A major new skyscraper project in central Colombo is highlighting growing confidence in Sri Lanka’s recovering property market, as developers move ahead with ambitious urban housing plans after the country’s economic turmoil.

Property giant John Keells Holdings has launched Vauxhall DSTRCT, a 60-storey residential tower along Vauxhall Street in Colombo 02. The development, introduced by its real estate arm John Keells Properties, marks the company’s first major property launch since the national financial crisis.

The strong initial response from buyers suggests renewed interest in apartment living in Colombo’s city centre. Developers confirmed that over 100 units were sold on the project’s opening day, indicating pent-up demand after several years of economic uncertainty.

Located near the commercial heart of Colombo and overlooking Beira Lake, the development is expected to attract professionals, expatriates and investors seeking centrally located homes close to business districts and urban amenities.

Chairman of John Keells Holdings, Krishan Balendra, said the project reflects confidence that Sri Lanka’s economy has begun stabilising after a prolonged period of financial stress.

He emphasised that the company had continued to complete its projects even during difficult periods, including the recent economic crisis, reinforcing its reputation for delivering large-scale developments.

The Vauxhall DSTRCT project will include apartments ranging from compact one-bedroom units to larger four-bedroom residences. Developers say the design focuses on modern urban lifestyles, with facilities such as fitness areas, recreational spaces and shared community zones.

In addition, the building will incorporate smart-technology features aimed at improving convenience, energy efficiency and security for residents. These systems build on technology first introduced in TRIZEN Colombo.

According to Nayana Mawilmada, President of Property and Leisure at John Keells Holdings, apartment living is becoming increasingly attractive in Colombo as the city’s urban landscape evolves.

With land availability in central Colombo shrinking, vertical housing developments are becoming an increasingly important part of urban planning.

He also pointed to a recent surge in the rental market, suggesting that investors are once again viewing Colombo apartments as a profitable asset class.

Over the past two decades, John Keells Properties has been responsible for several prominent residential developments including OnThree20, 7th Sense Residences and the residential towers at Cinnamon Life at City of Dreams Sri Lanka.

Industry observers say the launch of Vauxhall DSTRCT could signal a broader revival in Colombo’s real estate sector.

While economic risks remain, improved macroeconomic stability and rising demand for urban housing are encouraging developers to restart long-delayed projects.

If this trend continues, analysts believe Colombo’s skyline could see another wave of high-rise residential developments as Sri Lanka’s property market gradually regains momentum.

Sri Lanka’s fragile agricultural recovery could face a new setback as warnings emerge about a possible fertiliser shortage caused by policy inconsistency, weak institutional coordination, and delayed procurement decisions.

Farmers’ representatives say the Government’s current approach risks repeating the mistakes that triggered the country’s agricultural crisis in 2021, when sudden policy changes disrupted fertiliser supply chains and reduced crop yields nationwide.

The alarm has been raised by the National Agrarian Union, which argues that authorities are failing to secure adequate fertiliser supplies despite rising global uncertainties.

Union President Anuradha Tennakoon says official claims that Sri Lanka holds fertiliser stocks sufficient for two years do not reflect practical realities. He disputes statements made by Deputy Agriculture Minister Namal Karunarathne, who recently assured the public that fertiliser availability would not be a problem in the near future.

According to Tennakoon, the problem is not merely about quantity but also about storage conditions and supply reliability.

Chemical fertilisers such as urea degrade when stored for extended periods, particularly in tropical climates where humidity and temperature accelerate chemical changes.

“If fertiliser is stored too long, it can lose effectiveness,” he warned, adding that relying on ageing stocks could compromise agricultural productivity.

The dispute also exposes questions about the role of state institutions responsible for fertiliser distribution. Sri Lanka maintains three major government bodies tasked with managing supplies—the National Fertiliser Secretariat, Ceylon Fertiliser Company Limited, and Colombo Commercial Fertiliser Company Ltd.

However, critics claim these institutions have become largely administrative, while private companies dominate the actual import process.

Such dependence on private importers, they argue, limits government control over procurement costs and timing.

Meanwhile, global market conditions are becoming increasingly volatile. Fertiliser production is heavily concentrated in a few regions, particularly the Middle East. Countries such as Saudi Arabia, Iran, Qatar, and Egypt together account for nearly half of the world’s urea exports.

Rising geopolitical tensions in that region could disrupt supply chains and push global prices sharply higher. Analysts warn that if conflict escalates, fertiliser prices could increase by more than 200 percent.

For Sri Lankan farmers, the impact could be severe. Industry estimates suggest the price of a standard 50-kilogram bag of urea could rise to between Rs. 15,000 and Rs. 20,000 if international markets tighten.

The broader implications extend beyond agriculture. Higher fertiliser costs could lead to lower crop yields, rising food prices, and renewed pressure on household incomes.

The United Nations Conference on Trade and Development has already warned about growing global threats to food security due to supply disruptions and geopolitical instability.

Sri Lanka’s experience with the 2021 Sri Lanka organic fertiliser policy serves as a stark reminder of how policy missteps can destabilise agricultural production.

Analysts say avoiding another crisis will require clear procurement strategies, stronger oversight of fertiliser imports, and long-term planning to stabilise supply chains.

Without these reforms, the country risks facing a familiar scenario: fertiliser shortages that cascade into falling harvests, food inflation, and deeper economic strain.

Sri Lanka’s strategy of leasing large tracts of coastal land to attract tourism investors is increasingly being questioned by policy analysts who argue that the country is prioritising land allocation over sustainable planning.

A recent policy brief by the Centre for a Smart Future highlights how weaknesses in governance, environmental planning, and infrastructure have already slowed major tourism projects, raising concerns about the effectiveness of the Government’s current investment drive.

Authorities, led by the Sri Lanka Tourism Development Authority (SLTDA), have identified approximately 3,000 acres of coastal land for potential tourism development. The initiative aims to attract international investors and boost the country’s accommodation capacity as Sri Lanka seeks to strengthen its position in the competitive global tourism market.

But analysts say land availability alone does not translate into successful tourism investment.

The study points to the troubled legacy of the Kalpitiya Integrated Tourism Resort Program, one of Sri Lanka’s flagship resort development initiatives. Launched in 2010, the project envisioned transforming the Kalpitiya peninsula into a world-class tourism hub by leasing 10 islands to private investors.

The plan projected 4,000 hotel rooms and up to 18,000 jobs, but most of the developments remain incomplete or have yet to begin.

In several cases, construction approvals have stalled due to regulatory delays, environmental concerns, or conflicts with local fishing communities who rely heavily on lagoon resources for their livelihoods.

Environmental fragility has also undermined investor confidence. Many of the proposed resort sites are vulnerable to storms and flooding, while freshwater availability remains limited. Efforts to restore mangroves in the region have achieved survival rates of just 18–22 percent, illustrating the delicate ecological balance of the lagoon environment.

Infrastructure shortages further complicate the situation. Waste management systems are insufficient for the scale of tourism envisioned, while healthcare services remain minimal. Kalpitiya’s main hospital is a small 40-bed district facility staffed by only four doctors, with no specialists available.

Regulatory procedures also remain cumbersome. Tourism developers must obtain approvals from agencies including the Coastal Conservation Department, Central Environmental Authority, and Urban Development Authority. Environmental impact approvals alone can take several months.

A review of 250 environmental assessments revealed troubling gaps in the regulatory process. Many reports failed to disclose data sources or explain how environmental and social impacts were evaluated, leaving policymakers and communities with limited clarity on project risks.

Meanwhile, global developments are adding new economic pressure. Tourism analysts estimate that travel disruptions linked to the Gulf conflict could reduce arrivals from Middle Eastern markets traditionally an important source of visitors to Sri Lanka resulting in tourism revenue losses of roughly $450 million in 2026.

Experts say the current approach treats tourism destinations merely as land investment opportunities rather than complex economic and ecological systems.

The report recommends a shift toward evidence-based tourism planning, including pre-lease feasibility assessments that examine environmental suitability, infrastructure capacity, governance readiness, and local community acceptance.

Such reforms, researchers argue, could reduce investor risk, prevent long-term project delays, and ensure tourism development supports both economic growth and environmental sustainability.

Without these changes, Sri Lanka risks repeating a familiar pattern: ambitious tourism masterplans that promise transformation but ultimately struggle to move beyond the drawing board.

Sri Lanka’s exporters are bracing for a potential economic setback as tensions in the Gulf region threaten to disrupt one of the island nation’s most lucrative export markets. Industry leaders say the ongoing conflict could cost the country nearly $650 million in lost export revenue in 2026, highlighting the vulnerability of Sri Lanka’s trade sector to geopolitical shocks.

In response to growing concerns, the Sri Lanka Export Development Board recently convened a strategic meeting with export associations, logistics providers, and government agencies to examine the risks facing businesses shipping goods to Middle Eastern markets.

For decades, Gulf countries have served as vital destinations for Sri Lankan products, particularly tea, spices, food items, and agricultural produce. However, exporters warn that instability in the region is beginning to disrupt commercial activity, from maritime transport to buyer demand.

At the meeting, industry representatives stressed that uncertainty in shipping routes and rising freight charges are already affecting trade flows. Representatives from organisations such as the Sri Lanka Food Processors Association, the Spices and Allied Products Producers and Traders Association, and the Lanka Fruit & Vegetable Producers Processors and Exporters Association raised concerns about delivery delays and increased operational costs.

Logistics professionals also warned that the conflict could strain supply chains if maritime routes through the region become unsafe or heavily restricted. Stakeholders including the Sri Lanka Freight Forwarders Association and the Ceylon Association of Shipping Agents discussed contingency strategies to maintain cargo movement despite the volatile environment.

Government institutions such as the Sri Lanka Tea Board and the Department of Fisheries and Aquatic Resources also participated, acknowledging that any downturn in exports would directly affect thousands of producers and workers across the country.

Economists warn that a prolonged conflict could significantly weaken Sri Lanka’s foreign exchange earnings. The country relies heavily on export revenue to stabilize its balance of payments, particularly after the severe economic crisis experienced in recent years.

If shipments to Middle Eastern markets decline by even 15–20 percent, analysts estimate Sri Lanka could lose roughly $650 million in export income in 2026. Such losses could reduce government revenue, increase trade deficits, and slow overall economic recovery.

However, experts say the crisis also exposes an opportunity for reform. Exporters are urging the government to accelerate trade diversification by targeting new markets in Africa, South Asia, and East Asia. Strengthening value-added exports, investing in digital trade platforms, and improving logistics efficiency are also seen as critical steps.

The outcomes of the recent consultation will be submitted to the Export Development Council of Ministers for policy consideration. Officials are expected to explore financial assistance, risk-mitigation tools, and export promotion initiatives to help businesses navigate the crisis.

For Sri Lanka’s exporters, the message is clear: survival in an increasingly unpredictable global market will depend not only on resilience, but on rapid adaptation to geopolitical realities shaping international trade.

The Committee on Public Finance (COPF) has approved the proposal regarding the salaries and service conditions of officers and staff of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in accordance with the Anti-Corruption Act No. 03 of 2023.

The COPF met in Parliament recently under the chairmanship of MP Dr. Harsha de Silva, where the approval was granted after reviewing the proposal.

Committee members Deputy Ministers Nishantha Jayaweera and Chathuranga Abeysinghe, and MPs Ravi Karunanayake, Wijesiri Basnayake and Nimal Palihena also attended the meeting.

During the discussion, Director General of the Bribery Commission Ranga Dissanayake said CIABOC is functioning as a new institution established under the Anti-Corruption Act passed in 2023.

He noted that the law provides for the Commission to appoint the required officers and employees, while their remuneration and service conditions must receive parliamentary approval with the concurrence of the Finance Minister.

Dissanayake also expressed concern over the two-year delay in implementing these measures following the passage of the Act.

The Finance Ministry’s Management Services Department has approved 971 staff positions required for the Commission along with their salary structures and special allowances.

The COPF also noted that the salary scale proposed for legal officers attached to the Commission is lower than that of legal officers in the Attorney General’s Department. However, the Committee approved the proposal to avoid further delays in recruitment, while emphasizing that appropriate salary scales should be established in the future to strengthen the institution.

The Committee further observed that a separate proposal regarding the salary scales of the Commissioners and the Director General, including the Chairman, will be presented later. It is expected that their salaries will be aligned with those of Court of Appeal judges, as previously recommended by the COPF.

The Committee also noted that higher salaries compared to the general public sector are justified given the sensitive nature of anti-corruption work, the restrictions on earning additional income, and the potential for conflicts of interest.

Meanwhile, the CIABOC Director General pointed out that having the Bribery Commission based only in Colombo creates operational challenges, particularly when conducting investigations and bringing witnesses from other parts of the country.

He said there are plans to expand the Commission’s presence by establishing district-level offices, with the aim of initially setting up at least nine provincial offices across the country.

The government is considering easing restrictions imposed on the production of by-products from rice, Agriculture Minister K.D. Lal Kantha said.

The minister made the remarks during a meeting of the Mahaweli Water Management Committee held on Friday (13).

Lal Kantha noted that Sri Lanka currently produces only about 50% of its maize requirement locally, with the remaining demand being met through imports.

He said that due to the limited land available for maize cultivation, the country should instead focus on increasing rice production.

The minister further stated that the government does not intend to expand the extent of paddy cultivation land, but urged farmers to follow the cultivation guidelines issued by the Department of Agriculture to improve productivity.

He also stressed the importance of improving post-harvest management, including proper paddy drying and storage, to prevent large quantities from entering the market at the same time.

Ensuring fair income for farmers and strengthening food security remain key priorities, Lal Kantha said, adding that farmers would be discouraged from cultivation if they are not guaranteed a reasonable profit.

The minister also acknowledged that the Paddy Marketing Board’s intervention has been limited due to constraints related to storage facilities and staffing.

He thanked farmers and state officials for resuming cultivation following crop damage caused by Cyclone Ditwah.

Lal Kantha also urged farmers to increase the cultivation of Keeri Samba, noting that Sri Lanka still imports the rice variety to meet local demand.