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Export Earnings Climb as Sri Lanka Records Solid Growth in 2025

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December 22, Colombo (LNW): Sri Lanka’s export performance continued to strengthen in 2025, with total earnings reaching US$15.78 billion during the first eleven months of the year, according to the latest figures released by Sri Lanka Customs.

The Export Development Board (EDB) reported that exports maintained a steady upward momentum from January to November, posting a year-on-year increase of 5.8 per cent. Officials attributed the growth to improved market diversification, stronger demand in key destinations and ongoing efforts to enhance competitiveness.

Exports in November alone, covering both goods and services, amounted to US$1.36 billion, marking a 5.56 per cent rise compared to the same month in 2024. Merchandise exports were a major contributor, expanding by nearly 6 per cent year-on-year to reach US$1.05 billion, based on provisional Customs data that include estimated earnings from gems and jewellery as well as petroleum products.

Cumulatively, merchandise exports from January to November 2025 stood at US$12.42 billion, reflecting a 6.41 per cent increase over the corresponding period last year. Meanwhile, services exports also showed positive growth, with earnings in November estimated at US$311.3 million, up 4.27 per cent from a year earlier. For the first eleven months of the year, services exports are estimated to have generated US$3.36 billion, representing a 3.63 per cent increase.

The EDB noted that the continued expansion of services exports underscores the growing role of Sri Lanka’s knowledge-driven sectors, which are playing an increasingly important part in boosting overall export revenue and supporting economic resilience.

Inflation Eases Further as Consumer Prices Continue to Cool

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December 22, Colombo (LNW): Sri Lanka’s inflation rate showed further signs of moderation in November 2025, with the National Consumer Price Index (NCPI) indicating a drop to 2.4 per cent, down from 2.7 per cent recorded the previous month, according to newly released official statistics.

Data from the Department of Census and Statistics show that food prices were a key driver of the decline. Food inflation fell to 3.6 per cent in November, compared with 4.1 per cent in October, reflecting softer price pressures on essential items.

In contrast, year-on-year inflation for non-food goods and services remained steady at 1.5 per cent, suggesting relative stability outside the food sector.

On an annual basis, food items accounted for a 1.57 per cent contribution to overall inflation in November 2025 when compared with the same month last year, underlining their continued influence on household spending.

The department also reported that the NCPI for all items stood at 207.2 points in November, marking a slight decline of 0.3 index points from October. Economists say the latest figures point to a gradual easing of cost-of-living pressures, although prices remain sensitive to changes in supply conditions and global trends.

Teacher Unions Set Deadline Over Proposed Extension of School Hours

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December 22, Colombo (LNW): Teachers’ trade unions have warned that they will resort to industrial action if the government fails to deliver a clear response on the proposed extension of school hours by January 05, 2026.

Union representatives met Prime Minister Dr Harini Amarasuriya earlier today at the Ministry of Education, where discussions centred on wider education reforms and the controversial plan to lengthen the school day.

The meeting followed growing unease among educators, who argue that any changes must be preceded by proper consultation and clear safeguards for teachers and students alike.

Union officials said they had previously prepared to launch protest action on December 12 but decided to postpone it in the hope that dialogue with the authorities would lead to a resolution.

They noted that during today’s talks, the Prime Minister listened to their concerns and indicated that the issues raised would be reviewed before a final decision is taken.

Despite this assurance, the unions stressed that patience is wearing thin and that meaningful engagement and a firm position from the government are essential to avoid disruption to schools in the coming months.

UN Praises Sri Lanka’s Disaster Response: Govt Reaffirms Commitment to Recovery

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December 22, Colombo (LNW): Prime Minister Dr Harini Amarasuriya met with the United Nations Resident Coordinator in Sri Lanka, Marc-André Franche, at the Prime Minister’s Office on 20 December 2025 to review the country’s response to the recent natural disasters and the progress of relief efforts.

According to an official statement, Mr Franche expressed strong appreciation for the speed and coordination shown by the Government in reaching affected communities and delivering emergency assistance. Drawing on comparisons with crisis responses in other parts of the world, he observed that Sri Lanka has received an unusually high level of international backing, reflecting confidence in the country’s response mechanisms.

He also assured the Prime Minister that he would fully apply both his official role and personal dedication to mobilise continued international support, ensuring that Sri Lanka receives the help required during the recovery phase.

Prime Minister Amarasuriya, in turn, thanked the United Nations for its sustained cooperation and support. She noted that the combined efforts of political leadership and public officials, from district-level administrators to frontline personnel, had played a decisive role in managing the situation effectively.

She further reaffirmed the Government’s commitment to ensuring transparency and efficiency in the use of international assistance, while prioritising the swift restoration of normal life for families and communities impacted by the disaster.

The discussion was also attended by Secretary to the Prime Minister Pradeep Saputhanthri and Secretary to the Ministry of Education Nalaka Kaluwewa.

Prime Minister Pledges People-Centred Economic Reforms and Expanded Public Service Recruitment

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December 22, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has said the government is committed to steering the economy in a way that improves everyday life for citizens, rather than promoting privilege for a select few.

Speaking at a scholarship award ceremony in Kilinochchi, she explained that the administration’s new policy framework is designed to produce practical results for communities across the country. She stressed that the success of these plans depends heavily on close cooperation between central ministries and provincial administrations.

The Prime Minister also revealed that preparations are under way to tackle long-standing staff shortages in the public sector, including a significant number of unfilled teaching posts, with recruitment measures expected to be implemented in 2026.

Dr Amarasuriya was addressing an event held at the Nelum Piyasa Hall within the Iranamadu Army Camp, organised to honour high-achieving students from the Northern Province. Students who recorded exceptional results at the 2024 G.C.E. Advanced Level Examination were recognised, with scholarships awarded through the Presidential Fund to support their future studies.

Sri Lanka Among Countries Hit as Washington Plans Broad Diplomatic Reset

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December 22, Colombo (LNW): Sri Lanka has been included in a sweeping diplomatic shake-up by the Trump administration, which is preparing to rotate out nearly 30 senior American envoys as part of a wider effort to realign the United States’ overseas presence with President Donald Trump’s “America First” agenda.

According to officials familiar with the matter, the US Ambassador in Colombo is among a group of career diplomats who were recently told that their assignments would conclude early next year. Similar notifications were issued to chiefs of mission across close to 30 countries, with most of the affected diplomats having assumed their roles during the previous administration.

While many of these envoys had initially weathered the early months of Trump’s second term—when political appointees were the primary focus of removals—the latest round marks a broader recalibration. Messages from Washington began reaching embassies midweek, signalling that a more comprehensive personnel review was under way.

US ambassadors formally serve at the president’s discretion, though they commonly remain in post for several years. Those being recalled are not being dismissed from the foreign service; instead, they are expected to return to Washington and may be reassigned to other roles if they choose.

The State Department has avoided confirming exact figures or naming specific countries, but has played down the significance of the changes. Officials described the move as routine for any new administration, emphasising that ambassadors act as the president’s personal representatives abroad and are expected to reflect his policy priorities.

Africa appears to be the region most heavily affected, with more than a dozen ambassadorial posts earmarked for change, spanning countries from West, East and Southern Africa. Asia follows, where several Pacific and South-East Asian missions are set to see new leadership. A smaller number of posts in Europe, the Middle East, South and Central Asia—including Sri Lanka—and the Americas are also involved.

Diplomatic observers say the reshuffle underlines the administration’s determination to ensure closer political alignment at senior levels overseas, even as continuity is maintained within the professional foreign service.

Spike in Online Scams Prompts Cybersecurity Warning

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December 22, Colombo (LNW): Sri Lanka’s national cyber response body has sounded the alarm over a noticeable rise in online fraud, particularly involving bogus sellers offering goods through digital platforms.

Officials from the Sri Lanka Computer Emergency Readiness Team (SLCERT) say an increasing number of complaints point to individuals posing as legitimate traders to deceive buyers and extract money.

Chief Information Security Engineer Nirosh Ananda stressed that consumers should take extra care to verify the authenticity of sellers and businesses before making any online payments, especially when deals appear unusually attractive.

He also revealed that SLCERT has recently received reports of scams exploiting public sympathy, with fraudsters falsely claiming to collect or distribute financial aid for communities affected by natural disasters.

Such schemes, he warned, often use emotional appeals to pressure victims into making quick transfers without proper checks.

SLCERT has advised the public to exercise caution when buying or selling items online, avoid sharing sensitive financial information, and rely on trusted platforms and verified sources. Authorities encourage anyone who suspects fraudulent activity to report it promptly so further losses can be prevented.

Police Investigate Conflicting Complaints Involving Ruling Party MP and Constable

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December 22, Colombo (LNW): Sri Lanka Police have launched an investigation following opposing complaints linked to an alleged confrontation between a police constable and a group that reportedly included a Ratnapura District Member of Parliament representing the National People’s Power (NPP).

In a statement released by the Police Media Division, it was revealed that the incident was first reported at around 8.40 p.m. on December 20. A constable from the Sooriyakanda Police Station, who had just completed his duty and was travelling home, contacted the 119 emergency hotline and lodged a complaint with the Kolonna Police.

He claimed that he had been attacked near the Kalugala Temple by a group led by NPP MP Shantha Pathma Kumara Subasingha, and that his motorcycle had been forcibly taken during the encounter.

Later the same evening, at approximately 10.10 p.m., MP Subasingha himself made a complaint to the Kolonna Police, offering a different account of events. According to his statement, he was travelling in a hired vehicle from Kalugala towards Halwinna when a police constable allegedly obstructed the road by positioning a motorcycle across it. The MP further alleged that the officer stopped the vehicle and attempted to assault him.

Police confirmed that the motorcycle belonging to the constable was later discovered abandoned on the roadway close to the Kalugala Temple and was taken into police custody for further examination.

Following the incident, the injured constable was admitted to Kolonna Hospital and subsequently transferred to Embilipitiya Hospital for further treatment. Medical records reportedly indicated the presence of alcohol on the officer’s breath. Although urine tests did not reveal any narcotic substances, police said arrangements are being made to obtain blood samples, which will be sent to the Government Analyst to determine whether alcohol had been consumed.

Authorities stated that comprehensive investigations into the incident are now under way and are being handled by the Embilipitiya Divisional Crimes Investigation Bureau, operating under the direct supervision of the Senior Superintendent of Police for the Embilipitiya Division.

Authorities reassure there is no immediate flood threat despite elevated river levels

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December 22, Colombo (LNW): Irrigation officials have moved to reassure the public that there is no immediate flood threat, even though water levels in parts of the Mahaweli river system remain above average following recent rainfall.

According to the Department of Irrigation, the Manampitiya River, which feeds into the Mahaweli, is currently running high but shows no signs of escalating into a flood situation. Director of Irrigation in charge of Hydrology and Disaster Management, L. S. Sooriyabandara, said controlled water releases are taking place as a routine safety measure, with sluice gates opened at several reservoirs within the Mahaweli basin.

He noted that while the Thanthirimale Reservoir in Anuradhapura District has recorded increased water levels, conditions remain stable and do not suggest a heightened flood risk. Monitoring teams continue to track inflows and outflows to ensure water is managed gradually and safely.

Rainfall over the past 24 hours has been relatively moderate, with the highest figure recorded in Ampara District at 25 millimetres. Officials said this amount is insufficient to trigger sudden rises in river levels but will continue to be closely observed if further rain develops.

At present, spill gates at 36 major reservoirs managed by the Department of Irrigation have been opened to regulate excess water. However, authorities emphasised that discharge levels are well within safe limits. In addition, 52 medium-scale reservoirs are also releasing water in a controlled manner, with no danger posed to communities living near rivers or in low-lying areas.

The department stressed that ongoing surveillance and timely adjustments are in place to prevent any unexpected flooding, and the public has been advised to remain calm while staying alert to official updates.

Digitised Payments and the Anti-Corruption Law of Sri Lanka

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By: Nalinda Indatissa, PC.

Sri Lanka’s Anti-Corruption Act, No. 9 of 2023 was enacted to prevent corruption, detect it early, and punish offenders effectively. However, laws alone are not enough. They must be supported by systems that make corruption difficult.

One such system is a fully digitised payment system for all transactions—governmental and private.

1. Purpose of the Anti-Corruption Act

(Section 2 – Objects of the Act)

The Act aims to:
Prevent corruption
Promote transparency
Ensure accountability
Strengthen public confidence

A digitised payment system directly supports these goals by making money movements visible and traceable.

In simple terms:
The law wants transparency; digitisation delivers transparency.

2. Bribery and Corruption Depend on Cash

Most bribes are paid in cash because:
Cash leaves no record
Cash is hard to trace
When payments are digitised:
Bribes become harder to give and receive
Illegal payments leave electronic evidence

Digitisation makes bribery risky and detectable, which discourages corruption.

3. Unexplained Wealth Becomes Easier to Prove

The Act allows prosecution where a person:
Has wealth beyond known income
Cannot reasonably explain the source
Digitised payments help by clearly showing:
Lawful income
Actual spending
Hidden or suspicious transactions

This strengthens one of the most powerful provisions of the Act.

4. Electronic Records as Legal Evidence

The Act gives investigators wide powers to:
Obtain bank records
Trace financial transactions
Use documents and electronic data as evidence

Digitised payments:
Automatically generate reliable records
Reduce dependence on witnesses
Strengthen cases in court

Courts decide cases on facts, not rumours.

5. Protection of Public Funds

Many corruption offences involve:
Government payments
Procurement
Licences and approvals

When all government payments are digitised:
Money goes directly to the State
Officers cannot demand “extra payments”
Leakages are reduced

This protects public money, which belongs to the people.

6. Duty to Declare Assets

Public officers must declare:
Income
Assets
Liabilities

Digitised transactions help verify:
Whether declarations are true
Whether income matches lifestyle

False declarations become easier to detect.

7. Prevention Is Better Than Punishment

The new law focuses not only on punishment, but also on prevention.

Digitised payments:
Reduce human discretion
Remove middlemen
Create automatic accountability

Corruption is stopped before it starts.

Conclusion

The Anti-Corruption Act, No. 9 of 2023 provides the legal strength.
A digitised payment system provides the practical strength.

Together, they:
Reduce corruption
Improve enforcement
Protect honest officers
Restore public trust

Cash hides corruption. Digitisation exposes it.

If Sri Lanka is serious about enforcing its anti-corruption law, digitised payments must be treated as a legal necessity, not a luxury.