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The Joint Apparel Association Forum (JAAF) welcomes the Public Utilities Commission of Sri Lanka’s (PUCSL) call for a simple, transparent and cost-based wheeling tariff, describing it as a practical step towards more competitive energy for Sri Lanka’s industries.
Speaking at the Sri Lanka Economic and Investment Summit 2026, PUCSL Director General and CEO Damitha Kumarasinghe said the tariff should be easy to understand, affordable enough to encourage investment, and fair to transmission and distribution companies, covering their costs with a reasonable return. He said discussions are at an early stage and depend on the gazetting of the relevant legal provisions.
Wheeling allows electricity generated by one party to be carried through the national grid to another customer for a regulated charge. For manufacturers, it could mean more flexibility in how they buy power and the ability to agree supply terms directly with generators.
Kumarasinghe also said investors should be able to secure electricity before committing capital, instead of waiting for generation capacity to follow an investment decision. He estimated that 15% to 20% of electricity could eventually be traded through a market mechanism, and said both wheeling and market-based trading need to be developed.
From JAAF’s perspective, the wider energy policy picture matters just as much. Open access and power wheeling regulations are moving towards being fast-tracked, and stronger incentives for battery storage are set to sit alongside them. Together, these steps could give manufacturers power options that are more dependable and more sustainable.
JAAF encourages the prompt gazetting of the legal provisions needed to move the tariff forward, and a simple, transparent, cost-based tariff that does not discourage investment. It also calls for consultation with industry, including exporters and other energy users, before the tariff is finalised, and for fair access for businesses of all sizes, including small and medium manufacturers.
JAAF looks forward to working with PUCSL, the Ministry and other stakeholders so that wheeling and electricity market reforms deliver certainty for investors and competitive energy for exporters.
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For the past decade, global liquidity has heavily favored developed markets, tech-heavy infrastructure in the United States and China, and concentrated domestic asset classes. Meanwhile, frontier markets – including Sri Lanka – have watched foreign portfolio participation recede significantly from the historic highs recorded 10 to 14 years ago.
However, the tide may finally be turning.
Marked by Capital Alliance Holdings’ (CAL) landmark agreement to acquire a 51% controlling stake in Hong Kong-based fund manager Asia Frontier Capital Ltd (AFC), the landscape surrounding frontier investments is undergoing a major strategic recalibration.
Capturing this pivotal sentiment, Deshan Pushparajah, Managing Director of Global Markets and Investment Banking at CAL, noted that global market dynamics are creating a fresh runway for capital allocation into high-growth, overlooked geographies.
“We think this is probably the start of a cycle for frontier again, as global markets kind of top up, as well that a lot more capital can be allocated to frontier,” Pushparajah said.
Kanishke Mannakkara, Group CEO of CAL, emphasised that financial markets naturally operate on cycles and pendulums. As massive capital pools concentrate heavily in mainstream tech and AI infrastructure, global institutional investors are increasingly searching for genuine diversification – what finance professionals famously describe as the “only free lunch” in portfolio management.
Mannakkara pointed out that capital flight from frontier economies over the past decade wasn’t merely a localised rejection of Sri Lanka’s domestic macroeconomic challenges, but part of a broader, cross-border retreat in the current global context.
“Yet, as global markets reach maturity and traditional avenues look crowded, cycles inevitably turn,” Mannakkara observed. “Even capturing a fraction of global capital flows could inject unprecedented liquidity into overlooked frontier ecosystems.”
Mannakkara pointed out that perception remains one of the largest structural hurdles: “One of the greatest barriers to frontier market investment has always been perception. To the average international investor, frontier regions are often blanketed under a label of ‘high risk.'”
CAL and AFC aim to dismantle this stigma through localised proximity and ground-level expertise. By understanding these markets intimately, investors will realise that the actual risk is often lower than the perceived risk.
“Through this partnership, CAL aims to bridge that gap – lowering the ‘risk premium’ traditionally demanded by foreign investors by delivering transparency, trusted access, and deep institutional insight. That is what we will do with AFC,” he added.
“By positioning ourselves at the front-end of this structural shift, CAL and AFC are signaling that frontier markets are not just viable, but primed for a resurgence. As global portfolios look for new horizons to diversify and capture undervalued assets, the stage is set for a new chapter in frontier investing,” he noted.
During the discussion on foreign investment frameworks, Thomas Hugger, Founder and CEO of Asia Frontier Capital, offered a compelling perspective on how developing countries can position themselves to attract international institutional capital. Pointing to Uzbekistan as a prime case study, Hugger’s analysis provides valuable lessons for nations like Sri Lanka as they navigate economic recovery, debt restructuring, and long-term structural reform.
At the heart of Uzbekistan’s investment appeal, according to Hugger, is the presence of strong, decisive leadership combined with a clear, long-term national vision. In many developing nations, the policymaking process can become bogged down by bureaucratic friction and conflicting institutional voices. However, Uzbekistan’s administration has demonstrated that a strong hand at the helm can streamline processes, cut through red tape, and foster an environment where foreign investors feel confident committing long-term capital.
“For Sri Lanka, which often grapples with policy inconsistency and fragmented decision-making across various statutory bodies, establishing a cohesive, predictable, and decisive investment climate is paramount,” he said.
“Another critical pillar of Uzbekistan’s strategy is its pragmatic openness to the global community. Rather than aligning exclusively with a single power bloc or economic superpower, Tashkent has pursued an open-door policy toward all major international players. This inclusive approach welcomes capital from diverse geographies and global financial centers,” he noted.
Hugger emphasised that international investors – particularly institutional heavyweights managing portfolios across dozens of jurisdictions – look for countries that play on a global stage without unnecessary friction or geopolitical hurdles.
Crucially, Hugger pointed out that a successful investment destination makes it easy not only for investors to enter the market and deploy funds into strong local institutions – such as leading domestic commercial banks – but also to exit smoothly when necessary. Predictability, transparency, and two-way capital liquidity are the hallmarks of trusted markets. Foreign investors, intimately familiar with global market pitfalls, gravitate toward environments where the rules of the game are clear, stable, and fair. Ultimately, foreign capital allocation remains a fierce global competition. With fund managers evaluating dozens of potential destinations, countries must actively curate an attractive investment pool. For Sri Lanka, adopting these lessons means prioritising decisive leadership, dismantling administrative barriers, and ensuring seamless entry and exit mechanisms for global capital. By cultivating a predictable and welcoming ecosystem, Sri Lanka can significantly enhance its competitive edge and secure its place on the radar of global institutional investors,” he said giving a comprehensive response to a query posed by The Island Financial Review.
The proposed transaction, executed through CAL’s Singapore-based subsidiary CAL Global Pte. Ltd., will see CAL acquire a 51% stake – worth about USD 2.5 million – in AFC, subject to regulatory approvals from the Securities and Futures Commission (SFC) of Hong Kong.
The deal directly bridges CAL’s footprint across Sri Lanka, Bangladesh, and Singapore with AFC’s established Hong Kong hub and on-the-ground research teams in Vietnam, Uzbekistan, and Iraq. CAL currently manages in excess of USD 1.2 billion in assets, while AFC manages over USD 125 million across Asian frontier equities.
Once regulatory green lights are cleared, the combined entities plan to expand AFC’s product suite – incorporating frontier fixed-income strategies and specialised market offerings to channel international liquidity directly into regional capital markets.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs.18.30 billion in the second quarter of 2026/27 was broadly in line with the Rs.18.36 billion recorded in the corresponding quarter of the previous year. Growth across most industry groups offset the materially lower contribution from John Keells CG Auto (JKCG), against an exceptionally strong comparative quarter in the previous year, which benefited from pent-up demand following the resumption of vehicle imports.
Cumulative Group EBITDA for the first half of 2026/27 increased by 11% to Rs.34.65 billion.
Group profit before tax (PBT) increased by 2% to Rs.7.95 billion in the second quarter of 2026/27 [2025/26 Q2: Rs.7.80 billion]. The year-on-year comparison was impacted by the exceptionally strong comparative base at JKCG, similar to the impact on Group EBITDA. The appreciation of the Sri Lankan Rupee during the quarter also had a net impact of Rs.340 million on Group PBT. Excluding the impact of net exchange movements, Group PBT was Rs.7.61 billion [2025/26 Q2: Rs.8.04 billion].
Group profit after tax (PAT) at Rs.5.82 billion in the second quarter of 2026/27 is an increase of 39% over the Rs.4.20 billion recorded in the corresponding quarter of the previous financial year.
Profit attributable to equity holders of the parent of Rs.5.17 billion in the second quarter of 2026/27 is an increase of 213% over the Rs.1.65 billion recorded in the corresponding quarter of the previous financial year. The higher flow through to attributable PAT primarily reflects the lower effective contribution from JKCG, in which the Group has an ownership of 50%.
Fitch Ratings upgraded Sri Lanka’s sovereign credit rating to ‘B-’ from ‘CCC+’, a significant milestone that reflects the progress achieved in restoring macroeconomic stability.
Chairperson and CEO Krishan Balendra.
Colombo West International Terminal (CWIT), the project company of West Container Terminal (WCT-1), maintained its strong operational momentum, handling 502,351 TEUs, operating beyond full utilisation of its phase 1 capacity. CWIT became the fastest terminal in the Port of Colombo to handle two million TEUs, reaching this milestone within 18 months of starting operations. Phase 2 operations have commenced, with the progressive commissioning of equipment, and the terminal remains on track for full operations in December 2026.
The Transportation industry group recorded an increase in EBITDA driven by a very strong performance in the Group’s bunkering business, Lanka Marine Services (LMS), with volumes increasing by 31% together with higher margins, and higher contribution from CWIT.
Profitability improved across the Beverages and Confectionery businesses, supported by volume growth of 10% in carbonated soft drinks and 7% in Confectionery, while the Convenience Foods business also recorded improved volumes and profitability.
The Supermarket business recorded 13% same store sales growth, supported by higher basket values and customer footfall. EBITDA increased marginally despite higher electricity and distribution costs, reflecting scale and operational efficiencies.
As anticipated, JKCG’s performance moderated against an exceptionally strong comparative quarter in the previous year, which was supported by pent-up demand after vehicle imports resumed. JKCG handed over more than 2,400 vehicles during the quarter.
The Leisure industry group EBITDA reflected lower contributions from Colombo Hotels and Maldivian Resorts, including the impact of disruptions to travel from the conflict in the Middle East, partly offset by improved profitability across the Sri Lankan Resorts.
The ramp-up of City of Dreams Sri Lanka continued, with improving operating momentum across its key components. Higher occupancy and average room rates supported growth in hotel EBITDA. The casino demonstrated an encouraging improvement in performance as operations progressively scaled up.
The Property industry group recorded an EBITDA growth driven by profit recognition from residential and commercial unit sales at Cinnamon Life and residential sales at TRI-ZEN.
The Group’s share of profit after tax from Nations Trust Bank (NTB) increased, supported by a one-off tax credit arising from the acquisition of HSBC Sri Lanka’s retail banking business. This benefit was partly offset by integration expenses associated with onboarding the acquired business. Union Assurance (UA) recorded growth in gross written premiums, driven by renewal premiums.
While the Group’s carbon footprint and water withdrawal increased in absolute terms, operational intensity metrics across key businesses in the Consumer Foods, Leisure and Transportation industry groups, which account for the majority of the Group’s carbon footprint and water withdrawal, reflected improved efficiency.
The Board declared a first interim dividend of Rs.0.10 (10 cents) per share to be paid on or before 2nd December 2026.
Seylan Bank recorded an 18 percent year on year growth from 2023 to-date,
enabling it to surpassed Rs 1 trillion in total assets for the month of September, marking a significant milestone in the Bank’s growth journey its CEO said.
“We are the fourth private bank to achieve that milestone and it assured us to attract more customers with efficacy and effective service, its CEO Ramesh Jayasekara said.
He said that surpassing Rs 1 trillion in total assets further reinforces confidence in the Bank’s financial strength and growth prospects, while highlighting its continued role in meeting the day-to-day financial needs of its customers. He made these remarks at a media round table briefing held at Seylan Bank head office in Colombo yesterday.
He also said that digital penetration and country’s GDP growth enabled to achieve this milestone to touch the Rs 1 Trillion mark to date. ‘This achievement reflects the dedication of our employees and their continued focus on delivering value to our customers, he added.
“Our customer-centric approach remains central to the way we operate, and we are grateful for the trust our customers have placed in Seylan Bank. As we mark this milestone, we remain focused on building on our growth and further strengthening the value we deliver to our customers, Jayasekara said.
The achievement represents another important step in Seylan Bank’s growth journey, highlighting its expanding scale and the continued contribution of its employees and customers to its progress.
The CEO also said that Rs 1 trillion milestone is further complemented by the Bank’s recent success at the Euromoney Awards for Excellence 2026, where the Bank was named ‘Sri Lanka’s Best Bank for Customer Experience’ and ‘Sri Lanka’s Best Bank for SMEs’ . The Bank retained the Best Bank for Customer Experience title for the second consecutive year, having first received the recognition in 2025.
‘The dual recognition reflects two closely connected areas of Seylan Bank’s strategy: creating more seamless and accessible banking experiences for customers while providing SMEs with specialized financial and non-financial support to help them grow, Jayasekara added.
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