Category: Daily Financial Times

Bank of Ceylon (BOC) is to raise up to Rs. 10 billion through a Basel III-compliant Additional Tier 1 (AT1) Bond issue, as the State-owned lender seeks to strengthen its capital adequacy, liquidity position, and asset base.

The bank’s Board of Directors has approved an initial issue of up to 50 million unsecured, subordinated, and perpetual AT1 Bonds to raise Rs. 5 billion, with an option to issue a further 50 million Bonds at the bank’s discretion in the event of oversubscription.

The Bonds, priced at Rs. 100 each, will be unlisted and will not be listed on the Colombo Stock Exchange (CSE) or any other exchange. The issue has been rated ‘AA-‘ (Stable) by Lanka Rating Agency Ltd.

The floating-rate Bonds will carry an annual interest rate equivalent to the 12-month net Treasury Bill rate plus 2% per annum, with interest payable annually.

The issue opens today (20) and is scheduled to close on 31 December 2026 or earlier if the maximum 100 million Bonds are fully subscribed.

If the initial 50 million Bonds are fully subscribed and BOC decides to exercise the option to issue a further 50 million, the subscription list will close at 4:30 p.m. on the market day on which the additional tranche is fully subscribed. The AT1 Bonds may also be issued in one or more tranches.

BOC said one objective of the issue was to increase its Tier 1 capital and strengthen its Capital Adequacy Ratio (CAR). The bank reported a total CAR of 17.22% as at 30 June 2026, against the 15% minimum required under Central Bank of Sri Lanka (CBSL) regulations.

According to the bank, the CAR is expected to rise to 17.45% following a Rs. 5 billion AT1 Bond issue and to 17.69% if the full Rs. 10 billion is raised.

The proceeds are also intended to minimise and manage gap exposure in the bank’s asset and liability portfolios, strengthen liquidity, and increase the asset base.

The Bonds are perpetual and therefore have no fixed maturity. However, BOC may exercise a call option at its discretion after five years from the date of issue, subject to CBSL approval and other regulatory conditions.

The issue is restricted to qualified investors. The minimum subscription is Rs. 1 million for a qualified investor, while an individual qualified investor is required to subscribe at least Rs. 50 million. Subsequent applications above the minimum must be in multiples of Rs. 1 million.

Eligible investors include licensed commercial and specialised banks, development and specialised savings banks, housing banks, co-operative banks and unions, registered finance and finance leasing companies, insurers, licensed securities dealers or brokers, regulated pension and pooled funds, companies with net assets of at least Rs. 500 million, and individuals investing at least Rs. 50 million.

The issue does not have a trustee. BOC said Bond certificates would be issued to investors under the common seal of the bank with the signatures of a Director and the General Manager/CEO.

The bank has obtained approval from the Securities and Exchange Commission of Sri Lanka for the proposed AT1 Bond issue.

Lakshan Madurasinghe has become the country’s first and only Certified WHY Coach, accredited to facilitate the internationally recognised WHY Discovery process developed by Simon Sinek’s WHY School.

With over 25 years of experience and exposure spanning the corporate, development and public sectors, Lakshan has built a distinguished career helping organisations create legacy, navigate crisis, lead transformation, strengthen leadership, drive reputation, stakeholder engagement and deliver lasting impact.

His professional journey has included leadership roles with The Coca-Cola Company across Sri Lanka, Nepal, Bhutan and the Maldives, and serving as President of the American Chamber of Commerce in Sri Lanka and Habitat for Humanity Sri Lanka, Board Director of the Board of Investment Sri Lanka, and leading numerous initiatives in corporate affairs, strategic corporate sustainability and communications, regulatory affairs, crisis management, policy advocacy and in creating community impact.

Today, he brings that extensive leadership experience together with one of the world’s most recognised purpose-discovery methodologies, providing Sri Lankan individuals, leaders, and entrepreneurs with access to a globally proven framework for uncovering the deeper purpose that drives performance, leadership and fulfilment.

The WHY Discovery process is built around a simple yet powerful principle popularised by Simon Sinek: The WHY is your deep-seated purpose, cause and belief. It’s an articulation of you, the best part of you. Unlike job titles, a WHY represents the deeper cause that naturally motivates an individual. Understanding this purpose can help people make better decisions, communicate more authentically, build stronger relationships and lead with greater clarity and confidence.

Lakshan Madurasinghe said: ‘Purpose isn’t a privilege, it’s a right. Every person deserves to wake up knowing their WHY. Your WHY is inspirational, not aspirational. It isn’t who you want to be, it is who you truly are and is the best part of you.’

‘Throughout my career, whether working with multinational corporations, government institutions, entrepreneurs or community organisations, I have observed that the most effective leaders are those who understand what truly drives them. The WHY Discovery process gives people the language and clarity to articulate that purpose. When individuals understand their WHY, they are able to make better decisions, communicate more authentically, build stronger relationships and lead with greater confidence and consistency,’ he added.

For Lakshan, the WHY methodology is not simply a coaching framework but a practical leadership tool that aligns closely with lessons gained throughout his career exposure. Having led regional teams, managed complex stakeholder environments, built public-private partnerships and guided organisations through periods of transformation and crisis, he has witnessed firsthand how purpose-driven leadership influences culture, engagement, resilience and ultimately performance.

The methodology has applications across a wide range of audiences, including senior executives, emerging leaders, entrepreneurs, founders, professionals navigating career transitions and teams seeking stronger alignment around a shared purpose.

Individuals who undertake the WHY Discovery process will undoubtedly gain greater self-awareness, improved confidence, stronger decision-making capabilities and a clearer sense of direction. Leaders benefit from enhanced authenticity, stronger communication and increased trust among teams. Participants typically complete the process with a clearly articulated WHY statement with attached HOWs, a deeper understanding of what motivates them and practical insights that can guide future personal and professional decisions.

Alliance Finance Company PLC (AFC), Sri Lanka’s pioneering sustainable finance institution, reaffirmed its position as one of the country’s most outstanding corporate organizations by securing three prestigious accolades at the National Business Excellence Awards (NBEA) 2026, organized by the National Chamber of Commerce of Sri Lanka.

Demonstrating excellence across multiple dimensions of business performance, AFC was honoured with the Gold Award for Excellence in Business and Financial Results in the Extra-Large Category, Gold Award for Excellence in Corporate Governance and Strategy, and was named Runner-Up in the Non-Banking Financial Sector.

These distinguished recognitions reflect AFC’s unwavering commitment to sustainable growth, sound corporate governance, strategic leadership and strong financial performance, reinforcing the Company’s standing as Sri Lanka’s leading sustainable finance Institution.

Commenting on the achievement, Mr. Romani de Silva, Deputy Chairman/Managing Director of Alliance Finance Company PLC, said, ‘These awards are a testament to the dedication and passion of our entire team, whose commitment continues to drive our purpose of creating sustainable value for all stakeholders through our powerful purpose of existence of making the world a better place through sustainable finance. At Alliance Finance, excellence is measured not only by financial success but also by the positive impact we create for society, the environment and the economy. We are honoured that our journey continues to receive national recognition.’

The National Business Excellence Awards are among Sri Lanka’s most respected corporate accolades, recognizing organizations that demonstrate outstanding performance across key business disciplines, including leadership, governance, financial performance, sustainability, innovation and operational excellence.

For seven decades, Alliance Finance has consistently redefined the role of finance by integrating the Triple Bottom Line philosophy of People, Planet and Profit into its business model. Through pioneering sustainable finance initiatives, biodiversity conservation, social impact investments and innovative financial solutions, the Company continues to create lasting value while contributing meaningfully to national development.

These latest accolades further strengthen AFC’s growing portfolio of national and international recognitions and reaffirm its commitment to delivering sustainable financial excellence while creating a more responsible society, a better planet and a stronger nation.

The private sector yesterday welcomed the launch of Sri Lanka’s new interim tourism promotion, but called for rapid expansion to more source markets, stronger partnerships with tour operators and airlines, and rigorous monitoring of campaign performance.

Speaking at the launch event yesterday, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nalin Jayasundera described the initiative as ‘the need of the hour,’ noting the industry had waited too long for a coordinated international marketing campaign.

‘Of course, there was a slight delay, but finally it’s happening and we are in the right direction,’ he said.

Jayasundera urged the Government to expand the campaign from its initial six markets to at least 10 key source markets without waiting until next year, arguing that Sri Lanka needed to maintain momentum across its major tourism-generating countries.

He also stressed the need for joint marketing with international tour operators, particularly major European operators that promote multiple destinations and therefore require stronger incentives to position Sri Lanka in their programs.

‘Sri Lanka is not the only destination. We need to find a mechanism to work together with tour operators and carry out joint marketing,’ Jayasundera said.

Airlines, he added, would be equally critical to the success of the campaign. With several new carriers expected to begin operations to Sri Lanka, he called for the Government and industry to support their marketing efforts, while encouraging them to increase frequencies and capacity over time.

He said Sri Lanka should aim for 5 million tourist arrivals by 2030 and establish itself as a year-round destination, while targeting tourism revenue of at least $ 8 billion by then, with the potential to reach $ 10 billion if the right policies and coordinated marketing were implemented.

‘The unity is the key to achieve any goal,’ Jayasundera said, calling for close coordination between the Tourism Ministry, Sri Lanka Tourism Promotion Bureau (SLTPB), and the private sector.

The Hotels Association of Sri Lanka (THASL) President Asoka Hettigoda similarly welcomed the campaign, insisting the private sector had invested heavily in tourism but had long faced uncertainty over the country’s international marketing efforts.

He said THASL members had invested more than $ 1.5 billion in the sector and developed properties that had secured major international recognition.

‘Today, we are living a dream, because for the last few years, this dream has been so elusive,’ Hettigoda said, noting that investors needed stronger tourist spending, longer stays, and higher returns to sustain further investment.

Hettigoda said Sri Lanka’s wide geographical spread of tourism businesses could help distribute economic benefits more equitably, with THASL members ranging from large hotel groups to small boutique properties across the country.

He backed the campaign’s emphasis on digital marketing and the subsequent global campaign, saying Sri Lanka had a vast range of attractions and experiences to promote.

However, he cautioned that no campaign could effectively market every attraction at once and urged authorities to make strategic choices on what to promote in each market.

Hettigoda also called for greater transparency in the use of campaign funds, including regular public updates on performance.

‘It is one thing to embark on something. It is something else how to do it best,’ he said, proposing regular performance reviews showing the campaign’s impact in each market.

He suggested that authorities publish updates comparing the position of Sri Lanka before and after the campaign, assessing whether it was delivering the expected results and identifying adjustments required.

With around Rs. 5 billion earmarked for the planned global campaign, Hettigoda said close monitoring would be essential to ensure that expenditure produced measurable results.

‘We have waited all these years. We want the best outcome,’ he said.

He also urged authorities to maintain the announced timelines for the global campaign and provide greater clarity on procurement, performance monitoring, and implementation milestones.

Hettigoda said the private sector was prepared to support the initiative while providing constructive feedback to strengthen its effectiveness.

Both industry leaders stressed that the success of the campaign would ultimately depend on close cooperation between Government agencies, tourism authorities, airlines, tour operators, and the wider private sector.

The 26th Exporters’ Forum, organised by the Sri Lanka Export Development Board (EDB), was successfully held yesterday at the EDB premises, chaired by Industry and Entrepreneurship Development Minister Sunil Handunnetti.

It provided an important opportunity for exporters to present their business challenges directly to policymakers and obtain practical solutions.

Addressing the forum, Minister Handunnetti stated that the Government is providing maximum support to strengthen the country’s economy by simplifying the obstacles present in the export sector. He said that exporters’ problems are not confined to Colombo alone, and that steps are already being taken to discuss and resolve issues directly with Government institutions at the provincial and district levels.

He noted that the Government’s primary target is to increase export volume rather than merely the number of exporters. He stated that barriers preventing rural producers from taking their products to the international market are being removed by providing them with the necessary understanding of international markets, proper packaging, and technology.

Minister Handunnetti concluded by stating that everyone must work together for the country’s financial independence by simplifying policy decisions and creating an environment favourable to exporters.

Speaking at the 26th Exporters’ Forum, EDB Chairman Mangala Wijesinghe stated that, in line with the National Export Development Plan, the Government’s target is to achieve export earnings of $36 billion by the year 2030. He noted that Sri Lanka recorded a historic export value of $17.3 billion in 2025, and is pursuing a target of $19 billion for 2026. He further emphasised that the public and private sectors are working together to remove the practical and trade-related obstacles faced by exporters.

Among the issues raised by exporters, a significant number have already been referred to relevant institutions through the Export Facilitation Task Force for resolution. Priority was given to discussing and finding solutions to the remaining issues directly at this forum.

The event was also attended by Fisheries, Aquatic and Ocean Resources Minister Ramalingam Chandrasekaran, Digital Economy Deputy Minister Eranga Udesh Weeraratne, EDB Director General Erandika Dissanayake, Director of the Trade Facilitation and Trade Information Division, along with other directors, representatives of export advisory committees, exporters’ associations, chamber of commerce representatives, EDB officials, representatives of private sector companies, and officials from various Government institutions.

EDB said the 26th Exporters’ Forum served as an important occasion that introduced a new approach to Sri Lanka’s export promotion efforts and reaffirmed the Government’s commitment to facilitating international trade.

The Government is prepared to hold a referendum if the Supreme Court determines that one is required, in addition to a two-thirds parliamentary majority, to enact the proposed 22nd Amendment (22A) to the Constitution, Health and Mass Media Minister Dr. Nalinda Jayatissa said.

Speaking at a public gathering, Dr. Jayatissa said the Government would proceed based on the Supreme Court’s determination, which he said was expected by late September or October.

‘If a two-thirds majority in Parliament is required, we are prepared to proceed accordingly, and if a referendum is required, we are prepared for that as well, based on the Supreme Court’s decision,’ Dr. Jayatissa said.

He maintained that the proposed Amendment had been introduced in the public interest and said the Government would continue with the reform process.

Separately, Opposition Leader Sajith Premadasa told Parliament yesterday that the Bar Association of Sri Lanka (BASL) is expected to brief MPs today (20) on the proposed 22nd Amendment and concerns relating to vacancies in the superior courts.

Premadasa said he had initially written to the BASL President on 8 June requesting a briefing for Opposition MPs on the Amendment and the implications of not filling vacancies for judges in the superior courts.

He said a further request was made on 30 July to extend the briefing to all MPs, while the Speaker was also informed in writing.

Premadasa said the BASL subsequently confirmed that its representatives would be available to conduct the briefing today.

His explanation followed Leader of the House Bimal Rathnayake’s statement that a procedural error in organising the BASL briefing had been noted.

Premadasa invited interested MPs to attend and said the related correspondence would be tabled in Parliament and included in the Hansard.

The proposal to extend the retirement age of superior court judges by two years predates the current Government’s 22nd Amendment initiative and was first mooted a couple of years ago, when Ranil Wickremesinghe was President.

The initiative originated as a Private Member’s proposal by MP Faiszer Musthapha, now in Opposition, and was subsequently placed on Parliament’s Order Book. Musthapha had proposed increasing the retirement age of Supreme Court judges from 65 to 67 years and that of Court of Appeal judges from 63 to 65 years.

The proposal later appeared in the Parliamentary Order Book issued on 5 December 2025, before being taken up by the Government and formally presented to Parliament as part of the 22nd Amendment to the Constitution Bill.

David Pieris Automobiles Ltd., the four-wheeler sales arm of David Pieris Group of Companies, recently unveiled the all-new BAIC X3e, a fully electric crossover/SUV, at the Auto Vision Motor Show 2026 held at the BMICH, marking another significant step towards making electric mobility more accessible to Sri Lankan motorists.

Developed around the campaign platform ‘The EV That Makes Life Easy,’ the BAIC X3E has been designed to simplify the transition to electric driving by combining modern technology, everyday practicality and exceptional value.

The BAIC X3e is tailored to meet the needs of today’s drivers, offering low running costs, a practical driving range, fast charging capability, a spacious family-friendly interior, intelligent safety and driver assistance technologies and the trusted after-sales support of David Pieris Automobiles. Together, these features make electric mobility easier, more convenient and more affordable for Sri Lankan families.

The vehicle features a bold and modern crossover design, a spacious and versatile cabin, a smart digital cockpit with advanced connectivity, Level 2 driver assistance technologies, efficient electric performance, comprehensive safety features, fast charging capability and an intelligent auto parking system.

David Pieris Automobiles Director Mahesh Gunathilake said: ‘The BAIC X3e has been developed for customers who are looking to embrace electric mobility without compromising on practicality, comfort or affordability. At David Pieris Automobiles, we believe the future of mobility should be accessible to everyone and the X3e delivers exactly that. Supported by our islandwide sales and after-sales network, customers can confidently make the switch to electric with the assurance of reliable service and long-term support.’

David Pieris Automobiles has already established a comprehensive after-sales support network for BAIC customers, including genuine spare parts, scheduled maintenance, repairs and technical assistance. A fully dedicated BAIC workshop operates at Hyde Park Corner, Colombo, supported by an islandwide dealer and service network.

The flagship BAIC showroom is located on Pannipitiya Road, Battaramulla, with branches in Kurunegala, Matara, Ratnapura and Kandy, ensuring convenient access to sales and after-sales services across the country.

Orion City has announced the launch of Orion Tower II, one of the most ambitious commercial office developments to date.

Construction on Orion Tower II commenced in August 2026, with completion targeted for January 2029. This investment represents another significant milestone in Orion City’s long-term vision of creating Sri Lanka’s leading integrated business destination.

Developed in response to the growing needs of our tenant community and the increasing demand for world-class commercial office space, Orion Tower II will deliver approximately 300,000 square feet of premium Grade A office space, designed to support business expansion while further strengthening the Orion City ecosystem.

The master plan has been developed by the internationally renowned DP Architects Singapore, creating a landmark development that seamlessly integrates with Orion Tower I to provide a combined floor plate of approximately 36,000 square feet. The new tower will feature 180-degree panoramic views of Colombo, large column-free office floor plates that maximise workspace flexibility, and is being designed to achieve LEED Platinum Certification, reflecting Orion City’s commitment to sustainability, innovation, and international workplace standards.

At Orion City, our vision has always extended beyond constructing office buildings. We believe the future of work is created by environments where businesses, people, and communities can thrive together.

Over the years, Orion City has continuously invested in facilities and services that enhance the everyday workplace experience. Today, its integrated business ecosystem includes premium office infrastructure, flexible workspaces, childcare facilities, EV charging stations, enhanced food and beverage offerings, fitness and wellness amenities, hospitality services, retail conveniences, professionally managed common areas, and a growing range of lifestyle experiences designed to support both organisations and their people.

At present Orion City is home for over 100 local and multinational organisations, supporting over 10,000 professionals, and encompassing over 1 million square feet of commercial development.

Orion Development Ltd., Chief Operating Officer Milinda Wickremeratne said: ‘Orion Tower II represents a significant milestone in Orion City’s long-term vision of creating Sri Lanka’s leading integrated business destination. This development reflects our continued confidence in Sri Lanka’s future and our commitment to delivering world-class commercial infrastructure that supports business growth, attracts investment, and creates lasting value for our tenants and stakeholders.’

Head of Marketing Sudheera Bandara said: ‘Orion Tower II is far more than another office tower. It is the next chapter in Orion City’s journey of creating a connected business ecosystem where organisations can innovate, collaborate, and grow. Every aspect of this development has been carefully planned to enhance the workplace experience while reinforcing Orion City’s position as Sri Lanka’s Destination for Innovation.’

The project also represents the next phase of Orion City’s long-term expansion strategy, reinforcing its commitment to shaping the future of business in Sri Lanka while supporting multinational corporations, local enterprises, entrepreneurs, and the wider business community with internationally recognised commercial infrastructure.

Government revenue and grants rose by 27.1% year-on-year (YoY) to Rs. 2.956 trillion in the first half of 2026, achieving 55.8% of the Rs.5.3 trillion annual estimate, with motor vehicle-related collections propelling Sri Lanka Customs to become the largest contributor to tax revenue.

The performance was disclosed in the Fiscal Review Report January-June 2026 issued by the Finance, Planning and Economic Development Ministry’s Department of Fiscal Policy.

Total revenue, excluding grants, increased by 27% to Rs. 2,954.2 billion in the first six months from Rs. 2,321.7 billion in the corresponding period of 2025, mainly due to higher revenue collections from motor vehicles, according to the report.

Total revenue and grants amounted to Rs. 2,956 billion, up from Rs. 2,325.1 billion a year earlier. Against the Rs. 5,300 billion annual estimate, the Government had achieved 55.8% by end-June. Tax revenue rose by 25.9% to Rs. 2,710.6 billion, achieving 55.2% of the Rs. 4,910 billion annual estimate. Non-tax revenue increased by 43.6% to Rs.243.6 billion, equivalent to 67.7% of the Rs. 360 billion annual estimate. Grants fell by 46.4% to Rs.1.8 billion, or 6% of the Rs.30 billion annual estimate.

Income Tax accounted for 19% of actual revenue in 1H, taxes on goods and services 60%, taxes on external trade 13% and non-tax revenue 8%, according to the report.

Sri Lanka Customs emerged as the largest contributor to tax revenue during the first six months, collecting Rs. 1,290 billion and accounting for 48% of total tax revenue. The Inland Revenue Department (IRD) collected Rs. 1,248 billion and accounted for 46%, whilst the Excise Department was the third-largest contributor.

Customs achieved 58.5% of its Rs. 2,206 billion annual estimate by end-June, ahead of the IRD, which achieved 52% of its Rs. 2,401 billion target. The Excise Department collected Rs.138 billion, equivalent to 56.5% of its Rs. 245 billion annual estimate. Other collections amounted to Rs.35 billion, or 60.1% of the Rs.58 billion annual estimate.

Overall, the three agencies and other sources collected Rs. 2,711 billion in tax revenue during 1H against the Rs. 4,910 billion annual estimate, an achievement of 55.2%.

The Department of Fiscal Policy attributed Customs achieving nearly three-fifths of its annual estimate mainly to increased revenue collections from motor vehicles.

VAT on imports was Customs’ largest revenue component, increasing by 25% YoY to Rs. 443.7 billion from Rs. 354 billion in 1H 2025.

Excise Duty collected through Customs rose by 46% to Rs. 424.2 billion, with motor vehicles accounting for 63% of Customs Excise Duty during the period. Petroleum accounted for 23%, cigarettes 13% and other sources 1%.

Revenue from Excise Duty on motor vehicles more than doubled to Rs. 266.4 billion from Rs. 129.1 billion a year earlier, an increase of Rs. 137.2 billion.

Within overall Customs revenue, import VAT accounted for 34%, Excise Duty 33%, Import Duty 12%, Ports and Airports Development Levy (PAL) 7%, Special Commodity Levy (SCL) 7%, import SSCL 4% and CESS 3%.

The IRD collected Rs. 1,248 billion during the first six months, achieving 52% of its Rs. 2,401 billion annual estimate, with the Fiscal Review attributing the performance to VAT on domestic activities.

Income Tax revenue increased by 16% YoY to Rs. 568.4 billion from Rs. 488.5 billion.

VAT on domestic activities rose by 26% YoY, whilst revenue from the Social Security Contribution Levy (SSCL) on domestic activities increased by 15%.

Income Tax accounted for 45% of IRD collections during the period, whilst domestic VAT represented 44%, domestic SSCL 10% and other revenue 1%.

Within Income Tax, corporate Income Tax accounted for 55% of collections, individual Income Tax 27% and withholding tax 18%.

Overall VAT revenue, combining domestic and import collections, increased by 25% YoY to Rs. 987.6 billion from Rs. 787.3 billion in the corresponding period of 2025.

VAT was also the single largest major revenue source during 1H, with Rs. 987.6 billion collected against a Rs. 1,812 billion annual estimate, equivalent to about 55% of the full-year target.

The Excise Department collected Rs. 138 billion during 1H, achieving 56.5% of its Rs. 245 billion annual estimate.

Revenue from Excise Duty on liquor increased by 27% YoY to Rs. 137.5 billion from Rs. 108.2 billion in the corresponding period of 2025.

Liquor accounted for 99% of Excise Department collections during the period, with tobacco contributing the remaining 1%.

The revenue performance drove an improvement in the Government’s fiscal balances, with revenue growth substantially outpacing expenditure during the first half.

Total expenditure increased by 7.9% YoY to Rs. 2,946.5 billion from Rs.2,730.7 billion. This represented 39% of the Rs. 7,557 billion annual estimate.

Recurrent expenditure increased by 6.5% to Rs. 2,669.9 billion from Rs. 2,506.8 billion, reaching 45.7% of the Rs. 5,838 billion annual estimate.

Capital expenditure and net lending rose by 23.6% to Rs. 276.6 billion from Rs. 223.9 billion, but amounted to only 16.1% of the Rs. 1,719 billion annual estimate.

Interest payments declined by 2% to Rs. 1,234.6 billion from Rs. 1,264.6 billion a year earlier.

The combination of higher revenue and slower expenditure growth swung the nominal Budget balance to a Rs. 9.5 billion surplus in 1H 2026 from a Rs.405.6 billion deficit in the corresponding period of 2025.

The primary surplus increased by 45% to Rs. 1,244.1 billion from Rs. 859 billion a year earlier. The first-half primary surplus was more than three times the Rs. 360 billion primary surplus estimated for the full year, although the half-year position does not indicate the eventual year-end outturn.

The 2026 fiscal framework provides for a full-year Budget deficit of Rs. 2,257 billion.

The Department of Fiscal Policy attributed the turnaround in the Budget balance mainly to the 27% increase in Government revenue together with the rationalisation of Government expenditure.

The Sri Lanka Apparel Brands Association (SLABA) last week hosted the inaugural session of its new ‘Boardroom – Executive Leadership Series,’ bringing industry leaders together for a closed-door discussion on two questions increasingly on the minds of business owners: how to raise capital beyond conventional bank lending, and how to navigate the country’s foreign exchange regulations.

Held on 14 August 2026 at Jetwing Colombo 7, the session titled ‘Expanding Horizons: Regional Market Growth and Alternative Funding Mechanisms’ was powered by NDB Investment Bank, with EKKO, LCY, and JEZZA as gift partners, and was open exclusively to SLABA members.

The proceedings opened with a presentation by CBSL Department of Foreign Exchange Senior Assistant Director D.L. Lakmal, who offered insights into the country’s foreign exchange regulatory framework. His remarks were followed by a Q and A session, giving attendees the opportunity to raise concerns directly relevant to their own cross-border operations. With Exchange Control policy continuing to evolve, the discussion offered exporters and manufacturers a timely update on the regulatory landscape they operate within.

The second half of the session turned to the question of financing. A team from NDB Investment Bank comprising Head of Debt Capital Markets Eshani Thenuwara, Senior Vice President Sujani Perera and Associate Vice President Deshan Hettiwatte walked members through alternative capital-raising options that go beyond traditional financing instruments, aimed at businesses seeking to fund their next phase of growth without relying solely on conventional bank credit.

The session, which drew strong participation from SLABA’s membership, concluded with a high-tea and networking segment that gave attendees the chance to engage further with the speakers and with each other.

The Boardroom Series marks a shift in how SLABA is engaging its membership, moving away from broad-based networking events towards smaller, more focused sessions that place financial institutions and regulators in direct conversation with business leaders. Going by the response to this first session, it is a format apparel exporters and manufacturers are likely to welcome again.