By: Staff Writer

September 25, Colombo (LNW): SriLankan Airlines has announced a comprehensive five-year strategic plan aimed at restoring financial stability, strengthening operations, and recovering from recent fleet challenges, while setting the stage for long-term growth.

The national carrier said the roadmap focuses on debt restructuring, operational efficiency, sustainable practices, and the integration of new technology to deliver smoother passenger experiences.

The airline has pledged to reduce waste and improve efficiency across all operations. Measures include optimising fuel usage with advanced digital flight monitoring, further automating office systems to cut down on paper consumption, and introducing energy-saving practices and real-time monitoring at SriLankan Catering facilities.

Over the past year, the airline has taken steps to streamline costs, restructure debt, expand revenue streams, and enhance customer experience, while also investing in staff development and sustainability.

SriLankan has recorded progress in punctuality, with on-time performance rising to 74% this year from 69% in 2024. The improvement comes despite global engine shortages and spare parts constraints. Investments in fleet management software and in-house facilities for calibration, testing and inspections have helped speed up maintenance turnarounds, improve scheduling, and boost independence.

Two aircraft that were grounded due to engine shortages have already returned to service, while a third is expected back in early 2026. In June, the airline added a leased Airbus A330-200 wide-body aircraftits first wide-body addition in seven years supporting route expansion.

Route rationalisation, revised scheduling and enhanced digital sales channels have enabled revenue growth. Adjusted timings on routes to Bangalore, Kochi and Hyderabad aim to capture growing demand from the Indian leisure market. From July, the airline increased frequencies to Singapore, Kuala Lumpur and Bangkok with double daily services, while also adding four weekly flights to Dubai.

Dynamic capacity management deploying aircraft based on demand has also supported growth. In the first five months of the 2025/26 financial year, passenger revenue rose 10%, passenger numbers climbed 22%, and capacity expanded by 10%.

To strengthen its brand, SriLankan has rolled out several digital and onboard innovations. These include wireless inflight entertainment, the AI-powered chatbot ‘Yaana’ for personalised digital engagement, and smart airport self-service options. Passenger surveys have shown rising satisfaction levels following these upgrades.
The airline reiterated that safety of passengers and crew remains its top priority as it navigates the next phase of recovery. With its five-year plan, SriLankan aims to chart a path toward financial and operational resilience, while positioning itself competitively in the region’s aviation market

By: Staff Writer

September 25, Colombo (LNW): In a landmark move that will reshape Sri Lanka’s retail banking landscape, Nations Trust Bank PLC (NTB) yesterday announced it has entered into a binding Sale and Purchase Agreement with the Hong Kong and Shanghai Banking Corporation (HSBC) to acquire HSBC’s retail banking business in Sri Lanka. The deal, valued at Rs. 18 billion plus applicable taxes, marks one of the largest transactions in the sector in recent years.

The agreement, signed through HSBC’s local branch, covers its entire retail portfolio including HSBC Premier clients, credit cards, retail loans, and approximately 200,000 customer accounts. In addition, NTB will extend offers of employment to HSBC staff currently supporting the retail business, ensuring continuity and a smooth transition for clients.

The transaction, approved by NTB’s Board of Directors earlier this week, will be funded entirely through internally generated earnings, while keeping the bank’s regulatory ratios intact. Completion is expected in the first half of 2026, pending approval from the Central Bank of Sri Lanka and fulfillment of other conditions laid out in the agreement.

“This acquisition will reinforce NTB’s leadership in the premium retail banking space and reflect its continued commitment to delivering exceptional value to clients,” NTB said in a statement, noting that the deal strengthens its foothold among high-net-worth individuals and credit card users.

HSBC Sri Lanka has informed its retail customers that their existing accounts, deposits, loans, and card services will continue uninterrupted until the transaction is finalized. “During this period, we will work closely with NTB and the regulatory authorities to enable a smooth transition… there is nothing you need to do at this stage,” HSBC said in an email to its clients.

NTB enters this acquisition with a strong balance sheet. As of end-June 2025, the bank reported retained earnings of Rs. 62.5 billion and a deposit base exceeding Rs. 447 billion. Its largest shareholder remains John Keells Holdings, the blue-chip conglomerate, with a controlling 56.4% stake.

Industry analysts view the move as a strategic expansion for NTB, allowing it to capture HSBC’s premium retail clientele and bolster its market share in an increasingly competitive sector. For HSBC, the divestment reflects a broader global trend of streamlining operations and focusing on corporate and institutional banking in emerging markets.

While the acquisition still hinges on regulatory clearance, both banks have assured customers that services will remain stable and uninterrupted. NTB has pledged to provide further updates once the transfer process is formally completed.

If approved, the deal is expected to redefine the premium retail banking segment in Sri Lanka, bringing together NTB’s strong local footprint with HSBC’s well-established customer base.

By: Staff Writer

September 25, Colombo (LNW): At a time when global economies are increasingly looking seaward for sustainable growth, Sri Lanka is making a determined bid to position itself as a regional leader in the emerging “Blue Economy.”

Against this backdrop, the Export Development Board (EDB) yesterday announced that it will host the second edition of Voyage Sri Lanka South Asia’s premier marine summit on 16 October 2025 at the Kingsbury Hotel, Colombo.

This year’s summit, themed “Unveiling the Blue Economy Potential of Sri Lanka,” aims to bring together global leaders, policymakers, investors, and professionals to unlock the vast opportunities that lie within the country’s ocean resources. The event comes as Sri Lanka seeks to diversify exports and attract investments at a time of economic recovery and restructuring.

EDB Chairman Mangala Wijesinghe said Sri Lanka’s strategic geographic location at the heart of the Indian Ocean makes the marine economy a natural pillar for future growth. “The Blue Economy is no longer just a concept – it offers immense opportunities in trade, marine and offshore services, fisheries, tourism, and sustainable marine industries,” he said.

Two sectors have been identified as priority growth drivers: marine and offshore services (M&OS), and boat and shipbuilding. Together, they already provide a solid foundation but remain underexploited relative to Sri Lanka’s geographic advantages.

According to industry estimates, the M&OS sector generates an annual turnover of $300–400 million, anchored by Sri Lanka’s natural deep-water ports in Trincomalee, Hambantota, and Colombo.

Nearly 200–250 international vessels pass close to the island every day, offering opportunities in ship repair, offshore engineering, rig lay-up, bunkering, and support services. With strategic investment, Wijesinghe argued, Sri Lanka could emerge as a regional hub for servicing the global shipping industry.

Boat building and shipbuilding are also gaining international recognition. Sri Lanka currently has around 20–25 boat builders and a leading shipbuilding company producing state-of-the-art vessels for export. Buyers include markets in Norway, the Maldives, the Netherlands, and parts of Africa, covering everything from pleasure craft to coast guard patrol boats. Shipbuilding and repair are the largest contributors to export earnings in the sector, supported by a skilled local workforce and advanced technical capabilities.

The upcoming summit will provide a platform for international experts, investors, policymakers, and industry leaders to explore investment opportunities, while also emphasizing sustainability and innovation. Sessions will include keynote addresses, panel discussions, and business-to-business networking, aimed at forging partnerships and boosting exports.

Beyond the technical focus, the event underscores Sri Lanka’s intent to frame the marine economy as a key growth engine for the future. “We remain steadfast in our mission to unlock new export opportunities and attract investment in Sri Lanka’s marine sector. I call upon our industry partners, investors, and the global marine community to join us in harnessing the full potential of the blue economy,” Wijesinghe said.

With the global Blue Economy projected to generate trillions of dollars in value by 2030, Sri Lanka’s efforts through Voyage Sri Lanka 2025 mark an ambitious step to secure its share of the opportunity while reinforcing its role as a vital Indian Ocean hub.

By: Staff Writer

September 25, Colombo (LNW): Sri Lanka’s fragile economy has increasingly become dependent on foreign assistance, with grants and preferential trade schemes forming critical lifelines. The latest example came yesterday, when the Finance Ministry announced a €8 million ($9.4 million) grant from the European Union (EU) aimed at supporting biodiversity conservation and solid waste management.

Treasury Secretary Dr. Harshana Suriyapperuma, who signed the agreement with EU Ambassador Carmen Moreno, hailed the project as consistent with Sri Lanka’s sustainable development agenda. The project will focus on restoring degraded ecosystems, implementing conservation strategies, and modernising waste management areas long plagued by underfunding and policy neglect.

Ambassador Moreno noted that biodiversity is among Sri Lanka’s most valuable assets, adding that EU expertise, technology, and private-sector investment would back these initiatives. “Protection of biodiversity contributes to global health and the fight against climate change,” she said.

But experts caution that such grants, while welcome, are modest compared to Sri Lanka’s larger financial challenges. For instance, the United States provided over $42 million in grants to Sri Lanka in 2024, with allocations spanning renewable energy, agriculture, democratic governance, and humanitarian relief. These flows of aid, however, often come linked to broader policy agendas, raising questions about how much sovereignty Sri Lanka retains in shaping its development path.

Beyond grants, the EU wields another tool with far greater economic impact—the Generalised Scheme of Preferences Plus (GSP+), a preferential trade arrangement that allows duty-free access to more than 6,000 Sri Lankan products in European markets.

According to the Central Bank, Sri Lanka exported $3.6 billion worth of goods to the EU in 2024, making the bloc its second-largest export destination. Of this, the apparel sector accounted for over $2.5 billion, representing nearly 40% of total national export earnings.

The stakes are therefore high: if Sri Lanka loses GSP+ due to non-compliance with EU requirements—covering 27 international conventions on human rights, labour rights, environmental protection, and good governance exports could take a severe hit. Industry analysts warn that without duty-free access, Sri Lankan apparel could lose competitiveness against rivals like Bangladesh and Vietnam, potentially leading to tens of thousands of job losses, particularly among women in garment factories.

This review is particularly sensitive given the EU’s ongoing monitoring of governance and human rights concerns in Sri Lanka. A potential suspension of GSP+ would dwarf the benefits of the $9.4 million biodiversity grant, wiping out billions in export revenues.

The contrasting scale between modest grants and massive trade leverage underlines a deeper truth: aid and concessions rarely come without conditions. While the EU’s grant addresses vital environmental concerns, Sri Lanka’s long-term economic stability depends on its ability to safeguard GSP+ status while balancing domestic policy priorities with external expectations.

As the country struggles to rebuild from its debt and currency crises, its reliance on such international partnerships exposes both opportunity and vulnerability. The EU grant may help green the economy, but the looming GSP+ review could decide the fate of hundreds of thousands of livelihoods.