October 04, Colombo (LNW): Sri Lanka may soon witness a significant leap in its domestic aviation landscape, with plans underway to launch a scheduled airline service using mid-sized aircraft capable of seating between 50 and 70 passengers.
The initiative, expected to take flight within the next six months, aims to resolve a persistent challenge that has long hindered the equitable spread of tourism across the island.
The proposal was revealed by Peter Hill, a veteran of the aviation industry and former Chief Executive Officer of SriLankan Airlines, during a high-level panel discussion at the International Tourism Leaders Summit 2025.
The event, held at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo, brought together global and local tourism stakeholders to explore the theme of “Tourism Innovation and Connectivity for the Future of Sri Lanka Tourism.”
Hill, who is actively involved in shaping the prospective airline, addressed a critical obstacle facing the industry: the time-consuming and often impractical overland travel to key regions such as Jaffna, Trincomalee, and the Eastern coastline.
While these destinations boast rich cultural heritage and natural beauty, they remain underutilised due to poor internal connectivity.
“Travelling to many parts of the country still takes far too long,” Hill noted, highlighting how the lengthy journeys by road dissuade tourists from venturing beyond the well-trodden routes. A journey from Colombo to Jaffna, for instance, can exceed nine hours by car, while the same trip would take less than an hour by air.
The solution, according to Hill, lies in introducing the right type of aircraft—not the costly helicopters and limited-capacity air taxis currently available, but comfortable, efficient turboprops with room for both passengers and their luggage. He emphasised that such aircraft are already widely used in regional aviation markets around the world and are easily obtainable.
This shift, he argued, could dramatically improve the tourist experience and stimulate economic activity in underdeveloped regions by opening up quicker, more reliable travel options. Tourists, he added, are increasingly willing to pay for time-saving alternatives that maximise their experience within limited itineraries.
Although the concept is still in the planning phase, Hill confirmed that discussions with potential investors are ongoing, and that regulatory adjustments would be necessary to transition from ad-hoc charter flights to a fully-fledged scheduled carrier. He acknowledged that the project would require support from government authorities to move forward smoothly.
“There’s still a journey ahead in terms of permissions and logistics, but if all goes to plan, we could see this become a reality in the next six months,” Hill stated, signalling cautious optimism. “It’s something the country badly needs, and the timing is right.”
New Domestic Airline Could Transform Travel and Tourism in Sri Lanka Within Months
Sri Lanka and Antigua and Barbuda Forge New Diplomatic Ties
October 04, Colombo (LNW): Sri Lanka has formally entered into diplomatic relations with the Caribbean nation of Antigua and Barbuda, marking a new chapter in its international engagement strategy.
The agreement, which took immediate effect upon signing, was concluded on Friday in Washington D.C.
Representing their respective countries, Sri Lanka’s Ambassador to the United States, Mahinda Samarasinghe, and Antigua and Barbuda’s Ambassador, Sir Ronald Sanders, officiated the signing of the accord.
The move reflects both nations’ shared interest in strengthening their global partnerships and broadening the scope of bilateral cooperation.
The establishment of diplomatic ties is expected to pave the way for deeper engagement across multiple fronts—including political dialogue, trade and investment, tourism, education, and cultural exchange.
It also provides a platform for both countries to collaborate more closely in multilateral forums, particularly on global issues such as climate change, sustainable development, and maritime affairs, where small and developing nations often share common ground.
This new diplomatic relationship highlights Sri Lanka’s efforts to diversify its international partnerships beyond traditional regional alignments, with a strategic connection to South Asia being offered to Antigua and Barbuda.
Officials from both governments have welcomed the agreement as a mutually beneficial step that reflects a spirit of friendship and shared values.
Future engagements between Colombo and St. John’s are likely to include the exchange of high-level visits and collaborative programmes aimed at building stronger institutional and people-to-people links.
Sri Lanka Expands Seaplane Network as Domestic Aviation Push Gains Momentum
October 04, Colombo (LNW): Sri Lanka has taken a significant step towards revitalising its domestic aviation sector, with the Civil Aviation Authority announcing the clearance of 22 additional terminals for seaplane operations following thorough safety and infrastructure inspections.
The announcement marks a notable expansion in water-based aviation, which is being actively promoted as part of a broader strategy to enhance connectivity and support tourism-led economic growth.
The Authority also revealed that regulatory processes are in motion to authorise seaplane activity in the vicinity of the Colombo Port City, a key hub in the capital’s ongoing urban and commercial development.
In a related move, two new helipads are set to be introduced in central Colombo, aimed at facilitating faster intercity travel and boosting high-end tourism services. These developments are part of a growing partnership between the state and private investors to upgrade Sri Lanka’s domestic aviation landscape, with particular emphasis on attracting tourists to lesser-accessible regions of the country.
Adding to the momentum, a new seaplane route connecting Bandaranaike International Airport in Katunayake to central Colombo was officially launched yesterday. The service, which utilises Beira Lake as a designated water aerodrome, is expected to significantly cut down travel time for visitors and business travellers arriving in the capital.
Seaplane operations are not entirely new to Sri Lanka. A similar service briefly operated in 2011 and 2012 but was discontinued amid tightening national security protocols and operational hurdles.
Officials now believe the sector is ready for a relaunch, with modernised safety frameworks, improved infrastructure, and growing interest from private operators creating favourable conditions for sustained growth.
Sri Lanka’s Foreign Debt Reaches US$ 37 Bn as MPs Call for Enhanced Financial Oversight
October 04, Colombo (LNW): Sri Lanka’s foreign borrowing has surged to a staggering USD 37 billion—approximately Rs. 19.6 trillion—prompting fresh scrutiny from the nation’s parliamentary Committee on Public Finance (CoPF).
The figure was disclosed during a recent session of the CoPF, chaired by MP Dr Harsha de Silva.
Officials from the State Debt Management Office, who appeared before the committee, confirmed the current debt total and clarified that all international borrowing activities are now administered exclusively by their office.
This centralisation of debt operations is intended to provide greater control and oversight, though questions remain about the capacity and technical expertise within the office to manage such a complex and high-stakes portfolio.
Dr de Silva expressed concern over the scale of the debt and emphasised the urgent need to strengthen institutional capacity within the debt management apparatus.
He stressed that addressing the country’s financial vulnerabilities would require not only policy reform but also the recruitment and retention of skilled professionals capable of navigating the complexities of global financial markets.
According to CoPF discussions, Sri Lanka’s current foreign debt obligations span multiple creditors, including bilateral partners, multilateral lenders, and international bondholders. The committee underscored that future borrowing must be approached with greater strategic clarity, balancing immediate fiscal needs with long-term sustainability.
Committee members also raised questions about transparency in past borrowing decisions and the lack of detailed public reporting on loan terms, interest rates, and repayment timelines.
Some MPs urged the introduction of new legislation to increase parliamentary oversight of foreign borrowing, suggesting that a more rigorous framework could prevent the accumulation of unsustainable debt in future.
Sri Lanka Urged to Prioritise Energy Reform Amid Broader Economic Overhaul: World Bank
October 04, Colombo (LNW): Sri Lanka must undertake sweeping reforms to its energy sector to address persistently high energy costs, the World Bank has cautioned, citing the nation’s vulnerability compared to its regional counterparts.
The call for reform emerged during a series of high-level discussions between a World Bank mission and leading parliamentary oversight committees in Colombo.
The visiting delegation, headed by World Bank Country Manager Gevorg Sargsyan, held separate consultations with several key parliamentary bodies responsible for fiscal oversight and governance. Initial talks were held with Dr Harsha de Silva, Chair of the Committee on Public Finance (CoPF), followed by a joint session involving Dr Nishantha Samaraweera of the Committee on Public Enterprises (COPE), Kabir Hashim of the Committee on Public Accounts (COPA), and Wijesiri Basnayake of the Committee on Ways and Means. Other committee members also took part in the engagements.
According to a statement from the Department of Communication of Parliament, the Sri Lankan delegation expressed gratitude for the World Bank’s sustained support in the country’s development efforts. In turn, World Bank representatives emphasised the pressing need to restructure the energy sector, which continues to operate with significantly higher costs than comparable nations in the region—placing a heavy burden on both the economy and consumers.
Energy was only one aspect of a broader conversation that touched upon the country’s urgent need to modernise its public sector. World Bank officials drew attention to the fact that Sri Lanka hosts one of the largest public workforces in the region, despite offering relatively modest compensation. The institution urged that this imbalance be addressed through improved efficiency, targeted restructuring, and enhanced productivity.
Discussions also delved into key sectors identified as critical for national growth, including ports, logistics, tourism, education, agriculture, and entrepreneurship. Enhancing women’s participation in the workforce, creating employment opportunities, and strengthening mechanisms for poverty alleviation were also highlighted as areas requiring strategic reform.
Of particular note was the conversation surrounding revenue generation and the need for more efficient collection systems. The World Bank underscored the importance of establishing well-designed Public-Private Partnerships (PPPs) as a pragmatic alternative to full-scale privatisation. Delegates presented examples of successful PPP models implemented in other countries, illustrating how such partnerships can contribute to improved service delivery and long-term economic sustainability.
Committee members also briefed the delegation on their respective roles and the legislative tools at their disposal for ensuring government accountability and transparency. Both sides affirmed their commitment to deepening institutional collaboration aimed at propelling Sri Lanka towards a more resilient and inclusive economic future.
Also in attendance at the meetings were Stephan Massing, Senior Operations Officer at the World Bank Group; Victor Anthonypillai, Senior Country Officer at the International Finance Corporation (IFC); and M. Jayalath Perera, Director of Legislative Services and Acting Director of Communications for Parliament.
Atmospheric conditions favourable for evening thunderstorms: Heavy showers above 100 mm expected in several provinces
October 04, Colombo (LNW): Atmospheric conditions are favourable for thunderstorms in the evening.
Therefore, general public is advised to take adequate precautions to minimise damages caused by heavy rain, strong winds and strong lightning during thundershowers.
Showers or thunder showers will occur at several places in most parts of the island after 1.00 p.m.
Heavy showers above 100 mm are likely at some places in Northcentral, Eastern, Central and Uva provinces.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the island in the evening or night.
Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph.
State of Sea:
The sea areas around the island can be slight to moderate.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Elon Musk Becomes World’s First $500bn Individual
Elon Musk has made history by becoming the first person ever to achieve a net worth of more than $500 billion (£370.9bn), according to the Forbes billionaires index.
The Tesla boss’s fortune briefly touched $500.1bn on Wednesday afternoon in New York before slipping back to just over $499bn later in the day.
Musk’s wealth surge is attributed not only to the continued rise in Tesla’s valuation but also to the growing worth of his other ventures, including the artificial intelligence start-up xAI and his rocket company SpaceX, which have both seen strong momentum in recent months.
This milestone further cements Musk’s position as the world’s richest person, placing him well ahead of rivals in the global tech sector. His half-trillion-dollar net worth underscores the scale of influence and dominance Musk holds across electric vehicles, space exploration, and artificial intelligence—industries shaping the future of technology and innovation.
Leeds International School Matugama Prefects Shine Through Heart-warming CSR Initiative
Rashika Hennayake october 03, Colombo (LNW):
The initiative focused on supporting the students of Mayura Special Needs School, which provides education for children diagnosed with Down syndrome. Senior prefects Gehansa Jayasekara and Sudeesh Rajapakse pioneered the project, working under the guidance of Prefects’ Guild Teacher-in-Charge Mrs. Nilmini Rukshanthi. With careful planning and dedication, the prefects organized fundraising activities, including a popular Hot Dog Stand during the Inter-Leeds Chess Tournament, raising funds to provide a wholesome lunch and stationery supplies for the children.
The project not only brought smiles to the faces of the Mayura students but also encouraged Leeds students to engage in acts of kindness and social responsibility. Participating students, parents, and staff witnessed first-hand the joy of giving back to the community, reinforcing values of compassion and service.
Principal Mrs. Gayana Jayasundara expressed her pride, stating, “Our Prefects’ Guild has exemplified leadership with heart. This initiative reflects the ethos of Leeds International School Matugama, where academic excellence goes hand in hand with social responsibility.”
Parents and students who contributed to the fundraising efforts were acknowledged for their generosity, highlighting the power of community collaboration in making a tangible difference.
The CSR project concluded with interactive activities and play sessions with the Mayura students, leaving lasting memories and a strong message: even small gestures of kindness can spark big changes in society.
Sri Lanka’s FDI Ambitions Stumble amid Policy Instability
Sri Lanka’s newly elected government one year ago set an ambitious target to draw US$5 billion in foreign direct investment (FDI) in 2025. But a growing body of investor testimony, independent reports, and hard data suggest that without deep institutional reforms, this goal may prove aspirational at best.
In early 2025, official data appeared promising: the Board of Investment (BOI) claimed realized FDI of US$203 million in Q1, a rise of 90 percent over the same period in 2024.
By mid-year, BOI further reported US$507 million in foreign inflows in H1, asserting a 101 percent jump year-on-year.
The BOI also approved 57 investment projects totaling US$569 million, of which US$507 million had been realized.
Yet opposition voices and independent critics challenge the narrative. A prominent parliamentary critic claimed that only US$80 million of the government’s Q1 FDI boasts were genuine, accusing the administration of exaggerating inflow figures.
Earlier in 2025, some government sources had claimed Q1 inflows as high as US$650 million a figure later questioned as inflated.
Taken together, these contradictions underscore a deeper issue: headline figures alone cannot mask systemic weaknesses in Sri Lanka’s investment climate.
A major obstacle is the fractured architecture of investment promotion. The BOI was intended as a “one-stop shop,” but its authority is undermined by overlapping ministries and agencies. Investors frequently flag interdepartmental turf wars, sluggish approvals, and policy flip-flops as a deterrent to large-scale commitments.
Under the Economic Transformation Act (ETA) of July 2024, authorities intended to dismantle the BOI in favor of five new agencies (e.g. Economic Commission, Zones SL, and Office for International Trade). But after the NPP government’s victory in late 2024, implementation has stalled and the BOI continues to muddle along amid institutional ambiguity.
Policy mixed signals compound the problem. In January 2025, President Dissanayake pledged to finalize a US$3.7 billion Sinopec oil refinery the country’s largest FDI project to date.
But in February, Adani Green withdrew from a US$400 million wind project, citing government renegotiation efforts.
The government also abruptly shelved broader SOE privatizations, opting instead for “turnaround reforms” that have left private investors uncertain over the future direction of state control.
Even where policies exist on paper, execution is weak. Land acquisition rules remain restrictive: foreigners are generally barred from land ownership, and peace is disrupted by frequent case-by-case exemptions.
Strategic sectors such as banking, coastal shipping, or gem mining impose strict foreign ownership cap ssometimes entirely prohibiting foreign control.
Further complicating the picture, investors say some sectors are treated differently depending on origin: in renewables, for instance, foreign firms benefit from dollar-denominated tariffs, whereas domestic counterparts are paid in rupees.
These preferential rules stoke perceptions of an uneven playing field.Even globally, FDI flows are under pressure. The UN Conference on Trade and Development (UNCTAD) warns of subdued investment across developing markets in 2025.
Sri Lanka, in that context, cannot rely solely on external tailwinds. Domestically, underlying investment trends remain weak. During late 2024, Sri Lanka’s quarterly net FDI inflows hovered around US$138 million—a modest figure against the backdrop of a US$5 billion annual target.
As of September 2024, net flows were only US$45 million, compared to US$384 million in the prior quarter.
Moreover, investment as a share of nominal GDP has slipped—falling to 22.9 percent in Q3 2024, down from 27.7 percent previously. This contraction underscores the broader malaise in capital formation.
Sri Lanka’s aspiration to attract US$5 billion in FDI is bold—but at present, it lacks the structural underpinnings necessary for success. A scattergun approach to policy, weak institutional capacity, opaque regulatory practice, and a reluctance to signal continuity discourage serious investors.
To turn rhetoric into results, Colombo must first deliver consistency: strengthen the BOI (or its successor bodies), digitize approvals, clarify sector-specific rules, and protect investment contracts from reversal. Until then, the government’s FDI target risks being more political posturing than plausible outcome.
Sri Lanka’s Current Account Surplus Expands to $2.04 Billion amid Rising Remittances
Sri Lanka’s current account surplus grew sharply during the first eight months of 2025, reaching $2.04 billion, driven by stronger inflows from worker remittances, tourism, and services, according to the latest data from the Central Bank of Sri Lanka (CBSL). The surplus represents a 26.1% year-on-year (YoY) increase from $1.6 billion in the same period last year, despite a widening trade deficit and rupee depreciation.
The CBSL said that while merchandise trade continued to exert pressure, improved inflows from key service sectors and the diaspora offset the shortfall.
In August 2025, Sri Lanka’s trade deficit narrowed slightly to $414 million from $422 million a year earlier, as exports rose 4% YoY to $1.28 billion, outpacing the 2.6% growth in imports to $1.69 billion. However, over the first eight months, the trade deficit widened 19.6% to $4.26 billion, reflecting a faster increase in imports (10.5%) compared to exports (6.7%).
The CBSL also noted a deterioration in the terms of trade, as import prices rose faster than export prices. The Sri Lankan rupee depreciated 3.3% year-to-date against the US dollar by end-September.
While the services sector dipped 5.4% YoY to $291 million in August, cumulative net inflows in services rose 2.3% to $2.66 billion for January–August 2025.
Tourism continued to show resilience. Arrivals surged 20.4% YoY in August to 198,235, though earnings for the month fell 8.2% to $259 million. Cumulative tourism revenue reached $2.3 billion, up 5.7% from the previous year.
Worker remittances remained a major stabilizing factor, climbing 18% YoY in August to $681 million. Total remittances in the first eight months reached $5.1 billion, marking a robust 19.3% increase from $4.3 billion a year ago.
Foreign investment trends were mixed. Government securities recorded a net inflow of $32.9 million in August, compared to a $30 million outflow last year. However, foreign investment in the Colombo Stock Exchange (CSE) turned negative, with a $15.2 million outflow, reversing the $12.7 million inflow seen a year ago.
During January–August 2025, the CSE saw $69 million in net outflows, while investments in government securities surged 155% to $140.2 million. Debt-related inflows rose 34% to $714 million, though portfolio investments fell 39% to $332.6 million.
Despite ongoing external debt servicing, gross official reserves edged up to $6.2 billion by end-August 2025, including the People’s Bank of China swap facility, reflecting cautious but steady external sector stability.