Category: Daily Financial Times

Indian Acting High Commissioner to Sri Lanka Dr. Satyanjal Pandey said India’s rapid economic expansion, coupled with its continued engagement with open trade and investment, offers Sri Lanka a rare opportunity to anchor recovery and long-term growth in a volatile geoeconomic environment.

Addressing policy thinkers, diplomats, and business leaders at the inaugural Colombo Geoeconomics Conference (CGC) 2026, organised by the Centre for Law and Security Studies (CLASS) and the Chintan Research Foundation (CRF) India, with the support of the Indian High Commission, last Friday, Dr. Pandey pointed out that as the global economic order fragments under the weight of protectionism, sanctions, and tariff wars, Sri Lanka’s most realistic path to resilience may lie closer to home.

Dr. Pandey said the erosion of the old global order has created instability, but it has also opened space for regional partnerships to shape new economic realities. ‘For Sri Lanka, aligning policy frameworks, investment priorities, and infrastructure planning with India’s growth trajectory may offer a way not only to buffer external shocks, but to secure a more durable role in an increasingly contested global economy,’ he added.

He acknowledged that the existing port infrastructure will not be sufficient to support India’s ambitions. The plans to expand port capacity could fit in with Sri Lanka’s globally competitive ports, positioning the island as a logistics and transshipment hub in the Indian Ocean.

‘The Colombo Port is among the best in the world in terms of handling efficiencies,’ Dr. Pandey said, pointing out that Sri Lankan capacity could ease India’s infrastructure bottlenecks while strengthening the island’s own revenue base.

He opined that such cooperation could also accelerate Sri Lanka’s long-discussed economic diversification.

Beyond apparel and tourism, Dr. Pandey pointed to opportunities in ports, renewable energy, connectivity, and integrated supply chains.

He suggested that deeper cooperation with India would allow Sri Lanka to leverage proximity as an economic advantage rather than perceive it through a narrow security lens.

‘Too often, India-Sri Lanka relations are framed almost exclusively in geopolitical terms. The more consequential perspective is geoeconomic. Sri Lanka should be seen not as a strategic threat, but as a geoeconomic potential, one that remains underutilised despite its location astride key maritime routes,’ he said.

He noted that developing economies face rising risks as traditional stabilisers of global trade and finance weaken.

‘Countries of the global south remain constrained by structural asymmetries, post-colonial legacies, and the uneven outcomes of liberalised trade, pressures now intensified by debt distress and sustainability challenges,’ he said.

Dr. Pandey cited that Sri Lanka’s own trajectory, emerging from a severe debt and balance-of-payments crisis, reflects these vulnerabilities.

‘Debt sustainability will dominate global economic debates for at least the next decade as preferential trade schemes and special dispensations for poorer economies come under increasing scrutiny. The playing field will only get sharper,’ he cautioned, leaving little room for neutrality or strategic autonomy except for countries with strong economic agency and resilience.

Against this backdrop, he stressed that India’s strategy of pragmatic engagement stands out. ‘Despite the global drift towards protectionism, India has continued to pursue liberal but balanced trade agreements, concluding deals with partners such as Australia, the United Arab Emirates (UAE), and the UK, while deepening negotiations with the EU, US, and parts of Latin America within the past few years,’ he added.

These frameworks, Dr. Pandey noted, are calibrated to protect politically sensitive sectors including agriculture and small and medium-sized enterprises, priorities that closely mirror Sri Lanka’s own economic concerns.

He said for Sri Lanka, India’s outward push represents less a competitive threat than a lever for growth.

‘Under India’s ‘Neighbourhood First’ policy, Sri Lanka’s prosperity is viewed as inseparable from India’s own economic ascent. If you prosper, you grow India close. In your prosperity, we see India’s prosperity,’ he said, adding that the relationship must be understood as mutually reinforcing rather than hierarchical.

India is already among Sri Lanka’s largest investors and is its second-largest trading partner, but Dr. Pandey asserted that the character of investment matters as much as its scale.

He recalled that Indian companies committed capital during Sri Lanka’s 2022 crisis, demonstrating a long-term approach aligned with the island’s development needs rather than short-term opportunism.

Dr. Pandey suggested that this model could help Sri Lanka stabilise capital inflows at a time when global investment decisions are increasingly shaped by geopolitical calculations rather than pure market logic.

He said maritime infrastructure is emerging as one of the most promising areas of complementarity. With India’s economy nearing $ 4 trillion and targeting much higher levels over the coming decade, around 80% of its trade already moves by sea.

Sri Lanka Insurance Corporation General Ltd. (SLICGL), has partnered Lanka Ride 2026, the islandwide cycling tour, as the Official Insurance Partner. The partnership reinforced SLICGL’s leadership in risk protection and commitment to advance national sporting excellence.

Lanka Ride has roots in Sri Lankan sports history. It was previously known as ‘Lanka Savariya’, the country’s longest and iconic cycle races for over two decades, organised by Lake House.

The Ministry of Youth Affairs and Sports and the Department of Sports Development jointly revived the competition, with the support of the Police and stakeholders including Lake House and SLICGL, into a national-level cycling tour with government endorsement, positioned as part of Sri Lanka’s broader sports development agenda.

The three-day tour, held from 16 to 18 January, covered the route from Colombo to Kandy to Anuradhapura and back to Colombo, and passed through seven districts including Colombo, Gampaha, Kegalle, Kandy, Matale, Anuradhapura, and Puttalam. The event rallied 26 cycling clubs and more than 150 cyclists, including elite teams from the Sri Lanka Army, Navy, Air Force, and Police, showcasing the strength of Sri Lanka’s sporting institutions and the growing popularity of cycling countrywide.

As the insurance partner, SLICGL provided Personal Accident Insurance to all registered cyclists and officials, and also extended temporary motor insurance to police escort vehicles for route management and safety.

With its islandwide network, SLICGL officers engaged directly with riders, officials, and spectators at start and finish points, reiterating the company’s role as a trusted protector both on and off the road. Extending its role, more than 50 SLICGL staff, agents, and volunteers gave their time to welcome riders, support checkpoints, and cheer participants, demonstrating true partnership and community spirit.

SLICGL’s involvement highlighted the broader mission of helping people pursue what matters most, knowing protection is there when life takes an unexpected turn. In safeguarding athletes and supporting national sporting events, SLICGL demonstrates the true purpose of insurance, that is enabling people to live fully, and offering far more than policies alone.

As a nation-backed insurer with over six decades of expertise, SLICGL continues to protect lives, strengthen communities, and contribute to Sri Lanka’s progress.

Ultimate parent Milford Exports Ceylon Ltd., has increased its shareholding in Melstacorp PLC, following the acquisition of an additional 1 million shares at Rs. 179 per share.

Prior to this, Milford Exports held 498,819,000 shares and following the completion of the transaction, its shareholding in Melstacorp has increased from 42.80% to 42.88%.

Melstacorp is the parent company of several leading listed entities such as liquor giant Distilleries Company of Sri Lanka PLC, conglomerate Aitken Spence PLC, Madulsima Plantations PLC, Balangoda Plantations PLC, Browns Beach Hotels PLC, and non-listed companies such as Melsta Technologies, Melsta Logistics, Melsta Properties, Belvantage, Continental Insurance Lanka, Bogo Power, and Melsta Hospitals Ragama.

Lanka Credit and Business Finance PLC (LCB Finance PLC) has recorded an exceptionally strong performance for the nine months ended 31 December 2025, reflecting strong financial performance and effective strategic execution.

In a statement the company said this achievement was driven by prudent Risk Management, cost management, improved operational efficiency, and sustained growth strategy across key business segments. The positive results underscore the Company’s resilience, sound governance and commitment to delivering long-term value to stakeholders. This strong outcome demonstrates the success of strategic initiatives, disciplined financial management and the collective efforts of the management and staff in driving sustainable growth. Strategic initiatives implemented during the year have contributed significantly to enhance operational efficiency and stable returns.

Revenue for the period rose to Rs. 1.41 billion, compared with Rs. 1.03 billion in the corresponding period of the previous year-an impressive 37% yearonyear increase. The growth was supported by higher sales volumes across core product segments, favorable market conditions, and strategic commercial initiatives undertaken during the year.

The company’s bottomline performance improved even more significantly. Profit before tax (PBT) almost doubled, rising from Rs. 222 million to Rs. 443 million, marking a 100% increase. This improvement reflects stronger operating performance and prudent cost controls across administrative and overhead expense categories.

Profit after tax (PAT) for the period climbed to Rs. 263 million, recording a 91% growth from Rs. 138 million a year earlier.

In addition, the company continued its commitment to shareholder returns by declaring Rs. 118 million in dividends for the period.

Total assets rose to Rs. 11.27 billion, reflecting an increase of 22% from Rs. 9.25 billion reported at the end of March 2025. The strong asset growth highlights the company’s continued expansion in its core lending operations and sustained market demand across its financial services offerings.

The largest contributor to the asset growth was the Loans and Receivables portfolio, which increased from Rs. 6.00 billion to Rs. 7.98 billion, marking a substantial improvement in credit disbursements during the ninemonth period. Lease rentals receivable and hire purchase assets also grew moderately to Rs. 1.82 billion, compared with Rs. 1.75 billion at the end of the previous financial year.

On the liabilities side, the company posted a significant rise in customer deposits, which climbed to Rs. 5.68 billion from Rs. 4.64 billion an increase of over Rs. 1 billion within nine months. This underscores investor confidence in the institution’s stability and returns. Borrowings due to banks also rose sharply to Rs. 1.79 billion, up from Rs. 1.07 billion, reflecting expanded funding requirements amid rising loan demand.

The company also reported Rs. 200 million in debt securities under financial liabilities, indicating the utilisation of alternative funding channels to diversify its capital structure. Total liabilities increased to Rs. 8.01 billion, compared with Rs. 6.13 billion at the end of March 2025.

The healthy growth in the equity base also resulted in an improvement in the Net Asset Value (NAV) per share, which rose to Rs. 4.14 compared with Rs. 3.95 as at 31 March 2025.

CEO K.G. Leelananda said: ‘This strong profit achievement is a testament to the trust placed in us by our customers, the confidence of our stakeholders, and the unwavering commitment of our management and staff. We remain focused on sustainable growth while delivering value to our stakeholders. LCB Finance continues to strengthen its market position through innovation, responsible lending practices and adherence to the highest standards of corporate governance. The company remains optimistic about maintaining its positive momentum in the months ahead.’

With a strengthened balance sheet and growing customer base, Lanka Credit and Business Finance PLC said in its statement it remains wellpositioned for continued growth in the upcoming quarters.

Calls to restrict access to social media inevitably raise alarm bells, and for good reason. Any attempt to ban or limit content on the internet must be approached with extreme care. History shows us that such measures can easily slide into censorship, eroding freedoms in ways that are difficult to reverse.

Sri Lanka, in particular, has a dark and complicated history with internet censorship, often justified under broad and loosely defined banners such as national security and public morality.

During the years of civil war, censorship introduced in the name of national security frequently extended beyond its stated purpose. What began as an attempt to control sensitive information soon encompassed political websites and online commentary that were merely unflattering to those in power. In the years since, social media platforms themselves have periodically been restricted, ostensibly to maintain public order, but often with the side effect or the intent of curtailing political dissent.

Yet it would be irresponsible to allow this history to paralyse us in the face of mounting scientific evidence. The global body of research examining the impact of social media and excessive internet exposure on children is growing, and its conclusions are increasingly difficult to ignore. Numerous studies now link heavy social media use among children and adolescents to increased anxiety, depression, attention disorders, sleep disruption, and impaired social development. The issue is no longer one of anecdote or moral panic, it is one of public health.

Recognising this, several countries have taken decisive action. Some have introduced age-based bans on social media platforms, while others have imposed strict limits on mobile phone use in schools. These decisions have not been taken lightly, nor should they be. They have followed extensive research, consultation with educators and mental health professionals, and careful consideration of long-term societal impacts. Importantly, these measures are targeted and specific, focusing on protecting children rather than exerting broad control over online spaces.

Phone and internet addiction is now a recognised phenomenon affecting people of all ages. However, banning or severely restricting internet access for adults is neither viable nor desirable in a modern society. Adults can, at least in theory, make informed choices about their digital habits. Children cannot. Their brains are still developing, their impulse control is limited, and they are far more susceptible to the addictive design features deliberately built into many social media platforms.

It is therefore both prudent and necessary to ensure that children are spared the worst effects of these new technological developments. This is not about shielding them from the modern world, but about allowing them to engage with it at an age and in a manner that does not compromise their mental health, education, and social development. Schools, in particular, should remain spaces for learning, interaction, and concentration, not extensions of the attention economy.

Crucially, any policy to curtail social media use among children in Sri Lanka must be grounded strictly in science and available data. It must not be driven by anecdotal evidence, moral posturing, or vague appeals to altruism. Clear age thresholds, transparent enforcement mechanisms, regular policy reviews, and independent oversight are essential to prevent abuse and mission creep. Just as importantly, such measures must be accompanied by digital literacy education for parents, teachers, and children alike.

Sri Lanka’s past teaches us to be cautious about censorship. The present, however, demands that we be equally cautious about inaction. When credible science points to real and lasting harm, the responsible course is not denial, but carefully designed intervention.

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.