Trinity beat Royal in hockey

Trinity College beat Royal College 1/0 at the Under 20 Annual Hockey Big Match played at the Astro Turf Colombo 7 recently. This encounter was played for J C Corea Challenge Shield.

Winning goal was scored by Arkam Rifas of Trinity College. Tevin Liyanage of Trinity College won the Best Player award. The Under 16 match was won by Royal 4/1. This encounter was played for Paul Jeyarajah trophy.

FCEJ stands in support of the birds, the land and the people of Mannar

of Mannar. One of the darkest days of this Government has come to pass on the night of 26 September 2025, with the brutal attack by hundreds of police officers of peaceful protestors in Mannar.1 Many protestors have ended up in hospital including women and children.

For years the people of Mannar have been fighting an inspiring battle against sand mining and the wind power project that threatens to destroy their fragile ecosystem. The wind turbines have affected the globally renowned migratory paths of thousands of birds and sandmining is destroying the coastal ecosystem.2The people of Mannar are feeling the social, economic and ecological deterioration caused to the region.3

The Government appears to be carrying through the plans of the previous regime with cosmetic changes. Having stopped the Indian investor, Adani Company from setting up a wind power plant in Mannar, the contract has been handed over to a Sri Lankan company, Hayleys Fenton.4 There are no assurances that the local company will do anything different from the Indian investor in terms of preserving the environment, and not harming the people of Mannar.

November deadline

Similarly, the Mannar wind power project coincides with the Government coming under review by the International Monetary Fund (IMF) of their ‘electricity tariff methodology’ in November 2025. This is a pre-requisite for the Extended Fund Facility. The review is to ensure ‘cost recovery and cost reflectiveness’ and the urgency to deliver a broader and privatised energy sector. The bulldozing through of the Sri Lanka Electricity Act in the past few months,5moving electricity closer to complete privatisation by unbundling the services and forming new entities of Ceylon Electricity Board,6 and the now violent removal of people raising concerns about the Mannar wind power project seem to align with the November deadline.

On the other hand, the Government reminds people that the electricity tariffs have been reduced. Taken in light of the monumental increases between 2022 and 2024, the reduction is not a significant relief. The reality is that paying electricity bills has become another burden pushing ordinary Sri Lankans into an incessant debt cycle. The systems of forcing payment of bills are causing households to struggle without electricity for many months.

The people protesting in Mannar surely had hopes for change. Instead, the continued dancing to the tune of the IMF, the blindness to the irreversible environmental and social impact of a wind power plant and sand mining, and the complete failure to engage people’s views, in this instance, cries, means there is no system change. The people of Mannar speak from their lived experiences of existing wind turbines and the loss they have already suffered.7The situation in Mannar is particularly horrifying as the destruction to the fragile ecosystem and erasing of the culture and livelihood of people who are tied to this ecology are irreversible.8

Act of suppression

The attack on the protest is also an act of suppression of Tamil speaking people of the North of the island. The attack took place in the context of a history of marginalisation of Tamil and Muslim communities, and the continued experience of Sinhala majoritarianism. A Sinhala majoritarianism that continues to dictate the actions of this Government within its party and beyond. Populations severely disenfranchised for generations because of the war, violence and top-down imposed ‘development projects’ by the Sri Lankan state will, justifiably, see this as yet another oppressive act by a Sinhala state. The majoritarian mindset has fuelled conflict and justified violence. It is a violence that is valuable to corporations also interested in capturing markets such as the energy sector.

Bringing ‘green energy’ without real consideration for the environment or human rights is an exercise in green washing which many governments and companies across the world are engaging in. Dismantling the subsidised public energy sector to make way for profit extraction by private parties in the guise of expanding renewable energy projects is another trend we are witnessing world over. To see the National People’s Power Government joining these ranks is troubling. The move is particularly tragic, as Sri Lanka has been known as a country that had achieved 99% electrification through its public energy sector.

Right to energy as a fundamental right

We require a thorough review of the energy infrastructure, costs and inflow through a consultative process that takes as its foundation the right to energy as a fundamental right. Through this lens, it will be possible to restructure tariffs and undertake other measures to balance cost and income from the energy sector without bringing ecological and social destruction. This is imperative as the existing mode of addressing the issue, especially through privatisation, is unsustainable in the long run and will only increase costs to the Government and to the people.

People must have a right to energy, a basic necessity for life today. This right must co-exist with the right to a safe environment. To pit one against another is a vulgar mode of functioning which has become all too common in the world. To watch a supposedly ‘progressive government’ that rose to power through the energy of people’s protest join the bandwagon of this vulgarity is heartbreaking.

Elephant in the room

The recent sentencing of Niraj Roshan, widely known as Ali Roshan, to 15 years in prison and a fine exceeding Rs. 20 million marks the first time a high-profile wildlife smuggler has been held accountable in our courts. Roshan was convicted of unlawfully keeping five elephants without valid permits.

This verdict deserves to be welcomed. For decades, Sri Lanka has watched helplessly as its majestic elephants were ripped from the wild, trafficked under fraudulent documentation, and paraded as trophies of wealth and influence.

Yet, in celebrating this victory, we must not ignore the metaphorical elephant in the room. Ali Roshan, despite his notoriety, could not have operated such a vast smuggling empire alone. His activities thrived because of the politicians, Government officials, business magnates, members of the clergy, and even elements within the judiciary who aided, abetted, and benefitted from his crimes. Unless these powerful enablers are also brought before the law, the justice delivered recently will remain incomplete. Partial justice that risks becoming little more than symbolic.

Among the politicians allegedly entangled in this sordid affair was none other than Gotabaya Rajapaksa. During his tenure as president, the case against Roshan was shamelessly dragged on. Even worse, elephants that had been seized and placed in judicial custody were handed back to their so-called ‘owners,’ an act that amounted to a betrayal of both justice and the voiceless animals whose lives were at stake. At that time, the judiciary seemed paralysed, unwilling to stand up to the Rajapaksa regime. The courage and activism we see from today’s courts were absent then, leaving traffickers free to thrive under the cover of political patronage.

The belated conviction of Roshan is therefore both a triumph and a reminder of how much was lost during those years of cowardice and complicity. How many elephants were torn from their herds? How many were forced into servitude, chained in backyards or temples, while their natural bonds and habitats were destroyed? How many officials lined their pockets? These are questions that demand answers, not merely from Roshan, but from the entire network that sustained him.

If Sri Lanka is serious about turning a corner in the protection of its wildlife, this judgment must be the beginning, not the end. The Attorney General, the Wildlife Department, and the judiciary must act with equal vigour in pursuing those who provided Roshan with cover and legitimacy. Every politician who interfered, every official who falsified permits, every business leader who profited, and every monk who blessed this cruelty and even kept these illegal elephants in their temples must face the same uncompromising standard of justice. Anything less would reduce Roshan’s punishment to a token gesture, harsh enough to shock, but hollow in its effect.

Elephants are more than animals to Sri Lankans. They are living testaments of our rich biodiversity and cultural heritage, symbols of wisdom and strength, and integral to our ecosystems. The subspecies of Asian elephant is endemic to the island and if they were to go extinct that genetic resource will be lost forever. To traffic such an animal is to desecrate not only our biodiversity but also our identity as a nation.

Ali Roshan’s conviction must therefore serve as a warning to all who believe they can hide behind political power, social influence, or religious standing to exploit the voiceless. Sri Lanka has begun to show that justice can reach even those who once seemed untouchable. But until the entire network of abettors is exposed and punished, justice remains unfinished.

Through deepfakes and data breaches, CEOs must lead cybersecurity battle

The 11th Annual Cyber Security Summit, organised by Daily FT in collaboration with CICRA Holdings, commenced last week at Cinnamon Grand Colombo with its flagship CEO Forum, bringing together leading voices from global and local industries. The forum set the stage for a two-day conversation on the rapidly evolving cyber landscape, where Artificial Intelligence (AI) is simultaneously reshaping opportunities and amplifying risks.

Setting the context

During his opening remarks, CICRA Holdings Group Director/CEO Boshan Dayaratne highlighted how the convergence of AI, cloud adoption, and digitalisation has expanded the attack surface for businesses. He emphasised the need for Sri Lankan corporate leaders to elevate cybersecurity from a back-end IT function to a boardroom-level strategic priority. ‘The conversation today is no longer about compliance, but about resilience, trust, and long-term competitiveness,’ Dayaratne said.

This framing mirrors global concerns. The World Economic Forum’s Global Cybersecurity Outlook 2025 warns that 72% of organisations reported a rise in cyber risks last year, with ransomware and AI-enhanced phishing topping the list. The report stresses that in an age of complexity, resilience must be treated as an enterprise-wide responsibility, not merely an IT issue.

A central theme of the forum was the role of AI in cyber defence and cybercrime. Meta Director – Public Policy for South Asia and Central Asia Sarim Aziz noted that while AI-powered tools are enabling faster detection of threats, adversaries are also weaponising AI to carry out sophisticated attacks. He stressed the importance of public-private collaboration in developing governance frameworks that balance innovation with safety.

Globally, two-thirds of executives expect AI to have the most significant impact on cybersecurity this year, yet fewer than four in ten organisations have processes in place to assess the security of AI tools before deployment. The paradox is clear; businesses are rushing to adopt AI without securing it, leaving themselves exposed. Participants also warned that banning AI outright is ineffective; employees will simply turn to personal devices or shadow tools. Instead, companies must set clear usage policies, backed by training and awareness, to prevent sensitive data from leaking into uncontrolled systems.

Global threat landscape

From a financial services perspective, Visa Consulting and Analytics, Asia Pacific Risk Practice Lead Sen Dibyajyoti described the escalating scale of fraud in digital payments. He pointed to phishing, social engineering, and AI-driven scams as the most immediate threats for banks and fintechs. ‘Resilience depends on embedding security by design across payment ecosystems,’ Dibyajyoti said.

Fraud and social engineering were recurring concerns. Deepfake-enabled scams, such as impersonated CEO and CFO phone calls, have already cost global firms millions. Panellists highlighted the importance of layered security using multiple controls such as call-backs, shared secret questions, and verification protocols to counter increasingly sophisticated attacks. Education was stressed as a frontline defence, not only for employees but also for consumers, who are often the most vulnerable target group.

Rajah and Tann Cyber Security CEO Wong Onn Chee reinforced this by warning of ransomware-as-a-service and state-sponsored cyber espionage as top regional threats. He noted that fragmented regulations make coordinated responses difficult. Around seven in ten executives worldwide share this concern, citing cyber regulations as overly complex, fragmented, or burdensome. With cloud migration accelerating across industries, SECGRA Director Paul Hidalgo focused on the structural vulnerabilities of multi-cloud environments. He stressed that traditional perimeter-based security models are obsolete in today’s distributed systems. Instead, he advocated for zero-trust architectures that continuously validate users and devices, combined with strong incident response frameworks.

Supply chain vulnerabilities remain a critical concern, with more than half of large organisations citing third-party risk management as their biggest barrier to resilience. Software vulnerabilities introduced by external partners, coupled with concentrated dependence on a small number of providers, are creating systemic points of failure that ripple across entire economies. The global IT outage in 2024 caused by a single faulty software update served as a stark reminder of this risk.

The forum also highlighted that most AI and cloud vendors limit their liability to refunding subscription fees in the event of a breach. CEOs were urged to negotiate contracts that include liquidated damages clauses, ensuring vendors face real financial consequences if failures expose businesses or customers to harm.

Local imperatives for Sri Lanka

While global experts painted a broad picture, the discussion also returned to Sri Lanka’s specific context. Speakers agreed that the country’s growing digital economy, from e-commerce to fintech to e-governance, faces acute vulnerabilities due to resource constraints and limited cyber maturity. For corporate leaders, integrating cybersecurity directly into business continuity planning is no longer optional; it must be treated as a core element of long-term operational resilience.

At the same time, participants stressed that technology investments alone will not be sufficient. Companies must balance systems spending with the development of skilled people who can anticipate and respond to threats effectively. The skills challenge is especially relevant: two out of three organisations worldwide now report moderate-to-critical cyber skills gaps, with only 14% confident they have the talent they need. For Sri Lanka, where digital adoption is accelerating, workforce development and capacity-building will be decisive in determining whether digital growth can be sustained securely.

The CEO Forum crystallised several strategic insights for corporate leaders. A clear consensus emerged that AI will fundamentally transform the cybersecurity battlefield, with deepfakes and AI-enhanced fraud creating threats that outpace traditional controls. This reality demands that cybersecurity be recognised as a leadership issue, where responsibility cannot rest solely with IT teams. Boards and CEOs must set the tone, embed resilience into strategy, and ensure that security is treated as a driver of trust and competitiveness rather than a compliance checkbox. Importantly, CEOs cannot simply delegate accountability to CISOs or IT managers; regulators and stakeholders are demanding board-level responsibility for cyber resilience.

Equally important was the recognition that the foundation of digital operations is shifting. Zero-trust principles are becoming the new baseline for organisations operating across cloud and hybrid work models, where continuous identity verification and endpoint security are non-negotiable. Leaders were urged to move beyond regulatory compliance by stress-testing systems, building a culture of security, and prioritising collaboration. Since no single company or Government can confront these challenges alone, partnerships across regulators, technology providers, and enterprises will be critical in shaping a safer digital future.

In conclusion

In his closing remarks, Dayaratne reiterated that cybersecurity is not just a technical challenge but an economic and national security priority. He urged Sri Lankan businesses to invest early, adapt continuously, and collaborate openly. ‘The threats are global, but so are the solutions. Our ability to act decisively today will determine whether Sri Lanka thrives in the digital future or lags behind.’

The CEO Forum set a decisive tone for the full-day Cyber Security Summit, where technical experts, policymakers, and industry practitioners delved deeper into emerging technologies and sector-specific risks.

Strategic partners of the 11th annual cyber-security summit were Visa and Sysco LABS, Platinum partner was the South Asia Technologies, Community Impact Partner was Meta, Payment network partner was LankaPay. Other partners included platform partner #HashX, podcast partner Techtalk, hospitality partner Cinnamon Grand, Colombo, Creative partner Mullenlow Sri Lanka and electronic media partner Yes101, TV1 and News1st.

Manneken Pis dressed in traditional costume for Cyprus Independence Day

To mark Cyprus Independence Day, the famous Manneken Pis statue in Brussels will be dressed in a specially tailored Cypriot traditional men’s costume, the vraka, during an event organized by the Cyprus Ministry of Foreign Affairs in collaboration with the City of Brussels.

The ceremony will take place on Wednesday, October 1, at 1:00 PM, in the presence of Cyprus’s Ambassador to the EU Political and Security Committee (PSC), Petros Mavrikios, representing the Ministry of Foreign Affairs. The event serves as a symbolic bridge between Belgian and Cypriot culture, highlighting the importance of independence and national identity.

Manneken Pis is an iconic symbol of Brussels. The 55.5-centimeter-tall bronze fountain sculpture, located in the city center, is regularly dressed in various costumes on a nearly daily basis, with a collection exceeding a thousand different outfits. Since 2017, the costumes-including the Cypriot vraka-have been displayed at the GardeRobe MannekenPis, a museum dedicated exclusively to the statue, located on the same street in Brussels’ historic center.

The vraka was donated to the City of Brussels by the Cypriot Embassy in 2010 ahead of Cyprus Independence Day, and is exhibited in the museum’s “Manneken Pis, a very European Bruxellois” section, alongside other national costumes of EU member states.

Banks pile record cash with CBN as lending stutters

Nigerian Deposit Money Banks are parking record amounts of excess cash at the Central Bank of Nigeria (CBN) deposit window while lending to the economy continues to stutter, even after the recent cut in interest rates.

Data from the CBN shows that banks’ Standing Deposit Facility (SDF) rose to an all-time high of N5.38 trillion on Monday, driven by excess liquidity from Federation Account Allocation Committee (FAAC) disbursements and Open Market Operation (OMO) repayments.

The SDF is a monetary policy tool that allows banks and other deposit-taking institutions to lodge their excess liquidity with the CBN overnight and earn interest – without needing to provide collateral.

The amount deposited by banks surged by 52.6 percent, rising from N3.5 trillion as of September 24, 2025, to N5.38 trillion on Monday, September 29, 2025.

Banks shun lending

On the borrowing side, through the Standing Lending Facility (SLF), commercial banks have shunned the CBN’s lending window for the past nine business days. Borrowing from the apex bank’s window dropped to a one-month low of N22 million on September 16, 2025, the last time such levels were recorded being August 8, 2025, when banks borrowed N25 million.

Over the same period, the CBN carried out OMO repayments worth N459.8 billion in one month, including N254.9 billion on September 23, 2025, and N204.9 billion on September 16, 2025.

The banking system opening balance stood at N338.9 billion as of Monday, September 29, 2025, reflecting a 22.86 percent increase from N275.88 billion at the beginning of the month. Meanwhile, the CBN has not conducted any OMO auction since September 4, 2025, after selling N620.7 billion in an auction on September 3, 2025.

Analysts’ view

Adebowale Funmi, head of Research at Parthian Securities, explained that banks are drawn to the SDF because it remains more attractive than investing in treasury bills. She noted that with the current MPR at 27 percent and an asymmetric corridor of -250/+250 basis points, the SDF rate stands at 24.5 percent. By comparison, the discounted yield on a 364-day treasury bill is about 16.78 percent, with effective yields slightly below 20 percent – making the SDF a more appealing option for banks.

Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), said the surge in bank deposits with the CBN reflects the absence of sufficient credit opportunities to absorb the available resources.

‘Even though the rate has come down, the opportunities are not there. If the risk environment is high, banks will prefer to keep their money with the CBN,’ he said.

Yusuf stressed that the elevated risk perception, particularly among small and medium enterprises (SMEs), discourages banks from lending and suggested that the CBN may need to implement further rate cuts to stimulate credit creation.

At its 302nd meeting last week, the Monetary Policy Committee (MPC) unanimously voted to reduce the Monetary Policy Rate (MPR) by 50 basis points to 27 percent, adjust the symmetric corridor to +250/-250 basis points around the MPR, set the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, and introduce a 75 percent CRR on non-Treasury Single Account (TSA) public sector deposits, while maintaining the Liquidity Ratio (LR) at 30 percent. The move marked the first policy rate cut in five years.

Ayodeji Ebo, managing director/chief business officer at Optimus by Afrinvest, explained that with the MPR corridor fixed at +250/-250 basis points, the SLF rate declines to 29.5 percent from 30 percent, while the SDF rate drops to 24.5 percent from 25 percent.

According to him, this adjustment means banks will now pay slightly less when borrowing short-term liquidity from the CBN and earn marginally less when depositing excess funds overnight. The effect is to keep interbank market rates aligned with the new MPR, thereby ensuring smoother monetary policy transmission.

Ebo added that the imposition of a 75 percent CRR on non-TSA public-sector deposits significantly restricts the portion of such funds banks can deploy for lending, leaving only N250 out of every N1,000 available. He explained that while this measure curtails banks’ dependence on public-sector liquidity, reduces speculative use of government deposits, and strengthens monetary control, it also tightens liquidity further, potentially slowing the pace at which the rate cut translates into actual credit expansion in the economy.

Credit position

Analysts at FBNQuest anticipate a gradual recovery in credit expansion to the real economy, supported by the narrowing of the corridor around the MPR and the reduction in commercial banks’ CRR.

Credit to the private sector declined by 2.2 percent to N76.14 trillion in June 2025, compared to N77.8 trillion as of May 2025, data from the CBN indicated.

‘The rise in deposits to the CBN is an excess liquidity issue,’ said Tilewa Adebajo, chief executive officer of The CFG Advisory. He explained that banks currently hold more funds than they can deploy under acceptable risk-return conditions. According to him, this reflects a cautious stance by banks, given the weak credit appetite arising from high lending rates and elevated risks in the economy. ‘How many people can borrow at 40 percent?’ Adebajo asked.

Umahi says 50-year-old refuse dump stalled Lagos-Calabar coastal highway

Dave Umahi, minister of works, says a refuse dump more than 50 years old and over 10 metres deep delayed work on the Lagos-Calabar coastal highway for four months.

Umahi spoke in Lagos on Monday during an inspection of the project.

‘We also encountered a refuse dump that had been over 50 years old and had over 10 metres depth and spanned two kilometres,’ Umahi said.

‘When we encountered it, we had to stop the work for more than four months.’

Landmark Beach spared after route redesign

The minister said the project initially faced hurdles at kilometre zero, where Landmark Beach and other properties stood in the highway’s path.

‘We decided as a responsible ministry to vary the design of the project,’ Umahi said, explaining that the road alignment was altered to avoid demolishing the beach infrastructure.

He stressed that, contrary to public perception, Landmark Beach was not demolished-only the surrounding shanties were cleared. The six-lane highway was instead split into three lanes on each side to protect the beach.

N15 billion spent on ‘unexpected challenges’

Umahi disclosed that the federal government spent about N15 billion to tackle the unforeseen obstacles.

‘I have directed that all the videos and drawings must be exposed because additional works are involved, and I want those documentaries to be intact,’ he added.

Dany Abboud, managing director of Hitech Construction Company Ltd., the contractor, said the eastbound and westbound lanes were split at kilometre 2.7 to avoid demolitions and later rejoined at kilometre 5.

He added that extensive waste deposits were found between kilometres 3 and 9, with the largest dumpsites at kilometres 4 and 9.

‘We had to excavate to a very big depth and replace it with sand,’ Abboud said.

Putin signs law to denounce EU anti-torture treaty

Russian President Vladimir Putin signed a law on Monday to denounce the European Convention for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment from 1987, after submitting a bill to withdraw Russia from the treaty three weeks ago, Azernews reports.

The denunciation follows the Council of Europe’s decision to withdraw Russia’s membership in March 2022 as a consequence of Russia’s “aggression” against Ukraine.

Russia’s State Duma Chairman Vyacheslav Volodin previously condemned the decision and claimed that Moscow’s requests for representation were being ignored, despite the European Convention’s principle of cooperation.

The Aspiration Trap Fuelling Thailand’s Debt-Spend Dilemma

Thai consumers present a paradox: low confidence in the economy yet resilient discretionary spending. This paradox mirrors dynamics seen in developed countries and regional peers like Indonesia, Malaysia and the Philippines, and it presents a complex consumer behaviour landscape that modern businesses must navigate.

Despite a tight wallet, consumers across the financial spectrum are making adjustments and compromises to satisfy their wants. A young professional worker in Bangkok buys the latest smartphone through staggered instalments, while a construction worker takes his family out for dinner but waits for the month-end sale to restock the monthly groceries. Some groups borrow to maintain their lifestyles – a troubling cycle of debt and spending that warrants attention from both consumers and businesses

The inherently similar yet contrasting behaviours across different financial strata reflect the changes in how consumers across Thailand are managing their finances and making trade-offs based on personal circumstances.

Boston Consulting Group’s (BCG) latest consumer research surveyed 3,000 respondents across Thailand to assess the complex and dynamic consumer landscape. The study explored household finances, attitudes toward income, debt, spending and saving, and the decision-making drivers behind consumption.

Overall sentiment and impact on spending

Overall confidence in the economy is low, with more than 60% of Thai consumers rating the current economic situation as ‘poor’ or ‘very poor’. The mass affluent consumer (MAC) – spanning households with monthly income of 15,000 baht or more – remains the most optimistic (feeling ‘good’ or ‘very good’ about the economy), but sentiment in lower income groups is deeply subdued both nationally and compared to regional peers. For reference, optimism around personal financial stability among Thais (39%) is comparable to the Philippines (35%) or Indonesia (47%), but significantly lower than the bigger economies of the region, namely China (59%) and India (61%).

This subdued sentiment mirrors broader national conditions. Political and economic uncertainty, a weak job market, limited income mobility among lower-income households, and some of the highest consumer debt levels in emerging markets have all dampened confidence and constrained spending.

When it comes to spending, necessities continue to take the most substantial bite out of already stretched wallets. The contrast between MAC and lower-income consumers is stark. MAC households still manage to funnel surplus funds into lifestyle upgrades and investments, while lower-income families remain anchored to basic necessities and small-ticket wants, often by drawing down on their savings. This disparity highlights the widening divide between the ‘haves’ and the ‘have-nots’.

Navigating the balance of want and need

Despite the backdrop of pessimistic consumer sentiment, Thai consumers stand out for how they juggle wants and needs in their spending decisions.

Contrary to conventional wisdom – and indeed their own claims – Thai consumers’ share of spending on discretionary categories continues to hold steady or grow. As cited in BCG’s Global Consumer Radar surveys, consumers typically don’t predict broad economic trends realistically; consequently, their predicted responses to those trends are not realistic. Similarly, for Thai consumers, broader economic outlook doesn’t impact their discretionary spending commitment. Even in a scenario where there is an income dip, discretionary spending takes around a quarter (22% to 25%) of total consumer spend.

This provides a glimpse into a consumer’s underlying desire for affluence and aspirational lifestyle goals – Instagram-worthy vacations, expensive goods, dining out, and similar hallmarks of status.

These aspirations show up in everyday choices, as consumers trim routine expenses to make room for the experiences and products they value most. Everyday staples are the first items of ‘need’ that we see pruned. This adjustment doesn’t manifest only as buying less volume, but in a variety of other different ways – buying items with discounts or buying more affordable brands.

This sacrifice of everyday needs to fulfil aspirations provides two clear takeaways for marketers seeking to appeal to the modern consumer.

The first opportunity lies in capturing a greater share of discretionary spending – not always on luxury products, but on items that give consumers the sense of a lifestyle upgrade. Sephora shows how this can work in practice – offering its own private-label products as affordable luxuries, while stocking prestige brands alongside them in the same stores. This offers consumers a unique mix of experiencing luxury while keeping spends on ‘wants’ in check.

The second opportunity is in value-tier offerings for essential goods such as groceries and household products, which many consumers view as a practical way to save costs. Muji exemplifies this approach by spanning the spectrum – from affordable essentials like cotton fabrics and basic storage solutions at the entry level, and scaling upward through premium offerings such as specialty textiles, compact modular furniture and other curated lifestyle products – thus enabling consumers to exercise choice and control over how much they spend, even on essential items.

Understanding the credit landscape

Spending and credit go hand-in-hand, meaning a full picture of Thai consumers must also take into account the current debt environment. Roughly one-third of Thai households carry 80% of personal debt, excluding mortgage and educational loans. This underscores a heavy debt mountain for a significant minority of the population.

Interestingly, these ‘top-debtors’ are notably skewed towards specific income segments. Almost 2 in 3 of these top-debtors are from the middle-class segment with a monthly household income of between 15,000 and 49,000 baht and hold about 3 times more debt than an average Thai consumer.

Understanding the complexities of this top-debtor landscape has important implications for consumers and businesses.

Top debtor danger zone

The delicate balance of ambition and means is creating pitfalls for top-debtors in Thailand. The spiral to borrow more to spend more begins by embracing a borrowing lifestyle, giving in to aspirations beyond the realities of household finances.

This borrow-to-spend mindset is pushing top debtors deeper into an expanding debt hole with loan values for this group rising six times faster than the average consumer’s over the past year. They also have a debt-to-service ratio that’s double the average. Compounding the problem, three out of four top debtors have not increased their repayments in the past year. Together, these dynamics signal growing momentum toward a debt spiral for this segment.

These debt dynamics tell an important story for Thailand’s economy. On one hand, they signal a growing willingness to borrow – especially among middle-class households, who are now the top borrowers. On the other, they expose the vulnerability of lower-income families, many of whom carry non-productive debt.

A sharper focus on risk assessment in debt financing is critical to curbing defaults. The Bank of Thailand introduced updated ‘Responsible Lending’ regulations effective January 31, 2025, to strengthen fair treatment and management across the entire loan lifecycle – from product design to debt transfers – aimed at more effectively resolving household debt issues.

Ultimately, Thailand’s paradox of subdued confidence and resilient spending underscores both risk and opportunity. Consumers continue to reach for lifestyle upgrades even as debt mounts, creating growth potential for businesses and responsibilities for lenders. Broadly speaking, while long-term structural growth in MAC is still robust for a middle-income market like Thailand (MAC population is expected to grow by 14% over the next 10 years), there is a need to navigate the short-to-mid-term effectively. The path forward lies in reconciling ambition with financial discipline – fostering sustainable consumption without fuelling unsustainable debt.

Special thanks:

The authors would like to thank Aditi Bathia (Expert Project Lead, Center for Customer Insight [CCI], Boston Consulting Group) for contributing her insights to this article.

Governorship aspirant felicitates party chair on birthday

All Progressives Congress (APC) governorship aspirant in Oyo State, Dr. Adewale Kareem, has congratulated state party chairman, Alhaji Olayide Moshood Abas, on his birthday.

In a message, Kareem (AKK), said Abas is ‘a pillar of progressive ideologies and a rallying point for members.’

He lauded the chairman’s leadership style, noting it has strengthened party unity and expanded APC’s reach in Oyo.

‘Under your guidance, APC in Oyo State has witnessed a huge drive toward attainment and growth, marked by acceptance and influx of dedicated individuals,’ Kareem said.

The governorship hopeful recalled that Abas’ open-door leadership approach facilitated the admission of more members, including his structure, Aseyori Support Group.

Kareem also hailed the chairman’s ability to balance his political responsibilities with his national assignment as chairman of Federal Neuropsychiatric Hospital, Kaduna. He said Abas has demonstrated professionalism and discipline in harmonising both roles.

‘Your ability to harmonise these roles has advanced public health and fortified our party’s strength in Oyo State,’ Kareem added.

He prayed for long life, good health and greater wisdom for the celebrator, wishing him success in his endeavours.

‘Your well-being is a blessing to us, and I look forward to years of your inspiring leadership,’ the statement read.