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Sri Lanka Eyes UAE Oil Credit Deal amid Growing Regional Energy Ties

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By: Staff Writer

June 02, Colombo (LNW): Sri Lanka is in talks with the United Arab Emirates (UAE) to establish a long-term credit line to directly import crude oil and refined petroleum, as the island nation grapples with ongoing fuel needs and foreign exchange constraints.

The move could mark a significant shift in Sri Lanka’s energy procurement strategy, potentially easing pressure on its forex reserves and enhancing regional energy cooperation.

A high-level meeting was held at the Presidential Secretariat in Colombo between representatives from the Abu Dhabi National Oil Company (ADNOC) and a Sri Lankan delegation. Leading the discussions were Power Minister Kumara Jayakody and Deputy Economic Development Minister Dr. Anil Jayantha Fernando.

The talks focused on securing petroleum supplies, exploring investment opportunities in Sri Lanka’s energy sector, and laying the groundwork for joint ventures.

Key figures at the meeting included UAE Ambassador to Sri Lanka Khaled Nasser Al Ameri and ADNOC Senior Vice President for Crude and Condensate, Abdulla Al Qubaisi.

Talks revolved around the formation of a long-term oil supply agreement on concessionary terms, improving Sri Lanka’s refining capacity, and strengthening its position in the regional petroleum market. Energy Ministry officials confirmed preliminary discussions on the oil credit line were underway.

The two sides also agreed to sign a Memorandum of Understanding (MoU) aimed at enhancing bilateral cooperation in the energy sector.

The initiative follows recent discussions between UAE’s Ambassador Sheikh Ahmed Ali Hamad Al Mualla and Sri Lanka’s Energy Minister Udaya Gammanpila, who highlighted the urgency of securing affordable oil due to a dollar shortage.

Trincomalee, a key port city on Sri Lanka’s east coast, is also set to become a focal point in a trilateral energy partnership involving India, Sri Lanka, and the UAE. Under a framework agreement signed by the three nations,

Trincomalee could be transformed into a major energy hub. The plans reportedly include infrastructure projects such as a potential pipeline between India and Sri Lanka and the development of a new oil refinery.

However, exact details of UAE’s role in the Trincomalee initiative remain unclear. Indian Foreign Secretary Vikram Misri confirmed that refurbishing the World War II-era Trincomalee Oil Tank Farm – partially owned by Indian Oil Corp – could be part of the project. While the broader plan awaits further business-to-business discussions, it underscores India’s increasing engagement in Sri Lanka’s energy sector.

Meanwhile, China’s presence in Sri Lanka’s energy landscape remains a point of tension. A proposed $3.7 billion oil refinery in Hambantota by China’s Sinopec has raised strategic concerns in New Delhi, particularly given the port’s proximity to India. If completed, this would be Sinopec’s first fully controlled overseas refinery.

For the UAE, closer collaboration with India in South Asia serves its broader strategic interests, especially amid growing regional competition with Saudi Arabia. The trilateral framework with Sri Lanka and India could bolster Abu Dhabi’s influence and complement India’s already significant footprint in Sri Lanka’s energy sector.

Govt Seeks Chinese Joint Ventures amid Economic and Geopolitical Shifts

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By: Staff Writer

June 02, Colombo (LNW): In a bold bid to revive its economy, Sri Lanka has extended a direct invitation to high-level Chinese companies to form joint ventures with local counterparts in key growth sectors including agro-processing, fisheries, ICT and BPO, apparel, tourism, and renewable energy.

The announcement was made by Labour and Economic Development Deputy Minister Dr. Anil Jayantha Fernando at the “Sri Lanka and China Trade and Investment Forum 2025” held in Colombo.

The forum, co-hosted by the Ceylon Chamber of Commerce and Chinese business chambers, marked a significant deepening of Sino-Lankan economic ties. Attended by China’s Commerce Minister Wang Wentao, Ambassador Qi Zhenhong, and over 100 Chinese delegates from 77 firms, the event symbolized Sri Lanka’s push to convert diplomatic goodwill into tangible investment.

Dr. Fernando emphasized the importance of moving from dialogue to concrete action, calling the event “a special step in our journey” and underlining the island’s commitment to attracting ethical, sustainable, and value-added investment.

He presented Sri Lanka’s improved macroeconomic indicators—including 5% GDP growth, $12 billion in exports, and over 2 million tourist arrivals in 2024—as signs of renewed potential.

China’s presence, through four major chambers of commerce, points to serious interest in sectors like agriculture, manufacturing, clean energy, textiles, and digital services. Business-to-business meetings focused on partnerships in the automotive supply chain, tea plantations, clean technology, and engineering further underscored this momentum.

However, this strategic alignment with China raises geopolitical concerns, particularly for India. New Delhi, which provided over $4 billion in aid to help Sri Lanka navigate its recent economic crisis, may view Colombo’s pivot toward Beijing with caution.

India has long regarded the Indian Ocean region as its sphere of influence, and growing Chinese economic entrenchment—especially through joint ventures—could be perceived as a challenge to regional balance.

Sri Lanka’s balancing act is delicate. While the economic lifeline offered by China could accelerate recovery, the island nation must manage its diplomatic relationships carefully, ensuring that increased Chinese investment does not strain its ties with India or other regional partners.

Critics warn that overdependence on China could echo past debt-related pitfalls, while others argue that diversified partnerships are essential for long-term resilience.

As Sri Lanka and China near the 70th anniversary of diplomatic relations, the forum marks a turning point—one that could shape the nation’s economic and geopolitical trajectory for years to come.

Monsoon activity continues: Unstable weather conditions expected across several provinces

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June 02, Colombo (LNW): Intermittent showers are anticipated in the Western, Sabaragamuwa, Central, and North-Western provinces, with rainfall expected to occur in the southern districts of Galle and Matara as moisture-laden monsoonal winds continue to influence weather patterns across the island, the Department of Meteorology said in its daily weather forecast today (02).

Meanwhile, isolated evening or night-time showers, possibly accompanied by thunder, are expected in the eastern regions, particularly in Ampara and Batticaloa, as well as in parts of the Uva Province.

The department has highlighted that although rainfall in these areas may be sporadic, thunderstorm activity could lead to sudden downpours and localised disruptions.

In addition to the rainfall warnings, forecasters have noted the likelihood of persistent strong winds in several regions. Wind speeds reaching between 30 to 40 kilometres per hour are predicted in areas along the western slopes of the central hills and in northern and southeastern districts including Hambantota and Trincomalee. The Northern, North-Central, and North-Western provinces are also expected to be affected by these gusty conditions.

Given the current meteorological outlook, the public is advised to take safety measures, particularly during periods of heavy rain or thunderstorms.

Malayaga Queer Voices Rise in Colourful March for Equality in Kandy

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By: Isuru Parakrama

June 01, Colombo (LNW): In a vibrant and defiant show of solidarity, members of the Malayaga community and civil society allies gathered in Kandy this afternoon (June 01) to mark a landmark celebration of queer pride.

The event brought together a diverse cross-section of Sri Lankan citizens committed to challenging entrenched discrimination and calling for long-overdue recognition of the rights of individuals across the spectrum of sexual orientation, gender identity, expression, and sex characteristics (SOGIESC).

Organised under the banner of ‘Malayaga Pride’, the march coursed through the heart of the city in a colourful procession. Traditional drummers and dancers from within the queer community led the way, blending cultural heritage with modern activism.

Participants carried rainbow flags, placards, and banners, all conveying a unified call for justice, dignity, and the dismantling of outdated laws that continue to marginalise LGBTQIA+ individuals in the country.

This year’s demonstration placed a strong emphasis on the intersection of ethnic and queer identities. The Malayaga people, descendants of Indian Tamils brought to Sri Lanka during colonial times to work on tea estates, have long faced systemic socio-economic and political exclusion.

Within this historically oppressed group, queer individuals often endure double layers of discrimination — both from broader society and within their own communities.

A core demand echoed throughout the rally was the repeal of Sections 365 and 365A of Sri Lanka’s Penal Code — archaic colonial-era laws that criminalise consensual same-sex relationships between adults. Although rarely enforced in recent years, these laws continue to legitimise societal stigma and expose LGBTQIA+ individuals to harassment and discrimination by authorities.

Marchers also used the platform to highlight issues that transcend identity politics, focusing on broader struggles for economic justice and land rights — both of which disproportionately affect the Malayaga population.

Organisers noted that many within the community continue to live in informal settlements on estate land with limited access to basic public services, making it difficult for queer individuals to find safe spaces, access healthcare, or live openly.

The march was backed by grassroots organisations and activists working on both human rights and social justice. Public speeches called on legislators to move beyond symbolic gestures and deliver meaningful legal reform.

Participants also underscored the need for inclusive public policy that reflects the lived experiences of all citizens, regardless of gender or sexuality.

Photo Courtesy: Denver Mark Facebook Page

Russian envoy urges Colombo to demonstrate commitment if seeking BRICS membership

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June 01, Colombo (LNW): Russia’s Ambassador to Sri Lanka has encouraged the island nation to make tangible moves if it aspires to become part of the BRICS alliance, indicating that verbal expressions of interest must be backed by concrete diplomatic engagement.

Addressing a gathering at the Bandaranaike International Centre for International Studies in Colombo, Ambassador Levan S. Jagaryan commented on the subject of Sri Lanka’s potential entry into the BRICS grouping, which comprises Brazil, Russia, India, China, South Africa and several newly admitted nations.

The envoy, whilst acknowledging that both Moscow and Beijing have shown goodwill toward Sri Lanka in recent years, expressed disappointment at what he described as a lack of visible enthusiasm from Colombo to engage meaningfully with the bloc.

Jagaryan recalled an official meeting held in October of the previous year with President Anura Kumara Dissanayake, during which he personally delivered a letter of invitation from Russian President Vladimir Putin, encouraging Sri Lanka to take part in the BRICS summit.

Despite this gesture, the ambassador noted that the Sri Lankan head of state had declined the invitation, citing the country’s then-approaching general elections as a reason for being unable to make the visit.

The ambassador was candid in his remarks, stating that he had received multiple queries from the media and diplomatic circles alike regarding whether Sri Lanka had any intention of aligning itself with BRICS.

He made it clear that admission into the group is a collective decision involving all existing members and is contingent upon the applicant nation undertaking a series of procedural and diplomatic steps.

“It’s not a one-country decision,” Jagaryan pointed out. “All BRICS members must be on board for any expansion to take place. That means if Sri Lanka is truly committed, it must initiate a serious and strategic process, rather than simply making rhetorical gestures.”

His comments have been widely interpreted as a diplomatic nudge for Colombo to move beyond passive engagement and signal its geopolitical intentions more clearly, particularly at a time when several emerging economies have shown interest in joining the bloc.

The BRICS grouping has recently expanded to include new members, as it seeks to reposition itself as a counterbalance to Western-dominated global institutions.

Tourist arrivals surpass 120k in May, 2025

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June 01, Colombo (LNW): Sri Lanka’s tourism sector has recorded a steady rise in international arrivals, with over 120,000 visitors entering the country in May alone, according to the latest statistics released by the Sri Lanka Tourism Development Authority (SLTDA).

This brings the total number of tourist arrivals for the year up to just over one million, signalling a continued recovery in the island’s vital tourism industry.

India remains the dominant source of inbound travellers, contributing more than 42,000 visitors in May, which accounts for nearly 36 per cent of that month’s total arrivals.

The United Kingdom, China, Germany, and Bangladesh followed as significant contributors, with each country sending thousands of holidaymakers during the month.

The UK provided over 8,300 visitors, while China sent nearly 8,000. Germany and Bangladesh trailed closely, with approximately 6,500 arrivals each.

Cumulatively, the first five months of 2025 have seen 1,017,004 tourists arrive in Sri Lanka, a figure that reflects both growing confidence among global travellers and renewed marketing efforts by the tourism authorities.

Indian tourists alone accounted for nearly 200,000 of this total, followed by significant numbers from Russia and the UK, which contributed more than 110,000 and 95,000 travellers respectively.

Industry analysts see this continued influx as a promising sign for the country’s economic prospects. Tourism, which was once a primary revenue earner for Sri Lanka, suffered severely during the pandemic and subsequent economic crisis.

However, the gradual restoration of political stability, improvements in infrastructure, and targeted promotions in key markets have helped to reignite global interest in Sri Lanka as a travel destination.

Efforts by the SLTDA and other government agencies to streamline visa processes, enhance safety for tourists, and invest in sustainable tourism practices are said to be bearing fruit.

Hoteliers, travel operators, and local businesses in popular regions such as the southern coast, the central highlands, and the cultural triangle have reported encouraging signs of recovery and forward bookings.

In parallel, Sri Lanka’s ongoing attempts to attract more diverse visitor segments — including wellness tourists, digital nomads, and eco-conscious travellers — have been supported by newer travel campaigns and strategic alliances with foreign travel agencies.

Moreover, the resumption of direct flight routes from cities like Mumbai, London, Shanghai, and Berlin has improved accessibility.

Despite global economic uncertainties and fluctuating airfares, the country’s affordability compared to other destinations in the region has made it particularly attractive to budget-conscious tourists.

Local authorities have expressed cautious optimism that the country could surpass 2.5 million tourist arrivals by the end of 2025 if the current momentum holds.

Sri Lanka launches nationwide campaign to promote tax responsibility

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June 01, Colombo (LNW): A nationwide initiative aimed at improving public understanding of taxation and encouraging broader compliance with revenue regulations is set to commence across Sri Lanka on June 02.

Branded as ‘National Tax Week’, the campaign is part of a government-led effort to deepen civic engagement in the country’s tax framework and enhance fiscal responsibility.

President Anura Kumara Dissanayake is expected to officially inaugurate the initiative at a ceremony held at the Presidential Secretariat, marking the start of a week-long programme spearheaded by the Inland Revenue Department (IRD).

Deputy Commissioner General of the IRD, P.K.S. Shantha, confirmed that the campaign will run until June 07 and will involve extensive outreach to inform the public about the advantages of timely tax payments and the procedures for acquiring a Taxpayer Identification Number (TIN).

The initiative is expected to involve mobile units, workshops, and collaboration with local authorities to reach individuals in both urban and rural areas.

The campaign follows recent regulatory changes which have made the TIN increasingly central to everyday transactions. Under new directives, a valid TIN is now mandatory for registering a motor vehicle under a personal name, and is also required to open certain categories of bank accounts.

These measures are intended to formalise economic activity and broaden the national tax base, especially in a context where many individuals and businesses have traditionally operated outside the formal revenue system.

More than ten million Sri Lankans have already secured their TINs, with the IRD offering online verification through its official website. Authorities believe this figure could rise significantly during the week-long campaign as awareness spreads and barriers to registration are addressed.

Sri Lanka’s external economic outlook displays notable resilience

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June 01, Colombo (LNW): Sri Lanka’s external economic outlook displayed notable resilience in April 2025, with sustained inflows from tourism and overseas remittances continuing to support the island’s balance of payments, according to a monthly update released by the Central Bank’s Economic Research Department.

Despite headwinds in global trade, the Central Bank reported a continuing surplus in the monthly current account for the fourth consecutive month, a sign of steady progress in stabilising the economy’s external position.

The strong inflow of foreign currency from returning tourists and migrant workers has played a central role in cushioning the country’s finances during a challenging period of recovery.

However, the report noted a widening of the merchandise trade deficit compared to the same period last year and the previous month. A key contributor to this imbalance was the surge in imports, which outpaced export growth.

April saw imports jump by 17.5 per cent year-on-year, with motor vehicle purchases alone accounting for US$ 134 million in expenditure. In contrast, merchandise exports grew by a more modest 10.4 per cent.

Whilst the increase in imports indicates a revival of domestic demand—often associated with economic recovery—it also reflects renewed strain on the country’s trade balance. Nonetheless, the Central Bank noted a favourable shift in the terms of trade, as a sharper fall in global import prices compared to export prices offered a degree of relief.

In the capital markets, the dynamics were more nuanced. Foreign participation in government securities saw a slight reversal, with a marginal outflow of US$ 12 million, following a net inflow in the preceding month.

In contrast, activity in the Colombo Stock Exchange showed signs of renewed interest from foreign investors, reversing the previous trend of capital flight with a modest net inflow of US$ 3 million into both primary and secondary equity markets.

New Local Authority leaders officially announced ahead of June term commencement

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June 01, Colombo (LNW): An official gazette has been released confirming the appointments of key leadership positions across numerous local government councils in Sri Lanka.

The document lists the individuals designated to serve as Mayors, Deputy Mayors, Chairpersons, and Vice-Chairpersons within local bodies across the island, following the recent conclusion of the Local Government elections.

The appointments stem from formal recommendations submitted by both political parties and independent groups that secured control over their respective local authorities during the polls.

These selections were compiled by the Election Commission, which has since moved to officially publish the names, aligning them with administrative districts for greater clarity.

The newly confirmed office-bearers represent a range of political affiliations, reflecting the diverse electoral landscape that emerged from the local contests. Each name listed in the gazette has been vetted and finalised based on the majority positions achieved by the respective parties and groups within the relevant councils.

Additionally, the list of elected and nominated councillors for each local authority has also been made public. This follows procedural requirements to ensure transparency and allows constituents to familiarise themselves with their local representatives ahead of the official start of duties.

The term of office for all local government institutions has been set to begin tomorrow (02), as outlined in a prior notification issued by the Ministry of Public Administration, Provincial Councils, and Local Government on February 17.

New Covid subvariants detected in Sri Lanka: Health officials urge continued vigilance

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June 01, Colombo (LNW): Health authorities in Sri Lanka have confirmed the detection of two recently identified Omicron subvariants—designated LF.7 and XFG—within the country, aligning with wider regional patterns of Covid-19 evolution observed across parts of Asia.

The discovery was made following laboratory analysis carried out by the Medical Research Institute (MRI) in Colombo. The samples, collected from multiple medical facilities across the island, underwent genomic sequencing which confirmed the presence of the emerging sublineages.

Dr Jude Jayamaha, a senior virology expert attached to the Ministry of Health and the MRI, stated that whilst these subvariants have indeed entered local circulation, there is currently no indication of heightened risk that would warrant public panic.

According to Dr Jayamaha, viral mutations remain a natural and anticipated aspect of SARS-CoV-2’s ongoing adaptation process.

Although no surge in hospitalisations or severe illness has been linked to these new subvariants, public health professionals continue to monitor the situation closely.

Enhanced genomic surveillance and routine viral sequencing remain core components of the government’s response, aimed at rapidly identifying any significant shifts in transmissibility or disease severity.

In light of the findings, officials are urging the public—particularly vulnerable groups such as the elderly, expectant mothers, and individuals with underlying health conditions—to adhere to basic protective measures.

These include the wearing of face masks in crowded settings, maintaining good hygiene practices, and avoiding poorly ventilated indoor spaces whenever possible.

Meanwhile, in a related development, medical investigations have confirmed that a one-and-a-half-month-old infant who died recently at Galle National Hospital had contracted the Covid-19 virus. The diagnosis was confirmed following post-mortem testing by the MRI. However, hospital authorities clarified that the infection was not attributed to either of the newly identified subvariants.

Whilst this isolated case has prompted renewed calls for attentiveness to respiratory symptoms in children and infants, health officials stress that overall case numbers remain manageable at this time.

The Ministry of Health has reiterated that it stands ready to escalate response measures should the epidemiological situation change.