By: Staff Writer

August 06, Colombo (LNW): U.S. Ambassador to Sri Lanka Julie Chung has emphasized the need for structural reforms, market diversification, and stronger institutions as critical pillars for Sri Lanka’s long-term economic stability. Speaking at the Annual General Meeting of the Sri Lanka–USA Business Council in Colombo, she praised the resilience of Sri Lankan businesses while outlining new opportunities for deeper economic cooperation with the United States.

Amid growing commercial ties between the two countries, Ambassador Chung stressed that “economic security and national security are two sides of the same coin,” underscoring the importance of secure supply chains, ports, and cybersecurity in both nations. She reaffirmed America’s continued commitment to being a “steadfast partner” in Sri Lanka’s journey to economic recovery and growth.

Referring to recent engagements by the Council, Chung noted discussions on capital markets and new U.S. import tariffs have been timely and critical. While acknowledging concerns over ongoing tariff negotiations, she reiterated that regardless of the outcome, Sri Lanka must pursue urgent reforms, especially in state-owned enterprise efficiency, non-tariff barrier reduction, and human capital investment.

Chung called on Sri Lankan businesses to explore the vast U.S. market, describing it as “transparent, open, and full of opportunity.” She cited America’s robust legal system, skilled workforce, unmatched research and innovation capacity, and a $25 trillion economy that accounts for nearly a third of global household spending.

Highlighting upcoming prospects, she invited Sri Lankan firms to participate in the 2026 SelectUSA Investment Summit in Washington D.C., a premier event promoting foreign direct investment into the U.S. The 2025 summit drew over 5,500 participants, including Sri Lankan investors, offering direct access to U.S. business partners, policymakers, and investment opportunities.

Chung also pointed to a recent legal victory where U.S. brand Under Armour secured an interim injunction from the Colombo Commercial High Court against a local retailer selling counterfeit goods. She hailed this as a significant step in building confidence in Sri Lanka’s rule of law and intellectual property protection.

Addressing the business community directly, Chung urged leaders to advocate for transparency, accountability, and a stable regulatory framework. “Sri Lanka’s location on vital trade routes in one of the world’s fastest-growing regions gives it an edge,” she said, “but tapping into that potential requires bold reforms and policy stability.”

Concluding her speech, Ambassador Chung reflected on her four-year tenure in Sri Lanka, expressing optimism for the future of bilateral commercial relations. “With bold leadership and a commitment to reform, Sri Lanka can unlock its true potential—and the United States stands ready to be your partner every step of the way.”

By: Staff Writer

August 06, Colombo (LNW): Sri Lanka’s textile and fabric manufacturing sector is facing subdued global demand and declining production volumes, even as some leading players like Teejay Lanka PLC continue to maintain profitability through strategic cost management and international partnerships.

The overall industry, which plays a crucial role in Sri Lanka’s industrial export portfolio, has seen a slowdown in recent quarters due to weakening global retail markets, inventory corrections by buyers, and inflationary pressures in key export destinations such as the United States and Europe.

According to the Export Development Board (EDB), Sri Lanka’s textile and garment exports generated USD 5.1 billion in 2023, with woven fabrics and knitwear contributing significantly. However, a notable deceleration in orders has been observed during the first half of 2025.

Teejay Lanka PLC, a key player with operations in Sri Lanka and India, reported mixed performance in its June 2025 quarter despite these global headwinds. The group posted a 2% year-on-year increase in revenue, reaching Rs. 15.78 billion, driven largely by financial gains and strategic cost reductions rather than production volume growth.

According to its interim financials, the company’s cost of sales declined by 3% to Rs. 14.5 billion, helping offset some of the impact from lower production volumes. Gross profits still fell by 3% to Rs. 1.25 billion, reflecting weaker output across the industry.

Group administrative expenses surged 37% to Rs. 957 million, though a financial gain of Rs. 250 million—up from Rs. 114 million a year ago—bolstered bottom-line performance. Finance costs fell 21% to Rs. 86 million, aiding a 33% rise in pre-tax profits to Rs. 364 million. Net profits rose 31% to Rs. 207 million.



However, the company’s standalone Sri Lankan operations fared less favorably. Revenues dropped 15% to Rs. 8 billion, cost of sales mirrored this decline to Rs. 7.3 billion, and gross profits shrank by 10%. This reflects a broader trend across the domestic manufacturing sector, which is struggling with underutilized capacity and shifting order patterns.

Looking forward, Teejay remains cautiously optimistic, citing upcoming changes to the U.S. Harmonized Tariff Schedule (HTS) as a potential disruptor or opportunity for Sri Lankan exports. The company emphasized that its diversified global presence and strong links with international brands continue to provide it with agility in navigating the evolving trade landscape.

As the sector awaits a rebound in global demand, strategic agility, technological upgrades, and market diversification are expected to be critical for Sri Lanka’s textile and fabric industry to remain competitive.

By: Staff Writer

August 06, Colombo (LNW): The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has issued a final warning to all Executive Grade State officials who have failed to submit their annual declarations of assets and liabilities for 2025.

According to the Commission, legal action under the Anti-Corruption Act No. 9 of 2023 will be taken against officials who do not meet the final deadline of 31 August 2025.

The declarations, which should have been filed by 31 March 2025 and submitted to institutional heads by 30 June, are now subject to daily financial penalties for non-compliance.

A grace period that allowed late submissions up to 31 August will now result in mounting fines, and CIABOC emphasized that failure to comply by 1 September will be considered a punishable offence.

Under the new law, daily fines for delayed submissions are directly deducted from salaries. From 1 to 31 July, the penalty is one-thirtieth of an official’s gross monthly salary. From 1 to 31 August, the fine increases to one-thirtieth of the average salary over the past six months.

Beyond financial penalties, the Commission has also warned of criminal consequences for total non-compliance. According to Section 90(5) of the Act, failure to file declarations by 1 September is an offence that may result in a fine equivalent to 12 months’ salary, up to one year in prison, or both—if convicted following investigation.

The Anti-Corruption Act No. 9 of 2023, which came into force on 15 September 2023, significantly broadens the scope of officials required to file declarations. This now includes the President, Provincial Governors, officers of public corporations and councils, heads of diplomatic missions, military staff officers, and even office bearers of national sports bodies and private companies with more than 25% state ownership.

Private staff of MPs, local council members, and media company management also fall under the mandate. Though no official total has been publicly disclosed, sources estimate the number of eligible individuals to be between 25,000 and 30,000.

Despite the widening net, CIABOC says compliance has improved significantly this year, helped by the launch of a digital declaration system. A downloadable format has been introduced for 2025 filings, and a full-scale e-declaration platform is in development with assistance from the United Nations Development Programme (UNDP) and the Asian Development Bank (ADB).

The Commission urges all delinquent officials to submit their declarations immediately to avoid fines and prosecution. Heads of institutions are required to accept late submissions and report any refusals to CIABOC.

With Sri Lanka pushing for greater accountability, this marks a crucial step in the country’s anti-corruption campaign under its latest legal framework.

By: Staff Writer

August 06, Colombo (LNW): Sri Lanka recorded 200,244 tourist arrivals in July 2025, marking a 7% year-on-year (YoY) growth and the highest monthly arrivals since 2018. The surge, particularly evident in the final week of the month, reflects a renewed global interest in the island, following its recent ranking as the No. 1 island in the world for 2025 by travel platform Big 7 Travel.

However, despite this encouraging growth, the country fell short of its ambitious monthly target of 277,195 visitors—missing the mark by nearly 77,000 tourists. The July figure also lags behind July 2018’s total of 217,829, indicating Sri Lanka is yet to fully recover its pre-crisis tourism momentum.

Arrivals showed steady weekly gains, beginning with 42,233 visitors in the first week, followed by 44,262 in the second, 46,469 in the third, and a strong finish with 67,280 tourists in the final week. The average daily arrival rate stood at 6,459, outperforming last year’s 6,058 daily average for July.

Year-to-date (YTD) arrivals have now surpassed 1.36 million, a 14.2% increase compared to the same period in 2024. Nonetheless, this still trails the 2018 benchmark, which stood at over 1.38 million by end-July—highlighting a 1.4% shortfall.

India continues to lead as Sri Lanka’s largest tourism source market, contributing 37,128 arrivals in July alone and 279,122 for the year so far. Other key contributors for the month included the UK, Netherlands, China, and France. Cumulatively, the UK and Russia follow India in total arrivals this year.

Despite this growth, tourism industry stakeholders have raised concerns about the absence of a coordinated promotional strategy. Although the government has proposed visa-free entry for citizens from 40 countries, no official timeline has been announced. Furthermore, long-promised global marketing and nation branding campaigns remain unlaunched, frustrating private sector efforts to sustain growth.

With Sri Lanka aiming for 3 million tourist arrivals and $5 billion in tourism revenue in 2025, it still needs to attract over 1.36 million visitors—or 54%—before the end of the year. Stakeholders argue that beyond positive global rankings, policy delays and lack of execution pose a greater threat to reaching these targets.