By: Staff Writer
November 20, Colombo (LNW): Sri Lanka is taking a decisive step toward strengthening the management of its public debt, with the Cabinet approving new regulations that formalise the powers and responsibilities of the Public Debt Management Office (PDMO) under the Public Debt Management Act No. 33 of 2024.
The new orders, published as Public Debt Management Orders No. 02 of 2025 in the Extraordinary Gazette No. 2459/52 on October 24, 2025, provide a structured framework for the PDMO to regulate primary dealers and oversee government securities transactions.
The Public Debt Management Act, enacted last year, transferred the authority to issue government loan securities from the Central Bank to the PDMO under Section 16, while Section 31 empowers the Minister of Finance to appoint primary traders and issue relevant directives.
The newly gazetted regulations operationalise these provisions, granting the PDMO authority to monitor compliance, issue operational guidelines, and evaluate the performance of primary traders involved in direct government security issuance.
Cabinet Spokesman Minister Dr. Nalinda Jayatissa explained that the regulations also formalise the PDMO’s role in overseeing non-dealer bidders and recommending corrective actions when necessary. “With the implementation of the Public Debt Management Act, these functions will be transferred to the Public Debt Management Office. The amendment outlines procedures such as monitoring primary marketers and issuing recommendations when required,” Dr. Jayatissa said at a recent post-Cabinet media briefing.
Analysts say that the creation of a dedicated debt management office represents a critical institutional strengthening step, particularly as Sri Lanka continues to manage high levels of public debt, estimated at over 115% of GDP in 2025. By centralising oversight of government securities issuance and primary dealer operations, the PDMO could improve transparency, ensure consistent compliance, and help reduce borrowing costs for the government.
However, experts also caution that the office’s expanded mandate must be accompanied by robust operational procedures and strong governance mechanisms to prevent regulatory lapses. Given the historical challenges in debt managementincluding delayed reporting, opaque auctions, and inconsistent policy enforcement effective implementation of the PDMO’s powers will be crucial to restoring investor confidence and stabilising domestic financial markets.
The PDMO’s oversight of primary dealers and non-dealer bidders is particularly significant for the government’s fiscal strategy. By monitoring performance and recommending corrective measures, the office can influence market liquidity, pricing of government securities, and the overall cost of borrowing. In the medium term, this could provide fiscal space for development projects, social programmes, and debt servicing, which are critical as Sri Lanka navigates ongoing economic recovery.
President Anura Kumara Dissanayake, in his capacity as Finance, Planning and Economic Development Minister, submitted the proposal to Parliament, signalling political support for strengthening institutional debt oversight. As the PDMO’s expanded mandate is phased in, the office will be tasked not only with operational supervision but also with fostering market discipline, improving transparency, and aligning debt issuance practices with broader economic objectives.
Economists say that if implemented effectively, the PDMO could play a pivotal role in stabilising Sri Lanka’s public finances, improving investor confidence, and reducing the risk of future debt crises. Its success, however, will depend on the clarity of regulations, adherence to governance standards, and proactive monitoring of market participants in a challenging economic environment.
Public Debt Office Powers Expanded to Shape Sri Lanka Economy
Sri Lanka’s Tea Sector Surges, But Faces Profit Margin Squeeze
By: Staff Writer
November 20, Colombo (LNW): Sri Lanka’s tea industry is witnessing a rebound in 2025, fuelled by rising production and export volumes yet falling prices and cost pressures are clouding its long-term growth potential.
According to official data, tea production in the first half of 2025 climbed to 135.74 million kg, up from 127.44 million kg a year earlier.
Export volumes also rose sharply in that period, hitting 126.81 million kg, compared to 119.11 million kg during the same months in 2024.
Despite increased output, the average price of Sri Lankan tea dropped markedly. In the first half of 2025, the national average auction price fell to Rs 1,158.54 (US$ 3.89) per kg, down from Rs 1,265.67 (US$ 4.12) in H1 2024.
This squeeze on prices comes even as export revenues climbed to Rs 221.29 billion (about US$ 743.12 million) during the same period — up from Rs 210.95 billion (US$ 687.02 million) in H1 2024.
In July 2025, Sri Lanka broke new ground in the tea export market. Shipments reached 24 million kg, a 13 percent rise year-on-year and the strongest monthly volume in 42 months.
By mid-year, the cumulative export volume hit 150 million kg, up 7 percent over the same period in 2024, while earnings reached an unprecedented Rs 263 billion (US$ ~884 million), with a record average Free-On-Board (FOB) price of US$ 5.87 per kg.
The first quarter of 2025 also saw solid gains. Production for January–March rose to 61.78 million kg, a 3.61 million-kg increase compared to Q1 2024.
But average auction prices dropped again: the national average fell to Rs 1,179.32 (US$ 3.98) per kg, down from Rs 1,286.99 (US$ 4.11) in the same quarter a year earlier.
On the macro side, the Central Bank of Sri Lanka reported a modest 2.9 percent year-on-year (y-o-y) increase in domestic tea output in May 2025, attributing the rise mainly to favorable weather.
Still, analysts caution that these volume gains may not translate into stronger profitability. A forecast from Capital Trust Securities projects that Sri Lanka’s tea production could rise further to 275–280 million kg in 2025, with export earnings hitting US$1.4–1.5 billion, up from US$1.435 billion in 2024.
But that projection comes with caveats: rising supply globally, currency fluctuations, and policy uncertainty could weigh on average prices.
In April 2025, the monthly output surged: tea production reached 26.39 million kg, a 23 percent year-on-year increase the highest April crop in five years.
Meanwhile, export revenue from January to April reached US$477.88 million, with export volume climbing to 81.41 million kg.
Sustainability and cost challenges remain key headwinds. Producers face mounting input costs, especially with proposed wage hikes for estate workers. Smallholder growers, who supply a significant portion of Sri Lanka’s tea, may also feel the impact of tighter margins and competition from value-added segments like tea bags and instant tea.
As Sri Lanka reclaims export momentum, the industry is at a critical inflection point. Growth in volume is clear but without better value retention, the sector risks undermining its competitive edge just as it seeks to scale sustainably into premium, value-added markets.
Sri Lanka’s Debt Tightrope: Restructuring Nears End, but Risks Rise
By: Staff Writer
November 20, Colombo (LNW): Sri Lanka is navigating a fragile recovery from its sovereign-default crisis, but deep-rooted vulnerabilities and emerging policy inconsistencies under the NPP government continue to cast doubt over long-term stability. By the end of 2024, Sri Lanka’s total public debt had climbed to nearly US$108 billion, including over US$40 billion in external debt. By 2025, the country faced an annual repayment requirement of more than US$3 billion, including restructured international sovereign bonds and bilateral obligations.
Although the country has made substantial progress, debt restructuring remains only partially complete. The IMF’s fourth review of Sri Lanka’s Extended Fund Facility, concluded in July 2025, confirmed that the external debt restructuring process is “nearly complete,” enabling the release of a new tranche of funding. However, analysts note that debt treatment has covered only part of the government’s total liabilities, leaving a significant portion of domestic debt and its associated risks untouched.
The Central Bank projects that under a successful restructuring baseline, Sri Lanka’s debt-servicing burden could fall to around 22 percent of GDP by 2026, with external repayments contained below 5 percent of GDP. However, under a scenario without comprehensive treatment, total debt-servicing could balloon to nearly 38 percent of GDP. This illustrates the country’s precarious dependence on continued creditor cooperation and steadfast reform implementation.
Despite the President’s budget-speech assurance that Sri Lanka can service its debts in the present financial environment, concerns remain. The NPP government faces growing criticism over policy inconsistency, particularly amid cabinet disagreements and politically driven decisions that risk undermining investor confidence. Some fear that populist policy choices may derail fiscal consolidation just as the country begins to stabilise.
The government’s goal of achieving full debt-servicing capability by 2028 hinges on strict adherence to IMF-aligned reforms, increased revenue collection, and strong governance. Any deviation whether due to political pressure or economic shock could jeopardise progress made so far.
As Sri Lanka inches toward the final stages of its debt restructuring, the path ahead remains narrow. The country has achieved meaningful milestones, but its recovery depends on policy coherence, disciplined execution, and maintaining public and investor confidence. Without these, Sri Lanka risks slipping back into a renewed cycle of instability
Sri Lanka Sets Sights on Record-Breaking Tourist Arrivals
November 20, Colombo (LNW): Sri Lanka is aiming for a landmark achievement in its tourism sector, with Foreign Affairs Minister Vijitha Herath projecting 2.4 to 2.5 million visitor arrivals by the end of the year.
The country recently celebrated its two-millionth tourist, marking a significant milestone for the industry.
Addressing a tourism collaboration event in Colombo, Minister Herath emphasised India’s position as the largest source of visitors, highlighting strong cultural connections, shared heritage, and seamless air links between the two nations. “Sri Lanka and India are natural travel partners,” he remarked.
Looking ahead, the country is targeting 4 million international arrivals and USD 8 billion in tourism revenue by 2030. The strategy prioritises sustainable practices, broader market engagement, enhanced connectivity, and digital innovation, in line with global initiatives such as the RIAM Declaration on the Future of Tourism, which encourages the integration of AI and technology into tourism planning.
Recent visa exemptions for Indian travellers, along with focused marketing campaigns, have contributed to a noticeable rise in arrivals. Sri Lanka is promoting a diverse range of experiences including city excursions, beach holidays, heritage trails, MICE tourism, destination weddings, whale watching, cricket tourism, and religious circuits such as Buddhist pilgrimage routes and Ramayana trails.
Minister Herath also encouraged Indian filmmakers and investors to explore opportunities in hospitality, events, and film production, reinforcing the longstanding and growing partnership between the two countries in tourism and cultural collaboration.
New Hotline Issued for Reporting Corruption and Drug Offences in Western Province
November 20, Colombo (LNW): The Sri Lanka Police have announced a dedicated contact number for members of the public wishing to report corruption or drug-related offences in the Western Province.
Earlier, Senior DIG Sanjeewa Dharmaratne’s number had been made available for this purpose in September 2025. Following his transfer to an administrative post, SDIG Sanjeewa Medawatte has now taken over as the Senior Officer in Charge of the Western Province.
Residents can reach SDIG Medawatte directly at 071-8592621 to lodge complaints related to bribery, corruption, or illegal drug activity, with the police emphasising that all reports will be treated seriously and investigated promptly.
Health Officials Sound Alarm Over Growing Misuse of Antibiotics
November 20, Colombo (LNW): Public health experts have issued a fresh warning about the careless use of antibiotics, cautioning that such behaviour is accelerating antimicrobial resistance and undermining the effectiveness of treatments that were once routine.
Speaking at a media briefing, Dr Priyantha Atapattu of the National Centre for Antimicrobial Resistance stressed that the misuse and overuse of antibiotics has been a persistent concern for clinicians.
He noted that although these medicines are designed to combat infections caused by bacteria, viruses, fungi and parasites, they should only be used when properly prescribed and carefully monitored.
Dr Atapattu emphasised that identifying the precise cause of an illness is essential before beginning any course of treatment. When people self-medicate—often using the wrong drug, taking incorrect doses or resorting to antibiotics for conditions that do not require them—they inadvertently contribute to a wider, more dangerous trend.
This growing resistance, known as antimicrobial resistance (AMR), develops when disease-causing organisms adapt and become impervious to standard medicines. As a result, infections that were once easily treatable may become prolonged, complicated or even fatal. Dr Atapattu pointed out that although hundreds of antibiotics have been developed since the discovery of penicillin in 1928, fewer than 200 remain reliably effective today.
He added that AMR was linked to an estimated 1.27 million deaths worldwide in 2019, with some analyses suggesting the toll could be closer to 5 million. Without swift and sustained action, annual global fatalities could reach 10 million by the middle of the century.
The consequences of unnecessary antibiotic use, he warned, include failed treatments, long-term health complications, disability and death. In light of the growing threat, health authorities have urged the public not to demand antibiotics unless prescribed by a qualified medical professional, while pharmacists have been reminded of their responsibility to dispense such medicines only upon valid prescriptions.
Sapugaskanda Refinery Expansion Set to Commence Under BOT Model
November 20, Colombo (LNW): The long-awaited development of the Sapugaskanda oil refinery is expected to get underway shortly, Minister of Power and Energy Kumara Jayakody informed Parliament today (20).
The project is to be carried out under a build–operate–transfer arrangement, marking a significant step in the government’s efforts to modernise the country’s energy infrastructure.
According to the Minister, the process of selecting the project’s controlling entity is now in its final stages, with officials reviewing the remaining proposals before a decision is made.
He added that approximately Rs. 171 million has already been allocated for the feasibility assessment, which examined technical requirements, financial viability and long-term operational considerations.
Jayakody noted that once operational, the upgraded refinery is expected to enhance domestic fuel-processing capacity, reduce reliance on imports and pave the way for greater energy security.
Sri Lanka and EU Delegation Hold Talks on Governance Reforms and Future Cooperation
November 20, Colombo (LNW): Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra has engaged in wide-ranging discussions with Șerban-Dimitrie Sturdza, Chair of the European Parliament’s Delegation for Relations with the Countries of South Asia (DSAS), along with several accompanying members of the delegation.
According to the Ministry of Foreign Affairs, the meeting placed particular emphasis on Sri Lanka’s ongoing reforms aimed at widening political inclusion and ensuring stronger representation for minority communities. Hemachandra outlined recent steps taken under the government’s broader reform framework, emphasising that Colombo intends to sustain progress on matters of participatory governance and institutional renewal.
The Deputy Minister also reiterated Sri Lanka’s commitment to upholding key European Union standards, particularly in the fields of democratic practice, human rights protections, public transparency and accountability, and the continued strengthening of the rule of law. He noted that these priorities are integral not only to Sri Lanka’s international partnerships but also to its long-term national development goals.
Delegation members, for their part, conveyed their willingness to work more closely with Sri Lankan authorities in the coming months. Both sides signalled a shared interest in enhancing cooperation across political, economic and social fronts, with an eye to supporting the country’s pursuit of national cohesion, stability and sustainable growth.
Expert Calls for Rethink on Tobacco Control as New Figures Show Potential for Massive Health Savings
November 20, Colombo (LNW): Sri Lanka could stand to save an estimated GBP 8.2 billion over the next three decades if it embraces a structured Tobacco Harm Reduction (THR) strategy, according to a specialist in tobacco regulation.
At current exchange rates, this projected saving amounts to roughly Rs. 3.32 trillion—funds that could significantly ease the burden on the national health system.
Dr Rohan Sequeira, Founder-Director of the Society of Medically Harm Reduced Alternatives (SOMHRA) and a well-known cardio-endocrine consultant, noted that the country currently spends around GBP 400 million each year treating illnesses linked to tobacco use.
With about 22 per cent of adults still using tobacco in some form, he warned that Sri Lanka continues to face a pressing public health challenge.
Speaking at South Asia’s inaugural “Quit Like Sweden” Anti-Tobacco Roundtable held in Colombo, Dr Sequeira highlighted Sweden’s notable success in reducing smoking-related disease through harm-reduction policies rather than outright prohibition.
The QLS initiative, which supported the event, encourages governments to adopt practical, evidence-led approaches rather than relying solely on traditional bans.
Dr Sequeira also drew attention to Sri Lanka’s high incidence of oral cancers—among the highest in South Asia—with roughly 3,000 new cases recorded each year, particularly among men. Without effective intervention, he cautioned that these numbers could double by 2044.
He argued that blanket bans on tobacco are rarely effective, often driving consumers towards illicit markets where products are unregulated and potentially more unsafe. Instead, he urged policymakers to expand regulated access to reduced-risk alternatives for adult users, while simultaneously tightening controls to ensure minors cannot obtain e-cigarettes or other nicotine devices, which are currently easy to purchase both online and in shops.
In outlining a way forward, Dr Sequeira proposed several measures, including pilot THR programmes in districts with the highest disease burden, the formation of a multi-party advisory panel on THR policy, a detailed regulatory impact assessment, and a long-term communication strategy to educate the public.
He emphasised that it is the smoke and bacterial contamination in conventional products that pose the gravest risks, not nicotine itself.
He added that Sri Lanka must design approaches suited to its own social and cultural context, as policies that prove successful overseas cannot simply be replicated without adaptation. Present tobacco use patterns in the country remain diverse, with betel quid mixed with tobacco accounting for the largest proportion at 42 per cent, followed by cigarettes (28 per cent), beedi (18 per cent), and other smokeless products (12 per cent).
Sri Lankan Envoy Strengthens Economic Links During Malmö Visit
November 20, Colombo (LNW): Sri Lanka’s Ambassador to Sweden, Kapila Fonseka, has completed a productive tour of Malmö, the bustling economic heart of the Skåne region, with the visit aimed squarely at deepening commercial ties and widening avenues for investment between the two countries.
Throughout his stay, the Ambassador held a series of discussions with municipal officials, leading business figures, and representatives from key industries, underscoring Sri Lanka’s ambition to tap into Malmö’s reputation for innovation, sustainability, and emerging technologies. The city’s energetic business landscape, he noted, offers fertile ground for new partnerships across multiple sectors.
A business forum arranged by the Sri Lanka–Sweden Business Council gathered a range of Swedish entrepreneurs and travel industry specialists. Ambassador Fonseka, alongside the Council’s Secretary General Leif Ohlson, highlighted Sri Lanka’s appeal as a year-round tourism destination and drew attention to investment prospects in ICT, advanced manufacturing, and tech-enabled services. Participants reportedly showed strong interest in potential joint ventures and collaborative initiatives.
Strengthening regional investment channels was a notable feature of the visit. Talks with Invest in Skåne’s CEO Micael Gyorel and Senior Investment Advisor Jeton Jasharaj explored plans to expand trade flows and encourage Swedish firms to explore opportunities on the island. A tour of Medeon Science Park, a key hub for life sciences innovation, opened further dialogue on research partnerships, with CEO Malin Bornschein offering insights into areas where Sweden and Sri Lanka could work more closely.
The Ambassador also exchanged views with Per Tryding, Vice President of the Chamber of Commerce and Industry of Southern Sweden, focusing on ways to reinforce long-term economic cooperation. Leif Ohlson accompanied the envoy during these engagements, helping facilitate discussions with local business networks.
A visit to Dabico FMT—an established manufacturer of passenger boarding and docking systems—added a practical dimension to the tour. CEO Prarthana Kaluarachchi expressed enthusiasm about exploring operational expansion in Sri Lanka, particularly in support of aviation and maritime infrastructure.
Ambassador Fonseka reiterated that Sri Lanka’s improving economic climate, skilled labour base, and policy stability make the country an increasingly attractive partner for Swedish enterprises. He emphasised that both nations stand to benefit from collaborative ventures grounded in innovation and sustainability.
The visit concluded on a celebratory note as the Ambassador attended the World Maritime University’s graduation ceremony in Malmö, where he met WMU President Prof. Maximo Q. Mejia Jr. and congratulated two Sri Lankan graduates on their achievements.