Category: Daily Financial Times

Purpose is no longer a corporate social responsibility initiative or a marketing slogan, it has become one of the most powerful drivers of long-term business competitiveness, according to National University of Singapore (NUS) Business School Associate Professor of Marketing and Executive MBA Program Academic Director Dr. Prem Shamdasani.

Delivering a keynote on ‘Future-proofing brands: Why purpose matters more than ever’ at the Sri Lanka Brand Conclave 2026, he argued that businesses can no longer rely solely on superior products or strong brands to remain competitive as technology rapidly commoditises industries and consumer expectations undergo a profound transformation.

He urged organisations to evolve from product-centric and brand-centric business models to purpose-centric enterprises that create economic value, while simultaneously generating positive social impact and environmental stewardship.

Dr. Shamdasani stressed that purpose is not an alternative to profitability but a prerequisite for sustainable profitability, arguing that companies embedding purpose across their operations consistently outperform peers through stronger customer loyalty, greater resilience, enhanced trust and reduced business risk.

Positioning Sri Lanka as a country with significant potential to lead in purpose-led business transformation, he said while the country may not always compete on technology or scale, it can differentiate itself globally through authentic purpose-driven businesses.

‘I genuinely believe Sri Lanka has the potential to become a leader in purpose-led business transformation,’ Dr. Shamdasani said, citing his experience working with leading Sri Lankan corporates including Sri Lanka Insurance, John Keells and Aitken Spence.

Purpose becoming a business imperative

He said one of the most common questions business leaders ask when discussing sustainability, ESG and corporate purpose is simple: ‘What’s in it for us?’

Dr. Shamdasani’s answer was equally straightforward. ‘Purpose is no longer a ‘nice-to-have’ initiative, but a business imperative driven by changing customer expectations, investor priorities, regulatory developments and intensifying global competition.’

He argued that profitability and purpose are complementary rather than contradictory. ‘Purpose without profitability isn’t sustainable. You need profits to continue investing in communities, employees and the environment,’ he said.

Instead of focusing solely on financial returns, he insisted companies should embrace the ‘triple bottom line’ of people, planet and profit, creating value simultaneously for shareholders, customers, employees and society.

From products to brands and now to purpose

Tracing the evolution of marketing, Dr. Shamdasani explained that businesses initially competed through products before shifting towards brand-building as markets became increasingly commoditised.

Today, however, he said even strong brands are no longer sufficient. Virtually every industry from artificial intelligence to aerospace and software is experiencing rapid commoditisation, eroding traditional competitive advantages.

‘Technology alone rarely provides lasting competitive advantage,’ he observed.

Businesses that remain obsessed with product innovation risk falling into what marketing scholars describe as, ‘marketing myopia’ by failing to recognise evolving customer expectations.

He said strong brands still matter because they build trust, emotional connection and resilience, allowing companies to command premium pricing and maintain customer loyalty. But increasingly, purpose is becoming the next frontier of differentiation.

‘Businesses now need to become purpose-centric. Long-term profitability increasingly depends on trust, transparency, responsibility and creating value for society alongside shareholders,’ he pointed out.

Lessons from Apple, Nokia and Motorola

Using the evolution of the mobile phone industry, Dr. Shamdasani illustrated how even market leaders can quickly lose relevance when they fail to adapt.

‘Motorola once dominated global mobile communications before being overtaken by Nokia, which itself appeared unassailable after capturing over 40% of the global handset market. However, the launch of Apple’s iPhone in 2007 fundamentally changed consumer expectations by transforming the mobile phone into an integrated digital lifestyle device,’ he said.

He opined that Apple’s success was never simply about manufacturing superior hardware. Instead, it built a powerful ecosystem, distinctive design philosophy and emotional connection that consumers willingly bought into.

‘Despite operating in highly commoditised product categories, Apple became one of the world’s most valuable companies because consumers purchase the brand experience rather than individual products,’ he said.

Dr. Shamdasani said the lesson for businesses is clear.

Companies future-proof themselves not by making better products alone, but by building stronger brands and ultimately, stronger purpose.

Authenticity replacing marketing slogans

Nevertheless, he cautioned against treating purpose merely as another communications campaign.

He said recent controversies surrounding greenwashing, social washing and exaggerated ESG claims demonstrate that consumers and regulators increasingly demand authenticity.

Dr. Shamdasani stressed that purpose must be embedded throughout an organisation, from corporate strategy and procurement to manufacturing, employee management and customer engagement.

‘Purpose isn’t another marketing slogan. It has to become part of the company’s DNA,’ he added.

Growing consumer access to information through social media has made radical transparency unavoidable, with customers increasingly questioning where products originate, how workers are treated and whether sustainability commitments are genuine.

‘Trust, once lost, is extraordinarily difficult to rebuild,’ he warned.

Purpose reshaping supply chains

Drawing on his consulting experience, Dr. Shamdasani described how sustainability expectations are transforming global supply chains.

He recounted working simultaneously with Indonesian palm oil producer Sinar Mas and Nestlé during a period when the global food giant introduced significantly tougher sustainability requirements.

Nestlé demanded full traceability across its palm oil supply chain, requiring every shipment, plantation and supplier to be certified. Although compliance imposed substantial costs on suppliers, failure to comply meant losing access to one of the world’s largest multinational customers.

The case illustrated how purpose increasingly influences commercial relationships rather than merely enhancing corporate reputation.

Nestlé itself underwent a significant transformation after facing years of criticism over deforestation linked to palm oil production.

‘Today, sustainability is integrated throughout its supply chain, while brands such as KitKat and Milo openly encourage ‘responsible consumption’ rather than maximising sales,’ he said.

China and ExxonMobil illustrate different pathways

Dr. Shamdasani noted that purpose-led transformation rarely follows a single model.

He cited ExxonMobil’s growing investment in carbon capture technology, as an example of balancing commercial realities with long-term emissions reduction, even as broader renewable energy investments remain constrained by shareholder expectations.

China, meanwhile, demonstrated how national priorities can accelerate sustainable innovation.

Large-scale investments in renewable energy, solar technologies and electric vehicles have enabled China to become a global manufacturing leader, while making clean technologies increasingly affordable for emerging economies.

‘Purpose and sustainability, can therefore drive innovation and competitiveness rather than simply satisfying regulatory requirements,’ he pointed out.

Consumers increasingly buying values, not just products

One of the strongest arguments for purpose comes directly from changing consumer behaviour, Dr. Shamdasani said.

He noted that younger generations, particularly Generation Z and Generation Alpha, increasingly evaluate companies based on their values rather than simply price or product quality.

‘Consumers now ask not only what a company sells, but what it stands for,’ he added.

Global research consistently shows that customers value transparency, ethical business conduct, employee wellbeing, environmental responsibility and authentic organisational culture.

‘Purpose also begins internally,’ he noted. Companies cannot successfully project social responsibility externally if employees themselves are not treated fairly and respectfully. ‘Charity begins at home,’ he remarked.

Evidence increasingly supports purpose-led business

Addressing scepticism from executives demanding measurable returns, Dr. Shamdasani cited growing global evidence showing that purpose-led organisations outperform competitors over the long term.

Research by firms including McKinsey indicates companies with clearly defined purpose achieve stronger revenue growth, while Unilever has consistently found that its purpose-led brands outperform conventional brands within its global portfolio.

‘Purpose creates advocates rather than merely customers, strengthening loyalty while helping organisations recover more rapidly from crises because stakeholders trust their intentions,’ he said.

It also reduces business risk through stronger employee commitment, improved customer retention and greater preparedness for tightening regulatory requirements.

Patagonia demonstrates purpose as competitive advantage

Among the strongest examples of purpose-led branding, Dr. Shamdasani highlighted outdoor apparel company Patagonia.

Rather than encouraging excessive consumption, Patagonia famously urged consumers through its ‘Don’t Buy This Jacket’ campaign to purchase only what they genuinely needed.

The company designs products for durability, offers repair services and invests in sustainable supply chains, even helping develop organic cotton ecosystems benefiting competitors as well.

‘While Patagonia’s products command premium prices, customers increasingly perceive them as delivering superior long-term value through longevity and repairability. Purpose therefore becomes a strategic investment rather than an operational cost,’ he explained.

Purpose is strategic investment

Dr. Shamdasani also highlighted Dutch chocolate maker Tony’s Chocolonely as another example of purpose creating competitive advantage. Founded in 2005 after journalist Teun van de Keuken exposed child labour and modern slavery in West Africa’s cocoa industry, the company was established with a simple mission-to prove that chocolate could be produced ethically, whilst remaining commercially successful.

Rather than treating sustainability as a marketing campaign, Tony’s embedded its purpose throughout its business model. It built a fully traceable cocoa supply chain, paid farmers higher prices, invested in long-term supplier relationships and made transparency central to its brand. The company argues that poverty among cocoa farmers lies at the heart of child and forced labour, and that creating fairer commercial relationships is essential to eliminating exploitation.

Dr. Shamdasani said Tony’s Chocolonely illustrates how companies can place human rights at the centre of business, while remaining profitable, demonstrating that purpose-driven strategies can strengthen both commercial performance and consumer trust.

Sri Lanka has an opportunity to lead

Dr. Shamdasani argued that businesses capable of combining commercial excellence with genuine purpose will emerge as tomorrow’s winners.

‘Technology can be copied, products become commodities and even powerful brands lose relevance.

Purpose, however, creates trust, resilience, loyalty and meaning that competitors struggle to replicate,’ he said.

He called on Sri Lankan businesses not to wait for regulators or overseas buyers to impose higher sustainability standards, but instead proactively embrace purpose-led transformation.

‘Purpose is no longer simply about doing good. It is about building businesses that remain relevant, resilient and competitive in an increasingly uncertain world,’ he stressed.

For Sri Lanka, he suggested, purpose could become a defining competitive advantage in the global marketplace, enabling local companies to differentiate themselves through trust, transparency and long-term value creation rather than competing solely on price or scale.

Program highlights

The conclave also featured an insight session by Kantar Sri Lanka Director and Country Head Himalee Madurasinghe on understanding Generation Z and Alpha, while a strategic discussion on sensory branding brought together Spa Ceylon Ayurveda Wellness Co-Founder and Group Director Shalin Balasuriya and Prima Group Sri Lanka General Manager Sajith Gunaratne, moderated by Janashakthi Group Chief Marketing Officer Gamika De Silva.

Other sessions included Barista Coffee Ltd., CEO Dilupa Pathirana speaking on building brand loyalty through customer experience, and Unilever Sri Lanka marketing leaders Imeshika Kariyawasam and Shamara Perera discussing how the company has modernised its brand playbook.

The forum also marked the launch of the Brand Academy, Brand Leaders Circle and Marketers Meet, while Marketing and Leadership Institute CEO Thomas Barta delivered a keynote on ‘The 12 Powers of a Marketing Leader.’

A panel discussion on leveraging the evolving digital ecosystem featured Dialog Axiata PLC Group Chief Marketing Officer Lasantha Thevarapperuma and Singer Sri Lanka PLC Marketing Director Janmesh Paul Anthony, moderated by Food Revolution Ltd. Co-Founder Imal Fonseka.

John Keells Group Leisure Sector Senior Vice President – Global Alliances and Partnerships Dileep Mudadeniya presented a case study on ‘Sri Lanka to the World,’ while The One Club for Creativity APAC Regional Director Tay Guan Hin delivered the closing keynote on ‘Creative Collision: How Great Ideas Emerge from Tension and Contradiction.’

The Women in Shipping and Trading Association (WISTA) Sri Lanka successfully held its 11th Annual General Meeting recently at the Kingsbury Hotel.

The event brought together WISTA Sri Lanka’s distinguished membership, comprising senior maritime and shipping industry leaders’ along with key stakeholders to celebrate yet another year of women’s empowerment, professional development, strategic collaboration and community engagement within Sri Lanka’s maritime sector.

Sri Lanka Ports Authority Chairman Dr. Parakrama Dissanayake graced the event as the Chief Guest. In his address whilst congratulating the newly elected Executive Committee, he commended the work done by WISTA in the advancement of women in maritime, shipping, and logistics sectors over the years. He emphasised the importance of providing learning and development opportunities in the strategic growth areas targeting ship financing, maritime law and marine insurance amongst members. He also said that the success of women empowerment and diversity is not a maritime challenge only but an economic and national development priority.

The highlight of the evening was the presentation of the prestigious WISTA Sri Lanka Personality of the Year Award to Worldlink Shipping Colombo Ltd., Marketing Director Swabha Wickremesinghe, in recognition of her outstanding contributions made to the Maritime and Logistics sectors. As a Past President of WISTA, she continues to provide leadership and inspiration, championing the advancement of women in a traditionally male-dominated industry.

Chamila Bandara was unanimously reappointed as the President of WISTA Sri Lanka for another term, reflecting on the confidence and trust placed in her leadership by the membership. She serves as a member of the Group Management Committee of Hayleys Advantis Ltd., Director of Advantis Express licencee of FedEx and IML Delivery Systems.

Under her leadership, WISTA Sri Lanka continued to advance and empower women in the shipping and maritime sectors living by the objectives of WISTA.

In her address, Chamila spoke about the successful completion of activities focusing on professional growth of members, industry outreach, youth awareness, and community services with purposeful engagements throughout the year. She also spoke about the several initiatives taken during the year in promoting Shipping, Maritime and Logistics sectors as a preferred career choice where WISTA was able to reach out to over 1000 youth with structured programs. She also spoke about her personal leadership journey and how practicing soft skills mainly on humility and empathy assisted her in empowering teams to go beyond and achieve greater results.

Meridian Maritime Services Operations Director Maleena Awn was re-elected as Vice President, Centrum Marine Consultancy Director Patali Karunarathne was re- elected as Secretary, Hayleys Advantis General Manager – Assurance and Insurance Shiyamalee Karunanayake was re-elected as Treasurer, GAC Marine Services Operations Manager Felicita Alwis was elected as Assistant Secretary and McLarens Lubricants Finance Director Hannelore Baldsing was re-elected as Assistant Treasurer.

Hayleys Advantis Ltd. was the Exclusive Sponsor of the AGM reaffirming its continued commitment in supporting advancement of women in the Maritime and Logistics sector. South Asia Gateway Terminals Ltd. served as the Corporate Sponsor continuing its long-standing partnership with WISTA and supporting the Association’s growth through sustained collaboration and shared value creation.

WISTA Sri Lanka is part of WISTA International and continues to play a pivotal role in promoting diversity, inclusion and leadership within the maritime industry. Through professional development, advocacy and collaboration with industry stakeholders, the Association remains committed to creating opportunities for women while contributing to the long-term growth and competitiveness of Sri Lanka’s maritime sector.

Singapore retained their Asian Netball Championship crown in commanding fashion, defeating hosts Hong Kong 57-33 in the final at the Kai Tak Arena to secure back-to-back continental titles.

The victory also confirmed Singapore and Hong Kong as Asia’s representatives at the 2027 Netball World Cup in Sydney, after the top two finishers earned qualification from the tournament.

For Sri Lanka, however, the 14th Asian Netball Championship ended with a mixture of relief and disappointment. The six-time champions had arrived in Hong Kong with hopes of reclaiming the title they lost to Singapore in 2024, but ultimately had to settle for the bronze medal after defeating Malaysia 65-60 in the third-place playoff.

The third-place finish was enough to preserve Sri Lanka’s long-standing presence among Asia’s leading netball nations, but it also represented a significant step backwards. Most importantly, Sri Lanka failed to reach the final for the first time in 21 years and, with only the finalists qualifying for the 2027 World Cup, missed out on a place at the global tournament.

A promising start that never fully developed

Sri Lanka’s campaign began with a 57-57 draw against hosts Hong Kong, an encouraging result against a team that would eventually reach the final. The Sri Lankans then faced defending champions Singapore and went down 62-51. Although the defeat was competitive, it was an early warning of the challenge that awaited them later in the tournament.

The team responded positively against Malaysia, recording a 66-52 victory to register its first win. Sri Lanka then produced its most dominant performance of the preliminary stage, destroying India 100-34. That victory gave the team two wins, one draw and one defeat and appeared to place them in a strong position heading into the semi-finals.

There were genuine reasons for optimism. Sri Lanka had demonstrated that it could compete with the leading teams and had the attacking ability to overwhelm weaker opposition. Yet beneath those results were problems that would become much more obvious when the pressure increased.

The Singapore problem

The decisive moment came in the semi-final against Singapore.

Sri Lanka had already lost to Singapore in the preliminary round, but the semi-final demanded a completely different level of performance. Instead, Singapore produced a dominant display and won 82-54. The defending champions controlled the contest throughout, leading 20-11 after the first quarter, 39-25 at half-time, 63-40 after three quarters and eventually closing the match by a 28-goal margin.

The result exposed the gap between the two sides more clearly than their earlier group match. Singapore’s speed, consistency and control across the court proved too much for Sri Lanka, whose title hopes disappeared in one emphatic afternoon.

It was also more than just a semi-final defeat. Because Singapore progressed to the final, Sri Lanka’s loss simultaneously ended their hopes of qualifying for the 2027 Netball World Cup.

What really went wrong for Sri Lanka?

Sri Lanka’s problems were not limited to what happened on court.

The team entered the championship after a period of controversy surrounding selection and preparation. There were public reports of disagreements involving the national selection committee and head coach Somitha de Alwis, including controversy over the inclusion of an injured player. The coach rejected allegations that she had improperly influenced selections and said her concerns had been about team requirements and player fitness.

The injury issue continued to attract attention once the team reached Hong Kong. Reports also indicated that Sri Lanka were effectively operating with only 11 available players, while the coach identified a shortage of options in the centre-court positions as one of the reasons behind the team’s struggles against Singapore.

Preparation was another concern. De Alwis herself acknowledged before the tournament that the preparation period was limited, although the team did gain valuable international exposure through a series against New Zealand’s Lincoln University.

These factors do not explain every defeat, but together they paint a picture of a team that entered one of the most important Asian championships without the ideal preparation, depth and stability required to challenge Singapore over an entire tournament.

Bronze provides some consolation

Despite the disappointment, Sri Lanka showed character in the third-place playoff.

Facing Malaysia, the team found a way to recover from the heavy semi-final defeat and finished the tournament with a 65-60 victory. The win secured third place and ensured Sri Lanka remained on the Asian podium.

The bronze medal should not be dismissed. Sri Lanka remain one of the most successful teams in Asian netball history, having won the continental championship six times. They were runners-up in 2024 and had remained among Asia’s top three for much of the tournament’s history.

But for a nation accustomed to challenging for the Asian crown, third place will inevitably feel like an underachievement.

Singapore, meanwhile, demonstrated exactly what Sri Lanka must rediscover. After suffering a preliminary-round defeat to Malaysia, the defending champions regrouped, defeated Sri Lanka 82-54 in the semi-final and then produced an authoritative 57-33 victory over Hong Kong in the final.

For Sri Lanka, the bronze medal closes one chapter but raises serious questions for the future. The team still possesses talent, experience and the tradition to compete at the highest level in Asia. What is now required is stability in administration, transparent selection, better injury management, deeper player development and sufficient international preparation.

The 65-60 victory over Malaysia may have ended the campaign on a positive note, but the real challenge begins now. Sri Lanka must turn the disappointment of missing the 2027 World Cup into a lesson rather than allowing it to become another setback in the decline of one of Asia’s historic netball powers.

What must be done to bring back the glory?

The first requirement is stability.

Sri Lanka cannot afford repeated administrative disputes, selection controversies or uncertainty surrounding the national team. The national coach and selection committee must work within a clear, professional structure, with selection decisions based on transparent performance and fitness criteria.

Second, Sri Lanka needs year-round national preparation.

The national squad should not come together only a few months before an Asian Championship or World Cup. A larger pool of players should be maintained throughout the year, with regular camps, fitness testing, tactical training and performance reviews.

Third, international exposure must become a priority.

Sri Lanka needs regular matches against stronger opposition. Playing only domestic competition does not provide the speed, physical pressure and tactical demands required at international level. The coach had already identified overseas exposure as important before this championship. That approach should become part of a long-term programme rather than an occasional arrangement.

Fourth, Sri Lanka must build greater squad depth.

The team cannot depend heavily on a small group of experienced players. Every position needs at least two or three international-quality options. Particular attention should be given to developing centre-court players, shooters and defensive combinations so that injuries do not drastically weaken the team.

Fifth, the country needs to invest seriously in junior development.

The next generation must be identified before they reach senior level. Schools, clubs and provincial competitions should be connected to a national pathway, allowing talented young players to progress systematically into the national squad.

Finally, Sri Lanka needs a long-term high-performance programme.

The target should not simply be the next Asian Championship. A four-year plan should be established covering player development, coaching, sports science, strength and conditioning, nutrition, injury prevention, international tours and major tournament preparation.

The road back starts now

Sri Lanka’s bronze medal should therefore be viewed as a starting point rather than an achievement that ends the discussion.

The talent is still there. The history is there. The passion for netball remains strong.

What is missing is consistency in the system.

Singapore’s latest championship has demonstrated what sustained preparation and a clear high-performance structure can produce. Sri Lanka must now learn from that example rather than simply admire it.

The 2026 Asian Netball Championship may have ended with Singapore celebrating another crown and Sri Lanka collecting bronze, but the real story for Sri Lankan netball begins after Hong Kong.

If the administrators, coaches and players can put aside internal divisions, establish a transparent selection system, invest in young players, provide regular international exposure and build a deeper national squad, Sri Lanka can once again become the team everyone fears in Asian netball.

The Lionesses have already proved that they can reach the summit.

Now, the challenge is to build a system that can take them there again – and keep them there.

The Government has signalled that some form of income tax relief is coming, possibly as part of the Budget 2027 process that is now underway. That is welcome. But relief announced without care for how the bands are actually redrawn can end up helping the people who need it least while leaving the actual squeezed middle-income

earners exactly where where they were. And if that squeeze continues unaddressed, the cost will not stop at reduced disposable income; it will show up, again, in the number of skilled professionals who decide that the exit is simpler than the wait. The focus of this article is to set out why the design of the relief matters and what a genuinely useful package could look like

The response to my recent article on the middle-income tax squeeze ( Sri Lanka’s Personal Income Tax squeeze published on 27th July 2026 https://www.ft.lk/columns/Sri-Lanka-s-Personal-Income-Tax-squeeze/4-795176) was overwhelming and made one thing clear: this topic is not an abstract policy debate for the people living it. It is the accountant, the engineer, the bank officer, the manager, who does the arithmetic every month and finds that a salary that looks respectable on paper doesn’t stretch to a routine, unremarkable life once EPF, loan instalments, school costs and the weekly groceries are accounted for.

The squeeze is not a perception problem

Under the rates that have applied since April 2025, tax-free relief covers the first Rs. 1,800,000 of annual income, after which a taxpayer moves through bands from 6% up to 36%, with the top rate kicking in above Rs. 4,300,000 a year, or roughly Rs. 358,000 a month. That is not a luxury income in today’s Sri Lanka. It is a salary that, for someone with a housing loan, a vehicle lease, and a couple of children in school, disappears quickly into fixed commitments before a single discretionary rupee is spent. The squeeze on this segment is real in a very literal sense: take-home pay net of tax, EPF/ETF contributions and loan servicing is frequently insufficient to sustain what would elsewhere be considered an unremarkable, routine standard of living. This is not a complaint about paying tax. Salaried employees broadly accept that a functioning State needs revenue. The complaint is that the burden is landing narrowly, and in places arbitrarily, on a band of earners who have no capacity to plan around it, because it is withheld automatically at source every month.

Design of the relief mechanism

Whenever the Government talks about tax relief, the instinctive and politically visible move is to trim the top marginal rate – for instance, taking 36% down to 33% or 30%. It sounds generous, and it is easy to announce. But it does very little for the middle-income earner. A reduction in the top rate only benefits income earned above the top threshold; it does nothing for someone whose taxable income sits at Rs. 2.5 million or Rs. 3.5 million a year, who never reaches that bracket in the first place. If the Government wants to be seen to be helping ‘middle income earners’ while the actual mechanism only touches the highest band, the relief will not reach the people it intends to. Worse, if the bands themselves are restructured abruptly, in a way that shifts thresholds without careful modelling, there is a genuine risk that some earners who are intended beneficiaries of relief end up paying more, not less, simply because the width of the band they fall into has changed. Any redesign has to be tested against real payroll data, band by band, before it is announced, not worked out after the Laws are amended.

Widen the bands where the squeeze actually is

The more effective, and more equitable, lever is to widen the middle bands themselves, rather than chase headline rate cuts at the top. As things stand, the 6% band covers only the first Rs. 1,000,000 above the tax-free threshold, after which the rate jumps to 18%, then 24%, then 30%, then 36%, in steps of Rs. 500,000. That is a steep climb over a comparatively narrow income range. A more considered structure would widen the entry-level bands: extending the 6% band from the current Rs. 1,000,000 to, say, Rs. 1,500,000, and reintroducing an intermediate rate, for example 12%, over the next Rs. 500,000, before stepping up further. This keeps the same overall shape of a progressive schedule, but gives middle earners more room to grow their income before crossing into materially higher marginal rates. It costs the State less than a broad-based cut to the top rate, because it is targeted at exactly the income range where the bulk of compliant, withheld-at-source taxpayers actually sit – the same population the IRD’s own performance data shows is disproportionately carrying the APIT load.

To put a number on it: an individual earning employment income of Rs. 4,300,000 a year – Rs. 358,333 a month, precisely the income at which today’s top 36% rate begins – currently pays Rs. 35,000 a month in tax as APIT, having climbed through the 6%, 18%, 24% and 30% bands to get there. Under the widened structure proposed above, that same individual would still sit comfortably inside the 18% band at that income level, and would pay only Rs. 20,000 a month, a reduction of roughly Rs. 15,000 a month, or close to 43%, without the top marginal rate moving by a single point. This particular structure is offered here purely to illustrate the rationale, that widening the bands where people actually earn delivers more relief than trimming the top rate, and not as a finished proposal. The actual width and rates of any revised bands are a matter for policymakers to determine, taking into account the resulting revenue loss, the Government’s fiscal space under the ongoing IMF program, and the broader tax base the IRD is still working to widen.

Recognition for real financial commitments

A second, quieter unfairness sits underneath the rate structure altogether: the tax is levied on gross salary with no allowance for the fixed financial commitments that consume a large share of that salary. Consider a professional earning Rs. 400,000 a month. APIT is withheld in full on that gross figure (i.e Rs 50,000 a month). That same individual may be paying close to Rs. 200,000 a month in housing loan interest on a property purchased in good faith, often the only realistic route to home ownership in the current price environment. None of that interest reduces the taxable base. A deduction for housing loan interest existed in the previous Inland Revenue Act and under the current Statute also a few years ago, as part of a broader expenditure relief between 2020 and 2022, and has since lapsed; there is no equivalent relief available today. The result is that two employees earning an identical gross salary are treated identically by the tax system, even though one has a third of their income committed to housing debt. That is not a minor technical gap. It materially changes what ‘take-home’ income actually means for someone servicing a mortgage, and it should be revisited in any genuine relief package rather than treated as settled policy.

There is also a more fundamental principle at stake here, one that an earlier article by the author on housing affordability emphasised: the state’s own housing policy already treats it as an enabler of homeownership rather than a provider of housing for all. The Government simply does not have the fiscal capacity to build homes at the scale the country needs. Given that, the least it can do is stop penalising the citizens who are solving that problem on their own, through a bank loan and years of disciplined repayment, by taxing them as though that loan did not exist. Where the State cannot deliver a basic need directly, tax policy should at minimum get out of the way of the citizen trying to secure it for themselves. A capped deduction for housing loan interest is not an indulgence; it is the State acknowledging that private homeownership is doing work the public purse cannot.

The brain drain risk

There is a further cost to getting this wrong that rarely features in the tax debate directly: migration. Sri Lanka has already lived through one wave of professionals, from engineers and doctors to accountants and IT specialists, leaving for markets that offer a fraction of the tax friction and a multiple of the disposable income. The reasons for that first wave were partly about opportunity and partly about the crisis years. But a slower, quieter version of the same decision is available to any mid-career professional today: stay in a system where a decent salary is taxed hard, housing debt earns no recognition, and disposable income barely covers a routine life, or move to a jurisdiction where the same skill set converts into a materially better standard of living. A tax system that squeezes exactly the segment of the workforce that is most mobile, the salaried, internationally employable professional, is not a neutral outcome. It is a standing incentive to leave. Retaining that talent should be treated as a tax policy objective in its own right, not an afterthought to revenue targets, because every professional who leaves takes their APIT contribution, their spending, and their skills with them, permanently.

Life-stage reliefs deserve attention

Beyond the bands and the housing deduction, there is room for the Budget to recognise ordinary life events that Sri Lankan tax policy currently ignores entirely. A marriage allowance, even a modest one, would acknowledge that a newly formed household typically absorbs one-off costs at a point when income has not yet caught up. A child education allowance, similarly, would recognise that raising and educating children is itself a form of investment in the country’s future workforce, not a discretionary lifestyle choice to be taxed away without acknowledgement. These reliefs exist in many foreign tax systems precisely because they target real, verifiable life events rather than opening the door to broad-based avoidance, and they would cost the Treasury comparatively little set against the revenue base the IRD has now built.

Credible relief package

As the Budget 2027 is fast approaching the following are few reliefs that the policy makers can consider to help the working cadre:

1. Model any band change against actual payroll and APIT data before proposing it, so that no group intended to benefit ends up paying more because of how a threshold was redrawn.

2. Prioritise widening the entry-level middle bands over cutting the top marginal rate, since that is where the bulk of compliant, salaried taxpayers actually sit.

3. Revisit a housing loan interest deduction, even a capped one, on the principle that where the state cannot build housing for its citizens at scale, it should at least not tax them for building it themselves.

4. Introduce targeted, verifiable life-stage reliefs, such as a marriage allowance or child education allowance, that reward real commitments rather than simply lowering rates across the board.

5. Treat professional retention as an explicit goal of tax design, not a by-product of it, given how easily Sri Lanka’s most mobile, most heavily taxed workers can, and do, choose to take their skills and their tax contribution elsewhere.

None of this is about asking for a lighter tax burden in the abstract. It is about asking that when relief is finally delivered, it is delivered to the people it is announced for, and that it is designed with an eye on who it risks losing altogether, rather than dissolving into a headline rate change.

Sri Lanka’s fiscal recovery has been built, in large part, on the discipline of its salaried, tax-compliant cadre, the very group with the least room to absorb further strain and the most ability to simply leave. Budget 2027 is the moment to acknowledge this cadre. Genuine relief, designed with care and delivered where the squeeze actually is, will not weaken the revenue gains of the past years, it will secure them, by giving the country’s working professionals a tangible reason to stay, build, and keep paying into the system that needs them most.

(Reference has been made to the Inland Revenue Department’s Annual APIT tables published for calculation purposes)

The revised Value Added Tax (VAT) invoice format will become mandatory from 1 October 2026, the Inland Revenue Department (IRD) has announced.

The IRD has issued an Extraordinary Gazette setting out the requirements for the revised format, which was introduced on 27 March to streamline digital tax collection and improve transparency.

Implementation was initially scheduled for 1 July but was postponed after businesses sought more time to update their accounting, billing, and invoicing systems.

The IRD has instructed businesses to complete the necessary system changes before the 1 October deadline.

The Government has approved a proposal to convert 30,000 tons of paddy held by the Paddy Marketing Board (PMB) into rice, in a move aimed at supporting the Government’s paddy procurement program and ensuring adequate rice supplies to the market.

The decision follows a recommendation made at the 34th meeting of the Food Policy and Security Committee held on 22 July 2022, which proposed converting PMB-owned paddy stocks into rice through the Co-operative Wholesale Establishment (CWE).

Accordingly, the Cabinet of Ministers last week approved a joint proposal submitted by Agriculture, Livestock, Land and Irrigation Minister K.D. Lalkantha and Trade, Commerce, Food Security and Co-operative Development Minister Wasantha Samarasinghe.

Addressing the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said, under the approved arrangement, the CWE will invite expressions of interest (EOIs) from rice millers registered with the PMB to process rice from the 30,000 tons of paddy.

The processed rice will be supplied in 5 kg, 10 kg, 25 kg, and 50 kg packages, allowing the Government to distribute the stocks through multiple retail channels. A Special Price Committee will determine the appropriate conversion ratio from paddy to rice and the corresponding price of the processed rice. The Committee will comprise representatives of the PMB, CWE, Lanka Sathosa Ltd., the National Institute of Post Harvest Management, and the Hector Kobbekaduwa Agrarian Research and Training Institute.

Following processing, the rice will be released to consumers through Lanka Sathosa outlets, the cooperative network, and other private-sector distribution channels.

He said the move is expected to facilitate the Government’s paddy procurement mechanism by creating additional storage capacity for newly purchased paddy, while simultaneously releasing existing stocks into the market.

Ceylinco Life has announced that its total assets have surpassed the landmark Rs. 300 billion threshold, reaching Rs. 302.5 billion as at 30 June 2026, underscoring the company’s sustained growth momentum and financial resilience.

Over the first six months of 2026 alone, Ceylinco Life recorded asset growth of Rs. 15.65 billion, representing an increase of 5.45 per cent at an average monthly growth of Rs. 2.58 billion.

Significantly, the company reported a Risk-Based Capital Adequacy Ratio (CAR) of 406 per cent as at 30 June 2026, substantially exceeding the minimum regulatory requirement of 120 per cent set by the industry regulator. This strong capital position reflects Ceylinco Life’s prudent risk management practices, sound financial governance, and its commitment to safeguarding the interests of policyholders and other stakeholders, while demonstrating a high capacity to withstand macro-economic pressures and volatility.

Chairman R. Renganathan said: ‘Crossing the Rs. 300 billion assets milestone is a significant affirmation of the strength, stability and disciplined growth of Ceylinco Life. Our exceptionally strong capital adequacy ratio, which is well above regulatory requirements, highlights our prudent approach to risk management and our unwavering commitment to protecting policyholder interests. This solid financial foundation positions us to navigate economic uncertainties with confidence while continuing to deliver long-term value to all stakeholders.’

Ceylinco Life’s asset base is primarily driven by its financial investments, including a growing portfolio of real estate, reinforcing the quality and stability of its balance sheet. The company has continued to invest strategically in acquiring land for its branch network, enabling the development of eco-friendly green buildings while simultaneously enhancing the strength of its asset portfolio. Construction is currently underway on the company’s 36th branch building on land owned by Ceylinco Life.

Ceylinco Life’s continued growth builds on a strong performance trajectory in 2025, when the company recorded its 22nd consecutive year of market leadership in Sri Lanka’s life insurance industry, with gross written premium income of Rs. 44.18 billion. The company also reported total income of Rs. 72.43 billion and increased its total assets by 14.15 per cent to Rs. 287 billion at the end of that year, while its Life Fund crossed Rs. 200 billion.

With its expanding asset base, disciplined investment strategy, and consistently strong capital position, Ceylinco Life continues to reinforce its standing as Sri Lanka’s most financially stable and trusted life insurer.

Novak Djokovic suffered from punishing heat and humidity on Saturday but made a match of it before falling 2-6, 6-4, 6-4 to Thiago Tirante in what could be the Serb’s last appearance at the ATP-WTA Cincinnati Masters.

The second-round battle lasted for more than two and a half hours, and it proved too much for the 24-time Grand Slam champion, who was playing his first match since he lost to Jannik Sinner in the Wimbledon semifinals more than a month ago.

Top-seeded Alexander Zverev, the French Open champion who fell to Sinner in the Wimbledon final, was more fortunate, squeezing out an opening 3-6, 6-3, 6-3 victory over Cameron Norrie in a match that took two hours and 45 minutes and ended at 2:15am.

Britain’s Norrie has now lost all eight of his matches against the German, winner of the Cincinnati title five years ago, who is hoping a return to Ohio will help him shake off an abrupt exit in Canada last week.

Norrie had wrapped up the opening set before Zverev began to find his footing to level the match.

Norrie saved six break points in a 12-minute game to begin the deciding set but was broken twice as Zverev advanced.

‘I needed to get a match rhythm,’ Zverev said. ‘The confidence was not there after Canada. ‘The first set was not great, but the other two were at a high level, and I’m happy about that.’

Sri Lanka Tourism’s much anticipated interim overseas promotional campaign has been pushed from its previously announced August launch to September, raising concerns within the industry that the delayed rollout could leave the country with ‘little time’ to influence bookings for the crucial winter tourism season.

The Sri Lanka Tourism Promotion Bureau (SLTPB) had earlier announced that the market-specific interim campaign would commence in August, beginning with Germany, the UK, Australia, and New Zealand, before expanding to India, China and Russia in September (https://www.ft.lk/front-page/Sri-Lanka-to-launch-global-tourism-campaign-by-year-end-interim-market-blitz-begins-in-August/44-794450).

However, SLTPB Managing Director Sanjaya Niroshan yesterday confirmed that the announcement on the rollout will only be made on Wednesday (19), with the actual campaigns now being prepared for implementation from 1 September.

‘The interim campaign will commence in Australia, with our roadshows scheduled to begin from 31 August,’ he told the Daily FT.

‘We are moving ahead with interim market-specific campaigns while preparations for the global destination branding campaign continue. The objective is to maintain Sri Lanka’s presence in key markets until the global campaign is launched,’ Niroshan said.

He acknowledged that the campaigns will initially target New Zealand, Germany, and the UK followed by India, China, and Russia, while France, South Korea, and the Netherlands are expected to be covered subsequently.

The shift comes at a critical juncture for the tourism industry, with Sri Lanka entering the booking period for its peak winter season. Industry stakeholders have been pressing authorities to launch an interim campaign while the much larger global branding exercise remains pending.

Industry sources said they had repeatedly advocated for an interim promotional push to maintain Sri Lanka’s visibility in key source markets until the global campaign is operational. The concern is that starting the campaign only in September could be ‘cutting it too fine’ to generate meaningful demand for the winter season, particularly in long-haul European markets, where holiday planning and bookings are often made well in advance.

The delay is also taking place against a backdrop of softening arrivals.

Sri Lanka welcomed 1,436,929 tourists by 13 August 2026, compared with 1,467,694 during the corresponding period last year. During the first 13 days of August alone, arrivals fell 5.9% year-on-year (YoY) to 93,511, compared with 99,406 in the same period of 2025. July arrivals had also recorded a marginal 1.7% decline to 196,845, following much sharper contractions in March and April amid disruptions to international aviation caused by the Middle East conflict.

India has remained a key buffer, with 358,608 arrivals recorded during the first seven months of the year, followed by the UK with 140,892 and China with 94,890.

Niroshan assured that the Rs. 3.5 billion global destination branding campaign remains on track for launch by the end of this year or early 2027.

The comprehensive campaign is intended to reposition Sri Lanka in international markets and support the Government’s longer-term target of attracting 5 million tourists and generating $ 8 billion in tourism earnings by 2030.

He said the SLTPB has completed procurement for several high-value overseas marketing contracts to support the international rollout.

Niroshan described the interim campaigns as a major shift from fragmented, individual-market promotions towards a coordinated strategy targeting high-value source markets.

Compared to their global counterparts, digital use and digital crime awareness are highest in Asia Pacific (APAC) according to a recent Kaspersky study.

The global cybersecurity and digital privacy company highlights the need for embedded protection as digital tech usage in the region outpaces the global average.

Asians are highly online, and are also aware of the dangers in the digital world.

These are the findings of a recent B2C Pulse Survey conducted by Kaspersky Market Intelligence. Consumers in APAC are outpacing their global counterparts in terms of online shopping (80% vs 71%), digital finance (72% vs 70%), digital entertainment (70% vs 62%), and digital communication (68% vs 61%).

The results of the survey were announced during Kaspersky’s APAC Cyber Security Weekend in Guangzhou, China recently.

APAC consumers are also more concerned about digital tech usage for crime than consumers globally (35% vs 32%). The awareness is highest in Thailand (39%), followed closely by Malaysia (38%), Indonesia (35%), China (34%), India (32%), and Vietnam (31%).

Kaspersky Head of Consumer Channel for APAC Choon Hong Chee said: ‘When 77% of APAC is online and digital wallets accounting for roughly 70% of online payments, cybersecurity is no longer optional. The region expects 2.11 billion mobile subscribers by 2030, which makes protecting personal data and financial transactions critical to sustaining trust in the region’s thriving digital economy.’

Mobile threats in APAC and the need for embedded security on phones

As APAC is rapidly becoming a mobile-first digital economy, Kaspersky shared it has blocked nearly 30,000 mobile attacks against consumers in the region during the first three months of 2026.

India and Indonesia logged the highest number of mobile attacks with 18,187 and 15,163 incidents, respectively. However, this type of threat is ballooning in other APAC countries. Particularly, steep increase on a year-on-year comparison – Q1 2026 and Q1 2025 – was observed by Kaspersky telemetry in Taiwan (+373%), Sri Lanka (132%), Thailand (+127%), Bangladesh (108%), China (69%), and the Philippines (28%).

‘The rapid rise in mobile attacks across multiple APAC markets is a reflection of how quickly the region’s digital habits are changing. While the nearly 30,000 mobile threats detected in just the first quarter may appear small against the scale of APAC’s digital population, they could represent only the tip of the iceberg. India and Indonesia recorded the highest volumes, but the sharp year-on-year increases seen in Taiwan, Sri Lanka, Thailand and Bangladesh show that mobile threats are rapidly expanding beyond the region’s largest digital economies. Unlike PCs, mobile phones are often not protected with the same level of security, despite increasingly becoming the gateway to our financial, social and professional lives. As cybercriminals follow this shift, the challenge is ensuring that mobile security evolves at the same pace as adoption,’ adds Choon.

As mobile threats expand, Kaspersky stressed security also needs to move closer to where consumers conduct their digital activities. One effective approach is to build protection directly into mobile applications, rather than relying solely on users to install and maintain separate security solutions on their devices.

Kaspersky Mobile Security SDK enables organisations such as banks, retailers, government services and app developers to integrate multilayered security directly into their mobile applications. The SDK provides capabilities including anti-phishing and malware detection, secure connectivity, device reputation checks, data protection and detection of remote access tools. It can also generate alerts when threats such as financial Trojans, password stealers and phishing malware are detected on a device.

This embedded approach to mobile security is particularly relevant as smartphones increasingly become the primary gateway to banking, payments, shopping and other sensitive digital services. By integrating security into the applications themselves, organisations can help provide protection without placing the entire responsibility on consumers to identify and respond to increasingly sophisticated mobile threats.

Kaspersky also offers Kaspersky Who Calls SDK, which enables organisations to integrate caller identification and reputation information into their mobile applications, helping users identify potentially suspicious or unwanted calls and numbers.

To provide additional protection against malicious and phishing websites, Kaspersky also has its Safe Web. Kaspersky Safe Web, an agentless, network-based security solution that enables broadband and mobile ISPs to scan users’ web traffic via DNS filtering technology, help users identify potentially dangerous links before they access them. It can help safeguard users across browsing, online banking, shopping and other everyday digital activities.