December 30, Colombo (LNW): As Sri Lanka continues to experience unusually hot weather, health experts are urging the public to take extra precautions to protect themselves from the potentially harmful effects of the intense heat.
Dr. G. Wijesuriya, Deputy Director General of Health Services, has issued a clear warning, stressing the importance of avoiding direct exposure to the sun, particularly during the peak heat of the day.
He emphasised that staying hydrated is crucial during these sweltering conditions, as the risk of dehydration rises significantly in such extreme temperatures.
Dr. Wijesuriya highlighted that certain groups, such as young children and the elderly, are particularly vulnerable to the adverse effects of the heat.
He advised that these individuals, in particular, should avoid spending time in the sun and ensure they stay in cool, shaded areas whenever possible.
For those who must be outdoors, whether for work, exercise, or other activities, Dr. Wijesuriya strongly recommended taking frequent breaks to rest and rehydrate.
He urged people to drink plenty of fluids, especially water, throughout the day, to help combat the dehydrating effects of the heat.
December 30, Colombo (LNW): General Shavendra Silva is set to retire from his role as Chief of Defence Staff (CDS) and from active duty in the Sri Lanka Army on January 01, 2025.
Appointed as the 8th CDS of Sri Lanka on June 01, 2022, General Silva has built an extraordinary career spanning more than 40 years, marked by remarkable achievements and unwavering dedication to his country.
Throughout his tenure in the military, he served with distinction in numerous high-ranking positions, culminating in his leadership of the country’s armed forces.
Before assuming the position of Chief of Defence Staff, General Silva served as the Acting CDS and the 23rd Commander of the Sri Lanka Army. He was the first officer in Sri Lanka’s military history to hold the rank of four-star General and command the Army, a role he took on with great responsibility and commitment.
His career trajectory, beginning as a Second Lieutenant and ascending steadily through the ranks, exemplifies a model of military leadership and dedication.
During his career, General Silva held several key positions, including Chief of Staff of the Sri Lanka Army, Colonel of the Regiment for the Gajaba Regiment, and leader of the Special Forces and Commando Regiments, two of the most elite units within the Army.
His strategic acumen was also recognised in his roles as Adjutant General and Director General of Operations at the Army Headquarters.
A seasoned and battle-hardened Infantry Officer, General Silva is best known for his leadership during the final stages of the civil war in Sri Lanka. He commanded the Air Mobile Brigade and led the 58 Division, which, under his guidance, played a pivotal role in the Wanni Humanitarian Operation.
This operation ultimately brought an end to the 30-year-long civil conflict in 2009, securing a hard-earned peace for the nation. His leadership in this operation remains a cornerstone of his military legacy.
Following the conclusion of the war, General Silva achieved a historic milestone, becoming the youngest officer in Sri Lanka’s military history to be promoted to the rank of Major General.
He went on to command the 53 Division, widely recognised as the Reserve Strike Force (RSF), further solidifying his reputation as one of the most accomplished military leaders in the country.
Over the years, General Silva has earned numerous accolades for his bravery and outstanding service. He is the recipient of an exceptional number of gallantry awards, including the Weera Wickrama Vibushanaya (WWV), Rana Wickrama Padakkama (RWP), and Rana Soora Padakkama (RSP) – making him the only officer in the history of the Sri Lankan Armed Forces to receive three distinct gallantry medals in a single ceremony.
His contributions to the country’s defence are further recognised by the Vishishta Seva Vibhushanaya (VSV) and the Uththama Seva Padakkama (USP), which he received in honour of his exemplary service.
December 30, Colombo (LNW): Showery weather condition is expected to enhance to some extent over Northern, North-central, Eastern and Uva provinces from today (30) for next few days.
Showers or thundershowers may occur at times in Northern, North-Central, Eastern and Uva provinces and in Matale district. Fairly heavy showers above 75 mm can be expected at some places in these areas.
Showers or thundershowers will occur at several places elsewhere during the afternoon or night. Fairly heavy showers about 75 mm can be expected at some places in Western, Sabaragamuwa and Southern provinces.
Fairly strong winds of about (30-35) kmph can be expected at times over Northern, Eastern and North-central provinces.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Southern 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 several places in the sea areas extending from Mannar to Pottuvil via Kankasanthurai, Trincomalee and Batticaloa. Showers or thundershowers may occur at a few 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 (20-35) kmph. Wind speed can increase up to (40-50) kmph at times in the sea areas off the coast extending from Colombo to Batticaloa via Puttalam, Kankasanthurai and Trincomalee.
State of Sea:
The sea areas off the coast extending from Colombo to Batticaloa via Puttalam, Kankasanthurai and Trincomalee will be fairly rough at times. The other sea areas around the island may be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
The government will amend the Oath of the Public Service, effective January 1, 2025, in line with the launch of the ‘Clean Sri Lanka’ programme: Chaired by President Anura Kumara Dissanayake, the initiative aims to strengthen Sri Lanka’s social and economic sustainability and improve government efficiency: A Presidential Task Force with 18 members will oversee its implementation.
General Shavendra Silva is set to retire as Chief of Defence Staff (CDS) and from active service in the Sri Lanka Army on January 1, 2025: Appointed CDS in June 2022, he has had a distinguished career spanning over 40 years, including key roles such as Commander of the Sri Lanka Army and Chief of Staff: Known for his leadership during the Wanni Humanitarian Operation in 2009, he is the recipient of numerous gallantry awards and distinguished service medals, marking an exceptional military legacy.
Thisara Iroshana Nanayakkara, the brother of former Foreign Employment Minister Manusha Nanayakkara, has been arrested by the Criminal Investigation Department (CID) over the allegation of defrauding about Rs. 3 million from individuals by promising career opportunities in Finland: The arrest took place in Bibile: Nanayakkara has been remanded until January 6, 2025.
The Human Rights Commission of Sri Lanka (HRCSL) has urged President Anura Kumara Dissanayake to ensure its officials are granted access to inspect the welfare of 115 Myanmar asylum seekers, including over 40 children, detained in Mullaitivu: The HRCSL’s attempts to visit the site were blocked by Air Force officials, citing instructions from the Immigration Department: The Commission emphasised its statutory mandate to monitor detention conditions and protect the rights of all individuals in Sri Lanka, urging the President to direct relevant authorities to facilitate access for a thorough investigation.
Minister of Rural Development, Social Security, and Community Empowerment, Upali Pannilage said a special rural poverty alleviation programme will be launched in January 2025: It aims to implement a development plan for each village, involving active participation from local residents: The programme will be a joint effort between ministries, local governments, provincial councils, and both private and public sectors across all districts.
The MSME Chamber of Sri Lanka has called for the immediate removal of a circular issued by the Central Bank of Sri Lanka (CBSL), which states that the suspension of ‘Parate’ law execution will end by March 31, 2025: Media Secretary Susantha Liyanaarachchi criticised the CBSL for aligning with the Sri Lanka Bank Association’s view and urged the issuance of a new circular reflecting the Deputy Minister of Finance’s statement on debt repayment and legal actions: The Chamber warned of potential consequences for banks if the circular is not revised.
As of December 29, Sri Lanka Customs has cleared 75,000 metric tonnes of imported rice, following the government’s decision to allow rice imports without permits: This includes 32,000 metric tonnes of Samba rice and 43,000 metric tonnes of Nadu rice: Customs spokesman Seevali Arukgoda added that efforts are ongoing to expedite the release of additional shipments.
The Korea International Cooperation Agency (KOICA) has proposed a Rs. 2.4 billion initiative to enhance conservation efforts at Sigiriya, a UNESCO World Heritage site: Under the supervision of Sri Lanka’s Central Cultural Fund and Department of Archaeology, the project includes upgrading access roads, constructing an alternative route, and developing facilities like a museum and restaurant: An MoU between KOICA and the Central Cultural Fund is expected: A meeting on the project was held on December 27, chaired by Deputy Minister Prof. Hiniduma Sunil Senevi.
The Archdiocese of Colombo has called for an investigation into a complaint filed by activist Namal Kumara, accusing him of defaming Archbishop Malcolm Cardinal Ranjith through a voice recording circulating on social media: Rev. Fr. Jude Krishantha condemned the complaint, alleging that Kumara, an alleged abettor of the Easter Sunday bombings, is plotting another scheme at the behest of a third party: The Archdiocese has requested the Inspector General of Police to investigate and uphold justice for the Cardinal.
Sri Lanka’s Chamari Athapaththu has been nominated for two prestigious ICC 2024 awards: T20I Women’s Cricketer of the Year and ODI Cricketer of the Year: Her consistent batting and leadership have propelled her to global prominence: Other nominees include Wanindu Hasaranga, Kusal Mendis, Smriti Mandhana, and Babar Azam, highlighting the competitive field across categories.
December 29, Colombo (LNW): Former Sri Lankan President Ranil Wickremesinghe has highlighted the potential for Sri Lanka’s economic revival by aligning with India’s rapid growth and technological progress.
Speaking at the 7th Atal Bihari Vajpayee Memorial Lecture in New Delhi, Wickremesinghe emphasized that coupling Sri Lanka’s recovery with India’s sustained development could steer the island nation away from the debt-driven model that dominated its economy for two decades.
Wickremesinghe stressed the importance of the recent 2024 joint statement issued during President Anura Kumara Dissanayake’s visit to India. The statement proposes a shift from dependency on excessive borrowing to a collaborative economic strategy with India.
He pointed out that India’s anticipated emergence as the third-largest global economy by 2040, alongside Tamil Nadu’s projected GDP exceeding $1 trillion, presents a critical opportunity for Sri Lanka to integrate regionally and tap into larger markets.
Sri Lanka’s economic collapse in 2022, triggered by unsustainable debts and a balance of payments crisis, led to the country declaring bankruptcy. India extended emergency assistance with loans worth $4 billion, stabilizing the situation until the International Monetary Fund (IMF) bailout.
However, domestic resistance to deeper economic cooperation with India persisted. Wickremesinghe recalled opposition from trade unions and political parties to initiatives like the Trincomalee oil tank farm project. Nonetheless, the pandemic and subsequent economic turmoil softened resistance, paving the way for a political consensus on closer ties with India.
This consensus was evident in 2023 when Sri Lankan parties united to support the India-Sri Lanka economic partnership vision. The National People’s Power party, previously a critic of these linkages, also endorsed the 2024 joint statement during President Dissanayake’s recent visit.
Wickremesinghe noted that Sri Lanka’s reliance on Chinese loans for large-scale infrastructure projects between 2000 and 2021 exacerbated its economic vulnerabilities. Projects like the Hambantota Port, funded with over $1 billion in Chinese loans, were eventually leased to a Chinese company for 99 years in 2017.
Similarly, the Mattala Rajapaksa International Airport, financed by nearly $200 million in Chinese loans, has faced criticism for its inefficiencies.
Efforts to establish a comprehensive economic partnership agreement (CEPA) between India and Sri Lanka date back to 2001 under Atal Bihari Vajpayee’s leadership. Despite progress in forming a joint study group and negotiations during Wickremesinghe’s tenure as Prime Minister, both leaders’ exits from office in 2004 stalled the initiative.
While a Free Trade Agreement has been in place since 2000, a CEPA remains unrealized, despite its potential to deepen economic collaboration.
As Sri Lanka seeks a sustainable growth model, Wickremesinghe’s vision underscores the strategic significance of leveraging India’s economic momentum. This evolving partnership marks a pivotal moment in the bilateral relationship, offering a pathway for Sri Lanka to transition from its debt-ridden past to a more resilient future.
December 29, Colombo (LNW): S&P Global Ratings has maintained Sri Lanka’s foreign currency sovereign credit rating at selective default (SD) due to the unresolved restructuring of a $175 million SriLankan Airlines bond guaranteed by the government. Meanwhile, newly restructured sovereign bonds have been rated at CCC+, reflecting modest improvements in the country’s financial outlook.
Sovereign Bond Restructuring
Sri Lanka recently completed a significant debt exchange, replacing $12.55 billion of its international sovereign bonds (ISBs) with new instruments to reduce external debt pressure. Bondholders representing 97.8% of ISBs consented to the exchange, facilitating the restructuring process. The restructured debt includes governance-linked bonds, macro-linked bonds, and past-due interest bonds with varying maturity periods and step-up coupon structures.
Through this restructuring, Sri Lanka aims to achieve a $9.5 billion reduction in debt service payments over four years under its IMF-backed Extended Fund Facility. The process has also extended the average bond maturity by over five years while reducing coupon rates by 31%.
Unresolved SriLankan Airlines Bond
Despite these steps, the $175 million SriLankan Airlines bond, which is in default, remains a sticking point. S&P has stated it will revisit Sri Lanka’s long-term foreign currency rating after the bond’s restructuring is complete.
New Bond Ratings and Local Currency Outlook
New sovereign bonds have been rated CCC+, signifying that Sri Lanka’s creditworthiness remains vulnerable but is not in imminent crisis. The local currency rating has also been upgraded to CCC+, with a stable outlook. This reflects progress in debt restructuring balanced against ongoing fiscal and economic risks.
S&P highlighted three categories of new bonds issued post-restructuring:
Governance-Linked Bonds (GLBs): Maturing in 2035, these include performance-based interest adjustments. If specific fiscal targets are met, the coupon rate could decrease by 75 basis points by 2028.
Step-Up Bonds: Maturing in 2038, these offer gradually increasing coupons, starting at 1.0% and rising to 3.5% by maturity. Payments may also be made in local currency under certain conditions.
PDI Bonds: Maturing in 2030, these cover past-due interest and feature a fixed coupon of 4.0%.
Risks and Future Scenarios
S&P’s stable outlook for local currency ratings balances fiscal improvements against risks of inflation, rising interest burdens, and weak fiscal performance. The possibility of further domestic debt restructuring could result in a downgrade. Conversely, stronger-than-expected economic and fiscal improvements could enhance credit ratings.
Completion of the SriLankan Airlines bond restructuring and sustained economic reforms are crucial for a rating upgrade. Post-restructuring ratings are likely to fall in the CCC or low B categories, contingent on the government’s ability to manage its restructured debt effectively.
While Sri Lanka’s recent debt restructuring has alleviated some financial pressure, the unresolved SriLankan Airlines bond and broader fiscal challenges underscore lingering vulnerabilities. The country’s future credit trajectory will depend on its ability to stabilize its economy, achieve fiscal targets, and restore investor confidence.
December 29, Colombo (LNW): An audit report on the Water Supply and Sanitation Improvement Project reveals that the Sri Lankan Government has incurred losses of approximately Rs. 1.44 billion due to delays, inefficiencies, and mismanagement.
The report highlights significant setbacks in 38 urban and rural water supply schemes, sanitation projects for schools and indigenous communities, and rehabilitation efforts, with time extensions granted up to seven times. Delays ranged from 330 to 2,158 days despite measures to support contractors.
Launched in December 2015, the project aimed to expand access to piped water and improve sanitation in selected districts, alongside building institutional capacity. It was initially slated for completion by December 2020 but extended to December 2023.
With a total estimated cost of $183.9 million (Rs. 27,590 million), $165 million was funded by the International Development Association, while Rs. 2,840 million came from the Sri Lankan Government and community contributions.
Key issues included uneconomical investments, procurement violations, and cost overruns. For instance:
Kotiyakumbura Sand Filter Tank: Rs. 1.7 million was wasted on tanks that were never used.
Kilinochchi Water Supply Project: Rs. 599 million was lost due to improper project subdivision that violated procurement guidelines.
Mulankavil Water Supply Project: Additional work orders and scope changes increased costs by Rs. 267 million.
Community Contribution Shortfall: Rs. 551 million in expected contributions for rural water projects remains uncollected.
Direct Payments to Subcontractors: Rs. 19 million was paid directly to subcontractors in the Kilinochchi District, violating contract conditions.
These inefficiencies, compounded by improper project planning, contractor underperformance, environmental issues, and unforeseen challenges like the COVID-19 pandemic and economic crisis, severely hindered progress.
The National Audit Office has called for immediate action, urging thorough investigations, stricter procurement processes, and enhanced financial oversight to prevent further losses.
Despite the setbacks, a senior official stated that most sub-projects are now substantially completed. The official attributed the delays to unavoidable challenges, emphasizing the need for time extensions to support contractors under the Water Supply and Sanitation Sector Improvement Project (WaSSIP).
December 29, Colombo (LNW): Sri Lanka has launched initiatives to expand two key airports, aiming to enhance tourism and international connectivity.
Jaffna International Airport Expansion
The Airport and Aviation Services of Sri Lanka Ltd. (AASL) has invited Expressions of Interest (EOI) for the expansion of Jaffna International Airport (JIA) in Palali, targeting a January 29, 2025, deadline for submissions.
The plan is to upgrade the airport to accommodate larger aircraft, such as the Airbus A330, which has a passenger capacity of 280-330, compared to the current ATR aircraft that carries about 70 passengers.
Renamed as Jaffna International Airport in 2019 and declared Sri Lanka’s third international airport, JIA began operations with flights from Chennai.
The initial redevelopment was jointly funded by Sri Lanka and India. However, the airport currently handles only two to three flights per week. Sri Lanka hopes to attract more tourists from India and promote Jaffna as a growing tourist destination.
To ensure neutrality, proposals are restricted to consultancy firms or joint ventures from countries outside the Colombo Flight Information Region (FIR)—excluding India, the Maldives, Indonesia, and Australia—citing potential conflicts of interest.
Eligible bidders must have completed at least one feasibility study for an international airport in the last decade.
Bandaranaike International Airport (BIA) Development
In parallel, AASL has extended the deadline to March 18, 2025, for Japanese firms to bid on Phase II Stage 2-Package A1 of the Bandaranaike International Airport (BIA) Development Project.
Funded by the Japan International Cooperation Agency (JICA), this project involves constructing a main terminal building, two new piers, and related works, including an elevated roadway.
The project initially began in December 2020 under Japan’s Taisei Corporation, with a scheduled completion by December 2023. However, due to Sri Lanka’s economic crisis and JICA freezing funding, the project was terminated in December 2022, with only six percent progress achieved.
Now back on track following Sri Lanka’s debt restructuring efforts, the re-advertised tender seeks to complete the remaining work using materials and equipment already procured by Taisei.
The BIA expansion is anticipated to take 30 months once the contract is awarded. While Sri Lanka is utilizing an existing JICA loan to fund the construction, it has requested additional financing, which is currently under review by the Japanese government and JICA.
These strategic developments aim to bolster Sri Lanka’s aviation infrastructure, stimulate tourism, and support economic recovery.
December 29, Colombo (LNW): As of today (29), Sri Lanka Customs has successfully cleared a total of 75,000 metric tonnes of imported rice, following the government’s decision to temporarily waive import permits in response to the ongoing rice shortage.
The move, which was implemented on December 03, 2024, aimed to mitigate the effects of adverse weather conditions that have significantly impacted local rice production.
Media Spokesperson and Additional Director General of Sri Lanka Customs Seevali Arukgoda said the imported rice consists of 32,000 metric tonnes of Samba rice and 43,000 metric tonnes of Nadu rice.
These shipments are part of a larger effort to ensure the steady availability of rice in local markets and alleviate supply chain pressures caused by the recent production shortfalls.
Arukgoda also assured that further steps are being taken to speed up the clearance process for additional rice imports, with the government working closely with Customs to facilitate the swift release of remaining shipments.
The decision to ease import regulations has been welcomed by many, as it provides a vital lifeline to the local market, helping to stabilise prices and ensure adequate supply for consumers.
December 29, Colombo (LNW): The Indonesian naval vessel KRI Sultan Iskandar Muda-367 docked at the Port of Colombo yesterday (28), marking the beginning of an official visit to Sri Lanka.
The ship was welcomed by the Sri Lanka Navy with full naval honours, in line with longstanding naval customs and traditions.
The KRI Sultan Iskandar Muda-367 is a state-of-the-art warship measuring 90.71 metres in length, and it is manned by a dedicated crew of 120 personnel.
The ship is under the command of Commander Anugerah Annurullah, who is leading the ship’s operations during its visit to Sri Lanka.
Throughout their stay in Colombo, the crew will have the opportunity to explore some of Sri Lanka’s most renowned tourist sites, deepening cultural ties between the two nations.
The visit is expected to further enhance the strong relationship between the Sri Lanka Navy and the Indonesian Navy, built on mutual cooperation and shared maritime interests.
The KRI Sultan Iskandar Muda-367 is scheduled to conclude its official visit and depart from Sri Lankan waters on 30th December.
