Asianet Pakistan Private Limited

The Judicial Service Association of Sri Lanka (JSASL) has called on the Government to abandon its proposed constitutional amendment to extend the retirement age of Supreme Court and Court of Appeal judges, warning that the move would undermine judicial independence, disrupt career progression and weaken public confidence in the administration of justice.

In a letter to Minister of Justice Harshana Nanayakkara, the Association, which represents District Judges and Magistrates, said the proposal would effectively freeze promotions within the judiciary for about two years, delaying appointments to the superior courts and High Court while reducing career opportunities for judicial officers. It urged the Government to withdraw the proposal, arguing that doing so would help preserve judicial independence and public confidence in the justice system.

Saudi Arabia’s Foreign Ministry yesterday condemned attacks on the Kingdom saying it reserves the right to respond to the source of ‘the aggression’ and deter those responsible.

Saudi forces attacked Yemen’s Houthi-held city of Hodeidah on Friday in the latest escalation of their conflict during the regional war between the United States and Iran.

The port of Hodeidah is a crucial lifeline for the parts of Yemen under Houthi control, handling the bulk of commercial and humanitarian imports into Houthi-controlled northern Yemen.

Major-General Turki al-Maliki, spokesman for the Saudi-led coalition in Yemen, blamed the Houthis for the escalation, calling their attacks on Red Sea shipping ‘cowardly and reckless’.

Parliament’s Committee on Public Finance (CoPF) has raised concerns over whether the Finance Ministry’s Public Debt Management Office (PDMO) has the institutional capacity, governance framework, and specialist expertise required to manage Sri Lanka’s Rs. 31.1 trillion Government debt portfolio, while calling for a significant strengthening of the Office’s technical capabilities.

Reviewing the PDMO’s 2025 Annual Debt Management Report, CoPF members repeatedly questioned whether the Office, established under the Public Debt Management Act, No. 33 of 2024 and fully operational from December 2025, possesses the specialist skills needed to undertake sovereign debt management following the transfer of responsibilities from the Central Bank of Sri Lanka (CBSL).

Committee Chair MP Dr. Harsha de Silva opened proceedings by referring to the CoPF’s recently concluded investigation into the debt payment incident, telling officials the Committee had identified governance failures across multiple institutions and urging the office to strengthen its systems, governance structures, operational procedures, and technical controls.

He said Parliament had completed its work on the investigation and expected the Finance Ministry to report back on improvements to debt management processes.

During the review, MPs questioned the Office’s staffing structure, training programs, and operational readiness, arguing that debt management requires expertise comparable to that of professional treasury operations in international financial markets.

Committee members said even a 10-basis-point error in borrowing decisions could have significant financial implications for the Government while exposing officials to allegations over borrowing decisions, underscoring the need for specialised skills and stronger institutional safeguards.

The PDMO said it had undertaken training with International Monetary Fund (IMF) technical assistance and had identified capacity-building requirements, but acknowledged it did not possess a comprehensive Training Needs Assessment document.

The Committee said such an assessment was essential to guide recruitment, professional development, and future resource allocation, requesting the Office to submit the document within two weeks. The CoPF also indicated it would support increased Budgetary allocations for specialised training after reviewing the assessment.

Officials told the Committee the Office has an approved cadre of 80 staff, with around 60 positions currently filled, while one Assistant Director-General position remains vacant pending disciplinary proceedings involving the previous office holder. They said most executive-level positions had been filled, although additional recruitment remained necessary.

The Committee also questioned whether the Finance Ministry’s allocation of Rs. 2 million for training was sufficient for an institution responsible for managing billions of dollars in Government borrowing, with members arguing that investment in specialist training would yield significant savings by improving borrowing decisions. Officials said much of the training currently depended on grant assistance from international development partners.

The review also highlighted broader policy challenges facing the debt office.

PDMO officials said their medium-term strategy is to gradually reduce reliance on Treasury Bills, increase issuance of longer-term Treasury Bonds, and reduce external borrowing. However, Committee members questioned whether those objectives could be achieved while domestic interest rates remain elevated.

Officials acknowledged that successful implementation of the strategy would require closer coordination between fiscal and monetary authorities, although MPs argued the CBSL’s inflation-targeting mandate means the debt office cannot rely on monetary policy to reduce borrowing costs.

The Committee urged the PDMO to strengthen its own market expertise and institutional capacity to operate effectively under changing market conditions rather than depend on lower interest rates.

Total vehicle registrations moderated in June as lower registrations of two- and three-wheelers outweighed continued strength in the sports utility vehicle (SUV) segment, while several commercial vehicle categories recorded modest improvements, JB Securities said.

The brokerage said total vehicle registrations declined to 58,151 units in June from 62,776 in May. Despite the overall slowdown, it said passenger vehicle registrations remained resilient. Motor car registrations fell to 3,929 units in June from 4,738 in May, with both brand-new and pre-owned registrations easing during the month.

Brand-new car registrations declined to 998 units from 1,199 in May. BYD remained the leading brand with 519 registrations, led by the ATTO 1 (373) and Dolphin Dynamic (131). Perodua ranked second with 160 registrations, comprising the Bezza (82) and Axia (78), while BAW recorded 108 registrations of its E7 model and Kaiyi increased registrations to 56 units. Small cars accounted for 96.6% of all brand-new motor car registrations.

JB Securities said financing accounted for around 43% of vehicle purchases, adding that this may reflect dealers registering vehicles before they are sold to avoid the 90-day deadline, after which a penalty of 3% of a vehicle’s Cost, Insurance, and Freight (CIF) value is levied for each month of delay. It said the policy was introduced to discourage the accumulation of excessive inventories that could place additional pressure on the current account.

Pre-owned car registrations declined to 2,931 units in June from 3,539 in May. Suzuki remained the market leader with 987 registrations, driven by the Wagon R (764), Spacia (90), and Alto (76). Toyota followed with 767 registrations, led by the Roomy (382) and Yaris (315), while Nissan recorded 525 registrations, mainly the Dayz (385), and Daihatsu registered 433 units, dominated by the Mira (342). Small cars accounted for 96.4% of pre-owned registrations, while the financing share eased to 44% from 49.2% in May.

Premium passenger vehicle registrations edged down to 147 units in June from 152 in May. Brand-new premium registrations increased to 26 units, while pre-owned registrations moderated to 121 units. Mercedes-Benz remained the leading premium marque with 59 registrations across new and pre-owned vehicles, followed by Audi with 43, BMW with 27, and Lexus with 12.

JB Securities said registrations during the month included a Rolls-Royce Phantom EWB, a Bentley Bentayga, and a Ferrari 296 GTB. It said purchases of high-end vehicles continue to generate substantial Government revenue, with tax rates on many of these vehicles exceeding 200% of their import value.

SUV and crossover registrations increased to 5,933 units in June from 5,511 in May, making the segment the strongest-performing passenger vehicle category during the month. Growth was driven by brand-new registrations, which rose to 2,580 units from 1,929 in May, while pre-owned registrations eased to 3,353 units from 3,582.

Odiliya Homes and Residencies has appointed legendary Sri Lankan cricketer Lasith Malinga as its official Brand Ambassador, marking a significant milestone in the company’s strategy to strengthen its brand presence locally and internationally while promoting Sri Lanka as an attractive destination for real estate investment and premium hospitality.

Widely regarded as one of the greatest fast bowlers in the history of world cricket, Malinga has built a globally recognised reputation through his exceptional achievements, leadership, resilience, and winning mindset. The company believes these qualities closely reflect the values of the Odiliya Homes and Residencies brand, which is built on excellence, innovation, trust, and the delivery of world-class lifestyle experiences.

Odiliya Homes and Residencies Chairman Janath Rohitha said: ‘ICON is Sri Lanka’s first distinctive hotel brand developed by a real estate company. We are delighted to welcome Lasith Malinga to join us in taking the ICON brand to the global stage. Our ICON hotel portfolio, comprising ICON Mirissa, ICON Galle and ICON V Talpe, will continue to expand across the country in the years ahead. Having a true sporting icon such as Lasith Malinga represent our brand will further strengthen our international positioning while creating greater visibility for Sri Lanka’s tourism and real estate sectors.’

He further noted that the collaboration is expected to contribute towards attracting foreign investment and generating valuable foreign exchange earnings by showcasing Sri Lanka’s premium hospitality and real estate offerings to international markets.

Odiliya Homes and Residencies has established itself as a trusted name in Sri Lanka’s luxury property development sector through a portfolio of premium residential developments, hospitality projects and lifestyle investments. The company continues to focus on developing projects that combine architectural excellence, modern living, and long-term investment value while maintaining the highest standards of quality and customer satisfaction.

The appointment of Lasith Malinga as Brand Ambassador reflects the company’s long-term vision of enhancing its global brand recognition and positioning Sri Lanka as a destination for world-class property investment, luxury hospitality, and sustainable real estate development.

Providing a solution to the problematic situation that had arisen regarding the Kavadi dance in the annual Esala procession of the Devinuwara Upulvan Sri Vishnu Maha Devala, it was decided to permit all 45 Kavadi dance groups that joined the procession last year to participate this time too.

Public Security Minister Ananda Wijepala stated this following a special discussion held at the Matara District Secretariat yesterday.

Although the Police recommended removing the Kavadi dance item due to the unrest that arose in recent days regarding the security and discipline of the procession, steps were taken at this special meeting to grant the opportunity for traditional dance items of the procession in this manner through the agreement of all parties.

In addition to Public Security Minister, Inspector General of Police Priyantha Weerasooriya, Matara District Secretary Chandana Thilakarathne, and Senior Deputy Inspector General of Police in charge of the Southern Province Kithsiri Jayalath, along with a group of officials, participated in this occasion.

S and P Global Ratings has affirmed Sri Lanka’s long- and short-term foreign and local currency sovereign credit ratings at ‘CCC+/C’ with a stable outlook, citing expectations that economic growth and fiscal consolidation will continue despite mounting external risks.

The ratings agency said the stable outlook reflects its expectation that conditions supporting economic growth and fiscal repair will persist over the next six to 12 months, even as growth moderates and the current account returns to deficit.

However, it cautioned that risks to external demand, inflation, and financing conditions remain elevated, limiting the scope for a near-term improvement in Sri Lanka’s sovereign credit profile.

S and P also revised Sri Lanka’s transfer and convertibility assessment to ‘B-‘ from ‘CCC+,’ while maintaining that the country’s creditworthiness remains vulnerable but is no longer facing an immediate funding or payment crisis. It said continued official financing, together with the Government’s reform agenda, should support fiscal and external improvements.

The agency expects Sri Lanka’s economy to expand by 3.8% in 2026, slowing from 5.1% growth recorded in the first quarter, before recovering to 4.2% in 2027 as energy supply disruptions ease. It said higher fuel and input costs linked to the Middle East conflict could weigh on economic activity over the coming quarters, although Government measures to secure fuel and fertiliser supplies have helped contain the impact.

S and P said Sri Lanka remains more exposed than many regional peers to prolonged disruptions in global energy markets because of its dependence on imported fuel and fertiliser, limited storage capacity, and still-fragile external buffers following the 2022 economic crisis. It also warned that weaker tourism earnings and remittance inflows could add pressure if instability in the Middle East persists.

On the fiscal front, the agency said revenue performance has remained strong following the lifting of vehicle import restrictions and tax measures introduced under the International Monetary Fund (IMF)-supported reform program. It expects higher spending on post-disaster reconstruction and energy-related subsidies to widen the fiscal deficit to 5% of GDP in 2026 before narrowing towards 4% by 2029. Net general Government debt is projected at about 92% of GDP this year, declining to around 83% by 2029.

S and P said it expects the Government to continue implementing structural reforms under the IMF Extended Fund Facility (EFF) program, including revenue-based fiscal consolidation, cost-reflective utility pricing, and improvements to public financial management. It noted that the administration has maintained a strong commitment to the reform program despite some implementation delays.

The agency forecasts Sri Lanka’s current account will return to a deficit of 1.7% of GDP in 2026 as imports rise, although inflows from the IMF and other multilateral lenders are expected to partly offset the deterioration. It also noted that gross official reserves declined to $ 6.45 billion in June from $ 6.88 billion in May, while tourist arrivals fell nearly 10% in June and growth in remittances slowed.

S and P said it could raise Sri Lanka’s sovereign ratings if sustained economic growth leads to further improvements in fiscal and external metrics, strengthening the Government’s capacity to manage its debt obligations. Conversely, it said renewed funding or liquidity pressures arising from weaker fiscal or external performance could result in a downgrade.

The Consulate General of Sri Lanka in Milan, in collaboration with the Italian Foreign Trade Association and Club Asia, successfully organised a Business Forum titled ‘Discover Sri Lanka: Gateway to Trade and Investment,’ on 9 July in Milan.

It was conducted in a hybrid format, enabling both physical and virtual participation.

The primary objective of the Forum was to promote Sri Lanka Expo 2027, scheduled to be held in Colombo from 14-17 January 2027, while presenting the trade, investment, and business opportunities available in Sri Lanka to the Italian business community.

The Forum commenced with opening remarks by Sri Lanka Ambassador to Italy Satya Rodrigo. Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe addressed the Forum virtually from Colombo, reaffirming the Government’s strong commitment to fostering international trade and investment while extending an official invitation to the Italian business community to participate in Sri Lanka Expo 2027.

He further highlighted the recent policy reforms introduced by the Government to facilitate foreign investment, improve the ease of doing business, and create a more transparent, predictable, and investor-friendly business environment in Sri Lanka. The Deputy Minister also reiterated the Government’s firm political commitment to supporting foreign investors by ensuring policy consistency, enhancing investor confidence, and fostering long-term partnerships.

Following the Deputy Minister’s comprehensive remarks, Sri Lanka Export Development Board (EDB) Chairman presented the objectives of Sri Lanka Expo 2027 and outlined Sri Lanka’s export capabilities across a range of sectors. The Board of Investment of Sri Lanka (BOI) also made a comprehensive presentation on the country’s investment climate, strategic advantages, and incentives available to foreign investors.

An important highlight of the Forum was the presentation by Calzedonia Group (now rebranded as Oniverse) Director of Operations Riccardo Romani, who shared the company’s successful experience of investing and operating in Sri Lanka for over 25 years.

He emphasised Sri Lanka’s strategic importance to Calzedonia as the manufacturing hub for some of the Group’s most sophisticated and value-added production lines. He also commended the strong institutional support extended by the Government of Sri Lanka and its agencies, which has contributed to the company’s continued expansion and operational success in the country.

Romani further praised the Sri Lankan workforce for its dedication, adaptability, and strong learning capacity, noting that these qualities have been instrumental in maintaining the high standards of quality and innovation required by the Group’s global operations. His practical insights and positive assessment of Sri Lanka’s investment climate, manufacturing capabilities, and human capital generated considerable interest among the participants, providing a compelling endorsement of Sri Lanka’s attractiveness as a destination for long-term foreign investment.

Italian Foreign Trade Association Secretary General David Doninotti, Club Asia Chairman Marco Bettin, and the CNA World Honorary President Indra Perera were among the distinguished speakers from the Italian side. Consul General of Sri Lanka in Milan Dulmith Waruna delivered the vote of thanks on behalf of the Consulate General, expressing appreciation to all participants and distinguished speakers who joined the Forum both physically and virtually. The Forum was moderated by Minister Counsellor Tharaka Botheju of the Consulate General.

The overall response from the participants was highly encouraging. The Italian business representatives expressed strong appreciation for the comprehensive presentations and welcomed the opportunity to gain first-hand information directly from the relevant Sri Lankan authorities. In particular, Sri Lanka Expo 2027 received positive recognition, with several participants describing it as an important platform to identify reliable business partners, explore sourcing opportunities, and establish commercial relationships with Sri Lankan companies. Many participants expressed interest in receiving further information on the Expo and indicated their intention to explore participation either individually or through business associations.

The Forum also strengthened the existing collaboration between the Consulate General and its institutional partners, namely Club Asia, while creating new opportunities to engage the Italian private sector in Sri Lanka’s trade promotion initiatives.

The event concluded with a networking session, allowing Italian business representatives to interact with the Consulate General officials, exchange contacts, and discuss potential avenues for future cooperation. Overall, the Forum successfully achieved its objectives of promoting Sri Lanka Expo 2027, enhancing awareness of Sri Lanka’s trade and investment potential and generating encouraging interest among the Italian business community in strengthening economic engagement with Sri Lanka.

Merchants from Galle to Jaffna open their doors to one of the world’s largest card networks

As one of Sri Lanka’s largest state-owned banks completes one of the country’s largest UnionPay acquiring deployments, merchants from Galle to Jaffna open their doors to one of the world’s biggest card networks – and a new chapter in the Bank’s digital banking journey.

People’s Bank has switched on UnionPay acquiring across its full network of more than 14,000 point-of-sale (POS) terminals, the Bank announced recently. With the activation, the Bank’s merchant partners – from leading supermarkets and hotel chains to fuel stations, pharmacies and small neighbourhood retailers – can now accept UnionPay cards issued in over 80 markets worldwide.

The deployment is one of the largest single UnionPay acquiring rollouts in Sri Lanka and a flagship milestone in People’s Bank’s digital transformation program.

People’s Bank Chief Executive Officer/General Manager Clive Fonseka said: “This is a defining moment in People’s Bank’s digital journey. For years, our promise to the nation has been access – to credit, to savings, to the formal economy. Today we extend that promise to the world’s cardholders. Every shop, hotel and restaurant on our network is now ready to welcome UnionPay customers from China, Singapore, Malaysia, the Gulf and beyond, with a single tap, swipe or insert.”

A digital bank in step with a recovering economy

The UnionPay rollout caps a multi-year program that has repositioned People’s Bank as one of Sri Lanka’s most progressive digital banking franchises. Recent milestones include:

nModernised core banking platform enabling real-time processing across branches, ATMs and digital channels

nNext-generation mobile banking app with biometric login, cardless ATM withdrawal and instant fund transfers

nQR-based merchant payments rolled out to thousands of small and mid-sized retailers

nContactless and tap-to-pay upgrades on the Bank’s POS estate

nExpanded card and acquiring infrastructure to support tourism, exports and the remittance economy

UnionPay – issued in 80-plus markets and accepted in 180-plus countries and regions worldwide- sits naturally at the centre of that strategy as Sri Lanka welcomes back a record tourism season and renewed foreign investment.

Zero-friction for merchants, instant access for visitors

For the Bank’s 14,000-plus merchant partners, the upgrade is automatic. Existing People’s Bank POS terminals have been enabled with UnionPay acceptance, requiring no additional hardware, no new merchant agreement and no downtime. Settlement, reconciliation and dispute handling are managed centrally by the Bank.

For inbound travellers and overseas Sri Lankans carrying UnionPay cards, the change removes one of the most common frictions in a foreign trip – being unable to pay. A souvenir boutique in Galle Fort, a restaurant in Pettah, a fuel stop in Nuwara Eliya, a hotel in Trincomalee: wherever a People’s Bank terminal is present, UnionPay now works.

The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) has welcomed the decision by the Office of the US Trade Representative (USTR) to place Sri Lanka among the countries subject to a 10% tariff under the recently concluded Section 301 investigations, describing the outcome as a significant boost to the country’s rubber products export sector.

The decision ensures Sri Lanka remains on par with several key competitor nations, helping preserve the competitiveness of Sri Lankan rubber products in one of the country’s most important export markets. Initial indications suggested Sri Lanka could have faced a higher tariff rate, which would have placed exporters at a disadvantage in an increasingly competitive global marketplace.

The announcement follows a period of evolving US trade measures over the past 18 months. The initial 44% reciprocal tariff announced in April 2025 was subsequently revised to 30% and later to 20%, with Sri Lanka ultimately being subject to a 10% tariff rate. Throughout this period, the Government of Sri Lanka maintained close engagement with US authorities to protect and advance the country’s export interests.

On behalf of the rubber products industry, the SLAMERP extends its sincere appreciation President Anura Kumara Dissanayake, the Government of Sri Lanka, Sri Lanka Ambassador to the US Mahinda Samarasinghe, the Embassy of Sri Lanka in Washington, the Foreign Affairs Ministry, the Department of Commerce, the Export Development Board, and all officials who worked tirelessly through continuous dialogue and high-level engagement to secure this favourable outcome.

SLAMERP Chairman Pushpika Janadheera said: ‘This is a significant achievement for Sri Lanka’s export manufacturing sector and particularly for the rubber products industry. In global markets, buyers compare sourcing destinations based on quality, reliability, and cost. Securing tariff parity ensures Sri Lanka remains a competitive choice for international customers while reinforcing confidence in our manufacturers and the country’s long-term export potential.’

The US remains one of Sri Lanka’s largest export destinations for value-added rubber products, including industrial and medical gloves, tyres, solid tyres, industrial rubber goods, natural rubber mattresses and pillows, and many other specialised rubber products. The sector is among Sri Lanka’s leading export industries, generating valuable foreign exchange, supporting hundreds of thousands of livelihoods across the rubber value chain, and contributing significantly to the country’s manufacturing economy.

The SLAMERP noted that the decision provides greater certainty for exporters at a time of evolving global trade dynamics while strengthening investor confidence and supporting long-term business relationships with international customers.

The Association also highlighted that the successful outcome demonstrates the value of close collaboration between the Government and the private sector in addressing issues that directly impact Sri Lanka’s export competitiveness.

The SLAMERP reaffirmed its commitment to working closely with the Government and industry stakeholders to strengthen market access, enhance the competitiveness of Sri Lanka’s rubber products industry, and contribute to sustainable export-led economic growth.