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CSE plunges by 2.5 per cent in the wake of budget proposals

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By Hiran H.Senewiratne

The CSE fell 2.5 percent at the beginning of trading yesterday subsequent to Finance Minister Basil Rajapaksa’s 2022 budget presentation due to the 25 percent retrospective tax surcharge on firms that earned over Rs. 2 billion in 2020/21 and the 3 percent increase in Value Added Tax (VAT) for banks, insurance, and financing firms.

VAT was increased to 18 percent from the current 15 percent on banks and financial service providers under supply of financial services by specified institutions with effect from Jan.1, 2022, targeting Rs 14 billion from the proposal.

CSE fall was led by banks and financial sector institutions. This was expected and banks were worried about the tax because it would adversely impact the banking and financial sector institutions, market analysts said.

However, during the latter part of the day the CSE showed some recovery. It was the same in 2015 when the last government came up with a similar retrospective tax that was introduced, stock market analysts said.

The All- Share Price Index plunged to 10,372 immediately after it opened and dropped to over 2 percent but later recovered slightly due to the LOLC group witnessing some buying pressure from two main companies, LOLC Holdings and LOLC Finance, that drove the market, stock market analysts said.

Accordingly, both indices showed mixed reactions. The All -Share Price Index went up by 86.28 points and S and P SL20 went down by 17.57 points. Turnover stood at Rs 6.9 billion with two crossings. Those crossings were reported in Chevron Lubricants, where 340,000 shares crossed for Rs 35.7 million and its shares traded at Rs 105 and LOLC Holdings 29000 shares crossed for Rs 20.1 million, its shares traded at Rs 696.

In the retail market top five companies that mainly contributed to the turnover were, LOLC Finance Rs 2.1 billion (74.6 million shares traded), Expolanka Holdings Rs 428 million (2.1 million shares traded), Browns Investments Rs 423 million (36.6 million shares traded), RIL Properties Rs 364 million (23.8 million shares traded) and LOLC Holdings Rs 339 million (480,000 shares traded). During the day two LOLC Group companies share prices appreciated. Those were LOLC Holdings, whose share price appreciated by Rs 29.25 or four percent. Its share price shot up to Rs 738 from Rs 692.75, contributing 31 points to the All- Share Price Index. LOLC Finance share price appreciated by Rs 12.90 or 15 percent. Its share price shot up to Rs 95.50 from Rs 82.60. Other than the LOLC Group of companies, significant price appreciation was witnessed in Watawala Plantations, whose share price appreciated by 15 percent or Rs 12.90. Its share price appreciated to Rs 95.250 from Rs 82.60.During the day 316 million share volumes changed hands in 52000 share transactions.

MSCI Inc., the leading provider of research-based indexes and analytics, has included Expolanka Holdings PLC in its Frontier Markets Equity Index.

Expolanka is one of the three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization. The other two are Phat Dat Real Estate (Vietnam) and Islandsbanki (Iceland).

MSCI also announced four deletions from the Index, including Commercial Bank of Ceylon PLC. The MSCI Sri Lanka Index has two constituents. JKH is the other, apart from Expolanka. The MSCI Sri Lanka had offered 7.55 per cent return as opposed to 8.57 percent by MSCI Frontier Markets index since 31 May 2002. MSCI Sri Lanka’s PE ratio is 10.78 times as against 16.59 times of MSCI Frontier Index.

Yesterday, the US dollar was quoted at Rs 202.05 as per the Central Bank controlled price. This was introduced to control price increases of essential items in the local market.



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EU’s new anti-greenwashing rules pose major challenge for Sri Lankan exporters

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This new directive applies to businesses across multiple sectors, of any size, that export products or services to the EU market.

Countdown to September 2026 begins

Sri Lankan exporters selling into Europe may soon face one of the most significant regulatory shifts in recent years as the European Union prepares to enforce sweeping new rules aimed at eliminating ‘misleading’ environmental and sustainability claims.

The regulation, known as the Empowering Consumers for the Green Transition Directive (EmpCo) – Directive (EU) 2024/825, will become fully enforceable across all EU member states from September 27, 2026. While the directive is primarily designed to protect European consumers from so-called ‘greenwashing,’ and it carries important implications for exporters worldwide, including those in Sri Lanka.

Compliance experts warn that many local businesses remain largely unaware of the new requirements despite their potential impact on market access, brand reputation, and regulatory compliance.

The directive introduces a simple but demanding principle: companies must be able to substantiate environmental and sustainability claims with credible evidence. Generic descriptions such as ‘eco-friendly,’ ‘green,’ ‘sustainable,’ ‘responsible,’ ‘carbon neutral,’ or ‘climate friendly’ may no longer be used freely unless they can be verified through reliable data and supporting documentation.

For Sri Lankan exporters, this represents a significant shift. Sustainability claims increasingly appear on product packaging, websites, social media campaigns, annual reports, tourism marketing materials, and corporate communications. Under the new framework, such claims could face scrutiny from regulators, consumers, retailers, and civil society groups.

The directive also places particular emphasis on future environmental commitments. Claims such as ‘Net Zero by 2040’ or ‘Carbon Neutral by 2030’ may require businesses to demonstrate clear implementation plans, measurable milestones, and systems for monitoring progress rather than relying on aspirational statements alone.

An environmental compliance expert told The Island Financial Review that this transforms sustainability from a communications exercise into a governance issue. “Responsibility will no longer rest solely with sustainability departments. Company directors, senior executives, marketing teams, procurement professionals, and compliance officers will all have roles to play in ensuring that public claims can withstand regulatory scrutiny. The potential costs of non-compliance are considerable. Under the directive, penalties may include fines of up to four percent of annual turnover generated within the relevant EU member state, restrictions on marketing activities, increased regulatory investigations, and challenges from consumer organisations and commercial partners.”

“The reputational consequences may prove even more damaging. In highly competitive export markets, trust has become a critical business asset. Companies found to be making unsubstantiated environmental claims could face long-term damage to relationships with buyers, retailers, and consumers.”

“The timing is particularly important for Sri Lankan businesses because compliance preparations, reporting frameworks and adjustments are needed before the enforcement date arrives.”

“Businesses supplying European markets are therefore being encouraged to begin assessing their exposure now rather than waiting until the last minute. Early preparation could help exporters safeguard market access, maintain buyer confidence, and strengthen their competitive position in an increasingly sustainability-conscious global economy.”

“For Sri Lanka’s export sector, the message from Europe is becoming increasingly clear: sustainability claims will no longer be judged by how compelling they sound, but by how convincingly they can be proven,” he said.

As the countdown to September 2026 begins, exporters may need to ask themselves a critical question: Are their sustainability claims ready for a new era of accountability?

By Sanath Nanayakkare

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University of West London opens Sri Lanka’s first full UK university branch campus

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The official signing ceremony between the University of West London, UK and ANC Education.

The University of West London (UWL) has formally opened the University of West London Sri Lanka Branch Campus, the country’s first full UK university branch campus, marking a landmark development in Sri Lanka’s higher education sector.

The University of West London Sri Lanka Branch Campus is designed to bring a UK university learning experience closer to students in Sri Lanka. The campus is operated by ANC Campus, a pioneer in the higher education sector in Sri Lanka with over two decades of experience in delivering internationally recognised education.

The University of West London Sri Lanka Branch Campus gives students the opportunity to study towards world-class UK degrees while remaining close to home. Academic delivery, assessment and quality assurance will be aligned with University of West London standards, with the University maintaining academic oversight of its courses and awards. Students will have access to UWL-approved programmes, academic support, learning resources and a campus environment designed to promote academic success, confidence and employability.

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Xiaomi Store powered by Abans opens at One Galle Face Mall

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Xiaomi Sri Lanka, marked a significant day in the brand’s local journey with the launch of the all-new Xiaomi 17T and the grand opening of the new Xiaomi Store powered by Abans at One Galle Face Mall, Lower Ground.

This occasion reflects the brand’s growing presence in the country and its commitment to bringing smarter technology, connected devices and immersive customer experiences closer to Sri Lankan consumers.

Held under the theme “Step into a smarter world with Xiaomi,” the launch event welcomed media, partners, technology enthusiasts and customers to experience Xiaomi’s latest innovation and wider smart ecosystem. The new store at One Galle Face Mall powered by Abans has been designed to give customers a hands-on experience across Xiaomi smartphones, smart home products, lifestyle technology and connected devices, supported by Abans’ strong retail presence and customer service network.

Commenting on the milestone, Kain Wang, Country Head, Xiaomi Sri Lanka, said, “17th June is a significant day for Xiaomi in Sri Lanka as we celebrate two important milestones together: the launch of the Xiaomi 17T and the opening of our new Xiaomi Store powered by Abans at One Galle Face Mall. This reflects the strength of Xiaomi’s journey in Sri Lanka and our continued commitment to offering innovation, performance and smarter lifestyle experiences to local consumers. With Xiaomi 17T, we are bringing advanced Leica imaging, powerful performance and long-lasting battery life to users who want to do more with their smartphones. At the same time, our new store creates a dedicated space for customers to experience the Xiaomi ecosystem in a more personal and engaging way.”

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