January 30, Colombo (LNW): In the face of strong protests from India over a recent incident involving the Sri Lankan Navy opening fire, Defence Secretary Air Vice Marshal (Rtd) Sampath Thuyacontha has defended the actions of the Navy, stating that Sri Lanka will continue to search vessels entering its waters in line with established legal protocols aimed at preventing illegal activities.

India raised a formal protest on Tuesday after the Sri Lankan Navy fired January 28 whilst detaining 13 Indian fishermen near Delft Island.

The Indian Ministry of External Affairs summoned Sri Lanka’s acting High Commissioner to lodge a complaint, asserting that the actions of the Sri Lankan Navy were unprovoked.

India also indicated that it had raised the issue with the Sri Lankan Ministry of Foreign Affairs.

In response, Defence Secretary Thuyacontha explained that the Sri Lankan Navy operates around the clock to curb illegal activities in its waters, including human trafficking, illegal fishing, and the smuggling of drugs and weapons.

He maintained that such operations are carried out within legal boundaries, and he reiterated that the Navy would continue to carry out its duties in enforcing maritime security.

Thuyacontha made it clear that the Navy’s actions were necessary and legitimate, highlighting that the search of vessels entering Sri Lankan waters is mandatory, regardless of their country of origin.

“We are committed to ensuring that our waters are protected from illegal activities, and this will continue through legal, non-confrontational methods,” he said. “If foreign vessels cooperate, there will be no issues. But if resistance is met, the situation could escalate.“

The Defence Secretary further pointed out that Sri Lanka’s recent efforts had yielded successful operations, including the seizure of significant drug shipments.

In addition to this statement, the Sri Lanka Navy’s Commander provided further details on the incident involving the two Indian fishermen who were injured during the apprehension.

He clarified that the injuries were caused by an accidental discharge of a firearm while the Navy was attempting to board a fishing vessel involved in illegal fishing activities near Kankesanthurai.

The operation had started on January 27 to disperse a group of Indian fishing boats operating illegally in Sri Lankan waters near Valvettithurai, Jaffna.

The Commander explained that the crew of the Indian fishing boat had resisted the Navy’s boarding attempt and had attempted to assault personnel, even trying to seize a firearm.

During the scuffle, a shot was discharged accidentally, resulting in minor injuries to two of the fishermen. The Navy swiftly administered first aid and transported the injured men to Jaffna Teaching Hospital for further treatment.

Despite the controversy, the Navy Commander reiterated that the Sri Lankan Navy would continue its operations to safeguard the country’s waters, assuring that these actions would be conducted professionally and in compliance with the law.

By: Isuru Parakrama

January 30, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya has stressed the critical importance of the “Clean Sri Lanka” programme, highlighting its humanitarian goals as central to its mission.

Speaking at the Colombo District Coordination Committee meeting yesterday (29), held at the District Secretariat in Narahenpita, the Prime Minister explained that the initiative is far more than just a campaign for environmental cleanliness.

During the meeting, Dr. Amarasuriya elaborated on the multi-faceted nature of the programme, noting that it encompasses a range of complex objectives that go beyond the conventional focus on waste management and environmental health.

The discussions covered a variety of pressing issues, including the allocation of land for an explosives storage facility in Colombo, plans for the future development of local government institutions, and the implementation of community empowerment initiatives.

In addition to these topics, the meeting also addressed urgent matters such as resolving land disputes concerning paddy fields along the border of Maharagama and Kesbewa, the prompt removal of waste from the Colombo Main Bus Stand, and the need to halt the unsafe disposal of garbage into the Niripola paddy fields in Seethawaka.

Reiterating the promises made during the last election, Prime Minister Amarasuriya reminded attendees that the public had voted for change, and it was essential for the government to remain true to those expectations.

“The ‘Clean Sri Lanka’ initiative is not just about cleanliness, policy execution, or legal enforcement,” she stated. “It is about improving behaviour, fostering quality relationships, and transforming the way we interact with one another and our environment.”

Dr. Amarasuriya stressed that the change required would have to begin at the individual level, with each person taking responsibility for the difference they wish to make in their own communities.

She underscored the importance of delivering quality public services, ensuring that the public felt satisfied with the service provided.

“This transformation cannot be achieved solely through directives or official orders; it must come from a collective effort and a shift in attitude,” she emphasised.

The Prime Minister reaffirmed the government’s commitment to ensuring the long-term success of the “Clean Sri Lanka” programme, calling on all stakeholders to join in fostering a cleaner, more organised, and community-oriented future for the nation.

January 30, Colombo (LNW): Laugfs Gas PLC has pledged to take measures aimed at providing the greatest possible relief to consumers in February, despite the ongoing fluctuations in global gas prices.

Dr. Niroshan J. Peiris, the Cluster Director and CEO of Laugfs Gas, stated that decisions regarding gas pricing for the upcoming month will be made in close consultation with the company’s top management team.

Dr. Peiris further commented, “Although global gas prices have yet to be announced, we are committed to ensuring that consumers benefit from the most affordable prices available. While we anticipate that global prices may remain consistent with those of January, there is still a possibility of change in the coming days. Given these variables, it is difficult to finalise the gas price for February at this time.”

January 30, Colombo (LNW): The Agricultural and Agrarian Insurance Board has announced that it will start compensating farmers whose crops were damaged by the severe flooding in November last year.

The first payments are set to be made today (30), with a focus on affected districts including Polonnaruwa, Mullaitivu, Vavuniya, and Trincomalee.

Chairman Pemasiri Jasingarachchi confirmed that the board will be crediting funds directly into the accounts of farmers whose crops were severely impacted by the floods.

In total, compensation will be issued for a substantial 13,379 acres of land, specifically for those who suffered damage to their paddy fields.

Jasingarachchi further clarified that today’s disbursements will be limited to paddy farmers, with other crop growers expected to receive their payments in the coming weeks.

By: Isuru Parakrama

January 30, Colombo (LNW): Representatives from various trade unions affiliated with the National Trade Union Centre (NTUC) convened for an important discussion with the President yesterday (29) at Temple Trees.

The meeting focused on the forthcoming national budget and the government’s broader economic strategies, which are set to impact a wide range of sectors, including public services.

Amongst those in attendance was Chandana Sooriyaarachchi, a Member of Parliament from the National People’s Power (NPP), who emphasised that the meeting included an in-depth examination of the government’s current economic framework.

A key topic of conversation was the proposed relief measures for government employees in the upcoming budget, with many union leaders seeking more substantial support.

MP Sooriyaarachchi further revealed that there was a significant proposal put forward during the discussion to consider a direct increase in the basic salary of government employees, rather than just providing temporary relief measures.

This suggestion, he noted, was aimed at offering more long-term financial stability to workers who are grappling with rising living costs.

By: Isuru Parakrama

January 30, Colombo (LNW): Showers or thundershowers will occur at times in Northern, North-central, Eastern, Uva, North-western and Southern provinces and in Matale and Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (30).

Cloudy skies can be expected over most parts of the island.

Showers or thundershowers will occur at several places elsewhere in the evening or night.

Showers may occur in Western province in the morning too.

Fairly heavy showers above 75 mm can be expected at some places in the Eastern, Uva, Southern, Western and Sabaragamuwa provinces and in Polonnaruwa, Matale and Nuwara-Eliya districts.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Southern provinces during the morning.

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

Marine Weather:

By: Isuru Parakrama

January 30, Colombo (LNW): Mavai Senathirajah, a former Member of Parliament for the Illankai Tamil Arasu Kachchi (ITAK), has died following a short illness.

He had been receiving treatment at the Emergency Treatment Unit of Jaffna Teaching Hospital after sustaining injuries in an accident at his home several days ago.

As Sri Lanka reopens passenger vehicle imports on February 1, experts are urging the government to implement a revised tax system to manage the anticipated surge in demand and reduce revenue loss from under-invoicing.

Murtaza Jafferjee, Chair of the Advocata Institute, has proposed a temporary surcharge tax on vehicle imports to address the initial demand spike. Speaking at the HNB Leasing forum titled “Sri Lanka Motor Industry: Outlook for 2025”, Jafferjee criticized the country’s rigid economic policies, which he believes encourage imports at the expense of domestic production.

 He called for a more balanced monetary and fiscal policy framework that prioritizes sustainable growth.

“The current system incentivizes imports but hinders the development of local goods,” Jafferjee stated, emphasizing the need for progressive taxation and strategic reforms to support local industries and create a sustainable economic model.

Jafferjee also highlighted inequities in the vehicle taxation structure, which taxes vehicles based on categories.

He argued that this system disproportionately affects certain population segments, making vehicle ownership inaccessible for many. To address these disparities, he proposed a flat tax system that would promote equitable access to vehicles while stimulating broader demand.

He further stressed the importance of announcing tax policies in advance and maintaining consistency to ensure market stability. This view was supported by Charaka Perera, a past president of the Ceylon Motor Traders’ Association (CMTA).

Senior Economic Advisor to the President, Duminda Hulangamuwa, explained that the primary aim of reopening vehicle imports is to generate Rs. 300 billion in government revenue. While property taxes could be a more equitable revenue source, Jafferjee acknowledged that vehicle taxation offers an easier avenue due to the strong cultural attachment Sri Lankans have to cars.

However, Jafferjee criticized the current unit-based duty system, which taxes vehicles based on engine size and capacity. He argued that this system is flawed, leading to market distortions and encouraging under-invoicing. “The current system creates inefficiencies, particularly with the differential treatment of electric and internal combustion engine vehicles,” he said.

To address these issues, Jafferjee suggested using gross vehicle weight as the basis for taxation. Unlike engine size, gross vehicle weight is less prone to manipulation and avoids interference in engineering decisions. He also advocated for a Value-Added Tax (VAT) system, calling it the most efficient and equitable way to generate revenue from vehicle imports.

Despite the policy changes set to take effect, Hulangamuwa noted that the arrival of vehicles would take time. Used vehicles are expected to take 1–1.5 months to reach the market, while brand-new vehicles could take up to six months.

The government faces the dual challenge of managing initial demand surges while ensuring fair and sustainable revenue generation. Experts like Jafferjee emphasize the importance of aligning taxation policies with long-term economic goals to create a more balanced and equitable automotive market.

Despite recent efforts by Sri Lanka Customs, the Colombo Port faces severe congestion, causing delays and financial strain on stakeholders. As of January 16, 1,615 containers were released from terminals, but only 1,337 exited the port, illustrating the bottleneck. The government’s 24-hour customs operation initiative has yet to deliver tangible improvements.

Key Challenges

Persistent Inefficiencies

While container handling at terminals has improved, delays in customs clearance and insufficient staffing persist. In 2024, the port handled 7.7 million containers (a 12.3% increase) with growing transshipments to the Middle East. However, inefficiencies are forcing shipping lines to bypass Colombo, harming its reputation as a regional hub.

Stakeholder Struggles

Importers face demurrage charges, customs fees, and transportation delays, while truck drivers endure poor working conditions and long wait times. The backlog also disrupts the supply chain for export processing, exacerbating financial losses.

Inadequate Infrastructure and Resources

The port operates with only two scanners, and customs typically closes by 3 a.m., far from the promised 24/7 schedule. Some shipments take up to eight days to clear, despite originating from nearby locations like India. Internal disputes among stakeholders and political factors further worsen the situation.

Export-Import Imbalance

Export containers face significant delays due to priority given to imports by a private terminal operator. Exporters, who pay standard fees for port access, see their rights violated, causing disruptions in foreign exchange earnings and national output.

Short-Term Solutions

24/7 Customs Operations

Customs, along with inspection authorities like the Food Control Department and Quarantine Services, must operate round-the-clock until the backlog clears.

Emergency Resource Allocation

Deploy additional resources for inter-terminal trucking and container storage, including establishing secure off-site depots.

Incentives for Transporters

Short-term incentives will have to be encouraged transporters to move released containers out of the port promptly.

Improved Coordination

It has to facilitate better communication between customs and inspection agencies to streamline clearance processes.

Long-Term Solutions

Capacity Expansion and Modernization

Increase inspection points, upgrade technology, and adopt best practices from other Asian ports. Enhanced use of intelligence tools and blacklisting non-compliant traders can boost efficiency.

Systematic Improvements

Establish a mechanism for real-time communication between customs, industry stakeholders, and government organizations to prevent recurring issues.

Strategic Policy Review

Analyze recurring and seasonal port challenges, as well as regional policy impacts, to proactively mitigate congestion.

Cultural and Operational Shift

Encourage a paradigm shift in business practices within customs and port operations, fostering a more business-friendly environment.

Consequences of Inaction

Failing to address the congestion threatens Colombo’s status as a key logistics hub. Delays could drive foreign investors away, while inefficiencies risk long-term economic damage. Industry experts argue that these systemic issues could have been resolved without involving President Anura Kumara Dissanayake, who recently convened a top-level meeting to tackle the crisis.

Lessons from the Past

Port congestion is not new to Colombo. Previous crises were mitigated through coordinated efforts between customs, the Shippers Council, and industry leaders. Revisiting these solutions and adopting international best practices are crucial to restoring Colombo Port’s position as a vital regional and global trading center.