Category: Daily Financial Times

Sri Lanka’s most ambitious urban development project reached a critical execution milestone, as construction officially commenced on the first residential development within Port City Colombo.

The milestone marks the transition of the country’s flagship Special Economic Zone (SEZ) from regulatory readiness to active private-sector delivery.

The project, Bay One Residences Colombo, is being developed by ICC Port City Ltd., an entity established by International Construction Consortium Ltd., (ICC), one of Sri Lanka’s most established and experienced construction companies with a long track record of delivering complex, large-scale developments to international standards. The development represents one of the earliest major Sri Lankan private-sector residential investments within Port City Colombo and plays a foundational role in activating the city’s mixed-use urban ecosystem.

ICC Managing Director/CEO Namal Peiris said: ‘Developed on 269 hectares of reclaimed land, Port City Colombo is now transitioning into a modern urban destination, with its first phase of infrastructure successfully completed. At the forefront of this evolution, Bay One Residences presents a rare first-mover opportunity, thoughtfully designed to enable residents to live, work, and unwind in a truly integrated environment, backed by ICC’s 45 years of trusted expertise in delivering landmark, large-scale developments.’

Situated on a 13,945-square-metre prime waterfront plot, Bay One Residences Colombo represents a total investment of approximately $ 112 million, inclusive of land and development costs. The development will comprise 231 luxury apartment units, designed to international standards and targeted at both local and international buyers seeking premium urban living within a globally benchmarked city environment.

The commencement of the first residential development also marks an important step in the broader evolution of Port City Colombo, which has been purpose-built as a multi-services SEZ with a transparent, rules-based regulatory framework, world-class infrastructure, and a long-term vision to position Sri Lanka as a competitive destination for global capital, talent, and services.

CHEC Port City Colombo Managing Director Xiong Hongfeng said: ‘The commencement of the first residential development at Port City Colombo marks a pivotal moment for the project. After years of planning and regulatory groundwork, this is the moment the city begins to take physical shape, where private-sector confidence turns into real, on-the-ground execution.’

The groundbreaking ceremony was held in the presence of senior national leadership, institutional stakeholders, and industry leaders, reflecting the strategic importance of the milestone within Sri Lanka’s broader urban development and investment landscape.

The event was graced by Chief Guest Finance, Planning and Economic Development Ministry Director General – Corporate Affairs Division Dr. Sulakshana Jayawardena and Guest of Honour Colombo Port City Economic Commission Chairman Harsha Amarasekera, PC.

The commencement of construction by ICC Port City underscores growing private-sector confidence in Port City Colombo and marks the steady progression of the SEZ from planning to active, on-the-ground delivery, as the city moves from vision to investable reality.

Professor G.L. Peiris (Prof. GLP) in a speech delivered on 12 December 2025 at the International Research Conference at the Faculty of Law, University of Colombo published in the Daily FT of 15 December 2025 under the caption ‘Presidential authority in times of emergency – A contemporary appraisal’ has critiqued the majority judgment of the Supreme Court of Sri Lanka in Ambika Sathkunanathan V. A.G. on the declaration of emergency by Ranil Wickremasinghe as Acting President on 17 July 2022 in response to the ‘Aragalaya’. The majority held that Wickremasinghe had violated the Fundamental Rights of the people by a Declaration of a state of emergency. The author was to attend this event but was unable to do so due to a professional commitment out of Colombo.

After citing authority from several foreign jurisdictions in support of his view of judicial deference to the Executive on matters relating to a state of emergency, he advances as one of the grounds as to why the majority were wrong in the Sri Lankan context is that the predisposition to judicial deference is reinforced by a firmly entrenched constitutional norm – ‘a foundational principle of our public law is the vesting of judicial power not in the courts but in parliament, which exercises judicial power through the instrument of the courts. This is made explicit by Article 4(c) of the constitution which provides ‘the judicial power of the People shall be exercised by Parliament through courts, tribunals and institutions created and established, or recognised by the Constitution, or created and established by law, except in regard to matters relating to the privileges, immunities and powers of Parliament and of its members, wherein the judicial power of the People may be exercised directly by Parliament according to law.’ Prof GLP opines that the majority judgment constitutes ‘judicial overreach which has many undesirable consequences’ including ‘traducing constitutional traditions; subverting the specific model of separation of powers reflected in our Constitution.’

Prof. GLP, is in effect advancing the view that the Sri Lankan Courts in the present constitutional framework of the 2nd Republican Constitution 1978 are subservient to the Executive or Parliament.

This view of Prof. GLP is, with respect, wrong on both constitutional principle and policy. There are no constitutional restraints on the judicial review of executive action in relation to declarations of emergency. Self-imposed judicial restraint may well constitute an abdication of judicial responsibility.

Unlike the Independence Constitution where a Separation of Powers (SOP) was found by judicial interpretation with the concomitant judicial power to even strike down post enacted legislation, the 1st Republican Constitution of 1972 explicitly did away with the concept of an SOP and instead whilst vesting sovereignty in the people, nevertheless made the National State Assembly the supreme instrument of state power exercising the Executive, Legislative and Judicial power of the people (vide Article 5). Resultantly the judicial review of enacted legislation was expressly done away with and instead pre-enactment review of a Bill tabled in Parliament by a Constitutional Court was provided for.

Indisputably this fundamental departure introduced by the 1st Republican Constitution was a direct response to the Queen V. Liyanage and the other judicial power cases where the Courts expressly recognised an SOP and the jurisdiction to even review the constitutionality of post enacted legislation.

But this doctrine of the abolishing of the SOP was subsequently abandoned, and one of the significant and welcome departures introduced by the 2nd Republican Constitution of 1978 was the explicit reintroduction into our constitutional framework of the principle of an SOP. This is made explicit by Articles 3 and 4 of the Constitution which vests Sovereignty in the people but proceeds to delineate how that sovereignty is exercised in terms of the trichotomy of the Executive, Legislative and Judicial powers and the further recognition of franchise and Fundamental Rights as also integral components of the sovereignty of the people.

Although the twin principles introduced in 1972 of a constitutional bar on the post-enactment review of legislation was retained together with the pre-enactment review of Legislation in the present 1978 Constitution, nevertheless the reintroduction of the SOP which guarantees the independence of the Judiciary is a fundamental feature of the present Constitution.

Although Article 4(c) of the present Constitution does state that ‘the judicial power of the People shall be exercised by Parliament through courts … recognised by the Constitution . except in regard to matters relating to the privileges, immunities and powers of Parliament and of its Members, wherein the judicial power of the People may be exercised directly by Parliament according to law’, nevertheless there is a cursus curiae of judicial authority by the Sri Lankan superior Courts that have recognised both the concepts of the SOP and the independence of the Judiciary from Executive or Legislative encroachment.

Leading cases which have recognised an SOP include Premachandra V. Monty Jayawickrema (1994) 2 SLR 90 (SC) and the Supreme Court Determination on the 19th Amendment to the Constitution (2002) in which the author appeared as Junior Counsel to the late Deshamanya H.L. De Silva P.C. The Supreme Court has recognised that the independence of the Judiciary is an intrinsic component of the present Constitution in several cases including the Court’s Determination on the Industrial Disputes Act (Special Provisions) Bill 2022. In fact a more explicit pronouncement was made in Hewamane V. De Silva where the Supreme Court held that judicial power vested solely and exclusively in the Judiciary (1983) 1 SLR 1 at 20.

Moreover the explicit vesting in the Supreme Court of Sri Lanka under Articles 125 and 126 of the exclusive jurisdiction to interpret the Constitution and in respect of Fundamental Rights underscores the preeminent role of the Judiciary in our constitutional framework. Foundational principles of the present Constitution as recognised by our Courts include the Rule of Law, power is a trust, and there are no unfettered discretions in public law. Regrettably Prof. GLP assails these welcome advances made in our public law jurisprudence.

In our constitutional setting of checks and balances and judicial oversight it is the function of the Judiciary to review the legality of Executive action, including matters relating to the declaration of a state of emergency and Emergency Regulations. The duty of interpreting an Act of Parliament if a function of Courts and not of Parliament (Court of Appeal in C.W.C. V. Superintendent, Beragala Estates 76 NLR 1). The author cited this decision to the Supreme Court in challenging the Inland Revenue Bill introduced by the late Mangala Samaraweera. That Court reiterated this principle and, agreeing with the author, ordered a referendum on a particular Clause.

Even in the pre-independence period up to 1948 where vide powers were conferred on the Governor who exercised Executive authority, the Courts have unequivocally reviewed the legality of executive action as manifest by the significant decision of the Supreme Court in 1937 in ‘In Re. Mark Anthony Lester Bracegirdle’, where the executive act of the Governor of arrest and deportation of Bracegirdle to Australia was reviewed by the Supreme Court and quashed. This decision was a striking assertion of judicial independence and is the first significant judicial review of executive action.

Moreover, the recent ruling given by the Speaker in Parliament on 9 January 2026, on the Opposition Motion to appoint a Select Committee to review recent appointments made by the Judicial Service Commission (JSC) to the Judiciary further buttresses the explicit recognition of the SOP and the independence of the Judiciary. The Speaker reiterated the commitment of Parliament to the doctrine of the SOP and refused the Motion on the basis inter alia that Parliament was not hierarchically superior to the Judiciary and cannot be permitted to control the judiciary by creating an oversight mechanism with regard to the JSC.

realme, the world’s fastest-growing smartphone brand, recently took another ambitious step in its journey to bring cutting-edge technology to the next generation by launching its newest model lineup in collaboration with Abans. Since its inception in 2018, realme has rapidly ascended to the global stage, now boasting over 300 million users and a massive digital community of 310 million social media followers worldwide. This latest launch in Sri Lanka underscores the brand’s commitment to delivering feature-rich, high-quality devices that resonate with young consumers’ aspirations.

The launch event, held at the Monarch Imperial, was a celebration of both innovation and the people who drive it. Senior management from both realme and Abans PLC, alongside the island’s retail sales force, joined together to mark a major milestone in a partnership built on trust and a shared vision for the future of Sri Lanka’s mobile market. The event provided key stakeholders with first-hand insights into realme’s latest offerings and the strategic direction of the brand.

Dr Chathura Jayawardana, Chief Marketing Officer of Abans PLC, delivered the opening remarks, stating:

“Our goal is to ensure the latest technological breakthroughs remain accessible to Sri Lanka’s youth by providing powerful, stylish companions for every digital lifestyle. Through our partnership with realme, we are making the future ‘real’ for everyone by bridging the gap between global innovation and local accessibility.”

Retail and market insights were later shared by Mr Manjula Silva, Senior General Manager – Retail Channel, who highlighted the increasing demand for smartphones that offer a “premium feel” without the premium price tag.

Mr Jagath Rathnayaka, National Sales Manager – OPPO and realme, took the stage to emphasize the critical role of the Abans retail network in bridging the gap between global technology and the local consumer. The night reached its peak when Mr Tilan Thennakoon, Category Head – Mobile and IT at Abans, officially unveiled realme’s newest model lineup.

The Power Trio: Built for Real Life

The new lineup is specifically curated for young, value-conscious users who need their tech to be as resilient as it is stylish:

realme Note 60x (4GB+64GB and 4GB+128GB): A durable daily driver built for longevity.

realme Note 70 (6GB+128GB): A sleek performer for the multi-tasking student or professional.

realme C71 (8GB+256GB): The powerhouse of the collection, offering massive storage and a battery that keeps up with a busy lifestyle.

The event also featured an interactive raffle draw, adding an engaging element to the programme, before concluding with a vote of thanks by Mr Shamala Dissanayaka, Head of Digital – Mobile and IT Retail.

By combining stylish design with reliable performance and competitive pricing, realme and Abans have reaffirmed their commitment to empowering Sri Lankans with meaningful, high-quality technology experiences.

The Joint Apparel Association Forum (JAAF) has elected Felix A. Fernando as its new Chairman at the Forum’s 22nd Annual General Meeting, marking the start of a new leadership term for Sri Lanka’s apparel industry at a pivotal stage of its development.

Felix Fernando succeeds Saifuddin Jaferjee, who concluded his tenure following a year shaped by significant global and domestic challenges, including evolving trade dynamics, regulatory pressures, and climate-related disruptions.

Reflecting on his tenure, the outgoing Chairman Jaferjee said: ‘This industry has once again demonstrated resilience in the face of uncertainty. I am confident that the incoming leadership will continue to advocate strongly for competitiveness, market access, and long-term sustainability, while keeping the collective interests of Sri Lankan apparel at the forefront.’

Accepting the role, JAAF Chairman, Felix A. Fernando, thanked the membership for its confidence and outlined his priorities for the period ahead.

‘It is a privilege to be entrusted with this responsibility at such an important juncture for both the industry and the country. Leadership in an industry body is ultimately about service, relevance, and delivering outcomes that strengthen our national export base,’ Fernando said.

Emphasising the need for continued evolution, Fernando added, ‘Sri Lanka’s apparel sector must remain globally competitive, agile, and outward-looking. JAAF will continue to work closely with policymakers and stakeholders to improve the ease of doing business, advance sustainability, and secure long-term growth for the industry.’

Fernando is the Chief Executive Officer and Managing Director of Omega Line Ltd. and brings over 35 years of manufacturing experience, including nearly three decades in Sri Lanka’s apparel industry. He has played a central role in building Omega Line into one of the country’s leading apparel export groups, employing over 15,000 people across multiple BOI-approved manufacturing facilities. A Fellow Member of CIMA (UK) and a Certified Global Management Accountant, he also brings strong international exposure through executive education at Harvard Business School, the Wharton School of the University of Pennsylvania, the National University of Singapore, and AOTS Japan. He is a recognised voice in industry leadership and policy dialogue on apparel exports and competitiveness.

The JAAF Executive Committee for 2026 will be chaired by Felix Fernando, with Aroon Hirdaramani and Hemantha Perera serving as Vice Chairmen. The Committee also includes past chairmen Saif Jaferjee, Sharad Amalean, A. Sukumaran, Noel Priyathilake, Azeem Ismail, and Ashroff Omar, providing continuity and institutional experience.

The duly appointed representatives of JAAF’s member associations are Husni Salieh of the Fabric and Apparel Accessory Manufacturers Association, Dhammika Fernando of the Free Trade Zone Manufacturers Association, Rajitha Jayasuriya of the Sri Lanka Apparel Exporters Association, and Wilhelm Elias of the Sri Lanka Apparel Sourcing Association. The appointed individual members of the Executive Committee are Mahesh Hirdaramani, Ajith Wijesekera, Jafar Sattar, Anis Sattar, Rehan Lakhany, Mahika Weerakoon, and Indika Liyanahewage.

As the apex body representing Sri Lanka’s shipping and agency community, the Ceylon Association of Shipping Agents (CASA) has, for decades, served as the collective voice of the maritime industry, engaging policymakers, regulators and stakeholders on matters that directly impact trade facilitation and national competitiveness.

From this vantage point, CASA observes a clear shift in the factors that determine maritime success. While Sri Lanka’s strategic location and port infrastructure remain important, the industry is increasingly shaped by how efficiently and coherently it operates as a digitally connected ecosystem. In a region where competing hubs are moving rapidly towards integrated digital platforms, digitalisation has become fundamental to sustaining Sri Lanka’s position in global shipping networks.

For the shipping industry, digitalisation is not about technology for its own sake. It is about reducing friction across the value chain, improving predictability, and ensuring that Sri Lanka remains an efficient and reliable node in international trade.

Beyond the Port: Digitalisation across the maritime ecosystem

While terminal productivity remains important, port efficiency is ultimately shaped by processes that extend well beyond the terminal gate. Vessel and cargo operations involve multiple stakeholders – shipping lines, agents, forwarders, terminals, haulers, Customs, port authorities and other border agencies.

When these entities operate on fragmented or partially digital systems, inefficiencies accumulate. Parallel submissions, manual interventions and inconsistent processes increase transaction costs and undermine service reliability.

CASA has consistently emphasised that digitalisation must be industry-wide and integrated. Isolated digital solutions, however well-intentioned, cannot deliver meaningful improvements.

Integrated industry solutions such as Port Community Systems should be fast tracked to add value to the logistics industry to enable seamless, real-time information exchange among all stakeholders, reducing delays, costs, and inefficiencies across the supply chain.

ASYHUB: Progress that must translate into outcomes

The introduction of ASYHUB by Sri Lanka Customs represents a positive step toward modernising trade processes. The move towards electronic manifest submission and enhanced pre-arrival data exchange aligns Sri Lanka with global best practices and has the potential to improve clearance timelines.

From an industry perspective, however, the effectiveness of ASYHUB will depend on execution. The platform must be fully integrated with terminal operating systems, carrier platforms and the broader Port Community System to avoid duplication and manual reconciliation.

Digital initiatives should yield improved and measurable outcomes enabling real-time coordination among stakeholders, data driven decision-making and faster cargo flow – and not replicating existing processes in electronic form.

The Maritime National Single Window: From intent to implementation

Sri Lanka’s Maritime and National Single Window initiatives reflect the right strategic intent: a single point of submission for regulatory requirements. For industry stakeholders, the objective is straightforward – one submission, shared data and coordinated approvals.

Progress to date has been uneven, and partial implementation risks creating additional layers rather than simplification. CASA believes that clear governance, defined accountability and enforceable timelines are essential if the Maritime and National Single Window solutions are to deliver tangible efficiency gains whilst meeting international mandates.

Digitalisation as a driver of resilience

Recent operational disruptions, including adverse weather events affecting vessel schedules, have underscored the importance of digital readiness. While such disruptions are unavoidable, prolonged congestion and administrative delays are not.

Ports, maritime, and trade systems that are digitally integrated recover faster by enabling pre-arrival processing, dynamic re-sequencing and coordinated decision-making. This reinforces the view that digitalisation is not only an efficiency related tool, but a resilience mechanism as well

A measured but urgent call for action

Sri Lanka’s maritime industry operates in an environment of increasing competition and diminishing tolerance for inefficiency. Shipping lines have the flexibility to adjust networks in response to cost and reliability considerations.

Digital transformation must therefore be coordinated, consultative and outcome-driven.

Systems should reduce costs, simplify processes, and enhance predictability for all stakeholders. They should be governed in a manner to contribute to strengthening the country’s competitive position and to continuously improve Logistics and Port Performance.

CASA supports digital reforms that strengthen Sri Lanka’s maritime ecosystem while recognising the operational realities of the industry.

Opposition Leader Sajith Premadasa recently convened a meeting with Micro, Small and Medium-sized Enterprise (MSME) stakeholders to engage in a comprehensive discussion on the critical challenges currently confronting the sector.

During the meeting, stakeholders highlighted issues such as cash flow constraints, high taxation, rising operational costs, currency volatility, and regulatory bottlenecks that continue to place immense pressure on MSMEs.

Premadasa assured participants that he will take these concerns forward by arranging discussions with the Committee on Public Finance (CoPF) and by engaging with the Finance Ministry, which operates under the authority of President Anura Kumara Dissanayake, with the objective of seeking practical and timely solutions.

The MSME representatives extended their appreciation to Premadasa for his consistent advocacy and strong representation of the MSME community. They said his willingness to raise these issues at every possible forum and his commitment to fighting for policy-level reforms clearly reflect his role as a true champion of MSMEs and their contribution to the national economy.

The Sri Lanka Ports Authority (SLPA) last week began the operations of Phase III of the Eastern Container Terminal (ECT), marking a key milestone in the Government’s efforts to strengthen the Port of Colombo as a regionally competitive maritime hub.

With the completion of Phase III, 1,090 metres of the terminal’s planned 1,300-metre quay length has now been completed, while 82% of the balance construction work is also finished. The commissioning of this phase enables the Eastern Container Terminal to handle three container vessels simultaneously.

Operations at the new phase were inaugurated with the arrival of a container vessel operated by the CMA CGM Group.

In 2025, the Eastern Container Terminal handled over 500,000 container movements. With the commissioning of the additional terminal capacity, the SLPA expects container handling at the ECT to exceed 1.5 million movements in 2026, further reinforcing the Port of Colombo’s position as a leading transhipment and re-export hub in South Asia.

Lea Hedges PLC has appointed Hisham Jamaldeen and Archie Warman to its Board as Non-Independent Executive Directors.

Jamaldeen brings over 20 years of experience in corporate finance, accounting and strategic business leadership across the real estate, leisure, hospitality, retail, energy and logistics sectors. He began his career in London’s financial sector and has been involved in real estate transactions exceeding $ 1.6 billion.

He is the founder and Executive Director of Steradian Capital Investments Ltd. and currently holds directorships in forty companies, including Managing Director of On’ally Holdings PLC and Chairman/Managing Director of Lanka Realty Developments Ltd. Jamaldeen has also served as an Independent Non-Executive Director of Hayleys PLC and has contributed to national institutions such as People’s Bank PLC, Sri Lanka Cricket Interim Committees and the Sri Lanka Atomic Energy Board. He is a Fellow of the Association of Chartered Certified Accountants (UK) and holds an Engineering and Business degree from the University of Warwick, UK.

Warman is a seasoned real estate and investment professional with over two decades of experience in corporate finance, property investment, development and asset management in both the UK and Sri Lanka. He is a Co-founding Partner of Steradian Capital Investments Ltd. and an Executive Director of Lanka Realty Investments PLC, with a strong track record in structuring capital market transactions, mergers and acquisitions and large-scale real estate developments. He has led and executed significant transactions on the Colombo Stock Exchange, including rights issues, private placements and mandatory offers and has been instrumental in the development of landmark projects such as HQ Colombo, Mulberry Residences and the W15 hospitality brand. Warman is a Member of the Royal Institution of Chartered Surveyors (MRICS) and holds a Master’s degree in Property Valuation and Law from Cass Business School, City University of London.

Barely two weeks before the start of the ICC T20 World Cup, the pitch at the R. Premadasa International Cricket Stadium (RPICS), which is one of the three venues hosting the World Cup matches, came for some harsh criticism from England Captain Harry Brook and star batsman Joe Root at the end of the second ODI played there on Saturday.

Although England managed to win the contest by five wickets to level the three-match series one-all, the slowness of the pitch and the lack of pace in it was a real struggle for the batsmen.

England did well to bowl Sri Lanka out for 219 in 49.3 overs, and had to depend on Root’s extraordinary skills as a world class batsman who has excelled on subcontinent pitches to get over the line. Root’s magnum opus knock of 75 off 90 balls saw England home comfortably with 22 balls to spare.

‘It’s nice to get a win away from home. On a tough surface, but we’re happy to get the victory. Probably the worst pitch I’ve ever played on and you had to go out there and adapt as quickly as possible and just try and get off strike and get the other batter on strike,’ said Brook at the post-match press conference.

Root, who took the Player of the Match award, said: ‘Nice to get the win on a very difficult surface. Just tried to take the ball as late as possible. I don’t think that’s a great wicket for ODI cricket if I’m being brutally honest, but we found a way today and we adapted and learnt from the mistakes we made in the first game with both bat and ball and got across the line.’

‘We knew it was going to be a case of trying to maximise the powerplay and then a couple of big partnerships. If a couple of guys bat for a period of time there, then it’s going to be difficult for Sri Lanka to wrest momentum back in their favour. That’s how we tried to approach it. And thankfully, we got the job done. Just used experience, really. I’ve played a lot of cricket in the subcontinent, I’ve played a lot of cricket here in Sri Lanka. Have an understanding of the different nature of the bounce and how the ball can turn. Tried to work out the delivery from the hand as much as possible. As the ball gets softer and a bit older, then it makes it a little bit easier to play. When it’s newer, you’ve got to be really precise with your footwork.’

Brook praised his bowlers for bowling Sri Lanka out inside the 50 overs after they had won the toss for the second time in the series and opted to bat first. ‘I thought the bowlers did an amazing job there to bowl that side out. Obviously, they’re used to these conditions, so to bowl them out was awesome work from them guys.’

England went in with a bowling attack loaded with spinners and it worked out well for them. ‘It was just rotating the spinners really. We lost Creeps (Jack Crawley) for selection last night with his knee, so we brought Jacksy (Will Jacks) in to replace him back in the middle order and he did a really good job with the ball as well,’ said Brook.

Commenting on Root’s innings, Brook said: ‘He’s an awesome player. His ability to get off strike and put the bad ball away when they slightly miss is awesome. He’s a phenomenal player to have in our side.’

Sri Lanka top order batsman Dhananjaya de Silva said that their batsmen could not finish the innings off and that’s why they fell about 25-30 runs short. ‘We didn’t get the amount of runs we required in the final overs. England executed their plans well to keep us down to this total.’

As regards the pitch, de Silva said: ‘The wicket was a bit slow when we batted but I think the ball came onto the bat a little quicker under lights.’

The third and final ODI will be played at the same venue tomorrow.

Sri Lanka’s banking sector is entering a more demanding phase of transition, as institutions built on trust, regulation and extensive physical networks confront rising digital expectations, tighter supervisory scrutiny and growing cyber risk. At the Institute of Bankers of Sri Lanka’s inaugural National Banking and Finance Conference themed ‘Digital Transformation and Financial Stability’ last week, chief executives from a cross-section of State-owned, private, Islamic and mid-tier banks offered a grounded assessment of how they are pursuing digital transformation while preserving financial stability.

The CEO Forum, the conference highlight, followed broader discussions on technology, talent and regulation, but shifted the focus decisively towards execution. Bank of Ceylon Acting General Manager/CEO Y.A. Jayathilaka, Amana Bank Managing Director/CEO Mohamed Azmeer, Seylan Bank Director/CEO Ramesh Jayasekara, Pan Asia Banking Corporation Director/CEO Naleen Edirisinghe and Union Bank of Colombo Executive Director/CEO Dilshan Rodrigo spoke less about aspiration and more about constraints: cost, culture, governance and the limits imposed by legacy systems.

Rather than portraying digitalisation as an endpoint, the discussion reflected a shared view that transformation is continuous, capital-intensive and inseparable from leadership and organisational discipline.

A journey, not an event

For Bank of Ceylon, digitalisation has unfolded as a long-running structural shift rather than a discrete technology upgrade. Jayathilaka framed the process as one that reshapes systems, procedures and customer experience over time.

‘Digital transformation is, by its name itself, a transformation journey. When it’s a journey, we can’t do it overnight,’ he said, pointing to the cumulative nature of change over the past decade.

At branch level, the shift is now visible in routine banking. Account opening has moved online, paper forms have been removed and digital signatures have become standard. Jayathilaka noted that adoption is no longer confined to major cities.

‘Use of debit cards, credit cards and automated transaction channels has expanded across the country, including rural areas,’ he said.

However, higher digital penetration has not reduced demand for physical banking. Despite digital transactions now accounting for close to 90% of activity, Bank of Ceylon continues to expand both its branch network and workforce.

‘We won’t be able to reduce it over a period. We have to respond to customer demand and customer requirements,’ Jayathilaka said.

The scale of parallel operations remains significant. ‘For every transaction done at a counter, around four are carried out through online channels,’ he said. Monthly online transaction volumes rose from around Rs. 250 billion to over Rs. 350 billion by December, even as cash usage and counter transactions also increased.

Maintaining this dual infrastructure requires substantial capital. ‘When we upgrade our switches, we are not talking in millions. We invest around Rs. 3-4 billion in a single server,’ Jayathilaka said, adding that total IT infrastructure investment last year reached Rs. 12-15 billion.

Leadership, culture and challenges

Across the banking sector, Amana Bank CEO Mohamed Azmeer located the core challenges of digital transformation less in technology than in leadership and organisational culture.

‘Very often, banks fail in digital transformation not because they lack technology,’ he said. ‘They fail because leadership does not change decision-making, risk assessment and governance.’

While regulatory constraints are significant, Azmeer argued they can be managed through early engagement and alignment. Leadership mindset, however, determines whether transformation delivers value or stalls.

He described Amana’s operating model as one that links the real economy with the financial system through trade, investment and partnership relationships, with technology acting as an enabler.

‘Technology plays a key role because we are able to connect all these relationships on a single platform,’ Azmeer said.

Capability building has been central to execution. Azmeer pointed to early investment in leadership development, including overseas training for senior staff. He cautioned against treating technology as an objective in itself.

‘AI is a technology, not an objective. Blockchain is a technology. We have to use them to reach our objectives,’ he said.

Governance has moved in parallel. Amana has deployed chatbots in compliance functions and is testing AI-based tools in audit processes to ensure controls keep pace with faster digital operations. ‘If these areas are well protected, the business can move at the speed it needs to,’ Azmeer said.

He also highlighted the role of education in building trust, citing early initiatives to explain Sharia banking through short digital content. ‘At that time, we had 25,000 customers. Today, we have over half a million.’

Inclusion, simplicity and the power of fewer clicks

Seylan Bank’s Ramesh Jayasekara framed digital transformation as an open-ended process, shaped as much by ecosystem coordination as by bank-led initiatives. ‘Even five years from now, we will still be talking about transformation,’ he said.

Digital inclusion, he argued, depends on collaboration across telcos, fintechs, Government platforms and the digital ID framework. Seylan’s own experience reflects this. Digital penetration has risen from about 15% to around 45% over the past few years, supported by the introduction of Sinhala and Tamil language interfaces.

‘A large share of customers transact primarily in local languages,’ Jayasekara said, arguing that language accessibility is a core driver of adoption rather than a peripheral feature.

Simplicity has been the guiding design principle. Referring to a cash-backed loan product, Jayasekara said: ‘If a customer can access their own money in five clicks, adoption improves.’

‘The fewer the steps, the easier the adoption,’ he added, drawing parallels with consumer technology platforms such as Uber and PickMe.

He also stressed the importance of embedding risk and compliance early in product design. ‘They need to be involved from day one,’ he said, linking this approach to cyber security and customer confidence.

Balancing innovation, regulation and efficiency

Pan Asia Banking Corporation CEO Naleen Edirisinghe of described digitalisation as a balance between customer experience, regulatory discipline and operational efficiency.

‘Technology is a tool, not a goal,’ he said, pointing to the Central Bank’s risk-resilient framework as a common constraint across banks.

Efficiency has been the most tangible outcome. Pan Asia’s digital on-boarding platform, Lime, reduced account-opening time from about 30 minutes to nine.

‘Earlier, we opened about three accounts a day. Now it is around 15 to 16,’ Edirisinghe said, highlighting the immediate productivity gains.

He also pointed to changing customer behaviour, including complaints logged digitally during early morning hours. ‘Customer behaviour is changing,’ he said. Internally, Pan Asia has deployed platforms that provide a consolidated, real-time view of customer relationships. ‘One screen gives a full overview of the customer relationship,’ Edirisinghe said.

Legacy systems and hard investment choices

For Union Bank CEO Rodrigo, legacy systems are the single largest constraint on seamless digital banking.

He outlined three strategic options: replacing core systems, upgrading existing platforms, or layering functionality through open APIs. Each carries material cost implications.

‘For a large bank, this could be a $ 5 million investment. For a smaller bank, even $ 1 million could represent a year’s profit,’ Rodrigo said.

Transformation, he argued, must be led by the business rather than technology teams. ‘In the past, technology drove projects. Now business has to take ownership,’ he said, identifying customer journey mapping as the starting point.

Execution must occur without disrupting operations. ‘Digital transformation is like changing tyres on a vehicle moving at speed,’ Rodrigo said. ‘The business cannot stop.’

Looking ahead, Rodrigo emphasised ecosystem development through vendors, open APIs and experimentation environments. ‘Banks do not need to build everything themselves,’ he said.

Navigating transformation

The discussion made clear that technology alone will not deliver outcomes without leadership, organisational change, regulatory alignment and sustained investment. While strategies differ by scale and business model, the constraints posed by legacy systems, cyber risk and evolving customer expectations remain shared, shaping how Sri Lanka’s banking sector navigates its next phase of transformation.