Category: Daily Financial Times

The Hindu Business Line: The tariff cuts announced by US President Donald Trump, slashing duties on Indian goods from 50% to 18%, would be a major ‘game-changer’ for the competitiveness of Indian exports vis-à-vis other Asian suppliers, as it brings tariffs to one of the lowest, exporters say.

‘Indian tariffs are now among the lowest. We have swung from the highest to the lowest amongst all neighbours. Textiles and apparels is up for a big boom,’ said ICC National Expert Committee on Textiles, Textiles Exporter and Chair Sanjay Jain.

At 18%, India’s tariffs are lower than China’s (at 30-35%), Vietnam (20%), Bangladesh (20%) and Indonesia (19%), providing the country’s exporters a distinct advantage, pointed out Jain.

The FTA will lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December,’ exporters body FIEO noted.

‘The reduction in tariffs would be a major game-changer for the competitiveness of Indian exports vis-à-vis other Asian suppliers. It is expected to lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December,’ pointed out exporters’ body FIEO in a statement.

With sharper price parity, improved tariff certainty, and strong buyer confidence in Indian suppliers, these sectors are poised for a rapid surge in orders and a strong acceleration in export growth in the coming months, it said.

‘Lower tariffs will not only improve price competitiveness but also help Indian exporters integrate more deeply into US supply chains. This agreement will encourage capacity expansion, attract fresh investments, and support job creation in export-oriented industries,’ said FIEO President S.C. Ralhan.

The US is India’s single largest export market and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market, pointed out Apparel Export Promotion Council Chairman A. Sakthivel.

The US was India’s largest export market with shipments in FY25 valued at $ 86.51 billion.

The Ceylon Federation of Micro, Small and Medium Enterprises (MSMEs) has called for urgent structural reforms to the country’s lending and regulatory framework, warning that flawed policy responses during successive national crises have disproportionately harmed small businesses while enabling excessive profit accumulation within the financial sector.

Addressing the media on Thursday, the Federation outlined a clear path forward, centred on corrective measures to address what it described as unjust interest recovery and weak regulatory oversight since 2022.

To ensure uniform and enforceable implementation, the Federation urged the Government to enact special legislation, if necessary, to give legal effect to these measures. It argued that voluntary guidelines and temporary concessions have repeatedly failed to protect borrowers during crises, highlighting the need for binding statutory safeguards.

Placing Sri Lanka’s experience in a global context, they pointed to the international shift away from bank-controlled interest rate benchmarks, citing the abolition of the London Interbank Offered Rate (LIBOR) in the UK. Following revelations that major banks had manipulated LIBOR to boost profits at the expense of customers, UK authorities replaced it with the Sterling Overnight Index Average (SONIA), a transparent and risk-free benchmark designed to restore public trust.

Drawing more comparisons with international responses, they cited the United Arab Emirates, where the Central Bank ordered six-month loan deferrals without additional fees or interest following recent floods, effectively shielding borrowers during a disaster.

The Federation opined that this precedent demonstrates the inherent risks of allowing banks to influence key pricing benchmarks and underlines the need for greater transparency in Sri Lanka’s own interest rate framework.

They also criticised the handling of debt moratoriums introduced during the COVID-19 pandemic, describing their implementation as critically flawed. The Federation claimed the Central Bank announced moratoriums without issuing clear and uniform guidelines on interest capitalisation, creating a regulatory vacuum that financial institutions exploited.

‘Loans were rescheduled in ways that maximised institutional advantage, with interest compounded through opaque mechanisms that borrowers struggled to understand,’ they alleged.

According to the Federation, when repayment demands were later issued, a significant majority of financial institutions failed to provide detailed explanations or breakdowns of how inflated loan balances had been calculated.

‘MSME owners who questioned these figures were often met not with restructuring support, but with threats of parate execution, including the seizure of property, vehicles and other assets,’ they claimed.

They warned that such practices undermine confidence in the financial system and deepen economic inequality, particularly during periods of national distress.

‘Regulators, must function as a shield for citizens and productive enterprises during crises, rather than as instruments that facilitate profit accumulation at the expense of economic survival,’ they said.

The Federation stressed that MSMEs which obtained loans on or before April 2022 were subjected to unprecedented interest rate shocks, and argued that banks should be required to refund excess interest collected between May 2022 and November 2024. According to the Federation, this period coincided with extreme rate volatility that borrowers neither caused nor could reasonably absorb.

To facilitate this process without destabilising the banking system, the Federation proposed that the Government issue tax credits to banks based on the 2023 and 2024 financial years. These credits would allow banks to recover the cost of interest refunds gradually over a five-year period, using fiscal space already created through elevated tax revenues from the sector.

They also called for the immediate suspension of Credit Information Bureau (CRIB) and non-performing loan (NPL) listings for borrowers who were classified as non-performing on or after the Easter Sunday attacks, noting that repeated external shocks have distorted the true creditworthiness of many otherwise viable enterprises.

The Federation warned that continued NPL classification without contextual relief is accelerating business failures and permanently excluding entrepreneurs from formal credit markets.

They maintained that addressing these structural failures is essential to preserving the MSME sector, sustaining employment and restoring trust between borrowers, banks and the State.

The disclosures in the so-called Epstein’s Files have shaken up much of the Western world with some of the world’s richest and powerful men exposed as part of a gory and heinous crime syndicate in which children were the biggest victims. There have also been the names of powerful men from other countries including the Middle East whose names have transpired in the files released recently by the US Department of Justice (DOJ) which includes millions of pages of documents, including thousands of images and videos, related to the late sex offender Jeffrey Epstein.

Jeffrey Epstein committed suicide in his prison cell in in New York City on 10 August 2019, but the sordid details of what transpired on an island owned by him are shameful and illustrate the depth to which moral degradation among some of the most rich and powerful men in the world.Andrew Mountbatten, now stripped of his prince hood, was among Epstein’s prominent clients for whose pleasure underage girls were procured. The others who are seen in incriminating videos and photographs included former US President Clinton, Microsoft founder Bill Gates and many other prominent personalities.

The sordid details becoming public day after day are sickening and shocking. Even those who did not have a direct link to Epstein covered up for the crimes committed by others in their circles and are now forced to act innocent. British Prime Minister Keir Starmer this week publicly apologised to the victims of Jeffrey Epstein for appointing Peter Mandelson as the United Kingdom’s ambassador to the United States, despite the diplomat’s close ties to the late sex offender. It’s unlikely the British public will forgive him that easily and already there are growing calls for him to step down.

The details of Epstein’s child trafficking were known for years but till today the justice system has failed the victims and none of the men involved in these heinous crimes have been punished. It is unlikely they will be punished in the future either given that, like anywhere else in the world, the rich and powerful always find a way to escape the justice system.

There are reports that an underage girl was trafficked from different countries by Epstein, but all the details are unavailable. This when most of the leaders of the countries scream from rooftops at poorer nations for not doing enough to protect children or women’s rights.

Ironically it is always the high and mighty in powerful countries who often lecture those in less affluent countries on human rights and child rights and consider themselves morally superior. However, the Epstein files have shown that they are the least qualified to preach to the rest of the world about anything, particularly women and children’s rights and human rights in general.

Everyone in the world should be concerned about the immense injustice that thousands of girls and young women have suffered at the hand of rich and powerful men. The crimes committed may be worse than what has come to light so far amidst allegations that some women were also murdered. Trafficking of women and children is a global problem and when it happens in the very same countries who claim to be in the vanguard of child and women rights and with the patronage of very powerful persons, it’s despicable and deserves the strongest form of condemnation. The Epstein sage also shows the uphill battle women in general the world over has against powerful forces that are hell bent on degrading and exploiting womenkind, not spearing even the young.

Navy Sports Club edged out Police Sports Club in a thrilling 30-29 contest in their Inter Club Rugby League Plate Segment encounter which concluded at Welisara yesterday.

At the short breather Navy SC led 16/10.

Tries from Amith Madushanka and Kavisha Wijerathna, along with a crucial penalty try, gave the hosts valuable ascendancy. Fly-half Isuru Kongahawatta was rock-solid with the boot, slotting over two conversions and three penalties to keep the scoreboard ticking.

Police SC, however, came out firing in the second half with attacking intent. Tries from Sujan Kodithuwakku, Prince Chamara in the first and then in the later half Vihanga Shaveen, Pradeep Kumara and Ramitha Himasha underlined their open play and refusal to back down. Two of the tries were converted by Kaliova Mocetadra kept Police within striking distance, and they surged ahead late in the game, setting up a tense final 10 minutes of play but the hosts held on to a memorable single point win securing their second win this season while climbing up the ladder to 3rd position.

Referee Ravin Alexander.

Today in another Plate segment encounter Army SC will host Air Force at Panagoda while in the Cup segment Havelock SC will host Kandy SC at Havelock Park. The last game of this week will be the one between CH and FC vs CR and FC at Race Course on 8 February.

Vibhav Sooryavanshi delivered a once-in-a-generation innings, hammering 175 from 80 balls to propel India to a staggering 411/9 against England in the final of the ICC Under-19 World Cup in Harare. India went on to win the match bundling out England for 311 in 40.2 overs.

The total is the highest ever posted in a knockout match at an Under-19 World Cup, eclipsing India’s own previous record from the 2016 edition. At the heart of it was a display of sustained power rarely seen at youth level.

At just 14, Sooryavanshi produced an innings that will sit among the finest in age-group international cricket. He struck 30 boundaries-split evenly between fours and sixes-and scored at a strike rate in excess of 218, overwhelming England’s attack from the outset.

His knock set multiple benchmarks. He became the first batter to pass 150 in an Under-19 World Cup final and registered the quickest century ever in a final at the tournament. Over the course of the competition, his run tally now ranks third among Indian players at a single Under-19 World Cup, behind only Sarfaraz Khan and Shikhar Dhawan.

The innings also underlined his broader dominance at youth level. With this performance, Sooryavanshi moved past all predecessors to become India’s leading run-scorer in Youth ODIs, achieving the mark in only 25 innings.

The 10th edition of ICC Men’s T20 World Cup will kick off today in Sri Lanka boosting cricket and tourism during a month-long engagement.

Co-hosted by India and Sri Lanka, this year’s edition is billed to be one of the best tournaments world cricket has ever seen. Sri Lanka will host over 20 matches in Colombo (R. Premadasa International Cricket Stadium and Sinhalese Sports Club) and in Kandy (Pallekele International Cricket Stadium.

Pakistan and Netherlands will play the first match in Colombo tomorrow at SSC, which hosts its first ever day-night cricket match under lights. Mumbai’s Wankhede Stadium will kick off the tournament in India between host and USA.

Sri Lanka’s first match will be on Sunday against Ireland at R. Premadasa International Cricket Stadium, Colombo.

The venue for the Final is yet to be confirmed, either in Ahmedabad or Colombo, scheduled for 8 March. Sri Lanka is in Group B with Australia, Ireland, Zimbabwe and Oman.

President Shammi Silva told the Daily FT that Sri Lanka Cricket will get a boost of over $ 5 million as contribution for co-hosting the championship apart from other revenue streams.

Sri Lanka previously hosted the Men’s T20 World Cup single handed in 2012 whilst it was a co-host of 2011 Cricket World Cup in 2011 along with India and Bangladesh.

Almost all city hotels are fully booked by international cricket fans amidst a busy winter tourist season at present. Cinnamon Life at City of Dreams is hosting almost all the visiting teams.

Its new CEO Kamal Munasinghe said city hotels occupancy will be 70-80% throughout February.

Classic Destinations is handling the hospitality part locally and Expolanka Holdings Director – Leisure Cluster Sabry Bahaudeen said around 400 players and officials will figure in Sri Lanka during the tournament apart from over 200 international journalists.

The ICC T20 World Cup comes at a time when Sri Lanka ended January with highest ever tourist arrivals for the month of 277,327. The record is on the back of 15% growth in 2025 to a record 2.36 million tourists in 2025.

Featuring 20 teams, Pakistan will play all its matches in Sri Lanka whilst Australia, Zimbabwe, USA, Namibia, Oman are the other teams who will play in Sri Lanka.

Blockbuster game India versus Pakistan scheduled for 15 February in Colombo remains uncertain due to Pakistan’s decision not to play India. The matter is still under review by ICC. India is the defending champion having won the 2024 final beating South Africa.

Bangladesh is missing the tournament due to differences of opinion with India and ICC with the beneficiary being Scotland. There will be 55 matches in total across the T20 World Cup.

The T20 World Cup Groups:

Group A: India, Pakistan, United States, Netherlands, Namibia

Group B: Australia, Sri Lanka, Ireland, Zimbabwe, Oman

Group C: England, West Indies, Scotland, Nepal, Italy

Group D: New Zealand, South Africa, Afghanistan, Canada, United Arab Emirates

Fans around the world are able to follow the action live across television, digital, audio and emerging formats.

Amana Bank Head – Knowledge Marketing and Financial Inclusion, Muath Mubarak, along with the Symposium Chair and WUSL Head – Banking and Finance Department, presenting the Runner-Up prize of the Inter-Department Debate Competition to the winning team.

Amana Bank reinforced its commitment to knowledge sharing through its active engagement at the 2nd Symposium in Banking and Finance (SyBFin-2025) organised by the Department of Banking and Finance of the Faculty of Business Studies and Finance at Wayamba University of Sri Lanka. The Bank contributed to the event’s academic discourse through participation in the technical deliberations and by supporting initiatives designed to elevate student learning and professional readiness, including the Inter-Department Debate Competition.

A key highlight of the Bank’s involvement was its representation on the technical panel themed ‘Economic Resilience and Stability, Financial Markets and Services, and Innovative Technologies for Finance.’ The session brought together industry practitioners and academics to explore emerging dynamics shaping the financial sector, fostering a deeper understanding of market transformation, regulatory evolution, and technology driven innovation. Amana Bank was represented in the panel by its Head of Knowledge Marketing and Financial Literacy Muath Mubarak.

Sharing his reflections on Amana Bank’s participation, Vice President – Retail Banking and Marketing, Siddeeque Akbar stated that ‘Engagements of this nature allow us to contribute real-world perspectives to the academic environment while also gaining valuable insights from the next generation of financial professionals. As the industry continues to evolve, it is essential that both practitioners and academics collaborate to cultivate talent capable of driving intelligent, ethical, and sustainable financial innovation for the country.’

Highlighting the value of industry collaboration, Wayamba University of Sri Lanka, Department of Banking and Finance Head, A.G.D.L.K. Gunaratna, added: ‘The involvement of institutions like Amana Bank significantly enriches the learning ecosystem of our students. Their contribution to the technical discussions and student engagements helped bridge theoretical knowledge with practical application. We deeply appreciate this meaningful partnership, which strengthens our collective efforts to prepare professionals for the future of finance.’

Through its continued engagement with higher-education institutions, Amana Bank remains committed to advancing academic development, fostering innovation, and contributing to the long-term resilience and competitiveness of Sri Lanka’s financial sector. As part of the Central Bank’s National Road Map on Financial Literacy, Amana Bank completed 80+ Financial Literacy programs in 2025 catering to an audience in excess of 10,000 including, students, professional, traders, SMEs, business leaders and women entrepreneurs.

Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah-based IsDB Group being the principal shareholder of the Bank. The IsDB Group is a ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest based banking model, Amãna Bank was recognised amongst the Top 50 Strongest Islamic Bank’s in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.

Mogo Studios has officially released the trailer for The Secret of the Moonstone, marking a historic milestone as Sri Lanka’s first fully produced animated feature film created for a global audience. The film is scheduled for worldwide theatrical release in 2026 and has already been submitted to several prestigious international film and animation festivals.

Produced entirely in Sri Lanka by local talent, The Secret of the Moonstone represents one of the most ambitious creative projects undertaken by the Derana group to date. The film underscores the growing capabilities of Sri Lanka’s animation and digital storytelling industries, positioning the country on the international animation map.

Set in a futuristic vision of Colombo, the film offers a fresh and imaginative re-telling of the beloved folktale of Maha Dena Muttha and his five golayas. The story follows Lucky, a descendant of Maha Dena Muttha, and his best friend Taniya, as they embark on a high-stakes adventure through Sri Lanka’s mystical forests in search of the legendary Book of Wisdom. Guarded by a magical creature named Nila and pursued by the descendants of Arachchi, the journey blends advanced technology with timeless folklore, weaving a powerful narrative of courage, legacy, and friendship.

The Secret of the Moonstone is a fast-paced action-adventure designed for family audiences, offering entertainment that appeals across generations while celebrating Sri Lanka’s cultural heritage through a contemporary cinematic lens.

Mogo Studios GM Sachitha Kalingamudali said: ‘This is the first animated feature film produced in Sri Lanka with a clear vision for global audiences. It represents years of planning, creative development, and perseverance by a dedicated team of Sri Lankan artists and technicians. Reaching this milestone is a moment of immense pride, not only for us at Mogo Studios but for the entire local animation industry. We believe this film demonstrates that Sri Lanka has the talent and capability to tell world-class stories on the international stage.’

Mogo Studios is a subsidiary of Derana Macroentertainment Ltd., one of Sri Lanka’s largest and most influential media conglomerates. Backed by the creative and production strength of the Derana group, Mogo continues to drive innovation in animation, gaming, and digital storytelling, positioning Sri Lankan content on the global stage.

Building on the momentum of The Secret of the Moonstone, the studio has already commenced development on its next major animated feature in collaboration with PowerKids Entertainment (Singapore) and Climb Studios (India). In addition, production is underway on an animated children’s series aimed at global distribution.

When President AKD and his election teammates entered the campaign for presidency and parliament in 2024, they practically gave up their commitment to economic radicalism and openly declared their acceptance to work with the market based open economy model, the most celebrated product of the era of globalisation. The champions of the open economy promised the world that when open economies become a global phenomenon, they would narrow the economic and wealth gaps between global north and global south and within each of them between the rich and the poor. Economic freedom and market competition were promised to play the role of income and wealth levellers leading towards greater equality among peoples and nations. Alas! What they did at the end was the opposite. Income and wealth gaps widened instead of narrowing, and cynics came out with the 1:99 ratio to depict reality. To make matters worse modern-day economies and international trade are increasingly becoming weaponised in the sense that they are being turned into weapons to attack or defend the interests of countering superpowers.

It is in this new era of weaponised economies and international trade aided by financialisation of real economic sectors that Sri Lanka celebrated its 78th year of political independence after suffering through the Ditwah cyclone disaster and years of financial corruption leading to a state of bankruptcy. To the credit of the new political leadership with its unreserved commitment to corruption-free economic management assisted by the IMF the economy has reached stability and is hoping rather optimistically to enjoy at least 5% growth by the end of this year. If that could be achieved, it would be a record in comparison to an economy like that of Germany for example which is expecting to grow only by around 1%.

Reforms

To achieve that 5% target, one economist had demanded ‘big bang’ reforms and the Board of Investment Chairman wants reforms without ‘concessions’ to invite FDI as if that would be the magical panacea for robust growth. These economists and pundits little realise how economies and international trade are getting weaponised and enmeshed in the imperialist power game among US, EU, Russia and China. For example, the recent trade deal between Donald Trump and Narendra Modi, the leaders of a combined economy worth $33 trillion in terms of GDP, to permit Indian exports to US at a reduced tariff rate of 18% instead of 50% but in return for Delhi’s promise not to import oil from Russia was to isolate and subdue the power of Putin’s regime.

Similarly, the US deal with China to share clean technology and AI in return for reduced tariffs of only 15% on US imports from Taiwan and zero tariff on import of aircraft components, generic pharmacology products and natural resources unavailable in the USA was meant to check China’s growing dominance over clean technology. Trade concessions and FDI have become instruments not to share public good but to maintain global balance of power. The principle of comparative advantage is no longer the fundamental criteria for international trade. Tariffs and qualitative barriers, economic and trade sanctions and outright coercion, and confiscation of cargo carriers have all become instruments of a weaponised world trade to maintain superpower balance rather than to eradicate economic misery and satisfy at least the basic needs of a vast majority of humans. Even anti-immigration policies are part of this new game of power. In this game therefore FDI is tied more with foreign policy than with economic development.

Geopolitics

Given this climate of weaponisation of economies and international trade along with the overwhelming dominance of the financial sector over the real economic sector, what prospects are there for an island economy like Sri Lanka to enjoy rapid economic growth without surrendering its national sovereignty? Situated strategically in the Indian Ocean which has become a contested zone for geo-political dominance between the two regional powers, China and India, and worsened by the entry of Trump’s US via Modi’s India, Sri Lankan economy would be compelled to depend for growth on the tender mercies of this trio. The challenge facing the Sri Lanka Government therefore is to explore the possibilities of finding markets and sources of investment outside the pressure arising from this trio. More than the economic policy it is Sri Lanka’s foreign policy that is becoming decisive in its struggle for growth and prosperity. India for example has allocated INR 4 billion or $43.6 million in its 2026-27 Budget to assist Sri Lanka. China has promised to spend $3.7 million for the construction of an advanced oil refinery as part of its Belt and Road Initiative. Would Trump now enter and reduce his import tariffs further on Sri Lanka’s exports? In essence, all three powers are weaponising Sri Lanka economy and trade not for the benefit of Sri Lanka primarily but for winning the contestants’ own power struggle in the Indian Ocean.

At a time when economies and international trade were not used as primary weapons in international power struggle, Thomas Jefferson defined US foreign policy as ‘peace, commerce, and honest friendship with all nations, entangling alliances with none’; but in the current world of weaponised economies and struggle for imperial dominance, Trump’s Secretary of State Marco Rubio put it threateningly and said: ‘We need American foreign policy that tells the world that it is bad to be our enemy and good to be our friend’. With the economy at stake, Sri Lanka’s 78th year of independence is bound to be a critical year in the arena of foreign policy.

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), as the national body of accountants has hailed the historic appointment of Chartered Accountant Samudika Jayaratna, as the country’s first female Auditor General.

In a statement, CA Sri Lanka also expressed its gratitude to President Anura Kumara Dissanayake for nominating Jayaratna, and to the Constitutional Council, under the chairmanship of Speaker Dr. Jagath Wickramaratne, for its unanimous approval, bringing to an end the nearly 10-month impasse since April 2025 and thereby ensuring the stability and continuity of this vital constitutional office. CA Sri Lanka President Tishan Subasinghe said that the appointment constitutes a pivotal achievement for both the profession and the country.

‘Jayaratna brings a distinguished record as a Chartered Accountant and senior professional at the National Audit Office, combining deep expertise in public audit with a proven commitment to financial governance.

Her appointment reflects the enduring value of integrity, professionalism, and ethical leadership in fostering transparency and strengthening the foundations of accountable governance.’

Vice President Anoji de Silva hailed the historic appointment highlighting that Ms. Jayaratna assumes her role not only as a guardian of public finance but as a trailblazer who has turned a historic page. ‘To have a woman leading the National Audit Office fortifies the integrity of our institutions and makes our democracy stronger for all. This is a victory for capability and a new chapter for accountability in Sri Lanka,’ she said.

According to CA Sri Lanka’s Chief Executive Officer Lakmali Priyangika, the appointment stands as a powerful affirmation of the progression of women into the highest echelons of public service. ‘This appointment is an inspiration for our entire membership, and especially for young women embarking on professional careers. It clearly demonstrates that merit, capability, and principled leadership can redefine possibilities and contribute significantly to the nation’s governance.’