January 16, Colombo (LNW): India and Sri Lanka have formalised a significant grant assistance agreement to support the Sri Lankan police force with new vehicles.
The agreement, which focuses on the supply of single-cab vehicles for use in police stations, was officially signed between the High Commission of India in Sri Lanka and the Ministry of Public Security of Sri Lanka.
The Memorandum of Understanding (MoU) was exchanged by Indian High Commissioner to Sri Lanka, Santosh Jha, and the Secretary of Sri Lanka’s Ministry of Public Security & Parliamentary Affairs, D.W.R.B. Seneviratne.
This collaboration marks a milestone in the growing security partnership between the two nations.
Under the terms of the agreement, India will provide grant assistance to the value of up to Rs 300 million, which will be used to supply at least 80 single-cab vehicles, along with spare parts and accessories, to police stations across Sri Lanka’s Northern Province.
The signing ceremony was attended by several distinguished officials, including Acting Inspector General of Police Priyantha Weerasuriya, along with senior representatives from the Ministries of Public Security, Finance, Planning & Economic Development, and the Sri Lanka Police.
The vehicles provided through this grant are expected to improve the accessibility of police services in remote and underserved areas, contributing to overall public safety.
January 16, Colombo (LNW): Sri Lanka has successfully secured a major foreign direct investment (FDI) during President Anura Kumara Dissanayake’s ongoing state visit to China.
A landmark agreement, worth $3.7 billion, was signed today (16) to establish a state-of-the-art oil refinery in the Hambantota region, a statement by the President’s Media Division (PMD) confirmed.
The deal, formalised between Sri Lanka’s Ministry of Power and Energy and China’s Sinopec Corporation, will see the development of a refinery with a capacity to process 200,000 barrels of oil per day.
A significant portion of the refined product is expected to be allocated for export, contributing to Sri Lanka’s foreign exchange earnings.
This strategic investment aims to stimulate economic growth by bolstering the country’s energy sector while also creating jobs and fostering development in the Hambantota area.
The refinery is expected to have a positive ripple effect, benefiting local communities and contributing to the broader economic landscape of Sri Lanka.
The signing ceremony, which took place in the presence of key government officials, was attended by Sri Lanka’s Foreign Minister Vijitha Herath and Transport Minister Bimal Ratnayake.
The agreement is viewed as a significant milestone in the strengthening of bilateral ties between Sri Lanka and China, with both nations recognising the potential for this project to enhance economic cooperation and infrastructure development.
The new refinery will not only support Sri Lanka’s growing energy needs but also position the country as a more prominent player in the regional oil market.
January 16, Colombo (LNW): The United States has expressed strong support for the Sri Lankan government’s commitment to economic reforms and anti-corruption measures under the leadership of President Anura Kumara Dissanayake.
US Ambassador to Sri Lanka, Julie Chung, praised the new administration’s dedication to stabilising the economy and ensuring transparency in governance, particularly its efforts to adhere to the International Monetary Fund (IMF) programme and finalise restructuring of international sovereign bonds.
As Sri Lanka embarks on a critical period of economic recovery, Ambassador Chung highlighted the importance of these steps in securing financial stability and laying the foundation for future growth.
“We welcome the Sri Lankan government’s commitment to remaining aligned with the IMF programme and its work towards restructuring sovereign bonds. These are pivotal moves to restore confidence in the country’s economy,” she remarked, underlining the significance of these initiatives for both domestic progress and international relations.
Ambassador Chung also emphasised that while stabilising the economy is an essential first step, the more complex challenge lies in driving long-term growth, enhancing productivity, and establishing sustainable economic practices.
The ambassador lauded the launch of the “Clean Sri Lanka” initiative, an ambitious project designed to overhaul the political and economic culture of the country, promoting transparency and accountability in all sectors.
The “Clean Sri Lanka” initiative, which aims to root out corruption and improve governance, has been recognised as a bold move towards reform. Ambassador Chung expressed optimism regarding the government’s commitment to following through with tangible actions.
These include the potential restructuring of inefficient state-owned enterprises, upholding contracts, and creating a fair playing field for foreign companies operating in Sri Lanka, free from protectionist policies.
“With the government’s focus on the ‘Clean Sri Lanka’ initiative, we look forward to seeing measurable steps towards political and economic renewal. It’s vital that state-owned enterprises are reformed, contracts are honoured, and foreign businesses are provided with equal opportunities to thrive,” added Ambassador Chung.
“As we look to the future, we must also consider the role of emerging technologies like artificial intelligence and how they will shape business opportunities in Sri Lanka.“
In addressing broader global challenges, Ambassador Chung also acknowledged the impact of external factors such as shipping delays due to Houthi attacks in the Red Sea and the economic repercussions of Russia’s invasion of Ukraine.
She stressed the importance of resilience and strategic planning in navigating these complex and often unpredictable circumstances.
The United States has continued to play a crucial role in supporting Sri Lanka’s development. Ambassador Chung pointed to ongoing US support, which includes loans through the US Development Finance Corporation to small and medium enterprises (SMEs), entrepreneurial training, and technical assistance from both the US Treasury Department and USAID. These initiatives focus on sectors such as renewable energy, procurement reform, and enhancing tax revenue systems.
January 15, Colombo (LNW): A groundbreaking milestone in South Asia’s tourism industry was achieved on January 10th with the grand opening of “Amba Yaalu”, the island nation’s first 100% female-staffed tourist hotel.
A thematic resort nestled in the middle of a mango plantation with 457 TJC mango trees bordering the tranquil banks of Kandalama Reservoir. Inspired by the novel ‘Amba Yaluwo’ (Mango Friends) and the golden era of Sri Lankan cinema, this unique property is Sri Lanka’s first hotel fully managed and staffed by women.
Built under the auspices of “Thema Collection”, the hotel was inaugurated with a lively ceremony attended by embassy officials, government representatives, and prominent figures in the tourism industry.
Highlighting the cultural significance of the event, two female Buddhist monks conducted a Pirith sermon to bless the hotel and its all-women staff.
The visionary behind this initiative, Chandra Wickramasinghe, Chairman of “Thema Collection”, emphasized that the hotel showcases how women can excel in every facet of the hospitality industry.
The hotel manager, Madhuwanthi Adhikari, shared her enthusiasm for leading this one-of-a-kind project.
Adding to the excitement, Anuradhapura native Kaushalya Batagoda has taken on the role of head chef, using her culinary expertise acquired locally and abroad.
“It’s an incredible honor to be a part of this all-female team and lead the culinary department of such a unique venture,” she expressed.
Reflecting a vintage cinematic charm, ‘Amba Yaalu’ incorporates elements inspired by the iconic Sinhala novel ‘Amba Yaaluwo’, by B. Ilangaratne.
The hotel features an old movie theater as part of its design, with posters, banners, and antique camera equipment displayed throughout.
The restaurant itself is styled to resemble a retro cinema, creating a nostalgic experience for guests.
January 15, Colombo (LNW): Despite the easing of vehicle import restrictions in Sri Lanka, high taxes have dashed public hopes for affordable car prices, creating significant barriers to imports, MP Dayasiri Jayasekara said.
Speaking to the media, he criticized the government for raising expectations during elections only to impose stringent regulations that make importing vehicles nearly impossible.
Jayasekara highlighted that four key taxes now apply to vehicle imports: taxes based on engine capacity, valuation tax, luxury tax, and an 18% VAT. Together, these taxes have caused vehicle prices to skyrocket, with importers predicting a price hike of up to 500%.
He added that the Central Bank’s insistence on maintaining “artificial vehicle prices” in the local market has further exacerbated the issue, as the government prioritized increasing tax revenue over addressing inflated prices.
Prasad Manage, President of the Vehicle Importers Association of Sri Lanka (VIASL), echoed these concerns, explaining that vehicle import taxes range between 200% and 500% depending on the vehicle.
He outlined that beyond excise duties, other levies, including luxury taxes, customs duties, and the 18% VAT, are calculated based on the vehicle’s value, insurance, and freight (CIF) costs. For some vehicles, cumulative taxes could reach 600%, he said, cautioning buyers against making advance payments before import processes resume.
Initial pricing estimates reveal steep costs. Popular petrol vehicles, such as the Suzuki Every, Toyota Corolla, and Nissan Dayz, are priced at Rs. 1.3 million, Rs. 6.6 million, and Rs. 1.9 million, respectively.
Hybrid vehicles, including the Suzuki Wagon R and Honda Fit, start at Rs. 1.8 million and Rs. 3.5 million, with premium models like the Toyota Prius reaching Rs. 11.3 million. These figures exclude the full impact of layered taxes.
Meanwhile, Sampath Merenchige, President of the Vehicle Importers Association of Lanka (VIAL), called for policy changes to allow the import of vehicles over five years old. Noting Japan’s tendency to phase out older vehicles, he argued that this could reduce costs and expand consumer choices.
Vehicle importers are urging the government to adopt a balanced approach that considers affordability, tax revenue, and market stability. They caution against premature panic as the final taxation structure remains uncertain.
Additionally, the government announced that fuel taxes, effective since January 2024, will remain unchanged. Petrol is taxed at Rs. 72 per liter, super diesel at Rs. 57, and auto diesel at Rs. 50.
With vehicle imports set to resume on February 1, 2025, all eyes are on the government’s final tax policies and their impact on the automobile industry. Importers hope for measures that promote affordability while ensuring market sustainability.
January 16, Colombo (LNW): The Sri Lanka Export Development Board (SLEDB) has officially announced the reinstatement of the Council of Ministers for Export Development, a significant move after an absence of 28 years.
This marks a pivotal moment in the nation’s efforts to revitalise its export sector and enhance economic growth.
Chairman of the Export Development Board, Mangala Wijesinghe, shared the news, revealing that President Anura Kumara Dissanayake will assume the role of chairperson of the newly reformed council.
Whilst there have been previous attempts to establish such a council in the past, these initiatives lacked proper implementation, leading to limited success.
However, Wijesinghe expressed confidence that the current council would be more systematically structured, with clear objectives and a strategic focus on expanding Sri Lanka’s export capabilities.
The primary goal of the newly formed council is ambitious yet essential: to elevate Sri Lanka’s export income of goods and services to an impressive 18 billion dollars by the end of the current year.
This target reflects the government’s determination to boost the country’s international trade and secure a more prominent position in global markets.
The re-establishment of the Council of Ministers for Export Development is expected to provide a much-needed coordinated approach to export growth, addressing key challenges and seizing new opportunities across various sectors.
January 16, Colombo (LNW): A shooting incident outside the Mannar Magistrate’s Court this morning has resulted in the deaths of two individuals and left two others injured.
The incident occurred at approximately 09:20 am, sending shockwaves through the local community.
Two assailants, riding a scooter, approached the victims and opened fire using a pistol. The gunmen fled the scene immediately after the attack, according to Police Spokesman SSP Buddhika Manatunga.
Emergency services quickly responded, and the wounded individuals were rushed to the hospital for treatment.
Despite efforts to save them, hospital sources confirmed that two of the victims succumbed to their injuries.
Initial investigations suggest that the victims were scheduled to testify in a case being heard at the court. It is believed they were on their way to the hearing when the gunmen targeted them.
The motive behind the attack remains unclear, but the police are focusing on the possibility that the shooting may be linked to the victims’ involvement as witnesses in a case.
The Mannar Police have launched an extensive investigation into the incident, with officers working to gather more information and identify the perpetrators.
Authorities are exploring all potential leads, including examining the nature of the case the victims were associated with and whether the shooting was an act of intimidation or a targeted assault.
January 16, Colombo (LNW): President Anura Kumara Dissanayake is currently in the midst of a pivotal four-day state visit to China, with his third day marked by participation in a significant “Investment Session” this (16) morning.
Organised by both public and private sector bodies, the event is seen as one of the central components of the President’s visit and underscores Sri Lanka’s focus on enhancing economic ties with China.
Following the investment discussions, President Dissanayake will pay his respects at the Monument to the People’s Heroes in Beijing, where he is expected to lay a floral tribute in recognition of the Chinese people’s struggles and sacrifices in the pursuit of national unity and progress.
Later in the day, President Dissanayake is set to hold high-level talks with Chinese Premier Li Qiang and Zhao Leji, the Chairman of the Standing Committee of the National People’s Congress of China.
These meetings are anticipated to focus on deepening the robust bilateral relationship between the two nations, with a particular emphasis on trade, investment, and cultural exchanges.
On the previous day, Sri Lanka and China took a significant step in strengthening their bilateral cooperation by signing 15 agreements across a range of sectors.
The agreements were formalised in an official ceremony attended by President Dissanayake and Chinese President Xi Jinping at the prestigious Great Hall of the People in Beijing.
These agreements encompass a broad spectrum of collaboration, spanning the fields of economics, culture, education, and media.
Minister of Foreign Affairs Vijitha Herath, who was present during the discussions, elaborated on the scope of the agreements.
He highlighted that the two heads of state engaged in detailed conversations regarding the future of the Sri Lankan economy, the exchange of cultural values, and the political dynamics between the two nations.
Minister Herath further noted that the newly signed agreements would greatly benefit Sri Lanka, particularly in terms of economic support and development.
He shared that President Xi Jinping had reiterated China’s ongoing commitment to Sri Lanka, with assurances of continued assistance in various forms, including financial aid and investment projects.
This support is expected to bolster Sri Lanka’s economic recovery and further enhance the strategic partnership between the two countries.
January 16, Colombo (LNW): The Colombo High Court has levied a hefty fine of Rs. 220 million on three individuals, including notorious drug dealer Gampola Vidanage Samantha Kumara, alias ‘Wele Suda’, and his wife, Gayani Priyadashani, alias ‘Suji’.
This penalty is considered one of the largest ever imposed in Sri Lanka under the Money Laundering Act for crimes associated with illicit drug trafficking.
The case, which has attracted significant attention, saw the court find the first accused, Gayani Priyadashani, guilty of 18 charges out of a total of 55.
Her husband, Wele Suda, was convicted on four counts, whilst the third defendant, Kambare Arachchige Wasundara, faced conviction on two charges related to the laundering of illicit proceeds.
Alongside the monumental fine, the court also issued a series of asset confiscations linked to the accused individuals.
Judge Adithya Patabendige, delivering the ruling, ordered the forfeiture of several high-value assets that had been registered under Gayani Priyadashani’s name.
These assets were identified as proceeds of the couple’s illegal drug trafficking activities. Amongst the confiscated items were luxury vehicles, including a BMW worth Rs. 4.45 million, a Prado Jeep valued at Rs. 6.6 million, and a Discovery Jeep valued at Rs. 4.5 million.
Furthermore, the authorities seized four properties, including a house situated on Bagatelle Road, Rs. 18 million held in a safe locker, 2,601 grams of gold, and furniture valued at Rs. 3.6 million.
In addition to the fines and asset seizures, the three accused were sentenced to eight years of rigorous imprisonment.
This prison term is expected to send a strong message to those involved in organised crime and the illicit drug trade.
The verdict underscores the government’s commitment to cracking down on money laundering and drug trafficking in the country, signalling a decisive shift towards greater accountability for individuals profiting from criminal activities.
Wele Suda, who has long been suspected of operating a vast drug trafficking network, has faced multiple legal challenges in recent years.
January 16, Colombo (LNW): A significant number of cargo ships—approximately 25 to 30—have had to abandon their docking at Sri Lanka’s ports due to ongoing delays in the container clearance process, Deputy Minister of Ports and Civil Aviation Janith Ruwan Kodithuwakku disclosed.
The vessels, unable to offload their cargo promptly, turned back to their ports of origin. Kodithuwakku made this comment during a site visit to the Rank Container Terminals (RCT) in Orugodawatta yesterday (15).
The issue of clearance delays at Sri Lanka’s ports was addressed in a meeting convened by President Anura Kumara Dissanayake on Sunday (12). The meeting brought together key stakeholders from customs, the Ports Authority, and other relevant parties to discuss solutions to the problem.
Following the discussions, customs officers committed to working around the clock—operating 24 hours a day, seven days a week—to expedite the clearance process and minimise delays.
The Container Transport Owners’ Association has since reported a noticeable improvement in the clearance speed, thanks to the collaborative efforts of the authorities.
However, despite these positive developments, long queues of container trucks continue to form outside the Orugodawatta customs yard, suggesting that the situation has not been fully resolved.
The congestion is still causing significant disruption to the smooth flow of goods at the port.
Additionally, the Association of Clearing & Forwarding Agents (ACFA) has raised concerns, emphasising that for further improvements, it is crucial for all involved institutions to extend their operational hours to 24/7.
This would ensure that the clearance process remains efficient and uninterrupted, particularly during peak periods when port traffic is heavy.
The ongoing delays have raised alarm among the business community, particularly importers and exporters, who are grappling with the uncertainty caused by the backlog of containers.
The government’s efforts to address the issue are still in motion, with a promise to further streamline operations in the coming weeks, aiming to restore Sri Lanka’s ports to their full operational capacity.
