By: Staff Writer

October 14, Colombo (LNW): Sri Lanka’s tourism industry continues to show impressive visitor growth but remains constrained by weak revenue performance, raising doubts about the sector’s ability to achieve its ambitious $5 billion year-end earnings target. Despite recording a record number of arrivals in September 2025, the industry’s income trajectory reveals that higher visitor numbers have not translated into proportional economic gains.

According to the latest Central Bank data, tourism earnings for September stood at $182.9 milliona marginal year-on-year increase but a steep 42% decline from August. This sharp month-on-month fall highlights the persistent mismatch between arrival figures and actual spending. The average daily expenditure per tourist remains around $171, far below expectations and well short of the pre-crisis benchmark levels needed to sustain the industry’s revival.

Comparatively, in September 2018, tourism generated $279.8 million—about $97 million more than the current figure—underscoring that the sector still has significant ground to cover to regain its former strength. January 2025 remains the best-performing month so far this year, when earnings peaked at $400.66 million, supported by strong early-season travel demand.

During the first nine months of 2025, Sri Lanka’s tourism receipts totaled approximately $2.47 billion, reflecting a modest 5% increase compared to the same period in 2024. However, this still represents a 31.2% shortfall from the 2018 benchmark of $3.25 billion, when the country enjoyed record-breaking annual earnings of $4.38 billion. On average, monthly earnings between January and September have hovered around $274 million, indicating limited revenue acceleration despite growing arrivals.

To reach the government’s $5 billion year-end target, Sri Lanka would need to earn over $2.52 billion in the final quarter an average of more than $840 million per month. Analysts caution that this is “challenging but not impossible,” noting that sustained high occupancy rates, increased per-tourist spending, and strong winter season arrivals would be essential to bridging the gap.

The gap between arrivals and revenue underscores deeper structural issues in Sri Lanka’s tourism model. Analysts attribute the weak revenue performance to the predominance of low-budget travelers, inadequate marketing to high-spending segments, limited diversification of experiences, and infrastructure bottlenecks in key destinations. Many visitors continue to choose short-stay or low-cost accommodation options, resulting in reduced overall expenditure per head.

The shortfall has macroeconomic implications. Tourism remains one of Sri Lanka’s top foreign exchange earners, and sluggish growth in sectoral income limits the country’s ability to strengthen reserves and reduce external pressure. A failure to meet the $5 billion target could also dampen fiscal expectations and affect investor confidence in the broader recovery narrative.

However, some optimism persists. Industry insiders point to upcoming winter bookings, renewed airline connectivity, and a stronger push into European and East Asian markets as potential drivers of a fourth-quarter rebound. If supported by targeted promotional campaigns, improved infrastructure, and enhanced digital marketing, the sector could regain some lost momentum.

Yet, without a significant boost in tourist spending and high-value offerings, Sri Lanka risks repeating the pattern of high arrivals but low returns a scenario that could undermine the long-term sustainability of one of the country’s most vital economic pillars.

By: Staff Writer

October 14, Colombo (LNW): Sri Lanka’s decision to host the Economic and Investment Summit 2025 in December could become a turning point in rebuilding investor confidence and restoring economic momentum after years of crisis.

Jointly organized by the Ministry of Foreign Affairs, Foreign Employment and Tourism and the Ceylon Chamber of Commerce (CCC), the event aims to position the country as a strategic investment hub and reconnect it with global capital markets.

At a hybrid briefing held on 10 October, Deputy Minister Arun Hemachandra called for renewed international business partnerships ahead of the summit, scheduled for 2–3 December 2025 in Colombo.

Addressing diplomatic missions and trade partners, he noted that the country’s “remarkable post-crisis recovery”supported by improved foreign reserves, macroeconomic stability, and reform momentum has created an environment conducive to foreign investment.

Ceylon Chamber Chairman Krishan Balendra described the event as a high-impact platform to showcase sectoral opportunities in tourism, energy, logistics, and technology.

He urged embassies to mobilize investor delegations and promote Sri Lanka as “Asia’s next emerging opportunity.” The Chamber’s Secretary General Buwanekabahu Perera added that the summit would serve as a confidence-building initiative linking policy reforms with tangible investor engagement.

The summit comes as Sri Lanka’s economy shows early signs of stabilization amid ongoing structural challenges.

According to the Central Bank of Sri Lanka (CBSL), inflation turned positive at 1.5% in September 2025, after months of deflation, while the economy is projected to grow by around 4.5% this year. Growth is being driven by a rebound in tourism, higher remittance inflows, and gradual recovery in exports.

Official worker remittances rose 20% year-on-year during the first nine months of 2025 to reach US$5.8 billion, while gross official reserves increased to over US$5 billion, providing a modest cushion for external payments. The rupee has remained relatively stable, supported by improved confidence following progress in foreign debt restructuring and fiscal discipline efforts.

Yet significant risks remain. Fiscal deficits are still estimated above 5% of GDP, while total public debt—though restructured remains over 100% of GDP. Private investment remains subdued, reflecting lingering policy uncertainty, slow implementation of capital projects, and limited investor assurance.

The government’s reform program has gained external validation following the IMF’s staff-level agreement in October 2025, unlocking US$347 million under the Extended Fund Facility (EFF). The IMF commended the authorities for progress in revenue reforms, energy pricing, and governance, but emphasized that sustained commitment is essential to maintain macroeconomic stability and restore investor trust.

This continued engagement with the IMF, together with gradual improvements in fiscal management, provides the backdrop for the December summit. It signals to potential investors that Sri Lanka is serious about policy continuity and transparency—key preconditions for attracting long-term capital.

For the Economic and Investment Summit to have real impact, it must move beyond symbolic dialogue and deliver actionable investment outcomes. Investors will look for clear project pipelines, transparent regulatory frameworks, and credible legal protections. The Ministry and CCC are coordinating with Sri Lankan missions abroad to ensure strong international participation and targeted business matchmaking.

If effectively executed, the summit could convert macroeconomic stabilization into tangible growth, demonstrating that Sri Lanka is not merely recovering but repositioning itself as a credible, reform-driven economy in South Asia.

The coming months will determine whether the December summit becomes another policy showcase or a genuine catalyst for investment-led recovery and sustainable growth.

By: Staff Writer

October 14, Colombo (LNW): Hayleys PLC has once more cemented its status as Sri Lanka’s leading listed corporation, reclaiming the top position in the 32nd edition of the LMD 100 rankings — the 10th time since the list’s inception in 1995. This recognition underscores Hayleys’ deep-rooted stature as an economic pillar, exemplifying resilience, innovation, and forward-looking value creation.

In the 2024/25 financial year, Hayleys delivered a landmark performance. The Group’s consolidated revenue reached Rs. 492.2 billion, marking a 13% increase year-on-year and representing the highest turnover in its 148-year history. Profit Before Tax climbed to Rs. 35.4 billion (a 40% increase), while Profit After Tax surged to Rs. 22.5 billion, up 52% over the prior year.

A substantial export income of US$685 million accounted for 53% of total Group revenue, reinforcing Hayleys’ role as a major contributor to Sri Lanka’s foreign exchange earnings. Beyond its financial feats, the Group remains one of the country’s largest private-sector employers, with a workforce of approximately 38,000, and supports over 27,000 indirect livelihoods across its value chains. In 2024/25 alone, Hayleys generated Rs. 152 billion in cumulative economic value through payments to government, employees, lenders, and nearly 13,000 shareholders.

Hayleys’ diversified operations span 16 industry verticals and over 20 countries. The company holds a commanding global position in key export commodities: it supplies nearly 5% of global demand for household and industrial rubber gloves (both supported and unsupported), and commands 16% of the global market in coconut shell–based activated carbon. Within Sri Lanka, it is the largest manufacturer and exporter of fabric, aluminum extrusion profiles, processed fruits and vegetables, hybrid flower seeds, and tissue culture plants.

The Group’s leadership attributes the success to its human capital and collaborative models. The Chairman & CEO remarked that achieving the top spot in LMD 100 for the tenth time speaks not only to financial strength, but also to the dedication of employees across Sri Lanka and abroad, as well as the many thousands of small-scale partners in its value chains. He emphasized that such recognition belongs to the entire ecosystem driving Hayleys’ progress in innovation, diversification, digital transformation, and ESG integration.

The firm’s institutional priorities remain anchored in an inclusive mission: to earn for the nation, empower communities, and generate enduring value for all stakeholders. With macroeconomic signals in Sri Lanka showing tentative stabilization, Hayleys says it remains confident in future prospects and will continue investing in progress that strengthens both the nation and its own growth trajectory.

Hayleys has long been a champion of inclusive business. It links rural smallholder farmers to global markets through training, fair-buyback systems, and sustainability initiatives. Programs like ‘First Light’ (for rubber smallholders) and ‘Harith Angara’ (for coconut-based charcoal suppliers) embed fairness, security, and sustainability into its value chains. These efforts are internationally recognized for social impact and aim to ensure that export-driven growth also strengthens livelihoods widely across Sri Lanka.

In terms of financial stewardship, Hayleys has maintained its national long-term credit rating of ‘AAA (lka)’, reaffirmed by Fitch Ratings in March 2025 a testament to disciplined governance and a robust balance sheet. On the sustainability front, 74% of the Group’s energy consumption now comes from renewable sources, supporting a 14% reduction in GHG emission intensity (Scope 1 & 2) over the past year.

Through robust financial performance, inclusive business models, and strong governance, Hayleys continues to set the benchmark for Sri Lanka’s corporate sector a beacon of stability and responsible growth in challenging times.

By: Staff Writer

October 14, Colombo (LNW): Sri Lanka’s precipitous slide in the 2025 Global Fraud Index marks a moment of reckoning for its financial and digital governance systems. According to the latest report by Sumsub, in partnership with Statista and the Digital Assets Association (DAA) Singapore, Sri Lanka now ranks 103rd out of 112 countries, placing it among the top five Asia-Pacific states most exposed to fraud risk.

This represents a sharp drop from its 94th position in the previous edition, highlighting a significant deterioration in the nation’s fraud resilience. Only Bangladesh, India, Indonesia, and Pakistan rank lower in the region, underscoring the extent of Sri Lanka’s vulnerability in fraud prevention and institutional oversight.

The Global Fraud Index goes beyond counting fraud incidents. It evaluates each country based on four key dimensions: fraud activity, resource accessibility, government intervention, and economic health.

Sri Lanka’s poor showing suggests weaknesses in at least two of these areas government intervention and economic health where regulatory frameworks, enforcement capacity, and institutional responsiveness appear to have fallen behind the rapid pace of digital transformation.

The report warns that markets undergoing swift digital adoption are particularly exposed when governance mechanisms and fraud prevention systems lag. Asia-Pacific as a region itself has fallen from third to fourth place globally in fraud protection, revealing that even relatively developed economies are struggling to keep pace with emerging threats.

Sri Lanka’s deteriorating position in this index carries serious implications for its economy and reputation. Investor confidence, already fragile, may weaken further as global capital tends to shy away from markets with weak governance and high fraud exposure.

Such a reputation can translate into higher risk premiums for borrowing, reduced appetite for foreign direct investment, and slower inflows into critical sectors like digital finance and technology.

Businesses operating within the country may also face increased compliance and operational costs, as they are compelled to invest more in cybersecurity systems, due diligence, and fraud insurance. For the financial sector, rising exposure to fraud and related risks could lead to higher non-performing assets, increased write-offs, and an erosion of public confidence in digital financial platforms.

The ranking also places new pressure on policymakers to strengthen anti-fraud measures through legislative reform, institutional upgrades, and public-private collaboration.

Without clear deterrents and efficient enforcement mechanisms, fraud risk will continue to undermine Sri Lanka’s efforts to position itself as a credible investment and financial hub. Enhanced coordination between regulatory authorities, banks, fintechs, and technology providers is crucial to building a real-time defense network against evolving threats.

Recovering from this setback will require a multi-layered approach. The government must modernize its fraud detection and investigative systems through advanced technologies such as artificial intelligence and machine learning, which can identify suspicious activities at scale and speed. Strengthening transparency, accountability, and whistleblower protections will also be key to rebuilding trust.

Beyond enforcement, the health of the broader economy remains integral to long-term improvement stable macroeconomic conditions and reduced corruption tend to limit both the motivation and opportunity for fraudulent activity.

Sri Lanka’s decline in the Global Fraud Index is a warning sign that governance, regulation, and technology must evolve together. The fall is not irreversible, but reversing it will demand sustained political will, institutional integrity, and private-sector engagement. If the country acts decisively now, the setback could serve as a catalyst for reform and modernization, restoring confidence in its financial systems and ensuring resilience in an increasingly digital and interconnected world.

DailyFT : Major Union Bank shareholder, CG Corp Global Chairman Dr. Binod K. Chaudhary (second from left), who is also a leading investor in several tourism-related ventures, met with Foreign Affairs and Tourism Minister Vijitha Herath to discuss potential new tourism investments and other related investments in Sri Lanka. He was accompanied by (from left): CG Corp Global Managing Director and Union Bank Deputy Chairman Nirvana Chaudhary and Union Bank Chairman and Employers’ Federation of Ceylon Chairman Dinesh Weerakkody.

October 14, Colombo (LNW): The recent and dramatic surge in the share price of Diesel and Motor Engineering PLC (DIMO) on the Colombo Stock Exchange has sparked intense debate among market participants and financial observers.

While a significant government procurement process for buses appears to be driving this increase, growing concerns suggest the possibility of underlying financial misconduct.

DIMO’s share price, which stood at approximately Rs. 1,400 only a few weeks ago, has now surpassed Rs. 2,400 — an all-time high for the company.

At the heart of this market frenzy is a government tender for the supply of low-floor buses, scheduled to be opened on October 17. The market widely anticipates that DIMO is the frontrunner to secure this multi-billion-rupee contract. Many investors are betting that winning such a substantial project would greatly enhance the company’s future earnings and profitability.

However, the legitimacy of this sharp price escalation has come under scrutiny. Several industry competitors are reportedly preparing to formally challenge the tender process.


Serious Allegations Levelling

They allege that the tender’s technical specifications have been tailored to align exclusively with the models supplied by DIMO, effectively excluding other qualified bidders. According to these critics, this represents a serious breach of competitive fairness and raises the possibility of collusion or procedural bias.

In parallel with these accusations, there is increasing suspicion that the market may be experiencing manipulation by parties with advance, non-public knowledge of the tender’s likely outcome. The implication is that individuals within government circles, DIMO, or associated entities might be engaging in insider trading — acquiring shares ahead of the official tender announcement in order to benefit financially from confidential information.

Under Sri Lankan law, such behaviour constitutes a grave financial offence. Insider trading compromises the integrity of the market, undermines investor trust, and violates the principles of transparency and fairness.

The Securities and Exchange Commission of Sri Lanka (SEC), together with the Colombo Stock Exchange, is anticipated to launch a formal investigation into the unusual trading activity and share price volatility.

Meanwhile, two opposition political figures are reportedly gathering information to publicly address the matter, and have sought the input of several automotive industry specialists, confirmed knowledgeable sources.