Category: Daily Financial Times

The Cabinet of Ministers at their first meeting for 2026 held on Monday approved calling for expressions of interest (EOIs) from investors to lease 24 identified bungalows and houses under a public-private partnership (PPP) model, aiming to ensure more productive and economically viable use of underutilised State assets.

The selected properties will be offered on a 30-year lease basis, with the Government noting that the process will be carried out without creating social concerns.

Addressing the weekly post-Cabinet media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the move follows recommendations made by an appointed Officers’ Committee tasked with identifying effective strategies to utilise former ministerial residences and other underutilised State-owned properties.

According to Jayatissa, the committee has proposed repurposing the bungalows and houses for embassies, international organisations, diplomatic missions, Government and Government-affiliated institutions, as well as high-end restaurants, boutique hotels and other productive investment ventures.

On 9 December 2024, the Cabinet of Ministers decided to appoint an Officers’ Committee, which called for a comprehensive review of properties previously used as ministerial quarters and other underutilised premises. The objective was to ensure their effective and economical utilisation while aligning with broader public interest and development goals.

‘The EOI process is expected to help identify suitable investors and projects that can maximise returns from these assets, while supporting private sector participation and reducing the fiscal burden on the State,’ he added.

Deloitte Sri Lanka had advised DP Logistics Ltd., the logistics cluster of the David Pieris Group of Companies, on its strategic acquisition of Logicare Ltd., from Ceylon Tea Brokers PLC.

According to disclosures made to the Colombo Stock Exchange, the transaction, valued at Rs. 1.3 billion was made up of an Rs. 635.3 million direct purchase consideration (and balance in assuming existing debt), that was formalised through a Share Sale and Purchase Agreement signed on 30 October 2025.

Logicare, established as a fully owned subsidiary of Ceylon Tea Brokers PLC in 2017, has been a notable player in providing integrated logistics and warehousing solutions. Deloitte’s Strategy, Risk and Transactions team supported DP Logistics through the buy-side process by performing a full scope Financial Due Diligence and a full scope Tax Due Diligence.

Led by Deloitte Sri Lanka and Maldives Partner – Strategy Risk and Transactions Ravidu Gunasekera, and Deloitte Sri Lanka Partner – Tax Damith Gayan Wakishta, the due diligence enabled DP Logistics to assess key financial and tax considerations associated with the acquisition.

Deloitte was pleased to have supported DP Logistics on this significant transaction. The firm’s objective was to bring clarity and insights through a robust due diligence process, enabling the client to make informed decisions as it continues to strengthen its position in the logistics and supply chain sector.

Deloitte remains committed to supporting clients across Sri Lanka as they navigate complex transactions and pursue opportunities for growth.

We are now at the beginning of the year 2026. If we reflect on the wishes we extended to others and those we received in return, the word ‘happy’ will almost certainly appear at the top of the list. There is nothing to be surprised about this, because living a happy life is one of the primary goals of our lives. In reality, however, this often appears as a challenging goal to realise in everyday life. In August 2025, a Harvard professor, Arthur C. Brooks, provided valuable insights into this matter in his book ‘The Happiness Files: Insights on Work and Life’, published by Harvard Business Review Press [1].

In my view, this book not only provides research-backed practical recommendations for various aspects of our lives that affect our happiness, but also helps us re-conceptualise happiness itself. Hence, the key insights of this book might guide us to begin the new year in a meaningful manner.

Worrying and its influence on happiness

It is worthwhile to spend some time reflecting on the amount, nature, and reasons for worries in our daily lives. Worrying is a mental process in which the mind attempts to deal with uncertain situations that may have negative outcomes. These worries may relate to past events and, in most cases, to future events that have not yet occurred. We may also realise that some worries relate to our own actions (such as job performance or expected examination results), while others are linked to external factors (such as limited career growth opportunities or inflation). Although worrying is a natural psychological process, this book reminds us of its often-unobserved influence on anxiety and happiness in our everyday lives. More interestingly, it explains, with scientific evidence, that most of the events we worry about do not actually happen in reality. Therefore, it would be worthwhile to reflect on our daily worries and manage them in the new year in order to adopt a fresh approach to our lives.

Dealing with criticisms

Technically, criticism refers to the evaluation of the positive and negative aspects of a person or thing, expressed either verbally or in writing. However, in reality, many people do not prefer to receive negative criticism but are eager to give it. In addition to matters in organisational life, it is much easier than in the past to share opinions, even about social incidents, in today’s social media-driven world. This book uncovers various aspects of this issue and its impact on individuals’ happiness. An important point the author raises is that even though we cannot avoid offering criticism, we can change the way we deal with it. For instance, it guides readers to offer criticism as a gift to the receiver rather than as a weapon and explains how to do so.

Managing relationships

As social beings, it is almost impossible for us to function without social interactions. In this regard, the author highlights the often-ignored value of good relationships in attaining happiness. Drawing on scientifically proven findings, the book explains how family and friends can influence our lives. On the other hand, not every relationship affects happiness in the same way. More importantly, it provides guidance on how to identify and manage toxic relationships. For example, as suggested in the book, learning how to distinguish a real friend from a deal friend, or even a frenemy, is essential for a happier life.

Happiness depends on the how, not just the what

The author further reminds us of an important aspect of our work and achievements. Specifically, the book shows that not only what we have done or achieved matters for happiness, but also how we achieve it. For instance, even if someone passes an examination by cheating, the result will not provide a genuine sense of inner accomplishment. The same idea applies to promotions at work. Therefore, it is vital to pay attention to this aspect in our daily matters. Especially in this AI-led era, we may be able to bypass previous indicators of genuine effort, but we cannot artificially generate the inner accomplishment associated with those tasks. In addition, the book explains how engaging in satisfactory and meaningful work can positively influence our happiness.

Happiness is not a destination

This book also provides valuable guidance on a common behaviour that many unknowingly follow. That is, we expect to gain happiness once certain objectives are achieved. In other words, we tend to perceive happiness as a destination. For instance, many workers express that they will be able to stay happy once they shift from their current workplace. Unfortunately, after joining a new organisation, they often encounter new issues that hinder their happiness. As a result, the cycle continues to repeat. However, the book reminds us of the unavoidable nature of negative emotions associated with our lives. It therefore encourages readers to view happiness as a progressive journey and to focus on achieving ‘happierness’ rather than a final state of happiness. In my opinion, this book is a good choice for those who are looking for a fresh and novel start to the New Year.

Despite unprecedented challenges – tariff pressures and the devastation brought by Cyclone Ditwah – 2025 will be remembered as a year of records for Sri Lanka. It was a year in which discipline, reform, and resilience converged, and the country demonstrated that recovery is not just possible – it is happening.

While final December numbers are still being compiled, the trends are unmistakable. Across monetary policy, fiscal management, macroeconomic stability, and capital markets, Sri Lanka outperformed expectations.

GDP growth for 2025 is expected to be around 5%, exceeding earlier forecasts. This recovery – after years of contraction – is broad-based and reflects improving confidence across agriculture, industry, and services.

Inflation remained low – even deflationary at times – while interest rates eased to the 8-9% range (AWPLR), supporting credit growth without destabilising prices. The rupee was broadly stable most of the year, with a modest depreciation toward the end due to vehicle imports and the cyclone shock.

Sri Lanka also recorded a Balance of Payments surplus, strengthened foreign reserves of around USD 6.3 billion, and rebuilt buffers – even after absorbing nearly USD 2 billion for vehicle imports and servicing close to USD 4 billion of external obligations.

If there was one area where structural discipline was most visible, it was public finance.

Government revenue reached the highest level in history, driven by strong performance from IRD and Customs.

The budget deficit declined sharply, reflecting better fiscal control.

The primary surplus increased, signalling sustainability in debt management.

This discipline – supported by the IMF program – is changing habits, expectations, and institutions. Importantly, debt restructuring is nearly complete, with agreements covering about 99% of eligible obligations, including in-principle progress on SriLankan Airlines.

Exports reached all-time highs, with several sectors outperforming:

Garments

Tea

Coconut products

IT and services

Tourist arrivals reached their highest since 2018, and workers’ remittances recorded the largest inflows ever. Together, these sustained our external earnings base and reduced vulnerability.

The Colombo Stock Exchange (CSE) delivered another remarkable year:

ASPI gained ~40% in 2025, on top of 50% in 2024, and 25% in 2023.

In just three years, the ASPI has risen 166% – not on speculation, but on earnings growth and improving fundamentals.

Corporate results confirm this:

Total listed company earnings (first three quarters of 2025): Rs. 520 billion

2024 total: Rs. 665 billion

2023 total: Rs. 456 billion

Market valuations remain attractive. The CSE trades at a P/E of 10.7, well below regional peers and historical averages. Market capitalisation has reached Rs. 8 trillion ($ 26 billion) – only about 25% of GDP, compared with 100-200% in mature markets. Liquidity improved materially too, with average daily turnover hitting a record Rs. 5.18 billion.

The only cloud: foreign outflows of Rs. 38 billion in 2025 (after Rs. 9.9 billion in 2024). This should reverse as ratings improve and confidence builds.

Cyclone Ditwah inflicted immense human and economic loss. Estimates suggest rebuilding costs near $5 billion. Yet within this tragedy lies a generational opportunity: to rebuild better – stronger, safer, and more productive.

The Government already holds about Rs. 1.2 trillion in treasury cash, of which roughly Rs. 500 billion may be deployed initially. Additional funding will come from:

Re-insurance

Donor support

An upcoming international donor conference

Budgeted capital expenditure of Rs. 1.5 trillion

Historically, only a fraction of capital budgets were spent. In 2025, usage was roughly 25%. In 2026, utilisation could exceed 80%, injecting stimulus and pushing growth beyond 5-6%. This will require execution discipline – but the payoff could be transformative.

Several elements point to continued momentum:

IMF discipline remains in place – and working.

SOE restructuring continues.

Infrastructure spending will accelerate.

Increased state sector Salaries, pensions, and expanded Aswesuma support will boost consumption.

Private sector and capital markets will play a larger role than ever.

This is not the speculative boom of old. It is a recovery supported by fundamentals, policy credibility, and rebuilding needs.

The next phase belongs to businesses, investors, entrepreneurs, and innovators who believe in Sri Lanka’s rebuilding story. Opportunities will emerge across construction, energy, agriculture modernisation, logistics, banking, IT, and capital markets.

Those who positioned early – and believed – have already seen value creation. With reforms continuing, 2026 can be another blockbuster year, not by chance, but through resilience, discipline, and shared effort.

Sri Lanka has shown that when reform and resolve align, records can be broken – even in the toughest of times. Now is the moment to rebuild stronger, together.

The Cabinet of Ministers on Monday approved awarding the procurement contract for the printing and supply of vehicle number plates to M/s South Asian Technologies Ltd., in a move aimed at resolving prolonged shortages and delays in the country’s vehicle registration system.

Addressing the weekly post-Cabinet media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the decision comes amid a surge in vehicle registrations following the lifting of import controls in 2025, which led to a sharp influx of new vehicles and exposed weaknesses in the existing system.

He explained that the country had effectively operated under a monopoly arrangement for around 25 years in the supply of number plates, a system the Government now intends to reform. He added that similar changes are also being pursued in other sectors, including medicines, to improve efficiency and transparency.

‘Under the new procurement, the contract has been awarded for a period of five years following a competitive bidding process in which four bids were submitted. The agreement includes strict performance conditions,’ he said.

Dr. Jayatissa also noted that the introduction of the new supplier will not result in any additional cost to vehicle owners.

He revealed that under the previous arrangement, revenue generated through licence plates was not received by the Government, while a significant cost burden was placed on customers. ‘The new procurement framework seeks to correct these anomalies, ensure better revenue flows to the State and ease costs for the public,’ he added.

Dr. Jayatissa said the Government will closely monitor the implementation of the new contract to ensure timely delivery, system reliability and value for money, as Sri Lanka works to clear the backlog and stabilise vehicle registrations.

The number plate shortage had forced many newly registered vehicles to operate on roads with temporary paper signs, highlighting the severity of the issue and prompting urgent corrective action by the authorities.

Bangladesh’s interim Government has banned broadcast of this year’s Indian Premier League (IPL), the latest flashpoint in a growing row with neighbouring India, which has now extended to cricket ties between the two nations.

The move follows the decision by the Board of Control for Cricket in India (BCCI) to have the Kolkata Knight Riders drop Bangladesh pacer Mustafizur Rahman, who had signed for the IPL franchise for this season.

The unceremonious dumping of a ‘star player’ like Mustafizur from the IPL ‘defied logic’ and had ‘hurt people’, the country’s Ministry of Information and Broadcasting said in a statement explaining its decision.

Bangladesh have also refused to play their matches of next month’s Twenty20 (T20) World Cup in India, demanding that those be staged ?in Sri Lanka, co-host of the 20-team tournament.

The Bangladesh Cricket Board’s directors met in an emergency meeting on Sunday and confirmed their decision shortly afterwards.

‘Following a thorough assessment of the prevailing situation and the growing concerns regarding the safety and security of the Bangladesh contingent in India and considering the advice from the Bangladesh Government, the board of directors resolved that the Bangladesh national team will not travel to India for the tournament under the current conditions,’ it said.

‘The board believes that such a step is necessary to safeguard the safety and wellbeing of Bangladeshi players, team officials, Board members and other stakeholders and to ensure that the team can participate in the tournament in a secure and appropriate environment,’ the statement added, urging the ICC to take swift action.

The International Cricket Council (ICC) has not publicly responded to Bangladesh’s demand to play World Cup matches in Sri Lanka.

Tensions have risen in recent weeks between India ?and Bangladesh.

Following the protests, the Indian board asked Knight Riders to drop Mustafizur.

The IPL, the world’s richest T20 league, is scheduled from 26 March to 31 May.

A new study by the Institute of Policy Studies of Sri Lanka (IPS) has revealed the extent and nature of sexual and gender-based violence (SGBV) experienced by Sri Lankan female migrant domestic workers in the Middle East. The research underscores the urgent need for stronger protection frameworks to safeguard this vulnerable group and reduce their exposure to exploitation and abuse.

The study, titled: ‘Empirical Evidence on Sexual and Gender Based Violence Faced by Migrant Female Domestic Workers,’ draws on complaint data lodged at the Sri Lanka Bureau of Foreign Employment (SLBFE) and key informant interviews. It highlights how female domestic workers face a continuum of violence, including violations of basic human needs, harassment, deception, wage theft, and forced labour, exacerbated by systemic issues such as the Kafala sponsorship system and informal work arrangements.

‘Female domestic workers migrate under extreme economic pressure, yet their vulnerabilities abroad expose them to multiple forms of violence,’ said Dr. Bilesha Weeraratne, lead author of the study and Research Fellow and Head of Migration and Urbanisation Policy Research at the Institute of Policy Studies of Sri Lanka (IPS). ‘Our findings show that despite existing institutional and international frameworks, SGBV remains a pressing issue requiring urgent, coordinated action.’ Co-author Yashora Gunawardena, Research Assistant at IPS, added that the study’s unique use of SLBFE complaint files provides fresh insights into the post-pandemic realities of migrant workers.

The report recommends action along four key pillars:

1. Pre-emptive risk identification and awareness raising mechanisms,

2. Efficient and speedy reporting mechanisms,

3. Effective support structures for positive coping mechanisms,

4. Binding penalty measures to prevent further incidence of SGBV.

The study emphasises that recruitment agents, employers, governments, and civil society all have a role to play in minimising SGBV and supporting survivors. This publication serves as an urgent call to strengthen existing frameworks, embrace innovative solutions, and reaffirm Sri Lanka’s commitment to safeguarding the rights and wellbeing of its migrant workforce.

Colombo Dockyard PLC (CDPLC) has launched the 10th and final vessel of the 5000 DWT Eco Bulk Carrier series, named ‘Misje Kandy’ being built to Misje EcoBulk AS of Norway.

As the final vessel in the Misje series, this occasion represented a significant milestone for the Shipyard. It also held special national significance, as the vessel was named after Kandy, the ancient capital of Sri Lanka.

The ceremonial launching is the process of floating or transferring the vessel to water for the first time in her journey at sea. Symbolically this is done by breaking a ‘pot of milk’ according to Sri Lankan traditions over the ship’s bow area inviting good luck to the vessel, the crew and the owners and subsequently filling the dock with sea water enabling the vessel to float.

The launching ceremony was graced by the Owner Roald Misje, CFO Alina Printseva, Site Manager Thusitha Herath and Site Superintendents Venura Wanasinghe and Prince Jawahar all from Misje EcoBulk. DNV Country Manager Saman A. Kumarasinghe also was present at the ceremony. The MD/CEO Thimira Godakumbura, together with the Management Team of CDPLC, was present to mark the occasion.

In his address, Godakumbura expressed his sincere gratitude to the Owners for naming the vessel Misje Kandy, and thanked them for the thoughtful and meaningful gesture. Roald Misje, in turn, stated that the cooperation had been highly successful, having built ten vessels over the past five years.

CDPLC said it contributes heavily to the National Export earnings from the Shipbuilding sector with much needed foreign currency to the Sri Lankan economy and plays a leading role in uplifting and driving the maritime development strategy of Sri Lanka.

The Colombo stock market closed on the up yesterday for the ninth consecutive session, generating Rs. 67 billion in value and taking the total up to Rs. 218.6 billion for the first three trading days this year.

The ASPI ended 1.21% on the up, gaining 278.16 points to 23,292.91 and the S and P SL20 ended 2.19% up or 136.41 points to 6,363.85.

Market turnover was nearly Rs. 6.6 billion on over 154.7 million shares traded. Foreign investors were net sellers with a net outflow of nearly Rs. 8 million.

First Capital Securities said the bullish sentiment of the previous session continued into yesterday.

The index exerted a steady upward momentum during the day, heavily weighing on the buying interest towards Banking sector counters. Top positive contributors to the ASPI were HNB, COMB, JKH, NDB and SAMP.

Both retail and HNW investors were highly active in trading, with particular interest exhibited towards Banking and Poultry sector counters.

The Banking sector contributed 32% of total turnover, while Capital Goods and Food, Beverage and Tobacco sectors together accounted for 36%. Cables and Conductors sector counters portrayed some selling pressure.

Asia Securities said investor interest was largely focused on banking counters, with notable gains in SDB, HNB.N, NDB, COMB.N, SAMP and DFCC. Broader market participation also supported the upward movement as SLTL, CIC, HAYL, JKH and HHL closed in green.

Turnover was led by COMB.N, SAMP and RAL. HNB.N and COMB.N emerged as the largest contributors to the index. Market breadth remained positive, with 138 price gainers outpacing 103 price decliners.

Net foreign buying topped in COMB.N at Rs. 84.4 million while net foreign selling topped in PKME.N at Rs. 36.4 million. Crossings accounted for 15.3% of turnover led by COMB.N (Rs. 315.8 million), SDB.N (Rs. 150.8 million) and SAMP.N (Rs. 149 million). Market P/E was 11.02.

From left: Prime Minister’s Office Additional Secretary – Development A.B.M. Ashraff, Dialog Axiata Group Chief Corporate Officer Asanga Priyadarshana, Health Ministry Additional Secretary – Medical Services Dr. Kumara Wickramasinghe, Health and Mass Media Ministry Secretary Dr. Anil Jasinghe, Education, Higher Education, and Vocational Education Ministry Secretary Nalaka Kaluwewa, Health and Mass Media Minister Dr. Nalinda Jayatissa, Prime Minister of Sri Lanka Dr. Harini Amarasuriya, Digital Economy Deputy Minister Eranga Weeraratne, Dialog Axiata Director/Group Chief Executive Supun Weerasinghe, Secretary to the Prime Minister Pradeep Saputhanthri, Digital Economy Ministry Acting Secretary Waruna Sri Dhanapala, Dialog Axiata Group Chief Marketing Officer Lasantha Thevarapperuma, Telecommunications Regulatory Commission of Sri Lanka Director General Air Vice Marshal Bandula Herath (Retd.)

Dialog Axiata PLC has committed LKR 420 million in support of the Government’s Rebuilding Sri Lanka initiative, aimed at accelerating recovery in the aftermath of Cyclone Ditwah. The commitment will support critical recovery efforts across healthcare and education benefiting communities in affected regions. These include the restoration and upgrading of essential hospital infrastructure and the refurbishment of ICT facilities in affected schools, in collaboration with relevant authorities.

The commitment was formalised at a meeting held at the Prime Minister’s Office, in the presence of Prime Minister of Sri Lanka Dr. Harini Amarasuriya, Health and Mass Media Minister Dr. Nalinda Jayatissa, Digital Economy Deputy Minister Eranga Weeraratne, Secretaries to the relevant Ministries; senior Government officials; and senior representatives of Dialog. The discussions focused on the collaborative framework for the implementation of the proposed education and healthcare initiatives in alignment with national priorities.

In the healthcare sector, Dialog will partner with the Health Ministry to support the restoration and upgrading of critical hospital infrastructure at Chilaw District General Hospital, Divisional Hospital Kotmale, Divisional Hospital Madulkele, and Base Hospital Puttalam. In the education sector, Dialog will work with the Ministry of Education to refurbish computer laboratories in over 20 cyclone-affected schools, restoring ICT infrastructure and connectivity to support continued learning.

Prime Minister of Sri Lanka Dr. Harini Amarasuriya said, ‘Public-private partnerships play a critical role in advancing national priorities, particularly during periods of recovery following a disaster of this scale. The Government appreciates Dialog’s strong commitment to the Rebuilding Sri Lanka initiative, which will support the restoration of essential services and strengthen preparedness for the future. As Minister of Education, I also recognise the importance of restoring digital access and learning continuity for students affected by the cyclone. Such collaborations are vital to ensuring meaningful, long-term outcomes for affected communities.’

Health and Mass Media Minister Dr. Nalinda Jayatissa said, ‘Strengthening healthcare infrastructure following a disaster is critical to ensuring uninterrupted care for affected communities. Dialog’s support towards restoring and upgrading key hospital facilities will contribute meaningfully to improving resilience within the public health system.’

Dialog Axiata PLC Director/Group Chief Executive Supun Weerasinghe said, ‘Cyclone Ditwah has had a profound impact on communities across the country, leaving many Sri Lankans facing significant challenges. Through this commitment, we are focused on restoring critical healthcare services and rebuilding digital access for students, while supporting national recovery efforts aligned with Government priorities.’

During and immediately following Cyclone Ditwah, Dialog supported over 8 million customers across its services through the provision of free voice, SMS, and mobile data, emergency home broadband data quotas, and complimentary access to select Dialog Television channels. This support enabled individuals, families, and communities in affected areas to maintain essential communication and access timely information when it was most critical.

This commitment builds on Dialog’s long-standing role in supporting national recovery during times of crisis. Following major landslides and floods in 2016-2017, Dialog implemented the Senehe Siyapatha initiative, under which villages in Aranayake, Kotapola and Ehaliyagoda were built to support families displaced by natural disasters. In 2019, in response to the Easter Sunday attacks, Dialog established the Rally to Care fund to provide long-term educational and psychosocial support to affected children and families. During the COVID-19 pandemic (2020-2021), Dialog contributed to strengthening Sri Lanka’s healthcare response through the establishment of fully equipped Intensive Care Units at Negombo and Homagama hospitals.

More recently, during the 2022 economic crisis, Dialog supported the development and nationwide rollout of the National Fuel Pass system, a Government-recognised initiative that enabled allocation-based fuel distribution and continues to be supported free of charge in collaboration with relevant authorities. Amid the same period, Dialog also initiated Manudham Mehewera, a nationwide food security initiative supporting vulnerable families across the country.