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Cybercrime Rises Sharply in Sri Lanka amid Surge in Social Media and AI Exploits

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Cybercrime Rises Sharply in Sri Lanka amid Surge in Social Media and AI Exploits

By: Staff Writer

July 27, Colombo (LNW): Sri Lanka is facing an alarming spike in cybercrime incidents in 2025, underscoring the country’s growing vulnerability in the digital era.

The Sri Lanka Computer Emergency Readiness Team (SLCERT) has reported over 5,400 cybercrime complaints so far this year—a significant surge that signals the urgent need for stronger cybersecurity measures and public awareness.

The vast majority of these cyber incidents are tied to social media misuse, with Facebook accounting for nearly 90% of reported cases. Other platforms such as WhatsApp, Instagram, TikTok, and Snapchat have also become common venues for malicious activity.

 Experts note a sharp increase in crimes facilitated by artificial intelligence (AI), including AI-generated malware, deepfakes, and phishing scams, which are now being used not only for financial theft but also for harassment and misinformation.

Sri Lanka’s digital landscape—with over 7 million internet users and widespread use of social media—has become fertile ground for cybercriminals.

Fake profiles, hacked accounts, and hijacked messaging platforms like WhatsApp have become rampant. Cyberattacks are increasingly targeting not only individuals but also key institutions, raising concerns over national digital infrastructure resilience.

In March, several banks were hit by ransomware attacks, leading to the leak of nearly 1.9 terabytes of sensitive data, including national ID images and financial records.

In June, the National Water Supply and Drainage Board’s SMS gateway was compromised, with customers receiving ransom demands via the agency’s official shortcode—a breach that highlighted serious flaws in public sector digital defenses.

The Sri Lanka Police and Criminal Investigation Department (CID) have issued multiple warnings about the escalation of crimes using encrypted apps like Telegram, Skype, and WeChat.

Authorities say many cases involve sophisticated online financial fraud, where scammers trick victims using fake investment returns or fraudulent remote job offers. Often, victims are manipulated into sharing personal data or laundering money unwittingly.

Even more alarming is the rise in cyber-enabled human trafficking. Young Sri Lankans are being lured overseas with fake employment opportunities, only to be forced into online scam operations under duress.

Law enforcement and cybersecurity agencies are now ramping up public awareness efforts. SLCERT and the Police urge users to avoid suspicious links, protect passwords and OTPs, activate two-factor authentication, and review privacy settings regularly. They also advise against transferring money received from unknown sources or sharing banking details online.

As Sri Lanka’s digital footprint expands, experts stress that proactive cyber hygiene, public vigilance, and stronger institutional safeguards are essential to contain this rising wave of cybercrime.

Sri Lanka Boosts Sustainable Business Drive with Apparel Sector Overhaul

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Sri Lanka Boosts Sustainable Business Drive with Apparel Sector Overhaul

By: Staff Writer

July 27, Colombo (LNW): As Sri Lanka’s traditional export pillars—apparel, tea, and rubber—face growing pressure from evolving global trade regulations and punitive taxes, especially from key markets like the United States, the need for resilient, sustainable, and transparent business practices has never been more urgent.

U.S. tariffs and environmental scrutiny have begun to weigh on Sri Lanka’s export competitiveness, particularly affecting labor-intensive sectors such as garments and plantations, where ethical sourcing and sustainability are becoming prerequisites rather than options.

In this context, the launch of the Improving Transparency for Sustainable Business (ITSB) programme offers a timely strategic boost to Sri Lanka’s apparel sector, helping it align with global Environmental, Social, and Governance (ESG) standards.

Spearheaded by the Global Reporting Initiative (GRI) South Asia, in collaboration with the Sustainable Development Council (SDC) of Sri Lanka, the Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF), the initiative is supported by funding from the Swedish International Development Cooperation Agency (SIDA).

The programme aims to embed globally accepted sustainability reporting standards into the operations of Sri Lankan apparel exporters.

According to Rahul Singh, Senior Manager for GRI South Asia, “ITSB is designed to elevate sustainability practices and transparency across South Asia’s textile and apparel sector, positioning it for long-term resilience, profitability, and global leadership.”

By adopting the GRI Standards—the world’s most widely used framework for sustainability reporting—Sri Lankan businesses stand to improve investor confidence, comply with stricter global regulations such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), and maintain relevance in markets where traceability and ethical sourcing are now non-negotiable.

JAAF emphasized that the ITSB programme is not just about compliance but about capacity building. Participating apparel companies will receive training to report on key sustainability metrics such as labour practices, energy and water consumption, climate impact, and waste management.

These factors are increasingly being monitored by global buyers and regulators when determining supply chain viability.The programme also includes collaboration with a broader network of stakeholders, including regulators, worker groups, industry bodies, academics, and the media, ensuring that the sustainability transformation is comprehensive and inclusive.

 Given that apparel contributes more than 40% of Sri Lanka’s export revenue and provides direct employment to over 350,000 people, JAAF notes that the ITSB programme marks a critical pivot toward a more competitive and future-ready industry

As global markets evolve and trade barriers rise, initiatives like ITSB are essential to safeguard Sri Lanka’s export resilience while promoting responsible business practices that meet international expectations.

Port City Tax Exemptions Spark Fiscal Policy Concerns

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Port City Tax Exemptions Spark Fiscal Policy Concerns

By: Staff Writer

July 27, Colombo (LNW): Sri Lanka’s move to grant sweeping tax exemptions to four companies developing major projects in the Colombo Port City has drawn attention amid commitments made to the International Monetary Fund (IMF) to reform the country’s investment incentive framework.

Under Extraordinary Gazette notifications dated July 14, 2025 (Nos. 2445/2 to 2445/5), the four firms were designated as “Authorised Persons” and their developments labeled “Businesses of Strategic Importance” under the Colombo Port City Economic Commission Act. This designation qualifies them for generous tax concessions spanning up to 35 years, raising concerns over consistency with fiscal reforms pledged under Sri Lanka’s ongoing IMF program.

The Scope of Tax BenefitsAll four companies will enjoy full exemptions from:

Corporate Income Tax, Withholding Tax, and Dividends Tax for 25 years

VAT, Customs Duties, Excise Duties, PAL, and other import/export levies for 25 years

A reduced income tax rate of 50% for the following 10 years

Exemptions from employment-related levies and exchange control laws

The tax holidays under the Inland Revenue Act are valid until July 2060, while others extend until 2050.

Projects and Local Collaborations

1. Ceylon Real Estate Holdings (Pvt) Ltd

A subsidiary of Browns Investments PLC (under LOLC Group), this company will develop a USD 411 million mixed-use business and residential hub on Plot 1-02-01, including office towers, retail areas, and luxury apartments. Land cost alone totals LKR 32.15 billion. It expects to generate thousands of jobs and host global service industries.

2. Clothespin Management and Development (Pvt) Ltd

A Sri Lankan-incorporated entity believed to be connected to Middle Eastern investors, it will develop the iconic “Clothespin Towers” on Plot 2-01-11. The USD 540 million twin-tower development will feature a seven-star hotel, upscale residences, and what is promoted as the world’s largest art gallery.

3. IFC Colombo (Pvt) Ltd

Fully owned by CHEC Port City Colombo (Pvt) Ltd, a subsidiary of China Harbour Engineering Company (CHEC), this entity will build a USD 142 million mixed-use complex on Plot 1-01-02. CHEC is a state-owned Chinese firm and the primary investor in Port City infrastructure.

4. ICC Port City (Pvt) Ltd

This company is affiliated with the International Construction Consortium (ICC), a top local construction firm. It will invest USD 66 million and LKR 13.8 billion in a luxury residential project on Plot 1-02-05, targeting high-net-worth investors and expatriates.

IMF Oversight and Policy Contradictions

While these projects are positioned as strategic investments, the IMF has repeatedly warned against granting unilateral tax holidays without proper oversight. In its July 2025 Fourth Review Report, the IMF highlighted the need to end discretionary tax exemptions, citing risks to transparency, revenue stability, and investor confidence.

Sri Lanka has pledged not to grant fresh exemptions under the Port City and Strategic Development Projects (SDP) Acts until a revised, rule-based legal framework is enacted later this year. Despite this, in its recent Memorandum of Economic and Financial Policies (MEFP) to the IMF, the government admitted that 24 companies, including the four above, had already received tax concessions without prior IMF consultation.

Looking Ahead

These projects are expected to boost Sri Lanka’s appeal as a hub for real estate, tourism, and financial services. However, economists and analysts stress the need for greater transparency in awarding incentives and alignment with macroeconomic goals. Upcoming legislative amendments to the Port City and SDP Acts—due by October 2025—will likely define how Sri Lanka balances investment promotion with fiscal prudence going forward.

Call for Sri Lankan President to mediate in Thailand–Cambodia dispute gains support from Buddhist clergy

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Call for Sri Lankan President to mediate in Thailand–Cambodia dispute gains support from Buddhist clergy

July 27, Colombo (LNW): Venerable Omalpe Sobhitha Thera has publicly urged President Anura Kumara Dissanayake to step forward as a neutral mediator in the escalating tensions between Thailand and Cambodia, calling for a peaceful resolution grounded in shared cultural and spiritual heritage.

Speaking on behalf of the Maha Sangha, Ven. Sobhitha Thera emphasised that the President holds full constitutional authority to engage in such diplomatic efforts and highlighted the urgency of initiating dialogue with leaders from both nations.

He suggested that any talks be held with the active participation of Buddhist monastic representatives, framing the dispute within a context of compassion and centuries-old religious ties.

The request follows the unanimous approval of a formal resolution by the Supreme Council of the Sangha, backing Sri Lanka’s potential role as a peace envoy in the regional conflict. The Thera underlined the importance of both Thailand and Cambodia—countries with deep-rooted Buddhist traditions—approaching the situation with restraint and mutual respect, mindful of the cultural and spiritual legacy they have preserved over generations.

“Sri Lanka has long stood as a centre of Theravāda Buddhism. In moments like these, we have a responsibility to offer leadership rooted in our values,” Ven. Sobhitha Thera said. He called upon both state authorities and religious communities across Sri Lanka, regardless of faith, to support a collective effort to initiate dialogue and contribute to a peaceful settlement.

BYD Vehicle Tax Discrepancy Sparks Controversy amid SL’s Green Mobility Push

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BYD Vehicle Tax Discrepancy Sparks Controversy amid SL’s Green Mobility Push

By: Staff Writer

July 27, Colombo (LNW): Sri Lanka’s push toward a greener transport future has hit a roadblock with serious concerns raised over tax discrepancies in the importation of New Energy Vehicles (NEVs), particularly models from global EV giant BYD. Allegations of irregularities have sparked debate in Parliament and drawn concern from industry stakeholders.

Samagi Jana Balawegaya (SJB) MP Mujibur Rahuman has accused authorities of facilitating a potential tax evasion scheme involving the importation of BYD vehicles. Speaking in Parliament, he cited a stark difference in taxation between brand-new and used models of the BYD ATTO 3.

According to Rahuman, a brand-new ATTO 3 vehicle, declared with a 100 kW battery, was taxed Rs. 5.5 million. In contrast, a used ATTO 3 model, allegedly registered as 150 kW, was taxed at Rs. 10 million. “The used vehicle is being registered with a higher kilowatt capacity than the new one, leading to a Rs. 4.5 million tax discrepancy,” he claimed. The implication, he warned, is the possible under-declaration of vehicle specifications for tax avoidance.

The allegations have prompted multiple vehicle importer associations and car trader groups to urge the Ministry of Finance to investigate the issue immediately. They warn that such discrepancies not only undermine fair competition but also risk significant losses in government tax revenue.

The controversy comes just months after Sri Lanka lifted its long-standing vehicle import ban in January 2025. The move allowed BYD — the world’s leading NEV brand — to officially enter the Sri Lankan market. The first shipment of BYD vehicles, including the SEALION 6, ATTO 3, and DOLPHIN models, arrived on March 14. These imports were hailed as a milestone in the country’s transition to sustainable mobility.

BYD’s entry was expected to significantly boost Sri Lanka’s NEV landscape, with the importing firm aiming to create a model for green transport adoption in the region. The initial delivery marked the culmination of years of groundwork and regulatory advocacy, paving the way for advanced, environmentally friendly transport solutions for Sri Lankan consumers.

Industry observers note that the BYD launch was meant to be a cornerstone of Sri Lanka’s NEV strategy, providing access to cutting-edge electric vehicle technology. However, the recent tax discrepancy allegations could tarnish that progress unless addressed promptly.

With further shipments of BYD models expected in the coming months, stakeholders now look to authorities to ensure transparency and proper enforcement of customs regulations. Resolving these concerns is seen as vital not only for public trust but also for maintaining momentum in the nation’s green mobility ambitions.

Navy intensifies crackdown on illegal fishing: Dozens arrested

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Navy intensifies crackdown on illegal fishing: Dozens arrested

July 27, Colombo (LNW): In a concerted effort to curb unlawful maritime practices, the Sri Lanka Navy has apprehended 65 individuals linked to illegal fishing activities during a series of targeted operations carried out between July 09 and 22, 2025.

The operations, spanning key coastal regions, also led to the confiscation of 16 dinghies used in unauthorised fishing ventures.

The coordinated efforts were executed under the direction of the Navy’s Eastern, North Western, and North Central Commands. Patrol teams were active in several high-risk zones including Salpearu, Uppural, Polmalkuda, Nilaveli, and Maleimunthal in the Trincomalee district, as well as Ippantivu and the northern coastal belt of Mannar.

Additionally, several individuals were intercepted whilst attempting to transport marine species such as sea cucumbers and conch shells without the necessary permits.

In the course of the operations, five illegal fishing nets were also seized alongside the impounded vessels. The suspects and confiscated equipment were subsequently handed over to various regional offices of the Department of Fisheries and Aquatic Resources, including those in Trincomalee, Echchalampattu, Puttalam, Kuchchaveli, Cod Bay, and Mannar, where legal proceedings are now underway.

AG appoints committee to examine Supreme Court’s ruling on X-Press Pearl disaster

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AG appoints committee to examine Supreme Court’s ruling on X-Press Pearl disaster

July 27, Colombo (LNW): Attorney General Parinda Ranasinghe has established a specialised committee to closely analyse the recent Supreme Court ruling concerning the MV X-Press Pearl maritime disaster, which caused extensive environmental damage off Sri Lanka’s western coast, a report by the Sunday Times disclosed.

The initiative comes in response to the court’s landmark verdict criticising the legal approach taken by the Attorney General’s Department during the initial proceedings.

Comprising two senior officers from the AG’s Department, the committee has been tasked with reviewing the full 361-page judgment and offering recommendations on the next steps.

The verdict found that the actions of the Attorney General at the time of the incident violated the fundamental rights of the petitioners, particularly in relation to the decision to pursue civil litigation in Singapore rather than in Sri Lanka’s own High Court, which holds jurisdiction over maritime affairs.

The Supreme Court described the move as arbitrary and not aligned with the country’s best interests, calling it unreasonable and irrational. As such, the newly appointed committee is expected to scrutinise the legal rationale behind the choice to litigate abroad and explore how best to execute the Supreme Court’s orders going forward.

In addition to reviewing procedural missteps, the committee will also assess mechanisms for securing the US$1 billion in compensation ordered by the court from the Singapore-based X-Press Pearl Group and its local agent.

These entities were held legally responsible for the catastrophic fire and chemical spill that resulted from the vessel’s sinking, one of the worst environmental disasters in Sri Lanka’s maritime history.

The Attorney General’s Department is under increasing pressure to act decisively, both to implement the court’s directive and to restore public confidence in its ability to protect national interests in matters of international litigation and environmental accountability.

Forest authorities launch probe into firearms in protected reserves amid rise in wildlife shootings

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Forest authorities launch probe into firearms in protected reserves amid rise in wildlife shootings

July 27, Colombo (LNW): The Department of Forest Conservation has initiated a focused investigation into the suspected presence and use of firearms within protected forest reserves, following a worrying surge in shootings involving wild animals—particularly elephants.

According to Chandima Palamakumbura, Director General of Forest Conservation, the department has dispatched multiple regional teams to look into reports of illegal hunting activity and the unauthorised carrying of firearms in conservation areas.

The probe aims to uncover the sources of these weapons, identify those responsible, and strengthen enforcement mechanisms within Sri Lanka’s forested regions.

The initiative comes amid growing alarm from conservationists and environmental groups, who have condemned the rising number of incidents involving gun violence against wildlife.

The killings of elephants—many of which are protected under national legislation—have sparked renewed calls for stricter surveillance and harsher penalties for offenders.

Forest authorities have vowed to treat the issue with urgency, noting that protecting biodiversity and maintaining the ecological balance of the country’s forests is a national priority.

Inquiry report into Sabaragamuwa University student’s death submitted to Vice-Chancellor

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Inquiry report into Sabaragamuwa University student’s death submitted to Vice-Chancellor

July 27, Colombo (LNW): A detailed investigative report concerning the recent death of a student from the Faculty of Technology at Sabaragamuwa University has been formally submitted to the institution’s Vice-Chancellor, Professor Sunil Shantha.

The report, compiled by a five-member independent committee, marks a key development in the ongoing inquiry into the circumstances surrounding the tragic incident.

According to Professor Shantha, the findings will be forwarded to the University Grants Commission (UGC) in the coming week for further review and official disclosure.

The committee’s investigation was extensive, drawing on a wide range of evidence. A committee member revealed that approximately 70 individual testimonies were recorded from fellow students.

In total, more than 150 hours of material were reviewed, which included oral and written statements, as well as photographic evidence, video recordings, and content sourced from social media platforms.

The inquiry was launched amidst growing public concern and student unrest, with many calling for a transparent and thorough examination of the events that led to the student’s death.

Sri Lanka to offer one-year visas to Maldivians in bid to revive regional tourism

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Sri Lanka to offer one-year visas to Maldivians in bid to revive regional tourism

July 27, Colombo (LNW): In a strategic move to strengthen regional tourism and economic ties, Sri Lanka will begin issuing one-year visas to citizens of the Maldives starting 1 August 2025, Foreign Minister Vijitha Herath announced on July 25.

Delivering remarks at a tourism exhibition held in Colombo, Minister Herath said the decision followed extensive policy consultations aimed at revitalising the country’s struggling tourism industry by encouraging greater inflows from neighbouring nations.

“Previously, Maldivian visitors were only eligible for short-term visas under limited conditions. This new policy will allow them to stay for up to a year, with particular focus on promoting medical tourism and longer visits,” he explained.

Sri Lanka has long been a favoured destination for Maldivians seeking advanced medical care and educational services. However, the introduction of stricter visa conditions in recent years led to a noticeable decline in arrivals from the island nation. Officials now hope that the revised visa policy will reinvigorate travel between the two countries, offering mutual economic benefit.

The announcement comes just days before Sri Lankan President Anura Kumara Dissanayake is scheduled to travel to Malé at the invitation of Maldivian President Dr Mohamed Muizzu. The visit, set for next Monday, will include high-level talks on expanding cooperation in tourism and hospitality, with particular attention to creating opportunities for Sri Lankan suppliers to collaborate with hotels and resorts in the Maldives.

This visa reform aligns with Sri Lanka’s broader strategy to make the island more accessible to global visitors. In a related move, the government recently removed visa fees for travellers from 40 countries—including the United Kingdom—aiming to make the destination more competitive in the post-pandemic tourism landscape.

Whilst acknowledging that such initiatives may lead to short-term revenue losses through visa fees, Minister Herath stressed that the long-term benefits of increased tourist arrivals and stronger regional partnerships would more than compensate for the initial fiscal impact.

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