March 01, Colombo (LNW): The Colombo Grand Mosque has officially confirmed that the crescent moon, marking the start of the holy month of Ramadan, was not sighted on the evening of Friday (February 28).
As a result, Muslims across Sri Lanka will commence their observance of fasting and prayer on Sunday (March 02).
Ramadan, the ninth month of the Islamic lunar calendar, holds great significance for Muslims around the world. It is a time of deep reflection, spiritual devotion, and self-discipline, as adherents fast from dawn until sunset.
This annual observance commemorates the moment when the Quran was first revealed to Prophet Muhammad during the sacred night of “Laylat al-Qadr.”
Fasting, one of the Five Pillars of Islam, is not only a physical act of abstaining from food and drink but also serves as a time for Muslims to strengthen their faith, increase their acts of charity, and grow closer to Allah.
It is a period that encourages community solidarity, with Muslims coming together for prayers, family gatherings, and the sharing of meals during the evening’s “Iftar,” marking the end of each day’s fast.
Throughout the month of Ramadan, Muslims dedicate themselves to increased prayer, reflection, and worship, while also seeking to help those less fortunate.
The exact dates of Ramadan may vary depending on the sighting of the moon, and the Grand Mosque’s announcement signals the start of an important spiritual journey for Muslims across Sri Lanka.
As the month unfolds, Muslims in Sri Lanka and around the globe will continue to observe the fast and engage in activities designed to purify the soul and renew their commitment to faith.
March 01, Colombo (LNW): In a strong and resolute statement delivered in Parliament yesterday (28), President Anura Kumara Dissanayake affirmed that the current government would not tolerate the resurgence of terrorism or racism in Sri Lanka.
The President made these remarks during a debate on the Defence Ministry’s expenditure head, as he warned politicians that attempts to overthrow the government through conspiracies or racial divides would no longer be permitted.
Addressing the gathering, President Dissanayake expressed his determination to ensure that the nation remains steadfast in its commitment to peace and unity, whilst also issuing a firm warning to those seeking to destabilise the government.
“The era of changing governments through conspiracies and racism is now over,” he declared, making it clear that any efforts to exploit these tactics would be futile.
In his address, the President also took the opportunity to highlight Sri Lanka’s economic recovery. He reassured Parliament that the country’s economy is stabilising and that they expect the International Monetary Fund (IMF) to approve the third review of Sri Lanka’s Extended Fund Facility (EFF), which would pave the way for the disbursement of the fourth tranche of funding. The report on this review was presented to the IMF’s Executive Board on the same day.
President Dissanayake expressed confidence that the successful completion of the third review would bring positive results, marking another significant step in the nation’s economic recovery. He emphasised that Sri Lanka’s economy is headed towards a robust and resilient future, with greater stability in the coming years.
In terms of national security and legal reform, the President revealed that his administration is working towards repealing the controversial Prevention of Terrorism Act (PTA).
He confirmed that a committee had been appointed to draft a new legal framework to replace the PTA, signalling the government’s commitment to ensuring human rights whilst addressing security concerns.
The President also outlined his plans for restructuring the armed forces, stating that by 2030, the personnel of the Sri Lanka Army would be reduced to 100,000, the Navy to 40,000, and the Air Force to 18,000.
This move, according to Dissanayake, aims to transform the military into a more professional force that will serve the nation and not individual interests.
Turning his attention to the opposition, President Dissanayake issued a stern warning to those who might seek to undermine the government through political instability or economic crises.
He reflected on past instances in Sri Lanka’s history where governments had fallen due to internal divisions or external pressures, but emphasised that his administration is prepared to withstand such challenges.
“If you think you can overthrow this government through an economic crisis, that is a mere dream,” he asserted. “Attempts to destabilise the government through internal party conflicts or public protests will also fail. We are not a government that will fall for such tactics.”
He also dismissed any attempts to create crises within the ruling party, insisting that this government was united and resolute in its commitment to national progress.
He called on all political factions to respect the democratic process and work together for the stability and prosperity of the nation, warning that any attempts to disrupt the current order would be firmly resisted.
In concluding his statement, President Dissanayake reiterated his commitment to securing a stable future for Sri Lanka, one free from terrorism, racism, and political manipulation.
March 01, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has confirmed that fuel prices will remain unchanged for the month of March 2025, with no revisions expected in the immediate future.
In an official statement, the CEYPETCO reassured consumers that the current fuel prices will stay in effect throughout the month, which are as follows:
Petrol 92: Rs. 309
Petrol 95: Rs. 371
White Diesel: Rs. 286
Super Diesel: Rs. 331
Kerosene: Rs. 183
The CEYPETCO’s Chairman took to the media to alleviate concerns over potential fuel shortages, urging the public to avoid unnecessary panic. He made it clear that there have been no indications from fuel retailers about any disruptions in supply, and that fuel distribution operations are continuing as usual.
Despite these reassurances, some areas have witnessed long queues of vehicles at petrol stations, with many consumers rushing to fill their tanks in anticipation of price hikes or shortages.
In his comment, the Chairman further highlighted that the necessary fuel stocks for the coming days have already been ordered, ensuring that the country will not face any supply interruptions.
He stressed the importance of remaining calm, as the fuel distribution system is operating as planned, with no disruptions expected.
In light of these reassurances, the CEYPETCO is urging consumers to refrain from panic buying, which has contributed to congestion at fuel stations in some regions.
The public is advised to purchase fuel as needed, and not in excess, to help maintain smooth operations and avoid unnecessary strain on the supply chain.
March 01, Colombo (LNW): The International Monetary Fund (IMF) on Friday (01) confirmed that it had completed the third review of Sri Lanka’s 48-month Extended Fund Facility (EFF) programme, unlocking an additional disbursement of SDR 254 million (approximately US$334 million).
This new allocation brings the total financial assistance provided to Sri Lanka under the current arrangement to SDR 1.02 billion (around US$1.34 billion).
According to the IMF, Sri Lanka’s performance under the EFF programme has remained strong, with the government meeting all key quantitative targets set for the end of December 2024.
However, the country missed the indicative target for social spending, which the IMF noted in its latest report.
In terms of structural benchmarks, most were either met or, in some cases, implemented with a slight delay. A notable achievement highlighted by the IMF was the successful completion of a bond exchange, which marks a significant step in Sri Lanka’s efforts to restore its debt sustainability.
The IMF also commended the Sri Lankan authorities for their ongoing reform programme, which has contributed to a steady economic recovery.
Despite these positive developments, the IMF stressed that the economy remains vulnerable and warned that the continuation of the reform agenda is crucial for achieving long-term recovery and ensuring the sustainability of the country’s debt.
The EFF arrangement, which was initially approved by the IMF’s Executive Board on March 20, 2023, amounts to SDR 2.286 billion (approximately US$3 billion or 395 percent of Sri Lanka’s quota in the IMF).
The programme is designed to support Sri Lanka’s efforts to stabilise its macroeconomic environment, reduce debt levels, protect the most vulnerable populations, rebuild external reserves, and implement growth-focused structural reforms, particularly in improving governance.
March 01, Colombo (LNW): Showers or thundershowers will occur at times in Eastern, Southern and Uva provinces and in Matale, Nuwara-Eliya and Polonnaruwa districts, the Department of Meteorology said in its daily weather forecast today (01).
Several spells of showers will occur in Northern province and in Anuradhapura district. Showers or thundershowers will occur at several places elsewhere during the afternoon or night.
Fairly heavy showers above 75 mm can be expected at some places in Uva province and in Batticaloa, Ampara, Matale, Nuwara-Eliya, Hambantota and Polonnaruwa districts.
Fairly strong winds of (30-40) kmph can be expected at times over North-central, Eastern and North-western provinces and in Matale and Nuwara-Eliya districts.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Mullaittivu to Colombo via Trincomalee, Batticaloa, Hambantota and Galle. Showers or thundershowers may occur at several places in the other sea areas around the island during the afternoon or Night.
Winds:
Winds will be north-easterly and speed will be (30-40) kmph. Wind speed can increase up to (45-50) kmph at times in the sea areas off the coast extending from Colombo to Trincomalee via Puttalam, Mannar and Kankasanthurai and from Galle to Hambantota via Matara.
State of Sea:
The sea areas off the coasts extending from Colombo to Trincomalee via Puttalam, Mannar and Kankasanthurai and from Galle to Hambantota via Matara will be fairly rough at times. Other sea areas around the island will be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
March 01, Colombo (LNW): Veteran Sri Lankan actress Susantha Chandramali has passed away.
Chandramali, who had been receiving treatments, was 61 years old at the time of her demise.
She was born in 1964 in Mulkirigala, Hambantota, Chandramali was well-known for her contribution as an actor in cinema and television dramas over the years.
The roles she played in teledramas “Muthupalasa”, “Charulatha”, “Denuwara Menike” and “Girikula Kande Gedara”, and movies “Saroja”, “Rankevita” and “Pravegaya” are quite notable and appraised.
February 28, Colombo (LNW): Sri Lanka is making significant strides in enhancing its digital economy, with a strong focus on data security and digital identity. As part of its modernization efforts, the government is actively pursuing the establishment of a sovereign cloud to safeguard sensitive data while ensuring compliance with global security standards.
This initiative aligns with broader digital transformation goals, including the introduction of a national digital identity system and a secure data exchange framework.
Recognizing the importance of secure digital infrastructure, Sri Lankan officials are engaging with both local and international stakeholders to develop a robust mechanism for cloud infrastructure participation. These efforts are expected to provide businesses and citizens with a safer and more reliable digital environment, fostering innovation and economic growth in the digital sector.
To ensure the highest levels of security, the government is in discussions with various stakeholders to conceptualize and implement a sovereign cloud. Sanjaya Karunasena, Director of the Information Communication Technology Agency of Sri Lanka (ICTA), stated that discussions are underway with qualified local and international players to establish a secure cloud framework that meets all necessary security standards.
He emphasized that maintaining sovereignty over national data is crucial, especially as Sri Lanka moves towards implementing a national digital ID system.
Karunasena further explained that a biometric-backed digital identity would offer a highly secure and reliable method for citizens to verify their identities online. However, he noted that rigorous security measures, including multiple validation layers and extensive testing, must be in place before the system is made available for public use.
The national data exchange, which will integrate with Sri Lanka’s sovereign cloud, was initially announced in February as part of this comprehensive digital strategy.
Addressing the security concerns associated with cloud infrastructure, Dr. Hans Wijesuriya, Chief Adviser to the President on Digital Economy and Secretary to the Ministry of Digital Economy, stressed the importance of implementing fundamental security measures before advancing further.
He noted that different types of data require varying levels of security assessments, and that the government will take a risk-based approach in designing these security frameworks.
Wijesuriya also highlighted the broader economic impact of the sovereign cloud initiative, particularly in enhancing business-to-business (B2B) interactions across borders.
By enabling seamless and secure digital transactions, the government aims to improve trade volumes and regional economic integration while ensuring citizen-centric digital services remain a top priority.
With these strategic initiatives, Sri Lanka is positioning itself as a leader in digital transformation, ensuring that technological advancements align with national security requirements and economic growth objectives.
February 28, Colombo (LNW): The Sri Lankan government is actively working to attract new Japanese investment as it seeks to repair strained diplomatic relations with Japan. In a recent meeting, President Anura Kumara Dissanayake engaged in discussions with Japanese Ambassador Akio Isomata, covering various bilateral interests and future collaboration.
During the meeting, the Ambassador extended an official invitation for President Dissanayake to visit Japan, expressing appreciation for the policy direction of the new administration. Japan is considering including Sri Lanka in its newly launched security cooperation assistance program, signaling a commitment to deeper engagement.
A significant focus of the discussions was the joint reconciliation initiative involving Japan, Switzerland, and South Africa, aimed at supporting northern communities affected by Sri Lanka’s 30-year civil conflict. Additionally, the two sides reviewed the status of Japanese investments in Sri Lanka, with special attention given to the digital economy and airport infrastructure.
Japan reaffirmed its commitment to Sri Lanka’s digital transformation efforts and expressed interest in funding port and aviation-related projects. Currently, around 60 Japanese-invested enterprises operate in Sri Lanka under the Board of Investment (BOI) framework, contributing approximately $350 million in cumulative investment and generating over 12,000 jobs. Beyond these major enterprises, several small-scale Japanese businesses are active in sectors like tourism, apparel, and export trading.
One of the key projects under scrutiny is the Jaya Container Terminal, initially funded by Japan in the 1980s and fully owned by the Sri Lanka Ports Authority. In 2019, India and Japan agreed to jointly invest $500-700 million in developing the East Container Terminal.
However, the Sri Lankan government later decided to keep full state ownership, leading to the project’s suspension. Political instability and economic crises between 2022 and 2023 further delayed several key initiatives, including a Japan International Cooperation Agency (JICA) loan worth $464 million for the expansion of Bandaranaike International Airport.
Despite these setbacks, Sri Lanka has now resumed efforts to rebuild its relationship with Japan. A recent development includes the collaborative effort between Sri Lanka, Japan, and India on the West Container Terminal, which will operate as a public-private partnership. Unlike previous projects, this model is expected to ensure more stability and efficiency, with the Sri Lanka Ports Authority and Japanese and Indian firms taking the lead.
Japan’s foreign direct investment (FDI) in Sri Lanka dates back to the 1970s, with the first major project being a joint venture between Noritake of Japan and the Ceylon Ceramics Corporation in 1972. Over the decades, Japanese investments have played a vital role in Sri Lanka’s industrial growth, particularly in electronics, ceramics, engineering, and metal industries.
Since 1996, major Japanese multinational corporations such as NTT, Mitsui Group, and YKK have invested in large-scale infrastructure and manufacturing ventures. Existing companies in ceramics and electronics, including Noritake Lanka Porcelain, Dankotuwa Porcelain, and FDK Lanka, have also expanded their operations in Sri Lanka through new investments.
As Sri Lanka’s new government takes steps to stabilize its economy and regain investor confidence, fostering stronger economic ties with Japan remains a priority. With renewed cooperation in key sectors, both nations are set to benefit from enhanced trade, investment, and infrastructure development.
February 28, Colombo (LNW): Top officials from the central banks of India and Sri Lanka recently held discussions to explore the potential of increasing the use of their local currencies, the Indian Rupee (INR) and the Sri Lankan Rupee (LKR), in cross-border transactions.
The discussions took place during a roundtable titled INR-LKR Trade Settlement: Strengthening Bilateral Economic Ties, organized amid India’s efforts to internationalize the INR.
India remains Sri Lanka’s largest trading partner, with annual bilateral trade exceeding $5.5 billion. India exports over $4 billion worth of goods to Sri Lanka, while Sri Lankan exports to India total around $1.5 billion.
In a bid to enhance trade efficiency, the Central Bank of Sri Lanka designated the INR as an authorized foreign currency in August 2022, facilitating easier banking transactions and reducing costs for small-scale traders.
Aditya Gaiha, Chief General Manager of the Reserve Bank of India (RBI), elaborated on the INR’s internationalization and the INR-LKR trade settlement mechanism at the roundtable.
He also highlighted key RBI policies allowing investments in INR within Sri Lanka and amendments to the Foreign Exchange Management Act (FEMA) aimed at expanding the use of INR in cross-border transactions.
Governor of the Central Bank of Sri Lanka, Nandalal Weerasinghe, emphasized the significance of this mechanism and urged banks to collaborate with policymakers to streamline the process.
This initiative aligns with commitments made during Sri Lankan President Anura Kumara Dissanayake’s recent visit to India, where he and Indian Prime Minister Narendra Modi reaffirmed their focus on strengthening INR-LKR trade settlements to deepen economic ties.
In a significant move, the RBI has further relaxed foreign exchange regulations to promote the use of the INR and other currencies in international transactions.
Indian exporters can now open foreign currency accounts overseas, receive payments in these accounts, and use them for import settlements.
This shift is expected to reduce costs for traders in both countries by eliminating intermediary bank charges and mitigating exchange rate risks.
Several Sri Lankan banks have already established INR-denominated Nostro accounts to facilitate direct transactions with Indian counterparts.
Additionally, Sri Lankans can now hold up to $10,000 worth of INR in physical form, though it remains a foreign currency rather than legal tender in Sri Lanka. This move provides much-needed liquidity support to the Sri Lankan economy..
The adoption of INR transactions aligns with India’s broader strategy to increase the Rupee’s usage among Asian nations and reduce dependency on the US dollar.
To support this mechanism, Sri Lankan banks are required to sign agreements with Indian banks to open INR Nostro accounts. Additionally, offshore banking units (OBUs) in Sri Lanka have been authorized to accept deposits from non-residents, further facilitating trade and investment.
While the INR’s growing role in Sri Lanka’s economy has led to speculation that it might replace the LKR in certain sectors, experts believe full currency substitution could impact Sri Lanka’s national sovereignty.
However, the stability of INR could attract foreign investors and reduce balance of payment risks for Sri Lanka, similar to how Bhutan and Nepal use the INR for trade due to their close economic ties with India.
February 28, Colombo (LNW): Bank of Ceylon (BOC) has reported impressive financial results for 2024, demonstrating resilience and strategic adaptability. The bank saw substantial growth in key financial indicators, including assets, deposits, and profitability, despite economic challenges and market fluctuations.
BOC’s General Manager/CEO, Russel Fonseka, highlighted the bank’s strength and stability in a challenging economic climate, emphasizing its commitment to expanding services, driving digital banking solutions, and maintaining its leadership in Sri Lanka’s banking sector. Chairman Kavinda de Zoysa reaffirmed BOC’s commitment to sustainable growth, risk management, and strong governance, reinforcing its status as the country’s largest financial institution.
Financial Performance and Profitability
BOC demonstrated its financial resilience by strategically adjusting its assets and liabilities, resulting in an 84% increase in net interest income to Rs. 167.6 billion from Rs. 91.2 billion in 2023. Although interest income declined by 12% due to a relaxed monetary policy, the 32% reduction in interest expenses helped bolster net interest income, underscoring improved profitability.
Net fee and commission income rose 17% year-over-year (YoY) to Rs. 20.6 billion, driven by increased card transactions, retail banking services, and digital banking adoption. Trading activities contributed Rs. 3.4 billion in net gains, highlighting the bank’s strong market strategies despite exchange losses due to LKR appreciation.
BOC took proactive measures to mitigate credit risks, implementing targeted management overlays to address sectoral vulnerabilities. Despite recording an impairment charge of Rs. 12.4 billion for loans and advances, a net reversal of Rs. 32.8 billion was recognized following debt restructuring. However, ISB restructuring resulted in a net impact of Rs. 14.1 billion on the bank’s profits.
Operational Efficiency and Growth
Total operating income surged 81% to Rs. 182.0 billion, driven by improvements across all income streams. Operating expenses rose by 28% to Rs. 67.1 billion, primarily due to a 35% increase in personnel costs and 21% higher overhead expenses. Despite this, the cost-to-income ratio improved to 40%, reflecting enhanced efficiency.
BOC’s operating profit before taxes on financial services soared by 155% to Rs. 135.3 billion. After taxes, profit before tax (PBT) stood at Rs. 106.9 billion, marking a 165% increase from 2023. The bank contributed significantly to the national economy, paying Rs. 70.9 billion in taxes, leading to an effective tax rate of 52% and a net profit of Rs. 64.4 billion.
Strengthening Assets and Deposits
As of December 31, 2024, BOC’s total assets reached Rs. 4,985.1 billion, with the group’s assets totaling Rs. 5,048.7 billion, a 13% YoY growth. The bank’s deposits grew 8% to Rs. 4,208.6 billion, reflecting strong customer confidence. Despite a 1% drop in gross loans to Rs. 2,436.2 billion due to LKR appreciation and subdued credit demand, the bank remained well-positioned for future growth.
The bank also raised Rs. 15.0 billion through Basel III-compliant Tier II capital issuance to strengthen its capital base. Key financial ratios showcased improved performance, with Return on Assets (ROA) before tax increasing to 2.28% from 0.92% and Return on Equity (ROE) after tax rising to 23.23% from 10.55%. The bank maintained a strong capital adequacy position with a Common Equity Tier 1 ratio of 11.97% and a Total Capital Ratio of 16.55%, well above regulatory requirements.
Social Impact and Recognition
BOC continued to support economic development through various initiatives. The ‘BOC Youth Loan Scheme’ facilitated employment and innovation, while the ‘BOC Ranliya Loan Scheme’ empowered women entrepreneurs with loans up to Rs. 100 million. Other initiatives focused on MSMEs, rural development, and financial inclusion, particularly through digital banking services for vulnerable groups.
Additionally, BOC partnered with Sri Lanka Post to expand financial services across underserved communities. These efforts contributed to the bank being named ‘Bank of the Year Sri Lanka 2024’ by The Banker magazine and securing a position in the Top 1,000 World Banks list.
Future Outlook
As Sri Lanka’s largest financial institution, BOC remains committed to leveraging technology, driving economic stability, and fostering sustainable growth. With a focus on enhancing customer experiences and strengthening governance, the bank is strategically positioned to navigate evolving economic conditions while maintaining its leadership in the financial sector.
