Category: Daily Financial Times

The Cabinet of Ministers on Monday approved a targeted relief package to support farmers whose export-oriented crops were destroyed by recent extreme and erratic weather conditions, with a focus on restoring long-term agricultural productivity and safeguarding export earnings.

The decision follows the issuance of Budget Circulars No. 08/2025 and 08/2025 (i), which set out the instructions for granting relief to farmers affected by climate-related calamities, particularly those cultivating short-term crops.

In view of the wider economic importance of export agriculture, the Government has also moved to address the urgent need to replant long-term export crops damaged by the disaster.

Under the approved scheme, cultivators engaged in pepper, coffee and cardamom cultivation will receive a replanting allowance of up to Rs. 425,000 per hectare.

In addition, the Department of Export Agriculture will provide seedlings free of charge to replace destroyed plantations and facilitate replanting.

‘The relief measures aim to accelerate recovery in the export agriculture sector, reduce income losses faced by affected farmers and ensure continuity in export crop production amid rising climate risks,’ Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at the weekly post-Cabinet meeting media briefing yesterday.

In an effort to further strengthen its longstanding commitment to agricultural development and rural empowerment, Link Natural Products Ltd., has entered into a strategic partnership with Sampath Bank under the Bank’s flagship Sampath Saviya Agri-Entrepreneurship Development Program.

A formal Memorandum of Understanding (MoU) was signed by both parties recently marking the beginning of a long-term collaboration aimed at enhancing village economies through sustainable, profit-driven agriculture.

The initial phase of the initiative is set to focus on establishing Kohombagaswewa and Ambulgaswewa as model agricultural hubs for the cultivation of high-value medicinal crops such as Katuwelbatu, Elabatu and several other varieties. These communities will serve as pilot locations, with planned expansions to additional rural areas as the project progresses, broadening its national impact.

Through this collaboration, farmers will be offered specialised training covering crop management techniques. A key highlight of this initiative is a solution to limited access to reliable markets, which is one of the most pressing challenges faced by rural farmers. To address this, Link Natural will establish a buyback agreement with all participating farmers, ensuring predictable and profitable income streams, reducing financial uncertainty and encouraging long-term crop cultivation.

Link Natural Products CEO Ashan Ransilige said: “Our collaboration with Sampath Bank is driven by a shared vision of creating sustainable and profitable farming opportunities. By providing technical guidance and guaranteed market access, we aim to empower farmers to realise the full potential of their crops, improve livelihoods, and contribute to the growth of rural economies. Together, we are planting the seeds for a healthier, more prosperous future for Sri Lanka’s agricultural communities.”

Sampath Bank will play a pivotal role in connecting farmers with Link Natural Products by overseeing the implementation of project initiatives and facilitating effective communication with local farmers’ associations and community stakeholders. Overall project progress will be jointly monitored through regular updates from both parties. Field inspections and cultivation supervision will be carried out by the Agriculture Division of Link Natural Products to ensure quality, compliance and successful execution of project activities. Through these efforts, the parties aim to not only uplift rural economies, but to also foster youth engagement, women’s empowerment and improved livelihoods among selected communities.

Sampath Bank Chief Human Resource Transformation Officer Dr. Lalith Weragoda said: “At Sampath Bank, we believe that sustainable agriculture is the backbone of rural prosperity. Through our partnership with Link Natural, we are empowering farmers with knowledge, skills, and reliable market access, enabling them to transform their villages into thriving agricultural hubs. This initiative is a testament to our commitment to creating lasting social and economic impact in Sri Lanka’s rural communities.”

In alignment with Sampath Bank’s goals, Link Natural will also work closely with farming families to implement a sustainable medicinal perennial planting project, offering an additional avenue for long-term agricultural income alongside environmental stewardship. Together, both organisations are laying the foundation for a new era of rural development, where knowledge, market access and sustainable practices will combine to create thriving farming communities in Sri Lanka.

Labour Deputy Minister Mahinda Jayasinghe yesterday told Parliament that amendments to the Employees’ Provident Fund Act are being discussed at the tripartite National Labour Advisory Council, as the Government examines whether EPF contributors should be given the option of receiving a regular pension instead of a lump sum upon retirement.

He said the proposal is aimed at strengthening long-term retirement income security for private sector and semi-Government workers amid demographic ageing, while retaining the existing lump-sum withdrawal framework for those who prefer it.

Addressing the House, Jayasinghe stressed that the Government is not seeking to dismantle or replace the EPF, which remains the primary social security mechanism for private sector employees. Instead, the Government is considering whether greater flexibility is needed to address income security risks faced by retirees who currently receive their savings as a single payment.

‘EPF for the private sector and semi-Government is a social security scheme, but we have observed that the ability to access funds before retirement can have an impact in terms of social security,’ he said, noting that interim withdrawals and lump-sum payments can weaken retirement protection over time.

At present, EPF benefits are paid mainly as a lump sum upon retirement, set at 50 years for female members and 55 years for male members. Limited early withdrawals are permitted for specific purposes, including housing construction and medical treatment, subject to eligibility criteria and documentation.

Jayasinghe said existing provisions allow members to withdraw up to 30% of their EPF balance, with a further 20% permitted after 10 years. Of the 744 applications received for such withdrawals, 702 have already been processed, he told Parliament. However, he cautioned that repeated interim payments undermine the Fund’s ability to provide income security at retirement.

The policy discussion comes at a time when the EPF’s financial position has strengthened, even as demographic and fiscal pressures mount. The EPF continues to dominate Sri Lanka’s superannuation sector, accounting for 81.0% of total sector assets by end-2024.

The net worth of the Fund increased 12.6% year-on-year to Rs. 4,375.7 billion by end-2024 from Rs. 3,886.7 billion a year earlier, supported by higher investment income and positive net contributions. Total contributions received during 2024 rose 11.3% to Rs. 234.4 billion, while refunds to members and legal heirs declined 12.9% to Rs. 188.1 billion, resulting in a positive net contribution of Rs. 46.3 billion for the year, compared to a net outflow of Rs. 5.3 billion in 2023.

Investment performance also improved, with total investment income rising 6.8% to Rs. 513.8 billion in 2024. Interest income remained the dominant source, increasing to Rs. 455.1 billion, while dividend income and fair value gains on listed equity investments recorded strong growth. The Central Bank’s Governing Board had approved an interest rate of 11% on EPF member balances for 2024, subject to ministerial concurrence.

Jayasinghe said the National Labour Advisory Council, which brings together representatives of Government, employers and trade unions, is assessing how the legal framework can be updated to reflect evolving labour market conditions while preserving the Fund’s core social security role.

Any move towards an optional pension or annuity scheme, he indicated, would be designed to complement the existing EPF structure rather than replace it, offering contributors a choice between lump-sum withdrawal and a steady retirement income stream.

The Government, he said, is keen to ensure that reforms strengthen long-term social security for private sector and semi-government workers, particularly as Sri Lanka’s population ages and pressures on household retirement savings intensify.

The single largest investor in Government securities, the EPF has long been a captive force for Government Budget deficit financing and underwent a controversial Domestic Debt Optimisation Program restructuring process in 2023.

The EPF was required to participate in the Domestic Debt Optimisation program by exchanging part of its Treasury bond holdings, receiving new Bonds carrying a 12% coupon until end-2025, reducing to 9% thereafter. The Bonds begin maturing from 2027, with returns beyond that point subject to market conditions. Under the framework, pension funds that did not participate in the exchange were to be taxed at 30%, compared to the concessional 14% rate for participating funds at the time.

Shares of Wealth Trust Securities Ltd. (WTS), following the successful completion of its Initial Public Offering (IPO), will commence trading today on the Colombo Stock Exchange’s Diri Savi Board under the ticker symbol ‘WLTH-N-0000’.

The company’s IPO, which opened for subscription on 17 December 2025, offered 71,548,244 Ordinary Voting Shares at an issue price of Rs. 7 per share, aiming to raise approximately Rs. 500.8 million. The offering was oversubscribed in all investor categories within minutes of opening, underscoring strong investor demand. The IPO was oversubscribed by 14.9 times, attracting over 10,000 applications.

Proceeds from the IPO will be used to strengthen WTS’s core capital base, enhancing its capacity to absorb market and interest-rate risks and support the expansion of its Government securities trading portfolios. As a Primary Dealer authorised by the Central Bank of Sri Lanka, and licensed by the Securities and Exchange Commission of Sri Lanka as a stock broker (debt) and stock dealer (debt), WTS plays a key role in the country’s capital markets by providing trading, distribution, and market-making services for government securities.

The listing on the Diri Savi Board marks a significant milestone in WTS’s growth trajectory and provides investors with the opportunity to trade its shares on Sri Lanka’s regulated equity market.

Members of the United Nations Security Council, including allies of the United States, have condemned Washington’s abduction of Venezuelan President Nicolas Maduro.

The abducted leader has told a court in New York that he is a prisoner of war and pleaded not guilty to drug charges.

On Monday, Maduro pleaded not guilty to federal charges, including narco-terrorism and conspiring to import cocaine. In a blue and orange prison uniform, he listened to the indictment filed by prosecutors against him and his co-defendants, including his wife and son.

Venezuelan Vice President Delcy Rodriguez has been sworn in as the country’s interim leader. She has indicated she will cooperate with the US, but described Maduro and his wife as ‘hostages’.

US President Donald Trump has threatened further military action against Venezuela, as well as against Colombian President Gustavo Petro, who has dismissed the threat as ‘illegitimate’.

Singapore Airlines yesterday began the inaugural daytime flight services between Colombo and Singapore further expanding connectivity between Sri Lanka and the airline’s global network.

The new daytime service will operate on Tuesdays, Thursdays, and Sundays, strengthening the airline’s existing flight schedule and offering customers greater flexibility and choice when travelling between the two cities.

With this addition, Singapore Airlines’ services between Colombo and Singapore will increase to ten flights per week.

The flights will be operated by Singapore Airlines’ state-of-the-art fleet, including the Airbus A350 and Boeing 787-10 Dreamliner.

Customers travelling on the new service will continue to enjoy the airline’s premium onboard experience, featuring award winning service and advanced inflight entertainment.

The newly introduced daytime flight schedule is expected to deliver more seamless and convenient connections via Singapore Changi Airport to key destinations across the airline’s extensive route network. This includes improved connectivity to major cities in Australia, China, and the United States, supporting both outbound and inbound business and leisure travel.

Singapore Airlines General Manager Sri Lanka Biren Poh said: ‘The introduction of a daytime service between Colombo and Singapore underscores our long-standing commitment to the Sri Lankan market. This new operation provides customers with greater scheduling flexibility and enhanced connectivity to key global markets through the Singapore hub. We remain focused on meeting the evolving travel needs of our customers while supporting tourism and trade between Sri Lanka and the rest of the world.’

The United Nations World Food Program (WFP) welcomed a timely contribution of $ 500,000 from the Government of the Republic of Korea to deliver, urgent lifesaving cash assistance to families whose lives and livelihoods were devastated by Cyclone Ditwah in Sri Lanka.

This timely support strengthens the Government of Sri Lanka’s ongoing response and will enable WFP to deliver urgently needed cash transfers to nearly 32,000 people (8,000 households) whose livelihoods, incomes and access to markets have been severely disrupted.

WFP will deliver the cash assistance through established financial service providers using a secure transfer system that ensures assistance reaches people quickly, safely, and transparently. The emergency cash transfers, will allow affected families to purchase food and essential items locally, allowing them to make their own choices, maintain dignity, and meet their most urgent needs during this critical period.

‘This support comes at a crucial moment for families who have lost income, food stocks and stability overnight,’ said WFP Country Director a.i. in Sri Lanka Robert Olive. ‘The Republic of Korea’s contribution enables WFP to act fast-helping families put food on the table while standing in solidarity with the Government of Sri Lanka to reach those most at risk.’

Under the Korea-funded program, WFP’s assistance is aligned with national benchmarks for the cost of a basic diet. Each household will receive cash, to cover the cost for a family of four. This support will help families cover urgent food needs as they begin to recover.

‘I extend my deepest condolences to the affected families who have lost their loved ones so unexpectedly. I am confident that the country will once again find resilience and strength to stand firm during this challenging time just like in the past’, said Ambassador of the Republic of Korea to Sri Lanka Miyon Lee. She also expressed her sincere appreciation to the World Food Program (WFP), a long-standing partner of Korea in Sri Lanka, for serving as the implementing partner.

WFP extends its sincere appreciation to the Government of the Republic of Korea for its steadfast support to the people of Sri Lanka.

Dhananjaya de Silva, Sri Lanka’s Test captain is all set to return to T20 International cricket after a gap of 18 months when the three-match series against Pakistan played for the Rhino Roofing Cup opens at the Rangiri Dambulla International Cricket Stadium at 7 p.m. today.

Sri Lanka’s top and middle order failure to deliver has forced the national cricket selectors to bring back De Silva who will bat at no. 4 displacing Kusal Perera who has been rested as a precautionary measure after being hit on the hand during practice. The advantage that De Silva brings to the table is that he can also bowl spin and be used for the full quota of four overs, thereby solving Sri Lanka’s perennial issue of whether to play a 7-4 or 6-5 combination. With De Silva they can opt for 7 batters with him playing the role of fifth bowler.

‘He is a player who can steady an innings. He has done it across all formats,’ said Dasun Shanaka who has returned to captain his country in another T20 World Cup. ‘The thing is that DDS walks out mostly when the pressure is on and when it is difficult to hit boundaries. He has changed a few things with his batting. Importantly, he can contribute with the ball. It is a vital thing when it comes to T20I cricket to have those options. DDS has changed his game plan which is good. He is a good package for T20 cricket. The biggest positive is he has changed his batting style to suit T20I cricket which is an advantage for us.’

Returning to the side also is former T20I captain Charith Asalanka who missed the Pakistan T20 Tri-Series and returned home due to illness.

Sri Lanka’s 11 for today: Pathum Nissanka, Kamil Mishara, Kusal Mendis, Dhananjaya de Silva, Charith Asalanka, Janith Liyanage, Dasun Shanaka, Wanindu Hasaranga, Maheesh Theekshana, Dushmantha Chameera and Nuwan Thushara.

In the event of the game being reduced to less than 20 overs Sri Lanka have the option of replacing Liyanage with fast bowler Eshan Malinga.

For the series Sri Lanka has picked a squad of 18 players that includes one uncapped player – 21-year-old off-spinner Traveen Mathew.

Dambulla is usually renowned as a dry zone but this time of the year it is the rainy season here.

‘We don’t want to do too many changes. In home conditions we have put together a combination that has worked for us. We need to put suitable players in those positions. It is important that we make most of the home conditions. We wanted good wickets for this series. Not sure how the weather will affect them. We have an idea of the pitches and we need to play well taking conditions into consideration. By the time the England series comes up, we want to have a clear idea who will feature in our side for the World Cup,’ said Shanaka.

In preparation for the series Sri Lanka played warm-up matches at the R Premadasa Stadium and at Dambulla.

‘We tried a few different things during those trial games. We know that from over number six to over number 15 we were not happy with our strike rate and that is something we’ve worked on. We have a lot of experience. These players have matured as they have played together since 2020 under my captaincy. I like to have a stable team. But there are occasions when players are out of form, you need to look at other options. It happened to me as well. Then you have to go back to HPC (High Performance Centre), work on your game and make a comeback. I don’t think we have been unfair to any player. We are searching for the best squad.’

For Pakistan the series is their final preparation before the T20 World Cup where they will play all their matches in Sri Lanka.

‘This series will help us understand the conditions more. We are very familiar with Sri Lanka as we travel here often. Anyway, playing a series before the World Cup is good for us,’ said Pakistan captain Salman Agha at the pre-match press conference.

Pakistan are without some of their experienced cricketers who are currently playing in the Big Bash League (BBL) in Australia – Shaheen Shah Afridi, Babar Azam, Mohammad Rizwan, Haris Rauf and Hasan Ali. However, apart from wicket-keeper/bat Khawaja Nafay and spin all-rounder Shadab Khan the rest of the squad were part of the recently concluded T20 Tri-Series in Pakistan between Sri Lanka and Simbabwe. Pakistan won the final beating Sri Lanka by six wickets.

‘They are mega stars and have done well for us. We will miss them no doubt. We are trying some new players. Hopefully they will come good,’ said Agha.

President Anura Kumara Dissanayake in his 2026 New Year message stated, ‘We can collectively recreate a country far better than the one we inherited.’ It is a powerful and hopeful statement, one that resonates deeply with a nation repeatedly tested by economic collapse, governance failures, and now yet another natural disaster.

The real question is not whether we can rebuild Sri Lanka better. The question is whether we are learning from past mistakes and rebuilding in the right way, or whether we are once again mistaking speed for progress.

The recent devastation caused by the Ditwah cyclone offers a critical test of our national maturity, institutional discipline, and commitment to long-term resilience.

In the immediate aftermath of any disaster, speed is essential. Roads must reopen, communities must reconnect, and economic activity must resume. However, urgency should never replace accountability.

Following the cyclone, several upcountry roads were badly damaged or completely washed away due to landslides and uncontrolled runoff from hill areas. Reports even indicated that soil displacement from the hill country travelled as far as Kotmale, highlighting the scale and seriousness of the environmental impact.

Yet, within weeks, we began hearing official statements that:

Road networks have been restored

Transport is now possible

Major connectivity has been re-established

These announcements may reassure the public but they raise an uncomfortable and necessary question: Have these roads been rebuilt to withstand the next disaster?

Are we rebuilding to any recognised standard?

Reconstruction is not merely about putting asphalt back on washed-out land. It requires:

Proper geotechnical assessments

Slope stabilisation and drainage design

Compliance with engineering and safety standards

Independent quality audits

Have the newly repaired roads:

Been designed according to international or nationally accepted engineering standards?

Undergone quality checks during construction?

Been audited after completion?

Been assessed for future rainfall and climate-related risks?

If heavier rains arrive next year or even next month are these roads safe for public use? Without transparent answers, declarations of ‘completion’ are premature and potentially dangerous.

Fast work and quality assurance: A dangerous trade-off

Sri Lanka has a long and painful history of confusing quick fixes with permanent solutions.

We have seen:

Roads repaired repeatedly at the same locations

Flood bunds breach year after year

Public infrastructure collapse within months of completion

In many cases, the root cause was not lack of funding but lack of responsibility for quality.

Global case studies: Lessons we must embrace

Japan: Strict standards and continuous audits

Japan’s resilience to earthquakes and typhoons is not an accident; it is the result of strict building codes, robust inspection systems, and a culture of institutional learning. In the 2024 earthquakes, infrastructure built to resilient standards suffered proportionately fewer losses, illustrating the value of compliance and quality enforcement. **

These standards are complemented by continuous audits, community awareness, and integration of cutting-edge engineering into public works.

Bangladesh: National codes and resilient design

Bangladesh, highly vulnerable to cyclones and flooding, has developed a National Building Code (BNBC) that governs construction safety and environmental resilience. Such codes, when enforced with discipline and transparency, reduce risk and protect citizens.*

Sri Lanka must adopt and enforce similarly robust codes for road, bridge, and public infrastructure reconstruction, especially in hazard-prone regions.

Pakistan and Zimbabwe: Build back better in practice

In post-earthquake reconstruction after the 2005 Pakistan quake and the Cyclone Idai floods in Zimbabwe, the BBB approach guided reconstruction to include stronger infrastructure and community capacity building. Studies show that reconstruction that focuses merely on restoring pre-disaster conditions leaves communities vulnerable to future shocks; higher standards and social inclusion directly contribute to resilience.

The current reconstruction effort involves a mix of: Armed forces; Government agencies; Provincial authorities; Private contractors and Volunteer and donor-supported initiatives.

While this collective effort is commendable, it creates a serious governance gap:

Who is ultimately responsible for certifying final quality and safety?

When everyone is involved, but no one is clearly accountable, the risk of failure multiplies.

Lessons from our own history

Sri Lanka does not need to look abroad for lessons, we have lived them ourselves.

After past floods and landslides, hastily repaired infrastructure often failed again within a few monsoons.

Poorly designed roads in hill country areas have contributed to repeated landslides due to blocked natural water flows.

In several major public infrastructure projects, post-construction audits were either delayed, ignored, or never conducted.

The result has always been the same:

Loss of public money

Loss of public trust

Loss of lives

History consistently proves one truth: When no one is responsible for quality, disaster is only postponed and not prevented.

Are we creating the conditions for the next disaster?

Climate change ensures that extreme weather events will become more frequent and more intense. This means that rebuilding to old standards or no standards at all is no longer acceptable.

If roads are rebuilt without:

Proper slope protection

Scientific drainage planning

Environmental impact consideration

Independent certification

Then we are not rebuilding, we are preparing the ground for the next collapse. Worse, we may be doing so with public applause, believing that speed equals success.

Recreating a better country: What must change

If we truly want to ‘recreate a country far better than the one we inherited,’ rebuilding must be guided by:

Systematic planning, not ad-hoc decisions

Independent technical audits

Clear assignment of responsibility

Transparency in reporting standards and safety

Long-term resilience, not short-term optics

A better country is not one that rebuilds fastest but one that builds wisely, safely, and sustainably.

Conclusion: The choice before us

Sri Lanka stands at a familiar crossroads. We can choose the old path, repair quickly, announce success, and wait for the next failure. Or we can choose a harder but wiser path, learn from our mistakes, enforce standards, and demand accountability.

The President’s vision is achievable. But it will only become reality if:

Speed is balanced with discipline

Collective action is matched with clear responsibility

And rebuilding is measured not by how fast roads reopen but by how long they endure

The true test of national progress is not how we respond to disaster but whether we ensure it does not happen again in the same way.

The Yeti-SSC Open Tennis Championship, one of the most prestigious and long-standing national tennis tournaments, will be held from 9 to 25 January at the SSC Courts in Maitland Place.

The 2026 Yeti-SSC Open Championship will feature a comprehensive line-up of events including Boys’ and Girls’ Singles and Doubles (Under-12 to Under-18), Men’s and Women’s Singles, Doubles and Mixed Doubles as well as Veterans categories (Over 35, 45 and 55).

The 2026 edition is expected to draw more than 1,000 junior and senior participants, further reinforcing its position as one of the country’s most eagerly awaited tennis events.

The tournament is set to showcase thrilling performances from leading national players including the current Men’s national champion Apna Perera, Women’s national champion Dinara De Silva, Davis Cup players Ashen Silva, and Thehan Wijemanne, as well as top-ranked juniors such as Ganuka Fernando (Boys’ Under-18) and Sandithi Usgodaarachchi (Girls’ Under-18), among many other prominent competitors.