Showers or thundershowers may occur at a few places in Galle, Matara, Kaluthara and Rathnapura districts in the evening or night.
Mainly fair weather will prevail over the other areas of the island.
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, North-western and North-central provinces and in Galle and Matara districts during the morning.
By: Staff Writer
March 04, Colombo (LNW): The government has lifted its long-standing vehicle import ban, setting the stage for potential economic instability within the next year. Experts warn that if pent-up demand from previous years is unleashed too quickly, the crisis could emerge within months.
The primary motive behind lifting the restriction is not merely to meet consumer demand but to generate revenue from import tariffs. This revenue is crucial for financing promised salary hikes, tax reductions, and financial aid for farmers and fishermen.
Following the policy change, the Hambantota International Port (HIP) received its first vehicle shipment on Thursday.
The vessel MV Jupiter Leader, operated by NYK Lanka Ltd., delivered 378 vehicles from Japan, of which 196 were designated for the local market. The consignment included popular models such as Land Cruisers, Hilux cabs, Prado SUVs, Toyota sedans, and Suzuki Alto mini cars. Additionally, the port handled 2,318 vehicles, transshipping 1,940 units to African markets.
The HIP is fully equipped to manage the anticipated surge in vehicle imports. With world-class infrastructure and a skilled workforce, the port has implemented specialized facilities for efficient clearance.
A dedicated customs inspection bay, featuring 24/7 CCTV surveillance and high-intensity lighting, ensures compliance checks. Secure storage facilities have been arranged for vehicles awaiting clearance, including additional temporary storage for new imports.
To facilitate importers and clerks, the port has established designated areas with basic amenities and Vehicle Processing Stations to streamline paperwork.
A newly developed vehicle import yard, with a capacity for approximately 4,000 vehicles, has been introduced to accommodate both local and transshipment units. Access to this yard remains restricted to authorized personnel.
Since 2018, HIP has played a significant role in Sri Lanka’s automotive logistics sector. A $10 million investment in infrastructure upgrades aims to further enhance the port’s ability to handle increased demand. Its strategic location and commitment to efficient operations reinforce its status as a key gateway for vehicle imports.
However, economic analysts express grave concerns over the financial repercussions of lifting the import ban.
The government’s dependency on import tariff revenue to fund essential salary increments and tax reductions poses a serious risk.
If vehicle imports proceed unchecked, the resulting outflow of foreign currency could destabilize the exchange rate, weaken the rupee, and contribute to inflation.
While macroprudential policies like Loan-to-Value (LTV) ratios could be employed to limit excessive imports, such measures would simultaneously reduce tariff revenue.
This places the government in a precarious position: unrestricted vehicle imports could lead to significant rupee depreciation, while restricting imports would create a shortfall in funds needed for approved salary hikes and tax reductions.
If the dollar outflow accelerates, it could deplete foreign exchange reserves, particularly if the central bank intervenes to stabilize the rupee. However, IMF policies discourage direct intervention in the foreign exchange market, advocating for natural exchange rate adjustments. A sharp rupee depreciation would likely lead to inflation, exacerbating the financial burden on consumers. Ultimately, the government faces a challenging dilemma. It must balance the need for tariff revenue with the risk of economic instability. Whether through controlled import measures or alternative revenue streams, a strategic approach is crucial to avoiding a full-blown financial crisis.
By: Staff Writer
March 04, Colombo (LNW): The Sri Lanka Tourism Development Authority is under increasing pressure to take immediate action to resolve the delays in developing Kalpitiya islands as tourist destinations. Agreements with selected investors, most of which expired in September 2024, have not resulted in any tangible outcome, thus prompting calls for decisive government intervention.
The SLTDA initially obtained 2,056.73 acres across 12 islands in Kalpitiya as free grants for tourism development in 2010 and 2012. By 2022, only 668.69 acres in 10 islands had been leased to seven companies.
Although the agreements were signed, none of the investors had begun development activities by the end of the 2022/2023 period, an audit report showed. Further compounding the problem, SLTDA did not collect approximately Rs. 93 million as lease payments from these lessees during the period from 2018 to 2024.
Amongst these, several factors were pointed out for the low achievement of targets, including delays in getting approval for water bungalows, conflicts with local fishing communities, islands being of insufficient size, and the general lack of infrastructure.
While SLTDA signed another four lease agreements in May 2023, those also struggled to progress properly owing to persistent infrastructure and approval delays.
Compounding the problems is that SLTDA has not, as yet, followed the basic infrastructure needs that were put down in the Kalpitiya Master Plan. Facilities such as jetties, water supply systems, centralized power plants, waste treatment facilities, and waterfront amenities are not available.
Such lack of infrastructure has considerably inconvenienced the investors’ operations and retarded the area’s transformation into a tourist destination.
Further, there is an unfinished master plan for the development of Kalpitiya town and two other islands called Palliyawatta and Muthuwal, which consists of 1,915.96 acres. A separate plan has been prepared for eight islands covering 1,845.48 acres, but the execution of the proposals has also stalled.
Audit findings further highlight financial inefficiencies, with funds allocated for the Kalpitiya Island Resort project largely unutilized. During 2020-2022, Rs. 17.6 million was allocated for resort development to increase the region’s hotel capacity. However, no progress was made toward these objectives as of November 2022.
In the light of these setbacks, the audit report calls for attracting capable investors, speeding up the approval processes, and providing the necessary infrastructure to accelerate project development. It further calls for a clearly defined timeline in the master plan itself, so that accountability would ensure progress.
Kalpitiya has great potential to become one of the key tourist destinations; hence, immediate action needs to be taken to revitalize the stalled projects and bring about the economic dividends of this strategic initiative.
By: Staff Writer
March 04, Colombo (LNW): As Sri Lanka moves from economic stabilization to growth following its 2022 crisis, the private sector must enhance resilience through financial discipline and strategic investments, says CBSL Assistant Governor Dr. Chandranath Amarasekara.
While macroeconomic policies ensure stability, businesses must strengthen governance, competitiveness, and efficiency. Economist Talal Rafi emphasized that economic growth depends on government policies, not the IMF, highlighting the need for digitalization and innovation-driven industries.
The private sector bears a crucial responsibility in ensuring long-term economic stability. By fostering sustainable business practices, investing in emerging sectors, and collaborating with policymakers, corporations can drive sustained economic progress, making Sri Lanka’s recovery resilient and inclusive.
As Sri Lanka transitions from economic stabilization to accelerated growth following its 2022 financial crisis, the private sector must play a crucial role in ensuring long-term resilience and sustainable development. While the Central Bank of Sri Lanka (CBSL) has helped restore stability through monetary measures, the next phase of economic growth will depend on structural reforms and private sector-driven initiatives.
CBSL Assistant Governor Dr. Chandranath Amarasekara emphasized the importance of continuing macroeconomic policy reforms to prevent future crises.
He noted that while CBSL has contributed significantly to stabilizing inflation and lowering interest rates, sustainable economic expansion must be driven by productivity, competitiveness, efficiency, and governance.
He urged corporations to build financial buffers, strengthen resilience, and maintain discipline in managing balance sheets to navigate global economic uncertainties.
Following the economic downturn, CBSL has successfully reduced interest rates, with treasury bill rates for 91-day securities declining from 33% to 5%, and the prime lending rate dropping from over 30% to 8.4%.
These improvements create a favorable business environment, but the private sector must leverage these conditions to drive growth.
Economist and Ernst & Young (EY) Sri Lanka Director Talal Rafi reinforced the necessity of a robust private sector, clarifying that institutions like the International Monetary Fund (IMF) serve primarily to stabilize economies in distress rather than directly fuel growth. He compared the IMF’s role to an Intensive Care Unit (ICU) in a hospital, which stabilizes critical patients but does not ensure long-term health.
Rafi emphasized that domestic growth must take precedence, alongside external trade expansion. He advocated for increased investments in digitalization and high-potential industries to secure long-term economic prospects.
With Sri Lanka targeting $19 billion in export revenue by 2025, he stressed the importance of shifting from traditional economic models toward innovation-driven industries. This transformation requires collaboration between the private sector and academia to foster research and development.
Additionally, Sri Lanka’s low GDP-to-revenue ratio, projected to struggle even at 15%, calls for progressive taxation policies rather than temporary revenue measures like vehicle taxes. Long-term fiscal stability will depend on sound economic policies that support private sector-led growth.
As the country moves forward, a strong, innovative, and resilient private sector will be the key driver of economic expansion, complementing government policies and ensuring sustainable development.
By: Staff Writer
March 04, Colombo (LNW): Sri Lanka’s new administration, led by President Anura Kumara Dissanayake, has adopted a different strategy for restructuring state-owned enterprises (SOEs) under the International Monetary Fund’s (IMF) bailout program.
This approach deviates from the commitments made by the previous government, according to Labour Minister and Deputy Economic Development Minister Anil Jayantha.
While the ruling National People’s Power (NPP) party strongly opposed the previous government’s IMF agreements during its election campaign, it did not pledge to terminate the program upon assuming office.
The IMF recently released the fourth tranche of its $3 billion bailout package, which is contingent on implementing structural reforms, including SOE restructuring. The previous government had begun privatizing certain SOEs despite trade union protests.
Minister Jayantha, speaking to the media following the IMF’s latest disbursement, stated that a newly appointed committee is evaluating all SOEs to determine the best strategy for managing them efficiently while minimizing the financial strain on the treasury.
He emphasized the administration’s goal of ensuring that state institutions contribute to market stability, prevent monopolies, and provide goods and services at affordable prices while improving quality.
SOEs and the IMF Bailout
SOEs have been central to Sri Lanka’s economic restructuring efforts under the IMF’s bailout program. In March 2023, the IMF approved a $3 billion, 48-month Extended Fund Facility (EFF) to help the country regain macroeconomic stability following its financial crisis.
A major component of this program involves reforming SOEs to enhance efficiency and reduce their financial burden on the state.
Historically, SOEs have been a significant contributor to fiscal deficits, necessitating urgent reforms to align with the IMF’s conditions. The government has since taken steps to improve governance, enhance transparency, and introduce cost-recovery pricing mechanisms, particularly in sectors like energy.
IMF’s Role in Restructuring
Minister Jayantha clarified that the IMF has not imposed or forced specific actions on Sri Lanka but has emphasized the importance of reducing the financial strain caused by inefficient SOEs. He dismissed claims that the IMF demanded privatization, explaining that the organization seeks a disciplined restructuring approach rather than outright sales.
The restructuring process includes revising pricing structures to reflect market realities and cutting subsidies that have historically led to inefficiencies and financial losses. These measures are designed to alleviate the burden SOEs place on the national budget.
Economic Implications
Last week, the IMF completed the third review under the EFF arrangement, allowing Sri Lanka to access the fourth tranche of approximately $334 million, bringing the total disbursement to $1.34 billion. The IMF acknowledged strong progress in the reform program, with most targets and benchmarks being met, including those related to SOEs.
Additionally, the IMF urged Sri Lanka to restore cost-reflective electricity pricing to mitigate fiscal risks associated with SOEs. The government’s restructuring initiatives are expected to help reduce fiscal deficits, enhance public sector efficiency, and contribute to long-term economic recovery.
March 04, Colombo (LNW): The individual apprehended in connection with the recent murder of notorious underworld figure “Ganemulla Sanjeewa” has now been identified as the shooter involved in a separate gun attack in Kandana last December.
The suspect, Samindu Dilshan Piyumanga Kandanaarachchi, is believed to have fired on a house in Kandana on 13 December 2024 before fleeing the scene, according to Police.
Investigations into the shooting have uncovered that it was part of a larger organised criminal operation, with links to individuals living abroad.
The information came to light after a detailed interrogation of the 27-year-old suspect, who has been held under a 90-day detention order by the Colombo Crimes Division (CCD).
During questioning, it emerged that Kandanaarachchi had assumed the role of a lawyer in February 2025 to gain access to a Colombo courthouse, where he shot and killed Sanjeewa in a highly targeted attack.
March 04, Colombo (LNW): Air Vice Marshal Lasitha Sumanaweera has been officially appointed as the new Chief of Staff of the Sri Lanka Air Force (SLAF), a decision approved by President Anura Kumara Dissanayake in his capacity as the Commander-in-Chief of the Armed Forces.
The formal announcement was made today, March 04, 2025, when Air Marshal Bandu Edirisinghe, the Commander of the Air Force, presented the letter of appointment to Air Vice Marshal Sumanaweera.
Sumanaweera, an experienced and distinguished officer, will now take on the critical responsibility of overseeing the strategic development and operational efficiency of the Air Force.
March 04, Colombo (LNW): Peter Breuer, the Senior Mission Chief for Sri Lanka at the International Monetary Fund (IMF), has praised the nation’s remarkable economic recovery in recent years, emphasising that as economic opportunities continue to expand, both income levels and living standards will rise, making it more appealing for people to stay in Sri Lanka rather than emigrate.
Breuer was speaking at a press conference following the completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) programme.
He noted that the country’s reserves have significantly improved under the EFF, reaching nearly half of the set programme targets—a performance Breuer described as “impressive.”
Reflecting on Sri Lanka’s transformation, Breuer highlighted the striking contrast between the country’s current economic outlook and the dire situation he witnessed when he first arrived in Sri Lanka in June 2022.
At that time, the country was grappling with severe shortages of essential goods, with long queues for fuel, cooking gas, food, and medicine. Economic activity had all but come to a standstill, with the nation experiencing a substantial contraction in its economy, losing about 10 per cent of its activity due to the crisis.
However, in a remarkably short period since the implementation of the IMF-backed programme in 2023, Sri Lanka has recovered approximately 40 per cent of the economic activity it lost in the previous five years. Breuer noted that the most recent growth figure of 5.5 per cent further underscored the nation’s significant rebound.
“It’s clear that Sri Lanka has made tremendous strides in a short period, and this recovery will positively impact crucial factors like poverty reduction,” he said.
Breuer also pointed out that as Sri Lanka continues to bounce back, it will not only boost incomes but also create more opportunities for its citizens.
“As the economy stabilises and growth accelerates, people will be more likely to stay in Sri Lanka, finding new prospects within the country rather than seeking opportunities abroad. Those who have emigrated will also be drawn back by the renewed economic potential,” he concluded.
March 04, Colombo (LNW): The ongoing debate on the third reading of the Appropriation Bill, commonly referred to as the Committee Stage debate, continues for the fourth consecutive day today (04).
As Parliament continues to scrutinise the bill, lawmakers will focus on the expenditure allocations for the Ministry of Public Administration, Provincial Councils and Local Government, as well as the Ministry of Labour.
The Committee Stage debate, which commenced on February 27, is scheduled to run for a total of 19 days, spanning across weekdays and four Saturdays, with the final session taking place on March 21.
During this period, MPs will deliberate on the various spending proposals outlined in the bill, discussing the financial allocations for each government ministry and state institution.
The debate will culminate in a vote on the third reading of the Appropriation Bill, which is set for 21 March at 6.00 PM.
The bill, once passed, will outline the government’s financial plan for the upcoming fiscal year, determining how funds will be allocated across various sectors, including public administration, local governance, and labour.
March 04, Colombo (LNW): The government has assured the public that there will be an uninterrupted supply of essential food items during the upcoming Sinhala and Tamil New Year season, with measures in place to ensure both availability and affordability.
This assurance was given following a key meeting convened by the President’s Media Division (PMD) on 3 March 2025, where relevant ministers and members of the Food Policy and Security Committee met to discuss strategies for maintaining food security throughout the festive period.
According to the PMD, the meeting was focused on ensuring that essential food items are available at reasonable prices during the peak festive season, a time when demand typically surges.
Participants discussed ways to provide these goods to the public without disruptions, and efforts were made to guarantee that stocks are maintained at sufficient levels to avoid any shortages.
Further deliberations during the meeting also centred on implementing additional measures to protect food security within the country. The government stressed the importance of ensuring that all steps taken during this period would not only secure supply but also protect the interests of consumers, local farmers, and food producers.
This holistic approach aims to balance demand with local production capacity and safeguard the entire supply chain.
In addition to the ongoing food security discussions, the meeting also addressed the issue of importing maize for animal feed production, with approval anticipated for shipments of this essential raw material after April 01, 2025.
This decision is expected to help support the agricultural sector and maintain stability in food prices for animal products during the festive season and beyond.