Category: Daily Financial Times

The Government has commenced the first phase of relief assistance to industries affected by Cyclone Ditwah, with the Ministry of Industry and Entrepreneurship Development initiating a recovery program to restore industrial activity disrupted by the severe weather conditions and nationwide impact of the disaster.

As an initial stabilisation measure, a one-time financial grant of Rs. 200,000 per industrial unit has been authorised to support the revival of affected businesses.

In this phase, a total of Rs. 106.2 million has been released to assist 531 registered industrialists identified and confirmed at the divisional secretariat level. The funds have been dispatched to the district secretariats of Gampaha, Colombo, Mannar, Batticaloa, Ampara, Trincomalee, Kegalle, Monaragala, Badulla, Polonnaruwa, Ratnapura, and Anuradhapura, for immediate distribution.

The relief program follows a data collection exercise carried out by the Ministry of Industry and Entrepreneurship Development, which identified nearly 10,000 industrialists across the island who suffered full or partial damage during the cyclone.

The Ministry said its objective is to ensure the stability and continuity of the country’s industrial sector, adding that several projects are already underway to uplift those affected by the natural disaster.

Beyond immediate financial assistance, the Ministry is developing a long-term mechanism aimed at building a robust industrial sector with the capacity to withstand future natural calamities, contributing to a more resilient economic landscape.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday said Sri Lanka has not yet fully assessed the overall economic impact of Cyclone Ditwah, stressing that the damage estimates released so far are based only on an initial assessment and that a comprehensive evaluation would take at least another four weeks.

Responding to queries at the post-Cabinet meeting media briefing, Dr. Jayatissa noted that the recent findings released by the World Bank reflect a rapid, preliminary assessment carried out soon after the disaster, and should not be interpreted as the final cost to the economy.

He pointed out that the true economic impact would likely be much higher once indirect losses and longer-term recovery needs are taken into account.

According to the World Bank’s Global Rapid Post-Disaster Damage Estimation (GRADE) report released on Monday, Cyclone Ditwah has caused an estimated $ 4.1 billion in direct physical damage, around Rs. 1.3 trillion equivalent to roughly 4% of Sri Lanka’s gross domestic product. The damage spans buildings, agriculture and critical infrastructure across the country, marking one of the most destructive climate events in Sri Lanka’s recent history.

The cyclone has affected nearly two million people and around 500,000 families across all 25 districts, severely disrupting livelihoods, public services and economic activity countrywide. The World Bank noted that the estimate accounts only for direct physical damage to assets and does not include income losses, business interruptions or the full cost of recovery and reconstruction.

The report also excludes future-oriented investments aimed at ‘building back better,’ which are often required to enhance resilience against increasingly frequent and severe climate-related disasters. As a result, total recovery and reconstruction needs are expected to be significantly higher than the current headline figure.

The GRADE assessment, which relies on rapid, remote and model-based analysis, is intended to provide timely insights to guide immediate emergency response and early recovery planning, as well as to inform longer-term disaster risk reduction strategies.

However, Dr. Jayatissa reiterated that a more detailed, ground-level assessment was essential to accurately quantify the broader economic shock and to shape fiscal, financial and policy responses in the weeks ahead.

He said the Government would continue to work with the World Bank and other international partners and relevant institutions to complete a comprehensive damage and needs assessment, which would form the basis for mobilising resources and designing recovery programs aimed at restoring economic stability and protecting vulnerable communities.

The Embassy of Sri Lanka in Riyadh hosted a special briefing session on the revival of Sri Lanka tourism industry, titled, ‘Sri Lanka is Ready’ for the leading travel agents, tour operators and airlines in the Kingdom of Saudi Arabia to brief the current status of Sri Lanka’s tourism sector in the aftermath of Cyclone Ditwah.

The event was held on 11 December 2025 at the Embassy premises in Riyadh. The event brought together more than 50 participants including representatives from major travel companies and key stakeholders in the Saudi travel market.

Ambassador of Sri Lanka to the Kingdom of Saudi Arabia, Ameer Ajwad, provided a detailed briefing on the current situation in the country and the swift measures taken by the Sri Lankan Government to ensure the safety and comfort of all visitors. He reaffirmed that Sri Lanka’s tourism industry remains strong, with all major attractions, hotels, transport networks, and services fully operational. The Ambassador invited tour operators to share this positive message with Saudi travellers, encouraging them to explore Sri Lanka’s rich cultural heritage, pristine beaches, scenic landscapes, and renowned warm hospitality. He further emphasised that the country is committed to providing a secure and memorable experience to all tourists during the upcoming holiday seasons.

The ‘Sri Lanka Is Ready’ event also featured testimonial videos from tourists who visited Sri Lanka in the aftermath of Cyclone Ditwah, showcasing authentic experiences that underscored the country’s safe and welcoming environment. In the first week of December 43976 visitors have arrived in Sri Lanka. This marks an increase from the 41191 arrivals recorded during the same period in 2024. A strong symbol of renewed confidence in Sri Lanka’s tourism sector was the recent arrival of the luxury cruise ship ‘Mein Schiff 6’, carrying over 2,000 passengers. Their excursions across Colombo, Galle, Madu Oya, and Kalutara affirm that Sri Lanka is fully ready and safe to welcome visitors from all corners of the world.

The event concluded with renewed confidence among travel partners, strengthening collaborative efforts to promote Sri Lanka as a preferred destination for Saudi travellers.

Bank of Ceylon’s inaugural Basel III-compliant Tier II Listed Sustainability Bond issue, the largest sustainability bond issuance ever undertaken in Sri Lanka, was oversubscribed and closed on the opening day, 22 December. The issue was the maiden sustainability bond launched by a state-owned bank.

BOC Chairman Kavinda de Zoysa said: ‘With a legacy of trust and a vision for the future, BOC is a nation-building institution, committed to powering Sri Lanka’s path toward economic revival, self-sufficiency, and global competitiveness. This landmark issuance, the largest sustainability bond issuance in Sri Lanka’s financial market to date, represents a transformative chapter in BOC’s history. We are deeply grateful for the enthusiastic participation of our investors in our sustainability journey to support a stronger and more resilient nation.’

The successful issuance comes at a time when sustainable finance has assumed growing importance in economic recovery strategies worldwide. Across both developing and advanced economies, sustainability bonds have become a key channel for directing long-term capital toward productive investment amid tighter fiscal conditions, rising climate risks, and the need to restore growth. For Sri Lanka, rebuilding after a severe economic crisis and repeated climate disruptions, this form of financing carries particular relevance.

Global issuance of green, social, and sustainability bonds has expanded steadily over the past decade. Data from the Climate Bonds Initiative show that annual labelled Bond issuance has exceeded one trillion dollars in recent years, reflecting strong investor appetite for instruments linked to environmental resilience and social development.

Acting General Manager/Chief Executive Officer Y.A. Jayathilaka said: ‘This issuance is a significant milestone for BOC, as it was structured entirely in-house. Our Sustainable Finance Framework was developed by the Sustainable Banking Division while the issuance was structured by the Investment Banking Division with support from the Legal Division. The Colombo Stock Exchange (CSE) provided valuable guidance throughout the process and facilitated engagement with the Asian Development Bank (ADB) who extended technical assistance in developing the Sustainable Finance Framework, in addition to supporting the listing process. KPMG served as the Independent External Reviewer and People’s Bank acted as the Trustee to the Issue. The bonds were rated ‘AA-‘ (Stable) by Lanka Rating Agency Ltd. We extend our sincere appreciation to all stakeholders who partnered with us in advancing BOC’s sustainability journey.’

Sri Lanka’s recent economic crisis significantly reduced public investment capacity and constrained private sector activity. Fiscal consolidation remains a priority, limiting the scope for large-scale state-led spending. At the same time, climate vulnerability has intensified. Extreme weather events, including Cyclone Ditwah, disrupted agriculture, damaged infrastructure, and affected livelihoods, particularly in rural and flood-prone areas. Recovery therefore requires financing that strengthens resilience while supporting growth.

In this context, sustainability bonds offer a targeted financing channel aligned with national development priorities. Proceeds from the bank’s issuance will be allocated to clearly defined environmental and social projects under its Sustainable Finance Framework, supported by ongoing reporting and independent review. This structure enhances transparency and ensures that funds are directed toward long-term development outcomes.

Issued in alignment with international principles and Sri Lanka’s Green Finance Taxonomy, the bond is designed to expand lending to eligible green and social projects across the economy. These include renewable energy, energy efficiency, sustainable water and waste management, as well as social sectors such as agriculture, MSME financing, healthcare, education, and basic infrastructure.

Deputy General Manager – International, Treasury and Investment G.A. Jayashantha, who led the execution of the strategy said: ‘BOC is a Corporate Finance Advisor licensed by the Securities and Exchange Commission of Sri Lanka. This Sustainability Bond issuance was exclusively structured and managed by our investment banking team who possess a wealth of expertise in structuring innovative capital market instruments. We have structured Tier I as well as Tier II capital instruments for the Bank and have raised capital in excess of Rs. 120 billion. Proceeds raised from this Basel III compliant Sustainability Bond will further strengthen the Tier 2 capital of the bank. This was the second debt issue structured by our team this year as we successfully raised Rs. 15 billion. by issuing a Basel III listed debenture in May 2025.’

The issuance builds on a period of strong financial performance by the Bank. BOC recorded a profit before tax of Rs. 106.9 billion in 2024 and Rs. 87.7 billion during the first nine months of 2025. The bank was ranked as the leading Sri Lankan bank among the Top 1000 World Banks by The Banker magazine in 2025 as well, published by the Financial Times Group. It was also named The Most Valuable Brand in Sri Lanka by Brand Finance Lanka, with a brand value of Rs. 57.4 billion.

Fitch Ratings has affirmed the Bank’s National Long-Term Rating at ‘AA-(lka)’ and its Long-Term Foreign and Local Currency Issuer Default Ratings at ‘CCC+’.

The bank’s Investment Banking Division offers a comprehensive suite of services that extend beyond traditional banking, including financial advisory for listed and unlisted debt issues such as debentures, perpetual Bonds, green, social, and Sustainability Bonds, as well as securitisations, corporate restructuring, and equity transactions.

Over the years, the Investment Banking Division has raised more than Rs. 120 billion through listed and unlisted debt instruments for the Bank. The Division also provides underwriting services for initial public offerings (IPOs) and supports financing for large infrastructure and development projects.

Bank of Ceylon is a Professional Clearing Member of the Colombo Stock Exchange (CSE) and provides trustee and custodian services for unit trust funds and corporate clients, with funds exceeding Rs. 500 billion.

BOC is an Investment Manager licensed by the Securities and Exchange Commission of Sri Lanka and the Division operates a dedicated business unit for wealth management clients.

Fitch Ratings has assigned a ‘neutral’ sector outlook for APAC corporates in 2026, reflecting its expectation that credit metrics will improve mildly across our portfolio of rated entities, with key credit drivers remaining generally stable in most sectors and markets.

‘Geopolitics, further tariff developments, and supply-chain fragility will pose notable risks that could derail our projections for a recovery in credit metrics,’ Fitch said.

It expects easing input costs to lift aggregate EBITDA margins slightly among our rated APAC corporates, to over 15% from around 14.5% in 2025, with free cash flow also improving marginally, despite uneven economic growth across the region.

Escalating US-China tensions, export controls and policy shifts may raise costs, fragment ecosystems and drive ‘China+1’/near-shoring, potentially lifting end-market prices and creating uneven access to advanced equipment.

‘We expect companies will continue to diversify and localise production to mitigate disruption risks. China’s excess capacity in certain products could also intensify competition on other markets through exports,’ Fitch said.

Persistent weakness in China’s property market and softer infrastructure investment will weigh further on construction activity and aggregate credit metrics in related sectors. China’s growth model is moving away from property and traditional infrastructure, pressuring construction companies’ performance and financial profiles.

Fitch also said the ‘deteriorating’ outlook on APAC technology reflects exposure to consumer electronics products, which are exposed to sustained global consumer weakness, and the potential for higher US tariffs to affect demand. However, products linked to AI demand will continue to benefit. ‘We have also maintained a ‘deteriorating’ outlook on automotive, chemicals and shipping because of their exposure to unfavourable trade policies in 2026, and because structural headwinds leave them exposed to earnings pressure,’ Fitch added.

The ICC yesterday announced a major multi-year global partnership with Hyundai Motor Company, welcoming the global automotive manufacturer as a Premier Partner for upcoming ICC events.

Hyundai becomes one of only four Premier Partners within the ICC’s top-tier commercial partnerships program, completing the category ahead of the ICC Men’s T20 World Cup 2026, which will be hosted by India and Sri Lanka from 7 February.

As a Premier Partner, Hyundai will receive exclusive worldwide rights across the ICC’s international events calendar, including association with key match day moments such as the coin toss.

The collaboration reflects the ICC’s continued focus on partnering with leading global brands to enhance fan engagement and strengthen cricket’s connection with audiences worldwide. Through the partnership, the ICC and Hyundai will work together on innovative initiatives, including venue-based activations and fan-focused experiences designed to elevate engagement at ICC events.

The announcement comes less than two weeks after the ICC announced a global tier two agreement with AB InBev, whilst at that level, the ICC has also welcomed Sobha Realty, Unilever, and Google into its prestigious partnerships portfolio in 2025.

Speaking on the partnership, ICC Chairman Jay Shah said, ‘We welcome Hyundai as a Premier Partner and look forward to delivering outstanding events together. Hyundai is a global brand that has long supported sports, and we look forward to maximising our combined strengths at these events.’

ICC CEO Sanjog Gupta said, ‘We are proud to welcome Hyundai to the ICC’s global commercial program as a worldwide partner. The collaboration between ICC and Hyundai will strive to grow global cricketing culture with shared values of inclusivity, innovation and progress at the heart of our ambition.’

Hyundai Motor Company President and CEO José Muñoz commented: ‘Cricket and Hyundai share a relentless drive to improve and the resilience to rise to every challenge. We are honoured to partner with the ICC and connect with over two billion passionate fans worldwide.’

Hyundai Motor India Ltd. Managing Director and CEO Designate Tarun Garg said: ‘This partnership reflects Hyundai’s strong commitment to India and growing importance of India market in Hyundai’s global operations.’

Snow has blanketed several regions across Saudi Arabia for the first time in 30 years, transforming the desert-framed mountains into a striking winter wonderland as inclement weather made its presence felt.

A cold air mass brought rain and powerful winds, turning higher northern elevations into a snowy landscape. Near Tabuk, in areas like Jabal Al Lawz and the Trojena highlands, temperatures dropped to around -4°C, allowing snow to settle at altitudes near 2,600 metres.

Local TV channels called it a historic event. Social media photos show mountains turn white with snow.

As the snow fell in areas like Tabuk and Hail, the residents stepped out to ski and enjoy the icy scenes.

The rare event has sparked excitement and disbelief among residents who have shared videos and photos of the kingdom blanketed in white.

Snowfall transformed parts of the country into an unexpected winter playground.

A video shared on X captured an unusual scene of a group of camels standing in desert area covered in snow, with dark clouds looming overhead, has gone viral.

Another video showed adults enjoying skiing in the snow, celebrating and capturing a scene rarely seen in the Kingdom.

The cold wave was also accompanied by widespread rainfall across several regions. (Gulf Today)

Marking the first-ever focused initiative to promote Sri Lanka’s construction services in the Indian market, a sector-specific business delegation visited Mumbai from 25-28 November 2025. This initiative was organised by Sri Lanka Export Development Board (EDB) in collaboration with the Sri Lanka Consulate General in Mumbai.

Ten leading Sri Lankan companies representing civil construction, engineering services, interior design, consultancy, and property development participated in the program. The participating companies were Synex Holdings Ltd., Rhino Roofing Products Ltd, St. Anthony’s Interior Solutions Ltd., SBA Consultant Ltd., Colombo Consultants and Management Group, BMIS Company, Amoda Rathnayake Associates Ltd., MOVA Ltd., Good Gift Property Developers Ltd., and K.R.S. Sankarans Engineers and Construction.

Beginning with a B2B networking session at the Sri Lanka Consulate General in Mumbai which alone attracted around 100 Indian companies, the delegation engaged in a series of high-level business meetings and networking sessions with leading Indian Industry institutions. These included India Chamber of International Business (ICIB), India Merchants’ Chamber (IMC), World Trade Center (WTC), Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA), Somaiya University, Godrej Enterprises Group and Studio SSJ. The delegation also visited Design Mumbai, an international contemporary design show, and attended the IGBC Green Building Congress and Exhibition 2025.

Approximately 350 engagements during the visit served as a platform to explore new business partnerships, joint ventures, subcontracting opportunities, new business contacts and access to green technologies and advanced design solutions, providing impetus to bilateral cooperation in the construction services sector. All participated companies have already secured business collaborations with Indian business partners. In response to their requests, the EDB looks forward to organise more structured business matchmaking sessions and promotional events to connect Sri Lankan service sector companies with global markets, including different regions of India and other potential markets.

Indian External Affairs Minister Dr. S. Jaishankar met Opposition Leader Sajith Premadasa yesterday, and emphasised the importance of ensuring transparency in the utilisation of Indian assistance extended for disaster relief.

According to the Office of the Leader of the Opposition, Premadasa assured that the Opposition would play its role in safeguarding transparency in the use of the support.

Premadasa also conveyed his appreciation to the Indian Government for the $ 450 million provided as disaster assistance.

Visiting Indian External Affairs Minister Dr. S. Jaishankar yesterday met Prime Minister Harini Amarasuriya at Temple Trees in Colombo.

Dr. Jaishankar is in Sri Lanka as the Special Envoy of Indian Prime Minister Narendra Modi. The meeting took place during his official visit to engage Sri Lanka’s senior leadership as the country begins reconstruction following the destruction caused by Cyclone Ditwah.

During discussions, Dr. Jaishankar reiterated India’s willingness to support Sri Lanka’s recovery efforts, including assistance for rebuilding railways and bridges and strengthening the agricultural sector. He also stressed the importance of effective disaster-response systems underpinned by strong legislative, administrative and institutional frameworks.

According to a statement from the Prime Minister’s Office, the two sides reviewed ongoing relief measures and discussed ways to deepen bilateral cooperation in disaster response and recovery.

Prime Minister Amarasuriya expressed appreciation for India’s continued assistance, noting that post-Ditwah recovery extends beyond immediate relief to longer-term priorities such as resettlement and the reconstruction of housing and infrastructure. She said steps have been taken to reopen schools as part of restoring normalcy, with close monitoring in place.

The Prime Minister also underscored the need to ensure stability, reduce vulnerability and strengthen protection mechanisms, while highlighting public solidarity, volunteerism and collective action shown during the emergency.

The meeting was attended by Indian High Commissioner to Sri Lanka Santosh Jha, Additional Secretary (IOR) at India’s Ministry of External Affairs Puneet Agrawal, Joint Secretary (EAMO) Sandeep Kumar Bayyapu, and Deputy High Commissioner Satyanjal Pandey.

The Sri Lankan delegation included Secretary to the Prime Minister Pradeep Saputhanthri, Additional Secretary Sagarika Bogahawatta, Director General (South Asia) at the Ministry of Foreign Affairs Samantha Pathirana, and Deputy Director, South Asia Division Diana Perera.