Category: Daily Financial Times

We live and work in a ‘VUCA’ world. In other words, our environment is Volatile, Uncertain, Complex and Ambiguous. In short, a VUCA world means change is constant, outcomes are uncertain, and clarity is often limited. Therefore, success depends on adaptability and smart decision-making. These will thrive only in an environment where the country’s structural foundations are strong. In other words, Sri Lanka’s ability to withstand domestic/external shocks will depend on how strong the country’s structural foundations are. Economic reforms are a vital component in building and strengthening Sri Lanka’s structural foundations. The key factors that have impeded Sri Lanka’s long-term development have been the lack of consistent and predictable policies, and the very slow implementation and sometimes non implementation of urgently required economic reforms.

Although macroeconomic indicators such as inflation, gross official reserves and exchange rate stability improved after the 2022 economic crisis, the IMF has emphasised that continued economic reforms are essential to sustain macroeconomic stability and ensure durable growth.

The sections below deal with some of the key economic reforms that need to be urgently pursued and implemented.

State-Owned Enterprises (SOE) reforms

Effective State-Owned Enterprises (SOEs) reform in Sri Lanka require the establishment of professionally qualified and independent boards, merit-based recruitment systems and performance-oriented management structures. Financial transparency should be improved through regular publication of audited financial statements prepared according to international accounting standards. Cost-reflective pricing mechanisms are also essential in sectors such as energy and transport. Further, selective private sector participation and increased competition can improve innovation, service quality and operational efficiency while reducing monopolistic inefficiencies. Procurement reform, digital transformation and stronger anti-corruption measures are equally important for reducing waste and improving public trust in state institutions (IMF 2025, Sri Lanka: Fourth Review under the Extended Fund Facility Arrangement).

The experiences of Temasek Holdings in Singapore and Khazanah Nasional Berhad in Malaysia provide important lessons for governments seeking to improve the management of state-owned assets and enterprises. Both institutions were established to hold and manage government investments/enterprises.

One of the key lessons from both models is the importance of separating government ownership from operational management. Although the governments of Singapore and Malaysia remain the ultimate owners of these institutions, investment and business decisions are delegated to professional boards and management teams. Both institutions highlight the importance of building strong institutions rather than relying on individual leaders. Their effectiveness stems from clear legal mandates, professional governance structures, independent oversight mechanisms and robust accountability frameworks. These institutional arrangements have enabled continuity and stability despite changes in political leadership and economic conditions.

For countries such as Sri Lanka, the key takeaway is not simply to establish a state holding company, but to create institutions that are insulated from political interference, managed by competent professionals, and focused on long-term value creation. By applying these principles, the government can transform state-owned assets from fiscal burdens into productive sources of national wealth and economic development. [Temasek Holdings (2025) Temasek Review 2025, Singapore: Temasek Holdings, https://www.temasek.com.sg ; Khazanah Nasional Berhad (2025) Khazanah Annual Review 2025: Investing with Purpose for Malaysians, https://www.khazanah.com.my/publication/khazanah-annual-review-2025/]

One of the most successful SOE reforms undertaken in Sri Lanka was in relation to the telecommunications sector. In more recent times, under the SOE reform agenda, the CEB and CPC have undergone major reforms. The lessons learnt from successful SOE reforms in Sri Lanka should be used as a valuable guide in implementing reforms in relation to other relevant SOEs too.

Land and ladies

Land and female labour are two heavily underutilised assets in Sri Lanka. Reforms in relation to these two areas are imperative if Sri Lanka is serious about long-term economic development. The sections below discuss the reforms that need to be implemented in relation to these two important areas.

Land market reform and land governance in Sri Lanka

Land market reform has emerged as a critical component of Sri Lanka’s broader economic transformation agenda. Despite its strategic importance for agriculture, industry, tourism, housing and infrastructure development, land remains one of the most underutilised economic resources in the country. Investors, farmers and entrepreneurs continue to face significant challenges arising from fragmented ownership structures, incomplete land titling, lengthy approval procedures, outdated land administration systems and regulatory uncertainty regarding land use. These constraints increase transaction costs, reduce investment incentives and limit the productive utilisation of land assets across the economy.

A key challenge continues to be the incomplete nature of Sri Lanka’s land registration and titling system. Large portions of land remain subject to uncertain ownership records, overlapping claims and outdated documentation. These weaknesses reduce legal certainty, hinder property transactions and restrict access to finance because landowners often face difficulties when using land as collateral. The broader national digital transformation programme, supported by international development partners, seeks to improve transparency, service delivery and administrative efficiency through the digitalisation of government systems, creating opportunities for modernising land administration and cadastral management [World Bank (2025) World Bank Group and Sri Lanka Partner to Improve Digital Services and Grow the Digital Economy].

Agricultural land use remains one of the most contentious areas of land policy. Existing legislation, including the Protection of Paddy Lands and Wetlands Act No. 1 of 2000 and related agrarian regulations, continues to impose significant restrictions on the conversion of paddy lands to alternative uses. These regulations were originally designed to safeguard domestic food security, preserve agricultural land and protect environmentally sensitive wetlands. Later amendments created procedures under which certain paddy lands could be released, reclassified, or approved for non-agricultural uses under specified conditions. These reforms were introduced partly because many lands classified as paddy fields had not been cultivated for years and were located in rapidly urbanising areas and in areas where paddy cultivation has become commercially unviable due to labour shortages, rising production costs, irrigation constraints and changing market conditions. As a result, the law today is generally regarded as more flexible than the original 2000 Act, although controls remain significant.

Land reform is also closely linked to agricultural modernisation. Although agriculture continues to employ a substantial share of Sri Lanka’s workforce, productivity remains relatively low compared with other sectors. Fragmented landholdings, limited economies of scale and constraints on land leasing and consolidation continue to inhibit mechanisation, technological adoption and commercial farming. Recent national development strategies place increasing emphasis on improving agricultural productivity, promoting value-added exports and strengthening climate-resilient agricultural production systems. Achieving these objectives will require more flexible land markets, secure land tenure arrangements and improved access to long-term leasing mechanisms that facilitate investment in modern agricultural technologies. [Government of Sri Lanka (2024) Economic Transformation Act, No. 45 of 2024; World Bank (2025), World Bank Group and Sri Lanka Partner to Boost Agricultural Productivity, Rural Jobs and Climate Resilience].

Labour market reforms

Labour market reforms are also important in improving investment attractiveness and productivity. Sri Lanka’s labour regulations are often viewed as rigid, especially regarding hiring and termination procedures. Modernising labour laws while protecting worker rights could encourage firms to expand employment and invest in new industries. In addition, increasing female labour force participation would significantly enhance economic productivity. The World Bank identifies labour market reform and greater female participation as crucial factors for sustaining medium-term growth and reducing poverty [World Bank (April 2025) – Sri Lanka Development Update: Staying on Track]. Further, the Economic Transformation Act, No. 45 of 2024 identifies increased female labour force participation as a key national economic target.

Ladies to the fore

Increasing female labour force participation and female employment is not only a matter of gender equality but also critical for Sri Lanka’s long-term economic growth, resilience, poverty reduction, productivity enhancement, household welfare and social development. The International Monetary Fund has argued that narrowing gender gaps in labour markets can significantly increase gross domestic product in developing economies [International Monetary Fund (2022), Sri Lanka: Selected Issues Paper – Gender and Labour Market Participation]. For Sri Lanka, mobilising the underutilised female workforce could help address labour shortages associated with population ageing and outward migration.

Sri Lanka has historically recorded relatively low levels of female labour force participation compared with many middle-income countries, despite the country’s strong achievements in female education, literacy, and health outcomes. Female labour force participation rate (FLFPR) refers to the proportion of women aged 15 years and above who are economically active, i.e. either employed or actively seeking employment. According to recent World Bank and Department of Census and Statistics (DCS) data, Sri Lanka’s female labour force participation rate remained approximately 31.6% in 2024, significantly below the male participation rate of nearly 69.7%. This persistent gender disparity indicates that a substantial proportion of women remain outside the formal labour market despite possessing educational qualifications and skills. [World Bank (2024): Female Labor Force Participation Rate – Sri Lanka; Department of Census and Statistics, Sri Lanka: Labour Force Survey Annual Report 2024]

Female unemployment in Sri Lanka also remains consistently higher than male unemployment. According to the Sri Lanka Labour Force Survey Annual Report 2024 of the Department of Census and Statistics, Sri Lanka, the female unemployment rate was 7.1% in 2024, compared with 3.0% for males.

Addressing Sri Lanka’s female labour market deficits requires a multi-dimensional policy response. The expansion and subsidisation of childcare infrastructure is arguably the most impactful single intervention available to policymakers. Drawing on the experience of South Korea, Vietnam, and Chile, the ADB recommends that Sri Lanka develop a national childcare framework combining public provision, employer-subsidised workplace crèches, and co-payment schemes calibrated to household income. The ILO further recommends extending maternity leave benefits to a social insurance model funded through tripartite contributions, to remove the current employer-side disincentive to hiring women. [Asian Development Bank and International Labour Organisation (2023), Investments in Childcare for Gender Equality in Asia and the Pacific].

Flexible working arrangements, including part-time employment, hybrid work, remote work opportunities, and flexible working hours, could also help women balance family and employment responsibilities more effectively. The expansion of digital infrastructure and remote employment opportunities may particularly benefit educated women living outside major urban areas. The growing digital economy and BPO sector represent a particularly promising avenue for expanding female employment, given flexible work arrangements, competitive wages, and lower physical mobility requirements [International Finance Corporation (2023), Women’s Economic Opportunities in South Asia: Digital Employment and Entrepreneurship].

When physical travel is indispensable, enhanced public transport systems with improved security measures, lighting, and surveillance can also encourage women to seek employment further from home.

Youth female unemployment is a particularly acute dimension of the problem. The Labour Force Survey 2023 of the Department of Census and Statistics, reports female youth unemployment (ages 15-24) at approximately 28.6%, compared to 16.4% for male youth. The World Bank has linked Sri Lanka’s youth female unemployment to a mismatch between university and vocational training curricula, and private sector demand, noting that investment in STEM education for women and industry-aligned skills training for women could materially reduce this gap.

Although female educational attainment in Sri Lanka is relatively high, women are concentrated in arts and humanities streams while remaining underrepresented in science, technology, engineering, and mathematics (STEM) fields. Encouraging girls and women to pursue STEM education, vocational training, entrepreneurship development, and digital skills training can improve women’s access to high demand employment opportunities. [International Finance Corporation (2023] Women’s Economic Opportunities in South Asia: Digital Employment and Entrepreneurship].

Government and private sector partnerships could support female entrepreneurship through mentoring programmes, business development services and improved access to finance and markets. Women-owned small and medium enterprises have significant potential to contribute to employment generation and economic diversification if adequate institutional support is provided.

Trade and export-oriented reforms

Sri Lanka’s economy has remained relatively inward-looking compared to other successful Asian economies. It is now widely accepted that policies which are neutral, between those goods produced for the export market and those that are produced for the domestic market, lead to a superior outcome, by allowing comparative advantage to assert itself.

Sri Lanka’s export composition has changed little from that of the 1990s, despite significant shifts in technology and global demand. Sri Lanka must diversify beyond tourism, remittances, and traditional exports such as garments and tea, and more into sectors such as information technology, professional services, logistics, renewable energy and value-added agriculture. Diversifying export markets too should be on the high priority list. It is encouraging to note that the National Export Development Plan 2026-2030 heavily emphasises export product diversification and export market diversification. So, the next step is to execute that plan diligently.

The Economic Transformation Act, No. 45 of 2024 identifies export diversification, foreign direct investment and export competitiveness as central pillars of Sri Lanka’s economic transformation strategy. Achieving this transformation requires effective execution of reforms in customs procedures, logistics, trade facilitation (including the National Single Window), reducing trade costs and elimination of red tape, investment approvals and streamlining investment processes, digital regulation, improving productivity, expanding market access, and integrating local firms into regional and global value chains. Further, reducing tariff and non-tariff barriers and phasing out para tariffs, would help increase exports and attract export-oriented FDI.

Investment climate reforms

Investors require policy stability, contract enforcement, transparent regulation and protection from corruption. Transparent, consistent and predictable policies are especially important because frequent policy reversals in taxation, trade, and import controls have historically undermined investor trust.

Strengthening governance

Weak institutional quality and governance failures were major contributors to Sri Lanka’s 2022 economic crisis. Investors require confidence that contracts will be enforced fairly and that public institutions operate transparently. The IMF has repeatedly stressed the importance of governance reforms, improved public financial management, and stronger fiscal discipline in restoring economic credibility. Anti-corruption frameworks, judicial independence, and transparent procurement systems would improve Sri Lanka’s international reputation and attract higher-quality investments. [IMF (2025) Sri Lanka: Fourth Review under the Extended Fund Facility Arrangement].

Conclusion

Temasek Holdings in Singapore and Khazanah Nasional Berhad in Malaysia were established to hold and manage government investments/enterprises. For countries such as Sri Lanka, the key takeaway is not simply to establish a state holding company, but to create institutions that are insulated from political interference, managed by competent professionals, and focused on long-term value creation.

Land reform should be pursued based on establishing secure property rights, digital land administration, climate-resilient land use and investment facilitation, and removing constraints on land leasing and consolidation.

Increasing female labour force participation requires among other things, a comprehensive policy approach involving childcare support, flexible employment arrangements, investment in STEM education and industry-aligned skills training for women, and better transportation.

Trade and export-oriented reforms, investment climate reforms, strengthening governance, and reducing corruption are also essential reforms that need to be implemented.

The implementation of economic reforms with a sense of urgency is vital for sustained long-term development of Sri Lanka. The political will to implement these reforms will be key in determining the successful execution of the reforms.

The Sri Lanka Shippers’ Council (SLSC), the apex body representing Sri Lanka’s importers and exporters, marked its 60th anniversary at its 56th Annual General Meeting held on 10 July 2026 at Shangri-La Colombo, reaffirming its commitment to strengthening Sri Lanka’s trade competitiveness through improved logistics, trade facilitation, and public-private collaboration.

The event was attended by Australian High Commissioner to Sri Lanka Matthew Duckworth as Chief Guest, with Hayleys PLC Chairman Mohan Pandithage attending as Guest of Honour. The gathering brought together senior representatives from Government institutions, trade associations, the logistics and shipping sectors, development partners, and members of the Council.

Trisherman Frink was re-elected Chairman of the Sri Lanka Shippers’ Council for a second consecutive term. Addressing the gathering, he reflected on the Council’s six decades of service as the collective voice of Sri Lankan shippers and reaffirmed its commitment to improving the country’s trading environment through constructive engagement with policymakers and industry stakeholders.

Highlighting the Council’s vision of enhancing competitiveness by eliminating hidden logistics costs, Frink noted that unnecessary delays, inefficient procedures, avoidable surcharges, and outdated regulations continue to undermine the competitiveness of Sri Lankan businesses. He stressed the importance of greater efficiency, digitalisation, and collaboration in ensuring Sri Lanka remains competitive in global trade.

Reviewing the Council’s work over the past year, he highlighted its continued engagement with key Government agencies including Sri Lanka Customs, the Sri Lanka Ports Authority, the Board of Investment of Sri Lanka, the Merchant Shipping Secretariat, the Export Development Board, Airport and Aviation Services (Sri Lanka), and international development partners, to advance trade facilitation and improve the country’s logistics ecosystem. He also noted the Council’s active participation in the Asian Shippers Alliance and the Global Shippers Alliance, strengthening international cooperation and ensuring Sri Lanka’s interests are represented in global trade discussions.

Looking ahead, Frink said the Council will continue to advocate for policies that improve trade competitiveness, accelerate digital trade facilitation, remove unnecessary logistics barriers, and promote international best practices across the sector.

He expressed appreciation to all sponsors – Gold Sponsors – Abanchy Ceylon, and Ocean Network Express Lanka, Silver Sponsors – Hayleys Advantis, Ansell Lanka, MAC Holdings, Scanwell Logistics Colombo, and Foreway Logistics, and E-Banner Sponsors – David Pieris Logistics and SCS Express, with special mention of the Preferred Terminal Operator – South Asia Gateway Terminals (Private) Limited

Representing 17 leading trade associations, the Sri Lanka Shippers’ Council continues to advocate for policy reforms, lower logistics costs, improved trade facilitation, and a more commpetitive environment for Sri Lanka’s import and export sectors.

Sri Lanka’s packaging industry is undergoing significant change as businesses face growing demands for sustainability, resource efficiency, innovation, technology and compliance with international market requirements.

LANKAPAK 2026, Sri Lanka’s premier international packaging exhibition, will bring together leading industry stakeholder from Sri Lanka and overseas from 23 to 25 October 2026 at the Sirimavo Bandaranaike Memorial Exhibition Centre (SBMEC), BMICH, Colombo.

Organised by the Sri Lanka Institute of Packaging (SLIP) in collaboration with CDC Events, the 27th edition of LANKAPAK will feature more than 160 exhibition stalls representing over 80 companies from Sri Lanka and overseas, including participants from China, India, Pakistan, Maldives and other South Asian countries.

LANKAPAK 2026 comes at an important time for the packaging sector, as global markets increasingly focus on circularity, waste reduction, recyclability, material efficiency and sustainable production. Packaging is no longer viewed simply as a means of protecting and presenting a product; it has become an important factor in manufacturing efficiency, product development, brand value and export competitiveness.

The exhibition will showcase the latest developments across the packaging value chain, including packaging machinery, processing technologies, printing, plastics, paper, labelling, sustainable packaging, smart packaging and innovative materials. The event will provide businesses with opportunities to explore technologies and solutions that can improve productivity, reduce material and production waste, enhance product quality and respond to changing customer and regulatory requirements.

The development of a competitive packaging industry is closely linked to Sri Lanka’s export ambitions. International buyers increasingly expect products to meet specific packaging, safety, quality and sustainability standards. Strong packaging capabilities can therefore help Sri Lankan manufacturers and exporters improve their market readiness and compete more effectively in regional and international markets.

LANKAPAK 2026 will connect Sri Lankan manufacturers, exporters, SMEs and entrepreneurs with international technology providers, suppliers, buyers and industry professionals, creating opportunities to discover new solutions, develop business partnerships and expand into new markets.

Held concurrently with the exhibition on 23 and 24 October, the SLIP Annual Packaging Congress 2026 will provide a dedicated platform for industry leaders, academics, policymakers and professionals to discuss key developments shaping the future of packaging.

Under the theme ‘Rewriting Packaging in the New Global Economic Landscape,’ the Congress will focus on sustainability, innovation, emerging technologies, changing global market requirements and the role of packaging in strengthening business and export competitiveness.

Another key feature will be the Packaging Clinic, which will provide practical guidance to businesses on packaging design, material selection, standards, product development, sustainability and export readiness. The initiative will be particularly valuable for SMEs and entrepreneurs seeking expert advice to improve their packaging solutions and prepare their products for wider markets.

The concurrent program will also include Daily Tech Forum sessions covering emerging technologies, innovative materials, global trends and key developments within the packaging industry.

LANKAPAK 2026 also reflects the longstanding contribution of the Sri Lanka Institute of Packaging, which has played a key role in developing Sri Lanka’s packaging sector for more than 50 years. Through education and professional development, technical training, industry advocacy, exhibitions, awards and international engagement, SLIP continues to promote knowledge, innovation and higher standards across the packaging industry.

Sri Lanka Institute of Packaging President Nishan Perera said: ‘LANKAPAK 2026 is more than an exhibition; it is an important platform for the continued development of Sri Lanka’s packaging industry. Our focus is on connecting local businesses, particularly manufacturers, exporters and SMEs, with the technologies, knowledge and partnerships they need to grow and compete. As sustainability, circularity and new technologies reshape packaging globally, it is important that Sri Lankan industry is equipped to respond to these changes and the opportunities they create.’

The continued support of leading industry partners further demonstrates the importance of LANKAPAK as a platform for the sector. KWO Printing Needs Ltd., joins as the Principal Sponsor, while Polydime Plastics Ltd., is the Platinum Sponsor. Petro Packaging Ltd., and Advanced Printing Technologies Ltd., are Gold Sponsors, with FMJ Holdings and CMC Engineering Export GmbH supporting the exhibition as Silver Sponsors.

KWO Printing Needs Ltd., Managing Director, Principal Sponsor Kumar Welengoda said: ‘As Principal Sponsor of LANKAPAK 2026, KWO Printing Needs Ltd., is proud to support a premier platform that advances innovation and excellence within Sri Lanka’s packaging industry. We commend the organisers for their dedication and extend our sincere best wishes for the success of the exhibition.’

Polydime International Ltd., Director Platinum Sponsor Johann Tranchell said: ‘Through the Lankapack exhibitions the Polydime Group has been able to deliver innovative, sustainable packaging solutions that combine performance, quality and technology-helping customers protect their products, strengthen brands and build a better future.’

The SLIP Annual Packaging Congress is proudly supported by Diamond Sponsor – Snackings Ltd., and Gold Sponsor – Polymer Colour Ltd.

LANKAPAK 2026 is expected to create valuable opportunities for Industry professionals, manufacturers, exporters, SMEs, entrepreneurs and other stakeholders are invited to visit LANKAPAK 2026 and take advantage of the exhibition, Congress, Packaging Clinic and technical knowledge-sharing programs taking place across the three-day event.

A recent Pew Research Center survey of attitudes towards India across 36 countries found that Sri Lanka had the most favourable view of its giant neighbour, with 79% of respondents in our country expressing a positive opinion of India. This is a striking change from the bitterness that characterised much of the relationship in the 1980s. India was not merely viewed negatively but was seen by many as an aggressor. Sinhalese and Tamil communities, for different reasons and at different times, came to resent India’s interventions in Sri Lanka. The arrival of the Indian Peace Keeping Force, following the Indo-Sri Lanka Accord, became deeply controversial, while the infamous ‘parippu drop’, seen as a humiliating violation of Sri Lanka’s sovereignty and an intervention that offered the embattled LTTE leadership a lifeline, will no doubt remain the nadir of the relationship.

Much has changed since then, and fortunately so. The wounds have not disappeared entirely, but the political and emotional landscape has evolved. India and Sri Lanka today have vastly greater economic, cultural and people-to-people connections. The Pew finding also demonstrates that ordinary Sri Lankans are not prisoners of the resentments of the past, nor are they victims of machinations by those who foment anti-Indian, nationalist narratives for petty political gain.

The challenge now is to convert this goodwill between two peoples into a stronger and more durable political relationship between two sovereign states.

That does not mean ignoring legitimate disagreements. One of the most persistent irritants is the problem of Indian fishermen entering Sri Lankan waters, particularly in the northern and eastern seas. Their activities have significantly damaged marine resources and threaten the livelihoods of Sri Lankan fishing communities. For years, the two governments have failed to resolve this issue, leading to excessively emotive and disruptive political rhetoric in Tamil Nadu and, at times, even at the Centre over Katchatheevu. Sri Lanka should be clear and firm about its sovereignty while avoiding inflammatory rhetoric of its own. The issue is best handled through established diplomatic channels rather than electoral politics.

There is, however, a much larger relationship waiting to be built, with trade at its centre. In this regard, Sri Lanka’s own fears of competition have hindered its ability to leverage the once-in-a-generation rise of India by integrating itself more deeply into its neighbour’s supply chains. The Free Trade Agreement, signed in 1998 and entered into force in 2000, remains underutilised by Sri Lanka, while the much more ambitious Comprehensive Economic Partnership Agreement has stalled, in part because of the vested interests of particular industries and individuals on the Sri Lankan side.

Energy is another area where cooperation could be transformative, yet progress has been delayed for many years. Whether it is grid connectivity, the joint development of the Trincomalee Oil Tank Farm or investment in the renewable energy sector, projects that could have delivered significant benefits to both countries have remained stalled for nearly two decades. Such projects must, of course, be transparent and commercially sound, and they must not become opportunities for cronies to make a quick buck. But they also need to be expedited so that both countries can reap the benefits of their mutual economic growth.

Few countries in the world currently hold such a favourable view of India as Sri Lanka does. That goodwill is a precious diplomatic asset. Colombo and New Delhi should have the confidence to build upon it, manage their disagreements honestly and pursue a relationship based not on fear or dependence, but on mutual respect, sovereign equality and shared prosperity.

In a rare display of prudence in the diplomatic sphere, the administration of President Anura Kumara Dissanayake has chosen an ideal diplomat to lead Sri Lanka’s mission in Delhi. This is a rare opportunity to think big and take this vital relationship to a level that reflects the sentiments and aspirations of the two peoples.

The Cabinet of Ministers has approved the transfer of responsibility for planning, conducting geotechnical assessments and managing the procurement process for the urgent reconstruction project at the National Institute of Fundamental Studies (NIFS) in Hanthana, Kandy, to the National Building Research Organisation (NBRO) on a direct contract basis.

Addressing the weekly post-Cabinet meeting media briefing recently, Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said the decision to entrust the planning, technical assessments and procurement management to the NBRO is expected to facilitate the expedited implementation of the necessary measures and restore the safety and stability of the NIFS premises.

The estimated cost of the reconstruction and stabilisation project is around Rs. 250 million.

The proposed works include the construction of a protective embankment and other necessary measures to stabilise the damaged area and safeguard the laboratory facilities and surrounding properties.

The NIFS, established under the National Institute of Fundamental Studies Act No. 55 of 1981, is a premier national research institution dedicated to conducting basic scientific research in Sri Lanka and contributing to the development of the country’s scientific human capital.

The decision follows serious damage caused by a landslide that occurred in and around the institute’s premises following the heavy rainfall associated with Cyclone Ditwah, which struck the island in November 2025.

The landslide has significantly threatened the structural stability of the institute’s main laboratory building complex. It has also created serious risks to the safety of nearby residents and their properties.

Following the incident, the NBRO conducted geotechnical and structural assessments of the affected area. Based on its findings, the organisation recommended that urgent reconstruction and stabilisation measures be implemented to prevent further damage and ensure the safety of the site.

People’s Bank continued its strong growth momentum during the six months ended 30 June 2026, delivering robust profitability supported by sustained core banking performance, improved margins, and disciplined financial management.

The bank recorded a standalone Profit Before Tax (PBT) of Rs. 32.6 billion for the period, together with a record Profit After Tax (PAT) of Rs. 20.5 billion, reflecting the continued strengthening of its earnings capacity and financial position despite an evolving global and domestic economic environment.

The strong profitability was underpinned by broad-based growth across the bank’s core income streams. Total operating income increased by 17.7% to Rs. 95.2 billion, compared with Rs. 80.9 billion in the corresponding period of the previous year, while net interest income grew by 18.9% to Rs. 82.4 billion, from Rs. 69.3 billion.

The bank also recorded a further improvement in its Net Interest Margin (NIM), which increased to 4.4% from 4.1%, reflecting effective asset and liability repricing and disciplined Balance Sheet management. These results demonstrate the bank’s ability to translate sustained business growth into stronger earnings while maintaining a prudent approach to credit and risk management.

Strong business growth supports earnings momentum

The bank’s Balance Sheet continued to demonstrate steady expansion and financial stability, with total assets stabilising at Rs. 3.8 trillion.

Significantly, gross loans and advances surpassed the Rs. 2 trillion milestone for the first time, reaching Rs. 2.1 trillion. The achievement reflects continued momentum in the bank’s core lending activities and its ability to expand its business while maintaining a stable overall financial position.

This combination of growing lending activity, stronger core income generation, and improving margins has provided a solid foundation for the bank’s continued profitability and reinforces the positive growth trajectory established across its key business areas.

Stronger capital, liquidity and asset quality

The bank’s profitability and prudent Balance Sheet management continued to strengthen its capital and liquidity position during the first half of 2026.

The Total Capital Adequacy Ratio improved to 18.2% as at 30 June 2026, compared with 17.9% at the end of the first quarter and 16.5% at the end of 2025, remaining comfortably above the regulatory minimum. The bank’s Tier I Capital Adequacy Ratio stood at 12.7%.

Liquidity also remained robust, with the All Currency Liquidity Coverage Ratio at 212.3% and the Rupee Liquidity Coverage Ratio at 255.9%, reflecting strong liquidity buffers and continued financial resilience.

The improvement in these key asset-quality indicators, achieved alongside sustained loan portfolio growth, reflects enhanced recovery efforts, prudent credit-risk management, and the bank’s continued focus on maintaining a resilient Balance Sheet.

Group profitability maintains strong upward momentum

At Group level, People’s Bank continued to record strong growth during 1H 2026, supported by healthy core banking expansion, improved margins, and disciplined cost and risk management.

The Group reported a PBT of Rs. 37.4 billion, compared with Rs. 31 billion in the corresponding period of the previous year, representing 20.6% growth.

The Group’s Balance Sheet stabilised with total assets at Rs. 4.1 trillion, while gross loans and advances increased to Rs. 2.4 trillion, reinforcing its strengthened scale and business growth across key segments.

Group net interest income increased significantly to Rs. 97 billion from Rs. 79 billion, recording 22.9% growth, supported by effective Balance Sheet repricing and sustained lending activity.

The Group also recorded an improvement in the NIM to 4.8% from 4.4%, reflecting efficient asset-liability management and improved yields on interest-earning assets.

Overall, the Group maintained strong operational momentum and financial resilience during the period, further reinforcing its strategic position as one of the country’s leading financial institutions.

Reflecting on the bank’s performance during 1H 2026, Chairman Prof. Narada Fernando said that People’s Bank has continued to demonstrate strength, resilience, and financial stability despite a complex global environment shaped by geopolitical developments and persistent economic uncertainties.

He noted that the bank’s performance is underpinned by strong financial fundamentals, sound governance practices, and a prudent risk-management framework, enabling it to navigate prevailing challenges while maintaining positive momentum across key financial indicators.

The Chairman also reaffirmed People’s Bank’s commitment to supporting the country’s economic priorities and contributing to the ongoing economic recovery. He emphasised that the bank’s continued role in facilitating economic activity and strengthening financial inclusion remains central to its purpose of fostering sustainable and inclusive growth, while creating long-term value for stakeholders and contributing to the country’s development.

Chief Executive Officer/General Manager Clive Fonseka highlighted the bank’s continued resilience and strong underlying performance amid a dynamic global and domestic environment.

He noted that the bank’s robust core income generation, improved margins, strengthened asset quality, and stable Balance Sheet position reflect the effectiveness of its strategic focus and disciplined financial management, enabling People’s Bank to maintain positive momentum while responding to evolving challenges.

Fonseka further emphasised that the bank’s strong capital and liquidity position, supported by prudent risk-management practices, provides a solid foundation for sustainable growth and continued financial resilience.

Ongoing investments in digital banking, customer experience, operational efficiency, and inclusive financial solutions are also expected to further strengthen the bank’s competitiveness and enhance the value delivered to customers.

Fonseka also highlighted the achievement of ISO 22301:2019 certification as a significant milestone for People’s Bank, reflecting its unwavering commitment to operational resilience, service continuity, and customer trust.

As the first State-owned bank in Sri Lanka to receive this prestigious certification, the achievement underscores People’s Bank’s commitment to maintaining critical banking services and ensuring business continuity in the face of unforeseen disruptions.

He reaffirmed that People’s Bank remains committed to strengthening its role as a trusted financial partner while sustaining its positive financial momentum and contributing to Sri Lanka’s sustainable economic progress.

Serena Williams will team up with Carlos Alcaraz to create a powerhouse mixed doubles pair on her return to the US Open.

The US Tennis Association announced on Saturday that Williams and Alcaraz had been given a wild card into the tournament. The mixed doubles main draw begins on Tuesday, with the winning team sharing $1 million.

It will be Williams’s first time playing at the US Open since 2022. The 23-time Grand Slam singles champion returned to tennis this summer.

‘Let’s gooooo!’ Alcaraz posted on X, with a fire emoji and tagging Williams.

Williams is not planning to play singles in New York. The USTA had been holding one women’s wild card, presumably in case Williams wanted it. However, the tournament announced on Saturday that it had been given to American Sofia Kenin, the 2020 Australian Open champion.

Williams played singles at Wimbledon but sustained a knee injury in her first-round loss. She played doubles with older sister Venus at the Cincinnati Open, and they could still opt to play together at the US Open.

Alcaraz announced this week he would return to defend his US Open singles title after being sidelined since April with a right wrist injury.

Serena Williams won a mixed doubles title at the US Open even before winning any of her six singles titles there. She teamed for the 1998 championship with Max Mirnyi, who now works with top-ranked woman Aryna Sabalenka.

The mixed doubles tournament is far different now, as the USTA revamped it last year to make it a two-day, 16-team event it hoped would draw top singles players.

The Government of Sri Lanka has secured a USD 200 million policy-based loan from the Asian Development Bank (ADB) to support the Trade, Investment and Industry Development Program – Subprogram 1.

As the apex professional body representing the legal profession in Sri Lanka, the Bar Association of Sri Lanka (BASL) represents over 26,000 legal professionals across 93 regional branches, across the country. In keeping with its commitment to continuous professional development, BASL began an Online Certificate Course in Human Resource Management yesterday.

The course will be conducted every Wednesday from 3 p.m. to 5 p.m. over a period of 12 weeks and is open to BASL members, non-members, legal apprentices, and law students.

BASL President Rajeev Amarasuriya, stated that the certificate course recognises the increasingly important role that Attorneys-at-Law play in the field of Human Resource Management. He noted that many senior human resource professionals are themselves Attorneys-at-Law, reflecting the strong career opportunities available to legal professionals in the HR and employment sphere. The programme is therefore designed to equip participants with both the legal knowledge and practical understanding required to effectively navigate contemporary workplace and employment-related matters, while highlighting Human Resource Management and Employment Law as an important area of professional development and career advancement for Attorneys-at-Law.

The sessions will be conducted by a distinguished panel of legal experts and senior practitioners, including Geoffrey Alagaratnam, PC, Uditha Egalahewa, PC, Mohamed Adamaly, PC, Association of HR Professionals Sri Lanka President Thushara Jayawardana, AAL, Manoli Jinadasa, AAL, EFC Former Director General / Chief Executive Officer Kanishka Weerasinghe, AAL, Hayleys Group Group Head – HR and Legal Darshi Talpahewa, AAL.

The Committee on Public Finance (CoPF) has exposed a series of unresolved technical and implementation roadblocks in the Inland Revenue Department’s (IRD) planned digital point-of-sale (POS) and real-time Value Added Tax (VAT) invoicing system, with officials acknowledging that full onboarding is expected to take two years despite the Government’s push to accelerate tax digitalisation.

The scrutiny revealed that key elements required for an islandwide rollout, including final software and hardware requirements, compatible devices, integration with existing business systems, engagement with POS service providers, security safeguards and arrangements for smaller businesses, remain under development or discussion.

The IRD told the CoPF, Chaired by Rauff Hakeem as stand-in, that it could issue the required Gazette notification only after receiving the POS specifications covering software and hardware requirements from the Digital Economy Ministry. Once the Gazette is issued, VAT-registered taxpayers would have three months to comply, including obtaining the required POS facility and issuing invoices through it.

However, during detailed questioning, CoPF members challenged whether the underlying system was sufficiently advanced for that statutory timetable to translate into practical implementation.

A representative involved in the digital work told the Committee that requirements were still needed from the Finance Ministry and revenue authorities before software requirements could be settled and devices matching the required technology and price parameters identified.

MP Ravi Karunanayake argued that a process still at the basic stakeholder and requirements stage could take two years to implement.

The IRD subsequently outlined its current approach, under which it is working with the Digital Economy Ministry and GovTech and beginning implementation at a minimum level before moving towards a full e-invoicing system. An IRD official said the Department expected to onboard all taxpayers over a two-year period.

The exchange highlighted a distinction between the pilots already under way and the considerably broader system envisaged by CoPF: real-time electronic capture of VAT transactions across the tax base, including wholesale and retail businesses.

According to figures presented to the Committee, Sri Lanka had 36,656 registered VAT taxpayers as at 30 June 2026, excluding 371 taxpayers registered for VAT on financial services. The IRD also put the number of registered corporate taxpayers at 139,000.

The CoPF questioned why digitalisation was proceeding through a relatively small number of entities rather than using the existing VAT-registered population as the starting base.

The IRD said 15 apparel-sector companies and five tea exporters had been onboarded, while 380 tea-producing entities were connected through tea brokers. Work was in progress to onboard five wholesale and retail companies, 27 other export-oriented companies and 170 other VAT-registered companies.

Committee members drew particular attention to the wholesale and retail sector, arguing that manufacturers and exporters were already comparatively visible to the tax administration, while a larger revenue gap could lie further down the transaction chain.

The CoPF also questioned whether simply requiring a POS machine would achieve the intended objective unless every device could be securely identified, tied to a location and connected to the IRD for real-time transmission.

Karunanayake said the objective should be an online VAT system rather than a POS arrangement that still allowed taxpayers discretion over which transactions were entered. He cited information before the Committee that Colombo had about 2,400 restaurants but only 125 paying VAT, arguing that the tax administration needed to broaden the base rather than concentrate enforcement on taxpayers already within the system.

The IRD said its ultimate objective was real-time invoice-data collection and that minimum standards would have to apply across businesses using different systems, ranging from enterprise resource planning systems to taxpayers still issuing invoices manually.

Officials said the Department had already piloted application programming interface (API) integration to enable businesses to transmit invoice records directly to the IRD system in real time. The initial work involved exporters, including apparel companies and tea-sector businesses, before expansion towards retail.

But the CoPF repeatedly pressed officials on how the system would deal with the less sophisticated segment of the economy, including businesses without established ERP systems, reliable connectivity or the technical capacity of larger companies.

The Committee also raised the need for offline transaction recording during electricity or connectivity failures, with officials indicating that offline invoice-recording capability would form part of the minimum device specifications.

Another unresolved issue was the ecosystem of private POS and software providers that would ultimately have to connect businesses to the IRD.

CoPF members urged the authorities to begin consultations with service providers early, warning that they could otherwise become an implementation bottleneck. They noted that businesses already use numerous POS, accounting and inventory systems and that providers would need sufficient time to adapt their products to IRD requirements.

Officials said GovTech would handle stakeholder consultation and that authorities had also consulted taxpayers and industry representatives.

The Digital Economy Ministry side also pointed to security and load-testing requirements for an island-wide rollout. Officials said the legitimacy of devices, attempts to circumvent registration and cyber-security risks would have to be addressed, including through the Sri Lanka Computer Emergency Readiness Team (SLCERT). The existing IRD system would also require updating.

The CoPF additionally highlighted the cost burden on smaller businesses that may have to purchase equipment or upgrade their systems. The IRD said concessions were still being discussed, including possible tax treatment for the acquisition of equipment, but no final incentive structure was presented to the Committee.

The Committee urged the authorities to consult small retailers and their associations rather than limiting engagement to larger taxpayers, noting that compliance costs could have a disproportionate impact on smaller enterprises.

The CoPF also called for the eventual system to be ‘faceless,’ arguing that reducing discretionary human intervention was essential both for revenue collection and to limit leakage.

The Committee also stressed the need for a public awareness program before mandatory implementation, particularly because businesses would have to invest in equipment and alter invoicing practices.