By: Staff Writer
October 19, Colombo (LNW): Sri Lanka’s ambitious plan to build a China National Petroleum Corporation (“Sinopec”)-backed oil refinery in the southern port city of Hambantota has entered a critical phase of gridlock, exposing a tangle of strategic and commercial challenges behind the touted US $3.7 billion investment.
Announced formally in January 2025, the project envisages a 200,000-barrel-per-day (bpd) greenfield facility, making it the largest foreign-direct-investment (FDI) venture in Sri Lankan history.
Land has reportedly been allocated and initial infrastructure push-forward underway, yet final investment agreements and construction commencement remain unscheduled.
At the heart of the delay is a dispute over domestic market access, equity structure, and export quotas. Initially the government insisted that only 20 % of output be sold domestically and 80 % earmarked for export. Sinopec, however, seeks a higher proportion for local sales, citing commercial viability.
The mismatch in expectations has triggered a negotiation stalemate.On top of commercial wrangling, the project sits amid a broader strategic contest: India, China and Sri Lanka’s Western partners are all vying for influence in Sri Lanka’s rapidly evolving energy and infrastructure landscape.
For China, the Hambantota port and adjacent refinery represent a toehold in the Indian Ocean energy-supply chain. For India, the project raises concerns of strategic entrenchment near its maritime periphery.
Sri Lankan officials publicly emphasise that most “major issues” — such as land, water and tax clearances have been resolved. Foreign Minister Vijitha Herath met with Sinopec Vice President Liu Liangong in recent weeks to “expedite the remaining hurdles”.
Yet, insiders warn of latent political risk: the government remains under pressure to balance foreign-investment openings with national economic sovereignty. A local energy-industry source described the state’s approach as “cautious rather than eager”.
Critics point to Sri Lanka’s previous heavy debt accumulation tied to Chinese infrastructure, notably the Hambantota port lease, as a cautionary backdrop. The refinery now reignites debate over whether major Chinese FDI carries long-term strategic strings.
Analysts note that if the refinery becomes fully operational, its impact could be transformative. Estimates suggest annual export revenues of US $6–8 billion, plus reduced import-bill burdens for refined fuels.
But for now the project remains suspended in limbo.It is not just Sinopec’s patience being tested: Sri Lanka’s ability to attract and structure mega-projects in a politically sensitive environment is being scrutinised. With global competitors queuing up, any further delay could push Sri Lanka into the margins of the very global investment recovery wave it hopes to ride.
Geopolitics and Commercial Clashes Delay Sri Lanka’s $3.7 B Sinopec Refinery
Colombo’s Port City Crosses Major Infrastructure Milestone
By: Staff Writer
October 19, Colombo (LNW): The $1.4 billion Port City Colombo reclamation project has now reached a defining moment with the completion of its first infrastructure phase, officials announced yesterday. This milestone marks the transformation of the 269-hectare artificial island into Sri Lanka’s most ambitious urban and economic development.
Phase 1 covers critical infrastructure links, including connection of electricity and water supply systems to the existing city grid and integration of wastewater drainage networks with the mainland.
“This milestone marks an essential step in the progress of Port City Colombo and ushers in the next stage of development and future investments,” said Harsha Amarasekera, Chairman of the Colombo Port City Economic Commission (CPCEC).
According to the CPCEC, the project has already benefited from an investment of around US $1.4 billion by developer China Harbour Engineering Company (CHEC) and its parent China Communications Construction Company (CCCC). These investments make Port City Colombo one of Sri Lanka’s largest foreign-direct-investment ventures to date.
Looking ahead, the overall investment value of the development is projected at up to US $20 billion when fully developed, featuring over 6.3 million m² of built-up space and housing a projected population of around 273,000.
Despite delays the project originally commenced land reclamation in 2014 and the finishing of this phase took longer than expecte government officials say the completion now arrives at a time of renewed investor confidence in Sri Lanka’s economy.
The Finance Ministry’s Secretary, Harshana Suriyapperuma, noted “while the completion of Phase 1 took longer than expected, it marks a defining opportunity for Sri Lanka to demonstrate its potential as a destination for better foreign investments, business, trade, tourism and lifestyle.”
Project Director, Udaya Nanayakkara (Retd Major General), said the master-plan emphasises sustainability and livability: a “walkable city” with reduced traffic emissions, a clear road hierarchy, and underground utility networks. The 12-kilometre internal road network will link the city’s northern and southern ends seamlessly, positioning the island as a central South Asian hub.
Now that Phase 1 is complete, the focus shifts to attracting anchor investors for commercial, residential and lifestyle developments within the Special Economic Zone (SEZ). Four major projects were recently granted “Primary Business of Strategic Importance” status, unlocking incentives and visa-facilitated investment into real-estate, finance, and tourism.
However, analysts caution that despite the projections, the bulk of future investment hinges on global economic conditions, domestic regulatory clarity, and delivering infrastructure on cost and schedule. With household incomes in Sri Lanka still under pressure, ensuring tangible yields from such mega-projects remains a challenge.
For now, Port City Colombo’s infrastructure milestone sets the stage for Sri Lanka’s next chapter one where reclaimed land, deep-water location and strategic connectivity are meant to converge into a high-end urban-lifestyle and business hub.
Sri Lankan Cardholders Trapped in Costly Cycle of Hidden Fees and High Debt
By: Staff Writer
October 19, Colombo (LNW): Sri Lankan credit- and debit-card users are facing mounting financial pressure as invisible charges, steep interest rates and surging card debt converge amid high living costs and low incomes. Despite directives from the Central Bank of Sri Lanka (CBSL), many cardholders find themselves caught in a punishing financial trap.
Banks charge annual interest rates on credit-card purchases as high as around 20 percent, and up to 26 percent for cash advances—far above the policy rate of 7.75 percent. On top of this, surcharges of 2.5–3 percent are still routinely passed onto customers by merchants when payments are made by card. Since these are often calculated on tax-inclusive prices, consumers end up paying a “tax on tax” in effect.
The emerging scale of the problem is stark. By August 2024, total outstanding credit-card debt at licensed commercial banks stood at Rs. 150.6 billion, up by Rs. 942 million in that month alone.
The number of active credit-cards has climbed as well: by April 2024 there were 1,914,126 in use, though the figure edged up just marginally from end of December 2023.
Consumer advocates say these numbers undershoot the anguish faced by many cardholders whose monthly incomes are squeezed and whose living-costs are rising. One recent study reported that although active card numbers were under 2 million, the value of defaulted cards as of Q2 2024 was Rs. 20.7 billion even though the number of defaulted accounts fell slightly to 168,978.
On top of high interest and surcharges, card users face ATM withdrawal fees (especially at machines of other banks), foreign-exchange mark-ups, and stamp duties embedded in overseas cards. For instance, some “Gold” credit-cards levy Rs. 25 for every Rs. 1,000 spent abroad, in addition to currency conversion costs.
A significant government reform is under review: the Ministry of Finance, Sri Lanka has confirmed it is considering a proposal from the Ministry of Digital Economy, Sri Lanka to eliminate extra fees on card transactions. Initial consultations have been held with the CBSL and the Inland Revenue Department of Sri Lanka to assess how to cover losses borne by consumers. The reform forms part of a broader push towards a fully cash-less economy, routing payments through QR-based mobile systems.
Yet until reforms take effect, millions of Sri Lankans with cards will continue to bear the brunt of hidden costs and high-interest debt. With many households already living on tight margins, the combination of surcharges, interest and default risk poses a growing threat to household financial stability.
Sri Lanka to Field Record-Breaking Squad at Asian Youth Games in Bahrain
October 19, Colombo (LNW): Sri Lanka is preparing to make a historic appearance at the upcoming Asian Youth Games (AYG), with the island nation set to send its largest-ever delegation to the continental multi-sport event, taking place in Bahrain from October 22 to 31.
A total of 150 individuals will represent the country, including a record 100 young athletes—56 boys and 44 girls—who will compete across 12 disciplines. The athlete group will be supported by a team of 31 sport-specific officials and 19 members from the wider national delegation.
The young Sri Lankan competitors will take part in athletics, badminton, 3×3 basketball, boxing, esports, golf, kabaddi, swimming, taekwondo, beach volleyball, weightlifting, and wrestling—highlighting the growing breadth of youth sport development on the island.
Flying the national flag at the Opening Ceremony will be two standout athletes: Janidu Dhananjaya, the country’s top-ranked Under-16 boxer in the 52kg weight class, and Dilini Nethsala, a rising star in the long jump. Their selection as flag-bearers reflects both promise and performance in their respective fields.
This year’s participation comes with added significance as it marks the first time the National Olympic Committee of Sri Lanka (NOCSL) will offer a daily allowance to athletes during an international youth event—a progressive step aimed at recognising their commitment and easing financial burdens on young sportspeople and their families.
Sri Lanka’s track record at the AYG includes a modest but meaningful medal haul. At the most recent edition in Nanjing in 2013, Sri Lankan athletes earned six medals, including a silver in the men’s 110m hurdles. The inaugural Games in Singapore in 2009 saw the country take home three medals, one of which was silver in the men’s 4x200m relay.
Yevan David Makes History with Rookie Title Win in Euroformula Open
October 19, Colombo (LNW): Young Sri Lankan racing driver Yevan David has etched his name into the record books by becoming the first Sri Lankan to clinch the Rookie Championship title in the prestigious Euroformula Open series.
The landmark achievement came during the penultimate round of the championship, held at the iconic Monza circuit in Italy. David secured the rookie crown after finishing second in the weekend’s second race, capping off a high-pressure weekend with a composed and strategic drive.
The weekend began with a fierce contest in the opening race, where David started from pole position. He found himself in a tight three-way battle with his Motopark teammate Everett Stack and Mexico’s Jose Garfias. Despite a shredded rear-left tyre in the final lap—an incident that nearly derailed his podium hopes—David managed to bring the car home in sixth place. That finish, however, earned him the reversed-grid pole for the next day’s race.
In Race Two, David showed maturity beyond his years, defending strongly and maintaining a steady pace to secure second place at the chequered flag. That result not only earned him the rookie title but also elevated him to second place in the overall drivers’ standings, edging past South Korea’s Michael Shin. Poland’s Tymek Kucharczyk continues to lead the championship.
David’s breakthrough season in European single-seater racing has captured the attention of motorsport enthusiasts back home and across the continent. His consistent performances, sharp racecraft, and resilience under pressure have marked him as a rising talent to watch in the international racing scene.
Vietnamese Buddhist Delegation from the US Begins Spiritual Tour of Sri Lankan
October 19, Colombo (LNW): A group of 86 Vietnamese Buddhist monks, nuns, and lay followers based in the United States arrived in Sri Lanka on Friday (17), to embark on a week-long spiritual and cultural pilgrimage.
The delegation is being led by Venerable Thien Thero, the abbot of the Lien Hoa Buddhist Temple in San Antonio, Texas, and is visiting the island under the spiritual guidance of Venerable Udumule Saranapala Thero, a Royal Pandita and senior teacher affiliated with the same temple.
During their stay, the group is expected to engage in a number of religious and cultural activities aimed at deepening their understanding of Sri Lanka’s Theravāda Buddhist traditions. A key part of their itinerary includes formal audiences with the Most Venerable Maha Nayaka Theros of the Malwatta and Asgiri Chapters in Kandy, as well as spiritual leaders of the Atamasthana—the sacred eight sites of Anuradhapura.
In addition to these ceremonial engagements, the visitors will take part in religious observances and offer alms and educational assistance to local monastics. The delegation is also scheduled to visit several iconic heritage sites such as the Temple of the Tooth Relic in Kandy, the ancient ruins of Anuradhapura, the rock fortress of Sigiriya, and the Dambulla cave temple complex.
Venerable Saranapala Thero explained that the journey is not only a pilgrimage, but also a gesture of spiritual solidarity with Sri Lanka’s monastic community, with the broader goal of fostering global Theravāda unity and supporting the continued revival of Buddhist practice in the region.
Sri Lanka Secures $100 Million ADB Loan to Strengthen Secondary Healthcare System
October 19, Colombo (LNW): Sri Lanka has finalised a new financial agreement with the Asian Development Bank (ADB), securing a loan of US$ 100 million aimed at strengthening the country’s healthcare infrastructure, with a particular focus on improving secondary-level medical services.
The initiative forms part of a broader effort to ensure equitable access to quality healthcare under the government’s commitment to universal health coverage.
The loan has been extended through ADB’s Ordinary Capital Resources and will directly support a national health development programme designed to improve the efficiency, reach, and responsiveness of the public health system—especially in areas serving as the first point of referral for patients beyond primary care.
According to the Ministry of Finance, the project will centre on three key areas: enhancing the delivery of first referral care services, building robust systems for pandemic prevention and emergency response, and improving technical capabilities within the health sector, including more effective management of the pharmaceutical supply chain.
In addition to the main loan facility, the programme will receive a supplementary grant of US$ 6.9 million from the ADB-managed Pandemic Prevention, Preparedness and Response Trust Fund, further boosting the capacity of Sri Lanka’s healthcare system to respond to future health emergencies.
The agreement was formally signed by Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Sri Lankan government, while Takafumi Kadono, ADB’s Country Director, represented the lending institution.
Officials involved in the project noted that the programme will play a critical role in bridging the gap between primary care and specialised hospital services, while also helping modernise health infrastructure and workforce training in line with global standards. Implementation is expected to be carried out in phases across multiple provinces, with particular attention to underserved and rural areas.
Hulftsdorp Court Murder: Police Granted 90-Day Detention Order for Ishara Sewwandi
October 19, Colombo (LNW): Sri Lankan authorities have secured official clearance to detain and question Ishara Sewwandi—a key suspect in a high-profile underworld murder case—for a period of 90 days.
The Ministry of Defence approved the extended detention period following a formal request from Sri Lanka Police. The approval allows investigators additional time to conduct in-depth interrogations related to the killing of underworld figure known as ‘Ganemulla Sanjeewa.’
Sewwandi, who had been evading arrest for several months, was recently tracked down and apprehended in Nepal through coordinated international efforts. She was subsequently repatriated to Sri Lanka to face legal proceedings.
Investigators suspect her involvement in a broader criminal network, and believe she may hold critical information about the circumstances surrounding Sanjeewa’s murder, as well as other related criminal activity.
Zimbabwe Confirmed for T20 Tri-Series in Pakistan Alongside Sri Lanka
October 19, Colombo (LNW): Zimbabwe has formally accepted an invitation from the Pakistan Cricket Board (PCB) to compete in a T20 international tri-series, which will also feature Sri Lanka. The tournament is set to take place across two Pakistani cities—Rawalpindi and Lahore—from November 17 to 29.
This marks the first time a T20 tri-series will be hosted on Pakistani soil, and it has been designed to serve as crucial match preparation for all three teams ahead of the ICC Men’s T20 World Cup in 2026, which will be jointly hosted by India and Sri Lanka.
The series will kick off on November 17 at the Rawalpindi Cricket Stadium, where Pakistan will face Zimbabwe in the opening clash. On November 19, Zimbabwe will return to the field to take on Sri Lanka at the same venue.
After these initial two fixtures, the tournament will move to Lahore’s Gaddafi Stadium, which will host the remaining five matches, including the final, scheduled for November 29.
The inclusion of Zimbabwe comes after Afghanistan withdrew earlier in the day, citing scheduling constraints. Their absence opened the door for Zimbabwe to step in and provide competitive balance to the three-nation series.
Sri Lanka’s Public Debt Jumps by One Trillion in 1H of 2025
October 19, Colombo (LNW): Sri Lanka’s public debt has reportedly surged by one trillion rupees in the first half of 2025.
Notwithstanding the massive increase in taxes and the implementation of the cost-reflective prices of utilities since the beginning of the IMF programme, Government indebtedness and its debt stock has been rising at a dangerous pace.
At the end of December 2024, the total debt stock of the Government was Rs.28.7 trillion. By June 2025 (in six months), it had jumped to Rs.29.7 trillion: an increase of Rs.1 trillion or Rs.1000 billion in just six months at an unbelievable rate of about Rs.5.6 billion per day!