million TEUs) at the 2026 Asian Freight, Logistics and Supply Chain (AFLAS) Awards, becoming the first terminal to secure the prestigious title for 10 consecutive years.

The achievement reinforces CICT’s standing among Asia’s leading container terminals while further strengthening Colombo’s position as a premier regional transhipment hub.

The award was presented at the AFLAS Awards ceremony held on 24 June 2026 in Shanghai, where leading freight, logistics and supply chain organisations from across the Asia-Pacific region were recognised for excellence in service, operational performance, innovation and customer satisfaction.

The milestone reflects a decade of consistent recognition from customers and industry stakeholders across the region, affirming CICT’s reputation as a trusted gateway for global shipping lines and cargo owners serving South Asia and the Indian Ocean.

CICT Chief Executive Officer Jan Zhang said: ‘Winning the AFLAS Award for the 10th consecutive year is a significant achievement not only for CICT, but also for Sri Lanka’s maritime industry. This recognition reflects a decade of consistent performance, customer confidence and operational excellence. It is also a testament to the strategic leadership and strong support of China Merchants Port Group, together with the continued guidance and partnership of the Sri Lanka Ports Authority. Together, we have built a terminal that continues to set high standards in operational excellence, service quality and innovation while strengthening Colombo’s competitiveness as a leading maritime hub in the region. As global supply chains continue to evolve, we remain committed to investing in technology, people and sustainable development to create greater value for our customers and stakeholders.’

Hosted annually by Asia Cargo News, the AFLAS Awards are among the freight and logistics industry’s most respected accolades. Winners are selected through a rigorous three-stage process comprising industry nominations, technical evaluation and final voting by freight forwarders, logistics professionals, shippers and supply chain stakeholders from across Asia and the Pacific.

Since commencing full operations in 2014, CICT has grown from handling approximately 680,000 TEUs in its first year to processing more than 3 million TEUs annually, making it one of South Asia’s largest and most efficient container terminals. Today, the terminal handles a significant share of the Port of Colombo’s container throughput and plays a pivotal role in sustaining Colombo’s position as one of the Indian Ocean’s leading transhipment hubs.

As a member enterprise of China Merchants Port Group and a landmark public-private partnership with the Sri Lanka Ports Authority, CICT combines international port management expertise with Sri Lanka’s maritime strengths to operate one of South Asia’s most advanced deep-water container terminals. The continued strategic leadership of China Merchants Port Group and the guidance and partnership of the Sri Lanka Ports Authority have been instrumental in driving CICT’s sustained operational excellence, long-term growth and international competitiveness.

CICT’s world-class infrastructure includes an 18-metre-deep quay, 1,200 metres of berth length, 14 quay cranes and 46 electric RTG cranes. Supported by strong quay crane productivity, high operational efficiency and competitive vessel handling performance, the terminal accommodates some of the world’s largest container vessels while delivering reliable, efficient and customer-focused service.

As part of its long-term development strategy, CICT continues to advance its smart port transformation through investments in equipment electrification, digitalisation and AI-enabled operational improvements. These initiatives are enhancing productivity, optimising asset utilisation, improving energy efficiency and strengthening service reliability, while supporting the terminal’s sustainability objectives and its ability to meet the evolving needs of global shipping lines and cargo owners.

The latest AFLAS recognition not only celebrates CICT’s sustained commitment to operational excellence, innovation and customer service, but also reflects the growing competitiveness of Sri Lanka’s maritime and logistics sector and the success of the long-standing partnership between China Merchants Port Group and the Sri Lanka Ports Authority in positioning Colombo as one of the Indian Ocean’s leading transhipment hubs.

CICT is a joint venture between China Merchants Port Holdings Company Ltd., and the Sri Lanka Ports Authority (SLPA). Developed under the Colombo South Harbour Expansion Project on a 35-year Build-Operate-Transfer (BOT) agreement, CICT operates South Asia’s first deep-water container terminal capable of handling the world’s largest container vessels.

Daree or The Cave by Bertram Nihal: Has it created a new genre to take Sinhala cinema to the world?

The trio, Dr. Bandula Gunawardena, H. D. Premasiri, and Ravindra Guruge, have done it again.

Out of sheer generosity, rather than any expectation of profit, they have jointly financed a new Sinhala film, since making money is uncertain in the kind of cinema they choose to support. In the past, each of them has been at the forefront of financing more than a dozen artistic Sinhala films. This time, their support has gone to the celebrated teledrama director Dr. Bertram Nihal, who has adapted for the screen Upananda Welikala’s award-winning novel Karma Charikawa, or A Karmic Travel.

The poetic meaning of the Sinhala title Daree is ‘daughter’, but Nihal has chosen the English title The Cave. For the uninitiated moviegoer, who expects everything to be stated directly, this may at first appear confusing. If a film requires the viewer to do a little research to discover the meaning intended by its creator, the initial enjoyment may be affected. Yet, once the connection between the Sinhala and English titles is discovered, it deepens the viewer’s appreciation of the film.

The daughter is the central character around whom the plot is woven; she is also the victim. The cave, by contrast, is a metaphor for the place where truth is hidden: the dark depths of human consciousness and memory. In that sense, the title relates directly to Buddhist philosophy, in which a karmic act committed by a person follows them throughout life, just as the wheel of a cart follows the cart. There is no way to keep it secret.

As Nihal tells us through the words of the chief incumbent of the forest meditation centre, only the dead can keep a secret. However hard we try to conceal it, our own mind, driven by a guilt complex, brings it back to the surface, like a rubber ball pushed under water that rises again once the force holding it down is released.

Movies to promote services sector exports

Since Sri Lanka’s merchandise exports appear to have reached their natural limit, the country is now planning to concentrate on developing the services sector as a potential source of export earnings.

However, the Government’s new Export Development Plan for 2026-2030 does not recognise entertainment, or movies, as a direct contributor to the growth of the country’s services sector.

Instead, it has identified information technology and wellness tourism as priority areas, along with several non-traditional merchandise sectors such as auto components, mineral-based industries, rubber-based industries, marine-based industries, spices and concentrates, electrical and electronic components, and processed food and beverages.

These sectors require the application of advanced technology to produce for global markets and are currently dominated by developed countries that possess such technology and continuously update it. In this context, the development of the entertainment sector, especially movie production for global markets, is an area that should receive the attention of policymakers.

Since Sri Lanka’s merchandise exports appear to have reached their natural limit, the country is now planning to concentrate on developing the services sector as a potential source of export earnings. However, the Government’s new Export Development Plan for 2026-2030 does not recognise entertainment, or movies, as a direct contributor to the growth of the country’s services sector

Global movie marketorsing award-winning filmmaker Asoka Handagama’s proposal to establish a Sri Lankan-style Oscar award system, I argued as far back as 20131 that Sri Lanka should consider promoting movie exports to the rest of the world as a means of diversifying the country’s services exports.

Handagama had presented an unconventional blueprint for developing Sri Lanka’s movie industry, not merely for domestic consumption but also to meet demand in global markets, a suggestion that critics might describe as ‘the globalisation of Sri Lanka’s national film industry.’

He proposed that Colombo should host an international film festival modelled on the Busan International Film Festival in South Korea, which began in 1995. His goal at the time was to use the Colombo Port City as the venue for the proposed Sri Lankan film festival. I argued that the global entertainment industry is one of the largest industries in the world because it forms part of an individual’s final consumption bundle.

The movie reminds me of a psychological thriller created by the veteran film director Alfred Hitchcock. In this way, Nihal has attempted to penetrate global movie markets through Sinhala cinema. It is an endeavour that should be supported by all

After consuming every other good or service, people turn to entertainment for the final release of stress. According to estimates by Mordor Intelligence, a global market research and management consulting firm, the global media and entertainment industry, valued at $ 3.1 trillion in 2026, is expected to rise to $ 3.8 trillion by 2031. The current size of the global movie and video industry has been estimated by other analysts at around $ 361 billion, more than three times Sri Lanka’s total GDP in 2025. Hence, this is a major profit opportunity that no country can afford to overlook.

South Korean leadership

South Korea, especially after the 1997 Asian financial crisis, took deliberate steps to develop its entertainment industry and capture global markets. These measures included strategic State support, the abolition of censorship, the adoption of the Hollywood model, the creation of streaming and digital platforms, and the pursuit of international acclaim.

To fund and promote Korean cinema aggressively abroad, the Korean Film Council was established in 1997. Strict authoritarian censorship was gradually lifted after the 1980s as the country moved towards democratic rule. In adopting the Hollywood model, South Korea encouraged the emergence of large, integrated media conglomerates. The establishment of global streaming platforms also helped attract major multimedia firms such as Netflix. At the same time, the industry gained global prestige through major wins at international film festivals.

These developments enabled South Korea’s audiovisual industry to contribute about $ 16.4 billion to its GDP. Sri Lanka could similarly penetrate global markets by aligning itself with stronger performers such as India and South Korea.

Challenge of making artistic movies

In this connection, the contribution made by the Gunawardena-Premasiri-Guruge trio to financing quality Sri Lankan films is commendable. Commercial films that are popular among moviegoers are usually self-financing because they generate enough revenue for producers to recover their costs.

Artistic films, however, stand at the opposite end of the spectrum. They do not earn enough at the box office, and producers are therefore likely to incur losses. The rewards are not monetary but come in the form of subjective satisfaction, especially when such films win awards at local and international film festivals.

As a result, a producer of an artistic film usually undertakes the project not in the hope of making money, but for the recognition it can bring at film festivals. That mental satisfaction is valued at the highest level.

By grounding an abstract narrative structure in the rich emotional soil of Karma Charikawa, the film delivers an experience that is intellectually demanding and emotionally shattering. It stands as a vital piece of art for viewers seeking cinema that challenges the intellect, redefines narrative boundaries, and lingers in the mind long after the final credits roll

A deep psychological exploration

I find Daree, created by Bertram Nihal, to mark a highly ambitious milestone in contemporary Sinhala cinema, blending a gripping crime investigation with a deep avant-garde psychological exploration. It moves far beyond the conventional boundaries of a standard whodunit thriller.

Instead, it dissects the very architecture of the human mind, reconstructing how a crime originates, fractures, and preserves itself within memory. Inspired by true events and structurally adapted from Upananda Welikala’s acclaimed novel Karma Charikawa, the film functions as a masterclass in philosophical tension. It uses a unique narrative framework reminiscent of quantum superposition, where past, present, and parallel possibilities coexist until the ultimate truth is forced to emerge through direct observation.

Narrative structure and plot evolution

On its surface, the movie tracks a protagonist deeply embedded in a chaotic and unsettling criminal investigation. The discovery of a central crime acts as the catalyst, propelling the characters into a labyrinth where the physical search for clues mirrors an agonising descent into the self. As the narrative progresses, the traditional procedural tracking of evidence is discarded in favour of a psychological battleground.

The film shifts effortlessly between timelines. Rather than treating flashbacks as simple explanatory tools, Bertram Nihal treats time as fluid and subjective. The investigation transforms into a visceral confrontation with heavy guilt, repressed trauma, and severe moral ambiguity.

Every clue discovered by the protagonist is deliberately designed to operate on two distinct levels: an external physical reality and an internal psychological dimension.

The audience is never permitted to remain passive observers; every piece of dialogue and every shift in scenery demands active deconstruction, effectively positioning the viewer as a co-investigator of the human conscience.

Handagama had presented an unconventional blueprint for developing Sri Lanka’s movie industry, not merely for domestic consumption but also to meet demand in global markets, a suggestion that critics might describe as ‘the globalisation of Sri Lanka’s national film industry.’ He proposed that Colombo should host an international film festival modelled on the Busan International Film Festival in South Korea, which began in 1995

The influence of Karma Charikawa

Adapting Karma Charikawa allows Nihal to layer the screenplay with profound Eastern philosophical subtext, specifically centring on the inescapable cycle of action and consequence (karma). However, the film avoids becoming a dogmatic sermon. By pairing these karmic undertones with modern psychological theory and concepts from quantum physics, the script achieves universal resonance.

The narrative treats human choice as a series of branching paths. The characters are caught in a web where an act committed in a moment of madness reverberates across their past perceptions and future possibilities. This philosophical gravity elevates Daree from a regional suspense story to a timeless commentary on the fragility of human morality.

Characterisation of psychological depth

The characters in Daree are far from archetypal heroes or villains; they are deeply flawed, fractured individuals grappling with their own shadows. The protagonist’s journey is particularly harrowing, as the outer chaos of the crime begins to leak into his own psyche, unearthing buried anxieties and ethical conflicts.

The performances are grounded in raw emotional realism. Nihal demands intense restraint from his cast, emphasising micro-expressions, heavy silences, and loaded glances over grand theatrical outbursts. This muted, internal approach amplifies the claustrophobic tension of the film, making the psychological distress of the characters intensely palpable to the audience. The supporting characters add layers of systematic doubt, leaving the viewer perpetually uncertain of who holds the definitive truth, or whether a singular truth even exists.

Direction, cinematic language and aesthetics

Bertram Nihal leverages his decades of expertise as a pioneering visualiser and award-winning television director to deliver a visually stunning cinematic landscape. The film’s alternative title, The Cave, serves as a powerful visual and metaphorical anchor throughout the runtime.

The camerawork treats physical spaces, shadowy rooms, dense landscapes, and tight enclosures as extensions of the characters’ internal mental states. Nihal’s visual style relies on three filmmaking techniques. First, deep shadows and stark lighting contrasts symbolise the ongoing clash between hidden guilt and exposed truth. Second, tight, claustrophobic close-ups trap the characters within the screen, emphasising their psychological entrapment. Third, desaturated tones establish a sombre, haunting atmosphere that mirrors the moral decay at the heart of the story.

The pacing is deliberate, slow-burning, and meticulous. Nihal rejects rapid, low-effort jump scares, choosing instead to construct a thick, unbroken wall of atmospheric dread. The editing serves the film’s quantum-inspired structure beautifully, cutting across timelines in a manner that feels jarring yet entirely logical within the realm of human memory.

Soundscapes and sonic tension

The auditory design of Daree plays an indispensable role in maintaining its gripping suspense. The soundtrack avoids overly dramatic orchestral sweeps, opting instead for a minimalist, avant-garde score rich with ambient textures, sudden dissonances, and prolonged silences. The sound design maximises the impact of everyday noises, footsteps, echoes, heavy breathing, and dripping water, transforming them into symbols of psychological torment. This careful orchestration ensures that the sonic environment acts as an invisible antagonist, constantly tightening the emotional screws on both the characters and the audience.

I find Daree, created by Bertram Nihal, to mark a highly ambitious milestone in contemporary Sinhala cinema, blending a gripping crime investigation with a deep avant-garde psychological exploration. It moves far beyond the conventional boundaries of a standard whodunit thriller

Thematic brilliance: Truth and superposition

The thematic core of Daree lies in its radical interrogation of objective reality. By invoking the metaphor of quantum superposition, Nihal posits that history and guilt are not fixed points, but malleable constructs shaped by perception.

The film argues that human memory is highly unreliable, frequently rewritten by guilt to shield the ego from unbearable truths. When the truth finally crystallises in the climax, it does not bring standard cinematic catharsis. Instead, it leaves the audience with a profound, lingering sense of discomfort, forcing them to reflect on the nature of justice, human cruelty, and the thin line that separates an ordinary citizen from a criminal.

Final word

Daree, or The Cave, is a monumental achievement in modern Sri Lankan cinema. Bertram Nihal has successfully bypassed the predictable tropes of mainstream commercial cinema to construct an intellectual, deeply atmospheric psychological masterpiece. By grounding an abstract narrative structure in the rich emotional soil of Karma Charikawa, the film delivers an experience that is intellectually demanding and emotionally shattering. It stands as a vital piece of art for viewers seeking cinema that challenges the intellect, redefines narrative boundaries, and lingers in the mind long after the final credits roll.

The movie reminds me of a psychological thriller created by the veteran film director Alfred Hitchcock. In this way, Nihal has attempted to penetrate global movie markets through Sinhala cinema. It is an endeavour that should be supported by all.

Cabinet clears Rs. 575 m Japanese grant for civil service scholarship program

The Cabinet last week approved the acceptance of a Japanese grant worth Yen 282 million (approximately Rs. 575 million) to continue a scholarship program aimed at strengthening the capacity of Sri Lanka’s public service through postgraduate and doctoral studies.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the funding will be provided by the Government of Japan in 2026 under the Japanese Grant Aid for Human Resource Development Scholarship program.

The initiative has been supporting the professional development of young executive-level civil servants since 2010 by providing opportunities to pursue higher education, acquire professional expertise, and gain international exposure in fields aligned with Sri Lanka’s development priorities.

The program is financed under the Official Development Cooperation framework of the Government of Japan and is implemented by the Japan International Cooperation Agency (JICA).

According to the Government, around 15 civil servants are awarded scholarships annually under the scheme.

Since its inception, the program has facilitated 255 postgraduate courses and 16 doctoral courses for Sri Lankan public sector officials.

Cabinet approval was granted for a proposal submitted by President Anura Kumara Dissanayake in his capacity as Finance, Planning and Economic Development Minister to accept the grant funding offered by the Japanese Government.

The Government said the program has made a significant contribution to strengthening the capacity of the public service by developing specialised knowledge and professional skills among senior public officials.