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Vietnam, Sri Lanka Explore New Economic Partnerships in North

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A high-level delegation from the Embassy of Viet Nam, led by Ambassador Trinh Thi Tam, concluded a three-day visit to Sri Lanka’s Northern Province on 17–19 November 2025, marking a renewed push to strengthen economic, trade and investment ties between the two countries.

The visit, which included engagements with political leaders, government officials and the private sector, focused on unlocking opportunities in agriculture, fisheries, tourism, logistics and renewable energy.

Ambassador Tam began her visit on 17 November with a courtesy call on Northern Province Governor Nagalingam Vethanayahan, followed by discussions with Chief Secretary Thanuja Murugeson and sectoral heads in agriculture, education, health and tourism

 She commended the province’s ongoing progress in economic recovery, social stability and development efforts despite persistent structural challenges.

The Ambassador emphasised Viet Nam’s strong interest in expanding cooperation at the provincial level, noting that deeper engagement could help both sides leverage their comparative strengths.

Bilateral ties between Sri Lanka and Viet Nam, she said, had continued to mature since diplomatic relations were established 55 years ago, and now offered “significant potential for practical, mutually beneficial partnerships.”

Governor Vethanayahan highlighted the strategic value of the Northern Province as Sri Lanka’s closest maritime link to Southeast Asia, arguing that its fertile land, extensive coastline and untapped natural resources make it a promising hub for agribusiness, aquaculture, livestock development, tourism and clean energy.

He outlined provincial priorities such as special economic zones, industrial parks and logistics infrastructure, inviting Vietnamese firms to explore opportunities in export-oriented agro-processing, renewable energy projects, education, health services and infrastructure development.

Local authorities also briefed the delegation on ongoing constraints, including inadequate infrastructure, shortages of processing facilities and limited value-added industrial capacity.

They expressed hope that Viet Nam could support the region through technical assistance, training programmes and technology transfers, particularly in agriculture and food processing.

On 18 November, the Embassy partnered with the Jaffna Chamber of Commerce to host a roundtable discussion with leading businesses from the Northern Province. The event showcased Viet Nam’s investment climate, highlighting its skilled labour force, robust infrastructure, and expansive network of free trade agreements.

Ambassador Tam reiterated her country’s commitment to strengthening economic engagement, recalling the agreement reached during President Ranil Dissanayake’s State Visit to Viet Nam in May 2025 to increase bilateral trade to US$1 billion. Achieving this goal, she noted, would require deeper collaboration between both governments and the private sector.

Northern business leaders welcomed the renewed focus, noting the region’s readiness for high-tech agriculture, aquaculture, agro-processing and logistics partnerships. They encouraged Vietnamese companies to take a proactive role in identifying investment opportunities and requested assistance in capacity building, technology transfer and skills development to support long-term growth.

Sri Lanka Revives Refinery Expansion amid Past Political Resistance

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Sri Lanka’s long-delayed efforts to expand and modernise the Sapugaskanda Oil Refinery have gathered new momentum, with the government confirming that 20 investors have responded to the call for Expressions of Interest (EOIs) to establish a 100,000-barrel-per-day refinery under a Build-Operate-Transfer (BOT) model.

 Energy Minister Kumara Jayakody told Parliament that the EOI evaluation process is now in its final stages, marking what officials describe as the most progress achieved on this project in nearly two decades.

The revival of the project comes against the backdrop of repeated failures by successive governments to move forward with refinery expansion due to strong political and trade union resistance most prominently led by the Janatha Vimukthi Peramuna (JVP), whose petroleum-sector union consistently mobilised protests and strikes whenever the state sought private or foreign investment for Sapugaskanda.

Ironically, the same political movement now leads the National People’s Power (NPP) government, which is actively courting investors for the very project it once helped delay.

Past administrations, including those of Mahinda Rajapaksa, Maithripala Sirisena, and Gotabaya Rajapaksa, all made attempts to initiate refinery modernisation.

Each effort was met with large-scale demonstrations organised by the Ceylon Petroleum Corporation (CPC) workers’ union affiliated to the JVP.

These campaigns framed foreign involvement in the refinery as a threat to national assets and petroleum-sector jobs, with union leaders staging pickets outside the refinery, blocking critical operations, and warning of “privatisation by stealth.”

 As a result, multiple feasibility studies, negotiations with Middle Eastern investors, and preliminary procurement processes were abandoned halfway.

Today, the political landscape has shifted. Minister Jayakody told Parliament that Requests for Proposals (RFPs) would soon be issued under the government procurement framework, describing the refinery upgrade as “a national priority that cannot be postponed any further.”

Officials say the government views Sapugaskanda modernisation as essential to reducing the country’s heavy dependence on imported refined petroleum, which drains billions of dollars annually.

 According to ministry data, about Rs. 785 million has been allocated for land acquisition required for the expansion of the Sapugaskanda complex, with Rs. 510 million already disbursed as advance payments.

In 2022, the state spent US$600,000 approximately Rs. 137 million on a feasibility study that confirmed the economic viability of a modern, higher-capacity refinery. That study, officials say, had been left idle until the new administration revived the initiative.

The proposed refinery is expected not only to meet the domestic requirements of the Ceylon Petroleum Corporation but also support bunker fuel supply and petroleum exports, positioning Sri Lanka as a regional energy hub.

While the NPP government is now accelerating a project it once fiercely opposed, senior CPC officials note that the current economic climate leaves little room for ideological resistance. “The country needs refining capacity protests will not solve our fuel bill,” one official said on condition of anonymity.

For the first time in years, political will appears aligned with economic necessity. Whether this alignment will finally push the Sapugaskanda upgrade into realitor trigger fresh cycles of resistance remains to be seen.

Around 25 Cyber Crime Cases Reported Daily – Public Security Minister

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Public Security and Parliamentary Affairs Minister Ananda Wijepala told Parliament yesterday (20) that approximately 25 cyber crime cases are reported across the country each day.

Responding to a question raised by MP Rajeevan Jeyachandramoorthy, the Minister said that the Northern Province continues to record a high number of complaints related to cyber crimes.

He presented the following statistics for the Northern Province:

  • 2020: 24 cases
  • 2021: 577 cases
  • 2022: 654 cases
  • 2023: 472 cases
  • 2024: 1,539 cases
  • 2025 (up to October 31): 2,368 cases

Minister Wijepala further stated that computer crime sub-units have been established under the Criminal Investigation Department (CID), with units now operating in many districts from Police Headquarters to strengthen investigations and respond more effectively to cyber-related offences.

SLBFE Targets Training 5,000 Japanese-Proficient Sri Lankans by 2026

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Sri Lanka Bureau of Foreign Employment (SLBFE) Chairman Kosala Wickramasinghe says the bureau aims to create a pool of 5,000 Sri Lankans who have completed Japanese language training by 2026.

He made these remarks during a meeting held yesterday (19) between the SLBFE leadership and a delegation of senior officials from Japanese companies currently employing Sri Lankan workers.

The visiting Japanese delegation is in the country to assess opportunities for expanding labour recruitment from Sri Lanka and to further strengthen avenues for employment in Japan.

Wickramasinghe noted that, in addition to building a pool of 5,000 trained individuals, the SLBFE also plans to launch a new program to send approximately 1,000 Sri Lankans to Japan under the IM Japan scheme.

With the number of Sri Lankans seeking job opportunities in Japan steadily rising, the Chairman said that district-level training programs will be expanded to produce a workforce equipped with both language proficiency and technical skills.

Sri Lanka and India Hold Bilateral Talks on Sidelines of Colombo Security Conclave Meeting

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Sri Lanka and India held a bilateral discussion on the sidelines of the 7th National Security Advisers-level Meeting of the Colombo Security Conclave (CSC), which took place in New Delhi from 19–20 November 2025.

The Sri Lankan delegation was led by Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd.), while the Indian delegation was headed by India’s National Security Advisor Ajit Doval, KC, the Ministry of Defence said.

Both sides engaged in a constructive and wide-ranging dialogue covering key security matters of mutual concern. Discussions centered on strengthening cooperation under the five thematic pillars of the Colombo Security Conclave:

  • Maritime Safety and Security
  • Countering Terrorism and Radicalization
  • Combating Trafficking and Transnational Organized Crime
  • Cyber Security
  • Humanitarian Assistance and Disaster Relief (HADR)

The meeting reaffirmed the continued commitment of both nations to regional security, stability, and collaborative security frameworks.

Navy Seizes Major Narcotics Haul Off Southern Coast

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The Sri Lanka Navy has intercepted a multi-day fishing vessel off the southern coast, seizing a significant haul of narcotics including 261 kilograms of crystal methamphetamine (‘Ice’) and 115 kilograms of heroin.

Navy personnel also recovered a revolver, a pistol, and a magazine during the operation, which was carried out while the vessel was at sea. The boat, carrying six local fishermen, was escorted to the Tangalle Fisheries Harbour last evening for further inspection and processing.

Authorities said the suspects, along with the seized narcotics and weapons, will be handed over to law enforcement agencies for further investigation.

Former SJB Local Councillor Arrested Over Major Narcotics Smuggling Operation

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A former Samagi Jana Balawegaya (SJB) member of the Pannala Pradeshiya Sabha has been arrested by the Police Narcotics Bureau (PNB) in connection with the recent interception of a multi-day fishing vessel carrying a large haul of narcotics off the southern coast.

The arrest follows Thursday’s (20) joint operation by the Sri Lanka Navy and the PNB, carried out based on intelligence received by security forces. The vessel, which was transporting a substantial stock of illegal drugs, was intercepted in southern seas and later escorted to the Tangalle Fisheries Harbour along with its six crew members.

According to police, 15 packages containing an estimated 300 kilograms of heroin and 100 kilograms of crystal methamphetamine (‘Ice’) were recovered from the boat. Security personnel also discovered two brand-new firearms—a revolver and a 9mm pistol—on board.

Investigations are continuing to determine the broader network involved in the smuggling operation.

WEATHER FORECAST FOR 21 NOVEMBER 2025

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Showers or thundershowers will occur at times in Northern, North-central and Eastern provinces.

Showers or thundershowers will occur at several places in the other areas of the island after 1.00 p.m.

Fairly heavy falls above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle, Matara and Nuwara-Eliya districts.

Misty conditions can be expected at some places in Sabaragamuwa, Central, Uva, Western and Southern provinces during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

ADB Injects $300 Million into Sri Lanka’s Reform and Tourism Revival

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By: Staff Writer

November 20, Colombo (LNW): Sri Lanka has secured a vital lifeline from the Asian Development Bank (ADB), finalizing three major loan agreements worth a combined USD 300 million aimed at bolstering its financial stability, macroeconomic resilience, and long-term tourism potential. The deals were inked on 17 November 2025 at the Treasury in Colombo by Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma, and Takafumi Kadono, ADB’s Country Director for Sri Lanka.

Under the Financial Sector Stability and Reforms Program (Subprogram 3), Sri Lanka will receive USD 100 million after completing 11 policy actions focused on strengthening banking sector governance, improving asset quality, and expanding access to more inclusive and sustainable finance. The funding is intended to deepen systemic resilience and bolster the Central Bank’s regulatory capacity, marking the final stage of a multiyear reform effort targeting financial stability.

Another USD 100 million will support the Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1). This policy-based loan is linked to reforms that improve public financial management, enhance expenditure discipline, and boost domestic revenue mobilization. The funding complements Sri Lanka’s IMF-aligned reform program, reinforcing macroeconomic stability and supporting the government’s broader economic recovery.

The remaining USD 100 million is allocated to the Sustainable Tourism Sector Development Program (Subprogram 1), comprising a USD 70 million policy-based loan and a USD 30 million investment loan. The policy component will fund institutional reforms, capacity-building initiatives, and incentives to attract stronger private-sector participation in tourism. The investment portion is aimed at expanding infrastructure in Trincomalee and Dambulla/Sigiriya, improving destination management, easing congestion at key sites, extending the average duration of tourist stays, and boosting regional economic contribution.

The Ministry of Finance, Planning & Economic Development will oversee the policy-based loan programs, while the Ministry of Transport, Highways & Urban Development will implement the tourism infrastructure component. The government expects these reforms to accelerate recovery, reinforce financial resilience, and catalyze inclusive growth across multiple sectors.

Earlier in 2025, ADB reaffirmed its support with a USD 790 million pipeline of new loans and USD 6.9 million in grants aligned with Sri Lanka’s IMF-backed reform program. Although tourist arrivals in 2025 have rebounded to 2018 levels, earnings remain below pre-pandemic norms, highlighting the importance of the tourism-focused investment. ADB’s long-term roadmap for Sri Lanka (2024–2028) emphasizes restoring macroeconomic stability, accelerating domestic resource mobilization, and driving inclusive recovery through structural reforms.

This USD 300 million assistance from ADB represents a multidimensional package, supporting not only immediate fiscal and macroeconomic needs but also deep structural reforms in the banking system, governance, and tourism infrastructure. If successfully implemented, the program is expected to strengthen Sri Lanka’s foundation for sustainable and inclusive growth, helping the country recover from past economic shocks while positioning it for long-term development.

Public Debt Office Powers Expanded to Shape Sri Lanka Economy

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By: Staff Writer

November 20, Colombo (LNW): Sri Lanka is taking a decisive step toward strengthening the management of its public debt, with the Cabinet approving new regulations that formalise the powers and responsibilities of the Public Debt Management Office (PDMO) under the Public Debt Management Act No. 33 of 2024.

The new orders, published as Public Debt Management Orders No. 02 of 2025 in the Extraordinary Gazette No. 2459/52 on October 24, 2025, provide a structured framework for the PDMO to regulate primary dealers and oversee government securities transactions.

The Public Debt Management Act, enacted last year, transferred the authority to issue government loan securities from the Central Bank to the PDMO under Section 16, while Section 31 empowers the Minister of Finance to appoint primary traders and issue relevant directives.

The newly gazetted regulations operationalise these provisions, granting the PDMO authority to monitor compliance, issue operational guidelines, and evaluate the performance of primary traders involved in direct government security issuance.

Cabinet Spokesman Minister Dr. Nalinda Jayatissa explained that the regulations also formalise the PDMO’s role in overseeing non-dealer bidders and recommending corrective actions when necessary. “With the implementation of the Public Debt Management Act, these functions will be transferred to the Public Debt Management Office. The amendment outlines procedures such as monitoring primary marketers and issuing recommendations when required,” Dr. Jayatissa said at a recent post-Cabinet media briefing.

Analysts say that the creation of a dedicated debt management office represents a critical institutional strengthening step, particularly as Sri Lanka continues to manage high levels of public debt, estimated at over 115% of GDP in 2025. By centralising oversight of government securities issuance and primary dealer operations, the PDMO could improve transparency, ensure consistent compliance, and help reduce borrowing costs for the government.

However, experts also caution that the office’s expanded mandate must be accompanied by robust operational procedures and strong governance mechanisms to prevent regulatory lapses. Given the historical challenges in debt managementincluding delayed reporting, opaque auctions, and inconsistent policy enforcement effective implementation of the PDMO’s powers will be crucial to restoring investor confidence and stabilising domestic financial markets.

The PDMO’s oversight of primary dealers and non-dealer bidders is particularly significant for the government’s fiscal strategy. By monitoring performance and recommending corrective measures, the office can influence market liquidity, pricing of government securities, and the overall cost of borrowing. In the medium term, this could provide fiscal space for development projects, social programmes, and debt servicing, which are critical as Sri Lanka navigates ongoing economic recovery.

President Anura Kumara Dissanayake, in his capacity as Finance, Planning and Economic Development Minister, submitted the proposal to Parliament, signalling political support for strengthening institutional debt oversight. As the PDMO’s expanded mandate is phased in, the office will be tasked not only with operational supervision but also with fostering market discipline, improving transparency, and aligning debt issuance practices with broader economic objectives.

Economists say that if implemented effectively, the PDMO could play a pivotal role in stabilising Sri Lanka’s public finances, improving investor confidence, and reducing the risk of future debt crises. Its success, however, will depend on the clarity of regulations, adherence to governance standards, and proactive monitoring of market participants in a challenging economic environment.