Amana Bank footprint expands to 70 with opening of two more self-banking centres

Amana Bank recently opened its 36th and 37th self-banking centre in the towns of Maruthamunai and Natpiddimunai in the Eastern Province. With these two openings, Amana Bank’s footprint has expanded to 70 customer locations, which includes 33 fully fledged branches, reinforcing the Bank’s commitment to enhancing inclusivity, accessibility and convenience for customers across Sri Lanka.

The Maruthamunai self-banking centre, located at No. 253, Main Street, Maruthamunai – 03, and the Natpiddimunai self-banking centre, situated at No. 343/A/1, Main Street, Natpiddimunai – 04, offer customers 24/7 access to cash withdrawals, cash deposits and cheque deposits as well as bill payments through the Pay and Go facility.

The inauguration of the two centres was attended by Amana Bank’s Chief Operating Officer Imtiaz Iqbal, Treasury and Financial Institutions Vice President Harindra Obeyesekere, SME and Regional Branches Assistant Vice President Arshad Adhnan, Retail Sales and Acquisition Channels Head Mohamed Asmil, Kalmunai Branch Manager Mohamed Sameem, and Kalmunai Unity Square Branch Officer-in-Charge Mohamed Naimulla, together with local business representatives and residents.

Commenting on the opening Chief Operating Officer Imtiaz Iqbal stated ‘We are pleased to expand our customer touch points with the opening of these two new self-banking centres. This expansion reflects the growing demand for our people-friendly and development-focused banking model in the Eastern Province, where we now serve customers through 9 branches and 11 self-banking centres. Our goal is to bring banking services closer to communities, providing them with unmatched ease and convenience in their financial transactions. These new centres are also well-positioned to support the diverse banking needs of the local economy, including sectors such as paddy cultivation, fisheries, agriculture, poultry, and trading, thereby contributing to the region’s overall growth and prosperity.’

Rising international recognition of Palestine statehood

Last week, at the UN General Assembly, the UK, France, Canada and Australia recognised Palestine as an independent, sovereign state. With the latest development, 157 of 193 UN member states recognise Palestine as a sovereign, independent country. The acknowledgement of statehood of Palestine by countries that have been sympathetic to Israel in the past represents the growing international isolation of the Jewish state as well as the overwhelming, international opposition towards Israel’s military offensive in Gaza.

At the recent Doha Summit, representatives from the United Arab Emirates, Bahrain and Morocco – the Middle East nations that maintain diplomatic ties with Israel as part of the Abraham Accord – agreed to review diplomatic and economic relations with the beleaguered state.

In view of the massive international backlash Israel is facing as the war in Gaza escalates, Israeli Prime Minister Benjamin Netanyahu had warned his country could face isolation for years and has no choice but to stand on its own. Israel is currently encountering either partial or complete arms embargoes from France, the Netherlands, the UK, Spain, and Italy.

At least 67,000 people have been killed and another 167,000 have been wounded since the war in Gaza began in October 2023. Some international observers have opined the recognition of statehood by few countries in the West as a mere face-saving exercise in the wake of growing worldwide displeasure about the severe humanitarian catastrophe that is taking place in the Middle East.

Despite the overwhelming international censure, the US, Israel’s biggest ally, is firmly backing the Middle East state. Although former President Joe Biden was expressing a sense of reservation in terms of providing unconditional support to Israel during the latter stages of his tenure, the Trump administration has adopted a markedly pro-Israel stance.

Meanwhile, the UN General Assembly last month voted to endorse a Hamas-free government for Palestine. Israel and Palestine living side by side in peace with recognised borders has been advocated as the lasting and viable solution to one the most pressing and brutal conflicts in the world. However, Hamas has steadfastly refused to accept the existence of Israel. Many commentators in the Sri Lankan media who express their views about the conflict in the Middle East often overlook the atrocities committed by Hamas. Tactics and ideology of Hamas and its backers have been recognised as the foremost obstacle to peace in the region. In fact, the devastating two-year-long war began on 7 October 2023, when Hamas and other Palestinian militant groups launched an attack on Israel, in which 1,195 Israelis and foreign nationals, including 815 civilians, were killed while 251 were taken hostage.

Sri Lanka has been a staunch supporter of the cause of Palestine. The top political leaders of the NPP were enthusiastic supporters of Palestine before coming into power and opposed Israel vociferously. Nevertheless, critics have pointed out that since capturing power, the ruling political party has softened its stance on Israel. Surprisingly, the Ministry of Foreign Affairs in its statement about the Israeli airstrike on Qatar on 9 September did not even include the name of Israel.

The Trump administration shared a 21-point plan to bring permanent peace in Gaza few days ago on the sidelines of the UN General Assembly. It envisions the pathway for a state of Palestine while advocating for immediate release of Israeli hostages. Decisive and forceful action is imperative to bring lasting peace in the Middle East, and it requires sacrifices from both Israel and Palestine.

CCPI in September continues on positive territory

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI), which returned to positive territory in August, continued its upward trend toward the inflation target in September 2025.

The Central Bank said, headline inflation (Y-o-Y) accelerated to 1.5% in September from 1.2% in August, in line with the Central Bank’s near-term projections.

It added that the food inflation (Y-o-Y) accelerated to 2.9% in September from 2% registered in August, while the non-food inflation (Y-o-Y) decelerated marginally to 0.7% in September from 0.8% in August.

On a month-on-month basis, the CCPI increased by 0.17% in September 2025, for which the food category contributed 0.10 percentage points and the non-food category contributed 0.07 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, remained unchanged at 2% in September 2025.

‘Realised quarterly average headline inflation for Q3-2025 is in line with Central Bank’s projections. The latest projections show a gradual acceleration of inflation in the period ahead towards the target of 5%, with the support of appropriate policies,’ the CBSL added.

Gotabaya: Untold achievements

Gotabaya Rajapaksa, former President of Sri Lanka, son of D.A. Rajapaksa, was born in June 1949, Palatuwa in Matara district as the fifth of nine siblings. He was brought up in Weeraketiya in Hambantota district. Hailing from a well-known political family, his father a prominent politician, Member of Parliament and the Cabinet Minister of Agriculture and Land in Wijayananda Dahanayake government and Mahinda Rajapaksa his elder brother. He was educated at Ananda College, Colombo and joined the Sri Lankan Army.

Gotabaya’s army career

Gotabaya joined the Sri Lanka Army as a cadet officer on 26 April 1971, in the middle of the 1971 JVP insurrection. Following basic officer training at Army Training Centre, Dityatalawa, he was commissioned as a signals officer and transferred to several infantry regiments. He was commissioned as a second lieutenant in May 1972, in Sri Lanka Signals Corps. He was sent to a young officers course at the Military College of Signals, Rawalpindi. On his return, he was assigned as signals officer to Task Force Anti Illicit Immigration, based at Palaly, under the command of Colonel Tissa Weeratunga. In April 1974, he was promoted to Lieutenant and in October transferred to Sri Lanka Singha Regiment as an infantry officer.

In April 1975, he attended an infantry officers course at School of Infantry and Tactics, Rawalandi, Pakistan. Returning in June, he was assigned as battalion intelligence officer at Echelon Barracks in Colombo and promoted to Captain in April 1977. Following the change of government in the 1977 general election, he was transferred to the Army Training Centre, Diyatalawa as an officer instructor.

In 1980, he joined the newly formed Rajarata Rifles as its adjutant under the commanding officer Lieutenant Colonel V.K. Nanayakkara. Rajapaksa played a major role in establishing the regimental headquarters of newly formed regiment at Saliyapura. He attended the Counter-Insurgency and Jungle Warfare School, Assam and in 1982 attended the Defense Services Staff College in Wellington, India, gaining the PSc qualification and a Master of Science in Defence and Strategic Studies from University of Madras.

Vadamarachi operation

He was involved in the early stages of the Sri Lankan Civil War, in the Gajaba Regiment. In May 1987, Sri Lankan forces launched the Operation Liberation, the biggest military operation since independence. Brigadier Denzil Kobbekaduwa and Major Gotabaya Rajapaksa with 5,000 troops left their bases in Jaffna, fighting rebel Tamil Tigers who kept soldiers confined to the barracks for over a year. The operation was a success, within a week, the Vadamarachchi was brought under Government’s control, scores of rebels killed or captured and their munition factories destroyed.

In 1988, he attended the advanced infantry officers course at US Army Infantry School, Fort Benning, USA. After a number of transfers he was appointed Deputy Commandant of Sir John Kotelawala Defence Academy. He retired from the army on 1 November 1991.

Civilian Gotabaya

Following return to civilian life, Rajapaksa read for a postgraduate diploma in information technology from University of Colombo and joined Informatics, an IT firm based in Colombo. He migrated to United States in 1998 and worked at Loyola Law School, Los Angeles, as a Systems Integrator and Unix Solaris Administrator.

He returned to Sri Lanka in 2005, to his assist brother’s presidential campaign. With Mahinda becoming the President, Gotabaya was appointed Defence Secretary. He was the target of an assassination attempt in December 2006 by a Tamil Tiger suicide bomber, which failed. During his tenure, Sri Lankan Armed Forces successfully concluded the long Civil War defeating Tamil Tigers and killing leader Velupillai Prabhakaran in 2009. Following the defeat of his brother in the 2015 Presidential election he stepped down.

Colombo Development Plan

In June 2012, as the Secretary of Defence and Urban Development, Gotabaya Rajapaksa launched the Metro Colombo Urban Development Project funded with $ 223 million from World Bank. The project aimed to solve several of the city’s longstanding infrastructure constraints, developing Colombo to transform into a world class one. The proposals highlighted the following.

Flood and drainage issues

The Metro Colombo Urban Development Project, a five-year long undertaking comprised three main components. First, it was to address flood and drainage issues in Colombo metro region. The city’s drainage infrastructure, its micro drainage channels, primary and secondary canals and lakes will be rehabilitated. Beira Lake was particularly important, as the lake had been neglected for many decades.

Drainage and public infrastructure

The second component aimed at supporting local authorities in the Colombo metro region to rehabilitate and manage drainage and public infrastructure in their areas. Selected roads were improved. Pedestrian facilities and public conveniences were upgraded and quality of public walkways improved.

Under Gotabaya’s supervision, dedication and the hard work of everybody involved, the projects were designed swiftly and approved by the Government and the World Bank in record time. It’s to be noted that on most days Gotabaya was present at construction locations in early mornings, forcing the staff and workers to report on time.

Public open spaces

Residents of Colombo needed access to public areas near their homes, where they can relax, exercise and interact with one another freely. Accordingly several projects were launched to improve the quality of existing urban spaces.

Development of Independence Square is a good example. Established to commemorate Sri Lanka’s independence from British rule in 1948, the Square was neglected in recent years. With the removal of walls and fences that obstructed parts of it and the development of walkways and bicycle paths around it, Independence Square was transformed into a high quality public space.

In addition, long neglected Old Dutch Hospital was renovated and reopened, while retaining the spirit of the original architecture. The hospital was rehabilitated and transformed into a public open space, housing, high-end shopping and restaurant facilities.

The old Colombo Racecourse, which was scheduled for demolition, was rehabilitated. Its pavilions were conserved and converted to suit new activities, while the area with road frontage converted into an upmarket shopping complex.

Support for overall implementation

The third component of the project provides support for the project’s overall implementation. An area often neglected in projects, resulting in outcomes short of initial expectations.

Redevelopment of marshes and abandoned paddy fields

What attracted the attention of Gotabaya was the massive marshes and abandoned paddy fields around Colombo. These included Diyatha Uyana on the banks of the Diyawanna Oya near the Parliament, Beira Lake Linear Park and the Bellanwila Park and many others.

In these developments Gotabaya, as Secretary of Defence and Urban Development, took care not to involve public contractors, but used the Army and the Navy which were under him. In addition to the machinery already held by the forces, the required machinery and equipment for the excavation and construction were purchased with World Bank funds already received.

Beira Lake

Beira Lake gates were not functioning, its tributaries and output channels were blocked and the unauthorised settlements and buildings on its borders had severely polluted the water. Instead of being an attraction, Beira Lake had become an eyesore. It was rehabilitated to restored to former splendour and enhancing its utility. The developed Beira Lake Linear Park is important in the city’s flood management system, whilst being the site of many recreational and economic activities, is a centrepiece in revitalised city of Colombo.

Basic construction

Basic construction included excavation of shallow marshes and abandoned paddy fields into lakes and using excavated materials to build bunds around the lake, using as walking paths, also constructing a network of reservoirs and improvement of canals to control floods in Colombo.

Diyatha Uyana on the banks of the Diyawanna Oya

Constructed on the banks of Diyawanna Oya, Diyatha Uyana was created with excavated materials from marshes, between Diyawanna Oya and Polduwa Road. It is a picturesque place in Sri Jayewardenepura, Kotte. With a water fountain at its entrance, Diyatha Market is the highlight of the park. The market consists of over 100 stalls, protected by white canopies. The fountains allow kids to explore and play with water, making it a fun, experience for families.

Diyatha Uyana Park was officially opened on 15 September 2014. The opening ceremony was graced by key figures, including Basil Rajapaksa, the Minister of Economic Development and Gotabaya Rajapaksa, Secretary of Defence and Urban Development.

Essentially the park, housing numerous food stalls, shops and places to relax, dedicated to sales and marketing of local flora and tropical flowers, comprising of 84 sales outlets and canteens providing employment opportunities to locals. The market offers plants (both indoor and outdoor), fertilisers, flower pots and gardening tools, the largest plant market in Colombo. It also offers batik clothing, handmade crafts, home decorating items and traditional Sri Lankan sweets.

Diyatha Uyana project was carried out under the close guidance and supervision of Gotabaya Rajapaksa. The combined efforts and expertise of Sri Lanka Land Reclamation and Development Corporation, Sri Lanka Army, Navy and Civil Security Department personnel were utilised in the construction of the project.

The Diyatha Uyana playground offers kids a play area featuring swings, slides, see-saws and climbing structures designed with safety in mind. The safety rubber surface ensures that toddlers can play freely without any worries.

With grassy areas surrounding the playground, kids can run around, ride bicycles, or enjoy activities like skateboarding. Parents can relax by the lake while keeping an eye on little ones, making it a great place for a family outing.

For cycling enthusiasts, Diyatha Uyana offers a dedicated cycling track around the lake and through the park, spanning around 3 km. Bicycles could be rented at the entrance for Rs. 100 per hour, the cycling track is open daily from 6 a.m. to 8 p.m.

Also a visitors’ attraction to Diyatha Uyana, the floating restaurant accommodates around 40-50 people at a time, serving delicious food; the restaurant is popular with visitors.

Bellanwila walking path

The most popular development project of Gotabaya Rajapaksa is the Bellanwila walking path, constructed by excavating marshes and abandoned paddy fields using Sri Lanka Army and Navy personnel with no private contractors. In addition to their machinery, World Bank funds received were used to purchase machinery requirement.

The park is in a large land located between Boralesgamuwa-Dehiwala road and Boralesgamuwa-Kohuwala roads.

The admission to Bellanwila Park is free, as one enters, to the right is the vehicle park and a building, hosting the food court with a dedicated seating area overlooking the lake, some in the open under the trees. The seating is on concrete chairs and tables capable of seating over 100 persons, with no possibility of stealing.

To the left is the beautiful large lake with walking path and cycle track. The pleasant walking space around the lake is more than just an exercising spot. The excavated materials from the marshes and abandoned paddy fields were used to construct the large elevated walking paths and cycle tracts.

As you stroll through its winding paths Bellanwila Park, with its serene lake, towering trees and diverse wildlife, is a perfect spot to escape the city noise, recharge your spirit and immerse yourself in the rich biodiversity. Bellanwila Park offers a refreshing breath of fresh air, lush greenery and a chance to experience the vibrant flora and fauna of Sri Lanka.

Bellanwila Park offers a sandy walking path and an asphalted cycle track, each 12 feet wide, covering a distance slightly over 2,800 meters, with concrete kerbs separating the tracks and the outside. At the centre are electric posts with lights on either side, located every 20 meters apart with sign boards indicating distance every 100 meters. The lights come on at 6:30 p.m., allowing round the clock usage.

Walkers around the path notice sign boards warning ‘Be careful of crocodiles’. One would see an occasional crocodile sleeping on banks 20-30 meters away, also the head of a crocodile jutting out of water. There is nothing to fear, as all lake areas are fenced over a meter high.

The park is most popular in the evenings, for walking one or more rounds. Late in the evening, even after 9 p.m. there are latecomers, who could come only after completing their office work. Bellanwila Park, home to over 150 species of plants and variety of trees, including majestic kumbuk trees who love nearby water and the fragrant cinnamon, is a haven for botany enthusiasts. In addition, children use the cycling track with their three-wheel and two-wheel cycles.

The park also offers a children’s play area with swings, slides and climbing structures promising hours of fun. Parents can relax on nearby seats while keeping an eye on their playing little ones. The safe environment allows kids to explore and play freely, making it a perfect outing for families.

Bellanwila Park also offers a number of small shops offering a wide variety of delicious local cuisine, also a variety of fruit drinks. For those who wish, dinner is available in a wide variety or takeaway.

Although the admission to the park is free, cars are charged Rs. 50 per hour. On weekends and holidays parking would be full, having to wait 10 to 15 minutes for parking. But roadside parking is always available and is free.

Other developments

In addition, around Boralesgamuwa, other developments have been carried out, a km towards Piliyandala is the Kilimandala Children’s Park, with a nearby large pond popular with children. Opposite the park is another lake smaller than Bellanwila, also with a walking path around, but no cycling.

On either side of Old Kesbewa Road before Udahamulla on High Level Road, hosts a number of smaller lakes developed by dredging the marshes, along with walking paths and seating with lighting.

Cutting off Milk Board Hill

Ten years ago, Milk Board was located on a hill in Narahenpita, with a high water tank. Gotabaya removed the earth around the water tank, leaving only a road to get there. A large amount of earth excavated were deposited over the marshes nearby and either side of Kirimandala Mawatha. On the filled land, today, Ninewells Hospital, parking area for Kings Hospital, Narahenpita Economic Centre has been constructed, with large filled lands still remaining vacant awaiting usage. A part is occupied as parking for machinery of Low Lying Areas Reclamation Board. In addition, Heen Ela Mawatha, by the side of the stone built deep canal conveying rain and flood waters preventing floods. Meanwhile, on Heen Ela Mawatha with a number of byroads leading from it, a large number of houses have been constructed.

President Gotabaya

Gotabaya Rajapaksa, contested the 2019 Presidential election and became the first President of Sri Lanka with a military background, also the first President who had not held an elected office in prior.

2019 economic crisis due to Easter bombing

On 21 April 2019, Easter Sunday, eight bomb blasts occurred in and around Colombo. Three churches and three luxury hotels in Colombo, were targeted in a series of coordinated Islamic terrorist suicide bombings. Also four hotels and three churches in the greater Colombo area and in Batticaloa, killing 269 people, including five Americans. The Government took steps to search and catch culprits and supporters, mostly Muslims.

The Government action was condemned by Arab countries who stopped the purchase of tea and rubber and ended oil exports to Sri Lanka.

This resulted in a drop of tourist arrivals from 7,600 to 1,700 for the two-month period after the attacks, leading to the country’s worst economic crisis, unprecedented levels of inflation, depletion of foreign exchange reserves, resulting shortages of medical supplies, increasing prices of commodities.

Without funds to import fertiliser, Gotabaya took action for a nationwide policy shift to organic or biological farming. The country received an Indian line of credit amounting to $ 4 billion. This infusion served to cover the costs of importing essential goods and fuel. As a result, the foreign currency reserves of debt-ridden Sri Lanka experienced a notable improvement, reaching $ 2.69 billion.

Corona pandemic

With the spread of COVID-19 world-wide, in early March 2020, the first case of local COVID-19 was recorded. By mid-March around 1,500 COVID-19 cases and 10 deaths were reported. Gotabaya faced the crisis with a militarised path headed by the Sri Lankan army. A three-day holiday till 19 March was declared to minimise public interactions, troops were deployed at airports, and they also increased the number of checkpoints.

Thousands of people were forcibly sent to coronavirus ‘quarantine centres’, those who refused, were hounded by the authorities. By March-end Sri Lanka reported its containment of the pandemic has been a success and eased its coronavirus lock-down with curfew relaxed in Colombo and Gampaha districts. But with the virus, countries stopped importing goods, resulting in unemployment.

Unhappy masses leading riots

With the economic crisis from the Easter bombing and corona pandemic, the country faced the worst economic crisis since independence, leading to unprecedented levels of inflation, depletion of foreign exchange reserves, shortages of medical supplies, and increased prices of commodities. The unhappy communities revolted, led to massive riots, demanding stepping down of Gotabaya.

Gotabaya Rajapaksa leaving the country

On 9 July 2022, Gotabaya fled his official residence in Colombo, before the protestors broke through police barricades and entered the Presidential House. He left the President’s House through a tunnel connecting the Colombo Port. He joined a navy boat and fled to Trincomalee Navy camp. It was reported in the early hours of 13 July, Rajapaksa has reached Maldives through a military aircraft.

Later in the evening, the Speaker of Parliament confirmed that Gotabaya Rajapaksa has resigned his office on 13 July 2022.

The country was in a serious crisis and none of the political parties were willing to take over the Government. Finally Ranil Wickremesinghe from UNP, the only elected member agreed to take over the country. He managed to recover the country and it is another story.

Mahindra Ideal Finance opens branch in Gampola

Mahindra Ideal Finance Ltd. (MIFL), has further expanded its island-wide presence with the opening of a new branch in Gampola on 18 September 2025. This marks the company’s 37th branch and reflects its continued commitment to improving access to financial services across the Central Province and beyond.

MIFL’s Managing Director and Chief Executive Officer Mufaddal Choonia, led the opening ceremony, together with members of the company’s senior management and branch staff. The new branch offers a full portfolio of services, including multi-brand vehicle leasing, business and SME loans, revolving loans, gold loans and fixed deposits, aimed at supporting both individual and business customers in the area.

‘Our expansion into Gampola is part of a broader effort to bring customised, transparent and flexible financial solutions closer to where our customers live and work. We believe every Sri Lankan should have access to tools that help them build a better future for themselves, regardless of geography,’ Mufaddal said.

The Gampola branch adds to MIFL’s growing regional network, which plays a central role in the company’s strategy to extend responsible and technology-enabled finance to emerging communities in Sri Lanka. In recent months, MIFL has introduced several new initiatives, including tailored financial solutions for MSMEs and multi-brand vehicle importers, supported by strategic partnerships and financial product innovation.

IMF flags Sri Lanka macro-bond risks

Sri Lanka could face additional debt service payments of between $ 150 million and $ 270 million a year from 2028 if its economy grows faster than projected, according to the IMF. Payments would continue until 2038 and are capped at around $ 250 million annually.

‘In the case of Sri Lanka, the one-time adjustment nature of the macro-linked bonds presents risks to Sri Lanka as higher payments after 2028, once triggered, would persist even if economic performance were to deteriorate thereafter,’ the IMF said in September 2025 working paper titled ‘Sri Lanka’s Sovereign

Debt Restructuring: Lessons from Complex Processes’.

The extra payments depend on GDP outcomes between 2025 and 2027.

‘Scenarios 1, 2, and 3 are triggered if dollar GDP in 2025-27 exceeds $ 107 billion, $ 99 billion and $ 94 billion, and 2024-27 cumulative real growth exceeds 11.5%,’ the report explained.

Once these thresholds are met, higher payments become permanent for a decade regardless of what happens to growth later.

The IMF noted that State-contingent debt treatments helped address concerns about macroeconomic uncertainties, but designing them prudently was important.

These instruments, known as State-Contingent Debt Instruments (SCDIs), link a country’s payments to its economic performance.

They have been used in Argentina, Greece and Ukraine to bridge differences between debtors and creditors by allowing creditors to trade lower upfront recovery for potential higher future payments.

In Sri Lanka, however, SCDIs constituted a core part of creditors’ recovery and prolonged the negotiations due to their complexity.

‘They can introduce political complications in the future in case higher payments are triggered but are not socially accepted’ the Staff Report said.

While the Fund does not get involved in the details of the instruments’ design in specific cases (this is an issue for the authorities, their creditors, and respective legal and financial advisers), the Fund needs to assess the impact of these instruments on program goals, i.e., the restoration of macroeconomic and debt sustainability,’ it added.

The IMF does not design these instruments itself but stressed it must evaluate their impact on debt sustainability.

This includes assessing whether the extra payments make it more likely that debt targets are breached, whether different groups of creditors are treated fairly, and whether design risks such as uncapped exposures or poorly chosen triggers could undermine repayment capacity.

The Fund explained that these assessments involve ‘complex modelling under the SRDSF framework, which informs the extent to which upside risks can be shared with creditors without compromising debt sustainability.’

The SRDSF, or Sovereign Risk and Debt Sustainability Framework, uses fan charts based on past economic data to simulate thousands of possible outcomes for debt and financing needs.

The IMF then tests whether adding the SCDIs would increase the probability of crossing debt safety thresholds, worsen debt in bad economic scenarios, or create excessive risks in extreme cases.

According to the IMF, Sri Lanka’s arrangement met these conditions. The probability of breaching debt-to-GDP and gross financing needs targets was within acceptable limits.

In scenarios where financing needs were already too high, the SCDIs did not make them worse compared to standard bonds.

The report also noted that ‘the 90th percentile contributions to average GFNs were below 0.4% of GDP,’ meaning even in the most adverse 10% of outcomes, the additional burden was still relatively small. Payments were also capped at $ 250 million per year.

Even so, the Fund cautioned that ‘some risks remain as no methodology can perfectly capture such complex uncertainties.’

Sri Lanka ends SVAT, starts risk-based VAT refund scheme today

The Inland Revenue Department (IRD) has announced a major overhaul of Sri Lanka’s VAT refund system, replacing the Simplified Value Added Tax (SVAT) scheme with a risk-based refund mechanism effective today.

The IRD stated that the new mechanism aims to facilitate faster and more efficient VAT refunds for eligible exporters and projects while reducing opportunities for fraud and errors.

Under the new system, refunds will generally be issued within 45 days of submitting a proper VAT return, depending on the taxpayer’s risk rating. Eligible VAT registrants will be assessed using a statistically robust risk-based methodology and classified into three categories: low, medium, and high risk. Low and medium risk taxpayers can expect refunds without prior verification, while high risk taxpayers will undergo pre-verification before refunds are processed.

According to the IRD, eligible recipients include exporters with direct exports exceeding 50% of their total supply in the preceding year, approved projects under Section 22(7) of the VAT Act, and suppliers to designated Special Projects (SP) and Strategic Development Projects (SDP), where such supplies constitute over 50% of their total supply.

The IRD noted that any non-compliance or errors detected in submitted schedules will pause the 45-day refund timeline until rectification, ensuring accountability in the process.

The SVAT scheme, introduced in 2011, has been a cornerstone of the country’s taxation framework, particularly supporting exporters and strategic projects. However, the move to replace SVAT comes amid growing concerns over VAT compliance and past instances of large-scale fraud.

Notably, Sri Lanka experienced the largest VAT fraud in South Asia in the early 2000s, resulting in a loss of around Rs. 357 million due to unlawful refunds to non-existent companies.

The Government and IRD face a critical challenge in ensuring that the new refund mechanism is robust, transparent and resistant to corruption. With past VAT and income tax refund systems proving vulnerable, policymakers will need to balance efficiency with stringent verification to safeguard public funds.

On 26 September, leading export associations voiced deep concerns and warned of a looming cash flow crisis that could choke the country’s $ 19 billion export target for 2025. At a joint press briefing, representatives from a range of key export industries stressed that while the move is framed as aligning with International Monetary Fund (IMF)-backed reforms, the absence of a tested and functioning VAT refund mechanism threatens to withhold nearly 8% of export earnings or about $ 80 million each month from the sector (https://www.ft.lk/front-page/Exporters-fear—80-m-monthly-cash-crunch-if-SVAT-removed-and-no-refund-system/44-782189).

Alcaraz wins in Tokyo but pulls out of Shanghai

World number one Carlos Alcaraz beat Taylor Fritz 6-4 6-4 at the Japan Open – before pulling out of this week’s Shanghai Masters.

Alcaraz secured his eighth ATP title of the year in Tokyo.

But he then announced that he has withdrawn from the tournament in Shanghai, which starts on Tuesday, writing on Instagram that ‘the best decision is to rest and recover’.

‘Unfortunately, I’ve been struggling with some physical issues and, after discussing with my team, we believe the best decision is to rest and recover,’ he wrote.

The Spaniard twisted his left ankle during his opening-round match in Tokyo last Thursday.

But he showed no signs of an issue during the final, broke for 5-4 and served out for the first set against Fritz.

Fritz twice required treatment to his left thigh before returning for the second and Alcaraz seized the opportunity to pile on the pressure.

The American was broken twice and trailed 4-1 but did offer some resistance in the closing stages, chalking one of those off, but didn’t have enough to stop the six-time Grand Slam champion.

Since losing against Jannik Sinner at Wimbledon in July, Alcaraz has won three successive ATP titles – the Cincinnati Open, US Open and Tokyo Open.

But he will not take part in the tournament in Shanghai, where he reached the quarter-finals last year.

The Japan Open is Alcaraz’s 67th win of the season as he closes in further on Sinner’s tally of 73 wins in 2024.

Murdered crime figure linked to 2012 Thajudeen case

Police yesterday disclosed that an underworld figure killed in Middeniya earlier this year had been inside a vehicle that pursued rugby player Wasim Thajudeen shortly before his death in 2012.

Acting Police Media Spokesperson Nihal Thalduwa said the man, identified as Anura Vidanagamage, known as ‘Middeniya Kajja’, was recognised by his widow in relation to the case.

Investigators believe Vidanagamage was among those who followed Thajudeen’s car on the night of his death. Thajudeen, a former national rugby player, was found dead in his vehicle in May 2012. Although initially reported as a car accident, the case was later reclassified as a homicide.

Vidanagamage, alleged to have ties to organised crime, was shot dead in Middeniya earlier this year. Police said his role in the Thajudeen case has now resurfaced during ongoing probes into underworld activity and unresolved high-profile killings.

Further investigations are underway.

CEAT Kelani scores double wins at World HRD Congress Sri Lanka awards

CEAT Kelani Holdings has been recognised as Sri Lanka’s Employer Brand of the Year 2025, while its Vice President – Human Resources Thushara Hettithantrige was honoured as a ‘Topmost HR Leader of Sri Lanka’ at the 2025 World HRD Congress Sri Lanka awards presentation held in Colombo recently.

The evaluation process for the Sri Lanka awards was based on criteria that encompassed brand strategy, employee value proposition, recruitment and retention, diversity and inclusion, employer reputation, innovation, creativity and outcomes.

The World HRD Congress is a global platform for human resource professionals founded by Dr. R.L. Bhatia, with a dynamic presence across Asia, Africa and the GCC. It is governed and run by professionals and HR leaders across multiple countries with the objective of bringing them together on a single platform.

These latest accolades affirm CEAT Kelani’s commitment to aligning its business and HR strategies to nurture a truly happy workforce and sustain a culture built on shared values. With a strength of more than 1,000 employees – including over 150 who have dedicated two decades of service – the Company has consistently set benchmarks in employee engagement, retention and overall workplace wellbeing.

Transparent performance management systems, talent development initiatives, succession planning, career management programmes, and a healthy partnership with its Trade Union are integral to CEAT’s employee value proposition, the company said.

CEAT Kelani Chief Executive Officer and Managing Director Ravi Dadlani, ‘We also prioritise work-life balance and employee welfare through activities that extend to families, and implement HR policies that emphasise internal recruitment, job enrichment, job rotation, and career planning and provide special loan schemes for professional qualifications. Additionally, our robust recognition and rewards policy celebrates employees who deliver exceptional value through innovation.’

These elements have helped CEAT Kelani distinguish itself as an employer of choice in Sri Lanka and have earned the company a reputation for building a resilient and motivated workforce dedicated to driving innovation and growth.