By: Staff Writer
November 16, Colombo (LNW): The Committee on Public Finance (CoPF), chaired by Dr. Harsha de Silva, has completed its internal review of the draft report on the 2026 Appropriation Bill, concluding that the proposed Budget remains broadly consistent with Sri Lanka’s ongoing IMF reform program but not without emerging fiscal risks that could challenge next year’s stability.
The draft report, prepared under Standing Order 121(5)(i), was examined at this week’s CoPF meeting in Parliament. According to the committee’s technical assessment, the 2026 Budget complies with the requirements of the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and the fiscal benchmarks outlined in the IMF’s Extended Fund Facility (EFF) program.
IMF Review Looms as $347 Million Hangs in the Balance
The IMF announced this week that it is currently reviewing Sri Lanka’s 2026 Budget as part of the fifth EFF program review, completed recently at staff level. The Fund’s Executive Board will decide whether to release the next $347 million tranche based on whether the Budget maintains the agreed fiscal path, structural reforms, and debt sustainability commitments.
Adding to this, Fitch Ratings noted that the Budget signals continued commitment by President Anura Kumara Dissanayake’s administration to the fiscal discipline required under the international reform program.
Revenue Boom in 2025, but 2026 Outlook Weakens
One of the key findings highlighted by CoPF is the strong revenue performance in 2025, with total collections exceeding forecasts by Rs. 100 billion. The surge is attributed largely to higher-than-expected tax income from vehicle imports, an area that delivered a surprising boost to state finances this year.
This windfall has provided the Government with greater fiscal room when planning the 2026 expenditure framework. However, the committee cautioned that this favourable trend is temporary. A significant decline in vehicle imports expected next year could sharply reduce this revenue stream, posing challenges for maintaining the same momentum in 2026.
The report warns that unless alternative revenue channels are strengthened—notably through tax administration reforms, broadening the tax base, and improving compliance—the Budget may face pressure as early as mid-2026.
Civil Society Flags Transparency and Equity Concerns
After concluding its technical review, the CoPF met with representatives from civil society groups, who raised concerns on several fronts:
Transparency of allocations, especially in large spending ministries
Equitable distribution of funds across provinces and key social sectors
Weaknesses in the fiscal framework, including gaps in monitoring and evaluation
Need for more accountable spending, particularly in state-owned enterprises
Committee Chair Dr. de Silva assured that all recommendations and observations would be formally communicated to the Finance Ministry, noting that public engagement is an essential part of ensuring budget credibility and public trust.
Next Steps
The draft report will be submitted to Parliament in the coming days, ahead of the Budget debate. With the IMF’s upcoming Board decision dependent on the government’s fiscal direction, the 2026 Appropriation Bill has now become a crucial test of Sri Lanka’s commitment to economic reforms—and its ability to sustain revenue in the face of slowing import-driven income
IMF-Aligned 2026 Budget Raises Red Flags on Slowing Revenue Streams
Tourism Gains Further Momentum: Earnings Reach $2.6 Bn in First 10 Months
November 16, Colombo (LNW): Sri Lanka’s tourism sector continues to show signs of recovery, with total earnings for the first ten months of 2025 reaching approximately US$ 2.66 billion, according to the Central Bank of Sri Lanka (CBSL).
For October alone, the island nation generated around US$ 186 million from tourism, reflecting a modest yet encouraging increase compared with the same month last year. Overall, revenue from January to October represents a near 5 per cent rise from the US$ 2.53 billion recorded over the same period in 2024.
Data from the Sri Lanka Tourism Development Authority (SLTDA) reveals that nearly two million international visitors arrived in the country from the start of the year until November 12.
India remains the largest source market with over 440,000 arrivals, followed by the United Kingdom with 180,000 visitors, Russia with 144,000, Germany with 123,000, and China contributing around 115,000 tourists.
In the first twelve days of November alone, Sri Lanka welcomed more than 82,000 foreign travellers, underscoring sustained interest in the country as a tropical destination.
Authorities Begin Printing Long-Delayed Permanent Driving Licences
November 16, Colombo (LNW): The Department of Motor Traffic has started printing permanent driving licences that had been delayed due to a shortage of cards required for production, ending the temporary reliance on provisional permits.
Commissioner General Kamal Amarasinghe confirmed that approximately 350,000 permanent licences are set to be produced across three centres: the main facility in Werahera, along with additional printing units in Hambantota and Anuradhapura.
He added that the department anticipates issuing around 6,000 licences each day, including 1,500 under the expedited one-day service, with the remaining 4,500 processed through the standard procedure.
Officials expect the backlog of pending licences to be fully cleared within the next fortnight.
Amarasinghe also noted that the country is preparing to import one million additional licence cards soon, ensuring a steady supply for future demand and preventing further delays for applicants.
CAA Imposes Fresh Price Caps on Popular Canned Fish Products
November 16, Colombo (LNW): The Consumer Affairs Authority has released a new gazette introducing revised ceiling prices for a range of canned fish products, with the changes taking effect from yesterday (15).
The update replaces the pricing order published on December 27, 2024.
Under the latest revisions, a 155g tin of tuna may not be sold for more than Rs. 165, while the larger 425g tin has been capped at Rs. 380. For mackerel, the authority has fixed the maximum price at Rs. 210 for the smaller pack and Rs. 480 for the 425g size.
Jack mackerel has also seen adjustments, with the 155g can set at a maximum of Rs. 240 and the 425g version limited to Rs. 560.
The CAA stressed that traders are strictly prohibited from selling, displaying, or offering these items above the new price limits. Officials added that monitoring teams will be deployed more frequently over the coming weeks to ensure retailers comply with the regulations, noting that such measures aim to maintain fair pricing amid rising consumer concerns over the cost of essential food items.
Minister Criticises Excessive Overseas Travel by Parliamentary Staff
November 16, Colombo (LNW): Leader of the House Minister Bimal Rathnayake told Parliament yesterday (15) that certain members of the parliamentary secretariat have been travelling abroad far more often than necessary, raising concerns about accountability and value for money.
He observed that a number of officials had undertaken several overseas visits yet failed to bring back a single meaningful proposal or recommendation that could support national development.
At the same time, he said, many capable officers who could genuinely benefit from international exposure had never been afforded such opportunities.
Rathnayake remarked that a small cluster of staff appeared preoccupied with perks rather than public service, reminding the House that Parliament ultimately operates under the mandate of the people, not personal entitlement.
Addressing delays in administrative matters, the Minister noted that the Speaker had instructed the Secretary-General on September 30 to submit a report on salary restructuring and related appeals.
However, he pointed out that the report had still not been tabled and said he had no explanation as to why the directive had been ignored.
Police Seek Public Help After Foreign Tourist Harassed in Arugam Bay
November 16, Colombo (LNW): Pottuvil Police have appealed to the community for information that could help identify a man suspected of harassing a foreign visitor in Arugam Bay on October 25.
Officers have opened a formal investigation and urged anyone who may have witnessed the incident or recognised the individual to contact the Pottuvil Police Station via 063 2248022, or the Officer-in-Charge on 071 8591168.
The inquiry was prompted by widely circulated social-media footage in which a female tourist, travelling alone in a hired tuk-tuk, is confronted by a man after pulling over. In the recording, the man behaves indecently by exposing himself and attempts to approach her, prompting the visibly distressed tourist to raise her voice in fear.
The traveller, who had been filming her journey as part of a personal travel log, inadvertently captured the encounter. Speaking in the video, she reflects on her shock, remarking that although she had experienced great warmth from locals, the incident had shaken her confidence for the remainder of her stay.
Police said they are treating the matter with urgency and have stepped up efforts in the area to ensure the safety of visitors and residents alike.
Sri Lanka Envoy Hails Gujarat’s Progress, Emphasises Expanding Maritime and Trade Partnerships
November 16, Colombo (LNW): Sri Lanka’s High Commissioner to India, Mahishini Colonne, has praised Gujarat’s development trajectory following a meeting with the state’s Chief Minister, Bhupendra Patel, noting that Sri Lankans have long watched Gujarat’s rise with interest.
Speaking to journalists after the meeting, Colonne highlighted the shared maritime character of both regions, remarking that their historic and geographical ties naturally lend themselves to deeper cooperation.
She conveyed the greetings of President Anura Kumara Dissanayake and the Sri Lankan government, adding that Gujarat’s transformation—observed since the period when Narendra Modi served as Chief Minister—had often been viewed in Sri Lanka as an instructive example of economic progress. According to her, the “Gujarat model” had generated considerable attention among policymakers in Colombo.
Colonne went on to underline the longstanding links between Gujarat and Sri Lanka, noting that both possess extensive coastal traditions and rely heavily on maritime commerce. She observed that Sri Lanka’s ports play a crucial role in handling India’s transhipment cargo, a point that had also been underscored by Sri Lanka’s Prime Minister Harini Amarasuriya during her recent visit to India. At the time, the Prime Minister had suggested that Sri Lankan ports could serve as strategic gateways for India’s global trade routes.
Discussions between Colonne and the Chief Minister reportedly covered a range of potential collaborations, from textiles and pharmaceuticals to tourism and hospitality—sectors she described as ripe for investment and knowledge exchange.
A significant development during the Sri Lankan delegation’s visit was the signing of a Memorandum of Understanding between the Ceylon Chamber of Commerce and the Gujarat Chamber of Commerce and Industry. Colonne said the agreement could mark the beginning of a “robust, forward-looking partnership” that would benefit both economies.
The MoU was formalised during an interactive session hosted by the Gujarat Chamber of Commerce and Industry, with business leaders from both sides expressing optimism about new commercial avenues that may open in the months ahead.
Finance Ministry Extends Deadline for District-Level Development Projects
November 16, Colombo (LNW): The Ministry of Finance has circulated revised instructions to District Secretaries concerning this year’s allocations under the Decentralised Capital Budget Programme, granting officials additional time to complete their approved development proposals.
The new directive specifies that all projects endorsed for funding under the 2025 programme must be finalised by December 15 next year.
This represents a notable adjustment to the Ministry’s earlier circular, MF/02/2025, which had set today as the deadline for the completion of works.
In the updated notice, which amends paragraph 3.3 of the guidelines first issued on January 29, Finance Secretary Dr Harshana Suriyapperuma emphasised that district authorities should ensure projects are delivered within the revised timeframe.
Southern Province Governor Bandula Harischandra Passes Away
November 16, Colombo (LNW): Governor of Sri Lanka’s Southern Province Bandula Harischandra has died unexpectedly at the age of 62, according to official sources.
He is said to have fallen critically ill and passed away while undergoing treatment at Colombo National Hospital late last night, despite efforts by medical staff to stabilise his condition.
Harischandra was widely regarded as a seasoned public servant, having spent more than three decades in government administration. A former pupil of Sri Palee College in Horana, he later read for his degree at the University of Kelaniya before embarking on a long career in the Sri Lanka Administrative Service.
Beginning his service in 1991 as Assistant District Commissioner of Elections in Ampara, he went on to hold a succession of posts, including a similar role in Galle. His administrative journey took him through several key appointments in the Galle District, among them Divisional Secretary of Galle Four Gravets, Additional District Secretary, and eventually Acting District Secretary.
His leadership experience later broadened with appointments as District Secretary for Ratnapura and subsequently Hambantota. Harischandra also occupied senior posts at the national level, including Secretary to the Ministry of Social Empowerment, Welfare and Kandyan Heritage, Secretary to the Department of Wildlife Conservation, and Additional Controller General at the Department of Immigration and Emigration.
MPs Urge Shift to Eco-Friendly Bags Amid Confusion Over Polythene Charges
November 16, Colombo (LNW): A parliamentary committee has urged the government to explore the creation of a sturdier, eco-friendly paper carrier as a practical alternative to the polythene bags still widely used across the country.
The recommendation came from the Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability, which revisited the recent move to introduce a fee for polythene bags at the point of purchase.
Committee members said the proposal had stirred both public interest and uncertainty, prompting a closer look at whether the charge would genuinely curb reliance on polythene.
Committee chair Hector Appuhamy told officials that the policy’s effectiveness must be assessed carefully, noting that similar measures abroad had succeeded only when combined with accessible substitutes.
He added that environmentally sound paper bags—properly designed to withstand heavy use—could help both consumers and retailers transition away from single-use plastics.
Appuhamy also pressed for clarity on who had established the pricing mechanism for the proposed polythene charge. Officials replied that, contrary to public perception, the relevant Gazette notice did not actually stipulate a mandatory payment, suggesting that implementation details remain unsettled.
The Committee signalled that it will continue monitoring the issue, with several members hinting that broader reforms may be needed to meaningfully cut plastic waste in the long term.