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US Says Sri Lanka Free to Decide Fate of Iranian Sailors and Warships

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By: Isuru Parakrama

March 08, Colombo (LNW): The United States has stated that Sri Lanka retains full authority to determine how it handles the situation involving the Iranian naval vessel IRIS Bushehr and its crew, emphasising that the matter falls under Colombo’s sovereign jurisdiction.

A spokesperson for the US State Department said Washington recognises Sri Lanka’s right to make its own decisions regarding the vessel, its personnel and the Iranian sailors rescued following the recent maritime incident. The official noted that any action taken would be guided by Sri Lanka’s domestic legislation as well as its obligations under international law.

The comments come amid heightened diplomatic attention following the sinking of the Iranian frigate IRIS Dena earlier this week off Sri Lanka’s southern coastline. Sri Lanka’s Foreign Minister Vijitha Herath, speaking at an international forum in New Delhi, confirmed that 32 Iranian sailors rescued from the vessel were being cared for in Sri Lanka under international humanitarian and maritime conventions.

Sri Lanka’s Navy launched rescue operations shortly after the incident and recovered both survivors and the remains of sailors who perished when the vessel went down. Authorities reported that dozens of bodies had been retrieved from the sea during the search and recovery mission.

The government also granted temporary refuge to another Iranian naval vessel, IRIS Bushehr, which arrived with mechanical difficulties shortly after the attack. The ship was escorted to the port of Trincomalee, where its 219 crew members were safely disembarked.

Reports published by international media outlets suggested that the United States had privately urged Sri Lanka not to send the Iranian sailors back to Iran. When asked about those claims, the State Department spokesperson reiterated that the final decision on the matter rested entirely with Sri Lanka.

“We respect Sri Lanka’s sovereignty and its responsibility to manage this situation,” the spokesperson said, indicating that Washington recognised Colombo’s role in applying international maritime and humanitarian law.

Meanwhile, developments in the region have involved other Iranian vessels that were present in South Asia for a multinational naval event hosted by India before the escalation of tensions in the Middle East. Indian authorities confirmed that another Iranian ship, IRIS Lavan, was allowed to dock at the port of Kochi after experiencing technical problems during its voyage.

India’s External Affairs Minister Subrahmanyam Jaishankar said the decision was taken on humanitarian grounds, noting that many of those on board were young naval trainees who required assistance after the vessel sought refuge.

Sri Lankan President Anura Kumara Dissanayake earlier indicated that Colombo intends to adhere to international conventions governing neutral states during armed conflicts. Under such frameworks, combatants from countries engaged in hostilities may be required to remain in a neutral state until the conflict concludes.

Government officials also said discussions are underway with the International Committee of the Red Cross regarding the treatment of survivors and the handling of those injured in the incident. According to officials, wounded sailors could be repatriated if they request it under applicable humanitarian provisions.

Iranian diplomats in Colombo have meanwhile requested that the remains of sailors killed in the attack be returned to Iran for burial. Authorities are currently considering the request in line with established diplomatic and humanitarian procedures.

Unusually Warm Conditions Expected to Persist Across Sri Lanka Until May

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March 08, Colombo (LNW): The Department of Meteorology has warned that the prevailing spell of unusually hot weather affecting several parts of Sri Lanka is expected to continue for the next few months, with elevated temperatures likely to persist until around May.

Meteorologists say the current conditions are being driven by seasonal atmospheric patterns that typically bring warmer and more humid weather to the island during this period of the year.

According to the department, the “heat index” — which indicates how hot the weather feels to the human body when humidity is taken into account — is forecast to remain at a cautionary level in a number of areas today. Among the districts expected to experience noticeable heat stress are Colombo and Gampaha, where residents may feel temperatures higher than the actual recorded values.

Similar conditions are predicted in several other parts of the country, including the Sabaragamuwa, North Western and North Central provinces. Districts such as Vavuniya, Mannar, Hambantota and Monaragala are also likely to experience elevated daytime temperatures.

Weather officials have advised the public to take precautions during the hotter parts of the day, including staying well hydrated, avoiding prolonged exposure to direct sunlight and reducing strenuous outdoor activities where possible. Authorities have also encouraged employers and outdoor workers to remain mindful of the health risks associated with heat stress during this period.

Four Injured Sri Lankans in Middle East Attacks Recover and Leave Hospital

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March 08, Colombo (LNW): Deputy Foreign Minister Arun Hemachandra has confirmed that four Sri Lankan nationals injured during recent attacks in the Middle East have now been discharged from hospital after receiving medical treatment.

In a statement, Hemachandra said he had personally spoken by telephone with three of the affected individuals, who assured him that they were recovering steadily and were now out of immediate danger. He noted that their condition had improved significantly since the incident.

Although officials were temporarily unable to reach the fourth Sri Lankan directly due to communication difficulties, the Deputy Minister said authorities had received confirmation through other channels that the individual had also been released from hospital and was safe.

Hemachandra emphasised that the protection and welfare of Sri Lankan citizens living and working abroad remain a key concern for the Government. He added that Sri Lanka’s diplomatic missions in the Middle East are continuing to maintain close contact with local authorities and members of the Sri Lankan community to monitor developments.

He also urged calm as tensions persist in parts of the region, expressing hope that all parties involved would exercise restraint and work towards a peaceful outcome that ensures the safety of civilians.

US Indo-Pacific Command Defends Strike on Iranian Warship Near Sri Lankan Waters

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By: Isuru Parakrama

March 08, Colombo (LNW): The United States Indo-Pacific Command (INDOPACOM) has dismissed Iran’s claim that its naval vessel IRIS Dena was unarmed at the time it was destroyed in an attack near Sri Lankan waters, asserting that the ship constituted a legitimate military target under international rules governing armed conflict.

In a statement shared on the social media platform X, the command rejected Tehran’s account of events and described the claim that the frigate was operating without weapons as inaccurate. According to INDOPACOM, the action was carried out in accordance with the Law of Armed Conflict, which allows the use of force against recognised military assets during hostilities.

The command also acknowledged that Sri Lanka played a role in the aftermath of the incident by providing humanitarian assistance to survivors, noting that such efforts were consistent with international legal obligations to aid those in distress at sea.

Iran has strongly protested the strike, maintaining that the vessel was not engaged in combat operations at the time. Iranian officials insist the ship had been sailing home after participating in the MILAN multinational naval exercise organised by India and therefore should not have been targeted.

Speaking during a visit to India, Iran’s Deputy Foreign Minister Saeed Khatibzadeh criticised the attack and described it as a grave breach of international law. He said the frigate had been travelling back to Iran after completing its participation in the naval exercise.

Reports indicate that the vessel sank while navigating waters in the broader Indian Ocean region not far from Sri Lanka’s southern coast. The incident is believed to have resulted in significant casualties, with dozens of Iranian naval personnel feared dead.

Sri Lankan naval units responded to distress signals from the damaged ship and launched a rescue effort approximately 40 nautical miles off Galle. Several survivors were brought ashore, while 32 injured sailors were transferred to Karapitiya Teaching Hospital for medical treatment.

Initial reports suggest that roughly 180 crew members had been on board the Iranian frigate at the time of the attack. Authorities in Sri Lanka said search, rescue and medical support operations were carried out as part of emergency humanitarian assistance following the sinking.

Global Energy Supply Pressures Driving Price Increases: Trade Minister

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March 08, Colombo (LNW): Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe has warned that rising global prices for essential commodities are largely outside Sri Lanka’s control, noting that disruptions in the supply of fuel and gas are likely to push costs even higher in the coming months.

Addressing a briefing, the Minister explained that fluctuations in international markets are already being felt across many countries, and Sri Lanka will not be immune to those developments. According to him, increases in global energy prices tend to trigger wider price adjustments that affect multiple sectors of the economy.

Samarasinghe pointed out that the current tensions and instability in the Middle East are having a widespread impact on global trade and logistics. As a region closely linked to the world’s major energy supplies and shipping corridors, developments there can significantly influence fuel availability and transportation costs worldwide.

He noted that countries heavily dependent on maritime trade routes, including Sri Lanka, are particularly vulnerable to such disruptions. Any reduction in the supply of fuel or liquefied gas, he said, would naturally lead to price escalation in international markets.

The Minister added that global price movements have already begun to reflect these pressures, and nations that rely on imported energy and goods will inevitably feel the consequences. While governments can attempt to manage the local impact, he stressed that the underlying drivers of such price increases originate in global supply conditions that no single country can control.

Samarasinghe also indicated that the Government is closely monitoring the situation and assessing its potential effects on the domestic market, especially in sectors linked to energy, food supply and transportation.

Prime Minister Calls for Stronger Action to Advance Women’s Rights and Opportunities

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March 08, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has conveyed her wishes to women in Sri Lanka and across the world in a message marking International Women’s Day, while urging greater efforts to ensure equality, justice and opportunity for women and girls everywhere.

Referring to this year’s United Nations theme, “Rights. Justice. Action. For All Women and Girls,” the Prime Minister said the observance serves as an important reminder of the need to translate commitments to women’s empowerment into practical measures that protect rights and expand opportunities.

Dr Amarasuriya noted that women remain central to the social and economic fabric of Sri Lanka, describing them as a driving force behind both family life and national progress. She said the Government’s policy agenda, titled “A Thriving Nation – A Beautiful Life,” aims to move beyond viewing women solely as recipients of assistance and instead recognise them as equal partners in shaping the country’s development.

Under this framework, a number of initiatives are being pursued to strengthen women’s economic and social participation. These include encouraging women-led enterprises, providing technical guidance and financial backing for those pursuing self-employment, and improving protections for women in public spaces, workplaces and public transport systems.

The Prime Minister also highlighted efforts to increase the presence of women in leadership and decision-making positions at both national and local levels. In addition, she said programmes focusing on women’s health and well-being — including nutrition, reproductive healthcare and mental health support — are being expanded.

Emphasising the broader role women play in society, Dr Amarasuriya said women should not be viewed through a lens of vulnerability but rather recognised as capable and dynamic contributors equipped with knowledge, determination and creativity.

She expressed hope that Sri Lanka can build a future where women are able to live safely, have their abilities acknowledged and pursue their ambitions with dignity.

Concluding her message, the Prime Minister said she hopes International Women’s Day 2026 will symbolise a fresh chapter for women in Sri Lanka — one in which their aspirations are fulfilled and their achievements gain recognition both at home and internationally.

President Calls for Greater Recognition of Women’s Role in National Development on International Women’s Day

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March 08, Colombo (LNW): Marking International Women’s Day, President Anura Kumara Dissanayake underscored the crucial role women continue to play in shaping Sri Lanka’s economic, political, social and cultural progress, stressing that their contributions should be valued throughout the year rather than recognised on a single occasion.

In a message issued to coincide with the global observance on March 08, the President noted that the day offers an opportunity to reflect on the rights, freedoms and security of women while also acknowledging the responsibilities they shoulder in various sectors of national life.

Highlighting the demographic reality that women account for approximately 52 per cent of Sri Lanka’s population, he said their impact on the national economy remains substantial. Beyond their often unrecognised role within households, women serve as a backbone of key industries including garment manufacturing, plantations, overseas employment, healthcare, education and the broader services sector.

The President also expressed appreciation for the perseverance and commitment demonstrated by Sri Lankan women, pointing out that their efforts were instrumental in supporting the country’s economic recovery and progress during 2025.

He further stated that the Government is continuing efforts to advance gender equality and safeguard women’s rights, while addressing persistent issues such as violence, discrimination and unequal opportunities in workplaces, communities and public spaces.

Referring to recent political developments, the President observed that the current Parliament includes the largest number of female representatives in Sri Lanka’s history. He also described the election of the first female Member of Parliament from the Malayagam community as a landmark moment for representation and inclusion.

Looking ahead, President Dissanayake emphasised the importance of expanding opportunities for women in emerging sectors, particularly through entrepreneurship linked to the digital and green economies. Encouraging women to take on leadership roles in the country’s evolving economic landscape, he said empowering women would be vital to Sri Lanka’s long-term development.

Commending this year’s International Women’s Day theme, “In a Thriving Nation – She Leads with Determination”, the President called on women across the country to actively participate in building a more progressive, equitable and forward-looking society.

Full Statement:

‘‘International Women’s Day has been celebrated annually across the world on 8 March for over a century. In Sri Lanka, the role of women in the economic, political, social and cultural spheres is distinctive and significant. While this day serves to recognise and appreciate the immense responsibilities borne by women across all these sectors, and to reflect in particular on women’s rights, freedom and security, I believe that such recognition cannot be confined to a single day.

It is no secret that women, who represent 52 per cent of our country’s population, play a substantial role in the national economy. In addition to their unpaid contribution as homemakers, women make a considerable contribution to the garment industry, the plantation sector, foreign employment, as well as to the health, education and service sectors. I wish to acknowledge with gratitude the strength and commitment demonstrated by women, which contributed significantly to the many economic achievements our country attained in 2025.

In pursuit of social justice, we are already implementing plans to ensure gender equality and to enable women to participate more actively and productively in the economic process. As a Government, we have prioritised the structural changes necessary to secure and promote women’s rights and to act against all forms of violence and discrimination faced by women, at home, in public transport, within communities, in the workplace and on the political stage, while striving to realise the aspirations of a just society, a free nation and a liberated woman.

Marking a new chapter in parliamentary history, this Parliament includes the highest number of female Members of Parliament to date. Furthermore, for the first time in Sri Lanka’s history, a female Member of Parliament representing the Malayagam community has been elected, an important and historic milestone. I wish to emphasise that it is both our responsibility and our resolve to nurture a strong and dignified generation of women who will stand shoulder to shoulder in advancing the programme of economic, political and social transformation we have initiated. Expanding women’s entrepreneurship within a digital and green economy, and fostering women entrepreneurs capable of adapting to the country’s forthcoming economic transformation, remains a key objective of our Government.

In this context, I greatly appreciate the organisation of this year’s Women’s Day under the theme, ‘In a Thriving Nation – She Leads with Determination’, which proudly showcases the strength and dignity of Sri Lankan women to the world.

As we move forward with firm determination to free our society and nation from all adverse challenges, and to build a progressive country and a future generation grounded in ethics and compassion, I extend my warm wishes for a meaningful International Women’s Day and invite all women to join hands as strong partners and pioneers in this journey.”

Mainly dry weather to prevail over the Island (Mar 08)

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March 08, Colombo (LNW): Except for showers or thundershowers that may occur at a few places in Southern province and Rathnapura district after 2.00 pm, mainly dry weather will prevail over the other areas of the island, the Department of Meteorology said in its daily weather forecast today (08).

Misty conditions can be expected at some places in Northern, North-central, Central, Sabaragamuwa, Southern, Uva and North-western provinces during the early hours of the morning.


Marine Weather:

Condition of Rain:
Mainly fair weather will prevail over the sea areas around the island.

Winds:
Winds will be variable in direction and wind speed will be (20-30) kmph.

State of Sea:
Sea areas around the island will be slight.

Crisis or Catalyst? Gulf War May Rewire Sri Lanka’s Economy

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Escalating conflict involving Iran in March 2026 has triggered global economic tremors, sending oil prices higher and disrupting major shipping routes. For import-dependent economies like Sri Lanka, the immediate risks appear clear: rising energy costs, inflationary pressure and trade uncertainty. Yet economists argue that the same geopolitical disruption could open unexpected opportunities for the island if policymakers move quickly.

According to analysis by First Capital Research, the early economic shock has largely emerged through higher logistics costs. Tensions across Gulf maritime corridors and airspace closures have increased freight charges and insurance premiums for cargo shipments. These changes have pushed up the landed cost of imports ranging from fuel to consumer goods.

Energy markets have reacted sharply. Global benchmark Brent Crude has climbed roughly 6–10 percent since the late-February escalation. Some forecasts suggest oil prices could surge to between $95 and $110 per barrel if disruptions intensify near the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.

Higher fuel costs would normally spell trouble for Sri Lanka’s fragile economic recovery. Transport, electricity and manufacturing costs could rise, complicating policy decisions by the Central Bank of Sri Lanka as it attempts to maintain price stability while supporting growth.

However, geopolitical shocks often reshape trade routes and labour markets in ways that create new economic openings.

One emerging opportunity lies in global shipping patterns. Security concerns around the Bab-el-Mandeb Strait and other Middle Eastern maritime corridors are already forcing some vessels to divert longer routes around Africa’s Cape of Good Hope. This shift increases traffic across the Indian Ocean shipping lanes—an area where Sri Lanka sits strategically.

If these diversions persist, the Port of Colombo could strengthen its position as a mid-ocean transshipment hub. Additional vessel calls would boost demand for port services, bunkering operations and maritime logistics, potentially increasing foreign exchange earnings from shipping-related industries.

Labour markets in the Gulf may also shift in ways favourable to Sri Lankan workers. While conflict often disrupts employment, past geopolitical crises have triggered massive reconstruction and infrastructure spending in oil-rich states.

Economists point to the post-2003 construction boom across Dubai, Qatar, and Abu Dhabi, which generated strong demand for migrant labour. A similar surge could benefit Sri Lanka’s overseas workforce if energy revenues remain high and regional governments accelerate development projects.

 Remittancesalready one of Sri Lanka’s largest foreign exchange sources could therefore remain resilient or even rise in certain scenarios.

Financial markets, however, remain sensitive to global uncertainty. Safe-haven demand has strengthened the US dollar, pushing the US Dollar Index close to 99. Meanwhile, equities at the Colombo Stock Exchange have experienced volatility following the crisis.

Still, analysts argue that geopolitical upheaval often creates winners as well as losers. If Sri Lanka leverages its geographic location, maritime infrastructure and overseas workforce effectively, the Gulf conflict could accelerate structural shifts that strengthen the country’s role in regional trade and logistics.

The challenge lies not simply in weathering the crisis but in turning disruption into economic opportunity.

Tax Boom or Temporary Relief? Sri Lanka’s Fragile Recovery

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Sri Lanka’s 2025 fiscal performance has surprised many analysts, with government accounts showing a dramatic turnaround after years of deficits and economic turmoil. However behind the impressive numbers lies an uncomfortable question: is the recovery sustainable, particularly if global tensions such as a potential Gulf war trigger another economic shock?

Data analysed by JB Securities using figures from the Central Bank of Sri Lanka reveal that the Government achieved a primary surplus of Rs. 1,776.3 billion in 2025. That figure is not only nearly three times the surplus recorded in 2024 but also more than double the target set in the national budget.

The improvement was largely driven by a sharp increase in government revenue. Total revenue and grants climbed to Rs. 5,540.7 billion, exceeding budget expectations and marking a 35 percent increase from the previous year.

Tax income accounted for most of the surge. Collections reached Rs. 5,049.5 billion—about 110 percent of the government’s target for the year. This reflects sweeping fiscal adjustments introduced after the economic crisis, including higher tax rates, expanded tax bases, and stronger enforcement measures.

However, some economists warn that the heavy reliance on taxation raises concerns about long-term growth. Higher taxes have strengthened government finances, but they also risk slowing consumer spending and business investment at a time when the economy is still recovering.

Spending patterns in 2025 also reveal a careful balancing act. Recurrent expenditure fell slightly compared with 2024, suggesting tighter control over salaries, subsidies, and administrative costs. But capital spending increased significantly, rising 26.7 percent to Rs. 1,001.9 billion.

Much of this investment went into infrastructure, development projects, and financial transfers to provincial councils. The increase suggests the government is attempting to stimulate economic activity while maintaining fiscal discipline.

Despite these improvements, Sri Lanka’s debt burden remains substantial. Interest payments alone amounted to Rs. 2,950 billion in 2025 one of the largest components of government spending.

Meanwhile, fiscal pressures resurfaced toward the end of the year. In December, capital spending surged by more than 90 percent compared with the previous year, pushing total expenditure higher and resulting in a monthly primary deficit of Rs. 165.5 billion.

The broader deficit for December reached Rs. 398.8 billion, though still about half the level recorded a year earlier.

The real test for Sri Lanka’s fiscal recovery may come from outside its borders. Rising geopolitical tensions in the Middle East could disrupt global energy markets and drive up oil prices an especially serious risk for a country that imports nearly all its fuel.

Higher energy costs would ripple through the economy, increasing import bills, inflation, and government spending on subsidies.

In that context, Sri Lanka’s fiscal success in 2025 may represent a crucial milestone—but not yet a guarantee of lasting economic stability.