Business
Allegation against state bank hits investor confidence
By Hiran H.Senewiratne
CSE investor sentiment was affected yesterday close on the heels of Samagi Jana Balawegaya legislator Harsha de Silva telling parliament that a state bank had defaulted on a contract payment, stock market analysts said.
De Silva said that Sri Lankan banks had faced counterparty limit cuts since a downgrade of sovereign credit, which has tightened in recent times, making it harder to roll-over contracts.
“A few months ago, I warned in parliament about state banks borrowing dollars at high rates through swaps where premiums were negative, de Silva told parliament. The main opposition questioned in parliament whether a state bank had delayed payment on a contract, as the country struggles with a foreign exchange crisis triggered by money printed to maintain low interest rates.
Amid those developments the stock market was somewhat volatile and buying interests were noted in blue-chip counters but lower turnover level/ or below average turnover did not support the market to sustain its momentum. However, the market has some hope as the government has taken some steps to salvage fiscal and monetary consolidation via an IMF bailout, stock market analysts said.
Consequently, both indices showed mixed reactions. The All- Share Price Index went down by 6.1 points and S and P SL20 rose by 22.2 points. Turnover stood at Rs 1.7 billion with a single crossing. The crossing was reported in LB Finance, which crossed 323,000 shares to the tune of Rs 20.7 million, its shares traded at Rs 64.
In the retail market, top seven companies that mainly contributed to the turnover were, Expolanka Holdings Rs 294 million (1.1 million shares traded), LOLC Holdings Rs 160 million (200,000 shares traded), ACL Cables Rs 133 million (1.6 million shares traded), Browns Investments Rs 119 million (11.6 million shares traded), JKH Rs 116 million (740,000 shares traded), Royal Ceramic Rs 94.8 million (1.8 million shares traded) and Chevron Lubricants Rs 74.7 million (764,000 shares traded). During the day 50.9 million share volumes changed hands in 14000 transactions.
Sunshine Holdings has entered into a sales and purchase agreement with another high-net worth investor, Govindasamy Sathasivam, for acquiring a 100 per cent stake in Sunshine Teas Pvt Limited for a Rs 1.4 billion consideration. Meanwhile, Sunshine Holdings plans to purchase a 28 per cent stake in Sunshine HealthCare Lanka Limited for a Rs 2.6 billion financial consideration from Akbar Brothers. However, a 72 per cent stake was purchased from the same company some time ago.
Though the index began trading on an upbeat note, retail favourite counters started losing the positive momentum and eventually led the market to close lower for the eighth consecutive day on the previous day at 10,458, losing 33 points.
It is said that high net worth and institutional investor participation was noted in JKH, Lanka IOC and Vallibel Finance. Mixed interest was observed in Hayleys and Expolanka Holdings, while retail interest was noted in Browns Investments and SMB Leasing voting.
Separately, the National Development Bank announced a first and final dividend of one rupee per share and a scrip dividend of Rs.4.50 per share.
Yesterday the US dollar rate was quoted at Rs 280.90, which was the free float of the rupee against the dollar. Its rate differs among commercial banks.
Business
ADB-funded Thalaiyadi plant serves as blueprint for vulnerable dry zones in Sri Lanka
Sri Lanka should adopt a diversified water-security strategy, says chief engineer
By Sanath Nanayakkare
For generations, the Jaffna Peninsula has relied almost entirely on an underground freshwater lens. With no major perennial rivers to lean on, the region has long walked a tightrope between water scarcity, seasonal droughts, and a creeping groundwater salinity that has challenged communities across the North. Today, however, a monumental shift is underway along the windswept Vadamaradchi coast.
To understand how Sri Lanka is rewriting its water security playbook, one need only look to the Thalaiyadi Seawater Reverse Osmosis (SWRO) Plant.
V. Vijayakanth, Chief Engineer of the Jaffna Kilinochchi Water Supply and Sanitation Project (JKWSSP), recently explained the engineering marvels, environmental safeguards, and long-term vision driving this landmark infrastructure project.
“Building a multi-million-gallon desalination plant on an open, deep-sea coastline facing the Indian Ocean was no small feat,” he said.
Vijayakanth noted that the project required extensive marine, geotechnical, and ecological investigations before a single pipe was laid.
“The scale of the marine installation was striking: an intake and outfall system featuring roughly 1,300 metres of large-diameter pipeline, buried two metres beneath the seabed in water depths reaching up to 12 metres. Because ocean work is strictly dictated by nature, the team had to mobilise an excavator-mounted barge from India and execute a complex offshore operation within a very tight window before the onset of the monsoon.”
“One of the greatest historical hurdles of reverse osmosis technology has been its heavy appetite for electricity. To keep operational costs in check, the Thalaiyady plant integrates state-of-the-art isobaric pressure-exchanger energy recovery systems. These devices capture hydraulic energy from the high-pressure brine reject stream and transfer it directly back to the incoming seawater feed – recovering roughly 95% of available energy and slashing power requirements.”
“Environmental stewardship was equally central to the design. To prevent high-salinity discharge from harming the marine ecosystem, the plant utilizes an offshore outfall equipped with specialized diffusers positioned more than 500 metres from the shore. This ensures rapid mixing within a tightly monitored zone, safeguarding local marine life,” he said.
The impact of the plant is already tangible on the ground. Producing water that meets rigorous national quality standards (SLS 614:2013), the facility feeds into a vast transmission network linked to elevated service reservoirs. These tanks regulate hydraulic pressure across sprawling distribution routes, bringing relief to areas historically plagued by hard, brackish water.
Currently, about 1,600 households in the Karaveddi Zone are actively connected to the desalinated supply, with water flowing across a regional network stretching from Kodikamam and Jaffna City down to distant island communities like Delft, Kayts and Punguduthivu.
The peninsula’s total daily drinking water demand hovers around 50,000 cubic metres for a population of roughly 600,000. Operating at full capacity, the Thalaiyadi plant yields 24,000 cubic metres per day – meeting nearly half of the region’s current needs.
Yet, planners are already looking decades ahead. Driven by economic development, tourism, and proposed industrial zones like Kankesanthurai, projected potable water requirements for domestic, commercial, and industrial needs are expected to climb from 95,000 cubic metres per day in 2025 to 135,000 by 2045, and 175,000 by 2065. Meeting this future trajectory will require a diversified national strategy combining desalination with surface-water preservation and rainwater harvesting.
When asked whether Sri Lanka should lean exclusively on seawater conversion amid intensifying climate volatility, Vijayakanth emphasised the need for a balanced approach: “Sri Lanka should adopt a diversified water-security strategy, prioritising sustainable surface-water development, groundwater protection, rainwater harvesting, water conservation, treated wastewater reuse and catchment protection. Desalination can complement these sources as a valuable climate-resilient and drought-proof option where appropriate.”
Backed by financial and technical collaboration from the Asian Development Bank (ADB), the project has given the National Water Supply and Drainage Board (NWSDB) invaluable expertise in advanced desalination management. Crucially, a two-year hands-on training program is ensuring that local technical staff master everything from membrane upkeep to preventive maintenance.
As climate variability accelerates, Thalaiyadi serves as a vital proof-of-concept. While energy-intensive desalination cannot replace conventional freshwater sources everywhere, Vijayakanth emphasises that it stands as an indispensable, drought-proof shield for Sri Lanka’s vulnerable dry zones – turning the ocean itself into a secure foundation for the nation’s future.
Business
Tropic Of Linen takes new form at The Shoppes at City of Dreams
Sri Lankan fashion label Tropic Of Linen recently opened the doors to its second boutique, located at The Shoppes at City of Dreams.
For over a decade, linen has formed the core of the brand’s inspiration and business ethos. Its textures, movement, and natural irregularities carry through the striking interior of Tropic Of Linen’s newly opened second store. Large sculptural forms in wind-worn sandstone sit against softer curves, while a grand olive tree anchors the heart of the store, reaching up toward a skylight and giving life to the entire space.
Drawing on her background in fine art and design, co-founder Minha Akram envisioned a layered, sensory interior intended to draw people into the world of Tropic Of Linen and invite them to linger.
Business
ANC Education celebrates ‘Class of 2026’ at graduation ceremony in Colombo
ANC Education held its 2026 graduation ceremony at BMICH, Colombo, celebrating graduates across multiple programmes. The cohort included 53 BBA graduates from Northwood University, 22 Psychological Sciences graduates from Northern Arizona University, 320 Pearson BTEC HND graduates, and 29 BTEC Level 7 graduates, alongside foundation, diploma, and transfer pathway students. Senior representatives from partner institutions attended.
Best Performer Awards recognised outstanding academic achievement. The event honoured years of hard work and support from families and educators. Since 2002, ANC has provided local and international pathways. Graduates now pursue careers, further studies, or international opportunities.
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