October 21, Colombo (LNW): President Anura Kumara Dissanayake has called on the Federation of University Teachers’ Associations (FUTA) to develop a comprehensive strategy aimed at expediting the completion of undergraduate degree programmes without compromising academic standards.

The proposed plan is also expected to address the growing backlog of academic work and promote more robust research and development initiatives across the university sector.

The directive was issued during a meeting held at the Presidential Secretariat yesterday (20), where FUTA representatives raised concerns over persistent delays in completing degree courses and highlighted the challenges currently faced by academic staff in the public university system.

These delays, which have become more frequent in recent years, have been attributed to a range of administrative and systemic factors, including limited resources and disruptions to academic calendars.

Dissanayake assured the delegation that the Government stands ready to provide the necessary infrastructure, funding, and institutional support required to put such a plan into action. He emphasised the importance of delivering timely, high-quality education while also enhancing the nation’s capacity for research and innovation.

The discussion also turned to broader structural issues within the higher education sector, including the urgent need to attract and retain qualified academic staff. Both parties acknowledged that the quality of teaching and research is inextricably linked to the well-being and professional development of university academics.

Among those present at the meeting were Prime Minister and Minister of Education, Higher Education and Vocational Education Dr Harini Amarasuriya; Minister of Ports and Civil Aviation Anura Karunathilaka; and Labour Minister and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando. The FUTA delegation was led by Chairman Professor P.R. Weeratunga and Secretary Charudaththa Illangasinghe.

October 21, Colombo (LNW): Digital services provided by numerous state institutions in Sri Lanka have returned to normal following a technical failure that disrupted access for over a week.

According to the Information and Communication Technology Agency (ICTA), the issues affecting the Lanka Government Cloud (LGC) infrastructure have now been fully addressed, and all systems are functioning reliably.

The LGC, which forms the backbone of the government’s online operations, encountered a significant malfunction that led to interruptions across a wide range of digital platforms. As a result, citizens faced difficulties accessing various public services, including administrative, regulatory, and information portals.

The disruption impacted approximately 34 government departments and institutions, affecting services that are increasingly relied upon for day-to-day transactions.

A spokesperson for the ICTA confirmed today (21) that the necessary technical rectifications had been completed and that the cloud system’s stability had been verified. Measures have been implemented to prevent similar incidents in future, while affected services are being restored in stages to ensure consistency and performance.

Authorities acknowledged the inconvenience caused to the public and have assured that contingency plans are being developed to improve response times and system resilience.

October 21, Colombo (LNW): A newly released government gazette has officially redefined the responsibilities and areas of oversight for multiple ministries.

The changes, which come into immediate effect, were authorised by President Anura Kumara Dissanayake, reflecting the outcomes of a recent reshuffle within the Cabinet.

The updated distribution of duties among ministries is expected to address emerging national priorities, optimise coordination between departments, and align governmental operations with the administration’s evolving policy direction.

October 21, Colombo (LNW): The prevailing low-level atmospheric disturbance to the east of the island still persists, and it is likely to develop into a low pressure area within the next 24 hours, the Department of Meteorology said in its daily weather forecast today (21).

Under the influence of this system, cloudy skies are expected over most parts of the island.

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central, North-western, Southern and Northern provinces. Heavy falls above 100 mm are likely at some places in these areas.

Showers or thundershowers will occur elsewhere of the island after 1.00 p.m.

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

Marine Weather:

Naval and fishing communities engaged in fishing and naval activities in the deep and shallow sea areas around the island are requested to be vigilant in this regard.

Condition of Rain:
Showers or thundershowers will occur at times in the sea areas off the coast extending from Kankasanthurai to Pottuvil via Mannar, Colombo, Galle and Hambanthota. Showers or thundershowers will occur at several places in other sea areas around the island during the afternoon or night.

Winds:
Winds will be south-westerly or variable in direction and speed will be (25-35) kmph. Wind speed can increase up to (55-60) kmph at times in the sea areas off the coast extending from Galle to Pottuvil via Matara and Hambantota. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Trincomalee to Galle via Kankasanthurai, Mannar and Colombo.

State of Sea:
The sea areas off the coast extending from Galle to Pottuvil via Matara and Hambantota will be rough at times. The sea areas off the coast extending from Trincomalee to Galle via Kankasanthurai, Mannar and Colombo will be fairly rough at times. The other sea areas around the island will be slight to moderate.

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

By Adolf 

Sri Lanka’s economic meltdown in 2022 did not happen overnight. It was the result of a series of decisions—short-sighted, politically expedient, and economically reckless—that left the country dangerously exposed to global capital markets. Chief among them was the Central Bank’s policy of aggressive commercial borrowing between 2015 and 2019, under successive administrations, and most significantly, during the tenure of Dr. Indrajith Coomaraswamy as Governor.

Between 2015 and 2019, Sri Lanka issued seven International Sovereign Bonds (ISBs) amounting to nearly USD 10 billion, at interest rates ranging between 5.5% and 8.9%. The timeline tells its own story:

• 27 Oct 2015 – USD 1.5 billion (10-year)

• 11 July 2016 – USD 500 million (~5.5-year)

• 18 July 2016 – USD 1 billion (10-year)

• 11 May 2017 – USD 1.5 billion (10-year)

• 18 April 2018 – USD 1.25 billion (10-year)

• 7 March 2019 – USD 2.4 billion (5-year + 10-year tranches)

• 24 June 2019 – USD 2 billion (5-year + 10-year tranches)

In less than five years, the country’s external commercial debt stock ballooned from USD 5 billion to over USD 15 billion, while the maturity profile shortened dangerously. In essence, Sri Lanka borrowed short-term, high-cost money to fund long-term fiscal gaps and recurrent expenditure.

These borrowings were often defended by the Central Bank as part of “liability management exercises” — a euphemism for rolling over maturing debt with fresh, more expensive loans. The claim was that refinancing would “smoothen the maturity profile.” In reality, it merely postponed the crisis, piling up obligations on future governments while doing little to strengthen reserves or expand export capacity.

By the time the bond spree ended in 2019, Sri Lanka’s external debt service obligations exceeded USD 4 billion per year, while annual export earnings hovered around USD 11 billion. This mismatch was unsustainable. The foreign reserves, which stood at USD 8.2 billion in 2014, fell to USD 7.6 billion by end-2019 — despite billions borrowed.

The real tragedy was that none of these funds were directed toward growth-enhancing investments. Instead, they were used to prop up the rupee, fund public sector salaries, and pay off older loans. The government’s failure to pursue fiscal reforms — especially broadening the tax base and curbing subsidies — meant the country was trapped in a vicious cycle of debt rollover.

Dr. Coomaraswamy, while respected for his professionalism, also conferred Deshamanaya by President Sirisena ,  presided over one of the most imprudent borrowing phases in post-independence history. His administration failed to challenge the Treasury’s excessive appetite for external debt, even when the macro fundamentals did not justify it. The result was a debt profile heavily tilted toward commercial borrowings, with over 50% of foreign debt in ISBs by 2019 — a level of exposure that would later prove fatal.

When the COVID-19 pandemic struck and global markets tightened, Sri Lanka’s access to refinancing vanished overnight. With no fallback reserves and no IMF arrangement in place, default was inevitable. The first missed ISB payment in April 2022 marked the country’s first-ever sovereign default since independence — a direct consequence of the 2015–2019 borrowing binge.

In hindsight, the Central Bank’s strategy under Indrajith and his successors was fundamentally flawed on three counts:

1. Overreliance on commercial debt: Instead of mobilising cheaper, long-term concessional financing from multilaterals and bilateral partners, Sri Lanka chose to rely on volatile capital markets.

2. Poor debt management coordination: The Central Bank and Treasury operated in silos, with little medium-term fiscal strategy to manage repayment risk.

3. Lack of accountability: Borrowings were presented as “routine” or “market-friendly,” without adequate parliamentary scrutiny or public disclosure of repayment implications.

The outcome was predictable. By 2020, nearly half of Sri Lanka’s external debt was owed to private creditors, leaving the country with little room to negotiate or restructure quickly. The steep depreciation of the rupee, soaring inflation, and collapse in investor confidence were all symptoms of the same underlying disease: fiscal indiscipline compounded by monetary complacency.

The painful lessons of this period must not be lost on policymakers. Sri Lanka cannot afford to repeat the mistakes of 2015–2019 — where technocratic convenience and political expedience replaced prudent economic judgment. The Central Bank’s independence must be matched by accountability, and every dollar borrowed must be linked to measurable economic outcomes.

If there is one truth the bankruptcy laid bare, it is this: a nation cannot borrow its way to prosperity. Borrowing, when not anchored to reform, only delays the reckoning. Sri Lanka’s road to recovery must therefore begin not with more loans, but with institutional discipline, transparency, and a commitment to live within its means.

By: Staff Writer

October 20, Colombo (LNW): Sri Lanka is taking a major step to safeguard its most famous export — Ceylon Tea — by applying for Geographical Indication (GI) status from the European Union, a move aimed at protecting authenticity, curbing counterfeits, and boosting export value. The initiative, supported by a €1 million French-funded program, is expected to give Ceylon Tea stronger legal recognition and market advantage across Europe and beyond.

Sri Lanka Tea Board Chairman Raaj Obeysekere described the certification drive as a landmark effort to preserve the tea’s identity and enhance its global profile. Speaking at a forum in Colombo on “Perspectives on Geographical Indication in Sri Lanka,” Obeysekere said GI registration would strengthen brand credibility and reward the country’s tea producers.

“GI status is a powerful tool that safeguards the origin of Ceylon Tea, combats imitation, and positions it as a premium global product,” he said. “It ensures fair value for our producers and long-term benefits for rural communities.”

The certification initiative is being financed through a €1 million grant from Agence Française de Développement (AFD), France’s development agency, which has helped similar projects in nearly 20 countries.

AFD Country Director Yazid Bensaïd said the initiative reflects France’s long-standing commitment to promoting sustainable trade and quality assurance. “Tea is Sri Lanka’s second-largest export and employs more than one million people. The GI process here has been deeply participatory, involving over 500 stakeholders to define quality standards and establish a robust control system,” he noted.

The technical groundwork was led by France’s Agricultural Research Centre for International Development (CIRAD), which also assisted Sri Lanka in securing GI recognition for Ceylon Cinnamon in 2022. CIRAD Legal Researcher Dr. Delphine Marie-Vivien said the process was rooted in collaboration and trust.

“Defining rules collectively is essential to protecting a product’s reputation,” she said. “The strength of this project lies in the strong commitment and shared motivation of Sri Lankan partners.”

Plantations Minister Samantha Vidyaratne acknowledged France’s support since 2021, emphasizing that Ceylon Tea’s global reputation must now be reinforced through international standards. “Ceylon Tea has been synonymous with Sri Lanka for 150 years,” he said. “In today’s competitive markets, GI recognition is not just a label it’s a necessity. Our application has been submitted, and I am confident of its approval.”

French Ambassador to Sri Lanka Rémi Lambert said the GI recognition would put Ceylon Tea among the world’s most prestigious regional products. “Once registered, Ceylon Tea will join the global family of certified products whose heritage and quality are protected,” he said. “Just as Champagne and Piment d’Espelette represent France, Ceylon Tea will stand as a proud symbol of Sri Lanka.”

By: Staff Writer

October 20, Colombo (LNW): Sri Lanka recorded a sharp uptick in vehicle registrations in September 2025, with total units reaching 48,708, a 27 % increase from August.

Cars rose to 4,268 from 2,329, while SUVs and crossovers surged to 5,813 from 3,800. Motorcycles alone accounted for 32,626 registrations, up from 27,585, and three-wheelers jumped to 3,015 from 2,497.

This sharp expansion is being driven by the lifting of import curbs and a pent-up demand for personal mobility. The government is benefiting from high taxes on vehicle imports, which generate significant rupee tax revenue.

But that benefit comes with a major trade-off: each imported vehicle draws down foreign currency reserves, putting pressure on the external sector and the Sri Lankan rupee.

Analysts estimate that only about one-third of the retail price of imported cars and crossovers impacts the foreign exchange market because duties and taxes are paid in rupees but the rest still translates into dollars leaving the country.

With cars and crossovers in September reaching pre-crisis levels totaling 10,081 units up from 6,137 in August the scale of dollar outflow is beginning to rival other large import categories.

If an average import cost per car/SUV is US$20,000 (a conservative estimate given higher-end import vehicles), then 10,081 units translate into roughly US$201 million and potentially more dollars flowing out in one month.

Over a nine-month period, assuming similar pace, this could add up to US$1.6–2 billion, magnifying the risk to the country’s balance of payments.

On the revenue side, heavy taxes mean the state pockets large sums in rupees upfront, but the revenue cannot fully offset the foreign exchange impact. With external reserves tight and the rupee facing depreciation pressures partly driven by imported goods that draw on scarce dollars — the vehicle boom could undermine macro stability even as it boosts short-term revenue.

The key challenge for policymakers is balancing the immediate revenue wind-fall from vehicle import taxes against long-term currency stability and external sector resilience. Unless matched with export growth or foreign-exchange-earning measures, the surge in imports risks turning a Treasury win into a broader economic vulnerability.