By: Staff Writer
September 16, Colombo (LNW): The Sri Lankan tourism industry is once again at a crossroads. While recent data shows foreign arrivals rising steadily, revenues are not keeping pace, raising doubts about whether the ambitious target of three million visitors and five billion US dollars in earnings for 2025 can be met.
Against this backdrop, the recent Sri Lankan-German Tourism Conference 2025, hosted in Colombo by AHK Sri Lanka under Germany’s Market Entry Program, has taken on particular significance as a potential lifeline for the sector.
The conference brought together industry experts, hoteliers, tour operators, government officials and German companies to forge new partnerships and promote a more sustainable and innovative model of tourism.
With Germany remaining one of Sri Lanka’s most important source markets, the discussions underscored how crucial German collaboration could be in shifting Sri Lanka’s tourism focus from raw visitor numbers to high-value, sustainable experiences.
Chief Delegate of AHK Sri Lanka Martin Klose made clear that German travelers are increasingly seeking authentic, eco-friendly and wellness-oriented holidaysan area where Sri Lanka has natural advantages but lags behind in service delivery and infrastructure.
Yet the numbers suggest the country is still falling short. In August 2025, Sri Lanka recorded 198,235 tourist arrivals, up 20.4 percent compared with the previous year, pushing total arrivals for the first eight months to 1.56 million.
This is a healthy increase of about 15 percent year-on-year. But the corresponding earnings tell a different story. Despite the influx, tourism revenue in August fell by 8.2 percent compared to 2024, amounting to just 258.9 million US dollars.
For the first eight months of 2025, total earnings rose only 5.7 percent to 2.29 billion dollars an increase far below the growth in arrivals. To meet the official annual target, Sri Lanka would need to attract around 360,000 visitors every month from September to December, double the August figures, and generate more than half its projected income in the final four months of the year.
This gap between arrivals and earnings highlights the central challenge facing the industry: tourists are coming, but they are spending less. The German initiative attempts to address this by emphasizing quality over quantity.
Conference panels explored what German travelers expect and how Sri Lanka can deliver, with inputs from Siddhalepa Ayurveda, Hilton Colombo Residences, Aitken Spence Travels and Cinnamon Life. Other sessions raised the provocative question of whether Sri Lanka could become “the new sustainable Bali,” focusing on regenerative tourism models that protect ecosystems while providing unique experiences.
German companies such as AquaRockBag, mascontour GmbH and Claussen Holding showcased solutions ranging from eco-technologies to training programs, while presentations highlighted new opportunities in MICE tourism, AI applications, and diversity and inclusion in hospitality.
The potential benefits of German support are significant. It can provide access to advanced expertise, finance, and credibility in a market that values sustainability. German endorsement of Sri Lanka as a destination can help attract not only German but wider European travelers who associate Germany with high standards.
Promoting under-visited regions such as Jaffna also offers a way to spread economic benefits and reduce pressure on overcrowded destinations. But risks remain.
The costs of upgrading infrastructure, training staff and delivering on promised sustainability standards are high, and failure to meet German visitor expectations could damage Sri Lanka’s reputation. Meanwhile, the country’s broader economic instability, currency fluctuations and inflation could erode any financial gains even if arrival numbers rise.
Ultimately, Sri Lanka’s tourism revival hinges on whether it can convert increasing arrivals into higher spending and repeat visitors. The German-Sri Lankan partnership offers a roadmap, but the clock is ticking.
Without swift improvements in quality, logistics, and marketing, the gap between lofty targets and harsh realities may only widen. German support may not be a silver bullet, but it could prove decisive in determining whether Sri Lanka’s tourism industry finally breaks free of its cycle of underperformance.
German Partnerships Key but Sri Lanka Risks Missing Tourism Targets
Passport Demand, Worker Migration Push Immigration Dept Revenue to New Highs
By: Staff Writer
September 16, Colombo (LNW): The Department of Immigration and Emigration in Sri Lanka is generating between Rs. 3 billion and Rs. 5 billion in revenue per month, driven by a marked increase in passport applications.
As more Sri Lankans look to leave the country for work or better prospects, enhanced service delivery from the immigration department has translated into financial gains but not without challenges in efficiency and integrity.
Deputy Controller General Mahesh Karunadasa told reporters that much of the revenue growth comes from faster passport services being implemented.
“We now provide one-day service passports within four hours, issuing around 1,500–2,000 daily via this urgent service. Meanwhile, the standard service issues about 1,000 passports each day.” On a busy day, total passport output including urgent, standard, and other type ranges between 4,000 and 5,000.
Fees are structured so that a normal passport usable for all countries costs Rs. 10,000, while an urgent “one-day” passport costs Rs. 20,000, regardless of whether the application is submitted online or in person.
With thousands of passports being processed daily, the department’s revenue intake on peak days may reach tens of millions of rupees.
Historical data show very high demand: 911,757 passports were issued in 2022, and 908,678 in 2023. In just the first five months of 2024, 381,678 passports had already been issued, putting that year likely on track for totals similar to the prior years.
The pattern continued into 2025, with long queues still common at immigration offices despite improvements in digital services and extension of counter operations.
Alongside passport demand, emigration for work has also increased sharply. According to the Sri Lanka Bureau of Foreign Employment, 144,379 Sri Lankan workers left for overseas employment between January and June 2025.
Of these, 88,684 were men and 55,695 women. The top destinations remain the Middle East: Kuwait led with 38,806 departures, followed by the UAE with 28,973, and Qatar with 21,958. East Asia is also rising in importance, with 6,073 going to Japan and 3,134 to South Korea in that period.
Remittances tied to foreign employment are likewise rising. In the first half of 2025, remittance inflows reached US$ 3.73 billion, an increase of roughly 18.9% compared to the first half of 2024, when remittances stood at US$ 3.14 billion.
Net migration statistics also point toward more people leaving than arriving: Sri Lanka’s net migration in 2024 was approximately −27,245 people, a slight increase in the magnitude of emigration compared to 2023.
Despite the revenue and demand, questions about efficiency, transparency, and possible corruption persist. Some applicants report that even when paying for urgent service, delays occur. Others allege unofficial “facilitation fees” or intermediaries demanding extra payments to speed up processing.
While the Immigration Department has made strides in reducing processing times and increasing its online/offline service options, civil society groups maintain that oversight remains weak.
The government’s non-tax revenue targets for 2025 rely heavily on these passport and migration flows. Analysts warn, however, that while high passport issuance and remittances may provide short-term gains, long-term risks include brain drain, diminishing domestic labour supply, and greater dependence on foreign income.
As 2025 progresses, the Department of Immigration and Emigration faces a delicate balancing act: capitalising on rising emigration and passport demand to meet revenue goals, while curbing inefficiencies, ensuring fairness in service delivery, and safeguarding against corruption—anything less could undermine public trust and economic stability.
Sri Lanka’s Economic Balancing Act: Short-Term Calm, Long-Term Doubt
By: Staff Writer
September 16, Colombo (LNW): Sri Lanka’s financial system appears steadier in the short run, but cracks are visible in the medium-term horizon, according to the Central Bank of Sri Lanka’s (CBSL) latest Systemic Risk Survey (SRS) for the second half of 2025. Conducted between late June and mid-July with input from 146 financial institutions, the survey found improved confidence over the next 12 months, but a dip in confidence for the three-year horizon, underscoring the fragile nature of the country’s recovery.
Respondents including banks, insurers, stockbrokers, and microfinance institutions—assessed the probability of a high-impact negative event as lower in the short term yet higher in the medium term. The shift reflects a domestic economy showing signs of revival while still tied to an unsettled global environment.
Global Headwinds
The CBSL highlighted “global macroeconomic risks” as a key concern, citing geopolitical tensions, high borrowing costs, and slowing global trade. Fitch Ratings recently projected global GDP growth to slow to 2.4% in 2025, from 2.9% in 2024. With US tariffs raising average effective rates to 16% and European growth stagnating, the external outlook for small, trade-dependent nations like Sri Lanka remains challenging.
China’s fiscal easing and currency depreciation support its exports, but weak domestic demand there limits the rebound in Asian trade. For Sri Lanka—whose recovery depends heavily on exports and worker remittances these dynamics could suppress growth.
Domestic Lending and Growth Dynamics
Domestically, credit conditions show a mixed picture. Private sector borrowings grew by Rs. 201.5 billion in July 2025, lifting total outstanding credit to over Rs. 9.5 trillion by mid-year. While this supports investment and consumption, the July increase was smaller than June’s Rs. 221.5 billion, suggesting momentum is uneven.
The CBSL’s Willingness to Lend Index rose in Q2 2025, extending a nine-quarter upward trend. Yet the index subsequently fell from 59.6 in Q2 to 41.4 in Q3, signalling banks’ growing caution despite favourable liquidity.
Signs of Stabilisation and Fragility
International lenders such as the IMF and World Bank expect Sri Lanka’s GDP growth to hover around 2–3% in 2025, a modest rebound following contraction in 2022 and fragile recovery in 2023-24. Inflation, which exceeded 70% at its 2022 peak, is projected to average below 8% in 2025, aided by tight monetary policy and stabilising food and fuel prices. Foreign reserves, replenished partly through IMF disbursements and debt restructuring progress, stand close to US$ 5–6 billion, offering short-term cover for imports and debt servicing.
Yet risks persist. The country remains heavily dependent on remittance inflows and tourism, both vulnerable to global shocks. Public debt ratios, while under renegotiation, still exceed 110% of GDP, leaving little room for fiscal manoeuvre.
The Road Ahead
The SRS paints a nuanced picture: short-term confidence in financial stability has improved, but doubts linger about resilience beyond 2025. As one Colombo-based economist observed, “We’ve moved from the edge of crisis to a fragile plateau. The danger is mistaking short-term calm for lasting stability.”
For Sri Lanka, the path to true economic stability lies in navigating external turbulence, sustaining reform momentum, and building buffers against future shocks. The CBSL’s warning is clear: while the immediate horizon may appear calmer, the medium-term risks cannot be ignored.
Aviation Student Acquitted After Nine-Month Detention Under PTA Over Social Media Post
September 16, Colombo (LNW): Mohamed Suhail, a 21-year-old student of aviation from Mawanella, has been acquitted by the Mount Lavinia Magistrate’s Court after spending nine months in detention under the Prevention of Terrorism Act (PTA), in connection with a social media post expressing opposition to Israel.
Suhail was originally taken into custody in October 2024 near the Israeli consular premises in Dehiwala. At the time, he was briefly held for failing to carry his national identity card, a matter which was resolved in court. However, he was re-arrested shortly thereafter under the PTA, reportedly due to an Instagram post that depicted the Israeli flag being stepped on — a post authorities interpreted as potentially inciting hatred or unrest.
Following extensive legal proceedings and prolonged detention, Suhail was granted bail on July 15, 2025. The case resumed today (16), where Attorney-at-Law Ilham Hassanali, appearing on behalf of the accused through the Lawyers for Social Justice organisation, petitioned the court for a full acquittal.
Counsel argued that police investigations had failed to uncover any evidence of criminal activity linked to the social media content in question, and therefore, it would be unjust to allow the proceedings to continue.
“It is both legally and morally indefensible to keep this young man entangled in a legal process when the police themselves have reported no crime has been committed,” the defence submitted during the hearing.
The Magistrate accepted the submission and ordered that Suhail be discharged and acquitted of all charges under the PTA, effectively bringing the controversial case to a close at the lower court level.
Meanwhile, in a move to seek redress for what is being described by rights advocates as a misuse of anti-terrorism laws, the Lawyers for Social Justice have filed a Fundamental Rights petition before the Supreme Court. Notices have already been issued in relation to the case.
Ex-Minister Rambukwella and Others Indicted Over Alleged Misuse of State Funds in Immunoglobulin Scandal
September 16, Colombo (LNW): Former Cabinet Minister Keheliya Rambukwella, along with several other individuals, was formally indicted today (16) before a special three-judge bench at the Colombo High Court over allegations of misappropriating public funds in connection with the procurement of substandard human immunoglobulin vials during the previous administration.
The charges stem from a high-profile investigation into irregularities in the purchase of vital medical supplies, which reportedly involved the use of state funds to acquire immunoglobulin injections that failed to meet established pharmaceutical standards.
Following the reading of the indictments, Deputy Solicitor General Lakmini Girihagama, appearing on behalf of the Attorney General’s Department, informed the bench of the state’s strong opposition to granting bail for the accused.
The prosecution maintains that the gravity of the offences, the potential for interference with witnesses, and the broader implications for public trust in government procurement processes necessitate remand custody at this stage.
Defence counsel representing the accused began presenting arguments in favour of bail, urging the court to consider their clients’ cooperation with the investigation thus far and citing the presumption of innocence until proven guilty.
Admissions Open for Korean Language Exam as Gateway to Jobs in South Korea
September 16, Colombo (LNW): The Sri Lanka Bureau of Foreign Employment (SLBFE) has officially opened the admissions process for the 2025 Korean Language Examination, a vital requirement for Sri Lankans aspiring to work in South Korea under its Employment Permit System (EPS).
This annual examination serves as the first step for those seeking employment in South Korea’s manufacturing and fisheries industries—two sectors that continue to welcome foreign workers through a structured and legal framework.
The EPS initiative, managed in partnership with the South Korean government, aims to streamline the process of recruiting skilled foreign labour while safeguarding the rights and welfare of overseas workers.
Aspiring candidates who meet the eligibility criteria—namely, being between the ages of 18 and 39—can obtain their examination admissions online by visiting the SLBFE’s official website at http://www.slbfe.lk. The deadline for downloading admissions is set for midnight on September 17.
The Korean Language Examination is designed to assess applicants’ language proficiency, a critical skill for effective workplace communication and integration into South Korea’s professional environment. Those who pass the test will move on to the next stage of the recruitment process, which includes further evaluations and placement within the appropriate industry.
The SLBFE encourages all eligible individuals to act promptly and ensure that they are registered in time. Officials have also reminded applicants to prepare thoroughly, as demand for positions in South Korea remains high due to competitive wages, favourable working conditions, and the opportunity to gain international experience.
World Bank Reaffirms Support for Sri Lanka’s Recovery and Growth Agenda
September 16, Colombo (LNW): The World Bank’s Vice President for South Asia, Johannes Zutt, has concluded a two-day official visit to Sri Lanka, marking his first since assuming the role. The visit underscored the World Bank Group’s commitment to strengthening its partnership with Sri Lanka at a time of economic transition and reform.
During his stay, Mr Zutt held high-level discussions with President Anura Kumara Dissanayake, Central Bank Governor Dr Nandalal Weerasinghe, Treasury Secretary Dr Harshana Suriyapperuma, and other key government officials. The meetings focused on Sri Lanka’s ongoing economic recovery efforts and the importance of accelerating structural reforms aimed at unlocking investment and expanding job opportunities.
The visit follows up on the commitment made during World Bank Group President Ajay Banga’s visit earlier this year, during which the institution pledged over US$1 billion in development financing for Sri Lanka over the next three years.
That partnership has already borne fruit with two major initiatives launched: a US$150 million renewable energy programme aimed at generating 1 GW of clean energy through private sector participation, and a US$100 million agriculture project focused on improving resilience and productivity in the sector.
Building on this momentum, further programmes are in the pipeline, including initiatives in tourism development, digital transformation, regional economic upliftment—especially in the Northern and Eastern provinces—and improvements in port infrastructure and logistics.
Mr Zutt praised the Sri Lankan government for the progress made so far in stabilising the economy after years of crisis, while noting that the next phase must centre on building sustainable growth through employment generation and private sector participation.
A key point of discussion was the country’s labour market challenges. With close to one million young people expected to enter the workforce over the next ten years—but projections showing only 300,000 new jobs likely to be created—Zutt emphasised the urgent need to stimulate private sector growth as a means to close this gap.
He reiterated the World Bank’s readiness to support the government’s reform agenda, with a particular emphasis on policies that encourage foreign direct investment, improve competitiveness, and deliver tangible development outcomes for citizens.
Govt Moves to Explore Voting Rights for Sri Lankans Abroad
September 16, Colombo (LNW): In a move aimed at strengthening democratic participation, the Cabinet of Ministers has given the green light to initiate a formal review of existing electoral laws with a view to granting voting rights to Sri Lankan citizens residing outside the country.
Currently, under Sri Lanka’s election framework, only those physically present within the country and registered on the electoral roll are eligible to vote. This limitation excludes a significant number of Sri Lankans living overseas—many of whom contribute to the nation economically and socially—from exercising their franchise in national elections.
The government acknowledges that this legal gap contrasts with practices in several other Asian democracies, such as India, Bangladesh, and the Philippines, which have established mechanisms allowing their diaspora communities to vote from abroad.
Recognising the growing demand for more inclusive electoral policies, Sri Lankan authorities now consider it both necessary and timely to revisit these outdated legal provisions.
The Constitution of Sri Lanka places sovereignty firmly in the hands of the people, exercised most directly through the electoral process. However, the absence of enabling laws has meant that this right has not extended beyond national borders, despite the increasing number of Sri Lankans living and working overseas.
To address this, the Cabinet has authorised the Minister of Public Administration, Provincial Councils and Local Government to assemble a multi-agency committee. This body will include representatives from the Election Commission, the Ministry of Foreign Affairs, the Ministry of Labour and Foreign Employment, the Ministry of Tourism, and other relevant institutions. Their mandate will be to conduct a comprehensive study on potential legislative reforms, as well as to propose new legal frameworks that could enable absentee or remote voting for overseas citizens.
Mithila Wegapitiya new Vice Chairman of LAUGFS Holdings
Mithila Wegapitiya has been appointed the Vice Chairman of LAUGFS Holdings Ltd., following the resignation of Thilak de Silva, who was also the Co-Founder, last week.
He currently serves as the CEO of LAUGFS Power PLC, one of Sri Lanka’s largest public listed renewable energy companies, as well as operating as a Group Executive Director for LAUGFS Holdings, one of Sri Lanka’s most diversified conglomerates hosting 26 companies ranging from Power and Energy, Oil and Gas, Manufacturing, Retail, and Pharmaceuticals.
This appointment is fresh off the acquisition of 50% of shares of LAUGFS Holdings by Vallibel Three Ltd., of renowned business leader Dhammika Perera.
Son of other Co-Founder and Chairman W.H.K. Wegapitiya, Mithila Wegapitiya is a Liquefied Petroleum Gas (LPG) and renewable energy leader, technology entrepreneur, and an innovation enthusiast stemming from a management and finance, global marketing, and information technology background.
Wegapitiya has over 15 years of experience working in large global organisations, such as Warner Bros Interactive Entertainment (London), Ve Interactive (London), Deutsche Bank (Asia), as well as Virtusa Corporation for Sri Lanka, Asia and the Pacific (APAC), and the Americas. He is also a thought leader and advocate in APAC for up-and-coming technologies, such as intelligent automation and Robotic Process Automation.
In 2016, Wegapitiya co-founded POTENZA, a global startup focusing on technology consulting and digital transformation services in the areas of SAP Consulting, Data and Analytics, and Intelligent Automation and Artificial Intelligence (AI). With a workforce of over 100+ consultants across the globe across 13 different countries headquartered in Singapore and Australia, POTENZA is a startup working with some of the biggest brands in the world, including that of Bombardier, Bacardi, AIA Insurance, Chip Mong, and many more.
Wegapitiya is an undergraduate of Aston University in the UK and holds an MBA from the prestigious Postgraduate Institute of Management (PIM) In Sri Lanka. He also served in the Executive Committees of the Sri Lanka Association for Software and Services Companies (SLASSCOM) Intelligent Automation Centre of Excellence and Federation of Information Technology Industry Sri Lanka (FITIS). He is also one of the youngest Board Members to serve Sri Lanka Computer Emergency Readiness Team (CERT|CC), which is the national body for and first line of defence for Sri Lankan cybersecurity and cyber threats.
Wegapitiya’s new role as Vice Chairman will focus on utilising the deep synergies between LAUGFS’s newfound series of sister companies, where the organisation would be transformed through financial restructuring of the Group, post-acquisition strategy formulation, organisational restructuring, new business development, and internationalisation.
Source: DailyFT
Government Dismisses Fears of Rice Shortage, Vows Action Against Market Manipulation
September 16, Colombo (LNW): Deputy Minister of Agriculture and Livestock Namal Karunaratne has firmly rejected concerns circulating about a potential rice shortage in the country, assuring the public that available stocks remain more than sufficient to meet national demand.
Addressing a press conference held at the Department of Agriculture in Gannoruwa, the Deputy Minister highlighted that both the previous harvest and the ongoing collection from the current season have provided ample reserves, including a steady supply of the much-discussed Keeri Samba variety.
“As of now, we have 47,500 metric tonnes of rice in storage, with a substantial portion made up of Keeri Samba,” he stated. “In addition, over 12 million kilogrammes of paddy are being stored in government-run warehouses, ready to be milled and distributed if necessary.”
The Deputy Minister went on to warn that certain unscrupulous groups are attempting to engineer an artificial shortage of premium rice varieties in order to drive prices up. “This is not a supply issue—it’s a deliberate attempt to mislead consumers and exploit the market,” he said, adding that the government has already taken steps to monitor and respond to such actions.
According to Mr Karunaratne, the Consumer Affairs Authority is currently investigating reports of hoarding and price manipulation, particularly in relation to Keeri Samba. Legal measures will be pursued against those found to be creating unnecessary panic or engaging in unethical trading practices.
The Deputy Minister urged the public not to fall prey to misinformation, reassuring citizens that the Ministry is closely monitoring the situation and will act swiftly to protect both consumers and the stability of the local food supply chain.