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Digital Economy Deputy Minister Eng. Eranga Weeraratne yesterday unveiled Sri Lanka’s ambitious AI vision at the first-ever National AI Expo and Conference 2025, urging private sector investors to partner with local innovators to build a globally competitive digital economy.

Speaking at the two-day conference spearheaded by the Digital Economy Ministry in collaboration with SLT-Mobitel, he said the event is being positioned not merely as a showcase, but as a launchpad, ushering in what the Government hopes will be a smarter, more ethical, inclusive and secure change.

‘We are not just here to showcase technology, but to mark the beginning of a new chapter,’ Eng. Weeraratne said.

Calling on the private sector and investors, he emphasised the economic potential of AI. ‘The future of your industries is sitting right here in this room. Partner with these bright minds, invest in their ideas, and let’s create a globally competitive AI industry together, right here in Sri Lanka,’ he added.

To ensure this transformation, the Deputy Minister outlined a four-pillar national strategy; building human capital, fostering innovation ecosystems, ensuring inclusivity, and promoting safe and ethical AI use.

‘Our biggest asset is our people. We will integrate digital literacy and data education into the national curriculum and launch large-scale skilling programs to create a future-ready workforce,’ he stressed.

He revealed that the Government will launch a dedicated startup funding program in January 2026 to back research and bold experimentation.

‘Sometimes the biggest breakthroughs come from the boldest experiments. That is why we are going to launch a fund to encourage and invest in Sri Lankan startups. This is non-negotiable if we want to compete globally,’ he asserted.

The Deputy Minister also outlined a national strategy to integrate the technology across industries, education, and everyday life, positioning Sri Lanka as a hub for globally competitive, people-centred digital transformation.

Inclusivity, he said, would be central to Sri Lanka’s AI journey. ‘No one gets left behind. This technology must work for the shop owner in Jaffna as much as for the CEO in Colombo. It must speak our languages and solve our local challenges,’ he added.

Eng. Weeraratne also acknowledged the risks and challenges posed by AI. ‘We cannot ignore how AI can be used to spread disinformation, run sophisticated scams, or attack our infrastructure. That is why we have established a National Cybersecurity Coordination Centre and will soon launch a dedicated Defence Cybersecurity Operations Centre, both leveraging AI to protect our nation from such threats,’ he said.

Addressing innovators, students, academics, industry leaders, policymakers, diplomats and investors, the Deputy Minister compared AI’s transformative impact to electricity.

‘The best way to understand AI is as the new electricity. Just like electricity revolutionised industry, AI is now becoming the foundation of technology, changing how we work, live, and grow,’ he added.

Eng. Weeraratne painted a vivid picture of AI’s practical applications in Sri Lanka.

‘Imagine a doctor in a small clinic in Anuradhapura who can instantly access expert diagnosis from Colombo, or farmers receiving precise predictive data on weather and soil conditions to safeguard their crops,’ he explained.

‘For our globally renowned hospitality sector, AI could personalise visitor experiences; helping tourists avoid the midday heat, find hidden gems, or discover the best home-cooked rice and curry in a village restaurant. These are not futuristic fantasies. They are real, practical changes that will uplift our people,’ he added.

His final message was directed at the youth. ‘Students, you are the next generation that will define this new era. Be curious, never stop learning and get ready to build futures we can all be proud of. With great tools come great responsibilities, use them wisely, ethically and for the benefit of all Sri Lankans and the world,’ Eng. Weeraratne said. (CdeS)

The Sri Lanka-USA Business Council of the Ceylon Chamber of Commerce – focusing on strengthening bilateral trade, investment, and business ties between Sri Lanka and the United States, recently hosted a timely webinar on the evolving US tariff regime and its implications for Sri Lankan exporters. The session brought together trade experts and industry leaders to examine how Sri Lanka can navigate risks, leverage short-term opportunities, and prepare for long-term competitiveness.

Delivering the welcome note, the Sri Lanka-USA Business Council President and also the Group Chief Financial Officer of MAC Holdings, Tilak Gunawardena, stressed the importance of understanding the shifting US trade environment. ‘As global trade regulations continue to evolve, understanding US tariff policy is vital for Sri Lankan businesses seeking to grow and sustain their presence in the US market,’ he said. He reaffirmed the Council’s commitment to supporting the wider business community with timely, relevant, and actionable insights.

Setting the stage, Advocata Chief Executive Officer Dhananath Fernando explained that the discussion would focus on how US tariffs are reshaping global trade, the risks Sri Lanka faces, and the opportunities that may arise from this changing environment.

The discussion opened with Deloitte India Executive Director Vijay Chauhan, with over 30 years of experience on public policy, trade facilitation, customs and indirect tax administration. He provided a breakdown of how the US is applying tariffs through domestic laws such as the International Emergency Economic Powers Act (IEEPA), Section 232 (national-security tariffs on steel, autos, etc.), and Section 301 (actions mainly targeting China). Vijay noted that while these tariffs are being challenged in the US courts, they currently remain in force, however he advised exporters to maintain meticulous documentation and remain in close contact with US counterparts in case refund opportunities arise in future.

Lanka’s tariff rate has fallen to 20%

Turning to the industry perspective with Yohan Lawrence, a key voice in the apparel sector, the Chairman of the Exporters Association of Sri Lanka and the Secretary General of the Joint Apparel Association Forum (JAAF). He observed that Sri Lanka’s tariff rate has fallen to 20%, now in parity with competitors like Bangladesh, Cambodia, and Vietnam. Therefore, apparel orders have not shifted significantly. Further, as many buyers expect India’s current 50% tariff to be temporary, they’re hesitant to shift supply chains to Sri Lanka. He cautioned that the real concern would be that the higher tariffs could drive inflation in the US and reduce consumer demand, forcing global brands to push suppliers – including Sri Lanka – to cut prices, with potential consequences for export revenues and jobs. However, to cushion the impact of the US pressures, he noted that the UK’s new trade scheme could offer Sri Lanka some relief and opportunities.

Adding a broader economic lens, Shiran Fernando, Chief Economist of the Ceylon Chamber of Commerce leading the Chamber’s Economic Research and policy advocacy initiatives, explained that fears of a major export slump have not materialised. In fact, most Asia-Pacific countries, including Sri Lanka, reported export growth in the first half of the year. Yet Sri Lanka’s growth was slower than peers such as Vietnam and Thailand, which have benefited from electronics demand driven by the global AI boom. Meanwhile, US imports from China are falling but China has rerouted to ASEAN, the EU, and Latin America, intensifying competition for Sri Lankan exporters.

Speaking on compliance requirements that Sri Lankan exporters should exercise caution on, Vijay highlighted three key aspects; accurate HS classification – to avoid overpaying duties; valuation strategies – including the legal use of the ‘first sale’ rule (provided transfer pricing rules are respected) and rules of origin – where only genuine value addition qualifies products as Sri Lankan. He stressed that missteps here can lead to severe penalties.

However, Vijay also noted an opportunity: Indian firms may look to partner with Sri Lankan companies for further processing before exporting to the US under Sri Lanka’s lower 20% tariff – granted rules of origin and compliance are carefully followed.

Non-tariff barriers may prove more critical than tariffs

Both Yohan and Shiran emphasised that non-tariff barriers may prove more critical than tariffs themselves. While Sri Lanka’s apparel exports face few non-tariff barriers in the US, Sri Lanka imposes many on its own imports. Shiran noted that, since Sri Lanka operates under a Trade and Investment Framework Agreement (TIFA) with the US rather than a full FTA, these non-tariff measures often create friction in trade discussions. He also pointed out that the country’s tariff structure remains ‘convoluted,’ with para-tariffs that further complicate negotiations. However, under the IMF program, Sri Lanka is expected to gradually simplify these structures – a move both panellists stressed is essential.

The panel also discussed sectoral exposure of the tariffs as two-thirds of Sri Lanka’s exports to the US are apparel, followed by around $ 300 million in rubber products and smaller contributions from tea and other sectors. While the reduction of tariffs to 20% has provided relief, this advantage is fragile. Both Lawrence and Fernando warned that tariffs are a ‘moving target’ and could rise again if Sri Lanka mishandles trade policy, as seen with India.

The audience also directed a question on how Sri Lanka compares with Vietnam, to which Lawrence noted that while both countries now face the same 20% tariff, Vietnam enjoys an edge due to its stronger domestic fabric base, while Sri Lanka relies heavily on inputs from China. If stricter ‘rules of origin’ are enforced, this gap could widen.

In terms of global positioning, Vijay stressed that current tariff arbitrage is a short-term window of opportunity. Over the long term, as tariffs are expected to stabilise between 10-20%, Sri Lanka must strengthen its comparative advantage through productivity, efficiency, and greater market access to other countries.

He pointed to FTAs as a key tool for accessing new markets but urged that future agreements should focus more on addressing the non-tariff barriers than just tariff measures.

Sri Lanka’s future depends both on the US Supreme Court’s eventual ruling on tariffs and on domestic reforms. Even if tariff advantages persist in the short term, lasting gains will come only through deeper reforms, greater efficiency, and stronger trade agreements

Conflicts between customs valuation and transfer pricing rules will always exist

In response to a question on transfer pricing risks with the US, Vijay cautioned that conflicts between customs valuation and transfer pricing rules will always exist. He noted that while lower tariffs previously meant valuations were largely shaped by transfer pricing, companies must now balance both regimes carefully. Any attempt to reduce customs values, he stressed, should be checked for consistency with transfer pricing rules to avoid penalties.

Fernando provided relevant insights on Sri Lanka’s currency outlook. While the rupee appears stable against the US dollar, domestic pressures – higher imports, weaker tourism inflows, and the Central Bank’s progress on the reserve build-up – suggest gradual depreciation. He clarified that Sri Lanka is not ‘manipulating’ its currency, as alleged in past US debates, but remains vulnerable to external shocks. To build resilience, he argued, Sri Lanka must push ahead with ‘second-generation reforms’ such as tariff simplification, trade facilitation, digitised customs, stronger FTA negotiation capacity, and labour market reforms.

Finally, Lawrence highlighted sustainability as Sri Lanka’s long-term differentiator. While price remains the main driver in the US market, brands continue to demand ethical and sustainable practices. With the EU and UK tightening compliance requirements, Sri Lanka’s reputation for sustainable manufacturing can provide a lasting competitive edge – even if buyers are reluctant to pay extra for it in the short term.

Summing up, Dhananath noted that Sri Lanka’s future depends both on the US Supreme Court’s eventual ruling on tariffs and on domestic reforms. Even if tariff advantages persist in the short term, lasting gains will come only through deeper reforms, greater efficiency, and stronger trade agreements. The panel agreed that while tariffs will remain important, non-tariff barriers, compliance, and competitiveness reforms will ultimately shape Sri Lanka’s success in global markets.

Pan Asia Bank has partnered with Senok Trade Combine Ltd., a diversified conglomerate with business interests across automobiles, construction, renewable energy, and trading. This collaboration marks a significant milestone in aligning financial services with industry leadership to deliver greater value to Sri Lankan businesses and consumers alike.

Through this partnership, Pan Asia Bank will extend its financial expertise to complement Senok’s extensive operations, creating new opportunities for growth across multiple sectors. Customers of Senok will gain access to specially designed financing packages, including flexible leasing options, trade finance solutions, and tailor-made credit facilities that will make it easier to invest in vehicles, equipment, and other business needs. The partnership is particularly significant for the automobile and construction sectors, where Senok has long held a leadership position, as it allows Pan Asia Bank to provide innovative banking solutions that directly support sectoral growth.

A key highlight of this collaboration is the opportunity for customers to experience some of Senok’s flagship automobiles, including the Haval Jolion, a state-of-the-art SUV; the View CS2, and the Tunland G7. With Pan Asia Bank’s innovative leasing solutions, these vehicles are now more accessible, empowering customers to drive their aspirations forward.

Pan Asia Bank Director/CEO Naleen Edirisinghe emphasised the bank’s vision for meaningful partnerships: ‘At Pan Asia Bank, we believe in forging alliances that go beyond conventional business ties. This partnership with Senok brings together financial innovation and industry expertise in a way that empowers businesses, fuels customer aspirations, and contributes to national economic growth.’

The MoU between Pan Asia Bank and Senok Trade Combine is not just a formal agreement, but a strategic step towards fostering long-term growth, innovation, and sustainability across industries. Together, the two organisations are well-positioned to support business expansion, generate employment opportunities, and create shared value for communities and stakeholders across the country.

The International Chamber of Commerce Sri Lanka (ICCSL) has urged the Government to adopt reforms to strengthen awareness and compliance under the Taxpayer Charter.

In a policy paper handed to the Department of Fiscal Policy, the ICCSL set out proposals to close gaps in taxpayer knowledge and trust identified through a national survey.

Key recommendations include comprehensive education programs using digital platforms, community outreach and workshops, as well as tailored communication frameworks that simplify tax obligations for the public while offering detailed guidance for professionals.

The paper also calls for stronger data privacy protections, including cybersecurity measures, and the establishment of a Charter Monitoring Unit within the Inland Revenue Department to evaluate communication tools, feedback mechanisms and revisions of the Charter.

ICCSL Chairman Shanil Fernando said: ‘This paper reflects the collective voice of taxpayers and the need for greater clarity, balance, and trust in our tax system.’ He added that the chamber remains committed to further research on effective tax practices to support Sri Lanka’s economic growth.

Accepting the paper, Department of Fiscal Policy Director General Dr. Kapila Senanayake said: ‘These are timely, practical, and necessary reforms that deserve immediate attention.’ He added that several recommendations would be seriously considered for inclusion in the upcoming budget.

People’s Bank has partnered with Toyota Lanka Ltd., to launch an exclusive Auto Loan Facility, providing Sri Lankans with an enhanced opportunity to realise their dream of vehicle ownership.

The Memorandum of Understanding (MoU) for this partnership was signed recently at Toyota Plaza, Wattala. The event was attended by People’s Bank Chief Executive Officer/General Manager Clive Fonseka, Deputy General Manager – SME Development and Micro Finance Wickrama Narayana, Deputy General Manager – Retail Banking and Overseas Customer Services Aruni Liyanagunawardana, along with other officials. Representing Toyota Lanka were Head/Project Manager – Value Chain and Mobility Solutions Naotaka Takeda, Chief Operating Officer Mathisha Samaranayake, Chief Financial Officer Gayan Karunarathne, Chief Human Resource Officer Demetrious Perera, General Manager – Sales Ravi Opatha, General Manager – Auto Value Enhancement Vipul Bandara, and Deputy Manager – Core Marketing Division Suren De Silva.

This initiative introduces a dedicated loan facility for the purchase of brand-new vehicles, representing a significant step forward in both retail banking and automobile financing.

For many Sri Lankans, buying a vehicle is a lifelong aspiration. People’s Bank Auto Loan offers a customer-focused financing solution that extends beyond conventional facilities, providing unmatched flexibility and long-term value. With a range of repayment options available, customers can benefit from a monthly instalment as low as Rs. 1,499 per Rs. 100,000 for a five-year tenure, with up to 30% capital deferment. After five years, the deferred amount can be either settled in full or converted into a new loan, providing greater financial flexibility.

The People’s Auto Loan provides greater value than other traditional financing methods, offering highly competitive interest rates, no early settlement fees, and exclusive discounts on Letter of Credit (LC) openings for vehicle imports. Moreover, this facility enables customers to gain full ownership while enjoying a seamless and affordable path to owning either a brand-new or a pre-owned vehicle.

Toyota Lanka, the sole authorised distributor for Toyota vehicles in Sri Lanka, is renowned for its quality, safety, and innovation. Through this collaboration, customers benefit from the combined credibility of two trusted brands-People’s Bank’s financial expertise and Toyota’s global reputation for excellence.

Together, the two organisations are set to transform auto financing in Sri Lanka, making the aspiration of driving a brand-new Toyota a reality for many.

President Anura Kumara Disanayake yesterday enticed Japanese companies to invest in stable and high-potential Sri Lanka in a bid to tap the giant South Asian market.

He had a closed-door meeting in Tokyo with several top Japanese companies, and later addressed a packed open Business Forum on the sidelines of his State visit, pushing for greater bilateral ties.

At the open forum, the President listed economic and political stability, transparent, corruption-free, and good governance, and strategic geographic location among key reasons for Japanese firms to locate in Sri Lanka and tap the giant South Asian market with 2.5 billion people.

He also described Sri Lanka as one of the most stable democracies in the region and, given the country’s competitive and comparative advantages, including a skilled talent pool and Free Trade Agreements (FTAs), Sri Lanka was ideal for Japanese companies keen to diversify supply chain options.

‘Sri Lanka can be your strategic partner to enter South Asia,’ the President told Japanese investors gathered at the headquarters of the Japan External Trade Organisation (JETRO).

Disanayake said that his Government was favourable to the idea of a dedicated Industrial Zone for Japanese manufacturers, and also assured that an Investor Protection Bill will be presented to Parliament to enhance the conducive environment.

Having briefly highlighted some of the salient achievements since he took office as President, Disanayake said Sri Lanka is poised to achieve higher sustainable socio-economic growth via progressive policies.

‘By 2027, our economy will be worth $ 107 billion, which is 20% above the baseline projection made by the International Monetary Fund (IMF),’ Disanayake said, adding that logistics, financial services, manufacturing, and technology are some of the high-potential sectors for Japanese companies.

Speaking at the forum soon after meeting Japanese Prime Minister Shigeru Ishiba, Disanayake acknowledged that Japan has been a strong development partner for Sri Lanka, and with stability and good governance back in Sri Lanka, bilateral ties can be elevated to a new high.

Representing the Japanese Government at the forum, Japanese Economy, Trade and Industry State Minister Dr. Ogushi Masaki referred to his country’s proposal to set up an export-oriented industrial corridor for Japanese firms to tap the Indian market via Sri Lanka. He said the move is mutually beneficial to all the countries in South Asia.

The forum was organised by the JETRO, Ministry of Economy, Trade and Industry (METI), Sri Lanka Embassy in Japan, the Japan-Sri Lanka Business Cooperation Committee, and the Board of Investment (BOI). It was supported by the Japan International Cooperation Agency (JICA).

Others who spoke at the forum were JETRO Chairman and CEO Ishiguro Norihiko, Japan-Sri Lanka Business Cooperation Committee Chairman Kobayashi Fumihiko, President’s Chief Adviser on Digital Economy Dr. Hans Wijayasuriya, METI Director for Southwest Asia Region – Trade Policy Bureau Shimano Toshiyuki, Ito Spring Co., CEO Kawashima Miwako, Tos Lanka Factory Manager Tanaka Nobuyuki, BOI Assistant Director – Desk Officer for Japan Arunya De Silva and The Ceylon Chamber of Commerce (CCC) Chairperson Krishan Balendra.

The forum in Tokyo was the final event under the public-private sector joint initiative to boost greater economic and business cooperation between Sri Lanka and Japan, buttressing the State visit by President Disanayake. Prior to Tokyo, a similar business forum was held in Osaka apart from President Disanayake officiating at the Sri Lanka Day at Expo 2025 in Osaka.

The private sector delegation was led by the Sri Lanka-Japan Business Council (SLJBC) under the aegis of The CCC. The delegation of over 20 personnel/companies has interests in manufacturing, exports, services, tourism, logistics, and IT.

The delegation was led by The CCC and John Keells Holdings Chairperson Krishan Balendra, and comprised SLJBC Vice President and Spear International Ltd., Chairman and Managing Director Shamil Mendis; SLJBC Treasurer and MendisOne Chairman Rohitha Mendis; SLJBC Immediate Past President and Andrew the Travel Company Managing Director Mahen Kariyawasan; BOV Capital Managing Partner Prajeeth Balasubramaniam; Celestia International CEO Chandana Silva; Connaissance De Ceylan CEO Chamin Wickramasinghe; EW Information Systems Chairman Sanjeewa Wickramanayake; Hayleys PLC Director Sarath Ganegoda; hSenid Group Chairman Dinesh Saparamadu; Lanka Harness Executive President Rohan Pallewatta; MAC Holdings Chairman and President Otani San; MAC Holdings Managing Director Andre Fernando; MendisOne Managing Director Rishantha Mendis; Microsoft Sri Lanka and Maldives Country Manager Harsha Randeny; Tomo Wold Ceylon Chairman Nishantha Perera; Adamjee Lukmanjee and Sons Business Partner – Exports Hashini Kalansuriya; Jayalanka Suppliers Managing Director Ganidhu Ishara; Transfood Lanka Director Sajahan Pasie, NCINGA Group Managing Director Vajira Wijesinghe, and The CCC Assistant Secretary General Dinithi Dias.

Apart from being one of the leading development partners for Sri Lanka and top investors, Japan is Sri Lanka’s 15th largest export market at $ 170 million and Sri Lanka’s 16th biggest source for imports at $ 250 million as per 2024 data. Japan is also the 16th biggest source market for tourists at 25,000 in the first eight months of 2025.

The Bar Association of Sri Lanka (BASL) has written to the Inspector General of Police to clarify the position on lawyers’ car passes, following recent public debate on the issue.

In its letter, the Association said that attempts to invalidate or remove the passes on the basis of a Gazette Notification would be unlawful, since the order does not extend to the use of BASL-issued vehicle passes.

The Association argued that the passes, displayed on windscreens, do not contravene the Motor Traffic Act.

The BASL expressed confidence that the existing system of issuing passes would continue unchanged, emphasising their role in day-to-day legal practice and security arrangements.

It noted that the passes allow attorneys-at-law to be identified when entering courts, tribunals and other institutions linked to the administration of justice, and are also used by law enforcement as verification that a vehicle belongs to a lawyer.

The Association highlighted that it has issued these annual passes since 1997, making it a 28-year practice. In the aftermath of the Easter Sunday attacks in 2019, an additional identification mechanism was introduced for vehicles at the request of security authorities, underscoring the importance of the system as a safeguard.

‘We are surprised to see such reports. You would no doubt appreciate the requirement for a lawyers’ car pass, and we are confident that no steps will be taken to alter the present status quo,’ the Association said in the letter, signed by BASL President Rajeev Amarasuriya and Secretary Chathura Galhena.

The Ministry of Health and Mass Media, with financial support from the Asian Development Bank (ADB) and the Health System Enhancement Project (HSEP), received seven double cabs worth Rs. 22 million.

Prime Minister Dr. Harini Amarasuriya yesterday called on newly appointed Sri Lanka Administrative Service (SLAS) officers to contribute to building a dedicated and efficient public service free from political interference and malpractice.

Addressing 1,890 newly appointed Grade III SLAS officers, she said the Government’s goal is to establish an independent public service that properly serves the people.

‘You are not joining a traditional public service. You are not entering the inefficient, politically-influenced public service that has prevailed for years, but rather an independent service that stands on behalf of the people,’ she said at the ceremony held to award appointments to those officers who were selected from the open competitive examination and subsequent interviews for recruitment to Grade III of the SLAS.

Dr. Amarasuriya noted that the examination, originally scheduled for November 2020, had been delayed for four years due to restrictions on open recruitment and with around 5,000 vacancies in the Administrative Service, the Cabinet has approved the filling of 2,223 posts, of which nearly 1,890 officers are now being appointed.

‘Recruitment was conducted strictly according to district quotas based on the 2020 population ratio, and candidates were selected purely on merit and were interviewed by the Ministry of Public Administration, Provincial Councils, and Local Government with complete transparency,’ she explained.

Dr. Amarasuriya also stressed the Government’s commitment to digitising public services to deliver them more swiftly and ensure a people-centred administration while public officers now have greater independence.

But the Prime Minister warned that fraud, corruption and irregularities would not be tolerated saying that if such incidents were reported, the Government would take the maximum possible action.

‘As honest officials and citizens, you have the right to stand against such fraud, corruption, and irregularities,’ she said, inviting the newly appointed officers to commit themselves fully to the country and people.

Public Administration, Provincial Councils and Local Government Minister Chandana Abeyratne, also addressing the event, said the recruitment had been entirely free of political influence or personal connections. ‘After four years, you represent the largest intake of public service. When you retire, may you have the satisfaction that you helped elevate the public service to a higher standard,’ he said.

‘We are striving for an independent and efficient public service and your contribution is highly appreciated. You might have negative experiences from the public service. Ensure that such bitter experiences are not repeated through your service. Instead, work responsibly to deliver services to the public efficiently,’ he noted.

DFCC Bank has launched Sri Lanka’s first-ever Blue Bond, a Rs. 3 billion issuance dedicated to financing projects that protect and sustain the country’s ocean resources.

The Blue Bond, carrying an expected rating of ‘A(EXP)(lka)’ from Fitch Ratings, will support projects in clean drinking water infrastructure, sustainable marine fisheries and aquaculture, marine renewable energy, eco-friendly coastal tourism, wastewater management, climate adaptation for coastal communities, and clean marine transportation.

It adheres to the International Capital Market Association’s (ICMA) Green, Social, and Sustainability Bond Principles and emerging Blue Bond guidelines, with transparency, a clearly defined use of proceeds, and measurable outcomes at its core.

For Sri Lanka, where nearly 30% of the population lives in coastal districts and livelihoods are tied to fisheries, tourism, and trade, the Blue Bond represents more than capital mobilisation.

It is a commitment to aligning financial markets with environmental realities, safeguarding livelihoods, ecosystems, and long-term resilience, the bank said in a statement.

Follows launch of country’s first Green Bond in 2024

Rs. 3 b Blue Bond to finance projects sustaining maritime resources

SL joins select band of capital markets Seychelles, Fiji, Ecuador, and Indonesia

The initiative builds on DFCC Bank’s legacy of sustainable finance and national firsts. Since financing the country’s first grid-connected mini-hydro project in 1996, the Bank has backed renewable energy projects across wind, solar, and waste-to-energy.

In 2024, DFCC Bank issued Sri Lanka’s first Green Bond, listed on the Colombo Stock Exchange, the Luxembourg Green Exchange, and the NSE International Exchange at GIFT City in India.

The Blue Bond extends this trajectory, directing financial innovation towards the seas and reinforcing the Bank’s 70-year history of driving development with sustainability at its core.

DFCC Bank CEO Thimal Perera said: ‘Each step has been about proving that Sri Lanka can meet the highest international standards. The Blue Bond continues that journey, this time by bringing focus to our oceans, waterways, and the communities that depend on them’.

He added: ‘Finance can change the course of a nation. With its first Blue Bond, DFCC Bank is proving that it can also change the course of its oceans.’

With this issuance, Sri Lanka joins a small but growing circle of nations leveraging capital markets to protect marine ecosystems, alongside the Seychelles, Fiji, Ecuador, and Indonesia.

For DFCC Bank, now in its 70th year, the Blue Bond underscores that development and environmental stewardship are not competing goals but complementary imperatives, the bank said.