Category: Daily Financial Times

Sri Lanka’s franchise sector enters a defining phase as the Sri Lanka Franchise Expo 2026, scheduled for 14 February at Marino Beach Hotel, Colombo, marks a deliberate step in establishing the island as a critical node in South Asia’s franchise economy, a move backed by serious institutional weight and growing market appetite.

The event will be inaugurated by Industry and Entrepreneurship Development Minister Sunil Handunneththi, with Indian High Commission Counsellor and Economic and Commercial Wing Head Devika Lal participating as Guest of Honour.

This year’s Expo builds on the momentum generated by the Global Franchise Forum 2025, held in April 2025, which drew stronger-than-anticipated participation from entrepreneurs, established businesses, and corporate investors, all actively pursuing scalable business frameworks amid recovering economic conditions.

What separates this initiative from typical trade events is the calibre of institutional endorsement. The Indo-Lanka Chamber of Commerce, Ceylon National Chamber of Industries, International Chamber of Commerce Sri Lanka, Colombo Chamber of Commerce, Federation of Chambers of Commerce and Industry of Sri Lanka, and Indian Small Business and Franchise Association are all backing the Expo. This level of support suggests the event represents more than commercial networking. It’s positioning franchising as economic infrastructure.

Franchise India Group Chairman Gaurav Marya said: ‘Sri Lanka is demonstrating clear economic recovery signals. The Global Franchise Forum has enabled critical dialogue and partnership formation that supports long-term economic stability. What we’re observing from Sri Lankan entrepreneurs is substantial, like genuine growth ambition, openness to global brand adoption, and purposeful scaling strategies.’

The participating brand portfolio reflects Sri Lanka’s evolving consumption patterns: Stellarossa, EasyGym, Coffeeshop Company, Action Coach, U Clean, Blenz Coffee, Tea Avenue, Impasti Pizza, Burgertory, Figaro’s Pizza, Barcelos, Yogurt Factory, and Orane International. The selection spans quick-service food, wellness, retail, and professional services, categories aligned with urban middle-class lifestyle shifts and emerging cafe culture.

For international franchisors evaluating regional expansion, Sri Lanka presents specific advantages: a 22 million population with rising disposable income, geographic centrality between India and Southeast Asia, established legal structures, widespread English usage, and tourism sector recovery driving foot traffic and consumer spending.

For local investors and entrepreneurs, franchising reduces market entry risk through proven operational frameworks, particularly valuable in an economic climate where capital access remains selective and business failure costs are high.

The Ministry’s direct involvement signals that franchise development is being considered as deliberate economic policy, not merely private sector activity. Combined with institutional backing, credible brand participation, and demonstrated market demand, the Expo is built on foundational elements that suggest lasting impact rather than transient interest.

For investors and strategic planners, the event offers insight into Sri Lanka’s entrepreneurial infrastructure and its capacity for adopting structured business models. For brands pursuing South Asian expansion, it provides an opportunity to evaluate market conditions, identify capable partners, and potentially secure first-mover positioning.

Cambridge University Press and Assessment formally introduced Linguaskill to Sri Lanka yesterday at the Courtyard by Marriott, Colombo, with a strong focus on the role of English in workforce readiness-particularly as Sri Lanka positions itself for a tourism-led economic recovery.

Delivering the keynote address, Cambridge University Press and Assessment Managing Director – South Asia Arun Rajamani said Linguaskill was designed to meet real-world needs.

‘Employers and institutions require fast, accurate and internationally benchmarked evidence of English ability. Linguaskill delivers that, while supporting learners to meet global expectations,’ he noted.

Cambridge University Press and Assessment Country Head – Sri Lanka and the Maldives Zahara Ansary said: ‘Linguaskill responds to a growing need in Sri Lanka for an accurate, reliable and internationally benchmarked English assessment. It enables institutions and employers to measure real-world communication skills while supporting learners and professionals to meet global standards.’

Linguaskill is a certificated English proficiency exam that delivers fair, accurate and reliable results, giving employers and recognising bodies confidence in an individual’s language ability. The assessment is offered in two formats – Linguaskill Academic and Linguaskill Business – tailored to higher education and workplace contexts respectively.

Candidates receive a certificate featuring in-depth reporting on each module completed, along with an overall average score. The assessment incorporates advanced built-in security technology and is aligned to the highest levels of the Common European Framework of Reference (CEFR).

Delivering the inspirational address, Janashakthi Group Managing Director and Group CEO Ramesh Schaffter underscored the pivotal role of English as Sri Lanka seeks deeper integration with the global economy.

‘English serves as a vital link connecting the country to international markets, knowledge systems and opportunities and it should not be viewed merely as a link language,’ he added.

Schaffter also pointed out that much of the world’s academic and professional knowledge base is available primarily in English. As a result, many Sri Lankans who are technically skilled and capable often find themselves disadvantaged due to language barriers, limiting their ability to progress, innovate and compete globally.

A high-level panel discussion, ‘Unlocking World-Class English,’ brought together corporate, education and skills leaders to examine how gaps in English proficiency continue to limit employability and service quality, despite growing demand from global markets.

The session was moderated by Cambridge University Press and Assessment Business Development Manager – English (Sri Lanka) Haaziq Feroze who noted that the discussion reflected a shared urgency across sectors to address language gaps with credible assessment and targeted upskilling.

Speaking during the discussion, Dialog Axiata PLC Immediate Past Group CCO CX Strategist and Transformation Leader Sandra De Zoysa said English proficiency has moved beyond being a ‘nice-to-have’ skill. ‘In sectors like tourism, BPOs and professional services, English directly impacts customer experience, confidence and credibility. When language fails, opportunity fails,’ she noted.

Infomate CEO Jehan Perinpanayagam pointed out that while Sri Lanka has strong technical talent, language remains a bottleneck.

‘We see capable professionals struggle to progress simply because they cannot communicate effectively in global business settings. Addressing English proficiency is essential if Sri Lanka is to remain competitive,’ he said.

A. Baur and Co. Senior General Manager – HR, Admin, Purchasing and Sustainability Ken Vijayakumar stressed the importance of objective assessment.

‘Employers need reliable tools to measure real workplace English, not just academic knowledge. Standardised assessment helps us recruit, train and promote with confidence,’ he said.

Highlighting the education sector’s role, ANC Education CEO and Wycherley Group of Schools Coordinating Principal Dayan Fernando said early and accurate benchmarking was critical.

‘If we align learning outcomes with global standards from school to workplace, we can close the gap between education and employability,’ he said.

Informatics Institute of Technology (IIT) Professional Development Unit Head Achini Fernando added that tourism and services growth would place new pressure on communication skills.

‘As Sri Lanka boosts itself as a tourism destination, frontline workers need confidence in practical English. Language should not be a barrier to opportunity,’ she said.

Linguaskill, Cambridge’s online, certificated English proficiency exam, is trusted by over 1,400 organisations worldwide, including international corporations such as Air France and higher education institutions such as RMIT University.

The launch event underscored a shared view among stakeholders that improving English proficiency is central to boosting employability, service excellence and Sri Lanka’s global competitiveness-particularly as tourism and export-oriented services continue to expand.

The Central Bank Governor Dr. Nandalal Weerasinghe’s recent remarks projecting 4-5% growth in 2026 and highlighting improving reserves, lower inflation, and financial stability have been widely welcomed. After the trauma of Sri Lanka’s economic crisis, any sign of normalcy is understandably reassuring. Yet this optimism needs to be read carefully. What is being presented is largely a story of stabilisation and recovery, framed in the familiar IMF language of macroeconomic management. That is necessary-but it is not the same as a pathway to durable growth.

The first issue is the nature of the projected growth itself. A 4-5% expansion can occur for many reasons, not all of which strengthen an economy in the long run. In this case, a significant part of the momentum is expected to come from post-cyclone reconstruction and public investment. This will boost activity in construction and related services and create jobs in the short term. But such growth is typically demand-led and temporary. It raises GDP without necessarily expanding the country’s productive capacity, technological capability, or export competitiveness. Once the reconstruction cycle fades, so may the growth.

Durable growth

This points to a crucial distinction that often gets blurred in public debate: economic recovery and durable growth are not the same thing. Recovery means returning to a more normal macro environment-lower inflation, a more stable exchange rate, some rebuilding of reserves, and a functioning financial system. Durable growth, by contrast, requires rising productivity, structural change, and a stronger export base. Sri Lanka can achieve the first without securing the second. Indeed, that is precisely what happened in earlier post-crisis episodes, where short-lived recoveries were followed by renewed external stress.

The Governor’s narrative is best understood as an IMF-style stabilisation narrative. Its centre of gravity is macro control: inflation targets, policy rates, reserves, debt service, and financial-sector resilience. These are the right tools for preventing another crisis. But they are not a strategy for accelerating development. IMF programs are designed primarily to restore confidence, manage risk, and stabilise the macroeconomy. They are not designed to answer the core development questions: What will Sri Lanka produce? What will it export? How will productivity rise? Which sectors will drive long-term growth?

Seen in this light, a projected 4-5% growth rate is best described as moderate recovery growth. It may be entirely plausible-especially if driven by reconstruction and public spending-but it is not the kind of growth that closes income gaps, absorbs underemployment at scale, creates sustained fiscal space, or materially reduces debt burdens. Countries that have successfully caught up in Asia typically sustained 7-8% (or higher) growth for long periods, powered by export expansion, industrial upgrading, and continuous learning.

If the current Government’s development agenda is genuinely ambitious, then there is a clear mismatch between the growth implied by that ambition and the growth described in the Central Bank’s outlook. A strategy that settles for 4-5% risks normalising mediocrity rather than mobilising the economy for take-off. Reconstruction-led and consumption-led expansions can lift GDP in the short run, but they do not, by themselves, deliver the productivity and export breakthroughs needed for sustained 7-8% growth.

There is also a risk that reconstruction-driven growth will recreate old external vulnerabilities. Large-scale rebuilding increases demand for cement, steel, fuel, machinery, and transport services-many of which are import-intensive in Sri Lanka. This means higher growth can go hand in hand with a widening trade deficit, renewed pressure on foreign exchange, and imported inflation. The Governor has rightly warned about inflationary and external pressures, but the deeper issue is structural: without a parallel expansion of export capacity and domestic production of tradables, stimulus-driven growth can quickly collide with the same constraints that caused past crises.

The improvement in reserves and the claim that debt service is ‘manageable’ are positive developments. But they should be treated as buffers, not proof of long-term security. Sri Lanka’s recent history shows how quickly reserves can be run down when imports surge, exports disappoint, or global conditions tighten. Reserves buy time. They do not, by themselves, change the underlying growth model.

Similarly, the focus on bringing inflation back towards target and maintaining steady policy rates reflects sound central banking. Price stability and financial-sector resilience are public goods. But an inflation target is not a growth strategy. Durable growth comes from investment in productive capacity, from learning and technological upgrading, from moving into higher-value activities, and from building competitive export sectors. Without these, macro stability becomes an exercise in maintenance rather than transformation.

Stability is essential. Without it, nothing else is possible. But stability is not a development strategy. It is the foundation on which a strategy must be built. The real test for policymakers now is not whether they can keep the economy stable, but whether they can articulate and implement a credible growth strategy that turns stability into momentum and recovery into transformation

Structural reforms

The repeated reference to ‘structural reforms’ also needs to be treated with care. In policy practice, this often means reforms to pricing, state-owned enterprises, taxation, and public finance management. These may improve efficiency and governance, and they matter. But in development economics, structural transformation means something more demanding: a change in what the country produces, how it produces, and what it sells to the world. It means shifting resources into higher-productivity, more technologically advanced, and more export-oriented activities. Without that shift, an economy can be well-managed and still remain fragile.

What is striking in the Governor’s statement is not that it is wrong, but that it is incomplete. We hear a great deal about stability, recovery, and resilience. We hear much less about the growth strategy itself. Which sectors are expected to lead the next phase of growth beyond construction and consumption? How will exports be diversified and upgraded? What is the plan for skills, technology, and productivity? How will private investment be steered toward tradable, foreign-exchange-earning activities?

These are not academic questions. They go to the heart of whether Sri Lanka is merely staging another rebound or beginning a genuine breakthrough. The country’s repeated crises have shown that returning to ‘normal’ is not enough if the underlying growth model remains unchanged.

In sum, the Central Bank Governor’s optimism should be understood for what it is: a stabilisation narrative, not yet a development strategy. It tells us that the economy is becoming calmer, more predictable, and less crisis-prone-and that is a real and necessary achievement. But it does not yet tell us how Sri Lanka will grow fast enough, long enough, and differently enough to escape its long-standing cycle of weak exports, external vulnerability, and stop-go growth.

A recovery built on reconstruction, consumption, and macro control can deliver 4-5% growth. But the government’s own ambitions-and Sri Lanka’s development needs-require 7-8% sustained growth driven by productivity, exports, and structural transformation. That kind of growth does not emerge automatically from stability. It must be designed, coordinated, and pursued through a clear strategy for production, learning, and upgrading.

Stability is essential. Without it, nothing else is possible. But stability is not a development strategy. It is the foundation on which a strategy must be built. The real test for policymakers now is not whether they can keep the economy stable, but whether they can articulate and implement a credible growth strategy that turns stability into momentum and recovery into transformation. Until that strategy is clearly on the table, Sri Lanka’s current optimism-welcome as it is-should be read with caution, not complacency.

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in collaboration with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on 24 January 2026, at the Radisson Blu Hotel, Riyadh Convention and Exhibition Centre, aimed at promoting Sri Lanka’s capital market to international and diaspora investors. In parallel with the forum, the SEC and CSE also facilitated discussions with Saudi Arabia’s Public Investment Fund (PIF), the Kingdom’s principal sovereign wealth fund.

The forum was organised to engage directly with the Sri Lankan expatriate community in Saudi Arabia as well as international investors, highlighting investment opportunities emerging from Sri Lanka’s capital market following the country’s exit from sovereign default and the restoration of macroeconomic stability.

The event brought together senior policymakers, regulators, and market leaders, including Central Bank of Sri Lanka (CBSL) Governor Dr. P. Nandalal Weerasinghe, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Sri Lanka’s Ambassador to Saudi Arabia Ameer Ajwad, SEC Chairman Senior Prof. D.B.P.H. Dissabandara, CSE Director Ray Abeywardena and Lynear Wealth Management Co-Founder and Managing Director Dr. Naveen Gunawardane.

Delivering the welcome address, Ambassador Ajwad underscored the significant potential to broaden public participation in Sri Lanka’s capital market, noting that limited financial literacy and investment awareness remain key constraints. He said the forum was designed to bridge this knowledge gap by equipping first-time, overseas, and experienced investors with insights on prudent investing, risk management, and disciplined wealth creation. He encouraged participants to engage actively with senior representatives from Sri Lanka’s key financial institutions, including the Central Bank, SEC, and CSE, and to view investment in Sri Lanka not only as a financial opportunity but also as a contribution to the country’s long-term resilience and prosperity.

Highlighting market performance, CSE Director Ray Abeywardena noted that the All Share Price Index had risen to over 23,800 points, representing a 120% increase since October 2024 following the Presidential Election. He said an equity investment made just over a year ago would have more than doubled in value, while capital gains in the Sri Lankan market remain tax-free.

He also noted that in 2025 the CSE ranked as the third-best performing market in the region, recording full-year growth of 42% on the ASPI and over 26% on the S and P SL20. Despite this performance, he stressed that the market remains significantly undervalued compared to regional peers, offering one of the most compelling valuation propositions in Asia.

In his opening remarks, SEC Chairman Senior Prof. Dissabandara outlined the rationale for hosting the forum overseas to engage the Sri Lankan diaspora and international investors. He reiterated the SEC’s three core mandates of investor protection, market development, and effective regulation, emphasising that investor confidence is anchored in trust built through strong oversight, transparent governance, and swift action to protect market integrity.

In a video address, Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando highlighted Sri Lanka’s economic stabilisation and strong performance in 2025, stating that macroeconomic and microeconomic indicators had exceeded expectations.

He said the Government’s fiscal discipline and the build-up of a robust cash buffer had helped stabilise financial markets and maintain steady interest rates.

Deputy Minister Chathuranga Abeysinghe said Sri Lanka is now transitioning from recovery to a phase of rapid economic growth, supported by legal and technology-driven reforms to improve the ease of doing business. He pointed to Sri Lanka’s strategic positioning as a regional hub, anchored by Port City Colombo and expanding maritime capabilities, alongside growing momentum in value-added manufacturing, high-growth services, and SMEs, which are already generating above-average capital market returns.

Providing the macroeconomic outlook, CBSL Governor Dr. Nandalal Weerasinghe projected economic growth of close to five percent in 2025, despite the impact of Cyclone Ditwah in the fourth quarter, with medium-term growth potential rising to six to seven percent through continued reforms. He announced that foreign reserves are expected to reach USD 8 billion by the end of the year, achieved through foreign exchange earnings rather than borrowings, marking three consecutive years of reserve accumulation. He also highlighted the adoption of a flexible exchange rate regime and regulatory reforms that will encourage large corporates and state-owned enterprises to raise capital through the market.

Offering a market perspective, Dr. Naveen Gunawardane said IMF-backed reforms have ushered Sri Lanka into a new phase of macroeconomic management characterised by stability in interest rates and the exchange rate. He noted that this shift is likely to drive greater participation by domestic institutional and retail investors in equities and real estate. Despite the recent rally, he said Sri Lanka’s equity market remains structurally undervalued and under-invested by foreign investors, with Lynear’s coverage universe trading at a one-year forward price-to-earnings ratio of 9.4 times and the banking sector at 0.9 times estimated December 2026 book value.

The main segment of the forum was a high-level panel discussion on the outlook for Sri Lanka’s equity market, moderated by CSE Chief Executive Officer Rajeeva Bandaranaike. Panelists discussed market resilience, recent policy reforms, and improvements in investment infrastructure that support sustainable growth. Participants also engaged directly with officials from the SEC and CSE and representatives of leading Sri Lankan stockbroking firms during a networking session that followed.

The Riyadh forum formed part of a broader series of strategic engagements with international and diaspora investors, following a similar event held recently in Dubai. Organisers said the strong participation reflected growing confidence in Sri Lanka’s economic revival and capital market prospects, while providing investors with direct access to information on long-term opportunities through the Colombo Stock Exchange.

Moose Clothing Company has been appointed the Official Merchandise Licensing Partner in Sri Lanka for the ICC Men’s T20 World Cup 2026, marking an important milestone in the brand’s journey on the international cricket stage.

Under this partnership, Moose is authorised to design, manufacture, and retail officially licensed ICC merchandise for the Sri Lankan market. This allows fans to access authentic, high quality ICC Men’s T20 World Cup merchandise that meets global standards, while carrying the design sensibility and craftsmanship Sri Lanka is known for.

The licensed collection will include a wide range of apparel and fanwear, giving supporters a meaningful way to connect with the world’s biggest cricket tournament. Each product is designed with comfort, durability, and everyday wear in mind, ensuring fans can celebrate their love for the game both on match days and beyond.

This appointment builds on Moose’s existing role as the Official Cricket Clothing Partner of Sri Lanka Cricket, where the brand designs and manufactures performance driven apparel for the national team. Together, these roles position Moose at the heart of both performance and fan engagement, uniting professional cricket apparel and official ICC merchandise under one brand.

Commenting on the announcement, Hasib Omar, CEO of Moose Clothing Company, said the partnership represents a proud step forward for the brand and for Sri Lankan apparel.

‘Cricket is part of who we are as a nation, and ICC tournaments represent the game at its very highest level. Being appointed as the Official Merchandise Licensing Partner, alongside our role as the Official Cricket Clothing Partner, reflects our ambition to take Sri Lankan design and manufacturing to a global audience. Most importantly, it allows fans to own authentic merchandise they can genuinely be proud of.’

From a design perspective, the partnership opens new creative possibilities. The Moose team has focused on translating the excitement, energy, and spirit of ICC cricket into products that fans can wear comfortably and confidently, while still reflecting the significance of the tournament.

For Moose, this appointment signals a continued evolution from national recognition to global participation. With a strong foundation in design, manufacturing expertise, and technology, the brand remains committed to elevating fan experiences while representing Sri Lanka on cricket’s biggest stages.

Official ICC Men’s T20 World Cup 2026 merchandise by Moose will be sold exclusively through ODEL, the official retail partner of Moose. The collection will also be available at Moose Clothing stores in Colombo and Kandy, allowing fans across the island to access the range with ease.

As the countdown to the ICC Men’s T20 World Cup 2026 begins, Moose invites fans to be part of the journey through merchandise that celebrates the game, the moment, and national pride.

DFCC Bank’s Rs. 7 billion Green, Social, Sustainable, and Sustainability-Related (GSS+) Bond Issue was oversubscribed, with the bank deciding to close subscription lists on Friday.

The bank launched an initial issue of up to 70 million Basel III-compliant, Tier II, listed, rated, unsecured, subordinated, redeemable GSS+ Bonds, with maturities of five years (2026/2031), seven years (2026/2033), and 10 years (2026/2036), each with a par value of Rs. 100, to raise up to Rs. 7 billion.

The bank said it received applications for over 100 million Bonds, resulting in the issue being oversubscribed and closed at 4:30 p.m. on Friday, with applications received prior to that time being accepted.

DFCC Bank also retains the option to issue a further 30 million Bonds in the event of oversubscription, enabling the total issue size to increase to a maximum of Rs. 10 billion. The basis of allotment will be notified to the Colombo Stock Exchange (CSE) in due course.

Separately, DFCC Bank on Friday announced that its Board of Directors has decided to issue up to 150 million Basel III-compliant, Tier II, listed, rated, unsecured, subordinated, redeemable debentures, subject to obtaining all necessary regulatory and other approvals.

The debentures will carry a non-viability conversion feature and will be issued at a par value of Rs. 100 each, with a term of up to 10 years.

The bank said the debentures may be issued in one or more tranches at the discretion of the Board of Directors.

Details relating to coupon types, interest rates, and final tenure will be determined prior to the finalisation of the Trust Deed, according to the disclosure made under Section 8 of the CSE Listing Rules.

England fought back from the brink to avoid a major shock and beat an inspired Nepal by four runs in their opening match of the T20 World Cup in Mumbai.

A month on from the conclusion of their Ashes defeat, England needed Sam Curran to defend 10 from the last over to deny Nepal the biggest win in their cricketing history and save his side from more misery.

The brilliant Lokesh Bam needed to hit the last ball for six to secure victory but only managed one. Lokesh, who finished on 39* from 20 balls, dropped to his haunches at the finish as England’s players shook his hand to congratulate his efforts. He had looked to be taking his side to victory when he struck two sixes to take Jofra Archer for 22 in the 18th over before swiping Luke Wood for another two fours in the 19th.

But England hung on – the recently-recalled Curran finding yorkers under pressure at the death.

It means Head Coach Brendon McCullum and Captain Harry Brook, who scored 53 in England’s 184-7, begin their World Cup without the ignominy of overseeing one of the biggest upsets in World Cup history.

They have three days before their next match against West Indies on Wednesday at the same ground.

Elephant House in January marked 160 years of building trust across generations, an exceptional milestone in the country’s corporate and consumer brand history. The anniversary recognises a legacy shaped by quality, reliability, and relevance, while reaffirming Elephant House’s focus on innovation, sustainability, and long-term growth under the John Keells Group.

Marketed and manufactured by Ceylon Cold Stores PLC (CCS), Elephant House traces its origins to a company with over 160 years of operating history in Sri Lanka and a track record of strengthening iconic brands through continuous reinvention. Over the decades, CCS has evolved its portfolio of beverages and confectionery to stay aligned with changing consumer preferences, backed by strong manufacturing capabilities across four facilities and a commitment to operational excellence.

As part of the John Keells Consumer Foods Sector, CCS operates with robust corporate governance and ethical business conduct, supported by integrated reporting aligned with global best practices. The anniversary also highlights the company’s ongoing focus on sustainability and Environmental, Social and Governance (ESG) priorities, covering responsible practices, community impact, and initiatives that support long-term stakeholder value.

‘Reaching 160 years is not simply a measure of time, it is a reflection of deep consumer trust earned through consistency, innovation, and a relentless commitment to quality,’ said John Keells Consumer Foods Sector President Daminda Gamlath. ‘Elephant House has remained relevant across generations because it has respected its heritage while continuously evolving. As we mark this milestone, our focus is firmly on the future, strengthening our portfolio, accelerating innovation, and advancing sustainability to serve consumers and the country for decades to come.’

Looking ahead, Elephant House will continue to prioritise portfolio expansion, product reinvention, digitalisation, and advanced analytics, while deepening sustainability initiatives, responsible sourcing, and operational efficiency as part of CCS’s future-focused strategy.

In January 2026, India witnessed a deeply disturbing incident when C. J. Roy, Chairman of the Confident Group, died during an ongoing Income-Tax search operation at his office premises. While investigations are continuing and authorities have cautioned against premature conclusions, the fact remains that a human life was lost in the midst of a tax enforcement action.

This incident sent shockwaves through the business community, triggered political debate, and raised serious questions about how tax powers are exercised, how taxpayers experience enforcement, and where institutional responsibility begins and ends.

For Sri Lanka – at a time when tax enforcement is intensifying amid fiscal consolidation, IMF-linked revenue targets, and an expanded tax base – this tragedy is not distant news. It is a warning signal.

Tax compliance: A shield, not a burden

The death of Roy highlights a reality that many taxpayers tend to underestimate. Tax non-compliance is not merely a financial or technical issue; it has the potential to escalate into a serious personal and psychological crisis. When unresolved tax irregularities progress into investigations or enforcement actions, the consequences extend far beyond additional tax payments or penalties. They can involve prolonged uncertainty, reputational damage, intrusive scrutiny, and intense mental stress. Once a tax search or raid commences, the taxpayer often loses control over the situation, underscoring that non-compliance carries risks that are far deeper and more personal than commonly assumed.

Lesson for Sri Lankan taxpayers: Tax compliance is not just about paying dues – it is about protecting stability, dignity, and peace of mind.

A message to the non-compliant general public: Delay is not immunity

A dangerous belief continues to persist among sections of the public – that everyone avoids tax and that nothing will ever happen. The incident involving Mr. Roy exposes the fragility of this assumption. While tax systems may tolerate non-compliance for a limited period, mounting fiscal pressures inevitably compel governments to act decisively. In Sri Lanka, the tax environment is evolving rapidly through the introduction of digital Taxpayer Identification Numbers, enhanced bank transaction reporting, integrated property and vehicle databases, and foreign income disclosures under international information-exchange frameworks. As a result, the compliance net is tightening steadily, often without public visibility, making prolonged non-compliance an increasingly high-risk strategy.

Lesson: Silence today does not guarantee safety tomorrow.

Business leaders and high-net-worth individuals: Transparency is protection

For entrepreneurs and promoters, the stakes are significantly higher. Complex business structures that are not supported by proper documentation quickly attract regulatory suspicion, while poor record-keeping intensifies pressure during audits and investigations. The absence of timely professional advice often leaves individuals isolated in high-stress situations. Responsible taxpayers must therefore maintain clean and transparent audit trails, voluntarily regularise historical non-compliance, engage qualified tax professionals, and recognise mental well-being as an essential component of overall risk management.

Lesson: Professional compliance is personal protection.

A critical reflection for tax officials: Power must be humanely exercised

The death of Mr. Roy compels tax administrations everywhere to reflect seriously on how authority is exercised. Tax officials are entrusted with strong legal powers to safeguard public revenue, but enforcement must never cross the line into intimidation, coercion, or psychological pressure. For officials – including those of Sri Lanka’s Inland Revenue Department – this incident underscores a fundamental truth: enforcement must be firm yet proportionate, authority must be exercised lawfully yet empathetically, and revenue collection must never disregard human vulnerability. When power is exercised without sensitivity, institutions risk erosion of public trust, politicisation of enforcement, demoralisation of ethical officers, and long-term damage to voluntary tax compliance.

Lesson for officials: The legitimacy of tax collection depends on how power is used, not how much power exists.

Sri Lanka’s enforcement path: Firm, fair, and forensically clean

Sri Lanka is entering an unavoidable phase of intensified revenue mobilisation. However, global experience – reinforced by the tragic incident involving Mr. Roy – demonstrates that the manner in which enforcement is carried out is as important as enforcement itself. To ensure credibility and sustainability, Sri Lanka’s tax administration must be firm, fair, and forensically clean. This requires clear and written audit and search protocols, senior-level oversight in sensitive cases, documented communication rather than informal or verbal pressure, guaranteed access to professional representation for taxpayers, and robust internal accountability and grievance-redress mechanisms.

Lesson: Sustainable enforcement requires visible fairness.

Policy makers: Revenue targets must respect human limits

Governments often measure the success of tax administration through numerical indicators such as the number of raids conducted, additional assessments raised, and penalties collected. However, the human cost of enforcement – including stress, fear, and irreversible personal consequences – is rarely reflected in such statistics. A resilient and sustainable tax system therefore requires a careful balance between enforcement and fairness, achieved through voluntary disclosure mechanisms, effective alternative dispute resolution processes, continuous taxpayer education, and humane investigative practices that respect human dignity while safeguarding public revenue.

Lesson: A tax system that respects dignity ultimately collects more revenue.

Society at large: Fear is a weak foundation for compliance

Fear-based compliance is inherently fragile and temporary. Sustainable tax compliance is built on trust, predictability, fairness, and understanding. When taxpayers perceive tax authorities as adversaries, compliance tends to become minimal and defensive. In contrast, when tax administrations are viewed as fair, transparent, and professional regulators, compliance evolves into a cooperative and enduring relationship that benefits both the State and taxpayers alike.

Conclusion: A tragedy that must not be ignored

While Sri Lanka has faced many complex enforcement challenges, it has not yet experienced a widely reported case where an individual died during an Income-Tax enforcement action. This makes the Indian incident a significant regional reminder of why respectful, humane and transparent tax administration matters.

The death of Roy during a tax enforcement operation is a profound tragedy, but failing to learn from it would be an even greater failure. For Sri Lanka, this moment calls for serious reflection. Taxpayers must comply early and transparently, non-compliant citizens must recognise the increasing risks of continued avoidance, tax officials must exercise their authority with restraint, professionalism, and humanity, and the State must ensure that revenue mobilisation never comes at the cost of human life or dignity. Ultimately, a tax system succeeds not when people fear it, but when they respect it.

Good governance collective Justice for All in a statement has called for the repeal of the Prevention of Terrorism Act (PTA), whilst rejecting the proposed Protection of the State from Terrorism Act (PSTA).

Following is the full statement signed by Prof. Jayadeva Uyangoda, Dr. Jayampathy Wickramaratne, PC, Eran Wickramaratne, A.M. Faaiz, M.A. Sumanthiran, PC, Bhavani Fonseka, Ermiza Tegal, Nadishani Perera, Jerusha Crossette-Thambiah, Ravinthiran Niloshan, and Benislos Thushan.

Sri Lanka is yet again confronted with renewed debates on the PTA and replacement legislation, with the latest being the introduction of the proposed PSTA.

At the outset, Justice for All questions the Government’s failure to honour its campaign promise of repealing the PTA. This is against a backdrop of abuse over four decades that has contributed to a culture of impunity, with fears that any replacement law will further entrench such practices. In such a context, Justice for All opposes the PSTA and reiterates its demand for the immediate repeal of the PTA.

The decades-long demand for the repeal of the PTA witnessed a surge in support in the wake of the Aragalaya. These sentiments were captured in an all-island signature campaign initiated by Justice for All, which received wide support for the abolishment of this draconian law. Furthermore, this campaign received support from all Opposition parties at the time, including from individuals in the present Government.

Thus, the shift in position – from repeal of the PTA to introducing a new law that is far worse to what it attempts to replace – is not only disappointing but begs the question whether the debates around a replacement law is an attempt by some in Government to persist with using the PTA.

The following, whilst not exhaustive, are some key concerns with the PSTA:

The PSTA significantly broadens the definition of terrorism and related offences that can result in abuse

The PSTA removes the sole minimum safeguard under the PTA that required arrests to be carried out or authorised by an officer of at least Superintendent rank, and provides broad powers of arrest to the Police, military, and Coast Guard

Powers of arrest and administrative detention, including the power to keep an individual in detention and remand for up to two years

The PSTA vastly expands Executive and security sector powers. For example, the PSTA provides broad powers to the President to proscribe organisations and impose curfew. It also allows Deputy Inspectors General of Police to apply for restriction orders to the Magistrate’s Court. Further, it allows the Defence Secretary to declare prohibited places for up to 72 hours, extendable for a further 72 hours with judicial approval.

The above are examples of the overbroad nature of the PSTA that entrenches powers for repression rather than dismantling it.

In addition, we note that despite the promise to repeal the PTA and a ‘system change,’ the Government has continuously relied on the PTA, compounding fears of normalising the use of the PTA and the abusive practices associated with it. In such a context, we call for an immediate moratorium of the PTA sequenced by its repeal. We ask that victims of the PTA be heard and conscientious guarantees of non-recurrence are made.

Finally, we urge the President, the Government, and the Opposition to demonstrate genuine political will and commitment towards upholding human rights and the rule of law with the aim of strengthening our democracy.