Sri Lanka is charting an ambitious path to revive and redefine its tourism sector, with a new national branding campaign set to launch just after the Sinhala and Tamil New Year. Yet, global uncertainties—including a planned U.S. tariff hike—could present unexpected challenges to the country’s bold targets.

Sri Lanka Tourism Development Authority (SLTDA) and Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Buddhika Hewawasam announced that the campaign would formally kick off at the National Branding Conference later this month. The strategy aims to position Sri Lanka as a year-round destination, highlighting its cultural and ecological diversity. Importantly, this initiative will also align with Sri Lanka’s export sectors to present a unified, consistent image globally.

Initially aimed at nine priority markets, the outreach now spans 20 countries, including non-traditional markets like Poland, the Czech Republic, Saudi Arabia, and Australia. The tourism authorities aim to surpass 3 million arrivals in 2025, with consistent monthly figures of over 250,000 visitors.

Despite these efforts, external economic pressures could slow progress. The U.S. tariff hike—though unrelated to tourism—may reduce disposable incomes in key source markets. Higher global consumer prices could lead to reduced international travel, potentially affecting Sri Lanka’s growth trajectory. Currency fluctuations could also impact tourist affordability if the Sri Lankan rupee strengthens, making the destination less competitive.

Still, domestic efforts are in full swing. Digital marketing and public relations campaigns are underway, targeting high-potential regions. To support rising tourist volumes, infrastructure upgrades and experience enhancements are also in motion. The average tourist spends $171 daily; SLTPB aims to increase this to $200 through better services and attractions.

To formalize and standardize the sector, SLTDA has launched a registration drive targeting the informal tourism industry, which includes over 40,000 unregistered establishments. A mobile service is assisting these operators with guidance, training, and incentives. This move is not just about expanding the tax base but ensuring quality and safety standards, particularly for operators listed on online travel agencies (OTAs).

Luxury tourism is another key focus. With boutique hotels and high-end villas already attracting affluent travelers, SLTDA is looking to convert heritage bungalows in the North and East into premium stays. However, Hewawasam stressed that domestic aviation remains a barrier. Aircraft with at least 70-seat capacity are needed to improve accessibility and fully develop high-end travel experiences.

Colombo is also getting attention, with plans to boost its cultural appeal. Although the city has ample hotels and restaurants, it lacks vibrant events. The government is working with the CMC, UDA, and other bodies to launch a night market on Marine Drive and year-round art and craft events to enrich the capital’s tourist offerings.

Despite potential global setbacks, Sri Lanka remains determined. With a solid roadmap, diversified markets, and a bold branding initiative, the tourism sector is poised for recovery—if it can adapt swiftly to global economic shifts.

Sri Lanka’s apparel industry, a cornerstone of its economy, is grappling with a confluence of global and domestic challenges that threaten its stability and growth. Recent U.S. tariff hikes, escalating production costs, and a shifting global financial landscape are converging to create a precarious situation for the sector.

The United States’ imposition of a 44% tariff on Sri Lankan apparel imports marks a significant departure from previous trade policies that favored developing nations. This move jeopardizes a sector that earned nearly $6 billion in 2022, accounting for a substantial portion of Sri Lanka’s export revenue. In the first quarter of 2023, apparel exports to the U.S. plummeted by 22%, with overall exports dropping by 13.8% to $1.3 billion. Industry experts predict a potential $1 billion reduction in exports for the year, underscoring the severity of the situation .

Rising Production Costs and Domestic Economic Pressures

Compounding the impact of U.S. tariffs are domestic economic challenges. A steep 66% increase in electricity tariffs in February has significantly raised production costs, eroding the competitiveness of Sri Lankan apparel in global markets. The Central Bank’s decision to set a new benchmark interest rate at 8% aims to support economic recovery, but the high cost of borrowing continues to strain businesses.

Global Financial Shifts: The Rise of Digital RMB

Amid these challenges, a significant transformation in global finance is underway. The People’s Bank of China has announced the full integration of the digital RMB cross-border settlement system with ten ASEAN countries and six Middle Eastern nations. This development enables approximately 38% of global trade to bypass the SWIFT system, traditionally dominated by the U.S. dollar, and settle transactions using China’s digital currency. The digital RMB offers rapid settlement times and reduced transaction costs, with some cross-border payments completing in as little as 7 seconds and fees dropping by 98%.

This shift poses a systemic threat to U.S. dollar hegemony and signals a move towards de-dollarization in global trade. For countries like Sri Lanka, which have historically relied on dollar-dominated trade systems, this transition presents both challenges and opportunities.

The Need for Strategic Adaptation

Sri Lanka’s apparel sector must navigate this complex landscape by diversifying export markets, enhancing production efficiency, and engaging in strategic trade agreements. Embracing emerging financial technologies and exploring alternative settlement systems, such as the digital RMB, could offer new avenues for trade and economic resilience.

In conclusion, the convergence of U.S. tariff policies, domestic economic pressures, and global financial shifts necessitates a proactive and strategic response from Sri Lanka. Failure to adapt could result in significant economic setbacks, while timely and informed actions may position the country to capitalize on emerging opportunities in the evolving global trade environment.

The World Health Organization (WHO) has commended Sri Lanka for significantly reducing maternal mortality to 25 deaths per 100,000 live births in 2023, attributing this success to the country’s free and equitable maternal healthcare system, skilled midwifery, and strong commitment to continuous quality improvement.

This achievement was highlighted during a webinar series hosted in partnership with Sri Lanka’s Ministry of Health, as part of the WHO’s 2025 World Health Day campaign, themed “Healthy Beginnings, Hopeful Futures.”

While celebrating Sri Lanka’s progress, the WHO also raised concern over a rise in low birth weight babies, citing recent studies that emphasize the urgent need to investigate the underlying causes, especially the role of maternal nutrition. The organization warned that Sri Lanka’s ongoing economic challenges may be affecting access to nutritious food and essential healthcare services for pregnant women.

The WHO noted that maternal nutrition has long-term consequences on both the health of mothers and the development of children, urging policymakers to prioritize evidence-based interventions and nutritional support in national healthcare strategies.

Globally, maternal health remains a pressing concern, with nearly 300,000 women dying each year due to complications from pregnancy and childbirth. While maternal mortality has decreased by 40% since 2000, the burden remains high in specific regions—Sub-Saharan Africa accounting for 70% of global maternal deaths in 2023, and Central and Southern Asia contributing another 17%.

Looking ahead, the WHO emphasized the need for Sri Lanka to strengthen prenatal and postnatal services, bridge healthcare access gaps, and implement advanced medical practices to ensure continued improvements in maternal and newborn health.

The WHO reiterated its commitment to supporting Sri Lanka’s maternal health goals and called for sustained investmentin maternal well-being, emphasizing that healthy mothers are the foundation of a healthy future for the nation.

Opposition Leader Sajith Premadasa has accused the incumbent government of failing to deliver on its promises, stating that the only thing that has increased under their leadership is the cost of living.

Speaking at a public rally in Borella, Premadasa addressed the growing economic hardships faced by the public, asserting that the Samagi Jana Balawegaya (SJB) would never prioritize political gain over the people’s welfare.

“Has this government fulfilled the promises they made? Pause and consider the struggles you face today,” Premadasa told the crowd. “They pledged to improve your lives, but all we’ve seen is a relentless rise in the cost of living.”

He accused the government of making false promises to achieve political success and of deceiving the public with empty rhetoric.

“The government has become helpless due to its own failures,” Premadasa charged. “Do you think this administration – or the ones before – truly understand the pain of the people?”

Highlighting the SJB’s commitment to public service, the Opposition Leader vowed to build a new Colombo and stand with the people, rejecting the idea of politics driven by party interest.

“We do politics to serve,” he emphasized. “We are ready to empower a nation that’s struggling to keep up. We will never put party politics above your needs.”

Colombo, April 12 – The Consumer Affairs Authority (CAA) has launched a major crackdown on unethical trading practices, conducting 1,200 raids in recent days as part of a special festive season inspection program.

The CAA confirmed that intensified inspections will continue in the coming days, with a strong focus on essential goods, particularly Samba and Kiri Samba rice, eggs, and chicken, which are often sold at inflated prices during this time of year.

Officers have been deployed day and night, including holidays, to ensure consumer protection. Traders found guilty of violating regulations are being held accountable under the law. Offenses being targeted include:

• Failure to display prices
• Selling goods above marked prices
• Altering or falsifying product information
• Selling expired products
• Failure to issue receipts
• Imposing unauthorized purchase conditions
• Hoarding essential items
• Refusing to sell goods
• Misleading discounts and false promotional offers

The CAA stressed that strict legal action will be taken against violators to protect the rights of consumers and ensure fair trade practices during the high-demand festive period.

In addition, the Authority has launched a targeted monitoring program at long-distance bus stop shops, focusing on price violations, overcharging, and the sale of expired or improperly labeled goods.

The public is encouraged to remain vigilant and report any irregularities to the Consumer Affairs Authority’s hotline.

Colombo, April 12 – In a significant advancement toward a digital and cashless Sri Lanka, the Ministry of Digital Economy, in partnership with the Road Development Authority (RDA) and Hatton National Bank PLC (HNB), has launched a card payment system at highway toll gates, beginning with a pilot at the Kottawa and Kadawatha interchanges on the Southern Expressway.

The initiative is part of a broader effort to modernize the country’s transport infrastructure and support the national digital transformation agenda. Commuters can now pay tolls using international and local cards, including Visa, Mastercard, UnionPay International (UPI), LankaPay–JCB, and American Express (Amex).

HNB, acting as the Point of Sale (POS) system provider, has implemented the necessary infrastructure to support seamless and secure transactions at the toll gates. Importantly, the system is bank-agnostic, allowing cardholders from any issuing bank to use the service.

“This move reflects our commitment to building a digitally inclusive economy,” the Ministry stated, noting that the project brings real-time digital payments into everyday use, making travel faster, easier, and more secure for the public.

Following the successful pilot, the card payment system will be rolled out to all highway toll gates nationwide starting in May, significantly expanding public access to modern payment technologies.

The initiative underscores the government’s dedication to promoting digital inclusion, enhancing public convenience, and modernizing public infrastructure through technological innovation.

The International Monetary Fund (IMF) has announced that it needs additional time to assess the full impact of recent global shocks on Sri Lanka’s economic recovery and the progress of its ongoing reform program.

This statement followed the conclusion of an IMF visit on April 3, led by Senior Mission Chief Ivan Papageorgiou, as part of the review under the Extended Fund Facility (EFF).

While acknowledging signs of economic recovery, the IMF highlighted that external vulnerabilities and global uncertainties continue to complicate Sri Lanka’s economic outlook and the evaluation of reform outcomes.

Despite these challenges, the IMF praised Sri Lanka’s reform agenda, citing several positive developments:

• Projected economic growth of 5% in 2024
• Inflation decline to -2.6%
• Gross official reserves rising to US$6.5 billion by March 2025
• Strong fiscal reforms contributing to public finance stability

The IMF also commended the Central Bank of Sri Lanka for effective foreign exchange management, and emphasized the need to maintain reform momentum amid global economic shifts.

The Fund reiterated its support for Sri Lanka’s efforts but noted that a comprehensive review would require further analysis in the context of evolving global conditions.

In a significant move to boost Sri Lanka’s energy capacity, the Ceylon Electricity Board (CEB) has signed a Power Purchase Agreement (PPA) for the construction of the Sahasdanavi Power Plant, a 350 megawatt (MW) combined cycle facility.

The plant will be developed, owned, and operated by Sahasdanavi Company Limited, with ownership set to transfer to the CEB after 25 years as per the agreement terms.

Approved by the Public Utilities Commission of Sri Lanka (PUCSL), the project aims to improve electricity reliability and affordability across both residential and commercial sectors.

Construction is scheduled to begin shortly, with electricity expected to be supplied to the national grid in open cycle mode within 30 months. Full combined cycle operations are planned to begin 12 months after the initial phase.

The new plant is a key part of the government’s broader strategy to strengthen energy security and meet growing power demands.

Showers or thundershowers will occur at several places in Central, Sabaragamuwa, Southern, Western and Uva provinces and in Ampara and Batticaloa districts during the afternoon or night.

Showers may occur in the coastal areas of Western and Southern provinces and Puttalam, Jaffna and Mannar districts in the morning too.

Fairly strong winds of (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.

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

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05^th to 14^th of April in this year. The nearest areas of Sri Lanka over which the sun is overhead today (12^th) are Adiyakulam, Veppankulam, Padawiya and Kuchchaveli at about 12:11 noon.