October 11, Colombo (LNW): The Meteorological Department has forecast a spell of unsettled weather across various parts of the island today, particularly in the afternoon and evening hours.
A combination of showers and thundershowers is anticipated in the Eastern, Uva, and Central provinces, as well as in parts of the Polonnaruwa and Hambantota districts, with rainfall activity likely to intensify after 1.00 p.m.
In particular, residents of the Uva province may experience fairly heavy rainfall, with some areas expected to receive over 50 millimetres. While the central and eastern regions are expected to bear the brunt of this weather system, isolated thundershowers may also develop in other parts of the country later in the day.
The morning hours could see showers developing along the western and southern coastal belts. In addition, misty conditions are forecast for certain locations within the Sabaragamuwa, Central, and Uva provinces during the early part of the day, potentially affecting visibility and travel.
Authorities are urging the public to remain vigilant and to take necessary safety measures, particularly during periods of thunderstorm activity. Localised gusty winds and lightning strikes are possible during these storms, posing risks to both individuals and property.
Fairly heavy showers expected across island (Oct 11)
Breaking News: Venezuelan Politician Maria Corina Machado Awarded 2025 Nobel Peace Prize
Venezuelan opposition leader Maria Corina Machado has been awarded the 2025 Nobel Peace Prize, recognized for her relentless efforts to defend democracy and human rights in Venezuela.
Announcing the award in Oslo, the Nobel Committee hailed Machado as “one of the most extraordinary examples of courage in Latin America in recent times.”
Committee chair Jørgen Watne Frydnes emphasized that democratic activism in Venezuela remains dangerous, yet Machado has stood unwaveringly for free and fair elections for more than two decades, describing her advocacy as “a choice of ballots over bullets.”
“The Nobel Peace Prize for 2025 goes to a woman who keeps the flame of democracy going, amidst a growing darkness,” Frydnes declared.
Machado, a long-standing critic of Venezuela’s authoritarian government, has become a unifying figure in the country’s opposition movement. The committee praised her “tireless work promoting democratic rights for the people of Venezuela” and her leadership in pursuing “a just and peaceful transition from dictatorship to democracy.”
The award also comes at a time when democratic values face increasing threats globally. The committee stressed that Machado embodies the core of democracy—defending principles of popular rule even when disagreements remain.
“At a time when democracy is under threat, it is more important than ever to defend this common ground,” the chairman added.
The announcement followed speculation surrounding other high-profile candidates. Notably, U.S. President Donald Trump had mounted a public campaign for the prize, though nominations closed at the beginning of his second term earlier this year.
With this honor, Machado joins a prestigious list of Nobel laureates and becomes a powerful symbol of resistance and hope for Venezuela’s democratic future.
Ban the Bag? Lessons from Britain—and Sri Lanka’s Reality Check
By Roger Srivasan
Introduction
I was born in the Northern part of Sri Lanka, but my childhood and much of my life unfolded in the United Kingdom. For half a century I have lived in a society where the environment has steadily been pushed higher up the public agenda. I remember vividly the day the UK government, following Wales, Northern Ireland, and Scotland, decided to charge for plastic carrier bags. What seemed like a small 5-pence nudge at the till quickly transformed public behaviour. Within a few years, plastic bags on UK beaches had fallen by 80 per cent. Now Sri Lanka is embarking on a similar journey, banning single-use carrier bags. The instinct is right.
The question is: can we replicate the British success story, or will our own economic and social realities blunt the impact?
What Britain Did Right
The UK’s approach was gradual and carefully staged. Wales led the way in October 2011 with a 5p levy.
Northern Ireland followed in 2013, Scotland in 2014, and England in 2015. By 2021, the charge doubled to 10p and was extended to all retailers. The results were dramatic: fewer plastic bags in circulation, cleaner beaches, and a shift in mindset. Why did it work so smoothly? Three factors mattered:
1. Cars and convenience – most shoppers drove, storing “bags for life” in their car boots.
2. Alternatives at scale – supermarkets offered reusable options, reminders at tills, and visible messaging.
3. Affluence and awareness– the public could absorb a small fee and embraced the environmental argument. In short, Britain harnessed small incentives to achieve a big cultural change.
Europe: Levy or Ban
The EU acted through Directive 2015/720, requiring member states to cut consumption of lightweight carrier bags. Some chose levies, others bans. Ireland pioneered the levy in 2002, slashing usage almost overnight.
France phased in bans in 2016–2017. Germany introduced a nationwide ban on lightweight bags from 2022.
The lesson? Whether by fee or outright prohibition, the direction is unmistakable: fewer disposables, more re-use.
The Anglosphere Experience
Across the English-speaking world, the pattern is varied but unmistakable. – United States: With no federal law, individual states took the lead. California, New York, New Jersey, Washington, Oregon, Maine, Vermont, Connecticut, Delaware, Colorado, and Rhode Island now restrict or ban bags. California goes further: from 2026 all plastic grocery bags, even thick “reusables,” will be outlawed. – Canada: The federal government introduced a ban in 2022, now under legal challenge. A court stay keeps the rules in effect while the appeal proceeds. – Australia: Every state and territory has banned lightweight plastic bags. Some, like South Australia, are widening restrictions to cover more single-use plastics.
Why Sri Lanka Is Different
Sri Lanka faces unique obstacles. The average household here does not mirror the British suburban shopper with a car boot full of sturdy bags. Many rely on buses, trains, three-wheelers, or walking. Carrying groceries in heavy reusable bags is a far greater inconvenience. Economic constraints deepen the dilemma. A reusable cloth or jute bag costs more than a flimsy polythene one. For lower-income families, even small costs bite hard. Meanwhile, our retail landscape is fragmented: modern supermarkets, wet markets, and thousands of kades. Enforcing a uniform ban across this patchwork is daunting.
The Case for Action
Yet the environmental argument is overwhelming:
– Urban flooding: Blocked drains choked with polythene make monsoon deluges more destructive.
– Health: Burning discarded plastic releases toxic fumes in residential areas.
– Tourism and coasts: Marine litter damages fisheries and our international image. We cannot afford inaction. But we must tailor solutions to our realities.
A Sri Lankan Way Forward
If Sri Lanka is to succeed, the ban cannot stand alone. It must be paired with innovation and practicality:
1.Start with a charge, then escalate – follow the UK’s path, giving people time to adapt.
2. Subsidise reusable bags – make cloth or jute carriers cheap, or free at the start, especially for low-income households.
3. Baglibraries and rentals – supermarkets and kades could lend bags for a deposit, refundable on return.
4.Foldable pocket bags – sell compact cloth bags at bus stands and railway kiosks.
5. Market-specific solutions– for wet markets, reusable crates or woven sacks rented out per trip.
6. Unified enforcement – clear, simple rules for supermarkets and kades to avoid confusion or unfair penalties.
Conclusion: Worthy, but Adapted
The ban on plastic bags is a worthy initiative. It signals responsibility, protects our environment, and reminds us that small choices carry large consequences. But Sri Lanka must adapt the model. We cannot simply import the UK approach and expect identical results. In Britain, affluence, car culture, and retail centralisation smoothed the path. Here, success will depend on education, affordability, and localised alternatives. If we design the transition wisely, Sri Lanka can reap the same environmental rewards without burdening its people. The lesson is clear: ban the bag, but bend the policy to Sri Lankan realities.
Sidebar: Key Global Milestones

Dhammika part sells ComBank stake for Rs. 5.5 b
Business leader Dhammika Perera yesterday part sold his stake in Commercial Bank for Rs. 5.5 billion.
The market saw 26.55 million voting shares of Commercial Bank done at Rs. 195 per share via 39 crossings. Overall, Commercial Bank saw 29 million shares traded for Rs. 5.68 billion, accounting for 43% of a whopping
Rs. 13.3 billion turnover.
Commercial Bank voting share closed the day at Rs. 203.25, up by 3% or Rs. 6.25.
The stake in Commercial Bank is not strategic but is part of Dhammika’s trading portfolio.
As at end June, Dhammika held 39,226,489 million voting shares amounting to 2.5% stake and was the 11th largest shareholder. End of last year Dhammika was the 8th largest shareholder with 3.66% stake amounting to 55.2 million voting shares.
Dhammika’s strategic banking sector interests are Sampath Bank and Pan Asia Bank.
DAILY FT
Colombo Port Achieves Record Profit in 2025 amid Strategic Expansion
The Port of Colombo has reported a record net profit of Rs. 32.2 billion for the first eight months of 2025, marking a 71% increase from Rs. 18.9 billion during the same period in 2024. This surge surpasses the projected Rs. 21 billion target by Rs. 11 billion, underscoring the port’s robust performance amid ongoing infrastructure developments and enhanced operational efficiencies.
According to the Sri Lanka Ports Authority (SLPA), the profit growth is attributed to several key factors, including a 5.7% year-on-year increase in container throughput, improved cost management, and the completion of major infrastructure projects such as the East Container Terminal (ECT) and the Jaya Container Terminal.
These developments have significantly boosted the port’s capacity and operational capabilities.The ECT, with an annual capacity of 2.4 million TEUs, is now operational, contributing to the port’s enhanced efficiency. Phase two of the ECT is expected to commence operations by the end of the year, further augmenting capacity.
Additionally, the fifth phase of the Jaya Container Terminal is on schedule for completion within 2025, which will further increase capacity.
In terms of container traffic, the port handled 5.43 million TEUs from January to August 2025, up from 5.14 million TEUs during the same period in 2024. Transshipment volumes rose by 3.8% to 4.35 million TEUs, while domestic container movements saw a significant jump of 13.7% to 858,324 TEUs.
Looking ahead, the SLPA plans to utilize the profits to implement strategic initiatives aimed at positioning the Colombo Port as a leading regional transshipment hub. These initiatives include further expansion of terminal facilities, adoption of advanced technologies, and enhancement of logistics connectivity to meet the growing demand in global trade.
The SLPA’s proactive approach in infrastructure development and operational optimization has not only bolstered the port’s financial performance but also reinforced its strategic importance in the global maritime industry. As the port continues to expand and modernize, it is poised to play a pivotal role in enhancing Sri Lanka’s position as a key player in regional and international trade.
CEB’s Proposed 6.8% Tariff Hike: Justified Reform or Unwarranted Burden?
Sri Lanka’s state-run Ceylon Electricity Board (CEB) has proposed a 6.8% increase in electricity tariffs, citing the need to align with a cost-reflective pricing formula agreed upon with the International Monetary Fund (IMF). This proposal, currently under review by the Public Utilities Commission of Sri Lanka (PUCSL), has sparked debate among stakeholders.
Financial Performance amidst Proposed Hike
Despite the tariff hike proposal, CEB’s recent financial performance raises questions about the necessity of such an increase. In the second quarter of 2025, the CEB reported a net profit of LKR 5.31 billion, a significant improvement from the LKR 34.54 billion profit in the same period the previous year. This turnaround is attributed to a combination of factors, including tariff adjustments and operational efficiencies.
However, the first quarter of 2025 saw a net loss of LKR 16.93 billion, primarily due to reduced revenues and increased costs associated with thermal energy generation. This fluctuation underscores the challenges faced by the CEB in balancing operational costs and revenue eneration.
Cost-Reflective Pricing and IMF Conditions
The IMF has emphasized the importance of implementing cost-reflective electricity pricing to eliminate ad-hoc hikes and shield consumers from inefficiencies. The proposed 6.8% increase is in line with this recommendation, aiming to ensure that electricity tariffs accurately reflect the cost of production and distribution.
Public Consultation and Stakeholder Concerns
The PUCSL has conducted public consultations across various provinces to gather feedback on the proposed tariff revision. Approximately 500 individuals participated in these sessions, expressing concerns about the potential impact of the tariff increase on consumers, particularly those in lower-income brackets.
Conclusion
While the IMF’s push for cost-reflective pricing aims to promote transparency and financial sustainability, the CEB’s recent profitability raises questions about the immediate need for a tariff hike. Stakeholders urge a comprehensive evaluation of the CEB’s financial health and operational efficiencies before implementing further increases in electricity tariffs. The PUCSL’s upcoming decision will be crucial in balancing the objectives of financial sustainability and consumer protection.
IMF Reaches Staff-Level Agreement with Sri Lanka on Fifth Review
The International Monetary Fund (IMF) and Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the Fifth Review of the country’s reform program under the IMF’s Extended Fund Facility (EFF). Upon approval by the IMF Executive Board, Sri Lanka will gain access to approximately US$347 million in financing, adding to the total support already received under the program.
The IMF acknowledged that the reforms implemented by Sri Lanka have continued to support economic recovery. Inflation is returning to target levels, foreign reserves are accumulating, real GDP growth remains strong, and revenue mobilization has outperformed expectations, the Fund noted. Advancing these reforms is considered essential for maintaining macroeconomic stability, sustaining recovery, and strengthening resilience to external shocks amid global uncertainties.
An IMF mission, led by Evan Papageorgiou, visited Sri Lanka from September 24 to October 9, 2025, to review recent macroeconomic developments and assess progress in implementing economic and financial policies under the EFF arrangement. The mission engaged with key officials, including President Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, Finance Minister, Central Bank Governor Dr. P. Nandalal Weerasinghe, and other senior government and private sector representatives. Meetings also included civil society organizations, parliamentarians, and development partners.
Mission Chief Papageorgiou highlighted that the EFF arrangement, approved by the IMF Executive Board in March 2023 for SDR 2.3 billion (about US$3 billion), continues to produce positive outcomes. The staff-level agreement now awaits formal Board approval, contingent on Parliamentary approval of the 2026 Appropriation Bill and the completion of the financing assurances review to confirm multilateral partners’ contributions and assess progress on debt restructuring.
According to the IMF, Sri Lanka’s economy grew by 4.8% year-on-year in the first half of 2025, with inflation stabilizing at 1.5% in September. Gross official reserves reached US$6.1 billion by end-September 2025, while strong fiscal performance has been supported by revenue from motor vehicle imports. Debt restructuring is nearing completion, and the IMF emphasized the importance of continuing reforms to safeguard fiscal and macroeconomic stability.
The Fund underlined the need for continued efforts in several areas, including strengthening tax compliance, broadening the tax base, enhancing public financial management, maintaining cost-recovery energy pricing, and improving governance of state-owned enterprises (SOEs). Protecting vulnerable populations through targeted welfare programs and finalizing bilateral debt agreements are also considered critical for restoring debt sustainability and boosting investor confidence.
Monetary policy must remain data-driven, with central bank independence protected, and external buffers rebuilt through reserve accumulation. The IMF further stressed the importance of governance reforms, anti-corruption measures, digitalization of revenue administration, and strengthening public procurement to enhance transparency and support sustainable growth.
Papageorgiou concluded by thanking Sri Lankan authorities for their collaboration during the mission, including visits to the Central and Uva provinces, reaffirming the IMF’s commitment to supporting the country in achieving strong and sustainable economic growth.
FDI Boon or Bookkeeping Mirage? BOI’s $787 Million Claim Faces Credibility Test
Sri Lanka’s Board of Investment (BOI) has claimed that the country secured USD 787 million in foreign direct investment (FDI) during the first nine months of 2025 a figure that, on close examination, appears inflated and methodologically inconsistent with the Central Bank’s balance-of-payments (BoP) data and the nation’s economic realities.
An independent review of Central Bank BoP tables and CEIC quarterly data shows that net FDI inflows for January-September 2024 measured under internationally accepted IMF-BPM6 accounting standards were only around USD 300 to 320 million.
Given the country’s unchanged investment climate, policy uncertainty, and limited project pipeline since late 2024, a 2.5-fold increase within one year is implausible without corresponding evidence of large-scale project disbursements or foreign-funded industrial ventures. No such evidence has been publicly documented.
Discrepancies in BOI Accounting
The BOI’s headline figure lumps together foreign equity, reinvested earnings, intra-company loans, and foreign commercial borrowings of BOI-registered firms. By treating internal financing and retained profits of existing investors as “new FDI,” the BOI effectively pads its total with domestic reinvestment and inter-company debt, rather than recording fresh cross-border capital inflows.
Such inclusion distorts the real FDI picture, since these funds neither add foreign exchange reserves nor represent new foreign ownership in local enterprises. In contrast, the Central Bank’s BoP methodology isolates only genuine cross-border capital contributions and profit reinvestments consistent with global standards.
Under that framework, Sri Lanka’s net inflows have rarely exceeded USD 1 billion annually in recent years and typically average below 1 percent of GDP one of the lowest ratios in Asia.
Lack of Transparency and Verification
The BOI’s refusal to publish a category-wise breakdown for its USD 787 million claim further undermines confidence. Without specifying how much was equity, reinvested earnings, or loans, it is impossible for analysts or Parliament to verify the claim’s validity.
Moreover, no matching rise in project approvals, construction starts, or foreign remittances has been reflected in parallel economic indicators such as imports of investment goods or employment data.
Independent Assessment
Given the CBSL’s BoP-based net inflow estimate of only USD 300–320 million for the comparable period in 2024, a realistic projection for 2025 factoring in modest improvement in investor sentiment but persistent structural barriers would be in the USD 400–500 million range at best. That still marks incremental progress, but falls far short of the BOI’s USD 787 million claim.
Conclusion: Numbers in Search of Credibility
On balance, available macroeconomic evidence strongly suggests that the BOI’s reported USD 787 million FDI inflow is overstated. The figure appears to reflect accounting aggregation rather than a true surge in foreign capital. Until the BOI releases audited, disaggregated data distinguishing new cross-border equity from internal re investments and loans, its FDI announcements should be treated with caution.
For policymakers and investors alike, transparency not political optics must define Sri Lanka’s investment reporting if the country is serious about restoring credibility in global capital markets.
Provincial Council Elections to Be Held Within Next Year
Foreign Affairs Minister Vijitha Herath announced in Parliament yesterday that the Government plans to hold the long-delayed Provincial Council Elections within the next year.
“We will decide on the election once the ongoing delimitation process is completed. Afterwards, a decision will be made on whether the election will be held under the proportional representation system or a mixed electoral system,” the Minister stated.
He added that the final decision rests with Parliament, emphasizing that the necessary legal and administrative steps will follow the completion of the delimitation process.
Minister Herath made these remarks in response to questions raised by opposition MPs Jeevan Thondaman and S. Rasamanickam regarding the timeline for holding Provincial Council elections.
Government Committed to Resolving Human Rights Issues Through Domestic Mechanisms – Foreign Minister Vijitha Herath
Foreign Affairs Minister Vijitha Herath told Parliament yesterday that for the past 16 years, resolutions against Sri Lanka have been passed at the United Nations Human Rights Council (UNHRC) due to the failure of previous governments to resolve the national question and address human rights concerns locally.
He said successive governments had politicised national and human rights issues for short-term political gain, which ultimately led to the internationalisation of Sri Lanka’s human rights situation.
“By the time this Government took office in 2024, the human rights issue had already been internationalised and made more complex,” Minister Herath noted.
Tracing the history of UNHRC resolutions on Sri Lanka, the Minister explained that both the Human Rights Commission (the predecessor to the current Council) and the Human Rights Council have adopted multiple resolutions on Sri Lanka since the 1980s — including 11 resolutions since 2009 alone.
He said that calling for votes at the Council, as done by previous administrations, was “a futile exercise” that wasted public resources, knowing the outcome would not change.
“Instead of resolving these issues locally and building unity, previous governments engaged in divisive racial and religious politics, further isolating the country internationally,” he added.
Minister Herath pointed out that the 2009 Geneva resolution called for a sustainable national solution to address the grievances of all communities, but this was never implemented. Subsequent resolutions in 2012 and 2013 urged the implementation of the Lessons Learned and Reconciliation Commission (LLRC) recommendations, but those, too, were ignored.
“If those recommendations had been implemented through a national mechanism, there would be no Geneva resolutions today,” he observed.
He emphasised that the current Government under President Anura Kumara Dissanayake, which came to power in October 2024, is committed to eradicating poverty and corruption while building a united, rights-respecting nation.
Engagement with the UNHRC
Minister Herath also briefed Parliament on his recent engagements with the UN Human Rights Council in Geneva. He said that during the 60th Human Rights Session earlier this year, the Council members took note of Sri Lanka’s domestic initiatives to protect the political and economic rights of all citizens and promote reconciliation.
He highlighted that the visit of UN High Commissioner for Human Rights Volker Türk to Sri Lanka in June 2025 — the first such visit in nine years — resulted in positive observations about the country’s progress.
“The High Commissioner commended the genuine openness of the Sri Lankan Government, the progressive change in society, and the steps taken to address issues through domestic mechanisms,” the Minister said, adding that the High Commissioner’s report to the Council in September reflected these positive developments.
Domestic Reforms and Human Rights
Minister Herath reaffirmed that the Government’s goal is to strengthen national institutions and pursue truth and reconciliation through local processes, rather than international mechanisms such as the Sri Lanka Accountability Project established under Resolution 46/1 (2021).
“We have clearly stated that Sri Lanka will not accept non-domestic mechanisms,” he said. “Our aim is to resolve these issues through our own independent processes and institutions.”
He announced several upcoming reforms, including:
- The Truth and Reconciliation Commission Act, to be presented to Parliament soon.
- The establishment of an independent Public Prosecutor’s Office.
- The repeal of the Prevention of Terrorism Act (PTA) and introduction of a new law that balances counterterrorism and human rights.
- Amendments to the Security of Online Systems Act to better protect citizens’ rights.
Herath stressed that these initiatives are not intended to “impress Geneva” but arise from the Government’s genuine commitment to human rights and justice for all victims.
“We are not targeting military personnel or any section of the population,” he clarified. “Our responsibility is to protect human rights, ensure the rule of law, build unity, and prevent the recurrence of conflict.”
Geneva Resolution of October 2025
Referring to the resolution on Sri Lanka adopted without a vote on October 6, Herath said the Government decided not to call for a vote, in keeping with its policy against “futile demonstrations.”
He noted that the latest resolution was more balanced than previous ones, as it recognised Sri Lanka’s democratic transformation, economic recovery efforts, anti-corruption measures, and reconciliation initiatives.
However, he reiterated that the Government rejects the continuation of the Sri Lanka Accountability Project, as it remains an external mechanism.
The Minister concluded that Sri Lanka’s domestic approach has earned growing recognition from member states, with 43 countries at the September 8 UNHRC dialogue expressing appreciation for the Government’s steps toward reconciliation and human rights protection.
“Protecting the human rights of our people is not a matter for debate — it is our duty and responsibility as representatives of the people,” he said.
“Our vision is of a peaceful, prosperous, and united Sri Lanka where all citizens can live in freedom and dignity. We are committed to making this dream a reality.”