September 22, Colombo (LNW): Sri Lanka has made significant strides in restoring macroeconomic stability and laying the foundation for recovery, but the road ahead remains uncertain due to shifting global dynamics, warned Central Bank Governor Dr Nandalal Weerasinghe in a recent address assessing the country’s economic trajectory.
Dr Weerasinghe acknowledged that the domestic economy has stabilised following an extended period of volatility, with key fiscal and monetary reforms beginning to bear fruit. However, he cautioned that sustaining growth will require navigating an increasingly unpredictable international environment shaped by geopolitical tensions and a rise in protectionist economic policies.
“The global economic landscape is becoming more fragmented,” Dr Weerasinghe noted, pointing to a resurgence of trade barriers and tariff regimes, particularly among major economies. He identified recent tariff hikes by the United States—Sri Lanka’s largest export destination—as a particular challenge. In 2024, nearly 25% of Sri Lanka’s exports were absorbed by the U.S. market.
Despite these headwinds, Sri Lankan authorities have succeeded in negotiating a phased reduction of U.S. tariffs on select exports—from a steep 44% in April to 20% by August 2025. While this development offers temporary relief, Dr Weerasinghe stressed that the country’s overdependence on a handful of markets and low value-added products leaves it vulnerable to further external shocks.
“This is a wake-up call,” he said, urging both the public and private sectors to focus on diversifying export portfolios and developing niche, high-value sectors capable of weathering global disruptions. The need for a more resilient and adaptable economic model, he added, is no longer a matter of strategic ambition but of survival.
The Governor also raised concerns about the broader implications of protectionism, warning that global inflation could re-accelerate if supply chains are further strained by rising input costs and shifting trade alliances. Increased tariffs on raw materials and energy inputs may intensify price instability and delay much-needed investment flows, both in Sri Lanka and globally.
Geopolitical instability, especially in conflict-prone regions such as the Middle East, was also cited as a growing concern. Ongoing tensions have led to elevated shipping costs and logistical delays, threatening global supply chains and reducing predictability for exporters and importers alike.
While hopeful that international tensions may subside over time, Dr Weerasinghe underscored the importance of building economic resilience at home through sound fiscal management, sectoral diversification, and greater integration into alternative global markets. He also emphasised the role of multilateral engagement in helping small and vulnerable economies like Sri Lanka weather future economic storms.
“We’ve stabilised the ship,” he concluded. “But we must now reinforce the sails to withstand the unpredictable winds of global change.”
Central Bank Chief Warns of External Risks as Sri Lanka Moves Toward Economic Recovery
Court Sets New Date in Asset Case Involving Yoshitha Rajapaksa and Grandmother
September 22, Colombo (LNW): The Colombo High Court has scheduled the continuation of legal proceedings against Yoshitha Rajapaksa, the son of former President Mahinda Rajapaksa, and his grandmother, Daisy Forrest, for October 15. The case centres on allegations of illicit asset accumulation amounting to roughly Rs. 73 million.
Both accused were present in court as the matter was called, following charges filed by the Attorney General under the Prevention of Money Laundering Act. The proceedings relate to suspicions that the two individuals were involved in the unlawful acquisition of high-value assets and property, in violation of financial regulations governing public accountability and anti-corruption laws.
According to court documents, the investigation stems from a broader examination of undeclared wealth and financial irregularities reportedly linked to individuals with access to political influence. Prosecutors allege that the wealth in question was amassed through channels inconsistent with legitimate income sources, and that efforts were made to obscure the true origins of the assets.
Weapons Cache Uncovered in Middeniya Linked to Ex-Council Candidate Under Probe
September 22, Colombo (LNW): Authorities have uncovered a hidden stockpile of weapons in the Middeniya area, allegedly connected to former local government candidate Sampath Manamperi, who previously represented the Sri Lanka Podujana Peramuna (SLPP) at the grassroots level.
The discovery was made during a police operation carried out based on information provided by Manamperi himself, according to Police Spokesman ASP F. U. Wootler.
Officers recovered a number of military-grade items buried on private land, including two magazines compatible with T56 rifles, 115 rounds of T56 ammunition, a 9mm pistol, and a live hand grenade.
Further investigations revealed that the cache had been hidden on a property allegedly linked to a woman described as Manamperi’s mistress. The motive behind concealing the weaponry in this particular location is yet to be fully established, though police suspect a possible connection to broader criminal activities.
Manamperi, already embroiled in a separate major narcotics investigation, is currently in the custody of the Police Narcotics Bureau. He surrendered to the Walasmulla Magistrate’s Court on September 17 after being implicated in a large-scale drug trafficking operation. That case involves the discovery of two buried containers of crystal methamphetamine (commonly known as “ice”) on land reportedly under his control.
Following his surrender, Manamperi was handed over to narcotics investigators and subsequently transferred to the Western North Crime Division for additional interrogation, as authorities widen their probe into his alleged involvement in both arms possession and organised drug trafficking.
President Embarks on Official Visit to United States for High-Level UN Engagements
September 22, Colombo (LNW): President Anura Kumara Dissanayake is set to embark on an official visit to the United States today, where he will participate in a series of high-level engagements, including addressing the 80th session of the United Nations General Assembly (UNGA) in New York.
The President’s visit is seen as a key diplomatic mission, as Sri Lanka seeks to strengthen its presence on the global stage amid ongoing efforts to re-engage with international partners. He is expected to deliver his address to the UN General Assembly on Wednesday at 3:15 p.m. local time, where he will outline Sri Lanka’s foreign policy priorities, domestic reforms, and its stance on pressing global issues.
In addition to his address at the General Assembly, President Dissanayake will hold bilateral discussions with the United Nations Secretary-General, as well as several other world leaders. These talks are expected to focus on areas such as sustainable development, regional security, climate resilience, and economic cooperation.
The President is also scheduled to engage with members of the Sri Lankan community during his visit. A special meeting has been organised to facilitate dialogue between the Head of State and Sri Lankan nationals living in the United States, with discussions likely to centre on investment opportunities, national reconciliation efforts, and the role of the diaspora in the country’s future development.
Accompanying the President on this official tour is Minister of Foreign Affairs, Foreign Employment, and Tourism Vijitha Herath, who is expected to play a supporting role in several of the diplomatic discussions and promote Sri Lanka’s tourism and labour engagement strategies on the international platform.
Islandwide Mobile EPF Initiative Launched to Support Workers
September 22, Colombo (LNW): A nationwide outreach programme aimed at supporting members of the Employees’ Provident Fund (EPF) has officially been launched today, marking the beginning of what is being called the EPF Mobile Service Week.
The initiative, spearheaded by the Ministry of Labour, seeks to bring essential services directly to communities across the country.
The first event took place this morning in Jaffna, with Deputy Labour Minister Mahinda Jayasinghe attending as the chief guest. Designed to improve accessibility and address long-standing concerns of EPF contributors, the mobile service is expected to cover multiple districts over the coming days.
Officials from the Ministry noted that the programme has been tailored to provide a wide array of services, going beyond routine administrative support. Participants will be able to resolve discrepancies in their EPF accounts, submit claims, and receive personalised assistance from Ministry representatives.
In addition, the mobile units will host job fairs aimed at connecting jobseekers with prospective employers, particularly targeting youth and those recently displaced from employment. Legal experts will also be on hand to offer guidance on workplace rights, retirement entitlements, and EPF regulations — an offering intended to empower workers with knowledge of their legal protections and responsibilities.
Court Extends Remand of Ex-Minister Shasheendra Rajapaksa Amid Corruption Allegations
September 22, Colombo (LNW): Former Minister Shasheendra Rajapaksa will remain in custody until September 30 following a ruling by the Colombo Chief Magistrate’s Court earlier today (22).
The court dismissed a request for bail, opting instead to extend his remand as investigations into corruption charges continue.
Presiding Magistrate Asanka S. Bodaragama issued the order after reviewing the details presented by legal representatives and investigators. The decision reflects the court’s view that the nature of the allegations warrants continued judicial oversight while inquiries are underway.
Rajapaksa stands accused of unlawfully securing financial compensation amounting to Rs. 8.85 million. The funds were reportedly claimed as recompense for the damage caused to a political office he had constructed on Mahaweli land — a location not legally sanctioned for such use.
The building was destroyed during the mass public protests that took place during the 2022 ‘Aragalaya’ movement, a period of widespread unrest that led to the downfall of several high-ranking political leaders.
The Commission to Investigate Allegations of Bribery or Corruption, which initiated the arrest, alleges that Rajapaksa’s compensation claim was made in violation of the Anti-Corruption Act, categorising the act as a clear instance of misusing public resources for personal gain.
President Declares Electricity Supply Services Essential Amid Concerns of Disruption
September 22, Colombo (LNW): President Anura Kumara Dissanayake has formally declared that all operations connected to the provision of electricity are now categorised as essential public services, following the issuance of a special gazette on 21 September.
Acting under the authority granted by the Essential Public Services Act No. 61 of 1979, the President made this designation in light of potential threats to the uninterrupted functioning of electricity-related services across the country.
The directive, conveyed through an Extraordinary Gazette issued by the Secretary to the President, Dr N. S. Kumanayake, applies to all entities involved in the generation, transmission, and distribution of electricity. This includes government departments, public corporations, provincial and local authorities, as well as co-operative societies engaged in energy provision.
Prevailing showery, windy condition over south western parts of Island further expected to continue (Sep 22)
September 22, Colombo (LNW): Prevailing showery and windy condition over the south western parts of the island is expected to continue, the Department of Meteorology said in its daily weather forecast today (22).
Showers will occur at times in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.
A few showers may occur in North-western province.
Showers or thundershowers are likely at a few places in Uva province and in Ampara and Batticaloa districts after 2.00 p.m.
Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Central, Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.
The general public is kindly requested to take adequate precautions to minimise damages caused by lightning and temporary localised strong winds during thundershowers.
Marine Weather:
Condition of Rain:
Showers are likely at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph.
Wind speed can increase up to (50-55) kmph at times in the sea areas off the coast extending from Chilaw to Trincomalee via Mannar and Kankasanthurai and from Matara to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coast extending from Chilaw to Trincomalee via Mannar and Kankasanthurai and from Matara to Pottuvil via Hambantota may be rough at times.
A Nation Reclaimed: One Year of Renewal, Justice, and Hope
An Editorial Reflection
By: Roger Srivasan
Today we mark one year of visionary leadership — a year that reclaimed our nation from fear, corruption, and division, and set it on the path of justice and renewal.
One year ago, a weary nation placed its trust in new leadership — not out of blind hope, but out of a desperate need for change. For too long, the country had suffered under the weight of corruption, nepotism, and mismanagement. The people longed for a leader who would not merely promise reform, but embody it; one who would not rule from above, but serve from among them.
In a single year, much has changed. Fear no longer dictates the rhythm of daily life. The drug barons and underworld lords who once operated freely — some from foreign soil, issuing orders of violence and death — have been hunted down. Their empires lie fractured, their reign of terror dismantled. For the first time in decades, the streets whisper not of fear, but of freedom.
The cancer of corruption, too, has been confronted head-on. Politicians who grew fat on the people’s poverty now find themselves ensnared by justice. Their hidden wealth is being seized, their impunity stripped
away. The message is clear: no one is above the law.
Yet the leader who has guided this renewal has not sought the limelight. He shuns grandeur, choosing instead the quiet path of service. He is, in truth, an asset to the nation and a gift to the people — a leader
delivered by Providence, walking a few steps ahead of those who would harm the Republic.
Perhaps the most profound transformation has been moral: the banishment of racism from politics. For decades, cynical leaders played the vile trump card of ethnic division, pandering to the majority Sinhala community while alienating Tamils, Muslims, and others. That era is gone. Today, all races are embraced with dignity and equality, each community valued as a cherished child of the nation. Diversity, once manipulated for division, is now celebrated as strength.
This first year is not the end of the journey, but the foundation of a greater one. The task ahead remains immense: rebuilding institutions, restoring the economy, and deepening democracy. But the trajectory has
shifted. The people know, at last, that change is possible— that a nation once betrayed can be reclaimed.
One year on, the promise of renewal shines bright. Justice is no longer a dream, but a reality in motion. Hope is no longer an illusion, but a force alive in every village and city. This is not merely a new chapter
in the nation’s story. It is a reclamation — of justice, of unity, of dignity. Above all, it is the beginning of a dawn that belongs to every citizen, now and for generations to come.
Sri Lanka Set for Stable Growth as Investors Eye Post-Crisis Opportunities
By: Staff Writer
September 21, Colombo (LNW): Sri Lanka’s battered economy appears to be entering a new phase of stability and growth, with international investors increasingly optimistic about its long-term prospects. After years of crisis and political turbulence, the country is now regaining momentum on the back of reforms, improved governance, and recovering investor confidence.
Asia Frontier Capital (AFC) Fund Manager Ruchir Desai, writing recently in International Banker, described Sri Lanka as one of the most compelling investment destinations in Asia. “With an outlook for stable growth, a universe of exceptionally well-run companies with good corporate governance, and valuations that are still below pre-crisis levels,
Sri Lanka remains a top country pick for our AFC Asia Frontier Fund,” he said. The country currently accounts for nearly 13% of AFC’s Asia Frontier Fund, making it the second-largest holding.
Economic data supports this cautious optimism. Sri Lanka’s GDP expanded by 5% in 2024 and by 4.9% in the first half of 2025, surpassing expectations.
Growth has been fueled by domestic consumption, renewed business and infrastructure investment, and a strong rebound in tourism. Visitor arrivals are expected to reach 2.5 million this year, exceeding pre-pandemic levels and underlining the sector’s importance to the recovery. Worker remittances have also surged as the rupee stabilized, strengthening household incomes and domestic demand.
Desai recalled that when he visited Colombo in late 2022, the country was at its lowest point in decades, with the stock market trading at a price-to-earnings ratio of just four times. Since then, the Central Bank’s decisive interventions steep rate hikes, a managed devaluation, and subsequent easing as inflation cooled combined with the IMF’s Extended Fund Facility program in 2023, have helped restore credibility to the economy.
The Colombo Stock Exchange has since surged nearly 200% in US dollar terms, and remains attractively valued compared to pre-crisis levels.
The 2024 elections, which brought Anura Kumara Dissanayake and the National People’s Power coalition to power, are seen as a political inflection point. Investor confidence was reflected in the CSE’s 34.5% surge in the final quarter of 2024, followed by a further 19% gain so far in 2025. For many analysts, the decisive mandate reduced political uncertainty and opened the way for deeper reforms.
Looking ahead, tourism and logistics stand out as key growth drivers. With its deep-sea terminals and strategic geographic location, the Port of Colombo is well-positioned to become a major South Asian logistics hub. Desai argued that policies to strengthen trade and logistics could deliver long-term dividends, while Sri Lanka’s proximity to India offers another opportunity. Just as Southeast Asian economies leveraged China’s rise in the 2000s, Sri Lanka could benefit from India’s rapid economic expansion, particularly in tourism and trade.
Global uncertaintiessuch as US trade policy shift pose risks, but Desai noted Sri Lanka’s limited exposure, with exports to the United States accounting for just 3% of GDP. Instead, he stressed that Sri Lanka’s recovery is driven largely by domestic reforms and resilience.
The key challenge now, he cautioned, is to ensure that policymakers do not become complacent in the face of renewed optimism. “The stage has now been set for Sri Lanka to achieve a period of stable growth,” he wrote, “but this requires disciplined execution of reforms to secure long-term benefits for companies, investors, and the country at large.”