June 08, Colombo (LNW): A recent review by a parliamentary oversight body has drawn attention to a troubling pattern in railway safety, revealing that a significant number of level crossing accidents are occurring at sites already equipped with protective systems.

The revelation came during a session of the Committee on Public Accounts (CoPA), where senior officials from the Railway Department were called to provide updates and respond to queries about ongoing safety issues and operational developments.

During the proceedings, Member of Parliament Chandana Sooriyaarachchi raised specific concerns about recurring accidents at railway crossings. In response, the General Manager of Railways, Dhammika Jayasundara, acknowledged that Sri Lanka still has around 1,200 railway crossings lacking adequate safety measures.

Despite many sites being fitted with warning systems or barriers, he admitted that the majority of incidents continue to take place at these supposedly safeguarded locations — a matter that raises questions about either public adherence to rules or the effectiveness of the safety infrastructure itself.

The discussion also turned to upgrades within the national rail service. K.K. Hewavithana, the Additional General Manager of the Mechanical Division, shared that approval had been secured for the acquisition of five new train sets. These will consist entirely of air-conditioned third-class carriages, marking a shift towards improving comfort and consistency in basic-tier rail travel.

He added that the move is part of a broader effort to modernise the railway’s ageing fleet and improve the experience for everyday commuters, particularly those who rely on long-distance services in often challenging travel conditions.

However, even as improvements in rolling stock are on the horizon, safety remains a pressing concern. Members of the committee urged the Railway Department to adopt more robust strategies to address the persistent dangers at level crossings, especially given that many incidents seem to occur despite existing preventive systems.

June 08, Colombo (LNW): Sri Lanka’s Deputy Minister of Transport and Highways, Prasanna Gunasena, has underscored the enduring bond between Sri Lanka and China, describing the relationship as one of deep mutual respect and longstanding goodwill.

His remarks were made during a visit to a major infrastructure development currently underway in Colombo.

Accompanied by senior officials including Road Development Authority Director General K.W. Kandambi and delegates from the China Civil Engineering Construction Corporation (CCECC), the Deputy Minister toured the site of the Port Access Elevated Highway — a signature project in the capital’s transport transformation plan.

Spanning over 5 kilometres, the elevated expressway is poised to become the nation’s longest bridge. Designed with a dual carriageway and four-lane system, the structure is being constructed using sophisticated segmental box girder techniques, representing a leap in engineering standards for the country.

Speaking to Chinese state media during the visit, Gunasena praised China’s continuous involvement in Sri Lanka’s development journey. He noted that China has played a crucial role in funding and implementing large-scale infrastructure projects over the years, contributing significantly to the island’s economic and logistical capacity.

“We see China not merely as a development partner but as a long-standing friend. It is our hope that this relationship continues to thrive for generations to come,” he remarked.

The Deputy Minister emphasised the economic potential of the highway, which will streamline transport links between Colombo Port and the city centre. Once completed, the route is expected to ease congestion, improve logistics, and support broader economic activities tied to trade and transport.

“This project is more than just concrete and steel — it represents an investment in the future of our economy and the daily lives of our citizens,” Gunasena stated, adding that its completion is anticipated to bring tangible benefits to both the business sector and the general public.

The Port Access Elevated Highway, now in its final stages, marks yet another chapter in Sri Lanka’s collaborative efforts with international partners, particularly China, in shaping a modern, connected infrastructure network across the island nation.

June 08, Colombo (LNW): In celebration of the upcoming Poson festival, Sri Lanka’s railway authorities have arranged an extensive schedule of complimentary train services to support the thousands of devotees expected to travel to sacred sites in the north-central region.

Beginning on June 09 and continuing until June 12, a total of 56 special trains will be in operation, easing access to key religious destinations. Of these, 20 services will run between Colombo Fort and Anuradhapura, whilst 36 will connect Anuradhapura to Mihintale, a location of deep spiritual significance during the Poson season.

In addition to the transport arrangements, Sri Lanka Railways has also made efforts to improve the experience for travellers upon arrival. Enhanced accommodation facilities have been set up at multiple locations in Anuradhapura, including temporary rest areas within and around the railway station.

These facilities aim to provide a measure of comfort for pilgrims who may be travelling long distances and spending extended periods in the city.

General Manager of Railways, Dhammika Jayasundara, expressed his appreciation for the private sector’s involvement, noting that such collaborations are instrumental in supporting national religious and cultural events. The department, he said, remains committed to facilitating a smooth and respectful pilgrimage for all participants during this spiritually significant time.

June 08, Colombo (LNW): The Ministry of Education has introduced a comprehensive directive aimed at curbing the spread of mosquito-borne diseases, particularly dengue and Chikungunya, across educational institutions throughout the country.

In a move to bolster previous efforts, the Ministry has outlined a new set of guidelines that supplements earlier circulars issued in 2010 and 2017. The latest instructions emphasise the urgent need for schools to adopt proactive measures to eliminate potential mosquito breeding sites, both within and surrounding school premises.

Educational institutions are now required to formulate and carry out dedicated action plans to maintain a hygienic, mosquito-free environment. These programmes must be designed in a manner that does not disrupt the normal academic timetable or interfere with the delivery of education.

Heads of all state-run and recognised private schools, as well as administrators of religious learning centres such as ‘Pirivens’, Deans of National Colleges of Education, and officials at provincial education departments, have been formally notified of the new directive.

The Ministry has also issued a stern warning: during periodic inspections, any discovery of mosquito breeding sites on school grounds may result in legal proceedings against the principal or head of the institution.

This firm stance is intended to underscore the seriousness of the public health risk posed by these illnesses, which continue to affect communities nationwide.

June 08, Colombo (LNW): Showery condition is expected to enhance in the southwestern part of the island from June 10, with strong wind gust over the island and in the sea areas around the island, the Department of Meteorology said in its daily weather forecast today (08).

General public is requested to be attentive to future forecasts issued by the Department of Meteorology in this regard.

Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers may occur at a few places in the Northern and Uva provinces and in Ampara and Batticaloa districts in during the afternoon or night.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, North-western and Southern provinces and in Trincomalee district.

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:
Light showers may occur in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle. Manly fair weather will prevail over the other sea areas around the island.

Winds:
Winds will be south-westerly.
wind speed will be (30-40) kmph and can increase up to (50-60) kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota.

Wind speed will be (25-35) kmph in the other sea areas around the island.

Wind speed can increase up to (45-50) kmph in the sea areas extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota will be rough at times. The sea areas extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu will be fairly rough at times.

The wave height may increase about (2.5-3.0) m in the sea areas off the coast extending from Hambantota to Pottuvil. Naval and fishing communities are requested to be vigilant in this regard.

Sri Lanka’s external finances are under growing pressure, with rising interest payments and a sharply widening trade deficit straining the economy. Treasury officials revealed that Rs. 1.5 trillion had been spent on principal and interest payments during the first four months of 2025—consuming over 20% of the country’s annual borrowing limit.

With Rs. 796 billion paid as interest and Rs. 352 billion on principal repayments, the country’s debt servicing remains a formidable burden. Alarmingly, Rs. 705 billion of the interest was paid on domestic borrowings alone.

This mounting debt is compounded by a weakening trade balance. In April 2025, Sri Lanka’s trade deficit surged to US $717 million, marking a steep rise from $396 million recorded in March—a more than 80% month-on-month increase. Year-on-year, the deficit was also significantly wider than the $558 million reported in April 2024.

The growth in imports outpaced exports, driving the widening gap. While April exports rose by 10.4% YoY to $968 million, they fell sharply from March’s $1.24 billion. Meanwhile, imports grew 17.5% YoY to $1.68 billion in April, maintaining a similar level to March’s $1.63 billion, which had also risen 8.6% YoY.

According to the Central Bank, for the first four months of 2025, the cumulative trade deficit widened to $2.25 billion. Export earnings during this period increased 6.4% YoY to $4.3 billion, driven mainly by gains in textiles and garments (11.6%), spices (66.3%), food, beverages and tobacco (25.0%), and chemical products (42.6%).

However, import expenditure ballooned by 12.7% YoY to $6.57 billion. This surge was led by a dramatic rise in personal vehicle imports (707.9%), followed by transport equipment (142.2%), oils and fats (136.4%), machinery and equipment (26.5%), and sugar and confectionery (51.5%).

In terms of borrowings, Rs. 654 billion was sourced domestically while Rs. 128 billion came from foreign sources, totalling 20.5% of the Rs. 3,800 billion approved borrowing limit for 2025. Treasury bond issuance on a net basis reached Rs. 760 billion, while Rs. 107 billion worth of Treasury bills were retired.

As of end-April, Sri Lanka’s domestic debt stock stood at Rs. 19.3 trillion, with foreign debt at Rs. 11.2 trillion as of end-March. Additionally, Treasury guarantees amounting to Rs. 1,515 billion were issued by April’s end, including Rs. 910 billion for foreign obligations.

Officials also indicated a downward revision of the 2025 GDP projection—from Rs. 33 trillion to Rs. 32 trillion—which could reduce revenue and expenditure targets by Rs. 150 billion. This outlook raises further concerns over fiscal stability in the months ahead.

In a major diplomatic and economic milestone, Chinese Commerce Minister Wang Wentao led the largest-ever Chinese business delegation to Sri Lanka, unveiling a comprehensive roadmap to deepen bilateral ties and enhance investment flows under the Belt and Road Initiative (BRI).

Addressing the Sri Lanka–China Trade and Investment Forum 2025 in Colombo, Wang emphasized the enduring “millennium-long friendship” between the two nations and laid out a strategic three-pillar plan: expanding bilateral trade, advancing green and digital investment, and reinforcing multilateral cooperation.

He called for the revival of the dormant China–Sri Lanka Joint Committee for Economic and Trade Cooperation, and encouraged stronger presence of Sri Lankan products like Ceylon tea, spices, and apparel in Chinese markets.

The high-level forum, which drew 115 delegates from 77 Chinese companies, also featured speeches from Chinese Ambassador Qi Zhenhong and Sri Lanka’s Board of Investment (BOI) Director General Renuka Weerakone, who made a compelling pitch for greater Chinese participation in Sri Lanka’s economy.

Weerakone highlighted Sri Lanka’s growing attractiveness as an investment destination, citing liberal policies such as 100% foreign ownership, full repatriation of profits, and constitutional investment protection. She noted that Chinese investments in Sri Lanka already total $3.5 billion, generating around 5,000 local jobs.

To further incentivize investors, the BOI chief detailed several benefits, including:A 15% reduced corporate tax rate for export services,100–200% capital allowances, and  Duty exemptions on raw materials and imports,and a “Green Channel” for efficient customs clearance for high-performing firms.

She also outlined the criteria for non-BOI firms to qualify for BOI benefits, including capital thresholds starting from $250,000 for manufacturing and $5 million for mixed development projects.

Weerakone identified textile and apparel, pharmaceuticals, automotive components, rubber-based products, minerals, and tourism as priority sectors for foreign direct investment (FDI). She also emphasized high-growth sectors like ICT and digital services, education, agriculture and food processing, and renewable energy.

“Sri Lanka is uniquely positioned with its skilled workforce, strategic location, and market access,” she said, citing preferential trade access to 27 EU nations under GSP+, along with free trade agreements with India, Pakistan, Singapore, and Thailand.

The BOI also spotlighted ready-to-invest projects in hospitality, IT, education, pharmaceuticals, and logistics, encouraging immediate participation from Chinese businesses.

As China looks to scale up its global partnerships, Wang’s visit underscores the strategic weight Beijing places on Sri Lanka within its regional economic architecture. For Colombo, the visit signals a new chapter of intensified economic collaboration that could play a vital role in its post-crisis recovery and growth.

Sri Lanka’s sugar importers have raised serious concerns over a proposed increase in the existing sugar import tax, warning it could lead to price surges, artificial shortages, and market instability.

The current tax stands at Rs. 50 per kilogram — a significant jump from the earlier 25 cents per kilo — and was originally introduced to protect local sugar producers like Pelawatte and Sevanagala.

However, importers argue that this rate is already high by global standards, and any further increase would only burden consumers and disrupt the market.

Importers stress that local sugar production is both limited and unsuitable for many industrial applications.

Locally produced brown sugar does not meet the standards required by industries such as confectionery, beverages, and baked goods, which rely on refined white sugar.

With domestic output accounting for only about 10% of the total sugar demand, imports remain critical to meet national consumption needs.

Currently, Sri Lanka imports roughly 60,000 metric tons of sugar each month, generating around Rs. 3 billion in revenue through the current tax regime. Importers warn that a proposed increase in the tax — possibly to Rs. 80 per kilo — would not only hike consumer prices but also allow large importers with stockpiles to reap windfall profits.

An increase of Rs. 30 per kilo would provide these importers, who reportedly hold around 60,000 metric tons in storage, with an estimated Rs. 1.8 billion in extra profit without any additional costs.

Small and medium-scale importers, who lack the capacity to store large volumes and are awaiting new shipments, say they would be severely disadvantaged.

These smaller players argue they cannot compete with larger firms’ pricing strategies and warn that the imbalance would lead to monopolistic practices and further distort the market.

Importers also emphasize that higher taxes will inevitably be passed down to consumers, affecting the cost of essential goods such as tea, sweets, beverages, and bakery products. This would be especially difficult for low-income families, for whom sugar remains a staple in the daily diet.

In light of these concerns, sugar importers have appealed to President and Finance Minister Anura Kumara Dissanayake to reconsider any increase in the import tax.

They argue that such a move would trigger artificial shortages, manipulate market pricing, and place unnecessary pressure on the general public — all while benefiting only a handful of powerful stakeholders.

Ultimately, importers are urging the government to maintain the current tax rate and focus on ensuring fair competition and stable supply, rather than creating an environment that disproportionately favors large importers and jeopardizes affordability for ordinary citizens.

After months of anticipation, Sri Lanka Tourism Promotion Bureau (SLTPB) yesterday announced that it will officially launch its long-awaited ‘Nation Branding Campaign’ on 26 June, to rejuvenate its global tourism image and woo travellers.

In a statement, SLTPB described the upcoming event as an “extraordinary” gathering, promising to bring together top State officials, key private sector players, tourism experts and guests on a single platform.

The move is something the private-sector-run industry stakeholders have constantly urged the authorities and the Government to expedite the campaign, stressing that without a robust promotional push, only through an ‘organic footfall’ — the ambitious target of attracting 3 million tourists and generating $ 5 billion in revenue for 2025 is unrealistic.

Although the date of the event has been confirmed, the venue is yet to be disclosed.

The early announcement, nearly three weeks ahead, is somewhat unusual, particularly for an event, where finer logistical details remain under wraps.

However, industry sources suggest the move is part of a strategic effort to generate pre-launch buzz and position Sri Lanka as a destination that is not only ready, but eager to re-enter the international spotlight with renewed energy and focus.

“This landmark occasion will showcase the latest initiatives driving the growth and development of Sri Lanka’s thriving tourism industry, while highlighting the remarkable progress in tourist arrivals,” it added.

A total of 132,919 tourists have arrived in the country in May 2025, data from the Sri Lanka Tourism Development Authority (SLTDA) shows.

This is an increase of 18.5% in comparison to the numbers arrived in May 2025. The May arrival figures are also an increase of 2.7% in comparison to the number of foreign nationals arrived in May 2018.

Accordingly, the total number of tourist arrivals in the first five months of 2025 stands at 1,029,803.Among source markets, India accounted for the highest share of tourist arrivals in May, contributing 35.4% of the total, with 47,001 visitors.

Furthermore, 9,221 persons from the United Kingdom, 8,803 from China, 7,282 Bangladesh and 7,223 individuals from Germany also visited Sri Lanka last month.

Sri Lanka’s tourism sector showed improved growth in tourist arrivals in May 2025, compared to the same period in 2024.

The upward trend was significantly propelled by a strong influx of visitors from India, who accounted for nearly one-third of all arrivals during this period.

Industry analysts note that the proposed free-visa travel initiative and a comprehensive global promotion campaign are yet to be fully implemented.