The Nippon Foundation Chair Yohei Sasakawa paid a courtesy call on Prime Minister Dr. Harini Amarasuriya at Temple Trees on Thursday (6), where discussions focused on strengthening cooperation in education, accessibility, and social inclusion.

Prime Minister Amarasuriya expressed her appreciation for Mr. Sasakawa’s second visit to Sri Lanka and commended The Nippon Foundation’s longstanding commitment to supporting vulnerable communities.

Sasakawa briefed the Prime Minister on the outcomes of the recent Leprosy Conference, attended by President Anura Kumara Dissanayake, and outlined the Foundation’s ongoing projects in Sri Lanka—particularly those aimed at empowering persons with disabilities and supporting students with special needs.

Highlighting the work of the Sri Lankan School of Prosthetics and Orthotics, Sasakawa proposed upgrading the institution to university level with Government collaboration. The Prime Minister responded positively and instructed the Ministry of Education to assess the proposal’s feasibility.

Dr. Amarasuriya also praised the ‘100 Schools Project’ implemented by The Nippon Foundation in the Northern Province, reaffirming her Government’s dedication to advancing inclusive education and social empowerment. She further acknowledged the resource constraints faced by some initiatives and conveyed gratitude for Japan’s continued assistance in addressing them.

Japan’s Ambassador to Sri Lanka, Akio Isomata, reaffirmed Japan’s commitment to enhancing bilateral cooperation, especially in areas promoting social welfare, inclusivity, and education.

Both parties expressed their shared commitment to deepening collaboration among Sri Lanka, Japan, and The Nippon Foundation to advance inclusive development and strengthen people-to-people ties.

The meeting was attended by Yohei Sasakawa, Ambassador Akio Isomata, Second Secretary Ryo Takaoka, and Shota Nakayasu, Secretary to The Nippon Foundation’s Chairman.

Representing the Sri Lankan side were Prime Minister’s Secretary Pradeep Saputhanthri, Additional Secretary Sagarika Bogahawatta, Director General of the East Asia and Oceania Division of the Foreign Affairs Ministry Savitri Panabokke, and Assistant Director Gayanga Dias.

In a strategic move to strengthen its global presence, JAT Holdings PLC this week announced the acquisition of Mirotone (NZ) Ltd., a renowned New Zealand-based coatings brand, for over Rs. 800 million (AUD 4 million). The landmark deal marks a major milestone in JAT’s transformation into a Sri Lankan multinational with expanding global reach.

Founded in 1935, Mirotone is the market leader in industrial wood coatings across New Zealand. The acquisition includes AUD 2.5 million for full ownership and AUD 1.5 million earmarked for working capital, modernisation of manufacturing operations, and the relaunch of Mirotone in the Australian market.

Speaking at a capital market forum attended by New Zealand High Commissioner David Pine, JAT Founder and Managing Director Aelian Gunawardene hailed the acquisition as a “defining chapter” in the company’s journey. “Mirotone gives JAT not only a powerful brand but a passport to the world with immediate access to Australia and future markets in Europe and the Americas,” he said.

JAT CEO Nishal Ferdinando noted that the move positions JAT for expansion beyond its existing international footprint  which includes Bangladesh, the Maldives, and Kenya  to Australia, India, Southeast Asia, Europe, and North and South America.

The acquisition is expected to deliver substantial financial growth. JAT projects group revenue to double by 106% and profit to rise 71% by the 2027/28 financial year, driven by international operations and an increased share of revenue from its own brands. Currently, international revenue accounts for 30% of the total, but JAT aims to raise this to 50%, with its own brands contributing 70% of total income.

For Mirotone specifically, turnover is projected to surge from NZ$ 8 million to NZ$ 23 million by 2027/28. Growth will be driven by the Australian relaunch, product innovation, expansion into architectural coatings, and exports to Pacific markets like Fiji. Profit margins are also expected to rise sharply with gross profit forecast to grow 59% through centralised manufacturing, backward integration via JAT’s Sri Lankan acrylic binder plant and Bangladesh resin plant, and a stronger R&D base in Sri Lanka.

With a 58% market share in Sri Lanka’s retail paint segment, JAT has already established itself as a regional leader known for high-quality, water-based coatings. The acquisition of Mirotone a 90-year-old brand with a loyal industrial customer base and proven expertise in developed markets is set to accelerate JAT’s transformation into a globally competitive coatings powerhouse.

Sri Lanka’s 2026 Budget, presented in Parliament today, represents a pivotal moment in the country’s post-crisis recovery, a statement of intent that combines fiscal restraint with cautious optimism. The government has pledged to sustain economic stability under the IMF programme, while promising to turn that stability into tangible growth. Yet, the real test lies in whether the ambitious revenue goals can be met without overburdening citizens or stalling the fragile recovery.

Revenue Ambitions Take Centre Stage

The government has set a revenue-to-GDP target above 15%, up from about 13.7% in 2024, signalling a renewed push to strengthen state finances. The Budget also maintains a primary surplus of 2.3% of GDP and aims to cut the overall deficit below 5% by 2028.

Rather than introducing new or higher taxes, the 2026 Budget focuses on expanding the tax base, tightening compliance, and phasing out costly tax exemptions. Officials argue that this approach will make the system fairer and more efficient, avoiding additional pressure on already strained households.

This direction is consistent with the IMF’s call for “strong revenue measures to support macroeconomic stability,” while ensuring that economic growth and fiscal prudence go hand in hand. However, economists caution that achieving these goals will require strong administrative reform and political will in areas where Sri Lanka has struggled in the past.

 Dependence on Compliance and Private Growth

The budget strategy assumes that improved tax collection and renewed investor confidence will deliver the expected revenue growth. With public investment capped at around 4% of GDP, the government is relying heavily on the private sector and foreign direct investment (FDI) to drive expansion and job creation.

This model, however, carries risks. The narrow tax base, dominated by indirect taxes such as VAT and import duties, remains a weak foundation. If consumption slows or imports decline, state revenues could fall short. Moreover, while the Budget promises a friendlier investment climate, the effectiveness of those measures will depend on how quickly bureaucratic bottlenecks and corruption are tackled.

Expert Reactions

Dr. W. A. Wijewardena, former Deputy Governor of the Central Bank, welcomed the government’s commitment to continue the IMF-backed reform programme and its reliance on private and foreign investment to fuel the economy.

“AKD showed remarkable confidence about his government’s ability to continue the current policy package and deliver prosperity as promised in his manifesto,” he observed. “His shift toward private-sector-led growth is a positive development and a step in the correct direction.”

He noted that the country’s economic stability depends not only on fiscal targets but also on maintaining rule of law and investor confidence  key elements highlighted in the Budget.

Professor Priyanga Dunusinghe of the University of Colombo said the government deserves credit for managing to gradually reduce the budget deficit despite limited external borrowing options. “There is no evidence of excessive borrowing under this government. On the contrary, the deficit has been steadily declining,” he said, adding that domestic borrowing remains the main source of financing due to restricted access to global markets.

Critical Assessment

The 2026 Budget strikes a careful balance between stability and ambition. It is disciplined rather than populist, designed to reassure creditors and investors that Sri Lanka remains committed to reform. The emphasis on compliance, digitalisation, and improved governance over new taxes is sound in principle, but execution will determine success.

Colombo, November 5 – The Embassy of France in Colombo has announced that two French cable ships will be constructed in Sri Lanka, marking another milestone in bilateral cooperation and the country’s growing reputation in advanced shipbuilding.

The vessels will be built by Colombo Dockyard PLC, selected by Orange Marine, a French company and a global leader in submarine cable installation and maintenance. The project aims to renew and expand Orange Marine’s fleet capacity, strengthening global digital connectivity infrastructure.

This follows the successful construction of the cable ship Sophie Germain in 2023 by Colombo Dockyard, which is currently in active operation.

The Embassy noted that this renewed collaboration underscores Sri Lanka’s rising prominence in the global maritime engineering sector, while reinforcing the strategic maritime partnership between France and Sri Lanka.

Officials from both sides expressed confidence that the initiative will not only enhance technological cooperation but also create new opportunities for Sri Lanka’s shipbuilding industry in the international arena.

Colombo, November 7 – President Anura Kumara Dissanayake announced that the state administrative system has been severely weakened due to years of unfilled vacancies in the public service, emphasizing that revitalizing the public sector is a key priority of the 2026 Budget.

Presenting the Budget Proposals for 2026 in Parliament, the President revealed that a formal study conducted by a committee chaired by the Prime Minister had reviewed the country’s public service recruitment process and overall workforce management. Based on its findings, approval has been granted to recruit nearly 75,000 individualsthrough a transparent and merit-based procedure.

“These recruitments will focus on essential positions such as technical officers, law enforcement officers, and revenue officers, who are vital to maintaining the efficiency and continuity of key state services,” President Dissanayake said.

He also underscored that, going forward, all recruitments, promotions, and related administrative actions in the public sector will strictly adhere to prescribed examinations and service regulations, free from political influence — ensuring equal opportunities for all qualified candidates.

In addition to strengthening public service management, President Dissanayake announced a series of financial and welfare benefits for public servants, including:

• Restructuring of the housing and property loan scheme, increasing the maximum loan amount to Rs. 5 million.
  • Rs. 500 million will be allocated for these loans, with a 4% concessional interest rate for the first Rs. 3 million and a 2% rate for amounts between Rs. 3 million and Rs. 5 million.
• Revision of the Agrahara Insurance Scheme contribution to maintain its sustainability.
  • The minimum contribution of Rs. 125 will rise by Rs. 75.
  • Monthly contributions of Rs. 300 and Rs. 600 will be increased by Rs. 150 each.
• Increase of the interest-free festival advance for government employees from Rs. 10,000 to Rs. 15,000.
• Enhancement of the distress loan advance from Rs. 250,000 to Rs. 400,000, at an interest rate of 4.2%.

The President noted that these reforms are intended to both restore efficiency in public administration and improve the living standards of state employees, ensuring a more motivated and equitable public service.

Showers or thundershowers will occur at most parts of the island after 1.00 p.m. Fairly heavy falls above 75 mm are likely at some places in Uva, Southern, Sabaragamuwa and Central provinces.
Showers or thundershowers may occur in Western, Sabaragamuwa, Central, North-western and Southern provinces and in Ampara district in the morning too.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Pradeep Nilanga Dela has once again been elected as the Diyawadana Nilame of the historic Temple of the Sacred Tooth Relic in Kandy.

The appointment was made this afternoon (07) during the election held at the Kandy Buddhist Council.

He secured 195 votes, earning his third consecutive term as the Diyawadana Nilame. With this victory, he will serve another 10-year tenure in this prestigious position.