Sri Lanka is actively pursuing a bilateral trade agreement with the United States, aiming to bolster. exports while securing tariff relief for Sri Lankan goods in agreement with President Donald Trump’s recent directive to open local market for US exports,  .

The government’s official negotiating team has adopted a targeted strategy in their ongoing talks with the U.S. Trade Representative (USTR) to mitigate the impact of the proposed 30 percent Trump-era tariffs set to take effect on August 1. 

Following the formal notification on July 9, Sri Lankan officials held a first round of talks which reportedly made “progress,” with a second virtual round is now on.

The present administration is to target sector-specific relief, to be pointed specifically towards apparel, rubber-based products, and tea exports, which form the principal affected shipments.

Insiders close to the negotiators say Sri Lanka has been presented as a US trade partner at risk of economic instability, while stressing its economic reforms, geopolitical neutrality, and regional supply chain integration.

Sri Lanka is also leveraging regional allies’ diplomatic assistance and touting U.S. economic interests that benefit from low-cost manufacturing of the country.

Meanwhile, exporters and the Joint Apparel Association Forum have urged for immediate concessions to avoid disruptions to nearly US $2 billion worth of exports.

Sri Lankan officials have also said that the loss of revenues from US imports would not be very big and non-tariff issues could be discussed, but the country generally did not have non-tariff barriers against the US.

“The United States and Sri Lanka have discussed conducting virtual engagements on labor policy reforms and agricultural barriers,”a high official said. .

Economic Development Deputy Minister Anil Jayantha Fernando’s recent claim that the United States has suggested allowing 70–80 percent of Sri Lankan exports to enter the U.S. duty-free has been questioned amid a lack of official confirmation.

Speaking at  a television program, Fernando said America had proposed a list of 1,161 Sri Lankan products—clothing and 42 agricultural items—for potential tariff-free entry, as part of the current bilateral trade negotiations.

Yet trade specialists note that the U.S. has not made any public comment in support of such a wide-ranging offer.

The US Generalised System of Preferences (GSP) of which some duty-free access expired in 2020 and is yet to be renewed by the U.S. Congress. Apparel, Sri Lanka’s most vital export, has never been brought under such concessions because it is sensitive in US trade policy.

Fernando also revealed that the negotiations are in “final phase, “which is not so at the moment. No trade deal has been signed, and U.S. trade deals are typically lengthy, prolonged negotiations, with stakeholder consultations and Congressional approval

The Minister also hinted at a new agreement in importing oil from the U.S., explaining that Sri Lanka could redirect oil payments into higher trade flows. Yet this too remains speculative, with no public or commercial agreements reported.

Observers caution that while enhanced trade with the U.S. is a welcome goal, the figures and outcomes mentioned by the minister should be treated as provisional until confirmed by both governments.

Sri Lanka is on the verge of completing its debt restructuring process, with agreements already secured for the majority of its US$28 billion in outstanding external debt. Following recent breakthroughs including a deal with China Exim Bank and the successful Eurobond exchange the government has narrowed the unresolved portion to just US$0.8 billion, officials confirmed.

The Finance Ministry said that bilateral debt restructuring agreements have already been signed with major lenders India and Japan, while it’s negotiating with the rest of the members of the Official Creditor Committee (OCC). Talks are ongoing with other bilateral creditors like Saudi Arabia, Kuwait, Iran, and Pakistan to seal everything by 2025

A senior Treasury official noted, “We are now well advanced in our engagement with all stakeholders and expect to finalise agreements shortly. This marks a turning point in our economic recovery.”

The International Monetary Fund (IMF) in its latest review acknowledged that Sri Lanka has fulfilled the Enhanced Safeguards under its Lending into Official Arrears (LIOA) policy.

 With major creditors having signed Memoranda of Understanding (MOUs) or extended final restructuring terms, IMF approval for continued disbursement is no longer contingent upon the agreement of all creditors. Despite this progress, risks remain.

 A US$250 million legal dispute with Hamilton Reserve Bank (HRB), stemming from a defaulted sovereign bond, continues to pose a threat to the debt sustainability framework. However, the IMF has both indicated that the overall risk is manageable.

“The impact is limited due to the relatively small bond amount under dispute and the protective design of the ‘most favored creditor’ clauses in the restructured bonds,” a senior official explained. The U.S. court overseeing the HRB litigation recently denied a motion for summary judgment, instead granting Sri Lanka additional time for discovery, a development seen as a temporary relief.

Meanwhile, financial advisors have been appointed to restructure US$175 million in international bonds issued by Sri Lankan Airlines and guaranteed by the government. Smaller commercial obligations, under US$50 million, also remain on the restructuring agenda.

Other reform measures continue in parallel, including updates to governance structures in state-owned banks and tax issues affecting foreign transactions. The Central Bank is also addressing liquidity risks through the Internal Liquidity Adequacy Assessment Process (ILAAP).

As most of the external debt restructuring is nearing its completion, attention now turns to long-term debt sustainability, economic reforms, and the restoration of investor confidence in the path of recovery of Sri Lanka

The Dambulla Waste Management Facility, once hailed as a national model for recycling and wildlife-friendly innovation, has collapsed into disuse, reviving the garbage crisis in central Sri Lanka. The Rs. 650 million project, built with Japanese technology and branded Pivithuru Arana, now lies abandoned, with its infrastructure crumbling and garbage once again dumped in forest reserves.

Launched as an award-winning initiative, the facility once symbolized a breakthrough in modern waste management. It featured an organic fertilizer program, a polythene incinerator, and a dedicated hospital waste disposal system. A bamboo plantation supplied compost material, while electric vehicles ferried tourists around the site to observe elephants in a controlled environment. The project blended environmental protection with eco-tourism, offering an image of how Sri Lanka could manage waste while protecting wildlife.

That image has disintegrated. The iron fence built to keep elephants away from garbage has been dismantled, the bamboo plantation destroyed, and the electric vehicles left to decay. With the site shut down, waste from Dambulla and surrounding districts is again being transported to the Digampathaha reserve, where residents say elephants and other wild animals now scavenge through heaps of plastic and food waste. Environmentalists warn that this practice has already led to deaths among elephants and poses wider threats to forest ecosystems.

Dambulla Mayor Wasantha K. Rajamanthri has acknowledged the failure, attributing it to poor management under the previous administration and the difficulty of operating the facility with serious staff shortages. He said the municipal council lacked the capacity to sustain the project, which has been without proper maintenance for years.

The Dambulla collapse is part of a wider national crisis. Sri Lanka generates more than 8,000 metric tonnes of solid waste daily, with the Western Province accounting for the majority. Yet official data shows that less than 20 percent is recycled, while the rest is either openly dumped, burnt, or left unmanaged. A 2024 National Plastic Waste Inventory estimated that the country generates nearly 249,000 tonnes of plastic waste annually, but only 11 percent is recycled. Nearly 70 percent is mismanaged, with plastics leaking into rivers, oceans, and forests.

The Central Environmental Authority, along with the Department of Wildlife, the Department of Forest Conservation, and the Dambulla Municipal Council, has announced plans to restart the project. But experts caution that without professional management, secure financing, and continuous oversight, any revival will be short-lived.

 The Dambulla case underscores a larger truth: Sri Lanka’s waste crisis is not due to a lack of projects or investment, but to weak operations, poor governance, and political discontinuity. Until those flaws are addressed, ambitious recycling initiatives risk ending where Dambulla has — in ruins, leaving wildlife and communities to pay the price.

A new mechanism to provide fertiliser to tea cultivators will be introduced within the next two weeks, Plantation and Community Infrastructure Minister Samantha Vidyarathna announced.

He made the statement while chairing the Ministerial Consultative Committee on Plantation and Community Infrastructure, which convened in Parliament on September 12.

Deputy Minister Sundaralingam Pradeep also took part in the discussions, which focused on addressing key issues faced by the plantation sector.

Justice and National Integration Minister Harshana Nanayakkara yesterday described the establishment of evidence rooms for children to give safe testimony as a “turning point” in Sri Lanka’s judicial system.

The Minister made these remarks via video technology during the launch of a programme to streamline services for child victims of violence, held in Kandy.

Marking a significant step, an evidence room equipped with digital facilities was opened at the Kandy High Court, allowing child victims to provide testimony in a safe and protected environment. This is the first such facility in the country, with similar rooms planned for courts nationwide.

Minister Nanayakkara emphasized the government’s commitment to child protection, noting: “Children who become victims and come before the law should be able to give evidence safely. Leaving a safe country for children is a top priority.”

He also expressed gratitude to the European Union and UNICEF for their support in providing the necessary facilities, while announcing that stronger laws for child protection will be introduced in the future.

In a landmark ruling, the Anuradhapura Provincial High Court yesterday ordered authorities to provide proper facilities ensuring “reasonable access” for differently-abled individuals at stations along the recently renovated Mahawa–Vavuniya railway track.

The Court made this decision after considering a petition filed by N.G. Kamalawathi, President of the Disabled Women’s Association, who argued that her rights were violated due to the absence of accessible facilities.

The Court observed that the required access measures had not been properly implemented during the renovation works and directed that necessary facilities be established in accordance with regulations at the earliest possible time.

Sri Lanka has set ambitious plans to achieve a fivefold expansion of its digital economy, aiming for US$15 billion within the next four years, Chief Advisor to the President on the Digital Economy and ICTA Chairman Dr. Hans Wijeyasuriya announced yesterday.

Delivering the keynote address at the main conference of Disrupt Asia 2025, Dr. Wijeyasuriya highlighted the government’s roadmap for digitalisation, positioning Sri Lanka as South Asia’s innovation hub.

He outlined three key priorities: tripling digital exports, doubling the digital talent pool, and elevating the country’s standing in global digital rankings by improving 25 points on international benchmarks.

“These steps are essential for unlocking Sri Lanka’s potential as a leader in the regional innovation landscape,” Dr. Wijeyasuriya said.

Sri Lanka’s Women Parliamentarians’ Caucus held discussions with the Westminster Foundation for Democracy (WFD) and the Law and Society Trust (LST) on September 12, 2025, under the patronage of Prime Minister Dr. Harini Amarasuriya and Caucus Chairperson, Minister of Women and Child Affairs, Saroja Savitri Paulraj, according to the Department of Communication of Parliament.

During the meeting, the WFD proposed avenues of support including gender-sensitive law-making, gender-responsive budgeting, and enhancing the role of the Caucus in increasing women’s labour force participation. The foundation also pledged research and policy support to strengthen Parliament as a gender-sensitive institution.

Caucus members emphasized the importance of addressing grassroots-level activism in addition to higher-level political engagement. They highlighted the need to mobilize women at the community level as a critical step toward meaningful change. The meeting also noted challenges faced by women parliamentarians and underscored the importance of establishing support mechanisms such as counselling.

The session further explored intergenerational dialogue to encourage young women’s entry into politics. LST representatives invited the Caucus members to participate in their programme scheduled from September 16 to 19, 2025.

Deputy Chairperson of Committees, MP Hemali Weerasekera, along with MPs (Dr.) Kaushalya Ariyarathne, Krishnan Kalaichelvi, Nilanthi Kottahachchi (Attorney-at-Law), Thushari Jayasingha (Attorney-at-Law), Anushka Thilakarathne (Attorney-at-Law), Deepthi Wasalage, Hiruni Wijesinghe (Attorney-at-Law), Oshani Umanga, Ambika Samivel, and Lakmali Hemachandra (Attorney-at-Law) also attended the meeting.