Category: Daily Financial Times

The inaugural National Banking and Finance Conference, held to mark the 60th anniversary of the Institute of Bankers of Sri Lanka (IBSL), opened with a clear message to the financial sector: growth, resilience and competitiveness will increasingly depend on how effectively banks internalise digital transformation while maintaining financial discipline in a constrained macroeconomic environment.

Opening proceedings, Institute of Bankers of Sri Lanka Chairman and Central Bank Deputy Governor Dr. Chandranath Amarasekara described the event as more than a commemorative milestone, positioning it instead as a reset for the sector’s strategic thinking.

‘Today is more than the start of a conference. It signals a new chapter in the intellectual, professional and strategic evolution of Sri Lanka’s financial ecosystem.’

The conference, centred on digital transformation and financial sustainability, was framed as a deliberate effort to align industry thinking with the realities of a post-crisis economy. Expectations of banks and financial institutions had risen sharply as Sri Lanka emerged from one of the most difficult periods in its economic history, Dr. Amarasekara observed.

‘In this shock-prone world, we are called upon not just to support recovery but to shape it, to drive innovation, accelerate digital transformation, strengthen confidence, and ensure that the path ahead is both sustainable and inclusive.’

At the same time, Dr. Amarasekara cautioned against allowing technological momentum to erode prudence. Financial sustainability, he stressed, continued to rest on disciplined balance-sheet management, robust risk frameworks and prudent lending practices, even as institutions adapted to rapid technological change.

‘In such a fast-moving ecosystem, relying on experience alone or even sound intuition is no longer enough. We must sharpen our strategy and strengthen foresight.’

IBSL, Dr. Amarasekara noted, was responding by deepening its focus on capacity-building, research and professional standards. Research, in this context, was no longer an academic exercise but an operational necessity, strengthening the ability of institutions to anticipate risks, adopt data-driven strategies and project the transparency that underpins investor confidence.

Ensuring that digitalisation delivered genuine economic value, rather than superficial efficiency gains, would be critical. When institutions were resilient, innovative and strategically aligned, Dr. Amarasekara argued, they were better positioned to support national progress and sustainable growth.

Delivering the Chief Guest address, Central Bank Governor Dr. Nandalal Weerasinghe traced the pace of change in financial services over the past decade and its implications for banking strategy.

‘Even a decade ago, customers had to travel miles, stand in lines and submit loads of paperwork just to open an account or obtain a loan. The idea of mobile banking, real-time analytics or AI-assisted financial services would have sounded like science fiction.’

The shift since then, Dr. Weerasinghe noted, had been structural rather than cosmetic. Customer expectations had reset permanently.

‘People now expect banking to be instant, personalised, secure and available anywhere, anytime. This requires us to think differently about products, processes and the very business model of financial institutions.’

Digital transformation, Dr. Weerasinghe stressed, could not be reduced to technology deployment alone.

‘Digital transformation is more than technology. It demands a shift in culture, mindset and competence. Leadership would be decisive.’

Investment in digital skills, he added, had to extend beyond IT teams to the entire organisation. Sustainability, meanwhile, had moved decisively into the financial mainstream.

‘Climate risks are financial risks that we have already experienced,’ Dr. Weerasinghe noted, pointing out that environmental factors were now influencing asset values, equity performance and long-term stability.

Environmental, social and governance considerations therefore needed to be integrated into core decision-making, alongside support for investments in renewable energy, climate-resilient infrastructure and inclusive development.

For Dr. Weerasinghe, digital capability and sustainability were deeply intertwined. Digital tools enabled more accurate climate-risk modelling, improved transparency in green financing and wider financial inclusion through mobile platforms and digital identities.

‘Digital transformation cannot be treated as another IT project. It is a financial strategy and a critical driver of long-term financial sustainability in a connected global economy.’

Complacency, he warned, carried the risk of institutional obsolescence. At the same time, digitalisation brought new vulnerabilities.

‘Digital transformation necessitates investment in a robust cyber-defence posture, which protects banks’ most valuable assets, namely their data and reputation.’

Financial sustainability, Dr. Weerasinghe added, could no longer be assessed purely through balance-sheet metrics, as ESG performance and digital capability increasingly shaped long-term institutional value.

In the keynote address, Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya placed digital transformation within the broader challenge of achieving growth under fiscal constraint.

‘As we emerge from an economic crisis, we aspire to achieve growth while remaining committed to financial sustainability and resilience.’

The central question, Dr. Wijayasuriya argued, was whether growth could be achieved without exhausting scarce capital.

‘The question is whether we can achieve a super return on investment. Can we achieve leapfrog growth while not spending our last rupee.’

Digital transformation, Dr. Wijayasuriya contended, offered that possibility, though it demanded difficult organisational and behavioural change. International experience, including India’s, demonstrated that aggressive digital adoption could lift growth beyond expected baselines without equivalent increases in capital investment.

As digital tools penetrated deeper into economic processes, productivity gains and scale effects created growth ‘bounces’ that would otherwise require far greater investment.

He explained that the Government’s digital economy blueprint was built around horizontal digital public infrastructure, including digital identity, national data exchange and advanced payment platforms, opened through APIs to enable innovation by banks, fintechs and developers.

‘A dollar invested in a digital platform can generate five, ten or even twenty times value through inclusion, network effects and innovation.’

Technology adoption, however, had become increasingly binary, particularly with artificial intelligence.

‘If you adopt and use it better than others, you progress. If not, your competitiveness depletes very rapidly.’

Dr. Wijayasuriya also warned that the same technologies were being exploited by the scam economy, making regulatory technology, fraud prevention, privacy protection and trust as important as innovation itself.

‘The super ROI is there to be captured, but it requires digital transformation pursued with discipline, foresight and a strong focus on resilience and trust.’

The conference framed digital transformation not as a discretionary upgrade cycle, but as a structural determinant of profitability, resilience and national competitiveness, as Sri Lanka’s banking and financial sector navigates a narrow path between recovery, growth and long-term sustainability.

Kohli was the hosts’ last remaining realistiWhen Daryl Mitchell stood under a skied Virat Kohli drive, he quite fittingly had New Zealand’s hopes of securing their first bilateral series win in India resting squarely in his hands.

c avenue to completing an improbable series-saving run chase.

But Mitchell stood confidently inside the long on boundary, and stood firm. He secured the catch, just like he has seemingly grabbed every other opportunity he’s been made to earn since bursting onto the international scene more recently than what logic would indicate.

It was Daryl Mitchell’s ninth ODI ton that had put the Black Caps in a winning position earlier that day, with the series in the balance at 1-1 going into the decider in Indore.

When the 34-year-old completed a quick single to achieve this latest milestone, he would also become the fourth-fastest male to nine ODI hundreds of all time, coming in just his 54th batting innings, sitting behind only Imam-ul-Haq (48), Hashim Amla (52), and Quinton de Kock (53).

Coming with New Zealand’s historic win was a similarly rare feat; overshadowing a Kohli century-making moment in India. Kohli was the home side’s main point of resistance, smashing 124 off 108 deliveries. His knock was bettered only by Mitchell’s himself, who belted 137 from 131 balls.

The Hamilton product is in the form of his life, scoring 352 runs across the three-game series. He was Player of the Match in game two as well, scoring an unbeaten 131 off 117 balls to help the Black Caps first level the series they would go on to win. And in a losing effort in game one, Mitchell was also the Kiwis’ top-scorer in that contest as well, hitting 84 off 71.

His series total (352 runs) is the most ever by a New Zealander in a three-match ODI series and the third-most of all time, behind only Pakistan’s Babar Azam (360 against the West Indies in 2016) and India’s Shubman Gill (360 against New Zealand in 2023).

Mitchell’s two consecutive scores of 130-plus not only puts him level with Martin Guptill for the most in New Zealand’s ODI history (four), but it also rounds out his meteoric rise to top spot in the ICC’s ODI Batting Rankings.

Commercial Bank of Ceylon PLC has divested its entire shareholding in Equity Investments Lanka Ltd., for Rs. 27.1 million.

The bank said it sold 4,110,938 ordinary shares, representing 22.92% of the issued share capital of Equity Investments Lanka Ltd.

The shares were sold to Comark Engineers Ltd., a subsidiary of Lanka Aluminium Industries PLC.

Sri Lanka’s apparel sector has entered a new phase of opportunity following sweeping reforms to the United Kingdom’s Developing Countries Trading Scheme (DCTS), which came into effect on 1 January 2026. The revised framework grants Sri Lankan garment exporters tariff-free access to the UK market under significantly more liberal rules of origin, fundamentally reshaping the country’s export competitiveness. Under the new rules, Sri Lankan manufacturers can now source up to 100% of their raw materials from anywhere in the world while retaining zero-tariff entry to the UK. This marks a major departure from the previous system, which required regional sourcing and multiple manufacturing processes to be carried out locally. For an industry that accounts for over 60% of Sri Lanka’s exports to the UK, valued at approximately USD 675 million, and supports nearly one million livelihoods, this reform represents both an immediate commercial boost and a long-term strategic opportunity.

British High Commissioner to Sri Lanka, Andrew Patrick, welcomed the reforms:

‘By simplifying rules of origin, we are supporting Sri Lanka’s economic growth and helping diversify exports. I invite exporters to explore these reforms and access the zero tariffs offered under the DCTS.’

A stronger competitive position in global markets

The relaxation of rules of origin removes long-standing supply-chain constraints that previously increased production costs and limited operational flexibility. Sri Lankan apparel firms can now source fabrics, yarn, and accessories from the most cost-effective global suppliers without risking tariff penalties. This will help reduce input costs, improve price competitiveness, shorten production lead times, and enable faster responses to fashion trends. At a time when global buyers are increasingly price-sensitive, Sri Lanka’s ability to deliver quality garments at competitive prices enhances its appeal as a sourcing destination. Major exporters such as MAS Holdings, Brandix, Hirdaramani, Teejay Lanka, and Hela Apparel Holdings are well positioned to benefit from these changes, given their scale, international client base, and compliance-driven operations.

Beyond cost: Moving up the value chain

While improved cost efficiency is important, the real long-term opportunity for Sri Lanka’s apparel sector lies in value addition. With greater sourcing freedom, manufacturers can focus on faster design-to-delivery cycles, the use of advanced and performance fabrics, expansion into high-value fashion segments, product innovation, and sustainability-led differentiation. Trade access creates room for growth, but long-term resilience will depend on productivity, skills, and innovation. Countries that rely solely on low-cost manufacturing often face margin pressure, whereas Sri Lanka has the opportunity to position itself as a premium, ethical, and sustainable apparel producer.

Sustainability as a strategic advantage

Sri Lanka has already earned a global reputation for ethical labour standards and compliance. The new DCTS framework provides a timely opportunity to strengthen this advantage through sustainability-led growth. Rather than becoming another fast-fashion hub, the industry should focus on low-environmental-impact fabrics, water-efficient dyeing processes, waste-reduction and recycling systems, renewable energy adoption, and transparent, traceable supply chains. If Sri Lanka positions itself as a sustainable, high-quality apparel producer, the benefits will extend far beyond temporary tariff advantages.

How MSMEs can benefit from DCTS reforms

The DCTS reforms are not just for large corporations. Micro, Small, and Medium Enterprises (MSMEs) also stand to gain significantly from the new framework. Previously, many smaller firms struggled to meet complex rules of origin and compliance requirements. The revised system simplifies market entry by allowing global sourcing of raw materials, enabling MSMEs to reduce production costs, compete in price-sensitive UK segments, enter the export market more easily, and focus on niche products such as ethical fashion, uniforms, and boutique apparel. Increased export demand will also strengthen local supply chains in areas such as fabric processing, trimming and accessories, packaging, and logistics and compliance services. Since many MSMEs operate in semi-urban and rural areas, export growth can further drive regional development, job creation, and female employment.

Opportunities for new entrants and startups

The revised UK trade rules have significantly lowered entry barriers for newcomers to Sri Lanka’s apparel industry. Instead of competing purely on price, new entrants can focus on high-potential niches such as sustainable fashion, ethical and fair-trade garments, designer and boutique collections, sportswear and activewear, workwear and uniforms, as well as cultural and modest fashion. The ability to source materials globally allows startups to test small production runs without heavy capital investment. Newcomers can also adopt asset-light business models by partnering with existing manufacturers for production while concentrating on design, branding, and marketing. In addition, digital platforms, virtual trade shows, and direct buyer outreach provide low-cost access to UK markets, provided compliance and quality standards are met.

Learning from Vietnam and Bangladesh

Vietnam and Bangladesh have demonstrated how strategic policy alignment, infrastructure investment, and market diversification can drive sustained export growth. Sri Lanka once led South Asia’s apparel sector but gradually lost momentum due to policy uncertainty, higher operating costs, and limited market diversification. The DCTS reforms now offer a valuable second chance. However, success will require productivity improvements, greater logistics efficiency, increased investment in technology, and proactive market expansion-especially into India. With its rapidly growing middle class, India presents a major opportunity for Sri Lankan apparel exporters to diversify beyond traditional Western markets and strengthen long-term export resilience.

The skilled workforce:

Sri Lanka’s competitive edge

Beyond cost factors, Sri Lanka’s greatest strength lies in its skilled workforce and experienced management. The apparel industry is known for its high workmanship standards, strong compliance systems, low defect rates, ethical labour practices, and efficient production management. These strengths enable manufacturers to deliver consistent quality, reduce wastage, and build long-term partnerships with global brands. The result is a win-win ecosystem that delivers lower inefficiencies, higher product value, and mutually beneficial buyer relationships.

How policymakers can maximise DCTS opportunity

Trade access alone is not enough. To extract the maximum national benefit, Sri Lankan policymakers must align industrial policy, export strategy, sustainability goals, and workforce development with the DCTS reforms.

Key priorities include:

1.A National apparel export growth strategy

Focused on export growth, value-added products, sustainability leadership, MSME participation, and market diversification.

2. MSME and Startup support

Through low-interest export financing, credit guarantees, startup grants, shared manufacturing facilities, and subsidised compliance certifications.

3. Green manufacturing incentives

Tax incentives for renewable energy, funding for water-treatment systems, circular economy support, and green certification programmes.

4. Trade promotion and market access

UK trade missions, international apparel fairs, digital buyer-matching platforms, and global branding of Sri Lanka’s ethical manufacturing image.

5. Simplified export procedures

Faster customs clearance, digital documentation, one-stop export facilitation centres, and reduced regulatory duplication.

6. Skills, technology and innovation

Investment in advanced garment technology training, design hubs, textile RandD, and university-industry collaboration.

7. Market diversification

Stronger trade links with India and regional markets to reduce over-dependence on Western economies.

8. National branding

A unified ‘Sri Lanka Apparel’ brand highlighting ethics, sustainability, quality, reliability, and workforce skills.

Safeguarding livelihoods and national growth

The apparel sector is not just an export engine for Sri Lanka – it is also a vital social stabiliser. Nearly one million Sri Lankans depend on the industry directly or indirectly for their livelihoods. Strengthening the sector’s global competitiveness helps safeguard employment, improve household incomes, support regional development, and boost foreign exchange earnings. At a time when Sri Lanka is rebuilding economic confidence and economic resilience, this reform could not have come at a better moment.

Leveraging global trade shifts to strengthen Sri Lanka-UK apparel ties

The latest US tariff measures on imports from India, China, and other affected countries are prompting global apparel manufacturers to rethink their sourcing and production strategies. When combined with the United Kingdom’s liberalised Developing Countries Trading Scheme (DCTS), which offers Sri Lanka tariff-free access under flexible rules of origin, this creates a powerful dual advantage for the country. Sri Lanka can position itself as a tariff-efficient, compliant, and reliable manufacturing base for UK-focused apparel exports, while also attracting foreign investors seeking to diversify away from tariff-affected markets. With strong Sri Lanka-UK garment industry ties, a skilled workforce, and a reputation for ethical and sustainable manufacturing, the country is well placed to convert global trade disruptions into long-term export growth and foreign direct investment in the apparel sector.

Timely and progressive reform

The UK’s DCTS reforms represent one of the most progressive trade moves for Sri Lanka in recent years. They strengthen the apparel sector, enhance global competitiveness, and reinforce the country’s position as a trusted manufacturing partner. However, opportunity alone does not guarantee success. Sri Lanka must use this window to modernise its industry, innovate continuously, adopt sustainable practices, diversify its markets, and compete smarter on the global stage. If executed well, this reform could mark the beginning of a new era for Sri Lanka’s garment industry – built on quality, sustainability, and long-term value creation.

SRI Lanka’s modern higher education landscape rests on a deep social commitment established nearly a century ago. The transformative reforms led by Dr. C. W. W. Kannangara in the 1940s made free education a cornerstone of national development. As scholars such as Jayaweera (1969), Little (2010), and Fernando (2017) have shown, this investment produced one of the most literate populations in the developing world and laid the foundation for university education to emerge as a public good rather than a privilege.

When the University of Ceylon was established, and later when the Universities Act of 1978 formalised the system, academic freedom and institutional autonomy were embraced as indispensable principles. For decades, autonomy protected universities from political turbulence, ensured that academic affairs remained internally regulated, and upheld quality standards. Yet by the late 20th century, research by Seneviratne (1999), Wickramasinghe (2014), and others had already begun documenting the gradual erosion of that independence due to politicised appointments, expanding bureaucratic controls, and shifting political priorities.

Globally, the trend has moved in the opposite direction. Leading systems in the UK, Australia, Canada, and across Europe preserve a strong boundary between Government authority and internal academic governance. While national policy and funding remain State responsibilities, decisions about deans, heads of departments, and the organisation of academic units are overwhelmingly internal and merit based. Sri Lanka’s proposed amendment, however, signals a sharp deviation from these norms. Against this historical backdrop, the newly gazetted Universities (Amendment) Bill has reignited anxieties about the future of autonomy in the Sri Lankan university system.

Most diversified blue chip, Hayleys PLC yesterday effected two moves – a historic Rights Issue and a high dividend, which analysts described as ‘win-win’ for both shareholders and the company.

The Rights Issue, first since Co-Chairman and biggest shareholder Dhammika Perera acquired Hayleys in 2009, is to raise Rs. 9 billion to strengthen its balance sheet and fund new investments.

Under the proposed move, shareholders will be offered three new ordinary voting shares for every 50 existing shares held (45 million shares in total) at Rs. 200 each.

The company said the proceeds of the Rights Issue will be utilised to fund new investments and for the partial settlement of debt.

Separately, Hayleys PLC also announced a dividend of Rs. 6 per share for FY26, with payment on 12 February. The payout is Rs. 4.5 billion, same as in FY25.

Both announcements were made after the market was closed. Earlier, Hayleys shares closed yesterday at Rs. 248.50, gaining by Rs. 30.50. The Group reported net assets of Rs. 131.67 per share as of end-September 2025.

As at 31 December 2025, Hayleys PLC stated capital stood at Rs. 1.575 billion, represented by 750 million ordinary voting shares.

Top shareholders of Hayleys PLC as of end-September 2025 were Dhammika Perera (51.01%), D.S. Jayasundera Trust (11.6%), and Phantom Investments (5.14%).

Analysts said the reducing of debt will further boost Hayleys financial stature, whilst shareholder funds will also help realise some of the new investments, including the ambitious yet high-potential supermarket chain.

The proposed Rights Issue is subject to obtaining approval in principle from the Colombo Stock Exchange for the issue and listing of the new shares, as well as shareholder approval by way of an Ordinary Resolution at an Extraordinary General Meeting.

The Cabinet of Ministers on Monday approved the recommencement of construction work on Stage III of the Baseline Road Extension Project, which had been temporarily suspended amid the economic crisis.

Approval for the construction of the six-lane, 0.86-kilometre road stretch from Kirulapone Junction to Dutugemunu Mawatha on the Colombo-Horana Road was originally granted by the Cabinet on 11 November 2009, as part of Stage III of the project.

Construction activities were halted in 2022 following a recommendation by the Re-Strategisation and Acceleration Officer Committee of Large-Scale Development Projects, due to the severe economic challenges faced by the country at the time.

‘The project has since been identified as a priority infrastructure development under the National Road Master Plan. According to officials, approximately 90% of the land acquisition required for the road construction has already been completed,’ Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at the weekly post-Cabinet meeting media briefing yesterday.

The proposal to this effect was presented by Transport, Highways, and Urban Development Minister Bimal Rathnayake.

Senior sports journalist Sa’adi Thawfeeq was bestowed with the Lifetime Achievement Award on Tuesday at the 26th edition of the Journalism Awards for Excellence 2024 organised by The Editors’ Guild of Sri Lanka (TEGOSL).

Sa’adi is a prominent Sri Lankan sports journalist and veteran cricket writer, with a career spanning over four decades. He completes 50 years in sports journalism in March 2026. He served Lake House in the Daily News as a sports writer and then as Sports Editor from 1976-2006 and again from 2015-2020 as Group Sports Editor, and The Nation (as Deputy Editor – Sports) 2006-2015. Presently, he serves as a sports writer for the Daily FT.

He won the Sports Journalism of the Year award twice, conducted by TEGOSL in 2006 and 2007.

His late father, M.M. Thawfeeq, was also a longstanding journalist at Lake House, serving over 40 years as Sports Editor of the Ceylon Observer and as Deputy Editor of the Daily News.

The official ticket launch of the 96th Battle of the Maroons Legend’s Enclosure took place recently at the 80 Club of Colombo.

The event was graced by legendary Old Anandian cricketers, war heroes, and distinguished professionals, making the evening truly memorable.

Some leading former cricketers, such as Thilan Wijesinghe, Brendan Kuruppu, Charith Senanayake, Deepal Dhamasekera, and Manjula Thenuwara, participated in this event.

The first few official tickets were ceremonially presented by Legend’s Enclosure Organising Committee President Dewaka de Silva to Major General Chagie Gallage, Thilan Wijesinghe, Charith Senanayake, Deepal Dhamasekera, and Manjula Thenuwara. Legend’s Enclosure will be limited to 400 spectators only.

The Big Match between Ananda and Nalanda will take place on 27, 28 February and 1 March, while the one day encounter will be a day-night encounter. Both will take place at the SSC Ground.

Siddhalepa Ayurveda, a key pillar of the Hettigoda Group of Companies, has opened its newest outlet at the Departure Terminal of the Bandaranaike International Airport (BIA), Katunayake.

This expansion marks a significant milestone for the Group as it continues to take the heritage of Sri Lankan Ayurveda to the world.

Travellers can now experience world-renowned Ayurvedic care and holistic well-being as a refreshing prelude to their journey. The new outlet offers a curated selection of authentic Siddhalepa products, allowing passengers to carry the wisdom of Sri Lankan Ayurveda to global destinations.

Hettigoda Group of Companies Chairman Asoka Hettigoda said: ‘Our mission at the Hettigoda Group has always been to preserve our 200-year-old Ayurvedic heritage while evolving to meet the needs of the modern traveller. The launch of this airport outlet ensures that the essence of Sri Lankan well-being is the final experience a visitor has before departing our shores.’

This strategic opening joins a prestigious network of locations across the island, including the Siddhalepa Ayurveda Health Resort in Wadduwa, the Siddhalepa Ayurveda Hospital in Mount Lavinia, the Siddhalepa Ayurveda clinics at Horton Place in Colombo 07, Pelawatte, Negombo and Mirissa, the Siddhalepa Ayurveda Outlets at One Galle Face, Hiriketiya, Kandy, and the Ayurveda Spa at Shangri-La’s Hambantota Resort.

Founded on a family legacy of over two centuries, the Hettigoda Group is a pioneer in the Ayurveda industry. From its flagship Siddhalepa balm to a range of over 400 ISO-certified products and a network of hospitals and resorts, the Group remains dedicated to promoting authentic Hela Ayurveda and holistic well-being both locally and internationally.