ECONOMYNEXT – Sri Lanka’s LAUGFS Holdings Limited, a diversified conglomerate with interests in energy and supermarkets, has appointed Dhanusha Muthukumarana as Group Managing Director and Group Chief Executive Officer, with effect from October 1, as it seeks to accelerate business transformation and growth across its operations.

Muthukumarana has a background in engineering, technology, leadership and entrepreneurship, the company said.

“The appointment reflects the Group’s focus on strengthening leadership, accelerating business transformation and driving sustainable growth across its diversified portfolio.”

A brief bio, as provided by the company, is reproduced below:

Mr. Muthukumarana is an award-winning professional with more than 26 years of experience across banking and finance, consumer goods, manufacturing, healthcare, logistics, enterprise software and technology consulting, and diversified businesses. He has held senior leadership roles in Sri Lankan and international organisations, including Fortune 500 companies, building expertise in business transformation, enterprise architecture, strategic planning and innovation.

Throughout his career, he has led complex transformation initiatives, improved business operations and aligned technology and operations with corporate strategy. He brings this combination of strategic, commercial and technology leadership to LAUGFS as the Group pursues operational excellence, long-term value creation and value capture.

Mr. Muthukumarana is an executive alumnus of the University of Oxford (Saïd Business School), United Kingdom, where he successfully completed his education in Strategic Innovation and ranked among the top performers in his cohort. He holds a Master of Business Administration (MBA) from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura, and possesses postgraduate qualifications in Information Technology. He is currently pursuing postgraduate studies in Economics.

He is a member of the Institute of Electrical and Electronics Engineers, USA (MIEEE), the Institute of Engineering and Technology, United Kingdom (MIET), and the British Computer Society (MBCS). In 2019, Echelon magazine named him among Sri Lanka’s Top 100 Next-Generation Business Leaders (NE100).

He was also the first Sri Lankan inducted into the Forbes Technology Council.
Established in 1995 as Gas Auto Lanka, LAUGFS has grown into one of the largest diversified Sri Lankan groups, operating across more than 20 industries and employing more than 3,500 people globally. The Group has expanded its portfolio across the Oil & Gas, Renewable Energy, Industrial & Engineering, Logistics, Retail & Consumer, Healthcare, and Services sectors, while extending its operations to international markets.

Driven by a spirit of entrepreneurship, innovation and resilience, LAUGFS has built a strong presence in sectors that contribute to the everyday lives of Sri Lankan communities and the broader economy. With a focus on sustainable growth, operational excellence and long-term value creation, the Group continues to strengthen its businesses while exploring new opportunities for growth and development.

Today, LAUGFS remains committed to creating value for its customers, employees, business partners and other stakeholders, while contributing to Sri Lanka’s economic progress and national development.

With the appointment of Mr. Dhanusha Muthukumarana as Group Managing Director and Group Chief Executive Officer, LAUGFS reaffirms its commitment to strengthening leadership capabilities, fostering strategic innovation and driving operational excellence as the Group continues its transformation journey and pursues new opportunities for growth and value creation across its businesses. (Colombo/Sep30/2026)

ECONOMYNEXT — Sri Lanka’s People’s Leasing & Finance PLC said its debenture issue to raise 10 billion rupees was oversubscribed, announcing the basis of allotment in a market filing

The company had initially offered 50 million listed rated subordinated unsecured redeemable debentures at 100 rupees each.

An additional 50 million debentures were offered as the initial tranche was oversubscribed.

“The Company, having received subscriptions for over One Hundred Million (100,000,000) Debentures for a value of Sri Lankan Rupees Ten Billion (10,000,000,000/-), decided to allot the Debentures on 30th September 2026.”

According to the basis of allotment, 65,050,000 debentures will be allotted to identified investors on a preferential basis, in line with Section 6.7 of the prospectus dated September 18.

For other categories of investors, those who applied for up to and inclusive of 1,000,000 debentures will receive 100 percent of the debentures applied for.

Investors who applied for more than 1,000,000 debentures will receive 1,000,000 debentures plus 84.90 percent of the remaining balance, rounded to the nearest 100 debentures.

“Any differences arising as a result of adjustment of rounding are to be adjusted from the largest debenture applicant whose application amount has not been fully met.” (Colombo/September 30/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved an estimated 180 million rupee project to prepare baseline maps for assessing and regulating the country’s groundwater resources, minister Nalinda Jayatissa said.

The initiative will be carried out over a three-year period starting in 2027.

It will focus on 5 districts across the island: Kurunegala, Anuradhapura, Gampaha, Jaffna, and Hambantota.

The initiative is needed to address growing threats to underground water supplies, including source contamination, rising water demand, and shifts in rainfall and recharge patterns caused by climate change, Jayatissa said.

“There is a pressing need for a structured, reliable, and scientifically grounded groundwater information system to support informed, long-term sustainable decision-making.”

Datasets held by the Water Resources Board, accumulated over many years, are largely fragmented and lack systematic geo-referencing, preventing authorities from using records for spatial analysis or water management.

“This initiative aims to enhance the quality and reliability of groundwater data and strengthen the regulatory capacity of the Water Resources Board.”

Once completed, the new mapping system will support the Water Resources Board in carrying out critical regulatory duties, including water extraction licensing, resource assessment, law enforcement, and national policy implementation. (Colombo/Sep30/2026)

ECONOMYNEXT – Sri Lanka’s Central Bank left its Overnight Policy Rate (OPR) at the current level of 8.75% citing higher inflation was due to the pass-through of the energy shock across multiple sectors of the economy following the Middle Eastern escalation.

The headline inflation hit 8 percent in August.

“Headline inflation is projected to remain in high single digits through Q1-2027, before easing towards the 5% target,” the Central Bank said in a statement.

“Core inflation also increased as a result of spillovers from higher energy prices. In spite of the current spike in inflation, medium-term inflation expectations remain broadly anchored around the target.”

Here is the full Monetary Policy Review statement:

The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy Rate (OPR) at the current level of 8.75%. The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts. The Board paid particular attention to the effects of the proactive monetary policy tightening in May 2026 alongside other measures that had already materialised to a large extent. The Board also recognised the uncertainty arising from evolving geopolitical tensions in the Middle East and potential risks associated with El Niño conditions on the economy.

Domestic economic activity remained resilient, recording a real growth rate of 4.7% (y-o-y) in the first half of 2026. Leading economic indicators point towards continued momentum, although global and climate-related uncertainties could weigh on the outlook. Although growth of credit to the private sector is gradually moderating in response to recent policy measures, credit flows are expected to remain sufficient to support economic activity.

Headline inflation rose to 8.0% (y-o-y) in August 2026, reflecting the pass-through of the energy shock across multiple sectors of the economy. Headline inflation is projected to remain in high single digits through Q1-2027, before easing towards the 5% target. Core inflation also increased as a result of spillovers from higher energy prices. In spite of the current spike in inflation, medium-term inflation expectations remain broadly anchored around the target.

Amid ongoing tensions in the Middle East, the external sector has remained resilient. The current account is estimated to have recorded a surplus in August 2026 after four consecutive months of deficits. This was supported by moderated merchandise imports, along with improved earnings from tourism and workers’ remittances. Gross Official Reserves rose to USD 6.9 bn1 at the end of August 2026, supported by net foreign exchange purchases by the Central Bank. The Sri Lanka rupee, having appreciated against the US dollar in July and August 2026, witnessed mixed movements in September. The recent Sovereign rating upgrade is expected to further strengthen market sentiments.

The Central Bank will remain forward-looking and data-dependent in its policy decisions. Should inflationary pressures intensify or inflation expectations show signs of de-anchoring, the Central Bank stands ready to take timely and appropriate measures to ensure that inflation stabilises around the target, while supporting the economy to operate around its potential over the medium term.

The release of the next regular statement on the monetary policy review will be on 20 November 2026. (Colombo/September 30/2026)

ECONOMYNEXT – Foreign investors sold Sri Lanka rupee bonds for the second straight week in the week ended on September 25, Central Bank data showed, despite a slight appreciation on the  rupee currency.

It was the second time they sold the bonds in the last 15 weeks.

Offshore investors sold a net 9,169 million rupees (US$27.8 million) worth of Sri Lanka rupee bonds, extending the net foreign selling to Rs.16.5 billion in he last two weeks.

Before the two weeks, they bought 92 billion rupees (US$280 million) worth rupee bonds in the previous 13 straight weeks.

The outflows reduced the foreign holdings in government securities to 196.9 billion rupees, down from the  highest figure the Central Bank published in its Weekly Economic Indicators two weeks ago.

Analysts said the net outflows started after tghe rupee depreciation.

The rupee currency’s selling rate fell to a near three-year low of 354 against the U.S. dollar on May 21 before recovering and gaining to the 332 level in the week ended on September 11.

However, last week it gained slightly against the U.S. dollar.

The rupee had been steady for more than three years before the sharp depreciation in May with the Central Bank citing higher oil and vehicle imports amid a lingering conflict in the Middle East.

The rupee has fallen 6.2 percent through September 25 this year.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East escalation.

However, the island nation has enjoyed a total inflow of around 55.7 billion rupees into rupee bonds so far this year, following a net inflow of 71.5 billion rupees last year.

The island nation has seen an uptick in inflation in the last five months following a nearly 50 percent hike in fuel prices.

The government reduced fuel prices twice, in the last weeks of June and August.

The Central Bank raised its key monetary policy rate by 100 basis points in May to curb inflationary pressure stemming from higher demand.

Before the May rate hike, the Central Bank kept its key policy rates steady since May 2025 after reducing them by 825 basis points over 24 months since June 2023 and foreign investors have been buying rupee bonds despite slight depreciation in the local currency (Colombo/September 29/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a proposal to gazette the Attorney General-cleared amendments to the more than century-old Trust Ordinance and submit them to Parliament, the Cabinet Spokesman said, in a move to increase ownership transparency in trusts.

The Financial Action Task Force (FATF), the global watchdog for anti-money laundering and counter-terrorism financing (AML/CFT), has placed heavy emphasis on the transparency of legal arrangements,  such as trusts.

The move comes after trusts were seen as vulnerable to abuse as vehicles for hiding illicit gains, concealing ultimate beneficial ownership (UBO), and facilitating tax evasion or money laundering.

Sri Lanka has committed to the FATF for legal changes to align the law related to trusts with international standards to ensure that competent authorities have timely access to accurate, adequate, and up-to-date information on trust creators, trustees, and beneficiaries.

Cabinet Spokesman Nalinda Jayatissa said the latest cabinet deciusion was based on the observations submitted by the Task Force on Prevention of Money Laundering and Financing for Terrorism and a 2024 Cabinet approval to amend the Trust Ordinance No. 9 of 1917 including amendments proposed by the Financial Intelligence Unit of the Central Bank.

“The Attorney General has granted clearance for the Trust (Amendment) Draft Bill formulated by the Legal Draftsman,” Jayatissa, also the Minister of Health and Media told reporters at the weekly post-Cabinet media briefing.

“Therefore, the Cabinet of Ministers approved the resolution furnished by the Minister of Justice and National Integration to publish the said draft bill in the government gazette notification and submit it to Parliament for its concurrence.”

The amendments are seen as a key step in Sri Lanka’s efforts to overhaul its legal framework against money laundering and terrorism financing.

The move also comes as Sri Lanka undergoes a periodic assessment by the Asia/Pacific Group on Money Laundering (APG).

Passing these mutual evaluations is crucial to preventing Sri Lanka from being placed on the FATF “Grey List,” which harms international banking access, credit ratings, and foreign trade.

Closing statutory loopholes in century-old laws like the 1917 Trust Ordinance is a major prerequisite.

The proposed changes include statutory requirements to identify and register the ultimate beneficial owners, settlors, trustees, and beneficiaries of express trusts.

It will also ensure enhancing the mechanisms for legal registration of trusts and facilitating information-sharing among the FIU, law enforcement, and tax authorities.

It also imposes explicit obligations on trustees to obtain and hold accurate basic and beneficial ownership information, and to provide this information to financial institutions during customer due diligence (CDD). (Colombo/September 29/2026)