By: Staff Writer

January 14, Colombo (LNW): In a dazzling spotlight on Sri Lanka’s allure, Vogue has named the island’s south coast as the must-visit destination this winter, capturing the hearts of wanderers with its unspoiled beaches, vibrant wildlife, tranquil tea estates and immersive cultural experiences.

This achievement was significant following Sri Lanka’s tourism industry kick-off 2025 with nearly 70,944 arrivals in the first nine days of the year reflecting strong start

This surge reflects a growing momentum for the sector, boosted by an influx of Russian tourists who led the charge in early 2025. The latest data released by the Sri Lanka Tourism Development Authority (SLTDA) shows that daily arrivals have also improved during the same window last year – reflecting a noteworthy progress in footfall.

Through a vivid feature titled ‘Waves to Wildlife, Tea to Tranquility: Sri Lanka’s south coast is this winter’s hottest destination’ penned by Christine Chitnis, the international lifestyle magazine portrays the southern stretch as the ultimate haven for those seeking warmth, adventure and serenity during the colder months.

The feature published on 8 January, unfolds a sensory journey through Sri Lanka’s diverse landscapes and its enduring spirit of resilience. Chitnis, a renowned photographer and travel journalist explores the south coast’s myriad of natural offerings, where luxury and adventure harmoniously converge.

“Sri Lanka’s landscapes are vast and varied, welcoming and wild. This island nation of 22 million is a place where leopards slip like a whisper through the undergrowth, blue whales breach offshore, tea estates paint the hill region a lush green, and ancient Buddhist and Hindu temples whisper stories of centuries past.

In the coastal towns, surfers line the golden sand beaches and tuk-tuks zip along twisting roads, their horns blending with the rhythmic clink of fishmongers’ knives and the sizzle of hoppers frying in street stalls.

Plates heaped with rice and aromatic curries showcase the island’s culinary riches, while orange king coconuts are cracked open and offered as a sweet, refreshing balm to the humid heat,” she described.

By: Staff Writer

January 14, Colombo (LNW): Maintaining a stable and efficient payment system is essential for ensuring a robust financial system. To this end, the Central Bank of Sri Lanka has launched a comprehensive three-year plan to modernize the country’s payment landscape, with a focus on enhancing legislation, infrastructure, and public trust in digital payments, Central Bank Governor Nandalala Weerasinghe said.   

Key elements of the plan include revising the Payment and Settlement Systems Act and updating subsidiary regulations, such as the Guidelines on Minimum Compliance Standards for Payment-Related Mobile Applications, by 2025 to accommodate the rapid growth of retail digital payments, he disclosed. .

In 2024, the Central Bank implemented a new Real-Time Gross Settlement (RTGS) system compliant with ISO 20022 standards, which will soon extend to cross-border transactions.

 Efforts are underway to expand the Common Electronic Fund Transfer Switch (CEFTS), targeting broader access, especially for government payments.

Additionally, the Government Digital Payment Platform (GDPP) will be operationalized in 2025, enabling real-time payments to government institutions without digitalized databases, CB Governor disclosed. . .

The Central Bank also aims to strengthen the access regime for interbank payment systems and adjust the licensing framework for payment services. From January 2025, the Merchant Discount Rate (MDR) for LANKAQR has been restored to 1%, incentivizing financial institutions and FinTechs to encourage wider adoption.

Recognizing the risks associated with digital payments, the Central Bank has prioritized safeguarding public trust by monitoring fraud patterns and enhancing security.

 A circular to protect customer accounts from unauthorized access via payment apps will take effect in March 2025. Additionally, nationwide awareness campaigns will educate the public on digital payment services, their benefits, and associated security measures to mitigate fraud and scams.

These initiatives are set to strengthen Sri Lanka’s payment ecosystem, promoting innovation, security, and trust in digital transactions while driving the country’s financial modernization.

Strengthening Financial Consumer Protection is one of the key priorities as the Central Bank aims to foster a more transparent and consumer-centric sustainable financial system.

A series of strategic initiatives are planned for 2025 and beyond in this regardin order to enhance the trust of financial consumers in the financial system.

The scope of market conduct supervision is expected to be broadened by increasing the frequency and depth of on-site examinations of market conduct.This aims to ensure greater compliance with Financial Consumer Protection

Regulations and to address emerging financial consumer risks. In order to address critical financial consumer risks and dissatisfaction and to set clear guidelines to prevent unfair practices and ensure compliance, Directions focusing on issues such as fees and charges, penalties, and the imposition of interest on future obligations are to be issued.

By: Staff Writer

January 14, Colombo (LNW): Sri Lanka’s external sector maintained its positive momentum in 2024, marking two consecutive years of current account surpluses—a rare achievement in the country’s recent history, the Central Bank announced. 

The Balance of Payments position strengthened further, with the Central Bank purchasing over $2.8 billion in foreign exchange from the domestic market, the highest-ever annual net purchase.

Consequently, gross official reserves rose to $6.1 billion by the end of 2024, up from $4.4 billion in 2023.

The Central Bank adhered to its flexible exchange rate policy, complemented by the Flexible Inflation Targeting (FIT) framework, which contributed to the Sri Lankan rupee appreciating and stabilizing throughout the year.

These developments were driven by improved market sentiment and steady net forex inflows.The financial sector demonstrated enhanced resilience and stability in 2024 as the lingering effects of the economic crisis subsided.

The banking sector reported growth in gross loans and receivables, alongside a declining non-performing loan (NPL) ratio, indicating reduced default risks. Liquidity Coverage Ratios (LCRs) consistently exceeded regulatory minimums, and the Return on Equity (ROE) and Capital Adequacy Ratio (CAR) also showed marked improvements.

Similarly, finance companies recorded recovery in loans, advances, and profitability, while financial markets operated with low stress due to better macroeconomic conditions and investor confidence.

The Central Bank advanced its regulatory and governance frameworks to ensure financial stability. The Banking (Amendment) Act and related directives addressed areas such as large exposures, corporate governance, liquidity ratios, and related party transactions.

A Bank Recapitalisation Strategy was also developed to restructure and recapitalize nine large domestic banks, enhancing their stability and resilience. Additionally, the Depositor-wise Data Collection System was introduced to improve compensation efficiency under the Sri Lanka Deposit Insurance Scheme (SLDIS), ensuring streamlined depositor information management.

In 2024, the Central Bank achieved significant milestones in strengthening the resolution framework under the Banking (Special Provisions) Act (BSPA). This included the formulation of resolution policies and directives to licensed banks for effective resolution planning, contributing to a more robust financial sector.

Overall, 2024 marked a year of resilience and progress for Sri Lanka’s external and financial sectors, with significant strides in stability, regulatory reform, and economic recovery.