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Sri Lanka Targets US$15 Billion Digital Economy by 2029

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Sri Lanka has set ambitious plans to achieve a fivefold expansion of its digital economy, aiming for US$15 billion within the next four years, Chief Advisor to the President on the Digital Economy and ICTA Chairman Dr. Hans Wijeyasuriya announced yesterday.

Delivering the keynote address at the main conference of Disrupt Asia 2025, Dr. Wijeyasuriya highlighted the government’s roadmap for digitalisation, positioning Sri Lanka as South Asia’s innovation hub.

He outlined three key priorities: tripling digital exports, doubling the digital talent pool, and elevating the country’s standing in global digital rankings by improving 25 points on international benchmarks.

“These steps are essential for unlocking Sri Lanka’s potential as a leader in the regional innovation landscape,” Dr. Wijeyasuriya said.

Women Parliamentarians’ Caucus Explores UK Support and Youth Political Participation

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Sri Lanka’s Women Parliamentarians’ Caucus held discussions with the Westminster Foundation for Democracy (WFD) and the Law and Society Trust (LST) on September 12, 2025, under the patronage of Prime Minister Dr. Harini Amarasuriya and Caucus Chairperson, Minister of Women and Child Affairs, Saroja Savitri Paulraj, according to the Department of Communication of Parliament.

During the meeting, the WFD proposed avenues of support including gender-sensitive law-making, gender-responsive budgeting, and enhancing the role of the Caucus in increasing women’s labour force participation. The foundation also pledged research and policy support to strengthen Parliament as a gender-sensitive institution.

Caucus members emphasized the importance of addressing grassroots-level activism in addition to higher-level political engagement. They highlighted the need to mobilize women at the community level as a critical step toward meaningful change. The meeting also noted challenges faced by women parliamentarians and underscored the importance of establishing support mechanisms such as counselling.

The session further explored intergenerational dialogue to encourage young women’s entry into politics. LST representatives invited the Caucus members to participate in their programme scheduled from September 16 to 19, 2025.

Deputy Chairperson of Committees, MP Hemali Weerasekera, along with MPs (Dr.) Kaushalya Ariyarathne, Krishnan Kalaichelvi, Nilanthi Kottahachchi (Attorney-at-Law), Thushari Jayasingha (Attorney-at-Law), Anushka Thilakarathne (Attorney-at-Law), Deepthi Wasalage, Hiruni Wijesinghe (Attorney-at-Law), Oshani Umanga, Ambika Samivel, and Lakmali Hemachandra (Attorney-at-Law) also attended the meeting.

WEATHER FORECAST FOR 19 SEPTEMBER 2025

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Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central, Northern and North-western provinces and in Galle and Matara districts.

Showers or thundershowers will occur at several places in Eastern and Uva provinces and in Hambantota district after 1.00 p.m.

Fairly heavy falls above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

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

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

Sri Lanka’s BIRDS-X DRAGONFLY Nanosatellite Set for September 19 Launch

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By: Staff Writer

September 18, Colombo (LNW): Sri Lanka is poised to achieve another significant milestone in its space exploration endeavors with the upcoming launch of its third nanosatellite, BIRDS-X DRAGONFLY, scheduled for September 19 at 2:15 p.m. local time. This development underscores the nation’s growing capabilities in space technology and its commitment to advancing scientific research through international collaboration.

The DRAGONFLY satellite was delivered to the International Space Station (ISS) aboard NASA’s SpaceX CRS-33 mission on August 24. It is set to be deployed into orbit from the ISS, marking a significant step in Sri Lanka’s participation in global space initiatives. This launch follows the successful deployment of Sri Lanka’s first nanosatellite, RAAVANA-1, in 2019, and the KITSUNE satellite in 2022, developed through international partnerships.

A notable aspect of the BIRDS-X DRAGONFLY project is that it incurred no capital cost to Sri Lanka. The initiative was spearheaded by Engineer (Dr.) Sanath Panawanne, former Director General of the Arthur C. Clarke Institute for Modern Technologies (ACCIMT) and founder of the Sri Lankan Space Technology Development Program. The project received support from the Japan Aerospace Exploration Agency (JAXA), the Amateur Radio Digital Communications (ARDC) agency, and the Kyushu Institute of Technology in Japan.

The Sri Lankan engineering team contributing to this project includes Engineer Kamani Ediriweera, Engineer Kavindra Jayawardena, Engineer Tharindu Dayarathna, Engineer Kaveendra Sampath, Engineer Uditha Gayan, and Research Scientist Thilina Wijebandara. Their collaborative efforts reflect the nation’s growing expertise in space technology and its ability to contribute meaningfully to international space projects.

The BIRDS-X DRAGONFLY satellite carries out three primary missions:

Testing a New Low-Cost Communication Subsystem: Developed by Engineer Tharindu Dayarathna, this subsystem aims to enhance communication capabilities for nanosatellites, making space technology more accessible and cost-effective.

Conducting an Additional Communication Research Mission: This mission seeks to further explore and improve communication systems, contributing to the advancement of satellite technology.

Evaluating the BUS System Under Space Conditions: The BUS System serves as the satellite’s common structure, housing essential subsystems. Assessing its performance in space conditions is crucial for ensuring the reliability and efficiency of future satellite designs.

The BIRDS-X project, which DRAGONFLY is a part of, is a 2U CubeSat initiative focused on amateur radio communication. It aims to democratize space usage and provide opportunities for global participation in space research. The project includes competitions for amateur radio operators to engage with the satellite’s communication systems, fostering international collaboration and innovation in space technology.

The successful deployment of BIRDS-X DRAGONFLY will not only enhance Sri Lanka’s standing in the global space community but also contribute valuable data and insights into satellite communication and technology. This achievement highlights the importance of international partnerships and the role of emerging nations in advancing space exploration.

As Sri Lanka continues to expand its presence in space, the launch of BIRDS-X DRAGONFLY serves as a testament to the nation’s dedication to scientific advancement and its ability to collaborate on the global stage.

Sinopec Refinery Sparks Concerns over Sri Lanka’s Energy Independence

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By: Staff Writer

September 18, Colombo (LNW): Sri Lanka is on the verge of embarking on a $3.7 billion oil refinery project with Chinese state-owned Sinopec, but the deal has raised alarm bells over energy sovereignty, market control, and mounting geopolitical influence. Approved in 2023, the proposed Hambantota refinery will process up to 200,000 barrels of crude oil per day, positioning the southern port city as a central hub in Sri Lanka’s energy landscape.

While Energy Minister Kumara Jayakody insists that the government has completed land allocations and preparatory facilities, the project’s start date hinges on unresolved negotiations with Sinopec regarding domestic fuel sales. Sources familiar with the discussions say the company has long sought greater access to Sri Lanka’s local fuel market. Originally restricted to selling only 20% of output domestically, Sinopec may now be allowed to sell up to 40% locally—a compromise that could tip the balance between national energy security and corporate profitability.

Arjuna Herath, chair of the Board of Investment, noted the delicacy of the negotiations: “If they don’t have greater market access, feasibility and viability in the current context could be challenging. That’s the point being negotiated.” Sinopec has declined public comment. Observers warn that excessive reliance on a foreign state-owned enterprise could leave Sri Lanka vulnerable to supply and pricing pressures.

In parallel, the government plans a $3 billion expansion of its Colombo-based state refinery, aiming to increase capacity from 38,000 barrels per day to 150,000 barrels per day. While this expansion is intended to bolster domestic energy security, Sinopec and other foreign companies from India, Qatar, and China have shown interest, raising concerns that foreign influence may overshadow state-run operations.

Geopolitical stakes further complicate the issue. Sri Lanka sits along critical maritime routes linking Asia, Africa, and Europe, drawing interest from both China and India. With India establishing plans for an energy hub on the eastern coast, the Hambantota refinery could become a strategic foothold for China, reinforcing fears that Sri Lanka’s energy policy is increasingly shaped by external powers rather than domestic needs.

Critics also highlight economic risks. The refinery deal could saddle Sri Lanka with high financial exposure, given Sinopec’s scale and the associated infrastructure costs. Additionally, if the majority of fuel output is exported, domestic supply could remain limited, keeping local prices high and undermining energy independence.

Experts argue that the success of Sri Lanka’s energy strategy will depend on how well the government balances foreign investment with national control. Allowing Sinopec significant market influence without robust regulatory safeguards may deliver short-term capacity gains but could lock the country into long-term dependence on a single foreign player.

As construction timelines loom, Sri Lanka faces a critical test: ensuring that its energy ambitions enhance national security and economic stability, rather than serving the strategic and commercial interests of foreign powers. The next few months of negotiation with Sinopec will be decisive in determining whether the refinery becomes a pillar of domestic energy resilience—or a geopolitical lever that leaves the country vulnerable.

TAX Revenue Management IT System Flaws Threaten Billions in State Revenue

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By: Staff Writer

September 18, Colombo (LNW): Sri Lanka’s much-hyped Rs. 10 billion Revenue Administration Management Information System (RAMIS), introduced in 2016 to overhaul tax collection, is faltering under severe governance and technological weaknesses, raising concerns over its ability to safeguard billions in state revenue, the World Bank has cautioned.

In its latest Sri Lanka Public Finance Review – Towards a Balanced Fiscal Adjustment, the Bank warned that the Inland Revenue Department’s (IRD) reliance on an underperforming IT backbone is constraining the country’s fiscal reform agenda. RAMIS, developed by a Singaporean firm, was intended to automate core tax functions, from taxpayer registration to compliance monitoring. Yet, nearly a decade later, many of those functions remain unreliable or absent.

“The lack of functionality in RAMIS remains a binding constraint in improving tax administration,” the Bank said, noting that the IRD continues to rely on manual interventions that are resource-intensive, error-prone, and open to inefficiencies.

A critical gap lies in the maturity of the IRD’s IT department. Without strong in-house capacity, the department is heavily dependent on vendors, leaving key functions vulnerable if external support fails. The World Bank flagged weak IT governance, poor vendor management, and inadequate human resources as compounding risks.

RAMIS has yet to deliver essential tools such as fully operational taxpayer portals, automated risk management, or comprehensive data analytics. These shortcomings, the Bank argued, highlight not just technical flaws but broader institutional weaknesses.

While the IRD has laid out an IT Strategic Plan, the World Bank said it falls short of addressing urgent challenges: building a proper governance framework, attracting and retaining skilled IT staff, and developing capacity to manage vendors effectively. “The inability to attract and retain skilled IT staff undermines long-term capability,” the review stressed.

The government has set 2027 as a deadline for the IRD to build internal capacity to manage and run RAMIS independently. But the Bank stressed that this transition will require heavy investment, stronger project management, and political backing. It recommended adopting international governance standards such as COBIT or ISO/IEC 38500, expanding IT staffing, and establishing a data warehouse for better tax analysis.

Despite these structural flaws, IRD has improved efficiency in recent years. Between 2020 and 2023, its cost of collection fell from Rs. 0.86 to Rs. 0.41 for every Rs. 100 collected—well below the global average of Rs. 1. But the Bank warned that such efficiency gains cannot substitute for structural reform. To sustain higher revenue, Sri Lanka must modernise its tax authority through detailed, sequenced, and well-resourced reforms, it said.

The report also pressed for a shift towards risk-based audits and refunds, backed by legislative reform. It urged the government to introduce a new Tax Administration and Procedures Law to replace discretionary practices with transparent, codified rules.

Ultimately, the World Bank’s message is clear: unless Sri Lanka strengthens its IT backbone, governance, and human resources, RAMIS risks becoming a costly, underperforming system that threatens rather than protects the country’s fiscal future.

Spice Import Licenses Spark Fears of Backroom Deals and Industry Betrayal

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By: Staff Writer

September 18, Colombo (LNW): A government decision to allow spice imports under a new “approved enterprise” scheme has sent shockwaves through the plantation sector, with mounting suspicion that the policy is less about boosting exports and more about paving the way for a handful of powerful players to dominate the spice trade.

The Planters’ Association of Ceylon (PA), in a strongly worded statement, warned that the new licensing framework could become a smuggling pipeline, dragging down prices of locally grown cinnamon, pepper, nutmeg and cloves, while tarnishing the internationally trusted Pure Ceylon Spices brand.

Officially, the move is justified as a strategy to process imported spices into value-added products such as oil extracts and oleoresins for re-export. But industry insiders allege that this narrative masks deeper motives. They fear that politically connected businesses will profit from importing cheaper raw material, blending it with local produce, and quietly releasing it into domestic and export channels.

History offers a cautionary tale. In 2016, large consignments of imported pepper allegedly entered the export stream under dubious classifications, prompting India Sri Lanka’s largest buyer—to clamp down on Ceylon spice imports. Farmers bore the brunt, with farm-gate prices collapsing and livelihoods wiped out overnight. The PA warns the country is on the brink of repeating the same debacle, this time with official sanction.

Several exporters, speaking on condition of anonymity, questioned the opaque nature of the approvals. “Nobody knows who these ‘approved enterprises’ are or on what basis they were selected. The secrecy itself raises red flags,” one exporter remarked. “This is how smuggling is legitimized through loopholes dressed up as policy.”

The danger extends beyond economics. Imported spices, grown under different environmental and sanitary standards, could introduce pests and diseases into local plantations. Once established, such infestations could devastate crops and cripple national food security. Yet, critics ask, where is the robust inspection regime to prevent such outcomes?

International markets are already reacting. Reports indicate delays in clearing spice consignments at Indian ports, amid suspicions that foreign-grown produce could be passed off under Sri Lanka’s country-of-origin certification to exploit tariff concessions. Should such fears be confirmed, India and other trading partners could retaliate, eroding hard-won export credibility across multiple commodities.

The Planters’ Association also drew parallels to the areca-nut fiasco, where hasty policy changes enabled cross-border rackets, international disputes, and a collapse in local prices. The concern is that once consumer trust in Pure Ceylon Spices is lost, no marketing campaign or policy reversal will be able to restore it.

Critics argue the bigger question remains unanswered: who stands to gain from these imports? Farmers and small-scale producers see little benefit, exporters warn of reputational ruin, and consumers face the risk of adulterated products. “This decision does not protect farmers or strengthen our brand it protects a select few enterprises whose names remain hidden,” a veteran industry analyst observed.

With livelihoods, food security and an iconic global brand at stake, the Government’s silence on the identities of license-holders and the safeguards against abuse is only fuelling suspicions. Unless transparency is enforced and farmer interests safeguarded, many fear that a centuries-old industry could be bartered away for the benefit of a privileged few.

National Library and Documentation Services Board’s Manuscripts accepted for Publication Assistance Project

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The National Library and Documentation Services Board has announced that the manuscripts accepted for the Publication Assistance Project 2026 implemented by the National Library and Documentation Services Board will be implemented from September 22, 2025 to December 31, 2025.

Under the Publication Assistance Project, it is planned to provide assistance for higher academics, research, novels, short stories, poetry, youth literature and children’s works. The National Library and Documentation Services Board further announced that it will award Rs. 150,000 for the best academic and research works, Rs. 125,000 for novels, Rs. 100,000 for short story collections and works of various genres, and Rs. 75,000 for poetry, youth literature and children’s works, and that all these works are expected to be launched for the Literature Month of 2026.

Interested writers can visit the National Library and Documentation Services Board located on Independence Avenue, Colombo 7 or call 0112-687583 for further information. Information and applications related to this project can also be obtained by visiting the website www.natlib.lk and via the email address [email protected].

Ex-Sabaragamuwa Provincial Minister Remanded Over Alleged Misuse of Public Funds

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September 18, Colombo (LNW): A former Provincial Minister in the Sabaragamuwa region, Athula Kumara Rahubaddha, has been ordered to remain in remand custody until October 02, following his appearance before the Embilipitiya Magistrate’s Court today (18).

Rahubaddha was taken into custody a day earlier by officers attached to the Financial Crimes Investigation Division (FCID), operating under the Criminal Investigation Department (CID). The arrest is linked to a major financial misconduct inquiry concerning approximately Rs. 70 million in public funds that were allocated during his ministerial term between 2016 and 2017.

According to information presented in court by CID investigators, 77 development initiatives were officially approved during the relevant period, and state funds were reportedly disbursed for 15 of these projects. However, the investigators allege that there is no evidence to show that these projects were ever carried out.

The prosecution argued that this points to a deliberate misappropriation of state resources and a breach of public trust, prompting the court to order Rahubaddha’s continued detention while further inquiries are carried out.

Sri Lanka Strengthens Overseas Diplomatic Role in Trade and Investment Push

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September 18, Colombo (LNW): In a bid to energise the nation’s economic diplomacy and strengthen global trade ties, Sri Lanka has unveiled a new inter-agency coordination framework designed to align its foreign missions with national trade, investment, and industrial objectives.

The initiative was formally launched by Foreign Affairs Minister Vijitha Herath, alongside Industry Minister Sunil Handunneththi and Trade Minister Wasantha Samarasinghe. Senior ministry officials, secretaries, and heads of key agencies participated in the strategic session held on September 16, which brought together all of Sri Lanka’s Heads of Mission and Post from around the world.

The gathering served as a platform to exchange key policy priorities and generate actionable proposals aimed at improving Sri Lanka’s international economic engagement. According to the Ministry of Foreign Affairs, Foreign Employment and Tourism, the session marked a decisive shift towards a more integrated, mission-driven approach to advancing the country’s economic agenda abroad.

Opening the session, Foreign Secretary Aruni Ranaraja provided a comprehensive overview of Sri Lanka’s current export and investment climate. She stressed the importance of diversification and the urgent need to move beyond traditional export sectors, urging missions to adopt strategic targeting to attract high-quality foreign investment.

She noted that coordinated inter-agency efforts—both at home and abroad—are essential to building economic resilience, especially as Sri Lanka works to stabilise and reposition itself in the global market.

Foreign Minister Vijitha Herath underscored the critical role of Sri Lanka’s diplomatic network in the post-crisis recovery phase, highlighting that embassies and consulates are now expected to serve not only as diplomatic outposts but also as active facilitators of trade and investment.

“Our Heads of Mission must now be economic ambassadors—proactive in identifying growth opportunities, cultivating investor confidence, and promoting Sri Lanka as a competitive export hub,” he said. He further added that accountability mechanisms would be put in place to monitor progress and ensure that each mission contributes meaningfully to national targets.

Minister Handunneththi addressed the need for revitalising the industrial sector, which remains a key engine of economic growth. He highlighted plans to draw foreign direct investment into key manufacturing zones, particularly in areas where Sri Lanka has natural resource advantages. He also emphasised the importance of moving up the value chain and reducing reliance on raw exports.

From a trade policy standpoint, Minister Samarasinghe warned of the shifting dynamics in global commerce, calling on officials to adopt a future-focused mindset to achieve Sri Lanka’s ambitious export goals for 2030. He emphasised the need for tailored, adaptive strategies to secure long-term trade partnerships and penetrate emerging markets.

Trade Secretary K.A. Vimalenthirarajah reaffirmed the ministry’s commitment to supporting overseas missions in executing these economic mandates, stressing that a united front among all government actors would be essential.

The session also featured detailed presentations from the leadership of the Board of Investment (BoI) and the Export Development Board (EDB), who outlined the country’s medium-term economic goals. These included data-backed projections, export growth benchmarks, and the roadmap for attracting strategic investments over the next five years.

A consensus was reached to translate the proposals into concrete action plans, with regular reviews to track implementation and make course corrections where necessary.