Category: Daily Financial Times

Sri Lanka’s external current account remained under pressure in May, recording a second consecutive monthly deficit as a sharp rise in import expenditure due to the Middle East war, led by fuel and vehicles, outpaced robust export growth and offset continued strength in workers’ remittances.

According to the Central Bank’s latest External Sector Performance report, the current account recorded a deficit of $ 194.5 million in May, following April’s return to deficit, bringing the cumulative balance for the first five months of 2026 to a deficit of $ 96.7 million, down from a $ 1.29 billion surplus a year ago.

The Central Bank attributed the latest outturn mainly to a widening merchandise trade deficit and a contraction in the services surplus despite stronger remittance inflows.

The merchandise trade deficit widened to $ 967.9 million in May from $ 472.5 million a year earlier as import expenditure rose 45.4% year-on-year to $ 2.19 billion, significantly outpacing the 18.3% increase in merchandise exports to $ 1.22 billion. Over January to May, the trade deficit expanded to $ 4.66 billion from $ 2.73 billion in the corresponding period of last year.

The import bill was driven largely by higher fuel and motor vehicle imports. Fuel import expenditure more than doubled, rising 112% year-on-year to $ 536 million in May amid higher oil prices and import volumes, although it declined 39.5% compared with April.

Meanwhile, expenditure on imported motor vehicles, including personal and commercial vehicles, rose 20% month-on-month to $ 250 million, lifting cumulative vehicle imports during the first five months of the year to $ 1.07 billion.

The Central Bank also said Sri Lanka’s terms of trade deteriorated both in May and over the January-May period as import prices increased faster than export prices.

The services account continued to weaken. Its surplus contracted 36.8% year-on-year to $ 143.2 million in May as services outflows grew faster than inflows, while the cumulative surplus for the first five months declined 20.8% from a year earlier. Total services exports edged up 2.5% year-on-year to $ 475.3 million in May but remained 2.9% lower over the first five months of the year.

Tourism presented a mixed picture. Tourist arrivals increased 9.6% year-on-year in May to 145,745, taking arrivals past the one million mark during January-May. However, estimated tourism earnings declined 5.1% year-on-year to $ 155.7 million in May, while cumulative earnings fell 11.9% to $ 1.36 billion. The Central Bank noted that the Sri Lanka Tourism Development Authority revised its methodology for estimating tourism earnings in May and applied the new methodology retrospectively from January 2026.

Workers’ remittances remained the strongest support to the external account, increasing 32% year-on-year to $ 847 million in May and 26% over the first five months to $ 3.91 billion. The Central Bank noted that these figures may include other remittances, including those received following Cyclone Ditwah.

On the financial account, foreign investors recorded net outflows of $ 60.3 million from the Government securities market and $ 22.6 million from the Colombo Stock Exchange during May.

Gross official reserves stood at $ 6.9 billion at end-May, supported by the jointly disbursed sixth and seventh tranches under the IMF’s Extended Fund Facility despite sizeable external debt service payments and net foreign exchange sales by the Central Bank. The reserve stock provided an import cover of 3.5 months.

The Central Bank also noted that the rupee had depreciated by 7.9% against the US dollar on a year-to-date basis by end-June, reflecting external sector pressures arising from the conflict in the Middle East, while describing the movement as consistent with depreciation trends observed across peer economies.

Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), continued to spike in June as expected due to the impact of the Mideast war.

The Central Bank of Sri Lanka (CBSL) yesterday said headline inflation YoY accelerated to a three-year high 6.8% in June 2026, up from 5.5% in May and 5.4% in April. The rate of inflation was 2.2% in March and 1.6% in February, which was lower than 2.3% in January, after remaining stable at 2.1% in October, November, and December 2025.

CBSL raised the monetary policy rate towards the end of May for the first time since 2023 in a bid to contain credit growth led import demand. It has a 5% inflation target with a margin of ±2 percentage points that it must adhere to by law.

CBSL said non-food inflation (YoY) accelerated to 8.4% in June 2026 from 7.8% in May 2026, contributing mainly to the increase in headline inflation. Food inflation (YoY) also accelerated to 3.6% in June 2026 from 0.9% in May 2026.

On a month-on-month basis, the CCPI recorded an increase of 2.1% in June 2026. This increase was driven by the food category, which contributed 1.4 percentage points, largely owing to the increase in prices of fish and vegetables, while the non-food category contributed 0.7 percentage points.

Meanwhile, core inflation (YoY) accelerated marginally to 4.0% in June 2026 from 3.9% in May 2026.

CBSL said the realised quarterly average inflation for Q2-2026 remained broadly in line with the Central Bank’s recent inflation projections. Inflation projections made at the monetary policy round in May 2026, based on available information and assumptions, indicate that headline inflation is likely to remain above the target of 5% in the period ahead, before easing and stabilising around the target over the medium term, supported by appropriate policy measures.

However, amid the fluid nature of the tensions in the Middle East and the wide-ranging spillovers across both global and domestic economic activity, the domestic inflation outlook remains subject to elevated uncertainty, CBSL noted.

Justice was a keyword and a foundational pledge of Maithripala Sirisena’s 2015 presidential campaign. Candidate Sirisena, Ranil Wickremesinghe, and a bunch of oppositional politicians promised to end the repression and the corruption that had become bywords for Rajapaksa governance, and to bring the perpetrators before the law.

Amongst the high profile corruption cases often touted on campaign platforms was that of Avant Garde Maritime Services. This private military contractor (dubbed Sri Lanka’s Blackwater by some) was registered in 2011 as a subsidiary of Avant Garde Security Services, owned by Nissanka Senadhipathi, a retired army major. Around September 2009, the Lankan Navy had commenced providing security to international vessels. In June 2012, the regime abruptly gifted this lucrative task to the new Avant Garde Maritime Services sans cabinet sanctions or parliamentary oversight.

The most favoured status enjoyed by Avant Garde Ltd under the Rajapaksas came to an end with their defeat at the 2015 presidential election. Investigations of the floating armouries owned by the company began soon after. In mid-January, MV Mahanuwara, a floating armoury belonging to the company, was detained by the police at the Galle Harbour. On 23 January, the passport of Nissanka Senadhipathi was impounded.

In April 2015, the then Deputy Solicitor General (DSG) wrote to the Attorney General a letter titled The Case against Avant Garde Maritime Services and others pertaining to the – Floating Armoury (outed by the website The Colombo Telegraph). The letter itemised three legally actionable offenses: unauthorised importation of fire arms to Sri Lanka, possession of fire arms and ammunitions without valid licence, and conspiracy aiding and abetting to commit the above offenses.

Five suspects were identified, including Nissanka Senadhipathi and Gotabaya Rajapaksa. The DSG’s conclusion was unequivocal: ‘I’m of the view that a strong prima facie case has been established against the said five suspects and that they should be indicted under the above discussed provisions of the law. If you agree with my recommendation, as the first step I recommend that the CID be directed to arrest and produce before the magistrate the five suspects…’ (https://www.colombotelegraph.com/index.php/wijeyadasa-lies-ag-wanted-criminal-prosecution-of-avant-garde/). But no case was filed and no arrests made.

The UNP won the parliamentary election in August 2015. Tilak Marapana was appointed minister of law and order in the new Government. Within weeks, in September 2015, the CID informed the Colombo Magistrate Court that it had failed to find any evidence of misconduct by Avant Garde Ltd and will not go ahead with the case as per instructions of the Attorney General. The court terminated proceedings against the company.

A national uproar ensued. On 4 November, Minister Marapana made a special statement in parliament claiming that this controversy over the termination of proceedings was due to the public’s ‘lack of understanding regarding the floating armoury.’ The floating armoury was in the Galle Harbour legally, he insisted. ‘The police jumped into gain points as soon as the Government changed, similar to the raid on the Millennium City in 2002. That is the reality’ (https://adaderana.lk/news/32941). Outrage mounted. The next cabinet meeting became a shouting match. Several ministers threatened to resign. PM Wickremesinghe was forced to abandon his protégé. Marapana resigned from his portfolio on 9 November.

Marapana was not the only minister who had championed Avant Garde Ltd. Justice Minister Wijeydasa Rajapaksha had also done so. Soon stories began to circulate about a close relationship between Minister Rajapaksha and Senadhipathi. Minister Rajapaksha denied them, challenging JVP leader Anura Kumara Dissanayake and Minister Sarath Fonseka to a debate and promising to resign from his portfolio if the allegations were proved. In early January 2016, Minister Fonseka published a set of 2006 photos showing Messrs Rajapaksha, Senadhipathi and their families enjoying an American holiday together and in style (https://www.dailymirror.lk/print/breaking-news/wijeyadasa/108-98841). Despite this revelation, Rajapaksha continued to function as minister of justice until August 2017.

In October 2015, another Avant Garde floating armoury was seized with 600 unauthorised weapons. In November 2015, President Sirisena ordered the cancellation of all contracts with the company. Avant Garde lost its business but escaped justice.

Favours owed; favours returned

The term ‘state capture’ was birthed by the World Bank in 2000, to explain the effects of mass scale privatisation in the former Soviet Union. The outcome was not the creation of a competitive market but the emergence of a cohort of ‘powerful oligarchs who manipulate politicians, shape institutions, and control the media to advance and protect their own empires at the expense of social interests.’ (https://documents1.worldbank.org/curated/en/537461468766474836/pdf/multi-page.pdf).

The Guardian defined state capture as ‘not corruption of the system but corruption as the system.’ When vested interests such as private companies, political families, and/or lobbying groups acting for foreign powers (like the AIPAC – American Israel Public Affairs Committee) take control of states, these ‘captured states stop being arbiters of public good and become guarantors of elite privilege’ (Forget petty bribes, ‘State Capture’ is corruption so deep it is shaping the rules of democracy itself – 4.11.2025). In countries like ours where religion plays an outsized public/political role, vested interests aiming at state capture can include established clergy.

In Sri Lanka, state capture became a lived reality under the Rajapaksas. The Avant Garde saga was quintessential. As senior journalist Dharisha Bastians wrote in 2015, ‘The shadowy security firm has immensely deep pockets – CID sleuths found the company was raking in up to Rs 15 million daily from its floating armoury operation (this was between 2012 and 2015 when a million had more value than it does today) – and its tentacles reached several tiers deep within the new administration.’ The company had ‘submitted an unsolicited proposal that was authorised without evaluation or tender procedure, by the former Defence Secretary. Weapons were being provided to the maritime security firm that was maintaining floating armouries, through Rakna Arakshaka Lanka Ltd, the Defence Ministry-owned company that was Secretary Rajapaksa’s pet project. In the first flush of investigations, the CID found thousands of extra weapons on-board the Avant Garde than had been authorised by the Defence Ministry’ (https://dbsjeyaraj.com/dbsj/?p=43964).

(A relevant aside: When President Sirisena cancelled all contracts with Avant Garde Maritime Services, the company demanded from the Government-owned Rakna Arakshaka Ltd a Letter of Clearance asserting the legality of the company’s floating armouries. When Rakna Arakshaka Ltd refused to comply, an arbitration case was filed demanding compensation for breach of contract. In May 2019, the Singapore Court of Appeal dismissed the case, ordering Avant Garde to pay Rakna Arakshaka legal costs.)

Avant Garde Maritime Services got its lucrative business back under President Gotabaya Rajapaksa and retained it under President Ranil Wickremesinghe. After almost a year in power, the Government of Anura Kumara Dissanayake cancelled the contract, returning the profitable business to the Navy. Two writ petitions filed by the company were dismissed by the Appeal Court in February 2026. In August 2026, the Navy revealed that the company owed it over 780million rupees for services provided (https://www.facebook.com/NewsfirstEngSL/videos/sri-lanka-navy-breaks-silence-on-floating-armoury-operations-navy-reveals-unpaid/1340800734922274/). Whether the Government or the Navy takes action against the company remains to be seen.

Are the days of State capture over – or not?

In democracies, state capture, to be effective, must have the blessings of all political players. That was how Avant Garde Ltd saved itself from being buried under the 2015 collapse of Rajapaksa power. In his incendiary parliamentary speech of November 2015, Minister Marapana stated that on 10 January 2015 – i.e. the day after the Sirisena-Wickremesinghe Government was sworn in – he met Nissanka Senadhipathi through Minister Vajira Abeywardena. Subsequently, Marapana admitted that this meeting led to him being retained by the company as its lawyer and that he functioned in that capacity until he was sworn in as Minister of Law and Order in August 2015. With minister in charge of the police as its lawyer and the minister in charge of the AG’s Department as its friend, is it surprising that Avant Garde Ltd escaped justice?

Perhaps Senadhipathi has no such friends in the current Government. Perhaps this Government is not vulnerable to pressure by Avant Garde Ltd for there are no IOUs to be repaid. But this doesn’t necessary mean that this Government is invulnerable to pressure from all vested interests seeking to use state power for private gain.

In May 2025, underworld kingpin Nadun Chintaka Karunaratne alias Harak Kata, while being brought to court, shouted to the waiting journalists that he was being held in the Tangalle prison because he did not pay the 300 million rupee-bribe demanded by former minister of public security Tiran Alles and former IGP Deshabandu Tennakoon. After this public revelation, the police stated that they had begun an investigation into the matter. The question is, why did the police wait until that public statement to begin an investigation? Surely, this can’t be the first time they heard the allegation against Messrs Alles and Deshabandu? Surely, Karunaratne would have made that allegation when the new Government came to power, and especially after Tennakoon fell out of favour?

That incident happened over a year ago. What happened to the promised investigation? Did it vanish into the Lankan version of Bermuda Triangle (where so many high profile investigations go to die) because it involved former minister Tiran Alles? After all, the Government has already demonstrated a worrying willingness to stretch/bend the law in favour of its own allies/favourites. If it can happen with monk Pallegama Hemaratana, it can happen with others too. If so state capture will have a new season, same drama, different actors.

What do they believe in?

During the 2025 Democratic primary debate for New York mayoralty, contenders were asked which foreign country they would visit first as mayor of New York. As on cue, every contender answered Israel. The only exception was Zohran Mamdani who said that as mayor of New York, he wouldn’t be visiting any foreign country; he’ll stay in the city and look after the needs of all New Yorkers, including Jewish New Yorkers.

The New York city has the largest Jewish population outside Israel. The received wisdom was that an absolute majority of these Jewish New Yorkers would not vote for a candidate who wasn’t pro-Israeli. Mamdani’s answer therefore carried a significant risk to his neophyte candidacy. Yet, he stuck to what he believed, refusing to lie for the sake of a win. That rare authenticity would become a key factor in his eventual victory.

The Sirisena-Wickremesinghe administration promised to end political murders, corruption and nepotism. It kept the first promise but failed to keep the other two. After a relatively successful first year, it began to go downhill. The reason was simple: the Government had no belief in its own mandate. It was, in that sense, a Government of unbelievers. And the Government leaders’ lack of belief in their own much touted promises caused the electorate to lost its own collective belief in the Government. Inauthenticity led not to victory but to defeat.

Chandrika Bandaranaike Kumaratunga deserves commendation for being the only national level politician with the courage to speak out about the Pallegama Hemaratana scandal. She recently attributed the silence on the part of almost all other politicians to their fear of losing votes. It might be more correct to say that politicians on both sides of the aisle are more fearful of antagonising a powerful vested interest group – the Sangha.

The Opposition’s promises regarding the rule of law, justice, and equality before law have become somewhat threadbare due to its past performance. But the Government had a reputation to lose, and showed no hesitation in losing it. In the Pallegama Hemaratana case which pitted a socio-economically powerful monk against a poor and an unprotected child, the Government sided instinctively with the elite accused rather than the non-elite accuser.

The case has come this far due to public pressure. Without that, the case would have been buried by the Government with the Opposition’s connivance. Monk Pallegama Hemaratana might still be the Atamasthanadhipati while Child X would have joined the ranks of victims for whom justice will always remain a goal too far.

This is not the most corrupt Government in history. That distinction goes to the Rajapaksas. This is not the most tyrannical Government in history. There are many contenders for that title. But this Government might gain both titles someday, because it shows a disturbing capacity to be cavalier about its weightiest pledges and principles. Already promises to abolish the executive presidency and the PTA are dead. Pallegama Hemaratana case indicates that the promise to end corruption and the principle of justice too can be abandoned. Only belief in one’s principles and promises can enable governments to withstand the creeping power of vested interests. And once vested interests succeed in state capture, any infamy becomes possible.

‘Do you believe in anything?’ Abdul El Sayed, epidemiologist turned Democratic senate candidate for Michigan rhetorically asked leaders of his own party during an appearance on the podcast I’ve had it. This is a question valid for all countries, a question that Lankan voters across the political divide should ask their leaders (including religious ones). Do you believe in anything or is power (and wealth) your only divine?

People’s Leasing and Finance PLC (PLC), Sri Lanka’s leading non-banking financial institution and subsidiary of People’s Bank, officially presented its 13th Integrated Annual Report for the financial year 2025/26 to People’s Bank Chairman Professor Narada Fernando at the People’s Bank Head Office on 22nd June 2026.

The Annual Report, themed ‘A Living Network,’ reflects the Company’s commitment to fostering meaningful connections among customers, employees, business partners, investors and communities while creating sustainable value through resilience, innovation and responsible growth. The theme draws inspiration from the interconnected mycelium networks found in nature, symbolising how strong relationships contribute to collective strength, shared prosperity and long-term sustainability.

Continuing its longstanding tradition of reporting excellence, People’s Leasing has published its 13th Integrated Annual Report with a strong focus on transparency, accountability, governance and sustainability. The report provides a comprehensive overview of the Company’s financial and non-financial performance, strategic priorities, value creation process and sustainable growth initiatives during the financial year under review.

This year’s report builds upon the innovative digital reporting initiatives introduced in the previous year, including the AI-powered video chat bot, AI-powered text chat bot, and a series of ten video-based report summaries designed to enhance stakeholder engagement and information accessibility. Expanding on this foundation, the current year introduces several advanced digital accessibility features that further redefine the corporate reporting experience. Leveraging cutting-edge technologies, stakeholders can now engage with the report through WhatsApp based interactions, AI-powered video chat bot, AI-powered text chat bot, series of ten video-based report summaries and dynamic financial data visualisations. Together with interactive QR code access and intelligent information retrieval capabilities, these enhancements create a more inclusive, accessible, and engaging AI-powered reporting ecosystem, enabling stakeholders to access and interact with corporate information anytime, anywhere, and in their preferred format.

Demonstrating its commitment to inclusivity, the report is further enhanced with AI-powered video summaries in Sinhala, Tamil and English, sign-language enabled content for hearing-impaired stakeholders and a specially developed Braille Report designed to improve accessibility for visually impaired audiences. These initiatives reinforce the Company’s vision of ensuring that corporate information remains accessible, understandable and meaningful to all stakeholders.

The report also marks the Company’s transition to full compliance with the newly introduced SLFRS S1 and SLFRS S2 sustainability disclosure requirements, further strengthening the quality, transparency and credibility of its sustainability reporting framework.

Over the years, People’s Leasing has earned widespread recognition for its reporting excellence, receiving numerous local and international accolades, including prestigious awards from ARC International Awards, CA Sri Lanka and other renowned institutions. The publication of the 2025/26 Integrated Annual Report further reinforces the Company’s position as a benchmark setter in integrated reporting within Sri Lanka’s financial services sector.

The presentation ceremony was attended by senior representatives of People’s Bank and People’s Leasing, underscoring the strong partnership between the two institutions and their shared commitment to creating sustainable value for stakeholders and contributing to the economic development of Sri Lanka.

The Government will launch a nationwide campaign next month to encourage voluntary tax compliance and improve public attitudes towards taxation, as part of broader efforts to strengthen the country’s revenue system.

The campaign, titled ‘Tax Power 2026’ (Badu Shakthi 2026), will be launched in July under the Revenue Administration, Reform and Modernisation Unit of the Presidential Secretariat.

Presidential Secretariat Revenue Administration and Modernisation Unit Director Asitha Munasinghe said many Sri Lankans viewed taxes negatively and the campaign aimed to change that perception.

‘Sri Lankans are reluctant to pay taxes. They fear taxation and see it as a punishment. The main objective of this program is to transform that negative attitude into a positive one,’ he said.

He said the initiative sought to build a culture of voluntary tax compliance by helping the public understand how tax revenue is used to fund public services and national development.

Munasinghe also pointed out the importance of taxation in sustaining a resilient economy, noting that improved tax compliance had created the fiscal space that enabled the Government to respond to the impact of Cyclone Ditwah and the economic fallout from the Middle East conflict.

The campaign will bring together the Inland Revenue Department, Sri Lanka Customs and the Excise Department.

The main program will run from 6 to 10 July, beginning with an opening ceremony at the Presidential Secretariat under the patronage of the Speaker of Parliament.

During the week, Inland Revenue Department officials will conduct public awareness programs in selected towns where regional offices are located, while a central seminar on key tax reforms will be held for tax professionals, taxpayers and the public. Similar seminars are also scheduled in Anuradhapura, Galle and Matara.

A dedicated ‘Youth Day’ will focus on improving tax awareness among young people, while the final two days of the campaign will feature mass media and social media outreach.

Inland Revenue Department Commissioner and Media Spokesperson Nandana Kumara Athukorala said the campaign would educate taxpayers and the public on recent changes to the tax system through awareness programs conducted across selected cities.

Kumara said that since Tax Identification Numbers (TIN) became mandatory since 1 January 2024, the IRD has issued nearly 13 million TINs with personal income tax files increasing to over 1.2 million to-date. The TIN has been made mandatory when applying for a bank account, credit cards, driving licence, registering motor vehicles and land, applying for building plans and investing in listed shares.

Kumara also said that the Government’s decision not to reduce the VAT threshold to Rs. 36 million from Rs. 60 million will not impact IRD’s annual revenue collection target. ‘This is because we have already exceeded the six months target by about 59%, and we don’t expect the unchanged VAT threshold to have a significant impact on the annual target,’ Kumara said.

He said tax evasion continues to be significant issue, with over 40% of all taxable transactions in the country believed to be cash-based and untraceable. ‘We believe tax evasion is around 40%, it’s an estimate, but we do not have an estimated rupee value,’ Kumara told journalists.

Sri Lankan-born entrepreneur Denham Marlon Ferreira has been named a finalist in the highly prestigious 2026 Great British Entrepreneur Awards (Allica Bank) in the United Kingdom, earning a place in the competitive Global Entrepreneur of the Year category. Widely regarded as the ‘Grammys of Entrepreneurship,’ the Great British Entrepreneur Awards recognise outstanding business leaders who demonstrate innovation, resilience, leadership, and ambition while creating meaningful economic and social impact. This year, the awards attracted more than 5,000 applications from across the United Kingdom, with only an elite few businesses and entrepreneurs selected for the national shortlist. The finalists collectively represent £3.3 b in turnover and support more than 17,700 jobs.

Ferreira’s entrepreneurial journey spans more than three decades. He is the founder and Managing Director of Sentario UK Ltd. and Founder of Exterminators PLC, recognised as Asia’s first publicly listed specialist pest management company. Since venturing to the United Kingdom in 2023, he has focused on developing innovative solutions that combine artificial intelligence, environmental intelligence, predictive analytics, and sustainability. Among the innovations developed under his leadership are MACCP , an AI-powered Mosquito Intelligence Platform; PACCP , an AI-augmented Seven Force Model for preventive pest management; and AI Report Factory, an automated reporting and business intelligence platform. Commenting on the recognition, Ferreira said: ‘I am deeply honoured to be recognised as a finalist in the 2026 Great British Entrepreneur Awards. To be shortlisted alongside some of the UK’s most inspiring entrepreneurs is both humbling and motivating. This recognition reflects the hard work of our team, the trust of our customers, and the support of our partners.’

Ferreira recently completed the Artificial Intelligence Program at University of Oxford (Saïd) and has also undertaken executive education programs at University of Oxford, Harvard University, and National University of Singapore. Great British Entrepreneur Awards Founder Frankie James said, ‘When we launched the Great British Entrepreneur Awards in 2012, we set out to champion the businesses that get on and build. This year’s finalists represent not only significant economic contribution, but also extraordinary determination, resilience, and ambition.’ Allica Bank Chief Product and Strategy Officer Conrad Ford added: ‘What stands out this year is the optimism and ambition that continue to define the UK’s business community. Building a successful business requires resilience, creativity, and determination, qualities that are clearly reflected across this year’s finalists.’ Winners of the 2026 Allica Bank Great British Entrepreneur Awards will be announced at the national awards ceremony in London later this year.

The evening unfolded in a blaze of elegance and distinction as the foremost names in Sri Lanka’s automobile industry gathered for what has already come to be regarded as one of the most prestigious celebrations on the nation’s social calendar.

Distinguished guests arrived for a night honouring excellence, greeted by a sweeping red carpet. Ladies graced the occasion in glittering gowns and finely draped sarees, adding colour and sparkle to the foyer, while gentlemen cut striking figures in perfectly tailored tuxedos. As industry leaders, innovators, and pioneers gathered under one roof, the soft sounds of a live cello performance offered the ideal setting.

This year’s event marked a significant milestone for the awards program by introducing a fully digital ticketing and seating system for the first time. The platform, which was created especially to oversee each stage of the awards process-from applications and evaluations to guest management and final presentations-guaranteed a smooth and flawlessly coordinated experience all night long.

Chairman Eng. Ravith Silva gave a remarkable welcoming speech to kick off the formal proceedings. His words captured the importance of the occasion as well as the inspiring vision. He emphasised that the efforts of innumerable individuals and organisations that have shaped Sri Lanka’s automobile industry were not only acknowledged but also honoured on the grandest of stages, describing the evening as the culmination of their blood, sweat, and tears.

As he noted the awards’ significance, he pointed out that they are the first and only recognition program of their kind that embraces the entire automobile ecosystem. By doing this, they provide a platform that honours talent, innovation, craftsmanship, and commitment in all areas of the industry and set a new standard for excellence.

The evening’s Chief Guest, Minister Sunil Hadunhetti, followed with a keynote address delivered with remarkable conviction and sincerity, earning the admiration and attention of all present.

The awards trophy’s unveiling was one of the most moving moments of the evening. Guests were led on an emotional journey through the legacy of the Durr Brothers, whose work influenced the design and significance of the award, thanks to Danu Innasithamby’s captivating presentation. The audience found great resonance in the tribute, which served as a powerful reminder of the individuals whose vision shaped the industry.

A synchronised dance performance by a large troop of dancers added even more spectacle to the occasion, adding energy and vibrancy to the program while celebrating the spirit of innovation and progress that defines the automobile sector.

Fifty-eight awards were presented throughout the evening in a variety of categories, recognising exceptional achievement, leadership, and industry impact. Guests enjoyed a fine four-course dinner prepared to the finest standards, befitting an evening of such importance, while recipients took the stage to accept their honours.

Speaking about the awards’ wider significance, Chairman Silva stated that he believes the program will help in attracting a fresh generation of talent to the industry. Young people looking for opportunities, careers, and education would witness an industry that openly celebrates excellence in addition to rewarding it. He noted that future innovators, technicians, entrepreneurs, and leaders will be motivated to seek careers in the automobile sector by this spirit of recognition.

The awarding of the Lifetime Achievement Award, which is given to individuals whose dedication, integrity, and enduring contribution have left a lasting impression on the industry, marked the culmination of the ceremony. A moving duet performance of Simply the Best by two up-and-coming young vocalists marked the emotional end of the formal proceedings and paid a fitting tribute to the honourees of the evening.

After the presentation of the final awards, the celebrations continued with a lively after-party hosted by the well-known Flame Band, which gave guests a chance to celebrate and think back on the evening’s achievements.

Beyond the glitz and pageantry, the event had a significant impact on the industry’s future. In a surprise tribute, the Board of Directors recognised the Founder Chairman of the Council for his visionary leadership in establishing the awards program. Having voluntarily recused himself and his affiliated organisations from participation to preserve the integrity and impartiality of the process, his contribution was acknowledged with heartfelt appreciation from his peers.

Chairman Silva reflected on the principles that had shaped his own path during one of the most personal moments of his address. As he observed the winners and finalists gathered in the room, he said he saw his own father’s aspirations reflected in their eyes and in the trophies they proudly raised-an emotional tribute to the values of perseverance, dedication, and integrity that still define excellence in the automobile industry.

In closing, he congratulated the winners and finalists, calling them pioneers of a new era in the automobile industry. He said that today’s winners would inspire tomorrow’s challengers, and today’s finalists would surely return with a newfound resolve to secure their place among future honourees.

In keeping with its motto, ‘Honouring Legends, Inspiring Futures,’ the ceremony was both a celebration of achievement and a beacon for future generations. It demonstrated an industry where aspiration is encouraged, dedication is rewarded, and excellence is recognised.

The men and women of Sri Lanka’s automobile industry represented a level of sophistication usually found in fiction for one evening. However, this was not a cinematic script. They were the only ones in the spotlight because of their achievements, commitment, and ongoing legacy.

The legends were honoured. The brands were celebrated. Most importantly, the future was inspired.

In October 2023, the current Central Bank Governor, Dr. Nandalal Weerasinghe, signed a Monetary Policy Framework Agreement (MPFA) with the then Finance Minister, Ranil Wickremesinghe, binding the Monetary Authority to maintain quarterly headline inflation (based on the Colombo Consumer Price Index (CCPI)) at 5%. The MPFA is a formal, legally mandated pact between the Minister of Finance and the Central Bank of Sri Lanka (CBSL), and it is one of the defining features of the Central Bank of Sri Lanka Act No. 16 of 2023, which was passed by Parliament as part of the many economic reforms recommended by the IMF.

Under the new Central Bank Act, the MPFA is subject to review once every three years, and the present agreement reaches its statutory review point in October 2026. Leading up to the next review, many economists have argued that the prevailing 5% target is too high and should be reduced to as low as 2%. However, the CBSL Governor has disagreed with those advocating a lower inflation target, claiming that Sri Lanka would have to compromise growth if it opted for a target as low as 2%.

Last week, this column extensively assessed the Governor’s observations in the context of the experiences of other economies and mainstream economic thought, concluding that a developing economy like Sri Lanka requires sustainable, non-inflationary growth driven by productivity, real capital investment and global competitiveness, rather than maintaining artificially low interest rate regimes or providing periodic fiscal stimulus that generates only short-term economic growth.

Meanwhile, National List MP Ravi Karunanayake, in a letter, requested President Anura Dissanayake to reduce the CBSL’s inflation target to 2% during the upcoming October review. The former Finance Minister stated that preserving purchasing power and protecting the value of the Rupee should be regarded not merely as technical monetary objectives but as fundamental pillars of economic and social policy.

However, some of the contents of his correspondence contradict reality and conventional economic wisdom. The controversial politician expressed his disapproval of the Monetary Authority’s practice of raising interest rates to bring down inflation. He argued that excessive reliance on interest rate adjustments alone may not address the root causes of inflation. In practice, however, interest rate policy, a key monetary policy instrument, remains highly effective in curbing inflation, and monetary authorities worldwide raise interest rates to contain price pressures. Hence, a paradox emerges: while calling for a lower inflation target, the CIMA-qualified accountant appeared to oppose raising interest rates, the principal tool monetary authorities use to reduce inflation. The eminent economist Milton Friedman famously said, ‘Inflation is always and everywhere a monetary phenomenon.’

The former UNP stalwart has a documented history of criticising the Central Bank whenever it raised interest rates to control inflation. In 2018, he publicly criticised the then CBSL Governor over high interest rates while championing the concerns of the business community. Karunanayake has also been a vocal critic of granting the Central Bank autonomy and independence in conducting monetary policy, an arrangement widely regarded as essential for maintaining price stability. Two months ago, in an interview with a daily newspaper, the former UNP Colombo North Organiser revealed that he had once told former President Ranil Wickremesinghe that the Central Bank should not have been granted the level of independence it currently enjoys. Reflecting what critics describe as a weak understanding of monetary economics, Karunanayake added that the Central Bank should also focus on economic growth and employment generation.

The qualified management accountant should recognise that the fundamental responsibility of a monetary authority is to ensure price stability and financial system stability. Karunanayake’s views on interest rates and Central Bank independence undermine the very foundations on which Sri Lanka’s economic recovery has been built.

Sri Lanka’s national rugby sevens team will continue its preparations for a demanding international season when it competes in the prestigious LIT Super Sevens Series in London on 18 July.

Former Royal College and CH player Janidu Dilshan is expected to Captain the side in the absence of experienced campaigner Srinath Sooriyabandara, who is unavailable for selection.

Coached by Peter Woods, the Sri Lankan squad will use the event as vital preparation for the upcoming Asia Rugby Sevens Series, with legs scheduled in China and Sri Lanka later this year.

The overseas exposure is expected to enhance the team’s combinations, match fitness and overall performance as they build towards the 2026 Asian Games in Japan.

Sri Lanka squad

Akash Madushanka, Shaahid Zumri, Ramitha Himasha, Jayathu Rajarathna, Chathura Soysa, Dinal Ekanayake, Koojana Kulatunge, Diluksha Dange, Gayan Perera, Janidu Dilshan, Pasindu Bandara and Denuwan Wickramarachchi. Standby: Isuru Kongahawatte, Aaron Corera and Ravindu Anjula.

SLT-Mobitel has forged a landmark partnership with Versa, the global leader in unified security and networking, becoming Sri Lanka’s first Managed Service Provider (MSP) for industry-leading Secure Access Service Edge (SASE) solutions. Signed recently, the partnership marks a new chapter in enterprise connectivity and security for Sri Lanka.

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