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CPC Braces for Oil Shock amid Middle East Tensions.

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By: Staff Writer

June 23, Colombo (LNW): The Ceylon Petroleum Corporation (CPC) has announced its readiness to implement contingency measures in the face of a possible global fuel crisis, triggered by escalating conflict in the Middle East. The move comes as global oil prices surged to their highest levels since January, following a U.S. strike on Iranian nuclear facilities and a potential blockade of the critical Strait of Hormuz.

Brent crude prices rose by 72 cents to $77.73 a barrel, while U.S. West Texas Intermediate crude climbed 71 cents to $74.55, according to Reuters. The price surge is largely attributed to growing fears of supply disruption as tensions heighten in the Persian Gulf region.

The situation intensified after the Iranian parliament reportedly voted to close the Strait of Hormuz — a key maritime passage through which about 20% of the world’s oil and gas is transported. The narrow 21-mile-wide strait is considered a vital chokepoint, with approximately 20 million barrels of oil passing through it daily from major exporters like Saudi Arabia, Iran, and the UAE, according to the U.S. Energy Information Administration (EIA).

Despite these developments, the CPC stated that there would be no immediate adjustment in local fuel prices. However, officials acknowledged that Sri Lanka is not immune to global market pressures and is actively preparing for potential supply chain disruptions.

CPC officials indicated that the effects of the global oil market instability could stretch into August and September. As a precautionary step, the corporation is testing crude oil samples from alternative sources such as Nigeria, in case imports from traditional suppliers are disrupted.

Economic analysts in Sri Lanka have raised red flags about the looming economic consequences. Professor Priyanga Dunusinghe of the University of Colombo warned that the situation could drive inflation and potentially cost the country around USD 500 million in additional oil import expenses.

He emphasized the importance of swift government action: “The government must prioritize diversifying exports and expanding foreign exchange sources to mitigate the impact. Implementing the proposed Economic Transformation Act should be an immediate priority.”

With tensions in the Middle East showing no signs of abating, experts stress that the ripple effects of rising oil prices could strain Sri Lanka’s fragile post-crisis economy. CPC’s proactive stance and economic policy adjustments may prove crucial in navigating the potential energy crisis looming on the horizon.

Sri Lanka Faces New Plastic Pollution Threat from Indian Ocean Shipwreck

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By: Staff Writer

June 23, Colombo (LNW): Sri Lanka’s northern coast is once again grappling with an environmental crisis as nurdles—tiny plastic pellets used in manufacturing—wash ashore, sparking memories of the devastating X-Press Pearl maritime disaster in 2021.

The latest contamination has been traced to the Liberia-flagged container ship MSC ELSA 3, which sank off the coast of Kerala, India, on May 25. According to the Indian Coast Guard, the vessel was carrying 640 containers, including 13 with hazardous chemicals, along with 85 metric tonnes of diesel and 367 metric tonnes of furnace oil. All 24 crew members were safely rescued.

Though an initial oil spill was contained by Indian authorities, the environmental aftermath has worsened with the dispersal of nurdles. Strong southwest monsoon winds have carried the plastic pellets from Indian shores to Sri Lanka’s northern regions.

First reports of the nurdles came from Mannar, where seabird observer Lahiru Walpita found unusual white pebbles on the beach. He later discovered over 20 bags, each weighing 25 kg, scattered across a 2-km stretch—most still sealed, indicating recent origins rather than remnants from the 2021 X-Press Pearl spill.

“These plastic pellets are now spreading along the northern coast,” said Padma Abeykoon, Additional Secretary of the Ministry of Environment. “We’ve initiated cleaning operations and are closely monitoring the situation with Indian authorities.”

Wildlife experts fear ecological consequences. Nurdles are often mistaken for food by seabirds such as little terns and bridled terns—species currently in breeding season near Adam’s Bridge Marine National Park. Ingestion could lead to death or reproductive failure, according to Walpita.

Sri Lanka’s Marine Environment Protection Authority (MEPA) has activated the National Oil and Hazardous Noxious Substances Spill Contingency Plan. MEPA General Manager Jagath Gunasekara confirmed that, despite the wreck being over 300 nautical miles from Sri Lanka, the risk of toxic chemical contamination remains low for now. “We’re continuously testing water quality as a precaution,” he said.

Indian authorities have temporarily banned fishing within 20 nautical miles of the wreck to mitigate risks, especially from calcium carbide—a reactive substance on board that can release explosive acetylene gas on contact with water.

In a troubling development, another ship—the MV Wan Hai 503—caught fire on June 7 near the same region. Carrying over 2,100 metric tonnes of fuel and hazardous cargo, it is being treated as a higher environmental threat, though Indian officials say the situation is under control.

The recurrence of nurdle pollution highlights the urgent need for stronger maritime safety standards and regional cooperation. Sri Lanka is still pursuing compensation for the X-Press Pearl disaster, with legal proceedings ongoing in international courts.

3,000 Acres of state owned land open for Tourism with New Digital Land Bank

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By: Staff Writer

June 23, Colombo (LNW): Sri Lanka’s tourism sector is set to receive a significant boost with the official launch of the Land Bank Management Information System (LBMIS)—a centralized, automated platform offering over 3,000 acres of state and private land for tourism development.

The initiative, led by the Sri Lanka Tourism Development Authority (SLTDA), was unveiled last week at a press briefing held at the Ministry of Tourism and Foreign Affairs in Colombo.

The LBMIS, now live at landbank.sltda.gov.lk, allows potential investors to browse, evaluate, and apply for strategically located land parcels suited for various tourism-related projects.

It also enables private landowners to list their lands for partnership, lease, or sale. Officials say this new system marks a transformative shift from previous opaque procedures to a more streamlined and investor-friendly model.

“This is a step towards creating a sustainable and competitive tourism sector,” said Deputy Tourism Minister Prof. Ruwan Ranasinghe. “All lands will be granted under a 33-year lease agreement, and we are implementing strict timelines. If projects remain stagnant, land will be reclaimed and reallocated to more serious developers.”

The land bank features over 20 identified plots across major tourism zones, with a mix of beach, eco, cultural, and agri-tourism potential. Among the flagship properties listed are:Dedduwa Lake Resort Zone in the south, offering 1,713 acres for integrated luxury developments.

Kalpitiya Islands, including Uchchamunai (1,095 acres) and Baththalangunduwa (291 acres) for marine and coastal resort ventures.Kuchchaveli Beach Zone with 74 acres earmarked for premium beachfront hotels.

Trincomalee, featuring 40 acres at Rasool Thottam for agri-tourism and 4 acres in Allas Garden for boutique projects.Pasikudah Beachfront, with 6.5 acres ideal for high-end resorts.Pidurangala area, with 19 acres available for nature and heritage-based tourism near the Sigiriya rock fortress.

Bentota National Holiday Resort, offering 24 acres with options for cultural centers and retail.According to SLTDA statistics, the land portfolio covers a diverse range of geographical zones, ensuring equitable regional development.

These sites were selected based on proximity to key attractions, existing infrastructure, and environmental viability. The platform also prioritizes environmental sustainability and community integration in project evaluations.

Tourism officials emphasize that this initiative aligns with Sri Lanka’s broader vision to attract high-value, low-impact tourism, targeting over 2.5 million arrivals by 2026. The country earned USD 2.07 billion in 2023 from tourism and hopes to significantly increase earnings by facilitating large-scale foreign direct investments (FDIs) through this initiative.

The SLTDA is now calling for Expressions of Interest (EOIs) from both domestic and international investors with proven track records in tourism development. The authority also invites private landowners to contribute to the platform, helping to expand the tourism footprint while ensuring transparency and faster decision-making.

TISL challenges restrictive corporate ownership reforms in Supreme Court

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June 23, Colombo (LNW): A prominent Sri Lankan anti-corruption organisation has taken its concerns over a proposed amendment to company law to the nation’s highest court, warning that the reform threatens to entrench secrecy rather than promote transparency.

Transparency International Sri Lanka (TISL) lodged a public interest petition before the Supreme Court on June 19, 2025, challenging specific provisions within a government-backed Bill seeking to amend the Companies Act No. 07 of 2007.

At the heart of the legal challenge lies Clause 7 of the draft legislation, which proposes the creation of a Beneficial Ownership Information (BOI) register — a tool designed to expose the individuals who truly own or control corporate entities.

Whilst the stated purpose of the BOI register is to advance corporate transparency and counter financial crimes, TISL argues that the version laid out in the draft Bill does the opposite. Rather than enabling public scrutiny, the proposed system introduces significant limitations on access to ownership information, thereby frustrating efforts to detect corruption and illicit financial activity.

The organisation maintains that opaque business structures are routinely exploited to hide wealth, facilitate illegal transactions, launder money, and advance foreign interference and organised crime.

Against this backdrop, TISL insists that a robust and publicly accessible BOI framework is essential, particularly as Sri Lanka continues to recover from its recent political and economic crises.

Despite the government’s commitments under the Governance Action Plan 2025 and the National Anti-Corruption Action Plan for 2025–2029 — both of which pledge to establish an open, searchable online register — the Bill currently under consideration fails to deliver on these promises.

TISL is particularly critical of Section 130A(6), which merely instructs the Registrar of Companies to keep an internal list of beneficial owners, with no requirement for digital publication or coordination with other public data systems. Furthermore, Section 130D restricts the release of information to just the name of the owner and the nature of their control, and even then, only upon individual request.

This request-based model, TISL contends, is cumbersome and time-consuming, and would deter journalists, investigators, and civil society from accessing critical information in a timely manner.

The watchdog further argues that such a system runs counter to global best practices, citing international recommendations — including the 2023 IMF Governance Diagnostic Assessment — which advocate for open, verifiable registers as a central element of effective anti-corruption policy.

TISL’s petition calls on the Supreme Court to rule that Clause 7 of the proposed amendment conflicts with the Constitution, specifically Article 12(1), which ensures equality before the law, and Article 14A, which guarantees the public’s right to information. Whilst acknowledging the inclusion of the Right to Information framework in the draft law as a step in the right direction, TISL warns that the lack of proactive disclosure will weaken oversight, hamper asset recovery efforts, and diminish public trust.

Widespread inquiry demanded into controversial drug scandal in Sri Lanka’s health sector

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June 23, Colombo (LNW): Amid growing public outrage over the distribution of substandard medicines in state hospitals, the Doctors’ Trade Union Alliance for Medical and Civil Rights has urged the government to launch a comprehensive investigation into all those implicated in the unfolding pharmaceutical controversy, which dates back to the tenure of former Health Minister Keheliya Rambukwella.

Dr Chamal Sanjeewa, Chairman of the alliance, stressed that accountability must extend far beyond political figures. He called for scrutiny of a broad spectrum of officials who allegedly played a role in facilitating the supply and approval of unsafe medical products.

Amongst those named were individuals linked to the national blood bank, who are suspected of having diverted blood for use in the production of inferior pharmaceuticals. Senior figures at the State Pharmaceuticals Corporation (SPC), including its former chairpersons, have also come under suspicion for having approved dubious procurements despite irregularities in the documentation.

Dr Sanjeewa has also urged the Commission to Investigate Allegations of Bribery or Corruption to widen its probe to include regulatory officials at the National Medicines Regulatory Authority (NMRA). He alleged that the authority greenlit medications without adequate testing, further undermining public confidence in the country’s health safeguards.

Additionally, he criticised the Director General of Health Services for repeatedly failing to attend key decision-making meetings, thereby allowing questionable imports to proceed unchecked.

The implications of this scandal are deeply troubling. According to revelations made in court by the Attorney General, some of the drugs distributed to patients contained dangerous levels of bacteria and contaminated saline—posing a direct threat to patient safety.

The AG further clarified that the responsibility for oversight lies squarely with health ministry officials and not with his office.

Concerns have also surfaced over the Health Ministry’s failure to issue certificates confirming that imported medicines met the standards of the World Health Organisation (WHO), casting doubt over the quality of pharmaceuticals administered in public hospitals across the country.

In a move to restore integrity to the system, Dr Sanjeewa offered his support for establishing a domestic drug testing laboratory accredited by the WHO. He appealed to the President to intervene directly, warning that unless immediate corrective measures are taken, patients with critical conditions such as cancer, infections, and diabetes remain at grave risk due to compromised treatment.

“The collapse of the mandatory quality assurance process under the NMRA Act has put countless lives in jeopardy,” Dr Sanjeewa stated. “This is not merely an issue of financial malpractice—it is a humanitarian crisis. Had the appropriate controls been in place, this dangerous lapse would never have occurred. The public deserves justice, transparency, and a healthcare system they can trust.”

Nationwide coconut protection drive to tackle invasive pest threat

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June 23, Colombo (LNW): In a bid to curb the escalating threat posed by invasive pests—particularly whiteflies—the Coconut Cultivation Board is initiating a comprehensive national campaign dubbed “Coconut Fortnight” (locally referred to as Pol Desathiya).

This concerted effort aims to safeguard one of Sri Lanka’s most vital agricultural resources from further damage.

The inaugural phase of the initiative is set to begin on July 14, with Jaffna district identified as the starting point for field operations. Dr Sunimal Jayakody, Chairman of the Coconut Cultivation Board, stated that the campaign is being launched as an urgent countermeasure following mounting concerns over the whitefly outbreak, which has begun to impact coconut yield and tree health in several regions.

“The Coconut Fortnight is not just symbolic,” Dr Jayakody explained. “We are undertaking a systematic intervention to contain and eliminate the spread of whiteflies, beginning in the north. The trees in Jaffna will undergo a thorough cleansing process using water jets to physically remove these pests.

Though labour-intensive, this method has proven effective in reducing pest populations without the use of excessive chemicals.”

Preparations are already under way to mobilise personnel, equipment, and logistical support for what is expected to be one of the largest pest control operations carried out by the Board in recent years.

Authorities are coordinating with local councils and agricultural officers to ensure a smooth rollout of the campaign across all coconut-growing districts in the coming weeks.

UN Human Rights Chief embarks on pivotal visit to Sri Lanka

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June 23, Colombo (LNW): Volker Türk, the United Nations High Commissioner for Human Rights, is arriving in Sri Lanka today (23) for an official visit that will span until June 26.

His presence marks a significant diplomatic development, being the first visit by a UN human rights chief to the island nation in over eight years.

According to Sri Lanka’s Ministry of Foreign Affairs, Foreign Employment, and Tourism, Türk’s itinerary includes high-level engagements across political, religious, and civil sectors.

He is expected to meet with the country’s President and Prime Minister, along with the Foreign Minister and several other key Cabinet figures. Parliamentary members, senior government officials, religious leaders, representatives from civil society, diplomats, and the Human Rights Commission of Sri Lanka are also scheduled to hold discussions with the visiting dignitary.

The visit is framed as part of a continued dialogue between Sri Lanka and the UN on human rights matters and post-conflict reconciliation. Emphasis will reportedly be placed on strengthening cooperation in the areas of accountability, transitional justice, and the safeguarding of civil liberties.

As part of his tour, Türk is set to travel to the historic city of Kandy, where he will visit the revered Temple of the Sacred Tooth Relic and meet the Chief Prelates of the Malwatte and Asgiriya Chapters—two of the most influential Buddhist monastic orders in the country.

His journey will also take him to the northern and eastern regions, with planned stops in Jaffna and Trincomalee. There, he is expected to meet with the provincial Governors and engage with local communities, particularly those affected by the long-standing ethnic conflict.

Showers, thundershowers expected in several areas across island (Jun 23)

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June 23, Colombo (LNW): Showers will occur at times in Sabaragamuwa province and in Kandy and Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (23).

Several spells of showers will occur in the Western and North-western provinces and in Galle and Matara districts.

Showers or thundershowers may occur at a few places in the Uva province and in Ampara and Batticaloa districts during the afternoon or night.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Southern and North-western provinces and in Trincomalee district.

The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers will occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.

Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph.

Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota.

Wind speed can increase up to (45-50) kmph at times in the sea areas extending from Chilaw to Matara via Colombo and Galle and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota will be rough at times.

The sea areas off the coast extending from Chilaw to Matara via Colombo and Galle and from Kankasanthurai to Trincomalee via Mullaittivu will be fairly rough at times.

Naval and fishing communities are requested to be vigilant in this regard.

Sri Lanka, ADB Collaborate on New Export Development Plan to Boost Trade

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By: Staff Writer

June 22, Colombo (LNW): The Sri Lanka Export Development Board (EDB), in partnership with the Asian Development Bank (ADB), is intensifying efforts to finalize the National Export Development Plan (NEDP) for the period 2025–2029, aimed at revitalizing the country’s export sector and steering it towards sustainable, inclusive growth.

The initiative comes at a time when Sri Lanka is seeking to enhance foreign exchange earnings, attract investment, and rebuild its economy following years of economic and political challenges.

The second round of discussions on the NEDP took place on 2 June 2025 at the EDB headquarters in Colombo, following the inaugural session held in April. The new plan is being developed through a diagnostic-based, data-driven approach and builds on the experience and lessons learned from the National Export Strategy (NES) 2018–2022, a comprehensive policy framework introduced by a previous government.

The NES 2018–2022, which identified priority sectors including ICT/BPM, wellness tourism, processed food, and apparel, laid the foundation for export diversification and competitiveness. However, the disruptions caused by the COVID-19 pandemic, the 2022 economic crisis, and global market volatility prevented the full implementation of the strategy, underscoring the urgent need for a renewed, adaptive, and forward-looking framework.

EDB Chairman and CEO Mangala Wijesinghe expressed appreciation for the continued support from the ADB and emphasized Sri Lanka’s ambitious target of reaching US$36 billion in export earnings by 2030. “This plan will allow us to focus on emerging markets, build resilience in our export systems, and integrate effectively into global value chains,” he said.

According to the EDB, Sri Lanka earned approximately US$14.9 billion from merchandise and services exports in 2023, with the apparel sector remaining the largest contributor. However, challenges such as overdependence on a few markets, limited product diversification, global economic uncertainty, and rising competition from regional peers have highlighted the vulnerabilities in the country’s export structure.

The NEDP 2025–2029, supported under the ADB’s Policy-Based Lending (PBL) program and implemented through the Ministry of Industry and Entrepreneurship Development, is expected to address these issues head-on. The plan’s methodology includes stakeholder consultations, trade diagnostics, market research, value chain integration, and alignment with the government’s development vision: “A Thriving Nation – A Beautiful Life.”

ADB officials stressed the importance of private sector involvement, policy coordination, and measurable implementation frameworks. The plan also aims to promote export participation by SMEs, encourage sustainable production, and foster gender inclusivity.

As global trade dynamics evolve, Sri Lanka’s renewed export strategy will be critical in enhancing its economic resilience, securing foreign exchange, and generating employment. The EDB plans further consultations with industry stakeholders to ensure the NEDP becomes a cohesive, actionable, and transformative blueprint for the next five years.

Sri Lanka to Ease Drone Regulations, Streamline Approvals

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By: Staff Writer

June 22, Colombo (LNW): Sri Lanka is poised to significantly ease administrative hurdles for drone operations by directing the Police to issue “No Objection” letters for valid requests, marking a crucial step towards liberalizing the country’s drone regulatory framework.

The decision was made during a high-level stakeholder dialogue on drone operations convened at the Ministry of Defence, under the patronage of Defence Secretary Air Vice Marshal Sampath Thuyakontha (Retd). The session brought together officials from the Ministry of Defence, the Civil Aviation Authority of Sri Lanka (CAASL), the tri-forces, Sri Lanka Police, and members of the civil drone industry.

In his opening address, the Defence Secretary stressed the importance of striking a balance between regulatory oversight and technological advancement. He emphasized that while drones offer significant potential in commercial, environmental, and public safety applications—including agriculture, surveillance, logistics, and disaster response—their operations must be controlled through a coherent framework to ensure national security.

The meeting focused on resolving procedural delays that have hindered the growth of the drone sector. Civil drone operators voiced concerns over prolonged waiting times and inconsistent practices among authorities when securing operational clearance. In response, the Defence Secretary underscored the need for improved inter-agency collaboration and timely submission of applications by operators.

In a major policy shift, he instructed all police stations to be officially informed of the legitimate civilian use of drones. He further authorized the issuance of “No Objection” letters by the police, provided that requests meet established criteria and are subject to proper oversight. This move is expected to standardize procedures across the island, especially benefiting industries such as media, infrastructure inspection, land surveying, and tourism.

Officials from the Civil Aviation Authority, led by Director General Air Vice Marshal Sagara Kotakadeniya (Retd), also presented updates on the current Standard Operating Procedures (SOPs) and outlined steps to enhance regulatory coherence. The CAA, which oversees drone registration, airspace classification, and operator licensing, will work closely with the Defence Ministry to align civilian drone use with national policy goals.

With drone usage in Sri Lanka increasing rapidly, this initiative marks a turning point in enabling responsible and lawful integration of drone technology into the broader economy. The move is expected to bolster innovation while upholding public safety, operational transparency, and security interests.

The Defence Ministry’s commitment to a collaborative and transparent approach is likely to strengthen Sri Lanka’s drone ecosystem and foster a more agile regulatory environment.

In Sri Lanka, while only around 50 drones are officially registered with the Civil Aviation Authority, many more are believed to be in operation across various sectors. Several firms are involved, including those providing drone services for agriculture, construction, and entertainment (e.g., drone shows). The market is projected to grow, with a predicted annual growth rate of 6.33%.

Although the Civil Aviation Authority has only registered around 50 drones, the actual number in operation is likely much higher.

Drones are also used in law enforcement, wildlife monitoring, disaster management, and more. The Sri Lankan drones market is projected to experience significant growth, with a projected annual growth rate of 6.33%.

The increasing use of drones in various industries, coupled with advancements in drone technology, is expected to drive further growth in the market.