Category: Daily Financial Times

The Cabinet of Ministers this week approved the reallocation of 408 housing units originally acquired for the suspended elevated expressway project to resettle flood-affected families in Kolonnawa and households living along a high-risk petroleum pipeline corridor.

Under the decision, 336 housing units from the Sanhinda Sevana housing complex in Kolonnawa will be allocated to families repeatedly affected by flooding, while 72 units from the Helamuthu Sevana housing complex in Henamulla will be provided to non-title occupants residing along the underground fuel pipeline operated by the Ceylon Petroleum Corporation (CPC).

Authorities have identified the urgent need to relocate 336 families living in flood-prone areas of Kolonnawa, one of the country’s most vulnerable urban flood zones, as well as 72 families occupying land above or adjacent to the CPC’s underground petroleum pipeline.

The housing units were originally purchased by the Road Development Authority (RDA) from housing projects developed by the Urban Development Authority (UDA) for families expected to be displaced by the proposed elevated expressway linking the New Kelani Bridge to Athurugiriya via the Outer Circular Highway.

The RDA had acquired a total of 1,100 housing units across the Sanhinda Sevana, Helamuthu Sevana and Lakhiru Sevana housing schemes for that purpose.

However, the resettlement program linked to the expressway was halted after the Court of Appeal of Sri Lanka issued an enjoining order suspending Phase II of the elevated highway project.

With the housing stock remaining unused, the Government has now opted to redirect part of the inventory towards addressing long-standing urban resettlement challenges.

The proposal was submitted by the Transport, Highways and Urban Development Bimal Rathnayake.

The Colombo stock market yesterday ended the week in red, ending a two-session positive run. During the week, the ASPI gained 3.35% and the S and P SL20 was up 3.12%

Yesterday, negative contributors to the ASPI outweighed gainers with 139 counters closing in red and 70 in green, with the ASPI ending down 0.33% or 74.83 points at 22,361.31 and the S and P SL20 falling 0.18% or 11.48 points to 6,215.30.

Market turnover was nearly Rs. 1.9 billion on over 75.7 million shares traded. Foreigners were net sellers on a net outflow of Rs. 379.5 million.

The ASPI was dragged down by SAMP, HNB, RIL, JKH and CINS while positive contributions to the index came from CTHR, MELS, LION and BIL.

First Capital Research said the bourse experienced a subdued trading session, with weakened investor confidence persisting from previous sessions and exerting downward pressure on both indices. Investor participation from both HNW and retail segments remained relatively subdued.

The capital goods sector led the daily turnover with a share of 24%, followed by the banking, and diversified financials sectors collectively contributing 33%.

Gaya Nagahawatta’s translation titled ‘The Scintillating Darkness Sighted by the Aged Blacksmith’ of the award-winning Sinhala short story by Piyal Kariyawasam was selected as a winner at the Himal Fiction Fest 2026. This is the title story of Kariyawasam’s multiple award-winning third short story collection, ‘Aachariseeya dutu didulana andakaraya’, published by Godage Publishers in 2008.

The online Himal festival commenced on 8 June and concludes on 19 June with the staggered release of six different works of fiction translated into English from the rich diversity of South Asian languages.

Himal Southasian is Southasia’s first and only regional magazine of politics and culture. To mark its 39th anniversary, the magazine organised this literary festival focused on celebrating ‘English-language translations of fiction new or old from any South Asian language.’

Gaya Nagahawatta’s translation of the Sinhala short story was among six winners that shared the award. The other winning translations (in alphabetical order) were from Balochi, Gujarati, Kashmiri, Tamil, and Telugu. All the winning stories are accessible to the reader on the Himal website (himalmag.com/tag/himal-fiction fest-2026/).

‘Aachariseeya dutu didulana andakaraya’ won all three major national-level Sri Lankan awards for Sinhala short story collections that year-the State Award for Best Short Story Collection, the Vidyodhaya Literary Festival Award, and the Godage Publisher’s Award, establishing Kariyawasam as a significant writer among his contemporaries.

This translation of the title story from ‘Aachariseeya dutu didulana andakaraya’ marks the first time a story from this collection has been translated and published. ‘The Scintillating Darkness…’ opens with the disturbing sighting of a damaged dead body of a young rebel, mourned silently by villagers in the face of oppressive state forces, and brings to light the resilience of youth and the unity among villagers across generations.

Piyal Kariyawasam is a writer, theatre practitioner, and lecturer. He has published six works of fiction, staged more than five theatre productions, and also worked in film and television. He has won over fourteen national awards. Piyal Kariyawasam’s latest Sinhala short story collection, ‘Ridee reyaki kalu diviyeki’ (Silver Night Black Leopard) was published in December 2025, as a Sarasavi publication.

Gaya Nagahawatta is a translator, educator, and multidisciplinary artist. She works in Sinhala and English. Apart from her work in local media and publications Gaya’s writing has appeared on Commonwealth Writers’ adda, Literary Shanghai, and SAARC publications. She has also served as non-fiction editor for Rowayat, a literary website. In April 2026, she curated a selection of contemporary Sri Lankan writing- drawn from Sinhala and Tamil literary works-for ‘Avaaz’, a Pakistani online column (lakeermag.com/avaaz-sinhala-tamil-eng), facilitating the translation of Sri Lankan writing into Urdu, Punjabi, and other Pakistani languages. Her win at Himal is the latest step in this ongoing commitment to taking local literature across borders.

Sysco LABS athletes delivered an outstanding performance at the 73rd Mercantile Table Tennis Association Open Championship, securing multiple titles and strong finishes across several categories while demonstrating exceptional skill, determination, and sporting excellence.

Leading the achievements was Nimesh Ranchagoda, who emerged as Champion in both the Open Men’s Doubles and Open Mixed Doubles categories, while also securing the Runner-Up position in the Open Men’s Singles event. Sumith Rohana advanced to the Quarter Finals of the Veterans category, while Malinga Jayalath reached the Quarter Finals of the Novices Men’s Singles competition.

The impressive results mark a significant milestone for the Sysco LABS Table Tennis Club and reflect the dedication, discipline, and commitment that Sysco LABS athletes bring to their sport.

Opposition MP Ravi Karunanayake has called for lowering the medium-term inflation target to 2-3% from the current 5%, arguing that the forthcoming statutory review of the country’s monetary policy framework offers a critical opportunity to strengthen currency stability, protect household savings and reduce the risk of future balance-of-payments crises.

In a letter to President and Finance Minister Anura Kumara Dissanayake, Karunanayake urged the Government to begin preparations ahead of the October 2026 review of the Monetary Policy Framework Agreement (MPFA), under which the Central Bank of Sri Lanka (CBSL) currently targets medium-term quarterly headline inflation of 5%.

The existing framework was established under the Central Bank of Sri Lanka Act No. 16 of 2023 and formalised through an agreement signed on 5 October 2023 between then Finance Minister Ranil Wickremesinghe and CBSL Governor Dr. P. Nandalal Weerasinghe. Under the law, the inflation target and associated parameters must be reviewed every three years, placing the next review due in October 2026.

Karunanayake argued that while a 5% inflation target may have been appropriate during the immediate post-crisis adjustment period, Sri Lanka’s experience of sovereign default, currency instability, balance-of-payments pressures and the erosion of household purchasing power warranted a reassessment of the framework.

‘The preservation of purchasing power and the protection of the value of the Rupee must therefore be regarded not merely as technical monetary objectives but as fundamental pillars of economic and social policy,’ he said.

A central theme of the letter is the contention that Sri Lanka could be drifting towards a stagflationary environment in which economic growth remains weak while inflationary pressures persist.

Karunanayake noted that although macroeconomic stability had improved since the depths of the crisis, private sector investment remained subdued, industrial activity was operating below potential, credit growth remained constrained and household purchasing power continued to face pressure. At the same time, inflationary pressures continued to emerge despite the absence of strong aggregate demand.

He warned that a policy framework which tolerated relatively high inflation while growth remained weak risked producing ‘the worst of both worlds’ through stagnant economic activity and a continued erosion of living standards.

Karunanayake also questioned whether Sri Lanka’s inflation problem was primarily demand-driven, arguing instead that much of the country’s inflation over the past decade had originated from imported and supply-side factors.

He identified exchange rate depreciation, imported fuel and energy costs, food supply disruptions, utility tariff revisions, tax increases, global commodity price movements and external financing constraints as among the principal drivers of inflation.

Accordingly, he argued that excessive reliance on interest rate adjustments alone could not adequately address the underlying causes of inflation.

‘Higher interest rates cannot generate foreign exchange reserves. Higher interest rates cannot increase export earnings. Higher interest rates cannot reduce international oil prices. Higher interest rates cannot improve productivity,’ Karunanayake said, while stressing that inflation control remained important within a broader economic strategy.

The former Finance Minister argued that Sri Lanka’s recurring economic crises had historically been balance-of-payments crises rather than conventional inflation crises.

He contended that reserve depletion, persistent currency depreciation, weak domestic savings, inadequate capital formation and dependence on external financing had repeatedly exposed the country to instability.

As a result, he proposed that future monetary policy should place greater emphasis on building foreign exchange reserves, encouraging domestic savings, promoting capital formation, supporting productive investment, improving export competitiveness and preserving the long-term value of the rupee.

‘The true foundation of monetary stability lies not merely in the management of consumer prices but in the strengthening of the nation’s financial stock and productive capacity,’ the letter stated.

Karunanayake supported his case by citing inflation targets maintained by several regional and advanced economies.

According to the letter, India operates with a 4% inflation target and a tolerance band of plus or minus 2%, Indonesia targets 2.5% with a similar tolerance range, while Thailand maintains a target range of 1-3%. Malaysia has historically maintained inflation around 2-3%, while Vietnam generally seeks to keep inflation below 4-4.5%. China’s inflation rate was cited at negative 0.4%.

He also pointed to the inflation objectives of major central banks, including the European Central Bank, Bank of Canada, Bank of England and US Federal Reserve, all of which target inflation around 2%, while the Swiss National Bank seeks to keep inflation below 2%.

‘The common principle underlying these frameworks is clear: long-term economic prosperity is best supported by low, stable and predictable inflation, accompanied by strong monetary credibility and confidence in the domestic currency,’ he said.

Karunanayake urged the Government to use the October 2026 review to undertake a comprehensive reassessment of the monetary policy framework. His proposals include: Reducing Sri Lanka’s medium-term inflation target from 5% to a 2-3% range; narrowing the existing tolerance band to strengthen policy credibility and accountability; expanding the framework to include reserve accumulation, domestic savings mobilisation, capital formation, productive investment and export competitiveness as explicit policy considerations; requiring enhanced Central Bank reporting to Parliament on inflation, reserve accumulation, exchange rate stability and growth outcomes; and embedding greater recognition of Sri Lanka’s historical vulnerability to balance-of-payments crises within the monetary policy framework.

Karunanayake said the review presented an opportunity to align Sri Lanka’s monetary architecture more closely with long-term development objectives.

‘A revised inflation target of 2-3% combined with a broader policy focus on reserve accumulation, savings mobilisation, capital formation and productive growth would send a powerful signal that Sri Lanka is committed to preserving the value of its currency, protecting its citizens’ savings and preventing a recurrence of the crises that have repeatedly hindered our nation’s progress,’ he said.

The acclaimed play DCS: Dear Children, Sincerely… 7 Decades of Sri Lanka has been officially selected to participate in one of Germany’s most recognised international theatre festivals.

The play will be staged tomorrow (21 June) at 7.00pm at the Lionel Wendt Theatre, offering local audiences an opportunity to experience one of STG’s most powerful works before it leaves for its premiere performance in Europe.

DCS: 7 Decades of Sri Lanka directed by award winning playwright and theatre director Ruwanthie de Chickera, is a research-based, highly charged ensemble performance that takes audiences through 70 years of Sri Lanka’s dark and turbulent history. Across seven scenes, each representing a different decade, the production traces the country’s socio-political journey from Independence in the 40s, through to the end of the war in 2009.

Created through the Dear Children, Sincerely… arts research project, the production draws from conversations with senior citizens born in the 1930s. Their memories, reflections and lived experiences form the foundation of the performance, bringing personal testimony and national history into direct conversation with present-day audiences.

Following critically very well received performances in Sri Lanka, India, Rwanda and Abu-Dhabi, DCS was scouted and invited to Theater der Welt 2026 in Chemnitz, one of Germany’s leading international festivals for contemporary performing arts. The invitation marks a significant moment of recognition for STG and for Sri Lankan theatre, placing a locally researched, devised and performed production within official selection of a global program.

After two shows in Chemnitz on the 26 and 27 June, the touring company will perform in Berlin on the 29 June at UfaFabrik.

For Sri Lankan audiences, the 21st June performance is more than a pre-tour staging. It is an opportunity to witness a Sri Lankan ensemble carrying one of the country’s most searching theatrical works to Europe.

DCS asks how a country remembers itself, what younger generations inherit from the histories they are born into, and how art can open conversations about memory, violence, silence, loss and resilience.

The play presents on stage respected stage actors such as Sanjeewa Upendra, Nipuni Sharada, Akalanka Prabashwara, Duminda Sandaruwan and Pia Hatch alongside a young and energetic ensemble. It is performed in Sinhala, Tamil and English and runs for approximately 1 hour and 30 minutes.

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.

As Sri Lanka accelerates its transition towards renewable energy, rooftop solar photovoltaic (PV) systems and Battery Energy Storage Systems (BESS) are becoming increasingly common across homes, businesses, and industries. While these technologies offer significant benefits in terms of clean energy generation, reduced electricity costs, and improved energy security, experts caution that safety considerations must evolve alongside this rapid growth.

These important issues were discussed at the Technical Forum titled ‘Powering Safety in Rooftop Solar and Battery Energy Storage Systems (BESS) – Mastering DC Risks, Protection Strategies and Modern Safety Practices,’ organised by the Electrical, Electronics and Telecommunication Engineering Sectional Committee (EETESC) of the Institution of Engineers, Sri Lanka (IESL). The forum brought together regulators, utility engineers, renewable energy specialists, technology providers, consultants, academics, and industry professionals. Presentations were delivered by Public Utilities Commission of Sri Lanka Environment, Efficiency and Renewable Energy Director Eng. Amila C. Rajapaksha, Sungrow Solution Manager Eng. Aaron Li, Huawei Senior Solution Manager Eng. Mo Haiqi, and Electricity Distribution Lanka Chief Engineer Eng. Charith Shanaka.

The widespread adoption of rooftop solar systems has transformed many electricity consumers into energy producers. However, this transformation has introduced new technical challenges related to electrical safety, fire prevention, system reliability, and environmental sustainability. Industry professionals emphasise that renewable energy expansion should not be measured solely by installed capacity, but also by the quality, safety, and long-term sustainability of the systems being deployed.

One of the major concerns associated with solar installations is the risk posed by direct current (DC) electrical faults. Unlike conventional alternating current (AC) systems, DC arc faults can persist for longer periods, increasing the likelihood of overheating and electrical fires. Faulty wiring, damaged cables, loose connections, and poor workmanship are among the most common causes of such incidents. Modern protection technologies, including Arc Fault Circuit Interrupters (AFCI) and Rapid Shutdown Devices (RSD), are increasingly being recognised as essential safety features that can help minimise these risks.

Battery Energy Storage Systems, which are gaining popularity as a means of improving energy independence and enhancing renewable energy utilisation, present another set of challenges. Although modern battery technologies incorporate sophisticated monitoring and protection systems, experts note that thermal runaway-a condition where battery temperatures rise uncontrollably-remains a critical safety concern. Preventing such incidents requires multiple layers of protection, including battery management systems, fire suppression measures, ventilation systems, emergency shutdown arrangements, and strict adherence to installation standards.

Regulatory authorities and utility providers have also raised concerns regarding the growing use of non-compliant equipment, unauthorised system modifications, and installations carried out by unqualified personnel. These practices not only compromise system performance but can also create significant hazards to public safety. Industry stakeholders stress the need for stronger coordination among regulatory bodies, standards organisations, and enforcement agencies to ensure that renewable energy systems meet appropriate quality and safety requirements.

Environmental considerations are emerging as another important aspect of the renewable energy transition. With the increasing use of Lithium Iron Phosphate (LFP) batteries and solar equipment, questions surrounding end-of-life management, recycling, and disposal are becoming increasingly relevant. Experts warn that establishing proper recycling frameworks and traceability mechanisms today will be essential to avoiding future environmental challenges.

Speaking on the evolving renewable energy landscape, Public Utilities Commission of Sri Lanka Environment, Efficiency and Renewable Energy Director Eng. Amila C. Rajapaksha highlighted the importance of adapting safety and regulatory practices to meet the demands of a rapidly changing electricity sector. He noted that as distributed energy resources continue to expand, maintaining public safety and grid reliability will require greater attention to standards, compliance, and technical oversight.

Similarly, industry experts emphasised that advanced technologies alone cannot guarantee safety. Proper engineering design, skilled installation, effective maintenance, and continuous industry awareness remain fundamental to ensuring the long-term success of renewable energy systems.