The Sri Lanka Housing Development Finance Corporation Bank, incorporated under the Sri Lanka Housing Development Finance Corporation Bank Act No. 7 of 1997, is a licensed specialized bank listed on the Stock Exchange.

The prime objective is to provide housing finance and other related services. The State Mortgage and Investment Bank, established under the State Mortgage and Investment Bank Act No. 13 of 1975, is a fully state-owned licensed specialized bank that provides housing-related mortgage credit facilities. Both of these banks are relatively small financial institutions with a small market share.

The Central Bank of Sri Lanka has indicated that the current business models of these banks are unsustainable due to their limited deposit-raising capacity, poor profitability, and inability to meet minimum capital adequacy requirements.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as the Minister of Finance, Planning, and Economic Development, to take necessary steps to transfer all the shares of the Government of the Sri Lanka Housing Development Finance Corporation Bank to the Bank of Ceylon and to continue operations as a subsidiary bank of the BOC Bank, and to acquire all the shares of the State Mortgage and Investment Bank for the People’s Bank and to continue operations as a subsidiary bank of the People’s Bank, with the objective of ensuring the stability of the entire banking
sector and protecting the requirements of the depositors.

The Bank of Ceylon has identified the necessity of strengthening its digitalization capabilities in order to respond to changing customer demands and maintain the competitiveness of the banking sector.

Therefore, it has been planned to establish an Information Technology Institute affiliated with the bank that comprises IT
professionals to support the optimization of IT operations of the Bank of Ceylon and provide information and communication technology solutions and services that facilitate digital transformations.

Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as the Minister of Finance, Planning, and Economic Development, for the BOC Management and Support Services (Pvt) Ltd, which was established in 1992 to meet the manpower requirements of the Bank of Ceylon and seized operations in 2007, to be reestablished under the name of BOC IT Solutions (Pvt) Ltd, as a fully associated institute of the Bank of Ceylon.

The Joint Apparel Association Forum (JAAF) has welcomed the Government’s 2026 Budget, recognizing its emphasis on export-led growth, investment facilitation, and continued macroeconomic stability. The industry body commended the clear direction towards strengthening Sri Lanka’s external sector and building investor confidence, while also urging consistent implementation of reforms to sustain momentum.

The apparel industry Sri Lanka’s largest industrial export earner viewed the renewed focus on digitalization, and trade facilitation, enhanced capital allowances as positive steps that could enhance competitiveness and attract much-needed foreign investment.

Reform of the Department of Inland Revenue, the introduction of RAMIS 3.0 and the roll out of E invoicing have been among the asks of industry as we move into the post SVAT removal era.

However, JAAF reiterated that policy execution and continuity will be crucial in translating these commitments into tangible outcomes.

JAAF Secretary General Yohan Lawrence said “The 2026 Budget demonstrates encouraging intent to build a stronger export economy, but consistency and clarity in policy implementation are what ultimately drive confidence. The apparel sector continues to operate in a highly competitive global environment where even minor disruptions can affect thousands of jobs and livelihoods. We urge the authorities to maintain open dialogue with the private sector to ensure that reforms are implemented with minimal friction”.

JAAF further noted the importance of aligning policy with sustainability goals and market access requirements under key preferential schemes. Ensuring stable energy costs, facilitating renewable adoption, and enhancing logistics competitiveness were identified as critical enablers for continued export growth.

The association reiterated its readiness to collaborate with the Government to advance a unified national export strategy one that supports industries, SMEs, and the workforce driving Sri Lanka’s recovery.