Several spells of showers will occur in the Western, Sabaragamuwa and Northern provinces and in Nuwara-Eliya, Kandy, Puttalam, Galle and Matara districts.
Showers or thundershowers may occur at a few places in Uva province and in Batticaloa and Ampara districts after 1.00 p.m.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
By: Staff Writer
August 07, Colombo (LNW): Sri Lanka’s tea industry — long famed for its premium “Ceylon Tea” brand — is bracing for fresh challenges as the United States implements a new tariff structure from August 7, potentially undermining the country’s competitiveness in one of its key export markets.
Under the revised US tariff system, Sri Lankan tea exports will now be subjected to a 20% import duty, erasing the previous zero-duty advantage the country once enjoyed.
While this places Sri Lanka 5% ahead of India, which will now face a steep 25% tariff, it finds itself at a disadvantage compared to key African competitors. Kenya, one of the largest exporters of CTC (Crush, Tear, and Curl) tea, will enjoy a significantly lower 10% tariff, while Malawi faces a 15% rate.
Industry stakeholders, particularly the Tea Exporters Association (TEA), have expressed concern that this 10% tariff gap with Kenya could seriously affect Sri Lanka’s tea bag segment in the US, where Kenyan teas dominate the CTC blends used in popular tea bags
“Kenya is already a major supplier of CTC teas to the US and is now gradually expanding its orthodox tea production — an area Sri Lanka has historically led. With a 10% tariff advantage, Kenya could become a strong competitor in both segments,” the association warned.
Although Sri Lanka remains on par with tea exporters like Vietnam, Taiwan, and Indonesia — with tariffs ranging from 19% to 20% — the impact on Sri Lankan exports is expected to be more pronounced due to the country’s relatively higher price point.
Ceylon tea typically commands a premium in global markets, priced $1–$1.50 higher per kilogram compared to other origins. While this premium has historically been supported by Sri Lanka’s reputation for quality, legacy branding, and origin authenticity, the new tariff regime could amplify cost concerns for importers.
“Under zero-duty conditions, the pricing difference was manageable,” the TEA noted. “But with the 20% duty, Ceylon tea becomes significantly more expensive, forcing buyers to rethink sourcing decisions — especially in the middle-market segment.”
In April, several US orders were temporarily suspended following the initial tariff announcement, although they were later cleared after the US government introduced a temporary 10% baseline rate for 90 days. However, exporters fear this relief is only temporary and that longer-term competitiveness will hinge on other strategic measures.
Looking forward, industry experts stress the need for Sri Lanka to pivot towards value-added exports — including flavored and specialty teas — to differentiate its products beyond raw price considerations. The TEA has urged the government to lift restrictions on the import of ingredients and spices required for value addition, noting that blending with herbs and flavors could open new market segments and offset the impact of higher tariffs.
“Tea producers in Sri Lanka must innovate and embrace product diversification to survive in the evolving trade environment,” the TEA emphasized. “The future of Ceylon Tea in markets like the US will depend less on price, and more on quality, branding, and value-added innovation.”
As the global tea trade landscape shifts, Sri Lanka finds itself at a crossroads. With rising competition from both Africa and Asia, the country’s once-unrivalled tea industry must adapt rapidly — or risk ceding ground in key export markets.
By: Staff Writer
August 07, Colombo (LNW): Sri Lanka is pushing ahead with its strategy to boost foreign exchange earnings by encouraging value addition in its lucrative spice industry, with the government approving four local firms to operate as ‘approved enterprises’ under the spice re-export scheme. This move comes amid a notable surge in spice and essential oil export earnings during the first half of 2025, which rose by 29.64% year-on-year to US$ 208.53 million, according to data released by the Export Development Board (EDB).
The top-performing spices contributing to this increase include cinnamon, pepper, and cloves. Cinnamon exports rose by 25.01%, pepper by 26.86%, and cloves saw an extraordinary growth of 277.67% compared to the same period last year. These figures reflect a growing global demand for Sri Lanka’s high-quality spices and essential oils.
At the weekly Cabinet media briefing held on Tuesday (6 August), Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced that Stay Naturals Ltd., Verger Naturals Ltd., Plant Lipids Lanka Ltd., and HDDES Extracts Ltd. have been granted “approved enterprise” status for the processing and re-export of selected spices in the form of essential oil extracts, oleoresin, and spice residue.
These approvals follow the procedures established under the Import and Export Regulations No. 10 of 2021, and a Cabinet decision made on 18 December 2023. Under this regulatory framework, eligible companies are permitted to import selected spices from abroad, process them using local value addition methods, and re-export the finished products.
Among the spices targeted for value addition and re-export are cinnamon, black pepper, cardamom, nutmeg, mace, clove, and lemongrass. These are typically transformed into high-value derivatives such as essential oils, spice oleoresins, and herbal extracts, which are in high demand in the global food, cosmetics, pharmaceutical, and wellness industries.
To ensure quality and traceability, companies participating in the scheme must enter into supplementary agreements with the Board of Investment (BOI). These agreements include strict commitments on product standards, export volumes, and compliance with traceability protocols.
While the scheme offers promising opportunities for foreign revenue inflows and domestic industrial expansion, industry stakeholders have raised concerns about the time-consuming licensing procedures and lack of transparency regarding eligible spice types. Notably, when asked to disclose the list of selected spices, the Cabinet Spokesman declined to provide details.
Nevertheless, the initiative reflects a broader shift in Sri Lanka’s export strategy—from raw material exports to value-added re-exports—which could position the country as a key player in the global spice extract market.
By: Staff Writer
August 07, Colombo (LNW): Online gambling is fast becoming a major concern in Sri Lanka, with increasing numbers of local youth being drawn into unregulated betting platforms—many linked to international operators and criminal syndicates. With easy access via smartphones and targeted advertising, young Sri Lankans are falling prey to the promise of fast cash amid tough economic conditions and limited job opportunities.
The rise of websites such as 1xBet, FairPlay, Lotus365, and SkyExchange—all of which offer easy access to casino games, sports betting (especially on cricket), and digital slot machines—has made online gambling a normalized yet dangerous habit among Sri Lanka’s tech-savvy younger generation. These platforms, operating with little or no regulation, often use pop-up ads and influencer marketing, sometimes disguised as cricket sponsorships, to attract new users.
Just yesterday (August 5), the growing concern translated into action, as Thalangama Police raided a location in Akuregoda, arresting eleven Indian nationals allegedly involved in online gambling operations. The suspects—eight males and three females aged between 22 and 43—were found using laptops, tablets, and 20 mobile phones to manage gambling activity. They were remanded by the Kaduwela Magistrate’s Court until further investigation.
This is not an isolated case. In 2024, police dismantled two major operations in Hanwella, arresting over 50 foreign nationals, including 30 Chinese, six Thai, and four Indian citizens. The raids uncovered over 500 mobile phones, dozens of laptops, and a range of communication and digital devices allegedly used in cyber scams and financial fraud.
Experts warn that the spread of online gambling poses deeper threats beyond addiction. According to global studies, including from the Center for Strategic and International Studies (CSIS), the Southeast Asian online gambling industry has become a hotbed for transnational crime, money laundering, and digital fraud. Criminal networks exploit the vulnerabilities of addicted users—including public officials, law enforcement personnel, and even military staff—potentially compromising national security.
In Sri Lanka, where cybersecurity laws remain weak and public awareness minimal, these gambling operations are thriving in the shadows. The country is yet to implement robust regulations like those seen in Singapore, Indonesia, or Laos, where governments are cracking down on illegal digital betting. In contrast, Philippines and Cambodia have turned into online gambling hubs, attracting both revenue and controversy.
The Sri Lankan government now faces the urgent task of crafting policy, strengthening cyber regulations, and launching public education campaigns to stem the growing tide of gambling addiction and financial exploitation. Without immediate action, the unchecked rise of online gambling could spiral into a national crisis—particularly for the country’s younger generation, already bearing the brunt of economic hardship.
By: Staff Writer
August 07, Colombo (LNW): Sri Lanka’s fiscal deficit narrowed significantly in the first half of 2025, driven by a strong surge in government revenues and tighter expenditure control, according to the Finance Ministry’s latest Fiscal Review Report.
The report revealed that the budget deficit fell by 32.3% year-on-year to Rs. 405.6 billion during January to July 2025. This marked a notable improvement from the Rs. 598.9 billion recorded during the same period last year, reflecting the Government’s adherence to its economic stabilisation programme under the IMF-backed reform agenda.
A key factor behind this improvement was a 24.7% increase in total revenue—including grants—which reached Rs. 2.3 trillion, compared to Rs. 1.8 trillion a year earlier. Major gains were reported in income and value-added tax (VAT) collections.
Income tax revenue rose by 9.2% to Rs. 489 billion, while VAT receipts jumped by 27.6% to Rs. 876 billion. In total, government revenue collection by mid-year represented 46.9% of the annual target, with the Inland Revenue Department contributing the largest share at 48.2%, followed by Customs at 45.6%.
The re-opening of vehicle imports played a major role in revenue growth. Excise Duty from motor vehicles surged by 335.6% to Rs. 129.1 billion, following the lifting of import restrictions on 1 February. This trend also reflected in VAT on imports, which rose 34.3% to Rs. 354 billion, and Special Commodity Levy collections, which increased by 70.5% to Rs. 77.6 billion.
However, not all Excise categories performed equally. While liquor taxes rose by 9.2% to Rs. 108.2 billion, cigarette-related Excise revenue declined by 17.9% to Rs. 44 billion.
The IMF, in its Fourth EFF Review, cautioned against over-reliance on vehicle import revenues, which accounted for nearly 80% of revenue gains in 2025 so far. The Fund emphasized the need for contingency plans to protect medium-term fiscal sustainability if this revenue stream falters.
Total government expenditure during the period rose by 10.9% to Rs. 2.7 trillion. Recurrent expenditure increased by 13% to Rs. 2.5 trillion, while interest payments alone grew by 10.7% to Rs. 1.2 trillion. In contrast, capital expenditure and net lending dropped by 8.6% to Rs. 224 billion.
Highlighting concerns over under-execution of capital spending, the IMF noted weaknesses in project prioritization and urged the use of its upcoming Public Investment Management Appraisal (PIMA) technical support to improve project planning and delivery.
The mid-year fiscal performance underscores both progress and continued challenges in Sri Lanka’s economic recovery path.
August 07, Colombo (LNW): Addressing Parliament, President Anura Kumara Dissanayake announced that domestic investment levels have seen an impressive 18 per cent growth compared to the previous year, with current economic trends pointing to what could become one of the strongest fiscal years in Sri Lanka’s recent history.
Speaking candidly during the session, the President recalled how the government’s revenue projection of Rs. 4.5 trillion for the 2025 budget had initially been met with scepticism.
Many critics had dismissed the target as overly ambitious, even fantastical. However, he asserted that the government’s commitment to overhauling revenue collection mechanisms is beginning to deliver tangible results.
Central to this turnaround, the President noted, has been a comprehensive reform programme targeting key revenue-generating institutions, including the Inland Revenue Department, Sri Lanka Customs, and the Excise Department.
Efforts to broaden the tax base, crack down on evasion, and modernise outdated administrative practices are now showing early signs of success.
In a pointed yet light-hearted remark to legislators, President Dissanayake revealed that he is in possession of a list identifying 200 of the country’s most significant tax evaders, collectively owing between Rs. 100 and 150 billion to the state. “Don’t worry—none of your faces are on it,” he quipped, eliciting laughter across the chamber.
Further addressing financial accountability, the President disclosed that 50 high-profile loan defaulters, all of whom had obtained substantial loans from state-owned banks, have been summoned for direct discussions.
He underscored that state financial institutions have been granted complete autonomy to pursue legal and financial remedies without political interference, reaffirming his administration’s zero-tolerance stance on corruption.
On the external economic front, President Dissanayake projected that foreign reserves could exceed US$ 7 billion by the end of the year—a figure that, if realised, would mark a substantial recovery from previous lows and strengthen the country’s economic standing on the global stage.
The President’s address painted a cautiously optimistic picture of Sri Lanka’s economic trajectory, suggesting that with continued fiscal discipline, institutional reform, and a commitment to transparency, the country may be turning a corner after years of financial instability.
August 07, Colombo (LNW): Parliament was presented with a landmark piece of legislation aimed at dismantling long-standing privileges granted to former heads of state and retired lawmakers, as Justice Minister Harshana Nanayakkara introduced the Presidents’ Entitlements (Repeal) Bill for its First Reading.
The proposed law seeks to formally annul the Presidents’ Entitlements Act of 1986, a statute that has, for decades, guaranteed a range of publicly funded benefits to former Presidents, their surviving spouses, and retired Members of Parliament.
These benefits have included state-provided residences, monthly stipends, personal staff, transport arrangements, and pension packages.
The initiative marks a significant shift in political tone, reflecting growing public sentiment for transparency and austerity in governance, particularly at a time when the nation continues to navigate pressing economic challenges.
By repealing these entitlements, the government aims to set a precedent for fiscal discipline and reduce perceived excesses in public office.
The legislation was officially published in the Government Gazette on July 31, 2025. However, it was not introduced without procedural scrutiny. MP Dayasiri Jayasekara raised concerns over whether the bill had met the constitutional requirement of a minimum seven-day interval between gazetting and parliamentary introduction—a safeguard designed to ensure public awareness and provide space for legal challenge, as outlined in Article 78 of the Constitution.
“We are not challenging the content of the bill,” Jayasekara noted, “but we must be meticulous in observing the correct legislative process. That is what maintains public trust in Parliament.”
Responding to the query, both Minister Nanayakkara and Leader of the House Bimal Rathnayake assured members that the gazette notice had indeed been issued by or before July 30, thus satisfying all constitutional prerequisites. They dismissed any suggestion of procedural impropriety, affirming that the bill was lawfully placed on the Order Paper.
By: Isuru Parakrama
August 07, Colombo (LNW): In a society steeped in conservative tradition, where silence is often mistaken for virtue, the Sri Lankan teledrama Veeduru Thira (Glass Curtains) has dared to draw the curtain aside—revealing the complex, messy and uncomfortable truths that simmer beneath the surface of seemingly perfect lives.
Aired on the state-run Independent Television Network (ITN), the series marks a historic moment: the first openly gay-themed narrative to grace the screens of national television. More than a drama, Veeduru Thira is a cultural reckoning.
At the heart of this narrative lies a bold confrontation—not with law, not with policy, but with society itself. It takes the traditional Sri Lankan marriage, with its pomp, parental expectations, and reproductive ideals, and slices it open to reveal the rotten core hidden beneath many so-called “honourable unions”.
The character of Sulochana, portrayed as a soft-spoken, dutiful husband, slowly unravels into a symbol of social duplicity—closeted, conflicted, and complicit. His secret relationship with another man, masked under the guise of family honour, turns Chethini’s newlywed life into a carefully choreographed illusion.
Herein lies the brilliance of Veeduru Thira. It does not scream for rights; it simply shows a truth that many dare not whisper. Through Chethini’s story—her confusion, her entrapment, and the gaslighting she endures—the drama forces viewers to confront a deeply buried question: how many marriages in our society are simply façades crafted to serve a legacy of silence?
It is common in Sri Lankan society to disguise shame as culture, to equate exposure with immorality. But these are not values derived from deep-rooted local traditions. They are inherited distortions—tattered remnants of post-colonial ideologies that sought to sanitise and regulate personal identities through imported Victorian morals.
Long before colonial ink was spilled on parchment, Sri Lanka had known fluidity in gender roles, expression, and identity. One only needs to look at the island’s precolonial art, folklore, or indigenous rituals to witness the celebration of diverse sexual and gender realities. What we now call “taboo” was once part of the cultural mosaic.
The tragedy lies in how far we have been pulled from that past. In this modern era, many queer individuals—especially men—feel forced to lead double lives. They marry to pacify family expectations, to secure inheritance, to blend in. But Veeduru Thira thrusts it into the open: women like Chethini become collateral damage in the secret war waged by internalised shame. The drama’s portrayal of Sulochana and Sachithra’s clandestine affair is not just about infidelity—it is about privilege, cowardice, and the cost of pretending.
Some critics have been quick to dismiss the series as provocative or inappropriate. But beneath the glossy surface of its script lies an uncomfortable, necessary truth: Veeduru Thira is not trying to be liked, it does not cry for LGBTQIA+ rights. The teledrama simply wants you to exercise the most important aspect of people’s relations—listen.
And once you see through the glass, you cannot unsee.
August 07, Colombo (LNW): A revised import tariff of 20 per cent on goods exported from Sri Lanka to the United States has officially come into force today (07), following a protracted series of diplomatic negotiations aimed at softening previously imposed trade restrictions.
The development marks a partial victory for Sri Lankan trade officials, who have spent several months engaged in talks with representatives from the Office of the United States Trade Representative (USTR), after initial measures sparked alarm within the country’s export community.
The original tariff—set at a steep 44 per cent—was introduced on April 02 through a high-profile policy declaration made by former U.S. President Donald Trump at the White House. The move triggered immediate concern among Sri Lankan exporters, particularly those in sectors such as apparel, rubber, ceramics, and agricultural produce, which rely heavily on the U.S. market.
Reacting swiftly, the Sri Lankan government launched a diplomatic and economic appeal to Washington, citing the potential impact on bilateral trade relations and on livelihoods dependent on the island’s export industries. A sequence of formal meetings, technical submissions, and trade discussions ensued, during which Sri Lanka requested a reassessment of the punitive tariff.
The initial outcome of these efforts saw the rate reduced to 30 per cent, offering modest relief. However, continued diplomatic pressure and targeted advocacy have now resulted in the U.S. agreeing to a further reduction, bringing the tariff down to 20 per cent.
In a statement issued by the Ministry of Finance, officials noted that while the revised figure does not fully restore pre-April trade conditions, it represents a significant step forward in re-establishing fairer access to one of Sri Lanka’s most critical export markets. Authorities also hinted that talks are ongoing and that further revisions may be pursued through future bilateral engagements.
Exporters, while cautiously optimistic, have expressed the need for the government to pursue long-term trade solutions, including diversification of export destinations and enhanced domestic value addition, to reduce reliance on any single market and improve resilience against policy shifts abroad.
August 07, Colombo (LNW): President Anura Kumara Dissanayake has called for an urgent revision of Sri Lanka’s disaster management legislation to better equip the country to face modern challenges, including the escalating risks brought about by climate change.
The directive was issued during the 14th meeting of the National Council for Disaster Management, which took place on 6 August at the Presidential Secretariat—marking the council’s first gathering in over seven years.
Originally established under the Disaster Management Act No. 13 of 2005, the council was created in the aftermath of the catastrophic 2004 tsunami to provide a coordinated national approach to disaster preparedness and response.
However, in light of evolving threats and increasingly complex emergencies, the President has deemed the current legal framework outdated and insufficient.
During the session, national disaster preparedness strategies and the latest iteration of the National Emergency Operations Plan were formally presented and endorsed. The discussion extended beyond procedural matters, focusing heavily on systemic improvements needed to ensure faster, more cohesive responses to both natural and man-made disasters.
A central theme of the meeting was the pressing necessity for a streamlined operational mechanism, with better coordination among agencies and a more agile response structure. The President stressed the importance of moving away from fragmented interventions and toward a unified, centralised command model for emergency management.
Citing financial bottlenecks as a significant barrier to effective disaster response, President Dissanayake instructed relevant authorities to reassess the allocation of resources. He called for the immediate release of funds to revive stalled mitigation projects and proposed revisions to the financial regulations governing relief and compensation.
One of the major outcomes of the meeting was the approval of a proposal to establish a permanent Disaster Management Fund. This dedicated financial reserve is expected to improve the country’s ability to respond swiftly to emergencies and invest in long-term resilience-building efforts.
In addition, the President ordered a comprehensive review of high-risk residential zones, directing officials to accelerate the identification of vulnerable communities and implement relocation plans where necessary to safeguard lives and property. He also proposed a reassessment of the current compensation scheme for disaster-affected families, recommending an increase in the payout amounts to better reflect the real cost of loss and recovery.
Council members emphasised the growing strain that erratic weather patterns and rising sea levels are placing on infrastructure and communities. There was broad consensus that the Disaster Management Act must be modernised not only to accommodate new technological capabilities, but also to reflect the wider risks posed by a changing global climate.