Seylan Bank appoints Krishan Thilakaratne Deputy Chairman

Seylan Bank PLC has announced the appointment of Krishan Thilakaratne, Non-Executive Director, as the Deputy Chairman of the Board with effect from 17 August 2026.

Thilakaratne was appointed as a Non-Executive Director to the Board in 2018, and the progression to Deputy Chairman, reaffirms his long-standing governance role and leadership capacity.

He currently serves as Director/CEO of LOLC Finance PLC and is a member of the Senior Management Team of LOLC Holdings PLC.

Thilakaratne carries over three decades of experience in banking and finance. He began his career at Seylan Bank in September 1990, at the age of 19, as a Banking Assistant, before joining LOLC Group in 1995. Today, he counts more than 31 years of expertise in management, credit, channel management, marketing, factoring, portfolio management, and Islamic finance.

He holds extensive international exposure, serving on boards in Southeast Asia and Central Asia, including the Philippines, Indonesia, Pakistan, Kyrgyzstan, Kazakhstan, Tajikistan, Uzbekistan, and Egypt. His leadership roles extend to LOLC Moliya, Tajikistan, OJSC Micro Finance Company ‘ABN’, Kyrgyzstan, Finance, Kazakhstan, Prasac Microfinance Institution Ltd, Cambodia, LOLC Egypt, and additionally advising Lombard Micro Finance Company in Tajikistan.

In Sri Lanka, Thilakaratne has contributed significantly to the financial services sector, serving as a Board Member of the Credit Information Bureau of Sri Lanka (CRIB), Commercial Insurance Brokers Ltd. He has also held the position of Chairman of the Finance Houses Association of Sri Lanka (FHASL), the apex body for Non-Bank Financial Institutions.

A Passed Finalist of the Chartered Institute of Management Accountants (CIMA) UK and Associate Member of the Institute of Bankers of Sri Lanka (AIB), Thilakaratne has completed the Strategic Leadership Training Program in Microfinance at Harvard Business School, USA.

Kane first Englishman to win Germany’s player of the year award

Harry Kane has been voted Germany’s footballer of the year for 2026, becoming the first Englishman to win the award.

The Bayern Munich striker scored 61 goals in all competitions last season as his side completed a league and cup double and reached the semi-finals of the Champions League.

Bundesliga players or German players playing abroad are eligible for the award, which is organised by Kicker magazine and voted for by 695 members of the German sports journalists association.

Kane received 272 votes, with Bayern team-mate Michael Olise – runner-up in 2025 behind Florian Wirtz – again second, this time with 203 votes

‘It’s almost impossible to find the right superlatives to describe Harry Kane – sometimes I’m at a loss for words,’ Bayern sporting director Max Eberl said.

‘He’s already been named England’s Footballer of the Year, and now he’s also won it in Germany.’

The England captain is among the favourites to win the 2026 Ballon d’Or, which will be awarded in London in October. If he wins, he will become the second English player to receive the honour while representing a German club, joining Kevin Keegan who won in 1978 and ’79 while playing for Hamburg.

Bayern boss Vincent Kompany was named coach of the year, while their women’s captain Giulia Gwinn won the award for best female player.

Kane and Kompany will be honoured on Friday at Bayern’s Bundesliga opener against VfB Stuttgart at the Allianz Arena.

Bayern began their season with silverware on Saturday as they beat Borussia Dortmund 2-1 in the German Super Cup.

On Wednesday, Kane received the 2026 Golden Shoe award for being the top scorer across Europe’s top leagues last season.

Deals on CT Holdings, Cargills boost CSE turnover to over Rs.16. 8 b

The Colombo stock market yesterday opened the week in red, with deals in CT Holdings and Cargills boosting turnover to over Rs. 16.8 billion, a more than one-year high.

With 62 counters ending in the green against 130 in the red, the ASPI ended down 0.34% or 71.84 points at 21,344.77 and the active S and P SL20 ended down 0.31% or 18.69 points at 6,009.40.

The session’s record turnover was generated by over 67 million shares traded. Foreign investors were net sellers on a net inflow of Rs. 909.9 million.

Negative contributions to the ASPI came from COMB, MELS, BREW, CTC, and RICH.

CT Holdings contributed Rs. 11.58 billion to turnover, with Cargills contributing Rs. 4.2 billion. A 10% stake of CT Holdings and 2.32% of Cargills traded.

Asia Securities investment banking arranged the entire transaction and stockbroking executed all of the selling and half of the buying. CT Holdings ended up Rs. 25.75 to Rs. 550.50 and Cargills closed down Rs. 5.50 at Rs. 680.75

The third highest contribution to turnover came from Sunshine Holdings at Rs. 178.4 million.

First Capital Research said sentiment in the bourse was largely influenced by the escalating tensions between the US and Iran.

Retail investor participation remained moderate. The Food and Staples Retailing sector led the daily turnover with a share of 94%, followed by the Food, Beverage and Tobacco and Capital Goods sectors collectively contributing 3%.

AI may transform media planning, but media planner remains indispensable

In today’s increasingly competitive and fragmented business environment, media planning has become far more than deciding where and when to place advertisements. It is a critical business function that connects marketing investment with business growth by identifying the right audiences, selecting the most relevant channels, managing budgets effectively and balancing immediate performance with long-term brand building. The quality of media planning can directly influence whether a business builds awareness, creates demand, increases penetration, protects customer loyalty or wastes resources by pursuing the wrong objective. This makes the discussion around Artificial Intelligence and the future of media planning especially important.

Artificial Intelligence (AI) is rapidly changing the way media planning is performed. Tasks that once required several days of data collection, calculation and manual analysis can now be completed within minutes or less. AI can process large volumes of audience data to identify patterns, forecast performance, optimise budgets and even recommend an effective combination of media channels.

This poses an important question: Will AI eventually replace the media planner?

The answer is no or at least not in the forcible future.

AI may replace many of the tasks traditionally performed by media planners, but it cannot completely replace the multi-faceted role that media planners play. This is because media planning is not simply solving a mathematical problem. It is a strategic decision-making process that often requires human judgement, contextual understanding, creativity and the ability to connect business problems with consumer behaviour.

So, this leads us to ask the question: What can AI actually replace?

A significant portion of traditional media planning involves repetitive and data-intensive work. These are areas where AI can perform faster and, in many cases, more accurately than humans. For example, AI can analyse audience reach, frequency, duplication and cost efficiency across multiple channels. It can evaluate thousands of possible budget combinations and recommend an allocation that is likely to produce the highest return. It can also forecast media inflation, identify underperforming placements and adjust campaigns based on real-time results.

In programmatic and digital advertising, AI already plays a central role in audience targeting, bidding, placement selection and campaign optimisation. Machine-Learning (ML) models can identify which audiences are more likely to respond, which messages perform better and which platforms are producing stronger outcomes.

AI can therefore replace or significantly reduce the time required for:

nData collection and organisation

nAudience profiling and segmentation

nReach and frequency calculations

nMedia cost comparisons

nBudget allocation and optimisation

nCampaign performance monitoring

nPredictive modelling and forecasting

nStandard reporting and dashboard preparation

These capabilities will make media planning faster, more efficient and increasingly evidence based.

However, efficiency is not the same as strategy.

AI works with data – a media planner works with meanings

AI is excellent at identifying patterns in available data. But it does not automatically understand and explain why those patterns exist or whether they are strategically important.

For example, an AI model may identify that a particular television program provides the lowest cost per rating point. A good media planner may still decide not to prioritise it because the program environment does not match some important attributes such as brand’s personality, creative idea and emotional context in which the message should be received.

Similarly, an algorithm may recommend concentrating the budget on platforms that provide immediate conversions. But a media planner may recognise that the brand also needs long-term salience, cultural relevance and future demand creation.

AI can tell us what is happening. A planner must interpret what and how it means for the brand.

Media strategy begins with the business problem

Before selecting channels, audiences or media weights, someone must define the real problem the brand is trying to solve. That is: Is the objective to increase penetration? Build awareness? Encourage product usage? Protect loyalty? Enter a new market? Attract younger consumers? Change a deeply established perception?

The above questions cannot be answered by media data alone.

The same set of media numbers can lead to very different strategies depending on the business context. A category leader seeking to defend its market share requires a different approach from a new entrant searching for better visibility. A low-involvement FMCG brand cannot be planned in the same way as a bank, automobile or telecommunications brand.

AI can optimise against an objective, but the media planner must decide whether it is the right objective.

Optimising the wrong objective simply allows a brand to make the wrong decision more efficiently.

Human judgement is essential

Media decisions are often made with incomplete, imperfect or conflicting information. Research data may be outdated. Digital platforms may use different metrics. Competitive activity may change unexpectedly. Consumer behaviour may shift because of economic, social or cultural developments.

In such situations, the planner must use experience and judgement.

A strong planner knows when to trust the data, when to challenge it and when to search for additional evidence. The planner also understands that not everything valuable can be measured immediately.

Brand associations, cultural impact, word of mouth, program context, consumer trust and emotional relevance are difficult to capture through a single metric. Yet these factors can strongly influence the long-term success of a campaign.

AI can calculate probabilities. Human planners must take responsibility for decisions.

Creativity cannot be reduced to an optimisation solution

Media planning is also a creative discipline.

The most powerful media ideas do not always emerge from selecting the cheapest channel or the most efficient placement. They come from finding a meaningful connection between the brand, the consumer, the message and the moment.

A media planner may identify a television program that naturally reflects the brand’s purpose. The planner may create a partnership that turns a normal sponsorship into a cultural conversation. The planner may recognise an overlooked occasion, location or behaviour that allows the brand to enter consumers’ lives in a more relevant way. AI can generate options and identify patterns. But original media thinking requires curiosity, imagination and an understanding of human emotions. A machine can recommend where an advertisement should appear. A planner decides how the brand should participate.

Media planner must understand culture

Media consumption does not happen in isolation. It is shaped by language, family structures, social values, economic realities, local traditions and cultural tensions.

A platform that is growing globally may not have the same role in every market. A message that succeeds among urban youth may be inappropriate for rural families. A program with high ratings may have very different meanings across social groups.

These cultural nuances are often difficult to capture in structured datasets.

Media planners bring local knowledge and sensitivity to the process. They understand not only where consumers can be reached, but also how they may interpret the message.

This becomes even more important in diverse markets where audiences consume content across different languages, regions and social contexts.

Future is not about a contest between AI and the media planner

The real future of media planning is not a competition between humans and machines. It is a partnership between the two.

AI should take over repetitive calculations, large-scale data processing, scenario modelling and continuous optimisation. This will allow media planners to spend more time on areas where human contribution creates the greatest value:

nUnderstanding the business challenge

nIdentifying meaningful consumer insights

nDeveloping differentiated media strategies

nEvaluating cultural and brand context

nCreating media ideas and partnerships

nChallenging assumptions and interpreting results

nAligning clients, creative teams, media owners and technology partners

The role of the planner will therefore evolve. Tomorrow’s media planner may spend less time preparing spreadsheets and more time framing problems, questioning models, interpreting evidence and designing strategic solutions.

AI will not replace media planners – but planners using AI may replace those who do not

Instead of resistance, media planners should embrace AI by learning to use it effectively. The strongest planners will understand both the possibilities and limitations of AI. They will know how to provide the right inputs, question the outputs and combine machine intelligence with human insight.

A planner who simply repeats what an algorithm recommends will add limited value. But a planner who can use AI to explore more possibilities, improve decision-making and create stronger strategies will become even more valuable.

AI can replace tasks-but not human judgement. It can automate calculations, repetitive analysis, and manual processes, but it cannot replace curiosity, empathy, cultural understanding, strategic judgement, creativity, or accountability.AI can help create a media plan, but still a media planner can develop a winning media strategy.

((The author is an experienced media planning professional currently serving at MTM Group, where he has played a key strategic role in shaping the direction of one of Sri Lanka’s largest media investment management groups.He holds a BSc (Hons) from the University of Peradeniya and a Master of Business Analytics from the University of Moratuwa. Dr. Indra Mahakalanda is a Senior Lecturer at the Department of Decision Sciences, University of Moratuwa. He holds a PhD from University of Canterbury, an MSc and BSc (Hons) in Engineering from the University of Moratuwa. His research interests are business analytics and electricity markets)

Sri Lanka eyes wellness tourism to diversify markets, attract high-value travellers

From left: Adithya Ayurveda CEO Ranuka Karunarathna, Hettigoda Group Chairman and The Hotels Association of Sri Lanka (THASL) President Asoka Hettigoda, Tourism Deputy Minister Prof. Ruwan Ranasinghe, University of Colombo Faculty of Indigenous Medicine Professor in Ayurveda Prof. S. M. K. Harapathdeniya, Thema Collection and Connaissance Ceylon Founder, Chairman and Managing Director Chandra Wickramasinghe, and MDF Sector Coordinator – Tourism Nimesha Palliyaguru (Moderator)

Australia’s MDF and Thema Collection convene industry to explore way forward for wellness tourism

Aims to leverage Ayurvedic heritage, culture and hospitality to become a globally recognised wellness destination

MDF sees wellness tourism as a way to attract higher-spending visitors, tap markets such as Japan, Australia and MidEast; reduce seasonal dependence

Panel discussion highlights stronger policy coordination, sustainability practices and private-sector investment are needed to turn wellness potential into long-term, sustainable tourism growth

Sri Lanka is seeking to position wellness tourism as a strategic pillar of its tourism offering, with the Government and industry turning to the country’s Ayurvedic heritage, natural assets and sustainability credentials to attract higher-value visitors from emerging markets.

The push was highlighted at the ‘Positioning Sri Lanka as a Sustainable Wellness Destination’ forum hosted by Australia’s Market Development Facility (MDF) in partnership with hotel chain Thema Collection last week.

Tourism Deputy Minister Prof. Ruwan Ranasinghe said Sri Lanka possessed the core ingredients to become a globally recognised wellness destination, but stronger policy coordination and collaboration between the Government and industry were needed to convert that potential into investment, market diversification and sustainable growth.

‘Sri Lanka has all the elements to become a globally recognised wellness destination, from our Ayurvedic heritage to our culture and hospitality,’ he said.

The forum brought together Government representatives, tourism industry leaders and academia, while MDF presented findings from its assessment of Japan’s outbound wellness tourism market, identifying traveller motivations and potential opportunities for Sri Lankan businesses.

The initiative comes as global tourism demand increasingly shifts towards experiences combining wellbeing, nature, culture and sustainability. Sri Lanka’s Ayurvedic traditions, which date back more than 2,000 years, provide a potential point of differentiation as destinations compete for wellness-conscious travellers.

Sri Lanka was ranked first in the 2026 BookRetreats Wellness Destination Index, further highlighting its potential in the segment.

MDF has identified wellness tourism as a potential avenue for Sri Lanka to diversify beyond traditional source markets, attract higher-spending visitors and reduce the sector’s reliance on seasonal demand.

The development agency has been working with tourism partners to target wellness travellers from Japan, Australia and the Middle East, while supporting businesses to strengthen sustainability and competitiveness.

Thema Collection, which operates 17 properties including two Ayurvedic properties, has also placed sustainability at the centre of its strategy.

Thema Collection Chairman Chandra Wickramasinghe said wellness and sustainability were inseparable, arguing that authentic wellness experiences depended on healthy ecosystems, thriving communities and respect for local heritage.

MDF has supported Thema Collection in assessing its carbon footprint, resulting in the hotel group becoming one of the first in Sri Lanka to complete independently verified, portfolio-wide carbon calculations.

Australian Deputy High Commissioner Ruth Baird said wellness tourism could help Sri Lanka generate economic opportunities while protecting the natural and cultural assets underpinning its tourism proposition.

‘Global travellers are increasingly choosing destinations that combine authenticity, wellbeing and sustainability,’ she said.

The forum also featured a panel discussion on ‘Unlocking wellness tourism opportunities in Sri Lanka’ comprising the policymakers, private sector leaders and academic experts featuring; University of Colombo Faculty of Indigenous Medicine Professor in Ayurveda Prof. S. M. K. Harapathdeniya, Tourism Deputy Minister Prof. Ruwan Ranasinghe, Thema Collection and Connaissance Ceylon Founder, Chairman and Managing Director Chandra Wickramasinghe, Adithya Ayurveda CEO Ranuka Karunarathna and Hettigoda Group Chairman and The Hotels Association of Sri Lanka (THASL) President Asoka Hettigoda. The session was moderated by MDF Sector Coordinator – Tourism Nimesha Palliyaguru.

They highlighted the need for closer collaboration between Government, tourism businesses and development partners to develop wellness products capable of competing in international markets.

The panelists opined for Sri Lanka, the opportunity extends beyond positioning wellness as another tourism niche. A successful strategy could help the country move towards higher-value, experience-led tourism, broaden its source-market base and build a more resilient year-round tourism economy.

Fintrex Finance more than doubles 1Q PAT to Rs. 210 m

Fintrex Finance PLC delivered a robust start to the 2026/27 financial year, more than doubling its profit after tax (PAT) to Rs. 209.93 million for the three months ended 30 June 2026. This represented a year-on-year increase of 104% from Rs. 103 million reported in the corresponding quarter of the previous year. Profit before tax (PBT) increased by 102% to Rs. 340.59 million.

The performance was supported by strong growth across the Company’s principal income streams. Gross income rose by 57% to Rs. 2.05 billion, while interest income increased by 50% to Rs. 1.70 billion. Net interest income advanced by 55% to Rs. 961.95 million, reflecting the continued expansion of the lending portfolio and improved earnings momentum.

Net fee and commission income more than doubled to Rs. 334.77 million, contributing to a 65% increase in total operating income, which reached Rs. 1.31 billion during the quarter.

The significant improvement in earnings was achieved despite a 43% increase in impairment charges on loans and receivables to Rs. 278.73 million. After absorbing these higher provisions, net operating income rose by 72% to Rs. 1.03 billion, while operating profit before taxes on financial services increased by 89% to Rs. 463.48 million.

Fintrex also maintained strong balance-sheet growth during the quarter. Total assets increased by 9% to Rs. 34.45 billion as at 30 June 2026, compared with Rs. 31.50 billion as at 31 March 2026. Combined loans and lease receivables expanded by 7% during the three-month period to Rs. 30.37 billion.

Total equity grew by 5% to Rs. 4.59 billion, while net assets per share improved to Rs. 16.01 from Rs. 15.28 at the beginning of the financial year.

Commenting on the results, Chairman Ajit Gunewardene said: ‘These results mark an encouraging start to the financial year and reflect the progress Fintrex continues to make in building a stronger and more resilient financial institution. The Board remains committed to ensuring that the Company’s growth is anchored in sound governance, prudent risk management and a strong foundation of capital. We are confident that Fintrex is well positioned to build on this momentum and create sustainable long-term value for its customers, depositors, shareholders and the wider economy.’

CEO Jayathilake Bandara said: ‘Our first-quarter performance reflects the disciplined execution of our growth strategy and our ability to translate business momentum into stronger earnings. More than doubling of profit after tax, supported by robust growth in net interest income and fee-based income, demonstrates the resilience of our business model. Importantly, this performance was delivered after absorbing higher impairment provisions as the portfolio expanded.’

‘We will continue to pursue growth with discipline, maintaining a strong focus on asset quality, funding resilience, operational efficiency and technology-enabled customer service. Our priority is to deliver sustainable and responsible growth while creating lasting value for all our stakeholders,’ he added.

Building on this strong first-quarter performance, Fintrex will remain focused on prudent portfolio expansion, strengthened risk management, greater productivity and customer-centric innovation as it advances its growth journey during FY2026/27.

Board of Directors

Ajit Gunewardene (Chairman); Ronnie Peiris (Retired w.e.f.29.06.2026); Shantanu Nagpal; Ahamed Sabry Ibrahim; Shrihan B. Perera; Nilam Jayasinghe; Jayashantha De Fonseka; Indrajit Wickramasinghe; Darshan Perera; Nirodha S. Kalansooriya; and Udesh Gunawardena.

NSB retains position among Sri Lanka’s top five most valuable brands

Brand Finance Lanka Chairman Ruchi Gunewardene (left) presents the award to NSB Chairman Dr. Harsha Cabral, PC. Acting General Manager/CEO Rohana Bandara Weerakoon and Assistant General Manager – Marketing Dulakshi Perera are also present

National Savings Bank (NSB), has once again been recognised as one of the five most valuable brands in Sri Lanka, reaffirming its strong brand equity, enduring customer trust and growing national significance.

The prestigious recognition has been assessed and confirmed by Brand Finance, the world’s leading brand valuation consultancy, through its latest Sri Lanka 100 brand valuation assessment for 2026.

Marking the achievement,

The latest recognition comes at an important juncture for Sri Lanka’s corporate sector. According to Brand Finance, the combined value of Sri Lanka’s top 100 brands has increased by 17% to Rs. 650 billion in 2026, surpassing the country’s previous pre-crisis peak of Rs. 630 billion recorded in 2019. The banking sector continues to be a major contributor to Sri Lanka’s brand landscape, accounting for approximately 42% of the total value of the country’s top 100 brands.

Against this backdrop, NSB’s continued presence among the country’s five most valuable brands represents a significant achievement for a national institution whose core mandate has always been centered on promoting savings, financial security and inclusive economic development.

The recognition also reflects the Bank’s continuing journey of strengthening its brand while adapting to the changing expectations of a digitally connected generation of customers. NSB has been progressively investing in digital banking, customer experience, financial inclusion and modernised communication, while preserving the values of trust, security and accessibility that have defined the Bank throughout its history.

The Bank has also continued to strengthen its digital capabilities and customer engagement initiatives as part of its broader transformation agenda, positioning NSB as a modern, digitally enabled financial institution while retaining its longstanding commitment to savings and national development.

Dr. Cabral noted that the achievement represents more than a ranking, as it reflects the confidence and trust built by generations of Sri Lankans on the NSB brand.

Weerakoon, emphasised that maintaining a position among Sri Lanka’s five most valuable brands is a collective achievement of NSB’s employees, customers and stakeholders, and provides further impetus to the Bank’s efforts to strengthen its competitiveness, innovation and customer-centricity.

For NSB, the recognition is not merely an accolade but a reflection of a longstanding relationship with the people of Sri Lanka. Since its establishment, the Bank has played a pivotal role in encouraging a culture of savings and supporting the financial wellbeing of individuals, families and communities across the country.

As Sri Lanka’s economy continues its recovery and transformation, Brand Finance has highlighted the importance of continued digital transformation, innovation and the adoption of emerging technologies in building stronger brands for the future. NSB’s continued investment in digital banking and customer experience is therefore aligned with the evolving expectations of the financial services sector.

The Bank views this recognition as both an honour and a responsibility, to continue strengthening the trust placed in the NSB brand, create greater value for the customers and stakeholders, and contribute meaningfully to Sri Lanka’s economic and social progress.

EU-India FTA raises competitive stakes for Sri Lanka exports

Sri Lanka is facing a fresh export competitiveness challenge in the European Union (EU) as the recently concluded EU-India Free Trade Agreement (FTA) is expected to give Indian products significant tariff advantages across several labour-intensive sectors, prompting calls for urgent action to protect the country’s market access and strengthen its competitive position.

The issue was raised at a meeting between the Sri Lanka Export Development Board (EDB) and European Commission consultants Paul Baker and Talal Rafi, who are assessing the potential implications of the landmark EU-India agreement for Sri Lanka.

The Joint Apparel Association Forum (JAAF) also joined the discussion, highlighting the challenges that Sri Lanka’s apparel industry could face once the FTA becomes operational.

The negotiations were concluded on 27 January, with the agreement now awaiting legal review, signature, and ratification before entering into force.

The potential impact is particularly significant for Sri Lanka given the EU accounts for around 25% of the country’s merchandise exports, making it the second-largest export market after the US.

During the first half of 2026, Sri Lanka’s exports to the EU increased by 2.49% year-on-year (YoY) to $ 1.49 billion, indicating a marginal improvement in overall export performance to the region.

The agreement is expected to substantially improve India’s competitiveness in the EU, with apparel, marine products, leather and footwear, chemicals, plastics and rubber, sports goods, toys, and gems and jewellery among sectors expected to benefit from significant tariff liberalisation, including duty-free access for many products from the Agreement’s entry into force.

EDB Chairman Mangala Wijesinghe said Sri Lanka must move quickly to safeguard its preferential access under the EU’s Generalised Scheme of Preferences Plus (GSP+) scheme as Indian competitors gain improved tariff access.

He stressed the need for Sri Lanka to continue meeting the requirements of the EU’s revised GSP framework while positioning the country as a reliable, sustainable, and high-quality supplier.

‘We intend to position Sri Lanka as a reliable, sustainable, and high-quality supplier to the global market, while encouraging local enterprises to move towards higher-value, differentiated products and strengthen compliance with EU standards,’ Wijesinghe said.

The threat is particularly acute for the apparel industry, which is already competing in a highly price-sensitive global market.

JAAF Secretary General Yohan Lawrence highlighted concerns over rules of origin and regional cumulation, particularly regarding fabrics and other inputs sourced from India and subsequently incorporated into garments manufactured in Sri Lanka for export to the EU under GSP+.

Industry representatives warned that if Sri Lankan manufacturers cannot secure appropriate cumulation arrangements involving Indian-origin inputs, the sector could face an additional competitiveness disadvantage just as Indian apparel exports receive preferential tariff treatment in Europe.

The EDB said Sri Lanka would engage with the EU on appropriate cumulation arrangements with India to protect export competitiveness and facilitate deeper regional supply chain integration.

Baker said economic modelling indicated the EU-India FTA could significantly increase Indian exports to the European market, while also attracting greater foreign direct investment into India.

However, he noted that tariff advantages would not eliminate the importance of sustainability, environmental performance, traceability, and regulatory compliance in the EU market.

This, he suggested, could provide Sri Lankan exporters with an opportunity to compete beyond price by accelerating value addition, differentiation, and compliance with increasingly stringent European standards.

The meeting comes as Sri Lanka’s exports to several major EU markets, including Germany, Italy, the Netherlands, France, and Belgium, recorded growth in 2025.

The observations from the EDB and apparel industry will be incorporated into the consultants’ final study for submission to the European Commission, potentially providing Sri Lanka with an important assessment of the risks and opportunities arising from the EU-India trade deal.

Vietnam Airlines commences direct flights between Sri Lanka and Vietnam

Vietnam Airlines has commenced direct air services between Sri Lanka and Vietnam, with the country’s national carrier operating its inaugural flight to Bandaranaike International Airport (BIA) in Katunayake on August 16.

The inaugural flight, VN-671, arrived at Bandaranaike International Airport at 11:02 p.m. from Ho Chi Minh City, carrying 164 passengers. The Airbus A320 aircraft was greeted with a traditional water salute upon its arrival at the airport.

A special ceremony was held at BIA to mark the commencement of the new service. Vietnamese Ambassador to Sri Lanka Trinh Thi Tam attended the event as the chief guest.

The launch of the direct flights is expected to strengthen air connectivity between Sri Lanka and Vietnam while facilitating increased travel between the two countries for tourism, business and other purposes.

Following the arrival of the inaugural flight, 172 passengers departed from Katunayake on the return service to Vietnam.

The new direct service is scheduled to operate three times a week, on Sundays, Wednesdays and Fridays. Each flight is expected to take approximately four hours and 30 minutes, providing a direct link between Sri Lanka and Vietnam.

From compliance to brand equity: Shift Sri Lankan businesses need to make

As Sri Lankan organisations prepare for enhanced sustainability reporting under SLFRS S1 and S2, businesses are being encouraged to look beyond compliance and recognise Environmental, Social and Governance (ESG) as a strategic driver of brand equity, stakeholder trust and long-term competitive advantage.

While regulatory reporting remains an important requirement, FireCircle by G Founder and Strategic Communications Consultant Gayani Punchihewa, believes many organisations risk limiting the value of their sustainability efforts by viewing ESG primarily as a disclosure exercise rather than a business strategy.

‘Many organisations invest considerable resources into sustainability initiatives, yet the conversation often ends with the publication of a report,’ she said. ‘Compliance fulfils regulatory obligations, but communication is what transforms ESG into trust, reputation and long-term brand value. Organisations that communicate their ESG journey authentically are far better positioned to differentiate themselves in an increasingly competitive marketplace.’

She noted that today’s investors, customers, employees and business partners are looking beyond financial performance to understand how organisations create sustainable value and respond to environmental and social challenges.

‘ESG is no longer simply about what organisations do. It is equally about how they communicate those actions with credibility, transparency and consistency. Companies that successfully integrate ESG into their broader brand strategy are likely to build stronger stakeholder confidence, enhance employer branding and create lasting competitive advantage,’ Punchihewa added.

These themes formed the basis of the second edition of FireCircle by G’s ‘From Compliance to Brand Equity’ workshop, which brought together professionals from finance, sustainability, marketing, communications and corporate leadership to explore practical approaches to communicating ESG beyond compliance.

Feedback from participants reflected the relevance of this perspective, with many noting that the workshop challenged the traditional view of ESG as a reporting obligation and instead demonstrated how sustainability initiatives can be leveraged to strengthen reputation, build stakeholder trust and create long-term business value.

As sustainability reporting continues to evolve in Sri Lanka, Punchihewa believes organisations that combine robust ESG performance with strategic communication will be better positioned to build stronger brands in an increasingly purpose-driven business environment.