Business
US trade war poses risks to Sri Lanka’s creditworthiness, warns Fitch
Meanwhile, tensions between the world’s two largest economies remain high
By Sanath Nanayakkare
Sri Lanka’s already vulnerable financial position could be further threatened by the ongoing US trade war, according to a recent analysis by Fitch Ratings.
The global ratings agency highlights that Sri Lanka, currently rated CCC+, is particularly susceptible to negative impacts if its export earnings are hit by the escalating tariffs.
Fitch Ratings, Hong Kong, in a press release issued on April 15, 2025, warned that increasing US tariffs would weigh on the credit metrics of many sovereigns in the Asia-Pacific (APAC) region. The report emphasised that APAC’s high trade openness and reliance on US demand make it especially vulnerable to the fallout from the trade war.
While the 10% tariffs imposed by the US on most countries are slightly below Fitch’s earlier projections, the agency believes that Asian economic growth will slow as exports and export-oriented investments suffer from tariffs and increased uncertainty.
“This slowdown, coupled with weaker commodity prices and exchange rate adjustments, will affect APAC sovereigns to varying degrees. Several economies in the region, including China, Vietnam, Taiwan, Thailand, and Korea, rely heavily on manufacturing exports and investments, with the US serving as a major export market. These economies could face significant challenges as a result of the trade war,” it stated.
Fitch noted that government policy responses would be crucial in determining the ultimate impact on APAC sovereign ratings. While some higher-rated jurisdictions like China, Singapore, and Taiwan may have the fiscal space to implement stimulus measures, some others, including Sri Lanka, have limited headroom due to high debt levels and constrained fiscal consolidation since the pandemic and its own economic crisis.
The ratings agency also cautioned that the US dollar could appreciate against some APAC currencies, potentially increasing debt burdens for countries with a large share of foreign-currency debt. Furthermore, foreign-exchange reserves could shrink if authorities intervene to support their currencies, further straining economies with low external buffers like Sri Lanka.
Fitch concluded that countries with relatively low external buffers, such as Bangladesh and Sri Lanka, were particularly at risk if their export earnings were negatively impacted by the tariffs.
Meanwhile, tensions between the world’s two largest economies remain high.
After the White House website claimed that imports from China to the US would face tariffs of up to 245 percent, the Chinese Foreign Ministry warned yesterday that China would pay no attention to the US’s further tariff numbers game, and it would take ‘resolute countermeasures’ and ‘fight to the end’ if Washington persisted in substantially infringing on China’s rights and interests.
China Daily – the ruling Chinese Communist party’s English-language mouthpiece published a sharply worded editorial on April 15, rejecting U.S. President Trump’s repeated claims that the US had been ‘ripped off’ by China.
“The U.S. is not getting ripped off by anybody. It is taking a free ride on the globalisation train and is living beyond its means,” China Daily argued.
Business
Climate compliance pressure mounts on Lankan businesses
Lankan businesses are facing increasing pressure to strengthen climate governance, compliance, and risk management frameworks as climate-related disclosure requirements, investor expectations, and regulatory standards continue to evolve.
Against this backdrop, Genesis – the Dilmah Centre for a Sustainable Future will host a specialised post-summit technical workshop titled “Climate Action: A Strategic Executive Workshop on Climate Resilience and Business Continuity” on June 12, in Colombo.
The programme is designed as a continuation of discussions initiated at the Sri Lanka Climate Summit 2026 and will bring together sustainability managers, compliance officers, ESG professionals, risk specialists, and corporate decision-makers. It aims to translate climate commitments into practical business strategies.
The workshop will focus on implementation rather than advocacy, examining emerging disclosure frameworks, financing mechanisms, and regulatory pathways shaping corporate climate action in Sri Lanka.
Keynote speaker Dr. Lalanath de Silva, an internationally recognised environmental lawyer and governance expert, will address the evolving legal and compliance landscape influencing climate-related business decisions.
Technical sessions will cover IFRS S2 climate-related disclosures, climate risk governance, green finance opportunities, internal carbon pricing, and access to climate financing. Speakers will include climate risk specialist Rohan Cooray, Shiranee Yasaratne of Biodiversity Sri Lanka, and Suganthi Samarasinghe of UNDP Sri Lanka.
Organisers said climate readiness is increasingly becoming a business necessity rather than a sustainability option, with growing scrutiny from global markets and regulators.
Participation is free of charge, but prior registration is required due to limited seating for professionals in sustainability, governance, compliance, and risk management roles.
Business
SPAR Sri Lanka Opens New Outlet in Kurunegala
SPAR Sri Lanka has expanded its retail network with the opening of a new outlet in Kurunegala, marking another milestone in the supermarket chain’s growth across the country.
The new store, strategically located to serve the growing population of the North Western Province, offers a wide range of products, including fresh fruits and vegetables, premium meat products, bakery items, household essentials and both local and international brands.
The outlet also features several specialty sections, including a Coconut Corner, Wellness Corner and a dedicated area catering to pet care products.
Speaking at the opening, SPAR Sri Lanka Chief Executive Officer Kumar de Silva said the new outlet reflects the company’s commitment to delivering a “glocal” shopping experience by combining international retail standards with local customer preferences.
“Our Kurunegala outlet reflects our dedication to providing customers with the best range, superior quality and exceptional service under one roof,” he said.
The store also offers SPAR’s signature fresh food concepts, including in-store bakery products, ready-to-eat meals and freshly prepared juices aimed at meeting the needs of busy consumers.
The company said customers will benefit from a range of promotional offers, loyalty rewards, weekend deals and seasonal discounts.
SPAR Sri Lanka said the expansion would also contribute to local economic development through employment generation and support for local suppliers, further strengthening the country’s retail sector.
Pic and Text by SK Samaranayake
Business
Royal end title drought with dramatic shootout triumph
Royal College, Colombo, emerged unbeaten champions of the All-Island Under-20 Hockey Tournament after defeating defending champions St. Thomas’ College, Matale, in a nail-biting sudden-death penalty shootout at the Rajarata University Grounds in Mihintale last week.
The final ended in a 1-1 draw after Royal equalised five minutes from time to cancel out the Matale side’s earlier lead.
With the penalty shootout also ending in a 4-4 deadlock, the match proceeded to sudden death. The Reid Avenue outfit eventually prevailed in the second round of sudden-death penalties to clinch the title.
A brilliant save by goalkeeper Stefan Anthonipillai, who stretched to his right to deny a crucial attempt, and the decisive conversion by Rumal Jayasinghe helped Royal secure the Under-20 championship for the first time since the tournament’s inception in 2014.
Royal’s centre-forward Savain Karunasiri was one of the team’s standout performers throughout the tournament, scoring crucial goals, including strikes in both the semi-final and the final. Anthonipillai was equally impressive, guarding the goal superbly throughout the seven-match campaign.
Royal finished runners-up when the tournament was held in Matale last year.
The Colombo school produced a series of consistent performances despite having to play on an uneven grass surface that was not ideally suited to the fast-paced modern game.
Royal began their campaign with a 2-0 victory over Christ Church College, Matale, before defeating arch-rivals St. Thomas’ College, Mount Lavinia, 1-0. They then beat Kingswood College, Kandy, 2-0 and Maris Stella College, Negombo, 2-1 to top their group.
In the quarter-final, coach Damith Panditharatne’s side overcame fancied Dharmadutha College, Badulla, by 2-0.
Royal then edged out St. Joseph Vaz College, Wennappuwa, 1-0 in the semi-final, adopting a disciplined defensive approach against the aggressively attacking Puttalam outfit.
In the other semi-final, St. Thomas’ College, Matale defeated Trinity College, Kandy, 3-1. St. Joseph Vaz later beat Trinity 1-0 in the third-place playoff.
Panditharatne’s five-year development programme, with a strong emphasis on fitness, stamina and technical skills, played a key role in Royal’s success. The title marked Royal’s first national Under-20 tournament triumph since winning the National Schools Games in 2017.
A former national player, Air Force striker and Sri Lanka Police coach, Panditharatne has focused on addressing the weaknesses of individual players while building a cohesive unit. The former Christ Church College, Matale player has been coaching Royal since 2022 with the support of the Royal College Hockey Club (RCHC), comprising former Royal hockey players.
For his outstanding performances, Anthonipillai was adjudged the Best Goalkeeper of the Tournament. Royal College was also named the Most Disciplined Team of the Tournament.
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