January 23, Colombo (LNW): Showers will occur at times in Uva province and in Ampara, Batticaloa, Matale, Nuwara-Eliya, Hambantota and Matara districts, and several spells of showers may occur in Northern and North-Central provinces and in Trincomalee district, the Department of Meteorology said in its daily weather forecast today (23).
Showers or thundershowers will occur at several places elsewhere in the evening or night.
Fairly heavy showers about 50 mm can be expected at some places in Southern and Sabaragamuwa provinces.
Fairly strong winds of (30-40) kmph can be expected at times over Eastern slope of the central hills and Northern, North-central, Eastern and North-western provinces and in Matale, Hambantota and Monaragala districts.
Misty conditions can be expected at some places in Sabaragamuwa and Western provinces and in Galle district during the morning.
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 times in the sea areas off the coasts extending from Trincomalee to Colombo via Batticaloa, Pottuvil, Hambantota and Galle.
Winds:
Winds will be north-easterly and speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
January 22, Colombo (LNW): In recent years, Sri Lanka’s central bank has made significant strides toward stabilizing the economy and rebuilding its foreign reserves after grappling with a severe financial crisis. Through prudent deflationary policies and strategic interventions, the central bank has managed to reverse negative trends in its net foreign assets, marking a promising step in the country’s economic recovery.
This data examines the key developments in the central bank’s efforts and the broader implications for Sri Lanka’s financial stability.
Sri Lanka’s central bank reported net foreign assets rising to approximately 310 million US dollars in November 2024, according to official data. This increase stems from the bank’s direct foreign exchange purchases under deflationary policies and its efforts to settle reserve-related liabilities.
Net foreign assets grew from 18.6 billion rupees (about $63 million) in September 2024 to 91 billion rupees by November 2024, as central bank statistics reveal. However, this marks a stark contrast to the situation in August 2021, when net foreign assets turned negative due to the bank’s reliance on borrowed reserves to fund imports and counteract inflationary open market operations aimed at suppressing market interest rates.
By November 2024, Sri Lanka’s gross official reserves—including the central bank’s gross reserves (which include a Chinese currency swap) and Treasury balances—amounted to 6.4 billion US dollars. Previously, the central bank’s policy of using reserves while maintaining low policy rates had exacerbated currency volatility, resulting in a crisis comparable to those seen in parts of Latin America.
During the height of the crisis, Sri Lanka turned to the International Monetary Fund, utilized a special drawing rights allocation, and delayed Asian Clearing Union payments to manage its import needs. Some reserves were also used to settle government debt obligations. By the last quarter of 2022, negative net foreign assets had reached a peak deficit of 4.5 billion US dollars. However, as deflationary policies took effect and private credit demand slowed, the situation gradually improved, reducing quasi-fiscal losses.
The reversal was further supported by the appreciation of the exchange rate under tightened monetary policy. Over the past two years, the central bank has repaid loans from the IMF and the Reserve Bank of India while purchasing dollars through deflationary strategies, which involved selling down Treasury bills to the banking sector.
Despite these gains, concerns arose in October 2024 regarding excess liquidity caused by open market operations. Warnings have been issued that continued liquidity injections could lead to reserve losses and a potential second default as private credit begins to recover.
January 22, Colombo (LNW): Sri Lanka’s rich legacy of producing world-class tea is receiving renewed global attention as a delegation of UK tea industry specialists visits the island to forge deeper connections.
Renowned for its diverse and high-quality teas, Sri Lanka is showcasing its artisanal craftsmanship and sustainability-focused practices to buyers eager to explore the potential for mutually beneficial partnerships.
This week, a delegation of experts and specialists from the UK tea industry arrived in Sri Lanka to strengthen ties with local specialty tea producers and explore new business opportunities.
Organized under the UK Government-funded Trade Partnerships (UKTP) program and implemented by the International Trade Centre (ITC), the mission connects 12 UK tea companies with producers and processors from Sri Lanka’s low, mid, and upcountry regions. The delegation is exploring the unique flavors and variations influenced by the country’s diverse climatic conditions.
During the visit, buyers will experience artisanal harvesting methods and distinctive processing techniques used to craft premium, curated teas. They will also gain insights into the environmental, ethical, and social practices that define each tea producer’s approach.
Jarmila Sarda, UKTP Program Manager, highlighted the mission’s importance: “This trade mission provides a valuable opportunity for United Kingdom tea buyers to directly engage with high-quality Sri Lankan tea producers.
By fostering these direct connections, we aim to strengthen trade relationships and contribute to the sustainable growth of both the United Kingdom and Sri Lankan tea sectors.”
To further enhance networking and collaboration, a tea reception hosted by the British High Commission in Colombo brought together UK buyers and Sri Lankan stakeholders, including members of the Ceylon Artisanal Tea Association (CATA). British High Commissioner Andrew Patrick expressed optimism about the event’s outcomes:
“It is great to welcome a delegation of UK tea buyers here in Sri Lanka – a demonstration of our shared love for high-quality, specialty tea. I hope that over the course of the week, new and fruitful partnerships will be created to further strengthen the UK-Sri Lanka trade relationship.”
The initiative underscores the UKTP program’s dedication to expanding trade opportunities and promoting sustainable growth in Sri Lanka’s tea industry.
As part of its broader mission, UKTP supports developing countries by unlocking trade potential in key sectors, bridging markets, and fostering lasting partnerships.
Funded by the UK’s Foreign, Commonwealth & Development Office, UKTP also implements trade promotion and capacity-building initiatives worldwide.
Partnering with government agencies, private sector organizations, and SMEs, the program advances sustainable development in line with the United Nations’ Sustainable Development Goals.
By connecting the UK and Sri Lanka’s tea industries, this mission paves the way for enhanced collaboration, showcasing Sri Lanka’s rich tea heritage while contributing to global trade growth.
January 22, Colombo (LNW): The Port of Colombo achieved remarkable growth in 2024, with transshipment volumes rising 9.7% year-on-year (YoY) to a record 6.31 million twenty-foot equivalent units (TEUs), constituting 81% of the port’s container throughput.
This surge was partly driven by disruptions from the Red Sea crisis, which elevated the port’s role as a key transshipment hub.
Overall container throughput reached an unprecedented 7.78 million TEUs, marking a 12.1% YoY increase compared to the 6.91 million TEUs recorded in 2023. December alone saw transshipment volumes grow 5.4% YoY to 544,266 TEUs, continuing the upward trend.
Looking ahead, the Sri Lanka Ports Authority (SLPA) aims to exceed nine million TEUs in 2025. Expansions at the East Container Terminal (ECT) and Colombo West International Terminal (CWIT) are expected to increase capacity to over 10 million TEUs within the year.
Import container volumes rose by 23.5% YoY to 541,155 TEUs, while export container volumes grew by 6.2% YoY to 301,094 TEUs. Notably, restowing volumes hit a record high, climbing 49.6% YoY to 307,619 TEUs.
Among the port’s terminals, Colombo International Container Terminals (CICT), the sole fully operational deep-water terminal, handled 3.22 million TEUs, reflecting a modest 4.1% YoY growth.
The SLPA-operated Jaya Container Terminal (JCT) and the partially operational ECT processed 2.41 million TEUs, a significant 22.8% increase from 2023. The South Asia Gateway Terminal (SAGT) also showed robust growth, handling 2.02 million TEUs, up 14.9% YoY.
However, the number of container ships calling at the port fell by 9.5% YoY to 3,522, as some shipping lines rerouted vessels due to congestion and operational inefficiencies. The total number of ships visiting the port dropped 6.3% YoY to 3,968.
Conversely, conventional cargo and bunkering operations recorded strong growth, with conventional cargo vessels rising 68.8% YoY to 54 and bunkering ships increasing 68.2% YoY to 74, reflecting heightened demand for refueling.
The Red Sea crisis significantly boosted the port’s role as a transit point for rerouted shipping lines, particularly those avoiding disruptions and high insurance costs linked to Yemen’s Houthi conflict.
However, this boom period was followed by challenges, including severe congestion aggravated by trade union actions at Sri Lanka Customs.
These issues led to operational delays, reduced efficiency, and some shipping lines rerouting services. Despite these setbacks, congestion eased towards the end of the year, positioning the Port of Colombo for further growth in 2025.
January 22, Colombo (LNW): Joint Apparel Association Forum (JAAF), has emphasized the need of Eravur Textile Manufacturing Zone aims to reduce Sri Lanka’s reliance on imported raw materials, cutting foreign exchange outflows and improving supply chain transparency and traceability.
As Sri Lanka’s tourism industry celebrates a robust resurgence in early January, renewed discussions have emerged about prioritizing tourism investment. However, concerns have been raised about diverting resources from critical initiatives like the Eravur Textile Manufacturing Zone, a long-awaited project essential to the apparel sector’s sustainability and growth.
Spanning 300 acres in Eravur, Batticaloa the zone is designed to support various textile manufacturing verticals, including dyeing, washing, knitting, and weaving.
It features modern amenities like a centralized wastewater treatment plant with pre-cleared environmental approvals, ensuring environmental compliance.
This dedicated facility, conceptualized by the Joint Apparel Association Forum (JAAF), aims to reduce Sri Lanka’s reliance on imported raw materials, cutting foreign exchange outflows and improving supply chain transparency and traceability.
Sri Lanka’s apparel industry, which accounted for 5.8% of GDP in 2023 and generated $4.8 billion in revenue, is the nation’s largest industrial export sector.
With 52.6% of all industrial exports originating from the apparel sector, the industry remains a cornerstone of economic stability and employment, particularly for the blue-collar workforce.
The Eravur zone promises to enhance value addition, as demonstrated by initiatives like the Fabric Park in Thulhiriya, which has already increased domestic fabric availability and improved value addition to around 55%.
Global markets, particularly in the EU, UK, and USA, are increasingly demanding supply chain transparency and sustainable practices. By operationalizing the Eravur zone, Sri Lanka can align with these evolving regulations, positioning its apparel sector as a leader in sustainable and high-value manufacturing.
The zone’s strategic implementation could enable the country to meet ambitious export targets, provide higher-skilled job opportunities, and foster innovation within the industry.
Significant progress has already been made, with investments commencing in Eravur. Notably, Jay Jay Textiles Lanka Ltd. has committed to fabric manufacturing and processing for export.
However, for the initiative to reach its full potential, the government must maintain its momentum, engaging stakeholders to attract further investment and optimize the remaining space within the zone.
The JAAF has emphasized that the industry cannot sustain growth by relying on past strategies. Instead, Sri Lanka must position itself as a leading destination for sustainable ready-made garments and cutting-edge textile solutions. By doing so, the nation can diversify into higher-value products and categories, reinforcing its global competitiveness.
With regulatory changes in key markets expected to intensify by 2030, the operational success of the Eravur Textile Zone is crucial for Sri Lanka to meet these challenges and capitalize on emerging opportunities.
JAAF argues that this project is vital to the future of Sri Lanka’s apparel sector, which has been instrumental in navigating the economic crises of recent years, from the COVID-19 pandemic to the financial struggles of 2022.
The Eravur zone represents more than a manufacturing hub—it is a gateway to securing the apparel industry’s role as a driver of Sri Lanka’s economic growth in the decades ahead. By doubling down on this initiative, the government can ensure that Sri Lanka Apparel continues to thrive as a global leader in innovation, sustainability, and value addition.
January 22, Colombo (LNW): The Customs Trade Union Alliance (CTUA) has formally stated that it will not accept responsibility for the contents of 323 containers that were flagged by the computer system for mandatory inspection but were subsequently cleared and released by the government.
The union raised concerns about the potential for serious issues regarding the safety and legality of the goods in these containers, which were not subjected to the required scrutiny.
CTUA President Amila Sanjeeva addressed the media today (22), making it clear that the union would not be held accountable if any of the 323 containers are found to contain substandard goods.
These could include medicines that have been rejected by the National Medicines Regulatory Authority (NMRA), cosmetic products deemed unsafe for use, illegal cigarettes, prohibited drugs, or even weapons.
The 323 containers, originally flagged with a red label by the customs computer system, were marked for closer inspection due to potential risks.
However, despite this, they were cleared for release without undergoing the thorough checks that the system had indicated were necessary.
Approximately 80 per cent of the goods in these containers were supposed to undergo mandatory customs examination, raising significant alarm over the lack of due diligence in the release process, Sanjeeva pointed out.
The CTUA has called into question the authority of those who authorised the release of these containers.
The union is demanding clarification from the government regarding which legal provisions allowed such a large number of red-labelled containers to bypass inspection.
The decision to clear these containers without proper checks has raised concerns about potential risks to public safety and the integrity of customs operations.
January 22, Colombo (LNW): Renowned Sri Lankan singer Anil Bharathi, known for his powerful voice and timeless contributions to the island’s music scene, has passed away at the age of 75.
He died today (22) while receiving treatment at Panadura Hospital, according to family sources.
Bharathi’s legacy in Sri Lankan music spans several decades, and he is fondly remembered for his unforgettable songs such as “Seethala Sanda Eliye“, “Hiru Ipadena Wita“, “Bethlehem Pure“, “Irudina Pamanak Nowa“, “Sandai Tharui“, “Punsadna Paya“, “Ma Adara Nangiye“, “Bambareku Aduna“, “Ada Wei Iru Dina” and many others.
His melodious voice and emotive performances endeared him to generations of listeners, cementing his place as a beloved figure in the local music industry.
In addition to his successful music career, Bharathi was a prominent figure in the broadcasting world. He dedicated 50 years of his life to the Sri Lanka Broadcasting Corporation (SLBC), where he made significant contributions as a news anchor and programme presenter.
His expertise and commitment to his work also led him to serve as the Director of SLBC, where he played a pivotal role in shaping the direction of the station.
Bharathi will be remembered not only for his melodious voice but also for his dedication to his craft and his service to the nation through his work at SLBC.
January 22, Colombo (LNW): President Anura Kumara Dissanayake has announced that vehicle permit holders will be given a chance to import vehicles when the country resumes vehicle imports, following a five-year hiatus.
Speaking on the Satana programme on Sirasa TV, the President outlined the rationale behind this decision and the careful steps being taken to manage its potential economic impact.
In 2018, Sri Lanka’s vehicle imports amounted to nearly US$ 2 billion, with a slight decline to approximately US$ 1.4 billion in 2019. On average, the nation imports between 1 and 2 billion US dollars worth of vehicles each year.
While the decision to lift the suspension on vehicle imports was not driven by robust foreign reserves, the President stressed that it was a strategic move to stimulate the country’s economy.
However, he cautioned that the reintroduction of imports must be carefully managed to minimise its effect on the country’s dollar reserves and prevent further economic instability.
President Dissanayake explained that, at present, the vehicle market includes cars imported at the 2019 dollar exchange rate, which was around Rs. 190 to the US dollar. With the rupee now nearing Rs. 300 to the dollar, the cost of vehicles is expected to rise by around 40 per cent, reflecting the currency devaluation.
He also highlighted the presence of a substantial number of second-hand vehicles in the market, many of which were purchased through leasing arrangements.
If the price difference between new and second-hand vehicles becomes too narrow, it could create a new crisis, particularly in the second-hand vehicle market, with potential negative repercussions for leasing companies and financial institutions.
The President emphasised the importance of striking a balance in vehicle prices to avoid instability. If new vehicles become too expensive, it could lead to disruptions in the second-hand vehicle market, where many consumers have already made significant investments.
He stated that the government would need to carefully monitor the situation and adjust policies to prevent market imbalances.
Discussions have also been held with the Central Bank to ensure that the allocation of foreign currency for vehicle imports is managed prudently.
The President confirmed that vehicle imports will be phased throughout the year to avoid putting excessive strain on the country’s foreign exchange reserves, particularly in February when imports are set to begin.
A sudden influx of vehicle imports, potentially worth up to US$ 1.2 billion in just one month, could lead to further economic strain, he warned.
On the issue of vehicle permits, President Dissanayake made it clear that it was unlikely permit holders would be given preferential treatment this time. In 2018, permit holders used US$ 1.9 billion to import vehicles, a figure that the government is keen to reduce.
The aim is to limit vehicle imports to around US$ 1.2 billion annually, while taking into account the market’s capacity and the potential rise in prices.
The President acknowledged the risks involved in this decision, noting that further actions would depend on how the market evolves.
January 22, Colombo (LNW): The deadline for the submission of tenders for the construction of a new passenger terminal at Bandaranaike International Airport, Katunayake, has been extended until March, according to the Deputy Minister of Ports and Aviation, Ruwan Kodituwakku.
This significant project is being supported by the Japan International Cooperation Agency (JICA), which is assisting in both financing and technical expertise.
Speaking about the development, Deputy Minister Kodituwakku confirmed that, following the extension, construction work is now expected to begin in June.
The new terminal will play a crucial role in enhancing the airport’s capacity and modernising its infrastructure to meet the growing demand for air travel.
Once completed, the new terminal will greatly increase the airport’s ability to handle passengers, with a target of reaching 15 million annual passengers by 2028.
January 22, Colombo (LNW): Minister of Public Security Ananda Wijepala, revealed in Parliament yesterday (21) that the Financial Crimes Investigation Division (FCID) will recommence its operations next week, as part of the government’s renewed effort to combat financial crimes and corruption.
During the adjournment debate on the Clean Sri Lanka programme, Minister Wijepala addressed Parliament, outlining the government’s firm commitment to tackling financial misconduct and ensuring that justice is upheld across the country.
He reassured lawmakers that the authorities would leave no stone unturned in investigating financial crimes, even those that had been buried and overlooked in the past.
Minister Wijepala highlighted that the Criminal Investigation Department (CID) currently holds over 29,000 case files related to various crimes, many of which involve financial mismanagement.
He explained that with the reactivation of the FCID, these cases would be meticulously reviewed, and the division would be specifically tasked with handling financial crime cases.
This move, he emphasised, is intended to ensure that those responsible for financial wrongdoings are held accountable.
The reinstitution of the FCID is expected to bolster ongoing efforts to restore public trust in government institutions and promote transparency in both the public and private sectors.
