Business
Japanese Embassy to follow up on President’s discussions in Tokyo
- Acting Ambassador inspires hope on resuming ODA projects spearheaded by Japan
- Hopes transparency and consistency will be enhanced through reforms
- Urges Sri Lanka to work on rooting out corruption and reforming SOEs
- Says Expo 2025 in Osaka can enhance attractiveness of Sri Lanka to the world
By Sanath Nanayakkare
Kotaro Katsuki, the Acting Ambassador for Japan in Sri Lanka said in Colombo on May 26 that the Japanese Embassy would follow through the bilateral economic cooperation and business discussions President Ranil Wickremesinghe had during his visit to Japan last week.
“President Ranil Wickremesinghe addressed the 28th Nikkei Future of Asia Conference held in Tokyo. During this visit, President Wickremesinghe held bilateral discussions with Japan’s Prime Minister Fumio Kishida, Minister of Finance Suzuki Shunichi, Minister of Foreign Affairs Hayashi Yoshimasa and Minister for Digital Transformation Taro Kono. President Wickremesinghe also exchanged views with the business community at economic events, which we believe will lead to stronger bilateral relations and we will be following through the action items of these business and economic events,” he said.
The Ambassador made these remarks while delivering the keynote speech as Chief Guest at the ceremonial opening of the ‘Build SL’ Housing and Construction International Exhibition 2023, organised by the Chamber of Construction Industry of Sri Lanka.
President Ranil Wickremesinghe during his visit to Japan last week engaged in a pivotal business roundtable on ‘Sri Lanka’s Economic Revival and Opportunities for Japanese Enterprise,’ where he presented the nation’s commitment to stabilising and liberalising the economy while earnestly inviting new Japanese ventures.
The Acting Ambassador further speaking at the Build SL launch ceremony said,” It is my great pleasure to be invited to the Build SL Housing & Construction Expo 2023 of Chamber of Construction Industry Sri Lanka. I congratulate Sri Lanka on obtaining the approval of the IMF Executive Board on March 20th for its Extended Fund Facility. This came after a lot of work done by the Sri Lankan authorities and recognition from the international community on the reforms that have been carried out such as fiscal reform. We welcome this major step towards the revitalization of the Sri Lankan economy. The ‘Build SL’ exhibition comes at a very timely moment, which brings together companies in the construction industry with great potential to stimulate economic growth of this country.”
“Last year, Japan and Sri Lanka celebrated the 70th anniversary of the establishment of diplomatic relations established in 1952, and the construction of the Inginimitiya Irrigation Dam began in 1978 as the first Official Development Assistance (ODA) project.”
“In the 80s, development projects were carried out at the Colombo Port. In the 90s, Baseline Road improvement and Japan-Sri Lanka Friendship Bridge expansion projects were implemented. In the 2000s, the Colombo International Airport improvement project and the construction of the Southern Expressway, the first expressway in Sri Lanka, and Colombo Outer Circular Highway as well as local road improvement and development projects added to the list. In the 2010s, consultations for Phase 2 of the Bandaranaike International Airport Improvement Project began, as well as major bridges construction project of the national road network and the landslide disaster protection project of the national road.”
“It’s a great honour to see some of the Japan’s iconic ODA projects adorning Sri Lanka’s currency notes in circulation blending with other distinct national symbols.”
“After my arrival in Sri Lanka in August 2021, the Golden Gate Kalyani Bridge, was completed in November of that year, This Bridge has become a landmark in the metropolis of Colombo and has contributed significantly to easing traffic congestion on surrounding roads, and is the first ever extradosed engineering design in Sri Lanka. We are delighted to have been able to transfer Japanese state of the art technology to Sri Lanka through this project.”
“The Japanese Embassy building in Gregory’s Road is currently undergoing refurbishing. In all of these projects, Sri Lankan construction companies have been good partners of Japanese companies in its implementation and the construction industry has made a significant contribution to the country’s development. However, we are aware that the entire industry has been severely affected by the current economic crisis, which has led to the suspension of public works projects.”
“Allow me to touch upon some contributions by Japan in response to the economic crisis in Sri Lanka. In order to support Sri Lanka, the Government of Japan has provided up to approximately 93 million USD worth of inundated grant assistance to Sri Lanka since 2022.”
“Sri Lanka has been going through difficult times due to a series of adversities such as the Easter Sunday terror attacks in 2019, the outbreak of COVID-19 and the ongoing economic and social crisis. However, now is a great opportunity to recover from this situation. To that end, based on the IMF agreement, we would be delighted to see Sri Lanka assiduously work on a series of reforms such as rooting out corruption and reforming state-owned enterprises.”
“Moreover, in order to make the economy more export-oriented and competitive as mentioned in the 2023 budget, it should entail further strengthening of the manufacturing industry across the board and promotion of the export industry by connecting it to the global supply chain. In considering future assistance to Sri Lanka, Japan would like to support Sri Lanka’s effort to make its economy more resilient.”
“In addition, it is essential to attract foreign investment in order to achieve sustainable and stable economic growth by way of improving the investment environment. We hope that transparency, efficiency and consistency will be enhanced through the reforms, which are taking place.”
“Now, I would like to catch up on future-oriented initiatives spearheaded by Japan that will lead to further development of both Japanese and Sri Lankan companies and collaboration between our respective companies.”
“The first initiative is related to climate change and decarbonisation. In October 2022, our two countries signed an agreement on a Joint Crediting Mechanism (JCM). With the collaboration between Japanese and Sri Lankan companies and the support from the Japanese government, this Joint Crediting Mechanism will allow for reducing greenhouse gas emissions by harnessing decarbonisation and renewable energy technologies to Sri Lanka. With this program, it is hoped that Japanese companies will find it more attractive to invest in the field of renewable energies or decarbonization projects in Sri Lanka with their innovative technologies and solutions.”
“Japan is going to hold Expo 2025 in Osaka in April 2025. This event will present another great opportunity to attract attention and investment from Japan to Sri Lanka, in the field of trade, investment and tourism. The Sri Lankan government has already expressed its intention to participate in this event. I hope that both the private and public sectors of Sri Lanka will jointly make the most out of this Expo 2025 to promote the attractiveness of Sri Lanka to the world. I hope that these initiatives will bring about new business opportunities for both Sri Lankan and Japanese businesses.”
“In the future, the development of the construction industry in Sri Lanka will become increasingly important for the country to overcome the current economic crisis and achieve sustainable development. Japan will continue to be involved in the resumption of ODA projects, including the Bandaranaike International Airport expansion project, which is currently suspended due to the situation in this country and in order to move forward, it’s important for the Sri Lankan Government to work on restructuring its debt and to improve the economic and financial situation in a transparent manner working closely with the IMF, Paris Club and other entities.”
The Acting Japanese Ambassador concluded his remarks by expressing Japan’s determination to continue to stand by Sri Lanka as its partner, and to support Sri Lanka to reach its full potential towards building a strong and vibrant economy.
Business
Successful government securities auctions anchor yield curve amid subdued trading
The secondary market yield curve remained broadly stable during the past week as subdued trading activity persisted around the Treasury Bond auction. Meanwhile, weighted average yields at the weekly Treasury Bill auction recorded declines across all tenors, First Capital Research stated in its latest weekly report.
According to the report, secondary market activity opened on a cautious note with selling interest emerging ahead of the T-Bond auction, causing a slight upward adjustment in yields amid moderate trading volumes. As the week progressed, investor participation remained muted, with market participants largely staying on the sidelines in anticipation of the auction, keeping the yield curve broadly unchanged.
Following the successful completion of the bond auction, the market witnessed mixed sentiment, with selling pressure concentrated at the short end and buying interest emerging in longer-dated maturities. However, activity remained subdued, and the yield curve largely held its ground through the weekend.
At the Treasury Bond auction held on July 13, 2026, the Public Debt Management Office (PDMO) successfully raised the full offered amount of LKR 150.0 billion. This comprised LKR 70.0 billion through the 2030 maturity, LKR 50.0 billion through the 2034 maturity, and LKR 30.0 billion through the 2037 maturity, at weighted average yields of 11.57%, 12.04%, and 12.58%, respectively.
Similarly, at the weekly Treasury Bill auction held on July 15, 2026, the PDMO raised the full offered amount of LKR 120.0 billion. The 3-month, 6-month, and 12-month bills raised LKR 55.0 billion, LKR 35.0 billion, and LKR 30.0 billion, respectively. Weighted average yields declined across all tenors, with the 3-month bill easing by 8 basis points (bps) to 10.13%, the 6-month bill by 3 bps to 10.27%, and the 12-month bill by 1 bp to 10.20%.
On the external front, the Sri Lankan Rupee (LKR) depreciated against the US Dollar, closing the week at LKR 336.3/USD compared to LKR 334.7/USD seen previously. Market liquidity within the banking system expanded significantly, starting the week at LKR 125.89 billion and closing higher at LKR 157.19 billion.
Thus the market data may highlight a clear divergence between short-term liquidity comfort and long-term caution, which points toward a gradual steepening of the yield curve in the near term.
The emergence of buying interest in longer-dated maturities (2034 and 2037) shows that institutional investors are eager to lock in double-digit yields while liquidity is high. This institutional support will likely place a temporary ceiling on long-term rates.
The mild depreciation of the rupee (moving to LKR 336.3/USD) acts as a cautionary counter-signal. If the currency continues to face pressure, it could limit how far short-term yields can fall, flattening the curve back out.
Business
CSE sees lack of investor participation, market turnover remains thin
The Colombo Stock Exchange (CSE) witnessed a quiet trading session on Friday, with the benchmark All Share Price Index (ASPI) edging marginally lower down by 42.16 points or 0.20% to close at 21,405.41.
Market turnover remained thin, coming in at Rs. 0.72 billion (approximately US$ 2.2 million), reflecting a general lack of investor participation as most sectors encountered downward pressure.
A total of 31.94 million shares changed hands across 13,397 trades, resulting in a negative market breadth where declining counters outpaced gainers 127 to 91. Blue-chip counters Sampath Bank PLC (SAMP), Lanka IOC PLC (LIOC), and John Keells Holdings PLC (JKH) anchored the day’s market turnover, while a notable off-market crossing was recorded in Chevron Lubricants Lanka PLC (LLUB). Trading volume in SAMP alone was highly concentrated, accounting for 12% of the day’s total turnover.
Sector performance remained mixed, with the Banking sector emerging as the most actively traded, posting a modest gain of 0.18%. The Health Care Equipment & Services sector secured the spot as the day’s best performer, rising by 0.55%.
Conversely, the Household & Personal Products sector faced the steepest decline, dropping 1.95% to finish as the worst-performing sector of the day. In terms of individual movements, Blue Diamonds Jewellery Worldwide PLC [Voting] (PINS.N) led the gainers, advancing by 6.11%, while Agstar PLC (AGPL.N) emerged as the top loser, shedding 9.09%.
By Hiran H. Senewiratne
Business
Going Green in Kirindiwela: Ceylinco Life begins work on 36th company-owned building
Ceylinco Life has commenced construction of its 36th company-owned branch building with the laying of the foundation stone for a new eco-friendly edifice in Kirindiwela, reaffirming the life insurance market leader’s continued investment in sustainable infrastructure and enhanced customer service.
The ceremony was attended by Ceylinco Life Chairman Mr R. Renganathan, Managing Director/CEO Mr Thushara Ranasinghe, members of the Board of Directors and senior management of Ceylinco Life, alongside valued customers and distinguished invitees from the Kirindiwela area.
Driven by its commitment to delivering superior service in a welcoming and customer-centric environment, Ceylinco Life has consistently invested in purpose-built branch buildings that serve as flagship locations. The Kirindiwela branch will join a network of 35 such company-owned buildings currently in operation across the country, each designed to offer elevated standards of service and modern facilities.
The new building will be constructed on company-owned land and developed in line with the Company’s green building concept, incorporating environmentally responsible design principles and energy-efficient technologies.
Spanning a floor area of 3,440 square feet, the Kirindiwela branch will utilise locally developed prefabricated construction technology from the National Engineering Research and Development Centre (NERD). The building is planned to operate on a 100 per cent self-sufficient solar electricity system, eliminating reliance on the national grid.
Key sustainability features of the proposed building include natural ventilation design, a topography-friendly layout, a green patch with grass grown in between interlocking blocks, energy-efficient air conditioning and lighting systems, and a rainwater harvesting facility. A dedicated Sewerage Treatment Plant (STP) will recycle wastewater for toilet flushing and gardening, while the company will practice the green concept of ‘Reuse’ in air-conditioning and electronic equipment, further minimising environmental impact.
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