Hambantota International Port (HIP) has recorded an extraordinary 151% year-on-year surge in cargo throughput, reaching 6.03 million metric tons by the end of September 2025 compared to 2.39 million tons in the same period last year. The growth comes despite logistical challenges triggered by the lifting of Sri Lanka’s vehicle import ban earlier this year.

The removal of import restrictions led to increased congestion and clearance delays, testing the port’s storage and operational capacities. To address these pressures, HIP’s Operations Department implemented a comprehensive optimisation plan—reconfiguring yard allocation, balancing container flows, and enhancing stacking strategies to maintain efficiency. Additional manpower was deployed, with an expanded team of stevedores and extended yard space ensuring uninterrupted vessel operations.

According to internal financial data, the port’s revenue for the first nine months of 2025 is estimated at over US$ 132 million, marking a 48% rise from the same period in 2024. Expenditure climbed to around US$ 84 million due to infrastructure expansion, higher energy costs, and increased staffing, though net operating profit improved significantly, highlighting the port’s growing operational strength.

HIP’s expansion momentum continues on several fronts. In late 2024, the port commissioned US$ 41 million worth of cranes, lifting its container handling capacity to 1 million TEUs annually. The port’s bunkering and energy services have also advanced sharply, with LPG throughput up by 38% and bunker fuel volumes rising 21% year-on-year. Vehicle transshipment, one of HIP’s key revenue drivers, grew 26% this year, reflecting its strengthening role as a regional automotive logistics hub.

HIPG CEO Wilson Qu stated, “As we approach the close of 2025, Hambantota Port remains firmly focused on reliability and resilience under rising demand. Our investments in technology, capacity, and workforce development underscore our long-term commitment to supporting Sri Lanka’s logistics and energy ambitions.”

The port’s performance places it among the fastest-growing maritime facilities in South Asia. With strategic expansion projects and sustained revenue growth, Hambantota International Port is evolving into a fully integrated multipurpose logistics center, reinforcing Sri Lanka’s position on key global shipping routes.

Sri Lanka is set to introduce a competitive and rules-based tax framework for large-scale investors, following discussions with the International Monetary Fund (IMF). Board of Investment (BOI) Chairman Arjuna Herath confirmed that the new regime will target projects exceeding 50 million US dollars.

The move comes after the government suspended long-standing tax holidays of up to 20 years under the Strategic Development Project (SDP) Act. These holidays were criticized for allowing arbitrary, negotiated taxes that lacked transparency. The IMF-backed reforms aim to restore confidence among investors by establishing clear and predictable tax policies.

“We have worked closely with the IMF to implement SDP project concessions,” Herath said. “Projects over 50 million dollars will benefit from attractive concessions based on thresholds, making Sri Lanka more competitive.” The reforms will also end the practice of tax-free salaries for senior executives in SDP companies.

Currently, Sri Lanka imposes a 30 percent corporate tax rate, higher than the 20 percent rates in East Asian nations such as Vietnam and Cambodia. Herath highlighted that countries with monetary stability, including Singapore and Cambodia, maintain competitive environments with stable inflation and minimal currency crises, enabling them to offer investor-friendly regimes without arbitrary tax interventions.

 Sri Lanka has historically experienced balance of payments crises that often led to ad hoc tax hikes. The first major crisis occurred in 1952/53, prompting income and import tax increases. Tax holidays were previously suggested by the Central Bank to offset uncompetitive taxes. Presently, global trends, including US pressure on countries with low corporate taxes, are influencing Sri Lanka’s new strategy, aiming for fiscal stability and international alignment.

Latest SDP and Mega Project Investments: In the first half of 2025, Sri Lanka approved over 12 projects qualifying as SDPs, totaling investments exceeding 800 million US dollars. Major sectors attracting investment include renewable energy, port infrastructure, IT parks, and manufacturing hubs. The government’s intention is to provide streamlined concessions to encourage further foreign investment, ensuring that large-scale projects benefit from a transparent and competitive tax framework.

The Sri Lanka Tourism Development Authority (SLTDA) reports that 103,491 tourists visited the country during the first 20 days of October 2025.

According to SLTDA data, India remains the top source market, contributing 29,460 visitors (28.5%), followed by 8,529 from the United Kingdom, 8,063 from China, 6,305 from Germany, and 5,469 from Russia.

With these arrivals, Sri Lanka’s total tourist arrivals for 2025 have reached 1,828,985. The top five source markets so far this year are:

• India: 404,752 visitors
• United Kingdom: 170,422
• Russia: 127,613
• Germany: 113,293
• China: 109,653

The SLTDA also noted that 158,971 foreign nationals visited the country in September 2025, marking a 30.2% increasecompared to September 2024, reflecting sustained growth in the island’s tourism sector.

The Department of Railways has announced that several train journeys along the Main Line, which were temporarily suspended due to a train derailment and adverse weather conditions, have resumed operations starting today (23).

Accordingly, several trains operating between Kandy and Colombo Fort, as well as from Colombo Fort to Kandy, are functioning from 4:30 a.m. today.

The following trains are in operation this morning:

• 4:30 a.m. – Kandy to Colombo Fort
• 5:00 a.m. – Kandy to Colombo Fort
• 6:15 a.m. – Kandy to Colombo Fort
• 5:55 a.m. – Colombo Fort to Badulla

Additionally, two trains from Kandy to Badulla will depart at:

• 11:15 a.m.
• 12:35 p.m.

However, the 7:00 a.m. train from Colombo Fort to Kandy will not operate today (23), the Department of Railways stated.

The National Water Supply and Drainage Board (NWSDB) has announced that a 10-hour water cut will be in effect in several areas within the Colombo District today (Wednesday, October 23), from *10:00 a.m. to 8:00 p.m.

According to the NWSDB, the interruption is due to a power supply failure at the Thulumuhuwa main pumping station, which provides water to the Ambatale Water Treatment Plant. As a result, the water supply from the Ambatale facility will be temporarily suspended.

The following areas will be affected by the water cut:

Colombo 01–15, Battaramulla, Pelawatta, Hokandara, Koswatta, Thalawathugoda, Kotte, Rajagiriya, Mirihana, Madivela, Nugegoda, Nawala, Kolonnawa, IDH, Kotikawatta, Angoda, Wellampitiya, Orugodawatta, Maharagama, and Boralesgamuwa.

The Water Board has advised residents in the affected areas to store adequate water in advance and to use water sparingly during this period.