Category: Daily Financial Times

The Central Bank of Sri Lanka (CBSL) yesterday cautioned that all transactions between residents in the country must be conducted in Sri Lankan Rupees, in line with the Central Bank of Sri Lanka Act, No. 16 of 2023.

In a statement, the CBSL stated that it noticed certain instances where residents in Sri Lanka transact within the country in foreign currency, rather than in Sri Lanka Rupees. ‘In connection with this, the CBSL wishes to clarify that according to the provisions of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBSL Act), all transactions executed between or among residents in Sri Lanka shall be made in Sri Lankan Rupees, unless otherwise authorised by the CBSL for the purposes of the Foreign Exchange Act, No. 12 of 2017.’

It firmly stressed to merchants and the general public that the CBSL ‘has not granted any authorisation’ for local merchants to receive any payments from its local customers to the credit of any Foreign Currency Account by converting Sri Lankan Rupees into foreign currency, including payments via Electronic Fund Transfer Cards (i.e. credit or debit cards).

According to the CBSL, any resident making payments in foreign currency to a local merchant, or any merchant accepting such payments without authorisation, commits an offence under the CBSL Act and shall, upon conviction after summary trial before a Magistrate, be liable to face penalties of up to Rs. 25 million, imprisonment of up to three years, or both.

The CBSL urged the general public and the business community to strictly adhere to these statutory requirements to avoid severe legal consequences.

Sri Lanka is ready to catalyse the next wave of impact investment by aligning gender inclusion with climate resilience, said Singapore-based Impact Investment Exchange (IIX) Chief Operating Officer Angela Ng yesterday.

Addressing stakeholders at the first-ever Lanka Impact Investment Summit (LIIS) 2026 in Colombo, she said the two-day discussions signalled a turning point in the country’s sustainable finance journey.

‘The Summit sends a very strong signal that Sri Lanka is ready to shape its economic future with the right intention,’ she said, noting that policymakers, investors, and entrepreneurs were now ‘a step closer to bringing this vision to life.’

Highlighting Sri Lanka’s context as a climate-vulnerable island nation, Ng noted that women play a critical role across agriculture, fisheries, and other sectors vital to food security and climate adaptation, yet remain underrepresented in access to capital.

‘Women make up more than half of the population, yet remain severely underrepresented,’ she said, adding that they are central to industries that drive national resilience, particularly in the face of floods, extreme weather, and pressures on the blue economy.

She pointed out that gender equality and climate resilience must be addressed together. ‘We cannot talk about the Orange Movement, which is Sustainable Development Goal (SDG) 5, without talking about green or blue. Gender equality and climate resilience are not conversations we can have separately. They are interlinked,’ she explained.

Ng stressed that the key challenge facing Sri Lanka is not the availability of capital, but how it is mobilised. ‘The question is not whether capital exists-because it does. The question is how we are really catalysing it forward,’ she said.

She said the newly signed partnership between IIX and the LIIN is aimed at strengthening Sri Lanka’s ecosystem so that ‘gender inclusion, climate resilience, and economic growth can move together,’ particularly in rural and emerging sectors.

She added that Sri Lanka has the potential to demonstrate how capital markets can be aligned with resilience and inclusion, positioning itself as a regional hub for South Asia.

In a further boost, Ng announced that Sri Lanka will host the next Orange Forum in October, the flagship global convening of the Orange MovementS, bringing international investors and development partners back to Colombo.

Placing Sri Lanka within a broader global framework, Ng outlined IIX’s 17-year track record in designing financial instruments that serve underserved communities, smallholder farmers, and rural entrepreneurs without deepening inequality.

Headquartered in Singapore, IIX has mobilised over $ 150 million in capital and launched seven ‘Orange Bonds’ – women-focused, tradable instruments, listed on the Singapore Exchange, as well as the world’s largest Orange Bond on the Indonesian Stock Exchange. The organisation operates across Indonesia, Vietnam, the Philippines, Cambodia, India, Sri Lanka and Bangladesh.

Under the Orange MovementS, named after SDG 5 on gender equality, IIX aims to mobilise $ 100 billion by 2030 to impact 100 million women and underserved communities globally. The next phase includes the launch of a $ 1 billion Orange Private Fund, with a targeted first close of $ 250 million and a linked $ 250 million technical assistance facility focusing on South and Southeast Asia and the Pacific.

‘It is no small feat,’ Ng said of the global ambition. ‘We need everybody in the room to see how you can play a role with us.’

As Sri Lanka seeks to accelerate economic recovery and climate adaptation, she said that the path forward requires building the economy ‘with women and underserved communities and making it happen together.’

Bangladesh has secured exemptions for some clothes and textiles that are made with US-produced materials, as part of a new agreement announced on Monday.

As part of the deal, Washington will also cut its tariffs on Bangladesh from 20% to 19%, in exchange for Dhaka to open its markets to a wider range of American goods.

The apparel industry forms the backbone of Bangladesh, which is the world’s second largest exporter of clothes after China.

Bangladesh has been in long-drawn talks with the White House after US President Donald Trump imposed sweeping tariffs on global trading partners in April last year.

The White House said in a joint statement between the sides that the agreement will strengthen the countries’ economic ties and offer both ‘unprecedented access’ to each market.

It said the US will lower its tariff rate on Bangladesh and will also identify certain clothing and textile goods from the country to enter the US free of tariffs.

The goods include those produced with American cotton and man-made textiles, the statement said. The volume of these will be determined by how much textiles the US exports to Bangladesh.

The clothing sector accounts for more than 80% of Bangladesh’s total export revenue and employs around four million workers.

In exchange, Bangladesh has agreed to provide ‘significant preferential market access’ to a host of American agricultural and industrial goods. These include opening up its markets to more US chemicals, medical devices, car parts, soy products and meat, said the White House.

The Colombo stock market yesterday ended a two-session decline to close marginally on the up.

The ASPI ended up 0.02% or 4.59 points to 23,655.68 and the S and P SL20 was up 0.09% or 6.11 points at 6,611.52.

Market turnover was over Rs. 3.35 billion on nearly 170.9 million shares traded and foreign investors were net sellers on a net outflow of Rs. 64 million.

First Capital Research said the bourse showed a mildly positive but cautious tone during the session. Both indices experienced early volatility with a mid-morning dip, followed by a gradual recovery and sideways movement into the close.

Top positive contributors to the ASPI were NHL, CFIN, CARG, JKH and LLUB. Share prices of 125 companies declined during the session, while only 98 recorded positive contributions.

HNW participation was limited, and retail investors’ participation also remained subdued, leading to low turnover.

The capital goods sector led the daily turnover with a share of 20%, followed by the food beverage and tobacco, and diversified financials sectors collectively contributing 32%.

CT Smith Securities said Samson International emerged as the top contributor to turnover with Rs. 220 million, followed by UB Finance with Rs. 172 million and Sierra Cables with Rs. 149 million turnover.

Asia Securities Research said the ASPI gained on price gains in counters such as LIOC, JKH, SUN, SAMP, COMB, and HNB. NHL, HNBX, and CFIN emerged as the major positive contributors to the index. Market breadth remained negative, with 105 counters closing in green and 132 counters closing in red.

First Capital Holdings PLC, has recorded a Total Comprehensive Income of Rs. 3.23 billion for the nine months ended 31 December 2025, compared to Rs. 4.53 billion in the corresponding period of the previous year.

For the third quarter of 2025/26, the Group reported a Total Comprehensive Loss of Rs. 0.17 billion, after accounting for a dividend tax expense of Rs. 0.41 billion.

The Group’s Net Income before Operating Expenses for the nine months of 2025/26 amounted to Rs.6.33 billion compared to Rs. 7.69 billion reported in the corresponding period of the previous year. Trading income was primarily driven by the Primary Dealer and Corporate Dealing Securities divisions, reinforcing the Group’s positioning across fixed income and equity market segments.

The Primary Dealer division reported a Profit after Tax of Rs. 1.64 billion for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 2.45 billion). The results include trading gains on the Government securities portfolio of Rs. 1.66 billion and net interest income of Rs. 1.41 billion (1st nine months of 2024/25 – trading gains of Rs. 3.18 billion and net interest income of Rs. 1.31 billion), reflecting movements in yields and trading conditions during the period.

The Corporate Finance Advisory and Dealing Securities division recorded a Profit after Tax of Rs. 1.86 billion for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 1.94 billion). The business unit reported total trading gains of Rs. 2.33 billion on its equity portfolio, compared to Rs. 2.23 billion in the corresponding period of the previous year, supported by market participation and portfolio positioning.

The Wealth Management division reported a Profit after Tax of Rs. 78.1 million for the nine months (1st nine months of 2024/25 – Profit after Tax of Rs. 90.1 million). Assets under Management stood at Rs. 96.4 billion as at 31 December 2025, compared to Rs. 115.9 billion as at 31 March 2025, reflecting market conditions and client portfolio adjustments.

The Stock Brokering division recorded a Profit after Tax of Rs. 166.3 million for the nine months compared to Rs. 39.5 million in the corresponding period of the previous year, supported by increased trading activities.

Chairman Rajendra Theagarajah said: ‘The operating environment during the period was shaped by shifts in interest rates, capital market activities, and fiscal adjustments. Against this backdrop, the Group’s performance reflects the structural strength of its capital markets platform and its ability to generate income across multiple market cycles while maintaining financial discipline.’

Managing Director/CEO Dilshan Wirasekara said: ‘Our priority during the period was to manage each business line with a clear focus on risk, liquidity and execution. Improved performance in stock brokering and consistent contributions from corporate finance reflect our ability to respond to market conditions while aligning capital deployment with client and market opportunities.’

India yesterday rejected references to Indian Prime Minister Narendra Modi in investigative material linked to convicted sex offender Jeffrey Epstein, even as protests broke out in New Delhi and the Opposition demanded an explanation in Parliament.

Hundreds of demonstrators gathered at Jantar Mantar in the capital after media reports highlighted an email in a newly released tranche of US documents that allegedly referred to Modi and his July 2017 official visit to Israel. The protest was organised by the Indian Youth Congress, the youth wing of the Opposition Indian National Congress.

India’s External Affairs Ministry said it had ‘seen reports of an email message from the so-called Epstein files that has a reference to the Prime Minister and his visit to Israel.’

‘Beyond the fact of the Prime Minister’s official visit to Israel in July 2017,’ the Ministry said, ‘the rest of the allusions in the email are little more than trashy ruminations by a convicted criminal, which deserve to be dismissed with the utmost contempt.’

The documents form part of a broader release of material connected to Epstein, who was convicted in the US of soliciting prostitution and died in a New York jail in 2019. The files reportedly contain names and communications involving political and business figures from several countries. None of those named have been charged with offences related to Epstein’s activities.

In New Delhi, protesters accused the Government of failing to respond transparently. ‘We want answers. The silence from the Prime Minister’s Office is unacceptable,’ one Youth Congress organiser said at the rally.

Mumbai Youth Congress President Zeenat Shabrin said the controversy was affecting India’s international standing and called for the Prime Minister to clarify the references.

The Opposition Congress party has sought an adjournment motion in the Lok Sabha to enable debate on the matter. Parliamentary exchanges have since turned heated, with Opposition members questioning the Government’s response and pressing for further clarification.

South Africa and Afghanistan played out one of the most memorable matches in the T20 World Cup history, with the Proteas edging past their opponents after two super overs in Ahmedabad.

After the first super over was tied, David Miller’s 16 from four balls helped South Africa post 23-0 in the second one before Afghanistan fell four runs short in a remarkable game, which was decided by the finest of margins.

South Africa posted 1876 after half-centuries from Quinton de Kock and Ryan Rickelton but Rahmanullah Gurbaz’s 84 from 42 balls and cameos from Azmatullah Omarzai and Rashid Khan, who added 22 and 20, kept a resolute Afghanistan in the chase.

Needing 13 runs from the final over with one wicket in hand, the Afghans were handed a lifeline through two noballs from Kagiso Rabada. However, with two required from three balls, Fazalhaq Farooqi was run out looking to scamper a second, forcing the match to go to a super over.

There was no winner after the first super over as South Africa matched Afghanistan’s 17-run effort, despite losing Dewald Brevis, but they came out on top in the second attempt.

It is the third time a men’s T20I has required multiple super overs to be settled after India beat Afghanistan following two super overs in January 2024, while Netherlands beat Nepal after three super overs in June last year. This was a repeat of the 2024 T20 World Cup semi-final where the Proteas came out on top, but this time, Afghanistan offered them a far sterner test than in Trinidad, where they were bundled out for 56.

After being sent in to bat by Afghanistan Captain Rashid, South Africa opener De Kock reached his 50 in 34 balls, while Rickelton got his half-century in just 23 deliveries.

Rashid then removed De Kock for 59 off 41 and Rickelton for 61 off 28 in the same over, but only after the pair had put on a 114-run second-wicket stand to guide them to a competitive total.

Chasing 188 to win, Afghanistan raced to 50-0 in four overs before Lungi Ngidi halted their momentum with the wickets of Ibrahim Zadran and Gulbadin Naib in the fifth over.

Despite the setback, Rahmanullah kept the Afghans firmly in the contest, powering to a half-century in 26 balls and, by the time he departed, they needed only 67 from 45 deliveries. Noor Ahmad’s nine-ball 15 then took the game to the tie-breaker, where Azmatullah’s hitting carried Afghanistan to 17-0, only for Tristan Stubbs to clear the rope in the final ball of South Africa’s first super over to tie the match again.

It was then South Africa’s turn to set Afghanistan a target in the second super over and Rahmanullah’s 18 off four proved in vain as spinner Keshav Maharaj took two wickets, including one off the final ball, with the Afghans finishing on 19-2, having needed 24 to win.

The Proteas’ win adds to their 57-run victory over Canada in their opener, while Afghanistan’s chances of reaching the knockout stages are as good as over after back-to-back defeats.

South Africa next face New Zealand at the same venue on Saturday, while Afghanistan take on the United Arab Emirates in Delhi on Monday.

Defence Deputy Minister Major General (Retd.) Aruna Jayasekara attended the World Defense Show (WDS) 2026, in Riyadh, Kingdom of Saudi Arabia, following an official invitation.

The WDS, currently underway from 8 to 12 February, has firmly established itself as a premier global platform for defence and security. This major international event convenes defence industry leaders, senior military officials, and high level Government representatives across the globe, facilitating vital dialogue and collaboration at the highest strategic level.

The event showcases cutting-edge advancements and innovations in the air, land, sea, space, and security domains, while promoting collaboration, business development, and discussions on the future integrated defence solutions.

During the exhibition, Major General (Retd.) Jayasekara toured the extensive exhibition facilities and halls, which feature participation from more than 1,486 entities representing 89 countries. The exhibition also includes the presence of numerous Government institutions and leading national and international defence companies.

In addition, the Deputy Minister will hold several bilateral meetings with high-level Government officials and senior military leadership. These discussions will focus on identifying concrete opportunities to deepen defence cooperation and further strengthen the broader bilateral partnership.

In the wake of surging demand for New Energy Vehicles (NEVs) in Sri Lanka, BYD and its authorised distributor John Keells CG Auto have opened the country’s largest purpose-built body shop and accident repair centre dedicated exclusively to BYD, and their premium sub-brand DENZA.

Located in Seeduwa, the new facility has taken over the former Formula World site and represents a significant milestone in BYD and DENZA’s ongoing commitment to strengthening their after-sales infrastructure. Capable of accommodating over 100 vehicles simultaneously, the Seeduwa Body Shop substantially increases repair capacity and alleviates congestion at existing service points across the Western Province.

The facility is strategically designed as a dedicated, high-throughput solution for collision repairs and complex bodywork, ensuring BYD and DENZA customers have access to specialised accident repair services with faster turnaround times. This expansion addresses the growing need for efficient body shop services as BYD’s vehicle population continues to expand rapidly across Sri Lanka.

John Keells CG Auto Chief Executive Officer, Charith Panditharatne said: ‘Our Seeduwa Body Shop represents a major step forward in our after-sales expansion. With these investments, we aim to significantly expand service capacity, improve service consistency, and ensure JKCG customers receive seamless support with faster turnaround times for accident repairs and bodywork.’

The opening of the Seeduwa facility reflects BYD’s conscious effort to respond to customer needs more effectively and ensure service standards align with the brand’s growing market presence. As the largest dedicated body shop for BYD vehicles in Colombo, it strengthens the overall ownership experience and reinforces the brand’s commitment to long-term customer satisfaction.

The Seeduwa Body Shop opening is part of BYD’s broader after-sales expansion, which includes the recent launch of its largest service centre in Wattala, supporting the full range of BYD and DENZA passenger vehicles.

An injury-hit Australian side kicked off their T20 World Cup campaign with a comprehensive win by 67 runs against Ireland in a Group B match played at the R. Premadasa International Cricket Stadium yesterday.

Chasing down 183 at the Premadasa wasn’t easy by any stretch, and Ireland were left without Captain Paul Stirling, who seemed to have aggravated an earlier injury on the field. Ireland was then opened up by Nathan Ellis and Matthew Kuhnemann, as they slipped to 27-4 in no time. It was then a mere formality even as Lorcan Tucker (24 off 27 balls) and George Dockrell (41 off 29 balls, 3 fours, 2 sixes) showed some fight. But both came unstuck in front of Adam Zampa, and Ireland eventually crashed to 115 all-out, slipping to their second straight loss.

Ellis and Zampa shared eight wickets between them as the Australians enjoyed an easy day in the field. Ellis was the star of this all-round Australia bowling effort, scalping up his best T20I figures of 4/12.

Earlier, Australia’s total of 182-6 was built around solid contributions from the top order before Marcus Stoinis’ 29-ball 45 (2 fours, 1 six) provided the final impetus.

Without their Captain Mitchell Marsh, Josh Inglis was pushed up the order to partner Travis Head, who took over the captaincy for this game. The new pair though struggled with the running and the stand-in captain was run out for 6. Inglis made a 17-ball 37 (6 fours, 1 six), Cameron Green a 11-ball 21 (1 four, 2 sixes), and Matt Renshaw finished with a 33-ball 37 (2 fours). The innings though needed a facelift and it came through Stoinis’ 29-ball 45.

Ireland was decent with the ball, but they weren’t backed up in the field for the second straight game in a row and were left to chase an above-par score in what was a must-win game for them.

Australia’s 67-run win will boost their Net Run Rate, having dominated their opening contest. – [ST]

Scores:

Australia 182-6 (20) (Josh Inglis 37, Cameron Green 21, Matt Renshaw 37, Marcus Stoinis 45, Mark Adair 2/44)

Ireland 115 (16.5) (Lorcan Tucker 24, George Dockrell 41, Nathan Ellis 4/12, Adam Zampa 4/23)