The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a joint investment of up to $40 million in South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, Sri Lanka’s premier maritime gateway. 

The financing aims to strengthen the port’s competitiveness, resilience, and sustainability, reinforcing its role as South Asia’s leading transshipment hub.

The package includes a sustainability‑linked loan of up to $20 million from IFC, with $8.57 million mobilized through IFC’s Managed Co‑Lending Portfolio Program (MCPP), alongside a parallel green loan of up to $20 million from HSBC. 

Funds will be used to acquire advanced twin‑lift ship‑to‑shore cranes, boosting productivity, operational reliability, and energy efficiency to meet rising global trade demands.

This marks IFC’s first sustainability‑linked financing for infrastructure in Sri Lanka and its return to the port sector after two decades.

 IFC first partnered with SAGT in 1999 to finance Sri Lanka’s first public‑private partnership container terminal, helping establish Colombo as a regional transshipment hub. 

The new investment is expected to raise quay‑side productivity by at least 11 percent, expand capacity for both transshipment and domestic traffic, reduce carbon emissions, and create more opportunities for women in the sector.

Sri Lanka’s strategic location at the crossroads of major shipping routes makes the Port of Colombo vital to global trade, with nearly half of worldwide container traffic passing nearby. The port contributes around 2.5 percent of GDP, anchoring the country’s logistics and trade integration.

“At SAGT, we are committed to shaping the future of Sri Lanka’s maritime industry through continuous investment in world‑class infrastructure that drives productivity, enhances operational excellence, and reinforces the Port of Colombo’s position as a leading regional transshipment hub. As IFC’s first sustainability‑linked financing for an infrastructure project in Sri Lanka, this milestone underscores our commitment to pioneering sustainable growth and setting a new benchmark for the industry,” said Steen Knudsen, CEO, SAGT.

“When trade moves, economies follow. As IFC’s first sustainability‑linked financing for infrastructure in the country, this investment demonstrates how innovative financing can modernize essential economic assets, accelerate decarbonization and drive long‑term, sustainable growth,” saidGevorg Sargsyan, Country Manager, World Bank Group in Sri Lanka and Maldives.

“Our international reach and global expertise support us to play a prominent role in financing the transition in the sectors where it matters most. Given its strategic importance to Sri Lanka, HSBC is committed to supporting the maritime and logistics sector as it modernizes and transitions to a lower‑carbon future. Our parallel green loan of up to $20 million will enable SAGT to upgrade critical port equipment, improving productivity and reliability while reducing energy consumption and CO₂ emissions. This is an example of how sustainable finance can deliver practical, measurable outcomes,” said Amesh Dissanayake, Director Banking, HSBC Sri Lanka.

The investment aligns with the World Bank Group’s Country Partnership Framework for Sri Lanka, supporting the government’s ambition to strengthen the nation’s role as a regional logistics hub and deepen integration into global trade networks. (Newswire)

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HSBC has agreed to pay a A$35mn (US$24.6mn) penalty over its failure to protect Australians from scammers. 

The UK-based bank had been expected to contest legal action launched by the Australian Securities and Investments Commission in 2024 after the regulator alleged “widespread and systemic failures” to protect customers targeted by scammers. 

HSBC instead admitted to the “serious failures” that Asic had identified, which included allegations that its internal systems had inadequate controls and that it had breached its legal obligations in failing to respond to customer complaints in a timely manner. 

“This is one of the first cases of its kind globally and sends a clear message that protecting customers from scams is a core responsibility of banks,” said Sarah Court, chair of Asic. “HSBC’s alleged failures left customers more vulnerable to scams, tens of millions of dollars out of pocket and waiting months to find out what had happened to their money.” 

The bank apologised to customers and said it had paid A$28mn in refunds and compensation. “We are pleased to have reached an agreement to resolve the proceedings with Asic, which recognises our customer redress programme and the significant enhancements made to our fraud and scam prevention, detection and response,” said a company spokesperson. 

HSBC has been hit with a series of penalties from regulators in recent years. In January 2024, the Bank of England fined it £57.4mn for failing to protect customers’ deposits, and in 2021 it was handed a £64mn fine in the UK for weaknesses in its anti-money laundering controls. 

The spate of “spoofing” scams — in which customers were fooled into handing over banking details after receiving text messages purporting to be from HSBC — soared in 2023 and 2024 and cost some customers thousands of dollars. 

Reports of unauthorised HSBC transactions surged 380 per cent from the start of 2023 to the end of 2024, largely driven by impersonation scams, according to Asic. 

The regulator cited examples including a 51-year-old dental technician who lost A$47,000 — almost her entire savings — and a couple in their fifties who lost A$48,000 when the money was transferred out of their home loan. 

Court said affected customers had reported distress, guilt and panic after being scammed and some had to borrow money or take on extra work to keep up with loan payments. Some were also locked out of their accounts after reporting scams. (Financial Times)

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HSBC Bank’s consumer banking operations in Sri Lanka officially come to an end today (30), following the completion of the transfer of its retail banking division to Nations Trust Bank (NTB).

The Hongkong and Shanghai Banking Corporation (HSBC) received approval from the Central Bank of Sri Lanka in December 2025 to hand over its consumer banking operations to NTB. A Binding Sale and Purchase Agreement signed between the two banks in September 2025 has now been finalized.

From May 1, 2026, HSBC’s premier banking customers, including credit card holders and personal loan clients, amounting to approximately 200,000 accounts, will officially transition to NTB.

HSBC has issued an important notice to customers, stating that branches, express banking centres, and ATMs would close at 3 p.m. today, while accounts, debit and credit cards, and digital banking services would remain accessible until 7 p.m. 

After that, all HSBC cards and online platforms will cease to operate. The bank further advised customers to plan ahead for a temporary service interruption during the final transition, as systems will be unavailable until NTB brings them back online.

“HSBC Sri Lanka Facebook page will be closed today. We sincerely thank you for the trust you have placed in HSBC over the years and for being part of our enriching online community. It has been an honour to serve you, and we wish you and your loved ones the very best as you move forward,” HSBC said, confirming the closure of its official Sri Lanka Facebook page. (Newswire)

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Opposition MP Harsha de Silva has accused the JVP/NPP government and officials at the state-owned petroleum distributor of attempting to misrepresent remarks made by HSBC’s CEO regarding oil prices, calling their actions “utterly shameful.”

De Silva said the government wrongly claimed the CEO had suggested Sri Lanka paid USD 286 per barrel of crude oil, even threatening legal action against HSBC. 

He clarified that the executive had in fact referred to the refined oil “door-to-door” price, not crude, and was merely analyzing the fallout of the ongoing Middle East war.

“The man clearly referred to refined oil and door-to-door price, never crude, as accused by the government,” de Silva wrote on X, adding that the government’s attempt to “teach the man a lesson” had backfired.

His comments refer to the CPC’s response to claims by Georges Elhedery, CEO of HSBC, stating that oil prices for Asian buyers can be significantly higher than Brent crude benchmarks due to added costs such as insurance, shipping and supply constraints.

According to a report by Middle East Eye, speaking at an investment forum in Hong Kong, Elhedery said benchmark oil prices in Western markets often fail to reflect the actual costs faced by buyers in Asia.

“What worries me is not the headlines. Oil headline is above $100, $110,” he said, according to a transcript cited by Bloomberg. “Realistically, if you are now trying to get oil from the Middle East, you may be paying $140, $150.” He added that the highest figure he had heard was $286 in Sri Lanka.

Responding to the statement, the CPC rejected claims that Sri Lanka paid $286 per barrel for crude oil, adding that it intends to pursue legal action over reports it described as inaccurate.

Issuing a statement, the CPC Chairman said the corporation imports crude oil solely for the Sapugaskanda refinery, but it had neither paid nor agreed to pay $286 per barrel for any crude oil shipment it has procured or contracted.

The CPC further rejected what it described as false statements aimed at damaging the corporation’s reputation, warning that it intends to pursue legal action against parties responsible for spreading misinformation. (Newswire)

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Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has clarified that crude oil was never purchased at the price of USD 286 per barrel during imports to Sri Lanka, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.

Speaking at a media briefing held today (17), he commented on media reports surrounding a recent statement made by the CEO of HSBC and clarified that at no time was crude oil bought at such a price. 

He explained that after the Middle East conflict began, a crude oil shipment arrived in the country on March 11, priced at USD 66.99 per barrel.

He further noted that another crude oil shipment was scheduled to arrive today (17), priced at USD 71.99 per barrel.

Accordingly, he stated that crude oil was never purchased at the reported figure, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.

“I think the issue has arisen because of a statement made by the CEO of HSBC. Either it was misinterpreted and reported incorrectly by the media, or it was deliberately publicized. When we checked, HSBC had issued a media release saying fuel purchases had been made. They did not say crude oil. They said fuel. That is correct. Therefore, this kind of publicity creates unnecessary confusion in the country,” he said.

Rajakaruna explained that, due to the Middle East crisis, diesel prices rose sharply, forcing the CPC to purchase diesel at prices ranging from USD 285.28 to USD 288.06 per barrel in shipments that arrived in the country on March 31 and April 7.

“Diesel prices in the world market have risen sharply. From what we purchased, the flat average was around USD 242 per barrel. Premium values went up by 48 to 50 dollars, which increased the price further. If we had not purchased at those rates, the country would have faced a fuel shortage,” he added. 

Rajakaruna stressed that while crude oil prices remained far lower, the surge in diesel prices was unavoidable, and the CPC had to procure supplies at higher rates to ensure uninterrupted fuel availability in the country. (Newswire)

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Sri Lanka may have purchased oil at around $286 per barrel amid the Middle East conflict, according to HSBC Chief Georges Elhedery, who said oil prices can be significantly higher than Brent crude benchmarks in Asia when insurance, shipping, and supply scarcity are taken into account.

According to a report by the Middle East Eye, speaking at an investment forum in Hong Kong on Tuesday, Elhedery highlighted how benchmark oil prices in the West fail to reflect the actual costs faced by buyers in parts of Asia.

“What worries me is not the headlines. Oil headline is above $100, $110,” he said, according to a transcript obtained by Bloomberg. “Realistically, if you are now trying to get oil from the Middle East, you may be paying $140, $150.” He added that the highest figure he had heard was $286 in Sri Lanka.

The disparity stems from the ongoing U.S.–Israeli war on Iran, which has disrupted global energy flows. Iran has taken control of the Strait of Hormuz, blocking Gulf exports, while the U.S. has responded with its own blockade against Iranian oil. As a result, exports through the Strait have slowed to a trickle.

Saudi Arabia has emerged as the region’s top exporter, sending roughly five million barrels per day from its Red Sea port of Yanbu. Yet even the Omani benchmark, trading at around $100 per barrel, does not capture the full burden on Asian buyers.

Shipping rates have surged, with costs from the Red Sea adding $30–40 per barrel, while insurance premiums have jumped from 0.25 per cent to 5 per cent.

The crisis has left countries like Sri Lanka facing extreme price shocks, underscoring the vulnerability of smaller economies to geopolitical conflicts. 

Iran has further warned it could close the Red Sea unless the U.S. lifts its blockade, raising fears of deeper disruptions to global energy supply.

Full report:  https://www.middleeasteye.net/news/sri-lanka-buyer-paid-286-barrel-oil-actual-prices-world-diverge-markets (Newswire/ Middle East Eye) 

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A pioneering forest restoration initiative has taken root in the Siyabalagaswewa Forest and its surrounding landscape, located in the Thuppitiyawa Grama Niladhari (GN) Division of the Mahawilachchiya Divisional Secretariat, Anuradhapura District. The initiative exemplifies an effective Public-Private-People partnership focused on advancing Sri Lanka’s national and global environmental commitments, particularly those under the 30×30 biodiversity targets, which aim to protect 30% of terrestrial and marine ecosystems by 2030.A remarkable success of the initiative is the initiation of the first step toward gazetting the restored degraded forest, marked by the establishment of boundary posts, laying the groundwork for long-term legal protection and conservation.

This initiative, which emerged as a pilot model of collaborative environmental stewardship through Nature-based Solutions (NbS), is being implemented under Project CORE: Climate-Smart Opportunities through Restoration and Education, led by HSBC Sri Lanka in partnership with the International Union for Conservation of Nature (IUCN) and the Department of Forest Conservation.

Since its launch in 2021, Project CORE has piloted NbS for Forest Landscape Restoration (FLR) interventions across the Kimbulwewa Cascade landscape in Thuppitiyawa GN Division. These interventions target degraded lands and community areas, aiming to enhance biodiversity, improve community livelihoods, build climate resilience, and sequester carbon in one of the most climate-vulnerable regions in Sri Lanka’s Dry Zone.

At the heart of this initiative was the intensive reforestation of the degraded Siyabalagaswewa Forest, covering approximately 35 hectares of land under the Forest Department. An additional 100 hectares of adjoining community land is being restored through regenerative agricultural practices such as food forest gardens, silvopastoral systems, live fencing, and avenue plantations. Moreover, the Mahawilachchiya Divisional Secretariat and the Department of Animal Production and Health have played pivotal roles in these community-based conservation efforts by collaborating closely with the project team.

A significant milestone has been the installation of boundary posts, an initial step toward the legal declaration of the restored Siyabalagaswewa Forest as a Reserved Forest, with technical support from the Forest Department who will initiate the gazetting process, which officially establishes a protected area, in the near future. This will help ensure long-term protection of the area while aligning with both national and global conservation targets.

Key interventions under Project CORE include:

• Establishment of a community-based plant nursery, now managed by the Forest Department with continued community involvement
• Development of Food Forest Gardens, benefiting 26 families through diverse fruit tree cultivation and water and soil conservation practices
• Implementation of live fencing models, aiding 73 households and contributing to human-elephant conflict mitigation
• Promotion of climate-smart dairy systems and backyard poultry through integrated silvopastoral models that support nutrition, income generation, and biodiversity
• Support for soil conservation and small agro-enterprises, including fruit plant nurseries and brooding facilities
• Establishment of a community-based organisation named ‘Diriya Shakthi,’ which helped to engage the communities actively in restoration efforts and ensure sustainability beyond the project’s duration
• Engagement of youth through research and awareness programmes, including the creation of a butterfly garden at Ashoka Vidyalaya, Siyabalagaswewa

This is the first pilot NbS for FLR initiative in Sri Lanka’s Dry Zone aligned with the IUCN Global Standards for Nature-based Solutions to ensure scientific integrity and long-term community ownership.

HSBC Sri Lanka, the funding partner, has gone beyond a financial contribution. HSBC staff have actively participated in tree planting campaigns, school awareness programmes, and recognition events for community champions, demonstrating a strong model of inclusive and participatory conservation delivering over 2000 volunteer hours

HSBC Sri Lanka CEO, Mark Surgenor stated, “The project is one we are delighted to support, showcasing the power of a well functioning Public Private People partnership bringing a nature based sustainability solution to the dry zone. More than just restoring the environment, this project has brought valuable knowledge and experiences to enable more suitable yields to be generated without degrading the land.”

He added. “Also, our partnership with IUCN has brought broader benefits to the wider local communities which is truly encouraging.This collaborative effort has brought together our employees, local authorities, and community members to take meaningful actions to our environment.We are proud to say that our colleagues have contributed over 2,000 volunteer hours since the project began in 2021.We hope this will inspire others to take similar steps to build education to support climate resilience across the country.”

The Siyabalagaswewa Forest restoration reflects the power of partnerships in action, where community leadership, government stewardship, and private sector commitment converge for long-term ecological and social impact.

As Sri Lanka accelerates its efforts to meet the 30×30 conservation targets within the Kunming-Montreal Global Biodiversity Framework (GBF), Project CORE provides a replicable and scalable model for integrating climate adaptation and biodiversity conservation while addressing societal challenges through collaborative, locally appropriate, innovative solutions.

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