Category: Daily Financial Times

Speaking at the Pathfinder Foundation’s first Ambassador’s Roundtable for the year on 21 January, Republic of Trkiye Ambassador Dr. Semih Ltf Turgut outlined Ankara’s foreign policy priorities amid a period of heightened global turbulence, stressing diplomacy, dialogue, and cooperation as essential tools for navigating an increasingly unstable international environment.

The Ambassador observed that the turbulence and uncertainty of recent years have carried forward into 2026, with unresolved conflicts, shifting power balances, and declining respect for a rules-based international order. He stressed that while geography may separate Trkiye and Sri Lanka, both countries share a common aspiration for peace, stability, and sustainable development at regional and global levels and emphasised the importance of strengthening bilateral, regional, and multilateral cooperation at a time when collaboration is of utmost importance.

Highlighting the changing nature of global politics, the Ambassador noted that international relations are increasingly shaped by differing perspectives and interpretations of geography, history, and power. He stressed that conflicts in seemingly distant regions can have significant ripple effects worldwide, reinforcing the need for informed and flexible foreign policy approaches.

Turning to current global conflicts, the Dr. Turgut referred to the ongoing wars in Ukraine and Gaza as defining crises of the present era. He stated that these conflicts demonstrate both the limits of military power and the deep humanitarian costs of war, while also exposing a certain duplicity in the international system. Emphasising the fragile nature of ceasefire efforts, particularly in Gaza, he called for sustained international engagement to prevent further escalation and human suffering.

The Ambassador also drew attention to continued instability in the Middle East, including developments in Yemen, Iran, and the Horn of Africa, as well as rising tensions in Europe and East Asia. He cautioned that increasing militarisation, proxy rivalries, and geopolitical competition risk further erosion of global stability, while economic pressures and austerity measures could fuel political extremism in many regions.

Outlining Trkiye’s foreign policy priorities, he stated that Ankara’s approach is anchored in regional peace, stability, and independence. He noted Trkiye’s continued efforts to mediate between Russia and Ukraine, emphasising the importance of securing the Black Sea for global food security. He also reaffirmed that full membership in the EU remains a strategic priority for Trkiye and highlighted its engagement in Central Asia through the Organisation of Turkic States and its focus on economic cooperation in energy and transport corridors.

Concluding his address, the Ambassador stressed that diplomacy remains the most effective and least costly instrument of foreign policy, particularly at a time of resource constraints and global uncertainty. He called on the international community to prioritise dialogue over confrontation and to uphold the principles of sovereignty, non-interference, and cooperation in pursuit of lasting peace.

Following the presentation, the session continued with an interactive Q and A discussion covering global security developments, regional dynamics, economic challenges, and prospects for enhanced Trkiye-Sri Lanka cooperation.

The Pathfinder Foundation is a leading Sri Lankan think tank dedicated to promoting informed dialogue on foreign policy, economic development, and strategic affairs through initiatives such as the Ambassador’s Roundtable, which brings together diplomats, academics, business leaders, and media representatives for high-level discussions.

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) successfully concluded the ‘Invest Sri Lanka’ Investor Forum in Dubai on 22nd January 2026 at the Sheraton Grand Hotel, as part of a series of roadshows across the Middle East.

The forum, targeting the international investment community and Sri Lankan diaspora, served as major events in Dubai and Abu Dhabi to spotlight Sri Lanka’s emergence as a rising frontier market with zero capital gains tax amid a sustained rally that has delivered rapid growth over the past few years.

The forum brought together high-level Government officials, regulators, leading stock brokering firms, international investors, fund managers, banks and the Sri Lankan diaspora to foster connections and promote long-term capital flows into Sri Lanka and featured a panel discussion and presentations from key speakers. Alongside the forums, the SEC and CSE facilitated strategic meetings with several prominent regional institutions, including UAE state-owned global investment firm Mubadala Investment Company, Abu Dhabi Securities Exchange and Chamber of Commerce. Additionally, meetings were held between the Central Bank of Sri Lanka and leading UAE-based banks to discuss the resumption of foreign credit lines to Sri Lanka.

The Dubai forum was marked by the presence of several senior level policy officials, market leaders and market regulators and facilitators, including; Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Sri Lanka Ambassador to United Arab Emirates Prof. Arusha Cooray, Consul General of Sri Lanka to Dubai and the Northern Emirates Alexi Gunasekera, SEC Chairman Senior Prof D.B.P.H. Dissabandara, CSE Director Ray Abeywardena and Lynear Wealth Management Ltd., Co-Founder and Managing Director Dr. Naveen Gunawardane

In her welcome address, Ambassador Cooray said: ‘The bi-lateral relationship between SL and the UAE has grown significantly in the recent past, entering a new phase of friendship and cooperation. Last year posed significant challenges for Sri Lanka following Cyclone Ditwah, the impacts of which continue to be felt across the country. I would like to take this opportunity to express Sri Lanka’s sincere gratitude to the UAE Government and its people, for the support rendered during the cyclone.’

Highlighting the strength of bilateral trade ties, the Ambassador noted that the UAE is Sri Lanka’s largest trading partner in the Middle East, and was Sri Lanka’s 7th largest export destination with exports valued at $335 Mn in 2025. She further added that the UAE was Sri Lanka’s 3rd largest import origin, with imports valued at $1.3 billion also last year.

Speaking on investment opportunities, she emphasised that the UAE is additionally the sixth largest investor in Sri Lanka and as identified, there is large potential in several areas including logistics, energy, ports, IT, agriculture, hospitality, tourism, and real estate.

She noted, ‘Our focus has primarily been on FDI, but the presence of this delegation signals growing potential for portfolio investment as well.’

Turning to labor cooperation, she pointed out that labour is another key area of cooperation, given the 350,000 Sri Lankans residing in the UAE.

On remittances, she stated that the UAE was also the highest or second-highest source of remittances to Sri Lanka during the first three quarters of 2025.

Reflecting on diplomatic progress, the Ambassador remarked that on the diplomatic front, the past year alone has seen a number of high level visits.

She elaborated, ‘The Investment Promotion and Protection Act between Sri Lanka and the UAE was signed during the visit of the President Anura Kumara Dissanayake to the UAE last year, and the National Chamber of Commerce of Sri Lanka and the Federation of the UAE Chambers of Commerce and Industry signed an MoU in April 2025, during the visit of the Deputy Prime Minister and Foreign Minister of the UAE to Sri Lanka, Abdullah bin Zayed Al Nahyan.’

Highlighting market performance, CSE Director Ray Abeywardena said: ‘The All-Share-Price-Index (ASPI) has experienced exponential growth and today, as we gather here, it sits over 23,800 points, representing a staggering 120% growth since October 2024, post the Presidential Election.’

Emphasising the investment opportunity, he noted, ‘To put that in perspective: An investment made in our equity market just over a year ago would have more than doubled in value. He added, ‘And as you are aware capital gains acquired in our market is free of tax.’

On regional performance, he remarked, ‘The performance speaks for itself. I am pleased to highlight that in 2025, the Colombo Stock Exchange was the 3rd best performing market in the entire region. He elaborated, ‘We have demonstrated resilience, robust volume, and a full year growth of 42% on the ASPI and over 26% on the S and P SL20 in 2025.’

Speaking on capital raising activity, he stated, ‘I am pleased to state that in 2024, $568 million was raised in the Capital Markets on the CSE and a further $408 million in 2025 bringing total capital raised to a sizable $976 million. He affirmed, ‘I can state confidently that the momentum is certainly encouraging.’

On valuation and investment appeal, he highlighted, ‘Despite the surge, the Colombo Stock Exchange remains highly undervalued compared to our regional peers. He emphasised, ‘From a valuation perspective, we present one of the most compelling propositions in Asia.’

Concluding on market metrics, he noted, ‘We ended 2025 with a market Price-to-Earnings (P/E) ratio of 10.7 times which still makes us the second cheapest market in terms of Price-to-Earnings in the region.’

In his opening remarks, SEC Chairman Senior Prof. Dissabandara, highlighted the rationale behind the forum’s location, stating, ‘We chose to host the Invest Sri Lanka Forum in Dubai to engage directly with this vibrant community and highlight the compelling opportunities available within Sri Lanka’s capital market, including avenues for long-term investment through the Colombo Stock Exchange.’

Speaking on the SEC’s commitment, he emphasised, ‘As the Securities and Exchange Commission of Sri Lanka, we remain firmly committed to fostering a transparent, efficient, and inclusive capital market ecosystem. He added, ‘Today’s forum is not merely about investment opportunities; it further reflects our collective commitment to building a resilient financial infrastructure that attracts global capital while serving the aspirations of our people.’

Outlining the SEC’s mandate, he stated, ‘The SEC is entrusted with three core mandates: protecting investor interests, create, maintain and regulate a fair, orderly, efficient and transparent securities market and ensure the maintenance of high professional standards in the provision of services in relation to the securities market . He noted, ‘Over the years, Sri Lanka’s securities market has played a pivotal role in channeling domestic savings into productive investment, supporting capital formation and economic growth.’

On building investor confidence, he remarked, ‘In today’s competitive global environment, investor confidence ultimately depends on trust, trust built through robust regulatory oversight, transparent governance structures, and the demonstrated ability to act swiftly and decisively when market integrity is at risk.’

In a video address to the gathering, Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, said: ‘In the year 2025, we navigated it with stabilisation and high performance in many areas. He elaborated, ‘In the field of political stabilisation, we have demonstrated good governance, clean politics, openness, professional conduct and maintenance of diplomatic relations to showcase how best we should address and maintain uphold the public interest’.

Addressing economic achievements, he remarked, ‘When it comes to economic stabilisation, which was the biggest challenge for us because we wanted to take the country out of the economic abyss’. He emphasised, ‘If you look at the year 2025, all the macroeconomic variables, microeconomic indicators confirm we’ve not only achieved the stabilisation we targeted but exceeded expectations with consistent high performance throughout the year’. He underscored the Governments Fiscal discipline: ‘We have maintained rigorous public financial management, which enabled us to build a robust cash reserve. This has allowed us to regulate financial markets effectively and keep interest rates stable, avoiding fluctuations and unnecessary volatility.’

Adding a Government perspective, Deputy Minister Chathuranga Abeysinghesaid: ‘Sri Lanka is entering a phase of rapid economic growth following a strong and disciplined recovery from recent economic uncertainty. Today, the economy is increasingly predictable, with key macroeconomic indicators moving firmly in the right direction’.

Elaborating on Government initiatives, he emphasised, ‘The new Government is actively improving the ease of doing business through comprehensive legal and technology-driven reforms, creating a stable, transparent, and investor-friendly environment’. He further highlighted that Sri Lanka is strategically positioning itself as a regional economic hub, anchored by the development of Port City Colombo and the expansion of its maritime and logistics capabilities across the Indian Ocean trade routes.

On sectoral growth, he noted that value-added manufacturing and high-growth service sectors are gaining momentum, supported by preferential access to major global markets. He added, ‘At the same time, the Government is accelerating efforts to secure additional market access agreements, further strengthening export competitiveness’.

Speaking on investment returns, he stated that the expansion of industry and the rapid growth of small and medium enterprises are already translating into above-average returns in the capital markets, presenting compelling opportunities for both strategic and portfolio investors.

Concluding his address with an invitation to investors, he said, ‘We invite global investors to explore the emerging opportunities in the Pearl of the Indian Ocean – a nation defined not only by its strategic location and economic potential, but also by its talented people and extraordinary natural beauty.’

Providing the macroeconomic context, CBSL Governor Dr. Weerasinghe, briefed the forum in a segment dedicated to the economic outlook of Sri Lanka in 2026 and beyond. He stated, ‘We all know Quarter 4 in 2025 there was kind of a shock in terms of Cyclone Ditwah, still the 2025 growth was closer to 5%. Looking ahead, he noted, ‘But going forward in 2026 we’ll get back to the same trend in growth because clearly the potential is there. He emphasised, ‘With all the reforms that was basically mentioned by two ministers will enhance the potential from 4% to 5%, medium term maybe 6% to 7%.’

Turning to foreign reserves, he highlighted, ‘We have been able to build reserves. Those are stable reserves, not necessarily based on someone else’s borrowing. He announced, ‘By end of this year we will hit $8 billion Reserves. Not through borrowings or commercial borrowings, through foreign exchange earnings of the country. Reflecting on this achievement, he remarked, ‘We never had in the history this kind of continuous three years of reserves. He assured, ‘That will be the situation going forward. That is the stability and predictability of currency.’

On avoiding past mistakes, he explained, ‘Before 2022 a mistake that we saw is that the central bank tried to fix the currency at some level. And we ran down all the borrowed reserved and ended in a crisis’. ‘He reassured investors, ‘So that I think we can assure you that won’t be the situation in the future. There will be no crisis. There is no balance of payment crisis’. He added, ‘We will have a stable flexible external regime that will take care of the demand for external side both imports and exports’.

On regulatory reforms and capital market implications, he noted, ‘We brought in the regulation where the single borrower limit exposure should be brought down’. He explained its significance to the capital market, so the large corporates that are SOEs should be able to raise their capital through capital markets.’

Providing a market perspective, Lynear Wealth Management’s Dr. Naveen Gunawardane presented on ‘Sri Lanka Equities: Navigating the Next Phase of Growth’ and remarked, ‘Under the IMF program, Sri Lanka has implemented a set of long-overdue reforms that has led the country to a new paradigm in macroeconomic management. He emphasised that Sri Lanka is already experiencing a period of macro stability, and we believe that with these reforms in place, the country can experience an extended period of macro stability, even beyond the tenure of the current IMF program. He explained, ‘In such an environment, one would expect to see stable and market driven interest rates and a stable and market driven currency.’

Reflecting on the country’s economic trajectory, he stated, ‘Sri Lanka has been a country where macro instability has been the norm rather than the exception. He added, ‘We believe that this new paradigm will lead domestic investors, both institutional and retail, to increase, or in most cases to add, allocations to domestic equities and real estate. On valuation and investment opportunities, he noted, ‘Despite the recent rally, Sri Lanka’s equity market remains structurally undervalued and is under-invested by foreign investors. He concluded, ‘Based on LYNEAR’s coverage universe of 45 listed stocks, we believe the market is currently trading at 1-year forward PER of 9.4x, with the banking sector trading at 0.9x estimated December 2026 book value.’

The principal component of the forum was a high-level panel discussion themed ‘Sri Lanka Equity Market Outlook,’ moderated by CSE CEO Rajeeva Bandaranaike. Panelists shared insights on the market’s resilience and potential, showcasing recent policy reforms, improved investment infrastructure, and a strengthened ecosystem that supports sustainable investment as Sri Lanka progresses through 2026.’ Participants also got the opportunity to network with Sri Lanka’s leading stock brokering firms, and directly pose queries to the CSE and SEC, in the networking event that followed the forum.

In his vote of thanks, Consul General Alexi Gunasekera, mentioned that all the presenters had imparted a shared future for Sri Lanka and the UAE.

He emphasised, ‘Coupled with the recently signed Agreement on Promotion and Protection of Investments between Sri Lanka and the UAE when our president visited UAE last year, we are ready to partner with you all for growth, economic development and for a winning situation. He concluded, ‘So just don’t take this event as a conclusion of conversation. Take this event as a beginning of a long-standing partnership that UAE and Sri Lanka will have.’

The forum came in the same week that the Sri Lankan capital market broke three milestones, closing trading for the week with the record highest All-Share-Price-Index (ASPI), S and P SL20, and market capitalisation. Sri Lanka’s capital market has delivered strong performance over recent years, with notable growth in index returns, market turnover, and capital raising activities. The All-Share-Price-Index (ASPI) rose by 269% from 6,129.21 points in 2020 to 22,624.31 points in 2025., The ASPI and S and P SL20 posted returns of 41.89% and 26.64% respectively in 2025, with the year’s momentum marked with increased market turnover of Rs. 1.23 trillion, and ending with a market cap of Rs. 8.068 trillion. Furthermore, Sri Lanka’s equity market stands above regional competitors with a market Price-to-Earnings (P/E) ratio of 10.73x as of the end of 2025, offering strong upside potential for investors seeking frontier market exposure. Last year saw the Sri Lankan capital market prosper amidst significant reforms and positive economic developments, making it an attractive platform for investment and providing opportunities for institutional investors and fund managers globally.

Theses forums form part of a broader initiative to engage the international investor market in the healthy growth currently underway in the capital market, and to empower such investors to exercise allocation that support both growth and portfolio diversification in the rising frontier market of Sri Lanka. Both the SEC and CSE are committed to sustaining this effort through continuous engagement and the convening of similar strategic forums, which are expected to continue for the remainder of 2026.

Top-class player Abdul Sallay will lead the Thurstan rugby outfit for the 2026 season, which will kick off in March.

Amindu Rajapaksha and Ruchira Hishan are the two Deputies of the outfit, both of who add balance and depth to the leadership group.

Under the guidance of Head Coach Shamli Navas, supported by Assistant Coaches Ranuka Medagedara and Nalin Kumara, the side has enjoyed a steady and promising 2025 League campaign. Recording three wins and one draw, the team has shown growing consistency in their last few games. (SJ)

If nothing untoward happens in the remaining three weekends, SSC are primed to win the Tier B three-day League title and get back to where they belong – the Major Club three-day league next season.

SSC hold a commanding 40-plus points lead over their nearest rivals, Negombo CC and Leo CC, and look invincible. After being rather shockingly demoted to play in Tier B, SSC have steeled themselves to make amends for that lapse with a forceful drive towards winning the Tier B three-day league title this season. Their determination has been so compelling that, after eight weekends of matches, they remain the only unbeaten team in the competition.

SSC, led by national cricketer Avishka Fernando, have simply swept every opposition off their feet and look unstoppable. In their last two games against Army SC and United Southern SC, they faltered in the first innings, conceding a lead, but came back strongly in the second innings to convert them into outright victories.

Leading SSC’s charge towards the title is Sri Lanka’s premier Test spinner Prabath Jayasuriya, who is the leading wicket-taker in the tournament with 65 wickets (avg. 14.03) from eight matches, which is 16 wickets more than his nearest rival, Mangala Pradeep, a bowler of the same type from Leo CC. These two leading wicket-takers will clash when SSC meet Leo CC at the Air Force Grounds, Katunayake, in one of the six matches commencing today.

Negombo CC somewhat lost ground when they were held to a tie by Army SC last weekend and had to share the points. A win would have helped them reduce the points deficit against SSC. Negombo CC meet Kandy Customs SC at the Army Grounds, Dombagoda, and will try their utmost to take maximum points from the match.

For Colombo Malay CC, their game against Sebastianites at the Samadhi Grounds, Anuradhapura, is of utmost importance. Following back-to-back outright losses to Kandy Customs SC and Leo CC, Malay CC find themselves at the bottom of the table and in danger of being demoted to play in the Governor’s Cup. With only three more weekends of matches, time is running out for teams in the bottom half of the table to avoid relegation to a lower division.

Navy SC, another team fighting against demotion, have a tough game against United Southern SC at Welisara. United Southern SC did well to bowl table leaders SSC out for 183 and grab a first-innings lead, although they eventually lost the match outright.

Similarly, Ragama CC, although winners of their last two matches, will need to extend that run to feel safe from relegation. They meet Galle CC at the Moors SC Grounds. Moratuwa SC and Army SC will battle it out at the De Soysa Stadium, Moratuwa. – [ST]

The Bank of Ceylon (BOC) marked the listing of its inaugural Basel III-compliant Tier II Sustainability Bond with a bell ringing ceremony at the Colombo Stock Exchange, formally recognizing the largest sustainability bond issuance ever undertaken in Sri Lankan history and the first by a state-owned bank.

The ceremony, was attended by the Chairman, members of the Board of Directors, Acting General Manager/Chief Executive Officer, senior management of BOC, Chief Executive Officer of Colombo Stock Exchange and other representatives of BOC and CSE, and key stakeholders of the bond issuance. The event symbolized the entry of a landmark sustainable instrument into Sri Lanka’s listed debt market and showcased growing investor confidence in structured, transparent capital market solutions.

BOC’s sustainability bond, which was oversubscribed and closed on the opening day of December 22, 2025, has been widely viewed as a notable development for Sri Lanka’s capital markets at a time of heightened climate vulnerability and liquidity constraints due to modest pressure on interest rates.

Speaking at the ceremony Chairman, Bank of Ceylon Mr. Kavinda de Zoysa said: ‘This bell ringing marks a historical achievement for the Bank of Ceylon and for Sri Lanka’s sustainable finance journey as it is the largest issuance in the history of Sri Lanka. The oversubscription points to investor confidence in the Bank’s balance sheet, governance standards, and its role in financing development that delivers both economic and social value. Our objective was to set a benchmark in structure, transparency, and credibility. The successful listing of this sustainability bond sends a clear signal about the direction in which Sri Lanka’s largest state-owned bank is heading. We are deeply grateful for all the stakeholders to this land mark issuance and our investors for their enthusiastic participation in our sustainability journey’

The sustainability bond was issued in alignment with international sustainability bond principles and Sri Lanka’s Green Finance Taxonomy. Proceeds are to be allocated to a portfolio of eligible green and social projects under the Bank’s Sustainable Finance Framework, supported by reporting commitments and independent external review. Eligible sectors include renewable energy, energy efficiency, sustainable water and waste management, as well as social sectors such as agriculture, micro, small and medium enterprises, healthcare, education, and basic infrastructure.

Acting General Manager and Chief Executive Officer, Mr. Y. A. Jayathilaka said: ‘This listing highlights the depth of the Bank’s internal capabilities across framework development, and execution, as well as the market’s confidence in our ability to deliver sophisticated transactions within the domestic capital market. The proceeds from this bond will support lending to priority sectors while strengthening the Bank’s capital position.’

The Colombo Stock Exchange played a facilitative role throughout the listing process, providing guidance on regulatory and disclosure requirements and supporting engagement with development partners. In this regard, the CEO of Colombo Stock Exchange, Mr. Rajeeva Bandaranaike said, ‘We at the CSE are pleased to see BOC as the first state bank to issue a sustainable bond and issue the first BASEL III compliant Sustainable bond in Sri Lanka which incidentally is the largest sustainable bond issuance to date. When we introduced this instrument in 2024, as part of rollout of GSS+ instruments, we aimed to provide a mechanism for companies through the capital market to provide an investment platform for social and environmental projects and transition the country’s economy towards a green future.’ .’

The Asian Development Bank extended technical assistance in the development of the Sustainable Finance Framework, while KPMG served as the Independent External Reviewer and People’s Bank acted as Trustee to the Issue. Auditor General of Sri Lanka served as the Auditors and Reporting Accountants to the issue. The bonds were rated ‘AA-‘ with a Stable outlook by Lanka Rating Agency Limited.

Deputy General Manager (International, Treasury and Investment) Mr. G. A. Jayashantha, said: ‘During the year 2025, Bank of Ceylon raised LKR 35 billion, representing 26% of the total debt issuances through the Colombo Stock Exchange, which is the highest amount of debt among all listed entities. These issuances were exclusively structured and managed by our investment banking team who possess a wealth of expertise in structuring innovative capital market (debt) instruments.’

BOC’s sustainability bond listing also builds on a period of strong financial performance by the Bank. The Bank recorded a profit before tax of LKR 87.7 billion during the first nine months of 2025 while increasing its total assets to LKR 5.5 trillion. In 2025, BOC was ranked as the leading Sri Lankan bank among the Top 1000 World Banks by The Banker magazine and was named the Most Valuable Brand in Sri Lanka by Brand Finance Lanka and recognized with the prestigious super brand status, a position earned through trust, service and generations of commitment to the nation. Fitch Ratings has affirmed the Bank’s National Long-Term Rating at ‘AA- (lka)’ and its Long-Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’.

Guided by purpose, strengthened by the choice of the people, Bank of Ceylon continues to shape the future of Sri Lanka.

Lanka Rating Agency has assigned an initial entity rating of A+ with a Stable Outlook to LB Finance PLC, citing its strong market position, consistent performance and superior asset quality.

‘The rating of LB Finance PLC reflects its position as one of the leading players in the leasing and finance companies industry in Sri Lanka, supplemented by consistent performance and very strong asset quality,’ Lanka Rating said in a press release.

As at September 2025, LB Finance accounted for around 12.3% of the sector’s total asset base and approximately 12.4% of sector deposits, positioning it among the largest licensed leasing and finance companies in the country. The company is a subsidiary of Vallibel One Group, which holds a majority stake of about 51.75%.

Lanka Rating noted that the company’s ‘well-established market outreach is augmented by its extensive nationwide footprint of around 221 branches, coupled with technological advancements and robust controls.’

The rating agency highlighted that LB Finance has progressively diversified its lending portfolio while maintaining asset quality. As at September 2025, gold loans accounted for around 38% of the loan book, followed by leasing and vehicle loans at about 42%, with the remainder comprising power drafts, term loans and mortgage lending.

‘While the relatively high exposure to gold loans exposes the company to gold price volatility, the risk is partially mitigated through strong controls, including daily price monitoring, conservative margin requirements and periodic portfolio reviews,’ the agency said.

On earnings, Lanka Rating said LB Finance’s performance ‘remains resilient,’ with net interest income increasing by about 3.2% year-on-year to Rs. 25.1 billion in FY2025 and improving further to Rs. 14.2 billion in the first half of FY2026. The company reported profits of Rs. 10.8 billion in FY2025 and Rs. 5.8 billion in the first half of FY2026, reflecting a year-on-year increase of around 23.7% for the period.

Asset quality indicators remain well below industry averages, with gross and net non-performing loan ratios at approximately 1.55% and -1.36%, respectively, as at September 2025. Capital adequacy also remains strong, with a capital adequacy ratio of around 23.66%, comfortably above the Central Bank’s minimum requirement of 14% for large licensed finance companies.

The Stable Outlook reflects expectations that LB Finance will sustain its market position, credit quality and performance metrics, while continuing to diversify its loan portfolio and manage funding sources prudently.

Taj Samudra Colombo commemorated India’s 77th Republic Day on its premise on 26 January 2026. The Indian Flag was hoisted by Taj Sri Lanka and Maldives Area Director Samrat Datta, in a ceremony attended by team members and resident guests. The celebration concluded with warm greetings and the enjoyment of delectable refreshments, reflecting the true spirit of unity and togetherness.

Industry leaders and sustainability advocates met at Thema Collections’ Amba Yaalu, Kandalama recently to discuss avenues of practical change and growth toward positioning Sri Lanka as a sustainability-led tourist destination.

The discussions focused on environment responsive tourism, drive toward zero plastic usage, climate focused investments and data-driven decision making geared toward sustainability and profitability.

Global leader on environmental development and Norwegian diplomat Erik Solheim kicked off the symposium, stressing on Sri Lanka’s biggest strength in attracting tourists, its beauty and culture within a framework of compactness. ‘Tourism is probably the greatest job created on the planet, for both the highest qualified and those with lesser qualifications. Sri Lanka can benefit from lessons learnt from the rest of the world to safeguard and enhance her environmental assets, increase Electric Vehicle penetration, better utilise renewable energy sources, move toward eliminating single use plastics and create greener cities by facilitating walking and biking, especially with regard to tourists’ he said. He cited examples toward sustainable and eco-friendly practices of India, touting Tamil Nadu’s eco circuit from Chennai to Rameshwaram and the combined solar and hydro power facility of Andra Pradesh which is the largest in the world.

Thema Collection Chairman and Managing Director, Chandra Wickramasinghe highlighted the timely need of qualitative over quantitative tourism. The bold and innovative leader who opened the first hotel in the East Coast in the immediate aftermath of the Sri Lankan civil war with Maalu Maalu Resort and Spa, Pasikudah stated that the risk he took was also a move toward economic reconciliation. ‘terrorism and tourism will never blend in with each other and today we are fighting terrorism against the environment,’ he said, stressing on the importance of creating acceptable policies toward sustainability and poverty elimination, especially in the North and East. The pioneer in launching Sri Lanka’s first 100% women led hotel, Amba Yaalu Kandalama, Wickramasinghe bemoans the fact that women constitute only a mere 10% of the total work force of the hospitality industry. ‘The other significant foreign currency earners such as foreign employment and the tea and garment industries employ a much higher percentage of personnel ‘ he added.

Speaking on his fight against the use of plastic and the drive toward stringent regulations, Zero Plastic Movement Founder Nishshanka De Silva stated that even though the prime selling point of the tourism industry is the environment, it is a crime that Sri Lanka still uses nearly 20 million shopping bags, nearly 15 million lunch sheets and 10 million PET bottles daily, which adds to pollution and is a significant deterrent to sustainable tourism. Sri Lanka also recycles only about 3% of the total plastic produced. De Silva however is proud of a law which was passed recently which mandates that each and every plastic product manufacturer recovers 40% of the total production from the market. Failure to comply will initially result in penalties and ultimately in the cancellation of the manufacturer’s Business Registration. ‘Tourism is all about the environment, community and culture. ‘Our culture has no connection to plastic while the use of it destroys the environment and our community,’ he concluded.

Eco Treats Tourism Ltd. Chairman and Sustainable Tourism expert Dr. Samantha Pathirathna reiterated that agriculture, human settlement and biodiversity need to be integrated in a climate responsive manner. ‘We require a far greater understanding of our National Fiscal Plan and even though national and provincial level adaptation plans have been developed, it took the natural disaster Ditwa for the country to realise that we need climate responsive investments,’ he added.

Market Development Facility (MDF) Sector Coordinator Tourism Nimesha Palliyaguru contributed to the discussion by adding that data- driven decision making is imperative toward advancing sustainable tourism. A recent visitor flow analysis conducted by MDF has revealed that even though the number of tourist arrivals to the country has increased, the per day spend per visitor has dropped significantly. An approximate per day spend per visitor of $ 170 in 2018 is currently averaging below $ 140. As part of their ongoing efforts toward sustainable tourism development, MDF, in collaboration with a local tour operator, has launched the island’s first ever carbon calculated tour itinerary aimed at the EU market. ‘These methods attract EU visitors who are conscious of the environment, are willing to travel slowly yet spend more,’ she added.

Shangri-La Colombo has announced the appointment of Andreas Streiber as General Manager, effective immediately.

A distinguished hospitality leader with decades of global experience in upscale hotel operations, Andreas brings a proven track record of elevating guest and colleague engagement, strengthening operational excellence, and delivering sustainable financial performance.

Prior to joining Shangri-La Colombo, Andreas most recently served as General Manager of Shangri-La Bengaluru, India. His impressive 25-year journey with Shangri-La Group has seen him hold several senior leadership roles across China and India, contributing meaningfully to brand growth, service innovation, and performance excellence. In addition, Andreas brings valuable experience from internationally recognised hospitality brands including Hyatt Hotels and Mövenpick Hotels and Resorts.

With deep expertise spanning hotel operations, food and beverage, sales and marketing, financial planning, and talent development, Andreas is known for his strategic leadership, strong interpersonal skills, and unwavering commitment to service excellence. In his new role, he will oversee the overall strategic direction and day-to-day operations of Shangri-La Colombo, continuing to strengthen its position as one of the city’s most distinguished urban destinations.

Andreas shared: ‘I am delighted to take on this role at Shangri-La Colombo and to work alongside a passionate team committed to heartfelt hospitality. Colombo is a vibrant destination, and I look forward to building on the hotel’s strong foundations while creating meaningful experiences for our guests and colleagues alike.’

Asia Securities PLC Chairman Dumith Fernando said Sri Lanka’s equity market in 2026 is likely to be driven primarily by domestic investors, with interest rate stability and improving participation supporting valuations even without significant foreign inflows.

Taking a macro view of the market, Fernando said three factors would shape equity performance this year, starting with the interest rate environment. He said interest rates were likely to move within a range of 50 to 100 basis points (bps), which would not materially alter asset allocation decisions.

‘We don’t believe that level of interest rate movement will create significant dislocation for the equity asset class,’ he said, adding that relative attractiveness between equities and fixed income remained broadly unchanged.

Fernando cautioned against overly conservative index forecasts, noting that lower index targets implied either weak earnings growth or significant multiple compression. He said such outcomes would require a sharp rise in equity risk premiums, which he did not expect.

He said investor behaviour already reflected a growing appreciation of equities, supported by zero capital gains tax and a 15% withholding tax. According to data he cited, the number of active equity investors rose to about 98,000 last year, up from around 60,000 in 2024, while new Central Depository Systems (CDS) accounts opened increased from 19,000 to 57,000 over the same period. In the first three weeks of this year alone, about 5,000 new accounts were opened.

‘That trend of understanding the differential between fixed income and equity returns is still very much alive,’ Fernando said.

On foreign flows, the Chairman said global capital was increasingly seeking diversification rather than targeting emerging markets as a category. While he acknowledged positive sentiment towards emerging and frontier markets in 2026, he said Sri Lanka should not rely on foreign inflows to drive equity returns.

‘My outlook for 2026 is that we don’t really need foreign flows to drive the market up another 20-25%,’ he said, adding that any foreign inflows would be incremental upside.

Fernando said sustained improvement in sovereign credit confidence was critical to attracting foreign capital, particularly the ability to refinance external debt when it falls due in 2028. He said Sri Lanka’s financial ratios were broadly consistent with a single-digit sovereign rating, but stressed the importance of demonstrating policy consistency and institutional reform.

He also highlighted market liquidity as a constraint, noting that foreign investors invest in individual stocks rather than the index. ‘We need more stocks with large amounts of liquidity,’ he said, pointing to the need for more sizeable listed companies, including potential reforms involving State-owned enterprises.

Fernando said foreign investor interest was gradually broadening beyond traditional blue chips into growth-oriented sectors, including digital and telecom-related companies, but reiterated that deeper liquidity was essential for sustained foreign participation.

On fixed income, he said interest differentials remained attractive, particularly in local currency instruments, though he noted that larger inflows would require improved scale and market depth.