Business

Igniting global talent: Port City Colombo’s role in Sri Lanka’s next growth chapter

Published

1 month ago

2026/07/23

By Sal Laher

Every new market decision eventually becomes a test of confidence: can the country supply the talent, can the work scale, and can the rules hold long enough to matter. That is the lens through which we have looked at Sri Lanka, and across IFS and now IGT I, the answer to each of those questions has been the same.

For more than three decades, Sri Lanka has built a serious technology services industry with real depth, real clients and real global relevance. The Export Development Board identifies ICT services as the country’s second-largest export earner, supported by more than 500 companies and a workforce of around 146,000 people.

In 2025, ICT and BPM export earnings reached US$1.64 billion, overtaking tea as an export earner for the first time. That is worth pausing on. A knowledge industry has surpassed the country’s most iconic export, and it did so the hard way, with firms setting up where they could, growing as they could manage, and scaling within the limits of the space and infrastructure available in Colombo. If that was possible in a fragmented, piecemeal environment, the more useful question is what becomes possible when the physical, legal and financial architecture is built deliberately to support that kind of ambition. That is what Port City Colombo is for.

Most people in the industry will tell you the real figure runs higher still, because a great deal of the work is invoiced through offshore entities and never fully recorded here, and that tells you something important: the capability is world class and globally competitive, and what has been missing is an operating environment built to keep more of that value inside the country.

As someone with real skin in the game, I can say with confidence that Port City Colombo is that environment. IGT I moved early in March 2024 into the zone, and we had our first client shortly after. Since then we have grown to just over 500 people, with new clients and open offers that take us beyond our initial growth, serving international clients across the Americas, Europe, and Middle East, and we expect to pass our budgeted target for the year. I have opened operations in many countries over my career, and I have rarely seen one move at this speed.

The story did not begin from zero. It came from what we had already seen building IFS in Sri Lanka, where we experienced first-hand the quality of the talent here and the role this country could play inside a high-growth international technology company. The investors behind IFS then asked whether the same model could work for other companies in their portfolio. It was that question, on top of the experience we had built in Sri Lanka, that sparked IGT I: Ignite Global Talent. We understood that the capability already existed. It just needed the right commercial, flexible, and independent structure around it.

Port City Colombo is foundational to this in ways that are sometimes underestimated. Operating in a designated foreign currency environment removes layers of friction that global service businesses feel immediately, because payroll, client invoicing and procurement all become easier to manage when the currency framework is consistent. For a company serving global clients, that matters in ways that go beyond accounting tidiness, reducing hedging pressures and the small inefficiencies that accumulate across a business operating in two currencies at once.

The zone also empowers companies to think differently about talent. Where a role requires international expertise, the framework allows that conversation to happen more practically. At the same time, the pull for Sri Lankan professionals is real. Much of our hiring has come from professionals choosing to build their careers here, drawn by the scale of the work, direct exposure to international clients, and the chance to be part of something built from the ground up. That kind of pull is not something a financial model captures easily, but it is one of the strongest signals a new business district can send, particularly when it draws back talent that might otherwise have built its career overseas.

There is a wider point here. For years the best people have left for opportunities abroad, taking their skills and their earnings with them. Port City Colombo offers a way to keep more of that talent at home, in work that meets global standards and increasingly pays at a level that reflects it, with the contribution staying inside Sri Lanka’s economy.

None of this is guaranteed to continue on its own. The confidence that has brought companies like ours into the zone, and the talent that has followed, now needs protecting, and what it mostly comes down to is predictability. An investor can work with rules that are demanding and rules that are clear. What no one can plan around is a rule that keeps moving, and the sharpest example right now is how employees are taxed. The treatment of employee tax in the zone changed under the 2026 amendment to the Colombo Port City Economic Commission Act, moving from an open-ended exemption to a transitional period for existing entities and standard rates for new entrants. Whatever the merits of that specific change, the cost of leaving the position unsettled is higher than the cost of any particular rate, because uncertainty over employment costs is what stops an investor committing.

The same need for predictability runs through the everyday machinery of operating here. Port City Colombo is a world-class development still partly tethered to paper, physical signatures and processes that move more slowly than a global business expects, and that is not about any one institution but about the systems of the zone and the systems of the wider country learning to work together. A business environment built to attract international companies cannot ask them to run on manual processes where digital workflows should exist. Singapore launched TradeNet in 1989 and cut trade document turnaround from days to minutes. Dubai made its government fully paperless by 2021. That is the distance Sri Lanka still has to cover, and it is well within reach. I still spend a good part of my week on wet signatures, company seals and manual form entry, and closing that gap has to start somewhere. Digital signatures within Port City Colombo would be a logical first step.

I want to be fair about where things stand. The Cabinet approval of 77 Businesses of Strategic Importance in April 2026 is a meaningful public signal that the zone is moving from promise to activation. The foundations are real and the direction is right.

Which is why the question itself has changed. For years the doubt was whether a zone like this could work in Sri Lanka at all, and from where I sit, that question has begun to answer itself. The more important question now is how quickly the country makes it easy for the next ten companies to reach the same conclusion I have, and to find what we found when we looked properly: that the talent was always here, waiting for somewhere worthy of it, with the innovation, speed and digital ambition, including AI, to match, and that combination will set Port City Colombo apart in the years to come.

The author, Sal Laher, is Group CDIO and EVP at IFS, and Managing Director of IGT I Outsourcing Lanka.

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Business

NSB Group delivers Rs.22.5bn operating profit in 1H 2026 as lending and core income strengthen

Published

11 hours ago

2026/09/1

Sahan Weerasooriya

Dr. Harsha Cabral / Rohana Bandara Weerakoon

National Savings Bank Group (NSB) recorded resilient core banking performance during the first six months of 2026, supported by stronger net interest income, a notable expansion in fee-based earnings and continued growth in loans and advances. The results demonstrate the Bank’s capacity to maintain business momentum while navigating cost pressures and volatility in market-related income.

The Bank reported total operating income of Rs. 45.8 billion for the period, an increase of 3.1% compared with Rs. 44.5 billion in the corresponding period of 2025. Net operating income increased by 2.3% to Rs. 49.1 billion from Rs. 48 billion reported a year ago, providing a stable foundation for the Bank’s operations and customer-focused growth agenda.

Net interest income rose by 5.5% year-on-year to Rs. 44.2 billion, compared with Rs. 41.9 billion in the first half of 2025. This improvement was supported by a 4.7% reduction in interest expenses to Rs. 54.5 billion, despite a marginal moderation in interest income to Rs. 98.6 billion. The result reflects disciplined balance-sheet management and the Bank’s continued focus on maintaining a sustainable funding and asset mix.

The Bank also achieved substantial growth in fee-based earnings. Net fee and commission income increased by 37.0% to Rs. 1.40 billion, from Rs. 1.02 billion a year earlier. The increase underlines the growing contribution from transaction-led services and the Bank’s ongoing efforts to broaden non-interest revenue through customer-centric and digitally enabled banking solutions.

Profit before Tax (PBT) amounted to Rs. 22.6 billion, compared with Rs. 24.1 billion in the first half of 2025, while profit after tax stood at Rs. 13.4 billion, compared with Rs. 14.7 billion. The moderation in profitability principally reflected higher operating costs and the lower contribution from trading and derecognition gains. Personnel expenses increased to Rs. 13.8 billion from Rs. 11.5 billion, while other operating expenses rose to Rs. 4.3 billion from Rs. 4.1 billion.

Despite these pressures, the Bank preserved a substantial earnings base and continued to invest in the people, systems and service capabilities required to improve operational resilience and the customer experience. Income tax for the period amounted to Rs. 9.14 billion, while VAT and the Social Security Contribution Levy on financial services together exceeded Rs. 7.29 billion. In addition, the Bank declared a dividend of Rs. 7.4 billion to the Government as its sole shareholder. Accordingly, NSB’s total contribution to the Government through dividends, taxes and levies amounted to Rs. 23.8 billion, underscoring the Bank’s significant contribution to public finances and national development.

Commenting on the results, National Savings Bank Chairman Dr. Harsha Cabral PC said: “The first-half results reflect the resilience of NSB’s core business model and the enduring confidence placed in the Bank by generations of Sri Lankans. Our priority remains the prudent stewardship of public savings while supporting productive economic activity, financial inclusion and sustainable national development.”

NSB’s total assets increased by 2.1% during the first six months of the year to Rs. 1.87 trillion, from Rs. 1.83 trillion at end-December 2025. Loans and advances recorded a strong 9.1% expansion to Rs. 601.01 billion from Rs. 550.83 billion, demonstrating the Bank’s continued support for the financing needs of individuals, households and eligible institutional customers within its mandate.

Deposits, the principal source of funding for NSB, increased by 1.5% to Rs. 1.63 trillion from Rs. 1.61 trillion. The sustained growth in the deposit base reflects continued public confidence in the Bank and provides a stable platform for its savings-led business model. The Bank’s financial position remained sound, with total shareholders’ equity increasing by 4.1% to Rs. 123.91 billion from Rs. 119.05 billion. Retained earnings rose by 12.4% to Rs. 52.34 billion, further strengthening the Bank’s capacity to support future growth and absorb potential shocks.

Acting General Manager/CEO of National Savings Bank, Mr. Rohana Bandara Weerakoon, said: “Our focus is on translating the Bank’s trusted savings franchise into sustainable customer value. The growth achieved in lending, fee income and shareholder’s equity is encouraging. We will continue to strengthen digital access, service quality, cost discipline and risk management while delivering on NSB’s national mandate.”

The Bank’s profitability indicators continued to reflect the strength of its core banking activities, although higher operating expenses moderated overall returns. The net interest margin improved to 4.81% from 4.74% at the end of 2025, demonstrating an improvement in the Bank’s core interest spread. Return on assets before tax remained broadly stable at 2.46%, compared with 2.48%, while return on equity stood at 22.30%, compared with 25.08% at the end of 2025.

Asset quality improved during the first half of 2026. The net Stage 3 loans ratio declined to 2.05% from 2.52% at the end of 2025, indicating a reduction in net impaired credit exposures relative to the loan portfolio. At the same time, the Stage 3 impairment coverage ratio strengthened to 59.77% from 58.54%, reflecting improved impairment coverage against Stage 3 loans.

NSB maintained capital buffers comfortably above the applicable regulatory minimum requirements. The Tier 1 capital ratio stood at 19.72%, compared with the regulatory minimum of 8.5%, while the total capital ratio stood at 21.1%, well above the minimum requirement of 12.5%. These ratios demonstrate the Bank’s capacity to absorb potential risks while supporting continued business growth.

The Bank also maintained a strong liquidity and stable funding position. The all-currency liquidity coverage ratio stood at 311.88%, substantially above the statutory minimum of 100%, reflecting the availability of sufficient high-quality liquid assets to meet short-term liquidity requirements. The net stable funding ratio stood at 196.17%, also comfortably above the regulatory minimum of 100%, demonstrating the stability of the Bank’s longer-term funding profile.

Business

Petrol price reduction boosts ASPI

Published

11 hours ago

2026/09/1

Sahan Weerasooriya

By Hiran H. Senewiratne

CSE data indicated yesterday that the benchmark All Share Price Index moved up 0.11 percent mainly due to the petrol price reduction among some categories of fuel, market analysts opined.

Despite the lingering tensions in West Asia the market performed well.

The ASPI was up 22.93 points at 21,338.84, while the more liquid S&P SL20 was up 0.22 percent, or 13.03 points, at 6,018.37.

Market turnover was Rs 1.014 billion. Capital goods led turnover with Rs 300.64 million. During the day two crossings took place. Those crossings were reported in Access Engineering 1 million shares crossed to the tune of Rs 75 million and its shares traded at Rs 75 and Sierra Cables 850,000 shares crossed for Rs 31 million; its shares traded at Rs 36.70.

In the retail market, companies that mainly contributed to the turnover were; Sierra Cables Rs 77 million (2 million shares traded), Brown’s Investments Rs 68 million (13.3 million shares traded), CCS Rs 60 million (494,000 shares traded), Citizens Development Bank Rs 30 million (866,000 shares traded), Overseas Realty Rs 27 million (513,000 shares traded), Sampath Bank Rs 26 million (185,000 shares traded) and Commercial Credit and Finance Rs 24 million (217,000 shares traded). During the day 51 million share volumes changed hands in 15669 transactions.

Positive contributors to the ASPI were; Browns Investments (up 8.16 percent at Rs 5.30 ), Carson Cumberbatch (up 4.13 percent at Rs 749.50 ), Windforce (up 4.63 percent at Rs 40.70 ), JKH (up 0.51 percent at Rs 19.90 ) and DFCC Bank (up 0.99 percent at Rs 128.00 ).

Vallibel One (down 2.64 percent at Rs 88.50 ), Melstacorp (down 0.52 percent at Rs 190.00 ), and Hatton National Bank (down 0.33 percent at Rs 380.25 ) were top negative contributors.

Ceylon Land & Equity announced a proposed first and final scrip dividend of Rs 0.043 per ordinary share for the financial year ended March 31, 2026, subject to shareholder approval at its Annual General Meeting on September 23, 2026.

The dividend involves capitalizing Rs 39.61 million to issue 4,553,230 new ordinary shares at a consideration of Rs 8.70 per share, in the proportion of 1 new share for every 202.33 existing shares.

Shares of Ceylon Land & Equity closed down 1.16 percent at Rs 8.50.

Maharaja Foods announced a final scrip dividend of Rs 0.10 per ordinary share for the financial year ended March 31.

Following a 15 percent withholding tax deduction, the net dividend entitlement of Rs 0.085 per share will be satisfied by issuing 730,468 new ordinary shares at a consideration of Rs 16.00 per share, in the proportion of 1 new share for every 188.2354873861 existing shares held.

Shares of Maharaja Foods were trading up 0.61 percent at Rs16.50.

Yesterday the rupee was quoted at Rs 327.68/75 to the US dollar in the spot market, stronger from Rs 327.98/328.04 Friday, while bond yields were broadly steady, dealers said.

The telegraphic transfer rate for the dollar was 323.50 buying, 332.50 selling; the euro was 372.5779 buying, 386.3587 selling; and the pound was 437.1858 buying, 451.2942 selling.

Business

A huge welcoming ‘Yes’ to Ai-CHA

Published

11 hours ago

2026/09/1

Sahan Weerasooriya

Ai-CHA, the Indonesian origin, ice cream and bubble tea brand is establishing itself as an irresistible, super-cooling refreshment among consumers in the bustling coastal town of Negombo, besides proving a big hit among other Sri Lankan urban populations as well. The numbers visiting the initial Ai-CHA ice cream parlour in Negombo is solid evidence that the ice cream brand is proving a crowd-puller of the first magnitude.

Ai-CHA Ice cream and bubble tea is already present in over 2000 locations world wide and has made striking inroads into global consumer palettes. Referred to as ‘a popular international soft-serve ice cream and bubble tea brand’, these ideal thirst quenches are made of high quality ingredients such as, milk, milk powder, cream, sugar and water. The prices are purse-easy and affordable.