Category: Daily Financial Times

Sri Lanka successfully participated in the 10th China-South Asia Exposition (CSAE) and the 30th China (Kunming) Import and Export Fair held from 11 to 16 June 2026 in Kunming, China, further strengthening trade, investment and economic cooperation between Sri Lanka and China.

The Sri Lankan delegation was led by Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, and included Minister (Commercial) of the Embassy of Sri Lanka in Beijing and the officials of the Department of Commerce, and over 250 business representatives from around 100 Sri Lankan exporters. Deputy Foreign Affairs and Foreign Employment Minister Arun Premachandra also participated in the China-South Asia Cooperation Forum held alongside the Exposition.

Prior to the opening of the Exposition, the delegation participated in the 3rd Seminar between Chinese and South Asian Government Industries, Universities and Research Institutions, which focused on innovation, research collaboration, technology transfer and industrial partnerships.

Addressing the opening ceremony, Minister Samarasinghe emphasised the importance of strengthening market access, investment cooperation, SME partnerships, digital trade, and trade facilitation to support export-oriented economies. He underscored the need for deeper economic collaboration with China to promote sustainable growth, enhance trade opportunities, and foster shared prosperity across the region.

The Minister also inaugurated the Sri Lanka Pavilion, which featured 100 booths spanning more than 1,000 square metres and showcased a diverse range of Sri Lankan products and services, including Ceylon tea, spices, gems and jewellery, coconut-based products, seafood, apparel, handicrafts, wellness products, and aviation-related services.

Sri Lanka’s participation in the exposition has grown significantly in recent years, with the 2026 delegation representing one of the country’s largest business contingents to attend the event. Participating Sri Lankan companies reported successful product sales during the Fair and established promising business-to-business partnerships, paving the way for potential export deals, distributorship arrangements, and long-term commercial collaborations. Sri Lanka also participated in the South Asia Commodity (Tea) Festival to further promote Ceylon Tea in the Chinese market.

A dedicated Business-to-Business (B2B) Matchmaking Event was organised by the authorities of the Yunnan Province in parallel with the Exposition to facilitate direct engagement between Sri Lankan and Chinese enterprises. A notable outcome of the event was the signing of a Memorandum of Understanding (MoU) between M/S Premium Beverages Ltd., a Sri Lankan liquor exporter, and one of China’s leading winery and liquor distribution companies to promote Sri Lankan products in the Chinese market.

During the visit, Minister Samarasinghe and the delegation held discussions with the Governor of Yunnan Province and the Department of Commerce of Yunnan Province on expanding trade and investment cooperation, improving market access and strengthening logistics connectivity between Sri Lanka and China.

The delegation also visited the Kunming Comprehensive Bonded Zone, where the Chinese Government has expressed its willingness to provide Sri Lankan exporters with access to free warehouse facilities under the “Three Facilitations and Three Exemptions” initiative. The proposed facility is expected to strengthen supply chain connectivity, improve trade efficiency, and support the expansion of Sri Lankan products in the Chinese market.

The China-South Asia Exposition, jointly organised by the Ministry of Commerce of China and the Government of Yunnan Province, continues to serve as one of the region’s premier platforms for promoting trade, investment, business networking, and people-to-people exchanges between China and South Asian countries. The organisers provided the entire Sri Lanka Pavilion free of charge, while the Department of Commerce of Sri Lanka successfully coordinated the country’s participation in close collaboration with the organisers, participating Sri Lankan companies, and other key stakeholders. In recognition of its outstanding efforts in organising and facilitating Sri Lanka’s participation, the Department of Commerce was awarded the “Outstanding Exhibition Organiser Award” by the Exposition organisers.

Sri Lanka’s successful participation at the Exposition has further strengthened its longstanding ties with China and created new opportunities for trade, investment, and business collaboration. The Government of Sri Lanka remains committed to supporting exporters, expanding access to international markets, and deepening economic engagement with China, the world’s second-largest consumer market.

A delegation led by Institute of Area Studies Research Centre for Global Governance and International Communication Director and Peking University, China Institute of International Communication Dean Prof. Wang Weijia, conducted a series of high-level research interviews in Colombo recently.

During their visit, the delegation met with several government and state sector representatives, members of the legal fraternity, members of the armed forces and experts from leading international affairs think tanks, engaging in wide-ranging discussions on Sri Lanka-China cooperation.

Trade and investment as key growth drivers

At a meeting with Western Province Governor Presidential Special Envoy on Foreign Investments and Hanif Yusoof, the delegation engaged in in-depth discussions on Sri Lanka’s international trade and investment landscape. Governor Yusoof noted that international trade and foreign direct investment are critical to Sri Lanka’s future economic growth, with logistics, energy, and tourism identified as priority sectors for attracting foreign capital.

He further highlighted the longstanding involvement of Chinese enterprises in Sri Lanka’s infrastructure, energy, road, and telecommunications sectors, noting their significant contribution to the country’s economic development. Looking ahead, he stressed that Sri Lanka should leverage its strategic geographic position to build regional supply chain networks and deepen cooperation with Chinese enterprises in export-oriented manufacturing.

A relationship “Beyond Commercial”

Speaking with Treasury and Ministry of Finance, Planning and Economic Development Secretary Dr. Harshana Suriyapperuma, the delegation explored various dimensions of the Sri Lanka-China relationship. Dr. Suriyapperuma emphasised that the two countries are bound by longstanding historical, cultural and sentimental ties that extend well “beyond commercial and transactions”.

In this context, he highlighted Port City Colombo as a symbol of the enduring partnership between Sri Lanka and China, and described the project as an important platform with the potential to contribute to Sri Lanka’s long-term economic growth and international connectivity.

Exploring new models of cooperation

During the interview with Board of Investment of Sri Lanka (BOI) Acting Chairman Dr. Sulakshana Jayawardena, discussions focused on Sri Lanka’s current investment landscape and potential new models for Sri Lanka-China cooperation.

Dr. Jayawardena noted that foreign direct investment (FDI) projects such as Port City Colombo generate both direct and indirect economic benefits, including foreign capital inflows, employment opportunities for local citizens, and technology transfer. Beyond infrastructure development, he noted that high-tech manufacturing, pharmaceuticals, and textiles should serve as key areas for deeper Sri Lanka-China cooperation.

Looking ahead, he hopes to leverage academic and think-tank institutions such as Peking University to create more platforms for mutual exchange and collaboration. In particular, he highlighted the value of learning from China’s experience in special economic zone governance, manufacturing development, and workforce training, with a view to exploring new avenues for deeper bilateral cooperation.

Throughout the visit, Prof. Wang introduced Peking University’s academic strengths in area studies and international communication to the officials and experts engaged during the delegation’s meetings. He also expressed the university’s commitment to conducting further research aligned with Sri Lanka’s development priorities, while fostering scholarly and cultural exchanges that strengthen mutual understanding and serve as a bridge between the two countries.

The Inland Revenue Department (IRD) yesterday clarified that individuals can sell their residential properties and personal vehicles without paying tax, subject to specified conditions under the amended Inland Revenue Act.

Residential property owners would qualify for a full tax exemption on the sale of a house if they have held legal ownership of the property for at least three years prior to the sale and have resided at the property for more than two years during that period.

If both conditions are satisfied, the entire proceeds from the sale would be exempt from tax, it said.

The IRD also clarified that transfers of property to family members or children are exempt from tax, with tax implications arising only when properties are sold to third parties.

In relation to vehicles, the IRD said the previous taxation framework has been removed under the Inland Revenue (Amendment) Act, No. 11 of 2026.

According to the Department, gains arising from the sale of personal vehicles have been exempt from tax with retrospective effect from 1 April 2024.

The exemption applies regardless of a vehicle’s age, condition, or model, provided it is a personal vehicle and not held as trading stock or as a business asset.

As a result, the full profit arising from the sale of a personal vehicle is exempt from tax.

Sarvodaya Development Finance PLC (SDF) has delivered a strong financial performance for the year ended 31 March 2026, recording significant growth in income, profitability, portfolio expansion, and asset quality while continuing its commitment to responsible and inclusive finance.

For the financial year under review, SDF reported total income of Rs. 6.42 billion, a year-on year increase of 46.8%. Interest income rose by 43.8% to Rs. 5.85 billion, driven by business expansion and growth in earning assets. Net Interest Income increased by 35.4% to Rs. 3.58 billion, while Total Operating Income grew by 40.8% to Rs. 4.15 billion, reflecting the Company’s ability to generate strong and sustainable earnings.

Profitability improved substantially during the year. Operating Profit before Tax on Financial Services increased by 59.9% to Rs. 1.82 billion, while Profit Before Tax rose by 63.8% to Rs. 1.36 billion. Profit for the Year increased by 73.1% to Rs. 820.1 million compared with Rs. 473.8 million in the previous year. Earnings per share improved to Rs. 5.48, demonstrating enhanced value creation for shareholders.

The Company’s balance sheet expanded significantly, with total assets increasing by 65.8% to Rs. 37.37 billion as at 31 March 2026. Financial assets at amortised cost, including loans and receivables, grew by 67.2% to Rs. 20.60 billion, while lease rental receivables increased by 34.0% to Rs. 9.19 billion. SDF also strengthened its funding profile through debt securities, including Sustainable Bonds, amounting to Rs. 2.09 billion.

Chief Executive Officer Nilantha Jayanetti said: “The results achieved during FY2025/26 reflect the strength of our business model, disciplined growth strategy, and commitment to delivering responsible financial solutions. We remain focused on creating sustainable value while supporting communities and enterprises across Sri Lanka.”

SDF maintained a strong capital position, with a Tier 1 Capital Adequacy Ratio of 15.48% and a Total Capital Adequacy Ratio of 22.13%, both comfortably above regulatory requirements. Asset quality also improved, with the Gross Stage 3 Loans Ratio declining to 4.93% from 7.88% and the Net Stage 3 Loans Ratio improving to 2.94% from 5.70%. The Stage 3 Impairment Coverage Ratio strengthened to 42.60%.

Operational efficiency improved as the Cost-to-Income Ratio reduced to 42.99%, while Return on Equity increased to 19.60%. Reflecting its stronger financial position, SDF’s external credit rating was upgraded to Lanka Ratings (SL) BBB- Stable.

With a network of 56 branches, SDF remains committed to advancing financial inclusion, supporting sustainable enterprise growth, and contributing to Sri Lanka’s long-term socio-economic development.

West Indies Academy took a 1-0 lead in the three-match unofficial ODI series when they pulled off a close two-wicket win against Sri Lanka Emerging Players in the first match played at the SSC grounds on Tuesday.

In a match reduced to 36 overs a side, Sri Lanka Emerging Players invited to bat first were bowled out for 184 with skipper Nipun Dananjaya being the principle scorer making a polished 65 off 73 balls (5 fours). Left-arm seamer Jediah Blades and leg-spinner Zishan Motara shared six wickets between them.

In West Indies Academy’s reply Damel Evelyn, the 24-year-old right-hander from Barbados played a crucial knock to see his side home. Despite the fall of wickets from the other end Evelyn kept one end going to finish on 77* off 97 balls (8 fours)

At one stage West Indies Academy were cruising to victory at 164-4 courtesy a 110-run stand between Evelyn and Kevlon Anderson (58 off 45 balls, 8 fours), when off-spinner Kavija Gamage introduced into the attack picked up 4/18 in 5 overs to cause flutters in the West Indies Academy camp as they slipped to 181-8. But West Indies had enough overs under their belt to see them home. The second match of the series takes place at the same venue today. – [ST]

Scores:

Sri Lanka Emerging Players 184 (33.4) (Sineth Jayawardena 32, Asitha Wanninayake 23, Nipun Dananjaya 65, Ranesh Silva 21, Jediah Blades 3/42, Raneico Smith 2/25, Zishan Motara 3/32)

West Indies Academy 185-8 (31) (Damel Evelyn 77*, Kevlon Anderson 58, Traveen Mathew 3/30, Kavija Gamage 4/18)

Yi Jing at ITC Ratnadipa will be introducing Dim Sum and Co., a first-of-its-kind curated series of dim sum in Colombo, from 26 June to 05 July, 2026.

The limited-time dining series features a newly curated selection of handcrafted dim sum, served for lunch and dinner, paired with signature cocktails designed to complement each dish. The beverage program is crafted by Yi Jing’s mixologist to enhance flavour profiles and highlight the character of the cuisine. As part of an exclusive offer, Club ITC Members can enjoy 20% savings at Yi Jing, while Club ITC Culinaire Sri Lanka members continue to receive savings of up to 50%.

As younger diners gravitate towards authentic global cuisines and meaningful culinary experiences, interest in regional Chinese cuisine continues to grow. Dim Sum and Co. responds to this shift by exploring the traditions, flavours, and communal dining culture that define China’s rich culinary heritage. Tracing its origins to the tea houses along ancient trade routes, dim sum was designed to be shared over cups of tea, bringing people together through food and conversation. Rooted in this Cantonese tea-house tradition, the series combines time-honoured craftsmanship with contemporary interpretations tailored to Colombo’s evolving palate.

“Dim sum is a cuisine that demands both patience and precision, where every fold, filling and flavour has a purpose,” said Chef Prithvi. “With this menu, we wanted to go beyond familiarity and introduce guests to both authentic techniques and modern interpretations that reflect Yi Jing’s culinary philosophy. The result is a collection that is both respectful of its origins and exciting for today’s diner.”

Guests can expect 9 distinct handcrafted dim sums, including Sweet Corn and Pepper Sui Mai, Charred Mushroom Crystal Dumplings, Spinach and Black Pepper Dumplings, Lobster Har Gao and White Fish and Coriander Dumplings. The menu also features Fire Cracker Chicken Pot Stickers, Artisanal Beef Wontons, Pan-Fried Lamb and Scallion Bao and Char Siu Pork Rice Rolls, each dish embodying Yi Jing’s interpretation of the rich artistry and regional diversity of Chinese dim sum traditions.

Dim Sum and Co. further strengthens ITC Ratnadipa’s position as a destination for immersive, culture-driven culinary experiences in Colombo, where global traditions are reimagined through exceptional ingredients, craftsmanship and hospitality.

A dispute over the allocation of a Parliament committee room has disrupted the work of the Committee on Public Finance (CoPF), its Chairman MP Dr. Harsha de Silva told Parliament yesterday.

Raising the issue in the House, Dr. de Silva said the activities of the CoPF had effectively come to a standstill after the Committee on Public Enterprises (COPE) sought exclusive use of the committee room from Tuesday to Friday, from morning until evening.

He said the arrangement had left little room for the CoPF to conduct its proceedings and fulfil its oversight responsibilities.

“Committees do not own rooms in Parliament,” Dr. de Silva said, urging a resolution to the matter.

The comments point to growing tensions over parliamentary resources at a time when both oversight committees are engaged in reviewing key public finance and governance issues.

No immediate response from the COPE was made in Parliament regarding the matter.

Richard Pieris Finance Ltd., has reported a strong financial performance for the year ended 31 March 2026, recording a Profit Before Taxes of Rs. 701.6 m, reflecting continued business growth, operational resilience, and strengthened market confidence.

The results demonstrate the Company’s ability to deliver sustainable growth while maintaining financial discipline in an increasingly competitive operating environment, Richard Pieris Finance said in a statement.

The Company recorded a Profit After Tax of Rs. 448.7 m for the financial year, compared to Rs. 254.7 m in the previous year. The strong performance was supported by growth across its core business segments, improved operational efficiencies, disciplined portfolio management, and a continued focus on customer-centric financial solutions.

Total assets increased to Rs. 24.57 b from Rs. 20.24 b a year earlier, while customer deposits grew to Rs. 11.68 b, reflecting the continued confidence placed in the Company by depositors and investors. Shareholders’ funds strengthened to Rs. 4.43 b, further reinforcing the Company’s capital base and long-term financial resilience. These results underscore the stability of Richard Pieris Finance’s operating model and its ability to achieve growth while maintaining prudent risk management and strong governance standards.

The Company’s lending portfolio continued to expand across key segments, with loans and advances increasing to Rs. 10.84 b and lease receivables growing to Rs. 7.41 b. Supported by a diversified portfolio that includes vehicle leasing, gold loans, Islamic finance, consumer lending, and the recently introduced Sarumaga mortgage solution, Richard Pieris Finance continues to strengthen its position as a trusted provider of financial services to customers across Sri Lanka.

Chairman Nalin Wijekoon said: “These results reflect the resilience of our business model, the confidence placed in us by our customers, and the commitment of our team. Despite operating in a challenging environment, we have remained focused on sustainable growth, prudent governance, and creating long-term value for all stakeholders. Our continued progress is a testament to the trust that customers, investors, and business partners place in Richard Pieris Finance.”

CEO Lohika Fonseka said: “Our performance during FY 2025/26 reflects the steady momentum we have built across the business. We continue to strengthen our core operations, expand our product offering, enhance customer accessibility, and invest in the systems and capabilities required to support the next phase of growth. Our focus remains on delivering responsible financial solutions while maintaining strong standards of service, governance, and risk management. As we continue to grow, we remain committed to building a stronger, more agile institution capable of meeting the evolving financial needs of customers across the country.”

The Company’s performance during the year was further supported by a strengthened governance framework led by an experienced Board of Directors comprising professionals with extensive expertise in banking, finance, risk management, audit, human resources, technology, and corporate strategy. This breadth of experience continues to provide strategic direction while ensuring sound oversight and long-term sustainability.

Net Operating Income increased to Rs. 1.74 b during the year, reflecting growth in business volumes and improved operational performance. The Company also continued to maintain a balanced approach to growth, supported by prudent risk management practices and a disciplined focus on portfolio quality.

As part of its ongoing growth strategy, Richard Pieris Finance continued to invest in digital innovation, operational excellence, and customer accessibility. During the year, the Company launched its Loan Origination System (LOS) Mobile App to streamline internal loan processing and improve operational efficiency, while also introducing its Device Finance solution to provide customers with convenient access to Samsung smartphones through simplified financing and flexible repayment options. These initiatives, together with ongoing enhancements to the Company’s cybersecurity framework aligned with globally recognised standards, reflect Richard Pieris Finance’s commitment to delivering greater convenience, efficiency, and trust through technology.

Supported by its Fitch Rating of ‘A(lka)’ with a Stable Outlook, Richard Pieris Finance remains well-positioned for future growth. The Company’s strong financial fundamentals, growing branch network, diversified portfolio, robust capital base, and the backing of the Richard Pieris Group provide a solid platform for continued expansion while ensuring stability and confidence for customers and stakeholders alike.

Backed by the strength, heritage, and credibility of one of Sri Lanka’s most respected conglomerates, Richard Pieris Finance continues to benefit from the support and stability associated with the Richard Pieris Group, further reinforcing its long-term sustainability and ability to create value for customers, investors, and business partners.

The ‘Collective for Social Media Declaration'(CSMD) hereby expresses its grave concern regarding the ‘Chartered Institute Of Media Professionals Of Sri Lanka’ gazetted by the Government in June 2026, which poses a serious risk of severely restricting the digital civil space and the freedom of expression of independent voices in this country. While this bill presents itself as introducing and maintaining professional standards in the media sector, it carries a high potential of becoming a repressive tool that directly silences independent journalism and professional criticism in practice.

It is factually clear that the very initial operation of this bill, upon enactment, opens the door to direct political interference. Under Clause 5(4) of the bill, the ‘Interim Council’ appointed for the first year of the act’s operation falls entirely under the influence of the Minister in charge of the subject. This council, composed of members nominated with the consent of the Ministry Secretary and the Minister, is empowered to determine the foundational criteria for selecting members of the permanent council – paving the way for the institution’s very foundation to be shaped according to political will, devoid of any independent professional basis.

In this context, the three primary threats posed by this bill – particularly to the digital space, social media activists, and content creators – can be identified as follows:

1. Entrapping digital creators through the definition of ‘Media Professional’

This bill directly includes not only traditional journalists but also ‘content creators’ and ‘content editors’ operating on online platforms such as YouTube, Facebook, and TikTok within the legal scope of ‘media professional.’ While on the surface this may appear to be professional recognition or appreciation extended to them, its true underlying intention is to bring independent citizens under an institutional and state regulatory framework.

2. The risk of vague ‘Misconduct’ rules and disciplinary control

The governing council established by the bill is granted full authority to impose a professional code of ethics and exercise disciplinary control over members. The most serious legal gap therein is that ‘professional misconduct’ is not specifically defined within the bill itself. Leaving this to be determined by rules subsequently formulated by the governing council creates a broad political opening to persecute independent journalists by labeling any content critical of the Government or corrupt officials as ‘unethical’ or ‘misconduct.’

3. The ‘Triple Legal Threat’ converging with other repressive legislation

If a social media activist’s professional registration is revoked through disciplinary proceedings under this bill, the impact is not limited to mere institutional punishment. A deadly ‘triple legal trap’ is activated here, where this bill converges with the already-enforced Online Safety Act (OSA) and the proposed Protection of the State from Terrorism Act (PSTA).

As a practical illustration: an independent social media activist (YouTuber) who exposes large-scale Government corruption could have their professional registration revoked under this bill on grounds of ‘ethical violation.’ They could then be reduced to the status of an ordinary unofficial citizen, after which the content could be removed from the internet under the Online Safety Act(OSA) on claims of spreading misinformation, and punishment imposed. Furthermore, if the exposure triggers public outrage, it could be framed as inciting anti-state sentiment, and if the proposed PSTAl is passed, the mechanism would be in place to arrest the individual without a warrant.

Our request and emphasis

As a collective that stands for and operates with socially responsible, human rights-based ethical social media activism, we make our emphasis on that ethical foundation.

The combination of these laws has the full capacity to directly or indirectly threaten the freedom of speech and expression guaranteed under Article 14(1)(a) of the Constitution, and to create a dark era of ‘self-censorship’ in this country’s digital space – where media personnel, especially social media activists, censor themselves out of fear of legal punishment.

Therefore, we strongly urge the National People’s Power (NPP) Government to immediately withdraw this bill, which suppresses civil space and the right to criticise under the guise of professionalism. We, as the ‘Collective for Social Media Declaration (CSMD),’ also earnestly call upon all civil society organisations, media professionals, and citizens who respect democracy to immediately unite in defense of both media freedom and democratic rights in this country.

The Social Media Declaration collective is a coalition established by civil society organisations, citizen activists, websites, and subject-matter experts, with the aim of promoting a ‘human rights-based’, Socially Responsible use of Social Media’. This collective is dedicated to advancing human rights, including digital rights, and to systematically analysing online content through research, advocacy, training, awareness-raising, and critical inquiry. It continuously strives to foster and sustainably promote democratic discourse in online spaces grounded in internet freedom, transparency-openness, and democratic values. In this way, the collective remains committed to ensuring societal well-being through the influence of technology and to encouraging the development of responsible, ethical use of social media in the digital age.

The following organisations belong to this collective. Sri Lanka Working Journalists Association; Jaffna Press Club; Eastern Provinces Journalists Forum; Centre for Policy Alternatives; Human Elevation Organisation; Movement for Land and Agricultural Reform; ActNow Youth Campaign; Wedabima Media Collective; National Collaboration Development; Foundation Best Vision Foundation; Internet Media Action; maatram.org; vikalpa.org and groundviews.org

Export Development Board (EDB) Chairman Mangala Wijesinghe yesterday said Sri Lanka expects rupee-to-rupee trade with India to significantly boost bilateral commerce, with authorities targeting around a 30% to 40% increase in trade exchanges within two years and a 15% to 20% rise in the first year of implementation.

Addressing the media, he described the initiative as a progressive step that would reduce transaction costs, eliminate currency conversion losses, and lessen dependence on the US dollar for bilateral trade.

“It reduces pressure on scarce hard currency reserves, preserving dollars for uses where they are truly necessary, while rupee-to-rupee trade flows freely between our two economies,” he said.

The initiative forms part of a broader effort by both countries to deepen economic integration and facilitate trade settlements directly in Indian Rupees (INR) and Sri Lankan Rupees (LKR), reducing exposure to exchange rate volatility and global dollar liquidity pressures.

According to Wijesinghe, the Indian High Commission in Colombo is actively supporting the initiative and is working closely with the Central Bank of Sri Lanka (CBSL) to strengthen trade-related financial transactions between the two countries.

“We have already noticed a favourable response,” he said, noting that discussions on increasing the use of local currencies in bilateral trade have been ongoing among local banks.

The EDB Chairman said the mechanism would help reduce demand for US dollars, while contributing to greater exchange rate stability.

Momentum behind the initiative was evident last week when policymakers, bankers, exporters,, and business leaders gathered for a high-level roundtable titled “Rupee to Rupee: Strengthening the India-Sri Lanka Commercial Corridor,” held under the patronage of Indian High Commissioner Santosh Jha and CBSL Governor Dr. Nandalal Weerasinghe (https://www.ft.lk/front-page/Sri-Lanka-and-India-set-sights-towards-Rupee-converted-6-b-trade/44-793343).

Participants included representatives from Sri Lankan banks, exporters, importers, chambers of commerce, members of the India CEO Forum, and policy think tanks.

A key feature highlighted at the event was the growing ability of financial institutions to support trade directly in INR. Indian banks operating in Colombo can now lend in INR to Sri Lankan importers purchasing Indian goods, while Sri Lankan banks can also borrow in INR to finance trade transactions without requiring dollar conversions.

“This is a good opportunity for us to promote important facilitation of trade between India and Sri Lanka,” Wijesinghe said.

The push for local currency settlement comes as economic ties between the two neighbours continue to deepen.

India has now emerged as Sri Lanka’s second-largest export destination, overtaking the UK, with annual exports exceeding $ 1 billion. At the same time, Sri Lanka imports nearly $ 5 billion worth of goods from India annually. A significant component of that trade relationship is linked to manufacturing supply chains, particularly apparel.

Wijesinghe noted that around $ 2.6 billion worth of raw materials used by Sri Lanka’s garment sector are imported from India each year.

The development reflects a growing degree of economic interdependence between the two countries and underscores the importance of reducing transaction costs and payment frictions.

The rupee-trade initiative comes amid renewed efforts to expand bilateral trade and investment ties, highlighted on Tuesday as the two countries marked 25 years of the India-Sri Lanka Free Trade Agreement (ISFTA) and launched the Indo-Lanka Chamber of Commerce and Industry (ILCCI) India Desk, which will be operated by Global Investment and Trade Advisors (GITA), an Indian trade and investment promotion agency (https://www.ft.lk/front-page/India-Desk-launch-signals-push-to-reboot-Sri-Lanka-India-economic-ties/44-793696).

The Desk is expected to provide Sri Lankan businesses with regulatory guidance, market intelligence, and structured engagement opportunities to help them navigate and access the Indian market more effectively.