Business
Economic managers face urgent need for vigilant policy management amid external pressures
By Sanath Nanayakkare
Sri Lanka’s macroeconomic landscape continues to present a nuanced picture of post-crisis recovery, characterised by steady industrial expansion and monetary stability on one front, alongside lingering external challenges in the tourism sector on the other.
Recent data released by the Central Bank of Sri Lanka (CBSL) underscores the delicate balancing act facing policymakers as the economy strives to cement its growth trajectory amid evolving domestic and international headwinds.
On the monetary policy front, the Central Bank has maintained its Overnight Policy Rate at 8.75% following its July review, preserving a measured stance designed to anchor expectations after earlier adjustments aimed at curbing inflationary pressures.
Headline inflation, as measured by the Colombo Consumer Price Index (CCPI), edged up slightly to 7.3% in July, moving up from 6.8% in June. This modest uptick has been largely attributed to housing rent adjustments and the direct pass-through effects of energy price adjustments.
Meanwhile, the external sector demonstrates underlying buffers, with gross official reserves standing at USD 6.45 billion at the end of June, while the Sri Lankan rupee has traded within a stable band against the US dollar.
A notable area of scrutiny in the latest economic updates is the performance of the tourism industry. The sector experienced a challenging first half of 2026, with cumulative earnings dropping by 11.8% year-on-year to USD 1.51 billion. Tourism revenue for June specifically stood at USD 151.1 million, reflecting a contraction weighed down by regional air connectivity disruptions stemming from ongoing geopolitical tensions in the Middle East.
In response to these developments, authorities have revised their full-year projections, adjusting targets to 2.5 million tourist arrivals and USD 3.5 billion in cumulative revenue. Industry stakeholders, however, remain optimistic that targeted promotional strategies emphasising high-spending regional markets can help bridge the gap during the upcoming peak seasons.
Conversely, the domestic industrial and manufacturing landscapes offer a strong counterweight to external leisure sector pressures.
According to the Central Bank’s Purchasing Managers’ Indices, the Manufacturing PMI registered a robust index value of 55.0 in July, signaling an accelerated expansion compared to the previous month.
This upward momentum was propelled primarily by strong performances in the food and beverages sector, alongside encouraging gains in new orders and production sub-indices.
Furthermore, the Services sector PMI recorded an even stronger expansion at 61.4, driven by broad-based improvements across transportation, financial services, and upcoming cultural events, signaling that domestic economic engines are gathering momentum.
“As Sri Lanka presses ahead with structural and macroeconomic reforms, sustaining this industrial momentum while revitalising tourism inflows will remain critical to achieving long-term stability. Ultimately, external shocks and supply-chain pressures continue to demand vigilant economic management to make the recovery sustainable,” economic analysts say.
Business
Financial literacy central to country’s development – CBSL Governor
By Hiran H. Senewiratne
Sri Lanka’s financial literacy rate is approximately 58 percent. Such literacy is absolutely necessary for the inclusion of people in the country’s financial system which in turn is central to overall economic development, Central Bank Governor Dr. Nandalal Weerasinghe said.
‘One needs to have knowledge and skills of a financial nature to figure in financial inclusiveness. While 86 percent of Sri Lanka’s population has access to the country’s financial system, 82 percent of the public has at least a savings account in the country’s banking system, Dr Weerasinghe said.
The Governor made these comments recently at the inauguration of Financial Literacy Month 2026 at the Central Bank’s Centre for Banking Studies, Rajagiriya.
Dr. Weerasinghe added: ‘Suitable, affordable and quality financial instruments are needed to enhance financial literacy in the country.
‘Financial information has to be accurate, risk-free and accountable, thus creating confidentiality in the financial system, which would enable the sector to reach greater heights’.
Meanwhile CBSL sources said: ‘The Literacy Month opened with the two-day ‘FinLit Expo Colombo’. The expo gives the public the opportunity to engage with institutions, better understand financial services, gain practical insights into managing their finances and learn how to protect themselves from financial fraud and scams.
‘The CBSL is leading the program in collaboration with stakeholder institutions. It forms part of the Financial Literacy Roadmap for Sri Lanka, which is implemented under the National Financial Inclusion Strategy (NFIS), the national framework for widening access to and use of formal financial services.
‘The Colombo event will be followed by six regional ‘FinLit Expos’ aimed at direct engagement with local communities. Partner institutions will also run awareness activities. Together, the events are intended to provide financial education to communities and encourage people to apply financial knowledge in everyday life.
‘A public awareness campaign on television, radio, newspapers and social media will extend the program’s reach. The program also includes digital financial literacy activities and the promotion of QR codes and other online payment methods.
‘The public and stakeholder institutions are encouraged to take part in the month’s activities under the theme, “Towards a Financially Literate Sri Lanka”.
Business
HUTCH strikes five awards as the only telco honoured at SLIM DIGIS 2.6
HUTCH Sri Lanka strengthened its position as a leader in digital engagement by securing five accolades at SLIM Digis 2.6, emerging as one of the most recognized brands at this year’s digital excellence awards. The achievement was further highlighted by HUTCH being the only telecom operator to be recognized at the event.
Organized by the Sri Lanka Institute of Marketing (SLIM), SLIM Digis is Sri Lanka’s premier platform celebrating excellence, innovation, and outstanding achievements in the digital marketing industry. The recognition highlights HUTCH’s growing strength in digital-first, agile, and creative marketing, and its ability to respond to everyday moments, engage audiences, and deliver impactful digital campaigns.
The Gold Award for Best Use of Agile and Moment Marketing, a Silver for Best Use of Digital in a Marketing Campaign, and a Bronze for Best Performance Marketing were all awarded for “Keeping Sri Lanka Connected Through Ditwah,” HUTCH’s response to the cyclone that struck Sri Lanka in November 2025, recognised for the speed and relevance with which HUTCH kept customers better connected and informed.
HUTCH Roaming also earned two further Bronze awards for Best Use of Digital in a Marketing Campaign and Best Use of Creative Content. Bringing together AI-led storytelling, the campaign was designed around distinct customer clusters, each characterized by unique travel behaviours, needs, and perceptions, delivering relevant content for different audiences within a single overarching campaign.
“These wins are a strong reflection of how HUTCH approaches marketing today, staying close to the moments that matter to our customers and responding with speed, relevance, and creativity. Being the only telco recognised at SLIM DIGIS 2.6, and across five categories, is proof that agility and thoughtful storytelling can go hand in hand. This recognition reflects the collective efforts with our strategic partners, whose collaboration, expertise, and shared commitment brought great campaigns to life,” said Hamdhy Hassen, Chief Marketing Officer, HUTCH Sri Lanka.
Business
Fairway Colombo named Official Accommodation Partner of Manhunt International 2026
Sri Lanka’s Smart Luxury Business Hotel to Host Delegates and Contestants from Over 40 Countries as the Island Nation Hosts Its First-Ever Global Pageant of This Scale
Fairway Colombo, a subsidiary of Fairway Holdings (Pvt) Ltd, has been appointed as the Official Accommodation Partner for Manhunt International 2026, one of the world’s most prestigious male pageants, scheduled to take place in Sri Lanka.
The event marks a historic milestone for Sri Lanka, as the country prepares to host a global pageant of this scale for the very first time. More than 40 contestants representing countries from across the world will arrive in Colombo, bringing together diverse cultures, international media attention, and a global audience — further strengthening Sri Lanka’s position as a premier destination for tourism, culture, and hospitality.
As the official accommodation partner, Fairway Colombo will welcome and host international delegates and contestants throughout their stay in Colombo, delivering the exceptional hospitality experience and personalized service that the hotel is recognized for.
A Landmark Partnership for Sri Lankan Tourism
“We are truly honored to be selected as the Official Accommodation Partner for Manhunt International 2026. This partnership is a proud moment not only for Fairway Colombo but also for Sri Lanka as a whole. Hosting an event of this global stature provides us with an opportunity to showcase our commitment to smart luxury, innovation, and authentic Sri Lankan hospitality to an international audience. We look forward to creating a memorable and seamless experience for all delegates and guests,” said Avinga Wanigasekara, General Manager of Fairway Colombo.
Strategically located in the heart of Colombo’s historic Fort district, Fairway Colombo is recognized as a Smart Luxury Business Hotel, combining modern comfort, advanced technology, and exceptional service. As part of Fairway Holdings (Pvt) Ltd, the property represents the group’s vision of delivering innovative, world-class experiences across the hospitality and leisure sectors.
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