The United Nations Development Programme (UNDP) and the Central Bank of Sri Lanka (CBSL) have strengthened their partnership to advance financial literacy across the country, with a renewed focus on empowering vulnerable communities, strengthening economic resilience and promoting sustainable development.

The two institutions formally launched the second phase of their collaboration recently, reaffirming their commitment to implementing Sri Lanka’s National Financial Literacy Roadmap (2024–2028), a cornerstone of the National Financial Inclusion Strategy (NFIS).

The partnership was marked by a meeting between Central Bank Governor Dr. P. Nandalal Weerasinghe and UNDP Resident Representative in Sri Lanka Ms. Azusa Kubota, together with officials from both organisations.

Building on technical support provided by UNDP during 2024 and 2025, the latest phase seeks to equip individuals, households and businesses with the knowledge required to make sound financial decisions, improve livelihoods and enhance resilience in an increasingly uncertain economic and climatic environment.

The initiative comes at a crucial juncture as Sri Lanka continues its economic recovery while grappling with climate-related challenges that disproportionately affect rural communities and small enterprises.

A key component of the programme will be strengthening the capacity of government outreach officers across all districts to deliver financial literacy training to rural populations and micro, small and medium enterprises (MSMEs).

The training will be based on the Financial Literacy Curriculum developed by the Central Bank, with UNDP supporting the enhancement of modules through the integration of climate-resilient financial management concepts.

The programme aligns closely with Sri Lanka’s Financial Literacy Roadmap and is expected to contribute significantly to improving financial knowledge and access across the country. It is supported by several development and private-sector partners, including the government of Japan, Chrysalis, VISA and Hirdaramani-Lacoste.

Speaking on the importance of the initiative, Central Bank Governor Dr. Weerasinghe said the partnership would help broaden the reach of financial literacy efforts while addressing emerging challenges such as climate-related financial risks.

“We particularly welcome the focus on strengthening financial resilience, climate-related financial preparedness, public awareness campaigns and capacity-building through Training-of-Trainers programmes, he said.

He noted that the initiatives would ensure that different segments of society gain access to practical financial knowledge and develop the skills necessary to foster responsible financial behaviour and improve their overall financial well-being.

UNDP Resident Representative Ms. Kubota underscored the critical role financial literacy plays in creating inclusive and resilient economies.

“Financial literacy is a critical foundation for inclusive and resilient economies. Through our partnership with the Central Bank of Sri Lanka, we have been working to empower individuals, particularly those most vulnerable, with the knowledge and tools needed to make informed financial decisions and build secure livelihoods, she said.

By Ifham Nizam

The government’s decision to ban the export of mineral resources in raw form and place all future mineral exploration under state control has triggered fresh debate over how Sri Lanka should develop its untapped mineral wealth and attract foreign investment.

Announcing the new National Mineral Policy, Industry and Entrepreneurship Development Minister Sunil Handunnetti said the country had long failed to capture the full value of its mineral resources by exporting them with minimal processing.

“We will no longer allow mineral resources to leave the country in raw form,” the minister said, arguing that Sri Lanka must move towards value-added industries that generate greater economic returns.

A key feature of the new policy is the transfer of all mineral exploration activities to the state-run Geological Survey and Mines Bureau (GSMB). Under the new system, the GSMB will carry out exploration, publish geological data and subsequently invite investors to participate in commercially viable projects.

Handunnetti defended the move by citing what he described as the failure of the previous licensing regime. According to government figures, 471 exploration licences had been issued since 1993, but only 28 advanced to mining operations, with just 12 remaining active today. The minister alleged that some companies had used exploration licences to boost corporate valuations rather than develop actual mining projects.

He also stressed that mineral deposits located beneath privately owned land belong to the state and should be developed in the national interest.

However, the reforms are likely to attract close scrutiny from foreign investors seeking opportunities in Sri Lanka’s mineral sector.

An independent industry analyst said the policy’s emphasis on value addition is consistent with global trends, as countries increasingly seek to process critical minerals domestically rather than export raw materials.

“The more difficult question is whether a state-controlled exploration model can generate the confidence required by international investors,” the analyst said. “Investors will want access to reliable geological data, transparent licensing procedures and predictable regulations before committing significant capital.”

The analyst noted that the government’s plan to publish exploration data before inviting investment proposals could help improve transparency, but its success would depend on how scientifically the process is implemented.

Sri Lanka possesses commercially valuable deposits of graphite, mineral sands, ilmenite, rutile, garnet, silica and phosphate. As global demand for industrial and strategic minerals continues to grow, the new policy represents a significant test of whether stronger state involvement can translate geological potential into investment, industrial development and export earnings.

“The success of the strategy may ultimately depend on whether the government can balance tighter control over mineral resources with the policy certainty and commercial incentives that international investors typically seek,” the analyst said.

By Sanath Nanayakkare

Commercial Bank of Ceylon, in its commitment to provide secure and world-class technologies to its customers, has further strengthened the security and convenience of online payments for its UnionPay cardholders by becoming the pioneering financial institution in Sri Lanka and the wider South Asian region to introduce advanced 3-D Secure (3DS 2.x) authentication for UnionPay e-commerce transactions.

This milestone makes the UnionPay card a fully empowered e-commerce instrument, enabling cardholders to shop securely at millions of merchants worldwide. The latest addition to the Bank’s robust 3DS-enabled card portfolio ensures that UnionPay users benefit from the same high-level authentication and fraud protection extended across Commercial Bank’s international card offerings.

The enhancement follows the successful integration of UnionPay cards into the Bank’s ComBank Access Control Server (ACS) platform, enabling secure authentication for online payments through UnionPay’s latest 3-D secure protocol.

Kapila Liyanage, AGM Personal Banking and Retail Products at Commercial Bank described this latest development as a reflection of the Bank’s commitment to continuously expand Sri Lanka’s digital payment ecosystem. “The benefits of technology must encompass the widest possible customer base to ensure seamless and secure service anywhere in the world,” he said. “By extending 3D secure authentication to UnionPay cards, we are providing another important segment of our customers with access to global-standard payment solutions.”

Crispin Wijesekera, Country Manager – Sri Lanka & Maldives at UnionPay International, said: “The introduction of 3D secure authentication for UnionPay cardholders by Commercial Bank of Ceylon marks an important milestone in strengthening the security and trust of digital payments in Sri Lanka. As e-commerce continues to grow, enhanced authentication technologies such as 3DS provide cardholders with an additional layer of protection while enabling a smooth and convenient online payment experience.”

“UnionPay remains committed to working closely with our banking partners to continuously enhance payment security standards and expand digital acceptance, ensuring that UnionPay cardholders can transact with confidence both locally and globally,” he added.

The new capability introduces UnionPay-specific Risk-Based Authentication (RBA) on the ACS platform. When a customer makes an online purchase at a participating merchant, the system intelligently evaluates the transaction in real time. Where additional verification is required, the system initiates a step-up authentication process by generating a One-Time Password (OTP), which is securely delivered to the cardholder’s registered mobile number and email through the Bank’s established SMS and email gateways. The cardholder then enters the OTP on the secure ACS interface to authorise the transaction.