A ceremony to appreciate the elephants who have taken part in the Kandy Esala Perahera for over forty years was held yesterday (7) at the Sri Dalada Maligawa premises in Kandy prior to the final Randoli Perahera today.
Perahera elephants appreciated
Sri Lanka Records USD 8.4 Billion in Exports in First Half of 2025, Targets USD 18 Billion for Year
Sri Lanka earned USD 8.4 billion in export revenue in the first half of 2025, reflecting a 7% increase compared to the same period last year, Export Development Board (EDB) Chairman Mangala Wijesinghe announced yesterday (7).
Speaking at a press briefing at the Department of Government Information, Wijesinghe stressed the need to maintain this growth momentum to achieve the Government’s annual export target of USD 18 billion. “Our goal for the first six months was a 7% growth rate. For the third and fourth quarters, we aim for 8% to 10%,” he said, warning that failure to meet these targets could make the annual goal difficult to reach.
A new Export Development Plan—based on the National Export Strategy (2018–2022) and incorporating newly targeted sectors—is set to launch by September or October. Developed with industry input, the plan aims to boost exports to USD 36 billion by 2030, increasing the sector’s share of GDP from the current 19% to 25%.
Exports remain Sri Lanka’s largest source of foreign exchange, accounting for over 60% of total inflows, or about USD 1.4 billion monthly. Tourism adds around USD 350 million, while worker remittances make up the rest, bringing total monthly foreign earnings to nearly USD 2.4 billion. Import costs range from USD 1.6 to 1.8 billion, especially after vehicle imports resumed.
Merchandise exports in the first half of 2025 totaled USD 6.5 billion, while services contributed USD 1.8 billion, marking a 16% year-on-year increase. Apparel exports rose by 5%, with strong growth also seen in tea, processed foods, gems and jewellery, electronics, and spices.
The U.S. remained Sri Lanka’s top export destination, importing goods worth USD 1.7 billion—65% of which came from the apparel sector. Recent U.S. tariff changes have strengthened Sri Lanka’s competitive edge over rivals such as India and Vietnam, creating new opportunities to diversify exports.
Wijesinghe also highlighted renewed policy coordination through the revival of the Export Development Council of Ministers—last convened in 1992—chaired by the President. The council’s next review meeting will be held next Tuesday to assess export sector performance and ambassador-led market expansion efforts.
To promote inclusive growth, export development targets have been extended to all districts and Divisional Secretariats, supported by new EDB offices in Kurunegala, Jaffna, Kandy, and Matara.
Govt to Remove Barriers for Return of Specialist Doctors to Strengthen Health Sector
The Government is taking steps to remove all obstacles preventing specialist doctors who left Sri Lanka from returning to serve in the local health sector, Health and Mass Media Minister Dr. Nalinda Jayatissa told Parliament yesterday (7).
Responding to a question from NPP MP Dr. Nishantha Samaraweera, the Minister revealed that Sri Lanka currently has 72 specialist medical services with an approved cadre of 3,181 positions. Of these, 2,042 are filled, while 1,139 vacancies remain. He noted that many doctors who had migrated for overseas employment have already returned, with the Government planning to fill existing vacancies using these returning specialists.
Dr. Jayatissa made an open invitation to all Sri Lankan specialist doctors abroad, stressing their moral duty to contribute to rebuilding the country’s health service, given the significant public investment in their education and training. He assured that the Government will facilitate their return by addressing administrative hurdles, providing schooling for their children near assigned hospitals, and ensuring transport and other necessary facilities.
The Minister highlighted that during the previous administration, a surge in medical migration saw only 40% of those who left returning by September 2024. This figure has now risen to 65–70%. He expressed hope that the remainder will also return, noting past cases where specialists appointed to remote hospitals opted to go abroad again rather than take up their posts.
Final Randoli Maha Perahera Marks Grand Conclusion of Kandy Esala Perahera Tonight
The grand finale of the Kandy Esala Perahera, the final Randoli Maha Perahera, will parade through the streets of Kandy tonight (August 8), starting from the Sri Dalada Maligawa (Temple of the Sacred Tooth Relic) at 6:51 p.m.
The majestic procession will travel northward from the Maligawa, passing along Dalada Veediya, Yatinuwara Veediya, Kande Veediya, and D.S. Senanayake Veediya, before ascending Raja Veediya and returning to the temple. In the early hours of tomorrow (August 9) at 1:18 a.m., the Perahera, along with the four Devale processions of Natha, Vishnu, Kataragama, and Pattini, will ceremonially place the Sacred Relic Casket at the Gedige Viharaya.
At dawn, the four Devale Peraheras will perform the traditional water-cutting ceremony (Diya Kapeema) at Getambe Diya Kapana Thota, before arriving at the Gana Devale Kovil. The Dalada Maligawa Perahera will then depart from Gedige Viharaya at 2:16 p.m., proceeding along D.S. Senanayake Veediya to join the Devale processions near the Kandy Municipal Council junction.
The united Perahera will ascend Raja Veediya, perform three ceremonial circumambulations of the Maligawa Square, and conclude its sacred journey. The official closing ceremony will take place tomorrow at the Kandy President’s House, under the patronage of President Anura Kumara Dissanayake. Following the daytime procession, Diyawadana Nilame Pradeep Nilanga Dela, along with the Basnayake Nilames of the four main Devales and affiliated rural shrines, will deliver the Perahera Sandeshaya — the traditional message marking the successful completion of this year’s festival — to the President, in accordance with centuries-old custom.
Australia Pledges Stronger Economic and Bilateral Ties with Sri Lanka
Australian Governor-General Samantha Joy Mostyn met President Anura Kumara Dissanayake at the Presidential Secretariat yesterday (7) for bilateral talks aimed at strengthening the more than 75-year-old friendship between the two nations.
Governor-General Mostyn affirmed Australia’s readiness to continue supporting Sri Lanka under President Dissanayake’s leadership, with a particular focus on bolstering the economy.
President Dissanayake thanked Australia for its longstanding assistance in economic development, education, defence, tourism, and maritime affairs, noting that Australia has become a key hub for employment, education, and vocational training for Sri Lankans. He added that Sri Lanka has now created a favourable environment for Australian investors and expressed interest in drawing on Australia’s expertise in various sectors.
The Governor-General is in Sri Lanka on a three-day official visit at the invitation of President Dissanayake and will tour several locations, including Australian-supported projects in Bandaragama, Mirissa, and Weligama.
President Highlights Record Export Growth, Rising Tourism and Investments
President Anura Kumara Dissanayake yesterday told Parliament that Sri Lanka’s economy, which had collapsed under previous administrations, has made significant strides under the new Government — with the highest export revenue in history recorded in the first six months of this year.
Speaking during the adjournment debate on the current economic situation, the President said the Government is committed to diversifying export markets to reduce dependence on a handful of countries.
“Around 25% of our exports go to the United States and 23% to the European Union. Any tax changes in these markets have a major impact on Sri Lanka. That is why we are expanding into other high-potential markets,” he said.
According to the President, exports to the African market have increased by 57% and to the Asian market by 26%compared to June last year.
He noted that while no final agreement has yet been reached on tariff rates between Sri Lanka and the United States, negotiations have led to a reduction in the US-imposed tariff to 20%, which he described as a significant milestone.
The President also stressed that the Government will provide infrastructure and facilities for industrialists, but emphasised the importance of proper tax compliance. He revealed that 200 major tax defaulters owe between Rs. 100–150 billion in unpaid taxes, and efforts are underway to encourage payment.
On tourism, he reported a 10% increase in revenue compared to last year, projecting 2025 to be the highest-earning year for the industry.
Foreign Direct Investment (FDI) has also surged, with a 101% increase — reaching US$ 507 million in the first six months of this year compared to US$ 252 million in the same period last year. The Government expects to exceed US$ 1 billion in FDI for 2025. Domestic investment, through the Board of Investment, has grown by 18% year-on-year.
President Dissanayake said that immense sacrifices over the past year have put the economy on a stable and strengthened path, and that the upcoming budget will continue to channel economic benefits to the people.
Dismissing predictions of an economic collapse, the President said:
“Those who constantly dream of an economic collapse should choose another political path. That will not happen under this Government.”
WEATHER FORECAST FOR 08 AUGUST 2025
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.
Sri Lanka’s Tea Exports Face Headwinds amid new US Tariff Changes
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.
Sri Lanka Approves Four Firms for Spice Re-Exports to boost the industry
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.
Online Gambling Lures Sri Lankan Youth into a Growing Web of Risk
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.