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.
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.
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.”
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.
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.
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.
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.
December 31, Colombo (LNW): Hambantota International Port (HIP), operated by the Hambantota International Port Group (HIPG), is making strides to enhance its container operations and emerge as a central hub in regional maritime trade.
The port’s new focus on the relay cargo market, alongside its existing transshipment operations, aligns with Sri Lanka’s ambition to handle 10 million TEUs between 2025 and 2026.
Relay cargo, which involves transferring containers between vessels of the same carrier at an intermediate port, optimizes shipping routes and reduces transit times.
Unlike transshipment—where containers are moved between different carriers—relay cargo offers efficiency gains for shipping lines. HIP’s entry into this market is supported by its strategic location on Sri Lanka’s southern coast, at the crossroads of major maritime routes.
HIPG CEO Wilson Qu emphasized the port’s unique geographical advantage and its ability to attract customers who may not have previously considered Sri Lanka a viable option. He highlighted HIPG’s commitment to competitive rates, exceptional service, and continuous infrastructure investments as key drivers of its growth strategy.
A significant part of the port’s plan involves the introduction of advanced crane technology in February 2025.
This upgrade will enable HIP to handle up to one million twenty-foot equivalent units (TEUs) annually, further enhancing its operational capacity. Additionally, the port is exploring feeder operations with Colombo to expand its service offerings.
HIPG’s “seaside strategy” targets untapped markets and aims to boost connectivity across the region. A particular focus is on transshipment opportunities from BIMSTEC countries, where over 70% of containerized cargo bypasses Sri Lankan ports.
By improving operational efficiency and launching aggressive marketing campaigns, HIP aims to capture a significant share of this market.
On the “landside,” HIPG is developing an industrial zone to generate gateway cargo and attract shipping liners.
The industrial zone recently secured its first investment—a sponge mattress factory targeting export markets in the U.S., Europe, and Canada.
This initiative is expected to create employment opportunities and foster collaborations between local entrepreneurs and international businesses. Additional agreements for industrial investments are anticipated in 2025.
The industrial zone is a critical component of HIPG’s strategy to move beyond its geographic limitations. It complements the relay cargo initiative by attracting industries that will generate consistent export volumes, thereby driving sustained growth for the port.
Wilson Qu reiterated that HIP’s expansion efforts represent a significant opportunity for Sri Lanka to solidify its position as a competitive player in global logistics. By leveraging its location, innovative operations, and targeted investments, Hambantota International Port aims to become a preferred choice for shipping lines and industrial investors in the region.
Through its combined seaside and landside strategies, HIP is positioning itself as a comprehensive logistics hub capable of transforming Sri Lanka’s maritime industry and contributing to the nation’s broader economic goals.
December 31, Colombo (LNW): In response to the ongoing shortage of raw rice in the Sri Lankan market, the Consumer Affairs Authority (CAA) has announced plans to launch a series of inspections across major rice mills and storage facilities.
The aim of these inspections is to investigate the reasons behind the supply issues and to ensure that there is no hoarding or illegal stockpiling of rice.
Chairman of the CAA, Hemantha Samarakoon, revealed that the inspections will be focused on key rice-producing regions, including Hambantota, Matara, Monaragala, Embilipitiya, and Ampara.
These areas are vital to the nation’s rice production and storage, and the inspections will seek to identify any discrepancies or irregularities in the distribution chain.
Additionally, Samarakoon stated that the CAA will collaborate with district secretaries in these regions to assist with the investigations and facilitate the process.
Meanwhile, Sri Lanka Customs has confirmed that 12,000 metric tonnes of imported rice are expected to arrive at the Port of Colombo in the near future.
Customs spokesperson Seevali Arukgoda clarified that this shipment is part of the 75,000 metric tonnes of imported rice that has already been processed and released into the market.
December 31, Colombo (LNW): Emirates airline is set to enhance its services between Colombo and Dubai with the launch of an additional scheduled flight, beginning January 02, 2025.
This new addition marks a significant increase in seat capacity and reflects the airline’s commitment to supporting Sri Lanka’s ambitious goals to boost tourism in the coming year.
The new flight, designated as EK654/655, will operate six times a week, offering a 30 per cent increase in the total seat capacity on this popular route.
This expanded service is expected to play a crucial role in Sri Lanka’s plans to attract more international tourists in 2025, contributing to the country’s recovery and growth in the travel sector.
The flight will depart from Dubai International Airport (DXB) every day except Wednesdays, with the first leg, EK654, leaving Dubai in the evening and arriving in Colombo the following morning.
From 1st April 2025, an additional flight will be introduced on Wednesdays, providing a seventh weekly service on this route.
The added flight can accommodate up to 360 passengers, offering a mix of luxurious travel options, including eight First Class suites, 42 Business Class seats, and 310 Economy Class seats.
This spacious configuration is designed to meet the demands of both leisure and business travellers, further strengthening Emirates’ position as a key player in connecting Sri Lanka with the world.
Since its first flight to Sri Lanka in April 1986, Emirates has become a crucial link for travellers flying to and from Colombo, having carried more than 12 million passengers over the years.
