January 27, Colombo (LNW): Sri Lanka and China have agreed to establish a working group to resume discussions on a long-delayed Free Trade Agreement (FTA), according to Foreign Minister Vijitha Herath.
This decision follows President Anura Kumara Dissanayake’s recent state visit to China, during which both nations reaffirmed their commitment to advancing the bilateral trade agreement.
The FTA discussions, stalled since 2018 due to disagreements over key clauses, are now back on track, with both sides pledging to finalize a comprehensive deal.
A joint statement emphasized the principles of equality, mutual benefit, and win-win outcomes.
Sri Lanka expressed gratitude for China’s efforts to promote Sri Lankan exports, while China reiterated its support for Sri Lanka’s tea, gem, and other industries.
Efforts include connecting Sri Lankan enterprises with Chinese importers and facilitating their participation in expos such as the China International Import Expo and other trade platforms.
Negotiations had previously faltered over Sri Lanka’s concerns regarding tariff liberalization timelines, tariff line percentages, and review periods.
Sri Lanka sought immediate zero tariffs for 500 items and a 10-year review clause, while China proposed broader liberalization, favoring 90% of tariff lines and a 20-year review.
However, recent virtual negotiations suggest China is now more flexible on these issues.
The geopolitical backdrop adds complexity to the FTA discussions. Analysts highlight Sri Lanka’s delicate position in a proxy cold war involving China, India, and the U.S.
This rivalry has often made Sri Lanka cautious in engaging with major powers.
However, the 2022 economic crisis and sovereign debt default have forced the country to seek diversified foreign investments and trade partnerships to stabilize its economy.
During President Dissanayake’s visit, Sri Lanka welcomed increased Chinese investments and committed to fostering a favorable business environment.
The joint statement outlined plans to expand cooperation in logistics, green development, and the digital economy, aiming for sustainable development and economic transformation in Sri Lanka.
China’s renewed interest in the FTA and willingness to address past disagreements reflect its broader strategic goals in the region.
For Sri Lanka, a comprehensive FTA could provide critical economic relief by boosting exports and attracting investments. Both countries appear eager to move forward, signaling a potential breakthrough in their economic partnership.
As the working group begins its deliberations, the focus will be on addressing outstanding issues and achieving a balanced agreement that benefits both nations.
January 27, Colombo (LNW): The Sri Lankan government recently took responsibility for the release of 323 containers by Sri Lanka Customs without inspection, citing operational bottlenecks at the Colombo Port.
According to Ports Deputy Minister Ruwan Kodithuwakku, this decision was made to address delays and congestion caused by the daily arrival of over 2,000 containers.
He clarified that this was an uncommon measure, implemented through a three-member committee based on specific criteria.
Samagi Jana Balawegaya (SJB) MP Harshana Rajakaruna raised concerns in Parliament regarding these uninspected containers, some of which were reportedly flagged in the ‘red zone,’ signaling potential risks.
He expressed fears about the lack of transparency surrounding their contents, which could lead to regulatory lapses. In response, the Deputy Minister acknowledged these concerns and emphasized the need for long-term solutions, such as expanding container yards, to prevent similar issues in the future.
The Association of Container Transporters criticized the government’s handling of the situation, stating that the current infrastructure and manpower were insufficient to manage inspections properly.
They suggested implementing a streamlined digital system to improve monitoring and accountability. Meanwhile, the Customs Trade Union Alliance (CTUA) distanced itself from the decision, refusing to take responsibility for the uninspected containers.
The union raised concerns that some containers might contain substandard goods, such as unapproved medicines, unsafe cosmetics, or even illegal items like unauthorized cigarettes, drugs, or weapons. They warned that such lapses could jeopardize public safety and national security.
The CTUA also questioned the legal framework that allowed the bypassing of mandatory customs inspections, emphasizing that around 80% of the goods in these containers required thorough examination.
The union called for clarification on the higher authorities responsible for authorizing the release, pointing to potential gaps in oversight and accountability within the customs process.
Critics argue that releasing uninspected goods undermines public confidence in regulatory institutions and compromises the integrity of customs operations. The risk of harmful or illegal items entering the market raises significant concerns for public safety.
This incident has sparked widespread apprehension about legal compliance, transparency, and national security, putting pressure on the government to provide clear explanations and implement measures to prevent similar occurrences.
Potential risks include public health hazards if substandard goods, such as unapproved medicines or unsafe cosmetics, are allowed into circulation. There is also the possibility of illegal imports, such as prohibited drugs, unauthorized cigarettes, or weapons, which could pose serious security threats.
The CTUA’s questioning of the legal basis for releasing these containers without inspection highlights concerns about procedural lapses. They are seeking clarification on the legal provisions that permitted such actions, particularly since a significant portion of the goods required mandatory customs checks.
The union’s disassociation from the decision signals potential weaknesses in accountability within the customs process. This situation underscores the importance of a robust oversight system to ensure compliance with legal standards and maintain public trust.
In conclusion, the government’s decision to release these containers without proper inspection has raised significant concerns about public safety, legal compliance, and regulatory integrity. It is crucial for the authorities to provide transparent explanations and take steps to prevent similar incidents in the future to safeguard national security and maintain the public’s confidence in customs operations.
January 27, Colombo (LNW): Sri Lanka’s apparel export earnings reached $4.7 billion in 2024, reflecting a 5% year-on-year (y-o-y) growth, according to the Joint Apparel Association Forum (JAAF).
When combined with the country’s textile exports, the total export value surpassed $5 billion, showcasing the resilience of the industry despite local and global challenges.
Compared to the pre-pandemic benchmark of 2019, when exports were $5.3 billion, 2024 figures reflect a 10.3% shortfall. This underscores the need for focused interventions to reclaim lost ground and exceed pre-pandemic levels.
Performance across key markets revealed mixed outcomes. Exports to the US, Sri Lanka’s largest market, rose by 5.23% to $1.9 billion but remained 19.4% below 2019 levels.
Exports to the UK recorded a strong 7.65% growth, nearing pre-pandemic figures, driven by demand for ethically and sustainably manufactured garments.
Growth in the EU was modest at 0.81%, highlighting challenges in a highly regulated and competitive market.
Meanwhile, exports to other destinations increased by 10.13%, reflecting successful penetration into new markets and the industry’s evolving ability to label, pack, and ship directly to third countries on behalf of customers.
To strengthen the industry’s competitiveness, localised fabric production has emerged as a priority. The Eravur Textile Zone, a 300-acre facility, is designed to house textile-dyeing, washing, knitting, and weaving plants.
This project is expected to significantly reduce production costs, save foreign exchange, and enhance Sri Lankan exports’ appeal to global buyers who demand traceability and sustainability.
JAAF Secretary-General Yohan Lawrence highlighted the significance of the Eravur Textile Zone, calling it a “lifeline” for the industry.
He stressed that localising fabric production is critical to boosting competitiveness and meeting global market demands.
Analysis of the past five years reveals a gradual recovery for the sector. The pandemic caused a significant dip in 2020, with exports dropping to $4.1 billion, a 22% decline from 2019.
Exports briefly peaked in 2022 but saw setbacks in 2023 due to global inflation and reduced consumer spending. The modest growth of 5% in 2024 also reflects pricing pressures faced by the industry.
JAAF emphasizes the importance of continued collaboration between industry stakeholders and the government.
Critical areas include enhanced market access, infrastructure projects like the Eravur Textile Zone, predictable electricity tariffs, and improved operational efficiency at Colombo Port.
Recent electricity tariff adjustments have been welcomed, as Sri Lanka’s energy costs remain high compared to competitors. J
AAF has advocated for energy sector reforms to adopt cost-effective generation and pass savings to consumers.
In a key policy development, Sri Lanka and Indonesia have jointly applied to the UK DCTS authorities for fabric cumulation. If approved, apparel made in Sri Lanka using Indonesian fabric could enter the UK duty-free, boosting competitiveness in that market.
Looking ahead, JAAF is optimistic about surpassing pre-2019 export levels. Strategic investments and reforms could help the industry achieve $6 billion in export earnings, solidifying Sri Lanka’s position as a global leader in quality and ethical manufacturing.
With a focus on sustainability and traceability, the sector remains poised for growth if the right measures are implemented.
January 27, Colombo (LNW): Dr. Satyanjal Pandey, the Acting High Commissioner of India to Sri Lanka, has underscored the deep and enduring relationship between India and Sri Lanka, referring to the two countries as “civilisational partners” with histories and futures that are closely intertwined.
His remarks came during an evening reception at India House in Colombo on the occasion of India’s 76th Republic Day.
In his address, Dr. Pandey spoke passionately about the shared democratic values and cultural connections that form the foundation of the unique bond between the two nations.
He reflected on the long-standing ties, which have shaped the history, traditions, and governance of both India and Sri Lanka.
“Sri Lanka, like India, has consistently upheld democracy and the ideals of a republic since gaining independence,” Dr. Pandey noted. “Both of our nations, as vibrant democracies, celebrate our diversity and dynamism. But our connection runs far deeper. We are civilisational partners, bound together by shared history, language, religion, and a common ethos. Our destinies have always been interconnected — not only through our past, but also looking towards our collective future.“
He went on to emphasise the geographical closeness between India and Sri Lanka, which he described as a natural advantage, fostering mutual cooperation and understanding.
“Our proximity as neighbours means that we must be sensitive to each other’s interests, always ready to offer support without being influenced by external forces or third-party pressures,” Dr. Pandey continued. “This is the spirit in which our relationship thrives, built on trust, respect, and an unwavering commitment to each other’s progress.“
Full Statement:
This day marks the completion of 75 years since the Constitution of India commenced. It is an occasion to celebrate the edifice of the Indian democracy. This a landmark achievement, for when Bharat gained independence, there were numerous hesitations, several skeptics of having the longest written Constitution govern a country that had been impoverished over the years by its colonial masters. However, the Indian Constitution defied and nullified all such doubts, guiding us to where we stand today, as the fifth largest economy in the world and on our way to soon becoming the third largest with a 5 trillion dollar GDP. ‘We the people’ have resolutely upheld the values of the republic for three quarters of a century.
Democracy is not a mere political construct, it is a tradition in India. India is the Mother of Democracy. Evidence has it that the ethos of a limited government and countervailing institutions prevailed in ancient India, in the age of the Buddha. Allow me to indulge you in some trivia. A quote by the Chinese traveller and Buddhist Monk Xuanzang that has stayed with me, “People of distant places, with diverse customs, generally designate the land they most admire as India”. This is from the account of Xuanzang’s travels in the ‘Indosphere’ in about 6th century CE. India was then an exporter of its civilisation – from religion, art, philosophy, to textiles, technology, even mathematics, medicine, literature, India was the cradle of it all.
Today, the nation is in the early years of Amrit Kaal, the period leading to the centenary of Independence. This is the time of an epochal transformation. India is ‘happening’ at a pace and scale that is unprecedented. Let me give you a readout of highlights from my country from just these last couple of weeks.
We saw the launch of the Genome India Project – a new platform and framework for sharing10,000 human genome dataset sequenced from 99 ethnic populations. A fillip to India’s Bio Economy, which was valued at 10 billion dollars in 2014, and has now grown to over 150 billion dollars. With more than half a billion already having digital health IDs, this will usher an era of targeted medicine in India.
Bharat Global Mobility Expo bringing the entire mobility value chain under one roof just concluded. India has witnessed rapid growth in electric mobility. In the last decade alone, electric vehicle sales have increased by 640 times. In another update, For the first time, India commissioned a destroyer, a frigate and a submarine together – all Made in India. INS Surat, INS Nilgiri and INS Vaghsheer. ISRO successfully demonstrated space-docking, or the joining of two fast moving satellites in space, making India the fourth country in the world — after the United States, Russia, and China — to have this capability . On this success rests ISRO’s vision for the future of Indian space exploration, which includes building a space station and putting a person on the Moon.
We also marked 150th Foundation Day of India Meteorological Department. IMD has enabled today that the Early Warning for All facility is reaching more than 90 percent of the country’s population. Weather forecasts reach directly on WhatsApp. Services like the Meghdoot mobile app make this information available in all the local languages of the country. Till a decade ago, only 10 percent of the farmers were able to use any weather related advice – Today this number has increased to more than 50 percent.
Rural Land Digitisation has achieved 92% coverage, giving legal property ownership to over 20 million rural families.
The Sonmarg Tunnel was inaugurated, in what is one of the most difficult terrains in India, ensuring year-round seamless connectivity between Srinagar and Ladakh.
We had the Viksit Bharat Young Leaders Dialogue, wherein the Prime Minister Shri Narendra Modi engaged with 3,000 dynamic young leaders from across India, to mobilise their energies towards making India a developed country by 2047.
I can go on and on, but this little recap over the last two weeks in India is only to demonstrate the eclectic mix of energy and vigour in the country today. This energy is visible across domains – Be it science and technology, climate adaptation, digitisation, manufacturing and industry, defence capability, infrastructure and connectivity. As the youngest country in the world, Indian aspirations for sustainable and inclusive growth are visible across the country.
The underlying mantra of this growth is Sabka Saath, Sabka Vikas. Our vision of “Atmanirbhar Bharat” (self-reliant India) is not just about self-sufficiency; it is about being a partner in progress for our neighbours and the global community. We intend to take our friends along this trajectory guided by our policy of Neighbourhood First and Vision SAGAR.
Today, I am delighted to be here as the Acting High Commissioner to India’s closest maritime neighbour and longstanding partner, celebrating the 76th Republic Day amongst our Sri Lankan friends.
Sri Lanka just as India has remained a steadfast democracy and a republic through its independent years. India and Sri Lanka not only are fellow democracies, sharing in our diversity and dynamism, we are civilisational partners, sharing our history, language, religion and ethos. Our stories have intertwined— and our futures are interlinked. Our geographical proximity makes us natural partners and the same proximity demands a mutual sensitivity to each other’s interests. It also requires each of us to support the other with an unmatched spontaneity, unencumbered by third party pulls and pressures.
India has time and again demonstrated that it is a dependable partner and a reliable friend for Sri Lanka. Whether it is natural disasters, mishaps at sea, the COVID pandemic or the recent economic crisis, India has come to Sri Lanka’s assistance always as the first responder. Our support has been timely, quick and unconditional.
Indiaas the co-chair of the Official Creditors Committee remains involved in financial stabilization effort for Sri Lanka through its engagement with the IMF. In addition to the ongoing debt restructuring, India has created additional fiscal headroom for Sri Lanka by converting USD 100 mn worth of developmental debt assistance to grants. This takes India’s grant assistance to Sri Lanka to USD780 million, making India the principal development partner for Sri Lanka. India’s development assistance projects exist in each of the 25 districts of Sri Lanka. Completed projects amount to USD390 million, ongoing projects are approx. USD211 million and committed grant projects in the pipeline stand at nearly USD180 million.
As Sri Lanka turns a corner from economic recovery to growth, our leadership has indicated a strategic shift from debt-driven models towards investment-led partnerships across different sectors. This is a major highlight of the Joint Statement agreed upon by Prime Minister Shri Narendra Modi and President HE Anura Kumara Disanayake during the latter’s visit to India in December 2024. These investment projects are focused on enhancing physical, digital and energy connectivity – the key pillars of our partnership.
The energy projects include establishing electricity-grid connectivity and multi-product petroleum pipelines between both the nations.We have jointly decided that, post the successful launch of the Nagapattinam – Kankesanthurai Ferry service, we will also initiate a ferry service between Rameshwaram and Talaimannar. You must have seen that IndiGo has emerged as the largest foreign carrier in Sri Lanka. On the digital connectivity front, we are working to implement the Sri Lanka Unique Digital Identity project in mission mode. In keeping with the promise of the Sri Lankan government for people-centric digitisation, SL UDI will be the foundational DPI to unlock benefits of the Digital Stack. A Joint Working Group has been established to explore the implementation of DPI stack in Sri Lanka.
We will also be assisting Sri Lanka in training 1500 Sri Lankan civil servants across ministries and departments, with a focus on e-governance including the Government e-Marketplace, India’s multimodal logistics digital dashboard – PM Gati Shakti, digitised customs and other taxation procedures. India’s capacity building initiatives extend to students as well, through the offer of nearly a 1000 scholarship slots under various schemes.
Friends, while capacity building remains as a major pillar of our defence partnership, we are continually expanding and strengthening this dimension further given our mutual and inseparable security interests. Last year saw the establishment of the Maritime Rescue and Coordination Centre in Sri Lanka amongst other assistance vital for Sri Lanka to enhance its maritime domain awareness. Both sides have now decided to work on a Security Cooperation Agreement. We have also agreed to cooperate on Hydrography. The Colombo Security Conclave as an important platform for regional peace, security and development will continue to be buttressed.
As you can see, the India-Sri Lanka partnership today is all-encompassing. India’s growth and its capacities have been made available for Sri Lanka to partake in, as per Sri Lanka’s needs and priorities. It is not often that one country tells another to exploit its markets and its scale. We do that – for the intent is to transform the bilateral relationship into a new standard for friendly and neighbourly ties. These ties maybe non-reciprocal in benefits, but are underpinned by a significant measure of trust and goodwill that is very much reciprocal and mutual.
The foundation of the comprehensive partnership between the two countries rests on the bonds of longstanding religious and spiritual links, filial friendships, language exchanges, traditional trading routes and business exchanges between our peoples. When India declared the Pali language as a Classical Language, Sri Lanka joined us in this celebration. We have recently supported the reprinting of the Pali Grammar book Namamala. This World Hindi Day, Sri Lanka’s first-ever open learning certificate course in Hindi was also launched. Legend and devotion connect our people through the Ramayana Trail in Sri Lanka and Buddhist Circuit in India. It is no surprise that India remains the largest source of tourists for Sri Lanka.
As is evident, the India-Sri Lanka partnership just as democracy, is people-led and people-centred. People lie at the core of each project, every initiative undertaken by the two countries. To strengthen that core, to ‘Foster Partnerships for a Shared Future’, I look forward to your continuous cooperation and support.
January 27, Colombo (LNW): Sri Lanka has set a new milestone in its export sector, with the latest report from the Sri Lanka Export Development Board (EDB) revealing that the country reached an all-time high of US$ 16.17 billion in export revenue for 2024.
This achievement surpasses the previous record of US$ 15.72 billion set in 2018, marking a significant boost in the nation’s economic performance.
The 2024 export figure is made up of US$ 12.70 billion from merchandise exports and US$ 3.46 billion from services exports, demonstrating a robust performance across various industries.
This growth highlights the resilience and competitiveness of Sri Lanka’s export sector, despite the challenges faced by global markets.
Provisional data from Sri Lanka Customs further underscores this positive trend, revealing that merchandise exports in December 2024 alone reached US$ 1,042.5 million.
This represents a 4.06 per cent increase compared to the same month in 2023, driven by strong performances in key sectors such as Apparel & Textiles, Tea, Rubber-based products, Coconut products, Spices & Concentrates, and Food & Beverages.
In addition to merchandise, services exports also saw impressive growth in December 2024, with earnings estimated at US$ 322.92 million.
This reflects a significant 29.96 per cent year-on-year increase, highlighting the expansion of the services sector, which has been increasingly important to Sri Lanka’s export diversification strategy.
Overall, the total export earnings for December 2024, combining both merchandise and services, reached US$ 1,365.42 million.
This represents a moderate year-on-year growth of 9.21 per cent, reinforcing the trend of steady progress across both goods and services exports.
January 27, Colombo (LNW): Sri Lanka Police have reported a significant crackdown on criminal activity, with 249 individuals directly involved in criminal acts arrested during a 12-day period as part of a special operation launched to curb rising crime rates across the country.
The operation, which commenced on January 12, 2025, has also seen the arrest of 4,020 people who were the subjects of outstanding warrants.
As part of the comprehensive operation, authorities have conducted widespread inspections, with more than 277,000 individuals and 104,000 vehicles thoroughly checked.
This extensive monitoring has been instrumental in the successful identification and arrest of suspects, further bolstering the Police’s efforts to restore public safety.
In addition to targeting individuals directly linked to criminal activity, the operation is also focused on reducing specific crimes such as robberies and house break-ins, which have been prevalent in recent months.
Police officials have noted a marked decrease in these particular types of crime since the operation’s launch, suggesting that the heightened security measures are having a positive impact on curbing criminal behaviour.
Authorities have underscored the ongoing nature of the operation, with additional efforts expected to continue throughout the year.
January 27, Colombo (LNW): President Anura Kumara Dissanayake has assured that the government will provide a suitable residence for former President Mahinda Rajapaksa if he has nowhere to move following his departure from his current residence.
Addressing a public gathering in Thambuththegama, the President raised questions about the reluctance of former leaders to vacate government-provided homes, despite many public officials, including himself and his ministers, not yet occupying their allocated residences.
Dissanayake emphasised that it was unjust for anyone to continue living in a large mansion funded by taxpayers, particularly when there is no clear need for such extravagant accommodation.
“It seems unreasonable to reside in such a grand property while the rest of us, including the President and Cabinet Ministers, have not yet moved into our assigned homes. If former Presidents are struggling to relocate, we will certainly provide them with a suitable place to stay,” he stated.
“However, it is important to recognise that the mansion they occupy is far too large for the purpose it serves.“
The President also dismissed accusations that the request for the former President to vacate his residence was an act of political persecution.
“This is not about political vendettas; it is about taking our country in a new direction. We are simply asking for a change. Before we ask anyone to leave, they must first vacate the premises,” Dissanayake clarified.
He reiterated that such actions are in the best interests of the public, urging that the use of taxpayers’ funds must always be carefully considered.
January 27, Colombo (LNW): Sri Lankan authorities have reported a notable decline in fatal road accidents, following the introduction of a special vehicle inspection operation in December 2024.
According to the latest figures from the Sri Lanka Police, there were 129 road accidents between January 1 and 25, 2025, a decrease compared to the 155 accidents reported during the same period in 2024.
In particular, the Police highlighted a significant reduction in the number of fatal accidents, with 26 fewer fatalities recorded this year than in the previous year.
This decline has been welcomed as a positive outcome of the newly implemented road safety measures.
The special vehicle inspection operation, which was launched to enhance road safety, remains ongoing. Officers are actively inspecting vehicles to ensure compliance with safety regulations, and additional measures have been introduced to curb reckless driving.
In a further step to deter dangerous driving, plainclothes officers have been stationed on public transport routes to monitor and apprehend individuals engaging in reckless or unsafe driving behaviours.
The Police have emphasised their commitment to continuing these efforts, with the aim of further reducing road accidents and fatalities across the country.
January 27, Colombo (LNW): Yoshitha Rajapaksa has been granted bail by the Colombo Magistrate’s Court following his arrest in connection with a money laundering investigation.
The court set his bail conditions at two surety bonds, each valued at Rs. 50 million.
The decision to grant bail comes after Rajapaksa was remanded earlier this week as part of the ongoing investigation into his alleged involvement in illicit financial activities.
The charges relate to the purchase of property worth Rs. 34 million in Ratmalana, which is believed to be linked to violations under the Prevention of Money Laundering Act.
January 27, Colombo (LNW): Sri Lanka has enjoyed a remarkable surge in tourist arrivals in the first three weeks of January 2025, with provisional figures from the Sri Lanka Tourism Development Authority (SLTDA) revealing that over 177,000 international visitors have arrived on the island so far.
This marks a significant 19 per cent increase compared to the same period last year, when 148,898 tourists visited the country.
Between January 1 and 22, a total of 177,403 people arrived in Sri Lanka, equating to an average of approximately 8,063 arrivals per day.
The weekly average is around 59,000, a promising sign that the tourism sector is rebounding strongly after challenges in recent years.
India continues to be the largest source of tourists, contributing 17.4 per cent of all arrivals. This is followed by the Russian Federation, which accounts for 14.4 per cent of the total influx.
The United Kingdom, traditionally a major market for Sri Lankan tourism, remains in third place, with 8.4 per cent of the arrivals. Germany, another key European market, is close behind, contributing 6.6 per cent of the total number of tourists.
In addition to these top markets, Sri Lanka has also seen interest from other significant countries, including China, Australia, France, the United States, Poland, and the Netherlands.
The variety of international visitors highlights the island’s growing appeal as a destination for diverse travellers, with people from across the globe seeking to explore its rich culture, stunning landscapes, and renowned hospitality.
Industry experts are optimistic that the strong start to the year will continue, with many expecting tourism numbers to rise further in the coming months as Sri Lanka continues to promote its attractions to new and returning visitors.
