By: Staff Writer

January 21, Colombo (LNW):

The Collapse of an Iconic Industry

The once-thriving bicycle industry of Sri Lanka is on the brink of collapse, with Lumala City Cycle Industries Manufacturing Ltd., a household name and one of the country’s oldest manufacturing giants, facing an unprecedented crisis.

For decades, Lumala not only symbolized Sri Lanka’s industrial prowess but also served as a vital economic contributor.

However, mounting challenges such as unfair market practices, excessive taxation on raw materials, and a flood of unregulated imports have brought this iconic company—and the broader industry—to its knees.

A Call for Urgent Government Intervention

Employees of Lumala are now calling for urgent Government intervention to prevent the shutdown of South Asia’s leading bicycle manufacturer. Based in Panadura, Lumala has been a cornerstone of Sri Lanka’s industrial sector for over five decades. However, escalating costs and unethical market competition threaten the company’s survival.

“The management has already begun a phased shutdown, closing the steel rim department and one of Sri Lanka’s few chromium plating plants. Further closures, including fork and mudguard production, alloy rim production, frame manufacturing, and the paint department, are imminent unless immediate action is taken.

Employees, many of whom have worked at Lumala for over two decades, now fear for their livelihoods,” said Lumala Factory General Manager Ranjith Siriwardana.

Challenges Undermining Local Manufacturing

Employees have identified several critical challenges driving Lumala’s crisis:

Unregulated Imports: The local market is flooded with imported bicycles and electric bicycles, many of which bypass regulatory checks.

Tax Loopholes: Certain trading companies allegedly exploit tax loopholes by misdeclaring imported parts as raw materials, evading customs duties and VAT. This enables them to sell substandard products at artificially low prices, undercutting domestic manufacturers.

Excessive Taxation on Raw Materials: While finished products are imported cheaply, raw materials for local production face heavy taxation, increasing costs and undermining competitiveness.

These challenges not only threaten ethical manufacturers like Lumala but also deprive the Government of substantial tax revenue.

Far-Reaching Consequences

If Lumala’s shutdown continues, the impact will extend far beyond the company. Hundreds of employees risk losing their jobs, including many who have dedicated decades of service. Renowned local suppliers who depend on Lumala’s operations will face disruption, and related industries such as motorcycles and motor vehicles—many of which rely on Lumala’s facilities for raw materials—may also suffer.

Despite achieving a local value addition of 50% to 70%, as verified by the Industries Ministry, Lumala’s concerns remain unaddressed, leaving employees disillusioned.

A Collective Plea for Fair Policies

In their collective plea, Lumala’s employees urge the Government to implement fair tax policies to eliminate unethical market practices and ensure consistent enforcement of regulations. They call for a comprehensive investigation involving the Industries Ministry, the Industrial Development Board (IDB), Sri Lanka Customs, and the Inland Revenue Department to address systemic challenges.

Employees emphasize that they are not seeking special privileges or tax cuts but a level playing field to compete fairly. They remain hopeful that timely Government intervention can prevent further job losses and halt the decline of Sri Lanka’s bicycle industry.

The fate of Lumala is a stark reminder of the urgent need to protect local industries, which form the backbone of the national economy.

January 21, Colombo (LNW): Jose Ignacio Sanchez Amor, the Chief Observer of the European Union Election Observation Mission and a Member of the European Parliament, recently led a delegation in a meeting with Speaker Dr. Jagath Wickramaratne at the Sri Lankan Parliament.

During the meeting, Sanchez Amor conveyed his congratulations to both the Speaker and the newly-formed government, recognising the efforts in maintaining democratic values in the country.

Sanchez Amor presented the final report of the 2024 Presidential Election Observation Mission to the Speaker, highlighting several positive aspects of the election process.

He commended the election’s democratic nature and the significant role played by the Election Commission.

The Chief Observer emphasised the necessity of continuing to strengthen the commission in order to uphold free and fair elections in the future.

He also praised the increased representation of women in the current Parliament, noting it as a progressive step towards gender equality.

In his response, Speaker Dr. Wickramaratne expressed his appreciation to the European Union Election Observation Mission for its valuable insights and support.

He reassured the delegation that the government is committed to advancing transparency, reducing corruption, and embedding true democratic values into the governance system.

Additionally, the Speaker shared plans to hold a landmark conference of Members of Parliament who are differently-abled, a first in the country’s history.

This initiative is intended to ensure that the voices of all elected representatives are heard and to promote inclusivity within the legislative process.

The Secretary General of Parliament, Mrs. Kushani Rohanadeera, was also present at the meeting.

January 21, Colombo (LNW): The government has embarked on an extensive review of the “Aswesuma” welfare benefits programme to ensure its inclusivity and fairness, Deputy Minister of Finance and Planning Harshana Suriyapperuma announced in Parliament this (21) morning.

This move comes in response to concerns about the distribution of benefits and the need for greater accessibility for eligible citizens.

Speaking during the parliamentary session, Suriyapperuma highlighted that investigations are currently underway to identify individuals who have not yet received the support they are entitled to.

The government is determined to rectify this oversight and ensure that all deserving recipients are included in the programme.

“To improve the delivery of relief, the data collected through the system is being reassessed,” Suriyapperuma explained. “We have received numerous appeals from people who believe they were unfairly excluded, and these will be thoroughly examined in line with established procedures to ensure that no one is left behind.”

The Deputy Minister further revealed that, as part of the 2025 national budget, the government plans to allocate a larger sum for welfare benefits than in 2024.

This increase reflects the government’s commitment to improving the system and expanding its reach to assist those who are struggling, particularly in the wake of recent economic challenges.

The government aims to ensure that the Aswesuma programme more effectively supports vulnerable populations across the country, providing much-needed financial relief to those facing hardships.

January 21, Colombo (LNW): The parliamentary session began at 9:30 a.m. on January 21, marking the start of a full day of discussions and deliberations.

The morning was initially dedicated to routine parliamentary business, as outlined in Standing Order 22, which spanned from 9:30 a.m. to 10:00 a.m.

This was followed by a scheduled hour for Questions for Oral Answers from 10:00 a.m. to 11:00 a.m., allowing members to raise matters directly with the government.

From 11:00 a.m. to 11:30 a.m., time was allocated for Questions under Standing Order 27(2), providing further opportunities for members to seek clarifications on pressing issues.

The highlight of the day was the Adjournment Debate, focused on the government’s “Clean Sri Lanka” programme, which was scheduled to run from 11:30 a.m. to 5:30 p.m.

However, due to time constraints, it was decided to adjourn the debate, with plans to resume on Wednesday, January 22.

The Secretary General of the Parliament confirmed the decision, ensuring that all key aspects of the debate will receive the attention they deserve when Parliament reconvenes.

January 21, Colombo (LNW): The recent breach of the Gal Oya banks in the Nena Kaadu area, Ampara, has resulted in severe flooding, submerging large expanses of agricultural land, including valuable paddy fields.

The inundation has affected around 1,000 acres of land in the Dighavapiya colony, Nena Kaadu, and Samanthurai areas.

The breach, which occurred due to continuous adverse weather conditions, has submerged fields that were either recently harvested or nearing harvest.

The damage to the crops is considerable, with farmers in these regions now facing significant losses.

The situation has been exacerbated by the opening of the sluice gates of the Senanayake Samudraya reservoir in Inginiyagala.

The opening of the gates followed continuous heavy rainfall in the Ampara district, which saw the water level rise to 108 feet 03 inches in the catchment area.

As a result, five spill gates of the reservoir have been opened by 15 inches each, releasing approximately 1,177 cubic feet of water per second into the already saturated surrounding areas.

This incident marks the second breach of the Gal Oya banks in recent months. In January 2024, flooding caused similar damage, and despite renovations to the banks, the same area experienced a breach again in November 2024.

These recurring incidents have raised concerns about the long-term stability and effectiveness of flood control measures in the region.

The ongoing floods are not only threatening the livelihoods of local farmers but also posing a challenge to the broader agricultural productivity of the region.

Local authorities are continuing to monitor the situation closely, but the damage to paddy crops and the infrastructure needed for flood prevention will require significant recovery efforts.

January 21, Colombo (LNW): The United Merchants Association of Colombo has called on businesses across Sri Lanka to pass on the benefits of a recent 20 per cent reduction in electricity tariffs to consumers.

The association’s president, Krishan Marambage, emphasised that the reduction should not only be seen as a relief to businesses but also as an opportunity to ease the financial burden on the general public.

He stated that with the reduced electricity tariff, businesses in all sectors should follow suit and lower the prices of goods and services.

“When the cost of electricity goes down, the cost of production and services should also decrease, which in turn will help bring down the prices of goods across the board,” Marambage explained.

The reduction in electricity rates is expected to have a far-reaching impact, particularly on small-scale businesses, the self-employed, and industries such as hospitality, manufacturing, exports, and spice production.

These sectors, which rely heavily on electricity for their day-to-day operations, stand to benefit significantly. Marambage suggested that in many cases, the prices of goods and services could be reduced by at least 10% as a direct result of the tariff cuts.

“We strongly encourage the business community to take immediate action by reducing their prices, starting today,” he urged. “This tariff revision provides a unique opportunity to lessen the financial strain on the public, and we believe it is our responsibility to ensure that these benefits are passed on to consumers.”

The association also expressed its gratitude to the government for implementing the tariff reduction at such a critical time when many sectors are in the process of recovery.

Marambage praised the government’s responsiveness to the concerns of businesses and the public, highlighting that the relief provided by the tariff reduction will contribute to reducing the overall cost of living and promoting greater economic stability.

“The government’s decision to lower electricity rates shows that it is not only listening to the needs of the people but is committed to making genuine, positive changes that will support the economic revival of the country,” he said. “We are thankful for this relief and believe it will have a lasting, positive impact on both businesses and consumers.“

H.K. Jagath Kumara, Chief Secretary of the United Merchants Association, echoed these sentiments, calling the tariff reduction a humanitarian gesture that reflects the government’s awareness of the public’s hardships.

He stressed that this move was a clear indication of a government that is committed to transparency, free from corruption, and focused on providing relief to the people.

“Everyone should view this as a time to support the government’s efforts to ease the cost of living. We are confident that the upcoming Budget will bring further relief to the public and contribute to the ongoing economic revival,” Kumara said. “This government has shown that it is taking the right steps, and we are hopeful for what lies ahead.“

Marambage also took the opportunity to contrast the current government’s approach to tariff reductions with that of the previous administration. He noted that under the previous government, the Public Utilities Commission’s recommendations for tariff reductions were largely ignored, which caused further hardship for the public.

“While businesses are quick to raise prices when costs increase, they are often reluctant to reduce prices even when costs fall,” Marambage pointed out. “This is unfair to consumers, and we urge businesses to take the necessary steps to pass on these savings.“

Finally, Marambage called on the Opposition to refrain from criticising the government during this time of positive change and instead support the government’s efforts to bring about long-term relief for the people.

“Rather than focus on negative criticism, it’s time for all parties to come together and support initiatives that will benefit the country and its people,” he concluded. “We are hopeful that the government’s ongoing efforts will lead to a brighter, more stable future for all Sri Lankans.”

January 21, Colombo (LNW): Four individuals, wanted by the Sri Lankan authorities for their involvement in various criminal activities, have been apprehended by Interpol in a coordinated international effort.

The suspects, who had red notices issued for their arrest, were detained in Dubai and three other countries, according to the Police Media Division.

For security reasons, the identities of the arrested individuals have not been disclosed by the Sri Lankan authorities.

The operation is part of a broader effort to capture notorious criminals who have fled the country and continued their illicit activities, including drug trafficking, while operating from abroad.

In a related development, Sri Lankan authorities had previously submitted a list of wanted criminals to Interpol, seeking international assistance to track down those accused of serious crimes and who were suspected to be hiding in foreign countries.

One of the most high-profile arrests in recent weeks was that of Janith Madushanka Silva, also known as ‘Podi Lassie’, a notorious drug trafficker and organised crime figure.

Silva had been out on bail but illegally fled Sri Lanka despite a court-imposed travel ban. He was recently arrested in Mumbai, India, and Sri Lankan officials are now working closely with Indian authorities to arrange for his repatriation.

In the meantime, investigations by the Sri Lankan Police have revealed that organised criminal gangs are responsible for a significant portion of the shootings that have taken place across the island in 2025.

Out of the eight reported shootings so far, six have been linked to criminal groups. These incidents have resulted in five fatalities and five other individuals suffering injuries that required hospitalisation.

The most recent of these shootings occurred in Mount Lavinia on Sunday (19), where a 24-year-old man, Savidu Tharusha from the Badowita area, was shot and killed by two gunmen on a motorcycle. The assailants, after carrying out the attack near a restaurant on Siripala Mawatha, fled the scene.

However, one suspect was apprehended by Dehiwala Police along with the firearm used in the crime. Later, the motorcycle used in the shooting was discovered abandoned in the Attidiya area on the same day.

Further investigation has linked the victim to the criminal gang of ‘Kos Malli’, who is believed to be hiding in Dubai.

Police also suspect that the shooting may have been orchestrated by another notorious gang leader, ‘Badowita Asanka’, further highlighting the ongoing challenges posed by organised crime in the region.