Sri Lanka’s fragile trade recovery is facing a new test as the Gulf crisis begins to disrupt global shipping networks and increase the cost of moving goods. As of March 2026, exporters and importers are grappling with delays, higher expenses, and growing uncertainty about the months ahead.

The country’s trade performance in early 2026 reflects a mixed picture. Export earnings for the first quarter are estimated at $3.8 billion, slightly below the $4.0 billion recorded in the same period last year. Meanwhile, imports have risen to around $4.5 billion, up from $4.2 billion, widening the trade deficit and putting additional pressure on foreign exchange reserves.

At the heart of the disruption is the strategic importance of the Gulf region to global shipping. Many of Sri Lanka’s trade routes depend on transit points and shipping lanes that are now affected by geopolitical tensions. Shipping companies have responded by increasing freight rates and adding war-risk surcharges, significantly raising the cost of trade.

For exporters, the impact is twofold. First, logistical challenges such as rerouted shipments and port congestion—are causing delays in delivery schedules. Second, higher costs are eroding competitiveness in international markets. This is particularly concerning for sectors like tea, which rely heavily on Middle Eastern buyers, and apparel, which operates on tight margins.

Importers are facing their own set of challenges. The rise in global oil prices has increased the cost of fuel, which affects everything from shipping to local transportation. As a result, businesses are paying more for raw materials and finished goods, costs that are often passed on to consumers.

Despite these challenges, some resilience is evident. Colombo Port continues to handle strong volumes, with throughput in the first quarter estimated at around 1.8 million TEUs. However, industry experts caution that this may not last if disruptions intensify or if global demand weakens.

The broader concern is the potential for a prolonged crisis. If tensions in the Gulf persist, Sri Lanka could face sustained high shipping costs, reduced export demand, and further strain on its balance of payments. The situation is particularly sensitive given the country’s recent economic difficulties and ongoing recovery efforts.

In response, businesses are exploring alternative markets and supply chains, while policymakers are closely monitoring developments. However, options are limited in the short term, given Sri Lanka’s dependence on established trade routes and external energy supplies.

Ultimately, the Gulf crisis highlights the interconnected nature of global trade and the vulnerability of small, open economies like Sri Lanka. While the immediate impact is manageable, the longer-term outlook will depend on how quickly stability returns to one of the world’s most critical economic regions.

Sri Lanka’s banking industry is adjusting its operations in response to renewed fuel and energy constraints, while striving to maintain uninterrupted services for customers across the country.

The Sri Lanka Banks’ Association has confirmed that banks will continue functioning on all five working days, reinforcing their designation as an essential service within the national economy. This assurance comes amid temporary conservation measures aimed at mitigating the impact of global fuel supply disruptions.

While weekday operations remain intact, a key change affects midweek schedules. On Wednesdays, banks will operate on a reduced timetable, opening from 9 a.m. to 1 p.m. This adjustment is designed to lower energy consumption without significantly affecting customer access to financial services.

For the public, the message is clear: banking services remain available, but efficiency and adaptability are now essential. Customers can still access core services throughout the week, ensuring continuity for both personal and business transactions. However, authorities are urging a shift in how these services are used.

Digital banking has emerged as a central pillar of the sector’s response. The Sri Lanka Banks’ Association is encouraging customers to increasingly rely on mobile and online platforms for everyday transactions. From fund transfers to bill payments, many services can now be completed without visiting a physical branch.

This push toward digitalisation is not solely about convenience it is also a strategic response to current constraints. Reducing in-person visits helps cut fuel consumption linked to transportation, while also easing pressure on bank branches operating with limited hours.

The broader context underscores the importance of these measures. Sri Lanka continues to face external economic pressures, including volatile global energy markets and supply chain disruptions. In this environment, even small reductions in fuel usage can contribute to national stability.

At the same time, the banking sector’s approach reflects lessons learned from previous crises. By maintaining operations even in a limited capacity banks are helping to preserve public confidence and ensure that financial systems remain functional.

Customers are also being called upon to play a role. By minimising non-essential travel and using digital alternatives, individuals can support wider national efforts to conserve energy and manage resources more effectively.

Despite current challenges, there is cautious optimism within the sector. The Sri Lanka Banks’ Association believes that global uncertainties affecting fuel supplies will stabilise in the near future, paving the way for a return to normalcy.

Until then, Sri Lanka’s banks are demonstrating resilience adapting operations, embracing technology, and supporting the country through another period of economic adjustment.

An insurance scheme for pig farmers has been introduced by the Agricultural and Agrarian Insurance Board in collaboration with the Department of Animal Production and Health.

The scheme provides insurance coverage for breeding pigs maintained at commercial-scale farms, offering compensation for deaths caused by accidents and diseases affecting the animals.

The insurance is available for breeding pigs aged between six months and four-and-a-half years.

The maximum insured value per animal has been set at Rs. 200,000, based on either the replacement cost or the production cost. Claims can be made only for deaths resulting from insured causes.

Farmers are also required to maintain their farms in accordance with the biosecurity guidelines recommended by the Department of Animal Production and Health.

The Central Environmental Authority (CEA) and the Consumer Affairs Authority (CAA) have raided a factory in Bandaragama, Kalutara District, for manufacturing banned polythene ‘lunch sheets’.

The raid was carried out on Monday (10), during which authorities seized a stock of prohibited polythene products being produced at the facility. The confiscated items have been taken into CAA custody for further legal action.

The CEA stated that legal proceedings will be initiated against the factory owner under the National Environmental Act.

U.S. President Donald Trump said Washington is seeking talks with Iran, but claimed there is “nobody to talk to” following weeks of U.S.-Israeli strikes that he said had decimated the country’s leadership.

Speaking during a trophy presentation at the White House, Trump said, “We’re having a hard time. We want to talk to them, and there’s nobody to talk to. We have nobody to talk to. And you know what—we like it that way.”

He claimed that Iran’s military capabilities had been severely weakened, stating that its navy, air force, air defense systems and radar infrastructure had been destroyed, along with much of its leadership.

“Now nobody wants to be a leader over there anymore,” he added.

Despite the remarks, Trump reiterated that Washington’s objective remains preventing Iran from acquiring nuclear weapons.

“We’re not going to let them have nuclear weapons, because if they had them, they’d use them,” he said, repeating a justification for the war that critics argue is not supported by available evidence.

Trump also noted that Defense Secretary Pete Hegseth was in the White House Situation Room during the event, choosing to remain there rather than attend.

The president further claimed major battlefield gains, stating that key Iranian naval assets had been destroyed within days.

“They had a navy two weeks ago. They have no navy anymore. It’s all at the bottom of the sea—58 ships knocked down in two days,” he said.

Regional tensions have escalated since the United States and Israel launched joint strikes on Iran on February 28. The attacks have reportedly resulted in significant casualties, including senior Iranian leaders, while Iran has responded with missile and drone strikes targeting Israel and U.S.-linked assets across the region.

The enforcement of the law requiring all drivers and passengers travelling on expressways to wear seat belts, which was scheduled to take effect today (20), has been postponed.

The relevant Gazette notification has been issued by Minister of Transport, Highways and Urban Development, Bimal Rathnayake.

The second round of bilateral political consultations between Sri Lanka and Brazil was held today (20) at the Ministry of Foreign Affairs, Foreign Employment and Tourism in Colombo, marking a key step in strengthening longstanding ties between the two nations.

The meeting was co-chaired by Foreign Ministry Secretary Aruni Ranaraja and Ambassador Susan Kleebank, Brazil’s Secretary for Asia and the Pacific.

Discussions reviewed progress since the first round of consultations in 2022 and explored new areas for cooperation. Both sides agreed to increase bilateral trade to USD 1 billion by 2030, while emphasizing the need to expand engagement in line with evolving global economic trends.

The two countries also committed to expediting pending agreements in several sectors, including defence, law enforcement, countering human smuggling and transnational crime, traditional and Ayurvedic medicine, and diplomatic training.

Officials noted that the Dairy Livestock Project and the Sugarcane Project have been finalized and are expected to be signed soon with support from the Brazilian Cooperation Agency.

Preparations for President Anura Kumara Dissanayake’s upcoming state visit to Brazil were also discussed.

Both sides highlighted the importance of strengthening parliamentary ties, with plans to revive Parliamentary Friendship Groups and exchange delegations. A women’s parliamentary group from Brazil is also expected to visit Sri Lanka.

New opportunities for collaboration were identified in key sectors such as agriculture, animal husbandry, agricultural research, ports and shipping, and sports.

The two countries further agreed to continue close cooperation in both bilateral and multilateral forums.

Showers or thundershowers may occur at several places in Western, Sabaragamuwa, Northwestern and Uva provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts after 1.00 pm.

Mainly dry weather will prevail over the other parts of the island.

Misty conditions can be expected at some places in Central, Sabaragamuwa and Uva provinces and in Galle, Matara, Kaluthara and Kurunegala districts during the early hours of the morning.

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

By Adolf

Can the UN stop Trump’s ill-conceived Dreams? The answer is NO . Then why do we need a UN? 

The United Nations (UN) is the world’s foremost international organization, created in 1945 to maintain international peace and security, promote cooperation, human rights, development, and humanitarian relief. However, in recent years there has been growing debate about its effectiveness and cost — especially given ongoing global conflicts. Some critics argue the UN has failed to prevent or resolve major disputes, while others point out the practical constraints the institution works under. Therefore should cut its operations by 75% . They are urging US President Trump the cowboy of international diplomacy to make this happen. 

Annual Costs of the UN

The UN’s finances are divided into several major budgets:

• Regular Budget: This covers the core operations of the Secretariat — administration, policy, human rights, development, and more. For 2026, the approved regular budget is approximately $3.45 billion.  

• Peacekeeping Budget: Separate from the regular budget, this funds peace operations in conflict zones (often visible through “blue helmets”). For the 2025-26 fiscal year, this budget is roughly $5.38 billion, down slightly from previous cycles.  

• Humanitarian and Development Funding: UN agencies like the World Food Programme, UNICEF, and the Office for the Coordination of Humanitarian Affairs operate largely on voluntary contributions that can total tens of billions annually — for example, UNOCHA’s 2026 appeal was around €28 billion for humanitarian response globally.  

In total, when all agencies and programs are counted, the UN system mobilizes significant global resources each year, though direct budgets like the regular and peacekeeping ones remain under $10 billion combined. By comparison, global military spending — a proxy for what states choose to spend on defense — was estimated at about $2.7 trillion in 2024. Peacekeeping’s budget accounts for less than half of one percent of this total. 

Financial Strains and Payment Issues

The UN faces a serious financial crisis caused by unpaid contributions from member states. For example, the United States — traditionally the largest contributor — owed billions in missed payments, affecting both the regular and peacekeeping budgets. This has forced budget reductions, staff cuts, and concerns about the organization’s ability to carry out its mandates. In response to overdue payments and changing funding priorities, the UN approved budget and staffing cuts for 2026, including reducing posts by nearly 19% in the regular budget. 

Criticism of Effectiveness

Many critics argue the UN has struggled to prevent or effectively manage major conflicts:

• In Ukraine, the Security Council’s structure — with veto powers for permanent members — has limited strong collective action, particularly when one permanent member is directly involved.

• In Venezuela, political and humanitarian crises have persisted for years, with limited UN success in catalyzing lasting solutions.

• Discussions about Middle Eastern tensions — including with Iran — highlight broader geopolitical limitations where member states pursue differing interests.

These conflicts have had devastating impacts on civilians’ lives and livelihoods. Critics point to these outcomes as evidence the UN’s peace and security architecture needs reform.

However, defenders of the UN note the organization’s mandate is not to substitute sovereign decision-making by member states or to act like a global government with military enforcement powers. Peacekeeping missions, for example, operate where invited or mandated, and lack independent military force. They also point to situations in which UN missions have contributed to de-escalation, humanitarian aid delivery, protection of civilians, and post-conflict reconstruction — albeit imperfectly.

Debate on Reform

Calls for serious reform — including reducing bureaucracy — have persisted for decades. Some proposals include:

• Streamlining administrative overhead and overlapping mandates.

• Making peacekeeping mandates more realistic and focused.

• Reforming financing mechanisms to ensure reliability and equity.

• Pruning the benefits of the Staff and their families 

Some policymakers — including voices from the United States in recent years — argue for redirecting 75% of theefforts toward regional bodies or institutions like the Asian Development Bank (ADB) and World Bank for development and economic support. Whether these replace or complement UN functions is a subject of ongoing discussion.Proponents of reform argue cost reductions and efficiency are overdue; opponents caution that the alternative — a world without a central platform for diplomacy and cooperation — could reduce global coordination on critical issues like humanitarian crises, climate change, and refugee support.

Total Failure 

In summary, the UN costs member countries billions each year and faces both financial and operational challenges and incompetence . While there are legitimate debates about its effectiveness in specific conflicts, the organization also continues to play a ineffective role in diplomacy, humanitarian assistance, and peace support. Reform advocates stress efficiency and relevance, while supporters warn that simply dismantling the UN risks losing a unique forum for international cooperation unless the effective areas of the UN is delegated to other agencies. Unfortunately the UN is miserably failing and needs total overhaul or shutdown of its bureaucracy.

The decision by British Airways to resume direct flights between London Gatwick and Colombo from October 23, 2026, is being hailed as a boost for Sri Lanka’s connectivity—but it is also raising serious questions about competition, national carrier stability, and governance.

The new service, operating three times weekly with Boeing 777 aircraft, marks the airline’s return after years of absence. While the move is expected to stimulate tourism and strengthen links with the United Kingdom, analysts warn it could significantly disrupt the fragile recovery of SriLankan Airlines.

The Colombo–London route has long been one of SriLankan Airlines’ most profitable sectors, particularly for premium passengers. British Airways’ re-entry introduces direct competition for this high-yield market, potentially diverting lucrative business and premium economy travelers. With competitive pricing already announced—economy fares starting around £620 and business class exceeding $3,700 the UK carrier is clearly targeting both leisure and corporate segments.

The timing is particularly sensitive. SriLankan Airlines is currently navigating operational disruptions linked to Middle East tensions, which have forced cancellations of several regional routes. In response, the airline has been deploying additional flights to London to manage passenger demand, making the UK route even more critical to its revenue stream.

At the same time, the Government has abandoned privatization efforts and is pursuing a state-led restructuring of the airline. This includes a $210 million debt overhaul and an ambitious five-year plan aimed at expanding fleet capacity, increasing market share, and restoring profitability. Early indicators show some recovery, with passenger numbers and revenues rising, but the airline remains financially vulnerable.

Against this backdrop, the entry of a globally recognized carrier like British Airways presents a double-edged sword. On one hand, increased seat capacity and brand visibility could drive higher tourist arrivals from the UK. On the other, intensified competition could erode the national carrier’s margins at a critical stage of its recovery.

Industry observers note that while competition can improve service quality and pricing, SriLankan Airlines may struggle to match the scale, network connectivity, and brand strength of its British rival. This imbalance could shift market dynamics in favor of the foreign carrier unless the local airline accelerates its restructuring efforts.

Ultimately, the return of British Airways underscores both opportunity and risk. It highlights Sri Lanka’s growing appeal as a destination while exposing the vulnerabilities of its aviation sector. The coming months will be crucial in determining whether SriLankan Airlines can withstand this competitive pressure or whether the market will tilt decisively toward international players.