January 15, Colombo (LNW): Amid growing instability across the Middle East, the Embassy of Sri Lanka in Israel has released a fresh set of safety advisories for Sri Lankan citizens living and working in the country, urging calm, vigilance and strict adherence to official instructions.
In its statement, the Embassy drew attention to recent regional developments, including an advisory issued by the Government of India calling on its nationals and people of Indian origin in Iran to depart at the earliest opportunity. It also noted international media reports suggesting preparations for the evacuation of staff from certain United States military facilities in Doha, alongside disruptions and restrictions affecting some flights transiting the region.
The Embassy reassured Sri Lankans that Israel’s security apparatus remains on a high state of readiness. According to the statement, the Israel Defense Forces are fully prepared to respond to any escalation, with missile defence systems on heightened alert.
Addressing speculation and unverified reports circulating on social media and other platforms, the Embassy cautioned against panic. It stressed that Israeli security authorities are equipped to manage emerging threats and will take necessary measures to ensure public safety. Sri Lankan nationals were advised not to be unduly alarmed by misinformation and to rely only on official sources.
The Embassy reminded the community that during the Iranian missile attacks in June 2025, no Sri Lankans were injured, largely due to timely compliance with warnings and the swift use of shelters following alerts issued by Israeli authorities and the Embassy. Building on that experience, Sri Lankans were urged to remain alert at all times and to follow instructions broadcast through Israeli media and security channels without delay.
Among the guidance issued, those with ongoing medical needs were advised to keep essential medication within easy reach. Sri Lankans working outdoors were instructed to move immediately to the nearest shelter upon receiving an alert, while those travelling by vehicle should leave their vehicles and seek the closest safe location if a warning is sounded. Families in Sri Lanka were also asked to remain calm should temporary communication disruptions occur due to power or internet outages.
In addition, Sri Lankans planning travel to Israel in the coming days were encouraged to closely monitor developments and assess the situation carefully before proceeding.
The Embassy noted that while its offices will be closed on 15 January 2026 for Thai Pongal and on 16 and 17 January 2026 due to the Israeli weekend, emergency services will remain available should any urgent situation arise.
Sri Lanka Embassy Issues Safety Advisory for Nationals in Israel Amid Rising Regional Tensions
UN Assessment Reveals Vast Recovery Challenge After Cyclone Ditwah
January 15, Colombo (LNW): A newly released United Nations Development Programme (UNDP) review has painted a stark picture of the damage left by Cyclone Ditwah, showing that almost every community in the worst-hit parts of Sri Lanka has suffered harm to homes, roads and essential services, with rebuilding needs stretching far beyond immediate relief.
The assessment, published on Wednesday, drew on interviews with more than 500 local administrators, entrepreneurs and community leaders across 85 divisional secretariat areas in 22 severely affected districts. An overwhelming majority of those consulted said their localities had sustained damage to housing, transport networks, industrial facilities or shared community assets, with destroyed homes and broken roads emerging as the most common problems.
Cyclone Ditwah made landfall on November 26, 2025 and is regarded as the most lethal disaster to strike the country since the 2004 Indian Ocean tsunami. Earlier satellite-based analysis by UNDP suggested that floodwaters spread across nearly a fifth of Sri Lanka’s landmass, placing around 2.3 million people at risk.
The latest findings suggest that the effects on daily life and local economies are both deep and enduring, with many communities struggling to find the money, materials and skilled labour needed to rebuild.
UNDP Sri Lanka Resident Representative Azusa Kubota welcomed the Government’s pledge of LKR 95 billion in assistance for micro, small and medium-sized enterprises, including a concessional loan scheme. She stressed, however, that special attention must be paid to informal businesses, many of which fall outside official systems but remain vital to local economies and employment.
The assessment indicates that economic disruption has been widespread, with nearly all respondents reporting damage to livelihoods. Losses in agriculture, livestock farming, wage employment and small-scale businesses were frequently cited, particularly within the informal sector, which supports a large proportion of the workforce. Access to affordable credit, capital for rebuilding premises and restocking, and direct support for micro enterprises were identified as urgent priorities.
Vulnerable groups have been hit especially hard. More than half of those interviewed said older people, persons with disabilities and households headed by women were among those most affected. While government assistance has been the main coping mechanism, many families have also relied on aid agencies or informal borrowing, raising concerns about mounting household debt and its potential to slow longer-term recovery.
Practical barriers to reconstruction were also highlighted, including shortages of building materials, a lack of skilled workers and limited funding. Respondents pointed to slow approval processes and weak coordination between institutions as further factors delaying progress.
Beyond physical damage, the cyclone has created environmental and health risks, with reports of polluted water sources, soil erosion and harm to natural ecosystems, suggesting that the disaster may have lasting consequences for public health and climate resilience.
UNDP noted that Sri Lanka, like much of South Asia, is becoming increasingly vulnerable to extreme weather linked to climate change. The organisation said the findings underline the need for sustained investment to restore livelihoods and infrastructure, particularly for informal workers and small businesses, while embedding stronger disaster and climate resilience as the country moves from emergency response towards long-term recovery and reconstruction.
President Calls for Unity and Renewal in Thai Pongal Message
January 15, Colombo (LNW): Marking the Thai Pongal festival, President Anura Kumara Dissanayake reflected on its enduring spiritual and cultural meaning, portraying it as a moment of thanksgiving, renewal and shared optimism at a time of national recovery.
In his message, the President observed that Thai Pongal, revered by Hindu communities across the world, is rooted in gratitude towards the forces that sustain life. He noted that the festival honours the Sun, the land and the animals that make cultivation possible, while also reminding people of their responsibility to live in harmony with nature. More than a harvest celebration, he said, Thai Pongal encourages a confident step towards the future, guided by resilience and hope.
Turning to the country’s recent experiences, President Dissanayake acknowledged the profound impact of the most severe natural calamity Sri Lanka has faced in recent years. He pointed out that the nation is now engaged in an unprecedented rebuilding effort, one that demands perseverance, cooperation and a shared sense of purpose. He urged citizens to strengthen their collective resolve and support one another as the country works to restore livelihoods and communities.
The President also highlighted the relevance of Thai Pongal in the present moment, noting that its close bond with the natural world carries special meaning at a time when environmental awareness and sustainable living are more important than ever. He said the festival offers an opportunity for individuals and society alike to reconnect with values of balance, respect and stewardship of the earth.
Concluding his message on an optimistic note, President Dissanayake reaffirmed his belief that adversity can give way to renewal. As Sri Lanka moves forward with unity and determination to overcome challenges and shape a prosperous future, he expressed the hope that this year’s Thai Pongal would bring blessings, strength and renewed confidence to the nation.
Full Message:
“The Thai Pongal festival, celebrated with great devotion and enthusiasm by Hindu devotees across the world, falls today (15).At Thai Pongal, gratitude is expressed to the Sun God, to cattle such as cows and bulls that support a successful harvest and to nature itself. Symbolising prosperity and thankfulness, Thai Pongal is not
merely a celebration of a bountiful harvest, but also an invitation to embark upon a new journey towards the future with courage and confidence.In the aftermath of the greatest natural disaster we have faced in recent times, kindling the hope of rising again as a nation, we are together shouldering the greatest reconstruction effort ever undertaken, with immense effort and firm determination. On this Thai Pongal Day, which looks forward to prosperity, I once again call upon everyone to come forward and join hands even more strongly with this endeavour.At a time when the need to draw closer to nature is felt more keenly than ever before, I wish to remind you that the Thai Pongal festival, which is deeply connected with nature, adds profound meaning to our lives and to our society.We firmly believe that there is light after every darkness. As we move forward with unwavering resolve and unity to overcome challenges and build, ‘A Thriving Nation – A Beautiful Life’, may this year’s Thai Pongal celebration be a great blessing. I extend my heartfelt best wishes for a joyous and prosperous Thai Pongal to all Sri Lankan Tamils and to Tamils living across the world.”
Showery condition expected to reduce from today (Jan 15)
January 15, Colombo (LNW): Showery condition over the island is expected to reduce from today (15), the Department of Meteorology said in its daily weather forecast today.
Showers or thundershowers may occur at a few places in Kaluthara, Galle, Matara and Rathnapura districts after 4.00 p.m.
Mainly fair weather will prevail elsewhere.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Northwestern provinces and in Galle and Matara districts during the early hours of the morning.
Marine Weather:
Condition of Rain:
Showers or thundershowers may occur at a few places in the sea areas off the coast extending from Colombo to Matara via Galle in the evening or night.
Winds:
Winds will be North-easterly. Wind speed will be (25-35) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Colombo to Mannar via Puttalam and from Matara to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coast extending from Colombo to Mannar via Puttalam and from Matara to Pottuvil via Hambantota will be fairly rough at times. The other sea areas around the island may be slight to moderate.
Aid Promised, Relief Delayed: MSMEs Wait for Government Action
Sri Lanka’s Micro, Small and Medium Enterprises (MSMEs), already weakened by years of economic turmoil, are now trapped in a slow-moving recovery following Cyclone Ditwah and the floods that followed in late 2025 and early 2026. While the government announced substantial financial assistance and concessional loan schemes, the actual disbursement of funds has been painfully slow, exposing deep coordination failures between ministries, financial institutions, regulators, and banks.
Initial government assessments revealed that nearly 14,000 businesses were directly affected across all 25 districts, with micro and small enterprises forming the bulk of the casualties. Many suffered extensive damage to machinery, production facilities, and inventories, forcing operations to shut down for weeks. For enterprises already struggling with weak cash flows and high borrowing costs, the disaster pushed them closer to collapse.
In response, authorities unveiled a 3 percent subsidised loan scheme and allocated Rs. 10 billion specifically for cyclone-affected enterprises, alongside a broader Rs. 95 billion MSME financing plan for 2026. On paper, the relief package appears generous. Micro enterprises were promised loans up to Rs. 250,000, small and medium firms up to Rs. 1 million, and larger enterprises as much as Rs. 25 million. Yet, weeks after the announcement, many eligible businesses report that funds have not reached them.
The core problem, according to industry representatives, is not a lack of policy intent but poor execution. Multiple agencies – including the Ministry of Finance, Ministry of Industries, the Central Bank, state banks, and private banks – operate in silos, each with different criteria, timelines, and documentation requirements. While state banks began limited disbursements in late December, private banks only moved towards signing memorandums of understanding in mid-January, delaying access for thousands of affected borrowers.
Compounding the issue is the legacy of non-performing loans. More than 60 percent of MSMEs were already classified as stressed borrowers following the economic crisis. Despite the Central Bank’s moratorium and loan restructuring options, banks remain cautious, slowing approvals and subjecting applicants to repeated scrutiny. For enterprises facing immediate working capital shortages, these delays are often fatal.
The economic cost of inaction is mounting. Losses to the MSME sector are estimated between Rs. 50 billion and Rs. 85 billion, while supply chain disruptions from damaged infrastructure continue to raise transport costs and threaten food price stability. Given that MSMEs account for over 90 percent of businesses and more than half of GDP, the sector’s stalled recovery poses systemic risks to the wider economy.
Experts argue that disaster relief cannot be treated as routine credit disbursement. Without a single coordinating authority, real-time data sharing, and clear accountability, well-publicised relief schemes risk becoming symbolic gestures. As weeks turn into months, Sri Lanka’s MSMEs are learning a hard lesson: announcements may come quickly, but relief moves at the speed of bureaucracy.
Fuel, Power, and Influence: China’s Billion-Dollar Bet on Hambantota
Sri Lanka is moving closer to a decision that could significantly reshape its energy sector and regional standing. The Government expects to finalise the agreement for the proposed Sinopec oil refinery in Hambantota by the first quarter of 2026, Foreign Affairs Minister Vijitha Herath confirmed following discussions with Chinese Foreign Minister Wang Yi during his recent visit to Colombo. While officially framed as an economic partnership, the project carries strategic implications that extend well beyond fuel production.
Estimated at USD 3.7 billion, the Sinopec refinery would be the largest single foreign direct investment in Sri Lanka’s history. For China, the venture marks an important step in expanding the global footprint of Sinopec, one of its largest state-owned energy companies. With China’s domestic refining market nearing saturation, overseas projects have become essential to sustaining long-term growth.
Hambantota’s geographic position makes it particularly attractive. Located close to major Indian Ocean shipping lanes, the refinery is expected to complement the Chinese-managed Hambantota Port and help transform the area into a regional hub for energy storage, refining, and bunkering services. This integration aligns closely with Beijing’s Belt and Road Initiative, which seeks to connect infrastructure, trade, and energy networks across strategic regions.
The refinery is planned to process approximately 200,000 barrels of crude oil per day. While the majority of output is intended for export, Sri Lanka has negotiated access to around 40 percent of production to meet domestic fuel needs. Government officials argue this will reduce dependence on imported refined petroleum, lower foreign exchange outflows, and improve national energy security critical goals following the country’s recent economic crisis.
Beyond energy, talks between the two Foreign Ministers covered trade, tourism, and development cooperation. Minister Herath expressed appreciation for China’s assistance following Cyclone Ditwah and requested continued support for rebuilding damaged roads, railways, and bridges. Minister Wang Yi reaffirmed China’s commitment to Sri Lanka’s recovery and expressed confidence in the country’s direction under President Anura Kumara Dissanayaka.
Despite the promised economic gains, the project is being closely watched by regional and international observers. China’s expanding presence in Hambantota has long raised concerns about strategic influence in the Indian Ocean. As negotiations advance toward finalisation in 2026, Sri Lanka faces the challenge of balancing urgent economic needs with geopolitical sensitivities in an increasingly competitive region.
India’s Rail Support Revives Northern Sri Lanka Connectivity
India has once again underlined its role as a key development partner of Sri Lanka by extending crucial assistance for the restoration of the Northern Railway Line, a lifeline for communities in the island’s Northern Province. The restoration works were officially launched by Indian High Commissioner Santosh Jha and Sri Lanka’s Minister of Transport, Highways and Urban Development, Bimal Rathnayake, marking a significant step in rebuilding transport infrastructure damaged by Cyclone Ditwah.
The project is being implemented under an Indian grant of USD 5 million and forms part of a broader USD 450 million reconstruction and rehabilitation package announced during the recent visit of Indian External Affairs Minister Dr. S. Jaishankar. The assistance reflects India’s continued commitment to Sri Lanka’s post-disaster recovery and long-term infrastructure development, particularly in regions that were severely affected by natural calamities.
Cyclone Ditwah caused extensive destruction to rail infrastructure, disrupting passenger travel, logistics, and access to essential services. In the northern and north-central provinces, railways remain the most reliable and affordable mode of transport for thousands of daily commuters. Recognising this urgency, India moved swiftly to support the restoration of the damaged railway network, which had originally been constructed with Indian assistance.
The restoration is being carried out by IRCON International Limited, an Indian public sector enterprise with wide experience in railway construction and rehabilitation across South Asia and beyond. The project covers three critical sections of the Northern Railway Line Maho to Omanthai, Omanthai to Jaffna, and Medawachchiya to Mannar areas that suffered some of the worst damage and led to prolonged connectivity disruptions.
Work commenced on January 11, less than three weeks after the assistance was announced, highlighting the emphasis India places on timely delivery of development cooperation. Authorities aim to restore train services to pre-cyclone frequency levels within three months, targeting April 2026, ahead of the Sinhala and Tamil New Year. Remaining works are expected to be completed by May 2026, supported by large-scale deployment of skilled manpower and specialised machinery.
Beyond immediate restoration, the project will improve long-term connectivity, boost regional trade, and enhance access to education, healthcare, and employment in the northern province. Improved rail links are expected to stimulate economic activity, encourage tourism, and strengthen social integration between the north and the rest of the country.
Railway development has long been a cornerstone of India–Sri Lanka cooperation. India’s cumulative assistance to Sri Lanka’s railway sector now stands at around USD 1.2 billion, encompassing nearly 500 kilometres of track construction and rehabilitation, modern signalling systems, and the supply of rolling stock. The Northern Railway Line restoration is therefore not just a recovery effort, but part of a broader partnership aimed at building resilient, inclusive infrastructure for Sri Lanka’s future.
Tax Break on Used Cars Drains Revenue, Distorts Market
Sri Lanka’s longest-standing automotive industry association has intensified calls for the government to reverse what it describes as an economically unsound tax concession on used vehicle imports, warning that the policy is quietly eroding public finances and skewing market competition.
The Ceylon Motor Traders’ Association (CMTA), an affiliate of the Ceylon Chamber of Commerce, is urging policymakers to scrap the 15 percent depreciation allowance applied to the cost, insurance and freight (CIF) value of used vehicles when calculating import duties. According to the association, the concession lacks a defensible economic rationale and results in substantial revenue losses for the state.
Despite repeated submissions through national budget consultations, no official position has yet been announced by the authorities. However, the CMTA argues that the issue has grown more pressing as the nature of used vehicle imports has changed significantly in recent years.
Many of the vehicles currently entering the country under the “used” category, the association notes, have negligible mileage and are priced close to brand-new units on a CIF basis. Yet they continue to benefit from reduced tax liabilities due to the depreciation allowance, allowing them to undercut authorised dealers of new vehicles.
This disparity, the CMTA says, has created an uneven competitive landscape, where similar-value imports are taxed at markedly different rates. While acknowledging the government’s objective of improving vehicle affordability, the association cautions that tax relief measures must be transparent, targeted and economically justified.
If affordability is the policy goal, the CMTA suggests that comparable relief could be extended to new vehicles sold through authorised agents. Such vehicles, it points out, typically include long-term manufacturer warranties, which reduce lifetime maintenance costs and conserve foreign exchange, as repairs and replacement parts are borne by overseas manufacturers rather than local importers.
The association has also reiterated provisions in a 2013 gazette that depreciation should be applied using a structured age-based scale, capped at 10 percent, to prevent manipulation. In its view, the continued blanket application of a 15 percent allowance undermines both revenue integrity and regulatory discipline.
Trump Urges Iranians to Continue Protests as Tehran Intensifies Crackdown
U.S. President Donald Trump on Tuesday called on Iranians to continue protesting, claiming that assistance was “on the way,” as Iran’s clerical leadership pressed ahead with a severe crackdown on the country’s largest demonstrations in years.
“Iranian Patriots, KEEP PROTESTING – TAKE OVER YOUR INSTITUTIONS!!!… HELP IS ON ITS WAY,” Trump wrote on Truth Social, adding that he had cancelled all meetings with Iranian officials until what he described as the “senseless killing” of protesters comes to an end.
The unrest, driven largely by worsening economic conditions, represents the most serious internal challenge to Iran’s leadership in at least three years. It has unfolded amid heightened international pressure following Israeli and U.S. strikes last year.
An Iranian official told Reuters earlier on Tuesday that around 2,000 people have been killed during the protests, marking the first time authorities have acknowledged such a high death toll following two weeks of nationwide unrest. The official claimed that individuals described as “terrorists” were responsible for the deaths of both protesters and security personnel, but did not provide a detailed breakdown.
On Monday evening, Trump announced a 25 percent tariff on imports from any country doing business with Iran, a major oil exporter. He has also said further military action remains an option, reiterating earlier remarks that the United States is “locked and loaded.”
Tehran has not yet publicly responded to the tariff announcement, though China swiftly criticized the move. Despite heavy U.S. sanctions, Iran exports much of its oil to China, with Turkey, Iraq, the United Arab Emirates and India also among its key trading partners.
Russia condemned what it described as “subversive external interference” in Iran’s internal affairs, warning that U.S. threats of further military action were “categorically unacceptable.” In a statement, the Russian Foreign Ministry cautioned that using unrest as a pretext for renewed aggression against Iran could have disastrous consequences for the Middle East and global security.
Despite the scale of the protests and Iran’s deepening economic challenges, there have been no clear signs of fractures within the country’s security establishment that could bring an end to the clerical system in power since the 1979 Islamic Revolution.
However, German Chancellor Friedrich Merz said he believed the Iranian government was nearing collapse. “I assume that we are now witnessing the final days and weeks of this regime,” he said, adding that reliance on violence to retain power signaled its eventual downfall.
Iranian Foreign Minister Abbas Araqchi rejected Merz’s comments, accusing Germany of double standards and saying the remarks had undermined Berlin’s credibility.
China Donates School Uniform Fabric for 2026; Handover Ceremony Held at Colombo Port
The official ceremony to hand over school uniform fabric for 2026, donated by the Government of China, was held at the Colombo Port premises under the patronage of Prime Minister Harini Amarasuriya.
At the event, the Ambassador of the People’s Republic of China to Sri Lanka, Qi Zhenhong, symbolically handed over the fabric to Prime Minister Amarasuriya, who also serves as Minister of Education, Higher Education and Vocational Education.
According to the Ministry of Education, approximately 4,418,404 students islandwide will be eligible to receive school uniform fabric under the 2026 programme.
The Ministry further stated that arrangements have been made to distribute the consignments of school uniform fabric to zonal education offices across the country starting from January 19, 2026.