Business
‘Organised defaulters’ may make bank loans harder for genuine businesses
By Sanath Nanayakkare
Officials of the Central Bank have to grapple with ‘growth versus inflation’ dynamics to determine Sri Lanka’s economic future in another challenging New Year which has just begun. In addition to that they have found another unenviable task in encountering vociferous opponents of the banking system’s parate execution which is apparently being enforced as a last resort.
This was evident during the Q& A session the media had with Central Bank Governor Dr. Nandalal Weerasinghe on Friday where the Bank released its first-ever Financial Stability Review after gaining independence from Sri Lanka’s elected officials.
“A handful of organized loan defaulters are engaged in a vociferous campaign these days to avoid repaying loans they have taken from the banking system. But the Central Bank has a duty to recover the depositors’ money which has been lent to them, or else, the banks may become reluctant to loan money to even good borrowers in the future”, Dr. Weerasinghe warned.
“The Central Bank’s view is that parate execution is more important and essential for the protection of depositors’ money than for the stability of the banking system. The banking system distributes deposit funds of the general public among businesses as loans to stimulate the economy. However, when one borrows money from that deposit base and not repay it, the depositor’s money is at risk,” he said.
The Governor pointed out that the entire banking system has a deposit base of Rs. 16 trillion and depositors’ money account for 81% of the banking system’s liabilities.
“Bank shareholders have only a stake of 7% in this deposit base. So if any borrowers say that the money they have borrowed can’t be repaid or shouldn’t be recovered under parate execution, it is an unjustifiable claim. Now we hear the voices of an organized group that have the capacity to afford formal media events and say their defaulted loans shouldn’t be recovered under parate execution. This is akin to telling the depositors that ‘we have borrowed your money but we can’t pay it back.” If the depositors agree to that, it’s justifiable.
But the depositors won’t agree to that. The depositors are a silent majority community and their voices are not heard. Parate execution is enforced only when borrowers default on their loans; it is not enforced on those who make suitable arrangements to repay their loans. When the banks can’t recoup its losses under parate execution; they would be reluctant to give loans in the future even if one provides a property as collateral for repayment. So, the Central Bank has a responsibility to recover the money that belongs to the general public. If anyone is trying to disrupt the process, it’s a violation of depositors’ rights,” he said.
The governor pointed out that mainly short term deposits are used in giving long term loans and in the past 11 months, parate execution has been enforced on 557 persons recovering Rs. 38 billion.
“At a glance, it appears to be a big sum of money. But that is only 0.4% of the total bank loan portfolio. At present Stage-3 impaired loans stand at 13% which is a sum of Rs.1.4 trillion. Out of Rs. 1.4 trillion worth impaired loans, Rs. 38 billion came from parate executions. This means only 2.7% has been recovered under parate executions. If the banking system finds it unable to keep the enforcement of parate execution in effect, it will be a great injustice to the depositors because their money is borrowed and not repaid. Also, it will be an injustice to potential genuine borrowers because banks will be reluctant to give them money on credit.”
“These days you hear the voice of defaulters who make statements against parate execution at media events they have organized. And you will only see the depositors come to the picture when they find their savings are used in messy transactions. ETI, Golden Key and The Finance are good examples for this where depositors finally grouped up to make their collective voice heard. So, if the savings of millions of innocent people are misapplied by a handful of people and if they band together to prevent parate execution from being enforced, I think it would be great injustice.”
“The economic crisis brought its consequences without sparing anyone; not only borrowers, depositors were affected too. When inflation was 70%, depositors got a maximum interest rate of about 25%. That is how borrowers had to pay 30% interest rate. The Central Bank has issued 8 circulars with effect to giving crisis-hit businesses necessary moratoriums, relief measures, spreading out repayments, SME loans from ADB etc. And if the borrowers still have any grievances against their respective banks, there is a separate unit at the Central Bank to discuss such issues and see if a particular bank is deviating from the given norms.”
“But if it is identified that someone is shirking repayments, it is our duty to recover that money on behalf of the depositors and taxpayers because in the event of a crisis in the banking system, it will need to be borne by taxpayers and depositors,” he said.
The Governor went on to defend the banks making a decent profit through the activity of deposit taking, deposit interest payments and lending money at market rates throughout a financial year while robustly supporting the economy.
“When a bank makes profits, it has more capital to give as loans. That is why Rs. 450 bn has been allocated by the Budget from taxpayers’ money to strengthen the capital position of the state banks”, he pointed out.
The Governor urged sections of the media to not only highlight the story of the loan defaulters but also to train their cameras at the depositors and taxpayers.
“Are taxpayers willing to pay more taxes to give relief to a handful of loan defaulters or are depositors willing to sacrifice their funds to give relief to loan defaulters? That is the fundamental question we have before us and the general public needs to be made aware of it,” the Governor said.
Business
SLAF, Aviyana Ceylon partner to elevate high-end sports tourism with Eagles’ Monsoon Cup 2026
Aviyana Ceylon, Sri Lanka’s upcoming ultra-luxury seven-star hospitality project, has stepped decisively into the country’s high-end sports tourism space by coming on board as the principal sponsor of the prestigious Eagles’ Monsoon Cup Golf Tournament 2026, in partnership with the Sri Lanka Air Force (SLAF).
The international-standard golf tournament is scheduled to be held on January 11, 2026, and is expected to attract diplomats, corporate leaders, high-net-worth individuals and overseas golfers, reinforcing Sri Lanka’s positioning as an emerging premium leisure and sporting destination.
Under the patronage of Aviyana Ceylon chairman, Dr. Thisara Hewawasam, the company has committed a Rs. 2.5 million sponsorship, marking one of the most significant private-sector investments in elite golf events in recent years.
The sponsorship was formalised at a ceremonial cheque handover held at the Sri Lanka Air Force Headquarters, where Dr. Hewawasam officially handed over the cheque to Commander of the Air Force, Air Marshal Bandu Edirisinghe.
“Our decision to support the Eagles’ Monsoon Cup goes beyond sport. It is a strategic investment in positioning Sri Lanka as a global luxury tourism and lifestyle destination, Dr. Hewawasam said.
“International sporting events with strong networking potential play a critical role in shaping perceptions, attracting premium travelers and enhancing the country’s brand equity. Aviyana Ceylon is committed to supporting platforms that elevate Sri Lanka’s global standing, he added.
Senior SLAF officials, including chairman, Eagles’ Golf Links, Air Commodore Erandika Gunawardhana, secretary of the Air Force Sports Council and Director Media, Group Captain Eranda Geeganage, Secretary of Eagles’ Golf Links, Group Captain Asanka Ratnayake and SLAF Golf Secretary, Wing Commander R.A.S.T.A. Fernando, along with Aviyana Ceylon representatives and invited guests were present at the event.
Air Marshal Bandu Edirisinghe welcomed the partnership, noting that collaboration between the military and private sector is vital in developing sports diplomacy and tourism-led economic activity.
“Eagles’ Monsoon Cup has evolved into a premier sporting event that brings together global and local stakeholders. The support extended by Aviyana Ceylon strengthens our ability to host events of international calibre and contributes meaningfully to sports tourism and national image-building, the Air Force Commander said.
Beyond the golf tournament, the partnership opens the door to new experiential tourism initiatives, including a proposed collaboration to offer luxury helicopter tours for Aviyana Ceylon’s clientele, operated in coordination with the Sri Lanka Air Force.
According to Dr. Hewawasam, the concept aims to provide discerning travelers with exclusive aerial experiences showcasing Sri Lanka’s landscapes, coastlines and heritage.
“Luxury heli-tours represent a new dimension in experiential tourism. They allow us to present Sri Lanka’s natural beauty from a unique vantage point, appealing to high-value travelers seeking privacy, exclusivity and unforgettable experiences, he said.
Industry observers note that such initiatives align with global trends where luxury hospitality brands integrate sports, aviation and curated experiences to differentiate destinations and increase average tourist spend.
The Eagles’ Monsoon Cup is widely regarded as one of Sri Lanka’s most elite sporting events, functioning not only as a golf tournament but also as a high-level networking platform linking diplomacy, business and leisure.
By Ifham Nizam
Business
‘Tea industry largely spared cyclone damage’
Reports received by us from tea brokers, the Colombo Tea Traders’ Association (CTTA) and other sources indicated that, by and large, the local tea sector has been spared by the recent weather havoc.
The CTTA in their recent communications said that although Cyclone Ditwah affected parts of Sri Lanka, production, sales, and exports of tea continued without interruption. Clearly, the report said, the well established and highly coordinated industry network was fully geared to confront these issues. Production and sales continued with least disruption . While some tea growing areas in Uva, and the Central Province experienced some impact no loss in manufacturing capacity was reported.
Damage was largely confined to specific roads, resulting in temporary disruptions to transportation. Some key routes connecting plantations to the city have now been reopened and transport services are resuming normal operations. Harvesting operations are gradually returning to normal with access roads being reopened and temporary roads have been constructed to facilitate transport of green leaf to manufacturing locations.
The tea small holders we met said, although their production routine was affected, quick return to normalcy was ensured thanks to the established Tea Small Holders’ Association whose action ensured speedy return to normalcy. They reiterated production was near normal; and the dismal situation was now in a controlled position. They assured that such losses were minimal and could be recouped with minimum delay.
The CTTA further said the majority of plantations and small holder lands in the South of the island were spared cyclone damage. Harvesting, manufacturing and transportation activities are continuing as usual.
Trading activities at the Colombo Tea Auctions continue to be held although with a revised calendar. The tea auction previously set for the 1st week December has been rescheduled for the last week December. This adjustment ensures uninterrupted financial flows to the producers , including small holders, maintaining the momentum of the industry.
Forbes and Walker Tea Brokers reported a national tea sale average for November of Rs. 1137.22 ( USD3.89) which shows an increase of Rs.61.17 and USD 0.02 YOY. The total National Sale Average for the year 2025 ( to date) was recorded at Rs. 1,164.97( USD 3.88). a decline of Rs . 63.49 ( USD 0.17) against the corresponding year’s average of Rs. 1228.46 (USD4.05). The report further said all elevations recorded negative variances during the period January to November 2025 in comparison to the cumulative corresponding year of 2024 in both LKR and USD terms.
By Steve A. Morrell
Business
Elephant House Ice Cream marks historic launch in Australia
Ceylon Cold Stores PLC (CCS), a subsidiary of John Keells Holdings PLC, has launched its iconic Elephant House Ice Cream in Australia, marking a bold step in the brand’s global expansion. The official unveiling took place on 4th December 2025 at the Novotel Melbourne Glen Waverley, where industry leaders, local distributors, and strategic partners gathered to celebrate the occasion. The launch was further honoured by the presence of Ms. Pradeepa Seram, Consul General Designate of Sri Lanka, and Ms. Cassandra Fernando, Member of the Australian Parliament, reflecting the deep and growing connections between Sri Lanka and Australia.
Elephant House is one of the highest-penetrated Sri Lankan brands among Sri Lankan communities living overseas, with a presence in 16 countries, including the Maldives, Australia, and the United Kingdom, among others.
In a significant milestone for the company, Elephant House Ice Cream is now manufactured locally in Melbourne to support wider availability in the ethnic market in Australia. The range currently available includes Vanilla, Karutha Kolomban, and Fruit and Nut in 500ml packs. This marks the first time in CCS’s 150-year legacy that Elephant House Ice Cream has been produced outside Sri Lanka, signalling a new chapter in the company’s international growth journey in collaboration with Millennium Imports Pty Ltd, it’s one of the franchise partners for Australia.
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