Business
Confidence holds for now, but medium-term warning signals emerge
Inside the Central Bank’s Systemic Risk Survey
Sri Lanka’s financial sector enters the first half of 2026 with a cautiously steady footing, but undercurrents of concern over general domestic macroeconomic risks are growing more pronounced, according to the latest Systemic Risk Survey conducted by the Central Bank of Sri Lanka (CBSL).
The H1 2026 survey, carried out between December 19, 2025 and January 16, 2026 among 147 financial sector institutions, reveals a nuanced risk landscape: short-term confidence in the financial system remains positive, yet medium-term confidence has weakened, while the perceived probability of a high-impact negative event has edged up in both time horizons .
The CBSL has reclassified the previous broad category of ‘domestic macroeconomic risks’ into two distinct segments beginning H2 2025:
Fiscal and sovereign-related risks
General domestic macroeconomic risks
This refinement underscores the Central Bank’s intent to differentiate between sovereign balance sheet pressures and broader macroeconomic vulnerabilities such as growth slowdowns, inflation dynamics, labour market conditions and structural imbalances.
Survey responses for H1 2026 show that general domestic macroeconomic risks remain among the key concerns flagged by market participants. While no single risk category emerged as overwhelmingly dominant, perceptions were widely dispersed across several categories, indicating a multi-dimensional risk environment rather than a single flashpoint .
For businesses, this dispersion is telling. It suggests that the financial system is not currently gripped by a singular systemic threat but is instead facing a matrix of interlinked pressures – domestic macro fragilities, fiscal constraints, global uncertainties and institutional risks.
One of the more cautionary signals from the survey is the uptick in the perceived probability of a ‘high impact negative event’ in both the short term (next one year) and the medium term (next three years) .
Translated, market participants see a slightly elevated likelihood of a significant adverse shock.
In the Sri Lankan context, such a shock could stem from domestic macroeconomic strains, renewed inflationary pressures, currency volatility, growth disappointments, or fiscal slippages or from external spillovers amplified through trade, capital flows or geopolitical tensions.
Encouragingly, perceptions of overall confidence in the financial system remain positive in the short term. However, medium-term confidence has moderated .
The CBSL notes that this softening may reflect uncertainties prevailing during the survey period, including natural hazards and geopolitical tensions [such as U.S. and Israel attacking Iran] . For financial institutions and corporates alike, this indicates that while immediate systemic stability is not in question, risk buffers and contingency planning will be crucial over the next three years.
The Systemic Risk Survey, introduced in 2017 by the CBSL’s Macroprudential Surveillance Department, canvasses risk officers across licensed banks, finance companies, insurance firms, unit trust managers, stockbrokers, rating agencies and financial infrastructure providers .
For H1 2026, respondents assessed risks across seven major categories:
Global macroeconomic risks
Fiscal and sovereign-related risks
General domestic macroeconomic risks
Risks related to financial infrastructure
Financial market risks
Risks related to financial institutions
General risks
The broad spread of concerns across these categories suggests that the financial system is in a phase of recalibration rather than acute stress. However, the prominence of general domestic macroeconomic risks reinforces a key message for policymakers: structural reform momentum, fiscal discipline and macro stability remain central to sustaining financial sector resilience.
For corporate leaders and investors, the survey’s findings carry three strategic implications:
Growth stability, inflation management and policy consistency will heavily influence risk perceptions going forward.
Medium-term planning must factor in uncertainty. Even if near-term conditions appear stable, capital allocation decisions should account for potential volatility over a three-year horizon.
Risk is systemic, not isolated. The absence of a single dominant risk category implies interconnected vulnerabilities rather than a contained sectoral issue.
In essence, Sri Lanka’s financial system is not signalling alarm – but neither is it complacent.
For policymakers, the message is equally clear: maintaining macroeconomic credibility and strengthening buffers will be decisive in keeping confidence anchored – not just for the next year, but for the years beyond, the findings of the survey signalled.
-SN
Business
APHNH aims to make Sri Lanka more competitive for healthcare investment
Sri Lanka private healthcare leaders recently pledged an action plan with timelines to address the practical priorities of Sri Lanka’s healthcare sector while making it more viable for local and foreign investments.
The Association of Private Hospitals and Nursing Homes (APHNH) has committed to converting recommendations from its first Healthcare Leadership Summit into a trackable outcome document with defined actions, responsibilities, and timelines, marking a shift from discussion to implementation in sector reform efforts.
The summit held on March 9 at Waters Edge, Colombo, brought together hospital leaders, policymakers, regulators, insurers, and international experts to address practical priorities for Sri Lanka’s healthcare sector.
A key outcome of the summit was APHNH’s plan to consolidate recommendations into a single, trackable charter that will outline specific actions, assign responsibilities, establish timelines, and provide periodic progress updates.
“Our objective is to bring the right decision-makers into one room and focus on what can be implemented, not only what can be discussed, ” said Raveen Wickremesinghe, President of APHNH. “We are committed to taking the inputs from today and converting them into a clear, trackable set of actions that strengthens quality, transparency and public confidence, while supporting national health priorities. “
The summit featured insights from Dr. Hafeez Rahman Padiyath, Dr. Hamdani Anver, and Chandana L. Aluthgama on scaling quality and operational discipline. A keynote and fireside discussion with Dr. Paiboon Eksangsri, President of the Private Hospital Association of Thailand, explored lessons from Thailand’s private healthcare development and conditions for making Sri Lanka more competitive for healthcare investment.
By Sanath Nanayakkare
Business
Atlas SipSavi Naththal Poronduwa records positive public participation, benefiting 10,000 students
Atlas, Sri Lanka’s No. 1 learning brand, successfully concluded Atlas SipSavi Naththal Poronduwa, a national initiative that saw strong public participation in supporting children at risk of dropping out of school due to financial hardship. At a time when more than 22,000 Sri Lankan children leave school each year due to rising economic challenges, the initiative reinforced Atlas Sipsavi’s long-standing ‘No Child Left Behind’ promise by turning seasonal generosity into meaningful educational support.
The initiative reached 10,000 students, with beneficiary schools carefully selected to ensure support reached those most in need. The collected books were distributed to children at risk of dropping out, including those whose education had been disrupted by recent adverse weather, ensuring students had essential learning resources at the start of the new school term. Through its flagship Atlas SipSavi programme, the brand focused on improving access to education by providing essential learning tools, scholarships, and infrastructure to create better learning environments, bringing its purpose of ‘making learning fun’ to life in a meaningful way. As part of the initiative, the public was invited to donate schoolbooks, with each contribution matched one-for-one by Atlas. Donation boxes were placed at all Keells outlets island-wide and at Sarvodaya District Offices, making it easy for communities to take part.
Business
John Keells Logistics expands strategic engagement with CWIT through inter-terminal transport operations
John Keells Logistics (Pvt) Ltd (JKLL), one of Sri Lanka’s leading third-party logistics solutions providers, has successfully expanded its operational engagement with Colombo West International Terminal (Private) Limited (CWIT), through inter-terminal transport services within the Port of Colombo. This enhanced engagement further strengthens CWIT’s efforts to improve operational efficiency, reliability, and scalability across terminal activities.
Inter-terminal transport plays a critical role in modern port operations, requiring high levels of coordination, precision, and operational discipline. JKLL’s appointment for ITT operations reflects CWIT’s confidence in the company’s demonstrated capabilities in managing complex transport operations within a high-throughput port environment.
The ITT operations are underpinned by JKLL’s technology-enabled logistics framework, incorporating real-time fleet tracking, performance monitoring systems, and data-driven operational planning. These capabilities provide enhanced visibility and control over transport movements, while ensuring compliance with established safety, productivity, and service quality standards.
The awarding of this engagement to JKLL is a testament to the successful implementation of the Inter-Terminal Vehicle (ITV) operations undertaken by John Keells Logistics at CWIT during the previous year. The ITV assignment was executed through structured operating procedures and disciplined service delivery, contributing to improved cargo movement, operational coordination, and service continuity within the terminal. The performance outcomes of the ITV operations provided the basis for the subsequent expansion of the partnership into ITT services.
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