By: Staff Writer
March 05, Colombo (LNW): A $40.1 million land acquisition inside Port City Colombo is being viewed by analysts as more than a property transaction it may represent a turning point in Sri Lanka’s effort to reposition itself as a regional investment destination.
Home Lands, a three-time “Best Developer Sri Lanka” award winner at the PropertyGuru Asia Property Awards, has secured over three acres within the Central Park District of the master-planned city. The deal ranks among the largest single commitments by a purely domestic developer in the project to date.
Unlike several earlier investments in Port City that involved foreign partnerships, this initiative is fully independent. That distinction matters in an economy working to restore confidence among lenders and international markets. By deploying substantial capital without external backing, the company signals belief in regulatory stability, long-term demand, and macroeconomic normalization.
The development blueprint outlines a $300 million mixed-use ultra-luxury complex featuring twin 40-storey towers and more than 600 residential units. Designed as a forest-inspired vertical retreat, the project aims to differentiate Colombo within South Asia’s competitive real estate landscape.
For Sri Lanka’s economy, the stakes extend well beyond high-end housing. Large-scale developments inside the SEZ operate in foreign currency, potentially attracting offshore buyers and diaspora investors. This could ease pressure on the rupee by channeling new inflows into construction, services, and ancillary industries.
Port City Colombo itself was conceived as a financial and business district built to international standards, with advanced infrastructure and a regulatory framework distinct from the mainland. As foundational works conclude, attention is shifting from land reclamation to value-generating vertical construction. Home Lands’ entry into this phase suggests growing private-sector readiness to move from speculation to execution.
Employment generation will likely be one immediate impact. From architects and engineers to logistics operators and hospitality planners, a $300 million build-out can sustain thousands of direct and indirect jobs. In a country where youth unemployment and underemployment remain pressing concerns, this could provide meaningful economic spillover.
However, questions persist. Ultra-luxury positioning narrows the buyer pool, making the project dependent on sustained investor appetite and macro stability. Any external shocks global rate hikes, geopolitical tensions, or domestic policy reversals could test demand.
However the symbolism is undeniable. At a time when Sri Lanka is rebuilding its economic narrative, a homegrown firm stepping forward with a high-risk, high-visibility commitment sends a powerful signal. Whether this twin-tower venture becomes a catalyst for broader capital inflows or a cautionary tale will depend on execution, governance, and sustained investor trust.
For now, Colombo’s skyline and Sri Lanka’s economic ambitions stand on the cusp of transformation.
Twin-Tower Gamble Signals Turning Point for Colombo Economy
How the Torpedoing of Iran’s IRIS Dena Near Sri Lanka Could Reshape the Island’s Strategic Future
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By: Isuru Parakrama
March 05, Colombo (LNW): The torpedoing of the Iranian warship IRIS Dena in the Indian Ocean near Sri Lanka represents a dramatic extension of Middle Eastern hostilities into the wider Indo-Pacific. Although the attack did not occur within Sri Lanka’s territorial waters, the incident has immediate and potentially far-reaching implications for the island’s security posture, diplomatic balancing, and economic stability.
According to available details, a United States submarine unleashed the torpedo assault against the Iranian naval frigate in international waters near Sri Lanka’s southern coastline, not far from Galle. The attack resulted in heavy casualties, leaving numerous Iranian sailors dead or missing. In the aftermath, the Sri Lanka Navy launched rescue operations, saving 32 personnel and recovering dozens of bodies from the sea.
The rescue mission was conducted under the framework of the 1979 International Convention on Maritime Search and Rescue, which obliges states to assist vessels in distress regardless of political circumstances.
While Sri Lanka’s role in the incident has been limited to humanitarian rescue efforts, the event nevertheless places the country in an uncomfortable geopolitical spotlight. The Indian Ocean sea lanes around Sri Lanka have long been among the world’s most heavily travelled maritime corridors, linking energy routes from the Middle East with the manufacturing centres of East Asia.
The sudden appearance of a direct naval confrontation between the United States and Iran in waters so close to the island underscores how rapidly distant geopolitical rivalries can spill into Sri Lanka’s immediate neighbourhood.
From a security perspective, the incident highlights the growing militarisation of the Indian Ocean. Sri Lanka now faces the reality that its surrounding waters could increasingly become an operational theatre for major-power confrontations. In response, policymakers in Colombo may be compelled to strengthen maritime surveillance systems, expand early-warning capabilities, and improve coordination with regional naval forces.
Such measures would be intended not only to monitor foreign military activity but also to prevent accidental escalation or misidentification incidents near Sri Lankan waters.
Diplomatically, the situation poses a delicate balancing act. Sri Lanka has historically pursued a policy of neutrality, seeking to maintain constructive relationships with Western powers, Middle Eastern nations, and emerging Asian partners simultaneously.
In its official response, Colombo has emphasised its humanitarian obligations and adherence to international law, deliberately avoiding direct criticism of either the United States or Iran. This cautious tone appears designed to prevent the island from becoming entangled in the political fallout of the attack.
Nevertheless, the diplomatic risks remain significant. Iran may interpret Sri Lanka’s restrained response as tacit acceptance of U.S. military activity near its maritime approaches. Such perceptions could complicate bilateral relations with Tehran and potentially influence Sri Lanka’s broader engagement with countries aligned with Iran.
At the same time, Colombo must consider the sensitivities of other major powers with strategic interests in the Indian Ocean, including China and India, both of which closely monitor developments in the region’s maritime security landscape.
Beyond geopolitics, the economic implications could be profound. Even prior to the sinking of the Dena, Sri Lankan authorities and the Central Bank had warned that escalating conflict in the Middle East might disrupt global shipping routes, increase war-risk insurance premiums, and drive up freight costs.
The attack near Sri Lanka provides tangible evidence that naval hostilities can extend far beyond the Persian Gulf, potentially making insurers and shipping companies view the entire Indian Ocean basin as a higher-risk environment.
For Sri Lanka, whose economy depends heavily on maritime trade, such developments could prove damaging. The country’s export sectors—particularly apparel and time-sensitive goods such as perishables—rely on stable shipping schedules and predictable logistics costs. If freight rates climb or shipping routes become more volatile, Sri Lankan exporters could lose their competitive advantage in global markets.
Additional economic pressures may also emerge from energy markets and labour migration patterns. Sri Lanka imports the vast majority of its petroleum, meaning any prolonged rise in global oil prices triggered by Middle Eastern instability would place further strain on the country’s fragile economic recovery.
Meanwhile, millions of Sri Lankan expatriate workers in the Gulf region send remittances that form a critical pillar of the national economy. Any disruption to regional stability in the Middle East could threaten these income flows.
In strategic terms, the fact that a U.S. submarine was able to conduct a combat torpedo strike on an Iranian naval vessel so close to Sri Lanka’s coastline sends a powerful signal about the evolving nature of the Indo-Pacific security environment. The region is increasingly being treated by global powers as an extension of wider geopolitical rivalries rather than a neutral maritime transit zone.
This reality may eventually force Sri Lanka to reconsider aspects of its long-standing foreign policy. Strengthening security cooperation with regional partners—particularly India and other Indo-Pacific states—could become a priority. At the same time, Colombo may re-examine the strategic implications of foreign involvement in its ports and maritime infrastructure, including politically sensitive projects linked to Hambantota.
Ultimately, the sinking of the IRIS Dena may prove to be more than a single wartime incident. It could mark a turning point in how Sri Lanka perceives its position within an increasingly contested Indian Ocean. The island now faces the challenge of safeguarding its neutrality and economic interests while navigating a maritime environment that is becoming steadily more militarised and unpredictable.
Inferior Coal Supplies Raise Concerns Over Possible Power Shortages
March 05, Colombo (LNW): Sri Lanka could face electricity supply disruptions in the coming months due to concerns over the quality of coal used in power generation, according to a recent assessment by the Public Utilities Commission of Sri Lanka (PUCSL).
The report indicates that lower-grade coal being supplied to certain thermal power stations may affect their operating capacity, potentially creating challenges in meeting electricity demand, particularly during night-time peak hours.
The analysis was carried out using electricity demand projections submitted by the Ceylon Electricity Board (CEB) for February 2026. Based on these estimates, it was assumed that hydropower plants would be able to contribute up to 1,300 megawatts to support the evening demand, while the Lakvijaya Power Station would generate a maximum of around 690 megawatts due to reduced capacity.
Officials attribute the limitation partly to operational concerns that may require each unit to reduce output by approximately 40 megawatts.
The report also highlighted a number of scheduled maintenance shutdowns at several key power plants this year, which could further tighten the available generation capacity. Unit 1 of the Lakvijaya Power Station is expected to undergo maintenance in June for about 25 days, followed by a similar maintenance period for Unit 2 in July.
In addition, the 270-megawatt Westcoast Power Plant is scheduled for maintenance in April lasting around 10 days, while the 150-megawatt KCCP II plant is due to undergo maintenance during May, June and July.
Taking these planned shutdowns into account, the Commission warned that the national grid could face potential capacity shortages in April, June and July if electricity demand rises to around 3,030 megawatts, 3,070 megawatts and 3,000 megawatts respectively. For comparison, the highest night-time peak demand recorded so far this year was 2,949 megawatts on February 25.
The report further cautioned that the situation could worsen if even a single major power plant or coal unit becomes unavailable during these periods, as this would significantly reduce the system’s ability to meet peak demand.
Regulators also noted that if generation at the Lakvijaya facility needs to be scaled down further to maintain safe and stable operations, the risk of supply shortages could increase.
Technical observations within the report pointed to the high ash content in some coal shipments and instances where steam temperatures exceeded recommended limits. These conditions, it said, could accelerate wear within boiler systems and increase the likelihood of equipment overheating, potentially affecting the reliability of the plant.
Energy authorities are expected to review the findings and consider measures to strengthen the stability of the national power supply while addressing the quality concerns surrounding imported coal.
Parliament Appoints Special Committee to Probe Preparedness for Cyclone Ditwah
March 05, Colombo (LNW): A parliamentary committee tasked with examining the country’s level of preparedness ahead of last year’s devastating Cyclone Ditwah has been formed, with Minister of Health and Mass Media Dr Nalinda Jayatissa appointed to chair the panel.
The announcement was made by Speaker Dr Jagath Wickramaratne at the beginning of Thursday’s sitting of Parliament. The committee has been established to carry out an in-depth review of the circumstances surrounding the disaster and to determine whether adequate preventive measures had been in place prior to the cyclone’s impact.
Alongside Dr Jayatissa, several lawmakers have been nominated to serve on the body. These include Deputy Ministers Prasanna Gunasena, Anton Jayakody and Aruna Jayasekara, as well as Members of Parliament Anuradha Jayaratne, Hector Appuhamy, Rohini Kumari Wijerathna, MKM Aslam, Anushka Thilakarathne, Kanthasamy Prabhu, Ruwan Mapalagama and Pathmanathan Sathiyalingam.
The decision to establish the committee follows a motion presented in Parliament in January by opposition legislators calling for a full inquiry into the events surrounding Cyclone Ditwah. The proposal, introduced by Chief Opposition Whip Gayantha Karunathilleka, argued that the scale of destruction and loss caused by the storm warranted a thorough parliamentary investigation.
Cyclone Ditwah, widely regarded as one of the most severe natural disasters to affect Sri Lanka in recent decades, left significant damage to homes, infrastructure and livelihoods across several regions of the country. Lawmakers supporting the motion noted that a comprehensive assessment of the losses and the government’s readiness to respond to the disaster had yet to be completed.
Under the provisions of the parliamentary Standing Orders, the newly formed Select Committee will have the authority to summon witnesses, request documents and gather both written and oral evidence as part of its inquiry. It will also be responsible for examining the effectiveness of early warning systems, emergency preparedness plans and coordination among relevant state agencies.
The committee is expected to submit a detailed report to Parliament outlining its findings and recommendations. According to the motion approved by the House, the report should be presented within three months of the committee’s first meeting, unless Parliament grants an extension.
The investigation is expected to focus not only on identifying shortcomings but also on recommending improvements to disaster preparedness and response mechanisms to reduce the impact of similar events in the future.
President Reviews Safety Measures for Sri Lankans Abroad and Tourists Amid Middle East Crisis
March 05, Colombo (LNW): President Anura Kumara Dissanayake on Tuesday convened a high-level meeting at the Presidential Secretariat to assess ongoing measures aimed at protecting Sri Lankan migrant workers and tourists in light of the escalating conflict in the Middle East.
The discussion focused on the steps already taken by the Ministry of Foreign Affairs, Foreign Employment and Tourism together with the Ministry of Ports and Civil Aviation to monitor developments in the region and respond to potential challenges faced by Sri Lankans overseas as well as foreign visitors currently in Sri Lanka.
During the meeting, officials briefed the President on the emergency response mechanisms introduced through Sri Lanka’s diplomatic missions. Round-the-clock assistance services have been activated through embassies and consulates in affected countries to provide immediate support for Sri Lankan nationals and tourists if required.
Authorities reported that, according to the latest information received from diplomatic missions, there have been no reports of serious injuries involving Sri Lankan citizens living in the conflict-affected areas. Embassies have also been directed to provide guidance and assistance to those who have already sought help.
Officials further noted that hotlines established by the Sri Lanka Tourism Development Authority and the Sri Lanka Bureau of Foreign Employment are continuing to receive and process inquiries. These channels have mainly dealt with administrative matters such as visa extensions and immigration-related documentation.
A number of workers have sought clarification regarding travel and employment documentation, while a small number of financial inquiries have also been recorded. However, no requests for special evacuation flights have been submitted so far.
The meeting also explored ways to support Sri Lankan migrant workers who may have temporarily returned home due to the regional tensions. Authorities agreed to communicate with relevant foreign governments through diplomatic channels to request a grace period that would allow these workers to resume their employment once conditions stabilise.
President Dissanayake also instructed officials to compile updated information on Sri Lankan citizens who had travelled to Middle Eastern countries for tourism or business and may currently face difficulties returning home. Necessary arrangements, he said, should be prepared in advance to facilitate their safe return if required.
Representatives from SriLankan Airlines informed the meeting that international flight operations are gradually returning to normal levels and that the national carrier would be able to accommodate any necessary travel arrangements without major difficulty.
Several ministers and senior government officials attended the discussion, including representatives from the foreign affairs, tourism, aviation and foreign employment sectors, along with senior administrative officials and heads of relevant state institutions responsible for travel, immigration and overseas employment.
Oil Prices Climb as Middle East Conflict Raises Supply Concerns
March 05, World (LNW): Global oil prices edged higher during early Asian trading on Thursday, reflecting mounting anxiety in energy markets over potential supply disruptions linked to the intensifying conflict in the Middle East.
U.S. benchmark West Texas Intermediate (WTI) crude rose by nearly two per cent, trading at about US$76 per barrel after finishing Wednesday’s session largely unchanged at around US$74.66. Meanwhile, Brent crude from the North Sea, which had closed the previous day near US$81.40 per barrel, had yet to resume active trading during the early Asian hours.
Market analysts attribute the upward pressure on prices to growing uncertainty surrounding shipping routes in the Gulf region, particularly the Strait of Hormuz, a narrow but crucial maritime passage through which roughly one-fifth of the world’s seaborne crude oil supply is transported. Significant volumes of liquefied natural gas also pass through the same corridor.
Tensions escalated after hostilities involving the United States, Israel and Iran intensified earlier this week, raising fears that tanker movements through the strait could face further disruptions. Shipping companies and insurers are reportedly reviewing risk assessments as the security situation evolves.
In an effort to reassure markets, U.S. President Donald Trump stated earlier this week that the U.S. Navy stands ready to escort oil tankers travelling through the area if required. He also indicated that Washington would assist shipping firms by providing insurance guarantees to help maintain the flow of energy supplies.
Regional maritime incidents have further heightened concerns. On Wednesday, Oman’s navy rescued 24 crew members from a Malta-flagged container vessel that had reportedly been struck by missiles while navigating the strait, according to state media reports.
The incident marked the fourth reported attack on commercial shipping in the region within a 24-hour period, following earlier reports that projectiles had either struck or landed dangerously close to several other vessels near the coasts of the United Arab Emirates and Oman.
Iran’s Revolutionary Guards later claimed they had established “complete control” over the strategically vital waterway, a statement that has added to market unease.
Despite geopolitical tensions, financial markets in the United States and Europe reacted relatively calmly. Wall Street ended Wednesday’s session on a positive note, with the S&P 500 gaining around 0.8 per cent, while major European indices also closed higher. In contrast, several Asian stock markets recorded notable declines as investors weighed the potential economic fallout from the deepening regional crisis.
Sri Lanka Engages Gulf Leaders in Diplomatic Talks Amid Rising Middle East Tensions
March 05, Colombo (LNW): Sri Lanka’s Minister of Foreign Affairs, Vijitha Herath, has held a series of telephone discussions with several foreign ministers from Gulf and Middle Eastern nations as concerns grow over the escalating conflict in the region.
During a conversation with Jordan’s Deputy Prime Minister and Foreign Minister, Ayman Safadi, the Sri Lankan minister reviewed the rapidly developing security situation in the Middle East and exchanged views on the broader regional outlook.
Herath also conveyed Sri Lanka’s appreciation for the continued support extended by Jordan to the Sri Lankan community living and working there.
In the discussion, both sides reportedly emphasised the urgency of restoring calm in the region, with Herath reiterating that Sri Lanka strongly supports efforts aimed at preserving peace and stability through diplomatic engagement.
The Sri Lankan foreign minister also spoke with Bahrain’s Foreign Minister, Dr Abdullatif bin Rashid Al Zayani, where the two officials discussed the potential consequences of the conflict for regional security and economic stability. Herath highlighted the importance of dialogue and restraint to prevent further escalation and thanked the Bahraini government for its assistance and protection of Sri Lankan nationals residing in the kingdom.
In a separate conversation, Herath held talks with Lebanon’s Foreign Minister, Youssef Raggi. The two diplomats exchanged views on the unfolding situation and underlined the importance of safeguarding civilian lives while pursuing diplomatic solutions to ease tensions.
Meanwhile, Herath also spoke with Kuwait’s Foreign Minister, Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, focusing on the need for constructive diplomacy to stabilise the region. During the discussion, the Sri Lankan minister stressed the importance of restraint among all parties involved in the conflict and reaffirmed Sri Lanka’s support for peaceful resolution mechanisms.
He also extended gratitude to the Kuwaiti government for its continued cooperation and assistance to the Sri Lankan community living in Kuwait.
Sri Lankan authorities have indicated that ensuring the safety and welfare of these communities remains a key priority while advocating for dialogue and de-escalation across the region.
84 Bodies Recovered After Iranian Warship Sinks South of Sri Lanka Following U.S. Strike
March 05, Colombo (LNW): Sri Lankan naval authorities say the bodies of 84 people have been recovered after an Iranian naval vessel went down in deep waters south of Sri Lanka, beyond the island’s maritime boundary, following what the United States described as a submarine attack.
According to the Sri Lanka Navy, search-and-rescue teams remain at sea as efforts continue to locate additional missing crew members from the stricken vessel.
The ship involved, identified as the IRIS Dena, reportedly sank in the Indian Ocean after being struck during an encounter involving a U.S. submarine. The incident occurred while the vessel was returning to Iran after taking part in a multinational fleet review and naval exercise held in Visakhapatnam, India.
Officials say the warship had an estimated 180 personnel on board at the time of the attack, though the exact number of those still unaccounted for has yet to be confirmed.
In Washington, U.S. Secretary of Defense Pete Hegseth acknowledged that an American submarine had destroyed an Iranian warship in the Indian Ocean. Speaking to reporters, he said the vessel had assumed it was operating safely in international waters before it was struck by a torpedo.
He described the strike as the first time since the Second World War that a hostile naval vessel had been sunk by a torpedo in combat, although he did not specifically identify the Iranian ship involved.
Sri Lankan naval units first became aware of the situation after receiving an emergency distress signal from the IRIS Dena in the early hours of the morning. Patrol ships and aircraft were deployed to the area, leading to the rescue of 32 survivors, who were later taken ashore and admitted to Galle National Hospital for treatment.
At a media briefing, Navy spokesperson Commander Buddhika Sampath said the priority of the operation had been the immediate rescue of survivors. He noted that when Sri Lankan rescuers arrived at the reported location, the vessel itself was no longer visible.
Instead, search crews encountered large slicks of oil on the surface along with drifting life rafts and scattered debris, suggesting the ship had already sunk beneath the waves by the time help arrived.
Authorities say recovery and search operations will continue in the coming days as hopes remain that more survivors could still be found.
Afternoon showers expected in several districts (Mar 05)
March 05, Colombo (LNW): Showers or thundershowers are likely at a few places in Uva and Sabaragamuwa provinces and in Hambantota, Nuwara-Eliya and Ampara districts after 2.00 p.m., the Department of Meteorology said in its daily weather forecast today (05).
Mainly dry weather will prevail over the other parts of the island.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Southern, Uva, North-western and North-central provinces and in Mannar and Vavuniya districts during the early hours of the morning.
Marine Weather:
Condition of Rain:
Mainly fair weather will prevail over the sea areas around the island.
Winds:
Winds will be variable in direction and wind speed will be (20-30) kmph.
State of Sea:
Sea areas around the island will be slight.
Breaking News: Suspicious Warship Reported Off Panadura Coast
LNW (Colombo): According to sources, a suspicious warship has been spotted in the sea off the coast of Panadura.
The vessel has reportedly requested permission to enter Sri Lankan waters, but local authorities have not granted approval so far.
Sources further stated that there are concerns about the possibility of an attack targeting the ship, although no official confirmation has been issued yet.