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Sri Lanka’s Economy Turns around completely with Industrial and Services growth 

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By: Staff Writer

March 20, Colombo (LNW): Sri Lanka’s economy made a significant recovery in 2024, posting a 5% growth, reversing the 2.3% contraction seen in 2023. This turnaround was driven by strong performances in the industrial and services sectors, which grew by 11% and 2.4%, respectively, compared to previous declines in 2023. The agriculture sector grew by a modest 1.2%, a slowdown from the 2.6% growth in 2023.

The breakdown of GDP contributions at current prices showed the services sector leading with 57.5%, followed by industry at 25.5%, and agriculture at 8.3%. Additionally, taxes less subsidies contributed 8.7%. In the fourth quarter of 2024, the economy grew by 5.4%, outperforming the 4.3% growth of the same quarter in 2023, with industrial activities growing by 13.1% and services by 2.5%. However, agriculture faced challenges, posting a 2.2% decline in the same period.

This positive growth follows two consecutive years of economic decline in 2022 and 2023, signaling a path toward a more optimistic economic outlook. The growth was supported by higher export and import volumes, increased port activities, and greater vehicle registrations, especially for freight and agricultural vehicles. A stabilizing Sri Lankan rupee and declining inflation further contributed to this improved economic environment. Private sector credit and liquidity also increased due to lower interest rates.

The recovery was notably driven by key sectors like manufacturing, construction, trade, and transport, which experienced expansions. Notably, industrial activities grew by 11%, recovering from a 9.2% decline in 2023. Sub-sectors like construction and mining saw robust growth of 19.4%. Manufacturing also reported positive results, with notable increases in basic metal products, textiles, furniture, chemicals, and food processing, among others.

Services also contributed to the recovery, with a 2.4% growth compared to a slight decline in 2023. Key drivers included accommodation, food services, and postal services, while sectors like insurance, public administration, and health care showed declines.

Agricultural activities grew by just 1.2%, down from 1.6% in 2023. Some segments within agriculture, like animal production and cereal growing, reported strong growth, while others, including plant propagation and growing of coconuts, experienced significant declines.

Overall, the economy of Sri Lanka in 2024 showed resilience and positive momentum across various sectors, offering hope for sustained growth in the coming years.

EU Delegation to Assess GSP plus Compliance amid Trade Uncertainty in Sri Lanka

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By: Staff Writer

March 20, Colombo (LNW): Sri Lanka currently benefits from the European Union’s Generalised Scheme of Preferences Plus (GSP+) program, which grants preferential access to EU markets. However, continued eligibility for these trade privileges depends on adherence to international conventions. The upcoming assessment by an EU delegation will play a critical role in determining Sri Lanka’s future under this scheme.

The Sri Lankan government faces pressure to fulfill several obligations, including repealing the Prevention of Terrorism Act (PTA) and amending the Online Safety Act, to meet the updated requirements for GSP+ eligibility. Additionally, improvements in anti-corruption measures are necessary to align with the EU’s revised criteria for beneficiary countries, which will come into effect in 2027.

As of 2023, the EU is Sri Lanka’s second-largest trading partner, accounting for 12.4% of the country’s total trade. The primary exports to the EU include textiles and rubber products, with 49% of Sri Lanka’s total EU exports benefiting from GSP+ preferences, and a preference utilization rate of 59%.

The current GSP+ scheme remains valid until 2027, but Sri Lanka must demonstrate consistent implementation of international conventions to maintain these benefits. The EU regularly monitors compliance, and in October 2024, Sri Lanka reaffirmed its commitment to strengthening trade ties with the EU, particularly emphasizing the role of GSP+ in boosting exports.

Next week, an EU delegation will visit Sri Lanka to evaluate the country’s adherence to GSP+ requirements. This visit underscores the importance of compliance with international standards to retain preferential trade access, which is crucial for Sri Lanka’s export-driven economy.

A recent report by the Institute of Policy Studies (IPS), titled “Who Stands to Lose? The Effects of GSP+ Withdrawal on Sri Lanka’s Exports and Labour Force,” highlights the potential economic repercussions if Sri Lanka loses GSP+ benefits. The report underscores the significance of the scheme for the country’s export sector and labor market, reinforcing the necessity of continued compliance with EU requirements.

GSP+ serves as a special incentive program promoting sustainable development and good governance. It grants zero tariffs to economically vulnerable low- and lower-middle-income countries that implement 27 international conventions covering labor rights, human rights, environmental protection, and governance. Compliance with these conventions, particularly those related to environmental sustainability and governance, will be mandatory under the revised framework. Furthermore, the EU has established a mechanism for the swift withdrawal of GSP+ benefits if a country fails to meet its obligations.

Under the new system, beneficiary countries will be given a two-year transition period to ratify newly added conventions. Additionally, they must submit detailed implementation plans outlining their strategies for complying with all required conventions. The EU has already made it clear that Sri Lanka’s current form of the PTA is unacceptable and requires reform.

 The revised GSP+ framework will place greater emphasis on good governance, including anti-corruption measures such as stricter laws to combat bribery, the implementation of transparent public procurement procedures, and enhanced mechanisms to prevent corruption.

Sri Lanka previously lost its GSP+ status but regained it in 2017 after pledging to repeal the PTA. The country’s trade volume with the EU currently stands at USD 3.2 billion, with a trade balance favoring Sri Lanka. Given the importance of GSP+ in facilitating trade, ensuring compliance with EU requirements is vital for sustaining economic growth and maintaining market access.

Sri Lankan black comedy “Nelum Kuluna” gains global recognition with multiple remakes

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By: Isuru Parakrama

March 20, Colombo (LNW): A groundbreaking Sinhala-language black comedy film, Nelum Kuluna (Tentigo), has carved a unique space in international cinema, garnering widespread acclaim and spawning multiple remakes across different languages.

Directed by Ilango Ram and produced by Hiranya Perera under Silent Frames Productions, the film’s bold and satirical take on societal norms has resonated with audiences beyond Sri Lanka’s borders.

What sets Tentigo apart is its unprecedented journey into international remakes. It has become the first Sri Lankan film to be adapted into several languages, including Spanish, Italian, English, Hindi, Telugu, and Malayalam, with French and Belgian versions reportedly in development.

In a testament to its cultural adaptability, Ilango Ram himself directed the Tamil remake, Perusu (2025), which has also been adapted into Pedha in Telugu.

The film’s success has not been limited to commercial remakes. It has received significant recognition on the global festival circuit, securing the Special Jury Award at the prestigious Tallinn Black Nights Film Festival in 2023.

It has also been showcased at the Glasgow Film Festival and Mostra in 2024, further cementing its reputation as a standout piece of cinema. Additionally, Tentigo was selected for the International Competition: Fiction category at the 2nd Eikhoigi Imphal International Film Festival in 2025.

At the heart of Tentigo lies an audacious and darkly comic premise. The story revolves around a fallen middle-class family struggling to arrange their father’s funeral, only to be faced with a bizarre predicament—the deceased patriarch’s body presents an unsettling anatomical issue!

The film’s original Sinhala title, Nelum Kuluna (Lotus Tower), is an overt reference to both Sri Lanka’s tallest structure and the uncomfortable reality confronting the family, serving as a sharp critique of patriarchal taboos and societal hypocrisy.

Speaking on the challenges of adapting Tentigo for Tamil audiences, Ilango Ram emphasised the importance of cultural specificity:

“I always focus on the setting in my films—how people interact, their customs, and their festivals. Tentigo captures the essence of local Sri Lankan life, and with Perusu, we ensured the humour and themes were attuned to Tamil sensibilities. In India, each state has its own distinct cultural fabric, and we worked hard to infuse a comedic tone that would resonate with Tamil viewers.”

The Tamil adaptation, Perusu, features well-known stars Vaibhav and Niharika NM, among others, adding further weight to the film’s expanding appeal.

With its continued success across film festivals and international markets, Tentigo stands as a milestone in Sri Lankan cinema, proving that provocative storytelling transcends cultural boundaries.

Update: Former IGP Deshabandu Tennakoon further remanded!

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By: Ovindi Vishmika

March 20, Colombo (LNW): Former Inspector General of Police (IGP) Deshabandu Tennakoon has been further remanded by the Matara Magistrate’s Court until April 3, 2025.

This decision follows his surrender to the court on March 19, after nearly 20 days of evading arrest.

Tennakoon is implicated in a shooting incident near the W15 Hotel in Weligama on December 31, 2023, which resulted in the death of a Colombo Crimes Division (CCD) officer and injuries to another.

Tennakoon’s lawyers requested bail, but the Attorney General strongly opposed it, labeling him a “notorious organized criminal”.

He is currently being held at Angunakolapelessa Prison under heavy security. The case continues to unfold with further hearings scheduled.

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Former IGP Deshabandu Tennakoon to Face Court Today

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By: Ovindi Vishmika

March 20, Colombo (LNW):
Former Inspector General of Police (IGP) Deshabandu Tennakoon is set to appear before the Matara Magistrate’s Court today, where a crucial decision on his bail application is expected at 2:00 p.m. Tennakoon has been in remand custody, since yesterday.

Tennakoon’s surrender to the court followed a period of evading arrest for 20 days, after an arrest warrant was issued in connection with a shooting incident that occurred near a hotel in Weligama, back in 2023.

According to court orders, Tennakoon was transferred to Angunakolapelessa Prison under heightened security measures on last afternoon (19), as reported by the prison sources.

The Matara Magistrate’s Court had previously ordered the arrest of eight former officers of the Colombo Crimes Division (CCD), including Tennakoon, in connection with the mentioned shooting incident occurred in front of the W15 Hotel in the Pelena area of Weligama, Matara, on December 31, 2023.

Further, the CID was instructed to arrest and present the eight individuals, including Tennakoon, before the court. Prior to his surrender, the Court of Appeal dismissed a writ petition filed by Tennakoon, where he sought an interim injunction to prevent his arrest.

However, it is reported that the court’s decision today is highly anticipated, as it will determine whether Tennakoon will be granted bail while investigations continue.

LG Polls set for May 06

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March 20, Colombo (LNW): The Election Commission has officially confirmed that Sri Lanka’s highly anticipated Local Government (LG) Elections will take place on May 06.

This announcement was made during a special press conference held earlier today, marking a significant milestone in the electoral process.

The final day for accepting nominations for the elections was today, with the cut-off time set for 12:00 noon.

Following this, no further nominations will be accepted. The nomination process, which commenced on March 17, saw candidates vying for positions in 336 Local Government institutions across the country.

With the conclusion of the nomination period, the Election Commission has now been able to officially confirm the date of the elections, providing much-needed clarity for voters and candidates alike.

Furthermore, the deadline for submitting deposits for the LG Elections wrapped up yesterday (19), as part of the final stages of preparation.

Earlier in the process, the Election Commission had extended several critical deadlines, including those for nomination submissions and deposit placements, in response to various logistical concerns.

However, with the nomination phase now complete, the path is clear for the election to proceed as scheduled.

Colombo High Court denies request to unfreeze bank account of ex-Minister Keheliya Rambukwella

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March 20, Colombo (LNW): The Colombo High Court has firmly rejected a petition filed by former Minister Keheliya Rambukwella’s legal team, seeking to have the freeze lifted on his bank account at the Parliamentary Branch.

This decision comes amidst an ongoing investigation by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

The ruling was delivered by Colombo High Court Judge Adithya Patabendi, who upheld the earlier injunction order that had led to the suspension of several of Rambukwella’s financial assets, including bank accounts and insurance agreements.

As part of the initial freeze, the bank account at the Parliamentary Branch, which holds both Rambukwella’s pension and a compensation sum exceeding Rs. 95.9 million—awarded to him for damage caused by a fire to his private residence—was also included.

The freeze order, which affects both his and his family’s financial dealings, has now been maintained, despite attempts from his legal representatives to have it lifted.

Rambukwella’s legal team had argued for the immediate release of the specific account linked to the compensation funds and pension, but the court has sided with the ongoing investigation, opting to maintain the freeze for the time being.

Nomination period for LG Polls closes as objection deadline approaches

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March 20, Colombo (LNW): The official acceptance of nominations for the much-anticipated Local Government Elections has now closed, marking a significant step towards finalising candidates for the upcoming polls.

With the nomination period for 336 Local Government institutions concluding, the next critical deadline looms: objections to the nominations must be submitted by 1:30 p.m. today (20).

The nomination process, which began on March 17, has now come to a close, and the Election Commission is expected to announce the election date once the objection period ends and the necessary verifications are completed.

In addition to the nominations, the deadline for submitting election deposits, which was an essential part of the nomination procedure, has already passed as of yesterday (19).

Prima KottuMee Korean Ramen Wins Breakthrough Product of the Year at Keells Partner Power 2025 Supplier Convention

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Colombo, Sri Lanka, 20 March 2025: Prima KottuMee Korean Ramen has taken centre stage in the food industry after being honoured with the prestigious “Breakthrough Product of the Year” award at the Keells Partner Power 2025 Supplier Convention. This annual event, which celebrates innovation and excellence across Keells’ extensive supplier network, recognised Prima KottuMee Korean Ramen for its remarkable market success.

The award highlights Prima KottuMee’s commitment to revolutionising the instant noodle market along with global trends by introducing a product that brings up Korean ramen noodles. The product has gained widespread popularity for its appeal to adventurous palates, particularly among Sri Lanka’s vibrant youth.

The Keells Supplier Power Convention serves as a premier platform for celebrating suppliers who contribute to enhancing product quality, customer satisfaction, and innovation within the retail sector. The “Breakthrough Product of the Year” award is one of its most coveted honours, reserved for products that demonstrate significant impact and originality.

“We are truly honoured to be recognised as the ‘Breakthrough Product of the Year’,” said Mr Sajith Gunaratne, General Manager of Ceylon Agro Industries, Prima Group Sri Lanka. “This achievement reflects not only our dedication but also the efforts of our entire team. From our new product development specialists to our sales and marketing teams, every contribution has been instrumental in earning this prestigious recognition. We remain committed to maintaining our leadership in the industry and striving for excellence in everything we do.”

As Prima KottuMee Korean Ramen continues to make waves in the market, this recognition underscores the company’s ability to redefine the instant noodle category with creativity and flavor. The award serves as a stepping stone for Prima to expand its innovative product line further and solidify its position as a leader in the food industry, embodying its “Let’s Fire It Up” persona.

From Left to Right: Mr. Charitha Subasinghe, President of Retail at John Keells Holdings PLC, presenting the award to Mr. Sajith Gunaratne, General Manager of Ceylon Agro Industries Ltd., Prima Group Sri Lanka, alongside Mr. Donavan Ondaatje, Senior Business Manager, and Mr. Gamini Weerathunga, Modern Trade Manager, from Ceylon Agro Industries Ltd., Prima Group Sri Lanka.

Navy successfully explores historic shipwrecks off Colombo’s coast

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March 20, Colombo (LNW): The Sri Lanka Navy recently concluded a successful week-long expedition from March 10 to 17, focused on exploring and documenting several historically significant shipwrecks submerged off the coast of Colombo.

The operation was part of ongoing efforts to preserve the country’s maritime heritage while promoting it as a destination for both educational and eco-tourism.

The expedition aimed to assess the condition of various shipwrecks that lie beneath the waves, with notable inclusions such as the Coal Wreck, Chief Dragon Car Carrier, MV Astoria, MT Nilgiri, Thermopylae Sierra, MV Pecheur Breton, Taprobane East Wreck, SS Worcestershire, Toilet Barge, and SS Perseus, alongside a number of unidentified wrecks.

Among the most notable sites explored were the SS Worcestershire and SS Perseus, both of which were sunk during World War I, adding to the historical significance of these wrecks.

In addition to their historical value, wrecks such as the Chief Dragon Car Carrier and Thermopylae Sierra have evolved into vital artificial reefs, supporting diverse marine life and contributing to the region’s marine ecosystem.

A team of 14 diving officers and 15 diving sailors carried out the operation, employing a mix of atmospheric air and nitrox air mix as breathing gases, depending on the depth and duration of each dive. This approach ensured greater safety and operational efficiency, especially for the deeper dives required to explore these sites.

This initiative is part of the Navy’s commitment to the “Clean Sri Lanka” programme, which aims to protect the nation’s maritime environment while preserving its rich history beneath the waves.

These efforts not only enhance the educational and archaeological value of the shipwrecks but also contribute to the promotion of Sri Lanka as a unique and attractive destination for maritime and eco-tourism.