Business

CBSL’s Financial Intelligence Unit battling to keep Sri Lanka away from ‘black and grey’ lists

Published

2 years ago

2023/10/16

By Sanath Nanayakkare

The Next Mutual Evaluation of the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog has begun to creep up on Sri Lanka, and the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) is busy taking on the gigantic challenge of effectively implementing a compliance framework to convince the FATF that Sri Lanka qualifies to stay away from their black and grey lists.

The framework also needs to include ways to prevent Financing of Proliferation of Weapons of Mass Destruction.

Dr. Subhani Keerthiratne, Additional Director, Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka told the media recently that Money Laundering and Terrorism Financing (ML and TF) pose serious risks to the domestic and global financial system, peace and development, and therefore, it is important for Sri Lanka to have a robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework in place. FATF calls upon all countries to effectively implement these measures in their national systems. These requirements are in line with the United Nations Convention and The International Convention for the Suppression of the Financing of Terrorism,” she pointed out.

“The 3rd Mutual Evaluation of Sri Lanka in this regard is scheduled to commence in March 2025 and all stakeholders need to unite with a national spirit to demonstrate that Sri Lanka has strong measures in place to combat money laundering and terrorist financing. The FIU alone can’t achieve this. It has to be a concerted effort of all stakeholders, the media and the general public. Responsible parties need to apply enhanced due diligence to apply counter-measures to protect the international financial system from the risks that could emanate from our country,”

The Additional Director of the FIU made these remarks at a workshop conducted for journalists with the objective of creating broader awareness of money laundering and terrorist financing risks while asking the media to take the message across to the general public of the country who could effectively support the FIU and the law enforcement authorities to detect and crack down on the culprits engaging in such activities.

FATF sets international standards that aim to prevent such illegal activities and the harm they cause to society and the FIU has to demonstrate its technical compliance of International standards on combatting Money Laundering and Financing of Terrorism and Proliferation.

This means the FIU will have to set standards and promote effective implementation of legal, policy and operational measures to combat ML/TF/PF, both at national and international level.

The FIU, as the focal point of AML/CFT for the country, has the responsibility to ensure that Sri Lanka is compliant with all 40 FATF Recommendations and its AML/CFT framework produces expected results. FIU has played a key role in achieving the current acceptable technical compliance level of Sri Lanka in order to stay away from the Grey List.

The FATF does not require its members to take action on countries listed in the ‘Grey List’. Members are required to take action only against Blacklisted Countries. However, most countries treat Grey Listed countries as of ‘high risk’ and blacklist them. Subsequent to Sri Lanka’s second Grey Listing, the EU included Sri Lanka in its Blacklist. Repercussions of EU Blacklisting led to several banks in the EU region stopping their dealings with Sri Lankan customers/institutions. ‘Handelsbanken’ in Sweden stopped all payments to Sri Lanka both for individual and corporate customers. Sri Lankan exporters (IT exporters, tourism sector) faced difficulties in getting back their export proceeds. Foreign investors raised concerns about real estate sector investments .Reluctance for new correspondent banking relationships could also result in from such a situation,” she said.

She pointed out that J P Morgan visited FIU-Sri Lanka as the country was treated as of high-risk and subjected to enhanced due diligence for correspondent banking. Western Union and Danske Bank expressed the same sentiments.

“If we go back to grey list, Sri Lankan corporations, individuals, financial institutions could be subject to extra scrutiny. There would be higher cost of borrowing– Increased interest rates due to additional risk premia. Also, there is the possibility of being downgraded by global credit agencies and the decline of doing business indicators. Sri Lankan business community would be discouraged to engage in import/export trade in such a context,” she noted.

She went on to say that the IMF also concerns in this area with regard to the country’s lack of successful corruption-related money laundering investigations, prosecutions, and convictions.

“The IMF is concerned that Sri Lanka has yet to address the deficiencies relating to transparency of beneficial ownership of legal persons in its legal framework,” she said.

“The Mutual Evaluation in March 2025 will assess how effectively Sri Lanka has implemented measures to combat ML/TF. In this process, Sri Lanka is required to submit a technical compliance report with all the relevant material such as laws, regulations, manuals, procedures, circulars, SOPs as evidence of compliance,”

Once a robust FIU framework is in place, it will help the authorities to take effective action to detect and disrupt financial flows that fuel crime, terrorism and corruption and punish those responsible for illegal activity and become a jurisdiction free from constant monitoring by the FATF.

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Business

HNB Assurance delivers industry leading 42% revenue (GWP) growth and 28% rise in profits (PAT)

Published

23 hours ago

2026/03/1

Thilina Walpola

HNB Assurance PLC reported an outstanding financial performance for the year ended 31st December 2025, delivering a 42% year-on-year growth in Life Insurance Gross Written Premium (GWP), this along with the growth rate in Renewals are the highest in the industry.

Life GWP reached Rs. 19.49 Bn compared to Rs. 13.71 Bn in 2024, reflecting strong New Business generation and Renewal Collection. Net Written Premium grew even faster at 43% to Rs. 18.44 Bn, highlighting the quality and sustainability of the Company’s topline expansion.

Commenting on the results, Chairman Stuart Chapman stated, “The year under review was marked by gradual macroeconomic stabilisation, improved investor sentiment and a more predictable policy environment. Although the economy continues to recover from prior volatility, we are beginning to see renewed financial confidence among individuals and businesses. Against this backdrop, HNB Assurance has delivered strong growth in both revenue and profits, while maintaining robust capital adequacy and prudent risk management. Our improvement in top line, profitability and balance sheet strength demonstrates the resilience of our business model and our ability to navigate changing economic conditions which are reflected in an ROE which increased to 18.5% from 16.9% a year earlier.”

Profit Before Tax increased by 28% to Rs. 3.03 Bn from Rs. 2.36 Bn in the previous year, while Profit After Tax (including Life Surplus Transfer) rose by 28% to Rs. 2.12 Bn compared to Rs. 1.66 Bn in 2024. Earnings Per Share improved by 28% to Rs. 14.15 from Rs. 11.04, reinforcing the Company’s ability to consistently translate business growth into enhanced shareholder value. In line with this strong performance, the Board of Directors has proposed a first and final dividend of Rs. 5.00 per share for 2025, representing a 28% increase over the Rs. 3.90 per share declared in the previous year.

Executive Director and Chief Executive Officer Lasitha Wimalaratne highlighted the consistency of the Company’s upward trajectory. “Our 2025 performance reflects a sustained pattern of high growth and disciplined execution over the past four years. During this period, we have consistently strengthened our distribution reach, enhanced advisor productivity, invested in digital enablement and sharpened our customer centric value proposition. Each year we have built on the previous year’s gains, and the 42% growth in Life GWP in 2025 is the strongest affirmation yet of that strategy. Importantly, we have achieved this while maintaining underwriting discipline, expanding our Life Fund and delivering a 28% increase in PAT.”

The strength of the Company’s balance sheet continued to improve during the year. Total Assets grew by 28% to Rs. 68.44 Bn from Rs. 53.40 Bn, while financial investments increased by 29% to Rs. 62.49 Bn from Rs. 48.49 Bn in 2024, reflecting disciplined asset accumulation and prudent investment management. Total Equity rose to Rs. 12.19 Bn from Rs. 10.81 Bn, supported by Retained Earnings which grew by 18% to Rs. 10.23 Bn.

The Life Insurance Fund recorded a significant expansion of 27%, increasing to Rs. 48.87 Bn from Rs. 38.34 Bn in the previous year. During the year, the Company paid Rs. 4.40 Bn in Net Insurance Benefits and Claims, honouring its commitments to policyholders and their families while further strengthening long term reserves. Investment Income remained a key contributor to performance, with interest and dividend income rising by 10% to Rs. 7.49 Bn.

The Market Capitalisation as at the end of the year stood at Rs. 17.21 Bn up 43% from a year ago when it was Rs. 12.02 Bn, while trading for year ended at Rs. 114.75 per share increasing by 43% from Rs. 81.10 a year ago.

Business

Phoenix Ogilvy Dominates Sri Lanka’s Creative Rankings

Published

23 hours ago

2026/03/1

Thilina Walpola

Irvin Weerackody – Chairman, Ogilvy Group Sri Lanka

Standout year with international award show wins at LIA, One Asia, Clio, AdFest, Spikes Asia & The Work

Phoenix Ogilvy has been named 2025 Sri Lanka Agency of the Year after topping The Campaign Brief Asia’s Creative Rankings as the most internationally awarded agency in the country, an agency news release said..

The agency’s ranking also marks Sri Lanka’s return to the list in 2025, following the country’s absence from it the previous year.

The Campaign Brief Asia Creative Rankings annually evaluate the top 100 most awarded creative agencies in Asia, based on their achievements across leading international award shows.

The rankings are widely regarded as one of Asia’s most credible measures of creative excellence. Agencies accumulate points purely from award wins across major international creative shows, making it one of the longest-running and most respected benchmarks of creative performance in the region.

Phoenix Ogilvy secured the top spot in the national table, amassing an impressive 295 Creative Ranking points after standout wins across six major international creative award shows, including London International Awards (LIA), One Asia Awards, Clio Awards, AdFest, Spikes Asia, and Campaign Brief’s The Work.

Being ranked at the top not only signals national creative leadership for Phoenix Ogilvy but also exhibits the agency’s talent strength. In a testament to this creative calibre, the agency’s talent dominated the Campaign Brief Asia’s Individual Creative Rankings in Sri Lanka.

Leading this list is Nadeera Warawita with 250 Creative Ranking points, followed by Sakuna Ranasinghe at No. 2 with 220 points, and Samitha Kaushalya at No. 3 with 150 points. Meanwhile ranked jointly at No. 4, are Dilshi Aberaja, Dilshard Ahamed, Harsha Kumara, Kasun Wadumestri, Keshan Silva, and Suresh Kumar. At no. 10 is Dilshi Thathsarani.

Speaking on these achievements, Irvin Weerackody, Chairman of the Ogilvy Group Sri Lanka, said, “Creativity has always been our lifeblood, and it is encouraging to see that commitment recognised on the world stage. The real test of an agency is not the trophies, but the courage to create with integrity, especially today. These achievements not only reflect the capability of our talent, but importantly their discipline, their cultural instinct and their refusal to take the easy way out. I am proud of our teams, who continue to push themselves year after year to raise the bar and uphold the standards we believe in.”

For five decades, Phoenix Ogilvy has been a defining pillar of the country’s marketing landscape and an influential creative powerhouse. From its earliest days, the agency has challenged convention and advocated brave thinking, producing work that commands attention, both locally and internationally.

Renowned as a formidable training ground for Sri Lankan advertising talent, the agency has also played a pivotal role in shaping generations of trailblazing creatives, strategic thinkers, and industry leaders who continue to leave their mark across the region and beyond.

Strengthened by the global Ogilvy network, the agency enjoys a rare blend of global creative rigour and deep local intelligence. Over the years, it has diversified across multiple disciplines and today stands as a talent hub for 290 industry specialists spanning creative, strategy, digital, media, public relations and integrated communications in Sri Lanka.

At its core, the agency remains true to the principles it was built on: that great ideas come from disciplined minds, uncompromising craft, and the refusal to settle for the ordinary.

Business

Oak Ray Chef Marks a Culinary Milestone with 118 Unique Creations

Published

23 hours ago

2026/03/1

Thilina Walpola

In the intricate world of pastry and bakery arts, R.S. Weerakoon has emerged as a visionary creator, known for his extraordinary ability to transform any concept into a stunning cake masterpiece. Currently serving as the Head Chef (Pastry & Bakery) at the Oak Ray Group in Kandy, Weerakoon’s journey is a blend of local talent and international expertise.

An alumnus of Udispattuwa Maha Vidyalaya, Weerakoon holds an NVQ Level 04 qualification from NAITA and is a distinguished member of the Chefs’ Guild of Sri Lanka. With over 14 years of experience in the industry, including valuable tenures in Kuwait and Oman, he has successfully integrated Middle Eastern culinary trends with local flavors.

One of his most significant contributions to the industry is the introduction of 118 unique products to the Oak Ray Group. Remarkably, all these creations are made without the use of any artificial food colorings, prioritizing the health and well-being of consumers.

Speaking about this talented professional, the Chairman of the Oak Ray Group, Mr. Sujeewa Palliyaguruge, stated that his vision is to provide a creative platform for such skilled young individuals.

“Our goal is to allow talented creators like Weerakoon the freedom to innovate and bring their unique visions to life, which ultimately benefits the entire culinary industry in Sri Lanka,” he said.

Weerakoon’s dedication to natural ingredients and his mastery of cake architecture continue to set new benchmarks for the next generation of chefs in the hill capital.