Category: Daily Financial Times

Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said its efforts to build a more resilient and stable financial sector will continue under the Master Plan for the consolidation of banks and finance companies, with a strong focus on long-term sustainability and systemic stability.

Delivering the annual policy address, he said the CBSL has commenced enhanced monitoring of finance companies based on scores achieved under the revised Phase II assessment framework. ‘These measures are aimed at improving financial stability, operational efficiency, and risk management standards across the non-bank financial sector,’ he added.

Dr. Weerasinghe noted that consolidation will enable banking and financial institutions to achieve the scale and balance sheet strength required to support large-scale and complex investments, which are critical to boosting investment activity and economic growth in the country. ‘Consolidation is also expected to facilitate greater investment in technology, promote financial inclusion, and foster healthy and sustainable competition within the financial system,’ he said.

Reflecting on the 2022 economic crisis, the Governor pointed out that the turmoil highlighted the urgent need for a robust and effective financial sector resolution framework. ‘In response, significant progress was made during 2025 to strengthen Sri Lanka’s resolution framework, with particular emphasis on enhancing institutional preparedness to manage distressed financial institutions,’ he outlined.

He said these initiatives are expected to be completed in 2026, in line with international best practices. ‘Once implemented, the strengthened resolution framework is expected to reinforce financial system stability and ensure the orderly and timely resolution of troubled banks and finance companies, thereby safeguarding depositor confidence and overall financial sector resilience,’ Dr. Weerasinghe said.

Last Saturday, marking an unprecedented event in the contemporary history of international relations, the former President of Venezuela cum unpopular dictator Nicolás Maduro Moros and his wife Cilia Flores were captured by US forces via Operation Absolute Resolve on the orders of the US Commander-in-chief Donald Trump. Trump had accused the Venezuelan leader of running a so-called narco terrorist organisation. In 2020, during the first term of Trump’s presidency, the US Department of Justice filed a major criminal indictment charging Maduro and 14 current and former Venezuelan officials with a range of serious crimes tied to drug trafficking and corruption.

Upon assuming the Presidency for the second time, Trump has been quite vocal about Maduro’s alleged role in leading and facilitating cocaine trafficking aimed at the US. The alleged narco-terrorism conspiracy by Maduro and his associates revolve around using drug trafficking to fund or support terrorist activities with the intention of harming US society. In 2024, Maduro won the Presidential election for a third term. However, many independent observers provided strong evidence to claim the ousted dictator lost the election by a wide margin. Subsequent to the widely disputed election, many powerful Western democracies began to question the legitimacy of Maduro’s rule in the South American state.

Critics have pointed out the controversial action by Washington was aimed at controlling oil and other resources in the Latin American nation. Venezuela is the country which has the largest proven oil reserves in the world. Hours after the capture of Maduro, Trump had stated that America would be taking a tremendous amount of wealth out of the ground in Venezuela and US oil companies would spend billions of dollars to fix the badly broken oil infrastructure in the oil-rich state.

Nevertheless, experts in international law have stressed the action by the Trump administration was in contravention of the international law, emphasising the US is likely to have violated the terms of the article 2(4) of the UN charter, which was signed in October 1945. The rules specify that states must refrain from using military force against other countries and must respect their sovereignty. Observers have underscored that the attack could have only been considered lawful if the US had a resolution from the UN Security Council or was acting in self-defence.

Despite sceptics condemning the questionable US action, the ouster of Maduro has been universally celebrated by the Venezuelan immigrants across the world. During the period of the evicted despot, the resource-rich state went through an era of decline and currently an estimated 80% of residents in the turbulent nation live in poverty. Around 8 million people had fled Venezuela under the disastrous rule of the exiled tyrant. Many Venezuelans who fled their homeland under the Maduro regime and his predecessor Hugo Chavez are hopeful the significant development in their motherland marks an end to more than 25 years of political persecution and economic ruin that destroyed their beloved country.

Although the ruling NPP politicians were passionate admirers of Chavez and Maduro (especially during the days of the JVP dispensation), the response of the Government to the unprecedented act of the White House has been quite timid to say the least. The Statement issued by the Foreign Affairs Ministry did not even refer to the USA. The behaviour of the Government is diametrically opposite to the hyper-sensitive anti-US sentiments the NPP/JVP used to express before coming into power.

Commentators in international affairs have opined that the unilateral measure by the Trump administration could set a dangerous precedent for the global world order as it could inspire other powerful states to take similar steps that would threaten the sovereignty of small neighbouring states in the pursuit of advancing geopolitical interests. Such a scenario would undoubtedly create chaos and turmoil while destabilising the accepted convention of multilateralism in international affairs.

Salesforce, this week announced the upcoming launch of the Salesforce Startup Program in Sri Lanka to foster growth and innovation for the country’s vibrant startup ecosystem.

The program, scheduled to go live by the end of January 2026, will provide Sri Lankan startups access to the vast Salesforce ecosystem. This includes AI-powered products, mentorship programs, joint go-to-market opportunities, and a community designed to help them build, grow, and scale.

This launch reflects Salesforce’s recognition of Sri Lanka’s rapidly evolving startup landscape and its growing potential for high-growth, innovation-led businesses. Emerging as the second-strongest startup ecosystem in South Asia after India, Sri Lanka is witnessing steady momentum in founder-led innovation, driven largely by software and data startups that now account for nearly 60% of the country’s startup base. As global interest in Sri Lankan innovation continues to rise, the Salesforce Startup Program aims to help founders translate early momentum into sustainable scale by connecting them to global platforms and markets.

Since its launch in India in December 2021, the Salesforce Startup Program has demonstrated measurable impact across markets. The program today supports a community of over 435 startups across India and Singapore, including more than 230 AI-first startups, with success stories spanning companies such as CloudFiles, Xoxoday, Yellow.ai, Locobuzz and Trupeer.ai.

Salesforce – South Asia President and CEO Arundhati Bhattacharya said: ‘Sri Lanka has built a strong foundation of technical talent and entrepreneurial ambition that is increasingly visible across South Asia and globally. Through the Salesforce Startup Program, we are committed to playing a catalytic role in Sri Lanka’s innovation journey, helping startups move beyond early success to global relevance, and building companies that can compete with confidence and create long-term economic impact.’

Sri Lanka also continues to be an important growth market for Salesforce, with a growing base of customers driving digital transformation across industries, including leading enterprises such as John Keells Holdings and Cinnamon Hotels.

Alongside customer momentum, Salesforce is investing in the country’s long-term digital talent pipeline through its Trailhead ecosystem. In collaboration with local workforce development partners, these initiatives aim to skill nearly 1,000 learners over the coming year through structured training, mentorship, and locally led cohorts.

Salesforce Senior Director Sridhar Hariharasubramanian told the media that the introduction of Startup Program in Sri Lanka was inspired by its success in terms of impact in India and Singapore. He also said the timing was perfect given Sri Lanka’s own ambitions in spearheading digital and entrepreneurial economy.

First Sri Lankan Salesforce Most Valuable Professional (MVP) and Hall of Fame Chamil Madusanka shared the strides made by the Salesforce community in Sri Lanka.

He first brought together other professionals in a LinkedIn group, which was soon recognised by Salesforce as Sri Lanka’s first official developer group. Today, six official groups exist across two cities (Colombo and Jaffna), serving developers, women in tech, and admins. All inspired by Chamil’s efforts to grow the community. He is the Head of Salesforce Practice at Australian-based IT firm iTelaSoft.

The first MVP title was awarded to Chamil in 2019, recognising his incredible contributions to the community. By this time, Chamil had published two books, ran a popular support blog, and was providing career opportunities and mentorship to newbies. He went on to be awarded MVP again the following four years, becoming a Hall of Famer in 2024.

Salesforce helps organisations of any size reimagine their business with AI. Agentforce – the digital labour solution for enterprises – seamlessly integrates with Customer 360 applications, Data Cloud, and Einstein AI to create a limitless workforce, bringing humans and agents together to deliver customer success on a single, trusted platform.

Lanka Securities Ltd., in a statement yesterday clarified reports relating to Wednesday’s trading disruption at the Colombo Stock Exchange (CSE).

‘Lanka Securities did not place any pre-open sell order of Wealth Trust Securities PLC shares at a price of Rs. 25,000 per share, nor was the company responsible for triggering or contributing to the incident, as suggested in certain media reports,’ the statement said.

Lanka Securities is a licenced market intermediary operating under the regulatory framework of the Securities and Exchange Commission of Sri Lanka (SEC) and in accordance with the rules and surveillance mechanisms of the CSE.

‘The matter is currently under review by the relevant regulatory authorities, and Lanka Securities is cooperating fully with the process,’ the statement added.

Lanka Securities said it remains firmly committed to conducting its operations with the highest standards of professionalism, integrity, and regulatory compliance. ‘The company places paramount importance on responsible market conduct, investor protection, and the maintenance of confidence in the capital market, and will continue to uphold the values, disciplines, and best practices expected of participants in Sri Lanka’s regulated securities industry,’ the statement added.

Sri Lankan garment manufacturers have now gained unprecedented access to UK markets under liberalised trade rules.

The changes allow manufacturers to source up to 100% of inputs for garments from any country worldwide whilst maintaining tariff-free access to the UK market. Fewer processing requirements now apply, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka.

The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka. This enables Sri Lankan manufacturers to source materials from regional partners whilst maintaining preferential tariff benefits.

British High Commissioner Andrew Patrick said: ‘The reforms that are now in force demonstrate the UK’s commitment to creating shared prosperity through trade partnerships. By simplifying rules of origin, we are supporting Sri Lanka’s economic growth by improving market access to the UK and helping to further diversify exports. We recognise the Sri Lankan Government’s ambition for export growth and continue to advocate for improved utilisation of the scheme. Therefore, I invite exporters to explore how they can benefit from these reforms and access the zero tariffs that the Developing Countries Trading Scheme (DCTS) offers.’

Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said: ‘The reforms to the UK’s DCTS remove previous restrictions requiring materials to be sourced regionally. Sri Lankan manufacturers can now compete equally by accessing global supply chains. The garment sector accounts for over 60% of Sri Lanka’s exports to the UK and supports 1 million livelihoods across the country. It is a significant boost for our export potential to an important market, and we are excited to work with buyers and manufacturers in creating significant growth from this opportunity.’

Council for Business with Britain (CBB) President Mark Surgenor said: ‘We are excited for the potential that the reforms will bring in enhancing the UK-Sri Lanka trade relationship. The most significant boost is to the garment sector. But with over 90% of products eligible for zero tariffs under the UK’s DCTS, we hope exports from other sectors will also seize the benefits arising from the creation of a larger number of regional countries from whom they can now source inputs. We are keen to see greater utilisation of the DCTS. This will form part of the CBB’s ongoing information sessions aimed at supporting Sri Lankan businesses in growing their trade with the UK.’

The changes respond to requests from many businesses and countries, including the Sri Lankan Government and the JAAF. The UK is Sri Lanka’s second largest garment export market at approximately $ 675 million in value, with exports expected to increase significantly under the new arrangements.

Listed John Keells Holdings (JKH) Group hotel companies Trans Asia Hotels PLC and Asian Hotels and Properties PLC which operate Cinnamon Grand and Cinnamon Lakeside have appointed Hishan Singhawansa to their respective Boards as a Non-Independent Non-Executive Director.

Singhawansa is CEO of Cinnamon Hotels and Resorts, leading the brand in ‘bringing the best of Sri Lanka to the world with style and elegance’ across its hotel operations. Cinnamon Hotels and Resorts is part of the Leisure Industry Group of John Keells Holdings PLC (JKH), Sri Lanka’s largest listed conglomerate, which operates over 70 companies across seven diverse industry sectors. In addition to this role, Singhawansa serves as an Executive Vice President at John Keells Group and as a Board Member of John Keells Hotels PLC.

He holds a BSc in Engineering (Hons) from the University of Moratuwa, Sri Lanka, and an MBA from the University of Wales. Singhawansa began his career at John Keells in 2008 as a Management Trainee in the Retail Industry Group, where he went on to head Category Management and Supply Chain before transitioning to the Group’s Leisure sector in 2017. With over 17 years of experience in business and operational efficiencies, he is focused on bringing people and capital together to advance the company’s growth objectives. Under his leadership, Cinnamon Hotels and Resorts is charting a journey defined by authentic hospitality, curated guest experiences, and empowered community development.

He currently leads the brand at a pivotal moment of strategic growth and regional expansion. A key milestone in this trajectory is Cinnamon Life, the Group’s landmark $ 1.2 billion integrated resort development, Sri Lanka’s largest private-sector investment which is set to position Colombo as a premier MICE and leisure destination in South Asia. In addition to his executive responsibilities, Singhawansa also serves on the Board of Directors of the Sri Lanka Convention Bureau and is a Committee Member of The Hotels Association of Sri Lanka (THASL).

Central Bank Governor Dr. Nandalal Weerasinghe yesterday said Sri Lanka is well positioned to achieve a favourable outcome at its upcoming Mutual Evaluation on anti-money laundering, countering the financing of terrorism and countering proliferation financing (AML/CFT/CPF), but cautioned that any adverse result would carry serious economic and reputational consequences.

‘Sri Lanka’s third Mutual Evaluation on its AML/CFT/CPF framework, coordinated by the Asia Pacific Group on Money Laundering (APG), will be a major milestone in 2026,’ he said delivering the annual policy address at the Central Bank.

He said the country enters the evaluation process from a position of strength, following significant reforms and institutional strengthening carried out in recent years. ‘The successful outcome of the Mutual Evaluation will depend on demonstrating a higher level of technical compliance with the 40 Recommendations of the Financial Action Task Force (FATF) and effectiveness against 11 Immediate Outcomes,’ he added.

The Governor explained that the Mutual Evaluation is a coordinated effort, involving both public and private sectors, including key ministries such as the Finance, Defence, Foreign Affairs and Justice and other key agencies such as the Attorney General’s Department, Sri Lanka Police, Sri Lanka

Customs, etc.

‘The highest political will and commitment, effective inter-agency coordination and close collaboration of relevant stakeholders will be vital in successfully facing the Mutual Evaluation,’ he stressed.

He noted that the Financial Intelligence Unit (FIU) will mainly focus on coordinating the mutual evaluation by leading national preparations, monitoring stakeholder action plans, and facilitating submissions and engagements with assessors.

However, he said if Sri Lanka’s AML/CFT/CPF regime is found to have strategic deficiencies, then Sri Lanka would be placed in the FATF’s International Co-operation Review Group (ICRG) list of jurisdictions under increased monitoring, known as the ‘Grey list’.

‘Grey listing would result in increased scrutiny of cross-border financial transactions, higher compliance costs, delays in international payments, and reduced access to correspondent banking relationships,’ the Governor warned, adding that it could also adversely affect foreign direct investment (FDI), capital inflows, export-oriented sectors, remittance flows, and overall economic growth, while increasing borrowing costs for both the public and private sectors.

Dr. Weerasinghe said reinforcing the national urgency to elevate the Mutual Evaluation preparation as a top-tier priority and strengthening stakeholder commitment and accountability would be critical to securing a successful Mutual Evaluation outcome.

In 2025, the FIU further reinforced the national AML/CFT/CPF framework through enhanced collaboration with key stakeholders. He said major achievements during last year included stronger mechanisms to monitor stakeholder action plans, progress in amending core AML/CFT/CPF legislation, expanded analysis and dissemination of Suspicious Transaction Reports, and targeted capacity-building programs aimed at improving institutional effectiveness and national readiness.

CH17 Loyalty has announced the launch of a comprehensive Human Resource Management (HRM) suite with a fully embedded rewards and loyalty module-a first-of-its-kind Software-as-a-Service (SaaS) solution developed for the modern enterprise.

Unlike conventional HR systems that focus primarily on administration, CH17’s newly introduced platform brings together HR operations, employee engagement, appreciation, recognition, attendance, and rewards within a single, seamlessly connected digital environment. The solution has been purpose-built for closed and targeted employee groups, enabling organisations to engage specific cohorts using defined demographic and firmographic parametres.

Industry observers note that while many HR platforms offer transactional efficiency, very few address the growing challenge of employee retention and continuous engagement. CH17’s platform directly responds to this gap by integrating real-world rewards, lifestyle benefits, and structured recognition mechanisms into daily HR workflows-transforming HR from a support function into a strategic engagement engine.

CH17 Founder and CEO Jumar Preena said: ‘Retention today is driven by how valued an employee feels, not merely by policy or payroll. We have taken our decade-long expertise in rewards and loyalty and embedded it where engagement truly begins-within the organisation itself. This platform allows employers to recognise, reward, and motivate their people in a measurable and sustainable manner.’

The platform offers: A unified HRM and engagement framework; Data-driven dashboards to track participation, recognition frequency, and impact; Configurable rewards aligned to performance, milestones, and tenure and Seamless scalability for SMEs, large enterprises, and multi-location organisations.

By leveraging CH17’s proven rewards infrastructure and merchant ecosystem, the solution enables organisations to offer meaningful, lifestyle-oriented benefits rather than symbolic incentives-an approach increasingly favoured by today’s workforce.

The launch further reinforces CH17’s position as a pioneer in loyalty-driven technology platforms, extending its impact beyond consumer rewards into the corporate and enterprise HR domain.

The CH17 HRM and Rewards SaaS platform is now available for enterprise onboarding and pilot deployments across Sri Lanka.

Sri Lanka Cricket (SLC) yesterday announced the appointment of former Indian batting coach Vikram Rathour as the batting coach of the Sri Lanka national team.

Rathour has been appointed on a consultancy basis, with a primary focus on the team’s preparation for the ICC Men’s T20I World Cup 2026.

A former India international who represented the country in Tests and One-Day Internationals, Rathour will assume duties on 18 January and will remain with the team until 10 March. He previously served as the batting coach of the Indian men’s team across all formats from September 2019 to July 2024.

Vikram’s coaching qualifications are, BCCI Level 3, Cricket Australia Level 3, and England and Wales Cricket Board Level 1. He is currently working with the Rajasthan Royals in the Indian Premier League, serving as the lead assistant coach.

Sri Lanka is preparing for severe weather conditions as a deep depression over the Bay of Bengal is expected to cross the island tonight, raising the risk of heavy rainfall and landslides, according to the National Building Research Organisation (NBRO).

The Department of Meteorology has advised that the system, currently located southeast of Sri Lanka, is likely to move westward across the south-western Bay of Bengal before turning northwest and crossing the island between Hambantota and Kalmunai between 5.30 p.m. and 11.30 p.m. on 9 January.

Intense rainfall associated with the system could increase landslide risk, particularly along the eastern slopes of the Central Highlands. As a precaution, landslide alerts have been issued for several Divisional Secretariat Divisions, with residents in high-risk areas advised to relocate to safer locations before the afternoon of January 9, especially in areas showing signs of soil movement, steep slopes, valleys and man-made embankments.

In the Kandy District, alerts have been issued for Minipe, Medadumbara, Panwila, Doluwa, Delthota and Ududumbara. Areas under warning in the Badulla District include Kandaketiya, Passara, Badulla, Lunugala, Haputale, Ella, Bandarawela, Hali Ela, Welimada, Meegahakivula and Uva Paranagama.

In the Matale District, Wilgamuwa, Ambanganga Korale, Ratthota, Naula, Ukuwela and Laggala Pallegama have been placed on alert, while in the Nuwara Eliya District warnings cover Walapane, Nildandahinna, Mathurata, Hanguranketha and Nuwara Eliya.

The NBRO said residents should remain in safe locations if landslides occur until inspections are completed and further instructions are issued. It said updates would be provided as weather conditions evolve.

Meanwhile, the Tri Forces have been placed on standby to support emergency response and recovery operations related to floods, landslides and adverse weather. The public has been advised to remain vigilant, limit travel in high-risk areas and seek assistance through emergency hotlines, including 117, if required.