A malaria awareness march was held yesterday (25) under the theme “Say No to Malaria,” organized by the National Malaria Campaign of the Ministry of Health and Mass Media. The march was led by Dr. Anil Jasinghe, Secretary to the Ministry, and commenced from the Ministry’s premises, proceeding to Viharamahadevi Park in Colombo.

This event marked the 12th anniversary of Sri Lanka’s sustained malaria elimination and was part of the observance of World Malaria Day 2025. Despite the country’s successful elimination of malaria, travelers to endemic countries remain at risk, and the march aimed to raise awareness about preventive treatments and the importance of post-travel screenings.

After the walk, a public awareness session was held at Viharamahadevi Park, where Dr. Jasinghe explained the Ministry’s continued efforts to control and prevent malaria. He emphasized that both vector control and early detection and treatment are essential in eradicating the disease. He also highlighted the challenge of identifying imported malaria cases, comparing it to the difficulty of identifying terrorists, stressing the importance of proactive measures and scientific knowledge.

Dr. Prasanga Serasinghe, Director of the Malaria Control Campaign, noted that awareness programs are being conducted nationwide for World Malaria Day. Although Sri Lanka was declared malaria-free by the World Health Organization in 2016, recent cases have emerged among individuals who traveled abroad. In 2023, 62 malaria cases were recorded, 38 in 2024, and 14 cases have been reported so far in 2025. Symptoms of malaria include fever, headache, body aches, and in severe cases, difficulty breathing.

The march was attended by key officials, including the Director General of Health Services, Dr. Asela Gunawardena, and various health specialists, as well as representatives from the International Organization for Migration and field staff.

Showers or thundershowers will occur at most places of the island during the afternoon or night. The Intertropical Convergence Zone (where winds from the Northern Hemisphere and Southern Hemisphere converge) affects the island’s weather.

Several spells of showers may occur in coastal areas of the Western province and in Puttalam, Mannar, Galle and Matara districts in the morning.

Fairly heavy falls about 75 mm are likely at some places in Central, Uva and Eastern provinces and in Vavuniya and Polonnaruwa districts.

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

Misty conditions can be expected at some places in Centraland Uva provinces and in Ampara district during the morning.

Sri Lanka’s tea export earnings in the first quarter of 2025 climbed 5% year-on-year (YoY) to $370.9 million, marking the highest Q1 performance in over a decade, according to Asia Siyaka Commodities PLC. Export volumes also rose modestly, reaching 63.2 million kilograms, up from 62.3 million kilograms in Q1 of 2024.

The average Free on Board (FOB) value per kilogram for the quarter was $5.87, exceeding last year’s $5.69. In rupee terms, however, total earnings dropped slightly to Rs. 109.9 billion from Rs. 110.9 billion, largely due to the strengthening Sri Lankan Rupee, which appreciated from Rs. 313 to around Rs. 296 against the US dollar.

The value-added segment of exports saw notable growth, increasing its share to 56% of total shipments, compared to 53% last year. This rise was driven by higher volumes in packaged tea, tea bags, instant tea, and green tea categories. March alone saw tea exports totaling 23.43 million kilograms, an increase of 2.18 million kilograms from the same month in 2024. Although tea bags slightly declined, other product categories recorded year-on-year growth.

In terms of pricing, the March FOB value per kilogram in rupee terms dropped to Rs. 1,753.16 from Rs. 1,795.87. Yet in dollar terms, the average rose slightly by $0.04 to $5.92. Over the quarter, the average FOB in rupees declined by Rs. 40.63 compared to last year, though it reflected a $0.19 gain in US dollar terms.

Iraq remained Sri Lanka’s top tea export destination, increasing its purchases by 7% to 9.02 million kilograms. Russia followed with 6.33 million kilograms, slightly below the previous year’s figure. Libya experienced a dramatic surge, importing 5.31 million kilograms compared to just 1.03 million kilograms last year—a 416% increase.

Other key markets presented mixed results. Exports to the UAE dropped 35% to 4.54 million kilograms. Turkey imported 3.32 million kilograms (down 19%), while Chile saw a 41% rise to 3.07 million kilograms. Iran imported 2.78 million kilograms, slightly ahead of China’s 2.47 million kilograms. Saudi Arabia and Germany were also notable importers, with 2.23 million and 2.22 million kilograms respectively.

Despite a marginal drop in rupee revenue, the strong performance in export volumes and rising dollar-denominated earnings reflect a positive outlook for Sri Lanka’s tea industry moving forward, supported by increased demand and a growing share of value-added products.

Port City Colombo is being positioned as a leading fintech hub in South Asia, aiming to attract global investment, foster startup innovation, and integrate with international financial ecosystems.

This vision is outlined in a new report titled “Enhancing Port City Colombo as a Leading Fintech Hub in South Asia”, presented by Fintech Association of Sri Lanka (FASL) Founding President Rajkumar Kanagasingam to CHEC Port City Colombo Managing Director Xiong Hongfeng during the FinTech World Cup Regional Competition.

The initiative has backing from global fintech experts, with Professor Douglas Arner from the University of Hong Kong serving as the chief consultant.

The FASL, partnered with major global fintech networks such as the Dubai International Financial Centre (DIFC) Innovation Hub and the Global Finance and Technology Network (GFTN), is supporting the transformation of Port City into a competitive global fintech destination.

At the heart of this initiative is the Colombo International Financial Centre (CIFC) Fintech Innovation Hub. While full infrastructure is still under development, early operations may begin within Colombo’s Central Business District.

The hub is envisioned to offer fintech startups access to global markets, capital, and mentorship, modeled after successful ecosystems like Dubai’s DIFC and Singapore’s regulatory framework.

Dubai’s DIFC has become the largest financial innovation ecosystem in the MEASA region, supporting over 700 startups through regulatory sandboxes, innovation licenses, and accelerator programs. It has built robust international ties with financial centres such as New York, London, Singapore, and Mumbai.

Singapore, too, serves as a fintech benchmark, with its Monetary Authority (MAS) promoting innovation through regulatory sandboxes, venture capital initiatives, and the globally renowned Singapore FinTech Festival. From 2019 to 2022, Singapore attracted over $34 billion in fintech investment.

Port City Colombo, with its proposed CIFC, aims to emulate and adapt these models. Unlike India’s complex multi-agency regulatory landscape, the CIFC will offer a streamlined, unified framework that simplifies compliance and encourages growth. It also plans to attract regional startups, including those already active in Dubai, by offering investor-friendly policies and tax incentives.

To bring this to life, the CIFC Fintech Innovation Hub will incorporate regulatory sandboxes, startup accelerators, global partnerships, academic collaboration, and proof-of-concept platforms to support innovation and market entry.

With strategic leadership and global partnerships, Port City Colombo is poised to emerge as South Asia’s leading fintech gateway, redefining the region’s economic future through innovation and integration.

 The Sri Lankan government is urgently seeking alternative funding for over a dozen projects previously supported by the United States Agency for International Development (USAID), following a sudden freeze on foreign aid by the U.S. government. This move has disrupted several critical national programs across sectors like agriculture, climate change, disaster preparedness, entrepreneurship, and border security.

At the time of the aid freeze, five key projects across the Ministries of Justice, Finance, and Environment were actively receiving USAID support. These contributions amounted to approximately 1.34% of the government’s budget for major programs. Since 2019, USAID has provided Sri Lanka with financial support totaling US$233.4 million, with disbursements including $20.4 million in 2019, $41.9 million in 2021, $26 million during the 2022 crisis, and over $42 million in 2024 for governance and market-driven growth.

Among the affected initiatives is the Finance Ministry’s PARTNER project, a $22.9 million program developed with Deloitte Consulting to improve trade regulations through mechanisms such as a trade portal and biotech park. This, along with the $15 million “Efficient and Effective Justice” project, has now been suspended. The Sri Lanka Energy Project, worth $19 million, which supported institutions like the CEB, LECO, and SLSEA in promoting renewable energy, is also impacted. Additionally, USAID had allocated $46 million in 2023 to mitigate the country’s fertilizer crisis.

With USAID funds on hold, the Finance Ministry has confirmed it is actively pursuing new funding avenues. Negotiations are underway with foreign donors, friendly governments, and international financial institutions with a history of supporting Sri Lanka. The government is also looking at reallocating local resources by adjusting budget priorities and expenses to ensure the continuation of vital projects.

In response to the aid cut, there is a growing emphasis on public-private partnerships (PPPs) to attract private investment into public infrastructure and development. This shift aims to minimize reliance on foreign aid while sustaining momentum in essential sectors.

Furthermore, Sri Lanka is engaging in discussions with major multilateral lenders such as the World Bank and Asian Development Bank to secure loans or grants to fill the void left by USAID. While these efforts are ongoing, officials acknowledge the abrupt withdrawal of U.S. assistance poses serious challenges, including potential project delays and the urgent need to mobilize replacement funding.

A senior finance ministry official noted that the government remains committed to continuing these development initiatives despite the setback. He emphasized the importance of ensuring that critical services and project timelines are not adversely affected during the transition to alternative funding sources.

In conclusion, Sri Lanka is taking strategic steps to manage the fallout from the USAID freeze by diversifying its funding sources, leveraging domestic and private sector resources, and strengthening ties with multilateral institutions. However, the swift cessation of American aid has undoubtedly complicated the financial landscape for development planning in the country.

Sri Lanka’s service export sector, especially its IT and freelance industries, is facing a significant challenge following the introduction of a 15% tax on services provided to international clients. Effective from April 1, 2025, this new tax policy, announced as part of the 2025 national budget, aims to boost public revenue while aligning with global digital taxation trends.

However, experts warn that the move could severely impact Sri Lanka’s foreign exchange earnings, particularly in the rapidly expanding IT services and freelancing sectors.

In a major policy shift, the government has removed income tax exemptions on export services. Previously, earnings from export services were tax-exempt, provided they were routed through the local banking system.

This exemption had spurred steady foreign currency inflows, with service export revenues reaching US$ 3.46 billion in 2024—accounting for about 21.4% of the country’s total export earnings. The sector grew by 8.51% year-on-year, demonstrating its increasing importance as a foreign exchange earner.

However, the introduction of the 15% tax has raised concerns among stakeholders. Freelancers will be exempt from tax on their first Rs. 150,000 of income, with a 6% tax on the next Rs. 85,000, and the remainder taxed at 15%.

For larger service providers, the tax could lead to reduced earnings, higher operational costs, and less competitive rates. While provisions to exempt foreign taxes aim to soften the blow, the overall impact is expected to be negative, especially for IT freelancers and service exporters.

The tax’s impact is particularly concerning for the digital economy, which has thrived on relatively low taxation, encouraging both local talent and foreign clients.

 Experts argue that this new burden could discourage investment, deter freelancers from maintaining competitive pricing, and reduce overall financial incentives for those in the sector. The tax could also exacerbate Sri Lanka’s ongoing brain drain, with talented professionals potentially seeking more favorable tax environments abroad.

Former Treasury Secretary has warned that the new tax could cause a “shock” to freelancers, who are accustomed to retaining their full earnings. This, in turn, could lead many to reconsider operating in Sri Lanka and explore more tax-friendly markets. As global competition in the tech sector intensifies, Sri Lanka risks losing its edge in attracting and retaining freelance talent.

The government has defended the tax policy, citing the country’s fiscal constraints and the need for additional revenue. Cabinet Spokesman Nalinda Jayatissa explained that the measure is essential for meeting the country’s economic challenges.

However, the policy’s potential to diminish the competitiveness of Sri Lanka’s IT and freelance service sectors cannot be ignored. As the government strives to increase foreign exchange earnings, this tax may inadvertently lead to reduced participation in the sector.

According to the Sri Lanka Export Development Board (EDB), Sri Lanka’s service export revenue stood at US$ 3.46 billion in 2024. If the new tax is applied, it could result in a loss of approximately US$ 519 million, or Rs. 153.2 billion—an alarming figure for an economy struggling with fiscal imbalances.

 While the tax may be seen as a necessary fiscal tool, its potential to harm Sri Lanka’s IT and freelance service sectors calls for a reevaluation of the policy. 

The government must consider measures to mitigate the negative effects on the sector’s growth and competitiveness, ensuring that Sri Lanka’s service export industry remains resilient and attractive to both local and international talent.