March 02, Colombo (LNW): Sri Lanka has received a crucial boost in its efforts to stabilise and reform its economy with the completion of the Third Review under the 48-month Extended Fund Facility (EFF) from the International Monetary Fund (IMF).

The approval, granted on February 28, allows Sri Lanka immediate access to approximately US$334 million, which will support the country’s ongoing economic policies and reforms.

However, what stands out in this latest agreement is that the IMF has refrained from imposing any new financial burdens on the Sri Lankan Treasury.

Deputy Minister Professor Anil Jayantha clarified yesterday (01) that the IMF’s primary focus was to prevent unnecessary costs being borne by the Treasury, particularly in relation to State-Owned Enterprises (SOEs).

“The IMF’s key concern is ensuring that the Treasury does not shoulder avoidable costs associated with SOEs,” Prof. Jayantha remarked. He highlighted the past challenges faced by the country, particularly in cases like SriLankan Airlines, where mismanagement and corruption led to significant financial strain.

“We’ve learned hard lessons from issues like corruption and unsustainable borrowing, especially with SriLankan Airlines,” he added.

In line with this, the IMF has encouraged a more disciplined and structured approach to restructuring SOEs. Prof. Jayantha emphasised that the IMF is not pushing for the privatisation of these entities but rather for their efficient management and reform to prevent them from becoming further financial drains on the national budget.

A new committee has been set up to oversee these state-owned bodies, with the aim of making them more self-sufficient whilst maintaining their service quality and affordability.

“The goal is to make sure that these enterprises continue to provide essential services at reasonable prices whilst avoiding monopolies or market failures,” he explained, underlining the importance of maintaining fair competition and quality within these sectors.

Looking ahead, Prof. Jayantha noted that Sri Lanka’s government is committed to meeting the benchmarks set by the IMF. Whilst the fourth review is expected to begin in April, he assured that the government remains open to making adjustments to the targets if required.

“We are prepared to discuss any necessary changes to the benchmarks, depending on the evolving circumstances,” he said.

In response to ongoing concerns about corruption, Prof. Jayantha revealed that progress is being made on the formulation of anti-corruption legislation, with necessary drafts currently being prepared.

The government remains focused on building a more transparent and accountable system to address issues that have plagued the country’s governance in recent years.

This latest step with the IMF signals a cautious but optimistic path forward for Sri Lanka as it works to stabilise its economy without imposing undue burdens on the state’s finances.

The government’s focus on reforming SOEs and tackling corruption will be key areas of progress as the country continues to navigate its economic challenges.

By: Staff Writer

March 01, Colombo (LNW): A shocking revelation by the Committee on Public Enterprises (COPE) has raised serious concerns about the Sri Lanka Foreign Employment Bureau (SLBFE), over its role in potentially enabling modern-day human trafficking by sending workers abroad without legally binding employment contracts.

The Committee further uncovered that senior officials at the Bureau—including the former Chairman, Acting Chairman Saminda Jayasekara and former Deputy General Manager – Employment Approval P.P. Weerasekara (who is the current Acting Additional General Manager – Local Affairs) had issued these controversial circulars without Board approval.

It disclosed that these circulars bypassed the Act to enable the sending of domestic workers — mostly women, overseas under ‘visit visas’ without any formal employment contracts.

The Committee opined the Bureau’s actions suggest that the State-owned enterprise has facilitated human trafficking as individuals were sent abroad under ‘visit visas’ without legal protections of formal employment agreements.

In a startling admission, the Bureau’s former Deputy General Manager – Employment Approval, defended the practice, stating that they only extended the existing circular. “There is no big deal about the visa category. We only care about the job,” he said.

Weerasekara further revealed that the Bureau also send workers to South Korea under visit visas, asserting that they relied on a 45-day agreement between the respective foreign agency and the employee rather than securing long-term, legally binding employment contracts.

COPE’s findings indicate that the Bureau had sent a total of 6,290 workers abroad through this questionable method. However, only 4,300 of these individuals were registered in the destination countries’ mission databases, leaving 1,990 unaccounted for.

Of even greater concern, the committee revealed that 742 individuals have gone missing after being sent abroad. A total of 365 individuals returned within 45 days, raising questions about job security and working conditions. It was revealed that 880 individuals remained abroad beyond the 45-day period, potentially stranded without legal employment protections.

Several Members of Parliament (MPs) present at the COPE alleged that many of the women sent abroad through this process were effectively being “sold” into exploitative conditions due to the lack of proper oversight.

The COPE suggested that rather than fulfilling its regulatory role, the Bureau had allegedly acted in the interests of foreign employment agencies —allowing recruitment companies to operate with minimal oversight instead of holding them accountable to legal standards.

The revelations have sparked outrage, with lawmakers pointing to data submitted by the SLBFE where some of the workers approved and sent by the Bureau were underage.

The committee members also pointed out that a total of 1,925 complaints were received by the Bureau with no action taken by the SLBFE. When asked about the Minister in charge at the time, Bureau officials stated that it was Manusha Nanayakkara.

By: Staff Writer

March 01, Colombo (LNW): The new government has launched a five year energy development plan  on par with  the Sri Lanka Renewable Energy Program with the assistance of  World Bank and Global Environmental Facility (GEF) assisted  green energy program.,

The ongoing Renewable Energy for Rural Economic Development (RERED) project is promoting the provision by the private sector, NGOs and cooperatives of grid-connected and off-grid energy services using environmentally sustainable renewable energy technologies.

 The program supports the provision of electricity and socioeconomic improvements in rural areas through:(i) solar PV, hydro, wind and biomass renewable energy technologies; (ii) credit financing through private participating credit institutions; (iii) grant mechanisms for off-grid systems,

It provides technical assistance for income generation and social service delivery improvements based on villages’ access to electricity;

It also included technical assistance to promote energy efficiency, development of carbon trading mechanisms and integration of renewables into government policy, provincial council development strategies and sector reform initiatives.

The launch of the five-year renewable energy development plan, ” Green Energy Acceleration Plan 2025-2030″, presented by the Ministry of Energy, was held on February 27 at the Cinnamon Life Hotel in Colombo under the patronage of Prime Minister Dr. Harini Amarasuriya.

The plan outlines key strategies for identifying and implementing renewable energy methods and digital innovations, ensuring their efficient and environmentally sustainable use. It also highlights the economic benefits of renewable energy and its potential to strengthen the country’s financial stability.

Addressing the gathering, Prime Minister Dr. Harini Amarasuriya stated: “It is a pleasure to address you on this significant occasion of launching the Action Plan on Renewable Energy Management.

We are not just here to launch this project; we are here to transform our country into an energy powerhouse for the future. The Ceylon Electricity Board and the Sri Lanka Sustainable Energy Authority have taken the lead in steering Sri Lanka towards sustainable energy solutions.

She said that she is pleased that the Ministry of Energy has introduced a valuable five-year action plan, the Green Energy Acceleration Plan 2025-2030.

This initiative will promote sustainable energy consumption, identify renewable energy sources, and provide a comprehensive understanding of energy conservation and storage methods.

The primary objective of this plan is to reduce electricity demand and lower the initial cost of electricity in Sri Lanka by identifying and promoting the use of renewable energy sources.

The goal is to expand renewable energy production over the next five years and provide affordable electricity to all Sri Lankans.

The aim is to reform our energy acts in three key areas. First, we will ensure the provision of affordable and reliable energy through renewable sources such as solar, wind, and hydropower while minimizing carbon emissions.

Second, we will focus on educating the public on the significance of renewable energy and digital technologies and their role in accessing modern and reliable energy. Third, we will introduce advanced energy conversion methods to modernize the energy sector, aligning Sri Lanka with global advancements in the field.

This is not just a plan; it is a roadmap for the next five years. It encompasses various aspects, including the identification and development of energy sources, public awareness initiatives, implementation timelines, allocated funding, and necessary legal frameworks.

To ensure the success of this project, it is essential to leverage both local and international partnerships. Let us work together to meet the energy needs of all Sri Lankans using renewable energy solutions.

By: Staff Writer

March 01, Colombo (LNW): Sri Lanka’s construction sector further expanded to 52.9 in January 2025, from 51.4 in December 2024, according to a Purchasing Managers Index compiled by the central bank.

“Most survey respondents mentioned that prevailing business conditions, particularly stable price levels and favourable weather, had expedited the completion of ongoing construction projects,” the statement said.

“It was further highlighted that ensuring a steady pipeline of new projects is essential for the firms to maintain the continued progress.”New Orders rose from the neutral threshold of 50.0 in December to 52.9 in January.

“Many survey respondents highlighted that, alongside foreign-funded construction projects, there has been a continued increase in tendering opportunities from private investors.”Employment index contracted at a slower pace in January, down at 48.5 from 38.2 in December.

Quantity of Purchases index increased during the month, 54.4 in January from 52.9 in December, reflecting the improvement in industry operations.Suppliers’ Delivery Time remained lengthened during the month, registering 52.9 in October.

The industry expectations for the next three months indicate an improvement, according to the statement, as firms expect a gradual increase in government-funded infrastructure projects, contributing positively to the growth in construction industry.

As of early 2025, the Sri Lankan construction sector is showing signs of revival, with reports indicating a gradual expansion and recovery, particularly driven by increased housing demand, growing foreign investment in tourism projects, and opportunities in real estate and mega projects; however, challenges still remain regarding outstanding payments and the need for large-scale projects to sustain growth.

Key points about the Sri Lankan construction sector revival in 2025:

Positive PMI trends:

The Sri Lanka Purchasing Managers Index (PMI) for the construction sector is recording values above 50, signifying expansion and a positive trajectory.

Housing demand:

High demand for housing is a major driver of the construction sector’s recovery.

Tourism-related investments:

Increased foreign investment in tourism projects is boosting construction activity, particularly for hotels and related infrastructure.

Government initiatives:

The government is taking steps to revive stalled housing projects by replacing contractors and facilitating faster project completion.

Challenges to consider:

Outstanding payments:

Delays in government payments to contractors remain a significant obstacle for the industry.

Need for large-scale projects:

While the sector is showing expansion, there is a need for more substantial construction projects to create substantial employment and drive sustained growth.

Regulatory hurdles:

Streamlining approval processes and addressing regulatory complexities could further accelerate the revival.