Fintrex and KayJay Electronics sign MOU to launch CCTV loan facility

Fintrex Finance PLC has announced the official launch of the Fintrex CCTV Loan Facility, introduced through a strategic partnership with KayJay Electronics, a trusted provider of CCTV and surveillance solutions.

The launch was marked by the signing of a Memorandum of Understanding (MOU) between Fintrex Finance CEO Jayathilake Bandara and KayJay Electronics Managing Director Kushal Johnpillai in the presence of the management teams of both companies.

Through this partnership, customers will now have convenient access to financing for high-quality CCTV security solutions offered by KayJay Electronics, supported by flexible financial solutions from Fintrex Finance.

This collaboration reflects the shared commitment of Fintrex and KayJay Electronics to make modern security technology more accessible, affordable, and convenient for homes, businesses, and institutions across Sri Lanka.

Fintrex Finance PLC looks forward to building a strong and mutually rewarding partnership with KayJay Electronics, while empowering customers with greater peace of mind through reliable security solutions, the company said.

Sajith wants Treasury report on $ 2.5 m cyber fraud tabled in Parliament

Opposition Leader Sajith Premadasa yesterday called on the Government to immediately table in Parliament the Treasury’s report on the $ 2.5 million cyber fraud involving external debt payments, while separately raising concerns over what he described as conflicting economic messaging from the Government and the Central Bank of Sri Lanka (CBSL).

Addressing Parliament, Premadasa said the Treasury report on the cyber attack should be made public to ensure accountability and transparency regarding the incident.

Separately, he argued that contradictory statements issued by Government authorities and the CBSL on economic matters had created uncertainty and confusion regarding the country’s policy direction.

Premadasa said such inconsistencies risk undermining confidence at a time when fiscal and monetary policies need to be implemented with clarity and consistency.

He called on the Government to present a comprehensive framework outlining its fiscal and monetary policy approach, including the instruments being used, the targets being pursued, and the institutions responsible for implementation.

The Opposition Leader also sought details on how agreements with the International Monetary Fund (IMF), World Bank, Asian Development Bank and other international institutions have influenced policy execution and how these commitments relate to primary balance and revenue targets.

Premadasa further questioned the Government’s assertion that Rs. 17,000 is sufficient for an individual to meet monthly living expenses, asking whether such an amount could realistically cover both food and non-food expenditure.

He also urged the Government to explain the measures being taken to alleviate economic pressures faced by the middle class, professionals, small and medium enterprises, farmers, fishermen and low-income groups amid higher taxes, constrained public expenditure and tight monetary conditions.

Premadasa stressed the importance of strengthening parliamentary oversight and public accountability in the formulation and implementation of fiscal and monetary policies.

Sri Lanka’s business problem is not just the economy

Sri Lanka is recovering, but let’s not start throwing confetti yet.

Yes, growth is returning. Tourism is improving. Business confidence is better. Investment is slowly waking up from its crisis-induced coma.

But many Sri Lankan companies are still trying to solve new business problems with old management habits, fear-based cultures, and departments that behave like tiny kingdoms with email accounts.

The economy matters… But the deeper problem is cultural… specifically company cultures.

Here are three critical shifts that could create serious impact in people and company performance.

1. Kill the blame culture

Sri Lankan businesses cannot afford the luxury of blame anymore.

When something goes wrong, sales blames marketing, marketing blames finance, finance blames operations, operations blames suppliers, and eventually everyone blames the Government because that is easy and requires no self-awareness.

Brilliant. Very productive.

Blame does not solve problems. It hides them. It makes people afraid to speak up, afraid to try, and afraid to admit mistakes.

The DC methodology replaces blame with Failing Intelligently:

1.Understand the consequence.

2.Fix the problem immediately.

3.Identify what must change so it does not happen again.

In a recovering economy, companies need speed, honesty, and innovation. Blame kills all three.

2. Break the department kingdoms

Many organisations do not have teams. They have kingdoms.

Finance protects finance. HR protects HR. Operations protects operations. Sales runs around shouting ‘urgent’ while everyone else pretends not to hear.

This is not alignment. This is organised dysfunction.

Sri Lankan companies now need cross-functional cooperation to handle rising costs, skills shortages, digital change, export pressure, and customer expectations.

The Culture Evolution model would move these companies away from Multi-Directional Culture, where departments protect themselves, toward a Unified Identity, where people feel they are part of one mission.

The key is not another motivational poster.

The key is getting employees to co-create guiding principles, common language, and shared ownership of the working culture they want.

Because ownership is faster than compliance.

3. Measure behaviours, not just results

Most companies love KPIs.

Revenue target. Sales target. Cost target. Growth target.

Wonderful. But if you only measure the final number, you are already late.

By the time the report arrives, the problem has unpacked, made tea, and become part of the company culture.

‘Measure Everything’ approach focuses on the behaviours that create results.

If you want innovation, measure idea-sharing and testing.

If you want better service, measure the behaviors that improve customer experience.

If you want leadership, measure clarity, trust, support, and accountability.

This is where gamification becomes powerful. Not childish points and badges, but visible progress, fast feedback, and emotional motivation connected to real work.

The real opportunity

Sri Lanka does not only need economic recovery. It needs to Reset the Brain of leaders and employees to make visible impact.

It needs organisational recovery.

Companies that remove blame, break silos, and measure the right behaviours will move faster, adapt better, and keep better people.

The country needs businesses where employees do not just survive work, but contribute through work.

Because the next level of Sri Lankan business growth will not come from strategy documents alone.

It will come from cultures that make people brave enough, clear enough, and motivated enough to actually execute them.

The EPF under CBSL custody: Fixing the principal-agent problem

Corruption and abuse of the public’s Employment Provident Fund (EPF) under the custody of the Central Bank of Sri Lanka (CBSL) represents one of the largest financial integrity failures in the country’s history, one that continues to this day with zero regulatory obstacles.

Public outrage and recommendations from the Presidential Commission of Inquiry led to a comprehensive forensic audit published in 2019, which exposed systemic corruption, irregular trading, and ‘pump and dump’ equity schemes spanning decades.

While the mechanisms for abusing the public’s EPF, which exceeds 15% of Sri Lanka’s Gross Domestic Product, have been extensively discussed by trade unions, civil society institutions, and analysts, the aim of this discussion is to highlight the fundamental enabling mechanism stipulated by Sri Lanka’s monetary legislation. Both the old Monetary Law Act and the current CBSL Act of 2023 leave the public’s EPF wide open to the private gain of an exclusive group of rogue financiers, bureaucrats, and politicians.

By introducing a simple alteration in governance, we can directly address this severe principal-agent problem.

Legal status

The root cause of the principal-agent problem in the EPF is the existence of an exclusive CBSL Staff Provident Fund (SPF), completely insulated from and independent of the operation and management of the general public’s EPF.

This exclusive fund was originally established under Section 10(b) of the Monetary Law Act (MLA) No. 58 of 1949. Following the recent legislative updates, this authority has been solidified under the CBSL Act No. 16 of 2023. While the 2023 Act repealed the old MLA to grant CBSL statutory autonomy, it preserved CBSL’s autonomous powers over its internal management, staff remuneration, and separate retirement fund structures.

Under Section 24 of the new Act, the Governing Board (which handles internal administration rather than monetary policy) is explicitly mandated to establish and fund welfare, pension, and provident fund schemes specifically tailored for CBSL staff, independent of standard public service or general private sector frameworks. Furthermore, Section 105(1), read alongside Section 106(1), grants the Governing Board absolute authority to implement binding rules concerning retirement benefits.

Crucially, the legislation imposes no rigid asset restrictions on this internal Staff Provident Fund, nor does it mandate line-by-line investment disclosures. In contrast, the public’s EPF is subject to explicit legally binding transparency provisions under a separate EPF Act of 1958-stipulations with which the CBSL has regularly failed to comply. Given that the SPF is classified as an internal staff welfare benefit, the 2023 CBSL Act only requires aggregate financial reporting of the fund.

The assets, returns, and future pension liabilities of the SPF are published strictly as a consolidated line item within the Notes to the CBSL’s Annual Financial Statements. This disclosure framework exposes a sharp double standard. Because the investment performance, transaction histories, and specific asset classes of the SPF are buried within the bank’s consolidated institutional balance sheet, the general public cannot verify whether the SPF achieved higher, market-insulated yields compared to the public EPF.

Exclusive CBSL fund can front-run the market

This transparency gap is compounded because the CBSL manages the SPF while simultaneously possessing a total monopoly over privileged market-altering macroeconomic information.

This includes advance knowledge of upcoming adjustments to Treasury debt issuance schedules, target yield bands, policy interest rate shifts, confidential foreign exchange reserves data, impending currency devaluations, and the outcomes of negotiations with multilateral institutions such as the International Monetary Fund (IMF).

In financial markets, advance knowledge of this data is the ultimate superpower. If the internal asset managers of the CBSL SPF have even passive proximity to these policy shifts, they can structurally optimise their staff portfolio-buying long-term bonds right before rates drop (maximising capital gains) or shifting to short-term repos right before a rate hike-weeks before the general public or commercial banks can react.

This scenario creates a textbook case of severe information asymmetry, effectively legalising market front-running through the provisions of both the historical MLA and the current CBSL Act of 2023.

Given that the CBSL manages both the multi-trillion-rupee public EPF and its own internal staff fund, the risk of front-running (where an entity uses advance knowledge of a massive pending order to execute a relatively smaller, highly profitable trade on its own behalf first) is acute. For instance, when the CBSL is about to use the public EPF as a ‘captive market’ to absorb a massive tranche of low-yielding Government debt, it can insulate its internal staff fund from those low returns ahead of time. The staff fund can liberally cherry-pick the highest-yielding, most secure bonds or fixed deposits, leaving the lower-yielding papers to be absorbed by the public EPF.

CBSL as moral hazard

This two-tier retirement system does more than create a fiduciary blind spot; it creates an institutional moral hazard.

CBSL staff have no inherent obligation to optimally manage the public’s EPF when their own funds are managed exclusively by them through a separate mechanism. They can quietly enable or enforce the exploitation of the public fund because they are entirely shielded from the resulting losses. This complete absence of ‘skin in the game’-where the personal financial well-being of ‘the agent’ (CBSL) is not tied to the well-being of ‘the principal’ (the people) they serve-leads to the EPF’s principal-agent crisis. The current legal framework effectively transforms the CBSL into an adverse selection risk and a source of systemic moral hazard.

As a result, the public EPF has been effectively dedicated as a captive fund for periodic abuse by interest groups that have co-opted State institutions. Given that CBSL staff have their retirement assets safely tucked away in an exclusive internal fund, there is a total decoupling of the fates of the public’s EPF and the CBSL’s internal fund.

If the EPF suffers billions in losses due to a political bond scam or a corrupt equity ‘pump-and-dump’ scheme, the retirement security of CBSL officers remains completely untouched. The managers bear 0% of the financial risk of their management choices, while the public bears 100% of it. Hence, having a separate internal fund allows the custodian to treat the two asset pools with completely different levels of integrity.

The CBSL staff fund can be managed with strict, risk-averse commercial prudence, securing high-yielding, stable market instruments to guarantee excellent payouts for its own employees, while the public fund can be quietly designated to absorb low-yielding Government debt to bail out State fiscal deficits, or used to buy overvalued shares and nationalise the losses of rogue financiers and traders.

Forcing ‘the agent’ to be ‘a principal’

In any institution, internal resistance is the first line of defence against fraud. However, that resistance is usually fuelled by self-preservation. If CBSL employees’ own retirement savings were merged with the general public EPF, any internal attempt by senior management or politicians to manipulate the fund would face immediate, aggressive pushback from the bank’s own staff and trade unions. Officers would fight to protect the ledger, not out of abstract altruism, but out of financial self-preservation, because their own retirement security would be tied to that exact ledger.

Merging the CBSL Staff Provident Fund into the general public EPF completely resolves this principal-agent problem by introducing shared destiny. Forcing the regulators to share a single asset pool transforms the agent into a principal. The decision-makers would instantly face the exact same economic consequences as the public. A merged fund completely eliminates the option of using the public pool as a sacrificial lamb because any artificial suppression of yields or corrupt transactions would automatically penalise the regulators’ own savings.

IMF’s disastrous push to amend EPF Act

Conversely, the IMF’s proposals to strip the public’s EPF away from the CBSL and hand day-to-day asset management to a separate, independent trustee board through amendments to the EPF Act, as stated in its Governance Diagnostic for Sri Lanka-effectively a form of privatisation-do not eliminate the principal-agent problem. Instead, they merely shift it from a State agent to a private agent, potentially magnifying the risk of corruption.

This is a disastrous proposition given the rent-seeking nature of Sri Lanka’s financial elite, whose capacity for mismanagement was recently demonstrated by failures at the National Development Bank. A private trustee board remains an agent managing other people’s mandatory savings. Because contributions remain legally mandated and members cannot exit or withdraw their funds at will, the private managers face no market competition or threat of a bank run from dissatisfied members. Hence, placing a multi-trillion-rupee public fund under private controllers, as per IMF recommendations, creates a lucrative target for corporate capture, substituting State-led corruption with oligarchic exploitation.

Transforming a developing nation into a developed one -Part I

Transforming a nation from developing to developed status is one of the most ambitious undertakings any Government can pursue. For a country like Sri Lanka, rich in human capital, strategically located, and endowed with natural beauty, the potential is immense. Yet potential alone does not guarantee progress. Citizens in a democracy have both the right and the responsibility to expect certain standards of governance, policy direction, and national vision from their elected leaders.

This article outlines the core expectations citizens should have of a democratically elected government, which is NPP now in Sri Lanka, aiming to elevate a developing nation to developedcountry status. My representation of people’s expectation is supported by citing real life examples from around the world.

I am not a blind supporter or a blind critic of NPP.

First of all, it is people’s right to select a government. As a professional of chosen disciplines, I try to educate people with my opinions what kind of government would be suitable to move forward a country economically and socially? I may be right or wrong. It is up for debate. After people made their decision, irrespective of my liking of not about the decision, my job is to support the elected government when they do right things and criticise the things I believe they got wrong.

As a citizen, I want the NPP Government do the best which I am yet to see. As apolitical person who does not like party politics, I will try to analyse the present Government activities constructively.

Ideally, after appointment as a Government, NPP should have openly declared this is a Government for all and invite public, in particular all professions across the country to shed their political affiliations temporarily for five years and come forward to join the national effort to develop the country and suggest going back to their political affiliations at the end of five years to elect the next government or support another five years term for NPP, guarantying treatment of all merit basis, not based on any political affiliations including NPP and JVP. You may say I must be kidding.

In my personal circle of friends and family members, I argue with blind supporters of NPP on its poor performance and defend NPP against blind haters of NPP on its good but slow actions. I strongly believe that if NPP succeeds in its national endeavour it would be because of people like me rather than blind supporters. I hope NPP strong men and women understand it and listen to critics objectively.

Why NPP was elected

Sri Lanka’s traditional right-wing political movements have promoted various forms of capitalist aspirations. For over seven decades, many ordinary citizens repeatedly supported these parties, hoping that economic growth would improve country as well as their own circumstances. Instead, many perceived a widening gap between the wealthy and the poor.

Recognising these realities, the JVP understood that it would be difficult to attract broader electoral support without presenting a more moderate socio-economic vision. The NPP emerged as a front capable of appealing beyond the JVP’s traditional base. It gradually expanded by attracting professionals, middle-class voters, and individuals seeking cleaner governance and institutional reforms.

When the NPP sought national support, it offered a compelling vision of good governance and social transformation. However, appealing to a diverse electorate required more than a reform agenda alone. To gain widespread support, the NPP combined realistic policy objectives with highly attractive public promises that resonated across different social and economic groups.

This approach should not necessarily be viewed negatively. Political change often requires working within existing systems rather than attempting to transform them from outside. Many educated middle-class supporters understood that not every campaign promise would be fully achievable and viewed some of the rhetoric as part of a broader strategy to secure electoral victory and create an opportunity for reform. This strategy ultimately contributed to the NPP’s success in both the presidential and parliamentary elections.

The Journey so far and the General Reading of the NPP

Electoral success did not automatically translate into governing capability. While the NPP demonstrated a genuine commitment to changing political culture and improving governance standards, good intentions alone are insufficient. Effective governance requires robust systems, competent institutions, experienced professionals, and clearly defined implementation pathways.

A successful reform agenda requires a structured framework encompassing strategy, policy development, legislation, regulation, enforcement, monitoring, and continuous review. Such a framework must be supported by expert knowledge, professional administration, transparent decision-making, and extensive public consultation. In many respects, this is where the NPP appears to have struggled during its first year in office. It appears NPP is treating symptoms.

Mistake 1- Disproportionate representation of real voters of NPP in Parliament

The origins of the National People’s Power (NPP) can be traced to the Janatha Vimukthi Peramuna (JVP). Historically, the JVP’s core support base represented only a relatively small segment of the electorate like three percent. Many of these supporters were attracted by socialist ideals despite operating within a predominantly capitalist economic system. However, the NPP’s electoral success was achieved not through the support of traditional JVP voters alone, but through a much broader coalition of citizens, including many who neither identified with the JVP nor subscribed to its ideological foundations.

These voters supported the NPP because they believed in its promises of reform, good governance, and institutional change. Consequently, many expected that parliamentary candidates, regardless of their personal political backgrounds, would collectively pursue the policies and objectives presented by the NPP during the election campaign.

A key concern, however, is whether the current parliamentary representation adequately reflects the broad cross-section of voters who supported the NPP. There is a perception that many elected representatives and appointees continue to reflect the traditional JVP constituency more than the wider electorate that enabled the NPP’s victory. Similarly, many voters expected appointments to positions such as ministry secretaries, board directors, chairpersons, and other senior leadership roles to be made primarily on merit rather than political affiliation. Looking back at appointments made thus far, questions naturally arise as to whether the most suitable individuals have always been selected.

One possible explanation is that the NPP leadership, having limited practical experience in governing complex state institutions, may have preferred appointing individuals with whom they felt politically comfortable and who were easier to manage. While such appointments may strengthen political control, they do not necessarily guarantee administrative competence or policy delivery capability. The consequence has been an apparent difficulty in developing, reforming, and implementing policies, processes, and institutional frameworks capable of achieving the ambitious goals promised during the election campaign. As a result, meaningful governance reform and broader social transformation remain largely unrealised aspirations.

Mistake 2 – The inability to shed ‘Opposition’ mindset

Equally concerning is the inconsistency in public messaging and the body language projected by various sections of the Government. Even after assuming power, the NPP often appears to behave as though it remains in opposition. Still NPP members talked about past Government mistakes and corruption. They were appointed because people did not approve past mistakes. This is a Government which has very clear two-third parliamentary majority enabling them to change the constitution, outdated and polarised laws and introduce governance reforms. NPP Government has all the power to remove any obstructions excreted by influential groups in society to enable progress.

Still, the energy of current NPP government is used to criticise opposition politicians rather than doing the job in hand. In Cricket, we say let the bat and ball talk.

With a clear collective change management plan, even if a referendum is required, NPP can win it now. People would support them wholeheartedly if a Court decided the change requires a referendum. However, that possibility would not be a reality if they continue the way they do now after one more year without having a clear plan seeking approval.

Mistake 3- Taking long to make the right decision

A government elected on a platform of change should demonstrate its commitment to good governance by clearly differentiating itself from previous administrations. This requires objective decision-making on time, equal treatment of all citizens, and the consistent application of the law without favouritism toward political, religious, or social interest groups.

When the former speaker was accused of faking his professional qualifications, until the matter is resolved, he should have been asked to resign immediately. It took so much time to do it and by that time indelible damage has happened to NPP brand which will never be recuperated. When cabinet spokesman or other NPP members addressed public and expressed anything to damage the NPP brand, the leadership should have the guts to declare they were wrong and removed them from making public announcements on behalf of Government. NPP Government if fear of English language. English is only a tool. It is not a symbol of prestige or importance. If a Government Minister needs to attend an international forum, he or she should not be fear of taking a language translator. If the last USSR leader Mikhail Gorbachev or the current President of China Xi Jinping use a translator, why cannot our parliamentarians do this? By the way, it is said that both these leaders could and can speak English well and used the time of translation for preparing for a well-rounded answer. However, I am of the strong opinion that Sri Lanka’s Foreign Minster should be a high calibre, politically and socially matured, multi-language skilled person with high negotiation powers. When an internationally embarrassing incidents happened due to poor English language skills, the top leadership should accept the mistake and make necessary changes to avoid repeating of the mistakes. People love to see accepting mistakes and taking swift actions. The list of mistakes goes on: Coal purchasing, international monetary transactions, public tendering, slow actions on alleged crimes committed by influential public figures. It took unbelievably long time to take right actions. It says justice delayed is justice denied.

The Government should not govern with the primary objective of securing the next election by appeasing own political friends and associates or influential constituencies. Rather, it should be prepared to uphold the principle that all individuals are equal before the establish procedure, regulations and the law, regardless of status, influence, or public popularity. If the NPP can maintain discipline within its own ranks and prevent elected representatives from becoming captive to external influences, it is likely to retain the support of a substantial portion of the electorate over the longer term.

Mistake 4- Wrong learning strategy and poor governance

Beneath the political leadership sits the public governance structure, the leadership of which is, in most cases, appointed by political authorities. Effective governance depends not only on political direction but also on the competence, experience, and professionalism of those entrusted with administrative leadership.

Organisational learning generally occurs through three primary mechanisms: practical experience, observation of others, and formal guidance from subject-matter experts. The governance leadership appointed under the NPP has understandably sought to learn through direct experience. However, this situation is largely a consequence of placing significant emphasis on political affiliation rather than professional capability, technical expertise, and administrative experience when making appointments. As a result, much of this learning appears to have occurred without the benefit of appropriate institutional structures, adequate preparation, or expert support. This is reflected in contradictory public statements, policy inconsistencies, and communication shortcomings when responding to public concerns and inquiries.

On numerous occasions, Government representatives have commented on complex policy and technical matters without sufficient subject knowledge or professional verification. Consequently, senior leaders have often been compelled to spend valuable time and resources managing controversies and correcting public misunderstandings rather than focusing on strategic governance priorities and reform implementation.

At the same time, opposition parties, despite their relatively limited parliamentary representation, have effectively capitalised on these weaknesses. Through selective presentation of facts, political narratives, and, at times, the introduction of racial or cultural dimensions into public discourse, they have succeeded in creating uncertainty among sections of the electorate.

Many middle-class voters who supported the NPP on the basis of its promises of professionalism, accountability, and reform have become increasingly frustrated by what they perceive as inconsistent responses and inadequately professional communication. As a result, only one year into a five-year mandate, the NPP finds itself at a critical juncture: possessing a strong electoral mandate and genuine reform aspirations, yet continuing to grapple with the practical challenges of governance, institutional transformation, and effective policy execution.

A significant concern is the apparent absence of a clearly articulated national action plan that establishes short-, medium-, and long-term objectives, accompanied by measurable performance indicators, transparent progress reporting, and independently verifiable outcomes. The publication of periodic progress reports, supported by factual data and a comprehensive public communication strategy, would enable citizens to assess achievements objectively and strengthen public confidence. In the absence of such a framework, misinformation can more easily gain traction, forcing the Government to expend considerable effort responding to criticism and political backlash rather than maintaining focus on reform delivery. This represents a largely avoidable distraction.

Ultimate success

Ultimately, the success of the NPP will depend not on the scale of its electoral victory, but on its ability to translate vision into measurable outcomes through competent leadership, merit-based appointments, professional administration, evidence-based decision-making, and disciplined governance. Sustained public confidence will be earned through demonstrable results rather than political rhetoric alone.

Positive and negative aspects of the NPP Government

Governance

Positive Aspects -Anticorruption push; institutional reform efforts

Negative Aspects – Concerns about indecisiveness in actions. Slow progress. Not following strong evidence first and actions next process. Lack of control on behaviour of public sector staff with vested interests. Overconfidence in own skills without seeking support from skilled professionals available in abundance

Economy

Positive Aspects – Early signs of stabilisation

Negative Aspects – Poor communication of professional explains of the progress achieved so far. Limited relief for citizens; unmet economic promises

Public Sector

Positive Aspects – Strong progress in power sector

Negative Aspects – Responding to Public Sector renumeration increases without attributing it to key performance indicators. Lack of following scientific process of implementing educational reforms. No sign of Local Government reforms

Politics

Positive Aspects – Broke higher social strata, traditional right-wing twoparty, dominance; broadened parliamentary representation slightly

Negative Aspects – Ideological compromises (what is promised and what is doing), unmet expectations due to impractical promises.

Public Trust

Positive Aspect – High level bench mark set as the initial mandate

Negative Aspects – Growing disappointment after first year due to slow actions having 2/3 majority in parliament and having public support in hand. Poor stakeholder management skills. Poor strategic communication skills.

Part II of this article further outlines strategic goals for Sri Lanka and presents global examples demonstrating how other countries have successfully achieved similar objectives.

KOKO joins Mastercard ‘Tap for Change’ campaign to support cancer care in Sri Lanka

KOKO, a leading ‘Buy Now – Pay Later’ platform, has joined the Mastercard ‘Tap for Change’ campaign, designed to turn everyday transactions into contributions towards long-term cancer care infrastructure in Sri Lanka. Through Mastercard contactless Tap and Go payments and KOKO-powered e-commerce transactions, consumers can help raise funds for the development of the Karapitiya Trail Cancer Hospital, in collaboration with the COC Foundation.

The campaign is built around the message ‘Tap for Change,’ highlighting how simple actions, such as tapping Mastercard or using it for shopping through the KOKO platform can support a national cause. The initiative aims to raise funds for the Karapitiya Trail Cancer Hospital and encourage wider adoption of contactless payments, to demonstrate how digital commerce can help create meaningful community impact.

Through its support, KOKO extends Mastercard’s Tap for Change campaign into the e-commerce and buy now, pay later ecosystem, granting its wide, digital-native customer base the opportunity to contribute through the purchases they make. KOKO’s platform enables users to shop online and pay later, making regular lifestyle purchases more accessible while connecting the transactions to a purpose-led initiative.

For Mastercard, the campaign reinforces the role of digital payments in enabling convenient and socially meaningful transactions. Encouraging consumers to use contactless Tap and Go payments, the initiative supports payment innovation and public participation in a cause focused on improving cancer care access in Sri Lanka.

The campaign is especially relevant for tech-savvy Gen Z and Millennial shoppers who frequently use KOKO, as well as Mastercard cardholders, retail merchants, and the broader Sri Lankan community seeking simple ways to support social causes. Linking routine spending to a healthcare infrastructure goal, makes the initiative of giving more accessible and seamlessly integrated into daily life.

Mastercard Country Manager – Sri Lanka and Maldives Sandun Hapugoda said, ‘Mastercard is delighted to welcome KOKO as a partner in support of the ‘Tap for Change’ campaign. This collaboration highlights the power of the digital commerce ecosystem to drive meaningful impact, enabling everyday transactions to contribute to long-term causes, such as strengthening cancer care infrastructure in the country.’

‘There are moments in life when business stops being about growth charts and numbers and becomes something far more human.’ commented KOKO Regional CEO Michael Sathasivam. ‘With Tap for Change, spending and giving now happen in the very same moment. Koko customers do not need to stop and think about charity, you simply live your life, and in doing so, you give,’ he further added.

SLT-MOBITEL Enterprise signs reseller partnership agreement with Starlink to deliver cutting-edge connectivity to businesses and SMEs

SLT-MOBITEL Enterprise has entered a landmark reseller partnership agreement with Starlink by SpaceX to offer cutting-edge connectivity to enterprises and SMEs in Sri Lanka. The agreement was formalised during an online signing ceremony held recently.

Starlink’s low-earth-orbit (LEO) satellite network delivers high-speed, low-latency connectivity to any location, particularly benefitting businesses operating in remote, rural, or geographically challenging areas where traditional networks are not reachable. This technology ensures fast, reliable connectivity in even the most difficult terrains.

With the agreement, SLT-MOBITEL now offers Starlink’s advanced satellite internet solutions directly to enterprise and SME customers throughout the country.

The agreement demonstrates SLT-MOBITEL’s leadership in driving the next era of Sri Lanka’s telecommunications landscape. With Starlink, the company further expands nationwide coverage, ensuring service continuity, and enabling reliable digital access for businesses by delivering resilient, fully managed enterprise connectivity to areas unreachable by terrestrial networks.

Businesses and SMEs gain access to uninterrupted operations with satellite-based redundancy, dramatically reducing downtime during disasters or network outages, protecting both revenue and operations. Starlink’s rapid deployment, with minimal infrastructure, provides swift activation in remote or temporary locations. Moreover, the global-grade performance supports mission-critical operations, IoT deployments, maritime and mobility solutions, and field operations that demand consistent, high-quality connectivity.

SLT-MOBITEL Chief Business Officer-Enterprise Business Lakmal Jayasinghe said: ‘The agreement opens a new chapter in delivering high-performance digital solutions for Sri Lanka’s digital ecosystem. Combining Starlink’s cutting-edge satellite technology with SLT-MOBITEL’s trusted services, we are empowering enterprises and SMEs with unparalleled connectivity. The agreement also reinforces our commitment to national digital inclusion, business continuity, and future-ready infrastructure, supporting Sri Lankan businesses to compete and thrive in a digital world.’

Budget records a surplus: Will it prevail?

The Government Budget recorded an overall surplus in the first quarter of 2026. This is significant because it occurred after about seven decades. Sri Lanka has not recorded an overall Budget surplus since 1955. According to provisional data, the Government’s overall Budget surplus was Rs. 116.35 billion (see Table 1).

However, in the second quarter of 2026, the currency came under pressure to depreciate, experiencing significant exchange-rate volatility. If the currency depreciates, Budget surpluses may not be sustainable.

Good news and bad news have emerged together, with positive and negative developments occurring simultaneously. How do we understand this dilemma? Can we find remedial measures to sustain a strong fiscal position while bringing exchange-rate volatility under control?

If the Budget surplus is driven by increased tax revenues and other non-tax revenues such as service fees, licensing fees, rents, and SOE profit transfers, excluding import tariffs, then that is positive. However, if import tariffs contribute significantly to revenue growth, then the pressure on the currency becomes easier to understand. This means that certain revenue policies that solve the Budget deficit problem may have created another problem in the monetary sector, adversely affecting external accounts.

If pressure on the currency continues, the Budget surplus achieved may not be sustained. To understand this point, let us look at one of the major external accounts, namely the current account. Over the past few years, from 2023 onwards, the current account recorded a positive balance. From the first quarter of 2025, however, the current account surplus declined through to the end of the first quarter of 2026. We recorded only a small surplus in the first quarter of 2026. However, in the second quarter, the current account has begun to post a small deficit. If that deficit is offset by dollar inflows (foreign currency inflows) recorded in the capital and financial account, especially through non-credit-based sources, we can still target higher economic growth.

In theory, when surpluses in the capital and financial account exactly offset a current account deficit, the overall Balance of Payments (BoP) remains in equilibrium. In that situation, there is generally no immediate pressure on the domestic currency to depreciate because substantial foreign currency is flowing into the country to meet the excess demand for foreign exchange. If the currency is under pressure to depreciate and is in fact depreciating, that implies that the above-mentioned balancing mechanism is not taking place.

All this means that economic progress ultimately depends on external accounts and the BoP, not merely on Budget surpluses. The BoP records all transactions between a country and the rest of the world. It determines whether the country is earning or receiving enough foreign exchange to pay for essential imports, service external debt, and ensure the stability of the domestic currency.

Geopolitical developments can certainly affect exchange-rate volatility. However, it is not true that geopolitical developments alone contributed to the recent exchange-rate volatility. In Sri Lanka’s recent situation, the depreciation pressure on the rupee appears to be more closely linked to domestic factors, particularly a rapid increase in private credit growth associated with the surge in vehicle imports.

In a cause-and-effect framework, the transmission mechanism is straightforward. Private credit expands rapidly as financial institutions finance vehicle purchases, leading to a significant increase in vehicle imports. Importers require more foreign exchange to pay overseas suppliers. As a result, demand for foreign currency rises relative to supply.

The outcome is that the rupee comes under depreciation pressure. This occurred previously when Ravi Karunanayake was Minister of Finance. As Sri Lanka has been recovering from a major external debt crisis, the monetary authorities and the Government should have exercised greater caution. Unwarranted private credit expansion should have been avoided.

In a small open economy such as Sri Lanka, large import-driven credit expansions can quickly affect the BoP and the foreign exchange market, especially when the imports have a high foreign-exchange content and are unable to add value and, in turn, generate foreign currency inflows, as is the case with motor vehicles.

Economic growth requires foreign exchange to import fuel, raw materials, machinery, and technology, as well as to repay external debt, while ensuring a stable exchange rate that encourages both domestic and foreign investment.

If the BoP is weak, growth becomes difficult regardless of the Government’s fiscal position.

BYD tops global automotive innovation ranking in historic first

Cementing its status as a global New Energy Vehicle (NEV) trailblazer, BYD has topped the global rankings for Most Innovative Automotive Group in the Automotive INNOVATIONS Report 2026 published by Germany’s Centre of Automotive Management (CAM) – the first time in the study’s 21-year history that a Chinese automaker has claimed the top position.

BYD secured the ranking with an innovation index score of 157 points, ahead of Volkswagen Group at 143 points and Mercedes-Benz at 134 points.

The ranking is published annually by the CAM, one of the automotive industry’s most rigorous independent benchmarks, which evaluated over 860 individual innovations across 36 global automakers and more than 100 brands for its 2026 report.

Innovations are assessed across Electric Drive, Autonomous Driving and Advanced Driver Assistance Systems (ADAS), Infotainment and Connectivity, scored on maturity, originality, customer benefit, and degree of innovation.

For more than two decades, the top of that ranking has been occupied by European automotive groups, making BYD’s first-place finish a decisive marker of how the global automotive innovation landscape has shifted.

BYD’s score reflects a technology portfolio built entirely in-house – spanning batteries, electric motors, electronic controllers, and automotive-grade semiconductors – and encompassing 55 innovations in the study period, including 18 world premieres, the highest individual count in the entire 2026 report.

John Keells CG (JKCG) Auto CEO Charith Panditharatne said: ‘BYD’s historic achievement in the CAM ranking underscores their undisputed leadership in the new energy space. It also validates what we have always known-BYD is defining the global future of mobility. As their official local partner, JKCG Auto is incredibly proud to bring the world’s most innovative automotive brand to Sri Lanka, giving more Sri Lankans access to unparalleled new energy technology.’

Among the key contributors were the second-generation Blade Battery, which enables charging from 0 to 80% in under five minutes, the Super e-Platform, operating on a 1000V architecture with megawatt-level flash charging capability, and the God’s Eye ADAS suite, a tiered autonomous driving system powered by BYD’s proprietary Xuanji A3 4nm chip. BYD also won the Most Innovative Volume Brand category, alongside Mercedes-Benz, which claimed Most Innovative Premium Brand.

Notably, three Chinese automakers – BYD, XPeng, and Geely – now occupy three of the top six positions in the global ranking, a result that points to a broader structural shift in where automotive innovation is being driven, as the industry’s centre of gravity continues to move towards NEVs.

BYD has led new energy passenger vehicle sales in China for 10 consecutive years and recorded global NEV sales of over 4.6 million units in 2025, the highest of any automaker in the world.

HUTCH powers BestWeb.LK 2026 as official telecommunication partner

HUTCH Sri Lanka has partnered with BestWeb.LK 2026 strengthening its role as an enabler of Sri Lanka’s digital ecosystems recognising innovation, and digital excellence.

Organised by the LK Domain Registry, BestWeb.LK is Sri Lanka’s premier web design competition and has been conducted annually since 2009. The 2026 edition marks its sixteenth year, continuing its mission to recognise outstanding websites operating under the ‘.lk’ domain while encouraging businesses, developers, designers, institutions, and digital creators to raise the standard of Sri Lanka’s online presence.

As part of this strategic collaboration with the LK Domain Registry, HUTCH is strengthening its commitment to power Sri Lanka’s business ecosystems across every industry segment from startups, SMEs to large enterprises and public institutions.

BestWeb.LK has played a significant role in inspiring Sri Lankan businesses and institutions to strengthen their digital presence and embrace innovation. The HUTCH collaboration as the Official Telecommunication Partner, powers the national platform that recognises and celebrates digital excellence from across the country. It is keeping in line with the company’s mission of a role that extends beyond connectivity, committed to power Sri Lanka’s evolving digital landscape by enabling businesses, communities, and innovators to thrive in the digital era.