June 22, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has called for swift and strategic measures to confront a growing crisis in Sri Lanka’s education system, highlighting an acute shortage of more than 42,000 teachers across national and provincial schools.

Speaking during a high-level meeting with the Cabinet-appointed Task Force for Digital Education Transformation, she underscored the urgent need for innovation to bridge the widening educational divide.

In response to the teacher shortfall, Dr Amarasuriya proposed the rapid deployment of digital learning systems to ensure continuity in education delivery.

She recommended that a comprehensive framework for digital instruction be introduced within the next six months, with the aim of optimising existing resources and minimising disruptions to student learning.

The meeting centred on accelerating digital transformation in the school system for students in Grades 6 to 13. Participants discussed both immediate and long-term strategies for integrating technology in classrooms, revising outdated policies, and addressing barriers to implementation—including regional disparities in infrastructure and access.

Dr Amarasuriya also stressed that the initiative must include specific provisions for students with disabilities, ensuring equitable access to learning tools and digital platforms. According to the Prime Minister, inclusivity must be a foundational principle in shaping any nationwide education reform.

She further emphasised the importance of creating a strong, multi-sectoral task force composed of educators, technologists, policymakers, and social advocates to oversee and guide the reform process.

The task force, she said, must ensure that digital education reforms do not simply benefit well-resourced urban schools but instead uplift all students regardless of geography or socioeconomic background.

June 22, Colombo (LNW): A new national initiative has been introduced to commend exceptional academic performers at the district level in Sri Lanka’s most recent G.C.E. Advanced Level examinations.

The programme, spearheaded by the President’s Fund, seeks to identify and reward students who have demonstrated outstanding scholastic achievement in the 2023/2024 A/L cycle.

The first of a series of ceremonies is set to unfold today in Kilinochchi, with the event taking place under the patronage of Speaker of Parliament, Jagath Wickramaratne. Organised with the intention of recognising academic excellence in the Northern Province, today’s gathering will spotlight students from Jaffna, Kilinochchi, Mullaitivu, Mannar, and Vavuniya.

Under this scheme, a selection of 60 students from each district who have excelled across all academic streams will be awarded financial scholarships and certificates as a token of recognition and encouragement.

The awards are designed not only to provide financial support but also to serve as a national acknowledgement of their dedication and potential.

This recognition initiative is intended to be extended across the island, with arrangements currently underway to hold similar events in other districts in the coming months. The President’s Fund, which is managing the project, has indicated that this effort is part of a broader strategy to support and uplift youth who show promise, especially in regions that have historically faced educational disparities.

June 22, Colombo (LNW): Sri Lanka has expressed deep appreciation to India for extending a crucial lifeline to its citizens stranded in Iran, as the regional crisis intensifies.

The move comes in the wake of India’s ongoing evacuation mission, which has been broadened to include foreign nationals from neighbouring countries following direct appeals from Colombo and Kathmandu.

Foreign Minister Vijitha Herath acknowledged the gesture as a demonstration of the close ties and cooperative spirit that continue to define relations between Sri Lanka and India.

He remarked that such acts of solidarity reinforce the longstanding partnership between the two nations, especially during times of crisis.

India’s evacuation campaign, codenamed Operation Sindhu, was launched in response to the deteriorating security situation in Iran, which remains locked in a volatile military exchange with Israel. The Indian Embassy in Tehran confirmed that citizens of Sri Lanka and Nepal would now be eligible for evacuation alongside Indian nationals, with coordination lines and emergency channels established for urgent assistance.

Sri Lankans currently in Iran seeking evacuation have been advised to contact the Indian Embassy through a dedicated Telegram platform or emergency telephone lines, as well as reach out to their own mission in Tehran for support.

The Embassy of Sri Lanka has also issued helpline numbers staffed by multilingual officers to streamline communication.

The evacuation efforts are taking place against a backdrop of rapidly escalating military action in the Middle East. On Saturday (21), U.S. President Donald Trump announced that a targeted operation had been executed against key nuclear infrastructure in Iran, including the suspected facility at Fordow.

In a post on social media, Trump declared the mission a success and hinted at a desire for de-escalation, writing, “Now is the time for peace.”

Whilst the Pentagon confirmed the involvement of U.S. B-2 bombers in the strike, questions remain as to whether Israeli forces participated in the coordinated assault.

In parallel, Israel has continued its aerial bombardment of Iranian sites, insisting that its objective is to eliminate any potential threat posed by Iran’s nuclear ambitions. Iranian officials maintain that their programme remains strictly for civilian energy development, though international observers remain sceptical.

Efforts by Western governments to broker a ceasefire have so far failed to gain traction, as both Iran and Israel remain entrenched in their positions.

June 22, Colombo (LNW): Several spells of showers will occur in the Western, Sabaragamuwa and North-western provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (22).

Showers or thundershowers may occur at a few places in the Uva province and in Ampara and Batticaloa districts during the afternoon or night.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Southern and North-western provinces and in Trincomalee district.

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 Puttalam to Matara via Colombo and Galle.

Winds:

Winds will be 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 Chilaw to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota.

Wind speed can increase up to (45-50) kmph at times in the sea areas extending from Chilaw to Matara via Colombo and Galle and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:

The sea areas off the coast extending from Chilaw to Kankasanthurai via Mannar and from Matara to Pottuvil via Hambantota will be rough at times.

The sea areas off the coast extending from Chilaw to Matara via Colombo and Galle and from Kankasanthurai to Trincomalee via Mullaittivu will be fairly rough at times.

The wave height may increase (about 2.0 – 2.5 m) in the sea areas off the coast extending from Mannar to Pottuvil via Puttalam, Colombo, Galle and Hambantota (this is not for land area).

Naval and fishing communities are requested to be vigilant in this regard.

The Sri Lankan government is reassessing the possibility of reintroducing a minimum wage policy for the country’s migrant workers, especially those employed in the Middle East, in response to growing concerns over wage disparities and labour exploitation.

Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath informed Parliament that the review is part of the broader 2023–2027 National Policy and Action Plan on Migration for Employment. Over 1.3 million Sri Lankans are currently working in Middle Eastern nations, playing a key role in the national economy through remittance inflows.

Minister Herath noted that the government removed the mandatory minimum wage in September 2021 in a bid to expand employment opportunities in the post-COVID era. However, this decision has since led to increased concerns about fair compensation and labour protections. “While the policy offered flexibility, it has also exposed workers to vulnerabilities such as wage undercutting and inadequate safeguards,” he stated.

Current wage conditions vary by host country:

• Qatar mandates a minimum wage of 1,800 Qatari Riyals (~$494),
• Kuwait offers around $240 per month,
• Saudi Arabia and the UAE do not enforce minimum wages for migrant workers.

The Sri Lankan Embassy in Qatar is working closely with local authorities to ensure compliance with wage laws.

To address existing disparities, the Sri Lanka Bureau of Foreign Employment (SLBFE) is preparing standard wage guidelines for recruitment agencies, aimed at preventing wage manipulation and ensuring better protection for workers. The government estimates that stronger wage policies could help raise annual remittances to $1.5 billion.

Minister Herath affirmed Sri Lanka’s commitment to fair and safe migration, highlighting the country’s bilateral agreements and MoUs with eight Middle Eastern countries, including Saudi Arabia, the UAE, Qatar, and Kuwait. These agreements enforce standard contracts, guarantee fair wages, and provide legal channels for dispute resolution.

Addressing comparisons with other regional migrant workforces, Herath acknowledged that Filipina domestic workers in Saudi Arabia reportedly earn $384 per month, while Sri Lankan domestic workers typically earn between $250 and $350. He said Sri Lanka is pursuing diplomatic engagement to ensure wage parity with workers from nations such as the Philippines, Nepal, and Bangladesh.

The SLBFE continues to monitor recruitment practices, with the authority to investigate complaints, penalise errant agencies, and blacklist abusive employers. New measures including digital worker registration, contract verification, and post-arrival surveys have been introduced to enhance worker protection.

Herath concluded by emphasizing the critical role of Sri Lankan diplomatic missions and welfare officers in handling grievances and upholding the dignity and rights of migrant workers, noting that a comprehensive review of recruitment agency operations is now underway.

The Central Bank of Sri Lanka (CBSL), in collaboration with the Ministry of Finance and the International Monetary Fund (IMF), hosted a high-level conference titled “Sri Lanka’s Road to Recovery: Debt and Governance” on June 16, 2025, at Shangri-La Colombo.

The event brought together government officials, international stakeholders, private sector leaders, and civil society representatives to reflect on the country’s economic progress and governance reforms amid the IMF-supported recovery programme.

CBSL Governor Dr. Nandalal Weerasinghe welcomed participants, followed by opening remarks from President Anura Kumara Dissanayake and IMF First Deputy Managing Director Dr. Gita Gopinath. The conference reviewed Sri Lanka’s progress at the midpoint of the Extended Fund Facility (EFF) and assessed the nation’s economic turnaround following its 2022 crisis.

President Dissanayake emphasized the visible scars left by the crisis, noting that while macroeconomic stability had been achieved, structural reforms were essential for long-term resilience.

He reiterated the government’s aspiration to achieve economic self-reliance, aiming for the current IMF programme to be Sri Lanka’s last. Dr. Gopinath praised the difficult but necessary steps taken so far, urging the country to maintain reform momentum despite challenges.

Governor Weerasinghe highlighted the progress in stabilizing the economy and stressed the importance of domestic ownership of the reform agenda. He pointed to legislative advances such as the Central Bank of Sri Lanka Act, the Public Financial Management Act, and the Anti-Corruption Act as key to improving macroeconomic governance.

The conference featured four panel discussions. The opening session, moderated by CBSL Assistant Governor Dr. Chandranath Amarasekara, offered context on the 2022 crisis and Sri Lanka’s reform journey. Experts including Treasury Secretary Mahinda Siriwardana and IMF Asia-Pacific Director Dr. Krishna Srinivasan praised the pace of reforms, attributing it to strong political backing.

Session 1, “The Road to Debt Sustainability,” examined the complexities of Sri Lanka’s debt restructuring. Moderated by Dr. Peter Breuer (IMF), the panel called for greater transparency and equitable burden-sharing.

Session 2, “The Road to Credibility,” focused on governance. Discussions led by IMF Legal Department’s Joel Turkewitz highlighted the significance of Sri Lanka’s Governance Diagnostic—the first of its kind in Asia. Calls were made for stronger enforcement and public engagement to build trust.

 The final panel, “Challenges Ahead,” included Dr. Gopinath, former CBSL Governor Dr. Indrajit Coomaraswamy, and other key figures. Speakers emphasized private sector development, export-led growth, and deep institutional reform as pillars of long-term stability.

The conference marked a pivotal moment in Sri Lanka’s path to recovery, reaffirming the joint commitment of the government, CBSL, and IMF to restoring economic stability and public trust.

Sri Lanka is ramping up its efforts to transform into a regional air travel hub by fostering strategic airline alliances and investing in major infrastructure projects, as the country navigates complex political and economic challenges.

Positioned at the crossroads of major Indian Ocean flight routes, Sri Lanka offers unmatched geographical advantage to establish itself as a central player in regional aviation.

Recognizing this potential, authorities are now focused on strengthening air power strategies that integrate both domestic requirements and regional dynamics.

 At the core of this approach is a push for collaboration with other carriers through code-sharing agreements and strategic alliances, which could help SriLankan Airlines expand its global reach, enhance passenger options, and increase cargo volumes.

Such partnerships are particularly vital as the nation looks to rebuild its aviation sector following a prolonged economic crisis and pandemic-related disruptions. By tapping into regional carrier networks, Sri Lanka aims to stimulate tourism, facilitate trade, and attract investment.

As part of these wider efforts, the Chairman and senior management team of Airport and Aviation Services (Sri Lanka) Ltd. (AASL) recently held a high-level strategic meeting with the Board of Airline Representatives (BAR) in Colombo.

Country managers of major international airlines operating in Sri Lanka participated in the session, where they outlined their plans for expanding routes, increasing flight frequencies, and boosting both passenger and cargo capacity.

The meeting focused on aligning infrastructure development, operational efficiency, and service quality with global aviation trends and airline expectations. AASL showcased ongoing and upcoming developments, most notably the Bandaranaike International Airport (BIA) Terminal 2 Project—seen as a game changer in the country’s aviation infrastructure.

A Japanese Airport Consultants representative provided a detailed progress update on Terminal 2, emphasizing its enhanced capacity and improved passenger processing systems. Once completed, the new terminal is expected to significantly boost BIA’s ability to handle growing air traffic and offer a smoother, more modern travel experience.

BAR Chairman Dimuthu Tennakoon described the meeting as a milestone in stakeholder cooperation, expressing confidence that the discussions would help foster a more integrated and passenger-centric aviation ecosystem in Sri Lanka. He also noted that airline representatives would be updating their respective headquarters on the encouraging progress in infrastructure and partnership initiatives.

This multi-pronged strategy—combining infrastructure modernisation, alliance building, and enhanced service focus—marks a crucial step in Sri Lanka’s journey to become a resilient and competitive aviation hub in the Indian Ocean region.

Sri Lanka’s listed companies reported a robust 57.4% year-on-year increase in earnings for the March 2025 quarter, marking the sixth consecutive quarter of profit growth, according to an analysis by First Capital Research.

The strong performance was mainly fueled by the banking and consumer sectors, benefiting from reduced finance costs and improving economic conditions.

The banking sector emerged as a key driver, with earnings rising 43.5% year-on-year. Industry giants such as Commercial Bank, HNB, Sampath Bank, Nations Trust, NDB, Seylan Bank, and Pan Asia Banking Corporation posted a collective 52.9% earnings growth.

The improvement stemmed from a surge in net interest income, supported by falling interest rates, which helped lower funding costs. Growth in fee-based income—especially from digital banking and card transactions—combined with reduced loan impairment charges due to better credit quality, added to the bottom-line gains.

However, the banking sector’s performance was tempered by rising operating expenses, and a few institutions—such as DFCC, Sanasa Development Bank, and HDFC—recorded profit declines.

Meanwhile, the Food, Beverage, and Tobacco sector delivered the strongest results across all segments, with profits soaring by 174.8%.

This spike was driven by higher revenues, improved margins, and lower finance costs. Major contributors including Ceylon Tobacco Company, Melstacorp, Cargills, Distilleries, Bukit Darah, Cold Storage, and Lion Brewery accounted for more than 60% of sector earnings.

The sector benefited from growing consumer demand, lower input costs, and a strengthening rupee, which further enhanced margins.

In contrast, the Consumer Durables and Apparel sector suffered a steep 206.6% drop in earnings. The plunge was largely due to HELA and Dipped Products, which posted a combined earnings contraction of 251.5%.

HELA swung from a Rs. 6 billion profit last year to an Rs. 8.8 billion loss this quarter, impacted by shrinking margins, rising operational costs, and impairment losses. DPL also faced pressure from a significant fall in revenue and a sharp rise in distribution costs.

The Real Estate sector also underperformed, with earnings dropping 26% year-on-year. This was primarily due to major declines at Overseas Realty and CT Land Development. Overseas Realty saw a 44.7% profit decline due to forex losses, while CT Land posted a 73.3% drop stemming from weaker investment property revaluations.

Despite isolated sectoral weaknesses, Sri Lanka’s corporate earnings momentum remains strong, signaling cautious optimism for sustained recovery in 2025.

The Board of Investment (BOI) of Sri Lanka has reported a significant increase of US$96 million in Foreign Direct Investment (FDI) during the first quarter of 2025, compared to the same period last year. This was announced on June 20 during a progress review meeting held at the Presidential Secretariat, chaired by President Anura Kumara Dissanayake.

In addition to the FDI boost, domestic investment rose by US$21 million, and export income grew by US$176 millionin the first quarter of 2025. So far this year, Sri Lanka has attracted a total of US$4.67 billion in foreign investment proposals.

The meeting also addressed the challenges and barriers to attracting investment, with discussions focused on strategic solutions to improve Sri Lanka’s investment climate.

President Dissanayake emphasized that the BOI plays a crucial role in economic development and in uplifting rural living standards. He noted that traditional sectors are reaching their limits in investment potential, and that it is now essential to explore emerging industries and innovation-led opportunities—an initiative that falls squarely within the BOI’s responsibilities.

Highlighting the urgency for progress, the President remarked that Sri Lanka has only attracted US$22 billion in total investment since 1978, while countries like Vietnam secured US$23 billion in a single year (2022). He urged the BOI to prioritize the services sector, such as IT, finance, and logistics, and to proactively seek out new investment frontiersrather than attempting to recover past opportunities.

Among those present at the meeting were Duminda Hulangamuwa, Senior Advisor to the President on Economic Affairs; Arjuna Herath, Chairman of the BOI; and Renuka Weerakone, Acting Director General of the BOI.