Marking a significant milestone in Sri Lanka–Vietnam relations, the Sri Lanka–Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held today (May 8) at the Hilton Colombo.

The forum was jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board (EDB), in parallel with the State Visit of Vietnamese President Tô Lâm, who also serves as General Secretary of the Central Committee of the Communist Party of Vietnam.

President Tô Lâm and Prime Minister Dr. Harini Amarasuriya attended the event, according to the President’s Media Division (PMD).

The forum highlighted the longstanding bilateral relationship between the two countries and reaffirmed their shared commitment to strengthening economic cooperation.

According to the PMD, the primary objective of the event was to expand bilateral economic ties through enhanced trade, investment promotion, and tourism cooperation.

The forum also served as a platform for exploring new areas of collaboration, strengthening business-to-business engagement, and improving market access by bringing together senior government officials, entrepreneurs, and industry leaders from both nations.

During the event, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen ties between the two countries and their peoples.

Six Memoranda of Understanding (MoUs) covering several key areas of cooperation were also signed during the forum.

A notable development at the event was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the forum, the Export Development Board organised a business networking session, enabling Sri Lankan and Vietnamese entrepreneurs to engage directly and explore trade opportunities.

The PMD noted that the event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and building resilient supply chains.

Representing Sri Lanka at the forum were Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Minister of Environment Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, and several senior government officials and business leaders.

The Vietnamese delegation included senior Politburo members and ministers, among them Nguyen Duy Ngoc, Nguyen Thanh Nghi, Phan Van Giang, Luong Tam Quang, and Foreign Minister Le Hoai Trung.

Due to the low-level atmospheric disturbance in the vicinity of Sri Lanka, the prevailing showery condition over the island is expected to continue during the next few days

Showers or thundershowers will occur at most places of the island after 1.00 pm.

Heavy falls above 100 mm are likely at some places in Western, Sabaragamuwa, Central, Uva, North-western and North-central provinces and in Galle, Matara and Mannar districts.

Showers are likely in the Western, Southern and Northern provinces during the morning too.

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

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

Former SriLankan Airlines Chief Executive Officer Kapila Chandrasena was found dead at a residence in Colpetty on Friday (08), in a shocking development linked to the ongoing investigations surrounding one of Sri Lanka’s largest aviation corruption scandals.

Police Spokesman ASP F.U. Wootler stated that Chandrasena is suspected to have died by suicide. Police have launched further investigations into the incident.

The death comes just days after new legal developments in the long-running Airbus bribery case, including efforts by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to revoke Chandrasena’s bail.

A dramatic corporate alliance between billionaire investor Dhammika Perera and W.K.H. Wegapitiya has triggered intense debate over market concentration, political influence, and energy security in Sri Lanka. The acquisition of a 50 percent stake in LAUGFS Holdings through Vallibel Three (Pvt) Ltd has effectively created one of the country’s most influential private-sector partnerships.

The deal, finalized between late 2025 and early 2026, emerged at a time when LAUGFS Holdings was struggling under mounting financial pressure. The company had accumulated heavy bank borrowings, soaring finance costs, and increasing operational strain following years of expansion across energy, retail, and manufacturing sectors. Industry analysts believe the partnership was less an ordinary investment and more a strategic corporate rescue operation designed to stabilize one of Sri Lanka’s most sensitive energy suppliers.

The restructuring also marked a significant leadership transition. Co-founder Thilak de Silva exited the company by transferring nearly 40 percent of his stake, clearing the way for the new alliance. Soon after, Mithila Wegapitiya was appointed Vice Chairman with responsibility for financial restructuring and overseas expansion.

However, critics argue that the new partnership raises deeper concerns about economic concentration. LAUGFS already commands a dominant position in Sri Lanka’s LP gas market and controls critical infrastructure including the Hambantota LPG Terminal, considered one of South Asia’s largest LPG transshipment facilities. With Dhammika Perera’s extensive financial network and political influence now tied directly to the company, concerns are growing over whether market competition could weaken further.

Perera has long maintained close connections with political power centers in Sri Lanka and has previously held ministerial responsibilities. Opposition voices and economic observers warn that the combination of political influence, banking leverage, and strategic energy assets could create an imbalance in regulatory oversight. Some analysts fear smaller competitors may struggle to survive against a conglomerate with access to major financing channels and state-level influence.

The timing of the merger has also intensified public scrutiny because consumers are already facing rising living costs. On May 7, 2026, LAUGFS Gas announced steep LP gas price increases citing global market pressures. The price of a 12.5 kilogram cylinder rose by Rs. 545 to Rs. 6,245, while a 5 kilogram cylinder increased by Rs. 220 to Rs. 2,500. For many households already burdened by inflation, the increases renewed concerns about dependence on a limited number of gas suppliers.

Supporters of the deal insist the partnership could strengthen Sri Lanka’s long-term energy security by improving operational efficiency and ensuring uninterrupted supply chains. Yet critics maintain that the emergence of this new corporate giant represents more than financial recovery. They argue it reflects the growing concentration of strategic national industries into the hands of politically connected billionaires with expanding influence over both the economy and public life.

Sri Lanka is intensifying efforts to deepen economic cooperation with India through a new wave of investments in technology, manufacturing, logistics and digital finance, following recent discussions between Industry and Entrepreneurship Development Minister Sunil Handunneththi and representatives of the Indian CEO Forum.

The discussions come at a crucial moment for Sri Lanka’s fragile post-crisis economy. After the island’s unprecedented economic collapse in 2022, Colombo has increasingly turned to regional partners for investment, with India emerging as one of the country’s most influential economic stakeholders. Officials believe closer ties with Indian businesses could accelerate industrial recovery, create employment and modernise Sri Lanka’s ageing infrastructure.

Among the proposals discussed were five priority investment projects intended to fast-track industrial development, alongside plans for joint ventures in pharmaceuticals, apparel, electronics and fintech. One of the most ambitious ideas was the proposed Bengaluru–Colombo technology entrepreneurship corridor, aimed at connecting Sri Lanka’s growing startup ecosystem with India’s globally recognised innovation hub in Bengaluru.

The move reflects a broader trend of rising Indian investment in Sri Lanka. The largest ongoing Indian-backed project remains the Colombo West International Terminal, developed by India’s Adani Ports in partnership with John Keells Holdings and the Sri Lanka Ports Authority. The $800 million deep-water terminal began operations in 2025 and is expected to handle 3.2 million containers annually, significantly expanding Colombo’s role as a South Asian transshipment hub.

According to Sri Lanka’s Board of Investment, the Colombo terminal project became the country’s single largest foreign direct investment contributor during the first nine months of 2025, injecting approximately $229 million into the economy.

India’s influence is also expanding in the digital payments sector. India’s Unified Payments Interface (UPI), operated through collaborations with LankaPay, is rapidly gaining acceptance across Sri Lanka’s tourism and retail sectors. Analysts say the system could simplify transactions for Indian tourists, who now represent one of the island’s largest visitor groups, while also accelerating Sri Lanka’s transition towards a cashless economy.

Supporters argue these initiatives could provide Sri Lanka with badly needed foreign exchange, technology transfer and employment opportunities. Improved port infrastructure could strengthen Colombo’s strategic role in Indian Ocean trade, while manufacturing partnerships may reduce import dependence and boost exports.

However, critics warn of growing economic dependence on India. Concerns have also emerged over transparency, sovereignty and geopolitical balancing, especially as Sri Lanka attempts to maintain strategic relations with both India and China. The controversy surrounding Adani Group’s suspended renewable energy ventures and international corruption allegations has further fuelled public debate over governance and accountability.

Economists note that the long-term success of Indian investments will ultimately depend on transparent agreements, environmental safeguards and whether ordinary Sri Lankans genuinely benefit through jobs, technology access and sustainable economic growth.

Sri Lanka’s looming electricity tariff revision has triggered a fierce national debate, with the Ceylon Electricity Board (CEB), regulators, and consumer groups clashing over whether another increase in power prices can be justified amid mounting economic hardship.

The controversy comes as the Public Utilities Commission of Sri Lanka (PUCSL) prepares to announce its final decision on May 9 following public hearings held at the BMICH earlier this week. At the center of the dispute are conflicting claims over the financial health of the state-owned electricity provider and the transparency of the pricing formula imposed under Sri Lanka’s International Monetary Fund-backed reforms.

The CEB insists that a tariff adjustment is unavoidable. According to projections by the National System Operator, the utility faces a deficit of nearly Rs. 38 billion during the second and third quarters of 2026. Officials attribute the shortfall to rising global fuel prices, reduced hydropower generation caused by dry weather, and technical failures at the Lakvijaya coal power plant.

Additional pressure has emerged from infrastructure losses linked to Cyclone Ditwah, which reportedly caused around Rs. 20 billion in damage to transmission and distribution networks. CEB officials argue that at least part of these recovery costs must eventually be passed on to consumers through revised tariffs.

The utility also cites longstanding debt burdens, including deferred fuel payments and mounting interest costs, as evidence that the electricity sector remains financially fragile despite earlier profits.

Yet critics argue the proposed increase is both unnecessary and unfair.

Consumer advocates and opposition voices point to previous CEB financial statements that reportedly showed surpluses exceeding Rs. 61 billion in 2023. Under PUCSL regulations, such profits are required to be “clawed back” and used to reduce future electricity charges rather than retained while consumers face additional increases.

The issue has become even more contentious after the Treasury pledged Rs. 15 billion in financial support to cushion the current deficit. Public interest groups argue that government subsidies, combined with carried-forward surpluses, should be sufficient to avoid burdening ordinary households already struggling with inflation and rising living costs.

Questions have also emerged about the efficiency of the CEB’s planning process. Energy experts speaking during the May 6 consultation accused the utility of consistently overestimating electricity demand while underestimating hydroelectric generation. Critics claim these forecasting errors artificially inflate the need for emergency thermal power purchases, which are significantly more expensive.

Environmental groups additionally criticized what they described as the CEB’s continued dependence on fossil fuels despite growing opportunities for cheaper renewable energy projects.

Public frustration was evident during the hearings, where consumer organizations demanded greater transparency in coal procurement contracts and the operational costs of individual power plants. Several speakers highlighted the social impact of repeated tariff revisions, noting that more than one million households have reportedly experienced electricity disconnections in recent years.

Despite the growing backlash, regulators appear likely to shield most domestic consumers from the proposed increase. Current recommendations suggest that approximately 95 percent of households and religious institutions could avoid higher charges through targeted subsidies.

The final ruling is expected to determine not only electricity prices for the coming months, but also public confidence in Sri Lanka’s broader IMF-backed economic reform program.

SriLankan Airlines is once again at the center of political and public debate after Right to Information disclosures exposed details of a controversial aircraft lease agreement that critics say raises serious concerns about accountability and long-term financial planning.

At the heart of the controversy is an Airbus A330-200, registered as 4R-ALT, which joined the airline’s fleet in June 2025 under an eight-year operating lease agreement. Although government officials celebrated the aircraft’s arrival as part of the national carrier’s recovery program, newly disclosed financial records have intensified scrutiny over the true cost of the arrangement.

Documents obtained after a lengthy battle before the Right to Information Commission show that the airline agreed to pay USD 275,000 per month for the aircraft. Over the duration of the agreement, which runs until June 2033, the total cost is expected to reach approximately USD 26.6 million.

The disclosures have prompted sharp criticism from opposition politicians and sections of the aviation sector, who argue that the government failed to clearly communicate the age and condition of the aircraft to the public.

Opposition MP Dayasiri Jayasekara accused authorities of presenting the aircraft as a fresh addition to the fleet while downplaying the fact that the Airbus is already 14 years old. He questioned why the state airline committed to a long-term lease on an aging aircraft at a time when Sri Lanka continues to face economic pressures and public spending constraints.

Additional concerns have focused on the aircraft’s operating efficiency. Information emerging through the RTI process suggested the plane had previously been retired by an Indonesian carrier because of comparatively high fuel consumption. Critics argue that although the lease rate appears lower than some previous contracts, maintenance and fuel expenses could substantially increase the real operational cost over time.

The issue has also revived broader concerns about transparency within SriLankan Airlines. The carrier initially resisted releasing details of the agreement, claiming the information was commercially sensitive. That position was later rejected by the Information Commission, which ordered the airline to disclose financial details linked to the lease.

Government ministers continue to defend the transaction, insisting the agreement reflects a more responsible approach compared with earlier administrations. Minister Bimal Rathnayake argued that the current lease is far cheaper than previous deals that allegedly left the country paying nearly USD 800,000 monthly for aircraft that were never delivered.

The controversy comes during a period of significant restructuring within the national airline. SriLankan Airlines has abandoned earlier privatization plans and is instead pursuing a state-led recovery strategy aimed at stabilizing operations and rebuilding the fleet.

The airline currently operates 23 aircraft, including 10 wide-body Airbus A330s and 13 narrow-body A320 and A321 aircraft. Officials hope to expand the fleet to 25 aircraft before the end of 2026.

At the same time, the carrier is attempting to resolve a long-running grounded aircraft crisis caused largely by engine shortages. Government statements revealed that previous administrations spent almost USD 9 million per month maintaining three grounded aircraft over several years.

While one grounded aircraft has already returned to service, authorities say the remaining aircraft are also expected to resume operations soon. However parliamentary discussions and oversight committee findings continue to highlight deeper structural issues, including reports that 31 of the airline’s 45 international routes were operating at a loss by late 2025, largely because of heavy financing costs and legacy debt burdens.