ECONOMYNEXT — Several proposed developments for Sri Lanka’s Colombo Port City, including a private hospital, an educational institute, and a gaming casino, have dropped out, a parliamentary committee was told.

Colombo Port City Economic Commission (CPCEC) Director General Revan Wickramasuriya told the Committee on Public Finance (COPF) that out of ten earlier projects, five had withdrawn while five remained operational.

The dropped ventures include an Asiri Hospital project, a Gateway educational facility, and a mixed development by Clothespin Management and Development. Another applicant, Universal Entertainment Colombo, exited during due diligence for a 10-hectare plot earmarked for an integrated resort.

“That was another applicant that considered the integrated resort plot… They came in; they, again, withdrew during their due diligence,” Wickramasuriya said.

Despite the pullouts, primary investments across nine leased land parcels have reached 1.12 billion US dollars, with lease agreements executed and completed for two residential, two mixed-use, marina, and hotel plots.

“The Marina has started. Piling for the CIFC has started. ICC Bay 1 is at the first-floor stage. At Home Lands, piling work is underway. For Prime Melwa Project 1, piling is also underway,” CPCEC Chairman Harsha Amarasekera said.

Among the active developments, Ceylon Real Estate Holdings has begun piling for the Colombo International Financial Centre (CIFC).

Backed by a 515-million-US-dollar investment for its first phase, the 160,000-square-metre flagship mixed-use development will integrate premium office space, luxury residences, and a retail podium to anchor Sri Lanka’s emergence as a regional financial and business hub.

A sixth signed venture, the Marina Hotel, has yet to start, while residential construction by ICC Port City is underway.

The commission is also targeting an additional one billion US dollars in pipeline investments over the next 12 months near the central business district.

Colombo Port City has 118 land parcels. China-backed CHEC Port City Colombo will market 48, while the government will sell 28 and retain common areas. (Colombo/Oct15/2026)

ECONOMYNEXT – Sri Lanka’s LOLC Holdings has refuted social media rumors regarding its local-currency borrowing from state-owed People’s Bank, adding that the facility is fully secured against its own US-dollar deposit with the bank.

“There is therefore no factual basis for suggestions that the existence or location of the deposit is uncertain, that People’s Bank would have to pursue or recover an unidentified asset situated overseas, or that the transaction represents an unsecured exposure of public deposits,” the company said in a market filing.

The full statement is reproduced below:

LOLC HOLDINGS PLC – Public clarification on misleading information concerning People’s Bank Facility

This refers to certain misleading and factually inaccurate information currently being circulated through online and social-media channels concerning a banking facility involving the LOLC Group and People’s Bank.

LOLC categorically rejects the misleading narrative being created around this transaction.

The fundamental fact is straightforward: the local-currency borrowing is secured against a US dollar deposit maintained with People’s Bank itself.

As part of its global treasury operations, LOLC Group entities maintain US-dollar deposits with a number of international and local banks, including People’s Bank, while Sri Lankan Group entities utilize the value of such deposits as security to raise local-currency funding. Accordingly, People’s Bank itself holds full collateral supporting the facility which is the most secure form of bank credit.

There is therefore no factual basis for suggestions that the existence or location of the deposit is uncertain, that People’s Bank would have to pursue or recover an unidentified asset situated overseas, or that the transaction represents an unsecured exposure of public deposits.

The arrangement is a conventional treasury transaction undertaken as part of the Group’s management of funds and foreign-currency resources across multiple currencies and jurisdictions. Rather than converting an existing US-dollar asset into Sri Lankan rupees, the Group preserves that foreign currency asset while utilizing its value to raise local-currency funding in Sri Lanka and across its wider international operations spanning 27 countries. Such structures form part of commonly used treasury and foreign-exchange risk-management practices adopted by multinational groups globally.

Attempts to portray this straightforward, cash-secured transaction as evidence of questionable banking practices, foreign-exchange speculation or improper use of public funds are without factual foundation and create a materially distorted impression of the transaction.

LOLC is therefore treating the matter with the seriousness it warrants and is bringing relevant publications, and the dissemination of materially misleading information contained therein, to the attention of the appropriate regulatory and other authorities.

The Group also reserves and intends to exercise all rights and remedies available to it under applicable law against persons and organizations responsible for originating, publishing, knowingly republishing or recklessly continuing to disseminate materially false or misleading information concerning the Group, where the applicable legal thresholds are satisfied.

LOLC will continue to conduct its operations transparently and responsibly and will not hesitate to take appropriate action to protect the interests of the Group and its stakeholders.
(Colombo/Oct15/2026)

ECONOMYNEXT – Galadari Hotels said it will reopen its landmark Colombo city hotel as the ‘Radisson Blu Hotel Galadari Colombo’ during the fourth quarter of 2026.

The 450+ room hotel overlooking Galle Face Green and the Indian Ocean is currently undergoing refurbishment.

“On conclusion of the ongoing Hotel renovation and pursuant to the approval from Radisson Hospitality Belgium BV in terms of the Hotel Management Agreement, the reopening of the Hotel as ‘Radisson Blu Hotel Galadari Colombo’ will be scheduled during the fourth quarter of 2026,” it said in a market filing.

Galadari Hotels entered into a Hotel Development Services Agreement and a Hotel Management Agreement with Raddison Hotel Asia Pacific Investments Pte Ltd in 2023. (Colombo/Oct15/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened higher on Thursday, CSE data showed, with the benchmark All Share Price Index moving up 0.47 percent.

The ASPI was up 93.22 points at 19,889.28, while the more liquid S&P SL20 was up 0.30 percent, or 16.93 points, at 5,693.36.

Positive contributors to the ASPI were Carson Cumberbatch (up 6.79 percent at 700.00 rupees), LOLC Finance (up 4.35 percent at 4.80 rupees), LOLC Holdings (up 2.98 percent at 414.75 rupees), and Commercial Bank of Ceylon (up 0.38 percent at 198.00 rupees).

Dialog Axiata (down 0.71 percent at 42.00 rupees), Overseas Realty (Ceylon) (down 0.82 percent at 48.60 rupees), Singer (Sri Lanka) (down 0.56 percent at 71.40 rupees), and Aitken Spence (down 0.19 percent at 133.00 rupees) were top negative contributors.

Market turnover was 494.54 million rupees. The Banks industry group led turnover with 95.89 million rupees.

Pan Asia Banking Corporation’s debentures were listed on the exchange. The listing includes a three-year debenture carrying a fixed coupon rate of 12.75 percent per annum and a five-year debenture at 13.50 percent per annum, both with interest payable annually.

Union Assurance and Nations Trust Bank announced the renewal of their bancassurance partnership agreement, extending their collaboration for the distribution of life insurance products. Both entities are part of listed conglomerate John Keells Group.

Lanka credit and Business Finance announced a first interim dividend of 0.2 rupees per share.

PMF Finance was imposed a penalty for non-disclosures after delaying to disclose a series of acquisition of shares by its Non-Independent Non-Executive Director Nemantha Abeysinghe. (Colombo/Oct15/2026)

ECONOMYNEXT — Sri Lanka’s Pan Asia Banking Corporation has listed its 12.75 and 13.50 percent debentures on the Colombo Stock Exchange (CSE), the company said in a market filing.

The listed, rated, senior, unsecured, redeemable debt securities have been issued across 3-year and 5-year tenors, carrying an annual coupon option:

The lender’s public debenture issuance sought to raise 5 billion rupees through 50 million debentures at 100 rupees each.

The debenture sale was oversubscribed on its opening day, drawing investor interest. (Colombo/Oct15/2026)

ECONOMYNEXT — Sri Lanka can recover the entire 9.7 billion rupees spent by the Treasury on the Colombo Port City once it leases its first state-owned land parcel, officials told parliament’s Committee on Public Finance (COPF).

The Ministry of Finance informed the committee that 9.7 billion rupees had been allocated from the budget for the development.

COPF Chairman Harsha de Silva asked for a detailed breakdown of the spending, questioning whether the state had received equity, a loan repayment, or if the allocation was treated as a grant.

“It’s the budgeted amount as government money. It’s not a grant or it’s not a loan. It’s a government budgeted amount,” A Saarrankan, Additional Director General of the Corporate Affairs Division at the Ministry of Finance, said.

Colombo Port City Economic Commission (CPCEC) Chairman Harsha Amarasekera told the committee that the state is now positioned to market its first land parcel because 7 private project company plots have already been leased, fulfilling the required proportion of one government plot for every seven.

The commission has already identified four government plots and is preparing to market one of them to investors, Amarasekera said.

“The moment that is done, all of such funds, sans the 1 percent, goes to the Consolidated Fund… So with the sale of the first government plot, the totality of the moneys thus far spent would be recovered by the state,” Amarasekera said.

The committee noted that the 1 percent commission on transactions completed so far amounts to roughly 400 million rupees, pointing to a cumulative lease value of around 40 billion rupees for those plots on 99-year lease agreements.

Officials added that the project company had sold land at approximately 3,000 US dollars per square metre.

Providing a breakdown of the overall property allocation, CPCEC Director General Revan Wickramasuriya said all land was vested with the Commission under a presidential grant via the State Lands Ordinance.

Out of 118 total land parcels in the Port City, 46 were leased to the Project Company, 10 of which have since been surrendered and leased to specific investors.

The government holds 28 marketable land parcels, with the remainder reserved for public areas and parks. (Colombo/Oct15/2026)