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GACC Compliance Key to Boosting Sri Lanka’s Agricultural Exports to China

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By: Staff Writer

May 26, Colombo (LNW): Sri Lanka is intensifying efforts to streamline agricultural exports to China, with a renewed focus on meeting stringent Chinese import regulations.

This strategic move comes as China remains a key destination for Sri Lankan produce, particularly in the agricultural sector. In 2024, Sri Lanka exported goods worth $261.06 million to China, with “coffee, tea, maté, and spices” standing out as the leading category among agricultural exports.

To enhance access to this lucrative market, the Sri Lanka Export Development Board (EDB), in collaboration with the National Plant Quarantine Service (NPQS), recently conducted an awareness session on the General Administration of Customs of China (GACC) registration process.

This session followed issues raised by exporters during the 24th Exporters’ Forum, particularly by the Spices and Allied Products Traders’ Association (SAPPTA), regarding challenges in navigating the complex GACC procedures.

GACC registration is a mandatory requirement for a broad spectrum of goods entering the Chinese market—including food, pharmaceuticals, electronics, cosmetics, and most crucially, agricultural products. For Sri Lankan agricultural exporters, compliance hinges on meeting three key criteria: food safety, plant health, and traceability.

The recent session attracted over 100 industry stakeholders, underscoring the export community’s growing interest in strengthening trade ties with China.

It featured detailed presentations from NPQS Additional Director and Head of the National Plant Protection Organization (NPPO) G.G.D. Lalani, and M.F.M. Rizwan, Head of the Plant Quarantine Operations Division. Both experts offered step-by-step guidance on the GACC process, enabling exporters to better understand and implement the necessary compliance measures.

To date, NPQS has successfully facilitated the registration of 188 firms, including the certification of their cultivation sites, signaling notable progress in aligning Sri Lanka’s agricultural practices with Chinese regulatory standards.

This progress is particularly timely, as Sri Lanka seeks to expand exports of high-potential products such as Ceylon cinnamon, fresh pineapples, and seafood—commodities that are gaining traction among Chinese consumers.

While the trade relationship between the two nations shows promise, a significant trade imbalance remains—China exports far more to Sri Lanka than it imports. However, aligning with China’s import protocols through initiatives like the GACC registration process is a critical step in narrowing this gap and positioning Sri Lanka as a trusted supplier of premium agricultural goods.

Through continued education and regulatory compliance, Sri Lanka aims not only to protect its existing export base but also to unlock new market opportunities across China’s vast consumer landscape.

Sri Lanka Tea Exports Hit US $477Mn as April Crop Reaches five-year high

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By: Staff Writer

May 26, Colombo (LNW): Sri Lanka’s tea industry is experiencing a remarkable resurgence in 2025, with both production and export earnings showing significant year-on-year gains.

According to data released by Asia Siyaka Commodities PLC and Forbes & Walker Tea Brokers, tea production in April reached a five-year high of 26.39 million kilograms, marking a sharp 22.96% increase compared to the same month last year.

The surge was driven by notable gains across all three main tea-growing elevations. Low Growns led the growth, rising from 48.5 million kilograms to 51.6 million kilograms.

High Growns also saw strong performance with a 17% year-on-year increase, climbing from 17.3 million kilograms to 20.2 million kilograms. Medium Growns followed with a 15% rise, growing from 14.3 million kilograms to 16.4 million kilograms.

The cumulative tea output for the first four months of 2025 stood at 89.38 million kilograms, up 12.10% or 9.65 million kilograms compared to the same period last year. While this marks a healthy recovery, production still remains below the 2021 January-April figure of 104 million kilograms.

On the export front, the industry also recorded encouraging results. Total export earnings from January to April reached USD 477.88 million, reflecting a 6.15% increase year-on-year. Export volumes rose by 3.44% to 81.41 million kilograms, and the average price per kilogram also climbed by 2.62%, reaching USD 5.87 on a Free on Board (FOB) basis.

April alone generated USD 107.41 million in tea export revenue, up 12.5% from the same month in 2024. Monthly export volumes saw a similar trend, rising by 11.17% to 18.21 million kilograms.

The average export price for April stood at USD 5.90 per kilogram, a 1.20% year-on-year increase. However, market analysts have noted a slight deceleration in month-on-month growth, suggesting cautious optimism as the year progresses.

The international market remains highly responsive to Sri Lankan tea. The top ten export destinations for the first four months of 2025 include Iraq, Libya, Russia, the UAE, Turkey, Iran, Chile, China, Saudi Arabia, and Germany, with Iraq importing the highest volume at 11.53 million kilograms.

According to the Central Bank of Sri Lanka, tea remained the country’s fourth-largest foreign exchange earner in 2024, following worker remittances, textile and garment exports, and tourism. With improved climatic conditions and rising global demand, the tea sector appears poised to remain a key pillar of the national economy in 2025.

Browns Marks 150 Years with Bold Moves in Tea, Sustainability and Port City Ventures

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By: Staff Writer

May 26, Colombo (LNW): Browns, one of Sri Lanka’s most enduring and diversified conglomerates, has marked its 150th anniversary with a renewed commitment to innovation, global leadership, and sustainable development. As the company reflects on a rich legacy dating back to 1875, it also unveiled its latest initiatives aimed at shaping the country’s future and expanding its international presence.

Founded as a mechanical engineering workshop supporting the plantation sector, Brown & Company has grown into a dynamic group active across key industries including agriculture, plantations, automotive, construction, engineering, pharmaceuticals, leisure, manufacturing, and power generation. Today, Browns is a flagship entity within the LOLC Group.

A cornerstone of its recent success is the landmark acquisition of Lipton Teas and Infusions, which has significantly bolstered Browns’ status as the world’s largest tea producer and exporter. With a robust operational base in Sri Lanka and Africa, this acquisition strategically integrates Sri Lanka’s tea heritage with East African cultivation, enhancing both global reach and product diversity.

In the agriculture sector, Browns continues to break new ground. Its Veterinary Pharmaceuticals Division made history in 2022 by becoming the first in Sri Lanka to achieve ISO 14001 certification for environmental management. The division also earned ISO 9001 certification, reinforcing Browns’ reputation for quality and sustainability in agri-based solutions.

Another ambitious initiative reshaping Browns’ future is its role as the largest Sri Lankan investor in the luxury Marina Development at Colombo Port City. This visionary project marks a significant step in transforming the urban landscape and strengthening Sri Lanka’s position as a regional maritime and investment hub.

Chairman Ishara Nanayakkara reflected on the company’s journey: “For 150 years, Brown & Company has played a vital role in Sri Lanka’s growth. From humble beginnings to pioneering global initiatives, our commitment to resilience, innovation, and trust remains unchanged. Today, we are not only celebrating our history—we are actively building the future.”

Sustainability is deeply embedded in Browns’ strategy. From promoting renewable energy and eco-friendly business practices to advocating sustainable agriculture, the company is aligning its long-term growth with environmental and social responsibility.

LOLC Holdings Group Managing Director and Browns Director Kapila Jayawardena added, “Browns has consistently set the benchmark for excellence and innovation. Our current ventures—from global tea leadership to futuristic infrastructure development—demonstrate our readiness to lead in the next era of economic transformation.”

As Browns embarks on its next chapter, it does so with a clear purpose: to honor its legacy while driving progress. With strong leadership, bold investments, and a commitment to uplifting communities, Browns celebrates 150 years not just as a milestone—but as a launchpad for the future.

CEB Proposes 18.3% Tariff Hike despite Sharp Decline in Hydropower Sales.

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By: Staff Writer

May 26, Colombo (LNW): The Ceylon Electricity Board (CEB) has put forward a controversial proposal to increase electricity tariffs by 18.3% for the final seven months of 2025, even as hydropower sales—the country’s cheapest and cleanest energy source—have plunged by a staggering 61% in the first quarter of this year compared to 2024.

This move comes amid rising operational costs and a significant revenue shortfall that has deepened the board’s financial challenges.

Government statistics reveal that hydropower sales dropped from Rs. 1,119,999 million in Q1 2024 to Rs. 434,406 million in Q1 2025, marking a decline of Rs. 685,593 million.

The sharp fall has contributed to mounting losses at the CEB, which now seeks tariff revision approval from the Public Utilities Commission of Sri Lanka (PUCSL) to offset an anticipated Rs. 42.2 billion revenue gap.

According to the ‘Report on Financial Performance of the Government up to 1st Quarter Ending 31 March 2025,’ the total estimated expenditure for CEB and the Lanka Electricity Company (LECO) from June to December 2025 is Rs. 276.5 billion.

This includes Rs. 156.6 billion for energy expenses, Rs. 45 billion for capacity costs, and Rs. 14.1 billion in finance charges. However, projected revenue under the current tariff structure stands at only Rs. 230.7 billion, highlighting the scale of the deficit.

The tariff revision proposal accounts for recent fuel price adjustments, including auto diesel at Rs. 274 per litre, furnace oil at Rs. 167, naphtha at Rs. 131, and coal at Rs. 45.41 per kilogram, as well as an exchange rate of Rs. 303.33 per US Dollar. Finance costs have been updated based on the Average Weighted Prime Lending Rate (AWPLR) of 8.45%, estimating Rs. 14.06 billion in finance expenses.

CEB officials have expressed concern over the PUCSL’s clawback mechanism applied to operational expenditures earlier this year and unresolved issues regarding transmission revenue discrepancies. Revised distribution revenue caps for the second half of 2025 have been set across various distribution licenses (DL1 to DL4), reflecting ongoing regulatory challenges.

To alleviate financial pressures, the government approved several debt management strategies under Sri Lanka’s IMF-supported Extended Fund Facility (EFF) programme in February 2025. Measures include debt swaps, extended repayments, syndicated financing, and restructuring outstanding liabilities.

In response to queries about the sharp reduction in hydropower generation, CEB Spokesman clarified that hydropower output is largely constrained by factors beyond the board’s control.

Water releases at key hydroelectric sites such as Laxapana and Mahaweli are dictated primarily by drinking water requirements, determined through regular coordination meetings involving the CEB, Department of Irrigation, Mahaweli Authority, and the Environment Ministry.

“Power generation is not the priority when it comes to water release,” Wimalaratne emphasized, explaining that environmental and community needs dictate water flows, which in turn limits hydropower capacity.

Seasonal weather variability and extended dry periods further reduce hydro availability, forcing greater reliance on costlier thermal power plants and the Norochcholai coal plant, especially during nighttime when solar power is unavailable.

“If water is not released from Laxapana, downstream areas such as Labukele will face severe impacts,” he added, underscoring the complex balancing act between environmental management and energy production.

New Zealand Deputy Prime Minister reaffirms commitment to stronger Sri Lanka ties during official visit

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May 26, Colombo (LNW): New Zealand’s Deputy Prime Minister Winston Peters, currently on an official visit to Sri Lanka, has welcomed the island nation’s application to join the Regional Comprehensive Economic Partnership (RCEP), a significant move in Sri Lanka’s efforts to deepen its engagement with the wider Asia-Pacific economic framework.

During his visit, Mr Peters met with Sri Lankan Foreign Minister Vijitha Herath, with whom he engaged in wide-ranging discussions encompassing bilateral trade, investment prospects, regional security, and development cooperation. The two leaders underscored the importance of fostering mutually beneficial partnerships, with a particular focus on sectors such as agriculture, tourism, and public health.

The New Zealand delegation, led by Mr Peters—who also serves as Minister of Foreign Affairs—arrived in Sri Lanka on Saturday. The visit aims to build upon the enduring relationship between the two countries, rooted in shared values, regional collaboration, and longstanding development partnerships.

In a formal statement issued during the visit, Mr Peters highlighted the legacy of cooperation between the two nations, particularly in areas of food security, disaster response, and community resilience. He also announced the launch of a new bilateral initiative, the Sustainable Water and Livelihoods project, which is set to enhance both health and income outcomes for farming communities in Sri Lanka.

Mr Peters noted that “increasing engagement by New Zealand enterprises in Sri Lanka reflects a growing confidence in the country’s potential.” He indicated that New Zealand firms are eyeing opportunities across a number of sectors, with new ventures expected to generate tangible benefits for Sri Lankan partners and communities.

The discussions also touched upon institutional cooperation between the two governments, particularly in the areas of food safety, border control, and regulatory frameworks. Peters stressed the value of harmonised standards in facilitating smoother trade and greater market access for Sri Lankan exports.

Acknowledging the broader geopolitical climate, both parties exchanged views on the Indo-Pacific region’s evolving security dynamics. They reaffirmed their commitment to collaboration in immigration, customs, policing, and defence—pillars seen as essential to regional stability.

As part of the visit, New Zealand reaffirmed its educational and professional development support for Sri Lanka. Several short-term trade policy training opportunities will be extended to Sri Lankan officials under the Manaaki New Zealand Scholarship Programme, further deepening institutional linkages.

Mr Peters also made a point to celebrate the cultural and sporting ties between the two nations, praising the camaraderie and competitive spirit shown during a recent visit by New Zealand’s under-85kg men’s rugby team. He expressed hope for more such exchanges on both the rugby and cricket fields, involving men’s and women’s teams alike.

Concluding his remarks, Deputy Prime Minister Peters extended his appreciation to the Sri Lankan government for the warm welcome extended to his delegation, expressing optimism for a strengthened partnership built on mutual respect and shared ambition.

Ex-Minister Mahindananda Aluthgamage released on bail amid fertiliser procurement scandal

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May 26, Colombo (LNW): Former Agriculture Minister Mahindananda Aluthgamage has been granted bail following his recent arrest in connection with a controversial fertiliser procurement deal that took place during a previous government.

The case centres around the importation of an allegedly substandard batch of organic fertiliser from a Chinese supplier in 2021—a transaction that has since drawn scrutiny over its handling and transparency.

The Colombo Chief Magistrate, Thanuja Lakmali, issued the bail order after hearing arguments from both the prosecution and the defence earlier today. The court decided to release Aluthgamage on a cash bail of Rs. 50,000, in addition to five surety bonds valued at Rs. 1 million each. As part of the conditions, two of the guarantors must be close relatives of the accused.

In a move reflecting the gravity of the allegations, the court also imposed a travel ban on the former minister and ordered the surrender of his passport. Furthermore, Aluthgamage has been strictly warned against attempting to contact or influence any witnesses involved in the investigation. He has also been instructed to fully cooperate with the ongoing legal proceedings.

The former minister was brought before the Colombo Magistrate’s Court by prison officials this morning, following his surrender on May 19 in response to an arrest warrant issued earlier that week.

The warrant had been granted upon a request by the Commission to Investigate Allegations of Bribery or Corruption (CIABIC), which is probing suspected irregularities in the fertiliser procurement process during Aluthgamage’s time in office.

His legal team had previously sought anticipatory bail, expressing concern that he could be taken into custody as the corruption inquiry progressed. The court initially remanded him pending further submissions from the Bribery Commission.

Nation Gathers to Bid Farewell to Legendary Actress Malini Fonseka at Independence Square

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May 26, Colombo (LNW): A solemn farewell is underway in Colombo as crowds gather at Independence Square to pay their final respects to one of Sri Lanka’s most beloved cinematic icons, Malini Fonseka, who passed away on May 24 at the age of 78.

The revered actress, known affectionately as the “Queen of Sinhala Cinema,” breathed her last while undergoing medical treatment at a private hospital in the capital. Her passing has sent waves of grief across the country, with fans, colleagues, and dignitaries mourning the loss of a towering figure in Sri Lanka’s cultural and artistic heritage.

Her remains were brought to Independence Square earlier today, where the public has been given an opportunity to pay their respects. The viewing will remain open until 3.00 p.m., after which the final rites are scheduled to begin at 3.30 p.m. A number of political figures, fellow artists, and admirers from all walks of life are expected to be in attendance.

In anticipation of the large turnout, police have implemented temporary traffic restrictions in the vicinity. While full road closures are not in effect, movement along Independence Avenue—from the Independence Roundabout to the Ministry of Public Administration Junction—will be limited for approximately 15 minutes to facilitate the funeral procession. Motorists have been advised to expect delays and use alternative routes, particularly on Independence Avenue and Premakeerthi de Alwis Mawatha, where congestion is likely.

Malini Fonseka leaves behind a legacy that spans decades, having starred in over a hundred films and numerous television dramas. Her artistry earned her acclaim both at home and abroad, and she remained an enduring presence in Sri Lanka’s creative landscape well into her later years.

Tragedy at Wayamba National College of Education sparks national outcry and probe

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May 26, Colombo (LNW): A sombre cloud has settled over the Wayamba National College of Education in Bingiriya following the tragic death of a second-year student, prompting the Ministry of Education to initiate an urgent inquiry into the circumstances surrounding the incident.

The young woman, originally from Teldeniya in the Kandy district, was found deceased in her dormitory in what authorities suspect to be a case of suicide. The incident has stirred shock and grief among the academic community, with questions arising over the pressures faced by students within the institution.

Friends of the deceased have alleged that the emotional burden inflicted by certain lecturers at the college may have been a contributing factor. They claim that persistent harassment left her deeply distressed, ultimately pushing her beyond her limits.

Her family too has expressed similar concerns, suggesting that psychological strain may have played a key role in her untimely death.

In response to a media inquiry, P.V. Lal Kumara, President of the Wayamba National College of Education, confirmed he had been made aware of the Ministry’s decision to launch an official probe into the matter.

In a show of solidarity and concern, fellow students from the college gathered for a silent protest on May 23. The demonstration, which extended well into the night, called for meaningful and immediate action from the institution’s leadership. Protesters held placards and observed moments of silence, demanding structural changes to ensure student welfare is prioritised and such tragedies are not repeated.

Traffic restrictions around Independence Square for state funeral of film legend Malini Fonseka

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May 26, Colombo (LNW): Motorists in Colombo have been advised to expect temporary traffic disruptions today as the final farewell to legendary actress Malini Fonseka takes place at Independence Square.

The funeral, scheduled with full state honours, will be held from 4.00 pm to 6.00 pm and is expected to draw large crowds, including prominent figures from the arts, politics, and public life.

Authorities have announced that whilst roads in the vicinity will not be entirely closed, vehicle access will be intermittently limited to facilitate the ceremonial proceedings. Police have requested the public to cooperate with traffic officers on duty and urged commuters to use alternate routes where possible to avoid delays.

The late Malini Fonseka, a towering figure in Sri Lankan cinema, passed away in Colombo on Saturday at the age of 78. Her contributions to the silver screen, spanning over five decades and more than 150 films, earned her the title “Queen of Sinhala Cinema”—a title bestowed not merely for her prolific body of work, but for the indelible mark she left on the nation’s cultural landscape.

Her body, which lay in state at the National Film Corporation premises on Sunday for public homage, is set to be transported to Independence Square this morning ahead of the funeral. There, under the fading evening light, the nation will bid farewell to an artist whose work touched generations and brought the stories of Sri Lankan society to life.

HRCSL pushes for LGBTQIA+ equality: Time to scrap colonial-era laws

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By: Isuru Parakrama

May 26, Colombo (LNW): In a significant move for LGBTQIA+ rights in Sri Lanka, the Human Rights Commission of Sri Lanka (HRCSL) has issued a renewed and strongly-worded appeal to the Ministry of Justice, urging the government to finally repeal sections 365 and 365A of the Penal Code—outdated provisions that criminalise consensual same-sex relationships.

In a formal letter dated 22 May 2025, addressed to Justice and Nation Integration Minister Harshana Nanayakkara, the HRCSL reiterated its longstanding recommendation to eliminate these discriminatory legal relics. Sections 365 and 365A, dating back to colonial times, classify same-sex relations as “unnatural offences” and “acts of gross indecency,” forming the legal backbone for the ongoing persecution and marginalisation of the LGBTQIA+ community in Sri Lanka.

The Commission’s letter follows earlier communications in November 2023 and August 2024, as well as a landmark Supreme Court determination in 2023 that affirmed the constitutionality of a Private Member’s Bill aimed at decriminalising consensual same-sex activity. The Court stated unequivocally that the “removal of criminalisation of intimate acts between consenting adults… would uphold the dignity of human beings” and align with Article 12(1) of the Constitution, which guarantees equality before the law.

Moreover, the HRCSL welcomed the enactment of the Women Empowerment Act, No. 37 of 2024, which explicitly recognises non-discrimination on the grounds of sexual orientation—a significant legislative first for Sri Lanka. Similarly, the Assistance to and Protection of Victims of Crime and Witnesses Act, No. 10 of 2023, considers sexual orientation a potential factor of vulnerability, further reinforcing the legitimacy of LGBTQIA+ protection within the country’s legal framework.

Despite these progressive legal strides, the HRCSL expressed grave concern over the increasing hostility targeting the LGBTQIA+ community. According to the Commission, recent campaigns featuring physical demonstrations, hate speech, and digital misinformation—falsely claiming that decriminalisation equates to the legalisation of same-sex marriage—have created a climate of fear and intimidation.

These actions, often driven by coordinated and organised groups, contradict Sri Lanka’s constitutional commitments and its international obligations under the International Covenant on Civil and Political Rights (ICCPR).

The ICCPR’s supervising body has already condemned the criminalisation of same-sex relationships in Sri Lanka as a violation of multiple rights, including protection from torture, the right to privacy, and freedom from discrimination. During Sri Lanka’s Third Universal Periodic Review in 2017 and again in 2023, the government pledged to strengthen protections for LGBTQIA+ individuals—a commitment the HRCSL now insists must be honoured through concrete legal reform.

It urges the Ministry of Justice to adopt the Private Member’s Bill as a government-sponsored legislative initiative, expediting its passage through Parliament. Doing so, the HRCSL argues, would not only fulfil Sri Lanka’s international obligations but also send a powerful message of inclusion and respect for diversity.

In the face of mounting challenges, the HRCSL’s emphasised that equality cannot be conditional, and dignity is not negotiable. Decriminalising consensual same-sex relationships is not about extending special rights—it is about affirming basic human rights for all Sri Lankans.