Category: Daily Financial Times

As global markets place increasing emphasis on sustainable and deforestation-free supply chains, Sri Lanka’s rubber sector is taking proactive steps to strengthen its competitiveness. These efforts are being advanced through a European Union-supported capacity-building initiative to meet emerging international requirements.

Over 80 stakeholders from across Sri Lanka’s rubber value chain recently gathered in Colombo to help shape the country’s response to the European Union Deforestation Regulation (EUDR), a key sustainability measure that will influence future access to European markets.

Participants at the Stakeholder Consultation Workshop included government institutions, plantation companies, smallholder farmer organisations, processors, exporters, manufacturers, industry associations, and development partners.

Organised by the Rubber Development Department in collaboration with the European Union-funded Green Recovery Facility, implemented by Expertise France under the EU Global Gateway strategy, the workshop formed part of ongoing efforts to enhance Sri Lanka’s readiness for the EUDR and strengthen the long-term sustainability and resilience of the country’s rubber sector.

Designed to foster deforestation-free supply chains and sustainable agricultural production, the EUDR supports global commitments on climate action, biodiversity conservation and forest protection. For Sri Lanka, which has been classified as a ‘low-risk’ country under the Regulation, it presents an opportunity to advance sustainability across the rubber sector, strengthen traceability and due diligence mechanisms, and reinforce its position as a trusted supplier in global markets.

The workshop forms part of a broader initiative under the EU-funded Green Recovery Facility to support the sector’s adaptation to EUDR requirements. Combining assessments, stakeholder consultations and targeted capacity-building activities, the initiative seeks to enhance traceability and due diligence practices across the rubber value chain while helping safeguard continued access to key export destinations.

The initiative underscores the European Union’s commitment to promoting sustainable production systems, environmental stewardship and the long-term competitiveness of Sri Lanka’s export sectors.

Opening the workshop, Plantation and Community Infrastructure Ministry Secretary Gunadasa Samarasinghe emphasised the importance of ensuring that Sri Lanka’s rubber sector remains competitive and well-positioned to respond to evolving sustainability expectations and seize emerging opportunities in international markets.

Discussions explored stakeholders’ current levels of awareness and compliance with the EUDR, the role of government institutions in supporting implementation, international best practices and available traceability tools, and the priority capacity-building needs of actors across the rubber value chain.

The recommendations generated through the workshop will help shape the design of the initiative’s capacity-building program, including the development of a three-and-a-half-day Training of Trainers (ToT) program and stakeholder-specific training activities. The initiative is expected to directly train approximately 280 stakeholders across the rubber value chain, further strengthening the sector’s readiness to meet EUDR requirements. Positioning Sri Lanka’s rubber sector for a more sustainable, competitive and globally compliant future, the initiative will continue to build the capacities needed to meet evolving international market expectations.

Softlogic Life Insurance PLC convened its Investor Forum 2026 under the theme Big Moves, Big Impact, bringing together Sri Lanka’s investment community to present its performance, strategic priorities, and growth outlook. The Company highlighted the strength of its resilient business model, underpinned by disciplined execution, a diversified product portfolio, and a robust multi-channel distribution network.

A strong emphasis was placed on sustainability, with Softlogic Life outlining its commitment to responsible governance, long-term value creation, and customer-centric solutions that support financial inclusion and resilience. The Forum also showcased the Company’s continued investment in technology and digital transformation, with advancements in IT infrastructure, data analytics, and digital platforms positioned as key enablers of operational efficiency, scalability, and enhanced customer experience.

The company surpassed Rs. 40 billion in Gross Written Premiums in 2025 – the highest absolute growth in Sri Lanka’s life insurance industry and opened 2026 with Gross Written Premiums of Rs. 12.3 billion in the first quarter alone, a 37% year-on-year increase. Market share stands at 19.3%. Total assets reached Rs. 76 billion as at March 31, 2026. The theme Big Moves, Big Impact, which also anchors the company’s Annual Report, is not aspirational language. It is a description of what has already happened and a signal of what is being built next.

The forum featured a panel comprising Softlogic Life Managing Director Iftikar Ahamed, Softlogic Life Chief Financial Officer Nuwan Withanage, Advocata Institute CEO Dhananath Fernando and Dr Sithira Seneviratne, who specialises in Orthogeriatric and Peripoerative care. Together, they examined how Sri Lanka’s healthcare and insurance landscape is being reshaped by demographic change, rising medical costs, lifestyle shifts and the growing gap between the risks Sri Lankans carry and the protection they hold. Discussions ranged from global and Asian insurance trends to public policy, preventive health and the financial implications of an ageing population grounding the conversation in both international context and local urgency.

That urgency is real. Sri Lanka is ageing faster than any other nation in South Asia. One in four Sri Lankans is already over 60, and that proportion is projected to nearly double by 2050. Non-communicable diseases now account for 83% of all deaths in the country. Healthcare costs continue to rise well ahead of general inflation. Against this backdrop, insurance penetration remains among the lowest in Asia.

Softlogic Life’s growth trajectory has been further strengthened by its acquisition of Allianz Life Insurance Lanka and a $15 million long-term capital investment from development finance institutions Norfund and OP Finnfund milestones that have enhanced the company’s scale, capital base and international credibility at precisely the moment the market needs a strong, committed focus.

Softlogic Life Managing Director Iftikar Ahamed said: ‘We are heading into what some are calling a Silver Tsunami – a fundamental shift in how Sri Lanka ages, how people experience health, and what protection must look like to remain meaningful. People are living longer, and healthcare costs continue to rise. The Investor Forum gave us the opportunity to place these issues at the centre of a serious national conversation. Our commitment is to lead the evolution of healthcare protection in Sri Lanka building the solutions, partnerships and platforms that give people genuine confidence to live fully and plan ambitiously at every stage of life.’

As part of the forum, Softlogic Life launched Health for Life – a first-of-its-kind healthcare protection feature in Sri Lanka that removes one of the most fundamental limitations in the market: the expiration of health coverage. Unlike conventional health policies that lapse at a defined age, Health for Life provides continuous coverage with no endpoint, allowing customers to remain protected as they move through later stages of life precisely when that protection matters most.

Deputy CEO- Indu Attygalle said: ‘The insight behind Health for Life is straightforward: the moment people most need health coverage is often the moment traditional policies stop providing it. With one in four Sri Lankans already over 60 and that figure set to grow significantly, this is not a niche concern it is a mainstream one. Health for Life was built to change that. It gives customers the confidence to plan ahead, knowing their protection does not have an expiry date. That is what meaningful, long-term healthcare protection looks like.’

The launch was supported by an integrated brand campaign built around a powerful idea: that age is never a barrier to pursuing the passions (Honda Leda) that helps us live the best quality of life we aspire.

The campaign features global cricket legend Wasim Akram alongside Sri Lanka’s largest digital content creator Charith Silva known as Wild Cookbook two figures who, across generations and disciplines, embody the same truth. Akram, one of the greatest cricketers the world has seen, continues to inspire millions not through nostalgia but through the energy, discipline and purpose with which he lives today. Wild Cookbook represents a generation that is redefining what ambition and passion (Honda Leda) looks like at every age. Together, they give the campaign both reach and authenticity.

The new commercial featuring Wasim Akram and Wild Cookbook was officially launched at the event, reinforcing Softlogic Life’s commitment to inspiring people’s ‘good sicknesses’ without the limitation of age, with the promise that their health will be protected for life with ‘Health For Life.’

It was a day when some of the biggest stars on the planet made their FIFA World Cup 2026 bows and they did not disappoint as Lionel Messi, Kylian Mbappe and Erling Haaland all began their tournaments with a bang.

Mbappe got the ball rolling with a brilliant double against Senegal to become France’s all-time leading scorer with 58. Haaland also found the net twice as Norway celebrated their long-awaited return to the global stage.

It was Messi, though, who shined brightest of them all as he inspired defending champions Argentina to a comprehensive victory against Algeria with his maiden World Cup hat-trick. In a record sixth World Cup finals appearance, the maestro joined Miroslav Klose at the top of the all-time scoring list with 16.

France 3-1 Senegal

Kylian Mbappe pretended to play the flute then hit the highest of notes. In scoring two terrific strikes against Senegal, the frontman became France’s all-time leading scorer with 58 goals and the joint-fourth all-time leading World Cup marksman with 14.

After a goalless opening half, the game sprang into life in the second stanza as Mbappe and Bradley Barcola got France’s campaign up and running. Senegal pulled a goal back deep into injury time to make it 2-1 but Mbappe had the final word.

Iraq 1-4 Norway

Erling Haaland immediately followed in Mbappe’s footsteps with a dynamic double of his own. After a lengthy wait to play on football’s biggest stage, the striker wasted no time in making his mark as he hit a fantastic first and a fortuitous second to put Norway on the way to victory.

The Lions of Mesopotamia showed plenty of promise but failed to roar as they spurned a number of chances to make it 2-2. They were punished for their profligacy when Norway substitute defender Leo Ostigard and then an Aymen Hussein own goal, deep into injury time, sealed the rout.

Argentina 3-0 Algeria

Argentina began their Qatar 2022 campaign with a surprise defeat to Saudi Arabia. There would be no such repeat in Kansas City as Lionel Messi burnished his reputation as one of the game’s greatest-ever players with a performance for the ages.

Messi was already making history by taking the field against Algeria as he made a record sixth finals appearance. He further added to his legacy by scoring an exquisite treble to level Klose’s historic scoring mark. The 38-year-old kicked things off with a long-range strike, which was followed up with an opportunistic second. An exquisite late strike provided the perfect denouement.

Stats

At 18 years 143 days, Senegal’s Ibrahim Mbaye became the youngest African goalscorer at the World Cup to date.

Erling Haaland has scored in his last 11 competitive appearances for Norway dating back to November 2024.

At the age of 38 years and 357 days, Lionel Messi has become the oldest hat-trick scorer in World Cup history. The previous oldest was Cristiano Ronaldo who was 33 years and 130 days when he scored a treble against Spain in 2018.

Vallibel Finance further strengthened its nationwide presence with the inauguration of three new branches in Nelliady, Puthukkudiyiruppu and Kilinochchi, reinforcing the company’s commitment to enhancing financial accessibility and promoting inclusive economic development across Sri Lanka.

The newly opened branches are expected to improve customer convenience by providing faster and more accessible financial solutions to individuals, entrepreneurs, and businesses within Northern Peninsula. The expansion also marks a significant milestone in Vallibel Finance’s strategic growth journey, particularly within the Northern Province, where the company continues to deepen its engagement with local communities while supporting regional economic progress.

The Nelliadi and Puthukkudiyiruppu branches were ceremonially declared open on 8 June 2026, followed by the opening of the Kilinochchi branch on 9 June 2026. The inauguration ceremonies were graced by Managing Director Jayantha Rangamuwa together with members of the Corporate Management, staff members, customers, and well-wishers.

Addressing the gatherings, Rangamuwa emphasised the company’s dedication to expanding its presence across the Northern region while serving communities with inclusivity, professionalism, and respect for the area’s unique cultural and social values. He noted that Vallibel Finance remains committed to building long-term relationships that positively contribute toward community empowerment and regional development.

Through its expanding branch network, Vallibel Finance continues to offer a comprehensive portfolio of financial solutions including Leasing, Fixed Deposits, Gold Loans, and Auto Draft facilities. Backed by modern technological infrastructure and customer-centric service standards, the company aims to deliver seamless and efficient financial services tailored to the evolving needs of customers.

Global and local mineral sands experts, public officials, investors, and industry leaders converged in Colombo yesterday to examine how Sri Lanka can unlock greater value from its mineral resources through processing, technology, and investment rather than continued reliance on raw mineral exports.

The Mineral Sands Technical Conference 2026, hosted by The Ceylon Chamber of Commerce in partnership with Australia’s Mineral Technologies, brought together specialists from Sri Lanka, Australia, India, and South Africa to share technical expertise and international experience on building a globally competitive mineral sands industry while maintaining environmental stewardship and community benefits.

The discussions come at a time when demand for critical minerals used in the electric vehicles, renewable energy systems, advanced manufacturing, aerospace, and defence industries is reshaping global supply chains and creating new opportunities for resource-rich countries able to move beyond raw material exports into higher-value processing and manufacturing.

Industry and Entrepreneurship Development Minister Sunil Handunneththi said the Government’s new minerals policy was aimed at transforming Sri Lanka from a supplier of raw mineral resources into a competitive mineral processing hub supported by research, innovation, and skilled employment.

‘Unfortunately, in the previous decade, Sri Lanka was unable to fully realise the maximum benefits of its mineral resources due to limited long-term strategic work and insufficient value-added industrial expansion,’ he said. ‘Our mission is to transform Sri Lanka into a competitive leader in mineral processing, supporting industries, research, innovation, and skilled employment generation.’

The Minister said the Government’s strategy would focus on strengthening exploration, mining, processing, and value addition while ensuring environmental sustainability, transparency, and good governance.

The renewed focus reflects growing recognition of the strategic importance of Sri Lanka’s mineral resource base.

Industry assessments indicate the country possesses around 604 million tonnes of mineral sands alongside significant deposits of graphite, phosphate, quartz, and other industrial minerals, although experts noted that the country’s resource potential remains underexplored due to the absence of a comprehensive islandwide geophysical survey.

Sri Lanka’s mineral sands contain ilmenite, rutile, zircon, and monazite. The latter hosts rare earth elements such as neodymium and praseodymium, which are increasingly critical for electric vehicle motors, wind turbines, and advanced electronics manufacturing.

Sri Lanka’s mineral export potential is estimated at $ 778 million under the International Trade Centre’s Export Potential Map. A recent Pathfinder Foundation report estimated that the country’s longer-term mineral export opportunity could approach $ 2 billion if investment in downstream processing, value addition, and mineral-based manufacturing can be successfully developed.

Mineral Technologies Managing Director Andrew Foster said Sri Lanka was well positioned to benefit from rising global demand for strategic minerals and increasing efforts by governments and manufacturers to build resilient critical mineral supply chains.

‘Sri Lanka has long been recognised for its significant mineral sands resources and its important place within the global industry,’ Foster said. ‘Sri Lanka has an opportunity to play a meaningful role in this space and the experience gathered in this room today can help shape that journey.’

Drawing on the company’s experience across Australia, Africa, Asia, and the Americas, Foster said successful mineral industries were built not only on resource availability but also on technology, environmental stewardship, and strong institutional frameworks.

He also highlighted a characteristic that distinguishes mineral sands from many other extractive industries.

Mineral sands extraction typically involves recovering only a small percentage of economically valuable minerals while returning the bulk of the material to its natural environment through staged rehabilitation programs.

Unlike many mining operations, the extraction process itself generally does not involve chemical treatment, contributing to a comparatively lower environmental footprint.

Australian High Commissioner Matthew Duckworth described mineral sands as one of Sri Lanka’s most promising opportunities for export-led growth and economic diversification.

He said the sector had the potential to generate export earnings, create skilled employment, and support downstream industries, but cautioned that attracting long-term investment would require transparent regulation, predictable approval processes, policy consistency, and strong environmental governance.

‘Having resources in the ground is a very good thing. But extracting value from those resources is another thing altogether,’ Duckworth said.

He argued that countries derive the greatest economic benefits when they move beyond extraction into processing, manufacturing, and higher-value products.

Duckworth also pointed to opportunities for collaboration between Australian mining technology firms and Sri Lankan operators in areas including exploration, processing technology, skills development, technology transfer, and value-added production.

Technical sessions focused on the full mineral sands value chain, including project economics, resource development, mining and processing technologies, environmental and water management, product quality standards, Environmental, Social and Governance (ESG) requirements, rehabilitation practices, and global market dynamics.

The conference aimed to highlight that the larger opportunity extends well beyond mineral extraction itself. With growing demand for titanium minerals, rare earth elements, and other critical materials, Sri Lanka could potentially position itself as a regional hub for mineral processing, value addition, and technology-driven manufacturing, generating higher-skilled employment and capturing a greater share of value within global supply chains.

Discussions focused on the practical steps required to strengthen investment readiness, improve regulatory certainty, expand exploration, build technical capabilities, and create the industrial ecosystem needed to convert Sri Lanka’s geological advantages into sustained export growth and long-term economic value.

Recent media reports regarding the prosecution of a food importer and distributor for offences involving expired food products raise an important public policy question.

According to the reports, the company pleaded guilty to charges relating to the storage of expired food items together with unexpired goods, the offering of goods for sale without details of the importer or distributor, and conduct alleged to have been intended to mislead consumers. The court is reported to have imposed a fine of Rs. 75,000 and ordered the destruction of the food stocks concerned.

The destruction of the goods is undoubtedly a significant consequence. However, the case raises a broader question as to whether financial penalties of this magnitude provide a sufficient deterrent to prevent similar violations in the future.

Businesses engaged in the importation and distribution of food products often handle goods worth millions of rupees. Where offences involve matters such as expired food items, inadequate labelling, or conduct that may mislead consumers, the potential consequences extend beyond commercial considerations to public health and consumer confidence.

Particularly concerning is the report that food items supplied through these stores were distributed in bulk to leading hotels and markets across the country. Whether or not any expired products ultimately reached consumers, the mere possibility highlights the wider implications of such lapses. Sri Lanka’s tourism industry depends heavily on maintaining confidence in food safety standards. Any perception that hotels or food establishments may unknowingly receive improperly labelled or expired products has the potential to damage the country’s reputation among both local consumers and foreign visitors.

The purpose of penalties is not merely to punish past conduct but also to discourage future violations. If the economic benefit derived from non-compliance exceeds the financial consequences of being caught, there is a risk that some operators may regard such penalties as simply another cost of doing business.

There is also an important issue of fairness. Businesses that comply with food safety regulations incur substantial costs in maintaining proper storage facilities, stock controls, quality assurance procedures, traceability systems, and labelling requirements. Weak penalties may place such law-abiding businesses at a competitive disadvantage against those who choose to disregard regulatory requirements.

This case therefore provides an opportunity for policymakers to review whether the penalties currently available under consumer protection legislation remain adequate in today’s commercial environment. Monetary fines that may have been meaningful many years ago may no longer serve as an effective deterrent given inflation and the scale of modern business operations.

Consumers are entitled to expect that food products offered for sale meet the required standards and that those standards are enforced through penalties that are both fair and effective. Equally, honest businesses are entitled to compete on a level playing field where compliance with the law is not placed at a commercial disadvantage.

As families increasingly look at practical ways to support their parents and loved ones during retirement, Richard Pieris Finance Ltd. is encouraging everyone to consider something with lasting value – financial security and peace of mind for fathers who have spent their lives supporting their families.

At a time when financial stability and regular income are becoming increasingly important during retirement, Richard Pieris Finance’s Senior Citizen Fixed Deposit scheme offers families an opportunity to invest in the long-term wellbeing of their parents and loved ones through dependable monthly returns and institutional security. The offering reflects a growing preference for financial solutions that deliver not only attractive returns, but also lasting confidence, peace of mind, and financial independence for senior citizens and their families.

The Senior Citizen Fixed Deposit scheme has been designed to provide predictable monthly income, enabling retirees to better manage daily expenses while preserving their savings. Among the options available is the Company’s 25-month fixed deposit offering, which provides a monthly interest rate of 13%, translating into an annual equivalent return of 13.80%, making it one of the most attractive monthly income options currently available for senior citizens.

The offering is backed by Richard Pieris Finance’s strong financial fundamentals and governance framework. The Company holds a Fitch Rating of ‘A(lka)’ with a Stable Outlook, reflecting prudent risk management and financial stability. As a licensed finance company regulated by the Central Bank of Sri Lanka, eligible deposits are also covered under the Sri Lanka Deposit Insurance and Liquidity Support Scheme, providing an additional layer of assurance for depositors and their families.

CEO Lohika Fonseka noted that Father’s Day serves as a reminder of the sacrifices made by parents throughout their lives and the importance of supporting them through practical and meaningful solutions.

‘Many fathers spend decades planning and providing for their families. As they move into retirement, ensuring they have access to secure income streams and financial confidence becomes equally important. Our Senior Citizen Fixed Deposit scheme has been designed with this need in mind, providing reliable monthly returns supported by trust, transparency, and institutional strength,’ he said.

With its expanding branch network and customer-centric approach, Richard Pieris Finance continues to make financial solutions more accessible through personalised support, simplified processes, and countrywide service coverage.

This Father’s Day, the Company hopes to encourage conversations around financial wellbeing because sometimes the most meaningful gift is not what is given for today, but the security it creates for tomorrow.

In 2022, Sri Lanka faced an economic collapse that deeply affected millions. Fuel queues stretched for miles, essential medicines ran out, and for the first time, the country defaulted on its sovereign debt. Analysts blamed external debt, trade imbalances and fiscal mismanagement.

However, researcher Yolani Fernando argues that these explanations only scratch the surface. In her paper, ‘Sri Lanka’s Accountability Deficit’, based on research conducted under the Neelan Tiruchelvam Trust’s Macroeconomic Policy and Socioeconomic Rights Fellowship, Fernando identifies a deeper cause: the erosion of accountability within the country’s governance system.

She explains how the ‘third deficit’, an accountability deficit, alongside the familiar trade and budget deficits, led Sri Lanka toward an economic crisis. She insists that, unless this structural flaw is fixed, Sri Lanka risks repeating the mistakes that drove it into crisis.

Power without oversight

Fernando’s research connects the problem to the concentration of power in the Executive Presidency. Over decades, this system hollowed out the state’s ability to exercise checks and balances.

Policy decisions that were evidently harmful, such as the sweeping tax cuts of 2019 or the imprudent fertiliser ban, were allowed to proceed without institutional challenge. These measures went unchecked because the mechanisms meant to restrain Executive power had grown too weak to intervene.

Her study shows that institutions designed to protect the public interest, such as Parliament, the oversight committees, the Central Bank and the civil service, all lost independence and authority under successive administrations.

Parliament’s decline

Fernando’s research illustrates how Parliament was reduced to a rubber stamp. Oversight committees such as COPE (Committee on Public Enterprises), COPA (Committee on Public Accounts), and COPF (Committee on Public Finance) lost credibility under political capture. When the ruling party took control of these bodies, their role as watchdogs evaporated.

Fernando also highlights the longstanding practice of Presidents retaining the finance portfolio for themselves-i.e., the ‘absentee Finance Minister’ model. This removed an essential counterweight to presidential populism. Without an independent Finance Minister, there was little room for fiscal discipline, long-term policy planning, or unpopular but necessary reforms.

The Central Bank under pressure

Her research further shows how political interference undermined the Central Bank of Sri Lanka. Instead of acting independently, Central Bank Governors were subjected to direct instructions from Treasury Secretaries and Presidential Aides.

The results were disastrous. The fixing of the exchange rate, the denial of insolvency realities, and the reluctance to engage with the IMF all flowed from this breakdown of independence. By the time Sri Lanka finally turned to the IMF in 2022, the situation had deteriorated beyond repair.

The politicisation of the public service

Fernando also draws attention to the decline of Sri Lanka’s once prestigious Ceylon Civil Service. Over the years, it was replaced with a politicised bureaucracy that relied on patronage rather than merit.

This transformation left bureaucrats reluctant to challenge questionable decisions. Instead of resisting harmful policies, officials became complicit. Over time, the state’s technical capacity eroded, leaving the country more vulnerable to reckless policymaking.

Who bore the burden?

While Fernando’s paper is centred on governance, she makes it clear that these institutional failures had real human consequences. The fertiliser ban decimated farmers’ livelihoods and worsened food insecurity. The tax cuts hollowed out state revenues, resulting in reductions in health, education, and social welfare spending. Inflation and shortages placed unbearable pressure on low-income households and daily wage earners.

Women, informal workers and rural communities were among the hardest hit. These underserved groups, who are already excluded from decision-making, had little protection against the shockwaves of the crisis.

Fernando concludes that the accountability deficit is not just a matter of constitutional design. It is also a human rights issue because it undermines the socioeconomic rights of the most vulnerable.

A roadmap for reform

Fernando’s research does not stop at diagnosis. She outlines a series of reforms aimed at rebuilding accountability.

She espouses separating the Finance Ministry from the Presidency. This would restore fiscal prudence and create a buffer against populist decisions.

She calls for a revitalisation of parliamentary oversight. Key committees must be chaired by the opposition and provided with greater technical research support for budget scrutiny.

The Central Bank’s independence must be safeguarded-building on the 2023 Central Bank Act, the institution must be insulated from political interference in practice, not just on paper.

She recommends depoliticising the public service, asserting that transparent recruitment and career development are needed to restore professionalism and autonomy.

Finally, constitutional and financial management reforms must be implemented-there must be consistent enforcement of amendments such as the 21st Amendment to the Constitution and supporting legislation, such as the Public Financial Management Act and Debt Management Act.

However, Sri Lanka’s history of reversing reforms makes public vigilance essential. Laws alone are not enough. Sustained political will and citizen oversight are crucial.

Why this research matters now

Fernando’s study provides a lens for understanding why Sri Lanka’s crisis was not simply about economics. It shows how flawed governance allowed reckless policies to slip through unchecked, with devastating consequences for ordinary people.

Institutions that are meant to curb Executive excesses, such as the Parliament, the Central Bank, the Treasury and the civil service, must function as real guardians of the public interest. Without such accountability, policymaking will continue to prioritise short-term political gain over long-term stability and human rights.

A call to action

This is a reminder that economic recovery is not just about debt restructuring or financial reform. It requires rebuilding the very institutions that hold leaders accountable.

For citizens, the message is clear: accountability cannot be left to politicians alone. Civil society, independent media, and the public at large must play an active role in ensuring reforms are implemented and maintained.

The 2022 crisis exposed the fragility of Sri Lanka’s governance structures. Yet, it also offers an opportunity, a chance to rebuild institutions, restore trust and ensure that policymaking serves the collective good.

If Sri Lanka is to avoid another collapse, it must address its accountability deficit head-on. As Fernando shows, this is not just a matter of good governance. It is a matter of justice, rights and the protection of the most vulnerable.

The District Court of Colombo has recently issued an enjoining order against the former Minister and Member of Parliament Wimal Weerawansa on an application preferred by The Kingsbury PLC.

The Kingsbury PLC set out in the plaint that, it is one of the most prominent and well-known luxury hotels in Sri Lanka having a long-standing presence in the hospitality industry in Colombo and a reputation within both Sri Lanka and internationally. The plaint further included that the company’s board of directors consists of esteemed individuals in the country. It was further set out that The Kingsbury was originally constructed in the early 1970s and opened in or about the year 1973 as the Ceylon Inter-Continental, which at the time was the first five-star hotel in Colombo The hotel was rebranded and reopened in or around January 2013 following a major refurbishment and development under the name ‘The Kingsbury’. It was also set out that the reputation and goodwill attached to The Kingsbury constitutes a valuable commercial asset of The Kingsbury PLC and form and integral part of its business operations.

The Kingsbury PLC in its Plaint stated that, against this backdrop, Wimal Weerawansa, in or around February 2026, directly and/or indirectly referred to the Kingsbury PLC through various social media platforms and made statements of a defamatory nature. The Kingsbury PLC further alleged that Wimal Weerawansa, either expressly or by innuendo, identified the Kingsbury PLC and, through the publication of such defamatory statements, damaged the reputation of The Kingsbury PLC. In particular, it is alleged that Wimal Weerawansa disseminated a video containing the said statements across several social media platforms, thereby causing further harm to the Company’s reputation.

Following Weerawansa’s failure to respond to a Letter of Demand from The Kingsbury PLC seeking Rs. 1 billion in damages and requiring him to cease and desist from his wrongful conduct, the Company instituted proceedings in the District Court of Colombo and upon support, the District Judge of Colombo issued an Enjoining Order restraining the Defendant from republishing, rebroadcasting, publicising, distributing or circulating the said video.

The matter is to be called in Court on 22 June 2026.

The Plaintiff Kingsbury PLC was represented by M. A. Sumanthiran President’s Counsel with Lakshmanan Jeyakumar Attorney-at-Law and Gayani Wickramarathne Attorney-at-Law instructed by R. Moahan Balendra Attorney-at-Law.

There is cautious optimism in the past few days that the peace treaty between the US and Iran would lead to a de-escalation of the situation in the Middle East/Gulf region and the opening of the Straits of Hormuz, a lifeline for the world’s shipping ways.

The framework of a peace deal between the US and Iran has been reached, US President Donald Trump and senior Iranian officials said on Monday, putting the entire world at ease. The reopening of the Strait of Hormuz would depend on the signing of an initial memorandum of understanding on Friday, which Pakistan, acting as mediator, said would take place in Geneva.

Much of the success of a peace deal would depend on Israel which continues to attack Lebanon, even though Iran insists that there can be no peace unless Israel ceases these attacks.

This conflict has particularly hurt countries such as Sri Lanka which depend heavily on oil imports from the region and on the expatriate workers in the region whose inward remittances are crucial for the economy.

Since the start of the war in February, Sri Lanka has seen a rapid rise in oil prices while its tourism sector too has been hit due to the disruption of airline services through aviation hubs such as Dubai, Doha and Abu Dhabi.

Sri Lanka has done its best to remain neutral during the conflict trying to juggle US/Israel interests and balancing relations with Iran and the Gulf region nations. Since the inception of the conflict the Government has called for restraint and dialogue and use of diplomatic initiatives to de-escalate the tense situation. It is the best the country can do given that all these nations are important for Sri Lanka and the country cannot afford to fall foul of any of them.

More than a million Lankans are employed in the region and while their safety and security have been of concern, almost all of them have chosen to remain in these countries hoping for a quick resolution to the conflict.

That a majority of Sri Lankans have chosen to remain in their jobs in the conflict hit region shows a hard truth. People will not give up a lucrative job and return to the country knowing they would be hard-pressed to find proper employment here. For many Sri Lankans who have lived through years of violence and now work in the region, the random Iranian missiles coming in may not cause too much worry and hence their decision to brave the hard times.

The Government on its part will be relieved that the foreign remittances from the Sri Lankan workers have not been impacted by the crisis.

The Central Bank of Sri Lanka (CBSL) said that the country received $847 million in workers’ remittances in May 2026, marking a 32% increase compared to the $641.7 million received in May 2025.

According to a CBSL report, the May 2026 figure is the second-highest monthly remittance recorded in the country’s history, behind the record $879.1 million received in December 2025. During the first five months of 2026, Sri Lanka earned $3.9 billion in remittances, up 26% from the $3.10 billion recorded during the same period last year. The highest number of remittances this year came from the United Arab Emirates (UAE).

So while Sri Lanka can be thankful that its citizens are doing their part to assist the country’s economy, the world as a whole is hoping that the US-Iran agreement will see a permanent end to hostilities and more engagement to iron out the issues that have prevented peace between Iran, the US and much of Europe for decades.