July 15, Colombo (LNW): A tragic road accident claimed the lives of two individuals when a car travelling along the Mahiyangana–Badulla main route veered off course and overturned into the Mahaweli Viyana Canal near the 17th-mile post at Mapakadawewa.
The incident occurred during the early hours of the morning, prompting an immediate and coordinated rescue effort by officers from the Mapakadawewa Police Training Academy, Mahiyangana Police, and concerned residents in the area. Despite the rapid response, both occupants of the vehicle were found trapped inside the submerged car.
Rescuers managed to pull the victims from the water and transfer them urgently to the Mahiyangana Base Hospital. However, hospital staff confirmed that the individuals had succumbed to their injuries by the time they arrived.
Authorities have launched an investigation to determine the exact cause of the accident, although initial reports suggest that loss of control may have contributed to the vehicle careening into the canal. The Mahiyangana Police are working with forensic experts and traffic investigators to gather further details.
July 15, Colombo (LNW): An independent four-member committee has been established to investigate allegations of financial mismanagement and administrative lapses at Sabaragamuwa University, following directives issued by the Committee on Public Enterprises (CoPE).
The Ministry of Education, Higher Education, and Vocational Training announced the formation of the inquiry team, which is expected to present its findings within two months.
The committee, convened by Secretary to the Ministry, Nalaka Kaluwawa, reflects the government’s response to mounting concerns over governance issues at the institution. These concerns were initially flagged during CoPE sessions, which called for a formal inquiry into how public funds and university resources were being managed.
Heading the investigation is retired Supreme Court Justice Vijith K. Malalgoda, whose legal expertise is expected to lend considerable weight to the inquiry process. He is joined by Professor Gamini Senanayake, a former Vice-Chancellor of the University of Ruhuna; W.M.C. Bandara, previously an Additional Secretary to the Ministry of State Resources and Enterprise Development; and Hasanthi Pathirana, Assistant Internal Auditor of the University Grants Commission, who will serve as the committee’s convener.
The scope of the investigation includes examining procurement processes, financial reporting systems, staff appointments, and other administrative procedures that may have deviated from standard regulatory frameworks.
The committee is also expected to recommend reforms to improve governance and transparency at the university level.
July 15, Colombo (LNW): A government-funded initiative aimed at modernising Sri Lanka’s railway telecommunication infrastructure has failed to yield its intended benefits, according to a recent report by the National Audit Office.
The audit reveals a series of operational and managerial lapses that have rendered the system ineffective, despite the project’s official completion nearly five years ago.
Originally launched to improve coordination and safety across the island’s railway network, the project was finalised in November 2020. However, the audit findings suggest that the upgraded system has not been integrated into daily operations in any meaningful way.
The report highlights a lack of cooperation from railway personnel, both at individual and departmental levels, in embracing the modernised system.
One of the most significant issues raised in the audit is the Department of Railways’ failure to ensure proper maintenance through the private telecom contractor, as was contractually mandated. This, compounded by the absence of a structured oversight mechanism, has resulted in critical components of the system falling into disuse or disrepair.
In an effort to promote the system’s usage, a circular was issued requiring railway staff to use the new communication equipment for official duties. However, the Audit Office has found widespread non-compliance among officers, some of whom have continued using alternative or outdated methods, undermining the investment made in new technology.
The National Audit Office has recommended that disciplinary measures be taken against officials who disregarded the circular and neglected their responsibilities. It further called for a nationwide strategy to expand signal coverage and build the necessary infrastructure to support uninterrupted service delivery, suggesting that without such improvements, the long-term goals of the modernisation project may never be realised.
July 15, Colombo (LNW): Sri Lanka has officially concluded a key bilateral agreement with the Saudi Fund for Development (SFD), marking a notable advancement in the nation’s broader strategy to restructure its external debt amidst ongoing fiscal recovery efforts.
The pact, formalised on July 14, 2025, involves the amendment and restructuring of existing loan arrangements, totalling more than 516 million Saudi Riyals.
The agreement was signed by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning, and Economic Development, and Sultan Abdulrahman A. Almarshad, Chief Executive Officer of the SFD, during a bilateral meeting that underscored the strong diplomatic and economic ties between the two nations.
This development comes at a time when Sri Lanka continues to navigate the complexities of its debt stabilisation process following the 2022 debt default. Despite the suspension of international debt repayments during the country’s financial crisis, Saudi Arabia maintained its development support through the SFD, allowing key infrastructure and public service projects to proceed without interruption.
The restructured loans were extended on highly favourable terms, which Sri Lankan authorities say will ease pressure on the country’s repayment obligations over the long term.
According to the Ministry of Finance, the continued financial cooperation from Riyadh serves not only as a vote of confidence in Sri Lanka’s reform agenda but also as a crucial instrument in advancing national development goals during a delicate recovery phase.
The restructured financing arrangements are expected to free up resources for vital sectors including healthcare, education, and transport, while also bolstering investor confidence in the country’s ongoing fiscal reforms.
Officials noted that the Kingdom of Saudi Arabia has been a longstanding development partner to Sri Lanka, with a portfolio of support ranging from energy and infrastructure to rural development and humanitarian relief.
July 15, Colombo (LNW): Showers will occur at times in the Sabaragamuwa province and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (15).
Several spells of showers may occur in the Western and North-western province.
Showers or thundershowers may occur at a few places in the Uva and Northern provinces and in Ampara and Batticaloa districts during the afternoon or night.
Strong winds of about (40-50) kmph can be expected at times over Western slopes of the central hills and in Western, Sabaragamuwa, Southern, North-western and North-central provinces.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain: Showers will occur at several places in the sea areas off the coast extending from Colombo to Matara via Galle.
Winds: Winds will be Westerly to South-westerly and wind speed will be (30-40) kmph.
Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo Galle and Hambantota.
Wind speed can increase up to (45-50) kmph at times in the sea areas off the coast extending from Puttalam to Vakarai via Mannar, Kankasanthurai and Trincomalee.
State of Sea: The sea areas off the coast extending from Puttalam to Pottuvil via Colombo Galle and Hambantota will be rough or very rough at times.
The sea areas off the coast extending from Puttalam to Vakarai via Mannar, Kankasanthurai and Trincomalee may be fairly 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 vigilant in this regard.
As President Anura Kumara Dissanayake’s administration faces mounting criticism over its economic policies, Sarvajana Balaya leader Dilith Jayaweera has emerged as an unexpected voice of opposition, challenging what he calls the government’s “excessive taxation” while other opposition leaders remain preoccupied with political maneuvering.
The member of parliament, who has carved out a distinct position in Sri Lanka’s fractured politics, delivered a scathing assessment of the current administration’s approach to economic recovery during yesterday’s press conference. His critique centers on what he sees as a troubling continuity between the current government and its predecessor.
“President Dissanayake is just following the policies of Ranil Wickremesinghe,” Jayaweera declared, drawing parallels between the current administration’s tax strategy and that of the former president. “The excessive taxation is crippling our entrepreneurs.”
The businessman-turned-politician has been particularly vocal about the government’s digital tax initiative, which he has opposed since its inception. Jayaweera characterizes the levy as “a retaliatory tax against the US,” reflecting broader concerns about the measure’s impact on Sri Lanka’s relationship with international partners and its domestic technology sector.
While traditional opposition parties have struggled to present a unified front against the government, often becoming mired in internal disputes and leadership battles, Jayaweera has sought to position himself as a pragmatic alternative. His focus on economic policy rather than political theater has begun to resonate with segments of the business community and middle-class voters who feel underrepresented in the current political discourse.
Sources close to the Sarvajana Balaya leader indicate that he plans to intensify his campaign against what he views as the government’s misguided fiscal approach. These individuals, speaking on condition of anonymity, suggest that Jayaweera is preparing to mount a sustained challenge to the administration’s taxation policies, arguing that the government has failed to articulate a clear pathway to economic recovery.
The criticism comes at a sensitive time for the Dissanayake administration, which inherited a country still grappling with the aftermath of its worst economic crisis in decades. The government’s tax policies, defended by officials as necessary for revenue generation and fiscal stability, have faced pushback from various quarters, but Jayaweera’s systematic opposition has given these concerns a prominent political voice.
His approach contrasts sharply with that of other opposition figures, who have often focused on broader political attacks rather than specific policy alternatives. This strategic positioning has allowed Jayaweera to cultivate an image as a serious critic focused on substantive economic issues rather than partisan politics.
The digital tax controversy, in particular, has provided Jayaweera with a platform to demonstrate his opposition credentials. His early and consistent criticism of the measure has established him as a credible voice on technology policy, an increasingly important area as Sri Lanka seeks to modernize its economy.
As the domestic politics continues to evolve, Jayaweera’s ability to maintain his focus on economic policy while other opposition leaders engage in what he characterizes as “power games” may prove to be a significant advantage in building public support for his alternative vision of Sri Lanka’s economic future.
The coming months will test whether his approach can translate into broader political influence or whether the established patterns of Sri Lankan politics will reassert themselves.
July 14, Colombo (LNW): Sri Lanka’s seafood export industry, a vital pillar of the nation’s economy, is facing mounting pressure following the United States’ recent decision to reduce import tariffs from 44% to 30%. While the move has been portrayed by some as a diplomatic win, industry leaders have strongly dismissed it as merely a temporary relief rather than a meaningful breakthrough.
The Seafood Exporters’ Association of Sri Lanka (SEASL), representing the country’s top seafood producers and exporters, warned that the revised tariff rate still places Sri Lanka at a severe disadvantage compared to regional competitors. “Even at 30%, we are worse off than exporters from Vietnam or the Philippines, who face tariffs of 20% or less,” SEASL said in a statement released Saturday.
Seafood exports to the United States account for more than 25% of Sri Lanka’s total seafood export volume, with some high-value products—like pasteurised crab meat—completely reliant on the US market. With such heavy dependence, the Association said the higher duties threaten the industry’s viability, including the incomes of thousands of small-scale fishermen and workers across the value chain.
The broader seafood sector in Sri Lanka earned over USD 280 million in 2024, with the European Union, Japan, the Middle East, and the United States being the top importers of Sri Lankan tuna, shrimp, crab, and lobster. Despite this potential, exporters say their global competitiveness is being choked by high domestic raw material costs and excessive local taxes, even before international tariffs are factored in.
“The 30% US tariff makes it even harder to compete,” a SEASL spokesperson explained. “We’re already dealing with cost burdens at home. Now, we’re being priced out of key international markets.”
In response, exporters are attempting to diversify into emerging markets such as the Middle East, Far East Asia, and other parts of Europe. But the Association cautioned that penetrating new markets is a time-intensive and costly process, requiring consistent policy support, infrastructure, and international trade facilitation.
SEASL is now urging the Sri Lankan Government to take immediate steps to address the crisis. The Association has proposed three urgent measures: renegotiating US tariffs to match regional standards by August 1, 2025; establishing a structured, transparent roadmap for trade talks with active private-sector involvement; and crafting a national export strategy focused on improving competitiveness and accelerating global market access.
“This isn’t a victory—it’s a warning,” SEASL concluded. “If we don’t act now, our exporters and fishing communities could lose everything while our competitors secure long-term market dominance.”
July 14, Colombo (LNW): Exporters urge Government to uphold transparency in freight tariffs to protect Sri Lanka’s global standing
Amid a backdrop of declining orders, rising production costs, and mounting international competition, Sri Lanka’s apparel industry—one of the nation’s largest foreign exchange earners—is facing yet another potential blow. The re-emergence of unofficial port fees threatens to further strain exporters already grappling with fragile post-pandemic recovery and ongoing global economic challenges.
The Sri Lanka Apparel Exporters’ Association (SLAEA), representing the country’s top industrial export sector, has sounded the alarm over recent moves by certain intermediaries to reintroduce Terminal Handling Charges (THC) that are not sanctioned under the Sri Lanka Ports Authority’s approved tariff structure.
SLAEA Chairperson Rajitha Jayasuriya expressed deep concern, stating that such actions risk undermining years of hard-won regulatory reforms aimed at ensuring fairness and transparency in the nation’s freight and logistics framework. She warned that these hidden charges could inflate logistics costs, damage exporters’ competitiveness, and threaten Sri Lanka’s credibility in international trade.
She recalled that the problem of unregulated shipping charges stretches back decades, with the Fair Trading Commission ruling as far back as 1997 against arbitrary fees imposed by shipping agents. Following persistent advocacy by the private sector, the Government implemented key reforms via Gazette No. 1842 in 2013 and Gazette No. 2041/10 in 2017. These mandated that freight costs be presented as a single, all-inclusive figure—ensuring accountability and protecting local businesses.
However, in 2022, the cancellation of these gazettes created fresh uncertainty. The matter escalated to the Supreme Court, which ruled that any such reversal required proper legislative procedures, including a two-thirds majority in Parliament. In response, President Ranil Wickremesinghe re-established regulatory stability through Gazette No. 2334/26 in May 2023, reinstating bundled freight charges.
Despite fears that tighter regulation might deter shipping traffic, Jayasuriya noted that the Port of Colombo’s global ranking rose from 30th in 2014 to 22nd in 2024, with steady growth in import, export, and transshipment volumes.
The SLAEA is now calling on the Government to protect the integrity of the existing regulatory framework and prevent attempts by a few indirect service providers to destabilize it. Jayasuriya emphasized that the apparel industry remains committed to transparent, ethical practices in line with ICC INCO 2020 terms, and is prepared to work with authorities to maintain a fair and globally competitive trade environment.
July 14, Colombo (LNW): Sri Lanka has made remarkable strides in strengthening investor confidence and transparency in 2025, with notable progress in both investor relations practices and foreign direct investment (FDI) inflows. According to the Institute of International Finance (IIF), Sri Lanka is now among the top five countries showing the most significant improvements in investor relations globally.
In its July 9, 2025 Investor Relations and Debt Transparency Report, the IIF ranked Sri Lanka 5th out of 54 emerging and developing economies for score improvements. The country’s investor relations score surged by +9.1 points, reaching 37.33 out of 50, up from 28.21 in 2024 and 25.2 in 2023. This improvement reflects the government’s ongoing efforts to enhance fiscal transparency and communication with global investors.
A key development was the establishment of a dedicated Investor Relations Unit (IRU) within the newly formed Public Debt Management Office (PDMO) under the Ministry of Finance, Planning, and Economic Development. This move marked Sri Lanka’s first official engagement with the IIF and enabled the country to respond more effectively to international investor surveys. The IIF praised Sri Lanka’s initiatives, including improved accessibility of senior policymakers to investors and increased transparency in debt data.
The enhanced investor relations framework is expected to improve perceptions of Sri Lanka’s economic policy direction, restore trust, lower sovereign borrowing costs, and eventually support better credit ratings.
Complementing these institutional reforms is a noticeable uptick in Sri Lanka’s actual FDI performance in 2025. According to the Board of Investment (BOI), Sri Lanka has attracted over USD 750 million in FDI during the first half of 2025, marking a 28% increase compared to the same period last year. The BOI attributes this growth to renewed interest in logistics, renewable energy, IT services, and manufacturing zones.
Additionally, the BOI reports that over 40 new foreign investment projects have been approved so far this year, creating thousands of job opportunities and diversifying the country’s export base. Major investors have hailed the government’s efforts in improving regulatory transparency, fast-tracking approvals, and strengthening investor aftercare services.
These parallel developments in investor outreach and actual foreign capital inflows reflect a turning point in Sri Lanka’s economic recovery. With continued fiscal discipline, policy consistency, and improved global engagement, Sri Lanka is positioning itself as a more attractive destination for global investors in the region.
July 14, Colombo (LNW): East Container Terminal restructuring aims to boost competitiveness despite construction setbacks and governance concerns
In a strategic move aimed at streamlining operations and enhancing competitiveness, the Sri Lanka Ports Authority (SLPA) has announced the establishment of a new fully state-owned company, Colombo East Container Terminal (Pvt) Ltd, to manage the East Container Terminal (ECT) of the Colombo Port. This decision was formally approved by the Cabinet following a proposal by the Minister of Highways, Ports, and Civil Aviation.
The SLPA stated that the restructuring is designed to improve the efficiency and management of ECT operations, enabling it to compete with private terminal operators such as SAGT (South Asia Gateway Terminals) and CICT (Colombo International Container Terminals). The move follows mounting pressure on the SLPA to modernize its operations, especially amid growing global container traffic and the increasing importance of Sri Lanka as a transshipment hub in the Indian Ocean.
The East Container Terminal, considered one of the most strategically located deep-water terminals in South Asia, has the capacity to accommodate ultra-large container vessels (ULCVs). However, its development has been riddled with controversy, delays, and construction irregularities since its partial handover was reversed in 2021 after public and political backlash against foreign participation—particularly Indian and Japanese investment.
Despite its potential, ECT remains underutilized compared to its private counterparts. While the nearby Jaya Container Terminals (JCT) continue to handle mostly feeder vessels due to depth limitations, ECT’s development was meant to position the SLPA to handle larger mainline ships directly. The recent announcement signals an attempt to revive that ambition by giving ECT a separate management structure under government control.
However, industry analysts and maritime experts have raised concerns over the efficiency of a purely state-run model. “Simply setting up a company is not enough. There must be clear timelines, accountability frameworks, and commercial independence,” a senior logistics consultant told The Sunday Times. There have also been unconfirmed reports of irregularities in procurement processes, contractor selections, and project cost escalations since construction resumed in 2021 under full SLPA control.
According to the SLPA’s most recent data, construction at ECT is behind schedule, with key infrastructure including cranes and automation systems yet to be fully installed. The delay is contributing to congestion risks and missed opportunities, especially as regional ports like Mundra and Dubai aggressively expand their capacity.
The reorganization could provide a lifeline for the ECT project, but unless transparency improves and technical bottlenecks are addressed, it may face the same fate as several other state-run infrastructure projects—burdened by red tape and inefficiency.
