By: Isuru Parakrama
March 23, Colombo (LNW): Farming communities are sounding the alarm over the growing impact of recent fuel price hikes, warning that the agricultural sector is coming under intense pressure.
Growers’ organisations say the sharp increase in fuel costs has driven up expenses at every stage of farming, from land preparation to distribution. Vegetable traders in Keppetipola report that transport charges have risen steeply in recent days, making it increasingly difficult to move produce from up-country farms to urban markets.
Some traders caution that, if the situation persists, the vegetable supply chain in the hill country could face serious disruption, with the risk of shortages in key markets. They note that smaller-scale farmers, in particular, are struggling to absorb the additional costs.
Rice producers have echoed similar concerns, pointing out that both cultivation and delivery expenses have climbed significantly. With fuel playing a critical role in irrigation, machinery operation and logistics, they argue that maintaining current price levels is no longer viable.
As a result, industry representatives suggest that rice prices may soon be revised upwards, potentially by more than Rs. 10 per kilogramme. Analysts warn that such increases could have a ripple effect on overall food prices, adding further strain to household budgets already under pressure.
Fuel Price Surge Puts Agriculture Under Strain, Food Costs Likely to Rise
Afternoon showers expected in several provinces: Dry weather to prevail elsewhere (Mar 23)
By: Isuru Parakrama
March 23, Colombo (LNW): Showers or thundershowers may occur at several places in Western and Sabaragamuwa provinces and in Galle, Matara and Nuwara-Eliya districts after 2.00 pm, the Department of Meteorology said today (23).
Mainly dry weather will prevail over the other parts of the island.
Misty conditions can be expected at some places in Western, Central, Sabaragamuwa and Uva provinces and in Galle, Matara and Kurunegala districts during the early hours of the morning.
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 may occur at a few places in the sea areas off the coast extending from Colombo to Hambantota via Galle.
Winds:
Winds will be North-easterly or variable in direction. Wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Sri Lanka Debt Trap Fears Rise amid Global Turmoil
By: Staff Writer
March 22, Colombo (LNW): Sri Lanka’s fragile economic recovery is facing renewed test as global instability particularly tensions in the Middle East threatens to expose deep structural weaknesses in the country’s financial system.
According to W. A. Wijewardena, the island nation is entering a dangerously vulnerable phase where debt sustainability, interest rate pressures, and growth prospects are increasingly tied to forces beyond its control.
At the core of this concern lies Sri Lanka’s continued reliance on borrowing. The Government’s fiscal model depends heavily on rolling over existing debt while securing fresh financing to meet obligations.
Wijewardena likens this to a household surviving on a revolving credit card functional in the short term, but risky if lenders lose confidence. If refinancing avenues tighten, the consequences could be immediate and severe.
This risk is amplified by global uncertainty. The ongoing Middle East crisis has the potential to disrupt financial markets, tighten liquidity, and push up global interest rates. For Sri Lanka, which is still rebuilding after its recent economic collapse, such shifts could significantly raise borrowing costs and restrict access to external funding.
Although the Government currently manages to service interest payments through its revenue, the real challenge lies in refinancing maturing debt. That process depends not only on domestic liquidity but also on foreign investor appetite—both of which can shift rapidly under global stress.
Complicating matters further is the role of the Central Bank of Sri Lanka. With inflation recently falling to near zero after peaking at crisis levels in 2023, the Central Bank has enjoyed a period of relatively low interest rates. However, Wijewardena warns that this “honeymoon” may soon end. External shocks—such as rising oil prices—could push inflation upward, forcing the Central Bank to tighten monetary policy.
Higher interest rates would directly impact Government borrowing costs, undermining fiscal stability. At the same time, limited fiscal space restricts the Government’s ability to respond with expansionary policies, weakening coordination between monetary and fiscal strategies.
The broader issue is stagflation a scenario where economic growth slows while inflation rises. Such a combination would have serious social consequences, including higher unemployment and worsening poverty levels. Supply-side disruptions, particularly in essential imports, could further strain production and consumption.
Exchange rate pressures are also expected to intensify. With foreign inflows uncertain and inflation risks rising, the Sri Lankan rupee is likely to depreciate in the coming months. This would increase the cost of imports, widen trade deficits, and place additional strain on both fiscal and external accounts.
Ultimately, Sri Lanka faces a dual challenge: managing its immediate financing needs while navigating an increasingly hostile global environment. As Wijewardena emphasizes, the margin for policy error is крайне narrow. In a system so dependent on external borrowing, even small shocks can have outsized consequences leaving the economy exposed at a critical moment.
Sri Lanka electric vehicle charging Controversy: Policy, Power, and the EV Debate
By: Staff Writer
March 22, Colombo (LNW): The recent statement by President Anura Kumara Dissanayake linking electric vehicles (EVs) to a 300-megawatt peak-time surge in electricity demand has sparked more than a technical disagreement it has opened a broader debate about Sri Lanka’s energy policy direction.
At the heart of the issue is not whether EVs are increasing demand, but how that claim may shape national decisions on tariffs, infrastructure, and investment priorities. The President’s proposal to introduce time-based electricity pricing and encourage daytime charging reflects a proactive attempt to manage demand. However, critics argue that such measures risk being built on questionable assumptions.
Pwer and Energy specialist Vidura Ralapanawa has strongly disputed the 300 MW estimate, stating that Sri Lanka’s current EV fleet could not generate such a spike under realistic conditions. His argument shifts the focus from technical feasibility to policy consequences: if the data is flawed, the resulting policies may also be misguided.
Sri Lanka is currently navigating a delicate transition. The country is attempting to reduce its dependence on imported fossil fuels while expanding renewable energy sources such as solar. EVs play a crucial role in this transition, not only by lowering fuel consumption but also by aligning with cleaner energy goals. Users report saving hundreds of thousands of rupees annually compared to petrol vehicles, while the اnation benefits from reduced pressure on foreign exchange reserves.
Hitherto, the narrative that EVs are straining the grid could unintentionally slow this progress. If consumers are penalized with higher nighttime tariffs or discouraged from EV adoption, the long-term shift toward electrified transport may weaken. This is particularly significant given that EVs already account for an estimated 10–15% of new vehicle registrations following the lifting of import restrictions in 2025.
Another dimension of the debate lies in infrastructure readiness. Even if demand were to rise significantly in the future, experts argue that the solution lies in smarter grid management—such as battery storage systems, demand response strategies, and expanded renewable generation—rather than restricting EV usage.
Ralapanawa has also raised concerns about possible external influences shaping the narrative, suggesting that interests tied to fossil fuels may benefit from amplifying fears EV-driven demand. While such claims remain unproven, they highlight the politics and economic stakes involved in Sri Lanka’s energy discourse.
Ultimately, this controversy reflects a larger tension between caution and progress. On one hand, policymakers must ensure grid stability and avoid costly peak-time generation. On the other, overstating risks could undermine a transformation that offers clear economic and environmental benefits.
As Sri Lanka moves forward, the challenge will be to ground decisions in transparent data while maintaining confidence in emerging technologies. The EV debate, far from being just about megawatts, is shaping the future direction of the country’s energy independence.
Rising Vehicle Imports Expose Economic Strains and Policy Tradeoffs
By: Staff Writer
March 22, Colombo (LNW): Sri Lanka’s recent vehicle import data presents a mixed picture of recovery, revealing both renewed market activity and persistent economic fragilities. Beneath the surface of rising numbers lies a set of policy tradeoffs that could shape the country’s financial stability in the coming years.
Following a prolonged import ban during the height of the economic crisis, authorities have cautiously reopened the market. The result has been a surge in vehicle imports, driven largely by deferred demand. Consumers and businesses that postponed purchases are now re-entering the market, contributing to a rapid increase in import volumes.
However, the structure of these imports warrants scrutiny. A significant portion of the inflow consists of private vehicles, many of which fall into mid- to high-price categories. In contrast, the growth in imports of buses, vans, and other public or shared transport vehicles has been comparatively modest. This trend raises questions about whether current policies are aligned with broader economic and social priorities.
One key issue is the impact on the balance of payments. Vehicle imports require substantial foreign currency expenditure, and a sustained increase could strain reserves. While Sri Lanka has made progress in stabilising its external sector, including improvements in tourism and remittances, the margin for error remains limited. A surge in imports without matching export growth risks reversing these gains.
The fiscal dimension is equally significant. Vehicle imports are a major source of government revenue through duties and taxes. The recent increase has likely boosted short-term fiscal inflows. However, reliance on such revenue can create policy dilemmas, as authorities must balance income generation against the need to control import volumes.
Industry observers also highlight the role of policy predictability. Changes in tax rates, import quotas, and eligibility criteria have created an environment of uncertainty. Businesses involved in vehicle imports and distribution face challenges in forecasting demand and managing inventory. This unpredictability can dampen investment and distort market behaviour.
Infrastructure constraints further complicate the picture. Sri Lanka’s road network, particularly in urban areas, is already under pressure. An influx of private vehicles could worsen congestion, increase travel times, and elevate fuel consumption. Without parallel investments in public transport and traffic management, these issues are likely to intensify.
There is also a technological dimension to consider. The global automotive industry is rapidly shifting toward electric mobility, yet Sri Lanka’s import mix remains dominated by conventional fuel-powered vehicles. Limited incentives for cleaner technologies may delay the country’s transition to more sustainable transport systems.
The government’s challenge is to strike a balance between facilitating economic activity and safeguarding macroeconomic stability. The latest vehicle import statistics serve as a reminder that recovery is not merely about growth in numbers but about the quality and direction of that growth.
As Sri Lanka navigates its post-crisis path, the decisions made today on imports, taxation, and regulation will have lasting consequences. The current trends offer both an opportunity and a warning highlighting the need for coherent, forward-looking policy frameworks.
Ruling JVP’s Opposition Politics Stall Trinco Oil Tank Development Progress
By: Staff Writer
March 22, Colombo (LNW): For decades, Sri Lanka’s Trincomalee Oil Tank Farm has stood as a symbol of unrealised economic potential. Built during World War II and comprising 99 tanks with a combined storage capacity nearing one million metric tonnes, the facility could have transformed the island into a regional energy hub. Instead, repeated political resistance particularly from parties now in power has contributed to years of delay, underutilisation, and lost opportunity.
The current administration, led by the Marxist Janatha Vimukthi Peramuna (JVP)-aligned National People’s Power (NPP), now promotes the very foreign-backed development frameworks it once opposed. While in opposition, the JVP was among the most vocal critics of agreements involving international collaboration, especially those linked to India. This included resistance to earlier efforts tied to the Lanka IOC partnership and broader Indo-Lanka energy cooperation.
Historically, progress on the Trincomalee tank farm has been hindered by a combination of trade union activism, nationalist rhetoric, and legal challenges. However, political agitation played a decisive role. Protests against foreign involvement framed such agreements as threats to sovereignty, effectively stalling negotiations and discouraging investors. These disruptions contributed to a cycle of stagnation that prevented timely upgrades to critical infrastructure.
The irony is stark. Today, the same political bloc supports a trilateral agreement involving India, the United Arab Emirates, and Sri Lanka to renovate and expand the facility. The project includes refurbishing 61 tanks, developing bunkering services, and potentially constructing a new refinery. A joint venture structure where the Ceylon Petroleum Corporation holds a majority stake alongside Lanka IOC remains central to implementation, echoing earlier frameworks once rejected.
Sri Lanka’s current fuel storage capacity allows reserves for only about a month. Officials now argue that expanding storage to 60 days is essential for energy security. Hitherto such urgency raises questions about why similar arguments were dismissed in the past. The country’s economic crisis, exacerbated by foreign exchange shortages and fuel scarcities, underscores the cost of delayed decision-making.
Critics argue that the JVP’s past opposition to large-scale economic projects extended beyond Trincomalee. Infrastructure initiatives, foreign investment deals, and public-private partnerships frequently encountered resistance, often framed as ideological opposition to liberal economic policies. While such scrutiny is a legitimate part of democratic governance, its cumulative effect may have been to deter long-term development.
The Trincomalee project illustrates a broader pattern in Sri Lanka’s economic governance: policy inconsistency driven by political cycles. When opposition parties reject projects only to later adopt them in power, continuity suffers. Investors become wary, timelines extend, and costs escalate.
As work begins under the new agreement, the focus has shifted toward implementation. The government has allocated substantial funding and aims to position Trincomalee as a strategic energy hub. However, the legacy of past resistance remains a cautionary tale.
Sri Lanka’s challenge now is not only to complete the project but to ensure that future economic planning is insulated from short-term political shifts. Without such stability, even the most promising initiatives risk being delayed again.
Private Bus Operators Threaten Island-Wide Strike Over Fare Delay
By: Isuru Parakrama
March 22, Colombo (LNW): A looming transport disruption is on the cards this evening, as private bus operators warn they will withdraw services nationwide if authorities fail to confirm a long-awaited fare revision.
The Lanka Private Bus Owners’ Association has issued an ultimatum, stating that a strike will commence at 6:00 p.m. unless an official announcement on revised ticket prices is made by 5:00 p.m. today. The move could leave thousands of daily commuters stranded during peak hours.
Union representatives claim they have made repeated attempts to engage with the National Transport Commission, including a recent visit to seek urgent talks. However, they allege that their requests have not been met with a satisfactory or timely response.
Operators argue that rising operational expenses, particularly fuel costs, have made it increasingly difficult to continue services under the current fare structure. They insist that a delay in revising fares places undue financial strain on bus owners and drivers alike.
No Immediate Plans to Curtail Schooling Despite Fuel Pressures
March 22, Colombo (LNW): The government has ruled out any sweeping restrictions on school activities for the time being, despite ongoing concerns over fuel consumption and rising energy costs.
Speaking to the media, Minister Dr Nalinda Jayatissa stated that no decision has been taken to scale back the functioning of schools, emphasising that maintaining educational continuity remains a priority.
He explained that the current academic term is expected to run until April 10, and under the present arrangement, schools will observe closures only on Wednesdays. This measure, he noted, is intended to strike a balance between conserving fuel and ensuring students do not fall behind in their studies.
The Minister also acknowledged the strain caused by recent uncertainties surrounding key national examinations, including the G.C.E. Ordinary Level and Advanced Level. According to him, repeated disruptions in the academic calendar have placed added pressure on both pupils and educators.
In response, the authorities have opted to continue with a four-day school week, allowing sufficient classroom time while still addressing logistical challenges linked to transport and fuel usage. Officials indicated that the situation will be kept under close review, with further adjustments possible if conditions change.
Fresh Diesel Shipment Expected as Government Struggles to Contain Fuel Costs
March 22, Colombo (LNW): A new consignment of diesel is due to reach the country later this week, as authorities move to stabilise fuel supplies amid mounting financial strain and volatile global prices.
Cabinet Spokesman and Minister Dr Nalinda Jayatissa confirmed that a vessel transporting around 37,000 metric tonnes of diesel is scheduled to dock on March 25.
He noted that this delivery follows closely on the heels of a similarly sized petrol shipment received earlier in the month, underscoring the government’s ongoing efforts to maintain adequate reserves.
Addressing a media briefing, the Minister pointed out that frequent import cycles have become necessary due to unpredictable fluctuations in international fuel markets. According to him, such instability has made it increasingly difficult to manage pricing and supply in a consistent manner.
He also drew attention to the financial difficulties faced by the Ceylon Petroleum Corporation, which continues to operate at a loss despite recent price adjustments. While fuel prices were revised upwards on March 21, the government is still absorbing a considerable share of the actual cost in a bid to cushion the public from the full impact.
Officials estimate that subsidies currently amount to roughly Rs. 100 per litre of diesel and around Rs. 20 per litre of petrol. This support translates into a monthly fiscal burden of approximately Rs. 20 billion, raising concerns about the sustainability of such measures if global prices remain elevated.
Authorities say further decisions will depend on market conditions in the coming weeks, as they attempt to balance economic pressures with the need to ensure uninterrupted fuel supplies.
Fuel QR Chaos Reveals Deep Systemic Failures in Motor Traffic Department
By: Staff Writer
March 22, Colombo (LNW): A mounting crisis in Sri Lanka’s fuel quota system has exposed deeper structural failures within the Department of Motor Traffic (DMT), where outdated technology and administrative inertia are undermining essential public services.
At the heart of the issue is a breakdown in data integration. Thousands of newly registered vehicle owners both first-time buyers and those transferring ownership are unable to obtain fuel quota QR codes. The problem lies in the inability of the fuel quota issuance platform to access updated registration data from the DMT system in real time.
This technological disconnect is not merely a temporary glitch but the result of decades of underinvestment and poor system management. The current database, originally implemented in 1996, has become increasingly obsolete. Its maintenance by inadequately trained internal staff, rather than specialized developers, has further weakened system reliability and security.
The e-Motoring digitalization project, envisioned as the solution, has faced a troubled history. Despite being initiated years ago, it has been plagued by delays linked to infrastructure limitations, legal complications, and vendor disputes. The withdrawal of an international technology partner led to renegotiations and increased costs, further stalling progress.
Investigations by the Committee on Public Accounts (COPA) have added a troubling dimension. The committee has identified widespread irregularities, including fraudulent vehicle registrations and the disappearance of key investigation files. In March 2026, these findings prompted COPA to forward a detailed report to the Attorney General, marking a rare and serious escalation.
The situation raises critical questions about governance and accountability. Why was a tender awarded in 2018 to replace the outdated system never implemented? Official explanations cite the DMT’s failure to provide necessary premises, but critics argue this points to deeper administrative inefficiencies and possible internal resistance to reform.
Financial mismanagement is another area of concern. While citizens pay significant fees for registration and related services, there is little visible improvement in infrastructure or service delivery. This gap suggests systemic issues in budget allocation and oversight.
The ongoing crisis illustrates the tangible consequences of delayed modernization. Citizens face daily inconvenience, economic inefficiencies persist, and public confidence continues to decline. More importantly, the failure to digitize a critical government service contradicts the broader national vision of transitioning to a digital economy.
Ultimately, the DMT’s challenges reflect a larger issue confronting public sector reform: the gap between policy ambition and implementation. Without urgent corrective action, the promise of digital transformation risks becoming another unrealized goal.