Category: Daily Financial Times

HNB PLC recently opened its newly relocated Homagama Customer Centre at No. 01, High Level Road, Homagama, reinforcing its commitment to delivering superior customer experiences through modern banking facilities and innovative digital solutions.

The new Homagama Customer Centre was ceremonially declared open by Managing Director/CEO Damith Pallewatte, together with Executive Vice President/Head of Network Business Supun Dias, Divisional Secretary of Homagama B. A. D. Chinthaka, Regional Business Head – Greater Colombo South Region Lasitha Ranatunga, Manager Homagagama Branch Chandima Gunawardhana and senior representatives of the Bank, and valued customers.

Addressing the gathering Pallewatte said: ‘Homagama has evolved into a vibrant and dynamic community with significant potential as both a residential destination and a thriving commercial centre. As the needs and expectations of our customers continue to evolve, we have invested in this modern Customer Centre to provide a more convenient, personalised, and seamless banking experience. This facility reflects our commitment to standing alongside our customers, supporting their ambitions, and helping them achieve their financial goals through trusted solutions and dedicated service.’

Executive Vice President/Head of Network Business Supun Dias said: ‘At HNB, we view every customer interaction as an opportunity to create greater value and convenience. The relocation of our Homagama Customer Centre underscores our commitment to making banking more accessible, efficient, and aligned with the evolving expectations of our customers. By bringing together modern facilities, digital innovation, and the expertise of our people, we continue to deliver a seamless banking experience that supports customers at every stage of their financial journey.’

President Anura Kumara Dissanayake mounted a detailed defence of the proposed 22nd Amendment to the Constitution before the Bar Association of Sri Lanka (BASL), arguing that extending the retirement age of Superior Court judges was necessary to retain judicial experience as the Government expands court capacity, and rejecting claims that the move was intended to benefit particular incumbents.

The President’s Office yesterday shared the text of the President’s comments during the meeting with BASL representatives on Wednesday.

Explaining the rationale during discussions with the BASL, the President said the retirement-age change should have been made when the 20th Amendment expanded the Supreme Court from 11 to 17 judges and the Court of Appeal from 12 to 20.

He reasoned that if the six additional Supreme Court positions had been filled from the then 12-member Court of Appeal, only six judges would have remained there. Together with the eight additional Court of Appeal positions created by the expansion from 12 to 20, this would have required 14 new appointments to the appellate court.

President Dissanayake said that was the point at which the retirement-age reform should have been introduced to retain the experience of serving judges while substantially expanding the courts. ‘However, that did not happen,’ he said.

He said the judicial system needed to retain a mix of experience, but argued that selecting particular judges for retention on the basis of their ability or experience would itself raise questions of undue privilege and intervention.

The President said an objective assessment mechanism could be preferable, but maintained that such a mechanism alone would not guarantee judicial independence. His preferred approach was therefore a broader change applying to the judicial system rather than selecting individual judges for extended service.

Responding directly to the BASL’s argument that the extension could amount to a privilege for incumbent judges, President Dissanayake said almost any reform affecting the judiciary could be characterised in that way. He cited the previous increase in the number of Supreme Court and Court of Appeal judges as an example, saying that too could have been interpreted as creating positions for particular individuals.

He said the same argument could be made about judicial salaries, vehicle permits, or appointments and maintained that he had therefore sought to structure the proposed change without selecting particular beneficiaries.

‘I regard it as an effort to take the existing state of the judiciary to a new level,’ he said, rejecting the contention that it constituted a privilege for particular individuals.

On criticism over why the Amendment was being introduced now, the President said any change in retirement age would inevitably come too late for some judges who had already retired and benefit others approaching retirement. On that reasoning, he said, timing alone could not establish that the measure was designed to favour particular judges.

He also rejected arguments that the reform should be delayed until after 1 December, saying that if the objection disappeared after a particular date, the dispute appeared to concern particular individuals rather than the underlying policy.

‘I have no personal interest in any particular individuals,’ he said, adding that he did not know many of the judges concerned before becoming President.

President Dissanayake said the Government was not proposing a further increase in the number of Supreme Court judges, but wanted to add four Court of Appeal judges.

He linked that increase to plans to use the constitutional provision allowing the Court of Appeal to sit in the provinces rather than remaining concentrated in Colombo. Additional judges would provide the capacity for such sittings once the required infrastructure was established.

The Government also intends to establish about 11 new High Courts, primarily across 10 districts, and increase the High Court cadre from 110 to 120. The President said High Court numbers had to rise together with the establishment of new courts because, unlike the Superior Courts, High Court judges require specific courts in which to serve.

He rejected suggestions that the retirement-age changes would produce a two-year deadlock in judicial appointments and promotions. While Supreme Court appointments could be affected, he said the additional Court of Appeal judges would be appointed as new sittings were established, High Court appointments would accompany the creation of new courts, and promotions in the lower judiciary would continue.

The Judicial Service Commission is also moving to recruit 50 additional magistrates. President Dissanayake stressed that the relevant selection panels, rather than the Executive, would determine how many applicants met the required standard.

The President separately explained why some existing judicial vacancies had not yet been filled, saying he expected the issue to be resolved within about a month.

He linked the delay to the Easter Sunday case, which involves about 23,000 charges and 3,000 witnesses and is being heard by a three-member High Court bench comprising some of the most senior High Court judges, who would also be among those eligible for appointment to the Court of Appeal.

President Dissanayake said the case was now in its final stage and he had considered the consequences of elevating a judge from the bench before its conclusion, as well as the possible disadvantage to that judge if an appointment were withheld.

He said moving the judge could jeopardise continuity in a case carrying substantial public expectations of justice, while leaving the judge out of consideration could itself be unfair. The vacancies, he insisted, had not been kept open for a preferred candidate or until someone became eligible.

‘If I had wanted to, I could have allowed the Easter Sunday case to collapse,’ he said, questioning who would restart a trial involving about 23,000 charges and 3,000 witnesses and when victims would then receive justice.

President Dissanayake said the Amendment had to be understood within a wider reform of the justice process, beginning before cases reached court.

He said the Government planned to establish 24 regional offices of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), which currently has only one office in Colombo, and had approved the recruitment of 373 officers on higher salary scales to strengthen investigative capacity.

The Police has an approved cadre of 102,000 but only around 72,000 serving officers, of whom nearly 4,000 are unable to perform uniformed duties, leaving about 68,000 effectively available. The Government plans to recruit another 10,000 officers and provide additional equipment and technology.

The Attorney General’s Department is also to receive 50 additional officers, while the Government is reviewing promotions and increasing allowances in an effort to stem the departure of skilled and experienced legal officers.

The judicial sector itself has around 1,007 support-staff vacancies. Approval has been granted to recruit about 260 personnel, attracting around 21,000 applications, and the President said the Government intended to fill the remaining vacancies through established recruitment procedures.

Budget provisions are also planned to complete partially constructed court buildings, except projects affected by unresolved contractor disputes, and to provide permanent facilities for courts operating from rented premises. Judicial digitalisation is being advanced, with systems in the Supreme Court and Court of Appeal at the testing stage.

President Dissanayake acknowledged the BASL’s concern that the Amendment could create a damaging perception even if no individual benefit was intended, but maintained that the proposal formed part of reform spanning investigations, prosecutions, judicial capacity, staffing, and infrastructure rather than an isolated extension of judges’ tenure.

He also said his position was ‘firmly grounded in the Constitution’ and that he had no intention of exercising Executive powers beyond those constitutionally granted, adding that he was prepared to accept any risk to his own office arising from pursuing changes he considered necessary.

The President concluded that despite the objections and wider public debate, the Government believed a change to the system was necessary and would proceed on the ‘principles and policy objectives underlying this reform.’

Sampath Bank yesterday said it has delivered a strong financial performance for the six months ended 30 June 2026, reporting Total Operating Income of Rs. 63.3 billion, an increase of 17% compared to the corresponding period last year.

In a statement Sampath said the bank’s performance was driven by sustained growth across its core revenue streams, with Net Interest Income increasing by 11% and Net Fee and Commission Income rising by as much as 26%.

The bank’s earnings performance was, however, moderated by a higher impairment charge of Rs. 5 billion, a year-on-year increase of 324% driven primarily by collective impairment attributable to the continued expansion of the loan portfolio as well as the bank’s prudent provisioning strategy adopted in light of ongoing geopolitical uncertainties and the evolving macroeconomic environment. Consequently, the Net Operating Income recorded a more modest growth of 10% over the corresponding period of the previous year.

Despite higher operating expenses arising from business expansion initiative and continued strategic investments in technology, distribution and human capital, the bank reported a Profit After Tax of Rs. 16.6 billion for the period, reflecting a robust year-on-year increase of 13%. The result underscores the bank’s resilient business model, disciplined risk management practices and continued ability to deliver sustainable earnings while supporting long-term growth in a dynamic operating environment.

In line with its strategic growth priorities, the bank’s loan portfolio expanded by Rs. 226 billion from its position at the end of 2025, representing a robust increase of 18%. This growth was supported by enhancements to the bank’s credit origination framework, including streamlined processing, improved operational efficiencies and strengthened governance through a clearer segregation of responsibilities between business units and central processing functions. These initiatives have further strengthened the Bank’s credit delivery capabilities while reinforcing its risk management framework.

The bank recorded a strong quarter-on-quarter improvement in profitability, with Profit After Tax increasing by 69% compared to the preceding quarter. This performance was driven by a 22% increase in Total Operating Income, reflecting continued business momentum across the bank’s core operations, together with a 89% reduction in impairment charges. The lower impairment charge was primarily attributable to an impairment reversal exceeding Rs. 3 billion, driven by the successful recovery of long-outstanding loans during the quarter. These factors collectively contributed to the bank’s stronger earnings performance, underscoring the resilience of its operating model and the effectiveness of its disciplined credit risk management practices.

The Sampath Group reported a Profit Before Tax of Rs. 26.6 billion and a Profit After Tax of Rs. 17.9 billion for the six months ended 30 June 2026.

In the first half of 2026, Sampath Bank reported Total Interest Income of Rs. 97.8 billion, representing a 9% increase compared to the corresponding period last year. The growth was mainly attributable to the expansion of the Bank’s lending portfolio and improved assets yields, supported by movements in the Average Weighted Prime Lending Rate (AWPLR).

Interest expenses increased by 8% to Rs. 55.1 billion, primarily reflecting the continued expansion of the deposit base and additional borrowings undertaken to support the bank’s accelerated credit growth. As the growth in interest income outpaced the increase in funding costs, Net Interest Income (NII) increased by 11% over the corresponding period of the previous year to Rs. 42.8 billion. This performance highlights the bank’s ability to effectively manage interest margins while sustaining growth in a dynamic interest rate environment.

Consequently, the Bank’s Net Interest Margin (NIM) improved to 4.21%, compared with 4.11% reported in 2025. This improvement was primarily driven by improved yields on the advances portfolio, supported by strong loan growth and favourable movements in market interest rates. The improvement in margin performance reflects the bank’s disciplined balance sheet management and its continued ability to generate sustainable core earnings.

The bank’s non-fund-based income increased by 30% over the corresponding period of the previous year to Rs. 20.5 billion, driven by sustained growth in fee and commission income and an appreciable increase in foreign exchange-related earnings.

Net Fee and Commission Income increased by 26% to Rs. 12.2 billion, supported by the continued expansion of the bank’s lending portfolio and higher transaction volumes across its key business segments. Meanwhile, Total Exchange Income rose significantly to Rs. 7.2 billion, representing an increase of 198% over the corresponding period of the previous year. The increase was primarily attributable to the depreciation of the rupee against the US dollar by Rs 26.12 during the period, together with higher foreign exchange transaction volumes.

Capital gains from the sale of Treasury Bills and Bonds moderated to Rs. 1 billion, during the period, from Rs. 3.5 billion recorded in the corresponding period of 2025, reflecting lower opportunities for gains in the prevailing market environment.

The bank recognised a total impairment charge of Rs. 5 billion during the first half of 2026, compared with Rs. 1.2 billion recorded in the corresponding period of 2025, representing an increase of Rs. 3.8 billion. The higher impairment charge primarily reflects the continued expansion of the bank’s lending portfolio and its prudent provisioning approach in response to prevailing macroeconomic and geopolitical uncertainties.

The impairment charge on loans and advances increased to Rs. 5.3 billion in the first half of 2026, compared with Rs. 1.4 billion in the corresponding period of 2025. This increase was primarily attributable to higher collective impairment provisions arising from the bank’s strong loan portfolio growth of 18% during the period, compared with 7% growth recorded in the first half of 2025.

Consistent with its prudent risk management framework, the bank recognised additional allowance for management overlay during the period to respond to continued geopolitical uncertainties. This proactive measure reinforces the bank’s resilience by maintaining adequate provisioning buffers to mitigate potential risks arising from both the domestic operating environment and the evolving global landscape.

The bank also undertook a comprehensive review of its ISL customer portfolio during the period and recognised prudent provisions in the financial statements based on the individual risk profile of each customer, with particular focus on higher-risk sectors. This reflects the bank’s disciplined approach to credit risk management and its continued focus on preserving asset quality while maintaining resilience amid evolving global uncertainties.

During the first half of 2026, the bank recovered Rs. 572 million from written-off customers, compared with Rs. 216 million recognised during the corresponding period of 2025.

An impairment charge of Rs. 200 million was recognised on other financial instruments during the first half of 2026, primarily in relation to new investments made during the period.

During the first half of 2026, the bank’s operating expenses increased by 21% year-on-year, reflecting continued investment in strategic growth initiatives, capacity enhancement, and future business expansion. The increase was mainly driven by the expansion of the workforce to support business growth and operational requirements, annual salary revisions, higher operating costs associated with increased business volumes, and sustained investment in technology and digital capabilities. In addition, the depreciation of the rupee against major foreign currencies contributed to higher foreign currency-denominated operating expenses.

As operating expenses grew at a faster pace than Total Operating Income, which increased by 17% during the period, the bank’s Cost-to-Income Ratio increased to 41.7%, compared with 40.0% in the corresponding period of 2025. Despite these investments, the bank remains committed to prudent cost management and continuous improvements in operational efficiency, while investing strategically to support sustainable profitability and create long-term value for shareholders.

The bank recorded a total tax expense of Rs. 15.3 billion for the first half of 2026, representing a 8% decrease compared with the corresponding period of 2025. The reduction was primarily attributable to the finalisation of tax assessments relating to prior years, which resulted in a lower tax charge during the current reporting period.

Sampath Bank continued its growth momentum during the first half of 2026, expanding its asset base by 8% from the year-end 2025 position to reach Rs. 2.13 trillion as at 30 June 2026. This increase was largely attributable to strong growth in the lending portfolio, with Gross Loans increasing by. Rs 226 billion to Rs. 1,449 billion. The expansion was driven by a Rs. 197 billion growth in rupee-denominated loans, complemented by a Rs. 29 billion increase in foreign currency lending.

Notwithstanding the accelerated loan growth achieved since the third quarter of the previous year, the bank maintained a resilient asset quality profile, with the Stage 3 portfolio declining by Rs. 10.8 billion. The increase in the Stage 2 portfolio by Rs. 36.8 billion was primarily attributable to the bank’s proactive and forward-looking credit risk assessment practices. Although migration to Stage 2 based on days past due demonstrated an improvement, the bank undertook a comprehensive review of its portfolio in response to prevailing geopolitical uncertainties and prudently reclassified selected exposures to Stage 2 to maintain appropriate risk buffers.

The bank’s funding base continued to demonstrate strong momentum during the first half of 2026, with total liabilities increasing by 8% from the year-end 2025 position to Rs 1.95 trillion as at 30 June 2026, reflecting an annualised growth rate of 16%. This expansion was primarily driven by the continued growth of the customer deposit portfolio.

The bank’s deposit base increased by Rs. 118 billion during the period to reach Rs. 1.76 trillion as at 30 June 2026, compared with Rs. 1.65 trillion as at 31 December 2025. The growth was largely supported by a Rs. 99 billion increase in rupee-denominated deposits, complemented by a Rs. 19 billion rise in foreign currency deposits.

As at 30 June 2026, the bank recorded a Return on Average Shareholders’ Equity (after tax) of 18.91%, compared with 17.93% as at 31December 2025. Meanwhile, the Return on Average Assets (before tax) stood at 2.40%, compared with 2.60% recorded at the end of 2025.

Sampath Bank maintained a strong capital position throughout the period, with all regulatory capital ratios remaining above the minimum requirements prescribed by the regulator. As at 30 June 2026, the Common Equity Tier 1 (CET 1), Tier 1 and Total Capital ratios stood at 13.21%, 13.21% and 15.62%, respectively, compared with 14.75%, 14.75% and 17.65% as at 31 December 2025. The movement in capital ratios primarily reflected the increase in risk-weighted assets arising from the bank’s strategic loan portfolio expansion during the first half of 2026.

As part of its ongoing efforts to strengthen its capital position, the bank successfully issued a Rs. 10 billion Basel III-compliant Green Bond in July 2026. The issuance received strong investor interest and was oversubscribed, underscoring confidence in the bank’s financial resilience, strategic growth direction and commitment to advancing sustainable finance.

The bank continued to maintain a strong liquidity position, with both the All-Currency Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) remaining above regulatory thresholds. As at 30 June 2026, the LCR (All Currency) and NSFR stood at 185.04% and 157.38%, respectively, compared with the minimum regulatory requirement of 100%.

Deloitte Sri Lanka, in collaboration with Deloitte India, recently hosted the Saarthi Program for Independent Directors at the Sheraton Colombo, bringing together independent directors and Board members to explore the future of effective corporate governance.

The program focused on some of today’s most pressing Boardroom priorities, including the future of governance, cyber and technology risks, fraud risk management and social media risk governance, providing practical insights into how Boards can strengthen organisational resilience while creating long-term value.

Speaking during the program, Deloitte Sri Lanka and Maldives Partner and Financial Services Assurance and Industry Leader Malinda Boyagoda emphasised that scope of governance today extends well beyond compliance and historical financial reporting.

‘Boards today are expected to be active stewards of resilience rather than passive reviewers of performance. As organisations embrace geo-political uncertainties, AI, digital transformation and increasingly complex business models, governance must evolve at the same pace. Fraud, cyber threats and emerging technology risks are no longer operational issues; they are Boardroom priorities that require sustainable solutions with informed oversight and constructive challenge. The organisations that will earn lasting stakeholder trust are those with Boards possessing right skills, who act with a proactive mindset and are prepared to ask difficult questions from management, before risks become crises.’

During his session on Fraud Risk Management, Boyagoda highlighted the evolving responsibilities of directors in guarding corporates against the rising risks of theft, corruption and financial reporting fraud. He underscored the need for Boards to move beyond reactive governance and foster ethical leadership, strengthen fraud risk management through prevention, detection and response mechanisms, and deploy continuous transaction monitoring tools and data analytics to identify emerging risks before they become significant business issues.

Building on these governance foundations, the program continued with a series of virtual sessions delivered by senior leaders from Deloitte India and distinguished members of the Saarthi Advisory Board.

The session on Boardroom Priorities: Navigating Cyber and Technology Risks, explored how artificial intelligence, cloud technologies and evolving cyber threats are reshaping Board oversight. The session highlighted that cybersecurity is now a strategic business issue requiring active Board engagement, with further discussions focusing on AI and data governance, third-party cyber risks, regulatory compliance and proactive incident response planning. Participants were encouraged to challenge management on cyber preparedness while recognising AI as both a driver of innovation and an emerging source of enterprise risk.

The session on Boardroom Priorities: Navigating Fraud Risks, reinforced that fraud is a governance priority requiring proactive Board oversight. Drawing on global fraud trends and recent corporate cases, the session examined the growing sophistication of cyber-enabled fraud, AI-powered scams and third-party risks, while highlighting the importance of reinforcing an ethical culture, web-based whistleblower mechanisms, fraud governance frameworks, and independent investigation protocol in protecting enterprise value and stakeholder confidence.

A key highlight of the program was the panel discussion on ‘Expectations from Boards in the Areas of Cyber, Technology and Fraud Risks,’ featuring members of the Saarthi Advisory Board and other veteran business leaders. Drawing on extensive Boardroom experience, the panel discussed the increasing expectations placed on directors to balance innovation with governance, strengthen oversight of emerging risks, challenge management constructively and foster cultures of accountability and resilience.

The program concluded with Social Media Governance: Balancing Risk, Reputation and Responsibility. The session highlighted the growing importance of social media governance as a Board-level priority, exploring governance frameworks for digital communications, regulatory compliance, influencer management, crisis response and brand protection. It also demonstrated how AI-enabled social media listening and continuous monitoring can help organisations identify reputational risks early while strengthening stakeholder trust in an increasingly digital environment.

Through Saarthi, Deloitte continues to create a platform for Board members and business leaders to exchange perspectives on emerging governance expectations, challenges and gain practical insights on strengthening oversight, managing risk and building resilient organisations equipped for long-term success.

Royal College Colombo, became the first school in Sri Lanka to enable digital payments through GovPay, marking another significant milestone in the Government’s digital transformation agenda.

The official launch took place recently at a ceremony held at the Royal College, Colombo where the school was formally onboarded to the GovPay platform.

With this integration, parents can now conveniently make school Facilities and Service Fee payments as well as School Development Society (SDS) Fee payments securely through any digital banking platform or FinTech application connected to GovPay. The new facility replaces the cumbersome manual payment process, which was both time-consuming and inconvenient for parents while creating an administrative burden for the school. This initiative provides parents with a faster, more secure and convenient payment experience.

Royal College Colombo Principal Athula Wijewardena said: ‘As Sri Lanka’s first school to adopt GovPay, Royal College is proud to lead the way in embracing digital transformation within the education sector. This initiative will significantly improve the convenience offered to our parents while enabling the school to manage collections more efficiently, accurately and transparently. We believe this is a progressive step towards modernising public education administration.’

LankaPay CEO Channa de Silva said: ‘We are delighted to welcome Royal College, Colombo as the first school in Sri Lanka to join GovPay. Extending digital payments to schools represents another significant milestone in making Government services more accessible and citizen-centric. This further validates how digital payments can simplify everyday interactions between citizens and government while enhancing transparency, financial accountability and operational efficiency in Public Institutions.’

Royal College School Development Society Secretary Jaliya Perera, also welcomed the initiative, stating ‘The introduction of GovPay simplifies the payment process for our parent community while strengthening financial governance through secure digital transactions. It eliminates unnecessary paperwork and queues, allowing both parents and the School Development Society to benefit from a more efficient, transparent and accountable payment ecosystem.’

GovPay is a collaborative initiative of LankaPay and GovTech Sri Lanka, implemented under the direction of the Ministry of Digital Economy to enable secure and convenient digital payments for Government services. With the onboarding of Royal College Colombo, GovPay now connects 301 Government institutions, providing citizens with digital access to payments for 4,413 Government services. Since its launch in February 2025 the platform has processed 439,818 transactions with a total transaction value exceeding Rs. 4.8 billion demonstrating the rapid adoption of digital payments across Sri Lanka’s public sector.

GovPay is Sri Lanka’s national Government digital payment platform that enables citizens to make secure online payments to Government institutions through participating banks and licensed FinTech applications, offering a seamless, convenient and transparent payment experience.

The call for cutting the inflation target from 5% to 2% is gaining momentum. The case rests on an appealing proposition: less inflation means more monetary stability, lower interest rates and fewer distortions. But the argument risks confusing a lower numerical target with better monetary policy.

Sri Lanka’s problem has not been whether inflation was targeted at 2% or 5%. We have seen repeated failures to maintain monetary and fiscal stability in the past. But the dynamic has changed with new laws governing public finance and the Central Bank.

The claim that a higher inflation target increases the risk of overshooting does not necessarily follow. A Central Bank capable of holding inflation around 2% should also be capable of holding it around 5%. Conversely, weak policy, fiscal dominance or an external shock can overwhelm either target. Moving the number down does not remove those risks.

Nor does a 5% target amount to a policy of artificially cheap money. Interest rates can remain consistent with a 5% inflation target without being suppressed below market-clearing levels. The danger comes when monetary policy holds real rates too low for prevailing economic conditions, not from the inflation target itself.

The historical comparison with the past also warrants caution. Low inflation and interest rates then existed under an economic structure, exchange-rate regime, capital account and global monetary system far removed from those confronting Sri Lanka today. Singapore provides another useful lesson in monetary discipline, but its economic structure, external balance and monetary framework are hardly replicas available for Sri Lanka to adopt.

More importantly, inflation targeting involves trade-offs.

Sri Lanka remains exposed to oil, food and other imported price shocks. A 2% target could require a tighter adjustment path following persistent supply-driven inflation. Trying to force inflation rapidly back to 2% after an external shock could require interest rates and credit conditions that impose costs on investment, employment, public finances and an economy still rebuilding its capital stock.

That does not make inflation desirable. It means the cure carries costs too.

The proposition that exchange-rate depreciation merely magnifies imported shocks also understates the role of the exchange rate in adjustment. A country cannot simultaneously expect its exchange rate to remain stable, monetary policy to pursue an inflation target and capital to move freely without confronting the constraints imposed by the monetary policy trilemma. Something must adjust.

The strongest objection, however, is to the claim that a higher inflation target will lead to balance-of-payments crises. Sri Lanka’s external crises have involved fiscal deficits, monetary financing, reserve depletion, exchange-rate management, external borrowing and structural weaknesses. To assign such crises principally to whether the inflation target is 5% rather than 2% gives one policy parameter explanatory power it does not possess.

Credibility also does not require eliminating discretion. Central banks confront wars, pandemics, commodity shocks, financial crises and other events that no rule can fully anticipate. Credibility comes from explaining decisions, acting consistently with a mandate and returning inflation to target over a credible horizon, not from refusing to respond when circumstances change.

We certainly need monetary discipline. We need price stability, an independent Central Bank, continued fiscal discipline and structural reform. The institutional framework has also changed, with much tighter constraints on monetary financing of Government deficits.

But none of those propositions establishes that 2% is the right inflation target.

After the economic dislocation we have endured, the burden of proof lies with those proposing another change to the monetary framework. The question is not whether 2% inflation sounds better than 5%.

It is whether the economy is sufficiently resilient to adjust to those trade-offs, and whether forcing inflation towards 2% would deliver benefits greater than the economic costs required to get there and keep it there.

International experience offers successful examples across very different monetary regimes, from independent central banks to currency boards. The framework matters more than the number.

Celebrating its 20th anniversary, Pyramid Wilmar Ltd. has successfully concluded ChefsHunt, a landmark corporate social responsibility (CSR) initiative that reflects the company’s commitment to fostering culinary excellence and driving meaningful community impact.

ChefsHunt was conceived to discover and cultivate emerging culinary talent across Sri Lanka, bringing together 1,000 young participants between the ages of 18 and 25 from 10 locations nationwide.

The initiative provided a unique opportunity for aspiring chefs to develop their skills, gain industry exposure, and unlock their professional potential. Out of this talented pool, 23 exceptional individuals were selected to receive full scholarships for a comprehensive culinary course at the MW Institute of Culinary Arts.

The scholars commenced their intensive training on 19 January and successfully completed the six-month program on 10 July. Marking the next step in their professional journeys, these young talents are now entering the industry to gain hands-on, practical experience.

Upon completing this vital industrial training period, they will be officially awarded the prestigious NVQ Level 4 Certificate, setting a strong foundation for long-term careers in the culinary arts.

Commenting on this initiative, Pyramid Wilmar Ltd. Group Managing Director Sajjad Mawzoon said: ‘Through the ChefsHunt initiative, we are not only celebrating two decades of excellence but also actively investing in the future of Sri Lanka’s culinary landscape. Seeing these 23 talented young individuals complete their training and take their first steps into the industry is a testament to what is possible when raw talent is met with the right opportunities, education, and mentorship. This initiative is part of our obligation, as a company, to give back to our country and its citizens.’

As a driving force in the local food manufacturing sector, Pyramid Wilmar remains committed to uplifting Sri Lanka’s emerging culinary professionals while simultaneously expanding its footprint in the Hotels, Restaurants, and Cafes (Horeca) channel through innovative new product portfolios.

Through initiatives like ChefsHunt and industry-leading product offerings, Pyramid Wilmar continues to shape the future of Sri Lanka’s culinary landscape, fostering local talent and empowering the next generation of professional chefs.

BRICS Chamber of Commerce General Secretary and a prominent private sector personality Kosala Wickramanayake has written an open letter to President Anura Kumara Dissanayake and Foreign Affairs Minister Vijitha Herath on the urgent need to fill diplomatic vacancies in key capitals.

I write to you with a deep sense of national interest and urgency regarding Sri Lanka’s current diplomatic representation in two of our most consequential partner nations: the People’s Republic of China and the United States of America.

1. The China vacancy – A strategic gap

It has now been over six months since Sri Lanka’s Ambassador to China departed, and we are yet to nominate a successor. In contrast, our largest neighbour, China, moved with remarkable speed to appoint a new Ambassador to Sri Lanka just one week after their previous envoy’s departure. This asymmetry sends an unintended signal of disengagement at a time when China remains our second-largest economy and a critical partner in infrastructure, investment, and debt restructuring. A prolonged vacancy undermines our ability to negotiate, attract investments, and advance bilateral projects that are vital to our economic recovery.

2. The United States – Our largest export market

Even more concerning is the current vacancy in Washington, D.C. The United States is our single largest export market, absorbing nearly 30% of Sri Lankan goods. With supply chain realignments, GSP+ discussions, and IMF engagement ongoing, having an Ambassador in place is not a formality-it is a commercial and economic necessity. Every week without a chief diplomat in Washington is a week we risk losing market share, investor confidence, and policy influence.

3. A call for decisive action

Prioritise nominations for both Washington and Beijing concurrently, rather than sequentially.

Set a clear timeline-no more than 30 days-to announce nominees, subject to parliamentary or constitutional approvals.

Select candidates with proven diplomatic acumen and commercial credibility, not merely political seniority. Our envoys must be dealmakers and advocates, not just ceremonial representatives.

Sri Lanka’s economic survival depends on our ability to project influence, secure markets, and sustain trust with our global partners. In the race for recovery, diplomatic speed is a strategic advantage. We cannot afford to be absent from the table when critical decisions about our future are being made.

I thank you for your leadership and trust that you will treat this with the urgency it deserves.

Trident Corporation, the official distributor for BricsCAD in Sri Lanka and the Maldives, has launched the globally recognised CAD platform through two high-profile industry events, marking a significant step in expanding access to advanced, affordable design technology across the region.

The customer launch, attracted over 100 architects, engineers, surveyors, designers, government representatives and corporate customers. The event featured live demonstrations showcasing BricsCAD’s capabilities in 2D drafting, 3D modelling, BIM, mechanical design and surveying.

The momentum continued the following day, with an exclusive Partner Meetup at Cinnamon Lakeside, where leading IT and engineering solution providers explored commercial opportunities, technical certification and strategies to expand BricsCAD adoption across both markets.

With more than 25 years of technology distribution experience, Trident Corporation will deliver comprehensive local sales, implementation, training and technical support, enabling organisations to migrate seamlessly to a cost-effective CAD platform without compromising productivity or native DWG compatibility.

Thakral Group Sri Lanka and Maldives Country Head Hilmey Niyas said: ‘We are delighted to be appointed as the official distributor of BricsCAD in Sri Lanka and the Maldives. This strategic partnership with Bricsys strengthens Trident Corporation’s position as a leading provider of innovative technology solutions across the region. By bringing BricsCAD’s powerful CAD and BIM platforms to our markets, we are committed to enabling engineers, architects, and businesses to accelerate innovation, enhance productivity, and drive digital transformation with greater efficiency and value.’

Commenting on the launch, Trident Corporation General Manager Hasalaka De Silva said, ‘BricsCAD provides an exceptional balance of innovation, affordability and productivity. Combined with Trident’s nationwide partner network and dedicated local expertise, customers can confidently embrace a future-ready CAD platform with world-class support.’

The launch reinforces Trident Corporation’s position as a leading technology enabler while providing Sri Lankan and Maldivian businesses with a competitive alternative for modern engineering and design workflows.

The National Chamber of Exporters of Sri Lanka (NCE) has opened applications for the NCE Export Awards 2026, the country’s premier national awards program dedicated to recognising and honouring the best-performing exporters.

In its 34th year, the awards have become a continuous and consistent feature of Sri Lanka’s export calendar, providing national recognition to businesses that have contributed to the country’s export performance and the overall economy.

Sri Lanka’s export sector has persistently played an important role in the country’s economic performance. Export earnings surpassed $ 10 billion during the first six months of 2026, highlighting the scale of activity generated by businesses serving international markets. The NCE Export Awards were established to recognise the achievements of Sri Lankan exporters and give due recognition to the contribution they make to the national economy. Over the years, the program has provided exporters with an opportunity to have their performance recognised at a national level, while also encouraging businesses across the export sector to maintain standards in international trade.

The awards program has been conducted consistently for more than three decades, through periods in which Sri Lanka’s exporters have faced changing economic conditions and challenges in international markets. Its continuation over the years highlights the importance placed on recognising the work of businesses operating in the export sector and the contribution they make to the country’s economic activity and foreign exchange earnings, as well as motivating exporters and encouraging them to pursue higher standards in international trade.

The 34th Annual NCE Export Awards Ceremony is scheduled to be held on 11 December 2026 at the Grand Ballroom of the Shangri-La Colombo. The event is expected to bring together exporters, public officials, policymakers, diplomats, business leaders and other stakeholders connected to Sri Lanka’s export sector.

The awards are presented following an evaluation process based on the criteria set out for the program. This provides a basis for assessing participating companies and recognising those that have recorded notable performance in their respective areas. Over the years, receiving an NCE Export Award has come to represent recognition within Sri Lanka’s business community and the export sector.

Applications for the NCE Export Awards 2026 are currently open, with the closing date set for 30 September 2026. The Chamber is also conducting briefing sessions for prospective applicants to provide guidance on the application process, evaluation criteria and other important aspects of the awards program. The briefing sessions are intended to assist interested companies in understanding the requirements before submitting their applications. Companies considering participation are encouraged to attend these sessions and make use of the guidance available as they prepare their submissions.

With the application period now underway, the NCE is calling on exporters from across the country and across sectors to take part in the NCE Export Awards 2026. The program is an opportunity for businesses to have their achievements recognised at a national level and to be part of an awards program that has recognised Sri Lankan export performance for more than three decades.

The deadline for applications is 30 September 2026, while the winners will be recognised at the 34th Annual NCE Export Awards Ceremony on 11 December 2026. Download the application from www.nce.lk.