Showers may occur in Western, Southern and North-western coastal areas in the morning too.
Heavy rainfall of above 100 mm are likely at some places in Western, Sabaragamuwa, Central, North-western and North-central provinces.
Misty conditions can be expected at some places in Central, Sabaragamuwa, Uva and North-central provinces during 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.
April 03, Colombo (LNW): US President Donald Trump has introduced a broad set of reciprocal tariffs, imposing a minimum 10% tax on all imports and significantly higher rates on countries with which the US has trade deficits.
As a consequence, Sri Lanka now faces the sixth-highest tariff rate globally—44%, a sharp rise from its previous 12.2% rate.
Sri Lanka’s economy is particularly vulnerable to this tariff hike, as 25% of its total exports, mainly apparel, are shipped to the US. In 2024, Sri Lanka earned USD 3 billion from exports to the US, with USD 346 million generated in January 2025 alone.
Economists warn that the apparel sector, a key driver of employment, could suffer significant losses due to the steep increase in tariffs. A potential decline in export revenue could threaten jobs, leaving thousands unemployed.
Dr. Harsha de Silva, a key opposition leader from the Samagi Jana Balawegaya (SJB), has called on the government to take swift action to safeguard trade relations with the US, Sri Lanka’s largest export market.
He emphasized that inexperience cannot be an excuse for inaction and offered to assist the government in addressing the trade challenges.
Experts caution that higher tariffs will increase the cost of Sri Lankan imports and reduce the competitiveness of Sri Lankan goods in the US market.
To counter these challenges, Sri Lanka must adopt strategies to mitigate the negative impacts of shifting global trade policies.
The government has already imposed various levies, such as the port and airport levy and the export development CESS.
However, these para-tariffs raise costs for businesses outside Board of Investment (BOI) zones, making it harder for them to compete internationally.
Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe announced plans to implement a long-awaited tariff policy that aims to create a predictable and transparent trade framework.
This new policy will help exporters secure raw materials at competitive prices. Other proposed measures include setting minimum prices for key inputs, lowering energy and transport costs, and enhancing the business environment to attract investment.
A senior economist, speaking anonymously, highlighted the need for a transparent mechanism to evaluate industry proposals on tariff adjustments. Such a data-driven system would ensure that businesses and workers receive necessary support during the transition.
Meanwhile, Sri Lanka’s Minister of Labour and Deputy Minister of Economic Development, Dr. Anil Jayantha Fernando, stated that the government plans to negotiate with US officials before April 9 to seek a reduction in the newly imposed tariffs.
He acknowledged that while Sri Lanka was aware of the potential policy shift, it could not intervene before the US formally enacted the changes.
Dr. Fernando remains optimistic that Sri Lanka could secure a tariff reduction, citing the country’s ongoing collaboration with the International Monetary Fund (IMF) and its economic recovery efforts.
He also noted the possibility of leveraging the GSP+ tariff system as an alternative if negotiations with the US do not yield favorable results. The government is determined to maintain strong trade and investment ties with the US while seeking long-term solutions beneficial to both nations.
April 03, Colombo (LNW): In today’s world, where technology fuels economic advancement, embracing the digital economy is imperative rather than optional. Countries worldwide are leveraging digital innovations to drive growth, improve governance, and generate employment. Sri Lanka, with its strategic location and skilled workforce, is poised to capitalize on this shift. A significant step in this direction is the nation’s goal of establishing a $15 billion digital economy, supported by the creation of a dedicated Ministry of Digital Economy to spearhead the transformation.
The Digital Economy and Its Potential
The digital economy comprises various technology-driven activities, including e-commerce, financial technology (fintech), artificial intelligence (AI), and cloud computing. While it has become a major contributor to GDP in developed countries, for developing nations like Sri Lanka, it presents a transformative opportunity. As the country navigates economic recovery, a thriving digital sector could unlock significant growth, attract investment, and empower its citizens.
Strategic Approach to Digital Transformation
Achieving the ambitious $15 billion digital economy target necessitates a strategic and focused approach. Establishing the Ministry of Digital Economy is crucial for streamlining policies across different sectors and formulating a cohesive strategy. This ministry will enhance coordination among government agencies, private enterprises, and global organizations to ensure impactful digital initiatives.
To facilitate this transition, the Sri Lankan government has committed $10 million (approximately Rs. 3 billion) towards digital transformation efforts in 2025. Key initiatives include implementing a unique digital identification system and establishing new regulatory frameworks for digital services, overseen by a centralized Digital Economic Authority.
A significant focus is the transition towards a cashless economy, emphasizing investments in emerging sectors such as AI, robotics, and fintech. However, balancing innovation with regulatory oversight remains critical in managing risks within the fast-evolving digital landscape.
Fintech’s Expansion and Regulatory Challenges
The rise of fintech has reshaped financial services, offering greater speed, efficiency, and accessibility—qualities particularly valued by younger generations like Gen Z. Fintech companies operate in diverse areas, with some expanding access to traditional financial services, while others introduce entirely new tech-based financial products.
In Sri Lanka, however, certain fintech firms that do not offer traditional banking services operate outside the regulatory purview of the Central Bank of Sri Lanka (CBSL). This lack of oversight creates risks such as financial instability, cybersecurity threats, and market volatility. Additionally, unregulated fintech activities can challenge conventional banking institutions that function under strict CBSL regulations.
Foreign exchange transactions via unregulated fintech platforms pose further concerns, potentially enabling untraceable cross-border financial flows. Ex-Minister Patali Champika Ranawaka has warned about underground financial networks, such as Undiyal and Hawala, which could bypass tax regulations, making enforcement difficult for authorities like the Inland Revenue Department.
The Future of Cryptocurrency in Sri Lanka
Cryptocurrency is gaining global traction, and Sri Lanka is witnessing increasing interest in digital currencies like Bitcoin. There have been proposals to establish a crypto agency in Colombo’s port city, but without a clear regulatory framework, the sector could pose substantial financial risks, similar to past issues in the casino industry.
Many Sri Lankans are already engaged in cryptocurrency trading and mining, generating income in the process. However, Bitcoin mining is an energy-intensive activity, and Sri Lanka currently lacks the necessary infrastructure to support large-scale operations. Even developed countries like the U.S. are planning to expand production to meet future industry demands.
Moving forward, Sri Lanka must develop a comprehensive strategy for cryptocurrency regulation. This should address key concerns, including energy consumption, infrastructure readiness, and financial security. Simply acknowledging the rise of digital currencies is insufficient—establishing well-defined policies and regulations is essential to ensure that technological advancements contribute positively to the country’s economic transformation.
By embracing a robust regulatory framework alongside technological innovation, Sri Lanka can create a secure, inclusive, and thriving digital economy that benefits both businesses and citizens alike.
April 03, Colombo (LNW): Sri Lanka made significant strides in mobilising foreign financing, closely tied to its debt restructuring agreements with international bondholders, lending agencies, and donor countries between 2024 and March 2025. But it is less than the amount mobilised by the treasury in 2023, finance ministry data shows.
Debt restructuring arrangements of Sri Lanka in December 2024 facilitated foreign financing and assisted in economic recovery. However, the continuity of foreign borrowing during this period necessitates careful fiscal management for maintaining long-term debt sustainability and economic stability.
This achievement has provide a five-year grace period from bilateral creditors and extended repayment periods, creating approximately US $5 billion in fiscal space.
While this process resulted in immediate fiscal relief and improved liquidity, continued foreign borrowing during this period had significant effects.
It has helped the government to set apart resources to critical areas such as infrastructure, healthcare, and economic growth initiatives.
These foreign funds contributed to a 5 percent economic growth in 2024 resulting recovery from the 2022 financial crisis, a high official of the ministry disclosed.
From January to October 2024, the Government entered into sixteen agreements with foreign development partners and lending agencies to mobilize foreign financing amounting to $ 955.5 million, of which USD 904.7 million was committed in the form of loans.
Given the prevailing economic situation of the country, 43 percent of the total commitments, i.e $ 408 million has been mobilized for budgetary support purposes, the latest budget, economic and fiscal Position report of the finance ministry revealed.
Out of the total loans, US$ 511.5 million and $ 393 million had been borrowed from the World Bank and the Asian Development Bank (ADB), respectively
Apart from loan agreements, $ 50.8 million was committed through eight grant agreements with the Government of Japan, Government of Australia and the European Union under Official Development Assistance (ODA) in the first ten months of 2024.
Foreign Financing Disbursements and Utilization
Total foreign fund disbursements from January 1 to October 31, 2024 amounted to $1,482.3 million of which $1,458.4 million were disbursed as loans and $23.9 million were disbursed as grants.
ADB accounted for the majority share of disbursements amounting to 37 percent of all the disbursements, followed by loan agreements with WB (33 percent) and IMF (23 percent), respectively.
The majority of disbursements had been to the budget support sector which accounted for 50 percent of the disbursements, water supply and sanitation sector by 8 percent, SME development sector by 7 percent and finance insurance sector by 5 percent.
Sri Lanka entered into several agreements with foreign nations and organizations in 2023 that attracted vast foreign funding.
January 1 to September 30, 2023, witnessed the government inking 13 agreements with foreign lending agencies and development partners and raising around $1,479 million as financing.
Aside from that, during the same period, Sri Lanka also received $114.2 million from the World Bank and $58 million from the Asian Development Bank (ADB).
April 03, Colombo (LNW): The Phase II expansion of Bandaranaike International Airport (BIA) has come under scrutiny due to recent allegations of irregularities in the tender process. Questions have arisen about the fairness and transparency of Sri Lanka’s public procurement system after an unexpected extension was granted for bid submissions, reportedly benefiting a single bidder. This decision has sparked widespread criticism, raising doubts about the integrity of the tendering process.
The BIA expansion is a crucial project aimed at enhancing Sri Lanka’s aviation infrastructure. With the Japan International Cooperation Agency (JICA) investing Rs. 170 billion, the project is set to increase the airport’s annual passenger capacity to 16 million, addressing growing air traffic congestion. Initially launched in 2020 with an estimated cost of Rs. 145 billion, progress was hindered by Sri Lanka’s 2022 economic crisis, leaving only six percent of Phase II incomplete.
As per the original plan, the tender process was to follow the Japanese Official Development Assistance (ODA) guidelines, inviting international bidders. The deadline for bid submission was initially set for March 18, 2025.
However, a last-minute extension was granted upon the request of a single bidder, prompting protests from leading construction firms. Critics argue that this decision disrupts fair competition and compromises the procurement system’s credibility.
Several key concerns have been raised regarding this controversial extension:
Unfair Advantage – The deadline shift benefits a particular bidder, placing others at a disadvantage. Many companies had already allocated resources to meet the original timeline, only to be undermined by this sudden change.
Impact on Foreign Investment – Such discrepancies in the tendering process could tarnish Sri Lanka’s reputation among international investors. A lack of transparency may deter future foreign participation in large-scale infrastructure projects.
Economic and Corruption Risks – Manipulating bid processes may lead to inflated costs and compromised quality. Favoritism in awarding contracts has historically resulted in project delays, cost overruns, and undue financial strain on taxpayers.
Damage to National Interests – A lack of transparency in national projects erodes public trust in governance. This could lead to economic and political instability, affecting Sri Lanka’s global standing.
Precedent for Future Projects – Allowing such extensions could set a negative precedent, signaling that procurement processes can be altered to suit specific interests, thereby undermining fair competition in future tenders.
In response, there have been increasing calls for the government to reinstate the original bid deadline and provide clarity on the extension’s rationale. Citizens and industry leaders are urging authorities to uphold transparency and prevent corruption in public projects.
This issue poses a significant governance challenge for the administration, testing its commitment to accountability. Failure to address these concerns could severely impact Sri Lanka’s development prospects and credibility on the global stage.
April 03, Colombo (LNW): The Department of Examinations has officially announced that the Grade Five Scholarship Examination for 2025 will be held on August 10.
Applications for eligible students will be accepted from April 04 until midnight on April 30.
Commissioner General of Examinations Amith Jayasundara stated that applications must be submitted online and will only be accepted from students currently enrolled in government or government-approved private schools.
According to the department, to qualify for scholarship funds, candidates must be under the age of 11 as of 30 January 2026.
Parents and guardians are encouraged to ensure their children meet the age and eligibility criteria before submitting applications.
The Department of Examinations has also provided detailed guidelines for students with special needs, which can be accessed through their official website. Further information regarding the examination process, eligibility, and special accommodations can be found at https://onlineexams.gov.lk/eic.
For any queries, applicants can reach out through the following contact details:
April 03, Colombo (LNW): Suspended Inspector General of Police (IGP) Deshabandu Tennakoon has been ordered to remain in remand custody until April 10 following a ruling by the Matara Magistrate’s Court.
His continued detention is linked to the high-profile shooting incident that took place near the W15 Hotel in Weligama’s Pelena area on December 31, 2023.
Tennakoon had been evading arrest for nearly three weeks before surrendering to the court on 19 March by filing a motion. His arrest was initially ordered alongside eight other police officers, including former members of the Colombo Crimes Division (CCD), all of whom have been named as suspects in the case.
The Criminal Investigation Department (CID) was subsequently tasked with apprehending and presenting the individuals before the court.
The legal battle intensified when Tennakoon attempted to challenge the arrest order through a writ petition filed at the Court of Appeal. However, on March 17, the court dismissed his request for an interim injunction, paving the way for law enforcement to take him into custody.
The Court of Appeal further directed the CID to expedite his arrest and ensure his court appearance.
Meanwhile, political pressure on Tennakoon is mounting, as a motion submitted by a group of MPs seeking his removal from the position of IGP is set to be debated in Parliament on April 08.
Indian High Commissioner to Sri Lanka Santosh Jha is a seasoned diplomat with experience in several key postings. In this interview, he discusses the significance of PM Narendra Modi’s visit to Sri Lanka and the opportunities and challenges in the India-Sri Lanka partnership. He highlights the importance of fostering a business-friendly, stable investment climate to attract Indian investment and notes that the visit is expected to deliver key outcomes that will elevate the partnership to new heights.
Q: Given the current regional challenges, what is the trajectory of India-Sri Lanka relations?
India-Sri Lanka relations have never been stronger. Rooted in shared aspirations for prosperity, development, and security, our partnership is expanding into new and diverse areas. Sri Lanka remains an integral part of India’s Neighborhood-First Policy and the MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) approach. As a reflection of this commitment, India extended an unconditional financial assistance package of over $ 4 billion—the largest ever deployed in support of any country. With Sri Lanka now on the path to economic recovery, it has a great opportunity to integrate with India’s fast-growing economy, which has doubled in size from $ 2.1 trillion in 2015 to $ 4.3 trillion in 2025. As the fifth-largest economy, soon to be the third-largest, India remains a key partner in Sri Lanka’s resurgence.
Indian High Commissioner to Sri Lanka Santosh Jha
Q: India’s support for Sri Lanka’s economic stabilisation is now widely acknowledged by the public. What Sri Lanka needs now is growth. Could you share insights on the next phase of economic support?
India is Sri Lanka’s largest trade partner, a leading investor, and the biggest source of tourism revenue. The India-Sri Lanka Free Trade Agreement (FTA) has significantly benefited Sri Lanka, with 65% of Sri Lanka’s exports utilising FTA benefits compared to just 5% for India. Sri Lanka has also maintained a trade surplus in FTA-covered goods. However, both nations recognise the need to upgrade the FTA by removing existing impediments, eliminating non-tariff barriers, and enabling greater trade facilitation. India’s development partnership in Sri Lanka includes railway modernisation and port upgrades such as the Kankesanthurai Port, infrastructure projects like housing, schools, and hospitals, renewable energy initiatives such as solar electrification of religious places and hybrid energy projects in Jaffna, and support for agriculture, fisheries, and cold storage facilities. To date, India has extended financial assistance exceeding $ 7 billion, including $ 800 million in grant aid and the conversion of $ 100 million in loans into grants. These projects span all 25 districts in Sri Lanka.
Q: How can India and Sri Lanka further strengthen business and investment flows?
India is already a leading foreign investor in Sri Lanka, and this trend is expected to grow. Major Indian investments include the West Container Terminal at Colombo Port, the ITC Hotel, renewable energy projects, and CEAT’s $ 225 million acquisition of two Michelin plants. Bilateral infrastructure and energy projects are investment-driven, and India continues to encourage private sector investments. A business delegation from the Confederation of Indian Industry (CII) is expected later this year. During President Disanayake’s visit to India in December 2024, he engaged with Indian industry leaders, reinforcing the importance of Sri Lanka’s proximity to India’s economic growth. To capitalise on this, Sri Lanka must ensure a business-friendly, stable investment climate.
Q: Another critical area of concern is maritime security and regional challenges. How are India and Sri Lanka addressing these issues?
Both nations have reaffirmed their shared maritime security interests in the Indian Ocean Region and are committed to strengthening regional security through the Colombo Security Conclave, BIMSTEC, and IORA. This includes joint training, military exercises, and defence collaboration such as the deployment of a Dornier aircraft for maritime surveillance and the establishment of a Maritime Rescue and Coordination Centre in Sri Lanka. Sri Lanka has also made it clear that it will not allow its territory to be used in ways that threaten India’s security or regional stability.
Q: What steps are being taken to strengthen cultural and educational ties between India and Sri Lanka?
The people-to-people ties between India and Sri Lanka span millennia. Recent initiatives to strengthen cultural and educational connections include recognising Pali as a classical language in India, with Sri Lanka being the first to welcome the announcement, translating Jataka Tales into Sinhala and reprinting the Namamala Pali grammar book, and promoting Buddhist circuits and the Ramayana trail, which attract visitors from both countries. Education and youth engagement remain key priorities, with nearly 800 scholarships awarded annually to Sri Lankan students, including 200 new scholarships for students of Jaffna and Eastern Universities, along with expanded skills training and development opportunities for Sri Lankans in Indian institutions.
Q: How do you see the future of the India-Sri Lanka partnership amid the influence of other global players?
The India-Sri Lanka partnership is built on people-centric cooperation, with future collaboration focusing on digital transformation and IT-enabled services, renewable energy and sustainable infrastructure, human resource and skill development, and trade and investment growth to strengthen both economies. These areas will define the partnership’s next decade, ensuring that both nations grow together and remain future-ready.
Q: Lastly, what is the broader significance of Indian PM Narendra Modi’s visit to Sri Lanka?
Indian PM Narendra Modi’s upcoming visit follows President Disanayake’s first official visit to India in December 2024. This visit holds special significance as PM Modi will be the first foreign leader to visit Sri Lanka under the new Government—underscoring the unique and strategic nature of bilateral relations. This will be PM Modi’s fourth visit to Sri Lanka in the last decade, reflecting India’s commitment to supporting Sri Lanka’s economic recovery, deepening cooperation on shared growth and development, and strengthening ties in areas such as investment, connectivity, digitisation, energy, security, and defence. The visit is expected to yield key outcomes that will elevate the India-Sri Lanka partnership to new heights.
April 03, Colombo (LNW): The Criminal Investigation Department (CID) has apprehended three individuals, including two women, for their involvement in a significant financial fraud case at the Sri Lanka Ayurvedic Drugs Corporation.
The suspects are accused of embezzling over Rs. 27 million by manipulating the corporation’s computer software system and issuing altered cheques.
The case was brought to the CID’s attention on March 20, 2025, when the General Manager of the Sri Lanka Ayurvedic Drugs Corporation, located on Old Kottawa Road in Nawinna, Maharagama, filed a formal complaint. The complaint revealed that a total sum of LKR 27,031,024.15 was illegally obtained through fraudulent alterations in the corporation’s software system, which enabled the issuance of tampered cheques.
Following a thorough investigation, CID officers arrested the main suspect, a 35-year-old man from Kelaniya, along with two female accomplices, aged 25 and 32, also residents of Kelaniya. The arrests took place on April 1, 2025.
However,the suspects were presented before the Nugegoda Magistrate’s Court yesterday (April 2) where they were remanded in custody until April 11, 2025. The CID is continuing its investigation to uncover more details about the fraud and to determine whether other individuals are involved in the scheme.
The swift action taken by the CID has been commended, and authorities are urging other institutions to implement stricter security measures to protect against cyber fraud. The investigation remains ongoing as authorities seek to bring all responsible parties to justice.
April 03, Colombo (LNW): Sri Lanka’s currency may experience downward pressure following US President Donald Trump’s recent decision to impose a 44 per cent reciprocal tariff on Sri Lankan imports, according to currency dealers.
The executive order, which Trump characterised as a “discounted reciprocal tax,” aims to counteract what he claims to be an 88% tax burden on American goods entering Sri Lanka.
Trump justified the move as a necessary measure to address trade imbalances. Whilst the decision has sparked concerns within Sri Lanka’s financial sector, local currency dealers suggest the rupee’s immediate depreciation is primarily a reactionary move by certain banks seeking to cover short positions.
“There is currently limited importer demand for US dollars, but uncertainty about future trade relations has created some volatility,” a senior currency dealer noted.
Experts warn that the impact on the rupee could become more pronounced if Sri Lanka fails to negotiate a favourable resolution. Unlike major trading nations such as China and India, the United States maintains a trade surplus with Sri Lanka, meaning a higher tariff could lead to reduced dollar inflows into the country.
This scenario would place further strain on foreign exchange reserves and put the rupee under sustained pressure.
Market analysts are closely monitoring the situation, with many waiting for further clarification from the Trump administration regarding the extent and duration of the tariffs.
In the meantime, financial markets remain on edge as Sri Lanka assesses potential countermeasures to mitigate the economic fallout.
