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People’s Bank has relocated its Vaharai Service Centre, further strengthening its commitment to providing convenient, accessible and modern banking services to the people of Vaharai.

The newly relocated Service Centre, operating under the People’s Bank Valaichenai Branch, offers improved facilities together with a wide range of banking services, including digital banking solutions, business loans, SME loans and development loans, enabling customers to access comprehensive financial services closer to home.

The inauguration ceremony was attended by People’s Bank Assistant General Manager – Channel Management R. Ravikaran, Vaharai Divisional Secretary K. Amaliney, Vaharai Pradeshiya Sabha Chairman K. Theiventhiran, Batticaloa Regional Manager K. Kodeeswaran, Assistant Regional Managers N. Thineshkumar and S. Moganathas, Valaichenai Branch Manager R.M. Vishnuvarthanan, Vaharai Service Centre Manager T. Prashanthan, along with bank staff, customers and other invited guests.

The Colombo stock market opened the week in green barely holding onto to an early session rally.

The ASPI opened strong, gaining more than 135 points and peaking at 21,310.55 in early trading, but declined thereafter to close up 0.07% or 14.38 points at 21,187.22. The active S and P SL20 closed up 0.10% or 6.18 points at 5,948.74.

With 113 counters closing in green against 90 in red, the ASPI was buoyed by contributions from JKH, DIAL, SPEN, SEMP and HNB.

Market turnover was over Rs. 2 billion on over 65.1 million shares traded and foreign investors were net buyers on a net inflow of Rs. 15.7 million.

First Capital Research said investor sentiment was primarily supported by the sharp decline in global oil prices, which eased concerns over inflationary pressures and reduced input cost expectations. Sentiment was further supported by easing US-Iran tensions.

HNW investors were the primary contributors to today’s turnover, which remained at a relatively high level. Meanwhile, retail investor participation was slightly above the average, reflecting continued broad-based market interest.

The capital goods sector led the daily turnover with a share of 42%, followed by the banking, and food beverage and tobacco sectors collectively contributing 39%.

NDB Securities said crossings were witnessed in John Keells Holdings and Hatton National Bank, with Hayleys accounting for 50.3% of turnover.

Mixed interest was observed in Sampath Bank, Nations Trust Bank and Ceylon Cold Stores, whilst retail interest was noted in Industrial Asphalts, LVL Energy Fund and LOLC Finance.

The capital goods sector was the top contributor to market turnover due to John Keells Holdings and Hayleys, whilst the sector index gained 0.77%. The share price of John Keells Holdings increased by 20 cents to close at Rs.19.80 and Hayleys closed flat at Rs.225.

The banking sector was the second-highest contributor to market turnover due to Sampath Bank, Hatton National Bank and Nations Trust Bank, whilst the sector index edged down by 0.03%. The share price of Sampath Bank lost 25 cents to close at Rs.136.75, while Hatton National Bank moved up Re. 1 to Rs.386 and Nations Trust Bank edged down 25 cents to 305.

The 2027 deadline and the structural reserve gap

Sri Lanka is rapidly approaching a critical financial juncture. Following the 2022 default, bilateral creditors and International Sovereign Bond (ISB) holders granted temporary debt service relief, providing a grace period that effectively postpones major principal amortisation. However, this window closes in 2027-2028. Under the debt restructuring agreements and the IMF’s Debt Sustainability Framework (DSF), Sri Lanka’s external public debt servicing-covering official bilateral loans, restructured commercial bonds, and multilateral obligations-will jump to approximately $4.5 billion to $5 billion annually, anchored to an IMF target capping annual foreign currency debt service at 4.5% of GDP.

Against this upcoming obligation stands a structural buffer gap:

n The reality of current reserves: While Gross Official Reserves (GOR) have recovered to roughly $6.5 to 6.8 billion, a significant portion remains locked or conditionally restricted-most notably the $1.4 billion Peoples Bank of China (PBOC) swap, which carries strict usability caveats linked to import coverage. Net usable foreign exchange buffers hover closer to $5.0 to 5.3 billion.

n The reserve adequacy deficit: To safely absorb external shocks, maintain international market confidence, and cover 3 to 4 months of essential national imports (which require roughly $1.6 billion to $1.8 billion monthly), Sri Lanka requires a net reserve cushion of at least $10 billion to $12 billion.

n The structural gap: This leaves an active reserve deficit of $4.5 billion to $5.5 billion that must be built before full-scale commercial repayments resume.

To bridge this gap, the Central Bank of Sri Lanka (CBSL) is forced to act as an aggressive net buyer of foreign exchange from domestic banking channels. However, when the Central Bank consistently mops up dollars from commercial banks to build state reserves, it extracts foreign currency liquidity from the domestic market. Unmanaged, this structural squeeze places continuous downward pressure on the Sri Lankan Rupee, creating a sharp tension between building reserves for debt repayment and preserving currency stability.

Managing exchange rate volatility to prevent social upheaval

Currency depreciation in an import-dependent economy acts as a direct tax on the public.

Sudden exchange rate slides quickly translate into higher pump prices for fuel, elevated electricity tariffs, and costlier food items.

In Sri Lanka’s fragile post-crisis socio-political landscape, severe currency swings are a major driver of domestic discontent. To keep political turmoil at bay while adhering to a flexible exchange rate regime, the government must avoid two policy extremes:

1. The trap of the Hard Peg: Depleting foreign reserves to artificially defend an unsustainable exchange rate-as seen prior to April 2022-is no longer an option.

2. Uncontrolled free-floating: Leaving the thin domestic market entirely to speculative forces risks sharp overshooting and panic buying.

The middle path: A transparent, rule-based intervention mechanism (such as a crawling band or strict volatility-smoothing interventions) allows the rupee to reflect economic fundamentals without allowing short-term market panic to trigger inflationary spirals.

Plug the drain: Closing trade mis-pricing and forex leakages

A genuinely liberalised forex policy cannot survive if the financial system contains structural trapdoors. Over the past decade, trade mis-invoicing-particularly import undervaluation-has drained billions of dollars from the formal financial ecosystem.

A. The advance payment loophole

High border tariffs (Customs duties stacked with CESS, PAL, and VAT) created strong incentives for importers to under-declare shipment values at ports. To settle the unpaid offshore balance to foreign suppliers, bad actors exploited Telegraphic Transfer (TT) advance payments-remitting dollars abroad under the guise of future cargo that was either mis-priced or never arrived.

B. Modernising the 2017 framework

The passage of the Foreign Exchange Act No. 12 of 2017 intended to streamline capital flows, but its decriminalisation of exchange offences and reliance on procedural banking checks weakened enforcement. Maintaining open forex flows requires smart enforcement rather than blunt bans:

nIntegrated data platforms: Automatically linking Central Bank TT remittance data with Sri Lanka Customs import manifests via Unique Identification Numbers (UINs) and TINs closes the valuation gap before funds leave the country.

nTargeted legal deterrence: Re-establishing strict legal and financial penalties for deliberate trade fraud ensures that liberalised rules apply only to legitimate commerce.

Tariff rationalisation: Lowering border taxes to protect consumers

An often-overlooked tool for currency and price stability is tariff reform. When the government levies exorbitant border taxes to generate quick revenue, it inadvertently drives up consumer prices and incentivises smuggling. A rational policy mix requires:

n Consolidating border taxes: Gradually eliminating multi-layered levies (such as CESS and PAL) in favour of a simplified, two-tier customs structure.

n Shifting to domestic consumption taxes: Expanding the broad-based Value- Added Tax (VAT) network on domestic sales ensures state revenue is collected at the point of final consumption rather than through distortionary port tariffs.

Lowering border tariffs reduces the profit margin of invoice tampering, naturally directing forex transactions back into official banking channels.

The path ahead

Navigating the transition to 2027 requires a clear-eyed synthesis of open-market economics and vigilant oversight.

A liberalised foreign exchange regime does not mean an unmonitored one. By automating trade verification, shifting revenue generation to broad domestic taxes, and employing rule-based exchange rate management, Sri Lanka can build the foreign reserves needed for 2027 while keeping domestic living costs stable and social peace intact.

(The author is the Principal Consultant and CEO of KiWi Strategy Consultants, based in Nugegoda, Sri Lanka. A Chartered Engineer with a diverse professional portfolio spanning senior corporate leadership, investment management, and strategic consulting, he holds a B.Sc. in Mechanical Engineering from the University of Peradeniya and an MBA from the University of Colombo. His extensive executive career includes tenures as the CEO of Dankotuwa Porcelain PLC and General Manager at ACME Printing and Packaging, alongside active, board-level involvement with the Marga Institute)

The Gampaha Lawyers’ Association has urged President Anura Kumara Dissanayake to reconsider the proposed two-year extension of the retirement age for Supreme Court and Court of Appeal judges, warning it could erode public confidence in judicial independence and delay the career progression of judicial officers.

In a letter to the President, the association called for broad consultation with the legal profession before any constitutional changes, the immediate filling of existing Superior Court vacancies through the constitutional process, and a reaffirmation of the Government’s commitment to judicial independence, the separation of powers and the rule of law. It argued that any change to judges’ tenure should be assessed not only for its legality but also for its impact on public confidence in the Judiciary.

McLarens Lubricants Ltd. has announced its partnership as the Official Lubricant Partner of the 92nd Mahagastota Hill Climb, scheduled to take place on 16-17 August 2026 at the Mahagastota racing track in Nuwara Eliya.

The Mahagastota Hill Climb is one of Sri Lanka’s oldest motorsport events, bringing together the country’s leading drivers and riders. Mobil’s association with the event reflects the brand’s continued presence in motorsport and its focus on lubricant technology developed for demanding operating conditions.

First held in 1934, the Mahagastota Hill Climb has become one of the country’s recognised motorsport events.

Held at Pedro Estate on Mahagastota Road, Nuwara Eliya, the 690-metre hill climb features two hairpin bends, testing competitors through a course that combines elevation, technical driving and speed.

The event has attracted generations of competitors, motorsport enthusiasts and spectators.

Mobil has a long association with automotive performance and motorsport. Its partnership with the Mahagastota Hill Climb reflects the brand’s focus on engine protection, reliability and performance.

Through its presence at the event, McLarens Lubricants aims to engage motorists, racing enthusiasts and automotive professionals while supporting Sri Lanka’s motorsport sector.

McLarens Lubricants Joint Managing Director Chaminda Gunerathne said: ‘The Mahagastota Hill Climb represents everything that Mobil stands for – performance, endurance, innovation and the pursuit of excellence. We are proud to be the Official Lubricant Partner of the 92nd edition of this historic event and to continue supporting Sri Lanka’s vibrant motorsport community.’

McLarens Lubricants has operations in Sri Lanka’s automotive and industrial lubricant sectors, supported by a distribution network across the country. The company said the partnership reflects its commitment to supporting the development of Sri Lanka’s automotive and motorsport sectors while strengthening Mobil’s presence among local consumers.

There’s a number Sri Lanka’s garment exporters bring up often. In December 2018, the industry’s exports crossed $5 billion for the first time, a level that had eluded it for years. Eighteen months earlier, the European Union had restored Sri Lanka’s GSP+ trading privileges, ending a suspension that had lasted six years. Correlation isn’t proof, but few in the industry need convincing. Take the concession away, and growth stalls; bring it back, and it resumes. Apparel remains Sri Lanka’s largest export earner, employing over 350,000 people and making up roughly 40-45% of exports and 6-7% of GDP. GSP+ isn’t a side note in that story. It’s close to the whole of it.

Which makes the coming months rather more important than they might first appear.

On 22 May 2026, the EU Council adopted a revised GSP regulation that tightens the link between trade preferences and compliance on human rights, labour, environment, and governance. From 1 January 2027, beneficiary countries will need to meet an expanded list of obligations, covering disability rights, child protection in conflict, labour inspection, the Paris Agreement, and organised crime, on top of what’s already required. Enforcement is sharper too: a faster ‘urgent withdrawal’ mechanism is being introduced, and the review cycle is stretching from two years to three, meaning fewer chances to course-correct if something slips.

Sri Lanka, like all other beneficiary countries, will need to apply for the new GSP+ scheme in 2027. The concern isn’t just that Sri Lanka may not qualify for the new scheme. It’s that the country isn’t getting full value from what it already has. The EU has framed the scheme as an opportunity rather than a burden, one that rewards genuine reform and real performance. The immediate priorities are clear: repeal and replace the PTA in a manner that meets international standards; address EU concerns on human rights, labour, environment, climate and governance; strengthen controls on illicit drugs and illegal fishing

Here’s the part too easily missed, current preferences hold until the end of 2028, but nothing renews automatically. Sri Lanka must formally re-apply under the new rules and submit an action plan showing exactly how it will meet the higher bar. The GSP+ review mission from Brussels has emphasised that the action plan cannot be a paper exercise; this time, Sri Lanka will have to show credible, demonstrable action, supported by evidence of implementation. Treat this as a formality, and the country risks losing more than it realises.

Beyond the compliance checklist, though, there’s a more solvable problem hiding in plain sight, and it’s one Sri Lanka can fix largely on its own. The country’s GSP+ utilisation rate, the share of eligible exports that actually claim the benefit, has hovered between just 49% and 59% in recent years. That means nearly half the available advantage goes unused, largely because EU rules of origin require garments to be made from the yarn stage domestically, a threshold the local fabric base can’t meet. Manufacturers end up relying on imported, non-qualifying fabric instead. Unlike geopolitical compliance benchmarks, this is a problem industry and government can solve together: through serious investment in domestic fabric capacity, through cumulation agreements with regional partners, and through active negotiation with the EU on rules-of-origin flexibility.

Timing adds urgency, too. In July 2026, the World Bank reclassified Sri Lanka as an upper-middle-income country with a GNI of $ 4,670 just $ 34 over the threshold for UMI classification.

It’s a genuine recovery milestone, but a recovery story, not yet a structural transformation. It also raises a question the industry can’t ignore: GSP+ is built for low- and lower-middle-income economies, and as Sri Lanka’s classification shifts, so does the case for using this window well, now, rather than assuming the door stays open indefinitely. Maintaining UMI status for three consecutive years would result in exclusion from the GSP+ scheme. That is why the timing of the application matters: applying early in 2027 could preserve a pathway to continued benefits and a transition period, while waiting until late 2028 risks pushing Sri Lanka into a decision point where MFN tariffs could apply from around mid-2029 if renewal is not granted.

Timing adds urgency. In July 2026, the World Bank reclassified Sri Lanka as an upper-middle-income country with a GNI of $4,670, just $34 over the threshold for UMI classification.

It’s a genuine recovery milestone, but a recovery story, not yet a structural transformation. It also raises a question the industry can’t ignore: GSP+ is built for low- and lower-middle-income economies, and as Sri Lanka’s classification shifts, so does the case for using this window well, now, rather than assuming the door stays open indefinitely. Maintaining UMI status for three consecutive years would result in exclusion from the GSP+ scheme

Brussels, for its part, has been unusually direct about where things stand. EU Ambassador Carmen Moreno told the Sri Lankan-German Business Forum this year that GSP+ ‘has delivered mixed results in Sri Lanka,’ pointing out that manufacturing still sits at only about a quarter of GDP, well behind more industrialised export peers like Vietnam. She urged Sri Lanka to use the time before reapplication to reform, industrialise, and attract investment, adding that the country hasn’t fully capitalised on the access it already has. Sri Lanka continues to face a credibility deficit with the EU, and the next application will be judged not by commitments alone but by whether the Government has acted on the EU’s core concerns.

Sri Lanka, like all other beneficiary countries, will need to apply for the new GSP+ scheme in 2027. The concern isn’t just that Sri Lanka may not qualify for the new scheme. It’s that the country isn’t getting full value from what it already has. The EU has framed the scheme as an opportunity rather than a burden, one that rewards genuine reform and real performance. The immediate priorities are clear: repeal and replace the PTA in a manner that meets international standards; address EU concerns on human rights, labour, environment, climate and governance; strengthen controls on illicit drugs and illegal fishing. What Sri Lanka does with the next two years, closing the utilisation gap and meeting the new requirements, or simply letting time run out, will decide the apparel industry’s path for the rest of the decade.

Homeowners can now experience the lifestyle envisioned at VIMAN Ja-Ela as John Keells Properties officially unveils the show apartment at the VIMAN Ja-Ela project site, bringing prospective buyers one step closer to modern suburban living.

Built on the development site itself, the model apartment lets visitors walk through a real VIMAN Ja-Ela home and experience its true layout, proportions, finishes, and quality first-hand. Prospective buyers are invited to explore the carefully designed spaces that bring together comfort, nature, and modern living.

Nestled in the heart of Ja-Ela, VIMAN has been thoughtfully crafted to offer more than just a place to live, it is envisioned as a community designed around comfort, connection, and everyday living. Spanning six acres with more than 60% of the land dedicated to green and open space, the development is designed to place nature and a sense of community at the heart of daily life. A thoughtfully curated mix of lifestyle amenities, from a resident clubhouse, swimming pool, and gymnasium to walking and cycling paths, children’s play areas, and inviting outdoor social spaces will give residents of all ages room to gather, relax, and connect. Unique communal settings such as the Ambalama are set to further enrich this spirit of community, creating natural gathering points where neighbours can meet and unwind.

Commenting on the development, John Keells Group Vice President and Sales and Marketing Head Nadeem Shums stated, ‘We’re delighted to open the doors to our show apartment and invite people to experience VIMAN Ja-Ela for themselves. Describing the lifestyle we’ve envisioned here is one thing – but stepping into the space and seeing the design and quality first-hand is something truly special.’

VIMAN Ja-Ela, developed by John Keells Properties, represents a new chapter in suburban living where modern design, everyday convenience, and a strong sense of community come together in a carefully planned environment. Located just 4 km from the Ja-Ela interchange on the Colombo-Katunayake Expressway, the development pairs a peaceful, landscaped setting with exceptional connectivity to key urban centres. With the opening of the show apartment, visitors can now explore the layout, quality, and design of the residences while gaining a first-hand understanding of the lifestyle that awaits within this growing residential neighbourhood.

The Cabinet has approved a proposal to increase the retirement age of judges by two years, paving the way for a constitutional amendment to be presented to Parliament.

The proposal, which has drawn opposition from the Bar Association of Sri Lanka (BASL), senior members of the legal fraternity and Opposition political parties, now requires parliamentary approval.

As the measure entails an amendment to the Constitution, it must secure a two-thirds majority in Parliament. The Government currently commands the numbers required to pass the amendment.

Heritage Expediciones Ltd., stepped into the 23rd year of operations on 01 July 2026, having renewed the company’s Travelife Certified sustainability status for the first time, marking a milestone year for the Colombo-based destination management company.

Since 2003, Heritage Expediciones has built a reputation on delivering carefully crafted Sri Lankan itineraries for international travellers. Sustainability has been a defining part of that growth: the company holds Travelife’s highest certification level, awarded following an independent third-party audit against more than 200 criteria covering office management, product range, supplier relationships, and customer communication.

This first renewal confirms the company’s position as one of Sri Lanka’s leading sustainable tour operators, with practices spanning environmental management, biodiversity protection, human rights and labour standards, in line with ISO 26000 and the UN’s Corporate Social Responsibility framework.

‘Reaching 23 years in this industry, and doing so as a Travelife Certified operator, reflects what we’ve always believed, that responsible tourism and long-term business success go hand in hand,’ said a company spokesperson. ‘This renewal is a milestone we’re proud of, and strengthens our commitment to operating as a sustainable and responsible tour operator as we look ahead.’

As the company moves into its next chapter, the focus remains on responsible growth, deepening work with local communities and suppliers, and maintaining the standards required by Travelife, the leading international sustainability certification for the travel industry.’

Access Real Estate has announced legendary Sri Lankan cricketer Chaminda Vaas as its new official Brand Ambassador. This landmark partnership anchors the celebration of the company’s 15th anniversary, marking a decade and a half of transforming Sri Lanka’s urban and residential landscapes.

Since its inception in 2011, Access Real Estate has grown into an industry giant, successfully delivering more than 155 developments on 350 acres of land, winning the loyalty of over 4500 landowners. The company develops fully serviced, ready-to-build residential and commercial plots in strategic locations. These projects feature essential infrastructure, including three-phase electricity, pipe-borne water, and wide internal roads. Each development project also prioritises close proximity to key transport infrastructure and major economic hubs, ensuring maximum convenience and long-term value for buyers.

‘Reaching our 15-year milestone is a testament to the trust our clients place in us. Welcoming Chaminda Vaas to the Access Real Estate family is the perfect way to celebrate. Chaminda represents the pinnacle of Sri Lankan dedication, consistency, and excellence, the exact pillars upon which we develop our projects,’ Access Real Estate Managing Director/CEO Theo Fernando said.

Chaminda Vaas stands as one of the greatest fast bowlers in cricket history, having taken over 750 international wickets for Sri Lanka. Renowned for his precision, enduring work ethic, and impeccable integrity on and off the field, his reputation for reliability and consistent elite performance makes him the ideal representative. Reflecting on the partnership, Vaas noted, ‘Access Real Estate has proven itself to be a company worthy of respect and admiration, not just because of their impeccable professional standards, but due to their unwavering commitment to the communities they serve.’

Access Real Estate has looked beyond bricks and mortar to help communities elevate their quality of life. By providing strategic relocation opportunities, the company enables families to benefit from urban property appreciation while gaining immediate access to modern daily conveniences and superior infrastructure.