BIZ

“Many fall prey to pyramid schemes due to financial illiteracy”

Published

4 months ago

March 24, 2025

editor

Governor of the Central Bank of Sri Lanka (CBSL) – Dr. Nandalal Weerasinghe has stated that the majority of people in this country who fall prey to pyramid schemes, lack financial literacy.

Dr. Nandala made these comments while participating in a recent public awareness program on new technological services provided by banks and financial institutions registered with the CBSL.

“Even though people have money in their hands, there is a higher risk of that money being misused and falling prey to fraud. This is mainly due to a lack of financial literacy and knowledge. In particular, we see online advertisements offering discounts and sending promotional emails. The newest trend is advertising to collect funds while claiming to grow different crops. They say if you invest in cultivating trees, fruit or wallapatta (agarwood), you will get huge returns. Taking advantage of legal loopholes, such schemes will fraudulently take hold of your money and deposit it in pyramid schemes or unauthorized savings, leading to financial losses. So whenever you hear something like this, the first question should be—how is that even possible?”

Dr. Weerasinghe further noted that the CBSL is actively implementing programs aimed at improving public financial literacy.

“One of the main reasons for the negative aspects of digitalization taking place is the lack of financial and economic literacy. This leads to making wrong decisions. Therefore, the CBSL Is implementing a special programme on financial literacy while also promoting digitalization,” he said.

BIZ

UK’s relaxed trade rules to boost SL exports

Published

3 hours ago

July 11, 2025

editor

The Government of the United Kingdom (UK) has unveiled a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods.

New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free, even when using components from across Asia and Africa.

These changes are expected to be in place by early 2026.

This move strengthens Sri Lanka’s position in its second-largest apparel market, supporting exports, jobs, and economic growth.

The British High Commissioner to Sri Lanka, Andrew Patrick, said: “This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

“We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity for both our countries.”

BIZ

Milk tea price upped by Rs. 10

Published

4 hours ago

July 11, 2025

editor

The All Island Canteen and Restaurant Owners’ Association has announced a Rs. 10 increase in the price of a cup of milk tea.

Association President Harshana Rukshan stated that the decision was made in response to the recent rise in the price of imported milk powder.

BIZ

China to drift away from SL with Mazagon Dock’s purchase of CDPLC?

Published

23 hours ago

July 10, 2025

editor

International relations researcher – Dr. Hasith Kandaudahewa says there is a visible trend of China gradually distancing itself from Sri Lanka since 2023, a process that could accelerate with India’s Mazagon Dock Shipbuilders Ltd. acquiring a majority stake in Colombo Dockyard PLC (CDPLC).

Speaking to the BBC Sinhala Service, Dr. Kandaudahewa has noted that CDPLC’s reputation in global shipbuilding makes the acquisition strategically significant for India, especially when viewed alongside India’s newly opened Vizhinjam International Seaport in Kerala.

This shows that India is steadily strengthening its port infrastructure across the Indo-Pacific and increasing its strategic influence in the Indian Ocean, he has said.

Dr. Kandaudahewa has further pointed out that with China already holding Hambantota Port on a 99-year lease, India’s move to secure the majority stake in CDPLC signals a clear challenge to the Chinese presence in Sri Lanka.

“While China is holding the Hambantota Port on a 99-year lease, India is also trying to show its dominance in Sri Lanka. India is trying to pose a challenge to China by securing a majority stake in the CDPLC. Why, because these two countries are staking their claim to two of the most strategic locations in the same country. Similarly, we are seeing China gradually distancing from Sri Lanka from 2023. The CDPLC seems to be accelerating it even further.”

“In the long term, India is investing in renewable energy programs in Sri Lanka. Even though India may not gain much profit from this, it is trying to further retain Sri Lanka as their closest neighbor.”

Mazagon Dock deal confirmed

The Colombo Stock Exchange has already confirmed that Mazagon Dock Shipbuilders Ltd, a public sector undertaking (PSU) of the Government of India, will acquire a 51% stake in CDPLC currently held by Japan’s Onomichi Dockyard Co. Ltd for USD 52.96 million.

The deal is to be completed in the next 06 months.

Mazagon Dock Shipbuilders Limited, Mumbai, an ISO 9001: 2015 Company is one of the leading shipbuilding yard in India.

Since it was taken over by the Indian government in 1960, Mazagon Dock MDL has built a total 805 vessels including 30 warships, from advanced destroyers to missile boats and 8 submarines.