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Banks Must Stop Exploiting Credit Card Users: CBSL Cannot Sit Idle

Rashika Hennayake
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Banks Must Stop Exploiting Credit Card Users: CBSL Cannot Sit Idle

By Adolf

Sri Lankan credit card users are being taken for a ride. While banks and card companies boast about convenience, security, and global acceptance, the reality is starkly different: exorbitant fees, opaque charges, and outright exploitation. Overseas transactions are where the abuse is most glaring, and among the worst offenders is American Express (Amex), which consistently imposes punishing markups and foreign transaction fees far beyond what other cards charge.

Credit card holders pay hidden costs at every step. Foreign exchange conversion fees, service charges, and even stamp duties pile on top of already high interest rates. These fees are often poorly explained—or not disclosed at all—until the user sees the shockingly inflated statement. A simple purchase abroad can end up costing hundreds or even thousands of rupees more than anticipated. And yet, banks continue to profit while consumers bear the brunt.

Adding insult to injury, many local merchants continue to pass on their card processing costs to consumers through extra surcharges of 2.5%–3%, despite clear directives from the Central Bank of Sri Lanka (CBSL) prohibiting this practice. These surcharges violate merchant agreements and exploit customers who may not even realize they are being overcharged. CBSL has warned against this, yet enforcement remains weak, and violations persist unchecked.

CBSL has introduced regulations on financial consumer protection, emphasizing transparency and fair treatment. But statements alone do not protect consumers. Banks continue to impose hefty international fees, and card issuers like Amex, which dominate the high-end credit card segment, profit massively from overseas transactions while offering little real value in return. It is a system rigged against ordinary Sri Lankans.

What is required is decisive, forceful action. CBSL must cap foreign transaction fees, mandate complete transparency on all charges, and penalize banks and merchants who flout the rules. Consumers must be empowered to challenge exploitative practices without fear or bureaucratic delay. Anything less leaves the door open for continued abuse.

Credit cards are meant to be a tool for convenience, mobility, and access to global commerce. Instead, they have become a vehicle for banks and card companies to extract hidden revenue from unsuspecting customers. The time for gentle warnings and regulations on paper is over. CBSL must step up and protect Sri Lankan consumers from being exploited by powerful financial institutions, including the likes of Amex. The bottom line is simple: banks cannot be allowed to treat cardholders as cash cows while regulators remain passive. The financial system’s credibility and public trust are at stake. CBSL must act now, decisively and visibly, or risk being complicit in this exploitation. Ordinary Sri Lankans deserve fair treatment, transparency, and protection—not an endless drain on their wallets every time they swipe their cards abroad

Police Launch New Hotlines for Public to Report Drug-Related Activity

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Police Launch New Hotlines for Public to Report Drug-Related Activity

October 04, Colombo (LNW): Sri Lankan police have introduced a set of new telephone hotlines aimed at strengthening the national crackdown on illegal narcotics.

Announced yesterday (03), the initiative allows members of the public to directly share information on drug-related activity with senior law enforcement officials across the island.

The public can now report incidents involving substances such as heroin, crystal methamphetamine (commonly known as ‘ice’), cocaine, cannabis, and other illicit drugs via specially designated contact numbers.

These lines will connect callers directly to the offices of Senior Deputy Inspectors General (SDIGs) overseeing regional police ranges, as well as Senior Superintendents of Police (SSPs) responsible for divisional command.

Authorities have urged citizens to use the hotlines responsibly and in good faith, noting that community cooperation is vital to tackling the spread of narcotics.

How India Let Sri Lanka Steal Its Tea Crown

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How India Let Sri Lanka Steal Its Tea Crown


By Kanika Datta

India, the land that gave the world Darjeeling and Assam tea, risks losing its place at the global tea table, not because of its leaves, but because of its lost opportunities, notes Kanika Datta.

If you are a fan of tea, the aromatic brew from Darjeeling or Assam taken black without milk and sugar rather than the milky, syrupy chai, then tea is what you will miss most in Sri Lanka, an unexpected discovery during a recent visit.

Yet this little green island outperforms India’s vast and hoary tea industry in the world markets.

Of course, the comparison is unfair, since the flavourful variety grown in the uplands of West Bengal and along the Brahmaputra has a natural advantage that Ceylon Tea, for all its energetic branding, can’t quite match.

Note also that Sri Lanka produces a third of India’s annual production, the world’s second-largest producer (naturally, China is the largest producer).

Yet two Sri Lankan companies figure among the world’s top-10 exporter suppliers. India has just one.

That is Tetley, a British brand that the Tata group presciently acquired in 2000; it remains the group’s most consistently successful overseas acquisition.

When it comes to tea brands, only Tetley keeps the Indian flag flying, though the Indian tea industry is over 170 years old — and Tetley was an established label even before the Tata acquisition. But Sri Lanka’s indigenously developed Dilmah, a 40-year-old brand in a 160-year-old industry, figures high on the list.

IMAGE: Tea plantation workers pluck tea leaves at the Burapahar Tea Estate in Nagaon, Assam. Photograph: ANI Photo

The failure to develop a powerful Indian tea brand in global markets reflects a generic weakness of Indian industry in general.

With exceptions such as Mahindra and Amul, Indian brands are conspicuously absent in global markets.

This deficiency, in turn, is the product of decades of protectionism that allowed monopolists to grow peacefully in the domestic market without facing the rigours of global competition.

Tea, one of India’s oldest industries, offers an appropriate reflection of these structural problems — and a cautionary tale for an economic policymaking establishment with a penchant for sheltering India behind high tariff walls.

For decades, with imports banned, domestic tea prices remained high, delivering splendid profits for tea companies and lavish lifestyles for its executives.

Thanks to India’s close relationship with the Soviet Union, exports, too, were mostly assured, accounting for almost 60 per cent of overseas sales (albeit on a rupee-rouble basis).

This market crumbled after 1991, forcing Indian producers to acquire the habits of competition in seeking foreign markets.

By then, Ceylon and Kenya had almost effortlessly managed to fill the breach, competing successfully on both quality and price.

IMAGE: Tea estate workers sort tea at the Dorje Teas factory in Darjeeling. Photograph: Elke Scholiers/Getty Images/Rediff Archives

After some trauma, the industry adjusted, with the larger companies spinning off plantation and manufacturing activities and focusing on value addition and marketing, belatedly emulating Sri Lanka in turning palatial planters’ bungalows into ‘immersive’ tourism opportunities and launching premium tea brands for upscale domestic consumers.

Though India still imposes a 100 per cent Customs duty on imported tea (plus a 10 per cent social welfare surcharge), imports are permitted — and growing — under an advance authorisation scheme that is alarming the industry.

Either way, the old days of easy profits are long gone, and the industry has stopped being a magnet for young men (and it was only men) from ‘acceptable’ (meaning Westernised) backgrounds.

IMAGE: A worker gathers tea leaves at the Happy Valley tea garden estate in Darjeeling. Photograph: Rupak De Chowdhuri/Reuters

In 2024, there was a frisson of excitement as India surpassed Sri Lanka as the world’s second-largest tea exporter. But when it came to value, India retained its customary fourth position behind China, Sri Lanka and Kenya, indicating the limitations of its pricing power in world markets.

This shortcoming is also rooted in past protectionism. The bulk of India’s tea is of the crush-tear-curl (CTC) variety, an aggressive manufacturing technique that was designed to increase cuppage; it yields a strong liquor that is ideal for the chai that most of India drinks.

Sri Lanka, which exports nearly all of its tea, produces mainly leaf tea, which is more coveted in global markets, where black tea is drunk.

Now, as Indian tea, along with other products, faces a 50 per cent tariff in the United States, the industry will find itself facing a new challenge.

The US accounts for about 11 per cent of India’s global tea market and it is one of the few countries where India leads Sri Lanka by a fairly wide margin.

IMAGE: Tea garden staff pluck tea leaves at the organic tea garden in Sikkim. Photograph: Tim Chong/Reuters

India, in fact, is the second-largest tea supplier to the US where its CTC varieties are useful for the ‘chai-tea’ and the vile flavoured variants that Americans favour (is mango tea even a thing?).

In the tariff game that the Trump administration is playing with the rest of the world, India runs the danger of being priced out by Japan, with a 15 per cent reciprocal tariff, and Sri Lanka at 30 per cent.

With climate change impacting productivity, labour shortages impinging on wages and Nepal encroaching on India’s premium varieties with ersatz Darjeeling tea, the serial closures of tea estates by storied names since 2000 are pointing to accelerating decline.

Indians with a preference for tea rather than chai may find themselves falling back on Sri Lankan or Nepalese alternatives soon.

IMAGE: Tea estate workers pluck tea leaves on Selim Hill in Darjeeling. Photograph: Elke Scholiers/Getty Images/Rediff Archives

Source: Reddif

US Navy Destroyer USS Fitzgerald Arrives in Colombo for Replenishment Stop

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US Navy Destroyer USS Fitzgerald Arrives in Colombo for Replenishment Stop

October 04, Colombo (LNW): The United States Navy’s guided-missile destroyer USS Fitzgerald (DDG 62) arrived at the Port of Colombo on the morning of October 03 for a scheduled replenishment visit.

The Sri Lanka Navy extended a formal welcome to the visiting vessel, honouring longstanding naval traditions as part of the port call. The arrival forms part of routine operational logistics, allowing the ship to restock supplies and prepare for onward deployment.

Measuring 154 metres in length, the Arleigh Burke-class destroyer is currently under the command of Commander Paul Richardson. According to the Sri Lanka Navy, the USS Fitzgerald will resume its journey once replenishment procedures are complete.

Colombo Stock Exchange Hits Historic High as ASPI Surpasses 22,000 Points

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Colombo Stock Exchange Hits Historic High as ASPI Surpasses 22,000 Points

October 04, Colombo (LNW): Sri Lanka’s stock market reached a major milestone as the All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) crossed the 22,000-point threshold for the first time in its history.

As of midday on October 03, the benchmark index stood at 22,057.58 points, marking an increase of 108.39 points from the previous session.

The record-breaking performance reflects growing investor confidence and renewed market momentum.

The latest surge comes amid a backdrop of improved macroeconomic indicators, easing inflationary pressure, and anticipation of policy stability—factors that have encouraged both domestic and foreign participation in equity markets.

Global Energy Giants Eye Strategic Stake in Sri Lanka’s Oil Refinery Expansion

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Global Energy Giants Eye Strategic Stake in Sri Lanka’s Oil Refinery Expansion

October 04, Colombo (LNW): A wave of international interest has emerged around Sri Lanka’s plans to upgrade and expand its only oil refinery, with twenty foreign firms—from countries including China, the United States, Japan, and the United Arab Emirates—submitting proposals to participate in the project.

The Expressions of Interest (EOIs), called by the Ceylon Petroleum Corporation (CEYPETCO), were formally closed last Friday.

Speaking to Daily Mirror, CEYPETCO Chairman D.A. Rajakaruna, the response signals renewed confidence in Sri Lanka’s energy sector, which has long struggled to attract large-scale investment due to a range of historical challenges.

Rajakaruna confirmed that the proposals are now being prepared for evaluation, with the emphasis on securing long-term strategic partnerships rather than short-term capital inflows.

The government is seeking proposals that offer more than financial backing—prioritising investment models that enhance operational efficiency, open up new markets, and create lasting value for the country.

The Sapugaskanda oil refinery, located just outside Colombo, has served as a cornerstone of Sri Lanka’s energy infrastructure since the 1960s. Despite its strategic importance, plans to modernise and expand the facility have repeatedly stalled over the past decade due to internal conflict, the COVID-19 pandemic, economic instability, and political turbulence.

Feasibility assessments were previously undertaken in both 2010 and 2022, but neither effort progressed to implementation.

However, officials now argue that conditions are finally conducive to moving forward. With growing demand for refined petroleum products in the South Asian region and relative political stability returning to the island, the CEYPETCO sees this moment as a crucial window for transformation.

The proposed expansion would double the refinery’s current capacity—from 50,000 barrels per day to 100,000—allowing Sri Lanka not only to better meet domestic demand but also to explore regional supply opportunities in sectors such as aviation fuel, marine bunkering, lubricants, and petrochemicals.

This would significantly reduce dependency on costly imports while positioning the island as a competitive player in regional energy trade.

The government intends to retain a substantial ownership share in any partnership arrangement, ensuring that national interests remain safeguarded. However, it is also open to creative joint venture models that offer investors viable returns and strategic advantages, particularly in technology, logistics, and market access.

The CEYPETCO is now preparing for the next stage of the process, which will involve a detailed assessment of the submitted proposals and the selection of candidates for negotiation. The evaluation is expected to prioritise partners who demonstrate a commitment to sustainability, innovation, and capacity-building within Sri Lanka’s energy sector.

If successful, the project could become a flagship initiative for the country’s broader industrial renewal, sending a strong signal to international investors that Sri Lanka is ready to re-engage with the global market on ambitious, forward-looking terms.

New Domestic Airline Could Transform Travel and Tourism in Sri Lanka Within Months

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New Domestic Airline Could Transform Travel and Tourism in Sri Lanka Within Months

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.”

Sri Lanka and Antigua and Barbuda Forge New Diplomatic Ties

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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

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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

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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.

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