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Cabinet Clarifies Stance on Adani Wind Energy Projects in Sri Lanka

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Cabinet Clarifies Stance on Adani Wind Energy Projects in Sri Lanka

Sri Lanka’s Cabinet Spokesman, Minister Dr. Nalinda Jayatissa, has clarified that the government has not made any decision to cancel the agreement with India’s Adani Group for wind energy projects in Pooneryn and Mannar. Speaking at a special press conference today (25), the Minister emphasized that the Cabinet’s focus is solely on reviewing the proposed electricity tariffs for the projects.

Dr. Jayatissa stated, “The Cabinet has decided to review the tariffs to ensure they are more beneficial to the energy sector and the people of Sri Lanka. This does not imply that the projects have been cancelled.”

A committee has been appointed to examine the terms of the agreements, with the goal of optimizing their benefits while maintaining the country’s energy goals.

The Minister also highlighted the ongoing legal challenges surrounding the Adani wind energy projects. “Currently, five court cases related to these agreements are before the judiciary, with one scheduled for hearing in May. The government is closely monitoring the outcomes of these proceedings before making a final decision,” he added.

Minister Jayatissa reassured the public that any decisions regarding the agreements with the Adani Group would prioritize national interest and energy sector improvements. “Our objective is to implement these agreements in a manner that supports Sri Lanka’s energy goals while safeguarding the interests of our citizens,” he said.

The clarification comes amid growing public interest and scrutiny regarding the government’s energy policies and international agreements.

Sri Lanka’s Apparel Exports in 2024 Reach USD 4.7 Billion with 5% Growth

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Sri Lanka’s Apparel Exports in 2024 Reach USD 4.7 Billion with 5% Growth

Sri Lanka’s apparel sector recorded export earnings of USD 4.7 billion in 2024, marking a year-on-year growth of nearly 5%, according to the Joint Apparel Association Forum (JAAF). The overall export value exceeded USD 5 billion, reflecting gradual recovery and resilience amid global and domestic challenges.

Performance Compared to Pre-Pandemic Levels
While 2024’s performance represents growth, it remains 10.3% below the USD 5.3 billion achieved in 2019, the last “normal” pre-pandemic year.

Export Highlights by Market:

  • United States: Exports grew by 5.23% to USD 1.9 billion, though the figure remains 19.4% below 2019 levels, showcasing the potential for further recovery.
  • United Kingdom: A robust growth of 7.65%, nearing parity with 2019 levels, driven by sustained demand for ethical and sustainable garments.
  • European Union: Modest growth of 0.81%, with the sector maintaining a foothold in a competitive and regulated market.
  • New Markets: Exports to new destinations grew by 10.13%, reflecting successful market diversification and direct-to-third-country shipping trends.

Strategic Developments: Eravur Textile Zone
The Eravur Textile Zone is a pivotal initiative aimed at localizing fabric production. Spanning 300 acres, the zone is designed to accommodate facilities for textile dyeing, washing, knitting, weaving, and related processes. It is expected to significantly reduce foreign exchange outflows, cut production lead times, and enhance competitiveness.

“Localizing fabric production is essential for increasing competitiveness and meeting global market demands. The Eravur Textile Zone is a lifeline for the industry,” said Yohan Lawrence, Secretary-General of JAAF.

Challenges and Future Actions
Despite growth, the sector continues to face challenges, including:

  • Downward pricing pressure.
  • High energy costs: Recent electricity tariff adjustments are a positive step but further energy cost reductions are needed.
  • Operational inefficiencies: Bottlenecks at the Colombo Port hinder smooth export processes.

Policy Recommendations:

  • Enhanced market access.
  • Enabling infrastructure projects like the Eravur Textile Zone.
  • Transparent and predictable electricity pricing.
  • Resolving operational challenges in logistics and ports.

Sector Outlook
JAAF’s analysis over the past five years shows a gradual recovery from the pandemic-induced dip in 2020, when exports fell to USD 4.1 billion, a 22% drop from 2019. The 5% growth in 2024 highlights resilience but underscores the need for strategic measures to strengthen long-term growth and competitiveness.

Sri Lanka’s apparel sector remains a vital contributor to the economy, with its focus on ethical manufacturing and sustainability driving demand in key markets.

Build Sri Lanka Development Society Relaunches Funding Projects to Boost Economy

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Build Sri Lanka Development Society Relaunches Funding Projects to Boost Economy

The Build Sri Lanka Development Society (BSDS), in collaboration with Global Business Enterprise Brussels, Belgium, has relaunched its funding initiatives in Sri Lanka and the Maldives. The projects aim to provide 100% funding without requiring collateral or guarantors, offering a significant boost to Sri Lanka’s economy.

BSDS was initially launched in 2018 to position Sri Lanka as a premier investment destination by attracting foreign investments and joint venture partners. Despite identifying numerous promising projects, its efforts were disrupted by the COVID-19 pandemic, economic instability, and political challenges, which deterred foreign investors.

Renewed Optimism and Investment
Dr. Prabath Ukkwatte, a consultant for BSDS, expressed optimism, citing the reestablishment of political stability, the rule of law, and Sri Lanka’s improved economic outlook. President of BSDS, Jude L. Ukkwatte, announced that the organization has secured nearly €500 million in funding for nine projects across Sri Lanka and the Maldives.

“We are now looking to facilitate more funding for projects ranging from €5 million to €1 billion, focusing on attracting entrepreneurs and investors globally to build a better Sri Lanka,” Ukkwatte said.

Key Projects in Sri Lanka and the Maldives

  1. Sri Lanka Projects:
    • Two Waste-to-Energy projects by O2N Lanka Ventures Pvt Ltd in Karadiyana (€225 million).
    • A biogas project by Lanka BioGas Oluvil Pvt Ltd (€65 million).
  2. Maldivian Projects:
    • Renovation and upgrading of Medhufushi Island Resort (€25 million) and Fillitheyo Island Resort (€25 million).
    • Development of a new five-star resort, Seedheehuraa Island Resort (€75 million).

Promoting Investments and Business Opportunities
BSDS is also planning International Investment and Development Conferences in Sri Lanka to attract global investors. Previously, it organized the Asia Hotel & Tourism Investment Conference in Colombo, which brought together over 300 international delegates from 48 countries.

To further promote Sri Lanka as an investment hub, BSDS operates the Sri Lanka Business Channel on YouTube, offering English-language business news and interviews to engage the global business community.

For more information, visit www.buildsrilankasociety.com.

Coconut Cultivation Board Targets 3 Million Coconut Plants in 2025

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Coconut Cultivation Board Targets 3 Million Coconut Plants in 2025

The Chairman of the Coconut Cultivation Board, Dr. Sunimal Jayakody, announced plans to cultivate three million coconut plants next year.

Dr. Jayakody highlighted that this ambitious target aligns with efforts to enhance coconut production and ensure the sustainability of the industry. The Coconut Triangle, a key agricultural region in Sri Lanka, will receive further support under the leadership of President Anura Kumara Dissanayake to strengthen these initiatives.

This development is part of broader efforts to boost agricultural productivity, support rural livelihoods, and meet the growing demand for coconuts and coconut-based products both locally and internationally.

Rare Tickell’s Bat Rediscovered in Sri Lanka After 58 Years

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Rare Tickell’s Bat Rediscovered in Sri Lanka After 58 Years

The Tickell’s Bat (Hesperoptenus tickelli), a rare species last recorded in Sri Lanka in 1963, has been rediscovered, according to Dr. Tharaka Kusuminda, a bat researcher at the Department of Zoology, University of Colombo.

Dr. Kusuminda revealed that this small-bodied bat, belonging to the Vespertilionidae family, had been classified as a “data deficient” species in the Red Data List due to the absence of sightings for nearly six decades.

Three individuals of this elusive species were recently discovered in separate locations: Eknaligoda in Kuruwita, Halloluwa in Kandy, and Hokandara in Colombo.

The rediscovery sheds light on the species’ potential survival in dry, wet, and intermediate ecological zones, although little is known about its behavior, habitat, or lifestyle. Dr. Kusuminda noted that Hesperoptenus tickelli appears to roost among tall, large-leaved plants, but further research is needed to understand its ecology.

The initial specimens collected in 1963 are housed at the National Museum in Colombo. This recent finding underscores the importance of continued conservation efforts and research to better understand and protect Sri Lanka’s biodiversity.

WEATHER FORECAST FOR 26 JANUARY 2025

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WEATHER FORECAST FOR 26 JANUARY 2025

Showers or thunder showers will occur at times in Uva and Southern provinces and in Ampara, Batticaloa, Matale and Nuwara-Eliya districts. A few showers are likely in Northern, North-Central and North-Western provinces and in Trincomalee district.

Showers or thundershowers will occur at several places in Western and Sabaragamuwa provinces and in Kandy district during the evening or night.

Fairly heavy showers about 50 mm can be expected at some places in Sabaragamuwa province and in Galle and Matara districts.

Fairly strong winds of (30-40) kmph can be expected at times over Eastern slope of the central hills and Northern, North-central and North-western provinces and in Matale and Hambantota districts.

Misty conditions can be expected at some places in Central and Sabaragamuwa provinces and in Galle and Matara districts during the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

DOES THE NEED FOR PUNISHMENT FADE AS MISTAKES BECOME OLD?

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DOES THE NEED FOR PUNISHMENT FADE AS MISTAKES BECOME OLD?


January 25, 2025


The above is a letter received this year regarding a fine
imposed on Sri Lanka under International Rugby Union
Regulation 8.1(c) for several years now, which has not yet
been paid. The reason for imposing this fine is that under
Regulation 8.1(c), foreign players who do not meet the
qualifications required to be used by another country for
another country must be allowed to play for Sri Lanka.
The Director General of Sports, who managed the
administration of rugby, is fully aware of this matter. If this
is the government’s policy, it suggests that the government
can absolve itself of any wrongdoings highlighted during
election campaigns without investigation, as those too
would be considered unrelated to their tenure and the harm
caused to the country.
According to the Director General of Sports, the fine,
which has added a black mark to the country’s sports and
affected the development of rugby in the country, does not
concern him.
However, the impact of deducting the penalty for this
offence from the funds allocated for rugby development in
the country continues to be felt even today. The
accompanying photograph highlights the order issued on
January 1st of this year, directing the payment of £5,000
from the total fine of £50,000.
Due to the non-implementation of these penalties, both the
president and secretary of the administration at the time
who committed the offence are now involved in the Asia
Rugby Administration. Although the Sri Lanka Rugby
administration was dissolved at the last moment, the
current Director of Sports appointed the second individual
to lead that administration. He claims this decision was
made at the request of Harin Fernando and World Rugby.
Instead of obeying and fulfilling it as soon as he was told,
the Director General of Sports should have told the
Minister at that moment that it was inappropriate to
reinstate the president who was removed because the
Minister was not fulfilling his responsibilities properly.
But he did not say so, and the appointment made without
saying so would allow him to win a responsibility in Asia.
After that, the Director General of Sports, not
understanding the court’s decision, is trying to amend the
existing rugby constitution, claiming that Asia and World
influence is being exerted. Meanwhile, he is trying to
prepare a constitution that will pave the way for those who
find it difficult to gain power under the current constitution
to return to power, while stalling the elections that the court
has ordered to be held.
It is evident that Priyantha Ekanayake, an official who
frequently advises government politicians on managing the
sport and serves on the National Sports Council, is also
aware of this. Neither World Rugby nor Asia Rugby has
regulations specifying how elections must be conducted
according to a country’s rugby constitution. These
regulations have been violated in the issues highlighted in
this letter.
As a result, the fines are still being paid. Shouldn’t the
Sports Director General and Priyantha Ekanayake
highlight to the ministers and the newly appointed
Secretary that a grave injustice has been done to the
country’s sports by violating the regulations?
They should emphasize that those responsible must be held
accountable and point out that the group behind these
wrongdoings, whose actions were politically influenced to
appease certain individuals, can be clearly identified by
examining the relevant time period of that decision.
Also, if there is an election system that has harmed the
clubs playing in the ‘A’ devision in the World Rugby and
Asia, it should be clarified how the people who came from
those clubs created the problems that rugby is currently
facing. Even though Priyantha Ekanayake came from those
clubs, the Director General of Sports, who is a free and
independent person, should be able to understand that
without bias.
The simplest thing is to work under the pressures imposed
by the international community without regard to the
punishment of those who have violated international
regulations. The Minister of Sports has already practically
understood how to solve all of them and has achieved
success. When the law is lifted or sanctions are imposed
after taking advice from the Attorney General of that
country, it is impossible to influence Sri Lanka by using the
international community as a manipulating hand, and those
who have been punished or sanctioned under the law of
their own country are not held accountable by international
organizations.
The decision to amend the constitution should be
entrusted to the administration elected through a process
conducted in accordance with the current constitution.
Any potential injustices caused to the sports clubs in that
category can be evaluated by reviewing the clubs
represented by the officials who have held office thus far.
Allegations against these officials include imposing fines
on rugby, depleting the rugby account, and accumulating
a significant amount of debt. At least there is no morality
in bringing such people to office through their sports
clubs. The Minister must act prudently to safeguard sports
from those who, instead of offering genuine advice,
enable and support individuals who misuse their
influential social connections to act with impunity.
The only question that needs to be asked of everyone is:
Under what regulation does the international community
have the power to suggest that this should be the official
election system, regardless of the country’s sports policies
and other unique factors? Why don’t the officials and
consultants who encourage the government to work under
a different regulation be prosecuted for those who have
committed violations under the regulations? The
government’s misleading actions present us with the image
of someone giving a speech in the middle of a large
gathering, naked , but the question is why the government
cannot see this nakedness.

Awareness Programme Held on Implementation of Electronic National Identity Card (e-NIC)

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Awareness Programme Held on Implementation of Electronic National Identity Card (e-NIC)

An awareness programme on the Electronic National Identity Card (e-NIC) project was held today (24) at the Information and Communication Technology Agency of Sri Lanka (ICTA) in Colombo. The event, organized under the patronage of Deputy Minister of Digital Economy Eranga Weeraratne, sought to address operational challenges and discuss the rollout of the e-NIC initiative.

The session provided a platform for stakeholders to share ideas and develop solutions to ensure the effective implementation of e-NICs, which are central to the government’s vision of a digitally empowered economy.

Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy and Chairman of ICTA, and ICTA Director Sanjaya Karunasena contributed valuable insights during the discussion.

The President’s Media Division (PMD) highlighted that the programme is a significant step towards streamlining the e-NIC process, ensuring a seamless transition for citizens. The initiative aligns with the government’s broader digital transformation agenda aimed at modernizing public services and boosting efficiency.

The e-NIC project is expected to enhance the digital identity infrastructure in Sri Lanka, supporting secure and efficient access to services for citizens across various sectors.

AKD Government Reviews Adani’s Wind Power Projects amid Controversy

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AKD Government Reviews Adani’s Wind Power Projects amid Controversy

India’s Adani Group’s proposed wind power projects in Sri Lanka, located in the northern regions of Mannar and Pooneryn, are under review by the new government.

This decision stems from President Anura Kumara Dissanayake’s campaign promise to reassess the terms of the projects, particularly the tariffs, which his administration views as excessive.

The National People’s Power (NPP), led by Dissanayake, has expressed concerns about the high price set for the electricity generated by the projects.

In early January 2025, the Sri Lankan Cabinet rescinded a prior decision made in May 2024 under former President Ranil Wickremesinghe’s administration, which had approved the wind power deal.

At that time, a tariff of 8.26 cents per kilowatt-hour was set for the 484 MW wind power project, sparking public outcry over the inflated cost compared to local bids that were as low as 4.88 cents.

Legal challenges from activists and environmental groups further complicated the situation, with concerns raised about the environmental impact of the wind farms, particularly their effect on local wildlife and migratory birds in the region.

The new government has since appointed a Project Committee and a Cabinet Appointed Negotiating Committee to reassess the Adani proposal and ensure alignment with current energy policies.

 An Adani spokesperson stated that the decision to re-evaluate the tariff was part of a standard process under a new government, ensuring that project terms align with its priorities. 

Adani remains committed to investing in Sri Lanka’s green energy sector, particularly the $1 billion earmarked for renewable energy.

The projects have faced significant opposition from environmental organizations such as the Wildlife and Nature Protection Society and Environmental Foundation Ltd. 

These groups criticized the project’s Environmental Impact Assessment and the location’s ecological significance.

 Furthermore, the local community, including the Bishop of Mannar, strongly opposed the project, citing concerns over its potential harm to local industries and livelihoods.

Amid these challenges, President Dissanayake pledged to cancel the deal and call for international tenders to develop wind power in Sri Lanka.

This pledge was fulfilled on December 30, 2024, when the Cabinet officially revoked the previous government’s decision to award the project to Adani Green Energy SL Ltd.

The President’s commitment to transparency and financial integrity was lauded by environmentalists, with figures such as biodiversity scientist Rohan Pethiyagoda celebrating the Cabinet’s decision.

Pethiyagoda, a vocal opponent of the Adani project, highlighted the corruption and lack of transparency in the previous administration’s dealings. 

He called for an investigation into the significant price markup that would have seen Sri Lanka pay 70% more for electricity compared to local bids, potentially resulting in billions of dollars in excess costs. 

He expressed optimism for a more transparent and accountable process under the NPP government, noting that the new Project Committee would be tasked with inviting international bids for the wind power development.This shift in policy marks a significant change in Sri Lanka’s approach to renewable energy projects, signaling a move toward more competitive and transparent bidding processes. It remains to be seen whether Adani, along with other international companies, will be able to compete fairly under the new framework

Sri Lanka’s Tea Export Success in 2024: Key Insights and future Outlook  “

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Sri Lanka’s Tea Export Success in 2024: Key Insights and future Outlook  “

Sri Lanka’s tea export industry witnessed modest progress in 2024, with total exports reaching 245.7 million kilograms, valued at $1.4 billion.

While the volume was only marginally higher than 2023’s 241.9 million kilograms, the export value hit a record high of Rs. 437 billion ($1.435 billion).

 This achievement, despite challenges such as fluctuating production levels and currency appreciation, highlights the resilience of Sri Lanka’s tea sector.

The increased Free on Board (FOB) value of $5.83 per kilogram, compared to $5.35 in 2023, underscores the rising global demand for premium Ceylon Tea.

However, declining earnings for farmers and estates due to the appreciating Sri Lankan Rupee (LKR) pose a concern. As Sri Lanka seeks to regain its earlier export peaks, addressing production constraints and navigating global market dynamics will be key.

Performance Overview

The 2024 export figures reflect underperformance compared to historical standards. The country’s peak export volume was 327 million kilograms in 2014, generating $1.6 billion in revenue.

 In contrast, the 2024 production stood at 262 million kilograms, with domestic consumption absorbing the remainder. Asia Siyaka Commodities PLC highlighted this low production as a significant factor limiting export growth.

Packaged tea exports declined by 6%, falling to 101 million kilograms from 108 million in 2023. Conversely, tea bag shipments rose by 10% to 25.5 million kilograms, marking a positive trend.

Green tea exports also grew by 4%, reaching 4.6 million kilograms, though instant tea shipments saw a slight decrease.

Key Export Markets

Iraq retained its position as the largest importer of Sri Lankan tea in 2024, with shipments increasing by 5% to 34.2 million kilograms.

However, this market remains low-value, with an average FOB of $4.41 per kilogram. Russia followed with a 10% increase, importing 24.9 million kilograms at an FOB of $5.81. The UAE demonstrated strong growth, with exports rising by 14% to 21.1 million kilograms.

Conversely, exports to Turkey dropped sharply from 30.4 million kilograms in 2023 to 17.7 million kilograms, reflecting market instability.

China recorded a slight decline of 6%, importing 11.5 million kilograms. Iran’s imports surged by 60% to 10.4 million kilograms, driven by the ongoing tea-for-oil debt agreement.

 Other significant markets included Saudi Arabia, which increased imports by 30% to 9 million kilograms at a high FOB of $7.83, and Chile, which imported 8.3 million kilograms, up from 7.3 million in 2023.

Outlook for 2025

Asia Siyaka Commodities expressed optimism for 2025, citing improved geopolitical conditions in key markets.

The Middle East and North Africa, which accounted for 50% of exports, are expected to recover as political and economic stability improves. Syria, for example, imported 7.4 million kilograms in 2024 but has historically absorbed up to 30 million kilograms annually. Peace and stability could help this market rebound.

Libya’s economic prospects are tied to resolving political disputes and ensuring stable oil production. The country imported 10 million kilograms in 2024 at a low FOB of $3.96, but there is potential for both volume and value growth.

Similarly, Russia’s ongoing challenges could shift if the conflict with Ukraine ends, unlocking opportunities for increased exports to both Russia and Ukraine.

Overall, Sri Lanka’s tea industry faces both opportunities and challenges in 2025. Enhanced production, strategic market diversification, and effective responses to geopolitical developments will be critical for sustaining growth and maximizing export revenue.

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