As Sri Lanka searches for new engines of economic growth following years of fiscal turbulence, attention is increasingly turning toward a resource hidden beneath the country’s coastal sands.

At the Mineral Sands Technical Conference 2026 held in Colombo, international specialists, government officials and investors argued that mineral sands could become one of the country’s most valuable export industries provided Sri Lanka moves beyond simple extraction and embraces technology, processing and environmental best practices.

Global demand for titanium minerals and rare earth elements has surged as nations race to secure supplies for electric vehicles, renewable energy projects, defence technologies and high-tech manufacturing. This has elevated mineral-rich countries into strategically important players in international supply chains.

Sri Lanka’s deposits contain ilmenite, rutile, zircon and monazite, minerals used in pigments, ceramics, aerospace components, electronics and clean-energy technologies. The country’s mineral endowment has long been recognised, but experts believe its economic value remains largely untapped.

Andrew Foster, Managing Director of Mineral Technologies Australia, told delegates that Sri Lanka already occupies an important position within the global mineral sands industry and is well placed to benefit from the growing international demand for strategic minerals.

However, Foster emphasised that successful mining economies are not built solely on resource availability. Technology adoption, environmental stewardship and robust institutions are equally critical.

One notable point raised during the conference was the comparatively lower environmental footprint of mineral sands extraction. Foster explained that only a small proportion of mined material contains economically valuable minerals, while the bulk is typically returned to the landscape through rehabilitation programmes. Unlike many forms of mining, mineral sands processing generally avoids extensive chemical treatment during extraction.

Nevertheless, environmental concerns remain a sensitive issue. Experts stressed that future growth must comply with increasingly stringent Environmental, Social and Governance (ESG) standards demanded by international investors and customers.

Australian High Commissioner Matthew Duckworth highlighted another reality confronting Sri Lanka’s mineral ambitions. Countries earn the highest returns not from digging minerals out of the ground but from processing them into higher-value products.

His comments echoed a broader consensus among conference participants that Sri Lanka should focus on establishing mineral processing facilities, technology partnerships and specialised industrial clusters capable of generating skilled jobs and retaining more export earnings within the country.

The Government appears to be embracing that direction. Minister Sunil Handunneththi outlined plans to strengthen exploration, mining, processing and value addition while improving transparency and sustainability.

Nevertheless turning ambition into reality will require substantial foreign investment, modern infrastructure, regulatory certainty and technical expertise.

The conference concluded with a clear message: Sri Lanka possesses the resources required to become a significant player in the critical minerals era. Whether those resources translate into sustained economic growth will depend on how quickly the nation can transform geological potential into industrial capability.

Sri Lanka’s newly gazetted Customs fee framework, scheduled to take effect on 1 July 2026, is drawing growing concern from importers, exporters, freight forwarders, and logistics operators who fear the reforms could significantly increase the cost of doing business at a time when many companies remain under financial pressure.

While the Government has presented the regulations as a modernisation initiative, several sectors argue that the revised charges represent a substantial increase in operational costs that may ultimately be passed on to businesses and consumers.

One of the most debated aspects is the rise in export examination fees. Under the new framework, Full Container Load (FCL) export consignments will be charged Rs. 600 for the first container, compared to Rs. 550 previously. Charges for Less than Container Load (LCL) consignments have increased from Rs. 300 to Rs. 400 per Customs Declaration, while examination fees for bulk cargo exports have surged from Rs. 20 to Rs. 100 per metric ton.

Exporters warn that although individual increases may appear modest, cumulative costs across multiple shipments could erode competitiveness, particularly for low-margin industries such as agriculture, fisheries, and small-scale manufacturing.

The introduction of new service charges for cargo removal and declaration processing has also raised concerns. Importers will face charges of Rs. 3,200 for a single container, Rs. 2,000 for LCL consignments up to 15 metric tons, and Rs. 2,400 for motor vehicle declarations. Industry representatives argue that these additional expenses arrive at a time when businesses are already grappling with high financing, transport, and energy costs.

The sharp increase in ICT-related fees has generated particular criticism. The monthly fee for BOI users has doubled from Rs. 8,000 to Rs. 16,000 per user. Although Customs authorities argue that digital improvements require sustainable funding, businesses question whether service enhancements will materialise quickly enough to justify the increase.

Logistics providers have also expressed concern over new licensing and compliance requirements. Inland Clearance Depots will face annual licence fees of Rs. 1 million, while new applications require processing fees of Rs. 200,000. Industry analysts warn that smaller operators may struggle to absorb these costs, potentially reducing competition within the sector.

Shipping agents are similarly affected by requirements to maintain a Rs. 1 million bond and a minimum deposit of Rs. 250,000 when facilitating vessel operations before reporting formalities are completed. Critics argue that tying up working capital in deposits could create cash-flow challenges, particularly for smaller agencies.

Additional penalties of up to Rs. 100,000 for reporting violations have further heightened concerns regarding compliance risks. Stakeholders fear that increased regulatory complexity may expose businesses to financial penalties even for minor administrative errors.

While the Government expects the reforms to strengthen Customs operations and revenue collection, many businesses remain cautious. Their primary concern is whether increased fees will be accompanied by measurable improvements in efficiency, faster clearance times, and better digital services. Without such gains, the new framework risks being viewed not as a trade facilitation measure, but as an additional financial burden on Sri Lanka’s import and export sector.

A new direct air service between Ahmedabad, India, and Colombo will commence on Friday, reducing travel time between the two cities from approximately eight hours to just three hours.

Operated by FitsAir, the route will connect Ahmedabad in Gujarat with Colombo three times a week, becoming the first direct air link between the two destinations after several previous attempts failed to materialize.

The initiative has been facilitated by Cinnamon Hotels and Walkers Tours as part of efforts to strengthen tourism, business, and travel connections between India and Sri Lanka.

Tourism industry stakeholders note that India continues to be Sri Lanka’s largest source market for visitors. Speaking to the media, Cinnamon Hotels & Resorts representative Kamal Munasinghe said around 500,000 Indian tourists visited Sri Lanka last year, with further growth expected in 2026.

He described Ahmedabad as a largely untapped market for Sri Lankan tourism despite the existence of direct flight connections from several other Indian cities.

According to tourism officials, Gujarat’s strong travel trade network and growing demand for international travel make Ahmedabad an important target market for Sri Lanka’s tourism promotion efforts.

Sri Lanka cricket legend Sanath Jayasuriya is expected to attend the inaugural flight launch, underscoring the significance of the new route in enhancing people-to-people ties and tourism cooperation between the two countries.

Industry representatives believe the direct service will encourage greater tourist arrivals, business travel, and cultural exchanges while improving connectivity between western India and Sri Lanka.

Former Member of Parliament Patali Champika Ranawaka has accused the Government of misleading the public over fuel pricing, challenging claims that fuel prices cannot be reduced because existing fuel stocks were purchased at higher prices.

Speaking to the media, Ranawaka argued that the same reasoning was not applied when fuel prices were increased following the escalation of tensions in the Middle East.

“Fuel stocks purchased in February were bought at the previous prices. However, fuel prices were increased immediately after the conflict began. The increase was imposed on fuel that had already been imported at lower prices,” he said.

Ranawaka alleged that the price hike generated more than Rs. 600 crore in additional revenue and questioned why reductions are not being implemented now that global oil prices have reportedly fallen.

He claimed that international oil prices have returned to levels seen before the conflict and stated that fuel could currently be imported at significantly lower costs.

“I can responsibly tell the public that petrol can now be imported at around Rs. 225 per litre and diesel at around Rs. 240 per litre,” he said.

The former minister also urged the Government, the Central Bank of Sri Lanka, and relevant authorities to publicly disclose details of the fuel pricing formula, including import costs, retail prices, and tax components, similar to the disclosures made in 2023 and 2024.

In addition, Ranawaka raised concerns over recent fuel procurement practices, alleging that diesel purchases from companies including Trafigura and Aditya Birla had resulted in excessive costs. He claimed that complaints had already been submitted regarding the transactions and called for a comprehensive investigation.

“These costs are now being passed on to the public. In addition to the coal procurement controversy, there has also been a diesel procurement fraud,” he alleged.

The Government has not yet responded to the allegations.

Minister of Health and Mass Media Dr. Nalinda Jayatissa has cautioned that Sri Lanka’s healthcare system could face significant strain if the current rise in dengue cases continues unchecked.

Speaking at the Beruwala Divisional Coordination Committee meeting, the Minister emphasized that preventing mosquito breeding remains the most effective short-term measure to curb the spread of dengue and reduce the growing burden on hospitals.

Dr. Jayatissa stressed that both the public and institutions have a responsibility to maintain clean surroundings, including homes, government offices, workplaces, and public spaces, to eliminate potential mosquito breeding sites.

He warned that a further increase in dengue infections could place severe pressure on healthcare facilities across the country.

“No matter what we do in the long term, the only short-term solution to controlling the increase in dengue patients is to destroy mosquito breeding grounds. All we have to do is keep our surroundings clean,” the Minister said.

He further noted that if dengue cases continue to rise beyond current levels, hospitals may struggle to manage the influx of patients.

“If more patients start being reported than this, our hospital system will not be able to handle it. When a problem like this continues, patient care could collapse. However, this situation can still be controlled,” he added.

Health authorities have repeatedly urged the public to take preventive measures, particularly during periods of increased rainfall, by removing stagnant water and maintaining clean environments to reduce the risk of dengue transmission.

The United States has officially ended its naval blockade of Iran after the two countries signed an agreement aimed at ending the recent conflict in the Middle East.

US Central Command announced that the blockade had been lifted in accordance with President Donald Trump’s directive, although some US naval assets will remain deployed in the region.

Iran’s Supreme Leader Mojtaba Khamenei later confirmed that he had approved the agreement despite holding reservations about certain aspects of the deal. He said his decision was based on assurances from President Masoud Pezeshkian that Iran’s national interests would be protected.

Khamenei accused the United States of using significant pressure to secure the agreement but stressed that future negotiations with Washington would not signify acceptance of US positions.

The agreement includes 14 key provisions, among them the reopening of the Strait of Hormuz, commitments regarding Iran’s nuclear programme, and the establishment of a proposed US$300 billion reconstruction and economic development fund for Iran. The deal also sets a 60-day timeframe for negotiating a comprehensive settlement, with the possibility of extension by mutual consent.

Although a formal signing ceremony had been planned in Switzerland, mediators confirmed that the agreement was finalized remotely. However, US and Iranian representatives are still expected to meet in Switzerland for follow-up technical discussions.

US Vice President JD Vance said the agreement has already taken effect and confirmed that further negotiations would focus on implementation details. He added that Iran would not receive financial benefits or sanctions relief unless it complies with its obligations under the agreement.

The deal has sparked political debate in the United States, with some Republican lawmakers criticizing the arrangement. Senator Bill Cassidy described it as a major foreign policy mistake, arguing that Iran’s nuclear ambitions had not been adequately addressed.

Vance rejected those criticisms, stating that the agreement requires Iran to eliminate its stockpile of enriched uranium and cease support for regional proxy groups.

The Vice President also criticized members of the Israeli government who opposed the deal, arguing that a negotiated settlement would contribute to regional stability and benefit Israel’s long-term security.

Meanwhile, tensions remain in parts of the region. Despite the agreement, Israel and the Iran-backed Hezbollah movement have continued exchanging strikes, with reports of casualties in Lebanon. Israel maintains that its operations against Hezbollah are separate from the conflict involving Iran, while Hezbollah has publicly rejected the terms of the US-Iran agreement.

The agreement marks the beginning of a new diplomatic phase between Washington and Tehran, with further negotiations expected in the coming weeks.

The Government of Sri Lanka has introduced new regulations aimed at strengthening the monitoring and oversight of foreign exchange remittances related to import transactions, with the measures coming into effect from today (19).

The regulations were issued through an Extraordinary Gazette by the Ministry of Finance, Planning and Economic Development under the Imports and Exports (Control) Act. The new provisions, promulgated by Finance Minister Anura Kumara Dissanayake, amend the Special Import License and Payment Regulations of 2011.

According to the Government, the revised framework is intended to improve transparency in import-related foreign exchange payments and enhance coordination between commercial banks and Sri Lanka Customs.

Under the new rules, all commercial banks are required to assign a unique identification number to every import-related remittance transaction. Banks must also immediately provide Sri Lanka Customs with comprehensive details of each transaction, including the importer’s Taxpayer Identification Number (TIN), addresses of the importer and beneficiary, beneficiary account details, bank and branch codes, currency and payment amount, payment and delivery terms, remittance date, proforma invoice number, and a description of the imported goods.

A key provision of the regulations is the introduction of a mandatory registration requirement for importers seeking to make advance payments for imported goods. Importers must first register with Sri Lanka Customs as eligible importers before such payments can be processed.

Commercial banks are prohibited from facilitating advance payments unless the importer has completed the required registration with Customs.

Authorities say the new measures are designed to strengthen oversight of import transactions, prevent the misuse of foreign exchange, and improve regulatory compliance in cross-border trade.

The Controller General of Imports and Exports is expected to issue operational guidelines to the Director General of Customs, commercial banks, and other relevant institutions to facilitate the implementation of the new regulations.

Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts. 

Showers or thundershowers may occur at several places in Uva province and in Polonnaruwa, Mullaitivu, Ampara and Batticaloa districts after 2.00 p.m.

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