March 31, Colombo (LNW): Sri Lanka’s construction industry maintained its upward trajectory in February, with most businesses reporting an increase in activity, according to the Central Bank.
The sector’s Purchasing Managers’ Index (PMI), a key indicator of construction performance, rose to 55.6 in February 2025, reflecting further expansion from January’s reading of 52.9.
A PMI value above 50 signals growth in the sector, and February’s figures indicate that construction activity has been on a steady rise.
However, while the industry continues to expand, many firms stressed the importance of launching larger-scale infrastructure projects to sustain long-term momentum.
The increase in new orders during February was primarily driven by government contracts for the rehabilitation of roads and irrigation networks.
Additionally, indices measuring the quantity of materials purchased and the efficiency of supplier deliveries showed further improvements, suggesting an overall boost in construction-related operations.
Despite this growth, employment levels in the sector continued to contract, with companies remaining cautious about hiring amid economic uncertainties.
Industry experts believe that stronger government participation in construction projects could help stabilise employment rates in the sector.
Looking ahead, construction firms remain optimistic about the coming months, anticipating continued government investment and policy support to sustain growth and drive the industry forward.
March 31, Colombo (LNW): Opposition Leader Sajith Premadasa has extended his heartfelt Eid-ul-Fitr wishes to the Muslim community, acknowledging the deep spiritual and cultural significance of Ramadan.
In his message, he highlighted the importance of this sacred month, which culminates in the joyous festivities of Eid after nearly a month of fasting and devotion.
Premadasa underscored Ramadan as a period of profound faith, self-discipline, and perseverance, during which millions around the world engage in daily fasting for approximately 14 hours.
He noted that beyond its religious observance, Ramadan fosters essential values such as generosity, compassion, and equality—principles that are vital for building a stronger, more inclusive society.
Reflecting on Sri Lanka’s current economic and social challenges, the Opposition Leader expressed his belief that the lessons of Ramadan offer guidance in overcoming adversity.
He emphasised the need for unity, urging communities to work together to foster national stability and progress. By embracing the spirit of selflessness and collective responsibility, he said, the nation could strive towards a future of shared prosperity.
Concluding his message, Premadasa extended his best wishes to all Sri Lankan Muslims and the global Islamic community, hoping that Eid-ul-Fitr would bring peace, harmony, and renewed hope for a brighter future.
March 31, Colombo (LNW): After a hiatus of 47 years, a direct flight service between Tiruchirappalli in Tamil Nadu and Jaffna in northern Sri Lanka was officially launched yesterday (30), marking a significant milestone in regional connectivity.
Flights to and from Jaffna’s Palaly International Airport had been suspended for decades due to the civil conflict. However, in 2019, the airport resumed operations, initially facilitating passenger flights between Chennai and Jaffna.
With the latest expansion, efforts to establish air links with additional Tamil Nadu cities have come to fruition, with Tiruchirappalli now directly connected to Jaffna.
The newly launched service, operated by IndiGo Airlines, departs from Tiruchirappalli at 1:25 PM and lands in Jaffna at 2:25 PM. The return flight leaves Jaffna at 3:05 PM, arriving back in Tiruchirappalli at 4:05 PM. Ticket fares have been set between INR 5,900 and INR 6,400 for a one-way journey.
The inaugural flight saw 27 passengers arriving at Palaly Airport at 2:02 PM, while 36 travellers boarded the return flight to Tiruchirappalli at approximately 3:00 PM. The occasion was marked by a celebratory cake-cutting ceremony, attended by a delegation led by Indian Deputy Consul General Sai Murali.
March 31, Colombo (LNW): Heat Index, the temperature felt on human body is likely to increase up to ‘Caution Level’ at some places in Northern, North-central, Western, North-western, Sabaragamuwa, and Southern provinces and in Trincomalee, and Batticaloa districts, the Natural Hazards Early Warning Centre of the Department of Meteorology said in a statement affecting today (31).
The public, therefore, is urged to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, and wear lightweight and white or light-coloured clothing.
March 31, Colombo (LNW): President Anur Kumara Dissanayake has emphasised that Eid-ul-Fitr is more than a religious festival, serving as a unifying occasion that fosters compassion, selflessness, and solidarity among all communities.
In his Eid-ul-Fitr message on Monday (31), the President highlighted that as Sri Lanka undergoes significant social, economic, and political changes, the principles of Islam offer valuable lessons in shaping a society built on freedom, equality, and human dignity.
He underscored that these values are crucial in the nation’s collective journey towards justice and harmony.
Addressing the broader political landscape, President Dissanayake stressed the importance of ethical governance, noting that Sri Lanka must move towards a culture of accountability, free from corruption and the misuse of public resources.
He pointed out that the self-restraint and sacrifice observed during Ramadan serve as a powerful example of discipline and moral responsibility, which should inspire political leadership to prioritise the welfare of the people.
The President extended his warmest wishes to the Muslim community in Sri Lanka and around the world, expressing hope that Eid-ul-Fitr would usher in a period of peace, reconciliation, and renewed prosperity for all.
Full Statement:
Eid-ul-Fitr, celebrated by Muslims worldwide after a month of fasting and upon sighting the new moon, holds great significance in the Islamic religious calendar.
Fasting during Ramadan, one of the five pillars of Islam, embodies the values of sacrifice, self-discipline and simplicity by distancing oneself from worldly desires. This period serves as a reminder of the importance of generosity towards those suffering from hunger and as an opportunity for self-restraint and spiritual growth, which devout Muslims deeply cherish.
As Sri Lanka undergoes various social, economic and political transformations, the teachings of Islam provide an excellent example for building a society rooted in freedom, equality, solidarity and human dignity. I strongly believe that these values serve as guiding principles in our collective journey toward a just and harmonious nation.
Furthermore, as we strive to foster a responsible and ethical political culture, one that values accountability over corruption and the misuse of public resources, the principles of self-restraint and sacrifice emphasized during Ramadan offer an inspiring model. They remind us of the need to cultivate a governance system that is sensitive to the aspirations and well-being of its people.
Eid-ul-Fitr is a celebration that transcends religious boundaries, promoting unity, compassion and selflessness. On this auspicious occasion, I extend my heartfelt wishes to all Sri Lankan and global Muslim communities.
May this Eid-ul-Fitr bring peace, reconciliation and the fulfillment of our shared hopes for a new era of renewal and prosperity.
Eid Mubarak!
Anura Kumara Disanayake President, Democratic Socialist Republic of Sri Lanka 31st March, 2025
March 31, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Southern, and Uva provinces and in Nuwara-Eliya and Ampara districts during the evening or night, the Department of Meteorology said in its daily weather forecast today (31).
A few showers may occur in Hambantota, Ampara and Batticaloa districts in the morning too.
Fairly heavy showers about 50 mm are likely at some places in Southern province and in Rathnapura district.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces and in Galle, Matara and Kurunegala districts during the morning.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers are likely at a few places in the sea areas off the coast extending from Colombo to Pottuvil via Galle and Hambantota.
Winds:
Winds will be variable in direction and wind speed will be (20-30)kmph.
State of Sea:
Sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
March 30, Colombo (LNW): Sri Lanka has presented a strong case for investments in its capital markets, urging global investors to participate in the nation’s economic resurgence. Having navigated through recent crises, the country is now positioning itself as an appealing investment destination with promising opportunities.
At the ‘Invest Sri Lanka’ forum held in Colombo, senior officials from key regulatory institutions underscored why this is the ideal time to enter the market. This was the first domestic event of its kind since 2014, with the inaugural forum taking place in 1998.
The event attracted over 100 international delegates and 400 local participants, offering firsthand insights into Sri Lanka’s economic progress since the 2022 crisis, its current standing, and future prospects.
Colombo Stock Exchange (CSE) Chairman Dilshan Wirasekara opened the forum, highlighting the resilience Sri Lanka has demonstrated over the past few years. He noted that despite political instability, the Easter bombings, the COVID-19 pandemic, and the economic crisis, Sri Lanka has managed a significant turnaround.
He emphasized that the country is now at a pivotal moment, presenting an unprecedented opportunity for investors.
Securities and Exchange Commission (SEC) Chairman Professor Hareendra Dissabandara echoed these sentiments, advocating for a new growth strategy that fosters long-term economic stability through market transformation.
He pointed out that Sri Lanka’s recent economic performance has exceeded expectations, highlighting the need for policy consistency and a robust macroeconomic framework to ensure sustainable growth.
“While past recoveries have lacked longevity, this time is different. We have implemented a sound regulatory and macroeconomic policy framework with solid foundations,” he remarked.
Central Bank Governor Dr. Nandalal Weerasinghe reinforced the significance of predictability and price stability, which were previously absent but are now firmly established. Reflecting on the economic crisis, he acknowledged the difficulty of the journey but expressed confidence in the country’s newfound stability.
“We have undergone a tough cycle but have successfully restored stability. The lessons learned will guide us in maintaining a strong and secure financial environment,” Dr. Weerasinghe assured.
The Invest Sri Lanka forum also facilitated regional collaboration by bringing together representatives from Pakistan, Bangladesh, the Maldives, and Nepal. A Memorandum of Understanding (MoU) was signed among the five markets, signifying a collective commitment to enhancing capital market growth and deepening cooperation.
While recognizing India as the dominant regional market, the CSE emphasized that these frontier markets have the potential to collaborate and leverage their strengths to drive mutual growth. With a stable economic foundation and strategic partnerships, Sri Lanka is poised to become an attractive investment hub in the region.
March 30, Colombo (LNW): Sri Lanka and Thailand successfully concluded the 6th round of bilateral political consultations on March 25 at the Ministry of Foreign Affairs in Bangkok. The meeting was co-chaired by Sri Lanka’s Secretary of Foreign Affairs, Foreign Employment, and Tourism, Aruni Ranaraja, alongside Thailand’s Permanent Secretary for Foreign Affairs, Eksiri Pintaruchi.
Both delegations shared updates on key national developments, with Sri Lanka highlighting the “Clean Sri Lanka” initiative introduced by the President, along with advancements in digital infrastructure and the digital economy. The meeting provided an important platform to review existing bilateral relations, explore new areas of cooperation, and identify ways to strengthen ties.
Discussions covered a wide range of areas, including political, economic, defense, cultural, and tourism-related collaborations. Secretary Ranaraja emphasized Sri Lanka’s favorable environment for Thai investments, underscoring the increasing economic partnership between the two nations.
Both sides explored opportunities to enhance trade and investment, focusing on the Sri Lanka–Thailand Free Trade Agreement (FTA) and priority sectors such as infrastructure, agro-industry, fisheries, gems and jewelry, tourism, small and medium enterprises (SMEs), financial services, packaging, and ICT.
Regional and global issues of mutual interest were also addressed, with both nations reaffirming their commitment to collaboration through frameworks such as IORA, BIMSTEC, ASEAN, RCEP, and ACD. Secretary Ranaraja congratulated Thailand on its leadership in hosting the upcoming BIMSTEC Summit in April 2025 and its associated events, including the BIMSTEC Young GEN Forum.
The year 2024 marks the 70th anniversary of diplomatic relations between Sri Lanka and Thailand. To commemorate this milestone, both countries plan to organize a series of knowledge-sharing seminars and events, including a logo competition and a commemorative post-box design initiative. The winners of the logo competition were recognized in an award ceremony held alongside the consultations.
Key outcomes of the discussions included agreements to revive the Cultural Memorandum of Understanding (MoU) and sign a Tourism Cooperation MoU. The next round of Bilateral Political Consultations will be hosted by Sri Lanka at a mutually agreed date.
The Thai delegation included senior officials from the Ministry of Foreign Affairs, while the Sri Lankan delegation comprised Ambassador Wijayanthi Edirisinghe, Director (South East Asia and Central Asia) Thilini Ihalage, Acting Director of Commerce Chandima Kiriwandala, and other diplomatic representatives.
On the sidelines of the consultations, Secretary Ranaraja met with Thailand’s Vice Minister of Foreign Affairs, Dr. Lalivan Karnchanachari, to discuss ways to enhance cultural diplomacy and deepen historical ties rooted in Theravāda Buddhism.
The 6th Round of Bilateral Political Consultations reinforced the enduring partnership between Sri Lanka and Thailand, reaffirming their commitment to strengthening diplomatic, economic, and cultural cooperation.
March 30, Colombo (LNW): Julie Kozack, Director of the Communications Department at the IMF said that reforms in Sri Lanka are bearing fruit.
Sri Lanka ran a current account deficit in the last quarter of 2024, and reserves were run down to repay debt, official data shows, after large volumes of money were printed to push down interbank rates by a few basis points in the period.
Sri Lanka’s imports surged in December 2024 in particular, after three months of excess liquidity from being injected to bring to the middle of a policy corridor or single policy rate
“The economic recovery is gaining momentum. Inflation remains low in Sri Lanka, revenue collection on the fiscal side is improving, and international reserves are continuing to accumulate. Economic growth reached 5 percent in 2024, and that was after two years of economic contraction. And we do expect the recovery to continue in 2025 in Sri Lanka.
These are all very positive developments for Sri Lanka and for the people of Sri Lanka,” she said at a media briefing in Washington.
Kozack said that the economy still does remain vulnerable, and therefore it is critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved.
On February 28th, the IMF Executive Board approved the Third Review under the EFF (Extended Fund Facility) arrangement for Sri Lanka. And this provided the country with immediate access to $334 million of support.
Once the Board approved that Third Review, the $334 million was made available to Sri Lanka to support its economic policies and reforms. And with this $334 million, it brings total financial support from the IMF to Sri Lanka to $1.34 billion
Sri Lanka ran a current account deficit in the last quarter of 2024, and reserves were run down to repay debt, official data shows, after large volumes of money were printed to push down interbank rates by a few basis points in the period.
Sri Lanka’s imports surged in December 2024 in particular, after three months of excess liquidity from being injected to bring to the middle of a policy corridor or single policy rate.
The liquidity was injected to push down interbank rates and undermine a scarce reserve regime as economic activities recovered.
The current account is a man-made accounting identity, which is a mirror image of the financial account in balance of payments accounting.
In the absence of money printing, any financial account inflows, invested domestically, also leads to imports, automatically triggering a deficit in the current account by increasing the availability of dollars from outside current inflow.
Reserve collecting central banks can run balance of payments deficits when printed money turns into credit and imports.
Countries can also be forced to repay debt by fresh borrowings or run down reserves including for imports themselves when interest rates incompatible with the BoP are maintained by ‘rate cuts’ enforced with inflationary open market operations.
March 30, Colombo (LNW): A recent audit report by the National Audit Office (NAO) has raised concerns over a major telecommunications company’s decision to write off Rs. 77.71 million in telecommunication tax dues as bad debts.
This development has sparked criticism regarding financial transparency and tax collection practices within the Telecommunications Regulatory Commission (TRC).
The sum in question comprises taxes collected from three private companies under the prominent telecommunications firm, originally intended for remittance to the TRC.
The breakdown of the amounts written off includes Rs. 35.77 million, Rs. 30 million, and Rs. 11.93 million. However, the company has informed both the Treasury and the TRC that the total will not be settled, as it has been classified as bad debts.
The NAO has criticized the failure to record this amount as a telecommunication tax receivable in financial statements, citing Section 3 of Part I of the Telecommunication Levy Act No. 21 of 2011.
The audit office has urged immediate measures to recover the outstanding tax, emphasizing the serious implications of allowing such write-offs.
In response, the TRC management explained that the amount was omitted from financial statements because an explanation letter was not received before the preparation of the 2023 accounts.
Consequently, despite a letter from the Competition Division to the Treasury, the sum was not included as a receivable. Additionally, as of December 31, 2023, trade debtors owed Rs. 372.76 million.
The audit report also reveals long-standing outstanding balances, including Rs. 15.10 million owed since 1976.
Furthermore, Rs. 174.80 million (46% of total debts) has been owed by another private company since 1993, while Rs. 145.25 million (40% of total debts) remains unpaid by the Sri Lanka Broadcasting Corporation since 1976.
The NAO attributes this issue to the absence of a structured system for recovering overdue frequency income.
The fiscal report released on February 17 indicates that as of October 2024, the Telecommunication Levy (TL) has achieved 73.3% of its annual revenue target, collecting Rs. 13.6 billion out of a projected Rs. 18.5 billion.
This shortfall highlights concerns about the efficiency of revenue collection. Compared to the same period in 2023, TL revenue has declined by 9.8%. In contrast, other tax revenues have increased by 34.6% to Rs. 106.4 billion, mainly due to higher cess charges and import-related taxes.
Despite these findings, TRC Director General Air Vice Marshal Bandula Herath stated he was unaware of the tax issue cited in the NAO report.
Furthermore, he confirmed that the matter had not been discussed at the TRC Board level, raising further questions about oversight and accountability in the sector.
