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Business Confidence Slips in June despite Sales Optimism in Sri Lanka

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By: Staff Writer

July 21, Colombo (LNW): After a brief resurgence in optimism during May, business confidence in Sri Lanka has taken a sharp turn in June, reflecting renewed concerns over the country’s economic trajectory, according to the latest edition of LMD magazine. The July issue reveals that the fragile recovery in business sentiment has already begun to unravel, with broader concerns overshadowing earlier hopes of sustained economic improvement.

The findings come from the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey conducted in early June. The survey shows a significant 20 percentage point drop in the number of business leaders who believe the economy will improve over the next 12 months — falling from 76% in May to 56% in June. At the same time, 37% of respondents expect the economy to remain unchanged, up from 17% in the previous month, while only 7% foresee a downturn — unchanged from May.

Despite this downturn in overall confidence, there is a silver lining. The report notes a rebound in sales expectations, with 83% of sales professionals predicting an improvement in volumes over the coming year — a nine-percentage-point increase compared to May. This marks the first uptick in three months, suggesting a potential shift in business performance, if not in confidence about the macroeconomic environment.

Additionally, 16% of respondents expect sales to remain steady — down from 24% in May — while only a small fraction predict a decline. Notably, 69% of those surveyed reported an increase in sales volumes in June compared to the previous month, reflecting a modest but meaningful rise from 66% in May.

This divergence — rising sales sentiment amid falling economic optimism — highlights the complex and often contradictory nature of Sri Lanka’s current business climate. While some companies, particularly in the consumer and services sectors, are seeing improved activity, concerns remain about long-term stability, investment inflows, policy direction, and inflation.

Business leaders have repeatedly called for more consistent economic reforms, greater fiscal discipline, and transparent policy-making to support sustainable recovery. The private sector remains cautious, grappling with high interest rates, currency volatility, and fragile consumer demand despite the IMF-backed stabilization program that has helped improve macro indicators such as foreign reserves and inflation.

Meanwhile, LMD’s July edition also features its annual ranking of Sri Lanka’s Best Workplaces for 2025 — a timely focus on human capital and organizational culture at a time when employee engagement and resilience are critical to navigating uncertainty.

More details and the full cover story can be accessed via LMD’s official website at www.LMD.lk.

Deadline looms for final appeals under Aswesuma Welfare Scheme

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July 21, Colombo (LNW): Today (21) will be the deadline for individuals to submit appeals under the second phase of the Aswesuma Welfare Benefits Programme, a key social support initiative aimed at providing assistance to vulnerable households across the country.

Officials from the Welfare Benefits Board have confirmed that close to 30,000 appeals have already been lodged as part of this latest round, reflecting a strong public response and continued demand for welfare assistance.

The programme, which targets low-income families and those facing economic hardship, offers financial support intended to ease the burden of rising living costs and ensure a basic standard of living.

Those who believe they have been unfairly excluded from the scheme — or who need to correct or update their personal details — are being urged to act immediately, as today is the final deadline for submissions. After this date, no new appeals will be accepted for this phase of the initiative.

Appeals must be filed through the respective Divisional Secretariat offices, which serve as the official intake points for documentation and queries. Once submitted, the appeals are forwarded to the Welfare Benefits Board for further assessment and verification.

Applicants are encouraged to double-check supporting documents and ensure they meet all eligibility requirements outlined in the programme’s guidelines.

Matara’s Arts Festival returns in December as city’s cultural revival gains momentum

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July 21, Colombo (LNW): The southern coastal city of Matara is set to come alive once again with colour, rhythm and creativity as the Matara Festival for the Arts (MFA) makes its much-anticipated return this December.

The festival will take place from December 12 to 15, 2025, bringing together a dynamic blend of visual art, music, performance and community engagement.

The announcement was made via social media by Minister of Industry and Entrepreneurship Development Sunil Handunneththi, who affirmed the government’s continued support for the festival and its broader vision of regional cultural regeneration.

Originally launched in early 2024, the MFA has quickly become a key cultural event in Sri Lanka’s southern province, anchoring itself not only as a celebration of creativity but also as a catalyst for economic renewal and heritage-based tourism.

The festival forms part of a larger strategy to reimagine and reinvigorate Matara Fort and the surrounding city as a hub of cultural activity, entrepreneurship, and local pride.

Last year’s edition saw contributions from over 100 artists, musicians, and creative professionals — including established names, emerging talent, and members of the Sri Lankan diaspora. It also featured an international dimension, with several overseas collaborators and visitors.

Significantly, nearly 50 of the festival’s contributors were residents of Matara, underscoring the event’s emphasis on empowering the local creative community. The 2024 festival drew more than 4,000 attendees, including tourists, local residents, and cultural practitioners.

Building on that momentum, MFA 2025 will retain its founding theme of “Culture, Community and Collaboration.” This year’s programme will emphasise collaborative projects, including new mentorships and peer networks amongst artists.

Local participants from last year’s training programmes will step into leadership or peer roles, whilst a fresh cohort of Matara community members will also be engaged and supported in the festival’s activities.

Music will again play a central role, with evening events showcasing genres ranging from jazz and fusion to traditional dance. Workshops, artist talks and panel discussions will run throughout the festival, providing space for critical dialogue, learning and networking.

At the helm of the event will be Professor Jagath Weerasinghe — a leading figure in Sri Lankan contemporary art and archaeology — returning as the artistic curator. He will work alongside co-founders and directors Chanchala Samaraweera Gunewardena and Jayanthi Samaraweera Gunewardena, both of whom played key roles in launching the festival and are also known for leading the late Mangala Samaraweera’s Freedom Hub initiative.

This year’s announcement follows a recent Cabinet decision in June 2025 to establish a formal committee tasked with drafting the Matara Heritage and Development Act — a landmark step aimed at guiding the structured restoration and development of Matara Fort. The proposed legislation is expected to provide long-term frameworks for conservation, urban renewal, and cultural investment.

The 2024 MFA also featured the “Invest in Matara” conversation series, which sparked new waves of interest from investors and stakeholders across the tourism, arts and development sectors. Organisers hope that this year’s edition will deepen that engagement and position Matara as a thriving centre for cultural entrepreneurship and regional innovation.

Anunayake of Asgiri Chapter Most Ven. Anamaduwe Dhammadassi Thero passes away

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July 21, Colombo (LNW): Most Venerable Anamaduwe Dhammadassi Thero, the Anunayake (Deputy Chief Prelate) of the historic Asgiri Chapter, passed away at the age of 67.

The Thero had been receiving medical care at a private hospital after suffering a heart attack.

His condition had reportedly remained critical in the days leading up to his demise, which occurred last night (20).

Persistent corruption in Sri Lanka’s Public Sector triggers renewed crackdown

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July 21, Colombo (LNW): Corruption within Sri Lanka’s public service continues to cast a long shadow over the nation’s governance, prompting intensified efforts by the country’s anti-graft watchdog, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

The agency has stepped up its operations in 2025, reflecting a mounting urgency to restore public trust in state institutions.

Between January and July this year, CIABOC received a staggering 2,138 complaints relating to bribery, abuse of office, and procedural misconduct. In response, the Commission carried out 44 raids and apprehended 31 public servants suspected of involvement in corrupt activities.

Those detained span a wide range of government departments and services — including headteachers, police personnel, labour department representatives, and staff from the Department of Motor Traffic (DMT).

Many of the arrests stemmed from allegations of officials accepting illicit payments, exploiting their positions for personal gain, and breaching established administrative protocols.

In one of the most high-profile cases to date, CIABOC last week detained three individuals linked to an unlawful vehicle registration scheme within the DMT. Amongst those arrested was a former Assistant Commissioner who now holds the post of Senior Assistant Secretary at the Ministry of Lands.

Also implicated were a Development Assistant and an Investigation Officer, all believed to have played roles in bypassing regulatory checks to register a vehicle improperly.

This case follows a separate raid in May, during which authorities arrested another trio of DMT officials — including a Deputy Commissioner. That operation led to the discovery and seizure of over Rs. 4.1 million in cash, believed to be proceeds of unreported or illegal transactions.

CIABOC has reiterated that these arrests are part of a broader campaign to root out endemic corruption within the public sector. Officials assert that no rank or office is beyond scrutiny, and investigations will proceed without favour under the current administration.

The Commission continues to call on civil servants to uphold ethical standards and has warned that increased surveillance and enforcement will remain a cornerstone of government policy. In parallel, the public is encouraged to report any suspected instances of corruption, with CIABOC pledging that every complaint will be treated with due seriousness and confidentiality.

Showery trend continues across island: Fairly heavy falls about 75 mm expected (Jul 21)

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July 21, Colombo (LNW): Showers will occur at times in the Western, Sabaragamuwa and Central provinces and in Galle and Matara districts, with fairly heavy falls about 75 mm likely at some places in the Sabaragamuwa province and in Nuwara-Eliya, Kandy, Galle, Matara and Kalutara districts, the Department of Meteorology said in its daily weather forecast today (21).

Several spells of showers may occur in the North-western and Uva provinces and in Hambantota district.

Strong winds of about 50 kmph can be expected at times over Western slopes of the central hills and in Western, Sabaragamuwa, Southern, North-western and North-central provinces.

Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.

The general public is kindly requested to take adequate precautions to minimise damages caused by strong winds.

Marine Weather:

Condition of Rain:
Showers will occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.

Winds:
Winds will be Westerly to South-westerly and wind speed will be (35-45) kmph.

Wind speed can increase up to (60-70) kmph at times in the sea areas off the coast extending from Chilaw to Mannar via Puttalam and from Galle to Pottuvil via Hambantota.

Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Chilaw to Galle via Colombo and from Manna to Vakarai via Kankasanthurai and Trincomalee.

State of Sea:
The sea areas off the coast extending from Chilaw to Mannar via Puttalam and from Galle to Pottuvil via Hambantota will be rough or very rough at times. Naval and fishing communities are advised not to venture into these sea areas for next 24 hours.

The sea areas off the coast extending Chilaw to Galle via Colombo and from Manna to Vakarai via Kankasanthurai and Trincomalee may be rough at times.

The wave height (about 2.5 – 3.0 m) may increase in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota. Therefore, there is a possibility that nearshore sea areas extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota may experience surges due to sea waves.

Naval and fishing communities are requested to be attentive to future forecasts issued by the Department of Meteorology in this regard.

Viraj Dayaratne appointed to lead Criminal Division of AG’s Dept

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July 20, Colombo (LNW): Senior legal figure Viraj Dayaratne has been named as the new head of the Criminal Division within the Attorney General’s Department, a key position in Sri Lanka’s legal system tasked with overseeing the prosecution of criminal cases across the country.

This appointment comes in the wake of Justice Rohantha Abeysooriya’s elevation to the judiciary as President of the Court of Appeal, creating a vacancy at the helm of the department’s criminal arm. Abeysooriya’s promotion reflects a broader reshuffling within the upper echelons of the legal and judicial services.

Dayaratne brings with him a wealth of experience, having previously held the role of Acting Attorney General, during which time he handled several high-profile legal matters and gained recognition for his measured approach and legal acumen.

His return to a leadership role within the department signals a continuity of experience and a commitment to maintaining prosecutorial standards amid evolving legal challenges.

Severe marine weather alert issued as high winds and dangerous seas threaten coastal regions

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July 20, Colombo (LNW): The Meteorological Department has issued a high-level alert for coastal regions stretching from Puttalam to Pottuvil, encompassing Colombo, Galle, and Hambantota, warning of hazardous sea conditions and powerful winds over the next 24 hours.

According to the advisory, gale-force winds gusting between 60 and 70 kilometres per hour are expected to sweep across these maritime zones, significantly disrupting sea conditions. Swells in the affected areas may rise between 2.5 and 3.0 metres, increasing the risk of coastal inundation and making navigation perilous for small and medium-sized vessels.

The Department has raised the warning level to ‘Red’, its most serious classification, indicating an urgent threat to marine safety. Inshore surges are also likely along the southern and western coasts, with rough to very rough seas predicted across the region.

Mariners, including fishing vessels and commercial craft, are being firmly advised to avoid entering the sea in these areas. This precaution applies particularly to those operating from ports and harbours situated along the vulnerable stretch between Puttalam and Pottuvil. The warning is expected to remain in effect for at least the next day, though the situation is being closely monitored.

In addition to the core warning zone, those engaged in seafaring activities from Puttalam towards Trincomalee via Mannar and Kankesanthurai are also urged to exercise heightened caution.

Japan-Backed Airport Hotel Set to Transform Transit Tourism in Sri Lanka

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By: Staff Writer

July 20, Colombo (LNW): A landmark Japanese-funded transit hotel project at Bandaranaike International Airport is taking shape, promising to boost Sri Lanka’s position as a regional air travel hub. The USD 30 million Colombo International Airport Hotel, a 153-room four-star facility, is spearheaded by Dr. Ruwan Perera in collaboration with Japanese investor group “Little Japan.”

The hotel is set to open by the end of 2025 and will be Sri Lanka’s first purpose-built transit hotel, aligning with international hospitality standards. Positioned within the airport premises, it aims to offer high-end accommodation and services to transit passengers, enhancing travel convenience while promoting economic and cultural links between Japan and Sri Lanka.

Japanese Ambassador Akio Isomata, who recently toured the construction site, underscored the project’s importance as more than just a hospitality initiative. He described it as a symbolic bridge strengthening people-to-people ties between the two nations. “This hotel represents our shared vision for mutual growth through tourism, business, and cultural exchange,” he stated.

Dr. Perera, a Sri Lankan academic and former Sony executive with global patents and multiple accolades, plays a key role in driving Japanese-Sri Lankan collaboration. Having studied in Japan and the United States, Perera brings international experience and national commitment to the venture. His initiative, Little Japan, has so far channelled over USD 40 million in Japanese investment into Sri Lanka, focusing on both infrastructure and community development.

The airport hotel project stands out as his flagship effort, reflecting his broader vision of integrating Japanese standards of quality and hospitality into Sri Lankan tourism. “This hotel is designed to uplift our hospitality sector and support the transformation of Colombo International Airport into a regional hub,” Perera said during the ambassador’s visit.

The Japanese investor delegation expressed strong support for the venture, noting its alignment with Japan’s long-standing focus on sustainable infrastructure and international engagement in Sri Lanka. The hotel is expected to be a key driver for tourism development, attracting more travellers to use Colombo as a transit point while also showcasing Japanese architectural design and service excellence.

As construction progresses, the project is increasingly seen as a milestone in bilateral cooperation—setting a precedent for future Japanese investments and reinforcing Japan’s role in Sri Lanka’s economic resurgence. With its opening slated for late 2025, the Colombo International Airport Hotel is poised to become a defining feature of the country’s travel and tourism landscape, and a lasting symbol of Sri Lanka–Japan friendship.

Sri Lanka Revives Digital Driving Licence Initiative with Global Recognition in Sight

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By: Staff Writer

July 20, Colombo (LNW): Sri Lanka’s long-standing efforts to digitise its driving licence system have gained renewed momentum, as the Department of Motor Traffic (DMT) takes concrete steps to launch a new internationally recognised digital driving licence. The initiative, previously stalled due to legal, technical, and institutional challenges, is now being restructured with a clear roadmap and the support of key government stakeholders.

Motor Traffic Commissioner General Kamal Amarasiri announced that discussions are ongoing to sign the Vienna Convention on Road Traffic, a critical step toward making the proposed digital driving licence valid in nearly 100 foreign countries. The Vienna Convention, to which Sri Lanka is not yet a signatory, facilitates mutual recognition of driving licences among member states, thereby granting Sri Lankan licence holders the right to drive abroad without additional permits or conversions.

Amarasiri revealed that the DMT, in collaboration with the Ministry of Foreign Affairs, Ministry of Transport, and other relevant bodies, has already held multiple rounds of consultations. A comprehensive action plan developed by the Ministry of Transport has now been submitted to the DMT, marking the transition from preliminary discussions to implementation.

The proposed digital licence is expected to align with global standards in terms of format, security features, and data accessibility. It will replace the current plastic card system with a digitally stored and verifiable licence, possibly integrated into a broader e-governance platform. This transition aims not only to modernise domestic traffic management but also to facilitate smoother travel and relocation experiences for Sri Lankan citizens working or residing abroad.

Past attempts to introduce a digital driving licence faced delays, largely due to gaps in legal frameworks, insufficient technological infrastructure, and lack of inter-agency coordination. However, the current initiative appears to be taking a more structured and legally grounded approach. The Commissioner General emphasised that all technical, legal, and procedural prerequisites—including system readiness, data protection compliance, and public communication strategies—will be addressed within a short timeframe.

The next phase involves obtaining approval from the Cabinet and Parliament, followed by endorsements from the Attorney General’s Department, the Ministry of Foreign Affairs, and the Legal Draftsman’s Department. Only then can Sri Lanka proceed with signing the Vienna Convention and begin issuing internationally accepted digital driving licences.

While the timeline remains tentative, authorities are optimistic that the digital driving licence will be a transformative step toward modernising public services and enhancing global mobility for Sri Lankan drivers. The initiative reflects the government’s broader digitalisation agenda, aimed at improving efficiency, transparency, and international integration.