May 21, Colombo (LNW): The Department of Labour has announced a temporary suspension of several critical services related to the Employees’ Provident Fund (EPF) due to essential maintenance work on its computer database. The suspension will be effective from May 21 to 23, 2025, impacting Labour Offices across the country.
This urgent system maintenance is necessary to upgrade and secure the EPF’s digital infrastructure, ensuring smoother and more reliable services for the future, according to the Commissioner General of Labour.
During this period, the following EPF-related services will be unavailable:
Payment of EPF Full Benefits (K Applications)
Payment of EPF Deceased Member Benefits (L Applications)
Payment of EPF 30 per cent Withdrawals
AH Registrations
Registration of New Institutions
Amendment of B Cards
Clients who had made appointments in advance for these services via the EPF hotline (011 2201201) will be given priority once operations resume after the scheduled downtime.
The Department has apologised for any inconvenience caused and assures the public that all services will be promptly restored once maintenance work is completed. Clients seeking further information or assistance are encouraged to contact their nearest Labour Office or visit the official Department of Labour website.
The temporary service disruption highlights the growing need for digital system upgrades across public sector institutions, particularly those responsible for vital financial and retirement services. With over 2.5 million members relying on EPF services for their retirement security, efficient database management and timely access are crucial.
May 21, Colombo (LNW): The Committee on Public Enterprises (CoPE) has unveiled a series of concerning revelations regarding the ongoing financial losses and administrative misconduct at Sri Jayewardenepura General Hospital, one of Sri Lanka’s flagship state-run medical institutions.
The findings emerged during a recent COPE session chaired by MP Dr. Nishantha Samaraweera, where the 2022 and 2023 Auditor General’s reports and the hospital’s current performance were examined.
Despite its long-standing reputation and infrastructure, the hospital is reportedly operating at a sustained financial loss. CoPE identified multiple contributing factors, including the provision of treatment to patients without payment and instances where fees that should have been collected were instead waived without proper justification.
One of the more pressing concerns highlighted was the hospital’s inability to generate adequate income from its specialist services, despite paying nearly Rs. 600 million in professional fees to its staff in 2023 alone. It was revealed that the medical equipment used for these services had been sourced from the hospital, yet the institution failed to see a proportional financial return.
Officials also disclosed that the hospital maintains a scheme to offer free treatment to clergy, staff family members, and retired employees—though the latter benefit is capped at Rs. 4,000. While such practices may reflect humanitarian intentions, CoPE members questioned the financial viability of these subsidies without proper cost recovery mechanisms in place.
In addition to financial issues, COPE raised serious concerns about irregular appointments and staffing practices. It was revealed that several individuals were recruited to unauthorised posts during the pre-election period, receiving a 35% salary allowance without legal approval. In stark contrast, no salary was paid for the legally sanctioned position of “Laundry Inspector,” indicating a complete breakdown of internal controls.
The Auditor General’s Department further noted that employee appointments, salary disbursements, and monitoring systems were inadequately managed, allowing for the proliferation of illegal payments. COPE has instructed that a comprehensive internal investigation be launched, with a full report to be submitted within two months.
The committee also scrutinised a contract signed in 2015 to implement an electronic document management system for the hospital’s Board of Directors. It was shockingly revealed that the contract had been awarded to a company in which the wife of a then hospital director was a board member—raising significant conflict of interest concerns. Even more troubling, the company had been registered just one day prior to being awarded the contract.
Mismanagement was further evidenced by a procurement scandal involving television sets intended for the hospital wards. Although approval had been obtained for 25 televisions of 32-inch size, the hospital instead purchased 43-inch sets at a higher price. As of 30 April 2025, only six of these units had actually been installed and used, indicating wasteful expenditure and poor planning.
In light of these troubling disclosures, CoPE has announced plans to summon the hospital’s former chairman and board of directors for further inquiry. The committee stressed the urgent need to enforce accountability and restore both administrative order and fiscal discipline at the hospital.
Members of Parliament who participated in the session included Nalin Bandara, S. M. Marikkar, Samanmalee Gunasinghe, Sunil Rajapaksha, Asitha Niroshana Egoda Vithana, Chandima Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.
May 21, Colombo (LNW): In a move that has shocked both workers and trade unions, the NEXT garment factory located in the Katunayake Free Trade Zone has abruptly ceased operations, reportedly without any prior warning to its workforce.
Over 1,400 employees have been left without jobs or explanations, raising serious concerns about corporate responsibility, legal protections, and economic stability in Sri Lanka’s critical garment sector.
The factory premises were sealed earlier this week, with only private security personnel now stationed at the gates, according to initial reports. Workers arriving for duty were reportedly turned away, with no official communication from the company regarding the shutdown, severance packages, or future job placements.
“This was completely unexpected. We came to work and found the gates locked,” said one long-serving employee on the condition of anonymity. “We have families, loans, and no answers. This is inhumane.”
Trade unions and labour rights groups have condemned the manner of the closure, calling it a gross violation of labour laws and ethical standards. The Free Trade Zones & General Services Employees Union (FTZ&GSEU) has demanded immediate government intervention to investigate the circumstances and ensure that the rights of the workers are protected.
The sudden and opaque nature of this shutdown has called that reputation into question, prompting demands for accountability not only from the company but also from its international partners.
The garment and apparel industry is one of Sri Lanka’s largest foreign exchange earners, employing hundreds of thousands, primarily women, across various Export Processing Zones (EPZs).
A disruption on this scale could have ripple effects across the industry — undermining investor confidence and exacerbating social vulnerabilities at a time when the country is still grappling with the aftermath of an economic crisis, labour experts pointed out.
May 21, Colombo (LNW): President Anura Kumara Dissanayake has directed the formation of a special committee under the Presidential Secretariat to investigate longstanding allegations of corruption and mismanagement at SriLankan Airlines.
The directive comes amid renewed efforts to salvage the financially troubled national carrier without further dependence on state funds.
The decision was announced following an extensive four-hour meeting held on Monday at the Presidential Secretariat, which included the airline’s Board of Directors and representatives from all affiliated trade unions.
According to a statement from the President’s Media Division (PMD), the meeting was convened to forge a path toward sustainable reform under continued government ownership.
During the discussions, President Dissanayake stressed the urgency of institutional accountability and financial self-reliance, ruling out any future financial bailouts from the General Treasury.
“We cannot continue to fund inefficiency,” the President reportedly told attendees, highlighting that the national carrier must now stand on its own through improved management and internal discipline.
He further insisted that the national airline must be rebuilt through a collective effort, with all stakeholders — including employees and management — taking shared responsibility for its recovery.
The President underlined that this restructuring process is part of the government’s broader strategy to pull the country out of its economic crisis, noting that difficult sacrifices must be made across the board.
The meeting also focused on the implementation of a newly developed business plan aligned with the government’s policy to retain SriLankan Airlines as a state-owned entity.
The plan reportedly centres on operational efficiency, restructuring debt, cutting non-essential expenditure, and revitalising revenue streams such as cargo and tourism-related partnerships.
In a significant show of consensus, representatives from the airline’s major trade unions — including pilots, engineers, technicians, executives, and general staff — expressed their willingness to support the government’s vision.
They affirmed their readiness to work collaboratively toward restoring the airline’s financial health, with some suggesting the establishment of performance-based incentives as a way to motivate internal reform.
SriLankan Airlines has been operating at a loss for several years, weighed down by mounting debt, alleged procurement scandals, and successive failed privatisation attempts.
Calls for transparency intensified after previous reports hinted at irregularities in leasing arrangements, aircraft maintenance contracts, and recruitment practices.
The new investigative committee, expected to be announced in the coming days, will reportedly be tasked with auditing past financial decisions, identifying irregular procurement deals, and recommending actionable measures to hold those responsible to account.
The committee’s findings are likely to carry significant political and legal implications as the administration seeks to demonstrate its commitment to good governance.
Present at the meeting were SriLankan Airlines Chairman Sarath Ganegoda, board members, and representatives from the SriLankan Pilots’ Association, Licensed Aircraft Engineers’ Association, Airline Employees’ Association, SriLankan Airlines Technicians’ Association, Freelance Employees’ Association, Executives’ Association, and the Inter-Company Employees’ Association.
May 21, Colombo (LNW): South-West monsoon conditions are gradually getting established over the island, and showers or thundershowers, therefore, will occur at times in Western, Sabaragamuwa, North-western and Central provinces and in Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (21).
Fairly heavy falls above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle, Matara, Puttalam, Nuwara-Eliya and Kandy districts.
A few showers may occur in North-central province.
Showers or thundershowers may occur at a few places in Uva province and in Ampara district during the evening 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, North-western and Southern 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 or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle.
Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to (55-65) 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 can increase up to (50-55) 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 rough at times. The sea areas off the coast extending from Chilaw to Galle via Colombo 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 Puttalam to Pottuvil via Colombo, Galle and Hambantota (this is not for land area).
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.
The NSBM Open Day for the May 2025 Intake, held on the 16th and 17th of May at the NSBM Green University premises in Homagama, was a resounding success. The event welcomed a large number of prospective students and parents who explored the university’s world-class facilities and academic offerings aligned with international standards.
Most importantly, over 200 after A/L students took this opportunity to meet with NSBM’s experienced academic panel and register on the spot for undergraduate degree programmes in Business, Computing, Engineering, and Science.
To secure your place in the NSBM May 2025 Intake, call 011 544 5000 or WhatsApp your details to 071 244 5000 today!
May 20, Colombo (LNW): Once a thriving hub of industry and enterprise, Sri Lanka is now reeling from the harsh fallout of its worst economic crisis in decades. Across the island, factories have gone silent, shops have shuttered, and thousands of livelihoods have vanished. The private sector—the engine of employment and growth—has taken a crushing blow, forcing businesses to close and pushing families into debt and despair.
According to the Department of Census and Statistics, 15.1% of Sri Lankans lost their jobs in 2023 alone, as the economic meltdown triggered mass layoffs and factory closures. The job losses hit men harder than women, with more male workers losing their main or secondary sources of income.
The ripple effects have been devastating. Over 60.5% of households saw a decline in monthly income, while 91.1% reported higher expenses, particularly on food, transport, and healthcare. As inflation soared and the cost of living skyrocketed, nearly a quarter of households were forced into debt. Meanwhile, 7% of the population couldn’t afford proper healthcare, further deepening the social impact of the crisis.
Sri Lanka’s business sector, especially small and medium-sized enterprises (SMEs), bore the brunt of the collapse. Many were forced to shut down or downsize due to fuel shortages, import restrictions, and a lack of access to affordable credit. Export-oriented factories in key industrial zones such as Katunayake and Biyagama were particularly hard hit, as global demand wavered and production costs surged.
In the absence of foreign currency, companies struggled to import raw materials, stalling production lines and severing supply chains. A wave of closures followed, with an estimated 30% of SMEs either ceasing operations or drastically cutting back.
This economic crisis has not only crippled business but also eroded the foundations of daily life. The government now faces the urgent challenge of restoring economic stability, attracting investment, and reviving local industry. Without bold reforms and international support, Sri Lanka risks long-term stagnation and further loss of livelihoods.
May 20, Colombo (LNW): Moody’s recent downgrade of the United States’ long-term credit rating has raised fresh concerns in Sri Lanka over the safety and valuation of its foreign reserves, much of which are invested in U.S. Treasuries. In response, the Lanka Rating Agency (LRA) has issued a statement confirming it is closely monitoring the potential implications of the downgrade on the country’s financial stability.
On May 16, 2025, Moody’s Investors Service cut the U.S. government’s long-term issuer and senior unsecured debt ratings from Aaa to Aa1, citing rising debt levels, growing interest burdens, and a weakening fiscal outlook.
The outlook has been revised from “negative” to “stable,” signaling that while immediate further deterioration is not expected, the downgrade reflects persistent structural challenges in the U.S. economy.
The move means the United States has now lost its triple-A rating from all three major global credit rating agencies—Moody’s, Fitch, and S&P.
This development is significant for Sri Lanka, which holds a notable portion of its foreign exchange reserves in U.S. government securities. Traditionally considered one of the safest assets, the downgrade introduces new risk perceptions that could impact the value of Sri Lanka’s reserves and its overall reserve management strategy.
In a statement, the Lanka Rating Agency said it is “actively assessing the impact of this development on local financial markets and reserve management strategies,” urging Sri Lankan policymakers and financial stakeholders to remain vigilant.
“Given Sri Lanka’s economic recovery is still at a delicate stage, any shift in global risk sentiment can have a ripple effect on our foreign reserves, exchange rate, and debt servicing capacity,” an LRA spokesperson noted.
Sri Lanka, which is navigating post-crisis economic reforms under an International Monetary Fund (IMF) program, relies heavily on the stability of its reserve assets to manage external obligations and currency pressures. A downgrade in the creditworthiness of U.S. Treasuries could prompt a reassessment of risk-adjusted returns and encourage discussions around diversifying reserves.
While the downgrade does not indicate a default risk by the U.S., it reflects broader concerns about fiscal management and political uncertainty in Washington—factors that can indirectly influence emerging markets like Sri Lanka.
LRA reaffirmed its commitment to providing independent, internationally aligned credit assessments to support informed decision-making. The agency will continue to track global developments and provide guidance on their implications for Sri Lanka’s financial system.
May 20, Colombo (LNW): UK authorities are providing support to a British woman arrested in Sri Lanka, as reports emerge that she has been accused of attempting to smuggle a significant quantity of cannabis into the country.
Charlotte May Lee, 21, from Coulsdon in south London, was reportedly detained on Monday at Colombo’s Bandaranaike International Airport after arriving on a flight from Bangkok. According to local reports, Sri Lankan authorities allege she tried to smuggle two suitcases containing 46kg (101lbs) of “kush,” a potent and dangerous strain of cannabis.
The UK’s Foreign, Commonwealth and Development Office confirmed its involvement, stating: “We are supporting a British woman who has been arrested in Sri Lanka and are in contact with her family and the local authorities.”
Kush is not just a form of cannabis; it is often laced with other harmful substances such as fentanyl, tramadol, and formaldehyde. This highly addictive synthetic blend has caused a public health crisis in parts of West Africa, with reports suggesting it may be responsible for dozens of deaths and thousands of hospitalisations weekly in countries like Sierra Leone.
Lee, a former TUI cabin crew member, had more recently been working as a beautician. Her case draws parallels with that of another young British woman, Bella Culley, who is currently being held in Georgia under suspicion of drug offences.
Culley, 18, had initially been reported missing in Thailand before Georgian authorities announced she had been arrested in Tbilisi on 10 May. During a court appearance earlier this week, she faced accusations of purchasing, possessing, and importing large quantities of drugs, including marijuana.
Georgian police said they had seized 12kg (26lbs) of marijuana and just over 2kg (4.4lbs) of hashish from a travel bag at Tbilisi International Airport.
Before her arrest, Culley had reportedly travelled from the Philippines to Thailand in early May. Her family had expressed concern over her whereabouts until Georgian authorities confirmed her detention.
Culley is the great-granddaughter of former Labour MP Frank Cook, who represented Stockton North for 27 years and once served as a deputy speaker in the House of Commons. He passed away in 2012 at the age of 76 after battling lung cancer.
Both cases highlight the growing concern over drug trafficking involving young British nationals overseas and the complex legal challenges they may face abroad.
May 20, Colombo (LNW):In a move that could significantly reshape its investment climate, the Sri Lankan government is planning to curtail generous tax concessions granted to mega development ventures — including those within the Colombo Port City — in a bid to boost state revenue and meet International Monetary Fund (IMF) requirements.
The strategic policy shift reflects growing concern over the long-term fiscal impact of tax holidays granted under the Strategic Development Act (SDA) and the Colombo Port City framework, which have been criticized for undermining the country’s ability to repay debt and stabilize public finances.
The proposed changes come as part of a broader effort by the government to align with IMF recommendations aimed at improving Sri Lanka’s fiscal management and reducing its public debt burden.
The IMF has repeatedly expressed concern over the scale and duration of tax incentives granted to investors, warning that such concessions severely constrain the state’s capacity to generate adequate revenue, particularly during its ongoing economic crisis.
The Colombo Port City, a high-profile initiative intended to transform Sri Lanka into a regional financial hub, has been at the center of this debate. The project currently enjoys sweeping tax exemptions, including waivers on customs duties, the Ports and Airports Development Levy, VAT, and various other levies.
Under the existing Port City Act, the Colombo Port City Commission has the authority to grant tax holidays of up to 40 years to businesses deemed of “strategic importance.” Such businesses are recognized by the Commission in consultation with the President or relevant minister, based on their potential economic or social contribution.
However, the IMF argues that many of these tax incentives lack transparency and fail to deliver tangible benefits to the broader economy.
Its 2023 Governance Diagnostic Assessment report recommended the suspension of the SDA and related tax breaks, urging the government to introduce a new, more targeted framework under a proposed Priority Investment Project Act.
This would replace existing legislation and introduce clearer, rule-based criteria for determining eligible investments.
In line with this recommendation, the Finance Ministry now plans to introduce amendments to the SDA by August this year. These amendments will limit the length of tax holidays and may introduce new taxes specifically targeting Port City investors. Until these criteria are formalized, all actions under the SDA will be suspended.
Officials say the revised approach will focus on ensuring that tax incentives are strategically allocated and time-bound, with a view to maximizing net economic benefits. A senior finance ministry official confirmed that the government aims to implement a rules-based system with transparent eligibility criteria by the end of September 2025
