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Prime Minister reflects on progress and future aspirations for Sri Lanka in 2025

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January 01, Colombo (LNW): As Sri Lanka welcomes the year 2025, Prime Minister Harini Amarasuriya delivered a hopeful and reflective message, drawing attention to the nation’s transformative journey over the past year and the optimism that surrounds its future.

She celebrated the significant strides taken towards a more inclusive, forward-thinking society, where citizens have come together in their shared commitment to embrace change and foster unity.

The Prime Minister emphasised that the nation’s collective decision to pursue a new direction was not just about political change, but about the broader desire to build a society rooted in empathy, respect, and inclusivity.

The people of Sri Lanka have made it clear that they are ready for change—change towards a political culture that is clean, people-centered, and grounded in compassion. Unity, not division, is the path they have chosen,” she remarked.

She went on to highlight her government’s unwavering commitment to improving critical areas such as the economy, industrial growth, and education.

Our vision is clear: we want to build a future where every citizen can live with dignity, freedom, and peace. A future where no one is held back by their race, gender, ethnicity, or religion,” she asserted, underlining the importance of creating equal opportunities for all.

While reflecting on the challenges of the past, Prime Minister Amarasuriya acknowledged the missed opportunities for achieving national unity in previous years. She stressed that this was not a moment for regret, but rather a call to action.

In the past, we have had moments when unity was within our reach, yet we failed to fully seize those chances. But this time, we cannot afford to let this opportunity slip away,” she stated, urging the nation to unite and safeguard the progress made.

We must work together to preserve and build on the gains we have achieved, ensuring that we continue moving forward as one nation.

Full Statement:

“This year has been a truly transformative year for us Sri Lankans. The citizens of this country have chosen change: a clean and people centered political culture and empathetic society, unity as opposed to division.

As a responsible government, we remain committed to uplifting the nation in various critical areas, including the economy, industry, and education. Our vision is to create a future where every citizen can live a peaceful, free, dignified and fulfilling life, transcending barriers of race, gender, ethnicity, or religion.

We have had several opportunities in the past to unite as a nation, but we failed to fully realize the benefits of those moments. However, we must now ensure that this opportunity is not missed and that we work collectively to preserve it. At this critical time, as the state is fully committed to serve the public, I urge everyone to step forward with determination as we enter the year 2025. 

While the journey towards a brighter future is challenging, we have already taken significant steps towards achieving that goal. As we approach the threshold of a new year filled with hope and promise, I extend my sincere best wishes to all citizens for a peaceful, happy, and prosperous 2025.

I invite everyone to come together with a shared purpose, setting aside all differences, as we embark on this new year to ensure its success and work towards building a better future for the Sri Lanka. Our collective focus should be to restore the name of “Sri Lanka” as a proud and prosperous nation on the global stage.”

Gen. Shavendra Silva speaks candidly about his actions during ‘Aragalaya’

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January 01, Colombo (LNW): General Shavendra Silva, the outgoing Chief of Defence Staff (CDS) of Sri Lanka, delivered a poignant farewell message, reflecting on his over four decades of service in the Sri Lanka Army.

Having retired after a distinguished military career, General Silva marked the end of his tenure as the 8th CDS, a role he assumed on 1 June 2022, following a period of significant national turmoil.

During his farewell address, General Silva spoke candidly about his actions during the ‘Aragalaya’ protests of 2022, a period of intense civil unrest in Sri Lanka. He stressed his intention to minimise civilian casualties during the protests, explaining that he had directed the military to use only minimal force in response to the demonstrators.

I had no desire to harm or kill unarmed civilians. My instructions were clear: to avoid unnecessary violence,” General Silva stated, adding that his approach had been misinterpreted by those in power at the time, which, he felt, led to a misunderstanding of his strategy.

Reflecting on the circumstances surrounding his appointment as CDS, General Silva explained how he had transitioned from his role as the 23rd Commander of the Sri Lanka Army to the country’s top defence position.

When I was appointed CDS, I had just seven months remaining before my retirement as Army Commander. Shortly thereafter, the political situation took a dramatic turn, with President Gotabaya Rajapaksa fleeing the country. At the time, I was overseas attending a national security conference, with official permission,” he recalled.

Despite the intense political and military challenges of the period, General Silva made it clear that his loyalties lay firmly with the nation. “I did not seek power for personal gain or betrayal, nor did I act as a pawn for foreign interests,” he said, referring to the accusations that sometimes arose during the protests. He went on to explain that his decision to deploy the Air Mobile Brigade to rescue the then Prime Minister, who was trapped by protesters, was a testament to his commitment to safeguard national leadership during a crisis.

Throughout his career, General Silva had earned the trust of several Sri Lankan Presidents, who recognised his disciplined approach to military service. In addition to his military duties, he held prominent civilian roles, including as the Deputy Adviser on National Security, Chairman of the National Sports Selection Committee, and Chief Operations Officer of the Presidential Task Force on Green Agriculture.

His military career was equally distinguished, having risen through the ranks from Second Lieutenant to the highest military office in the country. General Silva served in various key positions, including as Chief of Staff of the Sri Lanka Army and Colonel of the prestigious Gajaba Regiment, the Special Forces Regiment, and the Commando Regiment.

His leadership in commanding the 58 Division during the final stages of the Sri Lankan civil war in 2009 was particularly notable. Under his command, the division played a pivotal role in the Wanni Humanitarian Operation, a decisive campaign that led to the conclusion of the three-decade-long conflict and the restoration of peace in Sri Lanka.

Known for his expertise in infantry tactics and battlefield strategy, General Silva also earned a reputation for his strong leadership and discipline. His tenure saw him become one of the most successful divisional commanders, with his regiment achieving significant success in military operations, making him a respected figure both within Sri Lanka’s military circles and internationally.

Reflecting on his career, he expressed pride in his service to the nation, saying, “My aim was always to serve with honour and integrity, and I leave with no regrets, having done my duty to the best of my ability.

Sri Lanka sets new record with over 312,000 workers going abroad in 2024

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January 01, Colombo (LNW): Sri Lanka has witnessed a surge in its workforce going abroad, with 312,836 individuals seeking employment overseas in 2024, according to the Sri Lanka Bureau of Foreign Employment (SLBFE).

This marks a new record, surpassing the previous high of 297,584 workers who went abroad in 2023.

Of the total, 185,162 were male workers, while 127,674 were female workers.

The data highlights a growing trend of Sri Lankans pursuing job opportunities abroad, with the top destinations being Kuwait and the United Arab Emirates, where 77,546 and 51,550 Sri Lankans were employed, respectively.

In recent years, however, there has been a noticeable shift in migration patterns. More Sri Lankans are opting to work in countries such as South Korea, Israel, and Japan, which are becoming increasingly attractive due to better job prospects and improved working conditions.

In 2024, 7,098 Sri Lankans headed to South Korea, 9,665 went to Israel, and 8,665 found work in Japan.

The growing number of workers abroad has had a significant impact on the country’s foreign exchange reserves, with Sri Lanka receiving a substantial boost in remittances.

By the end of November 2024, the total foreign exchange earnings from overseas workers had reached USD 6,462 million, reflecting a marked increase in the financial contributions of Sri Lankans working abroad.

These figures contrast with the previous year, where 2023 saw a total of 297,584 individuals go abroad, with 164,680 male and 132,904 female workers.

Minister confirms no tax on children’s savings interest below Rs. 150,000

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January 01, Colombo (LNW): Cabinet Spokesman and Minister Dr. Nalinda Jayathissa assured the public yesterday (31) that children’s savings accounts with monthly earnings under Rs. 150,000 would not be subject to any withholding tax on interest.

His comments followed inquiries from the media regarding the controversial 10 per cent withholding tax imposed on interest earned from accounts held by children under the age of 18.

The Minister clarified that this tax would only be applicable in cases where the child’s total monthly income, including interest from savings, exceeds the Rs. 150,000 threshold.

In such instances, the interest earned on the savings would be included in the taxable income.

He stressed, however, that this would not affect the majority of children’s accounts, where the interest typically falls below this threshold.

Further addressing concerns raised by journalists, Dr. Jayathissa mentioned that the government was actively working to streamline and ease the process of tax recovery.

We are developing a new system that will simplify the process of refunding withholding tax, which will come into effect from April 1 of the coming year,” he explained. “This measure will ensure that the public faces minimal challenges when dealing with the Inland Revenue Department.

Additionally, the Minister pointed out that extensive consultations are taking place with Sri Lanka’s banking sector to ensure that the tax-related processes are made as convenient as possible for account holders.

By coordinating with the banks, the government intends to create a seamless experience for the public, allowing them to manage their tax matters efficiently through banking channels.

Dr. Jayathissa concluded by expressing confidence that these measures would ultimately benefit the public by making tax procedures more transparent, accessible, and straightforward.

CEYPETCO announces kerosene price slash

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January 01, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has confirmed a reduction in the price of kerosene, with effect from midnight on December 31.

The revised price sees a decrease of Rs. 5 per litre, bringing the cost of a litre of kerosene to Rs. 183.

This move comes as part of ongoing adjustments to fuel prices in the country, though the CEYPETCO has asserted that no changes will be made to the prices of other fuel varieties at this time.

Specifically, the prices of Petrol Octane 92, Petrol 95 Octane Euro 4, Lanka Auto Diesel, and Lanka Super Diesel 4 Star Euro 4 will remain unchanged.

President looks ahead to a bright future as the Nation welcomes 2025

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January 01, Colombo (LNW): As Sri Lanka steps into the year 2025, President Anura Kumara Dissanayake has expressed a hopeful and positive outlook for the country’s future.

Speaking at a special New Year address, he declared that the nation was entering a new chapter of opportunity, where the long-awaited dreams of prosperity and progress were on the verge of being realised.

Reflecting on the milestones of 2024, President Dissanayake was quick to highlight the success of the parliamentary elections, which he saw as a turning point for the country.

“The elections of 2024 have granted us a resounding mandate from citizens across all corners of the nation—North, East, West, and South,” he remarked. “With this overwhelming support, we have not only formed a government with a commanding majority but have also laid the foundation for a profound political transformation, ensuring that the will of the people is truly honoured.”

The President went on to stress the importance of this mandate in facilitating the creation of a new political landscape, one that would foster transparency, accountability, and effective governance.

“This is a clear signal from the people of Sri Lanka that they want a government that works for their welfare and a political environment that is free of corruption and inefficiency,” he added.

Looking forward to the year ahead, the President set out a vision for national development, focusing on key areas he believes are crucial to the country’s success.

Amongst his top priorities was the eradication of rural poverty, which he identified as a major challenge that requires immediate attention.

He further underscored the significance of the government’s “Clean Sri Lanka” initiative, which was launched in tandem with the arrival of the New Year.

“This programme, which encompasses a wide array of social, environmental, and ethical reforms, aims to rejuvenate Sri Lanka and propel it to new heights of dignity and prosperity,” President Dissanayake explained. “By prioritising cleanliness in both our physical and moral landscapes, we are laying the groundwork for a more harmonious society that can grow sustainably in the decades to come.”

Equally important to the President’s vision for 2025 is the country’s digital transformation. In today’s increasingly technology-driven world, he highlighted the need for Sri Lanka to build a robust digital economy, capable of creating new opportunities for innovation, employment, and global competitiveness.

“A thriving digital economy will not only create jobs but will also help lift Sri Lanka into the modern age, making it a key player in the global digital landscape,” he said.

Full Statement:

“As Sri Lankans, we step into 2025 with the dawn of a new era, a time when the dreams of prosperity that our nation and its people have long cherished begin to materialize.

The parliamentary elections of 2024 enabled us to establish a government with a strong majority, earning the trust of people across the North, East, West, and South. With this mandate, we have initiated a transformative political shift, fulfilling our democratic responsibilities to build the good governance our citizens aspire to.

Our primary developmental goals include eradicating rural poverty, implementing the “Clean Sri Lanka” initiative, and building a digital economy. The “Clean Sri Lanka” initiative, launched alongside the New Year, aims to uplift society to greater heights through social, environmental, and ethical revival.

In 2024, we achieved significant economic stability as a nation. With this progress as our foundation, we move forward in 2025 with renewed vision and determination, working towards creating a prosperous nation and ensuring a beautiful life for everyone. I firmly believe this moment marks an exceptional opportunity to inspire new ideals and foster greater unity for the benefit of all.

For the first time in Sri Lanka’s history since independence, we now have the chance to make the dream of a united and developed nation a reality through people-centered governance. 

This unparalleled responsibility rests upon all of us, and we fully understand its importance. In 2025, with courage and unwavering commitment, we will strive to regain the victories missed in the past century and bring these dreams to fruition.

Wishing everyone a Happy New Year filled with prosperity, unity, and renewed hope as we strive for peace and progress together.”

New year starts with persisting showery trend across island

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January 01, Colombo (LNW): Showers or thundershowers will occur at times in Eastern and Uva provinces and in Matale, Nuwara-Eliya, Polonnaruwa, Hambantota and Matara districts, the Department of Meteorology said in its first daily weather forecast in the New Year 2025.

Heavy showers above 100 mm can be expected at some places in Eastern and Uva provinces and in Matale, Nuwara-Eliya and Hambantota districts.

Several spells of showers may occur in the Northern province and in Anuradhapura district.

Showers or thundershowers will occur at several places elsewhere during the afternoon or night.

Fairly heavy showers above 75 mm can be expected at some places in Western, Sabaragamuwa provinces and in Galle district.

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

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces during the morning.

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 or thundershowers will occur at times in the sea areas extending from Trincomalee to Matara via Pottuvil and Hambantota. Showers or thundershowers may occur at several places in the other sea areas around the island during the evening or night.
Winds:
Winds will be north-easterly in the sea areas around the island and 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 Colombo to Kankasanthurai via Puttalam. Wind speed can increase up to (40-50) kmph at times in the sea areas off the coast extending from Kankasanthurai to Galle via Trincomalee and Hambanthota.
State of Sea:
The sea areas off the coast extending from Colombo to Kankasanthurai via Puttalam will be rough at times. Other sea areas may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka’s Economy: Signs of Recovery and Optimism

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By: Staff Writer

December 31, Colombo (LNW): Sri Lanka’s economy is showing promising signs of recovery, with key economic indicators reflecting positive momentum. As the economy stabilizes and moves in the right direction, several metrics highlight this progress.

By the end of November 2024, Sri Lanka’s Official Reserve Assets rose to USD 6,462 million, according to the Central Bank.

Additionally, inflation, measured by the National Consumer Price Index (NCPI), remained in negative territory for the third consecutive month, recording a deflation of 1.7% in November 2024, compared to 0.7% in October.

 Food prices showed no year-on-year changes, while the Non-Food category experienced a deflation of 3.1%. Central Bank Governor Dr. Nandalal Weerasinghe expects inflation to stabilize at 4-5% by mid-2025.

In the stock market, the All Share Price Index (ASPI) set a record, rising by 4.89% to 15,535.60 points as of December 27, 2024.

The S&P SL 20 Index also increased by 5.56% to 4,666.65 points. Fiscal management showed improvement, with the overall budget deficit from January to October 2024 decreasing to Rs. 1,060.7 billion from Rs. 1,547 billion during the same period in 2023.

 Furthermore, the Sri Lankan rupee appreciated against the US dollar by 10.1% in 2024.Worker remittances recorded significant growth, reaching USD 5,399.8 million by November, a 10.1% increase year-on-year.

Monthly remittance revenue averaged USD 530.1 million, with total earnings for 2024 expected to surpass USD 6 billion. Total exports for November 2024 amounted to USD 1,269.33 million, marking a marginal 0.04% increase from November 2023.

Services exports rose by 20.89% to USD 326.23 million, offsetting a 5.6% decline in merchandise exports, which totaled USD 943.1 million.

Tourism has been a key driver of economic growth, with arrivals surpassing 2 million and revenues reaching USD 2.8 billion by November 2024.

Monthly earnings of over USD 270 million are expected to push annual tourism revenue beyond USD 3 billion, a 56% increase compared to USD 1.8 billion in January–November 2023. Daily tourist arrivals averaged over 10,000, with total arrivals projected to exceed 2.1 million for the year.

These indicators reflect a robust recovery trajectory for Sri Lanka’s economy, driven by improved fiscal management, increased remittances, and a resurgent tourism sector. The positive trends highlight growing confidence in the country’s economic stability and potential for sustained growth.

Sri Lankan Apparel Exports in 2024: Mixed Trends amid Ongoing Challenges

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By: Staff Writer

December 31, Colombo (LNW): Sri Lanka’s apparel sector, a cornerstone of the country’s export economy, has experienced a mix of achievements and challenges in 2024.

Renowned globally for its commitment to ethical production and sustainable practices, the industry has seen fluctuating export revenues, reflecting both global economic uncertainties and shifting market dynamics.

This analysis delves into the year’s key trends, highlighting the sector’s resilience and areas for improvement.

In November 2024, apparel exports grew marginally by 1% year-on-year (YoY) to US $375 million. This marked the lowest monthly export figure since April’s $293 million and was notably below October’s $397 million.

In contrast, August saw exports surge to $511.13 million—the first time in two years that monthly revenues surpassed the $500 million mark. Despite these fluctuations, cumulative apparel exports during the first nine months of 2024 grew by 5.27% to $4.33 billion.

However, the first half of 2024 recorded a 1.4% decline in garment exports, totaling $2.2 billion compared to the same period in 2023.

The industry remains vital to Sri Lanka’s economy, with the domestic apparel market projected to generate $1.7 billion in revenue by the end of 2024.

This market is expected to expand at an annual growth rate of 2.14% from 2024 to 2029. Sri Lanka continues to gain recognition for its sustainable and ethical apparel production practices, home to pioneering initiatives like the world’s first eco-friendly “Green Garment Factory.

 Growing global demand for sustainable fashion presents opportunities for the country’s apparel manufacturers to maintain their competitive edge.

Market-specific performance has been mixed. In November, exports to the USA increased by 2.05% to $144 million, while exports to the EU (excluding the UK) fell by 8.6% to $115.7 million.

Exports to the UK, however, rose by 4.74% to $60.6 million, and exports to other markets recorded a significant 17.31% increase to $64.6 million.

Compared to the industry’s benchmark year of 2019, November exports showed declines across most major markets, with drops of 18% overall, including a 31% decrease to the USA and 9.4% to the EU.

However, diversification efforts have borne fruit, as exports to other markets grew by 6%. Year-to-date analysis reveals positive YoY growth across all major markets except the EU.

Exports to the USA rose by 6.25% to $1.73 billion, to the UK by 9.37% to $626 million, and to other countries by 9.4% to $702.5 million.

Despite this, total exports in the first nine months of 2024 remained 10.5% lower than in 2019, emphasizing the need for strategic initiatives to reclaim lost ground.

As Sri Lanka’s apparel sector navigates a challenging global landscape, its strengths in sustainability and market diversification remain crucial for future growth.

EV Import exploits Migrant Worker Scheme flouting basic rules

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By: Staff Writer

December 31, Colombo (LNW): A special audit by the National Audit Office (NAO) has revealed significant irregularities in Sri Lanka’s controversial electric vehicle (EV) import scheme for migrant workers.

The program, initiated by the Foreign Employment Ministry, was designed to allow Sri Lankan expatriates to import EVs based on their foreign remittances.

 However, the audit exposed extensive misuse, with just two out of 31 registered institutions controlling 64% of the issued permits.

According to the NAO report, Auto Capital Investment (Pvt) Ltd and Overland Auto Mobile facilitated 335 and 305 permits, respectively, amounting to 640 out of the total.

Despite 510 licensees importing EVs under the scheme by June 30, only 375 vehicles were registered with the Department of Motor Traffic (DMT) as of July 9. Of these, 84 vehicles were transferred to third parties, violating the scheme’s intent.

The audit also highlighted that only 28.6% of the permit holders had registered with the Sri Lanka Bureau of Foreign Employment, a basic requirement of the scheme.

 Among the categories of migrant workers who benefited, seafarers topped the list with 164 permits, followed by managers (150) and directors (96). Others included engineers (78), officers (61), consultants (24), three doctors, and even an international cricket umpire.

The parliamentary Committee on Ways and Means had earlier uncovered that 119 electric cars, valued at nearly Rs. 1,200 million, were imported by misusing permits. Shockingly, a single importer was responsible for 75 of these vehicles.

The scheme, initially intended to support migrant workers, was instead exploited by vehicle importers in collaboration with corrupt officials. They used the permits to bring luxury EVs into Sri Lanka, bypassing the program’s original purpose, and sold them on the local market.

The scandal extended to policy mismanagement. Initially, the government had sought advice from global manufacturers to ensure the scheme’s sustainability.

However, subsequent changes removed key safeguards, such as manufacturer warranties and price caps, enabling the importation of ultra-luxury vehicles. This policy shift disproportionately benefited wealthy individuals, further undermining the program’s integrity.

The findings have sparked outrage. Auditor General W.P.C. Wickremaratne has submitted a detailed report to parliament, with further updates expected after the November 2024 general elections.

The Committee on Ways and Means has directed authorities to take immediate action against those involved, including complicit state officials.

The scandal has prompted calls for tighter regulations. New guidelines were issued by the previous government to manage the scheme, capping vehicle values at $25,000 to prevent misuse. However, motor traders have lamented the delayed response, likening it to “shutting the stable door after the horse has bolted.”

As investigations continue, the fraudulent activity serves as a stark reminder of how programs meant to benefit vulnerable groups can be hijacked for profit. Ensuring transparency and accountability in such initiatives is critical to preventing similar abuses in the future.