By: Staff Writer
March 15, Colombo (LNW): An alleged U.S. submarine strike on an Iranian naval vessel near Sri Lanka has created a toxic mix of environmental damage, economic anxiety, and geopolitical tension while the government in Colombo remains conspicuously silent.
The Iranian frigate IRIS Dena sank after being struck by a torpedo reportedly fired by the U.S. Navy submarine USS Charlotte (SSN-766) on March 4, roughly 40 nautical miles south of Sri Lanka’s coast.
The vessel had just participated in the international naval gathering International Fleet Review 2026 hosted in Visakhapatnam.
Within days, oil slicks appeared near the beaches of Hikkaduwa, raising fears of a new marine pollution crisis in a region already scarred by previous maritime disasters.
Authorities from the Marine Environmental Protection Authority launched emergency cleanup operations alongside the Sri Lanka Navy. Officials claim nearly 90 percent of the oil has been removed, although the origin of the slick has not yet been officially confirmed.
Environmental groups say the timing could not be worse.
March and April mark a critical period for marine reproduction along Sri Lanka’s southern coast. Fish eggs and larvae, known as ichthyoplankton, float near the surface, making them highly vulnerable to toxic oil contamination.
“Toxic hydrocarbons can kill fish larvae and damage coral reefs,” warned marine conservationist. “Once these ecosystems are damaged, recovery can take years.”
Sea turtles that surface frequently in Hikkaduwa’s shallow waters could also face serious threats from the contamination.
For Sri Lanka’s coastal economy, the implications are severe.
Fishing communities risk losing income if contaminated waters reduce catches. Tourism operators fear polluted beaches could discourage visitors during one of the busiest seasons for southern resorts.
However the most controversial aspect of the crisis may be the government’s muted diplomatic response.
Under the United Nations Convention on the Law of the Sea, states are obligated to prevent marine pollution and may face liability if military actions cause environmental harm.
Despite the potential legal implications, the administration led by the left-leaning National People’s Power alliance and its core party, the Janatha Vimukthi Peramuna, has not publicly challenged the United States over the alleged attack.
Political analysts say the silence reflects the realities of Sri Lanka’s economic vulnerability.
After a devastating financial crisis in recent years, Colombo continues to rely heavily on Western financial institutions, development aid, and international partnerships.
Challenging Washington could therefore carry significant diplomatic and economic risks.
But critics argue that failing to address the incident could undermine Sri Lanka’s sovereignty over its surrounding seas.
“With nearly a quarter of global oil shipments passing near Sri Lanka, our waters are already extremely vulnerable,” one environmental activist said. “If foreign military conflicts start spilling into our seas, the consequences could be catastrophic.”
As investigations continue, one question remains unanswered: whether Sri Lanka’s coastline has become collateral damage in the escalating rivalry between global powers.
Superpower Clash Pollutes Sri Lanka Seas as Government Stays Quiet
SriLankan Airlines Struggles Persist amid Legacy Debt Burden
By: Staff Writer
March 15, Colombo (LNW): Sri Lanka’s national carrier, SriLankan Airlines, remains a financial and operational challenge for successive governments, even as the current administration reaffirms its commitment to preserving the brand.
Speaking at the LOLC Securities Forum last week, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe acknowledged the airline’s long-standing cost to the state, stressing that the government believes maintaining a national carrier is essential for the island’s connectivity.
“The airline has been a huge burden to the Government and to the people of Sri Lanka, but our policy is that the country needs to have a national carrier,” he said, highlighting the carrier’s strategic importance.
SriLankan Airlines has faced decades of financial instability, with recurring operational losses and accumulated legacy debts. As of March 2026, the airline’s reported liabilities exceed Rs. 250 billion, while its total assets are estimated at just over Rs. 120 billion, indicating a substantial imbalance. These figures underscore the ongoing pressure on public finances and raise questions about the sustainability of past restructuring attempts.
Abeysinghe outlined the government’s current strategy, which includes a three-year operational turnaround plan presented by the airline’s management, supported by a government allocation of Rs. 1 billion. The plan targets cost reduction, route rationalisation, and efficiency improvements, aiming to increase revenue without relinquishing the airline’s national identity.
While officials have signalled the potential for strategic partnerships, they emphasise that the SriLankan Airlines brand must remain under national control. “We might go for an investment partnership, but we are not willing to lose the brand,” Abeysinghe said. Any partner would likely bring both financial and operational support to strengthen the airline before entering negotiations.
Connectivity remains a core justification for the national carrier. SriLankan Airlines provides direct international flights to destinations crucial for trade, tourism, and diplomatic engagement. The government also considers the airline’s international landing slots as strategic assets to be safeguarded. Losing these slots could undermine Sri Lanka’s position in regional and global aviation networks.
Experts caution that the airline’s future is fragile. Previous restructuring efforts under past administrations including debt write-offs, government bailouts, and operational reforms—have produced limited results. Abeysinghe acknowledged that if the current strategy fails, authorities may have to reconsider their approach, suggesting that the government could explore more radical options, including privatization or partial asset divestment.
For now, the airline remains a symbolic yet costly national asset, balancing the twin imperatives of operational viability and national identity. Observers warn that the next few years will be critical: success could restore SriLankan Airlines as a competitive regional carrier, while failure may deepen the fiscal burden on the country.
Sri Lanka Targets Export Diversification to Weather Global Shocks
By: Staff Writer
March 15, Colombo (LNW): Sri Lanka is taking bold steps to revitalise its export sector, with the National Export Development Plan (NEDP) set for release next month. Chairman of the Export Development Board (EDB), Mangala Wijesinghe, outlined a strategy aimed at achieving over 10% annual export growth by combining product diversification with expansion into emerging markets.
The plan seeks to maintain Sri Lanka’s traditional exports tea, apparel, rubber, and coconut-based goods—while prioritising sectors with higher global demand, including automotive parts, electronics, processed food, spices, minerals, and gems and jewellery. “These industries offer significant opportunities for Sri Lanka to move up the value chain,” Wijesinghe said.
A key focus of the NEDP is reducing overreliance on a limited number of markets. Currently, US and EU markets account for nearly half of all Sri Lankan exports, making the country vulnerable to global economic shocks. Recent geopolitical tensions, particularly the Gulf War crisis, have underscored the risks: rising freight costs, disrupted shipping routes, and volatile oil prices could affect the competitiveness of exports, especially in tea, apparel, and spices.
The government is actively promoting market diversification, expanding trade with Africa, Asia, and the Middle East. Last year alone, exports to Africa grew 46%, while exports to the Middle East rose 25%, highlighting the potential of non-traditional destinations.
To further accelerate growth, Sri Lanka will leverage trade agreements, including SAFTA, APTA, bilateral FTAs with India and Pakistan, and EU duty-free access under GSP+. The recent extension of zero-tariff access to the UK is expected to benefit multiple sectors, particularly garments and processed foods.
Financially, the country faces both opportunity and risk. The NEDP assumes sufficient investment in infrastructure, quality standards, and logistics to support high-value exports. Any delays or policy missteps could reduce market competitiveness and undermine projected growth. Moreover, external shocks such as rising oil prices or further Gulf instability could force exporters to absorb higher costs, impacting profit margins and export volumes.
Analysts suggest that moving up the value chain will require strategic public-private partnerships, technological upgrades, and targeted support for emerging sectors. The plan also recognises that maintaining Sri Lanka’s reputation for quality products is critical for success in competitive international markets.
If executed effectively, the NEDP could strengthen Sri Lanka’s economic resilience, reduce dependency on a few markets, and open new revenue streams for exporters. However, global uncertainties, including geopolitical tensions in the Gulf, remain a potent risk to the nation’s ambitious export growth targets.
Tariff Overhaul Signals Economic Reform, But Revenue Risks Loom
By: Staff Writer
March 15, Colombo (LNW): Sri Lanka is preparing a sweeping trade reform aimed at phasing out complex para-tariffs, including the Cess and Port and Airport Development Levy (PAL), as part of a broader plan to modernize its economy and enhance export competitiveness. The reforms, set to begin in 2026, will simplify import duties into a four-tier structure (0, 10, 20, 30 percent) and gradually remove protectionist levies.
Export Development Board sources indicate the move is linked to commitments under the IMF-supported Extended Fund Facility (EFF) and the World Bank’s RESET program, which prioritize integrating Sri Lanka into global value chains by removing trade-distorting measures. The fifth review of the EFF is dependent on the successful execution of these reforms.
The government will phase out para-tariffs on 2,634 imported goods over four years, replacing them with standard VAT and Social Security Contribution Levy (SSCL) mechanisms. Key adjustments include eliminating the Rs. 100 per kg Cess on imported fabric, replaced with VAT, and substituting the SCL on coconut and palm oil with VAT/SSCL.
According to Ministry of Finance officials, these reforms are intended to support exporters by reducing input costs, while maintaining revenue stability through a gradual transition. A National Tariff Policy Committee, led by a Deputy Secretary to the Treasury, has been tasked with overseeing the phased implementation.
Economists highlight the potential benefits for Sri Lanka’s export sector, particularly in manufacturing, apparel, and agro-based industries. Simplified tariffs can reduce compliance costs, enhance transparency, and improve the country’s attractiveness for foreign investment.
However, there are risks to fiscal stability. Para-tariffs currently contribute a significant portion of customs revenue, and their removal could lead to short-term budget deficits if offsetting measures are insufficient. “The challenge will be balancing liberalization with revenue needs,” said a trade analyst.
The reforms also carry strategic implications for Sri Lanka’s trade policy. By reducing protectionism and aligning with international norms, the country positions itself to leverage global trade agreements and improve integration into regional and global value chains. This is seen as critical to improving the competitiveness of exports and resilience against external shocks.
Despite initial delays caused by political changes, the current administration has renewed its commitment, viewing the tariff overhaul as a cornerstone of the 2026 budget and a step toward sustainable economic growth. If executed carefully, the reforms could provide a transparent, investor-friendly trade environment while safeguarding local industry competitiveness and boosting Sri Lanka’s export potential.
Prime Minister Urges Caution in Sharing Information as Misinformation Threatens Society’s Stability
March 15, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya has raised serious concerns over the growing erosion of public trust in media, highlighting the dangers posed to society when misinformation spreads unchecked.
Speaking at the “Sandeshaya” Media Awards Ceremony held at Ananda College’s Kularathne Hall in Colombo, the Prime Minister stressed the importance of verifying information before sharing it on social media, particularly in today’s rapidly evolving media landscape.
The event, aimed at encouraging Sri Lankan students to actively engage in the national media conversation, also sought to foster ethics, responsibility, and critical thinking.
Addressing the audience, the Prime Minister reflected on the challenges brought about by the swift advancements in information technology and media. She noted:
“We live in an era where information technology and the media are changing rapidly. Along with these changes, many opportunities have emerged, but we are also confronted with numerous challenges.
We must prepare our younger generation to live in a society and a world transformed by information technology and the media.
When we observe the changes taking place in the media today, we can say that the media and information have become democratized. In the past, access to knowledge and information was largely limited to privileged or powerful groups. The authority to communicate information and decide what should be disseminated was held by a small group. However, with the advancement of technology, this has changed dramatically. As a result of this revolutionary transformation, information, data, and knowledge have now become accessible to everyone. In that sense, it is a positive development.
At the same time, we are no longer merely media viewers or consumers. As citizens, we can also become media creators. Citizens now have significant space to engage with the media and share information. While this is positive in one sense, it also carries certain dangers. There are serious questions, issues, and challenges regarding responsibility and credibility in the dissemination of information. Today, information flows so rapidly that it is sometimes difficult to determine what is true. Making decisions has become increasingly challenging.
Not only in our country but globally, there have been many instances where societies have been set ablaze due to misinformation or deliberately distorted information. We have witnessed numerous occasions where people’s lives have been destroyed as a result.”
She further elaborated on the risks posed by the internet and social media, acknowledging that people often share both necessary and unnecessary information online without realising the long-term implications. The Prime Minister warned that once false information spreads, it becomes incredibly difficult to retract.
“The spread of false information weakens public trust in the information provided by the media, and this is extremely dangerous for a society. For the sustainability of a society, it is essential to maintain trust among citizens and trust in the institutions that influence people’s lives. Only through trust can we safeguard the sustainability, continuity, and security of a society.”
Prime Minister Amarasuriya expressed concern that, as misinformation has spread, it has led to a growing lack of faith in leadership and institutions. “Today, we no longer have confidence in our leaders. We do not even trust elders. There is doubt about whether the news we receive can be trusted. When credibility weakens within a society, it can push that society into crisis,” she said.
The Prime Minister called for the cultivation of a culture that strengthens trust in leadership and elders, while promoting an awareness of reliable sources of information. She reminded the media professionals in the room that they bear a significant responsibility in maintaining the integrity of the information they present.
“Just like the senior professionals we honoured today, you too may one day enter this field. However, there is a vast difference between the era in which they entered the profession and the era you will enter. You will carry a unique responsibility to strengthen the credibility of the media and to stand firmly behind the information you present.”
Prime Minister Amarasuriya also emphasised the importance of critical thinking and media literacy, urging that these concepts be incorporated into educational reforms. She said, “It is essential that our student generation is equipped with the skills to distinguish between truth and falsehood. Digital literacy and media literacy must become core elements of our educational framework.”
In conclusion, she reiterated that all citizens, especially in today’s digital age, have a responsibility to carefully evaluate the truthfulness of the information they share and consume. “Before you share anything on the internet or social media, think about its accuracy and the potential consequences,” she urged.
Sri Lanka Calls for Immediate De-escalation Amid Rising Tensions in the Middle East
March 15, Colombo (LNW): Sri Lanka has expressed grave concern over the intensifying crisis in the Middle East and West Asia, which poses a significant threat to civilians and regional stability.
In a statement, the Ministry of Foreign Affairs condemned the increasing violence and expressed sorrow over the mounting civilian casualties. The government reaffirmed its strong opposition to attacks on innocent civilians and infrastructure.
The Ministry emphasised that the protection of civilian life is a fundamental principle of international humanitarian law, calling for all parties involved to prioritise the safety and well-being of non-combatants.
“We stand firm in our commitment to the sanctity of human life and upholding global peace. The government is closely monitoring developments, in view of the grave humanitarian crisis and the direct impact on the global economy and international trade with repercussions for all countries,” the statement read.
Sri Lanka reiterated the importance of adhering to the principles of the United Nations Charter, particularly the prohibition of the use of force against the sovereignty or political independence of any state.
As a firm supporter of international law and the territorial integrity of nations, Sri Lanka urged all parties to exercise maximum restraint. The Ministry called for a return to diplomatic negotiations to prevent further escalation of the conflict, which poses a severe threat to peace and security not only in the region but across the globe.
In conclusion, Sri Lanka appealed to all concerned parties to engage in meaningful dialogue and take concrete steps towards de-escalation, underscoring the need to address the underlying causes of the conflict to restore peace and stability.
Ship Carrying 35,000 MT of Fuel to Arrive Tomorrow as Part of Ongoing Supply Efforts
March 15, Colombo (LNW): A fuel shipment weighing 35,000 metric tonnes is set to dock in Sri Lanka tomorrow, carrying a vital mix of petrol and diesel to bolster the nation’s fuel reserves.
The cargo, managed by the Ceylon Petroleum Corporation (CEYPETCO), forms part of a series of shipments aimed at meeting the country’s fuel needs in the coming weeks.
According to CEYPETCO Chairman D.A. Rajakaruna, this delivery is the first of several, with three additional fuel shipments expected to arrive before the end of the month.
These deliveries are crucial to ensuring uninterrupted fuel supply across Sri Lanka, especially with demand expected to rise in the lead-up to the festive season.
Rajakaruna also confirmed that orders for the fuel required to meet demand through to the end of April have already been placed. The CEYPETCO will be sourcing these supplies at prevailing market prices at the time of unloading, ensuring that costs reflect the latest market conditions.
All of the incoming shipments, including the one arriving tomorrow, are being imported from India and Singapore, key suppliers of fuel to Sri Lanka.
No Price Hikes for Rice Expected During Upcoming Festive Season
March 15, Colombo (LNW): The National Cooperative Wholesale Establishment (NCWE) has reassured the public that rice prices will remain stable during the upcoming festive season.
The organisation’s Chairman, Kosala Wilbawa, confirmed that the government has sufficient stockpiles to meet the expected demand for rice during this period, alleviating concerns over potential price increases.
Trade, Commerce, Food Security, and Cooperative Development Minister Wasantha Samarasinghe added that the Paddy Marketing Board has already begun releasing 50,000 metric tonnes of rice into the market to ensure steady supply.
Speaking during a visit to government rice reserves in Marandagahamula, the Minister highlighted that these stocks were sourced during the previous Yala season through a government-backed initiative, which saw paddy being bought from local farmers at guaranteed prices.
In an effort to efficiently distribute the rice across the nation, the NCWE is working closely with retail outlets, cooperatives, and Lanka Sathosa stores, ensuring that rice reaches the public without disruption. On a daily basis, over 300 metric tonnes of rice are being processed and distributed to maintain a consistent supply throughout the country.
Looking ahead, Minister Samarasinghe also revealed that the government intends to purchase over 100,000 metric tonnes of paddy during the current Maha season, as part of efforts to bolster national food security and maintain a stable food supply for the country.
Heat Advisory Issued for Several Regions amidst Rising Temperatures Across Sri Lanka
March 15, Colombo (LNW): The Department of Meteorology has issued a public advisory warning that elevated heat levels are expected to affect several parts of the country today, with the heat index likely to reach cautionary levels in multiple districts.
According to meteorologists, the heat index—which reflects how hot the weather feels to the human body when humidity is taken into account—may rise to levels that could cause discomfort or mild health effects, particularly for those engaged in outdoor activities for prolonged periods.
The advisory covers the Western Province, Sabaragamuwa Province, Southern Province, and North Western Province, along with several districts including Monaragala, Mannar, Anuradhapura, and Vavuniya.
Health officials have advised residents in these areas to stay hydrated, limit direct exposure to the sun during the hottest hours of the day, and take extra precautions for children, the elderly and individuals with health conditions.
Despite the prevailing heat, the Meteorology Department also indicated that weather conditions could change tomorrow. Forecasts suggest that showers or thundershowers may develop after 2.00 p.m. in parts of the Central Province, Uva Province, Western Province, Sabaragamuwa Province, and North Western Province.
Isolated evening rainfall is also expected in districts such as Galle, Matara, Mannar, and Anuradhapura, which could provide temporary relief from the current heat.
Authorities have encouraged the public to remain alert to weather updates and follow safety guidance as conditions evolve over the coming days.
Fuel Not Issued to Cans or Bottles Under New QR System as Nationwide Distribution Begins
By: Isuru Parakrama
March 15, Colombo (LNW): Authorities have confirmed that petrol and diesel will no longer be issued to cans, bottles or other containers under the country’s newly introduced QR-based fuel distribution programme, which came into effect across Sri Lanka this morning.
According to the Managing Director of the Ceylon Petroleum Corporation (CEYPETCO), Mayura Neththikumarage, the implementation of the system has not resulted in a fuel shortage. He stated that supplies remain stable and that the new mechanism is primarily intended to regulate distribution and prevent misuse.
Speaking to the media, Neththikumarage also revealed that preliminary discussions have already taken place with several international partners, including India and China, regarding the possibility of obtaining additional fuel stocks should an urgent requirement arise. He described the talks as productive and said the country would be able to secure supplies if necessary.
Fuel distribution through the QR system officially commenced at 6.00 a.m. today (15). Priority during the initial stage has been given to motorists who had previously registered and obtained QR codes along with their corresponding vehicle and mobile phone details. Officials confirmed that QR codes issued earlier remain valid and can still be used under the updated system.
Motorists who have not yet registered are able to obtain their QR codes by completing the registration process through the government’s online fuel portal.
Meanwhile, Kumara Rajapaksha, Chairman of the Lanka Filling Station Owners Association, stated that fuel stations across the island successfully integrated the QR platform within a few hours of the programme’s launch. By around 8.00 to 9.00 a.m., most stations were reportedly operating fully under the new system.
Rajapaksha stressed that, under the current regulations, fuel will only be dispensed directly into registered vehicles. Filling stations have been instructed not to issue fuel to containers such as cans or bottles even if a valid QR code is presented.
He further noted that motorists must arrive at the filling station in the same vehicle that is registered under the QR code. Attempts to obtain fuel using another individual’s QR code or by arriving in a different vehicle will not be permitted.
During the briefing, Rajapaksha acknowledged that some complaints had been received from individuals who recently purchased vehicles but have not yet been able to obtain a QR code. He expressed confidence that the government would address the issue promptly to ensure that new vehicle owners are not unfairly inconvenienced.
Although several stations experienced minor technical issues while integrating the system early in the morning, he said operations have since stabilised and fuel distribution is now proceeding without major disruptions.
Rajapaksha also pointed out that filling station owners and pump attendants bear significant responsibility in implementing the new regulations, as they must ensure compliance while dealing directly with customers. He therefore appealed to the public to cooperate by arriving at stations with their registered vehicles and valid QR codes to help maintain an orderly and efficient fuel distribution process.