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Sri Lanka, Netherlands Explore Fisheries Cooperation and Heritage Preservation

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A high-level discussion to enhance bilateral cooperation between Sri Lanka and the Netherlands in the fields of fisheries and aquatic resources was held at the Parliamentary Complex between Fisheries, Aquatic and Ocean Resources Minister Ramalingam Chandrasekar and Netherlands’ Deputy Ambassador to Sri Lanka Iwan Rutjens. Ministry Secretary Dr. B.K. Kolitha Kamal Jinadasa was also in attendance.

Deputy Ambassador Rutjens underscored the longstanding historical and cultural ties between the two nations, highlighting the Dutch legacy in Sri Lanka’s Northern Province. He stressed the importance of safeguarding Dutch-built heritage sites, while also opening avenues for new development projects in the region. Dutch experts have already visited Jaffna, and Rutjens expressed his government’s keen interest in supporting heritage preservation efforts.

The Dutch footprint in Jaffna remains prominent, with landmarks such as the Jaffna Fort—originally built by the Portuguese and later expanded by the Dutch into its unique pentagon shape—standing as symbols of this shared history. Post-war, the Netherlands funded major restoration work on the Fort. Similarly, the ruins of the Dutch Kachcheri, and the Dutch-influenced islands of Delft and Kayts, continue to reflect this deep-rooted heritage.

While acknowledging these historic ties, Minister Chandrasekar sought Dutch technical expertise to advance Sri Lanka’s fisheries sector. Among his key proposals was the rehabilitation of the Oluvil Fisheries Harbour, currently unusable due to sand accumulation. He requested a sustainable technical solution, to which Rutjens assured consultations with Dutch companies, adding that concessional soft loan support may be considered if viable solutions are identified.

The Minister also proposed introducing environmentally friendly floating jetties in the Valaichchenai Lagoon in place of traditional concrete structures. He requested Dutch assistance in feasibility studies and environmental assessments, given Sri Lanka’s lack of prior experience in this field.

Additionally, Sri Lanka sought Dutch collaboration in aquatic plant tissue culture, particularly the micro-propagation of aquatic ferns. The Ministry expressed interest in partnerships between Dutch experts and local institutions, including NARANAQDA, and private sector stakeholders. In response, Rutjens welcomed the proposal, assuring that the Embassy would facilitate connections with Dutch universities and specialists to establish a structured knowledge-sharing programme.

Vehicle Emission Tests to Continue Despite Malpractices; New Regulations by 2026 – Minister Rathnayake

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Leader of the House and Minister of Transport, Highways and Civil Aviation, Bimal Rathnayake, told Parliament that conducting vehicle emission tests remains essential, despite concerns over malpractice by certain institutions carrying out the process.

Responding to a question raised by MP Lal Premanath, the Minister admitted that some organisations had engaged in fraudulent practices to pass vehicles during testing. However, he assured that by the end of 2026, existing agreements with emission testing companies will expire, and new agreements will be signed under stricter regulations to prevent future irregularities.

Rathnayake highlighted that air quality levels have significantly declined in several cities, including Colombo and Kandy, largely due to vehicle emissions. He stressed that the failure to modernise public transport has worsened the problem, but argued that funding and initiatives for emission testing cannot be considered wrong.

The Minister added that the introduction of electric vehicles (EVs) would substantially reduce vehicular emissions and help improve air quality in major cities. He also noted that the Government has already begun conducting random emission tests while continuously monitoring air quality levels.

Addressing another concern, Rathnayake explained that emissions are particularly high at traffic signal lights due to the absence of countdown timers, which cause motorists to accelerate unnecessarily while waiting. He said that timers have now been installed at several traffic lights in Colombo using government funds to help mitigate this problem.

Railways’ Inefficiency Contributed to National Decline, Minister Tells Parliament

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Leader of the House and Minister of Transport, Highways and Civil Aviation, Bimal Rathnayake, told Parliament yesterday that inefficiency within Sri Lanka Railways has been a major factor contributing to the country’s decline.

Responding to a question raised by MP Hector Appuhamy, the Minister admitted that Sri Lanka had collapsed politically, economically, culturally, and administratively, and that the breakdown of the Railway Department played a role in this downfall.

“I have repeatedly said that the Railways Department suffers from severe inefficiency and an inability to provide a proper public service. While some officials work with great dedication, there is also a large number of staff who are unwilling to work, alongside politically appointed and inefficient employees brought in by former transport ministers,” Rathnayake said.

He pointed out that years of neglect in essential recruitment, especially for technical officers, had worsened the crisis. His first Cabinet paper as Transport Minister, submitted in December 2024, sought approval to fill technical vacancies in the department. However, he noted that senior officials delayed the recruitment process for nearly a year despite Cabinet approval.

The Minister said a new General Manager has now been appointed and that ministry officials, engineers, and trade unions are working together more constructively.

“There is no magic wand to immediately eliminate inefficiencies inherited from previous administrations. But we are systematically addressing them, and within one year, we expect the Railway Department to improve by about 50 percent from its current state,” Rathnayake assured.

Postal Employees Ordered to Report for Duty; Leave Cancelled from August 17

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Postmaster General (PMG) Ruwan Sathkumara yesterday announced that all employees of the Postal Department are required to report for duty immediately, as the leave of all staff has been cancelled with effect from August 17, 2025.

He stated that any officer failing to report for duty will be deemed to have vacated their post, in line with the provisions of Chapter XV of the Procedural Rules.

The Postmaster General further noted that the Treasury has instructed that no salary payments will be released in August 2025 to employees who fail to report for work without approved leave.

Employees on medical leave must provide an official Government medical certificate as proof of illness, Sathkumara added.

Presidential Probe Committee Invites Public Submissions on SriLankan Airlines and Airport Corruption Cases

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The Presidential Special Investigation Committee, appointed to investigate past fraud, corruption, and malpractices at Airport and Aviation Services (Sri Lanka) (Private) Limited and SriLankan Airlines, has called for complaints, views, and proposals from the public.

This Committee was established in line with Cabinet Decision No. 25/1145/801/018 of July 1, 2025, following a Cabinet Memorandum submitted by President Anura Kumara Dissanayake on June 30, 2025. Its mandate is to inquire into historical irregularities and misconduct within the two state-owned institutions.

The Committee has invited submissions from employees, staff members, and the public on matters relating to both organisations. Complaints, views, and proposals may be forwarded on or before September 5, 2025, via email to [email protected] or through WhatsApp at 070-3307700.

Following submissions, appointments will be arranged for in-person discussions with the Committee.

WEATHER FORECAST FOR 22 AUGUST 2025

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Atmospheric conditions are getting favorable for evening thundershowers in the Northern, North-Central, Central, Uva and Eastern provinces during the next few days.

Showers or thundershowers will occur at several places in Northern, North-Central, Central, Uva and Eastern provinces and in Hambantota district after 1.00 p.m. Fairly heavy falls above 50 mm are likely at some places in above areas.

A Few Showers may occur in Western and Sabaragamuwa provinces and in Galle and Matara districts.

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

Tourist Arrivals Surge as Sri Lanka Tops World Beauty Ranking

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By: Staff Writer

August 21, Colombo (LNW): Sri Lanka has been crowned the most beautiful island in the world for 2025 by global travel authority Big 7 Travel, a timely accolade as the country sees a robust resurgence in tourism.

According to Sri Lanka Tourism Development Authority (SLTDA), over 1.17 million foreign visitors arrived in the first half of 2025—a 15.6% increase from the same period in 2024—highlighting the sector’s recovery momentum.

Monthly growth continues to impress: June alone saw 138,241 arrivals, up 21.8% year-over-year, marking the strongest monthly gain of the year.

As of mid-May, Sri Lanka had nearly reached one million tourists, with 956,639 visitors recorded by then.

Among source markets, India leads—followed by strong interest from the UK, Germany, China, and others.

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This tourism rebound is vital to the economy: the sector is expected to contribute significantly to national recovery, and the World Bank has recently approved a $1 billion loan to bolster key sectors including tourism.

But beneath the rosy figures lie mounting challenges. Iconic wildlife havens like Yala National Park are suffering from severe overcrowding, with too many safari vehicles overwhelming the ecosystem.

Leopard sightings—once a major draw—are increasingly rare, leaving many visitors disappointed. Facilities such as restrooms and sanitation areas at key rest stops remain substandard, with reports of filthy toilets, open doors, and lack of water damaging Sri Lanka’s image.

Without urgent investment in infrastructure, better visitor management, and sustainable planning, experts warn the tourism sector’s reputation could be at risk.

Health and safety concerns are also surfacing. The UK Foreign Office recently issued a travel advisory, noting outbreaks of the chikungunya virus in parts of Sri Lanka, as well as a lingering elevated terrorism risk in areas like Arugam Bay.

Travelers are advised to take precautions, especially against mosquitoes during dawn and dusk, and to remain vigilant in tourist areas.

Moreover, troubling incidents involving tourists and social media stunts have raised red flags. One Chinese tourist fell from a moving train during a photo attempt and is now in critical condition, prompting embassy advisories against dangerous poses on trains.

Sri Lanka stands at a crossroads. Having earned global praise for its natural beauty, the country now faces a critical test in delivering a tourism experience worthy of that accolade.

The opportunity is substantial—but only if officials act swiftly to invest in infrastructure, protect wildlife and public health, and manage crowds sustainably. At stake is not just visitor satisfaction, but the credibility and future of Sri Lanka’s tourism-led recovery.

India-Backed Jaffna Airport Upgrade Set to Take Off

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By: Staff Writer

August 21, Colombo (LNW): Sri Lanka is set to embark on the second phase of developing Jaffna International Airport into a fully operational international gateway, with Transport, Highways, Ports and Civil Aviation Minister Bimal Rathnayake stressing the importance of balancing ambition with feasibility.

The airport, located in Palaly, Jaffna, has long been seen as a strategic link to South India and beyond. Originally a military airfield, it was upgraded in 2019 with Indian assistance to handle short-haul international flights, mainly to Chennai. However, the current runway length of 1,400 metres restricts operations to smaller aircraft, limiting its commercial viability.

Under the proposed modernisation, the runway is expected to be extended to at least 2,300 metres to accommodate narrow-body jets such as the Airbus A320 and Boeing 737. This would enable Jaffna to handle more direct international routes, reducing dependence on Colombo’s Bandaranaike International Airport. Upgrades will also cover taxiways, aircraft parking bays, and passenger terminal facilities.

Minister Rathnayake emphasised that a comprehensive feasibility study will guide the expansion. “We are determined to make Jaffna Airport a true international gateway, but it must be backed by a strong business plan. We do not want another Mattala situation where infrastructure exists without passengers,” he said, drawing parallels to the underutilised Mattala Rajapaksa International Airport.

India’s role remains pivotal in the project. New Delhi funded the initial renovation at a cost of nearly USD 20 million, and currently, two Indigo Airlines flights operate weekly from Chennai to Jaffna. Analysts say that with proper upgrades, Jaffna could attract at least 300,000 passengers annually, given the significant Tamil diaspora in South India, Europe, and Canada seeking direct links to Northern Sri Lanka.

While cost estimates for the second phase have not been finalised, aviation experts suggest runway extension and terminal upgrades could exceed USD 60 million. Funding options under discussion include a mix of government allocations, concessional Indian loans, and potential private partnerships.

Beyond passenger traffic, a fully modernised Jaffna Airport could boost Northern Sri Lanka’s economy by facilitating agricultural exports, seafood shipments, and tourism development. The Northern Province, still recovering from decades of conflict, has been lobbying for enhanced connectivity to tap into regional trade and diaspora-driven tourism.

Tender calls for the expansion of the passenger terminal are expected to be announced within the next month, marking the first step of the second phase. However, the government insists expansion will only proceed after ensuring commercial sustainability.

For Sri Lanka, Jaffna Airport represents more than infrastructure—it is a test case of whether careful planning, regional cooperation, and economic necessity can combine to deliver lasting value, unlike earlier projects that became white elephants.

UK Trade Shake-Up Brings Relief to Sri Lanka’s Garment Exporters amid U.S. Tariff Turmoil

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By: Staff Writer

August 21, Colombo (LNW): As Sri Lanka’s garment exporters reel from a sharp 30% U.S. tariff introduced on August 1, 2025, a timely overhaul of the UK’s Developing Countries Trading Scheme (DCTS) offers a welcome reprieve. The comprehensive reform, set to take effect in early 2026, stands to reshape Sri Lanka’s export dynamics by granting more flexible sourcing rules and stalwart market access.

Under the current Enhanced Preference status, Sri Lanka benefits from tariff-free UK access only if garment inputs are sourced within South Asia and subject to strict processing rules. However, from 2026, these restrictions ease significantly:

Sri Lankan manufacturers will be allowed to source up to 100% of inputs from any country while retaining duty-free eligibility, aligning Sri Lanka with the treatment enjoyed by lower-income countries such as Bangladesh

Furthermore, the UK has carved out an Asia Regional Cumulation Group of 18 countries—including regional partners like India, Pakistan, and Indonesia—enabling Sri Lankan exporters to treat these regional inputs as domestic content for origin purposes and gain preferential tariff access

Sri Lanka’s apparel sector has shown resilience, recording an export earning of USD 4.7 billion in 2024, a near 5% year-on-year growth, though still trailing about 10% behind pre-pandemic (2019) levels

The UK, a vital market for the sector, saw apparel exports grow 7.65% last year, edging closer to 2019 benchmarks. The total Sri Lankan exports to the UK reached USD 923.7 million in 2024

.Sri Lankan authorities emphasize the UK’s significance: the UK ranks as the second-largest market for Sri Lankan apparel, accounting for approximately USD 675 million or nearly 15% of exports, supporting livelihoods across a million workers

The U.S. tariff, by contrast, threatens some USD 500–600 million in revenue loss, nearly 0.8% of GDP, and could imperil up to 50,000 jobs in a sector employing around 300,000, predominantly women

Despite not fully offsetting the blow from Washington, the UK’s enhanced preferences offer a crucial buffer. A prior 2023 analysis estimated Sri Lanka could save over £69 million annually in tariffs by fully utilising DCTS benefits

The scheme’s expanded sourcing routes and tariff-free access may help exporters sustain pricing competitiveness, capture more UK contracts, and safeguard jobs.

Bilateral trade between Sri Lanka and the UK remains dynamic. In the 12-month period ending Q1 2025, UK imports of Sri Lankan goods (including apparel) totaled £622 million, up 8.2% year-on-year, with clothing alone accounting for £398 million—roughly 64% of goods imports from Sri Lanka On the export side, UK goods exports to Sri Lanka were at £136 million over the same period

While the U.S. tariff poses a severe threat—potentially slashing export revenues and destabilizing employment—the UK’s revamped DCTS constitutes a meaningful counterbalance.

By allowing broader sourcing, expanding regional cumulation, and maintaining tariff-free access, the UK reforms give Sri Lanka’s apparel industry a vital strategic lever. Amid its economic recovery and IMF-supported stabilization path, Sri Lanka now stands better poised to diversify markets, preserve foreign exchange, and stabilize its most critical export industry.

BOI Pioneers Dedicated Japanese Investment Zone amid Rising Inflows

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By: Staff Writer

August 21, Colombo (LNW): The Board of Investment of Sri Lanka (BOI) has unveiled an ambitious plan to create the country’s first-ever investment zone exclusively for Japanese investors—an initiative aimed at deepening bilateral economic ties and leveraging unique Japanese industrial practices.

BOI Chairman Arjuna Herath first floated the idea during the Sri Lanka–Japan Investors’ Meeting and Conference at the World Trade Center in Colombo, inviting small, medium, and large Japanese firms to participate in a dedicated industrial park.

He noted that Japanese industrial culture and methods differ significantly from those of other nations, justifying the need for a tailored zone that can best accommodate Japan’s operational strengths.

Herath emphasized Sri Lanka’s long-standing appreciation for Japanese investments and highlighted the government’s efforts to create a highly conducive investment environment. Japanese attendees reportedly responded favorably, expressing interest across sectors such as manufacturing, technology, and services.

Importantly, this would mark the first such single-nation–focused investment zone in Sri Lanka—a significant milestone that positions Japan as a uniquely valued investment partner.

This new development complements Sri Lanka’s existing network of Special Investment Zones (including Export Processing Zones and Industrial Parks) administered by the BOI. Currently, there are 15 such zones spread across the country, including Katunayake, Biyagama, Koggala, Mirigama, Horana, Kandy and Seethawaka among others.

For example, the Katunayake EPZ, established in 1978 near the international airport, is the country’s largest, covering 332 acres and serving over 31,000 workers. It recently received acclaim from fDi Intelligence, earning a special honorable mention in the 2022 Free Zones Awards for its reinvestment strategy—where four large tenant firms pledged an additional US$ 26.5 million in investment and nearly 1,000 new jobs.

Overall, the BOI recorded a 38 % year-on-year increase in FDI receivable, rising from US$ 780 million in 2021 to US$ 1,076 million in 2022. Export figures (merchandise plus services) also rose by 7 % to US$ 9.385 billion, and employment under BOI zones grew by 3 %, adding 14,332 positions. Manufacturing, telecommunications, and port development led sectoral FDI growth, with port development surging an impressive 329 %.

Building on this performance, the government and BOI are moving forward on plans to establish five new investment zones across the North, East, Northwest, and Southern provinces—targeting areas like Kilinochchi, Paranthan, Trincomalee, Kankesanthurai, and Bingiriya Phase 2.

In summary, Sri Lanka’s BOI is championing a multifaceted strategy: boosting FDI with compelling results, expanding geographic reach through new zones, and now pioneering the country’s first nationality-specific industrial park for Japanese investors. This layered approach signals a bold new chapter in attracting targeted, high-quality foreign investments.