April 03, Colombo (LNW): The Phase II expansion of Bandaranaike International Airport (BIA) has come under scrutiny due to recent allegations of irregularities in the tender process. Questions have arisen about the fairness and transparency of Sri Lanka’s public procurement system after an unexpected extension was granted for bid submissions, reportedly benefiting a single bidder. This decision has sparked widespread criticism, raising doubts about the integrity of the tendering process.
The BIA expansion is a crucial project aimed at enhancing Sri Lanka’s aviation infrastructure. With the Japan International Cooperation Agency (JICA) investing Rs. 170 billion, the project is set to increase the airport’s annual passenger capacity to 16 million, addressing growing air traffic congestion. Initially launched in 2020 with an estimated cost of Rs. 145 billion, progress was hindered by Sri Lanka’s 2022 economic crisis, leaving only six percent of Phase II incomplete.
As per the original plan, the tender process was to follow the Japanese Official Development Assistance (ODA) guidelines, inviting international bidders. The deadline for bid submission was initially set for March 18, 2025.
However, a last-minute extension was granted upon the request of a single bidder, prompting protests from leading construction firms. Critics argue that this decision disrupts fair competition and compromises the procurement system’s credibility.
Several key concerns have been raised regarding this controversial extension:
Unfair Advantage – The deadline shift benefits a particular bidder, placing others at a disadvantage. Many companies had already allocated resources to meet the original timeline, only to be undermined by this sudden change.
Impact on Foreign Investment – Such discrepancies in the tendering process could tarnish Sri Lanka’s reputation among international investors. A lack of transparency may deter future foreign participation in large-scale infrastructure projects.
Economic and Corruption Risks – Manipulating bid processes may lead to inflated costs and compromised quality. Favoritism in awarding contracts has historically resulted in project delays, cost overruns, and undue financial strain on taxpayers.
Damage to National Interests – A lack of transparency in national projects erodes public trust in governance. This could lead to economic and political instability, affecting Sri Lanka’s global standing.
Precedent for Future Projects – Allowing such extensions could set a negative precedent, signaling that procurement processes can be altered to suit specific interests, thereby undermining fair competition in future tenders.
In response, there have been increasing calls for the government to reinstate the original bid deadline and provide clarity on the extension’s rationale. Citizens and industry leaders are urging authorities to uphold transparency and prevent corruption in public projects.
This issue poses a significant governance challenge for the administration, testing its commitment to accountability. Failure to address these concerns could severely impact Sri Lanka’s development prospects and credibility on the global stage.
April 03, Colombo (LNW): The Department of Examinations has officially announced that the Grade Five Scholarship Examination for 2025 will be held on August 10.
Applications for eligible students will be accepted from April 04 until midnight on April 30.
Commissioner General of Examinations Amith Jayasundara stated that applications must be submitted online and will only be accepted from students currently enrolled in government or government-approved private schools.
According to the department, to qualify for scholarship funds, candidates must be under the age of 11 as of 30 January 2026.
Parents and guardians are encouraged to ensure their children meet the age and eligibility criteria before submitting applications.
The Department of Examinations has also provided detailed guidelines for students with special needs, which can be accessed through their official website. Further information regarding the examination process, eligibility, and special accommodations can be found at https://onlineexams.gov.lk/eic.
For any queries, applicants can reach out through the following contact details:
April 03, Colombo (LNW): Suspended Inspector General of Police (IGP) Deshabandu Tennakoon has been ordered to remain in remand custody until April 10 following a ruling by the Matara Magistrate’s Court.
His continued detention is linked to the high-profile shooting incident that took place near the W15 Hotel in Weligama’s Pelena area on December 31, 2023.
Tennakoon had been evading arrest for nearly three weeks before surrendering to the court on 19 March by filing a motion. His arrest was initially ordered alongside eight other police officers, including former members of the Colombo Crimes Division (CCD), all of whom have been named as suspects in the case.
The Criminal Investigation Department (CID) was subsequently tasked with apprehending and presenting the individuals before the court.
The legal battle intensified when Tennakoon attempted to challenge the arrest order through a writ petition filed at the Court of Appeal. However, on March 17, the court dismissed his request for an interim injunction, paving the way for law enforcement to take him into custody.
The Court of Appeal further directed the CID to expedite his arrest and ensure his court appearance.
Meanwhile, political pressure on Tennakoon is mounting, as a motion submitted by a group of MPs seeking his removal from the position of IGP is set to be debated in Parliament on April 08.
Indian High Commissioner to Sri Lanka Santosh Jha is a seasoned diplomat with experience in several key postings. In this interview, he discusses the significance of PM Narendra Modi’s visit to Sri Lanka and the opportunities and challenges in the India-Sri Lanka partnership. He highlights the importance of fostering a business-friendly, stable investment climate to attract Indian investment and notes that the visit is expected to deliver key outcomes that will elevate the partnership to new heights.
Q: Given the current regional challenges, what is the trajectory of India-Sri Lanka relations?
India-Sri Lanka relations have never been stronger. Rooted in shared aspirations for prosperity, development, and security, our partnership is expanding into new and diverse areas. Sri Lanka remains an integral part of India’s Neighborhood-First Policy and the MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) approach. As a reflection of this commitment, India extended an unconditional financial assistance package of over $ 4 billion—the largest ever deployed in support of any country. With Sri Lanka now on the path to economic recovery, it has a great opportunity to integrate with India’s fast-growing economy, which has doubled in size from $ 2.1 trillion in 2015 to $ 4.3 trillion in 2025. As the fifth-largest economy, soon to be the third-largest, India remains a key partner in Sri Lanka’s resurgence.
Indian High Commissioner to Sri Lanka Santosh Jha
Q: India’s support for Sri Lanka’s economic stabilisation is now widely acknowledged by the public. What Sri Lanka needs now is growth. Could you share insights on the next phase of economic support?
India is Sri Lanka’s largest trade partner, a leading investor, and the biggest source of tourism revenue. The India-Sri Lanka Free Trade Agreement (FTA) has significantly benefited Sri Lanka, with 65% of Sri Lanka’s exports utilising FTA benefits compared to just 5% for India. Sri Lanka has also maintained a trade surplus in FTA-covered goods. However, both nations recognise the need to upgrade the FTA by removing existing impediments, eliminating non-tariff barriers, and enabling greater trade facilitation. India’s development partnership in Sri Lanka includes railway modernisation and port upgrades such as the Kankesanthurai Port, infrastructure projects like housing, schools, and hospitals, renewable energy initiatives such as solar electrification of religious places and hybrid energy projects in Jaffna, and support for agriculture, fisheries, and cold storage facilities. To date, India has extended financial assistance exceeding $ 7 billion, including $ 800 million in grant aid and the conversion of $ 100 million in loans into grants. These projects span all 25 districts in Sri Lanka.
Q: How can India and Sri Lanka further strengthen business and investment flows?
India is already a leading foreign investor in Sri Lanka, and this trend is expected to grow. Major Indian investments include the West Container Terminal at Colombo Port, the ITC Hotel, renewable energy projects, and CEAT’s $ 225 million acquisition of two Michelin plants. Bilateral infrastructure and energy projects are investment-driven, and India continues to encourage private sector investments. A business delegation from the Confederation of Indian Industry (CII) is expected later this year. During President Disanayake’s visit to India in December 2024, he engaged with Indian industry leaders, reinforcing the importance of Sri Lanka’s proximity to India’s economic growth. To capitalise on this, Sri Lanka must ensure a business-friendly, stable investment climate.
Q: Another critical area of concern is maritime security and regional challenges. How are India and Sri Lanka addressing these issues?
Both nations have reaffirmed their shared maritime security interests in the Indian Ocean Region and are committed to strengthening regional security through the Colombo Security Conclave, BIMSTEC, and IORA. This includes joint training, military exercises, and defence collaboration such as the deployment of a Dornier aircraft for maritime surveillance and the establishment of a Maritime Rescue and Coordination Centre in Sri Lanka. Sri Lanka has also made it clear that it will not allow its territory to be used in ways that threaten India’s security or regional stability.
Q: What steps are being taken to strengthen cultural and educational ties between India and Sri Lanka?
The people-to-people ties between India and Sri Lanka span millennia. Recent initiatives to strengthen cultural and educational connections include recognising Pali as a classical language in India, with Sri Lanka being the first to welcome the announcement, translating Jataka Tales into Sinhala and reprinting the Namamala Pali grammar book, and promoting Buddhist circuits and the Ramayana trail, which attract visitors from both countries. Education and youth engagement remain key priorities, with nearly 800 scholarships awarded annually to Sri Lankan students, including 200 new scholarships for students of Jaffna and Eastern Universities, along with expanded skills training and development opportunities for Sri Lankans in Indian institutions.
Q: How do you see the future of the India-Sri Lanka partnership amid the influence of other global players?
The India-Sri Lanka partnership is built on people-centric cooperation, with future collaboration focusing on digital transformation and IT-enabled services, renewable energy and sustainable infrastructure, human resource and skill development, and trade and investment growth to strengthen both economies. These areas will define the partnership’s next decade, ensuring that both nations grow together and remain future-ready.
Q: Lastly, what is the broader significance of Indian PM Narendra Modi’s visit to Sri Lanka?
Indian PM Narendra Modi’s upcoming visit follows President Disanayake’s first official visit to India in December 2024. This visit holds special significance as PM Modi will be the first foreign leader to visit Sri Lanka under the new Government—underscoring the unique and strategic nature of bilateral relations. This will be PM Modi’s fourth visit to Sri Lanka in the last decade, reflecting India’s commitment to supporting Sri Lanka’s economic recovery, deepening cooperation on shared growth and development, and strengthening ties in areas such as investment, connectivity, digitisation, energy, security, and defence. The visit is expected to yield key outcomes that will elevate the India-Sri Lanka partnership to new heights.
April 03, Colombo (LNW): The Criminal Investigation Department (CID) has apprehended three individuals, including two women, for their involvement in a significant financial fraud case at the Sri Lanka Ayurvedic Drugs Corporation.
The suspects are accused of embezzling over Rs. 27 million by manipulating the corporation’s computer software system and issuing altered cheques.
The case was brought to the CID’s attention on March 20, 2025, when the General Manager of the Sri Lanka Ayurvedic Drugs Corporation, located on Old Kottawa Road in Nawinna, Maharagama, filed a formal complaint. The complaint revealed that a total sum of LKR 27,031,024.15 was illegally obtained through fraudulent alterations in the corporation’s software system, which enabled the issuance of tampered cheques.
Following a thorough investigation, CID officers arrested the main suspect, a 35-year-old man from Kelaniya, along with two female accomplices, aged 25 and 32, also residents of Kelaniya. The arrests took place on April 1, 2025.
However,the suspects were presented before the Nugegoda Magistrate’s Court yesterday (April 2) where they were remanded in custody until April 11, 2025. The CID is continuing its investigation to uncover more details about the fraud and to determine whether other individuals are involved in the scheme.
The swift action taken by the CID has been commended, and authorities are urging other institutions to implement stricter security measures to protect against cyber fraud. The investigation remains ongoing as authorities seek to bring all responsible parties to justice.
April 03, Colombo (LNW): Sri Lanka’s currency may experience downward pressure following US President Donald Trump’s recent decision to impose a 44 per cent reciprocal tariff on Sri Lankan imports, according to currency dealers.
The executive order, which Trump characterised as a “discounted reciprocal tax,” aims to counteract what he claims to be an 88% tax burden on American goods entering Sri Lanka.
Trump justified the move as a necessary measure to address trade imbalances. Whilst the decision has sparked concerns within Sri Lanka’s financial sector, local currency dealers suggest the rupee’s immediate depreciation is primarily a reactionary move by certain banks seeking to cover short positions.
“There is currently limited importer demand for US dollars, but uncertainty about future trade relations has created some volatility,” a senior currency dealer noted.
Experts warn that the impact on the rupee could become more pronounced if Sri Lanka fails to negotiate a favourable resolution. Unlike major trading nations such as China and India, the United States maintains a trade surplus with Sri Lanka, meaning a higher tariff could lead to reduced dollar inflows into the country.
This scenario would place further strain on foreign exchange reserves and put the rupee under sustained pressure.
Market analysts are closely monitoring the situation, with many waiting for further clarification from the Trump administration regarding the extent and duration of the tariffs.
In the meantime, financial markets remain on edge as Sri Lanka assesses potential countermeasures to mitigate the economic fallout.
April 03, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has underscored the urgent need to safeguard the Sacred City of Anuradhapura, calling it a heritage site of universal value.
Speaking at an international expert conference co-hosted by UNESCO and the Sri Lankan government, she highlighted the importance of conservation efforts in preserving the island’s rich cultural legacy.
In her address, the Prime Minister reflected on Sri Lanka’s ancient civilisations, particularly the kingdoms of Anuradhapura and Polonnaruwa, which she described as extraordinary testaments to an advanced hydraulic society with refined artistic and architectural traditions.
She also acknowledged UNESCO’s pivotal role in preserving the country’s Cultural Triangle since the 1980s, reinforcing the enduring partnership between Sri Lanka and the organisation.
Drawing on historical transformations, she noted how Anuradhapura had been deeply affected by the civil conflict in the 1990s, reshaping the city’s landscape and cultural dynamics.
Today, the challenge lies in maintaining its sacred essence whilst accommodating the needs of its residents and the influx of tourists. “Anuradhapura is more than a national treasure; it belongs to the world,” she stated, emphasising the city’s significance as a UNESCO World Heritage site.
Recent archaeological findings suggest that Anuradhapura’s origins may date as far back as 900 BCE, highlighting its historical depth. The Prime Minister stressed the role of history and archaeology in fostering cultural understanding and promoting shared heritage, but acknowledged the complexities of balancing conservation with urban development.
Looking ahead, she outlined the government’s vision to develop Anuradhapura, Jaffna, and Kandy as heritage cities, each representing distinct facets of Sri Lankan identity.
She called for sustained global collaboration, expertise, and financial support to ensure that conservation strategies remain adaptable and resilient.
In the face of climate change, economic disparities, and shifting geopolitical landscapes, she reaffirmed Sri Lanka’s commitment to working alongside UNESCO to implement innovative yet tradition-conscious policies.
“This is not just about Sri Lanka’s past; it is about securing the future of world heritage,” she concluded.
April 03, Colombo (LNW): The government is taking steps to amend the Electricity Act passed in 2024, marking a departure from the previous administration’s IMF-backed energy sector reforms.
The move reflects a shift in policy under the leadership of President Anura Kumara Dissanayake, who has been critical of the economic restructuring measures tied to the country’s debt recovery programme.
The International Monetary Fund (IMF)-supported reform framework was designed to stabilise Sri Lanka’s economy, ensure debt sustainability, and modernise the energy sector.
One of its key components was the gradual privatisation of the state-run Ceylon Electricity Board (CEB) to improve efficiency and financial viability.
However, the new administration has expressed reservations about these plans, leading to a reassessment of the legal framework governing the electricity sector.
In response, the Ministry of Power has formed a specialist committee, subject to Cabinet approval, to review the existing Electricity Act and recommend amendments.
The committee has sought input from a broad spectrum of stakeholders, including industry experts, power sector representatives, and development agencies funding energy projects, according to official documents.
A total of 59 stakeholders have submitted written proposals, with additional consultations being held through knowledge-sharing sessions and discussions with those advocating for restructuring.
Following a thorough review, the committee has presented its final report outlining proposed changes to the legislation. The Cabinet of Ministers has subsequently approved a resolution to draft a bill based on these recommendations.
The anticipated amendments are expected to influence the restructuring of the CEB, affecting its role in power generation, transmission, and distribution.
Whilst the previous government’s reforms aimed at increasing transparency, efficiency, and private sector involvement, the Dissanayake administration appears to be prioritising a different approach, potentially curbing or modifying privatisation efforts.
Sri Lanka remains committed to broader state enterprise reforms under its IMF agreement, but the extent to which the revised Electricity Act will align with these commitments remains to be seen.
April 03, Colombo (LNW): Sri Lanka’s apparel sector suffered a sharp decline in stock market trading following the United States’ decision to impose a 44 per cent reciprocal tariff on imports.
The apparel industry, which is the country’s largest export sector, relies heavily on the US market, making the tariff announcement a significant setback for local manufacturers and investors, according to global economic news outlet Economy Next.
Stockbrokers told Economy Next that investor sentiment turned negative immediately after US President Donald Trump’s announcement on Wednesday. By mid-day trading on Thursday, shares of major apparel companies had dropped noticeably, reflecting concerns over the potential impact on export revenue.
Amongst the worst-hit was Hela Apparel Holdings, which fell by 8.11 per cent to Rs. 3.40. Hayleys Fabric also saw a substantial decline of 11.46 per cent, trading at Rs. 42.50, whilst Hayleys Fibre dropped 5.15 per cent to Rs. 46.00. Teejay Lanka, another key player in the industry, saw its stock price fall by 9.06 per cent to Rs. 46.20.
The United States remains Sri Lanka’s largest apparel export destination, generating $1.92 billion in 2024, according to the Export Development Board. The newly announced tariff applies to all countries exporting to the US, raising concerns over the competitiveness of Sri Lankan apparel in global markets.
The broader Colombo Stock Exchange also reflected the impact, with the benchmark index down by 2.06 per cent, shedding 329.91 points to settle at 15,677.53 by mid-day trading on Thursday.
Other exporters outside the apparel sector also experienced losses, with Haycarb falling by 5.31 per cent to Rs. 78.50 and Dipped Products dropping 7.53 per cent to Rs. 52.80.
Industry analysts warn that if the tariff remains in place for an extended period, Sri Lanka’s export sector may struggle to maintain its foothold in the US market, potentially leading to further economic challenges for the country’s manufacturing sector.
April 03, Colombo (LNW): The Committee on Parliamentary Business has scheduled a resolution for debate in Parliament on April 08, calling for the appointment of a Committee of Inquiry to assess the removal of Inspector General of Police (IGP) Deshabandu Tennakoon from his position.
The decision, made during a meeting chaired by Speaker Dr Jagath Wickramaratne, marks a significant development in the ongoing scrutiny of the country’s top police official.
The resolution, if approved, will pave the way for a formal investigation into Tennakoon’s conduct and determine whether grounds exist for his dismissal, according to the Communications Department of Parliament.
Whilst specific allegations prompting the move have not been detailed, his tenure has been marred by controversy, with critics accusing him of misconduct and political bias.
In addition to the scheduled debate on Tennakoon’s position, Parliament is set to convene on April 08, 09, and 10 to address other legislative matters.
