Sri Lanka’s export sector is now confronting a multi-layered crisis, where global freight disruptions, falling demand, and rising domestic energy costs are converging to undermine competitiveness and long-term stability. Industry leaders warn that without structural reform, the country risks losing its position in global supply chains.

The Joint Apparel Association Forum (JAAF) has highlighted how ongoing instability in the Middle East is triggering widespread disruption in global shipping routes. Carriers are avoiding high-risk zones, introducing emergency surcharges, and reducing service frequency, all of which have driven up both sea and air freight costs to unprecedented levels.

At the same time, Sri Lanka’s apparel export performance is weakening. February 2026 recorded an 11.46% year-on-year decline, with sharp contractions across the EU, US, UK, and other markets. This reflects not only logistics pressures but also a broader slowdown in global demand, further weakening export momentum.

JAAF Secretary General Yohan Lawrence warned that the real burden is increasingly shifting onto exporters despite formal freight agreements. While most shipments operate under FOB or FCA terms, global buyers are pushing suppliers to share rising transport costs. This is squeezing margins at a time when operational costs are already elevated.

Disruptions in shipping operations are also creating logistical uncertainty. Cargo destined for Gulf markets has, in some cases, been offloaded prematurely at alternative ports, forcing exporters to track, recover, and reroute goods at their own expense. Industry sources say these practices are adding hidden costs and unpredictability to supply chains.

Beyond logistics, Sri Lanka’s structural energy challenges are emerging as a critical constraint on export competitiveness. Industry leaders argue that high electricity tariffs, dependence on fossil fuels, and delays in renewable energy integration are undermining the country’s ability to compete with regional manufacturing hubs.

Lawrence stressed that countries such as India are already benefiting from cheaper open-access renewable energy systems, while global buyers increasingly prioritise greener supply chains. In contrast, Sri Lanka’s energy pricing structure remains heavily dependent on imported fuel costs, exposing exporters to volatility.

He further noted that regulatory bottlenecks in implementing open-access power and renewable integration are preventing industries from accessing cheaper energy alternatives. Despite directives to improve efficiency, delays in reform are keeping production costs high.

The JAAF has called for urgent acceleration of solar, wind, and battery storage investments, arguing that energy reform is now as critical as trade policy. Without it, Sri Lanka risks losing export orders to countries with more stable and sustainable energy systems.

As freight instability, declining demand, and energy inefficiencies converge, exporters warn that Sri Lanka’s trade model is under unprecedented strain, requiring immediate and coordinated policy intervention.

The government has accelerated plans for a sweeping digital transformation of the motor vehicle registration system, aiming to eliminate decades-old inefficiencies, reduce corruption, and modernize public service delivery. Officials confirm that the overhaul will automate first-time vehicle registrations and significantly reduce opportunities for manual interference.

The initiative comes at a critical time, as a growing number of vehicle owners report delays in obtaining Fuel Quota QR codes now an essential requirement for fuel access. Many new and transferred vehicle owners, despite completing registration formalities, remain unable to access the fuel allocation system due to technical mismatches between databases.

At the heart of the issue lies a lack of synchronisation between the fuel quota issuance platform and the Department of Motor Traffic’s (DMT) outdated registration database. The system currently in use dates back to 1996 and is no longer maintained by its original developers. Instead, it is managed internally by personnel lacking specialised technical expertise, leading to inefficiencies and data update delays.

These shortcomings were formally acknowledged by the Commissioner General during a recent parliamentary oversight committee meeting. The official highlighted how the obsolete system has become a bottleneck, directly affecting citizens who depend on timely digital verification for essential services.

The long-delayed e-Motoring project intended to replace the legacy system is now in a crucial transitional phase, with authorities setting a mandatory deadline for full implementation within the year.

 However, the project’s history reveals years of setbacks. Between 2019 and 2020, progress stalled due to inadequate physical infrastructure to support private sector collaboration. Subsequent years saw legal disputes following the withdrawal of an international technology partner, resulting in contract renegotiations and pricing disagreements exacerbated by inflation.

Although the project was officially restarted in 2024 after revised cost proposals were submitted for approval, concerns remain about whether the system will be implemented effectively and on time.

Beyond technical inefficiencies, the issue raises broader questions about governance and accountability. Substantial fees collected from the public for vehicle-related services have not translated into meaningful improvements in infrastructure or service delivery. The absence of reinvestment has further compounded operational challenges.

As frustration grows among vehicle owners, the government’s push for digital reform is seen as both necessary and overdue. Experts warn that without swift and transparent implementation, the same systemic issues could persist under a new technological framework.

The success of this initiative will depend not only on modern software, but also on improved oversight, technical competence, and a commitment to restoring public trust in a system long plagued by inefficiency.

Sri Lanka’s attempt to accelerate digital transformation is increasingly being viewed as a case study in how not to implement structural reform. The abrupt decision to liquidate the Information and Communication Technology Agency (ICTA) the primary digital governance body has exposed deep flaws in planning, execution, and policy continuity.

Rather than building on ICTA’s institutional knowledge, authorities have opted for a complete overhaul, replacing it with GovTech and the Digital Economy Authority. While the stated goal is to separate policy from implementation, the transition process reveals a troubling lack of coordination and foresight.

Key digital infrastructure projects are being transferred midstream. The Lanka Government Network (LGN 2.0), which currently connects over 850 government institutions via high-speed fibre, is slated for expansion to 3,500 offices under GovTech. Similarly, the Lanka Government Cloud will be upgraded to LGC 3.0, incorporating artificial intelligence and big data capabilities. These are complex, mission-critical systems yet they are being shifted to a newly formed entity still building its operational capacity.

Support structures such as the Lanka Government Information Infrastructure (LGII) will continue technical operations, but this partial continuity may not be enough to prevent disruptions during the transition.

The الحكومة’s reliance on external funding further complicates the picture. Financial commitments from the World Bank and Asian Development Bank provide critical support, but also increase pressure to deliver measurable outcomes. Without a robust implementation plan, there is a real risk that these funds will be underutilised or misallocated.

Perhaps the most contentious issue is the handling of human capital. ICTA’s experienced workforce faces uncertainty, as employment in the new entities is neither guaranteed nor systematically managed. This not only affects morale but also threatens the  ability to sustain ongoing digital services.

At the same time, the rollout of new initiatives such as a unified government “Super App” and a digital procurement marketplace suggests a preference for headline-grabbing projects over foundational stability. Analysts warn that such short-sighted decision-making could lead to fragmented systems rather than integrated governance.

Sri Lanka stands at a critical juncture. Digital transformation is not merely about new institutions or technologies; it requires continuity, clarity, and disciplined execution. By dismantling ICTA without a comprehensive transition strategy, policymakers risk undoing years of progress.

What is unfolding is not just a restructuring it is a test of whether Sri Lanka can move beyond ad hoc decision-making and build a resilient, future-ready digital state. At present, the signs point to a proper process driven more by urgency than by strategy, with uncertain consequences for the nation’s digital trajectory.

The growing use of cryptocurrency in Sri Lanka is increasingly linked to concerns over financial crime, with authorities warning that digital assets are being exploited for money laundering and illicit transactions.

Regulators, led by the Central Bank of Sri Lanka, have flagged the risks posed by unregulated crypto activity, particularly the ease with which funds can be transferred across borders without oversight. This has raised alarms about capital flight and the potential use of digital currencies to conceal proceeds from illegal activities.

Law enforcement agencies, including the Criminal Investigation Department, are now actively investigating several high-profile cases. One major probe involves the alleged laundering of Rs. 290 million through global crypto exchange Binance. Authorities claim suspects exploited loopholes in foreign exchange regulations to convert public funds into cryptocurrency, enabling them to move money خارج the country undetected.

In a separate case, fraudulent transactions exceeding Rs. 14 billion have affected thousands of victims, highlighting the масштаб of financial crimes linked to digital assets. Courts have emphasized that such cases represent serious financial misconduct rather than ordinary fraud, urging swift investigations and stronger enforcement.

The government’s response is intensifying ahead of an international evaluation by the Asia-Pacific Group on Money Laundering in 2026. Officials are prioritizing anti-money laundering reforms to meet global standards and avoid potential sanctions or reputational damage.

A key initiative is the development of an integrated data system connecting the Central Bank, police, and the Department for Registration of Persons. This system is designed to detect suspicious financial activity and support legal action against organized crime networks, including those involved in drug trafficking.

Authorities have also identified links between crypto and illegal transactions conducted via digital payment platforms such as eZCash and mCash. These platforms, combined with cryptocurrencies, have reportedly been used to obscure transaction trails.

To strengthen oversight, new regulations will require Virtual Asset Service Providers to register with the Financial Intelligence Unit and comply with international standards such as the “Travel Rule,” which mandates the sharing of transaction data. Additionally, non-resident digital service providers, including crypto exchanges, must register for VAT at 18 percent starting April 2026.

Despite these efforts, enforcement remains challenging. The decentralized nature of cryptocurrencies makes tracking transactions difficult, while the continued use of offshore platforms limits the reach of local authorities.

Sri Lanka now faces a critical moment. Without effective regulation and enforcement, cryptocurrency could continue to serve as a conduit for illicit finance. But with the right safeguards, it may still be possible to harness its benefits while minimizing the risks to the country’s financial system and global standing.

A dog named “Aloka,” which has gained public attention in connection with the upcoming “Walk for Peace,” will travel in the passenger cabin on a flight to Sri Lanka.

Aloka has been granted permission to fly inside the cabin as a certified service animal, rather than being placed in the cargo hold. A special seat has been allocated alongside Venerable Pannakara Thero, who is leading the visiting delegation.

The rescue dog, of Indian origin, has become widely known as “Aloka the Peace Dog” for accompanying a group of monks on their Walk for Peace journey.

The internationally recognised Walk for Peace pilgrimage is scheduled to take place in Sri Lanka from April 21 to 28, 2026, under full state patronage.

The event will include a delegation of monks led by the Most Venerable Pannakara Thero, who is expected to take part in the procession carrying a Bodhi sapling from the Jaya Sri Maha Bodhi in Anuradhapura.

Sri Lanka has recorded a notable increase in higher educational attainment over the past decade, including a rise in the number of PhD holders, according to the Census of Population and Housing 2024 covering those aged 25 and above.

Key highlights from the report show a steady shift towards advanced education:

• The number of PhD holders increased from 6,557 in 2012 to 11,757 in 2024, though they still account for just 0.1% of the population.
• Degree holders more than doubled, rising from 358,052 (3.0%) to 780,958 (5.6%).
• Those with tertiary education grew significantly from 2,195,117 (18.2%) to 3,635,462 (26.2%).
• Individuals with G.C.E. A/L or equivalent qualifications increased from 1,724,574 (14.2%) to 2,677,022 (19.4%).
• The number of people with secondary education rose from 7,079,569 to 8,096,402, remaining steady at around 58% of the population.
• Those with only primary education declined from 2,214,792 (18.4%) to 1,738,942 (12.5%).
• The number of individuals with no schooling fell from 561,163 (4.7%) to 400,511 (2.9%).

The data reflects a broader national trend towards improved access to education and higher qualification levels across the population.

Pope Leo has sharply criticised global leaders for spending billions on wars, warning that the world is “being ravaged by a handful of tyrants,” during a visit to Cameroon.

Speaking in a region affected by a prolonged insurgency, the pontiff condemned those who exploit religion for personal or political gain, accusing some leaders of manipulating “the very name of God.”

His remarks come amid growing tensions with U.S. President Donald Trump, following a recent public exchange over the ongoing U.S.-Israeli military operations involving Iran. While Trump criticised the Pope on social media, Leo said he would avoid direct confrontation but continue advocating for peace.

Addressing the issue of global priorities, the Pope said, “Billions of dollars are spent on killing and devastation, yet the resources needed for healing, education and restoration are nowhere to be found.”

He warned that the pursuit of war fuels long-term instability, adding, “It takes only a moment to destroy, yet often a lifetime is not enough to rebuild.”

During his visit to Bamenda in Cameroon’s conflict-affected northwest, the Pope highlighted the human cost of violence, describing the region as “bloodstained” after years of unrest that have left thousands dead and many displaced.

He also pointed to the role of resource exploitation in perpetuating conflict, stating that profits are often reinvested in weapons, creating “an endless cycle of destabilisation and death.”

Calling for unity and reconciliation, the Pope said peace must be embraced through mutual understanding. “Peace is not something we must invent; it is something we must embrace by accepting our neighbour as a brother and sister,” he said.

The Pope has consistently voiced opposition to war, recently describing the Iran-related conflict as “atrocious” and rejecting any attempt to justify violence in religious terms.

Despite criticism from political leaders, Pope Leo reiterated that he would continue to speak out against war and promote peace throughout his ongoing Africa tour, which includes visits to multiple countries and highlights the growing importance of Catholicism in the region.

U.S. President Donald Trump said on Thursday that he may travel to Islamabad if a deal with Iran to end the ongoing conflict is finalised, claiming that Tehran has agreed to most terms under discussion.

Speaking to reporters at the White House before departing for a trip to Nevada and Arizona, Trump struck an optimistic tone, suggesting that negotiations were progressing toward a resolution.

“If a deal is signed in Islamabad, I may go. They want me,” he said.

Trump also indicated that the current U.S.-Iran ceasefire, which is set to expire next week, could be extended if necessary, though he suggested it may not be required if an agreement is reached in time.

He further claimed, without providing evidence, that Iran has agreed to give up its enriched uranium, which is believed to be stored following previous U.S.-Israeli airstrikes.

The proposed deal is expected to focus on ending the conflict and curbing Iran’s nuclear programme, with Washington pushing for Tehran to fully abandon its nuclear ambitions.

The Ministry of Digital Economy has announced that all public services of the Department for Registration of Persons (ID Office) have been temporarily suspended today (17) due to an unexpected system failure.

According to the Ministry, the disruption was caused by a sudden breakdown in the department’s computer system, which is currently being restored.

As a result, all services—including the one-day issuance facility at the head office and operations at all provincial offices—will remain unavailable for the day.

Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Southern and Uva provinces and in Kandy and Nuwara-Eliya districts after 1.00 pm.

Mainly dry weather will prevail over the other parts of the island.

Misty conditions can be expected at some places in Central, Sabaragamuwa, Northcentral and Uva provinces and in Galle, Matara and Kurunegala districts during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.