Category: Daily Financial Times

Sri Lanka pulled off a four-wicket win with 19 balls to spare against Afghanistan in their first Super Six match of the ICC Men’s Under19 World Cup played at Windhoek yesterday.

Inviting Afghanistan to bat first Sri Lanka restricted them to a total of 193 with their spinners tying up the Afghanistan batting. Osman Sadat top scored for them with 61 off 107 balls (3 fours) while the successful bowlers for Sri Lanka were seamer Kugathas Mathulan (2/62) and left-arm spinner Viran Chamuditha (2/20).

Sri Lanka lost Chamuditha in the first over for one, but all-round contributions from the middle order ensured they reached their target comfortably.

Senuja Wekunagoda was the highest scorer with 43 off 79 balls (5 fours) but Chamika Heenitagala took the Player of the Match award for steering his team to victory with an unbeaten 22 to add to his 1/19 of 8 overs.

Sri Lanka play South Africa at Bulawayo on Thursday in their second Super Six match.

Scores: Afghanistan (U19) 193 (49.5) (Osman Sadat 61, Faisal Shinozada 22, Azizullah Miakhil 43, Roohullah Arab 22*, Kugathas Mathulan 2/62, Viran Chamuditha 2/20)

Sri Lanka (U19) 194-6 (46.5) (Dimantha Mahavithana 37, Senuja Wekunagoda 43, Kavija Gamage 25, Chamika Heenatigala 22*, Dulnith Sigera 30, Roohullah Arab 2/23)

Sri Lanka Customs officials must be rewarded through a fairer and more credible incentive system if the Government is serious about reducing corruption risks and sustaining reform, Finance Deputy Minister Dr. Anil Jayantha Fernando said yesterday, acknowledging that existing mechanisms remain weak and uneven.

Addressing an event at Sri Lanka Customs to mark International Customs Day, Dr. Fernando said officers had surpassed revenue targets despite what he described as ‘a working environment [that] is not conducive,’ and deserved recognition for delivering results under significant constraints.

‘It is a fact that there are some mechanisms to give you rewards, but those mechanisms have their own weaknesses,’ he said. ‘As a result, when some sectors of officials are rewarded, that negatively affects the other sector.’

Referring to what he termed ‘coercive ranks,’ Dr. Fernando said gaps in incentives and authority created space for bribery and allegations of misconduct. ‘Always that window is open for perpetrators to bribe because of these coercive ranks,’ he said, adding that the gap could ‘only be reduced by increasing your rewards in a very acceptable and vibrant manner.’

While noting that fiscal constraints persisted, he said discussions were under way on improving salaries and benefits at Customs and other enforcement agencies. ‘We will be doing these things in the future, but we need some more time,’ he said, pointing to the need for ‘sustainable and inclusive economic growth’ to support such reforms.

Dr. Fernando also stressed that Customs’ mandate extended well beyond revenue collection to border security, public health, food safety, and environmental protection-functions that often go unnoticed. ‘If there’s a delay, the accusation comes in,’ he said. ‘But people do not see how much pain is taken by Customs officers to release goods within a short period of time.’

He cited vigilance against dangerous and illicit items as evidence that Customs’ role ‘goes beyond revenue collection,’ adding: ‘Our vigilance is highly commended, especially in drugs and other things.’

The comments come as Sri Lanka Customs reports record revenue performance alongside renewed reform momentum.

Sri Lanka Customs Director General Seevali Arukgoda said the Department had concluded ‘the most successful year in its institutional history,’ combining revenue growth with trade facilitation and social protection.

In 2025, Customs collected Rs. 2,257 billion, surpassing the national target of Rs. 2,231 billion and recording the highest-ever collection. Revenue from general cargo rose by 18%, while direct enforcement contributions reached Rs. 32 billion, reflecting a 10% year-on-year (YoY) increase.

Arukgoda said reforms were being advanced with the support of development partners, including the International Monetary Fund (IMF) and the World Bank, to strengthen institutional integrity and operational efficiency. A recent Memorandum of Understanding (MoU) with the Inland Revenue Department (IRD) on data-sharing and parallel audits is expected to deter undervaluation and overvaluation through coordinated enforcement.

Progress has also been made in trade facilitation through expanded digitalisation, the introduction of applications such as ‘Track My CusDec’ and ‘Motor Vehicle Verification,’ and the extension of the Authorised Economic Operator program to include micro, small and medium-sized enterprises (MSMEs). Advance rulings covering tariff classification, valuation, and rules of origin have also been expanded in line with Trade Facilitation Agreement commitments.

For 2026, Sri Lanka Customs has been assigned a revenue target of Rs. 2,207 billion, which Arukgoda said the Department was confident of achieving. The primary strategic focus this year is the full digitalisation of remaining manual procedures to reduce face-to-face interactions and improve transparency.

Plans are also under way to establish a cargo examination yard at Kerawalapitiya by 2027, which would reduce physical examinations from 40% to 10%, easing congestion and supporting trade growth.

Other initiatives planned for 2026 include pre-arrival clearance, paperless cargo clearance, automated risk management, electronic cargo tracking, and an electronic bidding system for goods disposal. Customs also released the Time Release Study 2025, conducted under World Customs Organisation (WCO) guidelines, to identify bottlenecks and support evidence-based reform.

A new Code of Ethics and Conduct, developed with guidance from the IMF, World Bank, WCO, United Nations Development Programme (UNDP), the Presidential Secretariat, and Commission to Investigate Allegations of Bribery or Corruption (CIABOC), will be issued this week as a binding departmental order.

The reform agenda mirrors concerns raised in the IMF’s 2023 Governance Diagnostic Assessment, which found Sri Lanka’s revenue administration structurally vulnerable to corruption due to fragmented institutions, weak oversight, and wide discretionary powers. The report noted that Customs, the IRD, and Excise largely operate in silos, with corruption risks highest at points of direct interaction such as valuation, classification, concessions, and refund processing.

‘Exposure to corruption in customs and tax administration is substantial,’ the IMF said, citing weak performance monitoring, seniority-based promotions, flawed incentive structures, and leadership instability.

While digitisation-such as ASYCUDA at Customs-has reduced risks where implemented, the IMF warned that pervasive manual processes and weak data-sharing continue to undermine revenue integrity.

Against that backdrop, Dr. Fernando said reforms would succeed only if institutional incentives were addressed alongside systems. ‘We hope that with the development of the platform, we would be able to achieve this in the medium term,’ he said, assuring Customs officials of continued Government support.

– Pix by Lasantha Kumara

Customs Time Release Study 2025 shows steady gains, flags need for deeper reforms

Sri Lanka Customs recorded steady improvements in cargo clearance performance in 2025, but structural and procedural bottlenecks continue to constrain efficiency, according to the Time Release Study (TRS) 2025 released yesterday in conjunction with International Customs Day.

The study, the third national TRS following earlier exercises in 2014 and 2018, provides an updated benchmark of border clearance performance after a seven-year gap marked by the Easter Sunday attacks, the COVID-19 pandemic, and the economic downturn in 2023.

orsed by the World Customs Organisation, the TRS measures the time taken for goods to be cleared at the border and identifies procedural delays affecting legitimate trade. The publication of release-time indicators also supports Sri Lanka’s commitments under the World Trade Organisation’s (WTO) Trade Facilitation Agreement.

Based on transaction-level data extracted from the Automated System for Customs Data and terminal-operator records, the TRS 2025 placed greater emphasis on median release times to reflect routine clearance performance more accurately.

For seaport imports, the median release time declined to 51 hours and 32 minutes in 2025 from 54 hours and 19 minutes a year earlier, while the average release time improved by 7.6% to 76 hours and 43 minutes, indicating a reduction in extreme delay cases.

The study confirmed that Authorised Economic Operator (AEO) consignments continued to clear significantly faster than non-AEO cargo, reflecting the impact of risk-based controls. Structural differences between cargo types persisted, with Full Container Load imports clearing substantially faster than Less than Container Load cargo.

Air cargo imports recorded faster routine clearance than sea cargo, but the study highlighted substantial delays before Customs processing, driven mainly by the timing of declaration submission rather than Customs controls.

Overall, the TRS 2025 points to incremental gains in clearance efficiency, while highlighting the need for deeper reforms, including expanded pre-arrival processing, better coordination among border agencies, and further scaling of risk-based facilitation measures.

The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) successfully organised the Sri Lankan National Pavilion at Grne Woche, the world’s largest B2C trade fair for food, beverages, and agriculture, currently taking place in Berlin, Germany.

Grne Woche attracts over 400,000 international visitors annually and serves as a premier global platform connecting producers, traders, and consumers. This year’s exhibition holds special significance as Grne Woche celebrates its 100th anniversary, making Sri Lanka’s participation in this milestone event particularly meaningful.

At the Sri Lankan National Pavilion, a diverse range of high-quality products were showcased, including Ceylon Tea, Ceylon Cinnamon, coconut-based products, handicrafts, gems and jewellery. These products received a warm and positive response from buyers and visitors from across the world, highlighting Sri Lanka’s strong potential in international markets.

As the main organiser of the Sri Lankan National Pavilion, AHK Sri Lanka is convinced that Grne Woche provides an excellent platform for Sri Lankan small and medium-sized enterprises (SMEs). The exhibition enables exporters to explore opportunities to enter the EU and German markets, connect with potential buyers and partners, and gain valuable insights into consumer preferences in international markets.

Cinnamon Miracle Chairman Gihan De Silva, stated ‘Being part of the Sri Lankan National Pavilion allowed us to showcase the authenticity of Ceylon Cinnamon. The interest from German and EU buyers was positive, and this platform has helped us better understand market requirements.’

‘This was a great opportunity for SMEs like us to test our products in the EU market. Direct interaction with consumers helped us gain insights that are difficult to achieve through other channel, ‘

added Wild Rabbit CEO Indika Siriwardana.

‘Trade fairs such as Grne Woche are powerful platforms for Sri Lankan exporters and SMEs. With the right strategy and consistent participation, we can increase the visibility of our products, strengthen buyer confidence, and unlock bigger opportunities across the EU and German markets.’ AHK Sri Lanka Head of Corporate Affairs and Export Promotion Malintha Gajanayake mentioned.

The pavilion was honoured by the visit of Ambassador of Sri Lanka to Germany, Varuni Muthukumarana, along with officials from the Sri Lankan Embassy in Berlin, who extended their support and encouragement to the participating Sri Lankan exporters.

As the official representative of bilateral economic relations between Sri Lanka and Germany, AHK Sri Lanka remains firmly committed to supporting Sri Lankan SMEs in accessing the EU and German markets, fostering trade partnerships, and promoting Sri Lanka’s products on global platforms.

Hutch is reshaping Sri Lanka’s digital landscape with the launch of ‘Hutch 15’, a breakthrough smartphone plan offering non-stop access to 15 most essential apps in one subscription.

The thoughtfully curated plan covers popular applications that adapt to people’s interests, but importantly includes a host of apps to upskill, equip and improve efficiency of Sri Lankan citizens, contributing to personal enrichment and national productivity.

The plan covers a well-rounded portfolio of apps ranging from communication, professional upliftment, AI and collaboration platforms, and has kept all main social network platforms and streaming apps inclusive.

Hutch 15 powers exciting inclusions of unlimited access to ChatGPT, Gemini, Discord and LinkedIn going far beyond traditional entertainment centric plans. It is purpose-built to accelerate AI adoption, digital learning, professional development, and entrepreneurship, empowering Sri Lankans to succeed in an expanding digital-first world.

Other apps include communication, knowledge, media and e-commerce enabler platforms such as WhatsApp, YouTube, Instagram, TikTok, Facebook, X, Telegram, Messenger, Snapchat, Viber and Imo which are accessible non-stop throughout the subscription period. The plan also features additional 35GB of Data for everything else, Unlimited calling to Any network, and a Freeloaded credit of Rs. 100 that could be used to trial a range of Digital Value-added services the company hosts.

The Hutch 15 plan brings together a comprehensive digital ecosystem to any smartphone user. Priced at an all-inclusive subscription of just Rs. 1,199 per month, it is a simple enough and affordable enough plan for anyone, which is backed by a resilient and robust network that spans across the country.

Hutch Chief Marketing Officer Hamdhy Hassen said, ‘Hutch 15 is a result of our belief, that to empower citizens, we need to design products that induce trial and nurture repeat use. To transform lives, our products and user journeys must be designed to remove psychological barriers and promote digital exploration without costing a premium. More than just a plan, Hutch 15 is a gateway to growth, self-expression, and opportunity for everyone.’

The plan can be conveniently subscribed via the company website www.hutch.lk on e-SIM devices instantly or on standard SIM for new users, whilst Hutch users can subscribe via the Hutch App or recharging the price.

Sri Lanka’s globally renowned gem and jewellery industry has received a timely boost with the introduction of a revised tax calculation method for gem imports. The new framework for applying the Social Security Contribution Levy (SSCL) and Value Added Tax (VAT) is expected to ease the financial burden on importers, revive declining import volumes, and strengthen the country’s gem export performance.

The announcement was made by National Gem and Jewellery Authority (NGJA) Chairman and Chief Executive Officer, Dr. S.B. Chaminda, at a recent media briefing in Colombo. He explained that the earlier tax regime introduced from 1 January 2024, had unintentionally slowed down gem imports and negatively impacted the broader industry.

Impact of the previous tax structure

From January 2024, gem imports were subjected to 18% VAT and 2.5% SSCL, calculated on the declared value of the imported gem parcels.

While the objective was to widen the tax base and enhance revenue, the outcome proved challenging for the gem trade. According to Dr. Chaminda, gem imports declined sharply during 2024 and 2025 compared to 2023, as the higher tax burden discouraged traders from importing raw stones. This decline was not confined to import volumes alone. Instead, it triggered a cascading effect across the entire gem and jewellery value chain, with serious economic, employment, and export consequences for Sri Lanka.

Cascading impact on gem industry

n Reduced availability of raw gems for cutting and polishing

Sri Lanka’s gem industry depends heavily on the continuous inflow of raw stones-both locally mined and imported-for cutting, polishing, heat treatment, and jewellery manufacturing. When import volumes fell due to the high tax burden, lapidary centres and processing units faced shortages of raw material. This resulted in underutilisation of cutting and polishing facilities, idle machinery and workshops, reduced productivity among skilled gem cutters, and delays in fulfilling international orders. Since value addition is a core strength of Sri Lanka’s gem industry, any disruption in raw material supply directly weakens the country’s competitive advantage in global markets.

nLower re-export volumes

Sri Lanka functions not only as a gem producer but also as a regional processing and trading hub. Many imported stones are cut, polished, certified, and re-exported to markets such as the United States, Europe, the Middle East, and East Asia. With fewer raw gems entering the country, re-export volumes declined, international buyers shifted to alternative markets, long-term supply relationships were disrupted, and Sri Lanka’s presence in global gem supply chains weakened. The reduction in re-exports meant fewer high-value shipments leaving the country, directly affecting national export performance.

nLoss of foreign exchange earnings

Gem and jewellery exports are a key source of foreign currency inflows for Sri Lanka. When re-export volumes declined, so did foreign exchange earnings. This resulted in reduced export revenue, a lower contribution to the balance of payments, reduced availability of foreign currency for essential imports, and increased pressure on the exchange rate. At a time when Sri Lanka has been striving to strengthen its external sector, the slowdown in gem exports added further strain to the economy.

n Reduced employment in value-added activities

The gem industry supports thousands of livelihoods across gem cutting and polishing, jewellery manufacturing, certification and grading, trading and logistics, and retail and export operations. With fewer gems being imported and processed, many small and medium enterprises experienced declining order volumes, leading to reduced working hours, temporary layoffs, income losses for skilled workers, and slower recruitment of young trainees. As gem processing is a labour-intensive industry, any contraction has a direct and immediate impact on employment, particularly in rural and semi-urban regions.

Strategic risk to a traditional export industry

Sri Lanka has built a strong international reputation over centuries as a source of high-quality sapphires, rubies, and rare gemstones. This reputation is supported not only by natural resources, but also by skilled craftsmanship, reliable export standards, ethical sourcing, and strong global buyer confidence. When the industry slowed due to policy-related cost pressures, it posed a strategic risk. Market share could shift to competing countries, buyer confidence could weaken, Sri Lanka’s brand value in the gem trade could erode, and long-term industry sustainability could be threatened. In global markets, consistency and reliability are crucial, and even short-term disruptions can result in permanent loss of market presence.

The revised tax calculation method

Recognising the need for a more practical and industry-friendly approach, the authorities have introduced a simplified and concessionary tax system. Instead of taxing gem imports based on their declared market value, the new method assigns standardised reference values to imported gem parcels based on the type of stones.

In Sri Lankan Rupees, the tax payable is approximately Rs. 57,195 per kilogram for precious stones and Rs. 3,200 per kilogram for semi-precious stones. This represents a significant reduction compared to the earlier system, where taxes were calculated on the full declared commercial value of gem parcels.

Key advantages of the new system

The revised tax framework significantly eases the financial pressure on importers by introducing predictable and manageable tax costs. This improves cash flow stability and enables better business planning, particularly for small and medium-scale operators. Lower tax exposure reduces the incentive for under-invoicing and informal trading practices, thereby promoting greater compliance, transparency, and regulatory discipline across the sector. With taxes no longer acting as a major deterrent, gem imports are expected to recover steadily, ensuring a consistent supply of raw materials for downstream value-added activities. Improved availability of raw gems will strengthen cutting, polishing, and jewellery manufacturing operations, enhancing Sri Lanka’s export competitiveness. Importantly, the reduced tax burden lowers entry barriers for new businesses and creates opportunities for young entrepreneurs to enter gem importing, lapidary work, jewellery manufacturing, and re-export operations.

Strategic importance for Sri Lanka’s economy

The gem and jewellery sector plays a vital role in export earnings, employment generation, rural economic development, and tourism-linked retail trade. Sri Lanka is internationally recognised for its blue sapphires, cat’s eye chrysoberyl, and a wide range of precious and semi-precious stones. Maintaining competitiveness therefore requires not only product quality, but also a supportive and realistic policy environment.

Should Income Tax exemptions on gem exports be reconsidered?

Historically, income earned from gem exports in Sri Lanka was exempt from Income Tax, a policy that helped position the country as a competitive global gem trading hub. The removal of this exemption, though intended to broaden the tax base, has reduced Sri Lanka’s relative attractiveness compared to competing gem-exporting centres such as Thailand, Hong Kong, Dubai, and certain African markets. Given Sri Lanka’s urgent need for foreign exchange and economic recovery, policymakers may need to reconsider targeted tax incentives for strategic export industries such as gems and jewellery.

The international gem trade is highly mobile, with traders and processors able to relocate quickly to jurisdictions offering lower tax burdens, faster regulatory approvals, and export-friendly policies. Reintroducing Income Tax exemptions could attract international gem traders to Sri Lanka, encourage regional trading hubs to relocate operations, and increase re-export and processing activity.

Gem exports generate high-value foreign currency earnings with relatively low import dependency. Even modest export growth can significantly strengthen the balance of payments, stabilise the exchange rate, and support essential imports. In this context, tax exemptions should be viewed not as revenue losses, but as strategic investments that multiply foreign currency inflows and long-term fiscal sustainability.

Policy balance and way forward

The experience of 2024-2025 demonstrates that excessive tax pressure can be counterproductive. Lower import volumes reduce VAT collections, export earnings, employment contributions, and foreign exchange inflows. The revised tax model adopts a balanced approach that ensures reasonable revenue for the Treasury while supporting industry sustainability and long-term growth.

To maximise the benefits of the new regime, policymakers and industry stakeholders should streamline Customs procedures, enhance gem certification and valuation standards, expand lapidary training programmes, promote Sri Lanka’s gem brand internationally, and develop digital gem trading platforms.

Conclusion

The revised SSCL and VAT calculation method marks a positive turning point for Sri Lanka’s gem and jewellery industry. By replacing a value-based tax system with a fixed-rate model, the Government has addressed industry concerns, reduced operational costs, and reopened growth opportunities for importers and exporters alike. Reconsidering targeted Income Tax exemptions on gem export income could further transform Sri Lanka into a global business hub for gemstones, boosting foreign exchange inflows, creating employment, and strengthening economic resilience. With renewed investor confidence and a supportive fiscal framework, Sri Lanka’s gem sector is well positioned to reclaim its place on the world stage.

Anchored in its long-term commitment to create a sustainable future for Sri Lanka and beyond, Commercial Bank of Ceylon has advanced its ‘ForwardTogether’ sustainability journey by hosting ‘ForwardTogether 2026: Partnering for a Sustainable Corporate Future,’ a focused engagement designed to translate sustainability dialogue into practical action with customers.

The event brought together a curated audience of Corporate and Personal Banking customers, senior representatives of the Bank, and sustainability specialists from the International Finance Corporation (IFC). Translating vision into action and building on the momentum of its landmark national Sustainability Summit, ForwardTogether 2026 was conceived as a sub-initiative under the Bank’s wider ForwardTogether platform, with a sharper emphasis on customer partnership, capacity building and operationalising outcomes between Summit editions, the Bank said.

The session was designed as a high-level engagement to share global and local perspectives on how sustainability is reshaping business competitiveness, investment decisions and long-term resilience. It underscored the growing importance of partnerships between banks and customers as expectations from regulators, markets and investors evolve, and as climate considerations increasingly influence economic outcomes.

A key highlight of the program was a technical presentation by IFC Senior Industry Specialist and Global Product Lead Quyen Thuc Nguyen, titled Climate Change Risks and Green Investment Opportunities. Drawing on global experience, the session offered practical insights into how businesses can reduce risk exposure, improve operational efficiency and unlock sustainable investment opportunities while strengthening long-term value creation.

The event also featured a panel discussion that brought together Commercial Bank Managing Director and CEO Sanath Manatunge, University of Moratuwa’s Professor Ajith De Alwis, and IFC’s Quyen Thuc Nguyen. Moderated by Sri Lanka Institute of Information Technology Researcher Dr. Gayashika Fernando, the discussion explored the role of partnerships, innovation and responsible finance in accelerating sustainable corporate transformation in Sri Lanka, highlighting the need to move from strategy and measurement to action and collaboration.

The ForwardTogether theme was introduced in 2025 by Commercial Bank as a collaborative national platform to convene policymakers, business leaders, development partners and civil society around Sri Lanka’s sustainability and climate agenda. Since then, the bank has sought to carry that collective commitment forward through continued engagements that deepen impact. The bank said ForwardTogether 2026 reflects this intent, reinforcing the bank’s belief that meaningful progress on climate action and sustainable development depends on close collaboration between financial institutions and the real economy.

ForwardTogether 2026 is closely aligned with the bank’s ongoing work to embed sustainability into its core business strategy. As outlined in its Annual Report, sustainability at Commercial Bank is guided by a structured three-pillar approach, with climate action as a central strategic priority. In this context, the bank is developing a comprehensive Climate Transition Plan aligned with national climate ambitions and global best practice, recognising that its climate impact extends beyond its own operations to include emissions associated with its financing activities.

Through its strategic partnership with IFC as knowledge partner, Commercial Bank has adopted the Partnership for Carbon Accounting Financials methodology to assess financed emissions across its portfolios, enabling deeper insight into transition opportunities among selected customers. Platforms such as ForwardTogether are intended to bridge this analysis with customer-facing engagement, supporting clients to understand transition pathways, identify green opportunities and align investments with more sustainable business models.

Initiatives under the ForwardTogether umbrella are designed to make sustainability practical, relevant and value-creating for customers. By combining global expertise, local context and long-standing customer relationships, Commercial Bank continues to position itself not only as a provider of finance, but as a trusted partner and catalyst for sustainable economic transformation.

Through ForwardTogether, Commercial Bank is strengthening its leadership in sustainable banking by supporting customers, communities and the wider economy in progressing towards a more resilient, inclusive and sustainable future.

COMMENTS

C M Holdings PLC said it has entered into a Sale and Purchase Agreement with Vogue Real Estate Ltd., to dispose of a property located in Thalangama South for Rs. 260 million.

The company said the agreement was executed on 21 January. The land, as depicted in Plan No. 3597 dated 27 June 2006 prepared by Licenced Surveyor M.L.N. Perera, has a total extent of A 00-R 02-P 29.20 (around 109.20 perches at Rs. 2.38 million a perch).

C M Holdings said the purchaser has paid Rs. 26 million as an advance, with the balance Rs. 234 million payable on or before 31 March 2026.

The company added that the Deed of Transfer will be executed upon receipt of the full purchase consideration, in line with the terms and conditions of the agreement.

C M Holdings’ share prices closed Rs. 0.70 lower yesterday at Rs. 59.60.

As of end-September 2025, the company reported net assets of Rs. 467 per share at group level and a retained earnings reserve of Rs. 6.8 billion on a Rs. 8.45 billion balance sheet at group level.

Its biggest shareholder was The Colombo Fort Land and Building PLC with a 63.49% stake.

The Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) has donated Rs. 50 million to the Government’s ‘Rebuilding Sri Lanka’ Fund, established to support national recovery efforts following the recent disaster.

The SLCPI noted that the donation is intended to support efforts to strengthen health services and assist in rebuilding essential infrastructure. The Chamber further stated that the contribution will support the Ministry’s disaster management activities and help ensure that critical public services, including healthcare, can continue without disruption during the recovery period.

SLCPI President Shantha Bandara said: ‘Sri Lanka’s recovery will depend on keeping essential services running while rebuilding what has been damaged. Through this contribution, the pharmaceutical industry is supporting the immediate needs of disaster response and the longer-term work of restoring resilience across the health system. It is a collective commitment from our members to act responsibly, mobilise support at scale, and contribute to national rebuilding in a practical way.’

Health and Mass Media Minister Dr. Nalinda Jayatissa said: ‘We appreciate the SLCPI’s contribution to the ‘Rebuilding Sri Lanka’ Fund. Support of this nature is important to sustain essential health services during times of national challenge and to strengthen service delivery as recovery efforts move forward.’

The SLCPI serves as the apex representative body for over 70 member companies, comprising importers, manufacturers, distributors, and retailers, who collectively account for more than 80% of the island’s private pharmaceutical market. The industry directly employs over 80,000 individuals and indirectly supports nearly 400,000 more, making it a vital contributor to the national economy and healthcare delivery.

Union Bank Horana Branch relocated to a new and spacious premises at No. 99A1/A, Somananda Mawatha, Horana, further strengthening its presence in the Horana area whilst offering an enhanced banking experience to customers. The new premises offers an all-new private banking space for Elite Circle members, meeting/conference facilities for customers and the luxury of ample parking in a busy town. Customers, management and staff joined, Director/CEO Dilshan Rodrigo to open the branch at the new premises.

The Central Bank every year beginning from 1997 conducts a remembrance service in the morning of 31 January to tell the new Central Bankers of the gruesome attack by the LTTE on the country’s key financial institution, the Central Bank, on that day in 1996. The objective of the LTTE was to destroy the bank, create mayhem in the financial system, weaken the economy, and thwart the Government’s efforts to fight the LTTE which had been conducting a bloody campaign for a separate state.

To destroy the Central Bank, the LTTE rammed a lorry packed with a powerful bomb into the bank’s premises, used its foot soldiers to give cover to the lorry and annihilate the surviving Central Bank officers with machine gun fire, and complete the job which the bomb could not do by overrunning the bank. They could not have chosen a better day for the attack since the security measures in the city of Colombo had been eased that day because the top brass of the Government, including the President, had not been in the city. They all had travelled to Anuradhapura to open the new Rajarata University there and most of the security contingents had been transferred to provide extra security to them. Hence, it was a field day for the LTTE in Colombo.

Worse, none of the private sector or Government institutions in the perimeter of the target had pre-training for their staffs as to how they should respond to such an unexpected catastrophe. There was no system of warning either to the commuting public or the officers working in those institutions about an oncoming attack and take cover until it was safe for them to move out. They were all sitting ducks to the LTTE which wanted nothing but to create the maximum terror in the city of Colombo. In the Central Bank, business was as usual, and everybody had gone about their daily routines without the slightest fear of an attack that was to unfold on them that fateful morning.

This writer who was the Director of Rural Credit of the Central Bank whose office was situated on level 6 of the Cargo Boat Development Building opposite the Central Bank and had just finished a meeting with some outside parties and attending to his daily work. Governor A. S. Jayawardena was having an important meeting with some officials when the attack was carried out.

The Central Bank’s unsung heroes rising to the occasion

Many casualties

The bomb explosion was sudden and unexpected. As desired by the LTTE, it created the maximum impact on human lives and physical property. Forty-one Central Bankers perished on the spot or after being transported to hospitals. More than that number of people died in surrounding institutions. About 1,200 central bank officers were seriously injured.

Two wings of the Central Bank building, an icon in the city, had been gutted by fire. The bank as well as the other institutions in the area surrounding the Janadhipathi Mawatha, the epicentre of the bomb explosion, instantly became non-functional and showed signs of becoming ghost institutions. It was total chaos of the highest magnitude, as if an earthquake had struck. For moment, it seemed the terrorists had attained their goal.

Display of unparalleled bravery and heroism

But that was not to be the case. The uninjured or not seriously injured Central Bank officers rose to the occasion like spring-held machines. They started rescuing those who had been injured or trapped in the debris, daring the deadly-scorching flames of a major fire that was ominously engulfing the skeletal bank building. With no electricity, it was dark inside the building. With no elevators, the injured were carried on shoulders using the staircase at the back of the building that had been dedicated as a fire-escape.

There were demonstrations of sympathy and empathy at the highest level and the usual camaraderie among fellow workers. Everyone worked as a team and that was shown by the Governor at the top and the lowest level of employee at the bottom. It had been unplanned, but they worked together like a team unconsciously coordinating the rescue operations. They all are unsung heroes of the Central Bank.

Governor Jayawardena used the metaphor of the Greek mythical story about the Phoenix rising from the ashes and declared boldly to a foreign news media agency: ‘This is the most heinous cowardice on the part of the terrorists, but they will not win here. We will rise from the ashes like the Phoenix in the mythical Greek story’. That was the slogan used by the Central Bank in its rescue, rehabilitation, renovation, reinvention, and redevelopment of the bank in the coming few years. That is a separate story that will be told later. This article will highlight some unsung heroes from that fateful day and the days immediately after.

Sugathadasa’s wisdom overtaking intelligence of the educated

One such hero was Sugathadasa who had been attached to the Rural Credit Department or RCD. He had joined the bank as a labourer in mid 1960s and regraded as a clerical officer but performing the same function as a minor employee. That was because he did not have the skills to perform as a clerk.

On this fateful day, at around 10.45 am, I heard the sounds like firecrackers outside. I did not pay any attention to it because that was a normal event in that area. But when I turned and looked back at the glass windows in the adjoining room facing the Janadhipathi Mawatha, almost all officers attached to RCD were looking down with animated gestures at the street below through the glass window. Compelled by curiosity, I too joined them and what I saw down there could be seen only in a thriller movie. Having failed to break through the iron barrier guarding the entrance to the foyer of the bank building, the lorry was reversing to make a final assault to break through it.

That barrier had been nicknamed the Karunatilake Barrier because it had been constructed by ex-Governor Neville Karunatilake to protect the bank from a possible terrorist attack. There were some dead bodies lying here and there in the street. It had been completely deserted except the attackers who had been armed with RPGs and AK 47machine guns. With eyes glued to the unfolding panorama below, we were watching the scenario excitedly without any feeling about the risk we were taking. At that time, I heard Sugathadasa shouting authoritatively back from behind asking us to retreat immediately to the centre of the office warning that the building was going to be blown up.

We had about 10 seconds to run back and take cover under the office desks as commanded by him. The bomb went off destroying the whole floor from one end to the other. The ceiling fell but we were safe because we had been safely packed under the desks. Later we found that the flying glass pieces had dug holes of about an inch deep on the walls and had we been standing, they would have gone through our bodies like bullets instantly killing or disabling us.

None in RCD got injured because of the timely warning given by Sugathadasa with good intentions and in all sincerity. He may not have been an educated person by the standards of the contemporary society, but his wisdom and the exercise of that wisdom in that critical moment were far superior to the so-called educated people like us. We all had intelligence, but not wisdom.

Security Officer Wijayawardhana’s act of bravery

Then, there was the Security Officer Wijayawardhana who had crawled to the iron door to the building and locked it to prevent the attackers from entering the area. If those suicide attackers had entered the building, the hundreds of people who had come to the bank that day to do business would have been an easy target. If it had happened, the death-toll would have risen to many hundreds. He took an enormous risk in performing this heroic act and saving the lives of many hundreds. Therefore, he was another unsung hero.

The officers of the Currency Department led by its workaholic Superintendent Captain R. G. Jayaratne were real heroes. The Currency Department is in the basement of the bank premises and once electricity is out, it is a dark cave lighted by some emergency lights dimly illuminating the exit points. The currency officers operate in this ‘dark cave’ as well as in the Banking Floor on the ground floor.

The team working on the Banking Floor had taken out some Rs. 900 million for the day’s operations. When the bomb exploded in front of the bank building, they were the first casualties since they were directly exposed to the bomb. It was a gruesome scene with debris scattered everywhere, dead bodies of fellow workers as well as customers piled up one over the other, and the flames of the fire reaching down threatening to scorch them to a painful death. The currency officers could have easily walked out of the building with bundles of currency notes they had taken out for business unnoticed. There could have been other intruders who also could have done the same. Though they had been very badly injured, they had protected the money as a snake-spirit would buried treasure, put the money back to trunks, and carried those trunks on their shoulders down to the dark cave where the bank’s vaults had been setup. In candlelight, they had redeposited moneys in the vaults, kept records, locked them up, and walked out of the bank building only after the work was over.

With the soot of the fire all over their bodies, they had looked exactly like some walking ghosts coming out of a hole in the earth. But that was the integrity, dedication, commitment, and love for the bank they had displayed on that fateful day. The gutted bank premises were no longer usable. But these heroic officers were ready to conduct currency operations as they had done before with a hitherto unused vault at the Treasury building and through the branches of the Bank of Ceylon.

A driver rescues many injured officers

There was a driver attached to the Small Farmers and Landless Credit Project, known in vernacular as the Isuru Project, who was a first respondent rescuer after the bomb blast. His name was Wijerama. This sternly built young man had carried many injured officers on his shoulders through the bank’s fire-escape to the waiting ambulances and other vehicles. He braved the spreading fire and examined every corner of the building for injured officers waiting helplessly until the needed help arrived. In his shuttling exercises between the bank building and the waiting ambulances, he had rescued dozens of people.

Here, I will mention about two important cases. One was the rescue of Dr. D. S. Wijesinghe. The other was the rescue of Dr. Leslie Gunaratne. Both could not move on their own or even crawl for safety because both legs had fractured due to the fall of heavy wooden cupboards. Dr. Wijesinghe who had a fragile physique due to a polio attack during childhood had been lying on the floor semi-unconscious when Wijerama had come to the floor to make one last look for any remaining victims in need of help. Since he could not see anyone, he had turned back to leave. At that time, he had heard a soft moaning coming from a dark corner of the floor. When he looked for the source, he had found Dr. Wijesinghe lying on the floor trapped under a cupboard that had fallen on his legs. With enormous physical might, he had moved the cupboard aside, lifted Dr. Wijesinghe as if he had been carrying a child and brought him to safety on his shoulders.

Dr. Gunaratne’s case was a little different. At the time of the blast, he had been in the bank’s library looking for a book standing in front of a heavy teak bookshelf. The blast had thrown Dr. Gunaratne to the floor and brought down a heavy shelf on his legs. With the consequential fracture in both legs, he could not move. It was at that time that Wijerama had appeared like a miracle and rescued him to a waiting ambulance. Both these officers would have succumbed to their injuries had Wijerama not rescued them. Because of Wijerama, both had got an extension to life and prospered in the bank. Later, after leaving the bank, Dr. Gunaratne became a professor of economics at the University of Brunei, while Dr. Wijesinghe retired from the bank as its Deputy Governor.

There was Winifreda Fernando, a poet, who died in the bomb attack. When her desk was examined later, as if by premonition, she had penned a poem a few days before her death which could be translated into English as follows: ‘Thousands of mouths might shout that you are dead; but out beating those voices, I say you are not dead and still living with us’. This poem was used as the epitaph of the memorial statue erected to remember those heroes who left us that fateful day.

How the bank had won loyalty of officers

I have mentioned only a few prominent cases here. Almost all the Central Bank officers functioned as rescuers that day. They are all unsung heroes worthy of appreciation. After 30 years, my understanding is that they all have retired from the bank and are presently living on meagre pensions fighting against the elevated cost of living.

When some of them were retired under an early retirement scheme in 2002, Governor A. S. Jayawardena gave them a solemn promise that they would in future be afforded the same facilities as those serving in the bank. In the past, the bank had kept this promise by duly recognising their service and granting a pension rise whenever a salary increase was accorded to serving bank officers. The objective was to look after them till their death, a principle which had been incorporated to all the welfare services that had been afforded to them when they were recruited to the bank. That was how their uncompromised loyalty was won by the bank.

Two years ago, there had been a thumping salary adjustment to those serving the bank. The pensioners had been ignored in this salary revision, and they are still waiting for a positive response to their repeated requests from the bank’s present management.