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New Zealand and Sri Lanka deepen economic ties amid island nation’s fragile recovery

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New Zealand and Sri Lanka deepen economic ties amid island nation’s fragile recovery

May 27, Colombo (LNW): As Sri Lanka continues to navigate its fragile path to economic stability, a high-level diplomatic visit from New Zealand has injected fresh momentum into bilateral relations.

Winston Peters, New Zealand’s Deputy Prime Minister and Minister of Foreign Affairs, arrived in Colombo this week for a five-day official visit aimed at strengthening cooperation across a range of sectors, including trade, agriculture, tourism, and education.

During a formal meeting held in the capital, Peters engaged in discussions with Sri Lanka’s Foreign Minister, Vijitha Herath. The two sides reportedly explored a roadmap for enhanced collaboration between the two countries, focusing on both immediate and long-term partnerships.

Particular attention was given to trade diversification, with a strong emphasis on boosting Sri Lanka’s capacity to access international markets and reducing bureaucratic obstacles that hinder trade at entry points.

The talks took place against the backdrop of Sri Lanka’s ongoing efforts to recover from the devastating economic collapse it suffered in recent years—a crisis driven by unsustainable debt levels, the impact of the COVID-19 pandemic, and the collapse of key revenue streams such as tourism and foreign remittances.

The country defaulted on its debt in April 2022 and has since entered into a bailout agreement with the International Monetary Fund. Under this deal, Colombo has committed to a series of structural reforms and is currently seeking substantial debt relief totalling approximately $17 billion.

Sri Lanka’s agricultural sector was a focal point during the bilateral talks, with both parties expressing a desire to bolster collaboration in dairy production and food processing.

Minister Herath noted that New Zealand’s involvement in modernising Sri Lanka’s dairy industry had already contributed to positive change in rural communities, although domestic production continues to fall short of national demand.

Currently, Sri Lanka still relies heavily on imported dairy goods, a significant portion of which originate from New Zealand.

Trade figures from 2024 reveal the asymmetry in economic exchanges between the two nations. New Zealand’s exports to Sri Lanka amounted to around $335 million, predominantly in dairy, whilst Sri Lanka’s exports to New Zealand were valued at $64 million and included products such as tea, garments, rubber goods and spices.

Both countries expressed a mutual interest in rebalancing this trade relationship by broadening the range of Sri Lankan products entering the New Zealand market.

The two governments also highlighted the growing presence of New Zealand-based enterprises seeking investment opportunities in Sri Lanka. Peters underscored the potential benefits of partnerships in tourism, agriculture, and health services—sectors that could not only attract investment but also generate employment and foreign exchange earnings for Sri Lanka.

EC to pursue legal action over non-submission of campaign expenditure reports

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EC to pursue legal action over non-submission of campaign expenditure reports

May 27, Colombo (LNW): The Election Commission has issued a final warning to all Local Government election candidates, urging strict compliance with the statutory requirement to disclose campaign expenditures.

Candidates who fail to meet the deadline will face legal consequences, in accordance with the Election Expenditure Regulation Act No. 03 of 2023.

The Commission’s Chairman, R.M.A.L. Rathnayake, confirmed that all candidates and affiliated political parties must submit a complete financial statement outlining campaign expenses within 21 days following the conclusion of the poll.

This includes those who incurred no costs, who are nevertheless required to submit a formal declaration stating as much.

All declarations must be handed in to the appropriate Returning Officers by midnight tonight. To facilitate this process, the Election Commission has extended operating hours of all district election offices and has launched an official online portal, allowing candidates to file digitally if physical submission is not feasible.

Rathnayake emphasised that the deadline is final, with no extensions permitted under any circumstance. He warned that failure to comply would result in the names of defaulters being immediately referred to local police authorities.

Offending candidates will then be prosecuted in line with the provisions laid out in the election law.

Landslide alerts issued as torrential rainfall hits several districts

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Landslide alerts issued as torrential rainfall hits several districts

May 27, Colombo (LNW): With intense rainfall persisting across several regions, authorities have issued early warnings for potential landslides in multiple parts of Sri Lanka.

The National Building Research Organisation (NBRO) has cautioned residents in specific localities to remain vigilant, as conditions remain conducive to slope instability and earth slips.

The alert, categorised as a Level 1 (Yellow) early warning, is currently in place for vulnerable zones in four districts—Galle, Kalutara, Kandy, and Kegalle. The warnings are expected to remain effective until 10:00 p.m. on May 28, depending on how weather patterns evolve over the coming hours.

In the Southern Province, particular attention has been drawn to the Elpitiya Divisional Secretariat Division and its environs in the Galle District, an area historically prone to waterlogging and minor landslides following prolonged rainfall.

In the Western Province, authorities have warned of possible slope failures in the Palindanuwara Division of the Kalutara District, where recent downpours have saturated the soil, heightening the risk of embankment collapses and road blockages.

Meanwhile, central highland areas are facing increased risks as well. In Kandy District, the Ganga Ihala Korale and Pasbage Korale Divisional Secretariats have been highlighted as vulnerable. These hilly terrains are known for their susceptibility to sudden landslides during the monsoon season.

Similarly, the Kegalle District has been placed on alert, with warnings issued for Bulathkohupitiya, Ruwanwella, Aranayake, and Yatiyanthota. Notably, Aranayake experienced a catastrophic landslide in 2016, a tragedy that has left lingering concerns over the region’s slope stability.

A Level 1 warning implies that conditions are conducive to landslides and that people residing in high-risk areas—particularly those living near slopes, cuttings, or steep terrain—should be prepared to evacuate if instructed.

The NBRO urges residents to remain alert to early signs such as cracks in the ground, leaning trees or utility poles, and sudden changes in water flow.

Disaster management officials have already been mobilised to monitor the situation and coordinate with local authorities to ensure swift response capabilities. Emergency services have been placed on standby, and temporary evacuation centres are being identified in case of worsening conditions.

The public is advised to stay tuned to official announcements, avoid unnecessary travel through affected areas, and report any signs of earth movement to local authorities without delay.

Sri Lanka crosses one million tourist arrivals ahead of schedule in 2025

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Sri Lanka crosses one million tourist arrivals ahead of schedule in 2025

May 27, Colombo (LNW): Sri Lanka’s tourism industry has marked a major milestone, with over one million international visitors arriving in the country by late May—reaching the symbolic figure significantly earlier than in the previous year.

This uptick reflects a broader resurgence in global travel and the island nation’s continuing appeal as a holiday destination, despite ongoing economic and infrastructural challenges.

Data issued by the Sri Lanka Tourism Development Authority (SLTDA) indicates that, as of May 25, 2025, a total of 1,006,097 visitors had arrived in the country since the beginning of the year.

This represents a notable improvement from 2024, when the one million mark was only crossed in July.

The accelerated pace of arrivals this year offers a hopeful signal to the hospitality and services sectors, many of which have been working to recover from the disruptions of recent years.

The month of May alone has contributed over 109,000 arrivals, with India continuing to dominate as the largest source market. During the first 25 days of May, 39,070 Indian nationals visited Sri Lanka, accounting for nearly 36 percent of the monthly influx.

The United Kingdom followed with 7,661 visitors, with 7,139 tourists coming from China. Germany and Bangladesh also featured prominently, with 6,143 and 5,637 visitors respectively.

When viewed cumulatively, India has sent 196,129 tourists to Sri Lanka in the first five months of 2025, making it the most robust contributor to the island’s tourism revival. Russia and the United Kingdom also remained strong markets, with 110,043 and 94,714 visitors respectively.

Analysts note that this surge is being supported by a combination of factors, including improved regional connectivity, targeted marketing campaigns, and a growing appetite amongst global travellers for culturally rich and nature-based destinations.

The government’s push to improve visa facilitation, coupled with the relative affordability of Sri Lanka compared to other destinations in the region, has further enhanced its competitiveness.

However, despite the buoyant numbers, challenges remain. Infrastructural bottlenecks at the main international airport, ongoing concerns over healthcare service delivery, and occasional labour unrest in the tourism and transport sectors have the potential to undermine visitor experiences if not addressed promptly.

Industry leaders continue to urge policymakers to match the promotional momentum with sustained improvements in airport capacity, hospitality standards, and environmental sustainability.

Tourism remains a key foreign exchange earner for Sri Lanka, and the rapid rise in arrivals this year is expected to boost revenues across multiple sectors, from hotels and transport services to small-scale handicraft businesses.

With the traditional peak season approaching later in the year, authorities are hopeful that the country could exceed 2.5 million tourist arrivals in 2025 if current trends continue.

Supplementary medical professionals to launch strike over unresolved grievances

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Supplementary medical professionals to launch strike over unresolved grievances

May 27, Colombo (LNW): A fresh wave of industrial unrest is sweeping through Sri Lanka’s health sector, as professionals from key allied medical fields initiated a strike action today over longstanding grievances.

Beginning at 8.00 a.m., medical laboratory technologists and physiotherapists—classified under the Supplementary Medical Services—have withdrawn from their duties, demanding redress on five core issues that they say have been ignored for far too long.

The strike, coordinated by the Joint Council for Professions Supplementary to Medicine (JCPSM), underscores growing discontent among health sciences graduates who claim they have been subjected to years of systemic injustice, particularly in relation to career advancement and promotional pathways.

According to JCPSM General Secretary Chanaka Dharmawickrama, unless the government acts decisively and swiftly to address these concerns, the trade union action is likely to continue indefinitely.

This disruption adds further strain to an already overburdened healthcare system, which has been grappling with medicine shortages, disease outbreaks, and administrative inefficiencies in recent months.

The professionals participating in this strike play a critical role in patient care, from diagnostics to rehabilitation, and their absence is expected to have significant ripple effects across public hospitals and medical institutions.

In a sign of growing solidarity, other unions aligned with the supplementary health services have indicated their readiness to join the strike if the authorities fail to initiate a dialogue.

The JCPSM’s leadership has already begun informal coordination with several of these groups to explore the possibility of a broader mobilisation, should the standoff escalate.

Meanwhile, tensions are also simmering within the ranks of the medical doctors. The Government Medical Officers’ Association (GMOA), one of the most influential trade unions in the healthcare sector, has issued its own warning to the authorities. Dr. Chamil Wijesinghe, the organisation’s media spokesperson, has demanded the issuance of a revised circular that clearly sets out the amended guidelines on doctors’ overtime and holiday allowances.

According to the GMOA, a failure to resolve this issue within the coming week could lead to yet another phase of trade union activity, compounding the existing unrest.

Active southwest monsoon affects weather: Heavy falls above 100 mm expected (May 27)

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Active southwest monsoon affects weather: Heavy falls above 100 mm expected (May 27)

May 27, Colombo (LNW): Due to the influence of the active southwest monsoon weather condition, showery weather over the Western, and Sabaragamuwa provinces and in Galle, Matara, Nuwara-Eliya and Kandy districts is likely to enhance during the next few days, the Department of Meteorology said in its daily weather forecast today (27).

Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts.

Heavy falls above 100 mm are likely at some places in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts.

A few showers may occur elsewhere.

Strong winds of about (40-50) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Hambantota and Trincomalee districts.

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 or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. Showers or thundershowers may occur at a few places over the other sea areas around the island.

Winds:
Winds will be south-westerly in the sea areas around the island.
Wind speed will be (40-50) kmph and wind speed may increase up to (60-70) kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambanthota.

Wind speed will be (30-40) kmph in the other sea areas around the island. Wind speed may increase up to (50-60) kmph at times in the sea areas off the coast extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambanthota will be very rough at times and Naval and fishing communities are advised not to venture into these sea areas, until further notice.

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

The wave height (about 2.5 m – 3.0 m) may increase in the sea areas off the coast extending from Mannar to Pottuvil via Puttalam, Colombo, Galle and Hambantota.

There is a possibility that near shore sea areas off the coast extending from Mannar to Pottuvil via Puttalam, Colombo, Galle and Hambantota may experience surges due to swell waves.

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

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Airport Tender Delay Raises Questions Over Mismanagement and Public Loss

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Airport Tender Delay Raises Questions Over Mismanagement and Public Loss

May 27, Colombo (LNW): Concerns are mounting over a significant delay in awarding a major infrastructure contract aimed at upgrading passenger services at Sri Lanka’s Bandaranaike International Airport (BIA) in Katunayake.

The delay, which has stalled improvements to vital check-in and boarding facilities, is reportedly causing mounting financial losses and has now drawn scrutiny over suspected procedural irregularities.

The project in question is designed to expand the airport’s capacity to accommodate the rising number of travellers, especially in light of the recent surge in tourist arrivals.

Despite this urgent need, the procurement process has reached a virtual standstill, with allegations surfacing that the government may be incurring avoidable financial damage as a result.

The contract, valued at billions of rupees, was originally tendered in early 2024. The lowest bid—amounting to approximately Rs. 5.97 billion—was submitted jointly by a Sri Lankan firm, Consulting Engineers and Contractors (Pvt) Ltd (CEC), and China Association of International Engineering Consultants (CAIEC). Their joint venture narrowly beat the second-lowest proposal, submitted by Sanken Construction (Pvt) Ltd, which came in at Rs. 6.36 billion—a difference of Rs. 392 million.

Several other prominent firms, including Maga Engineering, China Civil Engineering Corporation, and a joint bid from Thudawe and China Harbour, also participated, with offers ranging up to Rs. 7.7 billion.

However, on 18 March 2024, a letter issued by the Secretary to the Ministry of Ports, Shipping and Civil Aviation indicated that the CEC–CAIEC bid was disqualified on the grounds of failing to meet a “mandatory requirement.” The nature of this requirement was not clarified in the communication.

Following this, CEC sought clarification from both the Ministry of Transport and the Procurement Appeal Board. They were later informed that their bid had failed to qualify for “Domestic Preference” under a clause in the national procurement framework.

This was despite prior confirmation during a pre-bid meeting in December 2023 that joint ventures with a 51:49 split in favour of local ownership would be recognised as local bidders—a structure that the CEC–CAIEC partnership adheres to.

Industry insiders have voiced concern that this reasoning appears inconsistent with the earlier guidance provided to bidders. There is now growing pressure on authorities to explain why the tender was not referred back to the technical evaluation committee for a proper reassessment.

The situation has been further complicated by legal action initiated by Sanken Construction, which has effectively halted the tender process for nearly a year. Critics argue that awarding the project to the second-lowest bidder, at a considerably higher cost, would not only represent poor financial stewardship but may also point to undue interference from politically connected individuals in the former administration.

With the new government pledging to root out inefficiency and corruption in public spending, calls are intensifying for immediate intervention. Stakeholders argue that restarting the entire procurement process from scratch would not only delay much-needed airport upgrades but also risk exacerbating the financial burden on the state, particularly at a time when foreign tourism is poised to play a central role in economic recovery.

Delays in implementing the project are also believed to be harming Sri Lanka’s global image as a travel destination. Prolonged congestion and outdated facilities at the island’s primary international gateway could deter future visitors, undercutting the efforts of the tourism sector and slowing the flow of much-needed foreign exchange.

Ultimately, the cost of these administrative and political mishandlings is expected to fall squarely on the shoulders of the public. As government expenditure rises without proportional returns, questions are increasingly being asked about accountability, transparency, and the real cost of missed opportunities.

GACC Compliance Key to Boosting Sri Lanka’s Agricultural Exports to China

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GACC Compliance Key to Boosting Sri Lanka’s Agricultural Exports to China

By: Staff Writer

May 26, Colombo (LNW): Sri Lanka is intensifying efforts to streamline agricultural exports to China, with a renewed focus on meeting stringent Chinese import regulations.

This strategic move comes as China remains a key destination for Sri Lankan produce, particularly in the agricultural sector. In 2024, Sri Lanka exported goods worth $261.06 million to China, with “coffee, tea, maté, and spices” standing out as the leading category among agricultural exports.

To enhance access to this lucrative market, the Sri Lanka Export Development Board (EDB), in collaboration with the National Plant Quarantine Service (NPQS), recently conducted an awareness session on the General Administration of Customs of China (GACC) registration process.

This session followed issues raised by exporters during the 24th Exporters’ Forum, particularly by the Spices and Allied Products Traders’ Association (SAPPTA), regarding challenges in navigating the complex GACC procedures.

GACC registration is a mandatory requirement for a broad spectrum of goods entering the Chinese market—including food, pharmaceuticals, electronics, cosmetics, and most crucially, agricultural products. For Sri Lankan agricultural exporters, compliance hinges on meeting three key criteria: food safety, plant health, and traceability.

The recent session attracted over 100 industry stakeholders, underscoring the export community’s growing interest in strengthening trade ties with China.

It featured detailed presentations from NPQS Additional Director and Head of the National Plant Protection Organization (NPPO) G.G.D. Lalani, and M.F.M. Rizwan, Head of the Plant Quarantine Operations Division. Both experts offered step-by-step guidance on the GACC process, enabling exporters to better understand and implement the necessary compliance measures.

To date, NPQS has successfully facilitated the registration of 188 firms, including the certification of their cultivation sites, signaling notable progress in aligning Sri Lanka’s agricultural practices with Chinese regulatory standards.

This progress is particularly timely, as Sri Lanka seeks to expand exports of high-potential products such as Ceylon cinnamon, fresh pineapples, and seafood—commodities that are gaining traction among Chinese consumers.

While the trade relationship between the two nations shows promise, a significant trade imbalance remains—China exports far more to Sri Lanka than it imports. However, aligning with China’s import protocols through initiatives like the GACC registration process is a critical step in narrowing this gap and positioning Sri Lanka as a trusted supplier of premium agricultural goods.

Through continued education and regulatory compliance, Sri Lanka aims not only to protect its existing export base but also to unlock new market opportunities across China’s vast consumer landscape.

Sri Lanka Tea Exports Hit US $477Mn as April Crop Reaches five-year high

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Sri Lanka Tea Exports Hit US $477Mn as April Crop Reaches five-year high

By: Staff Writer

May 26, Colombo (LNW): Sri Lanka’s tea industry is experiencing a remarkable resurgence in 2025, with both production and export earnings showing significant year-on-year gains.

According to data released by Asia Siyaka Commodities PLC and Forbes & Walker Tea Brokers, tea production in April reached a five-year high of 26.39 million kilograms, marking a sharp 22.96% increase compared to the same month last year.

The surge was driven by notable gains across all three main tea-growing elevations. Low Growns led the growth, rising from 48.5 million kilograms to 51.6 million kilograms.

High Growns also saw strong performance with a 17% year-on-year increase, climbing from 17.3 million kilograms to 20.2 million kilograms. Medium Growns followed with a 15% rise, growing from 14.3 million kilograms to 16.4 million kilograms.

The cumulative tea output for the first four months of 2025 stood at 89.38 million kilograms, up 12.10% or 9.65 million kilograms compared to the same period last year. While this marks a healthy recovery, production still remains below the 2021 January-April figure of 104 million kilograms.

On the export front, the industry also recorded encouraging results. Total export earnings from January to April reached USD 477.88 million, reflecting a 6.15% increase year-on-year. Export volumes rose by 3.44% to 81.41 million kilograms, and the average price per kilogram also climbed by 2.62%, reaching USD 5.87 on a Free on Board (FOB) basis.

April alone generated USD 107.41 million in tea export revenue, up 12.5% from the same month in 2024. Monthly export volumes saw a similar trend, rising by 11.17% to 18.21 million kilograms.

The average export price for April stood at USD 5.90 per kilogram, a 1.20% year-on-year increase. However, market analysts have noted a slight deceleration in month-on-month growth, suggesting cautious optimism as the year progresses.

The international market remains highly responsive to Sri Lankan tea. The top ten export destinations for the first four months of 2025 include Iraq, Libya, Russia, the UAE, Turkey, Iran, Chile, China, Saudi Arabia, and Germany, with Iraq importing the highest volume at 11.53 million kilograms.

According to the Central Bank of Sri Lanka, tea remained the country’s fourth-largest foreign exchange earner in 2024, following worker remittances, textile and garment exports, and tourism. With improved climatic conditions and rising global demand, the tea sector appears poised to remain a key pillar of the national economy in 2025.

Browns Marks 150 Years with Bold Moves in Tea, Sustainability and Port City Ventures

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Browns Marks 150 Years with Bold Moves in Tea, Sustainability and Port City Ventures

By: Staff Writer

May 26, Colombo (LNW): Browns, one of Sri Lanka’s most enduring and diversified conglomerates, has marked its 150th anniversary with a renewed commitment to innovation, global leadership, and sustainable development. As the company reflects on a rich legacy dating back to 1875, it also unveiled its latest initiatives aimed at shaping the country’s future and expanding its international presence.

Founded as a mechanical engineering workshop supporting the plantation sector, Brown & Company has grown into a dynamic group active across key industries including agriculture, plantations, automotive, construction, engineering, pharmaceuticals, leisure, manufacturing, and power generation. Today, Browns is a flagship entity within the LOLC Group.

A cornerstone of its recent success is the landmark acquisition of Lipton Teas and Infusions, which has significantly bolstered Browns’ status as the world’s largest tea producer and exporter. With a robust operational base in Sri Lanka and Africa, this acquisition strategically integrates Sri Lanka’s tea heritage with East African cultivation, enhancing both global reach and product diversity.

In the agriculture sector, Browns continues to break new ground. Its Veterinary Pharmaceuticals Division made history in 2022 by becoming the first in Sri Lanka to achieve ISO 14001 certification for environmental management. The division also earned ISO 9001 certification, reinforcing Browns’ reputation for quality and sustainability in agri-based solutions.

Another ambitious initiative reshaping Browns’ future is its role as the largest Sri Lankan investor in the luxury Marina Development at Colombo Port City. This visionary project marks a significant step in transforming the urban landscape and strengthening Sri Lanka’s position as a regional maritime and investment hub.

Chairman Ishara Nanayakkara reflected on the company’s journey: “For 150 years, Brown & Company has played a vital role in Sri Lanka’s growth. From humble beginnings to pioneering global initiatives, our commitment to resilience, innovation, and trust remains unchanged. Today, we are not only celebrating our history—we are actively building the future.”

Sustainability is deeply embedded in Browns’ strategy. From promoting renewable energy and eco-friendly business practices to advocating sustainable agriculture, the company is aligning its long-term growth with environmental and social responsibility.

LOLC Holdings Group Managing Director and Browns Director Kapila Jayawardena added, “Browns has consistently set the benchmark for excellence and innovation. Our current ventures—from global tea leadership to futuristic infrastructure development—demonstrate our readiness to lead in the next era of economic transformation.”

As Browns embarks on its next chapter, it does so with a clear purpose: to honor its legacy while driving progress. With strong leadership, bold investments, and a commitment to uplifting communities, Browns celebrates 150 years not just as a milestone—but as a launchpad for the future.

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