Sri Lanka Central Bank warns on illegal plantation schemes, urges media caution on ads

Thursday July 23, 2026 11:27 am ECONOMYNEXT — The Central Bank of Sri Lanka has warned the public against investing in informal plantation schemes promising high returns, while cautioning media organizations against broadcasting advertisements that mislead citizens into illegal…

Thursday July 23, 2026 11:27 am

ECONOMYNEXT — The Central Bank of Sri Lanka has warned the public against investing in informal plantation schemes promising high returns, while cautioning media organizations against broadcasting advertisements that mislead citizens into illegal deposit-taking ventures. Central Bank Governor Nandalal Weerasinghe said non-bank supervision officials have stepped up action following a rise in plantation and forestry companies soliciting public funds illegally under the guise of cultivation projects. Promising monthly payouts and huge returns at the end of a project constitutes unauthorized deposit-taking, which is illegal under Sri Lankan law. “If they come asking for money from the public, saying, ‘Invest in this, we will pay a monthly sum and a large return at the end,’ then there is a problem,” Weerasinghe said. The Governor urged investors who have already placed money in such operations to request their funds back immediately to test the legitimacy of the businesses. If companies fail or refuse to return the money, investors should lodge a formal complaint with the Central Bank so officials can investigate and initiate legal proceedings against potential pyramid schemes. Central Bank officials also raised concerns over media outlets carrying scrolling banners and half-page advertisements for unauthorized financial schemes, often alongside news reports warning against them. Weerasinghe noted that while these advertisements frame themselves as general invitations to join cultivation projects rather than explicit deposit requests, they rely on telephone numbers at the bottom to solicit illegal deposits once callers reach out. “The whole purpose of putting that phone number at the bottom is to make the connection through it. After that, they go after the people to get them to deposit money,” Weerasinghe said. Central Bank Deputy Governor K. G. P. Sirikumara reminded media institutions that carrying advertisements for illegal deposit solicitors carries serious legal implications under the country’s banking laws. “A direct responsibility has been assigned to media institutions to verify… whether they hold approval or a valid license from the Central Bank for that purpose,” Sirikumara said. The Central Bank appealed to all TV channels and print media outlets to ethically verify whether advertisers possess valid Central Bank licenses before accepting ads that solicit public deposits. (Colombo/Jul23/2026)

Friday July 24, 2026 6:28 pm

ECONOMYNEXT – The Exporters Association of Sri Lanka (EASL) has welcomed the decision of the United States Trade Representative (USTR) to apply a 10% tariff on imports from Sri Lanka under the recently announced Section 301 measures. “This is a significant and welcome development for Sri Lanka’s export sector, particularly in light of the substantially higher tariff rates that had been proposed previously. The final outcome helps preserve the competitiveness of Sri Lankan products in one of our most important export markets,” EASL said. This decision places Sri Lanka on an equal footing with several key competitors, it said, including Bangladesh, India, Pakistan, Indonesia, Malaysia, and Cambodia. “Maintaining tariff parity is critically important in highly competitive global markets where buyers make sourcing decisions based on very narrow cost differences.” Even a tariff differential of 2.5 percentage points can have a significant impact on Sri Lanka’s export competitiveness, particularly in sectors such as apparel, where margins are relatively thin and international buyers closely compare landed costs across competing sourcing destinations. The current decision therefore provides much-needed certainty and helps ensure that Sri Lankan exporters remain competitive in the US market. EASL said this was an opportunity to strengthen the long-term trade relationship between Sri Lanka and the United States. The recent developments also demonstrate that international trade policies can evolve rapidly, creating uncertainty for exporters. “Sri Lanka should proactively pursue a comprehensive bilateral trade arrangement with the United States, with the objective of securing greater certainty, improving market access, and fostering stronger economic cooperation for the benefit of both countries.” (Colombo/Jul24/2026)

Friday July 24, 2026 6:04 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 336.20/35 to the US dollar in the spot market on Friday, from 336.20/30 the previous day, while bond yields edged up slightly, dealers said. A bond maturing on 15.09.2027 closed flat at 10.30/40 percent. A bond maturing on 15.12.2029 closed flat at 11.25/30 percent. A bond maturing on 01.08.2030 closed at 11.58/65 percent, up from 11.55/60 percent. A bond maturing on 15.10.2030 closed at 11.60/68 percent, up from 11.60/65 percent. A bond maturing on 15.01.2033 closed at 12.15/25 percent. A bond maturing on 01.11.2033 closed at 12.20/30 percent, up from 12.00/20 percent. A bond maturing on 15.06.2034 closed at 12.25/35 percent, up from 12.15/30 percent. A bond maturing on 01.07.2037 closed at 12.70/75 percent, up from 12.65/75 percent. (Colombo/Jul24/2026)

Friday July 24, 2026 4:38 pm

ECONOMYNEXT – The Ceylon Chamber of Commerce said it welcomes the reduction of the labour-related tariff imposed on Sri Lankan exports to the United States, from 12.5% to 10 percent. “This outcome is an encouraging step forward for Sri Lanka’s export sector and reflects the value of constructive dialogue, evidence-based advocacy, and proactive engagement with international trading partners.” The reduction will provide some relief to exporters, navigating a highly competitive and uncertain global marketplace while supporting Sri Lanka’s broader efforts to maintain and expand market access, the chamber said. The chamber had expressed concern regarding the potential impact of the proposed labour-related tariff measures on Sri Lanka’s trade competitiveness and urged urgent engagement with relevant stakeholders. “While welcoming this encouraging outcome, the Chamber emphasizes the importance of continuing constructive dialogue with the United States to secure a longer-term framework that minimizes uncertainty for exporters and promotes stable trade relations.” The chamber said it would collaborate with the government and other stakeholders to support these efforts and further enhance Sri Lanka’s export competitiveness. (Colombo/Jul24/2026)

Friday July 24, 2026 4:34 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.13 percent. The ASPI was down 26.63 points at 21,172.74, while the more liquid S&P SL20 was down 0.06 percent, or 3.31 points, at 5,942.56. Shares came down 232.67 points over the week. Positive contributors to the ASPI were LOLC Holdings (up 3.24 percent at 493.25 rupees), LOLC Finance (up 10.20 percent at 5.40 rupees), Melstacorp (up 0.56 percent at 180.50 rupees), and Carson Cumberbatch (up 1.90 percent at 725.00 rupees). Hatton National Bank (down 0.77 percent at 385.00 rupees), Ceylinco Insurance (down 1.68 percent at 2,851.25 rupees), and Ceylon Grain Elevators (down 2.19 percent at 470.00 rupees) were top negative contributors. Market turnover was 2.45 billion rupees. Retailing led turnover with 1.036 billion rupees. The Colombo Stock Exchange imposed penalties on each director of Anilana Hotels and Properties for failing to rectify its non-compliance regarding the delayed submission of its interim financial statements for the quarter ended September 30, 2025, within the required three-month period after being placed on the Watch List. (Colombo/July24/2026)

Friday July 24, 2026 3:00 pm

ECONOMYNEXT — Sri Lanka is advancing plans to restructure the governance of its superannuation funds by studying international models to introduce a tripartite management structure, though officials emphasized that the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) will remain distinct financial entities. Addressing Parliament regarding the proposed reforms, Deputy Minister of Labour Mahinda Jayasinghe stressed that any administrative integration will not merge the core financial pools of the two social security mechanisms. “However, even if managed as a single entity under a tripartite governance structure—and this must be understood clearly—EPF and ETF will remain as two separate funds,” Jayasinghe said. The government has appointed a committee comprising officials from the Labour Ministry, the Treasury, the Central Bank, and the ETF Board to evaluate the reforms. The panel has been tasked with delivering a report within three months, detailing recommendations for structural adjustments and exploring a potential administrative merger to streamline operations while keeping fund assets separate. The Deputy Minister explained that incorporating worker and employer representatives into fund governance is necessary to fulfill Sri Lanka’s international commitments on social security management. He noted that established global guidelines require direct input from all primary stakeholders rather than leaving fund management solely to state administrators. “In accordance with Convention C144 (Convention 144) ratified by Sri Lanka, it is essential to obtain government, employer, and employee participation in managing such social security funds,” Jayasinghe said. To design the framework, authorities are studying governance structures across India, Malaysia, South Korea, Singapore, Maldives, Germany, Kenya, and OECD countries. Alongside structural reforms, the Labour Department is upgrading its technological infrastructure, including a “Labour Community Platform” to integrate data systems between the Labour Department and the Central Bank. The single service window model seeks to enhance cost-effectiveness, boost transparency based on ISSA standards, and improve member benefits such as housing loans and medical assistance. “After the committee’s recommendations arrive… we will direct this to our tripartite body, the NLAC, which includes trade unions, employers, and our representatives,” Jayasinghe said, responding to public and opposition inquiries regarding the committee’s work. Reassuring fund members on the ultimate objective of the legislative initiative, Jayasinghe added that the proposed structure is not intended to repeat past damages to the funds, emphasizing that the committee was appointed specifically to gather proposals aimed at protecting them. (Colombo/Jul24/2026)

Friday July 24, 2026 2:35 pm

ECONOMYNEXT – Sri Lanka’s Ministry of Finance, Planning and Economic Development said the United States’ decision to lower its proposed additional Section 301 tariff on Sri Lankan goods to 10 percent from 12.5 percent will deliver positive outcomes for local exporters. The revised rate follows Sri Lanka’s recent policy move to impose an import ban on goods produced using forced labor. The lower duty gives the island nation a competitive edge over non-compliant economies facing the default 12.5 percent tariff. “This situation creates a positive outcome for exporters and reflects Sri Lanka’s continuous commitment to promoting fair trade, responsible business practices, and internationally accepted labor standards,” the Ministry said. The Ministry added that the revised tariff structure strengthens Sri Lanka’s positioning in its primary export market while signaling economic stability to foreign buyers and investors. “This revision enhances the competitiveness of Sri Lankan exports in the US market and serves as a positive signal to investors and buyers regarding Sri Lanka’s commitment to sustainable economic reforms,” the Ministry said. The move comes after Washington initiated Section 301 investigations into 60 economies over forced labor practices. While baseline duties mean effective overall tariffs on Sri Lankan apparel will still average around 26.5 percent, the lowered 10 percent addition helps mitigate greater potential trade harm. The US remains Sri Lanka’s largest single export destination, accounting for over 20 percent of total merchandise shipments. (Colombo/Jul24/2026)