Category: Daily Financial Times

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.

AIA Insurance Lanka has appointed two eminent corporate leaders, Asoka Pieris and Deepthi Lokuarachchi, to its Board as Non-Executive Independent Directors.

These appointments demonstrate the company’s continued focus on adding considerable depth of experience, independent judgment, and strategic insight to its Board to support its growth trajectory.

Pieris brings to the AIA Board, a strong foundation in financial management and governance, supported by many internationally recognised professional qualifications. He has built a distinguished career spanning both executive and non-executive director roles across a range of industries, providing him with broad based cross-sector perspective and well-rounded insights. He is a Fellow of the Chartered Institute of Management Accountants (CIMA), UK, an Associate Member of the Institute of Chartered Accountants of Sri Lanka, and a Certified Global Management Accountant. Drawing on Pieris’s professional grounding and local and overseas experience, he provides to AIA Board, disciplined financial judgement and a clear focus on long term, sustainable value creation.

Lokuarachchi adds a rich blend of insurance and healthcare leadership experience, built over a distinguished career spanning multiple sectors functioning in Board and Executive capacities. He holds a Bachelor of Laws (LL.B) degree from the University of Colombo and is an Attorney at Law, having been admitted to the Bar of Sri Lanka. In addition, he is an Associate of the Chartered Insurance Institute of the United Kingdom and holds the professional designation of Chartered Insurance Risk Manager. His professional background offers invaluable perspectives on the integration of insurance and health care services. Lokuarachchi’s experience will particularly support AIA’s strategic focus on strengthening health insurance and related healthcare initiatives.

AIA Insurance Lanka Chairman Biswa Misra and Director/CEO Chathuri Munaweera, welcoming Pieris and Lokuarachchi to the Board, acknowledged their outstanding careers and wide-ranging experience across diverse sectors. They expressed their strong confidence that the depth of knowledge and perspectives of the new Non-Executive Directors will be invaluable in guiding the Company’s growth and success.

LB Finance PLC has secured $ 45 million in strategic funding from two leading Switzerland-based impact investors, responsAbility Investments AG and BlueOrchard Finance Ltd., a significant milestone in its growth trajectory.

The company said the long-term senior debt facilities comprise a $ 20 million facility from responsAbility Investments AG and a $ 25 million facility from BlueOrchard managed funds. The funding reflects strong alignment between LB Finance’s strategic priorities and the investors’ shared commitment to advancing inclusive financial access in emerging markets.

LB Finance Managing Director Niroshan Udage said: ‘This partnership marks an important step forward in LB Finance’s journey. With the support of responsAbility and BlueOrchard, we are strengthening our capacity to channel much-needed growth capital to Sri Lanka’s micro, small and medium-sized enterprise (MSME) sector, which plays a vital role in driving employment and economic progress. The confidence placed in us by globally recognised impact investors reaffirms the strength of our strategy and our commitment to responsible, inclusive lending.’

Access to stable and affordable foreign currency funding remains essential for expanding credit to under-served segments of the economy. This partnership enhances LB Finance’s funding base and liquidity position, enabling the company to accelerate the expansion of its lending portfolio, with a strong focus on the MSME sector, a key engine of Sri Lanka’s economic development.

The $ 45 million facility strengthens LB Finance’s balance sheet and positions the company to scale its MSME financing operations more effectively. By increasing access to affordable credit for local enterprises, the company said it aims to empower entrepreneurs, stimulate job creation, and contribute to broad-based economic recovery.

LB Finance Executive Director Ravi Yatawara said: ‘Securing this level of foreign currency funding in the current global environment underscores the strength of LB Finance’s fundamentals and our track record of prudent financial stewardship. These resources will allow us to deepen our reach among underserved businesses, particularly in sectors that support employment generation and export growth. We are grateful for the trust placed in LB Finance by responsAbility and BlueOrchard.’

The partnership was formalised at AFIFORUM 2026 in Bangkok.

BlueOrchard Finance Ltd., a member of the Schroders Group and the world’s first commercial manager of microfinance debt investments, has deployed over $ 10 billion across 100 emerging markets since its establishment in 2001. responsAbility Investments AG is a Swiss impact asset manager specialising in private market investments in financial inclusion, climate finance, and sustainable food, aligned with the UN Sustainable Development Goals (SDGs) and has deployed $ 17.6 billion in impact investments and manages $ 5.8 billion in assets across 330 portfolio companies in 70 countries. Since 2022, responsAbility has been part of M and G PLC, strengthening its global impact investing platform.

These investments build on LB Finance’s legacy as one of Sri Lanka’s leading non-bank financial institutions, with over five decades of operational excellence and a national long-term rating of A-(lka) with a Stable Outlook from Fitch Ratings.

The ‘Invest Sri Lanka’ Forum, jointly organised by the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka in Riyadh, was successfully held at the Radisson Blu Hotel, Riyadh Convention and Exhibition Centre on 24 January.

This was the first-ever capital market investor forum of its kind held in Saudi Arabia. The event highlighted potential investment opportunities in Sri Lanka’s capital market aiming to educate participants on the country’s economic progress and the latest capital market developments.

A high-level delegation participated in the forum, including Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Central Bank Governor Dr. P. Nandalal Weerasinghe, SEC Chairman Senior Professor D.B.P.H. Dissabandara, CSE Director Ray Abeywardena and CEO Rajeeva Bandaranaike, Lynear Wealth Management Co-Founder Dr. Naveen Gunawardane, and senior delegates from the SEC, CSE, and leading brokerage institutions.

Saudi-Sri Lanka Business Council Chairman Abdul Hadi Alqarni and the Board members of the Council participated as special guests in the event.

Delivering the welcome address, Ambassador of Sri Lanka to the Kingdom of Saudi Arabia Ameer Ajwad invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions-such as the Central Bank of Sri Lanka, the Securities and Exchange Commission, and the Colombo Stock Exchange-and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.

Deputy Minister Chathuranga Abeysinghe outlined the Government of Sri Lanka’s commitment to policy reforms and corruption-free governance and emphasised the importance of capital market development and foreign investment as key drivers of economic growth.

CBSL Governor Nandalal Weerasinghe delivered the keynote address outlining Sri Lanka’s macroeconomic recovery, financial sector reforms, and opportunities in the capital market, highlighting the country’s resilience and investor-friendly policies.

Addressing the ‘Invest Sri Lanka’ Forum, Saudi-Sri Lanka Business Council Chairman Abdul Hadi Alqarni emphasised the importance of the recently established joint Business Council in promoting economic collaboration between the two countries.

The Forum brought together a large number of Sri Lankan professionals from banking, finance, manufacturing, construction, and IT sectors, creating a dynamic platform for meaningful discussions. During the Q and A session, participants sought clarifications on regulatory frameworks, investment incentives, market access, and the latest developments in the Sri Lankan stock market, and responses were delivered by the relevant authorities.

The event concluded with a vibrant networking session, providing an opportunity for the Sri Lankan professional community to engage directly with senior officials from the Securities and Exchange Commission, Colombo Stock Exchange, and leading stock brokerage firms.

As the first-ever capital market investor forum, the ‘Invest Sri Lanka’ Forum made a remarkable contribution to information sharing, fostering collaboration, unlocking investment opportunities, and strengthening capital market participation among Sri Lankan professionals as well as the Saudi business community.

The Australian High Commission to Sri Lanka celebrated Australia Day 2026 with a reception on 23 January, hosted by Australian High Commissioner Matthew Duckworth.

The event was graced by Housing, Construction and Water Supply Minister Dr Susil Ranasinghe, as Chief Guest, along with distinguished representatives from government, civil society, the Sri Lankan and Australian business community, and the diplomatic corps.

The High Commission said: ‘Australia Day is an opportunity to reflect, respect and celebrate. We reflect on what it means to be Australian, celebrate contemporary Australia, and acknowledge the 65,000-year heritage of our land.’

‘This year’s event showcased Australia’s journey of culture, innovation and connection from the world’s oldest continuous culture to a modern global nation,’ it added.

The event celebrated Australia’s enduring friendship with Sri Lanka as Indian ocean neighbours. It highlighted the many connections that bridge this ocean, including our personal ties, education, partnerships in trade and development, and shared mission to secure a safe and prosperous region for all our people.

High Commissioner Duckworth said: ‘Australia Day is a moment for reflection as well as celebration. It reminds us of the diversity of our own nation, and of the values we share with partners like Sri Lanka: respect, resilience, and a commitment to a peaceful and inclusive future. Our countries are connected not only by history and geography, but by people, families, and communities who strengthen our relationship every day. In 2026, we look forward to expanding our cooperation and building an Indo Pacific region where all can thrive.’

The event included top quality Australian lamb, wine and cheese distributed by Sri Lankan vendors.

One of the top-class Tongan rugby players, 20-year-old Salesi Douglas Havea, arrived in Sri Lanka yesterday to play for Kandy Sports Club in the Super Round Cup segment encounters, which will commence this weekend in Colombo.

Kandy were the only team without a foreign player in Round 1. They will play CH and FC this weekend, followed by Havelocks and CR, with all matches away in Colombo. According to a reliable source, the Tongan will play as a forward. – (SJ)

A workshop to brief heads of 250 state institutions on establishing Internal Affairs Units was held yesterday (29) at the Sri Lanka Foundation Institute under the patronage of Secretary to the President Dr. Nandika Sanath Kumanayake, as part of the Government’s drive to build a clean and transparent public service.