Business

Sri Lanka ratings upgrade depending on debt restructuring parameters and reforms programme

Published

3 years ago

2023/04/3

Thilina Walpola

Bingumal Thewarathanthri, CEO, Standard Chartered Bank

by Sanath Nanayakkare

Sri Lanka can reasonably expect a much desired ratings upgrade after the government of Sri Lanka has announced its debt restructuring plans and its sustained commitment to the economic reforms programme, Bingumal Thewarathanthri, Chief Executive Officer, Standard Chartered Bank said recently. He made this remark while addressing a Central Bank hosted webinar titled,”What is next for Sri Lanka in the wake of the IMF Programme?”

Keynote Speaker at the webinar was Dr. Indrajit Coomaraswamy, Former Governor, Central Bank of Sri Lanka. Deshal De Mel, Economic Advisor, Ministry of Finance and Murtaza Jafferjee, Managing Director, JB Securities were the other panelists.

The CEO of Standard Chartered Bank said that Sri Lanka is still not out of the woods and everybody needs to be very clear on that. Getting this EFF done in a six months was outstanding work compared to countries like Zambia and Surinam. But we should not overcelebrate it. Although it is commendable, we can’t be complacent because we can’t forget what we went through last year,” he said.

“There are guidelines on fiscal reforms in the IMF framework with specific targets in terms of debt to GDP ratio as well as a surplus in the primary account by 2025, among other things. Now, a lot of people are talking about a ratings upgrade for Sri Lanka by the global ratings agencies. But we have to wait until the government announces the debt restructuring parameters. After that, there will be some clarity and hopefully there will be an upgrade. However, to what level it would be upgraded, we don’t know. Further, it substantially depends on how Sri Lanka commits itself to the economic reforms programme going forward. The IMF is asking us to do something that we have been talking about in terms of our public sector workforce.

We have to re-purpose and re-size its 1.7 million people without asking them to leave their jobs. If you re-purpose at least half a million government sector workers into different things, the country will get productivity from them. Re- purpose and re-size, that’s the way to go. I am not a big fan of trying to save money from the government’s salary bill which is more than Rs. 1.2 trillion. We need to look at paying the right people better. I don’t need to tell you how doctors and professionals in various industries are getting paid.. We can’t retain talent at that level and we are losing over 50 doctors per month as we speak. That’s a thing we must fix. The IMF would give us broad guideline, but we have to fix things at the ground level appropriately.”

“We might receive some financing from the ADB and the World Bank. But real capital can come through FDIs. They are rare these days because the global markets are struggling, and so, capital is rare. So If you expect FDIs to flow into Sri lanka, first we need to understand why investors should come to Sri Lanka. Our investment policy is not very stable because it changes with change of government. So is our tax structure. Therefore, I think our investment policies have to be documented at constitutional level.

They should be made constitutional laws which can’t be changed without a proper mandate. We need to clearly understand what will take our GDP to the next level. You would have seen the predictions by the authorities as well as from the IMF, I think we are forecasting 2.5% growth and I think that is below Sri Lanka’s potential. Sri Lanka should be firing about mid-single digit growth in our view compared with other emerging markets. Sri Lanka has that potential. It is very important for us to understand the strategic pillars to take the economy to that level and ensure that the platform is well-documented. Basically there needs to be a legal framework around it so that changes of governments cannot change the investment policies,” he said.

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Business

News of a road map to West Asian peace brings oil price relief

Published

1 min ago

2026/06/23

Sahan Weerasooriya

Global oil markets saw Brent crude slip below US $ 80 dollars per barrel yesterday as stock investors responded to a road map to a final US-Iran peace agreement mediated by Qatar and Pakistan.

Amid those developments both indices moved downward. The All Share Price Index went down by 84.91 points, while the S and P SL20 declined by 15.33 points.

Turnover stood at Rs 1.2 billion with two crossings. Those crossings were reported in Ceylinco Holdings, which crossed 40000 shares to the tune of Rs 124 million; its shares traded at Rs 3100 and NDB 196,000 shares crossed for Rs 22 million; its shares sold at Rs 110.

In the retail market, companies that mainly contributed to the turnover were; NDB Rs 90 million (821,800 shares traded), Lanka Realty Investments Rs 81 million (1.4 million shares traded), Access Engineering Rs 36 million (461,000 shares traded), Commercial Bank Rs 28 million (136,000 shares traded), Overseas Realty Rs 25 million (495,000 shares traded), JKH Rs 24 million (1.2 million shares traded) and Royal Ceramics Rs 22 million (484,000 shares traded). During the day 38 million share volumes changed hands in 14650 transactions.

It is said that banking sector counters, especially NDB, led the market, while construction related companies, especially Access Engineering and Overseas Reality, performed well.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was Rs 329.50 buying, Rs 338.50 selling; the euro was Rs 375.1846 selling, Rs 389.1016 buying; and the pound was Rs 434.5227 buying, Rs 448.5683 selling.

By Hiran H Senewiratne

Business

Published

2 mins ago

2026/06/23

Sahan Weerasooriya

From Left: Shafiya Careem, Head of Marketing and Communications, FitsAir; Najath Suruba, Acting Chief Commercial Officer, FitsAir; Kamal Munasinghe, Senior Vice President, Cinnamon Hotels & Resorts; Nalaka Amaratunga, Senior Vice President, John Keells Holdings PLC; Victoria Fuh, Head of Commercial, Cinnamon Hotels & Resorts; Anupama Ranasinghe, Manager Marketing, Cinnamon Life at City of Dreams and Ammar Kassim, Executive Director, FitsAir

FitsAir commences only direct air service between Colombo and Ahmedabad

FitsAir officially commenced direct operations between Colombo and Ahmedabad on 19th June 2026, becoming the only airline to offer non-stop flights between the two cities. Operating three times weekly, the new service strengthens connectivity between Sri Lanka and Western India while offering greater convenience for both leisure and business travellers.

Ahmedabad, one of India’s leading commercial centres and the gateway to Gujarat, represents a key market for tourism, trade and investment. The new route supports growing demand for direct travel while creating new opportunities for business and cultural exchange between the two destinations. only

The inaugural flight marks another milestone in FitsAir’s network expansion strategy, reinforcing the airline’s commitment to enhancing regional connectivity through affordable and convenient travel.

A special launch ceremony was held to commemorate the occasion, attended by representatives from FitsAir, the travel trade, tourism sector, Walker’s Tours, Cinnamon Hotels & Resorts and Cinnamon Life City of Dreams.

Speaking at the launch, Ammar Kassim, Executive Director of FitsAir, said, Routes transcend airports- they connect dreams, drive trade, and build partnerships. We are excited to launch our newest direct service between Colombo and Ahmedabad, the only non-stop link of its kind. This milestone simplifies travel while unlocking new opportunities for tourism, trade, and economic collaboration between Sri Lanka and Gujarat in India.”

Passengers can now book flights between Colombo and Ahmedabad through www.fitsair.com, the FitsAir ticketing office and authorised travel agents.

Business

EU’s new anti-greenwashing rules pose major challenge for Sri Lankan exporters

Published

1 day ago

2026/06/22

Thilina Walpola

This new directive applies to businesses across multiple sectors, of any size, that export products or services to the EU market.

Countdown to September 2026 begins

Sri Lankan exporters selling into Europe may soon face one of the most significant regulatory shifts in recent years as the European Union prepares to enforce sweeping new rules aimed at eliminating ‘misleading’ environmental and sustainability claims.

The regulation, known as the Empowering Consumers for the Green Transition Directive (EmpCo) – Directive (EU) 2024/825, will become fully enforceable across all EU member states from September 27, 2026. While the directive is primarily designed to protect European consumers from so-called ‘greenwashing,’ and it carries important implications for exporters worldwide, including those in Sri Lanka.

Compliance experts warn that many local businesses remain largely unaware of the new requirements despite their potential impact on market access, brand reputation, and regulatory compliance.

The directive introduces a simple but demanding principle: companies must be able to substantiate environmental and sustainability claims with credible evidence. Generic descriptions such as ‘eco-friendly,’ ‘green,’ ‘sustainable,’ ‘responsible,’ ‘carbon neutral,’ or ‘climate friendly’ may no longer be used freely unless they can be verified through reliable data and supporting documentation.

For Sri Lankan exporters, this represents a significant shift. Sustainability claims increasingly appear on product packaging, websites, social media campaigns, annual reports, tourism marketing materials, and corporate communications. Under the new framework, such claims could face scrutiny from regulators, consumers, retailers, and civil society groups.

The directive also places particular emphasis on future environmental commitments. Claims such as ‘Net Zero by 2040’ or ‘Carbon Neutral by 2030’ may require businesses to demonstrate clear implementation plans, measurable milestones, and systems for monitoring progress rather than relying on aspirational statements alone.

An environmental compliance expert told The Island Financial Review that this transforms sustainability from a communications exercise into a governance issue. “Responsibility will no longer rest solely with sustainability departments. Company directors, senior executives, marketing teams, procurement professionals, and compliance officers will all have roles to play in ensuring that public claims can withstand regulatory scrutiny. The potential costs of non-compliance are considerable. Under the directive, penalties may include fines of up to four percent of annual turnover generated within the relevant EU member state, restrictions on marketing activities, increased regulatory investigations, and challenges from consumer organisations and commercial partners.”

“The reputational consequences may prove even more damaging. In highly competitive export markets, trust has become a critical business asset. Companies found to be making unsubstantiated environmental claims could face long-term damage to relationships with buyers, retailers, and consumers.”

“The timing is particularly important for Sri Lankan businesses because compliance preparations, reporting frameworks and adjustments are needed before the enforcement date arrives.”

“Businesses supplying European markets are therefore being encouraged to begin assessing their exposure now rather than waiting until the last minute. Early preparation could help exporters safeguard market access, maintain buyer confidence, and strengthen their competitive position in an increasingly sustainability-conscious global economy.”

“For Sri Lanka’s export sector, the message from Europe is becoming increasingly clear: sustainability claims will no longer be judged by how compelling they sound, but by how convincingly they can be proven,” he said.

As the countdown to September 2026 begins, exporters may need to ask themselves a critical question: Are their sustainability claims ready for a new era of accountability?

By Sanath Nanayakkare