August 03, Colombo (LNW): Cloudy skies can be expected over most parts of the island, the Department of Meteorology said in its daily weather forecast today (03).

Meanwhile, showers or thundershowers will occur at several places in Northern, North-Central, Eastern Central, and Uva provinces and in Hambantota and Kurunegala districts after 1.00 p.m.

Fairly heavy falls above 75 mm are likely at some places in these areas.

Several spells of showers will occur in Western and Sabaragamuwa provinces and in Galle, Matara and Puttalam districts.

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:
Several spells of showers may occur in the sea areas off the coast extending from Colombo to Matara via Galle.

Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph.

Wind speed can increase up to (50-55) kmph at times in the sea areas off the coast extending from Chilaw to Hambantota via Galle.

State of Sea:
The sea areas off the coast extending from Chilaw to Hambantota via Galle will be rough at times.

The wave height may increase about 2.5 m in the sea areas off the coast extending from Chilaw to Matara via Galle (this is not for land area).

For several years, the Sri Lankan badminton sport has been guided by the McLarens group. We have seen them present at every national-level competition in Sri Lanka, as well as at every international competition organized in the country, showcasing their skills on the badminton court. This is not due to any privileges granted, as the head of the McLarens was also the head of badminton; rather, because he carried the weight of badminton on his business acumen and moved forward.
Once again, this sponsoring love has been received by the International Badminton Championship organized in Sri Lanka. Instead of the work and love dedicated to a titled chair, but to the subject matter, McLarens had shown its all-encompassing space in its heart towards Badminton. Although not the warmth of the titled presidency, the warmth of McLarens love has reached this International competition. The competition at hand is the 2025 Sri Lanka Junior International Badminton Championship, showcasing the abilities of young players who excel in badminton cultures that have gained a name in the world on Sri Lankan soil.
Even though it is not uncommon for a household prominence of McLarens which reigns high in Sri Lanka’s prominent business sector, to present itself as the main sponsor of the 2025 Sri Lanka Junior International Badminton Championship, scheduled to be held from August 5 to 8 at the New Sanirō Sports Complex in Naiwala, it must be remembered that this is always a lovely intervention that should be talked about.
This prestigious international tournament, hosted by the Sri Lanka Badminton (SLB) and endorsed by the Badminton World Federation (BWF) and Badminton Asia (BA), will shine with the upcoming stars of the sport at the New Saniro indoor sports arena in Naywa. Furthermore, this event will also provide an opportunity to showcase another valuable Sri Lankan indoor facility to the world, making it an invaluable asset for New Saniro.
This competition, held as contests for categories below 19 years, below 17 years, below 15 years, and below 13 years, in male and female singles, doubles, and mixed doubles, serves as an event that influences world rankings in accordance with BWF’s official rules and regulations. It is undoubtedly a great opportunity for numerous young players in Sri Lanka, as well as the world’s talented young players, to enhance their badminton careers and aim for world rankings.

Sri Lanka’s new trade protection regulations, approved this week by Parliament, have sparked fierce opposition from local importers, who warn that the measures could force them to shut down their businesses altogether. The contentious rules, introduced under the Anti-dumping and Countervailing Duty Act No. 2 of 2018, aim to protect local producers from what the government calls “unfair trade practices” and an influx of low-priced imports.

The regulations were formally endorsed during a joint meeting of the Parliamentary Committees on Trade and Public Finance, chaired by Labour Minister Wasantha Samarasinghe and opposition MP Dr. Harsha de Silva. The updated rules were previously gazetted in Extraordinary Gazette No. 2429/32 dated 27 March 2025.

Officials argue the move is essential to shield domestic industries from foreign competition, saying it would “provide relief regarding damages and threats caused by unfair trade activities and sudden imports.” These measures include the imposition of additional tariffs or restrictions on imported goods suspected of being dumped into the Sri Lankan market at below-market prices.

However, the decision has triggered a backlash from importers, especially those dealing in ceramic tiles, who claim the government’s actions favor a small group of influential businessmen at the expense of the broader importing sector. Some allege that the local tile industry is dominated by a handful of powerful individuals—including a prominent casino owner—who import raw materials, conduct minimal processing, and sell products under the label of “value addition.”

“These regulations are not about protecting an industry. They’re about protecting a monopoly,” said one importer, speaking anonymously due to fears of political repercussions. “Dozens of legitimate businesses will be wiped out just to safeguard the profits of two or three well-connected manufacturers.”

Importers also point out that Sri Lanka lacks the capacity to meet local demand for tiles, which will likely lead to a supply shortage, price hikes, and further strain on the construction sector already grappling with high costs.

The meeting also briefly addressed concerns in the cooperative sector, where it was revealed that no formal loan provision currently exists for cooperative societies. Minister Samarasinghe called for a formal inquiry into this issue and proposed summoning provincial commissioners and governors for a special parliamentary session.

As the government pushes forward with its trade defense agenda, calls are growing louder for a balanced approach that safeguards local production without strangling legitimate import-driven enterprises

Sri Lanka’s most valuable brands are showing strong signs of recovery and growth, mirroring the broader economic rebound underway in the country. According to the “Sri Lanka 100 – 2025” rankings released by Brand Finance, the collective value of the nation’s top 100 brands has risen to Rs. 559.4 billion, marking a 6% increase compared to the previous year.

 Following the country’s severe economic crisis in 2022 and a cautious rebuilding phase in 2023, a more stable macroeconomic environment and bold policy reforms in 2024 have enabled corporate confidence to return. Economic growth reached 5% in 2024, and leading brands have capitalised on this momentum, driven by digital transformation, strategic repositioning, and strengthened consumer trust.

 Bank of Ceylon (BOC) emerged as Sri Lanka’s most valuable brand in 2025, with a brand value of Rs. 57.4 billion. The bank’s strong financial performance, particularly an 84% rise in net interest income to Rs. 167.6 billion, has been key to this achievement. Its widespread recognition, extensive branch network of over 600 outlets, and trusted reputation in both urban and rural markets have cemented its place at the top.

 Commercial Bank and Dialog Axiata secured second and third place, with brand values of Rs. 46.6 billion and Rs. 35.4 billion, respectively. Notably, Keells was ranked Sri Lanka’s strongest brand, scoring a Brand Strength Index (BSI) of 90.2/100 and earning a AAA+ rating, thanks to its exceptional consumer familiarity and retail presence.

 Among the most exciting developments in the rankings is the debut of PickMe, the ride-hailing and digital services platform, which entered at 29th place with a brand value of Rs. 4.3 billion. Since its 2015 launch, PickMe has evolved into a full-fledged digital ecosystem with services spanning food delivery and logistics. Its successful IPO in 2024 underscored investor confidence in Sri Lanka’s homegrown tech sector. With over 100,000 rides completed daily and a 164% growth in ride volumes, PickMe is now an essential part of daily life for many Sri Lankans.

 Brand Finance Sri Lanka Chairman Ruchi Gunewardene noted that the rise in brand value reflects more than just numbers—it shows “a return of consumer confidence and trust.” He emphasized that brands excelling in accessibility, innovation, and relevance will be the ones to thrive in a competitive, post-crisis economy.

 As inflation stabilizes and policies remain predictable, Sri Lanka’s leading brands are now positioned not just for recovery—but for long-term, sustainable growth.

As India deepens its global trade engagements, most recently through a landmark Free Trade Agreement (FTA) with the United Kingdom, Sri Lanka faces mounting pressure to expedite its own stalled Economic and Technology Cooperation Agreement (ETCA) with its closest neighbour and largest trading partner. The Indo-Lanka Chamber of Commerce and Industry has strongly urged the Sri Lankan government to learn from the UK-India FTA and revive momentum on finalising a bilateral trade pact that could unlock vast economic potential for the crisis-hit island.

 The UK–India FTA, signed earlier this year, is expected to boost the UK economy by £4.8 billion annually, while providing improved market access, regulatory cooperation, and investment flows. The Indo-Lanka Chamber says Sri Lanka stands to benefit even more due to its geographic proximity, cultural ties, and existing economic relationship with India.

 “This is a powerful example of what can be achieved through a well-structured bilateral agreement,” the Chamber said in a statement. “Sri Lanka is far better positioned geographically than the UK to engage with India. We share centuries of trade, cultural and historical links, and India continues to be our top trading partner.”

 India accounted for nearly US$5.4 billion in total bilateral trade with Sri Lanka in 2023, according to Central Bank data, with Sri Lankan exports to India amounting to approximately US$900 million. The Chamber believes these numbers could grow significantly under a modernised framework like ETCA, which would enhance preferential access, draw Indian investment into key sectors, and integrate Sri Lanka more deeply into regional value chains—crucial for the country’s post-crisis recovery.

 Despite these opportunities, progress on ETCA has remained stagnant for over seven years. Introduced during the Yahapalana administration in 2016 as an extension to the existing Indo-Sri Lanka Free Trade Agreement (ISFTA), the ETCA proposal faced intense opposition from nationalist groups, trade unions, and several political parties—including elements of the current ruling alliance. Critics feared job losses and alleged that the agreement could allow an influx of Indian professionals into the domestic job market, although these claims were largely unsubstantiated by official drafts.

Now, with Sri Lanka facing a narrow path to recovery following the 2022 economic collapse, businesses argue that economic pragmatism must override political posturing. The Indo-Lanka Chamber emphasized that India’s rise as a global economic power makes it an indispensable partner, and Sri Lanka must act before it is further sidelined in South Asia’s evolving trade dynamics.

 “India is not just a strategic partner—it is our immediate neighbour and a growing economic powerhouse,” the Chamber said. “As countries like the UK reap tangible benefits from FTAs with India, Sri Lanka must not hesitate. A revived ETCA could deliver jobs, boost investor confidence, and reposition Sri Lanka as a regional trade hub.”

 With nations aggressively pursuing bilateral and multilateral trade deals worldwide, Sri Lanka’s next move could determine whether it remains a passive observer—or an active participant—in the regional economic resurgence.

In a bold step toward modernising governance and unlocking the potential of a digital economy, the Government of Sri Lanka has announced that a national Digital Identity (ID) system will be launched by April 2026. Officials say the move will simplify citizen access to public services, improve transparency, and lay the groundwork for a more inclusive digital economy—while ensuring that citizen privacy and data protection remain paramount.

 The project, led by the Ministry of Digital Economy, is being implemented under the Digital Economy Initiative, which aims to position Sri Lanka as a regional digital hub by 2030. The system is funded through a LKR 10.4 billion grant from the Government of India, significantly reducing the financial burden on Sri Lankan taxpayers.

 Replacing the decades-old physical National Identity Card (NIC) system, the digital version will be based on MOSIP (Modular Open-Source Identity Platform)—a secure, customisable, open-source digital ID framework already adopted by several countries including the Philippines, Ethiopia, Morocco, and Togo. Over 130 million people globally now use MOSIP-powered digital IDs.

 The government says it evaluated three options: building a local system, using a commercial proprietary platform, or adopting an international open-source solution. MOSIP was chosen for its cost-efficiency, flexibility, and sovereignty-friendly architecture. Unlike proprietary systems that risk vendor lock-in and carry high recurring costs, MOSIP allows full government control of data, is customisable, and can be audited and updated independently.

 A certified Indian systems integrator will handle the initial MOSIP customisation for Sri Lanka, while local IT professionals will be trained to run and maintain the system long-term. Data collection will be managed solely by the Department for Registration of Persons, and no biometric or personal data will be collected until the system is fully under Sri Lankan control.

 The government will own and operate the infrastructure, and Sri Lanka CERT (Computer Emergency Readiness Team) will conduct a full security audit before the system goes live. To address public concerns, the Ministry stressed that citizen data will be encrypted using multi-layer protection, ensuring data security both during transmission and while stored.

 Importantly, the Ministry clarified that MOSIP is not India’s Aadhaar system, though it draws inspiration from its functionality. Developed by a global consortium of identity and cybersecurity experts, MOSIP has had no reported breaches, further reinforcing its credibility.

 Officials say this digital ID initiative is not just a technological upgrade—it is a national transformation. It will streamline access to both public and private sector services, reduce fraud, enhance efficiency, and enable digital authentication across sectors. Most crucially, it aims to build public trust by prioritising transparency, privacy, and local ownership.

 Calling for public support, the Ministry urged stakeholders to focus on verified facts, not unfounded fears. “This is a system designed for our future,” the Ministry stated. “Digital ID is the backbone of a modern economy and a key enabler of inclusive, secure governance.”

Despite a slight reduction from previous rates, Sri Lanka has been slapped with a significant 20% tariff in the latest list of revised reciprocal tariff rates announced by former U.S. President Donald Trump through an executive order. The move, while reducing Sri Lanka’s earlier rate by 10 percentage points, still places the country among a cluster of nations subject to heavy U.S. import duties amid a tightening of trade policy tied to national security and economic alignment.

Sri Lanka now shares the 20% tariff band with other regional peers like Bangladesh, Vietnam, and Malaysia (19%), and is slightly above some nations such as Afghanistan and African states which have been granted a lower 15% rate. By contrast, India—seen as a key economic rival in the region—was hit with a steeper 25% duty, pointing to broader U.S. frustrations with its trade balance and alignment on strategic issues.

Cambodia, which has seen rapid export growth following its macroeconomic reforms and dollarization in the 1990s, secured a slightly more favorable 19% tariff rate. Cambodia’s success in stabilizing its economy and attracting foreign investment by curbing currency manipulation and exchange rate distortions stands in contrast to nations like Sri Lanka, which continue to grapple with structural imbalances.

The executive order cited national security and trade alignment as core justifications for the tariff schedule. “Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States,” the order noted, adding that such actions “signal their sincere intentions to permanently remedy the trade barriers” that contributed to a “national emergency.”

In contrast, the U.S. administration signaled frustration with other nations that either failed to offer satisfactory terms in negotiations or did not align adequately with U.S. strategic interests. “There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently,” Trump stated in the order.

Sri Lanka’s inclusion in the 20% category comes despite concerted diplomatic efforts. Treasury Secretary Harshana Suriyapperuma led a negotiating team in multiple discussions with the Office of the U.S. Trade Representative, while President Anura Kumara Dissanayake also held direct online consultations in hopes of securing more favorable terms.

However, Trump’s statement leaves the door open for future revisions. “Certain foreign trading partners identified in Annex I to this order have agreed to, or are on the verge of concluding, meaningful trade and security agreements,” he said, hinting that tariff adjustments may be possible “until such time as those agreements are concluded.”

Brazil, which maintains a trade surplus with the U.S., was granted a more favorable 10% tariff following sustained pressure and diplomatic engagement—suggesting that countries willing to strike broader bilateral deals may yet secure relief.

For Sri Lanka, while the 20% rate marks a step down from previous levels, the high tariff remains a barrier to export competitiveness in the U.S. market. Going forward, deeper economic alignment and strategic engagement with Washington could be key to unlocking further concessions.

Sri Lanka finds itself on the precipice of both opportunity and risk as it is now out of the Intensive Care Unit after four years in economic crisis ailment, and it has to follow a path towards inclusive and transformative growth that ensures debt sustainability, avoiding future crises for the benefit of all Sri Lankans.

To address this critical need of getting discharged from the post ICU unit fully recovering from the economic ailment, the country should achieve economic development attracting foreign investments and modern technology from overseas, former Prime Minister Ranil Wickremasinghe asserted.

Mr Wickremesinghe has suggested a wider economic strategy for Sri Lanka, underlining the need for capital and technology to drive growth.

He noted that countries like China and Vietnam have successfully raised capital investment and technology from abroad and called on Sri Lanka to follow suite in order to increase per capita income as well as achieve sustainable development.

If Sri Lanka’s economy is to move beyond its current fragile state, he said that integration and cooperation with the Indian economy must be a priority

The former Premier was speaking in Rajagiriya this week at the launching ceremony of the latest book on five laws for economic sustainability and causes of economic crisis in 2022 titled “   “Arthikaye Panchayudhaya “written by former Minister Bandula Gunawardena who has already written and published more than 55 books on the subject of economics.    

‘Panchayudha’ is the five divine weapons including Discus, Conch, Mace Sword and Bow used by God Vishnu There is also a famous Panchayudha Stotram which is chanted for all kinds of protection. It is highly beneficial to people suffering from phobias.

Mr Wickremasinghe noted that likewise five laws for economic stability, the Central Bank Law, Public Debt Management Law, the Public Finance Act, Economic Transformation Law and the New Anti Corruption Act are the arms now in place toward building resilience and ensuring a stronger economic trajectory. 

It will pave the way towards economic sustainability through disciplined fiscal management and debt restructuring.

Focusing on five key areas—economic stability, energy security, education reform, agricultural productivity, and poverty reduction—will be critical for Sri Lanka to navigate 2025 successfully

Attracting foreign direct investment (FDI) in sectors like manufacturing, tourism, logistics, power and technology is vital for recovery and long-term growth. 

Addressing the energy crisis is critical, Mr Wickremasinghe said adding that renewable energy sources—solar, wind, and hydropower—will reduce dependence on costly fuel imports while bring into line with global sustainability trends.

In this context “Sri Lanka cannot go forward by antagonizing India has helped the island nation as and when it’s in difficulty as its recent gesture of providing US$ 4 billion to overcome economic crisis has saved the country from possible economic disaster.

He warned that Sri Lanka could not move ahead with out large-scale foreign investments, and the holding up of the $ 700 million Adani project alone was a massive setback to the recovery of the country’s economy.

Adani’s alone is $ 700 million. Not a joke. We require that for recovery,” He explained, adding that other projects of development in Trincomalee could draw in another $400–500 million. “Imagine—a billion plus investments worth of total stalled,” he stated.

He warned that renegotiating agreements or tariffs with energy companies, including the Adani Group, can deter future investment, particularly in the emerging field of energy, where bids for billions of dollars’ worth of proposals are in the pipeline.

He also highlighted Sri Lanka’s continuing risk factors in the economy, which can force investors to charge higher for power projects.

Particularly referring to the Adani wind farm agreement inked during his tenure, Wickremesinghe stated that an agreement signed must be honored.

He added that attempts at renegotiation can harm the credibility of the country. “We established a benchmark for the value, with a rate of 8.26 US cents a unit. Changing this now will send a negative signal to investors.

The Sri Lankan government is set to revise generous tax holidays and exemptions granted to mega and mixed development ventures under the Strategic Development Act (SDA) and the Colombo Port City Act, following strong recommendations from the International Monetary Fund (IMF).

In its 2023 Governance Diagnostic Assessment, the IMF warned that prolonged and broad tax concessions are undermining the country’s ability to generate revenue and repay debt sustainably. It specifically called for the phasing out of the SDA, suggesting it be replaced with a more targeted Priority Investment Project Act.

The IMF has urged Sri Lanka to reduce tax holiday periods — some of which extend up to 40 years — to more reasonable durations and remove exemptions for projects not deemed truly strategic.

Projects within the Colombo Port City, developed under significant Chinese investment, have been granted sweeping tax exemptions, including waivers on customs duty, VAT, and other levies. The Port City Commission currently determines which businesses qualify for tax concessions, in consultation with the President or relevant minister, under the label “Business of Strategic Importance” (BSI).

However, the IMF is pressing for stricter, rule-based criteria and greater transparency in awarding such incentives. Amendments to the Port City Act are planned for October 2025, while the SDA will be revised by August 2025, as part of the government’s structural reform agenda.

Despite earlier promises to halt new exemptions, 24 companies have already been gazetted as eligible for BSI status without IMF consultation. These approvals — including four primary, three duty-free, and 17 secondary businesses — will not be reversed due to legal concerns, the government admitted.

Concerns have also been raised about Chinese investors pushing for additional tax breaks in exchange for backing election campaigns of the JVP/NPP alliance, adding a political dimension to the economic debate.

Sri Lanka’s high corporate tax rate (30%) — in stark contrast to regional peers like Cambodia (20%), Vietnam (20%), Thailand (15%), and Singapore (17%) — has been blamed for driving businesses to set up in more stable, low-tax jurisdictions such as Dubai. Some fear that companies may now shift to the Port City enclave to benefit from its exemptions, potentially causing revenue leakage from the domestic tax base.

The IMF cautioned that such unchecked exemptions were a key contributor to Sri Lanka’s financial crisis. It emphasized that a sound investment environment cannot rely solely on tax breaks but must be supported by stable governance, legal reforms, and monetary credibility.

Sri Lanka has agreed to submit monthly reports to the IMF on all tax exemptions granted, as part of its commitment to restoring fiscal discipline. Regulations for registering Port City offshore companies and imposing new investor taxes were also submitted to Parliament this week.

As the country continues its recovery path under the IMF program, the government appears poised to tighten its tax incentive framework to ensure better revenue collection, reduce corruption risks, and promote sustainable foreign investment.