India has pledged Sri Lankan Rupees 290 million to revitalize the Karainagar Boatyard in the Northern Province, as announced by the Indian High Commission. 

This development project, in collaboration with Cey-Nor Foundation Ltd., aims to enhance the island nation’s fisheries sector while creating job opportunities and boosting livelihoods for local communities.

A MoU formalizing this agreement was signed on December 16 by Indian High Commissioner Santosh Jha and Sri Lanka’s then High Commissioner to India, Kshenuka Dhireni Senewiratne. The initiative includes extensive civil works and the installation of advanced machinery and equipment, ensuring the facility’s full operational capacity.

Once completed, the revamped boatyard will not only improve the quality and supply of fisheries products but also stimulate economic growth in the area. Small businesses surrounding the boatyard are expected to benefit, contributing to sustainable development.

India’s development assistance portfolio in Sri Lanka exceeds $5 billion, reflecting a strong commitment to people-centric projects. In the Northern Province,

India has previously undertaken significant initiatives, including the construction and renovation of over 41,000 homes, establishing a Cultural Centre in Jaffna, and dredging operations at Kankesanthurai Port.

Other efforts have included repairs to schools and hospitals, restoration of the Thiruketeeswaram Temple, and provision of essential tools and equipment to the fishing and agricultural communities.

The Karainagar Boatyard, established in 1967 with Norwegian support, was once a leader in fiberglass boat production.

However, operations ceased in 1990 due to challenging circumstances. In 2016, Rs. 350 million was allocated for its renovation, but financial constraints left critical tasks incomplete. India’s latest financial grant seeks to address these gaps, completing the facility’s restoration.

The project has received all necessary approvals, including clearance from Sri Lanka’s Attorney General and Foreign Affairs Ministry.

It has also been endorsed by the National Planning Department and Foreign Resources Department, highlighting its importance to the nation’s maritime sector.

Former Fisheries Minister Douglas Devananda’s proposal for the renovation garnered Cabinet approval, paving the way for progress. With India’s support, the project aims to bring renewed vitality to the Karainagar Boatyard, reaffirming its legacy and fostering economic resilience in the region.

The Sri Lankan government has introduced new restrictions on marketing food and beverages (F&B) to children, effective January 1, 2025, under the Food (Labelling & Advertising) Regulations 2022.

The Ceylon Chamber of Commerce, through its Food & Beverage Steering Committee, played a significant role in shaping these regulations. Over a decade-long consultation process with the Ministry of Health, the committee provided inputs on food science, nutrition, international regulatory practices, and legal frameworks.

Key provisions of the regulations include:

• Prohibiting children under 12 from appearing in F&B advertisements.
• Banning advertising and promotion of F&B products targeting children under 12 without prior approval from the Ministry of Health.

Additionally, new food labelling requirements, effective July 1, 2025, will mandate detailed information on nutritional values and ingredient lists. These updates aim to empower consumers with the knowledge to make informed choices and align Sri Lanka’s regulatory framework with international standards, addressing gaps in the 2005 regulations.

Buwanekabahu Perera, CEO of the Ceylon Chamber of Commerce, lauded the Ministry of Health for modernising the food regulatory framework after two decades. However, he acknowledged the challenges businesses, from SMEs to large-scale operators, will face during the transition.

“Balancing consumer protection with the continued availability of packaged food and preserving longstanding brand equity is crucial. A corrective and collaborative approach to implementing these regulations will ensure a smooth transition,” he stated.

This move signifies a step forward in safeguarding children’s health while aligning the country’s food industry with global best practices.

The Colombo Stock Exchange (CSE) achieved a significant milestone today (January 2), with the All Share Price Index (ASPI) crossing the 16,000-point threshold for the first time in its history.

The ASPI surged by 403.94 points, closing at 16,348.55, marking a 2.53% increase compared to the previous close.

Similarly, the S&P SL20 Index gained 111.99 points, closing at 4,974.09, reflecting a 2.30% rise.

The trading day also recorded an exceptional transaction turnover exceeding Rs. 12.86 billion, underscoring robust market activity and investor confidence.

This milestone highlights growing momentum in Sri Lanka’s capital markets, reflecting optimism and sustained investor engagement.

Senior Professor Wasantha Athukorala from the University of Peradeniya’s Economics and Statistics Department commended the Government’s efforts under the “Clean Sri Lanka” initiative, aimed at transforming a nation hindered by corruption, fraud, and mismanagement for 76 years.

Prof. Athukorala highlighted the importance of accelerating economic growth in 2025, building on the significant achievements of the past year. He outlined key milestones in the country’s recovery journey, including:

• Achieving 5% overall economic growth and nearly 10% growth in the industrial sector in 2024.
• Successfully controlling inflation and reducing interest rates to encourage business activities.
• Stabilising the Sri Lankan Rupee and increasing foreign reserves through effective Central Bank policies.

He stated that these achievements laid the groundwork for sustained growth, urging the Government to aim for 8% to 10% economic growth in 2025. Such progress, he explained, would reduce the risks associated with repaying foreign and domestic debt and position Sri Lanka as a rapidly developing nation.

Prof. Athukorala also stressed the need for the upcoming national budget, set to be presented in February, to include creative and impactful solutions to longstanding economic and social challenges.

He called for collective responsibility, noting the current widespread societal opposition to corruption and inefficiency. “Both political leaders and citizens are demanding a transformation into a state free from fraud and bribery. Stabilising the economy and society is essential to achieving this goal,” he said.

The professor concluded by emphasizing that the success of the “Clean Sri Lanka” initiative depends not only on Government reforms but also on active participation and commitment from all sectors of society.

The Excise Department reported a total revenue of Rs. 227 billion for 2024, narrowly missing the Government’s target of Rs. 232 billion. Despite falling short, the department demonstrated strong performance in certain months, with December recording the highest revenue of Rs. 26 billion.

However, May saw the lowest revenue generation, with Rs. 14.3 billion. Other notable figures include Rs. 23.1 billion in April, Rs. 20.3 billion in August, and Rs. 20 billion in November.

A spokesperson for the department attributed the shortfall in meeting the annual target to the increasing prevalence of illegal alcohol consumption, which poses a significant challenge to legitimate revenue collection. The department’s efforts to curb illicit activities and sustain revenue generation remain a critical focus for the upcoming year.

The Sri Lanka Transport Board (SLTB) incurred a loss of Rs. 3.01 billion in 2024 during the procurement of 500 buses, according to a report by the National Audit Office. The buses, initially estimated to cost Rs. 5 million each, were purchased at Rs. 11.02 million, resulting in an overpayment of Rs. 6 million per bus.

The loss occurred due to changes made to the original procurement decision under verbal instructions from the Transport Minister, which lacked scientific justification. The SLTB had initially planned to utilize the remaining US$ 20 million from an Indian loan agreement to replace aging buses over 15 years old and ensure uninterrupted urban transportation services.

The procurement process began on May 23, 2018, to purchase 400 buses with 50-54 seats and 100 buses with 32-35 seats. However, on January 1, 2020, the Transport Minister altered the plan to procure 500 smaller buses with 32-36 seats and 100 buses with 42-45 seats. Subsequently, on January 3, 2023, a decision was made to procure 500 Ashok Leyland Kynx buses with 32 seats each at US$ 26,662.50 per bus, amounting to a total payment of Rs. 5,551 million.

The National Audit Office highlighted the absence of transparent decision-making and adherence to proper procurement guidelines, which led to the inflated costs. This financial mismanagement raises concerns over the efficient use of public funds and emphasizes the need for accountability in such processes. The overpayment represents a significant missed opportunity to allocate resources to other critical sectors, underlining the importance of stringent oversight in public sector procurements.

Prevailing showery condition in the Northern, North-central, Eastern, and Uva provinces is expected to reduce temporally from today (03).

Several spells of showers will occur in Uva province and in Ampara and Hambantota districts.  

Showers or thundershowers will occur at several places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts during the afternoon or night.

Fairly strong winds of (30-40) kmph can be expected at times over Northern, Eastern, North-central and North-western provinces and in Hambantota district.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts during 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.