Sri Lanka’s official reserve assets declined by 3.5% to USD 7,019 million in March 2026, down from USD 7,270 million recorded in February, according to the Central Bank of Sri Lanka (CBSL).
The total reserves figure includes proceeds from the currency swap arrangement with the People’s Bank of China, the CBSL noted.
The renovated Central Bus Terminal in Fort reopened to the public today, Wednesday (08), following the completion of the first phase of refurbishment under the Clean Sri Lanka programme.
The upgrade includes improvements to existing buildings, the establishment of a new information centre, and enhanced sanitation facilities aimed at improving convenience for commuters.
Authorities have also introduced a designated external queuing area for buses, along with measures to upgrade the overall environment of the terminal.
The Ceylon Electricity Board (CEB) will provide electricity for Sinhala and Tamil New Year festivals and related events across the country from Wednesday (15) to Sunday (19), subject to payment, Minister Vijitha Herath announced.
Speaking at the weekly Cabinet decisions briefing held on Tuesday (07), the Minister said organisers can obtain electricity for festive events by making the relevant payments to the CEB.
He noted that arrangements have already been made to facilitate power supply for a range of activities, including New Year festivals and musical shows planned during the holiday period.
“Electricity is essential for these celebrations, but it should be used sparingly during the season,” Herath said, urging organisers to ensure efficient energy consumption.
The Minister added that the initiative aims to support cultural festivities while promoting responsible use of electricity during the holiday season.
The Consumer Affairs Authority (CAA) has announced that steps have been taken to ensure an uninterrupted supply of Laugfs gas to consumers during the festive season, starting today (April 8).
A spokesperson for the CAA stated that, following instructions from the Minister of Trade, Laugfs Gas Company has been directed to comply with all relevant legal requirements to maintain steady distribution.
Earlier, Laugfs Gas confirmed that a shipment carrying 7,000 metric tons of gas arrived at the Hambantota Port on April 6. The company also stated that distribution of this stock to consumers will commence from today.
Meanwhile, CAA Director Asela Bandara said that special raids and investigations will be carried out during the festive period to monitor market activities. He warned that strict legal action will be taken against traders found violating regulations.
An adjournment motion on the current situation in Sri Lanka, moved by the government, is scheduled to be debated in Parliament today (08).
The debate is set to take place from 11.00 a.m. to 5.30 p.m.
Parliament will convene at 9.30 a.m., in line with decisions taken at the Committee on Parliamentary Business meeting held yesterday under the chairmanship of Speaker Dr. Jagath Wickramaratne.
According to the agreed schedule, the sitting will begin with Business of Parliament from 9.30 a.m. to 10.00 a.m., in accordance with Standing Orders 22(1) to (6). This will be followed by Questions for Oral Answers from 10.00 a.m. to 10.30 a.m.
The time from 10.30 a.m. to 11.00 a.m. has been allocated for Questions under Standing Order 27(2), after which the adjournment debate will commence.
Lanka IOC PLC (LIOC) has announced a price increase on several fuel categories, effective today (08).
According to the company, the price of Super Diesel has been increased by Rs. 18, bringing the new retail price to Rs. 600 per litre.
LIOC has also revised the prices of its premium fuel products. The updated prices are as follows:
The latest revision reflects adjustments in the company’s premium fuel segment, with Super Diesel recording a notable increase.
Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Southern and North-western provinces and in Kandy, Nuwara-Eliya and Monaragala districts after 1.00 p.m.
A few showers may occur in coastal areas of Western province and in Galle and Matara districts in the morning.
Misty conditions can be expected at some places in Central, Sabaragamuwa and Uva provinces and in Ampara and Polonnaruwa districts during the early hours of the morning.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year. The nearest areas of Sri Lanka over which the sun is overhead today (08th) are Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon.
By: Staff Writer
April 07, Colombo (LNW): Sri Lanka’s 2026 Governance Action Plan presents a tightly structured reform timeline aligned almost entirely with benchmarks set under the Extended Fund Facility of the International Monetary Fund. While the plan signals policy discipline and adherence to international expectations, critics argue it reflects a compliance-driven approach rather than a domestically crafted strategy for long-term transformation under the Janatha Vimukthi Peramuna-led National People’s Power government.
At its core, the plan prioritises structural reforms in procurement, State-Owned Enterprises (SOEs), and financial governance. The proposed Public Procurement Bill, scheduled for enactment by August 2026, aims to standardise and improve transparency in government contracting. This is reinforced by continued publication of high-value contracts and tax exemptions, a move widely seen as enhancing fiscal accountability and public trust.
Similarly, SOE restructuring anchored by the Public Commercial Business Management Bill targets improved efficiency through the creation of a central holding company. By October 2026, key entities are expected to be consolidated under this framework, potentially reducing fiscal burdens and inefficiencies that have historically plagued state enterprises.
The Employees’ Provident Fund (EPF) reforms also stand out, with a comprehensive review and policy recommendations due by September. These steps could strengthen governance and safeguard contributors’ funds, addressing longstanding concerns about transparency and investment practices.
However, the plan’s strengths also reveal its limitations. Nearly every reform milestone mirrors IMF technical guidance, raising concerns that the government has prioritised compliance over innovation. There is little evidence of original policy thinking tailored to Sri Lanka’s unique socio-economic context. Instead, the framework appears to replicate externally prescribed solutions without adapting them to local institutional realities.
For instance, while digitalisation initiatives such as the electronic procurement platform and land information systems—are commendable, their extended timelines into 2027 and 2028 suggest a lack of urgency in leveraging technology for immediate governance gains. Likewise, the introduction of a public-private partnership law and asset management legislation follows standard global templates, offering limited novelty in approach.
Anti-corruption measures, including the expansion of the Commission to Investigate Allegations of Bribery or Corruption and the implementation of a Proceeds of Crime framework, are important steps forward. Yet, their effectiveness will depend heavily on enforcement capacity rather than legislative intent—an area where past reforms have struggled.
Judicial improvements, such as additional commercial courts and enhanced case management, could ease systemic delays. Still, these reforms remain procedural and incremental, lacking a broader vision for justice sector transformation.
In sum, the 2026 Governance Action Plan demonstrates policy consistency and alignment with IMF conditions, which may stabilise macroeconomic fundamentals and reassure international stakeholders. However, its heavy reliance on externally driven frameworks underscores a deeper concern: the absence of bold, homegrown strategies to drive sustainable growth and institutional renewal. Without such innovation, the reforms risk being technically sound but strategically limited.
By: Staff Writer
April 07, Colombo (LNW): Sri Lanka’s Hambantota International Port (HIP) is undergoing a decisive transformation as shifting geopolitical tensions reshape global maritime trade routes in 2026. The ongoing US-Israel-Iran conflict has triggered a redirection of shipping traffic away from traditionally congested and risk-prone corridors in the Gulf region. In response, HIP has rapidly scaled its operational capabilities, positioning itself as a critical transshipment and logistics hub in the Indian Ocean.
Recent data indicates that HIP has increased its container yard capacity by 30 percent, a move aimed at absorbing higher cargo volumes. Additionally, the port has doubled its Roll-On/Roll-Off (RoRo) yard capacity, reflecting a surge in vehicle transshipment activity. Yard utilisation has reached historic highs, underscoring both the urgency and opportunity presented by current global disruptions.
Financially, HIP is showing signs of steady recovery and growth. Port revenues in early 2026 have reportedly increased by an estimated 18–22 percent year-on-year, driven primarily by higher vessel calls and expanded logistics services. Container handling volumes have crossed approximately 350,000 TEUs in the first quarter alone, marking a significant rise compared to previous years. Meanwhile, vehicle transshipment is projected to exceed 800,000 units annually if current trends persist.
The port’s strategic location just 10 nautical miles from the main East-West shipping lane remains its strongest competitive advantage. This proximity allows vessels to reroute with minimal deviation, saving both time and fuel costs. As security concerns escalate in the Gulf, shipping lines are increasingly prioritising such alternative ports that offer both safety and efficiency.
However, this rapid growth also brings operational challenges. Infrastructure strain, workforce demands, and the need for enhanced digital logistics systems are becoming more apparent. To sustain momentum, HIP must invest in automation technologies, improve customs clearance efficiency, and strengthen hinterland connectivity to facilitate faster cargo movement inland.
In conclusion, Hambantota International Port stands at a pivotal moment. The Gulf conflict has inadvertently accelerated its rise as a regional maritime hub. If managed strategically, HIP could transition from a secondary port into a central player in global shipping logistics, redefining Sri Lanka’s role in international trade.
By: Staff Writer
April 07, Colombo (LNW): Sri Lanka’s power sector is once again under strain as ongoing issues in coal procurement threaten electricity generation in the coming months. The state-owned Lanka Coal Company (LCC), responsible for supplying coal to the Norochcholai power plant, is attempting to recover from a controversial procurement cycle that resulted in the delivery of substandard coal. The consequences of that failure are now unfolding, with concerns mounting over potential power cuts as the country approaches periods of higher electricity demand.
The Norochcholai coal power plant, which contributes a significant share of the national grid’s base load, depends heavily on consistent, high-quality coal supplies. However, the previous tender process allowed relatively inexperienced suppliers to participate, with lenient eligibility criteria that required only 500,000 metric tonnes (MT) of supply experience and minimal exposure to higher-grade coal. This opened the door to quality inconsistencies, ultimately leading to shipments that did not meet required calorific standards.
Coal quality, measured by Gross Calorific Value (GCV), is critical for efficient power generation. When coal falls below the expected GCV threshold, more fuel is required to produce the same amount of electricity, increasing operational costs and reducing plant efficiency. In severe cases, poor-quality coal can damage equipment or force temporary shutdowns, directly affecting power supply stability.
The current situation suggests that Sri Lanka may face electricity shortages within the coming months if supply disruptions persist. With coal deliveries already impacted by earlier procurement missteps, the power sector has limited buffer capacity. Hydropower output remains uncertain due to fluctuating weather conditions, while thermal alternatives are both expensive and logistically constrained.
In response, LCC has introduced a new tender for 2.28 million MT of coal for the 2026–27 season, aiming to restore credibility and ensure supply reliability. However, this corrective action comes at a critical time, as immediate shortages cannot be quickly resolved through long-term procurement adjustments. The gap between policy reform and actual delivery may leave the country vulnerable in the short term.
Energy analysts warn that unless contingency measures are implemented such as securing emergency fuel supplies or optimizing existing generation scheduled power cuts may become unavoidable. The situation highlights systemic weaknesses in procurement oversight, contract enforcement, and risk management within Sri Lanka’s energy sector.
Ultimately, the coal procurement crisis is not just a logistical issue but a governance challenge. Ensuring transparency, accountability, and technical rigor in future tenders will be essential to prevent a repeat of the current predicament. As the country braces for potential power disruptions, the urgency of reform has never been clearer.
