May 15, Colombo (LNW): Sri Lanka has formalised a series of critical agreements with India’s Export-Import Bank (EXIM Bank), marking a major advancement in its ongoing external debt restructuring efforts.

The bilateral arrangements, signed in late March and early April 2025, are aimed at recalibrating the country’s debt obligations in a more sustainable and manageable framework.

The agreements pertain specifically to existing Lines of Credit and Buyer’s Credit Loan Agreements provided by India, with a cumulative value of approximately USD 930.8 million.

These revisions fall within the broader context of Sri Lanka’s coordinated approach to external debt restructuring, a key component of the country’s financial recovery plan following its 2022 economic collapse.

Representing Sri Lanka, K.M. Mahinda Siriwardana, Secretary to the Ministry of Finance, Planning, and Economic Development, signed the agreements. From the Indian side, Nirmit Ved, General Manager of EXIM Bank, and Amith Kumar, Deputy General Manager, signed the documents on behalf of the Lines of Credit and Buyer’s Credit Agreements, respectively.

These amendatory agreements are expected not only to enhance fiscal space for the island nation but also to reinforce the longstanding diplomatic and economic partnership between Colombo and New Delhi.

The collaboration comes at a time when Sri Lanka is still navigating the long road to macroeconomic stability, aided by both multilateral support and bilateral creditors.

India’s role has been especially notable. Alongside France and Japan, India co-chairs the Official Creditor Committee tasked with facilitating Sri Lanka’s debt resolution process.

New Delhi was also amongst the first to offer emergency financial assistance during the peak of the country’s crisis, providing vital fuel, food, and medicine through swift credit lines and grants that helped avert a complete socio-economic breakdown.

The Ministry of Finance in Colombo acknowledged India’s sustained involvement, crediting the country’s leadership and pragmatic engagement for helping Sri Lanka reach key milestones in its recovery.

Officials also noted that the renegotiated terms of credit with India provide a template for future bilateral arrangements and offer a stabilising influence in the broader restructuring landscape.

Whilst much progress has been made, Sri Lanka remains under close watch from international institutions such as the International Monetary Fund (IMF), whose Extended Fund Facility is contingent on successful restructuring outcomes with both bilateral and private creditors.

The latest agreements with India signal a constructive step forward in that regard, potentially paving the way for more favourable terms with other lending nations and bondholders.

By: Staff Writer

May 15, Colombo (LNW): Sri Lanka is focusing on strengthening its food science and technology sector through legislation and educational programs. The government is working to formalize the Sri Lanka Food Science and Technology Agency as a government-backed institution, while universities offer various diploma and degree programs in food science and technology

The Government this week decided to expedite the finalisation of a draft bill to legalise the Sri Lanka Food Science and Technology Agency through an Act of Parliament.

The move approved by the Cabinet of Ministers at their meeting on Wednesday, aims to formalise the agency’s status and strengthen its role in promoting food science and technology at both national and international levels.

Established in 2004, the agency consists of professionals and scientists in the field of food technology and has operated voluntarily since its inception. It is currently registered as a company limited by guarantee.

On 27 September 2016, Cabinet approval was first granted to transform the agency into a legally recognised body with Government sponsorship, allowing it to play a more structured and impactful role in the sector.

Although a draft bill was prepared by the Legal Draftsman and amended in consultation with the Attorney General, it has yet to be presented to Parliament. At its meeting held on 11 June 2024, the Cabinet of Ministers approved the preparation of the final version of the draft legislation.

“Considering the delay, the Cabinet approved the proposal submitted by Agriculture, Livestock, Lands and Irrigation Minister K.D. Lalkantha to expedite the completion of the legislative process,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at weekly post-Cabinet meeting media briefing on Thursday.

He said once enacted, the new law is expected to enhance the agency’s institutional capacity and facilitate its contributions to food innovation, safety and policy development.

University of Colombo: Offers a Diploma in Food Science & Technology, a one-year program. University of Sri Jayawardenepura: Provides a B.Sc. in Food Science and Technology, with a focus on practical skills and research.

Faculty of Graduate Studies, University of Sri Jayawardenepura: Offers an MSc. degree in Food Science and Technology. SLIATE: Offers a Food Technology program, including industrial training.

The Department of Food Science and Technology, University of Sri Jayewardenepura, participated in the 2024 exhibition, showcasing their work and promoting innovation in the food industry.

The Department of Food Science & Technology at the University of Peradeniya is engaged in research on food analysis, processing, and preservation.

The trends in food science and technology are focusing on sustainable food production, with innovations like vertical farming and regenerative agriculture.

By: Staff Staffer

May 15, Colombo (LNW): The United Kingdom’s newly proposed immigration policies, outlined in a recent White Paper, are expected to have significant implications for Sri Lankans currently residing in or seeking to move to the UK for work or study. The BBC Sinhala Service explored these impacts through insights from Sri Lankan nationals living in the UK.

Care Worker Visas to Be Scrapped

The most notable change is the decision to halt the issuance of visas for care workers — a route that brought thousands of Sri Lankans to the UK since 2020.

“This will be a major blow to Sri Lanka,” “From now on, no one can come to the UK as a care worker. However, those already here on a three-year visa may still be able to extend it.”

Longer Wait for Permanent Residency

The White Paper also proposes extending the eligibility period for permanent residency from five years to ten. Jayasekara raised concerns about how this change might affect those already working in the UK on long-term visas.

“There are people who are currently in the process of applying for permanent residency. If the policy affects them retroactively, it could become a major issue for many.”

These policy shifts have caused considerable anxiety among Sri Lankan migrants. “Many people reach out to me through social media because they’re worried about what the future holds.”“I Spent Over Rs. 900,000 to Come Here”

A Sri Lankan student from Gampola, currently in the UK on a student visa and working part-time in the care sector, told BBC Sinhala that his future remains uncertain.“I spent nearly Rs. 900,000 to get here. Some of my friends sold land or borrowed money to come. If we are forced to return, it would be a huge setback.”

A Move to Prevent Permanent Residency Applications?

Another young Sri Lankan working in the UK believes that the new visa rules are timed to block care workers recruited in 2020 from applying for permanent residency.

“In 2020, the UK recruited care workers from various countries at a salary of around £10,000. This year, many of them complete five years and would become eligible to apply for permanent residency. By extending the period to ten years, the government might be trying to stop them from staying permanently.”

“Many of My Friends Have Already Returned”

A Sri Lankan woman, currently on a post-study work visa, shared that several of her friends have already returned to Sri Lanka due to the uncertainties.

“Under the new rules, students get a two-year work visa after their studies, but even that is now uncertain. Four or five of my friends who studied with me have gone back home.”

She also noted the difficulty in finding jobs related to her field of study, often forcing graduates into unrelated employment sectors.

Demand in the Healthcare Sector Still High

Despite the visa tightening, the UK continues to face a massive shortage in its healthcare sector. In 2023, reports indicated over 110,000 vacancies across the NHS.

Sri Lanka remains among the top five countries contributing foreign-trained medical professionals to the UK. According to the Sri Lanka Bureau of Foreign Employment, 4,427 Sri Lankans were registered for employment in the UK in 2023.

As the UK balances immigration control with its labor market needs, thousands of Sri Lankans in the country or planning to migrate are now left facing an uncertain future.

By: Staff Writer

May 15, Colombo (LNW): Sri Lanka’s National People’s Power (NPP)-led government has confirmed it will not abandon the International Monetary Fund (IMF) programme, despite mounting public concern over the potential rise in electricity tariffs.

Deputy Finance and Planning Minister Harshana Suriyapperuma reiterated the government’s commitment during a televised interview on Sunday (May 11), stating that the NPP had pledged during the presidential campaign to uphold the IMF agreement.

“Stability is key,” Suriyapperuma said. “We always made it clear that we would negotiate with the IMF for a programme that benefits the people—but we would not walk away from it.”

He acknowledged that while the IMF mandates tough fiscal measures, including cost-reflective pricing in key sectors, such steps are necessary for long-term sustainability. “Institutions engaged in commercial activity must recover their costs. We must invest in the right infrastructure to reduce long-term electricity costs,” he noted.

The IMF, in its most recent review, recommended a revision of electricity tariffs to address the Ceylon Electricity Board’s (CEB) growing financial losses. Tariffs were previously cut by 20% in January, a move that significantly reduced revenue.

 Following this, the IMF indicated that the release of the fifth tranche of funding depends on further tariff adjustments, expected in June, following the completion of the fourth programme review.

However, Energy Minister Kumara Jayakody has expressed reluctance to increase tariffs, saying the government hopes to keep rates stable. “We haven’t made any decision just because the IMF suggested it. We are considering several factors like debt repayments and weather conditions before deciding,” he said.

Jayakody added that the CEB is yet to submit its revised pricing structure, which is expected to be presented to the Public Utilities Commission of Sri Lanka (PUCSL) by the end of May or early June. The Minister also cited recent rainfall as a potential mitigating factor, which could help avoid a tariff hike by reducing dependency on expensive thermal power.

Yet the reality facing the CEB is grim. In February 2025 alone, the utility posted a staggering net loss of Rs. 11.37 billion. This situation worsened following a nationwide power outage in early May, which resulted in an additional loss of Rs. 8.3 billion.

Initial reports dismissing the incident as being caused by a monkey have been debunked, but the financial burden now rests heavily on consumers.

The fundamental issue lies in the cost mismatch: the average cost of generating a unit of electricity (kWh) in February was Rs. 34.06, while the average selling price was just Rs. 22.55. Further compounding the crisis, system losses consume roughly 12% of total generation, slashing the volume of electricity actually sold.

The PUCSL and CEB are now in discussions over a potential tariff revision, with IMF oversight pushing for a transition to full cost-recovery pricing. With billions in losses and pressure mounting, a price hike appears inevitable—despite political assurances and public resistance.

By: Staff Writer

May 15, Colombo (LNW): The Ceylon Electricity Board (CEB) has reopened negotiations to revise the Power Purchase Agreement (PPA) for a proposed 300 MW Liquefied Natural Gas (LNG) power plant in Kerawalapitiya.

The plant will be developed by Sahasdhanavi Ltd., a special-purpose entity formed by Lakdhanavi Ltd., the lowest evaluated bidder selected through an international competitive process in 2021.

The renewed talks come nearly three years after the tender was awarded and are driven by significant policy and financial changes, including the removal of VAT exemptions on imported machinery and the introduction of the Social Security Contribution Levy (SSCL). These changes have raised construction costs, increasing the levelised tariff from Rs. 19.73/kWh to Rs. 20.15/kWh.

The revised draft PPA, which incorporates recommendations from the Technical Evaluation Committee (TEC), is now awaiting legal clearance from the Attorney General. These changes also redefine terms like “change in law” and adjust for recent cost escalations.

The second LNG plant is considered a strategic addition under Sri Lanka’s Least-Cost Long-Term Generation Expansion Plan (2018–2037). The Cabinet approved the project in 2020, and in December 2023, issued a Letter of Intent (LOI) to Lakdhanavi to develop the plant on a Build-Own-Operate-Transfer (BOOT) basis. Land in Muthurajawela has been allocated for the project.

President and Finance Minister Anura Kumara Dissanayake has reviewed the revised project proposal and approved advance payments for importing necessary equipment.

He also permitted the Ceylon Petroleum Corporation (CPC) to negotiate a Liquid Fuel Supply Agreement (LFSA), while the Treasury Secretary has been authorised to enter into an implementation agreement with Sahasdhanavi.

However, several challenges loom. The Public Utilities Commission of Sri Lanka (PUCSL) has raised concerns over a significant Rs. 52 per unit discrepancy in the projected cost of electricity generation, potentially pointing to a misrepresentation of actual costs. PUCSL has also flagged potential irregularities in the 2025 LNG procurement plan, raising questions about the project’s transparency and financial viability.

Energy Ministry Secretary Prof. Udayanga Hemapala acknowledged that the final unit cost of electricity has not yet been decided. He defended the decision to continue with the project without re-tendering, citing the urgency and complexity involved in launching a new bid process. He also clarified that while there had been a previous attempt to involve India in the project, the current administration is committed to completing the project through the original tendered bidder. As part of the broader energy strategy, the CEB is also involved in the Sobadhanavi LNG plant project, another step towards diversifying Sri Lanka’s energy mix with cleaner fuels. Yet, the ongoing concerns about cost estimation, LNG supply, and legal clearances suggest that further scrutiny and policy adjustments may be needed to ensure the project’s success and sustainability.