By: Staff Writer
August 25, Colombo (LNW): Sri Lanka’s tea industry, the island nation’s largest agricultural export earner, recorded an encouraging recovery in July 2025 with shipments reaching 24 million kilograms (Mnkg), a 13% increase from 21.3 Mnkg in the same month last year. According to Siyaka Research, which analysed Customs data, this was the highest monthly export volume in 42 months, last seen in December 2021.
Exports for the first seven months of the year have totalled 150 Mnkg, up 7% compared to 140.4 Mnkg in 2024, marking the strongest performance since 2021. Earnings too have hit a record, with Rs. 263 billion (approximately US$884 million) generated in January–July. The average Free on Board (FOB) value of $5.87 per kilogram is the highest-ever recorded for Ceylon Tea.
Value-added tea exports have risen to 58%, the best in six years, reflecting Sri Lanka’s gradual shift toward higher-value branded teas. Among markets, Iraq remains the largest buyer with 22.3 Mnkg, while Libya’s imports surged from 3.7 Mnkg to 13 Mnkg. Russia matched Libya at 13 Mnkg, followed by the UAE (10.6 Mnkg) and Turkey (10.3 Mnkg).
Yet, despite this export performance, the industry continues to grapple with deep-rooted structural problems. The absence of a clear policy framework from the government has left both private and state-owned plantations struggling with rising costs, inconsistent productivity, and mounting labour issues.
Wage negotiations with estate workers have dragged on for months, with plantation unions demanding significant increases to cope with cost-of-living pressures. While the government has promised to implement a revised wage structure, progress has been slow. Analysts warn that without fair wages and investment in
mechanisation, Sri Lanka risks losing competitiveness to regional rivals such as Kenya and India, which continue to modernise their plantation operations.
State-owned plantation companies, which account for nearly one-third of the tea cultivated area, are in particular distress. Many remain burdened with poor management, outdated infrastructure, and weak productivity levels, despite repeated calls for restructuring or partial privatisation. Productivity on these estates is estimated to be 20–30% below that of well-managed private plantations.
Industry experts note that although global demand for orthodox Ceylon Tea remains strong—especially in Middle Eastern and Russian markets—supply bottlenecks and policy uncertainty could undermine long-term growth. Exporters have also expressed concern over inconsistent government decisions on fertiliser imports, taxation, and energy costs, all of which directly affect plantation operations.
Sri Lanka’s tea exports surge but industry hobbled by weak policy reforms
US Tariff Reductions Ease Pressure, But Trump Threats Create Uncertainty
By: Staff Writer
August 25, Colombo (LNW): Sri Lanka’s industrial sector has welcomed progress in tariff negotiations with the United States, though concerns are growing over hidden conditions and the possibility of tougher measures if Washington’s demands are not met.
Ceylon National Chamber of Industries (CNCI) Chairman Kevin Edwards said manufacturers were “broadly satisfied” with the Government’s efforts to cut reciprocal tariffs on US imports to 20 percent from the earlier 44 percent. However, he cautioned that the business community remained in the dark over the full scope of trade concessions and the impact of future US policy shifts.
“We are happy with the progress made by the Government to reduce US tariffs further, but we do understand there is some give-and-take. At the moment, we are in the dark about what is being negotiated and what the Government plans to offer the US,” Edwards added.
The uncertainty is heightened by speculation that former US President Donald Trump—who has already threatened higher tariffs on trading partners who fail to comply with undisclosed conditions—may push for tougher terms if Sri Lanka is perceived to be uncooperative.
Analysts warn that Sri Lanka, whose exports to the US account for nearly 27 percent of total merchandise earnings, could face severe shocks if tariff preferences are withdrawn or reversed.
Textiles and apparel, which represent over 40 percent of exports to the US, would be the most vulnerable sector. Even a modest 5–10 percent hike in tariffs could erode Sri Lanka’s competitiveness against Bangladesh, Vietnam, and Cambodia, all of which enjoy preferential access to US markets. According to industry estimates, a 10 percent increase in US duties could wipe out more than USD 600 million in apparel earnings annually.
Edwards further noted that Sri Lanka’s export-oriented manufacturers rely on cost-effective raw materials and energy inputs from Asian suppliers. Imports from the US, he warned, not only take longer to ship but also raise costs significantly. With global oil prices remaining volatile, distance-based freight charges from the US could place additional pressure on local industries already facing thin profit margins.
The CNCI, representing over 400 domestic manufacturers, has urged the Government to maintain transparency in its negotiations and safeguard energy affordability. “For the moment, we will be patient, knowing there is no choice in the matter, and drawing comfort that the bigger industries are also working closely with the Government,” Edwards said.
While tariff relief offers temporary breathing space, experts caution that Sri Lanka’s trade dependence on the US leaves the economy highly exposed to Washington’s shifting political winds. With Trump hinting at punitive tariff hikes for non-compliant countries, Colombo faces the delicate task of balancing industrial protection with the demands of its most important export market.
CEAT OHT Lanka Commits to Major Investment, Cementing Sri Lanka’s Role in Global Tyre Industry
August 25, Colombo (LNW): In a significant development poised to reshape Sri Lanka’s manufacturing and export landscape, CEAT OHT Lanka (Private) Limited has entered into a formal agreement with the Board of Investment of Sri Lanka (BOI) to establish an investment worth US$ 171 million.
This deal represents one of the most substantial capital infusions from India into Sri Lanka in recent years, underscoring a strengthening of economic ties between the two nations.
The agreement follows CEAT Ltd.’s recent acquisition of the Construction Compact Line business from the Michelin Group. As part of this transaction, CEAT has also taken control of key manufacturing facilities in Sri Lanka, including the Midigama plant and the Casting Product plant situated in Kotugoda.
This acquisition also paves the way for CEAT to eventually gain full and permanent ownership of the globally recognised Camso brand, following a transitional three-year licensing period. The full closure of this acquisition is currently in progress.
The BOI highlighted that this partnership not only represents a milestone investment but also strategically elevates Sri Lanka’s standing as a pivotal hub in the Off-Highway Tyre (OHT) sector. With export-driven industrial expansion as a national priority, this initiative is expected to contribute meaningfully to economic resilience and international competitiveness.
As part of its broader commitment to social responsibility and sustainable employment, CEAT OHT Lanka, in collaboration with Michelin Lanka and the Inter-Company Employees Union (ICEU), has signed a Tripartite Memorandum of Understanding.
This agreement guarantees the continued employment of approximately 1,483 workers, ensuring that existing employment terms—such as length of service, seniority, salaries, and benefits—will be fully preserved. Importantly, there will be no job losses as operations transition, signalling a stable and inclusive integration process.
Chairman of the BOI, Arjuna Herath, welcomed the development, noting, “This investment not only signals CEAT’s confidence in Sri Lanka’s manufacturing capabilities but also highlights the country’s emergence as a globally significant production base. We believe this move will catalyse further high-quality foreign investments.”
Amit Tolani, CEO of CEAT Specialty, remarked that the investment marks a new era in the company’s partnership with Sri Lanka, expressing optimism about the opportunities it will bring both to CEAT and the nation. “We are embarking on a new journey of growth, and Sri Lanka is central to that vision,” he said.
Adding further insight, CEAT Ltd.’s CFO Kumar Subbiah stated that the company’s immediate focus is on ensuring a smooth transition, maintaining job security, and enhancing operational capacity. “This investment reaffirms our enduring commitment to Sri Lanka and its workforce, and our ambition to build a world-class base for OHT manufacturing and exports here,” he said.
This strategic move not only solidifies CEAT’s stature in the global off-highway tyre and tracks market, but also positions Sri Lanka as a key node in the company’s international expansion strategy. At the crossroads of industrial development, workforce protection, and export excellence, the initiative is in alignment with the BOI’s vision of fostering high-impact foreign investment and driving sustainable national growth.
Colombo DIG Arrested in Connection with Alleged Temple Treasure Hunt
August 25, Colombo (LNW): Deputy Inspector General of Police (DIG) for Colombo, Uditha Liyanage, has been taken into custody by the Criminal Investigations Department (CID) over his suspected involvement in a treasure hunting operation allegedly linked to his wife.
The arrest stems from an incident reported on August 15, in which DIG Liyanage’s wife and seven others were apprehended for reportedly engaging in illegal excavation activities at a temple site in Shravasthipura, Thimbirigaskadawala, located in the Anuradhapura District. The group was arrested following a tip-off received by the Anuradhapura Police.
DIG Liyanage is expected to be presented before the Anuradhapura Magistrate’s Court, as investigations continue into the circumstances surrounding the incident. His arrest marks a significant development in the case, raising questions about the potential abuse of authority and the involvement of high-ranking law enforcement figures in criminal activity.
The initial suspects, including Liyanage’s wife, were remanded until 26 August after being produced before the same magistrate earlier this month. Authorities have yet to disclose the specific nature of DIG Liyanage’s alleged role in the operation, though sources suggest he may have been aware of or complicit in the planning or facilitation of the excavation.
Supreme Court Begins Hearing Petitions Challenging Bill to Revoke Former Presidents’ Privileges
August 25, Colombo (LNW): The Supreme Court today (25) began hearing a series of petitions challenging the constitutionality of a government-backed bill aimed at revoking the privileges afforded to former presidents.
The legal challenge, brought by six petitioners, contends that the proposed legislation cannot be lawfully enacted without both a two-thirds majority in Parliament and approval via a nationwide referendum. The petitioners argue that the bill, if passed without satisfying these conditions, would violate key constitutional safeguards.
The matter is being reviewed by a three-judge bench comprising Chief Justice Preethi Padman Surasena, Justice Achala Wengappuli, and Justice Sampath Abeykoon. During today’s proceedings, legal representatives for the petitioners began presenting their arguments before the bench.
Appearing for the state, Solicitor General Viraj Dayaratne defended the bill on behalf of the government, signalling the administration’s intent to proceed with the legislation amid growing political and legal scrutiny.
Among the petitioners are Renuka Perera, Administrative Secretary of the Sri Lanka Podujana Peramuna (SLPP); Mahinda Pathirana, a university lecturer; and Attorney Manoj Gamage, who serves as the media spokesperson for former President Mahinda Rajapaksa. Others with political and legal affiliations have also joined the challenge, indicating the wider implications of the bill within the current political landscape.
Opposition Leaders’ Statement on Arrest of Ex-President RW
August 25, Colombo (LNW): A collective of opposition party leaders has voiced deep concern over the recent arrest of former President Ranil Wickremesinghe by the Criminal Investigation Department (CID), describing the move as an alarming departure from democratic principles and a sign of growing authoritarian tendencies within the state apparatus.
In a strongly worded statement, the opposition condemned the decision to detain the former Head of State on non-bailable charges, labelling it a serious encroachment upon the foundations of Sri Lanka’s multiparty democracy. The group warned that the unfolding situation signals a deliberate erosion of democratic norms and urged the public to remain vigilant in defence of the country’s constitutional values.
The statement draws attention to what the signatories call an increasingly aggressive use of legal mechanisms to target political opponents. In particular, it questions the legitimacy of remanding a former president over allegations that remain under investigation, pointing out the inherent difficulty in neatly separating the official and personal expenditures of a Head of State. Such actions, they argue, create a dangerous precedent where political rivalry may masquerade as legal accountability.
The opposition leaders further contend that the charges levelled against Wickremesinghe appear to be driven less by legal merit and more by political motivations, with the law being selectively interpreted to serve partisan ends. They also raised concerns about what they perceive as creeping politicisation within the Attorney General’s Department—warning that if these patterns are allowed to continue unchecked, they could lead to the dismantling of institutional independence.
The statement concluded with a call to citizens across the country to oppose what was described as a “clear drift toward authoritarianism,” urging them to make full use of peaceful and democratic means to resist the dismantling of civil liberties. The signatories stressed that the country’s hard-won freedoms and democratic traditions must be preserved—not just for the present, but for the generations to come.
Ukrainian President Thanks Sri Lanka for Independence Day Wishes, Highlights Bilateral Ties
August 25, Colombo (LNW): Ukrainian President Volodymyr Zelenskyy has expressed his appreciation to President Anura Kumara Dissanayake of Sri Lanka for his warm greetings on the occasion of Ukraine’s Independence Day.
Taking to social media platform ‘X’, President Zelenskyy acknowledged the gesture, stating that Ukraine values its friendly relations and cooperation with Sri Lanka—relations grounded in mutual respect and a shared commitment to peace and prosperity.
He further noted the potential for deeper bilateral engagement, saying, “We are confident that our relations hold potential for further development, bringing benefits to both nations.”
President Dissanayake, in a formal message to mark the 33rd anniversary of Ukraine’s independence from the Soviet Union, reaffirmed Sri Lanka’s goodwill towards the Ukrainian people. He expressed hope that the longstanding ties between the two countries would continue to flourish in the spirit of friendship and mutual understanding.
In his letter, the Sri Lankan President also extended his solidarity with Ukraine during its ongoing challenges, stating, “It is my earnest hope that the challenges and hardships presently confronted by Ukraine would be resolved soon, restoring peace, harmony and stability of the country.”
I thank President @anuradisanayake for the warm and sincere greetings on Ukraine’s Independence Day. Ukraine values the friendly relations and cooperation with Sri Lanka, based on mutual respect and a shared commitment to peace and prosperity. We are confident that our relations… pic.twitter.com/3SzKMJuG3y
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) August 24, 2025
Long-Distance Buses to Operate Under Unified Timetable from Midnight Tonight
August 25, Colombo (LNW): The National Transport Commission (NTC) has announced a significant overhaul in long-distance passenger transport, with both Sri Lanka Transport Board (SLTB) and privately operated buses set to run under a single, unified timetable from midnight today (25).
This new schedule will apply to a wide range of routes connecting Colombo with key destinations across the island, including:
Colombo to Chilaw, Puttalam, Anamaduwa, Eluwankulama, Kalpitiya, Mannar, Talaimannar, Kuliyapitiya, Nikaweratiya, Anuradhapura, Vavuniya, Kilinochchi, Jaffna, Kankesanturai, Karainagar, and Thunukkai. The route from Negombo to Kalpitiya is also included in the unified system.
NTC Chairman, Eng. P.A. Chandrapala, stated that operations will be launched from the Bastiyan Mawatha Private Bus Stand in Colombo, with the first services departing at midnight. He emphasised that the coordinated timetable is intended to streamline services, reduce passenger waiting times, and eliminate route duplication between public and private operators.
As part of the new system, bus drivers will be provided with designated rest periods, including a break after every four and a half hours of driving, to promote road safety and driver wellbeing.
In addition, Chairman Chandrapala confirmed that the NTC will implement continuous monitoring to ensure that passengers have access to clean and hygienic food facilities along their journey.
Government to Launch Major Development Drive in North Starting September
August 25, Colombo (LNW): The government will roll out a series of large-scale development initiatives beginning next month, with a particular focus on the Northern Province, according to Minister Bimal Ratnayake.
Speaking to the media, the Minister confirmed that the first phase of this national development campaign will be launched in Jaffna in early September, under the leadership of President Anura Kumara Dissanayake.
Amongst the headline initiatives is the creation of a new “Coconut Triangle” in the Northern Province, with operations centred in Mullaitivu, part of the wider Vanni region. Development activities linked to this agricultural initiative are set to begin on September 02, aiming to revitalise local economies through increased cultivation and investment in supporting infrastructure.
Minister Ratnayake also highlighted plans to open an international-standard sports complex in the Mandaitivu area of Jaffna, marking a major investment in the region’s sports and recreational infrastructure. The complex is expected to serve as a hub for athletic development and regional events.
In a bid to improve public services, particularly for residents in the North, the Minister announced that a digital platform will be introduced to streamline the process of obtaining passports through the Jaffna District Secretariat. This measure is intended to resolve a longstanding grievance among locals, who have faced persistent difficulties with access to such services.
Additional development projects, spanning various sectors, are also scheduled to be launched in the coming weeks, although specific details have yet to be disclosed.
The government has indicated that these efforts are part of its strategy to deliver equitable development across all provinces, with particular emphasis on areas historically under-served.
Magistrate Questions Premature Submission of Case File in Forged Property Deed Probe
August 25, Colombo (LNW): Concerns have arisen within the judiciary after Mount Lavinia Magistrate Chathurika de Silva raised questions over procedural irregularities in an ongoing investigation concerning an allegedly forged property deed tied to a public institution.
The matter involves a two-storey building belonging to the National Workers Institute, reportedly leased out under questionable circumstances for Rs. 3.6 million. The property is at the centre of a legal battle that implicates several high-profile political figures, including Minister Wasantha Samarasinghe, Deputy Minister Mahinda Jayasinghe, and Kaduwela Mayor Ranjan Jayalal.
During proceedings held on August 22, Magistrate de Silva questioned why the case file had been submitted to the Attorney General’s Department before statements had been recorded from the named suspects.
In response, representatives of the Colombo Fraud Investigation Bureau (CFIB) were unable to provide a clear justification for the early handover of the file. They did, however, confirm that Minister Samarasinghe had since provided a statement, in which he claimed to have been involved in the property lease merely as a representative of a decision made by the executive committee of the National Workers Congress Trade Union.
Under a directive previously issued by the court, the three politicians in question were called to appear before the CFIB, and their statements have now been recorded and submitted.
Despite this development, concerns persist about the timeline of the investigation and the apparent reluctance of the police to carry out arrest orders issued earlier in the process.
Appearing on behalf of the complainant, President’s Counsel Maithri Gunaratne criticised the conduct of the police, accusing them of deliberately delaying the case under the pretext of awaiting direction from the Attorney General. He alleged that law enforcement had failed on two separate occasions to execute arrest warrants and had misrepresented the status of the investigation to the court.
The case has been adjourned until September 26, when it will resume under a new magistrate, as Chathurika de Silva has been reassigned to another court.
Prior to her departure, Magistrate de Silva clarified that her transfer was a routine decision made by the Judicial Service Commission and emphasised that no external influence had affected her handling of the matter.