A high-level discussion on the progress of Sri Lanka’s Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF) took place yesterday (06) at the Presidential Secretariat, led by President Anura Kumara Dissanayake and an IMF delegation.
According to the President’s Media Division (PMD), the government has already reached a staff-level agreement with the IMF on the third review of the USD 3 billion extended arrangement. The review details are expected to be presented to the IMF Board of Directors by the end of this month.
The discussions focused on the implementation progress and the government’s commitment to continuing the program. Once the IMF Executive Board grants approval, Sri Lanka is set to receive the fourth tranche of the extended loan, amounting to USD 333 million.
The meeting was attended by IMF Executive Director Dr. Krishnamurthy Subramanian, Alternate Executive Director Dr. P. K. G. Harischandra, Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Finance Mahinda Siriwadana, and Central Bank Governor Dr. Nandalal Weerasinghe.
Prime Minister Dr. Harini Amarasuriya informed Parliament yesterday (05) that the ongoing coconut shortage has resulted from the lack of a comprehensive government policy on coconut cultivation.
She stated that the current administration is developing a structured policy to enhance coconut cultivation and has already initiated several short-term programs to address the issue. Additionally, she confirmed that the government has allocated increased funds in this year’s budget to support coconut cultivation.
The Prime Minister highlighted that institutions under the Ministry of Plantations and Community Infrastructure are actively working to boost coconut production. Measures include testing for high-yield coconut varieties, identifying effective agricultural practices, providing technical guidance to control pests and diseases, and proposing policies to strengthen the coconut sector. These efforts aim to prevent future shortages and ensure a stable supply of coconuts.
The Supreme Court has scheduled March 19 for the support hearing of a Fundamental Rights petition filed by former President Mahinda Rajapaksa, contesting the government’s decision to reduce his security detail.
A three-judge bench, comprising Justices Preethi Padman Surasena, Janak de Silva, and Sampath Abayakoon, fixed the date following a request by Additional Solicitor General Varunika Hettige, who appeared on behalf of the Attorney General. She sought additional time to obtain instructions from the respondents and file objections.
The petition names Prime Minister Dr. Harini Amarasuriya, the Cabinet of Ministers, and several others as respondents. Rajapaksa argues that the government arbitrarily reduced his security detail to 60 officers without conducting a proper security assessment. He maintains that, as the leader who ended the three-decade-long war against the LTTE, he continues to face terrorist threats.
Through the petition, Rajapaksa seeks a declaration that his Fundamental Rights were violated by the government’s decision. President’s Counsel Ali Sabry represented the former President in the case.
The inaugural Catalysing Climate-Smart Agriculture: Public-Private-People Forum was recently held in Colombo, bringing together key stakeholders from the private sector, government, civil society, and international development partners. The forum aimed to address pressing challenges in Sri Lanka’s agriculture sector by promoting climate-smart solutions.
Jointly organized by the Ministry of Environment and the Food and Agriculture Organization of the United Nations (FAO), the event served as a strategic platform for dialogue and collaboration. Discussions focused on policy, regulatory, and fiscal reforms, alongside digital innovations, to enhance resilience, reduce emissions, and support national climate goals.
Collective Action for Sustainable Agriculture
Dr. R.D.S. Jayatunga, Additional Secretary of the Ministry of Environment, underscored the forum’s importance, stating, “This platform demonstrates the power of collective action in tackling one of the most critical challenges of our time. By uniting expertise and resources from the public, private, and community sectors, we can develop innovative solutions to strengthen agricultural resilience and secure sustainable livelihoods for millions of Sri Lankans.”
Assistant FAO Representative (Programme) Nalin Munasinghe echoed this sentiment, highlighting the significance of partnerships. “Sri Lanka’s agriculture sector stands at a crossroads. Through collaborative initiatives like this, we can foster climate-resilient growth that protects livelihoods and ensures long-term food security.”
Key Challenges and Solutions
The forum examined the significant impact of climate change on agriculture, including erratic rainfall, prolonged droughts, rising temperatures, and pest outbreaks. Stakeholders validated findings from a comprehensive Barriers Assessment and explored actionable solutions to boost private sector investment.
Proposed measures included policy reforms, financial incentives, and improved coordination mechanisms to align investments with global financing opportunities and local needs.
A key outcome of the forum was the validation of an actionable roadmap aimed at:
Removing barriers to private sector investment in climate-smart agriculture
Strengthening collaboration between public, private, and community sectors
Leveraging international climate financing and digital innovations to scale best practices
The roadmap also recommended establishing a Private Sector Working Group to sustain momentum and ensure continued engagement among stakeholders.
Towards a Climate-Resilient Future
The forum featured expert insights on global best practices, including strategies from the Climate-Smart Agriculture Investment Plan. Representatives from academia, civil society, and the financial sector contributed their perspectives, ensuring an inclusive approach to solution development.
The outcomes of this initiative will inform future efforts to strengthen Sri Lanka’s agriculture sector, with a focus on sustainability, resilience, and meeting national climate commitments.
The Sri Lankan Government, under the leadership of President Anura Kumara Dissanayake, will launch three new digital facilities today (7) at the Presidential Secretariat, including the GOVPAY system, aimed at reducing costs and processing time for public services.
Key Highlights of the Initiative:
GOVPAY System – A centralized online payment platform for accessing government services digitally, initially covering 16 government institutions.
EBMD Facility – A new service allowing Sri Lankans abroad to obtain birth, death, and marriage certificatesthrough their respective embassies, integrated with the Registrar General’s Department to reduce delays.
Digital Expansion in Public Services – The President’s Fund services will now be accessible at 341 Divisional Secretariats nationwide, with trained officers and the required technology in place.
Government’s Digitalization Drive
Minimizing cash usage and transitioning towards a cashless economy.
Enhancing digital infrastructure for improved public service efficiency.
Empowering SMEs, as over 400,000 small and medium-sized enterprises are already using QR-based transactions.
Officials, including Digital Economy Deputy Minister Eranga Weerarathna, Presidential Fund Secretary Roshan Gamage, Foreign Affairs Ministry Additional Secretary M.K. Pathmanathan, and Lanka Pay CEO Channa De Silva, emphasized that further digital enhancements will soon be introduced to expand and expedite public service accessibility.
Mainly fair weather will prevail over most parts of the island.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Uva and North-central provinces and in Galle, Matara and Kurunegala districts during the morning.
February 06, Colombo (LNW): Sri Lanka’s digital economy stands at a crucial turning point, demonstrating strong growth potential while facing challenges in infrastructure, policy frameworks, and digital literacy. With increased internet accessibility, expanding e-commerce platforms, and advancements in fintech, the nation is steadily advancing towards a digital transformation.
Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy, stated that Sri Lanka could generate US$ 5 billion annually from digital exports by 2030. He made this statement during the launch of the Sri Lanka Digital Public Infrastructure Summit on February 5th.
To accelerate digital transformation, Sri Lanka must prioritize strengthening its ICT infrastructure, fostering innovation, and implementing progressive regulations.
Investment in emerging technologies such as artificial intelligence (AI), big data, and blockchain will be key to positioning the country as a leader in digital solutions.
Additionally, upskilling the workforce and promoting STEM education are essential for maintaining a sustainable talent pipeline.
A strategic approach involving collaboration between the government, private sector, and international partners can help build a robust digital economy.
By addressing infrastructure gaps and leveraging technological advancements, Sri Lanka can create a more inclusive, efficient, and globally competitive digital landscape, official sources revealed.
“In an economy valued at US$ 80-90 billion, achieving US$ 5 billion in digital exports represents a substantial growth opportunity,” Wijayasuriya said.
He further noted that embracing digitization fully could lead to a 1-2% annual increase in the compound annual growth rate (CAGR), boosting Sri Lanka’s baseline GDP growth of 2-3%. If digital exports reach the projected target, this additional GDP growth could potentially double.
Past government initiatives, including the Digital Economy Strategy and the expansion of the IT-BPM sector, aimed to position Sri Lanka as a regional technology hub. However, challenges such as insufficient broadband coverage, outdated cyber regulations, and workforce skill gaps continue to hinder rapid digital progress.
“As digital adoption deepens across industries, economic growth could see an uplift of one to two CAGR points,” Wijayasuriya added. “For an economy with a business-as-usual growth rate of 3-4%, or even starting from a lower base, digitization could contribute an additional two to three percentage points to GDP growth.”
Wijayasuriya also stressed the need to expand the digital workforce beyond the current target of 200,000 professionals.
“Growing the digital economy to around 12% of GDP is achievable, but we should aim even higher—closer to 20%,” he said, emphasizing that increasing the digital workforce to 20% could potentially generate US$ 15 billion in annual digital export revenue.
He further highlighted the importance of reducing the cost of conducting digital business. “We can’t depend on being an island nation; in the digital sphere, competition is global. Our national competitiveness will depend on the maturity of our digital systems and readiness,” he noted.
To achieve these goals, Sri Lanka aims to move up in global rankings for digital economy maturity. Wijayasuriya emphasized the focus on improving key dimensions such as connectivity, digital transformation, innovation, cybersecurity, and trust frameworks.
February 06, Colombo (LNW): Sri Lanka’s lubricant industry has received a significant boost with the formal entry of HP Lubricants, a subsidiary of India’s Hindustan Petroleum Corporation Ltd. (HPCL).
Partnering with Sea World Lanka Ltd., this expansion not only enhances the country’s lubricant market but also fosters closer trade ties between Sri Lanka and India. The launch event, held in Colombo, marked a milestone for the industry, attended by prominent officials and industry leaders.
The grand launch was graced by Indian Deputy High Commissioner in Sri Lanka, Dr. Satyanjal Pandey, who served as the Chief Guest.
Also present were HPCL Director of Marketing Amit Garg, along with senior executives such as Lube Business Unit Executive Director Ch Srinivas and General Manager of International Sales Shankar Jagannathan. Representing Carplan Lubricants, the exclusive distributor for HP Lubricants in Sri Lanka, were Chairman Mahen Thambiah, Managing Director Andrew Perera, and their team.
Carplan Lubricants, under the Sea World Lanka franchise, is set to introduce an extensive range of high-quality lubricant products to the Sri Lankan market. The lineup includes automotive oils, industrial oils, marine oils, specialty products, and greases.
These offerings will cater to both individual consumers and the country’s automobile assembly sector, meeting the stringent requirements of Original Equipment Manufacturers (OEMs).
The automotive segment will feature a diverse selection of SLS-certified multi-grade oils, suitable for diesel, petrol, and hybrid engines, as well as motorcycles and three-wheelers. Additionally, the portfolio will include manual and automatic gear oils, brake fluids, railroad oils, electric vehicle-compatible oils, tractor oils, and greases.
A key highlight of HP Lubricants’ entry into the market is its extensive list of OEM approvals from prestigious global automobile brands, including Mercedes-Benz, Rolls-Royce, Porsche, Volvo, Volkswagen, Renault, Mack, Caterpillar, and Ashok Leyland. The company also supplies lubricants to major industry players such as JCB, Bajaj, Royal Enfield, MRF, and BOSCH.
For the industrial sector, HP Lubricants will provide a wide array of products, including rubber processing oils, hydraulic oils, industrial gear oils, compressor oils, transformer oils, turbine oils, and synthetic and food-grade oils. The marine segment will also benefit from a range of high-performance oils designed for maritime applications.
Emphasizing quality and environmental responsibility, HP Lubricants manufactures products that offer superior engine protection, fuel efficiency, and high performance under extreme conditions.
To ensure widespread availability, SeaWorld Lanka has already secured distributors in key regions, including the Western, North Western, Central, and Southern Provinces, with plans to expand further.
With this strategic partnership, HP Lubricants is poised to redefine Sri Lanka’s lubricant landscape while strengthening economic collaboration between India and Sri Lanka.
February 06, Colombo (LNW): The Colombo stock market faced a significant downturn as investor sentiment reversed sharply, leading to a major sell-off. The sharp decline comes after a strong start to the year, with January posting notable gains.
The market saw Rs. 188 billion in value wiped off, with the benchmark index losing over 500 points, as investors were on a selling spree in a U-turn of sentiments.
However, concerns over policy missteps and conflicting statements have unsettled investors, resulting in a major drop in market value.
The benchmark All Share Price Index (ASPI) plummeted by 500 points, equivalent to a 3% decline, while the S&P SL20 index dropped by 3.3%. This marks the biggest intraday loss since April 2022, when the ASPI fell by over 600 points.
The market’s overall capitalization dipped by Rs. 188 billion, bringing it below the Rs. 6 trillion threshold to close at Rs. 5.86 trillion. Trading activity saw a turnover of Rs. 6.35 billion, with 241.3 million shares changing hands.
Analysts attributed the market slump to profit-taking after January’s robust 7% gain. Additionally, uncertainty fueled by policy inconsistencies further dampened investor sentiment. The number of gainers remained low at just 16, with Ceylinco Insurance (CINS) and Cargills (CARG) among the few bright spots.
Banking stocks exerted considerable downward pressure on the ASPI, with Hatton National Bank (HNB), Commercial Bank (COMB), Melstacorp (MELS), Sampath Bank (SAMP), and National Development Bank (NDB) emerging as the top negative contributors. Despite a recovery in turnover compared to the previous session’s Rs. 3 billion, the figure remained below the monthly average of Rs. 6.8 billion.
Sector-wise, the Insurance sector led with a 22% contribution to turnover, followed by Capital Goods and Food, Beverage & Tobacco, which jointly contributed 35.3%. Foreign investors remained net sellers, recording an outflow of Rs. 344 million.
High net worth and institutional investors showed interest in Ceylinco Holdings, Teejay Lanka, and Ceylon Cold Stores, while mixed retail interest was observed in Industrial Asphalts, SMB Leasing, and Agarapatana Plantations. Retail investors were active in Browns Investments, John Keells Holdings, and Hatton National Bank.
Ceylinco Holdings emerged as the top performer in the Insurance sector, with its share price surging by Rs. 243.25 (7.85%) to Rs. 3,342.25. The Capital Goods sector, led by John Keells Holdings, contributed significantly to turnover, though the sector index declined by 3.28%. John Keells Holdings’ share price fell by Rs. 0.60 to Rs. 22.
Other key stocks included Browns Investments, Teejay Lanka, and Hatton National Bank. Browns Investments saw its share price decline by Rs. 0.40 to Rs. 8.50, Teejay Lanka dropped by Rs. 1.20 to Rs. 54.80, and Hatton National Bank shed Rs. 10.50 (3.05%) to close at Rs. 334.
With uncertainty prevailing, investors are closely monitoring market movements and policy directions to gauge the potential for recovery in the coming weeks.
February 06, Colombo (LNW): In the wake of UAE’s willingness to to invest in Sri Lanka’s energy sector President Anura Kumara Disanayaka will undertake a visit to the United Arab Emirates from 10-13 February 2025 at the invitation of President of the UAE Mohamed Bin Zayed Al Nahyan to participate in the World Government Summit 2025.
On the eve of the President’s vist Ambassador of the United Arab Emirates to Sri Lanka, Khaled Nasser AlAmeri met Sri Lanka’s Minister of Energy, Kumara Jayakody yeaterday and expressed intrest in investing energy sector in Sri Lanka.
During the visit, President Disanayaka will address the World Government Summit 2025 in Dubai and hold bilateral discussions with President Mohamed Bin Zayed Al Nahyan on a range of areas of mutual interest. He is also scheduled to meet Vice President and Prime Minister of the UAE Sheikh Mohammed bin Rashid Al Maktoum.
Further, President Disanayaka will hold bilateral meetings with Heads of State and Governments from several countries who will attend the Summit.
President Disanayaka will also engage with a number of CEOs of leading global companies in the sectors of IT, AI, Energy, Tourism, Finance, and Media to attract investments to Sri Lanka.
The visit to the United Arab Emirates will further strengthen the bilateral ties between the two countries.
A meeting has been held between the Ambassador of the United Arab Emirates to Sri Lanka, Khaled Nasser AlAmeri and Sri Lanka’s Minister of Energy, Kumara Jayakody.
During the meeting, the Ambassador stated that he had also met with President Anura Kumara Dissanayake and added that as a country that has strong friendly relations with Sri Lanka, the UAE views the recent political change in the country in a very positive manner.
The Ambassador further stated that UAE is interested in the investment opportunities in Sri Lanka, especially in the energy sector.
AlAmeri also stated that he firmly believes that President Dissanayake’s upcoming visit to the United Arab Emirates (UAE), which is scheduled to take place in the coming days, will be an excellent opportunity to raise awareness about the investment opportunities in the country and to reach various agreements.
Speaking during the meeting, Energy Minister Kumara Jayakody has said that the UAE, which is Sri Lanka’s sixth largest export market and employs a large number of Sri Lankans, is a country with strong friendship, and that all types of relations with the UAE are highly valued.
The Minister expressed confidence that investment ties, especially in the energy sector will further strengthen that friendship.
Minister Jayakody also emphasized the importance of working together for energy stability in the region and stated that he expects to reach many more agreements during his upcoming visit to the UAE with the President.
