Category: Daily Financial Times

Sri Lanka and the European Union (EU) will hold the 27th Session of the EU-Sri Lanka Joint Commission in Colombo on 12 February 2026.

This high-level meeting will bring together senior officials from both sides to review and strengthen partnership across several areas including governance, human rights, trade, development cooperation, and other bilateral and regional priorities.

The Joint Commission will be Co-Chaired by Foreign Affairs, Foreign Employment and Tourism Ministry Secretary Aruni Ranaraja and European External Action Service (EEAS) Acting Managing Director for Asia and the Pacific Paola Pampaloni.

The visiting EU delegation will also meet with senior Sri Lankan dignitaries to discuss collaborative approaches and concrete next steps to strengthen the ongoing partnership.

Anantara Peace Haven Tangalle Resort has announced the appointment of Frederik Vanden Borre as General Manager, effective 15 January 2026.

Borre will oversee the resort’s strategy and day-to-day operations, focusing on enhancing guest experience, strengthening commercial performance, maintaining brand standards, and supporting team development across the property.

After joining Minor Hotels in 2022 as Executive Assistant Manager at Anantara Mui Ne Resort, Borre later served as Acting General Manager and led the property through a full refurbishment. He then assumed the role of General Manager at Avani Hai Phong Harbour View Hotel in mid-2022, before returning to Anantara Mui Ne Resort in August 2024 as General Manager.

A German national, Borre brings more than two decades of hospitality experience across Europe, Africa, Asia, and the Caribbean. He began his career at the iconic Hotel Vier Jahreszeiten in Hamburg, Germany, before taking on his first international assignment as Assistant Food and Beverage Manager with Raffles in St. Vincent and the Grenadines. He subsequently held senior food and beverage leadership roles with Kempinski Hotels across multiple regions, including at landmark properties Çiragan Palace Kempinski Istanbul and Emirates Palace in Abu Dhabi before joining The Peninsula Shanghai as Executive Assistant Manager overseeing food and beverage operations.

Minor Hotels Vice President – Operations (Asia) Nicholas Smith said: ‘Frederik brings a strong operational focus shaped by diverse international experience. His leadership approach aligns well with Anantara Peace Haven Tangalle Resort, and we are confident he will support the resort’s ongoing commitment to heartfelt hospitality and unforgettable guest experiences.’

Borre said: ‘It is a privilege to join Anantara Peace Haven Tangalle Resort at this important moment. The destination holds a distinct character, and I look forward to working closely with the team to build on the resort’s established culture and guest experience.’

Located on the rocky shores of southern Sri Lanka, Anantara Peace Haven Tangalle Resort is a luxury beachfront hideaway renowned for its award-winning Ayurveda and impeccable dining experiences. The resort is regularly recognised as a top luxury destination by international publications and is renowned for its culturally connected encounters in a naturally beautiful destination.

Sri Lanka has officially rolled out its Digital Nomad Visa (DNV), a new long-stay residence facility aimed at attracting foreign professionals who work remotely for overseas employers or clients, as part of a broader strategy to position the country as a preferred digital and lifestyle destination.

The initiative, now live on the official website of the Department of Immigration and Emigration, allows eligible foreign nationals to live and work remotely from Sri Lanka for up to one year, with the option of annual renewal.

Authorities say the program is designed to contribute to the national economy through extended stays, increased tourism expenditure and the inflow of foreign currency, while also promoting knowledge exchange within the digital and ICT sectors.

Under the scheme, foreign nationals aged 18 and above who are engaged in remote employment, freelancing or who own businesses registered outside Sri Lanka and serving foreign clients are eligible to apply. Spouses and dependents may also be included in the application. Applicants are required to demonstrate a minimum monthly remittance of $ 2,000 for the main applicant, with an additional $ 500 per month for each dependent beyond two.

Applicants must submit a comprehensive set of documents, including a valid passport, medical and police clearance certificates, proof of international health insurance, evidence of income remittance and a recommendation from the Digital Economy Ministry. Visa applications are processed through the Residence Visa Division of the Department of Immigration and Emigration, where documentation is evaluated prior to approval and endorsement.

The Digital Nomad Visa is issued for a period of one year, with extensions subject to compliance requirements, including proof of tax registration with the Inland Revenue Department. Visa fees are set at $ 500 per year for the main applicant, spouse and each dependent.

Visa holders are entitled to reside legally in Sri Lanka for up to 12 months, open and maintain personal bank accounts, enter into property rental or lease agreements and enrol dependent children in international or private schools. They are also permitted to access local telecommunications and utility services and participate in co-working spaces, ICT programs and tourism-related events organised by the Government or private sector.

However, the authorities have emphasised that Digital Nomad Visa holders are not permitted to engage in local employment and all income must be derived from foreign sources.

Applicants are also required to comply with Sri Lanka’s immigration, tax and legal obligations, refrain from political activities and notify the Department of Immigration and Emigration of any changes in employment, income or dependent status within 30 days.

The visa may be terminated either at the request of the applicant, subject to advance notice requirements, or by the Department in cases of non-compliance, failure to meet income criteria or concerns related to legal or national security risks.

A press conference and ceremonial event has been organised by the Tourism Ministry and the Sri Lanka Tourism Promotion Bureau (SLTPB) to mark the issuance of Sri Lanka’s first Digital Nomad Visa and to officially welcome the inaugural visa holder on Monday (16) at the Bandaranaike International Airport (BIA). The event is expected to be attended by the Deputy Ministers of Tourism, Digital Economy and Public Security, along with senior State officials.

The move is intended to generate national and international visibility for the initiative and signal Sri Lanka’s readiness to compete in the growing global digital nomad market.

Spin heavy Pakistan unsettled USA for 158-8 to give their side a win by 32 runs – their second successive win in the ICC Men’s T20 World Cup match which was played under lights for the first time at the SSC grounds yesterday.

Pakistan went with five spinners yesterday, replacing Salman Mirza with Usman Tariq, and they came to the party to derail USA’s chase. Pakistan’s total of 190-9 was a formidable one to begin with led by the efforts of opening bat Sahibzada Farhan who scored 73 off just 41 balls (6 fours, 5 sixes).

Thanks to Player of the Match Farhan who with help from Babar Azam and Shadab Khan, Pakistan scored their highest total at a T20 World Cup since they made 201-5 against Bangladesh in 2016. The USA found a way back into the game through Shadley van Schalkwyk, who took two wickets in one over to slow the scoring. However, Babar and Farhan joined forces to build a massive 81-run partnership off 52 balls, and looked set to post a huge total.

Towards the end, Shadab provided a late boost by smashing a quick-fire 30 runs in only 12 balls (4 fours, 1 six) to push the total closer to the 200-run mark. The momentum shifted once more when Van Schalkwyk returned to the attack, claiming two more vital wickets to finish with excellent figures of 4/25 as Pakistan lost five wickets in 10 balls. His performance perfectly matched his clinical bowling against India where he had similar figures and helped limit the damage. But with the scoreboard pressure mounting, USA had a tall chase in hand.

The pitch was a good one and USA started well in the powerplay. However, once Shadab Khan came into the attack and started applying the squeeze along with Mohammad Nawaz, the run chase came to a stall. In the six overs after the powerplay, USA managed just 29 while losing two wickets. It was the phase where the game was decided and while Shubham Ranjane batted well for his half-century (51 off 30 balls, 3 fours, 3 sixes) later on, the win was out of sight by then. – [ST]

Scores:

Pakistan 190-9 (20) (Sahibzada Farhan 73, Babar Azam 46, Shadab Khan 30, Shadley van Schalkwyk 4/25)

USA 158-8 (20) (Shayan Jahangir 49, Milind Kumar 29, Shubham Ranjane 51, Shadab Khan 2/26, Usman Tariq 3/27)

Recently, a post went viral quoting Elon Musk from a podcast, suggesting that AI could make learning skills ‘unnecessary.’ A closer reading shows his remarks were predictive, not definitive: some hard skills may be overtaken by AI, but learning itself will not become irrelevant. While this thought unsettles many, the reality is clear. Hard skills can be automated; soft, human-centred skills cannot. I am often asked, as AI advances across boardrooms, classrooms, and workplaces: if machines can think and create, do human skills still matter? The answer is unequivocal-AI will not make learning unnecessary; it will make it indispensable, and human-centred soft skills cannot be fully replaced.

Skills matter

AI and Tech is not eliminating the need for skills-it is redefining which skills matter. For much of the last century, education and professional development focused on acquiring a fixed body of knowledge and applying it repeatedly over a career. That model is becoming obsolete. AI systems can process vast amounts of information, draft reports, run analyses, and automate routine decision-making far faster than humans. Skills based purely on repetition or recall are increasingly being augmented-or replaced-by machines. Yet this does not diminish the role of people. On the contrary, it elevates it. In an AI-enabled world, uniquely human capabilities-judgment, ethical reasoning, contextual understanding, relationships and accountability-become more valuable, not less. AI can generate options, but humans must decide which path to take and bear responsibility for the consequences. This is particularly true at leadership and board levels, where decisions carry strategic, social, and reputational weight that no machine can fully comprehend. Moreover, as automation and AI take over routine tasks, uniquely human capabilities-soft skills-become more important, not less. Employers want people who can think critically, build relationships, show resilience, solve problems, engage effectively, and exercise judgment in complex situations. Soft skills, therefore, cannot be replaced by AI. Hard skills, on the other hand, can increasingly be automated.

The real shift

The real shift is from learning fixed skills to learning how to learn. As technology advances at unprecedented speed, the shelf life of technical skills is shrinking. Directors, executives, and professionals can no longer rely solely on qualifications earned decades ago. Continuous learning, adaptability, resilience, the ability to question meaningfully, and intellectual curiosity are becoming core competencies. As Musk points out in the podcast , college or university may no longer be required solely to acquire specific skills, but higher education still holds value for social development, career opportunities, building resilience, networking and broad intellectual exposure. Professional qualifications such as CIMA, ACCA, CIM or CFA that develop critical technical skills and problem-solving abilities will integrate most effectively with technology and AI.

Conclusion

AI is redefining what it means to be skilled. The ability to ask the right questions of AI systems, critically interpret their outputs, and recognise their limitations is now essential. Digital literacy is no longer just about coding; it is about understanding how technology shapes decisions, incentives, and outcomes, and knowing when to rely on machines versus human judgment. Equally important are skills AI cannot replicate: leadership, empathy, negotiation, resilience , relationships, creativity, and the ability to align diverse stakeholders behind a shared purpose. In times of disruption-economic, technological, or geopolitical-organisations do not turn to machines for moral guidance or strategic reassurance. Countries turn to people. For boards and institutions, this shift carries a clear implication: investment in human capital must not slow because of AI; it must accelerate and evolve. Certainly, some job-specific skills may become redundant as AI takes over routine tasks. But AI will not replace skilled people-it will replace people and organisations that stop learning. In the years ahead, learning and CPD will no longer be a phase of a professional career. It will be the career itself. In the final analysis, blind trust in algorithms can be as dangerous as ignoring them altogether. Human skills will therefore remain relevant-and essential.

Fitch Ratings has assigned Aitken Spence Hotel Holdings PLC a first-time National Long-Term Rating of AA+(lka) with a Stable Outlook, citing strong support from its parent alongside risks stemming from its exposure to the Maldivian economy.

In a rating action commentary issued yesterday, Fitch Ratings said the rating reflects high operational and strategic incentives for support from parent company Aitken Spence PLC, under its Parent and Subsidiary Linkage criteria, although legal incentives were assessed as low.

Fitch assessed Aitken Spence Hotel Holdings’ Standalone Credit Profile at AA-(lka), supported by cash flow from its hotel portfolio of 15 owned and four managed properties, mainly in the Maldives and Sri Lanka, together with low leverage and adequate funding access. These strengths were partly offset by the company’s high exposure to the weakening Maldivian economic environment.

The rating agency also assigned a National Long-Term Rating of AA(lka) to the company’s proposed senior unsecured debentures of up to Rs. 5 billion. The debentures are rated one notch below the issuer rating due to subordination to secured bank debt, which accounts for the majority of the company’s borrowings. Proceeds are expected to be used to settle existing bank debt, repay amounts due to Aitken Spence PLC and fund capital expenditure.

Fitch said Aitken Spence Hotel Holdings contributes around 65% of Aitken Spence PLC’s EBITDA and over 50% of group assets over the medium term. It expects the hotel group’s EBITDA to grow at a compound annual rate of about 10% between the financial years ending March 2026 and March 2029, driven by refurbishment-related capital expenditure, higher room rates and improved margins. The company’s US dollar-pegged cash flows were also cited as providing operational and financing flexibility during Sri Lanka’s recent economic crisis.

Operational incentives for parent support were assessed as high, reflecting board and management overlap and a shared brand, while legal incentives were deemed low as guaranteed debt is expected to decline over time. Fitch noted that Aitken Spence PLC had provided intragroup liquidity support, including advances of Rs. 2.7 billion to the hotel subsidiary as at the end of the financial year 2025.

Fitch also factored in indirect support from ultimate parent Melstacorp PLC, which owns 51% of Aitken Spence PLC. While Melstacorp’s strategic incentives to support Aitken Spence PLC were assessed as medium, Fitch expects support to flow through the group if required, given the hotel business’ contribution to overall earnings.

Hotel operations remain the primary cash flow driver, with the Maldives accounting for about 70% of Aitken Spence Hotel Holdings’ EBITDA. Fitch expects tourist arrivals to the Maldives to grow by mid-single digits in 2025, following 9% growth in 2024, supported by recovering demand from China and Russia. EBITDA margins are forecast to average around 25% over the period from FY26 to FY29.

However, Fitch highlighted a cash flow and debt mismatch, as most earnings are generated in the Maldives while borrowings are largely with Sri Lankan banks. This exposes liquidity to potential tightening of Maldivian currency regulations in the event of sovereign stress. While recent foreign currency conversion requirements in the Maldives exempt businesses with offshore debt servicing needs, Fitch said risks remain over the rating horizon.

Despite higher refurbishment-related capital expenditure, Fitch expects leverage to remain moderate, with EBITDAR net leverage forecast at 2.5 times by the end of FY26 and 2.9 times by FY27. Capital expenditure is expected to rise to around 11% of revenue in FY26 and 13% in FY27, funded through a mix of new debt, operating cash flow and existing cash balances.

As at the end of FY25, Aitken Spence PLC held a cash balance of around Rs. 43 billion, including Rs. 10 billion at the hotel subsidiary level. Fitch said this, together with forecast free cash flow and strong access to domestic banks, supports upcoming term loan repayments and the rollover of short-term working capital facilities.

Aitken Spence Hotel Holdings owns and manages hotel properties in Sri Lanka, the Maldives, India and Oman, with an inventory of over 2,600 rooms across its portfolio as at FY25.

The Sri Lanka Chamber of Small and Medium Industries (SLCSMI) yesterday unveiled an eight-point ‘Future SME Sector Development Roadmap’, outlining a comprehensive strategy aimed at transforming small and medium enterprises into a resilient and growth-oriented pillar of the national economy.

Presenting the roadmap at a press briefing, Chamber President Prof. Rohan De Silva stressed that SMEs remain the backbone of the country’s economy, contributing nearly 60% of national revenue, yet continue to face systemic challenges that limit their growth potential.

The eight-point roadmap includes; access to finance, digital transformation, market access and export promotion, capacity building and training, infrastructure development, regulatory support and ease of doing business, sustainable practices, and public-private partnerships (PPPs).

The briefing was attended by senior office-bearers of the Chamber, including Immediate Past President Mohideen Cader and Senior Vice President Colin Fernando.

At the core of the proposed roadmap is improving access to finance, which the Chamber identified as the single biggest constraint faced by SMEs. The plan calls for the introduction of low-interest SME credit lines, State-backed loan guarantee schemes and simplified banking procedures.

Fernando said supporting startups, women-led enterprises, rural businesses and export-oriented SMEs, with financial inclusion and cash-flow stability as national priorities.

The roadmap also places strong emphasis on digital transformation, recognising that SMEs must adapt to remain competitive in an increasingly technology-driven economy. The Chamber proposed measures to promote digital literacy, e-commerce adoption, online payment systems and automation, supported by targeted incentives and training programmes.

They also called for the digitisation of Government services related to SMEs in order to reduce delays, improve transparency and curb corruption, with the aim of ensuring that both urban and rural enterprises can participate fully in the digital economy.

Expanding market access and boosting exports form another key pillar of the strategy. Prof. De Silva highlighted the need to strengthen local value chains, improve branding and product development, and create pathways for SMEs to access regional and international markets.

‘Simplifying export procedures, improving access to trade information and encouraging SME participation in trade fairs and global platforms were identified as critical steps to help businesses move beyond survival and towards scalable growth,’ he added.

Capacity building and skills development were also prioritised, with proposals for continuous training programmes covering entrepreneurship, financial management, digital skills, quality standards and innovation.

Prof. De Silva noted that partnerships with universities, vocational training institutes, chambers and industry experts would be central to ensuring that training initiatives are practical, relevant and accessible across the country.

The roadmap further underscores the importance of infrastructure development to support SME productivity. They proposed measures include the development of dedicated industrial zones for SMEs, improved transport and logistics networks, reliable power and water supply, and access to shared facilities such as testing laboratories and warehousing. Regional development is identified as a key focus to enable SME growth beyond major urban centres.

Addressing long-standing concerns over regulatory complexity, the Chamber called for reforms to improve the ease of doing business. This includes simplifying registration, licensing, taxation and compliance procedures, introducing transparent and time-bound processes, and establishing one-stop digital platforms to reduce bureaucracy. They said regulations should be reviewed to ensure they support enterprise growth rather than act as barriers.

Sustainability also features prominently in the roadmap, with the Chamber arguing that environmentally responsible practices are essential for long-term competitiveness. The plan proposes supporting SMEs in adopting energy-efficient technologies, waste reduction methods and sustainable manufacturing practices, alongside incentives for green enterprises.

Finally, the Chamber emphasised the role of public-private partnerships (PPPs) in driving SME development. Fernando called for stronger collaboration between Government, chambers, financial institutions, academia and the private sector, supported by structured platforms for dialogue to ensure policies remain inclusive, practical and responsive to real-world SME needs.

Prof. De Silva said the organisation was committed to working with any government to promote the interests of the SME sector. ‘A strong SME sector means a strong Sri Lanka,’ he said, describing the roadmap not as a set of promises, but as a clear pathway towards inclusive growth, resilience and national economic recovery.

First Capital Holdings PLC recently donated Rs. 15 million to the ‘Rebuilding Sri Lanka’ fund, established to provide relief to communities affected by the cyclone Ditwah.

The cheque was presented by First Capital Holdings PLC Managing Director and Chief Executive Officer Dilshan Weerasekara to Secretary to the President Dr. Nandika Sanath Kumanayake at the Presidential Secretariat.

First Capital Holdings PLC Board of Directors Randinith Madanayake and Diluni Dhanushika were also present at the occasion.

Hemas Consumer Brands (HCB) secured the runner-up position in the Fast-Moving Consumer Goods (FMCG) and Retail Sector at the Great HR Awards 2025. Organised by the Chartered Institute of Personnel Management in partnership with Mercer, this recognition celebrates HCB’s outstanding achievements in elevating HR practices, inspiring progress, and shaping the future of the profession through innovation and leadership.

The public will be granted free entry to witness the Australia vs. Ireland match of the T20 World Cup scheduled to be played today at the R Premadasa International Cricket Stadium.

Accordingly, spectators may enter the ground via Gates 4 and 5. The gates will open at 1.00 pm, and the match is scheduled to commence at 3.00 pm.

Today’s fixture will be Australia’s of the ongoing ICC Men’s T20 World Cup 2026.