Speaker Dr. Jagath Wickramaratne met with EU Ambassador to Sri Lanka, Carmen Moreno, at the Parliament premises on March 17. Parliament Secretary General Kushani Rohanadeera was also in attendance.
The discussion primarily focused on enhancing cooperation between the European Parliament and the Parliament of Sri Lanka. Ambassador Moreno extended her best wishes on Sri Lanka’s political transformation and evolving political culture.
Additionally, the meeting covered key topics such as the country’s current political landscape, the tourism industry, and the rising number of European Union tourists visiting Sri Lanka.
The Office of former President Ranil Wickremesinghe issued a statement on Tuesday denying allegations that he and his spouse, Prof. Maithree Wickramasinghe, used state funds for a private visit to London in 2023.
The statement refuted claims that a substantial amount of government money was spent on the visit, arguing that such assertions misrepresent the nature of diplomatic trips and indicate a lack of understanding by the current administration.
According to the statement, Wickremesinghe traveled to London three times in 2023. His first visit was on May 9 to attend the coronation of King Charles III. The second trip was for the 40th anniversary session of the International Democratic Union (IDU), while en route to the Paris Summit.
His third visit occurred after attending the G77 Summit in Havana and the United Nations General Assembly (UNGA) in New York. During this period, Prof. Maithree Wickramasinghe was conferred the title of Professor by the University of Wolverhampton in the UK. Wickremesinghe attended the ceremony as an invited guest while returning from his official engagements, the statement clarified.
The former President’s Office concluded that no private visits were undertaken at state expense in 2023 and dismissed all allegations as false.
President Anura Kumara Dissanayake asserted that trade union actions by healthcare professionals cannot be justified, given that the government granted the largest salary increase in history without any demands or pressure from professional associations.
During a meeting at the Presidential Secretariat with the Public Services United Nurses Union (PSUNU) on March 19, the President emphasized that despite financial constraints, the government has prioritized salary increases for public sector employees.
This move, introduced as part of the 2025 budget, aims to enhance public service efficiency, attract skilled professionals, and ensure the sector’s long-term sustainability.
The President outlined six key salary adjustments, including a Rs. 15,000 basic salary hike, increased overtime and holiday allowances, an 80% salary increment, revised pension benefits, and a raised taxable income threshold.
While PSUNU officials acknowledged the positive impact of the salary revisions, they also raised concerns about ongoing challenges in the nursing profession, urging the President to address these pressing issues.
The Committee on Public Finance has raised concerns over why only 800,000 individuals fall under the tax net when Sri Lanka’s workforce comprises approximately 8 million people. Officials from the Ministry of Finance, along with Deputy Minister Dr. Harshana Suriyapperuma, explained that only around 800,000 meet the income tax threshold.
Chaired by MP Dr. Harsha de Silva, the Committee convened on March 18, 2025, to discuss the Inland Revenue (Amendment) Bill. The Bill proposes increasing the Personal Income Tax (PIT) relief threshold from Rs. 1.2 million to Rs. 1.8 million per annum. Additionally, it seeks to raise the income tax rate on betting, gaming, tobacco, and liquor industries from 40% to 45%, impose a 15% income tax on the export of services, and increase the Withholding Tax (WHT) rate on interest from 5% to 10%.
During discussions, the Committee noted discrepancies in PAYE data and directed officials to provide a more accurate analysis. It was also revealed that the implementation of the Taxpayer Identification Number (TIN) system—crucial for taxation and trade-related services—has not been functioning effectively.
The Committee expressed dissatisfaction over the Ministry’s failure to establish a casino regulator and criticized the Inland Revenue Department for not providing requested data on casino revenue over the past five years. Additionally, concerns were raised over the requirement for a 25% cash deposit for tax appeals, questioning whether it is ethical to demand cash instead of a bank guarantee. Deputy Minister Suriyapperuma defended the measure, arguing that some use appeals to evade taxes.
Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, North-western and Northern provinces and in Galle and Matara districts after 2.00 p.m.
Fairly heavy showers above 50 mm can be expected at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.
Several spells of showers may occur in Eastern and Uva provinces and in Hambanthota and Polonnaruwa districts.
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 minimize damages caused by temporary localized strong winds and lightning during thundershowers.
March 20, Colombo (LNW): The Asian Development Bank (ADB) has approved a $200 million loan to upgrade Sri Lanka’s power sector infrastructure, enhancing the reliability of transmission and distribution networks and facilitating greater integration of renewable energy.
The Cabinet of Ministers on Monday approved the launch of a procurement process to select consultants for the Electricity Sector Strengthening and Renewable Power Consolidation Project, backed by funding from the Asian Development Bank (ADB).
The project aims to address rising electricity demand by upgrading the transmission and distribution networks managed by the Lanka Electricity Company Ltd., (LECO) and the Ceylon Electricity Board (CEB).
“Driving power sector reforms, combined with targeted infrastructure interventions, is essential to facilitate competitive renewable energy development and reduce power generation costs,” said ADB Country Director for Sri Lanka Takafumi Kadono. “By expanding and modernizing infrastructure and incorporating digitalization solutions, this project will support the government’s goal of increased integration of renewable energy in the electricity mix, reduce power interruptions, and minimize transmission and distribution losses.
Sri Lanka achieved 100% household electrification in 2016. Peak demand reached around 2,800 megawatts (MW) in 2023, including contributions from distributed renewable energy, and is projected to grow significantly by 2030. While Sri Lanka’s total installed power generation capacity reached 5,191 MW in 2023, about 50% of the country’s electricity generation in 2023 came from thermal power plants, underscoring the challenges in transitioning to a more sustainable energy mix. In its updated nationally determined contribution, the government has set an ambitious target of 70% electricity generation from renewables by 2030 and carbon neutrality in electricity generation by 2050.
The Power System Strengthening and Renewable Energy Integration Project will enhance climate resilience and expand the capacity of transmission and distribution networks, enabling greater integration of renewable energy. The project will expand the 220-kilovolt and 132-kilovolt transmission infrastructure with new transmission lines and substations, modernize the medium voltage distribution network, and upgrade grid protection systems. The project will introduce Sri Lanka’s first grid-scale battery energy storage system at the transmission level, establish a renewable energy center to forecast and monitor renewable energy generation, and implement network automation systems with SCADA and remote terminal units, providing operators with real-time data and alerts to ensure efficient power delivery.
The approval of this project reflects the significant progress made by Sri Lanka in advancing power sector reforms, which aims to enhance financial sustainability, ensure cost recovery tariff revisions, and competitive renewable energy development. ADB’s support for infrastructure upgrades is contingent on these reforms, recognizing their critical role in renewable energy integration and improving the sector’s overall performance.
The project will strengthen the institutional capacities of Ceylon Electricity Board (CEB) and Lanka Electric Company (LECO)—the only utilities in the country responsible for power delivery to end-consumers. The project will improve their ability to integrate and manage renewable energy systems, adopt digital solutions, and enhance hosting capacity of rooftop solar installations.
Various career development activities for CEB and LECO female staff, awareness-raising programs on safe and productive use of electricity, training on adopting clean energy solutions for women-led groups and businesses will be implemented.
Of the total amount, $150 million will be provided to CEB and $50 million will go to LECO. Both financing will be guaranteed by the Democratic Socialist Republic of Sri Lanka.
March 20, Colombo (LNW): Sri Lanka’s tea industry experienced a dip in exports during February 2025, despite showing positive growth in some of its key international markets. The total quantity of tea shipped out in February amounted to 20.40 million kilograms, marking a decline of 1.91 million kilograms compared to 22.31 million kilograms in February 2024. According to Forbes & Walker, this downturn was seen across most categories, except for packeted tea, which continued to perform well.
The Free on Board (FOB) value for February 2025 was recorded at Rs. 1,737.25 per kilogram, reflecting a decrease of Rs. 51.91 per kilogram when compared to Rs. 1,789.43 per kilogram in the same month last year. However, in US Dollar terms, there was a slight increase of $0.13 per kilogram, indicating some resilience in the global market.
For the first two months of 2025, cumulative tea exports stood at 39.77 million kilograms, a drop of 1.30 million kilograms from 41.07 million kilograms in the same period in 2024. While tea packets, tea bags, and instant tea categories reported growth, the bulk tea and green tea sectors experienced a decline. The overall FOB value for January-February 2025 was Rs. 1,730.34 per kilogram, showing a decrease of Rs. 40.58 per kilogram from Rs. 1,770.92 per kilogram in the first two months of 2024. Despite this fall in Rupee terms, all categories, except instant tea, experienced gains when measured in US Dollar terms.
Iraq emerged as the leading importer of Ceylon Tea, importing 5.96 million kilograms in the first two months of 2025, reflecting a 13% increase year-on-year (YoY) from 5.30 million kilograms in 2024. Russia, the second-largest importer, saw a 10% YoY decline, bringing in 4.08 million kilograms compared to 4.52 million kilograms in 2024. Libya, in third place, recorded a remarkable 653% increase in imports, reaching 3.63 million kilograms from just 0.48 million kilograms in the previous year.
Other major importers such as the UAE and Turkey experienced notable declines, with the UAE seeing a 44% YoY decrease to 2.78 million kilograms, and Turkey a 34% drop to 1.96 million kilograms. On a more positive note, Chile’s imports increased by 26%, reaching 1.84 million kilograms. Saudi Arabia and China each imported 1.59 million kilograms, while Azerbaijan followed closely with 1.50 million kilograms. Iran, however, saw a sharp 55% decline, importing only 1.29 million kilograms compared to 2.9 million kilograms in 2024.
These mixed results highlight the volatility of Sri Lanka’s tea export market, where some regions have seen growth, while others have faced setbacks, signaling the need for continued market adaptation and strategic approaches.
March 20, Colombo (LNW): Sri Lanka’s economy made a significant recovery in 2024, posting a 5% growth, reversing the 2.3% contraction seen in 2023. This turnaround was driven by strong performances in the industrial and services sectors, which grew by 11% and 2.4%, respectively, compared to previous declines in 2023. The agriculture sector grew by a modest 1.2%, a slowdown from the 2.6% growth in 2023.
The breakdown of GDP contributions at current prices showed the services sector leading with 57.5%, followed by industry at 25.5%, and agriculture at 8.3%. Additionally, taxes less subsidies contributed 8.7%. In the fourth quarter of 2024, the economy grew by 5.4%, outperforming the 4.3% growth of the same quarter in 2023, with industrial activities growing by 13.1% and services by 2.5%. However, agriculture faced challenges, posting a 2.2% decline in the same period.
This positive growth follows two consecutive years of economic decline in 2022 and 2023, signaling a path toward a more optimistic economic outlook. The growth was supported by higher export and import volumes, increased port activities, and greater vehicle registrations, especially for freight and agricultural vehicles. A stabilizing Sri Lankan rupee and declining inflation further contributed to this improved economic environment. Private sector credit and liquidity also increased due to lower interest rates.
The recovery was notably driven by key sectors like manufacturing, construction, trade, and transport, which experienced expansions. Notably, industrial activities grew by 11%, recovering from a 9.2% decline in 2023. Sub-sectors like construction and mining saw robust growth of 19.4%. Manufacturing also reported positive results, with notable increases in basic metal products, textiles, furniture, chemicals, and food processing, among others.
Services also contributed to the recovery, with a 2.4% growth compared to a slight decline in 2023. Key drivers included accommodation, food services, and postal services, while sectors like insurance, public administration, and health care showed declines.
Agricultural activities grew by just 1.2%, down from 1.6% in 2023. Some segments within agriculture, like animal production and cereal growing, reported strong growth, while others, including plant propagation and growing of coconuts, experienced significant declines.
Overall, the economy of Sri Lanka in 2024 showed resilience and positive momentum across various sectors, offering hope for sustained growth in the coming years.
March 20, Colombo (LNW): Sri Lanka currently benefits from the European Union’s Generalised Scheme of Preferences Plus (GSP+) program, which grants preferential access to EU markets. However, continued eligibility for these trade privileges depends on adherence to international conventions. The upcoming assessment by an EU delegation will play a critical role in determining Sri Lanka’s future under this scheme.
The Sri Lankan government faces pressure to fulfill several obligations, including repealing the Prevention of Terrorism Act (PTA) and amending the Online Safety Act, to meet the updated requirements for GSP+ eligibility. Additionally, improvements in anti-corruption measures are necessary to align with the EU’s revised criteria for beneficiary countries, which will come into effect in 2027.
As of 2023, the EU is Sri Lanka’s second-largest trading partner, accounting for 12.4% of the country’s total trade. The primary exports to the EU include textiles and rubber products, with 49% of Sri Lanka’s total EU exports benefiting from GSP+ preferences, and a preference utilization rate of 59%.
The current GSP+ scheme remains valid until 2027, but Sri Lanka must demonstrate consistent implementation of international conventions to maintain these benefits. The EU regularly monitors compliance, and in October 2024, Sri Lanka reaffirmed its commitment to strengthening trade ties with the EU, particularly emphasizing the role of GSP+ in boosting exports.
Next week, an EU delegation will visit Sri Lanka to evaluate the country’s adherence to GSP+ requirements. This visit underscores the importance of compliance with international standards to retain preferential trade access, which is crucial for Sri Lanka’s export-driven economy.
A recent report by the Institute of Policy Studies (IPS), titled “Who Stands to Lose? The Effects of GSP+ Withdrawal on Sri Lanka’s Exports and Labour Force,” highlights the potential economic repercussions if Sri Lanka loses GSP+ benefits. The report underscores the significance of the scheme for the country’s export sector and labor market, reinforcing the necessity of continued compliance with EU requirements.
GSP+ serves as a special incentive program promoting sustainable development and good governance. It grants zero tariffs to economically vulnerable low- and lower-middle-income countries that implement 27 international conventions covering labor rights, human rights, environmental protection, and governance. Compliance with these conventions, particularly those related to environmental sustainability and governance, will be mandatory under the revised framework. Furthermore, the EU has established a mechanism for the swift withdrawal of GSP+ benefits if a country fails to meet its obligations.
Under the new system, beneficiary countries will be given a two-year transition period to ratify newly added conventions. Additionally, they must submit detailed implementation plans outlining their strategies for complying with all required conventions. The EU has already made it clear that Sri Lanka’s current form of the PTA is unacceptable and requires reform.
The revised GSP+ framework will place greater emphasis on good governance, including anti-corruption measures such as stricter laws to combat bribery, the implementation of transparent public procurement procedures, and enhanced mechanisms to prevent corruption.
Sri Lanka previously lost its GSP+ status but regained it in 2017 after pledging to repeal the PTA. The country’s trade volume with the EU currently stands at USD 3.2 billion, with a trade balance favoring Sri Lanka. Given the importance of GSP+ in facilitating trade, ensuring compliance with EU requirements is vital for sustaining economic growth and maintaining market access.
March 20, Colombo (LNW): A groundbreaking Sinhala-language black comedy film, Nelum Kuluna (Tentigo), has carved a unique space in international cinema, garnering widespread acclaim and spawning multiple remakes across different languages.
Directed by Ilango Ram and produced by Hiranya Perera under Silent Frames Productions, the film’s bold and satirical take on societal norms has resonated with audiences beyond Sri Lanka’s borders.
What sets Tentigo apart is its unprecedented journey into international remakes. It has become the first Sri Lankan film to be adapted into several languages, including Spanish, Italian, English, Hindi, Telugu, and Malayalam, with French and Belgian versions reportedly in development.
In a testament to its cultural adaptability, Ilango Ram himself directed the Tamil remake, Perusu (2025), which has also been adapted into Pedha in Telugu.
The film’s success has not been limited to commercial remakes. It has received significant recognition on the global festival circuit, securing the Special Jury Award at the prestigious Tallinn Black Nights Film Festival in 2023.
It has also been showcased at the Glasgow Film Festival and Mostra in 2024, further cementing its reputation as a standout piece of cinema. Additionally, Tentigo was selected for the International Competition: Fiction category at the 2nd Eikhoigi Imphal International Film Festival in 2025.
At the heart of Tentigo lies an audacious and darkly comic premise. The story revolves around a fallen middle-class family struggling to arrange their father’s funeral, only to be faced with a bizarre predicament—the deceased patriarch’s body presents an unsettling anatomical issue!
The film’s original Sinhala title, Nelum Kuluna (Lotus Tower), is an overt reference to both Sri Lanka’s tallest structure and the uncomfortable reality confronting the family, serving as a sharp critique of patriarchal taboos and societal hypocrisy.
Speaking on the challenges of adapting Tentigo for Tamil audiences, Ilango Ram emphasised the importance of cultural specificity:
“I always focus on the setting in my films—how people interact, their customs, and their festivals. Tentigo captures the essence of local Sri Lankan life, and with Perusu, we ensured the humour and themes were attuned to Tamil sensibilities. In India, each state has its own distinct cultural fabric, and we worked hard to infuse a comedic tone that would resonate with Tamil viewers.”
The Tamil adaptation, Perusu, features well-known stars Vaibhav and Niharika NM, among others, adding further weight to the film’s expanding appeal.
With its continued success across film festivals and international markets, Tentigo stands as a milestone in Sri Lankan cinema, proving that provocative storytelling transcends cultural boundaries.
