FT Sri Lanka (2026)

12/01/2026

Sri Lanka is described as one of the cheapest and most beautiful places to retire in Asia, according to insights from the Annual Global Retirement Index.

Retiring abroad continues to appeal to those seeking a high quality of life without the high costs associated with the US and other Western countries. According to the Annual Global Retirement Index, several Asian destinations stand out for offering exceptional value for money, combining affordable living, good healthcare, accessible transport, and rich lifestyles.

Among the most budget-friendly retirement havens identified are 1) Sri Lanka, 2) Vietnam, 3) Thailand, 4) Bali (Indonesia), and 5) Malaysia, with Sri Lanka emerging as the most affordable option overall.

Written by Roland Dalton, Sri Lanka was described as one of the cheapest and most beautiful places to retire in Asia.

Retirees report living an “extravagantly comfortable” lifestyle for around $ 2,200 a month, while others manage a fulfilling standard of living for as little as $ 1,000 a month, including rent, meals, and leisure.

One retiree couple said their beachside villa costs just $ 385 per month, complete with a tropical garden and plunge pool, while utilities rarely exceed $ 50. Even more premium lifestyles remain affordable. In Kandy, for example, a three-bedroom colonial home with a full-time maid, full-time driver, and part-time gardener can cost about $ 2,800 per month all-inclusive.

“Eating out is outrageously affordable. A three-course meal with drinks at an international restaurant is about $ 50 for two, while local dishes cost as little as $ 2 per person. We regularly splurge on Sunday brunch at a five-star hotel in Colombo: free-flowing beer and champagne, with lobster, crab, oysters, and Australian steak for $ 40 per person. One of our favourite beachside seafood feasts—lobster, crab, prawns, fish, and oysters for two—costs just $ 35,” they said.

Read The DailyFT for more: https://www.ft.lk/front-page/Sri-Lanka-tops-list-of-Asia-s-most-affordable-retirement-havens/44-786818

12/01/2026

Sri Lanka’s workers’ remittances surged to unprecedented levels in 2025, delivering a crucial boost to the country’s external finances as the economy continues its post-crisis recovery. December inflows soared to a historic high of $ 879.1 million, a sharp 43.2% year-on-year (YoY) increase, pushing total remittances for the year past $ 8.07 billion, marking a 23% YoY increase and the strongest annual performance in the country’s history.

The performance marks the strongest annual inflow on record, underscoring renewed confidence in formal remittance channels and cementing migrant worker earnings as the country’s single largest source of foreign exchange.

The 2025 outcome also surpassed the previous all-time annual record of $ 7.24 billion recorded in 2016 by around 12%, firmly establishing workers’ remittances as the country’s leading source of foreign exchange during its ongoing recovery from the 2022 economic crisis.

Central Bank of Sri Lanka (CBSL) data show that the rebound in remittances has been both sharp and sustained since the crisis-induced collapse in 2022, when inflows fell to a 12-year low of $ 3.78 billion. The turnaround began in 2023, when remittances surged 57% to $ 5.96 billion, marking the strongest post-crisis recovery.

This momentum continued into 2024, with inflows rising a further 10.1% YoY to $ 6.57 billion, supported by a wave of outbound labour migration as Sri Lankans sought overseas employment following the economic collapse.

Although overseas departures eased slightly in 2025, remittance inflows continued to rise, indicating higher per-worker transfers. During the year, 310,915 skilled and semi-skilled workers left the country for foreign employment, including 190,609 men and 120,036 women. Total departures declined 1.2% YoY, yet remittances increased sharply, highlighting improved confidence in formal transfer channels and stronger earnings abroad.

Read The DailyFT for more: https://www.ft.lk/front-page/Dec-workers-remittances-hit-all-time-high/44-786821

12/01/2026

Total private sector borrowings in November 2025 peaked to Rs. 262.6 billion, the highest monthly figure yet for 2025, before the devastating Cyclone Ditwah hit the island.

October 2025 was the second highest at Rs. 246.10 billion, followed by Rs. 236 billion in September, and Rs. 227 billion in August.

According to the latest Central Bank of Sri Lanka (CBSL) data, domestic banking sector credit to the private sector in November amounted to Rs. 262.6 billion, taking the outstanding private sector debt stock to Rs. 10 trillion, up 26% from a year ago, with the debt stock from domestic banks increasing 27.9% year-on-year (YoY) to Rs. 9.43 trillion and up 1.1% to Rs. 595.3 billion from overseas banking units.

The outstanding credit stock to the Government grew 0.1% YoY to Rs. 8.11 trillion as of end-November 2025, with credit from domestic banks down 0.7% YoY to Rs. 6.18 trillion.

Total credit to public corporations was down 11.3% YoY to Rs. 584.8 billion, with the domestic banking sector debt stock at Rs. 531 billion, down 12.6% from a year ago.

In end-November 2025, the CBSL, delivering the sixth and final Monetary Policy Review for 2025 announced that rates would remain unchanged at 7.75%.

That was before the devastating Cyclone Ditwah hit the country in the last week of November and early December 2025.

Post-Ditwah, CBSL Governor Dr. Nandalal Weerasinghe said the CBSL expected supply chain disruptions from the cyclone to cause only a brief increase in inflation to about 3%.

He said inflation should revert once bottlenecks clear. “Over a period of time, once supply chain issues are addressed, I would say we will come back to the normal inflation trajectory,” he said. “We will maintain stability going forward, as we have been doing so far under the framework.”

Read The DailyFT for more: https://www.ft.lk/front-page/Private-borrowings-peak-at-Rs-262-b-in-November-before-Ditwah/44-786823

12/01/2026

Sri Lanka has emerged from its economic crisis with valuations that are difficult to ignore and assets that are priced well below their long-term potential, creating what Hosking Partners Founding Partner Django Davidson described as a “very compelling opportunity” for patient investors.

Hosking Partners is the largest foreign investor in Sri Lanka’s capital market which built its portfolio during Sri Lanka’s worst economic crisis, prompting Davidson at the outset to praise CT Smith Securities Consultant and CT Holdings Director Marianne Page for her pioneering service to attract foreign investment to Sri Lankan capital markets.

Speaking at a presentation on ‘The Capital Cycle Way,’ held in collaboration with CT Smith Securities last Thursday (8), Davidson said the scale of capital destruction during Sri Lanka’s recent downturn has reset the investment landscape in a way rarely seen outside deep emerging-market crises.

He said capital had been withdrawn across equities, bonds, and private investment during the crisis, leaving many established businesses trading below the cost of replacing their assets. Such conditions, Davidson argued, tend to discourage new capacity and instead reward consolidation, discipline, and long-term ownership.

Davidson noted that foreign portfolio participation in the Colombo Stock Exchange (CSE) has fallen sharply since 2020, following the Easter Sunday attacks, the pandemic, and the temporary market closure that year. While these events damaged investor confidence, he said they also created valuation distortions that can take years to unwind.

Read The DailyFT for more: https://www.ft.lk/top-story/Sri-Lanka-offers-very-compelling-opportunity-after-crisis-reset-Hosking-Partners/26-786815

10/01/2026

Industry and Entrepreneurship Development Minister Sunil Handunneththi yesterday confirmed that Sri Lanka’s export revenues exceeded $ 17 billion in 2025, highlighting the resilience of the country’s exporters and the impact of coordinated policy support, strategic market development, and targeted capacity-building initiatives.

Addressing the official launch of Sri Lanka Expo 2026, the Minister congratulated the export community, the Sri Lanka Export Development Board (EDB), and all partner institutions for achieving the milestone, describing it as a reflection of both exporter innovation and effective public-private collaboration.

Handunneththi stressed that Sri Lanka Expo 2026, to be held after a 14-year hiatus, is not merely an exhibition, but a strategic national platform designed to help exporters pe*****te new markets, attract international buyers, and showcase the best of Sri Lanka to the world. “Sri Lanka Expo 2026 should serve as a catalyst for export expansion, diversification, and long-term economic resilience,” he added.

He said the Expo brings together policies, products, and people to create tangible business opportunities in global markets.

The Minister noted that Sri Lanka must pursue an ambitious export agenda by diversifying its export basket, expanding into emerging markets beyond traditional destinations and adding greater value across sectors. “Agriculture, lifestyle products, ICT, and creative industries, all have strong potential to scale up, provided they gain the right exposure, connections, and institutional support,” he added.

Read The DailyFT for more: www.ft.lk

10/01/2026

The Consulate General of Sri Lanka in Guangzhou, in partnership with the Sri Lanka Tourism Promotion Bureau, successfully hosted the “Sri Lanka Is Ready” networking evening. The event attracted over 60 senior executives and key industry figures, including representatives from the Guangzhou International Travel Fair, leading outbound tour operators from Guangzhou and Shenzhen, prospective Chinese travellers, and prominent Chinese media and social media influencers, alongside representatives from SriLankan Airlines.

This gathering served as a definitive platform to showcase the island nation’s complete recovery, operational readiness, and deepened partnership with the Chinese travel trade.

In her opening remarks, the Consul General of Sri Lanka Lashinka Dammullage, extended the heartfelt gratitude of Sri Lanka to the Government and people of China for their steadfast solidarity and generous support following recent challenges. She highlighted that the bilateral partnership has grown stronger, a fact evidenced by the remarkable rebound in tourism. She reaffirmed that the country is fully operational, with all tourism services functioning normally, and emphasised the importance of continued collaboration with trade and media partners to convey this message to prospective travellers across Guangdong and Southern China.

China has solidly reaffirmed its position as Sri Lanka’s fifth-largest international tourism source market. In a strong signal of recovery and demand, Sri Lanka welcomed over 132,000 Chinese visitors in 2025.

In a special address, Sri Lanka Tourism Promotion Bureau Chairman Buddhika Hewawasam, emphasised the strategic importance of the Chinese market. “Sri Lanka is fully open and ready to welcome you,” he stated. “Southern China is very well connected to Colombo, with SriLankan Airlines operating four weekly flights and Cathay Pacific offering daily services. We are a destination like no other, one of the world’s most desirable islands, offering a unique and condensed wealth of experiences.”

Read The DailyFT for more: www.ft.lk

10/01/2026

Sri Lanka Insurance Corporation General Ltd., (SLICGL) was the Official Insurance Partner of the ‘Kedella Art of Living 2025’ Home and Lifestyle Exhibition, held from 14–16 November 2025, at the BMICH, Colombo, conducted for the 19th consecutive year.

Recognised as one of Sri Lanka’s leading construction and lifestyle exhibitions, Kedella attracted thousands of homeowners, builders, architects, interior designers, and entrepreneurs from around the country.

SLICGL firmly believes every Sri Lankan deserves the peace of mind knowing their home is secure. At Kedella 2025, SLIC highlighted the importance of home insurance in safeguarding families against unforeseen risks such as fire, natural disasters, and accidents. SLICGL also emphasised home insurance is no longer a luxury but necessity for protecting one’s most valuable asset.

In addition, with property ownership on the rise and lifestyle investments growing, SLICGL’s Home Protect Insurance is designed as a comprehensive insurance policy, with customised offers for today’s homeowners.

Read The DailyFT for more: www.ft.lk

09/01/2026

Sri Lankan exports to Saudi Arabia recorded a 19% increase from January to September 2025, compared to the corresponding period in 2024.

Ambassador of Sri Lanka to the Kingdom of Saudi Arabia Ameer Ajwad, stated that this double-digit growth represents an outstanding accomplishment in 2025, achieved through sustained and well-coordinated efforts undertaken by the Embassy of Sri Lanka in Riyadh in close collaboration with the Foreign Affairs, Foreign Employment and Tourism Ministry, the Department of Commerce, the Sri Lanka Export Development Board, the Sri Lanka Tea Board, and other relevant institutions.

The Ambassador further noted that the Embassy adopted a concerted strategy aimed at enhancing the visibility of Sri Lankan products, including active participation in major international trade exhibitions held across the Kingdom of Saudi Arabia.

Ambassador Ajwad also stated that total bilateral trade between Sri Lanka and Saudi Arabia expanded by 9%, reflecting the growing complementarities and strengthening economic partnership between the two countries.

Trade volumes have continued to increase steadily, with Saudi Arabia remaining a key export market for Sri Lankan products such as tea, spices, fruits, vegetables, coconut-based products, processed foods including frozen seafood, construction materials, and other consumer goods. Concurrently, Sri Lanka continues to import essential commodities and energy supplies from the Kingdom, underscoring a balanced and mutually beneficial trade relationship.

Read The DailyFT for more: https://www.ft.lk/business/Sri-Lankan-exports-to-Saudi-Arabia-record-19-increase-in-2025/34-786706

09/01/2026

India aims to move decisively from announcements to ex*****on in its economic engagement with Sri Lanka in 2026, with a sharper focus on investments, connectivity, digital collaboration, and concessional financing, while awaiting Colombo’s formal position on upgrading the bilateral trade framework, Indian High Commissioner to Sri Lanka Santosh Jha said yesterday.

Addressing a press conference in Colombo, Jha underscored that Sri Lanka holds a central place in India’s regional economic strategy, describing the relationship as one of India’s most important partnerships under its Neighbourhood First approach. He said India viewed its engagement with Sri Lanka not as episodic crisis support but as a long-term economic partnership anchored in delivery and scale.

The shift was most visible in India’s $ 450 million post-Cyclone Ditwah assistance package, comprising $ 350 million in concessional lines of credit in Indian Rupees and $ 100 million in grants (in US dollars).

“It is not the announcement of the package that is that important but its implementation and delivery,” Jha said, noting that a joint monitoring and review mechanism was already operational to accelerate ex*****on.

He said grant-funded projects were being prioritised to ensure faster roll-out, including bridge reconstruction, restoration of railway links, water purification facilities, and housing repairs, while negotiations on the concessional credit lines were being concluded in parallel. The objective, he said, was to ensure that financing translated quickly into visible economic and social outcomes.

Read The DailyFT for more: https://www.ft.lk/front-page/India-keen-on-ex*****on-led-economic-engagement-with-Sri-Lanka-in-2026/44-786695

09/01/2026

Sri Lankan garment manufacturers have now gained unprecedented access to UK markets under liberalised trade rules.

The changes allow manufacturers to source up to 100% of inputs for garments from any country worldwide whilst maintaining tariff-free access to the UK market. Fewer processing requirements now apply, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka.

The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka. This enables Sri Lankan manufacturers to source materials from regional partners whilst maintaining preferential tariff benefits.

British High Commissioner Andrew Patrick said: “The reforms that are now in force demonstrate the UK’s commitment to creating shared prosperity through trade partnerships. By simplifying rules of origin, we are supporting Sri Lanka’s economic growth by improving market access to the UK and helping to further diversify exports. We recognise the Sri Lankan Government’s ambition for export growth and continue to advocate for improved utilisation of the scheme. Therefore, I invite exporters to explore how they can benefit from these reforms and access the zero tariffs that the Developing Countries Trading Scheme (DCTS) offers.”

Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said: “The reforms to the UK’s DCTS remove previous restrictions requiring materials to be sourced regionally. Sri Lankan manufacturers can now compete equally by accessing global supply chains. The garment sector accounts for over 60% of Sri Lanka’s exports to the UK and supports 1 million livelihoods across the country. It is a significant boost for our export potential to an important market, and we are excited to work with buyers and manufacturers in creating significant growth from this opportunity.”

Read The DailyFT for more: https://www.ft.lk/front-page/Sri-Lankan-garment-exports-gain-tariff-free-access-to-UK-from-1-January/44-786696

09/01/2026

Dr. Mahinda Parakrama Dissanayake, a distinguished maritime, logistics, and corporate leader, has been appointed Adviser to the President on Maritime, Ports and Logistics with immediate effect.

Dr. Dissanayake is currently Deputy Chairman and Managing Director of Aitken Spence PLC and holds several senior leadership roles within the Group. He previously served as Secretary to the Ministry of Ports, Shipping and Southern Development and has twice held the position of Chairman of the Sri Lanka Ports Authority (SLPA).

He has accepted the position on an honorary basis.

President Anura Kumara Dissanayake expressed his gratitude to Dr. Dissanayake for accepting this important responsibility, which aims to fulfil the Government’s objective of leveraging the country’s strategic position and unlocking its full potential as a key logistics hub.

An internationally respected professional, Dr. Dissanayake has served as an expert on shipping with the UN/UN Conference on Trade and Development (UNCTAD) Panel. He has also led the Chartered Institute of Logistics and Transport (Sri Lanka) and the Institute of Chartered Shipbrokers (Sri Lanka).

Dr. Dissanayake was the first non-British International President of the Institute of Chartered Shipbrokers (UK) since its founding in 1911.

His academic and professional credentials include Chartered Shipbroker (UK), Chartered Fellow of Logistics and Transport (UK), postgraduate qualifications in business and marketing, executive education at Harvard Business School, Oxford and Cambridge, and visiting professorships in maritime studies.

Read The DailyFT for more: https://www.ft.lk/front-page/Dr-Parakrama-Dissanayake-appointed-Adviser-to-President-on-Maritime-Ports-and-Logistics/44-786697

09/01/2026

The Central Bank of Sri Lanka (CBSL) yesterday outlined an ambitious and wide-ranging policy agenda for 2026 and beyond, placing price stability, financial system resilience, climate risk management, and institutional modernisation at the centre of the country’s transition from post-crisis recovery to durable, inclusive growth.

Delivering the annual policy address, CBSL Governor Dr. Nandalal Weerasinghe said Sri Lanka enters 2026 with stabilised macroeconomic conditions, stronger buffers, and renewed growth momentum, but cautioned that sustaining these gains would require disciplined policymaking, institutional credibility, and continued reforms, particularly in the face of climate shocks, global uncertainties, and evolving financial risks.

“The economic growth is expected to remain around 4-5% in 2026, supported by expanding private sector credit, easing financial conditions, and improved macroeconomic buffers,” he said. Inflation, which remained below the 5% target for an extended period following deflationary pressures, is projected to gradually rise and converge to target by the second half of 2026, subject to risks linked to supply disruptions and post-cyclone reconstruction dynamics.

He stressed that the CBSL would remain vigilant to supply-side shocks, particularly from climate-related events such as Cyclone Ditwah, while acknowledging the limited role of monetary policy in directly offsetting such shocks.

Read The DailyFT for more: https://www.ft.lk/top-story/CBSL-maps-2026-reform-drive-with-focus-on-price-stability-financial-resilience-and-data-driven-policy/26-786691

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