July 14, Colombo (LNW): The Central Bank of Sri Lanka has launched a countrywide initiative aimed at educating the public on the dangers of illegal pyramid schemes.

The campaign, which begins today and runs until July 18, forms part of a broader effort to protect citizens from financial exploitation and to uphold confidence in the nation’s economic system.

Organised by the Financial Consumer Relations Department of the Central Bank, the awareness week is being held under the slogan “Pyramid is a trap – don’t get into the wrong track”.

The programme is designed to alert the public to the deceptive nature of such schemes, which often lure victims with promises of quick profits and guaranteed returns, only to collapse, leaving participants with substantial financial losses.

A central feature of the campaign is its grassroots reach. Educational sessions and outreach activities are set to take place across more than 6,000 schools and over 14,000 Grama Niladhari divisions, ensuring communities in both urban and rural areas are informed.

Target audiences include students and teachers, members of the armed forces, police officers, civil defence personnel, government workers, and the general public.

Throughout the week, the initiative will focus on key messages including the legal restrictions on pyramid operations, how these schemes function, the risks involved, and the personal stories of those who have been misled by them.

The Central Bank hopes that real-life case studies will serve as a sobering reminder of the emotional and financial toll these scams can take.

To ensure widespread awareness, a comprehensive media strategy is being rolled out. This includes print media notices, social media outreach, televised discussions, radio segments, online seminars, posters in public spaces, and community events.

These efforts aim to make the information accessible to all segments of society, regardless of age, education, or location.

The Central Bank has urged the public to actively engage with the campaign and take its messages to heart. It reiterated that safeguarding individuals from financial fraud is not only about enforcement, but also about empowerment through education.

By: A Special Correspondent

July 14, Colombo (LNW): A luxury casino slated to open within Colombo’s high-profile “City of Dreams” complex has drawn national attention—not just for its glitz and glamour, but also due to a growing political storm over its licensing and taxation.

The upcoming launch has captivated public interest for two major reasons. Firstly, international film icon and Bollywood megastar Shah Rukh Khan aka “King Khan” is expected to grace the opening ceremony, marking his first visit to Sri Lanka in two decades. His presence has sparked significant excitement, with fans and media outlets abuzz in anticipation of the event.

Secondly, and far more critically, the casino’s legitimacy has come under scrutiny following revelations about its licensing and possible preferential tax treatment. Political observers and legal experts have raised concerns about how approval was granted for the establishment—despite a prior ban introduced in 2015.

During his presidency, Maithripala Sirisena moved to halt the development of casinos under certain major investment projects, cancelling previously granted approvals to several companies, including Waterfront Properties, Lake Leisure Holdings, and Queensbury Leisure Limited.

His administration’s decision was formally documented in a cabinet paper that barred the operation of casinos at the “City of Dreams” site.

However, nearly a decade later, the green light appears to have been given once more—this time to a single entity. The questions now being raised are: who reversed the earlier decision, on what grounds, and through what mechanism was this approval reissued?

Whilst it is our strong belief that there should be no fundamental objection to regulated casino operations—especially given their potential to boost tourism and foreign exchange earnings—concerns have emerged over alleged irregularities surrounding taxation. According to multiple sources, the casino linked to this project may have received substantial tax concessions in contravention of Sri Lanka’s existing legal framework.

Under current laws, enterprises involved in gambling, alcohol, and tobacco are subject to high taxation, with corporate income tax for such sectors standing at 45 per cent. These industries are also ineligible for investment-related tax incentives. Yet, speculation is rife that the casino operator, which is backed by Hong Kong-based Melco Resorts & Entertainment Ltd., may have been granted a questionable exemption from this tax burden.

If these reports are accurate, it would raise serious questions about regulatory oversight, transparency, and the possible misuse of discretion in granting concessions outside legal provisions. Political sources suggest that legal action is being considered by various stakeholders to challenge the move and demand accountability.

Further developments are expected in the coming weeks…

By: Staff Writer

July 13, Colombo (LNW): Sri Lanka’s tourism sector has surpassed 1.2 million arrivals in 2025, marking a 15% increase year-on-year. However, industry analysts warn that current growth levels are falling short of the ambitious annual target of 3 million visitors and $5 billion in tourism revenue.

According to data released by the Sri Lanka Tourism Development Authority (SLTDA), a total of 1,216,344 tourists arrived in the country by July 8. During the first eight days of July alone, Sri Lanka welcomed 48,300 tourists. While this contributes to the growing total, it represents a slight decline compared to the same period last year, when 50,141 arrivals were recorded.

Average daily arrivals during this early July period have dropped to 6,038, compared to 6,268 in 2024. The modest dip signals a slowdown in momentum at the start of a critical summer travel season.

To meet the monthly target of 277,195 arrivals set for July, Sri Lanka must now attract 228,895 additional tourists in just 23 days—requiring an average of nearly 9,956 daily arrivals, a 65% jump from current trends. While the Kandy Esala Perahera festival is expected to provide a seasonal boost, analysts suggest it may not be enough to bridge the growing gap.

India remains the top contributor to Sri Lanka’s tourism numbers, sending 10,153 visitors during the first eight days of July and totaling 252,147 arrivals year-to-date. Russia and the United Kingdom follow closely with 112,939 and 112,762 arrivals respectively. The UK also contributed 4,860 visitors in early July. Australia (3,310), China (3,181), and France (2,335) round out the top source markets during this period.

Despite the promising year-to-date figures, experts caution that Sri Lanka must average approximately 297,000 monthly arrivals through December to meet its 3 million goal. This is significantly above the year’s best monthly performance so far—252,761 arrivals in January.

Tourism industry stakeholders are increasingly concerned about the lack of sustained global promotional efforts and the country’s overreliance on a few key markets. While Sri Lanka’s tourism recovery since the crisis has been notable, insiders stress that without immediate, strategic interventions and a coordinated global marketing push, the 2025 targets may be out of reach.

Policymakers now face growing pressure to act quickly, converting global interest into actual visits and ensuring steady tourist inflows during the crucial second half of the year.

By: Staff Writer

July 13, Colombo (LNW): A recent power purchase agreement (PPA) between the Ceylon Electricity Board (CEB) and Sahasdhanavi Limited—a fully-owned subsidiary of LTL Holdings—has ignited fierce debate, with critics warning it could result in an annual public loss of up to Rs. 73 billion.

Signed in April 2025, the PPA commits the CEB to purchasing electricity from a proposed 350MW combined-cycle power plant at a tariff of Rs. 37 per kilowatt-hour (kWh)—a rate more than twice the CEB’s benchmark cost of Rs. 16–17/kWh for similar technology. In addition, the CEB will pay a fixed annual capacity charge of Rs. 15 billion, regardless of whether the plant is fully operational.

Energy analysts and civil society organizations, including the Electricity Consumers’ Association (ECA), have slammed the deal for violating the country’s least-cost generation principle, warning that it places an undue financial burden on taxpayers and electricity consumers. With the plant expected to operate at high capacity, overpayments on energy alone are projected to exceed Rs. 50 billion annually.

ECA General Secretary Sanjeewa Dhammika has raised serious allegations of conflict of interest, pointing out that the agreement was signed during the tenure of former CEB Chairperson Dr. Tilak Siyambalapitiya, who simultaneously held the post of Chairperson at Sahasdhanavi’s parent company, LTL Holdings.

“This is a blatant violation of the Anti-Corruption Act No. 9 of 2023,” Dhammika said. “Dr. Siyambalapitiya approved a deal to purchase electricity from a company he was also heading. That’s a clear conflict of interest. He should have recused himself.”

Adding to the controversy, Dhammika questioned the actual fuel source of the plant. “Although the deal was presented as an LNG-based power project, Sri Lanka currently lacks infrastructure for LNG import or storage. It’s running on diesel, not LNG, and that could continue for at least five more years. This benefits only those profiting from diesel dependency.”

The ECA has filed a formal complaint with the Commission to Investigate Allegations of Bribery or Corruption, seeking an inquiry into the matter.

In response, Dr. Siyambalapitiya, who recently stepped down from his post at the CEB, defended the agreement, stating that the power plant is part of Sri Lanka’s Long-Term Generation Expansion Plan, endorsed by the CEB, the Public Utilities Commission of Sri Lanka (PUCSL), and the Government.

He emphasized that the procurement process began in 2022 and was conducted through a competitive bidding process managed by a Cabinet-appointed committee. “The contract was awarded in 2023 after thorough scrutiny and approvals from the Attorney General’s Department, the PUCSL, and other regulatory agencies,” he said.

On the conflict of interest allegations, Dr. Siyambalapitiya clarified, “The CEB Chairperson also serves ex officio as the Chairperson of LTL Holdings. This is publicly known and disclosed to all relevant authorities. The procurement and signing processes are handled within the framework of governmental procedure, with full transparency and legal compliance.”

He added that the 350MW combined-cycle plant is a critical infrastructure project aimed at ensuring energy reliability, especially during low solar and wind output. The plant, which uses regasified liquefied natural gas (R-LNG), is scheduled to operate on open-cycle mode within 30 months, and switch to combined-cycle mode 12 months later.

According to the CEB, the project will eventually reduce dependency on diesel and cut fuel costs by about 50% by 2028, when similar plants are expected to fully transition to R-LNG, improving both cost-efficiency and environmental impact.

Despite the CEB’s assurances, concerns about financial prudence and governance remain, with watchdogs calling for an independent review of the agreement. The issue continues to stir debate over energy policy, transparency, and the need for reform in Sri Lanka’s state-owned utilities.

By: Staff Writer

July 13, Colombo (LNW): Sri Lanka’s palm oil based industry, once a promising foreign exchange earner under the Indo-Sri Lanka Free Trade Agreement (ISFTA), continues to suffer heavy losses due to lingering policy confusion and bureaucratic red tape stemming from the crude palm oil (CPO) imports ban imposed by the Gotabaya Rajapaksa regime in 2021–2022.

At the heart of the issue is the continued restriction on crude palm oil imports, which has disrupted the operations of a BOI-approved companies that manufactures and exports hydrogenated palm oil, bakery shortening, margarine, and specialty fats.

Policy flip-flops and bureaucratic delays derail hydrogenated palm oil and bakery shortening exports under ISFTA costing country valuable foreign exchange earnings.

These products   exported at zero duty under the ISFTA with Sri Lanka entitled to export up to 250,000 tonnes annually, bringing in around US$32 million in value-added foreign earnings.

Therefore it has become an urgent need for the government to take a policy decision to remove the Former President Gotabya Rajapaksa’s ban on major raw material for manufacturing Palm based products as local companies in the industry are still facing  Palm Oil fiasco.

A reputed BOI registered company operating since 20O4, which holds a valid export quota of over 100,000 MT, recently placed an import order for 1,000 mt of Malaysian crude palm oil along with another 4000mt of palm based oil to meet growing demand from Indian clients.

This, follows favorable adjustments to India’s import duty re structure in 2024. The shipment, aboard the vessel MT Sheng Hang 002, arrived at the Colombo Port on May 19, 2025.

However, due to bureaucratic indecision and outdated policy interpretation, the cargo has been denied clearance.

The company first submitted its approval request to the BOI on April 29, 2025, with BOI recommending approval to the Controller of Import and Export Control by May 2, and further clearance sought from the Secretary, Ministry of Finance on May 15.

Despite these steps and follow-ups on May 7, 21, and 22, no directive was issued to Customs for release this parcel 

The company has already brought this matter to the notice of deputy finance minister and the Indian high commission in Sri Lanka to prevent the reoccurrence of such incidents damaging the best trade practice image of Sri Lanka  

This delay has incurred US$145,000 in vessel demurrage and an additional US$100,000 in re-shipment costs to India, leading to a total loss of around US$300,000 for the company.

The vessel was eventually to leave Colombo without offloading, severely damaging the firm’s reputation with international suppliers and jeopardizing future trade relationships—thereby undercutting valuable foreign exchange inflows.

Ironically, this same company had been granted special import permissions and issued a license during the ban period of 2021–2022, based on recommendations from both the BOI and Finance Ministry

These exceptions were granted by a committee comprising Secretary to the Finance Ministry, Controller Import and Export Department, DG .Trade and Investments, and Controller of Customs in recognition of the use of this raw material for manufacturing 100 percent export-oriented value added products  

The current impasse, therefore, reflects not a lack of precedent but a failure in policy clarity and administrative action.