Category: Daily Financial Times

Nations Trust Bank PLC’s (NTB) Rs. 15 billion Basel III-compliant Tier 2 debenture issue has been oversubscribed, prompting the bank to close the offer ahead of schedule on 19 June.

The bank said it had received applications for more than 150 million debentures under its initial public offering of listed, rated, unsecured, subordinated, and redeemable debentures.

The issue comprised up to 100 million debentures, with an option to issue a further 50 million in the event of an oversubscription at Rs. 100 each.

NTB said applications received exceeded 150 million debentures, resulting in the full subscription of the issue, including the additional tranche available under the oversubscription option.

Accordingly, the bank announced that the debenture issue closed at 4:30 p.m. on 19 June, in line with the terms set out in the prospectus. Applications received before the closing time will be accepted.

The issue offered three tenors of five years (2026-2031), seven years (2026-2033), and 10 years (2026-2036), each carrying a non-viability conversion feature.

The bank said the basis of allotment will be notified to the Colombo Stock Exchange in due course.

The funds raised through the issue are expected to strengthen NTB’s Tier 2 capital base and support future business growth while maintaining regulatory capital requirements.

Treasury and Inland Revenue Department (IRD) officials have defended the Government’s proposal to lower the Value Added Tax (VAT) registration threshold, arguing that Sri Lanka’s longstanding failure to broaden the tax base has contributed to fiscal imbalances and entrenched economic distortions.

Appearing before the Committee on Public Finance (CoPF) chaired by MP Dr. Harsha de Silva last week, officials said the proposed reduction of the annual VAT registration threshold from Rs. 60 million to Rs. 36 million is expected to bring around 10,000 additional businesses into the tax net.

Officials noted that the current VAT base comprises approximately 35,000 registered entities and that the amendment is expected to increase that figure to around 45,000.

Defending the move, Treasury officials pointed to previous policy decisions that sharply increased VAT thresholds and reduced the number of registered taxpayers.

According to data presented at the Committee, there were 28,914 VAT files at the end of 2018 when the registration threshold stood at Rs. 12 million annually.

Officials argued that the subsequent increase in thresholds, which eventually reached Rs. 300 million following tax concessions introduced in late 2019, significantly narrowed the tax base and created distortions within the economy.

‘The problem today is the inconsistency of tax policy over many years,’ officials told the Committee, arguing that repeated changes to tax structures have complicated efforts to restore fiscal sustainability.

The discussion took place against the backdrop of improving Government finances, with Committee members noting that Sri Lanka’s primary surplus had increased from the International Monetary Fund (IMF) program target of around 2.3% of GDP to above 5% in 2025.

However, Treasury officials maintained that stronger revenue collection remained essential to reducing reliance on a small group of taxpayers and creating space for future tax reductions.

Officials argued that a broader tax base would ultimately allow Sri Lanka to move towards lower tax rates while maintaining revenue performance, a position echoed by the Government’s broader tax reform agenda.

Several Committee members, however, questioned whether businesses would be able to comply with the new requirements within the proposed timeframe.

Dr. de Silva raised concerns over the cost of compliance, particularly for smaller businesses such as retail outlets, salons, and laundries that would be brought into the VAT net.

Under the proposed framework, newly registered VAT entities will be required to install Point of Sale (POS) systems within three months of the legislation taking effect. Non-compliance could result in penalties.

Committee members noted that POS terminals can cost around Rs. 200,000, while businesses may also face additional accounting and administrative expenses associated with VAT reporting.

Dr. de Silva argued that affected businesses may require a longer transition period, suggesting that 18 months may be necessary to prepare adequately for the new requirements.

Treasury and IRD officials responded that businesses would continue to have multiple options for maintaining records, including POS systems, Enterprise Resource Planning (ERP) systems, and manual record-keeping mechanisms supported through the Revenue Administration Management Information System (RAMIS).

Officials also pointed out that businesses operating at similar turnover levels had previously complied with VAT registration requirements when thresholds were significantly lower.

The Committee also examined concerns regarding the treatment of mixed businesses selling both VAT-liable and exempt goods, as well as the impact of VAT on price-controlled and price-marked products.

Officials explained that businesses would be entitled to claim input tax credits, including one-time deemed input tax credits on existing inventories based on self-assessment declarations.

During the discussion, members repeatedly highlighted the need to address tax loopholes and unequal treatment across sectors.

Several MPs questioned why segments such as online gambling and betting platforms were perceived to remain outside the effective tax net while compliance requirements were being expanded for traditional businesses.

Officials responded that broader reforms were underway, including provisions covering non-resident digital service providers and online marketplaces. Under the proposed digital VAT framework, overseas service providers whose services are consumed in Sri Lanka would be required to register, file returns electronically, and account for VAT liabilities locally.

The Committee also reviewed provisions relating to VAT on financial services, the abolition of the Simplified VAT (SVAT) scheme, penalties for non-compliance, and measures aimed at curbing tax avoidance.

While concerns were raised regarding implementation challenges and compliance costs, Treasury and IRD officials maintained that broadening the tax base remains essential to reducing distortions, improving equity within the tax system, and strengthening long-term fiscal sustainability.

The VAT Amendment Bill was eventually allowed to proceed following extensive deliberations, although some members requested further clarification on several provisions and implementation mechanisms.

In light of the Government’s recent announcement to strategically restructure SriLankan Airlines, MTI Consulting has revisited a pivotal case study from the airline’s history – a time when the national carrier overcame severe turbulence and charted a path to profitability.

It said at the turn of the millennium, SriLankan Airlines was facing unprecedented challenges. The airline recorded losses of Rs. 750 million in 2000 and Rs. 6.5 billion in 2001, while half its fleet was destroyed in the terrorist attack at Katunayake Airport in 2001. Globally, the airline industry was reeling from the aftermath of the 9/11 attacks, and internally, SriLankan was burdened with unprofitable routes, an unsuitable aircraft mix, low yields, weak product development, and poor brand management.

In this environment, MTI Consulting, together with then CEO Peter Hill, initiated a ground-zero strategic planning exercise. The short-term goal was to achieve profitability of $ 48 million by 2005, while the long-term vision was to position SriLankan Airlines as Asia’s most preferred airline. Insights were gathered from 18 countries across Europe, Asia, and the Middle East, using ConsuLearning workshops, cross-functional teams, cross-industry learnings, and facilitated self-realisation.

The process narrowed the business focus to seven core strategies: building corporate brand equity through a world-class product, profitable selling, network and route rationalisation, upgrading the Business Class product, investing in IT for reservations efficiency, improving service quality and consistency, and cost optimisation. These strategies were broken down into measurable business health indicators linked to an automated performance management system, with 10 project champions appointed to drive execution. The exercise culminated in the launch of a new mission, vision, and values, with 4,200 employees participating across 18 countries – one of the largest corporate events of its kind in Sri Lanka.

The results were significant. Revenue per employee grew to Rs. 9 million in 2003, nearly three times the 1998/99 levels, while staff attitudes and service standards underwent a cultural transformation. Independent recognition followed, with SriLankan Airlines winning the Centre for Asia Pacific Aviation Award for Airline Turnaround of the Year in 2004, Skytrax Best Airline in Central Asia for four consecutive years (2001-2004), Skytrax World’s Friendliest Cabin Crew in 2002, and TTG Asia Best Airline in South Asia in 2002.

The relevance of this case study is particularly strong today. Between 2006 and 2015, SriLankan Airlines became the country’s third largest loss-making State-owned enterprise (SOE), incurring cumulative losses of Rs. 128 billion – greater than the Government’s recurrent health expenditure in 2014.

MTI Consulting CEO Hilmy Cader said: ‘This case study demonstrates that even with largely the same staff and resources, a SOE can achieve profitability if it follows a prudent strategic plan and if there is commitment at all levels of the organisation. It also serves as a stark reminder of the dangers of abandoning the strategic planning process and poor management, which can turn a profitable institution into one of the biggest loss-makers and a heavy burden to the treasury.’

An International Monetary Fund (IMF) staff team will visit Sri Lanka from 24 to 30 June to review recent economic developments and assess progress under the country’s economic reform program.

IMF Mission Chief for Sri Lanka Evan Papageorgiou said the delegation will hold discussions with authorities and a broad range of stakeholders during the visit as part of its ongoing engagement with the country.

‘We will engage with the authorities and a broad range of stakeholders to take stock of recent economic developments and discuss Sri Lanka’s economic reform program performance,’ Papageorgiou said, adding that the Fund looks forward to ‘constructive and productive discussions.’

Singer Sri Lanka PLC has marked a significant milestone in its partnership with global technology brand HONOR with the opening of the first HONOR Experience Store in Sri Lanka, located at the One Galle Face (OGF) Mall.

The launch reflects both brands’ long-term commitment to the Sri Lankan market and highlights HONOR’s strong expansion in the country.

Since commencing operations in Sri Lanka in April 2023 through its exclusive partnership with Singer Sri Lanka, HONOR has witnessed exceptional growth, rapidly building consumer trust and brand affinity. In just three years, the brand has achieved a meteoric rise to become the number one smartphone brand in Sri Lanka, a testament to its innovation, quality, and customer-centric approach.

To celebrate this success and signal its future ambitions, the HONOR Experience Store was officially opened at Level 03 of One Galle Face Mall. The launch event was attended by key management from Singer Sri Lanka and HONOR, along with a large gathering of consumers.

The newly opened store has been designed to deliver an immersive and interactive retail experience, offering visitors a comprehensive journey into HONOR’s ecosystem. From flagship smartphones and AI-powered innovations to smart accessories and connected lifestyle products, the space enables visitors to explore and engage with cutting-edge technology in a global-standard retail environment.

Singer Group Managing Director Mahesh Wijewardene said: ‘The launch of the first HONOR Experience Store at One Galle Face Mall is a proud milestone for us and reflects our long-term vision for the brand in Sri Lanka. In a short span of time, HONOR has earned the trust of Sri Lankan consumers and established itself as a market leader and trend setter. This store is a testament to our commitment to delivering world-class retail experiences while making the latest innovations more accessible to our customers.’

HONOR Sri Lanka Country Manager Zeng Lexing said: ‘Sri Lanka has become an important market for HONOR, and our strong partnership with Singer has played a pivotal role in our rapid growth. Achieving the number one position is a significant accomplishment, and the opening of this flagship experience store reflects our confidence in the market and our commitment to long-term investment. We look forward to bringing even more innovative products and technologies to Sri Lankan consumers.’

The HONOR Flagship Store is powered by Singer Sri Lanka PLC, HONOR’s trusted partner in the country, through its flagship retail concept. With its premium design and experiential layout, the store sets a new benchmark for smartphone retail in Sri Lanka.

PayMedia Ltd., one of Sri Lanka’s foremost financial technology companies, marks its 12th anniversary this year, a milestone that reflects over a decade of relentless innovation, trusted partnerships, and leadership in the nation’s digital payments journey. Founded in 2014 by visionary entrepreneur Kanishka Weeramunda, PayMedia set out with a clear ambition: to deliver robust software solutions to banks and financial institutions, and to make digital technology something people could genuinely trust and enjoy. Twelve years on, that vision has grown into a comprehensive suite of products that simplify the financial lives of millions across Sri Lanka and the wider region.

From its head office in Colombo, PayMedia has built a reputation for engineering solutions that sit at the heart of modern banking, including Digital/electronic wallets, smart banking platforms, micro-finance mobile applications, and fully digitised customer onboarding and also AI powered digital solutions. These technologies have empowered financial institutions to operate around the clock, reduce friction, and bring secure, convenient services to customers who need them most. The past few years have been especially defining. PayMedia earned the certifications, underscoring its unwavering commitment to information security and the protection of client and stakeholder data. ‘Reaching twelve years is not just about how far we’ve come, but about the trust our partners and customers have placed in us,’ said PayMedia Founder Kanishka Weeramunda. ‘Every solution we build is designed to make financial services more accessible, secure, and seamless. As we look ahead, our mission remains the same – to keep disrupting the way payments work, in Sri Lanka and across the world,’ he further added. As it celebrates this anniversary, PayMedia reaffirms its dedication to driving financial inclusion through technology, nurturing local talent, and contributing to Sri Lanka’s emergence as a competitive hub for fintech innovation. With a culture built on thinking differently every single day, the company is well positioned to deliver the next generation of digital financial experiences.

The National Enterprise Development Authority (NEDA), under the Ministry of Industry and Entrepreneurship Development, in collaboration with the University of Peradeniya, held a national conference aimed at strengthening Sri Lanka’s Micro, Small and Medium Enterprises (MSMEs) sector.

The fifth edition of the Kickerz Cup concluded successfully after two exciting days of youth football at Police Park in Colombo, bringing together 64 teams from Sri Lanka and the Maldives. Organised by Colombo Kickerz Football Academy, the tournament once again highlighted the growing standard of grassroots football in the region.

Competition was held across the Under-10, Under-12, Under-14, Under-16, and Girls’ categories, providing hundreds of young footballers with a valuable platform to display their skills and sportsmanship.

In the Under-10 division, Kickerz Red completed an unbeaten run to secure the Cup Championship, while Colombo International School, Traveller FA, and Kickerz Green won the Plate, Shield, and Bowl titles respectively. Dhuvaafaru Sports Club of the Maldives dominated the Under-12 category to lift the Cup, while Kickerz Blue emerged as champions in the Under-14 division after a series of impressive performances.

The Girls’ competition was won by Elizabeth Moir School, with The Football Institute finishing as runners-up. In the Under-16 category, Traveller FA, Kaleel FA, and Colombo International School claimed the Plate, Shield, and Bowl titles respectively.

Kickerz Cup 2026 celebrated youth development, teamwork, and community spirit, further strengthening its reputation as one of Sri Lanka’s premier youth football tournaments. (SJ)

HNB PLC signed a Memorandum of Understanding with the Institution of Engineers Sri Lanka (IESL) on 20 May 2026 at HNB Towers, establishing a formal partnership to extend a suite of exclusive financial benefits to IESL’s membership base of over 25,000 engineering professionals across the country.

Under the arrangement, IESL members will have access to customised, pre-approved premium credit cards and pre-approved personal loans, along with special concessions under regular personal financial service facilities. Members who meet the qualifying criteria will also be eligible for HNB Priority Circle, the bank’s premium banking proposition which offers preferential terms. The package has been structured to reflect the profile of engineering professionals, many of whom operate as independent practitioners or consultants, and whose financial service requirements often extend beyond what a standard retail offering addresses.

HNB Chief Operating Officer Sanjay Wijemanne said: ‘Engineers are among the most professionally organised communities in Sri Lanka, yet their banking needs as a segment have rarely been addressed with the specificity they warrant. This partnership with IESL allows us to change that in a meaningful way, offering members financial products that are calibrated to their professional standing and career profile. We see this as a relationship built for the long term, and we are committed to delivering real value to IESL’s membership through it.’

The Institution of Engineers Sri Lanka is the country’s apex professional body for engineers, tracing its origins to the Engineering Association of Ceylon founded in 1906. Incorporated by an Act of Parliament in 1968, IESL today represents professionals across more than twenty engineering disciplines, with eight local chapters spanning all provinces and seven overseas chapters across the United Kingdom, Australia, New Zealand, and the Middle East. The institution is the sole body in Sri Lanka authorised to confer the Chartered Engineer designation, a credential widely recognised across both public and private sectors.

IESL President Eng. Kosala Kamburadeniya said: ‘Access to quality financial services is a practical concern for many of our members, particularly those who are early in their careers or managing independent practices. This partnership with HNB reflects our commitment through the Member Benefits Committee to create tangible value for IESL membership. We are confident that this arrangement will be of genuine benefit to engineers across the country.’

The partnership with IESL is part of HNB’s continued focus on segment-led banking, extending institutional relationships that offer members of professional associations structured, preferential access to the bank’s financial products and services. HNB currently serves customers across a broad network spanning retail, priority, and corporate banking, and continues to deepen its presence across key professional and industry communities in Sri Lanka.

Sri Lanka’s largest printing, packaging and graphic communications exhibition commenced yesterday at BMICH.

Organised by the Sri Lanka Association of Printers (SLAP), ‘Sri Lanka Print Expo 2026’ brings together industry stakeholders, technology providers, manufacturers and policymakers at the Sri Lanka Print Expo 2026, as the sector seeks to accelerate technological adoption, sustainability and industry-wide competitiveness while enhancing opportunities for micro, small and medium enterprises (MSMEs).

The exhibition, regarded as the country’s largest printing, packaging, labelling, signage and graphic communications trade fair, will be held today and tomorrow.

The opening ceremony was attended by Industry and Entrepreneurship Development Ministry Secretary Thilaka Jayasundara as Chief Guest.

International participation will include representatives from the All India Federation of Master Printers (AIFMP) and other global printing organisations.

Konica Minolta Business Solutions Asia is the Principal Sponsor of the exhibition, while KWO Printing Needs Ltd. and MK Masterworks are Platinum Sponsors. Gold Sponsors are JDC Printing Technologies, Metropolitan and Gestetner of Ceylon PLC. Media sponsorship has been extended by Wijeya Newspapers Ltd. and Express Newspapers Ceylon Ltd.