By:Staff Writer

September 15, Colombo (LNW): A tense row between the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) has crystallised into a policy fight with concrete fiscal consequences: efforts by the CEB to push competitive international bidding for thermal fuel procurement have been resisted by CPC, while recent CPC-awarded contracts show the state-owned supplier remains the gatekeeper of large fuel deals. 

CEB engineers argue competitive bids would discipline prices, secure bulk discounts and protect consumers from arbitrary mark-ups.

Their confidential letter to senior energy and finance officials warns that CPC’s control over pipelines, port access and bulk supply effectively lets it veto any move that would let the CEB buy directly from international traders or alternative suppliers. 

The engineers claim recent internal pricing moves including reported increases in naphtha and heavy fuel oil (HFO)  are being passed straight to electricity tariffs. 

At the same time, public procurement records and media reporting show CPC continuing to run large, centrally awarded supply contracts after inviting bids from its pool of registered suppliers. 

For example, the Cabinet approved a contract in May 2025 awarding five shipments of diesel (0.05% MS) to Singapore’s Trafigura Pte Ltd for deliveries from June to November 2025; the CPC called for bids from its registered supplier list and seven bidders submitted offers. 

Earlier procurement rounds illustrate the limited, tightly-managed market. The state awarded long-term crude shipments to Vitol Asia (2.1 million barrels, Murban crude) following a CPC-led tender that attracted five bids.

 And in August 2025 the Cabinet approved a 1.5 million-barrel Octane 92 supply contract to Aditya Birla Global Trading (Singapore) after the CPC received eight bids. These awards confirm that large purchases are routed through CPC processes not direct open international tendering by major buyers such as the CEB. 

CPC’s procurement rules themselves reserve many large purchases for “registered suppliers,” and its procurement documents routinely restrict bidding eligibility to those on the register a mechanism that concentrates access and can limit price competition. CPC tender documents and CPSTL registration guidance filed in 2025 make clear that quotations are normally called from that registered list. 

CPC management insists it is not blocking bidding per se but says that if the CEB wants to procure externally, CPC should be released from supply obligations a position it frames as a risk-allocation, not obstruction. 

Critics counter that this is a circular logic: CPC’s control of infrastructure plus exclusive procurement channels gives it leverage to protect margins at the expense of tariff-paying consumers. 

The clash is more than a bureaucratic spat. With thermal fuel costs accounting for a material share of generation expense, allowing true competitive bidding open to global traders on transparent terms and backed by independent logistics access could reduce generation costs and blunt tariff pressure. 

Whether policymakers break the bottleneck around CPC’s procurement architecture will determine if Sri Lanka achieves that saving, or if monopoly dynamics keep electricity prices elevated.

By:Staff Writer

September 15, Colombo (LNW): Sri Lanka’s tourism industry continues to gain momentum under the new National People’s Power (NPP) government, with fresh data from the Sri Lanka Tourism Development Authority (SLTDA) showing 52,246 tourist arrivals in the first two weeks of September 2025.

India remains the country’s largest source market, contributing 14,300 visitors so far this month, or 27.4% of arrivals. The United Kingdom followed with 4,092 tourists, while Germany (3,488), China (2,796), and Australia (2,603) also ranked among the top five.

With these figures, cumulative arrivals for 2025 have reached 1,618,769 — a significant rebound compared to the pandemic-era slump that crippled the sector. India leads overall arrivals this year with 339,895 visitors, followed by the UK (155,233) and Russia (119,132).

Tourism, which accounts for nearly 5% of Sri Lanka’s GDP, has been identified as a critical driver of foreign exchange earnings by the NPP administration. Since assuming office, the government has prioritized tourism revival through policy measures aimed at diversifying source markets, enhancing infrastructure, and improving safety and service standards.

The NPP has also accelerated visa facilitation reforms, including the planned introduction of a digital visa system to ease entry for tourists from Europe and East Asia. Discussions are underway to expand airline connectivity, particularly targeting China and the Middle East, to tap into high-spending segments.

Industry stakeholders have welcomed the renewed focus, noting that improved political stability and economic reforms have boosted confidence among foreign travelers and tour operators. Hoteliers in coastal regions, as well as cultural and eco-tourism operators, report stronger booking trends heading into the upcoming winter season, traditionally the peak period for arrivals.

Despite the recovery, the sector faces hurdles. Rising competition from regional destinations such as Thailand and Maldives, concerns over service quality, and inadequate infrastructure in key tourist hotspots remain pressing challenges. Industry experts stress that Sri Lanka must modernize its tourism offerings to retain its competitive edge.

The NPP government has pledged to address these issues by developing sustainable tourism projects and promoting lesser-known destinations beyond Colombo, Kandy, and Galle. Plans to highlight agro-tourism, wellness retreats, and community-based eco-lodges are already in motion.

By:Staff Writer

September 15, Colombo (LNW): Sri Lanka and the Philippines have signaled their intent to push relations into a new phase, with trade, investment, and labour mobility at the heart of fresh discussions. The two nations concluded the third round of political consultations in Colombo last week, setting the stage for deeper engagement ahead of the 65th anniversary of their diplomatic ties in 2026.

At present, bilateral trade remains modest but fast-growing. In 2024, Sri Lanka’s exports to the Philippines reached around US$16.5 million, while imports stood at nearly US$57 million, resulting in a sizable trade deficit. Yet both sides recorded significant year-on-year growth—Sri Lanka’s exports rose by 14.4%, while imports from the Philippines surged 146.8%—suggesting an untapped but rapidly expanding partnership.

Foreign Secretary Aruni Ranaraja urged Manila to consider reopening its resident mission in Colombo, while also highlighting Sri Lanka’s interest in working with the Philippines as it prepares to assume the ASEAN chairmanship in 2026. The Philippines’ growing influence in Southeast Asia, coupled with Sri Lanka’s strategic location in the Indian Ocean, gives both sides an incentive to strengthen commercial and political ties.

Agriculture and plantations emerged as top priorities. Colombo hopes to benefit from Philippine expertise in technology transfer, irrigation, food security, and rice research, particularly to enhance its coconut and plantation industries. Fisheries and aquaculture were also identified for deeper engagement, with Sri Lanka keen to learn from Manila’s advanced milkfish breeding technology, which could be adapted to boost local aquaculture output.

Labour cooperation was another key theme. Sri Lanka recognized the Philippines’ global leadership in migration governance and pressed for the early finalization of a draft Memorandum of Understanding (MoU) on labour. The discussions underscored areas such as regulated recruitment, migrant welfare, and pre-departure training issues of critical importance to Sri Lanka’s large overseas workforce.

On trade facilitation, both nations agreed to foster institutional linkages between the Sri Lanka Export Development Board and the Philippines’ Center for International Trade Expositions and Missions (CITEM). Such cooperation could enable small and medium enterprises (SMEs) to access new markets through joint trade fairs, exhibitions, and e-commerce platforms.

Despite the momentum, challenges persist. The wide trade imbalance favors the Philippines, and Sri Lankan exporters still face barriers in awareness, logistics, and product diversification. Non-tariff barriers and regulatory alignment remain additional hurdles. Without sustained follow-through, MoUs risk becoming symbolic rather than transformative.



Yet opportunities abound. Sri Lanka could expand value-added exports in tea, coconut products, spices, and rubber, while drawing Filipino investment in food processing, cold chains, and logistics. Both countries could also explore joint ventures in ICT, tourism, and higher education. With the Philippines assuming ASEAN leadership, Colombo may find openings to integrate with regional supply chains and pursue broader Indo-Pacific trade linkages.

If the plans outlined in Colombo are fully implemented, by 2026 the two countries could see a doubling of trade volumes, more balanced exchanges, and strengthened cooperation in labour, agriculture, and aquaculture. The resumption of a Philippine diplomatic mission in Colombo would further cement this partnership.

For now, Sri Lanka and the Philippines are moving from goodwill to groundwork. The challenge is to turn promising dialogue into tangible results transforming a modest relationship into a robust economic bridge across the Indian and Pacific Oceans.

By:Staff Writer

September 15, Colombo (LNW):Sri Lanka is making decisive strides in building a skilled workforce of industrial energy managers, a cornerstone for cutting greenhouse gas emissions and driving energy efficiency in its industries. The spotlight fell on this effort at the Energy Management Systems (EnMS) Forum 2025, held on 29 August, where more than 200 industry leaders, government officials, and international representatives gathered to chart the next phase of Sri Lanka’s low-carbon industrial journey.

The forum was hosted by the EU-funded Accelerating Industries Climate Response in Sri Lanka (AICRSL) project, implemented by the United Nations Industrial Development Organisation (UNIDO). It marked three years of training and capacity building in EnMS, focusing on embedding energy management into long-term industrial practices.

Energy Minister Eng. Kumara Jayakody underscored the urgency of the initiative. “As Sri Lanka’s economy grows, its emission budget rises alongside it,” he warned. “Meeting climate goals requires widespread energy efficiency across the industrial sector. This programme is not only reducing emissions but also strengthening energy security and economic resilience.”

Since its launch in 2023, the project has trained more than 500 industry and government professionals, including over 100 women, equipping them with expertise in energy management, system optimisation, and sustainable operations. The training, aligned with ISO 50001 standards, provides participants with technical knowledge and tailored support to implement real-world energy savings.

The results are already tangible. Participating industries have collectively reduced 12,832 tons of CO₂ equivalent emissions and achieved an estimated 29 GWh in annual energy savings. Four industry case studies showcased at the forum demonstrated how companies are cutting costs, reducing carbon footprints, and even opening new export opportunities through enhanced energy performance.

Highlighting the international dimension, Dr. Johann Hesse, Head of Cooperation at the EU Delegation to Sri Lanka and Maldives, said: “By building the capacity of Sri Lankan industries to engage in energy efficiency, we are fostering strategic partnerships that go beyond borders. Sri Lanka is being equipped with the skills and technologies needed to position itself as a global leader in sustainability and resilience.”

The event also featured a certification ceremony for the latest batch of EnMS trainees, who join two previous cohorts to form a growing nationwide network of energy managers. UNIDO Representative Dr. Cristiano Pasini emphasized the importance of this network: “These professionals will sustain energy efficiency efforts long after the project ends.”

As the AICRSL project enters its final phase, focus is shifting from training to institutionalisation. The Sri Lanka Sustainable Energy Authority announced new plans to strengthen the policy and regulatory environment for energy management. Linking trained managers with the Sri Lanka Energy Managers Association (SLEMA) will ensure knowledge sharing, ongoing professional development, and long-term momentum.

The AICRSL project, worth Rs. 2.8 billion (€7.56 million), is designed to help Sri Lanka’s industrial sector cut greenhouse gas emissions by 7% by 2030. Beyond training, it supports policy reforms, measurement and verification of emissions, and increased investment in renewables and low-carbon technologies.

By aligning industrial efficiency with global climate goals, Sri Lanka is building not just a cadre of skilled professionals, but a resilient, low-carbon economy ready to compete on the global stage.

September 15, Colombo (LNW): Sri Lanka’s tourism sector is showing troubling signs, with revenue figures falling sharply in August despite a marked increase in tourist arrivals.

According to recently released figures, the country earned US$ 258.9 million in August 2025—a decline of 8.2 per cent compared to the same month last year.

This drop in earnings comes even as visitor numbers grew significantly. A total of 198,235 tourists arrived in August, up more than 20 per cent from August 2024, when 164,609 visitors were recorded. India continued to lead as the top source market. Yet the rise in footfall has not translated into higher income, revealing a notable decline in average per-tourist spending.

August’s earnings also showed a month-on-month decrease of 18.7 per cent from July’s US$ 318.5 million, raising further questions about the quality and yield of current tourism traffic. This downturn, some analysts warn, could reflect issues ranging from inadequate marketing to poor visitor engagement, sub-par pricing strategies, or an over-reliance on budget-conscious tourists.

Between January and August, Sri Lanka welcomed a total of 1,566,523 visitors, representing a 15 per cent increase from the same period in 2024. Cumulative earnings for the eight-month period reached US$ 2.29 billion—up by 5.7 per cent year-on-year.

Whilst this points to continued recovery following the pandemic and subsequent economic challenges, the slowing revenue growth suggests deeper structural concerns within the sector.

Comparisons to the tourism high point of 2018—when Sri Lanka drew 2.33 million visitors and earned US$ 4.38 billion—reveal just how far the industry remains from full recovery. With only four months left in the year, the government’s ambitious US$ 5 billion earnings target is beginning to appear increasingly unrealistic. Meeting that goal would now require an average of nearly US$ 677.5 million per month—a figure the current trend does not support.

Industry experts have voiced growing frustration over the delay in launching Sri Lanka’s long-promised destination marketing campaign. The proposed rebranding effort, meant to reposition the country on the global tourism map, has faced repeated bureaucratic holdups and now looks unlikely to materialise before the end of next year.

Stakeholders argue that without a strategic push to attract high-value travellers, promote diversified experiences, and reposition the island as a premium destination, the country risks falling into a volume-over-value trap. While footfall may continue to grow, earnings may not follow—putting the sustainability of the industry in jeopardy.