Colombo, November 5 – The Embassy of France in Colombo has announced that two French cable ships will be constructed in Sri Lanka, marking another milestone in bilateral cooperation and the country’s growing reputation in advanced shipbuilding.

The vessels will be built by Colombo Dockyard PLC, selected by Orange Marine, a French company and a global leader in submarine cable installation and maintenance. The project aims to renew and expand Orange Marine’s fleet capacity, strengthening global digital connectivity infrastructure.

This follows the successful construction of the cable ship Sophie Germain in 2023 by Colombo Dockyard, which is currently in active operation.

The Embassy noted that this renewed collaboration underscores Sri Lanka’s rising prominence in the global maritime engineering sector, while reinforcing the strategic maritime partnership between France and Sri Lanka.

Officials from both sides expressed confidence that the initiative will not only enhance technological cooperation but also create new opportunities for Sri Lanka’s shipbuilding industry in the international arena.

Colombo, November 7 – President Anura Kumara Dissanayake announced that the state administrative system has been severely weakened due to years of unfilled vacancies in the public service, emphasizing that revitalizing the public sector is a key priority of the 2026 Budget.

Presenting the Budget Proposals for 2026 in Parliament, the President revealed that a formal study conducted by a committee chaired by the Prime Minister had reviewed the country’s public service recruitment process and overall workforce management. Based on its findings, approval has been granted to recruit nearly 75,000 individualsthrough a transparent and merit-based procedure.

“These recruitments will focus on essential positions such as technical officers, law enforcement officers, and revenue officers, who are vital to maintaining the efficiency and continuity of key state services,” President Dissanayake said.

He also underscored that, going forward, all recruitments, promotions, and related administrative actions in the public sector will strictly adhere to prescribed examinations and service regulations, free from political influence — ensuring equal opportunities for all qualified candidates.

In addition to strengthening public service management, President Dissanayake announced a series of financial and welfare benefits for public servants, including:

• Restructuring of the housing and property loan scheme, increasing the maximum loan amount to Rs. 5 million.
  • Rs. 500 million will be allocated for these loans, with a 4% concessional interest rate for the first Rs. 3 million and a 2% rate for amounts between Rs. 3 million and Rs. 5 million.
• Revision of the Agrahara Insurance Scheme contribution to maintain its sustainability.
  • The minimum contribution of Rs. 125 will rise by Rs. 75.
  • Monthly contributions of Rs. 300 and Rs. 600 will be increased by Rs. 150 each.
• Increase of the interest-free festival advance for government employees from Rs. 10,000 to Rs. 15,000.
• Enhancement of the distress loan advance from Rs. 250,000 to Rs. 400,000, at an interest rate of 4.2%.

The President noted that these reforms are intended to both restore efficiency in public administration and improve the living standards of state employees, ensuring a more motivated and equitable public service.

Showers or thundershowers will occur at most parts of the island after 1.00 p.m. Fairly heavy falls above 75 mm are likely at some places in Uva, Southern, Sabaragamuwa and Central provinces.
Showers or thundershowers may occur in Western, Sabaragamuwa, Central, North-western and Southern provinces and in Ampara district in the morning too.

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

Pradeep Nilanga Dela has once again been elected as the Diyawadana Nilame of the historic Temple of the Sacred Tooth Relic in Kandy.

The appointment was made this afternoon (07) during the election held at the Kandy Buddhist Council.

He secured 195 votes, earning his third consecutive term as the Diyawadana Nilame. With this victory, he will serve another 10-year tenure in this prestigious position.

In a significant step toward advancing Sri Lanka’s energy transition, the International Finance Corporation (IFC) is poised to extend a US $ 30 million loan to support the government-backed Secure, Bearable and Sustainable Energy Project (SBSE) under the umbrella of the World Bank Group. This move follows formal approval by the country’s Cabinet of Ministers of Sri Lanka, which endorsed the loan agreement earlier in May.

According to the Cabinet spokesman, Dr. Nalinda Jayatissa, negotiations with the IFC are ongoing to finalise the exact terms. The funds will be channelled via the Ceylon Electricity Board (CEB) or its designated affiliates, functioning as sub-loans to implement the project’s core components: enhancing system reliability, improving affordability of power, and accelerating the shift to sustainable energy generation. Importantly, the agreement will adhere to recommendations of the Public Debt Management Office to safeguard debt-management standards.

In broader context, this loan dovetails with the Bank Group’s new programme unveiled in June 2025, under which some US $150 million has been committed to strengthen Sri Lanka’s clean energy mix. That programme intends to add about 1 gigawatt of renewable (solar + wind) capacity and mobilise more than US $800 million of private-sector investment.

Beyond the headline loan, the IFC has been active in Sri Lanka’s financial and climate-finance reform space. For example, earlier in 2024-25 it supported the Central Bank of Sri Lanka in developing its green-finance strategy  a move aimed at boosting bank-lending to renewable projects and SME access to finance.

Although precise nine-month figures specific to the SBSE project are not publicly available yet, the IFC’s institutional data shows that for its FY 2025 (ending June 30) total commitments rose to US $71.7 billion globally up from US $56.1 billion a year earlier.

 While these numbers cover all IFC operations worldwide—not just Sri Lanka they reflect the scale at which the IFC is operating and the potential for significant deployment of funds into the country.

For Sri Lanka, the anticipated impact of the US $ 30 million loan is multiple. First, by improving power-system reliability and reducing dependence on costly fossil-fuel imports, it can help lower electricity cost burdens on households and businesses.

Second, aligning with the country’s goal of 70 % renewables by 2030, the loan is a catalyst for private-sector entry and innovation in the energy space. Third, by adhering to debt-management frameworks, the loan contributes to restoring fiscal stability and external-funding discipline.

It is, however, crucial to recognise risks: the success of the SBSE project will depend not only on funding but on execution the pace of generation-capacity roll-out, transmission upgrades, grid integration, and regulatory reform. The loan’s value lies not only in the US $ 30 million itself, but in the credible pathway it opens for larger private investment and institutional reform.

In summary, the IFC’s forthcoming loan marks a pivotal moment for Sri Lanka’s energy sector: through targeted funding, reform-linked technical support and private-sector mobilization it offers a tangible boost to cleaner, more sustainable and affordable power. 

The coming months will be critical as the project transitions from approval into implementation and as stakeholders monitor whether the promised gains translate into measurable improvements for the Sri Lankan economy and its people.

In the first half of 2025, Ceylon Petroleum Corporation (CPC) saw its net profit drop by 17.9 % to Rs. 17 billion, down from Rs. 20.7 billion in the same period in 2024. This decline comes as global fuel prices soften and the Sri Lankan rupee strengthens, helping to shrink both turnover and costs.

According to the Finance Ministry’s Mid-Year Fiscal Position Report 2025, CPC’s turnover slid 19.3 % to Rs. 439.5 billion from Rs. 544.3 billion a year earlier. Cost of sales likewise fell 19.2 % to Rs. 377.9 billion from Rs. 467.7 billion.

The report attributes the decline largely to lower international petroleum prices and the rupee’s appreciation, which dampened import costs. Notably, the value of CPC’s petroleum imports dropped to US$ 1.04 billion in the first half of 2025 from US$ 1.23 billion in the same period last year.

While the lower import cost helped, the firm also points out that a stronger rupee reduced its rupee-denominated revenue, which offset some of the gains. Meanwhile, CPC has taken steps to reduce external liabilities: dues to the National Iranian Oil Company declined to US$ 130.96 million by end-June 2025 from US$ 191 million a year earlier, thanks in part to ongoing tea-for-oil barter arrangements.

However, CPC continues to carry a heavy debt burden. In March 2025 it was reported that the corporation remains “debt-ridden”, with outstanding liabilities in excess of US$ 3 billion driven by fuel import loans and unpaid supplier bills. The corporation has also been approved to self-finance the development of 24 oil storage tanks at China Bay, despite its financial constraints.

The competitive landscape for fuel sales in Sri Lanka is also evolving. Historically CPC held a dominant share of around 80 % of the market, but its private-sector competitor Lanka IOC PLC has consistently posted profits in recent years despite operating in the same regulated pricing environment  in contrast to CPC’s heavy accumulated losses, which were estimated at LKR 529 billion by end 2020.

 Furthermore, regulatory moves have opened the sector to further competition, raising the urgency for CPC to sharpen its efficiency and financial discipline.

This combination of declining profitability, large outstanding debt and growing competition poses a critical test for CPC. The decline in turnover and profit underscores the sensitivity of its business to currency and global fuel price swings, while its debt legacy continues to constrain strategic flexibility. On the competitive front, private sector fuel retailers are proving that profitability is possible even in this environment  prompting questions about CPC’s operational model and cost structure.

For CPC to reverse its downturn and maintain market leadership, it will need to address three linked priorities: stabilising and reducing its debt burden, improving operational and treasury efficiency, and responding proactively to increased competition. The performance of CPC in the remainder of 2025 will thus be watched closely by stakeholders, especially given its key role in national energy security and the implications for public-sector finances.