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China Merchants Port Holdings Company Ltd., the Sri Lanka Ports Authority (SLPA), and Access Engineering PLC have agreed to abandon the South Asia Commercial and Logistics Hub (SACLH) project in Port of Colombo. Under the settlement, the three partners will get back about $ 29.8 million of the $ 37.1 million they had invested.

The Hong Kong-listed port operator said last week that the parties had signed a settlement agreement. The agreement ends the Shareholders Agreement, the Build-Operate-Transfer (BOT) Agreement, and the Site Lease Agreement early, and settles all matters relating to the project with immediate effect.

The Daily FT reported in April 2023 that the investment in the project was $ 392 million, when agreements for the hub were signed in Colombo. The project was billed at the time as the largest commercial and logistics complex in South Asia. It was a public-private partnership to be built in the centre of Port of Colombo, with 530,000 cubic metres of storage capacity in an eight-floor building. It was to be developed as a 50-year BOT project. Under that model, a private investor builds and runs an asset for a fixed period before handing it back to the State.

The project company, SACL, is 70% owned by China Merchants Port’s wholly-owned subsidiary FCGL, while Access Engineering and the SLPA hold 15% each. According to SACL’s audited financial statements as at 31 December 2025, the shareholders had contributed $ 37.1 million in cash: $ 26 million from FCGL and $ 5.6 million each from Access Engineering and the SLPA.

Under the settlement, the SLPA has agreed that a $ 26 million investment made by SACL’s shareholders is payable to them, after deductions for tax and late payment liability. The SLPA has already paid a value added tax (VAT) liability of $ 3.9 million to the Inland Revenue Department and will move to settle a further $ 195,000 in late payment liability. The SLPA will pay the remaining $ 21.9 million to SACL as a one-time lump sum within 30 days of the date of the settlement agreement.

SACL will also distribute about $ 7.85 million in cash, which its audited accounts showed as distributable at the end of 2025.

Both sums will be shared in proportion to shareholdings. FCGL will receive about $ 20.8 million, and Access Engineering and the SLPA will receive about $ 4.5 million each. FCGL will therefore recover about $ 5.2 million less than its $ 26 million contribution, and Access Engineering about $ 1.1 million less than its $ 5.6 million.

China Merchants Port said it had reassessed the project in view of changes in external circumstances. These included adjustments to the project’s implementation environment and timetable, as well as the parties’ respective commercial considerations. It concluded that ending the project would be in the best interests of all parties. The settlement was proposed after discussions with the Government, on the principles of ‘amicable consultation and neutral handling.’

The company’s Board, including its Independent Non-Executive Directors, said the terms were normal commercial terms, fair and reasonable, and in the interests of shareholders as a whole.

The partners will now take steps to strike off or, if applicable, wind up SACL. They will share the related costs in the same 70:15:15 ratio.

Under Hong Kong’s Listing Rules, the SLPA counts as a connected person of China Merchants Port at the subsidiary level. This is because the SLPA also holds 15% of Colombo International Container Terminals (CICT), which manages Port of Colombo’s South Terminal and in which China Merchants Port holds the remaining 85%. The settlement is therefore a connected transaction. However, all of the transaction’s applicable percentage ratios are below 1%, so it is exempt from reporting, announcement, and independent shareholder approval requirements. Early termination of the original agreements does require disclosure.

Pan Asia Bank recently participated in the FinLit Expo 2026, reaffirming its commitment to promoting financial awareness and responsible banking.

The FinLit Expo is a national initiative organised by the Central Bank of Sri Lanka (CBSL) to strengthen financial literacy and encourage informed financial decision-making among Sri Lankans. Held on 8-9 October at the Centre for Banking Studies in Rajagiriya, the exhibition brought together institutions from across the financial services industry to improve public understanding of banking, financial products and services and the importance of sound financial management.

Pan Asia Bank Director/CEO Naleen Edirisinghe attended the event alongside members of the Bank’s team, demonstrating the Bank’s support for a collective effort to make financial knowledge more accessible to the public. Commenting on the importance of financial literacy, he said: ‘Financial literacy is an essential life skill that enables people to make informed choices, manage their money responsibly and plan with greater confidence for the future. At Pan Asia Bank, we believe that responsible banking extends beyond providing financial services to helping people build the knowledge and confidence they need to navigate an increasingly complex financial environment. Initiatives such as FinLit Expo provide a valuable platform for the industry to work together towards this goal.’

The Bank collaborates with industry stakeholders and community partners on a range of such initiatives that promote financial awareness, strengthen financial inclusion and create a meaningful, lasting impact on society. From household budgets and developing savings habits to understanding borrowing obligations and evaluating financial choices, financial knowledge can help individuals and families make decisions that support their economic security.

As digital banking and electronic payment methods become increasingly integrated into everyday transactions, understanding the safe and responsible use of financial technology is equally important. Greater awareness of digital security, fraud prevention and responsible borrowing can help consumers navigate an expanding range of financial services with confidence.

Pan Asia Bank recognises that advancing financial literacy requires sustained collaboration among financial institutions, regulators and other stakeholders. Through its participation in FinLit Expo 2026, the Bank supports the broader industry effort to strengthen public understanding of financial services, encourage responsible financial behaviour and promote wider, more informed participation in Sri Lanka’s financial system.

The Central Bank of Sri Lanka (CBSL) has purchased more than $ 8 billion from the domestic foreign exchange market over the past four years. The purchases were made possible by the country earning more than it spent, a senior official said, as the CBSL turns to financial sector reform, payments, and financial literacy to support growth.

‘It was possible for us to purchase more than $ 8 billion over the past four years because the country generated surpluses,’ CBSL Senior Deputy Governor Dr. Chandranath Amarasekara said. He was speaking at The Ceylon Chamber of Commerce’s Sri Lanka Economic and Investment Summit (SLEIS) 2026 last week.

Reserves stood at $ 6.9 billion at end-September, he said. CBSL Governor Dr. Nandalal Weerasinghe said in August that he aimed to raise gross foreign exchange reserves to about $ 8 billion by end-2026, from roughly $ 6.6 billion at the time.

Dr. Amarasekara attributed the surpluses largely to the economy’s resilience and to earnings from merchandise and services exports, including tourism.

He said the CBSL’s mandate under the new Central Bank Act is to maintain price stability and financial stability, laying a stable base on which businesses and households can operate. However, he said the CBSL also has a ‘vested interest’ in the economy doing well. ‘It is in our interest to make sure that these flows come in, that investment takes place and that there is sustainable growth in the economy,’ he said.

To that end, he said the banking and financial sector must work more efficiently than it does now. Global finance is changing and technology adoption is rapid, and local progress has not been enough. The CBSL will work with the financial sector so that it can meet the needs of a growing economy.

On payments, Dr. Amarasekara noted that the world is moving away from cash. He said the CBSL has a key role in improving the efficiency of the payment system and, with the financial and private sectors, in promoting easier payment methods with lower transaction costs.

He also flagged a gap in financial literacy, the focus of the current Financial Literacy Month. Even as the financial system talks of advanced technologies, he said, Sri Lankans continue to fall victim to some of the worst financial scams. ‘Sri Lankans’ literacy may be high, but financial literacy is quite low,’ he said, adding that the CBSL is addressing the issue with financial sector participants.

The CBSL is also researching areas outside traditional central banking that affect its mandate, including supply-side constraints, climate change, and productivity, and is sharing its findings with the public.

‘Unlike in the past, we do not want to rely on short-term stimulus from the CBSL or the Treasury,’ Dr. Amarasekara said. He added that appropriate reforms were essential to achieve sustained high growth, which the CBSL would always support.

Bank of China Colombo branch last Thursday became Sri Lanka’s first renminbi (RMB) clearing bank, formally launching operations that allow trade and investment with China to be settled directly in the Chinese currency, rather than through the US dollar.

The branch was authorised as a clearing bank by the People’s Bank of China (PBOC), China’s central bank. Central Bank of Sri Lanka (CBSL) Deputy Governor K.G.P. Sirikumara said the move would strengthen the connection between Sri Lanka’s banking system and China’s financial system. He cautioned, however, that the facility’s benefits hinge on how widely it is adopted.

‘The success of this initiative will depend not only on establishing the facility, but also on how widely it is used,’ Sirikumara said at the launch.

An RMB clearing bank is a lender designated by the PBOC to process, clear, and settle RMB transactions outside mainland China.

Until now, local lenders handling RMB went through banks in China. ‘Previously, domestic interbank RMB transfers in Sri Lanka generally had to be routed through correspondent bank accounts in China. This could involve additional processing time and intermediaries,’ Sirikumara said.

Banks and businesses can now maintain RMB accounts with the clearing bank, make cross-border RMB payments with China, and settle RMB payments locally. He said this was expected to improve efficiency, lower transaction costs, and make transfers more convenient. Importers also stand to avoid converting rupees into US dollars and then into RMB, a process CBSL Governor Dr. Nandalal Weerasinghe has said raises costs and exposes traders to multiple exchange rate risks.

The potential gains are significant given the scale of trade with China, Sri Lanka’s largest source of imports. Imports from China totalled $ 5.15 billion in 2025, up 16% year-on-year, while exports rose 10% to $ 279 million, according to Export Development Board data. Sirikumara said RMB settlement could simplify payment arrangements and open access to a wider range of RMB banking and financing services. Over time, he said, it could also support greater trade and investment.

He also pointed to a potential link with China’s Cross-Border Interbank Payment System (CIPS), which processes cross-border RMB payments through standardised payment messaging and settlement arrangements. He said the clearing bank could help Sri Lankan financial institutions explore access to it. Former Chinese Ambassador Qi Zhenhong told an earlier RMB Internationalisation Forum in Colombo that the CIPS had 1,729 participants, covering over 5,000 licensed banking institutions across 189 countries and regions. Sirikumara said the idea of an RMB payment facility between the two countries was first discussed at that forum.

Sirikumara called on commercial banks to engage with the clearing bank, explore its services, and build awareness among customers. He also urged importers and exporters to assess whether settling in RMB would be suitable and cost-effective for their businesses. The CBSL will work closely with the PBOC, Bank of China, and licensed banks to ensure the arrangement runs smoothly, he added.

Sri Lanka’s designation forms part of a wider expansion of China’s clearing network this year. The PBOC authorised Bank of China’s London branch as the UK’s RMB clearing bank in February, a month before the Colombo branch. It has since named clearing banks for Indonesia in June and Frankfurt in August.

The National System Operator (NSO) yesterday said a generator failure triggered an islandwide blackout on Saturday (17), collapsing the country’s national power grid within 30 seconds and prompting an investigation into the sequence of events. The outage occurred at around 11:43 a.m., with the operator noting that a generator’s automatic disconnection under abnormal conditions should not ordinarily cause a complete system collapse.

In a statement issued, it noted that restoration began shortly after the outage, with the main hydroelectric generators reconnected by 12:11 p.m. and the system restarted across four sections. Essential services, including major hospitals, water treatment plants, and airports, had their electricity restored by 3 p.m., while all grid substations were reconnected by 5 p.m., restoring supply to most consumers.

The Norochcholai coal-fired power plant is expected to remain offline for several days, removing 810 MW of capacity from the grid. The NSO stated maximum hydropower generation, supported by prevailing rainfall, and relatively lower demand should help maintain supply with minimal disruption, while an internal investigation examines the cause of the grid collapse.

Indra Traders Ltd., the sole agent for FOTON in Sri Lanka, has further strengthened its commitment to FOTON customers with the official opening of its new FOTON Service Centre in Ja-Ela.

The new facility brings dedicated FOTON servicing, repairs, diagnostics, genuine spare parts and technical support closer to a growing number of commercial vehicle operators.

For businesses that depend on their vehicles every day, vehicle downtime directly affects productivity and income. The new Ja-Ela Service Centre is therefore designed with one clear objective – to help FOTON customers keep their vehicles on the road and their businesses moving.

FOTON’s presence in Sri Lanka has continued to expand, with Indra Traders currently supplying 114 FOTON Metro buses for the country’s public transport sector. As the number of FOTON vehicles operating across Sri Lanka increases, the need for reliable and accessible after-sales support becomes even more important.

The Ja-Ela Service Centre is part of Indra Traders’ ongoing investment in strengthening FOTON’s after-sales infrastructure, ensuring customers have access to professional technical support and genuine FOTON solutions when they need them. To meet these growing demands, the facility provides comprehensive solutions including scheduled servicing and preventive maintenance, repairs and diagnostics, genuine FOTON spare parts, direct technical support from trained FOTON technicians, and dedicated after-sales support for all FOTON customers.

The opening of the Ja-Ela Service Centre also marks another milestone in the long-standing partnership between Indra Traders and FOTON, which began in 2006.

Over nearly two decades, the partnership has evolved alongside the changing needs of Sri Lanka’s commercial vehicle market. From introducing FOTON vehicles to Sri Lankan operators to providing ongoing parts, servicing and technical support, Indra Traders has continued to build the infrastructure required to support the brand’s growing customer base.

With the addition of Ja-Ela, Indra Traders is further strengthening its ability to support FOTON customers not only when they purchase a vehicle, but throughout the vehicle’s operating life. The new Ja-Ela Service Centre reinforces Indra Traders’ commitment to ensuring FOTON customers receive dependable after-sales support, helping reduce unnecessary downtime and maintain vehicle performance.

Speaking on this occasion, Indra Traders Ltd., Managing Director Rushanka Silva stated, ”Indra Traders entered into an agreement with Foton Motors of China in 2006. Nearly 20 years have passed since signing that agreement with Foton. We first introduced Foton vehicles to Sri Lanka in 2008. Although the agreement was signed in 2006, it took two years to introduce a vehicle because we spent that time studying the vehicles suited for the local market. The Foton truck models introduced to Sri Lanka by our company in the early days are still in use by customers today, with the Foton small truck (Foton Double) being particularly notable – largely due to the excellent after-sales service and spare parts we provided.

‘Indra Traders is a company that has earned high customer trust over five decades. We established this location with the goal of introducing large vehicles. Our largest vehicle measures over 12 meters, requiring a location with much more space than usual for service operations. In addition, another sales centre is scheduled to open in the Kelaniya area. We have already stocked spare parts valued at over Rs. 200 million. It is our core belief that after selling a vehicle, providing reliable after-sales service is essential.’

The Ja-Ela facility further expands Indra Traders’ FOTON service network and represents another step towards creating a stronger, more accessible and customer-focused after-sales experience for FOTON owners across Sri Lanka.

Two 10-member business delegations from India, representing the Confederation of Indian Industry (CII) and the Cochin Chamber of Commerce and Industry (CCCI), visited Colombo to participate in the Sri Lanka Economic and Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October.

The visits provided an opportunity to explore trade and investment opportunities in Sri Lanka, strengthen business-to-business (B2B) linkages, and promote greater economic engagement between India and Sri Lanka.

The CII delegation, comprising representatives from diverse sectors including healthcare and pharmaceuticals, solar energy, information technology, manufacturing, and footwear, held a series of meetings with key stakeholders in Sri Lanka. These included Energy Minister Anura Karunathilaka, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, and senior officials of the Board of Investment (BOI) and Export Development Board (EDB) of Sri Lanka. Discussions focused on investment opportunities, trade prospects, and potential business collaborations across sectors of mutual interest.

The CCCI delegation, representing sectors such as healthcare, logistics, building materials, business consultancy, information technology, and tourism, also held a series of engagements with Sri Lankan stakeholders. The delegation met Deputy Minister Abeysinghe and senior officials of the BOI. The delegation also held B2B meetings with various Sri Lankan companies to explore potential business partnerships and opportunities for collaboration. As part of its visit, the delegation toured the manufacturing facilities of Nestlé and Elephant House to gain first-hand exposure to industrial operations in Sri Lanka.

Both delegations also called on Indian High Commissioner Santosh Jha. During the interactions, the High Commissioner shared his perspectives on the Sri Lankan economy and the growing opportunities for Indian businesses in Sri Lanka. He encouraged the visiting companies to deepen their engagement with Sri Lankan counterparts, establish business partnerships, and explore opportunities for trade and investment.

The visit of the CCCI delegation also forms part of the High Commission’s ongoing efforts to strengthen economic and commercial engagement with Sri Lanka at the regional and sub-national levels, by facilitating greater interaction between regional business chambers and enterprises from different parts of India and their Sri Lankan counterparts. In this context, it may be recalled that business delegations from the South Gujarat Chamber of Commerce and Industry (SGCCI) and the Tamil Nadu State Council of the Indian Chamber of Commerce (ICC) had also visited Sri Lanka earlier this year.

The CCCI and The Ceylon Chamber of Commerce also signed a Memorandum of Understanding (MoU) on the sidelines of the Sri Lanka Economic and Investment Summit 2026 to strengthen trade and business cooperation between Kerala and Sri Lanka. The MoU was signed by CCCI Past President and Executive Committee Member C.S. Kartha and The Ceylon Chamber of Commerce President Krishan Balendra. The MoU envisages enhanced business engagement, with a view to promoting closer commercial ties and mutually beneficial business opportunities.

The visits of the two delegations underscore the continued efforts to strengthen India-Sri Lanka economic and commercial ties through enhanced B2B engagements and institutional partnerships.

Verité Research yesterday said it played a notable role at the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank (WB) Group in Bangkok, driving strategic dialogues on debt, inequality, and governance through policy roundtables, high-level investor briefings, and multilateral stakeholder engagements.

The Verité Research delegation to the Annual Meetings, held from 12 to 18 October, included Executive Director Dr. Nishan de Mel, Corporate Director – Strategic Planning Inoshini Perera, and Lead Economist Raj Prabu Rajakulendran.

During the Meetings, the think tank convened two roundtables, co-sponsored two Civil Society Policy Forum (CSPF) sessions, served on expert panels in closed-door discussions, and met with IMF, Government, donor, and civil society counterparts. The delegation also conducted technical briefings for international sovereign debt investors on Sri Lanka’s economic outlook and IMF program implementation.

The first side-event roundtable examined how Governance-Linked Bonds, a novel sovereign debt instrument designed by Verité Research for Sri Lanka as a world first, could be applied to other debt-vulnerable nations. The second roundtable explored structural safeguards to protect democratic governance within IMF programs, addressing concerns that reform frameworks can inadvertently bypass parliaments, judiciary bodies, and independent national institutions.

As part of the CSPF, the civil society track of the official IMF-World Bank program, Verité Research co-sponsored sessions focusing on fiscal transparency and accountability across the Asia-Pacific region, alongside multilateral responses to nations facing severe debt burdens.

Additionally, the delegation participated in closed-door roundtables with international debt managers, legal experts, and development partners to address hidden fiscal risks operating outside headline public debt statistics. The team also contributed to a panel on policy advocacy in Asia at a partner foundation’s forum, and provided media commentary on Sri Lanka’s fiscal accountability structures.

There is an unsettling, yet unnecessary, controversy brewing over the Court of Appeal’s decision to invalidate the presidential pardon granted to Galaboda Aththe Gnanasara, who must now serve the remainder of his five-year prison sentence. The ruling has provoked protests from sections of the Buddhist clergy, who appear to regard his saffron robe as grounds for exceptional treatment. Yet, beneath the noise and political grandstanding lies a fundamental question as to whether the robe that symbolises renunciation, compassion and moral discipline becomes a shield for criminality?

The answer must be an unequivocal no. The principle that all citizens are equal before the law is the cornerstone of any democratic society. Neither political office, social standing nor religious affiliation can confer immunity from its reach. A Buddhist monk, no less than an ordinary citizen, is accountable for his actions. Indeed, those who voluntarily embrace a religious vocation and assume the moral authority that accompanies it should be held to particularly high standards of conduct. To demand preferential treatment for a convicted individual simply because he wears the saffron robe is to undermine the very foundations of justice.

The controversy surrounding Gnanasara’s appearance in Court wearing the national dress rather than his religious robes is equally revealing. Why should the clothing worn by a convicted person become a matter of such intense public agitation? If the robe is a sacred symbol of the Buddha’s teachings, its sanctity must derive from the conduct of the person wearing it, not from the garment itself. A change of attire does not diminish Buddhism. What diminishes Buddhism is the spectacle of religious figures invoking their robes to evade the consequences of their actions.

If a monk has been convicted of a criminal offence, the relevant religious authorities should examine whether his conduct is compatible with the obligations of the Sangha. Where the circumstances and applicable disciplinary rules warrant it, appropriate action, including removal from monastic status, should follow. The robe must not become a permanent badge of religious authority for individuals whose conduct brings the Buddhist order into disrepute.

Similar concerns arise in the case of the Attamasthanadhipathi, Pallegama Hemarathana who is alleged of sexually abusing underage girls. Such allegations must be investigated fairly, and guilt must be established through due process. The religious institutions, on the other hand, have a duty to take appropriate disciplinary measures in accordance with the law and their own rules. Protecting children and preserving the integrity of the Sangha cannot be subordinated to institutional embarrassment or misplaced loyalty.

Buddhist rulers, including Emperor Ashoka and King Parakramabahu I, are associated with efforts to strengthen monastic discipline and address corruption within the Sangha. Their historical contexts differed considerably, but the underlying principle remains relevant that the preservation of Buddhism requires the preservation of ethical standards among those who represent it.

The Sangha is not strengthened by defending every individual who wears its robes. It is strengthened by distinguishing genuine spiritual commitment from the exploitation of religious status for personal power, political influence or immunity from accountability. In this context, the protests demanding Gnanasara’s release do little to advance Buddhism’s interests. Instead, they risk reinforcing public perceptions that sections of the clergy consider themselves above the law. Political leaders, too, must resist the temptation to exploit religious sentiment for electoral advantage through preferential pardons or pressure on judicial institutions.

Belt and Road Initiative Sri Lanka (BRISL) will today (19) kick off a two-day undergraduate seminar titled ‘Sri Lanka and the Belt and Road Initiative: Building Synergies for Sustainable Development’ at Amari Colombo.

It will bring together 25 undergraduate students from the University of Colombo, University of Sri Jayewardenepura, and University of Kelaniya, representing the disciplines of Economics, Business Economics, International Relations, and International Studies.

The initiative aims to deepen students’ understanding of China’s Belt and Road Initiative (BRI), its implications for Sri Lanka’s economic development, and emerging opportunities in trade, investment, infrastructure, connectivity, and international cooperation.

The two-day program will feature discussions led by distinguished academics, diplomats, and development experts, including Prof. Sirimal Abeyratne, Dr. George I.H. Cooke, Admiral (Prof.) Jayanath Colombage, Dr. Palitha T.B. Kohona, and Dr. Vagisha Gunasekara.

BRISL Director Maya Majueran will deliver a presentation titled ‘High-Quality BRI and Sri Lanka: Unlocking New Pathways for Sustainable Development.’

The sessions will explore the historical and diplomatic dimensions of the BRI, Sri Lanka’s strategic autonomy in the Indian Ocean, development financing, debt restructuring, economic opportunities, and human resource development.

A key feature of the seminar will be educational visits to Huawei Technologies Lanka, Port City Colombo, and Colombo International Container Terminals (CICT), offering participants first-hand exposure to digital technologies, major infrastructure investments, port operations, and Sri Lanka’s evolving role as a regional trade and logistics hub.

The program is designed to bridge academic learning with practical experience while encouraging informed discussion of both the opportunities and challenges associated with the BRI.

Participants will be nominated by their respective universities based on academic merit, ensuring meaningful engagement among undergraduate students.

The seminar will conclude with a certificate presentation and closing dinner tomorrow (20), attended by representatives of the Embassy of the People’s Republic of China in Sri Lanka.

Through this initiative, BRISL seeks to strengthen academic engagement, encourage knowledge sharing, and provide young Sri Lankans with greater exposure to international economic cooperation and sustainable development opportunities.