Philippine Airlines has appointed its first foreign leader, tapping on former SriLankan CEO Richard Nuttall to lead the national carrier.
Nuttall will take helm of the Manila-headquartered carrier from 29 May, the airline discloses. He replaces outgoing president Stanley Ng, who will move to airline parent PAL Holdings as vice president and director.
Nuttall’s appointment comes amid efforts aimed at “strengthening its leadership team and a bolder push in the international market”, says the carrier. “Philippine Airlines has always been committed to working with the best people across all levels, and I welcome Richard Nuttall as a worthy addition to an already formidable team. I am confident that he will create and develop sustainable growth for PAL,” adds airline chair Lucio Tan.
Under Nuttall’s tenure, SriLankan returned to profitability after being hit by a double-whammy of the pandemic and political upheaval. FlightGlobal has reached out to SriLankan for more details about Nuttall’s departure.
At PAL, Nuttall will be supported by Carlos Luis Fernandez, who will be promoted to the role of operating chief and executive vice president from 29 May.
Sri Lanka’s tea export earnings in the first quarter of 2025 climbed 5% year-on-year (YoY) to $370.9 million, marking the highest Q1 performance in over a decade, according to Asia Siyaka Commodities PLC. Export volumes also rose modestly, reaching 63.2 million kilograms, up from 62.3 million kilograms in Q1 of 2024.
The average Free on Board (FOB) value per kilogram for the quarter was $5.87, exceeding last year’s $5.69. In rupee terms, however, total earnings dropped slightly to Rs. 109.9 billion from Rs. 110.9 billion, largely due to the strengthening Sri Lankan Rupee, which appreciated from Rs. 313 to around Rs. 296 against the US dollar.
The value-added segment of exports saw notable growth, increasing its share to 56% of total shipments, compared to 53% last year. This rise was driven by higher volumes in packaged tea, tea bags, instant tea, and green tea categories. March alone saw tea exports totaling 23.43 million kilograms, an increase of 2.18 million kilograms from the same month in 2024. Although tea bags slightly declined, other product categories recorded year-on-year growth.
In terms of pricing, the March FOB value per kilogram in rupee terms dropped to Rs. 1,753.16 from Rs. 1,795.87. Yet in dollar terms, the average rose slightly by $0.04 to $5.92. Over the quarter, the average FOB in rupees declined by Rs. 40.63 compared to last year, though it reflected a $0.19 gain in US dollar terms.
Iraq remained Sri Lanka’s top tea export destination, increasing its purchases by 7% to 9.02 million kilograms. Russia followed with 6.33 million kilograms, slightly below the previous year’s figure. Libya experienced a dramatic surge, importing 5.31 million kilograms compared to just 1.03 million kilograms last year—a 416% increase.
Other key markets presented mixed results. Exports to the UAE dropped 35% to 4.54 million kilograms. Turkey imported 3.32 million kilograms (down 19%), while Chile saw a 41% rise to 3.07 million kilograms. Iran imported 2.78 million kilograms, slightly ahead of China’s 2.47 million kilograms. Saudi Arabia and Germany were also notable importers, with 2.23 million and 2.22 million kilograms respectively.
Despite a marginal drop in rupee revenue, the strong performance in export volumes and rising dollar-denominated earnings reflect a positive outlook for Sri Lanka’s tea industry moving forward, supported by increased demand and a growing share of value-added products.
Port City Colombo is being positioned as a leading fintech hub in South Asia, aiming to attract global investment, foster startup innovation, and integrate with international financial ecosystems.
This vision is outlined in a new report titled “Enhancing Port City Colombo as a Leading Fintech Hub in South Asia”, presented by Fintech Association of Sri Lanka (FASL) Founding President Rajkumar Kanagasingam to CHEC Port City Colombo Managing Director Xiong Hongfeng during the FinTech World Cup Regional Competition.
The initiative has backing from global fintech experts, with Professor Douglas Arner from the University of Hong Kong serving as the chief consultant.
The FASL, partnered with major global fintech networks such as the Dubai International Financial Centre (DIFC) Innovation Hub and the Global Finance and Technology Network (GFTN), is supporting the transformation of Port City into a competitive global fintech destination.
At the heart of this initiative is the Colombo International Financial Centre (CIFC) Fintech Innovation Hub. While full infrastructure is still under development, early operations may begin within Colombo’s Central Business District.
The hub is envisioned to offer fintech startups access to global markets, capital, and mentorship, modeled after successful ecosystems like Dubai’s DIFC and Singapore’s regulatory framework.
Dubai’s DIFC has become the largest financial innovation ecosystem in the MEASA region, supporting over 700 startups through regulatory sandboxes, innovation licenses, and accelerator programs. It has built robust international ties with financial centres such as New York, London, Singapore, and Mumbai.
Singapore, too, serves as a fintech benchmark, with its Monetary Authority (MAS) promoting innovation through regulatory sandboxes, venture capital initiatives, and the globally renowned Singapore FinTech Festival. From 2019 to 2022, Singapore attracted over $34 billion in fintech investment.
Port City Colombo, with its proposed CIFC, aims to emulate and adapt these models. Unlike India’s complex multi-agency regulatory landscape, the CIFC will offer a streamlined, unified framework that simplifies compliance and encourages growth. It also plans to attract regional startups, including those already active in Dubai, by offering investor-friendly policies and tax incentives.
To bring this to life, the CIFC Fintech Innovation Hub will incorporate regulatory sandboxes, startup accelerators, global partnerships, academic collaboration, and proof-of-concept platforms to support innovation and market entry.
With strategic leadership and global partnerships, Port City Colombo is poised to emerge as South Asia’s leading fintech gateway, redefining the region’s economic future through innovation and integration.
The Sri Lankan government is urgently seeking alternative funding for over a dozen projects previously supported by the United States Agency for International Development (USAID), following a sudden freeze on foreign aid by the U.S. government. This move has disrupted several critical national programs across sectors like agriculture, climate change, disaster preparedness, entrepreneurship, and border security.
At the time of the aid freeze, five key projects across the Ministries of Justice, Finance, and Environment were actively receiving USAID support. These contributions amounted to approximately 1.34% of the government’s budget for major programs. Since 2019, USAID has provided Sri Lanka with financial support totaling US$233.4 million, with disbursements including $20.4 million in 2019, $41.9 million in 2021, $26 million during the 2022 crisis, and over $42 million in 2024 for governance and market-driven growth.
Among the affected initiatives is the Finance Ministry’s PARTNER project, a $22.9 million program developed with Deloitte Consulting to improve trade regulations through mechanisms such as a trade portal and biotech park. This, along with the $15 million “Efficient and Effective Justice” project, has now been suspended. The Sri Lanka Energy Project, worth $19 million, which supported institutions like the CEB, LECO, and SLSEA in promoting renewable energy, is also impacted. Additionally, USAID had allocated $46 million in 2023 to mitigate the country’s fertilizer crisis.
With USAID funds on hold, the Finance Ministry has confirmed it is actively pursuing new funding avenues. Negotiations are underway with foreign donors, friendly governments, and international financial institutions with a history of supporting Sri Lanka. The government is also looking at reallocating local resources by adjusting budget priorities and expenses to ensure the continuation of vital projects.
In response to the aid cut, there is a growing emphasis on public-private partnerships (PPPs) to attract private investment into public infrastructure and development. This shift aims to minimize reliance on foreign aid while sustaining momentum in essential sectors.
Furthermore, Sri Lanka is engaging in discussions with major multilateral lenders such as the World Bank and Asian Development Bank to secure loans or grants to fill the void left by USAID. While these efforts are ongoing, officials acknowledge the abrupt withdrawal of U.S. assistance poses serious challenges, including potential project delays and the urgent need to mobilize replacement funding.
A senior finance ministry official noted that the government remains committed to continuing these development initiatives despite the setback. He emphasized the importance of ensuring that critical services and project timelines are not adversely affected during the transition to alternative funding sources.
In conclusion, Sri Lanka is taking strategic steps to manage the fallout from the USAID freeze by diversifying its funding sources, leveraging domestic and private sector resources, and strengthening ties with multilateral institutions. However, the swift cessation of American aid has undoubtedly complicated the financial landscape for development planning in the country.
Sri Lanka’s service export sector, especially its IT and freelance industries, is facing a significant challenge following the introduction of a 15% tax on services provided to international clients. Effective from April 1, 2025, this new tax policy, announced as part of the 2025 national budget, aims to boost public revenue while aligning with global digital taxation trends.
However, experts warn that the move could severely impact Sri Lanka’s foreign exchange earnings, particularly in the rapidly expanding IT services and freelancing sectors.
In a major policy shift, the government has removed income tax exemptions on export services. Previously, earnings from export services were tax-exempt, provided they were routed through the local banking system.
This exemption had spurred steady foreign currency inflows, with service export revenues reaching US$ 3.46 billion in 2024—accounting for about 21.4% of the country’s total export earnings. The sector grew by 8.51% year-on-year, demonstrating its increasing importance as a foreign exchange earner.
However, the introduction of the 15% tax has raised concerns among stakeholders. Freelancers will be exempt from tax on their first Rs. 150,000 of income, with a 6% tax on the next Rs. 85,000, and the remainder taxed at 15%.
For larger service providers, the tax could lead to reduced earnings, higher operational costs, and less competitive rates. While provisions to exempt foreign taxes aim to soften the blow, the overall impact is expected to be negative, especially for IT freelancers and service exporters.
The tax’s impact is particularly concerning for the digital economy, which has thrived on relatively low taxation, encouraging both local talent and foreign clients.
Experts argue that this new burden could discourage investment, deter freelancers from maintaining competitive pricing, and reduce overall financial incentives for those in the sector. The tax could also exacerbate Sri Lanka’s ongoing brain drain, with talented professionals potentially seeking more favorable tax environments abroad.
Former Treasury Secretary has warned that the new tax could cause a “shock” to freelancers, who are accustomed to retaining their full earnings. This, in turn, could lead many to reconsider operating in Sri Lanka and explore more tax-friendly markets. As global competition in the tech sector intensifies, Sri Lanka risks losing its edge in attracting and retaining freelance talent.
The government has defended the tax policy, citing the country’s fiscal constraints and the need for additional revenue. Cabinet Spokesman Nalinda Jayatissa explained that the measure is essential for meeting the country’s economic challenges.
However, the policy’s potential to diminish the competitiveness of Sri Lanka’s IT and freelance service sectors cannot be ignored. As the government strives to increase foreign exchange earnings, this tax may inadvertently lead to reduced participation in the sector.
According to the Sri Lanka Export Development Board (EDB), Sri Lanka’s service export revenue stood at US$ 3.46 billion in 2024. If the new tax is applied, it could result in a loss of approximately US$ 519 million, or Rs. 153.2 billion—an alarming figure for an economy struggling with fiscal imbalances.
While the tax may be seen as a necessary fiscal tool, its potential to harm Sri Lanka’s IT and freelance service sectors calls for a reevaluation of the policy.
The government must consider measures to mitigate the negative effects on the sector’s growth and competitiveness, ensuring that Sri Lanka’s service export industry remains resilient and attractive to both local and international talent.
India has taken a series of strong diplomatic and strategic measures in response to the deadly Pahalgam attack, which claimed the lives of 26 people. The Indian government summoned Pakistan’s top diplomat in New Delhi to express its protest. It also closed the Attari-Wagah border crossing, the main land link between the two countries, with immediate effect. Additionally, India suspended the Indus Waters Treaty, which previously facilitated water sharing between the two nations. As part of its response, India expelled Pakistani military advisers and reduced the staff strength of its High Commission in Islamabad from 55 to 30. Furthermore, India cancelled all visas issued to Pakistani nationals under the SAARC visa exemption programme.
In retaliation, Pakistan has announced a range of countermeasures. Islamabad confirmed the impending closure of the Wagah border, although it stated that it would remain open until April 30. The Pakistani government also ordered all Indian citizens, with the exception of Sikh pilgrims, to leave the country within 48 hours. Following India’s move, Pakistan suspended all visas issued to Indian nationals under the SAARC programme and similarly reduced the staff of the Indian High Commission in Islamabad to 30. Moreover, Pakistan closed its airspace to Indian aircraft and suspended all trade activities with India.
The International Monetary Fund (IMF) has stressed the urgent need for Sri Lanka to diversify its export markets and foster an investment-conducive environment, particularly amid uncertainties stemming from recent tariff adjustments.
Speaking at the 2025 Spring Meetings of the World Bank Group and the IMF, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, addressed the challenges presented by sudden policy changes during a Regional Economic Outlook – Asia and Pacific session held on April 24.
Referring to the recent tariff modifications introduced by the Sri Lankan government, Srinivasan noted that such changes have complicated economic forecasting and programme implementation. “It became quite difficult to put together a macro framework,” he stated, citing the impact on exports, growth, and investor confidence.
Highlighting the vulnerability of key sectors such as apparel, Srinivasan warned that excessive tariffs could significantly hamper competitiveness. “This is a country affected by high tariffs… the garment sector could see notable impacts,” he said, adding that regional integration and export market diversification are vital to mitigating external risks.
On the investment front, Srinivasan urged the Sri Lankan government to support private sector growth without compromising fiscal stability. “Promote investment not through tax exemptions, but by creating an environment where domestic private investment can thrive,” he advised.
The IMF also acknowledged the progress achieved under Sri Lanka’s ongoing programme, particularly regarding macroeconomic stabilization, reduced inflation, and modest growth recovery. Srinivasan concluded that the current environment presents an opportunity to undertake broader structural reforms to sustain long-term growth and resilience.
Katarina Zimmer put vinegar to the test as a cleaning product and discovered a wide range of benefits, for people and the planet.
A few months ago in my new Berlin apartment, my toilet and I were at war. No amount of scrubbing or toilet cleaner would evict the limescale coating inside. Frustrated, I turned to Google and stumbled across a page recommending vinegar – something that the previous inhabitant had left behind in abundance. After dropping two tablespoons full of “Essigessenz” – essentially concentrated vinegar – into the toilet and waiting for half an hour, I scrubbed and the limescale came off in a moment.
Since then, I’ve enthusiastically used vinegar to rid my world of limescale. I’ve found it even more effective than my regular kitchen spray cleaner for getting my sink sparkling. That includes the faucet, which I wrapped in a vinegar-soaked kitchen tissue – whereas my regular cleaning spray dribbled off. And rather than having to buy special tablets to clean my limescale-smothered glass kettle, I simply poured two tablespoons of concentrated vinegar inside and boiled it. As the limescale crackled off, it made a satisfying sizzling sound.
I wondered if vinegar had other advantages. Did it also kill off bacteria and other germs? And, importantly, was this simple, natural product better for the environment and for my health than regular cleaning products?
The internet is full of sustainability influencers and green cleaning blogs that advertise vinegar as a jack-of-all-trades and a safer and “greener” alternative to “toxic” cleaning products. These claims make sense on the surface; vinegar is after all just fermented alcohol and has long been used as a food preservative, in salad dressings, as well as a household cleaner – but I wanted evidence. After interviewing three experts, I learned that while some of these claims are true, the benefits of vinegar depend a lot on how it’s used and the kind of grime you’re trying to get rid of.
Limescale dissolves more easily in acidic fluids like vinegar (Credit: Getty Images)
Reassuringly, Eric Beckman, a chemical engineer and emeritus professor at the University of Pittsburgh in Pennsylvania, told me that the best cleaning use for acetic acid – the main component of vinegar – is exactly what I had been using it for: as a descaler. Limescale – and rust, for that matter – consists of certain ions that dissolve more easily in acidic fluids like vinegar, he says. Beckman uses vinegar himself to get limescale off mirrors, while the microbiologist Dirk Bockmühl of Germany’s Rhine-Waal University of Applied Sciences prefers using lemon juice, which contains citric acid, which he says is a more effective descaler and smells better. (Read more about why vinegar is such an effective cleaner.)
That said, vinegar doesn’t work on everything. Beckman says that soap does a better job at removing oily films on dishes, while baking soda is effective against processed oils that have stuck onto surfaces while cooking. (Read more about whether baking soda is environmentally friendly).
However, Beckman expresses exasperation about a popular remedy of mixing vinegar together with baking soda. The mixture is chemically quite useless, he says, as the acid of vinegar and the base of baking soda effectively cancel each other out. “I use both, but not together,” says Beckman. “Together, they give you nothing.”
And while vinegar is often touted as a powerful antimicrobial, Bockmühl says, the truth is more nuanced. In a 2020 study, Bockmühl and his colleagues put vinegar to the test against a selection of disease-causing bacteria, viruses and fungi. While many internet recommendations suggest adding a dash of vinegar into a bucket of water for cleaning, Bockmühl found that its anti-microbial effects only kick in at an acetic acid concentration of 5% – its concentration in pure vinegar. And it was only fully effective at distilled concentrations of 10% – to which the researchers added a dash of citric acid – in killing off five common bacteria, including Escherichia coli and Staphylococcus aureus, as well as a mould, a yeast and a weakened strain of the vaccinia virus. Other studies have found that similar concentrations also work against Sars-CoV-2, the virus that causes Covid-19.
But even these concentrations didn’t work against the MRSA bacterium, an especially stubborn strain of Staphylococcus aureus that’s resistant to certain antibiotics, while countless bacteria remain untested. Many bacteria – including the ones that ferment alcohol into vinegar – thrive in acids, Beckman adds: “Then they’ll be like, ‘ooh, yay, vinegar.'” Some moulds, too, are resistant to acetic acid while some viruses – like norovirus – might be, too, Bockmühl suspects. Beckman says that soaps are more effective against bacteria, while standard disinfectants work better against viruses and moulds. Harsh treatments like bleach will definitely kill everything, Beckman says – although bleach can be unsafe if used incorrectly.
Vinegar is less effective against processed oils that have stuck onto surfaces during cooking (Credit: Getty Images)
Bockmühl stresses that, even for the germs that vinegar does kill, a relatively high concentration is needed. The concentration won’t be adequate “if you just put a teaspoon of vinegar into your cleaning solution”, Bockmühl says.
However, the higher the dose of acetic acid, the more irritating it can be on the skin, he adds. It is harmful if it gets into your eyes. Surfaces can suffer, too: vinegar corrodes natural stone and metals like copper, bronze and brass, according to the Italian chemist Dario Bressanini’s book The Science of Cleaning. And in dishwashers or washing machines, it can harm the rubber gaskets used to seal them, while it could also damage coffee machines and strip away the coating on tiles and grout, Bressanini writes. But Bockmühl assures me that it’s fine to use vinegar on glass and ceramic surfaces – like my toilet – and stainless steel sinks.
The trouble that Bockmühl sees with using homemade cleaning products is that they don’t come with instructions or safety recommendations. “They might be safe if you know what you’re doing,” he says, “but there are a lot of really stupid and absurd recommendations on the internet”.
To learn more about how the health risks of vinegar compare with those of conventional cleaners, I called up Nicola Carslaw, professor of indoor air chemistry at the University of York in the UK. Her concern is how cleaners disrupt the air in our homes and buildings. It’s known that professional domestic cleaners tend to have higher rates of asthma than other occupational groups, although it’s proven difficult to pin that on any single product or ingredient.
In a recent study, Carslaw and her colleagues tested 23 different cleaning products including dishwasher fluid, washing up liquid and spray products, and found that many of them released volatile chemical compounds (VOCs). Some of these compounds, like terpenes, are often added to give pleasant aromas, such as lavender or pine oil, but they’re highly reactive in the atmosphere. Terpenes for instance, easily react with ozone in the air, creating miniscule particles. In general, inhaling particles of this size has been linked to lung and heart disease.
“Your nose is a really good filter for the big particles, but the smaller ones can get all the way into your lungs [and] into the bloodstream,” Carslaw says. Interestingly, in her study she found that cleaning products marketed as “natural” or “green” didn’t seem any healthier in this regard. “The natural/green ones had as many, if not more VOCs as the standard cleaners, and in many cases they were more reactive,” she says.
Vinegar passes muster on any sustainability scale because it’s simple and it’s degradable – Eric Beckman
But vinegar, by contrast, only consists of water and acetic acid (and a few other substances that make the difference between red and wine vinegar, for instance). As such, “it’s just not going to be chemically reactive in the same way”, Carslaw says. Another advantage of vinegar is that it’s usually applied on a cloth to wipe surfaces rather than used as a spray, Carslaw adds. Research shows that cleaning products applied in spray form have more harmful effects on the respiratory system than liquids and wipes. (Read more about the health risks associated with cleaning products in Jessica Bradley’s story).
“When you spray something, you’re turning the chemical into a form that’s much easier to breathe [in] than if you have the liquid,” Carslaw says. That said, she always advises gloves when there’s risk of skin contact, good ventilation and avoiding excessive cleaning, whatever product is used. (Read more about whether we‘re cleaning too much for our own good).
Vinegar quickly breaks down and therefore its environmental impact is low (Credit: Getty Images)
This all left me with one remaining question: is using vinegar more environmentally friendly than conventional cleaners?
That’s a hard question to answer, says Beckman. Ideally, there would be life cycle analyses for cleaning products which track impacts from cradle to grave, tracing each ingredient back to its source, how it’s produced, transported, packaged and eventually disposed of. But very few companies do that thoroughly, even if they do brand their products as “green”, Beckman says.
“But I will say this about vinegar. [Its] strength is its simplicity,” Beckman says. Conventional cleaners can consist of more than a dozen different ingredients, many of them industrially manufactured in energy-consuming processes, he says. Acetic acid is born through the natural, yeast-driven fermentation of alcohol, which itself comes from the natural fermentation of sugar. The biggest environmental impact of vinegar-making is where the sugar came from – whether it’s grapes, apples, grains, potatoes, or rice – which are largely renewable resources. Bockmühl cautions that this only applies to naturally fermented vinegars, the ones typically sold as food products; there are also synthetic vinegars which are derived from fossil fuels, meaning they come with all the environmentally harmful impacts of oil and gas extraction.
Even at the very end of its life, vinegar has little impact. While many ingredients in soaps are tough molecules and don’t easily biodegrade, sometimes continuing to kill organisms once they’re in the environment, vinegar quickly breaks down, Beckman says. “Vinegar passes muster on any sustainability scale because it’s simple and it’s degradable,” he says.
After discovering all of this, I felt even better about using vinegar. I probably won’t rely on it for ridding my surfaces of germs, but I’ll keep using it to remove limescale and look forward to trying it out on the next rusty item I find. I’m happy to put up with the smell, knowing that I’m using a sustainable product that’s likely better for my health.
The Deputy Prime Minister and Minister of Foreign Affairs of the United Arab Emirates (UAE), Sheikh Abdullah Bin Zayed Al Nahyan, reaffirmed the UAE’s commitment to deepening bilateral relations with Sri Lanka, with particular focus on energy, tourism, foreign investment, and employment sectors.
Sheikh Abdullah made these remarks during an official visit to Sri Lanka on April 22, in a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat. Accompanied by a high-level UAE delegation, the Deputy Prime Minister emphasized that the visit aims to expand longstanding ties and enhance mutual economic cooperation.
Offering warm congratulations to President Dissanayake and the people of Sri Lanka, Sheikh Abdullah pledged the UAE’s full support for Sri Lanka’s new development agenda, praising the President’s commitment to national rebuilding and his constructive approach to international relations.
In response, President Dissanayake underscored the government’s efforts to establish a stable, investment-friendly environment, with robust legal safeguards now in place to protect foreign investments. He detailed ongoing initiatives in debt restructuring, economic stabilization, and highlighted key investment opportunities in port development, Port City Colombo, tourism, energy, and transport infrastructure.
The President reiterated his government’s strategic goal of positioning Sri Lanka as a leading regional investment and tourism hub.
Also in attendance were Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, senior officials from the Presidential Secretariat, and the visiting UAE delegation, including UAE Minister of State Ahmed Ali Al Sayegh, UAE Ambassador to Sri Lanka Khaled Nasser Al Ameri, and other high-ranking dignitaries from the Ministry of Foreign Affairs of the UAE.
The Department of Census and Statistics has released the official poverty line for February 2025, setting the national threshold at Rs. 16,318 per individual per month. This figure represents the minimum income required to meet basic needs such as food, shelter, and essential services.
Based on this benchmark, a family of four would require a minimum of Rs. 65,272 per month to maintain essential living standards.
The poverty line, which is revised monthly, varies by district. For February, the Colombo District reported the highest threshold at Rs. 17,599, while Monaragala District recorded the lowest at Rs. 15,603.
Officials attribute the marginal decline in the poverty line to a drop in the National Consumer Price Index (NCPI) for February compared to January 2025.
The complete district-wise poverty line chart for February 2025 is available via the Department of Census and Statistics.
