Israel says it has launched strikes on Iran’s nuclear sites as blasts heard across country

• Israel has carried out strikes on Iran’s nuclear programme, the IDF has said, with blasts heard in Tehran

• The strikes were part of Operation Rising Lion, Israel’s PM Benjamin Netanyahu said, adding Iran was a threat to “Israel’s very survival”

• Israel has declared a state of emergency, saying the country expected retaliation

• In Jerusalem, residents were woken by sirens followed by a phone alert

• The strikes targeted “Iran’s nuclear programme and other military targets”, an Israeli official has said

https://www.bbc.com/news/live/c93ydeqyq71t?utm_campaign=WhatsApp+June+2&utm_medium=bitly&utm_source=WhatsApp2025

*Judge temporarily bars Trump from deploying National Guard troops in Los Angeles*

• Judge orders National Guard back to California control

• Trump administration appeals judge’s order barring National Guard deployment

• Protests mostly peaceful, but Trump says city would be in flames without troops

https://www.reuters.com/world/us/marines-prepare-los-angeles-deployment-protests-spread-across-us-2025-06-12/

*US Deploying FAA, NTSB Team to Assist in Air India Crash Probe*

• Air India confirms 241 of 242 passengers and crew on board have died

• London-bound flight AI171 crashed shortly after takeoff from Ahmedabad

• US is deploying investigators to assist with the probe

• Crash marks first complete loss of a Boeing 787 Dreamliner

• Boeing shares have biggest drop in two months

https://www.bloomberg.com/news/live-blog/2025-06-12/air-india-crash-live-updates?utm_source=whatsapp&utm_medium=social&utm_content=business

Govt. and CBSL announce fresh relief for bank-linked SMEs amid recovery push

• CBSL issues directive on 9 June instructing banks to extend concessions to eligible SME borrowers

• Relief includes interest concessions, fresh lending and extended rescheduling deadlines

• SMEs who engaged banks for revival talks by 31 March eligible for support

• Deadline to finalise rescheduling agreements extended to 30 June

https://www.ft.lk/top-story/Govt-and-CBSL-announce-fresh-relief-for-bank-linked-SMEs-amid-recovery-push/26-777638

*COPA calls for audit on daily financial losses from train cancellations*

The Committee on Public Accounts has recommended an audit on the daily financial losses from train cancellations and called for a report on train delays, following concerns over reduced efficiency and inadequate management meetings at Sri Lanka Railways.

https://www.ft.lk/front-page/COPA-calls-for-audit-on-daily-financial-losses-from-train-cancellations/44-777642

*IRD’s new risk-based VAT system promises refunds in 15 days*

• The statutory maximum for issuing refunds is set at 45 days, however, the department’s internal target for compliant taxpayers is much faster

• IRD Commissioner stressed the objective is to provide you with an even better system in its place

https://www.dailymirror.lk/business-main/IRDs-new-risk-based-VAT-system-promises-refunds-in-15-days/245-311432

*Motor vehicle imports generate Rs. 149 b in taxes*

Sri Lanka Customs released nearly 50,000 motor vehicles between December 2024 and June 2025, generating Rs. 149.1 billion in tax revenue, reflecting strong progress toward the government's annual revenue targets following the lifting of the vehicle import ban.

https://www.themorning.lk/articles/BJhch1CBFyHZgqZaSRDQ

*Growth to slow to 3.5% amid crisis impact*

The World Bank projects Sri Lanka's economic growth to slow to 3.5% in 2025 due to lingering crisis impacts, structural challenges, and global uncertainties, warning that sustained recovery will hinge on reforms, debt management, and resilience to external shocks.

https://www.themorning.lk/articles/HQUygWH1Vrt36o9Ugptj

*BOND SCAM CASE: Financial Intelligence Unit ordered to appear in court*

The Colombo Magistrate's Court has ordered the Central Bank's Financial Intelligence Unit to appear on 11 December to explain its failure to submit account reports in the ongoing bond scam investigation involving Arjun Aloysius, Arjuna Mahendran, and others.

https://www.themorning.lk/articles/R8RbLmEqVXCDfv5QCNT9

*Ceylon Chamber welcomes ALSM inauguration*

The Association of Local Stationery Manufacturers (ALSM) was officially launched to unify Sri Lanka's stationery industry, aiming to promote collaboration, influence policy, and boost export potential while supporting national education and sustainable practices.

https://www.themorning.lk/articles/sWGWgmeRdU4Sx9EnmXbu

*Plans to utilize accreditation process well to boost export sector*

Trade Minister Wasantha Samarasighe emphasized that strengthening Sri Lanka's accreditation process through SLAB will boost exports, enhance global market access, and empower SMEs by ensuring product quality and international recognition.

https://www.dailynews.lk/2025/06/13/business/795385/plans-to-utilize-accreditation-process-well-to-boost-export-sector/

*LOLC AL-Falaah Wadi’ah Gold Storage Facility hits Rs. 3 Bn milestone*

LOLC Al-Falaah has become the first NBFI in Sri Lanka to launch the ethical Wadi’ah Gold Storage Facility, surpassing a Rs. 3 billion portfolio by offering transparent, Sharia-compliant gold-backed cash advances that promote financial inclusion and trust among underserved communities.

https://www.dailynews.lk/2025/06/13/business/795407/lolc-al-falaah-wadiah-gold-storage-facility-hits-rs-3-bn-milestone/

*Vidullanka breaks new ground with Sri Lanka’s first-ever listed Sukuk*

• Initiative marks milestone in ethical investing and capital market diversification

• Sukuk issuance approved by CSE and SEC, raising Rs. 500 m with subscriptions opening 17 June

• Vidullanka CEO Riyaz Sangani says it offers fixed and floating return options, with investors becoming partial owners of mini hydropower plant under Shariah-compliant lease structure

• Developed with input from regulatory bodies and international Shariah scholars, backed by Fitch A+(lka) rating and led by NDB Investment Bank and Adl Capital

• Move will catalyze growth in Sri Lanka’s Islamic capital markets, provide new funding model for corporates

https://www.ft.lk/front-page/Vidullanka-breaks-new-ground-with-Sri-Lanka-s-first-ever-listed-Sukuk/44-777639

President meets German counterpart in Berlin

President Anura Kumara Disanayake, who is currently on an official visit to the Federal Republic of Germany, was warmly received yesterday by German President Frank-Walter Steinmeier.

https://www.ft.lk/front-page/President-meets-German-counterpart-in-Berlin/44-777633

*Cabinet approves resumption of land acquisition for Central Expressway Phase IV*

• Compensation to be paid for previously acquired plots; new acquisitions proceed under Land Acquisition Act

• Phase IV stands at 73.2% completion; project aims to boost national connectivity

• Completion to improve access to Northern, North Central, Eastern and Central provinces

https://www.ft.lk/front-page/Cabinet-approves-resumption-of-land-acquisition-for-Central-Expressway-Phase-IV/44-777629

*Sri Lanka’s growth forecast to decelerate to 3.5% this year: WB*

The World Bank (WB) yesterday revealed that growth in Sri Lanka is forecast to decelerate to 3.5% this year, reflecting the scarring effects of the crisis, structural impediments to growth, and heightened global economic uncertainties.

https://www.ft.lk/front-page/Sri-Lanka-s-growth-forecast-to-decelerate-to-3-5-this-year-WB/44-777627

*World Bank cuts 2025 growth forecasts for 70% of economies*

Heightened trade tensions and policy uncertainty are expected to drive global growth down this year to its slowest pace since 2008 outside of outright global recessions, according to the World Bank’s latest Global Economic Prospects report. The turmoil has resulted in growth forecasts being cut in nearly 70% of all economies—across all regions and income groups.

https://www.ft.lk/front-page/World-Bank-cuts-2025-growth-forecasts-for-70-of-economies/44-777628

*Electricity tariffs up 15% from today*

• Tariff increase follows a comprehensive review of CEB request for an 18.3% hike

• PUCSL emphasises that decision aligns with cost-reflective pricing methodology approved by law

• Revision comes ahead of IMF First Deputy Managing Director’s visit next week

• Electricity pricing reform has been a central condition under Sri Lanka’s ongoing programme with IMF

https://www.dailymirror.lk/business-main/Electricity-tariffs-up-15-from-today/245-311318

*Sri Lanka set to outperform fiscal target for third year*

• Strong Q1 primary surplus and rising vehicle import duties drive continued overperformance

• Revenue collection agencies already exceeding targets, signaling robust economic momentum

https://www.themorning.lk/articles/6NSMvlkiPGhPATjbqXOh

*Indian visitors lead SL’s tourist arrivals*

The latest figures released by the Sri Lanka Tourism Development Authority (SLTDA) indicate that the country continues to attract a large number of tourists from India. The number of tourists who arrived in the country in the first five days of June stood at 21,293, the SLTDA stated.

https://www.themorning.lk/articles/YzrcM1KQOP5FSJ7soNQD

*NAVIGATING GLOBAL TRADE SHIFTS: Sri Lanka exports for global success*

Sri Lanka has weathered a relentless succession of economic shocks in recent years. The turmoil began with the constitutional crisis in 2018, followed by the tragic Easter Sunday attacks in 2019.

https://www.themorning.lk/articles/UO7zFpdDS71H5xZqlmZ5

*Asia sees ‘concerning’ rise in long payment delays: Report*

Companies across the Asia-Pacific region - and especially those in China - are becoming more cautious about selling on credit, as a turbulent global economy leads to a “concerning” rise in long payment delays, a new report has found.

https://www.themorning.lk/articles/bjJXmglwRF6DXiUhW71c

*Trump Says Again He’ll Set Unilateral Tariffs in Two Weeks*

President Donald Trump said he intended to send letters to trading partners in the next one to two weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies.

https://www.bloomberg.com/news/articles/2025-06-11/trump-says-he-will-set-unilateral-tariff-rates-within-two-weeks?srnd=homepage-asia&embedded-checkout=true

*Hela Apparel divests two subsidiaries for Rs. 2.7 b as part of ongoing restructuring*

It said this forms part of a broader turnaround strategy focused on structural simplification and performance improvement, with the objective of positioning its operations for recovery in the coming financial year and enhancing long-term competitiveness.

https://www.ft.lk/front-page/Hela-Apparel-divests-two-subsidiaries-for-Rs-2-7-b-as-part-of-ongoing-restructuring/44-777632

*LOFC announces mega Rs. 21 b share buy-back offer*

The LOLC Finance PLC (LOFC) Board of Directors in order to optimise its shareholder value while maintaining the company’s financial stability, has resolved to repurchase 3,519,065,138 shares at Rs. 6 each in a deal worth Rs. 21.1 billion.

https://www.ft.lk/front-page/LOFC-announces-mega-Rs-21-b-share-buy-back-offer/44-777634

Waiting Update

Public & Bank Holiday

Markets Closed in Sri Lanka

EDB outlines trade potential and ethical manufacturing strengths

• EDB Chairman Mangala Wijesinghe stressed on resilient and principled export economy ready to deepen ties with Chinese market

• Says China is ranked as Sri Lanka’s 10th largest export destination with value at $ 251.9 m in 2024

• Asserts significant untapped potential in both traditional and emerging product categories

• Highlights readiness to expand export footprint in China through range of high potential products including Ceylon tea, coconut-based products, processed food, fish and fishery products, spices, organic products, fruits and poultry products

https://www.ft.lk/business/EDB-outlines-trade-potential-and-ethical-manufacturing-strengths/34-777465

*Sarvodaya Development Finance to issue first-ever Sustainable Bonds to raise Rs. 2 b*

Sarvodaya Development Finance PLC is to issue Sri Lanka’s first-ever Sustainable Bonds to raise Rs. 2 billion. Its Board of Directors last week decided to issue up to 20 million Tier 2, rated, unsecured, subordinated, redeemable high-yield Sustainable Bonds at Rs. 100 each. The issue is subject to necessary regulatory approval.

https://www.ft.lk/front-page/Sarvodaya-Development-Finance-to-issue-first-ever-Sustainable-Bonds-to-raise-Rs-2-b/44-777498

*Sigiriya’s recognition as Lanka’s first sustainable tourism destination sets benchmark”*

Deputy Minister of Tourism Prof. Ruwan Ranasinghe said that Sigiriya’s recognition as Sri Lanka’s first sustainable tourism destination sets a benchmark for similar efforts across the country.

https://www.dailynews.lk/2025/06/09/business/792374/sigiriyas-recognition-as-lankas-first-sustainable-tourism-destination-sets-benchmark/

*Sri Lanka Tourism to launch Nation Branding Campaign*

Sri Lanka Tourism is set to launch its most awaited Nation Branding Campaign on June 26, 2025, in Colombo, bringing together key players from the public and private sectors to drive a unified vision for the country’s tourism sector.

https://www.dailynews.lk/2025/06/09/business/792377/sri-lanka-tourism-to-launch-nation-branding-campaign/

*SL aims for 50% ECT completion by end 2025*

• Construction of ECT fast-tracked after significant delays due to corruption

• $ 585 m project set for 2026 completion to enhance Colombo Port’s capacity

https://www.themorning.lk/articles/XIcT2nulIN2M1aNxOLzm

*Remittances up 18% y-o-y*

Sri Lanka’s year-on-year (y-o-y) remittances for the first five months of the year exceeded $ 3 billion in the first five months, up by 18.2% from the same period last year ($ 2.62 billion), data from the Central Bank of Sri Lanka (CBSL) shows.

https://www.themorning.lk/articles/XPdY4UJxVIP5i8UX06v3

*$ 530 m in vehicle import LCs opened*

• Govt. confirms no restrictions on vehicle types following import ban lift

• Vehicle imports align with State targets despite concerns over high prices

• IMF agreement rules out any tax cuts on vehicles for 2025

https://www.themorning.lk/articles/2Zh5KicUhzl4WhyAdlZg

*IPO momentum builds as CSE eyes derivatives market entry*

• 5-6 IPOs lined up as market hits record highs

• Foreign investor inflows remain subdued despite local rally

• CSE and India’s NCDEX shortlisted to launch SL’s first derivatives exchange

• New exchange will not be based in Port City: CSE chief

https://www.themorning.lk/articles/EoFY4OJSNhhOCYTHD1cU

*India and Sri Lanka eye dual listing to build ‘financial bridge’ between capital markets*

• Move would allow Sri Lankan firms to raise USD capital via India’s GIFT City for global expansion

• Initiative designed as a two-way partnership, with Sri Lanka also inviting Indian companies to list on the CSE

https://www.dailymirror.lk/print/business-main/India-and-Sri-Lanka-eye-dual-listing-to-build-financial-bridge-between-capital-markets/245-311038

*Tourism earnings climb to US$ 1.54bn in first five months*

May tourism earnings up by 6.5% YoY to US$ 164.1mn

https://www.dailymirror.lk/print/business-news/Tourism-earnings-climb-to-US-1-54bn-in-first-five-months/273-311034

*Sri Lanka repays foreign debt in budget to April 2025, current spending picks up*

ECONOMYNEXT – Foreign financing of Sri Lanka’s budget was negative up to April 2025 by 27.9 billion rupees, up from 7.4 billion last year, official data shows indicating that foreign debt was being repaid on a net basis again.

https://economynext.com/sri-lanka-repays-foreign-debt-in-budget-to-april-2025-current-spending-picks-up-224638/

*Sri Lanka’s Elephant House drinks distribution begins in India*

ECONOMYNEXT – Distribution of Elephant House beverages in India has started, under a partnership struck with Reliance Retail Ventures Limited, Ceylon Cold Stores, a unit of Sri Lanka’s John Keells Holdings said.

https://economynext.com/sri-lankas-elephant-house-drinks-distribution-begins-in-india-224527/

Sugar importers warn against tax hike, say consumers will pay the price

Sugar importers have urged President Anura Kumara Dissanayake not to raise the current Rs. 50/kg import tax, warning it would inflate prices, benefit large stockholders unfairly, harm small importers, and disrupt the market, as local sugar covers only 10% of demand and is unsuitable for industrial use.

https://www.ft.lk/front-page/Sugar-importers-warn-against-tax-hike-say-consumers-will-pay-the-price/44-777367

SLBFE faces CoPE scrutiny over Rs. 1 b in unauthorised spending, financial mismanagement

• CoPE uncovers SLBFE spending over Rs. 1.3 b on unapproved programs in 2024, bypassing Cabinet approval

• ‘Glocal Fair’ alone costs Rs. 1.259 b, far exceeding usual Rs. 2 m outreach allocation

• Trade stall procurement costs jump from Rs. 170,000 to Rs. 500,000 without clear explanation

• CoPE Chief accuses SLBFE of wasting funds on non-strategic, unplanned activities

• ‘Rataviruwo’ housing loan scheme fails; Rs. 100 m remains unpaid, with no beneficiary data

• Urges better use of SLBFE’s Rs. 18 b in fixed deposits

• Kuwait Compensation Fund worth Rs. 5.1 b remains underutilised; plans made for training and pensions

• Fraud surfaces in migrant worker registration, with agencies falsely claiming fee refunds

• Sub-committee to probe financial fraud by employment agencies

https://www.ft.lk/front-page/SLBFE-faces-CoPE-scrutiny-over-Rs-1-b-in-unauthorised-spending-financial-mismanagement/44-777369

DFCC Bank acts as Lead Arranger in $ 100 m loan for India’s Satin Creditcare

DFCC Bank PLC has joined as a Lead Arranger in a $100 million syndicated social loan for India’s Satin Creditcare Network Ltd., supporting financial inclusion and women’s empowerment through collateral-free microloans in rural and semi-urban areas.

https://www.ft.lk/front-page/DFCC-Bank-acts-as-Lead-Arranger-in-100-m-loan-forIndia-s-SatinCreditcare/44-777366

Salt Production: May take 3-4 months to normalise

Sri Lanka's salt production has dropped over 35% due to prolonged rains, but the Ministry of Trade assures no shortage as daily salt imports fill the gap, with normal production expected to resume in 3–4 months depending on weather conditions.

https://www.themorning.lk/articles/jniYXCKKekdPmgDOm1Ug

Sri Lanka spends Rs. 1.5 t on debt

• Over 20% of annual borrowing limit utilised for principal and interest payments by April

•  Domestic debt service accounts for a large portion; GDP projection for 2025 revised down

https://www.themorning.lk/articles/G04xkM1FzDRMDdDOjftl

Oil prices slip on a Saudi price cut and a US inventory build

Crude oil prices fell as traders reacted to rising U.S. fuel inventories, Saudi Arabia's price cuts to near four-year lows, and OPEC+ plans to boost output, despite ongoing expectations of a supply surplus that has yet to materialize.

https://www.themorning.lk/articles/iHD1yj6jbns77woWSUAj

Korean Ambassador explores investment opportunities at H’tota International Port

Korean Ambassador Miyon Lee visited Hambantota International Port in May to assess its operations and discuss potential investment opportunities, with HIP promoting the port as a strategic hub for Korean trade and manufacturing.

https://www.dailynews.lk/2025/06/06/business/791441/korean-ambassador-explores-investment-opportunities-at-htota-international-port/

Ceylon Chamber hosts EU Delegation

The Ceylon Chamber of Commerce hosted Poland’s Foreign Minister Radosław Sikorski and an EU delegation to strengthen EU-Sri Lanka trade and investment ties, focusing on key sectors like apparel, tourism, IT, and energy, while highlighting the private sector's role in sustainable economic collaboration.

https://www.dailynews.lk/2025/06/06/business/791434/ceylon-chamber-hosts-eu-delegation/

LOLC Group posts Rs. 41 b net profit; assets top Rs. 2 t mark

LOLC Holdings PLC reported a record after-tax profit of Rs. 41 billion for FY 2024/25—an 89% increase—driven by strong financial services performance, strategic global acquisitions, and expanding presence across over 25 countries and multiple sectors.

https://www.ft.lk/top-story/LOLC-Group-posts-Rs-41-b-net-profit-assets-top-Rs-2-t-mark/26-777362

United Motor Lanka returns to profitability after years of losses

United Motors Lanka PLC returned to profitability in FY2024/25 with a Rs. 73 million profit, driven by the lifting of Sri Lanka’s vehicle import ban, strong performance from its Dutch Lanka Trailers acquisition, and strategic shifts including local assembly, diversification, and plans to introduce electric vehicles.

https://www.themorning.lk/articles/60AEi9fJ1oXp5X3Ik2o6