Category: Daily Financial Times

Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa yesterday said the Government will continue its QR-based fuel distribution system as uncertainty surrounding conflicts in the Middle East continues to affect global oil markets,

He said the QR mechanism remains necessary to manage the country’s fuel supplies and ensure that available stocks are distributed without major disruption.

‘The continuation of the system is aimed at ensuring an orderly distribution of fuel, while we monitor developments in the global oil market and the ongoing instability in the Middle East,’ he added.

He said fuel consumption has declined since the QR system was introduced, although the reduction has been relatively limited.

According to the Cabinet Spokesman, diesel usage has fallen by 10%, while petrol consumption has declined by 9%.

Dr. Jayatissa opined that continued instability around the Strait of Hormuz is contributing to fluctuations in global crude oil prices and that the international oil crisis has not yet been resolved.

‘The oil crisis has not yet been resolved. As a country, we are using this system to maintain daily life as much as possible without disruption,’ he added.

He also said that fuel supplies are currently being prioritised for essential sectors, as the Government seeks to manage available stocks amid uncertainty in international energy markets.

Sri Lanka set a 5% inflation target in October 2023 under the flexible inflation-targeting framework legally supported by the Central Bank of Sri Lanka Act of 2023. The Act provides for the target to be reviewed every three years, and the first review is expected in late 2026. The review comes at an important moment, as Sri Lanka’s recent inflation outturn, generally speaking, has been well below the target, prompting debate over whether the 5% target should be retained or reduced substantially. This article contributes to that debate by assessing the issue through technical evidence, international experience, inflation-targeting practices, and relevant global best practices.

What should guide the inflation target review?

An inflation target review should be a diagnostic exercise, not a mechanical decision to change the target. It should be based on technical analysis, a cost-benefit assessment of any revision, and clear public communication. The review allows the central bank and Government to assess whether the existing target remains appropriate, whether any parameters need fine-tuning, and how best to explain the target and policy responses to the public. It also provides an opportunity to strengthen transparency, accountability, and public understanding of the inflation-targeting framework. It is also important to remember that reviewing the inflation target does not necessarily mean changing it.

International experience shows that changes to inflation targets are infrequent and, when needed, are usually gradual. Countries that adopted inflation targeting during periods of high inflation, such as Brazil, the Czech Republic, Poland, Indonesia and Georgia, generally used multi-year disinflation paths to bring inflation and expectations down sustainably. These adjustments were transparent, gradual, and supported by credibility gains, rather than abrupt changes in response to short-term inflation outturn. Many mature inflation-targeting economies, including India, Philippines, Thailand, and Mexico, have either maintained their targets or converged gradually to a medium-term target and kept it unchanged.

Furthermore, only a few countries have included stakeholders or public engagement in the inflation target review process, and this was typically introduced only at a mature stage of IT. By contrast, CBSL has begun public engagement during its first review, within three years of introducing the first statutory target. This reflects the high level of transparency CBSL has brought to the review process.

What is the global experience with inflation targets?

Countries adopt different inflation targets tailored to their economic conditions (Table 1). These targets can take various forms, such as a point target (2%), a point target with a band (2%, ±1 %), or a band target (1-3%). The width of the band also varies depending on country characteristics. A common observation is that advanced economies, which generally have lower trend inflation and lower inflation volatility, tend to set lower inflation targets than other countries. Most Emerging Market and Developing Economies (EMDEs) and early adopters of IT frameworks set relatively higher targets, usually with a band, to accommodate supply-side volatility. Meanwhile, some mature EMDEs, with a proven track record of inflation control, better-anchored inflation expectations, and strong credibility in their IT frameworks, have gradually lowered their targets over time.

Why is recent inflation a poor guide to set future target?

Inflation followed an unusual pattern worldwide in the post-pandemic period. From 2021 to early 2022, inflation accelerated because of both demand and supply pressures. As economies reopened, demand for goods and services strengthened, supported by fiscal stimulus and loose monetary policy in many economies. At the same time, supply bottlenecks persisted, commodity prices surged, and second-round effects from global price shocks added further pressure. Sri Lanka’s inflation episode was more complex. In addition to global drivers, domestic factors, including sharp currency depreciation, food price increases following supply shocks, and large one-time energy price adjustments and spillovers, pushed inflation to historically unprecedented levels. Subsequent monetary policy responses and the gradual normalisation of global commodity prices supported disinflation from 2023. Sri Lanka’s disinflation was steeper than in many countries and was followed by temporary deflation from late 2024 to mid-2025. However, a reversal of the disinflationary trend has begun to emerge worldwide, following the energy price shock and supply disruptions triggered by the Middle East conflict in early 2026. In Sri Lanka, too, inflation surged from 2.2% in February to 7.3% in July 2026, with inflation likely to remain elevated in the near term.

Chart 1 offers several important insights. First, inflation dynamics worldwide and in Sri Lanka have been abnormal since 2021. Second, average inflation in advanced economies is generally lower than in EMDEs. In the absence of major global shocks, inflation in advanced economies has typically hovered around 2%, while inflation in EMDEs has been around 5%-6%. Third, Sri Lanka’s inflation dynamics, shown on the right axis, were broadly comparable to those of EMDEs. Fourth, many countries likely missed their inflation targets in the post-pandemic period as inflation deviated sharply from historical trends. This shows that inflation trends since 2021 have been atypical and should not be used to infer an appropriate inflation target for the future.

Higher inflation targets and wider tolerance bands in EMDEs, compared with advanced economies, are empirically justified. EMDEs are more exposed to food and energy price volatility, and these items account for a larger share of their consumption baskets. This makes inflation higher and more volatile. EMDEs are also more exposed to global shocks through exchange rate depreciation and stronger pass-through to inflation. Cross-country studies also point to weaker fiscal and monetary policy institutions, less-anchored expectations, and communication gaps as factors shaping inflation dynamics in EMDEs. These factors remain important when setting inflation targets.

The Balassa-Samuelson effect also helps explain the persistent positive inflation gap between EMDEs and advanced economies. In fast-growing EMDEs, productivity gains in the tradable sector, especially exports, allow firms to pay higher wages. These wage increases can spread to the non-tradable sector, where productivity growth is usually lower, pushing up costs and prices. A somewhat higher inflation target may therefore be justified in fast-growing, open EMDEs if this effect is persistent. Empirical evidence supports the effect, although estimates vary across countries. Recent estimates for India, for example, place it at about 1.7%-2.2%.

Would a sizeable reduction in Sri Lanka’s inflation target be prudent at this stage?

The long-term socioeconomic benefits of low inflation are well documented. However, reducing inflation to a low and less volatile level in EMDEs is not straightforward. A structural reduction in inflation takes time and requires several supporting conditions and policies. Mechanically lowering the inflation target as a shortcut to low inflation could have unintended consequences. The key arguments against notably lowering inflation target in this review are summarised below.

High transition cost of reducing the target: If the inflation target is reduced notably for the forthcoming period, current inflation needs to be brought down more quickly. This would require aggressive monetary policy tightening and higher interest rates. Lower inflation combined with high nominal interest rates would raise real interest rates and discourage investment. This would affect credit growth, consumption, investment, and ultimately economic growth. Higher interest rates would also increase the Government’s borrowing costs, public debt and weaken fiscal performance. A sharp rise in interest rates over a brief period could weaken financial institutions’ balance sheets, with adverse implications for financial system stability. A sudden and short-term disinflation process would therefore involve a high sacrifice ratio, output loss for inflation reduction.

Unfavourable global environment: Heightened geopolitical uncertainty, trade fragmentation, and related supply-side shocks and spillovers leave little room for drastic domestic policy changes.

Current macroeconomic conditions are not conducive for a target reduction: Sri Lanka is still recovering from the consequences of the recent economic crisis. The country remains exposed to external shocks, exchange rate volatility, and exchange rate pass-through to inflation. At this stage, the economy needs stable macroeconomic conditions, stronger growth, lower debt vulnerabilities, continued fiscal consolidation, and a resilient financial sector.

No evidence of a permanent shift to lower inflation: Although Sri Lanka experienced low inflation and even deflation in the recent past, this does not show that the economy has undergone a structural shift toward permanently lower inflation. Sharp surge in inflation following the global energy shock in early 2026 is a clear reminder that global supply shocks can cause large volatility in inflation within a brief period.

Inflation expectations have not shifted to a lower level: CBSL’s inflation expectations survey suggests that expectations are broadly anchored around the current target. Any significant reduction in the target would need to be supported by strong efforts to guide expectations toward the new target. International experience suggests that this process should precede, not follow, a target reduction.

Should the target shift from headline inflation to core inflation?

The debate in Sri Lanka has also raised the question of whether the target should shift from headline inflation to core inflation. Core inflation remains useful as it captures underlying inflation trends and helps guide monetary policy decisions. However, using core inflation as the formal target has important drawbacks for credibility and transparency. The public experiences inflation mainly through the prices of frequently purchased goods and services, especially food and energy. Their inflation expectations are also shaped by these prices. If the central bank targets an inflation measure that excludes such items, the public may find the target less credible, and expectations could diverge from it. Core inflation targeting can also make monetary policy communication more difficult. Since credibility and well-anchored expectations are central to successful inflation targeting, most countries use headline inflation as the formal target. Thailand, Korea, and the Czech Republic used core inflation targets at initial stages but later moved to headline inflation. Today, headline inflation is the formal target in majority of IT countries, with Uganda being a notable outlier.

In practice, core and headline inflation tend to converge over time, although the speed of convergence differs across countries. Headline inflation may rise temporarily because of supply-side shocks, such as increases in food or energy prices. If these shocks are temporary, the gap between headline and core inflation should close over time, provided there are no significant second-round effects or changes in inflation expectations. In general, headline inflation tends to return to core inflation after a temporary supply shock. However, if the shock is large and persistent, headline inflation can remain above core inflation for longer. Over time, higher food or energy prices may affect other goods and services, raise inflation expectations, and create wage pressures. These effects can eventually push core inflation higher as well. For this reason, central banks closely monitor both headline and core inflation, paying attention to supply-side shocks in addition to demand pressures that are directly relevant for monetary policy. Yet, headline inflation is used to set public inflation targets.

Should the inflation target move from the Colombo Consumer Price Index (CCPI) to the National Consumer Price Index (NCPI)?

The national measure of inflation has several merits, as it provides wider coverage of both geographic regions and the consumption basket. However, at this stage, it also has some weaknesses as a formal inflation target. First, food has a much larger weight in the NCPI than in the CCPI (39% compared with 26%). As a result, NCPI inflation is more vulnerable to volatility from supply-side disruptions and is less responsive to monetary policy. Second, the data release lag is long, with NCPI published after 21 days, compared with the immediate release of the CCPI. This limits its usefulness for timely policy decisions. Third, the NCPI has a much shorter data series, starting only in 2014, compared with the CCPI, which dates back to 1953. This makes the NCPI less suitable for macroeconomic modelling and inflation forecasting, both are important for monetary policy formulation.

Reliable inflation forecasting based on high-frequency data and indicators is central to an IT framework. Therefore, adopting an NCPI-based inflation target at this initial stage could raise credibility concerns. Over time, as Sri Lanka’s statistical system matures, data become timelier, and the NCPI series becomes sufficiently long, Sri Lanka could revisit the case for moving toward a nationally representative inflation measure as the formal target.

Conclusion

There is no compelling reason to make a notable reduction in Sri Lanka’s inflation target at this stage. Although inflation outturn in 2024/25, following the historic inflation peak, has been well below the current target, this alone does not justify changing the target for the next three years. This conclusion is especially relevant given the uncertain global geoeconomic environment and Sri Lanka’s ongoing domestic macroeconomic recovery. Moreover, an abrupt reduction of more than half of the original target at an early stage of inflation-targeting adoption, as some have proposed for Sri Lanka, would be globally unprecedented and impractical. It is therefore premature to make any sizeable change to the inflation target. An overly ambitious short-term disinflation path, supported by a lower target at this review, could weaken the credibility of the flexible inflation targeting framework at an early stage before its benefits are fully realised. Sri Lanka could consider lowering the target gradually in the future, once credibility is stronger, inflation volatility has declined, and the economy has structurally shifted toward a lower-inflation environment.

(The author currently serves as the Alternate Executive Director at the Executive Board of the International Monetary Fund (IMF) and is a former Director of the Economic Research Department of the Central Bank of Sri Lanka (CBSL). The views expressed in this article are her own and do not necessarily reflect those of the IMF or the CBSL)

Pasindu Sooriyabandara who made his mark in Test cricket with a solid knock of 80 on the second day of the second Test against India at the SSC grounds yesterday said that playing first-class cricket and, for the Sri Lanka ‘A’ team helped him get into the national side.

Sooriyabandara who has been playing first-class cricket since 2018 and has scored 14 centuries, four of which he has converted to double hundreds said: ‘Playing first-class cricket is a good experience for any player. Coupled with playing in the ‘A’ team is very helpful. It is certainly important for any player to reach international level. The more you play, the more the player will mature.’

Sooriyabandara got the opportunity to break into the Test scene when Dinesh Chandimal was concussed and was ruled out of the first Test at Galle which resulted in him playing as a concussion sub. He was asked to bat at number three in Chandimal’s position and was dismissed for a golden duck in his very first Test innings.

‘I couldn’t make use of the first opportunity I got in Test cricket to score some runs for the team at Galle. I thought from the second opportunity I got, that I must contribute something to the team,’ said Sooriyabandara at the end of the day. ‘I think the 80 I scored today I could have gone and made a big score. Although I am happy with my innings I could have gone and played a bigger knock.’

‘After I was out for a duck in my first Test innings I got the backing of the coaches and the players and from my parents, friends and supporters. That backing is important for any player and I am thankful to them. It’s a big privilege to get the opportunity to play in the national team. Once you get there, it’s your maturity that matters. You have to do your basics right at whatever level you play.’

Sooriyabandara said that Sri Lanka’s challenge tomorrow was to get the 39 runs to avoid the follow-on.

‘More than the pacers, the wicket helped the spinners. We have to adapt to it on how to score runs in such conditions. As a batsman what we could not achieve in the first innings we will try to do in the second.’ (ST)

Frontier Energy Network will take Sri Lanka’s newly launched oil and gas licensing round to the international upstream market through a targeted campaign aimed at connecting the country with global operators and investors capable of evaluating and investing in the four offshore blocks on offer.

UK-based Frontier Energy Network Founder and CEO Gayle Meikle, speaking virtually yesterday at the launch of the ‘Sri Lanka Licensing Round 2026’, said the company, through its global upstream investment-promotion platform PetroInvest, would work alongside the Petroleum Development Authority of Sri Lanka (PDASL) to market the opportunity internationally.

‘Firstly, a sincere congratulations to the Government of Sri Lanka, the Ministry of Energy and the Petroleum Development Authority of Sri Lanka on the launch of the Sri Lanka Licensing Round 2026. It is a privilege for Frontier, through our PetroInvest service, to be working alongside the team and to have the responsibility of taking this opportunity to the international market,’ Meikle said.

Frontier has been appointed as the specialist international marketing and promotion partner for the licensing round, under which Sri Lanka is offering four offshore exploration blocks covering nearly 34,000 sq. km in the Mannar Basin.

Meikle said launching a licensing round was only the first step, with its success dependent on how effectively the opportunity was presented to potential international investors.

‘Launching a licensing round is an important moment for the country and taking that opportunity successfully to the international market is a crucial part. It requires clear positioning, specialist industry marketing and, most importantly, reaching companies and decision-makers capable of evaluating and investing in those opportunities,’ she said.

‘Frontier is the specialist international marketing and promotion partner supporting the Sri Lanka Licensing Round through our PetroInvest service. We are working alongside the Petroleum Development Authority of Sri Lanka to take the licensing round to the international upstream market.’

The upstream petroleum industry covers the exploration and production end of the oil and gas business, including the search for resources, drilling and eventual extraction.

Meikle said Frontier’s mandate was not limited to general promotion, but involved identifying and engaging companies and individuals with the technical expertise and capital to consider Sri Lanka’s offshore acreage.

‘Our role is to position the opportunity, communicate it effectively and connect Sri Lanka with Frontier’s international network of operators, investors, technical experts and senior industry decision-makers worldwide,’ she said.

A key part of the campaign is a dedicated digital hub developed for the Sri Lanka Licensing Round 2026, intended to provide potential bidders with a single point of access to information on the acreage and bidding process.

‘The website provides a single international destination for companies interested in understanding, evaluating and participating in the bid round,’ Meikle said.

She said the opportunity section introduces the licensing round and provides an overview of Sri Lanka’s offshore petroleum prospects and the acreage being offered, while a separate team section introduces the PDASL officials responsible for delivering the bid round.

Maps available through the platform allow potential investors to examine the acreage and locations of the four blocks.

‘Ultimately, creating the digital platform is only part of the job. Our role is to take the Sri Lanka opportunity out to the international market. Frontier is supporting an integrated campaign combining international communications, specialist marketing, direct investor engagement and promotion through our global upstream network,’ she said.

The international campaign will begin with investor engagement in London at the World Energies Summit on 29 and 30 September.

‘This includes international investor engagement in London at the World Energies Summit on the 29th and 30th of September, putting Sri Lanka in front of senior upstream leaders from across the global upstream sector,’ Meikle said.

A dedicated virtual investor briefing will follow on 21 October, giving prospective investors direct access to Sri Lankan officials and an opportunity to examine the licensing round in greater detail.

‘On the 21st of October, a dedicated virtual investor briefing will give interested companies the opportunity to hear directly from Sri Lanka, understand the licensing round in greater detail and engage with the team,’ she said.

The campaign will then move to Asia, with Sri Lanka’s exploration acreage to be promoted to investors at the Asia Petroleum Geoscience Conference and Exhibition in Kuala Lumpur on 16 and 17 November.

‘And lastly, in November, the campaign moves into Asia with investor engagement in Kuala Lumpur at the Asia Petroleum Geoscience Conference and Exhibition on the 16th and 17th of November,’ Meikle said.

The international campaign will run alongside the formal bidding process for the four Mannar Basin blocks. Prospective companies will be able to access technical information to assess the geological potential of the acreage before deciding whether to bid.

Meikle said Frontier’s role was ultimately to connect Sri Lanka’s upstream petroleum potential with companies able to assess and invest in it.

‘Ultimately, our role is about creating the bridge between the country’s upstream opportunity and the international market. For Sri Lanka, that means building international awareness, making the opportunity easy to understand and access, targeting the right companies and creating opportunities for meaningful investor engagement,’ she said.

‘This is what Frontier brings to the Sri Lanka Licensing Round 2026: specialist upstream marketing, international reach and a coordinated campaign to take Sri Lanka’s opportunity to the world.’

Meikle invited prospective investors to examine the licensing opportunity and formally register their interest as the international campaign gets underway.

‘If you are interested in the Sri Lanka Licensing Round, please visit the website, explore the opportunity and register your interest. We look forward to welcoming you and engaging with you soon,’ she said.

Sri Lanka has resumed international licensing for offshore oil and gas exploration after more than a decade, offering four Mannar Basin blocks covering 33,964 square kilometres in a fresh attempt to attract global energy companies to develop the country’s hydrocarbon resources.

The move comes more than a decade after Cairn India exited Sri Lanka following an exploration campaign that discovered natural gas and condensate but did not progress to commercial production.

Petroleum Development Authority of Sri Lanka (PDASL) Director General Dr. Neil De Silva said bids under the Sri Lanka Licensing Round 2026 (SL2026-01) were expected to close in early 2027, followed by evaluation and the award of blocks through Petroleum Resources Agreements. Seismic surveys and drilling would follow, with commercial production targeted by 2032 if commercially viable resources are established.

Sri Lanka already has two gas discoveries in the Mannar Basin, Dorado and Barracuda, both made in 2011. Dr. De Silva said Dorado has an estimated P50 resource of 314 billion cubic feet (bcf) of gas and Barracuda 525 bcf, giving a combined estimate of 839 bcf. P50 is the most-likely estimate, representing a 50% probability that the actual resource will equal or exceed that volume.

‘Barracuda is very interesting because the upside potential of the Barracuda discovery is at least four times that,’ Dr. De Silva said.

He said the discoveries represented only part of the Mannar Basin’s potential, with substantial areas yet to be explored.

Cairn drilled four wells in the Mannar Basin between 2011 and 2013. However, the deepwater location, high development costs and lack of supporting infrastructure made commercial development difficult at the time.

Dr. De Silva said conditions had changed considerably since Cairn’s exit, with technological advances making deepwater exploration and extraction more feasible and more companies entering the sector. While the cost of deploying a deepwater drilling rig remained broadly comparable to a decade ago, technology had improved the economics of exploration, with Chinese companies and technology also becoming more prominent globally.

The 2032 production target remains dependent on seismic studies and drilling establishing commercially recoverable resources. Companies awarded blocks will have to undertake seismic surveys and exploration and appraisal drilling before commercial development can proceed.

Sri Lanka is seeking to position Colombo as a preferred cruise tourism hub in the Indian Ocean, with the Government and private sector exploring ways to attract more international cruise liners and extend passenger stays to generate wider economic benefits.

Ocean Cruise Global Accounts Director Thushaan Kunabalasingam, who works closely with leading global cruise operators, said the current environment was conducive to new investment and greater collaboration between the Government and private sector.

‘Sri Lanka has the potential to be a key hotspot for cruise tourism in the Indian Ocean. With proper coordination between ports, travel agencies and hotels, Colombo can emerge as a preferred destination,’ Kunabalasingam told the Daily FT.

During his recent visit to Sri Lanka, Kunabalasingam held discussions with Government Ministers and senior officials on developing the cruise tourism industry and attracting more international cruise calls.

His discussions with the Sri Lanka Ports Authority (SLPA) focused on the potential to accommodate larger vessels carrying 5,000-7,000 passengers. He said major cruise operators, including those frequently calling at Indian ports, currently bypass Colombo despite Sri Lanka’s strategic location in the Indian Ocean.

Kunabalasingam is also facilitating links between Cinnamon Hotels Group and international cruise lines to develop an integrated tourism offering aimed at high-spending cruise passengers.

He met Foreign Minister Vijitha Herath together with representatives of the German Industry and Commerce Agency (AHK) Sri Lanka and Livecookintable/MEC2 GmbH to discuss opportunities to develop Sri Lanka as a leading cruise tourism destination.

A key focus of the discussions was strengthening cooperation between public authorities and the private sector to increase the number of cruise ships calling at Sri Lankan ports, while developing strategies to extend the stays of passengers who currently make relatively short visits.

Kunabalasingam said longer stays would spread the economic benefits of cruise tourism beyond ports and hotels to transport operators, tour guides, travel agencies, local businesses and communities.

The initiative also seeks to bring together hotels, travel agencies and other tourism stakeholders to create packages encouraging cruise passengers to leave their ships, explore Sri Lanka and spend more time in the country.

‘The aim is to keep the people here, not just make a stop and go,’ Kunabalasingam said.

He said Sri Lanka could also seek to capture cruise traffic currently heading to destinations such as the Maldives.

‘When cruises are going to Maldives, why not Sri Lanka?’ he said, pointing to the country’s proximity and existing tourism infrastructure.

Kunabalasingam said discussions with the Government and port authorities had created a positive environment for moving the initiative forward, while international cruise industry networks could be leveraged to promote Sri Lanka among global operators.

The Government has also highlighted tourism as an area offering significant investment opportunities and reaffirmed its commitment to developing cruise tourism as a key driver of the sector.

Kunabalasingam said the focus should ultimately be on creating a coordinated ecosystem in which cruise operators, ports, hotels, travel agencies and local businesses all benefit from increased cruise activity.

‘Everyone is going to benefit if we really push each other,’ he said.

Carnage has officially partnered with Sri Lanka Rugby (SLR) as the Official Clothing Partner of the National Rugby Team, marking a significant new collaboration between a leading local brand and the country’s premier rugby outfit.

The partnership brings together two entities that share a strong belief in discipline, commitment, teamwork and continuous improvement. Carnage will provide official clothing for the national rugby team, further strengthening its growing presence in Sri Lankan sport.

Carnage Founder Joel Tillekeratne said the partnership reflects the brand’s belief that progress comes through dedication, hard work and striving to be better every day. He added that rugby embodies commitment, resilience and the ability to perform as a team, making the collaboration particularly meaningful for Carnage.

‘Carnage has always been driven by the belief that progress comes from showing up, putting in the work and being 1% better every day,’ Tillekeratne said. ‘Rugby embodies that mindset. It demands commitment, resilience and the ability to perform as a team. Having Carnage stand behind our national rugby team is something I’m particularly proud of, and we’re looking forward to being part of their journey.’

The partnership also builds on Carnage’s wider commitment to developing sporting talent. Through the Carnage Athletes Foundation, the brand supports athletes with ambitions of reaching the international stage. Carnage has also recently been named the Official Activewear Partner of the National Olympic Committee of Sri Lanka.

Sri Lanka Rugby President Pavithra Fernando welcomed the partnership, noting that Carnage understands the discipline and determination required to represent the country at the highest level.

‘Representing Sri Lanka demands a level of commitment that extends well beyond the field,’ Fernando said. ‘Carnage understands the discipline and determination required to perform at this level, making them a strong partner for our national team. We look forward to working together and equipping our players as they continue to represent Sri Lanka with pride.’ (SJ)

Chandana Guniyangoda assumed duties as the new Chairman of People’s Bank yesterday at a ceremony held at the bank’s head office. The occasion was attended by the former Chairman Prof. Narada Fernando, Board members, General Manager/CEO and members of the bank’s corporate management.

The bank said Guniyangoda’s appointment marks a significant milestone in Sri Lanka’s State-owned banking sector. He becomes the first Chairman of a state-owned licensed commercial bank to be appointed as an Independent Non-Executive Director under the strengthened governance framework introduced following Sri Lanka’s IMF-supported reform program.

The framework, developed through reforms undertaken in consultation with the IMF and World Bank and reinforced by the Central Bank of Sri Lanka’s Banking Act Directions No. 05 of 2024 on Corporate Governance for Licensed Banks, introduced more rigorous criteria for determining Director independence and strengthened the role of independent oversight at Board level.

This milestone therefore represents an important step in strengthening public confidence in the governance of People’s Bank and in ensuring that the bank continues to be managed in the best interests of its customers, stakeholders and the country.

A distinguished finance professional with over 28 years of experience, including 19 years in commercial banking, Guniyangoda brings extensive expertise in finance, strategic planning, business transformation, process re-engineering, cost optimisation, human resource management, asset and liability management, risk management and regulatory reporting.

Guniyangoda is a Fellow of both the Institute of Chartered Accountants of Sri Lanka (FCA) and the Institute of Certified Management Accountants of Sri Lanka (FCMA). His academic qualifications include a Master of Business Administration in Banking and Finance (MBA) from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura; a Master of Arts in Financial Economics (MAFE) from the University of Colombo; and a B.Sc. in Business Administration (Special) from the University of Sri Jayewardenepura. He also holds an Advanced Certificate in Banking and Finance (ACBF) from the Institute of Bankers and IFS, London.

Throughout his career, Guniyangoda has held a range of senior strategic and managerial positions across the banking and corporate sectors. His professional experience includes serving as Assistant Vice President – Finance, Strategic Planning and Business Support at NDB Bank PLC and as Director of Development Holdings Ltd., a joint venture between NDB Bank and the Export Development Board.

Prior to this, he served at Sampath Bank PLC as an ALCO Officer and Senior Executive – Finance and Planning. He commenced his professional career as a Trainee Graduate at Aitken Spence PLC. More recently, he provided specialist expertise in finance and administration in the restructuring of institutional frameworks within the agriculture and plantation sectors under the Agriculture Modernisation Project of the World Bank and the Ministry of Agriculture.

In addition to his extensive corporate and banking experience, Guniyangoda currently serves as Independent Chairman of People’s Insurance PLC, Group Chief Financial Officer of MG Group of Companies, a Board Member of New Vithanakande Tea Factory Ltd., and Non-Executive Chairman of CCPI Management Holdings Ltd. He is also an Honorary Member of the Board of Management of the CA Sri Lanka SAB Campus.

With his extensive experience in banking, finance, corporate governance and strategic management, Guniyangoda assumes the Chairmanship of People’s Bank with a wealth of knowledge and expertise, further strengthening the Bank’s leadership as it continues to support Sri Lanka’s economic development and serve millions of customers across the country.

Dialog Axiata PLC announced its partnership with Cool Planet, enabling customers to make secure LankaQR payments using Dialog Pay across its network of over 14 outlets. The partnership introduces a more rewarding digital payment experience at one of Sri Lanka’s leading fashion and lifestyle retailers, giving customers complimentary Dialog data on eligible LankaQR transactions.

Customers can now use Dialog Pay to purchase a wide range of fashion apparel, footwear, accessories, beauty products, toys, homeware, gifts and lifestyle essentials across Cool Planet stores. The partnership provides customers with a secure and convenient way to pay while making family shopping even more rewarding.

Cool Planet Marketing Manager Aqaam Wahabdeen said: ‘Cool Planet has always been about making fashion and lifestyle shopping effortless, rewarding and accessible for families across Sri Lanka. Everything we do is built around our customers from the ranges we curate in our stores to the experience we create every time they visit us. Offering Dialog Pay is a natural extension of that promise: it gives our shoppers one more secure and convenient way to pay, with the added benefit of complimentary data on eligible LankaQR transactions. We’re proud that a brand our customers already trust for choice and value can now reward them even more, every time they shop with us.’

Dialog Pay, available through the Dialog Pay App and the MyDialog App, brings together connectivity, digital payments and financial services within a single ecosystem, supporting Dialog’s vision of making digital payments simpler, more accessible and more rewarding for every Sri Lankan. Customers can conveniently activate Dialog Pay using their eZ Cash account or by linking their preferred bank account, enabling them to make secure LankaQR payments, transfer funds, access their digital wallet, open savings accounts and fixed deposits, and apply for loans powered by Dialog Finance. Accepted across more than 100,000 retail outlets nationwide, Dialog Pay rewards eligible QR payments with complimentary Dialog data, encouraging greater everyday adoption while supporting Sri Lanka’s continued transition towards a more digitally connected and cash-light economy.

World Rankings Competition status places Colombo Marathon on the World Athletics Global Calendar, marking a significant milestone for Sri Lankan athletics as preparations advance

Organised by the Ministry of Youth Affairs and Sports, the Colombo Marathon 2026 has achieved a significant milestone for Sri Lankan athletics, with its application validated by World Athletics and the competition registered for publication on the World Athletics Global Calendar as a World Rankings Competition.

The Colombo Marathon 2026 will take place on 13 September 2026 at Baladaksha Mawatha, with the race starting at 6.00 a.m. More than 4,000 local and international participants are expected to take part across four categories: the Full Marathon (42 km), Half Marathon (21 km), 10 km Road Race and 5 km Fun Run.

The recognition gives the marathon international competitive status, with performances from the event eligible to contribute towards the official World Athletics World Rankings, subject to the applicable requirements. For Sri Lankan athletes, it creates an opportunity to compete in a globally recognised ranking competition on home ground, while giving international athletes another recognised race on the global calendar.

The development comes as preparations gather pace, with technical planning now focused on ensuring that the race delivers the standards expected of a World Rankings Competition. A key area of preparation is the technical management and measurement of the course. International technical expertise is being brought together with Sri Lankan officials as the organisers work towards ensuring that the course and race arrangements meet the requirements associated with the event’s World Athletics status.

More than 100 qualified officials from Sri Lanka Athletics will support the conduct of the race, with preparations also involving the Department of Sports Development, Sri Lanka Athletics and the Institute of Sports Medicine. The technical work covers course measurement, technical officiating, athlete safety, medical preparedness and race-day operations, ensuring that the standard of its on-the-ground delivery matches the international recognition secured by the event.

‘Being recognised as a World Rankings Competition and included on the World Athletics Global Calendar is a significant milestone for Sri Lankan athletics. It allows our athletes to compete on home ground at a globally recognised event, while placing Colombo firmly on the international road-running map,’ said Youth Affairs and Sports Minister Sunil Gamage,

The recognition also strengthens the Colombo Marathon’s potential to attract international participation and support Colombo’s wider ambitions as a destination for sports tourism, while allowing Sri Lankan athletes to compete within a globally recognised competitive environment without travelling overseas.

As the countdown continues, the focus now is on translating the recognition achieved through the World Athletics Global Calendar into a technically sound and professionally delivered race, with Colombo preparing to welcome athletes from Sri Lanka and overseas.

Colombo Marathon 2026 is organised by the Ministry of Youth Affairs and Sports together with the National Olympic Committee of Sri Lanka. The event is presented by Union Assurance, powered by Elephant House, supported by Nations Trust Bank and City of Dreams Sri Lanka, with Rupavahini as the Official Media Partner, DC Group as the Creative Partner, Nestomalt as the Energised Partner and IPG Group as the Sports Innovation Partner.

Sri Lanka’s tea exports fell sharply in the first seven months of 2026, with Middle East shipping disruptions compounding weaker shipments to several key markets and contributing to a $ 67 million decline in export earnings.

Tea exports during January-July dropped 4.9% to 143.51 million kg, from 150.85 million kilograms (Mn/Kg) in the corresponding period last year, according to data from Forbes and Walker Research and Customs figures analysed by Siyaka Research.

The contraction accelerated in July, when exports fell to 20.41 Mn/Kg, down 3.63 Mn/Kg, or about 15%, from 24.04 Mn/Kg a year earlier.

They attributed the renewed pressure in July partly to continued disruptions to shipping routes in the Middle East, which affected export flows and market access.

The decline in volumes has been accompanied by weaker dollar realisations. Tea export earnings for the first seven months were approximately $ 817 million, compared with $ 884 million a year earlier.

The average FOB value declined to $ 5.70 per kg from $ 5.86, despite a substantial increase in the rupee-denominated FOB value.

The average FOB value in July rose to Rs. 1,921.95 per kg, up Rs. 155.44 from Rs. 1,766.51 a year earlier. However, the stronger rupee-denominated price was not sufficient to offset the decline in export volumes and the lower dollar realisation.

For the January-July period, the average FOB value increased by Rs.77.65 to Rs.1,826.16 per kg from Rs. 1,748.51. In dollar terms, however, it declined by $ 0.16 per kg to $ 5.70.

The divergence highlights the pressure on Sri Lanka’s tea export sector: higher local-currency prices are masking a deterioration in the underlying dollar value of shipments, which remains the more relevant measure for export earnings and foreign-exchange generation.

The impact has been particularly pronounced across several Middle Eastern and adjacent markets.

Exports to Libya fell by around 58% to 5.4 Mn/Kg from 13 million kg, while shipments to the United Arab Emirates declined by a similar magnitude to 4.4 Mn/Kg from 10.6 million kg, according to Siyaka.

Saudi Arabia proved more resilient, with imports broadly stable at around 4.8 Mn/Kg compared with 4.7 Mn/Kg previously. Syria also recorded a modest increase, with imports rising to 4.7 Mn/Kg from 4.5 Mn/Kg.

Beyond the region, exports to Chile declined by approximately 24% to 4.9 Mn/Kg, while China recorded an 8% decline to 5.5 Mn/Kg.

The market performance nevertheless contained some bright spots. Trkiye emerged as the largest individual importer of Ceylon Tea during the January-July period, with imports reaching 24.76 Mn/Kg, up 138% from 10.40 Mn/Kg a year earlier.

Iraq, however, saw imports fall 36% to 14.42 Mn/Kg, while Russia recorded a 2.6% increase to 13.35 Mn/Kg. Azerbaijan also posted strong growth, with imports rising 49% to 7.14 Mn/Kg.

The category breakdown provides little comfort, with Instant Tea the only segment to record a positive volume variance during the first seven months. All other categories recorded declines compared with the same period in 2025.

In value terms, all categories except Instant Tea recorded gains in rupee terms, but the picture was weaker in dollars. Green Tea was the only category to record a positive dollar variance, while the other categories declined.

The latest figures underline the increasing exposure of Sri Lanka’s tea trade to geopolitical and logistical disruptions along its traditional markets and shipping routes.

With volumes contracting, the average dollar FOB value declining and several important Middle Eastern markets recording steep falls, the industry faces a challenge that cannot be addressed through higher rupee prices alone.

Industry analysts say resilience of markets such as Trkiye, Russia and Saudi Arabia could provide some cushioning, but the first seven months of the year suggest that Sri Lanka’s tea sector is facing both a volume problem and a dollar-value problem at a time when export earnings remain critical to the country’s external position.