Category: Daily Financial Times

SLT-Mobitel mCash has announced the integration of the Government Digital Payment Platform GovPay, designed to streamline and modernise public service delivery.

The integration of GovPay into mCash is a national initiative combining GovPay’s ability to process real-time payments to Government institutions, from traffic fines to Local Government taxes for over 4,000 public services, with mCash’s extensive reach, accelerating Sri Lanka’s digital economy agenda, strengthening financial inclusion, and modernising public service delivery. The initiative bridges citizens, Government, and technology, turning regular payments into a driver of national productivity, inclusion, and trust.

Mobitel customers can simply dial #111# to register for mCash, download the mCash App via Android, iOS, or Huawei AppGallery, and instantly begin making secure digital Government payments through GovPay. In addition, any customer can visit a nearby Mobitel reload outlet to make GovPay payments conveniently over the counter.

GovPay, a collaborative initiative of the Digital Economy Ministry, Information Communication Technology Agency of Sri Lanka (renamed GovTech), and LankaPay, facilitates payments to over 280 Government organisations for over 4,090 citizen services. Citizens can now settle utility bills, educational fees, healthcare charges, and even a wide range of Government dues seamlessly via mCash. Notably, the platform also enables on-the-spot traffic fine payments via GovPay, anytime, anywhere, directly through the mCash app.

Citizens gain convenience and accessibility with round-the-clock payment access. Moreover, Government revenue collection becomes faster, more transparent, and effective. Businesses and especially small and medium enterprises (SMEs) benefit from smoother compliance and reduced transaction costs.

For corporates and industry stakeholders, the integration signals a maturing payments ecosystem and one which reduces friction in Government-linked transactions, supporting greater efficiency and compliance across sectors.

Home Lands Group has marked another significant milestone with the acquisition of its second land parcel within Port City Colombo’s prestigious Central Park District.

The newly acquired land parcel, spanning over three acres in extent, is similar in size and located adjacent to the land previously purchased for the landmark Central Park Boulevard Port City Colombo development, further strengthening Home Lands’ growing footprint within Sri Lanka’s most ambitious urban development project.

The official signing ceremony for the acquisition of the new land parcel took place at Port City Colombo. The event was attended by China Harbour Engineering Company Ltd., (CHEC) Chairman Bai Yinzhan, South Asia and South East Asia Managing Director Wang Gang, CHEC Port City Colombo Managing Director Xiong Hongfeng, and Home Lands Group Chairman/Managing Director Nalin Herath, along with senior representatives of both CHEC Port City Colombo and Home Lands Group.

Home Lands’ decision to further expand its presence within Port City Colombo reflects both confidence in the city’s future and the company’s own financial strength and long-term strategic vision. Notably, the acquisition has been undertaken entirely by Home Lands as a single-developer investment, demonstrating the company’s financial stability, investment capacity, and commitment to driving transformative developments independently.

The new land acquisition comes just three months after Home Lands secured the land parcel for its recently launched twin tower high-rise development Central Park Boulevard Port City Colombo, demonstrating the company’s continued confidence in the strategic importance of the Central Park District at Port City Colombo.

The Central Park District’s 40-acre modern lush green parkland with scenic waterways, combined with futuristic high-rise developments, offers a unique ecosystem where residents can live an enriched life amidst nature, greenery, high-rise luxury, and Indian Ocean views.

Herath said: ‘Home Lands is proud to make another strategic investment within Port City Colombo, reaffirming our confidence not only in this landmark development but also in Sri Lanka’s future. Every investment we make is ultimately an investment in the growth, progress, and potential of our nation.’

While Port City Colombo continues to evolve into one of South Asia’s most significant urban developments, Home Lands’ latest acquisition further reinforces the company’s position as the pioneering force that’s taking Sri Lankan real estate to the world. Backed by a proven track record, strong financial foundations, and an unwavering commitment to excellence, Home Lands continues to invest in the future of Sri Lanka’s real estate industry, creating developments that reflect the highest standards of innovation, and excellence.

A master-planned city developed to international standards, Port City Colombo has been envisioned as a next-generation urban destination designed to attract international investment, global businesses, and world-class developments. Combining modern infrastructure, sustainable urban planning, advanced connectivity, and a globally competitive business environment, the city represents a transformative vision for Sri Lanka’s future economic growth and international positioning.

The Supreme Court yesterday granted special leave to appeal against a Court of Appeal ruling that dismissed a petition challenging the parliamentary eligibility of Public Security Minister Ananda Wijepala.

A three-judge bench comprising Justices Janak De Silva, Menaka Wijesundera and Sampath Wijeratne granted leave to proceed with the appeal and fixed the matter for argument on 3 November.

The appeal was filed by Sri Lanka Podujana Peramuna activist Renuka Dushyantha Perera, who is seeking a declaration that Wijepala was disqualified from serving as a Member of Parliament.

In the original petition, the petitioner alleged that Wijepala, while serving as an MP, had also held the position of Chief of Staff to the President, which, according to the petitioner, rendered him a public officer and therefore ineligible to continue as a Member of Parliament.

The petitioner further sought a declaration that Wijepala was not entitled to sit or vote in Parliament and was disqualified from holding office as an MP.

The Court of Appeal dismissed the writ application on 7 May 2025 after upholding a preliminary objection raised by the Attorney General. The objection argued that the petitioner had failed to name the necessary parties as respondents in the action.

Counsel Vishva Vimukthi appeared for the petitioner, while President’s Counsel Geoffrey Alagaratnam represented Minister Wijepala.

At the Science College Ground, the hosts produced a dominant display to overwhelm Mahanama College 52/7.

Science ran in eight tries and added six conversions to complete a comprehensive victory. Mahanama managed a solitary converted try but struggled to contain the relentless attacking pressure from the home side throughout the match. The convincing win further strengthened Science College’s position in the Bowl Segment competition.

Meanwhile, at the Air Force Ground in Ratmalana, Lumbini College secured a comfortable 28/13 victory over Prince of Wales College. Lumbini crossed the line for four tries and successfully converted all four, showing excellent accuracy off the tee. Prince of Wales responded with two tries and a penalty but were unable to match the attacking flair and disciplined performance displayed by the Colombo school.

Science College occupy second position, while Mahanama College and Prince of Wales College occupy the bottom two places in the standings.

The bottom two teams in the Bowl segment at the conclusion of the tournament will be relegated, making way for Vidyartha College and Dharmaraja College, who will be promoted to Division 1A in 2027.

The release of the G.C.E. Ordinary Level examination results once again marks a moment of celebration for some and disappointment for many others. Of the more than 450,000 students who sat the examination, roughly 73% have qualified to pursue Advanced Level studies. For those students and their families, the results bring relief and renewed ambition.

For decades, Sri Lanka’s education system has been built around a narrow and highly competitive pathway: Ordinary Level, Advanced Level, university admission, and eventually employment. It is a system designed to identify and reward top academic performers. Yet the reality is that only a fraction of those who begin that journey reach the final destination. Even those who reach university level often struggle to secure employment, as their competencies may be largely academic, while lacking many of the other skills required in a modern marketplace.

While hundreds of thousands qualify for A/L studies, only around 40,000 eventually secure places in State universities. Tens of thousands fall away at each stage. Many are left to navigate an uncertain future with limited guidance, insufficient practical skills, and few structured alternatives. This is not a reflection of individual failure. It is a reflection of a system that has long equated success with a single academic route.

Sri Lanka has every reason to be proud of its educational achievements, including high literacy rates, broad access to schooling, and a strong public education tradition. But access alone is no longer enough. Education must prepare young people not only to pass examinations but also to succeed in life.

Students who do not qualify for A/Ls or later miss out on university admission should not feel that their opportunities have ended at the age of 16 or 19. A modern education system must offer multiple pathways to achievement. Vocational education, technical training, apprenticeships, entrepreneurship support, digital skills, creative industries, and professional certification programs must be given equal dignity and visibility.

Even among those who do graduate from university, concerns remain. Employers frequently point to gaps in practical skills, communication abilities, adaptability, and readiness for the modern workplace. Academic achievement alone cannot guarantee success in an increasingly competitive and rapidly changing economy.

This is why education reform cannot simply mean changing syllabuses or examination formats. It requires a broader rethink of what schools are expected to produce. Our schools must nurture well-rounded individuals: young people who are confident, creative, disciplined, and adaptable. Sports, cultural engagement, leadership, aesthetics, technology, and community involvement should stand alongside academic learning, not exist at its margins. Education should help students discover their strengths rather than rank them exclusively through examinations.

It is therefore encouraging that the present Government has placed renewed focus on education, with the Prime Minister personally holding the portfolio. This signals a recognition that education reform must remain a national priority. Meaningful implementation must follow.

As the O/L results are absorbed in homes across the country, there will be many students celebrating and many confronting disappointment. Those young people deserve more than encouragement. They deserve alternatives, support, and genuine opportunities to build successful futures.

The country cannot afford an education system that serves only the top few percent while leaving the majority to find their own way. Success should not depend on remaining within one narrow corridor. A stronger education system is one that creates many doors and ensures that every young person has the opportunity to walk through one.

Sri Lanka and Thailand are looking to leverage the recently concluded Sri Lanka-Thailand Free Trade Agreement (SLTFTA), stronger business-to-business engagement, and their strategic positions as gateways to South and Southeast Asia to significantly deepen bilateral trade and investment ties, speakers said at the Silver Jubilee celebrations of the Sri Lanka-Thailand Business Council.

Marking its 25th anniversary, the Council brought together government officials, diplomats and business leaders who highlighted both the progress achieved over the past quarter century and the untapped opportunities that remain between the two economies.

Thailand’s Ambassador to Sri Lanka Paitoon Mahapannaporn, noted that bilateral trade has gained considerable momentum in recent years, with trade volumes increasing by about 48%, while investment links between the two countries have become well established.

He pointed to Thailand’s largest investment in Sri Lanka through INSEE Cement, part of Siam City Cement, and Sri Lanka’s largest investment in Thailand by Hayleys Group, as examples of the growing economic relationship.

However, Mahapannaporn argued that one of the key barriers to stronger economic expansion remains the limited familiarity between the two business communities.

‘The challenge that hinders our economic expansion is that our business sectors know each other too little, leading to lack of trust and confidence,’ he said, stressing that direct engagement through trade missions, business forums and site visits is essential to building stronger commercial relationships.

To address this gap, the Royal Thai Embassy facilitated a 27-member Thai business delegation comprising representatives from the Thai Chamber of Commerce and Industry and the Board of Trade of Thailand to visit Sri Lanka for business forums, matchmaking sessions and corporate site visits.

The Ambassador identified the implementation of the Sri Lanka-Thailand Free Trade Agreement as a major catalyst for future growth, saying it would help boost trade and investment while integrating both countries more deeply into regional supply chains.

Foreign Employment and Tourism Minister Vijitha Herath said the Government is committed to expanding the long-standing economic, cultural and historical relationship between the two countries in line with emerging global trends.

He highlighted opportunities in trade, tourism, transport and logistics, technology and sustainable development, emphasising that continued cooperation and mutual trust would be critical in unlocking future growth.

‘The steadily growing import and export trade volumes between the two countries year-after-year are a clear indicator of the progress achieved jointly,’ Herath said.

The Minister also praised the Sri Lanka-Thailand Business Council for serving as a practical bridge between entrepreneurs and businesses in both countries, helping create opportunities that previously did not exist.

Business leaders echoed the view that the next phase of bilateral cooperation should extend beyond traditional trade sectors.

In his address, the Sri Lanka-Thailand Business Council President Rizan Nazeer reflected on the organisation’s evolution since its establishment in 2001, noting that it was formed through the initiative of the then Thai Ambassador and a group of Sri Lankan business leaders who saw the potential for closer economic cooperation.

Over the past 25 years, the Council has facilitated trade missions, business forums, investment discussions and networking initiatives aimed at promoting trade, investment, tourism and business partnerships.

Among its milestones were the 2009 ‘Opening New Vistas’ business forum in Thailand, the signing of a Memorandum of Understanding (MoU) with the Board of Trade of Thailand in 2022, and the visit of the Chairman of the Board of Trade of Thailand to Sri Lanka in 2023.

The Council President said significant opportunities exist in tourism and hospitality, food processing, agriculture, logistics, gems and jewellery, apparel, rubber-based products, technology, education, wellness and professional services.

He also welcomed a 25-member Thai business delegation participating in business-to-business meetings in Sri Lanka, expressing confidence that the engagements would lead to new partnerships, investments and trade opportunities.

Thailand’s senior trade representative, meanwhile, underscored the strategic importance of both countries as regional gateways, describing Sri Lanka as Thailand’s gateway to South Asia and Thailand as Sri Lanka’s gateway to Southeast Asia.

She noted that in an increasingly interconnected global economy, resilient supply chains and trusted partnerships are becoming more important than ever.

Reflecting on the 70th anniversary of diplomatic relations celebrated in 2025 and the Council’s Silver Jubilee this year, she said the two countries should now focus on expanding cooperation in goods, services, investment and people-to-people exchanges.

Speakers throughout the event emphasised that centuries-old cultural, religious and historical ties continue to provide a strong foundation for economic cooperation, while the SLTFTA and increasing private-sector engagement are expected to open a new chapter in Sri Lanka-Thailand relations.

The Silver Jubilee celebrations concluded with a shared call for deeper economic integration, stronger regional connectivity and enhanced business collaboration as both countries seek to position themselves more effectively within Asian and global value chains.

Opposition MP and Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva has defended his scrutiny of the Government’s proposed tax reforms, arguing that Parliament’s public finance oversight role is essential to ensuring tax policy is implemented fairly and effectively.

Responding to criticism from Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Dr. de Silva said his role as CoPF Chairman, a position reserved for the Opposition under Parliamentary Standing Orders, was to question and examine Government policy rather than obstruct it.

‘My role as CoPF Chair, reserved by Parliamentary standing orders for the opposition, is to ask hard questions about Government policy. Not to obstruct. Not to politicise. To scrutinise,’ Dr. de Silva said in a social media post.

He said several concerns were raised during last week’s CoPF examination of proposed Value Added Tax (VAT) amendments, including the reduction of the VAT registration threshold, the treatment of foreign digital platforms, the continued application of the Social Security Contribution Levy (SSCL), and the taxation of online betting operators.

Dr. de Silva noted that businesses with daily turnover of around Rs. 100,000 would fall within the VAT net from July 2026 under the proposed threshold changes, leaving many small enterprises with limited time to understand and comply with the new requirements.

He proposed that the Government provide small and medium enterprises (SMEs) with additional support, including capacity-building programs and incentives to adopt Point of Sale (POS) systems, to facilitate compliance.

The CoPF Chairman also highlighted what he described as unequal treatment between local and foreign digital platforms, citing ride-hailing operators as an example. He argued that differences in VAT obligations could place domestic businesses at a competitive disadvantage.

In addition, Dr. de Silva raised concerns about VAT collection from foreign-owned tourism accommodation providers that process payments offshore, suggesting that enforcement mechanisms may need to be strengthened.

Referring to discussions at the CoPF, he said officials had indicated that the combined impact of VAT and the SSCL resulted in an effective consumer tax burden of 22% to 23%, and called for a clear timeline for the eventual removal of the SSCL.

He also said the implementation of VAT on online betting operators would be closely monitored ahead of the 30 June deadline.

‘Sound tax policy is not just about collecting more. It is about collecting fairly, efficiently, and in a way that keeps businesses willing to stay in the formal economy,’ Dr. de Silva said.

He added that he remained committed to supporting a strong and equitable formal economy through effective Parliamentary oversight of public finance matters.

British Prime Minister Keir Starmer has announced his resignation as Prime Minister and leader of the Labour Party following growing pressure within the party over recent political setbacks and declining public support.

Speaking outside 10 Downing Street yesterday, Starmer confirmed his decision after days of speculation over his future.

The resignation comes less than two years after Labour secured a landslide victory in the 2024 UK General Election, which returned the party to power after 14 years in opposition.

Reports indicate that increasing support within Labour for former Greater Manchester Mayor Andy Burnham, together with concerns over the Government’s performance, contributed to calls for a change in leadership.

The Labour Party is expected to commence the process of selecting a new leader, with Burnham widely viewed as a leading contender to succeed Starmer.

Starmer became Prime Minister in July 2024 after leading Labour to its first general election victory since 2010.

The UK has had six Prime Ministers since 2016.

President Anura Kumara Dissanayake yesterday assured the apparel industry of the Government’s full support to overcome sectoral challenges and drive an export-led growth strategy, while inviting investors to expand manufacturing operations into rural areas to boost dollar earnings and economic activity.

The commitment was made during a high-level discussion at the Presidential Secretariat attended by leading apparel industry executives and investors, where participants reviewed key obstacles facing the sector and the support required to successfully implement the Export Development Board’s (EDB) new export strategy.

The meeting comes as Sri Lanka seeks to strengthen foreign exchange inflows and accelerate economic recovery through export growth, with the apparel industry remaining the country’s largest merchandise export sector.

During the discussions, the President stressed that strengthening dollar-generating industries was essential to maintaining macroeconomic stability, noting that while investments denominated in Sri Lankan rupees had increased, the country needed to expand foreign currency earnings to ease pressure on the external sector.

He said economic recovery could be sustained by increasing export revenues and other dollar inflows while keeping rupee-denominated expenditure under control.

A key focus of the discussions was the Government’s proposal to encourage industrial expansion into rural regions. The President said decentralising industrial activity could significantly strengthen the export economy while creating employment opportunities outside major urban centres.

As part of this effort, the Government is considering a ‘Plug and Play’ investment model under which investors would be provided with ready-built factory premises and supporting infrastructure, reducing start-up costs and speeding up project implementation.

Land-related issues affecting investors also featured prominently during the meeting. The President assured business leaders that the Government would take steps to safeguard the value of land assets and ensure policy consistency, adding that legal reforms aimed at addressing longstanding concerns were already being prepared.

The President also acknowledged difficulties faced by local raw material suppliers arising from the current Value Added Tax (VAT) framework and requested industry representatives to submit proposals on alternative relief measures that could support domestic suppliers without undermining fiscal objectives.

Participants further discussed strategies to expand market access through new and enhanced free trade agreements, as well as measures to secure larger export quotas in key international markets.

In a move aimed at improving Sri Lanka’s trade facilitation framework, officials informed the meeting that the National Single Window for Trade is expected to become operational by the end of July, streamlining trade-related procedures and reducing administrative bottlenecks. The National Single Window for Investment is meanwhile scheduled for completion before the end of the year.

The President also outlined broader governance reforms aimed at improving the business environment, including measures to strengthen legal and technological mechanisms to prevent illicitly acquired wealth from being transferred overseas.

He further disclosed that the Government plans to introduce new legislation to combat organised crime while safeguarding civil liberties, replacing the existing Prevention of Terrorism Act framework.

Industry representatives welcomed the opportunity to engage directly with the President and called for the establishment of a monthly forum to discuss operational issues and policy concerns with relevant Government agencies.

Responding positively to the proposal, the President instructed officials to make arrangements for regular engagements.

Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suriyapperuma, Imports and Exports Controller General Upulmalee Premathilaka, EDB Chairman Mangala Wijesinghe, officials representing the Inland Revenue Department, Sri Lanka Customs, and other relevant institutions, as well as a number of leading business leaders and investors from Sri Lanka’s apparel sector, were present at the discussion.

The Colombo Stock Exchange (CSE) has announced changes to the constituents of the active S and P Sri Lanka 20 Index (S and P SL20) following the 2026 mid-year rebalancing conducted by S and P Dow Jones Indices.

According to the CSE, ACL Cables PLC, CIC Holdings PLC and the voting shares of Commercial Bank of Ceylon PLC will be included in the index, while LB Finance PLC and People’s Leasing and Finance PLC will be excluded. The changes took place yesterday (22 June).

The S and P SL20 comprises the 20 largest companies listed on the CSE by total market capitalisation that meet minimum size, liquidity and financial viability requirements. Constituents are weighted by float-adjusted market capitalisation, subject to a single stock cap of 15%.

The CSE said the index is designed in accordance with international standards and classifies stocks based on the Global Industry Classification Standard (GICS), developed jointly by S and P Dow Jones Indices and MSCI.

To qualify for inclusion, a company must maintain a minimum float-adjusted market capitalisation of Rs. 500 million, a six-month median daily traded value of at least Rs. 0.25 million and report positive net income during the 12 months preceding the rebalancing reference date.

Following the revision, the S and P SL20 will include Access Engineering, ACL Cables, Central Finance, CIC Holdings, Commercial Bank, DFCC Bank, Dialog Axiata, Hatton National Bank, Hayleys, Hemas Holdings, John Keells Holdings, Lanka IOC, LOLC Holdings, Melstacorp, National Development Bank, Nations Trust Bank, Sampath Bank, Singer Sri Lanka, Sunshine Holdings and Vallibel One.