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WEATHER FORECAST FOR 27 JUNE 2026

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Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara, Batticaloa and Mullaitivu districts after 2.00 p.m.

Fairly strong winds about (30-40) kmph can be expected at times over Western slopes of the central hills, North-central, North-western and Southern provinces and in Trincomalee district.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

Tariff Threats and Global Competition Test Apparel Industry’s Future

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Sri Lanka’s apparel industry, long regarded as the backbone of the country’s manufacturing exports, is facing one of its most complex periods in recent years. While export earnings showed signs of recovery in 2026, growing international competition and looming trade barriers threaten to undermine the sector’s hard-earned gains.

According to industry data released by the Joint Apparel Association Forum (JAAF), apparel and textile exports rose by 7.96 percent in May 2026 to US$394.14 million, marking the strongest monthly performance recorded this year. The United States remained the industry’s largest market, with exports increasing by 15.36 percent to US$149.96 million. Shipments to emerging markets outside the traditional destinations of the United States, European Union and United Kingdom also expanded by 14.61 percent to US$70.67 million.

Despite this encouraging monthly performance, the broader picture remains challenging. During the first five months of 2026, cumulative apparel exports fell by 4.68 percent to US$1.93 billion, reflecting weak demand and persistent global economic uncertainty. The European Union, United Kingdom and United States all remained in negative territory on a year-to-date basis.

The industry’s most pressing concern is its competitiveness in the United States market. Sri Lanka is currently under scrutiny in a U.S. trade review concerning forced labour regulations. Proposed tariffs of 12.5 percent on Sri Lankan exports would place the country at a disadvantage compared with key competitors such as Bangladesh, Pakistan, Cambodia and Indonesia, which are expected to face lower tariff rates.

The implications are significant. The United States accounts for nearly 40 percent of Sri Lanka’s apparel exports and remains the single most important destination for locally manufactured garments. Any tariff disparity could encourage international buyers to shift orders to lower-cost manufacturing hubs, intensifying pressure on Sri Lankan exporters already grappling with rising production costs.

Competition is also growing across Asia. Bangladesh continues to dominate the global value segment through low-cost production, while Vietnam benefits from extensive trade agreements and modern manufacturing capabilities. India is aggressively expanding its apparel export capacity through infrastructure development and policy reforms, positioning itself as another formidable rival.

Hitherto Sri Lanka retains several advantages. The country has built a global reputation for ethical manufacturing, compliance with labour standards, product quality and reliability. International brands continue to source from Sri Lanka because of its strong sustainability credentials and ability to produce high-value garments.

Industry leaders argue that favourable trade policies, improved market access and continued investment in innovation will be crucial if Sri Lanka is to maintain its position in the global apparel supply chain. The outcome of ongoing negotiations with U.S. authorities could determine whether the recent export rebound becomes the beginning of a sustained recovery or merely a temporary respite in an increasingly competitive international marketplace.

Kunming Trade Push Signals Expanding Sri Lanka–China Economic Ties

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Sri Lanka’s strong presence at the 10th China–South Asia Exposition and the 30th China (Kunming) Import and Export Fair has once again highlighted the growing importance of China as one of Colombo’s most significant economic partners. The six-day event, held in Kunming in June 2026, attracted one of the largest Sri Lankan business delegations ever sent to China, demonstrating the country’s increasing reliance on the Chinese market for trade expansion and investment opportunities.

Led by Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, the delegation included government officials and more than 250 business representatives from nearly 100 export companies. Their participation reflected Sri Lanka’s efforts to diversify export destinations and capitalize on China’s vast consumer market.

The Sri Lanka Pavilion, comprising 100 exhibition booths, showcased a broad range of products, including Ceylon tea, spices, gems, jewellery, apparel, seafood, coconut-based products, handicrafts and wellness services. Organizers reported strong buyer interest, with several participating companies securing sales and initiating discussions on long-term distributorships and export contracts.

A key outcome was the signing of a Memorandum of Understanding between a Sri Lankan beverage exporter and a major Chinese liquor distribution company, highlighting the potential for niche Sri Lankan products to penetrate China’s highly competitive market. Business-to-business matchmaking sessions organized by Yunnan provincial authorities also facilitated direct engagement between entrepreneurs from both countries.

Supporters of deeper Sri Lanka–China economic engagement argue that such events provide crucial access to one of the world’s largest consumer economies. China offers Sri Lankan exporters opportunities to move beyond traditional Western markets while attracting much-needed foreign investment, technology transfer and industrial cooperation. Participation in seminars involving universities, research institutions and industries further underscored prospects for innovation partnerships and knowledge exchange.

However, analysts caution that expanding economic relations with China also presents challenges. Despite growing exports, Sri Lanka continues to face a significant trade imbalance with China, importing far more than it exports. Critics argue that trade fairs and investment agreements must ultimately translate into sustainable export growth rather than symbolic diplomatic achievements.

There are also concerns about excessive dependence on a single economic partner. Past Chinese-funded infrastructure projects in Sri Lanka have generated debate over debt sustainability, transparency and long-term economic returns. Some economists warn that while Chinese investment can stimulate growth, Sri Lanka must carefully evaluate projects to ensure they generate employment, foreign exchange earnings and broader economic benefits.

The Kunming exposition nevertheless demonstrated that both countries remain committed to strengthening commercial ties. The challenge for Sri Lanka lies in converting exhibition successes into measurable export growth while maintaining a balanced and diversified foreign economic policy. If managed effectively, stronger engagement with China could support economic recovery and industrial development. If not, concerns over dependency and trade imbalances may continue to shadow the relationship.

Middle East War Tests Sri Lanka’s Recovery Gains

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Sri Lanka’s fragile economic recovery is facing its biggest external challenge since the 2022 crisis, with the conflict in the Middle East threatening vital sources of foreign exchange, tourism earnings and remittances, according to IMF Resident Representative Martha Tesfaye Woldemichael.

The IMF official described the conflict as a “major external shock” for Sri Lanka because of the country’s deep economic links with the region. Nearly half of Sri Lanka’s petroleum imports originate from the Middle East, while about 40 percent of remittances flow from Sri Lankan workers employed there. The region also serves as a key aviation hub for tourists travelling to the island.

The impact was immediate. Fuel prices surged, tourist arrivals weakened and inflationary pressures intensified.

However, unlike during the economic collapse four years ago, Sri Lanka now possesses stronger economic buffers. Woldemichael credited reforms undertaken under the IMF-backed Extended Fund Facility (EFF) programme for improving fiscal stability and external sector resilience.

The government has already responded with a temporary relief package covering fuel, electricity, fertiliser and vulnerable households. The package, capped at Rs.100 billion and scheduled to expire in September 2026, has been endorsed by the IMF as a targeted and time-bound intervention.

Recognising the challenges posed by the conflict, the IMF has also adjusted key programme targets. The primary budget surplus target for 2026 has been lowered from 2.3 percent to 1.4 percent of GDP, while reserve accumulation targets have also been relaxed to reflect slower How ever

the IMF warns that flexibility should not be mistaken for a retreat from reforms.“The breathing space exists, but it must be used wisely,” Woldemichael stressed, emphasising that Sri Lanka remains committed to restoring the original fiscal targets from 2027 onward.

The IMF also raised concerns about growing calls for fresh import restrictions amid pressure on foreign reserves. Vehicle imports generated extraordinary tax revenues equivalent to 2.8 percent of GDP in 2025 and helped push the country’s primary surplus to an impressive 5.4 percent of GDP. However, rising vehicle imports have also increased demand for dollars and contributed to pressure on the rupee.

While the government recently increased customs duties on selected vehicles from 30 percent to 45 percent, the IMF cautions against broader import controls.

According to Woldemichael, such measures may provide temporary relief but risk undermining commitments made under the IMF programme. Instead, the Fund advocates allowing the exchange rate to function as a natural shock absorber while pursuing structural reforms.

Despite current headwinds, the IMF remains optimistic about Sri Lanka’s progress. Economic growth rebounded to 5 percent in 2025 after the severe contraction of 2022, while inflation, which once approached 70 percent, fell to 5.5 percent in May 2026. Official reserves climbed to US$6.9 billion, tax revenue reached its highest level in a decade and public debt declined significantly following restructuring efforts.

Still, with one in four Sri Lankans remaining below the poverty line and global uncertainties mounting, the IMF says the next phase of recovery will depend on sustaining reforms that convert stability into lasting growth and jobs.

Fueling Export Ambitions through Petroleum, Logistics, and Ports

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Sri Lanka is seeking to transform its petroleum sector from a domestic energy supplier into a major export revenue generator, with policymakers increasingly viewing petroleum-based products, bunkering services, and logistics operations as critical pillars of the country’s ambitious export expansion strategy.

Export Development Board (EDB) Chairman Mangala Wijesinghe recently outlined plans to raise Sri Lanka’s annual export earnings from approximately US$17.2 billion recorded in 2025 to US$36 billion within the next several years. Achieving such a target would require the country to identify new high-value export streams beyond traditional sectors such as apparel, tea, and rubber products.

At the centre of the strategy is Sri Lanka’s strategic location along one of the world’s busiest maritime routes. Authorities believe the island can capitalize on its position by developing petroleum-related exports, including marine fuel supply, petroleum blending, storage, refining, and re-export activities.

Discussions involving the Board of Investment, the Ministry of Industry and Entrepreneurship Development, the Ceylon Petroleum Corporation, and other stakeholders have reportedly produced several proposals aimed at attracting investment into petroleum-linked industries. Officials argue that value-added petroleum exports could help diversify foreign exchange earnings while strengthening Sri Lanka’s standing as an Indian Ocean logistics hub.

The timing is significant. Sri Lanka’s overall export sector has shown resilience despite global economic uncertainties. According to EDB estimates, total export earnings reached US$17.25 billion in 2025, representing a 5.6 percent increase from the previous year.

During the first four months of 2026, exports exceeded US$5.78 billion, recording further growth despite a sluggish global trade environment. Petroleum products continue to be included among Sri Lanka’s notable export categories, although precise sector-specific earnings remain relatively modest compared with apparel and ICT services.

However, industry observers note that the petroleum export vision faces several structural obstacles. Sri Lanka remains heavily dependent on imported crude oil and refined fuel. Unlike regional competitors such as Singapore, the country lacks large-scale refining capacity capable of generating significant export surpluses. The ageing Sapugaskanda refinery requires modernization, while investment in downstream petrochemical industries remains limited.

Another challenge is policy consistency. Investors have repeatedly expressed concerns over regulatory uncertainty, delays in approvals, and lengthy procurement processes. While the National People’s Power (NPP) administration has pledged transparency and institutional reform, potential investors continue to seek clearer guidelines regarding energy sector liberalization and long-term investment incentives.

Moreover, transforming Sri Lanka into a petroleum export hub will require substantial capital investment in storage facilities, pipelines, bunkering infrastructure, and port connectivity. Without these upgrades, experts warn that ambitious export targets may remain aspirational rather than achievable.

The Government’s petroleum export strategy offers considerable promise. Yet success will ultimately depend on whether policymakers can convert strategic geography into tangible infrastructure, attract large-scale investment, and deliver reforms quickly enough to compete with established regional energy hubs.

State hospitals to receive four new cardiac cath labs worth Rs. 1.2 billion

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Sri Lanka’s state hospital system will receive four advanced cardiac catheterisation laboratory (cath lab) units within the next week as part of efforts to strengthen cardiac care services and reduce patient waiting times.

The Ministry of Health and Mass Media said the initiative is being implemented under the direction of Health and Mass Media Minister Dr. Nalinda Jayatissa to modernise and expand heart care services in the country.

Each cath lab is valued at approximately Rs. 300 million, bringing the total investment to Rs. 1.2 billion.

According to the ministry, one unit will be installed at the Jaffna Teaching Hospital on June 27, another at the Colombo South Teaching Hospital in Kalubowila on June 30, while two additional units will be installed at the National Hospital of Sri Lanka in Colombo on July 2.

The new facilities will be equipped with Canon Alphenix Core+ Evolve Edition cardiac catheterisation systems featuring artificial intelligence-based real-time imaging technology, which is designed to improve procedural accuracy while reducing radiation exposure.

Cath labs are specialised medical facilities used to diagnose and treat heart and blood vessel diseases. They support procedures including coronary angiography, angioplasty, coronary stent placement, heart valve interventions, electrophysiology studies and the treatment of abnormal heart rhythms.

The ministry said the advanced systems will enable doctors to perform faster, safer and minimally invasive procedures, reducing the need for open-heart surgery in many cases.

The equipment also includes DDS technology, a live three-dimensional stent visualisation system that provides detailed imaging during procedures without requiring additional scans, helping to reduce both radiation exposure and procedure times.

Officials said the new systems will also improve workflow by enabling clinicians to access multiple imaging sources and patient information through a single display, supporting faster and more accurate clinical decision-making.

The Ministry expects the addition of the four cath labs to significantly improve access to advanced cardiac care and shorten waiting lists for diagnosis and treatment in the state hospital system.

President: Corrupt will face justice; PTA to be repealed this year

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President Anura Kumara Dissanayake says the Government is committed to bringing those responsible for fraud and corruption involving public property before the law, stressing that no crime will be allowed to “be buried in the sands of time.”

Speaking during the Adjournment Debate on Combatting the Drug Menace in Parliament yesterday (25), the President said the mandate given to his administration was to build a “civilised state” founded on justice, accountability and the rule of law.

He said the Government would not pursue personal vendettas, but would ensure that everyone—from the President to the most junior public official—remains accountable under the law.

President Dissanayake also announced that the Prevention of Terrorism Act (PTA) will be repealed within this year, with final discussions on the replacement legislation already concluded.

He said the new law would focus solely on preventing terrorism, while a separate Organised Crime Act with clear legal definitions would be introduced to combat organised criminal networks without undermining fundamental rights or democratic freedoms.

The President said the broad provisions of the PTA had previously allowed for abuse against political opponents and stressed that the new legal framework would prevent such misuse.

He also outlined the Government’s efforts to dismantle organised criminal gangs and drug trafficking networks, arguing that the problem extends beyond criminals themselves to include corruption within state institutions and political patronage.

According to the President, 23 individuals subject to Interpol Red Notices have been extradited to Sri Lanka, while a further 35 suspects linked to drug trafficking have also been arrested and brought back to the country.

He said the Government has also introduced stricter prison measures, including the establishment of a new high-security prison facility at Welisara designed to prevent inmates from directing criminal activities from behind bars.

President Dissanayake defended the work of officials leading investigations into organised crime and corruption, including Criminal Investigation Department Director Shani Abeysekara, Bribery Commission Director General Ranga Dissanayake, Public Security Ministry Secretary Ravi Seneviratne, Minister Ananda Wijepala and Attorney General’s Department official Dileepa Peiris, saying they had become targets of political criticism because of their efforts.

He also said investigations into major cases—including the murders of journalist Lasantha Wickrematunge and rugby player Wasim Thajudeen, the assault on several journalists, and the Easter Sunday attacks—must continue without political interference.

The President further claimed that investigations had identified large-scale foreign currency outflows linked to corruption and illicit funds, alleging that advance payments amounting to nearly US$1 billion had been transferred overseas without goods being imported.

He said the Government had introduced new regulations to curb such transactions and was investigating the involvement of several bank branches.

The President reiterated that the Government’s objective is to strengthen investigative institutions, recruit additional legal personnel, establish new High Courts to expedite cases, and ensure justice is delivered through the judicial system.

Death toll rises to 188 after two earthquakes struck Venezuela

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Two powerful earthquakes struck Venezuela on Wednesday evening, causing widespread destruction in and around the capital, Caracas, with hundreds confirmed dead and thousands feared trapped beneath collapsed buildings.

According to the United States Geological Survey (USGS), a magnitude 7.2 earthquake struck approximately 160 kilometres west of Caracas, followed less than a minute later by a magnitude 7.5 tremor—the country’s strongest earthquake in more than a century.

The twin earthquakes hit a nation already struggling with years of economic hardship, leaving vulnerable infrastructure and complicating rescue and recovery operations.

Emergency crews worked through the night searching for survivors beneath the rubble of collapsed buildings, while residents in some areas complained of delays in receiving assistance.

Jorge Rodriguez, head of Venezuela’s National Assembly and brother of interim President Delcy Rodriguez, said at least 188 people have been confirmed dead, while around 200 people remain trapped.

He added that 1,520 people were injured and more than 250 buildings were damaged or destroyed in the disaster.

The worst-hit area was La Guaira state, near Caracas, which President Delcy Rodriguez described as “a disaster zone.”

She said the government is working with private companies to deploy heavy machinery and accelerate search-and-rescue operations as authorities race to locate survivors.

Rescue efforts are continuing amid concerns that the death toll could rise significantly as teams gain access to heavily damaged areas.

Namal Rajapaksa Urges Government to Focus on Cost of Living, Not Arrests

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Sri Lanka Podujana Peramuna (SLPP) MP Namal Rajapaksa has called on the government to prioritise addressing the rising cost of living, arguing that the public is more concerned about increasing household expenses than comments on arrests, investigations and court cases.

In a statement, Rajapaksa criticised President Anura Kumara Dissanayake for commenting on potential arrests and legal proceedings in Parliament, saying the President should not appear to be directing the Police, the Criminal Investigation Department (CID) or the judiciary.

“If there are cases, let the law take its course. We are ready to face any investigation and any legal process because we have faith in the justice system,” he said.

Rajapaksa said the government’s primary focus should be on easing the financial burden faced by families across the country, citing the continued rise in the cost of living.

He also alleged that the administration, despite being elected on promises of clean governance, is now facing serious corruption allegations. Rajapaksa questioned the response of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to claims involving members of the government.

He urged the President to concentrate on tackling the country’s economic challenges and addressing public concerns over corruption rather than commenting on arrests and court proceedings.

O/L re-scrutiny applications open until July 8

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The Ministry of Education has announced that applications for the re-scrutiny of the 2025 (2026) G.C.E. Ordinary Level (O/L) examination results will be accepted from June 25 to July 8.

Both school and private candidates must submit their applications online individually through the Department of Examinations website (www.doenets.lk). Applications submitted through any other method will not be accepted.

Candidates should visit www.doenets.lk, select the “Exam Information Centre” under “Our Services”, and complete the application. Existing users can log in using their examination number and National Identity Card (NIC) number, while new users must register with their NIC number and mobile phone number.

The Department has advised applicants to carefully read the technical and general instructions and watch the instructional video before submitting the application.

The re-scrutiny fee is Rs. 200 per subject and can be paid using a credit card, debit card, or at post offices. After payment, candidates should download and retain the application in PDF format. An SMS confirmation will also be sent.

The Department noted that candidates may submit the online application only once, and the fee is non-refundable after payment.

For further information, candidates can contact the 1911 hotline or 0112 785 231.